Powers of the President of Singapore
Encyclopedia
The powers of the President of Singapore are divided into those which the largely ceremonial President
may exercise at his own discretion, and those he must exercise in accordance with the advice of the Cabinet
of Singapore
or of a Minister acting under the general authority of the Cabinet. In addition, the President is required to consult the Council of Presidential Advisers (CPA) when performing some of his functions. In other cases, he may consult the CPA if he wishes to but is not bound to do so.
In 1991 the Constitution of Singapore
was amended to transform the office of President, which was previously indirectly elected
by Parliament
into an office directly elected
by the people. The amendment conferred on the President certain executive functions to block attempts by the government
of the day to draw down past reserves that it did not accumulate. Thus, a guarantee may only be given or a loan raised by the Government if the President concurs, and his approval is also needed for budgets of specified statutory boards and Government companies that draw on their past reserves. The President also possesses personal discretion to withhold assent to any bill in Parliament providing directly or indirectly for the direct or indirect variation, changing or increase in powers of the Central Provident Fund Board to invest moneys belonging to it; and the borrowing of money, the giving of any guarantee or the raising of any loan by the Government if in the President's opinion the bill is likely to draw on reserves not accumulated by the Government during its current term of office. In addition, the President may withhold assent to any Supply Bill, Supplementary Supply Bill or Final Supply Bill for any financial year if in his opinion the estimates of revenue and expenditure, supplementary estimates or statement of excess are likely to lead to a drawing on past reserves.
The President is also empowered to approve changes to key civil service
positions, such as the Chief Justice
, the Attorney-General
, the chairman and members of the Public Service Commission
, the Chief of Defence Force and the Commissioner of Police
. He also appoints as Prime Minister
a Member of Parliament
(MP) who, in his personal judgment, is likely to command the confidence of a majority of MPs. The President has certain powers of oversight over the Corrupt Practices Investigation Bureau
and decisions of the Executive under the Internal Security Act
and the Maintenance of Religious Harmony Act
.
The term of office of the first popularly elected President, Ong Teng Cheong
(1993–1999), was marked by differences between him and the Government concerning the extent of his discretionary fiscal powers. Discussions culminated in the Government issuing a non-binding white paper entitled The Principles for Determining and Safeguarding the Accumulated Reserves of the Government and the Fifth Schedule Statutory Boards and Government Companies (1999). In 2009, the Government requested approval from President S.R. Nathan to draw S$
4.9 billion from past financial reserves in order to meet current budget expenditure, the first time it had done so. The sum was used to fund the Government's Resilience Package consisting of two schemes aimed at preserving jobs and businesses during the financial downturn.
of Singapore
contained no provisions preventing the Government
from squandering the nation's financial reserves and leaving it economically ruined. There were also no safeguards against the Government appointing unsuitable persons to important civil service
positions. The Government concluded that a constitutional safeguard was necessary in order to preserve both the integrity of the public service, as well as Singapore's reserves which should be prevented from falling into the hands of a future irresponsible government.
The Government took the view that the safeguards could be achieved by providing the direct election
of the President, thus making the President directly accountable to the people, and enabling him to serve as a check against the Government by increasing his discretionary powers. By the Constitution of the Republic of Singapore (Amendment) Act 1991, the President was conferred certain executive functions to block attempts by the government of the day to draw down past reserves that it had not accumulated, and to approve changes to key civil service positions. He also had certain powers of oversight over the Corrupt Practices Investigation Bureau
and decisions of the Executive under the Internal Security Act
and the Maintenance of Religious Harmony Act
.
The office of the President is one of Singapore's most heavily altered institutions, and it is still being re-made today. As of 2007, almost one-third of all the constitutional amendments since Singapore became independent in 1965 consisted of changes to the President's office. Approximately half of the amendments implemented were to alter the President's fiscal powers.
or of a Minister acting under the general authority of the Cabinet. In addition, the President is required to consult the Council of Presidential Advisers (CPA) when performing some of his functions. In other cases, he may consult the CPA if he wishes to but is not bound to do so.
The CPA consists of six persons, two appointed at the personal discretion of the President, two on the advice of the Prime Minister, one on the advice of the Chief Justice, and one on the advice of the Chairman of the Public Service Commission
. The President also acts in his discretion to appointment one of the members of the Council as chairman. As at 16 June 2010, the Chairman of the CPA was J.Y. Pillay, Chairman of the Singapore Exchange
, and the other members were Po'ad bin Shaik Abu Bakar Mattar, former Chief Justice
Yong Pung How
, former Government minister S. Dhanabalan, former Supreme Court judge Goh Joon Seng, and Bobby Chin Yoke Choong. The CPA conducts proceedings in private, and its members are required to take an oath of secrecy.
of Parliament or is made under one of eight specified statutes. The President's approval is also needed for budgets of specified statutory boards and Government companies that draw on their past reserves. The statutory boards that come under the President's purview are the Central Provident Fund Board (CPF Board), the Housing and Development Board, JTC Corporation
and the Monetary Authority of Singapore
, while the Government companies are the Government of Singapore Investment Corporation Pte. Ltd.
, MND Holdings Pte. Ltd., and Temasek Holdings Pte. Ltd.
Before the start of its financial year, every statutory board and the board of directors of every Government company must present its budget for that financial year to the President, together with a declaration by the statutory board's chairman and chief executive officer
(CEO), or the Government company's chairman of the board of directors and the CEO, as to whether the budget is likely to draw upon past reserves. If so, the President may exercise personal discretion to disapprove the budget. If he approves the budget even though he is of the opinion that the budget is likely to draw upon past reserves, the decision and opinion must be published in the Government Gazette. Similarly, statutory boards and Government companies are bound to inform the President of financial transactions that are likely to draw on past reserves, and the President has a personal discretion as to whether such transactions should be approved.
In addition, the President possesses personal discretion to withhold his assent to any bill
in Parliament providing directly or indirectly for:
The President may withhold assent to any Supply Bill, Supplementary Supply Bill or Final Supply Bill for any financial year if in his opinion the estimates of revenue and expenditure, supplementary estimates or statement of excess are likely to lead to a drawing on past reserves. However, if his decision to do so is contrary to the CPA's recommendation, the refusal to concur may be overridden by a Parliamentary resolution passed by not less than two-thirds of all the elected Members of Parliament
(MPs).
Initially, the President had the power to disapprove transactions that were likely to draw on reserves, including all transfers of funds from the Government, and from statutory boards and Government companies specified in the Fifth Schedule to the Constitution, to any other entity within or outside that group. In 1994, the Constitution was amended to allow statutory boards and Government companies to transfer their reserves to the Government, provided that the Minister for Finance gave a written undertaking that these sums would be added to past reserves. This effectively excluded such transfers from the President's scrutiny while at the same time adding an additional safeguard in the form of the Minister's undertaking.
The Constitution was further amended in 2002, allowing a transfer or proposed transfer of reserves between statutory boards upon the passing of a resolution by the statutory board to add those reserves to its past reserves. Finally, following amendments in 2004, statutory boards and Government companies are now allowed to transfer their surpluses either to the Government or to each other without the President's scrutiny. A new Article 148I was also added, enabling the Government to transfer its past reserves to any statutory boards and Government companies without the President's consent.
Singapore Technologies (now ST Engineering) was formerly a Government company and the Post Office Savings Bank (POSB, now POSBank
) a statutory board the budgets of which were under the President's scrutiny. They were removed from lists of statutory boards and Government companies in the Fifth Schedule to the Constitution in 1994 and 1998 respectively. The change of status of POSB allowed for its sale to DBS Bank to be effected without the President having to be informed of the matter.
A provision, Article 151A, that was inserted into the Constitution in 1994 removed the President's veto
powers over "any defence and security measure". A defence and security measure is defined as
When proposed in Parliament, the change was met with strong criticism from legislators on the ground that the provision was so wide that made it open to abuse by unscrupulous politicians. Nominated Member of Parliament
(NMP) Walter Woon argued that such a change would make it too easy for a rogue government to circumvent the constitutional safeguards since "national security" was "such a wide thing that it would be possible to fit any sort of handouts within the rubric". The Government's response was that since it was the Prime Minister and Cabinet's job to decide whether Singapore goes to war, they must have the full powers to execute such a decision and Singapore cannot risk a tussle between the Prime Minister and the President.
Before 30 June 2007, the Monetary Authority of Singapore
(MAS) could only purchase and sell securities
authorized by the President and with the recommendation of the Authority's board of directors. Following a 2007 amendment to the Monetary Authority of Singapore Act, the President's approval was no longer required. The reason for the change cited by the Minister for Trade and Industry
Lim Hng Kiang
was that since the range of new securities and assets was getting wider and more complex, this made it "very cumbersome" for the President to have to approve every new recommendation for such purchases.
