NDR 2009 and Navel Gazing Disappointment

August 17, 2009 at 7:08 pm (Getting By)

There was lots of talk on race and religion’s delicate balance in Singapore. At least for me, it was preaching to the choir and I am already a convert on the importance of mutual respect on race and religion. I don’t like the word tolerance as there are implied messages that X is not liked, but it is tolerated or Y is irritating, but it is tolerated. Respect, not tolerance, for different races and religions is a better idea to establish in the minds of the average Singaporean.

The recession is still around us but the government has not given any handouts this NDR surprisingly. The economy might be that bad that they are tightening their belts. Also, no handouts is a writing on the wall that an election is not around the corner at least for the next 9 months, since the Budget in February 2010 is another window for angpows. I wasn’t expecting any focus on political space, but I certainly didn’t expect race and religion to be the engine driving the whole of the NDR. The messages of peaceful co-existence and respect in multi-ethnic Singapore is an important one, looking at how Malaysia is at the precipice of  racial chaos, but it is an inappropriate one for this rally during this gloomy period. Where were the subsidies and rebates I was anticipating?

Or am I just another spoiled pampered Singaporean dependent on goodies every NDR and Budget and lost sight of the big picture?

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NDR 2009 and Wish for Rebates and Subsidies

August 16, 2009 at 2:06 pm (Getting By)

NDR goes social media. Impressive indeed following Obama’s social media campaign.

Prime Minister’s Office : http://www.pmo.gov.sg
Channel NewsAsia : http://ndr09.channelnewsasia.com
Facebook : http://www.facebook.com/REACHSingapore
#ndrsg : http://twitter.com/Reach_Singapore
REACH web site : www.reach.gov.sg/ndrsg
Prime Minister’s Office YouTube channel : http://www.youtube.com/pmosingapore

Last year, the PAP government relaxed rules on Speakers’ Corner and that protests can be held there. The government also relaxed rules on the campaigning in the internet during elections. During the 2006 rally, the government for the first time acknowledged the digital divide in such a setting, following the election that year. I don’t think there will be more such soft touch rhetoric this year tonight during the rally. Such soft touch or no touch promises are nice but with a bad economy still in the horizon, I want the government to focus more on subsidies and rebates rather than political space specifically.

What will the HDB conservancy rebates be? What about income tax? Last year, it was an attractive 20% rebate capped at $2000. Will there be a public transport handout into Ezy link cards to encourage public transport use? A GST rebate would also be timely now.  I hope to see a more emphatic government this year and tonight’s NDR is a good chance for them to show understanding of the financial difficulties affecting most of us.

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Is the Bear Talking Bull?

August 3, 2009 at 1:40 pm (Getting By)

Sentiment, not facts, is the order of the day. From political myths to the mad rush for mass market condos, we believe what we want to believe although the facts scream otherwise.  Good news amid all the bad news for our national carrier nonetheless.

Optimism Over Singapore Air Is Unfounded

It is difficult to understand bullishness about Singapore Airlines when the carrier itself is warning of a difficult year.

The airline Thursday posted a $212 million loss for the quarter ended June and said it could be headed for its first ever full-year loss. Analysts collectively expected a near break-even quarterly figure, and still forecast an annual profit.

The surprise in the results was not so much the losses from the carrier’s positions on jet-fuel prices but the size of the hit to both passenger and cargo yields, which fell 18% and 33% respectively.

[SIA]

Passenger yields were last at this level in the first quarter of fiscal 2005, says the Centre for Asia Pacific Aviation. However, the airline’s costs have risen 32% since then.

Never mind, bullish analysts say. A turnaround for both cargo and passenger segments is near as global trade recovers and Singapore Air’s high paying passengers return to the skies later this year. The airline generates about 60% of its profit from business and first class passengers.

This is a tricky case to make. The H1N1 virus has already had a bigger impact on travel in Asia than many expected.

The long haul market upon which Singapore Air relies for much of its revenue — nearly three quarters come from flights to destinations outside of East Asia — could be slow to recover as businesses hesitate to fund long-distance travel, and tourists stay closer to home.

Cargo demand may have bottomed earlier this year, but a substantial recovery in global trade of goods that can be air freighted needs a pickup in consumption in the West — still a distant prospect.

Neither is Singapore Air trading at historically low valuations. The stock’s 20% recovery so far this year puts its price to expected book value ratio at 1.10, says Mirae Asset Securities analyst Jay Ryu. The last time Singapore Air posted a quarterly loss, during the 2003 SARS outbreak, its share price fell below book value.

