ENRICHING LIVES NTUC ENTERPRISE ANNUAL REPORT
PERIOD ENDED 31 MARCH 2013 TABLE OF CONTENT
P03. WHO WE ARE
P06. MESSAGE FROM THE CHAIRMAN
P10. BOARD OF DIRECTORS
P12. GROUP MANAGEMENT COMMITTEE
P14. WHY CO-OPERATIVES?
P18. FAMILY OF NTUC SOCIAL ENTERPRISES
P21. MAKING A DIFFERENCE
P25. CARING FOR LIFE’S BASIC ESSENTIALS
P35. OFFERING PEACE OF MIND
P41. PROVIDING HOPE FOR THE FUTURE
ENRICHING LIVES. P49. ENABLING FULFILLING LIVES
P55. NTUC Enterprise was set up to sharpen the Do Good efforts of the Social THE NTUC SE DIFFERENCE Enterprises – to meet core and enduring needs of working families. Needs that are basic and fundamental, just like water is to the earth; enriching lives and P61. charting new paths of growth. SHAREHOLDERS’ LISTING WHO WE ARE
NTUC Enterprise is the holding entity of the labour movement Social Enterprises (SEs). Collectively owned by the NTUC, SLF and their affiliated Unions, NTUC Enterprise guides the development of the SEs to meet the evolving needs and aspirations of working families in Singapore. NTUC ENTERPRISE ANNUAL REPORT WHO WE ARE 4 5
WHO WE ARE
NTUC Enterprise was set up by the Labour Movement in July 2012 as the holding entity of the family of NTUC Social Enterprises (SEs). SLF NTUC Unions NTUC Enterprise was formed to sharpen the Do Good of the SEs and to support them to scale up sustainably.
NTUC ENTERPRISE
Collectively owned by the Holding entity and single Singapore Labour Foundation largest shareholder of the Set up on 13 July 2012. (SLF), NTUC and affiliated NTUC Enterprise was formed by a transfer of NTUC Social Enterprises unions representing over shares from NTUC, SLF and their affiliated (SEs). unions to NTUC Enterprise. With this share NTUC Enterprise Chairman, 700,000 members. swap, NTUC Enterprise institutionalises the Lim Boon Heng said, “When we strategic partnership between NTUC, SLF and the unions to support the NTUC SEs to do even started each SE, there was much more for working families. to be done. Now there is still much to be done because the NTUC SE FAMILY As the single largest shareholder of the 12 NTUC SEs, NTUC Enterprise will steward their core needs we set out to meet long-term development by focusing on two key are enduring ones.” MEETS UNDER-SERVED NEEDS areas. First, it will work closely with individual NTUC SEs to do more good in existing areas of IN AREAS SUCH AS: needs and to identify new areas. For instance, it will be looking closely at the area of health and Apart from health and community care, NTUC community care which is a concern for many Enterprise also seeks to do more to address working families. cost-of-living issues in the areas of cooked food and childcare services. A group-wide task force has been set up to explore how we can do more to support the Second, it will lead group-wide efforts to elderly, and also ensure that the rest of the increase financial resilience and develop talent, population is well cared for in the areas of essential for the long-term development of the primary care, chronic-condition management NTUC SEs. ANNUAL and rehabilitative care. REVENUE 13,000 $6.6b DAILY FINANCIAL EMPLOYEES ESSENTIALS SERVICES
ASSETS WORTH 2million CUSTOMERS $35.1b PER YEAR
HEALTH & CHILDCARE & COMMUNITY CARE EDUCATION NTUC ENTERPRISE ANNUAL REPORT MESSAGE FROM THE CHAIRMAN 6 7
MESSAGE FROM THE CHAIRMAN
“Co-operatives are set up to help improve lives, and to achieve certain social goals. This gives us our right to exist, and our place in society. We must never forget that.” – Chairman of NTUC Enterprise
It has been more than 40 years since the NTUC, more collective good. Further, while members in partnership with unions and the Singapore can withdraw from the co-operative at any time, Labour Foundation (SLF), embarked on the the value of the shares they can redeem is again journey of setting up co-operatives. Today the capped at what was originally invested (par NTUC Social Enterprises serve some 2 million value) or net asset value, whichever is lower. people a year. With the formation of NTUC Should the co-operative be wound up, residual Enterprise as the holding entity of the family assets are not distributed among the individual of 12 NTUC Social Enterprises, it is timely to members but are used to further the objectives reflect on our beginnings and our purpose. of the larger co-operative community. All this is obviously very different from commercial From the start, NTUC Social Enterprises companies where shareholders are entitled were meant to be economic ventures with to both dividends and surplus assets of the a difference. They were to serve as a social company, in proportion to how much has been leveller to protect workers from the excesses of invested. The co-operative structure continues to a free market economy, helping them to stretch be the best safeguard for the Do Good mission of their hard-earned dollar. Over the years, the the NTUC Social Enterprises. NTUC set up various social enterprises; each with a specific social role - a unique Do Good NTUC, SLF and the unions affiliated to NTUC mission to improve the lives of working families. and SLF have set up NTUC Enterprise Co- operative to steer the long term development of This Do Good mission is captured in the very the NTUC Social Enterprises. NTUC Enterprise structure of NTUC Social Enterprises as co- will focus on two key areas: First, it will work operatives designed to serve collective rather closely with individual NTUC Social Enterprises than individual interests. Unlike commercial to sharpen their Do Good. Second, we will companies whose main objective is to maximise lead group-wide efforts to increase financial profit, co-operative principles explicitly call for resilience and develop talent, essential for a cap on the gains distributed to members so sustainable, long-term development of the that these can instead be channelled towards Social Enterprises.
First, NTUC Enterprise will work SHARPENING OUR DO GOOD closely with individual NTUC Since its formation, NTUC Enterprise has Social Enterprises to sharpen scaled up the work previously done in NTUC their Do Good. Second, we will to review and shape the portfolio to maximise our collective Do Good in the medium term, lead group-wide efforts to increase expanding in areas of new needs and exiting financial resilience and develop from areas where there is less relevance. talent, essential for sustainable, NTUC Enterprise has identified the health and long-term development of the community care sector as a key area where Social Enterprises. we will focus efforts to make a substantial difference in the years ahead, in view of needs by NTUC ENTERPRISE ANNUAL REPORT MESSAGE FROM THE CHAIRMAN 8 9
NTUC FairPrice continued to expand its to $6.6 billion with a net surplus of $306 million housebrand offerings, which include up to NTUC Enterprise will also focus for the financial year ended 31 March 2013. The NTUC Enterprise has scaled 2,600 products including fresh and processed Group’s total assets as at 31 March 2013 also up the work previously done foods, toiletries and household items. FairPrice on strengthening financial grew from $31.0 billion in the previous financial housebrand items are priced at least 10 percent resilience and talent development year, to $35.1 billion this year, contributed in NTUC to review and shape lower on average compared to national brands. in large part by NTUC FairPrice and NTUC the portfolio to maximise across the portfolio. Income. I am also heartened to share that our collective Do Good in the NTUC Unity Healthcare introduced its ‘Unity’ despite a challenging business environment, housebrand of essential supplements and the SEs in the health and community care, medium term, expanding in vitamins which are at least 20 per cent cheaper education and cooked food sectors delivered areas of new needs and exiting than national brands, to encourage more FINANCIAL RESILIENCE strong financial growth, doubling their revenues families to care for their health. NTUC Foodfare AND TALENT DEVELOPMENT from five years ago. from areas where there opened its first foodcourt in the city at the is less relevance. Marina Bay Financial Centre to offer more In order to scale up social impact and meet affordable meal options to workers in the area. needs over the long term, NTUC Enterprise will IN APPRECIATION also focus on strengthening financial resilience working families for affordable healthcare and and talent development across the portfolio. I would like to express my appreciation to my eldercare services. An NTUC Enterprise, NTUC INNOVATING IN NEW AREAS fellow board members, especially Bobby, Teck Eldercare and NTUC Unity Healthcare joint task OF SOCIAL IMPACT NTUC Enterprise has put in place policies on Koon and Chee How, who chair the Audit, force made up of independent directors and portfolio-wide asset allocation and return on Establishment and Nominating Committees management has mapped out our