COURT OF 3 JUDGES TO DECIDE IF LEE SUET FERN SHOULD BE DISBARRED

This article was first published on 11 August 2020 by the onlinecitizen at: https://www.theonlinecitizen.com/2020/08/11/court-of-3-judges-to-decide-if-lee-suet-fern-should-be-disbarred/

This Thursday, 13 August 2020, a Court of Three Judges will be considering whether Lee Suet Fern, a practising lawyer of 37 years' standing, should be disbarred for legal professional misconduct. 

Lee Suet Fern is the wife of Lee Hsien Yang and the daughter-in-law of Lee Kuan Yew. Lee Hsien Yang is one of the three beneficiaries of Lee Kuan Yew’s estate.

The charges of misconduct were brought against Lee Suet Fern by the Law Society of Singapore (the Society) following a complaint filed by the Attorney-General’s Chambers (AGC) to the Society on 4 December 2018.  As the complaint came from the AGC, the Society is by law mandated to apply to the Chief Justice to appoint a Disciplinary Tribunal. 

The Society’s charges against Lee Suet Fern relate to her involvement in the execution of Lee Kuan Yew’s Last Will signed on 17 December 2013.

From 20 August 2011 to 17 December 2013, Lee Kuan Yew made a total of seven Wills.  By operation of law, each new Will superceded the previous Will.  Lee Kuan Yew signed the Last Will on 17 December 2013.  Two lawyers came to Lee Kuan Yew’s house to witness his execution of the Last Will. 

On 2 January 2014, Lee Kuan Yew on his own prepared and signed a Codicil to his Last Will.  He arranged his own witnesses.  A ‘codicil’ is a formally executed document made after a will that adds to, subtracts from, or changes the will.  The Codicil bequeathed two carpets to Lee Hsien Yang.

Lee Kuan Yew passed away on 23 March 2015. Probate was granted on the basis of the Last Will on 6 October 2015.

On 13 February 2019, two practising lawyers, Sarjit Singh Gill and Yee Kee Shian Leon, were appointed by the Chief Justice as the Disciplinary Tribunal to hear and investigate the Society’s charges against Lee Suet Fern.

The issues at stake before the Disciplinary Tribunal were essentially:

1.       Whether Lee Suet Fern and Lee Kuan Yew stood in a solicitor-client relationship i.e. was there an Implied Retainer; and 

2.       If Lee Kuan Yew was her client, did she fail her client to the extent of professional misconduct.

Lee Suet Fern pleaded not guilty to all the charges.  The Disciplinary Tribunal conducted a five-day hearing from 1 to 5 July 2020.  During the hearing, Lee Suet Fern and Lee Hsien Yang were cross-examined on the witness stand by the Society’s lawyers on their testimonies. 

On 18 February 2020, the Disciplinary Tribunal released their decision.  The Disciplinary Tribunal concluded Yes on the two questions.

The Disciplinary Tribunal agreed with the Society that Lee Suet Fern and Lee Kuan Yew stood in a solicitor-client relationship.  The Disciplinary Tribunal said that Lee Suet Fern had failed to advance her client’s interest, instead she had promoted her own interest and/or the interest of her husband, Lee Hsien Yang ahead of her client's interest. She also failed her duty to advise Lee Kuan Yew to be independently advised in respect of his intention to give a one-third share of his estate to Lee Hsien Yang. 

Given the Disciplinary Tribunal’s findings against Lee Suet Fern, the Court of Three Judges will now determine if the Respondent should be disbarred.

 The Society's case against Lee Suet Fern is about a solicitor's legal professional duties, how a solicitor should conduct himself when he deals with his client and what amounts to professional misconduct. 

The Society's case against Lee Suet Fern is not about whether Lee Kuan Yew was aware or unaware the Last Will contained the Demolition Clause.   In a statement published by the AGC on 7 January 2019 to announce that the AGC had filed a complaint of professional misconduct involving Lee Suet Fern, the AGC stated that their complaint did not relate to the validity of Lee Kuan Yew’s Last Will.

Doubts as to whether Lee Kuan Yew was aware his Last Will contained the Demolition Clause was publicly raised by Lee Hsien Loong on 15 June 2017 who said a “series of events led me to be very troubled by the circumstances surrounding the Last Will.”

