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AN N U A L R E P O R T 2 0 1 6

YEARS OF SERVING THE COMMUNITY


The ASSOCIATION OF MUSLIM

AMP is a registered charitable organisation

PROFESSIONALS (AMP) was

and is accorded the status of an Institution

established on 10 October 1991, as an

of a Public Character.

important resolution of the First National Convention of Singapore Malay/Muslim

AMP is guided by its core principles of

Professionals which was held on 6 and 7

being independent, non-partisan and

October 1990. The Convention was

working in critical collaboration with all

attended by 500 Malay/Muslim

parties that share its mission to bring about

professionals who met to brainstorm new

a Dynamic Muslim Community in the 21st

directions for the community. AMP

century. AMP will partner with any player

was formed with core programmes in

who identifies with and supports AMP’s

education, human resource development,

mission in society and will support

social development and research.

government policies which serve to advance the community and the interest of the people at large.

ASPIRATION FOR THE COMMUNITY

CORE VALUES

A dynamic Muslim community

Conviction

Creativity

We are committed to serve the community

We champion creativity and dare to

with passion. We take pride in our role in

explore new ideas to overcome

the society.

challenges.

Integrity

Team-Oriented

We place community interest before self

We work as a team, believe in shared

and maintain high moral values and

responsibility and value partnerships with

discipline.

others.

VISION A model organisation in community leadership

MISSION To be a thought leader, problem solver and mobiliser for the

Professionalism

advancement of the community

We aim for excellence in our work and add value to what we do.


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CONTENTS 01

03

Message from Chairman

Message from Executive Director

05

07

The AMP Group

AMP Board of Directors

09

AMP Board Committees

10

Ready for School Fund Management Committee

10

AMP Management Team

11

Divisions of AMP

13

15

Young AMP

Muslim Expatriates Network

17

19

Centre for Research on Islamic and Malay Affairs

MERCU Learning Point

21

31

Our Programmes & Services

Our Clients & Beneficiaries

32

33

Our Income & Expenditure

Our Significant Milestones

35

38

Our Partners

Directors’ Report & Audited Financial Statements


MESSAGE FROM CHAIRMAN

This year marks AMP’s Silver Jubilee and

Engaging Professionals

for it to happen in my first year as

Rallying and engaging professionals to

Chairman of the Group is an honour.

play a role in providing intellectual leadership for the community was one of

AMP has been a part of my life since

the main reasons why AMP was formed

before its formation in 1991. About two

25 years ago. Moving forward, we are

years earlier, I was asked to join in the

looking at engaging more professionals to

planning for the 1st National Convention

join us in playing this role of being the

of Singapore Malay/Muslim Professionals

conscience of the community. We want to

and later, as a member of the Pro-tem

provide a platform to promote intellectual

Committee to form AMP. I agreed then

discourse among professionals, where

because I thought it would be a meaningful

they can come together and exchange

way for me to contribute to the community.

ideas, views, insights and experiences on

Two and a half decades later, AMP is still

current national issues. It is hoped that

very much a part of me, and it remains

through this, our professional community

one of the main platforms through which

can play a bigger role in steering the

I am able to do my share to contribute to

Malay/Muslim community into the future.

the community’s long-term progress. Providing thought leadership, which is one I have seen AMP chart tremendous growth

of AMP’s strategic thrusts, is something

over the last 25 years – from the earlier

that we intend to continue in the years

years when we were unsure if AMP could

to come.

continue its operations, to what it is today – one of the leading Malay/Muslim

Preparing for the Future Economy

organisations in Singapore, well-recognised

The economy of the future is one that is

for its efforts to uplift the Malay/Muslim

unpredictable and AMP intends to help the

community; a force to be reckoned with.

community through this time of uncertainty. We are in the midst of assessing areas in

This year is an important year for us. The

which we can help prepare the community

Board has decided that as this year marks

for the future economy, be it in education,

AMP’s Silver Jubilee, it is an opportune

training, or other areas.

time to step back and reflect on the progress we have made thus far, and to chart out AMP’s path for the coming years.


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We will work with the relevant stakeholders

Our experience with working with NYC

I hope that this support from the community

to develop initiatives aligned to the

had shown that the issues faced by the

continues for the next 25 years and

recommendations of the Committee on the

community cannot be faced in isolation,

beyond. The future remains bright for the

Future Economy aimed at building

but in conjunction with all national efforts.

community and AMP intends to continue

resilience amongst our youths and PMETs

As such, the spirit of collaboration is

playing a part in the community’s

to face the tough economic times head on

critical to our development as a community

successes in the coming years.

and prepare for the future economy.

and nation. This is just one example of how partnering and working with

Taking it to the Next Level

national-level organisations can enrich

AMP is not an organisation that is happy

our knowledge of not just the Malay

ABDUL HAMID ABDULLAH

to rest on our laurels and remain status

community, but the Singaporean society

Chairman

quo. We are an organisation that likes to

as a whole. This, in turn, will help us to

AMP Group

push our boundaries and continue

better serve our community in the future.

redefining success for ourselves. Our Supporters While we have focused our efforts mostly

However, our plans can only be realised

on the community, we will now extend our

if we have the support of the community.

focus beyond that. We will continue to

Over the past 25 years, AMP has grown

serve the community and its needs, but

larger as a group and has become

there is much for us to learn from national

financially stronger, progressive and

agencies and organisations.

innovative in running our programmes and services. This is made possible largely

This was apparent from our collaboration

because of our activists, volunteers,

with the National Youth Council (NYC) to

donors, sponsors and partners. They,

organise the CommaCon in October,

who share our vision of a brighter future

which was a convention for youths of all

for the community, are the ones driving us

races to come together to discuss sensitive

towards our goals.

issues such as socio-economic divide, racism, national identity and even terrorism, openly and honestly. This is the first time such a youth conference has been organised at a national platform to discuss these issues and where the lead initiator was a Malay/Muslim organisation.


MESSAGE FROM EXECUTIVE DIRECTOR

When the pioneer members of AMP first

governance policies and transparency

gathered at the 1st National Convention

standards are robust. We were recently

of Singapore Malay/Muslim Professionals

recognised for these efforts when we were

in 1990, the impetus was to advocate for

awarded the Charity Transparency Award

change within the community for its

2016 by the Charity Council, which we

advancement. I was among this group

hope sets the precedence for other

of professionals who later witnessed the

Malay/Muslim charitable bodies to follow.

establishment of AMP a year later. Alhamdulillah, since then, my volunteering

The growing expectation of accountability

capacity in AMP has evolved into an

from our donors, key stakeholders and the

operational executive role – a responsibility

general public has driven us to continually

which I have held for more than a decade.

strive to enhance our existing programmes and introduce new ones in order to cater

Within the last 25 years, we have served

to the changing needs of the community.

more than 328,000 beneficiaries comprising

As this year is our Silver Jubilee, we have

not only those from the lower-income

undertaken new outreach efforts as well

groups but also aspiring entrepreneurs,

as introduced new initiatives to help more

emerging professionals, and most recently,

of those in need.

debtors. We have also seen many of our former beneficiaries who have done well

Earlier this year, we introduced a critical

for themselves and are now giving back to

thinking segment on WARNA 94.2FM and

the community in their own way. We share

Berita Minggu called Renung Sejenak. It

the story of three of such beneficiaries in a

invites the listeners and readers to reflect on

section of the anniversary supplement that

pertinent topics in the community, such as

is enclosed with this report.

education, family, finance, youth and health. We also premiered our first-ever TV series

In the past, our financial situation was at

on Suria channel titled Buku Tiga Lima, to

times, dire. We sometimes had to rely on

create awareness and educate the

our members and volunteers to help pay for

community on various debt issues. In

our expenses from their own pockets.

addition to extending our outreach through

Things have gradually turned around and

these channels with the support from

the AMP Group has enjoyed an average

national funding initiatives such as the Care

annual turnover of $16 million over the last

& Share grant, we were also able to

three years. With this, we have also

provide assistance to a greater number of

undertaken efforts to ensure that our

needy individuals including those from other voluntary welfare organisations (VWO).


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For example, we chanelled the proceeds

undergraduates studying at the Singapore

Our work in the community will not stop

from our Charity Golf Tournament this year

Management University (SMU). Eight

with our Silver Jubilee celebrations. In fact,

to Club HEAL, which helps people with

months later, in July 2016, together with

we will work harder than ever to ensure we

mental illnesses and their families. In the

Lembaga Biasiswa Kenangan Maulud

carry on working towards realising our

same spirit, we also included beneficiaries

(LBKM) and Singapore University of

founding members’ vision of a dynamic

from other VWOs like the Pasir Ris Family

Technology and Design (SUTD), AMP

Muslim community. Each milestone

Service Centre, WAHAH Transitional Shelter

launched the first-ever engineering scholarship

achieved drives us to renew our aspirations.

and New Hope Community Services to

for Malay/Muslim undergraduates. With

As such, we are tremendously grateful for

receive our annual festive assistance

the establishment of these scholarships, we

the dedication and generosity demonstrated

comprising new Hari Raya clothing and

hope to realise our vision of having

by our activists, volunteers, donors, sponsors,

commemorative gift packs, as well as attend ‘graduates in every family’ and catalyse the

partners and staff in supporting our efforts

our Ramadan workshop and iftar session.

progress of our community.

to serve the community. May the next 25

Given the strong support AMP has received

In addition to these scholarships, AMP also

from the community over the years, we

collaborated with the Centre for Fathering

believe that it is important for us to pay it

for the first time to organise a fathering

forward and extend the same support to

seminar, supported by Berita Harian, in

other organisations, which are also serving

September this year. The seminar featured

MOHD ANUAR YUSOP

the interests of our community.

invited speakers like renowned motivational

Executive Director

expert, Dato Dr Hj Mohd Fadzilah Kamsah,

AMP

years see AMP and the community scaling

Apart from our signature events and

to address the challenges of parenting

activities, we have also forged strategic

adolescents. AMP also collaborated with

partnerships to extend our reach to various

the National Youth Council to organise a

groups within the community. In November

first-of-its-kind youth convention, CommaCon,

2015, AMP, through MERCU, launched a

a month later. The convention provided

first-ever scholarship with a local university

youths with a platform to have meaningful

to help students in need. The inaugural

conversations on contentious issues like

recipients of the MERCU-SMU Excellence

racism, terrorism, national identity and the

Scholarship are three full-time Malay

socio-economic divide. Undoubtedly, these partnerships have enabled us to enhance our knowledge and strengthen our efforts to better serve the community.

to even greater heights than before.

PBM


THE AMP GROUP

BOARD FUNCTIONS

CORPORATE FUNCTIONS

ASSOCIATION OF MUSLIM PROFESSIONALS

AUDIT & CORPORATE GOVERNANCE COMMITTEE

EXECUTIVE DIRECTOR’S OFFICE

AMP BOARD OF DIRECTORS

FINANCE & INVESTMENT COMMITTEE

CORPORATE COMMUNICATIONS

SOCIAL SERVICES

HUMAN RESOURCE COMMITTEE

FINANCE & ADMINISTRATION

Debt Advisory Centre Family Services Helpline

NOMINATING COMMITTEE

HUMAN RESOURCE

STRATEGY COMMITTEE

MANAGEMENT OF INFORMATION SYSTEM

Marriage Hub Training & Education Youth FUND RAISING


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CENTRE FOR RESEARCH ON ISLAMIC AND MALAY AFFAIRS

MERCU LEARNING POINT

YOUNG AMP

RIMA BOARD OF DIRECTORS

MERCU BOARD OF DIRECTORS

YOUNG AMP MEX BOARD OF BOARD OF MANAGEMENT MANAGEMENT

APPLIED RESEARCH

CORPORATE SUPPORT SERVICES

WINDOWS ON WORK

Human Resource & IT EVENTS Finance PUBLICATIONS

Marketing Communications

COMMON SPACE CAMPUS OUTREACH

EARLY CHILDHOOD TREND & POLICY ANALYSES

STUDENT CARE CENTRE

FAITH & GREEN INITIATIVE SECRETARIAT

MUSLIM EXPATRIATES NETWORK

SECRETARIAT


AMP BOARD OF DIRECTORS CHAIRMAN

VICECHAIRMAN

MEMBERS

MR ABDUL HAMID ABDULLAH

MR ZHULKARNAIN ABDUL RAHIM

DR BIBI JAN MOHD AYYUB BBM

DR MD BADRUN NAFIS SAION

Auditor Public Sector (elected on 30 November 2013)

Partner Dentons Rodyk & Davidson LLP (elected on 12 December 2015)

School Counsellor (elected on 30 November 2013)

Head, Community Dental Services Singhealth Polyclinics (elected on 12 December 2015)

MR MUHD SHAMIR ABDUL RAHIM

MR OTHMAN MARICAN

Managing Director Sypher Labs Pte Ltd (elected on 30 November 2013)

Human Resource Manager (Retired) (elected on 12 December 2015)


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MR MOHAMAD AZMI MUSLIMIN

DR MOHD NAWAB MOHD OSMAN

MR MUHAMAD NAZZIM MUHAMAD HUSSAIN

Private Investor (elected on 12 December 2015)

Assistant Professor, Coordinator of Malaysia Programme (IDSS), S. Rajaratnam School of International Studies Nanyang Technological University (elected on 30 November 2013)

Chief Operating Officer Vector Scorecard

MR AZMOON AHMAD

MR MOHD RAZIFF ABDULL HAMID

MR PHIROZE ABDUL RAHMAN Materials Manager II-VI Singapore Pte Ltd (elected on 3 December 2011)

Vice-President Desay SV Automative (elected on 1 December 2007; retired on 12 December 2015)

(elected on 12 December 2015)

Sales Director Getronics Solution (S) Pte Ltd (elected on 14 November 2009; retired on 12 December 2015)

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AMP BOARD COMMITTEES AUDIT & CORPORATE GOVERNANCE COMMITTEE

Chairman

The Audit & Corporate Governance

Mr Mohamad Azmi Muslimin

Committee oversees compliance with statutory governance requirements and

Mr Zhulkarnain Abdul Rahim Members Mr Nazzi Beck Ms Siti Hawa Sulaiman

ensures adherence to established internal

NOMINATING COMMITTEE The Nominating Committee proposes candidates for election to the Board of Directors and recommends Additional Directors to the Board as and when necessary for appointment by the Board.

controls to protect the assets of the company and promote transparency. Chairman Mr Fairuz Adam Members Mr Fadhillah Goh Ms Karen Chia

HUMAN RESOURCE COMMITTEE The Human Resource Committee develops and reviews the compensation and benefits structure and terms for the

FINANCE & INVESTMENT COMMITTEE

Chairman

The Finance & Investment Committee

Members

budget and explores investment

Members Mr Mohd Alami Musa Mr Muhamad Nazzim Muhamad Hussain

reviews their training needs annually to building.

are conducted within the operational

Mr Abdul Hamid Abdullah

employees of the organisation. It also facilitate competency and capacity

ensures all activities by the organisation

Chairman

Mr Othman Marican

Dr Md Badrun Nafis Saion Mr Mohd Shahar Hussein Dr Noraslinda Zuber

STRATEGY COMMITTEE The Strategy Committee provides recommendations on effective implementation of AMP’s strategic initiatives and good governance. Chairman Mr Abdul Hamid Abdullah

opportunities to enhance the financial

Members

stability of the organisation.

