HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA

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HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
September 2017
IS CHARTERED ACCOUNTANT
  SEPTEM BER 20 17

                                                      SI N
                                                             GAP
                                                                   OR
                                                                        EC
                                                                           OR P
                                                                                OR A                          S
                                                                                    TE        AWARD

                              HONOURING EXCELLENCE IN CORPORATE GOVERNANCE

                          SECOND QUARTER REPORT                  THE GREAT                     KICK BACK
                            ON SOUTHEAST ASIA                ECONOMIC INVERSION                AND RELAX
                             Asia Strengthens While              How Balance Sheets         Holiday Ideas For That
                             Outlook Remains Steady          Have Been Tipped Upside Down   Well-Deserved Break
HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
IS Chartered
   Accountant
 Journal awarded
APEX Award 2017
HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
PRESIDENT’S MESSAGE

DRIVEN BY COMMITMENT,
OPEN TO OPPORTUNITIES
Dear members,
Financial advisor, lawyer, historian,    from notable members, with the            the latest developments. I would like
accountant and even soothsayer…          aim to inspire existing and future        to encourage you to keep on upgrading
they are all expected to undertake a     members. The segment also broadens        your know-how and skills. Where
myriad of roles in their professional    awareness of the multiple career          necessary, adapt and reinvent yourself
lives. But significantly, accountants    paths an ISCA membership offers.          so that you can stay relevant and be
are now looked upon for counsel in       In this issue, our award-winning          future-ready.
the more strategic areas of business,    members demonstrate that attitude is           Our future is shaped in large part by
over and above their traditional         as important as aptitude. They show       the young people of today. In June, ISCA
finance functions. This evolution is a   a deep commitment to continuous           launched a competition in search of the
positive development and it means        improvement – not only for themselves,    brightest young accounting professional
that accountants can provide value-      but also for the people they lead. And    aged 30 years and below to represent
added services to the workplace, and     in this dynamic age, they advocate        ISCA at the One Young World (OYW)
I urge members to take advantage of      adaptability, flexibility and open-       Summit 2017. The competition was
this momentum. Continue to develop       mindedness towards opportunities          intense, attracting a number of highly-
yourselves so that when the time is      emerging from technological disruption    qualified young people who impressed
right, you are ready to step up          and an evolving business environment.     the judges with their passion and
to assume additional responsibilities.   Find out what motivates them, and         profiles. Meet the finalists and eventual
This month’s cover story features        their perspectives on life and work.      winner – Muhammad Ashiq Chu. Soon,
three ISCA members who have moved            Technology will soon be an            he will be sharing with us his OYW
up the ranks to assume leadership        integral part of our lives as Singapore   Summit experiences.
positions, and won recognition for       moves towards being a Smart                    The accounting profession
their achievements.                      Nation. According to PM Lee Hsien         is a demanding one, so be
    At the Singapore Corporate Awards    Loong at this year’s National Day         kind to yourself – take
2017, Chua Sock Koong received the       Rally, being a Smart Nation means         time out to rejuvenate
Best CEO Award. She is the first woman   “taking full advantage of IT” to create   and restore for the
to win this award and the only person    opportunities, enhance productivity       future. Have a look
to have bagged both the Best CEO and     and make life more convenient. The        at our Taking Flight
Best CFO Awards in the event’s 12-year   Institute, too, has committed to our      segment which
history. (Ms Chua also took home the     own “smart” journey for members           features holiday ideas
Outstanding Professional Accountant      and the profession. For some time         for destinations near
Award at the Singapore Accountancy       now, through various ISCA initiatives     and far – ideal for
Awards 2016.) Please join me in          spanning CPE courses, seminars,           a well-deserved
congratulating Ms Chua and the other     e-Services Portal and other resources     break. Enjoy!
two award recipients, Darren Tan, who    including this journal, we have shared
is now a Council Member of ISCA,         different ways that members can
and Foo Ai Huey, who each won the        leverage on IT to work smarter and
Best CFO Award.                          enhance learning. We have also kept
    We introduced the Member             members updated on the potential          Gerard Ee
Profile segment two years ago to         impact IT has on the profession, and      FCA (Singapore)
capture the sharing of experiences       emphasised the need to keep up with       president@isca.org.sg
HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
CONTENTS
     FOCUS
                                                                  sep
                                                                  2017

                                                                                   Singapore Corporate
                                                                                                        20
                                                                                          Awards 2017

20 Singapore Corporate
Awards 2017                             IN TUNE
Three ISCA members received
top honours for exemplary           5    Only 37% of SME Debts Paid on Time
corporate governance practices           in Q2, the Lowest Level in Two Years
for listed companies in Singapore   6    Purpose, Not Profit: Business Leaders’
                                         Key to Success amid Turbulent
                                         Global Economy
                                    8    Salary Counteroffers Ineffective in
                                         Retaining Staff
                                    9    Managing Change and Transformation
                                         is Key to Sustaining Family Businesses
                                    10   National Day Awards 2017
                                    12   ISCA-Temasek Foundation

                               34        International Public Administration
                                         Programme in Accountancy
                                                                                                                    16
34 Kick Back and Relax                                                            14   ISCA Sustainability Reporting
Holiday ideas for you to recharge                                                      Roundtable for CFOs
and get a genuine, well-deserved                                                  14   ASC-ISCA Roundtable on
break                                                                                  IASB’s Discussion Paper:
                                                                                       Principles of Disclosure
38 One Young World                                                                16   ISCA Breakfast Talk: The Future
Summit 2017                                                                            Economy: Preparing Accountants
Revealed: ISCA’s ambassador to                                                         in the Global Game of Change
                                                                                  18
                                                                        12
the Summit in October, and other                                                       Digging Deeper into Tax for Members
competition finalists                                                             18   ISCA Calendar of Events

 2   IS Chartered Accountant
HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
IS CHARTERED ACCOUNTANT

                                                                      COUNCIL MEMBERS                    EDITORIAL TEAM
 VIEWPOINT                                                            Advisor Teo Ser Luck
                                                                      President Gerard Ee
                                                                                                         Editor
                                                                                                         Jennifer Toh
                                                                      Vice President Kon Yin Tong        Email: editor@isca.org.sg
                                                                      Treasurer Vincent Lim              Deputy Editor
                                                                      Members Yvonne Chan                Pauline Chee
                                                                      Mei Chuen, Chan Yoke Kai,          Assistant Editor
                                                                      Cheng Qiang, Frankie Chia,         Chia Suat Ning
                                                                      Michael Chin, Choo Teck Min,       Members
                                                                      Balasubramaniam Janamanchi,        Ang Soon Lii, Sheryl Hon,
                                                                      Paul Lee Seng Meng, Lee Shi Ruh,   Kang Wai Geat, Joelle Loy,
                                                                      Lee Wai Fai, Lim Kexin, Max Loh    Perrine Oh, Derek Tang,
                                                                      Khum Whai, Anthony Mallek, Sim     Anne Tay, Ellen Wong,
                                                                      Hwee Cher, Tam Chee Chong,         Yap Lu Ling
                                                                      Darren Tan Siew Peng, Kelvin Tan
                                                                      Wee Peng, Roger Tay Puay Cheng     PUBLISHER
                                                                                                         Institute of Singapore
                                                                      PRINCIPAL OFFICERS                 Chartered Accountants
                                                                      Chief Executive Officer            60 Cecil Street, ISCA House,
                                                                      Lee Fook Chiew                     Singapore 049709
                                                                      Executive Director

