The real skill of a journalist - or a communicator - is to bring the issue/subject to the reader/audience so that they understand it, and understand how the subject impacts them. All without dumbing down (with the long term effect of lowering language standards).
I like Phaik Choo's writings. Though at times too full of colloquialism for me to understand (especially the mixture of terms). But she does bring the issue to you, so that you understand the significance of it and what it means to us. Like this one ...
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Relax, think long-term BONUS
Govt firm investing $14 billion in money-losing Swiss bank
By: SYLVIA TOH PAIK CHOO
paikchoo@sph.com.sg
(With thanks to The New Paper, 11 Dec 07)
IN less than five minutes, I understood that, indirectly, you and I may have
some money in a Swiss bank.
A little learning, however, can be a dangerous thing, so let’s limbo that
thought.
The Government of Singapore Investment Corporation (GIC) made a significant
announcement yesterday of its investment of 11 billion Swiss francs ($14
billion) in UBS.
GIC is the Government’s management company – established in 1981 – to globally
invest Singapore’s foreign reserves.
Reaction to this from the average Thamby, Daud and Hock – and I sometimes count
myself among them – is likely to be, "Whoa, Government just put our money here
and there!"
Pipe down. No, it is not.
If you are aware that only 40 per cent of working people pay income taxes, then
it follows that Singapore has to make investments abroad.
It’s to make its money pay, so the profits can be channelled back into the
country and, indirectly, some of it find its way into our pockets, like in the
form of ERS (economic restructuring shares).
Talk to people you share lifts with, in the 76-second ride up to the 38th floor
of Capital Tower where GIC held a media conference, I gleaned enough so as not
to come across new to the money beat.
All the top dollars were represented – Business Times, CNBC, Dow Jones,
Reuters, The Straits Times. Certainly no longer a curiosity today, more women
than men.
All the UBS and GIC helpers wore black, makes sense, when it comes to financial
matters, better be in the black.
In under 35 minutes, panellists Dr Tony Tan, deputy chairman, executive
director, GIC, Mr Lim Siong Guan, group managing director, GIC, Mr Ng Kok Song,
managing director, group chief investment officer, GIC, fielded questions,
making everything transparent.
All but the "undisclosed strategic investor in the Middle East" that is. Who
has invested 2billion swiss francs in UBS and remains confidential for now.
The Q&A was par for the course, peppered with "sub-prime" and "CDOs" and
"write-down", in other words, good investment or not?
UBS has announced yesterday further writedowns of around US$10 billion ($14.4b)
due to the US sub-prime mortgage crisis.
Aiyoh, why invest in something that is losing money?
Yesterday, Mr Tan explained that GIC has made a "significant investment" in UBS
because it had "confidence in the long-term growth potential of the bank’s
businesses, particularly its global wealth management business".
(With the injection of capital, GIC will own 9 per cent of the bank and is
probably the largest shareholder.)
On Sovereign Wealth Funds (SWFs or money that countries invest abroad,) Dr Tan
had four points, one, clarity on the relationship between SWFs and their
respective governments, two, recipient countries should not adopt policies that
inhibit cross-border investments, three, all players in the global financial
markets be treated equally, and four, guidelines to operate must be free from
political motivations.
Yes, but what does it all mean to Heartlander Hock?
That Singapore has serious money in its foreign coffers, on which the
Government makes very prudent investments, and we can sleep easy, building on
the dream of ang pows to come.
The press con closed with coffee and tea.
What? Not even a Swiss roll to help the hot drink go down!
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