Mr Azmoon Ahmad Mr Hazni Aris Mr Mohd Anuar Yusop Mr Muhd Shamir Abdul Rahim Mr Zhulkarnain Abdul Rahim


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AMP MANAGEMENT TEAM READY FOR SCHOOL FUND MANAGEMENT COMMITTEE

Mr Mohd Anuar Yusop PBM Executive Director

Ms Hameet Khanee J H Senior Manager

Chairman

Ms Fauziah Rahman

Mr Mohd Raziff Abdull Hamid

Manager, Training & Education

Sales Director Getronics Solutions (S) Pte Ltd

Mr Kamat Mahmood Manager, Youth

Members Mr Mohd Farid Mohd Hamzah

Ms Maisarah Dasukie

Correspondent

Manager, Human Resource

Berita Harian / Berita Minggu

Mr Mohd Khalid Bohari Mr Mohd Fawzi Ishak

Manager, Management Information System

Account Director DigitUX Solutions

Mr Saiful Nizam Jemain Assistant Manager, Debt Advisory Centre

Ms Shazana Mohd Anuar Senior Legal Associate

Mr Sarjono Salleh Khan

Harry Elias Partnership

Manager, Facilities Management

Mr Shahjehan Ibrahim Kutty Manager, Finance & Administration

Ms Winda Guntor Manager, Corporate Communications

Ms Zaleha Ahmad Centre Director, Marriage Hub

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DIVISIONS OF AMP

AMP’s volunteers and full-time officers work

SOCIAL SERVICES

together to run programmes in educational enrichment, work skills training, family and economic empowerment, and

DEBT ADVISORY CENTRE

FAMILY SERVICES

research. These programmes aim to catalyse and accelerate the development of the community and optimise human potential. Since its inception, AMP has served more than 328,000 clients from all walks of life and communities.

CORPORATE SERVICES The Corporate Services division provides support for all our programmes and services. The division is made up of the Corporate Communications, Executive Director’s Office, Finance & Administration, Fund Raising, Human Resource, and Management of Information System departments.

The Debt Advisory Centre (DAC) was

The Family Services department manages

set up to tackle debt issues within the

the Adopt a Family & Youth Scheme,

Malay/Muslim community in Singapore,

which is an all-encompassing scheme

with the broader objective of strengthening

representing a family-based approach in

the community’s overall financial standing.

providing assistance to underprivileged

The DAC has three main aims: to be a

families. A comprehensive range of

one-stop centre where individuals with

services is made available to each family

debt problems can go to for advice; to

depending on their specific needs. These

provide clients with the necessary

include financial assistance, counselling

education on debt management and

for the family members, socio-educational

other related matters; and to research the

assistance for the children and skills

extent of the debt problem within the

upgrading courses for adult members.

community. It comprises five components, namely a first-of-its-kind debt support group for the Malay/Muslim community, counselling sessions, introductory seminars on debt and finance, targeted seminars on debt-related issues, and ad-hoc activities to raise awareness of the DAC.


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TRAINING & EDUCATION

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YOUTH

The Marriage Hub runs INSPIRASI@AMP,

The Training & Education department

The Youth department conducts academic

which provides premarital counselling,

promotes lifelong learning through

and non-academic developmental

and marriage preparation and enrichment

enhanced parental involvement in their

programmes comprising weekly tuition

to minor Muslim couples where either

children’s education and development,

classes and personal development

one or both parties are aged below 21.

skills development and financial

programmes such as camps, workshops

INSPIRASI@AMP aims to assess the

assistance. It also aims to economically

and other enrichment activities. These are

readiness of minor Muslim couples for

empower individuals to be self-reliant

targeted at youths with high-level needs,

marriage and subsequently equips those

through skills upgrading and to support

with the ultimate objective of keeping them

who wish to get married with the

and develop the entrepreneurial spirit

within the school system. The department

necessary skills for a successful marriage.

among the disadvantaged.

also provides counselling for youths and

Its eventual goal is to bring down the

their parents through the drop-in centres

percentage of divorce cases as well as

The department networks with all related

managed by AMP. The programmes are

the proportion of minor marriages in the

ministries, statutory boards and

also offered at AMP @ Jurong Point,

Malay/Muslim community. The Hub also

non-government organisations to tap

AMP’s youth hub in the west.

provides counselling services for marital,

on national thinking and resources in

relationship, youth, parenting and

the areas of training and education.

financial issues for walk-in clients as well

Whenever possible, it will leverage on

as those who call in through the AMP

relevant training and education

Helpline, a telephone counselling and

campaigns and grants.

referral service by AMP.


YOUNG AMP

The youth wing of AMP, Young AMP,

relevant issues at the national and global

regularly organises seminars and

levels. A total of 467 youths and young

workshops to encourage critical thinking

professionals participated in the various

among youths. Participants of Young

programmes and events organised by

AMP’s activities are equipped with skills

Young AMP during the year in review.

and knowledge aimed at developing their capacity to be future leaders of the community. They are also exposed to other


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BOARD OF MANAGEMENT President

VISION

ACTION PLAN

Empowered. Connected. Compassionate.

We Plan

Mr Muhd Shamir Abdul Rahim Managing Director Sypher Labs Pte Ltd

Young AMP uses rational objectives to best

MISSION

serve the future needs of aspiring and

Vice-President

emerging Singaporean youths while taking

Mr Hazni Aris

To mobilise young professionals’ role in

into consideration the dynamic changes in

Sales Manager

the advancement of the Muslim community

the local and global landscape.

Zurich Insurance Singapore

We Partner

Members

Young AMP leverages on its professional

Mr Aminur Rasid

networks to develop partnerships to

Senior Executive Officer, Madrasah Policy

OBJECTIVES • To engage youth and emerging professionals

maximise the impact of community initiatives.

• To provide a platform to generate ideas and articulate aspirations

We Execute Young AMP is committed to translating

• To be an avenue for young professionals who are interested to carry on AMP’s mission and leadership in society

plans into action and to steer the community into the future.

and Planning Unit Islamic Religious Council of Singapore (MUIS)

Mr Ariff Aziz Co-founder The Frontier Alliance

Ms Fatimah Yasin Product Development Maybank

Ms Fezhah Maznan Programmer, Theatre and Dance Esplanade Corp. Ltd

Mr Muhd Syakir Hashim Undergraduate National University of Singapore

Mr Shafiee Razali Youth Worker Majulah Community

Ms Sofiah Su’aad Jamil PhD Candidate Australia National University

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MUSLIM EXPATRIATES NETWORK

The Muslim Expatriates Network provides a platform for the integration of new Muslim citizens and permanent residents into the Singaporean society. MEX also seeks to create bridges between the Muslim expatriate community and the local Muslim community as a way to build a larger and stronger Muslim community in Singapore and catalyse its progress.


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VISION

KEY OBJECTIVES

A progressive, dynamic and globally

• Provide a structured platform for

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integrated professional community in

networking between expatriate, new

Singapore

resident and Singaporean professionals to explore new business frontiers and

MISSION To harness the talents of expatriates and

drive cultural exchange • Foster the appreciation of Singapore

Singaporeans to mutually develop and

culture and values among expatriates

benefit both communities

to facilitate their integration into Singaporean society • Inspire, motivate, enlighten and empower local young, aspiring professionals via mentoring by top-ranking, cross-cultural expatriate professionals • Harness the strength of the new Muslim residents as a new engine of growth for the Muslim community in Singapore • ‘Port of call’ for expats entering Singapore

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CENTRE FOR RESEARCH ON ISLAMIC AND MALAY AFFAIRS

Since its inception, the Centre for

RIMA contributes to scholarly discourses

Research on Islamic and Malay

on numerous issues relevant to the

Affairs (RIMA) has developed a range of

community. Conferences and seminars are

programmes in research and established

organised to add depth to these discourses

several platforms for the meeting of minds.

and to create awareness of these issues.

RIMA currently conducts research in a

Roundtable and focus group discussions

number of key areas, which includes

involving key stakeholders

economics, education, religion, family,

are also organised to foster greater

social integration, leadership and civil

understanding of issues and to keep

society. With time, RIMA expects to

abreast of emerging trends. Additionally,

expand the scope of its research activities

RIMA has produced a number of

beyond local issues and looks forward to

publications and contributed articles in

collaborating with partners in the regional

both print and online media. A total of

and larger international community.

265 participants benefited from the various programmes and events organised by RIMA during the year in review.


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VISION

CORE VALUES

To be a centre of research excellence for

Independence

the advancement of Singapore’s Malay

We are non-partisan and objective in our

Chairman

and Muslim communities

outlook and research.

Mr Muhamad Nazzim Muhamad Hussain

BOARD OF DIRECTORS

Chief Operating Officer

MISSION

Conviction We are focused in our commitment to

To undertake strategic research aimed

advancing the interests of the Malay and

at providing thought leadership in

Muslim communities.

contemporary Malay and Muslim affairs Collective Effort We are team-oriented and value the opinions of all our staff and partners. Collaborativeness We respect the work of other organisations and embrace partnerships and the sharing of information.

Vector Scorecard (appointed on 1 October 2014)

Members Dr Ab Razak Chanbasha Technical Director Omega Scientific Pte Ltd (appointed on 27 August 2014)

Dr Mohd Nawab Mohd Osman Assistant Professor, Coordinator of Malaysia Programme (IDSS), S. Rajaratnam School of International Studies Nanyang Technological University (appointed on 29 September 2015)

Forward Thinking We are visionary and progressive in our

Mr Nur Azha Putra Abdul Azim

approach. We aim to look beyond the

Research Associate, Energy Security Division

immediate in order to foresee future

Energy Studies Institute

challenges and key emerging issues, formulating strategies relevant to both the Malay and Muslim communities.

National University of Singapore (appointed on 21 March 2012; resigned on 19 August 2016)

Mr Sani Hamid Director for Economy and Market Strategy Financial Alliance Pte Ltd (appointed on 21 March 2012; resigned on 19 August 2016)


MERCU LEARNING POINT

MERCU Learning Point is a private

MERCU prides in establishing a

education centre, which offers a

collaborative environment with parents

comprehensive range of programmes

and schools as it believes they are

and services for children aged 18 months

important catalysts in the children’s

to 12 years. Set up in 1999, MERCU

development. With the tagline, Starting

now has 18 centres comprising one

Young, Aiming High, its programmes

kindergarten, five childcare centres and

are robustly designed with the aim to

twelve student care centres.

maximise the children’s capabilities and propelling them to greater heights. MERCU served at least 2,000 children every month in its 18 centres located islandwide during the year in review.


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VISION

SHARED VALUES

A first-class provider in child and youth

Meaningful Relations

education

We establish meaningful and long-term

Chairman

relationships with our customers.

Mr Mohd Azmi Muslimin Private Investor

MISSION

Excellence

• Maximise shareholders’ value

We ensure professional excellence in carrying out our daily duties and

• Be a reliable and trusted partner

BOARD OF DIRECTORS

responsibilities.

(appointed on 9 February 2012)

Members Dr Hishamuddin Badaruddin Deputy Director, Integrated Operations Hub

• Provide quality and innovative programmes

Resourceful We explore effective and efficient methods to deliver our services that benefit both our

• Be a socially responsible corporate citizen

customers and business units to achieve financial growth and sustainability. Customer Service We maximise customer satisfaction by providing prompt services and continuously exceeding their expectations.

Ministry of Health (appointed on 2 May 2016)

Dr Md Badrun Nafis Saion Head, Community Dental Services Singhealth Polyclinics (appointed on 1 April 2015)

Mr Mohd Anuar Yusop PBM Executive Director Association of Muslim Professionals (appointed on 10 February 2001)

Unique We offer a variety of innovative and

Mr Phiroze Abdul Rahman

specialised programmes that meet your

Materials Manager

individual needs.

II-VI Singapore Pte Ltd (appointed on 1 April 2015)

Tengku Zainal Abidin Jumat Head, Branch Support Maybank (appointed on 16 April 1999; resigned on 30 April 2016)

20


OUR PROGRAMMES AND SERVICES FAMILIES beneficiaries enjoyed accessible and affordable home internet connectivity during the year in review. HOME OWNERSHIP PLUS EDUCATION SCHEME AMP is one of the mentoring agencies under the Home Ownership Plus Education (HOPE) Scheme, a national assistance programme spearheaded by the Ministry of Social and Family Development (MSF) for young, low-income families to keep their family small. During the year in review, 39 individuals received education and training grants aimed at helping their families achieve self-resilience.

ADOPT A FAMILY & YOUTH SCHEME

Parental education programmes and family

DEBTORS

The Adopt a Family & Youth Scheme

life skills workshops are also conducted for

DEBT ADVISORY CENTRE

(AFYS) was introduced in 1999 to provide

parents under AFYS to equip them with the

The Debt Advisory Centre (DAC), which

assistance for disadvantaged families and

knowledge and skills to improve the quality

was launched in 2013, is a one-stop

encourage self-reliance within them.

of their family life. For the year in review,

centre that assists individuals facing debt

Families under AFYS are assisted through

681 beneficiaries from 120 families were

problems through a three-pronged

economic empowerment and socio-

enrolled in the scheme.

approach: advice, educate and research.

educational programmes. They undergo

It provides a roadmap for debtors to have

skills training in economically-viable areas

HOME ACCESS

a clearer picture of the options that are

to enable them to set up a home-based

AMP partners the Infocomm Development

available to them. In addition, DAC clients

business as an alternative source of

Authority of Singapore (IDA) and National

attend support group sessions where they

income. They are also enrolled into skills

Council of Social Service (NCSS) to

share their experiences and gain

upgrading courses to increase their

provide low-income households with

emotional support from others facing the

employability, while school-going children

internet access and telephony services for

same problem. They also attend financial

under AFYS are enrolled into tuition

their homes by offering a broadband

literacy workshops to prevent them from

classes and enrichment programmes.

package at a subsidised rate through the

creating new debts while they work to

Home Access programme. A total of 502


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STUDENTS resolve their current debt issues. DAC also acts as a platform to collect data for research on the extent of the debt problem within the Malay/Muslim community. A total of 367 individuals were assisted with their debt issues during the year in review. Achievers & Enablers The Achievers & Enablers programme was initiated in 2014 for the DAC clients and their children so that they remain resilient in face of life’s challenges. The Achievers component aims to equip the students with personal and academic competencies that are fundamental in achieving consistent academic success and developing effective behaviours, habits and values within and outside of school. The Enablers component aims to equip the

READY FOR SCHOOL FUND

AMP Education Bursary

adults with personal and technical

The Ready for School (RFS) Fund was

The AMP Education Bursary offers

competencies, which are instrumental to

launched in 2002 to assist students from

monetary assistance to diploma and

their personal development and in

less privileged families in their educational

degree students from less privileged

enhancing their capabilities both at home

pursuit. Assistance under the Fund

families of all races. Apart from students

and at the workplace. For the year in

comprises the AMP Education Bursary,

from local polytechnics and universities,

review, 49 beneficiaries attended the

AMP-RFS PC Scheme, RFS Enrichment

the bursary also benefits full-time and

various developmental sessions under

Series and other socio-educational

part-time undergraduates from recognised

the programme.

assistance.

private education institutions in Singapore. The bursary seeks to recognise the recipients’ academic achievements, alleviate their financial load and be a source of motivation for them to strive harder in their higher education. For the year in review, 83 recipients were awarded the AMP Education Bursary.


