THE People's Action Party (PAP) has assured Singaporeans the town councils it runs are in good shape financially.
Also, the $2 billion in the sinking funds its 14 town councils manage is in good hands, said Mr Khaw Boon Wan, the party's first organising secretary.
Mr Khaw, the Health Minister, gave the assurance in a 90-minute interview with The Straits Times at the PAP headquarters on Wednesday, aimed at addressing the issues raised by the public over the investment losses of some town councils.
'We know that this giant tsunami will pass. It will take some time, but it must pass. It will pass.'
Mr Khaw Boon Wan, the People's Action Party's first organising secretary, explains the effect of the global economic downturn on the investments of town councils during a 90-minute interview with The Straits Times
By Aaron Low
THESE are unprecedented times, Mr Khaw Boon Wan notes.
But in explaining the rationale for town councils' move into investments, he makes it clear that anyone concerned about how their funds are used must look at total performance of the investments rather than individual transactions.
And performance needs to be evaluated over longer timeframes.
Three golden rules of investment
1 Diversify your investments among different asset classes, such as cash, bonds, property, gold and equities in the hope that if one asset class falls, the others will buffer the fall so that your investment is still sound overall, says Mr Khaw Boon Wan.
2 Diversify among counters within the same asset class, for instance, buying stocks of different types of businesses, like banking stocks and media business stocks.
3 Invest only funds which you do not need in the short term.
Khaw: Complete openness is best
By Clarissa Oon
AS HEALTH Minister, Mr Khaw Boon Wan sees similarities between managing Sars and managing the current controversy over the investment of town councils' surplus funds.
For four months in 2003, Mr Khaw led Singapore's fight against the then-unknown and deadly Sars virus.
Mr Khaw likens the 'still evolving' nature of the current financial turmoil - the backdrop for the town councils' investment losses - to the unpredictability and volatility of the Sars experience.
