Singapore Telecommunications Ltd
Annual Report 2018

Ready, set,

   DIGITAL!

Annual Report 2018

 
 
 
Table of Contents

Overview
An overview of our businesses, our performance, key 
achievements and value created, as well as our strategy 
moving forward
1 
3 
5  
8  
11  
13  
15  
17  
27   Organisation Structure
28   Management Committee
34  

Financial Highlights
FY 2018 Achievements
Chairman’s Message
GCEO Review
Who We Are
Our Businesses and Strategy
The Value We Create
Board of Directors

Senior Management

Business Reviews
Insights into each of our business units
35  
49  
55  
61  

Group Consumer
Group Enterprise
Group Digital Life
Key Awards and Accolades

Governance and Sustainability
Our corporate governance, risk management 
and sustainability efforts
63 
65 
97 
99 
108 

Governance and Sustainability Philosophy
Corporate Governance
Investor Relations
Risk Management Philosophy and Approach
Sustainability

Performance
Our financial performance
116   Group Five-year Financial Summary
118   Group Value Added Statements
119  Management Discussion and Analysis

Independent Auditor’s Report

Financials
Audited financial statements
129  Directors’ Statement
139  
145   Consolidated Income Statement
146   Consolidated Statement of Comprehensive Income
Statements of Financial Position
147 
148   Statements of Changes in Equity
152   Consolidated Statement of Cash Flows
155   Notes to the Financial Statements

Additional Information
Our shareholders, transactions with interested 
persons and other corporate information
250  
251   Shareholder Information
253   Corporate Information
254   Contact Points

Interested Person Transactions

2

3

Singapore Telecommunications Limited  |  Annual Report 2018OPERATING REVENUE

2018

2017

S$17,532M

S$16,711M

+4.9%

EBITDA

2018

2017

S$5,089M

S$4,998M

+1.8%

NET PROFIT

UNDERLYING NET PROFIT

2018

S$5,451M (1)

+41.5%

2017

S$3,853M

2018

2017

S$3,544M

S$3,871M

-8.4%

FREE CASH FLOW

SHAREHOLDER PAYOUT

2018

2017

S$3,606M

+18.1%

S$3,054M (2)

2018

2017

S$3,347M

+17.2%

S$2,857M

RETURN ON EQUITY

RETURN ON INVESTED CAPITAL

2018

2017

18.8%

14.5%

+4.3
percentage 
points

2018

2017

14.7% (3)

10.9%

+3.8
percentage 
points

CONSTANT CURRENCY

NET PROFIT

UNDERLYING NET PROFIT

2018

S$5,478M (1)

2017

S$3,853M

+42.2%

2018

2017

S$3,569M

S$3,871M

-7.8%

Notes: 
(1)     Includes an exceptional gain of S$2.03 billion from the disposal of 75.2% effective interest in NetLink Trust.
(2)    After payment of A$134 million (S$142 million) to the Australian Taxation Office for amended assessments under dispute.
(3)    Return on invested capital is defined as EBIT (post-tax) divided by average capital. For FY 2018, EBIT included the gain on disposal of economic interest 
       in NetLink Trust.

1

Financial HighlightsUNDERLYING NET PROFIT
Contribution by Geography

OPERATING REVENUE  
Contribution by Products and Services

11%

6%

S$17,532M

17%

34%

12%

20%

S$3,544M

47%

Regional  
Associates

24%

Australia

29%

Singapore (4)

Digital Business
ICT
Mobile Communications

Data and Internet
Sale of Equipment
Others (5)

SHAREHOLDER PAYOUT

Dividend per share (S¢)

2018

2017

2016

2015

2014

Ordinary Dividend
Special Dividend

17.5

3.0

17.5

17.5

17.5

16.8

Singtel has a track record of generous shareholder payouts.

For the financial year ended 31 March 2018, the Board has 
recommended a final ordinary dividend of 10.7 Singapore 
cents a share. Together with the interim dividend of 6.8 
Singapore cents, the total ordinary dividend for the year  
is 17.5 Singapore cents, unchanged from last year. The 
Group also paid a special dividend of 3.0 Singapore cents 
from NetLink Trust divestment proceeds.

Refer to page 127 for the Group’s capital management and 
dividend policy.

Notes: 
(4)     Includes losses from Trustwave and Amobee.
(5)     Includes National telephone, International telephone and Pay television.

2

Singapore Telecommunications Limited  |  Annual Report 2018 
 
The Group has achieved a lot since our last annual report. We launched new products 
and services and bolstered our core and digital capabilities.

Invested in SEA-Australia  
and SEA-North Asia  
submarine networks

Commissioned the INDIGO and SJC2 
submarine cable systems with consortium 
partners. They will enhance connectivity 
between Australia and Southeast Asia 
as well as between Southeast Asia and 
North Asia when completed in mid-2019 
and 2020 respectively.

SJC2

INDIGO

Served as the official support 
network of the 2018  
Commonwealth Games

Optus was the official support network 
of the Gold Coast 2018 Commonwealth 
Games, providing communications 
infrastructure and managed services.

Unveiled Asia’s first cross-
border payments initiative  
using telco wallets

Launched initiative to connect telco and 
non-telco wallets across different markets 
with the first phase between Singtel and 
AIS in Thailand planned for the third 
quarter of 2018.

3

FY 2018 AchievementsInvested in data  
analytics, robotics and  
Internet of Things (IoT)

Partnered Nanyang Technological 
University (NTU) and the Agency for 
Science, Technology and Research 
(A*STAR) in Singapore to develop AI, 
advanced data analytics, robotics  
and IoT capabilities.

Launched nationwide  
cellular IoT network

Launched cellular IoT network across 
Singapore, supporting CAT-M1 and  
NB-IoT technologies. 

Acquired mobile  
operations in India

Airtel acquired Telenor India. It also 
entered into an agreement with  
Tata to acquire the consumer mobile  
business of Tata Teleservices in India.

Debuted unlimited data, 
talktime and SMS

Introduced Singapore’s first mobile  
plans with unlimited data, talktime  
and SMS.

Created cyber security  
hub for start-ups

Singtel Innov8 and the National University 
of Singapore (NUS) launched Singapore’s 
first regional cyber security start-up hub 
ICE71. 

Unlocked value in  
NetLink Trust

Reduced 100% stake in NetLink Trust to 
24.99%, fulfilling regulatory requirements 
to divest stake to less than 25% before  
22 April 2018.

Introduced QR code  
payment in Singapore

Launched SG QR code payment  
on Singtel Dash in Singapore.

Introduced QR code  
payment in the  
Philippines

Globe launched QR code payment on 
GCash in the Philippines.

Launched near-gigabit  
mobile data speeds

Activated 800Mbps mobile data speeds  
at selected high-traffic outdoor locations  
in Singapore.

4

Singapore Telecommunications Limited  |  Annual Report 2018Chairman’s Message

“By repositioning 
our businesses for 
a digitally centric 
world, we have 
been able to benefit 
from the growth 
of data, driven 
by smartphone 
adoption, growing 
video consumption 
and the numerous 
applications, which 
have become central 
to consumers’ lives.”

5

Chairman’s MessageDear Shareholders,

Singtel delivered a record profit of S$5.45 billion for the 
year just ended, with the successful IPO of NetLink Trust. 
However, underlying earnings declined 8%, largely the 
result of a decline in Airtel’s India earnings and charges 
from increased network investments and spectrum. 
Overall, earnings remain resilient and we have made solid 
progress on our digital transformation.

A CHANGING COMPETITIVE LANDSCAPE
In prior years, I highlighted the growing competition from 
OTT players disrupting our business. By repositioning 
our businesses for a digitally centric world, we have 
been able to benefit from the growth of data, driven by 
smartphone adoption, growing video consumption and 
the numerous applications, which have become central to 
consumers’ lives.

We are now entering an era of heightening competition, 
with the entry of new mobile operators across a number 
of our markets – a fourth operator in both Singapore 
and Australia, a possible third operator in the Philippines 
and an aggressive new player in India which has 
been described as the world’s largest start-up with an 
investment in the order of US$30 billion.

In India, Airtel is navigating a brutal price war led by 
the new entrant that has seen the number of operators 
reduced from more than a dozen to four in two years. 
While this is painful in the short term, we have arrived 
at a more sustainable market structure. Given the right 
regulations and fair policies, this can be expected to 
deliver benefits as industry earnings normalise. During 
the year, we increased our stake in Bharti Telecom, Airtel’s 
holding company, as we continue to take a long-term 
strategic view of the future of “digital” India.

Singtel has prepared itself for increased competition by 
investing in content, networks and spectrum. These are 
key to leading in customer experience, while providing 
the capacity for growth in an increasingly digital world.  
We have implemented 4.5G and are trialling 5G.

PROGRESS IN DIGITAL TRANSFORMATION 
Considerable progress has been made on digitalising  
the core of Singtel’s operations, incorporating data 
analytics, machine learning and artificial intelligence.  
This provides critical insight into operations, drives 
efficiency, improves agility and positions us well for  
the Internet of Things era.

Our digital businesses are building new revenue streams 
with ICT and digital now accounting for nearly 25% of 
revenue. Smart cities, cloud, digital marketing and cyber 
security lead the growth.  

Our digital marketing business Amobee has reached 
scale and is now EBITDA positive. The acquisition of Turn, 
a global programmatic advertising platform, added new 
capabilities and has since been successfully integrated.

In cyber security, we are integrating all the Group’s 
operations into a single global unit, as we continue to 
scale and build out a global business. This brings together 
10 advanced Security Operations Centres and 2,000 
cyber security professionals in Asia Pacific, Europe and 
the Americas under a newly appointed global CEO. 

Your Board is conscious of the investment in building 
these new businesses and will ensure value is unlocked 
when we judge it appropriate.

CORE BUSINESS PROVES RESILIENT  
Despite increased competition, our Singapore and 
Australia businesses have proved resilient, leveraging 
network investments to deliver high quality mobile 
access, compelling content and competitive pricing. 

The significant investments made in network and content 
in Australia have differentiated the business and led to 
strong customer growth.

Enterprise business revenues have grown on the strength 
of smart cities and ICT projects.

6

Singapore Telecommunications Limited  |  Annual Report 2018“Our digital businesses are building 
new revenue streams with ICT and 
digital now accounting for nearly 
25% of revenue. Smart cities, 
cloud, digital marketing and cyber 
security lead the growth.”

DIVIDENDS
Your Board has recommended to shareholders the 
payment of a final dividend of 10.7 cents. If approved, 
taken together with the interim dividend of 6.8 cents  
and special dividend of 3.0 cents paid, brings the  
full year payout to 20.5 cents. 

GOVERNANCE
Governance is constantly evolving and remains central 
to long-term business sustainability and value creation. 
Singtel’s efforts continue to prove impactful, with the 
Group included in the World’s Most Ethical Companies 
2018 for the eighth straight year by Ethisphere and 
ranked for the second year running in Corporate Knight’s 
Global 100 Most Sustainable Corporations. We are now 
the top ranked Singapore company and second highest 
ranking for the global telco sector in Global 100. These 
recognitions tell us we remain on the right governance 
path.

Mr Peter Ong retires after seven years on the Board 
and I would like to acknowledge and thank him for his 
contribution and service.

The Board is of the view that a dividend of 17.5 cents  
is sustainable for the next two financial years. Thereafter, 
barring unforeseen circumstances, the Group will 
continue with the payout ratio of 60 to 75% of underlying 
net profit. 

Yours sincerely,

SIMON ISRAEL
Chairman

DEEPENING SUSTAINABILITY COMMITMENTS 
We have deepened our commitments to sustainable 
development in the past year, playing a leadership 
role in various aspects of sustainability that are aligned 
with global sustainability development goals. Through 
our stakeholder engagement, the Singtel Board 
and Management identified key concerns such as 
customer data privacy and protection, climate change 
and cyber bullying. These risks and concerns have 
become important opportunities to strengthen our risk 
management, and create value and long-term growth  
for our organisation. 

I encourage shareholders to read the full report found at
singtel.com/sr2018. 

7

Chairman’s MessageDear Shareholders,

ACCELERATING OUR DIGITAL TRANSFORMATION
The past year is the sixth since we embarked on our 
transformation journey, crossing the threshold into digital 
where disruption is rampant and change is constant. 
Despite the challenging operating environment and 
intensifying competition, we managed to accelerate the 
build out of our new digital businesses in cyber security 
and digital marketing, and digitalise and strengthen 
our core business. The resiliency of our earnings while 
we accelerated changes to our business speaks to the 
success of our efforts thus far. Our net profit for FY 2018 
was S$5.45 billion on divestment gains from unlocking the 
value of NetLink Trust and a strong performance by our 
core business. Our ICT and new digital businesses now 
represent a meaningful 24% of Group revenue and have 
helped change our revenue profile.

STRENGTHENING OUR CORE BUSINESS 
Our core consumer business across Singapore and 
Australia performed well as we continued to push forward 
on content and innovation to stay relevant to customers. 
High quality mobile and broadband, compelling content 
and competitive pricing remain at the heart of our value 
proposition to the market. Data-free streaming and our 
focus on premium sports content such as the Premier 
League and World Cup and quality offerings such as 
Netflix and National Geographic continued to pay off. 
Optus acquired a record number of postpaid handset 
mobile customers and Singapore strengthened its market 
leadership.

trials at the Commonwealth Games in the Gold Coast as 
we further explore ways to use technology to empower 
and help customers simplify their lives and run their 
businesses. 

CAPTURING NEW GROWTH THROUGH DIGITAL 
The Group’s digital businesses are adding new value as 
organisations increasingly adopt digital platforms and 
modes of operating, from marketing to cyber security 
to smart city solutions. Recent cyber security breaches 
around the world and the increasing migration to cloud 
services underlined the need for organisations to further 
secure their operating environments and information 
against cyber threats. To position ourselves well for  
global leadership in this area, we have integrated all our 
cyber security assets into a single global cyber security 
unit. Our cyber-related revenues totalled S$530 million 
in FY 2018. Recognising that cyber security requires a 
wide range of defence capabilities, we recently partnered 
SoftBank, Telefónica and Etisalat to create the first Global 
Telco Security Alliance offering enterprises access to  
a comprehensive portfolio of cyber security services. 

On the digital marketing front, our Amobee investment  
is showing green shoots, crossing S$1.1 billion in  
revenue as EBITDA turned positive for the first time.  
The company’s operating performance strengthened  
with the acquisition of Turn which helps brands optimise 
their media spend with their programmatic platform. 
We have also moved to scale the US-based business 
globally, expanding its operations to Asia and increasing 
its client base.

As we strive to delight our customers, we continue 
to invest heavily in our networks so it can handle the 
huge volume of video and data traffic that customers 
are increasingly consuming. In Australia, we committed 
another A$1 billion in networks to improve and expand 
mobile coverage in rural and regional Australia. It is 
important to us that all Australians, wherever they reside, 
can have the same network experience and access to 
premium content. We are also taking the lead on the 
next technology wave like 5G, which we believe will truly 
transform the way that customers and enterprises connect 
– with us and with each other. In Singapore, we were the 
first operator to launch the first nationwide commercial 
cellular IoT network. In Australia, Optus launched 5G 

TAKING A LONG-TERM VIEW ON DIVERSIFICATION  
While our regional associates continue to ride the  
growth in data, Airtel in India had a challenging year  
as an aggressive new operator triggered unprecedented  
market disruption and price erosion. While competition 
remains intense, we believe fair regulatory policies and 
sector consolidation should lead to a more stable  
market structure in the mid term. Our long-term view on 
India’s prospects remains positive as we increased  
our effective stake in Airtel to 39.5% last year.  

Elsewhere in the region, while Telkomsel’s earnings were 
impacted by declines in legacy services and heightened 
price competition, it continued to leverage its network 

8

Singapore Telecommunications Limited  |  Annual Report 2018GCEO Review“The resilience 
of our revenues 
this past year, 
the increasingly 
competitive 
business 
environment 
notwithstanding, 
demonstrates 
our team’s 
commitment 
to transformation 
and ability to 
execute at the 
operational level.”

9

GCEO Reviewsuperiority and rising smartphone penetration to grow 
its digital businesses and spur data usage. In Thailand, 
AIS’ profit grew on revenue improvement and cost 
management while Globe in the Philippines registered 
strong earnings growth, deepening its leadership in the 
market. 

We remain focused on the long term when it comes to 
our regional diversification strategy as it has given us 
exposure to high-growth developing markets where 
populations are not just growing but getting more affluent, 
promising greater smartphone adoption and increasing 
digitalisation, all of which are growth positive. Together  
with our associates, the Group now serves some 650 
million mobile customers across 21 countries.  

UNLOCKING DIGITAL GROWTH IN THE REGION
This footprint spells even greater opportunities for our 
Group and our associates as we move to leverage each 
other’s reach and capabilities to scale our businesses 
and better serve our customers. We recently announced 
for example, Asia’s first telco-enabled mobile wallet 
technology that will allow consumers to transact 
seamlessly across different digital payment ecosystems 
through an interoperable platform. Seen in the context 
of ASEAN’s vision of a single digital market, the Singtel 
Group of companies are particularly well-placed to  
help facilitate and accelerate the creation of such  
a market, working in tandem with government and the 
private sector.

CHAMPIONING SUSTAINABILITY FOR OUR 
COMMUNITIES 
Besides creating value for our shareholders and our 
customers, we firmly believe in supporting and serving the 
communities in which we operate. Reinforcing our belief 
that technology should benefit everyone, our Singtel 
Group digital citizenship programmes have supported 
more than 140,000 students by teaching them to be 
digitally safe and savvy. Singtel Group Future Makers, 
our social innovation programme covering Australia, 
Singapore and the Philippines saw six start-ups receive 
funding to develop socially impactful businesses. We were 
also among the first in Singapore to pilot the SkillsFuture 
for Digital Workplace training programme to raise digital 
literacy and skills among our employees. Beyond our 
immediate workforce, we have also worked with partners 
to put in place holistic programmes to develop skills for 

“We remain focused on the long 
term when it comes to our regional 
diversification strategy as it has 
given us exposure to high-growth 
developing markets where 
populations are not just growing 
but getting more affluent, promising 
greater smartphone adoption and 
increasing digitalisation, all of which 
are growth positive.”

a digital world, launching the Innovation Cyber Security 
Ecosystem at Block 71 in collaboration with the National 
University of Singapore, IMDA and the Cyber Security 
Agency. We have an energised team, excited about our 
future and that of our communities, and ready and willing 
to drive our digital growth ambitions and beliefs.

STAYING THE COURSE OF TRANSFORMATION 
Singtel has undergone numerous transformations through 
the years, from statutory board to public-listed company  
to multinational and has been disciplined in looking  
for and building new businesses and growth areas. The 
challenge has always been how to navigate transitions 
to new business models while protecting the value of 
our existing businesses. The resilience of our revenues 
this past year, the increasingly competitive business 
environment notwithstanding, demonstrates our team’s 
commitment to transformation and ability to execute at 
the operational level. 

I would like to thank the Singtel team for staying the 
course, the Board for their guidance, and our partners and 
shareholders for their support. As we further chart our 
course of transformation, I’m confident that having come 
from a position of strength, a strong digital foundation is 
now in place, anchored by relevant assets, to evolve our 
business and capture the opportunities ahead. 

Yours sincerely,

CHUA SOCK KOONG
Group Chief Executive Officer

10

Singapore Telecommunications Limited  |  Annual Report 2018GCEO ReviewWho We Are

As one of Asia’s leading communications technology groups, Singtel provides 
an extensive range of telecommunication and digital services to consumers and 
enterprises, with a keen understanding of the unique needs of the region’s different 
markets. Together with our regional associates AIS, Airtel, Globe and Telkomsel,  
the Group’s presence spans Asia, Australia, Africa and the US. We now reach over 
650 million mobile subscribers and derive more than 70% of our earnings from 
outside of Singapore. We’re constantly innovating in both our core telco business 
and the areas of future technologies, to enrich our customers’ experiences and 
empower them with the necessary technology to thrive in their daily lives. 

139 years

of operating experience

BHARTI AIRTEL
Airtel has operations in 
14 African countries

Over

650 million

mobile customers in

21

countries

66

global offices in

428

points of presence in

27

countries

362 cities to serve enterprises

11
11

Over

70%

of earnings from operations 
outside of Singapore

39.5% effective interest
Mobile customers:
304m (India)
2.3m (South Asia)
89m (Africa)
26% market share (India)

23.3% of ordinary shares
40m mobile customers
45% market share

21.0% of ordinary shares
An investor in telcos, media 
and technology

35.0% effective interest
193m mobile customers
47% market share

47.1% of ordinary shares (1)
63m mobile customers
52% market share

4.1m mobile customers
49% market share (mobile)
0.6m broadband customers
43% market share (broadband)

100% subsidiary
10.1m mobile customers
28% market share (2) (mobile)
1.2m broadband customers

Notes: 
(1)     Singtel has 21.5% interest in Globe’s voting shares.
(2)     Revenue market share for the six months to 31 December 2017.
       All figures as at 31 March 2018 unless otherwise stated.

Singapore Telecommunications Limited  |  Annual Report 2018

12
12

Singapore Telecommunications Limited  |  Annual Report 2018From telco to global  
communications  
technology company 

TRANSFORMATION  
   STRATEGY

GROUP CONSUMER

VISION

To be Asia Pacific’s  
best communications 
technology company

GOAL

To create sustainable  
long-term growth,  
to deliver superior  
returns to shareholders 
and positive impact  
to stakeholders

Strengthen 
and drive 
growth  
from the core

Create  
innovative, 
differentiated 
digital  
services

Data

Content

GROUP ENTERPRISE

Cloud 

Cyber 
security

Smart 
cities

GROUP DIGITAL LIFE

Digital
marketing

Data
analytics

OTT
video

13

Our Businesses and StrategySingtel embarked on a company-wide digital transformation more than five years ago 
to rebuild our business around data and digital. As digital eroded industry barriers and 
disrupted old business models, going digital has meant developing strategies that go 
beyond the context of our telco industry. Instead, we have leveraged our telco assets 
and customer relationships to develop new businesses such as cyber security, digital 
marketing and smart city solutions. We have also begun building a digital ecosystem 
with our associates to aggregate millions of customers across the region. As digital 
has revolutionised consumer behaviour and company processes, we have also 
digitalised our core consumer and enterprise businesses. 

Our new growth initiatives have grown from strength to strength – our digital and  
ICT businesses now contribute nearly 25% of Group revenue.

REGIONAL 
ASSOCIATES

Offers a range of digital services from music, OTT video, 
to mobile payments in addition to voice, messaging, 
broadband and pay-TV.

STAKEHOLDERS

Read more about Group Consumer from page 35 - 48.

CUSTOMERS

Delivers core enterprise ICT services as well as cloud, 
cyber security and smart city solutions.

Read more about Group Enterprise from page 49 - 54.

Focuses on digital marketing, data analytics and OTT video.

Read more about Group Digital Life from page 55 - 60. 

INVESTORS

EMPLOYEES

COMMUNITIES

14

Singapore Telecommunications Limited  |  Annual Report 2018The Value We Create

Beyond connecting people and enabling businesses, we believe in creating value for 
our customers, our investors, our people, and the communities in which we operate. 

For Our Customers 

Over

3m

customers

actively use My Singtel and My Optus 
apps to manage their Singtel and Optus 
services

+
26%

Together with our associates,  
our capital expenditure was more than

S$12b

Our associates now have more than

279m

mobile data users, a

26% 

increase from last year

We increased our coverage for secured high-speed 
data connectivity from

325

cities to

362

globally

For Our Investors

We paid 

S$3,346m 
S$390m 

in interest

in dividends and

5-year Total Shareholder Return (TSR) 

Singtel

3.4%

MSCI Asia Pacific 
Telecommunications Index

Straits Times Index

6.4%

4.1%

15

Accolades

#1 in Singapore Governance and 
Transparency Index 2017

#1 in ASEAN Corporate Governance 
Scorecard 2018 for Singapore

Special Recognition Award for Board 
Diversity at Singapore Corporate 
Awards 2017

Source: Bloomberg, 2013 - 2018For Our People

We have supported more than

280

students 

through our internship and scholarship 
programmes

For Our Communities

We invested

S$31m

in learning and development to train staff in Singapore 
and Australia and our staff clocked a total of

627,000 training hours

More than

5,600 

SMEs participated in the 99%SME 
Shopping Week 2017 to rally 
Singapore consumers to buy SME 
products and services, a

100%

increase from 2016

We contributed 

S$17m

to the community, and spent 

27,628 

hours in staff volunteering  

Our digital citizenship 
programmes taught digital literacy 
to over

430,000

students in Singapore and Australia

We were the

first

company in Asia (ex-Japan) to 
commit and have carbon reduction 
targets approved by Science 
Based Targets initiative

ReCYCLE, our e-waste recycling  
programme with SingPost, collected

9,677kg 

(net weight)

of e-waste since its launch in 
Singapore in June 2017,

250% 

more than in previous years. 

To encourage social innovation, 
Singtel Group Future Makers supported

start-ups from Australia, Singapore  
and the Philippines with over 

19
S$500,000

in cash grants

16

Singapore Telecommunications Limited  |  Annual Report 2018SIMON  
ISRAEL

•   Non-executive and non-independent Director
•   Chairman, Singtel Board
•   Chairman, Finance and Investment Committee
•   Member, Corporate Governance and Nominations Committee
•   Member, Executive Resource and Compensation Committee
•   Member, Optus Advisory Committee
•   Date of appointment: Director on 4 July 2003 and Chairman  

on 29 July 2011

•   Last re-elected: 29 July 2016
•   Number of directorships in listed companies (including Singtel): 3

Mr Simon Israel, 65, is the Chairman of Singapore Post  
Limited and a Director of Fonterra Co-operative Group 
Limited and Stewardship Asia Centre CLG Limited.  
He is also a member of the Governing Board of Lee Kuan 
Yew School of Public Policy and Westpac’s Asia Advisory 
Board. Simon is a former Director of CapitaLand Limited  
and Stewardship Asia Centre Pte. Ltd. 

Simon was an Executive Director and President of  
Temasek Holdings (Private) Limited before retiring  
on 1 July 2011. Prior to that, he was Chairman, Asia Pacific 
of the Danone Group. Simon also held various positions 
in Sara Lee Corporation before becoming President 
(Household & Personal Care), Asia Pacific. 

Simon was conferred Knight in the Legion of Honour  
by the French government in 2007 and awarded the  
Public Service Medal at the Singapore National Day  
Awards 2011. He holds a Diploma in Business Studies  
from The University of the South Pacific.

17

Board of DirectorsCHUA 
SOCK KOONG

•  Executive and non-independent Director
•  Member, Optus Advisory Committee
•  Date of appointment: Director on 12 October 2006 and Group Chief  

Executive Officer (CEO) on 1 April 2007

•  Last re-elected: 28 July 2017
•  Number of directorships in listed companies (including Singtel): 2

Ms Chua Sock Koong, 60, was appointed Group CEO  
on 1 April 2007. She has overall responsibility for the 
Group’s businesses.

Sock Koong joined Singtel in June 1989 as Treasurer 
before becoming Chief Financial Officer (CFO) in April 
1999. She held the positions of Group CFO and CEO, 
International from February 2006 to 12 October 2006, 
when she was appointed Deputy Group CEO. 

Sock Koong sits on the boards of Bharti Airtel Limited, 
Bharti Telecom Limited, the Defence Science and 
Technology Agency, Cap Vista Pte Ltd and key 
subsidiaries of the Singtel Group. She is also a member 
of the Indonesia-Singapore Business Council, the Public 
Service Commission, the Research, Innovation and 
Enterprise Council and the Singapore Management 
University Board of Trustees.

Sock Koong holds a Bachelor of Accountancy (First Class  
Honours) from the University of Singapore. She is a  
Fellow Member of the Institute of Singapore Chartered 
Accountants and a CFA charterholder.

18

Singapore Telecommunications Limited  |  Annual Report 2018GAUTAM 
BANERJEE

•  Non-executive and independent Director
•  Member, Audit Committee
•  Member, Risk Committee
•  Date of appointment: 1 March 2018
•  Number of directorships in listed companies (including Singtel): 4

Mr Gautam Banerjee, 63, is Senior Managing Director 
of Blackstone Group and Chairman of Blackstone 
Singapore Pte Ltd. Mr Banerjee spent over 30 years with 
PricewaterhouseCoopers (PwC) in various leadership 
roles in Singapore, India and East Asia. He was a Senior 
Partner and Executive Chairman of PwC Singapore until 
he retired on 31 December 2012.

Gautam sits on the boards of Singapore Airlines Limited,  
Piramal Enterprises Limited, The Indian Hotels Company  
Limited, GIC Private Limited and EDBI Pte Ltd. He also 
serves in several not-for-profit organisations including 
Singapore Business Federation, Listings Advisory 
Committee of the Singapore Exchange, Singapore Legal 
Service Commission and Yale-NUS College.  

Gautam holds a Bachelor of Science (Honours) and an 
Honorary Doctor of Laws (LLD) from Warwick University. 
He is a fellow member of the Institute of Chartered 
Accountants in England and Wales, the Institute of 
Singapore Chartered Accountants and the Singapore 
Institute of Directors.

Gautam was a Nominated Member of Parliament in 
Singapore from 2007 to 2009.  He was awarded the 
Public Service Medal by the Singapore government  
in 2014.

19

Board of DirectorsBOBBY 
CHIN

•  Non-executive and independent Director
•  Chairman, Audit Committee
•  Member, Risk Committee
•  Date of appointment: 1 May 2012
•  Last re-elected: 21 July 2015
•  Number of directorships in listed companies (including Singtel): 4

Mr Bobby Chin, 66, is a member of the Council of 
Presidential Advisers and Chairman of the Housing  
& Development Board, NTUC Fairprice Co-operative 
Limited and NTUC Fairprice Foundation Ltd. He is the 
Deputy Chairman of NTUC Enterprise Co-operative 
Limited. He serves on the boards of the Singapore Labour 
Foundation and Temasek Holdings (Private) Limited.  
He is Chairman of Frasers Commercial Asset Management 
Ltd and also a Director of several listed companies, namely 
Yeo Hiap Seng Limited, Ho Bee Land Limited and AV 
Jennings Limited. 

Bobby was the Managing Partner of KPMG Singapore  
from 1992 until his retirement in September 2005.  
He was a Director of SembCorp Industries Ltd.

Bobby holds a Bachelor of Accountancy from the 
University of Singapore. He is an associate member  
of the Institute of Chartered Accountants in England  
and Wales.

Note: 
Bobby was appointed to the Board of Temasek Holdings (Private) Limited 
(Temasek), the major shareholder of Singtel, on 10 June 2014. After due 
consideration, Bobby continues to be regarded as independent as he does not 
represent Temasek on the Singtel Board and he is not accustomed or under an 
obligation, whether formal or informal, to act in accordance with the directions, 
instructions or wishes of Temasek. As Bobby has demonstrated independence  
in character and judgement in the discharge of his responsibilities, the Singtel 
Board is satisfied that he will continue to exercise independent judgement and 
act in the best interests of Singtel and its security holders generally.

20

Singapore Telecommunications Limited  |  Annual Report 2018VENKY 
GANESAN

•  Non-executive and independent Director
•  Chairman, Technology Advisory Panel
•  Member, Finance and Investment Committee
•  Date of appointment: 2 February 2015
•  Last re-elected: 21 July 2015
•  Number of directorships in listed companies (including Singtel): 1

Mr Venkataraman (Venky) Ganesan, 44, is one of the  
Managing Partners of Menlo Ventures, a 42-year-old  
top-tier Silicon Valley venture capital firm. He focuses  
on investments in the consumer and enterprise sectors.  
Venky sits on the boards of several portfolio companies  
of Menlo Ventures, namely Avi Networks, Inc., BitSight 
Technologies, Inc, Breather Products Inc., Dedrone Inc., 
Machine Zone, Inc., MealPal, Inc., OverOps Inc. (formerly  
known as Takipi, Inc.), Rover, Inc., Unravel Inc., UpCounsel  
Inc. and Waterline Data Science, Inc. He is also a Board  
member of Amobee, Inc., a wholly-owned subsidiary  
of Singtel. 

Prior to joining Menlo Ventures, Venky was Managing  
Director at Globespan Capital Partners. Before 
Globespan, he was one of the founders of Trigo 
Technologies. He also worked at McKinsey & Company 
and Microsoft as a Program Manager. He is the former 
Chairman of the National Venture Capital Association 
and a former Director of Gild, Inc., Handle, Inc., Palo Alto 
Networks Inc and Virident Systems (acquired by Western 
Digital Corporation).

Venky holds a Bachelor of Arts in Economics-Mathematics  
from Reed College and a Bachelor of Science in  
Engineering and Applied Science (Honours) from the  
California Institute of Technology in the US.

21

Board of DirectorsLOW 
CHECK KIAN

•  Non-executive and Lead Independent Director
•  Chairman, Corporate Governance and Nominations Committee
•  Member, Finance and Investment Committee
•  Date of appointment: Director on 9 May 2011 and Lead  

Independent Director on 21 July 2015

•  Last re-elected: 28 July 2017
•  Number of directorships in listed companies (including Singtel): 2

Mr Low Check Kian, 59, is a Director of Cluny Park 
Capital. He was previously one of the founding partners 
of NewSmith Capital Partners LLP (NewSmith), an 
independent partnership providing corporate finance 
advice and investment management services with 
its headquarters based in London. Prior to founding 
NewSmith, he was a Senior Vice President and Member 
of the Executive Management Committee of Merrill Lynch 
& Co and its Chairman for the Asia Pacific region.

Check Kian also sits on the boards of Broadcom Limited, 
Singtel Innov8 Pte. Ltd. and Singtel Innov8 Holdings Pte. 
Ltd., and is a trustee of the Singapore London School  
of Economics Trust and Nanyang Technological University. 
He was a Director of Neptune Orient Lines Limited and 
Fullerton Fund Management Company Ltd.

Check Kian holds a B. Sc (First Class Honours) and M. Sc 
in Economics from the London School of Economics. 

22

Singapore Telecommunications Limited  |  Annual Report 2018PETER  
(1)
MASON AM 

•  Non-executive and independent Director
•  Chairman, Executive Resource and Compensation Committee 
•  Chairman, Optus Advisory Committee
•  Date of appointment: 21 September 2010
•  Last re-elected: 29 July 2016
•  Number of directorships in listed companies (including Singtel): 2

Mr Peter Mason, 71, is Chairman of AusNet Services 
Limited and a Senior Advisor to UBS Australia. He is the 
Chairman of the Centre for Independent Studies.

Peter has more than 40 years’ experience in investment 
banking, including JP Morgan and Schroders. He has 
been Chairman and a Director of a number of Australian 
companies.

Peter is a Member of the Order of Australia. He holds  
a Bachelor of Commerce (First Class Honours), an MBA 
and an Honorary Doctorate from The University of New 
South Wales, Australia.

Note: 
(1)     Member of the Order of Australia.

23

Board of Directors 
CHRISTINA 
ONG

•  Non-executive and independent Director
•  Member, Audit Committee
•  Member, Corporate Governance and Nominations Committee
•  Date of appointment: 7 April 2014
•  Last re-elected: 29 July 2016
•  Number of directorships in listed companies (including Singtel): 4

Mrs Christina Ong, 66, is Co-Chairman and Senior Partner 
of Allen & Gledhill LLP as well as Co-Head of its Financial 
Services Department. She is a Director of Hongkong Land 
Holdings Limited, Oversea-Chinese Banking Corporation 
Limited, SIA Engineering Company Limited, Singapore 
Tourism Board, Trailblazer Foundation Ltd and Epimetheus 
Ltd. Christina is a member of the Catalist Advisory Panel 
and also a trustee of The Stephen A. Schwarzman 
Scholars Trust. She also sits on the boards of companies 
and entities which are owned by Allen & Gledhill LLP. 

Christina is a lawyer and she provides corporate and  
corporate regulatory and compliance advice, particularly 
to listed companies. Her areas of practice include banking 
and securities. 

Christina holds a Bachelor of Laws (Second Upper Class  
Honours) from the University of Singapore. She is 
a member of the Law Society of Singapore and the 
International Bar Association.

24

Singapore Telecommunications Limited  |  Annual Report 2018PETER  
ONG

•  Non-executive and non-independent Director
•  Member, Audit Committee
•  Member, Risk Committee
•  Date of appointment: 1 September 2010
•  Last re-elected: 28 July 2017
•  Number of directorships in listed companies (including Singtel): 1

Mr Peter Ong, 56, is Chairman of Enterprise Singapore 
and Senior Economic Advisor to the Ministry  
of Trade and Industry. He was formerly the Head of  
Singapore’s Civil Service and Permanent Secretary  
(Strategy) in the Prime Minister’s Office and also  
previously held the positions of Permanent Secretary  
in the Ministry of Finance, the National Security and  
Intelligence Co-ordination Secretariat, Ministry of Trade  
and Industry, Ministry of Transport and Ministry of  
Defence. Prior to that, he was an Executive Vice President  
of Temasek Holdings (Private) Limited.

Peter currently sits on the boards of the Monetary  
Authority of Singapore and Lee Kuan Yew Exchange  
Fellowship. He is also a Senior Fellow of the Civil Service 
College. He was previously Chairman of the Inland  
Revenue Authority of Singapore and a Director of the  
ASEAN+3 Macroeconomic Research Office and the  
National Research Foundation.

Peter was conferred the Meritorious Service Medal (Pingat 
Jasa Gemilang) at the Singapore National Day Awards 
2010. He was also conferred the (Honorary) Knight of the 
Most Distinguished Order of the Crown by the Yang di-
Pertuan Agong Malaysia XIV in June 2012 (with the title  
of “Tan Sri”).

Peter holds a Bachelor of Economics (Honours) from the  
University of Adelaide, Australia and an MBA from  
Stanford University, US.

25

Board of DirectorsTEO 
SWEE LIAN

•  Non-executive and independent Director
•  Chairman, Risk Committee
•  Member, Corporate Governance and Nominations Committee
•  Member, Executive Resource and Compensation Committee
•  Date of appointment: 13 April 2015
•  Last re-elected: 21 July 2015
•  Number of directorships in listed companies (including Singtel): 2

Ms Teo Swee Lian, 58, is a non-executive and 
independent Director of AIA Group Ltd and Avanda 
Investment Management Pte Ltd. Swee Lian is also a 
member of the Board of Directors of Dubai Financial 
Services Authority, United Arab Emirates, a member of 
the Governing Board of the Duke-NUS Medical School 
in Singapore, a member of the Corporate Governance 
Council formed by the Monetary Authority of Singapore 
(MAS) and a council member of the Asian Bureau of 
Finance & Economic Research of National University  
of Singapore Business School.

Swee Lian was Special Advisor in the Managing Director’s 
Office at the MAS until she stepped down in early June 
2015. Prior to that, she was the Deputy Managing Director 
in charge of Financial Supervision at the MAS, where she 
oversaw macroeconomic surveillance, regulation and 
supervision of the banking, insurance and capital markets 
industries in Singapore. During her time with MAS, she 
also worked in reserves management, development, 
external relations and strategic planning. Swee Lian was 
also a member of the Singapore Exchange Diversity 
Action Committee.

Swee Lian was awarded the Public Administration Medal 
(Gold) (Bar) at the Singapore National Day Awards 2012. 
She holds a B. Sc (First Class Honours) in Mathematics 
from Imperial College, London University and a M. Sc in 
Applied Statistics from Oxford University.

Note: 
Information as at 16 May 2018.

26

Singapore Telecommunications Limited  |  Annual Report 2018GROUP CHIEF  
EXECUTIVE OFFICER

Chua Sock Koong

GROUP  
BUSINESSES

CHIEF EXECUTIVE OFFICER
CONSUMER AUSTRALIA /
CHIEF EXECUTIVE OFFICER OPTUS

Allen Lew

CHIEF EXECUTIVE OFFICER
CONSUMER SINGAPORE

Yuen Kuan Moon

CHIEF EXECUTIVE OFFICER  
GROUP ENTERPRISE / COUNTRY  
CHIEF OFFICER SINGAPORE 

Bill Chang

CHIEF EXECUTIVE OFFICER
GROUP DIGITAL LIFE

Samba Natarajan

CHIEF EXECUTIVE OFFICER
INTERNATIONAL 

Arthur Lang

27

CORPORATE  
FUNCTIONS

AUDIT COMMITTEE 

GROUP CHIEF  
INTERNAL AUDITOR 

Craig Young

GROUP CHIEF  
CORPORATE OFFICER  

Jeann Low

GROUP CHIEF  
FINANCIAL OFFICER

Lim Cheng Cheng

GROUP CHIEF HUMAN  
RESOURCES OFFICER 

Aileen Tan

GROUP CHIEF  
INFORMATION OFFICER 

William Woo

GROUP CHIEF  
TECHNOLOGY OFFICER

Mark Chong

Organisation StructureManagement Committee

CHUA SOCK KOONG

Ms Chua Sock Koong, 60, was appointed Group CEO on 1 April 2007.  
She has overall responsibility for the Group’s businesses. 

Sock Koong joined Singtel in June 1989 as Treasurer before becoming Chief 
Financial Officer (CFO) in April 1999. She held the positions of Group CFO 
and CEO, International from February 2006 to 12 October 2006, when she 
was appointed Deputy Group CEO. 

Sock Koong sits on the boards of Bharti Airtel Limited, Bharti Telecom 
Limited, the Defence Science and Technology Agency, Cap Vista Pte Ltd  
and key subsidiaries of the Singtel Group. She is also a member of the 
Indonesia-Singapore Business Council, the Public Service Commission, 
the Research, Innovation and Enterprise Council and the Singapore 
Management University Board of Trustees.

Sock Koong holds a Bachelor of Accountancy (First Class Honours) from the 
University of Singapore. She is a Fellow Member of the Institute of Singapore 
Chartered Accountants and a CFA charterholder.

BILL CHANG

Mr Bill Chang, 51, was appointed Chief Executive Officer, Group Enterprise 
on 16 July 2012. He leads the team that provides infocomm and technology 
(ICT) solutions to enterprise customers. He also assumed the role of Country 
Chief Officer Singapore on 1 October 2014, and is the principal liaison with 
local and regulatory bodies.

Bill joined Singtel on 15 November 2005 as Executive Vice President of 
Corporate Business and later assumed the role of Managing Director, 
Business Group.

Bill is the Chairman of the Singapore Polytechnic Board of Governors. He 
also co-chaired the Future Jobs and Skills sub-committee of the Committee 
on the Future Economy of Singapore. For his contributions to the education 
sector, he was awarded the Public Service Star in conjunction with the 
National Day Honours in 2017. He was conferred the Singapore Computer 
Society’s IT Leader of the Year award in 2017 and the honorary Fellow of the 
society in 2014 for his contributions to Singapore’s IT industry. In 2018, he 
was appointed a member of the Australian Institute of Company Directors’ 
International Advisory Technology Governance and Innovations Panel and to 
the Board of the Urban Redevelopment Authority of Singapore.

Bill graduated with a Bachelor of Engineering (Honours) in Electrical and 
Computer Systems Engineering from Monash University, Australia.

28

Singapore Telecommunications Limited  |  Annual Report 2018MARK CHONG

Mr Mark Chong, 54, was appointed Group Chief Technology Officer on  
1 April 2017. He leads the Group’s technology strategy and innovations in 
the transformation of its networks and businesses across Singapore and 
Australia. Prior to his appointment, Mark was CEO, International from  
January 2013 to March 2017. 

Mark joined Singtel in 1997 and has held various executive positions in 
the company including the roles of EVP (Networks) in Singapore and Chief 
Operating Officer of Advanced Info Service Public Company Limited (AIS), 
Singtel’s associate in Thailand.

Mark has represented Singtel on the Boards of public listed companies 
such as Globe Telecom, Bharti Infratel, CS Loxinfo PCL and other non-
listed companies such as OpenNet. He is currently the Chairman of Bridge 
Mobile Alliance and an Authority member of the Civil Aviation Authority of 
Singapore. 

He graduated with a Bachelor of Electronics Engineering and Master in 
Research in Electronic Systems from ENSERG, Grenoble, France, on a 
Singapore Government scholarship. Mark obtained his MBA from the 
National University of Singapore. He is a senior fellow with the Singapore 
Computer Society.

ARTHUR LANG

Mr Arthur Lang, 46, joined Singtel on 9 January 2017, as Chief Executive 
Officer, International (Designate) and became Chief Executive Officer, 
International on 1 April 2017. His main responsibilities are to oversee the 
growth of the Group’s regional associates across India, Indonesia, the 
Philippines and Thailand, strengthen its relationship with overseas partners, 
and drive regional initiatives, such as the regional payments platform and 
gaming business, for scale and synergies. 

Prior to joining Singtel, Arthur was Group Chief Financial Officer of 
CapitaLand Limited, where he directly oversaw the functions of treasury, 
financial reporting and controls, risk management, strategic projects, tax, 
investor relations and private equity fund management. As Group CFO 
of CapitaLand, Arthur received the Best CFO of the Year Award for listed 
companies with market capitalisation of S$1 billion and above at the 
Singapore Corporate Awards 2015.

Prior to CapitaLand, Arthur was at Morgan Stanley where he was co-head 
of the Southeast Asia investment banking division and prior to that, Chief 
Operating Officer of the Asia Pacific investment banking division.

Arthur is a board member of Globe Telecom, Bharti Infratel Limited, NetLink 
NBN Trust, the Land Transport Authority of Singapore, the National Kidney 
Foundation and the Straits Times Pocket Money Fund.

Arthur holds an MBA from Harvard Business School and a Bachelor of Arts  
in Economics (magna cum laude) from Harvard University.

29

Management CommitteeALLEN LEW

Mr Allen Lew, 63, was appointed Chief Executive Officer, Consumer Australia 
and Chief Executive Officer, Optus on 1 October 2014.

Prior to that, Allen was CEO, Group Digital Life and also Country Chief Officer 
Singapore.

Allen began his career with Singtel on 7 November 1980 and has served in 
various senior management roles both in Singapore and overseas. His first 
overseas posting was to Advanced Info Service Public Company Limited 
(AIS), Singtel’s regional associate. He was the Chief Operating Officer of 
AIS for three years before his posting to Optus in late 2001, as Managing 
Director of Optus Mobile and later as Managing Director of Optus Consumer 
Business. He returned to Singapore as CEO Singapore in 2006.

Allen is the Chairman of the AIS Executive Committee.

He holds a Bachelor of Electrical Engineering from the University of Western 
Australia under a Colombo Plan Scholarship and a Master of Science 
(Management) from the Massachusetts Institute of Technology, US.

LIM CHENG CHENG

Ms Lim Cheng Cheng, 46, is Group Chief Financial Officer. She assumed 
this role on 10 April 2015 and is responsible for the Singtel Group’s finance-
related functions including tax, treasury and investor relations.

Cheng Cheng has over 23 years of experience in finance and mergers and 
acquisitions. She joined Singtel in 2012 as Vice President, Group Strategic 
Investment and was appointed Deputy GCFO on 1 October 2014. Prior to 
that, she was Managing Director, Group Strategic Investments.

Before joining Singtel, Cheng Cheng was Executive Vice President and CFO 
at SMRT Corporation. She also worked at Singapore Power for 10 years in 
various corporate planning, investments and finance roles, the last of which 
was Head and Vice President (Financial Planning and Analysis). She started 
her career with PricewaterhouseCoopers.

Cheng Cheng was appointed as a non-executive, non-independent director 
at SingPost on 1 April 2017.

Cheng Cheng holds an MBA from the University of Chicago Booth School 
of Business and a Bachelor of Accountancy from Nanyang Technological 
University. She is a Chartered Accountant (Singapore) of the Institute of 
Singapore Chartered Accountants.

30

Singapore Telecommunications Limited  |  Annual Report 2018JEANN LOW

Ms Jeann Low, 57, was appointed Group Chief Corporate Officer on  
10 April 2015. She is responsible for the Group’s corporate functions 
including strategy, mergers and acquisitions, corporate communications, 
legal, regulatory and procurement.

Prior to this role, she was Group Chief Financial Officer for seven years. 

Jeann joined Singtel on 12 October 1998 as Group Financial Controller and 
has held several management roles including Executive Vice President of 
Strategic Investments and CFO of Optus.

Jeann is a board member of the Governing Board of the Lee Kong Chian 
School of Medicine. She is also a Director of Advanced Info Service Public 
Company Limited (AIS) and Intouch Holdings Public Company Limited.

Jeann holds an Honours Degree in Accountancy from the National 
University of Singapore and is a Fellow Member of the Institute of Singapore 
Chartered Accountants.

SAMBA NATARAJAN

Mr Samba Natarajan, 52, is Chief Executive Officer, Group Digital Life. 
He joined Singtel in May 2014 as Managing Director of Digital Enterprise, 
leading a team focused on identifying and executing on growth 
opportunities from emerging technology trends.

Samba has more than 25 years of corporate and consulting experience 
across a wide range of senior roles in the areas of strategy, business 
development and finance. He worked for Citibank from 1988 to 1997 and 
McKinsey & Company from 1999 to 2014. In his last role at McKinsey, he 
was the Leader of Southeast Asia Technology, Media & Telecommunications 
practice.

Samba serves on the Board of Directors of Globe Telecom in the Philippines. 
He is also a member of the Board of the Singapore American School.

Samba holds a Bachelor of Engineering degree in Electrical Engineering  
with distinction from the Birla Institute of Technology and Science in Pilani, 
India; a Post Graduate Diploma in Management from the Indian Institute  
of Management in Ahmedabad, India, and an MBA from the Wharton School, 
University of Pennsylvania, USA where he was a Ford Fellow and a Palmer 
Scholar.

31

Management Committee 
AILEEN TAN

Ms Aileen Tan, 51, Group Chief Human Resources Officer, is responsible for 
the development of human resources across the Singtel Group. She also 
leads its corporate sustainability function.

Aileen joined Singtel on 2 June 2008 as Group Director, Human Resources. 
Prior to that, she was Group General Manager, Human Resources at WBL 
Corporation Limited and Vice President, Centres of Excellence with Abacus 
International Pte Ltd. 

She co-chairs the Ministry of Manpower’s (MOM) HR Sectoral Tripartite 
Committee and is a member of MOM’s Workplace Safety & Health 2028 
Tripartite Strategy Committee and the Media Literacy Council. She is also 
a member of the Institute for Human Resource Professionals (IHRP) Board, 
Singapore University of Social Sciences Board of Trustees and the Home 
Nursing Foundation Board.

Aileen graduated with a Bachelor of Arts from the National University of 
Singapore. She also holds a Master of Science in Organisational Behaviour 
from the California School of Professional Psychology, Alliant International 
University, US. She is a pioneer IHRP Master Professional (IHRP-MP), 
conferred by the IHRP in recognition of her significant contributions to the 
HR community and for being a role model for the HR profession. 

WILLIAM WOO

Mr William Woo, 54, was appointed Group Chief Information Officer with 
effect from 1 August 2017. William was the Managing Director of Enterprise 
Data and Managed Services (EDMS) and Managing Director of Cyber 
Security at Group Enterprise. 

He joined Singtel in May 2011 from Xchanging PLC, where he was Managing 
Director for the Southeast Asia region. 

Prior to that, William spent 20 years at EDS and had held various senior 
management roles which included Managing Director of Southeast Asia 
& India and Vice President, Global Service Delivery of Asia, responsible 
for leading the Information Technology Outsourcing, Business Process 
Outsourcing and Applications service delivery across the Asia region.  
He started his career with the National Computer Board (NCB).

William graduated with a Bachelor of Applied Science in Computing 
(Distinction) from the Queensland University of Technology, Australia,  
and holds an Executive MBA from the National University of Singapore.

32

Singapore Telecommunications Limited  |  Annual Report 2018YUEN KUAN MOON

Mr Yuen Kuan Moon, 51, was appointed Chief Executive Officer, Consumer 
Singapore on 1 June 2012. He is responsible for leading the Singapore 
consumer business to deliver a complete and integrated suite of services, 
including mobile, broadband and TV solutions to consumers.

Moon began his career with Singtel on 1 February 1993 and has over 20 
years of experience in the consumer business, including Marketing, Business 
Development, Retail and Channel Sales. He has held several leadership 
roles, including Vice President of Regional Operations and Executive Vice 
President of Digital Consumer.

Earlier in his career, Moon was posted to PT Telekomunikasi Selular 
(Telkomsel), Singtel’s regional associate, as General Manager for Product 
Development in 2003 and was appointed Director of Commerce from 2005 
to 2007. He has served on the Board of Commissioners in Telkomsel since 
2009.

Moon was appointed to the Board of SkillsFuture Singapore on 3 October 
2016, as well as the Board of Advisors of the Institute of Service Excellence 
at SMU on 23 January 2018.

Moon graduated with a First Class Honours degree in Engineering from 
the University of Western Australia. He also holds a Master of Science in 
Management from Stanford University, US.

33

Management CommitteeCHIA WEE BOON
Chief Executive Officer
NCS, Group Enterprise

HUI WENG CHEONG
Chief Operating Officer
AIS

MURRAY KING
Chief Financial Officer
Optus

JOHN PAITARIDIS
Managing Director
Optus Business, Group Enterprise

KIM PERELL
Chief Executive Officer
Amobee, Group Digital Life

ARTHUR WONG
Chief Executive Officer
Global Cyber Security, Group Enterprise

34

Singapore Telecommunications Limited  |  Annual Report 2018Senior Management353535

Group 
Consumer

As digital becomes a way of life for most of us, 
we are investing in the solutions that will help 
you get the most out of today’s technology. 
This means delivering a range of exciting 
digital services from entertainment and mobile 
payments to smart living on any device, any 
time you desire.

To plug you into the digital world, we are 
building ever faster connections, and curating 
even more content options for you. And with 
more ways to engage with us digitally, it has 
never been easier for you to access  
our services.

Singapore Telecommunications Limited  |  Annual Report 2018
Singapore Telecommunications Limited Annual Report 2018

36
3636

Singapore Telecommunications Limited  |  Annual Report 2018 
In today’s mobile-led world, connecting people goes beyond providing data services. 
At Consumer Singapore, we are not just powering our customers’ lives with the 
island’s most reliable data connections, we are offering them the widest mobile data 
options at the most innovative pricing plans, plus a host of premium content so they 
can stay connected and be entertained like never before.  

INNOVATING MORE MOBILE  
DATA OPTIONS 
As customers increasingly use their 
mobile devices to communicate, 
shop and consume entertainment, 
we have come up with innovative 
solutions to satisfy increased 
demand for affordable data across 
prepaid and postpaid plans. This is 
why we have extended our range 
of mobile data options to include 
an unlimited data add-on. DATA 
X INFINITY, when paired with our 
upgraded Combo plans, offers a  

truly unlimited mobile experience  
with unlimited data, talktime and  
SMS/MMS. We are also giving 
customers the flexibility and 
convenience of customising their  
data experience both at home and 
away, enhancing our ReadyRoam 
plans to include 56 countries.

DIFFERENTIATING THROUGH 
NETWORK LEADERSHIP
Our superior network is key to the 
differentiated experience we offer.  
To ensure our customers continue  

37

to enjoy exceptional connectivity, we 
boosted our mobile network speeds 
up to 500Mbps to deliver Singapore’s 
fastest nationwide peak speeds.  
In addition, we remain unrivalled in 
topping the Info-communications 
Media Development Authority’s 4G 
quality of service standards for 13 
straight quarters since 2014.  

We continued to leverage our 
spectrum assets and harness 
advanced technologies to lead  
the industry. This included the 
delivery of a world-first with the 
introduction of our quad-band FDD/
TDD gigabit network which offers 
ultra-fast 1Gbps speeds at select 
high-traffic locations, providing 
customers an enhanced mobile  
data experience.

DELIVERING PREMIUM DIGITAL 
CONTENT, PRODUCTS AND 
SERVICES
From content to products and services, 
we offered up the very best to our 
customers with increasingly digital 
lifestyles. 

Singtel TV, Singtel TV GO and CAST 
customers had access to all 64 
matches of 2018 FIFA World Cup 
Russia™ in their homes and on the go, 
in full high definition. A stellar range  
of new content on Singtel TV and 
CAST was also introduced, headlined 
by the ultra-popular reality show, Sing 
China!. 

Additionally, customers had first dibs 
on the year’s most coveted devices 
with exclusive launches of gaming 
smartphone, Razer Phone and 
Google’s flagship, Google Pixel  

Group Consumer Singapore2 XL. Our network was also optimised 
to support Apple Watch Series 3 
(GPS+Cellular) with our NumberShare 
service, providing unprecedented on-
the-go connectivity to our customers.  

In the home, our customers’ fibre 
broadband experience was enriched 
with enhanced corner-to-corner WiFi 
coverage and smart home connectivity 
with Samsung Connect Home.

On the mobile wallet front, Singtel 
Dash extended its payment universe 
with the launch of the Dash Visa 
Virtual Account, enabling mobile 
payments at over 50,000 merchant 
points across the island and on 
e-commerce sites. We also stepped 
up to be the first to adopt SG QR, 
enhancing Singtel Dash’s features to 
deliver a ubiquitous mobile payments 
wallet for everyone and support the 
government’s goal of transforming 
Singapore into a cashless society.

ENHANCING CUSTOMER SERVICE 
THROUGH DIGITALISATION  
Superior customer service remains a 
key brand differentiator as we strive  
to make it easier and more convenient 
for customers to access our services, 
digitally or otherwise. For example,  
our customers can now get in touch 
with us at any time with a new 

centre personnel via video bots 
which enable conversations about 
any service query or issue such as 
billing and activation. 

Our customers have been highly 
receptive to our digital engagement 
efforts. Today, almost one million  
of them actively use My Singtel  
app and more than 20% prefer to 
make their purchases online.

‘Message Me’ feature on My Singtel 
app. Powered by our new and 
improved chat bot, Shirley 2.0, this 
chat service enables customers to 
send queries or request callbacks  
with a few taps on their smartphones.

For customers’ added convenience,  
we have also accelerated the  
integration of our online and offline 
platforms with the launch of the new 
Singtel Comcentre flagship store.  
The experiential store features for 
instance, an intelligent WiFi queueing 
system, integrated online and in-store 
shopping carts and instant purchases 
via automated checkouts. We have 
also brought the backroom call centre 
into our retail space, giving customers 
the option of interacting with call 

38

Singapore Telecommunications Limited  |  Annual Report 2018Keeping pace with our customers’ 
digital lifestyles

To address the rapidly evolving needs of our customers in the digital economy, 
Consumer Singapore has been re-inventing the way we do business. Consumer 
Singapore CEO Yuen Kuan Moon shares his digitalisation strategy fuelled by 
technology, capabilities and talent. 

How is Consumer Singapore 
progressing on its digital 
transformation journey?

a seamless customer service 
experience across both our online 
and offline channels. 

Moon: Our focus on customer 
service, along with our robust 
network and rich content, has been 
our principal differentiator and 
continues to set us apart from the 
competition. So when we started 
shifting gears, we focused the initial 
phase of our digital transformation 
on re-defining and enhancing our 
customer engagement. We’ve 
been making strategic investments 
in digital innovation to create 

We’ve set new benchmarks 
in customer service with the 
introduction of new online shopping 
features such as “Collect@Store” 
and creation of digital self-help 
options such as My Singtel app  
that allow customers to engage  
us at their convenience.

Most recently, we also took a  
bold step in our omni-channel  
journey with the launch of our new 

Singtel Comcentre flagship store, 
one of the most intelligent retail 
experiences in Asia. It integrates  
our online and in-store shopping  
carts to provide customers with a 
consistent and personalised buying 
experience, provides a smart WiFi-
based queue system, automated 
checkouts and video bots which  
can move around the store to assist 
customers.

Customers have responded 
positively, with almost 60% of our 
customers using our self-help 
platforms and more than 20% 

39

The CEO Conversation“Our next strategic focus is overhauling our internal operations 
  by transforming our processes digitally, optimising costs and 
  driving operational efficiencies. To achieve this, we will need 
  to further change the mindsets of our people.”

YUEN KUAN MOON 
CEO, CONSUMER SINGAPORE

preferring to make their purchases 
online. Given these encouraging 
results, we are doubling down on 
our digitalisation efforts.

Looks like you’re going full on 
digital. What’s the next phase of 
your agenda?

Moon: Our next strategic focus is 
overhauling our internal operations 
by transforming our processes 
digitally, optimising costs and 
driving operational efficiencies.  
To achieve this, we will need to 
further change the mindsets of our 
people. There is an urgent need  
to radically change the way we 
run our business, pushing past our 
comfort zone and unsubscribing to 
the adage: “If it’s not broken, don’t 
fix it.” This is the only way we can 
remain relevant in a fast-changing 
industry and deliver the experience 
that our customers have come to 
expect today.

To power ahead into the new 
economy, this transformation needs 
to be fuelled by the right people 
with the right capabilities.
We will create an environment 
and provide resources to build an 
organisation that embraces the 
culture of continuous learning, from 
senior management to operational 
employees. We need to reskill our 
existing workforce to be equipped 
with new capabilities so that we 
can continue to lead and shape the 
evolving telco industry.

We will also endeavour to make 
Singtel an exciting digital company 

with the right people working in it. 
Only then, can we attract and  
retain the best talent available. 

How are you leveraging technology 
for this digital transformation? 

Moon: Technology will definitely 
play an essential role and provide 
the right tools in this digital 
transformation – we are embracing 
robotic process automation (RPA),  
AI and advanced data analytics.

We have started leveraging 
technologies such as RPA, a tool 
that can handle high volumes of 
repeatable, time-consuming and 
mundane tasks much faster than 
humans and around the clock.

of capital expenditure, as well as 
predict capacity requirements. 

What kind of Consumer Singapore 
will we see in the future?

Moon: With our strategic investments 
in spectrum and advanced network 
technologies, customers can count 
on Singtel to continue delivering 
on service quality, reliability and 
innovation.

Beyond leveraging our assets and 
forging strategic partnerships to 
connect our customers with new and 
exciting digital lifestyle products and 
services, we are also committed to 
supporting the growth of IoT and 5G 
initiatives in the future.

We are also using emerging 
technologies to keep pace with  
our customers who are increasingly 
using multiple touch points to 
engage us and access our services. 

Internally, we are focused on 
transforming Consumer Singapore 
into a more agile entity so we can 
move faster, stronger and better. 

For example, we have introduced 
a ‘Message Me’ option on mobile 
phones that allows customers to 
reach us 24/7. We are putting  
AI behind our online chat bot, 
Shirley, to make it more intuitive  
and be the first line of response.  
We are using analytics to know  
our customer better so we can 
deliver personalised products  
and services that they truly value. 

Advanced analytics also plays  
a key role in helping us plan the 
best way to deploy new mobile 
base stations, optimise network  
efficiency and make best use 

We will also continue building a 
digitally savvy workforce empowered 
to create value for the organisation, 
our customers and the community. 

I am truly excited to lead a digital 
Singapore consumer business 
in a dynamic and ever-evolving 
marketplace.   

40

Singapore Telecommunications Limited  |  Annual Report 2018 
Optus continues to transition to a mobile-led, multimedia organisation that is transforming 
the way we connect our customers and deliver must-have entertainment and content 
experiences across a premium, national mobile network.

TRANSFORMING THE WAY OUR 
CUSTOMERS CONNECT
Digitalisation has become central  
to how we live our lives, so Optus  
is developing the digital offerings 
which allow customers to transform 
the way they connect – with us and 
with each other. 

We have evolved the My Optus app 
which supports customers to digitally 
manage everything from billing and 
data usage, to bill payments and live 
chat. Our customers can get closer  
to our exclusive Premier League 
sports action through the Optus 
Sport app, while our recently 
introduced Optus Stadium app 
delivers the ultimate in game day 
experiences for our customers  
when at Perth’s landmark Optus 
Stadium.

Optus launched a world-exclusive 
app in partnership with National 
Geographic, that delivers 129 years  

of amazing storytelling directly to  
our customers.

In Sydney, Optus unveiled our 
flagship store underpinned by a 4.5G 
technology experience demonstrating 
how smart technology can simplify 
everyday tasks. Visitors can touch, 
feel and try the latest technology, 
including new smart home devices, 
smartphones and wearables.

For customers needing extra support 
to run their busy lives, we launched 
Optus Assistant, an AI initiative that 
provides customers with voice- 
activated in-call support through 
Google Assistant and other platforms. 

CREATING A STRONG, AUSTRALIA-
WIDE NETWORK
In July 2017, Optus announced a  
A$1 billion investment to improve 
and expand mobile coverage in rural 
and regional Australia by the end 
of June 2018. The largest regional 

capital expenditure programme in 
our 25-year history, our investment 
commitment affirms our focus on  
delivering comparable mobile  
network experience and coverage  
for customers, whether they live and 
work in the cities, regions or rural 
Australia. 

We are thrilled that our mobile 
network was ranked Best in Test  
in the 2017 P3 connect Mobile 
Benchmark Australian test. P3 is 
the international leader in mobile 
network testing. 

With more and more connected 
devices in the home, office and 
community, Optus is building a 
network of the future that supports 
digital engagement, faster speeds 
and improved latency. 

Our 3500MHz spectrum ensures  
we are 5G-ready – and ahead of  
the competition.

41

Group Consumer AustraliaWe have achieved milestones for  
our delivery of 5G technology 
including a world-first live network 
test that combined Massive MIMO 
and 3CC Carrier Aggregation, and  
a well-received outdoor trial for 5G  
New Radio.

These successes have made us 
confident in our ability to deliver 5G  
in Australia, with our intention to  
begin the roll out of 5G in Australia’s 
key metropolitan areas by early 2019. 

DELIVERING GAME-CHANGING 
CONTENT
Australia is a sport-loving nation,  
so it is no surprise that sport  
played a key theme for Optus 
in 2018. As the technology partner  
for the Gold Coast 2018 
Commonwealth Games, we built 
the high-speed telecommunications 

infrastructure for more than 30 
locations, including 17 Games 
venues across Gold Coast, Brisbane, 
Townsville and Cairns. 

Our customers enjoyed compelling 
content exclusive to Optus, such  
as Premier League and Cricket.  
They also enjoyed data-free 
streaming of the Australian Open 
tennis and the 2018 Winter Olympic 
Games.

Our National Geographic app which 
brings engaging video, images  
and stories to mobile devices and  
tablets has been popular with 
customers.

SUPPORTING THE BACKBONE  
OF THE AUSTRALIAN ECONOMY
Small businesses are important  
to Optus, and the Australian 

economy, hence the SMB segment 
remains a focus for Optus.

We have nearly doubled our SMB 
footprint nationally through new  
Optus Business Centres, and 
introduced over 120 business 
specialists in our retail stores, 
supported by a dedicated SMB call 
centre team, premium on-boarding 
and business service support. 

Our commitment is supported  
by new products including Yes 
Business, an online platform which 
allows SMBs and industry experts  
to exchange tips, advice and  
solutions on a wide range of  
business topics; and Optus Loop,  
a cloud-based system that provides  
a hybrid mobile and fixed line 
telephony service which challenges 
the traditional PABX.

42

Singapore Telecommunications Limited  |  Annual Report 2018Changing tomorrow’s 
telecommunications  
experience today 

Telecommunications continues to evolve at breakneck speed as technology, content 
and innovation drive consumer engagement and experience. Optus CEO Allen Lew 
discusses the advantages and opportunities for Optus in the near future.

This year we have started to see  
big steps towards 5G. What can  
we expect in the near future?

Allen: The first phase of 5G 
deployment is coming much  
sooner than many people think.  
It will combine 5G network 
capabilities with fixed wireless 
services to completely disrupt  
the market and redefine the role  
a wireless service can deliver.

Shortly after global 5G 
standardisation was officially  

43

drafted in December 2017,  
Optus was able to achieve  
2Gbps data throughput using a 
prototype home product almost 
ready for market. By early 2019,  
we will begin rollout of this first  
phase of 5G and continue  
to lead the development of 5G  
in Australia. All this is thanks to  
an excellent team of people driving 
innovation, strong momentum  
in the market, and a unique set  
of technologies and spectrum  
that makes Optus ready for 5G 
deployment.

The second phase of 5G, which  
will focus on mobility and mass 
machine connectivity delivered  
over 5G in a range of consumer 
devices is further off, but it’s 
something we’re preparing for. 

With a positive year of momentum, 
what factors have led to a strong 
performance, and how do you 
maintain that momentum? 

Allen: Our consistent goal has 
been to build Optus into a digital 
organisation that delivers  

The CEO Conversation“Our overarching goal remains unchanged since we entered 
the Australian market 25 years ago, to excite customers by 
disrupting the status quo, deliver customer service that 
focuses on ‘yes’, and offer greater competition, choice and 
value to Australians.”

ALLEN LEW 
CEO, OPTUS

converged fixed, mobile and video 
services. Underpinning this has 
been our drive to transform the 
Optus network and deliver greater 
competition, choice and value to 
Australians. This year we executed 
on this strategy. 

Last year, I said that good content 
and an advanced network with 
technology that is designed and  
built for the unique needs of video 
were essential pillars for our success. 

That success was realised when  
our network was named ‘Best in  
Test’ in the P3 connect 2017 
Australian benchmark following 
continued network investment, 
expansion and densification. This 
has meant our investment in ground-
breaking partnerships, to excite 
customers with game-changing 
content and experiences has been 
able to reach more customers,  
more frequently. 

With all this momentum behind us, 
we’re shifting focus to take the lead 
in the Australian market – a goal 
that the whole business is working 
towards. It’s starting with phase one 
of 5G but it certainly won’t stop there. 

Innovation remains a cornerstone 
for success in the digital age. What  
Optus innovations have been 
outstanding successes?  

Allen: As a challenger brand 
operating within a sophisticated 

market like Australia, innovation is 
inherently instilled in our operations. 

Arguably the most important example 
of this is how we interact with our 
customers. Innovation in this area, 
through automation, research and 
development and big data analytics 
enables Optus to make unparalleled 
improvements to customer 
interactions. These interactions  
have been underpinned by our 
strong compliance culture, trust  
and protection of our customers 
privacy and data.

Innovation allows us to integrate 
robotic process automation into 
processing customer orders for 
greater accuracy and faster delivery. 
It allows us to connect with data  
and trends to produce and tailor 
impactful customer communications, 
and even content offerings –  
from billboard advertising through 
to handset promotions, or our 
partnership with the Premier League. 

What is most exciting about this 
is that many of the technologies 
we’re working with are still new 
and developing. As technologies 
continue to advance, we will be able 
to further integrate them into our 
operations, providing customers  
with a better experience.

You have continued to focus  
on transforming Optus to 
be a mobile-led, multimedia 
entertainment business.  

