Speech by Mr Murali Pillai SC, Minister of State, Ministry of Law & Ministry of Transport, at the Association of Chartered Certified Accountants (ACCA) 88th Anniversary Celebration Gala Dinner

03 SEP 2024

Ms Helen Brand, Chief Executive of ACCA

Mr Amos Ng, Global Council Member of ACCA

Mr Wilson Koh, Chair of ACCA Singapore Members Network Panel

Mr Pulkit Abrol, APAC Managing Director of ACCA

Mrs Chia-Tern Huey Min, Chief Executive of ACRA

Mr Teo Ser Luck, President of ISCA

Mr Ng Wai Choong, Chief Executive of IRAS

Distinguished Guests

Ladies and Gentlemen

Introduction

  1. A very good evening to you. It is really my honour to be invited today to attend ACCA’s 88th Anniversary Celebration Gala Dinner.
  1. The Association of Chartered Certified Accountants (or ACCA for short) is a prominent global professional accountancy body with a significant presence in Singapore, and I hear it is about 6,000 strong and growing.
  1. Since establishing the Malaysia-Singapore branch in 1936, ACCA has been instrumental in supporting the Singapore accounting sector. The ACCA Qualification offers a solid foundation for aspiring accountants and is highly regarded by many employers in Singapore. When you heard from Daniel, I really meant it because I never could have predicted that I would make a speech on the 88th anniversary.

(a) ACCA has helped many Singaporeans achieve their professional accounting qualifications.

(b) Today, ACCA is a popular choice for those pursuing a career in accounting. Students recognise the quality and global portability of the ACCA qualification. That is very uniquely ACCA, to be recognised over 180 countries.

(c) Graduates go on to work in key sectors of the economy, advancing their careers in accounting and finance and contributing to the nation’s economic growth.

  1. I had the good fortune of meeting ACCA’s members. I am really impressed by them. One person is of course Mr Amos Ng. He shared that he had a career of more than 40 years. He took the ACCA in the 1980s and that is his only professional qualification. Long story short, he is the Group CFO of a listed company. Not only that, he got himself elected in the Global Council. What he told me was that he had to be globally elected by 250,000 members of ACCA. I would like to know how he managed to get himself so popular to be elected by a big group of 250,000 people! Thanks for flying the Singapore flag. It is appreciated.
  1. Another gentleman I met is Mr Nassir, a gentleman whose company was taking all the photographs for us. I have one in my pocket. Mr. Nassir, just like me, was a former police officer. He said ACCA changed his life. After ACCA, he became an entrepreneur. He also offered business solutions for his clients. He never looked back.
  1. People like Mr Nassir and Mr Ng, are representatives of this family of ACCA members. So, shout out to each and every one of you!
  1. Looking ahead, the accounting profession will continue to be pivotal in Singapore’s economy, especially as we strengthen our position as a leading international financial hub and transition ourselves to a low-carbon economy.

Singapore as a Sustainable Finance Hub

  1. In 2021, Singapore launched the Singapore Green Plan 2030, a national initiative to advance our sustainability goals. This positions us to achieve net zero emissions by 2050. This is by no means a simple task.
  1. Finance plays a critical role in enabling this transition, with McKinsey estimating that over US$3 trillion annually is needed in Asia to reach net-zero by 2050.
  1. The public sector plans to issue up to S$35 billion of green bonds by 2030. However, government efforts alone cannot bridge the funding gap. We need to mobilise more capital from both public and private sources and increase investments in green and transition activities.
  1. Despite significant financing needs, financing for transition and decarbonisation in Singapore remain low.
  1. To address this, the Monetary Authority of Singapore (MAS) launched the Finance for Net Zero (FiNZ) (pronounced as FINS) Action Plan in April 2023. This plan outlines strategies to mobilise financing for Asia’s transition to net-zero, expanding from green finance to transition finance, and it supports Singapore’s vision to be the leading sustainable finance hub for Asia.
  1. FiNZ has several priorities, including:

(a) Encouraging the development and use of innovative market solutions such as blended finance as well as green and sustainability-linked bonds and loans; and

(b) Enhancing definitions and disclosures to address greenwashing concerns through greater transparency.

