Saturday, June 30, 2012
Friday, June 29, 2012
Get a better mortgage
Read the article and case studies from the mortgage broker
http://www.moneysmart.sg/home-loans/how-much-does-a-mortgage-broker-save-you/
http://www.moneysmart.sg/home-loans/how-much-does-a-mortgage-broker-save-you/
Thursday, June 28, 2012
Defensive driving
I drive within the speed limit of 50 km on most roads. If a dog or child that run across the road or a car comes out of the side road unexpectedly, I will be able to stop in time. I wish to avoid a collision or accident, even if I have the right of way.
When crossing a road intersection now, I pay attention to Ferrari or Lexus that may come speeding to beat the light. It does not matter who has the right of way, I do not want to get into their way.
I find young people driving too fast. I advised them to drive more slowly. If there is any unexpected accident, they can be hurt badly. It is better to be safe than sorry. There is no need to be in a rush. Our roads are congested anyway - so allow more time for the travel.
When crossing a road intersection now, I pay attention to Ferrari or Lexus that may come speeding to beat the light. It does not matter who has the right of way, I do not want to get into their way.
I find young people driving too fast. I advised them to drive more slowly. If there is any unexpected accident, they can be hurt badly. It is better to be safe than sorry. There is no need to be in a rush. Our roads are congested anyway - so allow more time for the travel.
Wednesday, June 27, 2012
Poor service for a foreign bank
Dear Mr Tan
I have a housing loan with Bank X for over 10 years now. They have been sending me a monthly statement showing how much I have paid for the month and how much of the loan is still outstanding since we started banking with them in 2001.
From Jan 2012 I have stopped receiving this monthly statement. I called up the bank and the call centre staff gave me many "possible" reasons why I have not been receiving the statement. But none of them seemed to be convincing.
It was only when I scrutinised the Dec 2011 statement that I realised in small print in that at the end of the statement was a statement saying from 2012 hard copy statement will not be sent any more supposedly to save the environment but I suspect it got more to do with saving money than the environment.
I called up the bank and told them I would prefer to receive the hard copy of the statement so that I can keep track of my payment and the amout still outstanding.
The bank said they do not entertain such request and advised me to use their internet banking to check and view the statemen online. Knowing internet banking in Singapore is not one of the easiest thing to manoeuvre I told them I still prefer the hard copy of the statement.They said "No!"
I have 2 questions. Firstly why is it that the staff at the call centre was not aware that Bank X is doing away with hard copy of housing loan repayment statement but instead gave me lots of "possible" reasons why I have stopped receiving the monthly repayment statement. And two, are banks allowed to swich to electronic statement without getting explicit consent from its customers. And even when customers choose to opt in or out of the e-statement the bank still has the final say? What about customers who do not wish to or have no access to internet?
I always thought that foreign banks offer better service than local ones but it seems that in Singapore nowadays companies and organisations are trying hard to outdo each other in seeing who can offer poorer customer service.
Just want to share this with you.
From a customer of Bank X
Absolute liability
It is a crime in Singapore to engage in commercial sex with a person under age 18. Here is a report on the passing of the law in Singapore in 2007.
http://www.channelnewsasia.com/stories/singaporelocalnews/view/300358/1/.html
I did not find any mention that this is an absolute liability case, although some people have made a statement to this effect. I made some research on what is the meaning of absolute liability and found this description in Wikipedia to be enlightening:
Can someone help me to search the law, to see if this offence was declared to be a "absolute liability"?
http://www.channelnewsasia.com/stories/singaporelocalnews/view/300358/1/.html
I did not find any mention that this is an absolute liability case, although some people have made a statement to this effect. I made some research on what is the meaning of absolute liability and found this description in Wikipedia to be enlightening:
Regulatory bodies tend to favour the approach of declaring offences to be strict or absolute liability, because it makes it easier to prosecute people: there is no longer a requirement to demonstrate that the defendant was deliberately intending to commit an offence. Jurists consider such a mechanism to be a blunt instrument, and recommend its use only in limited circumstances:
Absolute liability is used for certain regulatory offences in which it is necessary for individuals engaged in potentially hazardous or harmful activity to exercise extreme, and not merely reasonable, care. Such offences as exceeding 60 kilometres per hour in a 60 kilometre zone, causing pollution to waters, selling alcohol to underage persons, refusing or failing to submit to breath testing and publishing a name in breach of a suppression order. In these cases, the courts accepted that the benefits to the community overrode any potential negative impact on the accused person.According to this explanation, it is a good practice to declare an offence as absolute liability, before it can be treated as such. This will impose a duty of extreme care to be exercised by the potential offender. If it is not declared as such, then the offender can put forward the defense of "mistake of fact".
Can someone help me to search the law, to see if this offence was declared to be a "absolute liability"?
Public consultation on Land Transport Master Plan
I am looking for people interested to discuss and provide suggestions to improve the master plan. If you are interested, please send e-mail to kinlian@gmail.com. We can arrange two or three meetings.
http://app.lta.gov.sg/corp_press_content.asp?start=03am5v9h8w8r7mziwesedz0o2g54qc3w8589p9j6hrvptr4u3v
The closing date to submit feedback is 30 September 2012.
http://app.lta.gov.sg/corp_press_content.asp?start=03am5v9h8w8r7mziwesedz0o2g54qc3w8589p9j6hrvptr4u3v
The closing date to submit feedback is 30 September 2012.
Tuesday, June 26, 2012
Improve bus services
23 June 2012
Editor, Voices
Today Paper
In most buses, there is a display panel to show that the bus is stopping or is about to move off.
This panel can be used to show the sequence number and location of the next bus stop. All the stops should be numbered sequentially for each bus service.
When a passenger wants to know which bus stop to disembark, the bus driver can give the sequence number of the bus stop. The passenger will be able to count the stops to the destination.
I have missed my bus stop on a few occasions when taking the bus at night. If there is such a display, it would have avoided the mishap.
This simple service will be useful for visitors to Singapore or to people who are not familiar with a particular bus service. It is easy for the bus driver to tell them the sequence number of the bus stop to disembark. This will improve the communication and quality of service.
It may even encourage more people to take the bus and help to take away some of the load from our over-crowded trains.
Tan Kin Lian
A re-energized corruption bureau?
Recently, there were many cases of action taken on alleged corrupt practices involving civil servants and non-civil servants. The practices in some of these cases date back many years. In today's paper, the headlines highlight two cases involving a church pastor and a manager of a media company. It seemed that anti-corruption is the order of the day.
I wonder why there are so many corruption cases recently, when there was relative silence in past years. I could guess that the focus must have occurred due to the change of minister for home affairs made after the 2011 general election. Perhaps the previous minister did not consider this matter to be important and the new minister took a different view.
While action against corrupt practices is important, we seemed to go overboard in focusing on this single issue. There are other urgent issues that need to be addressed.
I wonder why there are so many corruption cases recently, when there was relative silence in past years. I could guess that the focus must have occurred due to the change of minister for home affairs made after the 2011 general election. Perhaps the previous minister did not consider this matter to be important and the new minister took a different view.
While action against corrupt practices is important, we seemed to go overboard in focusing on this single issue. There are other urgent issues that need to be addressed.
