The Asian Corporate Governance Association (ACGA) has released its 2023 report, revealing the most significant shifts in corporate governance rankings across Asia in two decades. This year’s report indicates a dynamic evolution in the region’s corporate governance landscape, with several countries making remarkable strides, while others experience notable setbacks.
At the forefront, Japan has made an impressive jump from fifth to second place, reflecting its vigorous corporate governance reforms and proactive measures by the Tokyo Stock Exchange to enhance shareholder value. Taiwan, with its new initiatives like the “Sustainable Development Guidemap” and the establishment of a Commercial Court, climbed a notch, tying with Singapore for third place. This climb signifies Taiwan’s commitment to advancing its corporate governance framework.
In contrast, Hong Kong experienced a substantial decline, falling from a joint second to a joint sixth position. The ACGA attributes this fall to the region’s changing political landscape and its impact on government and public governance, as well as civil society and media.
Australia continues to lead the rankings, maintaining its top position with a slight increase in its score. Other notable movements include Korea’s rise to eighth place and India’s advancement, reflecting the impact of reforms and active governance agents in these markets.
The ACGA’s analysis also delves into sectoral rankings, with transport and infrastructure emerging at the top. Additionally, the report highlights the correlation between strong corporate governance and higher social scores, underscoring the importance of gender diversity and effective management skills in driving corporate success.
The 2023 rankings paint a vivid picture of the evolving corporate governance scene in Asia, marked by Japan’s surge, Taiwan and India’s upward movement, and Hong Kong’s notable decline. These changes underscore the importance of adaptability and proactive governance in today’s fast-paced business environment.
