myth 93

'Raising GST is bad for the people' According to Hsien Loong, raising the GST by another 2% will help the lower income Singaporeans, make their lives better and close the income gap. So raising GST cannot be bad for the people. Singapore has found another great formula on how to improve the lives of its poorer citizens through higher taxes. I am so fascinated by it and can't wait for the secret formula to be revealed.

The devil to the rescue

The devil to the rescue Below are some extracts from the Daily Telegraph, UK. 'In his speech at the Guildhall last night, Tony Blair presented the outline of his plan for a new settlement in Iraq....Iran and Syria would be offered privileged status in resolving the future of Iraq, even though they have previously been regarded as serious obstacles to peace in the Middle East, and in the case of Iran, the most prolific sponsor of terrorism in the West.' Aren't Syria and Iran two of the three Axis of Evil? My god, I have heard of sleeping with the enemy. Now it is sleeping with the devil! Blair must have rubbed off something from Bush.

independent directors need to be independent

Independent Directors need to be independent The issue of Independent Directors and corporate governance is in the headline again. It will continue to be a problem if there is no political will to make sure that independent directors are really independent. The existence of independent directors is in conflict with their appointments to company boards. Why would companies want to appoint independent directors to watch over them? They would all go for compliant or friendly directors that will not rock the boat. What is badly needed is for an independent body to appoint independent directors to company boards, independent from the companies. I have proposed this and even volunteered my service to SIAS. My suggestion to David Gerald is to seek MAS or SGX authorisation for SIAS to be the independent body for this role. SIAS has all the reasons to ensure that independent directors are independent and will look after the interest of the companies and minority shareholders' interest. I am still available to take on this task if there is a real interest to pursue this concept. I have been waiting for almost two years on this matter. And things are getting uglier by the day.

singaporeans to celebrate increase in GST!

Lower Income Singaporeans can celebrate rise in GST! The main reason for this increase in GST is to help the lower income Singaporeans, to close the income gap, to make their lives better. For closing the income gap, this can be simply dismissed. It is hardly a drop in the ocean. Forget it. There are 330,000 Singaporeans earning less than $1500 a month, bearly making ends meet. I believe this is the group that will be helped most. There should be better off because of the GST. This is the first time that some Singaporeans, or the lower income Singaporeans can celebrate on a rise in GST. How can they benefit and be better off? Assuming they spend every cent they earned, all $1500, which is very likely, a 2% increase means they will need to pay $30 more per month on their consumption. All things being equal, the govt needs to reimburse them $30 just to break even. For them to benefit from the GST increase, the sum to be given to them must be more than $30, maybe $50. This is hardly going to make a difference to their lives as money is hardly enough. Most are living on a monthly deficit. A more decent sum should be $100 a month. This may help them a little to cover some of the debt or things they have been skimping on. At $100 pm for 330,000 Singaporeans, this will work out to be $1200 x 330,000 or $396 million annually for as long as the 2% GST is in force. For the GST can only go away if it is cut. If not, they will have to bear the burden of this increase for the rest of their lives, an increase to make their lives better. The problem is the lower middle income group, maybe another 500,000 Singaporeans in this category. Say they be given the same amount, that will come to $600 million. If the total collection is $1.5 billion, there will still be a surplus of $500 million to go around. Now, will the lower income and lower middle income benefit from this GST increase? This just sounds too good to be true. What is the catch?

straw that breaks a camel's back

If there were to be anything that can break the camel's back, it will be this 2% GST. And it comes at a time when many people are sceptical that their lives are turning better. I dunno who advised for this move, it is an advice that will lead to tremendous ground shift.

gst to the rescue

Just a few days back, Low Thia Khiang proposed for more assistance for the poorer Singaporeans. This was shot down by Vivian who challenged him that if going the Low Thia Khiang way the country would go bankrupt. Last night Hsien Loong said we must give more help to the poor Singaporeans or they would be left behind by globalisation. And Hsien Loong was not worried about bankrupting the country. Well, with all the GLCs and Temasek companies registering great profits, with our foreign reserves hitting new high, and with great returns from investing them, surely we have plenty of money. And the economy is having a great run. This is the best time to help the poor. And we can also change the definition of earnings to include capital gains. There you are, we will have a lot of money to help the poor. Still not enough, no problem, raise GST. We just need to be creative, if we need to spend more, create more. How can we ever bankrupt the country if we think a little and spend within our means? Without raising GST we may not have enough money to help the poor. And only the poor needs to be helped. We cannot raise GST to subsidise the rich, especially those earning half a million or more. No more pay rise for them. Oops, payrise is not subsidy. Must give them the pay rise they deserved or they will not work or will migrate. I think 10% will do.

dark cloud over parliament

I could see all the disturbed faces when Hsien Loong announced 2% increase in GST after the news programme. To announce the increase at this time just didn't sound right. When I look at the expression of every MP in Parliament today, all their expressions told a very different story. The only person who was optimistic and full of enthusiasm was Hsien Loong. For the rest, the glum on their faces was the best answer to what were in their minds. Even the newscaster Hwee Goh's expression was anything but convincing that everything was fine. A dark cloud seemed to have hovered over the whole Parliament. The forummers in cyberspace would have a lot of theories to shout about.

