Whither Singapore’s Secularism? Note to the Ministry of Law

Singaporeans often speak dismissively about the legal privileges bestowed upon the Bumiputra population in Malaysia. Less is said about the denial of certain legal rights to Singapore's Muslim population by Singapore's own legal framework.

The Administration of Muslim Law Act (AMLA) empowers the Islamic Religious Council of Singapore (MUIS) to interpret Islamic law or Sharia on behalf of all Singaporean Muslims.

Subsequently, all Muslims are compelled to adhere to the provisions of Sharia via AMLA. While there may be a (complicated) legal process for exempting Muslims who do not adhere to the Islamic school of law professed by MUIS, it is discouraged by MUIS. (Yes, I have been in contact with MUIS.)

It should be noted that there are several main schools of law within the Sharia. In Pakistan, the orthodox school of law is different from the school to which Malays generally subscribe. Additionally, AMLA is geared towards Sunni Muslims. Shia Muslims may have their own grievances with AMLA.

AMLA deals primarily with family law, including inheritance, marriage and divorce. Several provisions of AMLA contradict sections of Singapore civil law.

Muslims are not permitted to leave a Will. Upon a Muslim's death, his assets are distributed in accordance with AMLA's interpretation of the Sharia. Writing a Will is a simple right available to all non-Muslim Singaporeans.

AMLA permits polygamy and specifies guidelines for divorce. Polygamy blatantly contradicts the Singapore Women's Charter while the divorce guidelines are controversial. Feminists have issues reconciling AMLA with the Women's Charter.

Recently, the Straits Times had an opinion piece on the controversial Malaysian cleric Dr. Mohd Asri Zainul Abidin. The article provided a window for me to publicize my views on inheritance within AMLA to a broader audience.

After some deliberation, the Straits Times chose not to publish the letter. It was determined that a Muslim has several 'legally creative' ways, including establishing a trust, to manage the inheritance process to his liking.

Perhaps the decision has more to do with maintaining the status quo than with other considerations.

I respect the decision by the Straits Times but do not agree with their logic.

My logic is simple. Under civil law I should have the right to leave a Will. I should not be subject to religious law in a secular state governed by civil law.

Under civil law, I can follow a 'religiously guided' lifestyle if I so desire. Due to the provisions of AMLA, I am unable to excuse myself from their interpretations of Sharia unless I renounce my religion or go against the spirit of the law. Conversely, under religious law I am unable to follow my personal conscience.

The implementation of Sharia or Islamic law is controversial, especially in a religion which does not have a formal, institutionalized clergy structure

My original letter to the Straits Times and a discussion of possible alternatives is reproduced below.

To the Editor:

Mr. Farish Noor's article [November 20, 2009], "Cleric's case a test for moderate Malaysia" is a timely reminder of the benefits of Singapore's secular state structure.

The author writes, "... The heart of the matter is the question of who has the right to speak on Islam and Islamic matters ... Islam does not have a clergy or priestly class."

The same question is valid in the Singapore context.

The Islamic Religious Council of Singapore (MUIS) has ably guided Singapore's Muslims to integrate within a modern multi-religious society. However, in essence, MUIS is a religious clergy which claims to speak for all Singapore's Muslims. (MUIS adheres to a specific school of thought within Islamic law.)

Singaporean Muslims are bound to a parallel legal system created by the Administration of Muslim Law Act (AMLA). AMLA obliges Singaporean Muslims to order parts of their lives in line with the guidelines laid down by MUIS.

In effect, MUIS is empowered to compel Singaporean Muslims to adhere to its interpretations of Islamic law.

Take the matter of the distribution of a Muslim's estate following his death.

Singaporean Muslims are denied the freedom to write a Will for more than one third of their assets. Under AMLA, the remaining two thirds of a Muslim's assets are forcibly divided among inheritors based on MUIS' interpretation of Islamic law.

Practically speaking, this means that if a Muslim wishes to leave his entire wealth to a spouse, mother or charity that is not legally permissible.

Singaporean Muslims, as citizens of secular republic, should have the same rights and privileges as all Singaporeans. Singapore's legal framework should provide Muslims the freedoms to order personal affairs in accordance with their own conscience.

These entitlements include choosing heirs to bequeath one's wealth and life savings. Islamic religious traditions may provide recommended guidelines but should not be legally binding.

Singapore's Muslims deserve all rights due to them under the civil laws of the republic, without any exceptions.