                                                             42
                                                                      (Corporate Services)               Tel: (65) 6749-8060
                                                                      Janet Tan                          Fax: (65) 6749-8061
                                                                      Director                           Email: isca@isca.org.sg
                                                                      (Communications, Member            Website: www.isca.org.sg
                                                                      Services & Marketing)
42 The Great Economic                                                 Jennifer Toh
                                                                      Director
                                                                                                         PUBLISHING & DESIGN CONSULTANT
Inversion (Part 1)                                                    (Strategy, Global Alliances,
Intangible assets are important and                                   Insights & Intelligence)
                                                                      Joyce Tang
should be on the board’s agenda;                                      Director
here’s why                                                            (Audit Quality & Standards
                                                                      Development, Continuing            MCI(P) 030/05/2017
                                                                      Professional Education,            PPS 709/09/2012 (022807)
46 Second Quarter                                                     and Industry Support)
                                                                      Fann Kor
                                                                                                         ISSN 2010-1864

Report on Southeast Asia                                              Director                           ADVERTISING
A positive first quarter performance                                  (Pathways Development              Multinine Corporation
                                                                      & Qualifications)                  Pte Ltd
driven by accelerating growth in                                      Soh Suat Lay                       Trevor Teh
Malaysia and Thailand paves the                                       Deputy Director                    Hp: 9829-6905

                                                               46
                                                                      (Corporate Reporting               Email:
way for the region’s steady growth                                    & Ethics)                          trevor@multi9.com.sg
in the months ahead                                                   Lim Ju May
                                                                                                         PRINTING COMPANY
                                                                      EDITORIAL ADVISORY PANEL           Times Printers Private Limited
                                                                      Chairman
 TECHNICAL EXCELLENCE                                                 Gerard Ee
                                                                      Deputy Chairman
                                                                      Paul Lee Seng Meng
                                                                      Members
                                       50 Technical Highlights        Foo See Liang,
                                                                      Edmund Keung Ching Tung,
                                                                      Koh Wei Chern, Lee Kin Wai,
                                       52 The Finesse of              Luke Lim, Phua Yung Keat,
                                                                      Patrick Tan Teck Keong
                                       TP Functional Analysis
                                       An SIATP session delves deep   The views expressed in IS Chartered Accountant
                                       into functional analysis in    journal do not necessarily represent those of the
                                                                      Institute of Singapore Chartered Accountants (ISCA).
                                       transfer pricing               No responsibility is accepted by the Institute or its staff
                                                                      for the accuracy of any statement, opinion or advice
                                                                      contained in the text or advertisements, and readers are
                                        FIRST LOOK                    advised to rely on their own judgement or enquiries, and

                          50
                                                                      to consult their own advisors in making any decisions
                                                                      which would affect their interests. No part of this
                                       56 Books & Quiz                publication may be reproduced, stored in a retrieval
                                                                      system, or transmitted in any form or by any means,
                                                                      electronic, mechanical, photocopying, recording or
                                                                      otherwise, without the prior written permission of ISCA.
                                                                      IS Chartered Accountant journal welcomes contributions
                                                                      and letters. These may be edited for clarity or length.
                                                                      Articles, letters and requests to reproduce articles
                                                                      appearing in IS Chartered Accountant journal should
                                                                      be sent to Editor, IS Chartered Accountant, Institute of
                                                                      Singapore Chartered Accountants, 60 Cecil Street, ISCA
                                                                      House, Singapore 049709 or email: editor@isca.org.sg.

                                                                                       Download the
                                                                              IS Chartered Accountant journal
                                                                               on your smart phone or tablet.

                                                             52                  To read the journal on your computer,
                                                                                 simply go to http://isca.org.sg/journal

                                                                                                              September 2017            3
HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
IN TUNE
                     INDUSTRY NEWS

                     Only 37% of SME Debts                                                          90 days remained at 14% in Q2, the
                                                                                                    same level as in Q1.

                     Paid on Time in Q2, the
                                                                                                         DP Info General Manager Sonny
                                                                                                    Tan said the most likely explanation

                     Lowest Level in Two Years
                                                                                                    for the change in payment behaviour
                                                                                                    is that SMEs are managing their cash
                                                                                                    flow by prioritising which debts to

                     T
                               he percentage of SME debts   found that the proportion of SME        pay first. They could also be setting
                               paid on time fell to just    debts paid on time fell from 52% in     aside money for other things, such
                               37% in the second quarter    1Q2017 to 37% in 2Q2017 – a drop        as “funding growth opportunities
                               of 2017 – the lowest level   of 15 percentage points. This is the    in anticipation of greater demand
                     in two years. This change in SME       lowest level since 2Q2015, when the     in the second half of the year”. The
                     payment behaviour was revealed         percentage of on-time payments          most recent SBF-DP SME Index
                     in new research released by DP         was 35%.                                had revealed that SMEs expect an
                     Information Group (DP Info), part of       While the proportion of unpaid      improvement in their sales in the
PHOTO SHUTTERSTOCK

                     the Experian group of companies.       debts rose during the quarter, the      second half of 2017. They are also
                         The research, which analyses       percentage of severely delinquent       keen to pursue business expansion
                     the payment patterns of more than      debts – those still unpaid 90 days      by increasing their market share,
                     120,000 companies in Singapore         after they fall due – did not change.   targeting new markets or introducing
                     during the second quarter of 2017,     The percentage of debts unpaid after    new products and services.

                        A Service and Quality You Can Count On

                                              10 Anson Road #12-07 International Plaza
                                                          Singapore 079903
                                              Tel : +65 6220 9885 Fax: +65 6224 9885
                                                       Email: general@entrust.sg

                                                            www.entrust.sg                                             September 2017   5
HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
IN TUNE
INDUSTRY NEWS

A                                        Purpose, Not Profit:
            majority (73%) of business
            leader respondents

