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MAS: 57% of senior management positions in banking industry held by foreigners

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Last Saturday (15 Aug), retired Singaporean banker Raymond Koh Bock Swi wrote to ST Forum urging the government to examine the workforce composition in banks operating in Singapore (‘Retired banker: Common market knowledge that some banks sideline SG talents‘).

He wrote to ST Forum in the midst of a public uproar over a recent finding by the Manpower Ministry (MOM) that 30 of the 47 companies put on watchlist for suspected discriminatory hiring practices, came from the financial and professional services sectors. The 30 were found to have a “high concentration of PMETs from single nationalities” (‘SG banker: My trading floor full of staff from “a particular Asian country” with family members too‘).

“As a retired senior banker, I can say categorically that in the past two decades, many foreigners hired in Singapore’s finance sector have been for upper-middle to senior management positions,” Mr Koh wrote.

“It has been common market knowledge that certain big, long established foreign banks have been sidelining Singaporean talent in favour of foreign hires, and I strongly urge the authorities to more closely scrutinise the situation in our finance industry.”

Mr Koh, whose last position before his retirement was Vice President and Vice Chairman of the Credit Committee in Arab Bank, is a living proof that Singapore does have its own talents and that Singaporean talents are more than capable to hold senior management positions in the banks in Singapore.

Menon: 43 per cent of senior management positions held by S’poreans in banking industry

Thanks to Mr Koh’s letter, the Managing Director of Monetary Authority of Singapore (MAS), Ravi Menon, replied on ST Forum today (19 Aug) confirming that the majority of senior management positions in the banking industry are held by foreigners (‘Forum: 70% of senior roles in retail banks’ local functions held by Singaporeans‘).

In fact, ST even deliberately chose a “nice sounding” title for Menon’s letter in its attempt to “downplay” Menon’s confirmation that majority of senior management positions in banking are held by foreigners.

“MAS closely monitors these FIs’ (financial institutions) workforce profile by locals (citizens and PRs separately) and foreigners, broken down by seniority, business function, qualifications, and so on,” Menon said.

However, despite MAS’ “close monitoring”, majority of senior management positions in the banking sector are still held by foreigners.

Menon revealed, “MAS estimates that Singapore citizens account for about 70 per cent of senior management roles in retail banks’ local functions. Across the entire sector, the proportion is about 43 per cent, reflecting Singapore’s role as an international financial centre.”

That is to say, Singaporeans only occupied 43 per cent of the senior management positions in the entire banking sector. In other words, foreigners held the other 57 per cent. Out of 10 senior bankers in Singapore, one would expect 6 to be foreigners.

Menon tried to explain that because Singapore attracts more regional and global HQ functions in the financial sector, it also means a higher proportion of foreigners in senior management positions as these financial institutions will “draw from a global talent pool” to fill them. But they create “more good jobs and opportunities for Singaporeans”, Menon added.

MAS continues to talk about developing Singaporean core

Menon shared that MAS has established a $125 million package earlier this year to encourage the financial institutions to “retain, train and hire Singaporeans”.

“We want to see a strong Singaporean core complemented by high-quality and diverse foreign talent in every major FI,” he said. “MAS engages FIs’ senior management on their workforce profiles and plans to grow the Singaporean core. We will intensify these engagements.”

It is noted that the MAS has been talking about developing a Singaporean core in the financial industry 7 years ago, when then DPM Tharman Shanmugaratnam revealed at the time that MAS together with MOM had started “very active discussions” with the financial institutions in Singapore about their plans to develop a “Singaporean core” (‘MAS has to urge banks to build up Singaporean core 7 years after Tharman’s call in 2013‘). Today, MAS is still talking about developing Singaporean core.

Notwithstanding that majority of senior management positions are held by foreigners in the banking industry, Menon also took the opportunity to share that, overall, Singaporeans make up 70 per cent in the financial sector, with PRs making up another 14 per cent.

Nevertheless, Menon assured, “MAS has been working with FIs to develop a strong local leadership pipeline, and the industry is making progress.”

“My colleagues and I are committed to growing the Singaporean core in the financial sector. We do this by working with our FIs to develop Singaporeans: building critical skills, broadening capabilities, gaining international exposure, and ensuring equal opportunity to take on the many good jobs and leadership roles that our financial centre will continue to create,” he promised.

Menon even said he has asked his team to reach out to the retired Singaporean banker Mr Koh, who wrote the scalding ST Forum letter, for his views and suggestions, in an attempt to show MAS’ commitment to grow the Singaporean core.

By 2025 GE, the Singaporean voters would have a chance to ascertain if Menon has, indeed, succeeded this time to grow the Singaporean core.

Hiring own kinds

One of the dangers of having too many foreigners holding senior management positions is that they will have the power to hire. The manager may just end up hiring too many of their “own kinds”.

