Singapore has highest concentration of millionaires

Singapore has the highest concentrations of millionaires, amounting to 15.5% of the population, followed by Switzerland and Qatar. Is this due to high property prices? Read this article.

Key financial figures of REITS

Many REITS (real estate investment trusts) give a dividend yield of more than 5%. The rentals are likely to increase over the long term. Even if the rentals drop due to a bad economic situation, the yield will adjust downwards, but will still remain attractive.

I have posted the key financial  figures for some REITS, as provided by a stock broker, in the FISCA website (www.easysearch.sg/fisca). They are available for members only.  Please note that this is just a brief summary - you have to get more details from your stock broker before you decide to buy them.

Tan Kin Lian

Asking for Advice

You have to present the full facts before you ask someone (like me) for advice or assistance. Read this article.

Non-disclosure agreement

Some consumers have a dispute with a financial institution. After lodging the complaint, they are asked to sign a non-disclosure agreement. The consumer does not know what to do, or how to seek advice, as they are afraid to disclose the details of the negotiation to a friend for friendly advice.

When the consumer brings the case to FIDREC, they are also asked to sign a non-disclosure agreement. The consumer faces the same difficulty.

I have written a paper on this matter to guide consumers to how to get advice, after they have signed this agreement. This paper is available to FISCA members only, in the FISCA website (www.easysearch.sg/fisca).

Tan Kin Lian

Shape Quiz competiton - TKL office

You can organise a shape quiz competition.  The shape quiz book and minipak can be ordered here. The handling charge of $3 is waived during the promotion period. (You can also see a view of my office in the video).

The shape quiz is good for children, adults and seniors. It helps to train their mind in creativity and also to keep the mind alert. The book book comes with the puzzle and the solution.  You can also buy the tangram book.

Encouraging developments in Singapore

When PM Lee made the sweeping changes in the cabinet, I shared the views of many other people that the new ministers may not be able to handle the issues that they have to take charge of.

So far, the developments have been encouraging:

• The minister for national development has decided to build 25,000 new flats and over 10,000 rental flats quickly
• The minister for transport is seen taking buses.
• Many ministers are more proactive in getting feedback from the public and responding to them in a positive way.

We may be seeing a new style of governance and political climate in Singapore.

Tan Kin Lian

Interesting places around the world

Watch the power points and images in this website, contributed by Mike Hansford. Mike used to travel around the world when he worked for a reinsurance intermediary. He receives these power points from friends and wishes to share them with other friends.

Village in Holland - Giethoorn

Mike Hansford sent me this powerpoint about a picturesque village in Holland. Enjoy it.

Improve transport in Singapore

Some suggestions for the new Transport Minister

A better transport system

Develop local transport

How to achieve more than 100%

Here are some tips.

Home Report from Street Sine

Before you buy, sell or rent a property, get a home report from Street Sine. See here.

Russian Matryoshka

See:
http://easyapps.sg/ishop2/ProductInfo.aspx?id=39

Order here

Sample property report - useful for owners

Here is a sample property report available from StreetSine for $39. It is useful for a owner who has to decide on the selling or rental price for a private property. See TKL website or Business Mail (advertisements)

Advertise your product in Business Mail

http://easyapps.sg/bm/Frame.aspx?ID=4

Follow TKL Blog

If you give your e-mail address as a Follower of TKL blog (see the Follow tab on the right), you will get an email sent to you daily. This is convenient to be reminder of new items in this blog.

Survey results - contest for elected president

100 people responded to this survey. 65% felt that it is better for more than 1 non-PAP candidates to contest the election. See TKL website

Keeping HDB flats affordable

The new minister for national development, Khaw Boon Wan, is taking the problem of rising HDB prices in earnest. He is building 25,000 new flats andmore than 10,000 rental flats. The strategy to increase supply rapidly, to meet demand, is likely to work to contain prices. If he sells the HDB flats at cost of land and construction, it will help to mitigate the price increase.

I hope that the minister will build more rental flats, which do not need to be subsidised. Give people a choice to rent a flat, rather than to own a flat. It will encourage them to live near their place of work (i.e. easier to move when one rents a flat, rather than own a flat). See my article.

Contribution to Yahoo Finance, May 2011

I contributed 4 articles to Yahoo Finance website in May 2011. These articles are now available for viewing by members of FISCA (www.easysearch.sg/fisca) after login.

FISCA - Perennial China Retail Trust

FISCA has prepared the salient points of this investment. It is available to members on login. Go to www.easysearch.sg/fisca.

Presidential election - Candidate endorsed by PAP

Who do you think is the candidate that will be endorsed by the PAP? Give your views in this survey.
http://www.surveymonkey.com/s/KJ8VRKT

Affordable HDB flats

Suggestion by Pang

Dear Mr. Tan

We could improve the affordability of owning a HDB flat without crashing the prices of existing HDB flats by:

1)      With immediate effect, cut the prices for all new HDB flats by 5% and:
rebate 4% to those who had purchased their flats within 1 year
rebate 3% to those who had purchased their flats within 2 years
rebate 2% to those who had purchased their flats within 3 years
rebate 1% to those who had purchased their flats within 4 years

2)      for the next 5 years (2011 to 2016)
peg the increase of prices for new HDB flats at 3% lower than the increase of the national median income.

For example : if the increase of median income is 5% for that year then the increase of prices for new HDB flats should be 2% for that year. If the increase of national median income is 2% for that year then the prices for new HDB flats should be decreased by 1% for that year.

With 1) & 2), we can achieve the effect of a 20% “reduction” to the prices for new HDB flats within 5 years without crashing the prices for existing HDB flats.   

For the longer term, the increase in prices for the new HBD flats should be pegged to the increase in national median income. 

