growing - Parliament Of Singapore

Transcription

Singapore Labour Foundation Annual Report 2010/2011
S. 31 of 2011
Presented to Parliament pursuant to Statute.
Ordered by Parliament to lie upon the Table:
11 August 2011
Annual Report 2011
growing
wit
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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.
Copyright August 2011
Publisher
NTUC Media Co-operative Limited, for and on behalf of
the Singapore Labour Foundation. The publisher owns the copyright to all photographs and articles in this book. No photograph or article may be reproduced in part or in full without the consent of the publisher.
Printer
KHL Printing Co Pte Ltd
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ANNUAL REPORT 2011
SINGAPORE LABOUR FOUNDATION
SLF focuses on helping the Labour Movement – workers, unions and members – as symbolised by a tree that conveys growth, protection and stability.
Contents
Chairman’s Message
4
SLF Board of Directors
8
Corporate Governance
9
Growing with U
11
The SLF Group
42
SLF Subsidiaries Board of Directors
44
Membership Listing
48
Corporate Information
49
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ANNUAL REPORT 2011
Chairman’s
Statement
“
Today, SLF has kept pace with the growth of the Labour
Movement by continuing to co-fund its initiatives. Over the
past decade, SLF has doubled its support for the Labour Movement
from a total of $74 million in the first five years (FY 2001/2002 –
FY 2005/2006) to $165 million in the following five years
(FY 2006/2007 – FY 2010/2011).”
Financial year 2010/2011 was another
good year for the Singapore Labour
Foundation (SLF). SLF continues to
strengthen its capacity to generate
financial resources in a sustainable way. In doing so, SLF is able to continue to
step up funding for core programmes to
improve the lives of working families in
partnership with the Labour Movement.
Financial Highlights
SLF is on sound financial footing. The
Group’s annual surplus and asset base
continue to enjoy healthy and sustainable
growth.
SLF’s total assets grew from $1.56
billion last financial year to $1.64 billion
this year, an increase of 5%. Over a
10-year period, SLF’s asset base has
almost doubled. The key contributors to
this growth are a prudently managed
investment portfolio whose value has
appreciated over time, and steady annual
contributions from the NTUC Social
Enterprises (SEs) and SLF properties.
Net surplus was $76 million this
year. While 32% lower than last year
because of the sharp market recovery
from the financial crisis resulting in higher
investment income last year, this was one
of the highest recorded surpluses in the
last decade. The overall growth trend
remains positive over the longer term.
Managing Investments More
Robustly
In order to generate long-term sustained
returns, SLF continues to refine the goals
and policy of its portfolio investments. This
has been done under the leadership of
the Investment Committee, headed by Mr
Ng Kok Song, which also oversees SLF’s
investment management approach.
One of the initiatives the SLF undertook
last year was to set up SLF Strategic
Advisers Private Limited (SSA), a whollyowned subsidiary to manage its portfolio
investment. SSA will enable SLF to
sharpen its focus to deliver long-term
investment targets. For instance, SSA will
be able to manage institutional funds
for external not-for-profit organisations
that share similar investment values and
goals, thereby expanding SLF’s investment
capabilities and achieving greater
economies of scale. In the past year, SLF also reviewed its
property investments and set out medium
term goals to enhance the social and
financial value of these investments. Action plans have been put in place to
achieve these goals over the next few
years.
Sustaining the Growing Impact
of the Labour Movement on
Working Families
In the past year, SLF continued to help
working families through funding
support to the Labour Movement under
LM2011 in the following areas: raising
the employability of workers; developing
new core services and benefits for
union members; and assisting the less
fortunate in the workforce. SLF’s support
also enabled the Labour Movement to
strengthen its capabilities to conduct
effective bipartite trade unionism at
the workplace and to be a constructive
tripartite partner at the national level.
SLF is very happy to be part of the
50th anniversary celebration of the
National Trades Union Congress (NTUC)
and Labour Movement in 2011. SLF is
honoured to be one of the 50 individuals
and organisations recognised by the
NTUC for their worthwhile contributions
to the Labour Movement over the last five
decades. Indeed, it has been a privilege for SLF
to support the development of the Labour
Movement. In SLF’s early years, the Labour
Movement played an important role in
establishing the new foundation, including
seeking donations from union members
and unionised companies. Today, SLF has
kept pace with the growth of the Labour
Movement by continuing to co-fund its
initiatives. Over the past decade, SLF
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ANNUAL REPORT 2011
has doubled its support for the Labour
Movement from a total of $74 million
in the first five years (FY 2001/2002 –
FY 2005/2006) to $165 million in the
following five years (FY 2006/2007 – FY 2010/2011).
Strengthening Partnership with
the NTUC Social Enterprises
SLF continues to strengthen its partnership
with the NTUC Social Enterprises.
The Board participated actively in
the brainstorming and discussions in
developing the NTUC SE 2015 Vision
which was shared by the Executive
Chairman of the NTUC Social Enterprise
Development Council, Mr Lim Boon Heng,
on 14 April 2011. The SE 2015 Vision
articulates a collective commitment by
NTUC Social Enterprises to expand their
social impact in the next five years. The
Vision builds on the extensive social
impact that the SEs already deliver today. Across the Group, 13,000 employees
serve an estimated two million customers
a year. A number of SEs have grown to
become market leaders in their respective
industries, for example: •
•
•
•
FairPrice in grocery retailing
Income in life, annuities, health and motor insurance
First Campus in childcare
LearningHub in continuing education and training (CET)
NTUC SEs will seek to grow their social
impact in three key ways – expanding
their role to stabilise the prices of essential
products and services; being innovative
in meeting new and emergent needs;
and expanding services to support
3-generational families in Singapore.
SLF supports the SE 2015 Vision fully. The NTUC SEs can count on SLF’s
continued support, whether in equity
investment or capability development
grants, as they expand their social impact
and make a greater difference in the lives
of working families.
Building up Organisational
Capabilities within SLF
In the past two years, SLF has also kept
up the momentum to beef up the core
management team in order to deliver
consistently high performance over
a sustained period of time. We have
strengthened our capabilities across the
board in investment, finance, human
resource and risk management.
In Appreciation
I would like to thank all my fellow
directors on the SLF Board and the
subsidiaries for your time, advice and
support. In particular, two long-serving
directors, Mr David Wong and Mr Oscar
Oliveiro, have stepped down from the
SLF Board and SLF Leisure Enterprise
Board respectively. I would like to place
“
I am honoured to have been able to serve on the SLF Board
since December 2001. Together with my colleagues on the
Board, we steered SLF through SARS and the global economic
downturn in 2008. We also stepped up SLF’s partnership with
the Labour Movement in implementing LM2011, and laying the
foundation for LM2015 and SE2015.”
on record my deep appreciation for their
dedicated service.
I would also like to extend a warm
welcome to Ms Tan Hwee Bin, Executive
Director of Wing Tai Holdings Group, to
the SLF Board. Hwee Bin was elected by
institutional members at the September
2010 AGM, and serves in the SLF
Investment and Audit Committees. On behalf of the SLF Board, I would
like to thank all the institutional members
and partners of SLF, especially NTUC,
unions and Social Enterprises, for their
unwavering support. All stakeholders of
SLF can be assured of SLF’s continued
commitment to support the Labour
Movement to help working families in
Singapore make a better living and live a
better life.
I am honoured to have been able to
serve on the SLF Board since December
2001. Together with my colleagues on
the Board, we steered SLF through SARS
and the global economic downturn
in 2008. We also stepped up SLF’s
partnership with the Labour Movement
in implementing LM2011, and laying the
foundation for LM2015 and SE2015. I
will be officially stepping down after the
AGM on 2 September 2011, and will be
succeeded by Gan Kim Yong, the Minister
for Health. I am confident that Kim Yong
will lead the Board forward capably to
strengthen SLF’s effectiveness in delivering
its mission.
Mah Bow Tan
Chairman
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ANNUAL REPORT 2011
SLF Board of Directors
Corporate Governance
As at 31 March 2011
As at 31 March 2011
Stephen Lee
Tan Hwee Bin
Director
Director
Ng Kok Song
Bobby Chin
Director
Director
BOARD MATTERS
The Singapore Labour Foundation (SLF) is overseen by
a Board, comprising seven members. In accordance
with the SLF Act, five members are appointed by the
Minister for Manpower, of which three are advised by
NTUC, and the remaining two elected by members at
the annual general meeting. All the Board members
are non-executive, drawn from the public and
private sectors with a broad range of experience and
expertise in the 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 up to
three years, subject to renewal.
Lim Swee Say
Director
SLF Audit Committee
Chairman
Bobby Chin
Lim Boon Heng
Deputy Chairman
Conduct of Affairs
The Board met four times in FY 2010/2011 to
provide strategic direction, review major corporate
policies and approve financial statements and
annual budget, including support for major initiatives
of the Labour Movement. In addition, the Board
meets annually with the subsidiaries boards and
management for the Group’s corporate planning
seminar to discuss the key focus, priorities and
workplans for the next financial year. Management
also engages the Board as and when necessary to
deliberate on significant transactions or issues.
Mah Bow Tan
Chairman
SLF Senior Management
Members
Stephen Lee
Tan Hwee Bin
SLF Investment Commitee
Chairman
Ng Kok Song
Members
Lim Boon Heng
Stephen Lee
Tan Hwee Bin
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, SLF Strategic Advisers Pte Ltd
Board members are provided with the necessary
information in advance of the meeting for them to
effectively discharge their responsibilities at each
Board meeting. 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 two Board Committees, namely the
Investment Committee and the Audit Committee, each
commissioned with respective Terms of Reference as
approved by the Board. Minutes of Board Committee
meetings are circulated to all Board members.
Investment Committee
The Investment Committee is chaired by Mr Ng Kok
Song. Its current members are Mr Lim Boon Heng, Mr
Stephen Lee and Ms Tan Hwee Bin. The Investment
Committee reviews and recommends policies on the
investment framework to achieve the desired targets
for the long-term funding commitment to the Labour
Movement. The Committee also sets investment
guidelines in line with policies as approved by the
Board.
The Investment Committee met four times in FY 2010/2011. Audit Committee
The Audit Committee is chaired by Mr Bobby Chin. Its current members are Mr Stephen Lee and Ms Tan
Hwee Bin. The Audit Committee assists the Board to
maintain a high standard of corporate governance,
particularly in the areas of risk management,
financial reporting and 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.
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ANNUAL REPORT 2011
The SLF Audit Committee met three times in FY
2010/2011. It had held meetings with the internal
and external auditors during FY 2010/2011, 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 Committee, SLF will
be putting in place a risk management framework
across the Group. The Management Risk Committee
comprising Management staff across the Group will
co-ordinate the risk management initiatives to ensure
that risks are identified and adequately addressed.
SLF’s internal control framework aims to ensure that
assets are properly safeguarded, 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.
Internal Audit
The Internal Audit Function is outsourced to an
independent firm, Ethos Advisory 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. Findings and
recommendations from the audits are addressed to
the level of management who need to know and are
able to take appropriate action. Internal Audit reports
functionally to the Audit Committee and has full and
direct access to the Committee.
External Audit
KPMG was appointed for the audit of SLF’s financial
statements. Arising from the audit, KPMG reports to
the Audit Committee its findings on significant audit,
accounting and internal control issues, and also
recommends possible ways in which the system and
procedures can be improved.
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.
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 Committee Chairman directly, were created to
facilitate easy access by the staff. Seminars on Strengthening Corporate
Governance and Risk Awareness
To inculcate a culture of risk awareness in the Group,
the Internal Audit Section organised a management
workshop and two seminars for all staff of the SLF
Group in February 2011. Other than sharing the
common observations and lessons learnt from audits
conducted for the Group, the workshop and seminars
also covered IT security awareness and studied high
profile fraud cases. These sessions had heightened the
risk awareness of the staff, and helped them to better
appreciate the importance of financial accountability,
transparency and prudence.
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In Financial Year 2010/2011, the Singapore Labour Foundation (SLF)
continued its strong partnership with the Labour Movement (LM) to help
it achieve its vision of securing a better and more meaningful life for
workers of all collars, ages and nationalities in Singapore. To further
the development of a strong and progressive LM, the SLF committed
$37.3 million in the year to do its part for workers, union leadership
and lower-income union members.
The stories that follow highlight SLF’s key contributions in 2010/2011 to
the Labour Movement in support of the following outcomes:
• Enhancing workers’ employment and employability
• Developing strong union leadership
• Strengthening industrial relations
• Developing effective Labour Movement social enterprises
• Helping less privileged workers
• Growing an inclusive and vibrant union membership base
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ANNUAL REPORT 2011
In A Class
Of Its Own
Enhancing Workers’
Employment And
Employability
I
The SQC will help e2i staff be more focused in providing assistance to jobseekers.
“
The SQC will give that compass
or bearing as a framework to
follow through so that from the top to
the bottom, left and right, every resource,
every person, is focused on achieving
the right outcome.”
Mr Ang Hin Kee, Chief Executive Officer, e2i
n July 2011, Employment and Employability
Institute (e2i) was awarded the Singapore
Quality Class (SQC) certification by SPRING
Singapore. SQC is the national recognition for
organisations with management systems to achieve
all-round business excellence. The SQC achievement
follows e2i’s ISO 9001:2008 certification the year
before. Chief Executive Officer Ang Hin Kee recalled:
“Once we received our ISO certification, we decided
that since the operations of key processes are in
place, let’s look at all-round business excellence.”
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ANNUAL REPORT 2011
“
When it comes to planning or
leadership, things are consistent so
even if you have new staff, there’s this
sense of confidence that there will not
be too much ambiguity.”
Mr Ang Hin Kee, Chief Executive Officer, e2i
Enhancing Workers’ Employment
and Employability
With the SQC, e2i staff
have no problem offering
service with a smile.
The desire to serve Singaporean workers and
jobseekers better drives e2i to constantly improve
itself. The SQC recognises the e2i team’s dedication
and serves to motivate them further to help workers.
The business excellence framework also minimises
ambiguity as they go about their duties. All new or
existing employees will have the same “compass” to
give them bearing as to what they should be doing and how they should be doing it.
“When it comes to planning or leadership, things
are consistent so even if you have new staff, there’s
this sense of confidence that there will not be too
much ambiguity,” said Mr Ang. The SQC certification will also benefit e2i’s
stakeholders such as the SLF, NTUC and the
Singapore Workforce Development Agency (WDA).
“It gives them the certainty that everyone in the
organisation speaks the same language when
it comes to the processes in place, not just the
operation front but at all fronts, whether it is about
leadership, target measurement or planning,”
explained Mr Ang.
Achieving the SQC and ISO 9001: 2008
certifications is part of e2i’s journey as it gears up
for its new campus, the Devan Nair Institute for
Employment and Employability.
As the marketplace for workers, employers,
and training providers, the Employment and
Employability Institute (e2i) exists to create better
jobs and better lives for all workers. In 2010,
e2i assisted over 40,000 workers through its 3P
efforts: Placement, Professional development and
Productivity improvements. The 40,000 consist of
the following:
•
•
14,700 jobseekers were placed into better jobs. Of these, over 5,700 (38%) were 50 years old and above.
