Speech by Minister for Law, Mr K Shanmugam, at the NUS Eminent Business Alumni Awards 2012

7 Nov 2012 Posted in Speeches

Professor Bernard Yeung, Dean, NUS Business School,
Mr Peter Seah, Chairman, Awards Committee,
Mr Simon Phua, President, NUS Business School Alumni Association,
Distinguished Alumni and Guests of NUS Business School,
Ladies and Gentlemen,

1. Good Evening. Thank you for inviting me here this evening to be with you.

2. I’m happy to be here at your Business Alumni Awards to celebrate your eminent alumni.

3. This award, as you heard from Peter, recognises graduates of the school who have excelled in their fields of expertise. There are 18 nominees, all worthy candidates who have made important contributions in various sectors..

4. Some of tonight’s award winners, I think you may know them – Bobby Chin (Chairman of Singapore Totalisator Board), Lim How Teck (Chairman of Certis Cisco Security) and Yam Ah Mee (Chief Executive Director, PA). Their achievements and hard work have contributed to Singapore’s development.

5. I see tonight’s award recipients and alumni present – they have distinguished themselves in various industries and fields. Many have achieved in fields that have little to do with their chosen field of education in university. The best education is one that goes beyond equipping students with narrow and technical skills. The best education is one that focuses on strengthening the quality of the mind with a conceptual understanding, with an inter-disciplinary approach that instils critical thinking, strong communication, reasoning and decision making skills.

6. In this context, we have to recognise the contributions NUS Business School has made in constantly upgrading and refining its curricula for its students to meet the challenges of this ever-changing global economy. If you look at the rankings, in the Financial Times Global MBA Rankings 2012, NUS was ranked 23rd globally, 9th in global mobility and of course, the highest-ranked Singapore University. In the latest Forbes rankings for two-year MBA programmes, NUS Business School was rated the top school in Singapore and Asia, and 4th among business schools outside the United States, the first time a Singapore business school has made this list. The quality of the business school is self-evident, and the quality of our educational institutions is the cornerstone of our success.

7. I strongly encourage all young graduates and the close to 30,000 alumni of the NUS Business School to take inspiration from tonight’s award recipients. Come forward, be the industry leaders of the future to advance the progress of Singapore and yourselves, and give back to the community.

8. Even as we honour eminent alumni, I would like to share a broader thought.

9. The last five years have not been the greatest for markets, for businesses, for business reputations.

10. All of these have taken a hit.

11. In general, the world over, many questions have been asked on free markets, on businesses. The world in general, governments in general are moving left. This I think has been an unavoidable reaction to the market abuses we have seen. And the widening income gap in many countries, has also raised some deep questions, on how societies need to be structured.

12. Apart from profitability, questions have been raised on moral standards of markets; unfettered excesses at the expense of society; and words that have become part of our standard usage: Sub-prime, CDOs, Lehman brothers, Libor rigging.

13. The popularity of books like Michael Sandel’s “What money can’t buy” – because not everything in life has a price, can be sold for a price.

14. Overseeing the economies and the markets, many governments and regulators have failed in their role. Thankfully, in Singapore we have avoided that, with the regulators having been prudent and vigilant, on the whole.

15. The role of the government in mitigating market failures has not changed. It should not change. Where there is no level playing field, or where the few seek to write the rules in their favour, to the disadvantage of the majority, the government has the responsibility to intervene effectively and make sure that does not happen – it has to reshuffle the cards and level the playing field. And the government has to make sure that the regulations work. The result of the market failures and the excesses the world over, has understandably made many people question the market economy as a whole.

16. In this age of active citizen governance and public-private sector partnerships, particularly with the huge resources that private enterprises and citizens have amassed, monitoring and correcting market failures and ensuring corporate social responsibility are now being shared by individuals. Governments have to continue to intervene where there are clear market failures and where services do not get to the right social strata. In addition, individuals in businesses have the moral obligations to ensure that our society and economy continue to grow in a responsible way.

17. Corporate social responsibility is no longer only about how you spend your money. It is no longer only about donating millions to charity. It is also about how you make your money as a responsible member of our global community.

18. Questions that need to be asked:
    • Did you treat your staff and shareholders fairly when you make your money?
    • Did you treat the environment and the less fortunate when you make your money?
    • Did you give your customers value and the necessary safety when you sell them your products and services?
    • Did you help - through taxes and donations - redistribute wealth and channel resources to public services when you make your money?
    • Did you contribute to the education and moral fibre of the society as you sold your products?

19. These questions will be asked. They are going to be questions that keep coming up. Every society, every business community, will have to deal with these questions in order for us to have a good social compact moving forward. We, the Singapore government, believe absolutely in the free market system, that the free market system works in a way that benefits society as a whole. I think these questions, and the whole question on social ethics, economic ethics, business ethics, would be issues that I’m sure businesses will have to think about.

20. Thank you.

Last updated on 22 Nov 2012