Myth 213 - Competition is fictional in monopolistic environment

While my dreary eyes are still half open on a Sunday morning, I have woken up to a new truth. Competition in a market with only two monopolistic players can be good and true to the spirit of bringing better quality of services and goods and lowering cost. This is exactly what is happening in the tussle between SingTel and Starhub. Despite the fact that SingTel is paying $400m or double of what Starhub was paying for the rights to screen EPL, it is charging its customers less. How could this be possible beats me. There must have many things up their sleeves, eg efficiency, more advertisers, more cost cutting measures, or maybe they are doing national service. Whatever, Singaporeans and football lovers have woken up to a pleasant surprise this morning. At least the $23 package to watch EPL will be around for one year. And all the other services provided by SingTel are competitively priced against Starhub, and cheaper. I will strongly recommend that we should have two organisations building public flats for Singaporeans. This will definitely bring the price of flats down. Long live free competition, in the uniquely Singapore way. All the other industries and service providers should follow the example of SingTel to provide better quality services/goods at lower fees. SingTel's CEO Allen Lew deserves an equivalent of the Nobel Prize in Economics if he can pull this through over three years without significantly increasing the subscription fees.

Low Thia Khiang is furious

Finally he spoke out after months of silence. He was literally left out in the cold in the current Lift Upgrading Programme. He was expected to put in his thumb print while Eric Low front up in announcing the LUP for Hougang. The grassroot adviser, not the elected MP, took on the leadership role to run the constituency. Oops, let me correct this. The grassroot adviser took on the role to announce the Lift Upgrading Programme. What other important roles he was involved, like deciding which precinct or flats that are deserving, how much etc, I am not sure. The MP, the representative elected by the people to look after their affairs and the estate has been sidelined. Here we have an MP, not part of the ruling govt, but a representative in Parliament, and an adviser, not part of the govt, but an appointee of a ruling party, both contesting to serve the residents. Who should do the job? Who has been chosen by the people to do the job? The answer seems simple enough. But is that so? HDB has given all its right and good reasons why the grassroot leader should do the job. Period. Whose money is involved in the LUP, people's money, govt money, or party money? Now, what has Chiam See Tong got to say on this? He is also affected, I think. Would he write another letter to the ST forum like Low Thia Khiang?

A curious letter in My Paper

Teoh Kueh Liang wrote to My Paper saying 'Govt should take the lead in hiring older workers'. Now where has Teo Kueh Liang been? The govt has been taking the lead in this area for many years. Just look at the cabinet? No, not the one in the kitchen. Or look at the Istana. Or look at the board of directors of all the govt linked companies and stats boards. Then do a count on the number of oldies in them, starting from the Chairman down. The govt has been the leading light in hiring oldies all these years. It is all there for the people to see. What would be nice is to have some top jobs like Chairman and Presidents to go on a rotation, a one year term for each incumbent. Then many Singaporeans could benefit from the experience to be in such positions and would appreciate the problems the country is facing better.

An amusingly frightening article

Last week I read an article by William Pesek in the ST explaining how China is at the brink of collapse or implosion. According to him, China is facing a mountain of problems that will pull it down. As a history student, I knew that China had collapsed 200 years ago, a broken country stricken with poverty, lack of industry, penniless, infested by warlords and foreign pests. Why is China facing imminent collapse today when it is the second most powerful country in the world, rid itself of all the foreign pests, warlordism, poverty and a reserve of US$2 trillion? China has muslim separatist problem that it could not handle, widespread corruption, an economy that is too export oriented and if America refuses to buy Chinese products, the factories will close shop. And there are in fighting among the Chinese leaders when Jiang ZeMin stood side by side with Hu JinTao at Tian An Men to view the parade. But the most serious problem China is facing is the reserve of US$2 trillion which it does not know what to do with. I thought I was reading an essay from a secondary school kid that is still in dreamland and highly intoxicated by the western media point of view. Is the Uigher separatist movement a problem to China? With a continent as huge as Europe and a 1.4b population, what is Uigher? China could simply designate a small corner of Xinjiang and called it the reservation to protect the Uighers and send all of them there, like the Red Indians in the US. Make sure they can get in but cannot get out. Any Uigher found outside the reservation should be arrested and send back to the reservation. Close the gates to the reservation, cordon it off with one of its armies and forget about them. See, problem solved. No American wants to buy cheap Chinese goods? The Chinese goods are now like drugs to the Americans. They need them desperately as no one could sell them as cheap and as good. The average American is broke and needs cheap stuff from China. The presence of Jiang together with Hu was to show how close the Chinese leadership is. From Deng to Jiang and to Hu, they are not building dynasties, they are not installing their princelings to perpetuate their rules. What rubbish about infighting? The western media can only hope that the Chinese leaders will fight among themselves by sowing seeds of discontent, conceiving imagination and presenting it as real. And about the US$2 trillion problem! I think every govt would wish to have this problem. They will crawl to Beijing to beg for the US$2 trillion problem to be theirs. It was a rubbish article that is most amusing and naive. But many readers will believe that China is in serious trouble after reading it.