Sincerely,

Imran Ahmed

A discussion on the use of alternative legal routes to achieve the objective which a Will attains:

1. A trust structure is the cleanest and most reliable solution but creating a (reliable) Trust can be quite costly. A trust also required an annually recurring cost which can be in the SGD thousands each year. Costs and complications which non-Muslims do not have to bear;

2. Technically, one can avoid Singapore laws claim to assets by placing them in an offshore domicile, e.g. Jersey, Luxembourg, etc. Again a solution which is operationally intensive and with its own costs, especially for a normal middle class individual, who does not have assets numbering in the millions;

3. The 'either/or' or 'survivor' route for bank accounts and other assets has complications which a Will avoids. If I maintain a bank account jointly with proposed heirs there is no way I can decree what percentage of account's assets go to which survivor. The complexities increase when we refer to fixed assets which may be problematic in valuing. A Will allows specific allocations without any questions;

4. Operationally, establishing a bank account with joint owners in several domiciles (as in my case) poses other problems. It requires each party to undertake a painful process of account opening through notarization and attestations. Especially for a senior parent in her late 70s this is an unnecessary pain - a Will avoids the pain. Further, maintaining joint accounts with an individual subject to taxes in another jurisdiction (e.g. the United Kingdom) has serious tax implications for that individual which are best avoided. A Will avoids a possible increase in annual tax liability for a UK taxpayer;

5. Finally, one must always consider the possibility that an AMLA decreed heirs (e.g. a male first cousin) may dispute the ownership of assets that take place outside of Islamic law. While I am confident that Singapore civil law will ultimately prevail and the ownership may not be overturned, it may prove to be a costly, painful and lengthy legal process (especially for individuals / owners who do not normally reside in Singapore).

Legal creativity is an option, especially for the ultra-wealthy. For normal middle class individuals like me it may not be as easy. Contrived legal solutions have their own potential landmines.

Most importantly, to view the issue of AMLA and Wills in the above perspective misses the forest for the trees. The fact remains that Muslims are compelled to adhere to religious law in Singapore (of a specific school of thought); a fact which denies Muslims the right to bequeath assets through a simple, cheap and clean solution - a solution available to all non-Muslim Singaporeans.

Immigration: what happens to the second generation?

Five foreigners were arrested in Sargodha, Pakistan yesterday. Allegedly, they are members of a banned Islamic terrorist outfit. The incident raises broader questions about the integration of second generation immigrants into foreign societies.

Clearly, there is something unusual about five Americans turning up in Sargodha. It is unlikely they just wished to try the region's oranges. After attacks on Pakistan's army and navy headquarters, it might have been the air force's turn to face the ire of Islamic extremists.

In Pakistan, Sargodha is known for only two things: oranges and the country's largest air force base. The city also houses the air force's elite Combat Commanders School which trains fighter pilots in tactics and weapons.

It is not the first instance of Europeans and Americans supporting extremist Islam. Some may remember the 'American Taliban,' John Walker Lindh. French North Africans and British South Asians have also been involved in acts of terrorism in their adopted countries.

What drives the products of Western social systems and structures to vent their frustration in such an extreme manner? The majority of the disaffected youth are moulded by the school systems of their adopted countries. Some are university graduates from prestigious universities. Some even obtained military training courtesy of the US army.

Theoretically, these young people have the same economic opportunities as any French or British citizen.

It is easy to point the finger at Pakistan. Pakistan is a convenient flogging horse in the war against Islamic extremism. Pakistan is the cauldron where Islam is currently fighting its most extreme and bloody ideological battle. Naturally, these extremists gravitate to Pakistan and Afghanistan.

But more often than not, the radicalization of these Western youth takes place prior to their travels to Pakistan / Afghanistan. It is because of their radicalization that these individuals seek 'specialization' and travel to the region.

It is one thing spouting ideological nonsense on the internet or media, especially in Western societies where freedom of speech is sacrosanct and has no bounds. It is quite another to move from radical thought to direct action, including terrorist training and suicide bombings.

It is not normal. Clearly, there are issues of alienation at play.

Estranged French youth of North African descent do not attack police stations and burn cars in Parisian suburbs to vent frustrations about French foreign policy. Similarly, it is no coincidence that British Asians tend to have unemployment rates far higher than the national average.

Immigrant populations, whether in Singapore or France, have an obligation to integrate into their new homes. The funny thing is that the first generation generally integrates without too many issues.

It is the second generation which appears to suffer from an identity crisis. In today's environment, fed by real life Hollywood style violence on the daily news, some turn to extreme measures to vent their frustration.

Let us not forget that many of these Westerners are as Egyptian or Yemeni as the average Singaporean can claim to be from mainland China.

Western sociologists have their work cut out. Unfortunately, the only people concerned with disgruntled European Muslims are the police. (The Swiss government seemed concerned but the broader population not.)

