Singapore Airlines CEO indicates possible job cuts ahead: Bloomberg

07 Jun 2017 05:37PM (Updated: 07 Jun 2017 06:00PM)

A photo taken on November 25, 2010 shows a Singapore Airlines Airbus A380. (Photo: AFP)

SINGAPORE: Singapore Airlines (SIA) may cut jobs as part of a business review after swinging to a surprise S$138 million net loss in its fourth quarter, a report cited CEO Goh Choon Phong as saying on Tuesday (Jun 6).

According to Bloomberg, Mr Goh said that the national carrier's staff are aware a reduction of headcount is possible under the review process.

Speaking at the annual meeting of the International Air Transport Association in Cancun, Mexico, Mr Goh added that some jobs in the group may become “irrelevant”, while some workers may need new skills for different tasks. However, he said it was too early to provide numbers.

Announcing its quarterly loss last month, the company had said that a wide-ranging review was under way. The review was aimed at "identifying new revenue-generation opportunities and reshaping the business into one that continues to deliver high-quality products and services, though with a significantly improved cost base and higher levels of efficiency", it had said.

The review process that covers the carrier’s fleet and network started more than six months ago, and SIA has hired external advisers for help, the Bloomberg report quoted Mr Goh as saying.

The SIA group, including its affiliates and units, employed an average of 24,350 workers at the end of March 2016, Bloomberg reported.

Source: CNA/mz

Read more at http://www.channelnewsasia.com/news/singapore/singapore-airlines-ceo-indicates-possible-job-cuts-ahead-8925224

Singapore Airlines swings to S$138m net loss in Q4

18 May 2017 06:37PM (Updated: 20 May 2017 12:08AM)

Singapore Airlines (SIA) on Thursday (May 18) reported a net loss of S$138 million in its fourth quarter from January to March, reversing from a S$225 million net profit in the same period last year.

SINGAPORE: Singapore Airlines (SIA) on Thursday (May 18) reported a net loss of S$138 million in its fourth quarter from January to March, reversing from a S$225 million net profit in the same period last year.

Fuel costs before hedging increased $331 million in the quarter, due to a 50.7 per cent surge in average fuel prices and a stronger US dollar against the Singapore dollar.

The company also said that passenger flown revenue fell $17 million despite a 5.5 per cent traffic growth.

"Intense competition continues to exert pressure on yields amidst persistent cost pressures," SIA said in a news release.

It also said that it made a provision for its cargo unit for "competition-related matters".

The national carrier said its operating profit for the 2016-2017 financial year was S$623 million, S$58 million lower than the same period last year.

Its full-year net profit fell by 55.2 per cent, attributable "in part" to the net loss recorded in the fourth quarter.

The S$138 million net loss is in stark contrast to the S$225 million net profit the group reported in the fourth quarter of the previous financial year.

For the full year, operating profit in its main SIA brand fell 20 per cent to S$386 million from the previous financial year.

However, profit increased 11 per cent in its SilkAir regional airline and also jumped by 59.52 per cent for its budget aviation holdings including low-cost subsidiaries, Tiger Airways and Scoot.

SIA Cargo posted an operating profit of S$3 million, up from a S$50 million loss the previous financial year.

Looking ahead, SIA said: "Intense competition arising from excess capacity in major markets, alongside geopolitical and economic uncertainty, continue to exert pressure on yields."

On a more upbeat note, it said that the many strategic initiatives implemented to address structural changes "are now showing positive results".

"Building on this foundation, the next phase of the SIA Group's transformation has been launched" with a wide-ranging review under way, the company said.

"The review is aimed at identifying new revenue-generation opportunities and reshaping the business into one that continues to deliver high-quality products and services, though with a significantly improved cost base and higher levels of efficiency."

Source: CNA/mz

Read more at http://www.channelnewsasia.com/news/singapore/singapore-airlines-swings-to-s-138m-net-loss-in-q4-8861432

Financial penalties imposed on Credit Suisse and UOB for 1MDB-related transactions: MAS

The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore. (Photo: REUTERS/Edgar Su/Files)

30 May 2017 09:01AM (Updated: 30 May 2017 09:30AM)

SINGAPORE: The Monetary Authority of Singapore (MAS) has imposed financial penalties on Credit Suisse and United Overseas Bank (UOB), and issued Prohibition Orders (POs) against three individuals and served notice of its intention to impose the same regulatory action on three others.

