Parliament should not act as risk arbiter for firms, says Foo

Minister of State for Trade and Industry Foo Cexiang has pushed back against suggestions that Parliament should oversee individual firms' investment decisions, contending that lawmakers are not equipped to evaluate commercial risk-taking.

Foo argued that Members of Parliament do not possess the operational data, technical expertise, or mandate required to determine the appropriate level of commercial risk for private companies. His remarks were made in response to questions regarding Singapore Airlines' investment strategy, specifically its stake in Air India.

The minister's position reflects the government's stance that strategic investment decisions remain the purview of corporate boards and management, who have direct access to detailed financial information and market analysis. Parliamentary oversight, he suggested, should focus on broader regulatory frameworks and policy matters rather than individual corporate transactions.

The distinction underscores Singapore's approach to balancing corporate governance with legislative accountability, where Parliament's role is framed as establishing rules for the business environment rather than adjudicating specific commercial ventures undertaken by listed companies.