Paid millions but still screwed up

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Forum: Impose stiffer penalties on rail operators for disruptions​

Oct 17, 2024

I agree with Transport Minister Chee Hong Tat that public transport fare formulas should primarily reflect changes in operating costs (Public transport fares should not be tied to service levels, disruptions: Chee Hong Tat, Oct 15).
At first glance, this may seem contradictory. After all, we are paying more and may still be experiencing service disruptions. But there is room to introduce stricter penalties for rail operators to ensure accountability.
First, the Government should consider awarding rail contracts to operators with the best performance records. It is unclear why the Thomson-East Coast Line contract was awarded to SMRT, given that several lines operated by SMRT have been prone to frequent disruptions.
To improve service quality, Singapore should open up the bidding process to world-class rail operators globally, rather than limiting it to local players like SBS and SMRT.
Second, there appear to be insufficient penalties for operators who fail to meet reliability targets, which include factors like distance travelled between failures.
Currently, when targets are not met, operators simply do not receive incentive payments. For a disruption, rail operators can be fined a maximum of 10 per cent of their annual fare revenue. But the fines imposed so far seem less.
SMRT was fined $5.4 million for a breakdown in 2015 that affected more than 250,000 commuters, and $1.5 million for another disruption in 2017 that affected 230,000 commuters for a staggering 14.5 hours. Why was the fine lower for a longer disruption? It raises questions about how fine amounts are determined.

I look forward to the findings of the current investigations into the recent disruptions, as well as the slew of measures planned to prevent such occurrences.

Desmond Teo Mingjie

 

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Questions to be answered in the Allianz-Income saga​

The deal between Allianz and Income Insurance was called off by the Singapore Government. ST PHOTO: ARIFFIN JAMAR
Angela Tan and Kang Wan Chern

Oct 18, 2024

SINGAPORE - A plan for German insurer Allianz to buy a majority stake in Singapore’s Income Insurance went awry when a key piece of information belatedly came to light.
Allianz’s plan to return $1.85 billion in cash to shareholders within three years after the transaction in a capital reduction exercise proved to be a sticking point, prompting the Government to urgently pass new laws on Oct 16 to halt the deal.
Had the planned deal gone through, Allianz would have taken a stake of least 51 per cent in Income. NTUC Enterprise would have seen its stake in Income shaved from 72.8 per cent to between 21.8 per cent and 49 per cent, depending on how minority shareholders tender their shares.
The changes to the Insurance Act allow the minister in charge of the Monetary Authority of Singapore to withhold approval in cases that involve an insurer that is a cooperative or is linked to one.
Income used to be a cooperative before it changed its legal structure to a company in 2022, and parent NTUC Enterprise is a cooperative.
NTUC Enterprise, in turn, is set up by the National Trades Union Congress (NTUC), the Singapore Labour Foundation and their affiliated unions.
In a four-hour debate on Oct 16, MPs from both the ruling and opposition parties – as well as Nominated MPs – raised several points related to Income and NTUC entities.

Industry experts who spoke to The Straits Times also questioned the role of those involved in the deal.
ST examines the issues and some of the questions that remain unanswered.

Communication about the capital reduction plan​

NTUC deputy secretary-general Desmond Tan said on Oct 16 that the labour movement’s central committee did not know of the insurers’ plan to return $1.85 billion to shareholders before it was made known in Parliament on Oct 14.

He was responding to questions posed by backbenchers including Progress Singapore Party’s Non-Constituency MP Leong Mun Wai and Nominated MP Raj Joshua Thomas.
Mr Leong had asked about when NTUC’s leaders were briefed on the offer. “If the NTUC central committee did not know the full details, then why did NE (NTUC Enterprise) and Income not brief them on the full details of the transaction?”
Mr Thomas pointed out that NTUC’s secretary-general Ng Chee Meng and president K. Thanaletchimi had issued a statement on Aug 5 that Income can continue to fulfil its social mission only if it has access to additional resources and the ability to scale.
“Did Income brief the NTUC leadership of the proposed initiative to reduce share capital?” he asked.
Mr Tan said that NTUC is a major shareholder of NTUC Enterprise and does not get involved in day-to-day operations, with business decisions delegated to the board of NTUC Enterprise.
In a nod to the questions that MPs posed to NTUC, Income and NTUC Enterprise during the debate, he said: “I will take these comments and questions back... to the relevant entities, so they can find a suitable occasion to address them.”

