gathering of
mindsannual report 2009 highlights of key statistics
SIM Group SIM University The Singapore Institute of Management (SIM) is a hub where people of diverse backgrounds, talents, A year-on-year growth of 12% in revenue to $209m An enrolment of about 11,000 students and perspectives gather, resulting in a powerful pool of knowledge and ideas. Enabling and supporting
An alumni of about 10,500 graduates* this gathering of minds are the four business entities of the Group, each with its own unique charter SIM Membership *including OUUK and BNU graduates and role, yet collectively, they offer our executives, students and members a multitude of pathways and A total of 32,316 individual members More than 40 programmes offered a rich resource of experiences and wisdom.
A total of 889 corporate members SIM Global Education
SIM Professional Development An enrolment of 19,500 students
More than 11,000 professionals trained An alumni of 84,000 graduates through 600 seminars, workshops, in-company More than 50 programmes offered projects and conferences
01 where peoplecome together
from all walks of life opportunitiesarise
relationships blossom prepare to chart
your life contents SIMvision, mission & core values
SIM Vision, Mission & Core Values 09 Our Vision SIM Profile 10 To be the Centre of Leadership and Management Excellence, and the Embodiment of Lifelong Learning SIM Campuses 11 SIM Organisational Chart 12 Our Mission SIM Milestones 13 • Spearhead management thought leadership Message from Chairman 14 • Be the preferred strategic partner of corporations in maximising return on human capital Message from Management 18 • Be the choice provider of continuing education to individuals SIM Governing Council 22 • Transform SIM into a regional brand SIM Membership 25 SIM University 33 Our Core Values UniSIM Board of Trustees 34 • Trust and Respect for the Individual SIM Global Education 43 • Teamwork Singapore Institute of Management Pte Ltd Board of Directors 44 • Open and Timely Communication SIM Professional Development 53 • Performance Excellence • Spirit of Innovative Adventure SIM Support Services 59 Staff Directory 64 Corporate Information 66
08 09 SIMprofile SIMcampuses
01 02 03 04
About the SIM Group SIM University (UniSIM) SIM Global Education SIM Professional Development The Singapore Institute of The only privately-funded Singapore Students can choose from a wide More than 11,000 professionals Management (SIM) is the largest and university, UniSIM is dedicated to range of high-quality overseas benefit annually from the vast most comprehensive provider of the education and lifelong learning degree programmes made available selection of short, executive training higher education and professional of working professionals and adult through SIM’s partnership with programmes, seminars, workshops 1) SIM HQ at Clementi computer laboratories, the Centre also serves as comprehensive lifestyle campus combining training in Singapore. It was founded learners. Since 2005, UniSIM has established international universities and conferences offered by SIM The SIM Headquarters (SIM HQ) along Clementi the administration office for SIM University. residential, sporting and recreational facilities for in 1964 as a not-for-profit been awarded IPC status and is and institutions from the United Professional Development. Its Road is SIM’s main and largest campus with a both local and foreign students. The 4.5 hectare membership organisation under the approved by the Ministry of Kingdom, United States, Australia customised in-company training Economic Development Board and Education (MOE) to issue recognised and Switzerland. Most of the helps companies optimise capacity for 12,000 students. Facilities include over 3) SIM Management House campus provides accommodation for up to 428 today, boasts over 33,000 corporate local degrees. Students can receive students are full-time students but effectiveness in various fields of 90 lecture theatres, tutorial and seminar rooms, as Set in the tranquil residential estate of Namly Avenue, students and has tennis and futsal courts, gym, and individual members. Its up to 40% subsidy from MOE on SIM Global Education also offers management and human resource well as computer laboratories, a multi-purpose hall the SIM Management House has 20 lecture theatres outdoor yoga pad and fitness area, as well as a extensive range of membership course fees. UniSIM promotes part-time programmes that cater to development. that seats 1,600 and a management library. The Tay and seminar rooms, computer laboratories, a student’s lounge and dance studio. Themed short- programmes, activities and lifelong learning through a flexible working adults. Its enrolment stands stay studio apartments are also available for parents resources provide an important and practice-focused learning at 19,500, with about 3,000 foreign Eng Soon Library is Singapore's largest and most members’ lounge, business centre and bookshop that nexus for SIM students and approach. It offers more than 40 students. comprehensive management library. Also on campus cater to membership activities, executive development and visiting faculty. members to network and learn. The academic programmes across multi- is a student lounge which provides a focal point for courses and post-graduate degree programmes. It is SIM Group accomplishes its mission disciplines and its current enrolment students’ social interaction and recreation. also equipped with a management library which Combined with the SIM campuses at Clementi Road of education and lifelong learning is close to 11,000 students. contains one of the most complete collections of and Namly Avenue, SIM now has the biggest and through three distinct educational arms, each catering to specific 2) SIM Clementi Centre management-related publications in Singapore. most comprehensive campus for a private tertiary market segment of learners. The SIM Clementi Centre, adjacent to SIM HQ, is institution in Singapore. an additional facility to cater to SIM University’s 4) SIM Global Education Campus@Ulu Pandan growing student population. Housing a total of 20 Opened in September 2008, the SIM Global lecture theatres and tutorial rooms, and two Education Campus@Ulu Pandan is the most
10 11 organisationalSIM chart SIMmilestones SIM Governing Council Nominating Committee Audit Committee Remuneration Committee Investment Committee SIM Society Membership Committee
Board of Trustees Board of Directors
SIM University Singapore Institute of Group Corporate Services January June November Management Pte Ltd • UniSIM signs MOU with Universiti Malaya to • SIM launches the SIM Management Monitor – • UniSIM signs MOU with Singapore Centre for offer Singapore’s first Bachelor of Arts in Malay Singapore’s first comprehensive management Chinese Language to offer Bachelor of Chinese School of Arts & Social Sciences SIM Global Education Membership Services Corporate Communications Language and Literature programme survey Education (Honours) programme School of Business Estates & Facilities SIM Professional • UniSIM signs MOU with MAJ Aviation to offer School of Human Development & Social Services Development Finance & Administration the first local Flight Discovery Course under the School of Science & Technology Human Resources February July Bachelor of Engineering (Honours) in Aerospace Infocomm & Technology Services • UniSIM signs MOU with the Singapore Armed • Singapore Institute of Management Pte Ltd is Forces to establish strategic partnership on top Fastest Growing 50 (FG50) company in Systems continuing education Singapore • SIM-The University of Birmingham launch five December corporate governance March management undergraduate degree • SIM takes up three year title sponsorship of • SIM Global Education wins ‘Best International programmes Singapore Open Windsurfing Championship Marketing Effort by a Private Educational • SIM GE and UniSIM voted top choices in private As a not-for-profit organisation under the purview of strategic direction of the Group, acts as a watchdog In addition to the above, internal and external audits Institution’ at annual STB Education Awards for August education in JobsCentral survey the Ministry of Education, SIM enforces stringent on all financial, remuneration and audit matters and are also conducted to monitor compliance and suggest 2nd year running • UniSIM in partnership with SEED Institute offers • SIM GE voted ‘Top Private School’ in AsiaOne’s corporate governance guidelines to ensure that legal closely monitors compliance with control measures. improvements. The notion of corporate governance Singapore’s first local degree in early childhood ‘People’s Choice Awards’ regulatory requirements are consistent with the law, Similarly, the SIM University and Singapore Institute extends beyond management with the implementation April education • SIM PD wins in eight categories of ‘HR Vendors transparent and enforceable. of Management Pte Ltd are also governed by a Board of a Whistle Blowing Policy across the Institute in • UniSIM launches Singapore’s first Basic of the Year 2009’ Awards of Trustees and Directors respectively, members of 2008. With this, staff are able to proactively contribute Principles and Practice of Traditional Chinese October Assuming the overall governance of the SIM group is whom are appointed independent directors. towards helping SIM achieve a greater level of public Medicine course in English • SIM unveils Campus Development Master Plan the Governing Council. Comprising of independent confidence in governance issues. and Phase 1 of development at Topping Up elected members, the Council is responsible for the Ceremony officiated by President S R Nathan
12 13 message from Indeed, through the many pathways to learning provided by chairman the various entities, SIM is a rich gathering of minds, a vibrant hub for the sharing of experiences, ideas and perspectives.
The year 2009 will be remembered for the economic In terms of enrolment, the SIM University recorded Changes in the Private Education Landscape tsunami which wiped out banks and even brought a 12% on-year growth while SIM Global Education While the private education industry was fairly resilient countries to the brink of bankruptcy. recorded an 8% increase. In tandem with higher in 2009, the reputation of the industry as a whole student enrolment, we saw an almost 8% growth in has been tarnished with widespread negative publicity Despite this economic volatility, which did not spare total membership, bringing it to a total of 33,205. regarding some schools leaving students in the lurch Singapore, the private tertiary education sector with unscrupulous practices and bogus degrees. remained relatively stable, although there was a drop Building on Our Strengths in the number of foreign students coming here. As a Group comprising diverse but important parts, The high-profile scandal involving a private school SIM has a unique business model that enables the and the suspension of 13 others thereafter by I am pleased to report that for FY2009, SIM as a offering of a multitude of Continuing Education and CaseTrust are cases in point. The Ministry of Group achieved a year-on-year growth of 12% in Training (CET) choices for both school leavers and Education passed a private education bill in revenue to $209m while maintaining a healthy surplus working professionals, regardless of their September, formalising the set up of a Council for of $50m compared with $24m for FY2008. This was backgrounds, age, interests or goals. Private Education (CPE) to weed out fraudulent possible thanks to the hard work and support of all players and protect the interests of students. our staff and the proactive and prudent management Indeed, through the many pathways to learning of our businesses and resources. provided by the various entities, SIM is a rich gathering of minds, a vibrant hub for the sharing of experiences, ideas and perspectives.
Richard Y M Eu Chairman SIM Governing Council
15 During the year, we embarked on a five-year, $300m Campus SIM will continue to play an important role in supporting the Development Master Plan to more than double our existing government’s strategic plan to further develop Singapore’s campus at Clementi. economy and build an open, diverse and vibrant global hub.
Under the new regulatory framework launched in During the year, we embarked on a five-year, $300m In the immediate future, the educational landscape SIM will continue to play an important role in To this end we are in the process of a strategic December, private educational institutions will have Campus Development Master Plan to more than will take a different shape with the aforementioned supporting the government’s strategic plan to further review that will re-examine our role in the education to align their business practices, internal processes double our existing campus at Clementi. The new new regulatory framework for the private education develop Singapore’s economy and build an open, landscape of Singapore. We hope that the review and quality standards to new and stringent development will better position us as a modern industry as well as the opening in 2011 of Singapore’s diverse and vibrant global hub. will lead to a plan to reaffirm our vision as the leading requirements in order to operate as registered and dynamic institution for the 21st century and fourth public-funded university, the Singapore institute of management in Singapore and the region. institutions under the Enhanced Registration further consolidate our role as the premier institute University of Technology and Design. Further, the The Economic Strategies Committee has put Framework (ERF). As a key player in the market, SIM for continuing education and lifelong learning, not Singapore Institute of Technology will provide more together an aspirational blueprint to take Singapore I shall be stepping down as Chairman of the welcomes and supports this move to boost Singapore’s just in Singapore but also in the region. upgrading pathways for diploma holders. to the next phase of growth in the new world Governing Council at the AGM in May 2010 and I standing and viability as an educational hub. economy through a qualitative transformation of our should like to thank each and every member of our Phase 1 of the building is expected to be completed As the leading player in the private education industry, economy. To do this, the Committee calls for a focus council, boards, management and staff, for their Our commitment to the more stringent assessment by the end of 2010. Our members and students will we look forward to working closely with the relevant on upgrading the skills of all levels in the workforce unwavering dedication and support. It has been my under the ERF as well as the voluntary EduTrust look forward to making use of the new infrastructure authorities to ensure that the checks and balances so as to increase productivity, plus using innovation singular privilege and pleasure to have served Certification Scheme is testament of our confidence and facilities equipped to enhance learning in this of the new regulatory framework ultimately work to to create greater value jobs and businesses. alongside such a great team. in the business integrity, academic quality and student new digital age. the benefit of students without stifling the healthy welfare we have built on over the past 45 years. development of the industry. With more competition Our challenge will be to not only do what we currently On the Cusp of an Exciting New Journey on the playing field, the pressure for us to continually do better. We shall need to redefine our strategy and Investing in Our Future The start of the second decade of the 21st Century innovate our programmes and services to stay scope to seek out various ways to support new growth As a professional institution committed to the long- heralds an exciting new journey ahead. The new relevant will be greater than ever. areas in the economy while maintaining our mission. term manpower needs of Singapore, we set our decade will no doubt see greater opportunities for sights beyond short term gains and took a bold growth in the world around us than in the decade move to invest in the future despite the uncertain past. With that, the challenges will also be greater. economic outlook.
16 17 message from Our programmes continued to attract strong demand because management of their quality and recognition.
The unprecedented global economic crisis that Responding to the Economic Downturn Offering a Unique Value Proposition characterised 2009, like all tough times, was a time Supporting the government’s call to step up continual As a Group, SIM offers students and members a of reckoning for businesses and organisations. At upgrading and re-skilling during the lull time, we very unique value proposition - an ecosystem of SIM, we were mindful of the challenges the crisis responded with a number of initiatives. Among these diverse entities, each catering to the needs of a would bring; at the same time we were also watchful was a $1.6m SIM Skills Training and Rebate (STAR) different market segment, but together, offering a of the opportunities it might offer. scheme to encourage companies and individuals to comprehensive range of Pre-employment Training take up continuing education and training (CET) at (PET) and CET pathways for school leavers, working With this cautious but expectant attitude, we were SIM. adults and organisations. able to forge ahead with our plans and achieved reasonable growth across all entities, holding fast Financial aid to students was also stepped up. Our programmes continued to attract strong demand to our mission of developing Singapore’s most UniSIM gave out 61 study awards while SIM GE because of their quality and recognition. UniSIM valuable asset, her people, and continuing to be awarded 58 bursaries to needy students. These students are assured of qualifications recognised guided by our commitment to deliver study awards and bursaries supplemented existing by the Ministry of Education (MOE), and practical uncompromising quality, relevance and service. financial assistance schemes such as interest-free and relevant training that enhances their employability instalment plans for tuition fees. and career development. SIM GE students are Our Individual Membership increased from 30,000 assured of the same academic rigour and to almost 33,000, recording a 10% increase. Student We offered programmes such as the UniSIM’s Social accreditation that their foreign counterparts enjoy enrolment at SIM University (UniSIM) grew by 12% Work Degree and SIM GE’s Diploma in Service when doing their programmes in the home countries to reach almost 11,000 while SIM Global Education Leadership, for funding under the Government’s Skills of the partner universities. (SIM GE) recorded an 8% growth to 19,500 students. Programme for Upgrading and Resilience (SPUR) This brings the total number of students studying scheme to help companies strengthen business Commitment to our Quality Promise at SIM to almost 31,000, making us the largest competitiveness through the upgrading of workers. Even as we grow, we remain committed to our quality private tertiary institution in Singapore. promise to our students and members. We continue to conduct reviews through independent internal and external audits by qualified professionals. Professor Cheong Hee Kiat Ronald Tan Lee Kwok Cheong President Executive Director Chief Executive Officer SIM University Singapore Institute of Management Singapore Institute of Management Pte Ltd
19 SIM undertook and published Singapore’s first comprehensive We must offer unique choices of programmes, ensuring not survey to identify key management trends and challenges faced just their quality but a pedagogy that engages learners of the by Singapore managers today. cyber age.
