Singapore Institute of Management Annual Report 2014

Singapore Institute of ManagementAnnual Report 2014

CONTENTS

2014 marked 50 exciting years of fulfilling our mission: from helping to meet the aspirations of our people to nurturing lifelong learners and supporting Singapore’s economic development.

While keeping pace with rapid changes in the educational and economic landscapes, we have held fast to values that have served us well – an unwavering commitment to quality and standards, a collaborative approach to engage, a pioneering and innovative spirit to stay relevant and competitive, and most of all, a focus on doing well to do good.

Today the SIM name stands for multi-modal learning that is holistic, rigorous and relevant. As we move forward into a new era where teaching and learning must evolve to meet future needs, we stand poised to further our mission of upgrading Singapore’s sole and critical resource – its people.

4 ABOUT SIM

6 OUR BRANDS

8 OUR CAMPUSES

10 2014 KEY STATISTICS

12 MESSAGE FROM CHAIRMAN

16 MANAGEMENT REPORT

20 ORGANISATIONAL CHART

21 GOVERNANCE & ACADEMIC QUALITY

24 SIM GOVERNING COUNCIL

28 SIM UNIVERSITY BOARD OF TRUSTEES

32 SINGAPORE INSTITUTE OF MANAGEMENT PTE LTD BOARD OF DIRECTORS

34 CELEBRATING 50 YEARS OF FULFILLING ASPIRATIONS

38 A UNIQUE MISSION

52 A PASSION FOR LEARNING

58 A SOCIAL PARTNERSHIP

64 A LIVING CLASSROOM

70 STAFF DIRECTORY

72 CORPORATE INFORMATION

73 FINANCIAL REPORT

Furthering our mission

CONTENTS NEXTPREVIOUS

32 FURTHERING OUR MIS5I0N ANNUAL REPORT 2014

VISION

CORE VALUES COMMITMENT

QUALITY POLICYMISSION

The Singapore Institute of Management (SIM) is the largest and most comprehensive provider of higher education and professional training in Singapore. It was founded in 1964 as a not-for-profit membership organisation under the Economic Development Board and today, boasts close to 50,000 corporate and individual members. Its extensive range of membership programmes, activities and resources provide an important nexus for SIM students and members to network and learn. The SIM Group accomplishes its mission of education and lifelong learning through three distinct educational arms, each catering to a specific market segment of learners.

To be the centre of leadership and management excellence, and the embodiment of lifelong learning

Spearhead management thought leadership

Be the preferred strategic partner of corporations in maximising return on human capital

Be the choice provider of continuing education to individuals

Transform SIM into a regional brand

Trust and Respect for the Individual

Teamwork

Open and Timely Communication

Performance Excellence

Spirit of Innovative Adventure

To our Members We care for our members, recognise their importance, and strive to raise the prestige of their membership.

To our Customers We value our customers and commit ourselves to actively improve our services and products.

To our Employees We care for our people by creating a conducive work environment, helping them to balance family and work commitments, recognising their contributions, and developing them to their full potential.

To our Community We honour our social obligations and pledge to be a good corporate citizen by always acting professionally and ethically in all matters.

We are dedicated to continuously improve our services and to consistently exceed the expectations of our customers.



SIM University is Singapore’s only private university and its mission is to create excellence in lifelong education through a uniquely-designed learning experience that equips learners for a better future. Home to more than 14,000 students, SIM University adopts a flexible and practice-focused learning approach and offers more than 60 academic programmes in various disciplines. Eligible students taking SIM University’s undergraduate programmes enjoy government subsidies and access to government bursaries, tuition fee loans and study loans. SIM University is a not-for-profit university and the SIM University Education Fund has been a Singapore ‘Institution of a Public Character’ (IPC) since September 2005.

Students can choose from a wide range of high-quality overseas degree programmes made available through SIM’s partnership with established international universities and institutions from the United Kingdom, United States, Australia and Switzerland. Most of the students are full-time students, but SIM Global Education also offers part-time programmes that cater to working adults. Offering over 70 academic programmes, its enrolment stands at 21,500.

Over 11,000 professionals benefit annually from the vast selection of short executive training programmes offered by SIM Professional Development. Its customised in-company training programmes help companies optimise effectiveness in various fields of management and human resource development.

OUR BRANDS



OUR CAMPUSES

SIM HQ AT CLEMENTI SIM MANAGEMENT HOUSE

The SIM Headquarters (SIM HQ) along Clementi Road is SIM’s main and largest campus.

In 2014, the expansion of SIM HQ was completed with the final phase of the SIM Campus Development Master Plan, bringing the total campus size to 110,000 square metres. Facilities include 254 lecture theatres, seminar rooms and computer laboratories, as well as a sports hall, performing arts theatre, multi-purpose halls, a financial training centre and a management library. Also on campus is a student activity hub which provides a focal point for students’ social interaction and recreation, and a student care and wellness centre that organises programmes that promote healthy and optimal living.

Set in the tranquil residential estate of Namly Avenue, SIM Management House has 20 lecture theatres and seminar rooms, computer laboratories, a members’ lounge and business centre that cater to membership activities, executive development courses and post-graduate degree programmes.



1 Group comprises Singapore Institute of Management, Singapore Institute of Management Pte Ltd and SIM University. Institute refers to Singapore Institute of Management.

2 For the year ended on 31 December.

3 Computed based on the formula: bank balances / total annual expenditure including capital expenditure. SIM Group will target to maintain a reserve level of one year taking into consideration its future income streams and future operating and capital expenditure.

Group1 Institute1

20142 20132 20142 20132

$’000 $’000 $’000 $’000

Income 311,548 299,406 94,715 81,629

Expenditure 275,778 259,057 78,056 67,187

Excess of income over expenditure before tax

35,770 40,349 16,659 14,442

Capital Expenditure 89,364 95,399 84,149 86,141

Reserve Level3 0.7 year 0.9 year 0.1 year 0.5 year

growth in revenue to $312m4.1%

students enrolled35,500

alumni and graduates145,50025,000 SIM University alumni120,500 SIM Global Education graduates

SIM University14,000 students enrolledOver 60 programmes offered

SIM Global Education21,500 students enrolledOver 70 programmes offered

members49,423

professionals trained11,000Over 500 public and customised in-company programmes organised

48,848 individual members 575 corporate members

2014 KEY STATISTICS



MESSAGE FROM CHAIRMAN

arguably the largest private education institution in Singapore, one known for the quality of its programmes and rich learning environment. Another achievement was the successful launch of UniSIM’s first full-time programmes in Accountancy, Finance and Marketing to very strong response, a very encouraging reflection of the confidence in UniSIM’s standards and quality indeed. With the Ministry of Education’s approval to offer three other programmes in the coming years, UniSIM is set to steadily grow its suite of full-time programmes. Developments to start Singapore’s third law school focusing on family and criminal law at UniSIM are also well underway, with an official announcement to be expected in 2015.

SIM GE continued to enrich its programme offerings to respond to market needs. Efforts to export its strong brand name to the region have reaped its first fruits with the inaugural launch of programmes with Universitas Pelita Harapan in Surabaya, Indonesia. With this initial success, it has continued to identify other partnerships through which it can impact private education in other parts of the region. SIM GE’s students continued to do well in both academic and non-academic areas, evidence that our efforts to provide a holistic quality education are paying off.

Our initiative to move towards delivering more programmes through the e-mode has also made good progress with UniSIM taking a strong lead in the industry and SIM GE stepping up efforts to continue expanding its e-learning and other support to students.

NEW PLAYING FIELDAs Singapore moves forward into a new economic phase, there is a necessary shift in the focus of education and training at the national level. The global economic environment will continue to be uncertain; there is a new normal of slower growth among major economies, some of which are still struggling to get back on their feet after the last economic knockdown in 2009. As a small and resource-scarce nation that is highly dependent on the rest of the world, we must be prepared for the fallout that will inevitably hit us.

Key to our nation’s survival will be how effectively we can capitalise our only resource, limited in size as it is. The skills, creativity, adaptability and resilience of our people will determine our ability to create real value and sustain real growth for our economy. To achieve that, the Government has refocused education on skills rather than paper acquisition, and given a new and increased significance to Continuing Education and Training (CET). In its 2015 budget, it has given sails to this new direction with the

2014 was both a milestone and watershed year.

We celebrated our 50th anniversary, a significant milestone, considering how far we have come from a management institute to be the leading private education institution that we are today. As we reflect on 50 years of success, we are also cognizant of the fact that we now stand at the threshold of major changes in the education and training industry.

2014 KEY ACHIEVEMENTSSeveral significant achievements marked our anniversary and helped to further consolidate our leadership position in the private education industry.

One achievement was the completion of our $300 million Campus Development Programme which started in 2009 over two phases. With the conclusion of Phase 2 of the project in 2014, we have doubled our campus size and increased our capacity and capability to support a more holistic educational experience for our students as well as provide a more conducive environment for our faculty and staff to teach and work in. Taken with our combined enrolment of over 35,000 students from both SIM University (UniSIM) and SIM Global Education (SIM GE), we are



announcement of the SkillsFuture initiative with its many incentive schemes to encourage lifelong learning.

With this new emphasis on CET and a concomitant mindset shift to the development of deep, relevant skills, there are many opportunities to be tapped for all our three entities: SIM Professional Development, UniSIM and SIM GE. There will be need for new areas of education and training as new skills and knowledge are required. There will be a need to look at how learning is structured, packaged and delivered to make it relevant and effective for the executive who works and learns throughout his working life. Rapid developments in educational technology will have to be harnessed to greater advantage to make learning more accessible and engaging.

To ensure that we deliver learning outcomes that are immediately relevant and employable, we will step up our collaborative efforts to involve industry and employers in designing programmes and services that meet real needs.

Underpinning all these changes is a higher education market that is maturing and consolidating. Education cohort size is shrinking as a result of lower population growth over the

past decades. As pent-up demand has been largely met, high growth in student numbers is now a thing of the past. With a smaller pie on the demand side, competition for a share of the pie will also be keener with the Government increasing the supply of government-funded places through the Singapore Institute of Technology and UniSIM in addition to the other autonomous universities. The impact of this trend is borne out in our 2014 performance. Although enrolment at UniSIM has increased slightly by 6% to just over 14,000, SIM GE’s enrolment has dipped by about the same percentage points to 21,500. Correspondingly, our membership has remained more or less stagnant, standing at close to 50,000 Corporate and Individual members.

The result of slower growth is reflected in a subdued revenue growth of 4.1% to $312 million in the financial year 2014. On the other side of the balance, as we support a much expanded campus to provide a richer learning experience and continued to invest in improving the quality of our programmes and services, our costs have crept up by 6.4% over 2013 to $276 million, with a before tax surplus recording a dip of 11.3% to $36 million.

NEW GAME PLANThe future will be exciting and I am confident we are in a very strong position to seize it and ride on the crest of change.

We have five decades of experience and expertise in education and lifelong learning to leverage on. We have strong trust in our brand which is associated with high standards and quality. Our visionary and prudent pioneers had ensured that our resources have been ploughed back to invest in a better infrastructure for the future. We will unlock the value of our investments to build on our future strengths and capabilities. As an organisation that promotes lifelong learning, we must be a torchbearer when it comes to investing in our staff so that they remain competent, creative, productive and nimble. Above all, the pioneering and innovative spirit that underpins our success must be kept alive

and encouraged to help us think outside the box and experiment with doing new things and doing things differently. Only then can we improve further on our strengths and find new engines for growth.

I am grateful to all the SIM pioneers and leaders whose foresight and dedication have helped build SIM in the past 50 years. Going forward, I know we can count on the continued support and commitment of all our stakeholders - our Council and Board members, management, staff, faculty and associates, members, alumni and students – as we further our mission of helping individuals fulfil not just personal aspirations but also national aspirations for a prosperous and beautiful Singapore that we call home.

Tan Soo JinChairmanSIM Governing Council

The future will be exciting and I am confident we are in a very strong position to seize it and ride on the crest of change.



MANAGEMENT REPORT

overhead bridge with a bigger one as part of the widening of Clementi Road. With this, we will also add a sheltered link way between the bus stops, overhead bridge and our campus.

SIM50 CelebrationsA year-long programme of activities was organised to commemorate our 50th Anniversary. Among these was a Transformations Learning Series organised by SIM Professional Development. This was a series of talks to share success stories in business and management by interesting personalities such as Azran Osman-Rani, CEO of AirAsia X, and Pierluigi Collina, widely regarded as the world’s best soccer referee. As part of SIM50, our hallmark event – the 33rd SIM Annual Management Lecture – also featured a renowned speaker, Professor Clayton Christensen, one of the world’s most influential management thinkers.

To chronicle the growth of SIM in supporting Singapore’s manpower development, the SIM Heritage Gallery and Commemorative Book were also launched.

The anniversary celebrations culminated in the official opening of our Phase 2 Campus Development cum gala dinner graced by Minister for Trade and Industry, Mr Lim Hng Kiang. At the event, we paid tribute to our Founding Chairman Dr Richard Eu and the late Executive Director Professor You Poh Seng, both of whose vision and dedication had enabled SIM to grow by leaps and bounds in the last five decades.

In our continual support of our community, the SIM50 activities raised a total of $100,000 for

two adopted charities – the Singapore Children’s Society and Student Advisory Centre.

SIM UNIVERSITY

Continuing Education and TrainingFor UniSIM, maintaining our competitiveness in a fast-changing university landscape is both an accomplishment in 2014 and a challenge in the years ahead.

On the recommendations of the Applied Study in Polytechnics and ITE Review (ASPIRE) Committee and SkillsFuture Council, the Government will further strengthen Singapore’s applied education pathways with a focus on building deep skills through Continuing Education and Training (CET). UniSIM’s focus on ensuring industry relevance through its practice-oriented and applied programmes, as well as its initiatives in CET since 2008, is very much in line with the objectives of the SkillsFuture direction. We have had a good start and will continue to enlarge our CET offerings while ensuring quality and relevance in our programmes.

New partnerships to offer more CET have been forged, such as with the Singapore Exchange (SGX) to jointly develop financial and investment-related courses for finance professionals. This partnership also includes the organising of outreach activities to benefit UniSIM’s students and members of the public.

SIM turned 50 in 2014. While many activities were organised to celebrate this important milestone, it was also a busy year of consolidating our capabilities across all entities.

The completion of our campus expansion at Clementi underscores our unflinching commitment to continually enhance and enrich the learning experience of our learners. We not only reviewed our programmes and services and added new ones to meet changing market demands, we also continued to invest in harnessing technology to move towards a pedagogy and programme delivery that are relevant to a new generation of learners. Internally, investments were also made to improve our people, systems and processes to enhance productivity and customer service levels. All these efforts will ensure our future-readiness as we prepare ourselves to meet new needs in education and training.

SINGAPORE INSTITUTE OF MANAGEMENT

Completion of Campus ExpansionOur campus has doubled in size to 110,000 square metres to house a total of 74 lecture theatres, 136 seminar rooms, 35 specialised and computer laboratories, two libraries and six multi-purpose halls. There are also a performing arts theatre, sports hall, dance studio and tennis courts, as well as auxiliary facilities such as F&B outlets, student activity hub, study areas and child care centre. The expanded campus will greatly boost our ability to provide a full educational experience for our students as well as support new programmes and services.

With the expanded campus, the old bus stop on Clementi Road was also replaced by a new and larger one, solving the congestion problem faced by students and staff, and giving our campus an iconic frontage.

In the next phase of improvement, the Land Transport Authority will be replacing the current

Mr Ronald Tan Hee HuanExecutive Director, Singapore Institute of Management

Professor Cheong Hee KiatPresident, SIM University

Dr Lee Kwok CheongChief Executive Officer,SIM Global Education



Launch of Full-time ProgrammesThe UniSIM College, responsible for hosting the full-time degree programmes, successfully launched its first three programmes in Accountancy, Finance and Marketing. Our offering of 200 places in these programmes was more than seven times over-subscribed with 1,518 applications. A final of 217 students were admitted. Following this, UniSIM is set to launch another three programmes in Human Resource Management, Social Work and Supply Chain Management over the next two years, all of which are offered to meet industry needs.

To help our full-time students get real work experience through work attachments, a total of 26 partnerships were established with both well-known international brands like Stanley Black & Decker and RHB Securities as well as home-grown names like Nexia TS and RSM Chio Lim. We will work with these partners to offer our students a structured work attachment programme that requires them to contribute like regular employees. As students gain practical experience that links classroom learning and work realities, they will be better prepared for working in the real world.

To reinforce UniSIM College’s ethos of training the ‘Heart’ in addition to the ‘Head’ and ‘Habit’, students are required to undertake a Service Learning project as part of their study. We partnered the National Youth Council to help students identify projects where they can serve the elderly, children and youth at risk as well as in areas such as the environment, sports, heritage and culture. Through these, students learn civic

consciousness and pick up soft skills in leadership, teamwork and communication.

New Part-time ProgrammesUniSIM launched three new part-time programmes, viz. in art, music and sports & physical education, all of which are important as Singapore develops further as a first world country. An exciting part-time programme to look forward to in the near future will be the law degree with specialisation in family and criminal law, two areas of law that are much needed by society but face a shortage of lawyers. The establishment of the UniSIM Law School is targeted for 2015, with an initial intake of 75 students within the next one to two years.

In the area of e-learning, we now have 27% of our courses in e-mode and are on track to achieving our 50% target by the end of 2015. To provide further technical support for online learning and spearhead the development of new technologies to enhance students’ learning, a new Learning Systems and Applications unit was set up in 2014.