With content so important, what  
can customers expect to see next  
from Optus? 

Allen: Pairing the positive  
reputation of Optus’ network  
with our promise of delivering  
game-changing entertainment  
has seen us significantly expand  
on our content offering, including  
our role in delivering this to 
audiences, both on a local and  
global scale.

This year, we partnered with the Gold 
Coast 2018 Commonwealth Games 
to deliver the technology backbone 
for the event. In addition to significant 
network technology upgrades,  
we designed and implemented the 
Games network, enabling connectivity 
for broadcasting, telephony, internet 
and cloud services across all Games 
venues and providing an opportunity  
to showcase our capabilities on a 
global platform.

We’ve also secured the exclusive  
rights in Australia to broadcast all  
64 matches from the 2018 FIFA World 
Cup™ live, expanding on our existing 
content offerings with the Premier 
League. Nonetheless, our overarching 
goal remains unchanged since we 
entered the Australian market 25  
years ago, to excite customers by 
disrupting the status quo, deliver 
customer service that focuses on  
‘yes’, and offer greater competition, 
choice and value to Australians. 

44

Singapore Telecommunications Limited  |  Annual Report 2018 
The proliferation of smartphones has seen data consumption surge across the markets  
of our regional associates in the past year. AIS and Airtel in particular, recorded jumps  
in data demand per user of 90% and 395% respectively. Little surprise, they have  
moved to enhance their digital products and services while making further investments 
in spectrum and networks to deliver better customer experiences. As a Group, we are 
pursuing a strategy to leverage our collective expertise and market base of more than 
650 million mobile customers to forge new areas of growth in the digital economy. 

ENHANCING SERVICES FOR 
CUSTOMERS AT HOME AND ON 
THE GO 
With appetites for mobile 
entertainment growing, our 
associates have expanded their 
suite of digital content through 
partnerships with local and  
global content providers.  
In India, Airtel partnered Hotstar, 
the country’s largest streaming 
platform, and Amazon Prime Video 
to enhance content offerings  
on the Airtel TV app. In Thailand,  
AIS added new content to offer 
over 100 channels on its AIS Play 
app, providing customers with 
more entertainment choices. In the 

Philippines, Globe expanded  
its range of Asian programmes  
with Viu, while Telkomsel in 
Indonesia introduced Catchplay, 
Nickelodeon and SuperSoccer. All 
our associates also offer HOOQ’s 
Hollywood and original local 
content.

In the home, our associates are  
driving the subscription of 
broadband solutions. Globe 
launched prepaid home  
broadband plans to reach more 
households in the Philippines.  
AIS Fibre expanded its coverage  
to reach 50 cities and 6 million 
households.

TRANSFORMING CUSTOMER 
SERVICE
As more customer interactions 
move online, our associates 
continued to make improvements  
to their respective flagship apps. 
Both Airtel and AIS unveiled 
enhanced versions of their apps 
which enable customers to receive 
notifications, perform DIY services, 
access privileges, as well as 
products and services previously 
available only in-store. Telkomsel 
introduced GraPARI Virtual,  
a self-care customer solution  
which combines artificial 
intelligence and analytics to  
deliver a faster and more precise 

Singtel and AIS executives and ASEAN heads of state at the preview of Singtel Group’s cross-border mobile payments service during the 32nd 
ASEAN Summit in Singapore.

45

Group Consumer Regional Associatescustomer experience on its digital 
channels.

DELIVERING FASTER SPEEDS
Our associates are investing in 
their networks and technology, 
particularly for mobile broadband 
coverage and capacity to meet the 
surge in data demand and deliver 
a fast, seamless entertainment 
experience. The performance of 
their mobile networks has been 
consistently ranked among the 
fastest in their respective countries 
by independent speed tests.  
In Thailand, AIS launched the 
NEXT G mobile network which is 
capable of internet speeds of up 
to 1Gbps while in the Philippines, 
Globe deployed MIMO technology 
to expand and enhance its LTE 
network.

FORGING CLOSER GROUP 
COLLABORATION 
A collaborative approach is critical 
to thriving in the fast-changing 
digital world without borders as 
our customers, especially the 
millennials, spend most of their time 
online, either consuming media or 
shopping. We are working closely, 
together with Optus, and our 
regional associates, leveraging our 
combined scale and capabilities to 
cooperate with strategic partners  
on a range of digital services that 
can be rolled out across the Group.

This past year has seen agreements 
with Mobike, Razer and ONE 
Championship to collaborate in 
areas such as e-payments, e-gaming 
and content which are some of our 
key consumer priorities. 

In a first for the region, we 
announced an initiative to connect 
the Group’s telco wallets across 
markets to offer seamless cross-
border payments at physical 
merchants. This will empower 

Singtel, ONE Championship, Globe and Telkomsel executives with Angela Lee, mixed martial arts 
champion, at the MOU signing event between Singtel and ONE Championship.

our customers to securely and 
conveniently pay with their mobile  
wallets when they travel in Asia  
Pacific while helping small 
merchants expand their reach  
to millions more in the process.  
ASEAN heads of state had a  
chance to experience how this 
payment service would work at 
the 32nd ASEAN Summit held in 
Singapore, ahead of the first phase 
commercial launch between  
Singtel and AIS. Other mobile 
payment apps and our Bridge 

Alliance of telco partners can 
potentially plug into the platform 
and gain ready access to our 
merchant and customer bases 
throughout the region.

This complements the Singtel  
Open Platform, a group-wide 
payment gateway, which already 
enables our customers to make  
purchases online using direct  
carrier billing or their respective 
telco mobile wallets.  

46

Singapore Telecommunications Limited  |  Annual Report 2018Hunting as a pack

The infocommunications industry is fast-moving and ever-changing. How is Singtel 
harnessing its regional reach to build an advantage? International Group CEO  
Arthur Lang shares his insights.

It has been a year since you  
became the CEO of the 
International Group. How have  
you found it, given that you come 
from a different background?

Arthur: There has never been a 
dull moment! The International 
Group works with our regional 
associates in Asia and Africa, high 
growth markets with large millennial 
populations whose digital lifestyles 
are driving explosive data traffic 
growth. It’s a region that is truly 
mobile-first in that the first ‘cinema’ 
experience of the younger set 
may well be via mobile streaming. 
And while many may not have 

credit cards or bank accounts, they 
definitely have a mobile subscription 
and increasingly, a mobile wallet. 

FY 2018 was a challenging year 
for Airtel which faced intense 
competition in India sparked by an 
aggressive new operator. While we 
expect pricing pressures in India 
to continue in the near term, we 
expect the resultant consolidation 
and more rational pricing to lead 
to a healthier, more stable market 
structure. We take a long-term view 
of our strategic investments in Airtel 
and our other associates. All of them 
are strong leaders in their respective 
markets and they’ve successfully 

differentiated themselves through 
continuous investments in networks 
and spectrum and innovation 
to deliver a better customer 
experience. This certainly puts 
each of our associates in a strong 
position to navigate competition 
and ride the digital wave even as 
capex intensity grows as we shift 
from 3G to 4G to 5G. 

Coming from a non-telco 
background, I believe I can bring  
a fresh perspective and new 
ideas to the role. With my finance 
background, I can balance 
commercial entrepreneurship  
with financial rigour.

47

The CEO Conversation“Our focus is to leverage this scale to build 
an ecosystem of digital services for our 
customers through strategic partnerships. 
Such partnerships can create a huge 
network effect. We want to engage with 
customers, increase customer touchpoints 
and mindshare.”

ARTHUR LANG 
CEO, INTERNATIONAL GROUP

The telco industry has seen 
disruptive changes in the last few 
years. How is Singtel continuing  
to lead the associates?

Arthur: I don’t see our role as 
“leading” our associates. We are 
partners and bring together the 
strength of the pack as we go out 
and hunt for opportunities. 

Today, our competition is not just 
traditional telcos, but digital players 
like OTTs too. So we have to up 
our game and play in that league 
as well. Our mindset has moved 
beyond local for many years now, 
especially since borders have 
eroded as the world’s gone digital. 

We’ve evolved from a telco to 
a communications technology 
company with the shift from voice  
to data. We continue to identify new 
ways to use our assets to develop 
new revenue streams, especially 
in the digital space where scale is 
critical to any company’s success. 
We certainly have that scale with 
our customer base of more than 
650 milllion across 21 countries. 

Our focus is to leverage this scale 
to build an ecosystem of digital 
services for our customers through 
strategic partnerships. Such 
partnerships can create a huge 

network effect. We want to engage 
with customers, increase customer 
touchpoints and mindshare. I’m 
keen to increase not just monthly 
active users but also daily active 
users.

What are some of the opportunities 
you see for the Group? 

Arthur: Digital services are a big 
part of our customers’ lives which is 
why we’ve identified opportunities 
in cross-border payments and 
content. All our associates, 
ourselves included, already offer 
mobile wallet services so we’re 
simply leveraging the strength of 
the pack through an interoperable 
platform to enable our customers 
to pay with their mobile wallets 
when they travel in Asia. It’s secure 
and convenient. We also want to 
connect with the millennials by 
engaging them with video and new 
forms of content such as esports, 
mixed martial arts and much more. 
Our recent collaborations with Razer 
and ONE Championship will help us 
to do just that. 

Tell us more about this cross-border 
payments initiative.

Arthur: There’s been a proliferation 
of mobile wallet services in Asia but 
these wallets don’t connect with 

one another across borders. We 
saw an opportunity to address this 
gap by connecting all the mobile 
wallet services of the Group. 

We’re linking Singapore and 
Thailand first in the third quarter 
of 2018. Then we’ll progressively 
connect the rest of our markets 
and potentially other telco and 
non-telco mobile payment apps 
including those of our Bridge 
Alliance partners and even non-
telco partners.

With intra-Asia travel on the rise, 
this will truly empower travellers 
of each country to transact safely 
and easily with their mobile wallets 
and help small local merchants 
widen their reach to millions more 
in the process. We believe this 
will unlock the growth potential of 
mobile payments in the region and 
support ASEAN’s vision of a more 
connected community.

You mentioned esports as another 
area of focus. How does Singtel 
view esports?

Arthur:  I’m a casual and occasional 
gamer but I’ve recently started 
watching esports. At first,  
I wondered why so many young 
people would watch someone else 
play a video game. But it isn’t too 
different from watching traditional 
sports like football or basketball 
with many intense moments of 
action that has drawn a similarly 
huge following worldwide.

That’s why such new forms of 
sports are a very natural next step 
for us. This is not just in terms of 
content, but also to grow a vibrant 
esports ecosystem and community 
in Southeast Asia which will help us 
excite and engage millennials even 
more. We’re gearing up for this in 
the next few months, so stay tuned!

48

Singapore Telecommunications Limited  |  Annual Report 2018Group 
Enterprise

Doing business digitally is no longer ‘good to 
have’ but a ‘must-have’. In a world where new 
technologies have levelled the playing field 
for even the smallest companies, going digital 
is key to staying ahead of the competition. 
Whether you’re moving your operations to 
the cloud, keeping your information safe, or 
gleaning insights from data to become more 
competitive, we have the solutions to help 
enterprises embark on their digital journey, 
just as we have.

494949

Singapore Telecommunications Limited  |  Annual Report 2018
Singapore Telecommunications Limited Annual Report 2018

50
5050

Singapore Telecommunications Limited  |  Annual Report 2018The digital revolution has totally upended the way companies do business, giving them 
more efficient means to run and scale their operations through the deployment of cloud, 
analytics, cyber security, IoT and smart city solutions. This has opened up a slew of new 
business opportunities for Group Enterprise, opportunities we have seized by leveraging 
our quality infrastructure which continues to form the backbone of our transformation, 
while rapidly developing our talent and building our capabilities in these new growth 
areas. Having embarked on our own digital transformation six years ago, Group 
Enterprise is now empowering other companies attempting similar transitions. 

BUILDING OUT CYBER SECURITY
Having identified cyber security as a 
new growth driver and set our sights 
on becoming a global leader in this 
space, we are accelerating the build 
out of the business by consolidating 
our cyber security assets into a single 
global business. This brings together 
10 advanced Security Operations 
Centres (SOCs) across Asia Pacific, 
Europe and the Americas as well as 
2,000 cyber security professionals. 
Through these combined resources 
and capabilities, Singtel is primed 
to deliver a portfolio of world-class 
enterprise solutions to help protect 
customers and support their evolving 
needs, in a climate where cyber risks 
are rising and becoming increasingly 
complex.

To further broaden the reach of our 
business, we recently formed the 

51

Global Telco Security Alliance  
with Telefónica, SoftBank and  
Etisalat to offer enterprises access 
to a wider portfolio of cyber security 
services in over 60 countries. 
Together, the alliance operates  
22 world-class SOCs and employs 
more than 6,000 cyber security 
experts. 

EMPOWERING DIGITAL 
TRANSFORMATION
Besides augmenting our cyber  
security capabilities, we have  
also undertaken several initiatives  
to help our customers accelerate 
their digital transformation. 

On the cloud front, we collaborated 
with VMware to set up our first Digital 
Transformation Foundry in Singapore. 
The foundry is designed as a ‘virtual 
sandbox’ for customers to conduct 

proof-of-concept experiments that 
will help bring their digital solutions 
to market more quickly. Similar 
foundries to be created in Australia 
and Hong Kong will initially focus  
on delivering a suite of cloud services  
to enable customers to modernise 
their data centres, integrate public 
and private clouds, transform 
information security and create  
digital workspaces of the future. 

Last December, we partnered with  
Singapore’s NTU and A*STAR 
to spearhead R&D in emerging 
technologies that will support the 
country's Smart Nation ambitions. 
The NTU partnership aims to  
pioneer breakthroughs in AI, 
advanced data analytics, robotics  
and smart computing applications, 
while that with A*STAR will focus  
on building automation systems, 

Group Enterprise robotics and industrial IoT 
applications.

To develop the IoT ecosystem in 
Singapore, Singtel and Ericsson 
recently established an innovation  
lab to facilitate IoT deployments.  
We also collaborated with Twilio,  
a leading cloud communications 
company, to develop a platform  
that makes IoT more accessible  
to software developers. During the 
IoT Asia conference in March, we 
showcased the IoT applications 
that we are developing for sectors 
such as manufacturing, healthcare, 
transportation, real estate and 
utilities.

BOLSTERING CONNECTIVITY
As we develop more innovative 
technologies to serve our customers, 
we are also upgrading our 
infrastructure to give them the robust 
connectivity they need to deploy 
their digital strategies. Singtel and 
the members of the Southeast Asia – 
Japan 2 undersea cable consortium 
recently announced the construction 

Singtel executives demonstrate the capabilities of Singtel’s IoT network to Dr Vivian Balakrishnan 
(centre), Singapore’s Minister for Foreign Affairs and Minister-in-charge of the Smart Nation 
initiative at IoT Asia 2018.

of a high-performance submarine 
cable that will connect Singapore to 
Southeast Asia and North Asia when 
completed in 2020.

The 10,500-kilometre submarine 
cable can carry 144 terabits of data 
per second, roughly the equivalent 
of simultaneously streaming 5.76 

million ultra-high definition videos 
per second. Together with the 
9,000-kilometre INDIGO submarine 
cable that will link Singapore to 
Australia when completed in 2019, 
these new cable facilities will allow 
us to meet the growing demand for 
bandwidth-intensive applications 
across Asia Pacific. 

52

Singapore Telecommunications Limited  |  Annual Report 2018Powering Singapore’s Smart  
Nation vision

As Singapore sets its sights on being a Smart Nation, Singtel is gearing up to be  
the trusted enabler of the country’s new digital economy. Group Enterprise CEO  
Bill Chang outlines Singtel’s vision. 

Digital transformation is the 
cornerstone of Singapore’s  
Smart Nation vision. What is  
Singtel doing to support 
Singapore’s digital initiatives? 

Bill: As Asia’s leading 
communications technology 
group, we are leveraging our 
core strengths and leadership 
in telecoms and information 
technology which will help serve 
as the digital backbone upon 
which our Smart Nation is built. 
As we continue to deepen our 

53

capabilities in new growth areas like 
cyber security, cloud, IoT, advanced 
analytics, AI and robotics, we will 
provide solutions and services from 
these digital technologies that will 
allow us to contribute even more 
meaningfully to Singapore’s digital 
transformation.

Singapore will need to develop 
the right talent pool if it is to fulfil 
its Smart Nation dreams and this 
is also a key area where Singtel is 
contributing. We have partnered 
with institutions of higher learning 

to develop curriculum in emerging 
fields such as cyber security, digital 
marketing and robotics for instance 
to help groom a digitally savvy 
workforce.

How do you see these new digital 
technologies operating in the 
Singapore of tomorrow?

Bill: These new technologies will 
transform the way we live, learn  
and work. In the realm of public 
services, Singaporeans can expect 
smart apps and digital services 

The CEO Conversation  
“As Asia’s leading communications technology group, we are 
leveraging our core strengths and leadership in telecoms and 
information technology which will help serve as the digital 
backbone upon which our Smart Nation is built.”

BILL CHANG 
CEO, GROUP ENTERPRISE

which will mean more ease of  
use for citizens and greater 
productivity and efficiencies for 
organisations. Digital payments  
will increasingly become a way  
of life for many, and this will rapidly 
transform the interactions between 
consumers and enterprises, 
allowing them to better serve their 
customers, drive productivity and 
scale their businesses regionally 
and globally.

In the transportation sector, we  
are in the midst of developing 
the next generation Electronic 
Road Pricing system for the Land 
Transport Authority (LTA). By using 
satellites, the LTA can manage  
traffic flow more flexibly by pricing 
road usage based on the distance 
travelled by motorists on busy 
roads, while providing commuters 
information to better plan their 
journeys.

How is Singtel contributing 
to Singapore’s Smart Nation 
development?

Bill: In the smart urban infrastructure 
area, we are using data from IoT 
sensors to help the Housing & 
Development Board (HDB) and  
the town councils monitor lifts  
and other common facilities to 
ensure continuous operations.  
This improves the management  
and maintenance of critical facilities 
at HDB heartlands. 

IoT will also be a critical lever for 
enterprises to transform themselves 
digitally and innovate in line with 
the government’s roadmap to bring 
industries into the new economy. 
Singtel is trialling a range of IoT 
applications for deployment 
across manufacturing, healthcare, 
transportation, real estate and 
utilities sectors. 

In the healthcare sector, we are 
deploying robotics technology in 
hospital pharmacies to help speed 
up the dispensing of medicines, 
reduce the wait times for patients 
and boost productivity of healthcare 
workers. 

A Smart Nation also needs to be 
digitally safe. What is Singtel doing 
to ensure enterprises are being 
protected?

Bill: The global impact of last year’s 
Wannacry and Petya malware 
incidents clearly demonstrate 
the cross-border nature of cyber 
threats. Enterprises with operations 
around the world cannot continue 
using standalone cyber defences 
to protect their local offices. They 
will need a global, 24/7 view of 
such fast-evolving threats to better 
protect themselves. Given our 
network of advanced SOCs across 
Asia, Australia and Europe and the 
Americas, we are well-positioned  
to provide close monitoring of  
cyber threats. In March, Gartner 

recognised our cyber security arm 
Trustwave in the Leaders' Quadrant 
for the Global Managed Security 
Services category. Coupled with 
the swift, coordinated responses 
to these global threats, we can 
strengthen companies’ defences 
around-the-clock. 

Additionally, we have bolstered 
our cyber defences through the 
newly-created Global Telco Security 
Alliance with Telefónica, SoftBank 
and Etisalat. The alliance will further 
enhance our global footprint  
with a combined reach of more  
than 1.2 billion customers in over  
60 countries. We are also 
developing deep information 
security capabilities for critical 
infrastructure in the transportation 
and utilities sectors.

Technology is constantly evolving. 
How does Singtel keep up with 
technological advancements?

Bill: We have intensified our 
innovation drive by forming strategic 
partnerships to make Singtel  
future-ready. Our partnerships, 
corporate labs and collaboration 
with NUS, NTU and A*STAR last  
year underscore our efforts to 
create intellectual property and 
speed up the development of 
innovative products and services 
that will help solve the real world 
challenges of many enterprises. 

54

Singapore Telecommunications Limited  |  Annual Report 2018Group 
Digital Life

Increasing digitisation, the behavioural 
changes and technology driving it, continues 
to weigh on businesses looking to find their 
feet in the new normal. Leveraging our 
growing digital capabilities, we help marketers 
better engage their audiences online, and 
companies marshal huge volumes of data 
to distil insights that sharpen their business. 
As digital rewards first movers and superfast 
followers, we continue to scout the world for 
the most innovative start-ups and technologies 
to invest in. It’s all part of our plan to build on 
our digital strategy by staying at the leading 
edge of the digital revolution.

55
55

Singapore Telecommunications Limited  |  Annual Report 2018

5656

Singapore Telecommunications Limited  |  Annual Report 2018The digital revolution has dramatically changed the way we communicate and consume 
media, with everything we do now revolving around our mobile devices. This presents  
a huge opportunity for us to harness our core telecommunications assets and nurture 
our existing portfolio of digital businesses in digital marketing, advanced data analytics 
and over-the-top video to win in the digital economy. Our corporate venture arm 
Singtel Innov8 continues to invest in innovative start-ups that help drive our digital 
transformation.

AMOBEE EXPANDS ASIAN 
FOOTPRINT 
As traditional advertising increasingly 
shifts to online channels and devices, 
global digital ad spend is expected 
to almost double to US$427 billion 
by 2022 from about US$232 billion 
in 2017, according to research firm 
eMarketer. This growth will be driven 
primarily by demand from digital 
advertisers in Asia Pacific. To capture 
such opportunities, Amobee is 
expanding its footprint across  
the region.

In the past year, Amobee has made 
significant progress, delivering 
robust revenue growth and positive 
EBITDA for the full year for the  

first time since Singtel acquired it.  
Leveraging synergies from the 
acquisition of the Turn platform, it 
offers customers new programmatic 
solutions to improve the effectiveness 
of their campaigns. Amobee won 
more accolades, including the Gold 
Stevie Award for the Marketing 
Campaign of the Year for the Travel/
Tourism/Destination industry at the 
2017 American Business Awards for 
its work on Airbnb’s “Live There” 
global digital campaign.

HOOQ AND DATASPARK GAIN 
TRACTION 
Our video streaming service 
HOOQ and advanced analytics arm 
DataSpark are both gaining traction.

HOOQ now offers access to more 
than 35,000 hours of affordable 
Hollywood and local content to 
our customers across Indonesia, 
India, the Philippines, Thailand and 
Singapore. It continues to innovate 
its business and will launch its  
free-to-air live TV streaming service 
this year to bring users onto the 
HOOQ platform and complement  
its premium offerings.

HOOQ will also continue to focus 
on producing and licensing local 
original content across Southeast 
Asia to pull local audiences. It 
currently has about 20 projects 
in the pipeline. Among HOOQ’s 
recent local productions were 

57

Group Digital LifeIndonesian filmmaker Mouly Surya’s 
“Marlina The Murderer In Four Acts” 
and romantic comedy “Kita Kita,” 
the highest-grossing Philippine 
independent film for 2017. HOOQ 
has won exclusive broadcast rights 
to air two original TV series “The 
Oath” and “Carter” which were 
produced by Sony Pictures. 

DataSpark has been scaling 
its business across the region, 
offering a suite of data analytics 
solutions to industries ranging from 
telecommunications, transportation, 
retail and marketing to urban 
planning. DataSpark’s mobility 
intelligence platform which analyses 
people’s data consumption patterns 
and movement around high traffic 
areas is helping mobile operators  
in Singapore, Australia, Thailand,  
the Philippines and Indonesia 
optimise their network investments 
by allowing carriers to deploy  
cellular capacity where the 
bandwidth is most needed.  

In Australia, DataSpark recently 
conducted a mobility study on 
popular suburbs frequented by 
tourists, enabling advertisers to 
create campaigns targeted at  
the travel market.

INNOV8 DRIVES TECH 
INNOVATION
Our success hinges on continued 
innovation. To stay ahead of the 
curve, Innov8 has been investing  
in pioneering technologies.  
Since 2010, Innov8 has invested 
in over 70 companies globally  
across industries such as cyber 
security, digital marketing and data 
analytics. This year, Innov8 made 
a series of investments including 
the acquisition of stakes in Myriota, 
a maker of nanosatellites that are 
used for IoT connectivity; AirSpace 
Systems Inc, a manufacturer of  
drone defence systems; Qubole, 
which provides software that 
automates data analytics; and  
Attivo, a cyber security company  

that uses deception technology  
to protect IT networks.

In March, Innov8 and NUS' 
entrepreneurial arm launched  
the Innovation Cyber Security  
Ecosystem at Block 71 (ICE71), 
Singapore’s first integrated regional 
cyber security hub that aims to 
accelerate and support early  
stage and growing start-ups,  
entrepreneurs and academics  
from around the world. 

ICE71 is the latest collaboration 
between Singtel Innov8 and NUS 
since establishing the BLOCK71 
initiative in Singapore in 2011 to 
provide start-ups access to the 
resources they need to bring their 
solutions to market. The partners  
also set up BLOCK71 in San Francisco 
three years ago. Last year, Innov8 
established its presence in Beijing  
to tap into potential opportunities  
in China’s technology industry.

58

Singapore Telecommunications Limited  |  Annual Report 2018Nurturing the green shoots  
of digital innovation

Six years into its digital transformation journey, Singtel is beginning to see green 
shoots from its digital investments. Group Digital Life CEO Samba Natarajan 
discusses the business unit’s achievements and next stage of growth. 

What are the key milestones in 
Singtel’s digital transformation 
journey?

Samba: We’ve had significant 
achievements in the past six years. 
Most importantly, we have created 
a portfolio of digital initiatives that 
now contributes meaningfully to 
the Group’s revenue.

We are on track to scaling our 
digital marketing platform Amobee 
to become one of the world’s 
top leading independent digital 
marketing players. Fuelled by 

59

growth in digital advertising, 
Amobee has made significant 
progress, with revenues exceeding 
S$1.1 billion and EBITDA turning 
positive in the past year as it 
leveraged synergies following the 
acquisition of Turn. It also won new 
clients such as Cisco, Del Monte  
and Heineken. 

Our video streaming service HOOQ 
and data analytics arm DataSpark 
are both gaining traction. Mobile 
carriers around Asia are increasingly 
using DataSpark’s analysis of 
people’s data consumption patterns 

and movement around high-traffic 
areas to plan mobile network 
investments more effectively. 
HOOQ has more than tripled its 
subscriber base across Southeast 
Asia in the past year and is now 
ranked number one in terms of 
app downloads in Indonesia. It has 
been producing and licensing more 
original local content across the 
region to woo regional viewers.

Singtel Innov8, our corporate 
venture arm, has given us a 
strong presence in the innovation 
communities of Silicon Valley and 

The CEO ConversationIsrael, with start-ups increasingly 
coming to us for funding and 
partnerships. Through the years, 
Innov8 has invested in over 70 
companies globally in various 
verticals such as cyber security, 
digital marketing, mobile video and 
big data which are key pillars of our 
digital strategy.

How did Singtel identify these 
business opportunities early on?

Samba: We are constantly on the 
lookout for investments in the digital 
space, bearing in mind Singtel assets 
that we can leverage to provide 
differentiation.

For example, we got into digital 
marketing after noticing that 
advertisers have been shifting from 
traditional print and broadcast media 
to digital media. We have the right 
assets to win in digital advertising. 
Our market reach with over 650 
million mobile customers across 
Asia, Australia and Africa gives us 
a significant amount of information 
that advertisers can use for targeted 
marketing campaigns in a non-
invasive way. We also ventured into 
video on demand content because 
consumers’ changing habits meant 
that they are increasingly using their 
mobile devices to access movies, 
sports and other entertainment 
content.

Amobee is one of the Group’s  
more significant investments,  
what lies ahead for Amobee?

Samba: Amobee is constantly 
looking at new ways to empower 
brands and advertisers to reach 
consumers. To accelerate growth, 
Amobee will create a differentiated 
digital marketing platform by 
leveraging technology, data and 
media and will increase the self-
service capabilities of the platform. 

“To accelerate growth, Amobee will create 
a differentiated digital marketing platform 
by leveraging technology, data and media 
and will increase the self-service capabilities 
of the platform.”

SAMBA NATARAJAN 
CEO, GROUP DIGITAL LIFE

By combining machine learning 
and AI technologies to glean 
unique data through partnerships 
with telcos and third-party data 
providers, we are developing 
insights that can help companies 
create campaigns for specific 
demographics such as millennials 
and their travel destinations at 
certain periods. 

We will continue to innovate and 
expand Amobee’s footprint across 
Asia Pacific in order to capture the 
growing digital ad spending in this 
part of the world. This will also help 
diversify Amobee’s revenue base, 
which is currently US-centric.

What could be the next growth 
drivers for Group Digital Life?

Samba: I'm very excited about 
the future. Singtel’s aim is to 
win in the digital revolution. The 
world of technology and our 
telecommunications business are 
rapidly evolving all the time. If you 
look at some of the new innovations 
coming up, you see a lot of 
immersive technology, augmented 
reality, virtual reality, AI, machine 
learning, and even further advances 
in cyber security and digital 
marketing. There is continuous 
innovation and disruption going  
on across industries such as 
finance, healthcare, transportation, 

retail and gaming. And while 
disruptive, these concurrently 
present significant opportunities 
that we can capitalise or leverage.

Through Innov8, we are constantly 
identifying innovative start-ups to 
invest in so we can stay ahead of 
the game. I'm optimistic that we will 
continue to make new investments 
in the right areas of innovation. 
These would give us and our 
customers a stronger foundation  
for the future. 

Given that data is key to Singtel’s 
digitalisation strategy, what steps 
have you taken to protect customer 
data in the light of the Facebook/
Cambridge Analytica data breach?

Samba: While Singtel does not 
engage in similar activities, we 
have always been committed 
to protecting consumer data by 
focusing on data anonymity. We 
also adhere to best practices as  
well as regulations in all the 
countries we operate in. 

60

Singapore Telecommunications Limited  |  Annual Report 2018BUSINESS EXCELLENCE

SINGTEL

17TH CCAS INTERNATIONAL 
CONTACT CENTRE AWARDS 2017
• Best-In-House Contact Centre (Between  
  20-100 Seats) – Gold (Home Premium
  Hotlines)

• Most Innovative Productivity Solution in a  
  Contact Centre – Silver 

ASIA COMMUNICATIONS AWARDS 
2017
• Satellite Operator of the Year (2015 – 2017)

COMPUTERWORLD HONG KONG 
AWARDS 2017
• Global WAN Connectivity Service Provider  
  of the Year (2015 – 2017)

CSISG 2017
• Best in Mobile Telecom

CUSTOMER EXPERIENCE 
MANAGEMENT ASIA SUMMIT 2017
• Best Omni Channel Experience – Gold
• Best Contact Centre – Gold 
• Best Customer Experience Team – Silver 
• Best CEM Technology – Silver 

FROST & SULLIVAN ASIA PACIFIC 
ICT AWARDS 2017
• Telecom Group of the Year (2016 – 2017)

FROST & SULLIVAN ASIA PACIFIC 
BEST PRACTICES AWARDS 2017
• Singapore Managed Security Service 
  Provider of the Year (2016 – 2017)

• Singapore Managed Cloud Service Provider 
  of the Year

HWM + HARDWAREZONE.COM 
TECH AWARDS 2018
• Best Mobile Service Provider (Singapore)

• Best Fibre Broadband Service Provider 
  (Singapore) (2010 – 2018)

NETWORKWORLD ASIA 
INFORMATION MANAGEMENT 
AWARDS 2017
• Security-as-a-Service (2012 – 2017)

• Regional Security Operations Centre 

• Disaster Recovery & Business Continuity 
  (2014 – 2017)

61

NETWORKWORLD ASIA READERS’ 
CHOICE PRODUCT EXCELLENCE 
AWARDS 2017
• Managed Infrastructure Services 
  (2012 – 2017)

SINGAPORE RETAILERS 
ASSOCIATION ACHIEVEMENT IN 
CUSTOMER EXCELLENCE (ACE) 
PROGRAMME 2017
• ACE Platinum Award (Best in  
  Telecommunications Sector)

SITF AWARDS 2017
• Best Innovative Use of Infocomm  
  Technology (Private Sector) – Gold

TELCO CLOUD FORUM AWARDS 
2017
• Best Telco Cloud SDN/NFV Project

TELECOM ASIA AWARDS 2017 
• Best Managed Services Provider 

• Most Innovative Approach to Mobile Security

TMT TECHNOLOGY AWARDS 2017
• Best Mobile Service Provider – Singapore

OPTUS

2017 ACOMM AWARDS
• Commitment to Customer Service

• Best Marketing Initiative

EDISON AWARDS 2017
• Best Satellite Company

TRUSTWAVE

LEADERS' QUADRANT
• Gartner's Magic Quadrant for MSS,  
   Worldwide 2018

SC AWARDS 2017
• Best Managed Security Service

AMOBEE

2017 AMERICAN BUSINESS 
AWARDS
• Marketing Campaign of the Year (Travel/
  Tourism/Destination) – Gold (Airbnb & 
  Amobee)

2017 APAC STEVIE AWARDS
• Award for Innovation in Paid Media  
  Planning & Management – Gold 
  (Amobee Brand Intelligence)

• Award for Innovation in Social Media 
  Marketing – Gold (Airbnb & Amobee) 

DIGIDAY SIGNAL AWARDS 2017
• Best Marketing Dashboard Software 
  (Amobee Brand Intelligence)

IMEDIA ASPY AWARDS 2017
• Best Mobile Partner – Winner

REGIONAL ASSOCIATES

AIRTEL

AON BEST EMPLOYERS INDIA 
AWARDS 2017

FROST & SULLIVAN AUSTRALIA 
EXCELLENCE AWARDS 2017
• Australia Fixed Broadband Service Provider 
  of the Year

BUSINESS TODAY-PEOPLESTRONG 
BEST COMPANIES TO WORK FOR 
SURVEY 2017
• Best in Telecom & Allied

MVNO WORLD CONGRESS
• Best Hosting Operator

CARRIERS WORLD AWARDS 2017
• Best Wholesale Carrier (Global)

P3 CONNECT MOBILE 
BENCHMARK 2017 
• Best in Test

• No.1 Network Operator (Voice)

NCS

FINTECH INNOVATION AWARDS 
2017
• Best Innovation in Big Data and Analytics 
  Solution

FORBES WORLD’S MOST 
INNOVATIVE COMPANIES 2017
• Ranked 78th globally

GOLDEN PEACOCK AWARD 2017
• Sustainability 

TM FORUM EXCELLENCE AWARDS 
2017
• Smart Service Provider – Business 
  Transformation of the Year

FY 2018 Key Awards and AccoladesAIS

GLOBE

FORBES GLOBAL 2000: WORLD’S 
BEST EMPLOYERS 2017
• Ranked 30th globally

IR MAGAZINE SOUTH EAST ASIA 
AWARDS 2017
• Best in Sector (Telecommunications) – 
  Winner

OOKLA SPEEDTEST AWARDS 2017
• Fastest Mobile Network in Thailand

WORLD HRD CONGRESS GLOBAL 
HR EXCELLENCE AWARDS 2017
• Award for Managing Health at Work

ASIA MONEY BEST MANAGED 
COMPANIES POLL 2017 
• Best Managed Large Cap Company in the 
  Philippines

FROST & SULLIVAN ASIA PACIFIC 
ICT AWARDS 2017
• Fixed Broadband Service Provider of the Year

• Philippines Telecom Service Provider of the Year 

• Philippines Mobile Service Provider of the Year 

• Philippines Fixed Broadband Provider of the Year

• Telecom CEO of the Year

TELKOMSEL

BRAND ASIA AWARD 2017
• Most Powerful Telecommunication Brand in 
  Indonesia

FROST & SULLIVAN INDONESIA 
EXCELLENCE AWARDS 2017
• Digital Services Provider of the Year

• m-money Service Provider of the Year 
  (TCASH Telkomsel)

INDONESIA CHAMPION FOR  
ASEAN 2017
• Significant & Invaluable Contributions in 
  Building the Market in ASEAN Region

TELECOM ASIA AWARDS 2017
• Best Mobile Carrier

WORLD BRANDING AWARDS 2017
• Brand of the Year for Telecommunications 
  (Mobile) in Indonesia

CORPORATE CITIZENSHIP

SINGTEL

ASEAN CORPORATE 
GOVERNANCE SCORECARD 
COUNTRY REPORT FOR 
SINGAPORE 2018
• Top Achiever Award

• Board Diversity Award

ASIA SUSTAINABILITY 
REPORTING AWARDS 2017
• Asia’s Best Carbon Disclosure

CDP CLIMATE CHANGE 2017

COMMUNITY CHEST  
AWARDS 2017
• Corporate Platinum Award 

• SHARE Corporate Gold Award

• Special Events Platinum Award

FTSE4GOOD INDEX

GLOBAL 100 MOST  
SUSTAINABLE  
CORPORATIONS 2018
• Ranked 63rd globally 

• Top in Singapore

GOVERNANCE AND 
TRANSPARENCY INDEX 2017
• 1st in Singapore 

SUSTAINABLE BUSINESS 
AWARDS SINGAPORE 2017 
• Community

2018 WORLD’S MOST ETHICAL 
COMPANIES
• Honouree (2011 – 2018) 

OPTUS

2017 ITE-ANZ SUSTAINABLE 
TRANSPORT AWARD

AMY AWARDS (AIMIA)
• Best Website or Online Service (Health & 
  Wellbeing)

SGX SUSTAINABILITY LEADERS 
INDEX AND ENHANCED INDEX

SIAS INVESTORS’ CHOICE 
AWARDS 2017
• Shareholder Communications Excellence 
  Award (Big Cap)

• Singapore Corporate Governance Award 
  (Diversity)

• Singapore Corporate Governance Award 
  (Telecommunication Services)

• Sustainability Award

SINGAPORE CORPORATE  
AWARDS 2017
• Special Recognition Award

• Best CEO (Companies with S$1 billion 
  and above in market capitalisation) – 
  Chua Sock Koong

SINGAPORE HR AWARDS 2018
• Leading HR Practices in:
       - Talent Management Practices

       - Leadership Development

       - Diversity and Inclusion Strategies

• Outstanding Contribution to HR – 
   Aileen Tan

62

Singapore Telecommunications Limited  |  Annual Report 2018636363

Governance  
and  
Sustainability 
Philosophy

In today’s corporate world, doing good is 
simply good business. At Singtel, we have 
long recognised that the impact of our 
operations on the environment, our people 
and the communities we operate in is linked 
to our performance and the value we create 
for our stakeholders.

As such, we constantly strive to achieve 
world-class standards of governance and 
sustainability to ensure that we are doing 
our part as a responsible corporate citizen. 
We are happy to report that our efforts have 
won us global recognition. This is an ongoing 
journey, and we will continue to maintain the 
highest levels of transparency and integrity to 
ensure the future growth of our organisation.

Singapore Telecommunications Limited  |  Annual Report 2018

6464
64

Singapore Telecommunications Limited  |  Annual Report 2018OUR GOVERNANCE FRAMEWORK

CHAIRMAN
SIMON ISRAEL

Key Objective
Responsible for leadership 
of the Board and for creating 
conditions for overall Board, 
Board Committee and 
individual Director effectiveness

THE BOARD OF SINGTEL 
10 DIRECTORS:
7 independent Directors and  
3 non-independent Directors

Key Objective
To create value for 
shareholders and to ensure the 
long-term success of the Group

65

AUDIT COMMITTEE

CHAIRMAN
BOBBY CHIN

3 independent Directors and 
1 non-independent Director

Key Objective
Assist the Board in discharging its statutory and other 
responsibilities relating to internal controls, financial 
and accounting matters, compliance, and business and 
financial risk management

CORPORATE GOVERNANCE & NOMINATIONS COMMITTEE

CHAIRMAN
LOW CHECK KIAN

3 independent Directors and  
1 non-independent Director

Key Objectives
Establish and review the profile of Board members; make 
recommendations to the Board on the appointment, 
re-nomination and retirement of Directors; review the 
independence of Directors; assist the Board in evaluating 
the performance of the Board, Board Committees and 
Directors; and develop and review the Company’s 
corporate governance practices

EXECUTIVE RESOURCE & COMPENSATION COMMITTEE

CHAIRMAN
PETER MASON AM

2 independent Directors and  
1 non-independent Director

Key Objectives
Oversee the remuneration of the Board and Senior 
Management, and set appropriate remuneration 
framework and policies, including long-term incentive 
schemes, to deliver annual and long-term performance of 
the Group

FINANCE & INVESTMENT COMMITTEE

CHAIRMAN
SIMON ISRAEL

2 independent Directors and  
1 non-independent Director 

Key Objectives
Provide advisory support on the development of the 
Group’s overall strategy, review strategic issues, approve 
investments and divestments, review the Group’s 
Investment and Treasury Policies, evaluate and approve 
financial offers and banking facilities, and manage the 
Group’s liabilities 

RISK COMMITTEE

CHAIRMAN
TEO SWEE LIAN

3 independent Directors and  
1 non-independent Director

Key Objectives
Ensure that Management maintains a sound system of 
risk management and internal controls to safeguard 
shareholders’ interests and the Group’s assets, and 
determine the nature and extent of the material risks 
that the Board is willing to take in achieving the Group’s 
strategic objectives 

GROUP CHIEF EXECUTIVE OFFICER

CHUA SOCK KOONG 

Key Objectives
Manage the Group’s business and implement strategy 
and policy

MANAGEMENT COMMITTEE

Key Objective
Direct Management on operational policies and activities 

Group CEO,  
CEO Group Enterprise,  
CEO Consumer Australia,  
CEO Consumer Singapore,  
CEO International,  
CEO Group Digital Life,  
Group Chief Corporate Officer, 
Group CFO,  
Group Chief Human Resources  
Officer,  
Group Chief Information  
Officer, and  
Group Chief Technology Officer

Corporate GovernanceINTRODUCTION 
Singtel aspires to the highest standards of corporate 
governance as we believe that good governance 
supports long-term value creation. To this end, Singtel 
has in place a set of well-defined policies and processes 
to enhance corporate performance and accountability, 
as well as protect the interests of stakeholders. The 
Board of Directors is responsible for Singtel’s corporate 
governance standards and policies, and stresses their 
importance across the Group.

Singtel is listed on the Singapore Exchange Securities 
Trading Limited (SGX) and has complied in all 
material respects with the principles, guidelines and 
recommendations in the Singapore Code of Corporate 
Governance 2012 (Singapore Code). This report sets 
out Singtel’s key corporate governance practices with 
reference to the Singapore Code.

RECOGNITION OF SINGTEL’S COMMITMENT TO BEST PRACTICES IN CORPORATE GOVERNANCE

ASEAN CORPORATE 
GOVERNANCE 
SCORECARD 
COUNTRY REPORT 
FOR SINGAPORE 2018
•  Top Achiever Award
•  Board Diversity Award

GOVERNANCE AND 
TRANSPARENCY 
INDEX 2017
•  1st in Singapore

SINGAPORE CORPORATE 
AWARDS 2017
•  Best CEO 
   (Companies with S$1 billion 
    and above in market 
    capitalisation) 
•  Special Recognition Award 

SIAS INVESTORS’ CHOICE 
AWARDS 2017
•  Singapore Corporate 
   Governance Award (Diversity) 
•  Singapore Corporate 
   Governance Award 
   (Telecommunications Services)
•  Shareholder Communications 
   Excellence Award (Big Cap)

DIRECTORS’ ATTENDANCE AT BOARD/GENERAL MEETINGS DURING 
THE FINANCIAL YEAR ENDED 31 MARCH 2018 (1)

NAME OF DIRECTOR

MEETINGS HELD

ATTENDED

MEETINGS HELD

ATTENDED

SCHEDULED BOARD MEETINGS

AD HOC BOARD MEETINGS

MEETING

NUMBER 

NUMBER 

NUMBER OF 

OF MEETINGS 

NUMBER OF 

OF MEETINGS 

ANNUAL GENERAL 

Simon Israel
Chua Sock Koong
Gautam Banerjee (2)
Bobby Chin 
Venkataraman (Venky) Ganesan 
Low Check Kian
Peter Mason AM (3)
Christina Ong 
Peter Ong 
Teo Swee Lian 

6
6
1
6
6
6
6
6
6
6

6
6
1
6
6
6
6
6
6
6

1
1
-
1
1
1
1
1
1
1

Notes:
(1 )     Refers to meetings held/attended while each Director was in office.
(2)     Mr Gautam Banerjee was appointed to the Board on 1 March 2018.
(3)     Member of the Order of Australia.

1
1
-
1
1
1
1
1
1
1

✓
✓
-
✓
✓
✓
✓
✓
✓
✓

66

Singapore Telecommunications Limited  |  Annual Report 2018BOARD MATTERS 
The Board’s Conduct of Affairs
The Board aims to create value for shareholders and 
ensure the long-term success of the Group by focusing 
on the development of the right strategy, business 
model, risk appetite, management, succession plan 
and compensation framework. It also seeks to align 
the interests of the Board and Management with 
that of shareholders and balance the interests of all 
stakeholders. In addition, the Board sets the tone for 
the entire organisation where ethics and values are 
concerned. 

The Board oversees the business affairs of the Singtel 
Group. It assumes responsibility for the Group’s overall 
strategic plans and performance objectives, financial 
plans and annual budget, key operational initiatives, 
major funding and investment proposals, financial 
performance reviews, compliance and accountability 
systems, and corporate governance practices. The 
Board also appoints the Group CEO, approves 
policies and guidelines on remuneration as well as the 
remuneration for the Board and Senior Management, 
and approves the appointment of Directors. In line with 
best practices in corporate governance, the Board also 
oversees the long-term succession planning for Senior 
Management. 

Singtel has established financial authorisation and 
approval limits for operating and capital expenditure, 
the procurement of goods and services, and the 
acquisition and disposal of investments. The Board 
approves transactions exceeding certain threshold 
limits, while delegating authority for transactions 
below those limits to the Board Committees and the 
Management Committee to optimise operational 
efficiency.

Board meetings
The Board and Board Committees meet regularly to 
discuss strategy, operational matters and governance 
issues. All Board and Board Committee meetings are 
scheduled well in advance of each year in consultation 
with the Directors. At every scheduled meeting, the 
Board sets aside time for discussion without the 
presence of Management (except the executive 
Director). The non-executive Directors meet separately 
at least once a year without any executives present.  
The Board holds approximately six scheduled meetings 
each year, and may also hold ad hoc meetings as and 
when warranted by particular circumstances. Seven 
Board meetings were held in the financial year ended  

67

Material items that require Board approval include:

•  The Group’s strategic plans
•  The Group’s annual operating plan and budget
•  Full-year, half-year and quarterly financial results
•  Dividend policy and payout
•  Issue of shares
•  Board succession plans
•  Succession plans for Senior Management, 

including appointment of, and compensation for, 
Group CEO, CEOs, Group Chief Corporate Officer 
and Group CFO

•  Underlying principles of long-term incentive 

schemes for employees

•  The Group’s risk appetite and risk tolerance for 

different categories of risk, as well as risk strategy 
and the policies for management of material risks

•  Acquisitions and disposals of investments 

exceeding certain material limits

•  Capital expenditures exceeding certain material 

limits

31 March 2018. Attendance at Board or Board Committee 
meetings via telephone or video conference is permitted 
by Singtel’s Constitution. 

Typically, one Board meeting a year is held in Australia, 
where one of Singtel’s key subsidiaries, Optus, is 
located. In addition, the Board makes an overseas trip 
annually to a country where the Group has a significant 
investment or has an interest in investing, or where Board 
members can be exposed to new technology relevant 
to the Group’s growth strategy. On such occasions, 
the Board may meet with local business leaders and 
government officials so as to help Board members gain 
greater insight into such countries. The Board also meets 
Singtel’s partners and key customers in those countries 
to develop stronger relationships with such partners and 
customers. Singtel also arranges for the Board to meet 
with experts in the technology/digital space to enhance 
their knowledge in new growth areas and enable the 
Board to make more informed decisions. Board meetings 
may include presentations by senior executives and 
external consultants/experts on strategic issues relating 
to specific business areas, as well as presentations by 
the Group’s associates. This allows the Board to develop 
a good understanding of the Group’s businesses and to 
promote active engagement with the Group’s partners 
and key executives. 

A record of the Directors’ attendance at Board meetings 
during the financial year ended 31 March 2018 is set out 

Corporate Governanceon page 66. Directors who are unable to attend a Board 
meeting are provided with the briefing materials and can 
discuss issues relating to the matters to be discussed at 
the Board meeting with the Chairman or the Group CEO.

Director development/training 
The Board values ongoing professional development 
and recognises that it is important that all Directors 
receive regular training so as to be able to serve 
effectively on, and contribute to, the Board. The 
Board has therefore adopted a policy on continuous 
professional development for Directors. 

All new Directors appointed to the Board are briefed 
by the Chairman, as well as the chairmen of the Board 
Committees, on issues relevant to the Board and 
Board Committees. They are also briefed by senior 
management on the Group’s business activities, 
strategic direction and policies, key business risks, the 
regulatory environment in which the Group operates 
and governance practices, as well as their statutory and 
other duties and responsibilities as Directors. 

Upon appointment to the Board, each Director receives 
a Directors’ Manual, which sets out the Director’s duties 
and responsibilities and the Board governance policies 
and practices. The Directors’ Manual is maintained 
by the Company Secretary. In line with best practices 
in corporate governance and the Singapore Code, 
new Directors also sign a letter of appointment from 
the Company stating clearly the role of the Board and 
non-executive Directors, the time commitment that 
the Director would be expected to allocate and other 
relevant matters.

To ensure Directors can fulfil their obligations and to 
continually improve the performance of the Board, 
all Directors are encouraged to undergo continual 

professional development during the term of their 
appointment. Professional development may relate to 
a particular subject area, committee membership, or 
key developments in Singtel’s environment, market 
or operations. Directors are encouraged to consult 
the Chairman if they consider that they personally, 
or the Board as a whole, would benefit from specific 
education or training regarding matters that fall within 
the responsibility of the Board or relate to the business 
of Singtel. 

During the financial year ended 31 March 2018, the 
development/training programmes for Directors 
included the following:
•   The Directors participated in an annual offsite 

workshop with Senior Management to formulate 
and plan the Group’s longer-term strategy, during 
which the Directors were briefed on developments in 
the markets in which the Group operates and were 
introduced to new technologies and advancements 
relevant to the Group. 

•   Directors were invited to meet with the Technology 

Advisory Panel, during which they were also 
updated by representatives from companies in the 
digital/technology space on emerging trends and 
technologies relevant to the Group’s business.

•   The Board visited the Group’s businesses in the US, 

including Amobee, Trustwave and Singtel Innov8 and 
also met with various technology companies there.
•   The Board went on a tour of Singtel’s flagship data 
centre, DC West, in Jurong and was briefed on the 
data centre’s operations and business.

•   The Board visited the Optus campus in Sydney, 

Australia, and met with business leaders and key 
customers there.

•  Members of the Board attended forums and 

dialogues with experts and senior business leaders 
on issues facing boards and board practice.

BOARD COMPOSITION, DIVERSITY AND BALANCE

20%

10%

Independence

Independent, non-
executive directors
Non-independent, non-
executive directors
Executive director/GCEO

70%

Gender 
Diversity

70%

Male directors
Female directors

30%

68

Singapore Telecommunications Limited  |  Annual Report 2018There are 10 Directors on the Board, comprising 
seven non-executive independent Directors, two non-
executive non-independent Directors and one executive 
Director. The Board has appointed a Lead Independent 
Director. A summary of the role of the Lead Independent 
Director is set out on page 71. The profiles of the 
Directors are set out on pages 17 to 26.

The size and composition of the Board are reviewed 
from time to time by the Corporate Governance and 
Nominations Committee (CGNC). The CGNC seeks 
to ensure that the size of the Board is conducive for 
effective discussion and decision making, and that 
the Board has an appropriate number of independent 
Directors. The CGNC also aims to maintain a diversity 
of expertise, skills and attributes among the Directors. 
Any potential conflicts of interest are taken into 
consideration.

In order to ensure that Singtel continues to be able 
to meet the challenges and demands of the markets 
in which Singtel operates, the Board is focused 
on enhancing the diversity of skills, expertise and 
perspectives on the Board in a structured way by 
proactively mapping out Singtel’s Board composition 
needs over the short and medium term (Board 
Progression Planning). This is an ongoing process 
facilitated by an independent consultant and is 
informed by a series of detailed interviews between the 
consultant and each member of the Board as well as 
key management members.

Board diversity
Singtel is committed to building a diverse, inclusive and 
collaborative culture. Singtel recognises and embraces 
the benefits of diversity on the Board, and views 
diversity at the Board level as an essential element in 
supporting the attainment of its strategic objectives and 
its sustainable development.

The Board’s Diversity Policy provides that, in reviewing 
Board composition and succession planning, the CGNC 
will consider the benefits of all aspects of diversity, 
including diversity of skills, experience, background, 
gender, age, ethnicity and other relevant factors. 
These differences will be considered in determining 
the optimum composition of the Board and when 
possible should be balanced appropriately. All Board 
appointments are made based on merit, in the context 
of the skills, experience, independence and knowledge 

which the Board as a whole requires to be effective. 
Diversity is a key criterion in the instructions to external 
search consultants.

The Board is of the view that gender is an important 
aspect of diversity and will strive to ensure that (a) 
any brief to external search consultants to search for 
candidates for appointment to the Board will include a 
requirement to present female candidates, (b) female 
candidates are included for consideration by the 
CGNC whenever it seeks to identify a new Director for 
appointment to the Board, (c) the Board appoints at 
least one female Director to the CGNC, and (d) there 
is significant and appropriate female representation 
on the Board, recognising that the Board’s needs will 
change over time taking into account the skills and 
experience of the Board.

Reflecting the focus of the Group’s business in the 
region, three of Singtel’s 10 Directors are from, and 
have extensive experience in, jurisdictions outside 
Singapore, namely, the Chairman, Mr Simon Israel, 
and non-executive Directors, Messrs Venky Ganesan 
and Peter Mason AM. In relation to gender diversity, 
30% of the Singtel Board, or three out of the 10 Board 
members, are female. Other than the Group CEO, none 
of the Directors is a former or current employee of the 
Company or its subsidiaries. 

Independence
The Board, taking into account the views of the CGNC, 
assesses the independence of each Director annually 
in accordance with the guidance in the Singapore 
Code. A Director is considered independent if he has 
no relationship with the Group or its officers that could 
interfere, or be reasonably perceived to interfere, with 
the exercise of his independent business judgement in 
the best interests of Singtel.

The Board takes into account the existence of 
relationships or circumstances, including those 
identified by the Singapore Code, that are relevant in its 
determination as to whether a Director is independent. 
Such relationships or circumstances include the 
employment of a Director by the Company or any 
of its related corporations during the financial year 
in question or in any of the previous three financial 
years; the acceptance by a Director of any significant 
compensation from the Company or any of its related 
corporations for the provision of services during the 

69

Corporate Governancefinancial year in question or the previous financial 
year, other than compensation for board service; and 
a Director being related to any organisation to which 
the Company or any of its subsidiaries made, or from 
which the Company or any of its subsidiaries received, 
significant payments or material services during the 
financial year in question or the previous financial year.

The CGNC and the Board have assessed the 
independence of each of the Directors in 2018. A 
summary of the outcome of that assessment is set out 
below.

Based on the declarations of independence provided 
by the Directors and taking into account the guidance  
in the Singapore Code, the Board has determined that  
Ms Chua Sock Koong, Singtel’s Group CEO,  
Mr Simon Israel, Chairman of the Singtel Board, and 
Mr Peter Ong are the only non-independent Directors. 
All other members of the Board are considered to be 
independent Directors. In line with the Board’s Code of 
Conduct and Ethics, each member of the CGNC and the 
Board recused himself or herself from the CGNC’s and 
the Board’s deliberations respectively on his or her own 
independence.  

Mr Simon Israel is considered non-independent as he 
had previously been deemed non-independent by 
virtue of his previous roles as a non-executive director, 
and subsequently executive director, of Temasek 
Holdings (Private) Limited (Temasek). He stepped down 
from Temasek in June 2011. Temasek has an interest of 
approximately 52% in Singtel as at 31 March 2018. 

Mr Peter Ong is considered non-independent as he was 
the Permanent Secretary, Ministry of Finance until April 
2016.  The Singapore Minister for Finance is the owner 
of Temasek.  Mr Ong retired from the Singapore Civil 
Service with effect from 1 September 2017.

Mr Bobby Chin was appointed to the Singtel Board on  
1 May 2012 as an independent Director and to the 
Board of Directors of Temasek on 10 June 2014. After 
due consideration, the Board continues to regard  
Mr Chin as independent as he does not represent 
Temasek on the Singtel Board and he is not 
accustomed or under an obligation, whether formal 
or informal, to act in accordance with the directions, 
instructions or wishes of Temasek. As Mr Chin has 
demonstrated independence in character and 

judgement in the discharge of his responsibilities as a 
Director, the Board is satisfied that he will continue to 
exercise independent judgement and act in the best 
interests of Singtel and its security holders generally.

Mr Bobby Chin, Mrs Christina Ong, Mr Low Check 
Kian and Mr Gautam Banerjee are board members of 
organisations that purchase services and/or equipment 
from the Singtel Group in the ordinary course of 
business. The Directors’ roles in those organisations 
are non-executive in nature and they are not involved 
in the day-to-day conduct of the business of those 
organisations. In addition, Mrs Ong is a partner of Allen 
& Gledhill LLP (A&G).  A&G provides legal services to, 
and receives fees from, the Singtel Group. However, Mrs 
Ong has an interest of less than 5% in A&G.  
Mrs Ong is also on the board of Oversea-Chinese 
Banking Corporation Limited, which provides banking 
services in the ordinary course of business to the 
Singtel Group. The Board is of the view that the 
abovementioned relationships do not impair the 
Directors’ ability to act with independent judgement in 
the discharge of their responsibilities as Directors as 
the revenues arising from such relationships are not 
significant.

Mr Venky Ganesan is a director of BitSight Technologies, 
Inc (Bitsight). Singtel’s subsidiary, Singtel Innov8 Pte 
Ltd, has an interest of less than 2% in BitSight. The 
investment in BitSight by Singtel Innov8 Pte Ltd was 
made independent of Mr Ganesan’s association 
with Singtel. The Board is of the view that the above 
relationship does not impair Mr Ganesan’s ability to act 
with independent judgement in the discharge of his 
responsibilities as a Director.

Under the Board’s Code of Conduct and Ethics, 
Directors must avoid situations in which their own 
personal or business interests directly or indirectly 
conflict, or appear to conflict, with the interests of 
Singtel. The Code of Conduct and Ethics provides that 
where a Director has a conflict of interest, or it appears 
that he might have a conflict of interest, in relation to 
any matter, he should immediately declare his interest 
at a meeting of the Directors or send a written notice to 
the Company containing details of his interest and the 
conflict, and recuse himself from participating in any 

70

Singapore Telecommunications Limited  |  Annual Report 2018discussion and decision on the matter. Where relevant, 
the Directors have complied with the provisions of the 
Code of Conduct and Ethics, and such compliance has 
been duly recorded in the minutes of meeting.

The Chairman provides support and advice to, and 
acts as a sounding board for, the Group CEO, while 
respecting executive responsibility. He engages with 
other members of the senior leadership regularly.

The Chairman and the Group CEO
The Chairman of the Board is a non-executive 
appointment and is separate from the office of the 
Group CEO. The Chairman leads the Board and is 
responsible for ensuring the effectiveness of the Board 
and its governance processes, while the Group CEO is 
responsible for implementing the Group’s strategies and 
policies, and for conducting the Group’s business. The 
Chairman and the Group CEO are not related. 

The Chairman also maintains effective communications 
with large shareholders and supports the Group CEO in 
engaging with a wide range of other stakeholders such 
as partners, governments and regulators where the 
Group operates. He travels overseas to visit the Group’s 
key associates in the region and, in the process, fosters 
strong relationships with the Group’s partners and 
gathers valuable feedback for Management to consider 
and follow up on.

Role of the Chairman
The Chairman is responsible for leadership of the 
Board and is pivotal in creating the conditions for 
overall Board, Board Committee and individual Director 
effectiveness, both inside and outside the boardroom. 
This includes setting the agenda of the Board in 
consultation with the Directors and the Group CEO, and 
promoting active engagement and an open dialogue 
among the Directors, as well as between the Board and 
the Group CEO.

The scope and extent of the Chairman’s and the Board’s 
responsibilities and obligations have been expanding 
due to the increased focus on corporate governance, 
risk management, regulation and compliance. Given the 
increased demands, the Chairman in particular spends 
more time on, and is more hands-on in, the affairs of 
the Group. The Board has agreed with the Chairman 
that he will commit a significant proportion of his time 
to his role and will manage his other time commitments 
accordingly.

The Chairman ensures that the performance of 
the Board is evaluated regularly, and guides the 
development needs of the Board. The Chairman 
leads the evaluation of the Group CEO’s performance 
and works with the Group CEO in overseeing talent 
management to ensure that robust succession plans are 
in place for the senior leadership team.

The Chairman works with the Board, the relevant 
Board Committees and Management to establish the 
boundaries of risk undertaken by the Group and ensure 
that governance systems and processes are in place 
and regularly evaluated.

The Chairman plays a significant leadership role by 
providing clear oversight, advice and guidance to the 
Group CEO and Management on strategy and the 
drive to transform Singtel’s businesses. This involves 
developing a keen understanding of the Group’s 
diverse and complex businesses, the industry, partners, 
regulators and competitors.

Role of the Lead Independent Director
The Lead Independent Director is appointed by 
the Board to serve in a lead capacity to coordinate 
the activities of the non-executive Directors in 
circumstances where it would be inappropriate for the 
Chairman to serve in such capacity. He also assists the 
Chairman and the Board to assure effective corporate 
governance in managing the affairs of the Board and 
the Company.

The Lead Independent Director serves as chairman of 
the CGNC. The role of the Lead Independent Director 
includes meeting with the non-executive Directors 
without the Chairman present at least annually to 
appraise the Chairman’s performance and on such 
other occasions as are deemed appropriate. He will 
also be available to shareholders if they have concerns 
relating to matters that contact through the Chairman, 
Group CEO or Group CFO has failed to resolve, or 
where such contact is inappropriate.

71

Corporate GovernanceRole of the Non-Executive Directors
The role of the non-executive Directors encompasses the 
following: (i) to constructively challenge and help develop 
proposals on strategy; and (ii) to review the performance 
of management in meeting agreed goals and objectives 
and monitor the reporting of performance.

Board Membership
The CGNC establishes and reviews the profile required 
of Board members and makes recommendations to 
the Board on the appointment, re-nomination and 
retirement of Directors.

When an existing Director chooses to retire or is 
required to retire from office by rotation, or the need 
for a new Director arises, the CGNC reviews the 
range of expertise, skills and attributes of the Board 
and the composition of the Board. The CGNC then 
identifies Singtel’s needs and prepares a shortlist of 
candidates with the appropriate profile for nomination 
or re-nomination. The Board has an ongoing process 
facilitated by an independent consultant to map out 
these needs and to search for candidates to join the 
Board.

The CGNC takes factors such as attendance, 
preparedness, participation and candour into 
consideration when evaluating the past performance 
and contributions of a Director when making its 
recommendations to the Board. However, the re-
nomination or replacement of a Director does not 
necessarily reflect the Director’s performance or 
contributions to the Board. The CGNC may have to 
consider the need to position and shape the Board in 
line with the evolving needs of Singtel and the business.

When deciding on the appointment of new Directors to 
the Board, the CGNC and the Board consider a variety 
of factors, including the core competencies, skills and 
experience that are required on the Board and Board 
Committees, diversity, independence, conflicts of 
interest and time commitments.

In order to ensure Board renewal, the Board has in 
place guidelines on the tenure of the Chairman and 
Directors. The guidelines provide that Directors are 
appointed for an initial term of three years, and this 
may be extended to a second three-year term. As 
a general rule, a Director shall step down from the 

Board no later than at the Annual General Meeting 
(AGM) to be held in his sixth year of service. Where 
a Director is not appointed at an AGM, the Director’s 
term will be deemed to have commenced on the date 
of the AGM immediately following the date on which 
the Director was appointed. The Committee may, in 
appropriate circumstances, recommend to the Board 
that a Director’s term be extended beyond the second 
three-year term, for a period of up to three years. For 
Chairman, the same principles apply except that the 
term is determined from the point he became Chairman.

Directors must ensure that they are able to give 
sufficient time and attention to the affairs of Singtel 
and, as part of its review process, the CGNC decides 
whether or not a Director is able to do so and whether 
he has been adequately carrying duties as a Director 
of Singtel. The Board has also adopted an internal 
guideline that seeks to address the competing time 
commitments that may be faced when a Director 
holds multiple board appointments. The guideline 
provides that, as a general rule, each Director should 
hold no more than five directorships in public listed 
companies. However, the Board recognises that the 
individual circumstances and capacity of each Director 
are different and there may be circumstances in which 
a different limit on board appointments is appropriate. 
The guideline also provides that (i) in support of their 
candidature for directorship or re-election, Directors are 
to provide the CGNC with details of other commitments 
and an indication of the time involved, and (ii) non-
executive Directors should consult the Chairman or 
chairman of the CGNC before accepting any new 
appointments as Directors.  There are no alternate 
Directors on the Board.

The Company’s Constitution provides that a Director 
must retire from office at the third AGM after the 
Director was elected or last re-elected.

A retiring Director is eligible for re-election by Singtel 
shareholders at the AGM. In addition, a Director 
appointed by the Board to fill a casual vacancy or 
appointed as an additional Director may only hold 
office until the next AGM, at which time he will be 
eligible for re-election by shareholders. If at any AGM, 
fewer than three Directors would retire pursuant 
to the requirements set out above, the additional 
Directors to retire at that AGM shall be those who have 

72

Singapore Telecommunications Limited  |  Annual Report 2018been longest in office since their last re-election or 
appointment. The Group CEO, as a Director, is subject 
to the same retirement by rotation, resignation and 
removal provisions as the other Directors, and such 
provisions will not be subject to any contractual terms 
that may have been entered into with the Company. 
Shareholders are provided with relevant information 
in the Annual Report on the candidates for election or 
re-election.

Board Performance
Each year, the CGNC undertakes a process to assess 
the effectiveness of the Board, the Board Committees 
and individual Directors. For the financial year ended 
31 March 2018, as in previous years, an independent 
external consultant was appointed to facilitate this 
process. The 2018 Board effectiveness survey 
was designed to provide an evaluation of current 
effectiveness of the Board and to support the Chairman 
and Board to proactively consider the Board’s role 
in shaping Singtel’s future.  The Directors and Senior 
Management were requested to complete an evaluation 
questionnaire focused on five key areas, namely (1) 
core Board effectiveness, including strategic alignment, 
Board focus and priorities, Board and Board Committee 
processes, and Board composition and structure; (2) 
Board culture and dynamics, including the Board’s 
partnership with Management, and Board leadership; 
(3) Board agility and the Board’s role in assisting 
Management to anticipate and shape the future and 
lead transformation ahead of the market, including CEO 
and Board succession planning; (4) Board Committee 
effectiveness; and (5) individual Director contribution.

In addition to the appraisal exercise, the contributions 
and performance of each Director were assessed by the 
CGNC as part of its periodic reviews of the composition 
of the Board and the various Board Committees. In 
the process, the CGNC was able to identify areas for 
improving the effectiveness of the Board and Board 
Committees. The Board was also able to assess the 
Board Committees through their regular reports to the 
Board on their activities.

Access to information 
Prior to each Board meeting, Singtel’s Management 
provides the Board with information relevant to 
matters on the agenda for the meeting. In general, 
such information is provided a week in advance of 

the Board meeting. The Board also receives regular 
reports pertaining to the operational and financial 
performance of the Group, as well as regular updates, 
which include information on the Group’s competitors, 
and industry and technological developments. In 
addition, Directors receive analysts’ reports on Singtel 
and other telecommunications and digital companies 
on a quarterly basis. Such reports enable the Directors 
to keep abreast of key issues and developments in 
the industry, as well as challenges and opportunities 
for the Group. In line with Singtel’s commitment to 
conservation of the environment, as well as technology 
advancement, Singtel has done away with hard copy 
Board papers, and Directors are instead provided with 
tablet devices to enable them to access and read Board 
and Board Committee papers prior to and at meetings. 

The Board has separate and independent access to the 
Senior Management and the Company Secretary at all 
times. Procedures are in place for Directors and Board 
Committees, where necessary, to seek independent 
professional advice, paid for by Singtel.

Role of the Company Secretary 
The Company Secretary attends all Board meetings 
and is accountable directly to the Board, through 
the Chairman, on all matters to do with the proper 
functioning of the Board, including compliance with 
the Company’s Constitution, the Companies Act, 
the Securities and Futures Act and the SGX Listing 
Manual. She assists the Board in implementing and 
strengthening corporate governance policies and 
processes. The Company Secretary is the primary point 
of contact between the Company and the SGX. The 
Company Secretary is legally trained, with experience 
in legal matters and company secretarial practices. The 
appointment and removal of the Company Secretary is 
subject to the approval of the Board. 

Board and management committees 
The following Board Committees assist the Board in 
executing its duties: 
•  Audit Committee (AC) 
•  Corporate Governance and Nominations Committee 

(CGNC) 

•  Executive Resource and Compensation Committee 

(ERCC) 

•  Finance and Investment Committee (FIC) 
•  Risk Committee (RC) 

73

Corporate GovernanceEach Board Committee may make decisions on matters 
within its terms of reference and applicable limits of 
authority. The terms of reference of each committee 
are reviewed from time to time, as are the committee 
structure and membership. 

The selection of Board Committee members requires 
careful management to ensure that each committee 
comprises Directors with appropriate qualifications 
and skills, and that there is an equitable distribution 
of responsibilities among Board members. The need 
to maximise the effectiveness of the Board, and 
encourage active participation and contribution from 
Board members, is also taken into consideration. 

A record of each Director’s Board Committee 
memberships and attendance at Board Committee 
meetings during the financial year ended 31 March 2018 
is set out on page 78.

AUDIT COMMITTEE

MEMBERSHIP
Bobby Chin, committee chairman and independent 
non-executive Director
Gautam Banerjee, independent non-executive 
Director (appointed on 1 March 2018)
Christina Ong, independent non-executive Director 
Peter Ong, non-executive Director 

Note:  
Teo Swee Lian stepped down as AC member on 1 March 2018.

