The SGX- ASX merger
The proposed SGX- ASX merger is widely reported in the mass media. The issue caused heated debates in both Singapore and Australia.
Temasek Holdings
Temasek Holdings is well known for its better- than- Warren- Buffett management. When it comes to honest mistakes, it is indeed better than Warren Buffett!
Commercial principles
During World Cup 2010, SingTel and StarHub have already shown that there is no such thing as commercial principles!
Human Right records
Singapore is probably the only country in the world that import huge number of foreign workers in order to depress wages and caused some of the Singaporeans to lose their jobs! As a result, there are ever increasing number of ‘Singapore Spirits’ along the MRT tracks!
Money laundering
Besides being an international financial centre, Singapore is also fast becoming a world renowned money laundering
hub!
Terrorism
To stage terrorist acts, the terrorists required money! The SGX- ASX conduit would prove to be very useful!
National interest
It is not in the national interest of Australia to support the SGX- ASX merger.
Proposal
I propose a merger between ASX and NZX.
The merger deal should include the following terms:
Equal number of Australian and NZ directors
Commitments to maintain operations, assets and key staff in NZ
Commitments to invest in, develop and introduce new products and services in NZ and Singapore
(Note: ideas borrowed from SGX)
For NZ, it will help to ensure it gains a foothold in Australia without starting from scratch. To start things from scratch is always difficult!
For Australia, this deal will help to bring the Aussie- NZ relations to new heights without sacrificing national interests, national security and its hard won reputation!
Before starting the merger, the Australian and NZ governments should take a stake in their respective stock exchanges! Doing this will ensure paper profits!
This is 1st part of the plan!
Malaysia, Indonesia & Thailand
These countries' stock exchanges can either choose to be with the winners or losers! If they choose to be with the losers, then it is just too bad!
SGX shareholders
Now, there are some questions that the SGX shareholders should be asking:
What is the total cost incurred?
How much of it is related to the loans that the SGX management has specially arrange for the SGX- ASX merger deal?
Why is the SGX management SOOOOOOOO confident that it will clinch the deal when the proposal is not even submitted to FIRB for review?
Does the SGX management assume that everything is on AUTOPILOT just because the ASX management expresses its EXTRAORDINARY support for the deal?
Now, is it HONEST MISTAKES, NEGLIENCE or SYSTEMIC FAILURES?
Conclusion
Australia should not allow the SGX- ASX merger to take place as Singapore has an extremely poor human right record! Besides that, the SGX- ASX merger threatens the national security and reputation of Australia through increasing probabilities of money laundering and terrorist attacks! It will also increase the costs for the Australian investors since the mistakes- honest or dishonest- will have to be paid for by someone!
If Australians reject the SGX- ASX merger, I will help to solve the ASX question!