23,100 workers upgraded their skills and deepened their competencies. This comprised •
rank-and-file workers (70%) and Professionals, Managers, Executives and Technicians (PMETs) (30%).
2,600 workers were able to be more productive through projects under the e2i-administered $40 million Inclusive Growth Programme (IGP).
Building on ISO certification, e2i attained the
Singapore Quality Class (SQC) in 2011. Moving
forward, e2i targets to assist 50,000 workers this
year and will work closely with WDA to gear up
towards the setting up of the Devan Nair Institute for
Employment and Employability, located at Jurong
East, in 2013.
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ANNUAL REPORT 2011
Better Productivity,
Better Wages
With e2i’s IGP
H
Stewarding Supervisor Mr Alex Fang is now more productive at work
with the automated garbage system.
elp companies improve
productivity and share the
gains with workers? e2i’s
Inclusive Growth Programme (IGP)
launched in 2010 does just that.
Royal Plaza on Scotts, a branch of
the Food, Drinks and Allied Workers’
Union (FDAWU), is one of the companies
that has tapped on IGP to increase its
productivity and improve the wages of its
low-wage workers.
One of the productivity initiatives it has
embarked on is the automated garbage
system, where a rail track motor conveyor
system is laid to transport the garbage bin
uphill automatically. This has improved
productivity by 50% and enhanced
workplace safety for Stewarding
Supervisor Alex Fang, 25.
“Before the new equipment was installed,
two persons were needed to manually
push the garbage bin up a steep 100
metre slope. This was not only tiring, but
dangerous as well, especially on rainy
days. With this new equipment, we only
need one person to perform the job by
operating the machine. The other person
is now re-deployed to do other duties.
The dangers of slipping when pushing the
bin up on rainy days is also eradicated,”
shared Mr Fang.
Another productivity initiative
introduced by Royal Plaza on Scotts was
the motorised trolleys for transporting
items around the hotel. With the IGP
funding, it increased their fleet of
motorised trolleys from two to eight and
has intentions to increase this by another
38. The move was welcomed by
Housekeeping Attendant Madam Jalilah
Jantan, 41. She had difficulty pushing
the old heavy trolley around and spent
about an hour cleaning 15 rooms. Now
with the motorised trolleys, she needs just
30 minutes. Madam Jalilah is now able
to focus on her main task: to make up the
rooms well.
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ANNUAL REPORT 2011
Developing
Strong Union
Leadership
Housekeeping attendant Madam Jalilah Jantan finds it easier to clean rooms with the new motorised trolleys.
She said: “In the past, pushing the trolley on the
carpet was very tough and I always had back aches.
There was once I was so tired that I couldn’t even
do housework for a month! But with the motorised
trolley, I can do my job better and faster as I have
more energy to clean the rooms and can travel from
room to room more easily.”
Royal Plaza on Scotts has lived by the spirit of IGP
and shared their productivity gains with their staff.
Those involved in the improved Garbage Clearing
System will see a 7% monthly wage increment, a
one-time three-month bonus payout as well as a 4%
annual increment for 2010. Staff involved with the
motorised trolley system will also see an average
increase of 4% in their monthly salary as well as a
one-time 0.5 month bonus payout.
“For this year, overall, we have adjusted the
salaries of our staff from all levels in areas where we
have managed to redefine the job scope to something
that encompasses more roles and responsibilities. In
this sense, salary increases are tagged to productivity
increases. We saw salary increases of between
10% to 30% for our guest service officers, butlers,
concierge, housekeeping and stewarding attendants,
as compared to the usual 4% annual increase.
Overall, I think the entire organisation has really
benefitted from this programme,” said Mr Ian Ang,
Director of Finance and Business Support.
“
In this sense, salary increases are
tagged to productivity increases.
We saw salary increases of between
10% to 30% for our guest service officers,
butlers, concierge, housekeeping and
stewarding attendants, as compared to
the usual 4% annual increase. Overall,
I think the entire organisation has really
benefitted from this programme.”
Mr Ian Ang, Director of Finance and Business Support,
Royal Plaza on Scotts
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ANNUAL REPORT 2011
Pursuing
Progress
To Be Effective
T
he Ong Teng Cheong Labour Leadership
Institute (OTCi) is a centre for labour
education and training in Singapore.
Through the spectrum of programmes offered,
ranging from short courses to diploma courses, OTCi
is an important platform for further capacity and
capability development of Singapore’s unions and
union leaders.
Two union leaders who have benefitted from
OTCi’s programmes are Mr Mohamed Rasi Taib,
President of the National Transport Workers’ Union
(NTWU) and Mr Charles Khng, General Secretary
of the Attractions, Resorts & Entertainment Union
(AREU).
As President of NTWU, Mr Rasi believes that to
perform his role effectively and efficiently, he must
constantly be keen to upgrade and be equipped with
the right knowledge. Hence, he pursued a Diploma in
Employment Relations at OTCi.
“
The courses that they hold are
very good and fruitful for the
day-to-day running of the union.”
Mr Mohamed Rasi Taib (right), President, National Transport
Workers’ Union, who pursued a Diploma in Employment Relations
at OTCi
Mr Charles Khng has benefitted from his participation in several engagement events at OTCi.
“I think basically, being a unionist, we are in
touch with workers and members all the time and
OTCi has been doing a great job in putting up
courses for union leaders. The courses that they hold
are very good and fruitful for the day-to-day running
of the union,” he noted.
Having just graduated from his course in June this
year, Mr Rasi has only good things to say about the
experience.
“As an adult worker and adult learner, we don’t
have much time to spend. If you have a family, you
don’t actually have a lot of time for yourself. OTCi
understands this and they are very flexible with the
students. They also understand our needs as a father
or a family member.
“I think their infrastructure and facilities are great,
and they provide very good support. I think any unionist who comes will see that.”
Similarly, Mr Khng has reaped the benefits of
OTCi’s engagement places. He regularly attends
engagement programmes and events organised by
OTCi as he looks to be an even more effective leader
in his union and at his workplace.
“OTCi presented me with the opportunity to see
what other organisations and companies are doing
“
OTCi presented me with the
opportunity to see what other
organisations and companies are
doing and learn from their different
management styles, initiatives, difficulties
and work processes.”
Mr Charles Khng, General Secretary, Attractions, Resorts &
Entertainment Union, who has attended many engagement
programmes and events at OTCi
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ANNUAL REPORT 2011
and learn from their different management styles,
initiatives, difficulties and work processes. They
have also presented me with better perspectives
and better understanding of workers’ concerns and
issues encountered by organisations and industries at
different levels. More importantly, I’ve learned how
these companies tide through difficult times. During
the various learning journeys and dialogues, I was
able to exchange many views and experiences with
union leaders and people from different industries,”
he detailed.
For Mr Khng, the experience at OTCi has been
an enriching one. “OTCi’s Learning Journeys
and Dialogue Sessions have made me realise the
importance to take a constructive approach to
furthering workers’ welfares and interests, and at
the same time maintain a safe and productive work
environment working with the end in mind of win-win
outcomes in a tripartite arrangement,” he said.
Mr Mohamed Rasi Taib (left) and Mr Charles Khng
Developing Strong
Union Leadership
SLF strongly supports capacity building and
capability development of unionists in leadership
and union governance. To this end, SLF partners
the Ong Teng Cheong Labour Leadership Institute
(OTCi) to support union leadership growth and
enhance union leaders’ professional capabilities.
SLF contributed $1.8 million in 2010 towards this end.
Constructive union leaders, who demonstrated
exemplary leadership and worked tirelessly with
the tripartite partners to create win-win outcomes
for workers, employers and the Government, are a
key contributing factor to the success of tripartism
in Singapore.
SLF’s funding supported more than 5,000 training
places for certificate and diploma programmes,
short courses and workshops. It also funded 4,500
places for various programmes including learning
journeys, evening talks, leadership dialogues,
meetings with unions’ top three leaders and union
visits.
Strengthening
Industrial Relations
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ANNUAL REPORT 2011
Mr Joel Li and Ms Sabrina Liow talk about the important role played by IROs in serving workers.
T
IROs Bring Benefit
To Workers
he job of an Industrial Relations Officer
(IRO) at NTUC encompasses many aspects
besides core Industrial Relations (IR) duties.
Mr Joel Li from the Singapore Industrial & Services
Employees’ Union (SISEU) and Ms Sabrina Liow
from the United Workers of Electronic and Electrical
Industries (UWEEI) would know.
Mr Li, who has been an IRO for about a year,
shared: “One moment, you can be negotiating with
the Chief Executive Officer or Managing Director
for higher wages and bonuses for workers, the
next moment with the worker to accept it. You will
also need to organise huge scale events or even
seminars. The job exposes you to various different
experiences.”
Most importantly, the job allows Mr Li and Ms
Liow to make a difference to the lives of workers,
by representing their interests and providing them
with opportunities to voice their views to their
management.
“
This job is definitely very
challenging because what we
do and what we conclude in every
negotiation affects the livelihoods
of many people. We need to be
objective at all times, balancing both
the members’ needs and the company’s
sustainability and competitiveness in the
long run. It’s like fulfilling a social mission
but with business sense.”
Ms Sabrina Liow, Industrial Relations Officer,
United Workers of Electronic and Electrical Industries
Their current task is to encourage companies to
embark on productivity measures to bring benefit
to workers through gains sharing and better skills.
IROs act as a bridge between companies and the
relevant resources, and the workers by helping to
secure funding, skills training or expert advice in
productivity while encouraging workers to embrace
productivity efforts. “At the ground level, I talk to the
union leaders and workers and hear their concerns
on the implementation of certain measures, and try to
resolve these issues with the management,” said Ms
Liow, who became an IRO two years ago.
Mr Li recently helped one of his branches,
Markono Print Media Private Limited, to improve
their productivity. He shared: “They were a model
example for Small and Medium Enterprises (SMEs)
as they tapped on the Inclusive Growth Programme
(IGP) to invest in new machinery to automate their
printing process. This has helped the workers and
the company to enhance productivity. The workers
will also stand to gain at least 7% to 12% increase in
their annual compensation through gains sharing.”
The nature of the IROs jobs also require them
to be flexible and build up interpersonal skills and
emotional intelligence. Ms Liow finds that “every
company, every member, every grievance case is
unique and there is no one solution for everything.”
Being in the volatile electronics and electrical sector
has also taught her that the companies’ business
situations can change very quickly, and she is always
on her toes to adapt to situations.
“
I think IROs should play a role
in encouraging companies to
leverage on the various fundings which
help to offset their capital investments to
improve productivity. We should be the
bridge between the company and the
funding partners.”
Mr Joel Li, Industrial Relations Officer,
Singapore Industrial & Services Employees’ Union
Mr Li and Ms Liow also play a role in developing
strong union leadership by helping to identify
existing branch leaders and encourage them to
undergo relevant training which will equip them
with the IR knowledge and skills needed for higher
leadership positions. To encourage flow-in of new
leaders at the branch level, they also help to identify
potential branch officials from the various unionised
companies.
At the end of the day, despite juggling many
responsibilities, the IROs never lose sight of the
bottom line: putting workers’ interests first.
IROs are full of passion and are always
engaging individuals wherever they go.
Strengthening
Industrial Relations
Recognising the importance of harmonious
industrial relations to Singapore’s economic success
and tripartism framework, SLF continued to fund
the expansion of industrial relations capability and
capacity with a grant of $2.3 million in 2010.
This has enabled the Labour Movement to expand
its pool of Industrial Relations Officers by 25% in
2010. 26
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ANNUAL REPORT 2011
Gaining Best-In-Class Training
Developing
Effective
Labour Movement
Social Enterprises
For A Better Future
I
n a global city like Singapore where
opportunities abound and competition for
them intensify, PMETs need to stay a step
ahead of the crowd by upgrading their skills and
competencies to stay relevant. This could mean
deepening skills in their fields and obtaining broad
competencies transferrable to other industries.
Mr Edmund Lau, 39, is someone who clearly
shares this view. Like most PMETs, the nature of
his job often involves a hectic work schedule and
lifestyle. However, that did not stop him from making
the time for skills upgrading.
“
You are able to adopt and learn
from international best practices
by attending various certified courses
and you get a global view.”
Mr Edmund Lau, Managing Director,
Royal Edmundson International Enterprise
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ANNUAL REPORT 2011
Enjoying Life With
A Plus!
Mr S Sakthidaran is happy
with the many pluses and
privileges of the U Plus!
Programme.
LearningHub has tied up with the New York-based renowned Fashion Institute of Technology.
Over the years, he enrolled in numerous short
courses, ranging from language to leadership,
to enrich himself and improve his proficiencies.
As Founder and Managing Director of Royal
Edmundson International Enterprise, a company
dealing with environmentally-friendly products, he
places great importance in continuous upgrading to
remain competitive in a global market.
In order to gain an in-depth understanding about
the industry of his business, he pursued a Master of
Science in Environmental Science to complement his
Master of Business Administration in International
Business. Despite being armed with adequate
academic qualifications, Mr Lau does not rest on his
laurels when it comes to improving his knowledge
and skills.
His constant quest for knowledge led him to NTUC
LearningHub’s Next U where he first enrolled in the
Project Management Professional certification, a
full-time programme for five days in January 2011.
Subsequently, he continued his learning journey
with Next U’s best-in-class training programmes
such as ‘Leading & Sustaining a Culture of Service
Excellence’ by the Disney Institute and the Certified
Lean Sigma Black Belt.
Mr Lau believes that in order for PMETs to be
ready for the future, it is important for them to
broaden their skills. He said: “You could be in lower
or middle management but in the next five to 20
years, you could be a Chief Executive Officer. As a
CEO, you have to have a diverse understanding of
the different aspects of business such as marketing,
finances, supply chain and customer management.
That is why you have to continuously upgrade
yourself to understand different aspects both
within and beyond your industry. It helps you stay
employable and adds value to your career.”
Mr Lau looks forward to attending more courses
with Next U and recommends it to other PMETs. He
said: “Next U, under NTUC LearningHub, has very
comprehensive programmes and higher-end courses
for PMETs. In future, I could be looking at other
courses from Next U, such as the John Robert Powers
programmes to further understand personal growth.”
L
ife has become more enjoyable for Mr
S Sakthidaran, 38, ever since he joined
NTUC’s Plus! programme. To date, he,
his wife and their two young children have made
use of the Plus! programme countless times to take
advantage of discounts at the places they frequent.
The Plus! programme was conceived with NTUC’s
objective to bring more relevant privileges and
benefits to union members and customers of NTUC’s
Social Enterprises, and help members to live a better
life with discounts and meaningful rewards. It is an
extension of the LinkPoints loyalty programme.
Mr Sakthidaran’s favourite recreational place is
Downtown East and he enjoys many benefits and
privileges there. He and his family have spent many
hours having fun at the bowling alley and Wild Wild
Wet theme park.