KEY OBJECTIVE
•  Assist the Board in discharging its statutory and 
  other responsibilities relating to internal controls, 
  financial and accounting matters, compliance, 
  and business and financial risk management

The terms of reference of the AC provide that the AC 
shall comprise at least three Directors, all of whom are 
non-executive Directors and the majority, including 
the chairman, are independent Directors. At least two 
members of the AC, including the AC chairman, must 
have recent and relevant accounting or related financial 
management expertise or experience. The chairman 
of the AC is a Director other than the Chairman of the 
Singtel Board.

The AC has explicit authority to investigate any matter 
within its terms of reference, and has full cooperation 
and access to Management. It has direct access to 
the internal and external auditors, and full discretion 
to invite any Director or executive officer to attend its 
meetings. It also has the authority to review its terms 
of reference and its own effectiveness annually and 
recommend necessary changes to the Board. 

The main responsibilities of the AC are to assist 
the Board in discharging its statutory and other 
responsibilities relating to internal controls, financial  
and accounting matters, compliance, and business  
and financial risk management. 

The AC reports to the Board on the results of the 
audits undertaken by the internal and external 
auditors, the adequacy of disclosure of information, 
and the adequacy and effectiveness of the system 
of risk management and internal controls. It reviews 
the quarterly and annual financial statements with 
Management and the external auditors, reviews and 
approves the annual audit plans for the internal and 
external auditors, and reviews the internal and  
external auditors’ evaluation of the Group’s system  
of internal controls. 

The AC is responsible for evaluating the cost 
effectiveness of audits, the independence and 
objectivity of the external auditors, and the nature 
and extent of the non-audit services provided by  
the external auditors to ensure that the independence 
of the external auditors is not compromised. It 
also makes recommendations to the Board on the 
appointment or re-appointment of the external 
auditors. In addition, the AC reviews and approves  
the Singtel Internal Audit Charter for independence  
and effectiveness of the internal audit function, as  
well as adequacy of resourcing and its standing  
within Singtel. The AC also reviews the performance  
of Internal Audit, including approving decisions  
relating to appointment or removal of Group Chief 
Internal Auditor and approving the performance and 
compensation of the Group Chief Internal Auditor. 
A copy of the charter of the AC is available on the 
corporate governance page on the Company’s website 
at www.singtel.com/about-us/company/corporate-
governance. 

74

Singapore Telecommunications Limited  |  Annual Report 2018During the financial year, the AC reviewed the 
Management’s and Singtel Internal Audit’s assessment 
of fraud risk and held discussions with the external 
auditors to obtain reasonable assurance that adequate 
measures were put in place to mitigate fraud risk 
exposure in the Group. The AC also reviewed the 
adequacy of the whistle-blower arrangements instituted 
by the Group through which staff and external parties 
can in confidence raise concerns about possible 
improprieties in matters of financial reporting or other 
matters. All whistle-blower complaints were reviewed by 
the AC at its quarterly meetings to ensure independent 
and thorough investigation and adequate follow-up. 

The AC met five times during the financial year. At 
these meetings, the Group CEO, Group Chief Corporate 
Officer, Group CFO, Vice President (Group Finance), 
Group Chief Internal Auditor and the respective CEOs 
of the businesses were also in attendance. During the 
financial year, the AC reviewed the results of audits 
performed by Internal Audit based on the approved 
audit plan, significant litigation and fraud investigations, 
register of interested person transactions and non-audit 
services rendered by the external auditors. The AC also 
met with the internal and external auditors, without the 
presence of Management, during the financial year. 

The external auditors provided regular updates and 
periodic briefings to the AC on changes or amendments 
to accounting standards to enable the members 
of the AC to keep abreast of such changes and its 
corresponding impact on the financial statements, if any. 
Directors are also invited to attend relevant seminars on 
changes to accounting standards and issues by leading 
accounting firms.

Financial matters
The AC reviewed the financial statements of the Group 
before the announcement of the Group’s quarterly and 
full-year results. In the process, the AC reviewed the 
key areas of management’s estimates and judgement 
applied for key financial issues including revenue 
recognition, taxation, goodwill impairment, and the joint 
ventures’ and associates’ contingent liabilities, critical 
accounting policies and any other significant matters 
that might affect the integrity of the financial statements. 
The AC also considered the report from the external 
auditors, including their findings on the key areas of 
audit focus. Significant matters that were discussed 
with management, internal and external auditors 

have been included as key audit matters (KAMs) in 
the independent auditors’ report for the financial year 
ended 31 March 2018. Refer to pages 139 to 144 of this 
Annual Report.

The AC took into consideration the approach and 
methodology applied in the valuation of acquired 
businesses, as well as the reasonableness of the 
estimates and key assumptions used. In addition to the 
views from the external auditors, subject matter experts 
including external tax specialists and legal experts, 
were consulted. The AC concluded that management’s 
accounting treatment and estimates in each of the 
KAMs were appropriate.

The information included in the Annual Report, 
excluding the Financial Statements and auditor’s report, 
was provided to the external auditors after the auditor’s 
report date. The external auditors have provided a 
written confirmation to the AC that they have completed 
the work in accordance with SSA 720 (Revised) The 
Auditor’s Responsibilities Relating to Other Information 
and they have noted no exception.

CORPORATE GOVERNANCE AND 
NOMINATIONS COMMITTEE

MEMBERSHIP
Low Check Kian, committee chairman and 
independent non-executive Director
Simon Israel, non-executive Chairman of the Singtel 
Board
Christina Ong, independent non-executive Director 
Teo Swee Lian, independent non-executive Director 
(appointed on 1 March 2018)

KEY OBJECTIVES
•  Establish and review the profile of Board members
•  Make recommendations to the Board on the 

appointment, re-nomination and retirement of 
Directors

•  Review the independence of Directors
•  Assist the Board in evaluating the performance of 

the Board, Board committees and Directors
•  Develop and review the Company’s corporate 

governance practices, taking into account relevant 
local and international developments in the area 
of corporate governance

75

Corporate GovernanceThe terms of reference of the CGNC provide that the 
CGNC shall comprise at least three Directors, the 
majority of whom, including the chairman, shall be 
independent. As part of its commitment to gender 
diversity, the Board will strive to appoint at least one 
female Director to the CGNC. 

The main responsibilities of the ERCC, as delegated 
by the Board, are to oversee the remuneration of the 
Board and Senior Management. It sets appropriate 
remuneration framework and policies, including long-
term incentive schemes, to deliver annual and long-term 
performance of the Group. 

The main activities of the CGNC are outlined in the 
commentaries on “Board Composition, Diversity 
and Balance”, “Board Membership” and “Board 
Performance” from pages 68 to 73. 

The CGNC met two times during the financial year 
ended 31 March 2018, and also approved various 
matters by written resolution.

EXECUTIVE RESOURCE AND  
COMPENSATION COMMITTEE

MEMBERSHIP
Peter Mason AM, committee chairman and 
independent non-executive Director
Simon Israel, non-executive Chairman of the Singtel 
Board
Teo Swee Lian, independent non-executive Director

KEY OBJECTIVES
•  Oversee the remuneration of the Board and 

Senior Management 

•  Set appropriate remuneration framework and 

policies, including long-term incentive schemes, to 
deliver annual and long-term performance of the 
Group

The ERCC plays an important role in helping to ensure 
that the Group is able to attract, recruit, motivate 
and retain the best talents through competitive 
remuneration and progressive and robust policies so 
as to achieve the Group’s goals and deliver sustainable 
shareholder value. 

The terms of reference of the ERCC provide that the 
ERCC shall comprise at least three Directors, all of 
whom shall be non-executive and the majority of whom 
shall be independent. The ERCC is chaired by an 
independent non-executive Director.

The ERCC has been tasked by the Board to approve or 
recommend to the Board the appointment, promotion 
and remuneration of Senior Management. The ERCC 
also recommends the Directors’ compensation for 
the Board’s endorsement. Directors’ compensation is 
subject to the approval of shareholders at the AGM. 
The ERCC’s recommendations cover all aspects of 
remuneration for Directors and Senior Management, 
including but not limited to Director’s fees, salaries, 
allowances, bonuses, options, share-based incentives, 
management awards, and benefits-in-kind. 

The ERCC seeks expert advice and views on 
remuneration and governance matters from both within 
and outside the Group as appropriate. The ERCC draws 
on a pool of independent consultants for diversified 
views and specific expertise. The ERCC will ensure that 
existing relationships, if any, between the Group and 
its appointed remuneration consultants will not affect 
the independence and objectivity of the remuneration 
consultants. 

The ERCC approves or recommends termination 
payments, retirement payments, gratuities, ex-gratia 
payments, severance payments and other similar 
payments to Senior Management. The ERCC ensures 
that contracts of service for Senior Management contain 
fair and reasonable termination clauses that are not 
overly generous. 

The ERCC also ensures that appropriate recruitment, 
development and succession planning programmes 
are in place for key executive roles, with the objective 
of building strong and sound leadership bench strength 
for long-term sustainability of the business. The ERCC 
conducts, on an annual basis, a succession planning 
review of Senior Management. 

76

Singapore Telecommunications Limited  |  Annual Report 2018The Group CEO, who is not a member of the ERCC, 
may attend meetings of the ERCC but does not 
attend discussions relating to her own performance 
and remuneration. Singtel’s remuneration policy and 
remuneration for Directors and Senior Management are 
discussed in this report from pages 83 to 90. 

The ERCC met five times during the financial year 
ended 31 March 2018.

FINANCE AND INVESTMENT COMMITTEE 

MEMBERSHIP
Simon Israel, committee chairman and  
non-executive Chairman of the Singtel Board
Venky Ganesan, independent non-executive  
Director
Low Check Kian, independent non-executive  
Director

KEY OBJECTIVES
•  Provide advisory support on the development 
of the Singtel Group’s overall strategy and on 
strategic issues for the Singapore and  
international businesses 

•  Consider and approve investments and 

divestments 

•  Review and approve changes in the Singtel 
Group’s investment and treasury policies 

•  Evaluate and approve any financing offers and 

banking facilities and manage the Singtel Group’s 
liabilities in line with the Singtel Board’s policies 
and directives

•  Oversee any on-market share repurchases 

pursuant to Singtel’s share purchase mandate

The terms of reference of the FIC provide that the FIC 
shall comprise at least three Directors, the majority of 
whom shall be independent Directors. Membership of 
the AC and the FIC is mutually exclusive. 

The FIC met four times during the financial year ended 
31 March 2018.

RISK COMMITTEE 

MEMBERSHIP
Teo Swee Lian, committee chairman and  
Independent non-executive Director
Gautam Banerjee, independent non-executive  
Director (appointed on 1 March 2018)
Bobby Chin, independent non-executive Director
Peter Ong, non-executive Director

KEY OBJECTIVES
•  Assist the Board in fulfilling its responsibilities 

in relation to governance of material risks in the 
Group’s business, which include ensuring that 
Management maintains a sound system of risk 
management and internal controls to safeguard 
shareholders’ interests and the Group’s assets,  
and determining the nature and extent of the 
material risks that the Board is willing to take in 
achieving the Group’s strategic objectives

The terms of reference of the RC provide that the RC 
shall comprise at least three members, the majority of 
whom, including the chairman, shall be independent. 
Members of the RC are appointed by the Board, on the 
recommendation of the CGNC. There is at least one 
common member between the RC and the AC. 

The RC reviews the Group’s strategy, policies, 
framework, processes and procedures for the 
identification, measurement, reporting and mitigation of 
material risks in the Group’s business and reports any 
significant matters, findings and recommendations in 
this regard to the Board. 

The RC meets at least three times a year, with additional 
meetings to be convened as deemed necessary by the 
chairman of the RC. The RC met three times during the 
financial year ended 31 March 2018.

77

Corporate GovernanceDIRECTORS’ BOARD COMMITTEE MEMBERSHIPS AND ATTENDANCE AT BOARD COMMITTEE MEETINGS 
DURING THE FINANCIAL YEAR ENDED 31 MARCH 2018 (1) 

Audit
Commitee

Corporate Governance 
and Nominations 
Committee

Executive Resource 
and Compensation 
Committee

Finance and Investment 
Committee

Risk
Committee

Number of 
Meetings 
Held

Number 
of Meetings 
Attended

Number of 
Meetings 
Held

Number 
of Meetings 
Attended

Number of 
Meetings 
Held

Number 
of Meetings 
Attended

Number of 
Meetings 
Held

Number 
of Meetings 
Attended

Number of 
Meetings 
Held

Number 
of Meetings 
Attended

–
5
–
5
–
–
–
5
5
5

–
5
–
5
–
–
–
5
5
5

2
2
–
–
–
2
–
2
–
–

2
2
–
–
–
2
–
2
–
–

5
5
–
–
–
–
5
–
–
5

5
5
–
–
–
–
5
–
–
5

4
4
–
–
4
4
–
–
–
–

4
4
–
–
4
4
–
–
–
–

–
3
1
3
–
–
–
–
3
3

–
3
1
3
–
–
–
–
3
3

Name of Director

Simon Israel
Chua Sock Koong (2)
Gautam Banerjee (3)
Bobby Chin 
Venky Ganesan 
Low Check Kian
Peter Mason AM
Christina Ong 
Peter Ong 
Teo Swee Lian (4)

Notes:
( 1 )     Refers to meetings held/attended while each Director was in office. 
(2)     Ms Chua Sock Koong is not a member of the Board committees, although she attended meetings of the committees as appropriate. 
(3)     Mr Gautam Banerjee was appointed a member of the Audit Committee and the Risk Committee on 1 March 2018. 
(4)     Ms Teo Swee Lian was appointed to the Corporate Governance and Nominations Committee and ceased to be a member of the Audit Committee on 1 March 2018. 

MANAGEMENT COMMITTEE 

In addition to the five Board Committees and the 
two advisory bodies, Singtel has a Management 
Committee that comprises the Group CEO, CEO 
Group Enterprise, CEO Consumer Australia, CEO 
Consumer Singapore, CEO International, CEO 
Group Digital Life, Group Chief Corporate Officer, 
Group CFO, Group Chief Human Resources Officer, 
Group Chief Information Officer and Group Chief 
Technology Officer. 

The Management Committee meets every week 
to review and direct Management on operational 
policies and activities.

ADVISORY COMMITTEE/PANEL

Singtel has two advisory bodies, the Optus Advisory 
Committee (OAC) and the Technology Advisory 
Panel (TAP). 

The OAC comprises both Board and non-Board 
members, namely Mr Peter Mason AM (committee 
chairman), Ms Chua Sock Koong, Mr David Gonski, 
Mr Simon Israel, Mrs Gail Kelly, Mr John Morschel 
and Mr Paul O’Sullivan. The OAC reviews strategic 
business issues relating to the Australian business. 

The TAP advises the Board on developments, issues 
and emerging trends in the technology space. The 
TAP comprises distinguished international members 
and is chaired by Mr Venky Ganesan. The other 
members of the Panel are Mr Koh Boon Hwee and 
Mr Zorawar Biri Singh.

ACCOUNTABILITY AND AUDIT 
Accountability
Singtel recognises the importance of providing the 
Board with accurate and relevant information on a 
timely basis. Hence, Board members receive monthly 
financial and business reports from Management. 
Such reports compare Singtel’s actual performance 
against the budget, and highlight key business drivers/
indicators and any major issues that are relevant to 
Singtel’s performance, position and prospects.

For the financial year ended 31 March 2018, Singtel’s 
Group CEO and Group CFO have provided a written 
confirmation to the Board on the integrity of Singtel’s 
financial statements and on the adequacy and 
effectiveness of Singtel’s risk management and internal 
control systems, addressing financial, operational and 
compliance risks including information technology risks. 
This certification covers Singtel and the subsidiaries that 
are under Singtel’s management control.

Internal Audit (IA)
Singtel IA comprises a team of 58 staff members, 
including the Group Chief Internal Auditor, who 
reports to the AC functionally and to the Group 
CEO administratively. Singtel IA is a member of the 
Singapore chapter of the Institute of Internal Auditors 
(IIA) and adopts the International Standards for the 
Professional Practice of Internal Auditing (the IIA 
Standards) laid down in the International Professional 
Practices Framework issued by the IIA. Singtel IA 
successfully completed its external Quality Assurance 
Review in 2014 and continues to meet or exceed the IIA 
Standards in all key aspects.

78

Singapore Telecommunications Limited  |  Annual Report 2018Singtel IA adopts a risk-based approach in formulating 
the annual audit plan that aligns its activities to the key 
strategies and risks across the Group’s business. This 
plan is reviewed and approved by the AC. The reviews 
performed by Singtel IA are aimed at assisting the 
Board in promoting sound risk management, robust 
internal controls and good corporate governance, 
through assessing the design and operating 
effectiveness of controls that govern key business 
processes and risks identified in the overall risk 
framework of the Group. Singtel IA’s reviews also focus 
on compliance with Singtel’s policies, procedures and 
regulatory responsibilities, performed in the context 
of financial and operational, revenue assurance and 
information systems reviews.

Singtel IA works closely with Management in its 
internal consulting and control advisory role to promote 
effective risk management, robust internal control and 
good governance practices in the development of 
new products/services, and implementation of new/
enhanced systems and processes. Singtel IA also 
collaborates with the internal audit functions of Singtel’s 
regional associates to promote joint reviews and the 
sharing of knowledge and/or best practices.

To ensure that the internal audits are performed 
effectively, Singtel IA recruits and employs suitably 
qualified professional staff with the requisite skill 
sets and experience. Singtel IA provides training and 
development opportunities for its staff to ensure their 
technical knowledge and skill sets remain current and 
relevant.

External Auditor
The Board is responsible for the initial appointment 
of external auditor. Shareholders then approve the 
appointment at Singtel’s AGM. The external auditor 
holds office until its removal or resignation. The AC 
assesses the external auditor based on factors such 
as the performance and quality of its audit and the 
independence of the auditor, and recommends its 
appointment to the Board. Pursuant to the requirements 
of the SGX, an audit partner may only be in charge of 
a maximum of five consecutive annual audits and may 
then return after two years. Deloitte & Touche LLP has 
met this requirement, and the current Deloitte & Touche 
LLP audit partner for Singtel took over from the previous 
audit partner with effect from 29 July 2016. Singtel has 
complied with Rules 712 and 715 of the Listing Manual 
issued by SGX in relation to the appointment of its 
auditor. 

In order to maintain the independence of the external 
auditor, Singtel has developed policies regarding the 
types of non-audit services that the external auditor can 

79

provide to the Singtel Group and the related approval 
processes. The AC has also reviewed the non-audit 
services provided by the external auditor during the 
financial year and the fees paid for such services. The 
AC is satisfied that the independence of the external 
auditor has not been impaired by the provision of 
those services. The external auditor has also provided 
confirmation of its independence to the AC.

Fees for Deloitte & Touche services for the financial 
year ended 31 March 2018

Audit services
Non-audit services 
(including audit-related services)

(S$ Mil)

4.8

0.8

Risk Management and Internal Control
The Board has overall responsibility for the governance 
of risk and exercises oversight of the material risks in 
the Group’s business. During the financial year ended 
31 March 2018, the Risk Committee (RC) assisted the 
Board in the oversight of the Group’s risk profile and 
policies, adequacy and effectiveness of the Group’s 
risk management system including the framework 
and process for the identification and management of 
significant risks, and reports to the Board on material 
matters, findings and recommendations pertaining 
to risk management. The AC provides oversight of 
the financial reporting risk and the adequacy and 
effectiveness of the Group’s internal control and 
compliance systems. 

The Board has approved a Group Risk Framework 
for the identification of key risks within the business. 
This Framework defines 30 categories of risks ranging 
from environmental to operational and management 
decision-making risks. The Group’s risk management 
and internal control framework is aligned with the 
ISO 31000:2009 Risk Management framework and 
the Committee of Sponsoring Organisations of the 
Treadway Commission (COSO) Internal Controls 
Integrated Framework. Major incidents and violations, 
if any, are reported to the Board to facilitate the Board’s 
oversight of the effectiveness of crisis management 
and the adequacy of mitigating measures taken by 
Management to address the underlying risks.

The identification and day-to-day management of risks 
rest with Management. Management is responsible 
for the effective implementation of risk management 
strategy, policies and processes to facilitate the 
achievement of business plans and goals within the risk 
tolerance established by the Board. Key business risks 
are proactively identified, addressed and reviewed on 
an on-going basis. 

Corporate GovernanceThe Risk Management Committee, including relevant 
members from the Senior Management team, is 
responsible for setting the direction of corporate risk 
management and monitoring the implementation of 
risk management policies and procedures including the 
adequacy of the Group’s insurance programme. The 
Risk Management Committee reports to the RC on a 
regular basis. 

The Board has established a Risk Appetite Statement 
and Risk Tolerance Framework to provide guidance to 
the Management on key risk parameters. The significant 
risks in the Group’s business, including mitigating 
measures, were also reviewed by the RC on a regular 
basis and reported to the Board. Risk registers are 
maintained by the business and operational units which 
identify the key risks facing the Group’s business and 
the internal controls in place to manage those risks. 
The RC had reviewed the Group’s risk management 
framework during the reporting period and was satisfied 
that it continued to be sound. 

Internal and external auditors conduct audits that involve 
testing the effectiveness of the material internal control 
systems within the Singtel Group, relating to financial, 
operational and compliance risks. Any material non-
compliance or lapses in internal controls are reported to 
the AC, including the remedial measures recommended 
to address the risks identified. The AC also reviews 
the adequacy and timeliness of the actions taken by 
Management in response to the recommendations 
made by the internal and external auditors. Control 
self-assessments in key areas of the Group’s operations 
are conducted by Management on a periodic basis to 
evaluate the adequacy and effectiveness of the risk 
management and internal control systems, including 
quarterly and annual certifications by Management to 
the AC and the Board respectively on the integrity of 
financial reporting and the adequacy and effectiveness 
of the risk management, internal control and compliance  
systems (1).

The Group has put in place a Board Escalation Process 
where major incidents and violations including major/
material operational loss events and potential breaches 
of laws and regulations by the Company and/or its key 
officers, are required to be reported by Management 
and/or Internal Audit to the Board immediately to 
facilitate the Board’s oversight of crisis management 
and adequacy and effectiveness of follow-up actions 
taken by Management. Through this process, the Board 
has been kept informed promptly of any incidents with 
potential material financial, operational, compliance and 
technology risk impact. 

The Board has received assurance from the Group CEO 
and Group CFO on the effectiveness of the Group’s risk 
management and internal control systems, and that the 
financial records have been properly maintained and 
the financial statements give a true and fair view of the 
Group’s operations and financial position. 

Based on the internal controls established and maintained 
by the Group, work performed by internal and external 
auditors, and reviews performed by Management 
and various Board Committees, the Board, with the 
concurrence of the AC, is of the opinion that the Group’s 
risk management and internal control framework and 
systems were adequate and effective as at 31 March 2018 
to address financial, operational and compliance risks, 
including information technology risk, which the Group 
considers relevant and material to its operations. 

The systems of risk management and internal control 
established by Management provides reasonable, but 
not absolute, assurance that Singtel will not be adversely 
affected by any event that can be reasonably foreseen as 
it strives to achieve its business objectives. However, the 
Board also notes that no system of risk management and 
internal control can provide absolute assurance in this 
regard, or absolute assurance against poor judgement 
in decision-making, human error, losses, fraud or other 
irregularities. 

Further details of the Group’s Risk Management 
Philosophy and Approach can be found on pages 99 to 
107.

Note:
( 1 )     Separate ACs had also been set up for significant subsidiaries within the Singtel 

Group such as Trustwave and Amobee, to assist the Board in its responsibility 
for overseeing the quality and integrity of the accounting and controls, auditing 
and reporting practices of the Company and its compliance with the legal and 
regulatory requirements.

SHAREHOLDER RIGHTS AND RESPONSIBILITIES
Communication with Shareholders 
Singtel is committed to delivering high standards 
of corporate disclosure and transparency in our 
communications with shareholders, analysts and other 
stakeholders in the investment community. Singtel 
provides timely, regular and relevant information 
regarding the Group’s strategy, performance and 
prospects to aid shareholders and investors in their 
investment decisions. 

Over the years, Singtel has won recognition from 
investors, academia and finance media for its strong 
emphasis on corporate governance and proactive 
approach to shareholder communication and 
engagement. It has also been rated highly on various 
indices and rankings for its sustainability practices.

80

Singapore Telecommunications Limited  |  Annual Report 2018The Singtel Investor Relations (IR) website is a key 
resource of information for the investment community. 
It contains a wealth of investor-related information on 
Singtel, including investor presentations, webcasts 
of earnings presentations, transcripts of earnings 
conference calls, annual reports, upcoming events, 
shares and dividend information and investor 
factsheets. 

Singtel makes timely disclosures of any new material 
information to the SGX. These filings are also posted 
on the Singtel IR website, allowing investors to keep 
abreast of strategic and operational developments.

Singtel reports financial results on a quarterly basis, 
typically within 45 days from the end of each financial 
quarter. The quarterly financial results announcements 
contain detailed financial disclosures and in-depth 
analyses of key value-drivers and metrics for the 
Group’s businesses. 

Singtel also provides financial guidance for its 
businesses at the beginning of each financial year and 
affirms or updates the guidance to accurately reflect 
prevailing market conditions at the end of each quarter. 

Singtel proactively engages shareholders and the 
investment community through group and one-on-one 
meetings, conference calls, email communications, 
investor conferences and roadshows. This year, Singtel 
engaged over 500 investors in more than 200 meetings 
and conference calls in Singapore, London, Japan, New 
York and other global financial centres. While these 
meetings are largely undertaken by Singtel’s Senior 
Management, the Chairman and certain Board members 
also meet with investors every year. 

To ensure a two-way flow of information, Singtel 
commissions an annual survey of investors’ perceptions 
to solicit feedback from the investment community 
on a range of strategic and topical issues. The survey 
provides the Singtel Board and Management with 
invaluable insights into investors’ views of the Group 
and helps Singtel identify areas for improvement in 
investor communication. 

Shareholder Meetings 
Singtel strongly encourages and supports shareholder 
participation at general meetings. Singtel delivers 
the Notice of AGM and related information a month 
ahead, providing sufficient time for shareholders to 
review the Notice of AGM and appoint proxies to 
attend the AGM if they wish. The Notice of AGM is 
also advertised in The Straits Times for the benefit of 
shareholders. Singtel holds its general meetings at 
central locations in Singapore with convenient access 

81

to public transportation. Under Singtel’s Constitution 
and pursuant to the Companies Act, the Central 
Provident Fund Board and relevant intermediaries (as 
defined in the Companies Act, Chapter 50) may appoint 
more than two proxies to attend and vote on their 
behalf. A registered shareholder who is not a relevant 
intermediary may appoint up to two proxies.  There 
are separate resolutions at general meetings on each 
substantially separate issue.  

At each AGM, the Group CEO delivers a presentation 
to update shareholders on Singtel’s progress over the 
past year. Directors and Senior Management are in 
attendance to address queries and concerns about 
Singtel. Singtel’s external auditor and counsel also 
attend to help address shareholders’ queries relating 
to the conduct of the audit and the auditor’s reports, as 
well as clarify any points of law, regulation or meeting 
procedure that may arise. Shareholders are informed of 
the voting procedures and rules governing the meeting.  
The minutes of all general meetings are posted on 
Singtel’s IR website. The minutes disclose the names of 
the Directors, Senior Management and, where relevant, 
the external auditor and advisors who attended 
the meetings as well as details of the proceedings, 
including the questions raised by shareholders and the 
answers given by the Board/Management.

ELECTRONIC POLL VOTING AT SINGTEL 
GENERAL MEETINGS

All resolutions at Singtel’s general meetings are 
voted on by poll so as to better reflect shareholders’ 
shareholding interests and ensure greater 
transparency. Singtel uses electronic poll voting 
devices to register the votes of shareholders who 
attend the general meetings. 

Singtel appoints an independent external party as 
scrutineer for the electronic poll voting process.  
Prior to the general meeting, the scrutineer will 
review the proxies and the electronic poll voting 
system, and attends at the proxy verification  
process, to ensure that the proxy and poll voting 
information is compiled correctly. During the  
general meeting, the scrutineer attends to ensure 
that the polling process is properly carried out. 

When voting on a resolution has closed, the poll 
voting results, including the number and percentage 
of votes cast for and against the resolution, are 
immediately presented to shareholders. The poll 
voting results are promptly filed with SGX on the 
same day as the meeting.

Corporate GovernanceSecurities Transactions
Singtel has in place a Securities Transactions Policy, 
which provides that Directors and Top Management 
members and persons who are in attendance at 
Board and Top Management meetings (Key Officers) 
should not deal in Singtel securities during the period 
commencing two weeks before the announcement of 
Singtel’s financial statements for each of the first three 
quarters of the financial year, and during the period 
commencing one month before the announcement of 
the financial statements for the full financial year and 
ending on the date of the announcement of the relevant 
results. In addition, employees who are involved in 
the preparation of the Group’s financial statements 
should not deal in Singtel securities during the period 
commencing six weeks before the announcement of 
financial results each quarter. The policy also provides 
that any of the above persons who is privy to any 
material unpublished price-sensitive information 
relating to the Singtel Group should not trade in 
Singtel securities until the information is appropriately 
disseminated to the market, regardless of whether or 
not it is during the abovementioned “closed” periods 
for trading in Singtel securities. The Company Secretary 
sends quarterly reminders of the requirements under 
the policy and the relevant laws and regulations to the 
Directors and Management. 

A Director is required to notify Singtel of his interest in 
Singtel securities within two business days after (a) the 
date on which he becomes a Director or (b) the date 
on which he acquires an interest in Singtel securities. A 
Director is also required to notify Singtel of any change 
in his interests in Singtel securities within two business 
days after he becomes aware of such change. Singtel 
will file such disclosure with SGX within one business 
day of receiving notification from the Director. 

The Securities Transactions Policy also discourages 
trading on short-term considerations and reminds 
Directors and officers of their obligations under insider 
trading laws. Directors and officers of the Group wishing 
to deal in Singtel securities during a closed period must 
secure prior written approval of the Chairman (in the 
case of Directors of Singtel), the Lead Independent 
Director (in the case of the Chairman) or the Group CEO 
(in the case of directors of Singtel subsidiaries and Key 
Officers). Requests for written approval must contain 
a full explanation of the exceptional circumstances 
and proposed dealing. If approval is granted, trading 
must be undertaken in accordance with the limits set 
out in the written approval. Directors are to inform the 
Company Secretary before trading in Singtel securities. 
The Board is kept informed when a Director trades in 
Singtel securities. A summary of Singtel’s Securities 

Transactions Policy is available in the Corporate 
Governance section of the Singtel corporate website.

Pursuant to the SGX Listing Manual, the Singtel Group 
has put in place a policy relating to the maintenance 
of a list(s) of persons who are privy to price sensitive 
information relating to Singtel. Under the policy, persons 
who are to be included in the privy persons list will 
be reminded not to trade in Singtel securities while in 
possession of unpublished price-sensitive information. 

In relation to the shares of other companies, Directors 
are prohibited from trading in shares of Singtel’s listed 
associates when in possession of material price-
sensitive information relating to such associates. 
Directors are also to refrain from having any direct or 
indirect financial interest in Singtel’s competitors that 
might or might appear to create a conflict of interest or 
affect the decisions Directors make on behalf of Singtel.

Continuous Disclosure 
There are formal policies and procedures to ensure 
that Singtel complies with its disclosure obligations 
under the listing rules of the SGX. A Market Disclosure 
Committee is responsible for Singtel’s Market 
Disclosure Policy. The policy contains guidelines and 
procedures for internal reporting and decision-making 
with regard to the disclosure of material information.

No Material Contracts
Since the end of the previous financial year ended  
31 March 2017, no material contracts involving the 
interest of the Group CEO, any Director, or the 
controlling shareholder, Temasek Holdings (Private) 
Limited, has been entered into by Singtel or any of its 
subsidiaries, and no such contract subsisted as at  
31 March 2018, save as may be disclosed on SGXNet or 
herein.

Interested Person Transactions
As required by the SGX Listing Rules, details of 
interested person transactions (IPT) entered into by the 
Group are disclosed in this Annual Report on page 250. 
Singtel Internal Audit regularly reviews the IPT entered 
into by the Singtel Group to verify the accuracy and 
completeness of the IPT disclosure and to determine 
whether the IPT reporting requirements under the 
SGX listing rules have been adhered to. The report is 
submitted to the Audit Committee for review. Under the 
SGX listing rules, where any IPT requires shareholders’ 
approval, the interested person will abstain from 
voting and the decision will be made by disinterested 
shareholders.

The Board has adopted a policy that there should be no 
loans to Directors, except for loans to fund expenditure 

82

Singapore Telecommunications Limited  |  Annual Report 2018to defend Directors in legal or regulatory proceedings, 
as permitted under the Companies Act. As at 31 March 
2018, there were no loans granted to Directors. 

Codes of Conduct and Practice
The Board has adopted a Code of Conduct and Ethics 
as a means to guide the Directors on the areas of 
ethical risk, and help nurture an environment where 
integrity and accountability are key. The Code of 
Conduct and Ethics sets out the Board’s principles 
on dealing with conflicts of interest, maintaining 
confidentiality, compliance with laws and regulations 
and fair dealing. The Board also has a Directors’ Manual, 
which sets out specific Board governance policies and 
practices and the Directors’ duties and responsibilities. 
In addition, Singtel has a code of internal corporate 
governance practices, policy statements and standards 
(Singtel Code), and makes this code available to Board 
members as well as employees of the Group. The 
principles, policies, standards and practices in the 
Code of Conduct and Ethics, the Directors’ Manual and 
the Singtel Code are intended to enhance investor 
confidence and rapport, and to ensure that decision-
making is properly carried out in the best interests 
of the Group. The Code of Conduct and Ethics, the 
Directors’ Manual and the Singtel Code are maintained 
by the Company Secretary and are provided to 
Directors when they are appointed to the Board. 

Singtel also has a strict code of conduct that applies 
to all employees. The code sets out principles to 
guide employees in carrying out their duties and 
responsibilities to the highest standards of personal 
and corporate integrity when dealing with Singtel, its 
competitors, customers, suppliers and the community. 
The code covers areas such as equal opportunity 
employment practices, workplace health and safety, 
conduct in the workplace, business conduct, protection 
of Singtel’s assets, proprietary information and 
intellectual property, data protection, confidentiality, 
conflict of interest, and non-solicitation of customers 
and employees. The code is posted on Singtel’s internal 
website and a summarised version is accessible from 
the Singtel corporate website. Policies and standards 
are clearly stipulated to guide employees in carrying out 
their daily tasks. 

Singtel has established an escalation process so 
that the Board of Directors, Senior Management, and 
internal and external auditors are kept informed of 
corporate crises in a timely manner, according to their 
severity. Such crises may include violations of the code 
of conduct and/or applicable laws and regulations, as 
well as loss events that have or are expected to have a 
significant impact, financial or otherwise, on the Group’s 
business and operations.

83

Whistle-Blower Policy
The Group is committed to a high standard of ethical 
conduct and adopts a zero tolerance approach to fraud 
and corruption. 

Singtel undertakes to investigate all complaints of 
suspected fraud and corruption in an objective manner, 
and has a whistle-blower policy and procedures that 
provide employees and external parties with well-
defined and accessible channels within the Group. 
These include a direct channel to Singtel IA and whistle-
blower hotline services independently managed by 
external service providers, for reporting suspected 
fraud, corruption, unethical practices or other similar 
matters which may cause financial loss to the Group or 
damage the Group’s reputation. The policy is aimed at 
encouraging the reporting of such matters in good faith, 
with the confidence that employees and other persons 
making such reports will be treated fairly and, to the 
extent possible, protected from reprisal. 

On an ongoing basis, the whistle-blower policy 
is covered during staff training and periodic 
communication to all staff as part of the Group’s 
efforts to promote strong ethical values and fraud 
and control awareness. All whistle-blower complaints 
are investigated independently by Singtel IA or an 
independent investigation committee as appropriate, 
and the outcome of each investigation is reported to the 
AC.

REMUNERATION
The broad principles that guide the ERCC in its 
administration of fees, benefits, remuneration and 
incentives for the Board of Directors and Senior 
Management are set out below. 

Remuneration of Non-Executive Directors 
Singtel’s Group CEO is an Executive Director and is, 
therefore, remunerated as part of Senior Management. 
She does not receive Directors’ fees. 

The ERCC recommends the non-executive Directors’ 
fees for the Board’s endorsement and approval by 
shareholders. As Singtel has diverse and complex 
operations and investments internationally and is 
not just a Singapore-based company, the fees are 
benchmarked against fees paid by other comparable 
companies in Singapore and Australia, as well as 
comparable companies in other countries. 

Singtel seeks shareholders’ approval at the AGM for 
Directors’ fees for the current financial year so that 
Directors’ fees can be paid on a half-yearly basis in 
arrears. No Director decides his own fees. 

Corporate GovernanceTravel allowance for Board 
meetings and Board Committee 
meetings that do not coincide 
with Board meetings (per day 
of travel required to attend 
meeting)

S$3,000

The aggregate Directors’ fees paid to non-executive 
Directors for the financial year ended 31 March 2018 was 
S$2,309,334 (details are set out in the table below).

Name of Director

Simon Israel (1) 
Gautam Banerjee (2)
Bobby Chin 
Venky Ganesan (3) 
Low Check Kian (4) 
Peter Mason AM (5) 
Christina Ong 
Peter Ong (6) 
Teo Swee Lian 
Total

Director’s Fees 
(S$)

960,000 

20,167

203,000

195,000

188,000

175,000

178,000

178,000

212,167

2,309,334

Notes: 
( 1 )     In addition to the Director’s fees set out above, Mr Simon Israel also received 

car-related benefits (S$20,446).

(2)     Mr Gautam Banerjee was appointed as a Director and a member of the Audit 

Committee and the Risk Committee on 1 March 2018.

(3)     In addition to the Director’s fees set out above, Mr Venky Ganesan received 

fees of US$70,833 for the financial year ended 31 March 2018 in his capacity as 
the Chairman of the Technology Advisory Panel.

(4)     In addition to the Director’s fees set out above, Mr Low Check Kian received 

fees of S$35,000 for the financial year ended 31 March 2018 in his capacity as 
a director of Singtel Innov8 Pte. Ltd.

(5)     In addition to the Director’s fees set out above, Mr Peter Mason AM received 

fees of S$35,000 for the financial year ended 31 March 2018 in his capacity as 
a member of the Optus Advisory Committee.

(6)     Mr Peter Ong was a Singapore public sector Director prior to 1 September 2017. 

Fees for the period 1 April 2017 to 31 August 2017 for Mr Ong were processed 
in accordance with the framework of the Singapore Directorship and 
Consultancy Appointments Council.

No employee of the Group who is an immediate family 
member of a Director was paid remuneration that 
exceeded S$50,000 during the financial year ended  
31 March 2018.

Save as mentioned below, there are no retirement 
benefit schemes or share-based compensation 
schemes in place for non-executive Directors. 

To align Directors with shareholders’ interests, Directors 
are encouraged to acquire Singtel shares each year 
from the open market until they hold the equivalent 
of one year’s fees in shares, and to continue to hold 
the equivalent of one year’s fees in shares while they 
remain on the Board. 

Financial Year Ended 31 March 2018
For the financial year ended 31 March 2018, the 
Chairman received an all-inclusive fee of S$960,000 
(excluding car-related benefits). The fee was paid 
approximately two-thirds in cash and approximately 
one-third in Singtel shares. No separate retainer fees, 
committee fees, attendance fees or travel allowance 
were paid to the Chairman. 

The fees for non-executive Directors (other than the 
Chairman) comprised a basic retainer fee, additional 
fees for appointment to Board Committees, attendance 
fees for ad hoc Board meetings and a travel allowance 
for Directors who were required to travel out of their 
country or city of residence to attend Board meetings 
and Board Committee meetings that did not coincide 
with Board meetings. The framework for determining 
non-executive Directors’ fees for the financial year 
ended 31 March 2018 was the same as the framework 
for the previous financial year and is set out below:

Basic Retainer Fee
Board Chairman
Director

S$960,000 per annum
S$ 1 1 0,000 per annum

S$60,000 per annum
S$35,000 per annum

Fee for appointment to Audit 
Committee and Finance and 
Investment Committee
Committee chairman 
Committee member

Fee for appointment to Executive 
Resource and Compensation 
Committee
Committee chairman
Committee member

Fee for appointment to any other 
Board Committee
Committee chairman
Committee member

S$45,000 per annum
S$25,000 per annum

S$35,000 per annum
S$25,000 per annum

Financial Year Ending 31 March 2019
For the financial year ending 31 March 2019, it is 
proposed that aggregate fees of up to S$2,950,000 be 
paid to the Directors, which is the same as the amount 
approved by shareholders for the financial year ended  
31 March 2018. The proposed framework for Directors’ 
fees for the financial year ending 31 March 2019 is the 
same as that for the financial year ended 31 March 2018.

Attendance Fee per Ad Hoc 
Board meeting

S$2,000

84

Singapore Telecommunications Limited  |  Annual Report 2018REMUNERATION OF EXECUTIVE DIRECTOR 
AND SENIOR MANAGEMENT

The remuneration framework and policy is  
designed to support the implementation of the 
Group’s strategy and to enhance shareholder value. 
The following are our guiding principles for  
remuneration to Senior Management:

ALIGNMENT WITH SHAREHOLDERS’ INTERESTS
•  Align interests between management and 

shareholders

•  Select appropriate performance metrics for  

annual and long-term incentive plans to support 
business strategies and ongoing enhancement  
of shareholder value

•  Allow for performance-related clawback if long- 
term sustained performance targets are not met
•  Establish sound and structured funding to ensure 

affordability

FAIR AND APPROPRIATE
•  Offer competitive packages to attract and retain 

highly experienced and talented individuals
•  Link a significant proportion of remuneration to 

performance, both on an annual and long-term basis
•  Structure a significant but appropriate proportion  

of remuneration to be at risk with symmetric  
upside and downside

PAY-FOR-PERFORMANCE
•  Measure performance based on a holistic  

balanced scorecard approach, comprising both 
financial and non-financial metrics

•  Ensure targets are appropriately set for  

threshold, target, stretch and exceptional 
performance levels 

EFFECTIVE IMPLEMENTATION
•  Ensure link between performance and 

remuneration is clear and the framework is  
simple for employees to understand
•  Meet rigorous corporate governance  

requirements

During the year, the ERCC engaged Aon Hewitt 
Singapore Pte Ltd (Aon Hewitt) to provide valuation 
and vesting computation for grants awarded under the 
Singtel Performance Share Plan 2012, and to review 
the overall remuneration framework and key elements 
of the performance-related remuneration components 
to ensure continued relevance to strategic business 
objectives and alignment with market practices. The 
ERCC also engaged Mercer (Singapore) Pte Ltd (Mercer) 
to conduct Executive Remuneration Benchmarking 
for Senior Management. Aon Hewitt, Mercer and their 
consultants are independent and not related to the 
Group or any of its Directors.

Singtel may, under special circumstances, compensate 
Senior Management for their past contributions when 
their services are no longer needed, in line with market 
practice; for example, due to redundancies arising from 
reorganisation or restructuring of the Group.

If an executive is involved in misconduct or fraud, 
resulting in financial loss to the company, the ERCC 
has the discretion not to award and to forfeit incentive 
components of the executive’s remuneration, to the 
extent that such award or incentive has not been 
released or disbursed.

Remuneration Structure
The remuneration structure is designed such that the 
percentage of the performance-related components of 
Senior Management’s remuneration increases as they 
move up the organisation. 

On an annual basis, the ERCC proposes the 
compensation of the Group CEO, CEOs, Group Chief 
Corporate Officer and Group CFO for the Board’s 
approval and approves compensation for the other 
Senior Management.

The key remuneration components for Senior 
Management are summarised below:

TOTAL REMUNERATION

FIXED COMPONENTS

The ERCC recognises that the Group operates in 
a multinational and multifaceted environment and 
reviews remuneration through a process that considers 
Group, business unit and individual performance 
as well as relevant comparative remuneration in 
the market. The performance evaluation for Senior 
Management has been conducted in accordance with 
the above considerations.

BASE SALARY

BENEFITS & PROVIDENT/ 
SUPERANNUATION

PERFORMANCE-RELATED 
COMPONENTS

VARIABLE BONUS

LONG-TERM 
INCENTIVES

85

Corporate Governance 
FIXED COMPONENTS

PERFORMANCE-RELATED COMPONENTS

BASE SALARY
The base salary reflects the market worth of the job 
but may vary with responsibilities, qualifications and 
the experience that the individual brings to the role.

Policy
This is approved by the Board based on ERCC’s 
recommendation and reviewed annually against:
(i)   peers of similar financial size and complexity to 

the Group; 

(ii)  pay and conditions across the Group; and
(iii)  the executive’s contribution and experience.

In Australia, consistent with local market practice, 
executives may opt for a portion of their salaries 
to be received in benefits-in-kind, such as 
superannuation contributions and motor vehicles, 
while maintaining the same overall cost to the 
company.

Performance Linkage
The base salary is linked to each executive’s 
sustained long-term performance.

BENEFITS & PROVIDENT/SUPERANNUATION FUND
Benefits and Provident/Superannuation Fund 
provided are in line with local market practices and 
legislative requirements.

Policy
Singtel contributes towards the Singapore Central 
Provident Fund or the Optus Superannuation Fund 
or any other chosen fund, as applicable. Singtel 
also provides in-company medical scheme, club 
membership, employee discounts and other benefits 
that may incur Australian Fringe Benefits Tax, where 
applicable.

Participation in benefits is dependent on the country 
in which the executive is located. For expatriates 
located away from home, additional benefits such 
as accommodation, children’s education and tax 
equalisation may be provided.

Performance Linkage 
Benefits and Provident/Superannuation Fund are not 
directly linked to performance.

VARIABLE BONUS
Variable Bonus comprises the Performance Bonus 
and the Value Sharing Bonus. It provides a variable 
level of remuneration dependent on short-term 
performance against the annual plan, as well as 
relevant market remuneration benchmarks. 

Policy
Performance Bonus
Performance Bonus (PB) is designed to support 
the Group’s business strategy and the ongoing 
enhancement of shareholder value through the 
delivery of annual Financial, Strategy, Operational 
and People objectives. On an individual level, the PB 
will vary according to the actual achievement against 
Group, business unit and individual performance 
objectives.

Value Sharing Bonus
A portion of Senior Management’s annual 
remuneration is tied to the Economic Profit (EP) 
performance of the Group in the form of the Value 
Sharing Bonus (VSB). VSB is used to defer their 
bonuses over a time horizon to ensure alignment 
with sustainable value creation for the shareholders 
over the longer term. VSB is also extended to 
Top Management executives, who are senior 
executives below the Senior Management level, 
holding positions equivalent to Vice President in the 
organisation.

Performance Linkage
Performance Bonus
The objectives are aligned to the Annual Operating 
Plan and are different for each executive. They are 
assessed on the same principles across four broad 
categories of targets: Financial, Strategy, Operational 
and People. Weightings are assigned to the targets 
to encourage a balanced performance and to avoid 
over-emphasis on any one measure. People targets 
comprise leadership competencies, core values, 
people development and staff engagement. In 
addition, the executives are assessed on teamwork 
and collaboration across the Group.

Value Sharing Bonus
A “VSB bank” is created for each executive to hold  
the VSB allocated to him or her in any year. One-
third of the “bank” balance would be paid out in 
cash provided it is positive. The remaining balance 
will be carried forward and at risk as it is subject 

86

Singapore Telecommunications Limited  |  Annual Report 2018 
to performance-related clawback and could be 
reduced in the event of EP underperformance in the 
future years.

LONG-TERM INCENTIVES
Long-term incentives reinforce the delivery of 
long-term growth and shareholder value to drive 
an ownership culture and retain key talent. These 
are equity awards provisionally granted to Senior 
Management based on performance for the year 
ended 31 March 2018. 

The long-term incentives consist of two types of 
awards – the Restricted Share Award (RSA) and the 
Performance Share Award (PSA) – with grants made 
at the discretion of the ERCC. The RSA is granted 
to a broader group of executives while the PSA is 
granted to Senior and Top Management.

Policy
The number of shares awarded under RSA and 
PSA is determined using the valuation of the 
shares based on a Monte-Carlo simulation. The 
RSA share awards have a service condition, while 
the PSA share awards are conditional upon the 
achievement of predetermined performance targets 
over the performance period. The PSA performance 
conditions were chosen as they are key drivers 
of shareholder value creation and aligned to the 
Group’s business objectives. These performance 
conditions and targets are approved by the ERCC at 
the beginning of the performance period. 

A significant portion of the remuneration package 
for our Senior Management is delivered in Singtel 
shares to ensure that their interests are aligned 
with shareholders. In particular, the long-term 
incentives mix is more heavily weighted toward 
PSA for more senior executives to increase focus 
on shareholder returns. This is further supported 
by significant shareholding requirements in which 
they are required to build up and retain at least the 
equivalent of two times their annual base salary in 
shares. Group CEO is expected to hold at least the 
equivalent of three times her annual base salary as 
shareholding.

Special provisions for vesting and lapsing of 
awards apply for events such as the termination of 
employment, misconduct, retirement and any other 
events approved by the ERCC. Upon occurrence 
of any of the events, the ERCC will consider, at its 
discretion, whether or not to release any award, 
and will take into account circumstances on a 

87

case-by-case basis, including (but not limited to) 
the contributions made by the employee. Singtel 
employees are prohibited from entering into 
transactions in associated products which limit 
the economic risk of participating in unvested 
awards under Singtel’s equity-based remuneration 
schemes.

Performance Linkage
Restricted Share Award (RSA)
With effect from the June 2018 grant, RSA vesting 
will no longer be conditional on Singtel Group’s 
Net Profit After Tax (NPAT) and Free Cash Flow 
(FCF).  Instead, 50% of the 2018 RSA will vest two 
years from grant date and 50% will vest three 
years from grant date, subject to the following 
conditions:

•  Continued employment with the Singtel Group; 

and

•  Maintaining a satisfactory performance rating 

for the financial year preceding each tranche of 
vesting.

Performance Share Award (PSA)
The PSA has a three-year performance period 
from 1 April 2018 to 31 March 2021. With effect 
from the June 2018 grant, vesting of shares 
is dependent on the following performance 
conditions, subject to the approval of the ERCC:

•  40% based on Singtel Group’s Reported NPAT – 
Reported NPAT achieved against predetermined 
targets; and

•  60% based on Singtel Group’s Absolute Total 
Shareholder Return (Absolute TSR) – Absolute 
TSR achieved against predetermined targets.

The vesting schedule for PSA granted in June 
2018 is shown in Figure A.

Special Share Award (SSA)
In recognition of the value created from the 
development and operation of Singapore’s fibre 
network infrastructure and the successful IPO of 
NetLink Trust in 2017, a one-time cash award will 
be given in July 2018 to all our regular staff in 
Singapore. Senior Management will receive SSA 
where shares are subject to a two-year holding 
period. In January 2018, Singtel shareholders 
received a special dividend paid out of the NLT 
IPO proceeds.

Corporate GovernanceFigure A: Performance Share Award (PSA) Vesting Schedule

Reported Group NPAT (40%)

Absolute TSR (60%)

Performance

Vesting Level (1 )

Performance

Vesting Level (1)

Exceptional
Target
Threshold
Below Threshold

150%
100%
50%
0%

Stretch
Target
Threshold
Below Threshold

150%
100%
50%
0%

Note:
( 1 )     For achievement between these performance levels, the percentage of shares that will vest under this tranche would vary accordingly.

Remuneration of Key Management 
For the financial year ended 31 March 2018, there were no termination, retirement and post-employment benefits 
granted to Directors and Key Management.

Remuneration of Executive Director
Summary compensation table for Group CEO (Chua Sock Koong) for the financial year ended 31 March 2018:

Name

Chua Sock Koong

Earned
Paid out

Fixed 
Remuneration
(S$)

1,647,096

(1)

Variable Bonus
(S$)

(2)

Provident Fund
(S$)

(3)

Benefits
(S$)

(4)

4,369,116

4,201,414

12,600

79,392

Total Cash & 
Benefits
(S$)

(5)

6,108,204

5,940,502

Performance shares granted, vested and lapsed for Ms Chua as at 31 March 2018 are as follows:

2015 Awards

2016 Awards

2017 Awards (8) 

2018 Awards (9)

2015 Awards

2016 Awards (8)

2017 Awards (8)

2018 Awards (9)

Restricted Share Award (RSA) (6)

Granted 
(no. of shares)

Vested
(no. of shares)

Lapsed
(no. of shares)

Released

Date

(no. of shares)

84,060

109,278

201,331

273,408

–

–

382,987

396,550

54,639

54,639

136,704
136,704 (7)

1-Jun-17

1-Jun-18

1-Jun-18

3-Jun-19

3-Jun-19

1-Jun-20

1-Jun-20

1-Jun-21

Performance Share Award (PSA) (6)

Granted 
(no. of shares)

Vested
(no. of shares)

Lapsed
(no. of shares)

Released

Date

(no. of shares)

1,658,980

1,694,657

831,718

633,618

–

1,658,980

1-Jun-18

–

3-Jun-19

1-Jun-20   

1-Jun-21   

Special Share Award (SSA)

Granted (no. of shares)

Sales Moratorium

One-Off Award (10)

497,833

2 years

Notes: 
( 1 )     Fixed Remuneration refers to base salary earned for the financial year ended 31 March 2018.
(2)     Variable Bonus comprises Performance Bonus (PB) and Value Sharing Bonus (VSB). PB varies according to the actual achievement against Group, business unit and 

individual performance objectives for the year. VSB is awarded for individual performance and Group Economic Profit (EP) performance for the year.  

88

Singapore Telecommunications Limited  |  Annual Report 2018The allocated VSB will be credited into the VSB ‘bank’ and one-third of the ‘bank’ balance is paid out in cash each year provided it is positive. The remaining 
balance is carried forward to the next year and at risk as it is subject to a clawback feature. For more details, please refer to page 86. Variable Bonus Earned is the 
sum of PB and VSB awarded for the financial year ended 31 March 2018. Variable Bonus Paid Out is the sum of PB and VSB paid out in June 2018.

(3)     Provident Fund in Singapore represents payments in respect of company statutory contributions to the Singapore Central Provident Fund.
(4)     Benefits are stated on the basis of direct costs to the company and include car benefits, flexible benefits and other non-cash benefits such as medical cover and 

club membership.

(5)     Total Cash & Benefits Earned is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus awarded for the financial year ended 31 March 2018. 
Total Cash & Benefits Paid Out is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus paid out for the financial year ended 31 March 2018.

(6)     Long-term Incentives are awarded in the form of Restricted Share Award (RSA) and Performance Share Award (PSA) under the Singtel Performance Share Plan 2012. 
(7)     The second tranche of the vested 2016 RSA will be released in June 2019, subject to continued service of the employee.
(8)     The vesting of the RSA and PSA are conditional upon the achievement of predetermined performance targets over the respective performance period, which are a 

two-year period for RSA and a three-year period for PSA.

(9)     The 2018 grants of RSA and PSA were made in June 2018 for performance for the financial year ended 31 March 2018. The per unit fair values of the RSA and PSA 
are S$2.940 and S$1.840 respectively. The performance conditions for the awards have changed with effect from the 2018 grants and are detailed on page 87.

(10)    The per unit value of the SSA is S$3.415. For more details on SSA, please refer to page 87.

Remuneration of Other Key Management 
Summary compensation table for the other top five Key Management for the financial year ended 31 March 2018:

Name

Fixed 
Remuneration
(S$)

( 1 )

Variable
Bonus
(S$)

Provident
Fund
(S$)

(2)

(3)

Benefits
(S$)

(4)

Total Cash & 
Benefits
(S$)

(5)

Restricted  
Share Award
(RSA)
(no. of shares)

(6)

Performance
Share Award
(PSA)
(no. of shares)

(6)

The following are in alphabetical order:

Bill Chang 
CEO Group 

Enterprise

Hui Weng  
Cheong (7) 
COO, AIS

Allen Lew (8) 
CEO Consumer 

Earned

Paid Out

Earned

Paid Out

Earned

Australia

Paid Out

Jeann Low 
Group Chief 

Earned

Corporate Officer

Paid Out

Yuen Kuan Moon 
CEO Consumer 

Earned

Singapore

Paid Out

909,996

663,000

2,132,188

1,966,811

1,061,000

1,084,243

17,340

66,965

9,324

387,246

A$1,504,462

A$3,200,460

A$3,148,377

9,180

A$609,656

909,996

909,996

1,363,332

1,359,710

1,803,332

1,442,561

9,709,264

9,148,230

13,260

63,567

22,440

65,066

71,544

1,220,874

3,126,489

2,961,112

2,120,570

2,143,813

A$5,323,350

A$5,271,267

2,350,155

2,346,533

2,800,834

2,440,063

15,969,151

15,408,117

221,089

353,261

147,960

157,609

242,858

388,044

191,270

305,615

190,972

305,140

994,149

1,509,669

Total

Earned

Paid Out

4,967,469

Performance shares granted, vested and lapsed for the above five executives as at 31 March 2018 are as follows:

Restricted Share Award (RSA)

Granted 
(no. of shares)

Vested
(no. of shares)

Lapsed
(no. of shares)

Released

Date

(no. of shares)

2015 Awards

2016 Awards 

188,260

244,741

425,487

577,815

2017 Awards (10)

882,644

–

–

1-Jun-17

1-Jun-18

1-Jun-18

3-Jun-19

3-Jun-19

1-Jun-20

122,373 

122,368

288,908

288,907  (9)

89

Corporate GovernancePerformance Share Award (PSA)

Granted 
(no. of shares)

Vested
(no. of shares)

Lapsed
(no. of shares)

Released

Date

(no. of shares)

2015 Awards 

2016 Awards (10)

2017 Awards (10)

2,823,526

3,032,763

1,700,195

–

2,823,526

1-Jun-18

–

3-Jun-19

1-Jun-20

Special Share Award (SSA)

Granted (no. of shares)

Sales Moratorium

One-Off Award (11)

395,341

2 years

Notes: 
(1) 
(2)  Variable Bonus comprises Performance Bonus (PB) and Value Sharing Bonus (VSB). PB varies according to the actual achievement against Group, business unit and 

Fixed Remuneration refers to base salary earned for the financial year ended 31 March 2018.

individual performance objectives for the year. VSB is awarded for individual performance and Group Economic Profit (EP) performance for the year. The allocated 
VSB will be credited into the VSB ‘bank’ and one-third of the ‘bank’ balance is paid out in cash each year provided it is positive. The remaining balance is carried 
forward to the next year and at risk as it is subject to a clawback feature. For more details, please refer to page 86. Variable Bonus Earned is the sum of PB and VSB 
awarded for the financial year ended 31 March 2018. Variable Bonus Paid Out is the sum of PB and VSB paid out in June 2018.
(3)  Provident Fund in Singapore represents payments in respect of company contributions to the Singapore Central Provident Fund.
(4)  Benefits are stated on the basis of direct costs to the company and include overseas assignment benefits, tax equalisation, car benefits, flexible benefits and other 

(5) 

(6) 

non-cash benefits such as medical cover and club membership, where applicable.
Total Cash & Benefits Earned is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus awarded for the financial year ended 31 March 2018. 
Total Cash & Benefits Paid Out is the sum of Fixed Remuneration, Provident Fund, Benefits and Variable Bonus paid out for the financial year ended 31 March 2018.   
Long-term Incentives are awarded in the form of performance shares. Grants of the Restricted Share Award (RSA) and Performance Share Award (PSA) under the 
Singtel Performance Share Plan 2012 were made in June 2018 for performance for the financial year ended 31 March 2018. The per unit fair values of the RSA and 
PSA are S$2.940 and S$1.840 respectively. The performance conditions for the awards have changed with effect from the 2018 grants and are detailed on page 87.

(7)  Benefits for Mr Hui Weng Cheong include tax equalisation in relation to his assignment to AIS, Thailand.
(8)  All remuneration items for Mr Allen Lew are denominated in Australian Dollar, except for his Provident Fund, which is denominated in Singapore Dollar. 
(9) 
(10)  The vesting of the RSA and PSA are conditional upon the achievement of predetermined performance targets over the respective performance period, which are a 

The second tranche of the vested 2016 RSA will be released in June 2019, subject to continued service of the employee.

two-year period for RSA and a three-year period for PSA.
The per unit value of the SSA is S$3.415. For more details on SSA, please refer to page 87.

(11) 

Code of Corporate Governance 2012
GUIDELINES FOR DISCLOSURE

General

Q:     (A)     Has the Company complied with all the 

principles and guidelines of the Code?

Board Responsibility
Guideline 1.5

Legend
Q: Questions
A: How has the Company complied?

If not, please state the specific deviations 
and the alternative corporate governance 
practices adopted by the Company in lieu of 
the recommendations in the Code.

Q:     What are the types of material transactions which 

require approval from the Board?

A:     Material items that require Board approval include:

A:     Yes, the Company has complied in all material 

respects with the principles and guidelines of the 
Code of Corporate Governance 2012.

Q:     (B)     In what respect do these alternative 

corporate governance practices achieve the 
objectives of the principles and conform to 
the guidelines in the Code?

A:     Not applicable.

•     The Group’s strategic plans

•     The Group’s annual operating plan and budget

•     Full-year, half-year and quarterly financial results

•     Dividend policy and payout

•     Issue of shares

•     Board succession plans

•     Succession plans for Senior Management, 

including appointment of, and compensation 

90

Singapore Telecommunications Limited  |  Annual Report 2018for, Group CEO, CEOs, Group Chief Corporate 
Officer and Group CFO 

•     Underlying principles of long-term incentive 

representation on the Board, recognising that the 
Board’s needs will change over time taking into 
account the skills and experience of the Board.

schemes for employees

Q:     (B)     Please state whether the current composition 

•     The Group’s risk appetite and risk tolerance 
for different categories of risk, as well as risk 
strategy and the policies for management of 
material risks 

•     Acquisitions and disposals of investments 

exceeding certain material limits 

•     Capital expenditures exceeding certain material 

limits

Members of the board
Guideline 2.6

Q:     (A)     What is the Board’s policy with regard to 
diversity in identifying director nominees?

A:     Singtel is committed to building a diverse, inclusive 

and collaborative culture. Singtel recognises and 
embraces the benefits of diversity on the Board, and 
views diversity at the Board level as an essential 
element in supporting the attainment of its strategic 
objectives and its sustainable development.

A: 

The Board’s Diversity Policy provides that, in 
reviewing Board composition and succession 
planning, the CGNC will consider the benefits of 
all aspects of diversity, including diversity of skills, 
experience, background, gender, age, ethnicity 
and other relevant factors. These differences 
will be considered in determining the optimum 
composition of the Board and when possible should 
be balanced appropriately. All Board appointments 
are made based on merit, in the context of the 
skills, experience, independence and knowledge 
which the Board as a whole requires to be effective. 
Diversity is a key criterion in the instructions to 
external search consultants.

The Board is of the view that gender is an important 
aspect of diversity and will strive to ensure that (a) 
any brief to external search consultants to search 
for candidates for appointment to the Board will 
include a requirement to present female candidates, 
(b) female candidates are included for consideration 
by the CGNC whenever it seeks to identify a new 
Director for appointment to the Board, (c) the Board 
appoints at least one female Director to the CGNC, 
and (d) there is significant and appropriate female 

91

of the Board provides diversity on each of 
the following – skills, experience, gender and 
knowledge of the Company, and elaborate 
with numerical data where appropriate.

A:     Reflecting the focus of the Group’s business in the 
region, three of Singtel’s 10 Directors are from, and 
have extensive experience in, jurisdictions outside 
Singapore, namely, the Chairman, Mr Simon Israel, 
and non-executive Directors, Messrs Venky Ganesan 
and Peter Mason AM. In relation to gender diversity, 
30% of the Singtel Board, or three out of the 10 
Board members, are female.

The individual profiles of the Directors, including 
details of their background and qualifications, are set 
out in the “Board of Directors” section of the Annual 
Report.

Q:     (C)     What steps has the Board taken to achieve 

the balance and diversity necessary to 
maximise its effectiveness?

In order to ensure that Singtel continues to be able 
to meet the challenges and demands of the markets 
in which Singtel operates, the Board is focused 
on enhancing the diversity of skills, expertise and 
perspectives on the Board in a structured way by 
proactively mapping out Singtel’s Board composition 
needs over the short and medium term (Board 
Progression Planning). This is an ongoing process 
facilitated by an independent consultant and is 
informed by a series of detailed interviews between 
the consultant and each member of the Board as 
well as key management members.

Guideline 4.6

Q:  Please describe the board nomination process 
for the Company in the last financial year for (i) 
selecting and appointing new directors and (ii) re-
electing incumbent directors.

A:  The CGNC establishes and reviews the profile 
required of Board members and makes 
recommendations to the Board on the appointment, 
re-nomination and retirement of Directors.

When an existing Director chooses to retire or is 
required to retire from office by rotation, or the 

Corporate Governance 
 
 
 
need for a new Director arises, the CGNC reviews 
the range of expertise, skills and attributes of the 
Board and the composition of the Board. The CGNC 
then identifies Singtel’s needs and prepares a 
shortlist of candidates with the appropriate profile 
for nomination or re-nomination. The Board has 
an ongoing process facilitated by an independent 
consultant to map out these needs and to search for 
candidates to join the Board.

The CGNC takes factors such as attendance, 
preparedness, participation and candour 
into consideration when evaluating the past 
performance and contributions of a Director when 
making its recommendations to the Board. However, 
the re-nomination or replacement of a Director does 
not necessarily reflect the Director’s performance or 
contributions to the Board. The CGNC may have to 
consider the need to position and shape the Board 
in line with the evolving needs of Singtel and the 
business.

When deciding on the appointment of new Directors 
to the Board, the CGNC and the Board consider a 
variety of factors, including the core competencies, 
skills and experience that are required on the Board 
and Board Committees, diversity, independence, 
conflicts of interest and time commitments.

Guideline 1.6

Q:     (A)     Are new directors given formal training? If 

not, please explain why.

A:  Yes, new directors are given formal training. 

Q:     (B)    What are the types of information and training 

provided to (i) new directors and (ii) existing 
directors to keep them up to date?

A:  All new Directors appointed to the Board are briefed 
by the Chairman, as well as the chairmen of the 
Board Committees, on issues relevant to the Board 
and Board Committees. They are also briefed 
by senior management on the Group’s business 
activities, strategic direction and policies, key 
business risks, the regulatory environment in which 
the Group operates and governance practices, 
as well as their statutory and other duties and 
responsibilities as Directors. 

Upon appointment to the Board, each Director 
receives a Directors’ Manual, which sets out the 
Director’s duties and responsibilities and the Board 
governance policies and practices. The Directors’ 

Manual is maintained by the Company Secretary. In 
line with best practices in corporate governance and 
the Singapore Code, new Directors also sign a letter 
of appointment from the Company stating clearly 
the role of the Board and non-executive Directors, 
the time commitment that the Director would be 
expected to allocate and other relevant matters.

To ensure Directors can fulfil their obligations and to 
continually improve the performance of the Board, 
all Directors are encouraged to undergo continual 
professional development during the term of their 
appointment. Professional development may relate 
to a particular subject area, committee membership, 
or key developments in Singtel’s environment, 
market or operations. Directors are encouraged 
to consult the Chairman if they consider that they 
personally, or the Board as a whole, would benefit 
from specific education or training regarding matters 
that fall within the responsibility of the Board or 
relate to the business of Singtel. 

During the financial year ended 31 March 2018, the 
development/training programmes for Directors 
included the following:

•     The Directors participated in an annual offsite 

workshop with Senior Management to formulate 
and plan the Group’s longer-term strategy, 
during which the Directors were briefed on 
developments in the markets in which the 
Group operates and were introduced to new 
technologies and advancements relevant to the 
Group. 

•     Directors were invited to meet with the 

Technology Advisory Panel, during which they 
were also updated by representatives from 
companies in the digital/technology space on 
emerging trends and technologies relevant to 
the Group’s business.

•   The Board visited the Group’s businesses in the 
US, including Amobee, Trustwave and Singtel 
Innov8 and also met with various technology 
companies there.

•  The Board went on a tour of Singtel’s flagship 
data centre, DC West, in Jurong and were 
briefed on the data centre’s operations and 
business.

•  The Board visited the Optus campus in Sydney, 

Australia, and met with business leaders and key 
customers there.

•  Members of the Board attended forums and 
dialogues with experts and senior business 

92

Singapore Telecommunications Limited  |  Annual Report 2018 
 
 
 
 
leaders on issues facing boards and board 
practice.

The Board receives regular reports pertaining to 
the operational and financial performance of the 
Group, as well as regular updates, which include 
information on the Group’s competitors, and industry 
and technological developments. In addition, 
Directors receive analysts’ reports on Singtel and 
other telecommunications and digital companies on 
a quarterly basis. Such reports enable the Directors 
to keep abreast of key issues and developments in 
the industry, as well as challenges and opportunities 
for the Group.

Guideline 4.4

Q:     (A)     What is the maximum number of listed 

company board representations that the 
Company has prescribed for its directors? 
What are the reasons for this number?

A:  The Board has adopted an internal guideline that 

seeks to address the competing time commitments 
that may be faced when a Director holds multiple 
board appointments. The guideline provides that, as 
a general rule, each Director should hold no more 
than five directorships in public listed companies. 
However, the Board recognises that the individual 
circumstances and capacity of each Director are 
different and there may be circumstances in which a 
different limit on board appointments is appropriate.

Q:     (B)     If a maximum number has not been 

determined, what are the reasons?

A:     Not applicable.

A:  Each year, the CGNC undertakes a process to 

assess the effectiveness of the Board, the Board 
Committees and individual Directors. For the 
financial year ended 31 March 2018, as in previous 
years, an independent external consultant was 
appointed to facilitate this process. The 2018 Board 
effectiveness survey was designed to provide an 
evaluation of current effectiveness of the Board and 
to support the Chairman and Board to proactively 
consider the Board’s role in shaping Singtel’s 
future.  The Directors and Senior Management were 
requested to complete an evaluation questionnaire 
focused on five key areas, namely (1) core Board 
effectiveness, including strategic alignment, Board 
focus and priorities, Board and Board Committee 
processes, and Board composition and structure; 
(2) Board culture and dynamics, including the 
Board’s partnership with Management, and Board 
leadership; (3) Board agility and the Board’s role in 
assisting Management to anticipate and shape the 
future and lead transformation ahead of the market, 
including CEO and Board succession planning; (4) 
Board Committee effectiveness; and (5) individual 
Director contribution.

