Save the earth and stop giving me 0% p.a. cash!

For those of you who own credit cards like I do, you are definitely receiving leaflets and leaftlets from the banks, trying to lend you thousands of dollars to clear your credit card bills, month after month without fail.

Your monthly statement account could have been just one simple piece of A4 paper, but instead it always come in a thick parcel of discounts-of-the-month and 0%-p.a.-cash-give-away leaflets. As long as you own the credit card, you will have to live with throwing away these 0%-p.a.-cash-give-away leaflets every month.

But why should you ignore such great offers? It is 0% p.a. right? Which means you could loan thousands of dollars from the bank to pay your credit card bills and pay no interest for one whole year right? Alas, there is no free lunch in this world, especially not in Singapore. Let's take a look at what these three of the most popular banks in Singapore are offering...

• UOB
  "Simply transfer your outstanding balances from other banks' credit cards and/or credit lines to us during this festive season and enjoy an exclusive waiver of the 1% processing fee on top of a special interest rate of 2.88% p.a. for 6 months."
  Assuming a loan sum of $10,000, total interest payable for one year = $1,344, which is 13.44% of the loan. (Note that the interest rate of 2.88% p.a. is only applicable for 6 months. Which means that for every month that your loan is outstanding, you need to pay an interest rate of 24% p.a. Minimum transfer is $1,100)
  


• OCBC
  "Pick up our 0% p.a. cash Funds Transfer with a choice of 3, 6 or 9 months repayment tenures. You can even repay in a 12-month fixed instalment plan with our 0% p.a. CashWise."
  Assuming a loan sum of $10,000, processing fee for a 12-month Fixed Instalments at 6% and one-time processing fee for CashWise at 6%, total interest payable for one year = $1,200, which is 12% of the loan. (Note that the interest rate of 24% p.a. will apply for all outstanding amount from the monthly Fixed Instalments. Minimum transfer is $500)
  


• Standard Chartered
  "With our Funds Transfer at 0% p.a. interest for 24 months at just a nominal fee of 6.5% on the amount transferred, you can have everything your heart desires and more!"
  Assuming a loan sum of $10,000, processing fee for a 12-month tenor at 4%, total interest payable for one year = $400, which is 4% of the loan. (Note that the minimum transfer is $1,000)

Surprised that the "0% p.a. cash" that OCBC is shouting is not really what you had in mind? On top of that, the other trap is there waiting for you if you are unable to pay back the loan in one year. The 24% p.a. interest rate.

Judging from numbers, it appears that the foreign bank Standard Chartered is more sincere in offering you cash where you really have to pay a nett interest of 4% or 6.5% for an one year or two years loan respectively.

Regardless of how interesting these funds transfers are and how very enthusiastic the banks are to remind us of how they can help us to clear our credit cards bills with immediate loans, I still wish that there is an option on the return envelope that states "I do not wish to receive any more fund transfer leaflets" and I could draw a huge tick on the checkbox next to it.

Banks, save paper, save the earth. Save your breath.

credit card,0% p.a.,UOB,OCBC,Funds Transfer,Standard Chartered,interest rate

Michael Phelps, Mok Ying Ren, Dinah Chan... all suspended from competitions

While Michael Phelps was suspended for smoking from a bong...

Phelps suspended from competition, dropped by Kellogg
Source: CNN.com

(CNN) -- Olympic hero Michael Phelps was suspended from competitive swimming for three months on Thursday -- just hours after one of his sponsors announced it would not renew his contract after a photo surfaced of him smoking from a bong.

USA Swimming, the nation's governing body for competitive swimming, said it was withdrawing financial support for Phelps and barring him from competition during the period of his "reprimand."

"This is not a situation where any anti-doping rule was violated, but we decided to send a strong message to Michael because he disappointed so many people, particularly the hundreds of thousands of USA Swimming-member kids who look up to him as a role model and a hero," they said in a statement.

"Michael has voluntarily accepted this reprimand and has committed to earn back our trust," the statement continued.

Earlier Thursday, Kellogg Co. said it will not renew Phelps' advertising contract.