SIM GLOBAL EDUCATION

Students’ AchievementsSIM GE’s investments in a full and holistic education for students continued to yield positive results. Once again, our students did well in both academic and non-academic pursuits. A total of 167 University of London (UOL) students were awarded first class honours, the highest number

of achievers in the world for UOL International Programmes. Students in other programmes such as the University of Birmingham, University at Buffalo (UB) and RMIT University also scored an impressive number of top honours.

In sports, our women dragon boaters raised the Prime Minister’s Challenge Trophy for the first time at the annual Singapore Dragonboat Festival while their male counterparts successfully defended their 2013 champion title. In arts, our student groups were very active in putting up a string of performances on and off campus. SIM Dreamwerkz, a hip-hop dance group, staged the first production at the newly opened Performing Arts Theatre. The performance played to an audience of 1,300 patrons over three sessions.

SIM GE’s Education Abroad Programme which started in 2009 to give students a global experience was attended by more than 300 students, joining close to 2,000 participants who have benefited from the Programme. During the year, students did their overseas study and exchange programmes at renowned universities such as King’s College London, London School of Economics, Imperial College and the University of California, Berkeley, as well as at other institutions in New York, San Francisco, Taiwan and Spain.

We also expanded our student support services with the setting up of a Student Wellness Centre in the expanded campus. The centre proactively promotes optimal living and physical, mental and social well-being for students through peer

mentoring, counselling, self-help resources and other organised activities.

Quality of EducationThe rigour of our programmes, quality of campus experience and student care is key to the overall quality of education we provide. This quality is confirmed in the latest i–graduate Student Barometer, a widely-used and globally-recognised gauge for evaluating the quality of the overall student university experience. SIM GE is ranked on par with other major global universities in the areas of our lecturers’ subject expertise, teaching abilities and English proficiency. We also did well in programme content and organisation, assessment, campus environment and the provision of student support services and career advice from academic staff.

New ProgrammesSIM GE’s success is due in no small part to the strong partnerships we have with our overseas partners. In 2014, we celebrated the 20th and 10th anniversaries of our partnerships with the University of Sydney and UB respectively.

As part of our review to respond to market needs, we also introduced several new courses. These included international relations and business information systems with existing partners, UOL and the University of Wollongong.



GOVERNANCE & ACADEMIC QUALITY

CORPORATE GOVERNANCEAs a not-for-profit organisation under the purview of the Charities Act, SIM enforces stringent corporate governance guidelines to ensure that we are transparent and are compliant with legal regulatory requirements.

Assuming the overall governance of the SIM Group is the Governing Council. Comprising independent elected members, the Council is responsible for the strategic direction of the Group, acts as a watchdog on all financial, remuneration and audit matters and closely monitors compliance with control measures. Similarly, the SIM University (UniSIM) and Singapore Institute of Management Pte Ltd are also governed by a Board of Trustees and Directors respectively, members of whom are appointed independent directors.

The Internal Audit Division, as part of the SIM Group’s corporate governance framework, oversees the SIM Group’s auditing functions in risk assessment, whistle-blowing, and internal and external audits.

As part of good corporate governance, SIM has in place the Conflict of Interest Policy and the Whistle-Blowing Policy. Under the Conflict of Interest Policy, Council members or staff who have personal interests in business transactions or contracts that SIM may enter into or have

vested interest in any organisation that SIM has dealings with, are required to declare such conflict of interest to the Council or senior management immediately, and to abstain from any discussion or decision making on the matter of interest.

The Whistle-Blowing Policy extends the notion of corporate governance to all staff and vendors, allowing them to take responsibility in playing their part to help SIM achieve a greater level of public confidence in our corporate governance.

ACADEMIC QUALITY ASSURANCE Underpinning our quality promise is a rigorous academic quality assurance framework which subjects our programmes, services and facilities to stringent internal and external audits regularly to ensure that they meet exacting standards in quality, rigour and relevance. At the strategic level, review of our academic quality, relevance and alignment with our mission is guided by an International Academic Panel which comprises eminent academic and industry professionals from international universities and institutions.

The programmes at UniSIM and SIM Global Education are supervised by respective Academic Boards which oversee programme curriculum, pedagogy, partnerships and presentation, examinations and assessments, as well as student admission.

ORGANISATIONAL CHART

Audit CommitteeSIM Governing

Council

Singapore Instituteof Management

Board of Trustees Board of Directors

SIM University Singapore Institute of Management Pte Ltd

SIM Global Education SIM Membership Group Corporate Services Internal Audit

SIM Professional Development

Finance Committee

Investment Committee

Remuneration Committee

Membership Committee

Nominating Committee

Campus Development Steering Committee



SIM INTERNATIONAL ACADEMIC PANEL*

CHAIRMAN

Professor Cham Tao SoonSpecial Advisor to SIM Governing CouncilPresident EmeritusNanyang Technological University

MEMBERS

Mr Chak Kong Soon PresidentSingapore Computer Society

Professor David DickinsonDirectorInternational Partnerships for College of Social Science ProfessorDepartment of EconomicsSchool of Business University of Birmingham

Professor Joe F ChicharoDeputy Vice-Chancellor (International) University of Wollongong

Mr Jen Kwong HwaBusiness Advisor Get2Volume Accelerator

Professor Pang Eng FongProfessor of Strategic Management (Practice) Lee Kong Chian School of BusinessSingapore Management University

Dr Frits PannekoekPresident EmeritusAthabasca University

Dr Janet StockdaleDean, University of London International Programmes and Senior Lecturer in Social Psychology (Alumni and Careers) The London School of Economics and Political Science

Professor John M ThomasProfessor of Operations Management & Strategy and Dean EmeritusSchool of Management The State University of New York at Buffalo

Professor Bernard Yeung Stephen Riady Distinguished Professor and Dean, NUS Business SchoolNational University of Singapore

ACADEMIC QUALITY ASSURANCE FRAMEWORK

1 The Enhanced Registration Framework is a registration process for private education institutions (PEIs) mandated by the Council for Private Education (CPE) under the purview of the Ministry of Education. Established in December 2009, the CPE is empowered under the Private Education Act with legislative power to regulate the private education sector.

2 The Quality Assurance Framework for Universities (QAFU) is Ministry of Education’s regulatory framework for all government-recognised universities, including the Autonomous Universities and SIM University.

3 The EduTrust Certification Scheme is a voluntary quality assurance scheme implemented by the CPE to encourage PEIs, especially those who recruit foreign students, to differentiate themselves through even higher standards.

* Information as at 31 December 2014.

GOVERNANCE & ACADEMIC QUALITY

InternationalAcademic Panel

Academic Quality Panel

External Academic Audit

SIM Quality Assurance Committee

Academic Board Academic Board

SIM University Singapore Institute of Management Pte Ltd

Board of Trustees Board of Directors

Mandatory Enhanced Registration Framework1

Mandatory Enhanced Registration Framework1

Quality Assurance Framework for Universities (MOE)2

EduTrustCertification Scheme3

External Examiner System University Partners’ External Agency Audit and University

Partner Audit

Singapore Instituteof Management

SIM Governing Council

SIM External Academic Review



SIM GOVERNING COUNCIL

Mr Victor Liew

Vice-Chairman SIM Governing Council(from 15 May 2014)

ChairmanCapitaRetail China Trust Management Ltd

Mr Gerard Ee

ChairmanSIM Governing Council(until 15 May 2014)

Mr Patrick Fang

Managing DirectorPFang & Associates

Professor Bernard Tan

Professor of PhysicsNational University of Singapore

Ms Junie Foo

Head, Corporate Banking Singapore and Head, Global Subsidiary Banking, Asia Oceania Bank of Tokyo- Mitsubishi UFJ Ltd

Ms Isabella Loh

ChairmanSingapore Environment Council

Mr Tan Soo Jin

ChairmanSIM Governing Council (from 15 May 2014)

AdvisorAmrop Singapore/Gattie–Tan Soo Jin Management Consultants Pte Ltd



SIM GOVERNING COUNCIL

Mr Winston Tan

Managing DirectorWinmark Investments Pte Ltd & Corporate Brokers International Pte Ltd

Mr Tan Choon Seng

ChairmanTruscott Group

Mr George Thia

Business ConsultantAsiainc Pte Ltd

Professor Cham Tao Soon

Special Advisor to SIM Governing Council

President EmeritusNanyang Technological University

Mr Ronald Tan

Ex-OfficioSIM Governing Council

Executive Director Singapore Institute of Management

Dr Rosemary Tan

Chief Executive OfficerVeredus Laboratories Pte Ltd

HONORARY CHAIRMENDr Richard K M EuMr Tan Chok Kian

AUDIT COMMITTEEChairmanMr Winston TanMembersMr Victor Liew Professor Bernard Tan

CAMPUS DEVELOPMENT STEERING COMMITTEEChairmanMr Gerard Ee (until 15 May 2014)Mr Tan Soo Jin (from 15 May 2014)MembersProfessor Cham Tao SoonMr Tan Choon Seng (from 15 May 2014)

FINANCE COMMITTEEChairmanMs Isabella LohMembersMr Tan Choon Seng Mr Fong Heng Boo (external)

REMUNERATION COMMITTEEChairmanMr Patrick FangMembersProfessor Bernard Tan (until 15 May 2014)Mr Tan Soo Jin (until 15 May 2014)Dr Rosemary Tan (from 15 May 2014)Mr George Thia (from 15 May 2014)

MEMBERSHIP COMMITTEEChairmanDr Rosemary Tan (until 15 May 2014)Ms Junie Foo (from 15 May 2014) MembersMr Patrick FangDr Rosemary Tan (from 15 May 2014)

NOMINATION COMMITTEEChairmanMr Gerard Ee (until 15 May 2014)Mr Tan Soo Jin (from 15 May 2014) MembersMr Victor Liew (from 15 May 2014)Dr Rosemary Tan (from 15 May 2014)Professor Cham Tao SoonMr George Thia (until 15 May 2014)

INVESTMENT COMMITTEEChairmanMr Victor LiewMembersMs Isabella LohMr George ThiaMr Kevin Scully (external)



SIM UNIVERSITY BOARD OF TRUSTEES

Mr Richard Y M Eu

Group Chief Executive OfficerEu Yan Sang International Ltd


Chancellor SIM University (until 15 May 2014)

ChairmanSIM University Board of Trustees(until 15 May 2014)


Mr Ong Boon Hwee

Chief Executive OfficerStewardship Asia Centre

Professor Leo Tan Wee Hin

Director (Special Projects)Faculty of ScienceNational University of Singapore

Professor of PhysicsNational University of Singapore

Professor Bernard Tan Professor Chong Chi Tat

University Professor Department of MathematicsNational University of Singapore

Mr Gerard Ee

ChancellorSIM University(from 16 May 2014)

ChairmanSIM University Board of Trustees(from 16 May 2014)

Mr Ronnie Tay

Chief Executive OfficerNational Environment Agency



SIM UNIVERSITY BOARD OF TRUSTEES

Ms Ang Bee Lian (from 1 June 2014)

Director Social WelfareMinistry of Social & Family Development

Mr Ng Cher Pong

Chief ExecutiveSingapore Workforce Development Agency

Former Deputy DirectorHigher Education DivisionMinistry of Education

Mr William Lim (until 1 September 2014)

Mr Lam Yi Young (from 1 September 2014)

Deputy Secretary (Policy) Ministry of Education

Adjunct Professor Seah Moon Ming

Executive Director and Group Chief Executive Officer Pavilion Energy Pte Ltd

Mr Ronald Tan

Executive DirectorSingapore Institute of Management

Professor Cheong Hee Kiat

Ex-OfficioSIM University Board of Trustees

PresidentSIM University

Associate Professor Yip Woon Kwong

Secretary SIM University Board of Trustees

RegistrarSIM University

Dr Lee Kwok Cheong (until 15 May 2014)

Chief Executive OfficerSingapore Institute of Management Pte Ltd

AUDIT COMMITTEEChairmanMr Ramasamy DhinakaranMembersProfessor Leo Tan Wee HinMr William Lim (until 1 September 2014)

ESTABLISHMENT COMMITTEEChairmanProfessor Cham Tao Soon (until 15 May 2014)Mr Gerard Ee (from 16 May 2014)MembersMr Ong Boon HweeProfessor Leo Tan Wee HinMr Ronald TanProfessor Cheong Hee Kiat

FINANCE COMMITTEEChairmanProfessor Bernard Tan MembersMr Ronnie TayAdjunct Professor Seah Moon MingMr Ong Boon HweeProfessor Cheong Hee Kiat

NOMINATION COMMITTEEChairmanProfessor Cham Tao Soon (until 15 May 2014) Mr Gerard Ee (from 16 May 2014)MembersAdjunct Professor Seah Moon MingMr Ong Boon Hwee



SINGAPORE INSTITUTE OF MANAGEMENT PTE LTD BOARD OF DIRECTORS

Mr Vincent Chin

Senior Partner & Managing Director The Boston Consulting Group

Mr Ong Boon Hwee

Chief Executive OfficerStewardship Asia Centre

Chief Executive Officer Singapore Institute of Management Pte Ltd

Dr Lee Kwok Cheong Mr Victor Liew

ChairmanCapitaRetail China Trust Management Ltd

Mr Ronald TanProfessor Cheong Hee KiatMr Gerard Ee

ChairmanSingapore Institute of Management Pte Ltd Board of Directors(until 15 May 2014)

Mr Tan Soo Jin

ChairmanSingapore Institute of Management Pte Ltd Board of Directors (from 15 May 2014)

AdvisorAmrop Singapore/Gattie–Tan Soo Jin Management Consultants Pte Ltd


Special Advisor to SIM Governing Council


Executive Director Singapore Institute of Management

Ex-OfficioSingapore Institute of Management Pte Ltd Board of Directors

President SIM University

HUMAN RESOURCES COMMITTEEChairman Mr Gerard Ee (until 15 May 2014)Mr Tan Soo Jin (from 15 May 2014)MembersMr Victor Liew Mr Ong Boon Hwee



CELEBRATING 50 YEARS OF FULFILLING ASPIRATIONSIn 1964, with a founding grant from the Economic Development Board, SIM was set up to develop professional managers and leaders to support industrialisation and economic growth. From its beginning, SIM aspired to equip individuals to go further with the necessary knowledge and skills. Over the next five decades, SIM redrew the map of learning and transformed the education and training landscapes through many innovative programmes that helped individuals achieve success in parallel with the nation’s economic story.

The story of SIM has been told through the tens of thousands of people who have been empowered to set and fulfil their goals for personal development and career advancement. This sense of fulfilment makes “Fulfilling Aspirations” a deserving theme for our 50th year celebrations.

To celebrate this important milestone, a year-long series of activities was organised to engage different stakeholders in appreciating the rich heritage of SIM.

Transformations Learning Series #1 – Azran Osman Rani28 February 2014

This was a learning series that brought established global practitioners to share insights into the successful transformation of their careers and businesses. In the first of the series, Azran Osman Rani, CEO of AirAsia X, shared on the role of leadership and innovation in driving the airline’s global business growth.

LSE Public Lecture #1 – Professor Paul Kelly07 April 2014

At this inaugural lecture, Professor Paul Kelly, Pro-Director for Teaching & Learning at the London School of Economics (LSE), spoke about the great Massive Open Online Courses (MOOCs) debate and its future in the role of education and learning.

Unveiling of SIM50 logo and microsite10 February 2014

The SIM 50th Anniversary celebrations was officially announced to staff at the staff’s annual Chinese New Year lunch, with the unveiling of the SIM50 logo and theme. The SIM50 microsite, www.sim50.edu.sg, was also launched to communicate to all stakeholders the anniversary activities.

CSR: Food for Families #115 March 2014

In line with our social mission to benefit the community we are in, SIM adopted two charities – the Student Advisory Centre (SAC) and the Singapore Children’s Society (SCS) – as part of its anniversary corporate social responsibility (CSR) drive. A number of activities were designated to raise funds for the charities. To start, SIM staff, faculty, students and their families raised funds, packed and distributed food to 120 underprivileged students at the SAC.

Faculty Appreciation Dinner22 March 2014

The annual dinner was a platform for appreciating the important role that SIM’s faculty and associate lecturers played in the institution’s success. Attended by some 600 faculty, associates and staff, the event also recognised the teaching excellence and contributions of long serving associates.

CSR: Project One Heart25–27 March 2014

SIM-RMIT University students raised funds from the sale of popular merchandise with proceeds going to the SCS.



CSR: Food for Families #210–11 October 2014

Following the successful first run, SIM packed and distributed 90 food packs to needy families under the SAC.

LSE Public Lecture #2 – Professor Michael Cox20 November 2014

Professor Michael Cox, Professor of International Relations at the LSE, spoke about the rise of China and its impact on Asia in the 21st century.

Opening of Heritage Gallery and Launch of Commemorative Book27 November 2014

The storied legacy of SIM is captured and displayed in a heritage gallery at SIM. Staff witnessed the sealing of a time cube that will carry the memories of SIM 2014 into the future. The event also saw the launch of a commemorative book chronicling SIM’s history and development over five decades.

SIM HQ Phase 2 Official Opening and SIM50 Gala Dinner28 November 2014

Two important events marked this actual birthday of SIM. Phase 2 of the completed campus development was officially opened by Mr Lim Hng Kiang, Minister for Trade and Industry. Mr Lim also officiated at the SIM50 gala dinner attended by some 500 guests from industry, capping the year-long celebrations.

