TR EMERITUS

By Fang Zhi Yuan In spite of my initial misgivings of the government's handling of the Lehman minibond fiasco, I must applaud them for bringing about a faster than expected closure with the latest announcement by Hong Leong Finance, Maybank and DBS to compensate "vulnerable" buyers for their losses. If the outcome was expected, the government certainly did not betray its intention during the last parliamentary sitting in which Deputy Trade and Industry Minister Mr Lim Hng Kiang defended MAS's approach to the fiasco so far and urge the investors to be patient. What makes the banks come to such a collective decision in double-quick time when they have been dragging their feet during the past 2 weeks is anybody's guess. Is it due to a possible class action suit mooted by some investors or the endless brickbats hurled by netizens and bloggers at MAS for its impotence and inaction in comparison to the Hong Kong Monetary Authority ? Irregardless of the real reasons behind this sudden reversal of fortunes, the affected minibond investors, especially retirees who lost their entire life-savings should heave a sigh of relief by now. Though the exact details have not been worked out, they can now be assured that they will get some if not all of their initial investments back - not quite a winner, but not complete losers either.  The government and MAS, in particular has redeemed itself timely in the eyes of ordinary Singaporeans who were previously peeved and frustrated by its lassie-faire attitude. In spite of the numerous criticisms this blog has levelled at them, we are willing to forgive and forget now that justice has been served in a sense that vulnerable investors targetted for hard-selling by unscrupulous financial agents will be given a partial if not complete compensation after all. Mr Tan Kin Lian, who has been fighting hard for the rights of the investors since the very beginning has seen his profile raised considerably in the eyes of the public, many of whom viewed him favorably as a hero of the people which will come in handy if he decides to run for the post of the Elected President in future. Perhaps the only loser in this entire saga is the mainstream media which have lost substantial credibility over its deliberate blackout of DBS Hong Kong's offer to compensate its local customers. The government may well have decided it is time to stop providing us and other pesky blogs with free cannon fodder to fire at them. Are we winners as well ? In terms of viewership, the minibond issue didn't really boost it by much. As for public relations wise, it has definitely generated much goodwill about us from netizens. This really should have been the government's call to score some precious brownie points. What a shame it chose to let it pass and allowed uninvited third parties to steal the limelight instead. EDITORS' note: Daily news headlines and hourly updates can be found at The Singapore Enquirer .  Read More →