What is this hoohaa about welfarism?

Welfarism seems to be a taboo word. Everyone is so frighten of it as if it is leprosy. But are we talking about welfarism when we ask for the surplus of reserves or profits from investing the country's reserve to be returned to the people? The money belongs to the people. The capable people managing the reserves are managing the people's money, not someone else money. There must be a formula to return some of these profits back to the people. Or else where or whose pocket should the profit go to? More mega projects? Let's give back the money to the people who needs them instead of upgrading of parks and beautifying this and that. A couple of hundred bucks maybe worthless to the have's but mean a lot to the have nots. And returning profits from investments to the people is not welfarism. They get a share of the nation's wealth which they are part owner, and only from the profits. Not a permanent feature where the people can demand for it regardless of profit or loss. It will make more sense for the people to feel and share the wealth of the nation than just seeing the money grows and big fat bonuses being paid out to the managers while they get nothing.

Preparing for the inevitable

This is one of the title in the Today paper on Khaw Boon Wan's crusade to clean up the messy health care system. He talked about the problems of the ageing and dying and about the insurance scheme. He is again working very hard. But I am terribly worried when he said this in response to the query on the small payout of insurance schemes on hospitalisation fee. 'I hope of offer more diverse insurance plans...Many have told us that for a payout of $300 per month for 60 months, they would rather self insure. Clearly they prefer higher payouts and I presume they are willing to pay higher premiums.' Who are they? Who are these rich they? Please don't presume too much. Is preparing for the inevitable also means higher premium is a sure thing to come, and mandatory?

the complaining culture

Complaining is a Singaporean culture. It is in their blood. The people only know how to complain. From the internet, the man in the street, the elite and in Parliament, we all complain. And we don't even know that we are complaining, unless we prefix it with the words, 'feedback.'

the poor had it (part 2)

The poor had it (part 2) In the first part I wrote about having to pay more when a commuter did not have the exact change. There is another ruling which many have forgotten but I am not sure whether it has been amended. This is related to bus cheats. There are bus cheats and there are careless or absent minded commuters. Some will deliberately forget to flash their EZ link cards, some exit early to pay less and some simply forget. Let's not discuss the cheats as they will have to pay a heavy fine, even jailed, if they are caught for cheating a few cents on bus fares. The moral of the story is to cheat more, in the millions, and in style, if one wishes to cheat. Then one can still be respected as a talent. Poor commuters should not try to cheat. Ok my point is that if a commuter forgets to flash his card on leaving the bus, he will be charged the full fare from depot to depot, I think. I am not too sure about this. But definitely more than the actual fare if he has flashed exit. So if he boards a bus at the second last depot, flashes the card in but forget to flash out, he may have to pay the fare from one end to the other, the maximum fare. In short, the commuter has to pay more. But he has the option of writing in or explaining to the transport operator, at some office in some corner of the island which would probably cost him more than the over charge if he bothers. Many don't bother as it is not only tedious and troublesome, but more costly. So the poor commuters will have to pay more for a mistake, or forgetfulness, with no intent to cheat. What happens when there is a system error or card reading error? I am twiddling my thumb. Who pays for the error?

what's the problem?

[b]'At the end of the day, we may have superduper GDP growth but if much of that growth is creamed off by foreign-owned MNCs or just by a small group of large companies or only the already rich, then what is the point of all this GDP growth?' Manu Bhaskaran[/b] Is that a problem? If it is, blame it on globalisation. No super talent has the answer to such an impossible problem. If I am the rich and benefitting from it, why should I come out with a solution that will make me less rich?

haze ransom will travel

A ransom that will not work Indonesia said it needed US$60 million to solve the haze problem. And it is contributing US$50,000 to an Asean Haze Fund. Singapore also pledged the same amount. Immediately we can see the farce of the whole game. It only gets more hazy by the days. Now Singapore wanted the whole world to come in as it is as clear as the haze is hazy that any anti haze effort without the US$60 million ransom will not work. And US$60 million is only the beginning, the initial asking price. Hopefully some countries, for political reasons and goodwill, may want to throw in another few pennies to the cup. China, Japan and the USA may have to behave and give a token support for goodwill. And Malaysia may contribute more as blood is thicker than water. Maybe eventually they will get US$10 million for starting the fire and causing the haze and for some token effort to douse the fire that they started.

