(Source: The Straits Times)
With reference to our earlier post "Good Pressure on the Singapore Government", the Singapore Government has finally decided to guarantee all bank deposits with immediate effect. In Singapore where almost everything is either a monopoly, duopoly or oligopoly, it is good to have some competition to ensure some equity.
This is a sharp turnaround from their declaration that there is no need to guarantee bank deposits just 2 days ago:
(Source: earthtimes.org )
This is because, as mentioned in our previous post, Singapore cannot afford to have foreign funds migrating to Hong Kong: It will only spell the beginning of the end for Singapore. By matching Hong Kong's move, what will be incurred from this guarantee will be higher banking operational costs, which will still be passed down to the us consumers, because banks, being profit oriented entities, are not going to absorb costs for the masses (More details on everything you wanted to know about what happens behind the scenes in the banks, in our earlier post "MAS Speaks up: What Investors Need to Beware").
We will analyse rising costs and inflation and how it affects the man in the street in our future post. Meanwhile, please do leave your comments or email us should you have any issues that affect the average man.
Your humble servant.
The Straits Times
Good Pressure on the Government
MAS Speaks Up: What Investors Need to Beware