By Fang Zhi Yuan In parliament yesterday, Deputy Trade and Industry Minister Mr Lim Hng Kiang claimed that MAS is already doing everything that it can for the affected minibond investors. "It is fully understandable he said, that investors are anxious but the process must be allowed to take its course as rushing into a "fire-sale" would not be in the interest of investors. The MAS approach, allows for a wider range of Singapore investments options to cater for diverse needs while keeping the regulatory framwork." (Well, Mr Lim, can you really understand how anxious the investors are when you are earning in excess of S$1.9 million dollars a year, S$100K is peanuts to you !) Let's compare what MAS has done so far with its counterpart in Hong Kong, the Hong Kong Monetary Authority (HKMA): Hong Kong Monetary Authority: Compiled a list of telephone enquiry lines established by banks (or their related organisations) for answering questions on Lehman-Brothers-related investment products. Established a dedicated telephone line to assist individual investors who might have complaints in relation to the sale by banks of investment products related to Lehman Brothers.  The number is 8100 2314 (operating hours: 9 a.m. to 6 p.m. on Monday to Friday except public holidays).  They may also contact the HKMA by email at [email protected]. There is a Chinese section for those who are not English iliterate especially Chinese educated retirees. Publishes Statistics on processing of complaints concerning Lehman-Brothers-related products which lays down the four stages of action explicitly: Stage (1) - Initial processing: The HKMA formally registers each complaint and writes to each complainant to confirm receipt of his/her complaint, assigning him/her a complaint number to facilitate subsequent communication and follow-up.  Stage (2) - Establishment of allegations: The HKMA makes follow-up contacts with each complainant (mainly by phone) to obtain or clarify allegation details.   Stage (3) - Assessment for further actions: The HKMA reviews and decides whether there is prima facie evidence to open investigation in each case.     Stage (4) - Referred to SFC: The HKMA decides whether, after investigation, a case should be referred to the SFC for further action.   The actions taken by HKMA so far had forced the banks to accept a government's proposal to buy back the minibonds from investors at current market value (hear South China Morning Post podcast here)   Monetary Authority of Singapore: Provides a list of hotlines for relevant institutions. There is a Chinese section dedicated to Chinese-educated investors. No dedicated phone line for investors to complain directly to MAS. (I tried calling the main line which is forever engaged). Did not publish any statistics on the processing of complaints so far. Delineate a 3-step guide for affected investors: 1. Investors are to lodge their complaints directly to the financial institutions which sold them the products. 2. Investors should provide full details of their case to allow the financial institutions to make a fair assessment. 3. Accept the decision of the financial institution or refer your own complaint to the Financial Industry Disputes Resolution Center(FIDReC)   We can see for ourselves from the above while HKMA is proactively seeking redress for Hong Kong investors by acting directly on their behalfs to liaise with the banks the moment they file a complaint to them, MAS has chosen to adopt a hands-off approach in which Singapore investors are "advised" to settle their grievances with their banks. In short, MAS appears reluctant to involve itself to adjudicate for the affected investors who were asked, to put in bluntly, to "swim on their own." Imagine if you are a 70 year old retiree who does not understand or speak English and had lost your entire life-savings just because you were told to sign on a piece of paper by a bank staff promising higher interest. Right now, you are feeling angry, anxious and depressed and instead of the government rushing to help you, you were told this is your own "business" and the onus is on you to deal with the very bank who sold you the products ! Won't you feel even more lost and aggrieved ? MAS should have shown more empathy and compassion to ordinary Singaporeans who lost their hard-earned savings in such a short span of time to no fault of their own. By making the financial institutions the adjudicator in the dispute which involves them in the first place, the investors are completely at the mercy of these powerful institutions. What makes MAS believe that these financial institutions will handle each complaint fairly when it concerned their own profit margins and vested interests ? MAS's exhortation to investors to "accept the decision of the financial institutions" or refer their complaints to FIDReC is downright insensitive and callous. MAS did not even bother to put down the full name of FIDReC. Does it expect laymen like us to know what it stands for ? We are talking about devastated people who are now clutching at straws and yearning desperately to get part of their investments back and MAS is telling them to accept whatever decision made by the banks even if that means not getting a single cent back. I did a brief check on FIDReC and found out that the entire process can be quite cumbersome and tedious. A case manager must first decide if the case is within FIDReC's jurisdiction before mediation can even commence. If mediation fails, the case will be referred to another adjudicator for final decision. How long this will take is anybody's guess. In the meantime, how are those retirees who lost their entire life-savings going to live on ? While the government has no right to dictate to private financial institutions on the handling of the fiasco, it should have and could have done much more to alleviate the anxiety of the affected investors. Surely it is within the means of MAS to set up a special committee staffed by a full-time manager to attend to the concerns and needs of the 8,000 investors who have lost a substantial sum if not their entire savings. If MAS has taken more initiative like HKMA to reach out and assist the investors, we will not need an ex-NTUC INCOME Chief to hold weekly Saturday protests at Hong Lim Park which is surely an affront to the government's moral authority and a source of embarrasment to our status as a first world economy. While Hong Kong has already taken a gigantic step forward to resolve the minibond saga, Singapore remained mired in it and things are set to become more messy as some investors are now pondering taking out a legal suit against the banks. EDITORS' note: Daily news headlines and updates can be found at The Singapore Enquirer .  Read More →

Which is true ? [youtube=http://www.youtube.com/watch?v=BTZ5LFof4AM&hl=en&fs=1] CNA: SINGAPORE: The Marina Bay Sands Resort has announced a massive recruitment drive to start getting some of the 10,000 staff it will need, with priority given to locals. Marina Bay Sands: We invite high calibre talent to join our Marina Bay Sands Team for a rewarding Singapore career. There are 40 jobs available now. Well, the truth is: Marina Bay Sands is looking for only 40 people to filled its vacancies at present and nowhere is it stated that locals will be given priority. How this is misconstrued by CNA to be a "massive recruitment exercise" is anybody's guess. It appears that the mainstream media has added a spin to it to offer false hope to Singaporeans looking for a job in a difficult period when the economy is entering recession and of course to provide timely justification to its controversial decision to allow casinos here. Let us help our CNA journalists get their FACTS right: "Amid a worsening economy and uncertain times ahead, Marina Bay Sands had launched a cautious recruitment drive for 40 jobs which is open to everybody including foreigners." Our dear esteemed journalists, you are PAID a generous salary to write and you still need amateurs like us to teach you basic journalist ethics and writing skills ?  Read More →