Singapore Management University’s Associate Professor Eugene Tan told ST that “it boggles the mind that NTUC’s central committee did not know of the capital reduction”.
He noted that NTUC’s Mr Ng also sits on NTUC Enterprise’s board.
“Serious questions must be asked on why this vital part of the proposed deal was not prominently surfaced by NTUC Enterprise to Income’s board and shareholders, as well as the authorities,” Prof Tan said.
Professor Lawrence Loh, director of NUS Business School’s Centre for Governance and Sustainability, added that the Government could also consider improving its regulatory coordination.

Accountability and leadership​

Questions were also raised about how those involved in the decision-making process might be held accountable for how the proposed deal did not match up to earlier assurances made by Income.
During Income’s corporatisation in 2022, it had obtained an exemption from the Ministry of Culture, Community and Youth (MCCY), which oversees the governance of co-ops, to carry over a surplus of $2 billion to the new entity.
Then, Income also told MCCY that it was aiming to build up capital resources and enhance its financial strength.
Mr Thomas asked in Parliament if the Government would be taking steps to ascertain how Income could “negotiate, agree and attempt” to execute a deal with Allianz that was the “opposite” of Income’s representations to MCCY.
He noted that the chairman and chief executive of Income at the time of corporatisation and announcement of the proposed deal with Allianz were the same people.
“How involved were they and the senior management of Income in, on the one hand, making representations to MCCY, and, on the other, arranging the deal with Allianz? Did they not see the contradictions?” Mr Thomas said.
Mr Leong also outlined concerns in Parliament over what NTUC leaders had represented to the public about the deal, when there appeared to be a lack of safeguards on the ability of Income to carry out its social mission.
“The leaders of NTUC, NE and Income owe the public a more substantial explanation on this,” he said.
Prof Tan said that a thorough explanation of how things went wrong is warranted. “Otherwise, the next proposed merger or acquisition is going to have stakeholders be wary from the get-go.”
He also raised doubts about Income’s financial adviser Morgan Stanley. “Did they not see the capital reduction as raising serious questions about Income’s corporatisation and its social mission?”
Income’s chairman Ronald Ong is also chairman of Morgan Stanley’s South-east Asia business. Income said in July that he had recused himself from the decision when Morgan Stanley was appointed as the financial adviser for the deal.
NMP Neil Parekh said during the Oct 16 debate that he failed to understand how Income does not have larger market share and greater pricing power, and said the company needed “strengthening”.
To this end, he suggested that “a new Singaporean-controlled board of directors with real talent, real experience and a real vision” could be put in place.
They could then be tasked with developing a “coherent five-to-seven-year plan to make Income Insurance a world-class company operating profitably not only in Singapore but also in other countries in Asia ex-Japan”, he said.

What next for Income and its shareholders​

MPs also called for explanations of how Income will continue to operate profitably and fulfil its social mission going forward.
Workers’ Party MP He Ting Ru (Sengkang GRC) asked the Government to articulate what it sees as Income’s social mission now, and in the future, given the evolving and competitive insurance landscape.
She asked the Government to redefine Income’s social mission as a life or health insurer to avoid the risk of it focusing only on delivering its present obligations, such as participating in national-level insurance programmes and providing low-cost schemes to union members.
“If we leave the question of what is ‘social mission’ unanswered, it risks presenting these specific matters as central, while missing the wider picture of how Income is fundamentally able to fulfil its social mission as an insurer,” she said.
Mr Thomas said the question of how Income can leverage its corporate structure to meet social objectives may need to be looked at, adding: “I think that Income has a lot of explaining to do.”
Prof Tan noted that had the capital reduction gone ahead, NTUC Enterprise would have a significant cash infusion of about $1 billion that it otherwise would have no access to, and which it could then deploy elsewhere.
“The losers, however, would be Income and Singaporeans because of the real risk that Income would erase or lose its social DNA. As a minority shareholder, NTUC Enterprise could struggle to keep Income’s social mission alive,” he said.
For now, it seems that “elements within NTUC have lost sight of the purpose of its existence. There seems to be a quest for profits that is at odds with NTUC’s purpose”, Prof Tan added.