collective NTUC Income stepped up efforts to make equity that will enable us to invest boldly in Do respectively. I would like to thank the Group strategic direction and implementation plan to insurance simple, honest and different. Good initiatives, while maintaining financial Management Committee and pioneering team offer comprehensive and integrated health and Through their Honest Insurance initiative, they discipline. NTUC Enterprise has also developed in NTUC Enterprise for the hard work in the community care services. overhauled their contracts into plain English a group-wide framework on talent development, start-up phase of NTUC Enterprise. I would also to make it easier for customers to understand with the three strategic imperatives of like to thank the boards and management of As part of the overall portfolio review, NTUC their insurance policies and enable them to unleashing the potential of our existing talent the SEs, for their commitment to our collective Enterprise made the difficult decision to wind make informed decisions. In undertaking this to fulfill core management roles; expand our cause, and support for NTUC Enterprise. On down NTUC Thrift & Loan in view of a better effort, NTUC Income became the first insurance talent pool; and retain our talent. To succeed behalf of the family of SEs, I would also like alternative offered by our on-going partnership company in Asia to undertake a major Crystal in these imperatives, the SEs will need to be to thank our shareholders, customers and with OCBC Bank, which has the scale and network Mark initiative – a globally-recognised standard grounded in a collective set of core values that partners for their unwavering support and to offer better returns and service to members. for plain English, used by many leading are purposeful and inspiring, as well as a sound encouragement. I would like to invite all our institutions globally. compensation philosophy and framework. stakeholders to continue to walk alongside us NTUC Enterprise is also glad to note that the on this journey of making a difference to the SEs have been stepping up their effort to expand NTUC Eldercare is piloting, in partnership with lives of workers and their families. their social impact in the past year. the government, a new model of Senior Care FINANCIAL PERFORMANCE Centres to offer a higher level of elderly care which includes nursing and rehabilitation, as With the share swap completed only after the MR LIM BOON HENG CHAIRMAN MODERATING COST OF LIVING well as dementia management. NTUC Foodfare end of the financial year, contributions from the is pioneering a new operating model for the Enterprise Group and its subsidiaries have not Cost of living remains a key concern for many Bukit Panjang Hawker Centre, the first of the been incorporated into the financials. However, working families. With its scale, NTUC FairPrice next-generation hawker centres that will be set had this been done, I am happy to share that continues to play a key role in moderating the up to keep cooked food affordable in the HDB the NTUC Enterprise Group continues to prices of daily essentials. heartlands. perform well. The revenue of the group came up NTUC ENTERPRISE ANNUAL REPORT BOARD OF DIRECTORS 10 11
BOARD OF DIRECTORS
MR HENG CHEE HOW BOARD MEMBER ON BEING A PART OF DEPUTY SECRETARY-GENERAL, NTUC
NTUC ENTERPRISE… NTUC will always be on the side of workers and employees of all levels, fighting for a better future for all. In the workplace, our unions stand up for fairness and push for progressive labour practices. In the community, NTUC’s Social Enterprises must continue to stay focused and work together to help workers and their families live and enjoy a better life. NTUC Enterprise will sharpen that effort, and strengthen us as a force for good.
MR LIM BOON HENG MR KEE TECK KOON CHAIRMAN BOARD MEMBER CHAIRMAN, TEMASEK HOLDINGS CHAIRMAN, NTUC FIRST CAMPUS
My reason for taking up this role is simple – to sharpen the NTUC Enterprise’s purpose is ordinary: making everyday life good that each of our Social Enterprises was set up for. better for working families in Singapore. Yet, it is no ordinary organisation – having to harness the best of capitalism (Do Well) and socialism (Do Good) without the excesses of each. I am really glad to be able to join NTUC Enterprise in helping to chart an arguably new field of organisational endeavour.
MR BOBBY CHIN MR STEPHEN LEE DEPUTY CHAIRMAN BOARD MEMBER BOARD MEMBER, SINGAPORE LABOUR FOUNDATION PRESIDENT, SINGAPORE NATIONAL EMPLOYERS FEDERATION
Given my background and experience, I felt I could make a I see the role of Board of Director at NTUC Enterprise as an contribution to the Social Enterprises. To be able to help the Labour extension of my existing involvement in the Singapore Labour Movement and the Social Enterprises to do more good was a strong Foundation (SLF) Board to support the Labour Movement and the factor in my decision to join the Board of NTUC Enterprise. NTUC Social Enterprises in fulfilling their Do Good objectives. I am happy for this opportunity to play a greater role in helping working families live meaningful lives.
MS DIANA CHIA MR LIM KUANG BENG BOARD MEMBER BOARD MEMBER PRESIDENT, NTUC SECRETARY FOR FINANCIAL AFFAIRS, NTUC
Together with the Labour Movement, I am happy to be part As a representative of NTUC-affiliated unions, my role is to of NTUC Enterprise and its family of Social Enterprises to serve care for the interests and enhance the welfare of workers in the enduring needs of our fellow workers and members. Only by Singapore. Being part of the NTUC Enterprise family to grow our pressing on to deliver our common purpose, can we look forward Social Enterprises allows me to support the Labour Movement to to a better Singapore for workers and their families. do even more good and make a difference to the lives of our union members. NTUC ENTERPRISE ANNUAL REPORT GROUP MANAGEMENT COMMITTEE 12 13
GROUP MANAGEMENT COMMITTEE
Together with the Board, the Group Management Committee, chaired by NTUC Enterprise Chairman Mr Lim Boon Heng, provides oversight on strategic matters relating to the Group.
1. MR LIM BOON HENG 2. MR TAN SUEE CHIEH
Mr Lim is the Chairman of NTUC Enterprise Mr Tan takes up the position of Group CEO Co-Operative Ltd and Deputy Chairman of of NTUC Enterprise Co-Operative Ltd Singapore Labour Foundation. He is also the on 1 October 2013. He joined the Labour Chairman of Temasek Holdings Pte Ltd. He Movement in 2003 as a director, NTUC Income, held several Cabinet positions in the Singapore and was NTUC Income’s CEO from February Government from 1993 to 2011. He was also 2007 until 2013. Before this, he held senior Secretary-General of the NTUC from 1993 regional positions in Prudential plc and SHL to 2006. Group plc – a human resource consulting company.
3. MR KEE TECK KOON 4. MR TAN KIAN CHEW
Mr Kee is a member of the Board of Directors of Mr Tan is the Group Chief Executive Officer of NTUC Enterprise Co-Operative Ltd. He is also a NTUC Fairprice Co-operative Ltd, Director of Non-Executive Chairman of NTUC First Campus NTUC Fairprice Foundation and Chairman of Co-Operative Ltd, CapitaCommercial Trust NTUC Foodfare Co-operative Ltd. Management Ltd, Changi Airport International Pte Ltd, Alexandra Health Endowment Fund, and Lien AID Ltd. He also holds directorship positions in NTUC LearningHub Pte Ltd, Ascendas Pte Ltd and Raffles Medical Group Ltd.
5. MS ADELINE SUM 6. MR DAVID POH
Ms Sum is the Chief Development Officer of Mr Poh is the Chief Financial Officer of NTUC 1 MR LIM BOON HENG NTUC Enterprise Co-operative Ltd. She is Enterprise Co-Operative Ltd. He is also Chief concurrently the Chief Executive Officer of Financial Officer and Deputy Chief Executive Singapore Labour Foundation and NTUC Choice Officer of Singapore Labour Foundation. 2 MR TAN SUEE CHIEH 5 3 2 1 4 6 Homes Co-operative Ltd.
3 MR KEE TECK KOON
4 MR TAN KIAN CHEW
5 MS ADELINE SUM
6 MR DAVID POH NTUC ENTERPRISE ANNUAL REPORT WHY CO-OPERATIVES? 14 15
WHY CO-OPERATIVES?
NTUC Social Enterprises are organised as co-operatives. This means that they operate along certain principles and structures recognised by the international co-operative movement.
however, was the 1969 Modernisation Seminar A co-operative is a business organised by the NTUC. The Labour Movement came to the conclusion that it had to be more that is jointly owned by its than a bargaining institution if it were to be a members to meet their common significant force in helping to better the lives of Singapore’s workers. In particular, it could set needs through the very services up co-operatives to provide services to workers, provided. In such an entity, the especially in areas where their needs were underserved by commercial companies, and objective is to meet collective and help workers stretch their hard-earned dollars not individual interests. by operating efficiently and keeping prices low.