The President's scope of scrutiny over Singapore's net investment income (NII) derived from both current and past reserves depends on whether such NII is considered "past reserves". The Constitution was amended in 2001 to state that all the NII in a financial year certified by the Government to be derived from its current reserves (that is, reserves accumulated by the Government during its current term of office) returns to current reserves. If no certification is made, at least 50% of the NII of the financial year derived from past reserves has to be classified as past reserves. These changes, however, do not apply to the NII earned by specified statutory boards and Government companies. Their NII is considered as part of normal income and is excluded from the President's scrutiny.
became Singapore's first directly elected President. During his term of office, some differences arose between him and the Government concerning the extent of his discretionary fiscal powers. At a press conference on 16 July 1999, the President announced he would not be seeking re-election, and referred to what he termed a "long list" of problems he had experienced when trying to protect the nation's past reserves. In particular, he mentioned:
The Minister for Finance
Richard Hu Tsu Tau
and the Prime Minister Goh Chok Tong
made ministerial statements in Parliament on 17 August 1999 explaining the Government's views on the points raised.
Access to information
In order to exercise his constitutional functions, the President is entitled to request for information about the Government which is available to the Cabinet, and about the statutory boards and Government companies listed in the Fifth Schedule to the Constitution which is available to the board's members or the company's directors. The President may also ask any Minister, senior officer of a ministry or a government department, CEO and members of the governing board of a statutory board, and directors of any Government company to furnish information concerning the reserves of the Government, a statutory board or a Government company. At a meeting with the Accountant-General in August 1996, the President, having been given a list of the Government's physical assets, had commented that the monetary value of the assets should have been stated. The Accountant-General had then stated it
would take 56 (not 52) man-years to value the properties.
The Minister for Finance explained that his Ministry had asked the Attorney-General to advise it as to whether such a valuation was necessary. The Attorney-General's Chambers subsequently stated that the Constitution did not require Government property to be revalued, as the issue of whether past reserves were being drawn upon did not arise unless ownership of a piece of property was about to be transferred. In addition, a revaluation would lead to unnecessary expense since much state land would remain as such, and the value of each piece of land depended on planning and zoning restrictions which the Government could change.
Withholding of approval for CPF Board's budget
In December 1996, the CPA informed the President that for 1997 the CPF Board had budgeted for capital expenditure
of S$
27 million, which exceeded its operating surplus
of $23 million. Although the intention was for the excess of $4 million to be funded out of the Board's accumulated surpluses, because a general election was due in 1997 the Board's accumulated surpluses would become past reserves and require the President's approval to be drawn upon. The Government explained that the CPF Board's accounts were prepared on an accrual basis
. Thus, capital expenditure was depreciated
over the useful life of each asset
and not indicated as a lump sum
in the year of expenditure. The Board's operating surplus of $23 million had been computed on the basis of annual depreciation of $11 million being charged against the year's income. Hence, no drawdown on past reserves was required. The President expressed concern that accrual accounting would "allow a profligate Government to hide its lavish spending under the guise of capital expenditures". The Government disagreed, taking the view that accrual accounting was well established.
Definition of net investment income
The President informed Government that he had been told that net investment income (NII) should be classified as current reserves, though he was not certain as he was not an accountant. The Government, having taken the Attorney-General's advice on the matter, said that NII was correctly treated as current income, as it is the interest
and dividend
income
earned from investing the Government's reserves, less expenses on investment and debt servicing. It does not include capital gain
s or losses
from the disposal of investments, which are regarded as investment adjustments. Since the Constitution provides that the President has only custodial powers over past reserves, these powers do not extend to NII as they are accumulated during the current term of office of the Government, even when the NII stems from the investment of past reserves that are themselves "locked up". Nonetheless, the Government would take into consideration a suggestion from the President and the CPA to lock away half of the NII derived from past reserves as past reserves. In 2001, as indicated above, the Government amended the Constitution to redefine how NII should be treated.
Government's change in treatment of NII
Finally, the Government disagreed with the President that it had changed the way it treated NII. Furthermore, it had not been necessary to ask him to sanction the use of past reserves for its financial packages and the budget deficit as it had enough budget surpluses built up within its current term of office.
Following discussions between the President and the Government, in 1999 the Government issued a non-binding white paper entitled The Principles for Determining and Safeguarding the Accumulated Reserves of the Government and the Fifth Schedule Statutory Boards and Government Companies. Speaking in Parliament on 17 August 1999, the Prime Minister said:
Six months after his term of office ended, Ong gave an interview to Asiaweek
magazine, during which he reiterated that he had only been given an incomplete list of the Government's immovable assets
halfway through his term. In addition, he claimed not to have been informed about "some ministerial procedures" as he had learned of the sale of the assets of the Post Office Savings Bank, a statutory board the reserves of which he was supposed to protect, to DBS Bank from the newspapers instead of being informed first. He mentioned: "[the Prime Minister] said that my statements, and his rebuttal in parliament, were probably a good thing. They showed the transparency of the system. I stand by what I said."
As a result of changes to the Constitution effected in 1996, Parliament may overrule the President's decision with a resolution passed by not less than two-thirds of all elected MPs if he refuses to make or revoke an appointment contrary to the CPA's recommendation. The President exercises similar powers as regards the appointment or revocation of appointment of the chairman, members or CEO of specified statutory boards and the directors or CEOs of Government companies, and his decisions in this respect may be overruled by Parliament in the same manner as decisions relating to the key office holders referred to above. This constitutional amendment reduced the power of the President to veto executive appointments.
The President appoints as Prime Minister an MP who, in his personal judgment, is likely to command the confidence of a majority of MPs.
A restraining order can prevent a person from addressing orally or in writing any congregation, parish or group of worshippers or members of any religious group or institution on any subject, restrain him or her from assisting or contributing to any publication produced by any religious group, or prevent him from holding office in an editorial board or a committee of a publication of any religious group without the Minister's prior permission.
The Minister may also make a restraining order against a person other than those mentioned above who has committed or is attempting to commit an act causing feelings of enmity, hatred, ill-will or hostility between different religious groups; or who is inciting, instigating or encouraging a religious group or institution, or a leader or member of such a group or institution to do so. Such an order may restrain the person from addressing or advising any religious group or institution or any of its members, or making any statement or causing any statement to be made concerning or affecting relations between that religious group or institution and the Government or any other religious group or institution.
Once a restraining order is made, it must be referred to the Presidential Council for Religious Harmony, which must recommend to the President whether the order should be confirmed, cancelled or varied in some way. The President is required to consider the Council's recommendations and to decide whether the order should be cancelled or confirmed, and if confirmed whether any variations are necessary. He is required to act in accordance with Cabinet's advice on the matter, unless this conflicts with the Council's recommendation, in which case he may exercise personal discretion.
, among other things, authorizes the Minister for Home Affairs to make an order directing that a person be detained for up to two years at a time if the President is satisfied that the detention is necessary to prevent the person from acting in a manner prejudicial to the security of Singapore or the maintenance of public order or essential services. A detained person is entitled to make representations to an advisory board made up of a chairman appointed by the President who is or has been, or is qualified to be, a Supreme Court Judge, and two other members appointed by the President after consulting with the Chief Justice. An advisory board must consider the representations and make recommendations to the President within three months from the date of detention. If an advisory board recommends that a detainee be released, and the government authority on whose advice or order the person was detained disagrees with the board's recommendation, the President has a personal discretion as to whether the person should continue to be detained. The President's power in this area is restricted by the requirement that the board must recommend the detainee's release; if further detention is recommended, the President has no power to direct otherwise.
may seek the President's assent to inquire or carry out investigations regarding information received about the conduct of any person, or any allegation or complaint made against any person. If the President exercises his discretion in concurring with the Director, he or she is permitted to proceed with the investigations, notwithstanding the Prime Minister's refusal to consent. This is one of the few instances where the President's power is not limited by some other body.
offenders, or accomplices who provide information leading to the conviction of principal offenders in crimes. He may also grant offenders a reprieve or respite from the execution of any sentence; and wholly or partially remit an imposed sentence, penalty or forfeiture. In the case of death sentences, the President must call for reports made to him by the judge who tried the case and the Chief Justice or other presiding judge of the appellate court which heard the appeal in the matter to be forwarded to the Attorney-General. The reports, along with the Attorney-General's opinion on the case, are then forwarded to Cabinet which then advises the President as to whether to exercise his powers.
