Prospects for Singapore's financial sector brighten :SM Goh
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Prospects for Singapore's financial sector brighten, says SM Goh
SINGAPORE : Senior Minister Goh Chong Tong has expressed guarded optimism about the future of Singapore's financial sector.
Speaking at the 36th annual dinner of the Association of Banks on Friday, he noted that economic and financial indicators have started stabilising in recent months. But the senior minister also noted that downside risks remained.
Giving updated numbers, he also revealed that 3,600 investors who bought Lehman mini-bonds have been offered settlements, totalling more than S$100 million.
Shortly after the Lehman Brothers debacle in September last year, the global financial sector went into a tailspin.
Still, while Singapore's financial institutions weathered the crisis well, a significant number of Singaporeans suffered losses from having bought structured products related to Lehman. And many who had invested much of their life savings in the mini-bonds found that they were worthless.
Mr Goh said that as at end-May, more than 3,600 investors have been offered settlement worth a total of S$105 million on a no-admission-of-liability-basis. That is about two-thirds of all cases that had been decided - including 25 per cent who received full compensation.
More details are expected soon when the Monetary Authority of Singapore (MAS) releases the findings of its completed investigations. Broadly speaking though, Mr Goh, who is also Chairman of MAS, said financial institutions will need changes to both their business models as well as mindsets to win back the trust and confidence of consumers.
Mr Goh said: "We must not waste the current crisis. Whether as financial institutions, regulators or as consumers, this downturn has not only taught us new lessons, but also presented opportunities for the nimble and prepared."
Going forward though, Mr Goh said the sector needed to build on its talent pool and tap on the opportunities arising from the massive infrastructure needs and growing wealth in Asia.
He also said that Asian banks have emerged stronger. The financial sector has developed further in the past years, and while risks remain, the opportunities are certainly there.
Mr Goh said: "Rapid urbanisation will bring about more infrastructure projects, which can spur the growth of project financing in Asia. Demographic trends in Asia are expected to drive the demand for greater wealth planning, including asset management, as well as life and healthcare insurance products."Also, growing trade within Asia and with the rest of the world will drive financing opportunities."
Meanwhile, as investors shift towards demanding less complex and more transparent investment instruments, authorities are working to improve access to Singapore Government Securities (SGS), generally considered a liquid and safe investment alternative.
From next month, individuals can submit bids for these securities through ATMs. Eventually, such SGS could be listed on the Singapore Exchange to be traded, just like other stocks.
Mr Goh said: "By making SGS more accessible and more liquid, we hope to enhance the array of financial instruments that financial advisors can use to match their clients' needs."
In Singapore, such SGS are not used to fund government expenditures. Instead it works as a useful pricing benchmark for local corporations issuing bonds.
To further strengthen the financial sector, Singapore's central bank is now looking into enhancing the framework for the fixing of inter-bank rates.- CNA/ms
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Is the economy really bottoming out? Hmm...
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He has to say optimistic things right?
Singapore wants to be the top few financial hubs in the world.
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singapore wants to be top in everything one lah
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Now aunties and uncles too scared to invest already...
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Originally posted by lianamaster:
Now aunties and uncles too scared to invest already...
Nonsense, all the ah ma, ah pek, ah soh and even school kids are buying shares recently.
All thinking of making a killing in the stock market.
Scared?
I don't think so.
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Originally posted by charlize:
Nonsense, all the ah ma, ah pek, ah soh and even school kids are buying shares recently.
All thinking of making a killing in the stock market.
Scared?
I don't think so.
Ok... I happen to meet those conservative types.
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i hear from the news those who bought properties are those who made a killing in the market..
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Originally posted by GHoST_18:
i hear from the news those who bought properties are those who made a killing in the market..
But also need money first leh....
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Originally posted by charlize:
Nonsense, all the ah ma, ah pek, ah soh and even school kids are buying shares recently. All thinking of making a killing in the stock market. Scared? I don't think so.
Are you one of them as well?
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wat thing in sg no need money?
volunteer to get urself checked for h1n1 also need money...
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Originally posted by GHoST_18:
wat thing in sg no need money?
volunteer to get urself checked for h1n1 also need money...
Nothing in this world is free.... haha...
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I read recently somewhere that they are offering banks some form of subsidy or grant to hire fresh grads.
Times must be really bad.
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Originally posted by GHoST_18:
wat thing in sg no need money?
volunteer to get urself checked for h1n1 also need money...
Really?
Where's the news?
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Originally posted by charlize:
I read recently somewhere that they are offering banks some form of subsidy or grant to hire fresh grads. Times must be really bad.
Well, my business peers in uni couldn't find jobs for attachment. The companies back out...leaving them at a lurch...
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Originally posted by lianamaster:
Well, my business peers in uni couldn't find jobs for attachment. The companies back out...leaving them at a lurch...
Attachment and a perm job are 2 different things.
Attachments means they make you photocopy stuff and file papers.
And they pay you a few hundred dollars a month for that.
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Originally posted by charlize:
Really?
Where's the news?
http://www.straitstimes.com/ST%2BForum/Story/STIStory_395848.html
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finance sector so insecure, always the first to get hit during recession
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Originally posted by charlize:
Attachment and a perm job are 2 different things.
Attachments means they make you photocopy stuff and file papers.
And they pay you a few hundred dollars a month for that.
Haha... what a diff....
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Originally posted by lianamaster:
Haha... what a diff....
You mean you didn't know?
When poly / uni students go for attachments, 90% of the time, they are regarded as cheap labour and used to do the mundane stuff that regular office workers don't want to do.
Yes, that would be filing and photocopying things.
The other 10% of the time, they will be given some "regular" work to do.
The company is smart enough not to make the attachees do 100% filing.
That's because they don't want to lose this cheap source of labour should the attachees complain to their poly/uni about the crap work they do.
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I have not been to any attachments....though I hear of such stories before..