For every idea, there’s a 3P strategy - Singapore

For every idea, there’s a 3P strategy  - Singapore
RAINMAKING: Mr Kua says EDB’s 3P approach involves looking at an idea’s potential, plan and proof.

PREDICTING the future is exciting business - and listening is the key to getting it right. This is the philosophy of the Economic Development Board’s (EDB’s) new business unit director, Mr Jonathan Kua - an EDB ‘rainmaker’.
‘We listen to conversations from all over the world and constantly evaluate these ideas to determine if they are suitable for Singapore,’ he said.

EDB’s business unit, set up by EDB chairman Lim Siong Guan a year ago, is the ’structural expression’ of EDB’s mission to create the best jobs for Singapore. And this involves adopting a futuristic perspective on things, said Mr Kua.

Robots, for instance, are not common now but he believes they will dominate homes in a few years’ time. Thus, he is keeping an eye on the industry, which he views as a possible future growth strategy for Singapore.

The 36-year-old, who has worked at EDB for 12 years, said ‘there is no such thing as a typical day’ for EDB officers.

‘Our work changes every day, whether it is thinking up new industries, making them happen or putting the right people in touch with each other,’ he added.

EDB has a ‘rainmaking process’ where for every idea, they have a ‘3P’ strategy, he said. ‘The three questions we ask ourselves are very Singaporean: Got potential? Got plan? Got proof?’ said Mr Kua.

‘We get our ideas from things we read, conversations we have, people we meet. If we think there’s potential, we have 90 days to think up a plan. And then the hardest part is proving that the ideas can work.’

Since its inception, the team has been hard at work building new industries, said Mr Kua. ‘These jobs are ready for Singaporeans today as a result, and we hope to grow them further.’

EDB recently announced a record-setting $16.1 billion worth of fixed asset investment in Singapore’s manufacturing sector last year, which saw a record 28,600 jobs created.

Source : Straits Times  - 28 Jan 2008

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EDB’s crystal-ball gazing throws up the key growth areas and jobs

EDB’s crystal-ball gazing throws up the key growth areas and jobs

Board’s business unit identifies five industries to develop in Republic’s long-term strategy

By Jessica Cheam
A YEAR ago, a group of Economic Development Board (EDB) officers were given the task of crystal-ball gazing for the country.
The brief was this: Spot global trends, identify new growth engines, create the best jobs for Singapore.

Today, a slew of exciting careers stemming from five newly identified industries are in the offing as a result.

In an interview last week, EDB assistant managing director Kenneth Tan outlined the country’s ‘game plan for the future’ for the first time. The five chosen industries for Singapore’s future: clean energy, environment and water, natural resources, lifestyle and sports, and non-profit organisations.

Mr Tan, who heads EDB’s new business unit - set up a year ago by EDB chairman Lim Siong Guan for the purpose of thinking up new growth areas - said the industries are the outcome of some major global trends.

The flow of people from rural to urban areas in developing nations, for example, has led to greater demand for sustainable technologies for the environment and water; while demand for natural resources from booming economies like China means a greater need for better extraction technologies.

‘If Singapore can provide these technologies and solutions, we can export them globally and ensure we’ll always have good jobs,’ said Mr Tan.

While these industries have been widely publicised by the Government in recent months, others have been developing slowly but surely.

EDB is courting international organisations such as think-tanks and humanitarian foundations to get them to set up base in Singapore.

These organisations, such as the World Bank or the World Wildlife Fund, often have operations that match those of multinational companies in scale - and reports show that they have grown at four to five times the rate of for-profit companies in the last decade, said Mr Tan.

‘These organisations offer good job prospects too. They’re often recession- proof, and for some, these jobs are regarded as having more soul.

‘We want to cater to a wide range of Singaporeans with different aspirations,’ Mr Tan added. That is also why EDB intends to launch an ‘arts belt’ this year, which will put in place an entire precinct of private museums, art galleries and auction houses.

‘For talent to come in, and to retain our own Singaporeans, we must offer a lifestyle environment that is second to none,’ Mr Tan said.

The plan does not stop there. EDB’s team of visionaries is constantly looking for new ideas for Singapore. It currently has other strategies, like looking into futuristic technology - such as robotics and nanotechnology - talent growth and building industry clusters.