We are also expanding and upgrading our example, featured Dr Ram Charan, world-renowned globally. The funding support by SPRING Singapore UniSIM’s focus for 2009 was to actively engage industry The differentiating education that SIM GE offers is for private education providers, the challenge for us infrastructure and facilities to adequately support business management guru on ‘New Rules for for SMEs’ participation under its Business Leaders in the offering of its programmes. We collaborated with its holistic approach to nurturing all-rounded is to ensure that we continue to have a sound system our growth. In October, we announced a Campus Thriving in Difficult Times’. Initiative Scheme was a strong endorsement of the government organisations like the Singapore Armed individuals. More opportunities were provided for for reviewing the relevance, and quality of our Development Master Plan to double our current relevance and value of the JOCE programme for Forces, industry players like Singapore Logistics students to develop both hard and soft skills through programmes and processes. campus size at Clementi Road. Slated to complete SIM undertook and published Singapore’s first corporate leaders and entrepreneurs. Association and the NTUC SEED Institute, and leading the introduction of study abroad programmes, a in two phases by 2014, the new extended campus comprehensive survey to identify key management universities like Nanjing University. Such collaborations wider range of extra-curricula activities and the With new players such as the Singapore University will add to the holistic learning experience of our trends and challenges faced by Singapore managers The Job of the Manager (JOMAN) programme, a are central to UniSIM’s philosophy of offering ‘learn specially designed All-Rounder Student Development for Technology and Design and the Singapore students and further stamps SIM as the largest today. The annual survey will enable us to put our suite of training in general management development, today, apply tomorrow’ knowledge and skills. Programme. Through supporting community Institute of Technology and the offering of more private education institution in Singapore, both in finger on the pulse of management and gather was also refreshed to make it more relevant to the projects, we also inculcated in our students a heart choices, the educational landscape will change yet terms of student population and campus size. valuable insights to help enhance the standards and evolving role of the manager in a fast changing With an alumni of about 10,500, engaging this rich for others and the desire to contribute to society. again. To reach the next level of excellence, meeting professionalism of management among companies business environment. resource pool of graduates in a constructive the expectations of our students is no longer enough. Membership Services and individuals. symbiotic relationship with the university remains With its philosophy of holistic education with a global We must offer unique choices of programmes, Offering value and relevance SIM University an important priority. A series of learning and sharing perspective and an unwavering dedication to quality, ensuring not just their quality but a pedagogy that activities as well as social networking sessions were Membership is the linchpin of the SIM ecosystem. SIM Professional Development Engaging industry for greater relevance SIM GE continued to establish itself as the leader engages learners of the cyber age. Equally important organised to achieve this during the year. The SIM Membership Services continues to organise Leading executive training With barely five years of history under its belt, UniSIM on the private educational landscape. To raise are the relationships we build with our students and a range of activities and out-of-classroom learning Despite a slight dip in participation rate, SIM has made great strides in serving the higher education standards in the industry, the MOE has pushed alumni, as well as the university and industry partners opportunities, all of which make up for a rich resource Professional Development (SIM PD) continued to and lifelong learning needs of working adults. Not only SIM Global Education ahead with an enhanced registration framework and we work with. pool for networking and for the sharing of knowledge be a preferred training partner, training about 11,000 have we grown our suite of programmes offered by Raising the bar in private education EduTrust accreditation for all private educators. This and best practices. executives through 400 public seminars and our four schools, we have ensured that these In 2009, SIM GE undertook a partnership with yet will bode well for the industry and for Singapore’s We must continue to develop and sharpen the conferences, and 200 customised in-company programmes offer differentiated and unique advantages another prestigious university – the University of aspiration to be an Education Hub. We welcome knowledge and skills of our staff and encourage During the year, SIM Membership continued to bring programmes across a wide spectrum of disciplines in equipping executives with skills that are immediately Birmingham – to offer its undergraduate programmes this long-awaited move and see it as a good greater innovativeness so as to keep ahead of and organisational levels. services that are of relevance and value. Besides relevant to the work place. Our dedication to quality in business management and international business. opportunity to further improve our quality and service changes. With the strong leadership of our council the STAR scheme designed to help SIM members and relevance has earned recognition, from employees It was also a year of achievements for SIM GE’s level. and boards, and the commitment and ingenuity of SIM PD continued to build on the strengths of its ride the downturn and benefit from training and and employers alike, of the UniSIM degree. Such a students on academic, sporting and artistic fronts. all our staff, we stand ready to scale greater heights. signature programmes such as the Job of the Chief development rebates, we brought prominent strong standing has also made us an attractive partner We continued to set new records in the number of Forging Ahead with Confidence Executive (JOCE) as well as Disney Keys to for industry collaborations. graduates awarded Latin Honours in the University speakers and domain experts to speak on issues Looking ahead, we see exciting times of challenges Excellence. The former ran its 29th session in 2009 at Buffalo and First Class Honours in the University prevalent during the economic downturn. The and opportunities. With the MOE’s new guidelines hallmark SIM Annual Management Lecture, for and has an alumni of over 1,000 C-suite executives of London programmes.
20 21 SIMgoverning council
01 02 03 04 09 10 Honorary Chairmen Dr Richard K M Eu Mr Tan Chok Kian
Nominating Committee Mr Richard Y M Eu (Chairman) Mr Gerard Ee 05 06 07 08 11 12 Mr R Dhinakaran Mr Raymond Kwok Professor Cham Tao Soon
Group Audit Committee Mr Gerard Ee (Chairman) Mr John Lim Mr Han Vo-Ta Mr Victor Liew Cheng San 01) Mr Richard Y M Eu 05) Mr Noel Hon 09) Dr Rosemary Tan Chairman, SIM Governing Council Chairman, e-Cop Pte Ltd CEO, Veredus Laboratories Pte Ltd Group Remuneration Committee Group CEO, Eu Yan Sang International Ltd Mr Tan Soo Jin (Chairman) 06) Mr John Lim 10) Mr Tan Soo Jin Professor Bernard Tan 02) Mr Gerard Ee Deputy Chairman, NTUC FairPrice Co-operative Ltd Director, Gattie-Tan Soo Jin Management Consultants Pte Ltd Mr Noel Hon Vice-Chairman, SIM Governing Council Chairman, National Kidney Foundation 07) Ms Penny Low 11) Professor Cham Tao Soon Investment Committee Chairman, PCF Punggol North Special Advisor to SIM Group Mr Raymond Kwok (Chairman) 03) Mr R Dhinakaran Chairman, SIM University Board of Trustees Mr Noel Hon Managing Director, Jay Gee Group of Companies 08) Professor Bernard Tan Chancellor, SIM University Mr R Dhinakaran Professor of Physics, National University of Singapore President Emeritus, Nanyang Technological University 04) Mr Raymond Kwok Membership Committee Chairman, Kwok Group LLP 12) Mr Ronald Tan Dr Rosemary Tan (Chairman) Ex-Officio, SIM Governing Council Professor Bernard Tan Executive Director, Singapore Institute of Management Ms Penny Low
22 23 SIMmembership
Meet your inspiration, feel the connection. When a diversity of minds converge, a powerful force surges. Transforming the way you think, motivating you and impacting you in a way you never knew before. More than just networking, the SIM Membership brings together world’s premier industry leaders for education, knowledge sharing and solution exchange.
25 Renowned business coach Dr Ram Charan, speaking Dr Peter Steidl, Professor at Curtin University, at SIM’s SIM Executive Director Mr Ronald Tan addressing the Winners and participants of the 37th SIM National Management Competition Members practising the meridian acupressure massage at the SIM Annual Management Lecture CEO Breakfast Briefing audience at the SIM Interest Group Convention on one another at Members' Night
With an 8% increase in its total membership to over help them ride the downturn and benefit from training • 28th SIM Annual Management Lecture by A new membership initiative, the SIM Management Interest Group Convention (IGC) The SIM Library 32,000 individual and almost 900 corporate members and development. Members were given a 50% renowned business coach Dr Ram Charan: Monitor, was launched to provide a comprehensive Our 12 SIM Interest Groups presented a wide array The SIM Library continues to serve as a key resource from a broad spectrum of industries, SIM rebate of their membership fees to attend ‘Leadership in the Raging Economic Cyclone: survey of key management trends and challenges of talks, enabling the sharing of experiences across centre for our students and members. Key projects Membership offers a rich resource for business membership events and executive training from New Rules for Thriving in Difficult Times’ facing the Singapore manager. The survey findings disciplines, an important factor that determines undertaken to enhance the services provided by the networking and contacts, for collaborations and the June to December. This initiative was well-received, • CEO Breakfast Briefing by Dr Peter Steidl: were well publicised over major print and broadcast success in today’s highly competitive and connected library included the enhancement of our e-resources, sharing of knowledge and best practices. Over 7,500 for example more than 80% of members used the ‘Beyond Survival: Key Strategies for Managing media. The first such survey in Singapore, it covered business environment. a revamp of the library website, the installation of members, from senior management to rank and file, STAR rebates for the SIM Interest Group Convention. Through Recession’ some 750 respondents from CEOs to middle gaming stations and the production of an orientation participated in some 200 membership and interest On top of this rebate, a further 20% discount was • Investment Talk by Propnex CEO, Mohamed managers. After the media blitz, 23 organisations Members’ Night video to help users make greater use of the library. group activities such as company visits, forums, extended for executive training programmes. This Ismail: ‘Savvy Property Investment: Making the requested for the findings. This initiative has further Our members also had the opportunity to take time talks, workshops and lifestyle events in 2009. financial aid will extend to 2010 where all members Recession Work Smart for YOU!’ raised the profile of SIM as the ‘voice’ of away from the stresses of work by unwinding at our A donation by Dr Tham Seong Chee of his private will be given a 50% discount on their membership management. ever popular Members’ Nights. Combining collection greatly augmented the library’s Malay Responding to Members’ Needs in fees for the year. In addition to these, we also organised events that networking, learning and fun, members learned from language and linguistics collection to support SIM a Recession promoted a positive outlook such as ‘Building Your Other Services and Activities a wide range of topics, including lifestyle topics on University’s Malay language and literature Responding to members’ needs in the dire economic Success with Positive Attitudes’ by Jason Wee and programmes. In the economic turmoil of 2009, the main thrust National Management Competition (NMC) birth characters (Bazi), making healthy salads, de- situation, we had focused on programmes that ‘In Search of Happiness’ by MediaCorp celebrity, driving our membership was creating greater value A realistic online game that pits participants’ stressing with meridian acupressure massage, as addressed the challenges and opportunities of the Bryan Wong. for members and responding to their needs. To show entrepreneurial and business acumen, the 37th SIM well as wine appreciation. recession. This was accomplished by featuring that we care for our members, a special $1.6m NMC saw an exciting competition among 80 teams pertinent speakers who spoke on practical recession- assistance initiative, the STAR (Skills Training And comprising students and working adults. The winners related topics at events such as: Rebates) Scheme was launched in May 2009 to went on to compete regionally at the Asian Management Game 2009 held in Chennai, India.
26 27 As we look forward to a more positive economic climate in 2010, we will continue to create more value and offer more innovative programmes and services.
membership statistics High member satisfaction SIM Membership as a ‘valued innovator’ will continue Despite the recession, attendance at our membership to be our overriding theme. We are enhancing our SIM Honorary Fellows events was still favourable; participation at the IGC membership profiling and will engage with more Dr Richard Eu recorded a 9% increase over 2008. Feedback from students and graduands by working with both Dr Michael Fam Grand Total of 33,205 Members members on our programmes and services during student leaders and member advocates. In addition, Mr Herman Hochstadt the year was positive and overall customer more loyalty programmes are being lined up to Mr P Y Hwang satisfaction for our activities was consistently rated reward loyal members whose participation bring an Comprising 32,316 Individual Members and 889 Corporate Members Dr Lee Seng Gee high. immense amount of talent, resource and experience for the benefit of SIM and its membership. Mr Lim Kee Ming Mr Ngiam Tong Dow A Brighter Year Ahead Mr J Y Pillay Individual Members’ Profile Corporate Members’ Profile As we look forward to a more positive economic Mr Shaw Vee Meng climate in 2010, we will continue to create more Mr Wee Cho Yaw 12 Honorary Members 606 Members from Companies with 1-100 Employees value and offer more innovative programmes and Mr John Yip services. We have enjoyed several years of success Professor You Poh Seng – robust membership growth, a consistent increase 44 Silver (Retired) Members 181 Members from Companies with 101-500 Employees in event participation and attendance, as well as strategic partnerships. We will continue to build on 2,053 Ordinary Members 51 Members from Companies with 501-1,000 Employees this strong foundation to meet members’ needs in a relevant and timely way. 5,265 Associate Members 51 Members from Companies with over 1,000 Employees
24,942 Student Members
28 29 interest group profiles Number of Number of Group President Members Activities
Business Management Group (BMG) Mr Liew Tze Peen 46 6 China Interest Group (CIG) Mr Richard Ang K L 60 5 Principal Trainer/Consultant Quantum Training Resources
Human Resource Interest Group (HURIG) Ms Lucy Low 184 8 HR Manager 3M Singapore Woodlands Pte Ltd
Information Technology Group (ITG) Mr Allen Lee 65 6 Director, Professional Services Genesis Networks Pte Ltd “I chose to become a member of SIM
Innovation and Quality Management Group (IQMG) Mr Daniel Foo 46 7 because it helps me further my Regional TQM & HSE Manager FMC Technologies Singapore Pte Ltd education, and keep abreast of the Marketing Executives Group (MEG) Ms Sylvia Oo 86 8 Senior Marketing Director latest in management training and ERA Realty Network Pte Ltd development and the economic Organisation Development Group (ODG) Dr Lim Peng Soon 68 9 President environment.” Learning & Performance Systems
SIM I Toastmasters Club (TMI) Ms Priscilla Tan 68 33* Allen Lee Corporate Secretary Big Orange Self Storage Singapore Pte Ltd SIM member Managing Director, Genesis Networks Pte Ltd SIM II Toastmasters Club (TMII) Mr Gabriel Leong 31 35* Group Director Dennis Wee Realty Pte Ltd
SIM Mandarin Toastmasters Club (MTM) Mr Kenny Chang 40 15* Sales Manager TDF Food Pte Ltd
Strategic Management Group (SMG) Mr Chia Choon Peng 76 3 The Entrepreneurs Group (TEG) Mr Chua Kim Lian 94 7 Managing Director C Design Engineers Pte Ltd Total 864 142
*Inclusive of chapter meetings 30 SIMuniversity
UniSIM’s calling is one that holds great significance for adult learners in Singapore; one that helps enhance their education and career opportunities, realise personal aspirations and better lives. It’s an important mission to help Singaporeans remain relevant so that the country continues to be viable and economically competent in the dynamic global environment.