                                         Business Leaders’ Key to
            believe in the value
            of a strong corporate
purpose, and only a minority (15%)
say their company’s main purpose
is to maximise shareholder value,        Success amid Turbulent
                                         Global Economy
according to an EY report, “How
can purpose reveal a path through
disruption? Mapping the journey
from rhetoric to reality”.
     Based on a survey of 1,470 global   TANGIBLE BENEFITS                         LEADERS NEED TO TURN
leaders representing companies           The survey found that 97% of              THEIR PURPOSE RHETORIC
across various industries in             companies that deeply integrated a        INTO BUSINESS REALITY
developed and emerging markets           broader sense of purpose into their       In order to help businesses
around the world, the respondents        DNA reported a good or great deal of      understand the pathway to turning
include 500 businesses with annual       incremental value from doing so.          the purpose rhetoric into reality, the
revenues of US$2.5 billion or more.          Companies that have deeply            report identified four steps that can
     The report revealed that            embedded an aspirational and human-       help every organisation reach their
purpose means different things to        centric definition of purpose cited       purpose goals:
different companies. When asked          specific ways in which embedding          1) Clearly articulate a purpose
to characterise their organisation’s     their purpose across activities creates       that responds to the needs
purpose, 33% of respondents cited        value. Fifty-two percent said that it         of their stakeholders and
bringing value to customers; 15% of      helps build customer loyalty; 51%             is grounded in what an
global organisations said boosting       reported that it preserves brand value        organisation does;
their share price, and 11% cited         and reputation; 42% cited that it helps   2) Embed purpose into their
bringing value to their employees,       them attract and retain staff, and            strategy and operations, and
all focusing on a single stakeholder     40% attributed the ability to develop         align their decision-making with
group. Others have a different           new and innovative products to the            that purpose;
conception – 40% of respondents          presence of purpose within                3) Constantly evaluate where they
said their organisation’s purpose        their business.                               are in their journey and what
is aimed at creating value for               According to Valerie Keller,              needs to change;
multiple stakeholders or offering an     Global Lead, EY Beacon Institute and      4) Accelerate the journey by placing
aspirational reason for being.           EY Global Markets, “Our research              purpose at the centre of their
     In addition, two-thirds of          shows the real advantages companies           culture and ensuring it is owned
executives (66%) were profoundly         gain when going on an authentic               by their people.
rethinking their organisations’          purpose journey. The data also busts
purpose as a result of the disrupted     the myth of purpose versus profit.             “All the disruption geopolitically,
environment, and 52% of those            Seventy-five percent of purposeful        economically and technologically
were moving in the direction of this     companies involved in our survey tell     is a catalyst for a new evolution
wider concept of purpose. Sixty-eight    us that the integration of purpose        in business. Those most able to
                                                                                                                              PHOTO SHUTTERSTOCK

percent of companies that broadly        creates value in the short term as well   thrive in this new world are focused
defined purpose and integrated it        as over the long run. They also report    on their impact on the humans
into their organisations said purpose    that being purposeful gives them          they touch – the customers, the
gave them the agility to innovate in     greater agility to innovate in the face   employees and the wider society,”
times of disruption.                     of disruption and uncertainty.”           said Ms Keller.

 6   IS Chartered Accountant
HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
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HONOURING EXCELLENCE IN CORPORATE GOVERNANCE - ISCA
IN TUNE
INDUSTRY NEWS

Salary Counteroffers
                                                                                                                         Cultural fit is the main driver
                                                                                                                    for 60% of CFOs who have made a
                                                                                                                    counteroffer as the employee fits in

Ineffective in                                                                                                      well with the company and team. More
                                                                                                                    than half (59%) cited the desire to

Retaining Staff
                                                                                                                    retain knowledge within the company
                                                                                                                    as one of the main reasons for making
                                                                                                                    a counteroffer, while 57% pointed
                                                                                                                    to the additional costs related to the

C
          ounteroffers are still                                    made a counteroffer indicated that              hiring, onboarding and the professional
          common practice in                                        the employee ended up leaving the               development process.
          Singapore companies                                       company – 20% indicated the staff                    “Not only are counteroffers
          despite their assumed                                     member stayed less than a year, 22%             ineffective in retaining employees
ineffectiveness in today’s competitive                              said the employee stayed for over a             for the long term, they can also set
employment market, according to                                     year, and 9% said they stayed fewer             a negative precedent for employers
independent research commissioned                                   than six months.                                as it gives an indication to staff that
by recruiter Robert Half. An                                             “Even though extending a                   threatening to resign is a successful
overwhelming majority (96%) of                                      counteroffer can be an immediate                way to receive a pay rise, all while
Singapore CFOs extend counteroffers,                                reaction to a top employee resigning,           creating rumours of favouritism
despite more than half (59%) of the                                 offering a financial incentive to remain        thereby undermining staff morale,”
same CFOs saying the employee                                       with the company is just delaying the           explained Mr Imbert-Bouchard, who
ended up leaving the company.                                       inevitable as oftentimes, the reason            suggested that a better approach
    Extending counteroffers appears                                 why they want to leave the company              is to have a blanket policy to not
to be common practice here, with                                    goes beyond purely financial reasons,”          extend counteroffers to resigning
some 30% of CFOs applying this                                      said Matthieu Imbert-Bouchard,                  employees as “it’s not an effective
practice “often”, 42% “sometimes”,                                  Managing Director, Robert Half                  nor a cost-saving staff retention
and 5% “always”. Around 18% say                                     Singapore. “Even if the counteroffer            measure”. A better approach may be
they “rarely” make a counteroffer,                                  is accepted, a higher salary does not           for employers to be more proactive
and merely 5% say they have                                         always equal better performance or              in their staff retention initiatives to
“never” extended one.                                               stronger loyalty. Employers would               minimise staff turnover. “Knowing
    However, further acknowledging                                  be better-placed to withhold a                  what drives staff members and taking
the ineffectiveness of counteroffers,                               counteroffer and immediately start the          appropriate measures, as well as
59% of business leaders who have                                    hiring process to replace them.”                regularly reviewing salaries, should be
                                                                                                                    key elements of any company’s staff
                                                                                                                    retention policy,” he added.
                 What are the main reasons for making a counteroffer?                                                    The annual study is developed
  Employee fits in well with the company and team                                                             60%   by Robert Half and was conducted
                                                                                                                    in January 2017 by an independent
  Desire to keep knowledge within the company                                                                 59%
                                                                                                                    research firm, surveying 100 Chief
  Additional costs related to the hiring, onboarding and professional development process                     57%   Financial Officers and Finance Directors
                                                                                                                    in Singapore. This survey is part of
                                                                                                                                                               PHOTOS SHUTTERSTOCK

  Smaller talent pool of skilled finance professionals                                                        42%
                                                                                                                    the international workplace survey,
  Employee turnover negatively affects team morale                                                            21%   a questionnaire about job trends,
                                                                                                                    talent management and trends in
  Cost to replace a specific skill set would be too high                                                      14%
                                                                                                                    the workplace.
Source: Independent survey commissioned by Robert Half among 95 Singaporean CFOs (multiple answers allowed)

 8     IS Chartered Accountant
Managing Change
                                                             and Transformation
                                                             isKey to Sustaining
                                                             Family Businesses

T
          he second edition of the        technologies, dynamic shifts towards     was the importance of embracing change
          Family Business Forum           digitalisation, or even changes in       while preserving family values, even as
          titled “Managing Change         customer expectations… Companies         the next generation of successors focuses
          in Today’s Uncertain            that do not recognise and respond to     on the role of technology and innovation
Environment” brought together             change in time will be left behind,”     to help their businesses transform.
diverse family businesses to share        said SBF Chairman S.S. Teo in his        Panellists also shared that recruiting
experiences in managing transitions,      welcome address. “Alternatively,         talent from outside the family circle is
and the importance of reinventing         companies that see disruption as an      essential to expand and professionalise
themselves to stay relevant. Organised    opportunity can achieve accelerated      their businesses.
by the Singapore Business Federation      growth or develop new growth                  So while the next generation is in
(SBF) on August 1, participants were in   strategies… Family values, culture and   an advantageous position to adopt
unison that they would need to reinvent   traditions are added dimensions that     technology and best practices for change,
themselves to continue their legacy.      family businesses have to manage in      they also shoulder the responsibility to
    “Almost every business today          their transformation journey.”           live up to expectations to inspire staff to
faces some form of uncertainty and            Among the key themes that            transform and lead their businesses into
disruption, be it in the form of new      emerged from the plenary discussions     sustainable growth enterprises.