Carnival and Vertical Climb20 September 2014

A Carnival was held at the SIM Clementi campus for alumni, students, members, staff and their families for a day of food and fun. As part of the Carnival, a Vertical Climb event challenged participants to scale a seven-storey block on the campus. Both the Carnival and Vertical Climb helped raise over $30,000 for the two adopted charities.

Transformations Learning Series #2 – Pierluigi Collina08 April 2014

Pierluigi Collina, six-time FIFA Best Referee of the Year, translated his experiences on the pitch into “The Art of Decision Making” that applies to individuals and businesses alike.

SIM Homecoming11 July 2014

The first-ever combined homecoming of the alumni families from UniSIM and SIM GE across five decades was an alumni-for-alumni event with food and beverage provided by alumni vendors as well as entertainment by SIM GE student performers.

33rd Annual Management Lecture11 September 2014

The anchor event of the SIM Management Festival featured the World’s #1 Most Influential Management Thinker, Harvard Professor Clayton Christensen, who shared his revolutionary theory “Disruptive Innovation”.

CELEBRATING 50 YEARS OF FULFILLING ASPIRATIONS

CSR: Gifts for Father’s Day09 June 2014

SIM staff conducted a half-day workshop to teach children at the SCS Jurong West branch how to design a box and cupcake as a gift for their fathers.

Transformations Learning Series #3 – Catherine DeVrye27 June 2014

Former Australian Executive Woman of the Year and best-selling author Catherine DeVrye shared on the importance of conquering change in today’s fast-moving world.



Change is the only constant in life. Despite the many changes in education, SIM remains committed to empowering people to scale new heights through lifelong learning. As the leading private education institution, we help bring fresh perspectives and innovative pathways through our dynamic range of industry-based, globally relevant and rigorous academic offerings.



SIM’s unique mission: empowering people to fulfil their aspirations through holistic and diverse pathways of education and lifelong learning.

Every learner is different. Our student may be a school leaver seeking a firm academic pathway or someone in mid-career looking at skills upgrading on the job. Wherever she is on her learning journey, we have a programme that will match her aspirations.

Our programmes at SIM University (UniSIM) and SIM Global Education (SIM GE) are continually calibrated to ensure they are student-centred, rigorous and relevant. After all, if our learners come from all walks and stages in life, why must our education be a one size fits all?

SIM UNIVERSITY

Full-Time ProgrammesIn 2014, UniSIM through the UniSIM College launched its first full-time undergraduate programmes in Accountancy, Finance and Marketing.

A total of 1,518 applications were received for 200 places. Subsequently, 217 students were enrolled in their first semester.

As part of their orientation, the students attended a three-day Outward Bound Singapore teambuilding event at Pulau Ubin. The event aimed to help students bond with one another and to break out of their comfort zone and develop leadership and organisational skills.

Strong foundations were also laid for the Service Learning component of the full-time curriculum. Partnerships were forged with

social enterprises, charitable organisations, government agencies and other relevant parties to allow our students to undertake various social service projects. Ten new Memorandums of Understanding (MOU) for work attachments were also signed, bringing our total number of work attachment partners to 26. The first student work attachments, which will be structured with a minimum duration of 24 weeks, are expected to commence in 2016.

At the close of the year, three full-time students — Han Yi Li, Matthew Sim and Kenneth Yap — represented UniSIM at the Fifth ASEAN–Korea Frontier Forum, where they joined university students and entrepreneurs from ASEAN member states and South Korea to discuss topics such as youth job creation and disaster management. The team won the Excellence Award and second prize for their outstanding performance, a proud achievement for our inaugural batch.

A UNIQUE MI5SI0N

In December 2014, the Ministry of Education gave in-principle approval for UniSIM to offer full-time programmes in Human Resource Management, Social Work and Supply Chain Management over the next two years.

To support the expansion of UniSIM’s full-time programmes, we have been steadily expanding our full-time faculty strength. At the end of 2014, UniSIM College had 20 faculty members and 12 administrative staff.

Part-time ProgrammesWhile 2014 was an exciting year due in part to our new ventures in full-time programmes, we remained focused on our part-time programmes for working adults. UniSIM debuted three new part-time undergraduate programmes: the Bachelor of Art Education, Bachelor of Music Education and Bachelor of Sports and Physical Education. All these programmes offer students minors in Management or Psychology.

Work has also been progressing at a steady clip on the third law school to be hosted at UniSIM. The school is expected to be formally set up in 2015.

2014 Convocation“Fulfilling Aspirations” was the theme of the UniSIM Convocation, the opening session of which was graced by Deputy Prime Minister Teo Chee Hean. 2,132 graduates were graduated over three days. Among the graduates were the pioneer batches from the Master of Community Leadership and Social Development programme, as well as the Bachelor programmes in Accountancy, Building and Project Management, Chinese Language Education, Communication with Military Studies, Human Factors and System with Military Studies, Human Resource Management with Military Studies, and Sociology with Military Studies.

UniSIM’s inaugural full-time students at an Outward Bound Singapore (OBS) teambuilding event

Deputy Prime Minister Teo Chee Hean speaking as guest-of-honour at the opening session of the UniSIM Convocation



Industry PartnershipsTo provide a relevant quality education that supports the diverse aspirations of our students, we actively engage with industry players to ensure relevance in our programmes.

To create more awareness on employment opportunities in logistics, the School of Business jointly organised the third season of the Supply Chain Challenge with the Singapore Logistics Association and supported by SPRING Singapore. The School also signed MOUs with CIMB Securities and the Bhutan Royal Institute of Management to collaborate in the areas of equity investment and logistics respectively.

The School of Arts and Social Sciences held a symposium Well-being in Singapore: Current Developments and Implications which explored how a better understanding of the well-being

of individuals will lead to a happier, healthier and more productive society. The symposium’s 209 participants had the unique opportunity to hear from experts and thought leaders from both academia and industry.

The School of Human Development and Social Services signed an MOU with Republic Polytechnic to upgrade the knowledge and skills of professionals in the sports sector through further studies and Continuing Education & Training.

The UniSIM Centre for Chinese Studies and the Singapore Film Society continued a partnership begun in 2013, to organise the 2nd Singapore Chinese Film Festival in 2014 which brings quality Chinese cinema to audiences in Singapore as part of efforts to promote the Chinese language and culture.

Speakers at the Well-being in Singapore symposium

UniSIM was the perfect place for me to discover and share aviation knowledge with fellow students and lecturers from the industry.

As a part-time student, I was able to gain knowledge and work experience simultaneously, and to blend both by applying what I had learnt to real situations at work. Besides acquiring broader knowledge of the aviation industry, I have also made many friends and strengthened my network.

My experience at UniSIM has certainly been of great importance and benefit to my career.

SAMUEL ONGSenior Engineer, ST AerospaceUniSIM Alumnus (2012)



Real-World Research The Centre for Applied Research (CFAR) continued to support industry partners in research. The quarterly Business Times–UniSIM Business Climate Survey was into its eighth year of publication while the LTA Public Transport Customer Satisfaction Survey was into its sixth year.

CFAR also completed Singapore’s first national study on early childhood parenting, commissioned by the Early Childhood Development Agency. It also worked with the Singapore Prison Service to evaluate the

effectiveness of its Yellow Ribbon Community Outreach Programme.

In CFAR-administered research, nine projects were completed and five new funding applications were approved during the year.

Other research achievements in the year included a Memorandum of Collaboration between the School of Science and Technology and ST Kinetics which committed to providing an initial amount of S$100,000 in research funding to UniSIM.

UniSIM collaborates with ST Kinetics on research

Some 200 attendees also attended the 2014 UniSIM Contemporary China Public Lecture “Greying Chinese Societies: The Old, the New and the Inevitable” which addressed demographic trends in China as well as the ageing issues faced by countries like Taiwan and Singapore.

Industry RecognitionWe received accreditations for several programmes in 2014. The Bachelor of Building and Project Management and the Bachelor of Science in Facilities and Events Management received accreditation by the Royal Institution of Chartered Surveyors while the Bachelor of Engineering in Aerospace Systems received provisional accreditation by the Engineering Accreditation Board.

Our accredited accountancy degree was recognised by the Singapore Accountancy Commission for the purpose of direct admission to its Professional Programme of the Singapore Qualification Programme. Support for Digital and e-learningAs one of the earliest adopters of e-learning, we continued to ramp up opportunities for students to learn online by working towards our target of having 50% of all courses offered as e-courses by end 2015. To date, more than 280 iStudyGuides and 80 e-textbook titles have been produced to support this.

A new Learning Systems and Applications (LSA) unit was set up in January to provide further support for UniSIM’s e-learning initiatives. LSA provides technical services, technology training

and helpdesk support for all users of e-learning. It also aims to spearhead the development of innovative mobile learning technologies and applications that enhance students’ learning experience. During the year, LSA has improved the overall system performance of UniSIM’s Blackboard Learning Management System and launched a new mobile application UniSIM Backpack which gives students quick access to interactive study guides, recorded lectures, past-year exam papers and learning resources.

The UniSIM Backpack mobile app gives students quick access to learning resources

UniSIM’s UCCS public lecture on ageing issues



SIM GLOBAL EDUCATION

New Programmes and VenturesIn responding to market needs, SIM GE launched several new programmes in 2014. With the University of London (UOL), it launched the International Foundation Programme (Full-time), the Bachelor of Science (Honours) in Business and Management (Full-time and Part-time) and the Bachelor of Science (Honours) in International Relations (Full-time).

It also launched the Bachelor of Business Information Systems (Full-time) with the University of Wollongong.

SIM GE also introduced a part-time Foundation Programme to provide accountancy students with an alternative pathway to the Singapore Qualification Programme.

One factor of SIM GE’s success is the strong partnerships we have with our overseas partners. During the year, we celebrated 10 years of collaboration in undergraduate studies with the University at Buffalo (UB). Over the decade, more than 2,000 students have graduated from our UB programmes. Today, we offer six majors with UB in Business Administration, Communication, Psychology, Sociology, Economics and International Trade. Four SIM–UB scholarship places were offered as part of the celebration.

We also celebrated 20 years of partnership with the University of Sydney, a partnership that has produced more than 2,500 nursing graduates. To commemorate this important

which runs parallel to the main Championship event, saw our windsurfers deliver a strong performance to win a total of two gold, one silver and two bronze medals.

The SIM Dragonboat Club, fondly known as the SIM Dragons, achieved a historical first when both its men and women teams beat NUS, NTU and SMU to clinch the coveted Prime Minister’s Challenge Trophy at the annual Singapore Dragonboat Festival. Our women team raised the trophy for the first time in the Club’s nine-year history while our men team successfully defended their title for the second consecutive year, their third title since 2010.

Student Mohd Hafiz bin Mohd Azhar also did us proud, placing as overall male champion of the inaugural Silat University Games organised by SIM GE in 2014.

Academic AchievementsOur students continued to do well academically. A total of 167 out of 2,985 UOL students received first class honours, while students from other universities such as University of Birmingham, UB and RMIT University also achieved excellent results.

Achievements in Sports and ArtsIn 2014, our sports teams participated and won many medals at the 17th ASEAN University Games, the Institute-Varsity-Polytechnic Games and the Singapore University Games (SUniG). Some of the SUniG competitions were hosted at our brand new Multi-Purpose Sports Hall.

The SIM 33rd Singapore Open Asian Windsurfing Championship of which SIM GE has been title sponsor for five years running, attracted 136 surfers from more than six countries. The SIM Windsurfing Championships,

milestone, an Industry Scholarship Programme was launched to offer opportunities for further studies for practising nurses.

Separately, we explored several international locations with the aim of bringing the SIM GE brand and educational expertise overseas.

Industry Partnerships and RecognitionThrough a three-year collaboration with UOB Bullion & Futures, we set up a financial training centre to provide hands-on experience for diploma and undergraduate banking and finance students. To help promote financial literacy, SIM GE will also support the industry outreach activities organised by UOB Bullion & Futures.

We also signed an MOU with the Chartered Institute of Management Accountants (CIMA) which allows our Diploma in Accounting students to be granted credit exemptions for the CIMA Diploma in Management Accounting.

SIM GE – Chartered Institute of Management Accountants MOU signing to grant credit exemptions for diploma students

SIM medallists at the SIM Windsurfing Championships



In the arts, our talented arts clubs staged several major productions during the year. The SIM String Ensemble took the stage with SIMphony No. 4 — the club’s largest ticketed showcase to date. SIM DreamWerkz also put up the first production at the new Performing Arts Theatre.

Other performances by student clubs include Chapters of Love: A New Year’s Story by SIM Film & Performing Arts Society, (All)titude: Pulse by SIM Dance Art, Esprimere Sings by SIM Esprimere Singing Club, and Behind the Strings by SIM Guitar Club.

Global ExposureOur programmes and diverse learning environment equip students with a global perspective and internationally relevant skills that are crucial in today’s global environment.

SIM GE’s suite of programmes to get its students global-ready was attended by some

held fundraising sales as part of SIM’s 50th Anniversary to raise funds for the Singapore Children’s Society, one of SIM’s adopted beneficiaries for the year.

Another student-led SIM50 Corporate Social Responsibility initiative Transformers – Furnishing Dreams, One Home at a Time refurbished 10 homes around Bukit Merah View. The organiser, the UOL Student Representative Council, also took another group of elderly residents on an excursion to RWS Sea Aquarium, Sentosa and Gardens by the Bay.

Other student CSR activities in the year included a food drive by UB students for The Food Bank Singapore and a kite-flying session by SIM iCare for children from the Chen Su Lan Methodist Children’s Home.

Student WelfareSIM GE officially launched its Peer-Assisted Learning (PAL) Programme, which trains senior students as PAL leaders to impart learning skills to help students improve their academic outcomes.

PAL started with offering assistance for a number of subjects under UOL, RMIT University and University of Wollongong programmes. The number of programmes and subjects will be gradually expanded over time.

Other areas of student learning support that were launched included one-to-one consultation sessions with academic advisers as well as workshops covering academic writing, critical thinking and learning skills.

SIM GE also set up a new Student Wellness Centre, a resource centre to encourage healthy and optimal living for students. Besides serving as a resource and relaxation centre for students, the Centre also proactively organised workshops, talks and social activities to promote physical, mental and social health of students.

316 participants in 2014 and has benefited close to 2,000 participants since its launch in 2009. Students also had the opportunity to take up overseas stints in New York, San Francisco, Taiwan or Spain.

For the second year running, a 10-member delegation from SIM GE participated in the Harvard National Model United Nations, the oldest, largest, and most diverse student-run model United Nations conference in the world.

Two students from the SIM Young Entrepreneurs’ Network were also part of the Singapore delegation to the Asian Students’ Venture Forum in Korea to gain exposure on entrepreneurship abroad.

Service LearningAs part of our holistic education, we encourage students to cultivate social awareness and contribute to society. Project One Heart, organised by the SIM–RMIT Student Council,

SIM iCare organises a kite-flying session for children from the Chen Su Lan Methodist Children’s Home

SIM DreamWerkz performed to an audience of 1,300 at the new Performing Arts Theatre

Tea Session at the Student Wellness Centre

Behind the Strings by SIM Guitar Club



SIM GE gives me the opportunity to pursue my interests in the field of psychology as well as my passion for dance.

In 2013 and 2014, our dance group, Dance Art, were finalists in the Royal Dance-Off, which is a contemporary dance competition. Those were incredibly proud moments for us.

My participation in dance concerts, competitions and other student development activities have allowed me to meet people from all walks of life and expand my social network. I have also learnt to manage my time and cope with stress better.

Indeed, I have grown in confidence as a student and dancer.

JILLIAN TEOMember of SIM Dance ArtSIM GE Student and Scholar

Awards and RecognitionIn 2014, SIM GE successfully attained a four-year renewal of the Enhanced Registration Framework and EduTrust certifications, a strong endorsement of the quality of its systems, processes and educational outcomes.

For the sixth year running, SIM GE was voted best private institute at the AsiaOne People’s Choice Awards. SIM GE has been inducted

into the Hall of Fame in 2013, in recognition of its long-standing excellence in the private education sector.

Adjunct Professor Lee Kwok Cheong, CEO of SIM GE, was presented with the Doctor of Business Honoris Causa by RMIT University for his achievement, leadership and contribution to both the education and computer technology industries.

Adjunct Professor Lee Kwok Cheong was presented with the Doctor of Business Honoris Causa by RMIT University



In today’s fast-moving environment, the one who stops learning will be left behind. At SIM, we help busy executives rediscover the joy of learning and facilitate their journeys as lifelong learners with courses that are multi-modal, flexible and highly relevant.



Encouraging a passion for lifelong learning is the overarching mission of SIM. Our diverse opportunities for personal and professional development through Continuing Education and Training (CET) are in alignment with national efforts to integrate education with training, career relevance and economic progression.

Offered by SIM Professional Development (SIM PD) and UniSIM, our suite of CET programmes comprises short, public programmes, customised in-company programmes, as well as bite-size modular, credit-earning courses that can accumulate to a professional certification or degree. We are committed to making learning accessible, relevant and effective for the executive who works and learns throughout his life.

SIM PROFESSIONAL DEVELOPMENTOver 11,000 senior professionals, managers and executives (PMEs) sought to sharpen their competitive edge through skills enhancement with SIM PD in 2014. These PMEs benefited from over 500 seminars and workshops and in-company programmes across a wide range of subjects.

During the year, SIM PD also streamlined its portfolio of programmes to focus on those at management levels. There was an increase of 17% in the number of core programmes at such levels, making up more than one-third of the overall portfolio of programmes offered.

