Debated in Parliament on 14 Jan 2013.
Order for Second Reading read.
Mdm Speaker, I beg to move, "That the Bill be now read a Second time."
Madam, let me first set out the context for the proposed Bill to establish the Singapore Accountancy Commission (SAC).
Singapore's reputation as a trusted business hub is underpinned by our emphasis on strong corporate governance and a robust regulatory framework. In part, this has been due to the quality of our accountancy professionals in preparing and upholding financial reporting standards and best practices.
The accountancy sector is also experiencing strong growth. In the 10 years between 2000 and 2010, operating receipts grew at a compounded annual growth rate of about 6% while export of services increased twelve-fold .
Accountancy related firms alone employed more than 11,000 workers, with the majority being professional staff. This is comparable to the medical and legal sectors which have about 5,000 and 10,000 professionals respectively. Many accountancy trained professionals also serve in key roles like chief financial officers and finance executives within companies. In short, the accountancy sector is an important contributor to Singapore's vibrant business landscape.
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In 2008, recognising its potential for future growth, MOF convened the Committee to Develop the Accountancy Sector (CDAS), to undertake a holistic review of the sector. Members of the business community, audit firms and professional accountancy bodies were extensively consulted as part of this review. In its final report submitted in 2010, CDAS unveiled an exciting vision of Singapore as a leading global accountancy hub.
One of the key recommendations in the CDAS report was to set up the SAC, to lead the transformation. Significantly, the establishment of the SAC will put the accountancy profession on a similar footing as the legal, medical, architectural and engineering professions in Singapore which are championed by their respective statutory bodies.
One important consideration in the set-up of the SAC is how it would interact with the professional bodies. In advanced jurisdictions such as the UK and Australia, the professional bodies actively seek to uplift the standing of the sector and quality of their members, which is also the case in Singapore. Given the merits of a private-public partnership approach, the SAC will not be set up as a membership body to avoid duplication with existing professional bodies. Instead, it will act as an umbrella body pulling together the resources and coordinating the efforts of relevant stakeholders such as the regulators, professional bodies and audit firms. The establishment of the SAC is set out in Parts I to VI of the SAC Bill.
Let me say something about Chartered Accountants in Singapore. As part of its review, CDAS also noted that many leading markets such as Australia, Hong Kong, the United Kingdom and the United States have their own distinct accountancy professional qualifications which are recognised for their rigour and international portability. Although we already have high-quality accountancy training in our universities, CDAS recommended that it was critical for Singapore to develop our own high-quality and rigorous post-university Singapore Qualification Programme (SQP) if we aspired to be a leading accountancy hub.
A candidate who successfully completes the SQP will be eligible to register himself as a Chartered Accountant of Singapore. The introduction of the SQP and the Chartered Accountant designation provides an opportunity to build up the international stature of our accountancy professionals and will open up significant new opportunities for them.
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The use of the Chartered Accountant designation will be protected under the SAC Act to ensure that we uphold its quality and international standing. The relevant provisions are set out in Part VII of the Bill.
In line with the partnership approach I outlined earlier, we will appoint the Institute of Certified Public Accountants of Singapore (ICPAS), as a Designated Entity to oversee the registration of a Chartered Accountant on behalf of the SAC. ICPAS has a long and established history in our accountancy sector. It is also the largest professional body in Singapore with about 25,000 members.
In addition to completing the SQP, we will require a Chartered Accountant to also be a member of the Designated Entity and to satisfy the professional conduct expected of a Chartered Accountant before registering him.
Therefore, as a Designated Entity, ICPAS has the important responsibility of ensuring that Chartered Accountants meet the highest standards of integrity, professional ethics and competence expected of them. ICPAS will thus be required to take necessary disciplinary actions against its member if he has contravened any code of conduct, standards or ethics.
The success of the Singapore QP hinges on the international recognition and standing of the Chartered Accountant designation. ICPAS therefore has a very critical role to play, working with the SAC.
As we take bold steps to transform the accountancy sector, particularly with the introduction of a new professional designation, we ought to recognise the concerns of stakeholders who will be impacted by the changes, and to manage the transition carefully.
