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Why billionaires are setting up family offices in Singapore
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Why billionaires are setting up family offices in Singapore

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Asia’s billionaires are getting ready to hand over to the next generation, and Singapore is benefiting from the rush to set up new or satellite family offices with an increased focus on philanthropy and impact investing.

In recent months, Horizon Ventures, a private investment firm associated with Hong Kong billionaire Li Ka-shing opened an outpost in Singapore.* Oppenheimer Generations, the family office of former De Beers chairman Nicky Oppenheimer, is also in Singapore while Bridgewater Associates founder Ray Dalio and Google co-founder Sergey Brin both set up shop in late 2020.

Singapore’s Economic Development Board is doing everything in its power to reel them in. It has enlisted the private banking sector to help family offices’ interest in philanthropy and impact investing, which seeks to generate a social or environmental impact as well as a financial return.

Two years ago, the Singapore government introduced variable capital companies (VCC), fund management vehicles with tax incentives and other benefits. These are appealing for family offices, particularly those with an interest in changing the world.

“Philanthropy is the new black in Asia,” said one private banker who advises the wealthy. “Singapore prides itself on being a financial hub and to keep that reputation, it needs to set the pace on new trends like green investing and impact investing.”

Asia is behind Europe and the United States, where philanthropy has long been a business that’s expected to generate measurable returns and the likes of the Bill and Melinda Gates Foundation have pioneered impact investing.

This is likely to shift with the looming generational change in wealth, said Peter Golovsky, managing director and head of family office services, Asia Pacific, at Alvarium, a global multi-family office.

“Some 85 per cent of Asia’s billionaires are first-generation wealth creators, founders of family businesses.

“Their average age is 65, so they are looking at succession strategies. Family office allocations in impact investments sit at around 12 per cent, but we expect that to double in the next few years, and it will be driven by the next generation.

“Singapore has attracted a lot of wealth through structures like VCCs and other tax incentives, including residency options and paths to citizenship.

“As global families and entrepreneurs, including philanthropists, think about where they want to set up and run their businesses, and where they want to live, I think there will be another step up,” he said.

One measure of interest in social investing is a sold-out conference on the topic, organised by industry group AVPN, that kicks off next Tuesday in Bali.

Despite this increased interest, impact investing structures have a long way to go, according to Mette Ekeroth, managing director and group head of philanthropy at the North-East Family Office, who will be at the conference.

NEFO was established by the founders of the Pandora jewellery brand, Winnie Liljeborg and Per Algot Enevoldsen, in Denmark in 2013. They opened a Singapore office three years later.

“Regulatory systems all over the world treat philanthropy and investment as very, very separate. Now everyone is realising there is an area between these two categories where a lot of the solutions lie to the problems the world faces,” Ms Ekeroth said.

“I have faith that Singapore is going to be the place that comes up with the structures we need. The authorities are engaging and consulting as they work multiple angles to try and address the gaps. We’ve seen in the past that when Singapore really wants to develop an ecosystem, it does, and it does it at high speed.”

*Clarification: After this story was published, CK Asset Holdings has advised Horizons Ventures is owned by Ms Solina Chau. Mr Li has collaborated with the firm on technology projects.

This article was originally published in The Australian Financial Review here.

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Stories Of Impact

Restoring the Mental Health of Girls Who Have Survived Abuse: HCSA Dayspring Residential Treatment Centre

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Clara* was just fifteen when she attempted suicide for the first time. She had believed her father’s violence was normal. It was not until she spoke to a psychiatrist that she realised violence and sexual abuse were not something that happened in every family. On her sixteenth birthday, after a second suicide attempt, Clara entered Dayspring Residential Treatment Centre (DRTC).

Our teenage years are when we develop crucial social and self-management skills, a time when the foundation for a successful adult life is laid. Survivors of childhood trauma often grapple with its long-term effects throughout their lives, underscoring the critical need for early intervention.

“Children are precious gems. For the ones who could not grow up in a safe and caring environment, they are placed into therapy group homes like HCSA DRTC. We work in teams to help the girls manage their trauma. I also do whatever simple ways I can in their recovery journey to help them see that the world is not as bad as it seems.”