Its latest regulatory action comes as MAS announced in a media release on Tuesday (May 30) the completion of its two-year review of the banks involved in 1MDB-related transactions known to-date.

REGULATORY ACTIONS AGAINST CREDIT SUISSE AND UOB

The latest inspections of Credit Suisse and UOB revealed several breaches of anti-money laundering (AML) requirements and control lapses, MAS said.

They included weaknesses in conducting due diligence on customers and inadequate scrutiny of customers’ transactions and activities. MAS said it did not detect pervasive control weaknesses within these banks.

MAS imposed on Credit Suisse and UOB financial penalties amounting to S$700,000 and S$900,000, respectively, for breaches of MAS Notice 626 - Prevention of Money Laundering and Countering the Financing of Terrorism.

It has directed the banks to appoint independent parties to assess and confirm to MAS that rectification measures have been effectively implemented. MAS has also instructed the management of Credit Suisse and UOB to take disciplinary measures, where appropriate, against errant staff.

The banks are currently taking measures to address the weaknesses identified and strengthen their AML controls, the media release added.

BANKS PLEDGE TO IMPROVE POLICIES, DONATE PROFITS TO CHARITY 

Both banks released press statements in response to the announcement on Tuesday morning, noting that MAS findings had found no pervasive anti-money laundering control weaknesses and accepting the central bank's findings.

Credit Suisse said it "takes a very serious view of our obligations in the prevention of money laundering and is firmly committed to upholding the high standards of the Singapore financial centre".

"We acknowledge the outcome of the review and regret that we have fallen short of the MAS’ and our own high standards. In recognition of the foregoing, Credit Suisse will donate all profits from the transactions in question to a worthy cause in support of our local community.

"Over the last few years, Credit Suisse has been investing in people and systems to strengthen its anti-money laundering processes and controls. The bank has co-operated fully with the MAS and taken further measures to address the issues identified in its review.”

In a separate statement, UOB said it "takes the importance of rigour in customer due diligence seriously".

The bank said it had instituted measures to address the areas of concern, including enhancing its training programme to raise risk and control awareness among its staff. Like Credit Suisse, UOB also said the profits associated with the lapses will be donated to charity.

"UOB will continue to build upon our anti-money laundering policies, processes and practices to strengthen the Bank’s ability to combat the threats posed by those seeking to abuse the banking system.

"We also expect our staff to uphold the highest ethical and professional standards in line with our code of conduct and will not condone behaviour that falls short of this."

PROHIBITION ORDERS AGAINST CONVICTED BANK EMPLOYEES

Further to its announcement on Mar 13, 2017, MAS also announced on Tuesday that it has issued lifetime POs against Mr Jens Fred Sturzenegger and Mr Yak Yew Chee, as well as a 15-year PO against Ms Seah Mei Ying with effect from May 29, 2017.

Mr Sturzenegger was the branch manager of Falcon Private Bank Ltd, Singapore branch (Falcon Bank), while Mr Yak and Ms Seah were employees of BSI Bank Limited (BSI Bank).

Mr Sturzenegger has been convicted of financial crimes including providing false information to authorities in an attempt to cover up his knowledge of Falcon Bank’s relationship with Mr Low Taek Jho.

Mr Yak and Ms Seah were convicted of multiple counts of failing to report suspicious transactions and of forging reference letters at BSI Bank on behalf of Mr Low.

All three individuals are prohibited from (i) providing any capital markets and financial advisory services; and (ii) taking part in the management of, acting as a director of, or becoming a substantial shareholder of any capital markets services or financial advisory firm in Singapore.

PROHIBITION ORDERS AGAINST KELVIN ANG AND OFFICERS OF NRA CAPITAL PTE LTD

MAS has served notice of its intention to issue a PO against Mr Ang Keng Wee Kelvin, a former representative of Maybank Kim Eng Securities (MKES). MAS also served notice of its intention to issue POs against the Chief Executive Officer of NRA Capital (NRA), Mr Kevin Scully, and its former Head of Research, Mr Lee Chee Waiy.

