Read this report.
My comment
Many investors have approached me for assistance on similar investments which were not repaid after the maturity date.
Monday, May 31, 2010
20 year impasse
Someone attacked me for posting my views about the 20 year impasse in reaching agreement on the bilaterial issues and challenged me to state what I would have done if I were "PM, SM or MM". It is difficult to be engaged in a discussion with a vile person whose primary purpose is to attack another person under anonymity.
I like to give my views in this hypothetical situation. It would not be possible to judge if my approach would achieve any useful results. I would approach this issue on the personal values that I follow:
- honesty
- fairness
- positive
- courage
- public service
If we are honest and fair, it would be easy to win the trust of the other party. Both parties can look at the positive aspects and focus on what each side could gain from the cooperation.
I sense that one side felt that the Points of Agreement was not fair to them (for whatever reasons) and although it was agreed, they would find other ways to get out of the deal. The other side insisted that "a deal is a deal" and should be honored. This explains the impasse that lasted for 20 years. Both sides need the courage to recognise that the earlier deal would not work, and that a new approach had to be taken (without waiting for 20 years).
As this is a hypothethical case, no one know whether it would have worked. I invite other people, wishing to give their views, to give their name and to refrain from passing judgement in this hypothetical case, or to make personal attacks.
Tan Kin Lian
I like to give my views in this hypothetical situation. It would not be possible to judge if my approach would achieve any useful results. I would approach this issue on the personal values that I follow:
- honesty
- fairness
- positive
- courage
- public service
If we are honest and fair, it would be easy to win the trust of the other party. Both parties can look at the positive aspects and focus on what each side could gain from the cooperation.
I sense that one side felt that the Points of Agreement was not fair to them (for whatever reasons) and although it was agreed, they would find other ways to get out of the deal. The other side insisted that "a deal is a deal" and should be honored. This explains the impasse that lasted for 20 years. Both sides need the courage to recognise that the earlier deal would not work, and that a new approach had to be taken (without waiting for 20 years).
As this is a hypothethical case, no one know whether it would have worked. I invite other people, wishing to give their views, to give their name and to refrain from passing judgement in this hypothetical case, or to make personal attacks.
Tan Kin Lian
Dr. Goh and frugality
Hi Mr Tan,
The said insurance company, published in full page in 4 languages in the national newspapers (on 29 May), including TODAY paper today (31 May). It pays tribute to the great founding father, the late Dr Goh who inspired the setting up of the first insurance co-operative - 40 years ago.
Dr Goh was the Chairman for the first ten years. He leads a frugal life and does not waste money and resources. I am sure that if Dr Goh is still alive, he will not approve such wasteful and unnecessary spending of policyholders' money. There are other frugal and economical ways of paying tribute to the late Dr Goh
It said that it celebrates it 40th birthday as a co-operative.
How sad that all the efforts started by the late Dr Goh in pioneering the co-operative movement has been eroded by the new management team. It is no longer a simple co-operative, but a 'commercialised co-operative' with many benefits taken away
We need leaders like you to highlight through the forum, the wasteful spending of policyholders money in such unnecessary publication of the tribute to the late Dr Goh.
CK
My comment
Dr. Goh Keng Swee's contribution to the welfare of 2 million families in Singapore who has benefitted from NTUC Income is immense and immeasurable. The money spent on recognising this contribution is small and, although it comes from the policyholder's funds, is worth spending. Many young people may not be aware about the part that Dr. Goh has made in this important aspect of the lives of Singaporeans. It is just as important as the building of the economy to create jobs for Singaporeans, which was well covered in the media.
I hope that NTUC Income will recognise the value of frugality that Dr. Goh has lived his life, and money should be spent wisely so that the policyholders can continue to enjoy a good return on their savings.
Tan Kin Lian
The said insurance company, published in full page in 4 languages in the national newspapers (on 29 May), including TODAY paper today (31 May). It pays tribute to the great founding father, the late Dr Goh who inspired the setting up of the first insurance co-operative - 40 years ago.
Dr Goh was the Chairman for the first ten years. He leads a frugal life and does not waste money and resources. I am sure that if Dr Goh is still alive, he will not approve such wasteful and unnecessary spending of policyholders' money. There are other frugal and economical ways of paying tribute to the late Dr Goh
It said that it celebrates it 40th birthday as a co-operative.
How sad that all the efforts started by the late Dr Goh in pioneering the co-operative movement has been eroded by the new management team. It is no longer a simple co-operative, but a 'commercialised co-operative' with many benefits taken away
We need leaders like you to highlight through the forum, the wasteful spending of policyholders money in such unnecessary publication of the tribute to the late Dr Goh.
CK
My comment
Dr. Goh Keng Swee's contribution to the welfare of 2 million families in Singapore who has benefitted from NTUC Income is immense and immeasurable. The money spent on recognising this contribution is small and, although it comes from the policyholder's funds, is worth spending. Many young people may not be aware about the part that Dr. Goh has made in this important aspect of the lives of Singaporeans. It is just as important as the building of the economy to create jobs for Singaporeans, which was well covered in the media.
I hope that NTUC Income will recognise the value of frugality that Dr. Goh has lived his life, and money should be spent wisely so that the policyholders can continue to enjoy a good return on their savings.
Tan Kin Lian
Sunday, May 30, 2010
Relevance of Tommy Wong's book
Tommy Wong's book, Wisdom to Live your Life, is relevant to the people who have lost money on the mini-bonds and other credit-linked notes.
Tommy talked about the greed in the materialistic world where the following people make a lot of money (and in the process made other people poorer):
a) politicians
b) top CEOs
c) bankers
He also talked about how to find happiness in the spiritual world by living on certain principles. This came give some comfort to those who have been made poorer by the greedy financial institutions.
His book has relevance to the situation in Singapore. It is easy to read. You can buy his book online here.
Tan Kin Lian
Tommy talked about the greed in the materialistic world where the following people make a lot of money (and in the process made other people poorer):
a) politicians
b) top CEOs
c) bankers
He also talked about how to find happiness in the spiritual world by living on certain principles. This came give some comfort to those who have been made poorer by the greedy financial institutions.
His book has relevance to the situation in Singapore. It is easy to read. You can buy his book online here.
Tan Kin Lian
Low cost investment funds
Dear Mr Tan,
I've read your blog regularly and you're an advocate of low cost index fund as the primary tool for investments. While the idea it's great in principle, I find the lack of index fund products in Singapore to be somewhat inconvenient. Based on my analysis, we only have the following products locally, either through unit trust or traded at SGX:
Singapore Stock
There is only StreetTracks STI ETF and DBS STI ETF. Both track the same index. In my opinion the STI Index is not that well diversified, it only has 30 companies (compare it to S&P 500) and it comprises only of large cap stocks. There is no index fund or ETF that tracks a Singapore small cap index, or even an index that has more companies making up the index (e.g. a Singapore total market index that has small + large cap companies).
Singapore Bond
There is only the ABF Singapore Bond ETF, which is to my knowledge the only passively-managed bond fund in this country. However, the ETF suffers from problems like liquidity, large bid-ask spread and trading prices not tracking its NAV properly. It behaves more like a stock than a bond index fund at times. Considering that it invests only in SGD-denominated government bonds, that shouldn't be the case. As for bond unit trust, most do not invest in local bonds and is subjected to currency risk. Bond unit trust also have expense ratios like ~1% which makes extremely unattractive. The last way is to invest in SGS bonds direct, but regularly saving into SGS bonds is difficult as they have fixed issuance dates. To complicate the matter, SGS bonds cannot be bought online (unless you consider FSM secondary SGS bond market).
International Stock
Many of the Lyxor series of ETF which do cover international stocks are usually single country fund and are not a good form of diversification. There are some regional/global ETFs, but the whole range of Lyxor ETFs suffer from liquidity problems too. There is only 3 unit trust that are passively managed, and those are the Lion Capital Infinity series that are feeder funds into Vanguard index funds. However, Lion Capital slaps a 1% management fee just for feeding money into Vanguard index funds... real easy money for Lion Capital for just doing almost zero work!
I was hoping if you could comment on this in your blog one day. It certainly would help if we had more good index fund based products in Singapore.
Garrett
My comment
Read my book, Practical Guide on Financial Planning available at www.easysearch.sg/ishop
Some people commented about the lack of liquidity of the STI ETF. This should not be of concern to the long term investor. The ETF manager will create more units to meet demand. The ETF is not suitable for short term trading, but is suitable for long term investing. Just place your order at the price indicated by the index and wait for someone to sell the units to you. Be patient.
I've read your blog regularly and you're an advocate of low cost index fund as the primary tool for investments. While the idea it's great in principle, I find the lack of index fund products in Singapore to be somewhat inconvenient. Based on my analysis, we only have the following products locally, either through unit trust or traded at SGX:
Singapore Stock
There is only StreetTracks STI ETF and DBS STI ETF. Both track the same index. In my opinion the STI Index is not that well diversified, it only has 30 companies (compare it to S&P 500) and it comprises only of large cap stocks. There is no index fund or ETF that tracks a Singapore small cap index, or even an index that has more companies making up the index (e.g. a Singapore total market index that has small + large cap companies).
Singapore Bond
There is only the ABF Singapore Bond ETF, which is to my knowledge the only passively-managed bond fund in this country. However, the ETF suffers from problems like liquidity, large bid-ask spread and trading prices not tracking its NAV properly. It behaves more like a stock than a bond index fund at times. Considering that it invests only in SGD-denominated government bonds, that shouldn't be the case. As for bond unit trust, most do not invest in local bonds and is subjected to currency risk. Bond unit trust also have expense ratios like ~1% which makes extremely unattractive. The last way is to invest in SGS bonds direct, but regularly saving into SGS bonds is difficult as they have fixed issuance dates. To complicate the matter, SGS bonds cannot be bought online (unless you consider FSM secondary SGS bond market).
International Stock
Many of the Lyxor series of ETF which do cover international stocks are usually single country fund and are not a good form of diversification. There are some regional/global ETFs, but the whole range of Lyxor ETFs suffer from liquidity problems too. There is only 3 unit trust that are passively managed, and those are the Lion Capital Infinity series that are feeder funds into Vanguard index funds. However, Lion Capital slaps a 1% management fee just for feeding money into Vanguard index funds... real easy money for Lion Capital for just doing almost zero work!
I was hoping if you could comment on this in your blog one day. It certainly would help if we had more good index fund based products in Singapore.
Garrett
My comment
Read my book, Practical Guide on Financial Planning available at www.easysearch.sg/ishop
Some people commented about the lack of liquidity of the STI ETF. This should not be of concern to the long term investor. The ETF manager will create more units to meet demand. The ETF is not suitable for short term trading, but is suitable for long term investing. Just place your order at the price indicated by the index and wait for someone to sell the units to you. Be patient.
Survey on Orphaned Policies
Dear Mr Tan,
Thank you for referring your readers to my "Orphaned Insurance Policy" poll. The 2-minute-only poll is still open and they can help out if they haven't. The updated results, charts, and comments are available at:
http://cliftonphua.blogspot.com/2010/05/updated-results-from-orphaned-insurance.html
Below is my take on results from the first 40 respondents.
(1) Respondents are mostly over 35 years old with 3-8 policies.
(2) More than 4 out of 5 Singaporeans have at least 1-2 orphaned policies.
(3) Most orphaned policies came from AIA, Prudential, and NTUC Income - the most established insurance companies in Singapore.
(4) Original financial advisor usually left without giving reason, joined another insurance company, changed career or retired - fair enough, this happens in any company and industry.
(5) Out of those Singaporeans with orphaned policies, only about 1 out of 4 of their new financial advisors have contacted them. 1 out of 8 have assisted them before and to very little satisfaction. In my opinion, this is an unacceptable service level. Policy holders don't seem to care… only until something rare but dramatic happens…
(6) Usefulness of financial advisors is questionable
"It's good to know about what you bought. I've no problem living without an adviser as I have find out more than enough information / procedures should I need any form of service or claims. It makes no difference with or without an insurance adviser."
"This is to be expected. No stepmother will treat you better than your real mother. It is wishful thinking that the orphaned policies will get better treatment from the new agent since the bulk of the commission is already given to the original agent. It is time that a separate channel be made available for people to buy policies without going through agents since they do not add value anyway nowadays."
(7) Commission-only incentives for financial advisors are evil
"It is a shield (medical) plan, the company could have assigned a new advisor but didn't. probably because the premium is small and the new advisor will not get renewal commission."
"The new financial advisor is only interested to generate new sales for herself."
"Commission-based selling is the culprit!"
Clifton Phua
Thank you for referring your readers to my "Orphaned Insurance Policy" poll. The 2-minute-only poll is still open and they can help out if they haven't. The updated results, charts, and comments are available at:
http://cliftonphua.blogspot.com/2010/05/updated-results-from-orphaned-insurance.html
Below is my take on results from the first 40 respondents.
(1) Respondents are mostly over 35 years old with 3-8 policies.
(2) More than 4 out of 5 Singaporeans have at least 1-2 orphaned policies.
(3) Most orphaned policies came from AIA, Prudential, and NTUC Income - the most established insurance companies in Singapore.
(4) Original financial advisor usually left without giving reason, joined another insurance company, changed career or retired - fair enough, this happens in any company and industry.
(5) Out of those Singaporeans with orphaned policies, only about 1 out of 4 of their new financial advisors have contacted them. 1 out of 8 have assisted them before and to very little satisfaction. In my opinion, this is an unacceptable service level. Policy holders don't seem to care… only until something rare but dramatic happens…
(6) Usefulness of financial advisors is questionable
"It's good to know about what you bought. I've no problem living without an adviser as I have find out more than enough information / procedures should I need any form of service or claims. It makes no difference with or without an insurance adviser."