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ANNUAL REPORT 2011
“
NTUC’s 12 Social Enterprises (SEs) were
established to help working people and
their families better manage the cost
of living and stretch their hard-earned
dollar. Among these, a number of SEs are
today market leaders in their respective
industries such as NTUC FairPrice in
grocery retailing; NTUC Income in life,
annuities, health and motor insurance;
and NTUC First Campus in childcare.
NTUC SEs serve an estimated two million
customers a year.
The Social Enterprise Development Fund
was set up in January 2007 to support the
SEs’ effort to become best-in-class in their
respective areas and expand their social
impact. SLF has contributed $14 million,
supporting a total of 58 projects since the
Fund was set up.
“
This programme is very useful
to accumulate LinkPoints
and make payment. It is very
convenient and has become part of
my everyday life.”
Some of the major projects include:
Mr S Sakthidaran, 38, Plus! programme user
“The Plus! programme is accepted at many
places and is really useful for purchases as well as
entertainment and games. My family and I go out
for all these activities and my kids love the places.
The Plus! programme provides additional six months
validity for LinkPoints and I can redeem the cash
immediately at NTUC outlets,” he shared.
Beyond these, Mr Sakthidaran has also enjoyed
member privileges for ticket booking of events like the
Formula 1 Singtel Singapore Grand Prix.
“I purchased F1 Grandstand tickets at members’
discounted rates of 20%. It was really a good deal!
Developing Effective Labour
Movement Social Enterprises
Vision SE2015
I booked these tickets at the last minute. Even then, I
got tickets for the Friday Practice and Main Race on
Sunday.
“Without the Plus! programme, I may have had to
pay the original full price and I may not even get the
tickets because the open ones were already sold out.”
He intends to continue enjoying the many benefits
and privileges of the Plus! Programme wherever he
goes.
“This programme is very useful to accumulate
LinkPoints and make payment. It is very convenient
and has become part of my everyday life.”
The Social Enterprise Development
Council (SEDC) of the NTUC, which
consists of the Chairmen of the 12 Social
Enterprises, the President, SecretaryGeneral and the Secretary for Financial
Affairs of the NTUC, spearheaded the
initiative to chart the collective SE2015
vision. SLF provided the necessary
funding for this strategic review on the
SEs’ collective commitment to expand their
social impact in the next five years. The
key thrusts of the direction was shared at
the Vision SE2015 Seminar on 14 April
2011.
Firstly, NTUC SEs will expand their role to
help stablise the prices of essential goods
and services to support families to stretch
their hard-earned dollar. Secondly, NTUC
SEs will be innovative in their approach
to meet new, emergent needs. Thirdly,
NTUC SEs will expand services to support
3-generational families in Singapore.
Development of New, Bestin-Class Training Programmes
for Professionals, Managers,
Executives and Technicians
(PMETs)
With the launch of Next U, NTUC
LearningHub now offers high quality
executive training programmes
targeted at PMETs in Singapore. NTUC
LearningHub has partnered worldrenowned institutions such as Disney
Institute, University of California - Berkeley
Extension, Juran Institute, The W. Edwards
Deming Institute, and Fashion Institute
of Technology, to develop best-in-class
executive training programmes. SEDF
provided a $750,000 grant to Next U to
develop its new capabilities.
Plus! Loyalty Programme
Plus! was launched in 2010 to expand
the existing Linkpoints loyalty programme
for union members and customers of
NTUC SEs. Plus! provides NTUC SEs
with the platform to increase customer
loyalty and another channel for the
Labour Movement to deliver privileges
and benefits to its members. Since 2007,
SEDF has contributed a total of $550,000
to support the development of NTUC Link
and the Plus! programme.
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ANNUAL REPORT 2011
Helping
Less Privileged
Workers
Welcome Relief In
Tough Times
A
Mr Shahiful Bahri Abdullah (in striped t-shirt) and his family benefitted from the various assistance programmes under the U Care Fund.
n initiative of a Caring Labour Movement
and enhanced by funding from the
Singapore Labour Foundation, the NTUC
U Care Fund continues to provide relief in workers’
lives, in both small and big ways, and during good
and bad economic times.
“Though our economy has recovered strongly
from the last downturn, the current concerns of our
members and workers are very much related to the
rising cost of living. Together with NTUC’s affiliated
unions and association, NTUC Social Enterprises
and our tripartite partners, we hope to improve their
lives through the U Care Fund. It is our endeavour
to continuously work together as a Caring Labour
Movement,” said NTUC Alignment Director (Care
and Share) Zainudin Nordin, whose department
administers the U Care Fund.
The Fund has helped in various ways to offer
some relief to lessen the financial burden of lowincome workers. An EPCOS Singapore technician,
43-year old Shahiful Bahri Abdullah was the sole
breadwinner of his family of five, with three schoolgoing children.
He recalled: “The economy was not very good
in 2009 and my salary at my previous job was half
of what I am getting now. It was difficult to cope,
“
We have to be realistic in the
sense that when we ask for help,
it is not a matter of simply saying we are
unable to cope…It is a matter of asking
for help when we really need to. But
you don’t just cling on to that help alone
because it is just a temporary solution.
We must work hard towards a long-term
solution.”
Mr Shahiful Bahri Abdullah, 43, Technician,
a recipient of the U Care Fund programmes supported by the SLF
especially when I was the only one earning. My wife
had not been working for many years because she
was caring for our children. She only started working
as a production operator this year.”
Fortunately, he was able to count on the U Care
Fund to provide some financial relief to tide him
through the downturn. With the support from his
union, the United Workers of Electronic and Electrical
Industries, Mr Shahiful and his family received a
total of $705 from the U Care Fund last year. This
comprised $375 worth of U Care Back-to-School
vouchers for his three children, a $200 scholarship
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ANNUAL REPORT 2011
for one child, $30 worth of U Stretch vouchers and
a $100 family package for the Family Recreation
and Fun Carnival.
“We are very thankful for the U Care Back-toSchool vouchers because cash is normally used
up very fast. When we received the vouchers, the
children told me they needed new spectacles. So
straightaway, we went to the optical shop, which
also awarded us with LinkPoints. Furthermore, the
U Stretch vouchers came in very handy at NTUC
FairPrice. They are like the ‘bread-and-butter’ for
my household; they are good for groceries and
basic needs in our household expenditure,” said Mr
Shahiful.
Helping Less Privileged Workers
U Care Fund
The NTUC U Care Fund was established in February
2009 to consolidate the Labour Movement’s
fundraising efforts to better the welfare of lowerincome members and their families.
In 2010, SLF contributed $3.5 million to the Fund,
which disbursed over $8.3 million to help a total of
about 112,000 lower-income union members and their
families. SLF’s contribution to the Fund helped boost
assistance to the following categories of recipients of
the U Care Fund:
Elderly
• Eldercare Trust: A total of $1 million was contributed to the Eldercare Trust Fund that supported programmes to assist the elderly to live more independent and dignified lives. A total of about 3,600 seniors were helped through the following programmes and assistance schemes:
- provision of direct financial assistance to seniors from lower income families to enable them to use the day care and home care services.
- setting up of new Silver Circle day care centres which offer seniors an active rehabilitation programme.
Families
Other Initiatives:
• U Stretch vouchers: close to $1 million worth of vouchers were handed out to 31,000 members to SLF also assisted lower-income union members and
help them cope with rising costs of daily necessities. families through the following Labour Movement
programmes:
Children
NTUC GIFT
• Back-to-School vouchers: $3.72 million worth of NTUC GIFT is a group insurance that covers all union
vouchers were given out to some 30,000 school-
going children of members to help them defray the members against death and total permanent disability.
Members enjoy free insurance coverage of up to
cost of school supplies for the new school year.
$30,000. The policy automatically covers all eligible
• Bursary and Scholarship Top-Up: $0.5 million members and their spouses up to 65 years of age. SLF
was extended to unions to provide additional supports NTUC GIFT with an annual contribution of
funding support for bursaries and scholarships $0.9 million.
which benefitted more than 7,000 students.
• Bright Horizons Fund: $1 million was contributed to help young children from lower-income families In 2010, close to 700 claims with a total payout of
$3,052,000 were paid out under NTUC GIFT.
to attend pre-school and supplementary programmes. Three hundred children were helped SLF Special Relief Fund (SRF) and
through the following programmes: Hardship Grant
- Financial assistance schemes providing Set up in 1978, the SRF provides financial assistance
childcare fee subsidies to needy families. to victims of industrial accidents during the interim
- Read-to-Reach literacy programmes helping period before they receive Work Injury Compensation.
children from lower income families who are identified as weaker in words recognition, A total of $55,820 was disbursed to 45 workers or
their next-of-kin in FY 2010/2011.
pronunciation and reading to improve their skills and build self-confidence. - Learning excursions providing greater exposure A total of $85,000 in hardship grants were given to
needy families of union members in FY 2010/2011.
to environments outside of school settings to enrich the learning experiences of less privileged children.
Growing An
Inclusive And
Vibrant Union
Membership Base
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ANNUAL REPORT 2011
Where Family
Memories Are
Made
Growing An
Inclusive And
Vibrant Union
Membership Base
As the key voice of workers in Singapore, the
Labour Movement aims to reach out to workers of
All Collars, Ages and Nationalities (“All C.A.N.”)
and grow its union membership base to become
even more inclusive and stronger so as to continue
to be an effective and constructive partner in
tripartism. SLF supports the Labour Movement to provide
quality and affordable lifestyle and recreational
facilities to unions, workers and their families
through the Orchid Country Club, Aranda
Country Club and, in partnership with NTUC
Club, the Costa Sands Resort at Downtown East
and Sentosa.
J
Madam Jenny Tay and her family enjoying a splashing good time at the poolside at OCC.
enny Tay, 36, and her family ran all over
Orchid Country Club (OCC) on 12 April
2011 as part of U Family’s “Family Night
Amazing Race”. They sprinted to various stations
such as the golf course, poolside and tennis court
where they had to complete certain tasks before
moving on to the next station. Their enthusiastic
efforts paid off when her family’s group, which
consisted of two other families, won the first prize in
the Race. That night was a fun memory for her sons, and on
a subsequent visit to OCC, they could still recall the
places they played as part of the Race. Madam Tay
said: “We joined the ‘Family Night Amazing Race’
as a family just for the fun. I’ve participated in other
similar race games and so I thought this is something
miniature to have fun with the kids.”
Over the years, OCC has become a popular
destination for U Family to hold events. It is also the
choice venue for other Labour Movement activities
like the U Grand Masters Bowling Championship as
well as international golfing events like the prestigious
Handa Singapore Classic 2010.
U Family’s events, in particular, provide an
important platform for Madam Tay’s family to bond.
Despite his busy schedule, her husband, Mr Chew
Hock Beng, 36, tries to make time for family events
which include many different activities. A venue like
OCC allows them to enjoy many facilities under
one roof such as the Vanda Terrace, Peach Garden
Chinese Restaurant, Kitagawa Restaurant, Zi Char@
The Green and Orchid Bowl as well as wide ranging
social and recreational facilities. Madam Tay is
also keen to bring her family to stay over at the
Orchid Lodge resort-style hotel rooms. “Instead of an
overseas trip, we can just come here to OCC for a
“
When we go out for family
activities, we have fun and get
to recharge ourselves.”
Jenny Tay, mother-of-three whose family had fun participating
in U Family’s “Family Night Amazing Race” at Orchid Country
Club
short holiday,” she said.
With its golf facilities, Madam Tay will also
consider letting her sons participate in OCC’s golf
activities tailored for kids. Home to My Golf Kaki,
OCC provides a good family-friendly environment
for children to get started in golf.
Whatever activity the Chews choose to do as a
family, ultimately it is about bonding and creating
more memories together.
Orchid Country Club (OCC)
In FY 2010/2011, OCC and union members
were able to enjoy various new services and
facilities:
• NTUC Club’s My Golf Kaki Academy providing golf lessons in May 2010;
• NTUC Foodfare’s outlet at Vanda Terrace in June 2010;
• NTUC FairPrice supermarket in September 2010; and
• A renovated NTUC Club’s Orchid Bowl in September 2010
OCC also continued to build strong relations
with NTUC communities. OCC collaborated with
NTUC Club and U Family for major events such
as Campus Arete, Treasure Venture and Family
Night Out. Over the year, OCC was the host
venue for various sporting events, such as bowling
events, golf tournaments, and seminars and
conferences held by the unions.
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ANNUAL REPORT 2011
The Chew family happily tucking into a
delicious meal at the Vanda Terrace.
OCC was honoured to be awarded the Top 3 Best
Golf Courses in Singapore by Asian Golf Monthly in
2010. The other two golf courses were Tanah Merah
Country Club and Sentosa Golf Club. OCC was also
honoured to be selected to host the inaugural Handa
Singapore Classic, giving the Club much exposure in
international media.
Aranda Country Club (ACC)
In FY 2010/2011, ACC continued to actively work
with various Labour Movement communities (U
Sports, nEbo, U Family, U Live), NTUC Membership,
NTUC Club and PLAY Cluster in organising various
sporting events, F&B promotions and offer of
executive suite stay packages for ACC and union
members and their families.
Among these activities were weekly, monthly and adhoc cycling adventure for its cycling enthusiast group
GP Riders, group participation through U Sports in
major sporting events such as, U Run, OCBC Cycling
Challenge, Duathlon Challenge, Yellow Ribbon
Prison Run, Adidas Sundown Run and Bay Run
(Sheares Bridge Run). Educational tours and nearby
overseas trips with members of the Labour Movement
communities also helped in building camaraderie
and greater family bonding of members.
An estimated 150,000 union members and their
families have participated in activities and enjoyed
the facilities in OCC and ACC for the year in review.
U Portal and Service Excellence
SLF also provided multi-year funding to support
the Labour Movement’s effort to reach out to its
membership base through the internet and new
media, and also to enhance its customer service
quality.
U Portal
U Portal, a three-year development project of NTUC
was started in 2009 and is the new gateway to
the Labour Movement. The first phase of U Portal
went live on 1 May 2010. With another $2 million
funding from SLF in 2010, U Portal has been further
developed to provide e-services to union members.
This accomplishment signifies the beginning of a new
way of delivering membership services to current and
future members for greater convenience.
To date, in addition to NTUC, 16 unions are also
reaching out to their respective membership base
through the U Portal infrastructure. Service Excellence
In 2010, SLF also supported the Labour Movement’s
initiative for Service Excellence with a grant of
$0.2 million to build new capabilities within Labour
Movement to improve customer experience:
• To transform the NTUC Brand Customer Experience through improvement in process and service capability, and innovative services.
• To support the Labour Movement social enterprises
and unions in building and strengthening their capability in delivery service.
SLF Grant and SLF Sponsorship Scheme
for Unions
Since 2005, SLF has been providing every union/
association a grant that is double the amount of its
annual affiliation fees to SLF. Affiliates could use their
SLF Grant for a wide range of purposeful activities,
such as group activities organised by affiliates for
their members, OTCi or e2i supported training
courses and activities related to Labour Movement
initiatives.
The SLF Grant was well received by the affiliates. Of
the $0.5 million set aside in 2010, ninety per cent
were utilised.