Let me share with Members our intentions for two particular groups of stakeholders. The first group comprises existing ICPAS members who are designated as Certified Public Accountants (CPA) of Singapore. We fully recognise that many of our CPAs are respected professionals with years of industry experience. Therefore, the transitional arrangements should continue to allow them to enjoy their current standing. The second group are students who are either registered to commence or are currently in the midst of taking accountancy degrees at our local universities. These students had chosen the accountancy course based on their knowledge of the current accountancy sector landscape and should not be disadvantaged by the forthcoming changes.
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A special committee to address transitional arrangements was formed by the Pro-Tem SAC in September last year and has been in intense discussion since then. The details of the transitional arrangements will be released when deliberations are complete. To allow sufficient time for the finalisation and smooth implementation of the transitional arrangements, the Bill provides that the Minister can within a period of two years, prescribe provisions such as the registration of existing CPA Singapore holders as Chartered Accountants.
Our aim is to ensure clarity and provide sufficient time for affected persons to make the transition to the Chartered Accountant designation. We are actively engaging key industry players and professional bodies, as well as faculty members and accountancy students of the local universities on their views.
The establishment of the SAC, the introduction of the Singapore QP and Chartered Accountant designation herald a new chapter for the accountancy sector.
I would like to take this opportunity to thank the Pro-Tem SAC, chaired by Mr Michael Lim, which has been working tirelessly over the last two years to put in place the building blocks for the SAC and the Singapore QP. Professional bodies, in particular ICPAS, have also demonstrated strong commitment and support which are very much appreciated. When it is formally established, SAC will continue the work of the Pro-Tem SAC and strengthen collaboration with professional bodies. Its immediate priorities will be to ensure that the Singapore QP gets off to a good start and that adequate transitional arrangements are put in place.
Madam, in conclusion, I should highlight that the setting up of the SAC is an important milestone in the transformation of our accountancy sector, but the road ahead is still quite long. We will need to work hard and stay focused to ensure the rigour of the Singapore QP and build up the professional standing of Chartered Accountants. Only then can we secure Mutual Recognition Agreements for our accountants with other international jurisdictions which is crucial to their international mobility. While ambitious, I believe that we can achieve this goal together if we have the support of all stakeholders. Mdm Speaker, I beg to move.
Question proposed.
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Mdm Speaker, thank you for allowing me to speak on this Bill. At the outset, I would like to declare that I am an accountant and a member of the Institute of Certified Public Accountants of Singapore (ICPAS). I am also the Vice-President of ICPAS, but I stand here to speak in my own personal capacity. Madam, I would like to make a request to hand over a handout to all Members for some clarification.
Proceed, please. [Copies of handout distributed to hon Members.]
This Bill has generally positive implications for an important sector of our economy.
Developing Singapore's Accountancy Sector. The Singapore accountancy sector plays a substantial role in the growth and development of the Singapore Economy. Firstly, it provides access to professional accountancy services and talents needed by the different sectors of the economy.
Besides catering to domestic demand, the accountancy sector itself is also experiencing significant growth opportunities on the exports of its professional services to the region as it has shown double-digit growth on a compounded annual growth rate basis on its exports of professional services to the region since 2000.
Against this backdrop, this Bill is timely as it seeks to establish the Singapore Accountancy Commission, which will mark an important milestone and start a new chapter in the development of the Accountancy sector in Singapore, and our effort to transform Singapore into a leading global Accountancy Hub for the Asia Pacific by 2020.
The establishment of the Singapore Accountancy Commission (SAC) will lend weight and add impetus critical to the development of the accountancy sector in Singapore and the transformation of Singapore into a leading global accountancy hub.
More significantly, its establishment clearly reflects the Government's strong support of and firm commitment to follow up on the recommendations
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of the Committee to Develop the Accountancy Sector (CDAS).
The final report of this Committee, which the Minister had established in December 2008 to conduct a holistic review of the Singapore accountancy sector and profession, with the aim to position Singapore as a leading international centre for accountancy services and professionals, was formally accepted by the Minister in May 2010.
