Saturday, October 31, 2009
Observation by David Cherbronnier
David Cherbonnier has made some insightful comments about what is needed to put things right in Singapore. Read his comments here.
Dependent adults - victims or spoiled brats?
Read this article.
And here is my view. They are the results of the failed capitalism and false prosperity (build on asset bubbles) of the past two decades.
Asset prices went up too high. The current generation is affluent. But the next generation cannot afford these prices. And their earnings will be low - due to globalisation, international competition and other reasons. So, they have to depend on the generosity of their parents.
They are not spoiled brats. They are placed in an unfair world. This is largely the fault of the previous generation.
And here is my view. They are the results of the failed capitalism and false prosperity (build on asset bubbles) of the past two decades.
Asset prices went up too high. The current generation is affluent. But the next generation cannot afford these prices. And their earnings will be low - due to globalisation, international competition and other reasons. So, they have to depend on the generosity of their parents.
They are not spoiled brats. They are placed in an unfair world. This is largely the fault of the previous generation.
Need to put things right in Singapore
Senior Minister Goh Chok Tong paid a visit to his ancestral village in China. An astute observer commented that the visit was intended to show that Singapore is a nation of immigrants and that the local people should welcome the new immigrants from China, India and other countries.
My late father came to Singapore from China 70 years ago. I also visited my ancestral village 20 years ago. I understand the sentiment.
I now have many friends who are recent immigrants into Singapore. I support and welcome their decision to make their future and home in Singapore.
But, I have to say these words on behalf of the local Singaporeans who appeared to be resentful of the competition for jobs, homes and space from new immigrants.
There are many things that need to be put right in Singapore. We are seeing the consequences of many decades of the policy of the current Government. They include:
a) A declining birth rate causing by the insecurity and unsatisfactory quality of life in Singapore
b) The burden of National Service faced by male Singaporeans, including competing for jobs
c) The loss of trust in our commercial and government institutions
d) An unjust society; the small people being treated unfairly
e) The loss of pride in being Singaporeans
Some of these issues have been voiced by many people, including me, over the past years. We need to address them and put things right, so that there is greater unity and cohesion among the people of Singapore. If we are confident and strong as a people, we will be able to welcome the new immigrants and help to integrate them into our Singapore society.
Tan Kin Lian
NOTE TO COMMENTORS.
If you wish to give your honest views, please sign off your comment will your real name - so that it carries more weight.
My late father came to Singapore from China 70 years ago. I also visited my ancestral village 20 years ago. I understand the sentiment.
I now have many friends who are recent immigrants into Singapore. I support and welcome their decision to make their future and home in Singapore.
But, I have to say these words on behalf of the local Singaporeans who appeared to be resentful of the competition for jobs, homes and space from new immigrants.
There are many things that need to be put right in Singapore. We are seeing the consequences of many decades of the policy of the current Government. They include:
a) A declining birth rate causing by the insecurity and unsatisfactory quality of life in Singapore
b) The burden of National Service faced by male Singaporeans, including competing for jobs
c) The loss of trust in our commercial and government institutions
d) An unjust society; the small people being treated unfairly
e) The loss of pride in being Singaporeans
Some of these issues have been voiced by many people, including me, over the past years. We need to address them and put things right, so that there is greater unity and cohesion among the people of Singapore. If we are confident and strong as a people, we will be able to welcome the new immigrants and help to integrate them into our Singapore society.
Tan Kin Lian
NOTE TO COMMENTORS.
If you wish to give your honest views, please sign off your comment will your real name - so that it carries more weight.
SCMP:SFC seeks to regulate minibonds
31 Oct 2009
A major regulatory loophole exposed by the Lehman Brothers minibond fiasco is to be plugged under a Securities and Futures Commission proposal that will require all structured products sold to the public to be regulated by it.
Although the SFC is responsible for authorising all mutual fund products, it does not cover structured products such as the minibonds issued or guaranteed by Lehman.
After Lehman's collapse last year, these products became worthless, sparking more than 21,000 investor complaints to the SFC and the Hong Kong Monetary Authority.
Minibonds are not corporate bonds, but risky credit-linked notes that were not subject to SFC regulation because under the law, structured products such as minibonds are classed as debentures and fall under the Companies Ordinance.
The SFC yesterday proposed to plug the loophole by changing the law to transfer the regulation of public offerings of structured products in the form of debentures from the Companies Ordinance to the Securities and Futures Ordinance.
So, unless an exemption applies, unlisted structured products, their offering documents and marketing materials will have to be authorised under the SFO before being offered to the public.
"This will allow the SFC greater flexibility to regulate public offers of unlisted structured products by setting out appropriate standards in the new code on unlisted structured products," the SFC said.
The consultation will last two months.
Legislator Chim Pui-chung, who represents the financial services sector, said it was a move in the right direction. "After this proposed law change, the SFC will have the power to regulate these products. This is a good first step but it cannot solve all the problems," he said.
"The SFC will also need to set tough disclosure standards to require investment banks issuing structured products to disclose all the risks to investors.
"All salespeople must also behave themselves by not mis-selling the products. Otherwise, it still may not prevent a repetition of the minibond fiasco."
A major regulatory loophole exposed by the Lehman Brothers minibond fiasco is to be plugged under a Securities and Futures Commission proposal that will require all structured products sold to the public to be regulated by it.
Although the SFC is responsible for authorising all mutual fund products, it does not cover structured products such as the minibonds issued or guaranteed by Lehman.
After Lehman's collapse last year, these products became worthless, sparking more than 21,000 investor complaints to the SFC and the Hong Kong Monetary Authority.
Minibonds are not corporate bonds, but risky credit-linked notes that were not subject to SFC regulation because under the law, structured products such as minibonds are classed as debentures and fall under the Companies Ordinance.
The SFC yesterday proposed to plug the loophole by changing the law to transfer the regulation of public offerings of structured products in the form of debentures from the Companies Ordinance to the Securities and Futures Ordinance.
So, unless an exemption applies, unlisted structured products, their offering documents and marketing materials will have to be authorised under the SFO before being offered to the public.
"This will allow the SFC greater flexibility to regulate public offers of unlisted structured products by setting out appropriate standards in the new code on unlisted structured products," the SFC said.
The consultation will last two months.
Legislator Chim Pui-chung, who represents the financial services sector, said it was a move in the right direction. "After this proposed law change, the SFC will have the power to regulate these products. This is a good first step but it cannot solve all the problems," he said.
"The SFC will also need to set tough disclosure standards to require investment banks issuing structured products to disclose all the risks to investors.
"All salespeople must also behave themselves by not mis-selling the products. Otherwise, it still may not prevent a repetition of the minibond fiasco."
Benefit illustration - samples
Here are samples of the benefit illustrations, with an explanation on how to read them. In all cases, the effect of deduction are too high and do not give good value to the consumer.
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