In view of the continued deterioration in
the outlook for external and regional demand, MTI has moderated the GDP
growth forecast for 2008 further downwards to around 2.5%.
The economic downturn is expected to
last for several quarters, well into 2009...
The total issue size of the Pinnacle Notes
Series 9 and 10 was S$26 million, sold to about 700 retail investors
through five distributors: DMG & Partners Securities, Hong Leong
Finance, Kim Eng Securities, OCBC Securities and UOB Kay Hian.
Investors who consider they have a genuine
claim that they were mis-sold the product or that the product was
misrepresented to them should lodge their complaints with the financial
institutions (FIs) that sold them the products.
To provide noteholders with an
independent opinion on the options that best serve their interests,
MAS has appointed Deloitte & Touche Corporate Finance Pte Ltd (DTCF)
as an independent financial adviser on the Lehman Minibond notes
programme...
MAS understands that noteholders are
anxious to know what they should do and what to expect next. At the
moment, there is no action required on their part. MAS and the
trustee will continue to keep noteholders updated on all
developments including any options for them to
consider...
On 10 Nov 08 at about 3.30pm, Security
Officer Lance Corporal (LCP) Rosli Bin Mohd Sa’ad was on duty at a bank
at a shopping centre along Geylang Rd when he spotted a Malay man
behaving suspiciously in the banking hall.
Sensing that something was amiss, LCP Rosli
decided to conduct a check on the subject. When confronted, the subject
became agitated and a scuffle ensued that attracted the attention of
some of the bank staff, who came forward to assist in subduing the Malay
man.
This downturn is just beginning. No one can
say how long it will last and how deep the downturn will be. Recovery
will come when the property market in America reaches bottom and begins
to rise. That may not be for many months or even years.
Fortunately, in Singapore, having
learned from the 1997/98 financial crisis, we have not allowed a
speculative rise in residential property prices. Few citizens have
bought homes that they cannot afford to service their instalments on
their mortgages. High price condominiums and office properties have
declined in prices...
The trading of OTC commodity derivatives has
also flourished over the years. Last year, total trading volume amounted
to approximately US$600 billion, accounting for almost 8% of global
trades.
Singapore is also home to the largest REIT
market in Asia ex-Japan with a total market capitalization in the region
of USD$20 billion.
The Merrill Lynch report also noted an
interesting investment trend for HNWIs in Singapore. On the average,
alternative investments (including structured products) account for
almost 10% of total portfolio allocation for 2006...
MTI forecasts the Singapore economy to grow
by 4.5-6.5 per cent in 2008. This represents a moderation in growth
towards the economy's underlying potential rate, following four years of
above-trend growth.
The market consensus is that the US
economy will slow down in the first half of 2008 as a result of
weaker credit and housing markets before resuming healthy growth
in the second half. This would support GDP growth in Singapore in
the upper half of the 4.5-6.5 per cent forecast range...
Nonetheless, financial markets have
rebounded recently and underlying economic conditions remain
supportive. GDP growth is therefore on track to come in at the
upper end of the 7-8% forecast range this year, up from the
4.5-6.5% forecast during the April review...
In the Singapore economy, growth will
be led by non-IT manufacturing, construction and business
services, which have built up a strong momentum and are more
dependent on regional and domestic sources of demand as well as
developments in specific product markets.
At this stage, our assessment is that
the Singapore economy is likely to expand at a slower rate in 2008
than in the recent past, reflecting weaker global economic growth.
Singapore’s GDP growth rate is expected to come in within its
potential of 4-6% next year...
The Monetary Authority of Singapore (MAS)
has issued a consultation paper proposing to exempt card issuers from
complying with the maximum credit limit when issuing credit or charge
cards to individuals with an annual income of at least $120,000 or net
personal assets exceeding $2 million[1].
With the proposed exemption, card issuers
may determine the appropriate credit limits for this higher income group
in line with their assessment of the credit worthiness of these
individuals...
According to the latest survey by the Bank
for International Settlements (BIS), average daily foreign exchange (FX)
turnover volume in Singapore jumped 84% from the previous survey in
2004, to reach US$231 billion in 2007.
The survey ranks Singapore as the
fifth largest FX centre in the world and the second largest in
Asia, closely behind Tokyo...
The survey also ranks Singapore as eighth
largest centre globally in terms of over-the-counter (OTC) derivatives
trading, up from twelfth position in 2004...
DBS Group Holdings said today that Jackson
Tai will step down as Vice-Chairman and Chief Executive Officer (CEO) to
be with his family in the United States, and his last day at the bank
will be towards the end of this year...
