Business

‘Boardroom Knockout’: How Singapore’s investor watchdog fights for minority shareholders

Published

2 years ago

2024/09/26

President Tharman Shanmugaratnam with David Gerald, Founder, President and CEO of SIAS and SIAS Honorary Chairman Daniel Teo at the launch of the book, ‘Boardroom Knockout: How Singapore's Investor Watchdog Fights for Minority Shareholders’

By Ifham Nizam

The story of David Gerald and the work he has done for minority investors has been nothing short of extraordinary. Here is a man who had no experience in investing, or in stock markets, but was willing to risk his reputation to stand up against the Malaysian government, internationally known author, Aaron Low said. The author of a landmark book titled, ‘Boardroom Knockout’, featuring share market issues, Low spoke to The Island Financial Review recently in an exclusive interview.

Extracts from the interview:

Q: What inspired you to tell the story of David Gerald’s early experiences centering on injustice in Ceylon and on how they shaped his career and mission?

A: The reason why he did so is simple: justice. When the Malaysian government shut down the Central Limit Order, a system that facilitated the trading of Malaysian shares by Singaporean investors, more than 172,000 investors in Singapore found their funds locked up and frozen in a foreign land. The total? More than S$7 billion.

I asked him why he would even contemplate such a move. After all, he was already in his 50s and approaching what would be the prime of his career as a litigator. He told me that he has always been inspired by a sense of justice. When he was a boy growing up in Ceylon, he saw a group of soldiers brutally assaulting a young man, who was also deaf and mute. Shocked, Gerald wanted to do something for the youth but was frozen by fear. That, he said, was a turning point and he swore he would not let anyone down again – even if that meant taking on a foreign government.

Q: How did David Gerald’s legal work under Singapore’s celebrated criminal lawyer, David Marshall, influence his later advocacy for small investors?

A: If the incident with the youth in Ceylon sparked his desire to pursue justice, his work with David Marshall brought the fight for justice to life. Marshall was Gerald’s mentor and the epitome of what it was to be a criminal justice lawyer. His passion for legal work and commitment to his clients inspired Gerald to do the same.

You can see this in the work he does at SIAS – all of it is geared towards helping the mom and pop investors, who are not the most sophisticated of stock market players.

Q: The founding of SIAS in 1999 was a pivotal moment for small investors in Singapore. What were the biggest challenges SIAS faced when tackling the CLOB issue with Malaysia?

A: The biggest issue that SIAS faced was that they couldn’t even get the Malaysian government to engage them! I mean, it’s not surprising right? Why would the federal government of Malaysia want to even pay attention to a small group of amateurs?

So the first thing that SIAS needed to do was to get recognition that it was a serious player that represented the aggrieved investors. Gerald knew this, which was why one of the first things he did was to get thousands of people to sign up as SIAS investors.

The second big challenge was that the issue was toxic cocktail of tense history between Singapore and Malaysia as well as anti-foreigner sentiments, in the aftermath of the Asian Financial Crisis.

Q: Could you elaborate on SIAS’s approach to resolving corporate governance issues, especially its preference for negotiation over litigation?

A: SIAS has become such an important institution in Singapore’s corporate landscape. Let me put it this way: Asians hate public confrontation. Losing face is as bad as losing money – and in an ugly public fight, chances are both parties will lose both.

Instead, perhaps inspired by consultative communalism, SIAS has decided to go with a “let’s talk about it” approach. Part of the reason why it did so was simply the recognition that SIAS was never going to be so well-resourced to take on corporations that had hundreds of millions of dollars in its bank accounts to fight off lawsuits.

Another, and arguably, more important reason, is that seeking consensus has the highest probability of achieving something when nothing else works. The truth is that angry minority investors turning up at corporate annual general meetings is a common sight. But it is also common that these same investors hardly get anything for their troubles, except maybe that they feel good for a few minutes venting their frustrations in the open.

SIAS prefers to work with companies behind closed doors, over tea and not threats, to resolve issues amicably. SIAS can do so because it carries the weight of thousands of minority shareholders with them; companies also much prefer talking to a rational party rather than emotional angry individuals. This way, the hope is that a compromise may be met. Maybe the company won’t pay the book value of $10 for a company but it is willing to up its price to $7.50 from $5 if SIAS can broker a deal with investors.

I think corporates like to deal with them, while minority investors trust SIAS. This balance is not an easy one to achieve and it took SIAS many years before it could find its equilibrium.

Q: What lessons can today’s corporate leaders and investors learn from SIAS’s unique approach to resolving conflicts outside courtrooms?

A: That life is nothing but a series of compromises because we are all deeply flawed in one way or another. No one is perfect and even good people do bad things in a time of weakness and temptation.

So instead of judging, approach each situation with empathy, honesty and truth. It’s a high ideal but sometimes laying all your chips on the table is the best way to resolve the worst of conflicts.

