An edited version of this letter was publised in the Straits Times on 19 May.
Editor, Forum page
In his letter “Do your checks before investing in land abroad”, Dr. Tan Tee Khoon gave a good description of the mode of operation of land banking schemes. He said “Potential investors may be misled about the prospects of obtaining planning permission or redevelopment”.
While investors should follow the advice of Dr. Tan in doing their checks before making such investments, there is also a need for the authority to play its part.
When the seller knowingly misrepresents a product that is sold to the public, it can be considered as “cheating”. When the cheating involves a large sum of money and many victims, it is necessary for the authority to investigate the complaints and gather evidence to charge the perpetuators in court.
It is better to take early action, before more victims fall into the trap. It is difficult for the public to be savvy in detecting misrepresentations in statements that are published in documents or advertisements.
We read about similar cases in other countries where action is taken by the authority to close down the operation of companies that are suspected of engaging in fraudulent activities. There is also adequate media publicity to warn the public about these operations.
I hope that our authority in Singapore take the appropriate action to prevent more people from being caught in these schemes.
Tan Kin Lian
Singapore Govt tends to like to boost about other countries learning from us. Because of this mindset, they don't seems to want to learn from other countries as they refuse to think that we have a problem.
ReplyDeletee.g.
i) Ministers' Salary
ii) Landbanking investments scam
iii) Timeshare scam
iv) Structure products scam
Wonder when will they learn? Maybe this coming election. Maybe not as % win is not important. As long as they win, it will give them the mandate to increase their own salary again.
This Govt only cares about its image, its face and its pay packet pegged to economic growth.
ReplyDeleteThey think they could sweep all these scams under the carpet and is very confident people would forgive their faults and flaws in governing Singapore because they pride themselves to be able to boost economic growth very quickly from a recession.
Fat hope we would forget, if it hits our pockets, we would never forget. There is a saying in Chinese, to take revenge, ten years will not be too late. But then before ten years are up, these Ministers would be enjoying their wealth in some first world countries, following in the footsteps of Goh Chok Tong's daughter to be quitters on Singapore, leaving the poorer and less qualified people behind.
Big fish eat the small fish, applies particularly in Singapore's context.
Mr Tan,
ReplyDeleteI hope your letter get published.
There is a good chance that it will and more important, some authority act upon it as the PAP/ Government is now in high gear to be seen as caring/ listening to the citizens.
Will post the original letter and article
ReplyDeleteStraits Times Singapore, 17 May, 2010, Monday
Do your checks before investing in land abroad
I REFER to last Friday’s report, ’200 lose $6m in British land deals’, which revealed that 200 persons have, at various times since 2006, purchased plots of land in rural places like Swindon and Gatwick in Britain through Land International (Far East), a Singapore company which is the subsidiary of parent Land International, shut down by the British government in 2008.
These 200 persons had been promised high returns with regular payouts for three years.
Singapore investors may wish to know that Britain’s Land Registry published a guide in 2008 on ‘land banking schemes’ to alert the public on schemes often touted as offering huge returns on investment. Apparently, land sold in such schemes is usually in areas protected from development by planning law – that is, land in the ‘green belt’ or agricultural land where no development is ever likely to be permitted.
According to the guide, known in short as Public21, such land is first acquired at a low price and divided into smaller plots. The plots are then offered for sale (even online) to the public on the premise that when planning permission is secured in the future for the site for housing, the plots will be more valuable. Potential investors may be misled about the prospects of obtaining planning permission or redevelopment and this in turn may lead them into thinking that they will have the opportunity to sell the plots at even greater profit to developers in the future.
The guide mentions that those operating land banking schemes often claim that they have well-known banks, other lending institutions and established developers as their partners in the schemes when this may not be the case. In some extreme cases, forged Land Registry letters have been produced to suggest that there is official Land Registry planning approval.
Singapore investors keen on land in Britain should at least peruse such a guide, and make inquiries with the Land Registry or a credible international property firm based in Singapore with overseas networks in those countries of interest to them. Singapore Accredited Estate Agencies agrees with the Consumers Association of Singapore that due diligence and background checks of both the locally registered land banking company and its parent or counterpart in the country of origin must be stringent before investors part with their monies.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
Mr Tan - saw the following quote.
ReplyDeletehttp://www.singaporelawwatch.sg/remweb/legal/ln2/rss/legalnews/67463.html?utm_source=rss%20subscription&utm_medium=rss
NO LEGAL RECOURSE HERE
'Land-banking investments involve investors acquiring direct interests in real estate rather than in securities related to real estate and, as such, fall outside the scope of the SFA and FAA.'
A Monetary Authority of Singapore spokesman, referring to the Securities & Futures Act (SFA) and the Financial Advisers Act (FAA)
Is this really true in 21st Century Singapore ?
What if the Land Banking company offers land backed investments with a claimed return of 12.5% per 6 month period?
What if the land banking company can be proved to have lied in advertising ?
What if the scheme is so obviously a scam that people should be protected from it.
Can snake oil and magic rock salesmen really operate in Singapore with no threat from the law ?:
Can start selling magic stone of foreign land with promise return.
ReplyDeleteCurrently this area is in 'no man land'. All 'bo chap'. I know of FA Firms selling LAND BANKING, some set up a separate company to do it? So is it under MAS or MND or 'bo chap' area. Looks like this is a typical 'tai chi' scenario. I know of friend bought a land in CANADA more than 10 years, the company say if redeem there are charges etc, wait...land selling soon. With the economic situation in the WEST, will it sell?
ReplyDeleteMr Tan, looks like you have to garner a group of Land Banking investors to voice their concerns.
Well the authorities to them, this will not give them PBM, why bother