Benefit illustration are not contractual
Hi Mr. Tan,
They cannot be changed at the whims of the insurer. However, the insurer may not give the fair distribution of the actual results. It is better to invest in a more transparent way, e.g. through an ETF.
I have a question about the recent AIA case. I'd like to clarify that a benefit illustration does not count as a legal contract (as the AIA's defence suggests). If this is true, does that mean the numbers shown in the benefit illustration can be changed by the insurer at any time?
REPLY
The benefit illustration said that the benefits are projected and are based on the projected future investment returns. If the actual investment returns are lower, the actual benefits will be lower. If the actual returns are higher, the actual benefits should be higher.
Monday, June 25, 2012
Message from a great President
RECEIVED BY E-MAIL
"It is indeed worth listening to this great actor who became President of USA!"
Watch this testimony from a former U.S. President
Watch this testimony from a former U.S. President
In recent times, more strident measures have been taken to eliminate God, Christ, and the Bible from the public arena and beyond. Yet, it wasn’t that long ago when another president had some very remarkable things to say. TURN UP YOUR SPEAKERS Watch this and pass it along…
FISCA talks - not to be missed!
TALK FOR THOSE FROM 30 TO 50 YEARS
There is a talk on 30 June 2012. The speaker is Wilfred Ling, a practising financial
adviser. He will be covering topics of special interest to those in the 30 to 50
age group - especially on SRS and CPF.
Many consumers have approached me for views on SRS (Supplementary
Retirement Scheme). Recently, I found that the SRS scheme allows Singaporeans
to save an additional 15% of their earnings in a tax advantaged scheme. You can
attend the talk and learn about how to take advantage of this scheme.
You can also ask Wilfred Ling about the CPF Life options.
DINNER TALK ON 12 JULY
This is the first talk for members. Non-members are also encouraged to
attend and learn about the activities of FISCA.
The dinner will be preceded by a talk about "Investment Scams", conducted
by Tan Kin Lian. These scams are subtle and consumers may not be aware
about them, until they get caught. Do not miss this opportunity to learn how
to identify and avoid these scams.
This will be followed by a dinner. The cost of the dinner is $40 and members
and non-members enjoy a subsidy. Previously, the menu included sharks
fin, which has now been replaced by a soup.
TO REGISTERhttp://easyapps.sg/assn/Org/
There is a talk on 30 June 2012. The speaker is Wilfred Ling, a practising financial
adviser. He will be covering topics of special interest to those in the 30 to 50
age group - especially on SRS and CPF.
Many consumers have approached me for views on SRS (Supplementary
Retirement Scheme). Recently, I found that the SRS scheme allows Singaporeans
to save an additional 15% of their earnings in a tax advantaged scheme. You can
attend the talk and learn about how to take advantage of this scheme.
You can also ask Wilfred Ling about the CPF Life options.
DINNER TALK ON 12 JULY
This is the first talk for members. Non-members are also encouraged to
attend and learn about the activities of FISCA.
The dinner will be preceded by a talk about "Investment Scams", conducted
by Tan Kin Lian. These scams are subtle and consumers may not be aware
about them, until they get caught. Do not miss this opportunity to learn how
to identify and avoid these scams.
This will be followed by a dinner. The cost of the dinner is $40 and members
and non-members enjoy a subsidy. Previously, the menu included sharks
fin, which has now been replaced by a soup.
TO REGISTERhttp://easyapps.sg/assn/Org/
Sunday, June 24, 2012
License for taxi drivers
Malaysia is considering to issue taxi licenses to individual taxi drivers, instead of companies. The government thinks that this may be better for the welfare of the taxi drivers.
http://theonlinecitizen.com/2012/06/rethinking-singapores-defence-needs/
http://theonlinecitizen.com/2012/06/rethinking-singapores-defence-needs/
Review our defense needs
This article contains a good analysis of our defense expenditure and options to make changes for the future.
http://theonlinecitizen.com/2012/06/rethinking-singapores-defence-needs/
http://theonlinecitizen.com/2012/06/rethinking-singapores-defence-needs/
Diary of a Singapore Mind
I encourage you to visit this blog regularly.
http://singaporemind.blogspot.sg/
I like the insightful articles written by Lucky Tan. He carries out his research diligently and write well.
http://singaporemind.blogspot.sg/
I like the insightful articles written by Lucky Tan. He carries out his research diligently and write well.
Digital display in bus
I suggest that the bus companies should show the stop number and the location of the next bus stop, e.g. "Stop 15: Thomson Plaza."
The stop number should be numbered sequentially for the specific bus service. If a passenger ask the bus driver on the bus stop for Thomson Plaza, the bus driver can say Stop 15. The passenger will be able to know how many remaining stops to reach the destination.
This is similar to the station number in the train, e.g. NS1, NS2, NS3. It is easy for visitors and tourists. It is also useful for locals who may be travelling on an unfamiliar service.
Saturday, June 23, 2012
Nursing homes in Johore Bahru
A nursing home has opened a branch in Johore Bahru to provide the service at half of the cost of Singapore. http://www.todayonline.com/Singapore/EDC120623-0000069/Singapore-nursing-homes-open-more-affordable-branches-in-JB
To make it convenient for family members to keep in touch with their elderly facilities, I suggest that they should install Skype facility. The staff can arrange for the residents to talk to their family members on a weekly basis. This is an additional channel of communication, and should not replace the visits by the family members.
To make it convenient for family members to keep in touch with their elderly facilities, I suggest that they should install Skype facility. The staff can arrange for the residents to talk to their family members on a weekly basis. This is an additional channel of communication, and should not replace the visits by the family members.
Choices for Singapore
Prime Minister Lee has framed the question - do you want to pay higher taxes for more welfare benefits, like the Scandinavian countries?
This is not the right way to frame the question. In the Scandinavian countries, the people who pay higher taxes are those with bigger incomes, and not the ordinary wage earners. So, the correct question should be - do you want a progressive tax system that require the higher income earners to pay more taxes, so that the Government can give better welfare benefits - and create a more equal society?
You can read the argument here:
http://therealsingapore.com/content/hard-truthlee-hsien-loong-good-businessman-not-good-pm
This is not the right way to frame the question. In the Scandinavian countries, the people who pay higher taxes are those with bigger incomes, and not the ordinary wage earners. So, the correct question should be - do you want a progressive tax system that require the higher income earners to pay more taxes, so that the Government can give better welfare benefits - and create a more equal society?
You can read the argument here:
http://therealsingapore.com/content/hard-truthlee-hsien-loong-good-businessman-not-good-pm
How to read a benefit illustration
When an insurance agent (or financial adviser) recommends a life insurance policy to you, the agent has to give you a benefit illustration.
This is an important document. You have to read it carefully and understand its contents. This article explains what you have to look out for, to see if this policy gives you an acceptable return.
http://tankinlian.com/FramePDF.aspx?ID=652
When a consumer writes to ask me about a life insurance policy, I always ask them to send the benefit illustration to me. I look for the points set out in this article to see if the life insurance policy is worth investing in.
This is an important document. You have to read it carefully and understand its contents. This article explains what you have to look out for, to see if this policy gives you an acceptable return.
http://tankinlian.com/FramePDF.aspx?ID=652
When a consumer writes to ask me about a life insurance policy, I always ask them to send the benefit illustration to me. I look for the points set out in this article to see if the life insurance policy is worth investing in.
