This is an application by Yong Khai Min, the administrator of the estate of Yong Wai Man, deceased (the administrator) for the moneys of the said estate which had been held in trust for three minor beneficiaries, namely, Yong Mui Poh, Yong Vun Bing and Yong Vun Sing (the infants), to be reinvested. The net asset of the estate consists of cash in the sum of RM375,435.87 as at 20 November 1986, the date of death. The court had on 15 June 1988 made the following order, viz:

(1) the applicant be excluded from becoming one of the beneficiaries

pursuant to s 61 of the Probate and Administration Ordinance (Cap

109) of the Laws of Sabah;

(2) the applicant may retain the sum of RM6,000 as out of pocket

expenses from the estate;

(3) the balance thereof be deposited in the Hongkong & Shanghai

Banking Corp in the name of the applicant on trust for the

beneficiaries with liberty to apply and withdraw to the extent of

RM1,000 only per month commencing from June 1988 with liberty to

reapply; and

(4) to distribute the remaining balance of the estate to the

following beneficiaries upon them attaining the age of 18 in

equal shares, namely:

(a) Yong Mui Poh -- one-third (1u3) share

(b) Yong Vun Bing -- one-third (1u3) share

(c) Yong Vun Sing -- one-third (1u3) share

The administrator in his affidavit sworn on 2 February 1994 asserts that it is no longer possible to maintain the infants with the sum of RM1,000 per month, provided for in the order of the court, supra. He also asserts that he has not yet been disbursed the sum of RM6,000 which the court had ordered. The money of the estate remaining on 3 January 1994 is the sum of RM308,170.49 which is with the Hongkong & Shanghai Banking Corp (as it was then known), Tawau branch. The administrator is praying for an order:

(1) that a sum sufficient to disburse the administrator of the said

RM6,000 and legal fees totalling RM4,538;

(2) that a sum equivalent to half of the balance of the money be

placed in a fixed deposit on a 12 monthly basis with MBf Finance

Bhd or any other financial institution; and

(3) that the remainder of the money be placed in a savings account

with MBf Finance Bhd or any other financial institution but with

no limit to be placed on the spending for the benefit of the

infants;

At the hearing on 11 April 1994, I proffered the off-the-cuff remark that the money of the estate had not grown since 1988 and that therefore, putting the money in a bank in the manner proposed may not be in the interests of the infants. I referred Mr Edwin Tsen, counsel for the administrator, to the Trustee Act 1949, and to the various unit trust funds that are available in the market and asked him to seek professional advice relating to the investment of the money of the estate. The matter was adjourned for Mr Edwin Tsen to put in a written submission which he did and made the following propositions:

(1) A sum of RM200,000 be invested in MBf First Fund or such other

unit trusts as the administrator deems fit with power to sell and

reinvest from time to time; and

(2) the remaining balance be put in a financial institution that

offers the highest interest rate to earn deposits to meet the

living and education expenses of the beneficiaries.

All this while, the thinking of the court had been that the best and the safest investment is to place the money with the financial institutions to earn interest. It may very well be true then but the financial system in the country had progressed so much in this decade that opportunities abound for money to be earned, including opportunities for investment. It is with this fact in mind that I had made the said off-the-cuff