Singapore to stay competitive with four-pronged strategy

Singapore to stay competitive with four-pronged strategy

By NISHA RAMCHANDANI
ASIA’S economic prospects look positive despite the financial turmoil in the United States, says Minister for Trade and Industry Lim Hng Kiang, and Singapore is also expected to keep its economy competitive with a four-pronged game plan.
Speaking at the European Chamber of Commerce Europe Day Lunch yesterday, Mr Lim identified the four key areas that Singapore is focusing on such as strengthening growth in the manufacturing sector - the aerospace industry and biomedical sciences, in particular - and exploring new growth areas such as clean energy.

As clean energy is a cluster that presents economic opportunities and has the potential to grow, Singapore is striving for new collaborative projects in this sector with European companies.

Greater focus on innovation and R&D is also part of the strategy, especially in fields such as environmental and water technologies, interactive and digital media, as well as life sciences.

Mr Lim also urged companies to push for an EU-Singapore free trade agreement (FTA) within the framework of the regional Asean-EU FTA so as to foster ‘deeper bilateral trade liberalisation’. An EU-Singapore FTA would produce benefits such as tariff concessions, faster market entry for EU companies as well as intellectual property (IP) protection.
 
While Singapore’s bank secrecy laws could prove a sticking point in establishing such an FTA, Mr Lim pointed out that Singapore had managed to draft FTAs with both the US and Japan, and that the same could be done with the European Union.

The EU, which is Singapore’s second largest trading partner after Malaysia, chalked up a record $97.5 billion in bilateral trade with Singapore last year, 6.3 per cent higher than in 2006. Europe is also the largest source of foreign investment - over a third of incoming foreign direct investment (FDI) - in Singapore. Over 7,000 European companies have established a presence in Singapore.

‘One area that deserves to be improved is trade in agricultural and processed agricultural products,’ said Ambassador Holger Standertskjold, who is head of the European Commission’s Delegation in Singapore.

Goods from Europe currently account for about 11 per cent of the total agricultural and processed agricultural products in Singapore, but it is hoped that the figure will eventually double.
Source : Business Times  - 10 May 2008

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YOG village will be completed by Feb 2010 - Singapore

YOG village will be completed by Feb 2010 - Singapore

It will be 4-5 months ahead of schedule because of ‘green lane’ status
By LEE U-WEN
THE Youth Olympics Games (YOG) village will be ready by February 2010 - four to five months ahead of schedule, thanks to the government giving the project ‘green lane’ status.
 
Game plan: An artist’s impression of the new University Town campus at NUS, which will be used as the YOG village 
This means that there will be plenty of time for fitting out and testing, well ahead of the Games opening ceremony on Aug 14, 2010.

Various government agencies have agreed to work together and give greater priority and resources to the project at the new 19 ha University Town campus of the National University of Singapore (NUS).

The agencies will speed up approval processes, anticipate problems, resolve issues with consultants and contractors, among other things.

The Building and Construction Authority (BCA), Urban Redevelopment Authority, National Environment Agency, NParks and the Land Transport Authority have been roped in so far.

NUS deputy president for administration Joseph Mullinix, who chairs the University Town development committee, said that the government’s decision to step in has helped eliminate many barriers.

‘The biggest one is time,’ he said. ‘This project is very large. You are talking about 25-storey buildings on a very compact site, and in a very short timeframe. This is a time of heavy construction activity in Singapore, so we needed to be sure we could attract the best contractors.’

The International Olympic Committee (IOC) docked several points off Singapore’s score when it bid for the YOG last year, citing concerns over the island’s ability to complete the Games village on time.

But doubts were cast aside when Singapore’s YOG committee reassured the IOC in December last year that there would be no hiccups with construction or red tape.

Poh Yu Khing, director of the Sports Hub project, said: ‘The IOC looks at construction of major projects around the world all the time. When they saw our University Village project and the time line, naturally they had question marks. But we explained how our construction industry stands out - it is much more certain and is always able to deliver on time.’

