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Structured products – difference between S’pore and Hong Kong

Rachel Chung takes the MAS to task.

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Update: In ParliamentMinister for Trade and Industry and Deputy Chairman of the Monetary Authority of Singapore said: “The MAS approach allows for a wider range of Singapore investment options to cater for diverse needs while keeping the regulatory framework”, which Mr Lim described as “fundamentally sound”. (Channel NewsAsia).

Rachel Chung / Columnist

Previously, I did not want to write about this issue because I did not want to pre-judge how MAS and the government will handle this issue. The silence, the position to distance itself, the local media blackout on HKMA decision and the eventual “breaking-news speed” of the local media coverage once again prove me right when I do not want to be.

Media Coverage

I am disgusted with how sensational journalism is being lent to invoke cheap emotions when there was raw sorrow involved. These photos are splashed across the front page of ST to show Mrs Ling “looking visibly less upset than last week…welcomed the Government’s move to help”.

I am disgusted at how the government is cited as a “hero” again. Well, get this straight. MAS only stepped out and issued a statement after Mr Tan Kin Lian’s event to help the affected folks drew thousands. It took a citizen to do the duty of what government people should do. The alarm bells must have gone off in a few government sectors. The government only issued a guarantee of deposits after HKMA pressured their banks to buy back minibonds products.

This is to ensure Singapore’s competitive advantage in the banking and finance sector and I believe, not out of any real sympathy for the people. And have the ministers or MAS ever stopped to ponder on why the banks in Hong Kong would agree to buy back the products? Why did their government or HKMA not pander to the banks?

And please. The ST headline on 18 Oct 08 made me want to vomit. “MAS to Banks: Do the Right Thing”. It was Tan Kin Lian who first blogged and told MAS to do the right thing!

The accountability of MAS

A financial dodo like me might not know how to read a financial product sheet but any qualified and probably overpaid snazzy economist or finance expert in MAS should know and should have known that the product sheets for Minibonds were dodgy. Time for the blame game soon.

The government likes to proclaim that it has no power or control over Temasek Holdings – would it be another skit of how MAS has no jurisdiction or power over banks? In the bid to whore out to banks making their global presence here, are we prepared to screw our people over offending them?

Difference between Hong Kong and Singapore

While Chief Executive of Hong Kong, Donald Tsang “pledged to help those caught up in the Lehman Brothers minibond row get justice if any criminal or civil liability is identified“, our MAS chairman, Mr Goh Chok Tong says that “that’s life, if you want good rewards, you have to take risks. Otherwise, leave your money with the CPF.” and that “MAS is a very professional, rational institution” Oh yes, that I have no doubts about. The MAS is indeed extremely professional and rational towards banks. What is the stance of MAS towards the people?

MAS managing director, Mr Heng Swee Keat, says “We expect them to do the right thing” … “to be accessed on a case-by-case basis“. Am I the only person who feels that such a statement is not straightforward and can be interpreted in creative ways?

While Mr Joseph Yam, Chief Executive of the HKMA, said that the role of the HKMA is to investigate complaints of mis-selling against banks – “The HKMA is dealing with the complaints as quickly as possible.  It is, of course, very important that we do this objectively and without pre-judging the issue.  If, after investigation, we find cases of mis-selling, we will treat them very seriously“; our MAS says that it has “asked the chief executive officer of these [financial] institutions to personally chair internal review panels to look into these complaints.” I am sure these CEOs will be totally impartial and there will be no conflict of interest to consider.

The Selfish Singaporean

Those people who are all smug and arrogant about how they “would not be cheated” or “would not buy something they do not understand” seem to have missed the point that the product was angled to be deceptive or dodgy in the place. Yes, at this point of time, we are all so interested to know your wisdom of diversified investments and how you are not so dumb like some old uneducated folks. Haven’t heard of saying the right thing at the right time?

