Singapore Labour Foundation Annual Report
2014
S. 37 of 2015
Presented to Parliament pursuant to Statute.
Ordered by Parliament to lie upon the Table:
9 July 2015
Contents
Chairman’s Statement
03
Board of Directors
05
Corporate Governance
09
Investment Update
11
Our Commitment, Your Stories
12
SLF Group
45
Membership Listing
49
Like the dandelion, the Singapore Labour Foundation (SLF) is robust, able to thrive in any condition, and brings
many benefits to its members. The seeds of the dandelion, each a symbol of new life and hope, also represent the
unions and workers who have been able to grow and flourish as a result of SLF’s support.
Singapore Labour Foundation | 1
Mission Statement
The mission of the Singapore Labour Foundation is to
improve the welfare of union members and further the
development of the trade union movement.
2 | Annual Report 2014
Chairman’s
Statement
In a climate of slower economic
growth and tight labour market, it
is crucial that we continue to focus
on productivity and innovation, as it
is the only sustainable way to raise
wages and enhance careers. In line
with the Government’s SkillsFuture
initiatives to encourage workers to
take charge of their own learning,
Singapore Labour Foundation
(SLF) is committed to supporting
the tripartite partners in their efforts
to help workers adapt to new
technologies and trends, seize new
opportunities, create new value and
be ready for the future.
Better Jobs for Life
Initiated jointly by SLF, the
Singapore Workforce Development
Agency (WDA) and the Labour
Movement, the Employment and
Employability Institute (e2i) is a
testament to our commitment to
invest in our workers and help
them to upskill and upgrade and
to enhance their careers and
employability.
With a bigger campus at the new
Devan Nair Institute for Employment
and Employability officially opened
by Prime Minister Lee Hsien Loong
on 1 May 2014, e2i assisted more
than 80,000 workers in getting better
jobs or earn better pay through
career coaching, skills upgrading,
job matching, job re-design and
productivity initiatives.
With the Government’s introduction
of SkillsFuture Credit to encourage
workers to take charge of their own
learning, e2i will continue to work
together with employers, training
partners and industry associations
to identify and close the skills and
productivity gaps.
Nurturing Labour Leaders
The Workers’ Voice
Union leaders play a vital role
in developing a strong and
progressive Labour Movement and
in understanding and articulating
the needs and concerns of our
union members and workers. In
recognition of this, SLF continued
to partner the Ong Teng Cheong
Labour Leadership Institute (OTCi)
with a contribution of $2.5 million in
FY 2014 to support 4,177 training
places for various union leadership
training and development and
3,257 places for conferences,
dialogues, seminars and other
engagement activities. Through
these initiatives, SLF helps develop
union leaders in their passion to
lead, compassion to help and
desire to acquire knowledge so as
to make a difference to the lives of
union members and help workers
at all levels to integrate and adjust
to the transforming economic
environment.
In tandem with rising union
membership and the formation of
more union branches in Singapore,
SLF contributed a grant of $4.4 million
in 2014 towards the development
of industrial relations capability.
This has enabled the unions to
further strengthen their team of
Industrial Relations Officers (IROs)
to work with companies and key
Government agencies to build
strong bipartism and tripartism,
champion Progressive Wage Model
and sustainable wage increases for
workers across all sectors.
Singapore Labour Foundation | 3
Building Collaborative
Tripartism
In 2014, SLF contributed $500,000
to the Singapore National Employers
Federation (SNEF) - Stephen Lee
Award in Tripartism and Industrial
Relations, in support of SNEF’s
efforts to build up its talent pool in
industrial relations and tripartism.
The strengthening of SNEF’s core
industrial relations expertise will
enable SNEF and employers to
continue to play a strong and
effective role in tripartism and
work with the Labour Movement
in upholding industrial harmony in
Singapore.
Sharpening Social Impact
As a Principal Member of NTUC
Enterprise Co-operative Limited,
SLF continues to support NTUC
Enterprise in sharpening the
social impact of the NTUC Social
Enterprises (SEs). Over the last
four decades, NTUC SEs have
been touching the lives of working
families in Singapore through the
provision of daily essentials, cooked
food, health and community care,
childcare, continuing education and
financial services.
In October 2014, the group of
NTUC SEs launched a 15-month
“Pioneers OK!” programme to
honour the pioneers of Singapore
for their contributions to nation-building as well as to
recognise the important roles
they continue to play today. The
programme offers discounts and
preferential treatment for our
pioneers at the SEs’ supermarkets,
food courts and other outlets.
A Helping Hand during
Adversity
SLF stands committed to lend
a helping hand to low-income
union members, workers and their
families and contributed $3.5 million
towards the Labour Movement’s
U Care Fund in 2014. Through the
various U Care Fund programmes,
SLF Special Relief Fund, SLF Hardship Grant and other
initiatives, SLF continues to provide
strong support to help improve the
lives of needy union members and
their families.
Appreciating U
In recognition of the contributions
of low wage workers to our society,
SLF committed $2 million to
support the Labour Movement’s
‘Appreciating U’ campaign over a
period of two years. Launched in
June 2014, the ‘Appreciating U’
movement aimed to encourage
employers and the general public to
show more care and appreciation
for our cleaners, security and
landscape workers.
Financial Highlights
The Group’s financial performance
during the year was robust,
mainly contributed by investment
performance and returns from
Labour Movement Social
Enterprises. This has enabled
SLF to step up its funding support
to the Labour Movement and
commit up to $200 million under
a 3:1 matching grant to the NTUC
Endowment Fund. The objective
of the NTUC Endowment Fund is
to enable the Labour Movement
to scale up membership and
leadership development initiatives
over the long term. The Fund aims
to raise a total of approximately
$270 million over a 5-year period.
After providing for the grants and
expenses, the Group registered a
healthy surplus of $166 million.
SLF Board from April 2012 to September 2014 and also as
Chairman of the SLF Investment
Committee and SLF Strategic
Advisers Private Limited from April 2012 to May 2014.
With his appointment as Minister
for Manpower, Mr Lim Swee Say
has stepped down from the SLF
Board with effect from 4 May 2015.
I would like to express my gratitude
to him for his dedication and
invaluable contributions during his
directorship on the SLF Board from 1 December 2004 to 3 May 2015.
Mr Lim’s guidance on the SLF Board
has enabled SLF to better appreciate
the needs and aspirations of the
diverse workforce and establish
a closer rapport with the Labour
Movement to work towards the
common goal of achieving a better
life for our workers and their families.
On behalf of the SLF Board, I would also like to thank all our
institutional members and partners,
for their unwavering support and
contributions over the years.
As we celebrate SG50, SLF will
continue to uphold the spirit of
tripartism and build upon the
foundations laid by our pioneer
generation of leaders. We will
continue to be an active partner in
Singapore’s economic transition
and restructuring, to help achieve
growth, raise wages and achieve
better lives for all.
In Appreciation
I would like to express my
appreciation to my fellow directors
on the SLF Board and SLF
companies for their advice and
support. I would like to thank Mr Quah Wee Ghee for his
dedicated commitment and
invaluable insights and guidance
during his directorship on the Gan Kim Yong
Chairman
4 | Annual Report 2014
Singapore Labour Foundation | 5
Board of
Directors
Mr Gan Kim Yong
Chairman
Mr Gan is currently the Minister for Health and chairs the Ministerial Committee
on Ageing (MCA). He helmed the Ministry of Manpower as the Acting Minister for
Manpower in April 2008 and full Minister in April 2009. He was also appointed the
Minister of State for Education and Minister of State for Manpower concurrently in 2005.
Mr Gan led national committees such as the Tripartite Committee on Employability of
Older Workers and the Tripartite Panel on Community Engagement at Workplaces. He
also served as the Advisor of the Tripartite Alliance for Fair Employment Practices and
was a member of the Economic Strategies Committee.
Mr Lim Boon Heng
Deputy Chairman
Mr Lim is currently the Chairman of NTUC Enterprise Co-operative Limited and
Temasek Holdings (Private) Ltd. He was the Secretary-General of the National
Trades Union Congress from 1993 to 2006. A former Minister in the Prime Minister’s
Office, he was also Minister without Portfolio and Senior Minister of State (Trade
and Industry) from 1993 to 2011. Mr Lim also served as a Member of Parliament
for Kebun Baru, Ulu Pandan, Bukit Timah and Jurong Group Representation
Constituencies. He was also Deputy Chairman of People’s Association and is
currently the Special Advisor to the Chairman of People’s Association.
Mr Lim Swee Say (till 3 May 2015)
Director
Mr Lim is currently the Minister for Manpower and the Deputy Chairman of the People’s Association.
He relinquished his appointments as Minister in the Prime Minister’s Office and
Secretary-General of the National Trades Union Congress with effect from 4 May 2015.
Mr Lim had held various political appointments including the Minister of State for
Communications and Information Technology, Minister of State for Trade and Industry, Minister for the Environment and Second Minister for National Development.
6 | Annual Report 2014
Mr Bobby Chin
Director
Mr Chin is the Chairman of NTUC Fairprice Co-operative Ltd and NTUC FairPrice
Foundation Ltd. He is also the Deputy Chairman of NTUC Enterprise Co-operative
Limited and serves as a member of the Council of Presidential Advisers, Singapore.
Mr Chin currently sits on the boards of several listed companies including Temasek
Holdings (Private) Limited, Singapore Telecommunications Ltd, Yeo Hiap Seng Ltd, Ho Bee Land Ltd, SembCorp Industries Ltd and AV Jennings Ltd. He was the Managing
Partner of KPMG Singapore from 1992 until his retirement in September 2005.
Mr Stephen Lee
Director
Mr Lee is the Chairman of NTUC Income Insurance Co-operative Ltd, Singapore
Airlines Ltd and SIA Engineering Company Ltd. He also serves as a Director of
NTUC Enterprise Co-operative Limited and is the immediate past President of the
Singapore National Employers Federation.
Mr Lee is the Managing Director of Shanghai Commercial & Savings Bank Ltd
(Taiwan) and Great Malaysia Textile Investments Pte Ltd. He is also a Director of
China National Petroleum Corporation (CNPC, Beijing), Kidney Dialysis Foundation
and CapitaLand Limited. He was appointed as a Senior International Advisor with
Temasek International Advisors Pte Ltd with effect from 1 January 2015. Mr Lee
is also a member of the National Wages Council and an Alternate Member of the
Council of Presidential Advisers of the Republic of Singapore.
Ms Tan Hwee Bin
Director
Ms Tan is the Executive Director of Wing Tai Holdings Limited. She is also the
Chairman of NTUC Health Co-operative Ltd and serves as a Director of NTUC
Fairprice Co-operative Ltd, NTUC FairPrice Foundation Ltd and Agency for
Integrated Care Pte Ltd. She is a Council Member of the Singapore National
Employers Federation. She has also served in the Chinese Development
Assistance Council and the Central Singapore Community Development Council.
She was awarded the Public Service Medal (PBM) in 2011.
Mr Quah Wee Ghee (till 30 September 2014)
Director
Mr Quah is currently the Director of several companies, including Oversea-Chinese
Banking Corporation Limited, Singapore Exchange Ltd, Bank of Singapore Ltd, Great Eastern Life Assurance Co Ltd and The Overseas Assurance Corporation Ltd.
He was formerly the Chairman of GIC’s India and Natural Resources Business Groups
and President and Director of GIC Asset Management Pte Ltd.
Singapore Labour Foundation | 7
SLF AUDIT AND RISK COMMITTEE
Bobby Chin
Stephen Lee
Chairman
Tan Hwee Bin
Member
Member
SLF INVESTMENT COMMITTEE
Quah Wee Ghee
Lim Boon Heng
Tan Hwee Bin
Adelene Tan
Chairman
(till 31 May 2014)
Chairman
(with effect from 1 June 2014)
Member
Stephen Lee
Member
Resource Member
SLF ESTABLISHMENT COMMITTEE
Bobby Chin
Lim Boon Heng
Chairman
Member
SLF SENIOR MANAGEMENT
Adeline Sum
Chief Executive Officer
David Poh
Deputy Chief Executive
Officer and
Chief Financial Officer
Lim Li Ying
Chief Investment Officer,
SLF, and
Chief Executive Officer &
Executive Director, SLF Strategic Advisers
Private Limited
Rita Lau
Director,
Corporate Planning and Development
8 | Annual Report 2014
Corporate
Governance
BOARD MATTERS
The Singapore Labour Foundation (SLF) is overseen
by a Board of Directors. In accordance with the SLF Act
(Chapter 302), five members are appointed by the
Minister for Manpower, of which three are advised by the
National Trades Union Congress (NTUC), and the remaining
two elected by members at the annual general meeting of
the Foundation. All the Board members are non-executive,
drawn from the public and private sectors with a broad range
of experience and expertise in sectors including accounting,
investment and property sectors. The members provide
complementary expertise and depth of experience to the Board.
All Board members, including the Chairman and
Deputy Chairman, are appointed for a term of three years,
subject to renewal.
Conduct of Affairs
Board meetings are held quarterly
for the purpose of providing
strategic direction, reviewing
major corporate policies and
transactions, approving financial
statements and annual budget
including support for major
initiatives of the Labour Movement.
Management also engages and
obtains approval of the Board on
significant transactions and issues.
There were four Board meetings in
Financial Year (FY) 2014.
Board members are provided
with the necessary information
in advance of the meeting for
them to effectively discharge their
responsibilities at each Board
meeting. Board Members may
request additional information
where necessary. Minutes of Board
meetings are documented for
record, with matters arising followed
up promptly and reported back at
the following Board meeting.
Board Committees
In the discharge of its
responsibilities, the Board
is supported by three Board
Committees, namely the Investment
Committee, Establishment
Committee and the Audit and Risk
Committee, each commissioned
with respective Terms of Reference
as approved by the Board. Minutes
of the Board Committee meetings
are tabled at Board meetings.
Investment Committee
The Investment Committee is
chaired by Mr Lim Boon Heng
as at 31 December 2014. The
other members of the Investment
Committee are Mr Stephen Lee
and Ms Tan Hwee Bin. The
Investment Committee reviews
and recommends policies for
the investment framework so
as to achieve optimal long-term
investment returns in order to
support SLF’s funding commitment
to the Labour Movement. The
Committee also reviews and sets
investment guidelines in line with
the policies approved by the Board.
The Investment Committee met
seven times in FY2014.
Establishment Committee
The Establishment Committee
was set up on 1 November 2014
to provide oversight on the
compensation and benefits
philosophy and framework
for SLF and the remuneration,
appointment, and development of
senior management in SLF. The
Singapore Labour Foundation | 9
Establishment Committee is chaired
by Mr Bobby Chin and the other
member is Mr Lim Boon Heng. The
Committee met once in FY2014.
Audit and Risk Committee
The Audit and Risk Committee
is chaired by Mr Bobby Chin.
Its current members are Mr Stephen Lee and Ms Tan
Hwee Bin. The Audit and Risk
Committee assists the Board
to maintain a high standard of
corporate governance, particularly
in the areas of risk management,
financial reporting and the internal
control systems. The Committee
meets with the internal and external
auditors to review their audit plans,
observations and annual audited
financial statements. The Committee
also reviews, with the internal and
external auditors, the results of their
evaluation of SLF’s internal control
system.
The SLF Audit and Risk Committee
met three times in FY2014. It had
held meetings with the internal
and external auditors during
FY2014, without the presence of
Management, to enable the auditors
to raise issues encountered in the
course of their work directly to the
Committee.
RISK AND INTERNAL
CONTROL FRAMEWORK
Under the guidance of the
Audit and Risk Committee, SLF
implemented an Enterprise Risk
Management (ERM) framework
across the Group. The ERM
framework puts in place a robust,
integrated and holistic risk
management system, and effective
internal controls to meet the needs
of the Group. The ERM framework
is intended to achieve the following
outcomes:
(i) Protecting our assets;
(ii) Safeguarding our reputation;
and
(iii) Embedding a risk-aware culture
throughout the Group.
The Management Risk Committee
comprising management staff
across the Group will co-ordinate
the risk management initiatives
to ensure that significant risks
are identified and adequately
addressed. In FY2014, the
Management Risk Committee
oversaw the institution of a
compliance framework containing
policies and processes to ensure
the proper management of personal
data in the Group in accordance
with the requirements of the
Personal Data Protection Act.
SLF’s internal control framework
aims to ensure that assets are
properly safeguarded and
accounting systems and controls
are sound and effective, financial
information is reliable and key
computerised systems are
adequately secure to minimise our risks.
The control framework includes
the segregation of duties,
documentation of key work
procedures and policies,
periodic reconciliation of financial
information, clearly defined
responsibility and financial authority
limits. Independent internal and
external auditing functions are also
in place.
