The umbrella body for Protestant churches here has weighed in to say that it is not wrong for churches to acquire commercial property or go into business, subject to certain conditions.

The National Council of Churches of Singapore (NCCS) told The Straits Times yesterday that if a church goes into business, it should at least observe the following principles.

First, it should have a clear mandate from its board or governing body to do so. The risks and financial implications should be expressed clearly and noted.

Second, the ownership of such ventures must remain in the name of the church as their set-up is financed by the church.

'There should be no question as to who will receive the proceeds accrued from the investment - it will be the church, which could then apply the returns towards its ministry and mission,' NCCS general secretary Lim Kay Tham said in a statement.

Third, the church should be careful not to engage in any enterprise that is not consistent with its values, which include accountability, simplicity and compassion.

'The overarching rule to observe is that the church should not allow itself to be distracted from its mission of preaching the gospel by being too deeply involved in business, whether big or small,' he said.

On the trend of churches investing in property and businesses, with City Harvest Church putting in $310 million to become a co-owner of Suntec Singapore and New Creation Church's business arm Rock Productions teaming up with mall developer CapitaMalls Asia to build a $1 billion lifestyle hub in one-north, the NCCS said the Bible teaches Christians to exercise 'good stewardship'.

'This means that they should put their talents and money to good use. Property holding and investment are therefore not forbidden,' its spokesman said.

However, he added that churches are not primarily set up to hold property or engage in business, although they do and can acquire property in order to carry out worship services and facilitate activities.

'In this respect, they are not different from banks, which own property but only to serve their core business of banking,' he said.

In the wake of an ongoing investigation into the alleged misuse of funds involving City Harvest Church, the NCCS also made clear it is a voluntary association of churches, not a watchdog, and does not play a regulatory role.

'Under our Constitution, each member church determines its own policy and action. Member churches are, however, encouraged to follow the code of governance issued by the Charity Council,' said its spokesman.

The NCCS was formed in 1948 to promote Christian unity, and has 192 member churches. They cover the main Protestant and Orthodox denominations here such as the Anglicans, Presbyterians, Lutherans and Methodists.

Its members also include some 30 independent churches, among them City Harvest Church, which joined in 1996, and New Creation Church, which joined in

1998.

However, the NCCS acknowledged that the space crunch for churches - thanks to spiralling church land prices, fierce bidding and the constraints of 30-year leases - was 'a real challenge'.

'The pressure for physical space to hold worship services and church activities has certainly been a real challenge for churches,' said Mr Lim.

'Those having to rent commercial facilities pay a high premium. And even if a particular church is able to pay the high charges, the week-by-week use of hired facilities is never assured.

'City Harvest Church tells us that they have to pay millions of dollars to use the premises at the Singapore Expo, and even then on some Sundays, they are subjected to relocation.'

A Sunday Times report on June 13 raised the issue of rising cost and scarcity of church land making it more viable for some churches to venture into commercial territory and go into business to pay for it.

It found that in the past few years, the winning bids for church land with 30-year leases had shot up, with prices breaching $418 per sq ft in 2007 - much more than similar suburban residential land costs.

The NCCS spokesman added that applying for religious sites offered by government land sales agent HDB is subject to intense bidding, and strong demand pushes up prices.

'Most churches, especially if they have only a small membership base, will not be able to submit a bid that will give them a fair chance of success,' he said.

Source : The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.