                                                                                                           September 2017   9
NATIONAL DAY AWARDS 2017
The Singapore National Day Awards are a means of recognising various forms of merit and
service to Singapore. This year, a total of 4,322 individuals in 21 award categories received
National Day Honours. ISCA is proud to announce that 45 of our members were conferred
awards for their outstanding service and merit to Singapore.
   On behalf of the Institute, ISCA President Gerard Ee and the management would like to
extend their heartfelt congratulations to our award recipients.

 The Meritorious Service Medal                             The Commendation Medal

MR PHILLIP TAN ENG SEONG                                  MR KOH TECK HUA
Vice President, National Council of Social Service        Senior Assistant Director Group 2
Chairman, Community Chest                                 Auditor-General’s Office

 The Public Service Star                                  MDM NG PECK HUI
                                                          Assistant Director, Finance
                                                          Curriculum Planning & Development Division 2
DR ERNEST KAN YAW KIONG JP, PBM                           Ministry of Education
Chairman
Punggol West CCC
                                                          MS CHRISTY CHUNG CHAI FANG
                                                          Head
MR ONG YEW HUAT PBM                                       Office of Internships & Careers
Chairman                                                  Ngee Ann Polytechnic
National Heritage Board
                                                          MS LEE PUAY HOON
MDM QUEK BIN HWEE PBM                                     Tax Specialist (Accredited)
President                                                 Corporate Tax Division
Singapore Anti-Narcotics Association Board of Directors   Inland Revenue Authority of Singapore

 The Public Administration Medal (Gold)                   MR TAN KEK ANN
                                                          Manager
DR ANG HAK SENG                                           Individual Income Tax Division
                                                          Inland Revenue Authority of Singapore
Deputy Secretary, Commissioner of Charities
Executive Director (Registry of Co-operative Societies)
Ministry of Culture, Community and Youth
				                                                      MS ANGELA LIM SEOW HWEE
                                                          Deputy Director
 The Public Administration Medal (Silver)                 Finance & Accounting
                                                          Khoo Teck Puat Hospital
MS ANNA CHENG SOK ENG                                     Alexandra Health System
Director
Internal Audit Department
Ministry of Defence
                                                          MDM LOO SWEE CHENG
                                                          General Manager
                                                          National Skin Centre
MS JEANNE LIEW                                            National Healthcare Group
Principal & Chief Executive Officer
Nanyang Polytechnic

                                                          MS KOH AH CHIN
                                                          Deputy Director (Budget/Expenditure)
                                                          Finance and Procurement
 The Public Administration Medal (Bronze)                 Corporate Development & Services
                                                          National Parks Board
MS LOY WEE ING
Senior Assistant Director (Registry and Procurement)
Corporate Development Division                            MR JAMES FONG LAI CHIN
Ministry of Communications and Information                Senior Assistant Director
                                                          Finance Division
                                                          Sentosa Development Corporation
MR GARY PAN SHAN CHI
Associate Professor of Accounting (Education)
School of Accountancy
Singapore Management University

10 IS Chartered Accountant
The Public Service Medal
MR MELVIN TEO TIAN SING                     MR CHEN YEE LENG
Chairman                                    Deputy Director/Procurement
Kampong Kembangan CCMC                      Corporate Procurement
                                            Temasek Polytechnic
MR R. DHINAKARAN
Vice Chairman                               MRS CHRISTINE QUE CHEONG
Hindu Endowments Board                      Senior Lecturer
                                            School of Business
                                            Temasek Polytechnic
MR ONG CHAO CHOON
Board Member
National Environment Agency                 MISS CHEE VOON TING
				                                        Manager
                                            Corporate Services Division
 The Efficiency Medal                       Inland Revenue Authority of Singapore

MDM PAULINE HENG WEN ENG                    MISS NG LEE PENG
Senior Executive (Internal Audit)
Group Internal Audit Division               Manager
Singapore Totalisator Board                 Accounting and Processing Division
                                            Inland Revenue Authority of Singapore

MS LYNETTE LIN YUEFANG                      MDM JANET YIP SAU MUI
Senior Executive, Finance Department
Corporate Services & Development Division   Senior Manager, Levies & Grants Department
National Environment Agency                 Agency & Self-Employed Group
				                                        Central Provident Fund Board

 The Long Service Medal                     MDM CHNG LAY MUI
                                            Principal Internal Auditor
MRS SHYAMALA KRISHNAMOORTHY                 Information Systems Audit Department
Senior Assistant Director, Group 5          Internal Audit Group
Auditor-General’s Office                    Housing & Development Board

MS LAU SOO CHING                            MDM KHOO HWEE HUANG
Group Director, Group 1b                    Principal Internal Auditor
Auditor-General’s Office                    Information Systems Audit Department
                                            Internal Audit Group
MDM EILEEN NG PECK EE                       Housing & Development Board
Deputy Director, Group 1a
Auditor-General’s Office                    MS NANCY TAN HOCK BOON
                                            Executive Internal Audit Manager
MDM NG LIP NIN                              Internal Audit
                                            Urban Redevelopment Authority
Group Director, Group 5
Auditor-General’s Office
                                            MS KAREN CHIA LI CHENG
MDM SENG SWEE EE                            Director, Audit
                                            Agency for Science, Technology and Research
Senior Assistant Director, Group 2
Auditor-General’s Office
                                            MS LIM CHEO HWANG
MDM SALLY LEE SIEW KHENG                    Assistant Head, Finance
                                            Agency for Science, Technology and Research
Officer, Accounts Unit
Finance Department
National Institute of Education             MR MELVIN TAN KHAI HENG
                                            Senior Manager
MR LIM SWEE THIAM                           Finance & Administration Department
                                            Corporate Services Group
Senior Accountant
Finance Department                          Energy Market Authority of Singapore
Nanyang Polytechnic
                                            MS LUI YOKE SAN
MR CHOO CHENG CHONG                         Senior Deputy Director, Finance
                                            Corporate Development Division
Senior Manager
Department of Finance                       Ministry of Transport
Singapore Polytechnic
                                            MS GOH KAH LENG
MR NG ENG POH                               Deputy Director, Finance Department
                                            Monetary Authority of Singapore
Academic Mentor
SP Business School
Singapore Polytechnic
                                                                                     September 2017   11
IN TUNE
ISCA NEWS

                                                               Delegate visits to IRAS and ACRA

ISCA-Temasek                                                                               ISCA CEO Lee Fook Chiew (first from left);
                                                                                       TF Intl Chief Executive Benedict Cheong (fifth

Foundation International
                                                                                            from right) and ISCA President Gerard Ee
                                                                                          (fourth from right) with the Lao delegation

Public Administration    WHAT PARTICIPANTS SAY …

Programme in Accountancy                                                                                    First of all, I would like to
                                                                                                             thank ISCA so much for
                                                                                                             organising this excellent