Risk management within SLF is
a continuous and developing
process. The risks and internal
control framework will be reviewed
on a regular basis to ensure its
continued relevance.
Internal Audit
The Internal Audit Function is
outsourced to an independent
firm, RSM Ethos Pte. Ltd. Riskbased audits are conducted to
provide objective audit assurance
to the Board that internal controls
are adequate and effective in
all key financial and operational
systems and processes. The
audits also include evaluating
policies, procedures and systems
to ensure the integrity of financial
and operating information, as
well as compliance with laws
and regulations. Findings and
recommendations from the audits
are addressed to management for
their appropriate action. Internal
Audit reports functionally to the
Audit and Risk Committee and
has full and direct access to the
Committee.
External Audit
Ernst & Young was appointed
for the audit of SLF’s financial
statements. Arising from the audit,
Ernst & Young reports to the Audit
and Risk Committee its findings
on significant audit, accounting
and internal control issues, and
also recommends improvements
to systems and processes as
appropriate.
Business and Ethical Conduct
Staff of the SLF Group are obliged
to comply with practices that reflect
the highest standards of behaviour
and professionalism. These
include abiding by the SLF Code of
Ethics. The Code of Ethics guides
staff in upholding public trust and
confidence, and includes guidelines
on receiving gifts, entertainment or
favours in the course of their official
duties. Staff are also obliged not to
involve themselves in matters where
a conflict of interest may arise.
Whistleblowing Channel
Whistleblowing channels have
been put in place to reinforce
SLF’s commitment to a culture of
integrity and transparency within
the organisation. A whistleblowing
policy was adopted to provide
assurance to employees that they
will be protected from reprisals
or victimisation for whistleblowing
in good faith. Multiple channels
of reporting, including contacting
an independent external party
or the Audit and Risk Committee
Chairman directly, were created to
facilitate easy access by the staff.
Information provided will be treated
with the strictest confidentiality and
all cases reported will be surfaced
to the Audit and Risk Committee
and thoroughly investigated, with
appropriate remedial measures
taken where warranted.
Seminars on Strengthening
Corporate Governance and
Risk Awareness
To inculcate a risk–aware culture
in the Group, regular seminars on
relevant topics are organised for all
staff of the SLF Group. The focus
this year was on data security,
and the training had helped staff
better appreciate the importance
of safeguarding the Group’s data,
and the role they play in preventing
unauthorised access to data.
Annual Report
SLF submits an annual report after
the end of each financial year to
the Minister for Manpower, before
presenting this to Parliament. The
annual report outlines the activities
of SLF during the preceding
financial year, and includes the
audited financial statements.
10 | Annual Report 2014
Investment
Update
As of the recent fiscal year-end (31 December 2014),
the SLF General Fund returned an annualised 5.97%1
(in nominal terms, before inflation) since its inception
(July 2004), and was valued at SGD 1,328.171 million.
SLF General Fund
Market Performance Comparison
SLF’s key mission is to further
the trade union and co-operative
movement (the Labour Movement).
The SLF General Fund’s key
purpose is to support SLF in
achieving its key mission on
a sustainable basis over the
long-term. As such,
the SLF General Fund is
managed as an endowment fund,
with a very long-term time horizon.
SLF General Fund Investment Returns
Since the inception of the
SLF General Fund in 2004, its total
value has grown from SGD 530.301
million to SGD 1,328.171 million.
This has been due to investment
gains, as well as savings set aside
prudently by SLF to grow the fund.
This enables sufficient investment
income over the long-term to
support the Labour Movement.
Since inception (July 2004), the
SLF General Fund has returned
an annualised 6.30%1 (in nominal
terms, before inflation), which
translates to an annualised 3.70%1
(in real terms, after inflation). These
numbers are in SGD terms.
1
The following lists the annualised
returns (all in nominal terms,
before inflation) for various equity
markets since July 2004:
- Developed market equities
(in SGD) = 4.52%1
- Emerging market equities
(in SGD) = 8.02%1
- Singapore market equities
(in SGD) = 8.78%1
Over the same period, global
government bonds returned
an annualised 4.76%1 returns
(hedged and in nominal terms,
before inflation).
Discussion of Markets and
Performance in 2014
The majority of asset classes
returned positively in 2014,
with the distinct exception of
commodities. Markets were
supported by accommodative
monetary policies in most
countries, in particular Japan and
the Euro-zone. Inflation remained
benign and trended lower in most
countries
The out-performance was led by
developed market equities, which
returned 10.13%1 in SGD in 2014.
Emerging market and Singapore
equities returned 2.64%1 and
8.02%1 respectively in SGD in
2014. Global government bonds
(hedged) returned 8.35%1 over the
same period.
Data sources: SLF, Bloomberg; data for illustrative purposes only, not audited.
Singapore Labour Foundation | 11
Commodities had poor
performance in 2014, due to the
widening gap between supply and
demand. Under-performance was
led by oil, which fell 47.21%1 in
SGD terms in 2014.
Looking Ahead
Over the next five to ten years,
realistic estimates continue to
suggest annualised real returns
of 2%1 (after inflation). This is due
primarily to the low level of interest
rates globally, which has also been
reflected in the pricing of other
assets. Indeed, this trend has
furthered in 2014. In Singapore,
the 10-year Singapore government
bond yielded 2.28%1 as of 31 December 2014 (in nominal
terms, before inflation). Since July
2004, Singapore’s annualised
inflation rate has been 2.51%1.
Globally, inflation is likely to
continue to be mostly subdued,
with debt levels in several countries
still high. Central banks will likely
be cautious in reducing policy
accommodation in this environment.
We continue to take optimal levels
of risk, commensurate with the SLF
General Fund’s long-term outlook,
while taking into consideration the
investment outlook going forward.
12 | Annual Report 2014
Our
Commitment,
Your Stories
(1 January 2014 to
31 December 2014)
The Singapore Labour Foundation (SLF) reaffirmed its
commitment and partnership with the Labour Movement (LM)
as the LM moves forward together as one, and creates a
brighter future for all.
In 2014, SLF provided a total of $248.7 million to develop the
LM, unions and NTUC Social Enterprises (SEs), and help union
members and their families.
Nurturing Labour Leaders
• SLF contributed $2.5 million
towards union leadership
development, including 4,177
training places for various
union leadership courses and
3,257 places for conferences,
dialogues, seminars and other
engagement activities held in
2014.
The Workers’ Voice
Better Jobs for Life
• With a bigger campus, the
Devan Nair Employment and
Employability Institute (e2i) hosted
more than 1,000 events with
about 100,000 visitors.
• e2i assisted more than 80,000
workers in getting better jobs or
earn better pay through career
coaching, skills upgrading, job
matching, job redesign and
productivity initiatives.
• The Inclusive Growth Programme supported 1,680 projects and will
benefit more than 83,000 workers
from the cleaning, security,
landscape, manufacturing and
services sectors with productivityled wage increases when fully
implemented.
• More than 51,800 workers
upgraded their skills through
training, with new Professional
Development programmes
implemented, including “Creative
Craftsman Apprenticeship
Programme” and “Certification for
Green Mark Professionals (GMP)”.
Singapore Labour Foundation | 13
• SLF contributed a grant of
$4.4 million towards the
expansion of industrial relations
capability, enabling the LM
to strengthen its team of 140
Industrial Relations Officers to
build stronger tripartism and
spearhead the adoption of the
Progressive Wage Model in all
sectors across Singapore.
Sharpening Social Impact
• SLF continued to support
NTUC Enterprise in delivering
its strategic intent of sharpening
the social impact of NTUC SEs
through moderating the cost of
living and meeting under-served
needs.
• To honour and thank our
pioneers for their hard work
and dedication, the group of
NTUC SEs launched a 15-month
“Pioneers OK!” programme which
offered discounts, preferential
treatment and a more positive
experience at the NTUC SEs’
supermarkets, food courts and
other stores.
A Helping Hand
during Adversity
• SLF contributed $3.5 million to
the NTUC-U Care Fund for
U Stretch Vouchers, Back to School
Vouchers, as well as NTUC
Eldercare Trust and NTUC First
Campus Bright Horizons Fund.
• SLF supported the NTUC GIFT,
a group term life insurance
policy, with an annual
contribution of $0.9 million
and assisted 203 lower income
union members through the
SLF Hardship Grant in 2014.
Appreciating U
• SLF committed $2 million to support the LM’s ‘Appreciating
U’ campaign over a period of
two years, in recognition of the
contributions of low-wage workers
to our society.
• SLF contributed $250,000 to the
‘Appreciating U – Our Pioneers’
celebration to honour our pioneer
generation of union leaders
and union members for their
contributions to Singapore’s
early days of nation-building and
establishing the foundation of
tripartism in Singapore.
14 | Annual Report 2014
Singapore Labour Foundation | 15
Enhancing
Workers’
Employability
and
Employment
“I am very thankful for the
valuable opportunities that
I have received from e2i and
will continue to work hard.”
– Mr Kevin Ranjan, Logistics Associate,
Sengkang Health
62-year old Mr Kevin Ranjan had
been working at his previous job
for seven years before he was
retrenched. “It was very sudden.
The company went through a
restructuring exercise and wanted
to relocate to another part of the
world, so all of its employees were
asked to leave,” he shared.
Having worked in the logistics
industry for more than 20 years,
Kevin felt confident of getting a
new job immediately. He went
through several interviews but none
were successful. “My age was a
factor. I wanted a permanent job as
it will give me the stability I need to
provide for my family,” the father of
two explained.
A strong advocate of lifelong
learning, he upgraded himself and
earned a Diploma in Warehouse
Management and Supply Chain
at an accredited local institution.
After being jobless for five-andhalf months, Kevin felt something
amiss when he was unable to get a
job, even with his experience and
qualifications. Hence he decided
to seek help from the Devan Nair
Employment and Employability
Institute (e2i).
In 2014, e2i organised 150 job fairs
such as monthly community fairs at
residential areas, WorkPro-related
ones targeted at mature workers,
as well as industry-specific and
company-dedicated job fairs. Vacancies offered were from rank-and-file to professional,
manager and executive positions
in diverse sectors such as
Hospitality, Food and Beverage,
Retail, Attractions, Healthcare,
Manufacturing, Marine, Transport
and Logistics. One of e2i’s new
initiatives is Jobs Bank Connect
where e2i helps Professionals,
Managers and Executives (PMEs)
16 | Annual Report 2014
navigate the National Jobs Bank
for suitable vacancies, as well as
help them to prepare customised
resumes for online job applications.
Kevin attended a few of the job
fairs that e2i organised. He was
also guided by e2i’s experienced
Employability Coaches who
assessed and determined his
current level of employability,
as well as explore employment
options with him.
“After listening to my problems
and the challenges that I faced
in searching for a good job, my
Employability Coach, Vincent,
gave me some useful advices such
as having a more open mind-set
when I attend interviews,” Kevin
continued.
Vincent then recommended Kevin
to attend a two-day Executive
Workshop which taught Kevin the
necessary skills, knowledge and
confidence to communicate better
during interviews, write persuasive
cover letter and resume, which
all helped to enhance his
employability. Soon after, Kevin
attended a second round of
interview with Sengkang Health,
which was arranged by e2i. “At the
second interview, my confidence
level was much higher. I was more
prepared and approached the
interview with a more positive and
open mind-set,” he explained.
Kevin attended the job fairs organised by e2i and was guided by e2i’s
experienced Employability Coaches.
Singapore Labour Foundation | 17
Now a Logistics Associate at
Sengkang Health, Kevin is bringing
home a higher salary than his
previous job. “I am very thankful
for the valuable opportunities that
I have received from e2i and will
continue to work hard.”
Skilling Up
For The
Future
“I knew I had to upgrade
myself. With today’s highly
competitive workforce, your
knowledge and skills have
to stay relevant and up-todate, or else you are going
to fall behind.”
– Mr Eric Wang, Shop Manager,
Enoteca Co. Ltd
Mr Eric Wang, a shop manager
at Enoteca Co. Ltd, recalled an
incident when he was stumped
by a customer’s query on the
differences between various red
wines.
“Because of my limited
knowledge, I was unable to give
a satisfactory explanation. When
my customers asked me to
explain certain wine terms that
are highly specialised, I wasn’t
able to answer them. As it is my
job to know and sell wines, it
was frustrating knowing I wasn’t
doing a good job to assist my
customers,” he shared.
Eric decided to actively seek out
avenues to acquire the essential
skill sets and widen his horizons
in wine knowledge. He explained,
“My limited knowledge prevented
me from serving my customers
well. I knew I had to upgrade
myself. With today’s highly
competitive workforce, your
knowledge and skills have to stay
relevant and up-to-date, or else
you are going to fall behind.”
Eric approached his friend,
Mr Lim Hwee Peng, a highly
qualified international wine
specialist. He is also the training
provider for the Certified
Specialist of Wines (CSW)
programme offered in partnership
with Devan Nair Employment and
Employability Institute (e2i).
The knowledge gained from the
theory-intensive programme
complemented Eric’s great
passion for wines, effectively
allowing him to enhance the
services he provides to his
18 | Annual Report 2014
customers. “With the new
knowledge gained, I am now
able to provide a more detailed
and personalised service to my
customers and share with them
my passion,” he explained.
The training has helped broaden
and deepen Eric’s competencies,
which enabled him to progress in
the productivity, wage and career
ladders. Eric added, “Nothing
comes easy. We have to put in
our best to achieve our goals.”
Thanks to his diligence and
hard work, Eric has successfully
passed the assessment at
the end of the three-month
programme. Now, he is able to
speak more professionally and
easily rattle off details such as
the history and culture behind
the wine, the winemaking
process, and other valuable
knowledge.
Looking forward, Eric wants
to continue upgrading himself
by taking up more advanced
programmes as he aspires to be
certified as a wine educator and
be able to professionally teach
others about wines.
As a one-stop training hub
to ‘make every worker a
better worker’, e2i has also
worked with other training
partners to offer professional
development programmes such
as the “Creative Craftsman
Apprenticeship Programme” and
“Certification for Green Mark
Professionals (GMP)” to help
workers stay competitive by
upgrading and developing their
skills. In 2014, more than 51,800
workers have upgraded their
skills through training, a 36 per
cent increase from 2013.
Eric wants to continue upgrading himself through advanced programmes as he aspires to be certified as a
wine educator.
Singapore Labour Foundation | 19
Building
Passion
through
Placement
and Training
“The training has definitely
prepared me for my
current job and also
equipped me with the
relevant skills that I need
to do my job well. I have
become more confident
and independent.”
– Ms Maizurah Binte Hamzah, an ITE
graduate with a NITEC in Mechanical
Technology, who has benefitted from
the PnT programme
In 2014, more than 1,100 job
seekers were placed through
Devan Nair Employment and
Employability Institute’s (e2i)
Place-and-Train (PnT) and
Train-and-Place (TnP)
programmes. This included
PnT programmes for Creative
Craftsman, Digital Developers,
Digital Learning Designers,
as well as Aerospace, Marine
and Land Transport Engineers.
21-year-old Maizurah Binte
Hamzah, a graduate of the
Institute of Technical Education
(ITE) with a National ITE
Certificate (NITEC) in Mechanical
Technology, is one of the
20 | Annual Report 2014
crucial skills needed to uphold
their top quality standards. In
partnering with e2i, Makino
was able to tap on the funding
support to further enhance their
training programmes, which has
greatly benefitted employees like
Maizurah.
The Place-and-Train programme has impacted Maizurah who now looks
forward to attending more training programmes.
successful candidates of the PnT
programme.
Maizurah first joined Makino
Asia in March 2014 under
the Electronics, Precision
and Machinery Engineering
(EPME) Programme. Due to her
father’s influence, she has been
fascinated with machines since
young. She shared, “My father
is my inspiration. As a shipyard
insulator, my father works with
metals and technical equipment.
Sometimes, he will bring his work
home and build gadgets from
scratch, which truly amazed
me. He’s the reason I’m in this
industry in the first place, and my
passion developed from there.”
It runs in the family as Maizurah’s
older sister is also in the industry.
In fact, Maizurah’s sister is
also an employee of Makino;
and it was through her sister
that Maizurah first learnt about
the company that produces
machinery.
For Makino, training is the
foundation of achieving
excellence. The company
believes in growing together
with its employees through
continuous training and lifelong
learning. From the very basic
of good workmanship to highly
specialised skills of machine
building, Makino equips its
employees with the relevant and
Singapore Labour Foundation | 21
Upon recruitment by Makino,
Maizurah went through a one-year traineeship programme.
“The training has definitely
prepared me for my current job
and also equipped me with the
relevant skills that I need to do
my job well. I have become more
confident and independent,” she
explained.