Friday, June 22, 2012
Wasteful practices
The petrol station that I frequently was demolished recently. The pump attendant had told me a few months ago that their company lost the tender for the renewal of the lease and a new petrol station would be taking over. I did not realize that this meant a total reconstruction work for the petrol station.
I have been quite unhappy about wasteful practices that jack up the cost of living and the cost of doing business in Singapore. The previous petrol station was in good condition. It has to be torn down and replaced by a more expensive development paying a higher cost of occupancy. It must result in a higher cost of living.
Already, Singapore has become quite an expensive place to live in, and wages are still quite modest. We have to stop the wasteful practices and higher operating cost.
I have been quite unhappy about wasteful practices that jack up the cost of living and the cost of doing business in Singapore. The previous petrol station was in good condition. It has to be torn down and replaced by a more expensive development paying a higher cost of occupancy. It must result in a higher cost of living.
Already, Singapore has become quite an expensive place to live in, and wages are still quite modest. We have to stop the wasteful practices and higher operating cost.
Different strokes of justice
The recent spate of court sentences has got
Singaporeans wondering
whether judicial decisions favour the elite.
“These may be early days,
but unless the Government acts decisively
it may affect the court’s integrity,”
one lawyer commented.
“Don’t forget,
justice lies very much in the hands of judges and prosecutors,
who mostly hail from the elite class.”
http://thestar.com.my/news/story.asp?file=/2012/6/23/focus/11533036&sec=focus
Singaporeans wondering
whether judicial decisions favour the elite.
“These may be early days,
but unless the Government acts decisively
it may affect the court’s integrity,”
one lawyer commented.
“Don’t forget,
justice lies very much in the hands of judges and prosecutors,
who mostly hail from the elite class.”
http://thestar.com.my/news/story.asp?file=/2012/6/23/focus/11533036&sec=focus
Fees charged by private hospitals
Here are the charges for various treatment in private and public hospitals. Patients should ask for a fee estimate before accepting treatment in a private hospital - to avoid unpleasant surprises.
http://tankinlian.com/FramePDF.aspx?ID=659
http://tankinlian.com/FramePDF.aspx?ID=659
Thursday, June 21, 2012
Pinnacle Notes case in US courts
Here is an update of the ongoing case in the US courts
http://www.businesstimes.com.sg/premium/top-stories/pinnacle-notes-investors-want-mediation-stay-secret
http://www.businesstimes.com.sg/premium/top-stories/pinnacle-notes-investors-want-mediation-stay-secret
Service standard on the bus
Alvin Tan commented
Alvin wrote: "Its not experience that makes the ride smooth, its the professionalism & pride in service that makes the ride smooth.
In Europe, Australia, Japan etc, the service providing staff pride themselves in giving commuters a good experience by; greeting them when they board, calling at all stops (regardless flagged or not) briefly, take a moment to check on elderly/ disabled passengers, and they enforce all passengers to be seated (nobody should be standing) etc. And they never swing out of bus bays recklessly.
Here in Sg, everything that's wrong by service & safety standards is attempted almost to perfection."
Minimum wage for specified sectors
The NTUC chief gave this reasons why he opposed minimum wage for specified sectors. He had also opposed a general minimum wage.
http://www.todayonline.com/Singapore/EDC120622-0000047/Raising-wages--Use-a-ladder,-not-a-floor
Although there are difficulties in a minimum wage system, many countries have overcome them, including Hong Kong. These difficulties are exaggerated.
http://www.todayonline.com/Singapore/EDC120622-0000047/Raising-wages--Use-a-ladder,-not-a-floor
Although there are difficulties in a minimum wage system, many countries have overcome them, including Hong Kong. These difficulties are exaggerated.
High bid for Farrer Drive site
The projected selling price for this new development is too high.
http://www.todayonline.com/Business/EDC120622-0000055/S$113m-top-bid-for-Farrer-Drive
Will this be the last high bid before the likely fall?
http://www.todayonline.com/Business/EDC120622-0000055/S$113m-top-bid-for-Farrer-Drive
Will this be the last high bid before the likely fall?
Microsoft's Surface Tablet
This new device from Microsoft is exciting
https://mail.google.com/mail/?shva=1#inbox/13811511ec5708e7
I agree with the optimism. I believe that Microsoft will succeed with this gadget. There are many people who are now using Windows on PC. They will move to the Surface tablet.
This could be a big challenge to Apple.
https://mail.google.com/mail/?shva=1#inbox/13811511ec5708e7
I agree with the optimism. I believe that Microsoft will succeed with this gadget. There are many people who are now using Windows on PC. They will move to the Surface tablet.
This could be a big challenge to Apple.
A competent lawyer
Lawyer Subhas Anandan does his best for his clients.
http://www.tremeritus.com/2012/06/22/underage-prostitute-case-shrewd-calculated-defence-move-by-subhas-anandan/
http://www.tremeritus.com/2012/06/22/underage-prostitute-case-shrewd-calculated-defence-move-by-subhas-anandan/
A more convenient journey
 |
| Beats standing in a crowded train |
It was more convenient than taking a feeder bus to the Yio Chu Kang station and transfer to two trains.
I find the bus more comfortable and convenient than the train. It usually provides better connection and require less walking.
I encourage commuters to learn how to take the bus. You may find a better connection that the train. I also find it more convenient to take the bus, rather than drive on the crowded roads and to search for a parking space.
High cost of nursing care
Many Singaporeans are not able to afford the high cost of nursing care for their parents. They belong to the sandwiched generation, who have to take care of parents and their children. The Government can, and should, play a bigger role.
http://singaporemind.blogspot.sg/2012/06/dire-consequences-of-policy-of-over.html
http://singaporemind.blogspot.sg/2012/06/dire-consequences-of-policy-of-over.html
Wednesday, June 20, 2012
Too good to be true
Dear Mr. Tan,
Can you kindly do some research on (name removed) and do a write up in your blog. This Company, which is banned in Malaysia, is selling "discounted" Gold bars in Singapore and paying buyers 2% interest per month for 12 months. It sounds too good to be true. I heard they were placed under MAS Alert List.
REPLY
Read the following
http://www.tankinlian.com/Information.aspx?q=gold
Prevent corrupt practices
17 June 2012
Editor
Forum Page
Straits Times
Over the past decades, Singapore has built up a good reputation for being
relatively free of corrupt practices.
The two recent cases of alleged indiscretions involving the award of I.T.
software contracts has exposed a weakness in our system. The people involved
in negotiating and recommending the contacts are often reporting
to the people who take the decision in the award of the contracts.
I suggest that the award of contracts above a certain sum, say $250,000, should be decided
by an independent panel of knowledgeable persons who are independent of the actual operations.
Suitable people for this panel are retired civil servants or business leaders who are people of repute,
have held past senior positions in the respective fields, are no longer in active occupation
and are free of any potential conflict of interest. A different panel could be formed for each tender award.
These members of the panel should be paid a respectable honorarium for the time that
they that have to spend to make the decision. As the amounts involved are large, the
cost of this layer of decision making could be justified by the potential saving in
preventing corrupt practices.
