Lim Chih Yang, Main Stories - Written on Tuesday, October 21, 2008 0:27 - 20 Comments
When silence is not golden
Lim Chih Yang / Writer
There is a saying that “silence is golden”. The recent financial turmoil unleashed initially in the global financial system and the changes in oil price has made the silence of the various institutions and bodies in Singapore deafening.
Now let us first consider the hot topic of the day – investors who lost money in the Minibond crash. The background of the Minibond saga should be familiar with most of the readers and thus do not bear repeating here. It is estimated that about 10,000 investors in Singapore lost about $500 million in this particular investment.
The investors in this particular product may hail from all walks of life but it is to The Straits Times credit that they highlighted a group of people within the investors that we are most sympathetic to – that of the old retiree. By putting a face to the investors, we could perhaps empathize with these folks knowing that they could be the friendly next door auntie who has scrimped and saved her entire life only to lose her life savings overnight.
In a similar development, over the last two weekends, Mr Tan Kin Lian held various speeches at Speakers’ Corner highlighting the plight of the investors. To his credit, Mr Tan did not just engage in speaking but also acted by helping the investors by providing for them avenues and means to address their concerns. The fact that he has managed to get a lawyer to help the investors and organized an online petition highlights his seriousness in seeking redress for these investors. Granted, not all investors are financially-illiterate and in the dark about the risks of the product but nevertheless there is a need to address the issue of mis-selling by the banks to ensure that any genuine victims are given opportunities for a fair hearing at seeking compensation.
Disinterested and silent
Given the magnitude of the losses, it is strange to see MAS initially appearing to be disinterested in the saga. As a regulator, should not the MAS take a more pro-active role to determine if there had been any breaches in the banks’ financial compliance? It would appear that MAS seems unsure of the appropriate response and seems to be taking the cue from various foreign central banks. Another body that has been strangely silent is The Financial Industry Disputes Resolution Centre Ltd (FIDReC). The mission statement of FIDReC says,
“To provide an affordable alternative dispute resolution scheme that is independent and impartial, so as to encourage and assist in the resolution of disputes between consumers and financial institutions in an amicable and fair manner”
Unless one has been hibernating the last few months, it is hard not to be aware of the Minibond saga. Why has FIDReC been silent on the issue thus far? Given the breadth and depth of the minibond losses and its impact on Singaporeans of all walks of life, should they not take a more pro-active position in requesting for all aggrieved investors to register as a group with FIDReC so that their concerns can be addressed? Why does it require a retiree to rally the investors and hold speeches at Speakers’ Corner before the various bodies are willing to take notice? It is sad that in such desperate times, the leadership that is expected of a highly paid government and its ministers is sorely missing, while the action of an unpaid retiree is reaping the desired results that the investors are seeking.
CASE
Another institution that has been surprisingly silent is The Consumers Association of Singapore (CASE). As we are all aware, oil price has dropped from a high of US$145 per barrel in July 2008 to a current price of about US$75 per barrel, any company that is remotely dependent on oil has used high oil prices as a reason for price increase. Comfort Delgro had in July claimed that high oil price necessitated the introduction of a fuel surcharge to help taxi drivers alleviate their cost. While I am in no doubt that taxi drivers work long and hard hours for their income in these difficult times, there are also many people who are affected by the fuel surcharge but have no choice but to take taxis out of necessity. Given that the prospect of a sustainable low oil price is forecasted in the short-to-medium term, should not CASE take issue with the various taxi operators at lowering their taxi fares to help alleviate the recession that many Singaporeans are facing?
It is said that desperate times calls for desperate measures. The silence of the various institutions created to provide the ordinary folks with a low cost means to seek a hearing is deafening. If FIDReC had acted soon enough to provide the platform and avenue for the investors to address their grievances, would it have been necessary for a retiree to spend hours in the sun rallying investors, engaging lawyers and organizing petition? The time, money and effort could have been better utilized in other avenues. Should not CASE seek to ensure that the various companies which had cited high oil price as a reason for price increases not similarly reduce their prices given that fall in oil prices?
We are face with many what-if scenarios. Should the various institutions continue to play a silent by-stander, wait-and-see attitude, Speakers’ Corner may not be big enough to accommodate the growing number of discontented citizens seeking a voice for themselves. Silence is not always golden – not when one’s rice bowl is at stake.
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Cartoon from My Sketchbook. Click on cartoon to enlarge.