For the cheerful individual, one of
the most memorable experiences
of the programme was being able
to assemble parts of the machine
from scratch. “I can’t explain in
words how happy I was to hold
the final product. It’s as if a part
of me is on the machine!”
This programme has impacted
Maizurah in more ways than one,
especially at home. “Now, instead
of my father, I’m the one who
goes around fixing things in our
house. I even fixed a leaking pipe
recently. It feels good to know
that my parents can now depend
on me,” she revealed.
Maizurah now looks forward
to attending more training
programmes which would allow
her to further improve her skills.
Better
Productivity,
Higher
Wages
Launched in August 2010, the
Inclusive Growth Programme
(IGP) promotes inclusive and
sustainable growth through
improvements in productivity,
which can be achieved through
automation and enhancements
in business operations as well
as equipping workers with the
relevant skills to boost efficiency.
The IGP also ensures the sharing
of productivity gains with workers
through higher wages.
Since its launch till March 2015,
the IGP has supported
1,680 projects from various
sectors such as cleaning,
security, landscape, as well as
manufacturing and services; and
will benefit more than 83,000
workers with productivity-led
wage increases when all the
projects are fully implemented.
One of the Small and Medium
Enterprise (SME) that has
benefitted from the IGP was
Kimly Food Holdings Pte Ltd.
“From conversations with our
cleaners, (we noted that) their
morale is low due to the labourintensive nature of their jobs and
the low salaries. Therefore, the
real challenge is how to improve
the productivity of our cleaning
team and at the same time,
provide a more attractive pay
package,” shared Mr Vincent Chia,
General Manager of Kimly Food
Holdings.
To address these challenges,
the company installed an
automated conveyor belt system
that transports soiled dishes
from the seating area to the
dishwashing area at FoodClique
at the Singapore Institute of
Management (SIM), one of the
food courts they operate.
Kimly Food Holdings Pte Ltd was one of the Small and Medium Enterprise which has benefitted from the
Inclusive Growth Programme, resulting in their workers receiving better salary packages.
22 | Annual Report 2014
Previously, one potential
bottleneck identified was the
congested corridor where people
have to pass through to access
the dishwashing area. Cleaners
had to go around the tables to
collect dirty dishes; and once
their trolleys are full, they had
to push the heavy trolleys into
the dishwashing area. This was
especially demanding for the
elderly cleaners.
With the conveyor belt system,
dirty dishes will be delivered to
the dishwashing area through
the belt while the clean ones will
be pushed out of the area on a
trolley. This essentially turned
the corridor into a one-way traffic
instead of two-way. Cleaners
also do not need to go into the
dishwashing area as often, which
greatly reduces the risks of
slip and fall caused by the wet
floors. Most importantly, there
has been a 40 per cent increase
in productivity as the system
significantly reduces the time
and effort to clear 360 tables,
from 90 to 54 man-hours.
“With e2i’s knowledge and expertise, they are able to
share with us what can be done and whether our ideas
are practical enough to be implemented on the ground.”
The impacted workers also
received a 15 per cent annual
increment from their current basic
salary. “With these productivity
gains, we started to offer our
cleaners better salary packages,
including year-end bonuses, in
order to attract and retain them,”
said Vincent.
“With e2i’s knowledge and
expertise, they are able to share
with us what can be done, and
whether our ideas are practical
enough to be implemented on the
ground,” he continued.
As a result of the success of this
IGP project, Kimly Food Holdings
plans to install this automated
conveyor belt system in other
places that they operate.
Singapore Labour Foundation | 23
– Mr Vincent Chia,
General Manager,
Kimly Food Holdings Pte Ltd
Gainsharing
from
Productivity
Boost
“Most employers don’t
really consider how higher
wages can have a positive
effect on their companies
as they are seen as high
operating costs. But from
the success of this IGP
project, we have in fact
benefitted. Our productivity
has increased and our
workers are happier.”
– Mr Terence Lee,
Director (Technical), Le Tach Pte Ltd
Another company which has
benefitted from the Inclusive
Growth Programme (IGP) is
Le Tach Pte Ltd. Providing mostly
coin-operated vending machines
in various locations around
Singapore, it faced the uphill
task of collecting and processing
countless bags of coins which had
to be manually counted and repacked into plastic bags for sale to
food courts and coffee shops.
“Demand and sale of our coins
were low due to the way it was
packaged. Our customers found
our packaging inconvenient as
it was difficult for them to check
24 | Annual Report 2014
Le Tach Pte Ltd benefitted from the Inclusive Growth Programme and can now expand its workers’ job scopes and re-deploy them to perform other duties.
and verify the amount of coins in
each bag. Because of this, we lost
several business opportunities,”
said Mr Terence Lee, Director of
Le Tach Pte Ltd.
When his former employees
resigned due to the highly
laborious and stressful nature of
the job, Terence and his partner
decided to seek better solutions
to improve their company’s
operations and work conditions.
They discovered a machine that
is able to automatically count
and wrap the coins into neat
rolls, effectively automating
what was once a tedious and
time-consuming process.
“Previously, we spent eight hours
a day to manually count, sort
and package 50,000 coins. Now,
with this machine, we only need
to spend two hours on the same
amount of coins,” he shared.
Working closely with the
Devan Nair Employment and
Employability Institute (e2i) to roll
out productivity projects or job
re-design so that workers’ jobs
become higher value as well as
Easier, Smarter and Safer, Le Tach
now processes a higher volume
of coins and its sale of coins has
increased by 150 per cent with
the improved packaging. A new
software was also installed to
auto-capture the amount of coins
being collected, capturing the data
straight into the existing accounting system.
With all these innovative
automation, the company can now
expand the workers’ job scopes
and re-deploy them to perform
other duties such as taking orders
for the coins. Le Tach also trains
its workers on how to operate and
maintain the machines. With the
productivity gain, Le Tach gave
Singapore Labour Foundation | 25
seven of its workers an annual
wage increment of between
$240 to $300, as well as introduced
a new commission structure.
“Most employers don’t really
consider how higher wages can
have a positive effect on their
companies as they are seen as
high operating costs. But from
the success of this IGP project,
we have in fact benefitted. Our
productivity has increased
and our workers are happier,”
Terence highlighted.
Administrative Supervisor Mr
Lee Thiam Beng was one of the
employees who has benefitted
from the company’s productivity
gainsharing initiative. He said,
“I am much happier at my job now
as it is definitely less stressful and
my salary is higher than it was
back then.”
SLF strongly supports leadership capability building and development.
In close partnership with the Ong Teng Cheong Labour Leadership Institute
(OTCi), a total of $2.5 million was contributed by SLF towards union leadership
development in Financial Year 2014.
SLF funded 4,177 training places for various union leadership courses and
co-funded 3,257 places for conferences, dialogues, seminars and other
engagement activities in 2014.
26 | Annual Report 2014
Dialogues
with National
Leaders
The Dialogue with National Leaders Series provided valuable opportunities for unionists to interact with national
leaders over current issues.
Committed to actively engage
union leaders, the OTCi organised
the Dialogue with National Leaders
Series which provided valuable
opportunities for unionists to
interact with national leaders
over current issues. This series of
dialogue sessions also served as
a channel for workers to convey
ground sentiments and concerns
over a wide range of labour issues
through the union leaders.
Five fruitful sessions with national
leaders were held in 2014. Each
session touched on current
key issues affecting workers
ranging from cost of living to job
opportunities:
-
Health Minister Gan Kim Yong
on healthcare topics such
as Medishield Life, Pioneer
Generation package; and how
the unions could play a more
proactive role in reaching out
and educating members on
workplace health and active
lifestyle.
-
National Development Minister
Khaw Boon Wan on housing
concerns such as the Lease
Buyback Scheme and the
use of Central Provident
Fund (CPF) for housing and
mortgages.
-
Trade and Industry
Minister Lim Hng Kiang on
the important role of the
manufacturing and service
industries in creating jobs
in Singapore; and the
significance of Singapore’s
tripartite system in attracting
foreign investments and
promoting economic growth.
-
Then Manpower Minister
Tan Chuan-Jin on changes to
the Employment Act, extension
of protection for Professionals,
Managers and Executives
(PMEs); as well as retirement
and re-employment of older
workers.
-
Finance and Transport Senior
Minister of State Josephine Teo
Singapore Labour Foundation | 27
on Budget 2014, as well as
concerns on rising healthcare
and transportation costs.
Union leaders also had opportunity
to interact with Prime Minister
Lee Hsien Loong in a closed-door
session in August 2014. Issues
relating to the Pioneer Generation,
career progression opportunities
for non-graduate workers, CPF and
re-employment took centre stage.
Other panellists included then
Manpower Minister Tan Chuan Jin,
National Development Minister
of State Desmond Lee, NTUC
President Diana Chia,
then NTUC Secretary-General
Lim Swee Say, and NTUC Deputy
Secretary-General Heng Chee How.
Through these dialogue sessions,
union leaders were able to share
their views and concerns of the
ground and gained informative and
useful insights of national policies,
thus enabling them to play a more
effective role in explaining key
issues to their fellow workers at the
workplace.
Tributes to
the Pioneer
Generation
Union
Leaders
at UNITE
Leadership
Summit 2014
The UNITE Leadership Summit 2014 honoured the Pioneer Generation
unionists for their pivotal roles in the post-war years of Singapore.
Held at the Devan Nair Institute
for Employment and Employability
on 21 November 2014, the
UNITE Leadership Summit 2014
honoured the Pioneer Generation
(PG) unionists, for the pivotal
roles that they played in tackling
turbulent labour issues such
as massive unemployment,
confrontational trade unionism
and deprived working conditions
in the post-war years of
Singapore; as well as building a
strong foundation for industrial
peace so that workers can have
better jobs and better lives.
Hosted by NTUC President
Diana Chia and then NTUC
Secretary-General Lim Swee Say,
it was attended by 130 PG union
leaders from 41 unions including
Mr Lim Boon Heng, the longest
serving NTUC Secretary-General
from 1993 to 2006; Mr John De Payva,
the longest serving NTUC
President from 1997 to 2011;
Mr Oscar Oliveiro, a founder
member of the Pioneer Industries
Employees’ Union (PIEU) in 1963
and NTUC President during the
1985 recession; as well as over
400 current union leaders and
staff. Several founding members
of unions and prominent leaders
were honoured at the event for
their invaluable contributions and
sacrifices.
The PG union leaders were also
applauded for coming forward to
champion for change that helped
to improve the lives of workers.
“When I first got involved as
a union leader, my main task
was to protect our members
from being victimised, as
well as to negotiate for better
wages and working conditions.
Someone had to do the job. We
(unionists) had problems with
the management who always
labelled us as trouble makers.
Today, our leadership style, which
is through consultation rather
than confrontation, has allowed
management to recognise and
understand the role of the Labour Movement,” shared
Mr Abdullah Talib, founding
member and first GeneralSecretary of the Building
Construction And Timber
Industries Employees’ Union
(BATU).
Holding the event at Jurong
was symbolic as Jurong was
Singapore’s first industrial estate
and its growth and development
mirrored the success of Singapore
over the last 50 years. It also
sparked the country’s successful
industrialisation and addressed the
high unemployment rate faced by
Singapore during that period of time.
“The union has come a long way, and it has all stemmed
from the sweat and sacrifices of our union leaders. We
should continue to encourage the next generation of union
leaders to keep up the good work of tripartite relations.”
– Mr Eng Toh Hui, Pioneer Generation Leader of
National Transport Workers’ Union (NTWU)(1981 – 1987)
28 | Annual Report 2014
As a key partner in tripartism, the Labour Movement (LM) effectively represents the
workers in Singapore, as well as proactively addresses the needs and concerns of
an increasingly diverse profile of workers, their families and the communities in a
dynamic environment.
In view of the growing union membership and the formation of more union branches,
SLF contributed $4.4 million to the LM in 2014 to enhance industrial relations
capability. With its current strength of 140 Industrial Relations Officers (IROs), the LM
is better placed to serve the unions on industrial relations issues and work with the
unions to forge better alignment with the LM.
The LM has grouped its affiliated unions and association into 12 clusters. Unions
in the same cluster share similar challenges in business, manpower and regulatory
framework. This cluster strategy enables the LM to delve into pressing issues,
provide more targeted solutions, and deliver better results. Unions in a cluster can
also collectively engage the tripartite partners in a more effective manner, to get
them on board to improve the skills, productivity, wage and career of workers, as
well as advance workers’ interests at the workplace.
Singapore Labour Foundation | 29
Passion for
Making A
Difference
Mr Fong Yoong Kheong enjoys
interacting with others and after
graduating from university, he knew
he wanted a job where he could
interact with people on a daily
basis. This led him to discover the
Industrial Relations (IR) position
offered by the National Trades
Union Congress. “I enjoy the kind of
work where I am able to help other
people, and address their concerns
and feedback,” he said.
Currently a Senior IRO for the
Chemical Industries Employees’
Union (CIEU), Yoong Kheong
engages workers and union
members from all walks of life.
In addition to IR-related work,
he is the Secretary for CIEU’s
Membership Sub Committee and
the Cluster Specialist of the NTUC
Marine Engineering Cluster.
“People often tell me that all jobs
require you to interact with others,
such as working in a bank. But to
me, being an IRO is more than just
about interacting with people. It is
a job where you have to view and
treat every single person you come
across as a human being, and not
as statistics or numbers. These are
real people with real stories, and
they depend on us for help,” he
explained.
Yoong Kheong also shares
with union leaders the relevant
information related to industrial
relations, employment rights and
legislation; and works closely
with union leaders to provide the
necessary assistance to union
members.
When asked how he continues to
deliver his best at work, he replied,
“Being an IRO is more than just about interacting with
people; it is a job where you have to view and treat every
single person you come across as a human being, and
not as statistics or numbers. These are real people with
real stories, and they depend on us for help.”
- Mr Fong Yoong Kheong, Senior Industrial Relations Officer,
Chemical Industries Employees’ Union
“It’s important to keep updated on
issues that affect, or could potentially
affect, the industry and workers at
large. This will be useful when we
communicate with workers, and help
them understand national policies
and schemes.”
He recalled an interesting case of a
company that was non-unionised.
“We were giving flyers out to the
workers as they were coming out of
the gates, to try and encourage them
to join our union. We did this for a
few times without much success.”
To Yoong Kheong, IROs also
play a part in getting the workers’
voices heard by the management,
together with the union leaders. “It
is a role that I take seriously. When
workers, especially rank-and-file
workers, stand alone in front of their
management, they are just one
person. But when the union comes in
to band together with them, it gives
them a voice that can speak at equal
level with the management, and
that’s when feedback will be taken
seriously and grievances can be
resolved amicably.”
He continued, “When one of the
supervisors was terminated, he got
in touch with us and we were able
to assist him. His was a genuine
case of unfair termination, which we
then wrote an appeal to the Ministry
of Manpower. In the end, with the
workers’ support, the company was
unionised.”
For Yoong Kheong, his greatest job
satisfaction is knowing that he has
been able to make a difference,
and that he has made someone’s
life better.
30 | Annual Report 2014
Committed
to Protecting
Vulnerable
Workers
Miss Lim Yeu Ai, a Senior
Industrial Relations Officer (IRO)
for the Attractions, Resorts &
Entertainment Union (AREU),
works together with union
leaders of the different unionised
companies to look after the
welfare of the union members.
Her work involves collective
bargaining, such as negotiation
for wage increases and bonuses,
as well as dealing with individual
and collective grievances at the
workplace.
“I admire our union leaders.
Union leaders are basically
ordinary workers who took on
the extra responsibility to be the
voice of their fellow workers. As
this is done on a voluntary basis,
this means that these leaders
are willing to do so because they
have the passion to be the voice
that reflects ground sentiments
and concerns on behalf of their
members. So on our part, we do
our best to support them in any
way we can.”
“As practitioners of industrial
relations, we have access
to crucial information and
valuable resources such
as contact points with the
Ministries. We can utilise
these resources to channel
ground issues and concerns
to the relevant Ministries or
the statutory bodies. In this
way, we’ll be able to look out
for these groups of workers.”
For Yeu Ai, who has an
educational background in
sociology, the rights of vulnerable
workers is an issue that is close
to her heart. “As our country
moves forward, there’s a segment
of society that seems to be a little
- Ms Lim Yeu Ai,
Senior Industrial Relations Officer,
Attractions, Resorts & Entertainment Union
Singapore Labour Foundation | 31
bit left behind. These are the
vulnerable workers who do not
have the foundation of education
or access to information.”
She shared further, “For example,
when we are at a food court, we
don’t think twice about the worker
clearing our plates. But he could
be paid a pittance, or he doesn’t
even know that his pay is not
supposed to be docked for
taking medical leave. I feel that
we, as a society, really need to
pay attention to these workers
and ensure that they have
their basic employment rights
covered.”