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Business

NSB Group delivers Rs.22.5bn operating profit in 1H 2026 as lending and core income strengthen

Published

8 hours ago

2026/09/1

Sahan Weerasooriya

Dr. Harsha Cabral / Rohana Bandara Weerakoon

National Savings Bank Group (NSB) recorded resilient core banking performance during the first six months of 2026, supported by stronger net interest income, a notable expansion in fee-based earnings and continued growth in loans and advances. The results demonstrate the Bank’s capacity to maintain business momentum while navigating cost pressures and volatility in market-related income.

The Bank reported total operating income of Rs. 45.8 billion for the period, an increase of 3.1% compared with Rs. 44.5 billion in the corresponding period of 2025. Net operating income increased by 2.3% to Rs. 49.1 billion from Rs. 48 billion reported a year ago, providing a stable foundation for the Bank’s operations and customer-focused growth agenda.

Net interest income rose by 5.5% year-on-year to Rs. 44.2 billion, compared with Rs. 41.9 billion in the first half of 2025. This improvement was supported by a 4.7% reduction in interest expenses to Rs. 54.5 billion, despite a marginal moderation in interest income to Rs. 98.6 billion. The result reflects disciplined balance-sheet management and the Bank’s continued focus on maintaining a sustainable funding and asset mix.

The Bank also achieved substantial growth in fee-based earnings. Net fee and commission income increased by 37.0% to Rs. 1.40 billion, from Rs. 1.02 billion a year earlier. The increase underlines the growing contribution from transaction-led services and the Bank’s ongoing efforts to broaden non-interest revenue through customer-centric and digitally enabled banking solutions.

Profit before Tax (PBT) amounted to Rs. 22.6 billion, compared with Rs. 24.1 billion in the first half of 2025, while profit after tax stood at Rs. 13.4 billion, compared with Rs. 14.7 billion. The moderation in profitability principally reflected higher operating costs and the lower contribution from trading and derecognition gains. Personnel expenses increased to Rs. 13.8 billion from Rs. 11.5 billion, while other operating expenses rose to Rs. 4.3 billion from Rs. 4.1 billion.

Despite these pressures, the Bank preserved a substantial earnings base and continued to invest in the people, systems and service capabilities required to improve operational resilience and the customer experience. Income tax for the period amounted to Rs. 9.14 billion, while VAT and the Social Security Contribution Levy on financial services together exceeded Rs. 7.29 billion. In addition, the Bank declared a dividend of Rs. 7.4 billion to the Government as its sole shareholder. Accordingly, NSB’s total contribution to the Government through dividends, taxes and levies amounted to Rs. 23.8 billion, underscoring the Bank’s significant contribution to public finances and national development.

Commenting on the results, National Savings Bank Chairman Dr. Harsha Cabral PC said: “The first-half results reflect the resilience of NSB’s core business model and the enduring confidence placed in the Bank by generations of Sri Lankans. Our priority remains the prudent stewardship of public savings while supporting productive economic activity, financial inclusion and sustainable national development.”

NSB’s total assets increased by 2.1% during the first six months of the year to Rs. 1.87 trillion, from Rs. 1.83 trillion at end-December 2025. Loans and advances recorded a strong 9.1% expansion to Rs. 601.01 billion from Rs. 550.83 billion, demonstrating the Bank’s continued support for the financing needs of individuals, households and eligible institutional customers within its mandate.

Deposits, the principal source of funding for NSB, increased by 1.5% to Rs. 1.63 trillion from Rs. 1.61 trillion. The sustained growth in the deposit base reflects continued public confidence in the Bank and provides a stable platform for its savings-led business model. The Bank’s financial position remained sound, with total shareholders’ equity increasing by 4.1% to Rs. 123.91 billion from Rs. 119.05 billion. Retained earnings rose by 12.4% to Rs. 52.34 billion, further strengthening the Bank’s capacity to support future growth and absorb potential shocks.

Acting General Manager/CEO of National Savings Bank, Mr. Rohana Bandara Weerakoon, said: “Our focus is on translating the Bank’s trusted savings franchise into sustainable customer value. The growth achieved in lending, fee income and shareholder’s equity is encouraging. We will continue to strengthen digital access, service quality, cost discipline and risk management while delivering on NSB’s national mandate.”

The Bank’s profitability indicators continued to reflect the strength of its core banking activities, although higher operating expenses moderated overall returns. The net interest margin improved to 4.81% from 4.74% at the end of 2025, demonstrating an improvement in the Bank’s core interest spread. Return on assets before tax remained broadly stable at 2.46%, compared with 2.48%, while return on equity stood at 22.30%, compared with 25.08% at the end of 2025.

Asset quality improved during the first half of 2026. The net Stage 3 loans ratio declined to 2.05% from 2.52% at the end of 2025, indicating a reduction in net impaired credit exposures relative to the loan portfolio. At the same time, the Stage 3 impairment coverage ratio strengthened to 59.77% from 58.54%, reflecting improved impairment coverage against Stage 3 loans.