Child Abuse: A Growing Problem

Regrettably, cases of child abuse have been rising annually for the past decade. In 2021, the Ministry of Social and Family Development investigated 2,141 cases of child abuse, marking the highest number in 10 years.

The majority were cases of neglect, which jumped 143 percent from 375 cases in 2020 to 910 cases in 2021. Physical abuse, usually the most common form of abuse, was the second-highest form of abuse in 2021, and child sexual abuse cases also saw a 70 percent increase in 2021.

 

HCSA DRTC: Healing Trauma and Nurturing Futures

HCSA Dayspring Residential Treatment Centre (DRTC) was established in 2011 to provide a caring, safe, and therapeutic environment for teenage girls who have suffered neglect, physical, sexual, or emotional abuse.

DRTC’s beneficiaries include girls aged 12-18 assessed by the Ministry of Social and Family Development (MSF) to have moderate to high trauma needs and who are facing persistent difficulties with behavioural and emotional issues.

By employing effective clinical therapies, the centre aims to help these girls become healthy individuals capable of successfully reintegrating into their schools, families, and society.

The girls live at the centre for 12 to 18 months and undergo a clinical programme that comprises three key phases to work through their trauma and restore their mental health.

The initial phase focuses on safety, stabilising the child while building trust and a sense of security. Following this, the regulation-focused treatment aids in teaching coping techniques to manage emotions and behaviours effectively. Finally, the beyond-trauma treatment provides tools to prevent relapses.

A value-based system guides each girl to align her actions with her values and aspirations, empowering her to take charge of her life. When she is ready to graduate, a six-month aftercare programme prepares the girl to rejoin her family, if it is safe for her. If her family home is unsafe, the programme prepares her to live with a foster family or assists her in transitioning to independent living.

An Urgent Need for Capacity Increase

As a certified Trauma Systems Therapy organisation, the most severe cases of complex trauma and abuse are referred by the Ministry of Social and Family Development (MSF) to DRTC.

Owing to the extensive resources and continuous, vigilant care necessary for these cases, MSF has imposed a limit, allowing DRTC to cater to a maximum of 12 girls concurrently. The operational expenses for maintaining this capacity amount to approximately $1.5 million annually.

With the rising number of child abuse cases and the urgent need for specialised trauma treatment services, DRTC is pushing to increase its resident capacity from 12 to 29.

To aid this expansion in services, DRTC will require additional funding and is calling for volunteers to help as befrienders and trainers.

“Caring for these young survivors is not just about healing wounds; it’s about shaping resilient futures,” says Gerard Wong, Senior Executive, HCSA Community Services. “We appeal to the generosity of CFS donors to join hands with us in expanding our outreach, impacting the lives of these young women, and offering them the chance to heal from adversity and rewrite their stories.”

Shining a Light on a Worthy Cause

CFS has supported DRTC since 2020. To date, CFS donors have contributed $70,000 to support the centre’s operating costs. The contributions go towards the salaries of therapists and staff, running costs of the residence, and food for the residents.

As testament to the programme’s impact, Clara says, “Dayspring turned out to be a strong pillar of support, helping me through difficult times in school and with my family. Even when I experienced suicidal thoughts, the staff never gave up on me and remained understanding and patient.”

“Surprisingly, when I saw my father for the first time after entering Dayspring, I was not angry at all. I felt at peace. I realised I had forgiven him. I told him that I believed he was a good person deep down. I understood: it is through forgiveness that we free ourselves and others from the invisible shackles that once held all of us down. This was when I knew how much Dayspring had changed me.”

To find out how you can support HCSA DRTC, please contact CFS.

* ‘Clara’ is not her real name. Her full story can be found at The Birthday That Changed My Life.

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‘I thought I couldn’t go through any more of it’: Cancer patient gets help after insurer says ‘no’ to $33k bill

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Good Samaritans have stepped forward to help a cancer patient, who hopes to spend more quality time with her 15-year-old daughter while keeping the disease at bay.