"Michael's most recent behavior is not consistent with the image of Kellogg," company spokeswoman Susanne Norwitz said. "His contract expires at the end of February, and we have made a decision not to extend his contract."

Norwitz said Kellogg's relationship with Phelps began with the company's support of the U.S. Olympic team. Kellogg did not renew its sponsorship of the team when it expired in December, she said.

Phelps admitted "regrettable behavior" on Sunday after a British newspaper published the photograph. The tabloid News of the World showed Phelps using the bong during what it said was a November party at the University of South Carolina in Columbia.

The Richland County, South Carolina, sheriff's office said Tuesday it was investigating whether Phelps smoked marijuana on the school campus, adding it would file criminal charges if it determined he did.

Both university police and Columbia, South Carolina, police said they would not pursue charges, according to The State newspaper in Columbia. It was unclear where the party took place, the paper said, or whether it was on campus.

On Thursday, before the decisions by USA Swimming and Kellogg were announced, Phelps told CNN affiliate WBAL that the incident was a result of "bad judgment."

"I can learn from it and try to make my life better than it has been in the past," he told WBAL.


Mok Ying Ren and Dinah Chan were suspended for being found in the same hotel room, though not in a compromising position...

Triathletes banned
Source: Straitstimes.com

SINGAPORE'S top male and top female triathletes have been slapped with a competition ban for being caught alone together in a hotel room at the Asian Beach Games in Bali last October.

Mr Mok Ying Ren, 20, and Miss Dinah Chan, 22, were told of their punishment late last week following an investigation into the incident by an inquiry panel, a Triathlon Association of Singapore (TAS) spokesman said yesterday.

Neither the spokesman nor the two triathletes wanted to reveal details of the ban or incident.

But the pair are believed to have infringed the TAS' code of conduct for athletes which forbids male and female athletes from sharing a room and requires the door to be kept open when there is a visitor of the opposite gender.

Although the duration of the ban is unknown, it is unlikely that the duo would be prevented from competing at the major races this year - the first of which will be the March 27-29 Mekong River ITU Triathlon Asian Cup in Thailand.

Mr Mok, a National University of Singapore medical student and the reigning South-east Asia Games men's champion, would only say: 'We are very happy with the investigation carried out by the TAS and its outcome.

'We would like to put the issue behind us and move forward. Personally, I would like to focus on my training and medical studies, which are more important right now, and not be distracted by this.'

The pair were the only two triathletes among 37 Singapore athletes at the inaugural 17sport Asian Beach Games, and were accompanied by team manager David Hoong and national coach Guo Weidong.

Mr Mok finished the race - including a 1.5km swim, 40km cycle and 10km run - 12th out of 35 competitors while Miss Chan was ninth out of 15.

The athletes had arrived on Oct 24 and were staying in separate rooms at the Mercure Resort Sanur hotel near Mertasari Beach, the venue of their Oct 26 event.

Sources said that Miss Chan, a National Institute of Education post-graduate student, feared for her safety - the athletes had allegedly been informed of bomb threats - and could not sleep well on the first night. So she went to Mr Mok's room, which was in another block.

The duo - widely speculated in the triathlon fraternity to be dating - are believed to have been caught, although not in a compromising position, when Mr Guo visited the room that night.

Subsequently, the TAS launched an investigation with an inquiry panel consisting of three members - one each from the Singapore Sports Council (SSC), TAS and another national sports association (NSA).

Mr Mahipal Singh, Singapore's chef-de-mission at the Games, said there was no specific rule pertaining to the Games that athletes of the opposite sex could not be in the same room.

However, Mr Singh, who is also SSC's assistant director of coaching development, added that athletes are expected to 'uphold good behaviour and the image of Singapore'.

A check with a number of NSAs showed codes of conduct similar to that of the TAS - even if the athletes are dating or married.

Michael Phelps,suspended,USA Swimming,Kellogg,Mok Ying Ren,Dinah Chan,Triathlon Association of Singapore,TAS,Singapore Sports Council,SSC,NSA

Bloggers, website proprietors and all netizens should behave themselves on the net!

