Financial Guru Faber Knocks Thai 'cronyism', Pledging Scheme

[yoshiwara]

And while we're at it, let's also remember that Singapore's current Prime Minister is the son of the previous Prime Minister

Lee Hsien Loong isn't doing a bad job.

[DeepInTheForest]

Well, Temasak isn't quite the same in essence as Thai Airways or PTT. The point of Temasak is to generate returns, not safeguard Singaporean control and management of a company. The Board is made up of some massive heavy weights from IInternational business, and as a rule it makes an awful lot of return for the Singaporean government.

Now it would be better of course if the PM's missus wasn't involved, but when you have competent and impartial decision making from a board stuff tends to work. When you have Thai Airways being pulled this way and that depending on the political will of the day, you get the mess that Thai Airways is in today, as opposed to Singapore Airlines that is a very good airline with good reputation and good returns.

Temasek has actually in recent years lost so much of the Singaporean people's money in bad investments. This article will highlight the tip of the iceberg: http://theonlineciti...oss-by-temasek/

This also contributed to one of the reasons an average of 40% of the population voted against the Government in the recent elections. Didn't help that the Singapore PM's wife was in charge

Yes that's true, but they have made decent investments over the years, and the Singaporeans are smart enough to understand when someone is promoted above their pay scale.

Losing money in this market recently is hardly limited to temasak, but they will honestly try to insure they have competent people irrespective of where they come from.

Competence only goes as far as the bottom line.

And while we're at it, let's also remember that Singapore's current Prime Minister is the son of the previous Prime Minister

It is becoming increasingly clear that the enormous surpluses claimed by the Singapore government do not hold up under scrutiny.

We will have to wait and see, but in reading the posts of the blogger below, it is difficult not to believe that something fishy is going on. There have certainly been accounting irregularities.

http://www.baldingsworld.com/category/government-investment-corporation-of-singapore/

And as far as the Temasek rates of return go, they smell bad, too.

This excerpt (again, from the "Balding's World" blog) quotes a columnist from the South China Post, Jake van der Kamp:

“If you were a private investment fund manager with this sort of record, you would have every investor in the world getting down on his knees to you and bowing every time you showed your face in public. You would be venerated as a deity. The world would be at your doorstep asking you to manage its money.”

Investors today are lauded for much smaller returns much less keeping up 17% for 38 years. I have been unable to find any other investor that claims to have earned a similar return over a similar time frame. Furthermore, I cannot even find Temasek companies that earn the rates of return claimed by Temasek!!

http://www.baldingsworld.com/2012/08/02/south-china-morning-post-questions-temasek-returns/

What's the old saw about investing? "If something sounds too good to be true, it is."?

Edited October 2, 2012 by DeepInTheForest

[Chads]

And while we're at it, let's also remember that Singapore's current Prime Minister is the son of the previous Prime Minister

Lee Hsien Loong isn't doing a bad job.

No wonder the Singaporean people increasingly want him voted out Word on the street is that he's the worst PM among the 3 Singapore has had, and that he's not doing a good job.

[thedivezone]

Yes there is cronyism in our countries as well. But some more than others.

Someone cited Bush and his cronies, and they did get voted out no?

No, Bush and his cronies were re-elected in 2004 !

[thedivezone]

It's the same in Singapore. I mean the CEOs of many major companies are ex ministers. Not to mention Temasek Corp which is run by the PM's wife.

Well, Temasak isn't quite the same in essence as Thai Airways or PTT. The point of Temasak is to generate returns, not safeguard Singaporean control and management of a company. The Board is made up of some massive heavy weights from IInternational business, and as a rule it makes an awful lot of return for the Singaporean government.

Now it would be better of course if the PM's missus wasn't involved, but when you have competent and impartial decision making from a board stuff tends to work. When you have Thai Airways being pulled this way and that depending on the political will of the day, you get the mess that Thai Airways is in today, as opposed to Singapore Airlines that is a very good airline with good reputation and good returns.

Temasek . . . ? If i was a singaporean taxpayer, i'd be hugely grateful to the government for sinking . . . what was it ? half a billion US$ into Lehmann Brothers half a year before they went under . Competent and impartial decision making at it's finest !

[RaoulDuke]

Nothing like the pot calling the kettle black. Sounds like sour grapes that he cannot easily buy his way into the corrupt Thai government like he can into any corrupt Western gov't. Corruption and cronyism is hardly unique to Thailand, any country where 'investment gurus' have unrivaled access is just as corrupt as one filled with nepotism (the Koch bros and their $60 bln control the entire Republican party, 1/2 of the USA Congress). At least in nepotism, there is only a strong possibility that those in power are thieves and crooks. When those who control the money can buy their way to the top, there is 99.99% probability that they are thieves and crooks, as fortunes are never amassed by ethical and honest means.

Edited October 3, 2012 by RaoulDuke

[yoshiwara]

And while we're at it, let's also remember that Singapore's current Prime Minister is the son of the previous Prime Minister

Lee Hsien Loong isn't doing a bad job.

No wonder the Singaporean people increasingly want him voted out Word on the street is that he's the worst PM among the 3 Singapore has had, and that he's not doing a good job.

Word on the street = made up by someone.

[DeepInTheForest]

And while we're at it, let's also remember that Singapore's current Prime Minister is the son of the previous Prime Minister

Lee Hsien Loong isn't doing a bad job.

No wonder the Singaporean people increasingly want him voted out Word on the street is that he's the worst PM among the 3 Singapore has had, and that he's not doing a good job.

Word on the street = made up by someone.

Word on the street = made up by someone.

I would have to say, absolutely true, and one wishes posters would corroborate their statements with some kind of evidence.

In this case, however, finding out about Singapore and its dissidents, and the authoritarian nature of the government, is fascinating. I don't want to drag this thread off-topic, so I will simply say that an internet search turns up the cases of people who have opposed the government, and faced repressive consequences. Not unlike another country or two that TV readers are familiar with.

[Chads]

Word on the street = made up by someone.

Word on the street = made up by someone.

I would have to say, absolutely true, and one wishes posters would corroborate their statements with some kind of evidence.

In this case, however, finding out about Singapore and its dissidents, and the authoritarian nature of the government, is fascinating. I don't want to drag this thread off-topic, so I will simply say that an internet search turns up the cases of people who have opposed the government, and faced repressive consequences. Not unlike another country or two that TV readers are familiar with.

Sorry guys, I'm a Singaporean, born and bred. I used the term "word on the street" to show you all how it's talked about even at the fish market or coffeeshop. You guys can find whatever evidence you want from the internet. I could provide you with all that, but I'm sorry I don't have the time to. The fact still remains that under his leadership, the ruling party of 50 years has just gotten its lowest ever vote percentages.

[connda]

Faber said Thai property was still reasonably priced when compared with real estate in other parts of the world.

That comment insinuates that Mr. Faber owns Thai property, but he's a foreigner? He can't owe Thai property. What I'm I failing to understand here?

[yoshiwara]

Faber said Thai property was still reasonably priced when compared with real estate in other parts of the world.

That comment insinuates that Mr. Faber owns Thai property, but he's a foreigner? He can't owe Thai property. What I'm I failing to understand here?

He could for example own property stocks.