In a sense, it was a natural extension of the work of the trade unions – to use collective these are to be distributed to members in strength to first secure fair wages for workers proportion to how much they have spent on through industrial relations and thereafter to co-operative products or services, for example, help protect the standard of living that could be through rebates. Should a co-operative be attained by those wages through co-operative wound up, residual assets are not distributed businesses. As Mr Lim Chee Onn, a former among the individual members but are used to Secretary-General of the NTUC reiterated further the objectives of the larger co-operative at an NTUC delegates’ conference in 1980, community. This is obviously very different from “Our collective bargaining role is insufficient commercial companies where shareholders are to ensure that the labour movement grows Perjuangan NTUC December 1969 entitled to both dividends and surplus assets in significance as a constructive force in the of the company, in proportion to how much has overall development of Singapore. Workers At the same time, NTUC co-operatives are The Rochdale Society of Equitable Pioneers been invested, and where profit maximisation have personal needs other than job-oriented different in some ways from traditional co- was founded in 1844 and the principles they set is the primary objective. In fact, international ones. Their dependants too, have needs of their operatives. Benefits are not confined to out eventually became the founding model of co-operative principles place a limit on the members alone but are extended to touch the co-operative societies. Today, the international dividends paid to members. Many of these time- lives of all in society. co-operative sector is estimated to have more honoured principles dating back to the Rochdale than one billion individual members and account Pioneers are incorporated in co-operative “Workers have personal needs The international co-operative movement for more than 100 million jobs. legislation around the world, including the other than job-oriented ones. started during the 19th century Industrial Singapore’s Co-operative Societies Act; as well Revolution in Europe. Many workers and small In its simplest form, a co-operative is a business as NTUC co-operatives. Their dependants too, have farmers were exploited and left behind as they that is jointly owned by its members to meet needs of their own. We want to were increasingly replaced by machines which their common needs through the very services be associated with the meeting of could do the same jobs. In the midst of hardship, provided. In such an entity, the objective is to NTUC CO-OPERATIVES workers and farmers came together to use their meet collective and not individual interests. these needs, and with improving collective strength to drive a better bargain – as Members can withdraw from the society at any In Singapore, the co-operative movement their quality of life.” said Mr Lim consumers, producers or borrowers. Among time. However, the value of the shares they began in the 1920s, with the formation of the these were a group of weavers in Rochdale, can redeem is capped at what was originally Singapore Government Servants’ Co-operative Chee Onn, a former Secretary- England who decided to pool resources to invested (par value), or net asset value, Thrift & Loan Society. The defining moment General of the NTUC. purchase basic goods at a cheaper price. whichever is lower. Where there are surpluses, in the Singapore co-operative movement, NTUC ENTERPRISE ANNUAL REPORT WHY CO-OPERATIVES? 16 17
SOURCE: New Nation © Singapore Press Holdings Limited. Reproduced with permission own. We want to be associated with the meeting as, if not even more, efficient than commercial of these needs, and with improving their quality Unlike traditional co-operatives, competitors. They have to achieve scale as soon The structure, legislation and of life.” as possible so that they can maximise value to NTUC co-operatives served not customers, set benchmark prices and reach charter of the co-operative to NTUC’s plans to establish co-operatives were only the interests of their own more working families. always put customers, members strongly supported by then Finance Minister Dr Goh Keng Swee. The NTUC accepted Dr members but also the broader NTUC FairPrice has been able to moderate and the public before profits, Goh’s suggestion to start off with an insurance Singapore community. This Do the prices of essentials in normal times and continue to be the best safeguard co-operative, followed by a consumer co- to curb profiteering during difficult ones, for operative. NTUC Income met a genuine need for Good is the NTUC co-operative’s example, during the SARS crisis in 2003 and for the Do Good mission of the financial protection among low-wage earners reason for existence. high commodity inflation in 2007-2008, because NTUC social enterprises. in whom private insurers were uninterested. it had sufficient scale. NTUC Income is today an NTUC Welcome, now known as NTUC FairPrice, industry leader redefining best practices for the followed in 1973, to help stabilise the price of citizens of Singapore, “…the labour movement insurance industry, including honest insurance shareholders. We are social enterprises seeking rice and other essential commodities during the has decided to take on a positive role in the and fair claims settlement. to do well (competitive and making profit) so that oil crisis. development of the Republic’s economy. It we have the resources to do good (maximise will cease to be a narrow sectional pressure As Mr Lim Swee Say, Secretary-General of social impact). To us, measurement of greatness Since then, NTUC Social Enterprises have led the group whose interests and advancement are the NTUC once commented, “Our NTUC is how much social impact we have created, growth of the co-operative sector in Singapore, to be promoted at the expense of others. On co-operatives are not business enterprises and not how much profit we have generated.” shaping the development of co-operative the contrary, the labour movement has now seeking to maximise profits for the benefits of enterprises and establishing the influence of the recognised that it is only where there is growth Going forward, NTUC Social Enterprises co-operative movement in the nation’s social and prosperity that its members can get the will strive to continue to meet a wide range and economic landscape. NTUC played a key improvements they want.” And as Mr. C.V. Mr Lim Swee Say, Secretary- of social needs, from stabilising prices of role in the drafting and enactment of the 1979 Devan Nair, then-Secretary-General of the essential goods and services; to enhancing Co-operative Societies Act that replaced pre- NTUC illustrated so graphically during the General of the NTUC once basic financial security; and caring for families independence co-operative legislation. In fact, debate on the Co-operative Societies Bill in commented, “Our NTUC Co- with both young and old dependents. The NTUC co-operatives were pioneers not just in 1979, “Denticare is ready to pull out the teeth of structure, legislation and charter of the co- Singapore, but in the international co-operative members and non-members alike, with equal operatives are not business operative to always put customers, members movement as a whole. impartiality”! enterprises seeking to maximise and the public before profits, continue to be the best safeguard for the Do Good mission of the profits for the benefits of NTUC social enterprises. Mr Lim Boon Heng, BEYOND MEMBERS DOING GOOD AND DOING WELL shareholders. We are social former Secretary-General of the NTUC and now enterprises seeking to do well Chairman of NTUC Enterprise said at a meeting Unlike traditional co-operatives, NTUC co- Another important principle that NTUC of the International Co-operative Alliance in operatives served not only the interests of their co-operatives recognised from the start is so that we have the resources 1999, “Co-operatives are set up to help improve own members but also the broader Singapore the need to Do Well in order to deliver the to do good. To us, measurement lives, and to achieve certain social goals. This community. This Do Good is the NTUC co- maximum Do Good. This requires them to be gives us our right to exist, and our place in operative’s reason for existence. Reflecting both professionally excellent and financially of greatness is how much social society. We must never forget that.” Such are on the larger role of NTUC co-operatives on sustainable. NTUC co-operatives therefore need impact we have created, and co-operatives, Singapore-style, NTUC-style. Singapore, Dr Goh Keng Swee noted how the to earn enough profit to be self-sustaining, labour movement had charted a new course such that they are able to reinvest and provide not how much profit we have which would bring ripe and tangible benefits a reasonable (but not maximum) return to generated.” to the labour movement as well as to the shareholders. They also need to strive to be NTUC ENTERPRISE ANNUAL REPORT FAMILY OF NTUC SOCIAL ENTERPRISES 18 19
FAMILY OF NTUC SOCIAL ENTERPRISES OUR JOURNEY. OUR HISTORY.
1970 1973 1977 1992 To provide affordable insurance To moderate the cost of living To provide quality early childhood To provide affordable, quality to workers. for workers. care and education services that are healthcare and wellness affordable and accessible to families. products and services.
1995 1995 1997 1998 To stabilise cooked food prices To deliver affordable, To provide affordable, To unite NTUC’s broadcasting and in Singapore. quality housing. quality eldercare services. publishing operations and to be the voice for workers in Singapore.