  1. Singapore has been developing the Financing Asia’s Transition Partnership (or FAST-P for short) with like-minded partners.

(a) It is a blended finance initiative under which we will work in collaboration with public, private and philanthropic sectors globally, including other sovereigns and multi-lateral development banks;

(b) FAST-P aims to mobilise up to US$5 billion to finance green and transition projects in Asia; and

(c) This will grow the pipeline of regional projects that require additional financing and also expertise from the professional services sector. Accounts and financials form the basis of assessments for financiers, while legal contracts protect and build trust amongst stakeholders in developing green and transition projects.

  1. Under FAST-P, MAS has entered into MOUs to set up an Energy Transition Acceleration Finance Partnership, which will support projects including the early phaseout of coal assets and their replacement with renewable energy, as well as a Green Investments Partnership to improve the bankability of green infrastructure projects in Asia.
  1. Improving the consistency, comparability, and reliability of sustainability data and disclosures is also crucial.
  1. First, Singapore will implement mandatory climate-related reporting in accordance with the IFRS Sustainability Disclosure Standards published by the International Sustainability Standards Board (also known as the ISSB Standards), starting with listed companies in FY 2025 and large non-listed companies in FY 2027. Jurisdictions around the world are also looking to adopt or otherwise align with the ISSB standards, which are intended to act as a global framework for investor-focused sustainability reporting.

(a) We will need accountants with the skills and knowledge to understand how climate-related risks and opportunities impact a company’s financials.

(b) Accountants will be instrumental in improving companies’ sustainability data collection and information systems to capture the data necessary for such reporting.

(c) You will also play a key role in communicating these impacts in a fair and balanced manner.

  1. Second, MAS launched the Singapore-Asia Taxonomy for Sustainable Finance at COP28, the first to pioneer a ‘transition’ category. The taxonomy uses a traffic light system to define green and transition activities across eight sectors and will be aligned with global taxonomies for better interoperability.
  1. As trusted business partners, accountants are uniquely positioned to drive sustainable growth and long-term value creation. Your expertise in reporting and assurance is pivotal in ensuring the credibility of both financial and sustainability-related information, thereby building trust with stakeholders. You can play a crucial role in navigating the complex landscape of ESG regulations and investor demands, ensuring accountability and transparency of your firm’s performance towards sustainability.
  1. Your role extends beyond reporting and compliance. By integrating sustainability considerations into financial analysis, you have a holistic view of your organisation, enabling the identification of critical sustainability risks, as well as opportunities. This provides invaluable insights for informed decision-making, ultimately driving positive change.
  1. Support schemes are available to help companies build up capabilities in this area. For example:

(a) The Singapore Economic Development Board and Enterprise Singapore will launch a Sustainability Reporting Grant later this year to assist eligible Singapore-incorporated companies, especially those subject to upcoming mandatory reporting requirements, to produce their first sustainability report prepared in line with the ISSB standards.

(b) Additionally, companies can tap on Workforce Singapore’s Career Conversion Programmes (CCPs) for Accounting Professionals and Sustainability Professionals to develop these new competencies as well. Under the CCPs, companies can receive salary support of up to 6 months for new hires and up to 3 months for existing employees.

Singapore as a Hub for Sustainable Infrastructure

  1. Singapore actively promotes and supports sustainable infrastructure both domestically and regionally.
  1. Domestically, our strategic initiatives include:

(a) Green buildings such as the Green Mark Certification Scheme to ensure sustainable design, construction and operations in buildings; and

(b) Renewable energy integration such as the SolarNova programme which accelerates the deployment of solar panels across government buildings and public housing.

  1. Regionally, we partner with international industry experts to champion sustainable infrastructure. This includes:

(a) The set up of a debt financing platform, Pentagreen Capital, to boost commercial development of sustainable infrastructure projects in Asia, with an initial focus in Southeast Asia. HSBC and Temasek are equity partners in the platform while the Asian Development Bank and Clifford Capital Holdings are strategic partners; and

(b) The formation of the Asia Sustainable Infrastructure Advisory Panel that brings together key industry leaders across various infrastructure sectors to share the latest thinking and promote private sector involvement in sustainable infrastructure across Asia.