In addition to the appraisal exercise, the 
contributions and performance of each Director 
were assessed by the CGNC as part of its periodic 
reviews of the composition of the Board and the 
various Board Committees. In the process, the 
CGNC was able to identify areas for improving the 
effectiveness of the Board and Board Committees. 
The Board was also able to assess the Board 
Committees through their regular reports to the 
Board on their activities.

Q:     (B)     Has the board met its performance 

objectives?

Q:     (C)     What are the specific considerations in 

deciding on the capacity of directors?

A:  Yes.

A: 

In support of their candidature for directorship or 
re-election, Directors are to provide the CGNC with 
details of other commitments and an indication of 
the time involved. The CGNC and the Board take 
this into account in deciding on the capacity of 
Directors.

Board Evaluation
Guideline 5.1

Q:     (A)     What was the process upon which the Board 

reached the conclusion on its performance 
for the financial year?

93

Independence of Directors
Guideline 2.1

Q:  Does the Company comply with the guideline on 

the proportion of independent directors on the 
Board? 

If not, please state the reasons for the deviation 
and the remedial action taken by the Company.

A:  Yes, seven out of 10 Directors are independent.

Corporate Governance 
 
 
Guideline 2.3

Guideline 9.3

Q:     (A)     Is there any director who is deemed to be 

Q:     (A)     Has the Company disclosed each key 

independent by the Board, notwithstanding 
the existence of a relationship as stated in 
the Code that would otherwise deem him 
not to be independent? If so, please identify 
the director and specify the nature of such 
relationship.

A:  Please refer to the section “Board Composition, 

Diversity and Balance” in the Corporate Governance 
Report for details on Mrs Christina Ong, Mr Bobby 
Chin, Mr Low Check Kian, Mr Gautam Banerjee and 
Mr Venky Ganesan. 

Q:     (B)     What are the Board’s reasons for considering 
him independent? Please provide a detailed 
explanation.

A:  Please refer to the section “Board Composition, 

management personnel’s remuneration, 
in bands of S$250,000 or in more detail, 
as well as a breakdown (in percentage or 
dollar terms) into base/fixed salary, variable 
or performance-related income/bonuses, 
benefits in kind, stock options granted, share-
based incentives and awards, and other long-
term incentives? If not, what are the reasons 
for not disclosing so?

A:  Yes, the details of each of the top five key 

management personnel’s remuneration are fully 
disclosed.

Q:     (B)     Please disclose the aggregate remuneration 

paid to the top five key management 
personnel (who are not directors or the CEO).

Diversity and Balance” in the Corporate Governance 
Report for details on Mrs Christina Ong, Mr Bobby 
Chin, Mr Low Check Kian, Mr Gautam Banerjee and 
Mr Venky Ganesan. 

A:  The aggregate remuneration, comprising total cash 
and benefits, paid to the top five key management 
personnel for FY 2018 amounted to S$15,408,117 as 
indicated on page 89.

Guideline 2.4

Guideline 9.4

Q:  Has any independent director served on the Board 

Q: 

for more than nine years from the date of his first 
appointment? If so, please identify the director and 
set out the Board’s reasons for considering him 
independent.

Is there any employee who is an immediate family 
member of a director or the CEO, and whose 
remuneration exceeds S$50,000 during the year? 
If so, please identify the employee and specify the 
relationship with the relevant director or the CEO.

A:  No.

Disclosure on Remuneration
Guideline 9.2

Q:  Has the Company disclosed each director’s and 

the CEO’s remuneration as well as a breakdown (in 
percentage or dollar terms) into base/fixed salary, 
variable or performance-related income/bonuses, 
benefits in kind, stock options granted, share-
based incentives and awards, and other long-term 
incentives? If not, what are the reasons for not 
disclosing so?

A:  Yes, the details of each Director’s and the Group 

CEO’s remuneration are fully disclosed. 

A:  No.

Guideline 9.6

Q:     (A)     Please describe how the remuneration 
received by executive directors and key 
management personnel has been determined 
by the performance criteria.

A:  The ERCC reviews remuneration through a process 

that considers Group, business unit and individual 
performance as well as relevant comparative 
remuneration in the market. 

Total remuneration for the Group CEO and 
key management personnel comprise fixed 
components and performance-related components. 
The performance-related components include 
Performance Bonus, Value Sharing Bonus and 

94

Singapore Telecommunications Limited  |  Annual Report 2018 
Long-term Incentives. Performance Bonus (PB) is 
designed to support the Group’s business strategy 
and the ongoing enhancement of shareholder value 
through the delivery of annual Financial, Strategy, 
Operational and People objectives. Value Sharing 
Bonus (VSB) is used to defer bonuses over a time 
horizon to ensure alignment with sustainable value 
creation for shareholders over the longer term. 
Long-term Incentives refer to Restricted Share 
Award (RSA) and the Performance Share Award 
(PSA), with the PSA’s performance conditions tied 
to key drivers of shareholder value creation and 
aligned to the Group’s business objectives.

Q:     (B)     What were the performance conditions used 

to determine their entitlement under the 
short-term and long-term incentive schemes?

A:  The PB will vary according to the actual achievement 

against Group, business unit and individual 
performance objectives, which can be grouped 
into four broad categories: Financial, Strategy, 
Operational and People. People targets comprise 
leadership competencies, core values, people 
development and staff engagement. VSB will be 
allocated based on the Economic Profit Performance 
of the Group. PSA is a performance-based award 
and its vesting is contingent on performance 
conditions aligned with shareholders’ interests 
such as Reported Group NPAT and Absolute Total 
Shareholder Return. RSA is a time-based award 
and its vesting is dependent on maintaining a 
satisfactory individual performance rating.

Q:     (C)     Were all of those performance conditions 

met? If not, what were the reasons?

A:  The performance conditions were generally met, 

except for total shareholder return conditions, which 
were impacted by adverse share price movements. 

Risk Management and Internal Controls
Guideline 6.1

Q:  What types of information does the Company 

provide to independent directors to enable them 
to understand its business, the business and 
financial environment as well as the risks faced by 
the Company? How frequently is the information 
provided?

A:  Prior to each Board meeting, Singtel’s Management 
provides the Board with information relevant to 
matters on the agenda for the meeting. In general, 
such information is provided a week in advance 
of the Board meeting. The Board also receives 
regular reports pertaining to the operational 
and financial performance of the Group, as well 
as regular updates, which include information 
on the Group’s competitors, and industry and 
technological developments. In addition, Directors 
receive analysts’ reports on Singtel and other 
telecommunications and digital companies on a 
quarterly basis. Such reports enable the Directors to 
keep abreast of key issues and developments in the 
industry, as well as challenges and opportunities for 
the Group. 

The Board has separate and independent access to 
the Senior Management and the Company Secretary 
at all times. Procedures are in place for Directors 
and Board Committees, where necessary, to seek 
independent professional advice, paid for by Singtel.

Guideline 13.1

Q:  Does the Company have an internal audit function? 

If not, please explain why.

A:  Yes, the Company has an internal audit function.

Guideline 11.3

Q:     (A)     In relation to the major risks faced by the 
Company, including financial, operational, 
compliance and information technology 
controls, and risk management systems. 
please state the bases for the Board’s view 
on the adequacy and effectiveness of the 
Company’s risk management and internal 
control systems.

A:  Based on the internal controls established and 

maintained by the Group, work performed by 
internal and external auditors, and reviews 
performed by Management and various Board 
Committees, the Board, with the concurrence 
of the AC, is of the opinion that the Group’s risk 
management and internal control framework and 
systems were adequate and effective as at  
31 March 2018 to address financial, operational and 
compliance risks, including information technology 
risk, which the Group considers relevant and 
material to its operations.

95

Corporate Governance 
 
Please refer to the section “Risk Management and 
Internal Controls” in the Corporate Governance 
Report for further details.

meetings are largely undertaken by Singtel’s Senior 
Management, the Chairman and certain Board 
members also meet with investors every year.

Singtel strongly encourages and supports 
shareholder participation at general meetings. At 
each AGM, the Group CEO delivers a presentation 
to update shareholders on Singtel’s progress over 
the past year. Directors and Senior Management 
are in attendance to address queries and concerns 
about Singtel. Singtel’s external auditor also attends 
to help address shareholders’ queries relating to 
the conduct of the audit and the preparation and 
content of the auditor’s reports.

Q:     (B)     Is this done by a dedicated investor relations 
team (or equivalent)? If not, who performs this 
role?

A:  Singtel’s Investor Relations department has primary 

responsibility for engagement with the investment 
community.

Q:     (C)     How does the Company keep shareholders 
informed of corporate developments, apart 
from SGXNET announcements and the 
annual report?

A:  The Singtel Investor Relations website is a 

key resource of information for the investment 
community. It contains a wealth of investor-
related information on Singtel, including investor 
presentations, webcasts of earnings presentations, 
transcripts of earnings conference calls, annual 
reports, upcoming events, shares and dividend 
information and investor factsheets. It can be 
accessed via www.singtel.com/about-us/investor-
relations.

Guideline 15.5

Q: 

If the Company is not paying any dividends for the 
financial year, please explain why.

A:  Not applicable.

Q:     (B)     In respect of the past 12 months, has the 

Board received assurance from the CEO and 
the CFO as well as the internal auditor that:  
(i) the financial records have been properly 
maintained and the financial statements 
give a true and fair view of the Company’s 
operations and finances; and (ii) the 
Company’s risk management and internal 
control systems are effective? If not, how 
does the Board assure itself of points (i) and 
(ii) above?

A:  Yes.

Guideline 12.6

Q:     (A)     Please provide a breakdown of the fees paid 

in total to the external auditors for audit and 
non-audit services for the financial year.

A:  Please refer to the section “External Auditor” in the 

Corporate Governance Report for the breakdown 
of fees. The Notes to the Financial Statements also 
include information on the fees paid to external 
auditors.

Q:     (B)     If the external auditors have supplied a 

substantial volume of non-audit services to 
the Company, please state the bases for the 
Audit Committee’s view on the independence 
of the external auditors.

A:  Not applicable.

Communication with Shareholders
Guideline 15.4

Q:     (A)     Does the Company regularly communicate 

with shareholders and attend to their 
questions? How often does the Company 
meet with institutional and retail investors?

A:  Yes, Singtel proactively engages shareholders 

and the investment community through group and 
one-on-one meetings, conference calls and email 
communications. This year, Singtel engaged over 
500 investors in more than 200 meetings and 
conference calls in Singapore, London, Japan, New 
York and other global financial centres. While these 

96

Singapore Telecommunications Limited  |  Annual Report 2018 
 
STRIVE FOR CLEAR, OPEN AND 
ACCURATE DISCLOSURES  
to help investors make informed  
and timely decisions about their  
Singtel securities

PROACTIVE AND OPEN 
COMMUNICATION WITH THE 
INVESTMENT COMMUNITY 
We are cultivating a greater 
understanding of our digital 
transformation, as the Group 
leverages global opportunities to 
grow standalone digital businesses, 
and harnesses digitalisation to 
improve customer experience 
and raise productivity in our core 
operations. To help investors 
track the progress of the Group’s 
diverse operations, we provide 
extensive qualitative and quantitative 
disclosures. 

During the financial year ended 
31 March 2018, the management 
and Investor Relations (IR) team 
engaged more than 500 investors 
in 229 meetings and conference 
calls to discuss the Group’s business 
strategy, operational and financial 
performance and prospects. We also 
participated in local and overseas 
investor conferences and roadshows, 
covering Hong Kong, Japan, 
Malaysia, the US and Europe. 

To give investors a better 
understanding of our business and 
operations, we hold an Investor Day 
annually. Last year’s event attracted 
close to 70 participants, who got 
to interact directly with the senior 
management of Singtel, Optus and 
our associates through small group 
presentations, as well as a question 
and answer session. 

97

PROMOTE TWO-WAY  
INVESTOR COMMUNICATION  
through different touch points  
and forums

MAINTAIN LEADERSHIP 
AND SET THE BAR 
for corporate governance and 
sustainability standards

We continued to offer site visits 
to our business facilities. Our 
FutureNow Innovation Centre drew 
investors who were keen to learn 
about cutting-edge developments 
in areas such as cyber security, 
smart cities, data analytics and 5G 
applications. We also welcomed 
investors to our revamped flagship 
Singtel Shop at Comcentre, which 
is part of our omni-channel strategy 
to give customers a seamless 
experience whenever and wherever 
they interact with us.

Retail investors are an important 
part of our outreach efforts. We 
renewed our long-term sponsorship 
of the Securities Investors 
Association (Singapore) (SIAS) 
Investor Education Programme 
and leveraged the Singtel-SIAS 
dialogue to communicate our 
strategy and performance with retail 
shareholders. We also partnered 
with the Central Depository (CDP) to 
reach out to retail shareholders who 
were previously uncontactable and 
encouraged them to update their 
account particulars with the CDP. 
Retail investors are also welcome 
to contact us directly through email 
or telephone on any issues and 
concerns.

MAINTAIN LEAD IN CORPORATE 
GOVERNANCE, TRANSPARENCY 
AND INVESTOR RELATIONS  
We continue to nurture and maintain 
strong links with sell-side research 
analysts and are well covered by 

more than 20 analysts based in Hong 
Kong, Malaysia, India, Singapore and 
the UK who issue regular reports. We 
monitor analyst, industry and media 
reports closely as part of our efforts 
to continuously improve disclosures 
and IR practices.

Each year, we commission an 
independent study to gather investor 
perceptions of our business. The 
study, comprising in-depth interviews 
with approximately 70 institutional 
investors and research analysts, 
gives our Board and management 
a better understanding of investors’ 
views and concerns. It also helps 
the IR team identify areas of investor 
focus, enabling us to tailor our 
communications and disclosures 
accordingly. In the latest study, 
Singtel continues to be recognised 
for its strong management, corporate 
governance, dividend policy and 
exposure to leading telcos in the 
emerging markets. While investors 
recognise the near-term challenges 
facing the telecoms sector, they 
believe we are competing from a 
position of strength.

Good corporate governance 
also plays a vital role in shaping 
investor perception of the integrity, 
transparency, accountability and 
efficiency of a company. We keep 
abreast of the latest developments 
and benchmark ourselves against 
best practices in key areas such 
as disclosure, board structure, 
shareholder rights and remuneration.

Investor RelationsBesides corporate governance, 
sustainability is becoming 
increasingly important for investors. 
We are providing more disclosures 
on our sustainability initiatives and 
helping investors understand our 
material issues, policies and efforts 
in areas such as the environment 
and climate change, supply chain, 
social matters and human rights. 
We have also endorsed the Task 
Force on Climate-Related Financial 
Disclosures voluntary framework 
and are working towards meeting its 
standards.

The Singtel IR website is the 
primary source for corporate 
information, financial data and 

significant business developments 
for the investment community. All 
new, material announcements are 
made available on the IR website 
immediately after they are released 
to the Singapore Exchange to ensure 
fair, equal and prompt dissemination 
of information. In addition, we 
constantly review the level of 
disclosure, to align it with global best 
practices and take into account new 
business initiatives.

During our quarterly financial 
results announcements, we issue 
a comprehensive set of materials, 
including detailed financial 
statements, management discussion 
and analysis and presentation 

slides. Our management responds 
to questions from investors and 
analysts over a conference call on 
the day of the results announcement 
and a transcript of the conference 
call is made available on the Singtel 
IR website the next work day.

SHAREHOLDER INFORMATION 
As at 31 March 2018, Temasek 
Holdings (Private) Limited remained 
our largest shareholder, with 52% of 
issued share capital. Other Singapore 
shareholders held approximately 
12%. In terms of geographical 
distribution, the US/Canada and 
Europe accounted for approximately 
12% and 10% of issued share capital 
respectively.

SHARE OWNERSHIP
BY GEOGRAPHY

IR CALENDAR OF EVENTS

16.3B shares

( 1 )

Temasek Holdings (2)
US/Canada
Singapore (ex-Temasek)
Europe
Asia (ex-Singapore)
Others

52%
12%
12%
10%
4%
10%

Notes:
( 1 )     As at 31 March 2018.
(2)     Includes direct and deemed interest.

   April 2017

   September 2017

• 

Investor Meeting with 
Chairman and Board 
Members, Singapore

•  Non-deal Equity 
Roadshow, Japan

   May 2017

•  Non-deal Equity 

Roadshows, Singapore, 
Europe and the US

   June 2017

• 

Singtel Investor Day, 
Singapore

   July 2017

• 

25th Annual General 
Meeting, Singapore

   August 2017

•  Non-deal Equity 

Roadshow, Singapore 

•  CLSA Investors’ Forum,  

Hong Kong

   November 2017

•  Non-deal Equity 

Roadshows, Singapore, 
Malaysia and the UK

•  Bank of America Merrill 

Lynch Telco Day, 
Singapore

   February 2018

•  Non-deal Equity 

Roadshow, Singapore

   March 2018

•  Credit Suisse Asian 

Investment Conference, 
Hong Kong

•  Maybank Kim Eng Invest 
ASEAN 2018 site tour: 
FutureNow Innovation 
Centre, Singapore

98

Singapore Telecommunications Limited  |  Annual Report 2018We identify and manage risks to reduce the uncertainty associated with executing our 
business strategies and maximise opportunities that may arise. Risks can take various 
forms and can have material adverse impact on our reputation, operations, human 
resources and financial performance. 

We have established a comprehensive risk management framework approved by our 
Risk Committee. The risk management framework sets out the governance structure 
for managing risks, our risk philosophy, risk appetite and tolerance levels, our risk 
management approach as well as risk factors. 

In addition, our risk assessment and mitigation strategy are aligned with our Group 
strategy and is an integral part of the annual business planning and budgeting process.

GOVERNANCE STRUCTURE FOR MANAGING RISKS

Instils culture and approach for risk governance

THE BOARD
• 
•  Provides oversight of risk management systems and internal controls
•  Reviews key risks and mitigation plans
•  Determines risk appetite and tolerance
•  Monitors exposure

RISK COMMITTEE
•  Reviews and recommends risk strategy and 

policies

•  Oversees design, implementation and 
  monitoring of internal controls
•  Reviews adequacy and effectiveness of the 
  Group’s risk framework
•  Monitors the implementation of risk mitigation 

plans

AUDIT COMMITTEE
•  Reviews adequacy and effectiveness of the 
  Group’s internal control framework
•  Oversees financial reporting risk for the 
  Group
•  Oversees internal and external audit 

processes

•  Monitors exposure

MANAGEMENT COMMITTEE
• 

Implements risk management practices within all business units and functions

RISK MANAGEMENT COMMITTEE
•  Supports the Board and Risk Committee in terms of risk governance and oversight
•  Sets the direction and strategies to align risk management and monitoring with the Group’s risk appetite 

and tolerance 

•  Reviews the risk assessments carried out by the Business Units
•  Reviews and assesses risk management systems and tools
•  Reviews efficiency and effectiveness of mitigations and coverage of risk exposures

CYBER SECURITY RESILIENCY COMMITTEE
•  Supports the Risk Management Committee on matters related to Cyber Security Risks
•  Provides direction and strategy to strengthen defence against cyber security threats
•  Reviews security controls of Information Technology (IT) systems and network infrastructure

99

Risk Management Philosophy and Approach 
 
 
 
OUR RISK PHILOSOPHY

Our risk philosophy and risk management approach are based on three key principles:

RISK CENTRIC CULTURE
•  Set the appropriate tone at 

the top

•  Promote awareness, 

ownership and proactive  
  management of key risks
•  Promote accountability

STRONG CORPORATE 
GOVERNANCE STRUCTURE
•  Promote good corporate  

governance

•  Provide proper segregation of  

duties

•  Clearly define risk-taking  
responsibility and authority

•  Promote ownership and  

accountability for risk-taking

PROACTIVE RISK 
MANAGEMENT PROCESS
•  Robust processes and  

systems to identify, quantify,  
  monitor, mitigate and manage  

risks

•  Benchmark against global  

best practices

RISK APPETITE 

The Board has approved the following risk appetite statement:

•  The Group is committed to delivering value to our shareholders achieved through sustained profitable growth.  
  However, we shall not compromise our integrity, values and reputation by risking brand damage, service  

delivery standards, severe network disruption or regulatory non-compliance.

•  The Group will defend our market leadership position in Singapore and strengthen our market position in  
  Australia and in Asia Pacific through our regional associates. We will continue to pursue business expansion in  
the emerging markets, including acquiring controlling stakes in the associates, and actively managing the risks.

•  The Group is prepared to take measured risks to seek new growth in the digital space by providing global  
platforms and enablers, targeted at a global footprint, while leveraging our current scale and core strengths.

•  The Group targets an investment grade credit rating and dividend payout policy consistent with our stated  

dividend policy and guidance.

RISK MANAGEMENT

We have established a rigorous 
and systematic risk review process 
to identify, monitor, manage 
and report risks throughout the 
organisation based on our risk 
philosophy. Management has 
primary responsibility for identifying, 
managing and reporting to the 
Board the key risks faced by 
the Group. Management is also 
responsible for ensuring that the 
risk management framework is 
effectively implemented within 
the business units. The business 
units are supported by specialised 
functions such as Regulatory, Legal, 
Tax, Environment and Sustainability, 

Insurance, Treasury and Credit 
Management in the management of 
risks. In addition, through stakeholder 
engagement and materiality 
assessments, we regularly review 
and assess the environmental, social 
and governance (ESG) risks that exist 
or emerge in our broader value chain, 
and we address them with various 
corporate sustainability initiatives. Our 
corporate sustainability initiatives are 
discussed further on page 108 and in 
our Group Sustainability Report. 

Our key risk management activities 
also include scenario planning, 
business continuity/disaster recovery 

management and crisis planning 
and management. Close monitoring 
and control processes, including 
the use of appropriate key risk and 
key performance indicators, are 
implemented to ensure the risk 
profiles are managed within policy 
limits. 

In addition, we have in place a formal 
programme of risk and control self-
assessment where line personnel 
are involved in the ongoing 
assessment and improvement of 
risk management and controls. 
The effectiveness of our risk 
management policies and processes 

100

Singapore Telecommunications Limited  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
is reviewed on a regular basis 
and, where necessary, improved. 
Independent reviews are conducted 
by third party consultants regularly 
to ensure the appropriateness of the 
risk management framework. The 
consultants also report key risks to 
the Board, as well as provide periodic 
support and input when undertaking 
specific risk assessments. Overall the 
risk management processes facilitate 
alignment of our strategy and annual 
operating plan with the management 
of key risks. 

Singtel’s Internal Audit (IA) carries 
out reviews and internal control 
advisory activities aligned to the 
key risks in our businesses. This 
provides independent assurance 
to the Audit Committee (AC) on 

the adequacy and effectiveness 
of our risk management, financial 
reporting processes, and internal 
control and compliance systems. In 
order to provide assurance to the 
Board, the CEOs of our business 
units submit an annual report on the 
key risks and mitigation strategies 
for their respective businesses to 
the Risk Committee. Our Group CEO 
and Group CFO provide a written 
certification to the Board confirming 
the integrity of financial reporting, and 
the efficiency and effectiveness of 
the risk management, internal control 
and compliance systems every year. 

In the course of their statutory audit, 
external auditors review our material 
internal controls to the extent of the 
scope laid out in their audit plans. Any 

material non-compliance and internal 
control weaknesses, together with 
their recommendations to address 
them, are reported to the AC. Our 
Management, with the assistance of 
Singtel IA, follows up on the external 
auditors’ recommendations as part of 
their role in reviewing our system of 
internal controls. 

The systems that are in place are 
intended to provide reasonable 
but not absolute assurance against 
material misstatements or loss, as 
well as ensuring the safeguarding of 
assets, the maintenance of proper 
accounting records, the reliability of 
financial information, compliance with 
applicable legislation, regulations and 
best practices, and the identification 
and management of business risks.

RISK FACTORS

Our financial performance and operations are influenced by a vast range of risk factors. Many of these affect not just 
our businesses, but also other businesses in and outside the telecommunications industry.  These risks vary widely and 
many are beyond the Group’s control. There may also be risks that are either presently unknown or not currently as-
sessed as significant, which may later prove to be material. However, we aim to mitigate the exposures through appro-
priate risk management strategies and internal controls.

The section below sets out the principal risk types, which are not listed in the order of significance.

•  Economic Risks
•  Political Risks
•  Regulatory and Litigation Risks
•  Competitive Risks
•  Expansion Risks
•  Project Risks

•  New Business Risks
•  Technology Risks
•  Vendor/Supply Chain Risks
• 
•  Cyber Security Risks
•  Data Protection and Privacy  
  Risks

Information Technology Risks 

•  Financial Risks
•  Network Failure and  
  Catastrophic Risks
•  Talent Management Risks
•  Electromagnetic Energy Risks
•  Climate Change Risks

ECONOMIC RISKS
Changes in domestic, regional and 
global economic conditions may 
have a material adverse effect on 
the demand for telecommunications, 
information technology (IT) and 
related services, digital services, and 
hence, on our financial performance 
and operations. As the global 
headwinds intensify resulting in 

uncertainty in the macro-economic 
environment, this could have an 
adverse effect on our overall Group 
strategy and growth.

The global credit and equity markets 
have experienced substantial 
dislocations, liquidity disruptions and 
market corrections. These and other 
related events have had a significant 

impact on economic growth as 
a whole and consequently, on 
consumer and business demand for 
telecommunications, IT and related 
services, and digital services.

Our planning and management 
review processes involve the 
periodic monitoring of budgets 
and expenditures to minimise the 

101

Risk Management Philosophy and Approachrisk of over-investment. Each of 
the business units in our Group 
has continuing cost management 
programmes to drive improvements 
in their cost structures. 

POLITICAL RISKS 
Our Group Consumer business 
is geographically diversified with 
operations in Singapore, Australia 
and the emerging markets. Some of 
the countries in which our business 
operates have experienced or 
continue to experience political 
instability. The continuation or re-
emergence of such political instability 
in the future could have a material 
adverse effect on economic or social 
conditions in those countries, as 
well as on the ownership, control 
and condition of our assets in those 
areas.

We work closely with the 
Management and our partners in 
the countries where we operate 
to leverage the local expertise, 
knowledge and ability to manage 
the local and socio-economic 
conditions and risks. This way, we 
ensure compliance with the laws 
and are better able to implement risk 
mitigation measures. 

As Group Enterprise and Group 
Digital Life expand their business 
operations across the region and 
around the world, exposure to similar 
political and socio-economic risks 
may increase in the future.

REGULATORY AND  
LITIGATION RISKS
Regulatory Risks
Our businesses depend on 
licences issued by government 
authorities. Failure to meet regulatory 
requirements could result in fines or 
other sanctions including, ultimately, 
the revocation of licences.
Our global operations are 
subject to extensive government 

regulations, which may impact or 
limit our flexibility to respond to 
market conditions, competition, 
new technologies or changes in 
cost structures. Governments may 
alter their policies relating to the 
telecommunications, IT, multimedia 
and related industries, as well as the 
regulatory environment (including 
taxation) in which we operate. Such 
changes could have a material 
adverse effect on our financial 
performance and operations. 

Our overseas investments are also 
subject to the risk of imposition of 
laws and regulations restricting the 
level, percentage and manner of 
foreign ownership and investment, 
as well as the risk of nationalisation. 
Any of these factors can materially 
and adversely affect our overseas 
investments.

Consumer Australia, Consumer 
Singapore and Group Enterprise 
are impacted by the implementation 
of national broadband networks in 
both Australia and Singapore. In 
Singapore, the Infocomm Media 
Development Authority of Singapore 
(IMDA) has, in its implementation 
of the Next Generation Nationwide 
Broadband Network (Next Gen NBN), 
designed a structure to level the 
playing field to make the benefits 
of the Next Gen NBN available 
to all industry players. Under the 
structural separation rules laid down 
by IMDA and in compliance with 
an undertaking, Singtel divested its 
stake in NetLink Trust (NLT), which 
designs, builds, owns and operates 
the passive infrastructure for Next 
Gen NBN, to less than 25% in July 
2017. The Next Gen NBN structure 
has significantly altered the existing 
cost model of the industry and 
increased the level of competition 
from new entrants.

In Australia, the government 
is currently undertaking a 
significant reform of the fixed-line 
telecommunications sector, including 
the rollout of a national broadband 
network by the government owned 
entity, NBN Co, to be operated on a 
wholesale-only open access basis. 
It is possible that the Australian 
government’s policy decisions 
relating to the national broadband 
network or commercial decisions 
taken by NBN Co could ultimately 
lead to a sub-optimal or negative 
outcome for Optus.

Our operations are also subject to 
various other laws and regulations 
such as those relating to customer 
data privacy and protection, anti-
bribery and corruption, workplace 
safety and health, cyber security 
and national security. Failure to 
meet these regulations may affect 
our business and/or our capacity 
to operate in line with our business 
objectives. 

We have access to appropriate 
regulatory expertise and staffing 
resources in Singapore and Australia 
and we work closely with the various 
stakeholders and our partners in the 
countries we operate in. We closely 
monitor new developments and 
regularly participate in discussions 
and consultations with the respective 
regulatory authorities and the 
industry to propose changes and 
provide feedback on regulatory 
reforms and developments in the 
telecommunications and media  
industry.

Access to Spectrum
Access to spectrum is critically 
important for supporting our business 
of providing mobile voice, data and 
other connectivity services. The 
use of spectrum in most countries 
where we operate is regulated 
by government authorities and 

102

Singapore Telecommunications Limited  |  Annual Report 2018requires licences. Failure to acquire 
access to spectrum or new or 
additional spectrum on reasonable 
commercial terms or at all could have 
a material adverse effect on our core 
communications business, financial 
performance and growth plans. 

to approve deviations from the 
standard terms.

COMPETITIVE RISKS 
We face competitive risks in all 
markets and business segments in 
which we operate.

Taxation Risks
Our Group has operations across a 
large number of jurisdictions and we 
are subject to the tax regulations, 
or changes in regulations, in the 
respective jurisdictions in which 
we operate. The tax legislations 
or changes may increase our 
compliance obligations and business 
costs. 

We are committed to comply with 
applicable tax laws in countries 
where we operate. We have skilled 
staff in taxation matters and work 
with external tax advisors where 
necessary. Material tax disputes and 
risks are escalated in accordance 
with the risk management framework, 
and appropriate disclosures are 
made in our financial statements. 

Litigation Risks
We are exposed to the risk of 
regulatory or litigation action by 
regulators and other parties. Such 
regulatory matters or litigation 
actions may have a material effect 
on our financial condition and results 
of operations. Examples of such 
litigation are disclosed in Notes 
to the Financial Statements under 
“Contingent Liabilities”.

We have put in place master supply 
agreements with vendors, master 
services agreements with customers, 
and implemented contract policies 
to manage contractual arrangements 
with our vendors and customers. The 
policies also set out the necessary 
risk empowerment framework and 
principles for the Management 
Committee, CEOs, and management 

103

Group Consumer Business 
The telecommunications market in 
Singapore is highly competitive. As 
competition further intensifies with 
the entry of a fourth mobile network 
operator and mobile virtual network 
operators (MVNOs), our market share 
may decline and be exposed to 
more intense price competition. The 
competitive pressure in the fixed-
broadband segments continues to 
be high among the Retail Service 
Providers (RSPs), with the ongoing 
migration of customers from 
asymmetric digital subscriber line 
(ADSL) to fibre plans. Singapore’s 
Next Gen NBN regulations allow 
the RSPs equal and open access to 
NetLink Trust’s fibre network. The 
replacement of our ADSL services 
with fibre services may also subject 
us to the risk of loss of customers to 
the competition.

In the Australian mobile market, in 
addition to the incumbent operator, 
a number of participants are 
subsidiaries of international groups 
and operators, and have made large 
investments which are now sunk 
costs. We are, therefore, exposed 
to the risk of irrational pricing being 
introduced by such competitors. 
The consumer fixed-line services 
market continues to be dominated 
by the incumbent provider, which 
can leverage its scale and market 
position to restrict the development 
of competition. With the deployment 
of the Australian national broadband 
network, competition is expected to 
increase as new operators enter the 
market.

The operations of our regional 
associates’ businesses are also 
subject to highly competitive 
market conditions. Their growth 
depends in part on the adoption 

of mobile data services in their 
markets. Some of these markets have 
and could continue to experience 
intensifying price competition for 
mobile data services including from 
new competitors and/or smaller 
scale competitors, leading to lower 
profitability and potential loss of 
market share for our associates. 

Our business models and profits are 
also challenged by disintermediation 
in the telecommunications industry by 
handset providers and non-traditional 
telecommunications service providers 
(including social media networks 
and over-the-top (OTT) players) 
which provide multimedia content, 
applications and services directly on 
demand.

We continue to invest in our networks 
to ensure that our networks have the 
coverage, capacity and speed that will 
provide our customers with the best 
mobile experience. Group Consumer 
is focused on driving efficiencies and 
innovation, via new technologies, 
products and services, processes and 
business models to meet evolving 
customer needs and enhance 
customer experience.

Group Enterprise Business
Business customers enjoy wide 
choices for many of our services, 
including fixed, mobile, cloud, 
managed services and hosting, IT 
services and consulting. Competitors 
include multinational IT and 
telecommunications companies, 
technology companies that introduce 
new communication services as well 
as other non-traditional players, while 
in Australia, the enterprise market is 
dominated by the incumbent. The 
quality and prices of these services 
can influence a potential business 
customer’s decision. Prices for some 
of these services have declined 
significantly in recent years as a result 
of capacity additions, technology 
innovations and price competition. 
Such price declines are expected to 
continue.

Risk Management Philosophy and ApproachGroup Enterprise continues to 
focus on offering companies 
comprehensive and integrated 
infocomm technology (ICT) solutions 
and initiatives to strengthen 
customer engagement. This includes 
broadening our solution portfolio to 
cover new areas of customer need, 
such as cloud computing, cyber 
security and Internet of Things (IoT) 
solutions for smart cities.

Group Digital Life Business
The digital products and services 
we offer are primarily in the areas of 
digital marketing, OTT video and data 
analytics. Competition is intense, with 
many OTT operators offering these 
services and facing low barriers to 
entry. 

Group Digital Life aspires to become 
a significant global player in these 
areas by delivering distinctive 
products and services in the target 
markets and launching them 
quickly to capture market share. 
We will continue to scale our digital 
businesses, leveraging on our 
valuable assets, such as extensive 
customer knowledge, touch points, 
intelligent networks and the scale of 
our customer base.  

EXPANSION RISKS
Given the size of the Singapore 
and Australia markets, our future 
growth depends, to a large extent, 
on our ability to grow our overseas 
operations in both traditional and 
new digital services. This comes with 
considerable risks. 

Partnership Relations 
The success of our strategic 
investments depends, to a large 
extent, on our relationships with, and 
the strength of our partners. There is 
no guarantee that we will be able to 
maintain these relationships or that 
our partners will remain committed to 
their partnerships.

Acquisition Risks 
We continually look for investment 
opportunities that can contribute to 

our expansion strategy and develop 
new revenue streams. Our efforts are 
challenged by the limited availability 
of opportunities, competition from 
other potential investors, foreign 
ownership restrictions, government 
and regulatory policies, political 
considerations and the specific 
preferences of sellers. We face 
challenges arising from integrating 
newly acquired businesses with our 
own operations, managing these 
businesses and talent in markets 
where we have limited experience 
and/or resources and financing 
these acquisitions. We also risk not 
being able to generate synergies 
from these acquisitions, and the 
acquisitions becoming a drain on our 
management and capital resources.

The business strategies of some 
of our regional associates involve 
expanding operations outside their 
home countries, as well as in-country 
mergers and acquisitions. These 
associates may enter into joint 
ventures and other arrangements 
with other parties. Such joint 
ventures and other arrangements 
involve risks, including, but not 
limited to, the possibility that the joint 
venture or investment partner may 
have economic or business interests 
or goals that are not consistent 
with those of the associates. There 
is no guarantee that the regional 
associates can generate synergies 
and successfully build a competitive 
regional footprint.  

We adopt a disciplined approach 
in our investment evaluation and 
decision-making process. Members 
of our management team are also 
directors on the boards of our 
associates and joint ventures. In 
addition to sharing network product 
innovation and development and 
commercial experience, best 
practices in the areas of corporate 
governance and financial reporting 
are also shared across the Group. 

PROJECT RISKS
We incur substantial capital 
expenditure in constructing and 
maintaining our networks and IT 
systems infrastructure. These projects 
are subject to risks associated with the 
construction, supply, installation and 
operation of equipment and systems.

The projects that we undertake as 
contractors to operate and maintain 
infrastructure are subject to the risks 
of increased project costs, disputes 
and unexpected implementation 
delays, any of which can result in an 
inability to meet projected completion 
dates or service levels.

Group Enterprise is a major IT service 
provider to governments and large 
enterprises in the region. We face 
potential project execution risks 
such as under-estimation of efforts 
or technical complexities which can 
result in cost overruns, project delays 
and losses.

We have a project risk management 
framework in place for systematic 
assessment, monitoring and reporting 
of key project risks. Risk profiling of 
the projects are performed for project 
monitoring and governance, so that 
appropriate attention and focus are 
given to high risk projects including 
those involving new and/or complex 
technology.

NEW BUSINESS RISKS
Beyond our traditional carriage 
business in Singapore and Australia, 
we are venturing into new growth 
areas to create additional revenue 
streams, including mobile applications 
and services, pay TV, regional 
premium OTT video, content, 
managed services, cloud services, 
cyber security, ICT, data analytics 
and digital marketing. There is no 
assurance that we will be successful 
in these ventures, which may require 
substantial capital, new expertise, 
considerable process or systems 
changes, as well as organisational, 
cultural and mindset changes. These 
businesses may also expose us to 

104

Singapore Telecommunications Limited  |  Annual Report 2018new areas of risks associated with 
the media and online industries such 
as media regulation, brand safety, 
intellectual property infringement, 
content rights disputes, online 
falsehood, and data protection 
regulations and legislation.

In the emerging markets in which 
our associates operate, regulatory 
practices, including spectrum 
availability, may also not necessarily 
synchronise with the technology 
progression path and the market 
demand for new technologies. 

As new businesses place new 
demands on people, processes and 
systems, we respond by continually 
updating our organisation structure, 
talent management and development 
programme, reviewing our policies 
and processes, and by investing in 
new technologies to meet changing 
needs.

TECHNOLOGY RISKS
Rapid and significant technological 
changes are typical in the 
telecommunications and ICT industry.
Technological changes may reduce 
costs, expand the capacity of new 
infrastructure, bring new sources 
of revenue, and/or result in shorter 
periods for investment recovery, all 
of which present both opportunities 
as well as disruption and challenges. 
These changes may materially affect 
the Group’s capital expenditure 
and operating costs, as well as the 
demand for products and services 
offered by our business divisions.

The rapid advancements in new 
technologies such as Artificial 
Intelligence (AI), Digital Application 
Programming Interfaces (APIs), 
cloud, and blockchain are driving 
development of entirely new 
ecosystems and business models. 
This may leave us with infrastructure 
and systems that are technically 
obsolete before the end of their 
expected useful life and may require 
us to replace and upgrade our 
network and systems infrastructure to 
remain competitive, and as a result, 
incur additional capital expenditure. 
On the other hand, these changes 
also present opportunities for us 
to build upon our connectivity 
advantage, depending on our ability 
to apply these technologies to 
relevant services.

105

Each business unit faces the ongoing 
risk of market entry by new operators 
and service providers (including 
non-telecommunications players) 
that, by using newer or lower cost 
technologies, may succeed in rapidly 
attracting customers away from 
established market participants. Our 
business may also incur substantial 
development expenditure to gain 
access to related or enabling 
technologies to pursue new growth 
opportunities in the business, e.g. 
the ICT industry. The challenge is 
to modify our existing infrastructure 
and processes in a timely and cost-
effective manner to facilitate such 
implementation, failing which this 
could adversely affect our quality 
of service, financial condition and 
operational performance.

We continue to invest in upgrading, 
modernising and equipping our 
systems with new capabilities 
to ensure we are able to deliver 
innovative and relevant services to 
our customers.  

VENDOR/SUPPLY CHAIN RISKS
We rely on third-party vendors 
and their extended supply chain 
in many aspects of our business 
for various purposes, including, 
but not limited to, the construction, 
operations and maintenance of our 
network, the supply of handsets and 
equipment, systems and application 
development services, content 
provision and customer acquisition. 
Accordingly, our operations may be 
affected by third-party vendors or 
their supply chain failing to perform 
their obligations. In addition, the 
industry is dominated by a few 
key vendors for such services 
and equipment, and any failure or 
refusal by a key vendor to provide 

such services or equipment, or any 
consolidation of the industry, may 
significantly affect our business and 
operations.

We monitor our relationships with 
key vendors closely and develop 
new relationships to mitigate supply 
risks. We have in place a Sustainable 
Supply Chain strategy and framework 
to manage risks that may exist in our 
extended supply chain. 

INFORMATION TECHNOLOGY 
RISKS
Our businesses and operations rely 
heavily on information technology 
and we have established the Cyber 
Security Resiliency Committee 
to provide oversight of all IT and 
network security risks, including 
cyber security threats and data 
privacy breaches. The committee is 
chaired by CEO Group Enterprise 
and comprises senior members 
from the businesses, various IT 
and network domains and meets 
on a regular basis. The committee 
develops appropriate policies and 
frameworks to ensure information 
system security, reviews the projects 
and initiatives on IT and network 
security, reviews IT security incidents, 
and establishes overall governance 
by performing audits and cyber 
security drills. 

We have established a Group 
Cyber Security Policy for managing 
risks associated with information 
security. The policy is developed 
based on industry best practices 
and is aligned with international 
standards such as ISO 27001. The 
policy covers holistically various 
aspects of IT risk governance, 
including change management, 
user access management, database 
configuration standards and disaster 
recovery planning, and provides 
the cornerstone for driving robust IT 
security controls across the Group. 

We have also established a Project 
Management Methodology to ensure 
that new systems are developed with 

Risk Management Philosophy and Approachappropriate IT security controls and 
are subject to rigorous acceptance 
tests, including penetration testing, 
prior to implementation. 

CYBER SECURITY RISKS
The scale and level of sophistication 
of cyber security threats have 
increased with the changing tactics 
and tools by cyber attackers, 
ranging from terrorist attacks, 
state-sponsored hacking, black-hat 
hacking or even internal threats 
and ransomware. As our business is 
heavily dependent on the resiliency 
of our network infrastructure, and 
supporting systems, we are exposed 
to cyber security threats which 
can result in disruptions to our 
network and services provided to 
customers, and leakage of sensitive 
and / or confidential information. 
The exposure is further intensified 
with the growing dependency on 
uninterrupted connectivity and smart 
devices by our customers, and can 
lead to impact on our reputation, 
litigation from customers and/or 
regulatory fines and penalties. 

Group Enterprise is growing our 
cyber security business globally. 
The failure to keep up with and 
counteract increasing cyber security 
threats can materially and adversely 
affect our reputation, cyber security 
business and growth strategy. 

To combat these threats, we adopt a 
holistic approach by keeping abreast 
of the threat landscape and business 
environment as well as implementing 
a multi-layered security framework to 
ensure there are relevant preventive, 
detective and recovery measures.  
This includes training our people to 
adopt a security first mindset and be 
vigilant to the latest cyber threats. 
This mindset translates to a security 
by design principle when we create 
our products and services from idea, 
inception to launch. 

We have been building our 
capabilities organically, through 
investments as well as partnerships 

with best-of-breed technology 
partners. To date, we have 2,000 
cyber security professionals, 
global security operations and 
engineering centres as well as a 
specialised team of ethical hackers 
and forensic experts in assisting 
various businesses to manage 
vulnerabilities and threats, achieve 
compliance with regulations and 
implement secure solutions. The 
Group’s Cyber Security Institute 
conducts training programmes to 
enhance the cyber security skills and 
preparedness of our staff as well as 
our customers, including businesses 
and governments in Asia Pacific. 
The Group has also invested in a 
research and development lab to 
drive innovation in this area. 

DATA PROTECTION AND PRIVACY 
RISKS
We seek to protect the data privacy 
of our customers in our networks and 
systems infrastructure. Significant 
failure of security measures may 
undermine customer confidence and 
result in litigation from customers 
and/or regulatory fines and penalties. 
We may also be subject to the 
imposition of additional regulatory 
measures relating to the security and 
privacy of customer data.

We continue to ensure data privacy 
by protecting personal data of our 
customers and staff. We also ensure 
compliance with applicable privacy 
laws, and perform regular reviews 
in order to refine our practices. We 
have implemented security policies, 
procedures, technologies and tools 
designed to minimise the risk of 
privacy breaches. We have also 
established an escalation process 
for incident management, which 
includes security breaches to ensure 
timely response, internally and 
externally, to minimise impact.

FINANCIAL RISKS
The main risks arising from our 
financial assets and liabilities are 
foreign exchange, interest rate, 
market, liquidity, access to financing 

sources and increased credit risks. 
Financial markets continue to be 
volatile and this may heighten 
execution risk for funding activities 
and credit risk premiums for market 
participants.

We are exposed to foreign exchange 
fluctuations from our operations 
and through subsidiaries as well 
as associates and joint ventures 
operating in foreign countries. 
These relate to the translation of 
the foreign currency earnings and 
carrying values of our overseas 
operations. Additionally, a significant 
portion of associates and joint 
ventures purchases and liabilities are 
denominated in foreign currencies, 
versus the local currency of the 
respective operations. This gives rise 
to changes in cost structures and fair 
value gains or losses when marked 
to market.

We have established policies, 
guidelines and control procedures to 
manage and report exposure to such 
risks. Our financial risk management 
is discussed further on page 227 in 
Note 34 to the Financial Statements. 

NETWORK FAILURE AND 
CATASTROPHIC RISKS
The telecommunications industry 
faces a continuous challenge of 
providing fast, secure and reliable 
networks to an increasingly 
digital and connected world. The 
provision of our services depends 
on the quality, stability, resilience 
and robustness of our networks 
and systems. We face the risk of 
malfunction of, loss of, or damage to, 
network infrastructure from natural or 
other uncontrollable events such as 
acts of terrorism. 

Some of the countries in which 
we and/or our regional associates 
operate have experienced a number 
of major natural catastrophes over 
the years, including typhoons, 
droughts and earthquakes. Some 
of these catastrophes have also 
increased in intensity and frequency 

106

Singapore Telecommunications Limited  |  Annual Report 2018the World Health Organisation (WHO). 
The ICNIRP standards are adopted 
by many countries around the world 
and are considered best practice. 
We continue to monitor research 
findings on EME, health risks and their 
implications on relevant standards 
and regulations.

CLIMATE CHANGE RISKS
Climate change is one of the key 
long-term global risks that has the 
potential to impact our operations, 
infrastructure and supply chain. 
There are also other energy security 
and regulatory risks associated with 
climate change, which could result in 
stricter emissions standards, carbon 
taxes or accompanying infrastructure 
investments for adaptation or 
mitigation. To address this concern, 
we adopted a two-pronged approach 
i.e. science based carbon reduction 
target and the upgrading of our 
infrastructure to adapt to long term 
climate change.

We have agreed to the Science 
Based Target initiative (SBTi) to 
address the continued impact of 
carbon and increasing temperatures. 
This approach progressively aligns 
our 2030 carbon contribution and 
reduction target with the agreements 
made at Paris COP 21. We adapt our 
infrastructure design and standards 
progressively to long-term scenarios 
related to climate change, such as 
increased risk of inundation and 
stronger cyclonic activities, rising 
temperatures and higher frequency 
of bush fires in Australia. We have 
also committed towards aligning our 
climate-related risks and financial 
reporting with the recommendations 
of the Task Force for Climate Related 
Financial Disclosures.

due to climate change factors, 
causing prolonged and exacerbated 
impact on our infrastructure and 
operations. In addition, other events 
that are/are not within our control 
and/or our regional associates’ 
control, such as fire, deliberate 
acts of sabotage, vendor failure/
negligence, industrial accidents, 
blackouts, terrorist attacks or 
criminal acts, could damage, cause 
operational interruptions or otherwise 
adversely affect any of the facilities 
and activities, as well as potentially 
cause injury or death to personnel. 
Such losses or damage may 
significantly disrupt our operations, 
which may materially adversely 
affect our ability to deliver services to 
customers. Sustained or significant 
disruption to our services can also 
significantly impact our reputation 
with our customers. Our inability to 
operate our networks or customer 
support systems may have a material 
impact on our business.

We continue to make our networks 
robust and resilient, and continually 
review our processes to prevent any 
network disruptions and to have an 
effective communication process for 
timely updates to our stakeholders 
during any incidents and/or crisis. 
There is a defined crisis management 
and escalation process for our CEOs 
and senior management to respond 
to emergencies and catastrophic 
events. Additional to key network 
infrastructure, we have business 
continuity plans and insurance 
programme and policies in place. 

TALENT MANAGEMENT RISKS
As we seek new avenues of growth, 
a key differentiator alongside access 
to innovation will be the ability to 
attract and sustain talent including 
new skills and capabilities. The loss 
of some or all of our key executives 
or the inability to attract or retain key 
talent, could materially and adversely 
affect our business.

We continue to invest in the skills of 

107

our existing workforce and build up 
our current and emerging capabilities 
through external professional hires 
and targeted campus recruitment. 
In order to develop and retain talent, 
we conduct regular skills assessment 
into the critical business areas and 
set out structured developmental 
roadmaps to fill new and emerging 
skills gaps. We have a targeted 
development approach to develop 
young, emerging and future technical 
and business leaders through formal 
learning activities, coaching and 
mentoring as well as providing critical 
experiences such as international 
assignments, rotations and special 
projects.

ELECTROMAGNETIC ENERGY RISKS
Health concerns have been raised 
globally about the potential exposure 
to Electromagnetic Energy (EME) 
emissions through using mobile 
handsets or being exposed to mobile 
transmission equipment. While there 
is no substantiated evidence of 
public health risks from exposure to 
the levels of EME typically emitted 
from mobile phones, perceived 
health risks can be a concern for 
our customers, the community, 
and regulators. Perceived health 
risks in terms of environmental 
exposures from mobile base station 
equipment can impact and cause 
concerns for the local communities 
on the implementation of new or 
upgrading of existing mobile base 
stations. This may impact the mobile 
coverage at that locality and also 
our mobile business. In addition, 
government legislations and industry 
requirements may be introduced to 
address this perceived risk, affecting 
our ability to deploy the mobile 
communications infrastructure.

We design and deploy our network 
to comply with the relevant 
government mandated standards for 
exposure to EME. Our standards are 
based upon those recommended 
by the International Commission on 
Non Ionizing Radiation Protection 
(ICNIRP), which is a related agency of 

Risk Management Philosophy and ApproachSustainability

At Singtel, we aim to make a difference in society as a sustainable business. We focus 
on four key pillars that remain relevant to the needs of the markets we operate in, and 
to our stakeholders. Our sustainability strategy strives to: 

•     minimise our environmental footprint;
•     develop our people; 
•     create social impact in our communities; and
•     uphold responsible business practices and maximise customer satisfaction.

Our sustainability efforts have been recognised by international awards and indices. We 
were named in the Financial Times Stock Exchange’s FTSE4Good Global index, which 
measures the performance of companies’ environmental, social and governance (ESG) 
practices. For the eighth consecutive year, we were recognised as one of the World’s 
Most Ethical Companies by Ethisphere in 2018. We were also listed in the annual Global 
100 Most Sustainable Corporations 2018 for the second time running. 

Last year, we conducted a refresh of our materiality review across the Group to 
identify key stakeholder concerns. This was approved by the Board and formed the 
basis of our current sustainability focus. Issues concerning customer data privacy and 
protection, climate change, diversity, online safety as well as responsible supply chain 
management took on stronger significance in our materiality assessment and hence in 
our sustainability strategy.

SEAN LOH JUNJIE  
Singtel Marcoms Manager

Sean volunteers under the Singtel Savvy 
Silvers programme to help the elderly connect 
with the digital world and learn to use 
technology. Whether he's teaching them how 
to navigate their way around with a mobile 
phone, or simply to take photos and videos, 
Sean is thrilled when his students 'get it'.

108

Singapore Telecommunications Limited  |  Annual Report 2018 
ENVIRONMENT – LEAVING THE SMALLEST FOOTPRINT

Our approach to a sustainable 
environment strategy for our 
Singapore and Australia businesses 
covers two key areas: climate change 
and product stewardship.

As our business grows and we 
extend our infrastructure and 
networks, Singtel is committed to 
optimising energy efficiency to 
minimise our environmental impact 
and reduce our carbon footprint in 
the long term.

Our 2030 carbon reduction targets 
were approved by the Science Based 
Targets initiative in October 2017, 
a global group which recognises 
organisations aligned with the  
COP21 Paris Agreement. We were 
also one of the first companies 
worldwide that endorsed the 
climate risk reporting framework 
recommended by the G20 Financial 
Stability Board’s Task Force on 
Climate-related Financial Disclosures 
in June 2017. We will enhance 
our disclosures of climate-related 
financial and risk information, and 
work progressively towards this 
reporting framework. 

Through Optus, we continue to 
play an active role in the Australian 
Business Roundtable for Disaster 
Resilience and Safer Communities. 
This involves undertaking research, 
recommending policy and engaging 
stakeholders on the need to make  
Australian communities and 
infrastructure safer and more resilient 
to natural disasters.

Engaging and educating stakeholders 
on the impact of e-waste on the 
environment is important to us. 

109

Unwanted electronic items can be conveniently dropped into ReCYCLE bins at selected  
Singtel stores and post offices.

Our efforts to reduce greenhouse 
gas emissions and mitigate climate-
related risks were recognised by 
CDP, the global environmental 
disclosure platform. We achieved 
an A- “Leadership level” score for 
climate disclosure in CDP 2017.  

In addition, we won Asia’s Best 
Carbon Disclosure award at the Asia 
Sustainability Reporting Awards 2017.

We have set carbon reduction targets 
to reduce absolute direct and indirect 
carbon emissions in our Singapore 
and Australia operations by

and third-party emissions by

42% 
30%

by 2030 from base year 2015

We offer a buy-back scheme for 
customers to trade in used phones 
and provide recycling facilities at 
our retail shops in Singapore and 
Australia. 

In conjunction with World 
Environment Day last year, Singtel 
and SingPost launched a nationwide 
e-waste ReCYCLE programme. 
People can dispose of their  
e-waste at selected Singtel shops, 
exclusive retailers and post offices 
with a ReCYCLE bin, or mail their  
old mobile phones and accessories 
in special ReCYCLE envelopes 
at their convenience. ReCYCLE 
collected 9,677 kg (net weight) of 
e-waste as at 31 March 2018, 2.5 
times more than previous years. In 
Australia, Optus continues to  
support the Mobile Muster 
programme, where customers take 
their old mobile phones to any  
Optus retail outlet for recycling.  
Last year, 4,251 kg of handsets, 
batteries and accessories were 
collected for recycling.

SustainabilityOUR PEOPLE – DEVELOPING AND CARING FOR OUR EMPLOYEES,  
OUR GREATEST ASSET

HELPING OUR PEOPLE FLOURISH
Our people are our most important 
asset and key to sustainable,  
long-term growth. In FY 2018,  
we invested S$31 million in staff 
learning and development in both 
Singapore and Australia, and invested 
an average of 29.2 training hours 
per employee. 

To improve the digital literacy of 
employees and empower them in 
a landscape of rapid changes and 
constant disruption, we piloted the 
SkillsFuture for Digital Workplace 
training programme to build future 

skills across our workforce. These 
customised training programmes 
ride on the SkillsFuture Singapore 
initiative to equip everyone with the 
mindset and basic functional skills to 
prepare for the future economy.

Our leadership development efforts  
are focused on building enterprise 
leadership, leadership brand, 
business acumen and innovation. 
During the year, we launched three 
new leadership initiatives: SCORE+ 
Leadership Programme, the SCORE 
Development Centre and Enterprise 
Leadership Programme to prepare 

our leaders to lead in the disruptive 
digital business landscape. 

To address the industry’s increasingly 
pressing need for highly skilled 
professionals in the digital economy, 
we need to constantly build and 
nuture a robust young talent pool. In 
FY 2018, we awarded S$2.7 million in 
scholarships and apprenticeships to 
72 university and polytechnic students. 
We have supported more than 280 
students through our internship and 
scholarship programmes.

NICK MALHAM 

Optus Product and Digital Lead

Nick realised there was a growing digital divide 
between those who had internet access and 
the disadvantaged who could not afford it. In 
an Australian first, he conceived the Donate 
Your Data programme for Optus customers to 
donate unused data, enabling disadvantaged 
youths to access technology for their education.

110

Singapore Telecommunications Limited  |  Annual Report 2018BUILDING A DIVERSE AND 
INCLUSIVE WORKFORCE
Singtel values a diverse workforce. 
This is especially important given 
the global and diverse nature of the 
Group’s business, as well as the fast-
changing digital economy. Women 
represent 34% of our staff across the 
Group, 26% of our upper and middle 
management positions as well as 
a third of our Board positions. As a 
group, we are an equal opportunity 
employer with more than 25,000 
employees of about 90 different 
nationalities. 

In Australia, Optus introduced  
Happy People, a targeted health  
and wellness programme for 
employees to improve their energy, 
sleep, mood and stress levels. 

We engaged employees in 
Singapore with a Health and 
Wellness Carnival as well as a  
one-stop health information  
portal. We also encouraged them 
to take part in the Health Promotion 
Board’s National Steps Corporate 
Challenge 2017, which saw more  
than 2,800 Singtel participants.

We have more than 

employees of about

25,000 
90

nationalities

In Australia, Optus continues to work 
on increasing the representation 
of women in senior leadership 
and key technical roles, and we 
have implemented initiatives to 
encourage networking and leadership 
development. Internships are offered 
to Indigenous Australians to provide 
an opportunity for skills development 
and first-hand work experience.

KEEPING EMPLOYEES ENGAGED 
AND HEALTHY
We recognise that happy employees 
are the most engaged and productive. 
Besides maintaining a healthy staff 
engagement score of 79, our results 
from the Singtel Group Your Voice 
Survey 2017 showed that 14% more 
employees felt empowered to come 
up with solutions that better serve 
customers. Compared to last year, 
10% more employees felt Singtel has 
an excellent reputation among the 
community.

We encourage healthy living and build 
a healthy workplace by promoting 
mental well-being, physical fitness, 
encouraging good nutrition habits and 
effective management of work and 
family commitments.  

111

GENDER DISTRIBUTION

Singtel

Optus

Female 
Male

35%
65%

Female 
Male

32%
68%

AGE DISTRIBUTION

Singtel

Optus

<30 years old 
30-49 years old
≥ 50 years old

21%
59%
20%

<30 years old 
30-49 years old
≥ 50 years old

23%
60%
17%

SustainabilityCOMMUNITY – CREATING POSITIVE SOCIAL IMPACT WITH THE  
MOST CONNECTED COMMUNITIES

We are committed to driving  
positive change by empowering  
the vulnerable and disadvantaged  
in our communities, through 
corporate giving, volunteerism 
and driving social change through 
innovation.

GIVING TIME AND TALENT 
We give employees one day of  
paid leave per year to volunteer  
for causes they are passionate 
about. Singtel business units are also 
encouraged to adopt VolunTeaming, 
or department team building with a 
volunteering element. Last year, the 
annual Singtel Carnival hosted 1,500 
students from special education 

schools, including beneficiaries of 
the Singtel Touching Lives Fund. Two 
thousand staff volunteers planned 
and organised the event, which is 
now in its fifth year. 

In Australia, Optus employees  
are similarly enthusiastic about 
volunteering and advocate 
developing the education and 
employability opportunities for 
youths. Since becoming a founding 
member of the Australian Business 
and Community Network in 2008,  
we have helped build the skills and 
raise the aspirations of over 7,700 
students across Australia through 
mentoring and workshop facilitation.

Singtel Touching  
Lives Fund  
has raised

S$39m since 2002

Optus employee giving platform, 
yes4Good, has raised over

A$5.6m

since 2006

We spent

27,628

hours in staff  
volunteering in  
Singapore and Australia

Australian students learn how to use technology safely and responsibly at a Digital Thumbprint workshop organised by Optus and Kids Helpline.

112

Singapore Telecommunications Limited  |  Annual Report 2018collaborations, global dialogue and 
research. 

#DQEveryChild aims to nurture 
and measure digital intelligence 
among children. A pilot study 
of #DQEveryChild conducted 
in Singapore last year found 
that children who completed 
the programme showed a 13% 
improvement in their Digital 
Intelligence Quotient or DQ score  
and a corresponding 18% reduction  
in cyber risks.

With a combination of online 
education tools and real-time 
assessment, the 8- to 12-year-olds 
learnt to deal with cyber issues and 
use digital technology responsibly 
and safely.

The programme will be rolled out to 
all primary schools in Singapore after 
the successful pilot.

Our Digital Thumbprint Programme in 
Singapore and Australia has reached

430,000

students 
since 2013

through

7,500  

sessions 

in 1,400  

primary and 
secondary schools

Primary school students learn how to use the internet safely and responsibly at the #DQEvery-
Child workshop organised in collaboration with the DQ Institute.

We have also widened the scope of 
skills-based volunteering, such as 
in our Singtel Group Future Makers 
social innovation programme.

The spirit of giving back transcends 
boundaries as employees across the 
Group actively participate in “Better 
Together”, our annual overseas 
volunteering programme. More 
than 70 volunteers from Airtel, AIS, 
Globe, Optus and Singtel participated 
in three community projects in 
India, Thailand and the Philippines. 
Volunteers conducted English 
lessons for Bharti Foundation school 
students, organised an English 
camp for scholarship holders of AIS' 
Good Kids Great Hearts programme, 
and held cyber wellness lessons 
for children from economically 
disadvantaged families and a 
shoreline clean-up in the respective 
countries.

PROMOTING CYBER WELLNESS 
AND DIGITAL INTELLIGENCE
Singtel is committed to creating 
empowered, educated and 
responsible digital citizens who 
thrive in today’s digital world. We 
strive to protect their well-being by 
equipping them with the knowledge 

113

and behaviour they need to benefit 
from the power of technology while 
staying safe online.

Our Digital Thumbprint Programme 
partners community organisations  
to deliver workshops teaching 
primary and secondary school 
students positive online behaviour. 
Introduced in 2013, the programme 
has reached over 430,000 students 
in Singapore and Australia. A similar 
programme run by Globe in the 
Philippines has also reached 
over 16,000 students since 2016. 
To augment the workshops, we 
organised our inaugural Digital 
Smarts Day at the Optus campus 
in Sydney, Australia. A team of staff 
volunteers educated primary and  
high school students on digital 
citizenship and online safety in a  
fun and interactive way. 

Singtel is also a strategic partner 
of the #DQEveryChild programme, 
following our collaboration with  
the DQ Institute. The DQ Institute 
is an international coalition 
spearheaded by Singtel and NTU  
in association with the World 
Economic Forum to improve digital 
education through cross-sector 

SustainabilityTAY WEI YI 

Singtel Business Development Manager

Wei Yi regularly provides advice and mentorship in 
the Singtel Future Makers programme, volunteering 
his expertise to social entrepreneurs and start-ups 
which create technological innovations that enhance 
our lives. Here, he shares his knowledge on smart 
living with Japhia Yeo of healthcare start-up Jaga-
Me, which developed an online platform matching 
professional caregivers with patients at home.

THE MARKETPLACE AND OUR CUSTOMERS – ENSURING THE BEST EXPERIENCE 
THROUGH RESPONSIBLE BUSINESS PRACTICES AND INNOVATION

Our commitment to embrace 
responsible business practices 
includes having a responsible supply 
chain. We continue to make progress 
on our risk assessments of our key 
suppliers and engage them for self-
assessments of their material risks. 
We engaged our regional associates 
to align our supply chain risk 
categories and implement common 
principles under our Group Supplier 
Code of Conduct. Through Optus, 
we meet the requirements of the 
Australian Government’s Indigenous 
Opportunity Policy, and will engage 
Indigenous business suppliers as part 
of our wider inclusion strategy. 

Data privacy and protection is a key 
concern in our supply chain and to 
our stakeholders. We rolled out a 
Data Protection Impact Assessment 
process last year to identify and 
assess personal data protection 
risks in our systems or processes, 

with recommendations to address 
them. To help our enterprise 
customers protect their own data 
and their customer data, we offer 
cyber security solutions with real-
time monitoring, response and 
remediation against advanced and 
evolving cyber threats.

Our Singtel Group Future Makers 
programme in Singapore and 
Australia continued to support 
social entrepreneurs that leverage 
technological innovation to address 
social causes and scale their impact 
in the community.

In 2017, the Future Makers 
programme was extended to Globe 
in the Philippines. Winning teams 
were chosen for the viability of their 
solutions, their progress made and 
scalability into the communities 
they benefit. We funded more than 
S$500,000 in local and regional 

grants, while extending support 
such as mentorship by cross-sector 
experts, competency workshops, as 
well as networking and collaborative 
opportunities with Singtel and our 
partners.

For the first time last year, six finalists 
from the local tracks were incepted 
into the Singtel Group Future Makers 
2017 regional round in Sydney, 
Australia, to pitch for additional 
funding and regional capacity-
building support. The start-up teams 
pitched for a total of S$100,000 in 
additional funding for innovations 
such as a mobility solution and a 
work-matching platform for persons 
with disabilities. 

More information on our sustainability 
efforts can be found in the Singtel 
Group Sustainability Report 2018 at 
singtel.com/sr2018.

114

Singapore Telecommunications Limited  |  Annual Report 2018KEY ENVIRONMENTAL AND SOCIAL PERFORMANCE INDICATORS

Singapore

Australia

2018

2017

2018

2017

Environmental Performance (1)

Energy use (GJ) 

1,395,100

1,404,843

1,724,106

1,702,440

Carbon footprint (tonnes CO2 equivalent) 

174,391

173,811

418,760

418,269

Water use (cubic metres) 

752,207

814,447

74,235 (2)

82,111 (2)

Hazardous and non-hazardous wastes (tonnes)

6,289

4,613

2,197 (3)

1,853 (3)

Social Performance – People

Employee turnover (%)

Employee turnover by gender (%)

– Male

 –  Female

Average training hours per employee

Employee health and safety (4)

– Workplace injury incidence rate

– Workplace injury frequency rate

– Workplace injury severity rate

Social Performance – Community

Community investment ($ million) (5)

Total volunteering hours

17.1

16.4

15.4

15.4

11.1

6.0

30.6

2.1

0.9

14.7

10.7

5.7

30.4

1.3

0.6

3.3

9.7

5.7

27.6

4.1

2.8

7.3

9.7

5.7

30.9

1.3

0.8

8.7

S$7.5

15,500

S$8.3

17,140

A$9.4

12,128

A$8.2

16,420

Notes:
( 1 )     Please refer to the Singtel Group and Optus sustainability reports for the reporting scope of environmental indicators.
(2)     Water use for Optus Sydney Campus only.
(3)     Waste across facility under Optus waste direct contract and not inclusive of all sites.
(4)     Workplace safety and health metrics based on the International Labour Organization (ILO) definitions. 
(5)     Community investment has been verified by The London Benchmarking Group (LBG).

For more details and audited statistics, refer to our Sustainability Report at singtel.com/sr2018.

115

SustainabilityGroup Five-year
Financial Summary

Income Statement (S$ million)
Group operating revenue 

Singtel 
Optus
Optus (A$ million)

Group EBITDA 
Singtel
Optus
Optus (A$ million)

Share of associates' pre-tax profits 
Group EBITDA and share of associates' pre-tax profits 
Group EBIT 
Net profit after tax
Underlying net profit (2)
Exchange rate (A$ against S$) (3)

Cash Flow (S$ million)
Group free cash flow (4)

Singtel

Optus
Optus (A$ million)
Associates' dividends (net of withholding tax)

Cash capital expenditure

Balance Sheet (S$ million)
Total assets 
Shareholders' funds
Net debt 

Key Ratios
Proportionate EBITDA from outside Singapore (%)
Return on invested capital (%) (5)
Return on equity (%)
Return on total assets (%)
Net debt to EBITDA and share of associates'

pre-tax profits (number of times) 

EBITDA and share of associates' pre-tax profits
to net interest expense (number of times) 

Per Share Information (S cents)
Earnings per share - basic
Earnings per share - underlying net profit (2)
Net assets per share
Dividend per share - ordinary
Dividend per share - special

 ''Singtel'' refers to the Singtel Group excluding Optus.

Financial Year ended 31 March

2018

Restated ( 1 )
2017

2017

2016

2015

2014

17,532
8,396
9,136
8,710

5,089
2,181
2,909
2,774

2,461
 7,550 
 5,210 
5,451

3,544

1.049

3,606
1,126
989
948
1,492
2,349

16,711
7,928
8,784
8,425

4,998
2,213
2,784
2,669

2,886
 7,884 
 5,645 
3,853

3,871

1.043

3,054
1,040
514
500
1,500
2,261

16,711
7,928
8,784
8,425

4,998
2,213
2,784
2,669

2,942
 7,939 
 5,701 
3,853

3,915

1.043

3,054
1,040
514
500
1,500
2,261

16,961
7,663
9,298
9,115

5,013
2,187
2,825
2,771

2,791
 7,804 
 5,655 
3,871

3,805

1.020

2,718
869
631
617
1,218
1,930

17,223
7,348
9,875
8,790

5,091
2,146
2,945
2,624

2,579
 7,670 
 5,508 
3,782

3,779

1.123

3,549
1,379
1,070
976
1,100
2,238

16,848
6,912
9,936
8,466

5,155
2,223
2,932
2,502

2,201
 7,357 
 5,224 
3,652

3,610

1.174

3,249
1,181
1,020
903
1,048
2,102

48,254
29,679
9,820

48,294
28,214
10,384

48,294
28,214
10,384

43,566
24,989
9,142

42,067
24,733
7,963

39,320
23,868
7,534

77
14.7
 18.8 
 11.2 

75
 10.9 
 14.5 
 8.3 

75
 11.1 
 14.5 
 8.3 

74
 11.7 
 15.6 
 9.0 

74
 12.1 
 15.6 
 9.3 

73
 11.6 
 15.3 
 9.2 

 1.3 

 1.3 

 1.3 

 1.2 

 1.0 

 1.0 

 20.2 

 23.4 

 23.6 

 25.3 

 29.2 

 28.7 

33.40
21.71
182
17.5
 3.0 

23.96
24.07
173
17.5
 - 

23.96
24.35
173
17.5
 - 

24.29
23.88
157
17.5
 - 

23.73
23.71
155
17.5
 - 

22.92
22.65
150
16.8
 - 

Notes:
( 1 )     FY 2017 have been restated to reclassify AIS’ 3G/4G handset subsidy costs from exceptional items of the Group to share of associates’ profits to be consistent with  

FY 2018.