Yes, I run the risk of sounding stupidly sentimental for objecting to such callousness, but look – gloat privately instead of rubbing salt in wounds, ok?

The feedback we have been getting is that mis-selling is rife. I have been getting calls from investors who say that their relationship managers told them it’s like a fixed deposit and that at the end of 5.5 years, they are getting 5% returns. Tell me that is not mis-selling.

I have my investment principles too but taking a cheap satisfaction at a time like this would belie anyone’s upbringing and basic sense of decency.

How you can help

Mr Tan Kin Lian is helping the minibond investors to seek redress. As such, he needs volunteers to help the investors write their statement of claim, as there are a few thousand statements to be written.

The statement will be based on the questions contained in section 1 of this paper:
http://tankinlian.blogspot.com/2008/10/general-advice-to-investors-of.html

If you volunteer, please send your particulars (i.e. name, e-mail address, telephone number, and postal code, language) to [email protected]. He will put your particulars for the investors to contact you. As some of us might be inexperienced in dealing with such situations, Mr Tan will also kindly arrange a briefing to the volunteers on how to write the statement.

You can also read his advice to investors here.

Lucky Tan had compiled a list of questions to Parliament. Let’s see how the development pans out.

———–

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Indonesia

Miss Universe cuts ties with Indonesia chapter after harassment allegations

The Miss Universe Organization severs ties with Indonesia franchise due to harassment claims. Malaysia edition canceled.

Women allege body checks before pageant. Investigation launched. Safety prioritized.

Indonesia winner to compete in November finale. Height requirement controversy.

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WASHINGTON, UNITED STATES — The Miss Universe Organization has cut ties with its Indonesia franchise, it announced days after allegations of sexual harassment, and will cancel an upcoming Malaysia edition.

In the complaint, more than a half dozen women said all 30 finalists for Miss Universe Indonesia were unexpectedly asked to strip for a supposed body check for scars and cellulite two days before the pageant’s crowning ceremony in Jakarta.

Their lawyer said Tuesday that five of the women had their pictures taken.

“In light of what we have learned took place at Miss Universe Indonesia, it has become clear that this franchise has not lived up to our brand standards, ethics, or expectations,” the US-based Miss Universe Organization posted Saturday night on social media site X, formerly known as Twitter.

It said that it had “decided to terminate the relationship with its current franchise in Indonesia, PT Capella Swastika Karya, and its National Director, Poppy Capella.”

It thanked the contestants for their bravery in coming forward and added that “providing a safe place for women” was the organization’s priority.

Jakarta police spokesman Trunoyudo Wisnu Andiko said Tuesday that an investigation into the women’s complaint has been launched.

The Indonesia franchise also holds the license for Miss Universe Malaysia, where there will no longer be a competition this year, according to the New York-based parent organizer.

In a lengthy statement posted to Instagram, Indonesia franchise director Capella denied involvement in any body checks.

“I, as the National Director and as the owner of the Miss Universe Indonesia license, was not involved at all and have never known, ordered, requested or allowed anyone who played a role and participated in the process of organizing Miss Universe Indonesia 2023 to commit violence or sexual harassment through body checking,” she wrote.

She added that she is against “any form of violence or sexual harassment.”

The Jakarta competition was held from 29 July to 3 August to choose Indonesia’s representative to the 2023 Miss Universe contest, and was won by Fabienne Nicole Groeneveld.

Miss Universe said it would make arrangements for her to compete in the finale, scheduled for November in El Salvador.

This year’s Indonesia pageant also came under fire for announcing a “significant change in this (year’s) competition guidelines” with the elimination of its minimum height requirement after it had crowned a winner.

In its statement, the Miss Universe Organization said it wanted to “make it extremely clear that there are no measurements such as height, weight, or body dimensions required to join a Miss Universe pageant worldwide.”