Article 5(2A) of the Constitution allows the President to direct that any bill seeking to amend certain important clauses of the Constitution shall not be passed by Parliament unless it has been supported at a national referendum
by not less than two-thirds of the total number of votes cast by the electors. The clauses are:
This provision, however, was not immediately brought into force when enacted, as the Government stated at the time that a grace period of at least four years was needed for modifications and refinements to the Elected President scheme to resolve unforeseen problems that arose upon implementation. Article 5(2A) has still not been brought into force. On 21 October 2008, in response to a question by NMP Thio Li-ann
, the Prime Minister Lee Hsien Loong
said:
The original Article 22H of the Constitution provided the President with personal discretion to withhold assent to any bill (other than a bill to which Article 5(2A) applies) which provided directly or indirectly for the circumvention or curtailment of the discretionary powers conferred upon the President by the Constitution. At that time, Article 5(2A) provided that the President could prevent Parliament from passing a bill seeking to amend certain specified clauses of the Constitution, including those dealing with the President's powers, unless it had been supported by not less than two-thirds of the votes cast at a national referendum. However, as Article 5(2A) was not yet in force, a question arose as to whether the Government was entitled to amend the Constitution in a way that circumvented or curtailed the President's discretionary powers, or whether Article 22H prohibited this entirely.
To resolve the issue, Article 100 was inserted into the Constitution to enable the President to refer to the Constitution of the Republic of Singapore Tribunal
any question as to the effect of any constitutional provision. President Ong Teng Cheong then referred to the Tribunal, which consisted of three Supreme Court judges, the issue of whether he had the power under Article 22H(1) to withhold assent to any bill seeking to amend any of the provisions referred to in Article 5(2A), and specifically to any bill seeking to amend Article 22H to restrict the application of the President's powers under that Article to non-constitutional bills. In a judgment delivered on 20 April 1995, the Tribunal held that even though Article 5(2A) was not in force, the Government's intent in including it as part of the Constitution had to be considered. Looking at it in this way, it was clear that Article 5(2A) was intended to deal with bills seeking to amend the Constitution, while Article 22H covered only ordinary bills. Therefore, the President had no power under Article 22H to withhold his assent to any bill seeking to amend the Constitution, and in particular any of the provisions referred to Article 5(2A).
In 1996, Article 5A was inserted into the Constitution and Article 22H were amended to clarify the situation by providing different procedures for circumventing or curtailing the President's discretionary power, depending on whether the Government seeks to do so by way of an ordinary bill or a bill seeking to amend the Constitution. Article 22H deals with attempts to alter the President's powers by introducing an ordinary bill. If this occurs, the President may exercise personal discretion to withhold assent to the bill. The Cabinet may, if it wishes, advise the President to refer to the Constitution Tribunal the question whether the bill in fact has the effect of circumventing or curtailing his discretionary powers. If the Tribunal determines that the bill does not have that effect, the President is deemed to have assented to the bill on the day following the day when the Tribunal's opinion is pronounced in open court
.
On the other hand, Article 5A deals with attempts to alter the President's power by amending the Constitution itself. When the provision is brought into force, the President will also be able to decline to assent to a bill seeking to amend the Constitution that has a direct or indirect effect of circumventing or curtailing his discretionary powers. In this case, the Cabinet may also advise the President to refer to the Tribunal the question of whether the bill indeed has this effect. If the Tribunal rules that the bill does not have this effect, the President is deemed to have assented to the bill on the day immediately following the day when the Tribunal pronounces its opinion in open court. On the other hand, if the Tribunal decides to the contrary and the Government wishes to push the amendment through in the face of the President's opposition to it, the Prime Minister may opt to submit the bill to the electorate. If the bill is supported at a national referendum by not less than two-thirds of the total number of votes cast, the President is deemed to have assented to the bill on the day immediately following the day when the results of the referendum have been published in the Government Gazette.
President of Singapore
The President of the Republic of Singapore is Singapore's head of state. In a Westminster parliamentary system, as which Singapore governs itself, the prime minister is the head of the government while the position of president is largely ceremonial. Before 1993, the President of Singapore was...
may exercise at his own discretion, and those he must exercise in accordance with the advice of the Cabinet
Cabinet of Singapore
The Cabinet of Singapore forms the Government of Singapore together with the President of Singapore. It is led by the Prime Minister of Singapore who is the head of government...
of Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
or of a Minister acting under the general authority of the Cabinet. In addition, the President is required to consult the Council of Presidential Advisers (CPA) when performing some of his functions. In other cases, he may consult the CPA if he wishes to but is not bound to do so.
In 1991 the Constitution of Singapore
Constitution of Singapore
The Constitution of Singapore is the supreme law of Singapore and it is a codified constitution.The constitution cannot be amended without the support of more than two-thirds of the members of parliament on the second and third readings . The president may seek opinion on constitutional issues...
was amended to transform the office of President, which was previously indirectly elected
Indirect election
Indirect election is a process in which voters in an election don't actually choose between candidates for an office but rather elect persons who will then make the choice. It is one of the oldest form of elections and is still used today for many upper houses and presidents...
by Parliament
Parliament of Singapore
The Parliament of the Republic of Singapore and the President jointly make up the legislature of Singapore. Parliament is unicameral and is made up of Members of Parliament who are elected, as well as Non-constituency Members of Parliament and Nominated Members of Parliament who are appointed...
into an office directly elected
Direct election
Direct election is a term describing a system of choosing political officeholders in which the voters directly cast ballots for the person, persons or political party that they desire to see elected. The method by which the winner or winners of a direct election are chosen depends upon the...
by the people. The amendment conferred on the President certain executive functions to block attempts by the government
Government of Singapore
The Government of Singapore is defined by the Constitution of the Republic of Singapore to mean the Executive branch of government, which is made up of the President and the Cabinet of Singapore. Although the President acts in his personal discretion in the exercise of certain functions as a check...
of the day to draw down past reserves that it did not accumulate. Thus, a guarantee may only be given or a loan raised by the Government if the President concurs, and his approval is also needed for budgets of specified statutory boards and Government companies that draw on their past reserves. The President also possesses personal discretion to withhold assent to any bill in Parliament providing directly or indirectly for the direct or indirect variation, changing or increase in powers of the Central Provident Fund Board to invest moneys belonging to it; and the borrowing of money, the giving of any guarantee or the raising of any loan by the Government if in the President's opinion the bill is likely to draw on reserves not accumulated by the Government during its current term of office. In addition, the President may withhold assent to any Supply Bill, Supplementary Supply Bill or Final Supply Bill for any financial year if in his opinion the estimates of revenue and expenditure, supplementary estimates or statement of excess are likely to lead to a drawing on past reserves.
The President is also empowered to approve changes to key civil service
Singapore Civil Service
The Singapore Civil Service is the set of civil servants working for the Government of Singapore. Many of its principles were inherited from the administrative system left by the British Civil Service, as Singapore was once a British colony....
positions, such as the Chief Justice
Chief Justice of Singapore
The Chief Justice of Singapore is the highest post in the judicial system of Singapore. The Chief Justice is appointed by the President, chosen from candidates recommended by the Prime Minister. The present Chief Justice is Chan Sek Keong....
, the Attorney-General
Attorney-General of Singapore
The Attorney-General of Singapore is the legal adviser to the government of the Republic of Singapore and its public prosecutor.The office was founded in 1867 as the chief legal officer of the British crown colony of the Straits Settlements. The current requirements for appointment as...
, the chairman and members of the Public Service Commission
Public Service Commission (Singapore)
The Public Service Commission , Singapore , is constituted under Part IX of the Constitution of Singapore and its constitutional role is to appoint, confirm, promote, transfer, dismiss and exercise disciplinary control over public officers in Singapore.The PSC also retains two key...
, the Chief of Defence Force and the Commissioner of Police
Commissioner of Police (Singapore)
The Commissioner of Police is the top-ranking police officer of the Singapore Police Force. Assisted by the Deputy Commissioner of Police, he reports to the Minister for Home Affairs....
. He also appoints as Prime Minister
Prime Minister of Singapore
The Prime Minister of the Republic of Singapore is the head of the government of the Republic of Singapore. The President of Singapore appoints as Prime Minister a Member of Parliament who, in his opinion, is most likely to command the confidence of a majority of MPs.The office of Prime Minister...
a Member of Parliament
Members of the Singapore Parliament
The following is a historical list of members for the current and past ten Parliaments of Singapore:-See also:*1st Parliament of Singapore*2nd Parliament of Singapore*3rd Parliament of Singapore*4th Parliament of Singapore*5th Parliament of Singapore...