Sequence of key events​

July 17: German insurer Allianz offers to buy a stake of at least 51 per cent in Income Insurance in a $2.2 billion cash deal.
Mid-July: Allianz, Income and its parent NTUC Enterprise submit plans to the Monetary Authority of Singapore (MAS) around the time the offer was made. It includes details about Income returning $1.85 billion in cash to shareholders within the first three years after the deal wraps up. This was not publicly disclosed.
July 25: NTUC Enterprise chairman Lim Boon Heng says that Income will continue to provide affordable insurance after the deal. The statement comes after some former executives and members of the public raised concerns about the insurer’s social mission.
July 27: Income issues a statement that its chairman Ronald Ong had recused himself when Morgan Stanley was appointed as the financial adviser for the deal, after questions were raised about it.
July 30: Mr Lim, Income chief executive Andrew Yeo and Income board’s lead independent director Joy Tan further clarify concerns over the deal in an interview with ST and in a separate joint statement.
Aug 4: NTUC Enterprise and Income rebuts an open letter by former NTUC Income chief executive Tan Suee Chieh, in which he objected to the Allianz offer.
MCCY Minister Edwin Tong writes in a Facebook post that co-ops as social enterprises must be financially sustainable in order to better serve their members in a fast changing economic environment.
Aug 5: NTUC’s secretary-general Ng Chee Meng and president K Thanaletchimi say in a joint statement that the central committee was briefed on the deal, and outlined why Income needed to become more competitive.
Aug 6: The deal is debated in Parliament. The Ministry of Culture, Community and Youth (MCCY) is unaware of the post-transaction details at this time.
After Aug 6: MCCY continues to do due diligence and enquire further into proposed deal. MAS provides MCCY with further details, including Income’s capital optimisation plan as the regulator felt it could be relevant to the ministry’s views on the deal. MCCY had not seen this information earlier.
Oct 14: MCCY minister Edwin Tong tells Parliament that the Government will halt the deal in its current form on concerns over its structure and ability of Income to continue serving its social mission. A Bill to amend the Insurance Act is tabled on an urgent basis.
In a late statement, Allianz says it will consider revising the deal structure. Income and NTUC Enterprise say they will work closely with stakeholders on the next course of action.
Oct 16: NTUC Deputy Secretary-General Desmond Tan tells Parliament that NTUC’s central committee was unaware of the capital extraction plan and learnt of it on Oct 14. MPs debate the issue for nearly four hours, and vote to pass the Bill.

 

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‘I would do it differently, if I were to do it again’: Outgoing DBS chief Piyush Gupta on the bank’s tech​

Prisca Ang
Business Correspondent

Nov 07, 2024

SINGAPORE – Outgoing DBS chief executive Piyush Gupta would have done things differently if he were given another chance to build the bank’s technology capabilities.
Mr Gupta’s 15-year tenure as head honcho saw DBS go all in to develop tech systems that transformed much of the bank’s operations.
DBS, South-east Asia’s largest bank, started its digital transformation in 2014, the same year it launched its PayLah! mobile wallet that has since found a home in the smartphones of many customers. This was followed by other milestones, such as eliminating physical tokens for corporate transactions.
But the bank has also had several disruptions in recent years, including a two-day outage to its digital banking services in November 2021.
Those seemed uppermost in Mr Gupta’s mind when he told the Singapore FinTech Festival on Nov 7 that in regard to digital capabilities, “I did not actually think enough, and hard enough, about the operational complexity that comes with a distributed microservice architecture”.
In microservices, software is composed of independent units that communicate with one another.
“So how do you actually focus and dial up a lot more on resiliency while you’re pushing the innovation and speed agenda? I would do it differently, if I were to do it again,” he said in a dialogue with Monetary Authority of Singapore chief fintech officer Sopnendu Mohanty.

Setbacks are necessary for progress, though, as Mr Gupta knows all too well. Before joining DBS, he spent 27 years at Citi except for a one-year stint as a tech entrepreneur in 2000 when the Internet was taking off.
When the dot-com bubble burst, Mr Gupta had to pull the plug on his venture and subsequently found himself feeling lost.
“I left a very thriving, flourishing career. Apart from the loss of face, there was also a loss of self-confidence ... I decided to come back to banking and as I evaluated my career at the time, it seemed that I had lost at least two or three years in my career from taking this divergence,” said Mr Gupta, 64, who previously described the acute anxiety he experienced when his business failed.

“It wasn’t easy. It took me some time to get back into the swing and rhythm of things,” he said.
In hindsight, the business failure was a defining moment, added Mr Gupta, who will retire in March 2025 with veteran banker Tan Su Shan stepping into the role.
“It increased my appetite to take risks. Once you see the bottom of the barrel, you think, how much worse can it get? And you’re willing to step up,” he noted.
The second change came in the form of shifting priorities. “Like a lot of young people, my whole ambition was driven by career success. How do I get promoted? How do I become managing director? How do I move on the fast track?
“When I came back to banking, it was with the singular realisation that I enjoyed banking, that I thought I was good at it. For the first time, I consciously thought about the idea of impact and that (banking) was an area where I could make a difference.”
Over the years, Mr Gupta has also realised the truth in the saying “culture eats strategy for breakfast”, adding: “If you can create a culture of entrepreneurship and risk taking, then it’s like magic.”
Mr Gupta recalled how he was initially dead set against PayLah! as he thought a mobile wallet was “superfluous” in a world where people can debit funds directly from their bank accounts.
But his staff persuaded him, and PayLah! now has nearly three million users, offering not only payments but also deals and rewards.
When Mr Mohanty asked how he will manage the transition to retirement, Mr Gupta pointed to his passion for nature and wildlife, as well as education.
He is chairman of both Singapore Management University and Mandai Park Holdings – the holding company of Mandai Wildlife Group, which operates Bird Paradise, Night Safari, River Wonders and Singapore Zoo.
Mr Gupta, who enjoys bird watching, said: “When you get to my stage of life, the biggest premium is time. I’ve done over 40 years of banking and finance ... I want to make sure I leave space for the other things in my life, so I don’t look back with regret.”