"This is to be expected. No stepmother will treat you better than your real mother. It is wishful thinking that the orphaned policies will get better treatment from the new agent since the bulk of the commission is already given to the original agent. It is time that a separate channel be made available for people to buy policies without going through agents since they do not add value anyway nowadays."
(7) Commission-only incentives for financial advisors are evil
"It is a shield (medical) plan, the company could have assigned a new advisor but didn't. probably because the premium is small and the new advisor will not get renewal commission."
"The new financial advisor is only interested to generate new sales for herself."
"Commission-based selling is the culprit!"
Clifton Phua
Ranking of cities by Quality of Life
Here is another ranking by Mercer
http://www.mercer.com/qualityoflivingpr
My comments (revised):
Each survey uses its own criteria, as explained in the report.
The top 5 cities are:
1 Vienna
2. Zurich
3. Geneva
4. Vancouver
4. Auckland
Singapore ranked 28 but is highest in Asia.
http://www.mercer.com/qualityoflivingpr
My comments (revised):
Each survey uses its own criteria, as explained in the report.
The top 5 cities are:
1 Vienna
2. Zurich
3. Geneva
4. Vancouver
4. Auckland
Singapore ranked 28 but is highest in Asia.
Investing savings for a debt free family
Dear Mr Tan
We wish to seek your opinion on what we should do with our savings. Currently, we have paid off our HDB loan, car loan, and we are practically debt free. We are in our 30s and we have 2 sons from age 5 to 10. We have some investments and they are doing well fetching us dividend yields of 5 to 9% per annum. We have sufficient insurance coverage should we report early to heaven and have also been buying education plans for our children since they were 1. We have learnt to live beneath our means and have saved a bit of money through the years.
You see, we have some savings and we would like to accumulate our wealth but we do not know what to do now. In addition, we did think about investing in a private property but prices are rocket high now. In your opinion do you think it is right to purchase a private property for investment purposes in Singapore? Do you think properties prices will go down soon?
TO
REPLY
Invest in a low cost investment fund as suggested in my book, Practical Guide on financial planning. It can be bought online. Visit www.easysearch.sg/ishop
We wish to seek your opinion on what we should do with our savings. Currently, we have paid off our HDB loan, car loan, and we are practically debt free. We are in our 30s and we have 2 sons from age 5 to 10. We have some investments and they are doing well fetching us dividend yields of 5 to 9% per annum. We have sufficient insurance coverage should we report early to heaven and have also been buying education plans for our children since they were 1. We have learnt to live beneath our means and have saved a bit of money through the years.
You see, we have some savings and we would like to accumulate our wealth but we do not know what to do now. In addition, we did think about investing in a private property but prices are rocket high now. In your opinion do you think it is right to purchase a private property for investment purposes in Singapore? Do you think properties prices will go down soon?
TO
REPLY
Invest in a low cost investment fund as suggested in my book, Practical Guide on financial planning. It can be bought online. Visit www.easysearch.sg/ishop
Land banking - in the news
Hi Mr. Tan
Here are two newspaper reports on land banking:
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_526464.html
http://tnp.sg/news/story/0,4136,241645,00.html?
NL
Here are two newspaper reports on land banking:
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_526464.html
http://tnp.sg/news/story/0,4136,241645,00.html?
NL
What is the "worth" of anything in life?
THE SOLDIER
Horror gripped the heart of a World War-I soldier, as he saw his lifelong friend fall in battle. The soldier asked his Lieutenant if he could go out to bring his fallen comrade back.
"You can go," said the Lieutenant," but don't think it will be worth it.Your friend is probably dead and you may throw your life away."
"The Lieutenant's words didn't matter, and the soldier went anyway. Miraculously, he managed to reach his friend, hoisted him onto his shoulder and brought him back to their company's trench.
The officer checked the wounded soldier, then looked kindly at his friend. "I told you it wouldn't be worth it," he said. "Your friend is dead and you are mortally wounded."
"It was worth it, Sir," said the soldier.
"What do you mean by worth it?" responded the Lieutenant. "Your friend is dead."
"Yes Sir," the soldier answered,"but it was worth it because when I got to him, he was still alive and I had the satisfaction of hearing him say.... "Jim...I knew you'd come."
REFLECTION
Many times in life, whether a thing is worth doing or not, really depends on how you look at it. Enjoy the little things, for one day you may look back and realise they were the big things. Fhe way to love anything is to realise its worth and that it might be lost. Also, relationships are like crystals, you dont realize how much it's worth until it breaks.
Take up all your courage and do something your heart tells you to do, so that you may not regret not doing it later in your life!!
Horror gripped the heart of a World War-I soldier, as he saw his lifelong friend fall in battle. The soldier asked his Lieutenant if he could go out to bring his fallen comrade back.
"You can go," said the Lieutenant," but don't think it will be worth it.Your friend is probably dead and you may throw your life away."
"The Lieutenant's words didn't matter, and the soldier went anyway. Miraculously, he managed to reach his friend, hoisted him onto his shoulder and brought him back to their company's trench.
The officer checked the wounded soldier, then looked kindly at his friend. "I told you it wouldn't be worth it," he said. "Your friend is dead and you are mortally wounded."
"It was worth it, Sir," said the soldier.
"What do you mean by worth it?" responded the Lieutenant. "Your friend is dead."
"Yes Sir," the soldier answered,"but it was worth it because when I got to him, he was still alive and I had the satisfaction of hearing him say.... "Jim...I knew you'd come."
REFLECTION
Many times in life, whether a thing is worth doing or not, really depends on how you look at it. Enjoy the little things, for one day you may look back and realise they were the big things. Fhe way to love anything is to realise its worth and that it might be lost. Also, relationships are like crystals, you dont realize how much it's worth until it breaks.
Take up all your courage and do something your heart tells you to do, so that you may not regret not doing it later in your life!!
Land banking
Hello Mr Tan
See this report from the UK on the site at Cherry Tree grove.
While it may have seemed that they were actively chasing this the reality is that the planning and appeals process is just filling in a few forms and paying small fees. So they have kept this site alive for three years with a very small investment while telling investors they are actively getting planning permission. Anyway this is the last round of appeal so now they have to tell investors it has failed. If you look on their website they are still talking about getting planning approval for this site.
http://www.chelmsfordweeklynews.co.uk/news/colchester/8189096.Green_gateway_hotel_plan_turned_down
http://www.profitablegroup.com/plots-ctg.aspx
Here is a report on the commotion at the office of a land banking company:http://www.todayonline.com/Singapore/EDC100529-0000082/Profitable-Group-slams-irate-investors
SF
See this report from the UK on the site at Cherry Tree grove.
While it may have seemed that they were actively chasing this the reality is that the planning and appeals process is just filling in a few forms and paying small fees. So they have kept this site alive for three years with a very small investment while telling investors they are actively getting planning permission. Anyway this is the last round of appeal so now they have to tell investors it has failed. If you look on their website they are still talking about getting planning approval for this site.
http://www.chelmsfordweeklynews.co.uk/news/colchester/8189096.Green_gateway_hotel_plan_turned_down
http://www.profitablegroup.com/plots-ctg.aspx
Here is a report on the commotion at the office of a land banking company:http://www.todayonline.com/Singapore/EDC100529-0000082/Profitable-Group-slams-irate-investors
SF
Saturday, May 29, 2010
Foreign language and culture
There are some words or expressions in foreign languages that have a deep meaning or philosophy. I wish to introduce some of these expressions to you. I hope that you can contribute other expressions:
Schadenfreude (German): pleasure derived from the misfortunes of others
Savoir-faire (French): the ability to say or do the right or graceful thing.
There are many examples from the Chinese, Japanese language and other languages. These words convey special meaning that shapes the behavior and culture of a people.
We have our own Singapore examples, such as "kaisu" and "kiasi".
Schadenfreude (German): pleasure derived from the misfortunes of others
Savoir-faire (French): the ability to say or do the right or graceful thing.
There are many examples from the Chinese, Japanese language and other languages. These words convey special meaning that shapes the behavior and culture of a people.
We have our own Singapore examples, such as "kaisu" and "kiasi".
Remembering Dr. Goh Keng Swee
How should Singapore remember Dr Goh Keng Swee, a founding father and one of the most brilliant architects of our nation? Appreciate your vote in this survey:
http://www.surveymonkey.com/s/T3BBHBH
Terence Chua
http://www.surveymonkey.com/s/T3BBHBH
Terence Chua
Rules of the game
It is interesting to watch how the rules of a game influence the behavior of the participants.
There is a popular game called Hearts. It is available as a standard game with Microsoft Windows. Here are the rules of the game:
a) The game involves exactly four players. At the end of the game, when one player accumulates at leat 100 penalty points, the player with the lowest point is declared as the winner. The other three players are considered as having lost the game.
b) The game comprises many rounds (or "hands"). 26 penalty points are awarded to the players on each roudn.
c) There is a special feature that if one player accumulates all the 26 penalty points during a hand, the player is considered as having "shot the moon". In that case, the 26 penalty points is awarded to the other three players.
The rules of this game influence the behavior of the players as follows:
a) As the game progresses, all the three losing players (i.e with the higher points) cooperate among themselves to prevent the leading player (with the lowest point) from widening the lead.
b) In each hand, the players cooperate among themselves to prevent one player from "shooting the moon". They will keep a strong card to prevent this situation and will be willing to take one or more penalty points to prevent this outcome. This is for the benefit of the other players.
The behavior of Singaporeans is also shaped by our economic environment and our education system. We were told to be "excellent" and be better than our classmates and get to the "top of the class", When we start work, we were told to "look after ourselves" as "nobody owes us a living".
This environment develops Singaporeans to be competitive, selfish and incompassionate. Generally, we consider the unemployed or unsuccessful people as being "lazy" or have "bad attitude".
When we become victirms of these circumstances, we begin to realise that it could be due to bad luck or unfairness. By that time, we lament that other people do not step forward to help us as they are only looking after themselves.
There are Signaporeans who are exceptions to this observation. But, I do believe that many Singaporeans show the behavior that I have described.
Tan Kin Lian
There is a popular game called Hearts. It is available as a standard game with Microsoft Windows. Here are the rules of the game:
a) The game involves exactly four players. At the end of the game, when one player accumulates at leat 100 penalty points, the player with the lowest point is declared as the winner. The other three players are considered as having lost the game.
b) The game comprises many rounds (or "hands"). 26 penalty points are awarded to the players on each roudn.
c) There is a special feature that if one player accumulates all the 26 penalty points during a hand, the player is considered as having "shot the moon". In that case, the 26 penalty points is awarded to the other three players.
The rules of this game influence the behavior of the players as follows:
a) As the game progresses, all the three losing players (i.e with the higher points) cooperate among themselves to prevent the leading player (with the lowest point) from widening the lead.
b) In each hand, the players cooperate among themselves to prevent one player from "shooting the moon". They will keep a strong card to prevent this situation and will be willing to take one or more penalty points to prevent this outcome. This is for the benefit of the other players.
The behavior of Singaporeans is also shaped by our economic environment and our education system. We were told to be "excellent" and be better than our classmates and get to the "top of the class", When we start work, we were told to "look after ourselves" as "nobody owes us a living".
This environment develops Singaporeans to be competitive, selfish and incompassionate. Generally, we consider the unemployed or unsuccessful people as being "lazy" or have "bad attitude".
When we become victirms of these circumstances, we begin to realise that it could be due to bad luck or unfairness. By that time, we lament that other people do not step forward to help us as they are only looking after themselves.
There are Signaporeans who are exceptions to this observation. But, I do believe that many Singaporeans show the behavior that I have described.
Tan Kin Lian
New railway in Malaysia
I am delighted that, after twenty years, Singapore and Malaysia has resolved their differences on the railway station in Tanjong Pagar. The new railway station will move initially to Woodlands. We can look forward to a new railway system being developed in Malaysia over the next few years.
Many advanced countries have a high speed railway system to connect its citiies. For example, the progress in China and Taiwan is amazing. Malaysia can catch up for lost time. Many Singaporeans would love to have the chance to travel to Kuala Lumpur and Penang by train, rather than by plane. This will also benefit many Malaysians who work in Singapore.
Some people wonder why it took twenty years for the leaders of the two countries to resolve the differences. This shows that high salaries of leaders do not lead to better performance. However, as the saying goes, "Better late than never!"
Tan Kin Lian
Many advanced countries have a high speed railway system to connect its citiies. For example, the progress in China and Taiwan is amazing. Malaysia can catch up for lost time. Many Singaporeans would love to have the chance to travel to Kuala Lumpur and Penang by train, rather than by plane. This will also benefit many Malaysians who work in Singapore.
Some people wonder why it took twenty years for the leaders of the two countries to resolve the differences. This shows that high salaries of leaders do not lead to better performance. However, as the saying goes, "Better late than never!"
Tan Kin Lian
Quarrel on the MRT train
Two persons were quarrelling on the MRT train. A young girl, while seated and talking in the mobile phone, carelessly knoced against a young man seated next to him. The young man complained, as he was listening to his music. The lady complained loudly about the remarks and abused the man continuously for scolding her for an unintended act. She called her friend on the mobile phone to tell loudly about this incident. She also challenged him to get down at the next stop for a fight.. From the accent, both of these persons were foreigners who have lived in Singapore for some time.
This is an unntended consequences of allowing many foreigners to live in Singapore in a short time. The culture and social behavior of the people livng in Singapore has changed consideraly.