I
                                                                                                  training. The trainers’ sharing was
        SCA and Temasek Foundation          stable economy with a foundation of a
                                                                                                  candid and I learnt about the
        International (TF Intl) hosted 10   good and robust financial system will                 importance of public policy and
        senior Lao government officials     also enable the Lao government to                     Singapore’s tax policies. This spurs
        for a five-day leadership course    attract quality investments.                          Laos to improve our accounting
in Singapore from July 17 to 21.                Against this backdrop, the                        standards and legal framework in
     ISCA is privileged to be given         leadership course covered modules                     order to collect tax effectively.”
                                                                                                  MS BOUNSAVANH VILAYSONE,
the opportunity to contribute our           such as Principles of Accounting,                     Deputy of Division, Tax Department,
expertise and experience towards            Corporate Governance, Tax Mechanism                   Lao Ministry of Finance
the development of the accountancy          and Public Sector Financial
                                                                                                             We would like to thank
sector in Laos. This course is an           Management. There were also visits to                            ISCA’s team as well as
integral part of the capability-building    Inland Revenue Authority of Singapore                            Temasek Foundation
objective of accountants in Laos,           (IRAS) and Accounting and Corporate                   International for organising the
and is in line with the Memorandum          Regulatory Authority (ACRA) to                        fruitful leadership training. The
of Understanding signed between             understand the taxation mechanism                     course and visits to IRAS and
                                                                                                  ACRA provided us insights on the
the Institute and the Lao Chamber           and regulatory instruments in
                                                                                                  importance of having the
of Professional Accountants and             promoting audit quality respectively.                 involvement of different
Auditors (LCPAA) in October 2016.               TF Intl places strong focus on                    stakeholders for sustainable
     This leadership course is a            outcomes with multiplier effect,                      development. We look forward to
tripartite partnership among ISCA,          through the transfer of learning by                   adapting Singapore’s philosophies
LCPAA together with the Lao                 leaders and trainers to their peers, to               and best practices to the Lao
                                                                                                  context so as to strengthen our
Ministry of Finance, and TF Intl as the     bring about sustained improvements
                                                                                                  legal framework and public financial
supporting partner.                         in their communities. Hence, the                      management to further improve
     The improvement in the quality of      programme heralds the start of more                   the lives of the Lao people. It will
financial reporting in Laos will increase   to come in the near future, where the                 also facilitate regional integration
the credibility of financial information    leaders will then transfer what they                  with ASEAN member states.”
                                                                                                  DR PHIRANY PHISSAMAY,
for investors, and would contribute         have learnt and experienced here to                   Deputy Director-General, Accounting
significantly to economic growth. A         their colleagues back in Laos.                        Department, Lao Ministry of Finance

12   IS Chartered Accountant
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IN TUNE
ISCA NEWS

ISCA Sustainability
                                                                                          (From left) Lee Hui Gek, CFO, SP Corporation
                                                                                        Limited; Tan Sze Yen, Senior Vice President
                                                                                        Group Accounting Policy, DBS Bank Ltd;

Reporting Roundtable
                                                                                        Esther An, Chief Sustainability Officer,
                                                                                        City Development Limited; Tan Kiang Kerng,
                                                                                        CFO, Baker Technology Limited; Lim Ju May,

for CFOs
                                                                                        Deputy Director, Corporate Reporting & Ethics
                                                                                        (CoRE), ISCA, and Kevin Yong, Senior Manager,
                                                                                        CoRE, ISCA

T
          he Institute held the “ISCA        while others have just embarked on their   spearheading/driving SR.
          Sustainability Reporting (SR)      SR journey.                                    The roundtable was a platform for
          Roundtable: Chief Financial            The participants, who included         the dynamic exchange of perspectives
          Officers for SR” on July 28,       representatives from Baker Technology      among participants, where those with
bringing together a diverse mix of           Limited, City Developments Limited,        more SR experience shared pointers
organisations at different phases of         DBS Bank Ltd, Low Keng Huat (Singapore)    on how they successfully implemented
SR implementation. Some organisations        Limited, Maritime and Port Authority of    SR within their organisations,
have implemented SR for many years,          Singapore and SP Corporation Limited,      thus creating value for both their
some have a couple of years of experience,   discussed the role played by CFOs in       organisations and themselves.

ASC-ISCA Roundtable on
IASB’s Discussion Paper:
Principles of Disclosure

T
            he objective of financial        in March 2017 to seek stakeholder
            reporting is to provide          views on these disclosure issues and
            financial information that is    approaches to address them.
            useful to investors in making        On July 24, ISCA jointly held
decisions. It is thus important that such    a roundtable with the Accounting
information is effectively communicated.     Standards Council (ASC) to solicit
     At present, valuable information        feedback for this DP. Participants,
is often hidden due to “boiler-plate”        including preparers, users, auditors,
disclosures; also, financial information     the regulator and academia, had a
is often poorly presented. This makes it     lively discussion on existing disclosure
difficult and time-consuming for investors   issues and various approaches proposed
to identify the most useful information      in the DP.
amid all the information disclosed.              An interesting comment centred
     The Principles of Disclosures           on the “ability” of financial statements   and effective communication of
project was initiated by IASB to identify    to tell a “complete story” – an approach   financial information. Participants’
disclosure issues and develop new or         that is ideal in theory but may not be     feedback will be considered for
clarify existing disclosure principles.      feasible in practice due to resource       inclusion in the Institute’s comment
IASB issued a Discussion Paper (DP)          constraints and the need for timely        letter to IASB.

14   IS Chartered Accountant
Platinum Sponsor:   Gold Sponsors:   Strategic Partners:   Supporting Partners:
IN TUNE
ISCA NEWS
                                                               Enthusiastic participants posing with speaker Sarjit Singh
                                                               as he received a token of appreciation
ISCA BREAKFAST TALK
The Future Economy: Preparing Accountants
in the Global Game of Change                                                                                                 Finance

T
           he Committee on the Future           reinforced how accountants contribute                                       Projects &
           Economy (CFE) was convened           to Singapore’s vision to be a trusted                     Dispute        Infrastructure   Business
                                                                                                         Resolution       Corporations    Valuation
           in 2016 to review Singapore’s        global exchange for financing, brokering,       LEGAL                                                 ACCOUNTING
                                                                                                        Intellectual     Restructuring     Internal
           economic strategies. The             structuring, and dispute resolution for                   Property                          Audit
report, which was submitted in early 2017,      international transactions. He then shared                             Risk Management
                                                                                                                          & Corporate
contained a number of recommendations           nine high-growth areas which would help                                    Governance
for the legal and acounting services sectors.   drive demand for Singapore’s legal and
     Ardent Associates Executive Chairman       accounting services, with emphasis on
                                                                                                 Nine high-growth practice areas for the region which can help
Sarjit Singh, who served on the CFE             business valuation and internal audit.
                                                                                                  drive demand for Singapore’s legal and accounting services
legal and accounting services working               Mr Singh also said that in addition
group, brought his deep knowledge of the        to the core attributes that accountants         to anticipate new trends and provide
recommendations to the ISCA Breakfast Talk      possess, clients would value skill sets         integrated cost-effective solutions. More
on August 17. During the interactive            such as multi-jurisdictional capabilities,      information on the session can be found at
session with over 80 participants, he           strong industry knowledge, and the ability      https://www.isca.org.sg/documents/bt1708.