Notwithstanding Lee Hsien Loong had publicised his unhappiness with Lee Suet Fern’s involvement in the execution of Lee Kuan Yew’s Last Will, Lee Hsien Loong is not the Complainant nor a party to the proceedings against Lee Suet Fern. 

As earlier mentioned in this article, the case against Lee Suet Fern was initiated by AGC.  More accurately, it was filed by Deputy Attorney-General Lionel Yee, as Attorney-General Lucien Wong had recused himself from the case against Lee Suet Fern. Lucien Wong had been Lee Hsien Loong’s personal lawyer prior to becoming the Attorney-General.

In their 7 January 2019 statement, the AGC referenced their statutory duty to deal with misconduct by lawyers as the basis for filing their complaint against Lee Suet Fern. The AGC said that when the AGC becomes aware of possible professional misconduct, it is required to consider if the matter should be referred to the Society.  In this case, AGC became aware of a possible case of professional misconduct by Lee Suet Fern. The AGC statement did not say how the AGC became or was made aware of possible professional misconduct by Lee Suet Fern in respect of the execution of Lee Kuan Yew’s Last Will.

Notwithstanding Lee Hsien Loong’s misgivings with Lee Suet Fern’s involvement in the execution of Lee Kuan Yew’s Last Will, the focus of the Disciplinary Tribunal was on what Lee Suet Fern should or should not have done, rather than on whether Lee Kuan Yew was aware or unaware of the Demolition Clause when he signed the Last Will.

The Court of Three Judges hearing the case this Thursday comprises Chief Justice Sundaresh Menon,

Justice Judith Prakash and Justice Woo Bih Li.

Although the next step following the Disciplinary Tribunal’s findings against Lee Suet Fern is for the Court of Three Judges to decide if Lee Suet Fern should be struck off the roll, the powers of the Court of Three Judges are not limited to that role. 

The Court of Three Judges is not bound to accept the findings and decision of the Disciplinary Tribunal.  If the Court of Three Judges does not agree with the decision of the Disciplinary Tribunal, it has the power to set aside the determination of the Disciplinary Tribunal, direct Disciplinary Tribunal to rehear and reinvestigate the complaint, or even order the appointment of another Disciplinary Tribunal to hear and investigate the complaint.

We shall see in the coming days whether the Court of Three Judges agrees with Disciplinary Tribunal’s conclusions or not; and if the Court does, then whether the Court considers it would be an appropriate sanction to strike Lee Suet Fern off the roll.

Jeannette Chong-Aruldoss is a practising lawyer of 30 years’ standing.  Wills & Probate is one of her areas of specialisation. 

UNCONSCIONABLE TO HOLD GE AT THIS TIME

Today, Singaporeans are facing the closest thing to war since our nation gained independence. We are fighting an invisible enemy which moves in stealth and strikes in unpredictable ways. Our everyday lives are disrupted. We are hunkering down in preparation for a siege of uncertain duration.

In this unprecedented time, we are looking towards our government to lead us. We will have to trust in the judgment of our elected leaders.

I only have good things to say about how our leadership has been managing the COVID19 crisis - until now.

For despite the fact that we are in the midst of battle, the PAP Government has all but announced that the next General Election (GE) will be held within the next two months. This is crazy. Why the rush to hold the next GE?

The PAP Government is giving the explanation that the COVID19 crisis is not going to be resolved anytime soon, so we better hold the GE now than later.

I beg to differ. Two weeks ago, I would have been prepared to go along with the "let's do this now, rather than later" rationale. Looking at what is happening as we speak, I think the window - the figurative "calm before the storm" - has closed. We are now not only in battle mode but also bracing for the battle to escalate in the days ahead. Holding the GE at this juncture cannot but serve as a distraction when all efforts must be focused on managing and coping with the COVID19 crisis.

General election is a defining event in a democratic society. Leaders and citizens are required to give their due attention and focus on the electoral process. Once elected, our leaders have authority over our lives and livelihood for the next four to five years. It would be a betrayal of our nation's values as enshrined in our Constitution for the Prime Minister's Office to relegate the GE to a passing formality, to treat such a crucial event as something that we need to "get out of the way". If neither the incumbent nor the citizenry have the bandwidth to give sufficient attention to the electoral process, then the responsible thing to do is to defer it to a better time.

