34,000 retail investors are likely to lose up to 90% of their investment in Hyflux preference shares and perpetual securities.
This will be a painful loss.
To make matters worse, some people said that these investors are "greedy". They are buying an unrated securities paying an interest rate of 6% per annum. Surely, they should know that these securities are risky?
But the investors replied that 6% is not really that high. They are not investing to earn 10% or higher.
Furthermore, they are investing in a well known company that has been successful in developing desalination plants.
If this company is in bad shape, why are they allowed to sell their securities to the retail investors? Is there any body that helps the retail investors to scrutinize the quality of the investments?
Should the regulators - MAS or SGX - have insisted that the financial advisers or the board of Hyflux post certain cautionary statements to alert the investors of the potential risk?
I wonder if the investor protection process in Singapore matches that of other countries?
Tan Kin Lian
https://tklcloud.com/Feedback/feedback2.aspx?id=1230
This will be a painful loss.
To make matters worse, some people said that these investors are "greedy". They are buying an unrated securities paying an interest rate of 6% per annum. Surely, they should know that these securities are risky?
But the investors replied that 6% is not really that high. They are not investing to earn 10% or higher.
Furthermore, they are investing in a well known company that has been successful in developing desalination plants.
If this company is in bad shape, why are they allowed to sell their securities to the retail investors? Is there any body that helps the retail investors to scrutinize the quality of the investments?
Should the regulators - MAS or SGX - have insisted that the financial advisers or the board of Hyflux post certain cautionary statements to alert the investors of the potential risk?
I wonder if the investor protection process in Singapore matches that of other countries?
Tan Kin Lian
https://tklcloud.com/Feedback/feedback2.aspx?id=1230
1 comment:
Govt seems to be hands off in Hyflux case, then we read the Authorities
are a sharp bystander, waiting for Hyflux to default, then PUB who is owed money would move in to confiscate the desalination plant.
Meaning they dun want to put in good money into this bad venture, but will retake back under pretext of protecting a precious resource.
Well retail investors would be made the sacrificial lamb.
Mr Tan is right, this case is even worse than the Minibond saga, at least Mr LKY seems to have a hand in it to help the investors.
Now with the new PAP Govt, you die your own business. They rather bail out an Indian Telecoms Company in India by asking Singtel and GIC to pump in our country's funds, guess about 1.7b, to bail the former out, said to be after cutting a loss of S$2b by Temasek Holdings.
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