INT.OFFICE - MR TEO'S CUBICLE - LATE AFTERNOON

Ah Tan knocked before he walked into Mr Teo's cubicle. Mr Teo was in the midst of a conversation with Ah Lui who was seated in front of his desk.

AH TAN: Sorry Sir, maybe I'll come back later.
MR TEO (gestering to the empty seat next to Ah Lui): No it's okay. I was about to ask Susan to go get you.

Ah Tan took the seat next to Ah Lui. He could see little droplets of perspiration forming on Ah Lui's forehead. Apparently a heated discussion was going on.

MR TEO: Have you surfed the net lately?
AH TAN (gasping): Er... the net... no, no Sir, what ever you've heard is not true! I don't surf net during office hours!
MR TEO: No, no, no... what I meant is... ah... Lui, why don't you brief Tan.
AH LUI: What's happening is that, after Seng was set on fire by that foolish ex-cabbie, people have been talking about that incident on forums, and alarmingly, majority of these people are leaving dreadful comments.
AH TAN: Geez! How unkind! What did they write?
AH LUI (sighing): Mainly on who are next on the list that should be burnt, and some even commented that Seng was not burnt badly enough.
AH TAN (drawing a breathe): And we're on the list?
AH LUI: Luckily, no.
AH TAN: What's wrong with these people? How can they treat us this way after all the good we've done for them?
MR TEO: It is a known fact that there are ungrateful people out there, lots of them, who are unappreciative for all the good we've done for them. But this is way overboard.

Both Ah Tan and Ah Lui nodded simultaneously.

MR TEO: We need to stop these people from being so arrogant. We need to take control of these people and make sure they behave themselves on the net!
AH LUI: Yes Sir, the internet is not an effective self-regulated regime. This is one place where we are unable to control how our people should behave! Look at the comments that were written on Seng's incident! Significant numbers of writings were unkind. A small number was downright outrageous. It's disappointing!
AH TAN (grunting): Ungrateful harebrained people!
AH LUI: And worse still, the rest of the internet community had not done enough to rebut some of these unhelpful comments delivered by fellow netizens! I mean... why isn't there any righteous one to speak up?
MR TEO: It's expected. Singaporeans are either too tamed, or most of the time, they simply don't care.

Both Ah Tan and Ah Lui sighed and shook their heads disgruntledly.

AH LUI: It is a squandered opportunity for a higher degree of self-regulation. It would have been an example of the genesis of the first step towards a more responsible, a greater self-regulatory regime. But many of those responses were not rebutted nor answered. And I think it is not healthy for some of those to remain on the net unchallenged, unquestioned, and unanswered.
AH TAN: Of course not!
AH LUI: Singapore need to develop a responsible cyberspace. Bloggers and website proprietors need to maintain credibility, while netizens should do more to establish and enforce the norms of acceptable online behaviour.
MR TEO: This is where we come into the picture.

Ah Lui paused and anticipated Mr Teo's profound suggestion.

MR TEO: We need to take control of Singapore's cyberspace. We need to know what are these people writing and we need to make sure that they are writing the right things. And Tan, that is why I need you here. Your previous suggestion of that association of bloggers was brilliant. I need you to join us here to brainstorm on how we can control Singapore's netizens.

Ah Tan looked down and entered into deep thought momentarily.

AH TAN (looking up): We need to work with the ISPs. We need to come up with a list of undesirable sites and hand it over to the ISPs and request them to block Singaporeans from these sites.
AH LUI: Good idea! Should we add to the list websites that support the opposition parties?
MR TEO: Lui, good suggestion, but that'll be too obvious! It'll be... politically incorrect.
AH LUI: Yes Sir...
MR TEO (looking at Ah Tan): Tan, that's a really good suggestion and I think we should implement it almost immediately. However there are still so many anti-government threads in forums all over the place, and it is just not feasible to block all of these forums.
AH LUI: Yes those forums! The comments found in the forums are far worse than what some bloggers write!
AH TAN: Hmm... how about we create a registry? Any Singaporen that wishes to start an online forum must be registered with the registry of say... Registry of Singaporean Forums.
AH LUI (punching left fist in air): Way to go!

Ah Tan gasped from the sudden excitement from Ah Lui.

