Over the past decade, companies listed on Asian stock exchanges have made significant strides in board diversity. This has been driven by a global recognition for the importance of gender equity as well as key changes to corporate governance standards within major Asian markets. These initiatives have so far met with varying degrees of success. This article provides a short overview of this complex topic as it manifests in the complex landscape of Asia and some considerations for the road ahead.
Gender Diversity
Singapore has shown remarkable improvement in gender diversity on corporate boards. The proportion of companies meeting gender diversity criteria doubled from 8% in 2020 to 17% in 2025. Furthermore, women’s representation on boards of the top 100 SGX-listed companies reached 25.3% by the end of 2024, surpassing the ‘25% by 2025’ target set by the Council for Board Diversity.
In comparison, Southeast Asia as a whole has seen women’s representation on corporate boards rise from 17.1% in 2021 to 19.9% in 2023. This regional progress demonstrates a growing recognition of the value of gender diversity in boardrooms.
Cultural and Age Diversity
While gender diversity has improved, cultural diversity in Singapore has faced challenges. The percentage of boards with at least one-third of directors from a non-majority culture decreased from 18% in 2020 to 14% in 2025. This decline highlights the need for continued efforts to promote cultural diversity in boardrooms.
Age diversity, however, has shown improvement. The 2025 Singapore Board Diversity Index reported progress in age mix among board members.
Industry Experience and Domain Expertise
Singapore-listed companies have made significant progress in diversifying industry experience and domain expertise on their boards. The proportion of companies with board members representing five or more different domain-knowledge areas increased from 14% in 2020 to 29% in 2025. Similarly, boards with five or more different industry-expertise types rose from 15% in 2020 to 33% in 2025.
Regional Comparison and Legislation
Hong Kong has implemented more stringent requirements, mandating listed companies to appoint at least one director of a different gender by the end of 2024. Malaysia has also set quotas, requiring at least one woman on the board.
In contrast, many Southeast Asian countries, including Singapore, do not have legal requirements or quotas for women on boards. Instead, they rely on voluntary targets and disclosure requirements.
Challenges and Future Outlook
Despite progress, challenges remain, particularly for small-cap and Catalist-listed companies in Singapore. The emphasis on cognitive diversity – ensuring a mix of thought, perspectives, and experiences – is growing, as it is crucial for enhancing boardroom discussions and decision-making quality.
As Asian companies continue to respond to evolving business challenges, the trend towards greater board diversity is expected to accelerate. However, creating inclusive board cultures where diverse opinions can thrive remains a key area for improvement.
In conclusion, while significant progress has been made in board diversity across Asian listed companies, particularly in gender representation and industry expertise, there is still room for improvement in areas such as cultural diversity and cognitive diversity. Continued focus on these aspects will be crucial for enhancing corporate governance and decision-making in the years to come.
References:
- Singapore Board Diversity Index 2025
- Council for Board Diversity Report 2024
- Southeast Asian Corporate Governance Report 2023
- Hong Kong Stock Exchange Listing Rules 2024
- Malaysian Code on Corporate Governance 2025