OUR PROGRAMMES AND SERVICES

School Fees Subsidy During the year in review, AMP disbursed more than $43,000 to its subsidiary, MERCU Learning Point, to subsidise the school fees of 293 students from preschool to secondary levels from low-income families, who have attended their education centres. NEU PC PLUS PROGRAMME AMP partners the Infocomm Development Authority of Singapore (IDA) as a lead agency for the NEU PC Plus Programme, which aims to enable students from low-income families who are studying in national schools to have equal access to infocomm with a PC and broadband at a subsidised rate. A total of 462 students AMP-RFS PC Scheme

RFS Enrichment Series

benefited from the programme during the

In 2009, AMP introduced the AMP-RFS

In 2016, AMP launched the inaugural

year in review.

PC Scheme for madrasah students from

RFS Enrichment Series for less privileged

low-income families to provide them with a

students to develop them holistically by

PC at a heavily subsidised rate. With

broadening their horizons and developing

infocomm becoming an increasingly

new skills. The series comprise two

essential component of the Singapore

components – the Children Programme,

education curriculum, the scheme aims to

which is designed for students in the upper

ensure madrasah students are able to

primary level, builds on their Mathematics

effectively tap on information technology

and Science knowledge through activity

to excel in their academics. 4 madrasah

and inquiry-based learning; and the Youth

students were assisted under the scheme

Programme, which is designed for

during the year in review.

secondary school students, provides a platform for sharing and discussion on specific areas of interest and developing of skills. 38 students benefited from the series during the year in review.


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SINGAPORE MUSLIM EDUCATION

COMPULSORY EDUCATION

agencies to children who are not receiving

FUND

PROGRAMME

compulsory education. 25 children were

AMP acts as the custodian of the

According to the Compulsory Education

assisted under the programme during the

Singapore Muslim Education Fund (SMEF),

Act in Singapore, the parent or guardian

year in review.

which was established by a group of

of a child, who is above the age of 6 and

activists in 2013 to address the under-

has not turned 15, may be guilty of an

representation of Malay/Muslims in the

offence if the child fails to attend classes

Law and Medicine fields. The Fund aims

regularly as a pupil at a national primary

to provide financial assistance for students

school, a designated school or be

pursuing law and medicine degree

home-schooled, where an exception is

studies overseas through the disbursement

granted. AMP collaborates with Yayasan

of bursaries. 6 law and medical

MENDAKI to run the Compulsory Education

undergraduates received the SMEF

programme, initiated by the Ministry of

Bursary during the year in review.

Education, where youth workers conduct home visits and provide necessary support such as counselling or referrals to relevant


OUR PROGRAMMES AND SERVICES

YOUTHS COMMON SPACE In 2015, AMP launched the Common Space, which provides a shared community-driven workspace for start-ups and small businesses. Powered by Young AMP, the Common Space is fully equipped with amenities like WiFi, mini pantry, seminar and conference rooms. The training and conference rooms are also utilised by other organisations and the public for various events, seminars and workshops. Common Space also offers flexible membership plans for the use of its space, either on a daily or monthly basis. 9 tenants utilised the workspace during the year in review.

WINDOWS ON WORK

formal office and informal creative

In 2011, Young AMP launched

settings. In 2016, the first phase of the

Windows on Work (WOW) to provide

programme was extended to members of

post-secondary students with a platform

the public. It comprised a sharing session

to learn valuable soft skills and

with industry experts on future challenges

entrepreneurship. Under the three-phase

for the economy and how participants can

programme, participants undergo useful

better prepare themselves through skills

training sessions like personality profiling,

training and upgrading. A total of 51

CV writing, personal grooming, effective

students benefited from the WOW

communication, as well as project

programme during the year in review.

presentation skills, before working together in teams to pitch their own business proposals to the Young AMP Board of Management. In a collaboration with Pioneer Junior College, a group of its students are also selected to be exposed to career developmental skills in both


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After School Engagement Another new component of YEP is the After School Engagement, where youths are engaged in wholesome activities such as homework, board and computer games and light sports after school to prevent them from getting involved in negative activities outside school. A total of 65 students participated in the programme during the year in review. AMP @ JURONG POINT In 2011, AMP launched its youth hub located at Jurong Point Shopping Centre, which was driven by the increasing demand for youth services in the western part of Singapore. The youth hub provides an alternative space for youths to drop by YOUTH ENRICHMENT PROGRAMME

prematurely and encourage them to widen

and spend their time in a structured

The Youth Enrichment Programme (YEP) is

their horizons. 192 students from four

manner as a way to prevent them from

specifically designed for students from the

participating schools benefited from the

engaging in wayward activities.

Normal Academic and Normal Technical

programme during the year in review.

streams to enrich their development

AMP @ Jurong Point offers a wide range

through a positive and holistic approach.

Sports Intrinsic Programme

of services focused on the academic

The programme also incorporates the

The Sports Intrinsic Programme is a

and personal development of the youths

Youth-in-Action (YIA) Plus Programme, an

component under YEP to engage youths in

through enrichment programmes,

enrichment programme commissioned by

sports activities to encourage a healthy

motivational workshops and youth

the Community Leaders Forum (CLF).

lifestyle. Personal development skills are

counselling services. The centre is

also inculcated through sports activities

equipped with two counselling rooms,

Students in the programme are tutored in

such as life skills, teamwork, motivation

a classroom and a multi-purpose room

English and Mathematics, and participate in

and anger management. A total of 102

with a host of entertainment services like

enrichment activities aimed at their overall

students participated in the programme

foosball table, audio-visual system, board

personal and character development. The

during the year in review.

games and internet kiosk. A total of 538

programme hopes to prevent youths with

youths and parents sought the services of

high-level needs from leaving school

the hub during the year in review.


OUR PROGRAMMES AND SERVICES

WORKERS Life & Study Skills Workshop Under the Life and Study Skills Workshop, secondary school students participate in various interactive workshops and camps aimed at equipping them with useful life skills so that they are motivated to excel with a much higher level of self-esteem and confidence. A total of 760 youths participated in the activities under the workshop during the year in review. Youth Drop-in Centres The two drop-in centres at AMP @ Pasir Ris and AMP @ Jurong Point provide a safe and friendly environment for youths and their parents to discuss issues that concern them. The centres offer immediate crisis intervention, referrals and individual counselling services. 28 youths and

MICRO BUSINESS PROGRAMME

participants under the programme are

parents sought assistance from the centres

The Micro Business Programme aims to

able to tap on SME Centre’s wide range of

during the year in review.

assist individuals from less privileged

business advisory services such as

households with trade, business and IT

business advisory and business diagnosis

skills to start a home-based business as an

in the areas of business and IT processes

alternative source of income for the

throughout the different phases of the

household. Grants are also awarded to

programme.

those who have a viable and sustainable business model.

A total of 32 participants completed the programme during the year in review, five

In 2010, AMP inked a memorandum of

of whom received the AMP Capital Grant

understanding with the Singapore Malay

to expand their businesses further.

Chamber of Commerce & Industry (SMCCI) to formalise both organisations’ commitment in enhancing the capabilities and growth of business under the Micro Business Programme. With the partnership,


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Advanced Micro Business Programme As an extension to the Micro Business Programme, the advanced programme aims to enhance the business knowledge and network of its graduates beyond the local market. Through this programme, graduates go through a business workshop and matching session conducted by the SME Centre@SMCCI and an overseas business academy. For the inaugural programme, 14 graduates benefited from a learning trip to Batam, Indonesia. SKILLSFUTURE SERVICE TOUCHPOINT AMP acts as a Service Touchpoint to assist eligible Singaporeans with enquiries or

COUNSELLORS’ HIGH TEA

COUPLES

those who wish to make a submission for

The Counsellors’ High Tea sessions

YOUNG COUPLES PROGRAMME

the SkillsFuture Credit claims. SkillsFuture is

provide a learning platform for both

The Young Couples Programme (YCP) is

a national initiative that aims to encourage

Muslim and non-Muslim helping

designed for minor Muslim couples who

individuals to take ownership of their skills

professionals to share and learn from

wish to get married, where either or both

development and lifelong learning. AMP

each other’s experiences in working

parties are below 21. Conducted in

served 20 individuals through this service

with Malay/Muslim families. 127

collaboration with the Registry of Muslim

during the year in review.

individuals from the social service sector

Marriages (ROMM), the couples are

benefited from the sessions during the

required to undergo two sessions of

year in review.

premarital counselling and a seven-week marriage guidance course, while their parents are equipped with the skills and knowledge to assist and support their children through their marital journey.


OUR PROGRAMMES AND SERVICES

Premarital Counselling The young couples under YCP undergo a three-hour counselling session at INSPIRASI@AMP, where their readiness for marriage is assessed. The couples are assessed based on their understanding and ability to perform their roles and responsibilities as married partners and the necessary skills to sustain a marriage. The counsellors also meet with the couples’ parents to assess the level of functional support from them. A total of 31 young couples attended the premarital counselling sessions during the year in review. Marriage Guidance Course The Marriage Guidance Course is aimed at enabling these young couples to build a strong and stable marriage, as well as

Parents Support Group

CLUB INSPIRASI

become responsible parents. Problem-

Parents of the young couples are also

Club INSPIRASI is a post-marriage

solving, life skills and moral values are

equipped with the skills and knowledge to

enrichment programme organised for

imparted to the couples in an effort to

help and support their newly-married

young couples who have graduated from

strengthen family ties. 31 young couples

children through their marital journey. The

the Marriage Guidance Course. Through

attended workshops, as well as other

sessions are focused to review the

marriage enrichment activities, mentoring

programmes and activities organised under

expectations of in-law relationship, identify

and counselling services, as well as

the course, during the year in review.

roles and responsibilities of parents and

referrals to national assistance

parents-in-law, as well as identify ways to

programmes, Club INSPIRASI aims to help

provide functional support and encourage

the couples enhance and strengthen their

independence. A total of 40 parents

relationship with their partners. A total of

participated in the programme during the

275 individuals benefited from this

year in review.

programme during the year in review.


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COUNSELLING SPECIAL MARRIAGE LICENCE

WALK-IN, CYBER & MANDATORY

In accordance with the Administration of

COUNSELLING

Muslim Law Act (AMLA), INSPIRASI@AMP

AMP’s trained counsellors and social

conducts counselling assessment for

workers provide counselling and referrals

young couples, who are below the age of

to families and individuals in need.

18 and wish to get married. 16 young

They handled 287 walk-in, cyber and

couples underwent the counselling

mandatory counselling cases during the

assessment before being recommended for

year in review.

the Special Marriage Licence, granted by the Registry of Muslim Marriages, during

AMP HELPLINE

the year in review.

The AMP Helpline provides telephone counselling services, as well as relevant

MARRIAGE COUNSELLING

information on the available resources and

PROGRAMME

schemes to those in need. A total of 3,193

The Marriage Counselling Programme

calls were received during the year in

aims to assist married couples who are

review, of which marital, young couple

referred by the Syariah Court with issues

and financial issues were among the top

that they face in their marriage. The

concerns.

programme aims to strengthen marriages by providing intensive marital counselling and increase awareness of the available avenues for help. A total of 438 clients were assisted under the programme during the year in review.