MR TEO: But I think we should do more than this. We need the people to understand why we are controlling the cyberspace. We need them to know that it is for their own good. We need to educate them on the correct online behaviour.
AH TAN: Why don't we start a campaign? Say a... Behave Online Singapore! campaign? Maybe we can start a special committee for this? Print some posters to publicise correct online behaviour, give free courses on how to be a responsible and mature Singaporean netizen, and perhaps even request the TV station to write a drama on blogging the right way!
MR TEO (pounding the table): Yes! This is what I'm talking about!

Senior Minister of State for Information, Communications and the Arts,MICA,Lui Tuck Yew,Singapore Parliament,cybertalk,Singapore netizens,Singapore internet community,self-regulation,cyberspace,acceptable online behaviour,Singapore bloggers

Procreation is not our forte, which is why we shall work more than five days a week!

INT.OFFICE - MEETING ROOM PRODUCTIVITY - AFTERNOON

Mr Teo held the door wide open as Dr Loo cruised in with his nose in the air. Ah Tan, Ali, Ah Lim and ten other senior managers rose to their feet to welcome the VIP. Susan handed the wireless microphone over to Mr Teo as the two walked to the front.

MR TEO (clearing his throat): Gentlemen, please be seated.

Discreetly and taking care not to make too much noise, the senior managers sat down slowly.

MR TEO: We're very honoured to have Dr Loo here with us. I'm very sure all of you know Dr Loo is the twenty-sixth richest in Singapore. Today, Dr Loo will share with us his ingenious idea of how Singapore can improve the productivity of its workforce. Let's give Dr Loo a warm welcome!

With Mr Teo leading the pack, the senior managers shook the room with thunderous applause. Proudly, Dr Loo took over the microphone to address the audience.

DR LOO: Thank you! Thank you, Teo. Good afternoon, gentlemen. Today I'm here to tell you what is our problem and how we should solve it.
ALI (whispering to Ah Tan): What is our problem again? What is this talk all about again?
AH TAN (whispering to Ali): That our population is too small and we've got too little people working lah!

DR LOO: Everybody knows that our government is concerned about the baby shortage that threatens the city-state's future. Worried that as the population gets older, we do not have adequate young people to support the aged group. So much so that the government would double spending on incentives to encourage Singaporeans to produce more babies. But we have still failed to significantly raise the number of children.

AH LIM (whispering to Ah Tan): That's why we bring in those foreign talents right?
AH TAN (whispering to Ah Lim): But we can't bring in too many of them right? Or else the people will start complaining again, about how those foreign talents are stealing their jobs.

DR LOO: Do you know what is the reason for this failure? Our procreation talent is not our forte! It is as simple as that! Nothing to crow about! We should accept that as a people, we are just not good in producing babies! Nothing is wrong with that!

ALI (whispering to AH TAN and AH LIM): Did he just say we're bad at sex?
AH TAN and AH LIM (together): Shh...

DR LOO: While failing to boost the population, working only five days a week may also have affected Singapore's work ethic. I'm not kidding. We need to determine whether our productivity and competitiveness have been affected by the five-day week.

AH TAN (muttering to himself): Oh no... don't tell me...
AH LIM (whispering to AH TAN and ALI): Oui! Don't tell me he's suggesting that we go back to working five and a half days hor!

DR LOO: Apparently Singaporeans are not making full use of their rest days to do what they are obliged to do. Make babies! In that case, they could make better use of their rest days doing some work!

AH TAN (muttering to himself): Oh gosh...
ALI: Ah doi!

Dr Loo looked over to Ali's direction.

DR LOO: Sorry, do you have something to share?
ALI: Ah... sorry Sir, no Sir, I was... er... burping.
DR LOO: Ah... haha... it's okay. Oh... yes, as I was saying, Singaporeans shall wake up and start working. I have nothing against our young Singaporeans having fun and partying. But I hope they will work as hard as they play. Our government should enforce that our people work six days a week. Not five days, not even five and a half. Half day's work is a waste of time. Imagine that you come into the office at 8am, but by noon, you are already leaving the office. That is only a total of four hours work for the day! That is unacceptable!