Many concerned citizens have already spoken out against holding the next GE and to urge the Prime Minister to defer the GE until the crisis has abated. They have also said that they would not fault the PAP Government if the next GE is deferred beyond the statutory deadline of April 2021. With so much as stake, I feel compelled to add my voice in support of such views.

I do believe that we will eventually prevail over this crisis. It is only a matter time that we learn more about and understand better the enemy and its ways. Effective mitigating techniques and countermeasures like vaccines will eventually be developed. The element of surprise can only be used once. So, I think the better wisdom is to defer the GE for at least another year.

Our nation identifies itself as being a democracy. Democracy is all about the citizenry being able to choose our leaders. If we go to the polls within the next two months, I feel it will be tantamount to the incumbent holding our citizens to ramson: vote us back, or else you will be at the mercy of COVID19. The incumbent is already in the driver's seat in the COVID19 battle and we are depending on them to lead us out of the woods. For anyone wishing to capitalize on the reluctance to change the status quo and to leverage on the fear of succumbing to the physical and economical impact of COVID19, now is the best time.

When votes are cast in fear of life and livelihood, is the election free and fair?

Are we upholding the tenets of democracy to hold the GE at the time when Singaporeans are facing their worst crisis in the history our nation?

Is it conscionable for the PAP Government to hold the GE at this time?

Jeannette Chong-Aruldoss

Resignation from the Singapore People's Party

On Monday 2 Sep 2019, I handed in my resignation from the Singapore People's Party (SPP). I did so after much thought and careful deliberation.

I would like to take this opportunity to thank Mrs Lina Chiam for her guidance, counsel and mentorship.

I am also very grateful for the support given by SPP members, several of whom I have become good friends with. I hope we will remain good friends.

I wish SPP, Mr & Mrs Chiam and SPP members all the best in their future endeavours.

I entered politics in 2009 because I was convinced that the PAP held too much power and I was worried for Singaporeans. I felt that we desperately needed more opposition in Parliament to redress the imbalance.

My convictions have not changed. If anything, I feel more strongly than ever that we must have more non-PAP MPs in Parliament. The fight for more political balance remains urgent and imperative.

There are many ways to serve my country and to serve Singaporeans. I hope to continue serving the cause of Singaporeans in one way or another.

Jeannette Chong-Aruldoss

This announcement was first published on my Facebook page on 4 September 2019.

Mandarin Gardens en bloc siege ends with 64.46% consent, not 68%

The Mandarin Gardens en bloc attempt is officially over. The required 80% was not achieved within the prescribed time frame, so the tenure of the Collective Sale Committee (CSC) expired on 24 March 2019.

As per the lawyers' official notice dated 23 March 2019, the level of consent to the collective sale was 64.46% in the final tally.

However, the CSC Chairman's Final Message on 24 March 2019 (the day of its expiry) cited the figure 68.34% - a figure which includes partially signed units.

Legally, only fully signed units are counted in when computing the percentage required by law. Partially signed units have no legal relevance.

In the Final Message, the CSC also thanked "all the approximately 70% SPs who voted for the collective sale". As only 64.46% was achieved, there is no "approximately 70%" support to speak of.

The figure cited in the Final Message appears to have been picked up by Straits Times. Their article on Mandarin Gardens' failed enbloc attempt published on 26 March 2019, gives the wrong impression that the CSC achieved 68% consent.

For the record, the percentage achieved at the end of the day was 64.46%. And that is the true and legally relevant figure to remember and take note of.

THE PEOPLE’S VOICE OR THE PAP’S VOICE?

The troubling spectre of elderly Singaporeans doing menial jobs like cleaning toilets, pushing rubbish carts, collecting cardboards and wiping tables at hawker centres, has become all too common these days and doubtless weighs heavy on the minds and conscience of many Singaporeans.

Financial Support for the Elderly Poor

Voicing questions which I believe many of us have, a concerned resident took the mic at a South-East Community Development Council (CDC) conference on 2 Aug 2018 [1] to ask whether elderly Singaporeans were being forced to work at manual jobs “just to survive” and whether the Government could provide a pension scheme to meet the basic financial needs of the elderly.  He also wondered if such a pension scheme could be funded by a marginal cut on the defence budget or by cutting Ministerial salaries by 10%.