DBS has initiated an extensive global search
for the new CEO. In the interim, with the endorsement of the Boards, Koh
Boon Hwee, Chairman of DBS Group Holdings and DBS Bank, will with
immediate effect take on an active management oversight role. He will
oversee the Corporate Office to ensure continued strong leadership and a
smooth transition over the next few months...
"First, let me clarify that the minimum
annual income requirement to qualify for a credit card has not been
relaxed, and remains at $30,000.
"There are no plans to change this. When Mr
Palmer mentioned the relaxation in the minimum annual income for credit
cards, I presume he was referring directly to payment instruments with a
maximum credit limit of $500.
"MAS has exempted payment instruments with a
credit limit of less than $500 from MAS' rules to provide some leeway to
the market to innovate and develop convenient payment instruments..."
"These guidelines provide customers with
clear disclosures on the use of home loan board rates, the financial
indicator(s) against which these rates are benchmarked, and the basis
for the change in the rates over time...
"The new guidelines are applicable to
loans taking effect from 15 June 2007 and not to loans committed
before that..."
Ms. Tay Bee Bee,
Director Monetary Authority of Singapore
"Over the last 3 years, Singapore managers
originated more investment CDOs than any other country in Asia ex-Japan,
with an estimated S$6 billion of CDOs in 2006...
"In Asia, Singapore has been pro-active in
providing clarity and certainty on the treatment of CDOs into our
regulatory regime. Banks have been allowed to invest in all tranches of
CDOs, while insurance companies have been permitted to invest in the
equity tranches of CDOs since January 2006..."
“ 'The Campus will be a centre of excellence
for development programmes targeted at employees and clients in the Asia
Pacific region. More importantly, it will also serve as a hothouse for
wealth management research and thought leadership in new wealth
management initiatives,' said Kathryn SHIH, Head of UBS Wealth
Management in Asia Pacific...
"Equipped with state-of-the art
facilities, including a lecture hall with video conference
facilities and voice activated cameras, five seminar rooms, a
media lab for business technology training, networking and
administrative areas, UBS expects to train approximately 5,000
existing and future UBS Wealth Management staff by 2010..."
"Seventeen Chinese men aged between 17 to 38
years old believed to be members of an unlicensed moneylending (UML)
syndicate were arrested in an island-wide operation conducted on 12
April 07. More than $130,000 in cash was seized...
"Fifteen premises in Woodlands, Sengkang, Ang
Mo Kio, Toa Payoh, Hougang, Yishun, Sembawang, Serangoon and Changi were
raided during the operation, which lasted from 8pm on 12 April 07 to 1am
on 13 April 07..."
Mr Ng
Nam Sin, Executive Director, Monetary Authority of
Singapore
"We have reviewed our policies to
ensure that Islamic finance is not disadvantaged vis-ŕ-vis
conventional finance...
"Regulatory wise, we have worked
proactively with Financial Institutions in allowing Islamic
Finance transaction under existing regulation...
"All these put together, along with
Singapore's open markets, efficient infrastructure and transparent
regulations allow Singapore to further develop itself as an
international financial centre offering Islamic Finance
possibilities..."
"A measured step of lowering the minimum
annual income threshold for unsecured credit facilities from $30,000 to
$20,000. A more conservative maximum credit limit of twice the
borrower's monthly income will be set for individuals in this $20,000 to
$30,000 income group, with no access to credit cards...
"Create appropriate modifications to
the moneylenders regime. For instance, for unsecured loans of
$3,000 and below, no minimum income requirement would be imposed
but such loans would be subject to an interest rate cap..."
"Entities
that have not been approved to issue credit cards in
Singapore will be prohibited from soliciting for or
accepting card applications in Singapore, and this
applies equally to third parties acting on their
behalf...
"The
proposed regime also clarifies that single party
merchant credit is exempted from regulation.
Such an arrangement, where the card is used only for
transactions with the issuer, is essentially a
deferred payment scheme offered by merchants to their
customers.
"In
addition, a new exemption for cards granting credit in
small amounts not exceeding S$500 will be introduced.
This allows flexibility in payments for small-ticket
items without raising substantial concerns about
Singaporeans spending beyond their means..."
Mr Ong
Chong Tee, Deputy Managing Director, Monetary
Authority of Singapore
"In
Singapore, we have seen a steady increase in the
number of hedge fund managers - from a handful 5 years
ago to over a 100 now.
"It is not
only small boutique firms but many large well-known
hedge funds have also set up operations in Singapore,
drawn by a pro-innovation and competitive business
environment, high regulatory standards and trusted
legal regime, and the available talent pool..."