AH LIM (whispering to Ah Tan): He forgot to factor in the 8:30am breakfast and 10am tea break.

DR LOO: At times like this, with the economic downturn worsening, Singaporeans need to work even harder! Just by being more hardworking, we could boost our productivity level and in turn convince our forign investors to stay, or better still, attract even more investors! Without delay, I'll be suggesting this in parliament next week. A law should be enforced to ensure that all Singaporeans work six full days a week!

AH TAN (whispering to Ah Lim and Ali): Don't worry, I'll talk to Mr Teo later. If they're going to pass this bill, it should only apply to the common people. Not us...

Procreation not our forte,Loo Choon Yong,baby shortage,five-day week

Will Coral Secondary principal be sued for human rights violation? Not a chance in Singapore

Coral Secondary School is allegedly one of the strictest school in Singapore. It forbids any student in uniform from entering the nearby White Sands shopping mall in Pasir Ris. On top of that, it also forbids students in uniform from hanging out at the neighbouring housing estate. Not even dropping by the mini-mart to get a drink.

The exception - the community library in White Sands Shopping Mall. However the student is required to go through the process of seeking approval from HOD/Student Management, Operations Manager, Vice-Principal or Principal.

When asked by the press to comment on the rule, principal Veronica Ng responded: 'Coral Secondary places much emphasis on inculcating in our students good habits like using time prudently. As such, it is in their interest not to loiter in the malls after school.'

Where there are rules, there are always enforcers. To prove that they are really serious about it, the school assigns teachers to patrol the shopping mall and neighbouring areas after school. Any offenders caught will be sent for a two-hour detention.

Some may condemn the school for human rights violations. But alas, this is Singapore! Without a doubt, this is a definite law case in U.S., but here in Singapore, the principal is only learning from the government. The government seems to believe that the most efficient way to govern a country is by creating laws. Just tell the people how they will be punished if they attempt to do/not do some actions. It is not necessary to educate them on the why...

• Thou shalt flush the toilet after using it. Random checks are regularly conducted by the authority. Here is why for the saying "Look behind your back while you pee" in Singapore.


• Thou shalt not perform oral sex unless it is part of foreplay leading to full sex. How will the authority gets to know about this, is something I could never figure out.


• Thou shalt not possess all kinds of pornographic materials, not even for personal usage. The government appears to believe that sex should only be performed in order to produce babies, and that if you love your partner, there is no necessity for such materials. Unquestionably then, possession of pornographic materials for the purpose of masturbation is a no-no. No matter, our protective government has decided that pornographic materials are bad for decent Singaporeans, and thus should not be found on the island.


• Thou shalt not participate in any illegal gathering when the clock strikes ten. At any time after 10pm, police officers is authorised to patrol the streets to check on any group with more than two people. Regardless whether you are 18, 28, 38 or 48 years old, you must be up to no good gathering after 10pm.

Back to the school. Is that really a perfect ban? Will this ban truly ensure that the students are using their time prudently? Could the students not log into their computers and play online games with their friends in the comfort of their homes?

On top of that, where there are rules, there are always loopholes. And where there are loopholes, there are always more rules to be broken...

• Student A brings along a light set of civilian clothing in his/her school bag. If a teacher spots him/her entering a toilet in uniform but exiting in civilian clothing, can he/her be penalised? Notice that the student is no longer in school uniform. Will the rule still stand?


• Student B gets an approval to visit the community library but he/she then gives, or worse, sells the approval to Student C. Student C gets into the community library and quickly borrows a couple of books before proceeding to the fastfood restaurant. Can the teacher then penalise Student C for grabbing a bite after going to the library?


• Student D is caught in the mall by a patroling teacher, but after the two-hour detention penalise has been given to him/her, if he/she decided to stay in the mall, will double jeopardy then forbids the teacher from further penalising him/her?

For the school to set such a ban is a double-edged sword. While some students may stay "good" because the opportunity to stray has been removed from them, the ban may also be a good training ground for some students to learn how to think outside the box to outsmart the law.

