Sunday, November 05, 2006

MM Lee explains Shin Corp deal!

"Yes Singapore has an inclusive society,
just that some people are more included than others...." - Lucky Tan.
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Finally, we someone with enough curiosity to ask MM Lee about Shin Corp. Singaporeans have generally lost their curiosity about such matters after many years of conditioning in our education system and reading the Straits Times, a number of Opposition troublemakers (CSJ + company) are facing serious criminal charges for speaking in public.........and the Straits Times reporters have more important things to write about such as explaining the concept of an inclusive society. With no one among Singapore's 4 million citizens to ask questions surrounding the potential loss of $1+ billion in Shin Corp, it was left to an American exchange student called Jonathan Fox to do it. Thank you Jonathan Fox for asking MM Lee about Shin Corp on our behalf.....we are too busy thinking about which LCD TV to buy for our living rooms to concern ourselves with such issues....also some of us don't like knocks on our door at midnight asking us to go for interviews at ISD to explain why our curiosity is not inspired by some weird dangerous ideology.
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MM Lee's reply to Jonathan Fox is so brilliant that I have to reproduce it here for you to appreciate. It is clear from the reply that his fabled databank is still very much intact.
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"To the outside world curious to know the inner workings of Temasek or GIC, it is unnecessary secrecy. But we have reasons for that. Some we are prepared to disclose others we are not".
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Ooi Jonathan Fox please don't try to find out about our GIC investment secrets for returning 5.3% a year after inflation. It is for the privileged few in our inclusive society to know about it. I'm sure as an American, you yearn for such a spectacular performance for your money but the GIC works for the interest of Singaporeans. I can see your envy of not having the GIC manage your money for a 5.3% inflation adjusted return, I suggest you do the next best thing of putting your money with this old American investor call Buffett. ...although he fund is essentially a 4 man operation and is no match for the hundreds of best elite scholar minds our GIC hire, as an American you don't have much of a choice.
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"This system exists on the basis of integrity. Starting from the top right through, there are checks and balances - not from the media but part of the system". The Shin Corp investment involved a vast sum of money but the deal was "completely above board".
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Oh Jonathan, don't you know the Singapore govt only makes honest mistakes because it has the highest level of integrity? Yes, they honestly lost money in Micropolis and Shin Corp....and Singaporeans are perfectly comfortable with it because proper procedure has been applied. The PAP is the only govt in the world with the ability of checking and balancing itself without strong opposition and an independent investigative media. Of course some of you cynics might argue that it is impossible for a cookie cutter system that produce the same mindset in our upper echelons to produce any kind of balance. I'm sure this false impression is created because our top civil servants & ministers seem to speak the same way and answer our questions in the same manner. You see they all use the same govt template and script writers although they are actually independent in their thinking...get it?
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"It can withstand any investigation. Nobody doubts that, nobody within the system doubts that. The people who man the system are all absolutely above board...."
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I'm sure every approval form was signed and there are no spelling errors. We can all take comfort in the fact that all proper procedures have been faithfully followed by Temasek Holdings in its purchase of Shin Corp. There is no need to compile lessons learned because this deal is professionally conducted and not predicated on who is the leader of Thailand. If you look at it as a long term investment that has the potential of making us a great fortune from the Thai middle class sometime in the future, the present loss in value is just a small $1+ billion blip that we can live with. Anyway, as Singaporeans did our lives become twice as good when Temasek Holdings assets rose from $50B to $100B? ....that is why Singaporeans don't really bother much whether Temasek has $10B or $200B, it has nothing much to do with ordinary Singaporeans who can't get jobs at Temasek Holdings anyway.
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Singaporeans are lucky to have a govt that maintains such a huge reserve and massive assets. In other countries, the people would have put a stop to it and ask that it be returned to the people as fee reductions and financial aid for the poor. This massive reserves are build on the hard work of ordinary Singaporeans who take an average of 20 years to settle their mortgages for public housing and ensure that GLC monopolies such as utility companies, telcos and transport are kept profitable by fees increases. The reserves are indeed important ......very important, if ever an event or economic crisis threaten the stability of the PAP govt, they can use the reserves to overcome the problems and stay in power forever. See how lucky ordinary Singaporeans are? The huge reserves they help to build up will ensure that their beloved govt stay in power for a long time.

