The Singapore Exchange announced 11 areas in which listed companies will face tougher regulatory measures, with the focus on "enhancing corporate governance and extending the role of intermediaries".

One of the key amendments will be a requirement for firms to have two independent directors permanently on the board, rather than just at listing as it currently stands.

Foreign-listed firms will also be required to have at least two resident board directors who are qualified to advise management on local corporate laws.

Foreign companies will further need to have another director, as well as an officer in executive capacity, who are residents in Singapore.

All companies will also be required to give an assurance when providing interim results that, "to the best of their knowledge, nothing has come to the attention of the board of directors that may render the financial results to be false or misleading".

The board and chief executive officers will further be required to give an annual confirmation that internal controls are in order.

"As the market evolves, we continue to uphold the principles that can be applied consistently to regulate and promote an open and informed market," Singapore Exchange chief executive Hsieh Fu Hua said in a statement announcing the amendments.

"The rules underlying these principles need to be constantly sharpened to ensure their relevance and effectiveness in meeting market needs, yet taking care not to be overly prescriptive."

The Singapore Exchange's changes will be open for public consultation until July 1. The Monetary Authority of Singapore will give the final approval following the public consultation process.

Moves by the Singapore Exchange to improve corporate governance standards come after a string of scandals involving listed firms, the most high profile of which has revolved around jet fuel trader China Aviation Oil.

China Aviation Oil, whose parent firm is owned by the Chinese government, admitted in November to losing US$550 million in unauthorised speculative trading on the world oil market.

It sought court protection while awaiting for creditors to approve its debt repayment plan, in what has been the biggest corporate scandal in Singapore since Nick Leeson bankrupted Barings Bank a decade earlier.

In an earlier scandal, a finance manager with Asia Pacific Breweries was jailed in April 2004 for 42 years for cheating German and Japanese banks here of US$71 million.

The Commercial Affairs Department, which probes white collar crime, is also currently investigating mobile phone repair company Accord Customer Care Solutions (ACCS) and electronics waste recycler Citiraya for alleged wrongdoing.

Audit firm PricewaterhouseCoopers said last week Accord overstated its revenues in the financial year 2003 while Citiraya is being sued by a group of creditors including DBS Bank for the return of S$38.6 million (US$22.4 million).

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