30


OUR CLIENTS & BENEFICIARIES PROGRAMMES / SERVICES

NO. OF BENEFICIARIES

Workers Training / Skills & Upgrading

66

Education Enrichment

2,183

Youth Development

2,532

Helpline

3,193

Parenting & Family Education

377

Disadvantaged Families’ Assistance

4,090

Counselling

1,360

Others

501

Total

i.e. seminars, workshops, volunteers training, etc

14,302


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OUR INCOME & EXPENDITURE INCOME

$

Donations

2,868,266

Government Matching Grant

800,000

MBMF Grant through CPF

696,654

Other Grants

1,313,101

Childcare & Preschool Operations

5,854,777

Student Care Centres

4,502,010

Programme Fees & Other Project Income

799,895

Research Income

319

Miscellaneous Income

623,065

Revaluation Gain

714,285

Total

18,172,372

EXPENDITURE

$

Social Services & Community Outreach

1,779,517

Childcare & Preschool Programmes

4,307,761

Student Care Programmes

4,136,445

Workers Training Programmes

220,022

Research

245,611

Marketing, Sales & Fund Raising

959,082

Financial & Taxation

20,077

General Admin & Overheads

5,098,327

Total

16,766,842

32


OUR SIGNIFICANT MILESTONES 1990

1995

2000

AMP Child Care and Development Centre in Yishun opened

1996 AMP Year 2000, a five-year strategic blueprint, announced 1st National Convention of Singapore Malay/Muslim Professionals Held on 6 & 7 October 1990, the Convention was attended by 500 Malay/Muslim professionals to brainstorm new directions for the community

1991 Incorporation of AMP as a company limited by guarantee

1992 Pilot preschool centre opened at Al Amin Mosque

1993 Launch of AMP Hotline Service

1994 Opening of AMP Training Centre

1997 Research on Malay/Muslim Students’ Ability and Attainment in Mathematics

1998 Launch of first subsidiary, Centre for Research on Islamic and Malay Affairs (RIMA) Formed on 28 February 1998, the centre undertook several important research projects such as on the performance of Malay students in education, to establish its role as a vehicle to formalise research on the Malay/ Muslim community and the issues faced by the community

2nd National Convention of Singapore Malay/Muslim Professionals The 2nd Convention was aimed at setting the agenda and strategies for the community to undertake in the 21st century

2001 Pilot run of Home Based Business Scheme

2002 Launch of Ready for School Fund

2003

1999

Launch of AMP Micro Business Programme

Launch of MERCU Learning Point, AMP’s second subsidiary

2004

MERCU Learning Point was first set up to provide various educational programmes for students, while taking over the training programmes offered by the AMP Training Centre. It now offers child and youth education programmes in its preschool and student care centres

Launch of Young AMP The youth wing of AMP was launched as a platform to mobilise the energies and ideas of younger professionals, as well as ensure leadership renewal within AMP

2005 Launch of Maths @ Home Learning Kit for Parents


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2012

2015

3rd National Convention of Singapore Muslim Professionals

Launch of Common Space

Launch of Learning Vision – AMP Education Fund

2007 Opening of INSPIRASI @ AMP

2008 Launch of Counsellors’ High Tea series

2009

2010

The 3rd Convention looked into six areas that are critical to the long-term development of the community, namely attracting Malay and Muslim talents from the region; leadership, civil society and young professionals; social development; education; religion; and economics

Inking of Memorandum of Understanding with EDC@SMCCI

2013

Introduction of Temporary Assistance Package

2011

The formation of DAC was one of the strategies proposed during the 3rd Convention to strengthen the community’s financial architecture

Launch of AMP-DAC Financial Literacy Programme

AMP’s first branch office and dedicated youth hub was launched on 26 February 2011, offering a wide range of services for the academic and personal development of youths

2016

Launch of Debt Advisory Centre (DAC)

2014

Opening of AMP @ Jurong Point

Launched in April 2015, Common Space, powered by Young AMP, provides a shared community-driven workspace for start-ups and small businesses

CommaCon 2016 A first-of-its-kind national youth convention, CommaCon 2016, provided a platform for youths to have honest and meaningful discussions on sensitive issues such as racism, terrorism, national identity and the socio-economic divide


OUR PARTNERS

Our deepest appreciation goes to the donors and supporters, whose generous contributions and support towards our

Acer Computer (Singapore) Pte Ltd

Early Childhood Development Agency

Agency for Science, Technology & Research (A*STAR)

East View Secondary School

fund raising initiatives provided the

Alive Community Network

opportunity for our beneficiaries to uplift

Amani Weddings Pte Ltd

their lives and build a better future.

A'Niz

Likewise, the collaboration between AMP

Assumption Pathway School

and our valued partners from various

Bata Singapore Pte Ltd

sectors as well as other communities have ensured that more individuals and families are able to benefit from our range of services and programmes.

Batam Pos Entrepreneur School Bendemeer Primary School Boon Lay Garden Primary School Bukit View Primary School Canberra Primary School Cantonment Primary School Care & Share Movement Care Corner – Teck Ghee Youth Centre Care Corner Family Service Centre (Queenstown) Care Corner Family Service Centre (Toa Payoh)

Embassy of the United States in Singapore Eurasian Association First Toa Payoh Primary School FiTree FOCUS Adventure Pte Ltd For the People & Community HeyMeet Pte Ltd Hong Kah Secondary School Immigration & Checkpoints Authority of Singapore Infocomm Development Authority of Singapore Institute for Infocomm Research (I2R) Institute of Technical Education Islamic Religious Council of Singapore (MUIS) Jurong Spring Community Club LaunchGood

Central Narcotics Bureau

Lee Foundation

Chinese Development Assistance Council

Literacy Initiative for Equity

Club HEAL

Loyang Secondary School

Community Alive Project

Lydia’s Oven

Community Leaders Forum

M1 Limited

Corporation Primary School

Madrasah Irsyad Zuhri Al-Islamiah

Covenant Family Service Centre

Madrasah Wak Tanjong Al Islamiah

Creative Muslim Youth Kakis

Management Development Institute of Singapore

Credit Counselling Singapore


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Marsiling Primary School

Serangoon Garden Secondary School

YMS Education (Young Muslim Scientists)

MENDAKI Club

Si Ling Primary School

Yu Neng Primary School

Ministry of Culture, Community & Youth

Singapore Indian Development Association

Yuan Ching Secondary School

Ministry of Education

Singapore Malay Chamber of Commerce & Industry (SMCCI)

Yuhua Secondary School

Ministry of Social and Family Development Muslim Delights Catering Muslim Healthcare Professionals Association Muslim Youth Forum National Council of Social Service National Parks Board National Volunteer & Philanthropy Centre

Singapore Malay Teachers’ Co-operative Limited Singapore Management University Singapore Muslim Women's Association (PPIS) Singapore Police Force Singapore Totalisator Board (Tote Board)

National Youth Council

Singapore University of Technology and Design

New Town Primary School

Singapore Workforce Development Agency

Northlight School

SME Centre @ SMCCI

OnePeople.sg

South Central Community Family Service Centre

Pioneer Junior College Pluto Technology Pte Ltd POKKA International Pte Ltd Prophet Muhammad's Birthday Memorial Scholarship (LBKM) Prowise Consultancy Pte Ltd Punggol Primary School Queenstown Primary School RAS Consultancy Services Pte Ltd Registry of Muslim Marriages Safinah Holdings Pte Ltd Second Chance Properties Ltd Selera Sensasi Nasi Padang

South East Community Development Council South West Community Development Council Syariah Court Singapore Teck Ghee Primary School The Food Bank Singapore Ltd The Silent Foundation Thye Hua Kwan Family Service Centre Vector Scorecard (Asia-Pacific) Pte Ltd White Sands Primary School Yayasan MENDAKI

Zhonghua Primary School


AN N U A L R E P O R T 2 0 1 6 FIN AN C I AL STAT E ME N T S Y EAR END E D 3 0 J U N E 2 0 1 6

YEARS OF SERVING THE COMMUNITY


Directors Abdul Hamid Bin Abdullah Bibi Jan Mohamed Ayyub Mohamed Nawab Mohamed Osman Muhammad Shamir Bin Abdul Rahim Phiroze Bin Abdul Rahman Md Badrun Nafis Bin Saion

(Appointed on 12 December 2015)

Mohamad Azmi Bin Muslimin

(Appointed on 12 December 2015)

Muhamad Nazzim Bin Muhamad Hussain

(Appointed on 12 December 2015)

Othman Lebby Marican Bin Vappoo Maricar

(Appointed on 12 December 2015)

Zhulkarnain Bin Abdul Rahim

(Appointed on 12 December 2015)

Azmoon Bin Ahmad

(Retired on 12 December 2015)

Mohammed Raziff Bin Abdull Hamid

(Retired on 12 December 2015)

Secretary Kong Yuh Ling Doreen

Registered Office 78 Shenton Way #26-02A Singapore 079120

Auditors Rohan • Mah & Partners LLP

Bankers United Overseas Bank Limited Oversea-Chinese Bank Corporation Limited DBS Bank Ltd Malayan Banking Berhad


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

CONTENTS 41 Directors’ Statement

43 Independent Auditors' Report

45 Statements of Financial Position

46 Statements of Comprehensive Income

47 Statements of Changes in Funds

48 Consolidated Statement of Cash Flows

49 Notes to the Financial Statements

FINANCIAL

STATEMENTS

02


DIRECTORS’ STATEMENT

The directors are pleased to present their statement to the members together with the audited consolidated financial statements of Association of Muslim Professionals (“the Company”) and its subsidiaries (collectively, “the Group”) for the financial year ended 30 June 2016. 1

OP I N I ON OF T H E D I R E C T O R S In the opinion of the directors, a.

the consolidated financial statements of the Group and the statement of financial position of the Company are drawn up so as to give a true and fair view of the financial position of the Group and the Company as at 30 June 2016 and the financial performance and changes in funds of the Group and the Company, and changes in cash flows of the Group for the year then ended; and

b.

at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debt as and when they fall due.

2

D I REC T ORS The directors of the Company in office at the date of this statement are: Abdul Hamid Bin Abdullah Bibi Jan Mohamed Ayyub Mohamed Nawab Mohamed Osman Muhammad Shamir Bin Abdul Rahim Phiroze Bin Abdul Rahman

3

Md Badrun Nafis Bin Saion

(Appointed on 12 December 2015)

Mohamad Azmi Bin Muslimin

(Appointed on 12 December 2015)

Muhamad Nazzim Bin Muhamad Hussain

(Appointed on 12 December 2015)

Othman Lebby Marican Bin Vappoo Maricar

(Appointed on 12 December 2015)

Zhulkarnain Bin Abdul Rahim

(Appointed on 12 December 2015)

A RRA N GEM EN T S FO R D I R E C T O R S T O ACQUIRE S H ARE S OR D E BE N TURE S Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of the Company or any other body corporate.


ASSOCIATION

4

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

D I REC T O R S' I N T E R E ST I N SH A R E S OR D E BE N TURE S As the Company is limited by guarantee and has no share capital, none of the directors holding office at the end of the financial year had an interest in the share capital or debentures of the Company. None of the directors holding office at the end of the financial year had an interest in shares or debentures of the subsidiaries either at the beginning (or at date of appointment) or end of the financial year.

5

A U D I T OR S The auditors, Messrs Rohan • Mah & Partners LLP have expressed their willingness to accept re-appointment as auditor.

O N BEHA L F O F T H E B O A R D O F D I R E CTORS

Abdul Hamid Bin Abdullah Director

Zhulkarnain Bin Abdul Rahim Director Singapore, 28 October 2016

42


INDEPENDENT AUDITORS’ REPORT

T O T H E M E M B E R S O F A S S O C I AT I O N O F M U S L I M P R O F E S S I O N A L S A N D I T S S U B S I D I A R I E S REPOR T ON T HE C O N SO LI D AT E D FI N A N C I AL S TATE M E N TS We have audited the accompanying financial statements of Association of Muslim Professionals (the “Company”) and its subsidiaries (collectively, the “Group”), which comprise the statements of financial position of the Group and of the Company as at 30 June 2016, and the statements of comprehensive income and the statements of changes in funds of the Group and of the Company, and consolidated statement of cash flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the “Act”); the Singapore Charities Act, Cap 37 (the “Charities Act”) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements of the Group and the statement of financial position, the statement of comprehensive income and the statement of changes in funds of the Company are properly drawn up in accordance with the provisions of the Act, the Charities Act and Singapore Financial Reporting Standards so as to give a true and fair view of the financial position of the Group and the Company as at 30 June 2016 and of the financial performance, changes in funds of the Group and the Company and cash flow of the Group for the year ended on that date.


ASSOCIATION

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MUSLIM

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2016:

FINANCIAL

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44

Other Matters The audit report of one of the subsidiaries contained the following emphasis of matter: Although the subsidiary’s current liabilities exceeded the current assets, and the accumulated losses exceeded the paid-up capital and reserves, by S$1,439,027 and S$1,439,027 respectively as at 30 June 2016, the financial statements have been prepared on the basis that the subsidiary is a going concern as the holding company has given written confirmation of its continuing financial support for the subsidiary. Our opinion is not qualified in respect of this matter. R EP ORT ON O T H E R LE G A L A N D R E G UL ATORY RE QUIRE M E N TS In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. During the course of our audit, nothing has come to our attention that causes us to believe that during the year: a.

The use of the donation monies was not in accordance with the objectives of the Company as required under regulation 11 (Use of donations) of the Charities (Institutions of a Public Character) Regulations; and

b.

The Company has not complied with the requirements of regulation 15 (Fund-raising expenses) of the Charities (Institutions of a Public Character) Regulations.

ROHAN • MAH & PARTNERS LLP Public Accountants and Chartered Accountants Singapore 28 October 2016 (RK/MA./FM/HL/LS/ZW/JS/AH/as)


STATEMENTS OF FINANCIAL POSITION A S

AT

3 0

J U N E

2 0 1 6

Note

Group

Company

2016

2015

2016

2015

S$

S$

S$

S$

8,482,112

8,458,127

8,319,588

8,334,601

AS S ET S L ES S L I A BI L I T I E S Non-Current Assets Property, plant and equipment

4

Investments in subsidiaries

5

250,001

250,001

Available-for-sale financial assets

6

1

1

1

1

Deferred taxation

11

148,641

122,305

8,630,754

8,580,433

8,569,590

8,584,603

Current Assets Trade and other receivables

7

2,326,071

3,453,655

3,388,661

3,007,244

Cash and cash equivalents

9

6,896,128

4,743,557

4,987,548

3,854,922

9,222,199

8,197,212

8,376,209

6,862,166

4,052,168

4,351,127

4,814,801

4,498,729

Current Liabilities Trade and other payables

10

Obligation under finance lease

12

Net Current Assets

6,985

31,263

6,985

31,263

4,059,153

4,382,390

4,821,786

4,529,992

5,163,046

3,814,822

3,554,423

2,332,174

6,985

6,985

13,793,800

12,388,270

12,124,013

10,909,792

6,212,319

5,498,034

6,212,319

5,498,034

7,209,648

6,599,620

5,539,861

5,121,142

Non-Current Liabilities Obligation under finance lease

12

Net Assets AC C UM U L AT ED F U N D Property revaluation reserve

13

Unrestricted funds Restricted funds

14

371,833

290,616

371,833

290,616

13,793,800

12,388,270

12,124,013

10,909,792

The accompanying notes form an integral part of these financial statements.


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

STATEMENTS OF COMPREHENSIVE INCOME FO R

T H E

Y E A R

E N D E D

30

ANNUAL

|

J U N E

Note

REPORT

2016:

FINANCIAL

STATEMENTS

46

2 0 1 6

Group

Company

2016

2015

2016

2015

S$

S$

S$

S$

Continuing operations Revenue

15

16,835,022

17,187,156

13,658,529

11,033,017

Expenditure

16

(16,746,765)

(17,124,492)

(13,456,735)

(11,085,809)

Other income

17

579,747

402,617

289,999

258,671

16,982

12,108

16,982

12,108

Interest income Financial expenses

19

Profit before tax for the year Taxation

(20,077)

(16,126)

(8,839)

(7,498)

664,909

461,263

499,936

210,489

26,336

16,857

Profit from continuing operations

691,245

478,120

499,936

210,489

Profit for the year

691,245

478,120

499,936

210,489

20

Other comprehensive income Revaluation gain

714,285

714,285

Other comprehensive income, net of tax

714,285

714,285

Total comprehensive income for the year

1,405,530

478,120

1,214,221

210,489

13

The accompanying notes form an integral part of these financial statements.