What Yeu Ai likes most about
her job as a Senior IRO is that it
offers her the ability to make an
impact in other people’s lives and
help them change for the better.
“Our jobs are definitely important
in helping the vulnerable workers.
As practitioners of industrial
relations, we have access to
crucial information and valuable
resources such as contact points
with the Ministries. We can utilise
these resources to channel
ground issues and concerns
to the relevant Ministries or the
statutory bodies. In this way,
we’ll be able to look out for these
groups of workers.”
As a Principal Member of NTUC Enterprise Co-operative Limited, SLF continues to
support NTUC Enterprise in delivering its strategic intent of sharpening the social
impact of the NTUC Social Enterprises (SEs). As Singapore society evolves, the
NTUC SEs continue to demonstrate their commitment to meet the changing needs
of working families in Singapore through the provision of daily essentials, cooked
food, health and community care, childcare and continuing education, as well as
financial services.
32 | Annual Report 2014
Driving
Social
Outcomes
Moderating Cost of Living
Cost of living remains one
of the greatest concerns for
Singaporeans. To address their
concerns, NTUC Fairprice Co-operative Limited, Singapore’s
largest retailer, has been providing
affordable groceries and essentials
to families since 1973. NTUC
Foodfare Co-operative Limited also
offers affordable and nutritious
meals at its food courts, coffee
shops and food stalls. By end of
2015, Foodfare will begin operating
the Bukit Panjang Hawker Centre to
bring quality and affordable hawker
fare to the residents.
In addition, NTUC Link’s loyalty
programme, Plus!, brings more
savings and lifestyle benefits to
working families where they can
use the LinkPoints, accumulated
from their everyday expenditure
on goods and services, to offset
purchases made at more than
1,000 merchant outlets.
Quality and Affordable
Healthcare
In addressing the healthcare
needs of an ageing population,
NTUC Health Co-operative Limited
was formed on 1 July 2014 to
bring together the expertise and
experience of NTUC Eldercare Co-operative Limited and
NTUC Unity Healthcare Co-operative
Limited. In 2014, NTUC Health
set up its first Silver Circle Senior
Care Centre, as well as the Unity
Family Medicine Clinic (FMC), in
collaboration with the National
Healthcare Group, at Serangoon
Central. The Senior Care Centre
offers health and social care
services, including day care,
rehabilitation and nursing services;
while the Unity FMC provides
Singapore Labour Foundation | 33
affordable and quality medical care
to help elderly residents actively
manage their chronic diseases.
Enriching Lives Through
Quality Education
To meet increasing demand for
pre-school education, NTUC First
Campus Co-operative Limited has
grown its capacity to cater to more
than 13,000 pre-school children
across 125 childcare centres in
Singapore. To ensure that children
from all income groups have a
good start in life, My First Skool, the
pioneer childcare arm of NTUC First
Campus, has set aside 15 per cent
of its places for children from low
income families.
A champion for lifelong learning,
NTUC LearningHub Co-operative
Limited provides a suite of
Continuing Education and Training
(CET) courses that empower
working adults to achieve career
mobility by upskilling and reskilling
themselves. Since its inception in
2004, LearningHub has trained
more than 1.6 million executives
and working adults.
Plan for the Future
As one of the largest general
insurers and health insurance
providers, NTUC Income
Insurance Co-operative Limited
helps Singapore workers prepare
for life’s uncertainties through
providing honest insurance. In
2014, NTUC Income set up the
Raffles Client Advisory Centre at
Clifford Centre, in response to the
growing number of Professionals,
Managers and Executives (PMEs),
to provide them with financial
advice so that they may achieve
financial stability.
Thank You Pioneers!
In October 2014, the NTUC SEs
came together to launch a 15-month
“Pioneers OK!” programme to
honour and thank our pioneers for
their hard work and dedication.
Complete with discounts and
preferential treatment for pioneers,
the programme consists of retail
offers in three components:
Pioneers Monday, Pioneers Priority
and Pioneers Exclusives, as well as
on-going activities and workshops
along the themes of daily essentials,
cooked food, healthcare and
learning. Since its launch, 175,000
pioneers and other seniors have
saved up to over $111,000 per
week on their purchases.
Mr Tan Suee Chieh, Group Chief
Executive of NTUC Enterprise,
said, “The Pioneers OK!” package
exemplifies the distinct NTUC Social
Enterprises’ way of harnessing
our collective strength to deliver
impact for pioneers that will touch
every aspect of their daily lives in our supermarkets, food courts,
pharmacies, dental clinics, and
insurance branches. We hope that
with the little something we are
offering, the pioneers’ experience
at our social enterprises will be
enhanced and made sweeter.”
The NTUC Social Enterprises launched the 15-month “Pioneers OK!” programme to honour and thank our pioneers
for their hard work and dedication.
34 | Annual Report 2014
Transforming
Young Lives
As a renowned and trusted early
childhood care and education
service provider in Singapore,
NTUC First Campus continues to
inspire lives with its social mission
of providing quality and affordable
early childhood care and
education services for families.
Through its network of childcare
centres which include My First
Skool, The Little Skool-House
International and The Caterpillar’s
Cove, as well as SEED Institute
which is an early childhood
education training institute, First
Campus strives to bring out the
best in every child as well as
build a strong community of early
childhood professionals working
together to support the early
development of young children.
In 2014, NTUC First Campus
set up its second SEED Institute
(West Campus) to help enhance
the capabilities of early childhood
professionals in Singapore. The
institute is sited together with
First Campus’ second child
development and study centre,
The Caterpillar’s Cove @ Jurong
East at the Devan Nair Institute for
Employment and Employability.
Built at a combined cost of $1.85 million, the strategic co-location of these two facilities
opens up exciting possibilities for
mutual collaboration, and enables
early childhood professionals
and researchers to have greater
access to an authentic pre-school
environment to further their
studies and research on early
childhood issues. It also presents
an excellent opportunity for SEED
Institute to further strengthen its
practice-oriented programmes
and equip its trainee-teachers
with greater competency and
better job readiness before they
NTUC First Campus set up its second SEED Institute (West Campus) to
help enhance the capabilities of early childhood professionals in Singapore.
join the sector. With the opening
of this second campus, SEED
Institute will be able to train
an additional 1,600 pre-school
teachers every year, providing a
significant boost to the sector.
In partnership with The Lien
Foundation, The Caterpillar’s
Cove @ Jurong East was set
up with the primary objective of
spearheading innovations that
could set new benchmarks in
early childhood education.
“We look forward to building a
vibrant community of educators
and parents committed to the
development of our young
children. Working together, we
can advance the principles
and practice of early childhood
education in Singapore,” said
Mr Lee Poh Wah, Chief Executive
Officer, Lien Foundation.
One breakthrough in the new
centre is the environment design
of the centre, which is inspired
by the belief that the learning
environment should stimulate a
child’s imagination and creativity.
Some unique design features
include innovative seating
that promotes teacher-child
interaction, and ergonomicallydesigned furniture.
Reflecting First Campus’
commitment to provide high
quality pre-school education
for all, regardless of their social
or economic status, ten to 15
per cent of the places available
at The Caterpillar’s Cove will
be reserved for children with
disadvantaged backgrounds.
“We look forward to building a vibrant community of
educators and parents committed to the development of
our young children. Working together, we can advance
the principles and practice of early childhood education
in Singapore.”
Singapore Labour Foundation | 35
– Mr Lee Poh Wah, Chief Executive Officer, Lien Foundation
Providing
Protection
From Life’s
Uncertainties
“NTUC Income developed SpecialCare (Down Syndrome)
as part of our social mission to make essential insurance
accessible and affordable. That was one of our foundational
purposes and it is a commitment we made that is part of
our corporate DNA today.”
– Mr Ken Ng, Chief Executive of NTUC Income
Insurance Made Different
For over 40 years, NTUC Income
has remained fully committed to
its social purpose of providing
essential insurance which are
affordable, accessible and
sustainable to all. With products and
services catering to a wide range
of needs and which benefit workers
regardless of financial standing,
the NTUC social enterprise has
spared no effort in reaching out to
all segments of society.
In December 2014, NTUC Income
launched the SpecialCare (Down
Syndrome), the only insurance
policy in the market designed for
children and youths between the
age of 15 days and 30 years old,
with Down Syndrome. It is the
second insurance programme in
NTUC Income’s SpecialCare series
after its inaugural SpecialCare
(Autism) which was unveiled in
August 2013.
The policy was a welcome relief
for many, including Ms Margaret
Goh, whose 20-year-old son has
Down Syndrome. “The premium is
affordable and it will definitely help
to relieve some financial burden in
the event of a medical crisis that
requires hospitalisation or post
care,” she said.
Offering Peace of Mind for a
Safer Ride
Road safety for motorcyclists is
becoming a rising concern. They
have been identified as the most
vulnerable on the road and most
prone to serious injuries or death in
the event of accidents. In July 2014,
NTUC Income committed $500,000
over two years in OrangeSafe,
a free defensive riding course
for all its motorcycle insurance
policyholders, to cultivate safer
riding habits among motorcyclists
and reduce the number of
casualties on the road.
Under OrangeSafe, motorcyclists
can undergo a half-day course
at either the Bukit Batok Driving
Centre or ComfortDelGro Driving
Centre. The course includes theory
lesson on safe riding factors and
accident forecast training, circuit
learning pre-ride checks, proper
riding posture, braking techniques
and skills training. Upon completion
of the course, participants will
receive a 10 per cent discount
off their annual premiums when
they renew their policy with
NTUC Income. This is in addition to
other discounts such as No Claim
Discount and Loyalty Discount.
With an average of more than
seven per cent of NTUC Income’s
motorcycle policyholders making
accident claims from 2011 to 2013,
this customer-centric initiative
offered without charge to all
NTUC Income motorcycle
insurance policy holders will help
them to stay safer on the road.
“NTUC Income developed
SpecialCare (Down Syndrome) as
part of our social mission to make
essential insurance accessible and
affordable. That was one of our
foundational purposes and it is a
commitment we made that is part of
our corporate DNA today,” said
Mr Ken Ng, Chief Executive of
NTUC Income.
The annual premiums for
SpecialCare (Down Syndrome)
start as low as $198, renewable
up to the age of 75. The policy
plan provides outpatient medical
and hospitalisation coverage due
to accidents and 17 infectious
diseases.
OrangeSafe is a free defensive riding course offered by NTUC Income for
all its motorcycle insurance policyholders.
36 | Annual Report 2014
Making A
Difference
to the
Community
“FairPrice is privileged to
organise this event that
actively promotes family and
community bonding as
well as healthy living - two
important aspects in building
a strong and cohesive nation.
Furthermore, the event also
enables participants to do
their part for the community.”
– Mr Bobby Chin, Chairman of NTUC
FairPrice and NTUC FairPrice Foundation
Since its establishment in 1973,
NTUC Fairprice has dedicated
itself to upholding its social mission
of moderating the cost of living in
Singapore. In line with its aspiration
as Singapore’s leading retailer
with a heart, it set up FairPrice
Foundation in 2008 to provide
a more effective structure to
FairPrice’s corporate contributions
to causes that are aligned with its
social mission.
Amidst the economic slowdown
in 2002, FairPrice launched the
FairPrice Food Voucher Scheme to
provide daily essentials to
low-income families. Since then, it
has worked closely with grassroots
and welfare organisations to
identify and reach out to less
privileged families and individuals
with such needs. To date, the
FairPrice Food Voucher Scheme
has contributed $13.2 million worth
of FairPrice vouchers, benefitting
more than 20,000 low-income
families through 87 grassroots
organisations and selected welfare
organisations in Singapore.
In 2014, FairPrice held its annual
FairPrice Walks With U event
which is Singapore’s largest family
walking event aimed at promoting
family bonding and healthy living.
6,000 participants took part in
the 5-km walk starting from the
Promontory @ Marina Bay. To
engage participants and provide
them with an opportunity to do
their part to help the less fortunate,
FairPrice Foundation pledged to
donate $100 in food vouchers for
each registered participant, which
amounted to $600,000. FairPrice
also pledged an additional $10 in
FairPrice vouchers to the FairPrice
Food Voucher Scheme for every
social media post that carried the
official hashtag #fairpricewalk.
Inspired by the enthusiastic
response received, FairPrice
Foundation increased its pledge
to $1 million for the FairPrice Food
Voucher Scheme.
Mr Bobby Chin, Chairman of
NTUC FairPrice and NTUC
FairPrice Foundation said,
“FairPrice is privileged to organise
this event that actively promotes
family and community bonding as
well as healthy living – two important
aspects in building a strong and
cohesive nation. Furthermore, the
event also enables participants to
do their part for the community.”
Chairman of NTUC FairPrice and FairPrice Foundation, Mr Bobby Chin (second from right) presented the
cheque to Guest-of-Honour, Mr Chan Chun Sing (centre), then Minister for Social and Family Development and
Second Minister for Defence.
Singapore Labour Foundation | 37
Since its establishment in February 2009, the NTUC-U Care Fund consolidates the
Labour Movement’s fund-raising initiatives to provide a helping hand to improve
the lives of low-income union members and their families.
In 2014, SLF contributed $3.5 million to the NTUC-U Care Fund in support of its
various assistance programmes.
38 | Annual Report 2014
A Welcomed
Relief During
Times of
Need
Madam Mageswari d/o Manikkan,
who works as a Senior Office
Assistant for the Housing and
Development Board (HDB), has
experienced her fair share of tough
times. As a single parent of two
children, she is the sole breadwinner
of her family.
“It’s not easy being a single parent.
Other than the financial challenges,
there is also the challenge of
looking after my children as I have
to work most of the time to support
my family,” she shared.
“With these vouchers, I was able to
save some money which can pay for my
children’s higher education in future.”
– Madam Mageswari d/o Manikkan,
Beneficiary, NTUC-U Care Fund
She recalled, “I tried my best to
manage and thankfully, I did receive
some help from my relatives as well.
But it is still a struggle to make ends
meet.”
Fortunately, as a union member
of the Housing and Development
Board Staff Union (HDBSU), she
learnt about the U Care Assistance
Programmes through HDB’s intranet
system. “I immediately enquired
with my union to ask if I was eligible
to apply for assistance and they
encouraged me to do so.”
Singapore Labour Foundation | 39
The U Care Assistance
Programmes provided a much
needed helping hand to Madam
Mageswari. She received vouchers
which helped to alleviate her
financial burden. “The U Stretch
vouchers were very useful,
especially when money was tight
at the end of the month. Thanks to
the vouchers, we were able to buy
essential groceries.”
The U Stretch Voucher Programme
is one of NTUC-U Care Fund’s core
assistance programmes which
A Helping
Hand during
Adversity
NTUC Eldercare Trust
provides relief to union members
by helping to stretch their dollar
on daily necessities. Each voucher
provides a $2.50 discount with
every $5 purchase at participating
NTUC Social Enterprises.
The NTUC Eldercare Trust
supports and promotes the
psychological and emotional
welfare of the elderly through
NTUC Health’s community-based
facilities and services.
In 2014, $2.06 million worth of
vouchers were disbursed to 23,900
low-income union members and
their families. It helps to maximise
their daily expenditure and eases
the burden of rising living cost.
Union members receive either
$50 or $100 worth of vouchers,
depending on their eligibility.
The initiatives include enhancing
day care and home care services,
as well as fee subsidies for lower to
middle income families who enrol
their parents in NTUC Health’s day
care or senior care centres. In 2014,
the NTUC-U Care Fund contributed a sum of $1 million to NTUC Eldercare
Trust, benefitting a total of ten Silver
Circle day care and senior care
centres.
Madam Mageswari also received
the U Care Back to School vouchers
which helped her cope with her
children’s school expenditures.
With the vouchers, low-income
union members were able to defray
the cost of their children’s school
expenses on textbooks, school
uniforms, stationery, school shoes,
spectacles and other school-related
items for the new school year. In
2014, $3.27 million worth of U Care
Back to School vouchers were
distributed to over 26,100 union
members’ school-going children.
Each eligible child received $125
worth of vouchers.
Madam Mageswari strongly
believes in the importance of
education, which is something
that she instils in her two children.
“School expenses can be very high.
With these vouchers, I was able to
save some money, which can pay
for my children’s higher education
in future.”
NTUC First Campus
Bright Horizons Fund
The NTUC First Campus Bright
Horizons Fund (BHF) provides
financial assistance to children
of low-income families, as well
as supports literacy and learning
intervention programmes for
beneficiaries at My First Skool
childcare centres.
In 2014, the NTUC-U Care Fund
contributed $520,000 to the BHF,
benefitting 1,210 children from
low-income families.