Tan Kin Lian
This is an unntended consequences of allowing many foreigners to live in Singapore in a short time. The culture and social behavior of the people livng in Singapore has changed consideraly.
Tan Kin Lian
Life is more difficult
I met a few relatives at a wedding reception.
One drives a bus. The insurance premium has increased sharply. He now has to drive longer hours and get his grown up son to take the third shift to make ends meet.
Another runs a mini-mart. He complains about the regulations on placing goods outside his shop and the summon that he received from the town council. After seeing his MP, he was issued with a courts summons.
Another runs a catering business. He is worried about the competitive environment, low margin and high operating cost.
All of them said that life is more difficult today, compared to the past. They face stress due to the high cost of living, rules and regulations and competition.
Tan Kin Lian
One drives a bus. The insurance premium has increased sharply. He now has to drive longer hours and get his grown up son to take the third shift to make ends meet.
Another runs a mini-mart. He complains about the regulations on placing goods outside his shop and the summon that he received from the town council. After seeing his MP, he was issued with a courts summons.
Another runs a catering business. He is worried about the competitive environment, low margin and high operating cost.
All of them said that life is more difficult today, compared to the past. They face stress due to the high cost of living, rules and regulations and competition.
Tan Kin Lian
Friday, May 28, 2010
Sudoku Pocket books
If you are going for a holiday and you like a pocket book of Sudoku puzzle, you can buy them here (Logic9). A limited number of pocket books is available. There will be no reprint.
Thursday, May 27, 2010
Orphaned policies
Dear Mr Tan,
Please help me publicise the following poll in your blog. It will be much appreciated.
http://cliftonphua.blogspot.com/2010/05/orphaned-insurance-policy-poll.html
Clifton Phua
Please help me publicise the following poll in your blog. It will be much appreciated.
http://cliftonphua.blogspot.com/2010/05/orphaned-insurance-policy-poll.html
Clifton Phua
Why no need to worry about dying
Extract from Tommy Wong's book, "Wisdom on How to Live Life"
Tom: How are you, Guru Harry?
Guru: I’m very well, Tom.
Tom: I thought the doctor said that you only have a few more days to live.
Guru: Yes, that’s true. But that only means I’ll leave my body in a few days time.
Tom: You mean you’re not worried about dying?
Guru: Well, dying means the soul is separated from the body but the soul will continue to live while the body is left behind. You know we are souls and not bodies, so why should I worry?
Tommy Wong's book can be purchased here.
Tom: How are you, Guru Harry?
Guru: I’m very well, Tom.
Tom: I thought the doctor said that you only have a few more days to live.
Guru: Yes, that’s true. But that only means I’ll leave my body in a few days time.
Tom: You mean you’re not worried about dying?
Guru: Well, dying means the soul is separated from the body but the soul will continue to live while the body is left behind. You know we are souls and not bodies, so why should I worry?
Tommy Wong's book can be purchased here.
Tuesday, May 25, 2010
Toxic fumes in industrial building
Dear Mr. Tan
I work in an industrial estate complex belonging to a listed industrial REIT in Ang Mo Kio Ave 10. Since late last year, a unit next to the ground floor lift lobby have been discharging a foul smelling air. This pervades the lift lobby and on cold days, drifts up to even the third and fourth floor. The smell of this discharging is nauseating although the discharge is intermittent and the intensity varies from time to time.
I was wondering if the gas is toxic or carcinogenic. So I sent a mail to NEA and also notified the management of the building. After much tai-chi and wayang, the situation did not change significantly and I think no real measurements and test of the air was done after a full 6 months.
What can we do to these people especially the NEA? Are they not supposed to act like civil servants looking after the people's health and interest? Must we wait until someone dies or get cancer before something happens?
HW
I work in an industrial estate complex belonging to a listed industrial REIT in Ang Mo Kio Ave 10. Since late last year, a unit next to the ground floor lift lobby have been discharging a foul smelling air. This pervades the lift lobby and on cold days, drifts up to even the third and fourth floor. The smell of this discharging is nauseating although the discharge is intermittent and the intensity varies from time to time.
I was wondering if the gas is toxic or carcinogenic. So I sent a mail to NEA and also notified the management of the building. After much tai-chi and wayang, the situation did not change significantly and I think no real measurements and test of the air was done after a full 6 months.
What can we do to these people especially the NEA? Are they not supposed to act like civil servants looking after the people's health and interest? Must we wait until someone dies or get cancer before something happens?
HW
Jobs Central
I have posted two job openings at this portal:
https://secure.jobscentral.com.sg/
a) Business development
b) Developer - Nokia Qt or C++
Interested candidiates should visit the portal and respond.
https://secure.jobscentral.com.sg/
a) Business development
b) Developer - Nokia Qt or C++
Interested candidiates should visit the portal and respond.
Posting an article in my blog
I invite readers to send their article to me at kinlian@gmail.com for posting in my blog. If you do not wish to disclose your name, I can use your initials. I have posted the views of TY who sent it to me by e-mail.
Employment and older workers
Hi Mr Tan,
I refer to one of blog's article titled "Wages of older workers".
The survey done by SNEF/MOM/NTUC is merely a red herring and a public relation exercise by the govt. Which employer in their right mind would tell the surveyors that they automatically cut the wages of workers who are 60 or older?? Do SNEF/MOM/NTUC verify or audit what the employers tell them? Of course not. This survey only tells us the percentage of employers who are stupid enough to admit that they automatically reduce the wages of older workers! The best part is, our govt is leading the charge with depressing our wages by reducing the employer CPF contribution rate for older workers.
Notice that shortly after the survey results were published, Capt James, who heads the pilots union at SIA, recently criticised SIA for discriminating against S'porean pilots (who face pay cuts and/or placed on pay-if-you-fly contract when they get older) in favour of expat pilots who are provided with a generous package. I am not disputing that pilots are paid well and most can retire comfortably, but the pertinent point is the fact that S'poreans are being discriminated against in our own country!
I can empathise with the your friend's plight. He must have felt betrayed by his employer. The govt claims that S'pore is a meritocratic nation and so by natural extension, employers will find the best talent for the job without any discrimination. Frankly, that is just wishful thinking on the part of out govt. It is extremely naïve to believe that personal relations don't play a part in employment. Say a company hires a Filipino manager.....he will try his best to hire his countrymen since they share the same cultural background and mother tongue. This is not meritocracy. This is pure stupidity of our national policies.
Like you said, how can S'poreans have more babies when our livelihood is in danger? I guess that the a key downside to paying our ministers and senior civil servants outrageous salaries......they begin to live in their own world.
TY
I refer to one of blog's article titled "Wages of older workers".
The survey done by SNEF/MOM/NTUC is merely a red herring and a public relation exercise by the govt. Which employer in their right mind would tell the surveyors that they automatically cut the wages of workers who are 60 or older?? Do SNEF/MOM/NTUC verify or audit what the employers tell them? Of course not. This survey only tells us the percentage of employers who are stupid enough to admit that they automatically reduce the wages of older workers! The best part is, our govt is leading the charge with depressing our wages by reducing the employer CPF contribution rate for older workers.
Notice that shortly after the survey results were published, Capt James, who heads the pilots union at SIA, recently criticised SIA for discriminating against S'porean pilots (who face pay cuts and/or placed on pay-if-you-fly contract when they get older) in favour of expat pilots who are provided with a generous package. I am not disputing that pilots are paid well and most can retire comfortably, but the pertinent point is the fact that S'poreans are being discriminated against in our own country!
I can empathise with the your friend's plight. He must have felt betrayed by his employer. The govt claims that S'pore is a meritocratic nation and so by natural extension, employers will find the best talent for the job without any discrimination. Frankly, that is just wishful thinking on the part of out govt. It is extremely naïve to believe that personal relations don't play a part in employment. Say a company hires a Filipino manager.....he will try his best to hire his countrymen since they share the same cultural background and mother tongue. This is not meritocracy. This is pure stupidity of our national policies.
Like you said, how can S'poreans have more babies when our livelihood is in danger? I guess that the a key downside to paying our ministers and senior civil servants outrageous salaries......they begin to live in their own world.
TY
Monday, May 24, 2010
Security of employment
Jobs are no long secure in Singapore due to the following reasons:
a) global competition
b) outsourcing of jobs in public sector
c) easy entry of foreign workers
d) pro-business environment
e) weak protection of workers and managers
I cite the case of a friend who lost a job after 11 years due to a change of management, as the new management wish to bring in his buddies. The friend had a good testimonial from the previous management. He was given only 3 months of salary as a severence package. He has a family and an elderly mother to support.
In an environment where jobs are not secure, it is important to avoid making financial commitment, such as:
a. buying an expensive home on mortgage
b. raising a family.
Perhaps, it is not necessary for me to raise these points, as many Singpoareans are aware about the sitaution and have decided not to get married or to have children. This is probably the reason why Singapore has perhaps the lowest birth rate among all countries in the world. This is due to the lack of employment security and the high cost of living in Singapore.
It is important for each person to have a large emergency fund, comprising of personal savings of up to six months of earnings. This fund may have to be drawn down in an emergency. It should be kept in liquid form, and not invested in a inflexible investment, such as a life assurance policy. Read my tips in my book, Practical Guide on Financial Plannng.
For older people who are already committed to a expensive mortgage and a family, it is time to stop further commitments and to build up the emergency fund early. Search Youtube for the videos by Suze Osman, who is a presenter in CNBC programme. She has been giving the same advice for the past two years, i.e. build an emergency fund.
Tan Kin Lian
a) global competition
b) outsourcing of jobs in public sector
c) easy entry of foreign workers
d) pro-business environment
e) weak protection of workers and managers
I cite the case of a friend who lost a job after 11 years due to a change of management, as the new management wish to bring in his buddies. The friend had a good testimonial from the previous management. He was given only 3 months of salary as a severence package. He has a family and an elderly mother to support.
In an environment where jobs are not secure, it is important to avoid making financial commitment, such as:
a. buying an expensive home on mortgage
b. raising a family.
Perhaps, it is not necessary for me to raise these points, as many Singpoareans are aware about the sitaution and have decided not to get married or to have children. This is probably the reason why Singapore has perhaps the lowest birth rate among all countries in the world. This is due to the lack of employment security and the high cost of living in Singapore.
It is important for each person to have a large emergency fund, comprising of personal savings of up to six months of earnings. This fund may have to be drawn down in an emergency. It should be kept in liquid form, and not invested in a inflexible investment, such as a life assurance policy. Read my tips in my book, Practical Guide on Financial Plannng.
For older people who are already committed to a expensive mortgage and a family, it is time to stop further commitments and to build up the emergency fund early. Search Youtube for the videos by Suze Osman, who is a presenter in CNBC programme. She has been giving the same advice for the past two years, i.e. build an emergency fund.
Tan Kin Lian
Minimum wage
The government leaders have been telling the people that a minimum wage will cause the jobs to be lost. This is only partly true; largely, it is false.
A minimum wage is necessary to ensure that the worker earns enough to pay for the cost of living by doing a full day's work. If the wage is below the minimum, the worker has to work longer hours. This will cause other people to be unemployed. For a stable society, we need to have most people, who are able and willing to work, to be able to find a job and earn enough enough to raise a family and be a contributing member of society.
A decent wage, as opposed to a sub-minimum wage, does not cause the loss of jobs. Wages are only one component of the total cost of production. The other components are cost of property (i.e. rental), government taxes and shareholder profits. If wages are too low, more of the cost goes towards rental and profits. The imbalance, between wages and rental, is one factor leading to the high property prices in Singapore.
Many of the jobs in a country are in the service sector. They are part of the domestic economy. They have to be done in the country and cannot be lost. Examples are education, health, transport and personal services. A minimum wage to these sectors affect all businesse and will be added to the cost of providing the service. It can be kept low, if the other components, such as rental, taxes and profits, are kept at the fair market levels - and are not inflated due to the failure of the market, e.g. if there is a near monopoly.
Many global businesses come to Singapore to enjoy the low wages contributed by foreign workers who work in Singapore. The social cost of these foreign workers have not been properly factored - i.e. the overcrowding and the strain on the public services (i.e education, health and transport). If these are properly accounted, the strategy of low wages, i.e. no minimum wage, in creating jobs in Singapore is not compelling.
I believe that it is time for a minimum wage to be introduced in Singapore and for the market in labour to find its new level. I believe that we are among the few developed economies that do not have a minimum wage.
Tan Kin Lian
A minimum wage is necessary to ensure that the worker earns enough to pay for the cost of living by doing a full day's work. If the wage is below the minimum, the worker has to work longer hours. This will cause other people to be unemployed. For a stable society, we need to have most people, who are able and willing to work, to be able to find a job and earn enough enough to raise a family and be a contributing member of society.
A decent wage, as opposed to a sub-minimum wage, does not cause the loss of jobs. Wages are only one component of the total cost of production. The other components are cost of property (i.e. rental), government taxes and shareholder profits. If wages are too low, more of the cost goes towards rental and profits. The imbalance, between wages and rental, is one factor leading to the high property prices in Singapore.
Many of the jobs in a country are in the service sector. They are part of the domestic economy. They have to be done in the country and cannot be lost. Examples are education, health, transport and personal services. A minimum wage to these sectors affect all businesse and will be added to the cost of providing the service. It can be kept low, if the other components, such as rental, taxes and profits, are kept at the fair market levels - and are not inflated due to the failure of the market, e.g. if there is a near monopoly.