STATEMENTS OF CHANGES IN FUNDS F O R

T H E

Y E A R

E N D E D

3 0

J U N E

2 0 1 6

Group Property Revaluation Reserve

Unrestricted

Restricted

Total

S$

S$

S$

S$

5,498,034

6,364,812

47,304

11,910,150

234,808

243,312

478,120

5,498,034

6,599,620

290,616

12,388,270

714,285

714,285

A C C UM U L AT ED F U N D Balance as at 1 July 2014 Total comprehensive income for the year Balance as at 30 June 2015 Revaluation gain (Note 13) Total comprehensive income for the year Balance as at 30 June 2016

610,028

81,217

691,245

6,212,319

7,209,648

371,833

13,793,800

Company Balance as at 1 July 2014

5,498,034

5,153,965

47,304

10,699,303

(32,823)

243,312

210,489

5,498,034

5,121,142

290,616

10,909,792

714,285

714,285

Total comprehensive (loss)/income for the year Balance as at 30 June 2015 Revaluation gain (Note 13) Total comprehensive income for the year Balance as at 30 June 2016

418,719

81,217

499,936

6,212,319

5,539,861

371,833

12,124,013

The accompanying notes form an integral part of these financial statements.


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

CONSOLIDATED STATEMENT OF CASH FLOWS F O R

T H E

Y E A R

E N D E D

ANNUAL

|

3 0

J U N E

REPORT

2016:

FINANCIAL

STATEMENTS

48

2 0 1 6

Group 2016

2015

S$

S$

664,909

461,263

1,109,020

977,596

C A S H F L OW S FR O M O PE R AT I N G A C T IV ITIE S Profit before taxation Adjustments for : Depreciation of property, plant and equipment Finance lease interest Interest income Loss on disposal of property, plant and equipment Profit before working capital changes

1,904

2,956

(16,982)

(12,108)

-

263

1,758,851

1,429,970

1,127,584

(1,291,597)

(298,959)

665,513

2,587,476

803,886

Working capital changes, excluding changes related to cash: Trade and other receivables Trade and other payables Cash generated from operations Interest income received Net cash generated from operating activities

16,982

12,108

2,604,458

815,994

(418,720)

(774,440)

(418,720)

(774,440)

(31,263)

(43,408)

(1,904)

(2,956)

(33,167)

(46,364)

C A S H F L OW S FR O M I N V E ST I N G A C T I V ITIE S Acquisitions of property, plant and equipment Net cash used in investing activities C A S H F L OW S FR O M FI N A N C I N G A C T IV ITIE S Changes in finance lease liabilities - repayments Finance lease interest paid Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents

2,152,571

(4,810)

Cash and cash equivalents beginning of year

4,743,557

4,748,367

6,896,128

4,743,557

Cash and cash equivalents at end of year (Note 9) The accompanying notes form an integral part of these financial statements.


NOTES TO THE FINANCIAL STATEMENTS 3 0

JU N E

2 0 1 6

These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1

C ORP ORAT E I N F O R MAT I O N Association of Muslim Professionals was incorporated in Singapore as a company limited by guarantee without a share capital. Each ordinary member undertakes to contribute to the assets of the Company in the event of it being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the Company contracted before he ceases to be a member and of the costs, charges and expenses of winding up, such amount as may be required but not exceeding S$100. As at 30 June 2016, the Company has 991 (2015: 977) ordinary members. In addition, the Company has 305 (2015: 302) associate members who do not bear any liability in the event of the Company being wound up. The principal activity of the Company is to engage in self-help projects for the betterment of the Malay/Muslim community in particular, and Singaporeans in general. The Company is an approved charity under the Charities Act, Cap. 37 and has been accorded the status of an Institution of a Public Character (“IPC”) for the period from 10 October 2014 to 9 October 2018. The principal activities of the subsidiaries are shown in Note 5 to the financial statements. The registered office of the Company is located at 78 Shenton Way #26-02A Singapore 079120. The principal place of business is located at AMP@Pasir Ris, No. 1 Pasir Ris Drive 4, #05-11, Singapore 519457. The financial statements of the Group and the Company for the year ended 30 June 2016 were authorised for issue in accordance with a resolution of the Directors on 28 October 2016.

2

S U M M A RY OF SI G N I FI C A N T A C C O UN TIN G POL ICIE S 2.1

Basis of Preparation The financial statements are prepared in accordance with Singapore Financial Reporting Standards (“FRS”). The financial statements, expressed in Singapore Dollar (SGD or S$) are prepared on the historical cost convention, except as disclosed in the accounting policies below. The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the financial year. Although these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates. Critical accounting estimates and assumptions used that are significant to the financial statements, and areas involving a higher degree of judgement or complexity, are disclosed in Note 3.


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REPORT

2016:

FINANCIAL

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50

In the current financial year, the Group has adopted all the new and revised FRSs and Interpretations of FRS (“INT FRS”) that are relevant to its operations and effective for annual periods beginning on or after 1 July 2015. The adoption of these new/revised FRSs and INT FRSs does not result in changes to the Group’s accounting policies and has no material effect on the amounts reported for the current or prior years. 2.2

Group Accounting Basis of Consolidation The financial statements of the Company for the year ended 30 June 2016 relate to the Company and its subsidiaries (together referred as the “Group”). Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases. In preparing the consolidated financial statements, intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated; unrealised losses are also eliminated unless cost cannot be recovered. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure consistency of accounting policies with those of the Group. The acquisition method of accounting is used to account for business combinations by the Group. Acquisition-related costs are expensed as incurred. The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill. Please refer to Note 2.18.2 for the subsequent accounting policy on goodwill.

2.3

Investments in Subsidiaries Subsidiaries are entities over which the Group has power to govern the financial and operating policies so as to obtain benefits from its activities, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

Non-controlling interests is that part of the net results of operations and of net assets of a subsidiary attributable to interests which are not owned directly or indirectly by the equity holders of the Company. They are shown separately in the consolidated statement of comprehensive income, statement of changes in equity and statement of financial position. Total comprehensive income is attributed to the non-controlling interests based on their respective interests in a subsidiary, even if this results in the non-controlling interests having a deficit balance. Investments in subsidiaries are stated at cost less accumulated impairment losses in the Company’s statement of financial position. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of an investment in subsidiaries, the difference between net disposal proceeds and its carrying amount is taken to the statement of comprehensive income. When a change in the Company’s ownership interest in a subsidiary results in a loss of control over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are derecognised. Amounts recognised in other comprehensive income in respect of that entity are also reclassified to profit or loss or transferred directly to retained earnings if required by a specific Standard. Any retained interest in the entity is remeasured at fair value. The difference between the carrying amount of the retained investment at the date when control is lost and its fair value is recognised in profit or loss. Changes in the Company’s ownership interest in a subsidiary that does not result in a loss of control are accounted for as equity transactions. In such circumstances, the carrying amount of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount of which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributable to owners of the parent. 2.4

Property, Plant and Equipment 2.4.1

Measurement Items of property, plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. Freehold property is stated in the statement of financial position at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are carried out by an independent professional valuer once every two financial years such that the carrying amount does not differ materially from that which would be determined using fair values at the statement of financial position date.


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Any revaluation increase arising on the revaluation of the freehold property is credited to the property revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised in the statement of comprehensive income, in which case the increase is credited to the statement of comprehensive income to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of freehold property is charged to the statement of comprehensive income to the extent that it exceeds the balance, if any, held in the property revaluation reserve relating to a previous revaluation of that asset. 2.4.2

Components of Costs The cost of an item of property, plant and equipment includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

2.4.3

Leased Assets Leases in terms of which the Group assumes substantially all risks and rewards of ownership are classified as finance leases. Property, plant and equipment acquired by finance leases is stated at an amount equal to the lower of its fair value and the present value of the minimum lease payments at the inception of the lease, less accumulated depreciation and impairment losses.

2.4.4

Depreciation Depreciation on property, plant and equipment is calculated using the straight line method to allocate their depreciable amounts over their estimated useful lives as follows: Years Freehold property Furniture and fittings

30 5

Office equipment

5

Renovation

5

The useful lives of property, plant and equipment are reviewed and adjusted as appropriate at each statement of financial position date. Fully depreciated assets are retained in the financial statements until they are no longer in use. No depreciation is provided on property, plant and equipment which is still under construction.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

2.4.5

Subsequent Expenditure Subsequent expenditure relating to property, plant and equipment that has already been recognised is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of the standard of performance of the asset before the expenditure was made, will flow to the Group and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred.

2.4.6

Disposal On disposal of an item of property, plant and equipment, the difference between the net disposal proceeds and its carrying amount is taken to the statement of comprehensive income. Any amount in revaluation reserve relating to that asset is transferred to retained earnings.

2.5

Impairment of Non-Financial Assets 2.5.1

Property, Plant and Equipment Investments in Subsidiaries Property plant and equipment and investments in subsidiaries are reviewed for impairment whenever there is any indication that these assets may be impaired. If any such indication exists, the recoverable amount (i.e. the higher of the fair value less cost to sell and value in use) of the asset is estimated to determine the amount of impairment loss. For the purpose of impairment testing of these assets, recoverable amount is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. If this is the case, recoverable amount is determined for the Cash-Generating-Units CGU to which the asset belongs to. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The impairment loss is recognised in the statement of comprehensive income unless the asset is carried at revalued amount, in which case, such impairment loss is treated as a revaluation decrease. An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a change in the estimates used to determine the assets’ recoverable amount since the last impairment loss was recognised. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for an asset is recognised in the statement of comprehensive income, unless the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase.


ASSOCIATION

2.6

OF

MUSLIM

PROFESSIONALS

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ANNUAL

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2016:

FINANCIAL

STATEMENTS

54

Financial Assets 2.6.1

Initial Recognition and Measurement Financial assets are recognised on the statement of financial position when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial assets at initial recognition. When financial assets are recognised initially, they are measured as fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs.

2.6.2

Subsequent Measurement The subsequent measurement of financial assets depends on their classification as follows: i. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. This category includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by FRS 39. Derivatives, including separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. The Group has not designated any financial assets upon initial recognition at fair value through profit or loss. Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value. Any gains or losses arising from changes in fair value of the financial assets are recognised in profit or loss. Net gains or net losses on financial assets at fair value through profit or loss include exchange differences, interest and dividend income. Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

ii. Loans and receivables Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, and through the amortisation process. iii. Held-to-maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Group has the positive intention and ability to hold the investment to maturity. Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the held-to-maturity investments are derecognised or impaired, and through the amortisation process. iv. Available-for-sale financial assets Available for-sale financial assets include equity and debts securities. Equity investments classified as available-for-sale are those, which are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those which are intended to be held for an indefinite period of time and which may be sold in response to needs for liquidity or in response to changes in the market conditions. After initial recognition, available-for-sale financial assets are subsequently measured at fair value. Any gains or losses from changes in fair value of the financial asset are recognised in other comprehensive income, except that impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is derecognised. Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss. 2.6.3

Derecognition A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss.


ASSOCIATION

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MUSLIM

PROFESSIONALS

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ANNUAL

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2016:

FINANCIAL

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56

All regular way purchases and sales of financial assets are recognised or derecognised on the trade date i.e., the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concerned. 2.7

Impairment of Financial Assets The Group assesses at each end of the reporting period whether there is any objective evidence that a financial asset is impaired. 2.7.1

Financial Assets Carried at Amortised Cost For financial assets carried at amortised cost, the Group first assesses individually whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be recognised are not included in a collective assessment of impairment. If there is objective evidence that an impairment loss on financial assets carried at amortised cost has incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The impairment loss is recognised in profit or loss. When the asset becomes uncollectible, the carrying amount of impaired financial assets is reduced directly or if an amount was charged to the allowance account, the amounts charged to the allowance account are written off against the carrying value of the financial asset. To determine whether there is objective evidence that an impairment loss on financial assets has incurred, the Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

2.7.2

Financial Assets Carried at Cost If there is objective evidence (such as significant adverse changes in the business environment where the issuer operates, probability of insolvency or significant financial difficulties of the issuer) that an impairment loss on financial assets carried at cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed in subsequent periods.

2.7.3

Available-For-Sale Financial Assets In the case of equity investments classified as available-for-sale, objective evidence of impairment include: i. significant financial difficulty of the issuer or obligor, ii. information about significant changes with an adverse effect that have taken place in the technological, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in equity instrument may not be recovered; and iii. a significant or prolonged decline in the fair value of the investment below its costs. ‘Significant’ is to be evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost. If an available-for-sale financial asset is impaired, an amount comprising the difference between its acquisition cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss previously recognised in profit or loss is transferred from other comprehensive income and recognised in profit or loss. Reversals of impairment losses in respect of equity instruments are not recognised in profit or loss; increase in their fair value after impairment are recognised directly in other comprehensive income. In the case of debt instruments classified as available-for-sale, impairment is assessed based on the same criteria as financial assets carried at amortised cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in profit or loss. Future interest income continues to be accrued based on the reduced carrying amount of the asset and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income. If, in a subsequent year, the fair value of a debt instrument increases and the increases can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed in profit or loss.


ASSOCIATION

2.8

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

58

Financial Liabilities 2.8.1

Initial Recognition and Measurement Financial liabilities are recognised on the statement of financial position when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of other financial liabilities, plus directly attributable transaction costs.

2.8.2

Subsequent Measurement The measurement of financial liabilities depends on their classification as follows: i. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss includes financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This category includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair value. Any gains or losses arising from changes in fair value of the financial liabilities are recognised in profit or loss. The Group has not designated any financial liabilities upon initial recognition at fair value through profit or loss. ii. Other financial liabilities After initial recognition, other financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.

2.8.3

Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

2.9

Fair Value Estimation The fair values of financial instruments traded in active markets are based on quoted market prices at the statement of financial position date. The quoted market prices used for financial assets held by the Group are the current bid prices; the appropriate quoted market prices for financial liabilities are the current ask prices. The fair values of financial instruments that are not traded in an active market are determined by using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each statement of financial position date. Quoted market prices or dealer quotes for similar instruments are used where appropriate. Other techniques, such as estimated discounted cash flows, are also used to determine the fair values of the financial instruments. The carrying amounts of current receivables and payables are assumed to approximate their fair values. The fair values of non-current receivables for disclosure purposes are estimated by discounting the future contractual cash flows at the current market interest rates that are available to the Group for similar financial instruments.

2.10

Cash and Cash Equivalents Cash and cash equivalents comprise cash balances and bank deposits. For the purpose of the statement of cash flows, cash and cash equivalents are presented net of bank overdrafts which are repayable on demand and which form an integral part of the Group's cash management.