(MP) who, in his personal judgment, is likely to command the confidence of a majority of MPs. The President has certain powers of oversight over the Corrupt Practices Investigation Bureau
Corrupt Practices Investigation Bureau
Corrupt Practices Investigation Bureau is a government agency in Singapore which investigates and prosecutes corruption in the public and private sectors...
and decisions of the Executive under the Internal Security Act
Internal Security Act (Singapore)
The Internal Security Act of Singapore is a law that allows the Singapore government to investigate security threats like international terrorism, foreign subversion, espionage and acts of violence or hatred using race or religion...
and the Maintenance of Religious Harmony Act
Maintenance of Religious Harmony Act
The Maintenance of Religious Harmony Act is a Singapore statute which, according to its long title, provides for the maintenance of religious harmony, for the establishment of a Presidential Council for Religious Harmony , and for matters connected therewith...
.
The term of office of the first popularly elected President, Ong Teng Cheong
Ong Teng Cheong
Ong Teng Cheong was the first directly elected President of the Republic of Singapore. He was the nation's fifth President, and served a six-year term from 1 September 1993 to 31 August 1999.-Early life:...
(1993–1999), was marked by differences between him and the Government concerning the extent of his discretionary fiscal powers. Discussions culminated in the Government issuing a non-binding white paper entitled The Principles for Determining and Safeguarding the Accumulated Reserves of the Government and the Fifth Schedule Statutory Boards and Government Companies (1999). In 2009, the Government requested approval from President S.R. Nathan to draw S$
Singapore dollar
The Singapore dollar or Dollar is the official currency of Singapore. It is normally abbreviated with the dollar sign $, or alternatively S$ to distinguish it from other dollar-denominated currencies...
4.9 billion from past financial reserves in order to meet current budget expenditure, the first time it had done so. The sum was used to fund the Government's Resilience Package consisting of two schemes aimed at preserving jobs and businesses during the financial downturn.
Grant of powers to the President
Before 1991, the ConstitutionConstitution of Singapore
The Constitution of Singapore is the supreme law of Singapore and it is a codified constitution.The constitution cannot be amended without the support of more than two-thirds of the members of parliament on the second and third readings . The president may seek opinion on constitutional issues...
of Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
contained no provisions preventing the Government
Government of Singapore
The Government of Singapore is defined by the Constitution of the Republic of Singapore to mean the Executive branch of government, which is made up of the President and the Cabinet of Singapore. Although the President acts in his personal discretion in the exercise of certain functions as a check...
from squandering the nation's financial reserves and leaving it economically ruined. There were also no safeguards against the Government appointing unsuitable persons to important civil service
Singapore Civil Service
The Singapore Civil Service is the set of civil servants working for the Government of Singapore. Many of its principles were inherited from the administrative system left by the British Civil Service, as Singapore was once a British colony....
positions. The Government concluded that a constitutional safeguard was necessary in order to preserve both the integrity of the public service, as well as Singapore's reserves which should be prevented from falling into the hands of a future irresponsible government.
The Government took the view that the safeguards could be achieved by providing the direct election
Direct election
Direct election is a term describing a system of choosing political officeholders in which the voters directly cast ballots for the person, persons or political party that they desire to see elected. The method by which the winner or winners of a direct election are chosen depends upon the...
of the President, thus making the President directly accountable to the people, and enabling him to serve as a check against the Government by increasing his discretionary powers. By the Constitution of the Republic of Singapore (Amendment) Act 1991, the President was conferred certain executive functions to block attempts by the government of the day to draw down past reserves that it had not accumulated, and to approve changes to key civil service positions. He also had certain powers of oversight over the Corrupt Practices Investigation Bureau
Corrupt Practices Investigation Bureau
Corrupt Practices Investigation Bureau is a government agency in Singapore which investigates and prosecutes corruption in the public and private sectors...
and decisions of the Executive under the Internal Security Act
Internal Security Act (Singapore)
The Internal Security Act of Singapore is a law that allows the Singapore government to investigate security threats like international terrorism, foreign subversion, espionage and acts of violence or hatred using race or religion...
and the Maintenance of Religious Harmony Act
Maintenance of Religious Harmony Act
The Maintenance of Religious Harmony Act is a Singapore statute which, according to its long title, provides for the maintenance of religious harmony, for the establishment of a Presidential Council for Religious Harmony , and for matters connected therewith...
.
The office of the President is one of Singapore's most heavily altered institutions, and it is still being re-made today. As of 2007, almost one-third of all the constitutional amendments since Singapore became independent in 1965 consisted of changes to the President's office. Approximately half of the amendments implemented were to alter the President's fiscal powers.
Powers
The powers of the President are divided into those he may exercise in his own discretion, and those he must exercise in accordance with the advice of the CabinetCabinet of Singapore
The Cabinet of Singapore forms the Government of Singapore together with the President of Singapore. It is led by the Prime Minister of Singapore who is the head of government...
or of a Minister acting under the general authority of the Cabinet. In addition, the President is required to consult the Council of Presidential Advisers (CPA) when performing some of his functions. In other cases, he may consult the CPA if he wishes to but is not bound to do so.
The CPA consists of six persons, two appointed at the personal discretion of the President, two on the advice of the Prime Minister, one on the advice of the Chief Justice, and one on the advice of the Chairman of the Public Service Commission
Public Service Commission (Singapore)
The Public Service Commission , Singapore , is constituted under Part IX of the Constitution of Singapore and its constitutional role is to appoint, confirm, promote, transfer, dismiss and exercise disciplinary control over public officers in Singapore.The PSC also retains two key...
. The President also acts in his discretion to appointment one of the members of the Council as chairman. As at 16 June 2010, the Chairman of the CPA was J.Y. Pillay, Chairman of the Singapore Exchange
Singapore Exchange
Singapore Exchange Limited is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges FederationSingapore Exchange...
, and the other members were Po'ad bin Shaik Abu Bakar Mattar, former Chief Justice
Chief Justice of Singapore
The Chief Justice of Singapore is the highest post in the judicial system of Singapore. The Chief Justice is appointed by the President, chosen from candidates recommended by the Prime Minister. The present Chief Justice is Chan Sek Keong....
Yong Pung How
Yong Pung How
Yong Pung How, DUT . He was the former Chief Justice of Singapore, serving from 1990 to 2006. Prior to his judicial career, he was a lawyer, banker and senior government official...
, former Government minister S. Dhanabalan, former Supreme Court judge Goh Joon Seng, and Bobby Chin Yoke Choong. The CPA conducts proceedings in private, and its members are required to take an oath of secrecy.