Tan Kin Lian
Tuesday, June 19, 2012
A new social and economic order
This video shows a new social and economic system, which depends on lower energy consumption and lower economic growth. http://www.youtube.com/watch?v=Sv2MHEDlXlU
Promote the use of buses
15 June 2012
Editor
Forum Page
Straits Times
The Land Transport Authority has been struggling for over a year to find a
solution to the over-crowding on trains, congestions on our roads and insufficient
parking spaces.
I wish to suggest a practical measure that can give a immediate and temporary solution to
these challenges.
Many people may not realize that it is often more convenient to take a bus instead of
a train or a car for their journey.
I started to use the bus service more regularly during the past year and, after becoming more
familiar with the bus services, now prefer this mode of travel. It takes away the stress of
driving on our congested roads or searching for a parking space. I now use an mobile app
to tell me the bus services to take for my journey.
On many occasions, I found that taking a bus is more convenient that travelling on our
over-crowded trains. I was able to find a seat on the bus for most of the journey, enjoy the
air conditioned comfort and read the news on my mobile device.
Recently, I helped a friend to find a bus alternative to commute to her home. She was taking two trains
and one hour for the journey for almost two years. She was surprised to learn that there was
a direct bus that took only 40 minutes and the fare was cheaper.
If more people become familiar with the bus services, some may find that they do not need to own a car
or to drive it to work. This would reduce the congestion on our road and improve our road situation.
I hope that the Land Transport Authority will consider my suggestion to promote greater awareness
of the convenience of our bus services and the use of the mobile app to find the best way to travel.
Monday, June 18, 2012
FISCA Dinner Talk
FISCA is organizing a dinner talk for members and non-members. This is for members to get together and meet each other and to meet the committee members. We encourage non-members to attend as well to learn about the activities of FISCA and to join as members in the future.
The dinner is subsidized by FISCA. You pay less than the actual cost of the dinner. The venue is within walking distance of City Hall MRT station.
Details of the dinner talk can be found here:
http://www.easyapps.sg/assn/FramePDF.aspx?ID=247
You can register at
http://easyapps.sg/assn/Org/Event.aspx?id=5
The dinner is subsidized by FISCA. You pay less than the actual cost of the dinner. The venue is within walking distance of City Hall MRT station.
Details of the dinner talk can be found here:
http://www.easyapps.sg/assn/FramePDF.aspx?ID=247
You can register at
http://easyapps.sg/assn/Org/Event.aspx?id=5
Sale of life insurance policy to a student
A student was advised by an insurance agent to buy a life insurance policy as a form of savings. He was not told that if he could not continue with the regular savings, he would suffer a loss of a large part of his savings, as the cash value is much less that the premiums paid. As he did not have a regular income, he could not continue to pay the premium and had to suffer a large loss.
The student asked for my views, if the insurance agent is contravening section 27 of the Financial Adviser's Act, as the agent failed to take reasonable steps to make sure that the policy was suitable for the student. How can the policy be suitable, when the student did not have a steady source of income to pay the premium?
I replied that the student had a valid point and asked him to write a statement along the following lines:
a) state what investment product you were recommended to buy and the circumstances in which you were made to invest in the product
b) state why it was not suitable to you
c) state the wordings of section 27 that apply to this infringement
d) state how you have lost on the investment
e) state why you were not aware about the bad recommendation earlier and how you find out about it now.
Another student was sold a similar policy by the marketing officer in the bank. The mother brought up the case to me. She asked how it was possible for the bank officer to determine that the life insurance policy, which also required regular savings to be made over a long period of time, was suitable to a student who did not have a regular source of income?
I wish to call on other students, who had been mis-sold a life insurance policy and was not told about the potential loss of savings, to come forward and write a similar statement.
Sunday, June 17, 2012
Intelligence Quiz
I printed 3 volumes of the Intelligence Quiz. It is a test of logic and is based on the original quiz that was purported to be created by Dr. Albert Einstein. It was popular two years ago, but had since been overlooked.
My friend in Kuala Lumpur told me that he gave my book to his niece two years ago, but she as not interested at that time. Recently, she found the book and tried the puzzle. She became addicted to it and is now asking for additional volumes. It seemed suitable for children after they reach a certain age.
For those who are interested to try this quiz, you can buy it at www.tankinlian.com/ishop.
My friend in Kuala Lumpur told me that he gave my book to his niece two years ago, but she as not interested at that time. Recently, she found the book and tried the puzzle. She became addicted to it and is now asking for additional volumes. It seemed suitable for children after they reach a certain age.
For those who are interested to try this quiz, you can buy it at www.tankinlian.com/ishop.
Kuala Lumpur International Airport
The Malaysian authorities have done away with the disembarkation card and the custom form. This has now been confirmed on my visit to Kuala Lumpur. I first observed this change two months ago when I visited Penang but I was not sure if it was a temporary arrangement, e.g. they run out of cards, or was made only for Penang.
At KL, I was required to scan my index fingers for verification, but the process was fast. A year ago, I had to scan all the fingers and thumbs and the process was long. It took 3 hours to cleared the queue at that time. The authorities had probably learned that it was not necessary to verify all the ten prints and that two prints are sufficient!
I am happy to see that the Malaysian authorities had been progressive in getting rid of unnecessary requirements, i.e. the entry cards, and have used technology in a sensible way. It is time for Singapore and other Asean countries to learn from Malaysia and get rid of the unnecessary cards and forms.
At KL, I was required to scan my index fingers for verification, but the process was fast. A year ago, I had to scan all the fingers and thumbs and the process was long. It took 3 hours to cleared the queue at that time. The authorities had probably learned that it was not necessary to verify all the ten prints and that two prints are sufficient!
I am happy to see that the Malaysian authorities had been progressive in getting rid of unnecessary requirements, i.e. the entry cards, and have used technology in a sensible way. It is time for Singapore and other Asean countries to learn from Malaysia and get rid of the unnecessary cards and forms.
FISCA Talks for Organizations
The mission of the Financial Services Consumer Association (FISCA) is to educate consumers on financial planning, investments and insurance. FISCA is a consumer based association and has no connection with any financial institution. We give tips and advice that are in the best interest of consumers. Website: www.fisca.sg
By investing in the right way, a consumer can get a much higher return, compared to the return from most financial products that are sold to them. The difference for an average consumer could be $200,000!
FISCA is able to offer the following talks to organizations for their employees and members, to be held in your premises.
More details here:
http://www.easyapps.sg/assn/FramePDF.aspx?ID=249
Saturday, June 16, 2012
Bad call center service in Singapore
The Consumer Association conducted a survey and found the quality of call center services to be quite bad. Read this report. http://www.tremeritus.com/2012/06/17/majority-of-respondents-unhappy-with-attitude-of-call-centre-staff/
The difference between bad service and excellent services is a simple step, But many organizations refuse to take this step, preferring to adopt the same method, and refusing to make a change.
I wish to share my experience here. http://tankinlian.com/FramePDF.aspx?ID=140
The difference between bad service and excellent services is a simple step, But many organizations refuse to take this step, preferring to adopt the same method, and refusing to make a change.
I wish to share my experience here. http://tankinlian.com/FramePDF.aspx?ID=140
Green Post
I registered for Green Post (https://www.gogreenpost.com/) a few months ago. This is an excellent website. But, they had little success and take-up, and it reflects the sad state of affairs in Singapore. I wish to share my experience and to reflect on our problems and what should be done to correct the wastefulness that is now typical of Singapore.