He cited factors such as Singapore’s weather, which allows construction to be carried out most of the year, extended work hours and expanded foreign quotas the government can grant for strategic projects.

BCA, the coordinating agency for University Town, is playing the role of ‘goalkeeper’ to ensure that the technical needs of all the other agencies are complied with.

Hardly any changes were made to the original design of the University Town after it was confirmed that it would be the site of the YOG village.

The only significant addition, said Mr Mullinix, is a dining hall that will be set up to accommodate all 3,500 athletes and the officials during meal times. This is a temporary structure that will be taken down when the Games are over, he said.

Piling work has already begun at University Town, after a ground-breaking ceremony in February.

The campus, going up on land that was the Warren Golf Course, will cost between $500 million and $600 million to build. After YOG is over, the campus will be used by NUS students who will live, learn and socialise under the same roof as their professors.

A two-level bridge across the Ayer Rajah Expressway - the upper for cars and lower for pedestrians - will link the town to the main NUS campus at Kent Ridge.
Source : Business Times  - 10 May 2008

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Almost 80,000 Singapore Grand Prix seats sold

Almost 80,000 Singapore Grand Prix seats sold

CLOSE to 80,000 seats have been sold for the Singapore Grand Prix since tickets were released in mid-February.
A total of 96,000 tickets have been put up for sale. Of these, 83,000 are three-day walkabout and grandstand passes. The remaining 13,000 are for corporate hospitality and Paddock Club seats.

In recent months, race promoter Singapore GP (SGP) has added to the seat count by roping in areas around the track, such as the Singapore Flyer.

SGP has also said it is working with other parties to establish similar partnerships. BT understands that one of these parties is Suntec Singapore International Convention & Exhibition Centre.

SGP released 9,000 single-day walkabout tickets late last month, demand for which has been brisk. ‘Sales are strong and the most popular single-day pass is for Saturday,’ said SGP spokesman Jonathan Hallett.

There is no plan to release single-day grandstand tickets. But this could happen if tickets are still available close to the race weekend. ‘This will be strictly on an availability basis. It’s not guaranteed, especially if three-day passes continue to sell strongly,’ said Mr Hallett.
 
Seats are still available in the Pit, Turn 1, Padang, Bay, Esplanade Steps and Singapore Flyer Promenade grandstands. Seats in the Turn 2, Turn 3 and Esplanade Waterfront grandstands are in limited supply.

Tickets for City Hall steps are yet to be released as some seats are obstructed by trees. SGP is looking at removing the seats with affected views.

The maximum possible capacity of the City Hall grandstand is 700 seats.
Source : Business Times  - 10 May 2008

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A-Reit buyer of Creative’s HQ building in Singapore Jurong East

A-Reit buyer of Creative’s HQ building in Singapore Jurong East

By KALPANA RASHIWALA
ASCENDAS Real Estate Investment Trust (A-Reit) has emerged as the buyer of Creative Technology’s headquarters building at 31 International Business Park in Jurong East. The price will be $246.8 million.
 
On completion of the sale, a subsidiary of Creative Technology will lease the property for five years
 
 
 
 
 
Creative said in March that it had agreed to sell and lease back the property but did not disclose the buyer’s identity. The deal is subject to approval by Creative shareholders and JTC Corp.

On completion of the sale, a Creative subsidiary will lease the property for five years, with options to renew for a further three plus two years.

A-Reit’s manager said the average yield for the initial five-year lease will be 6.24 per cent. Additional rent is payable in the third and fifth years of the lease if the cumulative increase in Singapore’s Consumer Price Index exceeds 5 per cent.

Had A-Reit bought, held and operated the property since the start of the current financial year, the proposed acquisition would have boosted its distributable income per unit by 0.07 cent.

A-Reit’s manager will receive a $2.5 million acquisition fee. Other transaction costs are estimated at $3.7 million.

The property, valued by CB Richard Ellis at $246.8 million, is a part five-storey, part seven-storey and part eight-storey tower with basement parking.