Senior Level Programmes

The Job of the Chief Executive ProgrammeThe annual Job of the Chief Executive (JOCE) programme was attended by 28 C-suite executives from the Asia-Pacific region. Over five intensive days, participants shared best practices and examined the challenges of their roles in today’s highly competitive and

globalised economy. JOCE is now in its 35th year with an alumni of over 1,300 business leaders from 40 countries worldwide.

Transformations Learning SeriesAs part of the SIM50 celebrations, SIM PD organised the Transformations Learning Series which brought successful leaders in their fields to share their take on business and management. Three such talks were organised and attracted over 1,500 professionals.

A PAS5I0N FOR LEARNING

Participants of the Job of the Chief Executive programme

JOCE’s approach to helping leaders look at their business frameworks enables us to clearly and objectively assess our companies’ current strategies and operations so as to chart the path forward. My deputies and I are working to apply the takeaways to our strategic plans, which we hope to implement later this year.

I have also benefited from the lively sharing which allowed participants to learn from one another. This would not have been possible if the trainers were not world-class thinkers themselves.

I highly recommend JOCE to all SMEs aspiring to take on the world.

ERIC LAMChief Executive Officer, Amdon Consulting Pte LtdJOCE Participant (2014)



and young adults titled “Start Your Investing Journey Today: Investing Today Matters Tomorrow”. The oversubscribed event saw 866 attendees learning investment tips from expert speakers and broadening their understanding of investing at booths set up by partners such as MoneySENSE, Securities Investors Association (Singapore), OCBC Securities, POSB and PhillipCapital.

UniSIM and Singapore Sports School (SSP) signed an MOU to provide opportunities for young sports men and women to pursue higher learning that will stand them in good stead both during and after their sports careers. Athletes identified by SSP will be able to take UniSIM’s CET courses and earn credit units for UniSIM’s undergraduate programmes.

UniSIM also signed a collaborative agreement with Creative Media Academy to promote CET in the creative media industry. Such

courses aim to help build up a pool of media professionals with on-the-job technical and management competencies.

To support the government’s move to raise awareness and excellence in the field of ergonomics, the School of Science and Technology (SST) partnered the Workplace Safety and Health Council and Workforce Development Agency to organise the Ergonomics Forum and an ergonomics awareness workshop for professionals in the field.

SST and the Republic of Singapore Air Force also offered as part of our Aerospace Systems degree programme a full-time CET programme which allows students to matriculate directly into the degree programme. The customised CET programme was attended by the first cohort of 16 students.

The investment event with Singapore Exchange received overwhelming response

In-Company ProgrammesSIM PD drew on its vast experience in providing customised Learning & Development solutions to develop the competencies of 5,300 executives and professionals through in-company projects. These seek to help corporations maximise the full potential of their human capital, growing capabilities to meet the future.

SIM Management Festival 2014The 3rd SIM Management Festival brought together diverse stakeholders for a number of talks and forums on management and leadership excellence. Signature events of the Festival include the Annual Management Lecture (AML), the SIM Management Monitor and the Business Management Challenge.

SIM’s 33rd AML, titled “Disruptive Innovation”, was delivered by Professor Clayton Christensen, Thinkers50’s Most Influential Management Thinker of 2011 and 2013. Professor Christensen shared with an audience of 500 executives his theories on how disruptive innovations can rejuvenate the market and grow new businesses.

The SIM Management Monitor, a biennial survey now in its third edition, samples viewpoints on the business climate and state of management practice from a cross-section of management personnel in Singapore. This year, the emphasis was on a multi-generational workforce and succession planning, with opinions collected from more than 1,000 respondents. The results were shared at a public forum, where participants discussed

the implications of the findings and possible measures of response.

The 3rd annual Business Management Challenge saw ten teams of students from local universities compete to present strategic business plans based on a brief from a local thermal imaging company. The winning presentation was made by a team of UniSIM and SIM GE students.

SIM University

CET CollaborationsTo enhance its current suite of 400 CET courses, UniSIM partnered Singapore Exchange (SGX) to develop financial and investment-related courses to promote investor education to members of the public and UniSIM students.

One of the first activities organised under the new partnership was the SGX–UniSIM Investor Education Day targeted at students

A forum to discuss the results of the SIM Management Monitor



The real voyage of discovery consists not in seeing new lands but in seeing with new eyes. The sharing of ideas and insights open up new perspectives and options, and with it, new possibilities for collaboration and growth. SIM’s out-of-classroom learning and networking opportunities tap on the power of social connections to help executives stay ahead of the curve.



The spirit of lifelong learning transcends space and time. As such, learning at SIM goes beyond formal settings and the mere acquisition of qualifications. SIM Membership offers a wide range of formal and informal opportunities to make learning come alive through the engagement of a rich learning community of people with diverse capabilities and experiences.

SIM MEMBERSHIP

Membership ProfileAt the end of 2014, SIM Membership stood at 48,848 individual and 575 corporate members with a membership retention rate at 90%.

Click here to view the SIM Membership and Interest Group profiles.

Networking and Experiential LearningAs part of its efforts to boost the skills and marketability of members, SIM Membership organised exclusive talks with headhunters to share career advice. Speakers included Julie Winkle Guilioni, a best-selling author and Adrian Tan, President of the Singapore Professional Recruitment Organisation.

Successful business owners and managers brought business lessons to life by imparting hard-won secrets from their experiences. Talks which featured local entrepreneurs like Lyn Lee of Awfully Chocolate and Ng Chee Soon, President and Managing Director of Sennheiser Asia, provided valuable insights for members’ learning.

A group of 35 members visited the Bintan Lagoon Resort, where Moe Ibrahim, CEO of Journeyful and owner of Bintan Lagoon Resort, uncovered the finer points behind the acquisition of the resort and its turnaround from bankruptcy.

The 3i — Innovative Industry Insights — series continued to give members opportunities to learn from successful innovative companies. More than 50 members had one such opportunity as they learnt from the innovative approach of managing the Singapore Sports Hub, an iconic $1.33 billion public-private partnership.

A 50CIAL PARTNERSHIP

SIM Interest Group ConventionThe SIM Interest Group Convention saw a record turnout of over 550 attendees. Keynote speaker Rob Lilwall, a National Geographic TV adventurer and author of Cycling Home from Siberia, shared on managing risks and solving problems in difficult and pressurising situations. The convention also featured other prominent industry leaders who trendspotted ideas and offered keen business insights.

New membership tie-ups and privilegesThe cultivating of strong partnerships and networks enables SIM Membership to add more value to our members by leveraging the resource pool of our valued partners.

Our partnership with Six Capital, an institution approved by the Monetary Authority of Singapore, gives members and SIM students access to premium resources like webcasts and journals. These materials offer business trend monitoring, breaking news in business, in-depth financial analysis from The Wall Street

Journal and complimentary foreign-exchange foundation courses.

We continued to take learning to the community at large through our third year of partnership with NTUC. Jointly-organised talks and outreach events on communication, influencing and leadership topics struck a strong chord with more than 400 PME participants.

Rob Lilwall sharing his cycling experience at the SIM Interest Group Convention

Members learning from the success story of Awfully Chocolate Members having a hands-on session on social media and blogging





INTEREST GROUP PROFILES (AS AT 31 DEC 2014)

Business Management Group (BMG)President: Ms Lee Beng Guat, Partner, Kam Boat Chinese Cuisine

BMG sharpens members’ business management skills and helps members tap their potential and improve professional performance.

China Interest Group (CIG)President: Ms Susan Lim, Managing Director, Linden Industries Pte Ltd

CIG provides a platform for professionals who have a common interest in or investments in China. The group offers opportunities for establishing links, widening contacts and sharing first-hand experiences.

Human Resource Interest Group (HURIG)President: Ms Yap Mei Cheng, Managing Consultant, Nissi HR & OD Consultancy

HURIG promotes exemplary practices in human resource management in tandem with changing developments in the human resource field.

Information Technology Group (ITG)President: Dr Tan Kow Wah, Chief Executive Officer, AKW International Pte Ltd

ITG promotes the use of IT in sharpening member’s competitive edge in the marketplace by providing a network for information exchange.

SIM HONORARY FELLOWS

Dr Richard Eu

Mr Herman Hochstadt

Dr Lee Seng Gee

Mr Lim Kee Ming

Mr Ngiam Tong Dow

Mr J Y Pillay

Mr Shaw Vee Meng

Mr Wee Cho Yaw

Mr John Yip

Innovation & Quality Management Group (IQMG)President: Mr Chua Kok Leong, Marketing Manager, ERA Realty Network Pte Ltd

IQMG aspires to be a premier network of practitioners that embrace innovative concepts and methodologies in quality among organisations and individuals in Singapore.

Marketing Executives Group (MEG)President: Ms Valerie Chow, Manager, Marketing Communications, Harvey Norman Singapore

MEG promotes the study and practice of the latest marketing concepts to enrich members’ marketing knowledge.

Organisation Development Group (ODG)President: Mr Gerald Ng, Principal Consultant, Learning Solutions

ODG raises the profile of the OD profession by helping members build skills in various aspects of OD and by sharing research and expertise among members.

SIM I Toastmasters Club (TMI)President: Ms Ng Yee Hoon, Vice-President, Loan Advisory, Commerzbank AG

SIM II Toastmasters Club (TMII) President: Mr Amandoron Ludwig Plenos, Director, Global Marin Services Pte Ltd

TMI & TMII help members to sharpen their communication, presentation and leadership skills through enjoyable and interactive programmes.

SIM Mandarin Toastmasters Club (MTM)President: Ms Lim Lang Kheng, Manager, Tai Kang Company

MTM helps members to sharpen their communication, presentation and leadership skills through enjoyable and interactive programmes delivered in the Chinese language.

Strategic Management Group (SMG)President: Mr Terence Lim, Head, Singapore Armed Forces Print Centre, Ministry of Defence

SMG promotes the practice of strategic management in commercial, non-profit and government organisations by enriching members’ strategic management knowledge.

The Entrepreneurs Group (TEG)President: Mr Chen Siew Ik, Engineer, COM Consultants

TEG organises activities that are relevant to small and medium-sized businesses, and enhances members’ knowledge and entrepreneurial skills.

Individual members (as at 31 Dec 2014) Number of membersHonorary Fellow 9Ordinary 1,901Associate 1,789Student 45,097Silver (Retired) 52Total 48,848Corporate members (as at 31 Dec 2014) Number of membersCompanies with 1–100 employees 383Companies with 101–500 employees 119Companies with 501–1,000 employees 33Companies with over 1,000 employees 40Total 575Grand Total 49,423

MEMBERSHIP STATISTICS

Alumni EngagementAlumni of UniSIM and SIM GE which number over 25,000 and 120,500 respectively, form a strong network of executives whose potential can be tapped for the benefit of the whole SIM community.

In 2014, UniSIM organised activities including talks, seminars and social events to connect and engage with our alumni.

Dialogue sessions were also held to provide a platform for alumni members to share their thoughts on national issues. At one such dialogue session, some 50 students and alumni of the Master of Gerontology programme met with Mdm Halimah Yacob, Speaker of Parliament, to discuss Singapore’s ageing population.

SIM GE engaged its alumni to give back to its alma mater through the Alumni Career Mentorship Programme. Now in its third year, the programme has grown to encompass a pool of 56 alumni whose guidance and mentorship has benefited many students.

In the same spirit, the SIM GE Scholars’ Network engaged alumni to inspire others with their stories at the CEO Dialogue series. The third session of this dialogue series during the year was attended by some 100 students who gained insights from speakers Gillian Tan, general manager of food-service packaging company Huhtamaki Singapore, and Manjit Gill Singh, managing director of Vigers Real Estate.

When I entered the workforce 20 years ago, SIM Membership’s programmes and activities gave me a good start to my career.

Even now, publications like Today’s Manager keep me in touch with the latest management knowledge. Networking events such as those jointly organised by SIM and NTUC allow me to build contacts with and learn from the insights of people from other industries.

In today’s environment where we have to constantly learn and re-learn, the opportunities provided by SIM Membership are valuable in helping us embody a learning culture.

TRACEY WONGChief Executive Officer, Institute of Estate Agents, SingaporeSIM Member

Participants enjoying themselves at the UniSIM alumni bowling event

Inaugural SIM GE alumni gathering at Johor Bahru

The SIM GE Overseas Alumni Chapters also had a busy year keeping in touch with overseas graduates. Reunion celebrations for these graduates were held in Hanoi and Guangzhou and, for the first time, in New Delhi and Johor Bahru. These events were much valued opportunities for alumni to re-connect and share their life journeys.



A holistic education does more than prepare one for academic achievement; it develops all quotients to ensure success and balance in life. At SIM, we not only continue to invest in a well-equipped and efficient infrastructure that supports optimal learning, but also in a vibrant learning community that nurtures a student’s all-rounded growth in mind, heart and body.



The SIM campus is an environment that hosts a diversity of learners and learning platforms. It is a living classroom and the ‘third teacher’ that facilitates sharing, debates and discovery, providing a holistic learning that brings out the best in every learner.

The potential power of such an environment drives our investments in campus development and in our people, systems and processes. Together, they create a well-supported, integrated and conducive space for learners to flourish.

INVESTING IN OUR STAFFAt the end of 2014, we had a total staff strength of 925, a 2.8% increase over the previous year. As an organisation that actively promotes lifelong learning, we continued to place a significant emphasis on developing our staff. Our training expenditure grew by 14% over 2013 to $1.6 million. The number of training places increased by 5% to more than 3,500. The majority of our staff achieved the target of 40 hours of training and development per staff per year.

While staff in line divisions attended public and customised courses to develop their functional competencies, managerial staff also attended

the SIM Leadership Series which honed their skills in leading and in developing and coaching staff.

INVESTING IN OUR FACULTYOur faculty plays an important role in framing the curriculum, shaping the learning environment, and bringing life to the classroom. In 2014, we continued to roll out new initiatives to enhance our faculty’s teaching skills and knowledge.

Scholarship of Teaching and Learning (SoTL) was a core focus for UniSIM this year. It aims to build over time a knowledge base of pedagogies that will translate into an evidence-based approach to teaching and learning. As part of the efforts to promote SoTL, an online, peer-reviewed journal and the Innovation Seed Grant for teaching associates were also launched.

UniSIM’s 4th Faculty Learning Symposium “Evidence-informed Practice: Action from the Ground Up” saw Professor Doug Hamilton from Royal Roads University, Canada, deliver a keynote address that highlighted opportunities for faculty to take a scholarly approach to improving their craft.

A LIVING CLAS5R0OM

At the SIM GE’s 4th Annual Education Conference, 120 academic staff and associate lecturers learned from Professor Diana Laurillard, University College London Institute of Education, who presented her concept of teaching that integrates the multi-dimensional aspects of teaching, learning and peer-to-peer interactions for optimal outcomes.

The 8th Annual University of London Lecturers’ Workshop featuring Dr Isabella Wong from the National Institute of Education and Chris New from the London School of Economics, discussed concepts of pedagogy and techniques for engaging students through more interactive lectures.

INVESTING IN CAMPUS INFRASTRUCTUREIn 2014, the long awaited final phase of expansion of our Clementi campus was completed with the addition of two more buildings. With this, our facilities now include more than 250 lecture theatres, tutorial and seminar rooms and computer laboratories. There is also a sports and performing arts complex, multi-purpose halls, a financial training centre, a management library, a student activity hub and a student care and wellness centre.

A larger bus stop with a canopy connected to the campus was also completed, providing an iconic frontage to our campus. There are also plans to build another sheltered canopy linking the campus to the bus stops and a larger overhead bridge, the latter of which will be built by the Land Transport Authority and ready in three years’ time.

To meet the growing demand from staff and students, we upgraded our Wi-Fi coverage and signal strength as well as Internet bandwidth.

We undertook works to upgrade our library management, financial and HR systems to achieve greater organisational efficiency and excellence.

INVESTING IN INFORMATION RESOURCESIn 2014, the SIM Library aimed to engage its users and enrich their experience. A project was undertaken to migrate its traditional library management system to a next-generation cloud-based library services platform. The new

UniSIM staff and speakers at the 4th Faculty Learning Symposium

The new iconic SIM Performing Arts Theatre and Sports Hall



system allows users to search, browse, and renew loans and place requests from one single platform. This is a significant milestone as our library is the first in Singapore to adopt this cutting-edge technology.

We improved our support for students with the introduction of a one-stop access to recommended readings via SIM GE’s learning management system. An open concept library counter was launched together with the Roving Librarians Service, where librarians actively assist library users with their browsing and research through the use of digital aids like iPads.

Our revamped Today’s Manager magazine gained new distribution channels and increased its subscriptions.

We published two books this year: Management in Focus: SIM Management Monitor 2014; and Creating the Fit by Dr Elizabeth Martin-Chua. To commemorate SIM’s 50th Anniversary, we also published two special commemorative books, A Momentous Journey of a Singapore First which chronicled SIM’s history and A Journey Through Time, showcasing the development of SIM’s publications over the years.

Management360 (http://m360.sim.edu. sg) is SIM’s management knowledge portal, a comprehensive resource of current management and leadership articles and videos. We continued to add to our catalogue as part of the portal’s aim to be a one-stop

SIM Scholars with founding chairman, Dr Richard Eu (centre)

resource centre for the best content on management and business related topics. Articles from previous Today’s Manager issues are available as well.