SLF also provides each affiliate with an annual
amount of $3,000 for affiliates to organise activities
for their members. Twenty-three unions tapped on
this sponsorship and SLF will continue to encourage
more unions to do so.
Supporting NTUC 50
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ANNUAL REPORT 2011
“
We are happy that SLF supported
our celebratory events. With
SLF’s strong support, we were able to
celebrate with the dinner and do our
commemorative publications better.”
Mr Seng Han Thong, NTUC Assistant Secretary-General and
NTUC 50 Co-Chairman
SLF Chairman Mah Bow Tan (centre) at the NTUC 50 Anniversary Dinner where SLF was honoured with
the NTUC 50 Special Recognition award.
SLF Lent Strong Support To
NTUC 50 Anniversary Celebrations
A
s the Labour Movement’s steadfast
partner, SLF participated fully in NTUC 50
anniversary celebrations.
NTUC 50 anniversary celebrations comprise
mainly the NTUC 50 Anniversary Dinner and the
NTUC 50 May Day Rally. The 50th Anniversary
Dinner at the Marina Bay Sands on 13 May 2011
united 3,500 members of the Labour Movement’s
big family – unionists, political leaders and labour
leaders – to mark 50 years of NTUC in Singapore.
The event also made history by bestowing the NTUC
50 Special Recognition awards on 50 of the Labour
Movement’s movers and shakers, past and present,
including SLF, former Minister Mentor Lee Kuan Yew,
Emeritus Senior Minister Goh Chok Tong and past
NTUC Secretary-Generals C V Devan Nair, Ong
Teng Cheong and Lim Boon Heng.
The NTUC 50 May Day Rally at the Singapore
Indoor Stadium on 1 May 2011 was also celebrated
with great fanfare. It was the largest Rally the Labour
Movement had witnessed in recent memory, with
the attendance of 8,500 union leaders, past and
present members, key personnel from NTUC Social
Enterprises, NTUC staff, tripartite partners and
political leaders.
NTUC’s extraordinary journey from 1961 to
2011 was also captured in the commemorative
book “U & Me”, which reflects voices that have
created an impact on the Labour Movement and
how it overcame crisis after crisis and made right
decisions to bring about better lives for workers.
No less outstanding was the story of Singapore’s
workers, aptly told in the book “Singapore at Work”
which profiles workers from the various sectors of the
economy and reflects their heartfelt voices.
The generous and thoughtful funding from SLF
made these celebrations even more impactful.
“As a proactive partner of the Labour Movement,
SLF found great meaning in the NTUC 50
anniversary celebrations. SLF took the initiative to
propose the funding and we are happy that SLF
supported our celebratory events. With SLF’s strong
support, we were able to celebrate with the dinner
and do our commemorative publications better. SLF’s
gesture has been most appreciated,” said Mr Seng
Han Thong, NTUC Assistant Secretary-General and
NTUC 50 Co-Chairman.
The conferment of the NTUC 50 Special
Recognition award on SLF is a solid recognition of the
steadfast partnership and supportive relationship SLF
has built with the Labour Movement through the years.
Celebrating
With NTUC
The year 2011 marked the 50th anniversary of
NTUC. As a long-time partner of the Labour
Movement, SLF was privileged to contribute to
the NTUC 50 anniversary celebrations. This
included being a major sponsor of the NTUC
50 May Day Rally, NTUC 50 Anniversary
Dinner and the Labour Movement publication
of a commemorative book entitled “U &
Me”. The book documents the formation and
growth of NTUC over the past five decades,
from its precarious beginnings, to the strong
and vibrant and inclusive Labour Movement it
is today.
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ANNUAL REPORT 2011
The SLF Group
As at 31 March 2011
SINGAPORE
LABOUR
FOUNDATION
Employment and
Employability Institute Pte Ltd
Property Cluster
OMB Pte Ltd
SLF Properties Pte Ltd
SLF AMK Pte Ltd
SLF International Pte Ltd
SLF Strategic Advisers
Private Limited
Leisure Cluster
SLF Leisure Enterprises (Pte) Ltd
Orchid Country Club
Pasir Ris Resort Pte Ltd
Aranda Country Club
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ANNUAL REPORT 2011
SLF Subsidiaries Board of Directors
As at 31 March 2011
Property Cluster
Employment And Employability Institute Pte Ltd
Goh Chee Wee
Chairman
Ong Ye Kung
Boon Yoon Chiang
Anna Chan
Png Cheong Boon
Philip Su Poon Ghee
Mary Yeo
Ang Hin Kee
Adeline Sum
Chairman
Director
Director
Director
Director
Director and Chief Executive Officer
Director
Director
Cyrille Tan
Willy Shee
Cyrille Tan
Adeline Sum
Director
OMB Pte Ltd
David Wong
Chairman
Director
SLF AMK Pte Ltd
Employment and Employability
Institute Pte Ltd
Audit & Risk Committee
Chairman
Philip Su Poon Ghee
Members
Boon Yoon Chiang
Adeline Sum
Willy Shee
Chairman
Adeline Sum
Director
SLF Strategic Advisers Private Limited
Tan Hwee Bin
Chairman
Stephen Lee
Member
Director
Adeline Sum
Member
Goh Chee Wee
Director
Adeline Sum
Director
Director
Adeline Sum
Director
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ANNUAL REPORT 2011
Leisure Cluster
SLF Leisure Enterprises (Pte) Ltd
Lim Jit Poh
Chong Kee Hiong
Lee Suan Hiang
Ong Teck Ghee
Yeo Khee Leng
Adeline Sum
Chairman
Director
Director
Director
Director
Lim Kuang Beng
Director
President
Oscar Oliveiro
Captain
Chong Kee Hiong
Ong Teck Ghee
Oscar Oliveiro
Chairman
Director
Director
Orchid Country Club General Committee
Lim Jit Poh
Lim Jit Poh
Director
Director
Lee Suan Hiang
Director
Yeo Khee Leng
Director
Lim Kuang Beng
Director
Adeline Sum
Director
Aranda Country Club General Committee
Chong Kee Hiong
Treasurer
John De Payva
Member
Ong Teck Ghee
Vincent Fong
Lim Kuang Beng
David Poh
President
Treasurer
SLF Leisure Enterprises
(Pte) Ltd Audit Committee
Chairman
Lee Suan Hiang
Members
Lim Kuang Beng
Yeo Khee Leng
(Pte) Ltd Establishment
Committee
Chng Chee Beow
Member
Susan Gan
Member
Ong Teck Ghee
Member
Chairman
Lim Jit Poh
Members
Yeo Khee Leng
Adeline Sum
Orchid Country Club
Senior Management
General Manager
Peter Goh
Tan Ah Ee
Member
Yeo Khee Leng
Member
Adeline Sum
Member
Member
Member
Audit Committee
Establishment Committee
Aranda Country Club
Senior Management
Chairman
Lee Suan Hiang
Chairman
Lim Jit Poh
General Manager
Richard Foo
Directors
Lim Kuang Beng
Yeo Khee Leng
Members
Yeo Khee Leng
Adeline Sum
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ANNUAL REPORT 2011
Membership Listing
As at 31 March 2011
Unions
1. Attractions, Resorts & Entertainment Union
2. Air Transport Executive Staff Union
3. Amalgamated Union of Public Daily Rated Workers
4. Amalgamated Union of Public Employees
5. Amalgamated Union of Statutory Board Employees
6. Building Construction & Timber Industries Employees’ Union
7. Changi International Airport Services Employees’ Union
8. Chemical Industries Employees’ Union
9. DBS Staff Union
10.Education Services Union
11.ExxonMobil Singapore Employees’ Union
12.Food, Drinks & Allied Workers’ Union
13.Healthcare Services Employees’ Union
14.Housing & Development Board Staff Union
15.Inland Revenue Authority of Singapore Staff Union
16.Keppel Employees’ Union
17.Keppel FELS Employees’ Union
18.Metal Industries Workers’ Union
19.National Transports Workers’ Union
20.Natsteel Employees’ Union
21.Ngee Ann Polytechnic Academic Staff Union
22.Port Officers’ Union
23.Public Utilities Board Employees’ Union
24.Reuters Local Employees’ Union
25.Sembawang Shipyard Employees’ Union
26.Shipbuilding & Marine Engineering Employees’ Union
27.SIA Engineering Company Engineers and Executive Union
28.Singapore Airlines Staff Union
29.Singapore Airport Terminal Services Workers’ Union
30.The Singapore Bank Employees’ Union
31.Singapore Bank Officers’ Association
32.Singapore Chinese Teachers’ Union
33.Singapore Government Shorthand Writers Association
34.Singapore Industrial & Services Employees’ Union
35.Singapore Insurance Employees’ Union
36.Singapore Interpreters’ & Translators’ Union
37.Singapore Malay Teachers’ Union
38.The Singapore Manual & Mercantile Workers’ Union
39.Singapore Maritime Officers’ Union
40.Singapore National Union of Journalists
41.Singapore Organisation of Seamen
42.Singapore Port Workers Union
43.Singapore Press Holdings Employees’ Union
44.Singapore Refining Company Employees’ Union
45.Singapore Shell Employees’ Union
46.Singapore Stevedores’ Union
47.Singapore Tamil Teachers’ Union
48.Singapore Teachers’ Union
49.Singapore Technologies Electronic Employees’ Union
50.Singapore Union of Broadcasting Employees
51.Singapore Urban Redevelopment Authority Workers’ Union
52.SPRING Singapore Staff Union
53.Staff Union of NTUC-ARU
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 Electronic & Electrical Industries
60.United Workers of Petroleum Industry
Corporate Information
Singapore Labour
Foundation
1 Marina Boulevard
11-01 One Marina Boulevard
Singapore 018989
Tel:
6213 8585
Fax:
6327 3700
Email: [email protected]
Website: http://www.slf.gov.sg
Corporate Secretariat
RHT Corporate Advisory Pte Ltd
Six Battery Road #10-01
Singapore 049909
External Auditor
KPMG
16 Raffles Quay
#22-00
Hong Leong Building
Singapore 048581
Internal Auditor
Ethos Advisory Pte Ltd
64 Cecil Street
#06-01
IOB Building
Singapore 049711
Associations
1. National Taxi Association
Co-operatives
1. NTUC Choice Homes Co-operative Ltd
2. NTUC Eldercare Co-operative Ltd
3. NTUC Fairprice Co-operative Ltd
4. NTUC First Campus Co-operative Ltd
5. NTUC Foodfare Co-operative Ltd
6. NTUC Healthcare Co-operative Ltd
7. NTUC Income Insurance Co-operative Ltd
8. NTUC Media Co-operative Ltd
9. NTUC Thrift & Loan Co-operative Ltd
10.NTUC Investment Co-operative Ltd
Designed and produced by
NTUC Media Co-operative Limited
1 Marina Boulevard
11-01 Singapore 018989
Tel 6213 8585
Fax 6327 3700
ISSN: 1793-4192
Financial Statements
Year ended 31 March 2011
growing
wit
h
SINGAPORE
LABOUR
FOUNDATION
AND ITS SUBSIDIARIES
Annual Report
4
Statement by Directors
In our opinion:
(a) the financial statements set out on pages 7 to 54 are drawn up so as to give a true and
fair view of the state of affairs of the Singapore Labour Foundation (the Foundation)
and its subsidiaries (the Group) as at 31 March 2011 and of the results and changes
in funds and reserves of the Group and of the Foundation, and the cash flows of the Group
for the financial year then ended 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;
(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 Mah Bow Tan
Director
Mr Bobby Chin
Director
18 July 2011
5
FINANCIAL STATEMENTS 2011
Independent auditors’ report
Members of the Foundation
Singapore Labour Foundation
We have audited the accompanying financial statements of Singapore Labour Foundation (the
Foundation) and its subsidiaries (the Group), which comprise the statements of financial position
of the Group and the Foundation as at 31 March 2011, the income and expenditure statements,
statements of comprehensive income and statements of funds and reserves of the Group and the
Foundation and cash flow statement of the Group for the year then ended, and a summary of
significant accounting policies and other explanatory notes, as set out on pages 7 to 54.
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.
Auditors’ 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 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.
6
Independent auditors’ report
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
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 funds and reserves of the Foundation are properly drawn up in accordance
with the provisions of the Act and Statutory Board Financial Reporting Standards to give a
true and fair view of the state of affairs of the Group and of the Foundation as at 31 March
2011 and the results and changes in funds and reserves of the Group and of the Foundation
and cash flows of the Group for the year ended on that date.
Report on other legal and regulatory requirements
In our opinion, the accounting and other records required by the Act to be kept by the
Foundation have been properly kept in accordance with the provisions of the Act.
During the course of our audit, nothing came to our notice that caused us to believe that the
receipts, expenditure and investment of monies and the acquisition and disposal of assets
by the Foundation during the financial year have not been made in accordance with the
provisions of the Act.
KPMG LLP
Public Accountants and
Certified Public Accountants
Singapore
18 July 2011
7
Statements of financial position
As at 31 March 2011
Group
Foundation
2011
2010
(Restated)
2009
(Restated)
2011
2010
(Restated)
2009
(Restated)
$’000
$’000
$’000
$’000
$’000
$’000
4
5
6
35
7
8
18
131,348
9,440
285,233
414,907
840,928
145,904
10,299
289,668
414,027
206
11
860,115
154,983
11,011
294,922
378,073
912
437
840,338
118,236
172,633
124,722
411,303
826,894
128,760
174,977
123,722
410,423
206
838,088
139,568
177,918
129,722
372,468
913
820,589
7
9
668,946
302
528,877
336
232,649
19
330
668,946
-
522,285
-
229,232
500
19
-
10
10,537
13,373
21,708
4,278
3,861
12,381
11
117,424
797,209
161,540
704,126
339,789
594,495
90,834
764,058
106,971
633,117
310,792
552,924
Note
Non-current assets
Property, plant and
equipment
Intangible assets
Investment properties
Subsidiaries
Other investments
Deferred expenses
Deferred tax assets
Current assets
Other investments
Loan to a subsidiary
Assets held for sale
Inventories
Trade and other
receivables
Cash and cash
equivalents
Total assets
1,638,137
1,564,241 1,434,833 1,590,952
The accompanying notes form an integral part of these financial statements.
