Opening Address by Ms Indranee Rajah, Minister in the Prime Minister's Office, Second Minister for Finance and National Development, at the ISCA Conference 2024 on 14 November 2024

Good morning, everyone. 

ISCA President Mr Teo Ser Luck,
Distinguished guests,
Ladies and Gentlemen,

Introduction

1.  It is a great pleasure to join you once again at the ISCA Conference. After last year's successful event, I am really excited to see the program expanded from one to two days. I hope that this is going to be an exciting and enriching experience for all of you!

The Enduring Importance of Accountants

2.  Accountants are really the unsung heroes of the corporate world. You work behind the scenes, but your work is fundamental to the stability and growth of every company. By ensuring that every dollar is properly and accurately accounted for, accountants uphold financial integrity, transparency and trust –that is the glue that holds businesses together. That is the lubricant that keeps businesses going. Accountants also provide a clear picture of a company’s financial health, which guides businesses in decision-making to drive long-term success. These efforts are key to maintaining Singapore’s status as a trusted global financial hub. 

3.  The world is changing rapidly, but accountants will continue to play a critical role in today's dynamic business environment. 

a. Global markets today are volatile – characterised by geopolitical tensions, economic shifts, and changing regulatory requirements. Being able to assess and anticipate different scenarios is fundamental to driving a company’s growth. 

b. Sustainability has also taken centre stage, with investors and consumers demanding greater accountability on a company’s Environmental, Social and Governance (ESG) efforts. Preparing reliable disclosures helps businesses build investor confidence and meet sustainability-related goals. 

c. Next, digitalisation, big data and artificial intelligence or AI are creating new value for companies. Accountants are increasingly expected to be able to analyse large sets of data, and translate them into actionable insights that will inform business strategy.    

4.  Accountants, like yourselves, are therefore more than just the custodians of financial records. You play diverse roles, and you will also be data analysts, sustainability experts, strategic advisors, and many other important roles.  

Progress update on AWRC’s work 

5.  To this end, the Accountancy Workforce Review Committee or AWRC, comprising relevant industry stakeholders and academia representatives, published a comprehensive set of recommendations in May 2024, to strengthen the attractiveness of our accountancy sector and develop our talent pipeline. Mr Chaly Mah was the Co-Chair of this task force and provided very valuable insights. Former 2nd Permanent Secretary for the Ministry of Finance (MOF), Ms Lai Wei Lin, who is now at the Ministry of Health (MOH) was the other Co-Chair. Both of them did remarkable work together with the members of the task force. 

6.  I would like to take this opportunity to thank ISCA for its strong support and contributions to the AWRC’s work. Many ISCA members generously shared your insights on shaping the future of the accountancy profession. ISCA also set up the Singapore Chartered Accountant Qualification (SCAQ) Advisory Panel, to gather feedback on the SCAQ through surveys and focus group discussions. This helped the AWRC to finalise its recommendations to improve the accessibility of an accountancy career.  

7.  We have started to implement some of the AWRC’s recommendations and are beginning to see good results. I was just talking to Fann Kor (Chief Executive Officer, ISCA) just now and to some of you, and I understand that our universities have started to see an uptick in the number of those wanting to do accountancy, which is good news. Also of course, as Ser Luck mentioned earlier, the number of those wanting to do the SCAQ has doubled, which is quite remarkable.

8.  In addition to that, on the recommendation to redesign the reward structure of accountants, I am really heartened to know that many accounting firms such as the Big 4s, and Small and Medium Practices like RSM and BDO have stepped forward to raise their starting salaries. As you can see from the uptick in the enrolment for accountancy and SCAQ – signals like that matter to young people who want to enter the profession because they want to know that they are able to make a good living and have a good start. Having a good starting salary does help with your talent pipeline. Firms like the one I have mentioned, have also committed investments into talent and development programmes. This is going to help attract more of our young Singaporeans into the accountancy sector.

9.  The AWRC also recommended that stakeholders work together, to provide more opportunities for individuals to gain early hands-on experience in working in accountancy-related roles. 

a. NTU recognised this and recently launched the NTU Bachelor of Accountancy (Sustainability Management and Analytics) programme, which has gained good traction. More than 70 students have enrolled in this programme. They can look forward to an integrated curriculum, with a 30-week internship with recognised accounting firms and corporate organisations. This will create a richer learning experience, and allow them to enjoy an accelerated pathway in becoming a Chartered Accountant, as the 30-week internship will count towards the three-year minimum work experience of the SCAQ.

10.  To make the SCAQ more accessible to students from all fields of study, we also introduced several enhancements to the programme: 

a. We have broadened entry pathways of the SCAQ, so that polytechnic graduates from all disciplines are able to undertake the SCAQ. 

b. We have also streamlined the SCAQ structure, by providing additional exemptions for the SCAQ Foundation Programme.

11.  ISCA, too, has been very active in promoting the SCAQ and I thank them for their partnership and support. 

a. ISCA launched the Accelerated Pathway Programme last year, in partnership with our local universities like NUS, NTU, SMU, SIT and SUSS.

b. Under the Accelerated Pathway Programme, ISCA will provide substantial sponsorship for the candidature and examination fees for students who pursue the SCAQ during their university years.

c. For our polytechnic graduates, ISCA will also be sharing SCAQ learning resources with them, to support them in completing the SCAQ.

12.  All these efforts have led to a significant increase in interest. Sign-ups for SCAQ this year (as of September 2024) have more than doubled, compared to the total number of sign-ups in 2023. 