— AFP

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Malaysia

A Perodua service centre in Kuantan, Malaysia went viral for its strict dress code, Perodua responds

A dress code for vehicle servicing? A Malaysian car brand’s service centre dress code signage has puzzled netizens, raising queries about the need for attire rules during a routine service.

The manufacturer responded with an official statement after a flurry of comments, seeking to clarify and apologize.

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MALAYSIA: A dress code signage positioned at a service centre belonging to a prominent Malaysian car brand has sparked bewilderment among Malaysian netizens, who question the necessity of adhering to attire guidelines for a simple vehicle servicing.

The signage explicitly delineates clothing items that are deemed unsuitable, including sleeveless tops, short skirts, abbreviated pants, and distressed jeans.

The car manufacturer swiftly found itself flooded with comments from both inquisitive and irked Malaysian netizens. This surge in online activity prompted the company to issue an official statement aimed at clarifying the situation and extending an apology.

In a post that gained significant traction on the social media platform, politician Quek Tai Seong of Pahang State, Malaysia, shared an image to Facebook on Monday (7 Aug).

The image showcased a dress code sign prominently displayed at a Perodua Service Centre in Kuantan. Within the post, Quek posed the question: “Is this dress code applicable nationwide, or is it specific to this branch?”

The signage reads, “All customers dealing with Perodua Service Kuantan 1, Semambu, are requested to dress modestly and appropriately.”

Adding visual clarity to these guidelines, the sign features illustrative graphics that explicitly outline clothing items deemed unacceptable, including sleeveless tops, short skirts, short pants, and ripped jeans.

Delineating the specifics of the dress code, the signage stipulates that male visitors are expected to don shirts accompanied by neckties, opt for long pants, and wear closed shoes.

Conversely, female visitors are advised to don long-sleeved shirts, full-length skirts, and closed-toe footwear.

Perodua’s dress code sparks online uproar

Following the rapid spread of the post, Perodua’s official Facebook page found itself inundated with comments from both intrigued and frustrated Malaysian netizens, all seeking clarifications about the newly surfaced dress code policy.

Amidst the flurry of comments, numerous incensed netizens posed pointed questions such as, “What is the rationale behind the introduction of such regulations by the management? We demand an explanation.”

Another netizen expressed their dissatisfaction, arguing against the necessity of the rule and urging Perodua to take inspiration from the practices of other 4S (Sales, Service, Spare Parts, and Survey) automotive dealerships.

A concerned Facebook user chimed in, advocating for a more lenient stance, asserting that attempting to dictate customers’ clothing choices might not be in the company’s best interest.

Someone also commented in an angry tone, “Oi what is this? Going there for car service, not interview or working, right.”

As the discourse unfolded, it became evident that while some inquiries carried genuine weight, others chose to inject humor into the situation, playfully remarking, “If I wanted to buy a Myvi, I should buy or rent a formal attire first.”

“I sell economy rice at a hawker centre, I have never worn a long sleeve shirt and a tie… I guess I will not buy a Perodua car then.”

“I guess they will not serve those who wear short pants.”

Perodua addresses dress code controversy

As reported by Chinese media outlet Sin Chew Daily News, the manager of Kuantan’s Perodua Service Centre had acknowledged that the images on the dress code signage were misleading.

In response, the manager divulged that discussions had transpired with the head office, leading to the prompt removal of the signage to prevent any further misconceptions.

The manager clarifies, “We do encourage visitors to adhere to the dress etiquette, but we won’t go to the extent of restricting their choice of attire.”

He also revealed that currently, no complaints have been directly received from the public.

However, feedback from certain customers was relayed through Perodua’s agents.

Perodua also released an official statement by chief operating officer JK Rozman Jaffar on Wednesday (9 Aug) regarding the dress code on their official Facebook page.

The statement stated the dress code etiquette is not aligned with their official guidelines and they are currently conducting an official investigation on the matter followed by corrective measures to avoid the same incident from happening.

Perodua also extends its apologies for any inconvenience caused.

 

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