As the resident from Braddell Heights, put it: “I think not many people will believe you if you say that elderly work because they want to mix, because they want to do exercise. Perhaps they work because they need to work."

Grassroots Adviser Lim Biow Chuan responded to the resident’s concerns as follows:

1. For the elderly, the Government has the Silver Support Scheme, which “does help quite a number of our seniors”;
2. For low-income citizens, “the Government does take quite good care of you. There are actually many, many schemes to help look after those who are poor”; and
3. For elderly who are not poor but wish to work, “I personally think it is a good thing, because if not, then what do you expect the elderly to do at home?”

Wearing Two Hats

To best understand Lim Biow Chuan’s response, we need to recognise that he wears two hats. He is both:

1. Adviser to Mountbatten Grassroots Organisations under the People’s Association (PA); and
2. Member of Parliament (MP) for Mountbatten SMC.

The two hats are distinct roles, which do not fit as one.

The role of an MP is to be the voice of the people in Parliament. The MP’s job is to channel feedback, grievances and issues from his constituents to the government of the day.  Voters expect their MPs to advocate their concerns, to champion their issues and to hold the Government accountable for their decisions and for their deployment of public funds.  

On the other hand, the PA’s key role is to promote, explain and defend government policies and programmes to Singaporeans.  In effect, the PA is the Government’s apologist i.e. the Government’s defender and spokesperson. The Grassroots Adviser’s job is to help the PA to carry out its said role.

Clearly, the MP’s role is set to clash with his concurrent job as Grassroots Adviser when it comes to unpopular Government policies.  While voters expect their MPs to champion their grievances with Government policies, the PA expects their Grassroots Advisers to promote and defend those very same policies.   

The fact that the two hats do not fit as one, is proven by the PA’s refusal to appoint non-PAP MPs as their Grassroots Advisers.  The PA has flatly refused to have non-PAP MPs as their Grassroots Advisers on the basis that non-PAP MPs cannot be expected to champion all Government policies - good and bad - in the way that PAP MPs can be relied on to do so.[2]

The Braddell Heights resident raised a very valid concern, but the occasion on which he raised his concern was at a Southeast CDC Conference. CDCs are part of the PA.  

I do not blame the Braddell Heights resident if he was confused. He saw his MPs before him and he must have thought that as his MPs they would listen, carry his voice to Parliament and advocate for change.

“the Government does take quite good care of you”

Instead, the resident got a show-and-tell. Right on the mark, Lim Biow Chuan responded to the resident by assuring him that the Government already has the Silver Support Scheme, which “does help quite a number of our seniors”; and for low-income citizens, “the Government does take quite good care of you. There are actually many, many schemes to help look after those who are poor”.

After explaining what the Government was already doing for the elderly and the poor, Lim Biow Chuan then went on to exhort his listeners not to shirk from their own personal responsibilities towards their aged, by saying:

“My sense is always that we shouldn’t always look to the government to solve the issues of the elderly. It is every child’s responsibility to look after their parents, because your parents looked after you when you are young. To all those who are getting elderly, I hope that you don’t think that your children should not look after you. These are their responsibilities. And this is what filial piety is all about."

Of course, children have a moral duty to care for their parents. But the Government also has a social responsibility towards the elderly.  Taking care of the elderly is a joint responsibility of both the young and the State. 

The needs of the elderly encompass medical, physical, emotional as well as financial.  Indeed, very few of us can comfortably shoulder the entire burden of all those needs.  It is not unreasonable to expect the State has to share a meaningful portion of the burden.  After all, we pay a lot in taxes and we expect our hard-earned monies to be spent on the public.    

Instead of calling on the Government do to their part and to do more for the elderly, we see the MP asking his constituents NOT to look to the Government to solve the issues of the elderly.  The MP was more focussed on ensuring that the individual does not shirk his personal responsibility for his parents. I would have preferred my MP to be more bent on ensuring that our Government does not evade their responsibility towards our elderly citizens.