33 UniSIM board of trustees
01 02 03 08 09 10 11 Finance & Audit Committee Mr Han Vo-Ta (Chairman) Mr Chan Heng Kee Dr N Varaprasad Professor Cheong Hee Kiat
Establishment Committee 04 05 06 07 12 13 14 15 Professor Cham Tao Soon (Chairman) Mr Ong Boon Hwee Mr Ronald Tan Professor Aline Wong Professor Cheong Hee Kiat
01) Professor Cham Tao Soon 04) Mr Han Vo-Ta 08) Professor Aline Wong 13) Mr Jeffrey Siow Chairman, Board of Trustees Managing Director, Vota Management Pte Ltd Academic Advisor, SIM University Deputy Director, Higher Education Division Chancellor, SIM University Ministry of Education, Singapore Special Advisor to SIM Group 05) Professor Chong Chi Tat 09) Mr Ronald Tan (with effect from 1 November 2009) President Emeritus, Nanyang Technological University University Professor, Department of Mathematics Executive Director, Singapore Institute of Management National University of Singapore 14) Professor Cheong Hee Kiat 02) Mr Richard Y M Eu 10) Mr Lee Kwok Cheong Ex-Officio, Board of Trustees Group CEO, Eu Yan Sang International Ltd 06) Mr Er Kwong Wah CEO, Singapore Institute of Management Pte Ltd President, SIM University Executive Director, EASB Institute of Management 03) Mr Ong Boon Hwee 11) Mr Chan Heng Kee 15) Associate Professor Yip Woon Kwong Chief Operating Officer, Singapore Power Ltd 07) Dr N Varaprasad Chief Executive, Singapore Workforce Development Agency Secretary to the Board of Trustees Chief Executive, National Library Board Registrar, SIM University 12) Ms Tan Gee Keow Director, Higher Education Division Ministry of Education, Singapore (up to 31 October 2009)
34 35 UniSIM and Nanjing University formalising their Mr S Iswaran, Senior Minister of State for Trade & Industry and Education (left), CEO of PropNex Realty, Mr Mohamed Ismail Gafoor, Professor Cham Tao Soon (left), UniSIM Chancellor and collaboration on the PhD programme in Chinese Associate Professor Neelam Aggarwal, Dean, SASS, (2nd from left) and guest speakers sharing property trends and outlook at a ‘Let's Talk Chairman, presents a momento to Singapore Police language and literature at the inaugural language and literature forum Business@UniSIM’ public seminar Commissioner Khoo Boon Hui during the 2009 Convocation
The first and only university in Singapore dedicated In August, SASS held its first language and literature School of Business programme which was specially developed for the to working adults, UniSIM currently has about 11,000 UniSIM has four academic schools forum, ‘Crossing Cultures, Bridging Minds: A role Industry leaders of tomorrow Singapore Police Force and HomeTeam NS. students and 10,500 alumni. We are committed to School of Arts and Social Sciences for Singapore’s languages and literatures’. Graced The School of Business (SBIZ) offers a range of Students under this programme are eligible for high academic standards, programme diversity, School of Science and Technology by Mr S Iswaran, Senior Minister of State for Trade undergraduate degree programmes covering the scholarships by their organisations as part of their learning flexibility and the multiplicity of our School of Human Development and Social Services & Industry and Education, the event featured fundamentals as well as specialised knowledge in staff career development. partnerships and activities. In offering even more School of Business prominent speakers and drew about 200 participants areas such as logistics and supply chain options in higher education, we have launched in a discussion of pertinent issues related to the management, business analytics and security Additionally, the School conducted workshops and several new programmes and enhanced our development of language and literature in Singapore. studies. This fits well with the government’s recently talks to equip students with skills such as UniSIM offers more than academic programmes with an alignment with various industries through strategic 40 announced manpower training strategy to build presentation techniques and case study analysis. partnerships with key industry players. During the year, SASS also offered its Certification Other outreach programmes such as the ‘Let’s Talk enrolment of about 11,000 students and 10,500 alumni workers with deep skills in their chosen areas and Examination in Professional Interpretation to the public broad skills across general fields. Business@UniSIM’ seminars discussed current School of Arts and Social Sciences for the first time. Held in collaboration with the Ministry issues in business and featured prominent industry Four languages under one roof of Foreign Affairs’ Diplomatic Academy, this In July, SBIZ launched the Bachelor of Science in speakers from organisations including PropNex In line with its belief that a sound knowledge of Building on its strengths, UniSIM collaborated with SASS marked several significant events during the examination confers official recognition on translators Logistics and Supply Chain Management programme Realty, CordLife and IndoChine. language, culture, social and communication skills Nanjing University to offer the first PhD programme year. The Chinese language and literature programme and interpreters who have acquired the necessary with 89 students. Offered in conjunction with the is essential in today’s globalised world, the School in Chinese language and literature to raise students celebrated its 10th anniversary in February while skills required of practitioners in the vocation. Singapore Logistics Association, the programme Besides offering undergraduate and graduate degree of Arts and Social Sciences (SASS) has added two to the highest academic level of study. MOUs were the Tamil language and literature programme provides students with a blend of theoretical and programmes, the School offers a Diploma in new language and literature programmes to its also inked with Universiti Sains Malaysia and recorded a milestone in Tamil education in Singapore On the social sciences front, the School launched practical knowledge on the effective management of Management Studies in both full-time and part-time offerings. It is now the only university to offer degree Universiti Malaya to support the teaching of the with the graduation of its first cohort of 24 students. a Bachelor of Arts in Sociology featuring an in-depth supply chains in increasingly challenging environments. modes. The diploma programme, with a current programmes in Singapore’s four official languages. Malay language and literature programme. focus on contemporary issues in urban society that enrolment of over 1,800, prepares students for would be of particular interest to our working adults. This year also saw the graduation of the first intake undergraduate studies and trains them for managerial for the Management and Security Studies degree positions.
36 37 Well-known practitioner Professor Hong Hai with the Professor Cheong Hee Kiat, Mr Chan Tee Seng and Chief of Defence Force, LTG Desmond Kuek and Cindy Ng, UniSIM’s Bachelor of Engineering (Honours) UniSIM's Centre for Applied Research partners Land first cohort of students taking the TCM course Mrs Yu-Foo Yee Shoon seal an MOU for the first local UniSIM President, Professor Cheong Hee Kiat seal in Aerospace Systems student, on board a Diamond Transport Authority to conduct the Public Transport degree in early childhood education the partnership between SAF and UniSIM DA-40 aircraft, with instructor Mr Ng Yeow Meng Customer Satisfaction Survey
School of Human Development and The General Studies Programme (GSP) took on two School of Science and Technology The Technology Entrepreneurship (TEN) programme Industry-focused Research Other projects included a study on caring for persons Social Services university core courses – ‘Effective Communication’ Winning partnerships saw the graduation of its first cohort of July 2008. The Centre for Applied Research (CFAR) at UniSIM with Alzheimer’s disease for HDSS and another on and ‘Speaking with Confidence’ during the year. In The TEN programme has been garnering the comparative pedagogies in Chinese teaching for Increased popularity During the year, the School of Science and saw an increase in the number of jointly-funded July, the GSP also introduced a university-level Basic continual support of SPRING Singapore which offers SASS. The School of Human Development and Social Technology (SST), which offers programmes in areas research projects with industry and increased Principles and Practice of Traditional Chinese Medicine financial support for students’ tuition fees through Services (HDSS) has made large strides since the such as electronics, biomedical engineering and collaboration with academics from other universities. certificate course in English. The course, which was the Management Development Sponsorship Scheme. introduction of its first degree programme in 2007 human factors and systems, inked MOUs with the These projects were in diverse areas reflecting the Quality and Standards a first in Singapore, proved to be very popular. and now offers programmes in counselling, social Singapore Armed Forces (SAF) and MAJ Aviation. research interests of the schools. E-learning initiatives The year also saw the continuation of the monthly work, human resources management, early childhood To better support its working students who demand Another highlight of the School was the setting up TEN seminars which provide a platform for successful education and general studies. Under the agreement sealed with SAF, SST During the year, two major surveys were conducted flexibility in their learning, UniSIM continued to of C-three (Counselling and Care Corner) to provide developed a new suite of programmes in military and budding entrepreneurs to share their experiences in collaboration with SBIZ. The first was the quarterly augment its e-learning modules. The number of e- counselling services for UniSIM and SIM Global with students and members of the public. Speakers This year, HDSS successfully launched its first studies for SAF personnel and awards credits for Business Times-UniSIM survey on the business mode courses for blended learning featuring Education students. were drawn from ENZER Corporation, postgraduate programme – the Masters in Social courses undertaken within SAF which are accredited climate, now in its third year running. The second interactive, self-learning and reflective components Hungrygowhere.com, Red Hat and the Infocomm Work – which is designed for both social workers for UniSIM degrees. was the Land Transport Authority-UniSIM customer which are ideally suited for independent, self-paced To maintain the relevance of its programmes, the Development Authority, to name but a few. and professionals considering a mid-career change satisfaction survey, launched in the last quarter of learning, has tripled to 24 from their introduction in School continued to forge industry linkages and to the social work sector. The agreement with MAJ Aviation to offer a Flight 2009. July 2008. collaboration. In October, it signed an MOU with Discovery course leverages the experience and Postgraduate Programmes NTUC’s SEED Institute to develop a new Bachelor The School’s social work programmes were identified expertise of MAJ Aviation in aviation engineering During the year, four new postgraduate programmes, Work was also carried out with SST to complete a Online instructors are trained to create, e-moderate of Early Childhood Education with Management by the Singapore Workforce Development Agency support services to enhance SST’s Aerospace namely the Executive Master in Open Source proof-of–concept project on a biomedical implant and grade online discussions. Since 2008, over 130 programme. This programme is also supported by (WDA) for scholarship funding, with a total of 39 Systems Engineering programme. Software Management, Master in Environmental with a grant from the Economic Development Board Associates and faculty members have been trained the Ministry of Education (MOE), Ministry of students from both the Bachelor and Graduate Science, Master in Taxation, and Master in Social and a study on ‘Promoting decent work in global as online instructors. Community Development, Youth and Sports (MCYS) Diploma/Master programmes benefiting from the Work, were launched. They supplement the Master production systems’ with funding from the and WDA which offer scholarships and teaching WDA scholarships. in Technology Entrepreneurship programme that International Labour Organisation. awards to the UniSIM students. was started in July 2008.
38 39 UniSIM graduates party away at the inaugural Award winners from the School of Science and Technology with UniSIM senior Graduates' Night management and ST Engineering Deputy CEO, Mr Seah Moon Ming (seated fourth from left)
Internal audit Following the convocation, more than 300 alumni, Another important communication channel “We are proud to partner a leading To further underscore its commitment to quality, students and guests turned up for the retro-party introduced by the University is ‘Connecting UniSIM’ UniSIM set up its own Quality Assurance Unit in celebration at ZIRCA Mega Club. Mrs Yu-Foo Yee – a quarterly newsletter which includes updates on educational institution like UniSIM January 2009 to formalise the conduct of internal Shoon, Minister of State for Community the University’s developments as well as upcoming to develop globally competitive audits and to coordinate external audits, in particular Development, Youth and Sports, graced the event alumni events. Put together by the Newsletter MOE’s Quality Assurance Framework for Universities as the Guest of Honour. Editorial Group comprising a group of alumni infocomm professionals via the audits. In fact, UniSIM has been carrying out its own volunteers, this publication better engaged our UniSIM-SAP eAcademy. Globally, annual internal academic audits since 2005. These UniSIM alumni events and communication alumni and generated greater participation in alumni regular reviews, which are recorded in programme The UniSIM Alumni Network crossed its 10,000 activities. there is a growing demand for self-evaluation reports, help to ensure high academic membership mark in 2009. With the aim of bringing Enterprise Resource Planning (ERP) standards and continuous improvement. these alumni together, the Alumni Network held In June, the Alumni Network launched a marriage talks, workshops and outdoor events throughout solemnisation service for alumni to help capture the professionals who are equipped with Students and Alumni the year. In February, UniSIM launched an alumni memories of their study at the UniSIM campus. The SAP skills to drive efficiency and UniSIM Graduates’ Night 2009 portal, providing a 24/7 link for fellow alumni to stay service seeks to forge stronger bonds with and cater to the needs of the growing number of alumni, Held in October, UniSIM Graduates’ Night 2009 was in touch with the University and with one another. growth. We are dedicated to ensuring especially those who found their partners while a time to celebrate and cement friendships. The The portal includes an e-directory, job postings, that there is a constant pipeline of studying at the University. event was held shortly after UniSIM hosted the announcements, live chat and other features. largest cohort of 1,162 graduates over three SAP-certified consultants in the graduation ceremonies. industry.”
Anette Karlsson Director, SAP Education South East Asia
40 SIMglobal education
A global network that spans continents and cultures. An education that nurtures the soft and hard skills needed for success. Bringing together thousands of local and overseas students onto one campus. We see this as a global convergence of academic diversity, differing perspectives, ideas and experiences - a firm commitment towards a smart education driven by a learning environment that is shaped to build global citizens.
43 SIM Pte Ltd board of directors
01 02 03 07 08
04 05 06 09 10 11 Human Resources Committee Mr Hsieh Fu Hua (Chairman) Mr Richard Y M Eu Mr Victor Liew Cheng San
01) Mr Hsieh Fu Hua 04) Mr Victor Liew Cheng San 07) Mr Lee Kwok Cheong 09) Mr Richard Y M Eu Chairman, Singapore Institute of Management Pte Ltd Board of Directors Corporate Advisor, Temasek Holdings Pte Ltd CEO, Singapore Institute of Management Pte Ltd Group CEO, Eu Yan Sang International Ltd CEO, Singapore Exchange Ltd (till November 2009) 05) Mr Vincent Chin 08) Professor Cham Tao Soon 10) Mr Ong Boon Hwee Co-founder and Advisor of Prime Partners Group of Companies Partner & Managing Director, The Boston Consulting Group Special Advisor to SIM Group Chief Operating Officer, Singapore Power Ltd (with effect from January 2010) Chairman, SIM University Board of Trustees 06) Mr Ronald Tan Chancellor, SIM University 11) Professor Cheong Hee Kiat 02) Mr R Dhinakaran Executive Director, Singapore Institute of Management President Emeritus, Nanyang Technological University Ex-Officio, Singapore Institute of Management Pte Ltd Board of Directors Managing Director, Jay Gee Group of Companies President, SIM University
03) Mr Raymond Kwok Chairman, Kwok Group LLP
44 45 SIM GE's latest partner - The University of Birmingham A proud SIM-University of London (UOL) graduate Top SIM-University at Buffalo undergraduate and SIM GE students and staff with Mr Bill Wang, A student posing for a shot at fame in the SIM GE located in the lovely suburb of Edgbaston receiving her degree from Sir Graeme Davies, Vice- postgraduate students President of E-CT Asia Computer at the Global 'Bring Out Your Best@SIM' campaign Chancellor of UOL Corporate Learning Programme in China
SIM Global Education (SIM GE) had another good European Quality Improvement System (EQUIS), These achievements attest to the rigour of our With this goal in mind, 88 students took part in our A pioneer batch of 17 full-time and final year students year in 2009. Total enrolment grew from 18,000 to reflecting its high academic standards and academic programmes and the uncompromising first ‘Summer Abroad’ programme, where they attended the programme with very good results; 19,500 despite a slight dip in applications due to commitment to quality and rigour. service and infrastructure support we put in place experienced learning at top universities such as the 90% of these students found jobs even before their • SIM GE offers over 50 the economic situation. With the proud inclusion of to ensure the success of our students. London School of Economics and Political Science, final year results were out. The second ARS programmes a new university partner - The University of Celebrating Academic Excellence University of California, Berkeley, and Peking programme was conducted in October with 18 Birmingham (UoB) - we now partner 12 reputable 2009 marks yet another year of high academic Nurturing All-rounded Individuals University among others. 2009 also saw the students and with the popular demand, we plan to • SIM GE has 19,500 universities to offer students more than 50 quality achievements for SIM GE students. This year, 52% More than just academic excellence, we believe in participation of 12 students in our inaugural SIM run it on a yearly basis. students enrolled and postgraduate, degree and diploma programmes in of our 133 graduates from the SIM-University at providing opportunities for nurturing well-rounded Global Corporate Learning Programme to China. various disciplines. Buffalo (UB) undergraduate programme received growth in our students. While there, our students visited prominent Learning through vibrant campus life multinational organisations and interacted with C- There were many opportunities on campus for 84,000 graduates Latin Honours. New Strategic Alliance Education Abroad Programme level executives such as Mr Bill Wang, President of students to further develop character through • Current full-time student population The good name and standing of SIM has enabled Also, a total of 56 First Class Honours students from The SIM Education Abroad Programme was E-CT Asia Computer, a leading Taiwanese Original leadership, mentoring and service roles. One hundred us to attract reputable partners as well as high calibre the SIM-University of London (UOL) programmes established with the mission of creating and Equipment Manufacturer (OEM). and thirty four Student Ambassadors from 14 stands at 14,000 faculty and students. The launch of UoB’s were produced, bringing the grand total of SIM-UOL facilitating high-quality international exposure for countries were recruited to help connect with other programmes with the first intake in July 2009 bears First Class Honours graduates to 310 since the SIM GE students. This mission directly supports the All-Rounder Student Development students, promote SIM GE, host overseas visitors • Nearly 20% of full-timers are testament to this. England’s oldest business school, partnership first began in 1986. In addition, the holistic development of our students and contributes Programme and assist in international education fairs. Nine Resident Leaders were also recruited to coordinate international students UoB partners SIM in offering five management SIM-UOL Diploma in Economics students achieved to producing young graduates who have a As part of the holistic educational experience, we undergraduate programmes in the areas of business 36 Distinctions, twice the number in the previous heightened awareness of global affairs, are sensitive launched the All-Rounder Student Development activities that help enrich hostel life at our Ulu Pandan management and international business. year. Of these, 34 of the winners were international to cross-cultural and cross-regional differences, and Programme (ARS) in early 2009 to equip students Campus as well as mentor new hostelites. students – a clear reflection of SIM’s commitment possess the necessary skills set to function with career-ready skills such as interviewing, The collaboration is a first for UoB in offering to being the institution of choice for international internationally. business etiquette and networking skills. undergraduate programmes in Asia. All programmes students to excel in their studies. offered by UoB have received accreditation by the
46 47 Students and mascot of the SIM-RMIT Bachelor Members of the SIM iCARE student club do their bit Students from the Youth Expedition Project@SIM team Guest-of-honour Assistant Professor C Kunalan, Mr Lee Kwok Cheong, CEO of SIM Pte Ltd (right), at A cast member from the student play 'Blood Ties' of Design programme hit town with their wacky for charity by creating a record-setting smiley face of do their bit to help the farming communities in speaking at the SIM Sports Award Nite 2009 the MOU to sponsor the Singapore Open Windsurfing produced by the SIM Film and Performing Arts Society promotional efforts for their graduation exhibition 1,600 cards Chiang Mai, Thailand Championship ‘I have designs on you’
Students were also given the chance to get involved In line with our support of sports, SIM took up a directed by SIM alumnus Glarie Chiong, and written Caring for the Community from the UOL Student Representative Council. The platform for students to network with potential in our marketing activities. At the second annual three-year title sponsorship of the Singapore Open and produced by SIM-Royal Melbourne Institute of One objective of a SIM GE education is to nurture children sent their wishes to be hung on a Christmas employers. A special by-invitation-only networking ‘Bring Out Your Best@SIM’ campaign, some 500 Windsurfing Championship, renamed the SIM 29th Technology (RMIT) graduate, Justin Kan, was well future citizens who have a heart for the community tree in the SIM HQ atrium. Staff and students came session was also organised to connect 250 of our students responded to our call for student models Singapore Open Windsurfing Championship. received. they live in and beyond. SIM supported a number forward to pledge their support by helping to make top graduating students with 13 notable and our Facebook fan page amassed over 10,000 of initiatives that encourage students to give back those wishes come true. organisations. fans over three weeks of publicity! This sponsorship of a national sports event was a Showcasing their creativity and design flair, 43 to the community. One such initiative was the “Give first for SIM. It is our hope that the event will provide students from the 7th intake of SIM-RMIT Bachelor a Hand” campaign of the Community Chest. With Our students’ community work extended beyond For the graduating international students, the Encouraging sporting achievements an arena for our local windsurfing teams, including of Design (Communication Design) programme the help of donors, supporters and the SIM iCARE our shores. In June, a group of 18 students left for International Student Office organised ‘The Next We are pleased that our student athletes’ sweat and SIM's very own, to hone their skills by competing successfully organised their graduation exhibition, student club, students set a record with the creation Chiang Mai, Thailand on a Youth Expedition Project Lap 2.0’ event in March to provide information on toil on the sports field was rewarded with accolades with the best in the region. ‘I have designs on you’, in July. of the largest smiley face formed from 1,600 cards. (YEP) to help set up a learning centre for the farming job searches, market trends and employment laws in an array of activities. Our sportsmen and women The cards were sold on campus and raised more communities there. This centre helps farmers gain in Singapore. garnered a total of 26 gold awards in sports such Plugging in to a vibrant arts scene The event comprised works of students revolving than S$3,000 for the Metta School, a beneficiary of valuable knowledge about bio-gas and environmental as bowling, canoeing, floorball and pool. Making us At year end, SIM GE has 58 student clubs, all initiated around four topics as well as talks and workshops the Community Chest. preservation. The team also conducted an innovative All these efforts paid off. Despite the gloomy especially proud was the SIM Badminton Team that with the objective of providing opportunities for delivered by 16 internationally acclaimed speakers. education programme for the local school to help economic climate, the 2009 Graduate Survey of the defended their champion title at the Institute-Varsity- students to pursue a variety of interests outside The five-day event was a rousing success that The SIM Young Entrepreneurs' Network Club also improve English literacy standards and skills of its SIM-RMIT Bachelor in Business (Marketing) Polytechnic Games 2009. study and establish a healthy work-life balance that attracted some 850 visitors. chipped in by organising a Valentine's Day youth through recreational activities. graduates, for instance, revealed that close to half will serve them well in future. Extravaganza, donating part of the proceeds from of the respondents found their first job within three The SIM Sports Award Nite was an opportunity to the event to the National Cancer Society. Enhancing Graduates’ Employability months of graduation. celebrate students’ success in sports. This glitzy One such club is the SIM Film and Performing Arts To help our graduates in their job search, SIM affair saw 364 SIM students awarded for outstanding Society which showed off the artistic talents of our Children from the Kids United Home were given a organised its annual Job Fair in March. Participated sporting contributions to the institution – a marked students with a play entitled ‘Blood Ties’ at the treat on Christmas Day – thanks to the students by 26 companies, the two-day event provided a increase from just 261 in 2008. Victoria Theatre in January. This ticketed performance
48 49 SIM GE was voted the top choice institution for those seeking private education in Singapore.
