Singapore's National Conversation

Singapore’s national conversation

 

 Prime Minister Lee Hsien Loong said

in Singapore’s new phase of development,

there was a need to renew itself continually,

and when necessary, reinvent itself boldly.

 

The authoritative former Prime Minister Lee Kuan Yew

had little use for public opinion when he was in power,

preferring to set his own agenda.

 

Now a year after he quit active politics,

his son, Prime Minister Lee Hsien Loong, has indicated

that he wants to move away from his non-consultative phase,

at least for the moment.

 

Singaporeans who are not used to being consulted by the government

have reacted with some cynicism.

 

Some, however, gave Hsien Loong high marks for effort.

“We are facing a crucial turning point of our country’s history.

 I think every citizen should try to play a serious part,”

was their consensus.

 

http://thestar.com.my/news/story.asp?file=/2012/9/1/focus/11949899&sec=focus

Facebook price continue to fall

The price of Facebook shares continue to fall. It was listed at $38 (USD) a share and has now dropped to $18. Read this.

I believe that a fair price is $10, giving it a high multiple of 25 times of earnings. There is still some way to go down, but it can happen quite fast. It seemed to be a one way street now.

I hope that people will learn from the lesson of Facebook and know that this will also apply to other assets with inflated values - such as property prices in Singapore.

Trading in the Financial Market

This article shows how you can learn the skill of trading in currencies and stocks. Trading is a zero-sum game and that retail traders will lose out in the long run. But if you trade with money that you can afford to lose, it can be fun.
http://tankinlian.com/FramePDF.aspx?ID=671

You do not have to spend $3,000 to attend a 3 day training course, which will not teach you anything. You can learn better with your own trading experience using a Demo Account and with good charts.

Gross Happiness Index

http://en.wikipedia.org/wiki/Gross_national_happiness

Quote:

The assessment of gross national happiness (GNH) was designed in an attempt to measures quality of life or social progress in more holistic and psychological terms than only the economic indicator of gross domestic product (GDP).

The term "gross national happiness" was coined in 1972 by Bhutan's fourth Dragon King, Jigme Singye Wangchuck, who has opened Bhutan to the age of modernization soon after the demise of his father, Jigme Dorji Wangchuk. He used this phrase to signal his commitment to building an economy that would serve Bhutan's unique culture based on Buddhist spiritual values. 

At first offered as a casual, offhand remark, the concept was taken seriously, as the Centre for Bhutan Studies, under the leadership of Karma Ura, developed a sophisticated survey instrument to measure the population's general level of well-being.

Two Canadians, Michael and Martha Pennock played a major role in developing the Bhutanese survey, which took a six to seven hour interview to complete. They developed a shorter international version of the survey which has been used in their home region of Victoria BC as well as in Brazil.  

Like many psychological and social indicators, GNH is somewhat easier to state than to define with mathematical precision. Nonetheless, it serves as a unifying vision for Bhutan's five-year planning process and all the derived planning documents that guide the economic and development plans of the country. 

At this level of generality, the concept of GNH is transcultural—a nation need not be Buddhist to value sustainable development, cultural integrity, ecosystem conservation, and good governance. Through collaboration with an international group of scholars and empirical researchers the Centre for Bhutan Studies further defined these four pillars with greater specificity into eight general contributors to happiness—physical, mental and spiritual health; time-balance; social and community vitality; cultural vitality; education; living standards; good governance; and ecological vitality. 

Although the GNH framework reflects its Buddhist origins, it is solidly based upon the empirical research literature of happiness, positive psychology and well-being.The Bhutanese grounding in Buddhist ideals suggests that beneficial development of human society takes place when material and spiritual development occur side by side to complement and reinforce each other. The four pillars of GNH are the promotion of sustainable development, preservation and promotion of cultural values, conservation of the natural environment, and establishment of good governance.

Watch this 3 min video

Read this PDF.

National Conversation - how to overcome scepticism

The Prime Minister has called for a National Conversation. There is promise that sacred cows can be sacrificed. However, many people are skeptical. They have seen a few similar exercises carried out over the past years - and the major policies continued to be unchanged, and things got worse!

The Prime Minister can win over the people just by adopting one major change, such as:

a) Reduce the price of new HDB flats
b) Abolish GST
c) Reduce National Service obligation

Suppose, the Prime Minister ask for a national debate on one or more of these issues and invite people who have proposed alternative views for this debate. And, if one of these sacred cows are really slaughtered, the Prime Minister would have gained a lot of credibility for this National Conversation.

I hope that he will consider my suggestion!

Court case against Profitable Plots

Even as the number of cheating charges at stake has fallen

for the three directors of Profitable Plots,

a tussle over papers has emerged.

 

The trio asked the High Court yesterday

for access to certain documents -

or their copies -

that the police had seized

from their land-banking and investment firm in a 2010 raid.

 

The public prosecutor had objected to the defence's previous request

by citing a lack of legal basis,

and this request was also rejected by a lower court -

the Criminal Case Disclosure Conference court -

earlier this month.