“Ministers are not paid enough”

What the Braddell Heights resident wanted to know, was whether the Government could alleviate the financial hardship of the elderly by a pension scheme, and whether the pension scheme could be funded by reducing Ministerial salaries.

As if to ensure that any thought of cutting Ministerial salaries is buried 6 feet underground, Lim Biow Chuan’s tag team-mate, Grassroots Adviser Goh Chok Tong took the mic to rebuke the resident for suggesting Ministerial salaries be cut to fund a pension scheme for the elderly:

“Had you suggested to up GST by 2 per cent and give them the pension, I would have applauded you. Seriously. Because you are then taxing the whole society to support older ones. But you did not. You said cut from defence, 1 per cent is enough. And on top of that, you said cut Ministers’ salaries. That is very populist. I am telling you the Ministers are not paid enough, and down the road, we are going to get a problem with getting people to join the government, because civil servants now earn more than Ministers. Are you aware of that?”

Citizens are short-changed

Citizens need to know that when they vote in a PAP MP, they are adding staff to the PA’s already well-staffed and well-funded Machinery, a Machinery designed to defend the Government’s decisions and to convince citizens to accept them. 

Having been co-opted into the PA, PAP MPs cannot fully perform their role as your voice in Parliament. They cannot challenge Government policies, ask difficult questions or hold the Government to account for how they deploy public funds, without having regard to their obligations to the PA – which is on top of their obligations to the Party Whip.

Citizens need to know that when PAP MPs go around their constituency making house visits and meeting residents, they do so in their capacity as Grassroots Advisers, not as political MPs. 

House Visits by Grassroot Adviser

As Grassroots Advisers, their job is to promote, explain and defend existing Government policies.  Even questionable policies - such as sky-scraper high ministerial salaries and shamefully inadequate help for the elderly poor – stand to be vigorously defended by PAP MPs working with the PA Machinery.   

Citizens need to know that so long as the PA continues to appoint PAP MPs as their Grassroots Advisers, and thereby co-opting them into their Machinery to bolster their role as the Government’s apologist, constituents will be denied the full measure of the advocate, activist and political leader that they had voted for. 

We are short-changed. Instead being the People’s Voice, our PAP MPs defect from serving our cause to become the PA’s Voice.  Bearing in mind that the PA are servants of the PAP Government, the PAP MPs end up as the PAP’s Voice. 

Cloaked by the pretext of promoting social cohesion, the PA has the effect of distorting our democratic system to the advantage of the ruling party.

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[1] "Goh Chok Tong’s speech defending high ministerial pay and defence budgetat grassroots event", 5 Aug 2018 The Online Citizen

[2] "PAstands firm over selection of grassroots advisers", 2 Sep 2011, Jeanette Tan, Yahoo

OUR RESPONSIBILITY TOWARDS EX-OFFENDERS

I read with a mixture of intrigue, cheer and dismay the letter from Mr Sunny Lee, Director, Media Relations, Community Partnership and Communications Group, Ministry of Home Affairs (MHA) captioned "Score focused on securing jobs for ex-offenders" published in The Straits Times Forum page on 16 June 2018. [1]

INTRIGUE.

I am intrigued by Mr Lee saying, in reference to The Straits Times article captioned MP Lim Biow Chuan clarifies comments on former offender's job snub, calls for 'proper conversation' published on June 10, 2018 [2] (the June 10 article):

“Unfortunately, it does not state the position accurately.”

Yet, curiously, Mr Lee did not go on to clarify what is "the position" which the June 10 article stated inaccurately nor explain in what way the June 10 article stated "the position" inaccurately.

Instead, Mr Lee went on to detail the efforts of The Singapore Corporation of Rehabilitative Enterprises (SCORE) in helping ex-offenders find jobs. 

What is clear is that the June 10 article is a summary of Mr Lim Biow Chuan’s arguments justifying job curbs on ex-offenders, especially for a security officer's job.

The June 10 article highlighted several aspects of Mr Lim’s arguments, such as Mr Lim noting that while it was easy to say that the police should give ex-offenders a second chance, the reality is that "most of us would err on the side of caution".

The June 10 article also featured Mr Lim’s comments where he compared a convicted child molester with a person convicted of assault:

"...we would not want a convicted child molester to teach swimming to young children; we would also not want a person convicted of dishonesty to be involved in finances or accounts of a company ... Along the same principles, we would not want a person convicted of assault to be employed as a security officer protecting the residents."