(2)     Underlying net profit is defined as net profit before exceptional items. 
(3)     Average A$ rate for translation of Optus' operating revenue.
(4)     Free cash flow refers to cash flow from operating activities, including dividends from associates, less cash capital expenditure. 
(5)     Return on invested capital is defined as EBIT (post-tax) divided by average capital. For FY 2018, EBIT included the gain on disposal of economic interest in NetLink 

Trust.

116

Singapore Telecommunications Limited  |  Annual Report 20185-YEAR FINANCIAL REVIEW 

FY 2018
The Group delivered record earnings 
for FY 2018 with net profit of S$5.45 
billion bolstered by exceptional gain 
of S$2.03 billion from the divestment 
of NetLink Trust and a strong core 
performance. Operating revenue 
was S$17.53 billion, 4.9% higher than 
FY 2017, while EBITDA rose 1.8% 
to S$5.09 billion reflecting strong 
customer gains in Australia and first 
time contribution from Turn (acquired 
by Amobee in April 2017). In constant 
currency terms, operating revenue 
and EBITDA increased by 4.7% and 
1.5% respectively. 

The associates’ pre-tax contributions 
declined 15% to S$2.46 billion on 
weaker earnings from Airtel India 
and Telkomsel impacted by intense 
competition and mandated reduction 
in mobile termination charges in 
India, as well as lower contribution 
from NetLink NBN Trust following 
the reduction in economic interest 
of 75.2% in July 2017. The decline 
was partly mitigated by higher 
contribution from Intouch (acquired in 
November 2016).

With lower associates’ contributions, 
higher depreciation and amortisation 
charges on network investments 
and spectrum, as well as increased 
net finance expense, underlying net 
profit declined by 8.4%. 

FY 2017
The Group delivered resilient 
earnings amid heightened 
competition across all the markets 
the Group operated in. Operating 
revenue was S$16.71 billion, 1.5% 
lower than FY 2016 but would have 
increased 2.0% excluding the impact 
of regulatory mobile termination 
rates change in Australia from 1 
January 2016. EBITDA remained 
stable at S$5.0 billion. The Australian 
Dollar appreciated 2% against the 
Singapore Dollar from a year ago. In 
constant currency terms, operating 
revenue and EBITDA decreased by 
2.6% and 1.5% respectively. 

The associates’ pre-tax contributions 
rose 5.4% to S$2.94 billion despite 
weakness in Airtel which faced 
intense price competition in India. 

117

Strong growth at Telkomsel and 
NetLink Trust, as well as first time 
contribution from Intouch (acquired in 
November 2016) was partly offset by 
lower profits at Airtel, AIS and Globe. 

4% against the Singapore Dollar. In 
constant currency terms, revenue 
grew 4.8% and EBITDA rose 1.3% 
despite operating losses from the 
digital businesses. 

Underlying net profit grew 2.9% and 
net profit was stable at S$3.85 billion 
with an exceptional loss compared to 
an exceptional gain in FY 2016. 

FY 2016
The Group delivered a strong 
performance with resilient core 
business and robust contributions 
from associates. Operating revenue 
was S$16.96 billion, 1.5% lower than 
FY 2015 with the Australian Dollar 
declining a steep 9% against the 
Singapore Dollar and the impact 
of lower mobile termination rates 
in Australia from 1 January 2016. In 
constant currency terms, operating 
revenue would have grown 4.1% 
across all business units with first 
time contribution from Trustwave, 
Inc. (a newly acquired cyber security 
business). EBITDA was S$5.01 
billion, 1.5% lower than FY 2015 and 
in constant currency terms, would 
have increased 4.1% with strong cost 
management. 

The associates’ pre-tax contributions 
rose 8.2% to S$2.79 billion and would 
have increased 9.7% excluding the 
currency translation impact. The 
regional associates recorded strong 
customer growth and robust mobile 
data growth, with higher earnings 
from Telkomsel and Globe offsetting 
the decline in Airtel. 

Underlying net profit was stable 
and net profit including exceptional 
items increased 2.4% to S$3.87 
billion. In constant currency terms, 
underlying net profit and net profit 
would have increased 4.0% and 5.5% 
respectively from FY 2015. 

FY 2015
The Group delivered a strong set 
of results. Operating revenue was 
S$17.22 billion, 2.2% higher than 
FY 2014 with growth across all the 
business units. EBITDA was S$5.09 
billion, 1.3% lower than FY 2014 with 
the Australian Dollar weakening 

The associates’ pre-tax contributions 
rose strongly by 17% to S$2.58 billion 
and would have increased 21% 
excluding the currency translation 
impact. The regional associates 
registered strong customer growth 
and increased demand for mobile 
data services, with earnings growth 
led by Airtel India, Telkomsel and 
Globe. 

Underlying net profit grew 4.7% and 
net profit including exceptional items 
increased 3.5% to S$3.78 billion. In 
constant currency terms, underlying 
net profit and net profit would have 
increased 7.5% and 6.2% respectively 
from FY 2014. 

FY 2014
The Group delivered a resilient 
performance against industry 
challenges and currency headwinds. 
Operating revenue was S$16.85 
billion, 7.3% lower than FY 2013 with 
the Australian Dollar weakening 
8% against the Singapore Dollar. In 
constant currency terms, revenue 
would have declined 2.3% with lower 
mobile revenue in Australia and a 
cautious business climate. EBITDA 
was relatively stable at S$5.16 billion 
but in constant currency terms 
increased 4.5% on an improved cost 
structure.   

The associates’ pre-tax contributions 
rose 4.5% to S$2.20 billion and 
would have increased strongly 
by 13% excluding the currency 
translation impact. The regional 
associates registered robust demand 
for mobile data services, with 
earnings growth led by Airtel India. 

Underlying net profit was stable at 
S$3.61 billion and net profit including 
exceptional items grew 4.1% to 
S$3.65 billion. In constant currency 
terms, underlying net profit and net 
profit would have increased 5.9% 
and 10% respectively from FY 2013. 

Group Five-yearFinancial Summary 
Group Value Added 
Statements

GROUP VALUE ADDED STATEMENTS

PRODUCTIVITY DATA

Value added from:

Operating revenue 
Less: Purchase of goods and services 

Other income 
Interest and investment income (net)
Share of results of associates (post-tax)
Exceptional items 

FY 2018

S$ million 

FY 2017

S$ million 

 17,532 

 (10,049)

 7,483 

 259 

 46 

 1,787 

 1,940 

 4,032 

 16,711 

 (9,406)

 7,306 

 215 

 115 

2,017  

(1)

 2,346 

Total value added

 11,514

 9,652

Distribution of total value added

To employees in wages, salaries and benefits 
To government in income and other taxes
To providers of capital on:
- Interest on borrowings 
- Dividends to shareholders 

Total distribution

Retained in business

Depreciation and amortisation 
Retained profits
Non-controlling interests 

 2,652 

 701 

 390 

 3,346 

 2,523 

 684 

 374 

 2,816 

 7,090 

 6,398 

 2,340 

 2,105 

 (21)

 4,424 

 2,239 

 1,037 

 (22)

 3,254 

Total value added

 11,514 

 9,652 

Average number of employees

 25,614 

 25,590 

VALUE ADDED 
(S$ million)

2018

2017

 11,514 

 +1,862 

 9,652 

VALUE ADDED PER EMPLOYEE 
(S$'000)

2018

2017

 450

 +73

 377 

VALUE ADDED PER DOLLAR 
OF EMPLOYEE COSTS 
(S$)

2018

2017

 4.34 

+0.52

 3.82

VALUE ADDED PER DOLLAR 
OF TURNOVER 
(S$)

2018

2017

 0.66 

 0.58 

+0.08

118

Singapore Telecommunications Limited  |  Annual Report 2018GROUP

Operating revenue

EBITDA 

EBITDA margin

Financial Year Ended 31 March

2018
(S$ miIlion)

2017
(S$ million)

Change (%)

 17,532 

 16,711 

 5,089 

 4,998 

29.0%

29.9%

4.9

1.8

Change in 
constant  
currency  
(%)

(1 )

4.7

1.5

Share of associates' pre-tax profits (2)

 2,461 

 2,886 

-14.7

-13.5

EBIT (2)

(exclude share of associates' pre-tax profits)

Net finance expense

Taxation (2)

Underlying net profit (2) (3)

Underlying earnings per share (S cents) (2)

Exceptional items (post-tax) (2)

Net profit 

 5,210 

 2,749 

 5,645 

 2,759 

 (345)

 (260)

-7.7

-0.4

32.8

 (1,343)

 (1,536)

-12.6

 3,544 

 3,871 

21.7 

 1,908 

24.1 

 (18)

 5,451 

 3,853 

-8.4

-9.8

nm

41.5

39.4

-11.0

-7.2

-0.7

32.1

-12.4

-7.8

-10.0

nm

42.2

38.8

-9.6

Basic earnings per share (S cents)

 33.4 

 24.0 

Share of associates' post-tax profits (2)

 1,823 

 2,048 

‘’Associate’’ refers to either an associate or a joint venture as defined under Singapore Financial Reporting Standards. 
“nm” denotes not meaningful.

Notes:
( 1 )     Assuming constant exchange rates for the Australian Dollar, United States Dollar and/or regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso and 

Thai Baht) from the previous year ended 31 March 2017 (FY 2017). 

(2)     Comparatives have been restated to reclassify AIS’ 3G/4G handset subsidy costs from exceptional items of the Group to share of associates’ results to be consistent 

with FY 2018. 

(3)     Underlying net profit refers to net profit before exceptional items.

119

Management Discussion and AnalysisThe Group performed in line with its 
guidance for the financial year ended 
31 March 2018. 

Net profit for the year hit a new 
high, rising a robust 42% to S$5.45 
billion. This was due to exceptional 
divestment gains from NetLink Trust 
and a strong performance from the 
core business.

Group and its regional associates 
reached 706 million in 21 countries 
as at 31 March 2018, up 11% or 68 
million from a year ago. Singtel has 
strengthened its collaborations with 
the regional associates to build an 
ecosystem of digital services by 
leveraging the Group's strengths 
and customer base across these 
countries.

Operating revenue surged 4.9% and 
EBITDA rose 1.8%, reflecting strong 
execution in Australia Consumer 
and the digital businesses following 
the acquisition of Turn in April 
2017. Revenue from ICT and digital 
businesses increased a strong 19% 
to S$4.18 billion and contributed 24% 
of the Group’s revenue, up from 21% 
last year. 

The associates’ post-tax underlying 
profit contributions declined by 
11% on weaker earnings from Airtel 
and Telkomsel as well as lower 
contribution from NetLink NBN Trust 
following the reduction in economic 
interest of 75.2% in July 2017. The 
decline was partly mitigated by 
higher contribution from Intouch 
(acquired in November 2016).  

Depreciation and amortisation 
charges increased on higher 
investments in mobile infrastructure 
network and spectrum across the 
Group. 

Consequently, the Group’s EBIT 
(before the associates’ contributions) 
was stable.

In the emerging markets, the regional 
associates continued to win new 
customers and drive data growth 
with investments in network and 
spectrum. The customer base of the 

Airtel’s results were impacted by 
continued intense competition with 
aggressive pricing led by a new 
player and further aggravated by 
mandated cuts in mobile termination 
rates in India, partly mitigated 
by continued positive growth 
momentum in Africa. Telkomsel’s 
earnings fell on softer revenue 
growth amid heightened price 
competition in data and steep 
declines in voice and SMS revenues, 
coupled with higher depreciation 
charges and a weaker Indonesian 
Rupiah against the Singapore Dollar.

Including the associates’ 
contributions, the Group’s EBIT 
declined by 7.7% to S$5.21 billion.

Net finance expense increased 
33% on lower dividend income from 
the Southern Cross consortium, 
decline in net interest income from 
NetLink Trust with the repayment 
of unitholder loan in July 2017, as 
well as higher interest expense on 
increased average borrowings. 

With lower associates’ contributions, 
higher depreciation and amortisation 
charges as well as increased net 
finance expense, underlying net 
profit declined by 8.4% for the year.

The Group has successfully 
diversified its earnings base through 
its expansion and investments in 
overseas markets. Hence, the Group 
is exposed to currency movements. 
On a proportionate basis if the 
associates are consolidated line-by-
line, operations outside Singapore 
accounted for three-quarters of both 
the Group’s proportionate revenue 
and EBITDA.

120

Singapore Telecommunications Limited  |  Annual Report 2018BUSINESS SEGMENT

Operating revenue
- Group Consumer 
- Group Enterprise 
Core Business 
- Group Digital Life 

Group 

EBITDA 
- Group Consumer 
- Group Enterprise 
Core Business 
- Group Digital Life 
- Corporate 

Group

EBIT (before share of associates' pre-tax profits)
- Group Consumer 
- Group Enterprise 
Core Business 
- Group Digital Life 
- Corporate 

Group

“**” denotes less than 0.5%.

Financial Year Ended 31 March

2018
(S$ miIlion)

2017
(S$ million)

Change (%)

Change in 
constant  
currency  
(%)

(1 )

 9,826 

 6,625 

 16,452 

1,080 

 9,572 

 6,600 

 16,172 

539 

2.7

0.4

1.7

2.2

0.3

1.4

100.4

104.5

17,532 

16,711 

4.9

4.7

 3,369 

 1,856 

 5,225 

(51)

(85)

 3,295 

 1,913 

 5,208 

(122)

(88)

5,089 

4,998 

 1,736 

 1,219 

 2,955 

 (120)

 (86)

 1,771 

 1,268 

 3,039 

 (190)

 (90)

2.3

-3.0

0.3

-58.0

-4.1

1.8

-2.0

-3.9

-2.8

-36.7

-4.3

2,749 

2,759 

-0.4

1.8

-3.1

**

-57.4

-4.1

1.5

-2.3

-4.0

-3.0

-35.7

-4.3

-0.7

Note:
( 1 )     Assuming constant exchange rates for the Australian Dollar and United States Dollar from FY 2017. 

121

Management Discussion and AnalysisGROUP CONSUMER  
Group Consumer contributed 56% 
(FY 2017: 57%) and 66% (FY 2017: 
66%) to the Group’s operating 
revenue and EBITDA respectively. 
Operating revenue and EBITDA grew 
2.7% and 2.3% respectively with 
growth in Australia partly offset by 
decline in Singapore. EBIT declined 
2.0% on higher depreciation and 
amortisation charges on network 
investments, spectrum and new 
billing system.  

In Singapore, operating revenue fell 
2.7% impacted by fierce competition 
in mobile services and continued 
decline in voice services due to data 
substitution. Mobile Communications, 
which contributed 54% of Singapore 
Consumer’s revenue, fell 3.3% on 
declines in both local and roaming 
voice revenues and increased mix 
of SIM-only plans which reduced the 
subscription revenues. The declines 
were partially offset by strong 
growth in mobile data.  Consumer 
Home revenue (comprising fixed 
broadband, Singtel TV and voice) 
was stable as robust growth in fixed 
broadband was offset by the decline 
in TV revenue. With lower operating 
revenue, EBITDA declined 4.5%. 

In Australia, operating revenue grew 
3.9% and increased 5.8% excluding 
the impact of mobile service credits 

from device repayment plans. The 
increase was driven by strong 
customer additions in mobile 
and fixed broadband, increased 
Equipment sales and higher National 
Broadband Network (NBN) migration 
revenues despite the temporary 
suspension in connecting and 
migrating customers to NBN’s HFC 
network. Outgoing mobile service 
revenue rose 1.7% and would be 
up 5.7% excluding the service 
credits. Optus gained mobile market 
share with net addition of 384,000 
customers, underpinned by its 
investments in network and content. 
Mass Market Fixed revenue grew 
9.4% driven by higher NBN revenue 
from net addition of 225,000 
customers for the year. With higher 
operating revenue and increase 
in other income from a dispute 
settlement, EBITDA grew by 4.0%.

GROUP ENTERPRISE
Group Enterprise contributed 38% 
(FY 2017: 39%) and 36% (FY 2017: 
38%) to the Group’s operating 
revenue and EBITDA respectively. 
Operating revenue was stable with 
growth in ICT and Equipment sales 
offsetting the decline in traditional 
carriage services. ICT services was 
boosted by strong contributions 
from cyber security, cloud, and smart 
cities which in total contributed 
approximately S$1.1 billion in revenue, 

an increase of 15% from a year ago. 
EBITDA and EBIT declined 3.0% and 
3.9% respectively due to increased 
mix of lower-margin ICT business 
with investments in new growth 
platforms and pricing pressures in 
traditional services. In April 2018, the 
Group consolidated its cyber security 
operations across Singtel, Trustwave, 
Optus, and NCS into a single global 
unit to strengthen and scale the 
cyber business to accelerate growth.

GROUP DIGITAL LIFE
Group Digital Life has three main 
businesses, namely digital marketing 
(Amobee), regional premium OTT 
video (HOOQ) and advanced 
data analytics and intelligence 
(DataSpark). Operating revenue 
doubled to S$1.08 billion driven 
by first time contribution from Turn 
(acquired in April 2017) and strong 
performance from Amobee’s media 
and social businesses. With higher 
operating revenue, negative EBITDA 
and EBIT were lower by 58% and 
37% respectively. Amobee achieved 
positive EBITDA for the year as it 
leveraged on increased scale and 
synergies with Turn while HOOQ’s 
losses narrowed on higher operating 
revenue. 

122

Singapore Telecommunications Limited  |  Annual Report 2018ASSOCIATES

Financial Year Ended 31 March

2018
(S$ miIlion)

2017
(S$ million)

Change (%)

Group share of associates' pre-tax profits (2)

 2,461 

 2,886 

Share of post-tax profits 
 Telkomsel 
 AIS (2)
 Globe (3)
- ordinary results
- exceptional items 

Intouch (3) (4)
- operating results 
- amortisation of acquired intangibles

 Airtel (3)
- ordinary results (India and South Asia) 
- ordinary results (Africa) 
- exceptional items

BTL (5)

Regional associates (2)

NetLink NBN Trust/ NetLink Trust (6)

Other associates 

 1,031 
 292 

 1,071 
 278 

 180 
 22 
 202 

 106 
 (21)
 86 

 (31)
 145 
 (13)
 101 

 (18)
 83 

 1,694 

72 

57 

 208 
 - 
 208 

 35 
 (7)
 28 

 364 
 (102)
 - 
 262 

 8 
 270 

 1,855 

130 

64 

Group share of associates' post-tax profits (2)

1,823 

2,048 

“nm” denotes not meaningful.

-14.7

-3.7
4.9

-13.5
nm
-2.7

204.0
210.6
202.5

nm
nm
nm
-61.5

nm
-69.1

-8.7

-45.0

-9.8

-11.0

Change in 
constant 
currency  
(%)

(1 )

-13.5

-0.8
0.4

-7.1
nm
4.6

198.1
207.5
195.9

nm
nm
nm
-62.0

nm
-69.5

-7.1

-45.0

-9.8

-9.6

Notes:
( 1 )     Assuming constant exchange rates for the regional currencies (Indian Rupee, Indonesian Rupiah, Philippine Peso and Thai Baht) from FY 2017. 
(2)     The share of AIS’ 3G/4G handset subsidy costs in FY 2017 previously classified as exceptional items of the Group have been reclassified to share of AIS’ ordinary 

results to be consistent with FY 2018. 

(3)     Excluded the Group’s share of the associates’ certain one-off items which have been classified as exceptional items of the Group. 
(4)     Intouch, which Singtel acquired an equity interest of 21% in November 2016, has an equity interest of 40.5% in AIS. 
(5)     Bharti Telecom Limited (BTL) holds 50.1% equity interest in Airtel as at 31 March 2018. In BTL’s standalone books, its results for FY 2018 comprised mainly interest 

charges on debt arising from its acquisition of additional equity interest in Airtel.  

(6)     Singtel ceased to own units in NetLink Trust following the sale to NetLink NBN Trust in July 2017 but continues to have an interest of 24.8% in NetLink NBN Trust, the 
holding company of NetLink Trust. The share of results included Singtel’s amortisation of deferred gain of S$26 million (FY 2017: S$52 million) on assets transferred 
to NetLink Trust in prior years, but excluded fair value adjustments recorded by NetLink NBN Trust in respect of its acquisition of units in NetLink Trust.

Country mobile penetration rate 
Market share, 31 March 2018 (2)
Market share, 31 March 2017 (2)
Market position (2)

Mobile customers ('000) 
- Aggregate 
- Proportionate
Growth in mobile customers (%) (3) 

Telkomsel

154%

47.0%

46.0%

#1

192,752

67,463

13.8%

AIS

136%

44.8%

44.8%

#1

Airtel (1 )

89%

25.6%

23.4%

#1

Globe

116%

52.1%

48.1%

#1

 40,050 

 9,340 

-1.5%

 395,722 

 156,350 

11.3%

 63,263 

 29,816 

8.0%

Notes:
( 1 )     Mobile penetration rate, market share and market position pertained to India market only.
(2)     Based on number of mobile customers.
(3)     Compared against 31 March 2017 and based on aggregate mobile customers. 

123

Management Discussion and AnalysisThe regional associates continued 
to win new customers and capture 
strong data growth, reaping the 
benefits of sustained investments 
in network and spectrum. However, 
with weaker earnings from Airtel 
and Telkomsel and a reduction 
in economic interest in NetLink 
NBN Trust partly offset by higher 
contribution from Intouch, the 
associates’ pre-tax and post-tax 
underlying profit contributions fell 
15% and 11% respectively. 

The Group’s combined mobile 
customer base reached 706 million, 
an increase of 11% or 68 million from 
a year ago.  Telkomsel registered 14% 
increase in its customer base to 193 
million, including 109 million of data 
customers as at end of March 2018. 
Airtel’s total mobile customer base 
covering India, Sri Lanka and across 
Africa, reached 396 million as at 31 
March 2018, an increase of 11% from 
a year ago.

Telkomsel delivered 5% increase 
in revenue with growth in data and 
digital services amid heightened 
price competition. Data and digital 
services revenue rose 29% on 
higher data usage, but traditional 
voice and SMS revenues declined 
with increased popularity of OTT 
applications and higher smartphone 
penetration. EBITDA grew 2% 
despite higher network expenses 
from accelerated deployment of 4G 
network and increased frequency 
fees for 2300 MHz spectrum 
acquired in October 2017. With 
higher depreciation charges from 
network investments and a weaker 
Indonesian Rupiah, Telkomsel’s post-
tax contribution declined 3.7%.   

AIS’ service revenue (excluding 
interconnect and equipment rental) 
grew 5% on increases in data and 
fixed broadband revenues lifted 
by higher usage and improved 4G 
network coverage. EBITDA grew 
11% on the back of service revenue 
growth, lower marketing spend 
with reduced subsidy costs and 
lower regulatory fees on reduction 
in licence fee rate. This was partly 
offset by higher costs from network 
expansion and payments to TOT 
Public Company Limited for the 
lease of 2100 MHz spectrum, towers, 
equipment and facilities. With 
higher depreciation and spectrum 
amortisation charges and a stronger 
Thai Baht, AIS’ post-tax contribution 
rose 4.9%. 

Globe’s service revenue grew 
7% driven by growth in mobile 
data related services as demand 
for internet and data connectivity 
continued to increase. EBITDA rose 
11% despite higher network costs to 
support the growing customer base 
and network expansion. The growth 
was offset by higher depreciation 
charges and finance costs from 
its data network investments. 
Singtel also recorded its share of 
Globe’s one-off gain of S$22 million 
from the increase in fair value of 
its retained equity interest in its 
associate (previously a wholly-owned 
subsidiary). With a weaker Philippine 
Peso, Globe’s post-tax contribution 
declined 2.7%.

Singtel acquired 21% equity interest 
in Intouch ( 1 ) in November 2016. The 
Group’s share of Intouch’s post-
tax profit was S$106 million. After 
including amortisation of acquired 
intangibles of S$21 million, Intouch’s 
post-tax contribution was S$86 
million. 

In India, Airtel’s results were 
adversely impacted by intense 
competition with aggressive 
pricing by a new player and 
further aggravated by mandated 
cuts in mobile termination rates, 
despite recording strong customer 
additions and data usage growth. 
Consequently, Airtel’s revenue 
in India fell 13% led by a drop in 
mobile revenue partly mitigated by 
growth in other segments. EBITDA 
correspondingly declined 22%. In 
Africa, operating revenue was stable 
in constant US Dollar terms and 
would have increased 5% across the 
14 countries if excluding the divested 
operations, led by strong growth 
in data and Airtel Money services. 
EBITDA was up a significant 46% 
with continued strong cost control 
initiatives and efficiency gains, as 
well as improved margins. 

In reported Indian Rupee terms, 
Airtel’s consolidated revenue and 
EBITDA declined 12% and 15% 
respectively. With higher depreciation 
charges from network assets and 
increased spectrum amortisation 
and financing costs in India, Airtel’s 
post-tax contribution declined 62%. 
Including the share of Bharti Telecom 
Limited’s (BTL) net loss of S$18 
million which comprised mainly net 
finance expense, the Group’s share 
of post-tax contribution from Airtel 
and BTL fell 69%.  

In April 2018, Airtel announced the 
merger of Indus Towers and Bharti 
Infratel to create the largest tower 
company in the world outside of 
China, subject to regulatory and 
shareholder approvals.

Note:
( 1 )     Intouch is listed on the Stock Exchange of Thailand and has investments in telecommunications via its 40.5% equity interest in AIS, as well as in satellite, internet, 

and media and advertising businesses.

124

Singapore Telecommunications Limited  |  Annual Report 2018CASH FLOW

Net cash inflow from operating activities 

Net cash outflow for investing activities

Net cash outflow for financing activities

Net change in cash balance 

Exchange effects on cash balance 

Cash balance at beginning of year

Cash balance at end of year

Singtel (1 )

Optus (2)

Associates (net dividends after withholding tax)

Group free cash flow (2)

(exclude ATO tax payment)

Optus (in A$ million) (2)

(exclude ATO tax payment) 

Cash capital expenditure as a percentage of operating revenue

“@” denotes >500% and “nm” denotes not meaningful.

Financial Year Ended 31 March

2018
(S$ miIlion)

2017
(S$ million)

Change (%)

5,955 

(1,951)

(4,009)

(5)

(4)

534 

525 

1,126 

989 

1,492 

3,606 

3,606 

947 

947 

13%

5,315 

(4,832)

(422)

60 

12 

462 

534 

1,040 

514 

1,500 

3,054 

3,197 

500 

634 

14%

12.1

-59.6

@

nm

nm

15.6

-1.7

8.3

92.2

-0.6

18.1

12.8

89.6

49.5

Notes:
( 1 )     Refers to Singtel Group excluding Optus.
(2)     FY 2017 included S$142 million (A$134 million) paid to the Australian Taxation Office (ATO) for amended assessments under dispute relating to the acquisition 

financing of Optus.

The Group’s net cash inflow from 
operating activities for the year grew 
strongly by 12% to S$5.96 billion. 
The increase was mainly driven 
by working capital movements 
and lower tax payments. Dividend 
receipts from associates were stable 
with higher dividends from Telkomsel 
and Airtel as well as first time 
dividend from Intouch offset by lower 
dividends from AIS and the Southern 
Cross consortium. 

The investing cash outflow was 
S$1.95 billion. In July 2017, Singtel 
received net proceeds of S$1.11 
billion from the disposal of units 
in NetLink Trust and S$1.10 billion 
for the repayment of unitholder 
loan. Other investing cash flows 

125

included payments for spectrum 
purchases of S$937 million, and 
equity investments of S$337 million 
for Turn acquired in April 2017 and 
S$539 million for the 1.7% upstake 
in BTL in March 2018. Capital 
expenditure totalled S$2.35 billion, 
comprising S$783 million for Singtel 
and S$1.57 billion (A$1.49 billion) 
for Optus. In Singtel, major capital 
investments in the year included 
S$231 million for fixed and data 
infrastructure, S$178 million for 
mobile networks and S$374 million 
for ICT and other investments. In 
Optus, capital investments in mobile 
networks amounted to A$880 million 
with the balance in fixed and other 
investments. 

The Group’s free cash flow increased 
a robust 18% to S$3.61 billion. The 
increase was driven by working 
capital movements and lower tax 
payments, partly offset by higher 
capital expenditure. 

Net cash outflow for financing 
activities amounted to S$4.01 billion. 
Major cash outflows included net 
decrease in borrowings of S$312 
million, interest payments of S$380 
million, and payments of S$1.75 
billion for final dividends in respect 
of FY 2017, S$1.11 billion for interim 
dividends and S$490 million for 
special dividends in respect of FY 
2018.

Management Discussion and AnalysisSUMMARY STATEMENTS OF FINANCIAL POSITION

Current assets 

Non-current assets 

Total assets 

Current liabilities 

Non-current liabilities 

Total liabilities 

Net assets 

Share capital 

Retained earnings 

Currency translation reserve (1 )

Other reserves 

Equity attributable to shareholders 

Non-controlling interests and other reserve

Total equity

“*” denotes less than S$0.5 million.

As at 31 March  

2018
(S$ miIlion)

 5,981 

 42,273 

2017
(S$ million)

 5,918 

 42,377 

 48,254 

 48,294 

 8,293 

 10,307 

 9,272 

 10,808 

18,600 

20,081 

 29,654 

 28,214 

 4,127 

 31,601 

 (5,773)

 (276)

29,679 

 (26)

 4,127 

 29,494 

 (4,508)

 (900)

28,214 

 * 

29,654 

28,214 

Note:
( 1 )     ‘Currency translation reserve’ relates mainly to the translation of the net assets of foreign subsidiaries, associates and joint ventures of the Group denominated 

mainly in Australian Dollar, Indian Rupee, Indonesian Rupiah, Philippine Peso, Thai Baht and United States Dollar.

The Group is in a strong financial 
position.

Total assets were stable with 
additions from the purchase of 
spectrum, acquisition of Turn and 
upstake of 1.7% equity interest in BTL 
offset by the repayment of unitholder 
loan of S$1.10 billion by NetLink 

Trust. Total liabilities decreased on 
the reduction in borrowings and 
the release of net deferred gains 
of S$1.10 billion on past sales of 
infrastructure assets to NetLink Trust 
following the disposal of an effective 
interest of 75.2% in NetLink Trust in 
July 2017. 

Currency translation losses increased 
mainly from the translation of the 
Group’s investments in Optus, 
Telkomsel and Airtel due to the 
weaker Australian Dollar, Indonesian 
Rupiah and Indian Rupee against the 
Singapore Dollar from a year ago.

126

Singapore Telecommunications Limited  |  Annual Report 2018CAPITAL MANAGEMENT AND DIVIDEND POLICY

Group

Gross debt (S$ million)

Net debt (1 ) (S$ million)

Net debt gearing ratio (2) (%)

Net debt to EBITDA and share of associates’ pre-tax profits (number of times) (3)

Interest cover (3) (4) (number of times)

As at 31 March 2018, the Group’s net 
debt was S$9.8 billion, 5% lower than 
a year ago.

to maintaining an optimal capital 
structure and investment credit grade 
ratings. 

The Group has one of the 
strongest credit ratings among 
telecommunication companies in 
the Asia Pacific region. Singtel is 
currently rated A1 by Moody’s and A+ 
by S&P Global Ratings. The Group 
continues to maintain a healthy 
capital structure.

Singtel is committed to delivering 
dividends that increase over time 
with growth in underlying earnings. 
Its dividend payout ratio is between 
60% and 75% of underlying net 
profit. The Group is also committed 

For the financial year ended 31 
March 2018, total ordinary dividend, 
including the proposed final 
dividend, was 17.5 cents per share, 
representing 81% of the Group's 
underlying net profit. Including a 
special dividend of 3.0 cents, total 
dividend per share for the financial 
year was 20.5 cents. 

While continuing competition in 
India may impact Airtel’s profit 
contribution to the Group in the short 
term, the impact on the Group’s cash 
flow and hence dividend payment 

OUTLOOK FOR THE FINANCIAL 
YEAR ENDING 31 MARCH 2019 
For the Group’s outlook for the 
financial year ending 31 March 
2019, please refer to pages 8 to 

10 of the Management Discussion 
and Analysis for the fourth quarter 
and year ended 31 March 2018 
announced on 17 May 2018.

Financial Year Ended 31 March

2018

2017

10,345

9,820

24.9

1.3

20.2

10,918

10,384

26.9

1.3

23.4

is not expected to be significant. 
Barring unforeseen circumstances, 
the Group expects to maintain its 
ordinary dividends at 17.5 cents per 
share for the next two financial years 
and thereafter revert to the payout 
ratio of between 60% to 75% of its 
underlying net profit.

Notes:
( 1 )     Net debt is defined as gross debt less cash and 
bank balances adjusted for related hedging 
balances.

(2)     Net debt gearing ratio is defined as the ratio of 
net debt to net capitalisation. Net capitalisation 
is the aggregate of net debt, shareholders’ 
funds and non-controlling interests.

(3)     FY 2017 has been restated to reclassify AIS’ 

3G/4G handset subsidy costs from exceptional 
items of the Group to share of associates’ profits 
to be consistent with FY 2018.

(4)     Interest cover refers to the ratio of EBITDA 

and share of associates’ pre-tax profits to net 
interest expense.

127

Management Discussion and AnalysisDirectors’ Statement

Independent Auditor’s Report

Consolidated Income Statement

129

139

145

Consolidated Statement of Comprehensive Income 146

Statements of Financial Position

Statements of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Financial Statements

147

148

152

155

128

Singapore Telecommunications Limited  |   Annual Report 2018Financial StatementsThe  Directors  present  their  statement  to  the  members  together  with  the  audited  financial  statements  of  the  Company 
(“Singtel”) and its subsidiaries (the “Group”) for the financial year ended 31 March 2018.

In the opinion of the Directors,

(a) 

the consolidated financial statements of the Group and the statement of financial position and statement of changes 
in equity of the Company as set out on pages 145 to 249 are drawn up so as to give a true and fair view of the 
financial position of the Group and of the Company as at 31 March 2018, and the financial performance, changes 
in equity and cash flows of the Group and changes in equity of the Company for the financial year ended on that 
date; and

(b) 

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

1. 

DIRECTORS 

The Directors of the Company in office at the date of this statement are -

Simon Claude Israel (Chairman) 
Chua Sock Koong (Group Chief Executive Officer) 
Gautam Banerjee (appointed on 1 March 2018)
Bobby Chin Yoke Choong 
Venkataraman Vishnampet Ganesan
Christina Hon Kwee Fong (Christina Ong)
Low Check Kian 
Peter Edward Mason AM (1) 
Peter Ong Boon Kwee
Teo Swee Lian 

Note:
(1)  Member of the Order of Australia 

2. 

ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE BENEFITS BY MEANS OF THE ACQUISITION OF 
SHARES AND DEBENTURES

Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose 
object is to enable the Directors of the Company to acquire benefits by means of the acquisition of shares in, or 
debentures of, the Company or any other body corporate, except for performance shares granted under the Singtel 
Performance Share Plan 2012 (the “Singtel PSP 2012”) and share options granted by Amobee Group Pte. Ltd. 
(“Amobee”).

129

Directors’ StatementFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
3. 

DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES 

The interests of the Directors holding office at the end of the financial year in the share capital of the Company and 
related corporations according to the register of Directors’ shareholdings kept by the Company under Section 164 
of the Singapore Companies Act were as follows –

The Company

Singapore Telecommunications Limited

(Ordinary shares)

Simon Claude Israel 

Chua Sock Koong 

Gautam Banerjee

Bobby Chin Yoke Choong

Low Check Kian

Peter Edward Mason AM

Christina Ong

Peter Ong Boon Kwee

Teo Swee Lian

Holdings registered in the name of 
Director or nominee

Holdings in which Director is 
deemed to have an interest

At 31 March 2018

At 1 April 2017       

or date of
appointment, 
if later

At 31 March 2018

At 1 April 2017 
or date of 
appointment,
if later

919,961 (1)
7,540,668 (3)

836,275

7,034,926

1,360 (2)
4,852,449 (4)

1,360 

5,156,191 

-

- 

-

- 

1,490
   50,000            (5)

1,490

     50,000            

-

870

1,550

-

870

1,550

(American Depositary Shares)

Venkataraman Vishnampet Ganesan 

3,341.45 (6)

3,341.45

Subsidiary Corporations

Amobee Group Pte. Ltd.

(Options to subscribe for ordinary shares)

Venkataraman Vishnampet Ganesan

750,718

750,718

Optus Finance Pty Limited

(A$250,000,000 4% fixed rate notes due 2022)

Simon Claude Israel 

A$1,600,000
(principal amount)

(7) A$1,600,000
(principal amount)

-

-

-

-

-

-

-

-

-

-

1,537 (2)

1,537

-

-

-

-

-

-

-

-

130

Singapore Telecommunications Limited  |   Annual Report 2018Directors’ StatementFor the financial year ended 31 March 2018 
3. 

DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES (Cont’d)

Holdings registered in the name of 
Director or nominee

Holdings in which Director is 
deemed to have an interest

At 31 March 2018

At 1 April 2017       
or date of 
appointment, 
if later

At 31 March 2018

At 1 April 2017 
or date of 
appointment,
if later

Related Corporations

Ascendas Funds Management (S) Limited
(Unit holdings in Ascendas Real Estate 
  Investment Trust)
Simon Claude Israel
Chua Sock Koong
Gautam Banerjee

Ascendas Property Fund Trustee Pte. Ltd.
(Unit holdings in Ascendas India Trust)
Gautam Banerjee

1,000,000 (8)
142,000
20,000

1,000,000 
      142,000
20,000

120,000

     120,000

-
-
-

-

-
-
-

-

Mapletree Commercial Trust Management Ltd. 
(Unit holdings in Mapletree Commercial Trust)
Simon Claude Israel
Bobby Chin Yoke Choong

4,043,520 (7)

-

4,043,520
-

 -                      
117,000 (2)

-
117,000

Mapletree Greater China Commercial Trust 
  Management Ltd.
(Unit holdings in Mapletree Greater China 
  Commercial Trust)
Simon Claude Israel
Chua Sock Koong
Peter Ong Boon Kwee

Mapletree Industrial Trust Management Ltd.
(Unit holdings in Mapletree Industrial Trust)
Simon Claude Israel
Chua Sock Koong
Bobby Chin Yoke Choong

Mapletree Logistics Trust Management Ltd.
(Unit holdings in Mapletree Logistics Trust)
Simon Claude Israel

Mapletree Treasury Services Limited
(S$625,500,000 4.5% perpetual capital 
  securities)
Simon Claude Israel                                  

1,000,000 (7)
430,000
-

1,000,000 
430,000
-

-

50,000 (2)
32,000 (2)

-
50,000
32,000

990,160 (7)
11,000
129,600

990,160
11,000
129,600

1,100,000 (7)

1,000,000

 S$500,000 
(principal amount)

 S$500,000
(principal amount)

 -  
-
-

-

-

-
-
-

-

- 

131

Directors’ StatementFor the financial year ended 31 March 20183. 

DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES (Cont’d)

Holdings registered in the name of 
Director or nominee

Holdings in which Director is 
deemed to have an interest

At 31 March 2018

At 1 April 2017       

or date of
appointment, 
if later

At 31 March 2018

At 1 April 2017 
or date of 
appointment,
if later

Olam International Limited

(Ordinary shares)

Low Check Kian

Singapore Airlines Limited

(Ordinary shares)

Simon Claude Israel

Chua Sock Koong

Bobby Chin Yoke Choong

Low Check Kian 

500,000

-

2,074,518 (9)

9,000 (10)

2,000

-

5,600

9,000

2,000

-

77,550

-

-

-

-

-

2,000 (2)

2,000

-

-

-

-

Singapore Technologies Engineering Limited

(Ordinary shares)

Christina Ong  

1

1

Notes:
(1) 

915,550 ordinary shares held in the name of Citibank Nominees Singapore Pte Ltd and 4,411 ordinary shares held in the name of DBS 
Nominees (Private) Limited.
Held by Director’s spouse.
688,750 ordinary shares held in the name of DBS Nominees (Private) Limited.

(2) 
(3) 
(4)  Ms Chua Sock Koong’s deemed interest of 4,852,449 shares included:

(a)  28,137 ordinary shares held by Ms Chua’s spouse; and
(b)  An aggregate of up to 4,824,312 ordinary shares in Singtel awarded to Ms Chua pursuant to the Singtel PSP 2012, subject to certain 
performance criteria being met and other terms and conditions. Depending on the extent of the satisfaction of the relevant minimum 
performance criteria, up to an aggregate of 7,209,150 ordinary shares may be released pursuant to the conditional awards granted.
According to the Register of Directors’ Shareholdings, Ms Chua had a deemed interest in 10,836,742 shares held by DBS Trustee Limited, 
the trustee of a trust established for the purposes of the Singtel Performance Share Plan and the Singtel PSP 2012 for the benefit of eligible 
employees of the Group, as at 19 November 2012, being the date on which the Securities and Futures (Disclosure of Interests) Regulations 
2012  (the  “SFA  (DOI)  Regulations”)  came  into  operation.  Under  regulation  6  of  the  SFA  (DOI)  Regulations,  Ms  Chua  is  exempted  from 
reporting interests, and changes in interests, in shares held by the trust, with effect from 19 November 2012.
Held (through custodians) by Burgoyne Investments Pty Ltd as trustee for Burgoyne Superannuation Fund. Both Mr Peter Edward Mason 
AM and spouse are directors of Burgoyne Investments Pty Ltd and beneficiaries of Burgoyne Superannuation Fund.
1 American Depositary Share represents 10 ordinary shares in Singtel.
Held in the name of Citibank Nominees Singapore Pte Ltd.  

(6)  
(7) 
(8)      100,000 units held jointly by Mr Israel and his spouse, and 900,000 units held in the name of Citibank Nominees Singapore Pte Ltd.
(9) 
(10) 

Held by Cluny Capital Limited. Mr Low Check Kian is the sole shareholder of Cluny Capital Limited.
6,200  ordinary  shares  held  in  the  name  of  Citibank  Nominees  Singapore  Pte  Ltd  and  2,800  ordinary  shares  held  in  the  name  of  DBS 
Nominees (Private) Limited.

(5) 

According to the register of Directors’ shareholdings, there were no changes to any of the above-mentioned interests 
between the end of the financial year and 21 April 2018.

132

Singapore Telecommunications Limited  |   Annual Report 2018Directors’ StatementFor the financial year ended 31 March 2018 
4. 

PERFORMANCE SHARES

The Executive Resource and Compensation Committee (“ERCC”) is responsible for administering the Singtel PSP 
2012.    At  the  date  of  this  statement,  the  members  of  the  ERCC  are  Peter  Edward  Mason  AM  (Chairman  of  the 
ERCC), Simon Claude Israel and Teo Swee Lian. 

At the Extraordinary General Meeting held on 27 July 2012, the shareholders approved the adoption of the Singtel 
PSP 2012. The duration of the Singtel PSP 2012 is 10 years commencing 27 July 2012. This plan gives the flexibility 
to either allot and issue and deliver new Singtel shares or purchase and deliver existing Singtel shares upon the 
vesting of awards.

The  participants  of  the  Singtel  PSP  2012  will  receive  fully  paid  Singtel  shares  free  of  charge,  the  equivalent  in 
cash, or combinations thereof, provided that certain prescribed performance targets are met within a prescribed 
performance period.  The performance period for the awards granted is three years, except for Restricted Share 
Awards  which  have  a  performance  period  of  two  years.  The  number  of  Singtel  shares  that  will  vest  for  each 
participant or category of participants will be determined at the end of the performance period based on the level 
of attainment of the performance targets.

Awards comprising an aggregate of 70.6 million shares have been granted under the Singtel PSP 2012 from its 
commencement to 31 March 2018. 

Performance share awards granted, vested and cancelled during the financial year, and share awards outstanding 
at the end of the financial year, were as follows –

Date of grant

Share award for Chairman

(Simon Claude Israel)

16.08.17

Performance shares

(Restricted Share Awards)

For Group Chief Executive Officer 

(Chua Sock Koong)

23.06.14

17.06.15

20.06.16

19.06.17

Balance 
as at 
1 April 2017
(’000)

Share 
awards
granted
(’000)

Additional 
share awards 
 from targets 
exceeded
(’000)

Share
awards 
vested 
(’000)

Share 
awards
cancelled
(’000)

Balance 
as at 
31 March 2018
(’000)

-

84                  -

(84)   

66

84

201

-

351

-

-

-

383

383

-

26

-

-

26

(66)

(55)

-

-

(121)

-

-

-

-

-

-

     -

-

55

201

383

639

133

Directors’ StatementFor the financial year ended 31 March 20184. 

PERFORMANCE SHARES (Cont’d)

Date of grant

For other staff

23.06.14

17.09.14

23.12.14

17.06.15

28.09.15

05.01.16

20.06.16

20.03.17

19.06.17

21.09.17

18.12.17

14.03.18

Balance 
as at 
1 April 2017
(’000)

Share 
awards
granted
(’000)

Additional 
share awards 
 from targets 
exceeded
(’000)

Share
awards 
vested 
(’000)

Share 
awards
cancelled
(’000)

Balance 
as at 
31 March 2018
(’000)

2,641

7

2

3,595

23

7

5,118

87

-

-

-

-

11,480

-

-

-

-

-

-

-

-

7,318

87

77

150

7,632

-

-

-

(2,624)

(7)

(2)

(17)

-

-

-

-

-

1,068

(2,351)

(180)

2,132

7

3

1

-

-

-

-

-

(15)

(5)

(67)

(67)

(15)

-

-

-

-

-

(342)

-

(393)

-

-

-

15

5

4,710

20

6,910

87

77

150

1,079

(5,153)

(932)

14,106

Sub-total

11,831

8,015

1,105

(5,274)

(932)

14,745

Performance shares

(Performance Share Awards)

For Group Chief Executive Officer 

(Chua Sock Koong)

23.06.14

17.06.15

20.06.16

19.06.17

1,423

1,659

1,695

-

4,777

-

-

-

832

832

-

-

-

-

-

(235)

(1,188)

-

-

-

-

-

-

(235)

(1,188)

-

1,659

1,695

832

4,186

134

Singapore Telecommunications Limited  |   Annual Report 2018Directors’ StatementFor the financial year ended 31 March 20184. 

PERFORMANCE SHARES (Cont’d)

Date of grant

For other staff

23.06.14

17.09.14

23.12.14

17.06.15

28.09.15

05.01.16

20.06.16

20.03.17

19.06.17

21.09.17

18.12.17

14.03.18

Sub-total

Total

Balance 
as at 
1 April 2017
(’000)

Share 
awards
granted
(’000)

Additional 
share awards 
 from targets 
exceeded
(’000)

Share
awards 
vested 
(’000)

Share 
awards
cancelled
(’000)

Balance 
as at 
31 March 2018
(’000)

6,524

15

6

7,317

125

32

7,373

91

-

-

-

-

-

-

-

-

-

-

-

-

3,972

24

53

79

21,483

4,128

26,260

4,960

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(1,050)

(5,474)

(2)

(1)

-

-

-

-

-

-

-

-

-

(13)

(5)

(447)

-

-

(417)

-

(75)

-

-

-

-

-

-

6,870

125

32

6,956

91

3,897

24

53

79

(1,053)

(6,431)

18,127

(1,288)

(7,619)

22,313

38,091

13,059

1,105

(6,646)

(8,551)

37,058

During the financial year, awards in respect of an aggregate of 6.6 million shares granted under the Singtel PSP 
2012 were vested. The awards were satisfied in part by the delivery of existing shares purchased from the market 
and in part by the payment of cash in lieu of delivery of shares, as permitted under the Singtel PSP 2012.

As  at  31  March  2018,  no  participant  has  received  shares  pursuant  to  the  vesting  of  awards  granted  under  the 
Singtel PSP 2012 which, in aggregate, represents five per cent or more of the aggregate of -

(i) 

the total number of new shares available under the Singtel PSP 2012; and

(ii) 

the total number of existing shares purchased for delivery of awards released under the Singtel PSP 2012.

135

Directors’ StatementFor the financial year ended 31 March 2018 
 
5. 

SHARE OPTION PLANS 

During the financial year, there were:

(a) 

no options granted by the Company to any person to take up unissued shares of the Company; and

(b) 

no shares issued by virtue of any exercise of options to take up unissued shares of the Company. 

There were no unissued shares of the Company under option at the end of the financial year.

The particulars of the share option plans of subsidiary corporations of the Company are as follows:

Amobee Group Pte. Ltd. 

In April 2015, Amobee, a wholly-owned subsidiary corporation of the Company, implemented the 2015 Long-Term 
Incentive Plan (“Amobee LTI Plan”). Under the terms of Amobee LTI Plan, options to purchase ordinary shares of 
Amobee may be granted to employees (including executive directors) and non-executive directors of Amobee and/
or any of its subsidiaries. 

Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of Amobee on the date 
of grant. 

From 1 April 2017 to 31 March 2018, options in respect of an aggregate of 43.8 million of ordinary shares in Amobee 
have been granted to the employees and non-executive directors of Amobee and/or its subsidiaries. As at 31 March 
2018, options in respect of an aggregate of 63.1 million of ordinary shares in Amobee are outstanding.

The grant dates and exercise prices of the share options were as follows – 

Date of grant 

For employees
13 April 2015, 14 October 2015 
20 January 2016, 10 May 2016, 23 June 2016, 24 August 2016, 25 January 2017,  
19 July 2017, 18 August 2017, 12 September 2017, 25 January 2018 

For non-executive directors 
14 October 2015 

Exercise price

US$0.54 to US$0.79

US$0.54

US$0.54

The options granted to employees and non-executive directors expire 10 years and 5 years from the date of grant 
respectively. 

No ordinary shares of Amobee were issued during the financial year pursuant to the exercise of options granted 
under the Amobee LTI Plan. The persons to whom the options have been granted do not have the right to participate, 
by virtue of the options, in any share issue of any other company.

Trustwave Holdings, Inc.  

In December 2015, Trustwave Holdings, Inc. (“Trustwave”), a 98%-owned subsidiary corporation of the Company, 
implemented  the  Stock  Option  Incentive  Plan  (“Trustwave  ESOP’’).  Under  the  terms  of  the  Trustwave  ESOP, 
options to purchase common stock of Trustwave may be granted to employees (including executive directors) and 
non-executive directors of Trustwave and/or any of its subsidiaries. 

Options are exercisable at a price no less than 100% of the fair value of the common stock of Trustwave on the 
date of grant. 

136

Singapore Telecommunications Limited  |   Annual Report 2018Directors’ StatementFor the financial year ended 31 March 2018 
5. 

SHARE OPTION PLANS (Cont’d)

From 1 April 2017 to 31 March 2018, options in respect of an aggregate of 0.4 million of common stock in Trustwave 
have been granted to the employees of Trustwave and/or its subsidiaries. As at 31 March 2018, options in respect 
of an aggregate of 2.4 million of common stock in Trustwave are outstanding.

The grant dates and exercise prices of the stock options were as follows – 

Date of grant 

1 December 2015, 22 January 2016, 19 May 2016, 12 September 2016 
20 January 2017 
15 March 2018 

The options granted expire 10 years from the date of grant. 

Exercise price  

US$16.79 
US$16.24 
US$15.37 

No common stock of Trustwave was issued during the financial year pursuant to the exercise of options granted 
under the Trustwave ESOP. The persons to whom the options have been granted do not have the right to participate, 
by virtue of the options, in any share issue of any other company.

HOOQ

In  December  2015,  HOOQ  Digital  Pte.  Ltd.  (“HOOQ”),  a  65%-owned  subsidiary  corporation  of  the  Company, 
implemented the HOOQ Digital Employee Share Option Scheme (“the Scheme’’). Under the terms of the Scheme, 
options  to  purchase  ordinary  shares  of  HOOQ  may  be  granted  to  employees  (including  executive  directors)  of 
HOOQ and/or any of its subsidiaries. 

Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of HOOQ on the date 
of grant. 

From 1 April 2017 to 31 March 2018, options in respect of an aggregate of 14.0 million of ordinary shares in HOOQ 
have been granted to the employees of HOOQ and/or its subsidiaries. As at 31 March 2018, options in respect of 
an aggregate of 42.8 million of ordinary shares in HOOQ are outstanding.

The grant dates and exercise prices of the stock options were as follows – 

Date of grant 

16 May 2016, 24 April 2017, 2 May 2017, 31 July 2017, 8 September 2017, 
23 October 2017, 10 January 2018 

The options granted expire 10 years from the date of grant. 

Exercise price  

US$0.07 

No ordinary shares of HOOQ were issued during the financial year pursuant to the exercise of options granted under 
the Scheme. The persons to whom the options have been granted do not have the right to participate, by virtue of 
the options, in any share issue of any other company.

137

Directors’ StatementFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6. 

AUDIT COMMITTEE 

At the date of this statement, the Audit Committee comprises the following members, all of whom are non-executive 
and the majority of whom, including the Chairman, are independent -

Bobby Chin Yoke Choong (Chairman of the Audit Committee)
Gautam Banerjee (appointed on 1 March 2018)
Christina Hon Kwee Fong (Christina Ong)
Peter Ong Boon Kwee

Teo Swee Lian, who served during the financial year, stepped down as a member of the Audit Committee on 1 
March 2018.

The Audit Committee carried out its functions in accordance with Section 201B of the Singapore Companies Act, 
Chapter 50. 

In  performing  its  functions,  the  Committee  reviewed  the  overall  scope  and  results  of  both  internal  and  external 
audits  and  the  assistance  given  by  the  Company’s  officers  to  the  auditors.  It  met  with  the  Company’s  internal 
auditors  to  discuss  the  results  of  the  respective  examinations  and  their  evaluation  of  the  Company’s  system  of 
internal accounting controls. The Committee also held discussions with the internal and external auditors and is 
satisfied that the processes put in place by management provide reasonable assurance on mitigation of fraud risk 
exposure to the Group.

The Committee also reviewed the financial statements of the Company and the Group, as well as the Independent 
Auditor’s Report thereon.  In the review of the financial statements of the Company and the Group, the Committee 
had  discussed  with  management  the  accounting  principles that  were  applied  and  their  judgement  of  items  that 
might affect the integrity of the financial statements.  

In addition, the Committee had, with the assistance of the internal auditors, reviewed the procedures set up by the 
Company and the Group to identify and report, and where necessary, sought appropriate approval for interested 
person transactions.

The  Committee  has  full  access  to  and  has  the  co-operation  of  management  and  has  been  given  the  resources 
required for it to discharge its function properly. It also has full discretion to invite any executive officer to attend its 
meetings. The external and internal auditors have unrestricted access to the Audit Committee.

The Committee has made its recommendations to the Board of Directors and the Board of Directors is satisfied with 
the proposed appointment of KPMG LLP as external auditor of the Company in place of the retiring auditor, Deloitte 
& Touche LLP, at the forthcoming 2018 Annual General Meeting. 

7. 

AUDITOR 

The retiring auditor, Deloitte & Touche LLP, will not be seeking re-appointment at the forthcoming Annual General 
Meeting. KPMG LLP has expressed its willingness to accept appointment as auditor.                                                               

On behalf of the Directors

Simon Claude Israel 
Chairman   

Singapore
16 May 2018

Chua Sock Koong
Director

138

Singapore Telecommunications Limited  |   Annual Report 2018Directors’ StatementFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Singapore Telecommunications Limited (the “Company”) and its subsidiaries 
(the “Group”) which comprise the consolidated statement of financial position of the Group and the statement of financial 
position  of  the  Company  as  at  31  March  2018,  and  the  consolidated  income  statement,  statement  of  comprehensive 
income, statement of changes in equity and statement of cash flows of the Group and the statement of changes in equity 
of the Company for the year then ended, and the notes to the financial statements, including a summary of significant 
accounting policies, as set out on pages 145 to 249.

In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial position 
and  statement  of  changes  in  equity  of  the  Company  are  properly  drawn  up  in  accordance  with  the  provisions  of  the 
Companies Act, Chapter 50 (the “Act”) and Financial Reporting Standards in Singapore (“FRSs”) so as to give a true and 
fair view of the consolidated financial position of the Group and the financial position of the Company as at 31 March 2018, 
and of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group 
and changes in equity of the Company for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those 
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our 
report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) 
Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with 
the  ethical  requirements  that  are  relevant  to  our  audit  of  the  financial  statements  in  Singapore,  and  we  have  fulfilled 
our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit 
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the 
financial statements of the current year. These matters were addressed in the context of our audit of the financial statements 
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matters

Revenue recognition

Our audit performed and responses thereon 

We have identified three critical areas in relation to revenue 
set out below that we consider significant either because 
of  the  complexity  of  the  operation  of  billing  systems  or 
because of the required exercise of judgement:
• 

accounting for long-term contracts, particularly with 
respect  to  Group  Enterprise  Infocomm  Technology 
(“ICT”) projects;
accounting for new products and tariffs introduced 
in the year; and
the timing of revenue recognition.

• 

• 

The accounting policies for revenue recognition are set out 
in Note 2.20 to the financial statements and the different 
revenue  streams  for  the  Group  have  been  disclosed  in 
Note 4 to the financial statements.

• 

139

Our  audit  approach  included  both  controls  testing  and 
substantive procedures as follows:
• 

We  performed  procedures  to  identify  contracts 
which may exhibit areas of audit interest such as low 
and/or  significant  change  in  margins,  loss-making 
contracts, and accounts with high accrued revenue 
amongst  others.  We  challenged  the  assumptions 
and judgements underpinning forecast performance 
of  the  identified  contracts  and  the  adequacy  of 
contract loss provisions.
We  evaluated  the  relevant  IT  systems  and  the 
design and operating effectiveness of controls over 
the  capture  and  recording  of  revenue  transactions 
by involving our IT specialists to assist in the audit 
of  automated  controls,  including  interface  controls 
between different IT applications.

Independent Auditor’s ReportTo the Members of Singapore Telecommunications LimitedFor the financial year ended 31 March 2018Key Audit Matters

Our audit performed and responses thereon 

Revenue recognition (Cont’d)

Taxation

The  Group’s  subsidiaries,  associates  and  joint  ventures 
have operations across a large number of jurisdictions and 
are subject to periodic challenges by local tax authorities.  

As  discussed  in  Note  38(b)  to  the  financial  statements, 
the  Group  has  been  responding  to  an  ongoing  specific 
issue  audit  by  the  Australian  Taxation  Office  (“ATO”)  in 
connection with the acquisition financing of Singtel Optus 
Pty Limited (“Optus”).

The  Group  has  engaged  external  specialists  to  advise 
management on this specific issue audit, including raising 
objections to the amended assessments.  Evaluation of the 
outcome of the specific issue audit, and whether the risk 
of loss is remote, possible or probable, requires significant 
judgement given the complexities involved. 

• 

• 

• 

• 

We  evaluated  the  business  process  controls  in 
place  over  the  authorisation  of  rate  changes,  the 
introduction  of  new  plans  and  the  input  of  this 
information to billing systems. We tested the access 
controls  and  change  management  controls  for  the 
Group’s billing systems.
We tested samples of customer bills for accuracy for 
new products and tariffs introduced in the year.
We tested key reconciliations used by management 
to  assess  the  completeness  and  accuracy  of 
revenue,  including  testing  the  period  in  which  it  is 
reported.
We  tested  supporting  evidence  for  manual  journal 
entries  posted  to  revenue  accounts  to  identify  any 
unusual items.

We have validated and are satisfied with the assumptions 
and key management estimates adopted where revenue is 
recognised on a percentage of completion basis.

We have not noted any significant deficiency in the relevant 
IT systems and business process controls of the relevant 
revenue streams. 

No  exceptions  were  noted  in  the  key  reconciliations  and 
manual journal entries relating to revenue recorded in the 
year.

We  have  involved  our  tax  specialists  in  assessing  the 
judgements  taken  by  management  in  reaching  their 
conclusion  that  the  specific  issue  audit  by  the  ATO 
represents a contingent liability of the Group and that the 
amount paid continues to represent a receivable as at 31 
March 2018.  

We  have  examined  the  advice  obtained  by  management 
from the Group’s tax specialists to support the judgement 
taken, and have discussed the merits of the case. 

Based  on  our  procedures,  we  believe  that  the  position 
taken by the Group is appropriate.

We  have  also  assessed  and  validated  the  adequacy  and 
appropriateness  of  the  disclosures  made  in  the  financial 
statements,  in  accordance  with  FRS  37  Provisions, 
Contingent Liabilities and Contingent Assets.

140

Singapore Telecommunications Limited  |   Annual Report 2018Independent Auditor’s ReportTo the Members of Singapore Telecommunications LimitedFor the financial year ended 31 March 2018Key Audit Matters

Our audit performed and responses thereon 

Goodwill impairment review

Optus, Amobee, Inc. and Trustwave
Under FRSs, the Group is required to annually test goodwill 
for  impairment.  This  assessment  requires  the  exercise 
of  significant  judgement  about  future  market  conditions, 
including growth rates and discount rates, as well as the 
cash  generating  unit  (“CGU”)  on  which  the  goodwill  is 
tested for impairment. 

As  at  31  March  2018,  the  goodwill  recorded  on  Optus, 
Amobee, Inc. and Trustwave Holdings, Inc. (“Trustwave”) 
amounted to S$9.28 billion, S$1.01 billion and S$999 million 
respectively, cumulatively constituting approximately 23% 
of the Group’s total assets.

As  disclosed  in  Note  23  to  the  financial  statements,  the 
goodwill  recorded  on  Amobee,  Inc.  of  S$1.01  billion 
includes  goodwill  of  S$327  million  resulting  from  the 
finalisation  of  the  purchase  price  allocation  work  on  the 
acquisition of Turn, Inc. during the year.

Subsequent to the restructuring and reorganisation of the 
Group’s cyber security business during the financial year, 
which became effective from 1 April 2018, management has 
assessed and considered that the combined cyber security 
businesses  of  the  Group,  which  includes  Trustwave,  are 
considered  as  one  CGU  to  support  the  carrying  value  of 
goodwill amounting to S$999 million.

The  key  assumptions  to  the  impairment  test  and  the 
sensitivity  of  changes  in  these  assumptions  to  the  risk 
of  impairment  are  disclosed  in  Note  23  to  the  financial 
statements.

Bharti Airtel
Bharti  Airtel  Limited  (“Airtel”),  a  joint  venture  of  the 
Group,  has  recorded  significant  goodwill  arising  from 
the acquisition of Airtel Africa in June 2010, of which the 
Group’s share is considered material. 

This  goodwill  recorded  by  Airtel  is  required  to  be  tested 
for impairment at least annually. As the amount of goodwill 
recorded is material, an impairment thereof may materially 
affect the Group’s share of the joint venture’s results. The 
impairment assessment requires the exercise of significant 
judgement  about  future  market  conditions,  including 
growth  rates  and  discount  rates  applicable  in  a  number 
of  markets  in  Africa.  The  Group’s  carrying  value  in  Airtel 
(which includes the goodwill) is disclosed in Note 22 to the 
financial statements.

141

Optus, Amobee, Inc. and Trustwave
Our audit procedures focused on evaluating and challenging 
the key assumptions used by management in conducting 
the impairment review. These procedures included:
• 

challenging the appropriateness of the CGU to which 
goodwill is allocated and tested for impairment, and 
that  the  change  in  CGU  for  Trustwave  to  be  the 
combined cyber security business is in accordance 
with  the  requirements  in  FRS  36  Impairment  of 
Assets;
using  our  valuation  specialists  to  independently 
develop  expectations  for  the  key  macro-economic 
assumptions  used 
impairment  analysis 
in  the 
and  purchase  price  allocation  work,  in  particular 
the  discount  rate  and  long-term  growth  rate,  and 
comparing the independent expectations with those 
used by management;
challenging the cash flow forecasts used, comparing 
with recent performance, trend analysis and market 
expectations; and
by reference to prior years’ forecasts, where relevant, 
assessing whether the Group has achieved them.

• 

• 

• 

Based  on  our  procedures,  we  noted  management’s 
key  assumptions  to  be  within  a  reasonable  range  of  our 
expectations. 

We  have  also  assessed  and  validated  the  adequacy  and 
appropriateness  of  the  disclosures  made  in  the  financial 
statements.

Bharti Airtel
Our  audit  procedures  included  the  review  of  relevant 
working papers of the auditors of Airtel (the “Bharti Airtel 
Auditors”),  with  particular  focus  on  those  related  to  the 
goodwill impairment review. We also discussed with Airtel 
management,  Bharti  Airtel  Auditors  and  specialists  used 
by  them,  including  those  engaged  to  assist  the  Bharti 
Airtel  Auditors  in  assessing  the  assumptions  adopted 
in  the  goodwill  impairment  model  prepared  by  Airtel 
management.

The  Group’s  share  of  Airtel’s  results  is  calculated  based 
on Airtel’s audited financial statements on which the Bharti 
Airtel Auditors have expressed an unmodified opinion.

Independent Auditor’s ReportTo the Members of Singapore Telecommunications LimitedFor the financial year ended 31 March 2018Key Audit Matters

Our audit performed and responses thereon 

Contingent liabilities: Share of significant joint ventures’ 
and associate’s reported regulatory and tax disputes

The Group’s significant joint ventures and associate have 
operations  across  a  number  of  jurisdictions  including 
Africa, India, Indonesia, the Philippines and Thailand, and 
are subject to periodic challenges by local regulators and 
tax authorities.

Management  of  these  significant  joint  ventures  and 
associate  have  engaged  specialists  to  advise  them  on 
such  disputes,  and  to  assess  whether  the  risk  of  loss  is 
remote,  possible  or  probable.  Such  assessment  requires 
significant judgement given the complexities involved. The 
joint  ventures’  and  associate’s  contingent  liabilities  have 
been disclosed in Note 39 to the financial statements.

Our  audit  procedures  included  the  review  of  relevant 
working  papers  of  the  auditors  of  the  significant  joint 
ventures  and  associate  (the  “Component  Auditors”), 
with  particular  focus  on  those  related  to  regulatory  and 
tax  disputes.  We  have  also  discussed  with  management 
of  these  significant  joint  ventures  and  associate,  and 
their  respective  Component  Auditors,  including  those 
engaged  to  assist  the  Component  Auditors  in  evaluating 
the contingent liabilities.

We  have  also  reviewed  legal  advice  received  by  the 
Component  Auditors  for  certain  of  the  key  contingent 
liabilities  that  are  significant  to  the  Group  and  assessed 
the  adequacy  of  disclosure  of  the  contingent  liabilities 
in  the  financial  statements,  in  accordance  with  FRS  37 
Provisions, Contingent Liabilities and Contingent Assets.

Information Other than the Financial Statements and Auditor’s Report Thereon

Management is responsible for the other information. The other information comprises all the information included in the 
Annual Report, excluding the Financial Statements and our auditor’s report thereon. The other information is expected to 
be made available to us after the date of our auditor’s report on the Financial Statements.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance 
conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above 
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the 
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. 

When  we  read  the  other  information,  if  we  conclude  that  there  is  a  material  misstatement  therein,  we  are  required  to 
communicate the matter to those charged with governance and take appropriate actions in accordance with SSAs.

Responsibilities of Management and Directors for the Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with 
the provisions of the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient 
to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and 
transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair 
financial statements and to maintain accountability of assets.

In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going 
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting 
unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do 
so.

The directors’ responsibilities include overseeing the Group’s financial reporting process. 

142

Singapore Telecommunications Limited  |   Annual Report 2018Independent Auditor’s ReportTo the Members of Singapore Telecommunications LimitedFor the financial year ended 31 March 2018Auditor’s Responsibilities for the Audit of the Financial Statements

Our  objectives  are  to  obtain  reasonable  assurance  about  whether  the  financial  statements  as  a  whole  are  free  from 
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable 
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always 
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, 
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on 
the basis of these consolidated financial statements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism 
throughout the audit. We also:

• 

• 

• 

• 

• 

• 

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, 
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and 
appropriate  to  provide  a  basis  for  our  opinion.  The  risk  of  not  detecting  a  material  misstatement  resulting  from 
fraud  is  higher  than  for  one  resulting  from  error,  as  fraud  may  involve  collusion,  forgery,  intentional  omissions, 
misrepresentations, or the override of internal control.

Obtain  an  understanding  of  internal  control  relevant  to  the  audit  in  order  to  design  audit  procedures  that  are 
appropriate  in  the  circumstances,  but  not  for  the  purpose  of  expressing  an  opinion  on  the  effectiveness  of  the 
Group’s internal control.

Evaluate  the  appropriateness  of  accounting  policies  used  and  the  reasonableness  of  accounting  estimates  and 
related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on 
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast 
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty 
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements 
or,  if  such  disclosures  are  inadequate,  to  modify  our  opinion.  Our  conclusions  are  based  on  the  audit  evidence 
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease 
to continue as a going concern. 

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and 
whether the financial statements represent the underlying transactions and events in a manner that achieves fair 
presentation.

Obtain  sufficient  appropriate  audit  evidence  regarding  the  financial  information  of  the  entities  and  business 
activities within the Group to express an opinion on the consolidated financial statements. We are responsible for 
the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We  communicate  with  the  directors  regarding,  among  other  matters,  the  planned  scope  and  timing  of  the  audit  and 
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We  also  provide  the  directors  with  a  statement  that  we  have  complied  with  relevant  ethical  requirements  regarding 
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear 
on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the 
audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters 
in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare 
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences 
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

143

Independent Auditor’s ReportTo the Members of Singapore Telecommunications LimitedFor the financial year ended 31 March 2018Report on Other Legal and Regulatory Requirements

In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary 
corporations  incorporated  in  Singapore  of  which  we  are  the  auditors  have  been  properly  kept  in  accordance  with  the 
provisions of the Act.

The engagement partner on the audit resulting in this Independent Auditor’s Report is Mr Philip Yuen Ewe Jin. 

