Asian values and transparency.

The Straits Times JAN 27 1998 

Asked if the concept of Asian values and a general lack of transparency were
responsible partly for the region's financial problems, Mr Lee ; explained
that having Asian values did not necessarily translate into having a general
lack of transparency. 

 "In Singapore we've got Asian values and we are completely transparent and
our markets have not been affected as much. But it's still been affected
because it's been pulled down by the region. 

 "They are two different things -- one is the way you structure your social
assets or values; the other is running an open, transparent and predictable
financial system"



The Straits Times, January 19, 1998 

  "What isn't price-sensitive may give an investor a little bit more of an
insight into the way a bank or company operates and may also give him some
comfort."

   Last Wednesday, Deputy Prime Minister  Lee Hsien Loong  told Parliament
that the lack of disclosure by Singapore banks had led to people fearing the
worst in the face of the regional currency crisis -even though the institutions
were sound.

   He said the recently formed Banking Disclosure Standards Committee was
expected to recommend changes "well within this year", to lift Singapore
standards of corporate disclosure to those of developed countries.

   Mr Kwok said he was hopeful the disclosure standards committee, headed by
banker Elizabeth Sam, would set the precedent for other groups of listed
companies to tell their shareholders -- not to mention potential investors
-more.

   "By having the banks go through such an exercise, maybe other industries
will follow suit on their own accord. It depends on what the committee
recommendations are and the extent to which these are put into practice," he
added.


   A banker who sits on the nine-member team, Mr Connal Rankin, said: ";The
purpose of disclosure or non-disclosure is not so much to protect yourself
against competition but to encourage people to invest in your organisation."

   But he pointed to other factors entering the equation.

   Mr Rankin, who is general manager and chief executive officer of
HongkongBank in Singapore, said the Republic was unique in that its major
banks were still  fairly domestic, and hence greater disclosure would carry
more weight for
these institutions.

   "I can understand the argument to some extent, purely because their base
and their strength is very domestic,"; he said.

   But no competitive edge could be lost by giving the public more information, 
for instance, in terms of risk profile, he said, adding: "If one bank says
that it has so much of its assets in this industry, I don't think that's
going to mean that every other bank in town is going to chase that industry!" 

   The poor disclosure policy of financial companies as a whole was
highlighted by Stock Exchange of Singapore (SES) chairman Chua Kim Yeow when
he served as the head of the main ARA committee last year