Many global businesses come to Singapore to enjoy the low wages contributed by foreign workers who work in Singapore. The social cost of these foreign workers have not been properly factored - i.e. the overcrowding and the strain on the public services (i.e education, health and transport). If these are properly accounted, the strategy of low wages, i.e. no minimum wage, in creating jobs in Singapore is not compelling.
I believe that it is time for a minimum wage to be introduced in Singapore and for the market in labour to find its new level. I believe that we are among the few developed economies that do not have a minimum wage.
Tan Kin Lian
Wages of older workers
This letter appears in the Online Forum of the Straits Times on 24 May 2010.
I refer to the letter entitled “Less than 3% of private firms cut older worker’s wages” (ST 20 May) sent in jointly by the Singapore National Employer’s Federation, Ministry of Manpower and the National Trades Union Congress.
Employers in Singapore have the flexibility to terminate an older worker for a variety of reasons, including restructuring and outsourcing. This has been practiced quite often in the private and public sectors. There is little need for them to keep workers until age 60 to have their wages reduced under the Retirement Age Act. This probably account for the low percentage of employers exercising this wage cut.
I cite the case of a friend who has worked for 11 years in regional business development for a local insurance company. He was rated as a good performer by the previous management. Recently, with a change of top management, he was asked to leave and was offered a compensation of only 3 months of salary.
He asked for my assistance on how to make an appeal to the Ministry of Manpower, as he still has a family and an sick elderly mother to support.
I hope that our tripartite partners will recognise this type of difficulty faced by many Singaporeans. The current employment practices offer little protection to workers, especially those at the older wages, when the top management outsource the work to contractors to reduce their cost or replace senior people with their own buddies.
It is time for Singapore to consider a minimum wage so that the wages of our worker do not continue to stagnate due to outsourcing to contractors who can employ foreign workers at lower cost. There is also a need to set a certain level of retrenchment benefit for all workers, including managers, to protect them against being replaced for reasons that are not related to bad performance.
Tan Kin Lian
I refer to the letter entitled “Less than 3% of private firms cut older worker’s wages” (ST 20 May) sent in jointly by the Singapore National Employer’s Federation, Ministry of Manpower and the National Trades Union Congress.
Employers in Singapore have the flexibility to terminate an older worker for a variety of reasons, including restructuring and outsourcing. This has been practiced quite often in the private and public sectors. There is little need for them to keep workers until age 60 to have their wages reduced under the Retirement Age Act. This probably account for the low percentage of employers exercising this wage cut.
I cite the case of a friend who has worked for 11 years in regional business development for a local insurance company. He was rated as a good performer by the previous management. Recently, with a change of top management, he was asked to leave and was offered a compensation of only 3 months of salary.
He asked for my assistance on how to make an appeal to the Ministry of Manpower, as he still has a family and an sick elderly mother to support.
I hope that our tripartite partners will recognise this type of difficulty faced by many Singaporeans. The current employment practices offer little protection to workers, especially those at the older wages, when the top management outsource the work to contractors to reduce their cost or replace senior people with their own buddies.
It is time for Singapore to consider a minimum wage so that the wages of our worker do not continue to stagnate due to outsourcing to contractors who can employ foreign workers at lower cost. There is also a need to set a certain level of retrenchment benefit for all workers, including managers, to protect them against being replaced for reasons that are not related to bad performance.
Tan Kin Lian
Ponzi Scheme
Here is an article to explain how the ponzi scheme started.
My comment
A ponzi scheme usually offer an attractive return. The operator take the money from the investors to pay back the earlier investors. As long as the ponzi scheme continues to grow exponentially in size, the operator is able to carry on. During this time, the operator continues to siphon off the money. When the new money stops coming in, the ponzi collapses.
My comment
A ponzi scheme usually offer an attractive return. The operator take the money from the investors to pay back the earlier investors. As long as the ponzi scheme continues to grow exponentially in size, the operator is able to carry on. During this time, the operator continues to siphon off the money. When the new money stops coming in, the ponzi collapses.
Sunday, May 23, 2010
High insurance premium for school bus
Mr Tan
Currently for school buses insurance had gone up significantly and beside this NTUC are now selecting their customers i.e those with accident (be it only 1) during the year NTUC at the moment decide not to cover the policy instead of qouting a price. ( as being part Government shouldnt NTUC be helping instead of pushing them away and just drop them?)
Currently in the market we only have NTUC, AXA and Liberty for school buses insurance coverage. However, with NTUC choosing their customer the other two companies will increase their price higher and this vicious circle will cause a huge problem as drivers cannot afford it and their "rice bowl" will be a big issue as most of them have only lower primary level and without insurance there will be no road tax and no where to turn to for help.
Please Mr Tan, I would really like to help the drivers but could you point me to the right direction and what to do? On behalf of the drivers - We thank you for your advise and appreciate any help you are able to offer.
REPLY
I suggest that you write a letter to the newspapers (straits times or zhao bao) to highlight your dilemma. I hope that the public attention will get the authority (i.e. MAS or LTA) to find a solution.
Currently for school buses insurance had gone up significantly and beside this NTUC are now selecting their customers i.e those with accident (be it only 1) during the year NTUC at the moment decide not to cover the policy instead of qouting a price. ( as being part Government shouldnt NTUC be helping instead of pushing them away and just drop them?)
Currently in the market we only have NTUC, AXA and Liberty for school buses insurance coverage. However, with NTUC choosing their customer the other two companies will increase their price higher and this vicious circle will cause a huge problem as drivers cannot afford it and their "rice bowl" will be a big issue as most of them have only lower primary level and without insurance there will be no road tax and no where to turn to for help.
Please Mr Tan, I would really like to help the drivers but could you point me to the right direction and what to do? On behalf of the drivers - We thank you for your advise and appreciate any help you are able to offer.
REPLY
I suggest that you write a letter to the newspapers (straits times or zhao bao) to highlight your dilemma. I hope that the public attention will get the authority (i.e. MAS or LTA) to find a solution.
Taking a mortgage
First of all, I'll like to thank you for some of the sound advice that you have posted on your blog. I'm an avid reader of your blog and also someone who had bought and like your financial planning book. I am currently staying in a 3 room HDB flat and planning to upgrade to a 5 room HDB this year. I have some questions that I would love to hear from your advice
1. Mortgage - floating vs fixed. What is your take on this given the current situation?
Reply: I think that the mortgages in Singapore are all on floating rates. I am not aware of any bank that offers fixed rate morgage. If you have found one ,give me the terms for analysis
2. Mortgage - lock period, is a short or long period better?\
Reply: same comment as for 1.
3. We are not sure if we should repay our loan as fast as possible (i.e. using our entire monthly cpf contribution for repayment) or if we should stretch our loan tenure for a longer period for reasons such as to use our CPF for any investments (e.g. NTUC growth, etc) with the hope of getting returns higher than our mortgage rate or to build a buffer in ordinary account for repayment in case anyone or both of us goes jobless, so that we do not need to fork out cash.
Reply: You should keep 6 months of repayment as a buffer in the CPF. If you have cash flow problem, you can pay from this buffer.
4. Is it better for us to deduct everything we have in our CPF for housing purchase or should we transfer some if not all of our CPF for investments such as NTUC growth, etc with the hope of getting returns higher than our mortgage rate?
Reply: Do not invest in a new Growth policy, as it is rigid and does not offer an attractive yield.
5. Me and my wife's used a sum of our CPF to purchase NTUC growth prior to buying our 3 room HDB. Now that we are planning to buy a 5 room HDB, should we terminate our NTUC growth plans and use that amount to pay for the HDB? We have sufficient CPF to pay for the 15% downpayment, but I'm thinking of paying more and borrowing less from the bank. Would you know for early termination, would I at least have my sum invested back? Is what I'm thinking of doing advisable?
Reply: You can a poor deal with you terminate the Growth policy. It is usually better to keep it to maturity, rather than terminate it early. You should ask them to quote you the cash value now, and the projected cash value on maturity to make a proper decision.
1. Mortgage - floating vs fixed. What is your take on this given the current situation?
Reply: I think that the mortgages in Singapore are all on floating rates. I am not aware of any bank that offers fixed rate morgage. If you have found one ,give me the terms for analysis
2. Mortgage - lock period, is a short or long period better?\
Reply: same comment as for 1.
3. We are not sure if we should repay our loan as fast as possible (i.e. using our entire monthly cpf contribution for repayment) or if we should stretch our loan tenure for a longer period for reasons such as to use our CPF for any investments (e.g. NTUC growth, etc) with the hope of getting returns higher than our mortgage rate or to build a buffer in ordinary account for repayment in case anyone or both of us goes jobless, so that we do not need to fork out cash.
Reply: You should keep 6 months of repayment as a buffer in the CPF. If you have cash flow problem, you can pay from this buffer.
4. Is it better for us to deduct everything we have in our CPF for housing purchase or should we transfer some if not all of our CPF for investments such as NTUC growth, etc with the hope of getting returns higher than our mortgage rate?
Reply: Do not invest in a new Growth policy, as it is rigid and does not offer an attractive yield.
5. Me and my wife's used a sum of our CPF to purchase NTUC growth prior to buying our 3 room HDB. Now that we are planning to buy a 5 room HDB, should we terminate our NTUC growth plans and use that amount to pay for the HDB? We have sufficient CPF to pay for the 15% downpayment, but I'm thinking of paying more and borrowing less from the bank. Would you know for early termination, would I at least have my sum invested back? Is what I'm thinking of doing advisable?
Reply: You can a poor deal with you terminate the Growth policy. It is usually better to keep it to maturity, rather than terminate it early. You should ask them to quote you the cash value now, and the projected cash value on maturity to make a proper decision.
Principal Protected Investments
Read this article. These investments are not safe and do not offer an attractive yield.
My comment
My wife and daughter were sold several of these products during the past decade. They were told that they are "safe" and have the potential to earn a good return, if ........... In all cases, they just got back their capital after waiting for five years and lose the interest that could have been earned.
Avoid all structured products. Read the tips in my book, Practical Guide on Financial Planning.
My comment
My wife and daughter were sold several of these products during the past decade. They were told that they are "safe" and have the potential to earn a good return, if ........... In all cases, they just got back their capital after waiting for five years and lose the interest that could have been earned.
Avoid all structured products. Read the tips in my book, Practical Guide on Financial Planning.
Best 40 cities to live in
Singapore is ranked #7 as follows:
1. New York
2. London
3. Paris
4. Tokyo
5. Los Angeles
6. Brussels
7. Singapore
8. Berlin
9. Beijing
10. Toronto
Knight Frank and Citi have put together a rankings of the world's best cities to live in, and have provided a truly global hit list of where you should consider moving to next.
http://www.businessinsider.com/best-cities-on-earth-2010-5
1. New York
2. London
3. Paris
4. Tokyo
5. Los Angeles
6. Brussels
7. Singapore
8. Berlin
9. Beijing
10. Toronto
Knight Frank and Citi have put together a rankings of the world's best cities to live in, and have provided a truly global hit list of where you should consider moving to next.
http://www.businessinsider.com/best-cities-on-earth-2010-5
Saturday, May 22, 2010
Fragile global economy
The Greek cisis is a bad sign for the global economy. Many countries have large budget deficit and depend on borrowings to finance the deficit. Lenders are now worried that these countries cannot repay their debt.
The crisis is now affecting Europe. It is likely to spread to other countries. The countries that have large budget deficits that depend on borrowings include the USA, UK and Japan. Investors may lose confidence in these countries and lead to another crisis.
Look at what happened to Dubai and now Greece. It is a matter of time before the loss of confidence spread to other countries.
The global economy is fragile. It is bad to depend on private money to fund government deficits. A lot of the private money are in hedge funds. I consider these hedge funds to be financial terrorists. They can bring down a currency or a country, so as to make a large profit from the destruction. I think that hedge funds should be banned.
Tan Kin Lian
The crisis is now affecting Europe. It is likely to spread to other countries. The countries that have large budget deficits that depend on borrowings include the USA, UK and Japan. Investors may lose confidence in these countries and lead to another crisis.
Look at what happened to Dubai and now Greece. It is a matter of time before the loss of confidence spread to other countries.
The global economy is fragile. It is bad to depend on private money to fund government deficits. A lot of the private money are in hedge funds. I consider these hedge funds to be financial terrorists. They can bring down a currency or a country, so as to make a large profit from the destruction. I think that hedge funds should be banned.
Tan Kin Lian
Think out of the box
20 people responded to the contest to find a "out of the box" solution shown here. Most of the suggestions are:
a) ask X to remarry
b) buy a single's flat
X is not prepared to remarry just to keep the flat. He finds it costly to sell his flat and buy a new flat under the single's scheme.
I wish to award my prize (Tangram book) to the person who submitted this suggestion:
Quote
1. Mr. X appears to be occupying the existing flat under Public Scheme with a CPF Housing Grant for Family which is $30,000. HDB will consider the case of married child moving out based on the case. See http://www.hdb.gov.sg/fi10/fi10326p.nsf/w/ChgOwnerMarriedChildMoving?OpenDocument
2. If (1) above does not work, appeal to HDB to change the scheme type to Single Singapore Citizen Scheme with CPF Housing Grant of $11,000. See http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatSingleScheme?OpenDocument and be willing to return (30000-11000)=$19,000 back to HDB.
3. If (1) and (2) does not work, the simplest solution is to move to the daughter's new flat. There will be lack of privacy and independence but guarantees to provide a roof for Mr. X without hassle.
Unquote
What can the HDB CEO do to help X? He could consider the appeal and do not take any decision for a long time. X can continue to live in the HDB flat while the appeal is being considered.
