I read with dismay the comments from SM Goh Chok Tong with regard to the MiniBonds holding "I know (individual) Singaporeans have been hurt; they have invested in Lehman Brothers mini-bonds, in High Notes ... and more have been hurt investing in equities, But that’s life — if you want to have a good rewards, you’ve got to take risk. Otherwise, leave your money in your CPF ... Four per cent is a fabulous return without risk. Singaporeans complained it was too low, (but) now they know the meaning of a capitalistic existence.” The comments can be found HERE. My disappointments are:

1. The MiniBonds were sold as safe instruments, not high risk. Misrepresentations were the issue here.
2. It is not right to compare cash and CPF investments. There is no basis of comparison because the risk-free rate of 4% mentioned assumes that investor uses CPF to buy MiniBond. MiniBond cannot be purchased using CPF. The approriate risk-free rate to use should be say a SGS Government Bond currently at 2.42%pa for the most recent issued 5 years to maturity bond.

SM Goh's comments as Chairman of MAS confirms my suspicious that MAS is not keen to do anything about the fiasco for MiniBond holding. Since the top man is not keen, naturally the subordiates will not find it urgent to investigate the matter. This explains why MAS has taiji the matters to "3rd parties". What does it mean to investors? Lessons are:

1. Rely on nobody including the government.
2. Rely on yourself through education.
3. When making any investment decision, always have an asset allocation. Those who put their entire savings into the MiniBond has obviously no asset allocation.