 

http://www.businesstimes.com.sg/premium/top-stories/directors-seek-seized-profitable-plots-papers-20120830

 

Priorities for Singapore

If there is one thing that the Government can do, what should it be?
Give your views in the survey publised in my Facebook, www.facebook.com/kinlian.

Debate on GST

My call is to the Finance Minister. If you wish to hear my views about GST or even to engage in a public debate on this matter, I will be willing to participate in it. I strongly believe that GST has been bad for Singapore and has been one major factor in escalating the cost of living and the cost of doing business. The harm to Singapore far outweighs the benefits. I am not asking for GST to be reduced, but to be abolished entirely.

I have written on this matter on several occasions in my blog. See here:
http://tankinlian.blogspot.sg/search?q=GST

If your Ministry officials wish to present facts to make me change my mind or to hear the statements from me, feel free to contact me.

Giving agents a better role

This letter is published on Straits Times Online Forum

http://www.straitstimes.com/

29 August 2012 

Editor, Forum Page

Straits Times

I share the concern expressed by the Alliance representing 15,000 agents 

about the potential job losses that may arise from a drastic change in the

remuneration structure for the sale of insurance policies.

In addressing the difficulty challenge of finding a right balance between the

interest of agents and consumers, I urge the FAIR panel to study the extent

to which consumers have been well served by the current practice of sales 

through commission.

The cost of selling life insurance is too high, and takes away a large portion of 

the modest yield that is earned on long term savings. Most life insurance 

policies give a yield of less than 3 percent, which hardly matches inflation. If the

policy is terminated before maturity, it is likely that the consumer may suffer

a financial loss. 

Quite often, consumers are sold life insurance policies that do not suit 

their long term financial needs. In recent years, I have received many requests from

consumers for advice on their insurance products and have 

become quite familiar with the mis-selling practices.

The regulators in the United Kingdom and Australia have decided that there is

no way to prevent the mis-selling, other than to ban the 

payment of commission on investment type products. This ban does not apply

to the payment of commission on pure insurance products that 

do not promise an investment return, such as health or term insurance.

Of the 15,000 agents that could be impacted by a major change, a large number 

are probably university graduates who have recently entered into this field. They could 

be more usefully deployed in other sectors of the economy.

The consumers could be better served by a smaller number of competent advisers who

give financial planning advice to address their long term needs, such 

as managing their budget, debts, long term savings and insurance protection 

in a more flexible and holistic manner. 

This type of advice should be given for a fee and should not be tied to commission 

payable on the inflexible and costly products that are being recommended 

to consumers.

If the FAIR panel decides to allow the continued payment of commission, they should 

set a cap on the rates of commission payable on various types of products at levels 

that are fair to consumers and agents. This is the practice adopted by most other countries.

Tan Kin Lian
President
Financial Services Consumer Association

Intentional harrassment

Alex Tan has been arrested for intentional harassment by using abusive language.
http://www.tremeritus.com/2012/08/29/founding-editor-of-the-real-singapore-arrested-for-intentional-haressment/

Some "sick" people make it a habit to be insulting and attacking me and to do it anonymously and continuously. I suggest that they make their insult in an e-mail, so that their identity can be proven.

Clarify uncertainties in health insurance

This letter has been published with some changes made by the Editor.

26 August 2012

Editor, Forum Page

Straits Times

I refer to the letters from Jerry Lam and Phillip Williams regarding 

their health insurance policies (Straits Times 24 August 2012).

More Singaporeans are relying on insurance to take care of the

escalating cost of health care, especially for the elderly.

I urge the Monetary Authority of 

Singapore and the insurance associations to clarify the uncertainties 

faced by consumers when they are faced with 

stiff renewal terms, changes to the existing coverage, and 

exclusions for pre-existing conditions.

Consumers need to be assured that their

rights and interests are protected, and that they do not have to incur

legal expenses to overcome unreasonable rejection of their claims.

It is also important for consumers to realize that insurance is not the only solution.

They should consider other risk management methods, such as loss control 

and retention of risk. 

This should not rely on insurance to pay for expensive and futile treatment 

that have an extremely low chance of success and does not improve 

the quality of life.

Tan Kin Lian

President
Financial Services Consumer Association

Fallacies of the GST

The Goods and Services Tax (GST) is a regressive tax. It takes a higher proportion of the income of the poor, compared to the rich. Most people felt that is is bad.

However, the proponents have put forward a few reasons why they felt that GST is good for Singapore. I like to state some of these reasons and point out why there are fallacious.

1. GST is a tax on spending. It is good to encourage people to save, instead of spend.

Fallacy: Most people, except the very rich, have to spend almost all of their wages to meet the daily necessities. They do not have any choice to avoid this spending. The tax hits them hard, by adding to their burden.

2.  GST is an efficient tax, as it has a low cost of collection.

Fallacy: It may be low cost to the tax collectors, but it adds a high cost to the business to account for the input and output tax. Nearly all transactions have to be accounted for. The tax has to be computed for almost every transaction, adding significantly to the compliance cost.