Mr Lim’s comments expressed a tough stance against ex-offenders in the interest of public protection. Whose views is he representing- MHA, the general public or perhaps his own?

The concerns about hiring ex-offenders expressed by Mr Lim can hardly be helpful to SCORE, a MHA agency.  In fact, such negative attitudes about ex-offenders must surely undermine and hinder the efforts being made by SCORE to help ex-offenders find jobs. Which may perhaps be why MHA has stepped into the public square with Mr Lee’s letter. So, I don’t think that Mr Lim is representing MHA’s views.

Mr Lim’s remarks generated some controversy and many detractors have voiced their disagreement with his views about ex-offenders. So, I have to surmise that Mr Lim’s views do not represent the general public.

Hence, Mr Lim may well be representing his own views or the views of a segment of our society who are privileged to be among those who have never broken the law.

It is telling that Mr Lim uses the ‘us versus them’ stance in his comments, referring to “we” on the one side and “the ex-offenders” on the other side. As much as some may want to take comfort in the description, “we are not like them”, that is ultimately a false dichotomy which belies the truth that ex-offenders are members of our society. Being so, they matter and their well-being are our collective responsibility.

The trouble is, Mr Lim’s cautionary comments against employing ex-offenders appear more reflective of fears than of fact and serves more to affirm prejudice than to spur constructive public discourse.

For example, Mr Lim’s rhetoric question "The concern of police would always be, what if the offender re-offends?" does not square with the fact that most ex-offenders do not re-offend. In 2016, the Singapore Prison Service (SPS) reported that overall recidivism rates have remained "low and stable".  

Moreover, the rate of re-offending is directly related to how society treats and re-integrates ex-offenders:

“Rehabilitation and reintegration work does not simply stop at the end of an inmate's jail term but continues into the community, said Mr Rockey Francisco Jr, who is the director of SPS' Community Corrections Command. "It's what they do outside that counts, (which is) most importantly, to stay crime free and to not re-offend," he said, while stressing the importance of community partnerships in ensuring that inmates do not go back to their old ways.”

(Recidivism rates remain 'low and stable'due to strong community support for inmates: Prison Service, ST Feb 17, 2016)[3]

Barriers to re-integration, such as job restrictions and social stigma contribute to higher rates of re-offending. The end result is a vicious cycle and a fractured society.

Imprisonment serves the fourfold purposes of punishment, deterrence, incapacitation and reformation.  The mission statement of SPS states that it is a correctional agency which enforces secure custody of offenders and rehabilitate them, for a safe Singapore.  It is not misplaced to have some confidence in SPS’s ability to fulfil their mission of deterrence and rehabilitation.  When someone has served his time and has been released from jail, it is not unreasonable to expect that he would want to keep out of jail. 

If one were to follow the line of Mr Lim’s argument as reflected in the June 10 article, one would come away with the impression that the police would not and should not allow anyone with a criminal record to ever be employed as a security officer to err on the side of caution in the interests of ensuring public safety.

CHEER.

I am cheered by Mr Lee’s letter because it clarifies that the job restrictions imposed by MHA against ex-offenders are not absolute or permanent, even for a security officer’s job.  According to Mr Lee:

“… depending on the severity and relevance of the offence, a person with crime antecedents is required to remain offence-free for some time, before he can take up certain jobs, including the job of a security officer”.

It is heartening that a degree of forgiveness is being shown and practised by MHA.  

But answers from MHA are still needed by ex-offenders for such questions as:

1.       What kind of jobs would MHA seek to "protect the public" from and be deemed as being unsuitable for ex-offenders to work in?

2.       What convictions would restrict ex-offenders from taking up which kind of jobs?

3.       In respect of an ex-offender convicted of a certain offence, how long would he have to wait before his past conviction ceases to affect his job opportunities?

Ex-offenders would greatly benefit from knowing the extent of the job restrictions applicable to them.  It hoped that MHA would give ex-offenders more information on the MHA policies affecting them and more transparency in their screening processes, so that ex-offenders can manage their expectations and not be set up for disappointment when they hope, apply and fail in their job application.