 

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Upgraded Old Airport Road Food Centre cleaner, brighter, but some bemoan the ventilation​

The Old Airport Road Food Centre and Shopping Mall is managed by Kopitiam, which is part of the FairPrice Group. ST PHOTO: JASON QUAH
Chin Soo Fang and Fatmah Khan

Nov 07, 2024

SINGAPORE – Dakota resident Oh Ai Khim missed making a daily pit stop for a meal at her favourite food centre when it was closed for four months to get upgraded.
“I was ‘suffering’ as I missed the variety of delicious food here,” she said on Nov 4. “I’m glad to be back and I can see that it’s cleaner, cooler and brighter.”
The 70-year-old retired dishwasher summed up the sentiments of quite a few patrons and hawkers after revisiting the food centre and shopping mall at Block 51 Old Airport Road, which reopened on Oct 1.
The popular food centre had been closed from June 1 to Sept 30 for refurbishment.
Marine Parade Town Council said the cyclical repair and redecoration (R&R) works included repainting interior and exterior walls, repairing defects in common areas and replacing tables and chairs.
High-volume, low-speed fans were installed, in addition to energy-efficient LED lighting. The toilets were refurbished and exhaust systems enhanced.
Bird netting and spikes were added and the outdoor seating area was improved, along with the installation of new floor and wall tiles.


Mr Ding Fang Zhi, 50, opened his new stall – 98 Handmade Noodle, Fish Soup & Spinach Soup – at the food centre after the refurbishment.
Mr Ding, whose stall was previously in Serangoon, said: “I appreciate the fans which make the place cooler, and the new tables and chairs for a better dining experience.”
Others, however, had mixed feelings about the upgrading works.

They include Mr Lim Kee Yong, whose letter was published in The Straits Times Forum page on Oct 29.
He said that despite the installation of larger ceiling fans, “ventilation remains poor because there is no proper suction system, and smoke emitted from the barbecuing and deep-frying accumulates and makes people cough”.
The cooks and helpers also have to work in very cramped conditions, he added.

The popular food centre was closed from June 1 to Sept 30 for refurbishment. ST PHOTO: JASON QUAH
He said that with the installation of the new tables and chairs, the walkways seem narrower. There is little aisle space for people to walk through and those using mobility vehicles or wheelchairs find it impossible to navigate between tables, he said.
This was echoed by Mr Zainudeen Talib, 53, who runs Safura Muslim Food, another stall at the food centre. He said the space between tables has become more cramped and his older customers have bumped against the chairs.
“Previously, people with strollers and those using electric wheelchairs could come in and order their food. Now, no space,” he said.
In its reply on Nov 5, the town council addressed concerns about the perceived narrowing of space with the new tables and chairs, saying that it maintained a similar number of seats as before.
On concerns about enclosed spaces in the centre, it said additional wall fans and high-volume low-speed fans have been installed to improve airflow.
“We are also working closely with the hawkers’ association to remind stallholders to ensure that the filters and fans of the exhaust systems within the stalls are maintained and cleaned regularly to help manage cooking fumes,” it added.

Some people felt that the facelift was “too little, too slow”.
Mr Ali, 54, who manages 786 Nasi Lemak and gave only his first name, said: “We had hoped that the upgrading works would help to improve the kitchen area, but no, they told us no.”
Mr Alan Lee, who owns Geylang Lor 20 Banana Fritters, said while he was satisfied with the upgrading works, the progress was too slow.
“Two months should be enough. I had to survive on my savings during the four months of closure,” he said.
Mr Shawn Loke, a 54-year-old construction manager, said: “Judging by the upgrading works, two months should be enough. Maybe they did not want to rush, but the hawkers cannot be out of jobs for too long.”
Marketing professional Allan Koh, 61, said the works were “nothing spectacular”.
“Brighter, cleaner but not much of a difference,” he said. “This should not have taken four months.”
Ms Jane Lim, a 35-year-old housewife who lives nearby, felt that while the food centre is now brighter and cooler, the “changes do not justify the length of the upgrading works”.