1,471,205 1,373,513
8
Statements of financial position
As at 31 March 2011
Group
Note
Foundation
2011
2010
(Restated)
2009
(Restated)
2011
2010
(Restated)
2009
(Restated)
$’000
$’000
$’000
$’000
$’000
$’000
1,033,895
-
960,157
-
849,371
2,675
886,559
-
819,518
-
717,303
2,675
87,129
27,121
84,855
27,121
80,839
27,121
75,463
-
73,864
-
71,306
-
Funds and reserves
Accumulated fund
SLF cultural fund
Assets replacement
reserve
Capital reserve
Investment revaluation
reserve
Total funds and
reserves
13
261,611
1,409,756
261,611
210,365
374,972
1,333,744 1,170,371 1,336,994
374,972
323,727
1,268,354 1,115,011
14
1,409,756
1,333,744 1,170,371 1,336,994
1,268,354 1,115,011
15
16
4
17
18
4,072
35
48,876
92,780
973
146,736
4,812
49
51,746
100,336
523
157,466
5,552
54,617
108,574
248
168,991
48,876
92,780
141,656
51,746
100,336
152,082
54,617
108,574
163,191
19
16
48,970
14
50,850
14
44,544
38,889
100,693
-
45,565
-
56,429
38,881
15
9,831
9,002
7,496
-
-
1
21
9,759
1,462
6,556
1,405
2,850
1,692
-
-
-
20
11,609
81,645
5,204
73,031
95,471
11,609
112,302
5,204
50,769
95,311
228,381
230,497
264,462
253,958
202,851
258,502
Non-current
liabilities
Advance fees and
deposits
Finance liabilities
Government grants
Deferred income
Deferred tax liabilities
Current liabilities
Trade and other
payables
Finance liabilities
Advance fees and
deposits
Grants received in
advance
Current tax payable
Contribution payable
to Consolidated Fund
Total liabilities
Total funds and
reserves and
liabilities
1,638,137
Net assets of Special
Relief Fund
32
10,136
1,564,241 1,434,833 1,590,952
10,003
8,954
1,471,205 1,373,513
10,136
10,003
8,954
9
Income and expenditure statements
Group
Note
Foundation
2011
2010
(Restated)
2011
2010
(Restated)
$’000
$’000
$’000
$’000
Income
Affiliation fees and
contributions
71,912
33,971
71,912
33,971
52,153
56,705
7,556
8,238
Licence fees income
935
933
-
-
Rental, carpark and
service income
50,206
48,934
14,198
14,051
Resort and social
recreation income
22
Management services fees
-
-
348
348
175,206
140,543
94,014
56,608
84
93
84
93
-
2,407
*
2,441
2,083
2,228
-
15
2,167
4,728
84
2,549
177,373
145,271
94,098
59,157
Other income
Entrance fees received
Gain on disposal of
property, plant and
equipment
Miscellaneous income
23
Total income
Expenditure
Resort and social
recreation related
expenses
24
(23,490)
(26,978)
-
-
Maintenance related
expenses
25
(14,002)
(13,205)
(15)
(42)
(20,795)
(18,385)
(2,829)
(2,007)
(5,789)
(5,148)
-
-
Staff costs
Utilities
Depreciation of
property, plant and
equipment
4
(15,350)
(15,786)
(10,698)
(11,319)
Amortisation of
intangible assets
5
(859)
(712)
-
-
Depreciation of
investment properties
6
(5,332)
(5,029)
(3,242)
(2,941)
Donations, grants and
sponsorship
26
(37,408)
(28,427)
(33,756)
(24,922)
(35,491)
(34,026)
(2,216)
(5,004)
(158,516)
(147,696)
(52,756)
(46,235)
Other expenses
Total expenditure
* Less than S$’000
10
Income and expenditure statements
Group
Note
Finance income
Foundation
2011
2010
(Restated)
2011
2010
(Restated)
$’000
$’000
$’000
$’000
38,701
93,794
38,487
91,585
(13)
(794)
-
(76)
38,688
93,000
38,487
91,509
Surplus from
operations
57,545
90,575
79,829
104,431
Operating grant received
30,890
25,509
-
-
2,870
2,870
2,870
2,870
91,305
118,954
82,699
107,301
Finance expense
Net finance income
Amortisation of
government grant
27
4
Surplus before
income tax and
Consolidated Fund
contribution
Income tax expense
29
(1,234)
(1,623)
-
-
Provision for contribution
to Consolidated Fund
20
(14,059)
(5,204)
(14,059)
(5,204)
Surplus for the year
28
76,012
112,127
68,640
102,097
Parent
76,012
112,127
68,640
102,097
76,012
112,127
68,640
102,097
Attributable to:
11
Statements of comprehensive income
Group
Foundation
2011
2010
(Restated)
2011
2010
(Restated)
$’000
$’000
$’000
$’000
76,012
112,127
68,640
102,097
Net change in fair value of
available-for-sale financial
assets
-
50,524
-
50,524
Fair value of available-for-sale
financial assets transferred to
income and expenditure
-
722
-
722
Other comprehensive
income for the year,
net of income tax
-
51,246
-
51,246
Total comprehensive
income for the year
76,012
163,373
68,640
153,343
Parent
76,012
163,373
68,640
153,343
Total comprehensive
income for the year
76,012
163,373
68,640
153,343
Other comprehensive
income
Total comprehensive income
attributable to:
12
Statements of funds and reserves
Accumulated
fund
SLF
cultural
fund
Assets
replacement
reserve
Capital
reserve
Investment
revaluation
reserve
Total
$’000
$’000
$’000
$’000
$’000
$’000
Group
At 1 April 2009,
previously stated
862,358
2,675
80,839
27,121
Effect of prior year
adjustments
(12,987)
-
-
-
At 1 April 2009,
restated
849,371
2,675
80,839
27,121
Total comprehensive
income for the year,
restated
112,127
-
-
-
51,246
163,373
Transfers
(1,341)
(2,675)
4,016
-
-
-
Total transactions
with owners
(1,341)
(2,675)
4,016
-
-
-
At 31 March 2010
960,157
-
84,855
27,121
261,611 1,333,744
At 1 April 2010
960,157
-
84,855
27,121
261,611 1,333,744
76,012
-
-
-
-
76,012
Transfers
(2,274)
-
2,274
-
-
-
Total transactions
with owners
(2,274)
-
2,274
-
-
-
At 31 March 2011
1,033,895
-
87,129
27,121
210,365 1,183,358
-
(12,987)
210,365 1,170,371
Transactions with
owners, recorded
directly in equity
Total comprehensive
income for the year
Transactions with
owners, recorded
directly in equity
261,611 1,409,756
13
Statements of funds and reserves
Accumulated
fund
SLF
cultural
fund
Assets
replacement
reserve
Investment
revaluation
reserve
Total
$’000
$’000
$’000
$’000
$’000
Foundation
At 1 April 2009, previously stated
730,290
2,675
71,307
323,726 1,127,998
Effect of prior year adjustments
(12,987)
-
-
At 1 April 2009, restated
717,303
2,675
71,307
Total comprehensive income for
the year, restated
102,097
-
-
51,246
153,343
Transfers
118
(2,675)
2,557
-
-
Total transactions with
owners
118
(2,675)
2,557
-
-
As at 31 March 2010
819,518
-
73,864
374,972 1,268,354
At 1 April 2010
819,518
-
73,864
374,972 1,268,354
68,640
-
-
-
68,640
Transfers
(1,599)
-
1,599
-
-
Total transactions
with owners
(1,599)
-
1,599
-
-
886,559
-
75,463
-
(12,987)
323,726 1,115,011
Transactions with owners,
recorded directly in equity
Total comprehensive income for
the year
Transactions with owners,
recorded directly in equity
As at 31 March 2011
374,972 1,336,994
14
Consolidated cash flow statement
Group
2011
2010
(Restated)
$’000
$’000
Operating activities
76,012
112,127
15,350
15,786
5,332
5,029
859
712
(7,556)
(8,238)
Amortisation of deferred expenses
206
707
Amortisation of government grant
(2,870)
(2,870)
50
(2,407)
(3,835)
(12,829)
Loss on disposals of held for trading investments
10
714
Impairment loss on trade receivables
70
53
Changes in fair value of investments
(13,371)
(61,264)
Dividend income
(15,616)
(17,752)
(5,879)
(1,949)
3
80
14,059
5,204
1,234
1,623
64,058
34,726
34
(5)
3,738
8,562
(2,620)
5,897
829
1,505
(31,046)
(24,940)
34,993
25,745
(715)
(1,208)
Contribution to Consolidated Fund
(7,655)
-
Grants received
34,249
28,646
Cash flows from operating activities
60,872
53,183
Adjustments for:
Depreciation of property, plant and equipment
Depreciation of investment properties
Amortisation of intangible assets
Amortisation of deferred income
Loss/(Gain) on disposal of property, plant and
equipment
Gain on sale of investments
Interest income
Interest expense
Provision for contribution to Consolidated Fund
Income tax expense
Changes in working capital:
Inventories
Trade and other receivables
Trade and other payables
Fees and deposits received in advance
Grants utilised
Cash generated from operations
Income tax paid
15
Consolidated cash flow statement
Group
Note
2011
2010
(Restated)
$’000
$’000
Investing activities
Dividends received
15,609
17,745
5,094
1,676
(3)
(160)
(1,387)
(6,716)
(898)
-
-
19
365
2,460
-
18,119
- held for trading investments
(123,754)
(244,679)
- held-to-maturity investments
-
19,001
(104,974)
(192,535)
Repayment of finance liabilities
(14)
(38,897)
Cash flows used in financing activities
(14)
(38,897)
Net decrease in cash and cash equivalents
(44,116)
(178,249)
Cash and cash equivalents at beginning of the year
161,540
339,789
117,424
161,540
Interest received
Interest paid
Purchase of:
- property, plant and equipment
- investment property
Proceeds on disposal of assets held for sale
Proceeds on disposal of property, plant and equipment
Net (acquisition)/sale and maturity of investments:
- available-for-sale investments
Cash flows used in investing activities
Financing activities
Cash and cash equivalents at end of
the year
11
During the year, the Group acquired property, plant and equipment with an aggregate cost
of Nil (2010: $6,787,000) of which Nil (2010: $71,000) was acquired by means of finance
leases.
16
Notes to the financial statements
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Board of Directors on 18 July 2011.
1
Domicile and activities
Singapore Labour Foundation (the Foundation) is established in the Republic of Singapore
and has its registered office at No. 1 Marina Boulevard, #11-01 One Marina Boulevard,
Singapore 018989.
The principal objective of the Foundation under the Singapore Labour Foundation Act, Cap.
302, is to promote the welfare of the members of the trade union movement in Singapore
and of the families of the members. The principal activities of the subsidiaries are set out in
note 35 to the financial statements.
The consolidated financial statements relate to the Foundation and its subsidiaries (together
referred to as the Group).
2
Basis of preparation
(a)
Statement of compliance
The financial statements have been prepared in accordance with the provisions of the
Singapore Labour Foundation Act, Chapter 302 (the Act) and Statutory Board Financial
Reporting Standards (SB-FRS). SB-FRS includes Statutory Board Financial Reporting
Standards, Interpretations of SB-FRS 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.
(b)
Basis of measurement
The financial statements have been prepared on the historical cost basis except for certain
financial assets and financial liabilities which are measured at fair value.
(c)
Functional and presentation currency
These financial statements are presented in Singapore dollars, which is the Foundation’s
functional currency. All financial information presented in Singapore dollars has been
rounded to the nearest thousand, unless otherwise stated.
(d)
Use of estimates and judgements
The preparation of financial statements in conformity with SB-FRS requires management
to make judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are revised and in
any future periods affected.
17
3
Significant accounting policies
The accounting policies used by the Group have been applied consistently to all periods presented
in these financial statements.
(a)
Consolidation
(i)
Business combinations
Business combinations are accounted for under the purchase method. The cost of an acquisition
is measured at the fair value of the assets given, equity instruments issued and liabilities incurred or
assumed at the date of exchange, plus costs directly attributable to the acquisition.
The excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and
contingent liabilities over the cost of acquisition is credited to income and expenditure in the period
of the acquisition.
(ii)
Subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are
included in the consolidated financial statements from the date that control commences until the date
that control ceases. The accounting policies of subsidiaries have been changed where necessary to
align them with the policies adopted by the Group.
(iii)
Joint venture
Joint venture arrangements which involve the use of the assets that are jointly controlled (whether
or not owned jointly), without the establishment of a separate entity, are referred to as jointlycontrolled assets. The Group recognises its interests in jointly-controlled assets using proportionate
consolidation.
The Group combines its share of each of the assets, liabilities, income and expenses of the joint
venture with similar items, line by line, in its financial statements. Consistent accounting policies are
applied for like transactions and events in similar circumstances.
The joint venture is proportionately consolidated until the date on which the Group ceases to have
joint control over the jointly-controlled assets.
Where the Group transacts with its jointly controlled entities, unrealised profits and losses are
eliminated to the extent of the Group’s interest in the joint venture.
(iv)
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income or expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. Unrealised
gains arising from transactions with equity accounted investees are eliminated against the investment
to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way
as unrealised gains, but only to the extent that there is no evidence of impairment.
(v)
Accounting for subsidiaries and joint ventures by the Foundation
Investments in subsidiaries and joint ventures are stated in the Foundation’s statement of financial
position at cost less accumulated impairment losses.
18
3
Significant accounting policies (cont’d)
(b)
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the
Group entities at the exchange rate at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are retranslated to the functional currency
at the exchange rate at the reporting date. The foreign currency gain or loss on monetary items
is the difference between amortised cost in the functional currency at the beginning of the period,
adjusted for effective interest and payments during the period, and the amortised cost in foreign
currency translated at the exchange rate at the end of the reporting period. Non-monetary assets
and liabilities denominated in foreign currencies that are measured at fair value are retranslated
to the functional currency at the exchange rate at the date on which the fair value was determined.
Translation differences are included in income and expenditure, except for differences arising on
retranslation of available-for-sale equity instruments (see note 3(f)).
(c)
Property, plant and equipment
(i)
Recognition and measurement
Property, plant and equipment are stated at cost less accumulated depreciation and impairment
losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of selfconstructed assets includes the cost of materials and direct labour, any other costs directly attributable
to bringing the asset to a working condition for its intended use, and the cost of dismantling and
removing the items and restoring the site on which they are located. Purchased software that is
integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment, and is
recognised net within other income/other expenses in profit or loss.
(ii)
Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised in the
carrying amount of the item if it is probable that the future economic benefits embodied within the
component will flow to the Group, and its cost can be measured reliably. The costs of the day-today servicing of property, plant and equipment are recognised in profit or loss as incurred.
(iii)
Depreciation
Assets under construction are not depreciated. Depreciation on other property, plant and equipment
is recognised in income and expenditure on a straight-line basis over the estimated useful lives of
each part of an item of property, plant and equipment. Leased assets are depreciated over the
shorter of the lease term and their useful lives unless it is reasonably certain that the Group will
obtain ownership by the end of the lease term.
19
3
The estimated useful lives for the current and comparative periods are as follows:
Leasehold land
Leasehold buildings, premises and improvements
Plant, machinery, operating equipment and motor vehicles
Office premises and computer
remaining life of the lease
5 to 50 years
2 to 10 years
3 to 5 years
Depreciation methods, useful lives and residual values are reviewed at each financial year-end
and adjusted if appropriate.
(d)
Intangible assets
Intangible assets, which have finite useful lives, are measured at cost less accumulated
amortisation and impairment losses. Intangible assets are amortised in income and expenditure
on a straight-line basis over their estimated useful lives ranging from 5 to 30 years, from the
date on which they are available for use.
Amortisation methods, useful lives and residual values are reviewed at each financial year-end
(e)
Investment property is property held either to earn rental income or for capital appreciation or
for both. It does not include properties for sale in the ordinary course of business, used in the
production or supply of goods or services, or for administrative purposes.