2.11

Income Taxes Current income tax liabilities (and assets) for the current and prior periods are recognised at the amounts expected to be paid to (or recovered from) the tax authorities. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted by the statement of financial position date. Deferred income tax assets/liabilities are recognised for all deductible taxable temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax assets/liabilities arise from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax liability is recognised on temporary differences arising on investments in subsidiaries, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

60

Deferred income tax assets and liabilities are measured at: i.

the tax rates that are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted by the statement of financial position date; and

ii.

the tax consequence that would follow from the manner in which the Group expects, at the statement of financial position date, to recover or settle the carrying amounts of its assets and liabilities.

Current and deferred income taxes are recognised as income or expenses in the statement of comprehensive income for the period, except to the extent that the tax arises from a business combination or a transaction which is recognised directly in equity. Deferred tax on temporary differences arising from the revaluation gains and losses on land and buildings, fair value gains and losses on available-for-sale financial assets and cash flow hedges, and the liability component of convertible debts are charged or credited directly to equity in the same period the temporary differences arise. Deferred tax arising from a business combination is adjusted against goodwill on acquisition. 2.12

Functional and Presentation Currency 2.12.1 Functional and Presentation Currency Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the Group operates (“the functional currency”). The financial statements are presented in Singapore Dollar (SGD), which is the Group’s functional and presentation currency. 2.12.2 Foreign Currencies Transactions Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates prevailing at the date of the transactions. Currency translation gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

2.13

Revenue Recognition Donations from individuals, companies and other organisations are recorded when received. The Company derives approximately 6.40% (2015: 8%) of the voluntary donations in the form of cash. Due to the nature of these donations, the Company has limited accounting controls over the contributions prior to the initial entry in the accounting records. Government matching grant, MBMF, school fees, tuition fees and other income are accounted for on the accrual basis.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

Revenue from projects undertaken by a subsidiary, Centre for Research on Islamic and Malay Affairs Pte Ltd, is recognised based on the percentage-of-completion method. The percentage-of-completion for a given project is determined based on costs incurred to date as a percentage of total estimated costs of the project. Project costs include subcontractor costs, direct staff salaries and other related overhead expenses. Provisions for foreseeable losses on uncompleted projects are made in the year in which such losses are determined. 2.14

Government Grants Grants from the government are recognised as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. Government grants receivable are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income. Government grants relating to assets are deducted against the carrying amount of the assets. Jobs credit grants, which are government grants given to match staff and business costs, are recognised in the month of payment only as certain conditions have to be fulfilled before payment.

2.15

Employee Benefits 2.15.1 Defined Contribution Pension Costs The Group makes contributions to the Central Provident Fund Scheme in Singapore, a defined contribution pension scheme. These contributions are recognised as an expense in the period in which the related service is performed. 2.15.2 Employee Leave Entitlement Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for leave as a result of services rendered by employees up to statement of financial position date.

2.16

Finance Costs Interest expense and similar charges are expensed in the statement of comprehensive income in the period in which they are incurred, except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to be prepared for its intended use or sale. The interest component of finance lease payments is recognised in the statement of comprehensive income using the effective interest rate method.


ASSOCIATION

2.17

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

62

Accumulated Fund 2.17.1 Unrestricted Funds Unrestricted funds are available for use at the discretion of the board of directors in the furtherance of the general objectives of the Company and which have not been designated for specific purposes. 2.17.2 Restricted Funds Restricted funds are funds which are to be used in accordance with specific restriction imposed by the fund providers. The aim and use of each restricted fund is set out in Note 14.

2.18

Intangible Assets 2.18.1 Other Intangible Assets Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite useful lives is recognised in profit or loss in the expense category consistent with the function of the intangible asset. Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually or more frequently if the events and circumstances indicate that the carrying value may be impaired either individually or at the cash-generating unit level. Such intangible assets are not amortised. The useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is derecognised.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

2.18.2 Goodwill on Acquisitions Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of their identifiable net assets and contingent liabilities of the acquired subsidiaries, joint ventures and associated companies at the date of acquisition. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase. Goodwill on subsidiaries is recognised separately as intangible assets and carried at cost less accumulated impairment losses. Goodwill on associated companies is included in the carrying amount of the investments. Gains and losses on the disposal of subsidiaries include the carrying amount of goodwill relating to the entity sold, except for goodwill arising from acquisitions prior to 1 January 2001. Such goodwill was adjusted against retained earnings in the year of acquisition and not recognised in the statement of comprehensive income on disposal. The amortisation period and amortisation method of intangible assets other than goodwill are reviewed at least at each statement of financial position date. The effects of any revision are recognised in the statement of comprehensive income when the changes arise. 2.19

Related Parties A related party is defined as follows: a.

b.

A person or a close member of that person’s family is related to the Group and the Company if that person: i.

Has control or joint control over the Company;

ii.

Has significant influence over the Company; or

iii.

Is a member of the key management personnel of the Group or Company or of a parent of the Company.

An entity is related to the Group and the Company if any of the following conditions applies: i.

The entity and the Company are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

ii.

One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).

iii.

Both entities are joint ventures of the same third party.

iv.

One entity is a joint venture of a third entity and the other entity is an associate of the third entity.


ASSOCIATION

OF

MUSLIM

v.

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

64

The entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Company. If the Company is itself such a plan, the sponsoring employers are also related to the Company;

vi.

The entity is controlled or jointly controlled by a person identified in (a);

vii.

A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

2.20

Leases 2.20.1 Operating Leases Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are taken to the statement of comprehensive income on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place. 2.20.2 Finance Leases Leases of assets in which the Company assumes substantially the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in borrowings. The interest element of the finance cost is taken to the statement of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

2.21

Provisions Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is more likely than not that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as finance costs.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

Provisions are reviewed at each statement of financial position date and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

3

C RI T I C A L A C C O UN T I N G E ST I MAT E S A N D JUD G E M E N T Estimates and judgement are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Property, Plant and Equipment and Depreciation The Group’s management determines the estimated useful lives and related depreciation charges for its property, plant and equipment. This estimate is based on the historical experience of the actual useful lives of property, plant and equipment of similar nature and functions. It could change significantly as a result of technical innovations and competitor actions in response to severe industry cycles. Management will increase the depreciation charge where useful lives are less than previously estimated lives, or it will write-off or write-down technically obsolete assets that have been abandoned or sold. Allowance for Doubtful Debts Allowance for bad and doubtful debts are based on an assessment of the recoverability of trade and other receivables. Allowances are applied to trade and other receivables where events or changes in circumstances indicate that the balances may not be collectible. The indication of bad and doubtful debts requires the use of judgement and estimates. Where the expected outcome is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimates have been changed. Impairment of Investment and Financial Assets The Group follows the guidance of FRS 36 and FRS 39 in determining when an investment or financial assets is other-thantemporary impaired. This assessment requires significant judgement. The Group evaluates, among other factors, the duration and extent to which the fair value of an investment or financial asset is less than its cost; and the financial health of and near-term business outlook for the investment or financial asset, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.


ASSOCIATION

4

OF

MUSLIM

PROFESSIONALS

ANNUAL

|

REPORT

2016:

FINANCIAL

STATEMENTS

66

P ROP ERT Y, PLA N T A N D E Q UI PME N T

Group Valuation 2016 Cost/Valuation At beginning of year Additions Revaluation Reversal of depreciation on revaluation

Cost

Freehold

Furniture and

Office

Property

fittings

equipment

Renovation

Total

S$

S$

S$

S$

S$

7,800,000

779,853

909,731

1,340,539

10,830,123

110,432

270,350

37,938

418,720

714,285

714,285

(1,114,285)

(1,114,285)

7,400,000

890,285

1,180,081

1,378,477

10,848,843

At beginning of year

649,999

486,310

646,091

589,596

2,371,996

Depreciation

567,065

133,909

182,317

225,729

1,109,020

At end of year Accumulated Depreciation

Reversal of depreciation on revaluation At end of year

(1,114,285)

(1,114,285)

102,779

620,219

828,408

815,325

2,366,731

7,297,221

270,066

351,673

563,152

8,482,112

Carrying Amount At end of year


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

4

PROP ERT Y, P L A N T A N D E Q UI PM E N T

Group

– cont’d

– cont’d

Valuation 2015

Cost

Freehold

Furniture and

Office

Property

fittings

equipment

Renovation

in progress

Total

S$

S$

S$

S$

S$

S$

7,800,000

812,136

1,086,264

1,088,310

26,053

10,812,763

Additions

155,571

127,672

491,197

774,440

Reclassification

26,053

(26,053)

-

Cost/Valuation At beginning of year

Disposals At end of year

Renovation

(187,854)

(304,205)

(265,021)

(757,080)

7,800,000

779,853

909,731

1,340,539

10,830,123

Accumulated Depreciation At beginning of year Depreciation Disposals At end of year

92,856

556,546

780,949

720,866

2,151,217

557,143

117,618

169,084

133,751

977,596

(187,854)

(303,942)

(265,021)

(756,817)

649,999

486,310

646,091

589,596

2,371,996

7,150,001

293,543

263,640

750,943

8,458,127

Carrying Amount At end of year


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

ANNUAL

|

REPORT

2016:

FINANCIAL

STATEMENTS

68

Company Valuation 2016 Cost/Valuation At beginning of year Additions Revaluation Reversal of depreciation on revaluation

Cost

Freehold

Furniture and

Office

Property

fittings

equipment

Renovation

Total

S$

S$

S$

S$

S$

7,800,000

585,940

521,795

1,313,479

10,221,214

63,337

198,463

22,760

284,560

714,285

714,285

(1,114,285)

(1,114,285)

7,400,000

649,277

720,258

1,336,239

10,105,774

At beginning of year

649,999

337,092

325,812

573,710

1,886,613

Depreciation

567,065

99,013

129,061

218,719

1,013,858

At end of year Accumulated Depreciation

Reversal of depreciation on revaluation At end of year

(1,114,285)

(1,114,285)

102,779

436,105

454,873

792,429

1,786,186

7,297,221

213,172

265,385

543,810

8,319,588

Carrying Amount At end of year


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

4

P ROP ERT Y, P LA N T A N D E Q UI PME N T

Company

– cont’d

– cont’d

Valuation 2015

Cost

Freehold

Furniture and

Office

Property

fittings

equipment

Renovation

in progress

Total

S$

S$

S$

S$

S$

S$

7,800,000

456,375

457,369

799,729

26,053

9,539,526

Additions

129,565

87,425

487,697

704,687

Reclassification

26,053

(26,053)

Cost/Valuation At beginning of year

Disposals At end of year

Renovation

(22,999)

-

(22,999)

7,800,000

585,940

521,795

1,313,479

10,221,214

92,856

259,989

235,320

445,021

1,033,186

557,143

77,103

113,228

128,689

876,163

Accumulated Depreciation At beginning of year Depreciation Disposals At end of year

(22,736)

-

(22,736)

649,999

337,092

325,812

573,710

1,886,613

7,150,001

248,848

195,983

739,769

8,334,601

Carrying Amount At end of year

The Group adopted the revaluation model for the freehold property. Revaluations are carried out by an independent professional valuer once every two financial years. A valuation for the premises at 150 Changi Road #04-06 & 04-07 Guthrie Building Singapore 419973 was performed by Robert Khan and Co. Pte Ltd for the year ended 30 June 2016. The valuation report dated 5 May 2016 indicated a market value of S$7,400,000 as at 27 April 2016. The market value was derived based on an open market value on an existing use basis. The carrying amount of freehold property would have been S$505,400 (2015: S$654,860) had the freehold property been carried at cost less accumulated depreciation and impairment losses. The carrying amount of property, plant and equipment of the Group and Company includes an amount of S$6,985 (2015: S$38,248) in respect of office equipment held under finance lease.


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

70

I N VES T M E N T S I N SUB SI D I A R I E S

5

Company

Unquoted equity shares, at cost Less:

2016

2015

S$

S$

500,000

500,000

(249,999)

(249,999)

250,001

250,001

Allowance for impairment Balance at beginning and end of year

The allowance for impairment at the end of the year is in respect of the Centre for Research on Islamic and Malay Affairs Pte Ltd (“RIMA”).

Country of incorporation

Effective equity held

and place of Name of company

Centre for Research on

Principal activities

To provide research and studies

Islamic and Malay

into the affairs of the

Affairs Pte Ltd*

Malay/Muslim community

Mercu Learning Point Pte Ltd*

To provide educational, training and childcare services

* Audited by Rohan • Mah & Partners LLP, Singapore

business

by the Company

Cost of investment

2016

2015

2016

2015

%

%

S$

S$

Singapore

100

100

250,000

250,000

Singapore

100

100

250,000

250,000


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

6

AVA I L A BL E– F O R – SA LE FI N A N C I A L A SSE TS Group and Company

Unquoted equity shares, at cost Less:

2016

2015

S$

S$

24,000

24,000

(23,999)

(23,999)

1

1

Allowance for impairment Balance at beginning and end of year

The available-for-sale financial assets is in respect of GEMA Holdings Limited, a company incorporated in Singapore. There is no active market for the investments in unquoted shares of GEMA. As such, it is not practicable to determine with sufficient reliability the fair values of the investment; hence it is stated at cost. The management does not anticipate that the carrying amount of the above investment in unquoted shares will be significantly in excess of the fair values.