| Presidential power | Provisions of Constitution | Whether personal discretion | Whether CPA must be consulted |
|---|---|---|---|
| Financial powers | |||
| Withholding of assent to bill varying, changing or increasing powers of Central Provident Fund Board to invest moneys belonging to it | Arts. 21(2)(c), 22E | Yes | Yes |
| Withholding of concurrence to guarantee or loan given or raised by Government; and withholding of assent to bill for borrowing of money, giving of guarantee or raising of loan by the Government if likely to draw on reserves not accumulated by Government during current term of office | Arts. 21(2)(c) and (d), 144 (1) and (2) | Yes | Yes |
| Withholding of assent to Supply Bill, Supplementary Supply Bill or Final Supply Bill for any financial year if estimates of revenue and expenditure, supplementary estimates or statement of excess likely to lead to drawing on reserves not accumulated by Government during current term of office | Arts. 21(2)(c), 148A | Yes | Yes |
| Withholding of concurrence and approval to appointments and budgets of statutory boards and Government companies specified in Fifth Schedule to Constitution | Arts. 21(2)(e), 22A, 22C | Yes | Yes |
| Disapproval of proposed transactions of specified statutory boards and Government companies, or Government itself, likely to draw on reserves accumulated by board, company or Government before Government's current term of office | Arts. 21(2)(f), 22B(7), 22D(6), 148G | Yes | Yes |
| Concurring with advice of Minister for Finance Ministry of Finance (Singapore) The Ministry of Finance , is a ministry of the Government of Singapore responsible for administering and regulating financial institutions and structures of the economy of Singapore. It is headed by the Minister for Finance... on long-term real rates of return Rate of return In finance, rate of return , also known as return on investment , rate of profit or sometimes just return, is the ratio of money gained or lost on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or... expected to be earned on assets so equivalent amount may be excluded from reserves not accumulated by Government during current term of office |
Art. 142(1A) | Yes | Yes |
| Concurring with Parliament to authorize expenditure by resolution approving estimates containing a vote on account before passing of a Supply law for a particular year, or by resolution approving a vote of credit because of magnitude or indefinite character of any service or in circumstances of unusual urgency | Art. 148B | Yes | Yes |
| Powers relating to key office holders | |||
| Appointing the Prime Minister Prime Minister of Singapore The Prime Minister of the Republic of Singapore is the head of the government of the Republic of Singapore. The President of Singapore appoints as Prime Minister a Member of Parliament who, in his opinion, is most likely to command the confidence of a majority of MPs.The office of Prime Minister... |
Arts. 21(2)(a), 25 | Yes | No |
| Refusing to make or revoke an appointment to specified key offices (for instance, the Chief Justice Chief Justice of Singapore The Chief Justice of Singapore is the highest post in the judicial system of Singapore. The Chief Justice is appointed by the President, chosen from candidates recommended by the Prime Minister. The present Chief Justice is Chan Sek Keong.... , the Attorney-General Attorney-General of Singapore The Attorney-General of Singapore is the legal adviser to the government of the Republic of Singapore and its public prosecutor.The office was founded in 1867 as the chief legal officer of the British crown colony of the Straits Settlements. The current requirements for appointment as... , the chairman and members of the Public Service Commission Public Service Commission (Singapore) The Public Service Commission , Singapore , is constituted under Part IX of the Constitution of Singapore and its constitutional role is to appoint, confirm, promote, transfer, dismiss and exercise disciplinary control over public officers in Singapore.The PSC also retains two key... , the Chief of Defence Force and the Commissioner of Police Commissioner of Police (Singapore) The Commissioner of Police is the top-ranking police officer of the Singapore Police Force. Assisted by the Deputy Commissioner of Police, he reports to the Minister for Home Affairs.... ) if the President does not concur with the advice or recommendation of a relevant authority that he is required to consult |
Arts. 21(2)(i), 22 | Yes | Yes |
| Appointing chairman and members of advisory board constituted to determine if person should continue to be preventively detained without trial for security reasons | Art. 151(2) | No | No, but must consult Chief Justice before appointing members other than chairman |
| Other powers | |||
| Withholding of consent to a request for dissolution of Parliament Dissolution of parliament In parliamentary systems, a dissolution of parliament is the dispersal of a legislature at the call of an election.Usually there is a maximum length of a legislature, and a dissolution must happen before the maximum time... |
Arts. 21(2)(b), 65(3) | Yes | No |
| Withholding of assent to bill seeking to circumvent or curtail President's discretionary powers, whether this proposes to amend the Constitution or relates to ordinary legislation | Arts. 5A (not yet in force), 21(2)(c), 22H | Yes | No |
| Withholding of concurrence in relation to the detention of person under law passed against subversion Subversion Apache Subversion is a software versioning and a revision control system distributed under a free license. Developers use Subversion to maintain current and historical versions of files such as source code, web pages, and documentation... |
Arts. 21(2)(g), 151(4); Internal Security Act, s. 13A | Yes | No, but must consider recommendations of advisory board considering detainee's representations against detention |
| Cancelling or confirming restriction order under Maintenance of Religious Harmony Act, if Cabinet's advice contrary to recommendation of Presidential Council for Religious Harmony | Arts. 21(2)(h), 22I; Maintenance of Religious Harmony Act, s. 12. | Yes | No, but must consider recommendations of Presidential Council for Religious Harmony |
| Directing that any bill seeking to amend specified clauses of the Constitution shall not be passed by Parliament unless supported at national referendum by not less than two-thirds of total number of votes cast by electors | Arts. 5(2A) (not yet in force), 21(2)(i) | Yes | No |
| Concurring with Director of the Corrupt Practices Investigation Bureau Corrupt Practices Investigation Bureau Corrupt Practices Investigation Bureau is a government agency in Singapore which investigates and prosecutes corruption in the public and private sectors... for investigation to take place even if Prime Minister refuses consent for Director to investigate |
Arts. 21(2)(i), 22G | Yes | No |
| Appointing two members of CPA, and a member of the Council as chairman | Arts. 21(2)(i), 37B(1)(a) and (2) | Yes | No |
| Granting of pardon Pardon Clemency means the forgiveness of a crime or the cancellation of the penalty associated with it. It is a general concept that encompasses several related procedures: pardoning, commutation, remission and reprieves... s and reprieves for offences or execution of sentences, and remissions of sentences |
Art. 22P | No | No |
| Referring question as to effect of provision of Constitution to tribunal of Supreme Court judges for opinion | Art. 100 | No | No |
| Issuing Proclamations of Emergency State of emergency A state of emergency is a governmental declaration that may suspend some normal functions of the executive, legislative and judicial powers, alert citizens to change their normal behaviours, or order government agencies to implement emergency preparedness plans. It can also be used as a rationale... and promulgating emergency ordinances |
Art. 150 | No | No |
Financial powers
As the fiscal guardian for the nation's past reserves (that is, reserves not accumulated by the Government during its current term of office), the President's concurrence is required for a number of financial transactions that the Government may wish to enter into. A guarantee may only be given or a loan raised by the Government if the President concurs, whether the transaction is authorized by a resolutionResolution (law)
A resolution is a written motion adopted by a deliberative body. The substance of the resolution can be anything that can normally be proposed as a motion. For long or important motions, though, it is often better to have them written out so that discussion is easier or so that it can be...
of Parliament or is made under one of eight specified statutes. The President's approval is also needed for budgets of specified statutory boards and Government companies that draw on their past reserves. The statutory boards that come under the President's purview are the Central Provident Fund Board (CPF Board), the Housing and Development Board, JTC Corporation
JTC Corporation
JTC Corporation , formerly the Jurong Town Corporation, is Singapore's principal developer and manager of industrial estates and their related facilities.-History:JTC was established on 1 June 1968 to develop industrial estates...
and the Monetary Authority of Singapore
Monetary Authority of Singapore
The Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority...
, while the Government companies are the Government of Singapore Investment Corporation Pte. Ltd.
Government of Singapore Investment Corporation
The Government of Singapore Investment Corporation Private Limited is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore's foreign reserves...
, MND Holdings Pte. Ltd., and Temasek Holdings Pte. Ltd.
Temasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
Before the start of its financial year, every statutory board and the board of directors of every Government company must present its budget for that financial year to the President, together with a declaration by the statutory board's chairman and chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
(CEO), or the Government company's chairman of the board of directors and the CEO, as to whether the budget is likely to draw upon past reserves. If so, the President may exercise personal discretion to disapprove the budget. If he approves the budget even though he is of the opinion that the budget is likely to draw upon past reserves, the decision and opinion must be published in the Government Gazette. Similarly, statutory boards and Government companies are bound to inform the President of financial transactions that are likely to draw on past reserves, and the President has a personal discretion as to whether such transactions should be approved.
In addition, the President possesses personal discretion to withhold his assent to any bill
Bill (proposed law)
A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....
in Parliament providing directly or indirectly for:
- the direct or indirect variation, changing or increase in powers of the CPF Board to invest moneys belonging to it; and
- the borrowing of money, the giving of any guarantee or the raising of any loan by the Government if in the President's opinion the bill is likely to draw on reserves not accumulated by the Government during its current term of office;
The President may withhold assent to any Supply Bill, Supplementary Supply Bill or Final Supply Bill for any financial year if in his opinion the estimates of revenue and expenditure, supplementary estimates or statement of excess are likely to lead to a drawing on past reserves. However, if his decision to do so is contrary to the CPA's recommendation, the refusal to concur may be overridden by a Parliamentary resolution passed by not less than two-thirds of all the elected Members of Parliament
Members of the Singapore Parliament
The following is a historical list of members for the current and past ten Parliaments of Singapore:-See also:*1st Parliament of Singapore*2nd Parliament of Singapore*3rd Parliament of Singapore*4th Parliament of Singapore*5th Parliament of Singapore...
(MPs).
Transfer of surpluses from statutory boards and Government companies
Initially, the President had the power to disapprove transactions that were likely to draw on reserves, including all transfers of funds from the Government, and from statutory boards and Government companies specified in the Fifth Schedule to the Constitution, to any other entity within or outside that group. In 1994, the Constitution was amended to allow statutory boards and Government companies to transfer their reserves to the Government, provided that the Minister for Finance gave a written undertaking that these sums would be added to past reserves. This effectively excluded such transfers from the President's scrutiny while at the same time adding an additional safeguard in the form of the Minister's undertaking.
The Constitution was further amended in 2002, allowing a transfer or proposed transfer of reserves between statutory boards upon the passing of a resolution by the statutory board to add those reserves to its past reserves. Finally, following amendments in 2004, statutory boards and Government companies are now allowed to transfer their surpluses either to the Government or to each other without the President's scrutiny. A new Article 148I was also added, enabling the Government to transfer its past reserves to any statutory boards and Government companies without the President's consent.