INVESTING IN OUR COMMUNITYTo make education available to more deserving individuals, UniSIM and SIM GE gave out a total of 28 scholarships in 2014. The total value of the bond-free scholarships awarded was over $600,000. This included three prestigious SIM–Richard KM Eu and SIM–You Poh Seng Scholarships each worth $100,000.

Maintaining our support for the arts, SIM sponsored for the 14th year the Singapore Symphony Orchestra President’s Young Performers Concert. The concert provided a platform for young Singaporeans pursuing their musical dreams to showcase their talents. This year’s concert also debuted a specially composed piece to commemorate SIM’s 50th Anniversary titled “Aspirations Overture”. The uplifting and inspiring piece was composed by Professor Bernard Tan, an SIM Governing Council member and Professor of Physics at the National University of Singapore.

SIM’s 50th Anniversary “Aspirations Overture” being played at SSO Concert

SIM’s 50th Commemorative Book



STAFF DIRECTORY

SINGAPORE INSTITUTE OF MANAGEMENT

Executive DirectorMr Ronald Tan Hee Huan

Campus DevelopmentMr Chia Chye Teck

Enterprise ServicesMs Peggy Lee

Internal AuditMr Albert Tay

Relationship and Events ManagementMs Tang Mei Sin

Strategic Plans and ResearchMr Jeffery Tan

SIM GROUP CORPORATE SERVICES

Group DirectorMr Seah Chiong Tian

Corporate CommunicationsMs Jocelyn Pang

Estates Mr Wong Kin Nyen

FacilitiesMr Joseph Lim

FinanceMr Eugene Chan

Human ResourcesMs Poh Ca Oon

Infocomm Technology ServicesMr Low Kin Kiong

SIM UNIVERSITY

PatronHis Excellency President Tony Tan Keng Yam

Chancellor and ChairmanProfessor Cham Tao Soon(until 15 May 2014)Mr Gerard Ee(from 16 May 2014)

Academic Advisors Professor Aline WongProfessor Eddie Kuo

President Professor Cheong Hee Kiat

ProvostProfessor Tsui Kai Chong

Registrar Associate Professor Yip Woon Kwong

Vice President (Learning Services)Associate Professor Wong Yue Kee

School of Arts and Social Sciences

DeanAssociate Professor Genice Ngg

School of Business

DeanAssociate Professor Lee Pui Mun

School of Human Development and Social Services

DeanProfessor Tan Ngoh Tiong

School of Science and Technology

DeanAssociate Professor Philip Cheang

UniSIM College

Assistant ProvostProfessor Koh Hian Chye

Office of Graduate Studies

Associate Professor Chay Yue Wah(until 14 September 2014)Associate Professor Cheah Horn Mun(from 15 September 2014)

Centre for Applied Research

Associate Professor Vincent Chua

Departments

Campus IT ServicesMr Gary Teo

Planning and FinanceMs May Goh

Quality Assurance UnitAssociate Professor Lew Sin Chye

UniSIM Centre for Chinese StudiesProfessor Eddie Kuo

Office of Academic ServicesMs Agnes Kwang

Office of AdmissionsMs Serene Lim

Office of Student and Alumni RelationsMs Evelyn Chong

Educational Technology and ProductionMr Kiang Tzy Peng

Learning Systems and ApplicationsMr Lee Chye Seng

Teaching and Learning CentreDr Selina Lim

SINGAPORE INSTITUTE OF MANAGEMENT PTE LTD

Chief Executive OfficerDr Lee Kwok Cheong

Assistant Chief ExecutiveMs Peggy Lim

Teaching and LearningDr Aaron Tan

AcademicDr Timothy Chan

Higher EducationMrs Ho Soon EngMr Lim Kuan MengMs Mary Lee

Programme OperationsMr Chiow Boon Keng

Student LifeMrs Ho Soon Eng

Student Services and Quality Services Mr Lee Khim Song

Business and Marketing RelationsMs Judy Wong

International DevelopmentMr Branson Kwok

IT and Facilities PlanningMs Tham Ai Chyn

Organisation Development and Change Management Mr Chris Chew (until 21 September 2014)

Planning and DevelopmentMr Yee Chi-Yan



CORPORATE INFORMATION

The Singapore Institute of Management is a not-for-profit professional membership organisation. It was incorporated and registered under the Societies Ordinance (Ch. 228) on 28 November 1964.

The principal activities of the Group include membership services, higher and continuing education, the provision of human resource development and training opportunities, and customised in-company training in Singapore and the region.

REGISTERED ADDRESSES/ HEADQUARTERSSIM HEADQUARTERS & SIM UNIVERSITY461 Clementi RoadSingapore 599491

CENTRESSIM MANAGEMENT HOUSE41 Namly Avenue Singapore 267616

CONTACT INFORMATIONSIM UNIVERSITYFull-time ProgrammesTel (65) 6248 0188Email [email protected]

Part-time ProgrammesTel (65) 6248 9777Fax (65) 6763 9077Email student_recruitment @unisim.edu.sgWeb www.unisim.edu.sg

SIM GLOBAL EDUCATIONTel (65) 6248 9746Fax (65) 6462 9411Email [email protected] www.simge.edu.sg

SIM PROFESSIONAL DEVELOPMENTTel (65) 6246 6746Fax (65) 6467 4401Email [email protected] www.sim.edu.sg

SIM MEMBERSHIPTel (65) 6248 9489Fax (65) 6462 5751Email membership@ sim.edu.sgWeb www.sim.edu.sg

CHARITY REGISTRATION NUMBER00180

UNIQUE ENTITY NUMBERS64SS0050A

TRUSTEESBRITISH AND MALAYAN TRUSTEES LIMITED1 Coleman Street #08-01 The AdelphiSingapore 179803(Date of appointment: 4 June 1974)

ESTATE AND TRUST AGENCIES (1927) LTD51 Emerald Hill RoadSingapore 229327(Date of appointment: 31 May 1986)

PRINCIPAL BANKERCITIBANK N.A., SINGAPORE BRANCH8 Marina View#21-00 Asia Square Tower 1Singapore 018960

LAWYERRAMDAS & WONG36 Robinson Road#10-01 City House Singapore 068877

AUDITORERNST & YOUNG LLP1 Raffles Quay #18-01Singapore 048583

CONTENTS

74 Statement by Governing Council

75–76 Independent Auditor’s Report

77 Statements of Comprehensive Income

78–79 Statements of Financial Position

80–82 Statements of Changes in Equity

83–84 Consolidated Statement of Cash Flows

85–141 Notes to the Financial Statements

SINGAPORE INSTITUTE OF MANAGEMENT AND ITS SUBSIDIARIES FINANCIAL REPORT 2014


7372 SINGAPORE INSTITUTE OF MANAGEMENT AND ITS SUBSIDIARIES

In the opinion of the Governing Council, the consolidated financial statements of Singapore Institute of Management and its subsidiaries (the “Group”) and the statement of financial position, statement of comprehensive income and statement of changes in equity of Singapore Institute of Management (the “Institute”) as set out on pages 77 to 141 are drawn up so as to give a true and fair view of the state of affairs of the Group and Institute as at 31 December 2014, and the results and changes in equity of the Group and Institute and cash flows of the Group for the financial year then ended and at the date of this statement there are reasonable grounds to believe that the Institute will be able to pay its debts when they fall due.

On behalf of the Governing Council

Mr Tan Soo Jin

Mr Victor Liew Cheng San

26 March 2015

STATEMENT BY GOVERNING COUNCIL

Report on the financial statements

We have audited the accompanying financial statements of Singapore Institute of Management (the “Institute”) and its subsidiaries (collectively, the “Group”) set out on pages 77 to 141, which comprise the statements of financial position of the Group and Institute as at 31 December 2014, and the statements of comprehensive income and statements of changes in equity of the Group and the Institute and statement of cash flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements

The Institute’s Governing Council (“Governing Council”) is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the Singapore Societies Act Chapter 311 (the “Societies Act”), the Singapore Charities Act, Chapter 37 (the “Charities Act”) and Singapore Financial Reporting Standards and for such internal controls as Governing Council determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

INDEPENDENT AUDITOR’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014TO THE MEMBERS OF SINGAPORE INSTITUTE OF MANAGEMENT



Opinion

In our opinion, the consolidated financial statements of the Group and the statement of financial position, statement of comprehensive income and statement of changes in equity of the Institute are properly drawn up in accordance with the provisions of the Societies Act, the Charities Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Institute as at 31 December 2014 and the results and changes in equity of the Group and the Institute and cash flows of the Group for the year ended on that date.

Other matter

The financial statements of the Group and of the Institute for the year ended 31 December 2013 were audited by another auditor who expressed an unmodified opinion on those statements on 27 March 2014.

Report on other legal and regulatory requirements

In our opinion, the accounting and other records required by the Societies Act and Charities Act to be kept by the Group have been properly kept in accordance with the provisions of the Societies Act and Charities Act.

During the course of our audit, nothing has come to our attention that causes us to believe that during the year the Institute has not complied with the requirements of Regulation 7 of the Charities (Fund-Raising Appeals) Regulations.

Ernst & Young LLPPublic Accountants andChartered AccountantsSingapore26 March 2015

INDEPENDENT AUDITOR’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014TO THE MEMBERS OF SINGAPORE INSTITUTE OF MANAGEMENT

Group InstituteNote 2014 2013 2014 2013

$’000 $’000 $’000 $’000

IncomeCourse, conference and consultancy fees 286,986 282,545 7,044 7,227Membership fees and services 796 805 886 967Government grants 13,639 6,233 4,151 3,463Interest income 3,081 3,128 175 601Rental income 1,651 3,304 1,536 1,465Dividend income 1,410 1,181 35,064 30,207Group corporate services charges to subsidiaries – – 44,729 36,790Other income 3,985 2,210 1,130 909

Total income 311,548 299,406 94,715 81,629

ExpenditureCourse, conference and consultancy expenditure 123,724 122,281 7,559 7,085Membership expenses 2,558 2,000 2,558 2,000Donations to outside parties 134 168 36 83Administrative expenses 4 149,492 133,600 67,973 57,509Other (gains)/losses 5 (130) 1,008 (70) 510

Total expenditure 275,778 259,057 78,056 67,187

Excess of income over expenditure before income tax 35,770 40,349 16,659 14,442Taxation 7 (6,703) (154) – –

Excess of income over expenditure 29,067 40,195 16,659 14,442

Other comprehensive income:Items that will not be reclassified subsequently to

income and expenditure:Funds (utilised)/received (24) 2 – –Items that may be reclassified subsequently to income

and expenditure:Net change in fair value of cash flow hedges (623) (249) – –Net fair value gains on available-for-sale

financial assets 5,854 8,348 2,421 6,412Net fair value changes on available-for-sale financial

assets reclassified to income and expenditure (2,611) (134) (863) –

Other comprehensive income for the year, net of tax 2,596 7,967 1,558 6,412

Total comprehensive income for the year 31,663 48,162 18,217 20,854

STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.




$’000 $’000 $’000 $’000

ASSETSNON-CURRENT ASSETSProperty, plant and equipment 8 328,775 276,794 316,768 261,494Investment properties 9 2,278 2,331 2,278 2,331Investment in subsidiaries 10 – – 2,500 2,500Other receivables 11 1,958 555 – –Available-for-sale investments 13 114,151 88,642 30,693 31,416Held-to-maturity investments 14 18,168 10,650 – –

Total non-current assets 465,330 378,972 352,239 297,741

CURRENT ASSETSOther receivables 11 14,076 12,283 5,958 7,849Prepayments 3,669 4,669 657 748Grant receivables 17 2,353 – 1,951 190Derivatives 12 411 73 5 49Held-to-maturity investments 14 2,000 4,000 – –Cash and bank balances 15 240,968 304,588 13,438 68,785

Total current assets 263,477 325,613 22,009 77,621

TOTAL ASSETS 728,807 704,585 374,248 375,362

LIABILITIES, RESERVES AND FUND BALANCESCURRENT LIABILITIESOther payables 16 50,489 67,002 16,937 34,986Income tax payable 7,189 – – –Course and membership fees received in advance 43,072 42,415 403 380Government grants received in advance 17 420 1,094 – –Deferred capital grants 18 14,812 15,840 14,518 15,823Derivatives 12 2,218 283 – –

Total current liabilities 118,200 126,634 31,858 51,189

NET CURRENT ASSETS 145,277 198,979 (9,849) 26,432

NON-CURRENT LIABILITIESOther payables 16 1,746 238 – –Deferred tax liabilities 19 338 824 – –

Total non-current liabilities 2,084 1,062 – –

TOTAL LIABILITIES 120,284 127,696 31,858 51,189

NET ASSETS 608,523 576,889 342,390 324,173

STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2014


$’000 $’000 $’000 $’000

RESERVES AND FUND BALANCESGeneral fund:

Accumulated surplus 508,123 465,399 329,315 312,656Fair value reserve 24 13,810 11,101 13,075 11,517Hedging reserve 12 (906) (283) – –

521,027 476,217 342,390 324,173

Education fund:Accumulated surplus 76,499 94,223 – –Fair value reserve 24 5,250 4,716 – –Endowment fund 21 1,061 1,016 – –

20 82,810 99,955 – –

College fund 22 4,105 83 – –

Other restricted funds 23 581 634 – –

Total reserves and fund balances 608,523 576,889 342,390 324,173

TOTAL LIABILITIES, RESERVES AND FUND BALANCES 728,807 704,585 374,248 375,362

STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2014




General fund Education fund

Accumulated surplus

Fair value reserve

Hedging reserve Sub-Total

Accumulated surplus

Fair value reserve

Endowment fund Sub-Total College fund

Other restricted

funds Total$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

GroupBalance at 1 January 2013 426,855 5,126 (34) 431,947 93,171 2,477 – 95,648 – 574 528,169

Excess of income over expenditure for the year 38,544 – – 38,544 1,552 – 16 1,568 83 – 40,195Other comprehensive income for the year – 5,975 (249) 5,726 – 2,239 – 2,239 – 2 7,967

Total comprehensive income for the year 38,544 5,975 (249) 44,270 1,552 2,239 16 3,807 83 2 48,162

Grant from a foundation – – – – – – 500 500 – – 500Grant from a foreign government body – – – – – – – – – 58 58Transfer of funds – – – – (500) – 500 – – – –

Balance at 31 December 2013 and 1 January 2014 465,399 11,101 (283) 476,217 94,223 4,716 1,016 99,955 83 634 576,889

Excess of income over expenditure for the year 42,724 – – 42,724 (17,724) – 45 (17,679) 4,022 – 29,067Other comprehensive income for the year – 2,709 (623) 2,086 – 534 – 534 – (24) 2,596

Total comprehensive income for the year 42,724 2,709 (623) 44,810 (17,724) 534 45 (17,145) 4,022 (24) 31,663

Refund of funds – – – – – – – – – (29) (29)

Balance at 31 December 2014 508,123 13,810 (906) 521,027 76,499 5,250 1,061 82,810 4,105 581 608,523

STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014




Accumulated surplus

Fair value reserve Total

$’000 $’000 $’000

InstituteBalance at 1 January 2013 298,214 5,105 303,319

Excess of income over expenditure for the year 14,442 – 14,442

Other comprehensive income – 6,412 6,412

Total comprehensive income for the year 14,442 6,412 20,854

Balance at 31 December 2013 and 1 January 2014 312,656 11,517 324,173

Excess of income over expenditure for the year 16,659 – 16,659

Other comprehensive income – 1,558 1,558

Total comprehensive income for the year 16,659 1,558 18,217

Balance at 31 December 2014 329,315 13,075 342,390

STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014

Note 2014 2013$’000 $’000

Operating activitiesExcess of income over expenditure before income tax 35,770 40,349Adjustments for : Change in fair value of forward foreign exchange contracts 5 974 (29) Change in fair value of fair value through profit or loss investments 5 – (185) Depreciation 8, 9 37,387 31,912 (Gain)/loss on disposal of available-for-sale investments 5 (2,611) 48 Gain on redemption of held-to-maturity investments 5 (113) – Amortisation of premium for held-to-maturity investments 5 62 69 Impairment loss on available-for-sale investments 5 897 – Interest income (3,081) (3,128) Dividend income (1,410) (1,181) Government grants utilised 17, 18 (5,419) (6,233) Endowment fund utilised 21 – (14) Distribution income from investment in REITs (45) (16) Other restricted funds utilised 23 (119) (98) Gain on disposal of property, plant and equipment 5 (90) (19) Government grants received 17, 18 3,717 5,410 Unrealised foreign exchange gain on available-for-sale investments 5 (223) – Unrealised foreign exchange (gain)/loss 5 (61) 11

Operating cash flows before movements in working capital 65,635 66,896

Other receivables and grant receivables (5,331) (3,261)Prepayments 1,000 4,028Other payables (14,996) 25,092Course and membership fees received in advance 657 (1,312)

Net cash flows from operating activities 46,965 91,443

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014




Note 2014 2013$’000 $’000

Investing activitiesProceeds from disposal of property, plant and equipment 139 21Purchase of property, plant and equipment 8 (89,364) (95,399)Proceeds on disposal of available-for-sale investments 19,777 19,846Purchase of available-for-sale investments (39,641) (30,401)Proceeds from disposal of fair value through profit or loss investments – 5,000Proceeds from redemption of held-to-maturity investments 6,113 15,000Purchase of held-to-maturity investments (11,580) –Dividend received 944 1,061Interest received 2,892 3,379(Withdrawal)/placement of fixed deposits (21,314) 8,191

Net cash flows used in investing activities (132,034) (73,302)

Financing activitiesDistribution income from investment in REITs 21 45 30Endowment funds received 21 – 500Other restricted funds received 66 158

Net cash flows from financing activities 111 688

Net (decrease)/increase in cash and cash equivalents (84,958) 18,829Effect of exchange rate changes on cash and cash equivalent 24 (16)Cash and cash equivalents at beginning of year 244,960 226,147

Cash and cash equivalents at end of year 15 160,026 244,960

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014

1. General information

Singapore Institute of Management (the “Institute”) is incorporated in Singapore and is registered with the Commission of Charities as a charity under the Charities Act, Chapter 37.