3.  By introducing GST, the government can reduce income tax and encourage rich people from around the world to migrate to Singapore.

Fallacy: The rich people do not have to pay income tax on their earnings outside of Singapore. We do not really know how much income tax that they contribute to Singapore, but I suspect that it is not that much. They did buy expensive property and in the process inflate the property prices and adding a burden to the local residents.

4. People can avoid income tax, but it is difficult to avoid GST.

Fallacy: Singapore has an efficient system of collecting tax and tax leakage is relatively small.  We do not need GST to solve a non-existent problem.

5.  The government needs to expands its tax base and collect sufficient tax to meet its obligations to the citizens.

Fallacy: The government already collects more than sufficient revenue from many other sources. It collects too much tax and have to make regular refunds. It is costly to collect the tax and make the refunds. Why not reduce or remove the tax in the first place?

Conclusion:

GST is unnecessary and harmful for Singapore. It has added to the cost of living and the cost of doing business. I hope to see, one day, that GST be abolished entirely.

Apple copyright case against Samsung

When I read the news that the jury awarded compensation of $1 billion to Samsung for the copyright case, I was shocked.

However, the following news report sounded quite optimistic
http://www.todayonline.com/Technology/EDC120825-0000066/Samsungs-defeat-could-actually-help-raise-its-brand

A few analysts had shared the same view. But I was not convinced. It seemed too optimistic.

My instinct turned out to be correct when the share price of Samsung dropped by 7.5% in Seoul on the first day of trading. It seemed that the shareholders are quite worried about the impact on Samsung.
http://www.todayonline.com/Business/EDC120828-0000029/Samsung-shares-plunge-on-fear-of-US-sales-ban

Yes. it is difficult to trade in shares and to interpret the news. It is also difficult to know which analyst to believe and not to believe.

Now, here is the million dollar question. Should you buy Samsung now, when it has dropped 7.5%? 

Issues involving paternity leave

The government has to be aware of the following issues regarding paternity leave.
http://singaporedesk.blogspot.sg/2012/08/another-half-baked-solution.html

A matter of political will

http://singaporemind.blogspot.sg/2012/08/all-ideas-are-there-it-is-question-of.html

Address the systematic issues

http://www.tremeritus.com/2012/08/27/prof-pm-lees-speech-failed-to-address-the-systemic-reasons-for-growing-unease-and-anger-among-sporeans/

Why I dislike GST

GST is not necessary and bad for Singapore. Here are my reasons, and also the views of other people, including some who disagree with me. 

http://tankinlian.blogspot.sg/2009/11/gst-is-unsuitable-for-singapore.html

Taxes will have to go up

There is nothing wrong when taxes have to go up to fund higher social spending, provided that the taxes are levied on people with high incomes and does not cause a burden on the lower and middle classes that are struggling.

http://www.todayonline.com/Singapore/EDC120827-0000038/As-social-spending-rises,-taxes-will-eventually-go-up

But I disagree with the approach to levy high taxes, especially through GST, and then have a big budget surplus that has to be returned to the people through GST vouchers. It is a wasteful exercise.

Trend of bad behavior

I agree with this concern expressed by Prime Minister Lee.
http://www.todayonline.com/Singapore/EDC120827-0000045/Dont-spread-trend-of-bad-behaviour

The stress of life in Singapore is causing this bad behavior. But, it does not give us the excuse to behave badly. 

Should you buy life insurance early to enjoy a lower premium rate?

Should you buy life insurance at a younger age to enjoy a lower premium rate?

This is the argument put forward by insurance agents to convince customers to put aside a large part of their savings towards a life insurance policy. This reasoning is flawed, as it fails to address the following key points:

a) Is the insurance necessary in the first place?
b) Is the consumer buying the right type of insurance?
c) Is the consumer paying the right price for the insurance cover?

In most cases, the answer to these questions is "no". The consumer is buying an insurance that is not needed, is buying the wrong type of insurance, and is paying a high cost for the cover.

What then, is the right type of insurance?

Life insurance is needed when a person has financial commitments, e.g. a family with dependent children, and needs to provide for their financial security in the event of premature death. A young person who is not yet married does not have this commitment. The priority is to accumulate and invest savings that may be needed in the future.

What about buying life insurance early to enjoy a lower premium rate? It depends on the type of insurance that is bought. For term insurance, which covers death from all causes, the premium rate is quite flat for people below age 55, which is the period that insurance is really needed. After that age, the consumer should have accumulated sufficient savings with a proper financial plan, and does not need to rely on insurance.

Life insurance should be used to protect against premature death, and should not be used as a form of savings and investments - unless it is able to provide a yield that is comparable to other types of investments. In most cases, the yield is terribly low!

At the younger ages, the biggest risk is premature death caused by accidents. The premium rate for an accident insurance is flat, regardless of age.

