http://www.straitstimes.com/ST%2BForum/Story/STIStory_307666.html
The town councils' maintenance of sinking funds is clearly necessary as Dr. Teo spelled out in his letter. Sinking funds help finance major restorative works in the estates among other uses. And I wholly agree that any surpluses in the funds clearly should be invested in appropriate instruments to maximize their use. That the funds suffered losses is unfortunate but I am confident that the town councils did their best to make sure the money is well invested.
However, why sinking funds are needed or how the funds are invested, are not the right questions. The correct question that should be directed to the Town Council is, why do the town councils need to draw more conservancy charges from the residents, when there is enough excess that it could even be used for investment purposes? Or perhaps could the charges be reduced when clearly they are actually producing surpluses?
I am confident that Singaporeans are generally mature and cognizant of the need to maintain reserves, and that these investment losses are unfortunate. However, the level of the reserves is the real question.
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