Prof Koon Shing Kwong

Feature on Prof Koon Shing Kwong, Professor of Statistics (Education)
Director of Actuarial Science programme
School of Economics, Singapore Management University 

Shaping the next generation of leaders in actuarial science 

While dedicating his actuarial research to securing the financial future of Singapore’s retirees, Professor Koon Shing Kwong dedicates his teaching duties to the future of his students and faculty.  

A great mentor can be pivotal for anyone’s growth—whether a coach for an athlete, a manager for an employee or a teacher for a student. That was the case for SMU Professor of Statistics Koon Shing Kwong, when he embarked on his career as a statistician in 1993. 

Two of his senior colleagues were not only decorated researchers with extensive publication records but also qualified actuaries. “Their achievements inspired me and I considered them my role models. Their successful career paths motivated me to pursue the actuarial qualification as well,” Professor Kwong recalls. 

Nearly thirty years on, Professor Kwong has similarly enjoyed a thriving career: he earned his professional qualifications, has had his research published in top-ranked statistics journals and received several awards for teaching excellence. Now, he is completing the circle by setting the next generation on their way.  

As the Director of SMU’s Actuarial Science programme, Professor Kwong has turned his attention to serving as a mentor to students and junior faculty—contributing to the future of the field and making an impact in society. 

Finding a secure future through statistics  

In his three decades as a researcher, Professor Kwong has swung from establishing statistical testing in clinical trials, to building a pricing framework for Singapore’s Lifelong Income For the Elderly (LIFE) pension programme. Professor Kwong approached the transition to retirement financing with a personal and empathetic motivation, having his own future at the back of his mind. 

“I was thinking ahead and asking myself what I need to do to ensure I have enough savings for my retirement, and so I did some research. As I read the literature on Singapore and Asia, I realised that most countries do not have enough financial tools to tackle the challenge of aging populations,” Professor Kwong says. 

This realisation motivated him to contribute innovative retirement financing ideas, a task which he describes as “increasingly compelling and crucial” in Singapore, given the city-state’s ageing population.  

Aside from pensions and insurance, another set of potential retirement financing tools are those which unlock cash from their assets, such as public housing offered by the Housing & Development Board (HDB). “Asset-rich-cash-poor retirees often have their own flat but not enough cash,” explains Professor Kwong. “If they can release their property assets into retirement funds, it would benefit not only the retiree but society as a whole. People could more easily support themselves without as much government subsidy.” 

This was the plan when, in 2009, the HDB introduced a Lease Buyback Scheme (LBS) to allow homeowners to sell the tail-end of their flat lease for an upfront cash payment. However, this lost property ownership and shortened period of staying to the front-end lease expiry date—usually covering the first 20 to 30 years, instead of for life. This catch may have contributed to relatively few people choosing the LBS offering, according to Professor Kwong. 

To find a better approach, Professor Kwong and colleagues applied actuarial science principles to analyse the current system and proposed a sell-type hybrid equity release (HER) plan, in the paper A hybrid equity release plan for retirement financing

“If we offer homeowners to stay in the HDB flat for life, the additional cost is relatively small,” he explains of their findings. “HER entitles homeowners to stay in their property for a certain period, or for life if homeowners outlive the stipulated period. As part of property may be sold, it also provides the potential of monetary benefit if the property’s value increases.” 

By exploring such ideas with rigorous calculations, Professor Kwong hopes to provide better alternative financial retirement plans that meet people’s personal needs and preferences. At the same time, the Government would find it easier to fund a growing retired population. 

Passing the baton to the next generation 

Beyond retirement futures, Professor Kwong’s mission is to nurture the future generation of actuaries. “For me, teaching is not just a job, it is a social responsibility to give back to society. Our curriculum should help our students to earn their professional qualifications and make their own contributions to society,” he shares. 

In pursuit of this mission, Professor Kwong moved from developing materials for individual courses, to overseeing three second major tracks for students at SMU—Applied Statistics, Data Science & Analytics, and now Actuarial Science. 

Professor Kwong and colleagues strategically curated course content to help students to pursue the actuarial qualification. By partnering with a market consultancy firm, for example, they secured actuarial software licenses for training students outside the regular curriculum. They also updated the curriculum to reflect changes made by the US Society of Actuaries, such as adding modules aligned with the data science component in the professional exams and adding Work-Study Elective offering six-months internship with industry partners. 

For Professor Kwong, shifting from teaching to administrative responsibilities meant dedicating more time to take the programme to the next level. “I receive valuable help from junior faculty because they are the ones to carry on these ideas and make sure that the programme and related courses continues to run smoothly in the future.” 

With this future in mind, Professor Kwong actively gleans insights from co-faculty, ranging from improving classroom management to meeting their career development needs. This healthy sharing of ideas and experiences across generations also extends to the alumni, who return to their roots to deliver talks to inspire future Actuarial Science graduates. 

“I do not measure success based on how many articles I have published or awards I have won. I constantly ask myself what I should do to provide a better learning environment for my students and help junior faculty to transform from being good teachers to all-round educators,” Professor Kwong says. No doubt some of his students and colleagues will be repeating the cycle in the decades to come.