Coral Secondary School,White Sands,Veronica Ng,student in uniform,ban from shopping mall,Pasir Ris

Why is it so difficult to raise fund for the Kallang Sports Hub? It's only S$1.2 billion!

INT.OFFICE - MEETING ROOM PERSEVERANCE - MORNING

Ah Tan and Ali were seated at the long meeting table with Mr Teo as the chairperson. Mr Teo squeezed his eyebrows as he flipped through the few pieces of papers in his hands. He let out a devastated sigh before speaking.

MR TEO: Gentlemen, this is bad. The Kallang Sports Hub project is giong to be delayed. Apparently, the consortium constructing the Kallang Sports Hub is having difficulty raising the necessary funds to even start the project.
ALI: Alamak! So that means we are definitely not going to complete the project by 2010?
MR TEO (sighed) : I'm afraid not. The earliest completion date is now set to 2012.
AH TAN: Earliest? Which means that it could even be later than 2012?
MR TEO: I will not rule out that possibility. Guess we were really biting more than we can chew when we had decided to build a S$1.2 billion sports complex.
ALI: I beg to defer. How can S$1.2 billion be too much to spend on a sports hub? We are spending S$2.5 billion to build the Marina Coastal Expressway for crying out loud! That is just a stretch of road! You can't watch the Singapore Lions winning the Malaysia Cup on that stretch of road!
AH TAN (nodding): True, true... Furthermore, no matter how many ERP gantries we place on the expressway, it just can't beat the revenue we could generate from the sports events that will take place in the new stadium.
MR TEO: I won't bet on your first comment, because that will have to depend on how many gantries we are going to build and how much we are going to charge. If our proposal to place one 24-hours operating gantry in every 1km and ten dollars gantry fee managed to pass through, that could be a very promising source of revenue.
ALI: Yap! And we could then recover the building cost for MCE in a breeze, and maybe we could even restore our pay cuts!
AH TAN: Sweet!
MR TEO: But back to the topic... Ah Tan, you're right that we're looking at a monstrous loss because of the stadium completion delay. In particular if we can't make it in time to host the Youth Olympics games in 2010!
ALI: But we could still host the games in the old National Stadium right? Anyway we're not planning to demolish it any time soon... Especailly when we still can't find that 1970 time capsule...
AH TAN and MR TEO (shouting together): Don't you dare go there!
MR TEO: Please! Don't ever mention that time capsule again when we're praying so hard that Singaporeans will forget all about it as time goes by!
ALI: Sorry Sir...

All three men paused to think for a moment.

AH TAN: How about we forget about that 6,000-capacity indoor aquatic centre and artificial river offering whitewater rafting? That could save us some cost. I mean, look at it this way... don't you think these two facilities are kind of unnecessary? Instead of building an indoor aquatic centre, we could build an outdoor one, which will definitely cost less! And why build an artificial river when we've got the Kallang canal?
MR TEO (clearing his throat): Erm... are you suggesting that our tourists should do their whitewater rafting in a canal?
AH TAN: Oh... sorry Sir...
MR TEO: And we do need an indoor aquatic centre and in particularly one with air-conditioning! Tell me, Ah Tan, do you have kids?
AH TAN: Er... yes Sir. One boy, five years old this year.
MR TEO: I'm pretty sure he's taking swimming lessons in some swimming pools right?
AH TAN: Yes, he's currently taking swimming lessons at the Singapore Swimming Club.
MR TEO: Don't you find it agonizing to watch him swimming under the hot sun? And aren't you tormented to have to sit around waiting for his lesson to finish each time, having to perspire under the Singapore heat even though you're already under shade?
AH TAN: Ahh! That's really excruciating! That's why most of the time I'll just ask my maid to bring him there!
MR TEO: So you see... we really truly needs an indoor aquatic centre! One with air-conditioning!
ALI (grinning): So can I assume that new dome-shaped national stadium with retractable roof is also going to be built with full air-conditioning?

