Keynote Address by Ms Indranee Rajah, Minister in the Prime Minister’s Office and Second Minister for Law, Finance And Education, at the ACCA Singapore Annual Conference, 24 May 2018 at Marina Bay Sands

Harnessing Digital Connections to Grow the Accountancy and Legal Sectors

Ms Helen Brand, Chief Executive of ACCA,
Distinguished guests
Ladies and gentlemen

1. Good morning. Thank you for inviting me here today to speak at ACCA’s annual conference.

2. In February this year, our Finance Minister in Budget 2018, identified three major shifts in the coming decade:

• a. First, the shifting global economic weight towards Asia. So Asia is going to be the place where the activities are going to happen;
  
  b. Second, the emergence of new technologies; and
  
  c. Third, the aging population.

3. For today’s purpose, however, I would like to focus on the second shift – the emergence of new technologies.

Accountancy and legal professions in the digital world

4. In 2015, father and son academics Richard and Daniel Susskind co-authored a book called The Future of the Professions: How Technology Will Transform the Work of Human Experts.

• a. In that book, they argued that technology threatens to render service professions obsolete, accounting and law included.
  
  b. Perhaps humans won’t become obsolete, but certainly, in these professions technology will transform professional services.
  
  c. As ACCA found in your report Drivers of Change and Future Skills, new technologies are already transforming accountancy. Over the next decade, we expect further changes.

5. However, such changes will not render the accounting and law professions obsolete.

• a. There were mixed feelings, I think, when we first learnt about new technologies like artificial intelligence and robotics.
  
  b. But today, we have started to adapt. Today, we are starting to leverage on these technologies to improve our business processes.

6. New technologies are reshaping Singapore’s economy. These technologies are a natural next step in the evolution of our industrial clusters. They are to be harnessed, and not feared.

• a. We won’t deny that with these technologies, many traditional job functions in the accountancy and legal sectors will change.
  
  b. However, these technologies will not be capable of building relationships, of replacing all systems, or of replacing all staff. And when it comes to the human intricacies of the work that both the accountancy and the legal profession do, these technologies cannot do it all.

7. Taken together, the emergence of new technologies presents us with a fundamental question: “How can we harness the digital connections created by new technologies to grow the accountancy and legal sectors?” ACT to harness digital connections

8. In ACCA’s report Drivers of Change, you spoke of the need for service professionals to be more rounded, to embrace what you call as the Seven Quotients for Success.

• a. It is true with new technologies, technical expertise per se will no longer be sufficient for accountants and lawyers to grow.
  
  b. To become strategic business partners:

9. I would also like to highlight three key qualities relevant to the professions: Adaptivity, Collaboration and Trust.

• a. These qualities have served the accountancy and legal professions well over the years.
  
  b. As we transit into the digital world, these qualities remain relevant, in fact, not just relevant but essential, and will form the foundation for the accountancy and legal professions to effectively harness digital connections.
  
  c. So let me touch a little on each in turn.

10. First, on Adaptivity.

• a. Over the years, accountants and lawyers have shown your ability to adapt.
  
  b. Adaptivity will be increasingly important in tomorrow’s digital world.
  
  c. To this end, I urge accountants and lawyers to continue to adapt and grow, so that you can continue to overcome all obstacles in your way.

11. Second, on Collaboration.

• a. The importance for collaboration is highlighted in the Report of the Working Group on Legal and Accounting Services.
  
  b. I am encouraged to hear that ACCA will be exploring the possibilities for collaboration between the accountancy and legal sectors at an upcoming ACCA and Law Society event next month.
  
  c. I am also certain that the growing demand for infrastructure in Asia and ASEAN will present more opportunities for the accountancy and legal sectors to collaborate.

12. Finally, Trust.

• a. Accountants and lawyers are in the business of selling trust.
  
  b. Many in the audience today will remember the fall of Arthur Andersen in 2002.
  
  c. In tomorrow’s digital world, trust will increasingly be an important element in the work of accountants and the lawyers.
  
  d. So, to this end, I would urge accountants and lawyers to continue putting the public interest at the heart of your work, so that the public trust in you will remain unwavering.

13. To effectively harness the digital connections created by new technologies, accountants and lawyers will need new skills.

• i. However, as we focus on the new skills needed, let us not forget the three qualities that will help accountants and lawyers to effectively harness the digital connections created by new technologies. So, let’s ACT – Adapt, Collaborate and earn Trust.

Conclusion

14. In conclusion, let me say that new technologies will present us with a suite of new challenges and opportunities. To harness digital connections and grow, we have to plan ahead. Indeed, like ACCA, we have to Think Ahead.

15. So, let me end by wishing you a very fruitful and successful conference. Thank you very much.