Removal of Singapore Technologies and POSB from Constitution
Singapore Technologies (now ST Engineering) was formerly a Government company and the Post Office Savings Bank (POSB, now POSBank
POSBank
POSBank is a brand of consumer banking services offered by DBS Bank in Singapore, after it was acquired by the latter in November 1998. Prior to this, it was a major public bank which began life as the Post Office Savings Bank, offering low-cost banking services to Singaporeans...
) a statutory board the budgets of which were under the President's scrutiny. They were removed from lists of statutory boards and Government companies in the Fifth Schedule to the Constitution in 1994 and 1998 respectively. The change of status of POSB allowed for its sale to DBS Bank to be effected without the President having to be informed of the matter.
Removal of veto powers over defence and security measures
A provision, Article 151A, that was inserted into the Constitution in 1994 removed the President's veto
Veto
A veto, Latin for "I forbid", is the power of an officer of the state to unilaterally stop an official action, especially enactment of a piece of legislation...
powers over "any defence and security measure". A defence and security measure is defined as
When proposed in Parliament, the change was met with strong criticism from legislators on the ground that the provision was so wide that made it open to abuse by unscrupulous politicians. Nominated Member of Parliament
Nominated Member of Parliament
A Nominated Member of Parliament is a Member of the Parliament of Singapore who is appointed instead of being elected into office by the people, and who does not belong to any political party or represent any constituency. There are currently nine NMPs in Parliament...
(NMP) Walter Woon argued that such a change would make it too easy for a rogue government to circumvent the constitutional safeguards since "national security" was "such a wide thing that it would be possible to fit any sort of handouts within the rubric". The Government's response was that since it was the Prime Minister and Cabinet's job to decide whether Singapore goes to war, they must have the full powers to execute such a decision and Singapore cannot risk a tussle between the Prime Minister and the President.
Changes to the Monetary Authority of Singapore Act
Before 30 June 2007, the Monetary Authority of Singapore
Monetary Authority of Singapore
The Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority...
(MAS) could only purchase and sell securities
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
authorized by the President and with the recommendation of the Authority's board of directors. Following a 2007 amendment to the Monetary Authority of Singapore Act, the President's approval was no longer required. The reason for the change cited by the Minister for Trade and Industry
Ministry of Trade and Industry (Singapore)
The Ministry Of Trade and Industry is a ministry of the Government of Singapore that directs the formulation of policies related to the development of trade and industry in Singapore.-Mission:...
Lim Hng Kiang
Lim Hng Kiang
Lim Hng Kiang is a politician from Singapore. A member of the governing People's Action Party , he is currently the country's Minister for Trade and Industry. He previoulsy served as the Minister for National Development , Minister for Health , and as a Minister in the Prime Minister's Office...
was that since the range of new securities and assets was getting wider and more complex, this made it "very cumbersome" for the President to have to approve every new recommendation for such purchases.
Changes in the definition of net investment income
The President's scope of scrutiny over Singapore's net investment income (NII) derived from both current and past reserves depends on whether such NII is considered "past reserves". The Constitution was amended in 2001 to state that all the NII in a financial year certified by the Government to be derived from its current reserves (that is, reserves accumulated by the Government during its current term of office) returns to current reserves. If no certification is made, at least 50% of the NII of the financial year derived from past reserves has to be classified as past reserves. These changes, however, do not apply to the NII earned by specified statutory boards and Government companies. Their NII is considered as part of normal income and is excluded from the President's scrutiny.
Differences between Government and first directly elected President
On 2 September 1993, Ong Teng CheongOng Teng Cheong
Ong Teng Cheong was the first directly elected President of the Republic of Singapore. He was the nation's fifth President, and served a six-year term from 1 September 1993 to 31 August 1999.-Early life:...
became Singapore's first directly elected President. During his term of office, some differences arose between him and the Government concerning the extent of his discretionary fiscal powers. At a press conference on 16 July 1999, the President announced he would not be seeking re-election, and referred to what he termed a "long list" of problems he had experienced when trying to protect the nation's past reserves. In particular, he mentioned:
- that the Accountant-General had informed him it would take 52 man-years to provide him with a list of the Government's physical assets;
- an "unpleasant" encounter in which he had felt compelled to withhold approval of the budget of the Central Provident Fund Board (CPF Board) as it would have drawn on its past reserves;
- a disagreement regarding whether net investment income (NII) should be treated as current or past reserves; and
- his "disappointment" that the Government had changed its treatment of NII so as not to require him to approve the use of past reserves to finance its package of cost-cutting measures aimed at combating the effects of the 1997 Asian Financial Crisis.
The Minister for Finance
Ministry of Finance (Singapore)
The Ministry of Finance , is a ministry of the Government of Singapore responsible for administering and regulating financial institutions and structures of the economy of Singapore. It is headed by the Minister for Finance...
Richard Hu Tsu Tau
Hu Tsu Tau Richard
Richard Hu Tsu Tau is a former Singaporean politician. He served as Minister of Finance from 1985–2001 and is affiliated to the People's Action Party...
and the Prime Minister Goh Chok Tong
Goh Chok Tong
Goh Chok Tong is the Senior Minister of Singapore and the chairman of the central bank of Singapore, the Monetary Authority of Singapore. He also served as the second Prime Minister of the Republic of Singapore from 28 November 1990 to 12 August 2004, succeeding Lee Kuan Yew, the former Prime...
made ministerial statements in Parliament on 17 August 1999 explaining the Government's views on the points raised.
Access to information
In order to exercise his constitutional functions, the President is entitled to request for information about the Government which is available to the Cabinet, and about the statutory boards and Government companies listed in the Fifth Schedule to the Constitution which is available to the board's members or the company's directors. The President may also ask any Minister, senior officer of a ministry or a government department, CEO and members of the governing board of a statutory board, and directors of any Government company to furnish information concerning the reserves of the Government, a statutory board or a Government company. At a meeting with the Accountant-General in August 1996, the President, having been given a list of the Government's physical assets, had commented that the monetary value of the assets should have been stated. The Accountant-General had then stated it
would take 56 (not 52) man-years to value the properties.
The Minister for Finance explained that his Ministry had asked the Attorney-General to advise it as to whether such a valuation was necessary. The Attorney-General's Chambers subsequently stated that the Constitution did not require Government property to be revalued, as the issue of whether past reserves were being drawn upon did not arise unless ownership of a piece of property was about to be transferred. In addition, a revaluation would lead to unnecessary expense since much state land would remain as such, and the value of each piece of land depended on planning and zoning restrictions which the Government could change.
Withholding of approval for CPF Board's budget
In December 1996, the CPA informed the President that for 1997 the CPF Board had budgeted for capital expenditure
Capital expenditure
Capital expenditures are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year...
of S$
Singapore dollar
The Singapore dollar or Dollar is the official currency of Singapore. It is normally abbreviated with the dollar sign $, or alternatively S$ to distinguish it from other dollar-denominated currencies...
27 million, which exceeded its operating surplus
Operating surplus
Operating surplus is an accounting concept used in national accounts statistics Operating surplus is an accounting concept used in national accounts statistics Operating surplus is an accounting concept used in national accounts statistics (such as United Nations System of National Accounts (UNSNA)...
of $23 million. Although the intention was for the excess of $4 million to be funded out of the Board's accumulated surpluses, because a general election was due in 1997 the Board's accumulated surpluses would become past reserves and require the President's approval to be drawn upon. The Government explained that the CPF Board's accounts were prepared on an accrual basis
Comparison of Cash Method and Accrual Method of accounting
The two primary accounting methods of the cash and the accruals basis are used to calculate US public debt, as well as taxable income for U.S. federal income taxes and other income taxes...
. Thus, capital expenditure was depreciated
Depreciation
Depreciation refers to two very different but related concepts:# the decrease in value of assets , and# the allocation of the cost of assets to periods in which the assets are used ....
over the useful life of each asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
and not indicated as a lump sum
Lump sum
A lump sum is a single payment of money, as opposed to a series of payments made over time .The United States Department of Housing and Urban Development distinguishes between "price analysis" and "cost analysis" by whether the decision maker compares lump sum amounts, or subjects contract prices...
in the year of expenditure. The Board's operating surplus of $23 million had been computed on the basis of annual depreciation of $11 million being charged against the year's income. Hence, no drawdown on past reserves was required. The President expressed concern that accrual accounting would "allow a profligate Government to hide its lavish spending under the guise of capital expenditures". The Government disagreed, taking the view that accrual accounting was well established.