18 comments:

Anonymous said...

Nobody question the system
coz Everybody thought
Somebody will do the checking and
Anybody will assume nothing will goes wrong!

Afterall, our system is run by elites.

Anonymous said...

yes elites good. we happily sg safe got jobs. but what jobs how pay? pay so wide how can? many sgreens worry no money retire must work like cows to 80s. how can like that?
but they say must spend smart. so wait all spend smart who buy goods business fail how? business fail more job loss again no jobs how?
so idea of elites stupid only good for themself. from i see, they pretend care they like destroy and build again.
yes, make country beautiful but really for who? every beautiful thing made many money go to elites.jobs create pay also not enough retire or raise family or live costly for many people. how can like that?
elites rule look good outside. but inside, waiting timebomb explode!
no conscience!

Anonymous said...

If you argue from their perspective, it can be made to sound legitimate.

All you can say perhaps is that it is legitimately foolish.

Question is, when will we wake up one day and realized we have paid good money for peanuts?

And it's not the deal.

Anonymous said...

The "system" he says... but can someone tell me what he means by everyone in the system, and what system are we talking about?

Anonymous said...

a post worthy of 5 stars upon 5. =)

Anonymous said...

There are many ways to hold the people hostage and remain in power. Ballooning reserve is one of it. you see, whoever controls the money, control your lives. And thus the less subtle form of control over lives is jobs. That's right. We need jobs to get money for survival. If you can generate jobs or regulate job assignment, you are position to play god. With such power, you can decide or dictate who lives or who dies in such a city. Since the fear of death is such a natural instinct in man, the hostage holder wield tremendous power over souls. So in such a city, community life becomes secondary to jobs. People are made to work in order to live. Without work or underpaid work, you are on a one way track to death( pun intended). And often, a poor man's life is slave to jobs till the day he/she dies - which we are seeing it happening.

However, the better way is, one must be freed to live. When you live, you produce work that enables you to live even more. You are not held hostage because such works lead to enhancing community life. Well, I can go on but let the 'clever people' go figure it out the great difference.

We just sit back and watch the movie with occasional commentaries of course.hehe.I believe, the movie is title: ' Blown Away'.lol.

Anonymous said...

There are many ways to hold the people hostage and remain in power. Ballooning reserve is one of it. you see, whoever controls the money, control your lives. And thus the less subtle form of control over lives is jobs. That's right. We need jobs to get money for survival. If you can generate jobs or regulate job assignment, you are position to play god. With such power, you can decide or dictate who lives or who dies in such a city. Since the fear of death is such a natural instinct in man, the hostage holder wield tremendous power over souls. So in such a city, community life becomes secondary to jobs. People are made to work in order to live. Without work or underpaid work, you are on a one way track to death( pun intended). And often, a poor man's life is slave to jobs till the day he/she dies - which we are seeing it happening.

However, the better way is, one must be freed to live. When you live, you produce work that enables you to live even more. You are not held hostage because such works lead to enhancing community life. Well, I can go on but let the 'clever people' go figure it out the great difference.

We just sit back and watch the movie with occasional commentaries of course.hehe.I believe, the movie is title: ' Blown Away'.lol.

Anonymous said...

Remember, remember the fifth of November..

Whispers from the heart said...

Old man is running thin on his reputation ...

Sad to think that these elites still believe they can get away with their solid or money back reputation!

I think most of us don't really bother anymore because we are busy planning our escape route.

Anonymous said...

the solution to solve the wide income gap, so said the longest serving leader, is for the able or rich to help the poorer or disadvantaged.

err...sounds great..how about starting with million dollar ministers or MPs to inclusively bless these poor fellas with their wealth...GENEROUSLY please huh?

if not...its all talk man.

and we are ...WATCHING you too!lol

lead by example...leaders lead by example!...aaaaahh..

Anonymous said...

Damn! Is the average Singaporean's mortgage period 20 years? Sh*t!! I'm above national average - mine's 30years! Somemore, the loan's with our beloved HDB, which is reputed to give the most competitive interest rate (for the govt)...

That's it, I'm migrating!!

