Raymond Cheung
Chartered Actuary · CRO · Board Adviser · Singapore
SGX CEO Loh Boon Chye told the exchange's AGM on 23 October 2026 that succession planning should begin, with his contract running to mid-2027. When the CEO is the one who opens the succession conversation, every Singapore board should ask who really owns its own.
When I was CEO of a Nasdaq-listed company, the succession conversation I found hardest was the one I had to start myself. Boards rarely raise it with a CEO who is delivering, and a CEO who raises it risks sounding like he is halfway out of the door. So I read Loh Boon Chye's statement at SGX's annual general meeting on 23 October with some sympathy, and with a question for every board in Singapore. [CONFIRM with Raymond: replace with a real episode if possible]
The facts are simple. Loh has led SGX since July 2015 and his contract runs to mid-July 2027. At the AGM he said he had told the chairman that planning for an eventual transition should begin. No date has been set, and the shares moved only slightly on the news.
The signal is who started it
I have no inside view of SGX's board process, and its board may well have a mature plan already. The lesson for other boards is in the sequence as it was told in public: the CEO prompting the board. In most boardrooms I have worked with, that is how CEO succession actually begins. The incumbent raises it, falls ill, or loses the board's confidence. Provision 4.1 of the Code of Corporate Governance gives the nominating committee responsibility for CEO succession plans, but a plan that only comes alive on the CEO's cue is not one the board owns.
“If your CEO has to be the one to raise succession, the board has already handed over the timetable.”
A contract end date is a governance deadline
Twenty-one months sounds generous. For an organisation of SGX's profile it is not. The board has to agree a profile for the next CEO from the strategy, assess the internal bench honestly, benchmark externally, and allow for a handover overlap. For MAS-regulated institutions, the CEO appointment also needs MAS approval, which adds time. Every board should know when its CEO's contract ends and work backwards from that date at least two years out.
Three questions I would put to any nominating committee this quarter:
- When does our CEO's current contract end, and when did the board last discuss what happens on that date?
- Would we have started this conversation if the CEO had not?
- Is our emergency cover arrangement written down, approved, and known to the person who would step in?
I set out the fuller framework in CEO succession planning for Singapore boards, and the director-level equivalent in nominating committee succession planning. Investors will tolerate a long, well-run transition. What they punish is a board that looks surprised.
Common Questions
When should a Singapore board start CEO succession planning before a contract ends?
In my view, at least two years before the CEO's contract end date, and earlier for regulated institutions where MAS must approve the appointment. That leaves time to agree a profile, assess internal candidates, benchmark externally and plan a handover. CEO succession planning in a Singapore listed company should be a standing agenda item, not something triggered by the contract calendar.
Who is responsible for CEO succession planning at an SGX-listed company?
Provision 4.1 of the Code of Corporate Governance gives the nominating committee responsibility for recommending succession plans for the CEO, the chairman and key management personnel. The full board should own the outcome. The CEO builds the internal bench but should not control the timetable.
Is it a bad sign when a CEO publicly calls for succession planning?
Not necessarily. A CEO who raises succession openly is often acting responsibly, and markets usually react calmly when the board follows with a clear process. The governance question is whether the board already had a plan, or only started one because the CEO asked.
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About the author
Raymond Cheung is a Chartered Actuary, C-suite executive and board adviser with more than 20 years of experience across Asia in risk management, insurance, ESG and corporate governance. He is the CEO of CER Consultancy and an accredited trainer at SMU Academy and the Singapore College of Insurance.