The drug that Ms Koh Ee Miang, 45, needs to control the spread of her cancer is expensive, and her insurance company has refused to pay for it – leaving her with an outstanding bill of more than $33,000 for treatment carried out between November and January.

Hard-pressed to pay for the drug, she stopped the treatment in January and reverted to basic chemotherapy. Her cancer markers jumped 50 per cent and her tumour grew.

Her oncologist, Dr Choo Su Pin of Curie Oncology, put her back on the targeted therapy treatment and offered to let her pay in instalments. Said Dr Choo: “The treatment works. Do I stop her medicine?”

The drug not only slows the spread of the cancer, it also reduces pain and has fewer side effects than chemotherapy.

Both patient and doctor were in a quandary over the high cost of the treatment after insurers rejected the claim.

Ms Koh is a housewife who says she hopes to take her 15-year-old daughter on a holiday to leave her with “happy memories” since the prognosis for her cancer, which is fourth stage, is not good – with only 2 per cent surviving five years.

The story of her plight in The Straits Times has resulted in several offers of help.

The Community Foundation of Singapore, set up in 2008 to encourage and enable philanthropy, reached out to the Emma Yong Fund – named after one of the stars of the musical cabaret group Dim Sum Dollies, who died of stomach cancer at the age of 36 – for help.

The Fund agreed to pay the $33,000 bill that was outstanding.

Fund administrator Selena Tan said though the fund was set up to help theatre practitioners, she was happy to extend the help to Ms Koh.

“Knowing Emma’s legacy and desire to help patients with cancer, it felt right to help cover 100 per cent of Ms Koh’s medical bills so that she can focus on her treatment and recovery, and not feel distressed by her bills,” she said.

Several readers also offered smaller sums to help defray the cost.

And AstraZeneca, the pharmaceutical company that produces the Enhertu drug she now needs, has offered to provide her with it. It costs about $10,000 per treatment. However, this is subject to certain compliance issues, which Dr Choo is hoping to resolve.

A grateful Ms Koh said: “Their kindness helps me feel less alone. And just when I thought I couldn’t go through anymore of it (it has been two years of chemotherapy treatment and its side effects), they help me push on in spite of weariness.”

She would like to thank all the “generous people whom I’ve never met” for their kind offers. She will not be accepting their offers, since help from the Emma Yong Fund and AstraZeneca is enough for her to continue with the treatment.

Ms Koh suffers from a rare cancer – human epidermal growth factor receptor 2 positive (HER2+) bile duct cancer – which afflicts about one in 3,500 cancer patients.

After it was diagnosed in June 2020, Dr Choo first put Ms Koh on standard chemotherapy treatment. When she stopped responding to the treatment, a second choice was used, but this too was not able to stop the spread of the cancer.

Oncologists say there are no standard treatments beyond this.

Dr Choo decided to put her on a drug that targets the HER2 protein, which causes cancers to spread much faster, to try to contain the disease. It worked.

But Great Eastern, the insurer with whom Ms Koh has a private hospital as-charged Integrated Shield Plan (IP), as well as a rider that pays the full cost of her portion of the bill, refused to pay for the new treatment.

GE said the IP contract has a clause saying it covers only drugs that have been approved for specific illnesses. The drug she was put on has only been approved by the Health Sciences Authority for HER+ breast cancer, and not for bile duct cancer.

More than a dozen oncologists The Straits Times spoke to said it is difficult to conduct large scale clinical trials for rare cancers – since patient numbers are low. And all said they do use drugs “off-label” – meaning the drug has been approved here, but not for that specific cancer, especially for the less common cancers.

Drug companies often feel the returns are not worth the cost and work required to seek approvals from regulators for such low numbers.

Dr Choo, who was chief of Gastrointestinal Oncology at National Cancer Centre Singapore before leaving for private practice in 2018, said there are some small-scale studies showing that the drug does work on the type of cancer Ms Koh has.

Insurers offering IP plans, which are integrated with MediShield Life, are divided on coverage of drugs which doctors think might help, but which are not specifically approved by the HSA.

At least three – AIA, Income and AXA – say they would cover such drugs. The Ministry of Health (MOH) said the basic MediShield Life national health insurance would also pay, subject to a monthly cap of $3,000.

