TR EMERITUS

By Fang Zhi Yuan, Chief Editor "DBS begins compensation process" screams the Straits Times headlines on 24 October 2008. "I am deeply concerned about the anguish our customers are experiencing. DBS is committed to doing the right thing and my colleagues and I are working as hard as possible to resolve the situation" DBS CEO Richard Stanley said in a press statement a day earlier. More than 2 weeks after DBS Hong Kong announced its plans to compensate local minibond holders, DBS Singapore suddenly sprung into action, trigging off a cascade of activities that have taken even the most optimistic observers by surprise. For the past one month since the minibond fiasco first erupted, the Singapore authorities have been keeping relatively mum, preferring to let the individual financial institutions handle their customers themselves. Even the events which had transpired in Hong Kong had been kept secretly under wraps till this blog exposed the mainstream media's complete news blackout. One man whose name has been synonymous with this entire saga is ex-NTUC INCOME Chief Mr Tan Kin Lian who have been hogging the limelight by lending both a ear and a voice for the affected investors, many of whom are not financially savvy. Mr Tan wrote on his blog daily, answered questions filed by anxious Singaporeans and organized 3 protest rallies at Hong Lim Park for the investors to meet one another and to discuss their common course of action. 3 petitions for the Monetary Authority of Singapore (MAS) to take concrete actions to assist the investors were submitted with the 4th in the pipeline. The seemingly endless impasse was finally broken last Wednesday with the surprise announcement by 3 banks - DBS, Maybank and Hong Leong Finance to compensate "vulnerable" customers. Appearances are often deceiving especially in Singapore where nothing happens without a good reason. The joint declaration by the three banks in unison to compensate affected investors is too well-timed and choreographed to be attributed to mere coincidence without raising one's suspicions if they were instructed by somebody "up there" to do so. The mantra for Singaporeans to deal with the government had always been this since time immemorial: "GO THROUGH PROPER CHANNELS." There was never any allowance given for short cuts which will be frowned upon immediately as deviant behavior. Without Mr Tan Kin Lian's interjection, the financial institutions will have a much easier time dealing with individual investors separately. Now that they have found solidarity and strength together, they are emboldened to take drastic actions previously unheard of such as protesting at DBS's headquarters and taking up a class action suit against the banks. The banks appeared unprepared for this new-found civil activism which had led to persistent lobbying by the investors for compensation and the authorities have no choice but to step in to defuse the tension before it explodes in their face. According to insider sources which I can't verify independently, senior officials in MAS conceded they had made a mistake in giving Tan Kin Lian the opportunity, freedom and time to speak to the investors who now regard every single word he said as the gospel truth. Uncertain of Tan's motives and worried that matters may get out of hand with rising anger and angst amongst the investors, they are now moving in in double-quick time to reverse the damage which is most evident from the recent media reports and news broadcasts: 1. Authoritative figures from the finance industry such as Mohd Salim and David Gerald were roped in to offer their views which essentially implore investors to have patience and go through proper channels such as lodging a complaint to the financial institution or FIDReC first. 2. Lawyers including a PAP MP were interviewed on the prospect of taking legal action against the banks which were discouraged by all. Even the opposition MP Mr Low Thia Kiang issued a press statement urging investors not to resort to legal means. 3. Mr Tan Kin Lian was conspicuous by his absence and his views were no longer sought after and published by the mainstream media. 4. Suddenly the media carried reports and advice for the investors daily filling up at least 2 pages of space while it was previously a no issue for the last 3 weeks or so. 5. Government leaders began to speak up on the issue including MAS's Managing Director Mr Heng Swee Keat and Prime Minister Lee Hsien Loong which leaves one wondering why they had not bothered to do so earlier. Some senior officials distrust Tan Kin Lian and have expressed their displeasure privately at his "antics" which has not been helping their work. During a high level meeting last week, one official was said (unconfirmed) to have uttered the expletive "What the hell is Tan Kin Lian doing ?" to his colleague. Mr Heng Swee Keat let loose a freudian slip in Sunday Times alluding to Mr Tan Kin Lian subtlely when he said this: 'I understand that affected investors are anxious and looking for solutions. Unfortunately, I think some of the advice they are receiving is not helpful because it has generated anxiety and confusion.' The authorities now find themselves stuck in a quagmire. They cannot reprimand Mr Tan Kin Lian openly without incurring the wrath of ordinary Singaporeans many of whom now rever him as the "Champion of the underdogs", yet it is becoming a torture to allow him to continue stealing the show which rightfully belong to them. The only recourse they can find is to make him a "persona non grata" through denying him the media space and air time to have his views heard in order to dilute his influence. Judging from the size of the crowd at last Saturday's Hong Lim Park 3 days after the announcement of the banks' offer of compensation, it may be a case of too little, too late. Daily news updates and CNA headlines can be found at The Singapore Enquirer  Read More →

Photos by Eugene Yeo and Cheng Siew Peng Read Wayangparty Club's coverage of yesterday's protest at Hong Lim Park: Field report and photos Mr Tan Kin Lian's speech Part 1 Mr Tan Kin Lian's speech Part 2 Mr Tan Kin Lian's speech Part 3                     EDITORS' note: Daily news headlines and updates can be found at The Singapore Enquirer .  Read More →

Video and editing by Eugene Yeo and Cheng Siew Peng, uploaded at 10pm. [youtube=http://www.youtube.com/watch?v=BBp_JhTrUQM&hl=en&fs=1] Excerpts from Mr Tan Kin Lian’s speech: "Somebody asked me, Mr Tan, is it possible to get back 100% ? Honestly, I don't think so. Because already the underlying assets, so many have already failed. Before Lehman Brothers went under, the value has dropped below 50%." "Hong Kong asked the banks to buy over, is that good or no good. But it depends buy over for how much. According to what I read, buy over at market value is no good. Market value today is only 10 to 15%. You might as well take the risk and wait. But if they over 70 or 80%, I think it is worthwhile." "Actually when I started talking to you 3 weeks ago, I thought the banks should compensate a bit more, but you looked at these three weeks, the stock markets dropped by 30%. So investors you must take this into account so that you can reach an agreement with the banks. I would like to thank you all and let's welcome Mr Goh" Mr (?) Siew Ong Koh (rushing to the stage before Mr Tan left to hand over a "plaque" to him): "Ladies and gentleman, let's thank Mr Tan. I have one word. Now I have one way. Through legality, we are all lost. But we are looking for a response from the people. Who are responsible ? The Top Top, the Fat cat, or MOF or another honest mistake !" More photos of today's event will be published tomorrow, so stay tuned on our blog for the most up-to-date news. This news coverage is proudly presented to you by the Editorial Team, Wayangparty Club - the FASTEST news blog in Singapore. EDITORS' note: Daily news headlines and updates can be found at The Singapore Enquirer .  Read More →