Second Reading Speech by Minister of State for Health, Dr Lam Pin Min on the Kwong-Wai-Shiu Free Hospital (Transfer of undertaking and Dissolution) Bill, 10 January 2017

INTRODUCTION

1.     Madam Speaker, before I start my speech, I would like to acknowledge Mr Patrick Lee, Chairman of Kwong Wai Shiu Hospital, Mr Leong Sin Yuen, Board member of Kwong Wai Shiu Hospital, and Dr Ow Chee Chung, CEO of Kwong Wai Shiu Hospital, who are here with us today to witness the deliberations on the Kwong-Wai-Shiu Free Hospital (Transfer of Undertaking and Dissolution) Bill.

BACKGROUND AND JUSTIFICATIONS FOR THE BILL

2.     Madam Speaker, the Kwong-Wai-Shiu Free Hospital (or “Kwong Wai Shiu” for short), was established in 1910 under the Kwong-Wai-Shiu Hospital Ordinance (“the Ordinance”) to provide needy immigrants from the Kwong-Chau, Wai-Chau and Shiu-heng prefectures of the Canton Province of China with free healthcare. Since its establishment, Kwong Wai Shiu has played an important role in providing quality care to patients in Singapore. It has expanded the scope of its services significantly over the years, and currently operates a nursing home, a senior care centre, a Traditional Chinese Medicine Centre, and provides home care services. 

3.     Demand for healthcare services is expected to grow as a result of Singapore’s rapidly ageing population. Not only do we need to add capacity, especially in the Intermediate and Long Term Care (“ILTC”) sector, we will also need to build up strong providers to deliver affordable, quality care. Service providers like Kwong Wai Shiu will have an increasingly important role to play in serving needy patients and leading the way to innovative solutions. To better position itself to meet the future challenges, Kwong Wai Shiu is expanding its capacity and capability.

• Kwong Wai Shiu is doubling its capacity at its current Nursing Home with the redevelopment and expansion of its facility at this site. The new Nursing Home, which will also house a Senior Care Centre, will be completed later this year. When fully opened, it will have more than 600 beds and will be the largest nursing home facility in Singapore.

• Kwong Wai Shiu’s upcoming Active Ageing Hubs in the vicinity of its current Nursing Home will also support our seniors to age in place. The Active Ageing Hub is a new concept we are trying out as part of the Action Plan for Successful Ageing. It is a one-stop centre for our seniors, where they can participate in active ageing programmes, and receive care services at the same place if needed. The centre can also provide assisted living services such as housekeeping and grocery shopping to seniors living nearby. 

4.     As Kwong Wai Shiu enhances its services and infrastructure to cater to the changing health needs of our population, it will need to keep up with the times and ensure the hospital is well-positioned to support its mission to serve all Singaporeans. It is thus timely for Kwong Wai Shiu to review its organisational framework, which is currently set out in the Ordinance, and modernise its corporate and governance structure.

5.     The Kwong Wai Shiu management therefore sought MOH’s support to repeal the Ordinance, and establish the hospital as a Company Limited by Guarantee (or “CLG”) similar to other Voluntary Welfare Organisations (or “VWOs”), for the following reasons.

6.     First, the current Ordinance has not been substantively amended since its enactment. As a result, its provisions have become antiquated, and are impeding Kwong Wai Shiu’s development and growth as a modern healthcare provider. For example, before Kwong Wai Shiu can dispose of any immovable property, it is currently required to first seek the leave of the High Court, and serve the application on the Attorney-General. This unduly hampers Kwong Wai Shiu’s ability to efficiently manage and control its assets and property to respond to the changing needs of Singapore and ensure that the hospital’s activities remain relevant and viable. In comparison, assets of modern charities and IPCs are usually governed by their boards, and these charities and IPCs are not required to routinely obtain the leave of the High Court and to serve the application on the Attorney-General when disposing of their immoveable property.