NTUC GIFT
NTUC GIFT is a group term
life insurance policy that is
available exclusively for union
members of NTUC-affiliated
unions and association. All
union members below 65 years
old are automatically covered
against death and permanent
disability up to the sum assured
of $30,000.
Spouses of members below 65
years old are also covered up to
the sum assured of $500, subject
to the member meeting the
eligibility criteria. Members who
are 65 years and above may be
eligible for extended coverage if
they meet the membership tenure
criteria. Union leaders are eligible
for double sum assured.
A total payout of $3,880,750 to
839 claimants was made under
NTUC GIFT in Financial Year 2014.
SLF supports NTUC GIFT with an
annual contribution of $0.9 million.
SLF Hardship Grant
Started in 1979, the SLF
Hardship Grant provides financial
assistance to low-income union
members or their next-of-kin in
the event of the member’s death,
permanent incapacity, chronic
illness and hardship, arising from
circumstances of a non-industrial
nature.
A total of 203 union members
or their next-of-kin received
assistance amounting to
$203,000 in Financial Year 2014.
40 | Annual Report 2014
Singapore Labour Foundation | 41
Engaging
Our
Membership
Communities
A New Tripartite Hub
For Bonding
The Orchid Country Club (OCC)
remains committed to its role
to broaden and deepen its
engagement with the LM, unions
and NTUC Social Enterprises (SEs)
by serving as the primary venue
for golfing events and meetings,
as well as social and recreational
activities.
On 27 July 2014, the Tripartite
Hub @ OCC was officially opened
by Emeritus Senior Minister Goh Chok Tong. The launch
was held in conjunction with
the 21st Tripartite Golf Friendly,
a yearly highlight among the
National Trades Union Congress
(NTUC), the Singapore National
Employers Federation (SNEF) and
the Ministry of Manpower (MOM)
to foster greater rapport among
union leaders, employers and
government officials.
An extension of the existing Par
Lounge at the Golf Clubhouse,
the Hub is well-equipped to host
discussions or informal meetings
to engage tripartite and bipartite
partners.
The Hub is a testament of the
Club’s close working relationship
with tripartite partners over the past
two decades and reiterates OCC’s
commitment to plan even more
engagement activities for the LM.
2014 also saw a series of exciting
‘firsts’, as the Club organised
and hosted various inaugural
golfing events such as the Union
Invitational Golf Friendly, the The Tripartite Hub @ OCC, was officially opened by Emeritus Senior Minister
Goh Chok Tong on 27 July 2014.
U Care-OCC Charity Golf 2014 and the OCC May Fest 2014.
Reaching Out Through Sports
The Aranda Country Club (ACC)
continues to reach out to union
members through its sports and
recreational activities, as well as
the usage of its facilities.
In 2014, ACC has reached out to
76,162 union members and ACC
members through its various
Sports Interest Groups (SIGs) such as running, bowling, golfing
and cycling.
Engagement Through
Social Media
daily lives, the LM has effectively
created greater online awareness
and better understanding of the
LM’s roles, programmes and
initiatives for workers.
Through constructive online
discussions and dissemination
of current and key labour-related
issues, the LM was able to
increasingly reach out to and build
ongoing relationships with a wider
group of online communities. SLF’s
provision of a total grant of $6 million from Financial Year 2012
to 2015 has enabled the LM to
strengthen the relevant capabilities
to achieve its objective of engaging
workers through a myriad of social
media platforms.
Recognising the increasing
importance of social media in our
42 | Annual Report 2014
Showing Our
Appreciation
to All
Workers
To promote a more inclusive
society and to raise awareness
on the contributions of low-wage
workers to our society, SLF
contributed a $2 million fund to
support the Labour Movement’s
(LM) ‘Appreciating U’ movement
over a period of two years.
The ‘Appreciating U’ campaign
was launched nationwide in June
2014 to encourage employers and
the general public to show more
care and appreciation for workers
from all walks of life and at all
levels. Spearheaded by the NTUC
U Care Centre, a series of groundup activities and initiatives were
planned and rolled out for workers
across the different sectors of
Singapore’s workforce.
Starting with the cleaning
industry, the movement’s launch
was officially marked by an
appreciation lunch served by
union leaders to 115 cleaners from
the Housing and Development
Board Hub, public streets
and town councils. 30 of them
were also honoured for their
outstanding work performance
and presented with recognition
certificates by then NTUC
Secretary-General (SG) Lim
Swee Say. Other initiatives
included the first-ever ‘Tribute
To Cleaners 2014’ selfie contest,
a Facebook contest where the
public could upload photos
honouring their cleaners; and the
‘Appreciating U – Our Cleaners’
Awards to recognise exemplary
cleaners, cleaning companies
and their service buyers, as well
as the public who have shown
noteworthy appreciation for
their cleaners. Since June 2014,
more than 200 organisations,
including private companies,
Government agencies, town
councils and educational
institutions have pledged to show
their appreciation to more than
30,000 cleaners through various
appreciation events under this
ongoing campaign.
Said then SG Lim, “We are not
stopping with cleaners. We will
reach out to more groups of
“We are not stopping with
cleaners. We will reach out
to more groups of workers
to recognise their efforts and
make their job a better job.”
– then NTUC Secretary-General
Lim Swee Say
Singapore Labour Foundation | 43
workers to recognise their efforts
and make their job a better job.
And this year will be the year of
breakthrough with the adoption
of the Progressive Wage Model
for the cleaning, security and
landscape workers.”
Following the appreciation
campaign for cleaners,
representatives from NTUC U Care
Centre and the Union of Security
Employees (USE) honoured the
men and women working in the
security industry as part of LM’s
‘Appreciating U – Our Security
Officers’ initiative in October 2014.
They visited the security officers
at their worksites and presented
them with appreciation packs.
“Our officers are the first line
of defence in the case of an
emergency. For instance, if there
is a fire in a building, security
officers are the ones we would
seek help from. We therefore
came up with the ‘Appreciating
U – Our Security Officers’ initiative
as a way to appreciate them
for all the hard work they are
doing,” said USE President,
Mr Hareenderpal Singh.
Honouring
Our Pioneers
‘Appreciating U – Our Pioneers’ was also an SG50 milestone celebration
to honour our Pioneer Generation.
To thank the pioneer generation
of union leaders and union
members who have contributed
to the formation of trade unions
and established the foundation
of tripartism in Singapore, SLF
contributed $250,000 to the
Labour Movement (LM) in support
of its first 1960s-themed mega
celebration ‘Appreciating U – Our
Pioneers’ held at the Promontory
at Marina Bay on 28 June 2014.
The event was also in line with
LM’s nationwide ‘Appreciating
U’ movement to appreciate all
working people, as well as an
SG50 milestone celebration to
honour our Pioneer Generation for
their contributions to Singapore’s
early days of nation-building.
7,000 Pioneer Generation union
members and their families
gathered at the 1960s-themed
event, where their children and
grandchildren had the opportunity
to experience old school carnival
games and activities, traditional
performances and snacks, as
well as an exhibit that showcased
replicas of vintage items.
During the event, then NTUC
Secretary-General (SG)
Lim Swee Say also announced
the slew of special privileges for
Pioneer Generation by
NTUC Social Enterprises, such
as NTUC FairPrice, NTUC Income,
NTUC Health, NTUC Foodfare,
NTUC First Campus and
NTUC Eldercare, from October 2014
till the end of 2015.
“We have come a long way in 50
years. As we celebrate SG50, our
biggest “Thank you” must go to our
Pioneer Generation of workers and
unionists. If not for them, we won’t be
working and living in the Singapore
of today,” said then SG Lim.
44 | Annual Report 2014
Singapore Labour Foundation | 45
Singapore
Labour
Foundation
Business
Clusters
Boards of
Directors
(As at 30 April 2015)
EMPLOYMENT AND EMPLOYABILITY INSTITUTE PTE LTD
Ong Ye Kung
Philip Su
Anna Chan
Boon Yoon Chiang
Ng Cher Pong
Tan Kai Hoe
Kung Teong Wah
Roland Ng
Adeline Sum
Gilbert Tan
Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director &
Chief Executive Officer
EMPLOYMENT & EMPLOYABILITY INSTITUTE PTE LTD
AUDIT & RISK COMMITTEE
Philip Su
Chairman
Boon Yoon Chiang
Member
Ng Cher Pong
Adeline Sum
Member
Member
EMPLOYMENT & EMPLOYABILITY INSTITUTE PTE LTD NOMINATING COMMITTEE
Anna Chan
Ong Ye Kung
Chairman
Tan Kai Hoe
Member
Member
SLF STRATEGIC ADVISERS PRIVATE LIMITED
Tan Hwee Bin
Lim Boon Heng
Stephen Lee
Adeline Sum
David Poh
Lim Li Ying
Chairman
Director
Director
Director
Adelene Tan
Director
Director
Executive Director &
Chief Executive Officer
46 | Annual Report 2014
SLF LEISURE ENTERPRISES (PTE) LTD
Lim Jit Poh
Chong Kee Hiong
Lee Suan Hiang
John De Payva
Lim Kuang Beng
Terry Lee
Yeo Khee Leng
David Poh
Chairman
Director
Director
Director
Director
Director
Director
Director
SLF LEISURE ENTERPRISES (PTE) LTD AUDIT & RISK COMMITTEE
Lee Suan Hiang
John De Payva
Chairman
Yeo Khee Leng
Member
Member
SLF LEISURE ENTERPRISES (PTE) LTD ESTABLISHMENT COMMITTEE
Chong Kee Hiong
Chairman
Lee Suan Hiang
Member
Yeo Khee Leng
David Poh
Member
Member
ORCHID COUNTRY CLUB GENERAL COMMITTEE
Chong Kee Hiong
Tan Ah Ee
Susan Gan
David Poh
Oscar Oliveiro
Lim Kuang Beng
Terry Lee
Chng Chee Beow
Yeo Khee Leng
Gong Wee Lik
Chua Bor Jern
Gilbert Tan
President
Captain
Treasurer
Lady Captain
Member
Member
Member
Member
Member
Member
Member
Member
Peter Goh
Secretary & General Manager
PASIR RIS RESORT PTE LTD
Lim Jit Poh
Lee Suan Hiang
Chong Kee Hiong
Yeo Khee Leng
Ong Hwee Liang
David Poh
Chairman
Director
Director
Director
Singapore Labour Foundation | 47
Director
Director
John De Payva
Director
PASIR RIS RESORT PTE LTD AUDIT & RISK COMMITTEE
Yeo Khee Leng
Lee Suan Hiang
Chairman
John De Payva
Member
Member
PASIR RIS RESORT PTE LTD ESTABLISHMENT COMMITTEE
Chong Kee Hiong
Chairman
Lee Suan Hiang
Member
Yeo Khee Leng
David Poh
Member
Member
ARANDA COUNTRY CLUB GENERAL COMMITTEE
Lee Suan Hiang
Vincent Fong
David Poh
Peter Goh
President
Member
Treasurer
Ong Hwee Liang
Member
Secretary & General Manager
SLF PROPERTIES PTE LTD
Goh Chee Wee
Chairman
Willy Shee
David Poh
Willy Shee
David Poh
Director
Director
OMB PTE LTD
David Wong
Chairman
Director
Director
SLF AMK PTE LTD
David Poh
Director
Rita Lau
Director
SLF INTERNATIONAL PTE LTD
Goh Chee Wee
Director
David Poh
Director
48 | Annual Report 2014
Membership
Listing
(As at 30 April 2015)
UNIONS
1.
2.
3.
4.
5.
6.
Air Transport Executive Staff Union
Amalgamated Union of Public Daily Rated Workers
Amalgamated Union of Public Employees
Amalgamated Union of Statutory Board Employees
Attractions, Resorts & Entertainment Union
Building Construction And Timber Industries
Employees’ Union
7. Chemical Industries Employees’ Union
8. Creative Media and Publishing Union
9. DBS Staff Union
10. dnata Singapore Staff Union
11. Education Services Union
12. ExxonMobil Singapore Employees Union
13. Food, Drinks and Allied Workers Union
14. Healthcare Services Employees’ Union
15. Housing and Development Board Staff Union
16. Inland Revenue Authority of Singapore Staff Union
17. Keppel Employees Union
18. Keppel FELS Employees’ Union
19. Metal Industries Workers’ Union
20. National Transport Workers’ Union
21. Natsteel Employees’ Union
22. Ngee Ann Polytechnic Academic Staff Union
23. Port Officers’ Union
24. Public Utilities Board Employees’ Union
25. Reuters Local Employees Union
26. Scoot Staff Union
27. Sembawang Shipyard Employees’ Union
28. Shipbuilding and Marine Engineering Employees’
Union
29. SIA Engineering Company Engineers and
Executives Union
30. Singapore Airlines Staff Union
31. Singapore Airport Terminal Services Workers’
Union
32. Singapore Bank Employees’ Union
33. Singapore Bank Officers’ Association
34. Singapore Chinese Teachers’ Union
35. Singapore Industrial & Services Employees’ Union
36. Singapore Insurance Employees’ Union
37. Singapore Interpreters’ and Translators’ Union
38. Singapore Malay Teachers’ Union
39. Singapore Maritime Officers’ Union
Singapore Labour Foundation | 49
40. Singapore Organisation of Seamen
41. Singapore Port Workers Union
42. Singapore Refining Company Employees’ Union
43. Singapore Shell Employees’ Union
44. Singapore Stevedores’ Union
45. Singapore Tamil Teachers’ Union
46. Singapore Technologies Electronics Employees’
Union
47. Singapore Teachers’ Union
48. Singapore Union of Broadcasting Employees
49. Singapore Urban Redevelopment Authority
Workers’ Union
50. SPRING Singapore Staff Union
51. Staff Union of NTUC-ARU
52. The Singapore Manual & Mercantile Worker’s Union
53. Tigerair Staff Union of Singapore
54. Times Publishing Group Employees’ Union
55. Union of ITE Training Staff
56. Union of Power and Gas Employees
57. Union of Security Employees
58. Union of Telecoms Employees of Singapore
59. United Workers of Electronics & Electrical
Industries
60. United Workers of Petroleum Industry
ASSOCIATION
1. National Taxi Association
CO-OPERATIVES/ SOCIAL ENTERPRISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
NTUC Enterprise Co-operative Limited
NTUC Choice Homes Co-operative Limited
NTUC Fairprice Co-operative Limited
NTUC First Campus Co-operative Limited
NTUC Foodfare Co-operative Limited
NTUC Health Co-operative Limited
NTUC Income Insurance Co-operative Limited
NTUC LearningHub Co-operative Limited
NTUC Link Private Limited
Mercatus Co-operative Limited
Proventus Co-operative Limited
Corporate
Information
SINGAPORE LABOUR FOUNDATION
1 Marina Boulevard Level 10
One Marina Boulevard
Singapore 018989
Tel: 6213 8585
Fax: 6327 3700
Email: general@slf.gov.sg
CORPORATE SECRETARIAT
RHT Corporate Advisory Pte Ltd
Six Battery Road #10-01
Singapore 049909
EXTERNAL AUDITOR
Ernst & Young LLP
One Raffles Quay
North Tower
Level 18
Singapore 048583
INTERNAL AUDITOR
RSM Ethos Pte Ltd
8 Wilkie Road
#03-08
Wilkie Edge
Singapore 228095
Copyright June 2015
Creative Agency
Verztec Consulting Pte. Ltd.
Singapore Labour Foundation and its Subsidiaries
General information
Directors
Gan Kim Yong
Lim Boon Heng
Bobby Chin
Stephen Lee Ching Yen
Tan Hwee Bin
Lim Swee Say
Quah Wee Ghee
(Chairman)
(Deputy Chairman)
(Resigned on 4 May 2015)
(Resigned on 1 October 2014)
Registered Office
No.1 Marina Boulevard
#10-01 One Marina Boulevard
Singapore 018989
Auditors
Ernst & Young LLP
Bankers
Oversea-Chinese Banking Corporation Limited
DBS Bank Ltd
Index
Page
Statement by directors
1
Independent auditor's report
2
Income and expenditure statements
5
Statements of comprehensive income
7
Statements of financial position
8
Statements of changes in funds and reserves
10
Consolidated statement of cash flows
12
Notes to the financial statements
14
Singapore Labour Foundation and its Subsidiaries
Statement by directors
We, Gan Kim Yong and Bobby Chin, being two of the directors of Singapore Labour Foundation, do
hereby state that, in the opinion of the directors,
(a) the financial statements set out on pages 5 to 89 are drawn up so as to present fairly, in all
material respects, the state of affairs of the Singapore Labour Foundation (the "Foundation")
and its subsidiaries (collectively, the "Group") as at 31 December 2014 and of the results,
changes in funds and reserves and cash flows of the Group and of the results and changes in
funds and reserves of the Foundation for the year ended on that date in accordance with the
provision of the Singapore Labour Foundation Act, Chapter 302 (the "Act") and Statutory Board
Financial Reporting Standards;
(b) at the date of this statement, there are reasonable grounds to believe that the Foundation will
be able to pay its debts as and when they fall due;
(c) proper accounting and other records have been kept, including records of all assets of the
Foundation and of those subsidiaries incorporated in Singapore, whether purchased, donated
or otherwise;
(d) the receipt, expenditure and investment of monies and the acquisition and disposal of assets by
the Foundation during the financial year have been made in accordance with the Singapore
Labour Foundation Act, Chapter 302; and
(e) the register of members of the Foundation has been properly kept.