First, I was surprised to find that only a few organizations signed up for Green Post, i.e. two telephone companies and 1 utility company and some small companies. It seemed to be quite troublesome to register, so I did not try at that time.
I received an e-mail about a contest. It seemed that the largest highest score was 7 points. The participant get 1 point for registering for a service and to 1 point to refer a friend. So, the take-up must be poor, in spite of an excellent website.
I located my telephone and utility bills for these three participating organizations and made the effort to register. It was quite troublesome - due primarily to the requirements of the participating organizations. I had to provide several pieces of information that was not available to me. The requirement of Sing Tel was particularly difficult, as I had to provide a Sing Net address (which I do not have) or a mobile number registered with them (which I do not have). I only had a fixed line. I also failed to register to Starhub, also due to their difficult technical requirement (have to download a Java script which failed). After putting in much effort, I only managed to register for SP Services.
I am resigned to continue to receive my monthly statements through the post. This is good for Singapore Post, but is bad for the economy. What a wasteful country - this Singapore.
The problem is the unnecessary requirements regarding "security". Each organization felt that they had to authenticate the identity of their customer in their own peculiar way, forgetting that most customers do not remember the secret passwords and other long forgotten personal data.
It would have been easier for them to accept a login through Sing Pass or for the customer to upload a signature. We need a simpler way to authenticate a person through the website, instead of the separate methods (often ridiculous methods) used by different organizations.
Singapore may claim to be advanced in the use of technology, but if you look at the huge volumes of paper mails that are being sent around, we are indeed very inefficient and wasteful.
First, I was surprised to find that only a few organizations signed up for Green Post, i.e. two telephone companies and 1 utility company and some small companies. It seemed to be quite troublesome to register, so I did not try at that time.
I received an e-mail about a contest. It seemed that the largest highest score was 7 points. The participant get 1 point for registering for a service and to 1 point to refer a friend. So, the take-up must be poor, in spite of an excellent website.
I located my telephone and utility bills for these three participating organizations and made the effort to register. It was quite troublesome - due primarily to the requirements of the participating organizations. I had to provide several pieces of information that was not available to me. The requirement of Sing Tel was particularly difficult, as I had to provide a Sing Net address (which I do not have) or a mobile number registered with them (which I do not have). I only had a fixed line. I also failed to register to Starhub, also due to their difficult technical requirement (have to download a Java script which failed). After putting in much effort, I only managed to register for SP Services.
I am resigned to continue to receive my monthly statements through the post. This is good for Singapore Post, but is bad for the economy. What a wasteful country - this Singapore.
The problem is the unnecessary requirements regarding "security". Each organization felt that they had to authenticate the identity of their customer in their own peculiar way, forgetting that most customers do not remember the secret passwords and other long forgotten personal data.
It would have been easier for them to accept a login through Sing Pass or for the customer to upload a signature. We need a simpler way to authenticate a person through the website, instead of the separate methods (often ridiculous methods) used by different organizations.
Singapore may claim to be advanced in the use of technology, but if you look at the huge volumes of paper mails that are being sent around, we are indeed very inefficient and wasteful.
Friday, June 15, 2012
Reduce the occupancy cost
12 June 2012
Editor
Forum Page
Straits Times
The Government has announced that the tenure on industrial sites will be reduced from 60 years
to 30 years to make them more "affordable" to industrial users.
I urge our Government leaders to get away from the "asset values" mindset and to think about
operating cost. The cost of doing business is determined by the occupancy or rental cost
of the premises and not the cost of owning the property.
The proper way to reduce the occupancy cost is to increase the supply of industrial property
or reduce property tax, development charge and other levies. Changing the tenure of the lease does
not, by itself, impact the occupancy cost.
As the largest landowner in Singapore, the Government can reduce the occupancy
cost more effectively by releasing more land. This has to be done through a deliberate policy of the
Government, as the officials responsible for the use of state land have to operate under the target
of achieving the highest possible return on their assets.
Tan Kin Lian
Student misled into buying a life insurance policy
Hi Sir,
I would like to ask how to get justice for the loss that I suffered on my Prucash endowment policy bought in 2007.
My objective was to have a saving plan. I was induced by my agent who told me that I could earn interest of 3% p.a. but this rate was not guaranteed.
After paying more than $4,000 in premium for the past four years, I was shocked to learn that the surrender value was only $1,000. As an undergrad student, I found it difficult to service this policy.
I felt cheated by the misrepresentation made by the agent. I wanted to get back all of my savings from Prudential, but it was not possible. I face a difficult decision whether to terminate the policy and loss the $4,000 or to continue till maturity and get a low return. It seemed to be a lose-lose situation for me. Is there any way for me to mitigate my damages?
REPLY
Who was the agent who sold the policy to you? How did you know this agent? Are you able to find the agent now and ask for an explanation?
COMMENT
Students should not commit to a life insurance policy. It may not suit their needs and they face the risk of losing a large part of their savings.
Corporate Portal for Tan Kin Lian & Associates
You can find some of the services provided by Tan Kin Lian & Associates in this Corporate Portal
http://easyapps.sg/corp/Info.aspx?ID=6
http://easyapps.sg/corp/Info.aspx?ID=6
Wednesday, June 13, 2012
Invest for the long term, and avoid speculation
Hello Mr Tan,
I am now serving my national service. I am new to stock investing using fundamental analysis. I am saving up this two years of my NS pay to fund my university studies. I am looking to get into a investment course to learn the basics of stock investing and one day, work for a big investment firm. I want to start reading on stock investing now. I would really appreciate it if you can suggest a few book to start off.
REPLY
I recommend long term investing and do not encourage trading, through technical analysis or other methods. Read this FAQ to learn about long term investing. If you want more articles, read a selection here
We have enough Singaporeans
Here is a hard hitting article about the bad deal for Singaporeans. Article
Nursing home in Bishan
Residents in Bishan are against the building of a nursing home near their high value HDB flats. Article. So are residents in other parts of Singapore. What is the solution? I urge the Government to build a retirement village in Lim Chu Kang and to make it a car fee zone. Local buses and taxis can operate within the village, and express buses can bring the residents to other parts of Singapore or their children to see the old folks.
Myths from the Financial Meltdown
This is a long article, but it is worth reading a few times. Article.
Singapore is an expensive city for travellers
Here is another worrisome news. Singapore is becoming more expensive, even for travelers. Article. With all these big challenges, are our Government ministers really competent to deal with them?
Bursting of the property bubble
Many people think that the Government will be able to control the property market to keep it from a collapse. I have seen the property market burst a few times - so I shall share with you what is a possible scenario, and why the Government will not be able to stop a collapse.
Suppose there is panic with the Euro or the US dollar, due to the economic crisis in Europe or America. We have read about the big and unsustainable deficits and the printing of money to support the economy. Many analysts are predicting various types of possible dire consequences.
You may say - well, that is Europe and America. It should not affect the Singapore property market. In 1998, during the Asian Financial crisis, interest rate shot up to 20 percent in Singapore. People, who borrowed money from the banks were suddenly asked to pay back the loans. They have to sell their properties at distressed prices.