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20 Comments
The silence is likely to prevent any hiccups to the greatest night show on Earth, if you ever notice the hyping before F1. The media people of the world was here, our esteemed government needed to make sure that only the good things were reported. During F1, the local media behaved like a story book. Nice beginnings, nice endings.
Imagine if TKL had his talks in HLP during F1.
Can I add in another person to the article..
MR PRATA MAN! YES! REPEAT AFTER ME! MR PRATA MAN!
Mr Prata Man(pls ask your friend who prata man is ..if u don’t know)
Oh yes.. Mr Prata Man is seen on TV endorsing the launch of the Tamil TV Channel. Looks like he must have been an avid TV viewer… hmm.. which comes to mind.. could he have been watching tv too much that he forgot to be the People’s voice?
Imagine.. Speaking on TV .. saying “Oh.. I can’t wait for that goody goody Tamil TV channel.. I’ve been waiting for so long for that”… but remaining totally silent on the issues that concern people’s lifesavings..
look at the majority shareholders of
DBS bank
SMRT
Delgro
Singapore Powers.
Only TKL dare to speak out.
Even MAS has to move cautiously to avoid any showdown with any particular bank. No one dares to speak up.
Who monitors MAS to ensure toxic products are not sold to retail investors? I understand Malaysia was not involved at all !
Fantastic!
Yesterday 6.30pm chinese news at channel 8 showed Lim Hng Kiang laughing cracking jokes in parliament while explaining why Singapore government was slow to act in the banking crisis compares to HK govrn.My heart feel very pain when I saw Lim HK laughing cracking jokes instead of offering some helps to the unfortunates who lost their life savings,this heartless animal was happily laughing and cracking jokes while his follow MPs also joined in the happy laughing.I feel very sad how one can elect all this heartless animal into parliament.The same laughing,jokes was again shown at 10pm chinese news at ch 8.I wonder why the opposition MPs there didn’t do anything there and then.If JB was still there i think he will stand up and fire all those who laugh happily
Daily reminders : 'Maybe' is as good as 'maybe not' - lets wake up!
To me,
Silence means ACCEPTANCE.
Its means YOU ASK FOR IT!
The PEOPLE is ultimately ACCOUNTABLE ( not just responsilbe) for the Choices they had made. Who cannot understand this simple statement?
4) hope – no hope on October 21st, 2008 10.13 am look at the majority shareholders of
DBS bank
SMRT
Delgro
Singapore Powers.
Only TKL dare to speak out.
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Look at the FTs coming in to Occupy created-in-singapore jobs. Are singaporeans capable of jobs that foreigners are occupying? If not, does it mean there is TALENT shortage? IF SO, is this why there is only talents like T K L and Mr Leong available to step forward? If not, can anyone give a clear reason WHY ? I think only those like TKL and Leong who never step forward can answer this.
I do not want to put it bluntly cos it would not be nice to hear what i want to say.
In times of national crisis, I wonder how many will step forward and how many will actually run 1st.
I think many issues are too obvious to be ignored. People please wake up!
Suprisingly we are told that our saving in the banks will be guaranteed 100% using the Reserve to pay up should the need arise although the DPFM doubt it will ever be required.
That aside, was a consent ever been given by the EP being the one who holds the key to our reserve. Was reasons being given as to why the reserve will be used in this Finanical crisis to the bank but no money could be used to levitate the people in the last crisis?
I am now just waiting for our beloved PM to come out and make a statement. Wonder what kind of silly statment he will make a fool of himself and a greater fool out of us ordinary Singaporeans.
Hi Steven your beloved PM is similar to Taiwan fomer president Tan S Bian.When there is a political crisis,Tan would go and hide for 2 3 weeks.He will appear again and start blaming everybody particulary china and KMT.Your beloved PM will speak in 1 2 weeks time and like SM Goh putting things in proper perspective and assure u MAS is doing the right things.
For heaven’s sake, stop bickering! The mini bond saga is due to a global melt down and some people go on bickering as though it was the result of our government handling these investments. If one wants to show frustration, direct it to parties concern – the Lehman, the local banks who sold them and the guys who bought them for a much much better returns!
It is an investment which they got their fingers burnt! Some looking for shoulders to cry perhaps. It is far important to stay focus, united and salvage from this downturn and from the mini bond saga! I am pretty sure that SM Goh, Dr.Tony Tan, Tharman Shanmugaratnam are far more adequate to handle this mini bond saga. There are far more important matters to be handled then the poor investors who got burnt – thru false selling or greed – in this Lehman Saga! I am pretty sure that our PM is directing all agendas in relation to the current downturn of the economy as well as the poor ‘burnt’ investors!!! One do not need the whole govt. to be dragged into this investment saga or patronise these investors!!!
our PM is now busy having discussion with Salary Revision committee on how to tell singapooreans that the ministers reserve another salary increase and the amount of year end bonus.to be paid.