SIM GE won the 'Best International Marketing Effort by a Private Educational Institution' award at the STB Singapore Education Awards 2009
Connecting with Students and Winning Recognition from Industry For the second year running, SIM GE won the ‘Best “SIM GE’s programmes are relevant Alumni For our commitment to quality and standards, SIM International Marketing Effort by a Private Educational Institution’ at the 2009 STB’s Singapore Education To connect with our international graduates, we plan GE once again won accolades from the industry in to the dynamic business environment Awards. to set up overseas chapters in our main markets. 2009. and this when delivered through On 3 July, the first overseas chapter gathering was SIM GE also made headlines by topping the 2009 held in Jakarta, Indonesia. A total of 82 graduates, In a JobsCentral survey of over 7,000 respondents, their patient, understanding and list of Singapore’s ‘Fastest Growing 50’ (FG50) students and guests from the Singapore Tourism SIM GE was voted the top choice institution for professional faculty, help me learn companies. An annual initiative by the DP Information Board (STB), local high schools and recruitment those seeking private education in Singapore. In the Group, the FG50 award recognises the 50 fastest agencies attended the inaugural event. same survey, SIM University came in a close second. and prepare me for future challenges In another survey, the ‘People’s Choice Awards’ by growing companies based on their compounded that lie ahead.” annual group rate (CAGR) in turnover over a three- To encourage communication and sharing among AsiaOne, SIM GE was voted for the second year running ‘Top Private School’, this time in two year financial period. SIM is the first educational students, we launched our first student blogging Lim Li Min categories - undergraduate and postgraduate, institution to make the list since the ranking was microsite (www.sim.edu.sg/blogs) in September. Student, SIM-The University of Birmingham, garnering the majority of votes cast by AsiaOne first compiled eight years ago. Driven by student bloggers, this gives our students BSc (Hons) in Business Management a voice, allowing them to share their stories and readers. perspectives, as well as comments on happenings on campus.
50 SIMprofessional development
Human capital is the single most important resource of a business. The capability of this resource impacts productivity. Ensuring that the knowledge and skills of your human resources are kept competitive is the mission of the SIM Professional Development. We bring in top speakers and develop customised solutions that help propel your organisation. In short, we help align your human capital to your business strategy and success.
53 The ‘Job of the Chief Executive’ participants with Professor J B M Kassarjian facilitating the A Disney facilitator sharing best practices with Chairman of SIM Governing Council, Mr Richard Steve Farber, author of ‘Greater Than Yourself: The Professor J B M Kassarjian (front row fourth from JOCE programme workshop participants Eu with women leaders at the Women Ultimate Lesson of True Leadership’, shared insights right), JOCE Programme Director Entrepreneurship Forum on leadership approaches
Learn the Advantage with SIM Developing Leaders and their Human In June, a special JOCE alumni portal was launched The Disney Keys to Excellence Women Entrepreneurship Forum 2009 Greater Than Yourself Professional Development Capital to provide a platform for alumni and faculty members The Disney magic touched participants from Singapore Recognising the growing importance of women More than 45 executives received first-hand to connect and engage with one another. and around the region for the third year running. By leaders in business, SIM PD launched the Women leadership lessons from Steve Farber, the author of As a leading provider of human resource The Job of the Chief Executive (JOCE) popular demand, SIM PD ran The Disney Keys to Leadership Forum in 2008. Continuing the success Greater Than Yourself: The Ultimate Lesson of True development (HRD) solutions to executives and In 2009, SIM PD’s signature event, JOCE, received Excellence programme twice in 2009. The programme of this forum is the Women Entrepreneurship Forum Leadership. The insightful programme advocated a companies in Singapore and the Asia Pacific region, funding support for the first time from SPRING attracted 400 participants from various industries to in 2009 which focuses on the leadership styles of radical and extreme leadership approach that SIM Professional Development (SIM PD) continues Singapore, as part of its Business Leaders Initiative learn the Disney style of leadership, management, successful women entrepreneurs. Six prominent expounds dedicating oneself to developing others to offer the widest range of business and scheme for SMEs. This is a glowing recognition of quality service, loyalty and team creativity that has women entrepreneurs and leaders shared their as the ultimate way to boost talent, ramp-up management programmes in areas such as JOCE as a quality programme that helps groom and brought them world-renowned success. success stories and leadership styles with about productivity and create truly significant leaders. leadership, creativity, communications, negotiation develop not only CEOs from larger corporations, 100 participants in an inspiring exchange of and marketing. but also business leaders from SMEs. This year, 36 experiences and perspectives. senior executives, from both public and private More than 11,000 executives In 2009, SIM PD experienced a slight drop in the enterprises, locally and from the region, attended number of participants trained as a result of the JOCE. were trained through 400 seminars, economic crisis. About 600 public seminars, conferences and customised in-company The five-day programme helps senior executives take workshops and conferences and programmes were organised, providing some 11,000 stock of the challenges that come with their roles in executives with upgrading opportunities for their today’s highly volatile global business environment. 200 customised in-company projects personal growth, functional and professional It also provides an excellent networking platform for proficiency. the sharing of best practices. For the past 29 years, JOCE has attracted more than 1,100 C-suite executives from 40 countries around the world.
54 55 For the fourth year running, HR practitioners have endorsed SIM PD as the preferred partner in the ‘HR Vendors of the Year 2009’ award.
The Job of the Manager (JOMAN) Strategic HRD Partner to Companies Winning Industry Recognition “The JOCE programme was a The rapidly changing business landscape has seen To help companies maximise the effectiveness of For the fourth year running, HR practitioners have the role of a manager evolving. To meet the their human resource development programmes, endorsed SIM PD as the preferred partner in the wonderful experience beyond my challenges, SIM PD updated its general management SIM PD works closely with clients to analyse their ‘HR Vendors of the Year 2009’ award, organised by expectation. I benefitted greatly from development suite to make it more relevant. Known unique needs and design customised learning and the Human Resources magazine. SIM PD bagged as ‘The Job of the Manager’ (JOMAN), this is a development solutions that produce sustainable the Preferred Management Training Firm, Preferred the fantastic and unselfish sharing progressive suite that emphasises the knowledge competitive advantage and bottom-line results. Sales Training Firm and Preferred Succession by CEOs from different nationalities and skills for general management as well as the About 200 in-company projects were undertaken to Planning Consultant awards, sealing our reputation leadership capabilities required to be effective at develop the competencies of more than 4,000 as the leading learning and development provider and companies, as well as the various levels of management responsibility. working executives from both public and private in Singapore. dedicated and helpful professionals sectors, locally and regionally. and faculty who facilitated the programme.”
Jeannie Tien JOCE 2009 Alumna Chairman, Atlas Sound and Vision Pte Ltd
56 SIMsupport services
For every successful organisation, there are the unseen heroes, the people behind the scene, providing crucial collaboration within the institute and between the institute and its partners. Support services are vital to our success, and we aim to enhance this crucial component even as we seek to ride into greater horizons.
59 Skeletal to SIM’s commitment to its quality promise and differentiating reputation is a rigorous academic and quality assurance process put in place for the benefit of our students. Mr Seah Chiong Tian, GCS Group Director, speaking HR Manager, Ms Grace Ng receiving the Meritorious at a workshop to improve service levels Defence Partner Award on behalf of SIM
SIM International Academic Panel Quality and Standards Quality service initiative of training hours clocked by SIM staff was 25,616 and invest in technology that supports and enhances To better align internal support services to the various hours, averaging 42 hours per staff. This continues our business. IT equipment in our computer labs and International Academic Panel Chairman entities’ business goals, half-yearly SIM-wide surveys to compare favourably with the national target of 40 teaching facilities were upgraded, a brand new Games Skeletal to SIM’s commitment to its quality promise Professor Cham Tao Soon are conducted to assess the quality of services training hours per staff. Development Lab was set up to support the SIM- and differentiating reputation is a rigorous academic Chancellor and Chairman provided and identify areas of improvements. Areas University of Wollongong multimedia course and our and quality assurance process put in place for the SIM University benefit of our students. such as staff knowledge and competencies, service SIM’s commitment to investing in our staff and to lecturers’ lounge at HQ was completely refurbished Professor Pang Eng Fong Ms Tan Yen Yen attitude and processes, and effectiveness of putting in place the necessary people systems to and IT-equipped to provide better support for lecturers. Guidance on quality in academia and delivery is Professor of Management Practice Chairman, Singapore Infocomm Technology Federation communication are looked into. Since the survey build our business excellence has been affirmed by In addition, wireless coverage in the library and food provided by an International Academic Panel Lee Kong Chian School of Business Vice-President & Managing Director was first conducted in June 2008, the ratings from the Business Excellence Assessment Committee of court at HQ was boosted to provide quicker and comprising established academics from reputable Singapore Management University Hewlett-Packard Singapore (Sales) Pte Ltd internal customers have consistently been improving. Singapore when it conferred SIM with the People better internet access for members and students. universities internationally. The panel does yearly Professor Er Meng Hwa Dr Ray Richardson This Quality Service Initiative has surfaced insightful Developer Award in 2009. reviews and advises on SIM’s programmes, curricula Senior Associate Provost Dean, LSE External Study results for making improvements and will be a Systems performance and security continued to be and operations. President’s Office London School of Economics and Political Science continuing exercise as we seek to consistently deliver We were also awarded the Meritorious Defence important concerns for SIM. Enhancements such Nanyang Technological University our quality promise to both internal and external Partner Award in 2009 for our support towards as the installation of more up-to-date web application The programmes at UniSIM and SIM GE are Professor John M Thomas Dr Frits Pannekoek customers. national defence. We have implemented National firewalls resulted in improved security and systems supervised by respective Academic Boards which Dean Emeritus, School of Management President Service (NS) friendly human resource policies that performance for students and staff. In response to oversee programme curriculum, pedagogy, State University of New York at Buffalo Athabasca University Quality staff for quality service facilitate and support our employees in fulfilling their the H1N1 outbreak, plans are underway to put in partnerships and presentation, examinations and Professor David Dickinson Professor Gill Palmer Despite the economic downturn, SIM continued to NS obligations. place a Business Contingency Plan to ensure assessments, as well as student admission. Director & Head of School Pro Vice-Chancellor (Business) invest generously in our greatest asset—our staff. operational continuity and resilience during a crisis. University of Birmingham RMIT University In 2009, we spent almost $1m to raise the Enhancing IT infrastructure Dr Lim Ser Yong competencies and professional knowledge of staff Responding to the rapidly changing needs of our Executive Director through training and development. The total number customers and operations, we continued to update Singapore Institute of Manufacturing Technology
60 61 President S R Nathan hitting the 'gong' to Ms Sim Mui Hiang, Campus Development President S R Nathan and Mrs Nathan with young SIM GE scholarship recipients together with family members, SIM Pte Ltd launch the SIM Campus Development Director, showing the new campus to talents at the SIM-sponsored Singapore Symphony CEO, Mr Lee Kwok Cheong (extreme left) and staff of SIM Platform Topping Up Ceremony President S R Nathan and SIM leaders Orchestra President's Young Performers Concert
Investing in the Campus of the Future The concept behind the SIM Campus Development With enhanced infrastructure and increased facilities, Community Relations and companies to enable their staff to pursue UniSIM ninth consecutive year. In annually partnering SSO, In October, we announced our Master Plan to further Master Plan is that of a learning environment that we are braced to respond to increasing demand for Social Responsibility programmes. Ninety of such staff benefited from the SIM endeavours to play a small part in helping engages students through the “third teacher” – the our programmes and to playing a greater role as the sponsorship totalling about $174,000. Singapore develop a rich and vibrant arts and cultural expand our Clementi campus at a platform topping Scholarships and awards campus environment. Under the first phase of the leading higher education and lifelong learning institute scene that attracts world class artists to perform up ceremony graced by President S R Nathan and At SIM, we strongly believe that no one should be project, a six-storey building will be erected next to in the private education industry. SIM GE awarded 25 scholarships worth $160,000 here and also provides a nurturing platform for our attended by some 200 guests. Costing $300m, the denied an education. During the year, we gave out the existing campus. Besides extensive teaching to students for their academic, artistic and sporting homebred talent. Our support of cultural philanthropy Master Plan will add another 56,000 square metres a total of $360,000 in scholarships, study awards facilities, the new building will house a student hub, achievements. Of these, three scholarships were and the SSO concert is very much aligned to our of space to double our current campus size and and bursaries to deserving and financially needy an extended library, study spaces in an open courtyard given in recognition of sporting and artistic talent. mission of developing people to their maximum further consolidate our position as the largest private students of UniSIM and SIM GE. tertiary institution in Singapore, both in campus size and a gymnasium to work away study stress. Some 58 needy students also benefited from potential not just academically but also in other bursaries, valued at $2,000 each. fields such as the arts. We also hope that our support and student enrolment. It will be rolled out in two UniSIM awarded 32 scholarships worth more than of this series will instill in our students an awareness phases and expected to complete in 2014. $200,000. In response to the recession, it also stepped Supporting the arts of life beyond their studies and as a result become up its financial aid by giving out study awards valued SIM sponsored the Singapore Symphony Orchestra more rounded in their interests and outlook. at $1,000 each, to 61 needy students. On top of (SSO) President’s Young Performers Series for the these, UniSIM took up co-sponsorships with
62 63 staffdirectory
