THE STRIFE OVER PAN EL
The collapse of Pan Electric Industries (Pan El) spells the end of
a long and profitable partnership between the Singapore and Malaysian
stock exchanges. Despite being distinct and separate from each other,
they've been viewed by foreign investors almost as one. The
collapse of Pan El has brought to a head the different regulatory
policies of the two governments.
For Singapore, it means the end of self-regulation, as the market
evolves towards a system of even more official intervention in the
securities industry. Ironically, before the closure of the market, the
brokers and other segments of the financial community were working
towards a more liberal market in which banks and other investors would
be allowed to buy into brokerage firms.
Events have been speeded up since the monetary authorities took
control of the market. This year foreign as well as local financial
institutions will...
