Another NUS Biz Prof Defends TCs' LOSSES!

[makapaaa]

But he's silent on the fact that the Papayas are the BEST PAID in the world!

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Dec 13, 2008
INVESTMENTS BY TOWN COUNCILS AND OTHER BODIES
</TR><!-- headline one : start --><TR>A mistake to overreact
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>




<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->THE recent barrage of news reports on the investment losses of town councils and other not-for-profit organisations has raised concerns about the role of investment in these organisations.
I hope we do not swing towards the conservative side and narrow the investment options available to these organisations.
All investments carry risk. Countries have gone bankrupt, so what is to prevent banks from failing too? To use the Lehman Brothers Minibond saga as a cautionary tale to discourage diversifying investments or seeking higher-yield investments may not be prudent.
It is always possible that one of the other large banks might have failed rather than Lehman Brothers, and if that were the case, could we in hindsight argue that we should not have invested in those banks or placed fixed deposits with them?
We need to interpret investment in the context of prevailing market conditions. When the town councils invested in those instruments, the backdrop was that inflation was expected to be 4 to 6.5 per cent and the best fixed deposit yield was 2 per cent at most. Capital-guaranteed product yields were as low as 2 to 3 per cent. Corporate bonds provided a yield of 4 to 6 per cent, but the corporates have different credit ratings.
It would have been imprudent for the stewards of town council funds to play it safe and place their reserves in fixed deposits or government bonds, as the returns would not even offset the inflation rate.
Whenever we have reserves, it is always a challenge to be a good steward. The safest option is not to do anything or just place them in fixed deposits, but is this really being a good steward on all occasions? This could be viewed as a good move, so long as the bank is sound. But the current environment tells us the security of banks cannot be taken for granted.
This may be a good time for town councils and not-for-profit organisations to craft good investment guidelines, protocols and safeguards. More important would be to craft target returns and projections so they can stabilise the returns from investment to meet current and projected spending needs.
Most important of all, I hope we do not discourage well-intentioned and competent volunteers of investment committees. In any case, town councils and not-for-profit organisations do require many more financially competent individuals to help them manage their reserves and finances.
Ho Yew Kee

http://www.bschool.nus.edu.sg/staff_profile//cv.asp?ID=41

<TABLE width="100%"><TBODY><TR><TD style="BORDER-RIGHT: #999999 1px solid; BORDER-TOP: #999999 1px solid; BORDER-LEFT: #999999 1px solid; BORDER-BOTTOM: #999999 1px solid" align=middle width=120 rowSpan=7>

</TD><TD width=20> </TD><TD colSpan=2 height=30>HO YEW KEE</TD></TR><TR vAlign=top align=left><TD width=4> </TD><TD colSpan=2 height=30>Associate Professor </TD></TR><TR vAlign=top align=left><TD width=4> </TD><TD width=112>Office:</TD><TD>BIZ1 03-11 </TD></TR><TR vAlign=top align=left><TD width=4> </TD><TD width=112>Contact:</TD><TD>(65) 6516-3024 </TD></TR><TR vAlign=top align=left><TD width=4> </TD><TD width=112>Email:</TD><TD>[email protected] </TD></TR><TR vAlign=top align=left><TD width=4> </TD><TD colSpan=2>
Curriculum Vitae </TD></TR></TBODY></TABLE>

 

[chupacabra]

Before any "investments" can take place, the people investing with residents money have to be transparent first.

When I pay money to Town council, no one told me it would be used suka - suka. I was told it would be used for upkeep and upgrading porpurses.

 

[theblackhole]

what about the losses by private country clubs like seletar country club?

anyone got any idea how much singapore has lost during this financial debacle?

how come the private condo MC sinking funds so quiet? too many losses???

anyone knows anything about this secret losses???

 

[DerekLeung]

Who has the command of the Singapore police has the Roman soldiers !

 

[Porfirio Rubirosa]

What I would like to know is why the bloody hell did ST have to publish this PAP stooge's letter TWICE on 2 consecutive days, once online yesterday and again in print today

 

[Einfield]

What I would like to know is why the bloody hell did ST have to publish this PAP stooge's letter TWICE on 2 consecutive days, once online yesterday and again in print today

Any government, who try to control the media, have something to hide.

 

[jixiaolan]

His own biz faculty Dean also suffered personal losses in minibond investment. What can i say? When you allow a group of clowns to manage yr money, this is wat will happen. A genuine case of honest mistake and as usual...let's move on. Lol

 

[myfoot123]

He simply want pap attention. Probably someone with ulterior motive, ambition has clouded his thinking. Pity.

 

[kaipoh]

you think PAP want this poly grad?

 

[popdod]

OVER REACT???

Of coz lah.....not his money, he got a stable income, got a stable job.
Nothing is over react.

This ppl really use mouth to talk niah.
Talking and doing is 2 different thing.


:(

 

[darememore]

But he's silent on the fact that the Papayas are the BEST PAID in the world!

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Dec 13, 2008
INVESTMENTS BY TOWN COUNCILS AND OTHER BODIES
</TR><!-- headline one : start --><TR>A mistake to overreact
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>




<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->THE recent barrage of news reports on the investment losses of town councils and other not-for-profit organisations has raised concerns about the role of investment in these organisations.
I hope we do not swing towards the conservative side and narrow the investment options available to these organisations.
All investments carry risk. Countries have gone bankrupt, so what is to prevent banks from failing too? To use the Lehman Brothers Minibond saga as a cautionary tale to discourage diversifying investments or seeking higher-yield investments may not be prudent.
It is always possible that one of the other large banks might have failed rather than Lehman Brothers, and if that were the case, could we in hindsight argue that we should not have invested in those banks or placed fixed deposits with them?
We need to interpret investment in the context of prevailing market conditions. When the town councils invested in those instruments, the backdrop was that inflation was expected to be 4 to 6.5 per cent and the best fixed deposit yield was 2 per cent at most. Capital-guaranteed product yields were as low as 2 to 3 per cent. Corporate bonds provided a yield of 4 to 6 per cent, but the corporates have different credit ratings.
It would have been imprudent for the stewards of town council funds to play it safe and place their reserves in fixed deposits or government bonds, as the returns would not even offset the inflation rate.
Whenever we have reserves, it is always a challenge to be a good steward. The safest option is not to do anything or just place them in fixed deposits, but is this really being a good steward on all occasions? This could be viewed as a good move, so long as the bank is sound. But the current environment tells us the security of banks cannot be taken for granted.
This may be a good time for town councils and not-for-profit organisations to craft good investment guidelines, protocols and safeguards. More important would be to craft target returns and projections so they can stabilise the returns from investment to meet current and projected spending needs.


Who give them the permission to use the sinking fun ? You ? Me ? The citizen of those estate ?... These MF must be held resposible and not let them try to find excuses.

When a citizen owes the town council fees, he is charge in court and jailed if he cannot pay. His flat will be taken back if he still cannot pay..(we are talking about a few hundreds to a maybe 2k)

Now that they had lost millions they must be held responsible !