A mosque (and house) on the outskirts of Amsterdam, Netherlands

The old Hindu Sadhu or holy man, Goda, from whom Sargodha's name derives, must certainly be wondering what's happening in his otherwise serene orchard city.

PS – Admittedly, many of my statements above are not based on hard empirical data which a true academic would certainly 'mine' to support his arguments. However, I did feel the need to share my opinion and hopefully get you to think about Muslim immigrants in Western society through a different perspective. It will be nice to hear from you, whether you agree or disagree!

Dubai – is it flu or a cardiac arrest?

Everyone needs a rest from time to time. Even cities need a break.

Dubai was a city on steroids during the last decade. On doctor's orders, it is in the midst of a breather. Without this lull, the city may have suffered a serious cardiac arrest and be out of business for some time.

I just paid a short visit to Dubai. It was my first trip to Dubai since returning to Singapore in June 2009.

My flight bookings were confirmed one and a half days prior to my departure. In the past, flights to and from Singapore required reservations weeks in advance. There were empty seats on my flights, another unusual sight.

The airport formalities were a breeze. No long queues at the immigration counter. No need to rush to the counters and try and sneak into a 'fast track' immigration lane. Dubai airport seemed almost as efficient as Singapore!

But the real shocker came on Dubai's roads. It was like being in a Dubai of yesteryear. One could travel from Sheikh Zayed Road, the city's main drag, to the airport in under twenty minutes (during peak evening hours), a journey which normally required over one hour in the good old days.

Dubai is not a ghost town. It is a success story.

Luxury hotels have an 80% or more occupancy rate, albeit at much lower average room rates. The cars on the road are fancy. Passenger planes representing many airlines were parked at Dubai airport. All nature of languages can be heard while walking around the city.

It was the Dubai spirit which was a bit distraught. The city has lost its footing and its residents are disoriented.  Dubai's residents are suffering from trauma brought about by the shellshock of financial meltdown.

It does not help that the local media is mum about Dubai World's financial crisis. The UAE press is owned by the private sector, but that does not mean domestic reporting is aggressive. (Singapore government please take note and allow meaningful private sector participation in the media.)

Few news reports pointed out that Dubai World has lost the prestigious W Hotel in New York. A property which the firm's private equity arm purchased in 2006 for USD 282 million was sold for USD two million at a foreclosure auction on December 8.

The go-go years are over. Many now see the hitherto successful Dubai model as a textbook example of 'how not to develop.' Economists and political scientists will dissect Dubai's rise and fall for many years to come.  

Yes, it borrowed too much money. Foreign banks were major creditors and forgot to read the fine print when lending the money.  These foreign banks are too used to being bailed out by government funds. Unfortunately for the banks, Abu Dhabi did not establish a TARP fund to make good their bad loans.

Yes, Dubai represents some of the greatest excesses of the last decade. It has a ski slope inside a mall; a swimming aquarium in another mall. You can watch in amazement as a mechanism costing a few hundred million dollars shoots water to the sky – a mechanism normally called a water fountain!

However, will tennis stars stay away from the annual Dubai Open? Tiger Woods (for personal reasons) may not grace the 2010 Dubai Golf World Championship but most other golfers will be there. Tourists, especially from South Asia and the Arab world, will continue to flock to Dubai's five star hotels and shopping malls – the temples of the modern world.

I could go on with reasons why Dubai is a modern day success story.

I once heard someone in Abu Dhabi say, "My grandfather rode a camel to move around in the desert. So what's wrong if my grandson has to ride a camel too?!"

I suspect Dubai's world class infrastructure is not going anywhere any time soon. For many years to come, the best place in Dubai to see a camel will remain Dubai's specialized camel race course.

The Grand Moofti pulls out his flying carpet

Dear Friends,

The Grand Moofti is travelling the next few days. The next article will be posted on Thursday, December 10, 2009.

Thank you very much for taking the time from your busy schedules to visit the Grand Moofti Speaks. I hope to see you back later in the week.

Kind regards,

Imran

SISTIC, an update on the numbers

In my article on SISTIC published on November 25, I speculated that SISTIC was extremely profitable and enjoyed a monopolistic position in the area of ticket distribution. I also conjectured that SISTIC was owned by the Singapore government.

Thanks to feedback from two readers, I am both right and wrong.

There are at least two other known ticketing agencies in Singapore, Gatecrash and TDC. Apparently, some of the smaller venues operated by the National Arts Council, including the Drama Center and the Victoria Theatre have been known to sell tickets through these two agencies.