It has an auditorium and a 2,000-capacity outdoor amphitheatre and is on a 265,739-sq-ft site with 30 + 30 year leasehold tenure from Dec 16, 1994.

A-Reit plans to fund the acquisition by debt and/or equity. On the stock market yesterday, the counter ended 14 cents lower at $2.50.
Source : Business Times  - 10 May 2008

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Singapore Temasek to appeal Jakarta court ruling

Singapore Temasek to appeal Jakarta court ruling

Singapore entities, told to divest telco stakes, may go to Supreme Court now

(JAKARTA) An Indonesian court yesterday rejected an appeal by Temasek Holdings, Singapore’s state- owned investment company, and its affiliates against a ruling that it had breached the country’s anti-monopoly laws.
The Central Jakarta District Court upheld a ruling last November by state competition watchdog KPPU ordering Temasek and its affiliates to divest their stake in one of the two largest Indonesian telecom operators.

It also shortened the deadline for divestment to 12 months, from the two-year deadline set by KPPU.

Temasek has an indirect stake in PT Telkomsel through SingTel, which owns 35 per cent of the telco. Separately, Temasek’s wholly-owned subsidiary ST Telemedia holds a 40 per cent stake in Indosat, the second-largest telco, through its subsidiary Asia Mobile Holdings.

Temasek said it was ‘deeply disappointed’ with the decision and plans to appeal the ruling, it said in an e-mailed statement.

‘The facts are Temasek has no shares in Indosat and Telkomsel, and plays no role in their business decisions and operations,’ said Temasek’s managing director for strategic relations Goh Yong Siang in the statement.
 
ST Telemedia chief executive officer Lee Theng Kiat said in a separate e-mailed statement: ‘We will vigorously challenge through all available legal channels the court decision that was based on the groundless allegations of the KPPU.’

Mr Lee said that the court had not taken into account the arguments against KPPU presented by ST Telemedia, AMH and other independent witnesses. He said it was the Indonesian government that had invited ST Telemedia in 2002 to participate in a transparent bid for the Indosat stake. In fact, a minister in the former Indonesian government had admitted that, without a strategic investor, Indosat might not survive.

ST Telemedia paid a premium on Indosat’s shares and helped convert it into a competitive player. After a consultation meeting in 2003, KPPU itself had agreed that the deal was in the clear. ‘It is therefore absurd that after four years since the consultation meeting, the KPPU has decided to adopt a different attitude,’ said Mr Lee.

SingTel said it objected to the decision and was studying its options. ‘We will examine the court’s ruling in depth before deciding on our appeal to the Supreme Court,’ it said.

The court’s decision came as no surprise, but is likely to reinforce concerns among some international investors. ‘Indonesia needs to show more commitment to investors,’ said Christopher Wong, who helps to manage US$40 billion of assets at Aberdeen Asset Management in Singapore, including shares in Singapore Telecommunications, Indosat and PT Telekomunikasi Indonesia, Telkomsel’s parent.

‘The ruling is sending the wrong signal.’

KPPU ruled last Nov 19 that Temasek had breached antitrust laws by using its indirect stakes in Telkomsel and Indosat to fix mobile-phone calling prices.

The court yesterday also cut an earlier fine of 25 billion rupiah to 15 billion rupiah (S$2.23 million) and gave Temasek the option of cutting stakes in both companies by half. It also overruled KPPU’s decision to ask Telkomsel to cut prices by 15 per cent.

‘We consider that it is fair if they are given an option to reduce their shareholding in each of the companies,’ Andriani Nurdin, the judge who presided over the hearing on the telecommunications assets yesterday, said at the Central Jakarta District Court. — Reuters, AFP, Bloomberg

Source : Business Times  - 10 May 2008

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Stanchart goes on hiring spree - Singapore

Stanchart goes on hiring spree - Singapore

Bank swims against the tide; plans to recruit another 500 in S’pore and 10,000 worldwide
By CHOW PENN NEE
(SINGAPORE) While banks in the US and Europe are making announcements - almost on a daily basis - about job cuts and writedowns, Standard Chartered stands quietly poised to grab any talent that may come its way.
 