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16   IS Chartered Accountant
SUSS SCHOOL OF BUSINESS
At Singapore University of Social Sciences (formerly SIM University), we equip students with relevant
business knowledge, real world skills and social awareness so that they will lead with a heart. The School
of Business offers degree programmes in Accountancy, Business Analytics, Business, Finance, Logistics
and Supply Chain Management, Marketing, Security Studies and Visual Communication with
Business. In addition, we also offer graduate programmes: Master of Business Administration, Master
in Management [Urban Transportation], Master of IP and Innovation Management, Doctor of
Business Administration in Management and Doctor of Business Administration in Finance.

BACHELOR OF      ACCOUNTANCY
Our Bachelor of Accountancy programme’s
curriculum provides comprehensive                            SUSS’s Bachelor of Accountancy is
accounting knowledge and relevant                            recognised by ACRA as a qualification for
industry skills to students who want to                      registering public accountants under the
                                                             Accountants Act. It has been granted
pursue a professional accountancy degree.
                                                             accreditation by SAC for direct entry to
The programme provides training in                           the Singapore Chartered Accountant
general business skills, accounting,                         Qualification Professional Examinations.
taxation, assurance, attestation, analytics
                                                             Graduates also enjoy exemptions from
and strategy. The programme is also
                                                             ACCA and CIMA professional
mapped to SCAQ and other professional
                                                             examinations.
examination requirements.

All our full time accountancy students go
through a substantive 6 months
attachment at approved ATOs.
For more information on the work attachment , please contact:
Office of Career Development at careerdev@suss.edu.sg

                                                                         Find out more at suss.edu.sg/sbiz
IN TUNE
 ISCA NEWS
                                                                                                           Accredited Tax Advisor (Income Tax)
                                                                                                         Rohan Solapurkar dissected key tax issues and

 Digging Deeper into                                                                                     provided updates on the current tax landscape

 Tax for Members

 B
             ringing greater clarity to                    of IRAS’ perspectives on the topic; it was
             not just accredited tax                       also the perfect opportunity to clarify
             professionals but also to                     any doubts with IRAS officers.
             chartered accountants was                          Separately, in the first collaboration
 the thrust of the Singapore Institute of                  of its kind between SIATP and ISCA,
 Accredited Tax Professionals (SIATP)’s                    members from both bodies had the
 activities in recent months. The series                   opportunity to explore the region’s             IRAS officers answered participants’ questions
                                                                                                         about Total Assets Method e-Tax guide after the
 on the Inland Revenue Authority of                        tax developments with Accredited Tax
                                                                                                         session ended
 Singapore (IRAS)’s e-Tax guides again                     Advisor (Income Tax) Rohan Solapurkar,
 attracted a capacity crowd. This time,                    Tax Partner at Deloitte Singapore. The        participants with enriching perspectives
 the focus was on the Total Assets                         discussion, which spanned an array            and interesting takeaways of the region’s
 Method e-Tax guide. The compact 1.5-                      of tax issues and included valuable           tax developments.
 hour event provided SIATP and ISCA                        insights from Mr Solapurkar, resulted             To participate in future sessions,
 members with a deeper understanding                       in an extended session that provided          please email enquiry@siatp.org.sg.

                           ISCA CALENDAR OF EVENTS 2017

SEPTEMBER                                                 Signature Events                                      MEMBERS’
Wednesday     ISCA Breakfast Talk                                                                              PRIVILEGES
  13          Beyond the Numbers - Your Role in
              Crisis Management
                                                                                                                           Chrysalis Brow
              Career Pathways Talk                                                                                      Special packages for
Wednesday                                                                                                           skin booster treatment and
              Hear first-hand accounts from featured                                                               eye brow shaping and design
  13          professionals on the career journeys
              they have taken
                                                                                                                              Kordel’s
              ISCA Sustainability Reporting                                                                     25% off Kordel’s products on Lazada.
 Monday
              Seminar                                                                                             Quote ISCA2017 when ordering

  18          The “How to” of implementing SGX
              Sustainability Reporting Guide                                                                               Raffles Medical
                                                                                                                   Visit Raffles Medical Clinics for

UPCOMING                                                                                                          General Practice (GP) Services,
                                                                                                                Health Screening and Dental Services

 October      ISCA Breakfast Talk                                                                                      Young Earth Sanctuary
                                                                                                                     15% off products with the
  11          Stay tuned for more details!
                                                                                                                     discount code ISCA15PCT

 October      ISCA Mingles                                                                                             For more details, go to
                                                                                                                   Members Benefits and Privileges at

  12
              Watch Appreciation with a Swirl of                                                                          www.isca.org.sg
              Whiskey

  18   IS Chartered Accountant
                         Dates and events are subjected to change without prior notice.
                                       For more details, visit www.isca.org.sg
Building An Influence
                   Strengthening the Profession
Invite your colleagues and friends to join the ISCA community and
be rewarded with shopping vouchers with each successful referral.

    Get more information at isca.org.sg/BuildingAnInfluence

                                                  Global Mindset, Asian Insights
FOCUS
 SINGAPORE CORPORATE AWARDS 2017

SINGAPORE CORPOR
ISCA Members Feted at Awards Ceremony
BY
WANDA TAN, ASHUTOSH RAVIKRISHNAN
AND KOH YUEN LIN

 T
                           he cream of the crop in local
                           corporate governance was
                           honoured yet again at this year’s
                           Singapore Corporate Awards
                           (SCA) 2017. The event was held on
                           July 18 at Resorts World Convention
                           Centre. First launched in 2005, SCA
                           recognises SGX-listed companies
          and individuals who have shown excellence in
          raising Singapore’s corporate disclosure standards
          and corporate governance. It is organised annually
          by ISCA, Singapore Institute of Directors and
          The Business Times, with the support of the
          Accounting and Corporate Regulatory Authority
          and Singapore Exchange (SGX).
              A total of 30 companies, ranging from small
          caps (market capitalisation below S$300 million) to
          large caps (market capitalisation of S$1 billion and
          above), received awards for Best Managed Board,
          Best Investor Relations and Best Annual Report
          while a Special Recognition Award went to Singapore
          Telecommunications Ltd (Singtel) for its board diversity.
              Having swept all three Best Chief Financial
          Officer Awards (across the small, mid and big cap
          categories) in 2016, ISCA members were back in the
          limelight this year. Individual honours for Best Chief
          Financial Officer (CFO) and Best Chief Executive
          Officer (CEO) were given to six recipients – three of
          whom are ISCA members.
              Singtel’s Chua Sock Koong was named Best CEO
          (big cap category). She is the first woman to receive
          the accolade as well as the first person to have won
          both the Best CEO and Best CFO Awards in SCA’s
          12-year history. Last year, Ms Chua also received
          the Outstanding Professional Accountant Award
          at the Singapore Accountancy Awards 2016.
               Two other notable ISCA members lauded at
          SCA 2017 were Darren Tan of Oversea-Chinese
          Banking Corporation Ltd (OCBC Bank) and
          Foo Ai Huey of Centurion Corporation Ltd. They              BEST CHIEF EXECUTIVE OFFICER AWARD
          clinched the Best CFO Award in the big cap and                       (BIG CAP CATEGORY)
          small cap categories, respectively.
              What are the secrets of their success? Find out                 Chua Sock Koong
          in the following pages as our award-winning ISCA                   Group CEO, Singtel Ltd
          members share their inspirations and motivations.