Kallang Sports Hub,Sports Hub project,National Stadium,indoor aquatic centre,artificial river

Singapore Finance Minister Tharman Shanmugaratnam's interview with Bloomberg Television

Singapore, Investor in UBS, Citigroup, Says Worst Yet to Come
By Shamim Adam and Haslinda Amin
Source: Bloomberg.com

Jan. 29 (Bloomberg) -- Singapore, whose state-owned funds invested about $24 billion in UBS AG, Citigroup Inc. and Merrill Lynch & Co. in the past 14 months, said the worst of the credit crunch is yet to come.

The world’s biggest banks still have toxic assets on their balance sheets, which are clogging up their ability to lend, Singapore Finance Minister Tharman Shanmugaratnam said in an interview with Bloomberg Television yesterday. The finance ministry oversees Government of Singapore Investment Corp. and Temasek Holdings Pte, each managing more than $100 billion.

Banks are still focusing on replenishing capital “and estimates of the extent of bad assets on their books are still on the upswing,” he said. “We haven’t seen the worst yet.”

Bank losses worldwide from U.S.-originated bad assets may reach $2.2 trillion, the International Monetary Fund said yesterday, more than the $1.4 trillion it predicted in October. U.S. President Barack Obama’s administration and federal regulators are considering setting up a “bad bank” that would absorb illiquid assets from otherwise healthy financial firms.

Governments across Europe have injected capital into banks to ensure that lending to companies and consumers doesn’t freeze up. European Union regulators yesterday approved France’s plan to increase its funding for recapitalization of banks including BNP Paribas SA and Societe Generale SA to 11 billion euros ($14.5 billion), from an initial proposal for 10.5 billion euros.

Ireland’s government last month said it would invest 2 billion euros in Allied Irish and Bank of Ireland, the country’s biggest lenders.

‘Foot the Bill’

“It’s right that governments are focusing on recapitalization in the West and they’re trying their best to incentivize new lending,” Shanmugaratnam said. “It’s too early to say how successful this will be. Governments have to take more risk, and that means taxpayers have to be willing to foot part of the bill.”

The IMF report released yesterday signaled that writedowns and losses at banks totaling $1.1 trillion so far are only half of what’s to come. Losses on that scale would leave banks needing at least $500 billion in fresh capital to restore confidence in their balance sheets, the fund said.

Singapore’s leaders have defended the performance of the city’s state-owned investment companies after a plunge in the value of their stakes in Citigroup, Merrill Lynch and other global banks.

GIC, which manages the country’s reserves, invested about $18 billion in UBS and Citigroup since December 2007. Temasek, which has a $130 billion portfolio, increased investments in Merrill Lynch and Barclays Plc as the credit market collapsed in 2007 and 2008.

‘Well Diversified’

Temasek was the biggest shareholder in Merrill Lynch before the securities firm was taken over by Bank of America Corp. It is also the largest shareholder of banks including London-based Standard Chartered Plc and Singapore’s DBS Group Holdings Ltd., and has holdings in India’s ICICI Bank and other lenders in Indonesia, South Korea and Pakistan.

Temasek and GIC remain “well diversified” enough in their portfolios to offer the long-term returns the government seeks, Shanmugaratnam said.

“We would be very worried if global banks comprise a large proportion of the portfolios of GIC or Temasek, or for that matter, any of the highly vulnerable industries globally,” the minister said. “But these are diversified portfolios.”

Performed ‘Credibly’

Temasek and GIC have performed “credibly by international standards,” he said. Temasek had an average 18 percent annual return on investment since its inception in 1974. GIC said in September that annual returns in the past 20 years averaged 7.8 percent in U.S. dollar terms, compared with about 6 percent for the MSCI World Index.

GIC last year also said it’s boosting investments in emerging markets, private equity and other asset classes to raise returns after cutting back stocks and holdings in developed nations.

“I’m comfortable with the actions both Temasek and GIC have taken early in this crisis to reduce risk, to move into more liquid asset allocation and to prepare for opportunities in this downturn,” Shanmugaratnam said. “We’ve got to make sure we maintain that record of prudent investments for the portfolio as a whole, diversifying risks, and being prepared for crises from time to time.”

Singapore Finance Minister,Tharman Shanmugaratnam,Bloomberg Television interview,UBS,Citigroup,Merrill Lynch,Government of Singapore Investment Corp,GIC,Temasek Holdings