‘We are well-positioned for growth and are investing in people to leverage on the opportunities in the market.’
 
- a Stanchart spokeswoman 
 
 
 
 
As its peers downsize, Stanchart will hire aggressively, especially in Asia. The bank has decided to swim against the general tide of gloom and feels this is the time to grow.

The bank derives most of its profits from Asia, Africa and the Middle East and has escaped relatively unscathed from the sub-prime fallout. It is well-positioned to expand, it said.

A Stanchart spokeswoman told BT yesterday that its Singapore operations will be expanding by nearly 11 per cent in 2008 alone. Some 500 people will be hired in Singapore across the consumer and wholesale banking and support functions, mainly in sales and risk management positions. The bank employs some 4,700 people in Singapore.

In all, the bank will be hiring 10,000 staff this year, across the world according to Richard Meddings, Stanchart’s group finance director.
 
The biggest hiring spree will be in India where the bank plans to recruit another 3,000 people. Another 1,500 will be hired in China, 500 in Hong Kong, 400 in Pakistan, while the remaining 4,100 will be spread across different geographies. The bank’s consumer banking business will see the biggest expansion staff-wise. More than half of the new hires - 6,000 people - will be recruited for this segment, while 1,000 will add to the wholesale banking staff. The remaining 3,000 hires will be slotted in support functions like risk, finance, operations, and technology.

‘We are well-positioned for growth and are investing in people to leverage on the opportunities in the market,’ said the Stanchart spokeswoman.

‘We have been very successful in supporting this growth in Singapore due to our ability to attract, engage and develop talent across our markets,’ she added. The bank on Wednesday said it had writedowns of US$97 million on its asset-backed securities portfolio for the first quarter. Another US$156 million charge was made to reflect losses arising from the change in the fair value of its available-for-sale reserves. The bank reported writedowns of US$300 million for 2007 on the value of of some of its its asset-backed securities.

All this, however, paled in comparison with the bank’s profits before tax of US$4.04 billion for 2007.

This compares to other banks which have been beset with losses from their investments in collateralised debt obligations (CDOs). Swiss bank UBS AG, reported a net loss of 11.5 billion Swiss francs (S$15 billion) for its first quarter on the back of writedowns of US$19 billion. UBS is cutting 5,500 jobs globally, on top of 1,500 already earlier announced.

Citi reported a straight quarterly loss of US$5.11 billion , undone by more than US$15 billion in writedowns and increased reserves for credit losses. The US financial giant announced the slashing of 9,000 more jobs, in addition to the 4,200 job cuts already reported in January.

Source : Business Times  - 10 May 2008

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Managing foreign reserves gets tougher: Singapore GIC

Managing foreign reserves gets tougher: Singapore GIC
 
By Grace Ng 
 
THE current ‘difficult environment’ poses challenges for managers of foreign exchange reserves across the world, said Dr Tony Tan, the deputy chairman of the Government of Singapore Investment Corp (GIC), yesterday.
Given greater uncertainty and volatility in the financial markets, ‘managing foreign exchange reserves to secure a satisfactory return within acceptable risk limits is likely to become more challenging in the coming years as compared with the past decade’, said Dr Tan.

He was speaking during a panel discussion yesterday afternoon at the first annual Lujiazui Forum in Shanghai.

The international finance forum brought together financial leaders, scholars and government officials including Chinese Vice-Premier Wang Qishan to discuss financial reform in China.

In his speech, Dr Tan warned that ‘economic risks could rise further in the next 12 months because of sharper-than-expected falls in house prices and a further spike in energy costs’.

He added that the sharp drop in United States house prices could deepen mortgage-related losses and dampen consumer spending. Meanwhile, rising energy costs might offset the positive impact of the tax rebates that Americans will get from a fiscal stimulus package.

Mr Tan also raised some difficult issues that managers of global foreign reserves are trying to address. These include the debate over whether the US economy will sink into a deep recession - and if this is likely to spread to major economies.

