Please tell Hsien Loong or Chok Tong

Some of you reading this may have access to either one of them and you have my permission to tell them of my views about the Stock Market. My position is that the mechanism and structure have many flaws and the Stock Market is unsustainable in the long run. It will die a slow death with many innocent investors losing their life savings. We should not wait till another minibond scenario before we wake up. It is in need of an urgent review. One main point is that our market is too small, too imperfect that it can be easily cornered by the big funds or houses and be played to the disadvantage of small investors. Short selling is one feature that is often used against the small investors causing big losses to them. Short selling also disadvantages the shareholders and the company by driving the share price down against its fair value. This has many consequences to the company in fund raising and to shareholders who may pledge such shares as collaterals. The smallness of our investor pool and their limited resources are severely stressed by a constant inflow of new listings and also new derivatives. Not forgetting cross listing of stocks from other bourses. To make things worst, many of the stocks listed have proven to be raw deals resulting in many investors losing their pants. Then there is the uneven playing field between small and big investors, trading houses and big funds in the commissions charged. This literally translated into different odds favouring the big boys. Even casinos do not have different odds for big or small gamblers. The above are brief outlines of the flaws in the present system. I could further elaborate on them if necessary. If these are not put right immediately, innocent investors will continue to lose money relentlessly in the stock market. It will lead to the stifling and eventual termination of all trading activities when the small investors lose all their money, and also lose faith in the market. When that day comes, even the foreign funds will pack up and go as there will be no players in the market for them to exploit. Companies too will find it pointless to list here as the value of their stocks will become worthless. They cannot use them as collaterals or to raise fund in the market. There will be no IPOs, or if any, probably will be fly by night companies coming in for a hit and run. This is the dire strait of our stock market. And everyone seems to be in a state of eternal bliss. Yes we have a lot of good rules and regulations governing trading in the market. The compliance people and regulators are efficient. But the flaws are systemic. Do something quick.

Unhappy with other people's news?

Start your own news and tell your own story. Increasingly people who are dissatisfied or disillusion with official news or other people's news are launching out on their own and start their own news. No need to live with news or views that they are uncomfortable with. This is exactly what the students at NTU did. Three students, Chong Zi Liang, Sakaria Zainal and Lin Junjie, have set up a news website called The Enquirer. They were formerly from the Nanyang Chronicle Editorial team and wanted to report 'in depth issues that matter to undergrads.' The internet is always available to those who want to speak out or to listen to different views. We will get more diversity of news as this trend continues. And The Enquirer is another new member in the cyberspace community.

The Golden Formula not working

Earlier I posted about the Golden Formula that brought us the Olympic medals. It was working or starting to work. But the flaws of such a formula are starting to reveal itself. It is a short sighted formula. It depends on foreign talents that can be bought but can go away as quickly as they come. Foreign talents that come to us in this way have no commitment to us. They are not one of us. Unlike our own children who are born and bred here. Even paying them peanuts or not paying them anything, they will still be here. We need to rethink this parasitic principle that we can live off the talents of other countries. it is poaching in one way. And we are happy when we poached other people's citizens but obviously we would not be happy if others do that to us. Now the table tennis fiasco is beginning to tell us to wake up and look inward at our own children. For they are all we have to depend on in the long run. And this does not apply only to sports. It is applicable to all industries. Take care of your children first, look after them well. Don't be infatuated by foreigners. They come smiling when you put money into their pockets. But they will not hesitate to turn around and slap you on their way out. We need to be more self sufficient in our own talent pool. Depending on foreign talents can only be a short term measure and opportunistic. Come to the crunch, the citizens are all you got. Don't neglect your own children. Did I here that we are going in a big way to get more medals and more foreign talents?

A third reply from EMA

EMA is replying to the rising criticism of the electricity hike today. But again it fails to address the issue of forward buying and spot buying as well as the composition of natural gas in the tariff formula. Oh, in the letter it said that all Singapore's electricity is generated by imported fuel! Does this include natural gas or oil alone? The people deserve to know what is in the formula. The EMA must also put into system a process whereby they can opt to buy spot when future is too high. If their buying process is so rigid to only buy using one method and ignoring the alternative of buying low, then it is not doing justice to the people. Another point is that the hedging or buying forward system sometimes lead to losses and sometimes to gains. When EMA gains, they keep quiet and happily enjoyed the bigger profits and big bonuses. When they hedged wrongly, the loss is immediately passed to consumers. This is unfair. In businesses, there are ups and downs and EMA must take in the profit and losses in its stride instead of one way, always win and no losses.

Hold off Mean Testing

Timothy Chin appealed to Khaw Boon Wan to hold off mean testing in his letter to Today. His justification is that time is bad and recession is here. He suggested that hospital should compete for high end clients but also provide for no frills wards for those who do not want the frills. Then he compared the charges for B1($165.85) and B2($51). In his opinion, the difference is too great. He then suggested an intermediate grade like B1a. His overall reasonings are reasonable until this point. By pointing out that charges for these two wards are too wide will prompt only one kind of reaction. Ok, B2 should be raised so that the difference is smaller. And this exactly the kind of thinking Singaporeans will have, a variance from his own B1a. My point is that the ward charges remain and mean testing stops. Let the people decide what they want. Let the people be thrifty and save if they can and want to. Do not imposed on people to spend. The latter kind of thinking is the most ridiculous and can only happen here. Making people spend according to how much money they have. This is one of the reason why Singaporeans have very little savings in their CPF for retirement, simply because HDB flats were priced on how much they can afford to pay. Higher income must buy bigger flats.