The registered office and principal place of operations is located at 461 Clementi Road, Singapore 599491.

The principal activities of the Institute comprise the provision of membership services to its members and the conduct of short seminars and customised in-company training. It also functions as a Group Corporate Services Centre providing support services to its subsidiaries.

The principal activities of subsidiaries are disclosed in Note 10 to the financial statements.

2. Summary of significant accounting policies

2.1 Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with Singapore Financial Reporting Standards (FRS).

The financial statements have been prepared in accordance with the historical cost basis except for the revaluation of certain financial instruments, and are drawn up in accordance with the provisions of the Singapore Societies Act, Cap. 311 and Singapore Financial Reporting Standards (“FRS”).

The financial statements are presented in Singapore Dollars (SGD or $) and all values in the tables are rounded to the nearest thousand ($’000), except when otherwise indicated.

2.2 Changes in accounting policies

The accounting policies adopted are consistent with those of the previous financial year except in the current financial year, the Group has adopted all the new and revised standards which are effective for annual financial periods beginning on or after 1 January 2014. The adoption of these standards did not have any effect on the financial performance or position of the Group and the Institute.

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014






2. Summary of significant accounting policies (cont’d)

2.3 Standards issued but not yet effective

The Group has not adopted the following standards that have been issued but not yet effective:

Description

Effective for annual periods beginning on

or after

Amendments to FRS 19 Defined Benefit Plans: Employee Contributions 1 July 2014Improvements to FRSs (January 2014) (a) Amendments to FRS 102 Share Based Payment 1 July 2014(b) Amendments to FRS 103 Business Combinations 1 July 2014(c) Amendments to FRS 108 Operating Segments 1 July 2014(d) Amendments to FRS 113 Fair Value Measurement 1 July 2014(e) Amendments to FRS 16 Property, Plant and Equipment and FRS 38

Intangible Assets1 July 2014

(f) Amendments to FRS 24 Related Party Disclosures 1 July 2014Improvements to FRSs (February 2014) (a) Amendments to FRS 103 Business Combinations 1 July 2014(b) Amendments to FRS 113 Fair Value Measurement 1 July 2014Amendments to FRS 27: Equity Method in Separate Financial Statements 1 January 2016Amendments to FRS 16 and FRS 38: Clarification of Acceptable Methods of

Depreciation and Amortisation1 January 2016

Amendments to FRS 110, FRS 112 and FRS 28: Investment Entities: Applying the Consolidation Exception

1 January 2016

Amendments to FRS 111: Accounting for Acquisitions of Interests in Joint Operations

1 January 2016

Improvements to FRSs (November 2014) 1 January 2016Amendments to FRS 110 & FRS 28: Sale or Contribution of Assets between an

Investor and its Associate or Joint Venture1 January 2016

FRS 115 Revenue from Contracts with Customers 1 January 2017FRS 109 Financial Instruments 1 January 2018

Except for FRS 115 Revenue from Contracts with Customers and FRS 109 Financial Instruments, the Governing Council expects that the adoption of the other standards above will have no material impact on the financial statements in the period of initial application.


2.3 Standards issued but not yet effective (cont’d)

The nature of the impending changes in accounting period on adoption of FRS 115 and FRS 109 are described below:

FRS 115 Revenue from Contracts with Customers

FRS 115 was issued in November 2014 and establishes a new five-step model that will apply to revenue arising from contracts with customers.

Under FRS 115 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in FRS 115 provide a more structured approach to measuring and recognising revenue. The new revenue standard is applicable to all entities and will supersede all current revenue recognition requirements under FRS. Either a full or modified retrospective application is required for annual periods beginning on or after 1 January 2017 with early adoption permitted.

The Group is currently assessing the impact of FRS 115 and plans to adopt the new standard on the required effective date.

FRS 109 Financial Instruments

In December 2014, the ASC issued the final version of FRS 109 Financial Instruments which reflects all phases of the financial instruments project and replaces FRS 39 Financial Instruments: Recognition and Measurement. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. FRS 109 is effective for annual periods beginning on or after 1 January 2018, with early application permitted. Retrospective application is required, but comparative information is not compulsory in the year of adoption.

The adoption of FRS 109 will have an effect on the classification and measurement of the Group’s financial assets, but no impact on the classification and measurement of the Group’s financial liabilities.

2.4 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Institute and its subsidiaries as at the end of the reporting period. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Institute. Consistent accounting policies are applied to like transactions and events in similar circumstances.






2.4 Basis of consolidation (cont’d)

All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full.

Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it:

– de-recognises the assets (including goodwill) and liabilities of the subsidiary at their carrying amounts at the date when control is lost;

– de-recognises the carrying amount of any non-controlling interest;

– de-recognises the cumulative translation differences recorded in equity;

– recognises the fair value of the consideration received;

– recognises the fair value of any investment retained;

– recognises any surplus or deficit in the statement of comprehensive income;

– re-classifies the Group’s share of components previously recognised in other comprehensive income to income and expenditure or retained earnings, as appropriate.

2.5 Functional and foreign currency

The financial statements are presented in Singapore Dollars, which is also the Group’s functional currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.


2.5 Functional and foreign currency (cont’d)

Transactions in foreign currencies are measured in the respective functional currencies of the Group and its subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the end of the reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured.

Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the reporting period are recognised in income and expenditure.

2.6 Property, plant and equipment

All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property, plant and equipment other than freehold land and buildings are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

Leasehold land, building and improvements 2% to 8.57%Office equipment, furniture and fittings (excluding artifacts and paintings) 25%Motor vehicles 20%Computers 33.33%

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

The residual value, useful life and depreciation method are reviewed at each financial year-end, and adjusted prospectively, if appropriate.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on de-recognition of the asset is included in income and expenditure in the year the asset is derecognised.






2.7 Investment properties

Investment properties are properties that are owned by the Group that are held to earn rentals or for capital appreciation, or both, rather than for use in the production or supply of goods or services, or for administrative purposes, or in the ordinary course of business. Properties held under operating leases are classified as investment properties when the definition of an investment property is met.

Investment properties are initially recorded at cost. Subsequent to recognition investment properties are measured at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is computed on a straight-line basis over the estimated useful life of the investment property. The depreciation rate is 2%.

2.8 Subsidiaries

A subsidiary is an investee that is controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

In the Institute’s financial statements, investments in subsidiaries are accounted for at cost less impairment losses.

The consolidated financial statements incorporate the financial statements of the Institute and enterprises controlled by the Institute (its subsidiaries).


2.9 Financial instruments

(a) Financial assets

Initial recognition and measurement

Financial assets are recognised when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial assets at initial recognition.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs.

Subsequent measurement

The subsequent measurement of financial assets depends on their classification as follows:

(i) Loans and receivables

Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in statement of comprehensive income when the loans and receivables are derecognised or impaired, and through the amortisation process.

The Group classifies sundry debtors and deposits as loans and receivables.

(ii) Available-for-sale financial assets

Available-for-sale financial assets include equity and debt securities. Equity investments classified as available-for-sale are those, which are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those which are intended to be held for an indefinite period of time and which may be sold in response to needs for liquidity or in response to changes in the market conditions.






2.9 Financial instruments (cont’d)

(a) Financial assets (cont’d)

Subsequent measurement (cont’d)

(ii) Available-for-sale financial assets (cont’d)

After initial recognition, available-for-sale financial assets are subsequently measured at fair value. Any gains or losses from changes in fair value of the financial assets are recognised in other comprehensive income, except that impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in the income and expenditure. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the income and expenditure as a reclassification adjustment when the financial asset is de-recognised.

Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss.

(iii) Held-to-maturity investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Group has the positive intention and ability to hold the investment to maturity. Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in income and expenditure when the held-to-maturity investments are derecognised or impaired, and through the amortisation process.

De-recognition

A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On de-recognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in income and expenditure.


2.9 Financial instruments (cont’d)

(b) Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs.

Subsequent measurement

After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in income and expenditure when the liabilities are derecognised, and through the amortisation process.

De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in income and expenditure.






2.10 Impairment of financial assets

The Group assesses at each reporting date whether there is any objective evidence that a financial asset is impaired.

(a) Financial assets carried at amortised cost

For financial assets carried at amortised cost, the Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be recognised are not included in a collective assessment of impairment.

If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The impairment loss is recognised in the statement of comprehensive income.

When the asset becomes uncollectible, the carrying amount of impaired financial assets is reduced directly or if an amount was charged to the allowance account, the amounts charged to the allowance account are written off against the carrying value of the financial asset.

To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments.

If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in the income and expenditure.


2.10 Impairment of financial assets (cont’d)

(b) Financial assets carried at cost

If there is objective evidence (such as significant adverse changes in the business environment where the issuer operates, probability of insolvency or significant financial difficulties of the issuer) that an impairment loss on financial assets carried at cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed in subsequent periods.

(c) Available-for-sale financial assets

In the case of equity investments classified as available-for-sale, objective evidence of impairment include (i) significant financial difficulty of the issuer or obligor, (ii) information about significant changes with an adverse effect that have taken place in the technological, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in equity instrument may not be recovered; and (iii) a significant or prolonged decline in the fair value of the investment below its costs.

If an available-for-sale financial asset is impaired, an amount comprising the difference between its acquisition cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss previously recognised in income and expenditure, is transferred from other comprehensive income and recognised in income and expenditure. Reversals of impairment losses in respect of equity instruments are not recognised in income and expenditure; increase in their fair value after impairment are recognised directly in other comprehensive income.

In the case of debt instruments classified as available-for-sale, impairment is assessed based on the same criteria as financial assets carried at amortised cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in income and expenditure. Future interest income continues to be accrued based on the reduced carrying amount of the asset, using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income. If, in a subsequent year, the fair value of a debt instrument increases and the increases can be objectively related to an event occurring after the impairment loss was recognised in income and expenditure, the impairment loss is reversed in income and expenditure.






2.11 Cash and cash equivalents

Cash and cash equivalents comprise of cash at bank and on hand, fixed deposits which are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in values.

2.12 Derivative financial instruments

The Group uses derivative financial instruments such as forward foreign exchange contracts to manage its exposure to foreign exchange rate risk. Further details of derivative financial instruments are disclosed in Note 12 to the financial statements.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in the income and expenditure immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the income and expenditure depends on the nature of the hedge relationship. The Group designates certain derivatives as hedges of highly probable forecast transactions.

2.13 Embedded derivatives

Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at fair value with changes in fair value recognised in the income and expenditure.

2.14 Hedge accounting

The Group designates certain hedging instruments which include forward foreign exchange contracts as cash flow hedges.


2.14 Hedge accounting (cont’d)

At the inception of a hedging relationship, the Group formally designates and documents the hedging relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated.

Hedges which meet the strict criteria for hedge accounting are accounted for as follows:

Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised directly in other comprehensive income in the cash flow hedge reserve, while any ineffective portion is recognised immediately in profit or loss in other expenses.

The Group uses forward currency contracts as hedges of its exposure to foreign currency risk in forecasted transactions and firm commitments. The ineffective portion relating to foreign currency contracts is recognised in finance costs.

Amounts recognised as other comprehensive income are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognised or when a forecast sale occurs. Where the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognised as other comprehensive income are transferred to the initial carrying amount of the non-financial asset or liability.

2.15 Government grants

Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Where the grant relates to an asset, the fair value is recognised as deferred capital grant on the balance sheet and is amortised to statement of comprehensive income over the expected useful life of the relevant asset by equal annual instalments.

Where loans or similar assistance are provided by governments or related institutions with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as additional government grant.






2.16 Leases

(a) As lessee

Finance leases which transfer to the Group substantially all the risks and rewards incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Any initial direct costs are also added to the amount capitalised. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to the income and expenditure. Contingent rents, if any, are charged as expenses in the periods in which they are incurred.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.

Operating lease payments are recognised as an expense in income and expenditure on a straight-line basis over the lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight-line basis.

(b) As lessor

Leases where the Group retains substantially all the risks and rewards of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same bases as rental income. The accounting policy for rental income is set out in Note 2.17(g). Contingent rents are recognised as revenue in the period in which they are earned.

2.17 Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.

(a) Course, conference and consultancy fees

Course, conference and consultancy fees are recognised over the duration of the programs.


2.17 Revenue (cont’d)

(b) Membership fees

Membership fees are recognised on a straight line basis over the membership term.

(c) Rendering of services

Revenue from the rendering of services that are of a short duration is recognised when the services are completed.

(d) Non-endowed donations

Non-endowed donations are recognised in the financial year they are received.

(e) Interest income

Interest income is recognised on an accrual basis, by reference to the principal outstanding and at the effective interest rate applicable.

(f) Dividend income

Dividend income is recognised when the shareholders’ rights to receive payment have been established.

(g) Rental income

Rental income is recognised on a straight-line basis over the term of the lease.

2.18 Education fund

The SIM University Education Fund (“Education Fund”) is conferred the Institute of Public Character status. Accordingly, all donations made to the Education Fund will be tax deductible for the donors.

2.19 Endowment fund

Grants and donations from external sources are taken directly to the statement of funds and reserves in the year in which such grants and donations are received. Income and expenditure arising from the management of the Endowment Fund are taken to the Statement of Comprehensive Income of the Endowment Fund.






2.20 Other restricted funds

Sponsorship-Awards fund and other funds comprising donations and sponsorships, which are kept intact as capital, are directly taken to the fund in the year in which such donations and sponsorships are received for the purpose of awarding of scholarships, medals, prizes to deserving students, developing standards in e-learning and development of program lectures and research for project proof of concept.

Income and expenditure arising from the management of the fund is taken directly to Sponsorship Awards fund and other funds account. Income designated to fund specific activities or programmes will be transferred from the fund to income and expenditure to match the designated expenditure. Any shortfall of income from the fund for a particular year will be taken directly to income and expenditure.

2.21 Employee benefits

(a) Defined contribution plan

The Group participates in the national pension schemes as defined by the laws of the countries in which it has operations. In particular, the Group makes contributions to the Central Provident Fund (“CPF”) scheme in Singapore, a defined contribution pension scheme. Contributions to defined contribution pension schemes are recognised as an expense in the period in which the related service is performed.

(b) Retirement benefit costs

Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments to defined contribution plans where the Group’s and Institute’s obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan.

(c) Employee leave entitlement

Employee entitlements to annual leave are recognised as a liability when they accrue to employees. The estimated liability for leave is recognised for services rendered by employees up to the end of the reporting period.


2.22 Taxes

(a) Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the end of the reporting period, where the Group operates and generates taxable income.

Current income taxes are recognised in income and expenditure except to the extent that the tax relates to items recognised outside income and expenditure, either in other comprehensive income or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(b) Deferred tax

Deferred tax is provided using the liability method on temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognised for all temporary differences, except:

– Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable income and expenditure; and

– In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.






2.22 Taxes (cont’d)

(b) Deferred tax (cont’d)

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised except:

– Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable income and expenditure; and

– In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of each reporting period.

Deferred tax relating to items recognised outside income and expenditure is recognised outside income and expenditure. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition.


2.22 Taxes (cont’d)

(c) Sales tax

Revenues, expenses and assets are recognised net of the amount of sales tax except:

– Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

– Receivables and payables that are stated with the amount of sales tax included.

3. Significant accounting judgements and estimates

The preparation of the Group’s consolidated financial statements requires the Governing Council to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in the future periods.

3.1 Judgements made in applying accounting policies

In the process of applying the Group’s accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the consolidated financial statements:

Impairment of financial assets

The Group follows the guidance of FRS 39 in determining when a financial asset is impaired. This assessment requires significant judgement. The Group evaluates, among other factors, the duration and extent to which the fair value of a financial asset is less than its cost; and the financial health of and near-term business outlook for the investment or financial asset, including factors such as industry and sector performance and financing cash flow.





3. Significant accounting judgements and estimates (cont’d)

3.2 Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period are discussed below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Fair value of financial instruments

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These techniques involve uncertainties and require assumptions and judgements regarding prepayments, credit risks and discount rates. Changes in these assumptions will significantly affect the estimated value of the financial instruments. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at the end of the reporting period. Quoted market prices or dealer quotes for similar instruments are some of the common techniques used to calculate the fair value of these instruments.

The carrying amounts of these instruments are disclosed in Notes 12, 13 and 14.

