Co-operatives as responsible agents for social good

Mr Tan Kian Chew

Chairman, Central Co-operative Fund Committee

Mr Kwek Kok Kwong

Chairman, SNCF Executive Council

Dr Ang Hak Seng

Executive Director, Registry of Co-operative Societies

Co-operative Leaders

Esteemed Guests

Introduction

1. It is my pleasure to join you this evening at the Singapore National Co-operative Federation’s New Year Reception. The New Year is an opportune time for us to reflect on how far we have come; and what we hope to achieve going forward.

Co-operatives as agents for social good

2. We are in the midst of rapidly changing times. With the Brexit and U.S. presidential elections as recent examples, we are witnessing an increasing polarisation in societies. In Singapore, while we pride ourselves as a diverse yet harmonious society, we should not take what we have for granted. Each of us has a part to play in maintaining a united and resilient society.

3. Co-operatives too are integral to that. In fact, building a caring and cohesive society is intrinsic to co-ops. Co-ops exemplify principles of self-help and mutual help and are formed when individuals come together to address the social and economic needs of their community.

4. With a long history of over 90 years, co-ops now have an imprint in various sectors of the economy, and the sectors in society; and they cater to people from all walks of life.

5. Co-ops compliment the public and private sectors by offering a holistic approach in meeting the changing needs of the people. Take our ageing population for example, which see an increasing need to provide quality support for seniors. A number of co-ops has responded to the need, amongst them is Silver Horizon Travel Co-op which encourages active living and the building of friendships through customised travel programs. NTUC Health Co-op provides affordable health and eldercare services. I am also happy that the caregivers of our elderly have not been forgotten. The Silver Caregivers Co-op recognises the challenges they face and provides training to equip caregivers with the skills they require as well as caters to their personal well-being.

6. Co-ops also help build an inclusive society. The Runninghour Co-op for example, uses mainstream sports to nurture an inclusive community for people with special needs. Last year, I participated in the Runninghour race where I ran alongside visually challenged runner Ms Patricia Poo, together with the many volunteers who guided the visually challenged. By setting up a co-op, Runninghour is able to expand its capability and network to help even more with all abilities to benefit from sport.

7. It is clear that co-ops, when led by passionate people with business acumen and integrity, can be great agents for social good.

Promoting co-ops and building capabilities in the sector

8. It is hence important that we continue to promote and develop co-ops to enhance their impact on their members and the community at large.

9. As the industry body, SNCF is at the forefront of promoting the co-op movement and building awareness. I am happy to see that SNCF is also actively reaching out to the youth to continue the co-operative legacy. Through SNCF’s learning journeys for example, students are exposed to successful co-ops and learn more about the movement. These experiences nurture business skills and co-operative values that not only build characters but supports nation-building.

10. Co-ops will also have to be managed well to be effective, to be accountable to their members, and to make significant contributions to the community. In this regard, MCCY will continue to work with SNCF and the Central Co-operative Fund Committee. Together, we will implement different initiatives to help co-ops build up organisational capacity and capabilities.

11. Currently, there are several grant schemes that co-ops can tap onto. These range from grants for IT hardware or software applications, to staff training as well as consultancy services. In 2016, the Capability Training Grant was increased both in terms of funding quantum and cap per participant. A new Study Award was also introduced to support co-op staff in furthering their education.

12. We have also recently rolled out several initiatives to strengthen governance and build capabilities of credit co-ops. The updated Code of Governance for credit co-ops was issued in October 2016, and a related training programme was launched last month. I am happy to note the good attendance at the first training session. 19 out of the 24 credit co-ops were represented and most of the Chairmen were in attendance. This signals their commitment to good governance and it is important to set the right tone from the top.

Upcoming act amendments to improve co-ops operations

13. In tandem with these initiatives, we are working on legislative changes this year. It is timely to do so as the Co-operative Societies Act was last amended in 2008.

14. The upcoming amendments will improve the governance of co-ops. In particular, these amendments will build on the progress that credit co-ops have made over the last 9 years to strengthen their prudential and governance standards. This will help build stronger co-ops and improve their sustainability.

15. My colleagues have already started engaging the credit co-ops. Most of you would agree that these changes are necessary to protect members’ deposits and maintain public confidence. We will continue to gather feedback and listen to your concerns. Rest assured that we will support you through these changes. We will ensure that there are adequate transitional arrangements and that you will be supported with training and resources.

Conclusion

16. I am confident that together, we can build a vibrant co-operative movement which will continue to contribute to the greater good in Singapore. I hope you will enjoy yourselves this evening and continue to strengthen your relationships with one another. Thank you.