It does make sense to get a life insurance policy, especially a term insurance policy, at an early age as part of your financial plan. But, make sure you pay a premium of not more than 0.15% of the amount that is covered. For example, you should pay not more than $450 a year to insure for $300,000. If you opt for personal accident insurance, you should pay $180 to $360 depending on your occupation.

Do take your time to look for a suitable insurance cover. There is no great hurry.

Right approach towards insurance

Barclays Cycle Hire - used in London

Here are the details of the successful bicycle hire scheme used in London - also called the Boris Bikes.
http://en.wikipedia.org/wiki/Barclays_Cycle_Hire.

A member pays GBP 45 for 1 year of membership and can use the bike for 30 mins each time, without any charge. They have to pay a fee for using the bike longer than 30 mins.

Share Taxi

Dear Mr Tan

I recently read an interesting blog you wrote about using smartphone and GPS technology to help people share taxis and ease congestion. This concept is something that I totally agree with you on.

I'm pleased to inform you that I (along with three business partners) have recently launched such an app for the iOS platform to do exactly that. It is called GoMyWay (you can download it thru the iTunes app store for your iPhone or iPad). Also do check out:

1) www.facebook.com/gomywayapp
2) www.gomywayapp.com

We also have had some articles written about our app, as per below:

1) http://www.androidauthority.com/singapore-innovates-a-neat-green-app-for-transportation-110061/

2) http://sg.finance.yahoo.com/news/gomyway-iphone-app-plans-save-051034411.html

3) http://www.techwireasia.com/3850/taxi-sharing-app-gomyway-launches-in-singapore/

4) http://asia.cnet.com/gomyway-app-taxi-sharing-made-easy-62218392.htm

We believe the app would give people in Singapore a viable commuting alternative and increase the liveability of Singapore. However, this requires widespread adoption and we are working very hard in marketing this app at the moment. In this vein, it would be great if you could write about our app on your blog given you have such a wide and loyal following.

Ken Ng
CEO and Co-Founder

Reality of Forex Trading

Comment posted in this blog:

t is true that FX trading is best to left to professional traders from banks and hedge funds. it is almost impossible for retail trader to make money in long run. According to CEO of FXCM, one of the few largest US based retail FX broker, he said he will be surprised if there are more than 5%of the retail FX traders can make money in long run. 

For those ISO/SME Awards, it is for show only, so long a company afford to pay, it is not very difficult to get it and it doesn't guarantee the trading strategy is a successful. Did you ever heard Warren Buffet goes to apply ISO??? 

Don't easily believe the story from those school marketer, I don't care how fast the coach turns his personal accout from 1K to 1 million, how I know how many accounts he got margin call before getting a profitable one, and almost certainly , the super high returns is link to over-leveraging, just likes someone said a fundamental news suddenly came up in the middle of the night from US/Europe is good enough to act on.

Understanding a diplomat and a lady

When my friend was appointed Singapore's ambassador to another country, he told this story. "When you make a request and the diplomat said yes, he meant maybe. When he said maybe, he meant no ". He continued, "When you make a request to a lady and she said no, she meant maybe. When she said maybe, she meant yes. And when she said yes, she is not a lady."

Suspension for three years

Dr. Susan Lim was suspended by the Singapore Medical Council from practice for three years, as they found that she had over-charged her patients.

I find the decision to be harsh and counter-productive. She is a renown doctor and to stop her from practice for such a long period is a lose-lose outcome. She has useful skills that can be applied for the benefit of her patients.

Dr. Lim said that there are no fee guidelines and her fees have been agreed with the patient. If the patient was unhappy with the fee, she could have raised the matter during the time that she was being treated. It was not fair for this matter to be raised by the family after the patient had died.

While many people may find her fees to be excessive, Dr. Lim had her reasons as well and her points should also be considered.  A better outcome is for her to refund some of the fees to the family - which is what she had done.

Are you happy to be living in a rich country?

http://thestar.com.my/news/story.asp?file=/2012/8/25/focus/11910451&sec=focus

Quote
No Singaporeans are crazy enough to pray for poverty, but extreme wealth in the hands of a few is just as bad. Without that the economic gap here is already the world’s widest.

All these impressive fortunes are good for boasting, but believe me, I would rather wish for a more even distribution. The foreign billionaires can be here today, gone tomorrow.

Loss of income for retirees

This article explains about the loss of income for retirees
http://www.cnbc.com//id/48776785

A large cause of the loss of income is caused by the extremely low interest rate, and retirees depend on interest income earned on their past savings. The loss interest rate environment is not fair to retirees, and is a form of hidden tax. The interest rate is now below inflation rate, especially when retirees invest in "safe" government bonds.

Relying on the appreciation of houses is also dangerous, as seen from the US experience. This will also hit the inflated housing market in Singapore, in due course.

Even "safe" investments are not safe anymore. The municipal bonds in the USA may default. Some government bonds issued by European governments are now questionable.

The "best" investment is to invest in a diversified portfolio of blue chip shares. This is explained in my talks on investments conducted by FISCA (www.fisca.sg, Events). You can invest in an indexed fund, including ETF of index funds.