So where does EDB’s crystal- ball gazing team get its ideas?

EDB has a digital database called the Matrix, which records all reports written by EDB officers for the last four decades, said Mr Tan.

Interviews with companies, research reports and market surveys, as well as a host of literature relating to virtually any industry are at the disposal of EDB officers - who are also called ‘rainmakers’ because they ‘make things happen’, said Mr Tan. These officers are also posted overseas to roam the globe and act as business development officers for Singapore Inc.

So how successful will these industries be?

Mr Tan says failure is not an option.

CIMB-GK economist Song Seng Wun said that although the industries look like good wagers, how much they can contribute to Singapore’s gross domestic product remains to be seen.

Traditional industries are still to likely dominate, he said. And the biggest challenge ahead will be competition from other countries, many of whom are eyeing similar industries.

‘Whether we can get organised quickly and get things off the ground will make that crucial difference,’ he added.

Job-hunter Yvonne Koh, 24, who will graduate in a few months, said she was glad to hear the range of new career options available.

‘There’s a perception that these jobs don’t offer as good a career as those in traditional areas like engineering or banking. But hopefully this will change in the future,’ she said.

Source : Straits Times  - 28 Jan 2008

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Banking shares’ recovery draws interest in their contracts - Singapore

Banking shares’ recovery draws interest in their contracts  - Singapore

By Yang Huiwen

NEWLY issued covered warrants on banks are likely to be in the spotlight with the rebound in the underlying banking stocks.
Banking shares had been battered badly recently, so much so that many of the call warrants issued on them went out of the money. In other words, the warrants’ strike prices were way higher than the mother shares’ current prices.

This prompted foreign banks, including Societe Generale (SG), BNP Paribas and Macquarie Bank, to issue new contracts on them last week, which have strike prices closer to the underlying counters’ share prices.

The Straits Times Index rose for three consecutive days to close at 3,159.48 last Friday, up 55.23 points, or 1.78 per cent for the week, thanks to a 75-basis-point cut in the United States federal funds rate. Financial shares saw a swift recovery as well.

DBS Group Holdings shares, which fell to as low as $16.40 last Tuesday, rose 48 cents last Friday to close at $18.94.

Mr Ooi Lid Seng, SG’s vice-president of structured products for Asia excluding Japan, said: ‘Singapore is in a better position to ride through the US sub-prime crisis and the outlook for the local banking industry looks promising.’

Loan demand grew by 16.3 per cent year-on-year in November and is expected to remain robust this year, he added.

Investors who hold a positive view of DBS can consider a call issued by SG which has a strike price of $20 and expires on July 21.

‘The outlook for DBS is positive in the short term. The share has recovered over the last three trading days,’ he said, adding that ‘buying momentum is strong’. Support in the short term is at $18.42 while the resistance level is at $19.85.

For those keen on United Overseas Bank (UOB), SG has a call which expires on July 14 with a strike price of $19. It also has a call for OCBC Bank that expires on July 7 and has a strike price of $8.

These warrants have a long shelf life of more than three months, which gives investors more time to ride the recovery following the recent sell-off.

OCBC shares rose 12 cents or 1.6 per cent to $7.80, while UOB shares gained 50 cents or 2.8 per cent to $18.08.

Source : Straits Times  - 28 Jan 2008

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Banks, property stocks turn out winners in Singapore market rebound

Banks, property stocks turn out winners in Singapore market rebound

But small caps, oil and gas stocks fail to make up for lost ground

By Lee Su Shyan, Assistant Money Editor
ATTRACTIVE BUY: Investors are looking to Reits such as CapitaMall Trust, which owns malls such as Junction 8, for better returns. — ST FILE PHOTO

AS THE market turbulence of early last week subsided, property stocks and the benchmark Straits Times Index (STI) ended among the winners, while small caps and stocks in the oil and gas sector languished.
The FTSE ST Reit Index was up 5 per cent in just the week to last Friday, while the real estate holding and development index was 3 per cent higher.

Similarly, the financials not only recovered, but were also 3 per cent higher than a week ago.

According to an analyst: ‘In any market rebound, property stocks and banks are usually the first ones to go up.

‘The small caps are more volatile. Investors who are looking to return to the market will be less willing to buy the small caps.’

