It’s a big gamble
Goh Eng Yeow wrote an article about Bold Ambition and Big Gamble in the ST last week. SGX is taking a big gamble to turn itself into a New York or London in the finance industry. It is pulling all the stops, all the strings, putting money where it is to bring in the giants, the big funds and their big machines, high speed computers, to turn SGX into a world class bourse. In his comment he said, ‘The SGX has wagered a lot of time and money with no guarantee it will pay off.’ He concludes by saying that ‘the greatest irony of the SGX approach: For all its initiatives and innovations, the fate of its ambitious strategy now rests with the aussie politicians.’ Another irony that I may add is that the aspiration also rests on the small pool of small investors waiting to be eaten up by the big funds and their mean machines. The question I like to ask is whether Singapore has a big enough base of investors, with the dough, to be a world class stock exchange? Or does a world class stock exchange need a pool of small investors or just the big funds and their machines will do the trick? Another question of moral responsibility. In the madness to be big, are there considerations and systems put in the protect the small investors. Or the small investors are just collateral damages for the goal of being big for the sake of being big?