This article was originally published in The Straits Times here. Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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CEO Catherine Loh goes on MONEY FM 89.3 to speak about the Sayang Sayang Fund with Michelle Martin

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Financial management by Catherine Loh

Michelle: Let’s start with CFS and the work that it does. How does it support charities and why did the Community Foundation of Singapore (CFS) start the Sayang Sayang Fund?

Catherine: The Community Foundation of Singapore is also a charity. We were founded in 2008, and our main objective is to inspire philanthropy in Singapore. We do that by helping donors achieve a greater impact with their giving in communities through charitable funds. Donors can establish their own funds or if they wish, they could support one of the Community Impact Funds that we’ve started up.

The Sayang Sayang Fund is one of such Community Impact Funds. It was set up in response to the needs that arose from the COVID 19 pandemic. With our understanding of the needs on the ground, our network of community partners, government agencies, and charity partners, we were able to quickly see what the needs out there were and who needed help.

We thought that by setting up this Fund, it would be an effective way of garnering financial support from those who want to give and disburse it quickly to those in need. That’s why we started it.

Michelle: I understand the Fund aims to help healthcare workers on the frontlines and the vulnerable, and that the Sayang Sayang Fund has pledged some quarter of a million dollars in taxi vouchers to frontline staff of healthcare institutions. How close is the Fund to meeting that goal?

Catherine: I’m happy to say that thanks to the generosity of our donors that we have actually disbursed over $400,000 of taxi and transport vouchers to 129 public hospitals, polyclinics and community healthcare providers. For that I have to thank ComfortDelGro, Grab and Gojek for partnering with us. And I must say that when we started the Fund, our first objective was the welfare of the healthcare workers on the frontline supporting us.

It is only right that we provide them with some love and care, sayang them a bit; that’s how we started this Fund. That was the first project we were looking to do. But over time, when we raised the money, we reached out to the charities through grants calls to send over their funding requests to us, we found that there were lots of needs. In the first round of grants calls we received almost three million dollars in requests for funding, and that is why we decided to continue with the Fund to raise more money.

Michelle: Where are the urgent needs now Catherine, and how is CFS helping to plug these gaps?

Catherine: With the circuit breaker measures, the loss of work and everybody having to stay at home, I would say that almost everyone in Singapore is affected. So one of the very urgent needs that we are trying to address is really how to support the students that have to study from home, or ‘home based learning’.

Through our Recess@Home programme, we are very grateful that we have the partnership support of the Ministry of Education to quickly reach out to thousands of children who might need financial support. Because these students do get subsidies or free food when they are in school, now these students cannot go to school. We want to provide them with some financial support so at least there is some assurance that they do get their proper meals while they study at home. So that is one need.

We realise too that there are seniors that may be sick and are living alone at home and not getting their usual medical care and support. We would also love to set up an emergency fund for those community nurses or even volunteers who are still allowed to do house visits to provide these vulnerable seniors with any form of support that they might need. We understand that there are lots of groups out there that are already providing food and basic necessities. Community nurses could supply them with medicines, medical support, essentials or anything they might need while they are staying at home on their own.

Even young students from families that might need them to take on a part-time job to supplement the family income are no longer able to do so. We could provide them with financial support so they can focus on their studies and not drop out of school because of the worries of not being able to provide for their family. That is one thing that we would like to do as well. Of course, we also have a lot of foreign guests and workers who are falling sick and how can we help them.

Last but not least, back to our healthcare workers again. With the number of cases that they have to take care of, I think it is very important that they stay physically and mentally healthy so that stress doesn’t get to them. We do wish to be able to continue to support these workers with transport vouchers or even funding so their organisations can charter, say buses to send them home quickly after their long work shift.

Michelle: Given the number and the sheer variety of needs out there, how is the Fund approaching giving? I understand in your initial phase, CFS was seeking donations of a million and above. Right now is pretty much any help welcome?

Catherine: We do have a target of three million, and as we speak there are more needs surfacing, so I do think the Fund will continue to stay open as long as there are needs out there that need support. We do have a team of grant-makers out there to assess the situation.