Definition of net investment income
The President informed Government that he had been told that net investment income (NII) should be classified as current reserves, though he was not certain as he was not an accountant. The Government, having taken the Attorney-General's advice on the matter, said that NII was correctly treated as current income, as it is the interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
and dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
income
Passive income
Passive income is an income received on a regular basis, with little effort required to maintain it.The American Internal Revenue Service categorizes income into three broad types, active income, passive income, and portfolio income...
earned from investing the Government's reserves, less expenses on investment and debt servicing. It does not include capital gain
Capital gain
A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the investor...
s or losses
Capital loss
Capital loss is the difference between a lower selling price and a higher purchase price, resulting in a financial loss for the seller. The IRS states that "If your capital losses exceed your capital gains, the excess can be deducted on your tax return"....
from the disposal of investments, which are regarded as investment adjustments. Since the Constitution provides that the President has only custodial powers over past reserves, these powers do not extend to NII as they are accumulated during the current term of office of the Government, even when the NII stems from the investment of past reserves that are themselves "locked up". Nonetheless, the Government would take into consideration a suggestion from the President and the CPA to lock away half of the NII derived from past reserves as past reserves. In 2001, as indicated above, the Government amended the Constitution to redefine how NII should be treated.
Government's change in treatment of NII
Finally, the Government disagreed with the President that it had changed the way it treated NII. Furthermore, it had not been necessary to ask him to sanction the use of past reserves for its financial packages and the budget deficit as it had enough budget surpluses built up within its current term of office.
Following discussions between the President and the Government, in 1999 the Government issued a non-binding white paper entitled The Principles for Determining and Safeguarding the Accumulated Reserves of the Government and the Fifth Schedule Statutory Boards and Government Companies. Speaking in Parliament on 17 August 1999, the Prime Minister said:
Six months after his term of office ended, Ong gave an interview to Asiaweek
Asiaweek
Asiaweek, the English edition, was a news magazine focusing on Asia, published weekly by Asiaweek Limited, a subsidiary of Time Inc. Based in Hong Kong, it was established in 1975, and ceased publication with its December 7, 2001 issue due to a "downturn in the advertising market," according to...
magazine, during which he reiterated that he had only been given an incomplete list of the Government's immovable assets
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
halfway through his term. In addition, he claimed not to have been informed about "some ministerial procedures" as he had learned of the sale of the assets of the Post Office Savings Bank, a statutory board the reserves of which he was supposed to protect, to DBS Bank from the newspapers instead of being informed first. He mentioned: "[the Prime Minister] said that my statements, and his rebuttal in parliament, were probably a good thing. They showed the transparency of the system. I stand by what I said."
First use of financial powers
In January 2009, the Government requested approval from President S.R. Nathan to draw $4.9 billion from past financial reserves in order to meet current budget expenditure, the first time it had done so. The sum was used to fund the Government's Resilience Package consisting of two schemes aimed at preserving jobs and businesses during the financial downturn: the Jobs Credit scheme, which provided employers with financial assistance to pay employees' salaries; and the Special Risk-Sharing Initiative, which helped mid-sized companies to obtain credit. The President gave in-principle approval 11 days later on 21 January. During this time, the Government briefed him and the Council of Presidential Advisers (CPA), and the CPA considered the request and provided the President with its recommendation. Subsequently, at a press conference on 17 February, the President explained that when the Prime Minister had broached the subject informally on 10 January, he had agreed at that stage to give every consideration to the proposal as he and the CPA were already aware of the prevailing financial crisis and how it was impacting the country. He commented that he was not an Executive President and that the Executive was really the Government. It was for them to find solutions to the nation's problems and come out with proposals: "As to whether the proposals were right or wrong, we don't micro-manage Government. And it's for the Government in power to determine what is to be done." However, "[i]f they came with scatterbrained proposals I would have said no."Powers relating to key office holders
A 1988 White Paper issued by the Government stated that the success of Singapore could be attributed to the stable public sector, and that its stability might be diluted if an irresponsible government made key appointments based on considerations other than merit as "nepotism and corruption may result and the public service will collapse". For this reason, the Constitution provides that the President, acting in his discretion, may refuse to make an appointment to any of a number of key offices, or to revoke an appointment if he does not concur with the authority on whose advice he is required by law to act. The offices are:- the Chief Justice, Judges and Judicial Commissioners of the Supreme Court;
- the Attorney-GeneralAttorney-General of SingaporeThe Attorney-General of Singapore is the legal adviser to the government of the Republic of Singapore and its public prosecutor.The office was founded in 1867 as the chief legal officer of the British crown colony of the Straits Settlements. The current requirements for appointment as...
; - the chairman and members of the Presidential Council for Minority RightsPresidential Council for Minority RightsThe Presidential Council for Minority Rights is a non-elected government body in Singapore established in 1970, the main function of which is to scrutinize most of the bills passed by Parliament to ensure that they do not discriminate against any racial or religious community...
; - the chairman and members of the Presidential Council for Religious Harmony;
- the chairman and members of an advisory board constituted to determine if a person should continue to be placed in preventive detention without trial for security reasons;
- the Chairman and members of the Public Service Commission;
- members of the Legal Service Commission;
- the Chief Valuer;
- the Auditor-General;
- the Accountant-General;
- the Chief of Defence ForceSingapore Armed ForcesThe Singapore Armed Forces is the military arm of the Total Defence of the Republic of Singapore; as well as the military component of the Ministry of Defence. The SAF comprises three branches: the Singapore Army, the Republic of Singapore Air Force and the Republic of Singapore Navy...
; - the Chiefs of the Air ForceRepublic of Singapore Air ForceThe Republic of Singapore Air Force is the air arm of the Singapore Armed Forces. It was first established in 1968 as the Singapore Air Defence Command...
, ArmySingapore ArmyThe Singapore Army is the branch of the Singapore Armed Forces responsible for land operations. It is the largest of the three armed services and heavily reliant on a conscript army, comprising the majority of Singapore's Operationally Ready National Servicemen .-Capabilities:The mission of the...
and NavyRepublic of Singapore NavyThe Republic of Singapore Navy is the naval component of the Singapore Armed Forces , responsible for the defence of Singapore against sea-borne threats and protection of its sea lines of communications. Operating within the crowded littoral waters of the Singapore Strait, the RSN is regarded as...
; - members of the Armed Forces Council;
- the Commissioner of PoliceCommissioner of Police (Singapore)The Commissioner of Police is the top-ranking police officer of the Singapore Police Force. Assisted by the Deputy Commissioner of Police, he reports to the Minister for Home Affairs....
; and - the Director of the Corrupt Practices Investigation Bureau.
As a result of changes to the Constitution effected in 1996, Parliament may overrule the President's decision with a resolution passed by not less than two-thirds of all elected MPs if he refuses to make or revoke an appointment contrary to the CPA's recommendation. The President exercises similar powers as regards the appointment or revocation of appointment of the chairman, members or CEO of specified statutory boards and the directors or CEOs of Government companies, and his decisions in this respect may be overruled by Parliament in the same manner as decisions relating to the key office holders referred to above. This constitutional amendment reduced the power of the President to veto executive appointments.
The President appoints as Prime Minister an MP who, in his personal judgment, is likely to command the confidence of a majority of MPs.
Maintenance of Religious Harmony Act
The Maintenance of Religious Harmony Act authorizes the Minister for Home Affairs to make a restraining order for up to two years against a person in a position of authority in, or a member of, any religious group or institution where the Minister is satisfied that the person is attempting to commit or has committed any of the following acts:- causing feelings of enmity, hatred, ill-will or hostility between different religious groups;
- carrying out activities to promote a political cause, or a cause of any political party while, or under the guise of, propagating or practising any religious belief;
- carrying out subversive activities under the guise of propagating or practising any religious belief; or
- exciting disaffection against the President or the Government while, or under the guise of, propagating or practising any religious belief.
A restraining order can prevent a person from addressing orally or in writing any congregation, parish or group of worshippers or members of any religious group or institution on any subject, restrain him or her from assisting or contributing to any publication produced by any religious group, or prevent him from holding office in an editorial board or a committee of a publication of any religious group without the Minister's prior permission.
The Minister may also make a restraining order against a person other than those mentioned above who has committed or is attempting to commit an act causing feelings of enmity, hatred, ill-will or hostility between different religious groups; or who is inciting, instigating or encouraging a religious group or institution, or a leader or member of such a group or institution to do so. Such an order may restrain the person from addressing or advising any religious group or institution or any of its members, or making any statement or causing any statement to be made concerning or affecting relations between that religious group or institution and the Government or any other religious group or institution.
Once a restraining order is made, it must be referred to the Presidential Council for Religious Harmony, which must recommend to the President whether the order should be confirmed, cancelled or varied in some way. The President is required to consider the Council's recommendations and to decide whether the order should be cancelled or confirmed, and if confirmed whether any variations are necessary. He is required to act in accordance with Cabinet's advice on the matter, unless this conflicts with the Council's recommendation, in which case he may exercise personal discretion.