And that was a relatively short-term hit.

At a shareholder meeting Friday, Chairman Stephen Lee said he anticipates a “prolonged period” of slackened demand.

The bulls, it seems, are deaf to the airline’s own warnings.

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Spring is Here

July 14, 2009 at 7:53 pm (Getting By)

Optimism is in the air. However, one must read between the lines. This increase in selected exports is because of stock replenishing, after inventories are used up when companies wound down production in recent months. The US, a major global importer, still continued an import decline for the 10th month in a row. The country is not buying and importing enough to pull the global economy out of recession. Besides, the fundamentals in USA still remain unsound. Home loan mortgage rescue might be faltering and with it, another round of credit crunches and banking shudders is expected. I want to be wrong but optimism is still too early. Good luck to those prospectors who snapped up condos in Singapore recently as they were riding on the optimistic wave that spring is here. They might have found Fools’ Gold instead and put more pressure on the anticipated mortgage foreclosure round here.

By Martin Abbugao

SINGAPORE (AFP) — Singapore announced its economy grew for the first time in a year in the second quarter, suggesting the city is emerging from its worst recession and offering hope for other battered Asian economies.

Powered by electronics and biomedical exports, the economy soared 20.4 percent in the three months to June compared with the first quarter on a seasonally adjusted annualised basis, the Ministry of Trade and Industry said.

A Dow Jones Newswires poll of 10 analysts had tipped an average 14.1 percent economic expansion. It was the first quarter-on-quarter growth in five quarters.

Gross domestic product (GDP) is now expected to contract 4-6 percent for the year, better than an earlier projection of 6-9 percent, but the ministry warned that any recovery would be weak due to the fragile global economy.

Trade-driven Singapore last sank into a recession in 2001 when the economy shrank 2.4 percent, its worst slump since gaining statehood in 1965.

It became the first Asian economy to slip into recession in the second half of last year after a financial and economic crisis that started in the United States hit demand for its exports.

Tuesday’s data meant that Singapore is the first of the Asian countries hit by recession to release statistics pointing to a recovery.

Compared with the previous year, however, output in the June quarter was down 3.7 percent, indicating that the economy remained weak.

“The economy is growing again,” said David Cohen, an economist with research house Action Economics.

“Growth won’t be very strong but it should remain in an upward trajectory,” he told AFP.

Tuesday’s data compare with a 14.6 percent quarter on quarter contraction in the three months to March.

DBS Group called it a “stunning turnaround” in line with its forecast.

CIMB-GK economist Song Seng Wun said Singapore’s June quarter rebound boosts hopes that the worst is also over for China, South Korea, Hong Kong, Taiwan and other Asian economies affected by the global crisis.

“Because Singapore has an open economy and has the highest exports to GDP ratio, its performance reflects any improvement or deterioration in global demand,” Song said.

Despite the quarter-on-quarter growth, the trade ministry cautioned that “the outlook for the rest of the year remains largely unchanged: of a weak recovery susceptible to downside risks.”

“At this juncture, there is no evidence yet of a decisive improvement in final demand,” the ministry said, adding the second quarter surge “may not be sustained.”

The key manufacturing sector contracted by 1.5 percent in the June quarter, compared with a 24.3 percent shrinkage in the previous three months, reflecting the spike in pharmaceuticals and electronics, the ministry said.

But the services sector, which accounts for two-thirds of the economy, continued to shrink with a decline of 5.1 percent in the June quarter from a year ago, it said.

It noted that rising unemployment and reduced consumer spending in major export markets such as the United States and Europe reflected the continued weakness in the global economy.

The June quarter figures are computed mainly from the April-May period and the ministry is expected to release a more detailed picture in the next few weeks.

Action Economics’ Cohen predicted that “this will be the first in a series of upbeat GDP reports for the second quarter from Asian economies.”

“Maybe this will provide some reassurance to the markets which have been jittery in the last few weeks about the sustainability of the recovery. It shows that Asian economies have turned the corner in the second quarter.”

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Off with the Heads!

June 19, 2009 at 4:52 pm (Getting By)

Heads rolling at the operations level? GIC’s loss of $50 billion has resulted in some face-saving staff shuffling, just like how Temasek’s Ho Ching was shown the door a few months ago.