Tan Kin Lian
a) ask X to remarry
b) buy a single's flat
X is not prepared to remarry just to keep the flat. He finds it costly to sell his flat and buy a new flat under the single's scheme.
I wish to award my prize (Tangram book) to the person who submitted this suggestion:
Quote
1. Mr. X appears to be occupying the existing flat under Public Scheme with a CPF Housing Grant for Family which is $30,000. HDB will consider the case of married child moving out based on the case. See http://www.hdb.gov.sg/fi10/fi10326p.nsf/w/ChgOwnerMarriedChildMoving?OpenDocument
2. If (1) above does not work, appeal to HDB to change the scheme type to Single Singapore Citizen Scheme with CPF Housing Grant of $11,000. See http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatSingleScheme?OpenDocument and be willing to return (30000-11000)=$19,000 back to HDB.
3. If (1) and (2) does not work, the simplest solution is to move to the daughter's new flat. There will be lack of privacy and independence but guarantees to provide a roof for Mr. X without hassle.
Unquote
What can the HDB CEO do to help X? He could consider the appeal and do not take any decision for a long time. X can continue to live in the HDB flat while the appeal is being considered.
Tan Kin Lian
Case study - flexibility
12 people participated in the survey. Here are the results.
Case Study
X is the person in charge of convening a meeting of owners of a condominium that wishes to appoint a sales committee for an enbloc sales. The law requires 30% of the owners to be present for the meeting to start at the "appointed time". At the time of the meeting, the quorum of the meeting was not met. However, some owners appeared with the next 15 minutes and the quorum was met. The law did not state whether the meeting cound be extended beyond the appointed time, but also did not state that any extension was disallowed. Should X allowed the meeting to start later, when the quorum was met? Give your views in this survey
Case Study
X is the person in charge of convening a meeting of owners of a condominium that wishes to appoint a sales committee for an enbloc sales. The law requires 30% of the owners to be present for the meeting to start at the "appointed time". At the time of the meeting, the quorum of the meeting was not met. However, some owners appeared with the next 15 minutes and the quorum was met. The law did not state whether the meeting cound be extended beyond the appointed time, but also did not state that any extension was disallowed. Should X allowed the meeting to start later, when the quorum was met? Give your views in this survey
Expensive computerisation projects
I heard about companies spending several tens of million dollars in computerisation projects. This is far too expensive. Most of the money goes towards paying consultants to advice on workflow and customisation of system.
My friend, who worked in a large insurance company, told me that they spend more than 100 million to computerise their operations and the new computer system is still not working well. This is mind boggling. The money comes from the bonus of their policyholders!
Sometimes, I wonder if the board and top management is happy to spend so much money and if they are preapred to consider a lower cost option, if available. I believe that a large organisation can cut its computerisation budget by 50%, if they adopt a sensible approach towards computerisation. Apart from the cost savings, they will also be able to implement the new system more quickly, have less hassle and a higher chance of success.
But first, they must be keen to explore this possibility. If they prefer to spend big budget, there will always be the opportunity to make a big splash.
Tan Kin Lian
My friend, who worked in a large insurance company, told me that they spend more than 100 million to computerise their operations and the new computer system is still not working well. This is mind boggling. The money comes from the bonus of their policyholders!
Sometimes, I wonder if the board and top management is happy to spend so much money and if they are preapred to consider a lower cost option, if available. I believe that a large organisation can cut its computerisation budget by 50%, if they adopt a sensible approach towards computerisation. Apart from the cost savings, they will also be able to implement the new system more quickly, have less hassle and a higher chance of success.
But first, they must be keen to explore this possibility. If they prefer to spend big budget, there will always be the opportunity to make a big splash.
Tan Kin Lian
Friday, May 21, 2010
Resort World Sentosa
I attended a company dinner held at the conference center in Resort World Sentosa recently. This is my first visit to Sentosa after the integrated resort opened. Here are some photos (for the benefit of those who have not yet visited the resort).
I was quite surprised to see that the place was quite attractive and there was a large crowd in the hotels and shops. I did not enter the casino (as I refused to pay $100), so I don't know if it was very crowded inside as well.
Goh Keng Swee - The Star
Read this article by Seah Cheang Nee published in The Star, Malaysia. The writer was previously the editor of a newspaper in Singapore. He has a good knowledge of Singapore's history.
Web consultation (skin problems)
A skin specialist plans to set up an innovative service to provide consultation on skin problems through the internet. Details are shown here.
I am helping the specialist to find out the market acceptance for this type of service. Please participate in this survey.
UPDATE
I receive only 6 reponses. I hope to get more responses to refleclt a more reliable sample. Please participate.
I am helping the specialist to find out the market acceptance for this type of service. Please participate in this survey.
UPDATE
I receive only 6 reponses. I hope to get more responses to refleclt a more reliable sample. Please participate.
Interacting with customers on feedback
I have posted articles on my experience as a customer interacting with a few large organisations (i.e. CISCO, Starhub, DBS and Singapore Airlines). CISCO took the trouble to contact me and talk to me. I did not hear from the other organisations.
Standard Chartered Bank
Dear Mr. Tan,
I have 4 banks personal account. I wish to highlight that SCB service is the best. I have encounter some transfer fund issue last year and due to the error of the bank. The SQ manager called me and followed up with a apology letter thereafter sending a wine hamper to my house.
I visited the branch in Tampines and Raffles Place, their staff is very attentive during my opening account and applying credit card I like their recent launch of internet payment of credit card to other bank credit card bills. This save me a lot of time rather issuing a cheques or queueing at the AXS machine for payment.
Further more, I can just do bill payment post dated before the due date once I login to the account. This can reduce oversight of payment and incurred interest fee and appealing process. I hope other local bank can think out of box rather than limited the credit card payment from their own bank.
I have also compared all the internet banking service, so far SCB is the simplest and easy to get transaction done within a few minutes.
FT
My comments
Well done to Standard Chartered Bank. I also observe that they did not sell any of the credit linked notes that caused losses to the bank customers. I like their advertisement on their commitment to look after the welfare of their customers. It sets a good goal for them to live up to.
I have 4 banks personal account. I wish to highlight that SCB service is the best. I have encounter some transfer fund issue last year and due to the error of the bank. The SQ manager called me and followed up with a apology letter thereafter sending a wine hamper to my house.
I visited the branch in Tampines and Raffles Place, their staff is very attentive during my opening account and applying credit card I like their recent launch of internet payment of credit card to other bank credit card bills. This save me a lot of time rather issuing a cheques or queueing at the AXS machine for payment.
Further more, I can just do bill payment post dated before the due date once I login to the account. This can reduce oversight of payment and incurred interest fee and appealing process. I hope other local bank can think out of box rather than limited the credit card payment from their own bank.
I have also compared all the internet banking service, so far SCB is the simplest and easy to get transaction done within a few minutes.
FT
My comments
Well done to Standard Chartered Bank. I also observe that they did not sell any of the credit linked notes that caused losses to the bank customers. I like their advertisement on their commitment to look after the welfare of their customers. It sets a good goal for them to live up to.
MRT Circle Line
This is the display panel on the MRT train running on the Circle Line. It shows the time for most of the way. The display changes to the name of the station only close to arrival. This is not useful.
A useful system is: show the name of the next station and the side that the door will be opening. It should appear immediately on leaving the previous station.
Most commuters already have a watch and mobile phone that shows the time.
MRT NS Line
There are two systems to dispaly the name of the next station for trains on the North South line.
The display panel show the station name in words and also indicates the side where the door will open.
The lighted route map shows the lights for the stations that have passed.
Both display systems on the train has been out -of-order for over two weeks. See the photos.
I find the light route map to be unnecessary. The display panel should be sufficient for this purpose.
A simpler system is less costly and less likely to fail.
Thursday, May 20, 2010
Excellent service recovery by CISCO
I posted a blog to share my bad experience with replacing a faulty videocam. I received an e-mail from the customer advocacy senior manager of CISCO asking to talk to me. We had a conversation at the arranged time. He listened attentively and positively to my experience and suggestions. He found several of the suggestions to be practical and useful and will be implementing them.
From my past experience, this is one of the rare occasions that the customer service manager is interested to listen, and really listen, to the customer. I hope that this excellent example of service recovery will be emulated by other organisations. Well done to CISCO.
I also hope that CISCO will act promptly to simplify its process to make it easy for its customers to submit their feedback and claim for replacement of faulty products.
Tan Kin Lian
From my past experience, this is one of the rare occasions that the customer service manager is interested to listen, and really listen, to the customer. I hope that this excellent example of service recovery will be emulated by other organisations. Well done to CISCO.
I also hope that CISCO will act promptly to simplify its process to make it easy for its customers to submit their feedback and claim for replacement of faulty products.
Tan Kin Lian
Why we should identifying ourselves as souls?
Extract from Tommy Wong's book, "Wisdom on How to Live Life"
Tom: What is the problem identifying ourselves as the body?
Guru: If we identify ourselves with the body only, then we won’t want the body to die because when the body dies, it’s also the end of our beings.
Tom: Yes, that’ll be a problem, because we don’t want to lose our beings.
Guru: Exactly! So the problem is after we’re born, there is no way not to die.
Tom: Sounds like we’re at a death trap. Is there any way out?
Guru: Humans are blessed beings. So how can the Divine lay a death trap for us?
Tom: But the body will die, and there is no way out!
Guru: Bingo, the secret is that we’re not the body.
Tom: Oh yes, you said that we’re the soul and not the body.
Guru: Well remembered!
Tom: How will that help us?
Guru: If we identify ourselves as souls and our souls continue to live even after the death of our bodies, then we’ll not be too concerned with the death of our bodies.
Tommy Wong
Tommy Wong's book can be purchased online here.
Tom: What is the problem identifying ourselves as the body?
Guru: If we identify ourselves with the body only, then we won’t want the body to die because when the body dies, it’s also the end of our beings.
Tom: Yes, that’ll be a problem, because we don’t want to lose our beings.
Guru: Exactly! So the problem is after we’re born, there is no way not to die.
Tom: Sounds like we’re at a death trap. Is there any way out?
Guru: Humans are blessed beings. So how can the Divine lay a death trap for us?
Tom: But the body will die, and there is no way out!
Guru: Bingo, the secret is that we’re not the body.
Tom: Oh yes, you said that we’re the soul and not the body.
Guru: Well remembered!
Tom: How will that help us?
Guru: If we identify ourselves as souls and our souls continue to live even after the death of our bodies, then we’ll not be too concerned with the death of our bodies.
Tommy Wong
Tommy Wong's book can be purchased online here.
Wednesday, May 19, 2010
Customer Service Portal
I am developing a customer service portal for big organisations to put up their general enquiry form. This allows their customers to provide brief details of their queries and for the customer service officer to call the customer with the answer. This will reduce the waiting time at the call center during peak hours. It will also improve customer service. More details of this portal can be found here.
This portal can be used by many organisations. The customer will find it easy to contact many organisations at the same portal and be familiar with one standard interface.
Tan Kin Lian
This portal can be used by many organisations. The customer will find it easy to contact many organisations at the same portal and be familiar with one standard interface.
Tan Kin Lian
SMS Response
If you wish to receive responses by SMS to a promotion, contest, event, registration or other activity, you can try this service. It is low cost and easy to set up. It can be used by a business or an individual.
Calling NTUC Income
Here is my experience in calling NTUC Income during a busy period. There was no pressing of button and irrelevant messages, so there is no hassle for the customer. I am told that I have to wait 3 minutes for my call to be attended. This is better than being put on hold for an unspecified period. They also provide an option for the call center to call back the customer, which is a good feature.
I decided not to wait and to call back later, when the call center is free.
I decided not to wait and to call back later, when the call center is free.
Easysearch Portal
There are several applications on this portal of general interest to the public. Try it.
http://www.easysearch.sg/Apps.aspx
http://www.easysearch.sg/Apps.aspx
Outsourcing
Many jobs in the private and public sector has been outsourced during the past decade. In the past, these organisations employ clearners, security guards and technicians and paid fair wages relative to the other "core workers" in their organisations. The workers are protected by the collective bargaining of wages in the organisations.
After outsourcing, these organisations were able to reduce their operating cost. The contractors who won the jobs were able to employ foreign workers or re-emply the retrenched workers at lower wages or to work for longer hours. This is a key contributor for the stagnation of wages in Singapore during the past decade.
The customers do not benefit much from the reduction in cost. Most of the benefits accrue to the shareholders and top managers of these organisations. This accounts for the widening gap between the high and low income earners.
While wages remain stagnant, the cost of living continues to increase. This makes life very difficult for many Singaporeans.
I hope that our top leaders will realise that this is a bad trend and that outsourcing is a source of this problem. To correct this situation, there should be a minimum wage for all workers and that the public sector should set an example by insisting on an expected standard of service and be willing to pay fair fees for outsourced work.
Tan Kin Lian
After outsourcing, these organisations were able to reduce their operating cost. The contractors who won the jobs were able to employ foreign workers or re-emply the retrenched workers at lower wages or to work for longer hours. This is a key contributor for the stagnation of wages in Singapore during the past decade.
The customers do not benefit much from the reduction in cost. Most of the benefits accrue to the shareholders and top managers of these organisations. This accounts for the widening gap between the high and low income earners.
While wages remain stagnant, the cost of living continues to increase. This makes life very difficult for many Singaporeans.
I hope that our top leaders will realise that this is a bad trend and that outsourcing is a source of this problem. To correct this situation, there should be a minimum wage for all workers and that the public sector should set an example by insisting on an expected standard of service and be willing to pay fair fees for outsourced work.