As far back as 2013, then DPM Tharman told the media that the government had already noticed in the different “hiring mixes” among the banks in Singapore (‘Labour chief now suggests to tighten EP policies after being voted out as MP in GE2020‘).

Singaporeans were found to have been sidelined in favour of hiring foreigners from the “same nationality”. Things became so bad that then DPM Tharman and Manpower Minister Tan Chuan Jin had to call up the banks to ask them stop the practice of “hiring their own kinds”. This was revealed by Minister Tan in Parliament in 2013.

Minister Tan did not name the banks nor the nationality of the hiring managers but many netizens have pointed out that they were Indian nationals.

In fact, prior to 2013, complaints and concerns about high numbers of foreigners in the financial sector have already been raised by Singaporeans. The high numbers were gradually built-up since Singapore signed the Comprehensive Economic Cooperation Agreement (CECA) with India in 2005.

In the recent public uproar over the findings by MOM that 47 firms were put on watchlist for suspected discriminatory hiring practices, one is a financial institution with almost three-quarters of their PMETs coming from the “same nationality” and another, a bank with two-thirds of its PMETs also of the “same nationality”.

 

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Chee Soon Juan questions Shanmugam’s $88 million property sale amid silence from Mainstream Media

Dr Chee Soon Juan of the SDP raised concerns about the S$88 million sale of Mr K Shanmugam’s Good Class Bungalow at Astrid Hill, questioning transparency and the lack of mainstream media coverage. He called for clarity on the buyer, valuation, and potential conflicts of interest.

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On Sunday (22 Sep), Dr Chee Soon Juan, Secretary General of the Singapore Democratic Party (SDP), issued a public statement on Facebook, expressing concerns regarding the sale of Minister for Home Affairs and Law, Mr K Shanmugam’s Good Class Bungalow (GCB) at Astrid Hill.

Dr Chee questioned the transparency of the S$88 million transaction and the absence of mainstream media coverage despite widespread discussion online.

According to multiple reports cited by Dr Chee, Mr Shanmugam’s property was transferred in August 2023 to UBS Trustees (Singapore) Pte Ltd, which holds the property in trust under the Jasmine Villa Settlement.

Dr Chee’s statement focused on two primary concerns: the lack of response from Mr Shanmugam regarding the transaction and the silence of major media outlets, including Singapore Press Holdings and Mediacorp.

He argued that, given the ongoing public discourse and the relevance of property prices in Singapore, the sale of a high-value asset by a public official warranted further scrutiny.

In his Facebook post, Dr Chee posed several questions directed at Mr Shanmugam and the government:

  1. Who purchased the property, and is the buyer a Singaporean citizen?
  2. Who owns Jasmine Villa Settlement?
  3. Were former Prime Minister Lee Hsien Loong and current Prime Minister Lawrence Wong informed of the transaction, and what were their responses?
  4. How was it ensured that the funds were not linked to money laundering?
  5. How was the property’s valuation determined, and by whom?

The Astrid Hill property, originally purchased by Mr Shanmugam in 2003 for S$7.95 million, saw a significant increase in value, aligning with the high-end status of District 10, where it is located. The 3,170.7 square-meter property was sold for S$88 million in August 2023.

Dr Chee highlighted that, despite Mr Shanmugam’s detailed responses regarding the Ridout Road property, no such transparency had been offered in relation to the Astrid Hill sale.

He argued that the lack of mainstream media coverage was particularly concerning, as public interest in the sale is high. Dr Chee emphasized that property prices and housing affordability are critical issues in Singapore, and transparency from public officials is essential to maintain trust.

Dr Chee emphasized that the Ministerial Code of Conduct unambiguously states: “A Minister must scrupulously avoid any actual or apparent conflict of interest between his office and his private financial interests.”

He concluded his statement by reiterating the need for Mr Shanmugam to address the questions raised, as the matter involves not only the Minister himself but also the integrity of the government and its responsibility to the public.

The supposed sale of Mr Shamugam’s Astrid Hill property took place just a month after Mr Shanmugam spoke in Parliament over his rental of a state-owned bungalow at Ridout Road via a ministerial statement addressing potential conflicts of interest.

At that time, Mr Shanmugam explained that his decision to sell his home was due to concerns about over-investment in a single asset, noting that his financial planning prompted him to sell the property and move into rental accommodation.

The Ridout Road saga last year centred on concerns about Mr Shanmugam’s rental of a sprawling black-and-white colonial bungalow, occupying a massive plot of land, managed by the Singapore Land Authority (SLA), which he oversees in his capacity as Minister for Law. Minister for Foreign Affairs, Dr Vivian Balakrishnan, also rented a similarly expansive property nearby.

Mr Shanmugam is said to have recused himself from the decision-making process, and a subsequent investigation by the Corrupt Practices Investigation Bureau (CPIB) found no wrongdoing while Senior Minister Teo Chee Hean confirmed in Parliament that Mr Shanmugam had removed himself from any decisions involving the property.