ASSOCIATION

7

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

Company

2016

2015

2016

2015

S$

S$

S$

S$

197,910

116,320

61,866

18,000

Balance at beginning of year

17,378

Allowance written off

(17,378)

Balance at end of year

197,910

116,320

61,866

18,000

1,780,542

197,910

1,896,862

61,866

18,000

3,021,624

3,121,401

Balance at beginning of year

1,471,303

1,376,809

Allowance for the year (Note 16)

9,415

94,494

Balance at end of year

1,480,718

1,471,303

1,540,906

1,650,098

2,128,161

1,556,793

1,785,889

1,339,146

2,326,071

3,453,655

3,388,661

3,007,244

Trade receivables Allowance for impairment

Amount due from PPIS (Note 28) Amounts due from subsidiaries - non trade Less:

72

T RA D E AN D O T H E R R E C E I VA B LE S Group

Less:

STATEMENTS

Allowance for impairment

Deposits, prepayments and other receivables (Note 8)

Amounts due from subsidiaries are unsecured, non-interest bearing and repayable on demand. The Group and the Company do not have concentration of credit risk in respect of a customer or a group of customers.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

7

T R A D E A N D O T H E R R E C E I VA B LE S

– cont’d

The aging of trade receivables at the reporting date is: Group Trade receivables are non-interest bearing and are generally on 30 to 60 days' terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. The maximum exposure of credit risk for trade receivables at the reporting date is S$197,910 (2015: S$1,896,862). Gross

Impairment losses

Gross

Impairment losses

2016

2016

2015

2015

S$

S$

S$

S$

Not past due

61,930

467,427

Past due 0 - 30 days

77,540

428,660

Past due 31 - 60 days

16,042

17,592

Past due 61 - 90 days

11,789

406,387

More than 90 days

30,609

576,796

197,910

1,896,862

Company Trade receivables are non-interest bearing and are generally on a 30-day term. They are recognised at their original invoice amounts which represent their fair values on initial recognition. The maximum exposure of credit risk for trade receivables at the reporting date S$61,866 (2015: S$18,000). Gross

Impairment losses

Gross

Impairment losses

2016

2016

2015

2015

S$

S$

S$

S$

2,746

2,924

55,597

4,253

Past due 31 - 60 days

2,843

10,820

Past due 61 - 90 days

3

680

61,866

18,000

Not past due Past due 0 - 30 days

More than 90 days


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

74

Based on historical default rates, the Group and the Company believe that no impairment allowance is necessary in respect of trade receivables past due up to 90 days. These receivables are mainly arising by customers that have good record with the Group and the Company. The carrying amounts of trade and other receivables approximate their fair values and are denominated in Singapore Dollar. 8

D EP OS I TS, PR E PAY ME N T S A N D O TH E R RE CE IVABL E S Group

Company

2016

2015

2016

2015

S$

S$

S$

S$

Government matching grant (Note 15)

800,000

800,000

800,000

800,000

MBMF grant

343,000

294,000

343,000

294,000

Deposits

118,129

113,311

62,852

63,123

Prepayments

196,878

216,863

61,976

53,663

Sundry receivables

9

670,154

132,619

518,061

128,360

2,128,161

1,556,793

1,785,889

1,339,146

C A S H A N D C A SH E Q UI VA LE N T S Group

Company

2016

2015

2016

2015

S$

S$

S$

S$

Cash at bank and in hand

4,841,195

2,868,016

2,941,534

1,988,300

Fixed deposits

2,054,933

1,875,541

2,046,014

1,866,622

6,896,128

4,743,557

4,987,548

3,854,922

Fixed deposits have an average maturity of 6 to 12 months (2015: 5 to 8 months) from the end of the financial year, which can be withdrawn on demand, with the weighted average effective interest rates of 0.895% (2015: 0.647%) and 0.895% (2015: 0.647%) for the Group and the Company respectively.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

10

T R A D E A N D O T H E R PAYA B LE S Group

Trade payables

Company

2016

2015

2016

2015

S$

S$

S$

S$

69,484

138,438

41,396

43,376

Amount due to PPIS - trade (Note 28)

1,320,591

Amount due to PPIS - non-trade (Note 28)

413,452

Amounts due to subsidiaries – non-trade

2,302,962

3,207,218

1,581,202

1,387,708

416,956

412,900

24,504

13,172

24,504

13,172

557,768

472,799

413,478

366,032

1,595,087

424,614

1,536,783

376,404

Accrued operating expenses Other payables Deposits received Deferred income GST payables

145,401

100,726

3,973,446

4,271,500

4,736,079

4,419,102

70,223

69,545

70,223

69,545

323,486

327,309

323,486

327,309

(6,843)

(6,971)

(6,843)

(6,971)

Amount due to Madrasah Aljunied * Balance at beginning of year Add: Receipts during the year Less:

Administrative expenses Management fees Disbursement during the year

Balance at end of year

(37,997)

(38,441)

(37,997)

(38,441)

(279,091)

(281,219)

(279,091)

(281,219)

(445)

678

(445)

678

69,778

70,223

69,778

70,223

9,204

18,588

9,204

18,588

18,718

19,133

18,718

19,133

(278)

(289)

(278)

(289)

Amount due to Abdul Gafoor Mosque ** Balance at beginning of year Add: Receipts during the year Less:

Administrative expenses Management fees Disbursement during the year

(369)

(377)

(369)

(377)

(18,331)

(27,851)

(18,331)

(27,851)

(260)

(9,384)

(260)

(9,384)

8,944

9,204

8,944

9,204

200

5,678

200

5,678

Add: Receipts during the year

70,010

70,010

Less:

(1,000)

(1,000)

(200)

(74,488)

(200)

(74,488)

(200)

(5,478)

(200)

(5,478)

200

200

4,052,168

4,351,127

4,814,801

4,498,729

Balance at end of year Amount due to Kimse Yokmu (ASRIT project)*** Balance at beginning of year Administrative expenses Disbursement during the year Balance at end of year


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

76

Trade payables are non-interest bearing. Trade and other payables are normally settled on 30 to 60 days’ terms. Amounts due to subsidiaries are unsecured, non-interest bearing and are repayable on demand. Included in accrued operating expenses is accrual for bonus amounting to S$1,038,709 (2015: S$839,067) and S$228,528 (2015: S$221,940) for the Group and Company respectively. *

The Company provides the Madrasah Aljunied Al-Islamiah (“MAJ”), a committee constituted and authorised by Majlis Ugama Islam Singapura (“the Majlis”), with management assistance to raise funds for the Madrasah Aljunied Education and Adminstration Fund.

**

The Company provides the Abdul Gafoor Mosque Management Board (“AGMB”), a committee constituted and authorised by the Majlis, with management assistance to raise funds for Abdul Gafoor Mosque.

*** The Company raised funds for the Syrian refugees aided by Kim Se Yokmu, a registered Aid Agency in Turkey. The amounts received during the year represents only those that are collected by the Company. The carrying amounts of trade and other payables approximate their fair values and are denominated in Singapore Dollar. 11

D EF ERRE D TA X AT I O N Group

Balance at beginning of the year Charged to statement of comprehensive income (Note 20) Balance at end of the year

2016

2015

S$

S$

122,305

105,448

26,336

16,857

148,641

122,305


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

12

O BL I GAT I ON UN D E R FI N A N C E LE A SE The Group and the Company has obligations under finance lease for certain items of property, plant and equipment. These leases have terms of renewal but no purchase options and escalation clauses. Renewals are at the option of the specific entity that holds the lease. Future minimum lease payments under finance lease together with the present value of the net minimum lease payments are as follows:

Group and Company 2016

Within 1 year After 1 year but within 5 years Total minimum lease payments Less: Finance Charges Present value of minimum lease payments

a.

2016

2015

2015

S$

S$

S$

S$

Minimum lease

Present value of

Minimum lease

Present value of

payments

payments

payments

payments

7,333

6,985

33,165

31,263

7,333

6,985

7,333

6,985

40,498

38,248

(348)

(2,250)

6,985

6,985

38,248

38,248

The average lease term is 3 years. For the year ended 30 June 2016, the average effective borrowing rate was 4.84% (2015: 4.90%) per annum. Interest rate is fixed at the contract date, and thus exposes the Group and the Company to fair value interest rate risk. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

b.

The carrying amounts of the Group and the Company’s lease obligations approximate their fair values and are denominated in Singapore Dollar.

c.

The Group and the Company’s obligations under finance leases are secured by the lessee’s title to the leased assets.


ASSOCIATION

13

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

78

P ROP ERTY R E VA LUAT I O N R E SE RV E Group and Company

At beginning of year Revaluation gain At end of year

14

2016

2015

S$

S$

5,498,034

5,498,034

714,285

–

6,212,319

5,498,034

RES T RI CT E D FUN D S a.

Fund movement

Group and Company Dedicated Centre for Marriages &

Ready For School

Divorces (DDC) *

Fund **

Operation Grant

Donations

Total

S$

S$

S$

6,159

284,457

290,616

Incoming resources

322,725

323,197

645,922

Transfer from Unrestricted Fund

308,115

114,863

422,978

(604,816)

(382,867)

(987,683)

32,183

339,650

371,833

2016 Balance at beginning of the year

Expenditure Balance at end of the year 2015 Balance at beginning of the year Incoming resources Transfer from Unrestricted Fund Expenditure Balance at end of the year

3,327

43,977

47,304

275,407

445,676

721,083

284,409

96,929

381,338

(556,984)

(302,125)

(859,109)

6,159

284,457

290,616


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

b.

Description *

The restricted fund is for the Dedicated Centre for Marriages & Divorces (“DDC”), also known as Inspirasi@AMP, which has been set up as an intervention centre for marriages and divorces involving Muslim minors. The Centre is funded by the Ministry of Social and Family Development (“MSF”).

**

The Company’s Ready for School Fund was established as a restricted fund in July 2007. The income sources of the Fund are public donations and projects specifically in aid of the Fund. The purpose of the Fund is to aid disadvantaged school-going children of all races in essential school expenditures including school and tuition fee subsidies, enrichment programmes subsidies, transportation expense and other financial assistance.

15

R E VENU E Group

Donations *

Company

2016

2015

2016

2015

S$

S$

S$

S$

2,868,266

2,350,045

2,868,266

2,350,045

Government matching grant **

800,000

950,000

800,000

950,000

MBMF grant

696,654

665,601

696,654

665,601

Other grants ***

1,313,101

601,483

1,313,101

601,483

Childcare centre fees and subsidies

3,954,053

2,917,072

3,722,350

2,917,072

Management fees - PPIS (Note 28)

1,150,383

4,465,438

750,341

762,772

Pre-school centre fees Tuition and enrichment service centres Student care fees and subsidies Research income Training and education projects Social action programmes

925,786

4,502,010

2,768,638

3,458,263

2,768,638

319

143

63,299

59,919

63,299

59,919

736,596

720,259

736,596

720,259

16,835,022

17,187,156

13,658,529

11,033,017

*

Included in donations is zakat contribution amounting to S$1,039,189 (2015: S$961,761).

**

The government matching grant is capped at S$800,000 (2015: S$800,000). Included in government matching grant is the Company’s share of a government matching grant for community self-help organisations of S$800,000 (2015: S$950,000) which relates to the donations received during the year ended 30 June 2016.

*** Other grants in 2016 include grants received from Care & Share.


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

80

EX P END I T UR E

16

Group

Social action programme – (Al-Hijrah) Fund raising projects Contributions for community projects Research

Company

2016

2015

2016

2015

S$

S$

S$

S$

1,742,488

1,715,206

1,801,778

1,758,078

310,647

331,533

310,647

331,533

37,029

57,648

37,029

57,648

245,611

143,015

298,406

115,000

Pre-school centres

690,432

637,970

Childcare centres

2,626,012

2,206,721

Student care centres

4,136,445

3,314,931

220,022

186,584

220,022

186,584

Adult education and training Tuition and enrichment centres

35,374

Corporate services *

648,435

243,344

648,435

217,094

Management information systems

296,431

262,583

296,431

262,583

6,730,382

5,685,845

Management fees (Note 23) Partner Operator Scheme (POP) grant (Note 23)

450,230

Cost of services – PPIS (Note 28)

991,317

3,605,513

Human resource/volunteer management

364,786

289,729

364,786

289,729

4,437,110

4,094,341

2,289,174

2,087,221

9,415

94,494

16,746,765

17,124,492

13,456,735

11,085,809

General administrative expenditure and overheads Impairment loss of subsidiary receivables **

The above expenditure includes the following: Group

Depreciation Loss on disposal of property, plant and equipment Staff costs (Note 18)

Company

2016

2015

2016

2015

S$

S$

S$

S$

1,109,020

977,598

1,013,858

876,165

262

9,413,790

7,931,467

2,708,296

2,449,871

300,000

40,300

35,000

Donation to Singapore Management University (SMU) *** Zakat


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

16

EXP EN D I T U RE *

– cont’d

The amount includes S$328,850 used on Debt Advisory Centre (“DAC”) Awareness Television Series (Buku 555) and AMP-BH coffee table book.

**

The impairment loss of subsidiary receivables for the year is in respect of the RIMA (Note 7).

*** This is a one-time donation towards MERCU-SMU Excellence Scholarship for Malay-Muslim undergraduates. The scholarship disbursement is managed by SMU. 17

OT HER I N C OM E Group

Corporate service fees (Note 23) Government grants * Rental income (Note 23) Internal audit (Note 23) Miscellaneous income

*

Company

2016

2015

2016

2015

S$

S$

S$

S$

22,000

25,500

561,104

354,244

247,324

198,418

18,750

18,643

48,373

20,675

16,003

579,747

402,617

289,999

258,671

Government grants of the Group include wage credit scheme amounting to S$407,261 (2015: S$289,677).


ASSOCIATION

18

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

82

S TA F F C O ST S Group 2016

Company 2015

2016

2015

S$

S$

S$

S$

Staff salaries and related costs

8,264,772

6,967,032

2,343,348

2,125,292

Defined contribution pension costs

1,149,018

964,435

364,948

324,579

9,413,790

7,931,467

2,708,296

2,449,871

1,202,617

1,158,118

1,030,320

993,569

Included in staff costs are remunerations of key management

The number of key management personnel whose remuneration is within the S$100,001 to S$150,000 band is two (2015: two). Key management personnel comprise the Executive Director and the direct reporting senior officers. 19

F I NA N C I A L E X PE N SE S Group

Bank charges Finance lease interest

Company

2016

2015

2016

2015

S$

S$

S$

S$

18,173

13,170

6,935

4,542

1,904

2,956

1,904

2,956

20,077

16,126

8,839

7,498


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

20

TA X AT I ON Company The Company is an approved charity under the Charities Act, Cap. 37 and has been accorded the status of an Institution of a Public Character (IPC) for the period from 10 October 2014 to 9 October 2018. All registered and exempt charities will enjoy automatic income tax exemption and do not need to file income tax returns effective from the Year of Assessment 2009. Group Major components of income tax expense are as follows: Group

Current year taxation Deferred taxation (Note 11)

2016

2015

S$

S$

(26,336)

(16,857)

(26,336)

(16,857)

A reconciliation between the tax expense and the product of accounting result multiplied by the applicable tax rate are as follows: Group 2016

2015

S$

S$

Profit before taxation

664,909

461,263

Tax expense on profit before tax at 17%

113,035

78,415

67,773

17,244

Tax effect of expenses not deductible for tax purposes Tax effect of income not deductible for tax purposes Utilisation of capital allowance Unutilised of tax losses

(1,777)

(7,292)

(94,241)

(53,383)

1,801

16,864

Deferred taxation

(26,336)

(16,857)

Tax exemption

(86,591)

(51,848)

Tax expense

(26,336)

(16,857)


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

84

Unrecognised deferred tax assets The subsidiaries’ deferred tax assets in respect of the following items have not been recognised in the financial statements as the probability of future taxable profits being available to utilise such benefits cannot be reliably established: Group

Unutilised tax losses

2016

2015

S$

S$

275,526

211,969

The Group’s unutilised capital allowances and tax losses are available for offset against future taxable profits subject to the agreement of the tax authorities and compliance with certain provisions of the Singapore Income Tax Act, Cap.134. 21

TA X -EX E M PT R E C E I PT S The Company enjoys a concessionary tax treatment whereby qualifying donors are granted double tax deduction for the donations made to the Company. The Company is an approved charity under the Charities Act, Cap. 37 and has been accorded the status of an Institution of a Public Character (IPC) for the period from 10 October 2014 to 9 October 2018. Qualifying donors are granted 2.5 times tax deduction for the donations made to the Company. In conjunction with SG50, the Government has decided to increase the tax deduction for qualifying donations from 2.5 to 3.0 times of the amount of donation made in 2015. The 3.0 times deduction for donations made from 1 January 2015 to 31 December 2015 (both dates inclusive) will be allowed to all existing qualifying donors (i.e. individuals, companies, trusts, bodies of persons, Hindu joint family). During the financial year, the Company issued tax-exempt receipts for donations collected amounting to S$1,406,042 (2015: S$1,100,021).