Unappreciative and ungrateful Singaporeans

I read in some blogs and forums that Singaporeans are getting more angry with HDB inspite of the revelation that all the complaints about first time buyers not getting their flats were ridiculous. Mah Bow Tan has also quoted statistics, statistics, to prove the HDB case that the complaints were unjustified. And some were so angry to even call for voters to vote out the govt. So serious meh? Can't they see that Mah Bow Tan and the HDB were working their guts out to make sure that HDB flats are affordable and available to fit everyone's budget? There is an affordable flat somewhere for everyone. Just don't be choosy. Now which side of the story deserves more merits?

Ming Yi found guilty of fraud

Goh Kah Eng or Ming Yi and Raymond Yeung were both found guilty of fraud, falsifying documents and misappropriating funds. Ming Yi was a high profile monk, well known for his self sacrificing acts to raise funds for his charity works, to help the needies and poor. But some how inside Ming Yi there is a Goh Kah Eng that did not go away. And being the human part, Goh Kah Eng succumbed to the temptation of greed. Very sad that even a high profile monk could not overcome such temptation. Now I am growing to appreciate our system more for its incorruptibility. And the incorruptibles are deserving to be immortals and demigods, undefeated by temptation and greed.

Housing shortage problem solved!

50 to 60% of BTO applicants did not take up the flats offered to them. And the excuses they gave for not taking up the flats were more spurious than genuine. The conclusion, first timers applying for flats, most or almost all, will be successful. So there is no shortage of public housing problem. And I would suggest that there is no need to put up more BTOs in a hurry. What for, when there is no real urgency? Putting up more will only lead to a glut and over supply. Come to think of it, under the BTO scheme, if anyone applies for it and failed to get a flat, then something must be seriously wrong with the system. It is built on demand. And application is submitted 3 or more years in advance. How can any applicant failed to get his flat? The failings are first timers who needed a flat fast, not having to wait 3 or more years. This is the crux of the problem. In 3 years, many things can happen. The marriage may even be called off, or the couple may strike lottery or their income gone above the $8k ceiling, or they may inherit the flats from their parents or someone else. Anyway, the public outcry for shortages in public housing is a hoax, imagination, biased and unfair demand for attention.

Speaking through two holes

HDB has revealed that the take up rate at Punggol Breeze and Fernvale Residence were only 69% and 55% respectively. And according to HDB, the reasons were long waiting time, 3 to 4 years to build, choice units taken up, and maybe distance from MRT stations. But according to HDB, this is a sign 'that first time buyers still have plenty of choices despite the high demand for flats in some areas'. Wow, really ah! And it is good news that HDB will proceed to build these flats as they are confident of sustained demand for public housing. I can give a personal guarantee that all the flats will be taken up when completed. Just turn off the supply. It's elementary Watson! What other reasons for not taking up the BTO flats? I am still scratching my head. Damn difficult to find out the truth.

Putting a tighter leash on Ris Low

It is for her own good. Judge May Meseenas has imposed stricter supervision criteria after Ris Low's probation came up for review. She would now not be allowed to shop alone. And she must continue with her psychiatric treatment. I would presume that the reason for imposing stricter conditions must be due to the supervisee trangressing the limits during the probation period. Now what did Ris Low did to bring about tighter supervision on her freedom? Did she commit or attempt to commit theft again? Or is it because she participated in the Miss World contest? It looks like Ris Low is a danger to herself and to society. It would be better to put her on a leash or in a lockup.

Myth 212 - Free competition is good

Over the years we have been creating a few fictional warlords to compete with each other for monopolistic businesses and we claimed that they are good. Competition means better quality, efficiency and competitive pricing. Then some quietly merged again, probably realising that it was all a hoax. Now we have two out of three media/entertainment providers competing with each other to see who can pay more to acquire rights to entertain the consumers. And all must be doing it for the good of their consumers. The consumers can expect better quality programmes at lower or more competitive cost. Now, would the programmes be better now that Singtel had almost double the bid price to acquire the rights for EPL etc? Would the consumers be paying more or lesser after this great and free competition? Someone was shouting 'Singapore Premium ah!' behind my back. It is so easy to make money from Singapore. No problem actually when we have so much money to spend, OPM.