Under its third strategic thrust of establishing strong infrastructure and institutions for the accountancy sector, the Committee recommended the establishment of a Singapore Accountancy Commission.
According to the Report, this strategic thrust "is a call for concerted action from all the relevant stakeholders who can, and should, make a difference in turning the Singapore accountancy vision into a reality".
Global role for ICPAS. One of these relevant stakeholders is the Institute of Certified Public Accountants of Singapore (ICPAS). In promoting the accountancy sector, this Bill, also creates an opportunity for the Singapore Accountancy Commission to work with ICPAS to achieve that objective and at the same time allow the latter to increase its own global profile.
As stipulated by this Bill, the SAC will now do many of the functions that ICPAS currently does. For instance, one of the functions of the SAC should be to develop, provide for, administer, facilitate or collaborate on the development, provision or administration, of programmes, qualifications, certifications, specialisations or continuing professional development relating to the accountancy sector and its related fields in Singapore.
At present, ICPAS administers the professional qualification of the accountancy sector here and accords the CPA Singapore designation. The Bill also introduces a new designation, the Chartered Accountant of Singapore.
Thus, the Bill will now allow the SAC to own the Chartered Accountant of Singapore Qualification, and migrate all current CPA members to this new qualification. In doing so, the SAC will become the owners of this designation and qualification of all ICPAS members and then fulfil some of the functions that ICPAS currently does in terms of the professional qualification of the accountancy profession here, except for membership registration. SAC will however appoint ICPAS only as an administrator for the SAC-owned Singapore
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Qualification Programme (SQP).
However, I feel that the CDAS Report actually envisioned a more complementary role between SAC and ICPAS, with the SAC actually maintaining more of a supervisory, regulatory function. For example, recommendation 10 of the Report states that the SAC should be given "formal oversight responsibilities over the administration of" the Singapore branded professional accountancy qualification and the necessary accreditation processes.
I doubt that the recommendations by the Committee called for the SAC to take complete ownership of the qualification and the SQP.
Take the third strategic thrust of the Report mentioned earlier which calls for concerted action from all relevant stakeholders who can, and should, make a difference in turning the Singapore accountancy vision into a reality. Besides calling for the establishment of the Singapore Accountancy Council, the recommendation also proposed for the transformation of ICPAS into a professional accountancy body with a global membership, outlook and standing.
This recommendation was expanded later in the report to entail two broad strategic areas – firstly, to review ICPAS' Constitution to ensure its relevance and alignment with ICPAS' mission as the national professional accounting body and that the ensuing governance and leadership structure and system are consistent with that of a professional accountancy body with a global membership, outlook and standing; and secondly, to review its infrastructure to ensure that they support the vision of the ICPAS becoming a professional accountancy body with a global membership, outlook and standing.
I can assure you that ICPAS has seen to both recommendations, to do a thorough review of its Constitution, introduce a new governance and leadership structure, as well as take steps to expand its infrastructure and fine-tune its processes to ensure that it is able to effectively play the role envisioned in the CDAS report.
I feel that ICPAS has the necessary capabilities to own and administer the SQP by itself and has taken steps to ensure that it can play this role effectively to aid in the overall development of the accountancy sector here.
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So, the SAC should allow ICPAS to play this role, while it maintains broader and strategic oversight of the sector, including the SQP, as envisioned by the CDAS report. The widely held argument may be that in accountancy, like its other professional sector counterparts – as mentioned by the Minister just now, law, architecture and medicine – it is important to standardise the professional qualifications and accreditation processes under a centralised national body. However, there are inherent differences between the accountancy sector and these other professional sectors, which reduce its need to come under a blanket regulatory body.
To illustrate, the accountancy profession can be divided into broad categories – first, professional accountants in business; and second, public accountants who require licences from ACRA to practise as auditors. Of the more than 25,000 members of ICPAS, about 1,000 are holding ACRA licences to be public accountants and/or auditors. Some other 6,000 of our members are working in audit firms as employees and so they do not need any licences.