4. Administrative expenses

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Staff costs (Note 6) 86,700 79,612 24,564 22,987Depreciation of property, plant and equipment

(Note 8) 37,334 31,859 28,856 21,452Depreciation of investment properties (Note 9) 53 53 53 53

Maintenance 12,950 10,529 7,351 6,398Utilities and telephone 3,593 3,331 3,519 3,239Professional fees 3,991 3,970 1,258 1,467Others 4,871 4,246 2,372 1,913

149,492 133,600 67,973 57,509

5. Other gains and losses

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Gain on disposal of property, plant and equipment (90) (19) (9) (19)

Realised foreign exchange (gain)/loss (3) (4) (5) (4)

Unrealised foreign exchange (gain)/loss (61) 11 1 (2)

Change in fair value of forward foreign exchange contracts not used in hedging purposes 974 (29) 43 (29)

Realised exchange loss on forward foreign exchange contracts 1,038 1,117 763 749

Unrealised foreign exchange gain on available-for-sale investments (223) – – –

Change in fair value of fair value through profit or loss investments – (185) – (185)

Impairment loss on available-for sale investments 897 – – –

Amortisation of premium for held-to-maturity investments 62 69 – –

(Gain)/loss on disposal of available-for-sale investments (2,611) 48 (863) –

(Gain) on redemption of held-to-maturity investments (113) – – –

(130) 1,008 (70) 510

6. Staff costs

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Wages and salaries 75,031 68,724 20,682 19,383Defined contribution plans 8,545 7,867 2,547 2,423Other staff benefits 3,124 3,021 1,335 1,181

86,700 79,612 24,564 22,987





7. Taxation

With effect from Year of Assessment 2008, the Institute and one subsidiary, SIM University, will, as registered charities, enjoy automatic income tax exemption without having the need to meet the 80% spending rule in respect of its annual receipts.

The major components of income tax expense for the years ended 31 December 2014 and 2013 are:

Group2014 2013$’000 $’000

Income tax – current 7,189 –Deferred tax – origination and reversal of temporary differences (Note 19) (486) 154

6,703 154

Relationship between tax expense and excess of income over expenditure before tax:

Group2014 2013$’000 $’000

Excess of income over expenditure before tax 35,735 40,349

Income tax expense at statutory rate 17% (2013: 17%) 6,075 6,859Adjustments:Charity loss/(income) not subject to tax 865 (2,141)Expenses not deductible for tax purposes 29 2,886Tax benefits (211) (229)Effect of partial tax relief (9) (7,206)Others (46) (15)

6,703 154

8. Property, plant and equipment

Leasehold land, building and

improvements

Office equipment,

furniture and fittings

Motor vehicles Computers

Construction in-progress Total

$’000 $’000 $’000 $’000 $’000 $’000

Group

Cost:

At 1 January 2013 242,521 34,617 749 72,907 26,433 377,227Additions 11,774 4,431 – 11,944 65,358 93,507Disposals – (180) (56) (741) – (977)Reclassification 670 (215) – 98 (553) –

At 31 December 2013 and 1 January 2014 254,965 38,653 693 84,208 91,238 469,757

Additions 78,058 4,825 – 6,481 – 89,364Disposals (12,228) (8,116) (219) (1,224) – (21,787)Reclassification 84,492 3,171 – 3,575 (91,238) –

At 31 December 2014 405,287 38,533 474 93,040 – 537,334

Accumulated depreciationAt 1 January 2013 82,405 26,327 381 52,966 – 162,079Depreciation for the year 13,705 4,595 123 13,436 – 31,859Disposals – (180) (55) (740) – (975)

At 31 December 2013 and 1 January 2014 96,110 30,742 449 65,662 – 192,963

Depreciation for the year 21,220 4,719 120 11,275 – 37,334Disposals (12,228) (8,092) (215) (1,203) – (21,738)

At 31 December 2014 105,102 27,369 354 75,734 – 208,559

Net carrying amount:At 31 December 2013 158,855 7,911 244 18,546 91,238 276,794

At 31 December 2014 300,185 11,164 120 17,306 – 328,775





8. Property, plant and equipment (cont’d)

Leasehold land, building and

improvements

Office equipment,

furniture and fittings

Motor vehicles Computers

Construction in–progress Total

$’000 $’000 $’000 $’000 $’000 $’000

Institute

Cost:At 1 January 2013 242,521 21,887 132 25,520 26,433 316,493Additions 11,774 4,387 – 2,730 65,358 84,249Disposals – (180) (56) (332) – (568)Reclassification 670 (215) – 98 (553) –

At 31 December 2013 and 1 January 2014 254,965 25,879 76 28,016 91,238 400,174

Additions 78,058 3,832 – 2,259 – 84,149Disposals (12,228) (202) (32) (477) – (12,939)Reclassification 84,492 3,171 – 3,575 (91,238) –

At 31 December 2014 405,287 32,680 44 33,373 – 471,384

Accumulated depreciation:At 1 January 2013 82,405 14,693 131 20,566 – 117,795Depreciation for the year 13,705 4,045 * 3,702 – 21,452Disposals – (180) (55) (332) – (567)

At 31 December 2013 and 1 January 2014 96,110 18,558 76 23,936 – 138,680

Depreciation for the year 21,220 4,233 – 3,403 – 28,856Disposals (12,228) (202) (32) (458) – (12,920)

At 31 December 2014 105,102 22,589 44 26,881 – 154,616

Net carrying amount:At 31 December 2013 158,855 7,321 – 4,080 91,238 261,494

At 31 December 2014 300,185 10,091 – 6,492 – 316,768

* denotes less than $1,000

9. Investment properties

Group and Institute2014 2013$’000 $’000

Cost:At 1 January and 31 December 3,965 3,965

Accumulated depreciation:At 1 January 1,634 1,581Depreciation charge for the year 53 53

At 31 December 1,687 1,634

Net carrying amount 2,278 2,331

Statement of comprehensive incomeRental income from investment property 369 549Direct operating expenses (including repairs and maintenance) arising from

revenue generating properties 227 225

The Group has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

Valuation of investment properties

The fair value of the investment properties at 31 December 2014 approximates $29,500,000 (2013: $27,500,000). The independent valuation was performed by an independent professional valuation firm. Details of valuation techniques and inputs used are disclosed in Note 27.





10. Investment in subsidiaries

Institute2014 2013$’000 $’000

Unquoted equity shares, at cost 2,500 2,500

Details of the Institute’s subsidiaries at 31 December 2014 are as follows:

Name of subsidiary

Country of incorporation/

registration and operation Principal activities

Proportion (%) of ownership interest and

voting power2014 2013

% %

Held by the InstituteSingapore Institute of

Management Pte. Ltd.Singapore Engaged in higher and continuing

education100 100

SIM University (a) Singapore Engaged in the advancement of education and dissemination of knowledge, the promotion of research and the conferring and awarding of degrees, diplomas and certificates

100 100

(a) SIM University is incorporated as a company limited by guarantee on April 14, 2005. SIM University’s constitution states that the Institute’s Governing Council is empowered to appoint or remove any member of SIM University’s Board of Trustees and in the event of winding up or dissolution of SIM University, after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the members of SIM University, but shall be given or transferred to the Institute. Accordingly, the Institute is deemed to have control over SIM University.

11. Other receivables

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Current:Amount due from subsidiaries – – 4,288 5,567Course fee receivables 3,297 1,930 1,042 754Staff loans 4 17 1 5Interest receivable 795 605 1 41Due from Ministry of Education (“MOE”) 7,792 7,037 – –Deposits 133 53 80 30Others 2,055 2,641 546 1,452

14,076 12,283 5,958 7,849Non-current:Tuition fee loans and study loans receivable 1,958 555 – –

Total other receivables 16,034 12,838 5,958 7,849Add: Cash and bank balances 240,968 304,588 13,438 68,785Add: Grant receivables – – 1,951 190

Total loans and receivables 257,002 317,426 21,347 76,824

Amount due from MOE relates to mainly tuition fee subsidies.

Tuition fee loans and study loans receivable from students are interest-free during the course of study and repayable within 2 years (for tuition fee loans) and 6 years (for study loans) after graduation or upon graduates securing employment, whichever is earlier. The loans are funded by MOE and the repayments from students will be collected and returned to MOE.

Course fee receivables that are past due but not impaired

Course fee receivables are non-interest bearing and are generally on 30 days’ terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition.

The carrying amounts of other receivables approximate their fair values due to the short term nature of these receivables.

Course fee receivables that are past due but not impaired

The Group and the Institute have course fee receivables amounting to $1,524,000 and $473,000 (2013: $1,155,000 and $363,000) that are past due at the end of the reporting period but not impaired. These receivables are unsecured and the analysis of their aging at the end of the reporting period is as follows:





11. Other receivables (cont’d)

Course fee receivables that are past due but not impaired (cont’d)

The table below is an analysis of the Group’s and the Institute’s course fee receivables as at 31 December:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Not past due and not impaired 1,732 775 569 391Past due but not impaired 1,524 1,155 473 363Past due and impaired 41 – – –

3,297 1,930 1,042 754

Aging of course fee receivables which are past due but not impaired:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Less than 90 days 388 867 319 242More than 90 days 1,136 288 154 121

1,524 1,155 473 363

11. Other receivables (cont’d)

Receivables that are impaired

The Group’s and the Institute’s course fee receivables that are impaired at the end of the reporting period and the movement of the allowance accounts used to record the impairment are as follows:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Collectively Impaired:Course fee receivables – nominal amounts 3,297 1,930 1,042 754Less: Allowance for impairment (41) – – –

3,256 1,930 1,042 754

Movement in allowance accounts:At 1 January – – – –Charge for the year (41) – – –

At 31 December (41) – – –

The Group’s other receivables that are not denominated in the functional currencies of the respective entities are as follows:

Group2014 2013$’000 $’000

Australian dollar – 5Sterling pound – 24United States dollar 792 25





12. Derivatives

2014 2013Contract/ Notional amount Assets Liabilities

Contract/ Notional amount Assets Liabilities

$’000 $’000 $’000 $’000 $’000 $’000

GroupForward foreign exchange

contracts– Buy GBP/Sell SGD 1,993 – 38 – – –– Buy USD/Sell SGD(a) 18,396 – 871 – – –– Buy USD/Sell SGD(a) 8,988 403 – 8,252 – 32– Buy AUD/Sell SGD(a) 24,300 – 1,309 16,894 – 251– Buy SGD/Sell USD 26,360 8 – 32,298 73 –

411 2,218 73 283

2014 2013Contract/ Notional amount Assets Liabilities

Contract/ Notional amount Assets Liabilities

$’000 $’000 $’000 $’000 $’000 $’000

InstituteForward foreign exchange

contracts– Buy SGD/Sell USD 18,307 5 – 21,640 49 –

(a) These forward foreign exchange contracts are designated as hedging instruments in cash flow hedges.

Foreign currency risk

Forward foreign exchange contracts designated as hedging instruments in cash flow hedges of forecast payments are measured at fair value through other comprehensive income. These forecast transactions are highly probable.

While the Group also enter into other forward foreign exchange contracts with the intention to reduce the foreign exchange risk of expected payments, these other contracts are not designated in hedge relationships and are measured at fair value through profit and loss.

The forward foreign exchange contract balances vary with the level of expected foreign currency payments and changes in foreign exchange forward rates.

12. Derivatives (cont’d)

Foreign currency risk (cont’d)

Forward foreign exchange contracts entered into by the Group and Institute are used to hedge foreign currency risk arising from the Group and Institute investments denominated in USD and future payments denominated in Pound Sterling (GBP). The forward foreign exchange contract matures in June 2015 and December 2015 respectively.

Cash flow hedges

The terms of the forward foreign exchange contract have been negotiated for the expected highly probable forecast transactions. As a result, no hedge ineffectiveness arises requiring recognition through profit or loss.

The cash flow hedges of the expected future payments in January 2015 were assessed to be highly effective and a net unrealised loss of $906,000 is included in other comprehensive income.

At the end of December 2013, the cash flow hedges of the expected future payments in 2014 were assessed to be highly effective and an unrealised loss of $283,000 was included in other comprehensive income in respect of these contracts.

Hedging reserve

The cash flow hedge reserve contains the effective portion of the cash flow hedge relationships incurred as at the reporting date. $906,000 (2013: $283,000) are made up of the net movements in cash flow hedges and the effective portion of the forward commodity contract, net of tax.





13. Available-for-sale investments

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Quoted investment funds 77,322 70,538 30,693 31,416Quoted debt securities 16,604 –Quoted preference shares 19,143 18,104 – –Quoted real estate investment trusts (REITs) 1,082 – – –

114,151 88,642 30,693 31,416

The investments above offer the Group the opportunity for return through dividend income, interest income and fair value gains. They have no fixed maturity or coupon rate. The fair values of the quoted funds are determined as the quoted fund net asset values provided by the fund managers and banks at the last market day of the financial year.

During the financial year, the Group recognised an impairment loss of $897,000 (2013: nil) on one of the quoted funds managed by fund managers as there was “significant” decline in the fair value of the investment below its cost. The Group treats “significant” generally as more than 30%.

The fair values of the quoted preference shares are determined based on the last traded price on the Singapore Stock Exchange at the end of the reporting period.

The Group’s and Institute’s available-for-sale investments that are not denominated in the functional currency of the respective entities are as follows:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

United States dollar 63,231 41,492 30,693 28,503

14. Held-to maturity investments

Group2014 2013$’000 $’000

Unquoted debt securities at amortised cost:Current 2,000 4,000Non-current 18,168 10,650

20,168 14,650

The unquoted debt securities comprise bonds issued by financial institutions and public listed companies. As at 31 December 2014, the unquoted debt securities have nominal values amounting to $20.2 million (2013: $14.6 million) with coupon rates ranging from 3.50% to 4.88% (2013: 3.83% to 4.88%) per annum and maturity dates ranging from February 2015 to May 2026 (2013: January 2014 to August 2017) . The average effective interest rate of the unquoted debt securities ranges from 1.43% to 2.47% (2013: 1.06% to 4.88%) per annum.

All the bonds carry a fixed coupon rate. The fair value of the securities are provided by banks employing generally market accepted valuation parameters and techniques.

15. Cash and bank balances

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Cash held by fund manager 1,801 – – –Cash and bank balances 42,345 31,326 4,233 4,682Fixed deposits 196,822 273,262 9,205 64,103

240,968 304,588 13,438 68,785

The carrying amounts of these assets approximate their fair values.

Fixed deposits earn interest at average rates ranging from 0.22% to 1.80% (2013: 0.02% to 2.40%) per annum and are for a tenure of approximately 7 days to 12 months (2013: 4 days to 12 months).





15. Cash and bank balances (cont’d)

Cash and cash equivalents comprise of cash on hand and at bank and short-term fixed deposits with maturity period of up to 3 months.

For the purpose of presenting the statement of cash flows, cash and cash equivalents comprise the following:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Cash held by fund manager 1,801 – – –Cash on hand and at bank 42,345 31,326 4,233 4,682Fixed deposits (with maturity period of up to

3 months) 115,880 213,634 8,204 59,048

160,026 244,960 12,437 63,730

The Group’s and Institute’s cash and bank balances that are not denominated in the functional currencies of the respective entities are as follows:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Australian dollar 415 1,195 – –Sterling pound 207 94 – –United States dollar 826 690 94 94

16. Other payables

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Current:Deposits 675 399 614 230 Provision for settlement costs – 8,269 – 8,269Accruals 49,814 58,334 16,323 26,487

50,489 67,002 16,937 34,986Non-current:Tuition fee loans and study loans payables

to MOE 1,746 238 – –

52,235 67,240 16,937 34,986

Other payables are non-interest bearing and normally settled on 30 to 90 days’ term.

Tuition fee loans and study loans payable to MOE relates to the funds from MOE for purpose of providing loans to students, collection of loan repayment from students and refundable to MOE. The amount due to MOE also includes any unutilised funds refundable to the MOE.

The Group’s and Institute’s sundry creditors that are not denominated in the functional currencies of the respective entities are as follows:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Australian dollar 566 248 – –Sterling pound 569 421 9 –United States dollar 27 131 9 57





17. Grant receivables/(Government grants received in advance)

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Balance at 1 January (1,094) (629) 190 (229)Funds received (3,422) (5,390) (1,085) (1,739)Utilised 4,096 4,925 2,846 2,158

Balance at 31 December (420) (1,094) 1,951 190

Grant receivables relates to grants from MOE for the operating and capital spending of SIM University.

2014 2013$’000 $’000

Capitation grant 1,469 –Top-up grant 750 –Infrastructure grant 89 –Collaboration grant 45 –

2,353 –

18. Deferred capital grants

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Balance at 1 January 15,840 17,128 15,823 17,128Funds received 295 20 – –Utilised (1,323) (1,308) (1,305) (1,305)

Balance at 31 December 14,812 15,840 14,518 15,823

19. Deferred tax liabilities

Group2014 2013$’000 $’000

At 1 January 824 670Charge to income and expenditure (Note 7) (486) 154

At 31 December 338 824

The balances in the account comprise the tax effects of:Accelerated tax depreciation 338 824

20. Education fund

The SIM University Education Fund is set up to receive fund from public and related entity for the purpose of establish, operate, maintain and promote UniSIM as a private university. The SIM University Education Fund has been conferred the Institution of a Public Character status.

The following represents the financial position of SIM University Education Fund:

Group2014 2013$’000 $’000

At 1 January 99,955 95,648Total comprehensive income (17,145) 3,807Grant from a foundation – 500

At 31 December 82,810 99,955

Represented by: Current assetsCash and bank balances 37,911 69,563Other receivables 418 300Prepayments 276 231Forward foreign exchange contracts 2 24Held-to-maturity investments – 4,000

38,607 74,118





20. Education fund (cont’d)

Group2014 2013$’000 $’000

Non-current assetsAvailable-for-sale investments 33,993 18,827Held-to-maturity investments 11,092 6,624Plant and equipment 2,870 3,779

47,955 29,230

Less: current liabilityOther payables 3,400 3,393Derivatives 352 –

Total net assets 82,810 99,955

21. Endowment fund

Endowment fund comprises the Social Resilience Enhancement Fund which is set up on 11 October 2013 to receive funds for the purpose of awarding of scholarships and sponsoring faculty programme and prizes to students.