When an investment property is disposed of, the resulting gain or loss recognised in income
and expenditure is the difference between net disposal proceeds and the carrying amount of
the property.
Investment properties are stated at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition or construction of the
asset. Rental income from investment properties is accounted for in the manner described in
note 3(m).
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 land
Leasehold buildings and premises
remaining life of the lease
50 years
Depreciation methods, useful lives and residual values are reviewed at each financial year-end
20
3
(f)
Financial instruments
(i)
Non-derivative financial assets
The Group initially recognises loans and receivables and deposits on the date that they are
originated. All other financial assets (including assets designated at fair value through profit
or loss) are recognised initially on the trade date at which the Group becomes a party to the
contractual provisions of the instrument.
The Group has the following non-derivative financial assets: available-for-sale financial assets,
financial assets at fair value through profit or loss, trade and other receivables and cash and cash
equivalents.
The Group derecognises a financial asset when the contractual rights to the cash flows from the
asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in
a transaction in which substantially all the risks and rewards of ownership of the financial asset are
transferred. Any interest in transferred financial assets that is created or retained by the Group is
recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial
position when, and only when, the Group has a legal right to offset the amounts and intends either
to settle on a net basis or to realise the asset and settle the liability simultaneously.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as
available-for-sale and that are not classified in any of the previous categories. The Group’s
investments in certain equity securities are classified as available-for-sale financial assets.
Subsequent to initial recognition, they are measured at fair value and changes therein, other than
for impairment losses, and foreign exchange gains and losses on available-for-sale monetary items
(see note 3(b)), are recognised directly in the relevant funds. When an investment is derecognised,
the cumulative gain or loss in the relevant funds is transferred to income and expenditure.
Financial assets at fair value through profit or loss
A financial asset is classified at fair value through profit or loss if it is classified as held for
trading or is designated as such upon initial recognition. Financial assets are designated at fair
value through profit or loss if the Group manages such investments and makes purchase and sale
decisions based on their fair value in accordance with the Group’s documented risk management
or investment strategy. Upon initial recognition, attributable transaction costs are recognised
in income and expenditure as incurred. Financial assets at fair value through profit or loss are
measured at fair value, and changes therein are recognised in income and expenditure.
21
3
(f)
Financial instruments (cont’d)
(i)
Non-derivative financial assets (cont’d)
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not
quoted in an active market. Such assets are recognised initially at fair value plus any directly
attributable transaction costs. Subsequent to initial recognition, loans and receivables are
measured at amortised cost using the effective interest method, less any impairment losses.
Loans and receivables comprise trade and other receivables.
Cash and cash equivalents comprise cash balances and bank deposits.
(ii)
Non-derivative financial liabilities
The Group has the following non-derivative financial liabilities: finance liabilities and trade and
other payables.
The Group initially recognises debt securities issued and subordinated liabilities on the date that
they are originated. All other financial liabilities (including liabilities designated at fair value
through profit or loss) are recognised initially on the trade date at which the Group becomes a
party to the contractual provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged or
cancelled or expire.
Financial assets and liabilities are offset and the net amount presented in the statement of
financial position when, and only when, the Group has a legal right to offset the amounts and
intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Such financial liabilities are recognised initially at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, these financial liabilities are measured at
amortised cost using the effective interest method.
(iii)
Derivative financial instruments and hedging activities
The Group holds derivative financial instruments (primarily foreign currency forward contracts)
to hedge its foreign currency risk exposures. Embedded derivatives are separated from the
host contract and accounted for separately if the economic characteristics and risks of the
host contract and the embedded derivative are not closely related, a separate instrument with
the same terms as the embedded derivative would meet the definition of a derivative, and the
combined instrument is not measured at fair value through profit or loss.
Derivatives are recognised initially at fair value; attributable transaction costs are recognised in
income and expenditure as incurred. Subsequent to initial recognition, derivatives are measured
at fair value, and changes therein are accounted in income and expenditure.
22
3
(g)
Leased assets
Leased assets in which the Group assumes substantially all the risks and rewards of ownership
are classified as finance leases. Upon initial recognition, property, plant and equipment acquired
through finance leases are capitalised at the lower of its fair value and the present value of
the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in
accordance with the accounting policy applicable to that asset.
Assets subject to operating leases are included in investment properties and are stated at cost less
accumulated depreciation and impairment losses. Rental income (net of any incentives given to
lessees) is recognised on a straight-line basis over the lease term.
(h)
Impairment
(i)
Financial assets (including receivables)
A financial asset not carried at fair value through profit or loss is assessed at each reporting
date to determine whether there is any objective evidence that it is impaired. A financial asset
is considered to be impaired if objective evidence indicates that a loss event has occurred after
the initial recognition of the asset, and that the loss event had a negative effect on the estimated
future cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets (including equity securities) are impaired can include
default or delinquency by a debtor, restructuring of an amount due to the Group on terms that
the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy,
the disappearance of an active market for a security. In addition, for an investment in an equity
security, a significant or prolonged decline in its fair value below its cost is objective evidence of
impairment.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the
difference between its carrying amount, and the present value of the estimated future cash flows
discounted at the original effective interest rate.
The Group considers evidence of impairment for receivables and held-to-maturity investment
securities at a specific asset level. All individually significant receivables and held-to-maturity
investment securities are assessed for specific impairment.
Impairment losses on available-for-sale investment securities are recognised by transferring the
cumulative loss that has been recognised in other comprehensive income, and presented in the
investment revaluation reserve, to income and expenditure. The cumulative loss that is removed
from other comprehensive income and recognised in income and expenditure is the difference
between the acquisition cost, net of any principal repayment and amortisation, and the current
fair value, less any impairment loss previously recognised in income and expenditure.
23
3
(h)
Impairment (cont’d)
(ii)
Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than investment property, inventories
and deferred tax assets, are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the asset’s recoverable amount is
estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its
fair value less costs to sell. In assessing value in use, the estimated future cash flows 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 or cash-generating unit. A cash-generating
unit is the smallest identifiable asset group that generates cash flows that largely are independent
from other assets and groups.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit
exceeds its estimated recoverable amount. Impairment losses are recognised in income and
expenditure. Impairment losses recognised in respect of cash-generating unit are allocated first to
reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying
amounts of the other assets in the unit (group of units) on a pro rata basis.
In respect of other assets, impairment losses recognised in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer exists for all assets.
An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.
(i)
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. Net realisable value represents the estimated
selling price less anticipated cost of disposal and after making allowance for damaged, obsolete
and slow-moving items.
(j)
Employee benefits
(i)
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in
income and expenditure in the periods during which services are rendered by employees.
(ii)
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 profitsharing 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.
24
3
(k)
Advance licence fees
Licence fees received in advance in relation to the use of a subsidiary’s leasehold building is
deferred and amortised to income and expenditure over the period in which the rights to use
the assets of the leasehold building are amortised.
(l)
Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
will be required to settle the obligation. Provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability.
(m)
Revenue recognition
Affiliation fees from unions are recognised on a receipt basis.
Contributions from co-operatives are recognised on an accrual basis.
Revenue from rendering of services which are of a short duration is recognised upon completion
of such services.
Licence fees, income from members’ subscriptions, golfing fees and fees from the provision of
other social and recreational facilities by country clubs are taken up in the income or expenditure
on an accrual basis. Gross takings from jackpot machines are recognised on a receipt basis.
Rental income receivable under operating leases is recognised in income and expenditure
statement on a straight-line basis over the period of the leases. Lease incentives granted are
recognised as an integral part of the total rental income to be received. Contingent rentals are
recognised as income in the accounting periods in which they are earned.
Entrance fees (net of related expenses) for memberships to the country clubs are amortised to
income and expenditure over the remaining period of the lease of the respective land on which
the country clubs are situated.
Transfer fees for membership to the country clubs are recognised on a receipt basis.
Deferred revenue from unutilised portion of driving range prepaid cards is recognised 6 months
later from the month of sales.
Revenue from food and beverage sales is recognised upon their delivery and acceptance by
the customer.
Revenue arising from hotel operations is recognised when the relevant services are rendered.
25
3
(n)
Finance income and expenses
Finance income comprises interest income, dividend income, gains on disposal of available-forsale financial assets and gain in fair value of held for trading investments that are recognised in
income and expenditure. Interest income is recognised as it accrues, using the effective interest
method. Dividend income is recognised on the date that the Group’s right to receive payment
is established, which in the case of quoted securities is the ex-dividend date.
Finance expenses comprise interest expense, loss in fair value of held for trading investments
and losses on disposal of available-for-sale financial assets that are recognised in income and
expenditure. All borrowing costs are recognised in income and expenditure using the effective
interest method, except to the extent that they are capitalised as being directly attributable to the
acquisition, construction or production of an asset which necessarily takes a substantial period
of time to be prepared for its intended use or sale.
(o)
Grants
Grants received for the purchase of depreciable assets are recognised separately on the
statement of financial position and are amortised to income and expenditure over the periods
necessary to match the depreciation charge on the depreciable assets purchased.
Grants received to meet the operating expenses of a subsidiary are recognised and credited
in income and expenditure on a systematic basis over the periods necessary to match the
related operating expenses. The grants are recognised on an accrual basis and provided the
conditions stipulated under which the grants are awarded have been met.
Government grants are reflected as a separate line item in income and expenditure after
“Surplus/(deficit) from operations” to indicate the extent to which the Group’s and Foundation’s
operations are financed by government grants.
(p)
Contribution to Consolidated Fund
Contribution to Consolidated Fund is provided on an accrual basis. The contribution is based
on the net surplus of the Foundation for the financial year at the prevailing rate for the year,
offset by any net deficits carried forward.
(q)
Income tax expense
Income tax expense comprises current and deferred tax. Current tax and deferred tax are
recognised in income and expenditure except to the extent that it relates to items recognised
directly in the respective funds and reserves, in which case it is recognised in the respective
funds and reserves.
Current tax is the expected tax payable on the taxable income or loss for the year, using tax
rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable
in respect of previous years.
26
3
(q)
Income tax expense (cont’d)
Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither accounting nor taxable income and
expenditure. In addition, deferred tax is not recognised for taxable temporary differences arising
on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected
to be applied to the temporary differences when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets and they relate to income taxes levied by the same tax authority on the
same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that future taxable profits will be available against
which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
(r)
Key management personnel
Key management personnel of the Group are those persons having the authority and responsibility
for planning, directing and controlling the activities of the entity. The directors, senior management
and general committee members are considered as key management personnel of the Group.
(s)
New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual
periods beginning after 1 April 2010, and have not been applied in preparing these financial
statements. None of these are expected to have a significant effect on the financial statements of
the Group.
27
4
Leasehold
land
Group
Leasehold
Plant,
buildings,
machinery,
premises and
operating
improvements equipment
and
motor
vehicles
$’000
$’000
Office
premises
and
computer
Constructionin-progress
Total
$’000
$’000
$’000
$’000
Cost
At 1 April 2009
52,296
194,201
44,646
32,475
6,720
330,338
Additions
-
2,712
413
2,239
1,423
6,787
Adjustment**
-
(27)
-
-
-
(27)
Transfers
-
7,389
40
161
(7,590)
-
Disposals
-
(135)
(186)
(484)
-
(805)
Written off
-
-
-
(6)
-
(6)
52,296
204,140
44,913
34,385
553
336,287
Additions
-
385
289
609
104
1,387
Adjustment**
-
(22)
(98)
-
(58)
(178)
Transfers
-
-
-
481
(481)
-
Disposals
-
(505)
(144)
(836)
-
(1,485)
52,296
203,998
44,960
34,639
118
336,011
12,819
94,872
42,155
25,509
-
175,355
1,735
10,625
886
2,540
-
15,786
Transfers
-
2
(2)
(*)
-
-
Disposals
-
(133)
(185)
(434)
-
(752)
Written off
-
-
-
(6)
-
(6)
14,554
105,366
42,854
27,609
-
190,383
1,734
10,085
851
2,680
-
15,350
-
(314)
(138)
(618)
-
(1,070)
16,288
115,137
43,567
29,671
-
204,663
At 1 April 2009
39,477
99,329
2,491
6,966
6,720
154,983
At 31 March 2010
37,742
98,774
2,059
6,776
553
145,904
At 31 March 2011
36,008
88,861
1,393
4,968
118
131,348
At 31 March 2010
At 31 March 2011
Accumulated
depreciation
At 1 April 2009
Depreciation for the year
At 31 March 2010
Disposals
At 31 March 2011
Carrying amount
* Less than S$’000.
** The adjustment relates to price adjustment based on final progress billing.
28
4
Property, plant and equipment (cont’d)
Leasehold
land
Foundation
$’000
Leasehold
Plant and
buildings,
machinery
premises and
improvements
$’000
$’000
Office
premises
and
computer
Constructionin-progress
Total
$’000
$’000
$’000
Cost
At 1 April 2009
52,296
178,577
39,611
18,100
4,695
293,279
Additions
-
296
71
158
13
538
Adjustment**
-
(27)
-
-
-
(27)
Transfers
-
4,695
-
-
(4,695)
-
Written off
-
-
-
(6)
-
(6)
52,296
183,541
39,682
18,252
13
293,784
Additions
-
-
-
69
105
174
Disposals
-
-
-
(1)
-
(1)
52,296
183,541
39,682
18,320
118
293,957
12,819
85,460
37,785
17,647
-
153,711
1,735
8,824
540
220
-
11,319
-
-
-
(6)
-
(6)
14,554
94,284
38,325
17,861
-
165,024
1,735
8,247
489
227
-
10,698
-
-
-
(1)
-
(1)
16,289
102,531
38,814
18,087
-
175,721
At 1 April 2009
39,477
93,117
1,826
453
4,695
139,568
At 31 March 2010
37,742
89,257
1,357
391
13
128,760
At 31 March 2011
36,007
81,010
868
233
118
118,236
At 31 March 2010
At 31 March 2011
Accumulated
depreciation
At 1 April 2009
Written off
At 31 March 2010
Disposals
At 31 March 2011
Carrying amount
** The adjustment relates to price adjustment based on final progress billings.
29
4
Property, plant and equipment (cont’d)
(i)
Included in leasehold land is a land differential premium of $8,489,000 (2010: $8,489,000)
which is fully covered by a government grant. The land differential premium is payable over
a ten-year instalment plan. The land is at Yishun on which Orchid Country Club is situated.
The grant is conditional upon Orchid Country Club being accessible to the broad mass of union
members and workers. The following depicts the cost of the land:
Group and Foundation
2011
2010
$’000
$’000
Land differential premium
7,230
7,230
Interest capitalised
1,259
1,259
8,489
8,489
(8,489)
(8,489)
-
-
Less:
Government grant
Net carrying value of the land
(ii)
In conjunction with the development of One Marina Boulevard, the Foundation was
entitled to receive government grants amounting to $74,879,000 (2010: $74,879,000) for
qualifying development costs from the Ministry of Manpower. These grants are recognised
separately on the statement of financial position and are amortised to income and expenditure
to match against the depreciation charge of the related property, plant and equipment.