The remaining 70% of the accountants are engaged as professional accountants in business and commerce. Hence, with only about 1,000 licensed public accountants, ACRA is sufficient to provide a regulatory role and there is no need to create a new structure to provide oversight of the entire profession because 70% of the professional accountants in Singapore who are engaged in business and commerce, and the remaining 6,000 professional accountants employed in audit firms are subject to the ICPAS membership rules and regulations and code of discipline, etc.
More certainty, I have been told by many members of the ICPAS that they hoped that this Bill would seek to enshrine the mutual relationship between the SAC and ICPAS and in doing so, giving them more certainty that ICPAS will continue to play a leading and meaningful role in the accountancy sector here in Singapore. Some of this concern stems from the perception that in the future, ICPAS may have to compete for this function with other organisations or institutes that may be introduced here later.
Yes, the Bill stipulates ICPAS currently as a designated entity to fulfil this role and that should bring some relief to ICPAS and its members on their future. But under Schedule III, it is stated as only a designated entity and not the designated entity, which allows for more such entities to be introduced in the future. This creates uncertainty and anxiety among the members of ICPAS, who are also the bedrock of the very sector that this Bill is aimed at growing. I would like to seek confirmation that the intentions are to appoint only one designated
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entity, that is, ICPAS.
Madam, throughout the world, the major global accountancy bodies have ownership of the professional accounting qualifications and designations in their respective countries. Members can see this in the table that has been circulated for reference. This Bill will, however, give ownership of the new qualification programme SQP and the designation "Chartered Accountant" to SAC, instead of the national accounting body ICPAS.
This Bill should instead build on the good work that has been done by ICPAS over the years. This year, ICPAS will celebrate its 50th Anniversary and throughout this time, it has worked hard to build its own network and credibility among its global counterparts and for its members as well. If the SAC is going to own the SQP, what does that do to the international standing of ICPAS if the SAC is initiating Mutual Recognition Agreement (MRA) negotiations on its own with international counterparts? This will undermine the efforts of ICPAS to transform itself as a global professional body.
In fact, the MRA negotiations should be left to ICPAS as the professional membership body to handle – with approval from SAC of course – and not have the SAC getting involved in the process as this is not the right step and not keeping in practice with any accountancy professional body worldwide.
The functions of the SAC which are listed in clause 6 include a number of areas currently undertaken by ICPAS, such as to develop and administer programmes, qualifications, certifications, specialisation, and so on, all relating to the accountancy sector and related fields. It will also promote, develop and improve competencies, expertise and professional standards as well as conduct research and development activities in the accountancy sector and related fields.
These are some of the things already done by ICPAS and so there is a duplication and wastage of resources for the SAC to begin to do them.
Complementary approach. But I acknowledge that the SAC should still play an important role in the development of the accountancy sector here and therefore I would like to clarify that I am not dismissing its significance or relevance. But instead of micro-managing the qualification and its process, in which ICPAS has the total capability, the SAC should focus on the promotion and development of the accountancy sector, similar to that done by Government agencies like SPRING Singapore, EDB or IE Singapore that strive to promote growth clusters and industry development here. Traditionally,
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Singapore Government agencies play the role of a regulator or an enabler or facilitator of a particular industry or industry clusters. Therefore, the SAC should be a regulator for the SQP and an enabler to grow the accountancy sector.
The Pro-Tem SAC has already finalised the SQP by engaging a UK-based professional accountancy body and it is working out the administrative details of various processes leading to grandfathering of ICPAS members, admission criteria of students, examinations, practical experience requirements, other transitional arrangements and accreditation of training organisations (ATOs). Now that all of that are almost ready, the entire SQP should be passed on to ICPAS to own and manage as per the administrative services contract, as ICPAS already has the expertise, experience and capabilities of doing so. Further, my proposal will really avoid any potential conflict that may arise between SAC and ICPAS in designing a Model for Revenue and Cost sharing in handling the New SQP as the ownership and administration will then be in the hands of a single entity, that is, ICPAS. However, the SAC should have the oversight responsibility to see that ICPAS continues to adhere to the guidelines given by SAC.