Anti-inflamatory drug

I have an inflammation in my foot. My doctor prescribed a NSAID. Here is an explanation of this drug from Wikipedia:

Non-steroidal anti-inflammatory drugs

Non-steroidal anti-inflammatory drugs (NSAIDs), alleviate pain by counteracting the cyclooxygenase (COX) enzyme. On its own, COX enzyme synthesizes prostaglandins, creating inflammation. In whole, the NSAIDs prevent the prostaglandins from ever being synthesized, reducing or eliminating the pain.

Some common examples of NSAIDs are: aspirin, ibuprofen, and naproxen. The newer specific COX-inhibitors - although, it is presumed, sharing a similar mode of action - are not classified together with the traditional NSAIDs.

On the other hand, there are analgesics that are commonly associated with anti-inflammatory drugs but that have no anti-inflammatory effects. An example is paracetamol, calledacetaminophen in the U.S. and sold under the brand name of Tylenol. As opposed to NSAIDs, which reduce pain and inflammation by inhibiting COX enzymes, paracetamol has recently been shown to block the reuptake of endocannabinoids, which only reduces pain, likely explaining why it has minimal effect on inflammation.

Long-term use of NSAIDs can cause gastric erosions, which can become stomach ulcers and in extreme cases can cause severe haemorrhage, resulting in death. The risk of death as a result of use of NSAIDs is 1 in 12,000 for adults aged 16–45. The risk increases almost twentyfold for those over 75. Other dangers of NSAIDs are exacerbating asthma and causing kidney damage. Apart from aspirin, prescription and over-the-counter NSAIDs also increase the risk of myocardial infarction and stroke.

Inconsiderate survey form

I stayed at the Pullman Hotel in London. The stay was quite pleasant. I received a survey from and tried to obliged them.

However, I found the survey form to be quite inconsiderate. It asked for too many questions. Half way, I gave up. I sent a reply to them by e-mail, but the reply was rejected automatically.

This is how many companies treat their customers and blew up an otherwise pleasant experience.

You can view the survey form here:
http://app.olakala.com/AnswerQuestionnaire.html?#answeringClientId=29436470&hashKey=42783529B99E23B66F9C3483EC731390

If the company is serious about getting a reliable response, they should keep to 5 questions and not 30 questions. 

Panoramic View of the city of London from the 15th floor of the Pullman Hotel in Euston Road. 

How to address the Clergy

Three mothers were talking about their grown up sons who have joined the religious order of the Catholic Church.

The first mother said, "My son is a Priest. When he walks into a room, the people addressed him as Your Reverend". The second said proudly, "My son is a Bishop. The people addressed him as Your Excellency". The third boasted, "My son is a Cardinal. He is addressed as Your Eminence"

Overhearing them, the fourth mother said, "My son did not graduate from a religious school. He worked as a lumberman. But he is 7 feet  tall and weighs 300 kg. When he enters into a room, the people grasped, "Oh, my God.

Rising home prices are not welcomed in New Zealand

I consider rising home prices to be bad for a country. It is a burden on the young people and benefits the people who have more than one property This is also the view held in New Zealand.
http://www.todayonline.com/World/EDC120823-0000084/High-NZ-home-prices-causing-anxiety

This is the law

For a long time, I have always considered that the law and justice goes hand in hand. We do not want laws that produce unjust outcome.

I have met some lawyers who proudly proclaim their knowledge of the law, even if the outcome is unjust. They say, "This is the law". It is practiced as it was written and interpreted by the courts. It seemed to imply that the concept of justice is irrelevant.

I read this article with some interest, as it also touch on the concept of law and its outcome:
http://singaporedesk.blogspot.co.uk/2012/08/define-legal.html

We will be a poorer society, if the law is written to benefit certain people, who have the means to pay expensive lawyer to defend their interest against the common sense of justice!

Impractical standards on online security

Some people make a big issue about online security and gets upset that their telephone number of email address is retrieved without their permission. Is this a big concern?

If anyone wants to know my telephone number or address, they can look up the telephone book. My mobile number and email address is already known to many unauthorized people anyway. 

When I get an unsolicited call on my mobil

e phone, usually from a telemarketer, I tell that person off - that he or she is intruding on my privacy. They must have noted my complaint and seldom call back again.

I get daily emails showing "... I got a business proposal for you". I just delete them.

I support a law that make it a crime for someone to hack into an online account (it is the same as stealing) but in other cases, I accept that this nuisance is a part of the daily life.

I do not want to be forced to change my password and PIN, just because of this small risk. Our regulator, such as MAS and IDA, should also mind their business and not impose unnecessary standards to protect online accounts.

Government procurement - independent panel

18 August 2012 

Editor, Voices

Today Paper

I refer to the reply from the Director (Corporate Communications) of the
Ministry of Finance on government procurement.

In referring to my suggestion on having an independent panel for large 

tenders, the Director said that "While agencies can engage such experts 

to help in the tender evaluation, it is important that accountability for 

purchases remains with the agency."