Bird netting and spikes were added and the outdoor seating area was improved, along with the installation of new floor and wall tiles. ST PHOTO: JASON QUAH
Replying to queries from ST, Mr Lim Biow Chuan, MP for Mountbatten, said: “It is cyclical R&R works and not for renovation or for reconstruction. The intent was to create a rejuvenated space and enhance the dining experience for consumers.”
He added that there should not be any reduction of walkway space as no additional tables and chairs were installed.
Given that it is one of the larger food centres in Singapore – with 168 hawker stalls on the first floor and 54 shops on its second level – the R&R works were scheduled for four months, he said, adding that this was determined in consultation with the hawkers’ association to account for the scale of improvements.
As the works were extensive, the town council carried out the works in stages, and factored in time for additional checks and thorough cleaning, Mr Lim said. The allocated timeline allowed the town council to clear the sewer lines, and carry out the degreasing and cleaning of the main exhaust ducts.
“I have already walked around the food centre a few times and feedback from patrons and stallholders has been positive, with some noting improved ventilation and lighting from the new fans and LED installations,” he said.
However, he said that further enhancements to airflow could help reduce cooking fumes and reiterated that the town council is working with the hawkers’ association to encourage stallholders to maintain and regularly clean the exhaust filters and fans within the stalls, as grease build-up can limit their effectiveness and present a fire risk.
With the reopening, some hawkers have raised prices to cope with rising operational costs.

Mr Derek Lim of Western Barbeque in Old Airport Road said he has increased his prices by about 50 cents.
“It is not due to the upgrading works, but the increase in GST and suppliers’ costs,” he said. “We held back from raising prices for a long time but felt that the reopening was a good time to do so finally.”
Ms Ellis Phua, who has been running 97 Nasi Lemak at the food centre since 2021, also made slight adjustments to her prices after the reopening.
She said that though the recent upgrading works might seem “minor” to some, they have made a noticeable difference from a stall owner’s perspective.
“The hawker centre now feels brighter and cleaner, which enhances the overall atmosphere for us and the customers,” the 44-year-old said.
Although several hawkers saw a slight improvement in footfall after the reopening, those on the upper level said it still feels like a “ghost town”. This is where stall owners provide clothes alteration services and sell a range of items like children’s toys, clothes and shoes. Only a handful of stalls have reopened and few patrons venture upstairs.
Hardware store owner Colin Ma, 75, said: “Business was slow before, but it is worse now.”
The Old Airport Road Food Centre and Shopping Mall is managed by Kopitiam, which is part of the FairPrice Group. The group’s spokesperson said overall traffic has increased and out of the 222 stalls in total, 205 are occupied.
There will be a new FairPrice supermarket on the second level in 2025.

 

[mojito]

From ceca to dei hire. From the cold drum to the fire.

 

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Ah neh has $93 million worth of DBS shares while the Sinkies suffer from ATM and internet banking outages because of his mismanagement.

DBS CEO Piyush Gupta sells $12.6 million worth of shares as DBS hits all-time high​

The transactions reduced DBS CEO Piyush Gupta's current holdings to 1.9 million shares from 2.2 million shares before. PHOTO: ST FILE
Benjamin Cher

Nov 11, 2024


SINGAPORE - Outgoing DBS chief executive officer Piyush Gupta sold lots of his DBS shares on Nov 7 and 8, amid a bank rally that sent DBS shares past the $40 mark.
In a bourse filing on Nov 11, the bank disclosed that he sold 300,000 shares over those two days – 100,000 shares at $41.7513 a share on Nov 7, and 200,000 shares at $42.2023 a share the following day.
The two transactions netted Gupta $12.6 million, and reduced his current holdings to 1.9 million DBS shares from 2.2 million shares before.
His transactions come as Singapore banking stocks rallied after consensus-beating performances for the third quarter of 2024. DBS, UOB and OCBC shares continued to rally on Nov 11, hitting new all-time highs at the close of trading.
DBS closed up 0.8 per cent or $0.35 to $42.75, OCBC closed up 1.6 per cent or $0.26 to $16.32, while UOB was the top gainer on the Straits Times Index, up 2.7 per cent or $0.96 to $36.65. THE BUSINESS TIMES

 

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CapitaLand warns of China losses as Singapore property investor cuts exposure​

CapitaLand's current exposure to China is 27 per cent of its $113 billion in funds. PHOTO: LIANHE ZAOBAO

Nov 22, 2024

SINGAPORE – CapitaLand Investment, one of Asia’s largest property investment managers, warned of potential losses as it seeks to extricate itself from China’s real estate crisis.