On behalf of the board of directors:
Mr Gan Kim Yong
Director
Mr Bobby Chin
Director
Singapore
22 May 2015
1
- 1 -
Singapore Labour Foundation and its Subsidiaries
Independent auditor's report
For the financial year ended 31 December 2014
Independent auditor’s report to the members of Singapore Labour Foundation
Report on the financial statements
We have audited the accompanying financial statements of Singapore Labour Foundation (the
"Foundation") and its subsidiaries (collectively, the "Group") set out on pages 5 to 89, which
comprise the statements of financial position of the Group and the Foundation as at 31 December
2014, the income and expenditure statements, statements of comprehensive income and
statements of changes in funds and reserves of the Group and the Foundation and the
consolidated statement of cash flows of the Group for the financial year then ended, and a
summary of significant accounting policies and other explanatory information.
Management's responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with the provisions of the Singapore Labour Foundation Act, Chapter 302 (the "Act")
and Statutory Board Financial Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Singapore Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
- 2 -
2
Singapore Labour Foundation and its Subsidiaries
Independent auditor's report
For the financial year ended 31 December 2014
Independent auditor’s report to the members of Singapore Labour Foundation
Opinion
In our opinion, the consolidated financial statements of the Group and the statement of financial
position, income and expenditure statement, statement of comprehensive income and statement of
changes in funds and reserves of the Foundation are properly drawn up in accordance with the
provisions of the Act and Statutory Board Financial Reporting Standards so as to present fairly, in
all material respects, the state of affairs of the Group and of the Foundation as at 31 December
2014 and the results, changes in funds and reserves and cash flows of the Group and the results
and changes in funds and reserves of the Foundation for the year ended on that date.
Report on other legal and regulatory requirements
Management’s responsibility for compliance with legal and regulatory requirements
Management is responsible for ensuring that the receipts, expenditure, investment of moneys and
the acquisition and disposal of assets, are in accordance with the provisions of the Act. This
responsibility includes implementing accounting and internal controls as management determines
are necessary to enable compliance with the provisions of the Act.
Auditor’s responsibility
Our responsibility is to express an opinion on management’s compliance based on our audit of the
financial statements. We conducted our audit in accordance with Singapore Standards on Auditing.
We planned and performed the compliance audit to obtain reasonable assurance about whether
the receipts, expenditure, investment of moneys and the acquisition and disposal of assets, are in
accordance with the provisions of the Act.
Our compliance audit includes obtaining an understanding of the internal control relevant to the
receipts, expenditure, investment of moneys and the acquisition and disposal of assets; and
assessing the risks of material misstatement of the financial statements from non-compliance, if
any, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Because of the inherent limitations in any accounting and internal control system, noncompliances may nevertheless occur and not be detected.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion on management’s compliance.
3
- 3 -
Singapore Labour Foundation and its Subsidiaries
Independent auditor's report
For the financial year ended 31 December 2014
Independent auditor’s report to the members of Singapore Labour Foundation
Opinion
In our opinion:
(a) the receipts, expenditure, investment of monies and the acquisition and disposal of assets by
the Foundation during the year are, in all material respects, in accordance with the provisions of
the Act.
(b) proper accounting and other records have been kept, including records of all assets of the
Foundation and of those subsidiaries incorporated in Singapore of which we are the auditors
whether purchased, donated or otherwise.
Ernst & Young LLP
Public Accountants and
Chartered Accountants
Singapore
22 May 2015
- 4 -
4
Singapore Labour Foundation and its Subsidiaries
Income and expenditure statements
For the financial year ended 31 December 2014
Note
Group
Year ended 1.4.2013 to
31.12.2014 31.12.2013
$'000
Income
Affiliation fees and contributions
Resort and social recreation
income
Rental, carpark and service
income
Management services fees
Other income
Net gain on disposal of property,
plant and equipment
Gain on disposal of investment
property
Miscellaneous income
Total expenditure
5
$'000
$'000
4
38,073
53,113
38,073
53,113
5
51,505
38,245
9,136
6,864
28,635
–
29,687
–
10,343
715
10,900
190
118,213
121,045
58,267
71,067
183
19
–
52
213,583
223
–
320
309,170
12
–
206
213,989
339
309,182
258
332,202
121,384
367,449
71,325
7
8
(18,612)
(6,793)
(28,716)
(6,068)
(14,028)
(5,544)
(19,271)
(5,944)
–
(733)
(3,716)
–
–
(80)
(2,920)
–
13
(8,525)
(8,430)
(6,121)
(5,889)
14
15
18
(2,762)
(105)
(679)
(1,649)
–
–
(2,762)
–
(679)
(1,649)
–
–
16
(2,383)
(2,733)
(1,767)
(2,273)
9
(248,734)
(60,403)
(45,808)
(41,901)
(247,234)
(2,382)
(44,307)
(1,116)
(383,780)
(145,308)
(265,394)
(58,234)
16
6
Total income
Expenditure
Resort and social recreation
related expenses
Maintenance related expenses
Staff costs
Utilities
Depreciation of property, plant
and equipment
Amortisation of prepaid lease
payments
Amortisation of intangible assets
Amortisation of discount on loan
Depreciation of investment
properties
Donations, grants and
sponsorship
Other expenses
$'000
Foundation
Year ended 1.4.2013 to
31.12.2014 31.12.2013
- 5 -
Singapore Labour Foundation and its Subsidiaries
Income and expenditure statements
For the financial year ended 31 December 2014
Note
Group
Year ended 1.4.2013 to
31.12.2014 31.12.2013
Foundation
Year ended 1.4.2013 to
31.12.2014 31.12.2013
$'000
$'000
$'000
$'000
129,380
(3,024)
309,456
(5,735)
101,893
(3,022)
367,495
(1,190)
126,356
303,721
98,871
366,305
Surplus from operations
74,778
279,797
200,926
379,396
Operating grant received
Amortisation of deferred capital
grant
Share of results of associates
60,655
38,640
–
–
13(ii)
1,495
64,388
1,872
32,218
1,495
–
1,872
–
Surplus before income tax and
contribution to Consolidated
Fund
11
201,316
352,527
202,421
381,268
Income tax expense
Contribution to Consolidated Fund
12
12
(1,099)
(34,412)
(957)
(64,816)
–
(34,412)
–
(64,816)
165,805
286,754
168,009
316,452
165,418
387
286,595
159
168,009
–
316,452
–
165,805
286,754
168,009
316,452
Finance and investment income
Finance and investment expenses
10
10
Net finance and investment
income
Surplus for the year/period
Attributable to:
Foundation
Non-controlling interests
Surplus for the year/period
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
- 6 -
6
Singapore Labour Foundation and its Subsidiaries
Statements of comprehensive income
For the financial year ended 31 December 2014
Group
Year ended 1.4.2013 to
31.12.2014 31.12.2013
Surplus for the year/period
Foundation
Year ended 1.4.2013 to
31.12.2014 31.12.2013
$'000
$'000
$'000
$'000
165,805
286,754
168,009
316,452
–
–
Other comprehensive income
Items that will not be
reclassified to income and
expenditure statements
- Share of other comprehensive
income of associate
Items that may be
subsequently reclassified to
income and expenditure
statements
- Transfer to profit and loss on
disposal of available for sale
investment
- Fair value adjustment
(67,643)
23,996
(268,054)
14,349
(85,384)
23,996
(352,503)
14,349
Total comprehensive income
for the year/period
133,442
25,110
106,621
(21,702)
133,055
387
24,951
159
106,621
–
(21,702)
–
133,442
25,110
106,621
(21,702)
11,284
(7,939)
Total comprehensive income
attributable to:
Foundation
Non-controlling interests
Total comprehensive income
for the year/period
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
7
- 7 -
Singapore Labour Foundation and its Subsidiaries
Statement of financial position
As at 31 December 2014
Group
Note
Foundation
2014
2013
2014
2013
$'000
$'000
$'000
$'000
51,074
75,493
593
15,525
–
921,356
69,975
70,000
1,471
100,892
78,255
–
177,722
–
526,172
134,322
70,000
2,575
44,641
75,493
–
–
1,297,449
550,576
66,371
70,000
1,471
94,746
78,255
–
164,302
1,223,576
234,676
130,718
70,000
2,575
1,205,487
1,089,938
2,106,001
1,998,848
18,147
1,263,872
2,228
346
1,103
719
5,019
8,486
113,238
–
1,134,599
125
308
1,103
270
–
21,501
157,466
18,147
139
–
–
1,103
277
–
3,713
71,119
–
242
–
–
1,103
32
–
21,657
92,022
1,413,158
1,315,372
94,498
115,056
2,618,645
2,405,310
2,200,499
2,113,904
1,625,834
65,292
494,680
52,675
1,417,467
92,721
390,441
96,322
1,460,140
52,860
–
63,845
1,263,836
81,155
–
125,233
Total funds and reserves
2,238,481
1,996,951
1,576,845
1,470,224
Non-controlling interests
10,892
10,504
–
–
2,249,373
2,007,455
1,576,845
1,470,224
ASSETS
Non-current assets
Property, plant and equipment
Prepaid lease payments
Intangible assets
Investment properties
Investment in subsidiaries
Investment in associates
Other investments
Loan receivable
Grant paid in advance
Current assets
Consolidated Fund recoverable
Other investments
Derivatives
Inventories
Grant paid in advance
Prepaid expenses
Grant receivable
Trade and other receivables
Cash and cash equivalents
13
14
15
16
17
18
19
20
21
12
19
22
23
21
34
24
25
Total assets
Funds and reserves
Accumulated fund
Assets replacement reserve
Capital reserve
Investment revaluation reserve
Total funds and reserves and
non-controlling interests
26
26
26
- 8 -
8
Singapore Labour Foundation and its Subsidiaries
Statements of financial position
As at 31 December 2014
Group
Note
Foundation
2014
2013
2014
2013
$'000
$'000
$'000
$'000
7,532
–
38
130,000
40,345
73,943
299
52,559
13,512
–
–
130,000
41,840
78,763
240
–
5,652
213,500
–
130,000
40,345
73,943
–
52,559
9,247
213,500
–
130,000
41,840
78,763
–
–
304,716
264,355
515,999
473,350
33,282
3,841
10
8,519
17,946
958
30,227
2,471
7
7,160
27,785
1,034
103,380
–
–
4,275
–
–
101,551
–
–
3,963
–
–
–
64,816
–
64,816
64,556
133,500
107,655
170,330
369,272
397,855
623,654
643,680
2,618,645
2,405,310
2,200,499
2,113,904
10,776
10,417
10,776
10,417
LIABILITIES
Non-current liabilities
Advance fees and deposits
Loan from a subsidiary
Finance lease liabilities
Medium Term Notes
Deferred capital grants
Deferred income
Deferred tax liabilities
Deferred consolidated fund payable
Current liabilities
Trade and other payables
Derivatives
Finance lease liabilities
Advance fees and deposits
Grants received in advance
Income tax payable
Provision for contribution to
Consolidated Fund
27
28
29
30
13
31
32
12
33
22
29
27
34
Total liabilities
Total funds and reserves, noncontrolling interests and
liabilities
Net assets of Trust Fund
Net assets of Special Relief Fund
37
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
9
- 9 -
(4,236)
–
108,475
Total contributions by and distributions to owners
31,665
(27,429)
104,239
Capital contributions by a non-controlling shareholder
–
–
–
–
–
–
1,625,834
65,292
494,680
Total changes in ownership interests in subsidiaries
At 31 December 2014
- 10 -
10
–
–
–
–
–
- 10 -
–
52,675
–
92,721
390,441
165,418
–
–
494,680
–
–
–
–
–
(268
14
–
(253
2,238,481
–
1
10,892
–
65,292
–
1
91,773
1,625,834
–
–
–
–
–
–
387
–
–
–
387
10,504
2
2
–
–
–
–
–
159
Capital
reserve
$'000
2,249,373
1
1
108,475
–
–
108,475
133,442
11,284
(67,643)
23,996
165,805
2,007,455
2
2
267,060
–
–
266,264
796
25,110
(7,939)
(268,054)
14,349
286,754
1,715,283
Total
$'000
Assets
Accumulated replacement
reserve
fund
$'000
$'000
At 31 December 2014
–
–
3,150
(2,202)
–
–
Total changes in ownership interests in subsidiaries
176,702
–
108,475
–
–
–
–
–
108,475
133,055
11,284
(67,643)
23,996
165,418
1,996,951
–
–
267,060
–
–
266,264
796
(7,939)
–
1,417,467
104,239
–
–
–
17,013
2,202
–
–
(27,429)
–
(4,236)
–
108,475
(43,647)
–
(67,643)
23,996
–
96,322
–
–
–
–
–
–
–
24,951
–
–
159
286,595
Capital contributions by a non-controlling shareholder
11,284
–
–
(24,991)
(2,438)
–
–
19,215
948
246,897
Capital contributions by a non-controlling shareholder
–
–
–
(253,705)
(7,939)
(268,054)
14,349
278,656
31,665
29,227
2,438
–
–
–
–
–
–
390,441
–
–
246,897
(20,163)
–
266,264
796
–
–
Total contributions by and distributions to owners
–
(268,054)
14,349
286,595
1,119,596
Total contributions by and distributions to owners
Contributions by and distributions to owners
Total comprehensive income for the financial year
176,702
–
–
–
–
92,721
–
–
948
3,150
(2,202)
–
–
–
–
–
–
10,343
Noncontrolling
interests
$'000
At 1 April 2013
Total comprehensive income for the financial year
11,284
–
–
165,418
1,417,467
–
–
19,215
17,013
2,202
–
–
278,656
–
–
–
1,704,940
350,027
Transfers (Note 26)
Utilisation (Note 26)
Effect of asset swap transaction (Note 26)
Share of changes recognised directly in associate’s equity (Note 26)
Profit for the year
Other comprehensive income:
- Share of other comprehensive income of associate
- Transfer to profit and loss on disposal of available for sales investment
- Fair value adjustment
At 31 December 2013 and 1 January 2014
Total changes in ownership interests in subsidiaries
Transfers (Note 26)
Utilisation (Note 26)
Share of changes recognised directly in associate’s equity (Note 26)
(7,939)
–
143,544
At 31 December 2013 and 1 January 2014
Capital contributions by a non-controlling shareholder
Contributions by and distributions to owners
286,595
Profit for the year
Other comprehensive income:
- Share of other comprehensive income of associate
- Transfer to profit and loss on disposal of available for sales investment
- Fair value adjustment
91,773
Total comprehensive income for the financial period
Total funds
and
reserves
$'000
Profit for the period
Other comprehensive income:
- Share of other comprehensive income of associate
- Transfer to profit and loss on disposal of available for sales investment
- Fair value adjustment
Investment
revaluation
reserve
$'000
Contributions by and distributions to owners
Total contributions by and distributions to owners
Transfers (Note 26)
Utilisation (Note 26)
Effect of asset swap transaction (Note 26)
Share of changes recognised directly in associate’s equity (Note 26)
Contributions by and distributions to owners
Total comprehensive income for the financial period
Profit for the period
Other comprehensive income:
- Share of other comprehensive income of associate
- Transfer to profit and loss on disposal of available for sales investment
- Fair value adjustment
At 1 April 2013
Total changes in ownership interests in subsidiaries
Capital
reserve
$'000
Group
1,119,596
(24,991)
(2,438)
–
Group
29,227
2,438
–
Transfers (Note 26)
Utilisation (Note 26)
Share of changes recognised directly in associate’s equity (Note 26)
Assets
Accumulated replacement
reserve
fund
$'000
$'000
Statements of changes in funds and reserves for the financial year ended 31 December 2014
Singapore Labour Foundation and its Subsidiaries
Singapore Labour Foundation and its Subsidiaries
Statements of changes in funds and reserves for the financial year ended 31 December 2014
Investm
revalua
reser
$'00
143,544
–
–
–
350
–
(20,163)
–
266,264
796
–
96
(67
23
(43
52
Singapore Labour Foundation and its Subsidiaries
Statements of changes in funds and reserves
For the financial year ended 31 December 2014
Assets
Accumulated replacement
fund
reserve
$'000
$'000
Investment
revaluation
reserve
Total
$'000
$'000
Foundation
At 1 April 2013
948,581
79,958
463,387
1,491,926
Profit for the period
316,452
–
–
316,452
–
–
–
–
(352,503)
14,349
(352,503)
14,349
316,452
–
(338,154)
(21,702)
Other comprehensive income:
- Transfer to profit and loss on disposal
of available for sales investment
- Fair value adjustment
Total comprehensive income for the
financial period
Contributions by and distributions to
owners
Transfers
Utilisation
(2,025)
828
2,025
(828)
–
–
–
–
Total contributions by and
distributions to owners
(1,197)
1,197
–
–
1,263,836
81,155
125,233
1,470,224
168,009
–
–
168,009
–
–
–
–
(85,384)
23,996
(85,384)
23,996
168,009
–
(61,388)
106,621
At 31 December 2013 and
1 January 2014
Profit for the year
Other comprehensive income:
- Transfer to profit and loss on disposal
of available for sales investment
- Fair value adjustment
Total comprehensive income for the
financial year
Contributions by and distributions to
owners
Transfers on disposal of investment
property
Utilisation
26,631
1,664
(26,631)
(1,664)
–
–
–
–
Total contributions by and
distributions to owners
28,295
(28,295)
–
–
63,845
1,576,845
At 31 December 2014
1,460,140
52,860
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
11
- 11 -
Singapore Labour Foundation and its Subsidiaries
Consolidated statement of cash flows
For the financial year ended 31 December 2014
Year ended
31.12.2014
1.4.2013 to
31.12.2013
$'000
$'000
165,805
286,754
8,525
2,383
2,762
105
679
(4,820)
(1,495)
(183)
(213,583)
4
(67,717)
4
(64,388)
–
(44,410)
(7,067)
(10,186)
3,024
34,412
1,099
8,430
2,733
1,649
–
–
(3,929)
(1,872)
(19)
–
–
(260,169)
8
(32,218)
(6,302)
(22,649)
(13,161)
(2,631)
1,191
64,816
957
Operating cash flows before changes in working
capital
(195,047)
23,588
Changes in working capital:
Inventories
Trade and other receivables and prepaid expenses
Trade and other payables
Grant paid in advance
Fees and deposits received in advance
Grants utilised/payable
(38)
12,803
(4,815)
1,104
(4,621)
(61,413)
9
8,503
(2,566)
828
2,440
(37,881)
(252,027)
(5,079)
(1,116)
(64,816)
54,425
(863)
(7,164)
40,588
(263,534)
27,482
Note
Operating activities
Surplus for the year/period
Adjustments for:
Depreciation of property, plant and equipment
Depreciation of investment properties
Amortisation of prepaid lease payments
Amortisation of intangible assets
Amortisation of discount on loan
Amortisation of deferred capital contribution from members
Amortisation of deferred capital grant
Gain on disposal of property, plant and equipment
Gain on disposal of investment property
Fixed assets written off
Gain on sale of investments
Impairment loss on trade receivables
Share of results in associates
Bonus share distribution
Net gain in fair value of held for trading investments
Dividend income
Interest income
Interest expense
Provision for contribution to Consolidated Fund
Income tax expense
13
16
14
15
18
31
13
13
10
24
10
10
10
10
10
12
12
34
Cash used in operations
Income tax paid
Contribution to Consolidated Fund
Grants received
34
Net cash flows (used in)/generated from operating
activities
- 12 -
12
Singapore Labour Foundation and its Subsidiaries
Consolidated statement of cash flows
For the financial year ended 31 December 2014
Note
Year ended
31.12.2014
1.4.2013 to
31.12.2013
$'000
$'000
Investing activities
Dividends received - Others
Dividends received - Associate
Interest received
Interest paid
Capital expenditure:
- Property, plant and equipment
- Intangible asset
Prepaid lease payments
Proceeds on disposal of property, plant and equipment
Proceeds on disposal of investment property
Other investments
Investment in Associate
Proceeds from sale/other investments
Proceeds from available for sale investments
Net sale/(acquisition) and maturity of investments:
- Held-for-trading investments
10
7,067
6,555
9,265
(3,024)
13,161
–
804
(537)
13
15
14
(3,171)
(698)
–
448
515,900
(73,873)
(315,900)
2
88,259
(1,860)
–
(18,000)
156
–
(309,307)
–
32,000
363,249
(11,566)
(60,323)
219,264
19,343
Net cash flows generated from investing activities
Financing activities
Proceeds from/(repayment) of finance liabilities
Proceeds from minority interests
Loan receivable
Proceeds from Medium Term Note Programme
20
30
Net cash flows generated/(used in) from financing
activities
41
1
–
–
(12)
2
(70,000)
70,000
42
(10)
Net (decrease)/increase in cash and cash equivalents
(44,228)
46,815
Cash and cash equivalents at beginning of the
year/period
157,466
110,651
113,238
157,466
Cash and cash equivalents at end of the year/period
25
The accompanying accounting policies and explanatory notes form an integral part of the financial
statements.
