Singapore 14 November 2008...MAS has been informed by the arranger of the Pinnacle Notes Series 9 and 10, Morgan Stanley Asia (Singapore) Pte, that a number of credit events have occurred in relation to the underlying securities of the notes, triggering an early redemption. MAS understands noteholders would be concerned about their investments.

2   MAS has asked the distributors of the notes to ensure that all affected investors are contacted and informed of the early redemption of these notes immediately. We are in close contact with Morgan Stanley Asia (Singapore) Pte to ensure that they provide all the necessary information on the early redemption of the notes to interested parties. Morgan Stanley Asia (Singapore) Pte has informed MAS that it is in the process of finalising the terms for the appointment of an international accounting firm to assess the early redemption process for the Pinnacle Series 9 and 10 notes.

Issue Size and Distributors

3   The total issue size of the Pinnacle Notes Series 9 and 10 was S$26 million, sold to about 700 retail investors through five distributors: DMG & Partners Securities, Hong Leong Finance, Kim Eng Securities, OCBC Securities and UOB Kay Hian.

Handling and Resolution of Complaints

4   Investors who consider they have a genuine claim that they were mis-sold the product or that the product was misrepresented to them should lodge their complaints with the financial institutions (FIs) that sold them the products.

5   MAS has set up a three-step process for investors' complaints to be handled and resolved.

Step 1: Lodge your complaint directly with the FI that sold you the products.

Step 2: Provide full details of your case to the FI to allow the FI to make fair assessment of your case.

Step 3: Accept the decision of the FI or refer your complaint to the Financial Industry Dispute Resolution Centre (FIDReC). A fast-track process has been put in place for cases referred to FIDReC.

6   MAS requires FIs to have a rigorous process to look into every complaint and to ensure that legitimate grievances are dealt with expeditiously. MAS has stressed to the FIs that they should devote all resources necessary to deal with affected investors and should ensure that their processes are independent, fair and transparent. Each FI has set up an internal review panel, chaired by its CEO to review customers' complaints and decide on a course of action.

7   This is a serious and impartial process for investors to resolve their complaints. If there is evidence of potential breaches of our laws or regulations, MAS will investigate and take appropriate action.

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Notes to Editor:

Annex 1
Frequently Asked Questions on Pinnacle Series 9 and 10 Notes

Annex 2
Three-Step Process for the Resolution of Complaints on Pinnacle Series 9 and 10 Notes

Annex 3
Key Things to Note About the FIDReC Fast-Track Dispute Resolution Processes

Annexes 1 to 3 are available on the MAS website www.mas.gov.sg