1998 1998 2004 2011 To help working families get To encourage the values of savings To enhance the life-long To enable families to benefit from more value from everyday and thrift among workers and employability of workers. products and services offered by expenditures through a rewards provide affordable financing. the family of NTUC SEs and to and loyalty programme. promote bonding under one roof. MAKING A DIFFERENCE
Since the 1970s, the NTUC SEs have been working to make life better for working families in Singapore. NTUC ENTERPRISE ANNUAL REPORT MAKING A DIFFERENCE 22 23
MAKING A DIFFERENCE
NTUC SEs set out to make a difference for working families. They focus on a few key areas: Caring for life’s basic essentials, offering peace of mind, providing hope for the future and enabling fulfilling lives.
In caring for life’s basic essentials, we recognise the growing concern over the rising costs of living in areas such as healthcare, cooked food NTUC SEs continue to touch and other daily essentials. Our mission is to the lives of more than moderate the cost of living for working families to ensure that the most basic necessities will two million customers every year. always be available to them at affordable prices. Collectively, they also employ some 13,000 staff. In offering peace of mind, we understand the uncertainty of life and the need to prepare for unforeseen circumstances. Insurance coverage is a key form of financial security we provide to protect the long-term interests of working families.
In providing hope for the future, we view education as a key social leveller for working families; whether it is for a young child whose parents desire the best headstart for them in life, or for a mid-career employee seeking to enhance his relevance in a fast-changing job market.
In enabling fulfilling lives, we strive to care for families and in particular those with elderly parents, to add life to their golden years.
Today, the NTUC SEs continue to touch the lives of more than two million customers every year. Collectively, they also employ some 13,000 staff. CARING FOR LIFE’S BASIC ESSENTIALS
A key social mission of the NTUC SEs is to stretch every hard-earned dollar so that working families can always afford life’s basic essentials. NTUC ENTERPRISE ANNUAL REPORT CARING FOR LIFE’S BASIC ESSENTIALS 26 27
CARING FOR LIFE’S KEY BASIC ESSENTIALS MILESTONES
NTUC Social Enterprises (SEs) strive to ensure that the basic 1985 needs of working families are met. These basic needs include daily NTUC FairPrice introduces housebrand products NTUC Link launches enhanced Loyalty to offer better value and savings to customers. Programme with Plus!VISA to offer greater essentials, cooked food and healthcare. Our social mission is to savings. stretch every hard-earned dollar for the working family so that they 1994 can afford life’s basic essentials. NTUC FairPrice introduces a basket of Everyday 2011 Low Price (EDLP) essential items to ensure NTUC FairPrice celebrates the opening of its affordability. At least 90 per cent of EDLP items 100th store. are among the lowest priced in the market. NTUC Foodfare launches its first family- friendly foodcourt at the Clementi Mall to foster 1999 family bonding over affordable dining options. NTUC Link launches LinkPoints Loyalty Programme to reward members for everyday purchases. 2012 NTUC Foodfare officially launches the Rice Garden community project, and plans to 2002 make it available at all 24 heartland areas. NTUC FairPrice implements a 2% discount for Senior Citizens on Tuesdays at all stores. NTUC Foodfare opens its first flagship outlet in the city at Marina Bay Financial Centre to 2007 extend its presence beyond the heartlands. NTUC FairPrice introduces the “Stretch Your Dollar” programme with a 5% discount on NTUC Foodfare is appointed to run the 500 essential FairPrice house brands to help first of 10 new hawker centres that the consumers cope with rising inflation. NTUC Government is building over the next decade. FairPrice brings the programme back for the third time in 2012. NTUC Unity launches its house brand of essential supplements and vitamins, priced NTUC Link introduces instant LinkPoints at least 20% cheaper than national brands. redemption at participating merchants to provide greater convenience. NTUC Link rolls out “LinkPoints-Better- Than-Cash” Rewards programme to help members further stretch their dollar. 2008 NTUC FairPrice launches about 200 “Yellow Dot” basic items, representing the lowest 2013 priced in their respective product categories. NTUC Unity opens its 50th store, marking its commitment to extend its reach to serve the needs of the community. 2009 NTUC Foodfare pilots its Rice Garden NTUC Foodfare introduces Budget Pick, a community project at Aljunied Hawker Centre basic entry-priced meal from as little as $2, to ensure affordability of cooked food, for those at its next-generation coffeeshops to ensure most affected by the rising cost of food and affordability in the heartlands. An additional inflation. Meals are available from $1.99. 10% discount is provided to Public Assistance cardholders as part of its wider “Community 2010 Goodness” initiative to help the needy. Through NTUC FairPrice, we ensure that NTUC Link, we create a reward system where NTUC Foodfare extends its popular NTUC working families have access to basic food every cent spent is a cent saved. Value Meals to all its 50 outlets islandwide staples at affordable prices. With NTUC including coffeeshops and Wang Café. Foodfare, we answer the public’s call for By providing affordable access to life’s basic inexpensive and accessible cooked meals. At essentials, we hope to make an impact on the LEGEND NTUC Unity, working families are assured of lives of working families in Singapore. quality, affordable healthcare. Finally, through NTUC FairPrice NTUC Foodfare NTUC Link NTUC Unity Healthcare NTUC ENTERPRISE ANNUAL REPORT CARING FOR LIFE’S BASIC ESSENTIALS 28 29
STRETCHING EVERY SCALING UP TO CONTINUING TO HARD-EARNED DOLLAR PROVIDE BETTER VALUE EXTEND OUR SOCIAL REACH
With rising costs of living, food prices and In order to maximise social impact, the NTUC While NTUC FairPrice, NTUC Foodfare, NTUC medical costs, working families need to be able SEs need to scale up their operations rapidly in Unity and NTUC Link have delivered quality and to stretch their dollars. That’s what NTUC SEs a financially sustainable way. Only by improving affordable living to Singaporeans over the years, In order to maximise social have set out to do. capabilities, enhancing productivity and attaining there is still much to be done. Moving forward, impact, the NTUC SEs need to economies of scale can they achieve greater the NTUC SEs will be looking to increase their NTUC FairPrice was the first consumer co- cost advantages, which can be passed on to social reach so as to touch more lives. scale up their operations rapidly operative set up in 1973 to check profiteering working families in the form of lower prices and in a financially sustainable way. amid rising food prices due to a global oil crisis. better quality. In a bid to combat fluctuating food NTUC FairPrice will increase accessibility Only by improving capabilities, Likewise, NTUC Unity and NTUC Foodfare were supply and prices, NTUC FairPrice diversifies of its stores with 10 more stores including a set up in 1992 and 1995 respectively to moderate its food sources, imports from over 70 countries hypermart in Jurong East. In keeping with its enhancing productivity and the rising prices of medical and healthcare worldwide and engages over 80 contract farms mission to grow its social reach, NTUC Foodfare attaining economies of scale products, and cooked food. to ensure consistent supply at pre-agreed will be increasing the presence and accessibility prices. With a network of over 270 outlets in of its Rice Gardens islandwide so that more can they achieve greater cost Today, these SEs continue to serve as a multiple retail formats, NTUC FairPrice serves Singaporeans can enjoy healthy, affordable advantages, which can be passed stabilising force in their respective industries more than half a million customers daily. cooked food. NTUC Unity will expand to more to ensure that working families have access to locations to make its services accessible to even on to working families in the form essential items at affordable prices. Families Rice Garden is a social outreach project initiated more working families while NTUC Link will of lower prices and better quality. can now enjoy savings on basic essentials with by NTUC Foodfare to help cushion the impact continue to increase its number of participating house brands and a basket of staples offered of rising food price on consumers, especially merchant outlets so that working families can at everyday low prices at FairPrice’s outlets the elderly and lower income groups. With the further stretch their dollar. islandwide; enjoy a warm, hearty meal from just opening of its first outlet in the Central Business $1.99 at NTUC Foodfare’s Rice Garden outlets District at Marina Bay Financial Centre and Together, we will continue to make a difference and purchase vitamins and supplements at up to the first of Singapore’s next-generation coffee that will impact the lives of working families in 30% discounts from NTUC Unity. shops in Clementi, NTUC Foodfare is set to Singapore, because everyone deserves the right have a greater presence to stabilise the prices to life’s basic essentials. NTUC Link was incorporated in 1998 to help of cooked food so consumers will always have a working families get more value from their daily quality and affordable alternative. expenditures through a rewards and loyalty programme. Today, the Plus! loyalty programme NTUC Unity equips its pharmacists with the has 1.5 million members enjoying LinkPoints necessary expertise to help customers self- and other savings at over 1,000 participating manage their chronic diseases, enabling them merchant outlets in Singapore. to take charge of their own health, while NTUC Link is constantly expanding the number of participating merchant outlets so as to generate greater cost savings for its members. NTUC ENTERPRISE ANNUAL REPORT CARING FOR LIFE’S BASIC ESSENTIALS 30 31