Public Accountants and 
Chartered Accountants
Singapore 

16 May 2018

144

Singapore Telecommunications Limited  |   Annual Report 2018Independent Auditor’s ReportTo the Members of Singapore Telecommunications LimitedFor the financial year ended 31 March 2018Operating revenue

Operating expenses

Other income

Depreciation and amortisation

Exceptional items

Profit on operating activities

Share of results of associates and joint ventures

Profit before interest, investment income (net) and tax

Interest and investment income (net) 

Finance costs

Profit before tax

Tax expense

Profit after tax

Attributable to -

Shareholders of the Company

Non-controlling interests

Earnings per share attributable to shareholders of the Company

- basic (cents)

- diluted (cents)

Notes

2018
S$ Mil

2017
S$ Mil

4

5

6

7

8

9

10

11

12

13

13

 17,531.8 

 16,711.4 

 (12,701.5)

 (11,929.0)

 258.8 

 215.3 

 5,089.1 

 4,997.7 

 (2,340.1)

 (2,238.9)

 1,940.4 

 (1.2)

 4,689.4 

 2,757.6 

 1,786.7 

 2,017.3 

 6,476.1 

 4,774.9 

 45.6 

 (390.2)

 114.8 

 (374.3)

 6,131.5 

 4,515.4 

 (701.2)

 (684.4)

 5,430.3 

 3,831.0 

 5,451.4 

 (21.1)

 3,852.7 

 (21.7)

 5,430.3 

 3,831.0 

33.40

33.35

 23.96 

 23.91 

The accompanying notes on pages 155 to 249 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 139 to 144.

145

Consolidated Income StatementFor the financial year ended 31 March 2018  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit after tax 

Other comprehensive (loss)/ income:

2018
S$ Mil

2017
S$ Mil

 5,430.3   

 3,831.0 

Items that may be reclassified subsequently to income statement: 

Exchange differences arising from translation of foreign operations 
  and other currency translation differences 

 (1,265.1)

 432.7 

Cash flow hedges 

- Fair value changes during the year 

- Tax effects

- Fair value changes transferred to income statement 

- Tax effects

Available-for-sale investments 

- Fair value changes during the year 

 0.5   

 (55.2)  

 (54.7)  

 2.1   

 46.8   

 48.9   

 (5.8)  

 16.3 

 20.1 

 36.4 

 (1.5)

 (18.8)

 (20.3)

 16.1 

 (31.5)  

 16.5 

Share of other comprehensive income of associates and joint ventures

 650.3   

 223.4 

Other comprehensive (loss)/ income, net of tax

Total comprehensive income

Attributable to -

Shareholders of the Company

Non-controlling interests

 (652.1)  

 688.7 

 4,778.2   

 4,519.7 

 4,798.6   

 4,541.5 

 (20.4)  

 (21.8)

 4,778.2   

 4,519.7 

The accompanying notes on pages 155 to 249 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 139 to 144.

146

Singapore Telecommunications Limited  |   Annual Report 2018Consolidated Statement of Comprehensive IncomeFor the financial year ended 31 March 2018  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

Group

Company

Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments

Non-current assets
Trade and other receivables
Property, plant and equipment
Intangible assets
Subsidiaries
Associates
Joint ventures
Available-for-sale (“AFS”) investments
Derivative financial instruments
Deferred tax assets
Loan to an associate

Total assets

Current liabilities
Trade and other payables
Advance billings 
Current tax liabilities
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain 

Non-current liabilities
Advance billings 
Deferred tax liabilities
Borrowings (unsecured)
Borrowings (secured)
Derivative financial instruments
Net deferred gain
Other non-current liabilities

Total liabilities

Net assets

Share capital and reserves
Share capital
Reserves
Equity attributable to shareholders 
  of the Company
Non-controlling interests
Other reserve

15
16
17
25

16
18
19
20
21
22
24
25
12
26

27

28
29
25
26

12
28
29
25
26
30

31

 524.9 
 5,035.4 
 397.4 
 23.2 
 5,980.9 

 747.2 
 11,800.8 
 13,969.1 
 - 
 2,005.5 
 12,782.6 
 197.9 
 409.6 
 360.1 
 -   
 42,272.8 

 533.8 
 4,924.2 
 352.2 
 107.3 
 5,917.5

 769.5 
 11,892.9 
 13,072.8 
 - 
 1,952.2 
 12,282.9 
 192.9 
 455.2 
 657.8 
 1,100.5 
 42,376.7 

 92.0 
 2,323.9 
 21.8 
 70.1 
 2,507.8 

 143.7 
 2,303.9 
 - 
 19,425.9 
 24.7 
 22.8 
 5.5 
 134.1 
 - 
 - 
 22,060.6 

 89.2 
 1,673.3 
 23.8 
 107.1 
 1,893.4 

 155.1 
 2,326.5 
 - 
 17,441.0 
 603.5 
 23.0 
 37.4 
 284.9 
 - 
 1,100.5 
 21,971.9 

 48,253.7 

 48,294.2 

 24,568.4 

 23,865.3 

 5,233.9 
 794.1 
 351.3 
 1,800.5 
 23.1 
 70.0 
 20.1 
 8,293.0 

 225.1 
 520.4 
 8,525.1 
 81.5 
 302.2 
 357.7 
 295.1 
 10,307.1 

 4,922.4 
 835.4 
 296.3 
 3,046.9 
 86.7 
 15.8 
 68.8 
 9,272.3 

 245.7 
 574.6 
 7,852.7 
 199.6 
 303.1 
 1,282.7 
 349.9 
 10,808.3 

 1,468.4 
 80.1 
 101.5 
 - 
7.4 
84.9 
 - 
 1,742.3 

 136.7 
 275.6 
 673.2 
 68.5 
 279.0 
 - 
 31.4 
 1,464.4 

 1,602.0 
 74.8 
100.6 
 - 
1.5 
110.0 
 - 
 1,888.9 

 138.3 
 282.2 
 746.2 
 157.2 
 370.0 
 - 
 23.7 
 1,717.6 

 18,600.1 

 20,080.6 

 3,206.7 

 3,606.5 

 29,653.6 

 28,213.6 

 21,361.7 

 20,258.8 

 4,127.3 
 25,551.9 

 29,679.2 
 (3.2)
 (22.4)

 4,127.3 
 24,086.3 

 28,213.6 
 22.4 
 (22.4)

 4,127.3 
 17,234.4 

 21,361.7 
 -   
 -   

 4,127.3 
 16,131.5 

 20,258.8 
 - 
 - 

Total equity

 29,653.6 

 28,213.6 

 21,361.7 

 20,258.8 

The accompanying notes on pages 155 to 249 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 139 to 144.

147

Statements of Financial PositionAs at 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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148

Singapore Telecommunications Limited  |   Annual Report 2018Statements of Changes in EquityFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
 
   
 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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I

Statements of Changes in EquityFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company - 2018

Share
Capital
S$ Mil

Treasury 

Shares (1)
S$ Mil

Capital
Reserve 
S$ Mil

Hedging
Reserve
S$ Mil

Fair Value
Reserve
S$ Mil

Retained
Earnings
S$ Mil

Total 
Equity 
S$ Mil

Balance as at 1 April 2017

 4,127.3 

 (0.9)

 38.3 

 60.3 

 27.7 

 16,006.1 

 20,258.8 

Changes in equity for the year

Performance shares purchased  
  by the Company 

Performance shares vested 

Equity-settled share-based  
  payment

Transfer of liability to equity 

Cash paid to employees under  
  performance share plans
Contribution to Trust (5)
Final dividend paid 
  (see Note 32)

Interim dividend paid 
  (see Note 32)

Special dividend paid 
  (see Note 32)

Total comprehensive (loss)/  
  income for the year

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 (2.4)

 2.3 

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 (2.3)

 11.8 

 4.2 

 (0.2)

 (12.4)

 -  

 -  

 -  

 (0.1)

 1.1 

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 (2.4)

 -  

 11.8 

 4.2 

 (0.2)

 (12.4)

 -  

 (1,747.2)

 (1,747.2)

 -  

 (1,110.4)

 (1,110.4)

 -  

 -  

 (489.9)

 (489.9)

 (3,347.5)

 (3,346.5)

 -  

 -  

 -  

 (0.2)

 (25.5)

 4,475.1 

 4,449.4 

Balance as at 31 March 2018

 4,127.3 

 (1.0)

 39.4 

 60.1 

 2.2 

 17,133.7 

 21,361.7 

The accompanying notes on pages 155 to 249 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 139 to 144.

150

Singapore Telecommunications Limited  |   Annual Report 2018Statements of Changes in EquityFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
          
 
 
 
 
 
 
 
 
 
 
Company - 2017

Share
Capital
S$ Mil

Treasury 

Shares (1)
S$ Mil

Capital
Reserve 
S$ Mil

Hedging
Reserve
S$ Mil

Fair Value
Reserve
S$ Mil

Retained
Earnings
S$ Mil

Total 
Equity 
S$ Mil

Balance as at 1 April 2016

 2,634.0 

 (1.2)

 (71.3)

 46.7 

 25.5 

 15,600.1 

 18,233.8 

Changes in equity for the year

Issue of new shares 
  (net of costs) (6)
Performance shares purchased  
  by the Company 

Performance shares vested 

Equity-settled share-based  
  payment

Transfer of liability to equity 

Cash paid to employees under  
  performance share plans
Contribution to Trust (5)
Final dividend paid 
  (see Note 32)

Interim dividend paid 
  (see Note 32)

Total comprehensive income  
  for the year

 1,493.3 

 -  

 109.1 

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 (1.9)

 2.2 

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 (2.2)

 12.7 

 4.9 

 (0.3)

 (14.6)

 -  

 -  

 1,493.3 

 0.3 

 109.6 

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 1,602.4 

 -  

 -  

 -  

 -  

 -  

 -  

 (1.9)

 -  

 12.7 

 4.9 

 (0.3)

 (14.6)

 -  

 (1,706.0)

 (1,706.0)

 -  

 -  

 (1,110.4)

 (1,110.4)

 (2,816.4)

 (1,213.2)

 -  

 -  

 -  

 13.6 

 2.2 

 3,222.4 

 3,238.2 

Balance as at 31 March 2017  

 4,127.3 

 (0.9)

 38.3 

 60.3 

 27.7 

 16,006.1 

 20,258.8 

Notes:
(1) 
(2) 

‘Treasury Shares’ are accounted for in accordance with Singapore Financial Reporting Standard (“FRS”) 32, Financial Instruments: Presentation.

‘Currency Translation Reserve’ relates mainly to the translation of the net assets of foreign subsidiaries, associates and joint ventures of the Group 
denominated mainly in Australian Dollar, Indian Rupee, Indonesian Rupiah, Philippine Peso, Thai Baht and United States Dollar.

(3)   

(4) 

‘Other Reserves’ relate mainly to goodwill on acquisitions completed prior to 1 April 2001 and the share of other comprehensive income or loss of the 
associates and joint ventures. 

This amount relates to a reserve for an obligation arising from a put option written with the non-controlling shareholder of Trustwave Holdings, Inc. 
(“Trustwave”). When exercised under certain conditions, this will require Singtel to purchase the remaining 2% equity interest in Trustwave.

(5)   DBS Trustee Limited (the “Trust”) is the trustee of a trust established to administer the performance share plans. 
(6)    The amount credited to ‘Capital Reserve’ relates to fair value adjustment on the new shares issued on completion of the acquisitions of equity interest 

in Intouch Holdings Public Company Limited and Bharti Telecom Limited.

The accompanying notes on pages 155 to 249 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 139 to 144.

151

Statements of Changes in EquityFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Operating Activities

Profit before tax

 6,131.5 

 4,515.4 

2018
S$ Mil

2017
S$ Mil

Adjustments for -
  Depreciation and amortisation 
  Share of results of associates and joint ventures 
  Exceptional items 
  Interest and investment income (net)
  Finance costs 
  Other non-cash items

 2,340.1 
 (1,786.7)
 (1,965.6)
 (45.6)
 390.2 
 30.3 
 (1,037.3)

 2,238.9 
 (2,017.3)
 (37.1)
 (114.8)
 374.3 
 25.8 
 469.8 

Operating cash flow before working capital changes

 5,094.2 

 4,985.2 

Changes in operating assets and liabilities
Trade and other receivables
Trade and other payables
Inventories

Cash generated from operations

Dividends received from associates and joint ventures
Income tax and withholding tax paid (Note 1)
Payment to employees in cash under performance share plans 

Net cash from operating activities

Cash Flows From Investing Activities

Payment for purchase of property, plant and equipment
Purchase of intangible assets
Investment in associate and joint ventures (Note 2)
Payments for acquisition of subsidiaries, net of cash acquired (Note 3)
Investment in AFS investments
Withholding tax paid on intra-group interest income
Proceeds/ deferred proceeds from disposal of associates and joint ventures (Note 4)
Repayment of loan by an associate (Note 4)
Proceeds from sale of property, plant and equipment
Proceeds from sale of AFS investments 
Interest received
Dividends received from AFS investments (net of withholding tax paid)
Contribution from non-controlling interests

 (195.4)
 76.5 
 (59.1)

 (561.7)
 93.4 
 (23.6)

 4,916.2 

 4,493.3 

 1,647.7 
 (607.8)
 (0.9)

 1,655.5 
 (833.8)
 (0.3)

 5,955.2 

 5,314.7

 (2,349.0)
 (1,124.4)
 (540.6)
 (336.5)
 (59.6)
 (26.0)
 1,146.4 
 1,100.5 
 142.6 
 77.7 
 16.4 
 1.8 
 -  

 (2,260.6)
 (257.7)
 (2,471.8)
 (4.9)
 (34.6)
 (27.3)
 61.5 
 -  
 34.2 
 75.0 
 39.4 
 1.7 
 12.9 

Net cash used in investing activities 

 (1,950.7)

 (4,832.2)

The accompanying notes on pages 155 to 249 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 139 to 144.

152

Singapore Telecommunications Limited  |   Annual Report 2018Consolidated Statementof Cash FlowsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
Cash Flows From Financing Activities

Proceeds from term loans
Repayment of term loans
Proceeds from bond issue
Repayment of bonds
Proceeds from finance lease liabilites
Finance lease payments
  Net (repayment of)/ proceeds from borrowings
Proceeds from issue of shares (Note 2)
Final dividend paid to shareholders of the Company
Interim dividend paid to shareholders of the Company 
Special dividend paid to shareholders of the Company
Net interest paid on borrowings and swaps
Settlement of swap for bonds repaid
Purchase of performance shares
Dividend paid to non-controlling interests
Others

Note 

2018
S$ Mil

2017
S$ Mil

 6,948.6 
 (6,726.0)
 430.2 
 (936.4)
 18.0 
 (46.3)
 (311.9)
 -   
 (1,746.6)
 (1,110.0)
 (489.7)
 (379.9)
 61.4 
 (25.0)
 (5.4)
 (2.1)

 6,174.9 
 (5,263.7)
 675.4 
 (404.2)
 10.1 
 (34.9)
 1,157.6 
 1,602.4 
 (1,705.5)
 (1,110.0)
 -   
 (351.3)
 16.3 
 (27.2)
 (5.0)
 0.3 

Net cash used in financing activities

 (4,009.2)

 (422.4)

Net change in cash and cash equivalents
Exchange effects on cash and cash equivalents
Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

15

Note 1:     Income tax and withholding tax paid

 (4.7)
 (4.2)
 533.8 

 524.9 

 60.1 
 11.9 
 461.8 

 533.8 

The payments in the previous financial year included an amount of S$142 million (A$134 million) paid to the 
Australian Taxation Office in November 2016 for amended assessments under dispute related to the acquisition 
financing of Optus (see Note 16).

Note 2:     Investments in associate and joint ventures, and proceeds from issue of shares

On 12 March 2018, Singtel completed the acquisition of an additional 1.7% equity interest in Bharti Telecom 
Limited (“BTL”) for S$539 million.

On 17 November 2016, Singtel completed the acquisitions of 21.0% equity interest in Intouch Holdings Public 
Company Limited (“Intouch”) for S$1.59 billion and an additional 7.4% equity interest in BTL for S$884 million. 
The acquisitions were partially financed by proceeds of S$1.60 billion from the issuance of 385,581,351 new 
ordinary shares of Singtel listed on the Singapore Exchange. 

The accompanying notes on pages 155 to 249 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 139 to 144.

153

Consolidated Statementof Cash FlowsFor the financial year ended 31 March 2018  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 3:   Payments for acquisition of subsidiaries 

(a)      On  10  April  2017,  Singtel’s  wholly-owned  subsidiary,  Amobee,  Inc.  (“Amobee”),  acquired  100%  of 
the  share  capital  of  Turn,  Inc.  (“Turn”)  for  S$392  million  (US$281  million).  The  acquisition  of  Turn, 
a  leading  provider  of  a  global  technology  platform  for  marketers  and  agencies,  expands  Amobee’s 
digital marketing technology. The fair values of identifiable net assets and the net cash outflow on the 
acquisition were as follows –

Identifiable intangible assets

Non-current assets 

Cash and cash equivalents

Current assets (excluding cash and cash equivalents)

Total liabilities

Net assets acquired

Goodwill (see Note 19.1)

Total cash consideration 

Less: Cash and cash equivalents acquired 

Net outflow of cash 

31 March 2018
S$ Mil

 53.3 

 11.8 

 55.6 

 103.6 

 (179.7)

 44.6 

 347.5 

 392.1 

 (55.6)

 336.5 

(b) 

The  payments  in  the  previous  financial  year  included  deferred  payments  of  S$3.4  million  and  S$1.5 
million made in respect of the acquisitions of Adconion Media, Inc. and Adconion Pty Limited (together, 
“Adconion”) and Ensyst Pty Limited  respectively.

Note 4:   Proceeds from disposal of associate, and repayment of loan by an associate  

On  19  July  2017,  Singtel  sold  its  100%  interest  in  NetLink  Trust  to  NetLink  NBN  Trust  for  an  aggregate 
consideration of S$1.89 billion comprising a cash consideration of S$1.11 billion and 24.8% interest in NetLink 
NBN Trust. In addition, a unitholder loan of S$1.10 billion was repaid by NetLink Trust to Singtel.  

The accompanying notes on pages 155 to 249 form an integral part of these financial statements. 
Independent Auditor’s Report – pages 139 to 144.

154

Singapore Telecommunications Limited  |   Annual Report 2018Consolidated Statementof Cash FlowsFor the financial year ended 31 March 2018 
 
 
 
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1. 

GENERAL

Singtel is domiciled and incorporated in Singapore and is publicly traded on the Singapore Exchange. The address 
of its registered office is 31 Exeter Road, Comcentre, Singapore 239732.

The principal activities of the Company consist of the operation and provision of telecommunications systems 
and services, and investment holding.  The principal activities of the significant subsidiaries are disclosed in Note 
42.

In Singapore, the Group has the rights to provide fixed national and international telecommunications services to 
31 March 2037, and public cellular mobile telephone services to 31 March 2032. 

In addition, the Group is licensed to offer Internet services and has also obtained frequency spectrum and licence 
rights to install, operate and maintain mobile communication systems and services including wireless broadband 
systems and services. The Group also holds the requisite licence to provide nationwide subscription television 
services.

In  Australia,  Optus  is  granted  telecommunication  licences  under  the  Telecommunications  Act  1991.  Pursuant 
to  the  Telecommunications  (Transitional  Provisions  and  Consequential  Amendments)  Act  1997,  the  licences 
continued to have effect after the deregulation of telecommunications in Australia in 1997.  The licences do not 
have a finite term, but are of continuing operation until cancelled under the Telecommunications Act 1997.

These financial statements were authorised and approved for issue in accordance with a Directors’ resolution 
dated 16 May 2018.

2. 

SIGNIFICANT ACCOUNTING POLICIES

2.1 

Basis of Accounting 

The  financial  statements  are  prepared  in  accordance  with  Singapore  Financial  Reporting  Standards  (“FRS”) 
including related interpretations, and the provisions of the Singapore Companies Act. They have been prepared 
under the historical cost convention, except as disclosed in the accounting policies below. 

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The preparation of financial statements in conformity with FRS requires management to exercise its judgement 
in the process of applying the Group’s accounting policies.  It also requires the use of accounting estimates and 
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and 
liabilities  at  the  date  of  the  financial  statements,  and  the  reported  amounts  of  revenues  and  expenses  during 
the financial year.  Although these estimates are based on management’s best knowledge of current events and 
actions, actual results may ultimately differ from those estimates.  

Critical accounting estimates and assumptions used that are significant to the financial statements, and areas 
involving a higher degree of judgement are disclosed in Note 3.

155

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
2.1 

Basis of Accounting (Cont’d)

The accounting policies have been consistently applied by the Group, and are consistent with those used in the 
previous financial year. The adoption of the new or revised FRS and Interpretations to FRS (“INT FRS”) which 
were  mandatory  from  1  April  2017  had  no  significant  impact  on  the  financial  statements  of  the  Group  or  the 
Company in the current financial year. 

2.2  

Group Accounting

The accounting policy for investments in subsidiaries, associates and joint ventures in the Company’s financial 
statements is stated in Note 2.4. The Group’s accounting policy on goodwill is stated in Note 2.15.1.

2.2.1  Subsidiaries

Subsidiaries are entities (including structured entities) controlled by the Group. Control exists when the Group has 
power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has 
the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights 
that give the Group the ability to direct activities that significantly affect the entity’s returns. The Group reassesses 
whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more 
of  the  elements  of  control  listed  above.  Subsidiaries  are  consolidated  from  the  date  that  control  commences 
until  the  date  that  control  ceases.    All  significant  inter-company  balances  and  transactions  are  eliminated  on 
consolidation.

2.2.2  Associates 

Associates  are  entities  over  which  the  Group  has  significant  influence.  Significant  influence  is  the  power  to 
participate in the financial and operating policy decisions of the investee but is not control or joint control over 
those policies.  

Investments in associates are accounted for in the consolidated financial statements using the equity method of 
accounting.  Equity accounting involves recording the investment in associates initially at cost, and recognising 
the Group’s share of the post-acquisition results of associates in the consolidated income statement, and the 
Group’s share of post-acquisition reserve movements in reserves. The cumulative post-acquisition movements 
are adjusted against the carrying amount of the investments in the consolidated statement of financial position. 

Where the Group’s interest in an associate reduces as a result of a deemed disposal, any gain or loss arising as 
a result of the deemed disposal is taken to the consolidated income statement.

Where the Group increases its interest in its existing associate and it remains as an associate, the incremental 
cost of investment is added to the existing carrying amount without considering the fair value of the associate’s 
identifiable assets and liabilities.

In  the  consolidated  statement  of  financial  position,  investments  in  associates  include  goodwill  on  acquisition 
identified on acquisitions completed on or after 1 April 2001, net of accumulated impairment losses. Goodwill is 
assessed for impairment as part of the investment in associates.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including loans 
that are in fact extensions of the Group’s investment, the Group does not recognise further losses, unless it has 
incurred or guaranteed obligations in respect of the associate.

Unrealised gains resulting from transactions with associates are eliminated to the extent of the Group’s interest 
in the associate. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that 
there is no evidence of impairment.

156

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
2.2.3 

Joint ventures
Joint ventures are joint arrangements whereby the parties that have joint control of the arrangement have rights 
to  the  net  assets  of  the  joint  arrangements.  Joint  control  is  the  contractually  agreed  sharing  of  control  of  an 
arrangement, which exists only when decisions about the relevant activities require unanimous consent of the 
parties sharing the control. 

The Group’s interest in joint ventures is accounted for in the consolidated financial statements using the equity 
method of accounting.

Where the Group’s interest in a joint venture reduces as a result of a deemed disposal, any gain or loss arising as 
a result of the deemed disposal is taken to the consolidated income statement.

Where the Group increases its interest in its existing joint venture and it remains as a joint venture, the incremental 
cost of investment is added to the existing carrying amount without considering the fair value of the joint venture’s 
identifiable assets and liabilities.

In the consolidated statement of financial position, investments in joint ventures include goodwill on acquisition 
identified on acquisitions completed on or after 1 April 2001, net of accumulated impairment losses. Goodwill is 
assessed for impairment as part of the investment in joint ventures.

The Group’s interest in its unincorporated joint operations is accounted for by recognising the Group’s assets and 
liabilities from the joint operations, as well as expenses incurred by the Group and the Group’s share of income 
earned from the joint operations, in the consolidated financial statements.

Unrealised gains resulting from transactions with joint ventures are eliminated to the extent of the Group’s interest 
in the joint venture. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent 
that there is no evidence of impairment.

2.2.4  Dividends from associates and joint ventures 

Dividends are recognised when the Group’s rights to receive payment have been established. Dividends received 
from an associate or joint venture in excess of the Group’s carrying value of the equity accounted investee are 
recognised  as  dividend  income  in  the  consolidated  income  statement  where  there  is  no  legal  or  constructive 
obligation to refund the dividend nor is there any commitment to provide financial support to the investee. Equity 
accounting  is  then  suspended  until  the  investee  has  made  sufficient  profits  to  cover  the  income  previously 
recognised for the excess cash distributions. 

2.2.5  Structured entity

The Trust has been consolidated in the consolidated financial statements under FRS 110, Consolidated Financial 
Statements.

2.2.6  Business combinations

Business combinations are accounted for using the acquisition method on and after 1 April 2010. The consideration 
for each acquisition is measured at the aggregate of the fair values of assets given, liabilities incurred and equity 
interests issued by the Group and any contingent consideration arrangement at acquisition date. Acquisition-
related costs, other than those associated with the issue of debt or equity, are expensed as incurred. 

Any  contingent  consideration  payable  is  recognised  at  fair  value  at  the  acquisition  date.  If  the  contingent 
consideration is classified as equity, it is not re-measured and settlement is accounted for within equity. Otherwise, 
subsequent changes to the fair value of the contingent consideration are recognised in the consolidated income 
statement.

For business combinations that are achieved in stages, any existing equity interests in the acquiree entity are re-
measured to their fair values at acquisition date and any changes are taken to the consolidated income statement.

157

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
2.2.6  Business combinations (Cont’d)

Non-controlling interests in subsidiaries represent the equity in subsidiaries which are not attributable, directly 
or indirectly, to the shareholders of the Company, and are presented separately in the consolidated statement 
of  comprehensive  income,  consolidated  statement  of  changes  in  equity  and  within  equity  in  the  consolidated 
statement of financial position. The Group elects for each individual business combination whether non-controlling 
interests in the acquiree entity are recognised at fair value, or at the non-controlling interests’ proportionate share 
of the fair value of the acquiree entity’s identifiable net assets, at the acquisition date. 

Total  comprehensive  income  is  attributed  to  non-controlling  interests  based  on  their  respective  interests  in  a 
subsidiary, even if this results in the non-controlling interests having a debit balance.  

Changes in the Group’s interest in subsidiaries that do not result in loss of control are accounted for as equity 
transactions. 

When the Group loses control of a subsidiary, any interest retained in the former subsidiary is recorded at fair 
value with the re-measurement gain or loss recognised in the consolidated income statement. 

2.3 

Share Capital

Ordinary  shares  are  classified  as  equity.  Incremental  costs  directly  attributable  to  the  issuance  of  new  equity 
shares are taken to equity as a deduction, net of tax, from the proceeds.  

When  the  Company  purchases  its  own  equity  share  capital,  the  consideration  paid,  including  any  directly 
attributable costs, is recognised as ‘Treasury Shares’ within equity.  When the shares are subsequently disposed, 
the realised gains or losses on disposal of the treasury shares are included in ‘Other Reserves’ of the Company.

The  Trust  acquires  shares  in  the  Company  from  the  open  market  for  delivery  to  employees  upon  vesting  of 
performance shares awarded under Singtel performance share plans. Such shares are designated as ‘Treasury 
Shares’.  In  the  consolidated  financial  statements,  the  cost  of  unvested  shares,  including  directly  attributable 
costs, is recognised as ‘Treasury Shares’ within equity. 

Upon  vesting  of  the  performance  shares,  the  weighted  average  costs  of  the  shares  delivered  to  employees, 
whether held by the Company or the Trust, are transferred to ‘Capital Reserve’ within equity in the consolidated 
financial statements.

2.4 

Investments in Subsidiaries, Associates and Joint Ventures 

In  the  Company’s  statement  of  financial  position,  investments  in  subsidiaries,  associates  and  joint  ventures, 
including loans that meet the definition of equity instruments, are stated at cost less accumulated impairment 
losses.    Where  an  indication  of  impairment  exists,  the  carrying  amount  of  the  investment  is  assessed  and 
written down immediately to its recoverable value. On disposal of investments in subsidiaries, associates and 
joint ventures, the difference between the net disposal proceeds and the carrying amount of the investment is 
recognised in the income statement of the Company.

2.5 

Investments

Purchases and sales of investments are recognised on trade date, which is the date that the Group commits to 
purchase or sell the investment.

158

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
2.5.1  Available-for-sale (“AFS”) investments 

AFS investments are initially recognised at fair value plus directly attributable transaction costs.  

They are subsequently stated at fair value at the end of the reporting period, with all resulting gains and losses, 
including currency translation differences, taken to the ‘Fair Value Reserve’ within equity. AFS investments for 
which fair values cannot be reliably determined are stated at cost less accumulated impairment losses.   

When AFS investments are sold or impaired, the accumulated fair value adjustments in the ‘Fair Value Reserve’ 
are included in the income statement.

A significant or prolonged decline in fair value below the cost is objective evidence of impairment. Impairment 
loss is computed as the difference between the acquisition cost and current fair value, less any impairment loss 
previously recognised in the income statement. Impairment losses recognised in the income statement on equity 
investments are not reversed through the income statement until the equity investments are disposed.

2.6 

Derivative Financial Instruments and Hedging Activities

Derivative financial instruments are initially recognised at fair value on the date the derivative contract is entered 
into and are subsequently re-measured at their fair values at the end of each reporting period. 

A derivative financial instrument is carried as an asset when the fair value is positive and as a liability when the 
fair value is negative.

Any gains or losses arising from changes in fair value are recognised immediately in the income statement, unless 
they qualify for hedge accounting.

2.6.1  Hedge accounting

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship 
to which the Group wishes to apply hedge accounting, as well as its risk management objectives and strategy 
for  undertaking  the  hedge  transactions.  The  documentation  includes  identification  of  the  hedging  instrument, 
the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging 
instrument’s  effectiveness  in  offsetting  the  exposure  to  changes  in  the  hedged  item’s  fair  value  or  cash  flows 
attributable to the hedged risk.  Such hedges are expected to be highly effective in achieving offsetting changes 
in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly 
effective throughout the financial reporting periods for which they are designated.

Fair value hedge
Designated derivative financial instruments that qualify for fair value hedge accounting are initially recognised at 
fair value on the date that the contract is entered into.  Changes in fair value of derivatives are recorded in the 
income statement together with any changes in the fair value of the hedged items that are attributable to the 
hedged risks. 

Hedge  accounting  is  discontinued  when  the  Group  revokes  the  hedging  relationship,  the  hedging  instrument 
expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting.  The adjustment to the 
carrying amount of the hedged item arising from the hedged risk is amortised to the income statement from that 
date. 

Cash flow hedge 
The effective portion of changes in the fair value of the designated derivative financial instruments that qualify as 
cash flow hedges are recognised in ‘Other Comprehensive Income’. The gain or loss relating to the ineffective 
portion is recognised immediately in the income statement. Amounts accumulated in the ‘Hedging Reserve’ are 
transferred to the income statement in the periods when the hedged items affect the income statement.

159

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
2.6.1  Hedge accounting (Cont’d)

Hedge  accounting  is  discontinued  when  the  Group  revokes  the  hedging  relationship,  the  hedging  instrument 
expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting.  Any cumulative gain or 
loss deferred in equity at that time remains in equity and is recognised when the forecast transaction is ultimately 
recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative 
gain or loss that was deferred in equity is recognised immediately in the income statement.

Net investment hedge
Changes in the fair value of designated derivatives that qualify as net investment hedges, and which are highly 
effective,  are  recognised  in  ‘Other  Comprehensive  Income’  in  the  consolidated  financial  statements  and  the 
amounts accumulated in ‘Currency Translation Reserve’ are transferred to the consolidated income statement in 
the period when the foreign operation is disposed. 

In the Company’s financial statements, the gain or loss on the financial instrument used to hedge a net investment 
in a foreign operation of the Group is recognised in the income statement.

The Group has entered into the following derivative financial instruments to hedge its risks, namely -

Cross currency swaps and interest rate swaps are fair value hedges for the interest rate risk and cash flow hedges 
for the currency risk arising from the Group’s issued bonds. The swaps involve the exchange of principal and 
floating or fixed interest receipts in the foreign currency in which the issued bonds are denominated, for principal 
and floating or fixed interest payments in the Group’s functional currency.

Certain  cross  currency  swaps  relate  to  net  investment  hedges  for  the  foreign  currency  exchange  risk  on  the 
Group’s Australia operations.

Forward foreign exchange contracts are cash flow hedges for the Group’s exposure to foreign currency exchange 
risks arising from forecasted or committed expenditure.

2.7 

Fair Value Estimation of Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction 
between market participants at the measurement date, regardless of whether that price is directly observable or 
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes 
into account the characteristics of the asset or liability which market participants would take into account when 
pricing the asset or liability at the measurement date. 

The following methods and assumptions are used to estimate the fair value of each class of financial instrument -

Bank balances, receivables and payables, current borrowings
The carrying amounts approximate fair values due to the relatively short term maturity of these instruments.

Quoted and unquoted investments
The fair value of investments traded in active markets is based on the market quoted mid-price (average of offer 
and bid price) or the mid-price quoted by the market maker at the close of business at the end of the reporting 
period. 

The fair values of unquoted investments are determined by using valuation techniques.  These include the use of 
recent arm’s length transactions, reference to the net asset values of the investee companies or discounted cash 
flow analysis.

160

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.7 

Fair Value Estimation of Financial Instruments (Cont’d)

Cross currency and interest rate swaps
The fair value of a cross currency or an interest rate swap is the estimated amount that the swap contract can 
be  exchanged  for  or  settled  with  under  normal  market  conditions.  This  fair  value  can  be  estimated  using  the 
discounted cash flow method where the future cash flows of the swap contract are discounted at the prevailing 
market foreign exchange rates and interest rates. Market interest rates are actively quoted interest rates or interest 
rates computed by applying techniques to these actively quoted interest rates.

Forward foreign currency contracts
The  fair  value  of  forward  foreign  exchange  contracts  is  determined  using  forward  exchange  market  rates  for 
contracts with similar maturity profiles at the end of the reporting period.

Non-current borrowings 
For disclosure purposes, the fair values of non-current borrowings which are traded in active markets are based on 
the market quoted ask price. For other non-current borrowings, the fair values are based on valuations provided 
by service providers or estimated by discounting the future contractual cash flows using discount rates based on 
the borrowing rates which the Group expects would be available at the end of the reporting period.

2.8 

Financial Guarantee Contracts

Financial  guarantees  issued  by  the  Company  prior  to  1  April  2010  are  recorded  initially  at  fair  values  plus 
transaction costs and amortised in the income statement over the period of the guarantee. Financial guarantees 
issued by the Company on or after 1 April 2010 are directly charged to the subsidiary as guarantee fees based on 
fair values.

2.9 

Trade and Other Receivables

Trade and other receivables, including loans given by the Company to subsidiaries, associates and joint ventures, 
are initially recognised at fair values and subsequently measured at amortised cost using the effective interest 
method, less allowance for impairment.  

An allowance for impairment of trade and other receivables is established when there is objective evidence that 
the Group will not be able to collect all amounts due according to the original terms of the debts.  Loss events 
include financial difficulty or bankruptcy of the debtor, significant delay in payments and breaches of contracts. 
The  impairment  loss,  measured  as  the  difference  between  the  debt’s  carrying  amount  and  the  present  value 
of  estimated  future  cash  flows  discounted  at  the  original  effective  interest  rate,  is  recognised  in  the  income 
statement. When the debt becomes uncollectible, it is written off against the allowance account. Subsequent 
recoveries of amounts previously written off are recognised in the income statement.

2.10 

Trade and Other Payables

Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost using 
the effective interest method.

2.11 

Borrowings

Borrowings are initially recognised at fair value of the consideration received less directly attributable transaction 
costs. After initial recognition, unhedged borrowings are subsequently stated at amortised cost using the effective 
interest method. 

161

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
    
 
 
 
 
2.12 

Cash and Cash Equivalents

For  the  purpose  of  the  consolidated  statement  of  cash  flows,  cash  and  cash  equivalents  comprise  cash  on 
hand, balances with banks and fixed deposits with original maturity of mainly three months or less, net of bank 
overdrafts which are repayable on demand and which form an integral part of the Group’s cash management.  

Bank overdrafts are included under borrowings in the statement of financial position.

2.13 

Foreign Currencies

2.13.1  Functional and presentation currency 

Items included in the financial statements of each entity in the Group are measured using the currency of the 
primary  economic  environment  in  which  the  entity  operates  (the  “functional  currency”).  The  statement  of 
financial position and statement of changes in equity of the Company and consolidated financial statements of 
the Group are presented in Singapore Dollar, which is the functional and presentation currency of the Company 
and the presentation currency of the Group. 

2.13.2  Transactions and balances

Transactions  in  a  currency  other  than  the  functional  currency  (“foreign  currency”)  are  translated  into  the 
functional currency at the exchange rates prevailing at the date of the transactions.  Monetary assets and liabilities 
denominated in foreign currencies at the end of the reporting period are translated at exchange rates ruling at that 
date. Foreign exchange differences arising from translation are recognised in the income statement. 

2.13.3  Translation of foreign operations’ financial statements

In  the  preparation  of  the  consolidated  financial  statements,  the  assets  and  liabilities  of  foreign  operations  are 
translated to Singapore Dollar at exchange rates ruling at the end of the reporting period except for share capital 
and reserves which are translated at historical rates of exchange (see Note 2.13.4 for translation of goodwill and 
fair value adjustments). 

Income and expenses in the income statement are translated using either the average exchange rates for the 
month or year, which approximate the exchange rates at the dates of the transactions. All resulting translation 
differences are taken directly to ‘Other Comprehensive Income’.

On loss of control of a subsidiary, loss of significant influence of an associate or loss of joint control of a joint 
venture, the accumulated translation differences relating to that foreign operation are reclassified from equity to 
the consolidated income statement as part of gain or loss on disposal. 

On partial disposal where there is no loss of control of a subsidiary, the accumulated translation differences relating 
to the disposal are reclassified to non-controlling interests. For partial disposals of associates or joint ventures, 
the  proportionate  accumulated  translation  differences  relating  to  the  disposal  are  taken  to  the  consolidated 
income statement.

2.13.4  Translation of goodwill and fair value adjustments

Goodwill and fair value adjustments arising on the acquisition of foreign entities completed on or after 1 April 
2005 are treated as assets and liabilities of the foreign entities and are recorded in the functional currencies of the 
foreign entities and translated at the exchange rates prevailing at the end of the reporting period. However, for 
acquisitions of foreign entities completed prior to 1 April 2005, goodwill and fair value adjustments continue to be 
recorded at the exchange rates at the respective dates of the acquisitions.

2.13.5  Net investment in a foreign entity 

The exchange differences on loans from the Company to its subsidiaries, associates or joint ventures which form 
part of the Company’s net investment in the subsidiaries, associates or joint ventures are included in ‘Currency 
Translation Reserve’ in the consolidated financial statements. On disposal of the foreign entity, the accumulated 
exchange differences deferred in the ‘Currency Translation Reserve’ are reclassified to the consolidated income 
statement in a similar manner as described in Note 2.13.3.  

162

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
2.14 

Provisions

A provision is recognised when there is a present legal or constructive obligation as a result of past events, it is 
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and 
a reliable estimate can be made of the amount of the obligation.  No provision is recognised for future operating 
losses.

The  provision  for  liquidated  damages  in  respect  of  information  technology  contracts  is  made  based  on 
management’s best estimate of the anticipated liability.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.

2.15 

Intangible Assets

2.15.1  Goodwill

Goodwill  on  acquisition  of  subsidiaries  on  and  after  1  April  2010  represents  the  excess  of  the  consideration 
transferred, the recognised amount of any non-controlling interest in the acquiree entity and the fair value of any 
previous equity interest in the acquiree entity over the fair value of the net identifiable assets acquired, including 
contingent  liabilities,  at  the  acquisition  date.  Such  goodwill  is  recognised  separately  as  intangible  asset  and 
stated at cost less accumulated impairment losses.

Acquisitions completed prior to 1 April 2001
Goodwill on acquisitions of subsidiaries, associates and joint ventures completed prior to 1 April 2001 had been 
adjusted in full against ‘Other Reserves’ within equity. Such goodwill has not been retrospectively capitalised and 
amortised.

The Group also had acquisitions where the costs of acquisition were less than the fair value of identifiable net 
assets  acquired.  Such  differences  (negative  goodwill)  were  adjusted  against  ‘Other  Reserves’  in  the  year  of 
acquisition.

Goodwill which has been previously taken to ‘Other Reserves’, is not taken to the consolidated income statement 
when the entity is disposed of or when the goodwill is impaired.

Acquisitions completed on or after 1 April 2001
Prior to 1 April 2004, goodwill on acquisitions of subsidiaries, associates and joint ventures completed on or after 
1 April 2001 was capitalised and amortised on a straight-line basis in the consolidated income statement over its 
estimated useful life of up to 20 years. In addition, goodwill was assessed for indications of impairment at the end 
of each reporting period.

Since 1 April 2004, goodwill is no longer amortised but is tested annually for impairment or whenever there is an 
indication of impairment (see Note 2.16). The accumulated amortisation for goodwill as at 1 April 2004 had been 
eliminated with a corresponding decrease in the capitalised goodwill.

A bargain purchase gain is recognised directly in the consolidated income statement.

Gains  or  losses  on  disposal  of  subsidiaries,  associates  and  joint  ventures  include  the  carrying  amount  of 
capitalised goodwill relating to the entity sold.

163

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
2.15.2  Other intangible assets

Optus’ telecommunication licences are not amortised and are reviewed for impairment on an annual basis. Other 
expenditure on telecommunication and spectrum licences are capitalised and amortised using the straight-line 
method over their estimated useful lives of 4 to 18 years. 

Other  intangible  assets  which  are  acquired  in  business  combinations  are  carried  at  fair  values  at  the  date  of 
acquisition, and amortised on a straight-line basis over the period of the expected benefits. Customer relationships 
or customer contracts, brand, and technology have estimated useful lives of 4 to 10 years. Other intangible assets 
are stated at cost less accumulated amortisation and accumulated impairment losses.  

2.16 

Impairment of Non-Financial Assets

Goodwill  on  acquisition  of  subsidiaries  is  subject  to  annual  impairment  test  or  is  more  frequently  tested  for 
impairment if events or changes in circumstances indicate that it might be impaired. Goodwill is not amortised 
(see Note 2.15.1).

Other intangible assets of the Group, which have finite useful lives and are subject to amortisation, as well as 
property, plant and equipment and investments in subsidiaries, associates and joint ventures, are reviewed at the 
end of each reporting period to determine whether there is any indicator for impairment, or whenever events or 
changes in circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, 
the assets’ recoverable amounts are estimated. 

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash flows (cash-generating units).

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable 
amount. The recoverable amount is the higher of the asset’s fair value less costs to sell and value-in-use.  

An impairment loss for an asset, other than goodwill on acquisition of subsidiaries, is reversed if, and only if, there 
has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment 
loss was recognised.  Impairment loss on goodwill on acquisition of subsidiaries is not reversed in the subsequent 
period.

2.17 

Inventories

Inventories are stated at the lower of cost and net realisable value.  Cost is determined on the weighted average 
basis. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost 
of completion and selling expenses.

Work-in-progress  is  stated  at  cost  and  associated  profits  are  recognised  based  on  projects-in-progress,  less 
progress payments received and receivable on uncompleted information technology projects. Costs include third 
party hardware and software costs, direct labour and other direct expenses attributable to the project activity. 

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised 
as an expense immediately.

In the consolidated statement of financial position, work-in-progress is included in “Trade and other receivables”, 
and the excess of progress billings over work-in-progress is included in “Trade and other payables” as applicable.

164

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
2.18 

Property, Plant and Equipment

Property,  plant  and  equipment  is  stated  at  cost  less  accumulated  depreciation  and  accumulated  impairment 
losses,  where  applicable.  The  cost  of  self-constructed  assets  includes  the  cost  of  material,  direct  labour, 
capitalised borrowing costs and an appropriate proportion of production overheads.

Depreciation is calculated on a straight-line basis to write off the cost of the property, plant and equipment over 
its expected useful life. Property, plant and equipment under finance lease is depreciated over the shorter of the 
lease term or useful life. The estimated useful lives are as follows -

Buildings 
Transmission plant and equipment 
Switching equipment 
Other plant and equipment 

No. of years 

5 - 40 
5 - 25 
3 - 15 
2 - 20 

Other plant and equipment consist mainly of motor vehicles, office equipment, and furniture and fittings.

No depreciation is provided on freehold land, long-term leasehold land with a remaining lease period of more 
than 100 years and capital work-in-progress. Leasehold land with a remaining lease period of 100 years or less is 
depreciated in equal instalments over its remaining lease period.

In respect of capital work-in-progress, assets are depreciated from the month the asset is completed and ready 
for use.

Costs of computer software which are an integral part of the related hardware are capitalised and recognised as 
assets and included in property, plant and equipment when it is probable that the costs will generate economic 
benefits beyond one year and the costs are associated with identifiable software products which can be reliably 
measured by the Group.

The  cost  of  property,  plant  and  equipment  includes  expenditure  that  is  directly  attributable  to  the  acquisition 
of the items.  Dismantlement, removal or restoration costs are included as part of the cost if the obligation for 
dismantlement, removal or restoration is incurred as a consequence of acquiring or using the asset.  Costs may 
also  include  transfers  from  equity  of  any  gains  or  losses  on  qualifying  cash  flow  hedges  of  foreign  currency 
purchases  of  property,  plant  and  equipment.  Subsequent  expenditure  is  included  in  the  carrying  amount  of 
an  asset  when  it  is  probable  that  future  economic  benefits,  in  excess  of  the  originally  assessed  standard  of 
performance of the existing asset, will flow to the Group.

The residual values and useful lives of property, plant and equipment are reviewed, and adjusted as appropriate, 
at the end of each reporting period. 

On  disposal  of  property,  plant  and  equipment,  the  difference  between  the  disposal  proceeds  and  its  carrying 
value is taken to the income statement.

2.19 

Leases

2.19.1  Finance leases

Finance leases are those leasing agreements which effectively transfer to the Group substantially all the risks 
and benefits incidental to ownership of the leased items. Assets financed under such leases are treated as if they 
had been purchased outright at the lower of fair value and present value of the minimum lease payments and the 
corresponding leasing commitments are shown as obligations to the lessors.

165

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.19.1  Finance leases (Cont’d)

Lease payments are treated as consisting of capital repayments and interest elements. Interest is charged to the 
income statement over the period of the lease to produce a constant rate of charge on the balance of capital 
repayments outstanding.

2.19.2  Operating leases

Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are 
classified as operating leases.  Operating lease payments are recognised as expenses in the income statement 
on a straight-line basis over the period of the lease.

2.19.3  Sales of network capacity 

Sales of network capacity are accounted as finance leases where -

(i) 
(ii) 
(iii) 
(iv) 
(v) 

the purchaser’s right of use is exclusive and irrevocable;
the asset is specific and separable;
the terms of the contract are for the major part of the asset’s economic useful life;
the attributable costs or carrying value can be measured reliably; and
no significant risks are retained by the Group.

Sales of network capacity that do not meet the above criteria are accounted for as operating leases.

2.19.4  Gains or losses from sale and leaseback

Gains on sale and leaseback transactions resulting in finance leases are deferred and amortised over the lease 
term on a straight-line basis, while losses are recognised immediately in the income statement.  

Gains and losses on sale and leaseback transactions established at fair value which resulted in operating leases 
are recognised immediately in the income statement.

2.19.5  Capacity swaps

The Group may exchange network capacity with other capacity or service providers. The exchange is regarded 
as a transaction which generates revenue unless the transaction lacks commercial substance or the fair value of 
neither the capacity received nor the capacity given up is reliably measurable.    

2.20 

Revenue Recognition

Revenue for the Group is recognised based on fair value for sale of goods and services rendered, net of goods 
and services tax, rebates and discounts, and after eliminating sales within the Group. 

Revenue includes the gross income received and receivable from revenue sharing arrangements entered into with 
overseas telecommunication companies in respect of traffic exchanged. 

Revenue from subscription contract is recognised ratably over the service, maintenance or subscription period. 

For mobile device repayment plans, the consideration is allocated to its separate revenue-generating activities 
based on the best estimate of the price of each activity in the arrangement. Handset sales are accounted for in 
accordance with the sale of equipment accounting policy (see below) of the Group. As the service credits under 
the device repayment plans are provided over time for services, they are recorded as a reduction of subscription 
revenue.

For prepaid cards which have been sold, provisions for unearned revenue are made for services which have not 
been rendered as at the end of the reporting period.  Expenses directly attributable to the unearned revenue are 
deferred until the revenue is recognised.

Revenue from the sale of equipment is recognised upon the transfer of significant risks and rewards of ownership 
to the customer which generally coincides with delivery and acceptance of the equipment sold.

166

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
    
 
 
 
 
 
 
 
 
 
 
2.20 

Revenue Recognition (Cont’d)

Revenues for system and network installation and integration projects are recognised based on the percentage 
of completion of the projects using cost-to-cost basis. Revenues from the rendering of services which involve the 
procurement of computer equipment, third party software for installation and information technology professional 
services are recognised upon full completion of the projects. 

Revenue from sale of perpetual software licences and the related hardware are recognised when title passes to 
the customer, generally upon delivery.

Revenue from digital advertising services and solutions is recognised when advertising services are delivered, 
and when digital advertising impressions are delivered or click-throughs occur. Revenue from selling advertising 
space is recognised when the advertising space is filled and sold to customers.

Dividend income is recorded gross in the income statement when the right to receive payment is established.

Interest income is recognised on a time proportion basis using the effective interest method.

Rental income from operating leases is recognised on a straight-line basis over the term of the lease. 

2.21 

Employees’ Benefits

2.21.1  Defined contribution plans

Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions 
into separate entities such as the Central Provident Fund. The Group has no legal or constructive obligation to 
pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to 
employee services in the current and preceding financial years.

The Group’s contributions to the defined contribution plans are recognised in the income statement as expenses 
in the financial year to which they relate.

2.21.2  Employees’ leave entitlements

Employees’ entitlements to annual leave and long service leave are recognised when they accrue to employees.  
A  provision  is  made  for  the  estimated  liability  of  annual  leave  and  long  service  leave  as  a  result  of  services 
rendered by employees up to the end of the reporting period.

2.21.3  Share-based compensation

Performance shares and share options
The performance share plans of the Group are accounted for either as equity-settled share-based payments or 
cash-settled share-based payments. The share option plans of the subsidiaries are accounted as equity-settled 
share-based payments. 

Equity-settled share-based payments are measured at fair value at the date of grant, whereas cash-settled share-
based payments are measured at current fair value at the end of each reporting period.  The share-based payment 
expense is amortised and recognised in the income statement on a straight-line basis over the vesting period.  

At the end of each reporting period, the Group revises its estimates of the number of equity instruments that 
the participants are expected to receive based on non-market vesting conditions. The difference is charged or 
credited to the income statement, with a corresponding adjustment to equity or liability for equity-settled and 
cash-settled share-based payments respectively.

The  dilutive  effects  of  the  Singtel  performance  share  plans  are  reflected  as  additional  share  dilution  in  the 
computation of diluted earnings per share.

167

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.22 

Borrowing Costs

Borrowing  costs  include  interest,  amortisation  of  discounts  or  premiums  relating  to  borrowings,  amortisation 
of  ancillary  costs  incurred  in  arranging  borrowings,  and  finance  lease  charges.  Borrowing  costs  are  generally 
expensed  as  incurred,  except  to  the  extent  that  they  are  capitalised  if  they  are  directly  attributable  to  the 
acquisition, construction, or production of a qualifying asset.

2.23 

Customer Acquisition and Retention Costs

Customer  acquisition  and  retention  costs,  including  related  sales  and  promotion  expenses  and  activation 
commissions, are expensed as incurred.

2.24 

Pre-incorporation Expenses

Pre-incorporation expenses are expensed as incurred.

2.25 

Government Grants

Grants in recognition of specific expenses are recognised in the income statement over the periods necessary to 
match them with the relevant expenses they are intended to compensate. Grants related to depreciable assets 
are deferred and recognised in the income statement over the period in which such assets are depreciated and 
used in the projects subsidised by the grants.

2.26 

Exceptional Items

Exceptional items refer to items of income or expense within the consolidated income statement from ordinary 
activities  that  are  of  such  size,  nature  or  incidence  that  their  separate  disclosure  is  considered  necessary  to 
explain the performance for the financial year.

2.27 

Income Tax

Income tax expense comprises current and deferred tax.

The current tax is based on taxable profit for the year. Taxable profit differs from profit as reported in the income 
statement as it excludes items of income or expense that are taxable or deductible in other years and it further 
excludes items that are not taxable or tax deductible. The Group’s liability for current tax is calculated using tax 
rates (and tax laws) that have been enacted or substantively enacted in countries where the Company and its 
subsidiaries operate by, at the end of the reporting period.

Deferred taxation is provided in full, using the liability method, on all temporary differences at the end of the reporting 
period  between  the  tax  bases  of  assets  and  liabilities  and  their  carrying  amounts  in  the  financial  statements.  
However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than 
a business combination that at the time of the transaction affects neither accounting nor taxable profit/ loss, it is 
not recognised. Deferred income tax is also not recognised for goodwill which is not deductible for tax purposes. 
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying 
amount of assets and liabilities, using tax rates (and tax laws) enacted or substantively enacted in countries where 
the Company and its subsidiaries operate by, at the end of the reporting period.

168

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
2.27 

Income Tax (Cont’d)

Deferred tax liabilities are provided on all taxable temporary differences arising on investments in subsidiaries, 
associates and joint ventures, except where the timing of the reversal of the temporary difference can be controlled 
and it is probable that the temporary difference will not reverse in the foreseeable future.  

Deferred tax assets are recognised for all deductible temporary differences and carry forward of unutilised tax 
losses, to the extent that it is probable that future taxable profit will be available against which the deductible 
temporary differences and carry forward of unused losses can be utilised.

At the end of each reporting period, the Group re-assesses unrecognised deferred tax assets and the carrying 
amount of deferred tax assets. The Group recognises a previously unrecognised deferred tax asset to the extent 
that it is probable that future taxable profit will allow the deferred tax asset to be recovered. The Group conversely 
reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient future 
taxable profit will be available to allow the benefit of all or part of the deferred tax asset to be utilised.

Current and deferred tax are charged or credited directly to equity if the tax relates to items that are credited or 
charged, in the same or different period, directly to equity.

2.28 

Dividends

Interim and special dividends are recorded in the financial year in which they are declared payable.  Final dividends 
are recorded in the financial year in which the dividends are approved by the shareholders.

2.29 

Segment Reporting

An operating segment is identified as the component of the Group that is regularly reviewed by the chief operating 
decision maker in order to allocate resources to the segment and to assess its performance. 

2.30   Non-current Assets (or Disposal Groups) Held for Sale

Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of carrying 
amount and fair value less costs to sell if their carrying amounts are recovered principally through sale transactions 
rather than through continuing use.  

3. 

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

FRS 1, Presentation Of Financial Statements, requires disclosure of the judgements management has made in 
the process of applying the accounting policies that have the most impact on the amounts recognised in the 
financial  statements.  It  also  requires  disclosure  about  the  key  assumptions  concerning  the  future,  and  other 
key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a 
material adjustment to the carrying amounts of assets and liabilities within the next financial year. The estimates 
and assumptions are based on historical experience and other factors that are considered relevant.  Actual results 
may differ from these estimates.

169

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
3. 

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Cont’d)

The following presents a summary of the critical accounting estimates and judgements -

3.1 

Impairment Reviews

The accounting policies for impairment of non-financial assets are stated in Note 2.16.

During an impairment review, the Group assesses whether the carrying amount of an asset or cash-generating unit 
exceeds its recoverable amount. Recoverable amount is defined as the higher of an asset’s or cash generating 
unit’s fair value less costs to sell and its value-in-use. In making this judgement, the Group evaluates the value-
in-use  which  is  supported  by  the  net  present  value  of  future  cash  flows  derived  from  such  assets  or  cash-
generating units using cash flow projections which have been discounted at an appropriate rate. Forecasts of 
future cash flows are based on the Group’s estimates using historical, sector and industry trends, general market 
and economic conditions, changes in technology and other available information. 

Goodwill recorded by associates and joint ventures is required to be tested for impairment at least annually. The 
impairment assessment requires the exercise of significant judgement about future market conditions, including 
growth  rates  and  discount  rates  applicable  in  a  number  of  markets  where  the  associates  and  joint  ventures 
operate. 

The assumptions used by management to determine the value-in-use calculations of goodwill on acquisition of 
subsidiaries are disclosed in Note 23. The carrying values of associates and joint ventures including goodwill 
capitalised are stated in Note 21 and Note 22 respectively.  

3.2 

Impairment of Trade Receivables

The Group assesses at the end of each reporting period whether there is objective evidence that trade receivables 
have been impaired. Impairment loss is calculated based on a review of the current status of existing receivables 
and historical collections experience. Such provisions are adjusted periodically to reflect the actual and anticipated 
experience.

3.3 

Estimated Useful Lives of Property, Plant and Equipment

The Group reviews annually the estimated useful lives of property, plant and equipment based on factors such as 
business plans and strategies, expected level of usage and future technological developments. It is possible that 
future results of operations could be materially affected by changes in these estimates brought about by changes 
in the factors mentioned above. A reduction in the estimated useful lives of property, plant and equipment would 
increase the recorded depreciation and decrease the carrying value of property, plant and equipment.

3.4 

Taxation

3.4.1  Deferred tax asset

The Group reviews the carrying amount of deferred tax asset at the end of each reporting period. Deferred tax 
asset is recognised to the extent that it is probable that future taxable profit will be available against which the 
temporary differences can be utilised. This involves judgement regarding the future financial performance of the 
particular legal entity or tax group in which the deferred tax asset has been recognised. 

170

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
3. 

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Cont’d)

3.4.2 

Income taxes
The Group is subject to income taxes in numerous jurisdictions. Judgement is involved in determining the group-
wide  provision  for  income  taxes.  There  are  certain  transactions  and  computations  for  which  the  ultimate  tax 
determination  is  uncertain  during  the  ordinary  course  of  business,  including  the  tax  matter  disclosed  in  Note 
38(b). The Group recognises liabilities for expected tax issues based on estimates of whether additional taxes 
will be due. Where the final outcome of these matters is different from the amounts that were initially recognised, 
such differences will impact the income tax and deferred tax provisions in the period in which such determination 
is made.  

3.5 

Fair values of derivative financial instruments

The Group uses valuation techniques to determine the fair values of financial instruments. The valuation techniques 
used for different financial instruments are selected to reflect how the market would be expected to price the 
instruments, using inputs that reasonably reflect the risk-return factors inherent in the instruments. Depending 
upon  the  characteristics  of  the  financial  instruments,  observable  market  factors  are  available  for  use  in  most 
valuations, while others involve a greater degree of judgment and estimation.

3.6 

Share-based Payments

Equity-settled share-based payments are measured at fair value at the date of grant, whereas cash-settled share-
based payments are measured at current fair value at the end of each reporting period. In addition, the Group 
revises  the  estimated  number  of  equity  instruments  that  participants  are  expected  to  receive  based  on  non-
market vesting conditions at the end of each reporting period.

The assumptions of the valuation model used to determine fair values are set out in Note 5.3.

3.7 

Contingent Liabilities

The  Group  consults  with  its  legal  counsel  on  matters  related  to  litigation,  and  other  experts  both  within  and 
outside the Group with respect to matters in the ordinary course of business. As at 31 March 2018, the Group 
was involved in various legal proceedings where it has been vigorously defending its claims as disclosed in Note 
38.    

The  Group  also  reports  significant  contingent  liabilities  of  its  associates  and  joint  ventures.  Assessment  on 
whether the risk of loss is remote, possible or probable requires significant judgement given the complexities 
involved. The significant contingent liabilities of the Group’s associate and joint ventures have been disclosed in 
Note 39. 

3.8 

Purchase Price Allocation

The Group completed the acquisition of Turn  in April 2017. Purchase price allocation exercise requires a significant 
amount of management estimation, particularly in relation to the identification and valuation of intangible assets 
and assignment of their useful lives. The Group’s disclosure of the above is set out in Note 3(a) to the Consolidated 
Statement of Cash Flows.  

171

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
4. 

OPERATING REVENUE

Mobile communications (1)
Data and Internet (1)
Infocomm Technology (1)

Sale of equipment

Digital businesses

National telephone 

International telephone
Pay television (1)
Others (1)

Operating revenue

Operating revenue

Other income

Interest and dividend income (see Note 10)

Total revenue

Note: 
(1)  Comparatives have been reclassified to be consistent with current year.

5. 

OPERATING EXPENSES

Selling and administrative costs (1) 

Staff costs 

Other cost of sales 

Cost of equipment sold 

Traffic expenses

Repairs and maintenance

Group

2018
S$ Mil

2017
S$ Mil

 5,955.2 

 3,427.3 

 3,067.6 

 2,031.9 

 1,113.1 

 963.2 

 421.1 

 369.4 

 183.0 

 5,926.5 

 3,319.0 

 2,948.0 

 1,903.8 

 565.6 

 1,062.4 

 479.7 

 356.1 

 150.3 

 17,531.8 

 16,711.4 

 17,531.8 

 16,711.4 

 258.8 

 49.2 

 215.3 

 99.7 

 17,839.8 

 17,026.4 

Group

2018
S$ Mil

2017
S$ Mil

 2,922.5 

 2,652.4 

 2,613.3 

 2,529.6 

 1,615.8 

 367.9 

 2,921.9 

 2,523.4 

 2,115.4 

 2,415.9 

 1,575.6 

 376.8 

 12,701.5 

 11,929.0 

Note:
(1) 

Includes  mobile  and  broadband  subscriber  acquisition  and  retention  costs,  supplies  and  services,  as  well  as  rentals  of  properties  and 
mobile base stations.

172

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
5.1 

Staff Costs

Staff costs included the following -

  Contributions to defined contribution plans

  Performance share and share option expenses

  - equity-settled arrangements

  - cash-settled arrangements

5.2 

Key Management Personnel Compensation

Key management personnel compensation (1)
Executive director (2)
Other key management personnel (3) 

Directors’ remuneration (4)

Group

2018
S$ Mil

2017
S$ Mil

 252.3 

 233.9 

 32.7 

 1.9 

 33.9 

 2.0 

Group

2018
S$ Mil

2017
S$ Mil

 6.1 

 22.4 

28.5

2.5

31.0

 6.6 

 20.8 

 27.4 

 2.6 

 30.0 

Notes:
(1)  Comprise base salary, bonus, contributions to defined contribution plans and other benefits, but exclude performance share and share 

option expenses disclosed below.

(2)  The Group Chief Executive Officer, an executive director of Singtel, was awarded up to 1,712,538 (2017: 1,895,988) ordinary shares of 
Singtel pursuant to Singtel performance share plans and a one-off Special Share Award (“SSA”), subject to certain performance criteria 
including other terms and conditions being met. The performance share expense computed in accordance with FRS 102, Share-based 
Payment, was S$3.3 million (2017: S$2.4 million).

(3)  The other key management personnel of the Group comprise the Chief Executive Officers of Consumer Singapore, Consumer Australia, 
Group Enterprise, Group Digital Life and International Group, as well as the Group Chief Corporate Officer, Group Chief Financial Officer, 
Group Chief Human Resources Officer, Group Chief Information Officer and Group Chief Technology Officer.

The  other  key  management  personnel  were  awarded  up  to  4,391,498  (2017:  4,331,295)  ordinary  shares  of  Singtel  pursuant  to  Singtel 
performance share plans and a one-off SSA, subject to certain performance criteria including other terms and conditions being met. The 
performance share expense computed in accordance with FRS 102, Share-based Payment, was S$8.5 million (2017: S$5.6 million). 

(4)  Directors’ remuneration comprises the following: 

(i) 

Directors’ fees of S$2.5 million (2017: S$2.5 million), including fees paid to certain directors in their capacities as members of the  
Optus Advisory Committee and the Technology Advisory Panel, and as director of Singtel Innov8 Pte. Ltd.

(ii) 

  Car-related benefits of Chairman of S$20,446 (2017: S$21,611). 

In addition to the directors’ remuneration, Venkataraman Vishnampet Ganesan, a non-executive director of Singtel, was awarded 750,718 
share options pursuant to the Amobee Long-Term Incentive Plan in 2016, subject to certain terms and conditions being met. No similar 
share option was awarded during the financial year (2017: Nil). The share option expense computed in accordance with FRS 102, Share-
based Payment, was S$21,607 (2017: S$64,418).

173

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.3 

Share-based Payments

5.3.1  Performance share plans

With effect from 1 April 2012, Restricted Share Awards and Performance Share Awards are given to selected 
employees of Singtel and its subsidiaries. The awards are conditional upon the achievement of predetermined 
performance targets over the performance period, which is two years for the Restricted Share Awards and three 
years for the Performance Share Awards. Both awards are generally settled by delivery of Singtel shares, with the 
awards for certain senior executives to be settled by Singtel shares or cash, at the option of the recipient. 

Additionally, early vesting of the performance shares can also occur under special circumstances approved by 
the Executive Resource and Compensation Committee such as retirement, redundancy, illness and death while 
in employment.

Though the performance shares are awarded by Singtel, the respective subsidiaries bear all costs and expenses 
in any way arising out of, or connected with, the grant and vesting of the awards to their employees.

The  fair  values  of  the  performance  shares  are  estimated  using  a  Monte-Carlo  simulation  methodology  at  the 
measurement dates, which are the grant value dates for equity-settled awards, and at the end of the reporting 
period for cash-settled awards.

Restricted Share Awards 
The movements of the number of performance shares for the Restricted Share Awards during the financial year 
were as follows –

Group and Company
2018

Date of grant 

FY2015 (1)
  23 June 2014
  September 2014 to March 2015

FY2016
  17 June 2015
  September 2015 to March 2016

FY2017
  20 June 2016
  September 2016 to March 2017

FY2018
  19 June 2017
  September 2017 to March 2018

Outstanding
 as at 
 1 April 
2017 
 ‘000 

Awarded
from targets 
exceeded 
 ‘000 

 Granted 
 ‘000 

Vested
 ‘000 

Cancelled
 ‘000 

Outstanding
 as at 
31 March 
2018
 ‘000 

 2,707 
 9 

 3,679 
 30 

 5,319 
 87 

 - 
 - 

 - 
 - 

 - 
 - 

 - 
 - 

 7,701 
 314 

 - 
 - 

 (2,690)
 (9)

 (17)
 - 

 - 
 - 

 1,094 
 10 

 (2,406)
 (20)

 (180)
 - 

 2,187 
 20 

 1 
 - 

 - 
 - 

 (67)
 (67)

 (15)
 - 

 (342)
 - 

 4,911 
 20 

 (393)
 - 

 7,293 
 314 

11,831

 8,015 

 1,105 

 (5,274)

 (932)

 14,745 

Note: 
(1)  “FY2015” denotes financial year ended 31 March 2015.

174

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.3.1  Performance share plans (Cont’d)

Group and Company
2017

Date of grant 

FY2014
  21 June 2013
  September 2013 to March 2014

FY2015
  23 June 2014
  September 2014 to March 2015

FY2016
  17 June 2015
  September 2015 to March 2016

FY2017
  20 June 2016
  September 2016 to March 2017

Outstanding
 as at 
 1 April 
2016 
 ‘000 

Awarded
from targets 
exceeded 
 ‘000 

 Granted 
 ‘000 

Vested
 ‘000 

Cancelled
 ‘000 

Outstanding
 as at 
31 March 
2017
 ‘000 

 2,482 
 8 

 4,514 
 14 

 3,993 
 30 

 - 
 - 

 - 
 - 

 - 
 - 

 - 
 - 

 5,541 
 87 

 - 
 - 

 (2,441)
 (5)

 (41)
 (3)

 - 
 - 

 1,328 
 4 

 (2,921)
 (9)

 (214)
 - 

 2,707 
 9 

 2 
 - 

 - 
 - 

 (54)
 - 

 (8)
 - 

 (262)
 - 

 3,679 
 30 

 (214)
 - 

 5,319 
 87 

11,041

 5,628 

 1,334 

 (5,438)

 (734)

 11,831 

The fair values of the Restricted Share Awards and the assumptions of the fair value model for the grants were as 
follows –

Equity-settled 

17 June 2015

20 June 2016

19 June 2017

Date of grant

Fair value at grant date

S$3.79

S$3.46

S$3.34

Assumptions under Monte-Carlo Model
  Expected volatility
  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

  Risk free interest rates
   Yield of Singapore Government Securities on 

  “NA” denotes Not Applicable. 