Pang

Safeguard the reserves

Hi Mr Tan

You probably aware that the presidential election is coming soon.As the qualification criteria are so strigent, not many could fulfill. I am convinced that  you are are suitable candidate who could meet all the criteria.

 

You have championed a lot of causes and spoke up for the depositors who were misled, to a certain extent in the DBS mini bond saga.

 

We need a capable President who could hold the other key to the national reserve. He could perform a proper check and balance The late Mr Ong Teng Cheong spoke up a lot on the national reserves.He might not have a very good ending but had championed a cause and won the respect of Singaporeans.  Presently as tax payers,we do not know how much are our reserves in GIC & CPF Board and how they are being invested.

 

I strongly encourage you to stand for this election. I dont think there are many candidates eligible to participate this round. We should not waste another 7 years  for the next round of election.   

 

Richard Wong  

REPLY

I will decide in a few days' time

 

Salary of elected president

Kit Whye Chan

10:33pm May 28

Can I tell you a story about golf for those who never play golf. When a tournament indicates a very huge prize money for the 1st, 2nd and 3rd winner based on stroke play, this tournament usually attract a lot of "crocodile" players to the tournament. These "crocodile "players have very low handicap, yet they under-declared their handicap to be way above their actual. Some even give it to the maximum of 24. Why? Because they are more interested in winning the prize money and by declaring a high handicapper, they stand a very good chance of beating the normal players and winning the prize money. However, if the prize money is not significant, these "crocodile" players will appear at the tournament. 

Taking this analogy to the Presidential election, I am not sure whether a person is willing to stand for the Presidential election if there is a big drop in the President salary, say to $300K per year instead of $3 million a year. I hope those who want to be a President is not attracted by the current compensation, but really to sacrifice himself for doing a service to Singapore, protect its reserves and voice out opinions that are for the good of the country.

Why men are easy prey for investment scams

Read the article in the Information tab in www.easysearch.sg/fisca.

Contest for Elected President

Is it good for many candidates to contest the Presidential Election. Give your views in this survey.

Survey - Dr. Tan Cheng Bock

100 people responded to this survey on Dr. Tan Cheng Bock's bid for the Elected Presidency. Read the results in TKL website

Demonstration of Shape Quiz at Snow City

I am demonstrating the shape quiz puzzle at Snow City on Sunday 29 May from 2.00 to 4.00 pm.

Special 5-book bundle

Enjoy 40% discount on this special 5 book bundle and waiver of the handling charge at i-shop.

Dr. Tan Cheng Bock

Dr. Tan Cheng Bock has expressed an interest to stand for election as President of Singapore. You can read more about him in his blog.

Give your views of Dr. Tan in this survey.

Driver and Co-Driver

Watch this video.

Insurance for laptop

Dear Mr. Tan,
I was offered insurance for my laptop covering the following risk:
* accidental damage
* loss
* theft due to forceful break-in to the home or from locked vehicle.
It seems that if my house or vehicle was not locked and my laptop is not stolen, I cannot claim, but if I report my laptop as lost due to being left behind, I can claim. Why should I report theft (and have the claim rejected) when I could report accidental loss and can make a claim?


REPLY
You need to read carefully the definition of loss, as it is likely that the cover may be confined to certain type of loss and that carelessness may not be covered. I am not familiar with this cover, so I shall post it to get views of other people who have bought this type of policy before.

Downgrade to a 2 room flat

Hi Mr Tan
Due to taking care of one of my family member ( stroke ), I am unable to work as full time employee. My current job is commission based. As can't afford to engage a maid to take care of my family member, I am shoulder the full responsibility.

Regard of how hard I work, I still face financial cash flow problems. The killing part now is I need to service my HDB loan , as all my CPF already dried up , every month I need to pay $1000 CASH to HDB. Now still left $110 000 plus of loan to service.

I bought this 4 rm flat at the price of around $135K in the year 1996. Now able to sell around $400 000. My next owner is my dad but not working due to very old. The other person stay with me is my mom but also not working due to old age. I am single.

Every month is a big headache to me as I need to find $1000 to pay my housing loan. Due to taking care of my family member I know that I sure can!t service my loan with my part time pay. As my saving is going to dry up in 3 months time.

My parents don't like me to rent out my flat as they don't like to stay with strangers. I am thinking of selling off my flat. I am able to profit around $150K but if I want to buy another flat, after calculation, if I am not going to take loan from HDB again, I can ONLY afford to buy a 2 room resale and it will be in places like Jurong area which is far away.

I know it is very silly to downgrade from a 4rm to 2 room flat and further away from town. But the problem is with my part time pay , I totally can't afford to service my loan. If you were in my position, would ou be making such decision like mine? Please post my views in your blog as I like to hear the views of other people as well.

Anthony

Obituary for Common Sense

Read this obituary for Common Sense.

Website - Mortgage sense

Hi Mr Tan,

May I humbly request to have a link in your website? I wish to highlight my business model to you to give you the assurance that your client will be well taken care of.

I been working in the banking industry for 5 years and won numerous awards. The reason for me to start this business consultancy is due to this knowledge gap in the market. In 2009, I decided to leave my company to set up my business. Since day 1, I been giving back to society - every successful closure, I will donate $30 to charity in the name of my client. On top of that, my team has been participating in other charity events like flag day etc. You can visit our website for more details. 

There are more I could share but prefer to do it face to face. I hope you could agree to but a link "home loan singapore"  link to "www.mortgagesense.com.sg". It will definitely help me alot in the grow of my business. 

Warm Regards,
Alan Koh
Director

Get a fair price on your motor insurance

Dear Mr. Tan,
I received a renewal for my motor insurance and am shocked at the increase in premium. I try to call other insurance companies and they also charge more than I paid before. Which company do you recommend?