Anonymous said...

ST today:youth and grads in bo2,develping/non-d countries are unlucky with jobs/pay.implied:we shld b grateful even for relative low wages and lowly jobs.

however,the flip side, implied: grads here may end up like their counterparts as the educated workforce exponentiate and compete globally and jobs created may not rise in tandem.

since core ideology remains unchanged, we are more likely to see another round of jobs wiped out and with stakes raised much higher, the pain inflicted will thus b far greater and destruction more devastating?

i seriously dont see their brilliance.

maybe thats the reason why i live by 2 cents and not millions.

freemason said...

kinda post responses...

- Currency inflation is very high= cost of living is very high.

- The best way to hold hostage is by Feer. Feer for yr livelihood.

- The elites ARE getting away with the money. my football they are worth it... my granny can do just as well.

- Yup 1 million a yr's wages can pay 400 unemployed workers a year's wages.

- since they are getting away with the money, better get out too while we still can...

Anonymous said...

Since S'poreans cannot judge PAP, now a foreign govt, Thailand, is doing it although ultimately at Singaporeans' expense.

You see karma always catches up with you no matter how clever you are.

Before Thaksin falls, PAP did'nt care a hoot what Thailand says about the Shin Corp buyout.

PAP said "Oh, Temasek is run purely as a commercial entity" and so the S'pore govt had no say on what it was doing. It thought the Thais were stupid and harmless people.

Now Thailand is teaching PAP a very painful lesson & PAP has to keep assuring the Thai PM that S'pore-Thailand relationship is so chummy. Come on, stop that hypocrisy. It's too late.

The Thai PM replied that its office would not interfere in the issue - exactly like what PAP said about its stand on the Shin Corp buyout by Temasek. Does the PAP think that only it knows how to talk clever? (In fact PAP is actually quite stupid when dealing with other countries but for the propaganda that it has spread around.)

But alas the fine over the Temasek-controlled iTV already comes to S$3.9 billion (9 Nov 2006). If this is not pure vengence what is????????

Anyway, Temasek still knows how to make up for the losses by raising up extraneous projects like EZlink, TV Mobile and nearly the nationwide fibre optics for broadband projects for the government to purchase using taxpayers money.

These projects run into hundred of millions to multi billions dollars.

In that way they can at least show that they are making a profit of a mere 3% annually as it is currently doing - way below industry standard.

Poor powerless Singaporeans are the victims of all these, made to struggle and pay the super salaries of politicians and Temasek's top executives who are anything but competent as Shin Corp saga clearly shows.

A total loss of S$6 billion has already been incurred: drastic dip in Shin Corp share price (~S$1.3 b), S$800 due to having to sell off up to 46% of the share, S$3.9 fine on iTV.

These excluding the further fine the Thai court will surely further impose over the case. This is likely to come to S$3 to S$4 billion.

freemason said...

re above post:-
$6 billion loss ?????!!! I dont even have $600 !!! dam them to heil ! dam them ! dam them !!!!
"..and their number was 66.6.."

Anonymous said...

The S'pore government makes up to 700% proft from treated water.

This is based on the Ministry of Foreign Affairs site http://www.mfa.gov.sg/internet/press/pedra/faq.html. It says:

"The arithmetic is quite simple. For every 1000 gallons (4.55 cubic metres) of water:
Singapore pays 3 sen (~S$0.01) for the raw water from Malaysia
Singapore pays RM2.40 (~S$1.05) to treat this water"

In other words after treating the water the cost is only S$0.23 per cubic metre.

Now the selling price for water in Singapore is currently S$1.17 per cubic metre. This means SP Services is making a profit of about S$0.94 or a sheer 400% profit !

For Water Conservation Tax and Water Borne Fee you can add another 300%. Your SP Services bill says it all.

Therefore 400% + 300% = 700%.

And this not even taking into account GST and Sanitary Appliance Fee.

And yet MFA is accusing Malaysia of making much money by buying back treated water from Singapore.

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This is how PAP keeps its fat cat machine well fed and on the roll all the time.

disfrutar del sexo said...

Thank you for this article, pretty helpful information.

www.madrid-3d.com said...

This can't work in reality, that is exactly what I suppose.