Developing sustainable funding for SIAS - the sooner, the better

THE chief patron of the Securities Investors Association Singapore (SIAS), Tony Tan, last month spoke of the need for SIAS to develop a sustainable funding model so as to ensure the association's continued existence and to address criticism over its effectiveness.

A few weeks later, the Monetary Authority of Singapore (MAS) announced that it is working closely with SIAS to develop such a model. Dr Tan's observation was timely, coming as it did on the 20th anniversary of SIAS's formation in 1999 to represent some 172,000 investors left stranded when the Malaysian government imposed capital controls in the wake of the Asian financial crisis - curbs that eventually led to the collapse of Malaysian shares traded over-the-counter on a segment of the local market known as Clob International. Similarly, MAS's announcement should also be welcomed by all in the investment community, given that a strong, independent and properly-funded SIAS is essential for the well-being of the local market.

Indeed, in the wake of the Clob crisis in 2000, SIAS expanded its efforts into investor education and championing minority rights - two areas then lacking in the local market at the time. In both SIAS has achieved notable results, cementing its position as a key player in the local financial literacy and corporate governance landscapes.