REPLY
Try Direct Asia. Read this FAQ
You can also read this article on how to pay road tax and get the vehicle inspection done easily.

Survey results - review of ministerial salaries

Here are the views of 97 people to this survey. It also includes their comments and views. TKL website

Survey results - unexpected resignation of ministers

Here are the views of 62 people who participated in the survey on the unexpected resignation of ministers and the sweeping changes in the cabinet. TKL website.

Public transport and commuting

Hi Mr Tan!
I happened to come across an article by Mr Alex Au, and I think you'll agree with him with many points in a new article he wrote recently. It will better support your arguments for living near one's workplace and I'm a keen supporter of this idea along side with you.


http://yawningbread.wordpress.com/2011/05/22/rail-interchange-upgraded-transportation-issue-much-wider-than-that/


Edward


Quote from the Yawning Bread article

It’s also time to rethink the sacred cow of home-ownership. The fact is, people switch jobs. Unless people can easily move to live closer to their new job, any hope of reducing commuter load will not be realised. As economists have known for eons, home ownership is a serious drag on residential mobility. Once committed to a huge purchase, it is very difficult to consider selling and moving. It gets impossible at certain times when prices dip below the historical purchase price of a home; who would want to sell at a loss? Therefore, a high ratio of renters in a population allows greater ease of matching people to jobs.

In any case, as I argued in an earlier article, everyone who is living in public housing today is deluding himself, thinking he “owns” his flat. He does not. What actually is happening is that he has paid 99 years’ rent in advance. In that case, if we’re actually renting anyway, why can’t we pay a month at a time? That allows people to move easily, enabling them a wider choice in the job market. People will naturally choose to live closer to their jobs, thus reducing commuter load.

Unquote

Committee to review ministerial salaries

There is some optimism and more scepticism on the committee formed to review the ministerial salaries. I wish to share my wishes for the outcomes of the deliberation of the committee. TKL website.

You can share your views in this survey.

Websites for learning and information

Get your book on financial planning and life insurance now from iShop.

iShop - enjoy attractive discounts on TKL books
FISCA - read articles on financial planning
Movie Club - join a movie club
Investment Alert - learn about the scams
Transport Club - find better transport to work and home 
Easy Ads  - put an advertisement or search for an advertiser
Family Life  - a game to manage your family life
Financial Plan - prepare your own  financial plan
Business Game - a game to learn the skill of running a business.

Stanford - Entrepreneurial Thought Leader

http://ecorner.stanford.edu/podcasts.html

Review of Minister's salaries

Here is an excellent article by Lucky Tan.  Here are some views of netizens. Another view by Yoong Siew Wah.

You can get a good summary of the current issues at Singapore Social Economic Portal (SGEP)

Be educated on financial matters

Here is a guide for consumers to be educated on financial matter. They have to spend the time and some money to be educated. See Ask Mr. Tan or click here.

Business Mail

I am now using Business Mail to send out e-mails to FISCA members and non-members to inform them about FISCA events. It takes less than 1 minute to send out 850 e-mails. Business organisations who wish to use Business Mail to send out their flyers can contact ceo@tankinlian.com. More details of Business Mail can be found here: http://easyapps.sg/bm/

FISCA Talk - Understanding and applying fundamental analysis in stock investments

There is a new FISCA talk scheduled for Saturday 2 pm on "Understanding and Applying Fundamental Analysis in Stock Investment". It was arranged on popular demand by past attendees at FISCA talk. More details can be found at   http://easyapps.sg/assn/Org/Event.aspx?id=5. This will be preceded  by the AGM of FISCA (to be attended by FISCA members only).

Tag our bags and small children

My family went on an outing to the Blue Mountains outside Sydney. During the trip, my grand daughter Vera lost her favourite bag containing some expensive clothes and toys. This is a picture of the bag.

We realised that she had left her bag behind several hours later. We were 100 km away and it was too far and too late for us to go back to look for it.

I should have placed a tag (with my name and mobile number) on her bag. This would have allowed an honest finder to call the owner by mobile phone.

This tag is also useful to be attached to the pant of a small child who might get lost in crowded stations, ferries or tourist spots. If the child is lost, it is easy for a adult to call the parent.


The next time that I travel with a young child, I would bring along several tags to be used in all the bags and small children. I hope that this tip is useful for you when you travel on a vacation.

Tan Kin Lian

Minimum wage in Sydney

 I spoke to a staff at the restaurant where I had breakfast on Sunday. She is a student from overseas and is allowed to work 20 hours a week. She earns A$15 on weekdays and A$20 on weekends. I calculated that she must have earned A$1,500 a month on the part time work. She said that she has to pay taxes but I was told that the rate of tax is only 10% at her salary level (revised).

This is a good income for part time work. Many students are able to earn an income to pay for their education fees and also to have money to spend. They are hard working and provide courteous and good service. The high wage results in higher prices paid by consumers, but as the customers also earn a high income, they find the prices to be affordable.

The tourists may find the prices to be high, but this is also contributed by the high exchange rate. If the country is too costly and uncompetitive, the exchange rate can come down and the competitiveness can be restored.

A minimum wage ensures that all workers can earn an adequate income and have a good standard of living. It reduces the gap between the high and low income earners in the country. It is likely that a high wage country will have lower prices for their properties, relative to the income level - so the consumer prices may not increase as much as the wages.

I find that Australian system, with a high minimum wage and control over the number of hours that can be worked (e.g. by students) to be better in distributing the work opportunities to those who are willing to work. I believe that a minimum wage helps to make a better society - which is why many countries decide to have a minimum wage.

Singapore is one of the few advanced countries that does not have a minimum wage. Although we have the workfare income supplement, I think that the minimum wage system works better.