The Director had missed the intent of my suggestion, which was aimed

to ensure that this is independent consideration in the award of 

the large tender.

The procuring agency can still have its influence and accountability when they make the 

recommendation to the independent panel. It will be more difficult for the procuring 

agency to collude with its favored suppliers when there is an independent panel.

The role of the independent panel is similar to the role of the board of directors 

in taking major corporate decisions.

The Director had mentioned the existing of an audit process. The audit process can 

check for compliance with procedures, but may not be effective in checking that 

the tender have been awarded based on achieving the right price and quality and 

in preventing favoritism in the award.

Tan Kin Lian

Attend the educational talks

I continue to get requests from my readers to give my views on specific investments and insurance policies. My reply is the same - attend the educational talks organized by FISCA - www.fisca.sg (Events).

I am sure that these people have read my postings many times before, asking them to attend the talks. They do not want to spend the time and money but like to get "free advice". They should realize that it takes time to analyse these policies and is usually a waste of time, as these products are complicated and have hidden catches.

Public transport in London

I posted a few observations of the public tranport in London in my Facebook, www.facebook.com/kinlian.

Fingerprint of God

https://mail.google.com/mail/u/0/#inbox/1394c1af8f4dd556

Current trends

Read my views on investments and current social and economic trends in www.fisca.sg.

Drive slowly and carefully

We need to drive slowly and carefully on our roads.
http://singaporedesk.blogspot.co.uk/2012/08/bicycles-are-not-cars.html

London

I am now in London. I took the Heathrow Express from the airport to Paddington. Cost 19 GBP and only 15 mins. Another 10 GBP from Paddington to my hotel. If I took the taxi from airport to hotel, the cost would be 60 GBP. So, the train and taxi is half of the cost.

The taxi driver could not find the hotel, as the name changed recently. If he had Google maps, it would have been easier. They should use Google map.

I saw many cyclist on the roads in Central London. They appear to be quite safe. The traffic moves slowly.  

Inequality in education

Every time I read about the "fight" to get the best primary school for the children, I feel very sad. Why do we have to compete to this extent? Why can't we make the primary schools more equal? You can call it excellence but I call it inequality.http://www.todayonline.com/Voices/EDC120820-0000038/Pri-1-registration--Not-perfect,-but-fair

Things are not going right in China

The writer had praise for China in the earlier years, but found that things are not going right now. http://www.todayonline.com/CommentaryandAnalysis/Commentary/EDC120820-0000014/Youll-never-be-Chinese

Many of the comments apply to Singapore as well. Both countries appear to adopt the same approach towards economic development, and face similar social problems.

Here are some interesting quotes:

Modern day mainland Chinese society is focused on one object: Money and the acquisition thereof. The politically correct term in China is "economic benefit". 

 How will it lead? Unfortunately, it has forgotten. The government is so scared of the people it prefers not to lead them. 

The domestic Chinese lower education system does not educate. It is a test centre. The curriculum is designed to teach children how to pass them. 

Charge fair rates for roaming service

Not published by Strait Times.
16 August 2012 

Editor

Forum Page

Straits Times

My mobile operator charges $10 to $20 per megabyte for data consumed

on my mobile phone or tablet when roaming outside Singapore. They 

applied a cap of $15 per day.

I find these charges to be exorbitant and refused to use the roaming data

charges. I prefer to buy a local pre-paid SIM card and

pay charges at less less than $5 a day for unlimited usage. This is my way 

of telling the operator that they have to be fair to their customers, and should not 

charge an exorbitant rate.

I have also provided feedback to my mobile operator, but they refused 

to review the charges.

Recently, I found a mobile operator in Jakarta that offers a pre-paid service

that is valid for one year at a cost of $15.  The volume of data provided

is sufficient to serve my needs for one year. As I travel to Jakarta regularly, this 

is a big cost saving.

While the mobile operator in Singapore likes to fleece as much 

as they can from their customers, they should also realize that this business

strategy is not good for them over the long term, They should look for ways to

provide a service to their customer at a fair rate, and still make their fair margin

of profit.

Tan Kin Lian

Airport security

I understand the need for airport security, but I often wonder if the measures adopted are too mechanical and  impractical.

Often, the sensors are set at such a low level that it beeps when you pass through the detection gate. Even a  small coin will trigger the beep.

It is quite inconvenient and troublesome to remove the belt, pen, coins, wallet, mobile phone, watch and other items and still get "beeped". One might as well go through the body search, without removing these items.

I know of many airports where the security is more relaxed. They did not get any bombs blew up in the plane.

In risk management, one has to measure the cost and benefits of any risk measure. Is this a case where the cost now outweighs the benefits?

Protect online account - my approach

Not published

28 July 2012 

Editor, Voices

Today Paper

I refer to the report "Singaporeans putting their online accounts at risk" in Today 

paper.

It quoted a survey by an IT solutions company Assurity Trusted Solutions that many users do 

not adopt security measures, such as changing their passwords at regular intervals.