When Citigroup was tottering at the start of this year and probably with the threat of nationalisation if GIC did not play ball with the US government, GIC was forced to convert its preferred shares (bought at $26.35) which pays out interest at 7% per annum, to common stock (priced at $3.25). From what I know, as Citigroup shares then were worth $1 plus but GIC was given a higher $3.25 for each share, this confusing conversion ended up in GIC owning 11% of Citigroup instead of 4%. With the nationalisation of Citigroup nowhere in sight now, GIC looks like it can slump down in relief temporarily. However, the past months since GIC bit into Citigroup and UBS have been risky ones with no real returns in sight. The GIC board has not forgotten and likely think that this is a good time as any to change those at GIC’s operations helm.

Singapore’s GIC names new president, mgt reshuffle

SINGAPORE, June 18 (Reuters) – The Government of Singapore Investment Corp (GIC), which manages an estimated $200 billion-plus in assets, on Thursday named Lim Siong Guan as its group president from July 1.

Lim, a former head of Singapore’s civil service, will also be chairman of GIC Asset Management, the largest of its three operating units and responsible for investments in equities, fixed income, foreign currencies and natural resources. The unit is also responsible for the fund’s absolute returns strategies.

Lim, 62, will take charge of organisational development at GIC Asset Management as well as sister units GIC Real Estate, which handles property, and GIC Special Investments, which takes care of private equity and infrastructure investments.

“The management changes will enable GIC to operate more effectively on an integrated basis,” GIC Deputy Chairman and Executive Director Tony Tan said in a statement.

GIC, which manages Singapore’s foreign currency reserves, has ploughed billions into Citigroup (C.N: Quote, Profile, Research) and UBS and has said it will stick with its investments despite smaller sovereign wealth fund Temasek’s recent move to offload shares in Bank of America and Barclays.

Singapore’s two funds have suffered from the global market turmoil, with GIC’s portfolio falling 25 percent from a peak estimated at $300 billion, while Temasek’s assets declined by 31 percent during March-November last year.

Lee Ek Tieng, 75, another former civil service head, will retire as chairman of GIC Asset Management, while former finance minister Richard Hu, 82, will step down as chairman of GIC Real Estate.

Tan will replace Hu as chairman of GIC Real Estate.

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Our Architecture

March 6, 2009 at 6:37 pm (Getting By)

Like all modern cities, Singapore’s architecture is a mix of cool and crass. Sentosa is an example of something that is turning crass to cool in my book when the casino and its entertainment centres open up.  Whenever foreigners or even locals blurt that Singapore’s buildings and spaces have no character, I am amazed how myopic they are. Slums and ghettos in a city do not necessarily mean character.  An overenthusiastic URA or HDB still contribute to the sense of identity and also culture-character with every glance we make around us everyday.  Without a doubt what entails character in a place is subjective and contested but there is always character. A seeming lack of character by itself is character if one is objective about it.  Anyway read on this enjoyable oped about shifts in Singapore’s use of space and place.


Singapore’s architecture development
Singapore architecture has grown to include buildings that inspire and are responsive to its environment and culture.

by Shang Zong Wei

Singapore’s architecture has grown from being purely pragmatic, industrial blocks, to buildings that inspire and are responsive to its environment and culture.

Historically, Singapore has been well regarded for its strategic geographical location, and a government that is determined against all odds to achieve success. Both aspects have worked in sync in securing a unique place on the world map for the island nation since its independence in 1965 – though not without a stroke of luck. In the traditional Asian manner of saying, the Heaven, Earth and Man aspects are symbiotically in tune. Singapore’s architecture was literally born out of such circumstances, and will continue to evolve through such driving forces.

In Singapore, the pressing concern at all time has been about survival – that of an island without natural resources in an ever competitive world. Hence, private patronage aside, political will is of paramount importance to creating the conditions that have shaped Singapore’s architecture. From the very pragmatic building solutions at the initial stages of nation building to the recent thematic development trends, the central consideration is to make Singapore an attractive place that will ensure the nation’s relevance in current as well as any foreseeable future contexts. Perhaps in layman’s terms, it is about how Singapore can be marketed to global investors, as if it is some sort of a product for sale; while at the same time, how it can still remain a comfortable home and retain local talent.

Because it has to stay relevant, there will be constant needs to reinvent and repackage it to suit. Hence, at some point in time, sensitivities with regards to cultural roots/identities versus modernisation needs/social ills will have to be addressed. And a comprehensive mechanism of public institutions is needed to facilitate the various processes. At broad macro-levels, such are the unique parameters that nurture Singapore’s architecture.