Tan Kin Lian

Fun Sunday - concession price one day pass

My family went on a tour of Sydney on a Fun Sunday ticket. It is a one day travel pass on trains and buses and can be bought for a concession price of A$2.50. We took the ferry from Darling Harbour to Circular Quay and another ferry to Manly and back and a train back to our apartment. The normal fare for these trips would have been A$15. The concession price is really attractive. Many families went on an outing on this Sunday to use the concession tickets. I do not know what role the government played to encourage this type of useful social activity - but I suspect that some leadership from the government is required to make this happen. A lesson for Singapore?

Free shuttle bus in Sydney

There is a free shuttle bus that operates in the Sydney CBD,. It runs on a route of about 3 km and takes passengers along George Street and Elizabeth Street between Circular Quay and Central Station. It connects the main railway stations in the CBD.

The service is free. This is useful for visitors who do not know where to buy the pre-paid bus tickets. It is used by the locals and the visitors and runs quite frequently on weekdays. It is well used but not crowded. I am able to get a seat on all of my trips.

Who funds the free shuttle service? It is the government, i.e. the taxpayers. There is nothing wrong about spending tax payers money to provide a free shuttle bus. The state has to pay the salaries of policemen and other public officers. A free shuttle service is just one of the public services that are well appreciated.

Singapore can learn from the experience of other cities and provide free shuttle service to bring people from their homes to the MRT stations and bus terminals. This will encourage more people to travel by public transport, instead of using their cars on congested roads and packing the parking lots.

Remember and compare - Goh Keng Swee

I received this message that was purported to be sent by Mrs. Goh Keng Swee.  I knew of Dr. Goh's circumstances after his retirement and stroke and can confirm personally that these facts are true. Tan Kin Lian.


What never? Goh Keng Swee after he completely retired from public service, had no driver but was always driven around by his wife. Whenever he went to SGH for medical treatment, his wife and he were often denied a reserved parking lot and was told that the lots were for VIP only.  Once when he was warded, his wife had to be given a lecture by a sister on the proper use of a syringe when she asked the staff nurse to use a $1.25 syringe for cleaning
him. Whenever he was warded in SGH, his wife was with him throughout his stay, very often acting like his nurse. All this while she slept on a sofa/recliner chair in the room at night. 
 
When a Singapore GLC (set up by GKS) learnt that he was living on a net monthly income of S$8500/- per month, offered a cheque for S$500K to his wife under the guise of a lump sum loyalty payment for a book they wrote on him, his wife instantly cancelled the cheque and wrote to the CEO  to thank him for his kind gesture, and explained that she couldn't receive the cheque because what her husband had done for the company was not for money, not for power, not for glory, or even to be honoured, but for Singapore and Singaporeans. 
 
Maybe Goh Keng Swee's official status cannot be compared to any Head of State, but his contributions to his country are just as sincere and honest as that of any honest and caring political leader.    

Why housing prices will fall

http://singaporemind.blogspot.com/2011/05/why-property-prices-will-fall-soon.html

Survey - PM Lee has to share the blame

57 people responded to this survey in two days. They are generally negative about PM Lee although 50% felt that he is the best person to make the required changes. Read the results here.

No more blank cheques for the PAP

Tan Cheng Bock's speech

President Harry Truman

President Harry Truman epitomizes what public service should be. This is a lesson politicians in Singapore. TKL website.

More about President Truman here.

The Fair Deal by President Truman.

Car Pool website

This website promotes car pooling and a green environment in Singapore. Read this guide.

Two camps in PAP?

http://yoursdp.org/index.php/news/singapore/4837-radical-change-or-forced-circumstance

What are your views about the sweeping changes? Give them in this survey.

Mio TV by SingTel

If you have subscribed to Mio TV by SingTel, take part in this survey to share your experience.

Housing price conundrum

This video provides an explanation on why the housing prices went up a lot in America before it fell. It may happen in Singapore.

Khanacademy - learn for free

Watch & Practice. Learn almost anything—for free.

What started out as Sal making a few algebra videos for his cousins has grown to over 2,100 videos and 100 self-paced exercises and assessments covering everything from arithmetic to physics, finance and history.  

This link is very good!

 

You can learn almost anything .... for free

 

http://www.khanacademy.org/

 

Rent or buy a home?

Is it better to rent or buy a home? Watch this video for an explanation of the factors that you need to consider. Please note that the situation in America is different from Singapore, so you have to do a separate calculation in Singapore to get the economics right. Here are some important differences:

• Interest rates are different between the two countries
• There is no deduction for mortgage interest from income tax in Singapore

But, the general conclusion applies. At the high level of prices of properties, it is better to rent rather than to buy a property. People overpay for their property in the hope that the property will continue to appreciate in price, but up to a point, the price is too high and will fall. This is what has happened in America and is likely to happen in Singapore as well.

Buying a HDB flat (part 2)

This article is available for members at the FISCA website, www.easysearch.sg/fisca

Wine at inflated prices

Here is an example of a potential scam ....
http://www.easyapps.sg/assn/Org/Default.aspx?id=8
Login as a member (membership is free) to view the details.

PM Lee has to share the blame

Here is a view of a small man to the changes in the sweeping changes in the cabinet. He pointed out that PM Lee also had to share the blame for the failings during the past years. TKL website

You now have the chance to express your small man's view in this survey.

My views on the new cabinet lineup

The new cabinet line-up signals clearly that there will be significant changes in the political landscape in Singapore. Will it be for the better or for the worse? Here are some observations:

• In spite of being unhappy over many government policies, 60% of the voters voted for PAP and stability. The sweeping changes in the cabinet line-up cannot be seen as representing stability. Are these voters being given what they were expecting?
• The underlying problem is that, in the past, the government made its decisions behind closed doors using inputs by a small group of elites. This system needs to be changed for new policies and approaches to be produced. 