The Singapore-listed firm wants to reduce its exposure in the world’s second-largest economy to 10-20 per cent of its expected $200 billion in funds under management by 2028, it said in an investor day presentation on Nov 22.

In doing so, the company may incur “potential fair value or divestment losses” that impact near-medium term non-operating earnings, it added.

Its current exposure to China is 27 per cent of its $113 billion in funds.

The listed investment arm of CapitaLand Group, which is owned by Singapore state investor Temasek, has long been a major investor in China, but a years-long property downturn there has made these bets, spanning from office space to malls, turn sour.

These struggles have hit the company’s stock, which is down almost 12 per cent in 2024 compared with a 16 per cent gain in the Straits Times Index.

Selling its property in China has been difficult, with the bulk of the $4.6 billion divestments in 2024 up to early November coming from Singapore and other countries like Japan.

CapitaLand Investment is seeking to more than double its operating earnings to more than $1 billion by 2028-2030, and could do new real estate investment trust listings in Australia, China and India, it said in the presentation.

So far, it has sought to increase its exposure elsewhere, including most recently announcing it will buy out SC Capital Partners Group, a Japan-focused property investor.

CapitaLand Investment’s management said in an analyst call earlier in November that it hopes to divest about $1 billion in China in 2024, according to a Citigroup Nov 6 note, which added that it estimates the company has just sold about $300 million so far.

Citigroup also said that the Singapore firm is aiming to divest about $3.5 billion Chinese assets on its balance sheet over three years, although it will stop giving divestment targets in 2025. BLOOMBERG

 

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Misunderstanding of internal govt circular led to unmasking of NRIC numbers on Bizfile: Acra​

Acra rolled out its new Bizfile portal on Dec 9. It allowed the public to access full NRIC numbers via a search for free, sparking concerns about data privacy.PHOTO: ACRA

Lee Li Ying
Dec 19, 2024

SINGAPORE – A misunderstanding of an internal government circular and lack of coordination between government staff had led to the disclosure of full NRIC numbers on a new business portal, said the chief executive of Accounting and Corporate Regulatory Authority (Acra).

The Ministry of Digital Development and Information (MDDI) had in July issued a circular to government agencies telling them to stop using masked NRIC numbers in new business processes and services as part of a broader policy shift to gradually move away from using NRIC numbers as a method of authentication.

In a press conference on Dec 19, Acra chief executive Chia-Tern Huey Min said staff from her agency had “interpreted the requirements to cease the use of masked NRIC numbers as needing to unmask the numbers in our new Bizfile portal”.


“Acra sought to clarify with MDDI what were the scope and implementation timeline of this new requirement. But communications between the two agencies were not sufficiently clear, leading to Acra’s mistaken thinking,” said Mrs Chia-Tern.

Acra rolled out its new Bizfile portal on Dec 9. It allowed the public to access full NRIC numbers via a search for free, sparking concerns about data privacy.


Mrs Chia-Tern apologised for the lapse, which she said had caused anxiety and confusion among the public.

“As the owner of the Bizfile portal, Acra should have been more mindful that many Singaporeans have long treated their NRIC numbers as private and confidential information, and would not want to have their full NRIC numbers searchable on the new portal,” she said.

“We should also have taken more deliberate care to ensure that such information, deemed sensitive by many, is provided only when needed. Acra will learn from this lesson and tighten our systems and processes,” she added.

Minister for Digital Development and Information Josephine Teo said the miscommunication took place despite attempts to coordinate and seek clarification. “We are very sorry,” she added.

Acknowledging the confusion caused by the Government’s statement that it is moving away from masked NRIC numbers, she clarified multiple times during the two-hour press conference that this new approach does not mean automatically unmasking and using a person’s full NRIC number in all circumstances.

The Government is not asking for all NRIC numbers to suddenly be revealed, Mrs Teo said.

She noted that the Government uses full NRIC numbers to facilitate services such as disbursements of grants and subsidies to different individuals with the same name, for example.

The private sector will be consulted to get feedback on what scenarios may require the use of unmasked NRIC numbers, among other issues, Mrs Teo added.


Second Minister for Finance Indranee Rajah said the Government is reviewing the incident to identify areas where communication and coordination between agencies can be improved.

“It is still premature at this stage to say if anything is going to happen to particular staff in question... This is an instance of a misunderstanding. One has to ascertain exactly how that came about, and have a look at the full facts before deciding on what, if anything needs to be done,” she said.

Mrs Chia-Tern also explained Acra’s role as the national business registry, which has to maintain transparency in Singapore’s business environment.

To do so, it has to establish and administer a repository of information relating to business entities and the people behind the entities, and provide access to this information.

The Bizfile portal allows the public to search for the name and unique entity number (UEN) of companies, as well as company directors and shareholders.