Through Mr Ang’s introduction, NRA was appointed to perform the valuation of PetroSaudi Oil Services Limited (PSOSL). On 24 May 2017, Mr Ang was convicted of an offence under the Prevention of Corruption Act for bribing Mr Lee with S$3,000 to expedite the preparation of the valuation report on PSOSL.

MAS said Mr Lee had been the primary person in NRA working on the valuation. Apart from accepting the bribe, he was also found to have applied inappropriate methodology and assumptions in the valuation of PSOSL. As CEO of NRA, Mr Scully had failed to ensure that his analyst, Mr Lee, had exercised sufficient care, judgment and objectivity in the valuation of PSOSL, MAS added.

Commenting on the review, Ravi Menon, Managing Director of MAS said: “The two-year long 1MDB-related review holds key lessons for both MAS and financial institutions in Singapore. MAS has enhanced its AML surveillance and taken unprecedented enforcement actions against errant institutions and individuals.

"Financial institutions have increased their risk awareness and strengthened their AML controls. Our financial industry is in a better position today than it was when the abuses stemming from the 1MDB-related flows took place. The price for keeping our financial centre clean as it grows in size and inter-connectedness is unstinting vigilance,” he added.

Source: CNA/mn

Read more at http://www.channelnewsasia.com/news/singapore/financial-penalties-imposed-on-credit-suisse-and-uob-for-1mdb-8894194

New measures to cool HDB resale market

With immediate effect, the Housing and Development Board has shortened its maximum loan tenure to 25 years and the mortgage servicing ratio limit has also been cut to 30 per cent of the borrower's gross monthly salary.

SINGAPORE - With immediate effect, the Housing and Development Board (HDB) has shortened its maximum loan tenure to 25 years and the mortgage servicing ratio (MSR) limit has also been cut to 30 per cent of the borrower's gross monthly salary.

Previously, the maximum HDB loan tenure was at 30 years and the MSR limit was at 35 per cent of the borrower's gross monthly salary.

From August 28, financial institutions will in tandem reduce the maximum tenure of new housing loans and re-financing facilities from 35 years to 30 years.

With immediate effect as well, Permanent Residents (PR) who want to buy resale flats will have to wait three years after receiving their PR status. Prior to this change, they could buy a flat as soon as they received PR status.

Announcing these changes on Tuesday, the HDB also provided more details of the extension of the Special CPF Housing Grant (SHG) and the new Step-Up CPF Housing Grant, which Prime Minister Lee Hsien Loong first announced during the National Day Rally.

The income ceiling for SHG will be raised significantly, from S$2,250 a month to S$6,500 a month for families and S$3,250 for singles. Mr Lee previously announced that the SHG would be extended to middle-income households and could be used for buying new four-room flats.

Under the new Step-Up Housing Grant, families who want to upgrade from a two-room to a three-room flat can get a housing grant of S$15,000.

The changes to the housing grants will apply from the July 2013 Built-To-Order (BTO) exercise.

From next month, parents who want to live near their children will also be offered more alternatives.

Parents will be allowed to apply for three-room flats, under the multi-generation priority scheme (MGPS). Currently, the scheme allows parents to jointly apply, with their married child, for either a studio apartment or two-room flat, together with another flat in the same project. This will come into effect in next month's BTO exercise.

To further cater to multi-generation families who wish to live under the same roof, the HDB will pilot a new type of flat.

The new Three-Generation flats - 80 of which will be available for sale in Yishun in the BTO exercise next month - will have four bedrooms and three bathrooms, with an internal floor area of about 115 square metres. Subletting of rooms in these new flats will not be allowed for the Minimum Occupation Period to ensure it serves its purpose.

The Phantom of the Opera returns to Singapore for second run

After six years, the longest-running musical on Broadway is back in Singapore. Andrew Lloyd Webber's The Phantom of the Opera opens at Marina Bay Sands this month and has extended its show until September due to ticket sales exceeding expectations.

21 Jul 2013

Singapore gripped by Hello Kitty frenzy

Tempers flared and police had to be called in Thursday as anxious Singaporeans rushed to McDonald's outlets to buy Hello Kitty plush toys being sold by the fast food chain as a promotion.