  1. Through these efforts, Singapore demonstrates its commitment to environmental stewardship and regional development.
  1. Accountants can support these initiatives by integrating sustainability considerations when evaluating project viability, balancing the need for financial performance with sustainability. I encourage each of you to embrace your role in embedding sustainability into your organisations and contributing to a sustainable future for all.

Singapore’s Commitment to Combatting Money Laundering

  1. As Singapore advances as a financial and business hub, we must remain vigilant against financial crime. Singapore welcomes legitimate wealth, and high standards of regulation are key to our continued success as a trusted wealth management centre.
  1. Financial crime is an ever-evolving threat. Increasing digitalisation has not just opened doors to legitimate growth, but also to risks of syndicated crimes such as scams, and misuse of complex structures to move and conceal illicit funds.
  1. As professional gatekeepers, accountants like yourselves would be familiar with the importance of preventing and combatting money laundering.

(a) Last year’s major money laundering case only underscores the importance of guarding against such crimes.

(b) Combatting such financial crimes is not a new requirement. Accountants involved in certain designated activities are already subjected to anti-money laundering requirements, such as conducting customer due diligence and reporting suspicious transactions.

  1. Tackling money laundering requires a whole-of-society effort. We have implemented our anti-money laundering (or AML) rules using a risk-based approach to respond appropriately to risks and strengthened our AML regime across the Government, through public-private partnerships and international collaboration.

(a) There is close partnership between the public and private sectors. For instance, risk typologies and other information are shared between the authorities and the private sector through Singapore’s AML and Countering the Financing of Terrorism Industry Partnership.

(b) Internationally, Singapore is an active member of the Financial Action Task Force or FATF for short. In fact, we just recently handed Singapore’s FATF Presidency, occupied by Mr T. Raja Kumar, to Mexico in July 2024. The FATF is the global standards setter on AML, countering the financing of terrorism and countering proliferation financing rules. Through the FATF and other forums such as INTERPOL and the Egmont Group of Financial Intelligence Units, Singapore plays an active role to enhance cross-border collaboration.

  1. In end-2023, the Singapore Government established an Inter-Ministerial Committee, headed by Minister Indranee Rajah, to further strengthen our AML regime. The Committee will share its full findings and recommendations in the fourth quarter of this year.
  1. Singapore continuously reviews and takes risk-proportionate steps to enhance its financial system safeguards so as to remain a safe and trusted financial centre.
  1. Accountants serve as the first line of defence against financial crimes such as money laundering.

(a) As accountants, your work brings you in close proximity to the world of business, which provides you with a keen business acumen and enables you to quickly pick up red flags in a business transaction.

(b) Even more importantly, you possess a strong sense of professionalism, ethics and integrity. If you suspect that something is amiss, you must ask more questions and if necessary, file a suspicious transaction report to the authorities.

(c) All of us must play our part to stay vigilant against the threat of financial crimes, to ensure that Singapore continues to be a trusted place to do business.

Conclusion: Safeguarding a Sustainable Future Together

  1. On this momentous occasion, I want to acknowledge the significant contributions of accounting professionals to Singapore’s robust economy.
  1. Your dedication to financial integrity has been instrumental to our success. Not only that, I noted just now, that for ACCA, you have a very robust CSR contribution record as well. I met just now friends from Junior Achievement Singapore, who shared that many of their active members are drawn from ACCA Singapore. And what do they do? They help instil in our primary school children, financial literacy. This is really heartwarming.
  1. Singapore’s journey to advance key growth areas relies on collaborative efforts, and accounting professionals are central to this success. I look forward to your continued support.
  1. Congratulations once again on your 88th anniversary and I wish you an enjoyable celebration for the rest of the evening.
  1. Thank you very much.

Last updated on 3 September 2024