I wish to give my views, about IT security, so that the website administrators and regulators do not go
overboard in addressing this issue:

• Many online accounts, especially those used for social networking,
  do not contain critical information
• It is not practical to ask users to change their passwords at regular intervals, as they have to
  maintain several dozen online accounts 
• For transactions that have financial or legal impact, it is sufficient to use a second factor
  authentication, or to ask the user to enter a second password.

There is still the risk of unauthorized hacking into online accounts that do not have a high level of 

security. It is better to clarify that hacking is a criminal activity, similar to a burglar entering

into a private residence.  Many hackers may not be aware that they could be charged for this crime.

Selamat Hari Raya Aidil Fitri

Best wishes to Muslim friends.
From Penang.

I want to share this joke. The original version had people from different nationalities. To avoid misunderstanding, I am not using the nationalities.

Four prisoners had to be whipped for their crime. They are allowed a choice of oil or lotion to be applied to their back before being whipped.

John asked for coconut oil. He was whipped and collapsed. George asked for suntan lotion. He was whipped and also collapsed. Robert, being a strong person said, "nothing for me". He took his whipping and walked away, none the worse.

Last to be whipped was Tom. The prison officer asked, "What do you want for your back?" He thought for a while and said, "Can I have Robert on my back?"

Singapore ranking in survey of healthy nations

Singapore rank top in the survey of the world's most healthy countries
http://www.bloomberg.com/slideshow/2012-08-13/world-s-healthiest-countries.html

Congratulations to the Ministry of Health, Ministry of Environment, National Parks Board and other agencies. Well done!

Exorbitant roaming charges

I have written a letter to the newspaper about the high roaming charges for data usage on mobile phones and tablets when used outside Singapore. 

My telco charges $10 to $20 per megabyte. I am able to get data usage locally on prepaid card at $0.20 per megabye. So, the roaming charges are 100 times of the actual cost. 

I have written to my mobile operator a few times, but they refused to review th

e rates. So, I have to go through the inconvenience of buying a new SIM card each time, or topping up the local SIM card.

I am willing to pay $1 per megabyte (5 times of the actual cost0 but not 100 times! I hope that our businesses in Singapore behave in a reasonable manner and do not fleece their customers excessively.

Setting interest rate

For many years, the setting of interest rate, such as LIBOR and SIBOR, were left to the banks, working under the association.

Recently, there were scandals that there were dishonesty in fixing the rates in London, and that some banks were posting fictitious rates and benefiting from their acts by trading on these false rates. Apparently, there were similar abuses in other countries.

The Association of Banks in Singapore has recommended that the Monetary Authority of Singapore should be involved in the fixing of the rates.

I support this move, as there a neutral and responsible body should take the responsibility in overseeing this activity. While it may be challenging, the responsibility cannot be delegating to interested parties, such as the banks.

I hope that the recent scandals in several fields around the world underlines the need for regulators to play a more active role, instead of leaving matters to the market or to the participants with vested interest.

How to address the fertility issue?

Here are some suggestions from Lucky Tan
http://singaporemind.blogspot.com/2012/08/solving-low-fertility-problem.html

Suggestions to improve the procurement process

http://www.todayonline.com/Voices/EDC120815-0000032/Two-suggestions-to-improve-the-procurement-process

Negative aspect of social media

There is a tendency for social media to reflect the negative aspect, often times when it is untrue
http://www.cnbc.com//id/48665555

This is the negative aspect of human behavior and is an unhealthy trend.

Influence of the media

When Kim Jong Il, the former head of state of North Korea passed away, the people were in deep grief. They were genuinely devastated about the loss of their dear leader.

People from outside the country, who have read widely about the negative aspects  of this leader, were surprised why the people in North Korea adored him so much, and the adoration was genuine. They overlooked a reality - the people were influenced regularly and for decades by the state controlled media about the greatness of their leader. It may be subtle, but it was most powerful.

This is the influence of the media.

Are small businesses punishing Groupon?

The Groupon model seems to be hurting small businesses, according to this report.
http://www.cnbc.com//id/48663971

Groupon operates in Singapore and several other discount coupon schemes follow the same business model. They may face the same difficulty.

What are your views?

A more efficient procurement process

10 August 2012 

Editor, Forum Page

Straits Times

Recently, the National Parks Board awarded a tender for several foldable bicycles

costing $2,200 each. The tender was awarded to the sole bidder at a price

considered to be outrageously high.

The public asked why there was only one bid, when there should be many potential

suppliers that could meet the specification?

The short time allowed for submission for the bid and the intervening holidays

were suspected to be the key factors. 

Having participated in several bids in the GE Biz portal, I wish to 

point out that the portal is extremely difficult to use. 

I had a lot of trouble to register to be a supplier and continue to face difficulty 

in getting information on the tenders that are being invited, and worse, 

to submit a bid. 

It is quite expensive to pay an experienced staff to search the portal 

regularly for tenders and to prepare and submit the quotations. 