QUICK FACTS OF QUICK FACTS OF NTUC FAIRPRICE NTUC UNITY HEALTHCARE
OVER 50 40 OVER 50 13 5 100 270 SUPERMARKETS YEARS OF 2,600 PHARMACIES DENTICARE SELF-HELP MR VALUE OUTLETS OPEN PROVIDING HOUSEBRANDS CLINICS HEALTH CHECK ESSENTIAL ISLANDWIDE ROUND-THE-CLOCK QUALITY, TODAY PRICED STATIONS PRODUCTS AT (24 X 7) AFFORDABLE AT LEAST 10% AFFORDABLE PRODUCTS LOWER THAN PRICES COMPARABLE NATIONAL BRANDS
MORE THAN SERVES AN SERVES 9,000 AVERAGE $45.6M $1M STAFF 500K REBATES GIVEN 3.3M DISCOUNTS CUSTOMERS 90K TO SHAREHOLDERS SINGAPOREANS AND DAILY SENIORS ON (CUSTOMERS) YEARLY SAVINGS TO TUESDAYS IN 2012 LINKPOINTS MEMBERS NTUC ENTERPRISE ANNUAL REPORT CARING FOR LIFE’S BASIC ESSENTIALS 32 33
QUICK FACTS OF QUICK FACTS OF NTUC FOODFARE NTUC LINK
OVER REWARDS 45 17 425K 780K 1.5M NO.1 UP TO FOODFARE YEARS OF RICE GARDEN VALUE MEALS MEMBERS LOYALTY 1,000 OUTLETS PROVIDING SET MEALS AT SERVED PROGRAMME PARTICIPATING 80% HEALTHY, $1.99 SERVED LAST YEAR – IN SINGAPORE MERCHANT DISCOUNTS QUALITY MEALS SINCE 2009 RESULTING IN (BASED ON OUTLETS AND SAVINGS SAVINGS OF MEMBERSHIP) OVER $380K
3.3M OVER 150 $40M CUPS OF 20K LINKPOINTS IN MEMBERS’ COFFEE OR SENIOR CITIZENS FOR SAVINGS TEA SOLD ENJOY EVERY OR BENEFITS A YEAR STARTING 10 % DISCOUNT DOLLAR ANNUALLY FROM 80 CENTS OFF MEALS A CUP ANNUALLY (EVERY TUESDAY) OFFERING PEACE OF MIND
We serve to protect the financial future of working families in Singapore so that they can have peace of mind. NTUC ENTERPRISE ANNUAL REPORT OFFERING PEACE OF MIND 36 37
OFFERING KEY PEACE OF MIND MILESTONES
NTUC SEs care for the financial needs of working families especially 2003 2011 during life’s critical contingencies. Working families need to be NTUC Thrift & Loan launches the NTUC Income introduces Orange Force, voluntary Taxi Operators’ Savings Scheme its in-house 24/7 accident response team assured of their financial security to have peace of mind. in partnership with the Taxi Operators’ that provides accident-scene assistance to Association to help taxi drivers tide over bad distressed customers. times during the SARS outbreak. 2012 2006 NTUC Income launches the Value Pack, NTUC Thrift & Loan launches the a special medical and term insurance Retrenched Workers’ Fixed Deposit Scheme package, to meet the long-term health to offer better protection for union members and protection needs of lower-income who have been retrenched. Singaporeans.
NTUC Income overhauls its contracts into 2007 plain English to make it easier for customers NTUC Thrift & Loan lowers the Senior Citizen to understand its insurance policies so as to Fixed Deposit’s qualifying age to 50 years make informed decisions. so that more elderly can enjoy an additional 0.2% per annum over the board rate. NTUC Income implements the SilverCare plan, in the face of a rapidly ageing 2008 population, to cover the most basic NTUC Income launches the IncomeShield accidental risks faced by the elderly on Assistance Scheme at the height of the a daily basis. global financial crisis to help low-income and elderly patients cope with premium revisions. 2013 NTUC Thrift & Loan exits the thrift and 2010 loan business after faithfully serving the NTUC Income launches a free insurance financial needs of union members effectively policy, Income Family Micro-Insurance for 15 years. Scheme, to provide financial help for lower- income families with young children in the event a main breadwinner passes away or becomes totally and permanently disabled.
In line with our social mission to protect the life’s uncertainties. With NTUC Thrift & Loan, financial future of working families in Singapore, we helped union members to save for rainy days two NTUC SEs were established to help low- by offering attractive interest rates so that they income workers and their dependents in two can grow to be financially independent. areas: insurance and savings. By enhancing financial protection and instilling Through NTUC Income, we bring essential the habit of saving to safeguard their financial LEGEND insurance within the reach of the lower-income future, we help to provide peace of mind for groups so that everyone can be protected from working families. NTUC Income NTUC Thrift & Loan NTUC ENTERPRISE ANNUAL REPORT OFFERING PEACE OF MIND 38 39
QUICK FACTS OF NTUC Income was the first co- operative set up by NTUC in 1970 NTUC INCOME to provide affordable insurance for blue-collar workers in Singapore. As a social enterprise, its mission is to make essential insurance affordable, accessible and sustainable for customers.
PROVIDING PROTECTION FROM LIFE’S UNCERTAINTIES
In Singapore, where the cost of living is heavily discounted premiums to lower-income high, financial security is a key concern of workers; underscoring its commitment to , $2.5B many working families. However, with life’s 43 3.8M 1 228 address the needs of the uninsured and the YEARS OF POLICIES INSURANCE AMOUNT OF uncertainties, ensuring that one’s future is under-insured population in Singapore as part PROTECTING AGENTS CLAIMS financially secure can be difficult. Over the of its social purpose. POLICYHOLDERS IN 2012 years, NTUC Income and NTUC Thrift & Loan FROM LIFE’S have worked to enhance the financial security NTUC Income has truly exemplified what it UNCERTAINTIES of Singapore’s working families. With higher means to put people before profit and, in the road interest rates on savings, lower premiums and ahead, it will continue in its social mission to offer robust insurance plans, working families can peace of mind for Singapore working families. be secure in the knowledge that they and their finances are in good hands. DELIVERING THRIFT NTUC Income was the first co-operative set THROUGH PARTNERSHIPS up by NTUC in 1970 to provide affordable insurance for blue-collar workers in Singapore. Since its inception in 1998, NTUC Thrift & As a social enterprise, its mission is to make Loan and its affiliated partners have worked to essential insurance affordable, accessible and instil the habit of saving and to help workers 15min sustainable for customers. Today, NTUC Income financially manage different stages of their lives is a leader in Singapore’s insurance industry, such as renovating their homes and building serving more than two million customers with a retirement nest egg. Over the years, union almost 3.8 million policies. and non-union members have benefited from various savings products that earned attractive In 2010, in line with its commitment to deliver interest rates. positive social impact, NTUC Income launched a free insurance scheme for low-income In 2004, NTUC partnered OCBC Bank to jointly households that are unable to afford insurance. develop a suite of basic banking products, which Called the Income Family Micro-Insurance included the NTUC-OCBC Starter Account. Scheme, it is expected to benefit more than Unlike similar commercial bank accounts, it REACHES AN TOUCHED 20,000 families, and will pay out $5,000 in had no fall-below fee and was, therefore, well 24/7 ACCIDENT THE LIVES OF the event the main caregiver passes away or received by union members. At its height, the ACCIDENT LOCATION MORE THAN WITHIN becomes disabled. Starter Account had 150,000 union member RESPONSE customers. When more members started saving TEAM 2M* To address the needs of an ageing society, through OCBC Bank rather than NTUC Thrift 15MIN CUSTOMERS NTUC Income introduced its SilverCare plan in & Loan, NTUC made the logical but difficult IN SINGAPORE 2012 to cover the most basic accidental risks decision to exit the thrift and loans business, that seniors aged 50 years and above are prone after faithfully serving the financial needs of to encounter on a daily basis. That same year, union members effectively for 15 years. NTUC Income also launched the Value Pack, * No. of policyholders as which offers health and term insurance at at 31 Dec 2012. PROVIDING HOPE FOR THE FUTURE
We provide education and lifelong learning so that working families have hope for a better future. NTUC ENTERPRISE ANNUAL REPORT PROVIDING HOPE FOR THE FUTURE 42 43
PROVIDING HOPE FOR KEY THE FUTURE MILESTONES