13
- 13 -
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
1.
Corporate information
Singapore Labour Foundation (the "Foundation") was created by an Act of Parliament in
1977 under Singapore Labour Foundation Act, Chapter 302 (the “Act”) of the Statutes of
the Republic of Singapore. The Foundation is a statutory board of Ministry of Manpower
and has its registered office at No. 1 Marina Boulevard, #10-01 One Marina Boulevard,
Singapore 018989.
The principal objective of the Foundation under the Act is to promote the welfare of the
members of the trade union movement in the Republic of Singapore and of the families of
the members. The principal activities of the subsidiaries are set out in Note 17 to the
financial statements.
The consolidated financial statements relate to the Foundation and its subsidiaries
(collectively, the “Group”).
2.
Summary of significant accounting policies
2.1
Basis of preparation
The consolidated financial statements of the Group and the statement of financial position,
income and expenditure statement, statement of comprehensive income and statement of
changes in funds and reserves of the Foundation have been prepared in accordance with
the provisions of the Act and Statutory Board Financial Reporting Standards (“SB-FRS”).
SB-FRS includes Statutory Board Financial Reporting Standards, Interpretations of SBFRS and SB-FRS Guidance Notes as promulgated by the Accountant General. This is in
compliance with all Finance Circular Minutes on Accounting Standards for Statutory Boards
issued by the Ministry of Finance since 31 October 2003.
The financial statements have been prepared on the historical cost basis except as
disclosed in the accounting policies below.
The accounting policies used by the Group have been applied consistently to all periods
presented in these financial statements, except as disclosed in Note 2.2.
The financial statements are presented in Singapore Dollars (SGD or $) and all values in
the tables are rounded to the nearest thousand ($'000) as indicated.
2.2
Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial period
except in the current financial year, the Group has adopted all the new and revised
standards and Interpretations of SB-FRS (INT SB-FRS) that are effective for annual
periods beginning on or after 1 January 2014. The adoption of these standards and
interpretations did not have any effect on the financial performance or position of the Group
and the Foundation.
- 14 -
14
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.3
Standards issued but not yet effective
The Group has not adopted the following standards that have been issued but not yet
effective:
Effective for
annual periods
beginning on or
after
Description
Amendments to SB-FRS 19: Defined Benefit Plans: Employee
Contributions
Improvements to SB-FRSs (January 2014)
Improvements to SB-FRSs (February 2014)
SB-FRS 114: Regulatory Deferral Accounts
Amendments to SB-FRS 27: Equity Method in Separate Financial
Statements
1 July 2014
1 July 2014
1 July 2014
1 January 2016
1 January 2016
Amendments to SB-FRS16 and SB-FRS 38: Clarification of
Acceptable Methods of Depreciation and Amortisation
1 January 2016
Amendments to SB-FRS 111: Accounting for Acquisitions of
Interests in Joint Operations
1 January 2016
The Group expects that the adoption of the standards above will have no material impact
on the financial statements in the period of initial application.
15
- 15 -
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.4
Basis of consolidation and business combinations
(a) Basis of consolidation
The consolidated financial statements comprise the financial statements of the
Foundation and its subsidiaries as at the end of the reporting period. The financial
statements of the subsidiaries used in the preparation of the consolidated financial
statements are prepared for the same reporting date as the Foundation. Consistent
accounting policies are applied to like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses
resulting from intra-group transactions and dividends are eliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on which the
Group obtains control, and continue to be consolidated until the date that such control
ceases.
Losses within a subsidiary are attributed to the non-controlling interest even if that
results in a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is
accounted for as an equity transaction. If the Group loses control over a subsidiary, it:
-
De-recognises the assets (including goodwill) and liabilities of the subsidiary at
their carrying amounts at the date when control is lost;
-
De-recognises the carrying amount of any non-controlling interest;
-
De-recognises the cumulative translation differences recorded in equity;
-
Recognises the fair value of the consideration received;
-
Recognises the fair value of any investment retained;
-
Recognises any surplus or deficit in income and expenditure;
-
Re-classifies the Group's share of components previously recognised in other
comprehensive income to income and expenditure or accumulated fund, as
appropriate.
- 16 -
16
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.4
Basis of consolidation and business combinations (cont'd)
(b) Business combinations
Business combinations are accounted for by applying the acquisition method.
Identifiable assets acquired and liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. Acquisition-related costs
are recognised as expenses in the periods in which the costs are incurred and the
services are received.
When the Group acquires a business, it assesses the financial assets and liabilities
assumed for appropriate classification and designation in accordance with the
contractual terms, economic circumstances and pertinent conditions as at the
acquisition date. This includes the separation of embedded derivatives in host
contracts by the acquiree.
Any contingent consideration to be transferred by the acquirer will be recognised at fair
value at the acquisition date. Subsequent changes to the fair value of the contingent
consideration which is deemed to be an asset or liability, will be recognised in
accordance with SB-FRS 39 either in profit or loss or as a change to other
comprehensive income. If the contingent consideration is classified as equity, it is not
to be remeasured until it is finally settled within equity.
In business combinations achieved in stages, previously held equity interests in the
acquiree are remeasured to fair value at the acquisition date and any corresponding
gain or loss is recognised in income and expenditure.
The Group elects for each individual business combination, whether non-controlling
interest in the acquiree (if any) is recognised on the acquisition date at fair value, or at
the non-controlling interest's proportionate share of the acquiree's identifiable net
assets.
Any excess of the sum of the fair value of the consideration transferred in the business
combination, the amount of non-controlling interest in the acquiree (if any), and the fair
value of the Group's previously held equity interest in the acquiree (if any), over the net
fair value of the acquiree's identifiable assets and liabilities is recorded as goodwill. In
instances where the latter amount exceeds the former, the excess is recognised as
gain on bargain purchase in income and expenditure on the acquisition date.
17
- 17 -
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.5
Transactions with non-controlling interests
Non-controlling interest represents the equity in subsidiaries not attributable, directly or
indirectly, to owners of the Foundation, and are presented separately in the consolidated
statement of comprehensive income and within equity in the consolidated statement of
financial position, separately from funds and reserves attributable to the Foundation.
Changes in the Foundation ownership interest in a subsidiary that do not result in a loss of
control are accounted for as equity transactions. In such circumstances, the carrying
amounts of the controlling and non-controlling interests are adjusted to reflect the changes
in their relative interests in the subsidiary. Any difference between the amount by which the
non-controlling interest is adjusted and the fair value of the consideration paid or received
is recognised directly in funds and reserves and attributed to the Foundation.
2.6
Foreign currency
The Group's consolidated financial statements are presented in Singapore Dollars, which is
also the Foundation's functional currency. Each entity in the Group determines its own
functional currency and items included in the financial statements of each entity are
measured using that functional currency.
(a) Transactions and balances
Transactions in foreign currencies are measured in the respective functional currencies
of the Foundation and its subsidiaries and are recorded on initial recognition in the
functional currencies at exchange rates approximating those ruling at the transaction
dates. Monetary assets and liabilities denominated in foreign currencies are translated
at the rate of exchange ruling at the end of the reporting period. Non-monetary items
that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates as at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating
monetary items at the end of the reporting period are recognised in income and
expenditure.
- 18 -
18
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.6
Foreign currency (cont'd)
(b) Consolidated financial statements
For consolidation purpose, the assets and liabilities of foreign operations are translated
into SGD at the rate of exchange ruling at the end of the reporting period and their
profit or loss are translated at the exchange rates prevailing at the date of the
transactions. The exchange differences arising on the translation are recognised in
other comprehensive income. On disposal of a foreign operation, the component of
other comprehensive income relating to that particular foreign operation is recognised
in income and expenditure.
In the case of a partial disposal without loss of control of a subsidiary that includes a
foreign operation, the proportionate share of the cumulative amount of the exchange
differences are re-attributed to non-controlling interest and are not recognised in
income and expenditure. For partial disposals of associates or jointly controlled entities
that are foreign operations, the proportionate share of the accumulated exchange
differences is reclassified to income and expenditure.
2.7
Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to
recognition, plant and equipment and furniture and fixtures are measured at cost less
accumulated depreciation and any accumulated impairment losses. The cost includes the
cost of replacing part of the property, plant and equipment and borrowing costs that are
directly attributable to the acquisition, construction or production of a qualifying property,
plant and equipment. The cost of an item of property, plant and equipment is recognised as
an asset if, and only if, it is probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured reliably.
When significant parts of property, plant and equipment are required to be replaced in
intervals, the Group recognises such parts as individual assets with specific useful lives
and depreciation, respectively. Likewise, when a major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are recognised in
income and expenditure as incurred.
Depreciation is computed on a straight-line basis over the estimated useful lives of the
assets as follows:
Leasehold land
Leasehold buildings, premises and improvements
Plant, machinery and motor vehicles
Office premises and computer
19
- 19 -
: 30 years
: 5 to 30 years
: 2 to 10 years
: 3 to 5 years
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.7
Property, plant and equipment (cont'd)
Assets under construction included in plant and equipment are not depreciated as these
assets are not yet available for use.
The carrying values of property, plant and equipment are reviewed for impairment when
events or changes in circumstances indicate that the carrying value may not be
recoverable.
The residual value, useful life and depreciation method are reviewed at each financial yearend, and adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss on de-recognition
of the asset is included in income and expenditure in the year the asset is derecognised.
2.8
Investment properties
Investment properties are properties that are either owned by the Group or leased under a
finance lease in order to earn rentals or for capital appreciation, or both, rather than for use
in the production or supply of goods or services, or for administrative purposes, or in the
ordinary course of business. Investment properties comprise completed investment
properties and properties that are being constructed or developed for future use as
investment properties. Properties held under operating leases are classified as investment
properties when the definition of investment properties is met and they are accounted for
as finance leases.
Investment properties are initially measured at cost, including transaction costs. The
carrying amount includes the cost of replacing part of an existing investment property at the
time that cost is incurred if the recognition criteria are met.
Subsequent to initial recognition, investment properties are measured at cost less
accumulated depreciation and impairment. Depreciation on leasehold land, leasehold
buildings and premises classified as investment properties is recognised in income and
expenditure on a straight-line basis over the estimated useful lives (or lease term, if
shorter) as follows:
Leasehold buildings and premises
: 50 years
Investment properties are derecognised when either they have been disposed of or when
the investment property is permanently withdrawn from use and no future economic benefit
is expected from its disposal. Any gain or loss on the retirement or disposal of an
investment property is recognised in income and expenditure in the year of retirement or
disposal.
- 20 -
20
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.8
Investment properties (cont'd)
Transfers are made to or from investment property only when there is a change in use. For
a transfer from investment property to owner-occupied property, the deemed cost for
subsequent accounting is the fair value at the date of change in use. For a transfer from
owner-occupied property to investment property, the property is accounted for in
accordance with the accounting policy for property, plant and equipment set out in Note 2.7
up to the date of change in use.
2.9
Intangible assets
Intangible assets acquired separately are measured initially at cost. Following initial
acquisition, intangible assets are carried at cost less any accumulated amortisation and
any accumulated impairment losses. The useful lives of intangible assets are assessed as
finite.
Intangible assets are amortised over the estimated useful lives year and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method are reviewed at least once at each
financial year-end. Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset is accounted for by
changing the amortisation period or method, as appropriate, and are treated as changes in
accounting estimates. The amortisation expense on intangible assets is recognised in
income and expenditure in the expense category consistent with the function of the
intangible asset.
Gains or losses arising from de-recognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are
recognised in income and expenditure when the asset is derecognised.
Software Licence
Software licence was acquired separately and is amortised on a straight line basis over its
finite useful life of 5 years.
2.10
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset
may be impaired. If any indication exists, or when an annual impairment testing for an
asset is required, the Group makes an estimate of the asset's recoverable amount.