As with all things, the development of Singapore’s architecture is an ongoing process, with many aspects taking place concurrently, intermittently or continually. While the intricacies are best left to academics, for convenience sake, one may choose to view it in the following necdotal/chronological frames:

The pre/post-independence years from the 1960s to the 1970s were the formative periods in nation building, which witnessed the development of new towns, rapid construction of mass housing blocks, utilities improvement/sanitation works, extensive public infrastructure projects and the launch of the ‘Tree Planting’ campaign to create the image of a ‘Garden City’.

Like most parts of the world, Singapore’s architecture was subject to the omnipotent influence of the ‘International Style’, then thought to be a convenient, if not ideal, solution to the urgent building needs of that time. This was evident in many of the buildings completed then,  particularly the slab blocks of HDB fl ats, where functionality prevailed in a bid to eradicate slumps. Some, however, managed to transcend the superfi ciality of stylistic borrowing, and thus remained as inspiring icons to this day (for example, Peoples Park Complex, Golden Mile Complex and Pearl Bank Apartments).

Despite the economic challenges, the 1980s and the 1990s were an exciting era dominated by the mushrooming of commercial complexes, some taking on the concept of a self-suffi cient city-withina-city providing one-stop experiences. This eventually went beyond its concentration at the Orchard/Marina shopping belt to developments insuburban areas. To enhance connectivity, construction of the Mass Rapid Transport (MRT) system was commenced to complement the consistently improving public transport systems. Changi Airport’s Terminal I and II enhanced the physical interface with the world at large. Effi ciency and productivity were the keywords.

Then, there were concerns about roots/identities and buildings of historical/cultural signifi cance were taken notice of. Guidelines were drafted to ensure conservation of worthy buildings. Rising skyscrapers at the fi nancial district began tracing the Singapore skyline along Marina Bay. To bridge the learning curve, local practices partnered with foreign companies in larger architectural commissions, resulting in what some labelled soul-less architecture that can be transplanted anywhere. Construction opportunities were plenty, as such architectural discourses became active.

At the core of these discourses, identity was a dominant issue. Many argued for a return to vernacular origins in search of a tropical architectural language, culminating in heated public discussions centred around the appropriateness of the winning design for The Esplanade. Voices proposing green architecture surfaced and ideas to craft Singapore into a hub for almost everything were mooted. Some of the signifi cant developments include Marina Square, Suntec City, Millenia Walk, Singapore Post Centre, Singapore Expo and so on. From there, the Urban Redevelopment Authority’s (URA) 1998 Master Plan came to fruition.

The 2000s present a very different set of conditions for Singapore’s architecture and the world at large, especially since the ominous September 11. For major developments as well as public institutional buildings, anti-terrorism measures become a necessary consideration. On the other hand, issues of global warming have garnered enough momentum to warrant government initiatives in promoting ‘Green Mark’ for buildings. Being environmentally friendly has caught on, aided with new technologies and innovative materials. URA’s introduction of the Parks And Waterbodies Plan, and Identity Plan, is a timely reinforcement of the green movement. Even visitors arriving at the new Changi Airport Terminal III will be welcomed with lush greeneries within the building.

Besides, developments take on unprecedented scales, in terms of programmatic typology, physical size, monetary investment as well as media exposure in an attempt to secure Singapore’s relevance in the globalised context. These include Biopolis, Marina Bay Sands, Resorts World at Sentosa, Singapore Sports Hub and the Formula 1 Night Race. Interestingly, some of these major developments uncover an often oblivious, though nonetheless integral, aspect of Singapore’s architecture – the incorporation of Feng Shui (a traditional Chinese strategy in architectural making, with emphasis on improving well-being rather than aesthetics). More local architectural talents gained international recognition, while they were being readily rewarded at home with larger commissions, thereby further sealing the Singapore brand. URA’s 2008 Master Plan was gazetted to guide Singapore into the future.

If the 1960s and 70s were to be regarded as allowing the skeleton of Singapore’s architecture to form, the 80s and 90s saw its body materialising. Now that Singapore has already taken shape, its course in history on track, building will be geared towards achieving quality rather than quantity. The 2000s and beyond will breathe soul into this being.

