M’sia should revive Gemini Chit Fund to ease credit crunch woes!
Putrajaya commited grave strategic error by taking cue from Lee Kuan Yew on Gemini Chit Fund.
Before entering journalism, I joined an uncle to auction cattle, dabbled in buying and selling diamonds, money lending and “smuggling” textiles to India. Indian Customs allowed duty free imports provided they were “gifts” for family members.
Lee Kuan Yew figured prominently in our lives.
He was at Singapore Airport when an Indian drove up in a Rolls Royce. Lee was shocked. He wondered, “how could anyone own a Rolls Royce in MY Singapore?”
He investigated and discovered that the Indian gentleman not only founded and ran Gemini Chit Fund but planned a 50-storey skyscraper, the tallest, in Singapore. One thing led to another and the Indian gentleman, the target of numerous complaints by bankers, was jailed.
Gemini Chit Fund was closed down. We were heavily invested in Gemini in KL which was also closed down by Malaysia. We managed to recoup our investment.
Taj Mahal Chit Fund, which replaced Gemini in KL, was also closed down.
Chit Fund — also known as kutu or tontine — is a good concept which has existed for many years.
Gemini was supposed to be like the banker in a card game i.e. only getting a fee. Instead, the company allegedly took the first collection in every chit fund circle, participated in many chit fund circles and rigged the bidding.
Bankers were unhappy with chit funds.
The above is an Extract from the following autobiography and travelogue in progress . . .
World with a View — Memories from Borneo, British Malaya and beyond.
to be continued, next 30K words were written years ago and forgotten until recently.
FernzTheGreat 