Movements in the government grants are as follows:
At beginning of year
Amortisation
At end of year
2011
2010
$’000
$’000
74,879
74,879
(26,003)
(23,133)
48,876
51,746
23,133
20,263
2,870
2,870
26,003
23,133
Movements in amortisation of government grants
are as follows:
Balance at beginning of year
Amortisation for the year
Balance at end of year
30
5
Intangible assets
Assets use rights
$’000
Group
Cost
At 1 April 2009/31 March 2010/31 March 2011
57,520
Accumulated amortisation
At 1 April 2009
46,509
Amortisation charge for the year
712
At 31 March 2010
47,221
Amortisation charge for the year
859
At 31 March 2011
48,080
Carrying amount
At 1 April 2009
11,011
At 31 March 2010
10,299
At 31 March 2011
9,440
The Singapore Land Authority has granted the Group a temporary occupation licence (TOL) for
the site currently occupied by Costa Sands Resort (Downtown East) (CSRDE) for the development
and operation of a holiday resort for workers only in accordance with plans approved or to be
approved by the competent authority under the Planning Act (Chapter 279).
Initial development costs relating to CSRDE had been capitalised and amortised using the
straight-line method over their estimated useful lives of 5 to 30 years. The Group has given
NTUC Club (managing agent of CSRDE) rights to use the assets at CSRDE for a licence fee.
6
Leasehold
land
Leasehold
buildings
and
premises
Total
$’000
$’000
$’000
168,115
158,065
326,180
(225)
(225)
Group
Cost
At 1 April 2009
Adjustment*
-
At 31 March 2010
168,115
157,840
325,955
At 1 April 2010
168,115
157,840
325,955
Additions
At 31 March 2011
898
169,013
157,840
* The adjustment relates to price adjustment based on final progress billings.
898
326,853
31
6
Investment properties (cont’d)
Leasehold
land
Leasehold
buildings
and
premises
Total
$’000
$’000
$’000
Group
Accumulated depreciation
At 1 April 2009
8,700
22,559
31,259
Depreciation charge for the year
1,720
3,309
5,029
At 31 March 2010
10,420
25,868
36,288
At 1 April 2010
10,420
25,868
36,288
2,023
3,309
5,332
12,443
29,177
41,620
At 1 April 2009
159,415
135,506
294,921
At 31 March 2010
157,695
131,972
289,667
At 31 March 2011
156,570
128,663
285,233
103,948
89,567
193,515
At 31 March 2011
Carrying amount
Foundation
Cost
At 1 April 2009 and 31 March 2010
Additions
At 31 March 2011
898
-
898
104,846
89,567
194,413
At 1 April 2009
5,715
9,882
15,597
1,072
1,869
2,941
At 31 March 2010
6,787
11,751
18,538
At 1 April 2010
6,787
11,751
18,538
1,373
1,869
3,242
At 31 March 2011
8,160
13,620
21,780
At 1 April 2009
98,233
79,685
177,918
At 31 March 2010
97,161
77,816
174,977
At 31 March 2011
96,686
75,947
172,633
Accumulated depreciation
Carrying amount
32
6
Details of investment properties are as follows:
Description
Names of
independent
professional valuers
Latest date
and basis of
valuation
Market value
2011
2010
$’000
$’000
Held by
Foundation
Leasehold office
units at One
Marina Boulevard
Chesterton Suntec
International Pte Ltd*
March 2011/
open market
value for
existing use
578,000
444,000
Leasehold office
units at SLF
Building
Colliers International
Consultancy &
Valuation (S) Pte Ltd
March 2011/
open market
value for
existing use
93,600
83,282
Leasehold retail
units at AMK Hub
Knight Frank Pte Ltd
March 2011/
open market
value for
existing use
199,500
190,750
Held by
subsidiaries
* Valuations in 2010 were obtained from Colliers International Consultancy & Valuation (S) Pte Ltd.
Rental income earned by the Group from its investment properties, all of which are leased
out under operating leases, amounted to $43,259,000 (2010: $41,855,000). Direct operating
expenses arising from the investment properties during the year amounted to $17,888,000
(2010: $16,957,000).
In 2005, a subsidiary of the Foundation, with two other entities, entered into a joint development
agreement to acquire a leasehold interest of 99 years less one day in a site in Ang Mo Kio,
and to jointly develop an integrated commercial development project on the site and hold the
same as tenants-in-common in their respective agreed proportion. Under the joint development
agreement, the subsidiary holds as tenants-in-common thirty-five percent in the leasehold interest.
The joint development agreement is set out below:
Effective interest held by
the Group
Name of joint
development project
AMK Hub
Principal activities
To develop and manage a
retail mall
2011
2010
%
%
35
35
33
6
In respect of the Group’s interest in the joint development agreement, the Group recognised the
following in its consolidated financial statements:
2011
2010
$’000
$’000
Assets and liabilities
Deposits included in other receivables and deposits
4,807
5,144
600
753
97,679
99,154
4,705
5,978
16,601
15,852
583
546
Interest income
13
11
Other income
202
222
7,205
6,678
Investment property
Accruals of property tax (included in other payables
and accruals)
Results
Rental and carpark income
Ancillary income
Other expenses
Details of the property are as follows:
Description of property
Tenure of land
Site area
7
:
:
:
AMK Hub
99 years
19,300 sq m
Other investments
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Non-current investments
At cost less impairment:
Available-for-sale equity
securities
- unquoted equity shares
- unquoted shares in
NTUC Co-operatives
4,255
4,255
651
651
16,570
15,690
16,570
15,690
20,825
19,945
17,221
16,341
394,082
394,082
394,082
394,082
394,082
394,082
394,082
394,082
414,907
414,027
411,303
410,423
At fair value:
Available-for-sale equity
securities
- quoted equity investments
34
7
Other investments (cont’d)
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Current investments
At fair value:
Securities held for trading
279,752
256,629
279,752
256,629
- quoted debt securities
389,194
272,248
389,194
265,656
668,946
528,877
668,946
522,285
Equity and debt securities are principally denominated in Singapore dollars.
Held for trading debt securities bear interest rates of Nil% to 6.04% (2010: Nil% to 4.91%) per
annum.
The carrying amount of unquoted available-for-sale equity shares includes an impairment loss
of $110,000 (2010: $110,000).
8
Deferred expenses
This relates to specific expenses that are deferred to match future rental income. These deferred
expenses are amortised to income and expenditure in the same period as the relevant rental
income.
Cost
Amortisation of deferred expenses
2011
2010
$’000
$’000
4,112
4,112
(4,112)
(3,906)
-
206
Movements in amortisation of deferred expenses are as follows:
Amortisation for the year (included in other expenses)
2011
2010
$’000
$’000
3,906
3,199
206
707
4,112
3,906
35
9
Inventories
Group
2011
2010
$’000
$’000
Maintenance parts
242
232
60
104
302
336
Consumables
10 Trade and other receivables
Group
Note
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Trade receivables
2,081
2,416
-
-
Impairment losses
(98)
(99)
-
-
Net receivables
1,983
2,317
-
-
Other receivables
5,476
7,999
268
13
Deposits
952
1,119
2
2
Interest receivable
on fixed deposits
and investment
securities
946
461
943
408
-
416
-
416
-
-
3,055
3,022
Loans and
receivables
9,357
12,312
4,268
3,861
Prepayments
1,180
1,061
10
-
10,537
13,373
4,278
3,861
Fair value of
financial
derivative
contracts
Non-trade
amounts due from
subsidiaries
12
The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable on
demand.
36
10 Trade and other receivables (cont’d)
Impairment losses
The ageing of the trade receivables at the reporting date is:
Group
Not past due
Gross
Impairment
losses
Gross
Impairment
losses
2011
2011
2010
2010
$’000
$’000
$’000
$’000
1,388
(7)
1,467
(4)
Past due 0 – 30 days
429
(14)
462
(7)
161
(17)
350
(7)
61
(18)
75
(19)
More than one year
42
(42)
62
(62)
2,081
(98)
2,416
(99)
The change in impairment loss in respect of trade receivables during the year is as follows:
Group
2011
2010
$’000
$’000
99
104
-
(1)
(71)
(57)
Impairment loss recognised
70
53
98
99
Write back of impairment
Bad debts written off
Trade receivables arise mainly from tenants of the investment properties, and tenants and
members of Orchid Country Club and Aranda Country Club (the Clubs). Based on historical
default rates, the management believes that no impairment allowance is necessary in respect of
trade receivables, except for amount due from members of the Clubs. Full impairment will be
made on the amount due from members who have defaulted on their payments.
37
11 Cash and cash equivalents
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Cash at bank and in hand
30,247
50,207
18,685
19,357
Fixed deposits
87,177
111,333
72,149
87,614
117,424
161,540
90,834
106,971
Cash and cash equivalents
in the cash flow statement
The weighted average effective interest rates per annum relating to cash and cash equivalents,
at the reporting date for the Group and the Foundation are 0.19% and 0.19% (2010: 0.29%
and 0.31%) respectively. Interest rates reprice at intervals of one to twelve months.
12 Fair value of financial derivatives
Fair value of financial derivative contracts
Notional
principal
Positive
fair value
(Note 10)
$’000
$’000
2011
Forward foreign exchange contracts
-
-
2010
Forward foreign exchange contracts
62,498
416
13 Capital reserve
This relates to non-distribution reserve for a previous associate. The previous associate is now
classified as an available-for-sale investment, following partial disposals in prior years.
14 Fund and reserves
Capital management
The Foundation invests its funds and reserves in properties and financial investments on a long
term basis. Returns from investments are to enable the Foundation to generate more funds to
serve its objectives as set out in the Singapore Labour Foundation Act (Cap. 302).
There were no changes in the Group’s approach to managing its funds and reserves.
The Foundation and its subsidiaries are not subject to externally imposed capital requirements.
38
15 Advance fees and deposits
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Current
Rental, carpark income and
advance licence fees
1,674
1,571
-
-
Deposits received
8,157
7,431
-
-
9,831
9,002
-
-
In 2004, a subsidiary of the Group received licence fees in advance from NTUC Club for the
use of the subsidiary’s leasehold building for 15 years. As at 31 March 2011, the advance
licence fees amounted to a total of $4,812,000 (2010: $5,552,000), out of which $4,072,000
(2010: $4,812,000) was classified as non-current liability and $740,000 (2010: $740,000)
was classified as current liability in the financial statements.
16 Finance liabilities
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Non-current liabilities
Finance lease liability
35
49
-
-
14
14
-
-
Total borrowings
49
63
-
-
Current liabilities
At 31 March, the Group’s obligations under finance lease liability are as follows:
Principal
Interest
Payments
Principal
Interest
Payments
2011
2011
2011
2010
2010
2010
$’000
$’000
$’000
$’000
$’000
$’000
Payable within
1 year
14
2
16
14
3
17
Payable after
1 year but
within 5 years
35
2
37
49
5
54
49
4
53
63
8
71
The average effective borrowing rate is 3.1% (2010: 3.1%) per annum for the Group.
39
16 Finance liabilities (cont’d)
The following are the expected contractual undiscounted cash outflows of financial liabilities,
including interest payments and excluding the impact of netting agreements:
Cash flows
Group
Carrying
amount
Contractual
cash flows
Within
1 year
$’000
$’000
$’000
2011
49
(53)
(53)
48,970
(48,970)
(48,970)
49,019
(49,023)
(49,023)
63
(71)
(71)
50,850
(50,850)
(50,850)
50,913
(50,921)
(50,921)
28,430
(28,430)
(28,430)
Amounts due to subsidiaries
72,263
(72,263)
(72,263)
100,693
(100,693)
(100,693)
30,153
(30,153)
(30,153)
15,412
(15,412)
(15,412)
45,565
(45,565)
(45,565)
2010
Foundation
2011
2010
40
17 Deferred income
Note
2011
2010
$’000
$’000
Orchid Country Club
188,031
188,031
Aranda Country Club
21,422
21,422
209,453
209,453
(1,398)
(1,398)
(115,275)
(107,719)
92,780
100,336
107,719
99,481
7,556
8,238
115,275
107,719
Launching expenses
Amortisation of deferred income
Movements in amortisation of deferred
income are as follows:
Amortisation for the year
22
18 Deferred tax
Movements in deferred tax assets and liabilities of the Group (prior to offsetting of balances)
during the year are as follows:
At
1 April
2009
Recognised
in income
statement
(note 29)
At
31 March
2010
Recognised
in income
statement
(note 29)
At
31 March
2011
$’000
$’000
$’000
$’000
$’000
Group
Deferred tax liabilities
Property, plant and
equipment
248
275
523
450
973
(437)
426
(11)
11
-
Deferred tax assets
Property, plant and
equipment
41
19 Trade and other payables
Group
Note
2011
2010
2009
(Restated) (Restated)
$’000
Trade payables
Foundation
$’000
$’000
2011
2010
2009
(Restated) (Restated)
$’000
$’000
$’000
4,023
4,451
5,165
-
-
-
- donations, grants
and sponsorships
accruals
25,001
18,891
15,735
24,642
18,537
15,399
- other accruals
12,289
10,000
8,008
206
151
395
Other payables
4,890
14,648
7,093
3,142
11,067
5,010
56
106
5,986
56
106
5,986
516
457
353
384
292
251
46,775
48,553
42,340
28,430
30,153
27,041
-
-
-
72,263
15,412
29,388
1,647
1,696
1,700
-
-
-
548
601
504
-
-
-
48,970
50,850
44,544 100,693
45,565
56,429
Accruals:
Amount due to
Special Relief Fund
GST payable
Amounts due to
subsidiaries
Deposits
Deferred revenue
32
As at 31 March 2011, amounts due to subsidiaries and to Special Relief Fund of $Nil and
$Nil (2010: $947,000 and $Nil) respectively relates to funds of the subsidiaries and Special
Relief Fund that the Foundation placed in fixed deposits on their behalf. The amounts due to
the subsidiaries and Special Relief Fund bears weighted average interest rate of Nil% (2010:
0.99%) per annum. The remaining balance in amounts due to subsidiaries and Special Relief
Fund are non-trade in nature, unsecured, interest-free and repayable on demand.
Other taxes and levies payable mainly relate to private lottery taxes arising from the jackpot
machine operations.
20 Contribution payable to Consolidated Fund
This represents the Foundation’s contribution to be made to the Consolidated Fund in
accordance with the Statutory Corporations (Contributions to Consolidated Fund) Act, Cap.
319A. Contributions to the Consolidated Fund, in accordance with the applicable financial
circulars issued by the Government, are derived by applying a rate of 17% on the net surplus
for the current year, offset by any net deficits carried forward.
42
21 Grants received in advance
A subsidiary of the Group received the following grants for qualifying operational costs.