If Singapore is to have a sizeable portion of the Asia-Pacific accountancy services market, the fastest growing globally, estimated to reach US$38.3 billion by the end of 2013, then I think the SAC should take a macro view and to focus on the bigger picture of growing the accountancy sector here as an enabler and delegating the entire SQP matters, that is, Singapore Quality Programme and designation matters to ICPAS while maintaining oversight responsibilities as a regulator.
The SAC can still maintain oversight of this process through multiple ways without directly intervening in the running of the SQP. For instance, the SAC can have representation on the ICPAS board, to have an oversight of the process, or the SAC can subject ICPAS to term reviews of the running of the SQP and address any concerns that may exist. That seems like a more efficient way of addressing any concerns there may be over the administration of the qualification programme in this sector.
Madam, the report of the Committee stated that as Singapore aspires to be a leading global accountancy hub for the Asia Pacific region —
Mr Dhinakaran, you have only one minute, Sir.
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Yes, thank you. It should seek to double the sector's existing GDP contribution from the current level of 0.4% to 1% over the next 10 years and as a member of the profession, I am confident that this is achievable. On the whole, I support the Bill, Mdm Speaker.
The hon Speaker of Parliament, Madam, at this juncture, I declare my interest as a Council Member of the Institute of Certified Public Accountants of Singapore (ICPAS) and that I am also a practising accountant.
Madam, I support this Bill which will establish the Singapore Accountancy Commission (SAC), in principle, to support the development and growth of and streamline the accountancy sector in Singapore.
Whilst I am in support of this proposed Bill, I would like to take this opportunity to seek some clarifications from the hon Minister, with regard to the transitional provisions that will be set in place, in the establishment of the SAC.
There is no doubt that the proposed Bill will have implications on not just the next generation of qualified professional accountants in Singapore, but also to existing ICPAS members. If I may but highlight a few:
One, the Bill proposes that a person can be registered as a "Chartered Accountant of Singapore" or "C.A. (Singapore)" if he/she has,
(a) completed a professional qualification programme that the SAC specifies;
(b) become an ICPAS member;
(c) satisfied all the requirements relating to the C.A. (Singapore) specified in the ICPAS rules; and
(d) any other requirements as may be prescribed by the SAC, that is, clause 26.
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Two, the Bill also proposes, in clause 42, that the Minister be given the power to deem the registration of a certified public accountant under the existing scheme and legislation, as the registration of a chartered accountant.
Madam, ICPAS is a national accountancy body with a membership base of 25,000. In view of safeguarding the interest of its members, ICPAS seeks to re-affirm the principles behind the transitional provisions.
Firstly, it would also like to confirm that existing members and prospective members, such as the current accounting graduates of local universities and the prospective graduates would not be worse off with respect to clause 42.
In particular, members and prospective members will wish to know if they will be automatically recognised as a chartered accountant, that is, Chartered Accountant (Singapore) having attained CPA Singapore designation, or whether they would need to satisfy any additional conditions or requirements.
Secondly, it would like to ascertain if there will be a window of opportunity for those who matriculate before June 2013, to assimilate into the process and what that window will be.
Thirdly, reasonable notice should be given for ICPAS Professional Examinations to cease enrolment and for existing ICPAS Professional Examinations candidates to complete their examinations and make the transition to the designation of "Chartered Accountant of Singapore".
Fourthly, that transitional provisions would be put in place for accountancy students who have graduated from the local universities in or before 2016.
Fifthly, that transitional provisions would be put in place for NSmen who have got a place in local universities in 2011 and 2012 but will enter the universities after their NS and therefore graduate later.
Finally, that transitional provisions would be put in place for those who left the profession but would now like to re-join.
Moving on, Madam, the proposed Bill is silent on whether, going forward, the Commission envisages that there would only be one recognised designation in Singapore, that is, Chartered Accountant (Singapore) or whether a number of designations will continue to be offered in parallel. An example of
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the latter are the existing designations and qualifications that are offered at present by ICPAS.