Talkingcock.com facing tough competition!

I took a peep at Talkingcock.com after someone told me that it is no longer that exciting. I too have not visited Talkingcock for a long time. Now with so many people talking cock in this paradise island, where got so much time to read so many cock and bull stories. But when I visited Talkingcock.com, yeah it is quiet. And the articles were dated. Could it be that the contributors are now back in this island and contributing to all the garbage here? I think that could be a reason. Anyway, Singaporeans never have it so good with so many people joining in to talk cock. When old cocks stop talking, young cocks will have their days. Old cocks like me better give way to young cocks. I am waiting for more young cocks to come here and crow. : )

How to learn to love another people...the American way.

There is a Chinese saying, 'without fighting cannot get acquainted.' In order to know and appreciate another person, you need to fight him. And it seems that this is exactly how the Americans get to know the world and to live at peace with them. Before the Second World War, America was quite happy living in its own continent. Then came the war. They fought the Germans and the Japs. Today, the Germans and the Japs were their best pals. Then they fought the Koreans and again the Koreans are their best pals. They even have a lot of Japs and Koreans in America now. Then they fought the Vietnamese, and as expected, the Vietnamese have become great American friends and living in America as Americans. Through all these fightings, the Americans learn a new people and their way of life, culture and even learn their language. Now America is fighting in Afghanistan and Iraq. In another 10 or 20 years down the road, America will be flooded with Afghans and Iraqis. Initially they will come as refugees after the war ends. Then the next phase will be political refugees. And then all will be Americans, living happily under the same night sky and stars. Actually the first group to receive such American hospitality are the African negroes. They are now as American as any White Americans. The group that really missed out on this hospitality is the Red Indians. Maybe too little left to be appreciated. With the impending withdrawal from Iraq, Americans better braced themselves up to receive an influx of Iraqis and Afghans into the Big Apple. And more mosques should be built quickly as surely they will come. Maybe have a few MacAlibaba fastfood Restaurants ready.

myth 92

'I am generous and all caring' I am going to set up a charity with a fund of $10 million to help the needy. These people really need help and if no one is going to help them they can all become jumpers. Now conditions to qualify for my generosity. 1. They must come forward and apply, giving all details of their family background, father, mother, grandfather, grandmother, brothers and sisters, husband and wives and children. And they must bring along all their bank statements showing how many bank accounts they have and how much each have in their accounts. 2. The family income must not exceed $800 or $300 per person. I have worked this out in detail how much one needs to live. 4 packets of instant noodles and 4 packets of 3 in 1 tea or coffee shall make a wonderful meal for a day. That will cost 60c + 10c multiply by 4 meals or $2.80 x 30 days. A sum of $84 a month. $300 a month is thus more than enough. 3. For married couple, must have only one child. With such a high cost of living it is better that they limit themselves to only one child. Otherwise there is really nothing my fund can do to help. 4. They must live on rental properties. 5. And there must be no colour tv or refrigerator or hi fi at home. and no handphone. These are luxury. Computer is definitely out of question. 6. Another condition is that they must be out of jobs for at least 6 months. 7. And they must not turn down any jobs offer to them. 8. Better still if they have IOUs or statements from the loansharks to prove that they are deeply in debt. 9. And when they come to apply, try to look poor and hungry. Fat or chubby applicants need not apply. I think that should be enough criteria to qualify for my charity fund. And if successful, each one will be given $100 a month. This will be given to them on a 3 monthly basis and every case will be reviewed after 3 months. I can't give them too much or my fund will dry up fast. And now it has been a year and my fund is still not utilised. There are some applicants but most of them cannot qualify. Never mind, one day someone will qualify. Anyone want to apply?

Dreaming like an elite

Sunday morning fantasy. Allow me to day dream a little, to feel good that I am an elite. Hmmm, a $50k salary, and maybe 10 directorships. Wow! Bee tang. Can’t imagine the amount of money going into my bank accounts monthly. Each directorship may average $5k a month. More if the organization is big. Well, probably I will lose track of who is paying into my accounts or how many accounts I have. I may even forget to attend board meetings. Or often the meetings clash on the same day and either I miss one or attend one for a while, then pop into another for a cup of tea.

Now that is life. And got bonuses and increments annually some more. Well, they need to keep feeding me out of respect for my position or my talent, or my connections.

Now would I be weighed down by problems? Of course problems are aplenty. So I will need to prioritise them. Only deal with the major problems. Often I will feel very irritated by little whinings and complaints. Can’t they bring it somewhere else for others to solve them? I only take care of big problems and big issues. Haven’t they told them that a captain handles only captain’s problem while every problem going to the major becomes a major problem?

