Banks and FIs, pls do the right thing.. How?

many would be happy with 50% refund

Singapore Way
MAS said, "If the investors had been mis-sold the product or where the product was clearly inappropriate to their circumstances, MAS expects the FIs to take full responsibility... fair settlement .. to be assessed on case by case basis"

How to assess?
The current definition of "vulnerable" customers are uninformed elderly, retirees with limited savings and those not English-proficient to understand the product literature.

If you open one door to an old illiterate lady, hundred of others would claim to be illiterate too. If FI pay to the old lady as "mis-sold", will it open the doors for others to take legal action on this basis?

Hong Kong Way
From what I understand, the government is asking the respective banks and FIs to partially refund the monies to all.. perhaps 30%?

Which is the better way?

Mr Tan Kin Lian to run for President?

You mean the man is doing all those things at Hong Lim Park and dealing with the pain of more 600 people when he has not got a single cent at stake in Minibonds or Hi-notes, as a pre-cursor to his bid for presidency?

I saw the headline for the Chinese paper. But as I can't read Chinese, I know no more than it is. I declare that I have worked with him in my years with NTUC Income.

Can someone please ask him this question directly? Or has he been asked and his answer is already reported in the paper? Then can someone please tell me his answer. I am really curious.

Why 21% increase in electricity tariff?

a vacant land for now

In yesterday's ST, Ms Jenny Teo, Director of Corporate Communications of Energy Market Authority (EMA) tried to explain the massive increase in tariff for Oct/Nov/Dec quarter.

Allow me to summarise her response first.

The tariff is set quarterly in advance against the prevailing fuel oil price.

Why pegged against fuel oil price when 80% of electricity produced is generated using natural gas? Answer - While the gas supply has been secured with long term contracts but its price floats with fuel oil price as per market practice. [Given the massive tariff fluctuation, should EMA consider alternative arrangements? Or the whole Singapore should continue to subject itself to these shocks?]

She said oil price went up sharply in July. [I am sure it did. But what I am not sure is the magnitude of how that affect the tariff by SO MUCH.]

Ms Teo said it has nothing to do with F1 on its electricity consumption.

Ms Teo also said the increase in tariff is also not linked to the privatisation of the electricity industry. She said the privatisation process should be in consumers' interest.

My views
Firsly, as an accountant, I will be convinced when I see the costing figures. Of course, Ms Teo will not share that info with the whole Singapore.

An investor must justify the billions of dollars paid for the power plant investments with an appropriate yield. So how did the seller justify the yield to prospective investors?

Secondly, I am still not convinced with the existing public-listed public transport companies being regulated by Public Transport Council (or something like that). For so many years, the management of these companies have to play between profit maximisation and fulfilling their respective public role.

We have now created another situation of selling our power generation companies to private companies and the existence of Energy Market Authority.