It is my humble view that having a single designation in Singapore will unify this small but very significant professional membership body. It will also streamline and allow all qualified professional accountants in Singapore to practise and to compete on the same platform.
Members within a professional body must remain cohesive and united.
With the phasing out of the current CPA Singapore and the introduction of the new Chartered Accountant of Singapore designation, it is important for transitional provisions to be transparent and fair at all times, and reasonable notice to be given to all concerned parties.
ICPAS members have made and continue to make big strides across various fields and industries in Singapore. They have contributed to Singapore's economic success. Many are well-established in their respective careers, be it as experienced finance and accounting professionals, partners in accounting services firms, CFOs or even CEOs. These efforts must be recognised and should be taken into account when determining the transitional provisions that will impact upon the professional body as a whole. With the above, I humbly seek the hon Minister's affirmation of my understanding and reading of this Bill. Madam, I support the Bill.
Mdm Speaker, I thank both Mr Dhinakaran and Mr Sitoh Yih Pin for their support of the Singapore Accountancy Commission (SAC) Bill and for expressing confidence in the Committee to Develop the Accountancy Sector (CDAS)'s vision. In particular, Mr Dhinakaran spoke passionately and it is not often in a Bill that a Member's speech is actually longer than the Minister's.
Before I respond to the specific concerns, I would like to reiterate two key points made earlier. First, to avoid duplication, the SAC will not be a membership body and, second, the SAC will act as an umbrella body pooling together the resources and coordinating the efforts of various stakeholders, including professional bodies like ICPAS.
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Madam, let me now respond specifically to Members' concerns.
Mr Dhinakaran voiced concerns over ICPAS' role after the SAC is established. As I have explained earlier, ICPAS will have a critical role to play as a Designated Entity. ICPAS will be responsible for registering and renewing the registration of Chartered Accountants and will be the professional body holding membership of the Chartered Accountants. ICPAS is entrusted this important role in recognition of its good efforts to transform itself and to serve its members better. These roles involve frequent and close interactions with the accountants which the SAC had made a conscious decision to involve ICPAS in.
As is the case, for accountancy professional bodies in other leading jurisdictions, ICPAS will also be responsible for the professional competence, standards and ethics of their chartered accountant members. This is a heavy responsibility as the success of the Singapore Qualification Programme (SQP) hinges on the international standing of our Chartered Accountants.
In these above roles, I see ICPAS having the opportunity to add much more value beyond administration. I certainly hope that ICPAS shares that perspective. I should add that I fully support the ambitions of ICPAS to play a more prominent global role and I am very encouraged by the steps taken by ICPAS recently to strengthen itself.
Mr Dhinakaran asked if ICPAS will be the only Designated Entity. We do not have plans to appoint another Designated Entity, although the Bill has been drafted to give the Government this flexibility. The fact that the Government has named ICPAS as the Designated Entity in the SAC Bill reflects our desire and commitment to work with ICPAS on this national initiative. The Government values ICPAS' views as an important stakeholder in the sector. MOF and the Pro-Tem SAC have involved ICPAS in many of the discussions. For example, ICPAS was represented on the CDAS and has been represented on the Pro-Tem SAC and its various key committees and work groups. And this has been the case since the Pro-Tem SAC was formed in 2010. ICPAS also actively participated in the working groups responsible for the design of the SQP, including the academic framework, curriculum and learning materials.
Mr Dhinakaran shared that professional bodies in other countries own the professional accounting qualifications and designations. This is indeed the case where the professional bodies had moved ahead of the government to build up their own professional accountancy qualifications. However, in the United States and Hong Kong, the conferment of their respective professional
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designations is governed by legislative instruments, similar to the proposed regime in Singapore. Although both approaches can work, the benefit of our Government-led effort is that it sends a very clear signal of commitment. This is also a point which Mr Dhinakaran acknowledged in his speech.
Madam, at this stage of the Singapore Qualification Programme development, it is probably less important who owns it and more important to ensure that the qualification earns the trust and confidence of the industry, both in and outside of Singapore. In this regard, the Singapore Qualification Programme is off to a good start. Already, more than 40 organisations have expressed interest to become Accredited Training Organisations (ATOs) to provide on-the-job training for their own employees as part of the SQP practical experience requirement.