Group2014 2013$’000 $’000

Social Resilience EnhancementBalance at 1 January 1,016 –Fund received from a foundation – 500Earned income received 45 30Transfer from Education fund – 500Utilised – (14)

Balance at 31 December 1,061 1,016

22. College fund

The SIM University College Fund relates to grants received from MOE for the purpose of establish, operate and maintain UniSIM full-time programme.

Group2014 2013$’000 $’000

College FundBalance at 1 January 83 –Total comprehensive income 4,022 83

Balance at 31 December 4,105 83

23. Other restricted funds

Name of fund Purpose

Research and development fund For the purpose of providing scholarship to students and to fund research activities.

Sponsorship awards fund Donations and sponsorships received for the purpose of awarding of scholarships, medals, prizes to deserving students.

Other funds – Spring Singapore and Economic Development Board

Funds received for the purpose of course development for Biomedical Sciences Proof of Concept Scheme and Executive Master in Technology Entrepreneurship and Rotman Design Work.

Other funds – Ministry of Culture, Republic of China

Funds received for the purpose of planning, organising, and executing events and activities that foster cultural exchanges and promote Taiwan’s culture in Singapore.





23. Other restricted funds (cont’d)

Research and

develop-ment fund

Sponsor-ship awards

fund Other funds Total$’000 $’000 $’000 $’000

Balance at 1 January 2013 403 142 29 574Received/receivable during the year 100 – 58 158Utilised during the year (96) (1) (1) (98)

Balance at 31 December 2013 407 141 86 634Received/receivable during the year 95 – – 95Utilised during the year (68) – (51) (119)Refunded during the year – – (29) (29)

Balance at 31 December 2014 434 141 6 581

Represented by:Cash and bank balances:At 31 December 2014 434 141 6 581

At 31 December 2013 407 141 86 634

24. Fair value reserve

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

At 1 January 15,817 7,603 11,517 5,105Reclassification to income and expenditure

from equity on disposal of available-for-sale investments (2,611) (134) (863) –

Impairment loss on available-for-sale investments 897 – – –

Arising during the year 4,957 8,348 2,421 6,412

At 31 December 19,060 15,817 13,075 11,517

The fair value reserve relates to revaluation of the available-for-sale investments. As certain of these investments are funded by the SIM University Education Fund, the fair value reserve which forms part of the SIM University Education Fund amounted to a gain of $5,250,000 (2013: gain of $4,716,000).

25. Related party transactions

Compensation of key management personnel

The remuneration of key management during the year was as follows:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Short-term benefits 12,854 11,818 3,192 3,079Contributions to Central Provident Fund 552 505 146 150

13,406 12,323 3,338 3,229

The remuneration of key management is determined by the Compensation and Establishment Committee of the Institute having regard to the performance of individuals and market trends.

Number of key management in remuneration bands for the Group is shown below. Key management personnel comprises chief executive officers, directors and deans. Trustees of Singapore Institute of Management and SIM University are not remunerated for their board services.

2014 2013

$950,001 to $1,000,000 – 1$900,001 to $950,000 1 –$600,001 to $650,000 1 –$550,001 to $600,000 – 1$500,001 to $550,000 2 2$450,001 to $500,000 – –$400,001 to $450,000 1 1$350,001 to $400,000 1 –$300,001 to $350,000 3 3$250,001 to $300,000 10 8$200,001 to $250,000 13 14$150,001 to $200,000 14 13$100,001 to $150,000 4 4$100,000 and below 7 7

57 54





26. Operating lease and commitments

(a) Capital commitments

Capital expenditure contracted for as at the end of the reporting period but not recognised in the financial statements are as follows:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Capital commitments in respect of property, plant and equipment 24,216 92,440 22,550 89,871

(b) Operating lease commitments – As lessee

The Group and Institute have entered into commercial leases on certain office equipment. These leases have an average tenure of between two and five years. The Group and Institute are restricted from subleasing the leased equipment to third parties.

Minimum lease payments recognised as an expense in income and expenditure for the financial year ended 31 December 2014 of the Group and Institute amounted to $3,269,000 and $101,000 (2013: $7,565,000 and $67,000) respectively.

Future minimum rental payable under non-cancellable operating leases at the end of the reporting period are as follows:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Not later than one year 3,275 3,814 86 96Later than one year but not later than

five years 1,145 3,951 153 231

Total minimum lease payments 4,420 7,765 239 327

26. Operating lease and commitments (cont’d)

(c) Operating lease commitments – As lessors

The Group and the Institute have entered into commercial property leases on its premises. These non-cancellable leases have remaining lease terms of between 1 month and 3 years. All leases include a clause to enable upward revision of the rental charge on an annual basis based on prevailing market conditions.

Minimum lease payments recognised as rental income in income and expenditure for the financial year ended 31 December 2014 of the Group and Institute amounted to $1,651,000 and $1,536,000 (2013: $3,304,000 and $1,465,000) respectively.

Future minimum rental receivable under non-cancellable operating leases at the end of the reporting period are as follows

Group and Institute2014 2013$’000 $’000

Not later than one year 1,705 1,392Later than one year but not later than five years 2,338 2,188

4,043 3,580





27. Fair value of financial assets and liabilities

(a) Fair value hierarchy

The Group categorises fair value measurements using a fair value hierarchy that is dependent on the valuation inputs used as follows:

Level 1 – Quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at the measurement date,

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and

Level 3 – Unobservable inputs for the asset or liability.

Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

(b) Assets and liabilities measured at fair value

The following table shows an analysis of financial instruments that carried at fair value by the above hierarchy:

27. Fair value of assets and liabilities (cont’d)

(b) Assets and liabilities measured at fair value (cont’d)

Fair value measurements at the end of the reporting period using

Level 1 Level 2 Level 3 TotalNote $’000 $’000 $’000 $’000

Group2014Assets measured at fair valueFinancial assets:DerivativesForward foreign exchange contracts 12 – 411 – 411Available-for-sale investments 13Quoted investment funds – 77,322 – 77,322Quoted debt securities – 16,604 – 16,604Quoted preference shares – 19,143 19,143Quoted real estate investment trusts

(REITs) 1,082 – – 1,082

Financial assets as at 31 December 2014 1,082 113,480 – 141,562

Liabilities measured at fair valueFinancial liabilities:DerivativesForward foreign exchange contracts 12 – 2,218 – 2,218

Financial liabilities as at 31 December 2014 – 2,218 – 2,218

2013Assets measured at fair valueFinancial assets:DerivativesForward foreign exchange contracts 12 – 73 – 73Available-for-sale investments 13Quoted funds managed by fund manager – 70,538 – 70,538Quoted preference shares – 18,104 – 18,104

Financial assets as at 31 December 2013 – 88,715 – 88,715









Group2013Liabilities measured at fair valueFinancial liabilitiesDerivativesForward foreign exchange contracts 12 – 283 – 283

Financial liabilities as at 31 December 2013 – 283 – 283



Institute2014Assets measured at fair valueFinancial assets:DerivativesForward foreign exchange contracts 12 – 5 – 5Available-for-sale investments 13Quoted investment funds – 30,693 – 30,693


2013Assets measured at fair valueFinancial assets:DerivativesForward foreign exchange contracts 12 – 49 – 49Available-for-sale investments 13Quoted investment funds – 31,416 – 31,416




The following is a description of the valuation techniques and inputs used in the fair value measurement for assets and liabilities:

Forward foreign exchange contracts

Derivatives are valued using a valuation technique with market observable inputs. The most frequently applied valuation technique includes a forward pricing model, using present value calculations. The model incorporates various inputs including the foreign exchange spot and forward rates and interest rate curves. There were no credit value or debit value adjustments made in the determination of fair value of these securities.

Quoted investment funds

The Group and the Institute invests in managed funds which are not in an active market. The Group and the Institute investment manager considers the valuation techniques and inputs used in valuing these funds as part of its due diligence prior to investing, to ensure they are reasonable and appropriate and therefore the NAV of these funds may be used as a input into measuring their fair value. The management used the NAV per share as an appropriate basis for the market value of the said funds as this will be the redemption price to be received in case the Group and the Institute redeem. The Group and the Institute classify these funds as Level 2.

Quoted debt securities and preference shares

In the absence of a quoted price in an active market, they are valued using observable inputs such as recently executed transaction prices in securities of the issuer or comparable issuers and yield curves. Adjustments are made to the valuations when necessary to recognise differences in the instrument’s terms. To the extent that the significant inputs are observable, the Group and the Institute categorise these investments as Level 2.

Quoted real estate investment trusts (REITs)

The fair value of quoted real estate investment trust (REITs) are determined by direct reference to their bid and ask price quotation in an active market at the end of the reporting period.






(c) Assets and liabilities not carried at fair value but for which fair value is disclosed

The following table shows an analysis of the Group’s assets and liabilities not measured at fair value but for which fair value is disclosed by the above hierarchy:

Group and InstituteLevel 1 Level 2 Level 3 Total Carrying amount

2014 Note $’000 $’000 $’000 $’000 $’000

AssetsInvestment properties 9 – 29,500 – 29,500 2,278

2013

AssetsInvestment properties 9 – 27,500 – 27,500 2,331

Determination of fair valueThe valuation of commercial investment properties are based on comparable market transactions that consider sales of similar properties that have been transacted in the open market.

(d) Financial instruments whose carrying amount approximates fair value

The carrying amounts of cash and bank balances, other receivables and other payables, based on their notional amounts, reasonably approximate their fair values because they are short-term in nature.

28. Financial risk management objectives and policies

The Group is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risks include foreign currency risk, credit risk, liquidity risk and interest risk.

The Governing Council reviews and agrees policies and procedures for the management of these risks, which are executed by the Head of Treasury. The Audit Committee provides independent oversight to the effectiveness of the risk management process. It is, and has been throughout the current and previous financial year, the Group’s policy that no trading in derivatives for speculative purposes shall be undertaken.

The following sections provide details regarding the Group’s exposure to the above-mentioned financial risks and the objectives, policies and processes for the management of these risks.

28. Financial risk management objectives and policies (cont’d)

(a) Foreign exchange risk

The Group’s foreign currency exposures arise mainly from the exchange rate movements of the Australian dollar, United States dollar and Sterling pound against the Singapore dollar.

At the end of the reporting period, the carrying amounts of monetary assets and liabilities denominated in currencies other than the Group’s and Institute’s functional currency are as follows:

GroupAssets Liabilities

2014 2013 2014 2013$’000 $’000 $’000 $’000

Australian dollar 415 1,195 566 248United States dollar 64,849 42,182 27 131Sterling pound 207 94 569 421

InstituteAssets Liabilities

2014 2013 2014 2013$’000 $’000 $’000 $’000

United States dollar 30,787 28,597 9 57Sterling pound – – 9 –

Entities in the Group use forward foreign exchange contracts to hedge their exposure to foreign currency risk in the local reporting currency. The Treasury Department is responsible for hedging the net position in each borrowing currency.

Further details of the forward foreign exchange contracts are found in Note 12 to the financial statements.

Foreign currency sensitivity

The sensitivity rate used when reporting foreign currency risk is 10%, which is the change in foreign exchange rate that the Governing Council deems reasonably possible which will affect outstanding foreign currency denominated monetary items at period end.






(a) Foreign exchange risk (cont’d)

If the relevant foreign currency strengthens by 10% against the functional currency of each group entity, without considering the effect of the derivative financial instruments, income and expenditure will increase by:

Group InstituteIncome and expenditure Income and expenditure

2014 2013 2014 2013$’000 $’000 $’000 $’000

Australian dollar (15) 95 – –United States dollar 6,482 4,205 3,078 2,854Sterling pound (36) (33) (1) –

If the relevant foreign currency weakens by 10% against the functional currency of each group entity, there will be an equal and opposite impact on income and expenditure.

In the Governing Council’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk as the year end exposure does not reflect the exposure during the year.

(b) Interest rate risk

The Group is exposed to interest rate risk through the impact of rate changes on interest bearing assets. All financial assets and liabilities at year end bear no interest except for cash and fixed deposits and held-to-maturity financial investments. The average interest rate on held-to maturity financial asset is disclosed in Note 14.

Interest rate sensitivity analysis

The sensitivity analysis has been determined based on the exposure to interest rates for cash and bank balances at the end of the reporting period and the stipulated change taking place at the beginning of the respective financial year. A 100 basis point increase or decrease represents management’s assessment of the possible change in interest rate.

If interest rates had been 100 basis points higher/lower with all the other variables held constant, the Group’s and Institute’s net surplus would increase/decrease by approximately $2.4 million and $0.1 million respectively (2013 : $3.0 million and $0.7 million respectively).


(c) Credit risk

The Group and Institute are not exposed to significant credit risk as most of its fees are received in advance. In 2014 and 2013, the Group’s other receivables comprise mainly of grant receivable from Ministry of Education.

Cash and cash equivalents are held with reputable financial institutions.

(d) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities.

The Group maintains sufficient cash and cash equivalents, and internally generated cash flows to finance its activities.

The Group’s and Institute’s derivative financial instruments comprise foreign exchange forward contracts with net mark-to-market loss of $936,000 (2013: net mark-to-market loss of $210,000) and net mark-to market gain of $5,000 (2013: net mark-to market gain of $49,000) as at 31 December 2014 respectively with contracted gross cash flows due within 1 year (2013: due within 1 year).






(d) Liquidity risk (cont’d)

Non-derivative financial assets

The following table details the expected maturity for non-derivative financial assets. The tables below have been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Group and the Institute anticipate that the cash flow will occur in a different period.

Within one year

More than one year Total

$’000 $’000 $’000

Group2014Financial assets:Available-for-sale investments – 114,151 114,151Forward foreign exchange contracts 411 – 411Held-to-maturity investments 2,000 18,168 20,168Loans and receivables 255,044 1,958 257,002

Total undiscounted financial assets 257,455 134,277 391,732

Financial liabilities:Other payables 50,489 1,746 52,235Forward foreign exchange contracts 2,218 – 2,218

Total undiscounted financial liabilities 52,707 1,746 54,453

Net undiscounted financial assets 204,748 132,531 337,279



Within one year


$’000 $’000 $’000

Group2013Financial assets:Available-for-sale investments – 88,642 88,642Derivatives 73 – 73Held-to-maturity investments 4,000 10,650 14,650Loans and receivables 316,871 555 317,426


Financial liabilities:Other payables 67,002 238 67,240Derivatives 283 – 283

Total undiscounted financial liabilities 67,285 238 67,523








Within one year


$’000 $’000 $’000

Institute2014

Financial assets:Available-for-sale investments – 30,693 30,693Derivatives 5 – 5Loans and receivables 21,347 – 21,347


Financial liabilities:Other payables 16,937 – 16,937

Total undiscounted financial liabilities 16,937 – 16,937




Within one year


$’000 $’000 $’000

Institute2013

Financial assets:Available-for-sale investments – 31,416 31,416Derivatives 49 – 49Loans and receivables 76,824 – 76,824


Financial liabilities:Other payables 34,986 – 34,986

Total undiscounted financial liabilities 34,986 – 34,986


(e) Market price risk

The Group is exposed to risks arising from available-for-sale equity investments. Available-for-sale equity investments are held for strategic rather than trading purposes. The Group does not trade in available-for-sale investments.

Further details of these investments can be found in Note 14 to the financial statements.

Price sensitivity analysis

In respect of available-for-sale equity investments, if the prices had been 10% higher/lower, the Group’s and Institute’s fair value reserves would increase/decrease by $11,528,000 (2013: $8,864,000) and $3,069,000 (2013: $3,142,000) respectively.






(f) Categories of financial instruments

The following table sets out the financial instruments as at the end of the reporting period:

Group Institute2014 2013 2014 2013$’000 $’000 $’000 $’000

Financial assets:Loans and receivables 257,002 317,426 21,347 76,824Derivatives 411 73 5 49Available-for-sale-investments 114,151 88,642 30,693 31,416Held-to-maturity investments 20,168 14,650 – –

391,732 420,791 50,045 108,289

Financial liabilities:Other payables 52,235 67,240 16,937 34,986Derivatives 2,218 283 – –

54,453 67,523 16,937 34,986

(g) Financial instruments subject to offsetting, enforceable master netting arrangements and similar agreements

The Group and Institute do not have any financial instruments which are subject to offsetting, enforceable master netting arrangements or similar netting agreements.

29. Capital management

The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years ended 31 December 2014 and 2013.

30. Comparative notes

The financial statements for the financial year ended 31 December 2013 were audited by another firm of Certified Public Accountants.

Certain reclassifications have been made to the comparative figures to enhance comparability with the current year’s financial statements. As a result, the following line items have been reclassified:

31 December 2013As previously

reported As restated$’000 $’000

Statement of financial position

Assets:Non-Current assetsProperty, plant and equipment 279,125 276,794Investment properties – 2,331

279,125 279,125

31. Authorisation of financial statements for issue

The consolidated financial statements of the Group and the statement of financial position, statement of comprehensive income and statement of changes in equity of the Institute for the year ended 31 December 2014 were authorised for issue by the Governing Council at their meeting on 26 March 2015.



Singapore Institute of Management461 Clementi RoadSingapore 599491www.sim.edu.sg

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MCI (P) 158/03/2015Designed by Silicon+

Documents

Singapore Institute of Management Annual Report 2014