7.     Another example is the requirement for Kwong Wai Shiu to follow the Chinese Lunar Calendar for the submission of its accounts to the “Secretary of Chinese Affairs”, a position which no longer exists today.

8.     Second, the Kwong Wai Shiu management wanted to improve and strengthen KWSH’s overall governance and corporate accountability framework. The Ordinance is not fully compatible with the guidelines recommended in the Code of Governance for Charities and IPCs. For example, the Ordinance does not include guidelines pertaining to board governance, as well as the avoidance of conflicts of interests.

9.     As a CLG, Kwong Wai Shiu will be governed by a constitution which contains such guidelines. This will ensure that Kwong Wai Shiu will continue to operate in a sound manner, and assure its donors and members and the public that its funds and assets are responsibly managed.

10.     Last, and most fundamentally, the Ordinance limits the scope of Kwong Wai Shiu’s operations and beneficiaries. The Ordinance restricts Kwong Wai Shiu’s role to providing hospital services for “indigent persons connected with the Kwong-Chau, Wai-Chau and Shiu-heng prefectures of the Canton Province of China”, hence the name “Kwong Wai Shiu Hospital”.

11.     In reality, Kwong Wai Shiu has gone beyond this limited scope and has long been serving the general public, regardless of race, religion and dialect. The breadth of Kwong Wai Shiu’s current activities is worthy and welcomed, and it is opportune that the formal limitations imposed by the Ordinance are removed in support of its noble and beneficial activities.

KEY FEATURES OF THE BILL

12.     Madam Speaker, I shall now highlight the main features of The Kwong-Wai-Shiu Free Hospital (Transfer of Undertaking and Dissolution) Bill – hereby referred to as the Kwong Wai Shiu Bill. The Kwong Wai Shiu Bill will allow Kwong Wai Shiu to modernise and strengthen its corporate structure and provide flexibility in managing its assets and operations. The CLG, named “Kwong Wai Shiu Hospital”, was incorporated last year and has been registered as a Charity and obtained IPC status as of 18 July 2016. The Commissioner of Charities, and specifically, the Ministry of Health as the Sector Administrator for healthcare charities and IPCs, have been identified as the supervisory regulatory authority for Kwong Wai Shiu.

13.     The Bill will transfer all the assets, rights, and liabilities of Kwong Wai Shiu to the new CLG. The new CLG will be governed by the Companies Act. A new constitution has been established for the CLG, under which there are clear guidelines for governance and the avoidance of conflicts of interest. A board of directors will oversee the management of the CLG.

14.     As a result of the modernisation, Kwong Wai Shiu will have greater flexibility to expand its charitable activities, thereby further benefitting the broader community and public.

15.    The transfer will take place after the Kwong Wai Shiu Bill comes into force. Upon the transfer, all records, legal rights, and obligations of the former Kwong Wai Shiu will be transferred to, and assumed by, the CLG. This includes staff employment – the continuity of the staff’s employment, and the terms and conditions of their service, will not be affected by the transfer to the CLG. Likewise, Kwong Wai Shiu’s rights, powers, duties, and liabilities as an employer will be transferred to the CLG. As such, the Kwong Wai Shiu Bill will not have any adverse impact on Kwong Wai Shiu’s employees. Kwong Wai Shiu has also engaged its union – the Manual and Mercantile Workers’ Union - and I understand that the union is supportive of the new corporate structure. Kwong Wai Shiu has also engaged its internal stakeholders including employees and board members. 

16.     I would also like to highlight that the hospital’s operations will not be affected and patients are unlikely to experience any inconvenience or any adverse changes as a result of the transition.

CLOSING

17.     Madam Speaker, I will now conclude. The objective of the Kwong Wai Shiu Bill is to support Kwong Wai Shiu to modernise its corporate structure, and place the hospital in a stronger position with greater flexibility to provide healthcare services to Singaporeans, while ensuring transparency and accountability. I hope that Members will support the Bill.

18.    Madam Speaker, I beg to move.