An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair
value less costs to sell and its value in use and is determined for an individual asset, unless
the asset does not generate cash inflows that are largely independent of those from other
assets or group of assets. Where the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. In assessing value in use, the estimated future cash flows expected to
be generated by the asset are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs to sell, recent market transactions
are taken into account, if available. If no such transactions can be identified, an appropriate
valuation model is used. These calculations are corroborated by valuation multiples or
other available fair value indicators.
21
- 21 -
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.10
Impairment of non-financial assets (cont'd)
The Group bases its impairment calculation on detailed budgets and forecast calculations
which are prepared separately for each of the Group's cash-generating units to which the
individual assets are allocated.
Impairment losses of continuing operations are recognised in income and expenditure in
those expense categories consistent with the function of the impaired asset, except for
assets that are previously revalued where the revaluation was taken to other
comprehensive income. In this case, the impairment is also recognised in other
comprehensive income up to the amount of any previous revaluation.
For assets excluding goodwill, an assessment is made at each reporting date as to whether
there is any indication that previously recognised impairment losses may no longer exist or
may have decreased. If such indication exists, the Group estimates the asset's or cashgenerating unit's recoverable amount. A previously recognised impairment loss is reversed
only if there has been a change in the estimates used to determine the asset's recoverable
amount since the last impairment loss was recognised. If that is the case, the carrying
amount of the asset is increased to its recoverable amount. That increase cannot exceed
the carrying amount that would have been determined, net of depreciation, had no
impairment loss been recognised previously. Such reversal is recognised in income and
expenditure unless the asset is measured at revalued amount, in which case the reversal is
treated as a revaluation increase.
2.11
Subsidiaries
A subsidiary is an investee that is controlled by the Group. The Group controls an investee
when it is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee.
In the Foundation's separate financial statements, investments in subsidiaries are
accounted for at cost less impairment losses.
2.12
Associates
An associate is an entity, not being a subsidiary or a joint venture, in which the Group has
significant influence. An associate is equity accounted for from the date the Group obtains
significant influence until the date the Group ceases to have significant influence over the
associate.
The Group‘s investments in associates are accounted for using the equity method. Under
the equity method, the investment in associates is carried in the statement of financial
position at cost plus post-acquisition changes in the Group‘s share of net assets of the
associates. On the date of transfer of shares of associates into the group, any difference
between the consideration paid and the share of the net carrying value of the associate
identifiable assets and liabilities are recognised in capital reserve using pooling of interest
method.
Any subsequent excess of the Group‘s share of the net fair value of the
associate‘s identifiable asset, liabilities and contingent liabilities over the cost of the
investment is included as income in the determination of the Group‘s share of results of the
associate.
- 22 -
22
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.12
Associates (cont'd)
The profit or loss reflects the share of the results of operations of the associates. Where
there has been a change recognised in other comprehensive income by the associates, the
Group recognises its share of such changes in other comprehensive income. Unrealised
gains and losses resulting from transactions between the Group and the associate are
eliminated to the extent of the interest in the associates.
When the Group‘s share of losses in an associate equals or exceeds its interest in the
associate, the Group does not recognise further losses, unless it has incurred obligations
or made payments on behalf of the associate.
After application of the equity method, the Group determines whether it is necessary to
recognise an additional impairment loss on the Group‘s investment in its associates. The
Group determines at the end of each reporting period whether there is any objective
evidence that the investment in the associate is impaired. If this is the case, the Group
calculates the amount of impairment as the difference between the recoverable amount of
the associate and its carrying value and recognises the amount in income and expenditure.
The financial statements of the associates are prepared as of the same reporting date as
the Foundation. Where necessary, adjustments are made to bring the accounting policies
in line with those of the Group.
Upon loss of significant influence over the associate, the Group measures and recognises
any retained investment at its fair value. Any difference between the carrying amount of the
associate upon loss of significant influence and the fair value of the aggregate of the
retained investment and proceeds from disposal is recognised in income and expenditure.
The capital reserve in relation to the associate is retained in the capital reserve upon
disposal.
2.13
Financial instruments
(a) Financial assets
Initial recognition and measurement
Financial assets are recognised when, and only when, the Group becomes a party to
the contractual provisions of the financial instrument. The Group determines the
classification of its financial assets at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in
the case of financial assets not at fair value through profit or loss, directly attributable
transaction costs.
23
- 23 -
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.13
Financial instruments (cont'd)
(a) Financial assets (cont'd)
Subsequent measurement
The subsequent measurement of financial assets depends on their classification as
follows:
(a) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for
trading and financial assets designated upon initial recognition at fair value through
profit or loss. Financial assets are classified as held for trading if they are acquired
for the purpose of selling or repurchasing in the near term. This category includes
derivative financial instruments entered into by the Group that are not designated
as hedging instruments in hedge relationships as defined by SB-FRS 39.
Derivatives, including separated embedded derivatives are also classified as held
for trading unless they are designated as effective hedging instruments.
Subsequent to initial recognition, financial assets at fair value through profit or loss
are measured at fair value. Any gains or losses arising from changes in fair value
of the financial assets are recognised in income and expenditure. Net gains or net
losses on financial assets at fair value through profit or loss include exchange
differences, interest and dividend income.
Derivatives embedded in host contracts are accounted for as separate derivatives
and recorded at fair value if their economic characteristics and risks are not closely
related to those of the host contracts and the host contracts are not held for trading
or designated at fair value through profit or loss. These embedded derivatives are
measured at fair value with changes in fair value recognised in income and
expenditure. Reassessment only occurs if there is a change in the terms of the
contract that significantly modifies the cash flows that would otherwise be required.
(b) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market are classified as loans and receivables. Subsequent to
initial recognition, loans and receivables are measured at amortised cost using the
effective interest method, less impairment. Gains and losses are recognised in
income and expenditure when the loans and receivables are derecognised or
impaired, and through the amortisation process.
- 24 -
24
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.13
Financial instruments (cont'd)
(a) Financial assets (cont'd)
(c) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed
maturity are classified as held-to-maturity when the Group has the positive
intention and ability to hold the investment to maturity. Subsequent to initial
recognition, held-to-maturity investments are measured at amortised cost using the
effective interest method, less impairment. Gains and losses are recognised in
income and expenditure when the held-to-maturity investments are derecognised
or impaired, and through the amortisation process.
The Group has not designated any financial assets upon initial recognition and
subsequently as held-to-maturity investments.
(d) Available-for-sale financial assets
Available-for-sale financial assets consist of equity securities. Equity investments
classified as available-for sale are those, which are neither classified as held for
trading nor designated at fair value through profit or loss.
After initial recognition, available-for-sale financial assets are subsequently
measured at fair value. Any gains or losses from changes in fair value of the
financial assets are recognised in other comprehensive income, except that
impairment losses, foreign exchange gains and losses on monetary instruments
and interest calculated using the effective interest method are recognised in
income and expenditure. The cumulative gain or loss previously recognised in
other comprehensive income is reclassified from funds and reserves to income and
expenditure as a reclassification adjustment when the financial asset is derecognised.
The fair value of investments that are actively traded in organised financial markets
is determined by reference to the relevant Exchange's quoted market bid prices at
the close of business on the balance sheet date. For investments where there is no
active market and where fair value cannot be reliably determined, they are
measured at cost, less any impairment losses.
25
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Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.13
Financial instruments (cont'd)
(a) Financial assets (cont'd)
De-recognition
A financial asset (or, where applicable a part of a financial asset or part of a group of
similar financial assets) is derecognised where:
•
The contractual rights to receive cash flows from the asset have expired;
•
The Group retains the contractual rights to receive cash flows from the asset, but
has assumed an obligation to pay them in full without material delay to a third party
under a 'pass-through' arrangement; or
•
The Group has transferred its rights to receive cash flows from the asset and either
has transferred substantially all the risks and rewards of the asset, or has neither
transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
Where the Group has transferred its rights to receive cash flows from an asset and has
neither transferred nor retained substantially all the risks and rewards of the asset nor
transferred control of the asset, the asset is recognised to the extent of the Group's
continuing involvement in the asset. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of the original carrying
amount of the asset and the maximum amount of consideration that the Group could
be required to repay.
On derecognition of a financial asset in its entirety, the difference between the carrying
amount and the sum of the consideration received (including any new asset obtained
less any new liability assumed) and any cumulative gain or loss that has been
recognised in other comprehensive income is recognised in income and expenditure.
All regular way purchases and sales of financial assets are recognised or derecognised
on the trade date i.e., the date that the Group commits to purchase or sell the asset.
Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the period generally established by regulation or convention in
the marketplace concerned.
- 26 -
26
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.13
Financial instruments (cont'd)
(b) Financial liabilities
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Group becomes a party to
the contractual provisions of the financial instrument. The Group determines the
classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of financial
liabilities not at fair value through profit or loss, directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss includes financial liabilities held for
trading and financial liabilities designated upon initial recognition at fair value through
profit or loss. Financial liabilities are classified as held for trading if they are acquired
for the purpose of selling in the near term. This category includes derivative financial
instruments entered into by the Group that are not designated as hedging instruments
in hedge relationships. Separated embedded derivatives are also classified as held for
trading unless they are designated as effective hedging instruments.
Subsequent to initial recognition, financial liabilities at fair value through profit or loss
are measured at fair value. Any gains or losses arising from changes in fair value of the
financial liabilities are recognised in income and expenditure.
Other financial liabilities
After initial recognition, other financial liabilities are subsequently measured at
amortised cost using the effective interest rate method. Gains and losses are
recognised in income and expenditure when the liabilities are derecognised, and
through the amortisation process.
De-recognition
A financial liability is derecognised when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a de-recognition
of the original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognised in income and expenditure.
27
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Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.14
Impairment of financial assets
The Group assesses at each reporting date whether there is any objective evidence that a
financial asset is impaired.
(a) Financial assets carried at amortised cost
For financial assets carried at amortised cost, the Group first assesses whether
objective evidence of impairment exists individually for financial assets that are
individually significant, or collectively for financial assets that are not individually
significant. If the Group determines that no objective evidence of impairment exists for
an individually assessed financial asset, whether significant or not, it includes the asset
in a group of financial assets with similar credit risk characteristics and collectively
assesses them for impairment. Assets that are individually assessed for impairment
and for which an impairment loss is, or continues to be recognised are not included in a
collective assessment of impairment. If there is objective evidence that an impairment
loss on financial assets carried at amortised cost has been incurred, the amount of the
loss is measured as the difference between the asset's carrying amount and the
present value of estimated future cash flows discounted at the financial asset's original
effective interest rate. If a loan has a variable interest rate, the discount rate for
measuring any impairment loss is the current effective interest rate. The carrying
amount of the asset is reduced through the use of an allowance account. The
impairment loss is recognised in income and expenditure.
When the asset becomes uncollectible, the carrying amount of impaired financial
assets is reduced directly or if an amount was charged to the allowance account, the
amounts charged to the allowance account are written off against the carrying value of
the financial asset.
To determine whether there is objective evidence that an impairment loss on financial
assets has been incurred, the Group considers factors such as the probability of
insolvency or significant financial difficulties of the debtor and default or significant
delay in payments.
If in a subsequent period, the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment was
recognised, the previously recognised impairment loss is reversed to the extent that the
carrying amount of the asset does not exceed its amortised cost at the reversal date.
The amount of reversal is recognised in income and expenditure.
(b) Financial assets carried at cost
If there is objective evidence (such as significant adverse changes in the business
environment where the issuer operates, probability of insolvency or significant financial
difficulties of the issuer) that an impairment loss on financial assets carried at cost has
been incurred, the amount of the loss is measured as the difference between the
asset's carrying amount and the present value of estimated future cash flows
discounted at the current market rate of return for a similar financial asset. Such
impairment losses are not reversed in subsequent periods.
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28
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.14
Impairment of financial assets (cont'd)
(c) Available-for-sale financial assets
In the case of equity investments classified as available-for-sale, objective evidence of
impairment include (i) significant financial difficulty of the issuer or obligor, (ii)
information about significant changes with an adverse effect that have taken place in
the technological, market, economic or legal environment in which the issuer operates,
and indicates that the cost of the investment in equity instrument may not be
recovered; and (iii) a significant or prolonged decline in the fair value of the investment
below its costs. 'Significant' is to be evaluated against the original cost of the
investment and 'prolonged' against the period in which the fair value has been below its
original cost.
If an available-for-sale financial asset is impaired, an amount comprising the difference
between its acquisition cost (net of any principal repayment and amortisation) and its
current fair value, less any impairment loss previously recognised in income and
expenditure, is transferred from other comprehensive income and recognised in
income and expenditure. Reversals of impairment losses in respect of equity
instruments are not recognised in income and expenditure; increase in their fair value
after impairment are recognised directly in other comprehensive income.
In the case of debt instruments classified as available-for-sale, impairment is assessed
based on the same criteria as financial assets carried at amortised cost. However, the
amount recorded for impairment is the cumulative loss measured as the difference
between the amortised cost and the current fair value, less any impairment loss on that
investment previously recognised in income and expenditure. Future interest income
continues to be accrued based on the reduced carrying amount of the asset, using the
rate of interest used to discount the future cash flows for the purpose of measuring the
impairment loss. The interest income is recorded as part of finance income. If, in a
subsequent year, the fair value of a debt instrument increases and the increases can
be objectively related to an event occurring after the impairment loss was recognised in
income and expenditure, the impairment loss is reversed in income and expenditure.
2.15
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, and short-term, highly
liquid investments that are readily convertible to known amount of cash and which are
subject to an insignificant risk of changes in value.
2.16
Inventories
Inventories, which represent mainly consumable stocks are stated at the lower of cost
(determined on a first-in first-out basis) and net realisable value.
Where necessary, allowance is provided for damaged, obsolete and slow moving items to
adjust the carrying value of inventories to the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and the estimated costs necessary to make the sale.
29
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Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.17
Provisions
General
Provisions are recognised when the Group has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and the amount of the obligation can be
estimated reliably.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the
current best estimate. If it is no longer probable that an outflow of economic resources will
be required to settle the obligation, the provision is reversed. If the effect of the time value
of money is material, provisions are discounted using a current pre tax rate that reflects,
where appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognised as a finance cost.
2.18
Employee benefits
(a) Defined contribution plans
The Group participates in the national pension schemes as defined by the laws of the
countries in which it has operations. In particular, the Foundation and Singapore
companies in the Group make contributions to the Central Provident Fund scheme in
Singapore, a defined contribution pension scheme. Contributions to defined
contribution pension schemes are recognised as an expense in the period in which the
related service is performed.
(b) Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and
are expensed as the related service is provided.
A provision is recognised for the amount expected to be paid under short-term cash
bonus or profit-sharing plans if the Group has a present legal or constructive obligation
to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
- 30 -
30
Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.19
Leases
The determination of whether an arrangement is, or contains a lease is based on the
substance of the arrangement at inception date: whether fulfilment of the arrangement is
dependent on the use of a specific asset or assets or the arrangement conveys a right to
use the asset, even if that right is not explicitly specified in an arrangement.
For arrangements entered into prior to 1 January 2005, the date of inception is deemed to
be 1 January 2005 in accordance with the transitional requirements of INT SB-FRS 104.
(a) As lessee
Finance leases which transfer to the Group substantially all the risks and rewards
incidental to ownership of the leased item, are capitalised at the inception of the lease
at the fair value of the leased asset or, if lower, at the present value of the minimum
lease payments. Any initial direct costs are also added to the amount capitalised.
Lease payments are apportioned between the finance charges and reduction of the
lease liability so as to achieve a constant rate of interest on the remaining balance of
the liability. Finance charges are charged to income and expenditure. Contingent rents,
if any, are charged as expenses in the periods in which they are incurred.
Capitalised leased assets are depreciated over the shorter of the estimated useful life
of the asset and the lease term, if there is no reasonable certainty that the Group will
obtain ownership by the end of the lease term.
Operating lease payments are recognised as an expense in income and expenditure
on a straight-line basis over the lease term. The aggregate benefit of incentives
provided by the lessor is recognised as a reduction of rental expense over the lease
term on a straight-line basis.
(b) As lessor
Leases where the Group retains substantially all the risks and rewards of ownership of
the asset are classified as operating leases. Initial direct costs incurred in negotiating
an operating lease are added to the carrying amount of the leased asset and
recognised over the lease term on the same bases as rental income. The accounting
policy for rental income is set out in Note 2.20. Contingent rents are recognised as
revenue in the period in which they are earned.
31
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Singapore Labour Foundation and its Subsidiaries
Notes to the financial statements
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont'd)
2.20
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow
to the Group and the revenue can be reliably measured, regardless of when the payment is
made. Revenue is measured at the fair value of consideration received or receivable,
taking into account contractuall