13.  This is just the start of the journey. There are still several more AWRC recommendations that will take more time to implement and execute.

14.  To sustain the momentum, ACRA and ISCA have jointly established the Implementation Committee on the Accountancy Workforce Development. The committee will be chaired by President of ISCA, Mr Teo Ser Luck, and ACRA’s Chief Executive Mrs Chia-Tern Huey Min. Comprising representatives from accounting firms, in-house accounting functions and Institute of Higher Learning (IHLs), the committee is in the midst of developing and executing initiatives in line with the AWRC recommendations. We can look forward to them in the coming months. 

15.  I want to express my appreciation to the committee members for rallying stakeholders and industry players, to work closely together to implement the AWRC’s recommendations.

Starting a career in accountancy

16.  Next, on starting a career in accountancy. We must continue to attract young talent to build a sustainable talent pool. On this note, I am delighted to launch ISCA’s “Making Accountancy Education Fit for Purpose for the New Economy” Report.  One of the key findings of the report is that more than half of non-tertiary students continue to aspire towards pursuing accountancy as a career. IHLs, industry players and professional accountancy organisations must build on this interest, to support more students to embark on this journey. 

17.  I also commend ISCA for setting up dedicated offices in eight different polytechnics and universities. This supports all students pursuing the SCAQ, and guides them in completing the qualification, regardless of their course of study. By pursuing a professional accountancy qualification before graduation, more students are likely to embark on accountancy as a career. It is a very thoughtful and strategic move.

18.  The Implementation Committee is also further developing an Education and Career Guidance (ECG) Playbook for Accountancy. This playbook will offer insights on the career pathways for an accountant, and address common misconceptions about the profession. With the playbook, ECG counsellors across schools will be better able to raise awareness of accountancy as a dynamic and viable profession. 

19.  There are misconceptions that being an accountant is boring and low paying, which I think we can be more proactive in dispelling this.

20.  I am happy to launch the Salary and Career Snippets Revelation #2, which builds on the first edition, to provide students with further insights on the accountancy profession. Some key takeaways are:

a. Based on MOM’s Occupational Wage Survey in 2022, accountancy-related roles, such as treasury managers, tax accountants and auditors, pay above the national median monthly wage of $4,500.

b. Furthermore, accountants have a better long term salary trajectory compared to others in adjacent industries. The salary increases for accountants from their 30s to their 40s is more than 50% higher than the salary increases of adjacent roles in the modern services cluster¹. 

21.  Students can also gain exposure to the industry early through meaningful internships. I encourage employers and IHLs to work together to structure internships in a meaningful and enriching manner, so that students can better appreciate the contributions that accountants make to businesses and the wider economy. Basically, the bottom-line is, if you want students to join you, you have to show them how exciting, dynamic and purposeful your sector is, and you have to show them the things that they can look forward to. You have to dispel the dull and boring image of the past, and really show them how transformational the work of an accountant is. For Millennials and Gen Zs, what really matters to them is purpose. Quite apart from salary and the normal career considerations, they want meaning and purpose in what they do. And a lot of what accountants do have meaning and purpose, you just need to articulate them. You need to explain and show and tell them what meaning there is in the work that you do, and that as much as anything else, will attract the students. 

Building a Career in Accountancy

22.  Next on building a career in accountancy, the recommendations in ISCA’s research report explores the evolution required in accountancy education, to keep pace with the rapidly changing business landscape. 

23.  The road ahead for accountants is an exciting one. Accountants possess a unique set of skills that opens the door to a wide range of opportunities. With their analytical skills, resourcefulness and versatility, accountants will find themselves taking on roles in independent boards and committees, and can take on senior positions such as that of the Chief Financial Officer.

24.  I am sure that most of you would recognise these three brands and companies flashed on the screen – do you all know what they have in common? Nike, Bloomberg and AirAsia are all in different sectors, but their founders are all trained accountants. 

25.  If the accountant learns new skills and builds new capabilities, he or she will remain highly sought after.

26.  Take Ms Wong Dan Chi for example. She was previously an auditor at KPMG and has contributed to the sustainability space through several working groups and board committees. She is now the Head of ESG Advisory and Integration at Schroders. 

27.  I encourage all of you to seize emerging opportunities like Dan Chi. Through attending workshops, seminars, and pursuing certifications, you can stay abreast of trends in areas such as analytics, sustainability and forensics. I do know, having been in the profession myself, that sometimes it is very difficult to carve out the time to do this kind of continued education. But, please make the time to gain new knowledge and skillsets because this is what is going to keep you relevant in the future.

a. You can also tap onto the wide array of courses and masterclasses that ISCA offers. They support young and seasoned accountants, as well as mid-career switchers, to further their professional development. 

b. ACRA is also developing the Body of Knowledge for Sustainability Reporting and Assurance, which will set out the key knowledge areas and learning objectives for individuals to build capabilities in sustainability reporting and assurance. This will guide training providers to design training programmes. Accountants who embark on such training programmes can feel confident that they will be equipped with the right skills to navigate evolving sustainability reporting standards and requirements.  

Conclusion 

28.  In conclusion, let me say that I am heartened that ISCA and many of you here have invested significant efforts in developing the accountancy sector. This includes building partnerships, nurturing our young talent, and taking charge of your own development. Let us continue to build on the strong foundation we have laid, and collectively grow and elevate the profession. 

29.  Thank you all very much and I wish you all a fruitful conference.

 ¹ This includes occupations in the Architecture and Engineering, Consulting, Accounting, Legal and Advertising sectors.