This information enables companies or individuals to carry out checks before they decide to do business with another party.

For example, a company considering appointing an individual as a board director can check the Bizfile portal for the individual’s associations with other companies.

“This helps the company in a few ways – it can reveal potential conflicts of interest, past bankruptcies involving the individual, the performance of companies the individual is associated with, and whether the individual is holding an excessive number of directorships. These insights are crucial for the company to obtain but may not be appropriate to inquire directly from the individual,” said Mrs Chia-Tern.

 

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This is what happens when Temasek hires a PAP grassroots leader to run a company that belongs to all Singapore citizens.

SingPost Singapore CEO Shahrin Abdol Salam has resigned “to pursue opportunities outside the company”.PHOTOS: SINGPOST, SHINTARO TAY

Joyce Lim
Feb 03, 2025

SINGAPORE – The chief executive for Singapore Post’s local operations, Mr Shahrin Abdol Salam, has resigned, The Straits Times has learnt.

Mr Shahrin’s resignation comes after he spent less than a year in his role.

He joined SingPost as its Singapore CEO on May 1, 2024, taking over from Ms Neo Su Yin, who had left the firm to join dnata as managing director for Singapore.

Ms Neo, who recently rejoined SingPost as group chief operating officer following the termination of its top executives, will assume additional responsibility as Singapore CEO following Mr Shahrin’s departure.

A SingPost spokesman confirmed to ST that Mr Shahrin has resigned “to pursue opportunities outside the company”, and that a transition timeline is being worked out with Ms Neo.

“Su Yin is familiar with the Singapore business unit, having run the business from November 2021 till May 2024,” said the spokesman.

“We thank Shahrin for his contribution to SingPost during his time and wish him well in his future endeavors.”

Mr Shahrin’s departure comes at a time of significant leadership upheaval within SingPost, following the recent terminations of former group CEO Vincent Phang, group chief financial officer Vincent Yik, and chief of the international business unit Li Yu.

The trio were fired over their handling of internal investigations following a whistle-blower’s report in 2024.

ST understands that Mr Shahrin’s resignation, which came on the morning of Feb 3, is not linked to that incident.

The whistle-blower’s report, which related to SingPost’s non-regulated international e-commerce logistics parcels business, had led to an internal investigation.

SingPost had found that three managers in the international business unit had committed serious breaches of the company’s code of conduct by manually updating the “delivery failure” status for parcels without supporting documents or actual delivery attempts.

The controversy resulted in the dismissal of Mr Phang, Mr Yik, and Mr Yu in December 2024, all of whom are currently contesting their terminations.

On Jan 22, 2025, SingPost appointed Mr Isaac Mah as the new group CFO. Mr Mah was previously CFO of SingPost’s Australia business, Freight Management Holdings.

Before joining SingPost, Mr Shahrin held roles as both managing director of SMRT’s Thomson-East Coast Line and the senior vice-president of strategic relations at SMRT Corporation.

According to his profile on the SingPost website, Mr Shahrin has more than 25 years of experience in areas including managing operations, strategic planning and asset management.

He is also an active grassroots leader in West Coast GRC, and was awarded the Pingat Bakti Masyarakat (Public Service Medal) in 2019.

As at 2.45pm, shares of SingPost were trading at 56 cents.

 

[LITTLEREDDOT]

Forum: Steps taken to resolve Bizfile issues and improve IT management​

Feb 27, 2025

We thank Mr Tan Swee Leng for the feedback in his letter “MOF should set up panel to find root cause of Acra’s portal glitches” (Feb 20).

We recognise the difficulties that users have faced due to the issues with Acra’s new Bizfile portal. Acra is working hard with its IT vendor to resolve them as soon as possible.

In the meantime, Acra has been providing direct assistance to users with urgent needs. We thank users for their patience and understanding.

The Ministry of Finance is also working with Acra and the Ministry of Digital Development and Information to look into the root causes, identify learning points and determine the follow-up actions needed.

The lessons learnt from the review will be incorporated into broader plans to develop capabilities in the Government on the planning, design and management of IT projects, in partnership with the industry.

Chin Yi Zhuan
Director (Economic Programmes)
Ministry of Finance

 

[LITTLEREDDOT]

Ministers overseeing agencies involved in NRIC saga have to bear overall responsibility: SM Teo​

The review panel found lapses in the process and communication between the Accounting and Corporate Regulatory Authority and Ministry of Digital Development and Information.PHOTO: LIANHE ZAOBAO FILE

Osmond Chia
Mar 06, 2025

SINGAPORE - Prime Minister Lawrence Wong will take the NRIC incident into account when evaluating the ministers in charge of the government agencies involved, said Senior Minister Teo Chee Hean on March 6.