Tan Kin Lian
Restructuring of company
I know of a manager who recently lost his job (after 11 years) due to a change in top management. The new management wanted to resctructure the company (which is an excuse for bringing in his buddies) and asked him to leave. He was offered only 3 months of salary for 11 years of service. The retrenched manager had no option, but to accept this poor package. His termination was not due to poor performance, as he had received a good testimonial from the previous CEO (who has since retired) for his 11 years of service.
This is a need for better protection of workers (including managers) in Singapore from unfair employment practice. The law should provide a fair rate of retrenchment benefit for termination due to reasons other than poor performance.
Tan Kin Lian
This is a need for better protection of workers (including managers) in Singapore from unfair employment practice. The law should provide a fair rate of retrenchment benefit for termination due to reasons other than poor performance.
Tan Kin Lian
SIA Krisflyer website
I spent more than 1 hour to reset the PIN for my Krisflyer account. I called the call center more than 5 times and got the assistance of the staff who was helpful and patient.
However, the website behaved erratically and baffled me and the staff. The problem with the website was worsened by the "security measures" introduced to "protect the interest of the customer". Actually, these measures were not necessary and made the website difficult to use. It also made it difficult to change the PIN. Some of these measures are:
a) freeze the login for 24 hours after 3 wrong entry of the PIN
b) verify the date of birth and IC (when the server record was wrong)
c) require the new PIN to be activated within 1 hour of being sent.
d) the website showed different information to me and to the staff who was assisting me.
The staff sent me a total of 4 new PINs to login after the earlier PINs did not work.
This video shows about 5 minutes of the 1 hour episode.
However, the website behaved erratically and baffled me and the staff. The problem with the website was worsened by the "security measures" introduced to "protect the interest of the customer". Actually, these measures were not necessary and made the website difficult to use. It also made it difficult to change the PIN. Some of these measures are:
a) freeze the login for 24 hours after 3 wrong entry of the PIN
b) verify the date of birth and IC (when the server record was wrong)
c) require the new PIN to be activated within 1 hour of being sent.
d) the website showed different information to me and to the staff who was assisting me.
The staff sent me a total of 4 new PINs to login after the earlier PINs did not work.
This video shows about 5 minutes of the 1 hour episode.
Tuesday, May 18, 2010
Experience on call centers
I have created some short videos (less than 5 mins) on my experience in calling the call centers of a few large organisations.
They can be viewed here:
http://www.easysearch.sg/videos/
I hope that the large organisations can understand the frustration and difficulty of their customers in navigating through their automated system, and in listening to irrelevant messages. They should simplify the system to make it easier for their customer to talk to a customer service officer. They should also provide an option in the website for the customer to submit a form and for the call center staff to call back with the answer.
I was quite surprised that the calls were answered quickly for SIA, DBS and Starhub. The customer service officers were helpful and competent. Well done.
Tan Kin Lian
They can be viewed here:
http://www.easysearch.sg/videos/
I hope that the large organisations can understand the frustration and difficulty of their customers in navigating through their automated system, and in listening to irrelevant messages. They should simplify the system to make it easier for their customer to talk to a customer service officer. They should also provide an option in the website for the customer to submit a form and for the call center staff to call back with the answer.
I was quite surprised that the calls were answered quickly for SIA, DBS and Starhub. The customer service officers were helpful and competent. Well done.
Tan Kin Lian
Take early action
An edited version of this letter was publised in the Straits Times on 19 May.
Editor, Forum page
In his letter “Do your checks before investing in land abroad”, Dr. Tan Tee Khoon gave a good description of the mode of operation of land banking schemes. He said “Potential investors may be misled about the prospects of obtaining planning permission or redevelopment”.
While investors should follow the advice of Dr. Tan in doing their checks before making such investments, there is also a need for the authority to play its part.
When the seller knowingly misrepresents a product that is sold to the public, it can be considered as “cheating”. When the cheating involves a large sum of money and many victims, it is necessary for the authority to investigate the complaints and gather evidence to charge the perpetuators in court.
It is better to take early action, before more victims fall into the trap. It is difficult for the public to be savvy in detecting misrepresentations in statements that are published in documents or advertisements.
We read about similar cases in other countries where action is taken by the authority to close down the operation of companies that are suspected of engaging in fraudulent activities. There is also adequate media publicity to warn the public about these operations.
I hope that our authority in Singapore take the appropriate action to prevent more people from being caught in these schemes.
Tan Kin Lian
Editor, Forum page
In his letter “Do your checks before investing in land abroad”, Dr. Tan Tee Khoon gave a good description of the mode of operation of land banking schemes. He said “Potential investors may be misled about the prospects of obtaining planning permission or redevelopment”.
While investors should follow the advice of Dr. Tan in doing their checks before making such investments, there is also a need for the authority to play its part.
When the seller knowingly misrepresents a product that is sold to the public, it can be considered as “cheating”. When the cheating involves a large sum of money and many victims, it is necessary for the authority to investigate the complaints and gather evidence to charge the perpetuators in court.
It is better to take early action, before more victims fall into the trap. It is difficult for the public to be savvy in detecting misrepresentations in statements that are published in documents or advertisements.
We read about similar cases in other countries where action is taken by the authority to close down the operation of companies that are suspected of engaging in fraudulent activities. There is also adequate media publicity to warn the public about these operations.
I hope that our authority in Singapore take the appropriate action to prevent more people from being caught in these schemes.
Tan Kin Lian
Calling SIA Call Center
I called the SIA Call Center to enquire about my Krisflyer points. The experience with the call center was quite satisfactory. The waiting time was short. The automated messages was still frustrating, but not as bad as other large organisations.
However, the experience with the Krisflyer website was quite bad. Read this report.
Tan Kin Lian
However, the experience with the Krisflyer website was quite bad. Read this report.
Tan Kin Lian
Calling DBS Credit Card
I called the DBS call center to enquire about my credit card points. I find the automation system to be quite troublesome. I also get many irrelevant messages. It is quite frustrating.
After pressing the wrong option on 3 attempts, I was directed to a customer service officer. The waiting time was rather short - which was quite surprising.
Watch this video about my experience.
The CSO is helpful and provides good service. The automation system is what caused the trouble. (This comment applies to the automation system used by most large organisations, not just DBS). The system used by DBS to verify the customer is quite frustrating and should be changed.
Tan Kin Lian
After pressing the wrong option on 3 attempts, I was directed to a customer service officer. The waiting time was rather short - which was quite surprising.
Watch this video about my experience.
The CSO is helpful and provides good service. The automation system is what caused the trouble. (This comment applies to the automation system used by most large organisations, not just DBS). The system used by DBS to verify the customer is quite frustrating and should be changed.
Tan Kin Lian
Give better value to consumers
Some people, presumably insurance agents, dislike my postings on the bad practices of life insurance companies (i.e. cut in bonus, high charges, low yields, rejection of claims) and continue to make personal attacks against me in their anonymous postings.
It is better for these people to realise that the life insurance companies should change its bad practices and treat consumers fairly. This would be beneficial for the long term growth of the industry. Any business can thrive only when it offers value to its customers.
I also hope that my postings will prompt the insurance companies to change its products to offer a better return to its policyholders. Lately, I saw from some benefit illustrations that the distribution cost and effect of deduction has been reduced, i.e. give better value to consumers. Although they are still high, it is a step in the right direction. More can be done.
REQUEST. Please do not use this posting as another opportunity to "bash" the insurance agents or products.
Tan Kin Lian
It is better for these people to realise that the life insurance companies should change its bad practices and treat consumers fairly. This would be beneficial for the long term growth of the industry. Any business can thrive only when it offers value to its customers.
I also hope that my postings will prompt the insurance companies to change its products to offer a better return to its policyholders. Lately, I saw from some benefit illustrations that the distribution cost and effect of deduction has been reduced, i.e. give better value to consumers. Although they are still high, it is a step in the right direction. More can be done.
REQUEST. Please do not use this posting as another opportunity to "bash" the insurance agents or products.
Tan Kin Lian
Congential conditions
Hi Mr. Tan,
My student was found to have a hole in the heart in an ECG program initiated by his secondary school. He subsequently underwent heart surgery. He has been active in sports all along so the condition was never detected before.
He has been insured medically since birth. However, the insurance company has refused to pay a single cent towards the medical costs citing congenital cause.
Even the medishield claims [with the same company] were also rejected. Have all the premiums paid by his parents been just money down the drain?
I would like to know if there is any recourse for his parents to relieve them at least a little of the medical expenses.
REPLY
Generally, health insurance policies exclude congenital conditions. The rationale is that people who knows that they have congenital condition are more likely to buy insurance, so the exclusion is to prevent what is called adverse selection.
In some countries, the government insists that congenital conditions must be covered. I think that this is one provision in the new health plan that has recently been passed in US Congress. Unfortunately, we do not have such a requirement by the regulators in Singapore. In my view, the Ministry of health should have insisted that all convenital conditions are covered under Medishiled and private Shield plans - but this was unfortunately not the case.
Although the health plan does not cover congenital conditions, it does cover all of the other illness that are not connected with the congenital conditions, such as infection, injury and others. The premium is used to cover these other conditions.
REPLY
Hi Mr. Tan
Thank you for your kind reply to my query. However, it seems that I can't really do anything to help my student.
I do agree with you that the MOH should look into making congenital cases covered by shield plans. I am sure my student isn't the only case which was not detected at birth and only surfaced much later in life.
However, I'm still upset that the insurance company didn't even bother to give a token sum to help the parents defray costs.
REPLY
Please ask the student to write to the insurance company to request for an ex-gratia payment to cover part of the bill, considering the premiums that have been paid over the years, for which there was (presumably) no claim. If the insurance company reject the request, ask the student to write to the Minister for Health, as the Medishield scheme comes under his Ministry.
My student was found to have a hole in the heart in an ECG program initiated by his secondary school. He subsequently underwent heart surgery. He has been active in sports all along so the condition was never detected before.
He has been insured medically since birth. However, the insurance company has refused to pay a single cent towards the medical costs citing congenital cause.
Even the medishield claims [with the same company] were also rejected. Have all the premiums paid by his parents been just money down the drain?
I would like to know if there is any recourse for his parents to relieve them at least a little of the medical expenses.
REPLY
Generally, health insurance policies exclude congenital conditions. The rationale is that people who knows that they have congenital condition are more likely to buy insurance, so the exclusion is to prevent what is called adverse selection.
In some countries, the government insists that congenital conditions must be covered. I think that this is one provision in the new health plan that has recently been passed in US Congress. Unfortunately, we do not have such a requirement by the regulators in Singapore. In my view, the Ministry of health should have insisted that all convenital conditions are covered under Medishiled and private Shield plans - but this was unfortunately not the case.
Although the health plan does not cover congenital conditions, it does cover all of the other illness that are not connected with the congenital conditions, such as infection, injury and others. The premium is used to cover these other conditions.
REPLY
Hi Mr. Tan
Thank you for your kind reply to my query. However, it seems that I can't really do anything to help my student.
I do agree with you that the MOH should look into making congenital cases covered by shield plans. I am sure my student isn't the only case which was not detected at birth and only surfaced much later in life.
However, I'm still upset that the insurance company didn't even bother to give a token sum to help the parents defray costs.
REPLY
Please ask the student to write to the insurance company to request for an ex-gratia payment to cover part of the bill, considering the premiums that have been paid over the years, for which there was (presumably) no claim. If the insurance company reject the request, ask the student to write to the Minister for Health, as the Medishield scheme comes under his Ministry.
Fraud Alert
Read this article. Be careful about investing in new schemes created to cheat the public.
Cut in policyholder's bonus
Read the letter.
My comment.
This criticism is not confined to one insurer. Many insurers have cut their bonus during a difficult time but are rather slow in restoring their bonus when the market recovered. This is unfair to policyholders, especially those whose policies have matured while the bonus are still not restored.
I agree with the call to MAS to investigate if the insurers have been fair in their treatment of the policyholders.
To avoid this type of unfair treatment, the public should invest in a low cost investment fund, which is transparent and give a better yield, over the long term. This is explained in my book, Practical Guide on Financial Planning.
My comment.
This criticism is not confined to one insurer. Many insurers have cut their bonus during a difficult time but are rather slow in restoring their bonus when the market recovered. This is unfair to policyholders, especially those whose policies have matured while the bonus are still not restored.
I agree with the call to MAS to investigate if the insurers have been fair in their treatment of the policyholders.
To avoid this type of unfair treatment, the public should invest in a low cost investment fund, which is transparent and give a better yield, over the long term. This is explained in my book, Practical Guide on Financial Planning.
Life insurance companies
This article explains that life insurance company works for shareholders and not for customers.
My comment
In the past, most life insurance companies are mutual companies (including cooperatives) that work for the interest of customers. In recent years, most of these companies have become de-mutualised or have started to think about maximising profits. It is dangerous to entrust your long term savings to these companies, especially if they have the discretion to pay a lower rate of bonus to customers.
It is better to invest in a low cost investment fund, which is within your control. This is explained in my book on financial planning.
My comment
In the past, most life insurance companies are mutual companies (including cooperatives) that work for the interest of customers. In recent years, most of these companies have become de-mutualised or have started to think about maximising profits. It is dangerous to entrust your long term savings to these companies, especially if they have the discretion to pay a lower rate of bonus to customers.
It is better to invest in a low cost investment fund, which is within your control. This is explained in my book on financial planning.
Intelligence Quiz online
Try the updated version of the Intelligence Quiz online.
You can also play it on the smart phone by browsing the internet using this link projects.easyapps.sg/eiq. There is a bug when you click on "Answer" but this will be corrected soon.
