Collective Custodial's Offer for CLOB Securities

28 Dec 1999... We refer to the media coverage of 28 Dec 99 on the proposal by Collective Custodial Services (Asia) Pte Ltd ["Collective"] to Clob investors. The photographs and TV news broadcast of Mr Nazaruddin Mohsen displaying copies of letters to him from the MAS and SES may have given the impression that MAS had endorsed Collective's proposal.

2   Mr Nazaruddin Mohsen had written to the Authority on 29 Nov 99 to request a meeting to brief the Authority on Collective's proposal. MAS had responded that the Clob issue was handled by the Singapore Exchange Securities Trading Ltd (formerly known as the Stock Exchange of Singapore Ltd) ["SEST"], and suggested that Mr Mohsen should meet with the SEST to discuss his proposal. MAS also noted that the SEST had previously stated that it would not stand in the way of any private sector offers and that there has to be fair and reasonable arrangements for Clob investors who do not wish to accept the offers, to have their securities transferred to their individual securities accounts with the Malaysian Central Depository, and subsequently to trade them on the KLSE.

3   MAS has neither endorsed or commented on Collective's offer.