Internal Security Act
The Internal Security ActInternal Security Act (Singapore)
The Internal Security Act of Singapore is a law that allows the Singapore government to investigate security threats like international terrorism, foreign subversion, espionage and acts of violence or hatred using race or religion...
, among other things, authorizes the Minister for Home Affairs to make an order directing that a person be detained for up to two years at a time if the President is satisfied that the detention is necessary to prevent the person from acting in a manner prejudicial to the security of Singapore or the maintenance of public order or essential services. A detained person is entitled to make representations to an advisory board made up of a chairman appointed by the President who is or has been, or is qualified to be, a Supreme Court Judge, and two other members appointed by the President after consulting with the Chief Justice. An advisory board must consider the representations and make recommendations to the President within three months from the date of detention. If an advisory board recommends that a detainee be released, and the government authority on whose advice or order the person was detained disagrees with the board's recommendation, the President has a personal discretion as to whether the person should continue to be detained. The President's power in this area is restricted by the requirement that the board must recommend the detainee's release; if further detention is recommended, the President has no power to direct otherwise.
Corrupt Practices Investigation Bureau investigations
The Director of the Corrupt Practices Investigation BureauCorrupt Practices Investigation Bureau
Corrupt Practices Investigation Bureau is a government agency in Singapore which investigates and prosecutes corruption in the public and private sectors...
may seek the President's assent to inquire or carry out investigations regarding information received about the conduct of any person, or any allegation or complaint made against any person. If the President exercises his discretion in concurring with the Director, he or she is permitted to proceed with the investigations, notwithstanding the Prime Minister's refusal to consent. This is one of the few instances where the President's power is not limited by some other body.
Granting of pardons, reprieves and remissions
Subject to Cabinet's advice, the President is empowered to pardonPardon
Clemency means the forgiveness of a crime or the cancellation of the penalty associated with it. It is a general concept that encompasses several related procedures: pardoning, commutation, remission and reprieves...
offenders, or accomplices who provide information leading to the conviction of principal offenders in crimes. He may also grant offenders a reprieve or respite from the execution of any sentence; and wholly or partially remit an imposed sentence, penalty or forfeiture. In the case of death sentences, the President must call for reports made to him by the judge who tried the case and the Chief Justice or other presiding judge of the appellate court which heard the appeal in the matter to be forwarded to the Attorney-General. The reports, along with the Attorney-General's opinion on the case, are then forwarded to Cabinet which then advises the President as to whether to exercise his powers.
Article 5(2A) – the sleeping provision
Article 5(2A) of the Constitution allows the President to direct that any bill seeking to amend certain important clauses of the Constitution shall not be passed by Parliament unless it has been supported at a national referendum
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...
by not less than two-thirds of the total number of votes cast by the electors. The clauses are:
- Article 5(2A) itself, and Article 5A which confers discretion on the President to withhold assent to a bill seeking to amend the Constitution that provides for the circumvention or curtailment of his discretionary powers;
- the fundamental libertiesHuman rights in SingaporeAccording to U.S. Department of State Country Reports on Human Rights Practices, there have been no reports of human rights abuses by security forces in Singapore. The Singapore government maintains effective control over all security activities, and generally respects the human rights of its...
in Part IV; - provisions dealing with the President in Chapter 1 of Part V, and Article 93A which confers jurisdiction on the Supreme Court to determine questions relating to the validity of a presidential electionPresidential elections in SingaporePresidential elections in Singapore, in which the President of Singapore is directly elected by popular vote, were introduced through amendments to the Constitution of Singapore in 1991. Potential candidates for office have to fulfil stringent qualifications set out in the Constitution....
; - Articles 65 and 66, which mandate the dissolution of Parliament every five years and the holding of a general electionParliamentary elections in SingaporeParliamentary elections in Singapore must be held within three months after five years have elapsed from the date of the first sitting of a particular Parliament of Singapore. However, in most cases Parliament is dissolved and a general election called at the behest of the Prime Minister before the...
thereafter; and - other provisions in the Constitution which authorize the President to act in his discretion.
This provision, however, was not immediately brought into force when enacted, as the Government stated at the time that a grace period of at least four years was needed for modifications and refinements to the Elected President scheme to resolve unforeseen problems that arose upon implementation. Article 5(2A) has still not been brought into force. On 21 October 2008, in response to a question by NMP Thio Li-ann
Thio Li-ann
Thio Li-ann is a Singaporean law professor at the National University of Singapore. She was educated at the University of Oxford, Harvard Law School and the University of Cambridge. In January 2007, she was appointed a Nominated Member of Parliament in Singapore's 11th Parliament.-Early life and...
, the Prime Minister Lee Hsien Loong
Lee Hsien Loong
Lee Hsien Loong is the third and current Prime Minister of Singapore. He is married to Ho Ching, who is the Executive Director and Chief Executive Officer of Temasek Holdings. He is the eldest son of Singapore's first Prime Minister Lee Kuan Yew....
said:
Articles 5A and 22H
The original Article 22H of the Constitution provided the President with personal discretion to withhold assent to any bill (other than a bill to which Article 5(2A) applies) which provided directly or indirectly for the circumvention or curtailment of the discretionary powers conferred upon the President by the Constitution. At that time, Article 5(2A) provided that the President could prevent Parliament from passing a bill seeking to amend certain specified clauses of the Constitution, including those dealing with the President's powers, unless it had been supported by not less than two-thirds of the votes cast at a national referendum. However, as Article 5(2A) was not yet in force, a question arose as to whether the Government was entitled to amend the Constitution in a way that circumvented or curtailed the President's discretionary powers, or whether Article 22H prohibited this entirely.
To resolve the issue, Article 100 was inserted into the Constitution to enable the President to refer to the Constitution of the Republic of Singapore Tribunal
Constitution of the Republic of Singapore Tribunal
The Constitution of the Republic of Singapore Tribunal was established in 1994 pursuant to Article 100 of the Constitution of the Republic of Singapore...
any question as to the effect of any constitutional provision. President Ong Teng Cheong then referred to the Tribunal, which consisted of three Supreme Court judges, the issue of whether he had the power under Article 22H(1) to withhold assent to any bill seeking to amend any of the provisions referred to in Article 5(2A), and specifically to any bill seeking to amend Article 22H to restrict the application of the President's powers under that Article to non-constitutional bills. In a judgment delivered on 20 April 1995, the Tribunal held that even though Article 5(2A) was not in force, the Government's intent in including it as part of the Constitution had to be considered. Looking at it in this way, it was clear that Article 5(2A) was intended to deal with bills seeking to amend the Constitution, while Article 22H covered only ordinary bills. Therefore, the President had no power under Article 22H to withhold his assent to any bill seeking to amend the Constitution, and in particular any of the provisions referred to Article 5(2A).
In 1996, Article 5A was inserted into the Constitution and Article 22H were amended to clarify the situation by providing different procedures for circumventing or curtailing the President's discretionary power, depending on whether the Government seeks to do so by way of an ordinary bill or a bill seeking to amend the Constitution. Article 22H deals with attempts to alter the President's powers by introducing an ordinary bill. If this occurs, the President may exercise personal discretion to withhold assent to the bill. The Cabinet may, if it wishes, advise the President to refer to the Constitution Tribunal the question whether the bill in fact has the effect of circumventing or curtailing his discretionary powers. If the Tribunal determines that the bill does not have that effect, the President is deemed to have assented to the bill on the day following the day when the Tribunal's opinion is pronounced in open court
In open court
In open court is a legal term in the United States defined by the appearance by a party or their attorney in a public court session such as during a trial...
.
On the other hand, Article 5A deals with attempts to alter the President's power by amending the Constitution itself. When the provision is brought into force, the President will also be able to decline to assent to a bill seeking to amend the Constitution that has a direct or indirect effect of circumventing or curtailing his discretionary powers. In this case, the Cabinet may also advise the President to refer to the Tribunal the question of whether the bill indeed has this effect. If the Tribunal rules that the bill does not have this effect, the President is deemed to have assented to the bill on the day immediately following the day when the Tribunal pronounces its opinion in open court. On the other hand, if the Tribunal decides to the contrary and the Government wishes to push the amendment through in the face of the President's opposition to it, the Prime Minister may opt to submit the bill to the electorate. If the bill is supported at a national referendum by not less than two-thirds of the total number of votes cast, the President is deemed to have assented to the bill on the day immediately following the day when the results of the referendum have been published in the Government Gazette.