That said, it is encouraging that Mr Lee’s letter affirms MHA’s commitment to help ex-offenders reintegrate into society.

However, the silver lining in Mr Lee’s letter is marred by a dark cloud of inexcusable indiscretion.

DISMAY.

I am dismayed by Mr Lee's indiscretion in mentioning the actual name of the Potong Pasir resident in his letter, knowing full well that his letter is for public consumption.  Up to now, the resident has not been identified to the public.   

The resident has served his prison term. He has paid his debt to society. Yet, after his release from prison, he faces difficulties like job restrictions and social prejudice. This was the predicament which Mr Jose Raymond raised to public awareness by his Facebook post of 6 June 2018 [4].  When doing so, Jose Raymond made sure to withhold the identity of the resident to protect his privacy.

Even though Mr Jose Raymond’s post went viral, the resident has remained anonymous, up to now. Ironically, an MHA Director of Communications has exposed the resident's identity to the public.  

Surely one would expect a communications expert, with MHA no less, to be cognisant of the adverse consequences of publicising someone’s identity, let alone someone who is already suffering the social stigma of being an ex-convict.

I am also disappointed with the ST forum editor for not picking up and correcting Mr Lee's failure to anonymise the resident. I have known ST forum editors to assiduously scrub and revise letters, especially letters which express dissenting views. I hope it is not the case that the ST forum editors lapsed their usual diligence and posted Mr Lee’s letter without review, simply because the letter came from a MHA media rep.  If that were the case, then it would only serve as evidence of groupthink.

Mr Lee’s remiss notwithstanding, his letter reminds that we have a responsibility towards ex-offenders.  

Of course, the needs of the few (in this case, ex-offenders) have to be weighed against the needs of the many (i.e. the public interests).  To “err on the side of caution” is a valid policy, but its end result is zero tolerance and exclusion.  It is a harsh society which allows the concerns and needs of the majority to hold full sway over those of the minority.  Policies must serve society as a whole, not just a majority of - or worse, the more powerful in - society.  Policies which serve the interests of the majority at the expense of the minority do not necessarily serve the greater good of society.  Rather, the greater good is served when policies reflect the principles, ideals and aspirations which identify our society.

Policies affecting ex-offenders should give expression to principles like forgiveness, those who make mistakes deserve a second chance and everyone matters.

It is the responsibility of the privileged to care for the less privileged. When we take care of the lesser and least among us, we are a better society. And that is the greater good.

Jeannette Chong-Aruldoss

18 June 2018

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[1] https://www.straitstimes.com/forum/letters-in-print/score-focused-on-securing-jobs-for-ex-offenders

[2] https://www.straitstimes.com/politics/mp-clarifies-comments-on-former-offenders-job-snub-calls-for-proper-conversation

[3] https://www.straitstimes.com/singapore/courts-crime/recidivism-rates-remain-low-and-stable-due-to-strong-community-support-for

[4] https://www.theonlinecitizen.com/2018/06/06/spf-rejects-application-of-ex-offender-to-be-security-officer-writes-he-is-not-a-fit-and-proper-person/

SHOULD WE BRING BACK ESTATE DUTY?

On 19 November 2017, Prime Minister Lee Hsien Loong announced that the PAP Government is planning to increase taxes. [1] His announcement fuelled wide speculation of an imminent hike in Goods and Services Tax (GST).

GST is a tax on domestic consumption. The tax is paid when money is spent on goods or services, including imports. GST is not applicable for sales and leases of residential properties, importation and local supply of investment precious metals and most financial services.

GST was first introduced in Singapore on 1 April 1994 at 3%. The GST rate was increased to 4% in 2003, to 5% in 2004 and to 7% in 2007. GST currently stands at 7%. 

On 29 November 2017, The Business Times reported: "The Goods and Services Tax (GST) is likely to be raised by two percentage points in the coming years as Singapore's spending needs continue to grow, according to DBS senior economist Irvin Seah."[2]

It is important to note that GST is considered to be a regressive tax.  A regressive tax is one where the poor pay more tax, as a percentage of their income, than the rich. GST is a tax on consumption.  Generally, poorer households spend a greater proportion of their income on consumption compared to higher income households. So, when tax is based on consumption, the poor would end up paying more tax, as a percentage of their income, than the rich.

