SINGAPORE - The issue of what exactly makes up presidential hopeful George Goh’s company shareholders’ equity – as well as Ossia International’s repeated attempts to exit the Singapore Exchange Securities Trading (SGX-ST) watch list – raises questions over whether he qualifies to join the race, said political observers.

On Tuesday, Mr Goh, who is group executive chairman of Ossia International, was at the Elections Department (ELD) with his family and supporters to pick up an application form for a certificate of eligibility.

The 63-year-old is the second person to announce his intention to run for the Singapore presidency. Last Thurday, Senior Minister Tharman Shanmugaratnam, 66, said he was stepping down from his positions in government and leaving the People’s Action Party on July 7 to contest in the election.

Mr Goh told the media that he has put together a team, which includes his auditor and accountant. He said: “I believe I am qualified.”

Meeting private-sector requirement

In order to meet the private-sector service requirement, a potential candidate must have served as chief executive of a company for at least three years. During this time, the company must, on average, have at least $500 million in shareholders’ equity, and made a profit after tax throughout.

According to market data from The Wall Street Journal, Ossia International, which distributes and retails consumer products, averaged about $50 million in shareholders’ equity from 2021 to 2023.

Mr Goh’s press statement on Monday said that he has owned more than 100 companies over the past four decades, including five which he listed on the stock exchanges of Singapore and the United Kingdom. He also acquired two other companies, which were publicly listed as well.

In all, they have a collective market capitalisation value of $3.15 billion, read the statement.

When Mr Goh spoke to the media at the ELD on Tuesday, he said he would submit the number of companies he founded and incorporated, as well as those of which he is a shareholder or a founding member, to the Presidential Elections Committee (PEC). He did not give any other details.

However, law academics Eugene Tan, who is at the Singapore Management University (SMU), and Kevin Tan, who is from the National University of Singapore (NUS), suggested that Mr Goh may use the “private-sector deliberative track” to prove his eligibility.

Under Article 19(4)(b) of the Constitution, the PEC must be satisfied that the candidate has the experience and ability – having regard to the nature of the office, the size and complexity of the private-sector organisation, and the person’s performance in the office – that is comparable to a chief executive of a company with shareholders’ equity of at least $500 million or more, among other factors.

It must also be satisfied, “having regard to any other factors it sees fit to consider”, that the person has the experience and ability to effectively carry out the functions and duties of the office of president.

NUS’ Adjunct Professor Kevin Tan noted Mr Goh’s businessman background, saying it would not be unusual for him to head multiple companies with a collective worth that could be over $500 million.

“There is no reason why he can’t combine a number of companies that make up $500 million in shareholders’ equity, provided that he has been running them simultaneously for the last three years at least,” said Prof Tan.

Dr Mustafa Izzuddin, senior international affairs analyst at Solaris Strategies Singapore, said the eligibility decision lies with the PEC, whose members “can exercise collective discretion on the criteria in place”.

One reason for the committee to allow Mr Goh to run, he said, would be the sentiment among some Singaporeans that a walkover should be avoided.

“As there is domestic appetite for a presidential election, the chances of him getting the certificate of eligibility may be greater. But it all depends ultimately on the committee,” added Dr Mustafa.

However, Singapore University of Social Sciences (SUSS) law lecturer Ben Chester Cheong said it may still be difficult for Mr Goh to fulfil the requirements.

He said: “Regarding his other portfolio companies, the requirement is quite clear that it needs to be a person who is the most senior executive. One would assume holding a co-founder role or being a majority shareholder alone is insufficient, if it is not in a senior executive capacity that is equivalent to CEO.”

Watch list and offshore leaks database

A December 2022 report by The Business Times stated that Ossia International had applied for a third time extension to exit the SGX-ST watch list.

The Singapore-based distributor and retailer of consumer goods had not had an average daily market capitalisation of $40 million or more over the last six months up till then. The new deadline is Dec 4, 2023.

NUS’ Prof Tan said the prospect of a company being delisted does not in itself “mean anything bad”.

“The $40 million minimum guideline is just a requirement that the SGX-ST has (to use) to decide whether or not to keep (the company) on the exchange,” he added.

“It just means that Ossia may not look like an actively traded company, and maybe it is better to delist it.”

Based on an online search, Mr Goh’s name is in a 2013 offshore leaks database by the International Consortium of Investigative Journalists, which disclosed details of some 130,000 offshore accounts.

It listed him as a director or shareholder of several companies in the jurisdiction of the British Virgin Islands. Some of the companies were defunct or undergoing deregistration as at 2010, which is when its information on Mr Goh was last updated.

Dr Mustafa said these issues may not necessarily hurt Mr Goh’s chances of being considered, given that listing or delisting on the stock exchange, or having offshore accounts, is “part and parcel” of the ups and downs of running an international business.

“If these were indeed contentious issues, he would likely not have been appointed a non-resident ambassador to a foreign country,” noted Dr Mustafa.

However, SUSS’ Mr Cheong noted that should there be any negative publicity surrounding any candidate, the PEC could take the view that he or she does not meet the requirement of being “a person of integrity, good character or reputation”.

Tharman versus Goh

Should Mr Goh qualify and face off against Mr Tharman, some observers say the former’s humble beginnings could boost his standing.

SMU’s Associate Professor Eugene Tan said Mr Goh’s rags-to-riches story and his community contributions exemplify the Singapore success story. But he said Mr Tharman remains the candidate to beat, as the Senior Minister has “strong mass appeal” and is a seasoned campaigner. Meanwhile, Mr Goh is relatively less well-known and needs to build trust with voters.

He added: “Mr Goh has a mountain to climb. If he is cleared to run, it promises to be exciting hustings.”