22

OP ERAT I N G LE A SE C O M M I T ME NTS Rental expenses (principally for office premises and office equipment) for the Group for the year ended 30 June 2016 were S$842,723 (2015: S$701,541). Most leases contain renewable options. Lease terms do not contain restrictions on the Group’s activities concerning dividends, additional debts or further leasing. The leases have varying terms and renewal rights and their lease terms are between 2 and 5 years.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

22

O P ERAT I N G L E A SE C O M M I T ME N T S

– cont’d

Future minimum rental under non-cancellable leases are as follows as at 30 June: Group

Company

2016

2015

2016

2015

S$

S$

S$

S$

Within 1 year

436,587

241,537

246,834

227,809

After 1 year but within 5 years

232,908

58,397

14,346

25,380

669,495

299,934

261,180

253,189

Payable:

23

S IGNI F I C A NT R E LAT E D PA R T Y T R A N SACTION S A related party includes the trustees/office bearers (that is, directors) and key management of the Company. It also includes an entity or person that directly or indirectly controls, is controlled by, or is under common or joint control with these persons. It also includes members of the key management personnel or close members of the family of any individual referred to herein and others who have the ability to control, jointly control or significantly influence by or for which significant voting power in such entity resides with, directly or indirectly, any such individual. Key management personnel include the Executive Director and key executives. It is not the normal practice for the trustees/office bearers, or people connected with them, to receive remuneration, or other benefits, from the Company for which they are responsible, or from institutions connected with the Company except that the Executive Director and the direct reporting senior officers have employment relationships with the Company and its subsidiaries and have received remuneration in these capacities. All board members, chairman of sub-committees and staff members of the Company are required to read and understand the conflict of interest policy in place and make full disclosure of interests, relationships and holdings that could potentially result in conflict of interests. When a conflict of interest situation arises, the members or staff shall abstain from participating in the discussion, decision making and voting on the matters.


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

86

Except for the significant related parties transactions on terms agreed between the Company and its related parties as disclosed below, there are no other transaction and arrangements between the Company and related parties: Company 2016

2015

S$

S$

22,000

25,500

247,324

198,418

18,750

Income Corporate service fees from subsidiaries (Note 17) Rental income from a subsidiary (Note 17) Internal audit (Note 17) Expenses Fee subsidies Management fees to a subsidiary (Note 16)*

59,290

41,542

6,730,382

5,685,845

Grant charged by subsidiary – POP (Note 16)*

450,230

-

Research fees to a subsidiary

298,406

115,000

-

1,331

131,873

116,446

Innovation grant Share of expenses

Balance with related parties at the statement of financial position date are set out in Notes 7 and 10. Compensation to key management personnel are disclosed in Note 18. The Company’s directors (excluding the Executive Director) were not paid any remuneration or given any benefits during the financial period. There were no loans given to employees, committee members or any other third parties during the financial period. *

Management fees to Mercu Learning Point Pte Ltd (“Mercu”) relates to the running of the childcare and student care centres. The child care has obtained the Early Childhood Development Agency (“ECDA”) Partner Operator (“POP”) scheme. The POP scheme supports child care operators to keep fees affordable, build capabilities to raise quality, and improve career prospects for early childhood professionals. The scheme commenced in 2016.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

24

C ON T I N GENT LI A B I LI T I E S ( UN SE C UR E D) During the year, the Company has given an undertaking to one of its subsidiaries to provide the necessary financial support in order to enable the subsidiary to continue as a going concern. As at the end of the financial year, the subsidiary has a capital deficit of S$1,439,027 (2015: S$1,436,272).

25

FUN D RA I S I N G A N D SPO N SO R SH I P E XPE N S E S The Company’s total fund raising and sponsorship expenses was S$310,647 (2015: S$331,533) which is less than 30% of the total gross receipts from fund raising and sponsorships of S$2,868,266 (2015: S$2,350,045) raised during the year. During the year, the total fund raising and sponsorship expenses include all expenses classified under fund raising projects, while the total gross receipts from fund raising and sponsorships include all donations received.

26

FINA N C I A L I N ST R UM E N T S Categories of Financial Instruments The carrying amounts presented in the statement of financial position relate to the following categories of financial assets and financial liabilities: Group

Company

2016

2015

2016

2015

S$

S$

S$

S$

Trade and other receivables

2,129,193

3,236,792

3,326,685

2,953,581

Cash and cash equivalents

6,896,128

4,743,557

4,987,548

3,854,922

9,025,321

7,980,349

8,314,233

6,808,503

Financial assets Loans and receivables:

Financial liabilities Financial liabilities measured at amortised cost: Obligations under finance leases Trade and other payables

6,985

38,248

6,985

38,248

2,457,081

3,926,513

3,278,018

4,122,325

2,464,066

3,964,761

3,285,003

4,160,573


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

88

Financial Risk Management Objectives and Policies The main risks arising from the Group’s financial instruments are credit risk, foreign currency, and interest rate risk and liquidity risk. The management reviews and agrees policies for managing this risk and the policies of managing each of these risks are summarised below: Credit Risk Credit risk refers to the risk that counter parties may default on their contractual obligations resulting in a financial loss to the Group. The Group’s customer portfolio is diversified and there is no reliance on any customer. These exposures are monitored and provision for potential credit losses is adjusted when necessary. The aggregate amount of its trade and other receivables and bank balance represents the Group maximum exposure to credit risk. Cash and bank balances are placed with reputable local financial institutions. Therefore, credit risk arises mainly from the inability of the Group's customers to make payments when due. The amounts presented in the statement of financial position are net of allowances for impairment of trade receivables, estimated by management based on prior experience and the current economic environment. The Group monitors its credit collection regularly as a means of managing credit risk. Information regarding financial assets that are either past due or impaired is disclosed in Note 7 (Trade and other receivables). Foreign Currency Risk Foreign exchange risk arises from change in foreign exchange rates that may have an adverse effect on the Group in the current reporting period and in the future years. The Group’s exposure to foreign currency risk is minimal as all transactions are dealt with in local currency. Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

The tables below set out the Group’s exposure to interest rate risks. Included in the tables are the assets and liabilities at carrying amounts, categorised by the earlier of contractual repricing or maturity dates. Group Variable rates

Fixed rates

Less than 1 year

Less than 1 year

2 to 5 years

Total

S$

S$

S$

S$

Cash and cash equivalents

2,046,014

8,919

2,054,933

Obligation under finance lease

(6,985)

(6,985)

2,039,029

8,919

2,047,948

Cash and cash equivalents

1,875,541

1,875,541

Obligation under finance lease

(31,263)

(6,985)

(38,248)

1,844,278

(6,985)

1,837,293

2016 Assets

2015 Assets

Company Variable rates

Fixed rates

Less than 1 year

Less than 1 year

2 to 5 years

Total

S$

S$

S$

S$

Cash and cash equivalents

2,046,014

2,046,014

Obligation under finance lease

(6,985)

(6,985)

2,039,029

2,039,029

Cash and cash equivalents

1,866,622

1,866,622

Obligation under finance lease

(31,263)

(6,985)

(38,248)

1,835,359

(6,985)

1,828,374

2016 Assets

2015 Assets


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

90

Sensitivity analysis An increase or decrease in 100 basis point (“bp”) (1%) in interest rate at the reporting date would have no significant effect on equity and profit or loss (before tax). This analysis assumes that all other variables, in particular foreign currency rates, remain constant. Statement of Comprehensive Income Group

Company

S$

S$

20,549

20,460

(70)

(70)

20,479

20,390

18,755

18,666

(382)

(382)

18,373

18,284

2016 Cash and cash equivalents Obligation under finance leases 2015 Cash and cash equivalents Obligation under finance leases


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

Liquidity Risk Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. To manage liquidity risk, the Group monitors its net operating cash flow and maintains an adequate level of cash and cash equivalent. The table below summarises the maturity profile of the Group’s financial assets and liabilities at the end of the reporting period based on contractual undiscounted repayment obligations. Group Within 2 to 5

More than

Within 1 year

years

5 years

Total

S$

S$

S$

S$

2016 Financial assets Trade and other receivables

2,129,193

2,129,193

Cash and cash equivalents

6,887,209

8,919

6,896,128

Total undiscounted financial assets

9,016,402

8,919

9,025,321

6,985

6,985

Trade and other payables

2,457,081

2,457,081

Total undiscounted financial liabilities

2,464,066

2,464,066

Total net undiscounted financial assets

6,552,336

8,919

6,561,255

Trade and other receivables

3,236,792

3,236,792

Cash and cash equivalents

4,743,557

4,743,557

Total undiscounted financial assets

7,980,349

7,980,349

31,263

Financial liabilities Obligation under finance leases

2015 Financial assets

Financial liabilities Obligation under finance leases

6,985

38,248

Trade and other payables

3,926,513

3,926,513

Total undiscounted financial liabilities

3,957,776

6,985

3,964,761

4,022,573

(6,985)

4,015,588

Total net undiscounted financial assets/(liabilities)


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

92

Company Within 2 to 5

More than

Within 1 year

years

5 years

Total

S$

S$

S$

S$

Trade and other receivables

3,326,685

3,326,685

Cash and cash equivalents

4,987,548

4,987,548

Total undiscounted financial assets

8,314,233

8,314,233

6,985

6,985

Trade and other payables

3,278,018

3,278,018

Total undiscounted financial liabilities

3,285,003

3,285,003

Total net undiscounted financial assets

5,029,230

5,029,230

Trade and other receivables

2,953,581

2,953,581

Cash and cash equivalents

3,854,922

3,854,922

Total undiscounted financial assets

6,808,503

6,808,503

2016 Financial assets

Financial liabilities Obligation under finance leases

2015 Financial assets

Financial liabilities Obligation under finance leases

31,263

6,985

38,248

Trade and other payables

4,122,325

4,122,325

Total undiscounted financial liabilities

4,153,588

6,985

4,160,573

2,654,915

(6,985)

2,647,930

Total net undiscounted financial assets/(liabilities) Fair Value of Financial Instruments

As at the end of the financial year, the Group has no financial assets or financial liabilities that are carried at fair value measurements. The carrying amounts of financial assets and financial liabilities of the Group recorded at amortised cost in the financial statements approximate their fair values due to their short term nature.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

27

C A P I TA L M A N A G E M E N T The objectives of the Group and the Company when managing its funds are to safeguard and to maintain adequate working capital to continue as going concern and to develop its principle activities over the longer term. No changes were made in the objectives, policies or processes during the years ended 30 June 2015 and 30 June 2016. General Reserve Policy Policy Statement The primary objective of this policy is to promote transparency on management with regard to its reserves and to assure stakeholders that the Company’s financial reserve is well managed and has, where appropriate, a strategy for building up the reserves. The policy applies to net assets not earmarked for restricted usage. The Group will continue to be guided by prudent financial policies of which gearing is an important aspect. The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as borrowings plus trade and other payables less cash and cash equivalents. Total capital is calculated as equity plus net debt. Group

Company

2016

2015

2016

2015

S$

S$

S$

S$

682,055

Total equity

13,793,800

12,388,270

12,124,013

10,909,792

Total capital

13,793,800

12,388,270

12,124,013

11,591,847

0.06

Net debts

Gearing ratio

The Group and the Company do not have any externally imposed capital requirements for the financial year ended 30 June 2015 and 30 June 2016.


ASSOCIATION

OF

MUSLIM

PROFESSIONALS

|

ANNUAL

REPORT

2016:

FINANCIAL

STATEMENTS

94

General Reserves The Company will build up and maintain a reserve that will be no less than 1 year and not more than 5 years of the annual operating expenditure. The reserves will be reviewed by the Finance and Investment Committee at least annually to see if the current arrangement provides adequate cover to meet the needs of the Company’s operating expenditure during difficult financial times. The preparation of the annual budget should be with the intent of building up the general reserve to the desired level. The general reserve funds may be invested in accordance with the Investment Policy Framework adopted by the Finance and Investment Committee. Surplus assets In accordance with the Memorandum of Association, if on the winding-up or dissolution of the Company, or in the event of the Company ceasing to be a registered charity under the Charities Act there remains, after the satisfaction of all its debts and liabilities any property whatsoever, the same shall not be paid to or distributed among the members of the Company, but shall be given or transferred to some other charitable institution or institutions of a public character in Singapore which are registered under the Charities Act, (Cap. 37). 28

C OM M I T ME N T S During the financial year ended 30 June 2014, Mercu entered into an agreement with Persatuan Pemudi Islam Singapura (“PPIS”), whereby Mercu will manage all of PPIS’s child development centres with effect from 1 October 2013 for a period of 2 years. Under the terms of the agreement, all income and expenses related to the operations of the centres will be borne by Mercu. These include the finance operations, human resource, business and curriculum management.


NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016

PPIS is entitled to a share of the profit as follows: i.

30% of annual net profit before the indirect cost of the child development centres if the annual net profit is below S$380,000.

ii.

50% of annual net profit before the indirect cost of the child development centres if the annual net profit is at or above S$380,000.

PPIS is not liable to bear or share any losses of the child development centres. This agreement ended on 1 October 2015. PPIS’s child development centres revenue, expenses and its corresponding share of profit as at 30 June are as follows:

2016

2015

S$

S$

1,150,383

4,465,438

(1,106,000)

(4,192,013)

35,150

114,840

Revenue (Note 15) Cost of sales (Note 16) Indirect cost (Note 16) Share of profit due to PPIS (Note 16)

79,533

471,659

159,066

859,924

Company

79,533

388,265

PPIS

79,533

471,659

159,066

859,924

Profit Profit apportionment:

Balances with PPIS at the statement of financial position date are set out in Notes 7 and 10.


THIS PAG E I S I N TEN TI O N AL LY L EF T BL AN K.


THIS PAGE IS IN TEN TI O N AL LY L EF T BL AN K.


AMP Annual Report 2016 – Main Booklet  

© Association of Muslim Professionals. Permission is required for reproduction.

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