     20   IS Chartered Accountant
RATE AWARDS 2017

 BEST CHIEF FINANCIAL OFFICER AWARD   BEST CHIEF FINANCIAL OFFICER AWARD
          (BIG CAP CATEGORY)                 (SMALL CAP CATEGORY)
            Darren Tan                           Foo Ai Huey
         CFO, OCBC Bank Ltd               CFO, Centurion Corporation Ltd

                                                             September 2017   21
FOCUS
SINGAPORE CORPORATE AWARDS 2017

WHEN CHANGE
COMES CALLING
Chua Sock Koong , FCA (Singapore), Group CEO, Singtel
Chua Sock Koong is keenly aware           well. No longer just a telco, Singtel                        local bourse. “It was a groundbreaking
of the weight of her responsibilities     now has investments in cloud and                             exercise that was extremely successful
as the head of one of Asia’s largest      cyber security, digital marketing and                        – 90% of eligible Singaporeans
telecommunications groups.                analytics. These efforts to take the                         became our shareholders,” says
“Knowing that Singtel plays a critical    Group to its next phase of growth                            Ms Chua, pointing out that the IPO
role in connecting 655 million mobile     helped Ms Chua to clinch the Best                            made Singtel the largest company
customers across the world is one         CEO Award (big cap category*) at the                         listed on the then-Stock Exchange
of the things that gets me out of bed     Singapore Corporate Awards 2017.                             of Singapore (now known as the
every day,” she tells the IS Chartered                                                                 Singapore Exchange or SGX).
Accountant journal. Another, she          TRANSFORMATIONS ABOUND                                            Change came knocking once
adds, is “the excitement about the        Change is something Ms Chua learnt to                        again when the government decided
possibilities that our increasingly       embrace early in her 28-year career in                       to liberalise the telecom sector in
digital world offers” – and the role      Singapore’s telecom industry. As soon                        1996, ending Singtel’s monopoly
Singtel plays in empowering people to     as she joined in 1989, Ms Chua was                           of the market. “When (we heard
embrace technologies of tomorrow.         tasked to lead the corporatisation                           the news), we thought Singtel was
     “The advent of the Internet of       of the then-Telecommunication                                ready for it. After all, we were the
Things, smart cities and 5G means         Authority of Singapore (TAS), a                              incumbent player,” Ms Chua says. But
that the info-communications              statutory board responsible for                              reality was to be different. Just one
(infocomms) business has never been       the Republic’s telecommunications                            month after its debut in April 1997,
more exciting,” says the 59-year-         services. “Back then, it felt as if I had                    M1 grabbed some 10% of mobile
old, who serves as Group CEO of           been plunged into the deep end, but                          market share. “It was a good wake-up
Singtel. Some might be daunted            looking back, those early years were                         call and we fought to keep our market
by the dizzying speed of change           character-building ones,” she recalls.                       share. Since then, we’ve never taken
that characterises life today, but        The project involved working with                            our incumbency for granted.”
Ms Chua is not one of them. “My           the government on a framework to
experiences have taught me that           set up an independent regulatory
change isn’t something to be feared.      body and two separate operating
It is necessary if one is serious about   companies – Singtel and SingPost – as                                          s
progress,” she explains.                  well as implementing the transfer of                           “My experiences have
     Under Ms Chua’s leadership,          staff and assets while also preparing
                                                                                                         taught me that change
Singtel has successfully navigated        staff for future competition.
today’s fast-changing infocomms               In 1993, Ms Chua was involved in
                                                                                                          isn’t something to be
landscape and become a regional           Singtel’s initial public offering (IPO),                       feared. It is necessary
telco, with operations and                when 11% of the company’s shares                                   if one is serious
investments in 23 countries. Singtel’s    were traded for the first time on the                              about progress.”
diversification is not just geographic,
                                          *The big cap category is open to SGX-listed companies with
it extends to its business lines as       S$1 billion and above in market capitalisation.

22   IS Chartered Accountant
September 2017   23
FOCUS
SINGAPORE CORPORATE AWARDS 2017

THE LEARNING NEVER STOPS
It was not just the company and the
market that changed over the years –
Ms Chua’s professional roles did as well.
Having joined Singtel as Treasurer, she
assumed the role of Group CFO in 1999.
She shone in this role, sweeping up
numerous awards and accolades during
her seven-year stint.
     What were the keys to her success?
“My accountancy background gave
me a solid foundation to understand
business, appreciate the science of
finance and the risk-reward trade-offs
involved in managing businesses well,”
shares Ms Chua, who holds a Bachelor
of Accountancy degree from the then-
University of Singapore. Another factor
was her ISCA membership, which kept
her abreast of the latest developments in
accounting-related technical standards,
issues and perspectives. “These helped
me to stay ahead of the changing
expectations of businesses, investors
and stakeholders.”
     Ms Chua considers her CFO role as
a “training ground” that prepared her
for her current position as Group CEO.
“It gave me a solid understanding of the
basics of the business. I also had insights
into the changing telecom landscape.” But
succeeding as a CFO does not guarantee

                         Career Milestones
 1989           Treasurer, Singtel

 1999           Group CFO, Singtel

 2006           Group CFO and CEO, International, Singtel

 2006           Deputy Group CEO, Singtel

 2007           Group CEO, Singtel

24   IS Chartered Accountant
that one will be an effective CEO as both   we took the plunge anyway,” recalls
      play very different roles in a company.     Ms Chua. Those ventures have paid off.
      The roles also require different            Today, Singtel’s overseas operations
      skill sets. “The role of a CEO is more      account for about 70% of the Group’s
      expansive, so CFOs aspiring to take on      earnings. It was not just Singtel’s
      the top role should welcome additional      regional expansion that attracted
      responsibilities in areas that may not      cynicism. Plans to invest in nascent
      be directly related to finance, like        technologies like digital marketing and
      legal matters and strategic planning,”      cybersecurity were also criticised, but
      Ms Chua says, stressing that these          as Ms Chua points out, these ventures
      are key to a deeper understanding of        now contribute more than 9% to the
      the business.                               Group’s revenue.
                                                       Some of the telco’s ventures have
      TAKING ON TECH                              been successful, some have not achieved
      Ms Chua was subsequently appointed          their objectives. Ms Chua, however,
      Group CEO of Singtel in 2007. In her        chooses to believe that being open to
      current role, she is focused on keeping     failure means being open to opportunity.
      Singtel relevant and ahead of the curve     “We certainly made mistakes on some
      instead of being a company that merely      deals. But the experience taught us how
      reacts to change. “We ask ourselves how     to better evaluate our investments,
      we should innovate our core businesses,     work with partners and set up proper
      create sustainable new digital ventures     processes,” she explains. “They also
      and navigate our transition into the        honed our cultural sensitivities as we
      digital economy,” she says.                 bought into more businesses overseas.”
          Singtel has taken calculated risks           Although embracing change has
      in an effort to create long-term growth.    helped Singtel to remain relevant,
      “We invested in regional telcos in India    Ms Chua says it is important to help
      and Australia in spite of challenging       staff manage the level of change. To do
      conditions. Back then, naysayers said       this, the corporate culture at Singtel
      we would fail because we had zero           does not shun or reject change. Instead,
      experience in operating overseas, but       it nurtures staff to be nimble and take
                                                  risks – traits that are even more valuable
                                                  today, given the rapid pace of disruption.
                s                                 “Teamwork is important for this, as
                                                  the sum is greater than the parts,” she
       “My accountancy                            explains. “We need to field the best team
   background gave me a                           possible as we tackle future challenges.”
      solid foundation to                              This sums up Ms Chua’s approach
    understand business,                          to leadership – to nurture people to be
  appreciate the science of                       the best that they can be, instead
finance and the risk-reward                       of accepting them as what they are.
                                                  “A good leader is like a good coach,”
    trade-offs involved in
                                                  she says. “(We have to) play to each
managing businesses well.”                        person’s strengths, then we can bring
                                                  out the best in everyone.”

