A group of Singaporean investors is calling for better regulation of land banking, after failing to get back their dues from investment company Profitable Plots and left to fend for themselves.
Investors were unable to recover a sum worth more than $2 million, as they have not been able to seek help from any regulatory body since land banking is not regulated in the country.
The Monetary Authority of Singapore (MAS) said in an advisory that it does not regulate land banking, since it only involves investors purchasing direct interests in properties, rather than securities related to real estate.
Hence, the group is asking MAS to issue some form of regulation, as well as to investigate the practices of Profitable Plots.
“A nicely worded friendly petition … for a plea to the authorities to take the case seriously” has been put together, said one of the investors.
Kok T L, an investor who invested over $30,000, said authorities should take necessary action and offer some form of regulation and support.
Tan Kin Lian, former chief executive of NTUC Income, who has extensively blogged on land banking, stressed that there should be regulation on any product sold as an investment, especially if it is advertised through the media.
Land investment firm Walton International Group Singapore noted that it is not necessary for the authorities to regulate property investment. But Ms. Lusi, COO of Walton Singapore, said it would respect any decision about the issue.
Dr. Tan Tee Khoon, CEO of Singapore Accredited Estate Agencies, said that “the regulation route is always an appealing one to take when something goes awry”. However, investors “may be the best persons to protect themselves”. They should carry out necessary checks before making any investment.