 We need a new system of governance based on the following:

• Inputs from a broad group of knowledgeable people (outside of the elites and scholars)
• Active discussion in Parliament - and MPs have to spend more time in this duty
• An active media to bring up the issues.

I will be writing more on this topic later.

Tan Kin Lian

CPF Money

A reader of my blog sent this question to me. His spouse passed away and he submitted proof of death the CPF Board. The Board said that the CPF money would be paid to the nominees named by the deceased spouse, but refused to tell who were the nominees. The husband did not receive the money. He checked with his mother-in-law, i.e. the mother of the deceased spouse, and she said that she did not receive the money. The husband asked me - how can he check on whether the money was paid to anybody at all? Could it be possible for the money to be taken away by someone else?

I advised him to write to the Minister for Manpower (who is in charge of CPF matters) and also to see his Member of Parliament. The Government should be aware about this type of problem which arises from the way that matters are being done in Singapore. Why has this type of matter be handled in secrecy? What about transparency and accountability?

Tan Kin Lian

New cabinet lineup in Singapore

For a good summary of views from various sources, read SGEP

George Yeo's legacy

http://mrwangsaysso.blogspot.com/2011/05/george-yeo-and-his-true-legacy-for.html

FISCA membership fees

Some people apply to join FISCA and were not aware that there is an annual membership fee of $36. If they wish to resign from FISCA now, they should login, go to the Profile tab, and click on "resign as member". The membership fee of $36 will be waived. After resignation, they will not be able to login as a member and read the "evaluation of products" and other articles that are reserved for members.

FISCA - buying insurance prudently

An article on buying insurance prudently has been posted in the member's section of FISCA (www.easysearch.sg/fisca). It is available only to members, after login.

Silver - safe haven asset

Silver, a safe haven asset, plummeted 28% in a week. This is the danger of chasing any asset bubble. When an asset price goes up too high, above its real value, it is in danger of a large fall. This may happen to property prices as well.

GE2011 - reflection by Wong Wee Nam

http://www.sgpolitics.net/?p=6851#more-6851

The general election 2011 - views of Catherine Lim

Read this interesting analysis by Catherine Lim

Article 2
http://catherinelim.sg/2011/05/14/after-ge-2011-some-crystal-ball-gazing
Article 1
http://catherinelim.sg/2011/05/09/how-ge-2011-proved-me-oh-so-wonderfully-wrong/

Survey - LKY and GCT leaves cabinets

Here are what Singaporeans feel about their decision to leave the cabinet. 90 respondents participated in this survey within 20 hours. Direct link.

Singapore General Election - view from Australia

A Singaporean who has worked several years in Australia gave this view about the Singapore general election. TKL website

Public transport - that sinking feeling

Sent to me by a reader

A recent Frost & Sullivan Journey Experience Index showed nearly 8 in 10 Singaporean commuters dissatisfied. And that Singapore ranked 18th out of 23 cities surveyed.  It is one notch behind Tokyo!

http://www.themalaysianinsider.com/world/article/singapore-survey-shows-nearly-8-in-10-public-transport-commuters-dissatisfied/

In 2007, our own LTA's survey showed 8 in 10 commuters satisfied with our public tranort.

http://app.lta.gov.sg/corp_press_content.asp?start=1757

A bad investment linked policy (Vista)

The policyholder was not told about the high management fees and the heavy penalty on early termination of the plan. This fact become apparently only after 18 months. A few policyholders have been caught in this type of trap. The adviser did not disclose the actual structure, which was quite complicated. Read the facts here and avoiding falling in this type of trap with complicated investment linked policies. Ask Mr. Tan

Survey - Open letter to the Prime Minister

Here are the views of 30 people who responded to Tan Kin Lian's open letter to the Prime Minister. TKL website.

Personal rapid transport (PRT)

The PRT is a concept that has been discussed for several decades. With the advance of computer technology and the emphasis on green energy, this concept is now right for implementation. Read this article.

Survey: LKY and GCT to leave cabinet

How do you feel about their decision to leave the cabinet? Survey.

Transparency of Government

A Singaporean, who has migrated to Australia and continued to visit Singapore regularly, made this observation about transparency of Government.
In Australia, there is a free media that is willing to criticize government decisions that they consider to be bad. The academics, i.e. university professors, are also willing to argue the issues independently.The ministers had to go on television and radio to defend their policies against critics.
He observed that some of the statements made by ministers in Singapore would never survive the debate in Australia.
He made research on certain issues and found it difficult to get the relevant statistics in Singapore. In Australia,t he statistics are produced by an independent agency, are available at a detailed level and are not controlled by the government. The quality of the statistics are much better than in Singapore.
When he first migrated to Australia, he felt that Australia would give a better future for his family. After 40 years, he still felt the same, although the conditions in the two countries had changed considerably. He like the openness, transparency and accountability found in Australia.
Tan Kin Lian

Do you hear the people sing?

This song, taken from Les Miserables, echoes the anger of a people who suffers for the unfairness and hardship of life. Does it apply to Singapore?
http://blog.dk.sg/2011/05/06/do-you-hear-the-people-sing-singing-a-song-of-angry-men/

A local song for our dear leaders

http://www.sammyboy.com/showthread.php?93068-LATEST-LOCAL-Song-For-Our-DEAR-LEADERS.-Si-Beh-Ho...Must-Watch!!!!