If there is a financial crisis in 2012, which is possible, the people who have to dump their properties at distressed prices could be the foreigners and local speculators who were over-stretched and had bought expensive properties at astronomical prices. When they dump their properties at distressed prices, can the rest of the property market hold up?
During the 2004 crisis, the Singapore property market was saved by a smart move by the Government to allow borrowers to re-pledged their properties to the banks at higher priority over the CPF savings. This allows the bank to report the mortgages as safe, so there was no need for the properties to be foreclosed.
The next crisis could be different, as the properties prices are much higher now, and many borrowers could be foreigners or local speculators who do not have this CPF cushion. This is just a random thought - and I might be wrong!
Suppose there is panic with the Euro or the US dollar, due to the economic crisis in Europe or America. We have read about the big and unsustainable deficits and the printing of money to support the economy. Many analysts are predicting various types of possible dire consequences.
You may say - well, that is Europe and America. It should not affect the Singapore property market. In 1998, during the Asian Financial crisis, interest rate shot up to 20 percent in Singapore. People, who borrowed money from the banks were suddenly asked to pay back the loans. They have to sell their properties at distressed prices.
If there is a financial crisis in 2012, which is possible, the people who have to dump their properties at distressed prices could be the foreigners and local speculators who were over-stretched and had bought expensive properties at astronomical prices. When they dump their properties at distressed prices, can the rest of the property market hold up?
During the 2004 crisis, the Singapore property market was saved by a smart move by the Government to allow borrowers to re-pledged their properties to the banks at higher priority over the CPF savings. This allows the bank to report the mortgages as safe, so there was no need for the properties to be foreclosed.
The next crisis could be different, as the properties prices are much higher now, and many borrowers could be foreigners or local speculators who do not have this CPF cushion. This is just a random thought - and I might be wrong!
Government should be accountable and transparent
This writer has raised some concerns that Singaporeans should be aware of. Article. While I believe that our Government is basically honest, it is better for them to be more accountable and transparent, rather than to allow doubts to be raised.
Monday, June 11, 2012
Property bubble
It is easy to create a property bubble. The owners of land can collectively create a shortage of supply. The higher demand, relative to the short supply, will push up the price of the properties. This will create a panic among the end users that the property prices will soon become unaffordable, so they rush to buy the properties now. Speculators come in to drive up the prices faster and make a trading profit. The buying is fueled by low interest rate and easy credit terms offered by the banks. There - you have got a property bubble.
In Singapore, the supply of land is under the hands of a few land owners. The state is the largest owner. Most of the land available for development came from the sale of state land. The property developers who bought the state land at a high price on tender have a vested interest to control the supply and maximize their profits.
The structure of the land ownership and the Government policy adopted in Singapore have resulted in an escalation of the property prices to unaffordable levels. The average price of a 4 room HDB flat in a remote area in Singapore is now higher than the an average house, sitting on a large piece of land, in most towns in America.
As the property bubble continues to grow, the Government can proudly say that they are enhancing the value of the assets of Singaporeans. But, this economic strategy is unwise.
How long can the property bubble continue to grow? Not much longer, in my view. It has reached a crazy level and is being sustained by fear, greed and speculation. There are foreign buyers, including speculators hoping to make a profit. When the bubble burst, it will be the local Singaporeans who will be holding the can.
If we study the experience of property bursts in Japan, Ireland, Spain and America, the conclusion is that it will take a long time for the property to recover. This will be a big drag on the banking system and on the people who face negative equity on their property.
In Singapore, the supply of land is under the hands of a few land owners. The state is the largest owner. Most of the land available for development came from the sale of state land. The property developers who bought the state land at a high price on tender have a vested interest to control the supply and maximize their profits.
The structure of the land ownership and the Government policy adopted in Singapore have resulted in an escalation of the property prices to unaffordable levels. The average price of a 4 room HDB flat in a remote area in Singapore is now higher than the an average house, sitting on a large piece of land, in most towns in America.
As the property bubble continues to grow, the Government can proudly say that they are enhancing the value of the assets of Singaporeans. But, this economic strategy is unwise.
How long can the property bubble continue to grow? Not much longer, in my view. It has reached a crazy level and is being sustained by fear, greed and speculation. There are foreign buyers, including speculators hoping to make a profit. When the bubble burst, it will be the local Singaporeans who will be holding the can.
If we study the experience of property bursts in Japan, Ireland, Spain and America, the conclusion is that it will take a long time for the property to recover. This will be a big drag on the banking system and on the people who face negative equity on their property.
In a recent keynote speech to the Economic Society of Singapore, PM Lee Hsien Loong talked about the strategy on economic growth. Full speech.
There are two points in his speech that I dislike:
a) He referred to "targeted assistance". This means writing rules on which gets and who does not get. These rules are usually arbitrary, complicated and unfair to those who are excluded at the margin. Those who benefit are happy; but those who are excluded are not. This divides our people and create a selfish culture.
b) He said that the government may not be able to boost the income, but they are able to boost the value of the assets. It is easy to inflate asset values, e.g. build a property bubble, but it has cannot be sustained and has to burst one day, with serious consequences. Even if it is supported at a high level, the younger generation will pay for it through high prices and 30 year loans. This strategy is bad for the people.
There are two points in his speech that I dislike:
a) He referred to "targeted assistance". This means writing rules on which gets and who does not get. These rules are usually arbitrary, complicated and unfair to those who are excluded at the margin. Those who benefit are happy; but those who are excluded are not. This divides our people and create a selfish culture.
b) He said that the government may not be able to boost the income, but they are able to boost the value of the assets. It is easy to inflate asset values, e.g. build a property bubble, but it has cannot be sustained and has to burst one day, with serious consequences. Even if it is supported at a high level, the younger generation will pay for it through high prices and 30 year loans. This strategy is bad for the people.
Competition in education
I do not like the competition in the schools to get top grades and to win scholarships. This is unfair to children from poorer families and breed the culture of "self first". It also destroys the childhood of our young. Here is a view from a parent.
Saturday, June 9, 2012
FISCA Educational Talks
Here are the educational talks organised by FISCA over the next few months. Please register early. Spend time to educate yourself and avoid losing a lot of money on bad investments, including life insurance policies. http://easyapps.sg/assn/Org/Event.aspx?id=5
An App to improve your vocabulary
Here is an app to improve your vocabulary. It can run on an iPhone or iPad.
http://itunes.apple.com/us/app/bright-words/id509197299?ls=1&mt=8
The app is called Bright Words. It allows several people to compete and
find out who can get most of the words correct. It can also be played in a
single player mode, to improve your vocabulary.
The Free version test words up to 4 letters. The paid version test words up to
8 letters.
The webpage also shows other apps developed by Tan Kin Lian & Associate.
Besides being fun, it allows you to develop a flexible mind and develop your
skill of problem solving.
You can try with the free version, and upgrade to the paid version.
Please help me to forward this letter to your friends.
Scams
Dear Kin Lian:
This youtube video features syndicates that prey on the old and unemployed. They use tactics from other industries such as real estate investment, forex trading, app building,etc....
I hope you can share it with readers of your blog. We need to tell retirees and unemployed that can ill afford to lose their money.
Jim
Regulate the Internet
Many people will be appalled by the proposals to regulate the Internet that are being considered by China. Article and will condemn China for this additional "repressive" measure.