Another analyst noted: ‘With the Reits sold down, the yields have now become very attractive. With interest rates likely on the downtrend, investors are now looking to Reits to offer better returns.’

CapitaCommercial Trust, which invests in office buildings, ended up 27 cents or 14 per cent last Friday at $2.18, while CapitaMall Trust, which owns malls such as Tampines Mall and Junction 8, recovered 28 cents or nearly 10 per cent to close at $3.18.

Banks also recovered. DBS Group Holdings, which went as low as $16.40 last week, recovered to $18.94. OCBC Bank closed last week 12 cents higher at $7.80, while United Overseas Bank was 50 cents higher on Friday at $18.08.

The large-cap property stocks also made gains, including CapitaLand and Wheelock Properties.

The STI was up 2 per cent over the week. However, showing that nerves were still rattled, more than half the 19 indexes were unchanged or below their week-ago levels.

For example, the China index closed down marginally, falling 1 per cent for the week. While the China stocks received a boost mid-week, from news that the qualified domestic institutional investor (QDII) scheme would be extended to the Singapore market, other concerns over China exports dominated.

The managing director of boutique finance house NRA Capital, Mr Kevin Scully, said: ‘The impact of the QDII scheme is not that significant in the short term. What people may have more concerns about, is that with the slowing economy, exports to the US may slow down. As well, with interest rates being cut, the yuan may soften. This may eat into manufacturers’ margins and hence their profits.’

The sector showing the biggest drop was oil and gas, with the index down about 9 per cent. The index includes stocks such as Aqua-Terra Supply, Chemoil and Singapore Petroleum Company.

One analyst says that he is bearish about such commodity-related stocks. He said: ‘Oil prices have peaked and if there is indeed an impending recession, the commodity stocks will be the first to suffer. There may be a slowdown in the fulfilment of orders.’

Oil closed last week at US$90.71 a barrel, way down from its US$100 levels.

Small-cap stocks have also not managed to make up for lost ground. Mr Scully said: ‘Since the news of the sub-prime crisis in the US took hold in August, smaller- cap stocks have not performed well.’

A dealer with a local house said that the jury was still out.

He said: ‘The next few weeks will give us a better idea of how these smaller stocks will fare. If the stocks can recover over the next few few weeks, then it will show whether the rally is sustainable or not.’
Source : Straits Times  - 28 Jan 2008

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Singapore JC, poly, ITE: Students should develop their own talents

Singapore JC, poly, ITE: Students should develop their own talents

Polys, ITEs ensure students do not get left out in an increasingly knowledge-based economy
LOOKING TO THE FUTURE: Digital Animation students in a studio at ITE College Central (MacPherson). — ST FILE PHOTO

Defying statistics

I WAS 17 years old when a well-meaning educator implied that my wanting an overseas scholarship was naively ambitious, and that a local scholarship was more realistic for me.

It is common for educators to influence our study paths because of their experience; they know the odds are stacked against students with mediocre results.

But students are aware of this too. For every exam we fail, we are stricken with the nauseating thought that we may not achieve our goals.

Both the substance and the tone of the principal who told her students to consider applying for ITEs show that our study paths are still being influenced.

And despite the best of intentions, I think it’s time to stop psychologically caging our goals and steering us towards lesser ambitions.

Instead, we want to - and need to hear that we can - defy statistics.
Adrienne de Souza, 21, is a third-year biology student at Imperial College London
Many ways to excellence

JACK Neo was right - we’re not stupid, regardless of what our streaming system implies.

Growing up, I have been ’streamed’ no less than six times. I was acculturated into believing that there was only one route to success - a university degree.

Students navigating through the system are constantly reminded of this.

However, it is heartening to note that while the streaming system is still around, some of its functions and priorities have shifted.

The Singapore Sports School and the Media Development Authority’s Media Study Awards, for example, give growing recognition to the ‘multiple peaks of excellence’ standard set by the Education Ministry.

I sincerely hope students today are given opportunities to identify and develop their own unique talents.

A talent in regurgitation is not the only road to success.
Andre Oei, 21, is a final-year Government and Economics student at the London School of Economics
Remaining employable

I SPENT three years studying for a diploma in mass communication and despite the general misconception that a diploma is about technical ability, I spent a fair part of my time engaging in media theory.

In the same sense, understanding the basic theory of micro-organism growth patterns is essential to doing well in a bio-technology course at an ITE.