"The Bill introduces a requirement for
foreign full and wholesale bank branches to maintain a minimum
level of eligible assets in Singapore in proportion to their
liabilities...
"Such a requirement would help to
improve the recovery of assets from a failed foreign bank branch
in Singapore to meet the claims of Singapore depositors..."
Mr Heng
Swee Keat Managing Director of the Monetary Authority of Singapore
"Most Asian markets are still dominated
by local investors, comprising mostly banks, insurance companies
and pension funds. Anecdotal evidence suggests that on average,
non-resident investors hold less than 5% of Asian bonds...
"After the financial crisis, most Asian
economies lifted restrictions on foreign participation in their
bond markets...
"But I believe we need to go much
further - beyond removing barriers to foreign participation, we
should be actively facilitating foreign participation, and
integrating our markets into the global system..."
Lee Chuan Teck,
Executive Director, Monetary Authority of Singapore
"On the other hand, Asian property developers
who need to raise funds efficiently issue a REIT in Singapore because
there is a ready pool of investors there. In this way, Singapore became
the conduit for funneling global investments to Asian property
developments.
"The same can be done for infrastructure.
Singapore is a leading project finance hub in Asia. Leading banks such
as Standard Chartered, Bank of Tokyo-Mitsubishi, Sumitomo Mitsui, Mizuho
and BNP Paribas having sizeable on-shore project finance teams to access
regional opportunities..."
"The SII anticipates offering its front and
back office qualifications in Singapore, otherwise known as the
Certificate and IAQ suite. It has appointed Mona Poomy as its VP based
in Singapore.
"SII
examinations are approved by the Monetary Authority of Singapore (MAS)
and there are a large number of international banks with offices in
Singapore who are keen that their workforce are trained to the same
standard of competence as those in the UK..."
"To lower the minimum income threshold
for unsecured credit facilities to $20,000 from $30,000. The minimum
income requirement for credit cards remains at $30,000.
"To set the maximum aggregate credit
limit of all unsecured personal credit facilities and credit cards
granted by a financial institution at four times monthly income for
individuals with at least $30,000 in annual income. For individuals
with annual income of at least $20,000 and below $30,000, the maximum
aggregate credit limit will be twice their monthly income..."
Mr Heng
Swee Keat, Managing Director, Monetary Authority of
Singapore
"The Singapore economy grew by a robust 6.4%
last year...
"Barring any unexpected shocks in the
external environment including an escalation in geopolitical risks in
the second half of this year, GDP growth for the year as a whole is
likely to be in the range of 5 to 7%..."
"MAS will set aside a budget of S$30 million
from the FSDF over the next 5 years. It expects to award some 150 FSP
scholarships over the next 5 years..."
Mr Ong
Chong Tee, Deputy Managing Director, Monetary
Authority of Singapore
"...First, real estate investment trusts or
REITs. These have seen explosive growth, particularly in Singapore and
Hong Kong over the last 3 years...
"In Singapore, the market capitalization
weighted-average returns since IPO have been exceptional at over 30%.
The market has also moved beyond traditional REITs to other products
like shipping trusts and hotels...
"Singapore is also a fertile ground for
CMBS development due to its stable economic environment (sovereign
credit rating AAA/Stable/A-1+) and robust legal and land title
system which have enabled structured finance issuers to raise
highly rated debt...."
"Rising wealth in Asia, and the focus
on Asian growth prospects have seen total assets under management
in Singapore's fund management industry grow from about S$280
billion in 2000 to much more than S$600 billion now.
"Growth in private banking assets under
management has also been strong, with anecdotal feedback suggesting
Singapore private banking AUM averaging 20% per annum over the past
few years to about US$200 billion currently...
"Our reputation for high standards of
regulation and supervision and a robust legal and judicial
framework, is trusted by financial intermediaries and clients alike
to conduct wealth management activities..."
"From 1 April, the deposit insurance scheme
will compensate individuals and charities for the first $20,000 of their
Singapore dollar deposits in standard savings, current and fixed deposit
accounts, net of liabilities, in the event that their bank or finance
company fails..."
"Presently,... a nomination by a
policyholder of his spouse and/or children will
automatically create a statutory trust in favour of the spouse and/or children governed by section 73 of the
Conveyancing and Law of Property Act (CLPA).
"The creation of a statutory trust
effectively causes the policyholder to lose all rights to and control
over the policy. This means that without the consent of all the
beneficiaries, he cannot make any change to his nomination or the terms
of the policy.
"...MAS proposes to amend the Insurance Act
to bring under its purview the nomination of
beneficiaries in respect of the proceeds of insurance
policies..."
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