He also highlighted the question of whether financial risks will abate over the next few years, as well as the thorny issue of inflation plaguing economies worldwide.

If countries were to wager on a world of ’significantly higher inflation and lower growth in the next three to five years’, they would then have to solve the puzzle of how to adjust the asset allocation for their reserves to reflect this new outlook.

‘There are no clear answers to these questions,’ declared Dr Tan.

He noted that in the current ‘difficult environment’, the growth of major economies outside the US, especially China and India, has become ‘even more important in sustaining global growth prospects’.

Capital flows from major Asian and Middle Eastern economies have also become more important in stabilising the global financial system, added Dr Tan.

Fund flows from these countries have helped to prevent ‘a disorderly fall in the US dollar’ and also helped to ‘recapitalise US and European financial institutions.’
Source : Straits Times  - 10 May 2008

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OUE earmarks $530m to build 38-storey tower - Singapore

OUE earmarks $530m to build 38-storey tower - Singapore
 
Tenants of existing block given till end of this month to vacate premises

By Joyce Teo, Property Correspondent 
RISING SOON: The OUB Centre Tower 2, seen here in an artist’s impression, is expected to fetch rental rates of $15 psf to $16 psf. — OUE
 
THE fitness chain True Yoga will have to find a new position to assume in the business district after one of its outlets got its marching orders, but it might be a bit of a stretch given the shortage of office space.
True Yoga and other tenants, including chemist Watsons and the Denise wine shop, must leave the retail block at the OUB Centre at Raffles Place to make way for a $530 million office tower.

The yoga and fitness centre, which takes up more than 30,000 sq ft across four floors of the low-rise retail podium, will close at midnight next Thursday.

The other tenants must leave by the end of this month.

True Yoga has not yet secured another site, but its clients can use the group’s other two outlets at Pacific Plaza and Ocean Towers in Raffles Place. It has also arranged for its fitness clients to use facilities at Planet Fitness for six months and further extended membership packages for another six months.

Property firm Overseas Union Enterprise (OUE) will start to redevelop the retail podium site from June 1.

The podium sits next to the 60-storey OUB Centre office tower, which will not be affected by the redevelopment.

OUE received provisional permission to redevelop the podium in August last year.

True Yoga said yesterday that it was first told of the landlord’s plans on Jan 31 and given three months’ notice.

It was then granted extensions on a month-to-month basis as there had been a chance the development plans might be delayed. OUE then confirmed on April 4 that there would be no further extensions, as construction would start next month.

‘We have been actively looking for alternative locations,’ a True Yoga spokesman said last night.

‘It is not easy to locate a site of this magnitude within such a short time since the final notification on April 4.’

Some True Yoga clients were upset with the late notice of the closure.

Although the new office block will be ready only in three years, OUE has already started leasing talks with potential office tenants.

Such forward leasing action is common these days, given rising supply looming in the next 12 months and beyond.

A significant portion of OUE’s $530 million outlay will go to the Government for increasing the site’s allowable gross floor area and topping up the site’s lease from 75 years to 99 years.

Three floors in the new tower will be devoted to retail and the rest to offices. The entire block will have a total gross floor area of 45,158 sq m.

The development comes amid a boom time for office development, particularly in the business district, though there are concerns of an oversupply after 2010.

Rents have surged in the past year, with prime Grade A rents now hovering between $17 per sq ft (psf) and $18 psf.

‘There are now two market rates at work, depending on the occupation period,’ said Mr Donald Han, managing director of Cushman & Wakefield.

Rents at OUB Centre Tower 2, if already ready, could be about $18 psf. Forward rental rates for the same building, however, would be lower - possibly $15 psf to $16 psf - considering rising supply, he said.