Singapore Institute of Management Estates and Facilities Provost Departments Singapore Institute of Management Pte Ltd SIM Global Education Mr Goh Boon Beng Professor Tsui Kai Chong Planning and Finance Executive Director Ms May Goh Chief Executive Officer Higher Education Mr Ronald Tan Hee Huan Finance & Administration Registrar Mr Lee Kwok Cheong Mrs Ho Soon Eng Mr Eugene Chan Associate Professor Yip Woon Kwong Centre for Applied Research Mr Chiow Boon Keng Assistant Executive Director Professor Koh Hian Chye (up to 30 April 2009) Assistant Chief Executive Mr Lim Kuan Meng Mrs Chong Keng Boon (up to 31 August 2009) Human Resources School of Arts and Social Sciences Associate Professor Chan Yoke Kai (from 1 May 2009) Ms Peggy Lim Ms Poh Ca Oon Dean Student Registry Campus Development Associate Professor Neelam Aggarwal Office of Graduate Studies Business & Marketing Relations Ms Mary Lee (from 16 April 2009) Ms Sim Mui Hiang Infocomm Technology Services Associate Professor Chay Yue Wah Ms Judy Wong Mr Ang Lek Han School of Business Student Life and Services SIM Membership Services Dean Educational Technology and Production IT & Facilities Management Mrs Ho Soon Eng Ms Tang Mei Sin SIM University Professor Koh Hian Chye Associate Professor Sharen Liu Ms Tham Ai Chyn
SIM Professional Development Patron School of Human Development and Social Campus IT Services Organisation Development Mr Jeffery Tan His Excellency President S R Nathan Services Mr Gary Teo Ms Yong Mai Vean Dean Consulting Partner Chancellor and Chairman Professor Tsui Kai Chong Office of Academic Services Mr Ong Teong Wan Professor Cham Tao Soon (up to 2 August 2009 as Interim Dean) Mr Zenon Teh Professor Tan Ngoh Tiong (from 3 August 2009) SIM Group Corporate Services Academic Advisors Office of Admissions Professor Aline Wong School of Science and Technology Ms Serene Lim Group Director Professor Eddie Kuo Dean Mr Seah Chiong Tian Professor Chong Chee Leong Office of Student & Alumni Relations President Ms Agnes Kwang (up to 1 May 2009) Corporate Communications Professor Cheong Hee Kiat Ms Evelyn Chong (from 15 June 2009) Ms Jocelyn Pang
64 65 corporateinformation
The Singapore Institute of Management is a not- Registered Addresses / Headquarters Contact Information SIM Membership Services Trustees Lawyer for-profit professional membership organisation. It SIM Headquarters & SIM University SIM University Tel: (65) 6248 9489 British & Malayan Trustees Ltd Ramdas & Wong 461 Clementi Road Tel: (65) 6248 9777 Fax: (65) 6462 5751 1 Coleman Street 36 Robinson Road was incorporated and registered under the Societies Singapore 599491 Fax: (65) 6763 9077 Email: [email protected] #08-01 The Adelphi #10-01 City House Ordinance (Ch. 228) on 28 November 1964. Email: [email protected] Website: www.sim.edu.sg Singapore 179803 Singapore 068877 Centres Website: www.unisim.edu.sg (Date of appointment: 4 June 1974) The principal activities of the Institute include SIM Management House Charity registration number Auditor membership services, higher and continuing 41 Namly Avenue SIM Global Education 00180 Estate and Trust Agencies (1927) Limited Deloitte & Touche LLP Singapore 267616 Tel: (65) 6248 9746 51 Emerald Hill Road 6 Shenton Way, #32-00 education, the provision of human resource Fax: (65) 6462 9411 Unique entity number Singapore 229327 DBS Building Tower Two development and training opportunities, and SIM Clementi Centre Email: [email protected] S64SS0050A (Date of appointment: 31 May 1986) Singapore 068809 customised in-company training in Singapore and 535A Clementi Road Website: www.sim.edu.sg the region. Singapore 599490 Principal Banker SIM Professional Development Citibank, N.A. SIM Global Education Campus @ Ulu Pandan Tel: (65) 6246 6746 3 Temasek Avenue 100 Ulu Pandan Road Fax: (65) 6467 4401 #17-00 Centennial Tower Singapore 596471 Email: [email protected] Singapore 039190 Website: www.sim.edu.sg
66 67 gathering of
mindsSIM financial report 2009
Artist’s impression of the SIM Campus Development (Phase 1) as seen from Clementi Road statement by governing council contents In the opinion of the Governing Council, the consolidated financial statements of the Group and the statement of financial position, statement of comprehensive income and statement of equity of the Institute as set out on pages 3 to 53 are drawn up so as to give a true and fair view of the state of affairs of the Group and Institute as at December 31, 2009, and of results and changes in equity of the Group and Institute and cash flows of the Group for the financial year then ended and at the date of this statement there are reasonable grounds to believe that the Institute will be able to pay its debts when they fall due.
ON BEHALF OF THE GOVERNING COUNCIL
Statement by governing council 01
Independent auditors’ report 02 Mr Richard Y M Eu Statements of financial position 03
Statements of comprehensive income 04
Statements of changes in equity 05 - 06 Mr Ronald Tan Hee Huan Consolidated statement of cash flows 07
Notes to financial statements 08 - 53 March 23, 2010
01 independent auditors’ report statements of financial position to the members of Singapore Institute of Management December 31, 2009
We have audited the accompanying financial statements of Singapore Institute material misstatement of the financial statements, whether due to fraud or error. In Group Institute of Management (the “Institute”) and its subsidiaries (the “Group”) which comprise making those risk assessments, the auditor considers internal control relevant 2009 2008 2009 2008 ASSETS Note $’000 $’000 $’000 $’000 the statements of financial position of the Group and Institute as at December to the Institute’s preparation and fair presentation of the financial statements in 31, 2009, and the statements of comprehensive income and statements of order to design audit procedures that are appropriate in the circumstances, but CURRENT ASSETS Cash and cash equivalents 6 250,576 232,835 96,255 111,290 changes in equity of the Group and the Institute and statement of cash flows not for the purpose of expressing an opinion on the effectiveness of the Institute’s Sundry debtors, deposits and prepayments 7 13,615 11,866 6,767 2,734 of the Group for the year then ended, and a summary of significant accounting internal control. An audit also includes evaluating the appropriateness of Forward foreign exchange contracts 8 1,067 557 4 403 Financial assets at fair value through profit or loss 9 9,583 7,870 7,591 6,165 policies and other explanatory notes, as set out on pages 3 to 53. accounting policies used and the reasonableness of accounting estimates made Held-to-maturity financial assets 10 19,326 6,999 9,285 3,000 by management, as well as evaluating the overall presentation of the financial Total Current Assets 294,167 260,127 119,902 123,592 statements. We believe that the audit evidence we have obtained is sufficient Management’s Responsibility for the Financial Statements NON-CURRENT ASSETS The Institute’s Governing Council (“Governing Council”) is responsible for the and appropriate to provide a basis for our audit opinion. Available-for-sale investments 11 55,902 46,621 39,355 32,716 preparation and fair presentation of these financial statements in accordance Held-to-maturity financial assets 10 6,774 17,345 6,774 12,307 Subsidiaries 12 - - 2,500 2,500 with the provisions of the Singapore Societies Act, Cap. 311 (the “Act”) and Opinion Property, plant and equipment 13 137,512 99,592 123,740 87,929 Singapore Financial Reporting Standards. This responsibility includes: devising In our opinion, Total Non-Current Assets 200,188 163,558 172,369 135,452 and maintaining a system of internal accounting controls sufficient to provide (a) the consolidated financial statements of the Group and the statement of TOTAL ASSETS 494,355 423,685 292,271 259,044 a reasonable assurance that assets are safeguarded against loss from financial position, statement of comprehensive income and statement of LIABILITIES, RESERVES AND FUND BALANCES unauthorised use or disposition; and transactions are properly authorised and changes in equity of the Institute are properly drawn up in accordance with that they are recorded necessary to permit the preparation of true and fair profit the provisions of the Act and Singapore Financial Reporting Standards so as CURRENT LIABILITIES and loss account and balance sheet and to maintain accountability of assets; to give a true and fair view of state of affairs of the Group and Institute as at Sundry creditors 14 40,571 24,478 23,143 12,537 Course and membership fees received in advance 43,257 46,687 771 742 selecting and applying appropriate accounting policies; and making accounting December 31, 2009 and of the results and changes in equity of the Group and Government grants received in advance 15 22,332 23,657 22,038 23,344 estimates that are reasonable in the circumstances. Institute and cash flows of the Group for the year ended on that date; and Forward foreign exchange contracts 8 73 3,058 - - Total Current Liabilities 106,233 97,880 45,952 36,623
Auditors’ Responsibility (b) the accounting and other records required by the Act to be kept by the Institute RESERVES AND FUND BALANCES Accumulated surplus have been properly kept in accordance with the provisions of the Act. Our responsibility is to express an opinion on these financial statements based General fund 302,089 262,988 240,908 224,300 on our audit. We conducted our audit in accordance with Singapore Standards Education fund 16 77,247 66,891 - - Star fund 17 467 - 467 - on Auditing. Those standards require that we comply with ethical requirements 379,803 329,879 241,375 224,300 and plan and perform the audit to obtain reasonable assurance whether the Deloitte & Touche LLP Other restricted funds 18 375 602 - - financial statements are free from material misstatement. Public Accountants and Hedging reserve 19 1,061 (2,020) - - Fair value reserve Certified Public Accountants General fund 4,944 (1,879) 4,944 (1,879) An audit involves performing procedures to obtain audit evidence about the Singapore Education fund 16 1,939 (777) - - 20 6,883 (2,656) 4,944 (1,879) amounts and disclosures in the financial statements. The procedures selected March 23, 2010 depend on the auditor’s judgement, including the assessment of the risks of Total Reserves and Fund Balances 388,122 325,805 246,319 222,421
TOTAL LIABILITIES, RESERVES AND FUND BALANCES 494,355 423,685 292,271 259,044
02 See accompanying notes to financial statements. 03 statements of comprehensive income statements of changes in equity Year ended December 31, 2009 Year ended December 31, 2009
Group Institute Group General Fund Education Fund 2009 2008 2009 2008 Other Currency Note $’000 $’000 $’000 $’000 Accumulated Fair value Sub Accumulated Fair value Sub Star restricted Hedging translation surplus reserve total surplus reserve total fund funds reserve reserve Total Income $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Course, conference and consultancy 195,900 175,463 7,498 - Membership fees and services 2,324 2,775 2,390 2,874 Balance at Government grants utilised 15 1,445 1,469 1,306 1,306 January 1, 2008 248,233 (1,114) 247,119 58,114 (427) 57,687 - 472 385 (2) 305,661 Interest income 3,420 3,930 1,861 1,905 Rental income 2,227 1,507 1,165 1,154 Dividend income 378 - 20,248 30,000 Total comprehensive Group Corporate Services charges from subsidiaries - - 20,680 22,044 income (expense) Other income 3,197 1,503 460 198 for the year 14,755 (765) 13,990 8,777 (350) 8,427 - 130 (2,405) - 20,142 Total Income 208,891 186,647 55,608 59,481 Deregistration of Expenditure subsidiary ------2 2 Course, conference and consultancy 80,863 72,023 5,611 - Membership expenses 1,884 1,752 1,884 1,752 Balance at Donations to outside parties 118 92 86 69 December 31, 2008 262,988 (1,879) 261,109 66,891 (777) 66,114 - 602 (2,020) - 325,805 Administrative expenses 21 78,622 69,777 32,256 27,765 Other gains and losses 22 (2,896) 19,471 (1,680) 13,852 Total comprehensive Total Expenditure 158,591 163,115 38,157 43,438 income for the year 39,944 6,823 46,767 10,356 2,716 13,072 - (227) 3,081 - 62,693
Excess of income over expenditure 50,300 23,532 17,451 16,043 Transfers (843) - (843) - - - 843 - - - - Other comprehensive income Utilisation ------(376) - - - (376) Cash flow hedges 25 3,081 (2,405) - (53) Available-for-sale investments 25 9,539 (1,115) 6,823 (765) Balance at Funds (utilised) received – Net (227) 130 - - December 31, 2009 302,089 4,944 307,033 77,247 1,939 79,186 467 375 1,061 - 388,122 Total other comprehensive income (expense) for the year, net of tax 12,393 (3,390) 6,823 (818)
Total comprehensive income for the year 62,693 20,142 24,274 15,225
04 See accompanying notes to financial statements. 05 statements of changes in equity (cont’d) consolidated statement of cash flows Year ended December 31, 2009 Year ended December 31, 2009
Institute Accumulated Hedging Fair value Star Group surplus reserve reserve fund Total 2009 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Operating activities Excess of income over expenditure 50,300 23,532 Balance at January 1, 2008 208,257 53 (1,114) - 207,196 Adjustments for: (Writeback of) Allowance for doubtful debts (16) 16 Change in fair value of forward foreign exchange contracts (414) 481 Total comprehensive income (expense) for the year 16,043 (53) (765) - 15,225 Change in fair value of fair value through profit or loss investments (1,713) 2,130 Depreciation expense 13,965 11,509 Impairment loss on available-for-sale investments - 15,319 Balance at December 31, 2008 224,300 - (1,879) - 222,421 Management fees incurred on available-for-sale investments 258 - Interest income (3,420) (3,930) Dividend income (378) - Total comprehensive income for the year 17,451 - 6,823 - 24,274 Government grants utilised (1,445) (1,469) Other restricted funds utilised (228) (247) Gain on disposal of property, plant and equipment (34) (10) Transfer to Star fund (843) - - 843 - Utilisation of Star fund (376) - Loss on deregistration of subsidiary -2 Operating cash flows before movements in working capital 56,499 47,333 Utilisation of Star fund - - - (376) (376) Sundry debtors, deposits and prepayments (1,397) (7,583) Sundry creditors 16,093 3,489 Balance at December 31, 2009 240,908 - 4,944 467 246,319 Course and membership fees received in advance (3,430) 9,122 Cash generated from operations 67,765 52,361 Interest received 3,084 4,431 Dividend received 378 - Net cash from operating activities 71,227 56,792 Investing activities Proceeds from disposal of property, plant and equipment 56 11 Proceeds on matured held-to-maturity financial asset 7,000 - Purchase of property, plant and equipment (51,907) (11,684) Purchase of available-for-sale investments - (24,920) Purchase of fair value through profit and loss investments - (10,000) Purchase of held-to-maturity financial assets (8,756) (17,344) Net cash used in investing activities (53,607) (63,937) Financing activities Government grants refunded (Note 15) - (101) Government grants received (Note 15) 120 223 Other restricted funds received (Note 18) 1 377 Net cash from financing activities 121 499 Net increase (decrease) in cash and cash equivalents 17,741 (6,646) Cash and cash equivalents at beginning of year 232,835 239,481 Cash and cash equivalents at end of year 250,576 232,835
06 See accompanying notes to financial statements. See accompanying notes to financial statements. 07 notes to financial statements December 31, 2009
1 GENERAL 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) The Institute (UEN no. S64SS0050A) is registered in the Republic of Singapore with its registered office and principal place of operations at 461 Clementi Amendments to FRS 107 Financial Instruments: Disclosures – Improving Disclosures about Financial Instruments Road, Singapore 599491. It is also subject to the provisions of the Charities Act, Chapter 37. The financial statements are expressed in Singapore dollars. The amendments to FRS 107 expand the disclosures required in respect of fair value measurements and liquidity risk. The Group has elected not to provide comparative information for these expanded disclosures in the current year in accordance with transitional reliefs offered in these amendments. The principal activities of the Institute comprise the provision of membership services to its members, the conduct of short seminars and customised in- company training. It also functions as a Group Corporate Services Centre providing service support to its subsidiaries’ operations. The principal activities of At the date of authorisation of these financial statements, the following FRS that is relevant to the Company was issued but not effective: subsidiaries are disclosed in Note 12 to the financial statements. • Improvements to Financial Reporting Standards (issued in June 2009) The consolidated financial statements of the Group and the statement of financial position, statement of comprehensive income and statement of changes in equity of the Institute for the year ended December 31, 2009 were authorised for issue by the Governing Council at their meeting on March 23, 2010. Consequential amendments were also made to various standards as a result of the new standard.