This grant is recognised in income and expenditure to match against the operational expenses:
Inclusive
growth
programme
grant
Institutional
grant
SLF
contingency
sum
Total
$’000
$’000
$’000
$’000
As at 1 April 2009
-
2,849
-
2,849
Grants received in 2010
-
30,748
-
30,748
Grants receivable
-
-
569
569
Grants utilised
-
(25,501)
(8)
(25,509)
Grants returned
-
(2,101)
-
(2,101)
As at 31 March 2010
-
5,995
561
6,556
Grants received in 2011
10,000
24,100
155
34,255
Grants utilised
(3,539)
(27,351)
(156)
(31,046)
-
(6)
-
(6)
6,461
2,738
560
9,759
-
(770)
(560)
(1,330)
6,461
1,968
-
8,429
Grants returned
As at 31 March 2011
Grants earmarked against
property, plant and
equipment
Grants available for use
22 Resort and social recreation income
Group
Note
Amortisation of
deferred income
2011
2010
2011
2010
$’000
$’000
$’000
$’000
7,556
8,238
7,556
8,238
4,904
4,963
-
-
16,224
20,465
-
-
Food and beverage
income
9,735
10,776
-
-
Golfing income
7,254
7,104
-
-
Hotel income
5,259
4,298
-
-
Others
1,221
861
-
-
52,153
56,705
7,556
8,238
Subscription fees
Jackpot machines income
17
Foundation
43
23 Miscellaneous income
Group
2011
Foundation
2010
2011
2010
$’000
$’000
$’000
$’000
Advertising income
583
546
-
-
Hotel income
508
734
-
-
Golfing related income
172
172
-
-
21
148
-
-
799
628
-
15
2,083
2,228
-
15
Banquet income
Other income
24 Resort and social recreation related expenses
Group
2011
2010
$’000
$’000
Cost of food and beverages
3,822
4,053
Jackpot bonus claims
5,484
6,810
Jackpot tax
6,656
8,367
275
206
7,253
7,542
23,490
26,978
Jackpot promotion
Other related expense
25 Maintenance related expenses
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Premises maintenance
expenses
14,002
12,614
15
42
Operating equipment
expenses
-
591
-
-
14,002
13,205
15
42
44
26 Donations, grants and sponsorships
Foundation
Group
Donations
2011
2010
2011
2010
$’000
$’000
$’000
$’000
3,819
3,600
166
95
Grants
15,252
18,124
15,252
18,124
Other sponsorships
18,337
6,703
18,338
6,703
37,408
28,427
33,756
24,922
Grants and donations were mainly given to NTUC and its affiliated unions and co-operatives.
27 Net finance income
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Interest income from:
- bank deposits
374
533
314
418
- debt securities
5,494
1,402
5,432
1,402
11
14
-
-
14,112
16,874
14,042
16,725
1,504
878
1,424
807
13,371
61,264
13,440
59,404
3,835
12,829
3,835
12,829
38,701
93,794
38,487
91,585
(3)
(80)
-
(76)
Loss on sale of investments
(10)
(714)
-
-
Finance expense
(13)
(794)
-
(76)
38,688
93,000
38,487
91,509
- others
Dividend income (gross)
from:
- unquoted equity
investments
Gain in fair value of held
for trading investments
Gain on sale of investments
Finance income
Interest expense of
bank loans
Net finance income
45
28 Surplus for the year
Surplus for the year has been arrived at after charging:
Group
Costs of defined contribution
plans included in staff costs
Loss/(Gain) on disposal
of property, plant and
equipment
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
2,001
1,853
202
233
50
(2,407)
*
(2,441)
* Less than S$’000
29 Income tax expense
The Foundation, being a statutory corporation, is subject to contribution to the Consolidated Fund.
Subsidiaries of the Foundation are subject to tax under Section 13(1)(e) of the Singapore
Income Tax Act.
Group
Note
2011
2010
(Restated)
$’000
$’000
Current tax expense
Current year
Adjustment for prior years
1,117
995
(344)
(73)
773
922
369
687
92
14
461
701
1,234
1,623
Deferred tax expense
Origination and reversal of temporary differences
Adjustment for prior years
18
Total income tax expense
46
29 Income tax expense (cont’d)
Group
Note
2011
2010
(Restated)
S’000
S’000
Reconciliation of effective tax rate
76,012
112,127
1,234
1,623
Provision for contribution to Consolidated Fund
14,059
5,204
Surplus before income tax and Consolidated
Fund contribution
91,305
118,954
Tax calculated using Singapore tax rate of 17%
(2010: 17%)
15,522
20,222
Expenses not deductible for tax purposes
1,525
1,404
Rebates and income not subject to tax
(1,688)
(1,724)
Deferred tax benefit not recognised
221
21
Effect of utilisation of previously unrecognised
temporary differences
(28)
-
(14,059)
(18,241)
7
-
(252)
(59)
1,234
1,623
Total income tax expense
Effect of tax exemption for the Foundation
Others
Overprovision in prior years
The following temporary difference has not been recognised:
Group
Unutilised capital allowances
Unabsorbed tax losses
2011
2010
$’000
$’000
341
256
2,069
799
2,410
1,055
Deferred tax asset has not been recognised in respect of this item because it is not probable that
future taxable profit would be available against which the Group can utilise the benefit.
30 Operating lease arrangements
Group
Operating leases recognised
as expense in the year
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
3,141
3,397
211
172
47
30 Operating lease arrangements (cont’d)
At the reporting date, the Group and Foundation have outstanding non-cancellable operating
leases, which fall due as follows:
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Within one year
7,275
7,226
214
214
In the second to fifth year inclusive
6,963
10,462
96
311
14,238
17,688
310
525
Operating lease payments represent rental payable by the Group and Foundation for their
leasehold office, certain of its premises and rendering of services. Leases are entered into for
a period of two to six years.
The Group as lessors
At the reporting date, the Group has contracted with tenants for the following future minimum
lease payments:
Group
2011
2010
$’000
$’000
Future minimum lease payments receivable:
- Within one year
47,162
45,400
- In the second to fifth year inclusive
90,385
70,072
173,413
167,410
310,960
282,882
- After fifth year
31 Future capital commitments
At the reporting date, the Group and the Foundation have the following commitments:
Group
Estimated amounts committed
for future expenditure but not
provided for in the financial
statements
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
2,155
3,540
2,096
3,479
Estimated amounts committed
for future capital expenditure
but not provided for in the
financial statements
293
382
-
-
Commitment to invest additional
funds in an investee company
10,744
11,917
-
-
48
32 Special Relief Fund
The Special Relief Fund is established by the Ministry of Manpower (MOM) for the purpose of
providing assistance to industrial accident victims.
The Foundation acts as a custodian of the underlying assets of the fund. The assets of the Special
Relief Fund are kept separate from all other assets, and are held in trust by the Foundation.
2011
2010
$’000
$’000
10,003
8,954
Interest income from:
-
Bank deposits
1
8
-
Debt securities
87
8
Dividend income
4
119
Gain/(Loss) on sale of held for trading investments
7
(102)
Gain on sale of available-for-sale investments
-
469
Changes in fair value of held for trading investments
100
604
Financial assistance given to industrial accident
victims
(50)
(50)
Administrative expense
(16)
(7)
10,136
10,003
Changes in investment revaluation reserve during the year were as follows:
2011
2010
$’000
$’000
-
427
Transferred to income and expenditure on disposal
-
(427)
-
-
The above fund is represented by the following assets and liabilities:
Note
Held for trading investments
Interest receivable on fixed deposits and bonds
Fixed deposits
Cash at bank
Other receivables
Other payables
Amount due from Foundation
19
2011
2010
$’000
$’000
8,201
7,325
11
7
124
2,545
1,744
84
3
-
(3)
(64)
56
106
10,136
10,003
49
33 Financial risk management
Risk management framework
Risk management is integral to the whole business of the Group. The Group has a system of
controls in place to create an acceptable balance between the cost of risks occurring and the
cost of managing the risks. The management continually monitors the Group’s risk management
process to ensure that an appropriate balance between risk and control is achieved. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions
and the Group’s activities.
Credit risk
Credit risk refers to the risk that counterparties, including the members of the Clubs, also may
default on their contractual obligations. The Group has adopted procedures in monitoring
collections and default of payments from its debtors and members.
The maximum exposure to credit risk is represented by the carrying amount of each financial
asset, including derivative financial instruments, in the statements of financial position.
The Group places its cash and fixed deposits, with local and foreign fully licensed banks in
Singapore.
Liquidity risk
The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed
adequate by management to finance the Group’s operations and to mitigate the effects of
fluctuations in cash flows.
Interest rate risk
The interest rate risk of the Group and Foundation arises from the following interest-earning
assets and interest-bearing liabilities:
Group
Fixed deposits
Quoted debt securities held
for trading
Finance liabilities
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
87,177
111,333
72,149
87,614
389,194
272,248
389,194
265,656
(49)
(63)
-
-
-
-
-
(947)
476,322
383,518
461,343
352,323
Sensitivity analysis
For the variable rate financial assets and liabilities, an increase/(decrease) of 10 basis points
in interest rate at the reporting date would increase/(decrease) the surplus for the year for
the Group and Foundation by $476,000 and $461,000 (2010: $384,000 and $352,000)
respectively. This analysis assumes that all other variables, in particular foreign currency rates,
remain constant.
50
33 Financial risk management (cont’d)
Foreign currency risk
The foreign currency risk of the Group arises mainly from its held for trading investments and cash and cash
equivalents, which are denominated in foreign currencies other than the functional currency of the Group. The
currency giving rise to this risk is primarily US dollars. The Group uses derivative instruments to hedge against
its foreign currency exposure.
The Group’s and the Foundation’s exposures to US dollars are as follows:
2011
2010
Investments
Other
receivables
Cash
and cash
equivalents
Total
Investments
Cash
and cash
equivalents
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Group
US dollar
277,894
267
3,482
281,643
248,629
305
248,934
277,894
267
3,482
281,643
248,629
305
248,934
Foundation
US dollar
Sensitivity analysis
A 10% strengthening/(weakening) of Singapore dollar against the US dollar at the reporting date would
(decrease)/increase the surplus for the year for the Group and Foundation by ($28,164,000) (2010: $24,893,000
decrease). This analysis assumes that all other variables, in particular interest rates, remain constant.
Investment risk
Investment risk refers to the risk arising from uncertainty in the future values of financial instruments, resulting from
movements in factors such as interest rates, foreign exchange rates and equity as well as fixed income prices.
The Group’s primary exposure to investment risk is associated with the future values of its available-for-sale
investments and held for trading investments.
The SLF Board of Directors has formed the SLF Investment Committee to review the performance of financial
investments and to advise on investment policies so as to achieve the investment objectives of the Foundation.
Sensitivity analysis-securities price risk
A 10% increase/(decrease) in the underlying prices of quoted debt and equity securities available-for-sale and
held for trading would increase/(decrease) equity and surplus of the Group and Foundation by the amounts
shown below. This analysis assumes that all other variables remain constant.
51
Investment risk (cont’d)
Group
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
Equity
39,408
39,408
39,408
39,408
66,895
52,888
66,895
52,228
Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method.
The different levels have been defined as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2: inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from
prices)
• Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs)
Level 1
Level 2
Total
$’000
$’000
$’000
2011
Available-for-sale equity securities
394,082
-
394,082
Held for trading equity securities
279,752
-
279,752
Held for trading debt securities
389,194
-
389,194
1,063,028
-
1,063,028
394,082
-
394,082
256,629
-
256,629
272,248
-
272,248
-
416
416
922,959
416
923,375
394,082
-
394,082
256,629
-
256,629
265,656
-
265,656
-
416
416
916,367
416
916,783
2010
Group
Fair value of financial derivatives
Foundation
Fair value of financial derivatives
The fair value of investments traded in active markets is based on quoted market prices at the
reporting date. The quoted market price used is the current bid price.
52
Estimation of fair values
The following summarises the significant methods and assumptions used in estimating the fair
values of financial instruments of the Group and of the Foundation.
Investments in equity and debt securities
The fair value of financial assets at fair value through profit or loss and available-for-sale
financial assets is determined by reference to their quoted bid prices at the reporting date.
Derivatives
The fair value of forward exchange contracts is based on their listed market price, if available.
If a listed market price is not available, fair value is estimated by discounting the difference
between the contractual forward price and the current forward price for the residual period to
maturity of the contract using a risk-free interest rate (based on government bonds).
Other financial assets and liabilities
The carrying amounts of cash and cash equivalents, trade and other receivables and payables,
provisions and other liabilities and amounts payable approximate their respective fair values
due to the relatively short-term maturity of these financial instruments. The fair values of
other classes of financial assets and liabilities are disclosed in the respective notes to financial
statements.
34 Key management personnel compensation
Compensation payable to key management personnel comprised:
Group
Short-term benefits
Fees paid to directors of
subsidiaries
Honorarium paid to General
Committee members
Foundation
2011
2010
2011
2010
$’000
$’000
$’000
$’000
2,799
2,476
1,322
843
123
121
-
-
13
13
-
-
2,935
2,610
1,322
843
53
35 Subsidiaries
Foundation
Equity investments, at cost
2011
2010
$’000
$’000
124,722
123,722
Details of the subsidiaries of the Foundation are as follows:
Effective proportion
of ownership
interest and
voting power held
Name of subsidiary
Principal activities
Country of
incorporation
2011
2010
%
%
Held by Foundation
Commercial real estate
management
Singapore
100
100
Development and
maintenance of holiday
resorts and country
clubs
Singapore
100
100
(Pte) Ltd
Management of a golf
and social club
Singapore
100
100
Investment holding
Singapore
100
100
SLF AMK Pte Ltd
Developer of a retail
mall
Singapore
100
100
OMB Pte Ltd
Commercial real estate
management
Singapore
100
100
Employment And
Employability Institute
Pte Ltd
Management of training
facilities
Singapore
100
100
SLF Strategic Advisers
Pte Ltd
Investment management
and advisory
Singapore
100
-
54
36 Prior year adjustments
On 18 March 2011, co-operatives that have been making contributions to the Foundation received a memorandum
clarifying that such contributions should not include capital gains arising from the disposal of any office premises
and any shares by the co-operatives. This is in accordance with the Co-operative Societies (Modification)
Order 1997. Any revisions to the contributions previously made by the co-operatives must be submitted to the
Foundation by 31 December 2011.
The Foundation has since received corrective claims from certain co-operatives. The Foundation has not made
any adjustments in respect of claims from co-operatives that have not yet been submitted up to the date when the
financial statements are authorised for issue.
In accordance to SB-FRS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the following
balances have been restated:
Foundation
2010
as previously
reported
Adjustments
2010
as restated
2009
as previously
reported
Adjustments
2009
as restated
$’000
$’000
$’000
$’000
$’000
$’000
Statement of
financial position
Accruals: donations,
grants and
sponsorships
accruals
(4,118)
(14,419)
(18,537)
(2,412)
(12,987)
(15,399)
(831,485)
11,967
(819,518)
(730,290)
12,987
(717,303)
(7,655)
2,451
(5,204)
-
Affiliation fees and
contributions
35,403
(1,432)
33,971
Contributions to
Consolidated Fund
(7,655)
2,451
(5,204)
Accumulated fund
Contribution payable
to Consolidated
Fund
Income and
expenditure
statement
-
-
1 Marina Boulevard
11-01 Singapore 018989
Tel 6213 8585
Fax6327 3700
ISSN: 1793-4192

growing - Parliament Of Singapore

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