14.8%
10.2%
36 months 
historical volatility 
preceding 
May 2015

15.6%
 NA 
36 months 
historical volatility 
preceding 
May 2016

14.3%
 NA 
36 months 
historical volatility 
preceding 
May 2017

4 June 2015

1 June 2016

 7 June 2017

175

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
5.3.1  Performance share plans (Cont’d)

Cash-settled 
2018

Date of grant

17 June 2015

20 June 2016

19 June 2017

Fair value at 31 March 2018 

S$3.37

S$3.28

S$3.10

Assumptions under Monte-Carlo Model
  Expected volatility
  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

14.4%
10.2%

14.4%
 NA 

14.4%
 NA 

36 months historical volatility 
preceding March 2018

  Risk free interest rates
   Yield of Singapore Government Securities on 

31 March 2018

31 March 2018

31 March 2018

Cash-settled 
2017

Date of grant

23 June 2014

17 June 2015

20 June 2016

Fair value at 31 March 2017 

S$3.89

S$3.83

S$3.65

Assumptions under Monte-Carlo Model
  Expected volatility
  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

14.5%
11.0%

14.5%
11.0%

14.5%
NA

36 months historical volatility 
preceding March 2017

  Risk free interest rates
   Yield of Singapore Government Securities on 

31 March 2017

31 March 2017

31 March 2017

176

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
5.3.1  Performance share plans (Cont’d)

Performance Share Awards 
The movements of the number of performance shares for the Performance Share Awards during the financial year 
were as follows –

Group and Company
2018

Date of grant 

FY2015
  23 June 2014
  September 2014 to March 2015

FY2016
  17 June 2015
  September 2015 to March 2016

FY2017
  20 June 2016
  September 2016 to March 2017

FY2018
  19 June 2017
  September 2017 to March 2018

Group and Company
2017

Date of grant 

FY2014
  21 June 2013
  September 2013 to March 2014

FY2015
  23 June 2014
  September 2014 to March 2015

FY2016
  17 June 2015
  September 2015 to March 2016

FY2017
  20 June 2016
   September 2016 to March 2017

177

Outstanding
 as at 
 1 April 
2017 
 ‘000 

 Granted 
 ‘000 

Vested
 ‘000 

Cancelled
 ‘000 

Outstanding
 as at 
31 March 
2018
 ‘000 

 7,947 
 21 

 8,976 
 157 

 9,068 
 91 

 - 
 - 

 - 
 - 

 - 
 - 

 - 
 - 

 4,804 
 156 

 (1,285)
 (3)

 (6,662)
 (18)

 - 
 - 

 - 
 - 

 - 
 - 

 - 
 - 

 (447)
 - 

 8,529 
 157 

 (417)
 - 

 8,651 
 91 

 (75)
 - 

 4,729 
 156 

26,260

4,960

(1,288)

(7,619)

22,313

Outstanding
 as at 
 1 April 
2016 
 ‘000 

 Granted 
 ‘000 

Vested
 ‘000 

Cancelled
 ‘000 

Outstanding
 as at 
31 March 
2017
 ‘000 

8,313
15

 8,169 
 21 

 9,221 
 157 

 - 
 - 

 - 
 - 

 - 
 - 

 - 
 - 

 9,133 
 91 

(1,215)
(2)

(7,098)
 (13)

 - 
 - 

 - 
 - 

 - 
 - 

 - 
 - 

 (222)
 - 

 7,947 
 21 

 (245)
 - 

 8,976 
 157 

 (65)
 - 

 9,068 
 91 

25,896

9,224

(1,217)

(7,643)

26,260

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.3.1  Performance share plans (Cont’d)

The fair values of the Performance Share Awards and the assumptions of the fair value model for the grants were 
as follows –

Equity-settled 

17 June 2015

20 June 2016

19 June 2017

Date of grant

Fair value at grant date 

S$1.17

S$1.81

S$1.28

Assumptions under Monte-Carlo Model
  Expected volatility
  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

14.8%
10.2%
36 months 
historical volatility 
preceding
May 2015

15.6%
 NA 
36 months 
historical volatility 
preceding
May 2016

14.3%
 NA 
36 months 
historical volatility 
preceding
May 2017

  Risk free interest rates
   Yield of Singapore Government Securities on 

4 June 2015

1  June 2016

7 June 2017

Cash-settled 
2018

Date of grant

17 June 2015

20 June 2016

19 June 2017

Fair value at 31 March 2018 

 - 

S$0.91

S$0.80

Assumptions under Monte-Carlo Model
  Expected volatility
  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

14.4%
10.2%

14.4%
NA

14.4%
NA

36 months historical volatility 
preceding March 2018

  Risk free interest rates
   Yield of Singapore Government Securities on 

31 March 2018

31 March 2018

31 March 2018

178

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
5.3.1  Performance share plans (Cont’d)

Cash-settled 
2017

Date of grant

23 June 2014

17 June 2015

20 June 2016

Fair value at 31 March 2017 

S$0.63

S$0.53

S$2.03

Assumptions under Monte-Carlo Model
  Expected volatility
  Singtel
  MSCI Asia Pacific Telco Index
  MSCI Asia Pacific Telco Component Stocks

14.5%
11.0%

14.5%
11.0%

14.5%
NA

36 months historical volatility 
preceding March 2017

  Risk free interest rates
   Yield of Singapore Government Securities on 

31 March 2017

31 March 2017

31 March 2017

5.3.2  Amobee’s share options - equity-settled arrangement

In April 2015, Amobee Group Pte. Ltd. (“Amobee”), a wholly-owned subsidiary of the Company, implemented 
the 2015 Long-Term Incentive Plan (“Amobee LTI Plan”). Selected employees (including executive directors) and 
non-executive directors of Amobee group are granted options to purchase ordinary shares of Amobee. 

Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of Amobee on the 
date  of  grant.  Options  for  employees  are  scheduled  to  be  fully  vested  in  either  3  years  or  3.5  years  from  the 
vesting commencement date. 

The grant dates, exercise prices and fair values of the share options were as follows –

Equity-settled 
Date of grant

For employees
13 April 2015 
14 October 2015
20 January 2016, 10 May 2016, 24 August 2016, 25 January 2017
23 June 2016
19 July 2017, 18 August 2017, 12 September 2017, 25 January 2018

For non-executive directors 
14 October 2015

Exercise price 
US$

Fair value at grant/
repriced date 
US$

0.79
0.54 to 0.79
0.54
0.54
0.54

0.224 to 0.261
0.217 to 0.287
0.287
0.273 to 0.287
0.260 to 0.268

0.54

0.203

The terms of the options granted to employees and non-executive directors are 10 years and 5 years from the 
date of grant respectively. 

The fair values for the share options granted were estimated using the Black-Scholes pricing model.

From  1  April  2017  to  31  March  2018,  options  in  respect  of  an  aggregate  of  43.8  million  of  ordinary  shares  in 
Amobee have been granted to the employees and non-executive directors of Amobee and/or its subsidiaries. As 
at 31 March 2018, options in respect of an aggregate of 63.1 million of ordinary shares in Amobee are outstanding.

179

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
5.3.3 

Trustwave’s share options - equity-settled arrangement
In December 2015, Trustwave Holdings, Inc. (“Trustwave”), a 98%-owned subsidiary of the Company, implemented 
the Stock Option Incentive Plan (“Trustwave ESOP’’). Selected employees (including executive directors) and 
non-executive directors of Trustwave and/or its subsidiaries are granted options to purchase common stock of 
Trustwave. 

Options are exercisable at a price no less than 100% of the fair value of the common stock of Trustwave on the 
date of grant, and are scheduled to be fully vested 4 years from the vesting commencement date. 

The grant dates, exercise prices and fair values of the share options were as follows –

Equity-settled 
Date of grant

1 December 2015 
22 January 2016
19 May 2016
12 September 2016
20 January 2017
15 March 2018

Exercise price 
US$

16.79
16.79
16.79
16.79
16.24
15.37

Fair value at 
grant date 
US$

6.57
6.28
6.16 to 6.27
6.03 to 6.10
5.93 to 6.57
6.71 to 6.92

The term of each option granted is 10 years from the date of grant. 

The fair values for the share options granted were estimated using the Black-Scholes pricing model. 

From  1  April  2017  to  31  March  2018,  options  in  respect  of  an  aggregate  of  0.4  million  of  common  stock  in 
Trustwave have been granted. As at 31 March 2018, options in respect of an aggregate of 2.4 million of common 
stock in Trustwave are outstanding.

5.3.4  HOOQ’s share options - equity-settled arrangement

In December 2015, HOOQ Digital Pte. Ltd. (“HOOQ”), a 65%-owned subsidiary of the Company, implemented 
the  HOOQ  Digital  Employee  Share  Option  Scheme  (the  “Scheme’’).  Selected  employees  (including  executive 
directors) of HOOQ and/or its subsidiaries are granted options to purchase ordinary shares of HOOQ. 

Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of HOOQ on the date 
of grant, and are scheduled to be fully vested 4 years from the vesting commencement date. 

The grant dates, exercise prices and fair values of the share options were as follows –

Equity-settled 
Date of grant

16 May 2016 
24 April 2017
2 May 2017
31 July 2017
8 September 2017
23 October 2017
10 January 2018

The term of each option granted is 10 years from the date of grant. 

Exercise price 
US$

Fair value at 
grant date 
US$

0.07
0.07
0.07
0.07
0.07
0.07
0.07

0.0445 to 0.0463
0.0301 to 0.0315
0.0292 to 0.0313
0.0313 to 0.0315
0.0296 to 0.0298
0.0309 to 0.0320
0.0316 to 0.0318

180

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.3.4  HOOQ’s share options - equity-settled arrangement (Cont’d)

The fair values for the share options granted were estimated using the Black-Scholes pricing model. 

From  1  April  2017  to  31  March  2018,  options  in  respect  of  an  aggregate  of  14.0  million  of  ordinary  shares  in 
HOOQ have been granted. As at 31 March 2018, options in respect of an aggregate of 42.8 million of ordinary 
shares in HOOQ are outstanding. 

5.4 

Structured Entity

The Trust’s purpose is to purchase the Company’s shares from the open market for delivery to the recipients upon 
vesting of the share-based payments awards.  

As at the end of the reporting period, the Trust held the following assets -

Cost of Singtel shares, net of vesting

Cash at bank

Group

Company

2018
S$ Mil

 29.1 

 0.6 

 29.7 

2017
S$ Mil

 29.0 

 0.4 

 29.4 

2018
S$ Mil

 27.2 

 0.6 

 27.8 

The details of Singtel shares held by the Trust were as follows –

Number of shares

Amount

Group

Balance as at 1 April
Purchase of Singtel shares
Vesting of shares

2018
‘000

 7,404 
 4,255 
 (4,046)

2017
‘000

 6,924 
 4,622 
 (4,142)

Balance as at 31 March

 7,613 

 7,404 

2018
S$ Mil

 29.0 
 15.9 
 (15.8)

 29.1 

2017
S$ Mil

 27.0 

 0.4 

 27.4 

2017
S$ Mil

 26.8 
 18.2 
 (16.0)

 29.0 

Upon consolidation of the Trust in the consolidated financial statements, the weighted average cost of vested 
Singtel shares is taken to ‘Capital Reserve’ whereas the weighted average cost of unvested shares is taken to 
‘Treasury Shares’ within equity. See Note 2.3. 

181

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.5 

Other Operating Expense Items

Operating expenses included the following -

  Auditors’ remuneration
  - Deloitte & Touche LLP, Singapore 
  - Deloitte Touche Tohmatsu, Australia
  - Other Deloitte & Touche offices

  Non-audit fees paid to 
  - Deloitte & Touche LLP, Singapore (1)
  - Deloitte Touche Tohmatsu, Australia (1)
  - Other Deloitte & Touche offices

  Impairment of trade receivables
  Allowance for inventory obsolescence 
  Operating lease payments for properties and mobile base stations

Group

2018
S$ Mil

2017
S$ Mil

 1.5 
 1.2 
 2.1 

 0.3 
 0.3 
 0.2 

 128.0 
 7.1 
 470.7 

 1.5 
 1.2 
 1.7 

 0.4 
 0.3 
 0.1 

 139.1 
 1.6 
 447.8 

Note:
(1)  The non-audit fees for the current financial year ended 31 March 2018 included S$0.2 million (2017: S$0.2 million) and S$0.3 million 
(2017: S$0.3 million) paid to Deloitte & Touche LLP, Singapore, and Deloitte Touche Tohmatsu, Australia, respectively in respect of tax 
services, certification and review for regulatory purposes.     

The  Audit  Committee  had  undertaken  a  review  of  the  non-audit  services  provided  by  the  auditors,  Deloitte  & 
Touche LLP, and in the opinion of the Audit Committee, these services did not affect the independence of the 
auditors.

6. 

OTHER INCOME

Other income included the following items - 

Rental income
Net gains on disposal of property, plant and equipment
Net foreign exchange losses 

Group

2017
S$ Mil

 3.3 
 3.4 
 (6.2)

2018
S$ Mil

 3.3 
 4.3 
 (9.1)

182

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
   
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
7. 

DEPRECIATION AND AMORTISATION

Depreciation of property, plant and equipment (1)
Amortisation of intangible assets
Amortisation of deferred gain on sale of a joint venture

Group

2018
S$ Mil

2017
S$ Mil

 2,041.1 
 300.5 
 (1.5)

 1,959.9 
 282.1 
 (3.1)

 2,340.1 

 2,238.9 

Note:
(1)  Optus has revised the useful lives of certain network assets from 1 April 2017 as part of its periodic review. The revision has resulted in 

lower depreciation of S$49 million (A$48 million) in the current financial year ended 31 March 2018.  

8. 

EXCEPTIONAL ITEMS

Exceptional gains
  Gain on disposal of an associate
  Disputes settlement
  Gain on sale of AFS investments
  Gain on disposal of a joint venture
  Reversal of impairment on AFS investments
  Gain on dilution of interests in associates and joint ventures 

Exceptional losses
  Impairment of other non-current assets
  Staff restructuring costs
  Provision for contingent claims and other charges
  Impairment of an associate
  Loss on sale of AFS investments
  Impairment of AFS investments

Group

2018
S$ Mil

2017
S$ Mil

 2,030.9 
 54.8 
 45.7 
 6.5 
 0.2 
 -  
 2,138.1 

 (77.3)
 (57.7)
 (57.1)
 (5.0)
 (0.6)
 -  
 (197.7)

 1,940.4 

 -  
 -  
 11.5 
 -  
 4.8 
 33.3 
 49.6 

 (11.7)
 (38.3)
 -  
 -  
 (0.2)
 (0.6)
 (50.8)

 (1.2)

183

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
  
 
 
 
 
 
 
 
 
 
     
  
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
9. 

SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES

Share of ordinary results 
  - joint ventures (1)
  - associates

Group

2018
S$ Mil

2017
S$ Mil

 2,213.3 
 240.3 
 2,453.6 

 2,638.0 
 247.8 
 2,885.8 

Share of net exceptional losses of associates and joint ventures (post-tax) (1)    

 (26.8)

 (30.7)

Share of tax of ordinary results
  - joint ventures (1)
  - associates

 (602.0)
 (38.1)

 (640.1)

 (793.7)
 (44.1)

 (837.8)

 1,786.7 

 2,017.3 

Note: 
(1)  AIS’ 3G/4G handset subsidy costs in the previous financial year has been reclassified from share of exceptional items to share of ordinary 

results of joint ventures to be consistent with current year.

10. 

INTEREST AND INVESTMENT INCOME (NET) 

Interest income from

  - bank deposits 
  - others

Dividends from joint ventures
Gross dividends from AFS investments

Other foreign exchange (losses)/ gains 
Other fair value gains
Fair value gains/ (losses) on fair value hedges 
  - hedged items 
  - hedging instruments

Fair value gains/ (losses) on cash flow hedges 
  - hedged items 
  - hedging instruments

Group

2018
S$ Mil

2017
S$ Mil

 7.6 
 9.0 
 16.6 

 30.3 
 2.3 

 49.2 

 (11.1)
 7.4 

 114.3 
 (114.2)
 0.1 

 2.1 
 (2.1)
 -  

 5.8 
 31.6 
 37.4 

 60.9 
 1.4 

 99.7 

 8.1 
 0.5 

 57.8 
 (51.3)
 6.5 

 (1.5)
 1.5 
 -  

 45.6 

 114.8 

184

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
     
  
   
 
 
 
 
 
 
 
 
   
 
   
 
 
 
 
   
 
   
 
 
 
 
 
     
  
   
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
11. 

FINANCE COSTS

Interest expense on

  - bonds

  - bank loans

Financing related costs

Effects of hedging using interest rate swaps

Unwinding of discounts (including adjustments)

12. 

TAXATION

12.1 

Tax Expense

Current income tax

  - Singapore

  - Overseas

Deferred tax credit

Group

2018
S$ Mil

2017
S$ Mil

 302.8 

 49.7 

 352.5 

 27.0 

 6.8 

 3.9 

 305.5 

 36.1 

 341.6 

 28.7 

 (0.2)

 4.2 

390.2

374.3

Group

2018
S$ Mil

2017
S$ Mil

 237.6 

 318.4 

 556.0 

 (51.5)

 235.7 

 299.4 

 535.1 

 (3.9)

Tax expense attributable to current year’s profit

 504.5 

 531.2 

Adjustments in respect of prior years (1) -

     Current income tax 

     Deferred income tax 

     Withholding and dividend distribution taxes on dividend 

income from associates and joint ventures

Note:
(1)   This included certain tax credits upon finalisation of earlier years’ tax assessments.

 (17.9)

 36.5 

 178.1 

 701.2 

 (34.8)

 26.7 

 161.3 

 684.4 

185

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
     
  
   
 
 
 
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
     
 
   
 
   
 
 
 
 
 
12.1 

Tax Expense (Cont’d)

The tax expense on profits was different from the amount that would arise using the Singapore standard rate of 
income tax due to the following –

Profit before tax

Less: Share of results of associates and joint ventures

Group

2018
S$ Mil

2017
S$ Mil

 6,131.5 

 (1,786.7)

 4,344.8 

 4,515.4 

 (2,017.3)

 2,498.1 

Tax calculated at tax rate of 17 per cent (2017: 17 per cent)

 738.6 

 424.7 

Effects of -

Different tax rates of other countries

Income not subject to tax

Expenses not deductible for tax purposes

Deferred tax asset not recognised

Change in tax rate of other country

Others

 78.7 

 (342.7)

 33.7 

 39.6 

 (27.5)

 (15.9)

 49.6 

 (7.4)

 30.6 

 47.5 

 -  

 (13.8)

Tax expense attributable to current year’s profit

 504.5 

 531.2 

12.2 

Deferred Taxes

The  movements  of  the  deferred  tax  assets  and  liabilities  (prior  to  offsetting  of  balances  within  the  same  tax 
jurisdiction) during the financial year were as follows -

Group - 2018
Deferred tax assets

TWDV (1)
in excess of
NBV (2) of    
depreciable
assets
S$ Mil

Tax losses
and
unutilised
capital
allowances
S$ Mil

Provisions
S$ Mil

Others
S$ Mil

Total
S$ Mil

Balance as at 1 April 2017

Credited/ (Charged) to income statement 

Charged to other comprehensive income 

Transfer from current tax

Translation differences

 40.3 

 5.2 

 -  

 1.0 

 (3.4)

 137.8 

 (53.1)

 -  

 -  

 21.7 

 -  

 -  

 -  

 469.6 

 (213.7)

 (8.4)

 -  

 (5.5)

 1.1 

 (10.3)

 669.4 

 (261.6)

 (8.4)

 1.0 

 (18.1)

Balance as at 31 March 2018

 43.1 

 79.2 

 22.8 

 237.2 

 382.3 

186

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12.2 

Deferred Taxes (Cont’d)

Group - 2018
Deferred tax liabilities

Accelerated
tax 
depreciation
S$ Mil

Offshore
interest and
dividend not
remitted
S$ Mil

Balance as at 1 April 2017

Acquisition of a subsidiary

(Charged)/ Credited to income statement   

Transfer to current tax 

Translation differences 

Balance as at 31 March 2018

 (457.8)

 -  

 (13.9)

 0.5 

 0.3 

 (470.9)

 (5.1)

 -  

 (0.1)

 -  

 -  

 (5.2)

Others
S$ Mil

 (123.3)

 (21.4)

 73.4 

 1.3 

 3.5 

Total
S$ Mil

 (586.2)

 (21.4)

 59.4 

 1.8 

 3.8 

 (66.5)

 (542.6)

Group - 2017
Deferred tax assets

TWDV (1) in
excess of
NBV (2) of
depreciable
assets
S$ Mil

Tax losses
and
unutilised
capital
allowances
S$ Mil

Provisions
S$ Mil

Others
S$ Mil

Total
S$ Mil

Balance as at 1 April 2016

(Charged)/ Credited to income statement 

Credited to other comprehensive income 

Transfer (to)/ from current tax

Translation differences

 47.0 

 (8.2)

 -  

 (0.6)

 2.1 

 124.9 

 8.5 

 -  

 -  

 4.4 

 23.4 

 (2.8)

 -  

 0.1 

 1.0 

 507.1 

 (45.6)

 1.3 

 0.2 

 6.6 

 702.4 

 (48.1)

 1.3 

 (0.3)

 14.1 

Balance as at 31 March 2017

 40.3 

 137.8 

 21.7 

 469.6 

 669.4 

Group - 2017
Deferred tax liabilities

Accelerated
tax 
depreciation
S$ Mil

Offshore
interest and
dividend not
remitted
S$ Mil

Others
S$ Mil

Total
S$ Mil

Balance as at 1 April 2016

(Charged)/ Credited to income statement   

Transfer from current tax 

Translation differences 

Balance as at 31 March 2017

 (444.7)

 (13.0)

 (0.1)

 -  

 (457.8)

 (5.3)

 0.2 

 -  

 -  

 (145.4)

 (595.4)

 26.0 

 (1.5)

 (2.4)

 13.2 

 (1.6)

 (2.4)

 (5.1)

 (123.3)

 (586.2)

187

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12.2 

Deferred Taxes (Cont’d)

Company - 2018
Deferred tax assets

Balance as at 1 April 2017

Credited to income statement 

Balance as at 31 March 2018

Company - 2018
Deferred tax liabilities

Balance as at 1 April 2017

Charged to income statement

Balance as at 31 March 2018

Company - 2017
Deferred tax assets

Balance as at 1 April 2016

Charged to income statement 

Balance as at 31 March 2017

Company - 2017
Deferred tax liabilities

Balance as at 1 April 2016

Charged to income statement

Balance as at 31 March 2017

Notes:
(1)   TWDV – Tax written down value
(2)   NBV – Net book value

Provisions
S$ Mil

 0.3 

 0.2 

 0.5 

Others
S$ Mil

 2.8 

 8.2 

 11.0 

Accelerated
tax depreciation
S$ Mil

 (285.3)

 (1.8)

 (287.1)

Provisions
S$ Mil

Others
S$ Mil

 0.4 

 (0.1)

 0.3 

 3.3 

 (0.5)

 2.8 

Accelerated
tax depreciation
S$ Mil

 (274.2)

 (11.1)

 (285.3)

Total
S$ Mil

 3.1 

 8.4 

 11.5 

Total
S$ Mil

 (285.3)

 (1.8)

 (287.1)

Total
S$ Mil

 3.7 

 (0.6)

 3.1 

Total
S$ Mil

 (274.2)

 (11.1)

 (285.3)

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set-off current tax assets 
against current tax liabilities, and when deferred income taxes relate to the same fiscal authority.  

188

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12.2 

Deferred Taxes (Cont’d)

The amounts, determined after appropriate offsetting, are shown in the statements of financial position as follows -

Deferred tax assets

Deferred tax liabilities

Group

Company

2018
S$ Mil

 360.1 

 (520.4)

 (160.3)

2017
S$ Mil

 657.8 

 (574.6)

2018
S$ Mil

2017
S$ Mil

 -  

 -  

 (275.6)

 (282.2)

 83.2 

 (275.6)

 (282.2)

Deferred tax assets are recognised to the extent that realisation of the related tax benefits through future taxable 
profits is probable.

As at 31 March 2018, the subsidiaries of the Group had estimated unutilised income tax losses of approximately 
S$1.35 billion (31 March 2017: $1.07 billion), unutilised investment allowances of S$48 million (31 March 2017: 
S$50 million), unutilised capital tax losses of S$91 million (31 March 2017: S$97 million) and unabsorbed capital 
allowances of approximately S$10 million (31 March 2017: S$8.7 million).  

These unutilised income tax losses and investment allowances, and unabsorbed capital allowances are available 
for set-off against future taxable profits, subject to the agreement of the relevant tax authorities and compliance 
with certain provisions of the income tax regulations of the respective countries in which the subsidiaries operate. 
The unutilised capital tax losses are available for set-off against future capital gains of a similar nature subject to 
compliance with certain statutory tests in Australia.

As at the end of the reporting period, the potential tax benefits arising from the following items were not recognised 
in the financial statements due to uncertainty on their recoverability –

Unutilised income tax losses and investment allowances,

   and unabsorbed capital allowances

Unutilised capital tax losses

Group

2018
S$ Mil

2017
S$ Mil

 1,405.1 

 90.9 

 1,132.4 

 96.5 

189

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
13. 

EARNINGS PER SHARE

Weighted average number of ordinary shares in issue for
  calculation of basic earnings per share (1)

Adjustment for dilutive effects of performance share plans

Weighted average number of ordinary shares for calculation of

Group

2018
‘000

2017
‘000

 16,322,581 

 16,082,136 

 21,748 

 27,115 

  diluted earnings per share

 16,344,329 

 16,109,251 

Note:
(1)  Adjusted to exclude the number of performance shares held by the Trust and the Company.

‘Basic earnings per share’ is calculated by dividing the Group’s profit attributable to shareholders of the Company 
by the weighted average number of ordinary shares in issue during the financial year.

For ‘Diluted earnings per share’, the weighted average number of ordinary shares in issue included the number of 
additional shares outstanding if the potential dilutive ordinary shares arising from the performance shares granted 
by the Group were issued.  Adjustment is made to earnings for the dilutive effect arising from the associates and 
joint ventures’ dilutive shares.

14. 

RELATED PARTY TRANSACTIONS

In addition to the related party information disclosed elsewhere in the financial statements, the Group had the 
following significant transactions and balances with related parties – 

Income

Subsidiaries of ultimate holding company 

Telecommunications

Rental and maintenance

Associates

Telecommunications

Interest on loan 

Joint ventures

Telecommunications

Group

2018
S$ Mil

2017
S$ Mil

 93.7 

 29.0 

 19.8 

 8.2 

 91.8 

 29.3 

 17.2 

 27.6 

 45.8 

 35.3 

190

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
  
   
 
 
 
 
 
 
14. 

RELATED PARTY TRANSACTIONS (Cont’d)

Expenses

Subsidiaries of ultimate holding company 

Telecommunications

Utilities

Associates

Telecommunications

Postal

Rental

Joint ventures

Telecommunications

Transmission capacity

Group

2018
S$ Mil

2017
S$ Mil

 34.6 

 68.7 

 144.0 

 7.9 

 6.3 

 32.0 

 4.6 

 43.9 

 72.0 

 146.2 

 8.8 

 3.5 

 37.0 

 27.0 

Acquisition of shares in associate and joint ventures

 539.4 

 2,471.3 

Proceeds from sale of property, plant and equipment

 137.8 

 32.0

Proceeds from disposal of a joint venture

Proceeds from disposal of AFS investments

Issue of new shares

Due from subsidiaries of ultimate holding company

Due to subsidiaries of ultimate holding company

 15.0 

 27.0 

 -  

 -  

 -  

 1,605.1 

 28.0 

 1.6 

 23.8 

 5.2 

All the above transactions were on normal commercial terms and conditions and market rates.

Please refer to Note 5.2 for information on key management personnel compensation.

191

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
15. 

CASH AND CASH EQUIVALENTS

Fixed deposits

Cash and bank balances

Group

Company

2018
S$ Mil

 122.7 

 402.2 

 524.9 

2017
S$ Mil

 164.1 

 369.7 

 533.8 

2018
S$ Mil

 28.0 

 64.0 

 92.0 

The carrying amounts of the cash and cash equivalents approximate their fair values.

Cash and cash equivalents denominated in the non-functional currencies of the Group were as follows –

USD

AUD

HKD

The maturities of the fixed deposits were as follows -

Group

Company

2018
S$ Mil

 87.5 

 14.8 

 15.6 

2017
S$ Mil

 140.7 

 16.9 

 8.0 

2018
S$ Mil

 30.3 

 0.3 

 0.3 

Less than three months

Over three months

Group

Company

2018
S$ Mil

 105.7 

 17.0 

 122.7 

2017
S$ Mil

 147.8 

 16.3 

 164.1 

2018
S$ Mil

 28.0 

 -  

 28.0 

2017
S$ Mil

 27.6 

 61.6 

 89.2 

2017
S$ Mil

 34.6 

 8.1 

 0.3 

2017
S$ Mil

 27.6 

 -  

 27.6 

As  at  31  March  2018,  the  weighted  average  effective  interest  rate  of  the  fixed  deposits  of  the  Group  and  the 
Company were 1.6 per cent (31 March 2017: 1.3 per cent) per annum and 1.7 per cent (31 March 2017: 1.1 per 
cent) per annum respectively.

The exposure of cash and cash equivalents to interest rate risks is disclosed in Note 34.3.

192

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
16. 

TRADE AND OTHER RECEIVABLES

Current

Trade receivables (1)

Less: Allowance for impairment of

             trade receivables

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

 4,044.1 

 3,826.6 

 487.6 

 492.3 

 (241.5)

 3,802.6 

 (225.2)

 3,601.4 

Other receivables

 434.2 

 525.0 

Loans to subsidiaries

Less: Allowance for impairment of

            loans due 

Amount due from subsidiaries

 - trade

 - non-trade

Less: Allowance for impairment of

            amount due

Amount due from associates 

  and joint ventures

 - trade

 - non-trade

Prepayments

Interest receivable

Others

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 16.6 

 140.9 

 157.5 

 552.3 

 73.4 

 15.4 

 13.6 

 155.2 

 168.8 

 540.2 

 74.9 

 13.9 

 (96.4)

 391.2 

 20.6 

 (90.7)

 401.6 

 18.9 

 120.6 

 127.6 

 (9.3)

 111.3 

 722.3 

 1,029.0 

 (45.4)

 1,705.9 

 1.9 

 4.0 

 5.9 

 57.6 

 31.4 

 -  

 (12.7)

 114.9 

 717.0 

 363.3 

 (45.4)

 1,034.9 

 4.4 

 4.0 

 8.4 

 60.2 

 34.4 

 -  

 5,035.4 

 4,924.2 

 2,323.9 

 1,673.3 

193

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16. 

TRADE AND OTHER RECEIVABLES (Cont’d)

Non-current

Trade receivables (1)

Prepayments

Tax recoverable from Australian  
  Taxation Office (2)

Other receivables

Group

Company

2018
S$ Mil

 394.4 

 198.3 

 134.9 

 19.6 

 747.2 

2017
S$ Mil

 417.0 

 194.5 

 143.2 

 14.8 

 769.5 

2018
S$ Mil

 -  

 143.7 

 -  

 -  

2017
S$ Mil

 -  

 155.1 

 -  

 -  

 143.7 

 155.1 

Notes:
(1) 

This included accrued receivables under device repayment plans and other handset repayment plans where billings are made monthly 
over 24 months.

(2) 

The Group paid A$134 million to the Australian Taxation Office (“ATO”) for amended tax assessments received in respect of the acquisition 
financing of Optus in the previous financial year. This payment has been recorded as a tax recoverable from the ATO pending outcome of 
its objections to the ATO (see Note 38(b)). 

Trade receivables are non-interest bearing and are generally on 14-day to 30-day terms, while balances due from 
carriers are on 60-day terms.

As at 31 March 2018, the effective interest rate of an amount due from a subsidiary of S$824.5 million (31 March 
2017: S$153.3 million) was 0.12 per cent (31 March 2017: 0.01 per cent) per annum. The loans to subsidiaries and 
amounts due from other subsidiaries, associates and joint ventures were unsecured, interest-free and repayable 
on demand. 

An  amount  of  S$18.8  million  (31  March  2017:  S$41.0  million)  under  current  other  receivables  of  the  Group  is 
guaranteed by a third party and repayable by 31 March 2019. The weighted average effective interest rate was nil 
(31 March 2017: 5.6%). 

The maximum exposure to credit risk for trade receivables by customer type was as follows -

Individuals

Corporations and others

Group

Company

2018
S$ Mil

2017
S$ Mil

 2,043.8 

 2,153.2 

 2,049.5 

 1,968.9 

 4,197.0 

 4,018.4 

2018
S$ Mil

 141.8 

 249.4 

 391.2 

2017
S$ Mil

 145.9 

 255.7 

 401.6 

194

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
16. 

TRADE AND OTHER RECEIVABLES (Cont’d)

The age analysis of trade receivables (before allowance for impairment) was as follows -

Less than 60 days 

61 to 120 days

More than 120 days 

Group

Company

2018
S$ Mil

2017
S$ Mil

 3,913.8 

 3,818.8 

 198.7 

 326.0 

 114.4 

 310.4 

 4,438.5 

 4,243.6 

2018
S$ Mil

 327.4 

 45.1 

 115.1 

 487.6 

The movement in the allowance for impairment of trade receivables was as follows - 

Group

Company

Balance as at 1 April 

Acquisition of a subsidiary 

Allowance for impairment 

Utilisation of allowance for impairment

Write-back of allowance for impairment 

Translation differences

2018
S$ Mil

 225.2 

 2.2 

 133.4 

 (103.9)

 (5.4)

 (10.0)

2017
S$ Mil

 245.9 

 -  

 142.0 

 (166.7)

 (2.9)

 6.9 

Balance as at 31 March

 241.5 

 225.2 

17. 

INVENTORIES 

2018
S$ Mil

 90.7 

 -  

 35.3 

 (29.3)

 (0.3)

 -  

 96.4 

Group

Company

2018
S$ Mil

2017
S$ Mil

Equipment held for resale

 374.1 

 320.1 

Maintenance and capital works’    
  inventories

 23.3 

 32.1 

 397.4 

 352.2 

2018
S$ Mil

 0.1 

 21.7 

 21.8 

2017
S$ Mil

 332.9 

 32.4 

 127.0 

 492.3 

2017
S$ Mil

 84.0 

 -  

 40.0 

 (33.3)

 -  

 -  

 90.7 

2017
S$ Mil

 0.2 

 23.6 

 23.8 

195

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
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196

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18. 

PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Property, plant and equipment included the following -

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

Net book value of property, plant and
  equipment

Assets acquired under finance leases

Staff costs capitalised 

 37.0 

 204.6 

 78.6 

 235.4 

 10.8 

 31.2 

 29.2 

 35.6 

19. 

INTANGIBLE ASSETS

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

Goodwill on acquisition of subsidiaries

 11,372.2 

 11,164.6 

Telecommunications and spectrum  
  licences

Technology and brand

Customer relationships and others

 2,355.5 

 1,565.5 

 204.6 

 36.8 

 302.5 

 40.2 

 13,969.1 

 13,072.8 

19.1 

Goodwill on Acquisition of Subsidiaries

Balance as at 1 April 

Acquisition of a subsidiary

Translation differences

Balance as at 31 March

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

Group

2018
S$ Mil

2017
S$ Mil

 11,164.6 

 11,090.3 

 347.5 

 (139.9)

 -  

 74.3 

 11,372.2 

 11,164.6 

200

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19.2 

Telecommunications and Spectrum Licences

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

 -  

 -  

 -  

 -  

 -  

 8.4 

 (8.4)

 -  

 -  

2018
S$ Mil

 302.5 

 53.3 

 (58.5)

 (75.8)

 -  

 (16.9)

 0.3 

 -  

 (0.3)

 -  

 -  

 8.4 

 (8.4)

 -  

 -  

2017
S$ Mil

 374.1 

 -  

 (71.5)

 (9.3)

 (4.7)

 13.9 

Group

 204.6 

 302.5 

 586.3 

 (288.6)

 (93.1)

 550.4 

 (230.4)

 (17.5)

 204.6 

 302.5 

Balance as at 1 April 

Additions

Amortisation for the year

Translation differences

 1,565.5 

 1,118.3 

 (221.6)

 (106.7)

 1,439.8 

 271.8 

 (192.2)

 46.1 

Balance as at 31 March

 2,355.5 

 1,565.5 

Cost

Accumulated amortisation

Accumulated impairment

 3,817.1 

 (1,455.4)

 (6.2)

 2,876.4 

 (1,304.7)

 (6.2)

Net book value as at 31 March

 2,355.5 

 1,565.5 

19.3 

Technology and Brand

Balance as at 1 April 

Acquisition of a subsidiary

Amortisation for the year

Impairment charge for the year 

Adjustments

Translation differences

Balance as at 31 March

Cost

Accumulated amortisation

Accumulated impairment 

Net book value as at 31 March

201

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19.4 

Customer Relationships and Others

Balance as at 1 April

Additions

Amortisation for the year

Reclassifications/ Adjustments

Translation differences

Balance as at 31 March

Cost

Accumulated amortisation

Net book value as at 31 March

20. 

SUBSIDIARIES

Unquoted equity shares, at cost

Shareholders’ advances 

Deemed investment in a subsidiary 

Less: Allowance for impairment losses

2018
S$ Mil

 40.2 

 17.9 

 (20.4)

 -  

 (0.9)

 36.8 

 135.8 

 (99.0)

 36.8 

Group

2017
S$ Mil

 64.2 

 2.9 

 (18.4)

 (9.6)

 1.1 

 40.2 

 134.6 

 (94.4)

 40.2 

Company

2018
S$ Mil

2017
S$ Mil

 13,676.4 

 5,733.0 

 32.5 

 11,001.2 

 6,423.3 

 32.5 

 19,441.9 

 17,457.0 

 (16.0)

 (16.0)

 19,425.9 

 17,441.0 

The advances given to subsidiaries were interest-free and unsecured with settlement neither planned nor likely to 
occur in the foreseeable future. An advance of S$678.3 million with an effective interest rate of 1.0 per cent per 
annum was repaid during the year. 

The deemed investment in a subsidiary, Singtel Group Treasury Pte. Ltd. (“SGT”), arose from financial guarantees 
provided by the Company for loans drawn down by SGT prior to 1 April 2010. 

The significant subsidiaries of the Group are set out in Note 42.1 to Note 42.3.

202

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21. 

ASSOCIATES

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

Quoted equity shares, at cost

 1,733.4 

 1,589.9 

 24.7 

 77.2 

 -  

 742.6 

 1.7 

 -  

 -  

 1,810.6 

 2,334.2 

 24.7 

 29.4 

 (28.3)

 141.0 

 104.4 

 274.8 

 (5.0)

 (153.7)

 65.0 

 (117.0)

 -  

 (74.9)

 (265.0)

 -  

 -  

 -  

 -  

 -  

 -  

 2,005.5 

 1,952.2 

 24.7 

 603.5 

2017
S$ Mil

 24.7 

 578.8 

 -  

 603.5 

 -  

 -  

 -  

 -  

 -  

 -  

Unquoted equity shares, at cost

Shareholder’s loan (unsecured)

Goodwill on consolidation adjusted
  against shareholders’ equity

Share of post-acquisition reserves
  (net of dividends, and accumulated
  amortisation of goodwill)

Translation differences

Less: Allowance for impairment losses

Reclassification to ‘Net deferred gain’ 
  (see Note 26)

As at 31 March 2018,

(i) 

The market values of the quoted equity shares in associates held by the Group and the Company were 
S$3.13  billion  (31  March  2017:  S$2.24  billion)  and  S$676.8  million  (31  March  2017:  S$671.8  million) 
respectively.

(ii) 

The Group’s proportionate interest in the capital commitments of the associates was S$166.6 million (31 
March 2017: S$227.3 million).

The details of associates are set out in Note 42.4.

203

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21. 

ASSOCIATES (Cont’d)

The  summarised  financial  information  of  the  Group’s  significant  associate  namely  Intouch  Holdings  Public 
Company Limited (“Intouch”), based on its financial statements and a reconciliation with the carrying amount of 
the investment in the consolidated financial statements was as follows –

Intouch

Statement of comprehensive income 

Revenue 

Profit after tax 

Other comprehensive income/ (loss)

Total comprehensive income 

Statement of financial position 

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Net assets 

Less: Non-controlling interests 

2018
S$ Mil

2017
S$ Mil

 353.9 

 144.1 

 488.2 

 10.9 

 499.1 

 696.7 

 1,485.4 

 (430.0)

 (303.2)

 1,448.9 

 (331.1)

 166.1 

 (1.6)

 164.5 

 701.9 

 1,607.4 

 (483.6)

 (395.3)

 1,430.4 

 (411.6)

Net assets attributable to equity holders

 1,117.8 

 1,018.8 

Proportion of the Group’s ownership 

Group’s share of net assets 

Goodwill and other identifiable intangible assets

Others 

21.0%

 234.7 

 1,417.6 

 (15.9)

21.0%

 213.9 

 1,371.7 

 (8.4)

Carrying amount of the investment 

 1,636.4 

 1,577.2 

Other items

Group’s share of market value 

Dividends received during the year

 1,639.6 

 1,525.0 

 77.8 

 -  

204

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
21. 

ASSOCIATES (Cont’d)

The aggregate information of the Group’s investments in associates which are not individually significant were as 
follows –

Share of profit after tax 

Share of other comprehensive (loss)/income

Share of total comprehensive income 

22. 

JOINT VENTURES

Group

2018
S$ Mil

 90.2 

 (2.2)

 88.0 

Group

Company

Quoted equity shares, at cost

Unquoted equity shares, at cost

2018
S$ Mil

2017
S$ Mil

 2,798.4 

 5,778.7 

 8,577.1 

 2,798.4 

 5,240.8 

 8,039.2 

Goodwill on consolidation adjusted

  against shareholders’ equity

 (1,225.9)

 (1,225.9)

Share of post-acquisition reserves

  (net of dividends, and accumulated

   amortisation of goodwill)

Translation differences

 9,395.1 

 (3,933.7)

 4,235.5 

 8,715.2 

 (3,215.6)

 4,273.7 

Less: Allowance for impairment losses

 (30.0)

 (30.0)

2018
S$ Mil

 -  

 22.8 

 22.8 

 -  

 -  

 -  

 -  

 -  

2017
S$ Mil

 76.3 

 2.9 

 79.2 

2017
S$ Mil

 -  

 23.0 

 23.0 

 -  

 -  

 -  

 -  

 -  

 12,782.6 

 12,282.9 

 22.8 

 23.0 

As at 31 March 2018, 

(i) 

(ii) 

The market value of the quoted equity shares in joint ventures held by the Group was S$21.29 billion (31 
March 2017: S$19.55 billion).

The  Group’s  proportionate  interest  in  the  capital  commitments  of  joint  ventures  was  S$2.14  billion  (31 
March 2017: S$1.80 billion).

The details of joint ventures are set out in Note 42.5.

205

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
  
  
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22. 

JOINT VENTURES (Cont’d)

Optus has an interest in an unincorporated joint operation to share certain 4G network sites and radio infrastructure 
across  Australia  whereby  it  holds  an  interest  of  50%  (31  March  2017:  50%)  in  the  assets,  with  access  to  the 
shared network and shares 50% (31 March 2017: 50%) of the cost of building and operating the network.

The Group’s property, plant and equipment included the Group’s interest in the property, plant and equipment 
employed in the unincorporated joint operation was S$1.08 billion (31 March 2017: S$1.03 billion).

The  summarised  financial  information  of  the  Group’s  significant  joint  ventures  namely  Bharti  Airtel  Limited 
(“Airtel”), PT  Telekomunikasi  Selular  (“Telkomsel”),  Globe Telecom,  Inc.  (“Globe”) and Advanced Info  Service 
Public  Company  Limited  (“AIS”),  based  on  their  financial  statements  and  a  reconciliation  with  the  carrying 
amounts of the investments in the consolidated financial statements were as follows –

Group - 2018

Airtel 
S$ Mil

Telkomsel
S$ Mil

Globe 
S$ Mil

AIS
S$ Mil

Statement of comprehensive income 

Revenue 

Depreciation and amortisation 

Interest income

Interest expense 

Income tax expense 

 17,574.5 

 (4,041.1)

 283.5 

 (1,958.4)

 (227.5)

 9,384.0 

 (1,399.4)

 81.5 

 (55.8)

 (974.5)

Profit after tax 

Other comprehensive (loss)/ income

 191.4 

 (234.8)

 2,946.4 

 (39.6)

 3,724.4 

 (757.2)

 4.4 

 (172.4)

 (184.9)

 420.6 

 29.5 

 6,564.2 

 (1,286.7)

 7.4 

 (137.7)

 (239.7)

 1,249.8 

 33.6 

Total comprehensive (loss)/ income 

 (43.4)

 2,906.8 

 450.1 

 1,283.4 

Statement of financial position 

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Net assets 

Less: Non-controlling interests 

 6,746.1 

 43,560.9 

 (15,756.0)

 (19,002.1)

 15,548.9 

 (1,684.8)

 2,993.9 

 5,759.2 

 (2,289.7)

 (702.6)

 5,760.8 

 -  

 1,453.9 

 5,540.3 

 (2,103.9)

 (3,166.1)

 1,724.2 

 0.9 

 1,428.1 

 10,612.1 

 (3,107.5)

 (6,916.1)

 2,016.6 

 (13.6)

Net assets attributable to equity holders

 13,864.1 

 5,760.8 

 1,725.1 

 2,003.0 

Proportion of the Group’s ownership 

Group’s share of net assets 

Goodwill capitalised 
Others (2)

39.5%

 5,477.7 

 1,548.8 

 426.6 

35.0%

 2,016.2 

 1,403.6 

 -  

 813.0 

 373.4 

 (126.4)

47.1%  

23.3% (1)

Carrying amount of the investment 

 7,453.1 

 3,419.8 

 1,060.0 

 467.1 

 303.0 

 (7.6)

 762.5 

206

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
22. 

JOINT VENTURES (Cont’d)

Group - 2018

Other items

Airtel 
S$ Mil

Telkomsel
S$ Mil

Globe 
S$ Mil

AIS
S$ Mil

Cash and cash equivalents 

 964.3 

 1,634.3 

 158.3 

 457.7 

Non-current financial liabilities excluding 
  trade and other payables

Current financial liabilities excluding 
  trade and other payables 

 (18,146.6)

 (354.5)

 (2,619.5)

(4,199.0)

 (5,320.4)

 (168.5)

 (281.5)

 (14.0)

Group’s share of market value 

 12,680.9 

 NA 

 2,551.3 

 6,054.8 

Dividends received during the year

 47.9 

 1,017.8 

 152.8 

 217.1 

‘‘NA’’ denotes Not Applicable.

Notes:
(1)  Based on the Group’s direct equity interest in AIS. 
(2)  Others include adjustments to align the respective local accounting standards to FRS.  

Group - 2017

Airtel 
S$ Mil

Telkomsel
S$ Mil

Globe 
S$ Mil

AIS
S$ Mil

Statement of comprehensive income 

Revenue 

Depreciation and amortisation 

Interest income

Interest expense 

Income tax expense 

Profit after tax 

Other comprehensive (loss)/ income

 19,666.4 

 (4,073.3)

 380.9 

 (1,945.0)

 (718.9)

 834.5 

 (1,048.7)

 9,265.4 

 (1,352.8)

 105.8 

 (77.0)

 (1,003.5)

 3,059.4 

 (40.6)

 3,657.1 

 (690.8)

 3.8 

 (128.6)

 (169.5)

 439.5 

 4.0 

 6,058.2 

 (967.5)

 7.9 

 (188.5)

 (238.4)

 1,191.2 

 (0.1)

Total comprehensive (loss)/ income 

 (214.2)

 3,018.8 

 443.5 

 1,191.1 

Statement of financial position 

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Net assets 

Less: Non-controlling interests 

 4,378.4 

 45,611.2 

 (13,568.3)

 (20,676.7)

 15,744.6 

 (1,399.0)

 3,562.2 

 6,169.6 

 (2,541.8)

 (896.8)

 6,293.2 

 -  

 1,490.0 

 5,545.0 

 (2,335.1)

 (2,910.8)

 1,789.1 

 0.4 

 1,299.5 

 10,041.0 

 (2,994.1)

 (6,816.6)

 1,529.8 

 (5.7)

Net assets attributable to equity holders

 14,345.6 

 6,293.2 

 1,789.5 

 1,524.1 

207

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
22. 

JOINT VENTURES (Cont’d)

Group - 2017

Airtel 
S$ Mil

Telkomsel
S$ Mil

Globe 
S$ Mil

AIS
S$ Mil

Proportion of the Group’s ownership 

Group’s share of net assets 

Goodwill capitalised 

Others 

(2)

36.5%

 5,230.4 

 1,229.0 

 387.6 

35.0%

 2,202.6 

 1,403.6 

 -  

47.1%  

 843.6 

 381.7 

 (139.9)

23.3% (1)
 355.4 

 293.3 

 (2.3)

Carrying amount of the investment 

 6,847.0 

 3,606.2 

 1,085.4 

 646.4 

Other items

Cash and cash equivalents 

 348.7 

 2,371.9 

 229.1 

 522.0 

Non-current financial liabilities excluding 

  trade and other payables

 (19,774.0)

 (570.2)

 (2,658.7)

(3,690.1)

Current financial liabilities excluding 

  trade and other payables 

 (3,884.7)

 (76.6)

 (353.6)

 (187.4)

Group’s share of market value 

 10,995.3 

 NA 

 3,544.1 

 5,013.9 

Dividends received during the year

 16.5 

 971.2 

 159.9 

 330.3 

‘‘NA’’ denotes Not Applicable.

Notes:
(1)  Based on the Group’s direct equity interest in AIS. 
(2)  Others include adjustments to align the respective local accounting standards to FRS.  

The aggregate information of the Group’s investments in joint ventures which are not individually significant were 
as follows –

Share of profit after tax 

Share of other comprehensive loss

Share of total comprehensive income 

Aggregate carrying value 

“*” denotes amount of less than S$50,000

Group

2017
S$ Mil

 18.1 

 (0.1)

 18.0 

 97.9 

2018
S$ Mil

 12.2 

 * 

 12.2 

 87.2 

208

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
23. 

IMPAIRMENT REVIEWS

Goodwill arising on acquisition of subsidiaries 

The carrying values of the Group’s goodwill on acquisition of subsidiaries as at 31 March 2018 were assessed for 
impairment during the financial year.  

Goodwill is allocated for impairment testing purposes to the individual entity which is also the cash generating 
unit (“CGU”).  

The  Group  is  structured  into  three  business  segments,  Group  Consumer,  Group  Enterprise  and  Group  Digital 
Life. Based on the relative fair value approach, the goodwill of Optus was fully allocated to Consumer Australia 
included in the Group Consumer segment for the purpose of goodwill impairment test.

The  recoverable  values  of  cash  generating  units  including  goodwill  are  determined  based  on  value-in-use 
calculations.

The value-in-use calculations apply a discounted cash flow model using cash flow projections based on financial 
budgets and forecasts approved by management. The Group has used cash flow projections of five years except 
for Amobee and the global cyber security business which were based on cash flow projections of ten years to 
better reflect their stages of growth. Cash flows beyond the terminal year are extrapolated using the estimated 
growth rates stated in the table below. Key assumptions used in the calculation of value-in-use are growth rates, 
operating margins, capital expenditure and discount rates.

The terminal growth rates used do not exceed the long term average growth rates of the respective industry and 
country in which the entity operates and are consistent with forecasts included in industry reports. 

The discount rates applied to the cash flow projections are based on Weighted Average Cost of Capital (WACC) 
where the cost of a company’s debt and equity capital are weighted to reflect its capital structure. 

In April 2018, a global cyber security unit was established to integrate the cyber security businesses across the 
Group including Trustwave. Hence, the Group’s global cyber security business (including Trustwave) is considered 
a single CGU for the purpose of goodwill impairment test. As at 31 March 2018, the carrying value of goodwill in 
the global cyber security business was S$999 million, with the value-in-use determined based on terminal growth 
rate of 4.0% and pre-tax discount rate of 11.9%. 

The details of other subsidiaries are shown in the table below:     

Group

Carrying value of goodwill in -

  Optus Group

  Amobee, Inc. 

SCS Computer Systems 
  Pte. Ltd.

2018
S$ Mil

2017
S$ Mil

Terminal
 growth rate (1)

Pre-tax 
discount rate

2018

2017

2018

2017

 9,279.1 

 9,288.4 

3.0%

3.0%

9.0%

9.3%

 1,011.8 

 729.8 

3.5%

4.0%

14.1%

14.4%

 82.2 

 82.2 

2.0%

2.0%

7.4%

7.6%

Note:
(1)  Weighted average growth rate used to extrapolate cash flows beyond the terminal year.

209

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23. 

IMPAIRMENT REVIEWS (Cont’d)

As at 31 March 2018, no impairment charge was required for goodwill arising from acquisition of subsidiaries, 
with any reasonably possible change to the key assumptions applied not likely to cause the recoverable values 
to be below their carrying values.

24. 

AVAILABLE-FOR-SALE (“AFS”) INVESTMENTS

Balance as at 1 April 

Additions 

Disposals/ Write-offs

Write-back of impairment

Net fair value (losses)/ gains included in 

  ‘Other Comprehensive Income’

Translation differences

Group

Company

2018
S$ Mil

 192.9 

 59.6 

 (27.2)

 -  

 (26.8)

 (0.6)

2017
S$ Mil

 147.5 

 39.6 

 (11.0)

 0.9 

 16.5 

 (0.6)

2018
S$ Mil

 37.4 

 -  

 (6.4)

 -  

 (25.5)

 -  

2017
S$ Mil

 35.1 

 -  

 -  

 -  

 2.3 

 -  

Balance as at 31 March

 197.9 

 192.9 

 5.5 

 37.4 

Cost

Accumulated impairment

Fair value changes

AFS investments included the following –

 252.4 

 (79.1)

 24.6 

 197.9 

 221.1 

 (80.8)

 52.6 

 192.9 

 3.3 

 -   

 2.2 

 5.5 

 9.7 

 -   

 27.7 

 37.4 

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

Quoted equity securities

   - Singapore

   - United States of America

   - Thailand

Unquoted

  Equity securities 

  Others

 5.5 

 4.5 

 -  

 10.0 

 168.2 

 19.7 

 187.9 

 197.9 

 7.7 

 4.2 

 21.4 

 33.3 

 149.4 

 10.2 

 159.6 

 192.9 

 5.5 

 -  

 -  

 5.5 

 -  

 -  

 -  

 7.7 

 -  

 21.4 

 29.1 

 8.3 

 -  

 8.3 

 5.5 

 37.4 

210

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25. 

DERIVATIVE FINANCIAL INSTRUMENTS

Balance as at 1 April
Fair value (losses)/ gains
   - included in income statement 
   - included in ‘Hedging Reserve’
Settlement of swaps for bonds repaid 
Translation differences

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

 243.6 

 299.3 

 (88.0)

 (99.9)

 (113.3)
 4.3 
 (61.4)
 (12.6)

 (58.0)
 13.9 
 (16.3)
 4.7 

 (73.2)
 1.5 
 -  
 -  

 (0.8)
 12.7 
 -  
 -  

Balance as at 31 March

 60.6 

 243.6 

 (159.7)

 (88.0)

Disclosed as -
  Current asset
  Non-current asset
  Current liability
  Non-current liability

25.1 

Fair Values

 23.2 
 409.6 
 (70.0)
 (302.2)

 107.3 
 455.2 
 (15.8)
 (303.1)

 70.1 
 134.1 
 (84.9)
 (279.0)

 107.1 
 284.9 
 (110.0)
 (370.0)

 60.6 

 243.6 

 (159.7)

 (88.0)

The  fair  values  of  the  currency  and  interest  rate  swap  contracts  exclude  accrued  interest  of  S$16.8  million  
(31 March 2017: S$19.6 million). The accrued interest is separately disclosed in Note 16 and Note 27.

The fair values of the derivative financial instruments were as follows -

2018

Fair value and cash flow hedges
  Cross currency swaps
  Interest rate swaps
  Forward foreign exchange contracts

Derivatives that do not qualify for 
  hedge accounting
  Cross currency swaps
  Interest rate swaps

Disclosed as -
  Current
  Non-current

211

Group
Fair values 

Company
Fair values

Assets
S$ Mil

Liabilities
S$ Mil

Assets
S$ Mil

Liabilities
S$ Mil

 417.2 
 15.6 
 -  

 253.9 
 86.7 
 25.1 

 -  
 -  
 -  

 135.9 
 7.0 
 16.8 

 -  
 -  

 -  
 6.5 

 183.2 
 21.0 

 183.2 
 21.0 

 432.8 

 372.2 

 204.2 

 363.9 

 23.2 
 409.6 

 70.0 
 302.2 

 70.1 
 134.1 

 84.9 
 279.0 

 432.8 

 372.2 

 204.2 

 363.9 

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
25.1 

Fair Values (Cont’d)

2017

Fair value and cash flow hedges

  Cross currency swaps

  Interest rate swaps

  Forward foreign exchange contracts

Derivatives that do not qualify for 
  hedge accounting

  Cross currency swaps

  Interest rate swaps

  Forward foreign exchange contracts

Disclosed as -

  Current

  Non-current

Group
Fair values 

Company
Fair values

Assets
S$ Mil

Liabilities
S$ Mil

Assets
S$ Mil

Liabilities
S$ Mil

 529.1 

 31.0 

 2.1 

 152.2 

 129.3 

 27.0 

 -  

 -  

 2.1 

 72.5 

 7.4 

 10.2 

 -  

 0.1 

 0.2 

 -  

 10.4 

 -  

 350.4 

 39.5 

 -  

 350.4 

 39.5 

 -  

 562.5 

 318.9 

 392.0 

 480.0 

 107.3 

 455.2 

 15.8 

 303.1 

 107.1 

 284.9 

 110.0 

 370.0 

 562.5 

 318.9 

 392.0 

 480.0 

The cash flow hedges are designated for foreign currency commitments and repayments of principal and interest 
of foreign currency denominated bonds. 

The forecast transactions for the foreign currency commitments are expected to occur in the financial year ending 
31 March 2019, while the forecast transactions for the repayment of principal and interest of the foreign currency 
denominated bonds will occur according to the timing disclosed in Note 28.

212

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018  
 
 
  
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
25.1 

Fair Values (Cont’d)

As at 31 March 2018, the details of the outstanding derivative financial instruments were as follows -

Interest rate swaps

Notional principal 
  (S$ million equivalent)

  Fixed interest rates

  Floating interest rates

Cross currency swaps

Notional principal
  (S$ million equivalent)

  Fixed interest rates

  Floating interest rates

Forward foreign exchange

Notional principal 
  (S$ million equivalent)

Group

Company

2018

2017

2018

2017

2,702.5 

 3,680.9 

 2,838.4 

 4,639.6 

  2.0% to 6.2%  1.2% to 6.2%   2.0% to 4.5%  1.2% to 4.5%

  2.0% to 3.2%  1.8% to 2.3%   1.1% to 3.2%  1.1% to 2.3%

 4,794.9 

 6,073.3 

 5,256.8 

 7,543.6 

  1.9% to 7.5%  1.9% to 7.5%   0.9% to 5.2%  0.9% to 5.2%

  1.5% to 3.5%  1.5% to 3.3%   1.5% to 3.3%  1.5% to 3.2%

 846.5 

 1,358.2 

 304.1 

 713.3 

The interest rate swaps entered into by the Group are re-priced at intervals ranging from monthly to six-monthly 
periods. The interest rate swaps entered by the Company are re-priced every six months.

26. 

LOAN TO AN ASSOCIATE/ NET DEFERRED GAIN 

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

Loan to an associate

 -  

 1,100.5 

 -  

 1,100.5 

Unamortised deferred gain 

Reclassification from ‘Associates’ (see Note 21)

Net deferred gain

Classified as -

Current

Non-current

 452.7 

 (74.9)

 1,616.5 

 (265.0)

 377.8 

 1,351.5 

 20.1 

 357.7 

 68.8 

 1,282.7 

 377.8 

 1,351.5 

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

213

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
  
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
26. 

LOAN TO AN ASSOCIATE/ NET DEFERRED GAIN (Cont’d)

NetLink  Trust  (“NLT”)  is  a  business  trust  established  as  part  of  the  Info-communications  Media  Development 
Authority  of  Singapore’s  (“IMDA”)  effective  open  access  requirements  under  Singapore’s  Next  Generation 
Nationwide Broadband Network. In prior years, Singtel had sold certain infrastructure assets, namely ducts and 
manholes used by OpenNet Pte. Ltd., and exchange buildings (“Assets”), and Singtel’s business of providing 
duct and manhole services in relation to the Assets (“Business”) to NLT. 

As Singtel did not have effective control over NLT, it was equity accounted as an associate at the Group.

At the consolidated level, the gain on disposal of Assets recorded by Singtel is deferred in the Group’s statement 
of financial position and amortised over the useful lives of the Assets. The unamortised deferred gain is released 
to the Group’s income statement when NLT is partially or fully sold, based on the proportionate equity interest 
disposed. In addition, lease expenses paid to NLT and interest income earned from NLT are not eliminated on a 
line-by-line basis in the Group.  

On  19  July  2017,  Singtel  sold  its  100%  interest  in  NLT  to  NetLink  NBN  Trust  (the  “Trust”)  for  an  aggregate 
consideration of S$1.89 billion comprising a cash consideration of S$1.11 billion and 24.8% interest in the Trust. 
The Group recorded a net gain on disposal of NLT of S$2.03 billion which included the release of deferred gains 
(after tax) of S$1.10 billion on past sales of Assets to NLT. In addition, the loan to NLT of S$1.10 billion, which 
carried  a  fixed  interest  rate  and  was  secured  by  a  fixed  and  floating  charge  over  NLT’s  assets  and  business 
undertakings, was fully repaid. 

Following the divestment, Singtel ceased to own units in NLT but continues to have an interest of 24.8% in the 
Trust which owns all the units in NLT. As Singtel does not have effective control over the Trust, the Trust is equity 
accounted as an associate at the Group.   

27. 

TRADE AND OTHER PAYABLES

Group

Company

Trade payables

Accruals

Interest payable on borrowings

Deferred income

Customers’ deposits

Due to associates and joint ventures

 - trade

 - non-trade

Due to subsidiaries

 - trade

 - non-trade

2018
S$ Mil

2017
S$ Mil

 3,994.0 

 3,590.7 

 876.3 

 137.9 

 38.3 

 26.6 

 31.0 

 * 

 31.0 

 -  

 -  

 -  

 983.4 

 142.7 

 31.3 

 26.2 

 27.9 

 * 

 27.9 

 -  

 -  

 -  

Other payables

 129.8 

 120.2 

2018
S$ Mil

 585.5 

 245.9 

 41.7 

 12.6 

 15.3 

 23.9 

 -  

 23.9 

 294.3 

 214.4 

 508.7 

 34.8 

2017
S$ Mil

 592.9 

 160.4 

 43.6 

 11.5 

 15.8 

 22.3 

 -  

 22.3 

 263.8 

 458.2 

 722.0 

 33.5 

“*” denotes amount of less than S$50,000.

 5,233.9 

 4,922.4 

 1,468.4 

 1,602.0 

214

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27. 

TRADE AND OTHER PAYABLES (Cont’d)

The trade payables are non-interest bearing and are generally settled on 30 to 60 days terms, with some payables 
relating to handset and network investments having payment terms of up to a year.

The interest payable on borrowings are generally settled on a half-year or annual basis except for interest payable 
on certain bonds and syndicated loan facilities which are settled on quarterly and monthly basis respectively. 

The amounts due to subsidiaries are repayable on demand and interest-free.

28. 

BORROWINGS (UNSECURED)

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

Current

  Bonds

  Bank loans

Non-current

  Bonds

  Bank loans 

 1,129.0 

 671.5 

 978.7 

 2,068.2 

 1,800.5 

 3,046.9 

 6,694.9 

 1,830.2 

 7,702.7 

 150.0 

 8,525.1 

 7,852.7 

Total unsecured borrowings

 10,325.6 

 10,899.6 

 -  

 -  

 -  

 673.2 

 -  

 673.2 

 673.2 

 -  

 -  

 -  

 746.2 

 -  

 746.2 

 746.2 

215

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
   
 
 
 
 
 
 
 
 
   
   
 
 
 
 
28.1 

Bonds

Principal amount

US$1,600 million (1)  
  (31 March 2017: US$2,300 million)
US$500 million (1)
US$500 million (1)(2)

US$400 million

€700 million (1)(2) 

A$1,025 million (2)  
  (31 March 2017: A$625 million)

S$600 million (1) 

S$550 million
S$150 million (2) 

HK$1,000 million (2) 

HK$620 million 

Classified as -

  Current

  Non-current

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

 2,094.1 

 3,212.7 

 673.2 

 659.5 

 525.1 

 746.2 

 711.2 

 559.2 

 1,150.2 

 1,071.0 

 1,028.2 

 665.0 

 600.0 

 550.0 

 149.9 

 600.0 

 550.0 

 149.9 

 167.1 

 103.6 

 179.8 

 111.5 

 -  

 673.2 

 -  

 746.2 

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 -  

 7,823.9 

 8,681.4 

 673.2 

 746.2 

 1,129.0 

 6,694.9 

 978.7 

 7,702.7 

 7,823.9 

 8,681.4 

 -  

 673.2 

 673.2 

 -  

 746.2 

 746.2 

¥10,000 million  

 123.0 

 124.9 

Notes:
(1)  The bonds are listed on the Singapore Exchange. 
(2)   The bonds, issued by Optus Group, are subject to a negative pledge that limits the amount of secured indebtedness of certain subsidiaries 

of Optus.

28.2 

Bank Loans

Current

Non-current 

Group

2018
S$ Mil

2017
S$ Mil

 671.5 

 1,830.2 

 2,068.2 

 150.0 

 2,501.7 

 2,218.2 

216

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
28.3  Maturity

The maturity periods of the non-current unsecured borrowings at the end of the reporting period were as follows -

Between one and two years

Between two and five years

Over five years

28.4 

Interest Rates

Group

Company

2018
S$ Mil

2017
S$ Mil

 1,009.5 

 5,539.1 

 1,976.5 

 1,346.0 

 3,709.2 

 2,797.5 

 8,525.1 

 7,852.7 

2018
S$ Mil

 -  

 -  

 673.2 

 673.2 

The weighted average effective interest rates at the end of the reporting period were as follows -

Bonds (fixed rate) 

Bonds (floating rate) 

Bank loans (floating rate)

Group

Company

2018
%

 3.9 

 3.0 

 1.9 

2017
%

 3.8 

 2.1 

 1.6 

2018
%

 7.4 

 -  

 -  

2017
S$ Mil

 -  

 -  

 746.2 

 746.2 

2017
%

 7.4 

 -  

 -  

28.5 

The tables below set out the maturity profile of borrowings and related swaps based on expected contractual 
undiscounted cash flows. 

Group

As at 31 March 2018

Less than
1 year
S$ Mil

Between 
1 and 2 years
S$ Mil

Between 
2 and 5 years
S$ Mil

Over 
5 years
S$ Mil

Net-settled interest rate swaps 

 45.3 

 37.2 

 20.3 

 17.3 

Cross currency interest rate swaps 
  (gross-settled) 

- Inflow

- Outflow

Borrowings

 (301.3)

 259.4 

 3.4 

 (252.5)

 210.8 

 (4.5)

 (458.5)

 363.4 

 (74.8)

 (624.9)

 464.4 

 (143.2)

 2,143.8 

 1,928.7 

 5,103.1 

 2,768.7 

 2,147.2 

 1,924.2 

 5,028.3 

 2,625.5 

217

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28.5 

Group

As at 31 March 2017

Less than
1 year
S$ Mil

Between 
1 and 2 years
S$ Mil

Between 
2 and 5 years
S$ Mil

Over 
5 years
S$ Mil

Net-settled interest rate swaps 

 47.4 

 44.3 

 48.3 

 20.4 

Cross currency interest rate swaps  
  (gross-settled) 

- Inflow

- Outflow

Borrowings

Company 

As at 31 March 2018

 (208.1)

 162.4 

 1.7 

 (191.8)

 154.7 

 7.2 

 (410.4)

 290.7 

 (71.4)

 (600.9)

 382.0 

 (198.5)

 3,258.8 

 1,618.2 

 4,059.6 

 3,629.4 

 3,260.5 

 1,625.4 

 3,988.2 

 3,430.9 

Less than
1 year
S$ Mil

Between 
1 and 2 years
S$ Mil

Between 
2 and 5 years
S$ Mil

Over 
5 years 
S$ Mil

Net-settled interest rate swaps 

 1.3 

 1.3 

 4.0 

 12.0 

Cross currency interest rate swaps 
  (gross-settled) 

- Inflow

- Outflow

Borrowings

 (157.1)

 139.2 

 (16.6)

 48.4 

 (125.4)

 107.2 

 (16.9)

 48.4 

 (308.2)

 253.9 

 (50.3)

 145.2 

 (562.6)

 399.7 

 (150.9)

 1,316.9 

 31.8 

 31.5 

 94.9 

 1,166.0 

As at 31 March 2017

Net-settled interest rate swaps 

 1.4 

 1.4 

 4.1 

 13.7 

Cross currency interest rate swaps  
  (gross-settled) 

- Inflow

- Outflow

Borrowings

 (182.9)

 161.1 

 (20.4)

 51.5 

 (155.4)

 133.8 

 (20.2)

 51.6 

 (358.9)

 293.6 

 (61.2)

 154.7 

 (679.0)

 461.7 

 (203.6)

 1,396.7 

 31.1 

 31.4 

 93.5 

 1,193.1 

218

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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219

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
   
 
 
 
   
 
 
 
   
 
   
 
 
 
 
         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
 
   
 
 
 
 
  
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29. 

BORROWINGS (SECURED)

Current

  Finance lease

  Bank loans 

Non-current

  Finance lease

  Bank loans 

Total secured borrowings

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

 23.1 

 -  

 23.1 

 81.5 

 -   

 81.5 

 104.6 

 29.4 

 57.3 

 86.7 

 168.8 

 30.8 

 199.6 

 286.3 

 7.4 

 -  

 7.4 

 68.5 

 -  

 68.5 

 75.9 

 1.5 

 -  

 1.5 

 157.2 

 -  

 157.2 

 158.7 

Secured bank loans of the Group were repaid during the year. Finance lease liabilities included lease liabilities in 
respect of certain assets leased from NetLink Trust. 

29.1 

Finance Lease Liabilities

The minimum lease payments under the finance lease liabilities were payable as follows -

Not later than one year

Later than one but not later than 
  five years

Later than five years

Less: Future finance charges

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

 28.8 

 42.6 

 11.9 

 13.0 

 58.4 

 268.0 

 355.2 

 (250.6)

 59.3 

 601.4 

 703.3 

 (505.1)

 44.9 

 268.0 

 324.8 

 (248.9)

 47.2 

 601.4 

 661.6 

 (502.9)

 104.6 

 198.2 

 75.9 

 158.7 

220

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29.2  Maturity

The maturity periods of the non-current secured borrowings at the end of the reporting period were as follows –

Between one and two years

Between two and five years

Over five years

29.3 

Interest Rates

Group

Company

2018
S$ Mil

 18.3 

 29.0 

 34.2 

 81.5 

2017
S$ Mil

 11.0 

 33.2 

 155.4 

 199.6 

2018
S$ Mil

 7.9 

 26.4 

 34.2 

 68.5 

2017
S$ Mil

 0.9 

 0.9 

 155.4 

 157.2 

The weighted average effective interest rates per annum at the end of the reporting period were as follows -

Finance lease liabilities

Bank loans

30. 

OTHER NON-CURRENT LIABILITIES

Performance share liability

Other payables

2018
%

 7.2 

 -  

2018
S$ Mil

 7.0 

 288.1 

 295.1 

Group

Company

2017
%

 7.2 

 5.8 

2018
%

 7.3 

 -  

Group

Company

2017
S$ Mil

 7.0 

 342.9 

 349.9 

2018
S$ Mil

 7.0 

 24.4 

 31.4 

2017
%

 7.3 

 -  

2017
S$ Mil

 7.0 

 16.7 

 23.7 

Other payables mainly relate to accruals of rental for certain network sites, long-term employee entitlements and 
asset retirement obligations. 

221

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31. 

