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Raising the Bar for Directors in Singapore - Strengthening Board Competence Through Professional Standards and Accreditation
Insights from the
Singapore Institute of Directors (SID)
In the rapidly evolving landscape of corporate governance, the demand for competent and effective board directors has never been greater.
As Singapore strengthens its position as a trusted global financial hub, there is an increase in expectations for strong board leadership and rigorous stewardship to preserve and increase the value of companies.
To meet rising expectations, and to equip directors with current and relevant knowledge and skills to mitigate emerging risks and harness new opportunities, professional development and standards are key.
The Singapore Institute of Directors (SID), as Singapore's national association for company directors, has been providing director training since its inception in 1998. It takes a forward-looking approach to ensure its thought leadership and training programmes keep pace with regulatory changes and prepare directors to meet future market needs.
Professional Development and Standards
In Singapore, the government has set the tone for standards and training. Singapore's Code of Corporate Governance requires board directors to understand their company's business as well as their directorship duties, and that “Induction, Training and Development” of new and existing directors should be disclosed in the company's annual report (Provision 1.2). This ensures that the board remains effective and relevant in the face of changing corporate risks.
Singapore Exchange (SGX) Listing Rules mandate that first-time directors of listed issuers (with no prior experience on a listed board) must undergo training in the roles and responsibilities of a director (Rule 210(5)(a) of the Mainboard Rules and Rule 406(3)(a) of the Catalist Rules). This regulatory baseline ensures that every new entrant to the boardroom is equipped with the foundational knowledge to discharge their fiduciary duties.
SID's flagship Listed Entity Directors Programme is an officially-endorsed course that enables directors to meet that training criteria. With regular updates to ensure its relevance (e.g., a module on environmental, social and governance issues was added in 2022), more than 1,000 individuals, including directors from overseas, go through the programme each year.
To complement its ongoing efforts to raise the professional standards of directors, SID launched its Director Accreditation programme in 2024, which was developed with inputs from academics, practitioners and key regulators like the Monetary Authority of Singapore, Accounting and Corporate Regulatory Authority, SGX and Commissioner of Charities.
Just as how certification identifies individuals with the knowledge and skills to perform in a specific profession, the SID Director Accreditation programme communicates director competencies through continuous professional development.
With participation completely voluntary, the programme informs boards and shareholders of the credential holder's commitment to acquire and maintain standards of professional development expected of a board member. “Senior Accredited Director” denotes a minimum of five years of relevant directorship experience.
Rigour and Credibility
The accreditation programme is based on the SID Director Competency Model which defines specific domains required for effective directorship. To be accredited, a director must demonstrate proficiency across eight critical competencies:
• Governance: Structural and regulatory architecture of the board.
• Director Duties and Practices: Fiduciary and legal obligations of the role.
• Financial Skillsets: Financial statements and capital efficiency.
• Risk Management: Enterprise risks.
• Strategy Development: Long-term vision of the organisation.
• Digital Skillsets: Complexities of technology and cyber security.
• Human Capital: Talent management and succession planning.
• Sustainability Fundamentals: ESG considerations in business strategy.
In Singapore, the government has set the tone for standards and training. Singapore's Code of Corporate Governance requires board directors to understand their company's business as well as their directorship duties, and that “Induction, Training and Development” of new and existing directors should be disclosed in the company's annual report (Provision 1.2). This ensures that the board remains effective and relevant in the face of changing corporate risks.
An accreditation exam evaluates candidates based on the areas of competencies. Assessment items are based on global best practices and supplemented by field testing and item analysis.
To ensure the SID Director Accreditation programme has rigour, integrity, validity and currency, SID established an independent Standards and Exams Board (SEB) to oversee, review and set the standards for the accreditation exam. Comprising distinguished leaders from academia, legal and corporate sectors, the SEB ensures the highest level of oversight.
The other component of the accreditation programme is continuous professional development. All accredited directors are required to achieve at least 40 hours of continuous professional development over a two-year period to maintain their accredited status.
To further ensure the integrity of the accreditation programme, accredited directors must adhere to SID's Code of Professional Conduct and Code of Conduct for Members. Accredited directors found guilty of breaching the respective codes and regulations will have their accreditation credentials revoked.
Members of the public can check on the status of accredited directors via an SID registry. The Institution has a whistleblowing policy and engages an external firm to conduct an internal audit on its accreditation process to ensure internal controls are in place.
Moving forward
Since the launch of the accreditation programme, more than 1,600 individuals have been accredited, against a backdrop of just over 3,100 board directors on listed company boards in Singapore.
SID plans to expand the recognition of its accreditation programme beyond Singapore. To this effect, it has partnered with local and international institutes such as the Singapore Management University, INSEAD, IMD, and a top Chinese university on mutual recognition. It is already seeing growing interest from global directors in attaining SID's accreditation credentials.
Raising the bar for directors has always been the mission of SID. Through this new competency-based programme, it is perhaps not only helping Singapore strengthen its global positioning, but also helping directors and businesses thrive globally as well.
Back to HomeAuthor
Mr. Terence Quek
Chief Executive Officer - Singapore Institute of Directors (SID)
Owned by: Institute of Directors, India
Disclaimer: The opinions expressed in the articles/ stories are the personal opinions of the author. IOD/ Editor is not responsible for the accuracy, completeness, suitability, or validity of any information in those articles. The information, facts or opinions expressed in the articles/ speeches do not reflect the views of IOD/ Editor and IOD/ Editor does not assume any responsibility or liability for the same.
