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18 Mar 2019
Monetary Auth of Singapore
Feedback View - 547
Are the investors greedy?

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







 


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