On January 1, 2009, in order to provide synergy and to facilitate efficient deployment of resources, Singapore Institute of Management acquired from Singapore Management anticipates that the adoption of the above FRSs, INT FRSs and amendments to FRSs that in future periods will not have a material impact on Institute of Management Pte. Ltd. the business undertakings of the Professional Development division. This acquisition has been accounted for using the the financial statements of the Group in the period of their initial adoption. merger accounting method. EDUCATION FUND - The SIM University Education Fund (“Education Fund”) is conferred the Institute of Public Character status. Accordingly, all donations made to the Education Fund will be tax deductible for the donors. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING - The financial statements have been prepared in accordance with the historical cost basis, except for the revaluation of certain STAR FUND - The Skills Training and Rebate Fund (“STAR Fund”) comprised of funds transferred from the general fund for the purpose of offering rebates financial instruments, and are drawn up in accordance with the provisions of the Singapore Societies Act, Cap. 311 and Singapore Financial Reporting to members for membership subscription fees. Any amounts utilised will be transferred from the fund to the income and expenditure. At the end of the Standards (“FRS”). scheme, any excess funds recorded in STAR Fund will be taken directly to the general fund.
ADOPTION OF NEW AND REVISED STANDARDS - In the current financial year, the Group has adopted all the new and revised FRSs and Interpretations OTHER RESTRICTED FUNDS - Sponsorship-Award fund, Singapore IT Federation fund and other funds comprising donations and sponsorships, which of FRS (“INT FRS”) that are relevant to its operations and effective for annual periods beginning on or after January 1, 2009. The adoption of these new/revised are kept intact as capital, are directly taken to the fund in the year in which such donations and sponsorships are received for the purpose of awarding of FRSs and INT FRSs does not result in changes to the Group’s accounting policies and has no material effect on the amounts reported for the current or prior scholarships, medals, prizes to deserving students, developing standards in e-learning and development of program lectures and research for project proof years except as disclosed below. of concept.
FRS 1 – Presentation of Financial Statement (Revised) Income and expenditure arising from the management of the fund is taken directly to Sponsorship-Awards fund, Singapore IT Federation fund and other funds FRS 1 (2008) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and content of the financial account. Income designated to fund specific activities or programmes will be transferred from the fund to income and expenditure to match the designated statements. In addition, the revised Standard requires the presentation of a third statement of financial position at the beginning of the earliest comparative expenditure. Any shortfall of income from the fund for a particular year will be taken directly to the income and expenditure. period presented if the entity applies new accounting policies retrospectively or makes retrospective restatements or reclassifies items in the financial statement.
08 09 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) BASIS OF CONSOLIDATION - The consolidated financial statements incorporate the financial statements of the Institute and enterprises controlled by the Financial assets at fair value through profit or loss (FVTPL) Institute (its subsidiaries). Control is achieved where the Institute has the power to govern the financial and operating policies of an investee enterprise so Financial assets are classified as at FVTPL where the financial asset is either held for trading or it is designated as at FVTPL. as to obtain benefits from its activities. A financial asset is classified as held for trading if: • it has been acquired principally for the purpose of selling in the near future; or The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective • it is a part of an identified portfolio of financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or date of acquisition or up to the effective date of disposal, as appropriate. • it is a derivative that is not designated and effective as a hedging instrument. A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if: Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies used into line with those used by other • such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or members of the Group. • the financial asset forms part of a Group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group’s documented risk management or investment strategy, and information about the grouping is provided internally on All intra-group transactions, balances, income and expenses are eliminated on consolidation. that basis; or • it forms part of a contract containing one or more embedded derivatives, and FRS 39 permits the entire combined contract (asset or liability) to be designated In the Institute’s financial statements, investments in subsidiaries are carried at cost less any impairment in net recoverable value that has been recognised as at FVTPL. in profit or loss. Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in income or expenditure. The net gain MERGER ACCOUNTING - The acquisition of the Professional Development division (“Division”) of Singapore Institute of Management Pte. Ltd. has been or loss recognised in income or expenditure incorporates any dividend or interest earned on the financial asset. Fair value is determined in the manner described accounted for using the merger accounting method as the transaction involved entities under the common control of the ultimate holding entity, Singapore in Note 4. Institute of Management. Accordingly, the Institute’s financial statements had been prepared as if the Division has always been part of the Institute under the merger accounting method as the Division is ultimately controlled by the same controlling party before and after the acquisition, with a continuation of Held-to-maturity investments the risks and benefits to the controlling party that existed prior to the transaction. Bonds with fixed or determinable payments and fixed maturity dates where the Group has a positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue FINANCIAL INSTRUMENTS - Financial assets and financial liabilities are recognised on the Group’s statement of financial position when the Group becomes recognised on an effective yield basis. a party to the contractual provisions of the instrument. Available-for-sale financial assets Financial assets Certain investments held by the Group are classified as being available for sale and are stated at fair value. Gains and losses arising from changes in fair Investments are recognised and de-recognised on a trade date where the purchase or sale of an investment is under a contract whose terms require delivery value are recognised directly in other comprehensive income with the exception of impairment losses, interest calculated using the effective interest method of the investment within the timeframe established by the market concerned, and are initially measured at fair value plus transaction costs. and foreign exchange gains and losses on monetary assets which are recognised directly in income or expenditure. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is included in income or expenditure for the Other financial assets are classified into the following specified categories: financial assets at “fair value through profit or loss”, “held-to-maturity investments”, period. Dividends on available-for-sale equity instruments are recognised in income or expenditure when the Group’s right to receive payments is established. “available-for-sale” financial assets and “loans and receivables”. The classification depends on the nature and purpose of financial assets and is determined The fair value of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the time of initial recognition. at the end of reporting date. The change in fair value attributable to translation differences that result from a change in amortised cost of the asset is recognised in income or expenditure, and other changes are recognised in other comprehensive income.
10 11 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) Effective interest method Derecognition of financial assets The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including all fees on points paid or substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it instrument, or where appropriate, a shorter period. Income and expense is recognised on an effective interest basis for debt instruments. may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. Sundry debtors Sundry debtors that have fixed or determinable payments that are not quoted in an active market are classified as “loans and receivables”. Sundry debtors Financial liabilities are initially measured at fair value and subsequently measured at amortised cost using the effective interest method less impairment. Interest is recognised Financial liabilities by applying the effective interest rate method, except for short-term receivables when the recognition of interest would be immaterial. Other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method, with interest expense recognised on an effective yield basis. Impairment of financial assets Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at the end of each reporting date. Financial Derecognition of financial liabilities assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. the estimated future cash flows of the financial asset have been impacted. Derivative financial instruments For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of The Group uses derivative financial instruments such as forward foreign exchange contracts to manage its exposure to foreign exchange rate risk. estimated future cash flows, discounted at the original effective interest rate. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of sundry debtors where the of each reporting period. The resulting gain or loss is recognised in income or expenditure immediately unless the derivative is designated and effective as a carrying amount is reduced through the use of an allowance account. When a sundry debtor is uncollectible, it is written off against the allowance hedging instrument, in which event the timing of the recognition in the income and expenditure statements depends on the nature of the hedge relationship. account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance The Group designates certain derivatives as hedges of highly probable forecast transactions. account are recognised in income or expenditure. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can expected to be realised or settled within 12 months. Other derivatives are presented as current assets or current liabilities. be related objectively to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed through income or expenditure to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
In respect of available-for-sale equity instruments, any subsequent increase in fair value after an impairment loss, is recognised directly in other comprehensive income.
12 13 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) Hedge accounting PROPERTY, PLANT AND EQUIPMENT - Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment The Group and Institute designate certain hedging instruments which includes forward foreign exchange contracts as cash flow hedges. losses. Artifacts and paintings included in office equipment, furniture and fittings are not depreciated.
At the inception of the hedge relationship the entity documents the relationship between the hedging instrument and hedged item, along with its risk management Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, using the straight-line method, on the following bases: objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting changes in fair values or cash flows of the Leasehold land, building and improvements 2% to 5.55% hedged item. Office premises 2% Office equipment, furniture and fittings (excluding artifacts and paintings) 25% Note 19 contains details of the fair values of the derivative instruments used for hedging purposes. Movements in the hedging reserve are also detailed in Motor vehicles 20% the statements of changes in equity. Computers 33.33%
Cash flow hedge Fully depreciated assets still in use are retained in the financial statements. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in income or expenditure as part of other gains and losses. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis. Amounts recognised in other comprehensive income are recycled in income or expenditure in the periods when the hedged item is recognised in statement of comprehensive income. No depreciation is charged on construction-in-progress.
Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds no longer qualifies for hedge accounting. Any cumulative gain or loss deferred in reserve at that time remains in equity and is recognised when the forecast and the carrying amounts of the asset and is recognised in the income or expenditure. transaction is ultimately recognised in income or expenditure. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was deferred in reserve is recognised immediately in income or expenditure. IMPAIRMENT OF ASSETS - At the end of each reporting period, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to LEASES - Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates other leases are classified as operating leases. the recoverable amount of the cash-generating unit to which the asset belongs.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless another systematic basis is more Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted representative of the time pattern in which use benefit derived from the leased asset is diminished. Initial direct costs incurred in negotiating and arranging 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. an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash- Rentals payable under operating leases are charged to income or expenditure on a straight-line basis over the term of the relevant lease unless another generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in income or expenditure, unless the relevant asset is systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. operating leases are recognised as an expense in the period in which they are incurred. 14 15 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable RETIREMENT BENEFIT COSTS - Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. Payments made amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been to state-managed retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments to defined contribution plans where recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in income or expenditure. the Group’s and Institute’s obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan.
PROVISIONS - Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the EMPLOYEE LEAVE ENTITLEMENT - Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. estimated liability for annual leave as a result of services rendered by employees up to the end of the reporting period.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, DONATIONS - Donations given are charged to income or expenditure when incurred. taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION - The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). The consolidated financial statements of the Group and the statement When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an of financial position, statement of comprehensive income and statement of changes in equity of the Institute are presented in Singapore dollars, which is asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. the functional currency of the Institute, and the presentation currency for the consolidated financial statements.
GOVERNMENT GRANTS - These represent contributions made by the government for the Group. Government grants received for the purchase of property, In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency are recorded at the rates plant and equipment or to meet operating expenses are taken to the government grants received in advance account. Grants for the purpose of property, of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated plant and equipment are recognised in income or expenditure over the periods necessary to match the depreciation of the assets purchased with the related at the rates prevailing at the end of the reporting period. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated grants. Government grants to meet operating expenses are recognised as income in the same year the expenses are incurred. at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. REVENUE RECOGNITION - Revenue is measured at the fair value of the consideration received or receivable. Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in income or expenditure for the period. Course, conference and consultancy fees are recognised over the duration of the programs. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in income or expenditure for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised in other comprehensive income. For such Membership fees are recognised on a straight line basis over the membership term. non-monetary items, any exchange component of that gain or loss is also recognised in other comprehensive income.
Revenue from the rendering of services that are of a short duration is recognised when the services are completed. CASH AND CASH EQUIVALENTS - Cash and cash equivalents comprise cash on hand and at bank and fixed deposits which are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. Interest income is recognised on an accrual basis, by reference to the principal outstanding and at the effective interest rate applicable.
Dividend income is recognised when the shareholders’ rights to receive payment have been established.
Rental income is recognised on a straight-line basis over the term of the relevant lease.
16 17 3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY 3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (cont’d) In the application of the Group’s accounting policies, which are described in Note 1, management is required to make judgements, estimates and assumptions (ii) Key sources of estimation uncertainty about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. of causing a material adjustment to carrying amounts of assets and liabilities within the next financial year are as discussed below.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the Fair value of financial instruments estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These techniques involve uncertainties and require assumptions and judgements regarding prepayments, credit risks and discount rates. Changes in these assumptions will significantly (i) Critical judgements in applying the Group’s accounting policies affect the estimated value of the financial instruments. The Group uses a variety of methods and makes assumptions that are based on market conditions Management is of the opinion that any instances of application of judgements are not expected to have a significant effect on the amounts recognised in existing at the end of the reporting period. Quoted market prices or dealer quotes for similar instruments are some of the common techniques used to the financial statements except as follows: calculate the fair value of these instruments.
Classification of held-to-maturity investments Useful lives of plant and equipment The Group follows the guidance of FRS 39 on classifying non-derivative financial assets with fixed or determinable payment and fixed maturity as held- Management exercises their judgement in estimating the useful lives of property, plant and equipment and reviews the useful lives at the end of each annual to-maturity. This classification requires significant judgement. In making this judgement, the Group evaluates its intention and ability to hold such investments reporting period. The total carrying amount of property, plant and equipment of the Group and Institute is $137,512,000 (2008 : $99,592,000) and $123,740,000 to maturity. If the Group fails to hold these investments to maturity other than for the specific circumstances, for example, selling an insignificant amount (2008 : $87,929,000) respectively. close to maturity, it will be required to reclassify the entire class as available for sale. The investment would therefore be measured at fair value and no longer at amortised cost.
Impairment of investments In 2008, management has concluded that the fall in fair values of certain of its investments was a ‘significant or prolonged decline in fair value of those instruments below its cost’ as management believed that the fall was brought about by the continuous decline in the global debt and equity markets then.
In making its judgement, management considered the following factors, amongst others: • Cost of a specific investment relative to its current fair value; • The length of time fair value has remained lower than cost; • The market capitalisation of the investee being lower than book value of net assets; • The investee announcing a change in business model, restructuring, discontinued operations etc; and • Increase in investees’ cost of capital.
Consequently, impairment losses of $15,319,000 and $11,076,000 relating to the Group and Institute respectively were recognised in 2008.
18 19 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d) a) Categories of financial instruments b) Financial risk management policies and objectives The following table sets out the financial instruments as at the end of the reporting period: The Group has documented financial risk management policies. These policies set out the Group’s overall business strategies and its risk management philosophy. The Group’s overall financial risk management programme seeks to minimise potential adverse effects of financial performance of the Group. Group Institute The Governing Council provides written principles for overall financial risk management and written policies covering specific areas, such as market risk 2009 2008 2009 2008 (including foreign exchange risk, interest rate risk, and equity price risk), credit risk, liquidity risk, cash flow interest rate risk, use of derivative financial $’000 $’000 $’000 $’000 instruments and investing excess cash. Such written policies are reviewed annually by the Governing Council and periodic reviews are undertaken to ensure that the Group’s policy guidelines are complied with. Risk Management is carried out by Treasury Department under the policies approved by the Governing Financial assets Council. Cash and cash equivalents 250,576 232,835 96,255 111,290 Loans and receivables 8,876 8,174 6,291 2,380 There has been no significant change to the manner in which it manages and measures the risk. Market risk exposures are measured using sensitivity Forward foreign exchange contracts 1,067 557 4 403 analysis indicated below. Financial assets at fair value through profit or loss 9,583 7,870 7,591 6,165 Available-for-sale-investments 55,902 46,621 39,355 32,716 i) Foreign exchange risk management Held-to-maturity investments 26,100 24,344 16,059 15,307 A portion of the Group’s and the Institute’s available-for-sale investments and expenses are denominated in United States dollar, Sterling pound and Australian dollar and therefore is exposed to foreign exchange risk. Financial liabilities Sundry creditors 40,251 24,201 22,974 12,370 At the end of the reporting period, the carrying amounts of monetary assets and monetary liabilities denominated in currencies other than the respective Forward foreign exchange contracts 73 3,058 - - group entities’ functional currencies are as follows:
Group Institute Assets Liabilities Assets Liabilities 2009 2008 2009 2008 2009 2008 2009 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Australian dollar 950 1,192 891 706 - - - - United States dollar 29,547 23,935 41 330 21,398 17,306 - 11 Sterling pound 1,038 1,050 129 90 - - - -
Entities in the Group use forward foreign exchange contracts to hedge their exposure to foreign currency risk in the local reporting currency. The Treasury Department is responsible for hedging the net position in each borrowing currency.
Further details of the forward foreign exchange contracts are found in Note 8 to the financial statements.