These developments show that the so-called technical and vocational institutions are keeping up with the times and ensuring students do not get left out in an increasingly knowledge-based economy.

This, too, ensures that their students remain employable - a fundamental ethos of vocational education.

From personal experience, I am grateful for the intellectual challenge, for my school did its best for me.
Samantha Chan, 21, is a third-year communication student at Monash University
A case of hypocrisy?

UPON reading online the fall-out from a principal’s harsh words, I cannot help but sense an inherent hypocrisy among those who criticised the principal.

Typical retorts often bemoan the principal recommending ITEs over polytechnics, saying that this ‘demoralises’ the students.

Yet such an argument presumes that polytechnics are naturally better choices than ITEs. Why else would studying at an ITE be ‘demoralising’?

It seems that we have returned to the issue of educational elitism once again - to assume that polytechnics are inherently better than ITEs is the same kind of thinking that assumes an education at a junior college is naturally superior to one at a polytechnic.

It would be helpful if critics took the time to consider that, maybe, the principal really had the students’ best interests at heart.
Shawn Woo, 23, is an honours-year political science student at the National University of Singapore

Source : Straits Times  - 28 Jan 2008

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20,000 attend reconsecration of Singapore Sri Sivan Temple

20,000 attend reconsecration of Singapore Sri Sivan Temple

By Tara Tan
RITUAL REOPENING: President SR Nathan (far right) and Mrs Nathan at the reconsecration of the Sri Sivan Temple in Geylang yesterday. The temple, one of Singapore’s oldest Hindu ones, temple, has reopened after renovations that took two years.

HOLY chants punctuated the air yesterday morning as about 20,000 people turned up for the reconsecration of one of Singapore’s oldest Hindu temples.
Devotees showed up in droves, forming long queues outside the Sri Sivan Temple in Geylang, where they were blessed with holy water as flutes and drums blared in the background.

The ceremony marked the grand reopening of the temple, following a $5.5 million makeover that took two years to complete.

‘This temple has been around since my grandmother’s time,’ said 69-year-old Madam Vimala Krishnan, a regular worshipper.

‘It was a very emotional moment for me as my family has been involved with the temple for years.’

She was among the thousands of devotees, including Deputy Prime Minister and Law Minister S. Jayakumar, who watched as President SR Nathan unveiled a plaque commemorating the event.

During the two-year makeover, the entire temple was repainted to retain its unique design elements.

Skilled artisans from India, including a stapathi or chief sculptor, were brought in for sculptural and repainting works.

The temple boasts two new lifts, making access easier for the elderly and disabled.

Another floor has been added to the multi-purpose hall, which serves as an auditorium and meditation room.

The electrical and plumbing systems have also been renovated.

The Sri Sivan Temple, which first opened in the mid-19th century, is considered an architectural masterpiece.

It is the only Hindu temple in Singapore that fuses North and South Indian architecture.

Its three vimanams are also the tallest such towers found in Hindu temples here.

The ceremony yesterday was the sixth recorded consecration for the temple, which was previously located in Orchard Road and Serangoon Road before moving to its current home in Geylang East Avenue 2 in 1993.

In a written message, President Nathan paid tribute to all those who had been involved in the temple’s renovation.

‘They have worked tirelessly, raising and providing funds and devoting much time and effort,’ he said.

Festivities will continue for the next 48 days as the temple hosts a range of performances by local and international classical singers, dancers and musicians.

The events run till March 15 and will take place outside the temple. The concerts are free and open to the public.

Source : Straits Times  - 27 Jan 2008

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Singapore SM confident Singapore will hit growth forecast

Singapore SM confident Singapore will hit growth forecast

He believes robust growth in Asia will keep economy on track this year

By Zakir Hussain

DESPITE the credit crunch in the US, Senior Minister Goh Chok Tong is confident that Singapore’s economy can meet this year’s official forecast of 4.5 per cent to 6.5 per cent growth.
He said yesterday that it would be possible as a result of ‘robust growth in Asia’.

His views echo those of Prime Minister Lee Hsien Loong, who said last week that he was confident the Republic would weather the current global market turmoil and do well this year.

Mr Lee cited robust domestic demand in China and India as one factor that would help boost Singapore and others in the region.