Strange bedfellows: the Singapore Sports Council, an agency responsible for the promotion of sports, owns the largest ticketing agency in Singapore

SISTIC is indeed owned by the Singapore government. The Singapore Indoor Stadium (the SIS in SISTIC) owns 65% of SISTIC. The stadium is owned by the Singapore Sports Council (SSC). (I presume the unaccounted 35% of SISTIC is owned by the government directly.)

SSC is a statutory board formed in 1973. It falls under the purview of the Ministry of Community Development, Youth and Sports. (For those who enjoy acronyms, here is one more: MCDYS for the Ministry!)

Fortunately, the SSC audited annual report for the year ended March 2009 is available online. I reviewed the 84 page document (line by line and word for word, I promise!!) and found some information on SISTIC.

For those of you who don't wish to follow the numbers, I understand! You can skip to the final four paragraphs below for a summary.

Of SSC's total income of SGD 51 million, 9 million falls under the heading "Revenue from ticket sales." The heading is distinct from "Admission fees" where I believe revenue from SSC sponsored events will be accrued. A further SGD 2.5 million is listed as derived from "Program fees." Another SGD 3.5 million is shown as 'Miscellaneous income."

In the absence of more detailed information, it seems reasonable to assume that (at a minimum) the SGD 9 million is SISTIC revenue. Later in the report, a note states that SISTIC's "Property, plant and equipment net" is SGD 2.1 million.

If the assumption on income is correct, then we are talking about return on assets of over 400%.

SISTIC's running costs should be fairly low, depreciation of (say) 15% and the salaries of both the Chiefs and the Indians running the SISTIC show. Given that the remuneration for the 'key management personnel' of the larger Sports Council aggregated SGD 3.4 million it seems a safe bet to suggest that SISTIC is highly profitable.

In summary, the investment in SISTIC is listed at SGD 2.1 million and revenue is approximately SGD 9 million. Expenses will be low as salaries comprise of a few key executives and some sales and clerical staff. The cost of maintenance of the hardware and software system will be another expense.

In its present shape SISTIC seems a bit small for a divestment and public listing on the Singapore stock exchange. However, that should be the aspiration. It is a cash cow. Professional management and independent owners should be the structure.

The government's work of 'incubating and creating' a world class ticketing agency is complete.

The report contains a statement saying the Council is planning to divest its shares in SISTIC at "a future date." I guess the Singapore government may find it hard to justify why a sports stadium is running the nation's largest ticketing agency.

PS - Readers may be interested to note that SGD 5.4 million, or more than 10% of the Sports Council's gross revenue, were recovered as car parking charges!

PPS – Thank you to Leslie and Kai Weng for pointing me to the information on SISTIC and the existence of other ticketing agencies in Singapore.

Abu Dhabi, Dubai and the Basel syndrome

Residents of the Swiss city of Basel continually grumble that few outside of the pharmaceutical industry are aware of their city's existence. They point out that Basel is Switzerland's second largest metropolitan area, larger than Geneva and second only to Zurich.

View of Basel at night showing one of its several historical bridges across the Rhine River.

Basel also has the distinction of more one Canton (a Swiss administrative unit), Basel-Stadt and Basel-Landschaft. Basel has representation equivalent to one and a half cantons in the Swiss confederation.

Until a few days ago, Abu Dhabi residents felt ignored by the world. Abu Dhabi, the dull and sleepy neighbour of glitzy Dubai, lives in Dubai's shadow. Given the financial meltdown in Dubai, all eyes are on Abu Dhabi.  

Abu Dhabi is the capital and financial powerhouse within the United Arab Emirates (UAE). UAE without Abu Dhabi is like a phone without a sim card, it just won't work!

Abu Dhabi emirate, which includes the urban area of Al Ain, controls 9% of the world's proven oil reserves. Abu Dhabi is the only member of the UAE which has meaningful oil reserves.

Through the largesse of Sheikh Zayed, the founding father and former ruler of Abu Dhabi, the city pays for almost all of the UAE's federal budget. This includes funding the all-important social sectors of education and health.

Universal health care and education is available to all Emiratis because Abu Dhabi chooses to pay for it. It helps when you have savings in a sovereign wealth fund estimated to total over USD 600 billion. And more wealth is sprouting through the ground every day.

Abu Dhabi's skyline may be missing the Burj but is still that of a modern metropolis

Dubai invests using borrowed money and building extravagant structures in the desert, e.g. the Palm Island. Abu Dhabi invests by digging holes in the ground and extracting oil.

After accumulating sufficient wealth Abu Dhabi buys both businesses and culture. If you don't borrow money then it makes no difference to the international financial system what you construct with your savings.

