Comments on: Town councils investing in stock market

By: Ask Chris How! » Blog Archive » Should Town Councils be investing in high risk investments?

Tue, 16 Oct 2007 03:59:08 +0000

[...] to the blog post made in mrbiao.com, the writer found that Holland-Bukit Panjang Town Council was listed as one of the majority [...]

By: gecko

gecko — Tue, 16 Oct 2007 02:54:34 +0000

I think it is ok as long as there is a formal risk mgt policy and good risk mgt practice in place.
I do not wish TC to hide money underneath their pillow cases.
As for MTM, you can always check the SGX for that share price.

By: noname

noname — Sat, 13 Oct 2007 14:31:45 +0000

You may find this report interesting, especially the part on using sinking fund to invest:

http://www.sembawangtc.org.sg/annual%20report/2004-2005-page16-20.pdf

By: simplemind

simplemind — Sat, 13 Oct 2007 12:51:59 +0000

GIC can do so why not Town council? Ha Ha!

By: chin ho KONG

chin ho KONG — Sat, 13 Oct 2007 11:14:31 +0000

well, those MPs who advocate CPF money can be invested in trustee stocks are still in parliament! we are still holding the babies, while they are on their way to be seating board seats and qualify for COE as president

By: Obiterdicta

Obiterdicta — Sat, 13 Oct 2007 11:10:27 +0000

The Town Council Act, read today with Section 33A of the Interpretation Act, gives town councils the power to invest their funds in a manner that they deem fit, in line with powers that are given to other statutory body.

By: Crap

Crap — Sat, 13 Oct 2007 08:13:52 +0000

A web of connections similar to NKF maybe ??

By: Crap

Crap — Sat, 13 Oct 2007 08:10:47 +0000

Now I know why PAP Town Councils need so much money.

In good times, if the stocks earn, will it go back to the residents in the form of subsidies ?? Who benefits ??
In bad times, who will foot the bill for the debt ?? The money need to come from somewhere right ?

I feel Town Councils should not go to such risks unless for a good reason. It is a form of gambling.
It should just stick to just proper fund management. The money is after all from residents who pay for services provided by Town Councils.

http://theonlinecitizen.com/2007/10/02/uniquely-singapore-f1-or-f9-%e2%80%9cresidents-willing-to-pay-more-for-service-and-conservancy%e2%80%9d/

By: jason

jason — Fri, 12 Oct 2007 10:18:02 +0000

Could this be another way to move “cheap fund” from the government to Creative?

By: mrbiao

mrbiao — Fri, 12 Oct 2007 03:59:50 +0000

I don’t know when they bought into the shares, but everyone knows that Creative has been losing market value for the longest time… so whether they have just bought in or had already been in for a while, it is almost certain that they are losing money.

Imagine if they had bought in when the stock was trading at about $10, now its just about $6, that would be a huge loss, an amount that many normal Singaporeans would never be able to make in a lifetime.