Mr Goh, who is chairman of the Monetary Authority of Singapore, also believes that Asian economies like China, India and Vietnam would continue to grow.

‘We are not now overly dependent on the United States economy,’ he said, adding that he was ‘not overly pessimistic, despite the grave uncertainty over the credit crunch’.

WHY WE’LL DO WELL
‘We are not now overly dependent on the United States economy.’ - SENIOR MINISTER GOH CHOK TONG

He said: ‘This is an international financial crisis forced by the sub-prime problem. The stock market has gone up and gone down and the credit squeeze will go on for quite some time.’

But he acknowledged that if the US economy were to go into a recession for a quarter or two, growth elsewhere would be affected.

‘On the whole, the real economy should be on track for some growth this year in Singapore,’ he said.

Mr Goh, who was speaking to reporters at his Marine Parade constituency where he handed out hongbao and Chinese New Year gifts to 48 needy residents, also welcomed news of rail lines reaching the constituency.

Transport Minister Raymond Lim announced last Friday that two new underground MRT lines would be built by 2020.

One of these lines, running from Changi to Marina Bay via Marine Parade, would allow commuters to travel from Marine Parade to Marina Bay in 20 minutes.

Said Mr Goh: ‘I’ve not got the details yet and I don’t know where the station is, but so long as the line passes through or near Marine Parade, that’s good news for the residents because then they can go to anywhere in Singapore quite conveniently.’

He also said the Transport Ministry’s plans to overhaul land transport was ‘good news’.

He added: ‘The ministry is putting emphasis on the interest of the public…But the difficult part is the vehicle population growth.

‘You can see year after year, there are more and more cars on the road and coming to Marine Parade now takes a longer time than before.’

Source : Straits Times  - 27 Jan 2008

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More Singapore govt agencies enlisted to fight disease

More Singapore govt agencies enlisted to fight disease

PUB, LTA and others helping to wipe out breeding sites in Little India

By Lee Hui Chieh

HEALTH officials have enlisted the help of several government agencies in a bid to halt the spread of chikungunya, a mosquito-borne disease that has infected 11 people in the last two weeks.
The authorities were conscripted to wipe out the disease-transmitting Aedes mosquito and its breeding grounds in Little India, Minister for the Environment and Water Resources Yaacob Ibrahim said yesterday.

He said the national water agency PUB, the Land Transport Authority, the Singapore Land Authority and the Urban Redevelopment Authority are helping the National Environment Agency (NEA) with its cleanup. The effort is being concentrated on Clive Street, the centre of the outbreak, and the surrounding area bounded by Rochor Road, Race Course Road, Lavender Street and Jalan Besar.

Since last Monday, the land agencies have been asking residents and shopkeepers to remove goods and rubbish stored in passageways, back alleys, vacant lots and on the roadside.

PUB has also been unclogging drains and flushing them with water.

Speaking to reporters yesterday, Dr Yaacob said: ‘We are taking this opportunity to clean up Little India.’

He said ‘just to be sure’, NEA officers had also been sent on a search-and-destroy-

mosquitoes mission in MacPherson, home to the latest person to have been hit by chikungunya.

This 11th patient, a Singaporean man who works in Little India, is believed to have been infected while waiting for a bus.

The NEA has checked all bus stops in the Tekka area, including the one frequented by the man, but did not find any mosquito breeding sites.

Environment and health officers will be checking premises in the area. They will also take blood from people living and working within a 150m radius of the bus stop.

Singapore is in the midst of its first outbreak of chikungunya, which has symptoms such as fever, joint pains and nausea.

Prior to this, all 13 cases of the disease had been imported and had not spread.

Since the Health Ministry was notified of the first patient on Jan 14, its officers have screened 1,795 people working or living in Little India.

It has also hospitalised those with the virus in their blood in an effort to shield them from further mosquito bites.

Environment officers have inspected more than 3,200 premises and destroyed 63 mosquito breeding sites.

Dr Yaacob urged people to do their part by seeing a doctor if they had symptoms of the disease. He did not rule out making the screening of people working or living near the patients compulsory, but said that this was unnecessary at the moment.