Shang Zong Wei runs his own professional practices, Shang Architects and Shang Astrology. He also conducts Feng Shui classes at the Institute Of Feng Shui Ba Zi . For more information, log on to www.i-fsbazi.com and www.shangarchitects.com or email: zw.shang@gmail.com.

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The Migrant Workers’ Fuse is Lit

February 27, 2009 at 6:12 pm (Getting By)

Recession is here. Business is slowing down and projects have stalled. While the foreign talent can pack and go, the bottom of the foreign workforce pyramid, the foreign worker doing menial tasks, is stuck here with no work.

They are protesting peacefully outside MOM recently. But as their frustration grows, would they become more desperate in their protests? The authorities would seize the chance to deport them once they show signs of unruliness and disturbance to law and order. Singaporeans as a whole would applaud as an angry jobless desperate foreign worker community would only mean more chances of crime, all things equal. It is stalemate for now, but as the protests increase in size and frequency, and the recession makes these workers more agitated, the situation is going to blow.

Transient Workers Count Too is trying to defuse the situation, but what can they really do besides mediating? If the government takes action on the companies not giving these workers work, it would mean more pressure on the companies that are struggling to make ends meet. How can they meet the needs of the foreign transient workers when their own survival and the livelihood of the local permanent staff is at stake? If these  companies are taken to court, how would that help these stranded foreign workers get jobs? There are not enough jobs to go around  now and all are victims of the recession. And I’m sure we don’t want to hand out GST credits to these foreign workers.

Jobless migrant workers protest in Singapore again

SINGAPORE (Reuters) – A group of around 100 Bangladeshi migrant workers gathered outside Singapore’s labour ministry on Friday, urging the government to give them work and retrieve overdue pay after they were laid off by shipping firms.

Protests are rare in Singapore, where public speeches and demonstrations are banned unless they are approved by the government, or take place at a designated place called Speaker’s Corner.

A representative for the Bangladeshi workers said they were promised a monthly salary of at least S$400 and a work permit of 2 years. But with no work or pay for 4 months, they felt they were in danger of being deported.

“We don’t want to go back to Bangladesh. We take loan, we cannot pay, we die,” said Rahman, who gave up his farming job in Bangladesh and took a loan of S$7000 from money lenders back home to pay an agent fee to work in Singapore.

Fifty workers gathered at the ministry earlier this month.

Local advocacy group Transient Workers Count Too said such gatherings would become more common in Singapore as workers were not being fed enough and were just sitting in dormitories, amid Singapore’s worst ever recession.

“The mood is that we are seeing a lot of people coming forward — hundreds — they don’t have work,” said the group’s Shelley Thio. “We are going to see a lot more of it — they are being shortchanged.”

Singapore’s shipyard, construction and manufacturing industries were once red hot, hiring almost 800,000 migrants in 2007. But as the economy slid into recession last year, demand for labour dived and major projects were cancelled or delayed.

“If developers can’t get money to pay construction companies, subcontractors down the line will get affected too,” said Chew Chin Hui, who heads a local building firm.

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High Inflation still, an Unmerry Christmas

December 23, 2008 at 7:39 pm (Getting By)

Adding to the Christmas gloom, inflation rate has dropped to 5.5% but is still almost twice the normal inflation rate during the good years. Inflation and price of oil has decreased but not public transport costs though. Those who invested are sitting on paper losses, those 10,500 who bought property on the DPS are at risk, unemployment expected to grow from the standard 2.2% as people get laid off festive season or not, ho ho ho Black Christmas all. Next month instead of February, we just might get a real Hong Bao Budget if the government wants to be in our good books.

Singapore November inflation falls to 5.5 percent

5 hours ago

SINGAPORE (AP) — Singapore’s inflation rate fell to an 11-month low in November as plunging oil prices lowered gasoline costs, according to data released Tuesday by the country’s statistics department.

The consumer price index in November gained 5.5 percent from the same month last year, following a 6.4 percent year-on-year increase in October. Inflation has slowed from a 26-year high in June of 7.5 percent.

Transport and Communication costs — which include gasoline — fell 1.9 percent in November from a year earlier. Prices of food, which account for 23 percent of the index, rose 6.9 percent while housing prices, which make up 21 percent of the index, gained 15.7 percent.

Oil futures fell to nearly a five-year low last week, down about 75 percent from five months earlier.

Compared with the previous month, the consumer price index fell 0.2 percentage points in November.

The government expects the inflation rate to fall next year to between 1 percent and 2 percent as economic growth slows. The economy slipped into recession in the third quarter as a fall in external demand battered the city-state’s exports.