You can learn the technique to play this puzzle from my book available here.
Give your views of this online game in this survey.
Tip for solving Intelligence Quiz.
1. Look for clues that indicate a fixed house, e.g. first house, second house, last house.
2. Look for clues that is related to an item that has already been identified.
3. Look for clues that exactly fit into the empty slots.
4. By following these steps, you can solve the Intelligence Quiz.
You can also play it on the smart phone by browsing the internet using this link projects.easyapps.sg/eiq. There is a bug when you click on "Answer" but this will be corrected soon.
You can learn the technique to play this puzzle from my book available here.
Give your views of this online game in this survey.
Tip for solving Intelligence Quiz.
1. Look for clues that indicate a fixed house, e.g. first house, second house, last house.
2. Look for clues that is related to an item that has already been identified.
3. Look for clues that exactly fit into the empty slots.
4. By following these steps, you can solve the Intelligence Quiz.
Portal on scams
Hi TKL,
Many Singaporeans I know, are always in the pursuit of material wealth and at times being complacement, only to realise later that they are victims of scams. How nice if we could have a similar portal like this, all under one roof:
http://www.scamwatch.gov.au/content/index.phtml/tag/InvestmentSeminarsRealEstateScams
LN
Many Singaporeans I know, are always in the pursuit of material wealth and at times being complacement, only to realise later that they are victims of scams. How nice if we could have a similar portal like this, all under one roof:
http://www.scamwatch.gov.au/content/index.phtml/tag/InvestmentSeminarsRealEstateScams
LN
Starhub Call Center
I called Starhub at their call center to enquire about Open Net, the new national broadband. Here is my experience.
I am quite surprised that the call is answered quick quickly (after going through 3 minutes of navigating through their system) and the staff is quite knowledgeable. So, apart from the automated messages (which is quite frustrating and time wasting), the service is quite good. In the past, I have to wait a long time to be answered by a person, but on this occasion, it was quite fast.
Many large organisations require customers to suffer the hassle of navigating through their automated system, so this is not unique to Starhub.
I am quite surprised that the call is answered quick quickly (after going through 3 minutes of navigating through their system) and the staff is quite knowledgeable. So, apart from the automated messages (which is quite frustrating and time wasting), the service is quite good. In the past, I have to wait a long time to be answered by a person, but on this occasion, it was quite fast.
Many large organisations require customers to suffer the hassle of navigating through their automated system, so this is not unique to Starhub.
Monday, May 17, 2010
Poor customer service (HP)
Here is another example of poor customer service. Most big organisations have a bad call center that makes life difficult for customers through the bad use of techbology.
Courage and dare to change
I have heard these phrases used on many occasions, "be careful" and "don't down the slippery slope". They usually come out from people who are extremely cautious and do not wish to change the status quo. This attitude reflects the mindset of many Singaporeans.
I wish to quote the words of Dr. Goh Keng Swee in his last speech to Parliament in 1984.
Quote
Prudence does not mean that one must always take counsel of one's fears. In the course of our political struggles, we learnt tht in a desperate situation timidity leads to disaster. Safety can be won only by daring."
Unquote
I wish to quote the words of Dr. Goh Keng Swee in his last speech to Parliament in 1984.
Quote
Prudence does not mean that one must always take counsel of one's fears. In the course of our political struggles, we learnt tht in a desperate situation timidity leads to disaster. Safety can be won only by daring."
Unquote
Tips with your money
Here are 10 important tips.
My tips on insurance and finance can be found in Practical Guide on Financial Planning.
My tips on insurance and finance can be found in Practical Guide on Financial Planning.
Medical expenses of parents
Dear Mr. Tan,
Thank you for your many insightful postings, I believe many people benefit from your blog.
My parents, who are current in their mid-sixties, are working class people, who worked hard to bring up my siblings and I. They don't have much savings, nor much in their medisave accounts. I don't believe their included under Eldershield.
Is there a good way to plan for their future medical needs? Based on some earlier posts on your blog, insurance for the elderly seems to be expensive. They'd probably exclude coverage on what my parents really need coverage on (my dad has a history of hypertension, so I believe all heart conditions are excluded?).
So far, I can only think of setting aside a lumpsum of cash in FD, as an emergency fund. However, being of limited means, I am not sure how much to set aside as well. I've taken a look at the MOH medical bills, and wonder which bills to take into consideration. I suppose I should also need to take into consideration my medisave savings, since they can be used for my parents.
REPLY
You can top up the Medisave account of your parents and enjoy some tax relief. Your parents can use the Medisave to buy Medishield or pay their medical bills out of Medisave, if they are not insured.
Most importantly, they should go to a subsidised ward if they fall ill, as the cost is much lower than a non-subsidised ward or private hospital. The medical care in the subsidised ward is of quite acceptable standard.
I hope that they can stay in good health and do not require hospitalisation.
Thank you for your many insightful postings, I believe many people benefit from your blog.
My parents, who are current in their mid-sixties, are working class people, who worked hard to bring up my siblings and I. They don't have much savings, nor much in their medisave accounts. I don't believe their included under Eldershield.
Is there a good way to plan for their future medical needs? Based on some earlier posts on your blog, insurance for the elderly seems to be expensive. They'd probably exclude coverage on what my parents really need coverage on (my dad has a history of hypertension, so I believe all heart conditions are excluded?).
So far, I can only think of setting aside a lumpsum of cash in FD, as an emergency fund. However, being of limited means, I am not sure how much to set aside as well. I've taken a look at the MOH medical bills, and wonder which bills to take into consideration. I suppose I should also need to take into consideration my medisave savings, since they can be used for my parents.
REPLY
You can top up the Medisave account of your parents and enjoy some tax relief. Your parents can use the Medisave to buy Medishield or pay their medical bills out of Medisave, if they are not insured.
Most importantly, they should go to a subsidised ward if they fall ill, as the cost is much lower than a non-subsidised ward or private hospital. The medical care in the subsidised ward is of quite acceptable standard.
I hope that they can stay in good health and do not require hospitalisation.
Unfair practice of used car dealer
Dear Mr. Tan
I signed a purchase agreement to buy a used vehicle from a large used car dealer whic his a subsidiary of a large motor distributor.
They were unable to attain a loan approval for the vehicle I have purchased. I wanted to to pay in cash but they refuse to complete the deal. No where in the agreement does it that states that there must be a successful loan for the purchase agreement to be valid. I have also paid a $500 deposit.
As they are so big, they don't even need to be under the CASETRUST-SVTA accreditation. In addition, CASE says that they can mediate and if the dealer does not honour the deal, there is nothing CASE can do about it.
Should a consumer back out from a deal, the dealer would sue the the buyer. However, when the dealer refuses to complete the deal, they get away with it. I have spent much time and effort going through many different cars, it doesn't feel good to be taken advantage of.
This is akin to a new car dealer that sells you a "GUARANTEED COE" new car, and just walks away when COE rises.
The dealer knows that a helpless consumer will not pursue their rights if they are being bullied as it costs too much money and time. They are a big company and have the financial clout and legal personnel to corner the consumer into submission.
Hopefully, you can get highlight this on your website and help prevent other consumers from being cornered and bullied by a large MNC.
JS
I signed a purchase agreement to buy a used vehicle from a large used car dealer whic his a subsidiary of a large motor distributor.
They were unable to attain a loan approval for the vehicle I have purchased. I wanted to to pay in cash but they refuse to complete the deal. No where in the agreement does it that states that there must be a successful loan for the purchase agreement to be valid. I have also paid a $500 deposit.
As they are so big, they don't even need to be under the CASETRUST-SVTA accreditation. In addition, CASE says that they can mediate and if the dealer does not honour the deal, there is nothing CASE can do about it.
Should a consumer back out from a deal, the dealer would sue the the buyer. However, when the dealer refuses to complete the deal, they get away with it. I have spent much time and effort going through many different cars, it doesn't feel good to be taken advantage of.
This is akin to a new car dealer that sells you a "GUARANTEED COE" new car, and just walks away when COE rises.
The dealer knows that a helpless consumer will not pursue their rights if they are being bullied as it costs too much money and time. They are a big company and have the financial clout and legal personnel to corner the consumer into submission.
Hopefully, you can get highlight this on your website and help prevent other consumers from being cornered and bullied by a large MNC.
JS
Bad Customer Service (CISCO)
I bought a Flip videocam which was highly recommended on the user reviews. The videocam was easy to use and satisfactory. Unfortunately, it stopped working after two weeks.
I called the manufacturer CISCO on its warranty. I had a difficult time. Here is my experience:
a. It was difficult to communicate with the call center (which was outsourced overseas)
b. Much time was spent to spell out the details for the call center staff to record into their system.
c. I was asked later to detailed form on another website.
d. There was some fault in the computer system that garbled up the details.
e. When I appeared at their agent to get a replacement videocam, the staff was quite rude and unhelpful.
I do not know why a high-tech company like CISCO make it so troublesome to the customer to have a replacement of a faulty product. The technology is supposed to make life easier for the customer, but it actually made life more difficult by passing the hassle of the paperwork to the customer.
Compare it with the "old fashion" way. If I buy a product from a retail store and it is faulty, I bring it to the retail store. They will check the date of purchase and confirm that it is faulty and replace it. They will do the paper work later and does not involve the customer in this hassle.
Tan Kin Lian
I called the manufacturer CISCO on its warranty. I had a difficult time. Here is my experience:
a. It was difficult to communicate with the call center (which was outsourced overseas)
b. Much time was spent to spell out the details for the call center staff to record into their system.
c. I was asked later to detailed form on another website.
d. There was some fault in the computer system that garbled up the details.
e. When I appeared at their agent to get a replacement videocam, the staff was quite rude and unhelpful.
I do not know why a high-tech company like CISCO make it so troublesome to the customer to have a replacement of a faulty product. The technology is supposed to make life easier for the customer, but it actually made life more difficult by passing the hassle of the paperwork to the customer.
Compare it with the "old fashion" way. If I buy a product from a retail store and it is faulty, I bring it to the retail store. They will check the date of purchase and confirm that it is faulty and replace it. They will do the paper work later and does not involve the customer in this hassle.
Tan Kin Lian
Sunday, May 16, 2010
Implementing I.T. systems
Comment posted in my blog.
Dear Mr Tan,
I have been involved in implementing IT Projects in the private sector since I started working 20 years ago. I am an Accountant by profession. I have gone thru implementing many kinds of IT systems. I find implementing the simple ones have the best chances of success.
IT systems have come a long way since then. Modern IT systems is able to cater to a lot of requirements. What is critical to the success of implementing IT systems is there must be a Project Manager handling the implementation full time. He must have enough experience implementing IT Projects and he must have approval to hire resources.
The Directors and the employees have an unrealistic expectation in implementing IT systems. They want the system to be able to do everything without lifting a finger because its a million dollar system. This is in turn compounded by the IT Consultants promising almost everything can be done without managing customers expectation. The IT Consultants charge their fees by project. So they will allocate a number of man hours to the project. If the project runs into difficulties, the IT Consultants will charge additional fees.
Another critical factor to the success of the project is the employees themselves. The question is are they willing to change their working habits and spent time to learn new skills to adapt to the system while also doing their job?
Thirdly, IT systems should be implemented by phases SLOWLY. This is so that the person working on the system has time to adapt to it. Implementing every thing at once brings the risk of multi-million dollar failure.
This is because there is huge resistance to change on the part of employees.
The consultancy firms will be happy that the hospitals want to implement all at once bec it will bring them huge revenues. They of course hope that their clients will succeed in implementing the system as it will bring them recognition.
No one wants to hire and pay mature workers who have hands on experience adequately and who can get the job done well. Instead CEO's nowadays say pay the consultants WELL. IT Consultants are skilled in "Consulting and IT work". Not in actually implementing the system.
What is actually needed is a person in the Co. who understands IT, its strength and limitations, who understands the company employees and culture, what they can or cannot do and assist them and have adequate experience in implementing IT projects and have hands on experience utilising IT.
Dear Mr Tan,
I have been involved in implementing IT Projects in the private sector since I started working 20 years ago. I am an Accountant by profession. I have gone thru implementing many kinds of IT systems. I find implementing the simple ones have the best chances of success.
IT systems have come a long way since then. Modern IT systems is able to cater to a lot of requirements. What is critical to the success of implementing IT systems is there must be a Project Manager handling the implementation full time. He must have enough experience implementing IT Projects and he must have approval to hire resources.
The Directors and the employees have an unrealistic expectation in implementing IT systems. They want the system to be able to do everything without lifting a finger because its a million dollar system. This is in turn compounded by the IT Consultants promising almost everything can be done without managing customers expectation. The IT Consultants charge their fees by project. So they will allocate a number of man hours to the project. If the project runs into difficulties, the IT Consultants will charge additional fees.
Another critical factor to the success of the project is the employees themselves. The question is are they willing to change their working habits and spent time to learn new skills to adapt to the system while also doing their job?
Thirdly, IT systems should be implemented by phases SLOWLY. This is so that the person working on the system has time to adapt to it. Implementing every thing at once brings the risk of multi-million dollar failure.
This is because there is huge resistance to change on the part of employees.
The consultancy firms will be happy that the hospitals want to implement all at once bec it will bring them huge revenues. They of course hope that their clients will succeed in implementing the system as it will bring them recognition.
No one wants to hire and pay mature workers who have hands on experience adequately and who can get the job done well. Instead CEO's nowadays say pay the consultants WELL. IT Consultants are skilled in "Consulting and IT work". Not in actually implementing the system.