Our PM will wait until all difficult questions have been answered by his deputies and all bombardments are taken by his ministers before he comes out and say “everybody, well done and let’s move on”. He cannot multi-task, remember? He probably “fixing and buying” now. When he is done with that task, he will come out.
Please wait…
I would like to request the PM and his colleagues to watch last night’s (ie Oct 20, 2008) GET REAL episode. Yes it was very emotional and touching to hear the stories of the misled victims. But take away the emotions, the real issue is that there was misrepresentation and misselling by the banks. High risk products have been sold under the guise of low risk products to ordinary folks by the RMs with no regard of the investors’ livelihood. Sad to say ethics is clearly missing from the banks. Law must be upheld by the Government. The whole world is watching how the government is going to handle this issue in this little red dot “financial centre” called Singapore!
Dear Tonyfatt,
Would you be able to re-produce a link of Mr Lim Hng Kiang, laughing and joking in Parliament?
Preferably some video sharing site has the video clip.
Thanks.
Regards
Chih-Yang
PM finally appeared.
He had been watching past elections of other countries like Norway and Australia apparently.
He is quite confused, I think. He cited the Australian politicians for handing out goodies during elections. Bad choice, because the australians didn’t bite at Howard’s larger offer and past 10 years of proven economic progress.
And Norway wanted to keep digging into their reserves of sort. Isn’t he trying to do the same thing?
Am I missing something?
At least, my ex-Singapore brother told me Kevin Rudd was brave enough to host a TV dialogue with those affected by the meltdown.
What did PM do?
Dear Lim Chih-Yang
I am sorry that I am unable to produce what u has asked for. I guess nobody would expect a minister to joke and laugh on this sad and serious matter and standby a camera to take video on this heartless Lim HK. During the chinese news,he joke and laugh when he repeatedly said “this is not a bailout,not a bailout, not a bailout” and he laugh followed by the MPs there which was shown on TV very clearly .The the 3 times not a bailout is reported in yestersday news paper.
Hi Tonyfatt,
No worries. Let me go search around. It is indeed sad that our ministers seems to treat this matter lightly. The article was written as it appears that the powers-that-be seems that take a position of “thats just too bad, its your problem not mine” stance. while I am certain that not all investors are a babe in the woods, there are those that are probably mislead by the RMs.
If Tan Kin Lian had not organise such mass rally, would the powers-that-be bother about it at all?
sad.
regards
Chih-Yang
5) tonyfatt on October 21st, 2008 11.46 am
channel 8 showed Lim Hng Kiang laughing cracking jokes in parliament while explaining why Singapore government was slow to act in the banking crisis compares to HK govrn. when I saw Lim HK laughing cracking jokes instead of offering some helps to the unfortunates who lost their life savings,this heartless animal was happily laughing and cracking jokes while his follow MPs also joined in the happy laughing.I feel very sad how one can elect all this heartless animal into parliament.
These heartless brats in parliament still can laugh and jokes over those old folks losing their life savings. Just wait and see when their own parents are the victims instead. Whatever goes around, comes around, thats how nature works.
If one follows the stock market on the high yield companies pattern, you will see some of the mentioned companies here are giving out high dividend yield to shareholders. Keeping the profit coming in will secure the high payout bonuses. So this has allowed price hike after price hike and this charge and that charge.
Most of the so call regulating bodies are 挂羊头卖狗肉, set up for show only.
Now is the time to test these bodies might and lets see if they will come forward……
tonyfatt – yes, I don;t like Lim Hng Kiang either. When he was the health minister , I hardly see him implement any new policy. Our current health minister -Khaw Boon Wan is different. He has implement many changes and new policies. He is one of my best minister ! He looks much older when he first joined as Health minister and I believe that is bcos he is really hardworking and a ‘worker’ .
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Uncategorized - Jan 15, 2010 10:12 - 126 Comments
It is affordable – Mah Bow Tan
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Uncategorized - Jan 15, 2010 10:12 - 126 Comments
It is affordable – Mah Bow Tan
More In Uncategorized
- Rebutting Law Minister K Shanmugam
- Challenge of communication
- TOC & Talk Politics hold successful Year in Review forum
- “Live” from Post Museum – TOC’s Year End Review
- The Fajar Generation
Long live people like TKL!