Hyflux saga stinks to the high heaven

In the end, PUB did take over the Tuaspring desalination plant. In theory, that would be the final nail in the coffin for the ongoing Hyflux saga. But like a broken record that refused to go away, the unfolding Hyflux saga took on a life of its own with United Arab Emirates utility company Utico emerging as potential white knight. And yet again, Hyflux debt moratorium got extended for a few months.

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The holy water of Hyflux Perpetual Securities

To be frank, I am not sure whether the prolonged Hyflux saga is a good thing for investors. It is not the first time that white knight had emerged and vowed to bring investors to the promised land. Indonesia’s SM Investments appeared out of nowhere to dangle a $530 million rescue mission in late last year. But more than a year later, the whole Hyflux saga remains in a shambolic mess and getting nowhere near the end of the tunnel. There were plenty of interest parties and talks of cash injections. But none of them were legal binding yet. Perhaps the botched deal of SM Investments had deterred interested parties from making a firm commitment.

Hyflux saga

Looking back, it must have been a nightmarish ride for Hyflux investors as many of them lost their pants investing in the perpetual bonds and preference shares. Many of them are retirees or accredited investors looking for high yield products to grow their wealth. So you can imagine their pains as they saw their life savings being vaporised with the implosion of the Hyflux bankruptcy protection. Indeed, the Hyflux saga has become such a national disgrace that it stinks to the high heaven. How did a former A-list homegrown company end up in such a wretched state is beyond me.

But apart from feeling sorry, Hyflux investors must pick themselves up and learn from this massive fiasco. Otherwise, it will be a recurring problem and chances of losing monies is going to be pretty high. In life, half the battle is won if you take care of the downside risks. In this article, I will share my investment story and hope investors can glean some learning points from it.

Michael Jordan’s successful habit

Investors lost money in investments like the recent Hyflux saga is not because they are stupid. Many of the retirees and accredited investors are actually highly educated and professionals with decades of working experiences. But interestingly, some of them were also victims of Minibonds, Swiber corporate bonds and gold buy-back schemes. Why do these people keep making the same old mistakes?

To say that investors could have avoided investing in Hyflux is like making an epic hindsight statement. All investors make mistakes in their financial journey. As a matter of fact, I have lost money dabbling in S-chip in the past as well. But to be a successful in investing, you must [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: June 2, 2019 — 1:43 pm

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