We don’t work alone; we work with our partners like government agencies, NCSS (National Council of Social Service) and AIC (Agency of Integrated Care). We have our whole network of charity partners and we have our other funders who are active and even volunteer groups. We work with all these groups to gather all this information to see where and how the Sayang Sayang Fund can help.

Michelle: Is there a minimum of a million dollars to be able to donate?

Catherine: No, any amount is welcome. I must say that Singaporeans in general have been very generous because last week when many of us received the $600 of the Solidarity payment, many people have donated online in support of Sayang Sayang and also the other charities that happen to be fund-raising.

Michelle: Singaporeans are so generous, so lovely to hear that. Can you share a little bit of your estimate of how much you’re going to need to meet the evolving emergency needs you anticipate for the next couple of weeks?

Catherine: I do hope we can raise another one to two million dollars so that we can actually provide longer term targeted support. I think this pandemic is not going to go away by early June. The economy will only be slowly cranking up after that, so there will still be people who need support one way or the other.

Listen to the full interview here: https://omny.fm/shows/money-fm-893/influence-lending-a-helping-hand-during-covid-19

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The competition was organised by City Harvest Community Services Association and received support from FUN! Fund, a Community Impact Fund jointly established by the Community Foundation of Singapore and the Agency for Integrated Care, with the aim of addressing social isolation among the elderly.

Senior Minister of State, Ministry of Communications and Information & Ministry of National Development Mr Tan Kiat How attended the event. He encouraged the elderly to stay physically and mentally well, as well as urging them to participate in community activities and enjoy their golden years together.

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

 

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.

L.S., a volunteer with the Reading Odyssey programme @ Spooner Road

中心“常胜将军”胡锦盛:比赛限时反应要快

现年92岁的胡锦盛是最年长的参赛者。自2017年退休后,他几乎每天都到活跃乐龄中心报到,从此爱上了玩拉密,每次可玩上三个小时,在中心是“常胜将军”。

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Beyond cultural philanthropy: The art of making a difference

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Last month’s Patron of the Arts event was a spot of sunlight at a time of gloomy Covid-19 headlines. The fact that Singaporeans – individuals as well as corporations – are still strongly supporting our arts groups in cash donations as well as with in-kind gifts was a heartening takeaway for everyone who cares for the arts and cultural scene in our country.

The annual awards – alongside a similar counterpart in the heritage sector – are a meaningful way to thank those who have been generous to the cultural landscape. And I am sure patrons also enjoy being in the limelight for an evening and being recognised for the vital support that they give to Singapore’s culture.

Cultural philanthropy is important for sustainability in the sector as it complements the grants given by the Government and the income that groups earn from ticket sales, classes and other programming.

However, while awards may recognise more significant donors, in reality, everyone can play a part, and arts companies appreciate all contributions, big or small. The income tax deduction also serves as an added incentive.

But beyond philanthropic giving, there are numerous other ways Singaporeans support the cultural scene. For starters, there are the skilled but unpaid volunteers who help out in many arts companies, serving on the board or on one of the committees. Today, with many arts companies being charities and some even Institutions of Public Character, which can collect tax-exempt donations, the boards have the important role of ensuring compliance with the latest codes of governance.

Fortunately, many of our leading arts companies have volunteers from the corporate world, including bankers, lawyers and accountants, who can contribute their expertise and ensure companies are well run, with funds from donors and grant-givers accounted for.

Sometimes, where necessary, they even mediate the relationship between the artistic team and company’s administrators who manage the purse strings.

Supporting artists’ works

It is also important to remember philanthropic giving typically benefits these arts charities. So any largesse may not benefit the freelance musicians, creative writers and visual artists, unless they receive commissions from the companies.

That is why there is another kind of patron who should be recognised. These patrons visit the artists’ studios, check what they are working on, and acquire or commission new works as a show of support. This is not philanthropy that attracts tax deductions, but such patrons have been instrumental in sustaining the careers of the visual artists, especially in the early days of their practice.