Dubai is an attention seeker. It had to have the biggest and best of everything. The city made a ripple on its way up and quite a splash on its way down. It is a tribute to the small fishing village that events in a city built around a creek in the Arabian Desert reverberate around the globe.

Dubai World's debt default is not the end of the dynamic emirate. Those who are preparing to attend Dubai's funeral are mistaken. At one time in history, people were arranging a memorial service for Las Vegas too.

Dubai is not the only geography to suffer financial problems. The state of Russia defaulted on its sovereign debt in 1998. More recently, the state of California was using IOU notes to make payments as recently as a few months ago.

Financial defaults occur in many ways. Some may remember the US government's commitment to sell an ounce of gold at a fixed price USD 35. The gold standard was abrogated in 1973. Today, we buy gold at USD 1,200 and counting. Some may consider that a default – certainly it is a way to repay debt with a debased currency.

Just like California, Russia or indeed the US, Dubai is not going to disappear anytime soon.

Its busy ports will still handle large amounts of containers. The airport will continue to act as a gateway to and from the region.

The financial sector was always a work in progress. So, yes things may slow down on that front for a few years.

However, as long as Dubai retains its status as an open, liberal city in the midst of a turbulent region it will remain the place to live and do business in the Gulf. In fact, the crisis will chasten the city and help to make Dubai's business model more pragmatically in the coming years, i.e. invest slower and borrow less.

Realistically speaking, as long as Dubai exists in the shadow of Abu Dhabi we can all breathe easy.

If I appear slightly biased towards Abu Dhabi, be assured I am just being truthful! Although it may help to know that I spent five wonderful years as a teenager in Abu Dhabi.

A miniature painting depicting the inauguration ceremony in 1460 of Switzerland's oldest university, the University of Basel

Abu Dhabi is the city I unilaterally declared my independence from my parents! Of course, I could never have taken such a bold step without reading the works of that one time University of Basel professor – Friedrich Nietzsche.

Singaporeans, pepper crabs, JB and the ‘Golden Years’

The Singapore government has established a Special Needs Trust Company. Families who are worried about the fate of relatives with disabilities can contribute to the Trust which will take care of the individual once the current care giver passes away.

It is a uniquely Singaporean response to a thorny problem.

The solution hinges on good faith in the state and government. In turn, the government provides certain benefits (hidden subsidies?) in the form of lower operating costs and higher returns for the trust funds. Characteristically and most importantly, the trust relies upon private funding.

There is no reliance on the government budget for supporting the enterprise.

Essentially, the trust is a 'defined contribution' care giving plan for families who wish to rely upon the state for securing the future of challenged relatives. The extent and nature of the care will be determined by the amount of cash invested into the trust by each family.

Over time, the size of the trust should pick up. Subsequently, the benefits of critical mass will accrue to all members. However, if the trust follows in the footsteps of the Supplementary Retirement Scheme (SRS) then it may take some years for the trust to reach a reasonable size.

The establishment of the Special Needs Trust Company is a response to growing needs of the Singapore population. The demand hints at some of the changes in population and mindset that are permeating younger Singaporeans.

The trust is an obvious sign of greater affluence. Only wealthy families with reasonable discretionary income can buy into such a fund.

More ominously, the scheme hints at a slow but inevitable breakdown of traditional Asian values. In the past, a family will not consider abdicating their 'clan' responsibility to the state. The family will take care of its own members without any recourse to the state.

Granted, there are mitigating circumstances: these are individuals with disabilities.

The wind is clearly blowing in a particular direction; a path ultimately leading to nursing homes for elderly Singaporeans.

Earlier this year Singapore's Health Minister was ridiculed for suggesting that Singaporeans consider just such an option in Johor Bahru, Malaysia. It might be a difficult truth for many Singaporeans to grasp but the Minister's comments deserve further evaluation.

The greying problem is as severe in Singapore as in Japan. The recent wave of new immigrants will pay taxes and fund essential government services but Singapore is not a welfare state.

Retirement is self-funded. There is no 'pay as you go' state sponsored retirement scheme. The Central Provident Fund (CPF) system is well designed but CPF balances may be insufficient to completely fund the retirement of many Singaporeans.

Paying for medical care and retirement benefits is a practical problem that Singapore is poised to confront in the next few decades. Is it not obvious that nursing homes in Malaysia will provide far better value for money?

Retirement funding will become a recurring theme in the coming few years. The sooner Singaporeans start their own retirement trust the less the likelihood of moving to JB in their 'Golden Years.'

Unless you are moving just to enjoy the pepper crabs.