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6/10/2011

How to give cash to our senior citizens without paying for it - CCE

Think COE and how CCE can be applied to benefit the citizens and the govt. The govt has been selling COEs to the car owners at a price that is determined by supply and demand. At a time it was as high as $100k and currently around $50k+. It is a costly piece of paper just to buy and own a car for 10 years. The benefits of this scheme go mainly to the govt’s coffer.

A car is a very precious temporary asset. How could this be more valuable than a Citizenship Certificate Entitlement? Many are queuing to enter this prosperous city state where the roads are laid with gold. Many have come and return home rich. Many remain here and get richer. Many have paid a heavy price just to earn a right to be here to work, even as maids and manual workers, with the hope of a better life later.

A Singapore Citizenship is very valuable not just to earn a good living, but also a passport to the West, US and Europe. There is no need to give the citizenship to anyone on a silver platter. Foreigners should be willing to pay for it, to buy the right to make it rich, to a better life in a well developed city country.

How could this piece of paper be turned into an asset, like a COE, and with greater value? A simple way is for the govt to sell it in market like the COEs. But this will only benefit the govt alone. My suggestion is to issue a certificate to every senior citizen on reaching 60 years of age. This is like giving some cash to the citizens without the govt having to pay for it, a kind of retirement benefit. The certificate can then be sold to a foreigner who wants to be a citizen, and after meeting all the criteria of citizenship.

The state shall also benefit by a levy from the seller when a CCE is disposed. So the state is also getting something in return.

Why would a new citizen want to buy a CCE? Well, if the citizenship is attractive enough to him. And the value is retained as the CCE can still be resold when he decides to give up his citizenship, or when he kicks the bucket. There is thus no loss, but could be a long term investment like a stock, can appreciate in value. His below 21 years children will get one each when they reach 60. This means he could double or triple his investment and could stay fully invested here.

Yes, the CCE can also be listed in the Stock Exchange for trading if not converted to a citizenship. By doing so, its economic value will be so much higher. There are also many other benefits that can be derived from listing it as a stock. It also allows the govt to buy and sell the CCEs to control its supply and demand. It also prevents all the CCEs from being converted to new citizenships.

The govt thus does not need to throw away citizenships freely and the senior citizens will be pleased with the windfall. The Stock Exchange too will be pleased with another instrument for trading.

This is just a preliminary concept and many details can be worked out to make it workable. It is creating wealth from selling a piece of paper, for the senior citizens and paid by new citizens, like COEs. The oldies will have another source of cash for their twilight years. But the benefits of being a citizen, rights to reproduction etc must be tweaked. It will definitely help to increase reproduction as each CCE is worth quite sum money.

PS. I declare that I own the intellectual property right to this concept or other similar instruments that could be introduced in the future serving similar objectives.

4 comments:

Anonymous said...

Mr Chua you have an entrepreneurial mind. Good day.

Anonymous said...

Today the finance industry is all about printing money or printing papers to make money.

Anonymous said...

I kinda like the idea of creating wealth from thin air.

One the other hand, the whole world is now holding trillions of dollars of US treasury bills and bonds that are basically wealth created from thin air.

So, what is that piece of COE by comparison. Just continue printing and selling to grow the economy.

Whoever says working hard to create wealth must be stupid!

Anonymous said...

Yeah, but one thing is for sure, and that is, after selling off the CCE, the money will surely go back to the Government via the CPF. Oh yes, it is your money, but out of your hands.

Being a citizen here for ages, I can bet that this is the way the system is going to work after they flesh out the details.

A big fat chicken for them, bones and feathers for us. It never varies.