Now better to do a quick check on my bank accounts and bank balances. Should have enough to place a booking for St Regis.

While I am busy looking for another important investment, those leeches better buck up and straighten up their lives. And stop thinking of handouts. It is for their own good. Too many handouts will develop in them a crutch mentality. And soon the company will be bankrupted. Now that will be a real big problem. It will definitely affect my next increment and bonuses.

Isn’t that a nice Sunday morning fantasy?

myth 91

‘$5000 household income is rich’

Is this really true? It should be. $5000 is a big sum of money. And a household income of $5000 must be middle class. Let’s look at the details. A family of 5, father, mother and three working children, father earns $1,600, mother $1,000, 3 children each earning $800.

After CPF and a $200 monthly transportation cost for each member, the disposable income left will be: father - $1080, mother - $600, each child - $440. Assuming each member needs $200 for his/her personal expenses eg taking lunch or dinner at workplace, the disposable income will be further reduced to: father $880, mother $400, and each child $240. For a family of 5, the household expenses will probably be $1500 plus $250 for utilities and conservancy fees, or a sum of $1750.

Now the combined balance available of the family, $880, $400 and 3 x $240 is $2000. This would mean that the family will have a balance of $250 to spare. Would this amount be adequate to pay for all the social obligations, more bills and a little eating out or entertainment? In reality, it is likely to be nothing left as there are many things that will eat up $250 a month easily.

Is a $5000 household income sufficient to qualify a family as being comfortable? No car or motor cycle definitely. Very likely the family will be living on a hand to mouth existence. That is how the cost of living in Singapore affects the apparently high income of Singaporeans and making the value of money so small.

A $5000 income is quite handsome if it is the income of 1 or 2 bread winners with a couple of young children. If the income is contributed by every working adult who needs to feed and cloth themselves, and also incurring expenses while working, a $5000 monthy family income is bearly enough to live on.

inspired by mah bow tan

After listening to Mah Bow Tan’s plan to build more rental flats for the less well off citizens, I am truly inspired. The govt is now actively tackling the problem of the poorer Singaporeans and to help them. More empty flats will be converted to 1 rm and 2 rm rental flats to solve the problems of housing for the poor. And the rentals will definitely be affordable, calculated with computer precision to fit the income of the poor Singaporeans. This is to prevent the more well off Singaporeans from taking advantage of the system and deprived the more needy Singaporeans of rental flats.

So what will happen is that the household income of the family will be carefully scrutinized not only on eligibility but also to determine how much each family will pay for the rental of the flat. A family with a higher income will have to pay more than a family with a lower income. This kind of micro management to ensure that the poor cannot abuse or cheat the system is one of its kind in the world. It is an obsession to make sure that the poor are managed to every detail of the little money they have. Put them under the microscope. And once they earn a little more, they should be made to pay a little more. This is absolutely fair and righteous. This is equitability at its best. Means testing was not mentioned, but means testing will have to be done to assess affordability.

This principle of paying according to income or affordability is the most ingenious part of the solution. It convinces me that means testing is important and relevant in the Singapore context. Though I have always been against means testing, I am now a convert for means testing. It is the fairest and most equitable way of distributing national resources and be paid according to one’s ability. I would like to see Mah Bow Tan proposing this formula in Parliament to apply to all govt services, including tuition fees in schools and tertiary education, ward charges for hospitalization, utilities, road taxes etc.

And for this scheme to be effective and implemented across the board, all Singaporeans must be means tested. Testing only the poorer Singaporeans is discrimination by wealth and is disgusting. Also, since all govt services and fees are to be paid according to affordability, it is necessary to means test the more affluent Singaporeans to ensure that they pay more for the same govt and public services. As an example, the price of a 5 rm flat should vary according to the family income of the buyer. Or hospital ward charges shall be computed according to the patient’s family income and applicable to A, B and C wards. School and university tuition fees shall be also payable according to the family’s income. The higher the family income, the higher should be the fees. It is the fairest and gracious formula for the better off citizens to cross subsidise for their poorer counterparts.

With such an equitable scheme where those who can afford more pay more and those who can afford less pay less, the govt will be seen as fair and progressive instead of being mean and petty if means testing is only applicable for the poor. I will definitely support such a great scheme.

Changing Strategy or changing horse?

Changing Strategy or changing horse? While the new PAP strategy is to woo the young, the post 65ers, which is expected given the young being the future, the latest speeches in parliament exhibited a fear of the old. There seems to be a feeling that the oldies have got the message that they are being abandoned and they might form a political party to look after themselves. The oldies were the nation builders, growing up in a poor underdeveloped island, slogged and toiled, and supported the PAP all these years, till today. They are the backbone of this nation and of PAP. Now where to put them? Outlive their usefulness?