I can understand why small businesses are reluctant to participate in the GEBiz

portal and for those who managed to clear this hurdel, decide to give up after a while. 

It is just not worthwhile to spend a lot of work and money, and not get the business 

to cover the cost.

If the government agencies want to have a more transparent and efficient 

procurement process, they should take a look at the GEBiz portal and get 

feedback from users on how the portal can be made more user friendly to 

suppliers.

Tan Kin Lian
Director
Tan Kin Lian & Associates Pte Ltd

The old way of streaming

When I was in primary school in the 1950s, I remembered that the students who could not pass the examination had to stay back at the same level for one year. This probably applied to less than 10% of each cohort.

I find this to be a better way, compared to "streaming" that was adopted in the 1980s. When students are streamed to a non-Express class, they are stigmatized and it is quite glaring. This turned out to be a worse system.

Do you prefer the system used in the 1950s or the streaming system today?

Set the right standards for our education

In our drive for excellence in education, we may be doing something that is harmful for our future.

The pressure of competition in school, even in primary school, is pushing parents to engage tutors for their children. Tuition is costly and takes away the time of children to play and enjoy their childhood.

The root cause is not the competition itself, but the increasing standard that is going too far. I recall my secondary 1 maths teacher teaching the concept of ratios. The problem goes as follows, "If 3 man can repair a road in 8 days, how long will it take 6 men to repair the road?". The teacher explained, "Should it take more or less days?" If less days, then you should calculate 8 days X 3 man / 6 man = 4 days.  A few years ago, I saw a similar problem now taught in primary 4.

Do we really need to push our young children to such a high standard that they cannot cope? What is wrong with setting the syllabus at a more manageable pace for our children? What is the point of teaching them to solve problems by applying formulas that are mechanically drummed into them by tutors?

We have to re-think our approach towards educating our young. Do you agree that the standards are too high, and quite inappropriate?

One up to the girls!

I want to share another joke.

Hilary Clinton was the first lady when Bill Clinton was the President of the United States.  She is an intelligent and capable lady in her own right. She is now the Secretary of State under the Obama Administration.

Here is a story told shortly after Bill Clinton was elected as President. The couple drove their car into a gas station. Hilary said, "Bill, do you see the man at the gas pump? He was my boy friend in high school."

Bill Clinton said, "Wow, if you married him, you would be pumping gas today".

Hilary replied, "If I had married him, he would be the President of the United States".

One up to the girls!

Fearing President Brezhnev

Here is another joke.

An American visited Moscow during the days of the Cold War and met with a Russian friend in a restaurant. Russia was part of the Soviet Union and the leader was President Leonard Brezhnev, who was much feared by the citizens.

The American asked his Russian friend, "Tell me, what is your opinion of President Brezhnev?"

The Russian looked around him and found that there were too many people in the restaurant and it was not safe to speak. He beckoned to his friend and they both went outside.

Outside, the American was waited in anticipation of a candid answer. The Russian saw that there were people walking by on the street and was still frightened to talk.

They went up a bus which took them outside the town and dropped off near the forest.

The American said, "All right, there is not a single soul around now. Tell me, what is your opinion about President Brezhnev?"

The Russian said, "Actually, I admire him a lot".

If you do not catch this joke, wait a while for someone to explain it to you. It is a fact that many Singaporeans do not have a sense of humor.

Low fertility rate

Mr. Lee Kuan Yew laments the low fertility rate. In my view, he has to shoulder most of the responsibility for this bad outcome. It is not just the "stop at two policy", but the graduate mother's scheme, national service policy and many other government policies that were initiated by him. It is quite sad that after building up Singapore with his great leadership, he is now seeing the failure of this leadership ....

http://www.tremeritus.com/2012/08/12/lee-kuan-yew-blames-sporeans-for-low-fertility-rate-again/

Want to be a scholar?

Contrary to popular belief, it is better not to go to school. (Just a joke!)
http://tankinlian.com/FramePDF.aspx?ID=669

American and Russian Presidents

i want to share this joke, which I believed was used by President Ronald Reagan.

An American told a Russian, "In the USA, a citizen can go to the White House and tell the President .... President Reagan, I do not like the way you are running this country".

The Russian replied, "But in Russia, we can also say the same thing to President Brezhnev in the Kremlin. "

The American was surprised and asked for clarification. The Russian confirmed, "I can go to the Kremlin and tell President Breshnev ... Comrade President, I do not like the way that President Reagan is running his country!"

Ha, ha. This is for my readers who are not trolls and have a sense of humor.

Tips on insurance for consumers

Consumers write to me from time to time to ask about the insurance policy that they had bought. Usually, it was too late to do anything about the policy, which was unsuitable for their long term needs and gave a poor return on their savings.

To avoid this risk, consumers should learn about the different types of policies, BEFORE THEY GET COMMITTED! There is a talk on insurance organised by FISCA ,scheduled for 25 August. Do not miss it.

http://easyapps.sg/assn/Org/Staff1/Event.aspx