Asia-Pacific Strategic Investments Limited - Annual Report 2021

Corporate Governance Report

Executive director do not receive director’s fees. The remuneration policy for executive director and key management personnel consists of fixed cash component and an annual variable component. The fixed component includes salary, pension fund contributions, annual wage supplement and other allowances. The variable component comprises bonus and profit sharing, payable on the achievement of corporate and individual performance targets. The Company has no long-term incentive schemes involving the offer of shares or granting of options as it considers that administering such scheme is not cost effective currently. The Company has entered into a service agreement (the “Service Agreement”) with the executive director, Dato’ Dr Choo Yeow Ming. The Service Agreement can be terminated by either party giving not less than three months’ notice and both parties have the option to pay salary in lieu of any required period of notice. Except for such payment in lieu of notice as provided for under the Service Agreement, no compensation or damages are payable by the Company to Dato’ Dr Choo Yeow Ming in respect of his termination in accordance with the terms of the Service Agreement. The non-executive and independent directors do not have any service contracts. They are paid a basic fee and additional fees for serving on any of the committees. In determining the quantum of such fees, factors such as frequency of meetings, time spent and the responsibilities of the directors are taken into account. The total fees payable to directors are subject to approval by shareholders at the AGM of the Company. The current service agreement entered with the Executive Director is approved by the RC and it does not contain contractual provisions to allow the Company to reclaim incentive components of remuneration from executive director and key management personnel in exceptional circumstances such as misstatement of financial results, or misconduct resulting in financial loss to the Company. The executive director owes a fiduciary duty to the Company. The Company should be able to avail itself of remedies against the executive director in the event of such breaches of fiduciary duties. The RC may, if necessary in the future, consider the use of such contractual provisions as may be appropriate. Principle 8: The company is transparent on its remuneration policies, level and mix of remuneration, the procedure for setting remuneration, and the relationships between remuneration, performance and value creation. Notwithstanding Provision 8.1 of the Code, in view of competitive pressure for talent in the industry and confidentiality issues, the Board, on review, decided not to disclose the remuneration of the Company’s directors and key management personnel in dollar amounts. The breakdown, showing the level and mix of each individual director’s remuneration paid or payable in bands of S$250,000 for the financial year ended 30 June 2021 is as follows: Disclosure on Remuneration

Director Fees %

Annual Wage Supplement %

Fixed Salary %

Total %

Remuneration Band S$ 250,000 – 499,999

Name of Director

Dato’ Dr Choo Yeow Ming

92

8

-

100 100 100 100 100

Lum Moy Foong Dr Lam Lee G Chew Soo Lin Lien Kait Long

< 250,000 < 250,000 < 250,000 < 250,000

- - - -

- - - -

100 100 100 100

The Board believes that such disclosure is sufficient to enable shareholders to understand the Company’s remuneration policies for directors, and the relationship between remuneration and performance.

ASIA-PACIFIC STRATEGIC INVESTMENTS LIMITED

24