10/23/2009
What's left for Singaporeans?
Below is the first para of a Financial Times article posted in Singapore News Alternative about the surge of rich Russians coming to paradise.
Financial Times, 21 Oct 2009
Singapore is attracting a surge of Russian investment as rich business people seek a politically stable home for their personal wealth as well as exposure to Asia’s rapid recovery from the global financial crisis. Officials and bankers say significant sums have been deposited in the island state’s booming private banking sector, with Russian money also flowing into the stock market through investments in property and luxury services companies.
The issue is that other than investing in productive industries, a lot of money will be sunk in properties. If rich foreigners are flooding the market and buying up everything, eventually what will be left for the citizens? Yes, it is good money, like selling Alaska.
Before we sell everything, there is a need to calibrate how much can be sold and how much should be reserved for citizens. (Ok, bad economics). Otherwise, the whole of the city, Orchard Road and Bukit Timah will be owned by foreigners and the citizens being left out. Exceptions will be the Istana and Oxley Rise.
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8 comments:
If you inflate currencies, that will form bubbles.
there are now too much money chasing after limited properties. you can expect the outcome.
MM Lee says that Singapore needs the arrival of foreigners especially the rich ones. So, Singaporean should be thankful to these new arrivals for saving their bacon. MM Lee is always right. He cannot be wrong can he? Housing cost inflation cannot be blamed solely on the influx of foreigners. Singaporeans should shoulder some of the blame because a large portion of the population invest in rental properties and also indulge in property speculation. I know of many Singaporeans who have 4, 5 or even half a dozen property for rental income. Where there is property speculation, the cost of housing will be inflated. So Singaporeans. please ask yourselves, why are most of you so greedy???
Because we are taught that greed is good. Look at the ministers' salaries. You think they feel it is enough? When the economic crisis is over, be prepared for the mother of all increments.
Greed is good and there can never be enough. That is the Singaporean idea of security. Money means security and hoarding is a national hobby. The rich get richer the middle class stay put and the lower 20% just have to suffer as the cost of living in Singapore climbs ever higher. The cost of your hdb is priced by the govt and there is no way one can find out the profit margin for the hdb. Land cost determines to a large extend the final cost of the flats and the govt controls the price of land in Singapore.
If the foreign rich ones do not come to Singapore, our local rich ones will stand up like sore thumbs, especially the millionaire ministers. So, MM of course will tell us that Singapore needs the rich foreigners. Don't forget, the rich gets richer. How do they do it? At whose expense?
i think the rich gets richer because they are smarter.
to anons:
Greed is neither "good" nor "evil". I aam surprised in this age of spectacular and ever incresin science and technology that people still judge in terms of good and evil... ass if good and evil were "real" in this material-causal universe.
Human nature (conciousness) is such that one wants a FUTURE state to be "better than" the PRESENT state, and therefore people act in such ways.
Therefore it depends on the INCENTIVES people (think they) have to achieve their goals for the "least cost".
If you have an inflated money supply -- money becomes "cheap" relative to the almost fixed amount of real estate... i.e. money is more abundant than the increase in the amount of real estate. Therefore real estate when priced in terms of money will "cost" more.
MM Lee just says whatever he likes. It is up to you to determine if what or anyone else says is true or not, and if it applies to your life. If not, chances are you will automatically believe people of "notoriety" because in your mind they are "better" than you and therefore know what is better for you than your own self.
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