NSB maintained capital buffers comfortably above the applicable regulatory minimum requirements. The Tier 1 capital ratio stood at 19.72%, compared with the regulatory minimum of 8.5%, while the total capital ratio stood at 21.1%, well above the minimum requirement of 12.5%. These ratios demonstrate the Bank’s capacity to absorb potential risks while supporting continued business growth.

The Bank also maintained a strong liquidity and stable funding position. The all-currency liquidity coverage ratio stood at 311.88%, substantially above the statutory minimum of 100%, reflecting the availability of sufficient high-quality liquid assets to meet short-term liquidity requirements. The net stable funding ratio stood at 196.17%, also comfortably above the regulatory minimum of 100%, demonstrating the stability of the Bank’s longer-term funding profile.

Business

Petrol price reduction boosts ASPI

Published

8 hours ago

2026/09/1

Sahan Weerasooriya

By Hiran H. Senewiratne

CSE data indicated yesterday that the benchmark All Share Price Index moved up 0.11 percent mainly due to the petrol price reduction among some categories of fuel, market analysts opined.

Despite the lingering tensions in West Asia the market performed well.

The ASPI was up 22.93 points at 21,338.84, while the more liquid S&P SL20 was up 0.22 percent, or 13.03 points, at 6,018.37.

Market turnover was Rs 1.014 billion. Capital goods led turnover with Rs 300.64 million. During the day two crossings took place. Those crossings were reported in Access Engineering 1 million shares crossed to the tune of Rs 75 million and its shares traded at Rs 75 and Sierra Cables 850,000 shares crossed for Rs 31 million; its shares traded at Rs 36.70.

In the retail market, companies that mainly contributed to the turnover were; Sierra Cables Rs 77 million (2 million shares traded), Brown’s Investments Rs 68 million (13.3 million shares traded), CCS Rs 60 million (494,000 shares traded), Citizens Development Bank Rs 30 million (866,000 shares traded), Overseas Realty Rs 27 million (513,000 shares traded), Sampath Bank Rs 26 million (185,000 shares traded) and Commercial Credit and Finance Rs 24 million (217,000 shares traded). During the day 51 million share volumes changed hands in 15669 transactions.

Positive contributors to the ASPI were; Browns Investments (up 8.16 percent at Rs 5.30 ), Carson Cumberbatch (up 4.13 percent at Rs 749.50 ), Windforce (up 4.63 percent at Rs 40.70 ), JKH (up 0.51 percent at Rs 19.90 ) and DFCC Bank (up 0.99 percent at Rs 128.00 ).

Vallibel One (down 2.64 percent at Rs 88.50 ), Melstacorp (down 0.52 percent at Rs 190.00 ), and Hatton National Bank (down 0.33 percent at Rs 380.25 ) were top negative contributors.

Ceylon Land & Equity announced a proposed first and final scrip dividend of Rs 0.043 per ordinary share for the financial year ended March 31, 2026, subject to shareholder approval at its Annual General Meeting on September 23, 2026.

The dividend involves capitalizing Rs 39.61 million to issue 4,553,230 new ordinary shares at a consideration of Rs 8.70 per share, in the proportion of 1 new share for every 202.33 existing shares.

Shares of Ceylon Land & Equity closed down 1.16 percent at Rs 8.50.

Maharaja Foods announced a final scrip dividend of Rs 0.10 per ordinary share for the financial year ended March 31.

Following a 15 percent withholding tax deduction, the net dividend entitlement of Rs 0.085 per share will be satisfied by issuing 730,468 new ordinary shares at a consideration of Rs 16.00 per share, in the proportion of 1 new share for every 188.2354873861 existing shares held.

Shares of Maharaja Foods were trading up 0.61 percent at Rs16.50.

Yesterday the rupee was quoted at Rs 327.68/75 to the US dollar in the spot market, stronger from Rs 327.98/328.04 Friday, while bond yields were broadly steady, dealers said.

The telegraphic transfer rate for the dollar was 323.50 buying, 332.50 selling; the euro was 372.5779 buying, 386.3587 selling; and the pound was 437.1858 buying, 451.2942 selling.

Business

A huge welcoming ‘Yes’ to Ai-CHA

Published

8 hours ago

2026/09/1

Sahan Weerasooriya

Ai-CHA, the Indonesian origin, ice cream and bubble tea brand is establishing itself as an irresistible, super-cooling refreshment among consumers in the bustling coastal town of Negombo, besides proving a big hit among other Sri Lankan urban populations as well. The numbers visiting the initial Ai-CHA ice cream parlour in Negombo is solid evidence that the ice cream brand is proving a crowd-puller of the first magnitude.

Ai-CHA Ice cream and bubble tea is already present in over 2000 locations world wide and has made striking inroads into global consumer palettes. Referred to as ‘a popular international soft-serve ice cream and bubble tea brand’, these ideal thirst quenches are made of high quality ingredients such as, milk, milk powder, cream, sugar and water. The prices are purse-easy and affordable.