The SAC, as developer and guardian of this SQP, is entrusted to protect and preserve the integrity and reputation of the Chartered Accountant designation. So, although we refer to the SAC as being the owner, I think, in substance, the SAC really thinks of itself more as a developer and guardian of the Singapore QP. This role does not duplicate and indeed complements those of ICPAS which I had reiterated earlier. For the Singapore QP to succeed, both the SAC and ICPAS have to execute their roles well, and I would urge both organisations to focus efforts on the arduous tasks ahead.
Mr Dhinakaran said that the SAC should not be initiating Mutual Recognition Agreements or MRA negotiations on its own with international counterparts. For the benefit of Members, let me explain why MRAs are important. An audit professional is able to sign off the audit opinion in a jurisdiction outside of Singapore only if he or she is registered as a public accountant in that country. In most countries, one of the criteria for registration is that the individual must be a member of the local professional body, which can be achieved if an MRA exists. Although MRAs are normally entered into between professional accountancy bodies, MRAs in the United States are negotiated by the International Qualifications Appraisal Board (IQAB) which represents the National Association of State Boards of Accountancy (NASBA) comprising the 55 state boards of accountancy and the AICPA, the professional accountancy body in the United States. This recognises the important roles played by both the statutory and professional bodies.
The Singapore approach, where the SAC and ICPAS will jointly negotiate MRAs, is thus similar to that of the United States, because we envision both the SAC and the ICPAS, both the statutory and professional bodies, to play
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important and complementary roles. I hope Mr Dhinakaran will contribute to strengthening the partnership between both organisations.
Madam, let me turn to Mr Sitoh's comments. He has suggested that there be only one Singapore-branded professional accountancy designation, given our small market and size of profession. I agree with him and confirm the intention to only have the Chartered Accountant of Singapore designation. This will allow us to build a strong and internationally recognised brand and enhance our ability to secure MRAs with other major leading accountancy hubs.
Mr Sitoh had asked about the principles behind the transitional provisions. As he has rightly pointed out, existing CPA Singapore holders have contributed much to our economic success.
The Pro-Tem SAC has therefore, formed a dedicated Singapore QP Transitional Panel to recommend appropriate transitional arrangements. The panel is chaired by Mr Yeoh Oon Jin, who is the Executive Chairman of PricewaterhouseCoopers, one of the Big Four accountancy firms. Besides being a respected industry leader, Mr Yeoh is also an ICPAS council member and will certainly have insights into the concerns of existing CPAs. So, the very useful inputs that Mr Sitoh had highlighted pertaining to students and those who are already enrolled in CPA courses are very relevant and will have to be addressed by Mr Yeoh's committee.
While the transitional arrangements are still being deliberated, I should share that the preliminary thinking is that existing CPA holders will not have to go through the Singapore QP to be registered as Chartered Accountants of Singapore. This means that their practice in Singapore will be unaffected. However, when it comes to mutual recognition by other jurisdictions, a Singapore QP qualification may well be needed. Existing CPAs may then find it advantageous to achieve the Singapore QP qualification. It is for each of them to decide how valuable the network of MRAs is and whether to invest time and effort to attain the QP qualification. Together with ICPAS, SAC will make every effort to facilitate CPAs in their decision making and to acquire the Singapore QP qualifications if they so desire.
Madam, once again, I thank Members for their thoughtful comments and support of the Bill.
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*Question put, and agreed to.*
*Bill accordingly read a Second time and committed to a Committee of the whole House.*
*The House immediately resolved itself into a Committee on the Bill. – [Mrs Josephine Teo].*
*Bill considered in Committee.*
[Mdm Speaker in the Chair]
The citation year "2012" will be changed to "2013", as indicated in the Order Paper Supplement.
Clauses 1 to 44 inclusive ordered to stand part of the Bill.
The First to Third Schedules inclusive ordered to stand part of the Bill.
Bill reported without amendment; read a Third time and passed.
PAPERCUTS