Opening Remarks by Mrs Chia-Tern Huey Min, ACRA Chief Executive, at the ACCA Annual Conference 2024 on 25 Oct 2024

Ms Magdalene Ang, Vice Chair, ACCA Singapore Members Network Panel,

Mr Pulkit Abrol, Director, Asia Pacific, ACCA,

ACCA Members, 

Distinguished Guests,

Ladies and Gentlemen.

1. Good morning. Thank you for inviting me to the ACCA Singapore flagship annual conference; it’s a pleasure to be here – to see many familiar faces and also meet new friends. The conference theme this year, “Reinventing the Profession for a Changed World” is relevant and timely. I will speak about two broad trends that have positively reshaped the development of the accounting profession: environmental sustainability and technological disruption.

2. These global trends have already had a profound impact on policy and enterprise - transforming industries and how companies operate. Likewise, those in the accounting profession, have to embrace these changes, learn and adapt our approaches to stay relevant in a changed business environment.

The Role of Accountancy in a Changed World

3. First, environmental sustainability. For many, this is about the world we will leave behind for future generations. We have already seen huge strides made by the industry in advancing sustainability. Our banks have pledged to phase out new financing for highly-pollutive coal mining projects and have made sustainable financing an important part of their portfolios. Our urban environment has also been significantly transformed with greener buildings. The use of climate technology such as solar panels, central cooling systems, and green materials are becoming commonplace in Singapore.

4. For the accounting profession, ESG (Environmental, Social and Governance) reporting is one example of our indirect but not insignificant contribution to the climate challenges our world faces. Starting from Financial Year 2025, listed companies in Singapore will be required to make climate-related disclosures, aligned with the standards of the International Sustainability Standards Board, together with their financial reporting. The role the profession plays in enabling these disclosures will make accountants valuable advisors in sustainable business practices.

5. Our survey of accounting entities conducted last year revealed encouraging trends in this area. The accounting entities surveyed were most optimistic about growth in sustainability assurance and advisory related services, projecting a growth of up to 19% in these services in 2024. The anticipated demand for talents in sustainability assurance and advisory related services in accounting entities was also projected to increase significantly, growing by nearly threefold from 240 jobs to approximately 700 by 2025. These findings indicate a growing demand for such services and opportunities for the accountancy sector.

6. One significant upside about this growth area is that it makes accountancy as a profession much more attractive to young professionals and students considering their career paths or university specialisations. We are seeing a new generation of talents who are much more socially and environmentally aware. As part of ACRA’s efforts to promote accountancy as a career, we are making a conscious effort to appeal to those who are looking for purposeful work that is aligned with their values – by highlighting sustainability reporting and assurance.

7. So, I am pleased to note that ACCA and KPMG will be launching a new programme to equip accountants and non-accountants with the relevant ESG skills. Initiatives like these are a welcome response to the urgent need for ESG competencies and will help raise standards in this growing area. 

8. Second, technological disruption. We often get questions about whether AI will put accountants out of a job. The clear response is no!

9. AI has emerged as a powerful tool for the accounting profession to harness. AI-powered analytical tools excel at processing vast volumes of financial data, swiftly identifying trends, outliers, and anomalies that could impact financial statements. This capability expands the competencies of accountants; because such analytical tools enable accountants to extract deeper insights into financial performance, and help companies spot potential issues or opportunities with unprecedented speed and accuracy.

10. With the adoption of AI, it has therefore become clearer than before that the true value of accountants lies beyond mere data processing. While AI enhances efficiency and effectiveness, it is the accountant's expertise, judgement, and ability to interpret complex financial data that transforms technology-enabled outputs into actionable strategies. The human element remains irreplaceable in providing nuanced analysis, ethical guidance, and strategic decision-making—areas where technology alone falls short.

11. So, while AI serves as a valuable tool in the accountant's arsenal, it complements rather than replaces human expertise. The synergy between AI's data-processing capabilities and the accountant's professional acumen creates a powerful combination, driving the accounting profession forward in the digital age. 

ACRA’s role in supporting the professional in embracing the new world

12. Embracing these transformative changes requires effort and support by the profession and ACRA is actively supporting this transition. I will share three ways in which we are doing so. 

13. Firstly, we are supporting companies in developing sustainability reporting capabilities. Later in this session, Rodney Huang, ACRA's Director of the Sustainability Reporting Office, will speak and share insights into Singapore's climate reporting and assurance roadmap. He will also outline the available support measures and detail the steps that companies and assurance providers can take to prepare for the mandatory sustainability reporting and assurance requirements.

14. Secondly, ACRA has introduced the Productivity Solutions Grant (PSG) for Accountancy to encourage digitalisation in accounting firms. This grant supports firms in adopting digital solutions to boost automation and productivity, and enable higher-value work. Since its launch in 2023, ten solutions across six categories have been pre-approved, with over 100 applications received.

15. Finally, as many of you would already know, in May this year, the Accountancy Workforce Review Committee (AWRC) issued its recommendations to raise the attractiveness of an accountancy career and build a sustainable talent pipeline in Singapore. Since then, I am heartened to see various stakeholders including accounting firms, Institutes of Higher Learning, and professional bodies including ACCA, each playing its part in developing and promoting the profession, from raising the appeal of Accountancy careers through salary revisions to enhancing learning support that strengthens the professional capabilities of accountants. 

Closing

16. In closing, I return to this year’s theme “Reinventing the Profession for a Changed World”. I believe we are well-equipped to reinvent ourselves to embrace any changes ahead. 

17. Thank you, and I look forward to the enriching discussions ahead and to working with all of you as we shape the future of accountancy in Singapore and beyond.