Corporate governance 'essential' in Asia

Asian companies should adopt good corporate governance procedures to achieve faster growth than their rivals, a risk management specialist has suggested.

Moses Ojeisekhoba, senior vice-president of the Chubb Group of Insurance Companies, recommended that executives working in the Far East ensure their corporations focus on the core governance principles of responsibility, accountability, transparency and fairness.

Speaking to 180 business leaders in Singapore, the risk expert claimed that this will protect their organisations against unfamiliar legal liabilities and allow them access to capital and new markets.

Mr Ojeisekhoba explained that this is particularly valuable advice in current international markets, which have been severely altered by the financial crisis.

He said: "The success of a company's corporate governance is reflected not only in its reputation but also more tangibly in its ratings and ability to access capital, local as well as foreign."

Yesterday (October 8th), Singapore's finance minister Tharman Shanmugaratnam offered similar advice by suggesting that executives must learn corporate governance lessons from the economic downturn.