‘We think things can be controlled at this point in time…We are quite confident in terms of containing this particular outbreak,’ he said.
Source : Straits Times  - 27 Jan 2008

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Singapore Job centres work to help long-term unemployed

Singapore Job centres work to help long-term unemployed

By Clarissa Oon
JOB SATISFACTION: Ms Sarina was a housewife who turned to North West CDC for help finding work. Now employed at Income, she credits her job counsellor for helping her stay positive despite rejections. — ST PHOTO: LIM CHIN PING

AFTER he was fired in 2003, former truck driver Chua Teck Kwee has had a tough time finding a job.
The 57-year-old, whose drink driving cost him his licence, has applied for more than 20 factory- and construction-related jobs on his own or through government job placement centres.

But success eludes him.

Still, he is adamant that he will not lower his standards and take just any offer that comes his way. With only a Primary 5 education, the father of one draws the line at cleaning jobs.

But when he finally found a job as a forklift operator last year, he quit after three months.

‘I was bitten by mosquitoes all the time,’ he complained in Mandarin of his job at a warehouse in the western part of Singapore.

‘And the salary was so low - below $1,000 after CPF.’

He earned more than $3,000 a month during his 10 years as a truck driver.

Mr Chua is among Singapore’s 6,000 or so long-term unemployed - people out of work for more than a year - who had registered with government and community job placement centres last year.

Their plight has come under the spotlight lately as unemployment in Singapore hit a 10-year low of 1.7 per cent.

The long-term unemployed make up roughly 40 per cent of the 15,000 people who sought help from the job centres despite the buoyant job market.

The clue to their struggle can be found in the composition of this lower-income group.

It is made up mainly of mature workers aged above 40, housewives in their 40s and 50s who want to go back to work and people with physical disabilities, medical conditions or past criminal records.

Most also have little schooling, even fewer marketable skills and worse, face stiff competition from foreign workers who are willing to work for less pay.

The near-full employment market has shortened the job queue at the six career centres run by the Workforce Development Agency (WDA) with the five Community Development Councils (CDCs) and the National Trades Union Congress.

The queue was reduced from 40,000 people in 2003 to 15,000. Of these, the long-term or chronically unemployed make up more than a third.

Job counsellors say that their biggest challenge is changing the mindset of these people and arming them with skills for a workforce that threatens to leave them behind.

Skills training and counselling are at the heart of the help programmes run for the unemployed by community self-help groups such as the Chinese Development Assistance Council (CDAC), Mendaki and Sinda.

‘We are seeing fewer job seekers now, but the ones walking through our doors are those who faced the same problems six years ago because of age, poor health or lack of skills,’ said Mr Goh Wee Siong, CDAC’s manager of skills training.

After sussing out what a struggling job seeker needs to do to improve his skills, Mr Goh and other counsellors will refer him to subsidised training programmes, including those developed by the WDA.

One example is the Employability Skills System (ESS), which boosts their literacy, numeracy and general workplace skills.

It is part of a system of national skills qualifications accepted by employers. Other courses and qualifications cover industry-specific skills in sectors such as aerospace, food and beverage and financial services.

However, training alone is not enough to help these job seekers as reasons for their unemployment may include ‘resistance to changing their job expectations and unrealistic expectations in terms of salaries’, said WDA chief executive Ong Ye Kung.

One-to-one counselling is critical to help them build confidence and to adjust their expectations, say employment experts.

When Ms Sarina Mohamad, 35, began job-hunting after being a housewife for more than seven years, she said she had ‘absolutely no confidence in myself’.

‘I was not prepared for job interviews and had no idea about employers’ expectations,’ said the bubbly single mother of three, who approached the career centre at North West CDC for help last June.

Two months and four unsuccessful job applications later, she found work as a customer relations officer at Income, the NTUC insurance cooperative, earning $1,500 a month.

She credits her job counsellor for helping her keep a ‘positive attitude’ despite the rejections.

Mendaki coordinates a Careerlink Plus programme that provides counselling to the long-term unemployed even after they have found a job. This is to help them adjust to their new workplace.

It is an uphill task.

Of the 11,000 people who found jobs through the career centres last year, nearly half threw in the towel within three months.

The most common reason for that, WDA surveys found, was that the job did not meet their expectations - for instance, they found the pay too low.

But perseverance paid off for Madam Thanapakiam Erulapan, a 60-year-old widow and one of Careerlink Plus’ success stories.

