I REFER to Monday's letter by Mr David Lam, 'Key issues not addressed'.

We thank Mr Lam for his letter and would like to address his queries on town councils' investments.

The PAP town councils exercise prudence when making investment decisions. We take a long-term view on investment of town council funds. Our investment decisions are guided by approved financial advisers and banks. We also adhere to investment guidelines set by the Ministry of National Development.

The current financial crisis has had an unprecedented impact on financial markets around the world. If not for this financial crisis, some institutions and investments that have failed or are now deemed high risk, would have been considered very safe by most. However, as a result of our prudent and diversified investments, our sinking fund has grown and earned positive returns.

Information on investment returns and sinking funds is disclosed in the town councils' audited financial statements, and annual reports which are presented to Parliament for public scrutiny. Residents can access the audited financial statements and annual reports via the town councils' websites or from the town council offices.

As our investments and circumstances differ, the town councils will reach out to their residents directly to address their queries and receive feedback through various channels such as newsletters, websites and dialogues. We will continue to explore ways to keep residents informed of our finances.

Looking ahead, we would like to assure residents that we will continue to be prudent, and will keep reviewing our investment approach so as to grow our sinking fund in a sustainable manner to meet the long-term needs of our estates.

Dr Teo Ho Pin
Coordinating Chairman for PAP Town Councils

This article was first published in The Straits Times on December 05, 2008.