Q How do you think people’s lifestyle, the way of thinking about their life plan, or their consciousness in Singapore have changed compared to before COVID-19 pandemic?

​

A Singapore is now in phase 2 (after 18th June 20) of re-opening of the economy. After phase 2, retail businesses have reopened their physical outlets. Food and beverage dine-in is allowed subject to a group size of 5 per table. It is mandated for you to wear a mask when you leave your home. We have to practice safe distancing measure (1 metre apart when you are queuing to pay for your food or purchases).

 

During this period, the financial adviser firm that I worked with implemented the following key guidelines for the workplace:

​

1. Work from home if at all possible.

2. Get approval before coming to work.

3. Wear a mask whenever financial adviser representative are out of our home and stay 1m apart.

4. Take your temperature in the morning and afternoon.

5. Stagger work and break hours, if unable to work from home.

6. Hold virtual meetings where possible.

7. Complete the health declaration form.

 

During the sales advisory process, clients are keener to know whether they are covered for COVID-19. This has become a norm for CFP practitioner to includes this as part of their risk management.

​

Q What are the changes in the content of consultation / contact frequency from customers, etc., and how does it affect your/ financial institutions’ business including the change of work style (Online, etc.)?

 

Please tell us in detail as specific as possible, including the generation of the customers, etc. (e.g. The customers in the 50s and the 60s have increasing concerns about managing their retirement funds. / Online consultations are increasing rather than face-to-face meeting. / The demands for hiring new financial planners are increasing or decreasing because of the increase of the number of financial planning consultations, etc. ) 

​

In addition, what kind of advice do you give to their anxieties or stress?

​

A Within one month of facing COVID-19, all the financial institutions in Singapore have come out with non-face-to-face option for clients to apply for investment/insurance. With the above changes, financial adviser representatives have to adapt to the changes and start to work with clients using e-signature and meet clients using Webex / Zoom (online conference) call.

 

During the total lock down situation, financial adviser representative need to spend more time to educate their clients whose age is above 50 on how to use the online tools during their client meeting. Frequency of client meetings remain the same. With more client meetings done through online channel, the demand for office space is on a downwards trend. We will probably see shrink of office space for financial adviser if COVID-19 pandemic is prolonged.

 

Instead of the usual client seminar, we are seeing more financial institutions organizing webinar that comes with good quality food that is delivered to clients’ home.

 

With unemployment increasing in the months to come, we can foresee that there will be increase in hires for financial adviser representatives. This is because financial adviser representative’s compensation structure is commission based.

​

Q What are issues in practices financial planners identified under the COVID19?

 

How do you think financial planners / financial firms could / should deal with the issues of financial planning practices under COVID-19 or the customers’ changes?

​

A Main challenge that financial planner is facing under the C’OVID-19 is that Singapore government bond yields has reduced significantly since the pandemic hit Singapore. 10-year Singapore government bond yield has reduced from 1.76% in Dec 2019 to 0.9% in Aug 2020. With the reduction in yields of both Singapore government bonds and good quality corporate bonds, there is a need for customer to save more to achieve their retirement goal. Singapore is facing a greying population where the life expectancy of Singaporean has increased steadily over the years. This is a major problem even before the COVID-19. The significantly lower yield of the Singapore government bonds during COVID-19 has aggravated the challenge on building sufficient retirement funding that Singaporean need in the future. During the COVID-19 pandemic, quite a number of insurers in Singapore has withdrawn some of the higher guaranteed retirement plan(endowment) and replaced it with retirement plan that has lower guaranteed return. Customer will need to save more to get the same level of guaranteed monthly retirement income with the new retirement plan. This will be a big challenge especially for clients who are near their retirement age. To meet client’s retirement needs, customer should consider investing with proper advice to meet their retirement goals.

​

Q Do you think that the value and needs of financial planning and CFP certification are increasing among consumers / customers / firms?

 

Please include the recent recognition of financial planning / CFP certification, or the environment surrounding financial planners in Singapore.

​

A This is the worse pandemic that I have encountered during the last 22 years of my financial planning journey in Singapore. The advantage of being a CFP practitioner when face with this crisis is that I am trained to provide quality and holistic advice to clients. It is a very systematic 6 steps of financial planning process that works in every situation including COVID19. In fact, it is during this crisis the CFP professionals that always act in the best interest of clients will emerge stronger from here.

 

During this period, Monetary Authority of Singapore(MAS) announced support of up to S$90 million, to encourage financial institutions and individuals to invest in their training during the economic contraction caused by COVID-19. With the above funding, Institute of Banking and Finance (IBF) launched the enhanced training support for financial institution or self-sponsored individuals with up to 95% subsidies for IBFSTS training programs that commence before 31st December 2020. CFP program is under the approved IBF-STS training programs. Participant that sign up for CFP training programs will receive allowance of $15 per hour (financial institution sponsored) or $10 per hour(self-funded) for completing the CFP course. Financial Planning Association of Singapore (FPAS) has seen a significant increase in number of students taking the CFP program due to the above enhanced training support.

​

Q In addition to the above, if you have any remarks about the current economic environment in Singapore, the government’s response to consumers including benefits or rewards for relief, medical insurance, etc., future prospects towards financial planning or any messages for financial planners in Japan, please let us know.

​

A The Singapore economy contracted 13.2% on a year-on-year basis in the second quarter. The fall in GDP was due to the Circuit Breaker measures implemented from 7th April to 1st June 2020 to slow the spread of COVID19 in Singapore, as well as weak global demand due to COVID-19 pandemic. We have seen Severe Acute Respiratory Syndrome (SARS) in Singapore in 2002 amid not as severe as COVID-19. Just like SARS, we will be getting out of this pandemic one day. We should make use of this downtime to attend more training and get ready for the day that we are out of this pandemic.

 

Unemployment will be going up in the next couple of months. I will make full use of this opportunity to get highly qualified individual to join the industry. In order for me to do that, I will employ a recruitment executive to help me in my recruitment effort. In crisis like this, Singapore government will help to subsidise 50% of the salary of recruitment executive whose age is above 40 for up to one year. When will be a better time to do that than today?

 

“The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger--but recognize the opportunity.”

 

You should be able to find the opportunity in Japan. All the best!