Two years ago, she struggled to adjust to the fast-paced, computerised work environment at the asset management company where she was a customer service officer.

The first few months were horrible, she recalled. But she drew support from her career management officer, who ‘kept encouraging me to endure as jobs for mature workers are hard to come by’, she said.

She hung on and adapted well enough to get a promotion.

‘I am coping well now and am contented with my job,’ she said with a smile.

Source : Straits Times  - 27 Jan 2008

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Singapore Dr Tony Tan says Sovereign Wealth Funds are here to stay

Singapore Dr Tony Tan says Sovereign Wealth Funds are here to stay

S’pore : Sovereign Wealth Funds, or SWFs, are here to stay and it can help companies tide over financial difficulties.
But it is vital to have a proper code of good practices in place to govern their operations.

This is the view of Dr Tony Tan, Deputy Chairman of the Government of Singapore Investment Corporation (GIC), who added that his one big worry for Singapore in 2008 is rising inflation.

He said: “My overall worry for 2008, even more than this economic recession is inflation. Oil prices are high, food prices are going up, we’ve already felt the effects in Singapore. And the biggest worry to the world economy is if inflation comes back and increases, then I think this would have very serious effects for the US economy, for the economies of the whole world and ultimately for Singapore.”

He was speaking to Singapore reporters on the sidelines of the World Economic Forum.

The US sub—prime mortgage crisis sent stock prices reeling recently and reputable banks like UBS and Citigroup had to source for investments in order to write off bad loans.

The GIC pumped in more than US$16 billion, or over S$22 billion, into these two financial institutions.

And Dr Tan said it did so for long—term investment, and not to bail out the banks or help stabilise the US financial system.

He said GIC takes a conservative approach to investments and adhere strictly to risk perimeters.

He said GIC has a responsibility to the government and people of Singapore to make sure funds are managed for the good of the citizens.

He said “it’s not our job to try to be a white knight to save the world’s economic system. That’s the job of the IMF.”

Dr Tan said: “We always look at the risk first. Whether it comes within our risk management framework, whether it’s not excessive. Having decided that the risk is acceptable, then we look at the returns. Our philosophy is if you look after the downside, the upside will look after itself.”

The financial climate has become volatile recently, but Dr Tan is not concerned about what will happen in the first half of this year.

Instead, he is more worried if the recession continues in the second half of the year: “Even if there’s a recession and these measures taken by the Feds and the US government succeeds in stabilising the economic environment and the economy starts to recover, maybe second quarter, third quarter, then basically it’s a normal adjustment.

“We’ve had three to four very good years, when markets were rising, economies were expanding, credit was widely available, so every fund manager, including GIC did very well. I mean we all look like geniuses. But it’s easy to do well in a rising market. Not so easy to do well in choppy market or in a downturn.”

In Davos, the subject of Sovereign Wealth Funds became the flavour of the week.

Dr Tan who met with several finance ministers and CEOs discussed this matter extensively.

Many wanted to know what GIC does and why it is investing so much money in UBS and Citigroup.

So Dr Tan believes that the way forward is to make GIC’s investments more transparent, allowing people to have a better understanding and to allay any fears that may arise from it.

Dr Tan said he supports the IMF idea for a code of best practices for SWFs, but said the proposals are still preliminary.

Dr Tan said: “The SWFs are here to stay and that’s why we believe it’s good to have some form of better understanding, some form of code of good practices so that the operations of the SWFs and the reactions of the recipient countries will not lead to further problems. Because the SWFs can play a role. They’re not going to go away. It’s just a matter of working out the process whereby they can continue their operations which is good for them and good for the companies in which they invest.”

On GIC’s part, Dr Tan said it will provide more information on its processes, governance and investment motivations by the second quarter of this year.

As for the code of best practices to be formulated under the IMF, Dr Tan said it should be based on factors like flexibility, avoid being too prescriptive and be made voluntary to some extent.

The code should also not disadvantage the SWF countries.

It should factor in clarifications on the purpose of the SWF investment and how the funds are governed.

Dr Tan also revealed that GIC has decided not to take a seat on the UBS board of directors.

As GIC invests in many other banks, it would not be appropriate to do so.

In addition, GIC’s investment is not intended to control UBS or have a say in the management of the bank. — CNA/ch
Source : Channel NewsAsia  - 27 Jan 2008

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