In my view, these measures are necessary and sensible. The new law will require the websites, blogs and micro-blog owners to ensure that the people who contribute their opinions are registered with a true identity. It is important that people act in a responsible manner towards other people, in the Internet and in the real world. Many of the behaviors in the Internet by anonymous people are not acceptable.
At present, China banned many social media blogs and websites. This is too harsh a measure, but they found it to adopt this measure to control the irresponsible behavior - which could incite hatred and violence.
After the new law is implemented, I expect China to take the bold step or allowing the social media to develop. This would be a clear statement that China is not repressive, and can show a good example to the rest of the world on getting the right balance between free speech and responsibility.
But, I could be wrong in my optimism. Let us wait and see.
In my view, these measures are necessary and sensible. The new law will require the websites, blogs and micro-blog owners to ensure that the people who contribute their opinions are registered with a true identity. It is important that people act in a responsible manner towards other people, in the Internet and in the real world. Many of the behaviors in the Internet by anonymous people are not acceptable.
At present, China banned many social media blogs and websites. This is too harsh a measure, but they found it to adopt this measure to control the irresponsible behavior - which could incite hatred and violence.
After the new law is implemented, I expect China to take the bold step or allowing the social media to develop. This would be a clear statement that China is not repressive, and can show a good example to the rest of the world on getting the right balance between free speech and responsibility.
But, I could be wrong in my optimism. Let us wait and see.
Scope for minimum wage in Singapore
This article reported that a few government leaders and pro-establishment bodies are now in favor of setting a minimum wage for certain occupations. It takes a long, long time for these people to realize the harm that is being caused to our society by the lack of such a basic measure to protect the citizens.
The article failed to mention the Public Forum that was held yesterday (9 June 2012) by a non-government organization. Article. This forum featured passionate speakers who have spoken on this issue on many occasions in the past. It is quite sad to see the media ignore people who have not been in the forefront of this issue, and give prominence to other people who were not really passionate about this matter but happened to be pro-establishment!
We need a more independent and unbiased media to improve the engagement of the citizens in Singapore.
The article failed to mention the Public Forum that was held yesterday (9 June 2012) by a non-government organization. Article. This forum featured passionate speakers who have spoken on this issue on many occasions in the past. It is quite sad to see the media ignore people who have not been in the forefront of this issue, and give prominence to other people who were not really passionate about this matter but happened to be pro-establishment!
We need a more independent and unbiased media to improve the engagement of the citizens in Singapore.
Protect the citizens
Dear Mr. Tan,
It seems that HK not only beats Singapore in term of more competitive in economic ranking yet manage to protect its citizens from investment fraud. Unlike our MM & SM of that time saying that investors go in with their eyes open or PM was reportedly saying "let the buyer beware" instead of admitting that MAS failure to regulate, banking malpractice and government inaction were to blame. The current Education Minister is the CEO of MAS at that time.
Regards
Steve
http://www.martinlee.sg/hk-minibond-investors-to-receive-further-payout/
Bailout for Spanish banks
Spain needs US $125 billion to bail out its banks, due to the collapse in the property market. Report. Other countries, e.g. Ireland, America and Japan, have also suffered similar difficulties due to the bursting of the property bubble.
Many people may not realize that the financial crisis is caused by the ridiculous accounting policy called "mark to market". When the property prices appreciate, and this is called a bubble, all owners and the banks report billions of dollars of "wealth" being created. When the property prices fall, we have a financial crisis!
We are destined to have financial crisis, so long as the ridiculous accounting treatment called "marked to market" is still being followed. Many decades ago, it was the practice to keep assets at book value and to provide for depreciation in the value of the assets. It was not prudent to mark the assets to their "market value", until the assets are sold. This is a more sensible approach.
This will force the asset owners to sell their assets to realize their market value. They will find that the so-called market value is not the real value, as there are limited buyers for the large holdings of assets among the owners who are keen to realize their profits. This is the real world, and it will not show the asset values appreciated madly, and will not encourage over-investment that will lead to the banking crisis now faced by Spain, but was quite common in the other countries.
To have a more stable financial system, we need to remove the ridiculous practice of "mark to market".
Many people may not realize that the financial crisis is caused by the ridiculous accounting policy called "mark to market". When the property prices appreciate, and this is called a bubble, all owners and the banks report billions of dollars of "wealth" being created. When the property prices fall, we have a financial crisis!
We are destined to have financial crisis, so long as the ridiculous accounting treatment called "marked to market" is still being followed. Many decades ago, it was the practice to keep assets at book value and to provide for depreciation in the value of the assets. It was not prudent to mark the assets to their "market value", until the assets are sold. This is a more sensible approach.
This will force the asset owners to sell their assets to realize their market value. They will find that the so-called market value is not the real value, as there are limited buyers for the large holdings of assets among the owners who are keen to realize their profits. This is the real world, and it will not show the asset values appreciated madly, and will not encourage over-investment that will lead to the banking crisis now faced by Spain, but was quite common in the other countries.
To have a more stable financial system, we need to remove the ridiculous practice of "mark to market".
Improve your vocabulary
Here is an iPhone App that improves your vocabulary and is fun to compete with your friends. It can also run on iPad. http://itunes.apple.com/us/app/bright-words/id509197299?ls=1&mt=8
Improvement to traffic light at Bugis
LTA has taken urgent steps to improve the traffic light at Bugis, where two serious accidents occurred recently. Article.
A taxi driver told me that the problem was noticed by many taxi drivers earlier, but they did not know who to report to. We need to improve our system of getting feedback from the public and acting on the feedback promptly - rather than wait for a serious accident to occur before taking action.
In recent years, there is a tendency of many government agencies to avoid taking responsibility and to point fingers to other agencies. We have to find a solution to change this bad habit.
A taxi driver told me that the problem was noticed by many taxi drivers earlier, but they did not know who to report to. We need to improve our system of getting feedback from the public and acting on the feedback promptly - rather than wait for a serious accident to occur before taking action.
In recent years, there is a tendency of many government agencies to avoid taking responsibility and to point fingers to other agencies. We have to find a solution to change this bad habit.
Singapore needs to strive for growth
Prime Minister Lee Hsien Loong explains why the government needs to pursue its growth strategy. His speech is reported by CNA. Article. And another report from Today. Article.
I will be writing to give my views on several points contained in his speech including the following:
a) Most countries pursue growth policy
b) But they balance this policy with other priorities, to give a better life for the people
c) Singapore's policies are not well balanced - leading to a feeling of insecurity, stress and lower quality of life
d) This is reflected in our low birth rate - among the lowest in the world
e) The policy of increasing asset value is flawed, as it is fueled by an asset bubble that will have to be paid by our future generation!
I will be writing to give my views on several points contained in his speech including the following:
a) Most countries pursue growth policy
b) But they balance this policy with other priorities, to give a better life for the people
c) Singapore's policies are not well balanced - leading to a feeling of insecurity, stress and lower quality of life
d) This is reflected in our low birth rate - among the lowest in the world
e) The policy of increasing asset value is flawed, as it is fueled by an asset bubble that will have to be paid by our future generation!
Firms have to explain anti-corruption measures
WHILE the recent reports on the corruption case
involving the former Singapore Civil Defence Force chief
have named the companies whose employees were alleged to have given sexual favours
in exchange for getting business,
the attention has been on the wrongdoing by the individuals
('Former SCDF chief faces 10 charges'; Thursday).