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Poker Faces in the Marina Gamble

November 12, 2008 at 7:31 pm (Getting By) (, , )

So is Capitaland, which is 40% owned by Temasek Holdings, eyeing Las Vegas Sands‘ casino project in Singapore? The local property giant had initially teamed with MGM Mirage in 2005 in a bid which Sands won. Looks like the tables might be turned if the CIMB-GK Research crystal ball gazing turns out to be accurate. However, Capitaland then threw the market into further uncertainly when they denied any hostile interest in Sands. Today, the government clarified that they won’t bail out Sands if the casino giant fails to raise US$2 billion. But then again, Temasek is officially a private company.

What this means for the 10,000 hoping to be employed in the Marina gambling and entertainment centre, until the casino is up, they can’t start working there.  LV Sands priced dropped to an astonishing $5 range from about $122 in December last year. But it is doubtful that LV Sands would collapse as there are many hungry wolves at its door eager to lend money as bail out.

Singapore government will not bail out Las Vegas Sands
By Nicholas Fang, Channel NewAsia | Posted: 12 November 2008 1322 hrs

SINGAPORE: The Singapore government said Wednesday it will not bail out the troubled US gaming firm Las Vegas Sands should it fail to fund the Marina Bay Sands integrated resort.

Senior Minister of State for Trade and Industry S Iswaran said there has been no request from Sands for a bail out so far.

Sands has been working to avoid defaulting on bank covenants and announced on Tuesday that it was raising some US$2 billion in capital.

There have been concerns about whether Sands has the financial ability to finish the resort at Marina Bay, after it ran into financial difficulties.

Mr Iswaran, who was speaking on the sidelines of an industry conference, said the government and Sands have a development agreement which specifies clear rights for both parties.

He revealed that Sands had asked the Singapore Tourism Board to adjust the timelime for the construction of the Marina Bay Sands resort.

The government is reviewing the request to see if it will conflict with its own plans for an integrated resort to be built by 2009.

Mr Iswaran added there is no reason to think that a large proportion of planned jobs for the project will be lost, although they may be put on hold.

While the government would not participate in any bailout of Sands, there is speculation that government-linked companies may be interested.

Mr Iswaran said government-linked companies are commercial enterprises and have to make their own decisions on whether an investment makes business sense. He added that it is not for the government to tell them what to do.

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Oops No Compensation Now

October 30, 2008 at 6:03 pm (Getting By)

With a wave of the hand, compensation is no more perhaps? MAS looked good as it made DBS do something about supposed mis-selling. DBS nodded its head but soon after, shrugged its shoulders and said that the Minibonds are worth less than toilet paper.

Sounds like a great opportunity to have a toilet roll protest at Speakers’ Corner. Just buy lots of house brand toilet paper, or the those that you buy from the SAF emart, and line it ala anti-Odex protest the other time. The great toilet paper fall in to symbolise the great DBS disappointing Minibond fallout. One could dump the toilet paper on Sunday at a specific DBS branch as protest so that on Monday, staff reporting for work would face a mountain of toilet paper, but  the culprits face the risk of being fined for littering.

Singapore DBS says Lehman-linked notes worthless

SINGAPORE (AP) — Singapore’s DBS Group said 103 million Singapore dollars ($68 million) of structured notes linked to bankrupt U.S. brokerage Lehman Brothers Holdings are now worthless.

That’s about a quarter of the amount of Lehman-linked securities sold to clients in Singapore and Hong Kong.

The notes, known as High Notes 5, were linked to the risk of a bankruptcy occurring to one of the reference entities, such as Lehman, DBS said in a letter to 1,004 investors posted on its Web site Tuesday. DBS said it valued the notes by calculating, “among other factors, the price of the reference obligation of the reference entity.”

The letter did not specify what the reference obligation was.

DBS said last week that 4,700 clients in Singapore and Hong Kong bought SG$360 million ($239 million) in Lehman-linked structured notes from the bank.

In Hong Kong, the total outstanding amount of the Lehman-linked products sold by all banks is 20.2 billion Hong Kong dollars ($2.6 billion) while Singapore investors bought around $400 million.

DBS said last week it would pay up to SG$80 million ($53 million) in compensation to investors who received poor service, but Tuesday’s letter did say anything about this. Singaporean investors, including retirees, have said bank officials did not properly explain the nature of the notes.

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