 

SINGAPORE: Tempers flared and police had to be called in Thursday as anxious Singaporeans rushed to McDonald's outlets to buy Hello Kitty plush toys being sold by the fast food chain as a promotion.

Hundreds had begun queueing from Wednesday night to get their hands on a kitten in a skeleton outfit, depicting a character from the German fairy tale "The Singing Bone".

It was the last of a series of six limited-edition Hello Kitty characters dressed in different outfits from popular fairy tales which were being sold by McDonald's this month.

In some outlets, chaos broke out amid rampant queue jumping as supplies of the toys ran out soon after the stores opened for business on Thursday.

One video uploaded on YouTube showed police officers mediating between two customers in front of a McDonald's counter.

Another showed an irate man asking an agitated crowd "Is he Singaporean? Is he educated?", apparently in reference to someone who had gotten a queue ticket ahead of others.

Some customers took to Facebook to register their anger after they went home empty-handed, while others immediately put the toys -- sold for S$4.60 ($3.62) with set meals -- up for sale online at far higher prices.

There were shocking auctions online, with bids as high as S$120,000. Channel NewsAsia was unable to verify independently if it was a genuine sale.

A viewer told Channel NewsAsia the plush toy is available at about S$7 from Chinese auction site Taobao.
Some Singaporeans are obsessed with completing the entire collection.

"This is absolutely ruining the Singapore reputation. Poor management and irresponsible," wrote Catherine Ong on McDonald's Singapore's Facebook page.

Others voiced their annoyance at compatriots who had let their Hello Kitty mania run out of control.
Singapore last went into a Hello Kitty frenzy in 2000, when McDonald's sold a series of the toys in wedding outfits to usher in the new millennium.

Hello Kitty, which started in 1974 in Japan as a moon-faced cartoon cat on a coin purse, has developed into a global cultural phenomenon.

Sanrio, the Tokyo-based company behind the Hello Kitty industry, says it now has around 50,000 different products on sale in 109 nations and territories.

Hello Kitty mania is also well-established in Hong Kong, where both men and women line up for hours outside McDonald's outlets during promotional schemes.

In 2008, Japan appointed the character as its goodwill tourism ambassador to China and Hong Kong.

- AFP/CNA/xq

 

Five months' jail for sex-for-grades former law prof

Former National University of Singapore law professor Tey Tsun Hang has been sentenced to a jail term of five months and ordered to pay a penalty of S$514.80.

 

SINGAPORE: Former National University of Singapore law professor Tey Tsun Hang has been sentenced to a jail term of five months and ordered to pay a penalty of S$514.80.

 

The 42-year-old was convicted last Tuesday of six counts of corruptly obtaining gifts and sex from former student Darinne Ko in 2010.

The S$514.80 penalty includes the balance of a dinner bill and the cost of two tailored shirts. The judge took into account that Tey had returned S$1,000 to Ms Ko for the dinner and noted that the iPod and Montblanc pen were forfeited by the authorities.

When giving his grounds for decision, Chief District Judge Tan Siong Thye said Tey had contributed to the university's law faculty and to the wider legal community and society.

The judge however said that there were several aggravating factors in the case.

He noted that Tey had acted with pre-meditation when initiating the illicit relationship with Ms Ko, who was only 21 years old at the time.

He said: "What I found particularly unbecoming of the accused, who was a senior educator (i.e. Professor of Law), was that he clearly and systematically took advantage of his student, PW1 (Darinne Ko)."

The judge said Tey not only used his position of power and charm to have sex with Ms Ko but also told her to "get rid of the baby" when he found out she was pregnant with his child.

The judge said this showed his "callousness", and Tey continued to exploit Ms Ko when she went to Duke University for an exchange programme in 2010.

Pointing out that Tey had abused his power and authority as an educator, the judge added that Tey betrayed the trust and confidence reposed in him by the university when he disclosed confidential information to Ms Ko.

Tey also brought the integrity of the university's examination assessment system into question and invariably tarnished the university's reputation, said the judge.