NTUC First Campus believes that every child deserves a good start in 1977 NTUC LearningHub pioneers the WSQ Security Course. In support of the Ministry of NTUC took over its first childcare centre in life. Its social mission is to ensure that every child, regardless of family Manpower, NTUC LearningHub also pioneered Kallang Bahru from the Singapore Industrial Workplace Safety and Health training. background, can receive quality and affordable early childhood care Labour Organisation (SILO) with the aim of and education. Meanwhile, NTUC LearningHub equips adult Singapore supporting mothers who wished to enter and workers with the skills they need to remain relevant to the job market. remain in the workforce to supplement the 2007 family income. NTUC LearningHub launches the Vocational & Technical Training to upskill blue collar 1982 workers in technical skills. NTUC Computer Training Centre, the first iteration of NTUC LearningHub, is set up. 2009 NTUC Childcare rebrands itself as NTUC 1988 First Campus, with its centres renamed My First Skool. RTRC Asia renames itself as NTUC Childcare, now known as NTUC SEED Institute. First Campus, becomes the first private organisation to gain accreditation for the Fundamental Course in Childcare and 2010 Child Development from the Ministry of NTUC LearningHub launches Next U to Community Development. meet the needs of professionals, managers, executives and technicians, offering courses 1989 in collaboration with Disney Institute, Microsoft and other best-in-class partners NTUC Childcare establishes its training and from around the world. consultancy arm, Regional Training and Resource Centre in Early Childhood Care and Education for Asia (RTRC Asia). 2011 NTUC First Campus opens its 100th 1994 childcare centre. NTUC Childcare sets up its first subsidiary, The Little Skool-House International Pte Ltd, 2012 to meet the changing and diverse needs of NTUC LearningHub launches one of parents. Singapore’s largest indoor training centres for trade skills, the 400 pax LHUB Industry 2004 Skill Centre @ Benoi, to offer training for the construction and marine industries, along NTUC Childcare introduces infant care with Workplace Safety and Health courses. services to help new mothers return to work with peace of mind. 2013 NTUC LearningHub is incorporated, moving NTUC LearningHub launches LearningHub from offering computer skills training Global Institute to offer specialised to introducing Pilot Employability Skills programmes in partnership with leading Systems, as well as providing other training. institutions such as ACCA.
2006 NTUC First Campus’ SEED Institute achieves National CET Institute status, an NTUC Childcare launches the Bright accreditation accorded by the Singapore Horizons Fund so that children from low- Workforce Development Agency to only the income families can attend pre-school top Continuing Education Training centres education and level up with their peers. in Singapore.
LEGEND By providing affordable education throughout NTUC LearningHub help level the playing field various life stages, NTUC First Campus and for all. NTUC First Campus NTUC LearningHub NTUC ENTERPRISE ANNUAL REPORT PROVIDING HOPE FOR THE FUTURE 44 45
ENRICHING LIVES FOR A BETTER TOMORROW
Over the years, NTUC First Campus and NTUC memory of being a student at the then NTUC NTUC LearningHub boosted employability and LearningHub have offered working families Childcare centre was of the fun times I had in reduced structural unemployment by helping NTUC LearningHub has trained greater peace of mind and a more secure future. the centre’s swimming pool. Today, my youngest retrenched and older workers update their son enjoys swimming in it as well. What is even skills, training over 14,000 retrenched workers close to 1.4 million executives and NTUC took over its first childcare centre in better than the swimming pool is the team of and nearly 340,000 older employees. Senior working adults, and has worked Kallang Bahru from the Singapore Industrial dedicated and passionate teachers at the centre, low-wage workers were also given training that Labour Organisation (SILO) in 1977 to support who did their best to help Jing Yang overcome furnished them with basic English language and with more than 14,000 companies mothers who wished to enter or remain in his initial separation anxiety and to comfortably vocational (cleaning) skills through the Skills to identify training needs, define the workforce to supplement their household integrate. I like how they constantly introduce Upgrading Initiative for Low Wage Cleaners, a income. Subsequently, it took over nine other the element of learning through creative joint project set up by NTUC LearningHub and curriculum roadmaps and deliver crèches from the Government. Between 1982 methods of play. In addition, the teachers take the Ministry of Education. customised training programmes. and 1983, three new centres were set up at time to explain their lesson plans and practices Ang Mo Kio, Bedok and Clementi to meet the to me during the parent-teacher sessions.” To help companies in selected industries increasing demand for childcare services. In develop their workforce and enhance staff community partners, NTUC First Campus 2004, NTUC Childcare (now known as NTUC advancement and retention, NTUC LearningHub piloted the Development Support Programme First Campus) introduced infant care services at “I like how they constantly has developed a set of skills-upgrading (DSP) at 35 My First Skool centres. DSP provides its first centre in Compassvale to help mothers roadmaps and certification pathways that learning support and therapy intervention to with infants return to work with peace of mind. introduce the element of learning assist employers and employees in determining children with mild developmental delays. A through creative methods of play. appropriate career advancement paths together. resounding 98 per cent of the children in the NTUC Childcare also launched the Bright programme achieved their individualised goals Horizons Fund in 2006 so that children from In addition, the teachers take time after intervention in 2012. low-income families can attend pre-school to explain their lesson plans and BREAKING NEW GROUND, education through financial assistance and MEETING NEW NEEDS NTUC LearningHub will continue to refine its various support programmes that help them practices to me during the parent- training programmes to serve the changing level up with their peers. To date, over 3,000 teacher sessions.” said a parent. Good quality pre-school education and care can profile of Singapore’s workforce. To address children have benefited from this scheme with have a lasting impact on children’s development the demand among local professionals, some families paying as little as $5 a month and learning, and also play a big part in social managers, executives and technicians (PMETs) in childcare fees after various subsidies and mobility. As such, NTUC First Campus is for industry-recognised certifications such as assistance schemes from the Government. Initially established in 1982 as the NTUC committed to continuing to invest in improving Project Management Professional (PMP), Next With 111 centres island-wide, NTUC First Computer Training Centre, NTUC LearningHub its curriculum and programmes. U is aggregating best-in-class-programmes Campus is today the largest provider of was corporatised in 2004 with the mission from around the world, collaborating with childcare services and trusted by parents of to enhance the lifelong employability of To reach out to more families, and to enable leading organisations such as Disney Institute some 11,000 pre-schoolers in Singapore. Singapore’s workforce by providing high-quality, more children from low-income families to to offer quality training at affordable fees. Next innovative products and affordable learning. access quality education, NTUC First Campus U is also introducing new training delivery Tommy Lim Wei Meng, who spent his formative Since its incorporation, NTUC LearningHub set up a ‘Child Enabling Unit’ to step up modes to make upgrading more accessible, years happily in the NTUC Childcare centre at has trained close to 1.4 million executives and engagement efforts with parents to ensure innovative and fun for busy PMETs, while its Guillemard Road, is seeing his four-year-old working adults, and has worked with more children attend school regularly and to better e-shop (www.courseandexam.com) offers son Lim Jing Yang find similar joy in the same than 14,000 companies to identify training cater to children’s developmental needs. special rates on hardware and software to centre, now renamed My First Skool (MFS) at needs, define curriculum roadmaps and deliver Last year, together with the Ministry of Social further support learners. Guillemard Crescent. He shared, “My most vivid customised training programmes. In 2009, and Family Development (MSF) and other NTUC ENTERPRISE ANNUAL REPORT PROVIDING HOPE FOR THE FUTURE 46 47
QUICK FACTS OF QUICK FACTS OF NTUC FIRST CAMPUS NTUC LEARNINGHUB
OVER CHILDCARE FEES IMPACTED CHANGED 10X 111 AS LITTLE AS 2,513 950 THE LIVES OF GROWTH 35 CENTRES COURSES NUMBER OF 14,632 MORE THAN IN NUMBER YEARS OF ISLANDWIDE $5 TRAINERS ORGANISATIONS OF CENTRES INSPIRING A MONTH SINCE 2004 1.4M SINCE SET UP YOUNG AFTER SUBSIDY SINGAPORE IN 1977 LIVES FOR SOME WORKERS LOW-INCOME FAMILIES
HELPED HELPED 2,300 11,000 TRAIN TRAIN STAFF CHILDREN ENROLLED IN 14,427 339,481 2012 RETRENCHED OLDER WORKERS WORKERS ENABLING FULFILLING LIVES
We believe in building an inclusive community and strengthening family bonds so that three-generation families can care for their young and old. NTUC ENTERPRISE ANNUAL REPORT ENABLING FULFILLING LIVES 50 51
ENABLING KEY FULFILLING LIVES MILESTONES
The NTUC SEs uphold their social mission by developing initiatives 1999 that build an inclusive community and strengthen family bonds so NTUC Eldercare sets up ElderCare Trust to raise funds and defray costs of activities three-generation families can care for their young and old. organised for seniors.