20 21 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d) 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d) i) Foreign exchange risk management (cont’d) ii) Interest rate risk management (cont’d) Foreign currency sensitivity Interest rate sensitivity analysis The sensitivity rate used when reporting foreign currency risk is 10%, which is the change in foreign exchange rate that management deems reasonably The sensitivity analysis has been determined based on the exposure to interest rates for cash and cash equivalent balances at the end of the reporting possible which will affect outstanding foreign currency denominated monetary items at period end. period and the stipulated change taking place at the beginning of the respective financial year. A 100 basis point increase or decrease represents management’s assessment of the possible change in interest rate. If the relevant foreign currency strengthens by 10% against the functional currency of each group entity, without considering the effect of the derivative financial instruments, profit or loss will increase (decrease) by: If interest rates had been 100 basis points higher/lower with all the other variables held constant, the Group’s and Institute’s net surplus would increase/ decrease by approximately $2.5 million and $1.0 million respectively (2008 : $2.3 million and $1.1 million respectively). Australian United States Sterling dollar impact dollar impact pound impact iii) Credit risk 2009 2008 2009 2008 2009 2008 The Group and Institute are not exposed to significant credit risk as most of its fees are received in advance. In 2008 and 2009, the Group’s sundry $’000 $’000 $’000 $’000 $’000 $’000 debtors comprise mainly of grant receivable from Ministry of Education.
Group Cash and cash equivalents are held with reputable financial institutions. Profit or loss 6 49 2,951 2,361 91 96 iv) Liquidity risk Institute The Group maintains sufficient cash and cash equivalents, and internally generated cash flows to finance its activities. Profit or loss - - 2,140 1,730 - - The Group’s and Institute’s derivative financial instruments comprise foreign exchange forward contracts with net mark-to market gain of $994,000 If the relevant foreign currency weakens by 10% against the functional currency of each group entity, there will be an equal and opposite impact on (2008 : net mark-to market loss of $2,501,000) and net mark-to market gain of $4,000 (2008 : net mark-to market gain $403,000) as at December 31, profit and loss. 2009 respectively with contracted gross cash flows due within 1 year (2008 : due within 1 year).
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk as the year end exposure does not reflect Non-derivative financial assets the exposure during the year. The following table details the expected maturity for non-derivative financial assets. The tables below have been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Group and the Institute anticipate ii) Interest rate risk management that the cash flow will occur in a different period. The adjustment column represents the possible future cash flows attributable to the instrument included The Group is exposed to interest rate risk through the impact of rate changes on interest bearing assets. The Group maintains its cash and cash in the maturity analysis which are not included in the carrying amount of the financial asset on the statement of financial position. equivalents and held-to-maturity financial assets in fixed rate instruments and does not have any significant interest bearing liabilities.
All financial assets and liabilities at year end bear no interest except for cash and fixed deposits and held-to-maturity financial assets. The average interest rate on held-to-maturity financial asset is disclosed in Note 10.
22 23 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d) 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d) iv) Liquidity risk (cont’d) iv) Liquidity risk (cont’d) Fixed rate Fixed rate Less 6 months More Non- Less 6 months More Non- than to 12 than 12 interest than to 12 than 12 interest 6 months months months bearing Total 6 months months months bearing Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Group Institute 2009 2009 Cash and cash equivalents 236,154 14,408 - 14 250,576 Cash and cash equivalents 93,146 3,100 - 9 96,255 Loans and receivables 626 80 - 8,170 8,876 Loans and receivables 339 - - 5,952 6,291 Fair value through profit or loss - 9,583 - - 9,583 Fair value through profit or loss - 7,591 - - 7,591 Available-for-sale financial assets - - - 55,902 55,902 Available-for-sale financial assets - - - 39,355 39,355 Held to maturity financial assets 8,020 11,306 6,774 - 26,100 Held to maturity financial assets 5,020 4,265 6,774 - 16,059 Total 244,800 35,377 6,774 64,086 351,037 Total 98,505 14,956 6,774 45,316 165,551
2008 2008 Cash and cash equivalents 232,835 - - - 232,835 Cash and cash equivalents 111,290 - - - 111,290 Loans and receivables 302 - - 7,872 8,174 Loans and receivables 175 - - 2,205 2,380 Fair value through profit or loss 4,262 - 3,608 - 7,870 Fair value through profit or loss 2,557 - 3,608 - 6,165 Available-for-sale financial assets - - - 46,621 46,621 Available-for-sale financial assets - - - 32,716 32,716 Held to maturity financial assets 6,999 - 17,345 - 24,344 Held to maturity financial assets 2,999 - 12,308 - 15,307 Total 244,398 - 20,953 54,493 319,844 Total 117,021 - 15,916 34,921 167,858
Non-derivative financial liabilities The Group’s and Institute’s financial liabilities are substantially non-interest bearing and due within 1 year.
24 25 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d) 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d) v) Price risk management vi) Fair value of financial assets and financial liabilities (cont’d) The Group is exposed to risks arising from financial assets at fair value through profit and loss and available-for-sale equity investments. Available- The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. for-sale equity investments are held for strategic rather than trading purposes. The Group does not trade available for sale investments. The fair value hierarchy has the following levels: (a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); Further details of these investments can be found in Notes 9 and 11 to the financial statements. (b) 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 2); and Price sensitivity analysis (c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). The sensitivity analyses below have been determined based on the exposure to price risks at the reporting date. In respect of financial assets at fair value through profit or loss, if prices had been 10% higher/lower, the Group’s and Institute’s net surplus for the year ended December 31, 2009 would Financial instruments measured at fair value increase/decrease by $958,000 (2008 : $787,000) and $759,000 (2008 : $616,000) respectively. Total Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 In respect of available-for-sale equity investments, if the prices had been 10% higher/lower, the Group’s and Institute’s fair value reserves would increase/decrease by $5,590,000 (2008 : $4,662,000) and $3,936,000 (2008 : $3,272,000) respectively. Financial Assets Group vi) Fair value of financial assets and financial liabilities 2009 Other than the financial assets at fair value through profit and loss, held-to-maturity financial assets and available-for-sale investments, the carrying Financial assets at fair value through profit or loss: amounts of financial assets and liabilities reported in the statement of financial position approximate their respective fair values due to the relatively - Other financial assets at fair value through profit or loss 9,583 - 9,583 - short-term maturity of these financial instruments. The fair value of financial assets at fair value through profit or loss, held-to-maturity and available- - Forward foreign exchange contracts 1,067 1,067 - - for-sale investments financial assets are disclosed in Notes 9, 10 and 11 respectively. 10,650 1,067 9,583 - Available-for-sale investments: The fair values of financial assets and financial liabilities are determined as follows: - Funds managed by fund managers 50,777 - 50,777 - - Quoted preference shares 5,125 5,125 - - i) the fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined 55,902 5,125 50,777 - with reference to quoted market prices; ii) the fair values of other financial assets and financial liabilities (excluding derivative financial instruments) are determined in accordance with generally Total 66,552 6,192 60,360 - accepted pricing models based on discounted cash flow analysis; and iii) the fair value of derivative financial instruments are calculated using quoted prices. Where such prices are not available, discounted cash flow analysis is used, based on the applicable yield curve of the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives, where applicable.
26 27 4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d) 5 RELATED COMPANY AND RELATED PARTY TRANSACTIONS vi) Fair value of financial assets and financial liabilities (cont’d) Many of the Institute’s transactions and arrangements are between members of the Group and the effect of these on the basis determined between the parties Financial instruments measured at fair value is reflected in these financial statements. The intercompany balances are unsecured, interest-free and repayable on demand unless otherwise stated. Total Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Transactions between the Institute and its subsidiaries, which are related companies of the Institute, have been eliminated on consolidation.
Financial Assets Compensation of key management personnel Institute The remuneration of key management during the year is as follows: 2009 Financial assets at fair value through profit or loss: Group Institute - Other financial assets at fair value through profit or loss 7,591 - 7,591 - 2009 2008 2009 2008 - Forward foreign exchange contracts 4 4 - - $’000 $’000 $’000 $’000 7,595 4 7,591 - Short-term benefits 8,882 8,454 2,904 2,126 Available-for-sale investments: Post-employment benefits 321 333 129 98 - Funds managed by fund managers 36,282 - 36,282 - 9,203 8,787 3,033 2,224 - Quoted preference shares 3,073 3,073 - - 39,355 3,073 36,282 - The remuneration of key management is determined by the Compensation & Establishment Committee of the Institute having regard to the performance of individuals and market trends. Total 46,950 3,077 43,873 -
Financial Liabilities 2009 The Group and Company have no significant financial liabilities carried at fair value in 2009.
There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the financial year.
c) Capital risk management policies and objectives The Group reviews its capital structure at least annually to ensure that the Group will be able to continue as a going concern. The capital structure of the Group comprises only of funds and reserves. The Group’s overall strategy remains unchanged from 2008.
28 29 5 RELATED COMPANY AND RELATED PARTY TRANSACTIONS (cont’d) 6 CASH AND CASH EQUIVALENTS (cont’d) Number of key management in remuneration bands for the Group is shown below. Key management personnel comprises chief executive officers, directors Fixed and savings deposits bear interest at average rates ranging from 0.05% to 1.97% (2008 : 0.20% to 7.30%) per annum and are for a tenure of approximately and deans. 1 day to 12 months (2008 : 3 to 6 months). 2009 2008 $’000 $’000 The Group’s and Institute’s cash and cash equivalents that are not denominated in the functional currencies of the respective entities are as follows:
$900,001 - $950,000 1- Group Institute $850,001 - $900,000 -1 2009 2008 2009 2008 $550,001 - $600,000 -1 $’000 $’000 $’000 $’000 $500,001 - $550,000 11 $450,001 - $500,000 12 Australian dollar 950 1,192 - - $400,001 - $450,000 1- United States dollar 35 2 2 2 $350,001 - $400,000 11 Sterling pound 1,038 1,038 - - $300,001 - $350,000 31 $250,001 - $300,000 31 $200,001 - $250,000 812 7 SUNDRY DEBTORS, DEPOSITS AND PREPAYMENTS $150,001 - $200,000 96 $100,001 - $150,000 78 Group Institute $100,000 and below 3 3 2009 2008 2009 2008 38 37 $’000 $’000 $’000 $’000
Membership debtors 5- 5- 6 CASH AND CASH EQUIVALENTS Subsidiary (Note 12) - - 1,940 1,928 Group Institute Course fee receivable (trade) 1,610 2,162 817 - 2009 2008 2009 2008 Staff loans 35 58 31 55 $’000 $’000 $’000 $’000 Interest receivable 638 302 339 175 Other debtors 6,588 5,668 3,159 222 Fixed and savings deposits 236,153 217,564 90,762 107,870 8,876 8,190 6,291 2,380 Cash and bank balances 14,423 15,271 5,493 3,420 Less: Allowance for doubtful debts - (16) - - 250,576 232,835 96,255 111,290 8,876 8,174 6,291 2,380 Prepayments 4,680 3,635 435 336 Cash and bank balances comprise cash held and short-term bank deposits with an original maturity of within 12 months. The carrying amounts of these assets Deposits 59 57 41 18 approximate their fair values. Total 13,615 11,866 6,767 2,734
30 31 7 SUNDRY DEBTORS, DEPOSITS AND PREPAYMENTS (cont’d) 7 SUNDRY DEBTORS, DEPOSITS AND PREPAYMENTS (cont’d) The table below is an analysis of the Group’s and Institute’s sundry debtors as at December 31: Movement in allowance:
Group Institute Group 2009 2008 2009 2008 2009 2008 $’000 $’000 $’000 $’000 $’000 $’000
Not past due and not impaired 6,264 6,557 5,805 2,159 At beginning of year 16 - Past due but not impaired (i) and (iii) 2,612 1,617 486 221 (Reversal) Charged to income and expenditure (16) 16 8,876 8,174 6,291 2,380 At end of year - 16 Impaired receivables - collectively assessed (ii) and (iii) -16 - - Less: Provision for impairment - (16) - - The Group’s and Institute’s sundry debtors and deposits that are not denominated in the functional currencies of the respective entities are as follows: ---- Group Institute Total sundry debtors, net 8,876 8,174 6,291 2,380 2009 2008 2009 2008 $’000 $’000 $’000 $’000
(i) Aging of the Group's and Institute’s sundry debtors which are past due but not impaired Australian dollar 4 - - - United States dollar 2,286 1,699 - - < 90 days 1,261 932 213 193 Sterling pound -32 - - > 90 days 1,351 685 273 28 Malaysian ringgit - 39 - - Total 2,612 1,617 486 221
(ii) These amounts are stated before any deduction for impairment losses. (iii) These receivables are not secured by any collateral or credit enhancements.
32 33 8 FORWARD FOREIGN EXCHANGE CONTRACTS 8 FORWARD FOREIGN EXCHANGE CONTRACTS (cont’d) At December 31, 2009, the fair value of the Group’s currency derivatives is estimated to be approximately $1,067,000 recognised as derivative assets and Group Institute $73,000 recognised as derivative liabilities (2008 : $557,000 recognised as derivative assets and $3,058,000 recognised as derivative liabilities). These fair Assets Liabilities Assets Liabilities values are measured using quoted forward exchange rates. 2009 2008 2009 2008 2009 2008 2009 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’0000 At December 31, 2009, the fair value of the Institute’s currency derivatives is estimated to be approximately $4,000 recognised as derivative assets (2008 : $403,000 recognised as derivative assets). These fair values are measured using quoted forward exchange rates. Forward foreign exchange contracts 1,067 557 73 3,058 4 403 - - The fair value of the Group’s currency derivatives that are designated and effective as cash flow hedges amounting to a gain of $1,061,000 (2008 : loss of The Group and Institute utilise currency derivatives to hedge significant future transactions and cash flow. The Group and Institute use forward foreign exchange $2,020,000) has been recognised in other comprehensive income. The fair value of the Group’s and Institute’s currency derivatives that do not qualify for hedge contracts in the management of its exchange rate exposure. The instruments purchased are denominated in the currency of the Group’s and Institute’s principal accounting of $67,000 (loss) and $4,000 (gain) respectively (2008 : $481,000 (loss) and $403,000 (gain) respectively) has been taken to income or expenditure. markets.
At the end of the reporting period, the total notional amount of outstanding forward foreign exchange contracts to which the Group and Institute are committed 9 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS are as follows: Group Institute Group Institute Issue date Maturity dates 2009 2008 2009 2008 2009 2008 2009 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Credit linked notes April 9, 2008 to July 31, 2011 to Buy AUD 14,500 17,300 - - July 31, 2008 March 20, 2013 9,583 7,870 7,591 6,165 Sell SGD 16,845 20,099 - - The credit linked notes have nominal values amounting to $10,000,000 with coupon ranging from 4.5% to 5.1% per annum. Their maturity dates range from Buy SGD 19,925 22,070 19,925 22,070 July 2011 to March 2013. The average effective interest rate of the credit linked notes ranges from 4.5% to 5.1% per annum. Sell USD 14,200 15,000 14,200 15,000 The fair values of the credit link notes are determined based on estimated valuations derived from market quotations or from proprietary models that take Buy GBP 600 - - - into consideration estimates about relevant present and future market conditions. Sell SGD 1,429 - - -
Buy USD 3,220 - - - Sell SGD 4,493 - - -
34 35 10 HELD-TO-MATURITY FINANCIAL ASSET 11 AVAILABLE-FOR-SALE INVESTMENTS
Group Institute Group Institute 2009 2008 2009 2008 2009 2008 2009 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Quoted debt securities, at amortised cost: Funds managed by fund managers, at fair value 50,777 41,990 36,282 29,944 Current 19,326 6,999 9,285 3,000 Non-current 6,774 17,345 6,774 12,307 Quoted preference shares, at fair value 5,125 4,631 3,073 2,772 26,100 24,344 16,059 15,307 55,902 46,621 39,355 32,716
The debt securities comprise bonds issued by financial institutions and public listed companies. As at December 31, 2009, the debt securities have nominal The investments above offer the Group the opportunity for return through dividend income, interest income and fair value gains. They have no fixed maturity values amounting to $26.4 million (2008 : $24.7 million) with coupon rates ranging from 3.0% to 3.78% (2008 : 2.8% to 3.78%) per annum and maturity dates or coupon rate. The fair values of the quoted funds are determined as the quoted fund net asset values provided by the fund managers and banks at the ranging from February 2010 to November 2017 (2008 : May 2009 to November 2017) . The average effective interest rate of the debt securities ranges from last market day of the financial year. The net asset values approximate the fair values as the funds comprise mainly financial assets at fair value through profit 2.38% to 3.78% (2008 : 2.38% to 2.851%) per annum. or loss and other monetary assets.
As at December 31, 2008 and 2009, the Institute holds a OCBC bond with a nominal value amounting to $7 million with a fixed coupon rate of 3.78% for the The fair values of the quoted preference shares are determined based on the last traded price on the Singapore Stock Exchange at the end of the reporting first 5 years to November 28, 2012. If the debt security is not called at the Step-up Date on November 28, 2012, it will bear interest at a floating rate equal period. In 2008, the Group’s and Institute’s investments available-for-sale investments suffered an impairment loss of $15,319,000 and $11,076,000 respectively. to aggregate to the three-month Swap Offer Rate and the initial credit spread of 0.72% per annum plus 1% per annum. No such impairment loss was recognised during the current financial year.