The judge also said that a key aggravating factor was Tey's "litany of lies" -- he said Tey had "lied repeatedly and behaved insidiously" from the time of investigations until the end of trial.

The judge said Tey had "spun a yarn", alleging the statements to authorities (CPIB) were not made by him.

He also noted that Tey wasted the court's time when he had claimed to be unwell, which medical experts found to be untrue.

The judge added that the sentence should befit Tey's crimes, and stressed that "public confidence in such institutions of higher learning must not be undermined by corruption".

He said: "Corruption must be stamped out swiftly and effectively. There must also be an element of sufficient deterrence in the sentence so that the message is clear that corruption is not tolerated in the tertiary institutions."

Tey frowned throughout the 90-minute hearing as he listened to the judge from the dock.

Tey has appealed against his conviction and sentence and is out on a S$150,000 bail. His bailors include his sister-in-law and a friend. 

- CNA/jc

Law prof Tey Tsun Hang found guilty in sex-for-grades case

The law professor implicated in the sex-for-grades case has been found guilty of corruption after a trial that spanned five months, from January to May. He will be sentenced on Wednesday.

SINGAPORE: The law professor implicated in the sex-for-grades case has been found guilty of corruption after a trial that spanned five months, from January to May.
He will be sentenced on Wednesday.

Tey Tsun Hang, 42, was convicted of all six counts of corruptly obtaining gratification in the form of gifts and sex from his former student Darinne Ko Wen Hui, in return for giving her better grades between May and July 2010.

Following the verdict, the National University of Singapore (NUS) said it has terminated Tey's employment with immediate effect. It said in a statement that Tey had contravened the conditions of his appointment.

The Dean of NUS Faculty of Law, Simon Chesterman, said that NUS staff and students are expected to behave ethically and responsibly.

The case centred on Tey's relationship with his former student. The defence had argued it was a mutually-loving relationship.

But in a 200-page judgement, Chief District Judge Tan Siong Thye listed reasons why it was one-sided and described it as "an illicit relationship laced with corrupt intent".

He said Tey never once mentioned in his statements (to authorities) that he was in love with Ms Ko, nor had he ever referred to her by her name.

Instead, the judge said Tey would use "female student" and even "star prosecution witness" when he referred to her in his cautioned statements.

The judge said Tey only told the court they were in a romantic relationship "as an afterthought".

He noted that in the second tranche of the trial, Tey changed his tune and claimed they were in love.

The judge pointed out that in his email correspondences to Ms Ko, Tey was always "terse" and "sometimes even curt".

Pointing to Tey's Chinese poem and an email on the background of Frederic Chopin to Ms Ko, the judge said: "When he (Tey) did write to Ms Ko, it was an anti-climatic copy-and-paste exercise."

During the three-hour long judgement, Tey was described as not having any "basic decency" as he made Ms Ko pay his expenses for a trip to the United States. At that time, Ms Ko was an exchange student at Duke University and Tey visited her, but only offered to pay his own airfare.

The judge said this happened when the law professor was earning S$225,000 as at February 2010, while Ms Ko was a mere student.

On Ms Ko's pregnancy, the judge said Tey had told her to abort their child when he found out about it.

The court heard that at that time, Ms Ko was in the US and Tey told her to have an abortion there and that he had no money for the operation. She had to pay US$2,000 herself.

And while Ms Ko may have showered him gifts out of love and affection, the judge agreed with the prosecution that the 23-year-old was also trying to get into Tey's good books.

The judge also impeached the key prosecution witness' credibility on the reasons for getting the gifts -- the Monblanc pen, tailored shirts, iPod, as well as the payment of a dinner bill.

He said there were serious discrepancies in these areas between her CPIB statements and testimony.

The judge said she negated the corrupt intent and told the court she gave the gifts without intent to seek special favours. This differed from her first statement to the CPIB.

The judge said he is of the view that Ms Ko's first and second statements to the authorities were reliable and her third was not.

"Sometime after her second statement on 28 April 2012, she realised that her first statement had incriminated herself and exposed her to possible charges under the Prevention of Corruption Act.

"She could be charged as a giver who corruptly gave gratifications to the accused. She then decided to retract the incriminating parts of her statement," said Judge Tan.