Highlighting the importance of accountability, he said the officers and senior management involved in missteps that led to the disclosure of full NRIC numbers on a government business portal could face a range of “appropriate measures”, from counselling to retraining and reductions in their performance grade and performance-based payments.

SM Teo told Parliament that the political office-holders overseeing the Accounting and Corporate Regulatory Authority (Acra) and Ministry of Digital Development and Information (MDDI) have to bear overall responsibility for the organisations under their charge.

Digital Development and Information Minister Josephine Teo and Second Minister for Finance Indranee Rajah have publicly accepted this responsibility and apologised for the incident, he said in a ministerial statement on the matter.

“The Prime Minister will take into account this incident in his evaluation of the Ministers,” he added.

His statement comes after a review panel investigated the incident that took place on Dec 9, 2024, and found lapses in the process and communication between Acra and MDDI.

SM Teo told Parliament that trust in the public service is essential, and maintaining that trust is central to how the Government operates.

“When things go wrong, we are upfront with Singaporeans on where we have fallen short. We conduct thorough reviews and make improvements to our systems and processes to serve Singaporeans better while remaining fair to our officers,” he added.

“This recent incident, while regrettable, demonstrates the Government’s commitment to continuous improvement, to uphold the trust Singaporeans have placed in us.”

He said that while the review found there was no malicious or wilful wrongdoing by the officers involved, “there were inadequacies in their judgment and actions”.

On their part, the ministers have to bear overall responsibility, “regardless of whether they had specific or direct responsibility for the actions that led to the shortcomings that occurred”, he added.

In its report released on March 3, the review panel flagged six instances where the agencies could have done better, including clearer communication from MDDI.

The ministry was unclear in its policy communications issued to various agencies on the Government’s plans to end the use of NRIC numbers for authentication, leading to the confusion, which resulted in full NRIC numbers being disclosed on Acra’s Bizfile portal.


Officers involved in the shortcomings include those whose actions contributed directly to the shortcomings, as well as senior management who were responsible for providing oversight and guidance to the officers, said SM Teo in a ministerial statement on the review.

The review panel on Feb 25 submitted its report for review by SM Teo, who is also Minister-in-charge of Public Sector Data Governance. He accepted the findings and reported them to Prime Minister Lawrence Wong the next day.

The permanent secretaries of the Smart Nation and Digital Government Office (now under MDDI) were responsible for implementing the policy, while the Acra chief executive was responsible for the design and implementation of the new Bizfile portal, SM Teo added.

He clarified that the review was not a disciplinary process and that any disciplinary action levelled at the officers, if warranted, will need to be carried out by the respective public agencies involved.

SM Teo said the public service holds its officers to a high standard of conduct.

“Singaporeans deserve and expect this,” he said. “Given the range and complexity of public services, from time to time, mistakes will be made. If there is misconduct or malicious intent, we will deal with it severely and those involved will be punished.”

Where there was no malicious or wilful wrongdoing, due consideration should be given to whether the officers had acted in good faith in deciding on what action to take, SM Teo said.

He added that the incident offers valuable lessons for the wider public service that agencies must take on board, to avoid similar incidents from recurring.

“This Bizfile incident demonstrates that close coordination and careful attention to detail are required. Sometimes it is a single lapse, but at other times, it can be a confluence of factors that can lead to such incidents,” he said.

The review panel, led by head of civil service Leo Yip, said the shortcomings included security lapses at Acra that contravened the Government’s internal data management rules, and unclear communication between Acra and MDDI.

The panel was also critical of the agencies’ public communication and response to public concerns, which it said should have been better coordinated and clearer.

“In hindsight, the Government should have made clear to the public at the outset that moving away from the use of partial NRIC numbers did not automatically mean using full NRIC numbers in every case, or disclosing them on a large scale,” the panel said.

Mrs Teo, Ms Indranee and Acra chief executive Chia-Tern Huey Min held a press conference on Dec 19, 2024, to address concerns and questions about the incident.

By sharing full NRIC numbers, Acra was also found to have contravened the Government’s internal code, called IM8, a set of instructions that govern how public agencies use and disclose citizens’ data.

The public sector’s personal data protection standards in the Public Sector (Governance) Act and IM8 are aligned with the Personal Data Protection Act but have been adapted to the public service context.

Existing laws do not prescribe financial penalties for public agencies that contravene the IM8 rules, said SM Teo, adding that the officers responsible will instead face other measures, including retraining and impact on their performance grade.

 

[True Believer]

The SG Govt loses billions in investments, but still pay themselves millions as a reward! SG is heaven for underperformers because of the lack of accountability.