All the bonds carry a fixed coupon rate except for the nominal $7 million OCBC bond. The fair values of the securities are provided by banks employing The Group’s and Institute’s available-for-sale investments that are not denominated in the functional currencies of the respective entities are as follows: generally market accepted valuation parameters and techniques. Group Institute The debt securities have fair value amounting to $26,568,000 (2008 : $24,344,000) and $16,466,000 (2008 : $15,307,000) at the Group and Institute level 2009 2008 2009 2008 respectively. $’000 $’000 $’000 $’000
The held-to-maturity financial assets are denominated in the respective entities’ functional currencies. United States dollar 29,512 23,933 21,396 17,304
36 37 12 SUBSIDIARIES 13 PROPERTY, PLANT AND EQUIPMENT Institute 2009 2008 Office $’000 $’000 Leasehold land, equipment, building and Office furniture Motor Construction Unquoted equity shares, at cost 2,500 2,500 improvements premises and fittings vehicles Computers in-progress Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 Details of the Institute’s subsidiaries at December 31, 2009 are as follows: Group Country of incorporation Proportion of ownership Cost: (or registration) interest and At January 1, 2008 133,417 2,073 16,611 493 25,908 - 178,502 Name of subsidiary and operation voting power Principal activities Additions 165 - 2,485 - 7,719 1,315 11,684 2009 2008 Disposals - - (145) - (578) - (723) %% At December 31, 2008 133,582 2,073 18,951 493 33,049 1,315 189,463 Additions 83 - 5,161 2 9,925 36,736 51,907 Held by the Institute Disposals - - (1,937) - (665) - (2,602) Singapore Institute of Singapore 100 100 Engaged in higher and At December 31, 2009 133,665 2,073 22,175 495 42,309 38,051 238,768 Management Pte. Ltd. (b) continuing education (Formerly known as SIM Pte. Ltd.) Accumulated depreciation: At January 1, 2008 47,154 1,326 9,786 262 20,556 - 79,084 SIM University (a) (b) Singapore 100 100 Engaged in the advancement of Depreciation for the year 4,743 53 2,855 87 3,771 - 11,509 education and dissemination of Disposals - - (144) - (578) - (722) knowledge, the promotion At December 31, 2008 51,897 1,379 12,497 349 23,749 - 89,871 of research and the conferring Depreciation for the year 4,742 42 3,531 82 5,568 - 13,965 and awarding of degrees, Disposals - - (1,930) - (650) - (2,580) diplomas and certificates At December 31, 2009 56,639 1,421 14,098 431 28,667 - 101,256
(a) SIM University is incorporated as a company limited by guarantee on April 14, 2005. SIM University’s constitution states that the Institute’s Governing Carrying amount: Council is empowered to appoint or remove any member of SIM University’s Board of Trustees and in the event of winding up or dissolution of SIM University, At December 31, 2008 81,685 694 6,454 144 9,300 1,315 99,592 after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the members of SIM University, but shall be given or transferred to the Institute. Accordingly, the Institute is deemed to have control over SIM University. At December 31, 2009 77,026 652 8,077 64 13,642 38,051 137,512
(b) Audited by Deloitte & Touche LLP, Singapore.
38 39 13 PROPERTY, PLANT AND EQUIPMENT (cont’d) 14 SUNDRY CREDITORS
Office Group Institute Leasehold land, equipment, 2009 2008 2009 2008 building and Office furniture Motor Construction $’000 $’000 $’000 $’000 improvements premises and fittings vehicles Computers in-progress Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 Subsidiary (Note 12) - - 2,418 6,640 Deposits 320 277 169 167 Institute Accruals and other payables 40,251 24,201 20,556 5,730 Cost: 40,571 24,478 23,143 12,537 At January 1, 2008 132,597 2,073 8,728 130 13,850 - 157,378 Additions 165 - 1,504 - 2,415 1,315 5,399 Accruals principally comprise amounts outstanding for ongoing costs. Disposals - - (30) - (453) - (483) At December 31, 2008 132,762 2,073 10,202 130 15,812 1,315 162,294 The Group’s and Institute’s sundry creditors that are not denominated in the functional currencies of the respective entities are as follows: Additions 83 - 3,978 2 2,629 36,736 43,428 Disposals - - (1,890) - (561) - (2,451) Group Institute At December 31, 2009 132,845 2,073 12,290 132 17,880 38,051 203,271 2009 2008 2009 2008 $’000 $’000 $’000 $’000 Accumulated depreciation: At January 1, 2008 46,709 1,326 7,516 92 12,578 - 68,221 Australian dollar 891 706 - - Depreciation for the year 4,743 53 671 15 1,144 - 6,626 United States dollar 41 330 - 11 Disposals - - (29) - (453) - (482) Sterling pound 129 91 - - At December 31, 2008 51,452 1,379 8,158 107 13,269 - 74,365 Depreciation for the year 4,742 42 1,021 9 1,803 - 7,617 Disposals - - (1,890) - (561) - (2,451) At December 31, 2009 56,194 1,421 7,289 116 14,511 - 79,531
Carrying amount: At December 31, 2008 81,310 694 2,044 23 2,543 1,315 87,929
At December 31, 2009 76,651 652 5,001 16 3,369 38,051 123,740
40 41 15 GOVERNMENT GRANTS RECEIVED IN ADVANCE 16 EDUCATION FUND The SIM University Education Fund is set up to establish, operate, maintain and promote SIM University as a private university. The SIM University Education Ministry Spring Fund has been conferred the Institute of Public Character status. of Education Singapore Total $’000 $’000 $’000 The following represents the SIM University Education Fund:
Group Group Balance at January 1, 2008 24,903 101 25,004 2009 2008 Funds received 223 - 223 $’000 $’000 Funds refunded - (101) (101) Utilised during the year (1,469) - (1,469) Donation received from related company 18,020 20,440 Balance at December 31, 2008 23,657 - 23,657 Donation received from external parties 64 68 Funds received 120 - 120 Interest income 644 488 Utilised during the year (1,445) - (1,445) Exchange loss - (2) Balance at December 31, 2009 22,332 - 22,332 Fund manager rebates received 44 53 Dividend income 130 - Institute Other income 465 - Balance at January 1, 2008 24,650 101 24,751 19,367 21,047 Funds refunded - (101) (101) Less: Utilised during the year (1,306) - (1,306) Course expenditure 1,639 768 Balance at December 31, 2008 23,344 - 23,344 Staff and manpower costs 2,311 2,069 Utilised during the year (1,306) - (1,306) Depreciation 4,120 3,522 Balance at December 31, 2009 22,038 - 22,038 Others 941 5,911 9,011 12,270 The grants received from Spring Singapore related to grants received for the purpose of supporting student ventures. The amount was refunded to Spring Singapore in 2008 as the scheme was abolished in that year. Net surplus for the year 10,356 8,777
Other comprehensive income for the year Available-for-sale investments 2,716 (350)
Total comprehensive income for the year 13,072 8,427
42 43 16 EDUCATION FUND (cont’d) 17 STAR FUND The Skills and Training Rebate Fund (“STAR Fund”) comprised of funds transferred from the general fund for the purpose of offering rebates to members for Group membership subscription fee. 2009 2008 $’000 $’000 Group and Institute Education fund at January 1 2009 Accumulated surplus 66,891 58,114 $’000 Fair value reserve (777) (427) Transfer from general fund during the year 843 Education fund at December 31 79,186 66,114 Utilised during the year (376) Balance at December 31, 2009 467 Represented by: Current assets Fixed deposits 41,610 33,249 18 OTHER RESTRICTED FUNDS Other receivables 160 32 Other restricted funds comprise the following funds: Financial assets at fair value through profit or loss 1,992 1,705 Held-to-maturity financial assets 10,041 3,999 Name of fund Purpose Forward foreign exchange contracts - 154 53,803 39,139 Research and development fund For the purpose of providing scholarship to students and to fund research activities.
Non-current assets Sponsorship awards fund Donations and sponsorships received for the purpose of awarding of scholarships, medals, prizes to Available-for-sale investments 16,547 13,906 deserving students. Held-to-maturity financial assets - 5,038 Property, plant and equipment 9,234 8,031 Singapore IT Federation (“SITF”) fund Fund received for the purpose of developing standards in e-learning. 25,781 26,975 Less: Current liabilities Other funds – Spring Singapore and Fund received for the purpose of course development for Biomedical Sciences Proof of Concept Scheme. Other payables 398 - Economic Development Board
Total net assets 79,186 66,114
44 45 18 OTHER RESTRICTED FUNDS (cont’d) 19 HEDGING RESERVE Group Institute Research and Sponsorship 2009 2008 2009 2008 development awards SITF Other $’000 $’000 $’000 $’000 fund fund fund funds Total $000 $000 $000 $000 $000 Unrealised gain (loss) on outstanding forward foreign exchange contracts 1,061 (2,020) - -
Group The fair values of currency derivatives of the Group and Institute that are designated and effective as cash flow hedges amounted to a gain of $1,061,000 Balance at January 1, 2008 242 98 132 - 472 and $Nil (2008 : Loss of $2,020,000 and $Nil) respectively and these have been deferred in hedging reserve. Received during the year - - - 377 377 Utilised during the year - (1) (132) (114) (247) The hedging reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss on Balance at December 31, 2008 242 97 - 263 602 the hedge recognised in other comprehensive income and accumulated hedging reserves is reclassified to income or expenditure when the hedged transaction Received during the year -1--1 impacts the income or expenditure. Utilised during the year - (2) - (226) (228) Balance at December 31, 2009 242 96 - 37 375 Gains and losses transferred from equity into income or expenditure during the period are included in the following items in income or expenditure: Group Institute Represented by: 2009 2008 2009 2008 Cash and bank balances: $’000 $’000 $’000 $’000 At December 31, 2008 242 97 - 263 602 Course expenditure (50) - - - At December 31, 2009 242 96 - 37 375 Other gains or losses - 385 - 53
At the end of the reporting period, the total notional amount of outstanding forward foreign exchange contracts to which the Group and Institute are committed for cash flow hedging purposes are as follows: Group Institute 2009 2008 2009 2008 $’000 $’000 $’000 $’000
Buy AUD 14,500 12,300 - - Sell SGD 16,845 14,094 - -
Buy USD 3,220 - - - Sell SGD 4,493 - - -
46 47 20 FAIR VALUE RESERVE 22 OTHER GAINS AND LOSSES
Group Institute Group Institute 2009 2008 2009 2008 2009 2008 2009 2008 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
At beginning of financial year (2,656) (1,541) (1,879) (1,114) Gain on disposal of property, plant and equipment (34) (10) (33) (8) Arising during the year 9,539 (1,115) 6,823 (765) Net foreign exchange losses 120 4 1 4 At end of financial year 6,883 (2,656) 4,944 (1,879) Fair value gain on forward foreign exchange contracts designated as cash flow hedges transferred from hedging reserve - (385) - (53) The fair value reserve relates to revaluation of the available-for-sale investments. As certain of these investments are funded by the SIM University Education Fair value (gain) loss on forward foreign exchange contracts not used for hedging purposes (1,269) 2,413 (222) 998 Fund, the fair value reserve which forms part of the SIM University Education Fund amounted to gain of $1,939,000 (2008 : loss of $777,000). Change in fair value of fair value through profit or loss investments (1,713) 2,130 (1,426) 1,835 Impairment loss on available-for-sale investments - 15,319 - 11,076 (2,896) 19,471 (1,680) 13,852 21 ADMINISTRATIVE EXPENSES
Group Institute 23 STAFF COSTS 2009 2008 2009 2008 $’000 $’000 $’000 $’000 Included in staff costs are the following amounts: Group Institute Staff costs (Note 23) 51,115 45,164 15,574 12,129 2009 2008 2009 2008 Depreciation of property, plant and equipment 13,965 11,509 7,617 6,626 $’000 $’000 $’000 $’000 Maintenance 6,117 5,305 4,658 4,666 Utilities and telephone 2,019 1,954 1,966 1,893 Wages and salaries 44,568 39,315 13,276 10,280 Professional fees 1,570 1,628 780 795 Cost of defined contribution plans 4,594 4,093 1,435 1,143 Others 3,836 4,217 1,661 1,656 Other staff benefits 1,953 1,756 863 706 Total 78,622 69,777 32,256 27,765 51,115 45,164 15,574 12,129
48 49 24 TAXATION 24 TAXATION (cont’d) With effect from Year of Assessment 2008, the requirement for charities to spend at least 80% of their annual receipts on charitable objects in Singapore within 2 years in order to enjoy income tax exemption has been removed. Consequently, Section 13M has been repealed by Section 13(1)(zm) and the receipts $’000 for the financial years ended December 31, 2009 and 2008 are exempt from income tax. Deferred tax benefit on above unrecorded Income tax expense of a subsidiary, Singapore Institute of Management Pte. Ltd., varied from the amount of income tax determined by applying the Singapore At December 31, 2008 325 income tax rate of 17% (2008 : 18%) to profit before income tax as a result of the following differences: At December 31, 2009 100 2009 2008 $’000 $’000 The realisation of future income tax benefits on donations carry forwards is available up to a maximum of 5 years subject to the conditions imposed by law including retention of majority shareholders as defined and donations must be deducted from income after capital allowances and trade losses. In 2009 and Income tax expense at statutory rate 5,078 3,595 2008, no deferred tax asset was recognised in view of the unpredictability of future profit stream. Non-allowable items 3,026 3,748 Tax effect on utilisation of double tax deduction on donations (7,970) (7,195) Others (134) (148) 25 COMPONENTS OF OTHER COMPREHENSIVE INCOME -- Group Institute Singapore Institute of Management Pte. Ltd. has donations carry forwards available for offsetting against future taxable income as follows: 2009 2008 2009 2008 $’000 $’000 $’000 $’000 $’000 Cash flow hedges: At January 1, 2008 913 Gains (Losses) arising during the year 1,061 (2,020) - - Adjustments (22) Reclassification to profit or loss from equity on cash flow hedges 2,020 (385) - (53) Arising in the financial year 40,885 3,081 (2,405) - (53) Utilised in the financial year (39,972) Available-for-sale investments: At December 31, 2008 1,804 Gains (Losses) arising during the year 9,539 (1,115) 6,823 (765) Adjustments 608 Arising in the financial year 45,054 Funds (utilised) received - Net (227) 130 - - Utilised in the financial year (46,880) At December 31, 2009 586 Other comprehensive income for the year, net of tax 12,393 (3,390) 6,823 (818)
50 51 26 COMMITMENTS 27 OPERATING LEASE COMMITMENTS (cont’d) Group Institute b) The Group and Institute as lessors 2009 2008 2009 2008 The Group and Institute rent out some of its premises under operating leases. Rental income earned by the Group and Institute during the year amounted $’000 $’000 $’000 $’000 to $2,227,000 (2008 : $1,507,000) and $1,165,000 (2008 : $1,154,000) respectively.
a) Capital expenditure commitments At the end of the reporting period, the Group and Institute have contracted with tenants for the following minimum lease payments: Estimated amounts committed for future capital expenditure but not provided for in the financial statements 98,670 19,016 93,277 10,265 Group and Institute b) Forward foreign exchange contracts 2009 2008 At the end of the reporting period, the total notional amount of outstanding forward foreign exchange contracts to which the Group and Institute are $’000 $’000 committed are as disclosed in Note 8. Future minimum lease payments receivable: Within 1 year 784 816 27 OPERATING LEASE COMMITMENTS Within 2 to 5 years 294 320 a) The Group and Institute as lessees Group Institute 2009 2008 2009 2008 28 CONTINGENT LIABILITIES $’000 $’000 $’000 $’000 Group Institute Minimum lease payments under operating leases recognised as expenditure of the year 6,072 2,870 65 77 2009 2008 2009 2008 $’000 $’000 $’000 $’000 At the end of the reporting period, the Group and Institute have outstanding commitments under non-cancellable operating leases which fall due as follows: Guarantees (unsecured) 1,547 1,532 152 137 Group Institute 2009 2008 2009 2008 $’000 $’000 $’000 $’000
Future minimum lease payments payable: Within 1 year 6,330 6,024 554 310 Within 2 to 5 years 2,603 6,890 1,358 544
Operating lease payments represent rentals payable by the Group and Institute for certain of their office equipment. Leases are negotiated for the range from 2 to 5 years and rentals are fixed for an average of 2 to 5 years. 52 53