But the judge highlighted that it is irrelevant to determine whether Ms Ko had breached the Act, and that the court should instead focus on Tey's corrupt intent.

Previously, Tey had argued that there was no corrupt intent as Ms Ko was an "A" student who did not need him to give her good grades.

But the court found that Tey had great influence over Ms Ko and the status of the two were "clearly disproportionate".

The judge said favouring Ms Ko need not be extreme. It could just mean bumping her grades up slightly from a "B+" to "A-".

In court, two professors were asked of their view of Ms Ko's directed research paper. One said he would give her a "B+" while the other said he would give either an "A-" or an "A". Tey had awarded Ms Ko an "A".

The judge stressed that whether Tey had shown favour to Ms Ko or not was not vital. What was important was that he could influence her grades, and showed her he could, in order to obtain the gifts.

As for anonymous marking practised at NUS to deter corruption and favouritism, the judge said: "The integrity of the anonymous marking system no longer applied to Ms Ko as the accused would have recognised her handwriting, as she had sent him several handwritten love cards.

"When a professor and a student are in a relationship, like in this case, the virtues of anonymous marking no longer existed."

Another point of argument was Tey's claim that he reimbursed Ms Ko for the gifts and dinner bill with a S$2,500 cheque.

But the judge found this to be untrue -- first, because Ms Ko denied unequivocally ever receiving the reimbursement. Second, that if Tey had repaid her, she would have told the court and would have been exonerated of bribing her lecturer.

On Tey's part, the judge said this was the key to proving his innocence, but he did not inform the CPIB of the reimbursement for the gifts.

The judge made it plain that the defence of reimbursement was an "afterthought" as it was "impossible to estimate the cost of dinner at Garibaldi on 21 July, 2012, before it happened".

Judge Tan said: "The accused could simply have produced his bank statements to show his withdrawal of the money (the $2,500 reimbursement), but he chose not to do so.

"As he would have produced his bank statements if they supported his case, it stands to reason that his bank statements would, if produced, be unfavourable to him."

On Tey's mental condition, the judge rejected psychiatrist Dr Tommy Tan's diagnosis that Tey was suffering from acute stress disorder. The judge said it was "unreliable" and "not objective".

In a report dated 2 May, 2013, forensic psychiatrist Dr Bharat Saluja said Tey "does not suffer from any psychotic disorder or any organic brain disorder".

Judge Tan said: "By a process of elimination, since the accused was not suffering from severe brain damage, organic disorders, or chronic and severe psychiatric conditions like schizophrenia, it must stand to reason that the accused was malingering."

The judge said Tey was also "dishonest" not only in court, but also to Ms Ko, CPIB officers and medical experts. He said a "depraved" Tey "clearly took undue advantage" of Ms Ko.

The judge said secrecy and serendipitousness are common characteristics of someone with criminal intent and that "evidence against the accused was overwhelming".

The court also rejected Tey's allegations that his statements to the CPIB were made under duress.

The judge also took into account that Tey had admitted that he breached the university's code of conduct, but continued to hide this from the school.

He also said the university is a public body as it's an instrument to implement government policy. This meant that Tey was a public servant and the presumption of corruption applied to him.

Judge Tan said: "In this case, the presumption of corruption under Section 8 of the Prevention of Corruption Act operated against the accused. In other words, he was assumed to have received the gratifications in the six charges as an inducement for showing favour to Ms Ko in his assessment of her academic performance.

"Even without this presumption, there was sufficient evidence to show beyond a reasonable doubt his corrupt intention and guilty knowledge. For the above reasons, I came to the irresistible conclusion that the accused had the corrupt intention and guilty knowledge in all of the six charges against him."

In mitigation, Tey's lawyer Peter Low asked for a stiff fine. He said if the court had to give a custodial sentence, to make it a short one.

During the hearing, Tey was seen listening intently to the judge as he sat in the dock with his head bowed low.

Once the session was over, Tey was greeted by his supporters, most of whom are his colleagues. They were visibly upset with his conviction and teared when they hugged him.

Tey will be sentenced on Wednesday. He could be jailed up to five years and fined up to S$100,000 on each charge.

- CNA/xq/al