Stagnant wages

A Singaporean who migrated to Australia 40 years ago told me this story. In 1987, he saw an advertisement in a shop in Toa Payoh for an assistant, that offered a salary of $1,200 a month. He proudly told his friends in Australia that Singapore was making good progress and the salaries would soon catch up with Australia. But, the situation did not improve as expected.
Instead of going up, salaries had remained stagnant (and had actually declined) over the past 25 years. If Singapore had made progress, the salary for a shop assistant should be  $3,000 today - allowing for the change in cost of living. Instead of improving, the wages had stagnated. Many Singaporeans are being squeezed by the rising cost of living and stagnant wages.
Tan Kin Lian

LKY and GCT leaves the cabinet

http://www.news.gov.sg/public/sgpc/en/media_releases/agencies/pmo/press_release/P-20110514-1.html?AuthKey=be78c091-1871-7044-84ab-76c7c76c5799

Meeting Singaporeans in Sydney

Four Singaporeans contacted me by e-mail and offered to meet me in Sydney. I met a family for dinner this evening. They migrated to Australia 40 years ago, but still maintained close ties with Singapore and visited their family in Singapore regularly over the years. They are able to give me an interesting perspective of the difference in the thinking, values and way of life between the people and government of Singapore and Australia. They were very proud of Singapore in the old days and ask now, "What is happening in Singapore recently?" I shall write about this matter over the next few weeks.
I will be meeting other Singaporeans or talking to them over the telephone over the next few days.
Tan Kin Lian

Prepare for an increase in population

On the plane to Sydney, I saw an article in The Australian newspaper. There was some discussion about a proposal to increase the population of Australia. The government did not specify a numerical target but stated that the increase in population should be built based on the capacity of communities to cope with a larger population, i.e. the housing, schooling, medical and other facilities.

This is a different approach taken from Singapore - where the floodgates were opened and the inadequate facilities became evident caught the leaders by surprise. We should replace our old style of governance, which is based on behind the door planning by a small group of elites, who are out of touch with what is happening on the ground. We need to change our system of governance to be more open, transparent and participative. It will lead to better planning for the future, and reduce the negative impacts of bad planning.

Tan Kin Lian

Buying a life annuity

Here are some tips to retirees on how to select a good life annuity, i.e. one that gives good value to consumers. Ask Mr. Tan

A better transport system

We can build a better transport system in Singapore, rather than wait 10 years for new MRT lines to be ready. TKL website

Blogger is now back

I did not make any posting for the past 24 hours as blogger was out of action. It is now back in action. But I am now in Sydney.

Video on Business Mail

http://www.youtube.com/watch?v=vaWHTZzaF2M

Feedback to FISCA

If you have any feedback on FISCA, use the Enquiry tab at the FISCA website. It will be attended by the FISCA admin staff.

Business Mail - Overview

Here is an overview of Business Mail. It is written for businesses and consumers.
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GST and Government Spending

This article explains the share of GST to tax revenue and how it is spent. TKL Website

Sydney 13 to 23 May 2011

I will be in Sydney from 13 to 23 May on holidays. If any of my blog readers wish to meet me in Sydney, send an e-mail to kinlian@gmail.com. I will continue to update my blog, as the internet connection in Sydney should be quite good. However, it will not be as regular as when I am in Singapore.

FISCA website - buying a HDB flat

A FISCA committee member is writing a 3 part article giving tips on buying a HDB flat. Part 1 is now posted and is available to members after login. Go to www.easysearch.sg/fisca.

GST is unnecessary and bad

I have been against GST since its implementation. It is unnecessary and bad for Singapore. Here are my reasons.

a) There is no need to get revenue from GST in the first place. Unlike Western countries, Singapore does not provide much in welfare benefits, e.g. old age pension or unemployment benefit.
b) The Government already collect a lot of money from ERP, COE, land sale and foreign worker's levy.

So, the government does not really need this source of revenue. The introduction of GST (from 3%, 5% to 7%) has resulted in increase in the cost of living and added additional cost in compliance and collection. This also increased the cost of doing business.

I need your help to do some research for me, as follow:

a) How much is the GST collected in each year, and also the government surplus? (This will show that GST revenue is NOT necessary for Singapore)
b) Average income in Singapore and the number of taxpayers that earn above $100,000 and $500,000 a year.

I wish to write a paper to argue that GST should be scrapped entirely (and not just removed for essential items, or to reduce to 3% - as suggested by some opposition parties).

Tan Kin Lian

FISCA Educational talks

Here are the educational talks organized by FISCA in May 2011.
http://easyapps.sg/assn/Org/Event.aspx?id=5

These talks are educational and useful, and guide you on how to invest your savings to get a better return. The talks are sponsored by SGX, so you only pay a modest fee. They are conducted by FISCA, with the view of educating consumers to choose the right financial products.

Swan Lake - a great performance

A great performance of Swan Lake. This is the first classical score that I heard 50 years ago, and loved it over the years.  TKL website

Affordable HDB flats

Here are my proposals to provide affordable HDB flats to first time buyers. TKL website.

Reporting by our Media

Reporting by TODAY newspaper :
When WP LTK kicked PAP GY out, it is "An emotional journey for both teams".
When SPP Chiam lost to PAP WKS, it is "Sun sets on Opposition veteran's career".

Petition to Prime Minister

http://thinkformesingapore.blogspot.com/2011/05/open-letter-to-mr-lee-hsien-loong.html

You can find out “afterlife” now

Read Anne Puryear’s book “Stephen Lives” and you can find out what afterlife is like from the spirit Stephen. Amazingly, it is the same as that described by Guru Harry in Tommy Wong’s book “Wisdom on How to Live Life (Book 2)”.
Tommy Wong’s book can be ordered here.

Paul Buchanan - A door cracks open in the little red dot

http://www.scoop.co.nz/stories/HL1104/S00158/paul-g-buchanan-a-door-cracks-open-in-the-little-red-dot.htm

A Mandate for the Opposition

Hi, Kin lian,

ROUGHLY 1 in 3 voters endorses the Opposition. The percentage of total votes polled should rightly reflect the number of seats won, but it does not in the present system. A ‘proportional representation’ electoral system provides for a more equitable representation in Parliament. A 30% to 40% of total votes polled by the Opposition is, by any measure, a substantial mandate. A mandate for the Opposition, to continue both in and out of Parliament to push for greater transparency of policies and a greater accountability of actions.