                                                                         September 2017   25
FOCUS
SINGAPORE CORPORATE AWARDS 2017

BEYOND
                                                                                                      he says. Finance and accounting
                                                                                                      are two halves of the financial
                                                                                                      book. “Accounting is more focused
                                                                                                      on the past and finance is more

NUMBERS
                                                                                                      focused on the future. I preferred
                                                                                                      to do something that can impact
                                                                                                      future outcomes,” he explains. Upon
                                                                                                      graduation, he joined GIC as Portfolio
                                                                                                      Manager, trading first in foreign
                                                                                                      exchange, then moving to other
Darren Tan, FCA (Singapore),                                                                          aspects of GIC investments such as

CFO, OCBC Bank                                                                                        bonds and commodities. “I was very
                                                                                                      much the macro guy taking positions
                                                                                                      according to trends and analyses,”
You could say 41 is a comparatively      “I realised that I have to be myself.”                       says Mr Tan, whose last position at
young age to be appointed as a           That mindset enabled him to                                  GIC was Head of Money Markets.
chief financial officer, what more       confidently apply his background                                 The role allowed him an easy
at OCBC Bank, Singapore’s longest-       experience as Portfolio Manager of                           transition when he joined OCBC
established bank and the second-         Government of Singapore Investment                           Bank as Head of Asset Liability
largest financial services group in      Corporation (GIC) to his new role,                           Management, Global Treasury,
Southeast Asia by assets.                injecting youthful agility to the                            in 2007. Then came the financial
    It certainly was a big challenge     Finance department and putting an                            meltdown in 2008. “I was close to
for Darren Tan. “The six months          emphasis on developing the value-add                         being in the hottest seat!” he recalls
understudying my predecessor             aspects of the team’s work in steering                       with a laugh. But if there is anything
(Soon Tit Koon, who had been in the      the organisation’s growth.                                   Mr Tan has in abundance, it is grit.
financial sector for 28 years before          Today, with six years of                                “Perhaps it was how I managed to
retiring) was difficult, as I was        experience in his role, Mr Tan was                           pull through the difficult period that
moving from an area of expertise         named Best CFO (big cap category*)                           got the attention of the management
that I was comfortable in – as Head of   at Singapore Corporate Awards 2017.                          or Board of Directors.” So it was no
Asset Liability Management in Global                                                                  surprise when David Conner, then the
Treasury – to totally unfamiliar         A CAREER OF                                                  CEO of OCBC Bank, approached him
ground,” he recalls.                     UNEXPECTED TURNS                                             with the proposition of stepping into
    By all accounts, Mr Tan, now 46,     A Science student, Mr Tan turned                             the role of CFO.
is understating the size of the          down a place in the School of
challenge he faced then, when he         Electrical and Electronic Engineering                        WORKING “SMART”
stepped into the role in 2011. It was    at Nanyang Technological University                          Of the Best CFO Award, Mr Tan says
when the financial sector was under      (NTU). He opted instead for                                  it is “an affirmation of not just the
fierce scrutiny following the Lehman     Accountancy at NTU, where he                                 external work that has been reported,
Brothers’ collapse three years           graduated with First Class Honours.                          but also the invisible, internal
previously. His family saw less of him   “I studied Accountancy for practical
as he put in longer hours to get up to   reasons; I couldn’t wait to go out to
speed. “The first six months in the
position were even tougher (than the
                                         work and this was a professional
                                         degree with direct honours that took
                                                                                                                           s
six months understudying Mr Soon),”      only three years,” he explains.
                                                                                                        “(Accountants) should be
says Mr Tan. “How do you step                 However, Mr Tan made a                                    able to highlight strange
into the shoes of a well-respected       deliberate decision to avoid the                                  phenomena, and spot
veteran? How do you walk and talk        common practice of starting an                                   abnormalities. Moving
like a CFO? How do you (take on) the     accountancy career as an auditor                                away from the past into
gravitas of a leader?”                   or accountant. “My experience as                                the future – that is how
    He tried emulating the ways          a CFO is quite different as I first
                                                                                                          I think the accounting
of his predecessor. But after half       started out as a portfolio manager,”
a year, Mr Tan decided he would not                                                                     profession should evolve.”
                                         *The big cap category is open to SGX-listed companies with
model himself after someone else.        S$1 billion and above in market capitalisation.

26   IS Chartered Accountant
March 2017
September        27
FOCUS
SINGAPORE CORPORATE AWARDS 2017

aspects of what my team is striving
to achieve”. He is, he emphasises,
“simply a representative of the team”.
This internal aspect refers to what
he has coined as “S.M.A.R.T.” finance
– thinking strategically (S), mining
data and information for insights
(M), analysing and advising business
partners (A), facilitating resources
allocation (R) and grooming talent (T).
     “This is the vision I have for
every member in OCBC Bank’s
Finance department, and what
it translates to, is an innate
inquisitiveness about everything,”
he explains. “Always ask why. Why
are we producing this report? Why
are we doing things a certain way?
Why have you generated a certain
number? I encourage them to look
beyond numbers and be passionately
curious. The story behind the
numbers is a lot more important.”
     He goes on to say that the usual
way of managing a bank has evolved
after the 2008 financial crisis, and
it is evolving into “one where you
have to be very mindful of how
every single dollar is used”. As such,
“accountants can no longer say, ‘Oh,
this is none of my business, I am just
producing a number.’ They should be
able to highlight strange phenomena,
and spot abnormalities. Moving away
from the past into the future – that is
how I think the accounting profession
should evolve,” he explains.
     “Thus, we are emphasising on
developing talent who can value-
add. Beyond reporting figures, the
Finance department should also
be instrumental in steering an
organisation in the right direction for
business development,” says Mr Tan.
This is the same approach he takes
for his role as CFO. “There has been
on-going discussion about the CFO
playing the role of strategic partner
to the CEO, and that is certainly how
I see it. The CFO should be able to

28   IS Chartered Accountant
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