True Yoga was in the headlines last month when sovereign wealth fund Dubai International Capital snapped up a key stake in the firm.
Source : Straits Times  - 10 May 2008

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Jakarta court rejects Temasek’s appeal

Jakarta court rejects Temasek’s appeal 
It upholds anti-trust ruling, orders firm to sell stakes in a telco
By Salim Osman, Indonesia Correspondent 
ST FILE PHOTO
 
JAKARTA - A JAKARTA court yesterday turned down an appeal by Singapore’s Temasek Holdings against a ruling by Indonesia’s business competition watchdog that it had violated the country’s anti-trust law.
The three-member Central Jakarta District Court ordered Temasek and its affiliates to sell their stakes in one of their two Indonesian telecoms units.

The panel also upheld a ruling that one of the mobile phone operators, Telkomsel, had charged ‘excessive’ tariffs.

Temasek Holdings said it was ‘deeply disappointed’ by the verdict.

Managing director of strategic relations Goh Yong Siang said in a statement: ‘The facts are Temasek has no shares in Indosat and Telkomsel, and plays no role in their business decisions and operations.

‘Telkomsel, in particular, is majority owned by PT Telkom, which in turn is majority owned and controlled by the Indonesian government.’

Temasek lawyer Todung Mulya Lubis gave notice that the company would appeal to Indonesia’s Supreme Court.

‘We are very disappointed,’ he told The Straits Times. ‘The decision is a bad signal to foreign investors. There is no legal certainty for foreign investment.’

But the court yesterday refused to overturn the decision, ruling that the decision by the business competition watchdog KPPU was fair and in line with existing law.

Presiding judge Andriani Nurdin said: ‘We found Temasek Holdings and its eight associated companies had violated Article 27 of the anti-trust law.’

Although it upheld the KPPU rulings, the court amended the penalties imposed on Temasek, its eight linked companies and Telkomsel.

It ordered Temasek to give up its stakes in one of the telcos within one year instead of the two years permitted in the original KPPU ruling.

The Singapore company also has the option of reducing its stakes by half in Indosat and Telkomsel. That was not an option provided in the KPPU ruling.

In divesting the shares, the court also said that Temasek can sell up to 10 per cent to any one party instead of 5 per cent as in the KPPU ruling. But the buyers cannot be affiliated to each other or to Temasek.

Judge Andriani also reduced the penalty of 25 billion rupiah to 15 billion rupiah (S$3.8 million to S$2.2 million) each for Temasek, its eight linked companies and Telkomsel.

But ST Telemedia lawyer Lucas expressed concern.

‘Our client has invested so much in Indonesia,’ he said. ‘We are deeply disappointed because there is no legal certainty to the investment put in by foreign investors.’

The case has been watched closely by foreign investors concerned about the risks of doing business in Indonesia.

The panel of judges took turns to deliver the judgment over two hours.

The panel supported the KPPU argument that it had the authority to investigate the Singapore companies despite all of them not being registered in the country.

‘This is a globalised world. A company can still be classified as operating a business in the country even if it is not set up in Indonesia. Based on the structure of the companies, we can conclude that they conduct business activities in the country,’ said Ms Andriani.

‘Temasek is the parent company having influence over business and policy decisions of the subsidiaries.’

But in Temasek’s defence, Mr Goh said in his statement: ‘Both Telkomsel and Indosat are regulated businesses, operating within the guidelines of the Indonesian Telecommunication Regulatory Authority.

‘It is therefore not possible for Temasek to engage in any monopolistic or anti-competitive practices in the Indonesian mobile telecommunications market.’
What it’s about

Singapore’s Temasek Holdings had appealed against last year’s ruling by Indonesia’s anti-monopoly watchdog, the KPPU, that it violated the country’s anti-trust law in its cross- ownership of Indonesia’s top two mobile telcos, Telkomsel and Indosat.

Indonesian law bans businesses from owning majority shares in more than one firm in the same sector if it gives them more than half the market share.

SingTel and its mobile subsidiary (54 per cent owned by Temasek) has a 35 per cent stake in Telkomsel. ST Telemedia (wholly owned by Temasek) owns 75 per cent of Asia Mobile Holdings, which has a 40 per cent stake in Indosat.

The KPPU ordered Temasek to give up its stakes in one of the telcos within two years. It also fined Temasek, SingTel, ST Telemedia, six other linked companies and Telkomsel, 25 billion rupiah (S$3.8 million) each.