Francis Tan tc.

Minister's pension

A letter explaining the pension paid to ministers has been posted in SGEP. Here is the direct link.

Dear Kin Lian
As an actuary, I am sure you can easily quantify the amount paid out in a year or the amount needed to be set aside for this pension.  It would probably run into billions a year and the public has a right to know.   Let not forget this amount is for life and pay out of our tax money.

I am not against pension system.  I think it is a good social safety net for all Singaporean.   Previously, public servants are getting a pension because their remuneration are lower than the private sector so it is a way to compensate them.   However, since CPF was implemented decades ago, still PAP does not have a transition mechanism to migrate the pension system for Ministers to CPF system.   

While I think that we may not be able to stop these pension payment to those who have retired due to contractual reasons, we should at least push the govt to review the system so as not to burden our future generations with such huge financial obligation.   As you are keenly aware, The longer we wait, the compounding effect of this financial burden will increase astronomically.

Steve

Fat pension for ousted ministers

Dear Mr. Tan,
Some people feel sympathy for the ministers that are ousted in the general election, having lost the election at Aljunied GRC. They is no need for sympathy. The ousted ministers will not be paupers. Each person may be getting a lifetime pension of half a million or more a year. They can retire quite comfortably.


REPLY
Are you sure of the figures? When does the pension start to be payable - from age 55 or 60, or 65?

Drop Life, buy Term, Invest the Difference

Dear Mr Tan,
At last I got a someone who can give advice objectively which I could not get from elsewhere. Your book 'Get Value From Your Life Insurance' is an eye-opener to me. I only started to read about financial planning a year ago when there was a major change in my life stage. I start to realize that saving in bank and CPF alone will not be enough to see me and my wife through retirement. This is so especially that we belong to the sandwich generation. Now at 40, my family commitment has increased financially and this is affecting my long term goals with retirement planning being more urgent than ever before as nowadays I find myself difficult in setting saving aside immediately after every pay cheque, even though I regard myself as a modest-living person and with no car. I'm currently reviewing my 3 existing whole life insurance policies which I bought during my early years when I've very little financial knowledge.

Your book provide an easy to understand determination of the effect of deduction and yield, but trying to interpreting the policy and its BI figure proves confusing with limited information in them. I'm a firm believer of 'buy term, invest the difference' ever since I started to know more about insurance planning. I will greatly appreciate, out of your busy schedule, if you could provide advice if my 3 existing insurance policies are worth continuing? Attached are the 3 polices for your review.

Will it be more advisable and worthwhile in terms of cost saving for me to get a decreasing term policy when my financial commitment start to lessen in my later stage of my life?

Recently in the market, there is a new product covers for early stage critical illness. May I know what is your opinion on this product?

REPLY
Please read this FAQ and consult Vincent Sear
http://tankinlian.com/admin/file.aspx?id=435

The book on life insurance is available from i-shop.

Household income gap

http://tankinlian.com/admin/file.aspx?id=495

Growth in life insurance sales

The life insurance sales grew by 40% during the first quarter of 2011. However, the total assets grew by only 8% - a large part of it can be attributed to the higher stock market values. What account for the difference?

I suspect that a significant portion of the increase in sales is due to replacement of life insurance policies. Many insurance companies introduce new insurance products every year. Their insurance agents use the new products to get customers to stop an existing policy and "upgrade" to a "better policy". This is called "replacement of policy". When it happens, there is really no increase in sales. However, the insurance company usually count the new policy as a sale and does not deduct the termination of the existing policy.

When a life insurance company reports a spectacular increase in sales, the real increase may be quite small, as a large part can be attributed to replacement.

When the policyholder replaces a policy, the policy has to incur the upfront expense all over again. This can be up to 2 years of the regular premium or 5% on the single premium. The cost is exorbitant, and eat away the yield on the policy - giving a poor net yield. The policyholder is usually not aware about these high charges and may be misled by the high "projected yield".

Many investment-linked policies are still being sold on the high projected yield of 9%. The policyholder is not told that the net yield, after deducting the charges, is only 5% (i.e. a reduction in yield of up to 4%. If the real yield in the future is 6%, the net yield will only be 2%, which cannot cover inflation. This is a poor yield, considering the investment risk that has to be borne by the policyholder.

When an insurance agent approaches an existing consumer to recommend a new product, the consumer should reject the recommendation. There is a high risk that the consumer will be taken for a ride. I am not aware of any new insurance policy that make sense for a consumer, considering the high charges that are taken away to pay the agent and to make profit for the insurance company.

Read about the evaluation of the insurance policy from my book, "Get Value from your Life Insurance Policy', which is available from i-shop.

Tan Kin Lian

Insurance of gadgets

Have you insured your i-pad, mobile phone or laptop? Give me the details of the coverage and premium, and the insurance company that provide the cover.

Aljunied - putting into perspective

A view from a reader:
The five who lost Aljunied GRC last night basically went through what thousands of Singaporeans have gone through, which is losing their jobs due to competition.

Lessons from the General Election 2011

Here are 5 lessons that can be learned by observing the results of the general election 2011.  TKL website

Oppositon parties should have 25 seats in Parliament

Dear Mr. Tan
To be fair, we replace the 'first past the post' system with the 'proportional representation' system. This is what the GE results will look like this:


WP          Votes won 12.82 %            Seats won: 10.5
NSP                          12.04                                     9.8
SDP                           4.83                                      3.9


OPPOSITION SEATS WON - 25
Francis Tan TC.