What is actually needed is a person in the Co. who understands IT, its strength and limitations, who understands the company employees and culture, what they can or cannot do and assist them and have adequate experience in implementing IT projects and have hands on experience utilising IT.
Customer Service at Call Centers
I will be using my videocam to record my experience in calling the call center of big organisations, such as the government agencies, banks, telcos, insurance companies and airlines. Each video will be for up to 5 minutes. I will upload the video showing my personal experience - which hopefully will be good, but could show the negative aspects.
I hope that these videos will be educational and will encourage the big organisations to make changes to their call centers to improve the customer experience.
Please share the call centers that you wish me to try, giving me the name and the telephone number.
Tan Kin Lian
I hope that these videos will be educational and will encourage the big organisations to make changes to their call centers to improve the customer experience.
Please share the call centers that you wish me to try, giving me the name and the telephone number.
Tan Kin Lian
Investing in land abroad
Read this letter.
My comment
When several people lodge complaints with the authority that they have been misled into purchasing these investments through misrepresentations of the facts, the authority should investigate if there were intent to to defraud the public. The authority should also report the results of the investigation, even if no conclusive evidence could be found about the alleged misrepresentations. This would at least warn the public about the dangers of investing in these products.
This type of actions were taken in Malaysia and the UK leading to the closing down of the companies involved in the fraudulent activities and the prosecution of the perpetuators in court.
My comment
When several people lodge complaints with the authority that they have been misled into purchasing these investments through misrepresentations of the facts, the authority should investigate if there were intent to to defraud the public. The authority should also report the results of the investigation, even if no conclusive evidence could be found about the alleged misrepresentations. This would at least warn the public about the dangers of investing in these products.
This type of actions were taken in Malaysia and the UK leading to the closing down of the companies involved in the fraudulent activities and the prosecution of the perpetuators in court.
Taxi surcharges
Read this letter about taxi surcharges, which is getting out of hand.
My comment
It is better to raise the taxi fare and to remove all surcharges, such as the peak hour and location surcharges. All taxis plying the road should charge a standard taxi fare while premium taxi services (which charge a different fare, should be called by telephone or other means.
My comment
It is better to raise the taxi fare and to remove all surcharges, such as the peak hour and location surcharges. All taxis plying the road should charge a standard taxi fare while premium taxi services (which charge a different fare, should be called by telephone or other means.
Excessive charge to repair a damage
Comment posted in my survey.
My car ran into the parking barrier. Upon inspection only the arm was damaged. We both agreed to it and took photos respectively. The car park management later sent me a letter asking for 1,571 SGD payment to repair the barrier arm. The break down was like this:
• Labour to attend to ACCIDENT Case by the contractor $ 150.00
• 3M Magnetic Barrier Arm only $ 650.00
• Barrier arm Aluminium Bracket $ 80.00
• Delivery and installation charges $ 250.00
• Admin Charges 30% $ 339.00
7% GST $ 102.83
Total: $ 1,571.83
I disputed all the charges levied, especially the 30% admin charge that made no sense at all. I replied them saying i would take responsibility for the accident. But only on reasonable grounds. That barrier arm is simple to install (held on by 4 nuts and bolts), and the market price for it is only around 300 SGD (unbranded).
I advised them to file a claim with the Singapore Courts, and we will appear in court, state our cases and let the judge decide. That was March. I am still waiting to hear from them.
My comment
It is a sad episode when the company wanted to make a profit from an unfortunate event. It would be a nice gesture for them to charge only the direct cost and not seek to recover the labour and admin charges.
My car ran into the parking barrier. Upon inspection only the arm was damaged. We both agreed to it and took photos respectively. The car park management later sent me a letter asking for 1,571 SGD payment to repair the barrier arm. The break down was like this:
• Labour to attend to ACCIDENT Case by the contractor $ 150.00
• 3M Magnetic Barrier Arm only $ 650.00
• Barrier arm Aluminium Bracket $ 80.00
• Delivery and installation charges $ 250.00
• Admin Charges 30% $ 339.00
7% GST $ 102.83
Total: $ 1,571.83
I disputed all the charges levied, especially the 30% admin charge that made no sense at all. I replied them saying i would take responsibility for the accident. But only on reasonable grounds. That barrier arm is simple to install (held on by 4 nuts and bolts), and the market price for it is only around 300 SGD (unbranded).
I advised them to file a claim with the Singapore Courts, and we will appear in court, state our cases and let the judge decide. That was March. I am still waiting to hear from them.
My comment
It is a sad episode when the company wanted to make a profit from an unfortunate event. It would be a nice gesture for them to charge only the direct cost and not seek to recover the labour and admin charges.
Dr. Goh Keng Swee's immense contribution to Singapore
Many people are aware about the immense contribution that Dr. Goh Keng Swee had made to improve the life of millions of people in Singapore. He was the architect of our economy strategy that transformed Singapore from a developing country to a thriving developed economy. His strategy to attract the multinatinal companies into Singapore laid the foundation for our economic growth. The same strategy is now emulated by many other countries that desired to grow their economy.
There is another aspect of his contribution tht may not be well known. Dr. Goh was the keynote speaker at the historic seminar on the modernisation of the labour movement in 1969. He laid out a convincing case for the labour movement to set up coooperatives to take care of the needs of Singapore, in life insurance, savings and other economic ventures.
This strategy led to the formation of NTUC Income in 1970. Dr. Goh was the chairman of the board of trustees of NTUC Income for nearly 10 years and provided the guidance and advice for NTUC Income to establish a foothold in a challenging market environment. Without his guidance, it may not be possible for NTUC Income to be what it is today.
Later, the labour movement set up a consumer cooperative (i.e. NTUC Fairprice) and a taxi cooperative (which has since been privatised). The lives of many people are improved by the the contribution of the insurance, supermarket and other coopertives.
I heard stories about the frugal habits of Dr. Goh. He does not believe in wasting money unnecessarily. In his last speech in Parliament in 1984, according to the Straits Times report (quoting Prime Minister Lee), Dr. Goh said about the importance of "public service". I hope that Dr. Goh's message about "public service" can be rekindled.
Tan Kin Lian
Read this report in the Straits Times.
There is another aspect of his contribution tht may not be well known. Dr. Goh was the keynote speaker at the historic seminar on the modernisation of the labour movement in 1969. He laid out a convincing case for the labour movement to set up coooperatives to take care of the needs of Singapore, in life insurance, savings and other economic ventures.
This strategy led to the formation of NTUC Income in 1970. Dr. Goh was the chairman of the board of trustees of NTUC Income for nearly 10 years and provided the guidance and advice for NTUC Income to establish a foothold in a challenging market environment. Without his guidance, it may not be possible for NTUC Income to be what it is today.
Later, the labour movement set up a consumer cooperative (i.e. NTUC Fairprice) and a taxi cooperative (which has since been privatised). The lives of many people are improved by the the contribution of the insurance, supermarket and other coopertives.
I heard stories about the frugal habits of Dr. Goh. He does not believe in wasting money unnecessarily. In his last speech in Parliament in 1984, according to the Straits Times report (quoting Prime Minister Lee), Dr. Goh said about the importance of "public service". I hope that Dr. Goh's message about "public service" can be rekindled.
Tan Kin Lian
Read this report in the Straits Times.
Case study - think out of the box
Case Study.
My friend told me this case. Mr. X is a retiree widower (i.e his wife has passed away). He applied for a 2 room HDB flat with his daughter to form a family unit.
The daughter now wants to get married and apply for a larger flat. Mr. X wishes to live independently. The HDB wants to take back the flat as Mr. X is not able to form a family unit.
They asked him to sell his flat (which cost him $30,000 after grant) and apply for a studio apartment costing $80,000. Mr. X does not have the money to top up. He appealed many times to HDB to remain in his flat, but was declined. Mr. X is still fighting for permission to keep his flat.
What would you do to help Mr. X ,without changing the HDB rules on the family unit? Give your answer here. A prize will be given for an innovative answer.
My friend told me this case. Mr. X is a retiree widower (i.e his wife has passed away). He applied for a 2 room HDB flat with his daughter to form a family unit.
The daughter now wants to get married and apply for a larger flat. Mr. X wishes to live independently. The HDB wants to take back the flat as Mr. X is not able to form a family unit.
They asked him to sell his flat (which cost him $30,000 after grant) and apply for a studio apartment costing $80,000. Mr. X does not have the money to top up. He appealed many times to HDB to remain in his flat, but was declined. Mr. X is still fighting for permission to keep his flat.
What would you do to help Mr. X ,without changing the HDB rules on the family unit? Give your answer here. A prize will be given for an innovative answer.
Expensive computerisation projects
A knowledgeable insider told me that a few hospitals in Singapore each spent tens of million dollars to computerised their operations, after engaging big name consultancy firms. They abandoned their projects due to difficulty in implementation and wrote off their investments. It was very wasteful, and probably explains why hospital bills are expensive.
He said that this type of practice of paying a lot of money to consultants for computerisation projects happen in many government agencies as well.
I am not able to verify this information. I hope to get get confirmation from people who work in these places and are able to share their information.
Tan Kin Lian
He said that this type of practice of paying a lot of money to consultants for computerisation projects happen in many government agencies as well.
I am not able to verify this information. I hope to get get confirmation from people who work in these places and are able to share their information.
Tan Kin Lian
Workload of teachers
Read this letter.
My comment
The workload of teachers can be reduced by employing more non-teachers for the support duties. There are many unemployed people who would love to have the opportunity for these support duties. I hope that the government will be willing to spend some money to create the employment and reduce the workload of teachers.
My comment
The workload of teachers can be reduced by employing more non-teachers for the support duties. There are many unemployed people who would love to have the opportunity for these support duties. I hope that the government will be willing to spend some money to create the employment and reduce the workload of teachers.
Saturday, May 15, 2010
Claim for repairs to vehicle
Here are the results of the survey.
Dear Sir,
I would like your advice about a traffic accident involving my car colliding with a taxi. Both cars were at a traffic stop wainting for the light to turn green. When the light turn green, the taxi in front of me started to move but braked suddenly after a few feet. Because of the proxiity of the cars, a collision occured but the force of the collision was mild.
The taxi driver of the taxi and I both came out and inspected our cars but found no damage to both cars. The taxi driver and I both agreed that there were no damages to both cars as the force of the collison were mild.
The taxi claimed that he stopped the car suddenly to avoid a collision with a lorry but the taxi was making a U turn while the lorry was making a right turn at Alecandra road. However I did not see the lorry. From the traffic junction I found that it was not possible for the lorry to collide with the taxi as alleged.
As both cars were not damaged, I was surprised that the taxi send an invoice of the repairs to the taxi costing over $2000. to my insurance company. The officer of my insurance company said that the taxi has been repaired. Who allowed the taxi to be repaired whe there was no damage as a result of the acxcident?
F
REPLY
You can tell the insurance company to reject the claim from the taxi as the damages were not caused by you. However, the taxi driver will get his lawyer to sue you directly. You must be prepared to get your lawyer to reject their claim and to fight the case in court, if they issue you a summons.
Dear Sir,
I would like your advice about a traffic accident involving my car colliding with a taxi. Both cars were at a traffic stop wainting for the light to turn green. When the light turn green, the taxi in front of me started to move but braked suddenly after a few feet. Because of the proxiity of the cars, a collision occured but the force of the collision was mild.
The taxi driver of the taxi and I both came out and inspected our cars but found no damage to both cars. The taxi driver and I both agreed that there were no damages to both cars as the force of the collison were mild.
The taxi claimed that he stopped the car suddenly to avoid a collision with a lorry but the taxi was making a U turn while the lorry was making a right turn at Alecandra road. However I did not see the lorry. From the traffic junction I found that it was not possible for the lorry to collide with the taxi as alleged.
As both cars were not damaged, I was surprised that the taxi send an invoice of the repairs to the taxi costing over $2000. to my insurance company. The officer of my insurance company said that the taxi has been repaired. Who allowed the taxi to be repaired whe there was no damage as a result of the acxcident?
F
REPLY
You can tell the insurance company to reject the claim from the taxi as the damages were not caused by you. However, the taxi driver will get his lawyer to sue you directly. You must be prepared to get your lawyer to reject their claim and to fight the case in court, if they issue you a summons.
Puzzles to train your mind
Here are some testimonials on the use of the shape quiz and tangram to train the mind:
1. My son (age 13) often play tangram and shape quiz puzzle. Sometime, when he met quite difficult question while he doing his homework (for example : Math), he solved by "Out of box" way, but his answer is correct. I think this puzzle train his mind to find solution.
2. This shape-puzzles is more than just an engaging game. It actually helps tapping into your inner thinking cause in your pursuit to solve the problems, it pushes you to look at things from different angle
3. Fun puzzles that are suitable for a wide age range.
4. This shape-puzzles is more than just an engaging game. It actually helps tapping into your inner thinking cause in your pursuit to solve the problems, it pushes you to look at things from different angle
Order Online.
1. My son (age 13) often play tangram and shape quiz puzzle. Sometime, when he met quite difficult question while he doing his homework (for example : Math), he solved by "Out of box" way, but his answer is correct. I think this puzzle train his mind to find solution.
2. This shape-puzzles is more than just an engaging game. It actually helps tapping into your inner thinking cause in your pursuit to solve the problems, it pushes you to look at things from different angle
3. Fun puzzles that are suitable for a wide age range.
4. This shape-puzzles is more than just an engaging game. It actually helps tapping into your inner thinking cause in your pursuit to solve the problems, it pushes you to look at things from different angle
Order Online.
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