2007 NTUC Eldercare launches two new programmes: Care@home service, an ensuite homecare service, and the Wellness Programme, a pilot initiative working with grassroots to promote active ageing and preventive care through social interest groups.
2010 NTUC Eldercare takes over management of the Henderson Home from the Chinese Women’s Association, a unique 3-in-1 facility comprising a sheltered home, day care centre and senior activity centre.
NTUC Eldercare launches the “Together We Care” caregivers training programme to equip caregivers with basic knowledge and skills to care for their elderly.
NTUC Eldercare opens its first integrated day care facility, Silver Circle Dakota, which features an accredited rehabilitation gym, and now includes a dementia care programme.
2011 NTUC Eldercare opens its first Silver ACE senior activity centre in Redhill to provide various social activities to under-privileged elderly residents living in rental flats.
Through NTUC Eldercare, we provide affordable families can enjoy the offerings of the NTUC SEs and quality care services for the elderly so they under one roof. With NTUC Media, we provide get the best out of their golden years. With affordable, quality media service so the voice of NTUC Choice Homes, we help the sandwiched every Singaporean can be heard. middle class meet their aspirations of owning private property by delivering quality housing at Collectively, these SEs aim to make a difference LEGEND fair and affordable prices. Through Mercatus, so working families can enjoy meaningful, we create an environment where working fulfilling lives. NTUC Eldercare NTUC ENTERPRISE ANNUAL REPORT ENABLING FULFILLING LIVES 52 53
QUICK FACTS OF NTUC ELDERCARE
UPLIFTING THE LIVES OF THE ELDERLY AND WORKING FAMILIES
With an ageing population and a rise in number ELDERCARE of working families in Singapore, the need DAY CARE for affordable, quality eldercare services is NTUC Eldercare has grown 8 6 166 SENIOR SENIOR FULL-TIME FEES FROM more crucial than ever before. That is what from one daycare centre in DAY CARE ACTIVITY STAFF AS LITTLE AS NTUC Eldercare set out to provide when it was Marsiling to eight Silver Circle CENTRES CENTRES AND established in 1997 in response to the rapidly $153 ageing population of Singapore. Over the centres providing full daycare PER MONTH* years, the SE has helped seniors lead happy, 70 PART-TIMERS meaningful and dignified lives through the services, six Silver ACE centres services it provides. offering social and recreational programmes to keep the under- As a social enterprise, its mission was to make quality eldercare services affordable and privileged elderly mentally and accessible to everyone. Today, NTUC Eldercare physically fit, and Henderson has grown from one daycare centre in Marsiling to eight Silver Circle centres providing full day Home; serving a total of more care services, six Silver ACE centres offering than 3,000 seniors. social and recreational programmes to keep the under-privileged elderly mentally and physically fit, and Henderson Home; serving a total of together the social, healthcare and support more than 3,000 seniors. elements to promote assisted and independent living amongst senior citizens. NTUC Eldercare Last year, NTUC Eldercare piloted the Train- will be expanding its range of services to and-Place project to encourage locals to take offer not only social care but also nursing on part-time work as therapists, befrienders and rehabilitation care as well as dementia or caregivers in the eldercare sector. In March management. There are also plans to open two this year, NTUC Eldercare, in collaboration with new Senior Care Centres in Serangoon and Toa NTUC Unity Healthcare, set up self-service Payoh, which will include additional nursing stations at five Silver ACE centres across the components, and another Silver ACE Centre in IMPROVING island to enable the elderly staying in the the Bukit Merah area. These new centres are THE LIVES OF 114 neighbourhood to enjoy free checks on their targeted to be operational by early 2014. ELDERLY blood pressure and body mass index. This 3,000 SERVED VIA complimentary service is estimated to benefit ELDERLY HOME CARE 1,200 senior citizens. ANNUALLY SERVICE PER MONTH Looking ahead, NTUC Eldercare will continue to promote active ageing by improving the quality of life for the elderly. In support of the ageing- in-place initiative, Henderson Home will adopt an integrated service model, which brings * After eligible subsidies. THE NTUC SE DIFFERENCE
We focus on doing good, and it is our unique DNA that sets us apart and drives us to do things differently. NTUC ENTERPRISE ANNUAL REPORT THE NTUC SE DIFFERENCE 56 57
THE NTUC SE DIFFERENCE
In the history of the NTUC Social Enterprises (SEs), we have seen new industries created, new benchmarks set for existing industries and new solutions developed to meet core needs. Over time, many of the NTUC SEs have become household names. Not everyone, however, is aware of the role they have played and continue to play in many aspects of life for Singapore’s working families.
Doing good is the unique DNA and the singular purpose of the NTUC SEs. This focus on The SEs are designed by structure meeting needs is what drives the NTUC SEs to do things differently. Our social enterprise to always focus on the customers, model and guiding principles set us apart from members and the public first, both commercial entities as well as voluntary welfare organisations, allowing us to make a before the shareholders. unique difference to the social arena.
receive minimal dividend payouts. As such, LIVING OUT OUR UNIQUE DNA shareholders’ claim on the economic value of the co-operative is limited, with payable Doing well, or being financially sustainable, dividends capped at 10% of the par value of is what makes it possible for the social impact share capital. of the NTUC SEs to continue to grow. However, unlike commercial entities that seek to The SEs’ by-laws also stipulate that shares maximise profits, doing well is a means for the cannot be transferred and are redeemable at NTUC SEs to deliver on their primary objective par or net asset value, whenever is lower. This of doing even more good. allows the SEs to retain more earnings to build up reserves and capital to fund their growth and This principle is in fact hard-coded into capability to deliver greater social impact. the DNA of the NTUC SEs. Governed by the Co-operative Societies Act, investor returns In short, in order to be effective, the NTUC SEs are not maximised but are, instead, re-invested have to be able to operate and compete within to satisfy the social needs of the broader prevailing market conditions. They have to community. exercise sound management and commercial discipline to achieve cost efficiency. While they do not seek to maximise profits, they need to be profitable to cover operating costs, fund Doing well, or being financially investment and growth, and provide for business risks. This balance is not always easy, but the sustainable, is what makes it NTUC SEs will continue to persevere so as to possible for the social impact of fulfil their social mission of doing good. the NTUC SEs to continue to grow.
