Daily Lessons for Life 27 June 2010 0 - MM Lee: "I'd rate myself an A or A-"

"Sun, Jun 27, 2010 AsiaOne - MM Lee: 'I'd rate myself an A or A-'

Having shaped the financial industry with the late Dr Goh Keng Swee, Minister Mentor Lee Kuan Yew rated his contribution to the financial industry an A or A-.

He said 'we could do better', but also qualified that 'the Singapore government always takes a very conservative view when it rates itself'.

Speaking at the 37th annual Association of Banks in Singapore (ABS) dinner on Friday, he also said that Singapore was only big enough for two banks, not three."

The wise old man has spoken again. He is right to give himself an A or A- for the handling of the financial industry of Singapore. It is good of him to acknowledged the contribution by one of his top right hand go-to men, the late Dr. Goh Keng Swee.

Lessons for me are:

1. conservatism with finance is always the best policy. Though Singapore banking industry did committed some slack discipline with 'mis-selling' of products that are clearly unsuitable to certain class of 'investors', it has by and large prevented from too liberal and credit loose!;

2. the intervention in getting Singapore banks to merge from more than 5 to the current big 3 was not what he has ordered, as he has clearly stated again that his vision to have one or two Singapore banks big enough to go regional truly. It shows that the government in Singapore do not dictate that much in certain banking industry. In some other countries, the banks could have been ordered to merge and no resistance will be offered. It will stir the talk of merger & acquisition in the local banks again as we are now down to OCBC, UOB and DBS banks;

3. his comments about there is a real demand by FTs for properties in Singapore is valid if we based purely on supply and demand. At the same time, if it affects the type of property that locally born and bred young Singaporeans and caused it to go way beyond their reach, it can be a potential general election issue. He dismissed the link between property bubbles and general election, which is a bit stretched. It is a moot point.

Great to continue to hear wise words from the 80+ years old leader. The big question is always: how long can he continue to contribute and how the outside world will view the future of Singapore when he finally passes on as there is only one MM Lee! That will be the challenge for Singapore next generation leaders. It will not happen if no one takes it up from him.