As of now, Mr Shanmugam has not commented publicly on the sale of his Astrid Hill property.

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Redditors question support for PAP over perceived arrogance and authoritarian attitude

Despite Senior Minister Lee Hsien Loong’s warning that slimmer electoral margins would limit the government’s political space “to do the right things”, many Redditors questioned their support for the ruling PAP, criticising its perceived arrogance. They argued that SM Lee’s remarks show the party has ‘lost its ways’ and acts as if it alone can determine what is right. Others noted that the PAP’s supermajority allows for the passage of unfavourable policies without adequate scrutiny.

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In a recent speech, Senior Minister Lee Hsien Loong warned that “if electoral margins get slimmer, the government will have less political space to do the right things.”

Mr Lee, who served as Prime Minister for 20 years, highlighted the risks associated with increasingly competitive politics.

“It will become harder to disregard short-term considerations in decision-making. The political dynamics will become very different,” he stated during his speech at the Annual Public Service Leadership Ceremony 2024 on 17 September.

“Singaporeans must understand the dangers this creates, and so must the public service,” SM Lee stressed.

SM Lee pointed out that Singapore faces formidable internal and external challenges in the years ahead, with rising expectations and demands from citizens.

As growth becomes harder to achieve and politics becomes more fiercely contested, he warned, “Things can go wrong for Singapore too.”

He urged vigilance in preparing for an uncertain future, noting, “As the world changes, and as the generations change, we must do our best to renew our system – to ensure that it continues to work well for us, even as things change.”

Critique of PAP’s Arrogance and Disconnect from Singaporeans

The People’s Action Party (PAP) experienced a notable decline in its vote share during the 2020 General Election, securing 61.24% of the votes and winning 83 out of 93 seats, a drop from 69.9% in 2015.

A significant loss was in Sengkang GRC, where the PAP team, led by former Minister Ng Chee Meng, was defeated by the Workers’ Party (WP).

In discussions on Reddit, some users questioned why they should support the ruling PAP, criticising the party’s perceived arrogance.

They pointed out that SM Lee’s recent remarks illustrate that the party has strayed from effectively serving Singaporeans and seems to believe it has the sole authority to decide what is right.

Others highlighted that the PAP’s super-majority in Parliament enables the passage of unfavourable policies without sufficient scrutiny.

One comment acknowledged that while many older Singaporeans remain loyal to the PAP due to its past achievements, younger generations feel the party has failed to deliver similar results.

There is significant frustration that essentials like housing and the cost of living have become less affordable compared to previous generations.

The comment emphasised the importance of the 2011 election results, which they believe compelled the PAP to reassess its policies, especially concerning foreign labor and job security.

He suggested that to retain voter support, the PAP must continue to ensure a good material standard of living.

“Then, I ask you, vote PAP for what? They deserve to lose a supermajority. Or else why would they continue to deliver the same promises they delivered to our parents? What else would get a bunch of clueless bureaucrats to recognise their problems?”

Emphasising Government Accountability to the Public

Another Redditor argued that it is the government’s responsibility to be accountable to the people.

He further challenged SM Lee’s assertion about having less political space to do the right things, questioning his authority to define what is “right” for Singapore.

The comment criticised initiatives like the Founder’s Memorial and the NS Square, suggesting they may serve to boost the egos of a few rather than benefit the broader population. The Redditor also questioned the justification for GST hikes amid rising living costs.

“Policies should always be enacted to the benefit of the people, and it should always be the people who decide what is the best course of action for our country. No one should decide that other than us.”

The comment called for an end to narratives that present the PAP as the only party capable of rescuing Singapore from crises, stating that the country has moved past the existential challenges of its founding era and that innovative ideas can come from beyond a single political party.

Another comment echoed this sentiment, noting that by stating this, SM Lee seemingly expects Singaporeans to accept the PAP’s assumption that they—and by extension, the government and public service—will generally do the “right things.”

“What is conveniently overlooked is that the point of having elections is to have us examine for ourselves if we accept that very premise, and vote accordingly.”

A comment further argued that simply losing a supermajority does not equate to a lack of political space for the government to make the right decisions.

The Redditor express frustration with SM Lee’s rhetoric, suggesting that he is manipulating public perception to justify arbitrary changes to the constitution.

Concerns Over PAP’s Supermajority in Parliament

Another comment pointed out that the PAP’s supermajority in Parliament enables the passage of questionable and controversial policies, bypassing robust debate and discussion.

The comment highlighted the contentious constitutional amendments made in late 2016, which reserved the elected presidency for candidates from a specific racial group if no president from that group had served in the previous five terms.

A comment highlighted the contrast: in the past, the PAP enjoyed a wide electoral margin because citizens believed they governed effectively. Now, the PAP claims that without a substantial electoral margin, they cannot govern well.

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