Temasek argued that it has only indirect and minority stakes in the two telcos, and does not direct or control the investments and operations of ST Telemedia or SingTel.

Temasek also noted that the KPPU had approved the sale of the telcos earlier.

The case so far

October 2006: The Federation of State-Owned Enterprises Employees Union files a complaint against Temasek, alleging that it overcharged its mobile phone customers and that it held a monopoly in Indonesia’s mobile phone business. The KPPU investigates.

Nov 19, 2007: The KPPU rules against Temasek and its subsidiaries.

Dec 18, 2007: Temasek files an appeal. SingTel and ST Telemedia do the same a day later.

February 2008: The union says KPPU acted illegally by proceeding with the case even after it had withdrawn its initial complaint.

May 9, 2008: The court rules against Temasek, which says it will appeal and continue to seek legal redress.

VERDICT GIVES THE WRONG SIGNAL
‘We are very disappointed. The decision is a bad signal to foreign investors. There is no legal certainty for foreign investment.’
TEMASEK LAWYER TODUNG MULYA LUBIS

VERDICT IS ABSOLUTELY FAIR
‘This is a globalised world. A company can still be classified as operating a business in the country even if it is not set up in Indonesia… Temasek is the parent company having influence over business and policy decisions of the subsidiaries.’
PRESIDING JUDGE ANDRIANI NURDIN

Source : Straits Times  - 10 May 2008

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Courts to safeguard children in divorce - Singapore

Courts to safeguard children in divorce  - Singapore

New court to focus on child welfare in divorce proceedings; another to handle troubled teens

By Chong Chee Kin
 
THE father produced a picture drawn by his child, depicting the mother as a monster.
The mother produced her own. The same child drew the father as a monster.

Such ugly scenes in divorce cases - where the child is used as a ‘bargaining chip’ to settle other matters - are played out too often for the Chief Justice’s liking.

Said CJ Chan Sek Keong: ‘Parents who take an unnecessarily adversarial stand can worsen a dispute and obscure the real needs of the child. They often exacerbate their mutual hostility instead of focusing on the key issue of parental responsibilities.’

To ensure that children are not embroiled in their parents’ conflicts, a new Family Child Court, which will put the children’s interests before the adults’, will be set up later this year.

The need for such protection lies in the rising divorce numbers - from 2,673 in 2004 to 2,845 last year.

RELATED LINKS
 Resolving rows and accidents
Last year’s divorce cases involved about 4,500 children below the age of 18.

Chief Justice Chan wants the adversarial nature of the divorce process to move to a ‘quasi-inquisitorial’ one where a judge takes care of the proceedings from start to end.

For example, parents will not be allowed to file multiple affidavits blaming each other for the breakdown in the relationship.

Instead, they will be asked for their parenting plans and care arrangements for their children.

Family lawyer Foo Siew Fong from Harry Elias Partnership applauded the move.

‘In a custody battle, the children will be badly affected.

‘They will be torn by their loyalties to their parents, especially if the parents make them choose who they want to follow.

‘The children do not want to be in a position where they have to choose one parent over the other at the expense of making the other one angry.’

The Family Child Court initiative was announced yesterday at the Subordinate Courts’ workplan seminar, along with other major changes aimed at putting children high on the judiciary’s agenda.

The Chief Justice wants the Juvenile Court to focus on youth offenders only, rather than deal with them along with troubled teens.

The new Child Care Court, up on May 15, will handle children and teens who have been neglected or abused or who are beyond parental control.

Last year, 114 children were placed under Care and Protection Orders, up from just 39 in 2001.

Despairing parents who cannot control their charges have also sought the courts’ help.

There were 163 Beyond Parental Control cases last year, a drop from 190 the year before.

Mr Patrick Tan, managing partner of Patrick Tan & Associates, said: ‘Unlike those at the Juvenile Court, these children have not committed any offences, and it is timely to intervene and pull them back from the brink.’

Source : Straits Times  - 09 May 2008

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