The companies concerned need to explain...
including monitoring and enforcement.
.. also review
whether their promotion and reward systems are overly aggressive
in encouraging financial results at all costs.
Associate Professor Mak Yuen Teen
National University of Singapore Business School
http://www.straitstimes.com/STForum/Story/STIStory_808834.html
Millionaires who don't feel rich
Singapore,
the third richest country in the world on a per capita basis,
may be good at accumulating wealth
but it fares less well when it comes to distributing it.
http://thestar.com.my/news/story.asp?file=/2012/6/9/focus/11439831&sec=focus
Thursday, June 7, 2012
An affordable home
A family should spend not more than 4 years of the family income (based on two working persons), or 5 years of the income (based on a sole income earner). This article explains the calculation. http://tankinlian.com/FramePDF.aspx?ID=657
Wednesday, June 6, 2012
SCMP: Former chief of HK monetary authority reprimanded
6 Jun 2012
The former chief of the Hong Kong Monetary Authority (HKMA) Joseph Yam Chi-kong is likely to be reprimanded in an investigation report to be released by lawmakers today on the Lehman Brothers minibond scandal.
The report, to be tabled to the Legislative Council this morning after a probe into the saga that has lasted more than three years, is also expected to criticise major government figures including Financial Secretary John Tsang Chun-wah and Secretary for Financial Services Chan Ka-keung, as well as former Securities and Futures Commission chief executive Martin Wheatley.
But at least three lawmakers, including Jeffery Lam Kin-fung, Philip Wong Yu-hong and Abraham Shek Lai-him who are supporters of Yam, are said to have refused to sign the report and have vowed to table a minority report on the findings. All three did not return calls last night.
The lawmakers' minibond investigation was launched after Lehman Brothers collapsed in September 2008, leaving more than 43,000 Hong Kong investors facing losses after buying the product through local financial institutions.
Despite the name, minibonds are not corporate bonds, but risky derivatives linked to the credit of listed companies. Over 30,000 investors complained to the HKMA and Securities and Futures Commission, accusing the banks of not telling them about the risks.
A source familiar with the probe cited the report as saying that Yam had to bear the greatest responsibility. He mostly paid heed to maintaining the stability of the financial system and did not consider protecting small investors as one of his main tasks, a source said.
Many lawmakers disagreed with his paying so little heed to small investors.
The source said Wheatley was also blamed as the securities watchdog should have better regulated the financial institutions.
Tsang and Chan faced less severe criticism as the government was not the direct regulator.
Motor insurance premiums continue to increase
Why are motor insurance premiums so high in Singapore and increasing year after year? What can be done about it? http://tankinlian.com/FramePDF.aspx?ID=656
Shoebox units
I agree with Conrad Raj that the Government should not interfere in the market for small size apartments, also called shoebox units. Article. The purchasers are fully aware about what they are buying and they have their reason to buy small units, which in most cases is all they can afford, giving the high property prices in Singapore.
The Government should intervene in the right areas, for example, when consumers are being cheated or bullied by the big businesses.
The Government should intervene in the right areas, for example, when consumers are being cheated or bullied by the big businesses.
Tuesday, June 5, 2012
High cost of motor repairs
I understand that the average repair cost for a car damaged in a collision is $4,000 in Singapore.
An insurance company in Jakarta told me that their average repair cost is $300 and that an insurance company is able to repair a car at a lower cost than consumers, due to their volume of business.
In Singapore, the insurance company pays more than 2 times of the cost paid for consumers for the same repair. The average repair cost in Singapore is 10 times of the cost in Jakarta. There is something seriously wrong with the business model in Singapore, leading to high cost for motor insurance repairs and premiums.
This has been a problem that our authority and the insurance company had been unable, or reluctant, to address for several decades. It is another factor contributing to the high cost of living in Singapore.
An insurance company in Jakarta told me that their average repair cost is $300 and that an insurance company is able to repair a car at a lower cost than consumers, due to their volume of business.
In Singapore, the insurance company pays more than 2 times of the cost paid for consumers for the same repair. The average repair cost in Singapore is 10 times of the cost in Jakarta. There is something seriously wrong with the business model in Singapore, leading to high cost for motor insurance repairs and premiums.
This has been a problem that our authority and the insurance company had been unable, or reluctant, to address for several decades. It is another factor contributing to the high cost of living in Singapore.
Danger of speeding
The recent two traffic accidents in Bugis showed the danger of speeding, especially to beat the red light at a road junction. In both cases, the speeding vehicle did not have the right of way.
Even if they had the right of way, it is important that they should be able to stop in time, if the other vehicle had made a mistake in getting into their path. This is called defensive driving - i.e. to avoid an accident even if the other vehicle had infringed on our right of way.
I find that many vehicles are driven too fast on our roads and the driver may not be able to stop on time, if there is an unexpected obstruction or if the vehicle in front needed to change lanes. We need drivers to be patient and to drive more slowly to avoid road accidents.
Even if they had the right of way, it is important that they should be able to stop in time, if the other vehicle had made a mistake in getting into their path. This is called defensive driving - i.e. to avoid an accident even if the other vehicle had infringed on our right of way.
I find that many vehicles are driven too fast on our roads and the driver may not be able to stop on time, if there is an unexpected obstruction or if the vehicle in front needed to change lanes. We need drivers to be patient and to drive more slowly to avoid road accidents.
Learning about compound interest
Many consumers do not realize the importance of understanding compound interest. This may change their perception!
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Monday, June 4, 2012
Practice defensive driving
An edited version of tThis letter is published in the Straits Times Online on 4 June 2012.
27 May 2012
Editor, Forum Page
Straits Times
The One Motoring website stated that, unless otherwise indicated,
the speed limit on our roads is 50 km. This may not be widely known, as it is
quite common to see many vehicles be driven at a faster speed on our roads.
I suggest that more publicity should be given on the speed limit, especially as
many foreigners are now allowed driving on our Singapore roads.
Editor, Forum Page
Straits Times
The One Motoring website stated that, unless otherwise indicated,
the speed limit on our roads is 50 km. This may not be widely known, as it is
quite common to see many vehicles be driven at a faster speed on our roads.
I suggest that more publicity should be given on the speed limit, especially as
many foreigners are now allowed driving on our Singapore roads.
Recently, there were fatal and serious accidents involving fast and reckless
driving, especially in the early morning. I urge the authority to take action
against these drivers. With modern technology, it should be easy to identify
these cases and follow up with prosecution.
There should also be exhortation on the need for defensive driving. Even if
a vehicle has the right of way, a prudent driver should be ready to stop a vehicle
in time to prevent a collision.
Many drivers are impatient and in a rush. They are unwilling to give way to a
vehicle in front that signals an intent to change lane.
Singapore is a small place and our roads are getting more congested. There is
no need for cars to be driven at a fast speed.
There should also be exhortation on the need for defensive driving. Even if
a vehicle has the right of way, a prudent driver should be ready to stop a vehicle
in time to prevent a collision.
Many drivers are impatient and in a rush. They are unwilling to give way to a
vehicle in front that signals an intent to change lane.
Singapore is a small place and our roads are getting more congested. There is
no need for cars to be driven at a fast speed.
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