One sterling example of how one individual can make a difference is architect, art collector and former chairman of the National Gallery Singapore Koh Seow Chuan. His support of, and genuine interest in, Singaporean artists from pioneer painters like Cheong Soo Pieng to young contemporary artists, is well known and documented in Singapore’s art history. Singapore needs more committed patrons like Mr Koh.

Corporations, too, can give work to home-grown artists through active commissioning. For example, Raffles Hotel, as part of its reopening earlier this year, commissioned a playwright and theatre practitioners to create a virtual whodunnit set on the hotel’s beautiful grounds.

Co-owning the arts

But why is giving to the arts important in the first place? Why can’t the Government just fund and take care of everything? Well, that is because the arts should be co-owned by the people, even if there is strong government support. This model also ensures a diversity of artistic expressions and encourages more ground-up creations.

For individuals who step up and offer their time, energy and financial wherewithal, I suggest that they are driven by a deeper desire beyond a personal love for an art form. They clearly understand that art created from the community has something unique to say about the world we live in, conveyed through an artist’s sense of aesthetics or personal philosophy.

Such individuals also appreciate how the arts can inspire, restore weary spirits, and bring joy to people. Thus, by enabling artists or arts groups, these engaged individuals enrich the larger community and by extension, the nation.

For those with both ambition and resources, individuals have even galvanised like-minded people with diverse skills to start an arts company. Two relatively new organisations that have made significant strides in recent years are the Jazz Association, which develops and promotes home-grown jazz talents, and Re:Sound Collective, which programmes excellent chamber music for classical music lovers.

This is the spirit we need to harness in the Singapore of tomorrow. Certainly, the Government has signalled that it welcomes more partnerships with the private and people sectors, and no doubt, it has the resources to enable growth. This, of course, means a joint ownership of the arts and the attendant challenges in artistic excellence and audience development.

For those with the interest, skills or financial means but have no idea how to navigate and support the cultural scene, here are some practical suggestions.

The National Volunteer And Philanthropy Centre provides a service that matches skilled volunteers with leadership roles in non-profit organisations, including arts companies. First-timers can always start with event-based volunteerism, or by serving on a sub-committee, before offering to contribute on a board.

For those with more substantial financial means, they can approach the Community Foundation of Singapore (CFS), which can advise them on how to start a fund to support the cultural scene.

The CFS has helped donors set up charitable trusts with an interest in giving to the arts, among other priorities, on a sustained basis. In particular, newly settled entrepreneurs or business owners from overseas could consider this both to support and better understand the Singaporean cultural fabric.

One area Singapore can do better is in how the Government and an active citizenry can jointly identify the gaps in specific sectors, and establish ways to work together on solutions and co-deliver the outcomes. The Government should not be expected to have its finger on the pulse of every part of society, and indeed may not also be in the best place to respond to every challenge.

Timely questions

For the arts, this is a timely question as the National Arts Council takes stock of its first five-year arts master plan and looks ahead to its next.

Should grooming pop music talent for export or developing community arts for positive social outcomes be a priority? What about adapting our home-grown literature across multimedia or facilitating more translations? And importantly, how can the people sector jointly own these priority areas?

The approach here applies to other parts of society as well – from the social sector to sports and the environment. A trusting partnership between the Government and committed citizens will lead to Singaporeans proactively owning challenges and gaps in specific sectors, encourage experimentation on new approaches while providing greater clarity to private funders and skilled volunteers on where to focus their energies.

Successful partnerships will also reduce duplication and inefficiencies, such as having too many parties with similar missions or chasing after the same demographic to provide services.

As existing non-profit companies make an objective assessment of their future and relevance to their stakeholders, government agencies will also need to reflect on how much more space they can cede to support the growth of the people sector to achieve such strong partnerships.

This will be critical for a resilient citizenry, as society matures and the people continue to grapple with the pernicious impact of a protracted pandemic.

  • Paul Tan is the former deputy chief executive of the National Arts Council and serves on a few boards of non-profit arts companies in Singapore.

If you would like to start your journey of effective giving, visit here.

This article was originally published in The Straits Times here. Source: The Straits Times © Singapore Press Holdings Limited. Permission required for reproduction.

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