The fact that GST has remained the same since 2007 makes it the easiest target to hit in the hunt for additional revenue.

If taxes must be raised, two types of taxes which impact richer Singaporeans more than poorer Singaporeans come immediately to mind.     

1.       CAPITAL GAINS TAX

Capital Gains Tax (CGT) is a tax levied on the profits a person realizes when he sells his asset for a price that is higher than the original purchase price.

There is no CGT in Singapore. The gains derived from the sale of a property in Singapore are not taxable. (Exception: when a person is deemed to be trading in properties, the gains from the sale of property in Singapore is considered taxable income.) Likewise, no tax is payable on profits derived from the buying and selling of shares or other financial instruments.

Singapore has been a "No CGT" city for the longest time that I think "No CGT" has become a sacred cow - never to be slaughtered!

2. ESTATE DUTY

Estate Duty (ED) is a tax on the total market value of a person's assets (cash and non-cash) at the date of the person's death. Beneficiaries will receive their share of the deceased's estate net of ED. 

The British introduced ED into our tax system. The rationale for ED is to prevent accumulation of wealth. The aim is to encourage asset-rich people to distribute their wealth during their lifetime in order to minimise ED. If you die a pauper, there will be no ED; if you leave behind millions to your loved ones upon your death, your estate will attract ED.

While Singapore never had CGT, we had ED all while, until it was abolished in 2008.

In 2008, Minister for Finance Mr Tharman Shanmugaratnam (MOF) informed Parliament that he had decided to remove ED for deaths on and after 15 February 2008.

In announcing his decision to abolish ED, MOF said:

"Proponents of removing estate duty have therefore argued that removing it would encourage wealthy individuals from all over Asia to bring their assets into Singapore, thus supporting the growth of the wealth management industry. Ordinary Singaporeans have also argued that having worked, paid taxes on their income and property, and built up their savings, they want to be able to pass it on to their families. Some are in fact liable for estate duty when their estates receive large life insurance payouts."

 - BUDGET STATEMENT 2008 delivered in Parliament on 15 February 2008 by Mr Tharman Shanmugaratnam, Minister for Finance, Singapore (Para 4.71 to 4.79)[3]

At the end of the day, the abolition of ED was not up for debate in Parliament. Rightly or wrongly, it was the prerogative of the MOF to decide whether to continue, modify or abolish ED.  The MOF decided to do away with ED and it was so. 

When a person dies and leaves property to beneficiaries, the beneficiaries gain a windfall. The share of the deceased's estate comes to him as a gift.  He did not have to work for the benefit.  

In comparison, earned income is taxable. For every dollar earned and worked (for which time was spent and effort made), a certain portion must go to the State (subject to applicable exemptions and allowances).  So taxing earned income and taxing gifts have very different impact on a person. 

• ·         Was the removal of ED applauded by asset-rich Singaporeans? 
• ·         Is a “No ED” regime more beneficial to the rich?
• ·         Have Singaporeans on the whole benefitted from and continue to be better off, without ED?

Interestingly, ED (if we have it) would only tend to affect a minority of Singaporeans i.e. the wealthy and beneficiaries of the wealthy.

CGT (if we have it) would only affect those who have capital (money, assets) in the first place and make money from capital. 

Income tax is imposed on people who work and on companies which are profitable.

GST affects all Singaporeans (whether you work or don’t), but impact poorer Singaporeans more.  

If the Government needs more money, we should consider whether the rationale for removing ED continues to apply and whether it would be beneficial to the collective interests of Singaporeans to bring ED back - or more pertinently, introduce an updated form of ED - in preference to increasing GST.

By Jeannette Chong-Aruldoss

30 November 2017

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[1] http://www.straitstimes.com/singapore/spore-to-raise-taxes-as-govt-spending-increases

[2] http://www.businesstimes.com.sg/government-economy/gst-hike-by-how-much-and-how-soon

[3] http://www.singaporebudget.gov.sg/budget_2008/speech_toc/downloads/FY2008_Budget_Statement.pdf

Khoo Teck Puat died 21 February 2004, his estate was liable for Estate Duty

Kwa Geok Choo died 2 October 2010, after the abolition of Estate Duty