In praise of Blind Faith

3 members in our family invested in Hyflux perpectuals, my husband, my daughter (upon my bad advice) and myself. Though in the same family sharing information, misbeliefs and non 'information' we behave very differently when come to money investment.

Hyflux's CEO used to be the country's poster girl whom I admired partly because we share the same surname. From starting a company selling water filters and treatment chemicals she had grown Hyflux into an internationally branded water treatment company listed on Singapore Exchange and lauded by the government for building the nation's biggest combined desalination and power plant in 2013. The company had also expanded to build facilities in Oman and Saudi Arabia.

Temasek invested in the company in the early 2000's but exited in 2006. However most retail investors are not aware of the exit and went in by a leap of faith. Due to a combination of high leverage, crumbling electricity prices and contract cancellation cum delayed payments in Middle East, Hyflux is now on the brink of insolvency. This left investors bewildered as to how such a respectable company can fall so fast while white knights appear and disappear to save it.

As I was the one who recommended Hyflux perps to my daughter and knowing that she is highly risk adverse, I made her sell the securities when I read the first wave of caution by analysts. At such she suffered 3 % capital loss which was more than recovered from the dividends collected. Myself I hanged on for a while believing that the government would not let this Singapore brand come to ruins. Fortunately my treasury training taught me to cut loss and I sold two thirds of my Hyflux investment at 23% capital loss but held on to 10 lots still maintaining my faith in the country's poster girl. At the same time I advised my husband to do likewise with his 30 lots. I had to help him reason out that the dividend collected over the years would contra against the capital erosion such that the loss is less than 10% net. However my husband, being someone who can never bear losses, did not heed my advice. Now he sighs when reading about white knights that come and go.

In a surprising move, the latest potential white knight is considering some S$400m capital injection while offering a better deal for retail perpectual security investors, (better than what perp investors are legally entitled as they actually rank almost last next to shareholders). Apparently the white knight makes a special offer to these junior creditors instead of senior creditors because the former "took a passive blind faith risk" while the later "took an active business risk with ringside view".

When I read this I congratulated my husband because he stands a chance to recover his money due to his 'passive blind faith'. I too stand a chance to recover my balance money despite my  'passive blind faith' and unforgivable laziness because I am financially trained and had failed to be diligent enough to do my homework before investing.

The Encompassing Mountain

On the road up to Kundasang , Sabah where Mt Kinabalu situates we could only see cloud covered mountain ranges. Even at the resort which promised a good view of the mountain we could not figure where the peak was. Only at sunset could we catch glimpses of jagged crevices appearing here and there depending on how much the moving golden clouds wished to conceal or reveal.

The next dawn revealed the whole mountain in its monumental splendour. After quick snapshots to capture the enchanting scene, we settled down on the balcony with eyes fixed on the hue and shades of the mountains  transforming by the moment. At some angle the peak seems to wear the image of an ancient god with a crown. When the clouds weave in and out you imagine its spiritual power.

During the day we hired a car to bring us to a cattle farm. The place has a closer view of the peak and we spent some time staring at it while chatting with the driver.  It turned out that our driver assisted in the rescue operation of the 2015 accident caused by an earthquake which killed 6 children and 2 teachers from Tanjong Katong School. Though we could not fully understand all he was relating we could sense his emotion when he described the heart wrenching moments helping to ferry the dead bodies of the children.

That evening the mountain was again its majestic self . While taking in the magic of the mountain overlooking the surrounding villages my mind returned to the 2015 accident. A year after the quake 20 former Tanjong Katong School students, parents and relatives climbed Mt Kinabalu to pay tribute to those who lost their lives on 5 Jun 2015. I imagined when they fixed their eyes on the mountain which often looks so encompassing they may perhaps feel that their departed loved ones are with the Divine.

Admirable people

Turns out that my hairdresser stays in Potong Pasir, a single constituency under an  opposition party between 1984 to 2011.

Recently I happened to be walking around that area on a visit to an elders' day care centre run by a church. As I was early for my appointment I roamed around the vicinity. There is a lot of renovation and upgrading activities going on and you can tell that the sprucing up had started with the apartment blocks nearer the main road and central area and now progressing further into the fringe area.

I was astonished to see the state of some of the HDB blocks where the repair has yet to be carried out. With paints peeling off the walls and the staircase chipped and stained they looked totally run down and in disrepair, a far cry from the normally well maintained HDB flats in other neighbourhood.

In July 2012, shortly after the ruling party won the PP seat, News@Asiaone reported:

"Residents in Potong Pasir are finally getting the chance to upgrade their flats and surroundings, ending their 28-year wait.
Announcing the news on Thursday, its MP Sitoh Yih Pin said he received approval for upgrading from both the Ministry of National Development (MND) and the Housing Board (HDB) early this week". (All upgrading work used public tax money)

I recalled my hairdresser remarking that Potong Pasir is now very different from a few years ago, much more pleasant and livable. I joked she will no doubt vote for the ruling party this coming election. 当然 (of course) she said and added that the flats have appreciated in value, and then with a tinge of guilt justified that the residents have supported Chiam See Tong (ex-MP) all the way until his wife took over when he suffered from ill health.

As I sauntered among the blocks of flats which are yet to be upgraded and spruced up, I can not help but admire the selflessness of the residents who did not succumb to dirty politics for almost 3 decades, admirable people.

Surrogate Grandma

A few years back when Tan Chuan Jin was the minister for Social and Family Development the counselling centre I volunteered with had a dialogue with him. I participated in the dialogue and suggested that MSF tap the big pool of retirees to provide counselling services in the community after being trained. Obviously my suggestion was not noted.

In an article entitled "Life begins at 60" the writer described how the value of experience and wisdom in senior citizens was tapped by a psychiatrist in Zimbabwe. To provide counselling service in rural areas the doctor has to train villagers. It turned out that grandmothers proved to be the most effective. The study showed that patients who received 6 one-to-one therapy sessions from the trained grandmothers had a lower incidence of depression and anxiety after 6 months. The doctor ascribed the grandmothers' effectiveness to empathy, good listening skills and an ability to reflect.

It is often said that whatever techniques used by counsellors, their potential effectiveness is weak unless the counsellor is successful in building a strong therapeutic alliance with the client. Older people tend to be less judgmental, more authentic and having experienced much in their lives  display a more accepting attitude towards life's difficulties. They also know which are the effective and ineffective ways to cope with negative events.

Even if the ministry is apprehensive of Singapore grandmothers assuming a professional social work or counselling role, this rich pool of retirees can always be tapped as mentors, befrienders or if you will just being the missing "mother" or "grandmother" in the lives of many children from dysfunctional families.