SHARE CAPITAL

Group and Company

2018

2017

Number of
shares
Mil

Share 
capital
S$ Mil

Number of
shares
Mil

Share 
capital
S$ Mil

Balance as at 1 April

 16,329.1 

 4,127.3 

 15,943.5 

 2,634.0 

Issue of shares during the year  
  (net of costs)

 -  

 -  

 385.6 

 1,493.3 

Balance as at 31 March

 16,329.1 

 4,127.3 

 16,329.1 

 4,127.3 

Singtel issued 385,581,351 new ordinary shares to Temasek Holdings (Private) Limited to partially finance the 
acquisitions of shares in Intouch and BTL in November 2016.

All issued shares are fully paid and have no par value. The issued shares carry one vote per share and a right to 
dividends as and when declared by the Company. 

Capital Management

The Group is committed to an optimal capital structure while maintaining financial flexibility and investment grade 
credit  ratings.  In  order  to  achieve  an  optimal  capital  structure,  the  Group  may  adjust  the  amount  of  dividend 
payment, return capital to shareholders, issue new shares, buy back issued shares, obtain new borrowings or 
reduce its borrowings.

The Group monitors capital based on gross and net gearing ratios, and the dividend payout ratio ranges from 
60% to 75% of underlying net profit. Underlying net profit is defined as net profit before exceptional and other 
one-off items.

From time to time, the Group purchases its own shares from the market. The shares purchased are primarily for 
delivery to employees upon vesting of performance shares awarded under Singtel performance share plans. The 
Group can also cancel the shares which are repurchased from the market.

There were no changes in the Group’s approach to capital management during the financial year.

32. 

DIVIDENDS

Final dividend of 10.7 cents 
  (2017: 10.7 cents) per share, paid

Interim dividend of 6.8 cents 
  (2017: 6.8 cents) per share, paid 

Special dividend of 3.0 cents
  (2017: nil) per share, paid 

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

 1,746.6 

 1,705.5 

 1,747.2 

 1,706.0 

 1,110.0 

 1,110.0 

 1,110.4 

 1,110.4 

 489.7 

 -  

 489.9 

 -  

 3,346.3 

 2,815.5 

 3,347.5 

 2,816.4 

222

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32. 

DIVIDENDS (Cont’d)

During the financial year, a final one-tier tax exempt ordinary dividend of 10.7 cents per share, totalling S$1.75 
billion was paid in respect of the previous financial year ended 31 March 2017. In addition, an interim one-tier 
exempt ordinary dividend of 6.8 cents per share totalling S$1.11 billion and a special one-tier exempt dividend of 
3.0 cents per share totalling S$490 million were paid in respect of the current financial year ended 31 March 2018. 

The amount paid by the Group differed from that paid by the Company due to dividends on performance shares 
held by the Trust that were eliminated on consolidation of the Trust.

The  Directors  have  proposed  a  final  one-tier  tax  exempt  ordinary  dividend  of  10.7  cents  per  share,  totalling 
approximately S$1.75 billion in respect of the current financial year ended 31 March 2018 for approval at the 
forthcoming Annual General Meeting.  

These financial statements do not reflect the above final dividend payable of approximately S$1.75 billion, which 
will be accounted for in the Shareholders’ Equity as an appropriation of ‘Retained Earnings’ in the next financial 
year ending 31 March 2019.

33. 

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

The Group classifies fair value measurements using a fair value hierarchy which reflects the significance of the 
inputs used in making the measurements. The fair value hierarchy has the following levels -  

(a) 

quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);

(b) 

inputs other than quoted prices included within Level 1 which are observable for the asset or liability, either 
directly (i.e. as prices) or indirectly (i.e. derived from prices) (Level 2); and

(c)   

inputs for the asset or liability which are not based on observable market data (unobservable inputs) (Level 3).

33.1 

Financial assets and liabilities measured at fair value 

Group 
2018

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

Financial assets 

  AFS investments (1) (Note 24)
  - Quoted equity securities 

  - Unquoted investments 

Derivative financial instruments 
  (Note 25.1)

Financial liabilities 

Derivative financial instruments 
  (Note 25.1)

223

 10.0 

 -  

 10.0 

 -  

 10.0 

 -  

 -  

 -  

 -  

 -  

 432.8 

 432.8 

 372.2 

 372.2 

 -  

 86.1 

 86.1 

 -  

 86.1 

 -  

 -  

 10.0 

 86.1 

 96.1 

 432.8 

 528.9 

 372.2 

 372.2 

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
   
 
33.1 

Financial assets and liabilities measured at fair value (Cont’d)

Group 
2017

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

Financial assets 

  AFS investments (1) (Note 24)
  - Quoted equity securities 

  - Unquoted investments 

Derivative financial instruments 
  (Note 25.1)

Financial liabilities  

Derivative financial instruments 
  (Note 25.1)

 33.3 

 -  

 33.3 

 -  

 33.3 

 -  

 -  

 -  

 -  

 -  

 562.5 

 562.5 

 318.9 

 318.9 

 -  

 90.3 

 90.3 

 -  

 90.3 

 -  

 -  

 33.3 

 90.3 

 123.6 

 562.5 

 686.1 

 318.9 

 318.9 

Note:
(1)  Excluded AFS investments stated at cost of S$101.8 million (31 March 2017: S$69.3 million). 

Company 
2018

Financial assets

  AFS investments (Note 24)

  - Quoted equity securities

  Derivative financial instruments 

(Note 25.1)

Financial liabilities

  Derivative financial instruments 

(Note 25.1)

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

 5.5 

 -  

 -  

 204.2 

 5.5 

 204.2 

 -  

 -  

 363.9 

 363.9 

 -  

 -  

 -  

 -  

 -  

 5.5 

 204.2 

 209.7 

 363.9 

 363.9 

224

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
33.1 

Financial assets and liabilities measured at fair value (Cont’d)

Company 
2017

Financial assets

  AFS investments (Note 24)

  - Quoted equity securities

  - Unquoted equity securities 

  Derivative financial instruments 

(Note 25.1)

Financial liabilities

  Derivative financial instruments 

(Note 25.1)

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

 29.1 

 -  

 29.1 

 -  

 29.1 

 -  

 -  

 -  

 -  

 -  

 392.0 

 392.0 

 480.0 

 480.0 

 -  

 8.3 

 8.3 

 -  

 8.3 

 -  

 -  

 29.1 

 8.3 

 37.4 

 392.0 

 429.4 

 480.0 

 480.0 

See Note 2.7 for the policies on fair value estimation of the financial assets and liabilities. 

The  fair  values  of  the  unquoted  AFS  investments  included  within  Level  3  were  estimated  using  the  net  asset 
values as reported in the statements of financial position in the management accounts of the AFS investments or 
the use of recent arm’s length transactions. 

The following table presents the reconciliation for the unquoted AFS investments measured at fair value based on 
unobservable inputs (Level 3) -   

AFS investments - unquoted 
  Balance as at 1 April 
  Total (losses)/ gains included in 
     ‘Fair Value Reserve’
  Additions 
  Write-back of impairment
  Disposals  

Transfer from Level 3
Transfer to Level 3

  Balance as at 31 March 

Group

Company

2018
S$ Mil 

2017
S$ Mil 

2018
S$ Mil 

2017
S$ Mil 

 90.3 

 (6.1)
 6.2 
 -  
 (16.5)
 -  
 12.2 

 86.1 

 42.9 

 15.5 
 20.7 
 1.5 
 (2.4)
 (0.9)
 13.0 

 90.3 

 8.3 

 0.3 
 -  
 -  
 (8.6)
 -  
 -  

 -  

 7.7 

 0.6 
 -  
 -  
 -  
 -  
 -  

 8.3 

225

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
33.2 

Financial assets and liabilities not measured at fair value (but with fair value disclosed)

Carrying Value 

S$ Mil

Fair value 

Level 1
S$ Mil

Level 2
S$ Mil

Level 3
S$ Mil

Total 
S$ Mil

As at 31  March 2018
Financial liabilities

  Group
  Bonds (Note 28.1) 

  Company
  Bonds (Note 28.1) 

As at 31  March 2017
Financial liabilities

  Group
  Bonds (Note 28.1) 

  Company 
  Bonds (Note 28.1) 

 7,823.9 

 5,459.8 

 2,680.4 

 -  

 8,140.2 

 673.2 

 879.1 

 -  

 -  

 879.1 

 8,681.4 

 6,722.9 

 2,402.9 

 -  

 9,125.8 

 746.2 

 957.0 

 -  

 -  

 957.0 

See Note 2.7 on the basis of estimating the fair values and Note 25 for information on the derivative financial 
instruments used for hedging the risks associated with the borrowings.

Except as disclosed in the above tables, the carrying values of other financial assets and liabilities approximate 
their fair values. 

226

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
  
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34. 

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

34.1  

Financial Risk Factors

The Group’s activities are exposed to a variety of financial risks: foreign exchange risk, interest rate risk, credit 
risk, liquidity risk and market risk. The Group’s overall risk management seeks to minimise the potential adverse 
effects of these risks on the financial performance of the Group.

The Group uses financial instruments such as currency forwards, cross currency and interest rate swaps, and 
foreign currency borrowings to hedge certain financial risk exposures. No financial derivatives are held or sold for 
speculative purposes.

The  Directors  assume  responsibility  for  the  overall  financial  risk  management  of  the  Group.  For  the  financial 
year  ended  31  March  2018,  the  Risk  Committee  and  Finance  and  Investment  Committee  (“FIC”),  which  are 
committees of the Board, assisted the Directors in reviewing and establishing policies relating to financial risk 
management in accordance with the policies and directives of the Directors.

34.2  

Foreign Exchange Risk

The foreign exchange risk of the Group arises from subsidiaries, associates and joint ventures operating in foreign 
countries, mainly Australia, India, Indonesia, the Philippines, Thailand and United States of America. Additionally, 
the Group’s joint venture in India, Bharti Airtel Limited, is primarily exposed to foreign exchange risks from its 
operations  in  Sri  Lanka  and  14  countries  across  Africa.  Translation  risks  of  overseas  net  investments  are  not 
hedged unless approved by the FIC. 

The Group has borrowings denominated in foreign currencies that have primarily been hedged into the functional 
currency of the respective borrowing entities using cross currency swaps in order to reduce the foreign currency 
exposure  on  these  borrowings.  As  the  hedges  are  perfect,  any  change  in  the  fair  value  of  the  cross  currency 
swaps has minimal impact on profit and equity. 

The Group Treasury Policy, as approved by the FIC, is to substantially hedge all known transactional currency 
exposures. The Group generates revenue, receives foreign dividends and incurs costs in currencies which are 
other than the functional currencies of the operating units, thus giving rise to foreign exchange risk.  The currency 
exposures  are  primarily  for  the  Australian  Dollar,  Euro,  Hong  Kong  Dollar,  Indian  Rupee,  Indonesian  Rupiah, 
Philippine Peso, Pound Sterling, Thai Baht, United States Dollar and Japanese Yen. 

Foreign  currency  purchases  and  forward  currency  contracts  are  used  to  reduce  the  Group’s  transactional 
exposure to foreign currency exchange rate fluctuations. The foreign exchange difference on trade balances is 
disclosed under Note 6 and the foreign exchange difference on non-trade balances is disclosed under Note 10.

34.3 

Interest Rate Risk

The  Group  has  cash  balances  placed  with  reputable  banks  and  financial  institutions  which  generate  interest 
income  for  the  Group.  The  Group  manages  its  interest  rate  risks  on  its  interest  income  by  placing  the  cash 
balances on varying maturities and interest rate terms.

The Group’s borrowings include bank borrowings and bonds. The borrowings expose the Group to interest rate 
risk. The Group seeks to minimise its exposure to these risks by entering into interest rate swaps over the duration 
of its borrowings.  Interest rate swaps entail the Group agreeing to exchange, at specified intervals, the difference 
between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal 
amount. As at 31 March 2018, after taking into account the effect of interest rate swaps, approximately 67% (31 
March 2017: 70%) of the Group’s borrowings were at fixed rates of interest.

As at 31 March 2018, assuming that the market interest rate is 50 basis points higher or lower and with no change 
to the other variables, the annualised interest expense on borrowings would be higher or lower by S$15.5 million 
(2017: S$13.5 million). 

227

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
34.4 

Credit Risk

Financial  assets  that  potentially  subject  the  Group  to  concentrations  of  credit  risk  consist  primarily  of  trade 
receivables, cash and cash equivalents and financial instruments used in hedging activities.

The Group has no significant concentration of credit risk from trade receivables due to its diverse customer base.  
Credit risk is managed through the application of credit assessment and approvals, credit limits and monitoring 
procedures. Where appropriate, the Group obtains deposits or bank guarantees from customers or enters into 
credit insurance arrangements. 

The Group places its cash and cash equivalents with a number of major and high credit rating commercial banks 
and other financial institutions. Derivative counter-parties are limited to high credit rating commercial banks and 
other financial institutions. The Group has policies that limit the financial exposure to any one financial institution.

34.5 

Liquidity Risk

To manage liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate 
by the management to finance the Group’s operations and mitigate the effects of fluctuations in cash flows.  Due 
to the dynamic nature of the underlying business, the Group aims at maintaining flexibility in funding by keeping 
both committed and uncommitted credit lines available to ensure that the Group is able to meet the short-term 
obligations of the Group as they fall due. 

34.6  Market Risk

The Group has investments in quoted equity shares.  The market value of these investments will fluctuate with 
market conditions.

35. 

SEGMENT INFORMATION

Segment information is presented based on the information reviewed by senior management for performance 
measurement and resource allocation.

Singtel Group is organised by three business segments, Group Consumer, Group Enterprise and Group Digital 
Life.

Group Consumer comprises the consumer businesses across Singapore and Australia, as well as the Group’s 
investments, mainly AIS and Intouch (which has an equity interest of 40.5% in AIS) in Thailand, Airtel in India, 
Africa and Sri Lanka, Globe in the Philippines, and Telkomsel in Indonesia. It focuses on driving greater value and 
performance from the core carriage business including mobile, pay TV, fixed broadband and voice, as well as 
equipment sales. 

Group Enterprise comprises the business groups across Singapore, Australia, United States of America, Europe 
and  the  region,  and  focuses  on  growing  the  Group’s  position  in  the  enterprise  markets.  Key  services  include 
mobile,  equipment  sales,  fixed  voice  and  data,  managed  services,  cloud  computing,  cyber  security,  IT  and 
professional consulting.

Group Digital Life (“GDL”) focuses on using the latest internet technologies and assets of the Group’s operating 
companies  to  develop  new  revenue  and  growth  engines  by  entering  adjacent  businesses  where  it  has  a 
competitive advantage. It focuses on three key businesses in digital life – digital marketing (Amobee), regional 
premium over-the-top video (HOOQ) and advanced analytics and intelligence capabilities (DataSpark), in addition 
to strengthening its role as Singtel’s digital innovation engine through Innov8. 

Corporate comprises the costs of Group functions not allocated to the business segments. 

228

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
35. 

SEGMENT INFORMATION (Cont’d)

The measurement of segment results which is before exceptional items, is in line with the basis of information 
presented to management for internal management reporting purposes. 

The  costs  of  shared  and  common  infrastructure  are  allocated  to  the  business  segments  using  established 
methodologies. 

The Group’s reportable segments by the three business segments for the financial years ended 31 March 2018 
and 31 March 2017 were as follows –

Group - 2018

Group 
Consumer 
S$ Mil

Group 
Enterprise 
S$ Mil

Group 
Digital Life
S$ Mil

Corporate
S$ Mil

Group 
Total
S$ Mil

Operating revenue

 9,826.1 

 6,625.4 

 1,080.3 

 -  

 17,531.8 

Operating expenses 
Other income
Earnings before interest, tax,  
  depreciation and amortisation 
  (“EBITDA”)

Share of pre-tax results of 
  associates and joint ventures 
- Airtel
- Telkomsel 
- Globe
- AIS
- Intouch
- Others 

EBITDA and share of pre-tax  
  results of associates and joint  
  ventures 

Depreciation and amortisation 
Earnings before interest and  
  tax (“EBIT”)

Segment assets 
Investment in associates
  and joint ventures
- Airtel
- Telkomsel 
- Globe 
- AIS 
- Intouch
- Others 

Goodwill on acquisition
   of subsidiaries 
Other assets

 (6,663.8)
 206.9 

 (4,814.3)
 44.8 

 (1,133.4)
 1.8 

 (90.0)
 5.3 

 (12,701.5)
 258.8 

 3,369.2 

 1,855.9 

 (51.3)

 (84.7)

 5,089.1 

 199.3 
 1,372.4 
 289.1 
 347.4 
 103.0 
 0.9 
 2,312.1 

 -  
 -  
 -  
 -  
 -  
 -  
 -  

 -  
 -  
 -  
 -  
 -  
 -  
 -  

 -  
 -  
 -  
 -  
 -  
 148.7 
 148.7 

 199.3 
 1,372.4 
 289.1 
 347.4 
 103.0 
 149.6 
 2,460.8 

 5,681.3 

 1,855.9 

 (51.3)

 64.0 

 7,549.9 

 (1,633.3)

 (636.5)

 (69.1)

 (1.2)

 (2,340.1)

 4,048.0 

 1,219.4 

 (120.4)

 62.8 

 5,209.8 

 7,453.1 
 3,419.8 
 1,060.0 
 762.5 
 1,636.4 
 23.6 
 14,355.4 

 -  
 -  
 -  
 -  
 -  
 -  
 -  

 -  
 -  
 -  
 -  
 -  
 -  
 -  

 -  
 -  
 -  
 -  
 -  
 432.7 
 432.7 

 7,453.1 
 3,419.8 
 1,060.0 
 762.5 
 1,636.4 
 456.3 
 14,788.1 

 9,192.9 
 13,200.9 

 1,167.5 
 5,713.9 

 1,011.8 
 729.8 

 -  
 2,448.8 

 11,372.2 
 22,093.4 

 36,749.2 

 6,881.4 

 1,741.6 

 2,881.5 

 48,253.7 

229

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35. 

SEGMENT INFORMATION (Cont’d)

Group - 2017

Group 
Consumer 
S$ Mil

Group 
Enterprise 
S$ Mil

Group 
Digital Life
S$ Mil

Corporate
S$ Mil

Group 
Total
S$ Mil

Operating revenue

 9,572.0 

 6,600.3 

 539.1 

 -  

 16,711.4 

Operating expenses 
Other income/ (expense)

 (6,453.3)
 176.2 

 (4,732.0)
 45.0 

 (652.6)
 (8.7)

 (91.1)
 2.8 

 (11,929.0)
 215.3 

EBITDA

 3,294.9 

 1,913.3 

 (122.2)

 (88.3)

 4,997.7 

Share of pre-tax results of 
  associates and joint ventures 
- Airtel
- Telkomsel 
- Globe
- AIS (1)
- Intouch
- Others 

EBITDA and share of pre-tax  
  results of associates and joint  
  ventures (1)

 579.9 
 1,422.0 
 288.0 
 333.4 
 31.3 
 1.2 
 2,655.8 

 -  
 -  
 -  
 -  
 -  
 -  
 -  

 -  
 -  
 -  
 -  
 -  
 -  
 -  

 -  
 -  
 -  
 -  
 -  
 230.0 
 230.0 

 579.9 
 1,422.0 
 288.0 
 333.4 
 31.3 
 231.2 
 2,885.8 

 5,950.7 

 1,913.3 

 (122.2)

 141.7 

 7,883.5 

Depreciation and amortisation 

 (1,524.4)

 (644.9)

 (68.1)

 (1.5)

 (2,238.9)

EBIT (1)

 4,426.3 

 1,268.4 

 (190.3)

 140.2 

 5,644.6 

Segment assets 
Investment in associates
  and joint ventures
- Airtel
- Telkomsel 
- Globe 
- AIS 
- Intouch
- Others 

Goodwill on acquisition
   of subsidiaries 
Other assets

 6,847.0 
 3,606.2 
 1,085.4 
 646.4 
 1,577.2 
 25.2 
 13,787.4 

 -  
 -  
 -  
 -  
 -  
 -  
 -  

 -  
 -  
 -  
 -  
 -  
 -  
 -  

 -  
 -  
 -  
 -  
 -  
 447.7 
 447.7 

 6,847.0 
 3,606.2 
 1,085.4 
 646.4 
 1,577.2 
 472.9 
 14,235.1 

 9,193.4 
 12,590.8 

 1,241.4 
 5,637.4 

 729.8 
 602.5 

 -  
 4,063.8 

 11,164.6 
 22,894.5 

 35,571.6 

 6,878.8 

 1,332.3 

 4,511.5 

 48,294.2 

230

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35. 

SEGMENT INFORMATION (Cont’d)

A reconciliation of the total reportable segments’ EBIT to the Group’s profit before tax was as follows -

EBIT (1)

  Share of exceptional items of associates and joint ventures (post-tax) (1)
  Share of tax expense of associates and joint ventures (1)
  Exceptional items 

Profit before interest, investment income (net) and tax 
  Interest and investment income (net)
  Finance costs 

Group

2018
S$ Mil

2017
S$ Mil

 5,209.8 

 5,644.6 

 (34.0)
 (640.1)
 1,940.4 

 6,476.1 
 45.6 
 (390.2)

 (30.7)
 (837.8)
 (1.2)

 4,774.9 
 114.8 
 (374.3)

Profit before tax 

 6,131.5 

 4,515.4 

Note:
(1)  AIS’ 3G/4G handset subsidy costs in the previous financial year has been reclassified from share of exceptional items of joint ventures to 

share of pre-tax results of joint ventures to be consistent with current year.

The Group’s revenue from its major products and services are disclosed in Note 4. 

The  Group’s  revenue  is  mainly  derived  from  Singapore  and  Australia  which  respectively  accounted  for 
approximately 38% (2017: 40%) and 52% (2017: 53%) of the total revenue for the financial year ended 31 March 
2018, with the remaining 10% (2017: 7%) from the United States of America and other countries where the Group 
operates in. The geographical information on the Group’s non-current assets is not presented as it is not used for 
segmental reporting purposes.

The Group has a large and diversified customer base which consists of individuals and corporations. There was 
no single customer that contributed 10% or more of the Group’s revenue for the financial years ended 31 March 
2018 and 31 March 2017.  

36. 

OPERATING LEASE COMMITMENTS

The future aggregate minimum lease payments under non-cancellable operating leases contracted for at the end 
of the reporting period but not recognised as liabilities, were as follows -

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

 420.3 

 468.8 

 103.6 

 103.3 

 1,545.1 
 1,385.1 

 1,573.2 
 1,623.5 

 3,350.5 

 3,665.5 

 332.7 
 281.4 

 717.7 

 306.2 
 358.5 

 768.0 

Not later than one year
Later than one but not later than 
  five years
Later than five years

231

Notes to the Financial StatementsFor the financial year ended 31 March 2018   
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36. 

OPERATING LEASE COMMITMENTS (Cont’d)

Sale and operating leaseback contracts were entered into for certain property, plant and equipment for a period of 
20 years commencing on 2 March 2005 and 1 November 2010. The above commitments included the minimum 
amounts  payable  of  S$43.4  million  (31  March  2017:  S$42.6  million)  per  annum  under  those  contracts.  The 
operating  lease  payments  under  such  contracts  are  subject  to  review  every  year  with  a  general  increase  not 
exceeding the higher of 2% or Consumer Price Index percentage of the preceding year.

37. 

COMMITMENTS

37.1 

The commitments for capital and operating expenditures, and investments which had not been recognised in the 
financial statements, excluding the commitments shown under Note 37.2, were as follows -

Group

Company

2018
S$ Mil

2017
S$ Mil

2018
S$ Mil

2017
S$ Mil

Authorised and contracted for

 865.3 

 1,767.7 

 87.5 

 152.9 

37.2 

As at 31 March 2018, the Group’s commitments for the purchase of broadcasting programme rights were S$693 
million  (31  March  2017:  S$936  million).  The  commitments  included  only  the  minimum  guaranteed  amounts 
payable under the respective contracts and do not include amounts that may be payable based on revenue share 
arrangement which cannot be reliably determined as at the end of the reporting period. 

38. 

CONTINGENT LIABILITIES OF SINGTEL AND ITS SUBSIDIARIES

(a)  Guarantees

As at 31 March 2018, 

(i) 

(ii) 

The Group and Company provided bankers’ and other guarantees, and insurance bonds of S$570.4 
million and S$146.4 million (31 March 2017: S$437.5 million and S$268.1 million) respectively.

The Company provided guarantees for loans of S$1.18 billion (31 March 2017: S$1.16 billion) drawn 
down under various loan facilities entered into by Singtel Group Treasury Pte. Ltd. (“SGT”), a wholly 
owned subsidiary, with maturities between December 2018 and May 2020.

(iii) 

The  Company  provided  guarantees  for  SGT’s  notes  issue  of  an  aggregate  equivalent  amount  of 
S$4.04 billion (31 March 2017: S$4.92 billion) due between April 2018 and October 2026.

(b) 

In  2016  and  2017,  Singapore  Telecom  Australia  Investments  Pty  Limited  (“STAI”)  received  amended 
assessments from the Australian Taxation Office (“ATO”) in connection with the acquisition financing of 
Optus. The assessments comprised of primary tax of A$268 million, interest of A$58 million and penalties 
of A$67 million. STAI’s holding company, Singtel Australia Investment Ltd, would be entitled to refund of 
withholding tax estimated at A$89 million.

STAI has objected to the amended assessments. 

232

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
38. 

CONTINGENT LIABILITIES OF SINGTEL AND ITS SUBSIDIARIES (Cont’d)

In accordance with the ATO administrative practice, STAI paid a minimum amount of 50% of the assessed 
primary  tax  on  21  November  2016.  This  payment  continued  to  be  recognised  as  a  receivable  as  at  31 
March 2018.

STAI  has  received  advice  from  external  experts  in  relation  to  this  matter  and  will  vigorously  defend  its 
position. Accordingly, no provision has been made as at 31 March 2018.

On 2 November 2017, STAI received a tax position paper from the ATO in relation to the subsequent re-
financing of the above loan. This matter is now settled at an agreed amount.

(c) 

The Group is contingently liable for claims arising in the ordinary course of business and from certain tax 
assessments which are being contested, the outcome of which are not presently determinable. The Group 
is vigorously defending all these claims.

39. 

SIGNIFICANT CONTINGENT LIABILITIES OF ASSOCIATE AND JOINT VENTURES 

(a) 

Airtel,  a  joint  venture  of  the  Group,  has  disputes  with  various  government  authorities  in  the  respective 
jurisdictions  where  its  operations  are  based,  as  well  as  with  third  parties  regarding  certain  transactions 
entered into in the ordinary course of business. 

On 8 January 2013, the local regulator, Department of Telecommunications (“DOT”) issued a demand on 
Airtel Group for Rs. 52.01 billion (S$1.05 billion) towards levy of one time spectrum charge. 

In  the  opinion  of  Airtel,  inter-alia,  the  above  demand  amounts  to  alteration  of  the  terms  of  the  licences 
issued  in  the  past.  Airtel  believes,  based  on  independent  legal  opinion  and  its  evaluation,  that  it  is  not 
probable that any material part of the claim will be awarded against Airtel and therefore, pending outcome 
of this matter, no provision has been recognised 

As  at  31  March  2018,  other  taxes,  custom  duties  and  demands  under  adjudication,  appeal  or  disputes 
amounted to approximately Rs.126 billion (S$2.54 billion). In respect of some of the tax issues, pending 
final decisions, Airtel had deposited amounts with statutory authorities.

(b) 

AIS, a joint venture of the Group, has various commercial disputes and significant litigations. 

In  2008,  CAT  Telecom  Public  Company  Limited  (“CAT”)  demanded  that  AIS’  subsidiary,  Digital  Phone 
Company Limited (“DPC”) pay additional revenue share of THB 3.4 billion (S$143 million) arising from the 
abolishment of excise tax. CAT’s claim is still pending appeal before the Supreme Administrative Court.

In 2015, TOT Public Company Limited (“TOT”) demanded that AIS pays additional revenue share of THB 
62.8 billion (S$2.64 billion) arising from what TOT claims to be an illegality of two amendments made to the 
Concession Agreement, namely, Amendment 6 (regarding reduction in prepaid revenue share rate) made 
in 2001 and Amendment 7 (regarding deduction of roaming expense from revenue share) made in 2002, 
which have resulted in lower revenue share. This case is pending arbitration.

233

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
39. 

SIGNIFICANT CONTINGENT LIABILITIES OF ASSOCIATE AND JOINT VENTURES (Cont’d)

Between  2011  and  2016,  TOT  demanded  that  AIS  pays  additional  revenue  share  based  on  gross 
interconnection income from 2007 to 2015 amounting to THB 36.2 billion (S$1.52  billion) plus interest. The 
claims are pending arbitration.

Between 2014 and 2016, TOT demanded that AIS pays THB 41.1 billion (S$1.73 billion) plus interest for the 
porting of subscribers from 900 MHz to 2100 MHz network. This case is pending arbitration. 

In March 2018, CAT demanded DPC to transfer the telecommunications systems which would have been 
supplied under the Concession Agreement between CAT and DPC of THB 13.4 billion (S$564 million) or to 
pay the same amount plus interest. This case is pending arbitration.

As at 31 March 2018, there are a number of other claims against AIS and its subsidiaries amounting to THB 
28.3 billion (S$1.19 billion) which are pending adjudication.

AIS believes that the above claims will be settled in favour of AIS and will have no material impact to its 
financial statements.

(c) 

In October 2017, Intouch and its subsidiary, Thaicom Public Company Limited (“Thaicom”) received letters 
from the Ministry of Digital Economy and Society (the “Ministry”) stating that Thaicom 7 and Thaicom 8 
satellites (the “Satellites”) are governed under the terms of a 1991 satellite operating agreement between 
Intouch and the Ministry which entails the transfer of asset ownership, procurement of backup satellites, 
payment of revenue share, and procurement of property insurance. Intouch and Thaicom have obtained 
legal advice and are of the opinion that the Satellites are not covered under the Agreement but instead 
under  the  licence  from  the  National  Broadcasting  and  Telecommunications  Commission.  This  case  is 
pending arbitration.

(d)  Globe, a joint venture of the Group, is contingently liable for various claims arising in the ordinary conduct 
of  business  and  certain  tax  assessments  which  are  either  pending  decision  by  the  Courts  or  are  being 
contested, the outcome of which are not presently determinable. In the opinion of Globe’s management 
and legal counsel, the eventual liability under these claims, if any, will not have a material or adverse effect 
on Globe’s financial position and results of operations.

In June 2016, the Philippine Competition Commission (“PCC”) claimed that the Joint Notice of Acquisition 
filed  by  Globe,  PLDT  Inc.  (“PLDT”)  and  San  Miguel  Corporation  (“SMC”)  on  the  acquisition  of  SMC’s 
telecommunications business was deficient and cannot be claimed to be deemed approved. In July 2016, 
Globe filed a petition with the Court of Appeals of the Philippines (“CA”) to stop the PCC from reviewing 
the acquisition. In October 2017, the CA ruled in favour of Globe and PLDT, and declared the acquisition 
as valid and deemed approved. PCC subsequently elevated the case to the Supreme Court to review the 
CA’s rulings.

(e) 

As at 31 March 2018, Telkomsel, a joint venture of the Group, has filed appeals and cross-appeals amounting 
to approximately IDR 180 billion (S$17 million) for various tax claims arising in certain tax assessments 
which are pending final decisions, the outcome of which is not presently determinable. 

40. 

SUBSEQUENT EVENT

In April 2018, the Group completed the sale of a property for S$118 million.   

234

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
 
 
 
 
 
41. 

EFFECTS OF ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YET ADOPTED 

With effect from financial year beginning on 1 April 2018, the Group has adopted Singapore Financial Reporting 
Standards (International) (“SFRS(I)”), SFRS(I) 9, Financial Instruments, and SFRS(I) 15, Revenue from Contracts 
with Customers. The new accounting framework and standards will be retrospectively applied to the financial 
statements for the financial year ended 31 March 2018 and the opening statement of financial position as at 1 
April 2017.

SFRS(I)  are  identical  to  the  International  Financial  Reporting  Standards  (IFRS)  as  issued  by  the  International 
Accounting Standards Board (IASB). An assessment of the transition options and requirements on application 
of SFRS(I) 1, First-time adoption of International Financial Reporting Standards, has been performed. The Group 
expects the adoption of the new accounting framework to have the following effects arising from the transition 
options:

(a) 

The currency translation loss of the Group as at 1 April 2017 of S$4.51 billion will be transferred to retained 
earnings.  Consequently,  retained  earnings  as  at  1  April  2017  will  correspondingly  be  lower  by  S$4.51 
billion.

(b) 

The assets and retained earnings of the Group may be lower with the adoption of fair value as the ‘deemed 
cost’ as at 1 April 2017 for certain property, plant and equipment.

SFRS(I) 9 introduces new requirements for classification and measurement of financial assets and financial liabilities, 
general hedge accounting and impairment requirements for financial assets. Equity investments currently accounted 
as Available-For-Sale (“AFS”) investments will be accounted as ‘Fair Value through Other Comprehensive Income 
(“FVOCI”)’ investments. Companies can choose to recognise either 12-month or lifetime expected credit losses 
for its trade receivables and contract assets. The Group plans to recognise lifetime expected credit losses given the 
short duration of its debts.

SFRS(I)  15  establishes  a  single  comprehensive  model  of  accounting  for  revenue  arising  from  contracts  with 
customers.  The  standard  requires  companies  to  apportion  revenue  earned  from  contracts  to  performance 
obligations based on a five-step model on a relative standalone selling price basis. It also introduces new contract 
cost guidance and requires certain additional disclosures. The adoption of SFRS(I) 15 will have the following key 
effects at the consolidated level:

(a) 

An increase in revenue allocated to sales of equipment, which are fair valued at standalone selling price, 
and a reduction in mobile service revenue over the customer contract period.

(b) 

Cost of sales will be higher and mobile customer acquisition cost will be lower.

(c) 

(d) 

Customer acquisition cost such as dealers’ commission will be capitalised and amortised in the income 
statement as the Group recognises the related revenue. 

Contract assets will be higher from allocation of revenue to sales of equipment. Contract asset represents 
the difference between the revenue recognised and the upfront cash consideration received from customers.

235

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
      
41. 

EFFECTS OF ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YET ADOPTED (Cont’d)

The adoption of SFRS(I) 9 and SFRS(I) 15 are not expected to have a material impact on the net results of the 
Group.

SFRS(I) 16, Leases, will take effect from financial year beginning on 1 April 2019. This standard requires lessees to 
adopt a single lease accounting model with most leases recognised in balance sheets to reflect the rights to use 
the leased assets and the associated obligations for lease payments. Recognition exemptions for low value assets 
and short term leases can be applied. The standard continues to adopt dual accounting lease model for lessor 
accounting. The Group plans to apply SFRS(I) 16 prospectively with the cumulative effect of initial application as an 
adjustment to the opening retained earnings as at 1 April 2019. The Group is currently in the process of assessing 
the impact of adoption of this standard, which is expected to be significant.

The other new or revised standards issued but not yet effective are not expected to have a significant impact on 
the financial statements of the Group.

236

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
 
42. 

COMPANIES IN THE GROUP

The  Company’s  immediate  and  ultimate  holding  company  is  Temasek  Holdings  (Private)  Limited,  a  company 
incorporated in Singapore. The following were the significant subsidiaries as well as associates and joint ventures 
as at 31 March 2018 and 31 March 2017.

42.1 

Significant subsidiaries incorporated in Singapore

Name of subsidiary 

Principal activities

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

1.

2.

Amobee Asia Pte. Ltd.

Provision of digital marketing services

100

100

DataSpark Pte. Ltd.

Develop and market data analytics and 
insights products and services

100

100

3.

Group Enterprise Pte. Ltd.

Telecommunications resellers and third 
party telecommunications providers

100

100

4.

HOOQ Digital Pte. Ltd.

Provision of regional premium 
over-the-top video services

5.

NCS Communications Engineering 
Pte. Ltd.

Provision of facilities management and 
consultancy services, and distributor of 
specialised telecommunications and data 
communication products

65

65

100

100

6.

NCS Pte. Ltd. 

Provision of information technology and 
consultancy services

100

100

7.

NCSI Solutions Pte. Ltd. 

Provision of information technology 
services

100

100

8.

SCS Computer Systems Pte. Ltd.

Provision of information technology 
services

100

100

9.

Singapore Telecom International 
Pte Ltd

Holding of strategic investments and 
provision of technical and management 
consultancy services

100

100

10.

SingNet Pte Ltd

Provision of internet access and pay 
television services

100

100

11.

Singtel Innov8 Ventures Pte. Ltd.

Provision of fund management services

100

100

237

Notes to the Financial StatementsFor the financial year ended 31 March 2018 
42.1 

Significant subsidiaries incorporated in Singapore (Cont’d)

Name of subsidiary 

Principal activities

12.  Singtel Mobile Singapore Pte. Ltd.

Operation and provision of cellular 
mobile telecommunications systems 
and services, and sale of 
telecommunications equipment

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

100

100

13.

ST-2 Satellite Ventures 
Private Limited 

Provision of satellite capacity for 
telecommunications and video 
broadcasting services

61.9

61.9

14.

Sembawang Cable Depot Pte Ltd

Provision of storage facilities for 
submarine telecommunication cables 
and related equipment

60

60

15.

Singtel Digital Media Pte Ltd 

Development and management of 
on-line internet portal

100

100

16.

SingtelSat Pte Ltd

17.

Telecom Equipment Pte Ltd 

Provision of satellite capacity for 
telecommunications and video 
broadcasting services

100

100

Engaged in the sale and maintenance of 
telecommunications equipment, 
and mobile finance services

100

100

18.

Trustwave Pte. Ltd.

Provision of information security 
services and products

98

98

All companies are audited by Deloitte & Touche LLP.

238

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
42.2 

Significant subsidiaries incorporated in Australia

Name of subsidiary 

Principal activities

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

1.

2.

3.

4.

Amobee ANZ Pty Ltd

Provision of digital marketing services

100

100

Alphawest Services Pty Ltd (1)

Provision of information technology 
services

100

100

Ensyst Pty Limited

Provision of cloud services

100

100

NCSI (Australia) Pty Limited

Provision of information technology 
services

100

100

5.

Optus Administration Pty Limited (1)

Provision of management services to the 
Optus Group

100

100

6.

7.

Optus ADSL Pty Limited (1) 

Provision of carriage services

100

100

Optus Billing Services Pty Limited (*) (1)

Provision of billing services to the Optus 
Group

100

100

8. 

Optus C1 Satellite Pty Limited (1)

C1 Satellite contracting party

100

100

9.

Optus Content Pty Limited (1)

Provision of digital content acquisition

100

100

10. Optus Data Centres Pty Limited (1)

Provision of data communication services

100

100

11. Optus Fixed Infrastructure 

Provision of telecommunications services

100

100

Pty Limited (1)

12. Optus Insurance Services Pty Limited 

Provision of handset insurance and related 
services

100

100

13. Optus Internet Pty Limited (1)

Provision of services over Hybrid Fibre 
Co-Axial network and National Broadband 
Network

100

100

14. Optus Mobile Pty Limited (1)

Provision of mobile phone services

100

100

15. Optus Networks Pty Limited (1)

Provision of telecommunications services

100

100

239

Notes to the Financial StatementsFor the financial year ended 31 March 201842.2 

Significant subsidiaries incorporated in Australia (Cont’d)

Name of subsidiary 

Principal activities

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

16. Optus Satellite Pty Limited (1)

Provision of satellite services to customers

100

100

17. Optus Systems Pty Limited (1)

Provision of information technology 
services to the Optus Group

100

100

18. Optus Vision Media Pty Limited (*) (2)

Provision of broadcasting related services

20

20

19. Optus Vision Pty Limited (1)

Provision of telecommunications services

100

100

20. Optus Wholesale Pty Limited (1)

Provision of services to wholesale 
customers

100

100

21.

Prepaid Services Pty Limited (1)

Distribution of prepaid mobile products

100

100

22.

Reef Networks Pty Ltd (1) 

Operation and maintenance of fibre optic 
network between Brisbane and Cairns

100

100

23.

TWH Australia Pty. Ltd.

Provision of information security services 
and products

98

98

24.

Uecomm Operations Pty Limited (1)

Provision of data communication services

100

100

25.

Virgin Mobile (Australia) Pty Limited (1) 

Provision of mobile phone services

100

100

26.

Vividwireless Group Limited (1)

Provision of wireless broadband services

100

100

All companies are audited by Deloitte Touche Tohmatsu, Australia, except for those companies denoted (*) where 
no statutory audit is required.

Notes:
(1) 

These  entities  are  relieved  from  the  Australian  Corporations  Act  2001  requirements  for  preparation,  audit  and  lodgement  of  financial 
reports pursuant to ASIC Class Order 2016/785 (as amended) dated 30 March 2007.

(2)  Optus Vision Media Pty Limited is deemed to be a subsidiary by virtue of control.

240

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
42.3 

Significant subsidiaries incorporated outside Singapore and Australia

Name of subsidiary

Principal activities

Country of 
incorporation/
operation

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

1.

Amobee EMEA Limited

Provision of digital marketing 
services

United Kingdom

100

100

2.

Amobee, Inc. 

Provision of digital marketing 
services

USA

100

100

3.

Amobee Ltd

Research and development 
centre

Israel

100

100

4.

Breach Security, Ltd.

Provision of information security 
services and products

Israel

98

98

5.

GB21 (Hong Kong) Limited 

Provision of telecommunications 
services and products

Hong Kong

100

100

Global Enterprise 
International Malaysia 
Sdn. Bhd.

Provision of data communication 
and value added network 
services

Malaysia

100

100

HOOQ Digital (India) 
Private Limited

Provision of over-the-top video 
services and related activities 
and services

India

65

65

HOOQ Digital Mauritius 
Private Limited

Content operations and 
procurement

Mauritius

65

65

6.

7.

8.

9.

HOOQ Digital 
(Philippines) Inc.

10.

HOOQ Digital (Thailand) 
Company Limited

Provision of market research, 
sales and marketing support 
services

Provision of market research, 
sales  and marketing support 
services

Philippines

65

65

Thailand

65

65

11.

Lanka Communication 
Services (Pvt) Limited 

Provision of telecommunications 
services

Sri Lanka

82.9

82.9

12. M86 Security 

International, Ltd.

Provision of information security 
services and products

United Kingdom

98

98

241

Notes to the Financial StatementsFor the financial year ended 31 March 201842.3 

Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)

Name of subsidiary

Principal activities

Country of 
incorporation/
operation

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

13. M86 Security Israel, Ltd.

Provision of information security 
services and products

Israel

14.

NCS Information Technology 
(Suzhou) Co., Ltd. (2)

Software development and 
provision of information 
technology services

98

98

100

100

100

100

People’s 
Republic of 
China

People’s 
Republic of 
China

Hong Kong

100

100

Malaysia

100

100

Provision of information 
technology research and 
development, and other 
information technology related 
services

Provision of information 
technology services

Provision of information 
technology services

Provision of information 
technology and communication 
engineering services

Philippines 

100

100

Provision of system integration, 
software research and 
development and other 
information technology related 
services

People’s 
Republic of 
China 

100

100

15.

NCSI (Chengdu) Co., Ltd (2)

16.

NCSI (HK) Limited 

17.

NCSI (Malaysia) Sdn Bhd

18.

NCSI (Philippines) Inc. 

19.

NCSI (Shanghai), 
Co. Ltd (2)

20.

SCS Information Technology 
Sdn Bhd

21.

Singtel Global Private Limited

Consultancy, sale of computer 
equipment and software 
including provision of marketing, 
maintenance and other related 
services

Provision of infotainment 
products and services, and 
investment holding  

Brunei

100

100

Mauritius

100

100

242

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 201842.3 

Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)

Name of subsidiary

Principal activities

Country of 
incorporation/
operation

22.

Singtel Global India 
Private Limited 

Provision of telecommunications 
services and all related activities

India

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

100

100

23.

Singtel Innov8 Ventures LLC

Provision of investment 
consulting services

USA

100

100

24.

25.

26.

Singapore Telecom Hong 
Kong Limited 

Provision of telecommunications 
services and all related activities 

Hong Kong

100

100

Singapore Telecom Japan 
Co Ltd 

Provision of telecommunications 
services and all related activities

Japan

100

100

Singapore Telecom 
Korea Limited

Provision of telecommunications 
services and all related activities

South Korea

100

100

27.

Singapore Telecom USA, Inc. 

Provision of telecommunications, 
engineering and marketing 
services

USA

100

100

28.

Singtel (Europe) Limited 

Provision of telecommunications 
services and all related activities

United Kingdom

100

100

29.

Singtel Taiwan Limited 

Provision of telecommunications 
services and all related activities

Taiwan

30.

STI Solutions (Shanghai) 
Co., Ltd

Provision of telecommunications 
services and all related activities

People’s 
Republic of 
China

100

100

100

100

31.

Sudong Sdn. Bhd.

Management, provision and 
operations of a call centre for 
telecommunications services

Malaysia

100

100

32.

Trustwave Canada, Inc.

Provision of information security 
services and products

Canada

98

98

33.

Trustwave Government 
Solutions, LLC

Provision of information security 
services and products

USA

98

98

243

Notes to the Financial StatementsFor the financial year ended 31 March 201842.3 

Significant subsidiaries incorporated outside Singapore and Australia (Cont’d)

Name of subsidiary

Principal activities

Country of 
incorporation/
operation

34.

Trustwave Holdings, Inc. 

Provision of information security 
services and products

USA

Percentage of effective 
equity interest held 
by the Group

2018
%

98

35.

Trustwave Limited

Provision of information security 
services and products

United Kingdom

98

36.

Trustwave SecureConnect Inc. Provision of information security 

USA

98

services and products

37.

Turn Europe (UK) Limited

Provision of digital marketing 
services

United Kingdom

100

38.

Turn Inc.

Provision of digital marketing 
services

USA

100

All companies are audited by a member firm of Deloitte Touche Tohmatsu Limited. 

Notes:
(1)  The place of the business of the subsidiaries are the same as their country of incorporation, unless otherwise specified. 
(2)  Subsidiary’s financial year-end is 31 December.

2017
%

98

98

98

-

-

244

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
 
 
42.4 

Associates of the Group

Name of associate

Principal activities

Country of 
incorporation/
operation

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

1.

2359 Media Pte. Ltd. 

Development and design of 
mobile-based advertising

Singapore

28.6

28.6

2.

3.

APT Satellite Holdings 
Limited (2)

Investment holding 

Bermuda

20.3

20.3

APT Satellite International 
Company Limited (2)

Investment holding 

British Virgin 
Islands

28.6

28.6

4.

HOPE Technik Pte Ltd

Provision of high performance 
engineering solutions 

Singapore

21.3

21.3

5.

IGA Limited 

Provision of online digital 
advertising platform

Cayman Islands

22.1

22.1

6.

Intouch Holdings Public 
Company Limited (3)

7.

Kai Square 

Investment holding

Thailand

21.0

21.0

Provision of next generation 
cloud-based video surveillance 
services, monitoring and 
analytics

Singapore

39.2

39.2

8.

MassiveImpact 
International Ltd

Provision of performance based 
mobile advertising platform

British Virgin 
Islands

48.9

48.9

9. 

NetLink Trust (4)

To own, install, operate 
and maintain the passive 
infrastructure for Singapore’s 
Next Generation Nationwide 
Broadband Network    

Singapore

24.8

  100.0

10.           NetLink NBN Trust (4)

Investment holding    

Singapore

   24.8

         -

11.

Sentilla Corporation 

Provision of energy   
management services for data 
centres

USA

    31.0

   31.0 

245

Notes to the Financial StatementsFor the financial year ended 31 March 201842.4 

Associates of the Group (Cont’d)

Name of associate

Principal activities

12.

Singapore Post Limited (5)

13.

Viewers Choice Pte Ltd 

Operation and provision of 
postal, eCommerce logistics and 
retail services

Provision of services relating to 
motor vehicle rental and retail of 
general merchandise

Country of 
incorporation/
operation

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

Singapore

21.7

21.7

Singapore

49.2

49.2

Notes:
(1)  The place of business of the associates are the same as their country of incorporation.
(2)  The company has been equity accounted for in the consolidated financial statements based on results ended, or as at, 31 December 2017, 

the financial year-end of the company. 

(3)  Audited by Deloitte Touche Tohmatsu Jaiyos Audit Co. Ltd, Bangkok. 
(4)  Audited by Deloitte & Touche LLP, Singapore. Singtel ceased to own units in NetLink Trust following the sale to NetLink NBN Trust in July 
2017 but continues to have an interest of 24.8% in NetLink NBN Trust, the holding company of NetLink Trust. NetLink NBN Trust is regarded 
as an associate as Singtel does not have effective control in the trust.

(5)  Audited by Deloitte & Touche LLP, Singapore.

246

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 2018 
42.5 

Joint ventures of the Group

Name of joint venture

Principal activities

1.

Acasia Communications 
Sdn Bhd (3)

Provision of networking services 
to business customers operating 
within and outside Malaysia

2.

ACPL Marine Pte Ltd

3.

Advanced Info Service Public 
Company Limited (4) (5)

4.

ASEAN Cableship Pte Ltd

To own, operate and manage 
maintenance-cum-laying 
cableships

Provision of mobile, broadband,  
international telecommunications 
services, call centre and data 
transmission

Operation of cableships for 
laying, repair and maintenance 
of submarine telecommunication 
cables

Country of 
incorporation/
operation

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

Malaysia

14.3

14.3

Singapore

16.7

41.7

Thailand

23.3

23.3

Singapore

16.7

16.7

5.

6.

7.

8.

9.

ASEAN Telecom Holdings 
Sdn Bhd (3)

Investment holding 

Malaysia

14.3

14.3

Asiacom Philippines, Inc. (3)

Investment holding 

Philippines

40.0

40.0

Bharti Airtel Limited (6)  

Provision of mobile, long 
distance, broadband and 
telephony telecommunications 
services, enterprise solutions, 
pay television and passive 
infrastructure

India 

39.5

36.5

Bharti Telecom Limited (6) 

Investment holding 

India

48.9

47.2

Bridge Mobile Pte. Ltd. 

Provision of regional mobile 
services

Singapore

34.5

34.2

247

Notes to the Financial StatementsFor the financial year ended 31 March 201842.5 

Joint ventures of the Group (Cont’d)

Name of joint venture

Principal activities

10. Globe Telecom, Inc. (7) (8)

Provision of mobile, broadband, 
international and
fixed line telecommunications  
services

Country of 
incorporation/
operation

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

Philippines

21.5

21.5

11. Grid Communications 

Pte. Ltd. (3)

Provision of public trunk radio 
services

Singapore

50.0

50.0

12.

Indian Ocean Cableship
Pte. Ltd.

Leasing, operating and managing 
of maintenance-cum-laying 
cableship

Singapore

50.0

50.0

13.

International Cableship 
Pte Ltd

Ownership and chartering of 
cableships

Singapore

45.0

45.0

14. Main Event Television 

Pty Limited

Provision of cable television 
programmes 

Australia

33.3

33.3

15.

Pacific Bangladesh 
Telecom Limited 

16.

Pacific Carriage 
Holdings Limited (9) 

17.

PT Telekomunikasi Selular (10)

Provision of mobile 
telecommunications, broadband 
and data transmission services

Operation and provision of 
telecommunications facilities and 
services utilising a network of 
submarine cable systems

Provision of mobile 
telecommunications and related 
services

Bangladesh

45.0

45.0

Bermuda

39.99

39.99

Indonesia

35.0

35.0

18.

Radiance Communications 
Pte Ltd (3)

Sale, distribution, installation 
and maintenance of 
telecommunications equipment 

Singapore

  50.0

50.0

19.

Southern Cross Cables 
Holdings Limited (9) (11)

Operation and provision of 
telecommunications facilities and 
services utilising a network of 
submarine cable systems

Bermuda

39.99

39.99

248

Singapore Telecommunications Limited  |   Annual Report 2018Notes to the Financial StatementsFor the financial year ended 31 March 201842.5 

Joint ventures of the Group (Cont’d)

Name of joint venture

Principal activities

20.

Telescience Singapore 
Pte Ltd

Sale, distribution and installation 
of telecommunications and 
information technology 
equipment and services   

Country of 
incorporation/
operation

Percentage of effective 
equity interest held 
by the Group

2018
%

2017
%

Singapore

50.0

50.0

21.

VA Dynamics Sdn. Bhd. (3)

Distribution of networking cables 
and related products

Malaysia

49.0

49.0

Notes:
(1)  The place of business of the joint ventures are the same as their country of incorporation, unless otherwise specified. 
(2)  The Group holds substantive participating rights over the significant financial and operating decisions of the above joint ventures, which 

enables the Group to exercise joint control with the other shareholders. 

(3)  The company has been equity accounted for in the consolidated financial statements based on the results ended, or as at, 31 December 

2017, the financial year-end of the company.

(4)  Audited by Deloitte Touche Tohmatsu Jaiyos Audit Co. Ltd, Bangkok. 
(5)  This represents the Group’s direct interest in AIS. 
(6)  Audited by Deloitte Haskins & Sells LLP, New Delhi. The company has operations in India, Sri Lanka, and 14 countries across Africa. 
(7)  Audited by Navarro Amper & Co. (a member firm of Deloitte Touche Tohmatsu Limited).
(8)  The Group has a 47.1% effective economic interest in Globe.
(9)  The Southern Cross Cable Consortium operates through two separate companies. Southern Cross Cables Holdings Limited owns a cable 
network between Australia and the USA, with operations outside the USA. Pacific Carriage Holdings Limited has operations within the USA.

(10)  Audited by Purwantono, Sungkoro & Surja (a member firm of Ernst & Young).
(11)  Audited by KPMG, Bermuda. 

249

Notes to the Financial StatementsFor the financial year ended 31 March 2018The  aggregate  value  of  all  interested  person  transactions  during  the  financial  year  ended  31  March  2018  (excluding 
transactions less than S$100,000) were as follows -

Name of interested person

Aetos Security Management Pte Ltd

Ascendas - Singbridge Pte Ltd

Certis CISCO Auxiliary Police Force Pte Ltd

Fullerton Fund Management Company Ltd

Mapletree Investments Pte Ltd

MCN International Pte Ltd

Mediacorp Pte Ltd

Mediacorp VizPro International Pte Ltd

Nexwave Technologies Pte Ltd

Nucleus Connect Pte. Ltd.

PSA Corporation Ltd

Radiance Communications Pte Ltd

SDDA Pte Ltd 

Singapore Technologies Electronics Limited

SMM Pte Ltd

SMRT Services Pte. Ltd.

StarHub Cable Vision Ltd

StarHub Ltd

StarHub Mobile Pte Ltd

ST Electronics (Info-Security) Pte Ltd

Surbana Jurong Consultants Pte Ltd

S$ mil

 2.4 

 0.1 

 3.3 

 0.7 

 0.2 

 1.7 

 0.9 

 2.9 

 0.1 

 6.6 

 0.2 

 3.9 

 0.1 

 4.2 

 1.2 

 0.3 

 28.9 

 11.2 

 3.5 

 1.8 

 0.2 

 74.4 

250

Singapore Telecommunications Limited  |   Annual Report 2018Interested PersonTransactionsORDINARY SHARES

Number of ordinary shareholders

323,397

Voting rights:
On a show of hands – every member present in person and each proxy shall have one vote
On a poll – every member present in person or by proxy shall have one vote for every share he holds or represents 
(The Company cannot exercise any voting rights in respect of shares held by it as treasury shares or subsidiary holdings (1))

Note:
(1) 

“Subsidiary holdings” is defined in the Listing Manual to mean shares referred to in Sections 21(4), 21(4B), 21(6A) and 21(6C) of the Companies  
Act, Chapter 50 of Singapore.

SUBSTANTIAL SHAREHOLDERS

No. of shares

Direct
interest

Deemed
interest

Temasek Holdings (Private) Limited

8,132,818,602

415,011,767(1)

Note:
(1)  Deemed through interests of subsidiaries and associated companies.  

MAJOR SHAREHOLDERS LIST – TOP 20

No.

Name

No. of
shares held

% of issued
share capital (1)

Temasek Holdings (Private) Limited
Citibank Nominees Singapore Pte Ltd
DBS Nominees (Private) Limited
DBSN Services Pte Ltd
Central Provident Fund Board
HSBC (Singapore) Nominees Pte Ltd
Atrium Investments Pte Ltd
United Overseas Bank Nominees (Private) Limited
Raffles Nominees (Pte) Ltd
BPSS Nominees Singapore (Pte.) Ltd.
Societe Generale Singapore Branch
DB Nominees (Singapore) Pte Ltd
OCBC Nominees Singapore Private Limited

1
2
3
4
5
6
7
8
9
10
11
12
13
14 Maybank Kim Eng Securities Pte Ltd
OCBC Securities Private Ltd
15
Phillip Securities Pte Ltd
16
UOB Kay Hian Pte Ltd
17
18 Morgan Stanley Asia (Singapore) Securities Pte Ltd 
19 Merrill Lynch (Singapore) Pte Ltd
20

BNP Paribas Nominees Singapore Pte Ltd

 8,132,818,602 
 1,966,961,431 
 1,705,277,420 (2)
 987,327,995 
 842,949,906 
 612,565,383 
 385,581,351 
 236,173,687 
 196,333,123 
 130,362,240 
 36,296,624 
 34,230,868 
 30,118,421 
 24,750,597 
 16,705,675 
 15,047,593 
 10,879,016 
 10,728,985 
 10,187,942 
 8,229,085 
 15,393,525,944 

 49.81 
 12.05 
 10.44 
 6.05 
 5.16 
 3.75 
 2.36 
 1.45 
 1.20 
 0.80 
 0.22 
 0.21 
 0.18 
 0.15 
 0.10 
 0.09 
 0.07 
 0.07 
 0.06 
 0.05 
 94.27 

Notes:
(1) 

The  percentage  of  issued  ordinary  shares  is  calculated  based  on  the  number  of  issued  ordinary  shares  of  the  Company  as  at  23  May  2018, 
excluding 579,176 ordinary shares held as treasury shares as at that date.

(2)  Excludes 579,176 ordinary shares held by DBS Nominees (Private) Limited as treasury shares for the account of the Company.

251

Shareholder InformationAs at 23 May 2018 
ANALYSIS OF SHAREHOLDERS

Range of holdings

1 - 99

100 - 1,000

1,001 - 10,000

10,001 - 1,000,000

1,000,001 and above

No. of 
holders

% of 
holders

No. of 
shares

% of issued 
share capital

 2,857 

 239,047 

 66,772 

 14,665 

 56 

0.88

73.92

20.65

4.53

0.02

 116,070 

 59,794,679 

 243,347,135 

 543,637,553 

 15,482,262,863 

 323,397 

100.00

 16,329,158,300  

0.00

0.37

1.49

3.33

94.81

100.00

Note:
As at 23 May 2018, the Company had 579,176 treasury shares and no subsidiary holdings. Based on information available to the Company as at 23 May 2018, 
approximately 48% of the issued ordinary shares of the Company is held by the public and, therefore, Rule 723 of the Listing Manual issued by the Singapore 
Exchange Securities Trading Limited is complied with. The percentage of issued ordinary shares held by the public is calculated based on the number of issued 
ordinary shares of the Company as at 23 May 2018, excluding 579,176 ordinary shares held as treasury shares as at that date. The percentage of such treasury 
shares against the total number of issued ordinary shares (excluding ordinary shares held as treasury shares) is 0.004%.

SHARE PURCHASE MANDATE

At the 25th Annual General Meeting of the Company held on 28 July 2017 (2017 AGM), the shareholders approved the 
renewal of a mandate to enable the Company to purchase or otherwise acquire not more than 5% of the issued ordinary 
share capital of the Company as at the date of the 2017 AGM. As at 23 May 2018, there is no current on-market buy-
back of shares pursuant to the mandate.

252

Singapore Telecommunications Limited  |   Annual Report 2018Shareholder InformationAs at 23 May 2018BOARD OF DIRECTORS

OPTUS ADVISORY COMMITTEE

SINGTEL AMERICAN  
DEPOSITARY RECEIPTS

Citibank Shareholder Services 
PO Box 43077
Providence, Rhode Island 02940-3077
USA 
Tel: 1 877 248 4237
(Toll free within USA)
Tel: +1 781 575 4555 (Outside USA)
Email: citibank@shareholders-online.com
Website: www.citi.com/dr

AUDITOR 

Deloitte & Touche LLP
(appointed on 28 July 2006)
6 Shenton Way 
OUE Downtown 2
#33-00
Singapore 068809
Republic of Singapore 
Tel: +65 6224 8288
Fax: +65 6538 6166

Audit Partner: Philip Yuen Ewe Jin

INVESTOR RELATIONS

31 Exeter Road 
#19-00 Comcentre 
Singapore 239732
Republic of Singapore 
Tel: +65 6838 2123
Email: investor@singtel.com

Peter Mason AM (2) (Chairman)
Chua Sock Koong
David Gonski AC (3)
Simon Israel
Gail Kelly
John Morschel
Paul O’Sullivan

TECHNOLOGY ADVISORY PANEL

Venky Ganesan (Chairman)
Koh Boon Hwee 
Zorawar Biri Singh

ASSISTANT COMPANY 
SECRETARY

Lim Li Ching

REGISTERED OFFICE

31 Exeter Road
Comcentre 
Singapore 239732
Republic of Singapore 
Tel: +65 6838 3388
Fax: +65 6732 8428
Website: www.singtel.com 

SHARE REGISTRAR

M & C Services Private Limited
112 Robinson Road
#05-01
Singapore 068902
Republic of Singapore
Tel: +65 6228 0544 
Fax: +65 6225 1452
Email: annualreports@mncsingapore.com
Website: www.mncsingapore.com

Notes:
(1)  The information in this section is as at 

16 May 2018.

(2)  Member of the Order of Australia.
(3)  Companion of the Order of Australia.

Simon Israel (Chairman)
Gautam Banerjee
Bobby Chin
Chua Sock Koong (Group CEO)
Venkataraman (Venky) Ganesan
Low Check Kian
Peter Mason AM (2)
Christina Ong
Peter Ong
Teo Swee Lian

AUDIT COMMITTEE

Bobby Chin (Chairman)
Gautam Banerjee
Christina Ong
Peter Ong

CORPORATE GOVERNANCE 
AND NOMINATIONS COMMITTEE

Low Check Kian (Chairman)
Simon Israel
Christina Ong
Teo Swee Lian

EXECUTIVE RESOURCE AND 
COMPENSATION COMMITTEE

Peter Mason AM (2) (Chairman)
Simon Israel
Teo Swee Lian

FINANCE AND INVESTMENT 
COMMITTEE

Simon Israel (Chairman)
Venky Ganesan
Low Check Kian

RISK COMMITTEE

Teo Swee Lian (Chairman)
Gautam Banerjee
Bobby Chin
Peter Ong

253

Corporate Information (1) 
SINGAPORE

Singtel Headquarters
31 Exeter Road, Comcentre
Singapore 239732
Republic of Singapore
Tel: +65 6838 3388
Fax: +65 6732 8428
Website: www.singtel.com

NCS Pte Ltd
5 Ang Mo Kio Street 62
NCS Hub, Singapore 569141
Republic of Singapore
Tel: +65 6556 8000
Fax: +65 6556 7000
Email: reachus@ncs.com.sg

AUSTRALIA

Singtel Optus Pty Limited Sydney
(Head Office)
Optus Centre Sydney
1 Lyonpark Road, Macquarie Park
NSW 2113, Australia
Tel: +61 2 8082 7800
Fax: +61 2 8082 7100
Website: www.optus.com.au

Adelaide
Level 4, 108 North Terrace
Adelaide, SA 5000, Australia
Tel: +61 87328 5114
Fax: +61 1800 500 261

Brisbane
Optus Centre Brisbane
Level 9, 15 Green Squareclose
Fortitude Valley, QLD 4006
Tel: +61 7 3304 7000
Fax: +61 7 3174 7087

Canberra
Level 3, 10 Moore Street
Canberra, ACT 2601, Australia
Tel: +61 2 6222 3800
Fax: +61 2 6222 3838

Darwin
Optus Centre Darwin
49 Woods Street
Darwin NT 0800, Australia
Tel: +61 8 8901 4500
Fax: +61 8 8901 4505

Melbourne
367 Collins Street
Melbourne, VIC 3000, Australia
Tel: +61 3 9233 4000
Fax: +61 3 9233 4900

Perth
Optus Centre Perth
Level 3, 2 Victoria Avenue
Perth, WA, 6000
Tel: +61 8 9288 3000
Fax: +61 8 9288 3030

BANGLADESH

Dhaka
Singapore Telecommunications
Limited (Bangladesh Liaison Office)
Bay’s 50, 15th Floor, South Block
50 Mohakhali
Dhaka 1212, Bangladesh
Tel: +880 2 883 5120
Fax: +880 2 988 0037
Email: SGOBLDSH@singtel.com

CHINA

Beijing
Unit 1503, Beijing Silver Tower 2
Dongsanhuanbei Road
Chaoyang District, Beijing 100027
People’s Republic of China
Tel: +86 10 6410 6193 / 4 / 5
Fax: +86 10 6410 6196
Email: singtel-beij@singtel.com

Guangzhou
Room 3615, 36F, BLK B, China Shine
No.9, Lin He Xi Road
Tian He District, Guangzhou 510610
People’s Republic of China
Tel: +86 20 3886 3887
Fax: +86 20 3882 5545

Shanghai
Unit 707, 7F, KIC Plaza No 333
Song Hu Road, Shanghai 200433
People’s Republic of China
Tel: +86 21 3362 0388
Fax: +86 21 3362 0389
Email: singtel-sha@singtel.com

EUROPE

Frankfurt
Platz der Einheit 1
60327 Frankfurt am Main, Germany
Tel: +49 69 975 03 445
Fax: +49 69 975 03 200
Email: singtel-germany@singtel.com

London
Birchin Court
20 Birchin Lane
London EC3V 9DU
United Kingdom
Tel: +44 20 7122 8000
Fax: +44 20 7122 8088
Email: singtel-uk@singtel.com

HONG KONG

Quarry Bay
21/F, 1063 King’s Road
Quarry Bay, Hong Kong
Tel: +852 2877 1500
Fax: +852 2802 1500
Email: singtel-hk@singtel.com

INDIA

Bangalore
Suite No.304 DBS Business Centre
26 Cunningham Road
Bangalore 560052, India
Tel: +91 80 2226 7272
Fax: +91 80 2225 0509
Email: singtel-ind@singtel.com

Chennai
20/30, Paras Plaza
3rd Floor, Cathedral Garden Road
Nungambakkam
Chennai 600034, India
Tel: +91 44 4264 9410
Fax: +91 44 4264 9414
Email: singtel-ind@singtel.com

Hyderabad
Reliance Business Centre
303 Swapna Lok Complex
92 Sarojini Devi Road
Secunderabad 500003, India
Tel: +91 40 2781 2699
Fax: +91 40 2781 2724
Email: singtel-ind@singtel.com

254

Singapore Telecommunications Limited  |   Annual Report 2018Contact PointsMumbai
301-303, 3rd Floor, Midas
Sahar Plaza Complex
Mathuradas Vasanji Road,
Andheri East
Mumbai 400059, India
Tel: +91 22 2824 4999 /
+91 22 4075 7777
Fax: +91 22 2824 4996
Email: singtel-ind@singtel.com

New Delhi
5th Floor, A Wing, Statesman House
148 Barakhamba Road
New Delhi 110001, India
Tel: +91 11 4152 1199 /
+91 11 4362 1199
Fax: +91 11 4152 1683
Email: singtel-ind@singtel.com

INDONESIA

Jakarta
Noble House, 9th Floor
Jl. Dr. Ide Anak Agung Gde Agung
Kav. E 4.2 No. 2
Jakarta 12950, Indonesia
Tel: +62 21 2978 3058
Email: singtel-ina@singtel.com

JAPAN

Tokyo
Meguro Central Square
8F, 3-1-1 Kamiosaki
Shinagawa-ku Tokyo
141-0021 Japan
Tel: +81 3 5795 1077
Fax: +81 3 5795 1088
Email: singtel-jpn@singtel.com

Osaka
3F Shin-Osaka Hankyu Building
1-1-1 Miyahara
Yodogawa-ku
Osaka 532-0003, Japan
Tel: +81 6 7668 8417
Email: singtel-jpn@singtel.com

255

KOREA

THAILAND

Seoul
Room 3501, Trade Tower
511, Yeongdong-daero, Gangnam-gu
Seoul 06164, Korea
Tel: 82 2 3287 7500
Fax: 82 2 3287 7589
Email: singtel-kor@singtel.com

Bangkok
9th Floor, Unit 6
500 Amarin Tower
Ploenchit Road, Lumpini Pathumwan
Bangkok 10330, Thailand
Tel: +66 2 256 9875 / 6
Fax: +66 2 256 9808
Email: sophida@singtel.com

USA

San Francisco (Head Office)
950 Tower Lane
Suite 2050
Foster City, CA 94404, USA
Tel: +1 650 508 6800
Fax: +1 650 508 1578
Email: singtel-usa@singtel.com

Chicago
8770 West Bryn Mawr Avenue
Suite 1314
Chicago, IL 60631, USA
Tel: +1 773 867 8122
Fax: +1 773 867 8121
Email: singtel-usa@singtel.com

New York
140 Broadway
Suite 2110
New York, NY 10015, USA
Tel: +1 212 269 7920
Fax: +1 212 269 7939
Email: singtel-usa@singtel.com

MALAYSIA

Kuala Lumpur
602B, Level 6, Tower B, Uptown 5
5, Jalan SS21/39, Damansara Up-
town
47400 Petaling Jaya
Selangor Darul Ehsan, Malaysia
Tel: +603 7728 2813
Fax: +603 7727 6186
Email: sgomals@singtel.com

MIDDLE EAST

Dubai
Dubai Internet City Building #1
#1 Floor, #110
P O Box 502430
Dubai, United Arab Emirates
Tel: +971 4363 6705
Fax: +971 4361 1063
Email: g-singtel-me@singtel.com

PHILIPPINES

Manila
Unit 1504, Liberty Center
104 H V de la Costa Street
Salcedo Village, Makati City 1227
Philippines
Tel: +63 2 887 2791
Fax: + 63 2 887 2763
Email: singtel-phil@singtel.com

TAIWAN

Taipei
2F, No 290, Section 4
Chung Hsiao East Road, Taipei
Taiwan, Republic of China
Tel: +886 2 2741 1688
Fax: +886 2 2778 6083
Email: singtel-twn@singtel.com

Contact PointsSINGAPORE TELECOMMUNICATIONS LIMITED
(CRN:199201624D)
31 Exeter Road 
Comcentre 
Singapore 239732

T +65 6838 3388     
F +65 6732 8428
www.singtel.com

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