Beyond their charter, the SEs are designed by structure to always focus on the customers, members and the public first, before the shareholders. The majority of NTUC SEs’ shareholders comprise other not-for-profit co-operatives and trade unions, which NTUC ENTERPRISE ANNUAL REPORT THE NTUC SE DIFFERENCE 58 59
PIONEERING WORK
The relentless drive to meet new and emerging learning through a model heartland centre in needs has seen the NTUC SEs taking on Serangoon Central. leadership or first-mover position in many areas. With a firm belief that everyone, NTUC Foodfare will be pioneering rich or poor, should be able to NTUC Foodfare will be pioneering an operating an operating model to manage The very first NTUC SE to be formed was NTUC model to manage the new Bukit Panjang Income. It was set up with a specific purpose – afford financial protection for Hawker Centre, the first of a series of hawker the new Bukit Panjang Hawker to provide low-wage workers and their families their family, NTUC Income set out centres to be built by the Government over the Centre, the first of a series of with financial protection. At that time, insurance to meet this need. This remains next decade. Slated to open in 2015, this new hawker centres to be built by the companies were not interested to serve this outlet will enable NTUC Foodfare to continue to segment of the population in view of the the core mission of NTUC Income deliver on its social mission to bring affordable Government over the next decade. unattractive returns. This, however, meant that some 40 years later. Today, NTUC cooked food into the heartlands. many families were left vulnerable should sole breadwinners be unable to continue providing Income is an industry leader for them upon the loss of jobs or lives. in redefining how insurance is Today, NTUC First Campus is a bought and sold. With a firm belief that everyone, rich or poor, leader, not only in childcare and should be able to afford financial protection for their family, NTUC Income set out to meet pre-school services, but also in this need. This remains the core mission of family income. At that time, many were unable early childhood development. NTUC Income some 40 years later. Today, NTUC to do so as there were inadequate facilities to Income is an industry leader in redefining how care for their children. Once again, the NTUC insurance is bought and sold. In 2011, NTUC SEs stepped into the fray, forming NTUC Income was the first in the industry to launch Childcare, now known as NTUC First Campus, NTUC Foodfare also opened its first outlet at an in-house, rapid response 24-by-7 accident- and taking over the management of ten Marina Bay Financial Centre last year so that, scene assistance team, a service typically crèches from the government in 1977 as well beyond the heartlands, office workers in the outsourced by insurers in Singapore. Since its as investing in both the quality and reach of its Central Business District can have affordable inception, Orange Force has assisted more than services. The business remained unprofitable for food options. 15,000 motorists. many years until awareness and appreciation of childcare services grew to a point where private The health and community care sector, which Last year, it again revolutionised the industry by sector players saw commercial viability in the will become increasingly prominent because overhauling its contracts from complex legalese 1990s. Today, NTUC First Campus is not only a of Singapore’s ageing population, positions into plain English to help customers make more leader in providing childcare services, but also NTUC SEs; namely NTUC Eldercare and NTUC informed decisions. This Honest Insurance in training early childhood professionals for the Unity Healthcare, to do more in this area. NTUC initiative propelled NTUC Income to become the industry through SEED Institute. Last year, the Eldercare is working on a pilot project for the first insurance company in Asia to undertake institute trained over half of the qualified pre- government’s new model of Senior Care centres a major Crystal Mark initiative, a globally school educators who graduated in Singapore. to offer a higher level of elderly care. Over the recognised standard for plain business English. next few years, more eldercare centres and By the end of 2013, NTUC First Campus would pharmacies will also be set up to cater to the In the mid-1970s, NTUC again saw a need – this have taken a further leap forward in setting new growing demand. time, it was to support mothers who wished to benchmarks in designing childcare spaces that join the workforce in order to contribute to the are environmentally friendly and conducive for NTUC ENTERPRISE ANNUAL REPORT 60
SHAREHOLDERS’ LISTING
KEEPING THE FREE MARKET A R IN CHECK IN TIMES OF CRISIS • Air Transport Executive Staff Union (AESU) • Reuters Local Employees Union (RLEU) • Amalgamated Union of Public Daily Rated Workers (AUPDRW) S • Amalgamated Union of Public Employees (AUPE) One of the key roles of the NTUC SEs is to set • Sembawang Shipyard Employees Union (SSEU–sembawang) • Amalgamated Union of Statutory Board Employees (AUSBE) price benchmarks and moderate prices so • Shipbuilding and Marine Engineering Employees’ • Attractions, Resorts & Entertainment Union (AREU) that basic essentials are always affordable for Driven by its social mission, Union (SMEEU) working families. At no time is the importance • SIA Engineering Company Engineers & NTUC FairPrice, then known as B Executives Union (SEEU) of price stabilisation seen more clearly than in NTUC Welcome, kept the prices • Building Construction and Timber Industries • Singapore Airlines Staff Union (SIASU) moments of crises. Employees’ Union (BATU) • Singapore Airport Terminal Services Workers’ of basic essentials affordable so Union (SATSWU) C • Singapore Bank Employees’ Union (SBEU) NTUC FairPrice was formed during the oil crisis • Singapore Bank Officers’ Association (SBOA) that working families would not • Chemical Industries Employees’ Union (CIEU) in the 1960s-70s, where basic essentials such • Singapore Chinese Teachers’ Union (SCTU) as rice, flour and sugar were in short supply and be held to ransom by profiteers. • Singapore Industrial & Services Employees’ Union (SISEU) D profiteering was rampant. Driven by its social • Singapore Insurance Employees’ Union (SIEU) • DBS Staff Union (DBSSU) • Singapore Interpreters’ and Translators’ Union (SITU) mission, NTUC FairPrice, then known as NTUC • dnata Singapore Staff Union (DSSU) • Singapore Labour Foundation (SLF) Welcome, kept the prices of basic essentials • Singapore Malay Teachers’ Union (SMTU) affordable so that working families would not be E • Singapore Manual & Mercantile Workers’ Union (SMMWU) held to ransom by unethical merchants. More • Education Services Union (ESU) • Singapore Maritime Officers’ Union (SMOU) • ExxonMobil Singapore Employees Union (EMSEU) • Singapore National Union of Journalists (SNUJ) recently, during the SARS crisis in 2003, NTUC • Singapore Organisation of Seamen (SOS) FairPrice again came to the forefront to hold the F • Singapore Port Workers Union (SPWU) supply and prices of eggs and vegetables stable, • Singapore Press Holdings Employees’ Union (SPHEU) • Food, Drinks and Allied Workers’ Union (FDAWU) • Singapore Refining Company Employees’ Union (SRCEU) thus discouraging panic buying. • Singapore Shell Employees’ Union (SSEU-shell) H • Singapore Stevedores’ Union (SSU) During 2008, when inflation soared, NTUC • Healthcare Services Employees’ Union (HSEU) • Singapore Tamil Teachers’ Union (STTU) • Housing and Development Board Staff Union (HDBSU) • Singapore Teachers’ Union (STU) FairPrice was the last to raise the price of • Singapore Technologies Electronics Employees’ rice even when many suppliers had done so. Union (STEEU) I • Singapore Union of Broadcasting Employees (SUBE) Similarly, when major floods hit Thailand in 2011 • Inland Revenue Authority of Singapore Staff Union (IRASSU) and threatened to impact rice prices yet again, • Singapore Urban Redevelopment Authority Workers’ Union (SURAWU) it initiated a price freeze on all its Housebrand K • SPRING Singapore Staff Union (SSSU) Thai and Vietnamese rice. • Keppel Employees Union (KEU) • Staff Union of NTUC-ARU (SUN) • Keppel FELS Employees’ Union (KFEU) NTUC Foodfare also played its part, maintaining T the prices of its cooked food and beverages and M • Times Publishing Group Employees’ Union (TPGEU) • Metal Industries Workers’ Union (MIWU) keeping prices stable during the 2011 downturn. U N • Union of ITE Training Staff (UITS) In times of health emergencies such as the • National Taxi Association (NTA) • Union of Power and Gas Employees (UPAGE) recent haze season, NTUC FairPrice and NTUC • National Trades Union Congress (NTUC) • Union of Security Employees (USE) Unity worked to ensure sufficient supplies • National Transport Worker’s Union (NTWU) • Union of Telecoms Employees of Singapore (UTES) • Natsteel Employees’ Union (NEU) • United Workers of Electronics & Electrical of essential items such as face masks were • Ngee Ann Polytechnic Academic Staff Union (NPASU) Industries (UWEEI) accessible to the public at affordable prices, • United Workers of Petroleum Industry (UWPI) thus effectively discouraging profiteering. P • Port Officers’ Union (POU) • Public Utilities Board Employees’ Union (PUBEU) A Member of the Labour Movement
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