SINGAPORE INCS CHALLENGES

REPUTATION OF SINGAPORE AT STAKE?

Corruption free Economy Robust, rational and prudent policies? International Exchange? Failed to enforce Corporate Governance

The Fall of CAO

Speculative Transactions Misrepresentation of Financial Statements Accounts Receivable = Accounts Payable Assets-Liabilities ratio was 73% Failure of Regulators

The After Effects

Standards of Corporate Governance in Chinese firms Lack of expertise in maintaining Corporate Governance Rumors defaming Chinese firms listed in Singapore Investor s trust shaken towards China

Singapores reaction
Consider each company on merit Suspended trading in CAO stocks Appointed Special Auditor PricewaterhouseCoopers Criminal Investigation Critics demanded modification in policies