Managing a Town Council

One of the duties of the elected MP is to manage a town council. Many people probably worry about the lack of experience of opposition MPs i nmanaging a town council, although Low Thia Khiang and Chiam See Tong appeared to do this job quite well - but it could be an exception. The other opposition MPs, if elected, might not have the same calibre and dedication - and this uncertainty might have deterred the voters from voting for them.

I like to write a paper on what a new elected team of MPs should do to manage a town council well. They do not need to do the day to day work, as they can appoint professionals to do the job, but the town council needs to have a system of managing the expectations of the residents and responding to a crisis or emergency.

Can I have contributions to this topic, from people who have managed a town council before. What are the key strategies and "to-do" list? Please post your comments here, or send them to kinlian@gmail.com.

Tan Kin Lian

New Foreign Minister

My guess is that Wong Kan Seng will be appointed the Foreign Minister. He as the Foreign Minister for a short period before he became the Home Minister. His long tenure with the Government gives him the experience for this job - at least for the interim period, until a new person can be found. I also expect Goh Chok Tong to take a more active role in this ministry, perhaps being the mentoring minister.

What do you think of the election results?

Here is Mr Wang's view. http://mrwangsaysso.blogspot.com/2011/05/what-do-you-think-of-election-results.html

Give your views in this survey.

Political parties in Singapore

The smaller political parties should merge and be a more credible force. See TKL's article in SGEP. Here is the direct link.

Nominated Ministers

It is time for Singapore to introduce of appointing ministers who are not Members of Parliament. Read my  article posted here.

Loss of Foreign Minister

We have lost an experienced foreign minister, George Yeo. Here are some ways to get him back into this position.

The PAP can call a by-election in one of its SMCs. George Yeo can contest in the by-election and is likely to be returned to Parliament and can continue as foreign minister.
This requires one of the elected MP to be willing to give up his or her hard won seat for the good of the country. Any takers?

Another approach is to allow a minister to be appointed that is not a member of Parliament. Read my Open Letter to the Prime Minister here. This open letter was sent out a few days before the election.

Tan Kin Lian

Pupsik Studios joins iShop

You can order baby products and gifts at iShop

We hear all your voices - PM Lee

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1127451/1/.html

Reform the Electoral System

Hi, Mr Tan
I'm happy WORKERS' PARTY scored a landmark victory!
Under a 'proportional representation' electoral system, where voting is party-based rather than constituency-based, the Opposition, would, as a whole, have won 40 percent of  the seats in parliament since they polled nearly 40 percent of the total votes in this election, which means that in a 100-seat parliament, the Opposition would have won 40 seats! A great performance.
LET US WORK TOWARDS ELECTORAL REFORM, AND PRESS FOR PROPORTIONAL REPRESENTATION.
FRANCIS TAN TC.

New name for SGEP

SGEP was the abbreviation for Singapore General Election Portal. As the general election is over, and the next general election will come in 5 years time, we will rename SGEP as the Singapore Social Economic Portal (and retain the abbreviation of SgEP). This will be done on 1 June 2011. It will continue to post social, economic and political articles of interest to Singaporeans.

Colling off period for General Election

There will be no new posting in this blog of article or comments for Friday and Saturday - to observe the colling off period. Postings will resume on Sunday. 


If you want something to read, you can read the past postings in this blog, or in the general election portal (www.easyapps.sg/sgep) or in the websites of the political parties (see the blog list on the right).


Have a great weekend.

Cast your vote for change on 7 May 2011

Received in a SMS

A week ago, a group of courageous Singaporeans began a campaign to win the hearts and minds of their fellow citizens. They have limited resources but are driven by conviction, passion and a desire to do what is right for Singaporeans. 


They echoed how we feel in their speeches. They inspired us with a vision for a better tomorrow. They fought their best fight they could what what little resources they had to give us a chance to bring about a change in Singapore.


After 45 years, this country has reached a cross-road, these men and women have done all they can against great obstacles to create an alternative path that leads to a better future.


It is now up to us which path we choose to take ... 

Future for our children

Dear Mr Tan
Something happened this morning that prompted me to send this email:-
Early this morning at about 3.30am, i brought my son to the A&E Department of a govt-reconstructed hospital.  There were 3 doctors on duty, out of which 2 are FILIPPINOS, I did not get a closer look or talked to the 3rd one to ascertain her nationality.  This was a vast difference from 1 or 2 years ago when I visited the same A&E department where the doctors spoke in an accent that I am familiar with.
Anyway, after the doctor has examined him, the doctor asked my son to go a nurse who would administer Vandoline to him.  The nurse heard his cough and immediately asked him to cough a few times, and asked him to go back to the doctor to be re-examined.  
Apparently, the sound of his cough could signify that he has contracted a certain virus "Croop" (think so as I can't really understand the Doctor's accent).   He brushed the nurse's comments aside.  
The second time we went in to see the doctor, he heard my son's cough and voice and decided to prescribe a medicine for him, which i think it's for the virus "Croop" as I heard the same nurse saying "I told you just now".
This incident speaks a lot to me:-
(a) The entry to our medicine faculty is very stringent and limited.  I have heard students who can't get into the local university end up going overseas to study medicine.  Isn't it strange that the Goverment are so stringent with fellow Singaporeans and turning away talented Singaporeans, yet so openly embracing foreign doctors?
(b) Do they get Filippino doctors due to lower costs, thereby marginalising our local doctors?  I have seen alot of Filippino nurses in hospitals, this is the first time I see Filippino doctors, 2 out of 3 some more.
Can you imagine the future for our children?  I have always felt our education system is very stressful for children.  The Government have taken away their childhood and now they will be taking away their future if we continue to give mandate to our Government for the slack foreign policy!
A concerned mother


MY REPLY
Many citizens have the same concern. We need to vote alternative people into Parliament on May 7.