No lawsuit is the way to go

Two letters by Dr Chong Yeh Woei, President, 50th Council, Singapore Medical Association and Associate Professor Goh Lee Gan, President and Council, College of Family Physicians Singapore, were in the ST forum to defend the medical profession after Salma Khalik's article 'Tame doctor's greed and protect patients'. The medical profession must feel aggrieved by the statement that doctors are greedy and needed to be tamed. In some profession or businesses, such an allegation may bring about a series of charges and impending lawsuits to sue the party to bankruptcy. It is most pleasing to read the counter arguments by the two doctors to defend their profession and not to go for litigation. This is a sign that our society has progressed, matured and people are wise and reasonable enough to engage in fair discussion. Oh, I heard of the several suggestions in the recent Miss World contest that some of the contestants may be sued. I hope not and rationality and good sense will settle whatever issues that are in the heat. We don't need more litigations to settle disputes. Leave litigations to those with a lot of money to spend or to bully those who cannot pay the huge legal fees.

Responsible role of media

Dawn Tay, 'the media's role is to ensure accountability. Between pageant organisers and beauty queens, and the country they represent. Between newspapers and readers, to whom the press has responsibility to uncover the truth for.' The above is quoted from an article by Dawn Tay in My Paper today. She went on to justify 'the steady stream of reports by various media, which shed more light on the saga and eventually forced pageant organiser ERM World Marketing to break its silence last Monday.' With such a high standard set by our media, we must feel confident that any dubious activity or less than righteous happenings will be fully reported with the same zeal and conviction as the indiscretion of a 19 year old kid who cheated a few thousand dollars. We should soon be able to read more reports about cases involving millions. Actually no. Singaporeans don't cheat, except kids. Singaporeans should thank the media for their strong commitment to uncover and report the truth.

Salary cap for head honchos of State Owned Enterprises

China has initiated a cap on the salaries of the CEOs of their SOEs. At the moment the highest paid CEO from China National Offshore Oil Corporation, CNOOC, earns $2.5m. The next highest earns half of this amount. And the third is only paid less than $300k a year. Other perks not included. Given the scale of their operations and revenues, the salaries earned were peanuts. The head honchos should submit an appeal to compare their salaries with those CEOs of similar industries to get a fair salary. They are obviously very underpaid for the responsibilities they are shouldering. Or at least they can compare their salaries with our CEOs to give a picture of how lowly paid they are. They can quote Singapore as a role model of transparency and good corporate govt and we are paying should be fair and good. And they have been copying Singapore in many things and copying the way we pay our CEOs is only natural. And after the comparison, the CEO of CNOOC could easily be in the region of $10m or more. How could they justify to curb their CEO's salaries when they are so indecently underpaid? If they do that, they must be prepared for more corruption in high places.

A storm in paradise

Typhoon Ketsana is sweeping through the Philippines and threatening the lives of millions of Filipinos. 7.5 richter scale earthquake hit Padang and Bengkulu in Indonesia, burying villages and villagers and flattening towns and destroying lives and properties. No amount of international aids can minimise the pain and suffering of these affected people. In paradise, our media were flooded with news of a storm in the form of boomz and rats. Some had a good laugh but some were dead serious. On reflection, we are very blessed as a little country. We are spared from the ferocity and rages of nature. We are blessed with an able govt that is working so hard to make this a better paradise everyday. Are we lucky? We have our little irritations and irritants in our midst but more like the itches of mosquito bites. Nothing earth shattering or crisis like except for the little recklessness in the financial flirtation with making easy money and with no regards to responsibilities. From the big picture we are indeed very fortunate and a paradise. We have good govt and public administrators working their guts out for the people. But there are still some little people with small hearts that are making decisions that will affect adversely the lives of our people. The earlier we get rid of them the better. We cannot have small people with small hearts to make public policies and decisions for the people. In govt and public services, we need people with a different mindset, people with ideals and with a big heart to serve the people, to want the best for the people. A good example is the expectation in public housing and the way it is heading. There are little people who think that the losers in life should be happy if they have a roof over their heads, even a dog kennel will do. And it is ok to pay a life time, spending a big chunk of their income just to have a roof and 4 walls around them. Whatever, a flat is just that. You do not need to pay a lifetime for it. The govt needs to relook at the housing policy, how small it shall go and no further, and how much it shall cost and no more. And it is bad to have people waiting for 3 years just to get a roof over their head. The HDB was very successful in their early days to provide a roof to anyone who needs it. It only took a few months from application to moving in. This is a good and excellent policy for the people. But some jokers think that this was bad. People must made to wait. Waiting for 3 years is good, or normal. I want to use the four letter word here. A little oversupply of public housing is good. A 80 sq m 3 rm flat or a 90 sq m 4 rm flat must be the bottom that we should go in building homes for our average citizens. Going smaller is bad. The small 1 or 2 rm rental flats must be temporary shelters for those who have lost their ways or their luck ran out on them. Those must not be considered as the standard for a decent living for our people. We are using state land and public money and we must use them wisely and with a little generosity for the good of the people. To have good public policies favouring the people, we need good govt. And good govt must not be contaminated with little people with small hearts.

Stupidity or good business sense?

The football fans are fuming at the recent successful bid by Singtel to host the EPL. They have to switch programme provider and inconvenience and cost immediately become an issue. It was reported that Singtel paid a bomb of $400m for the rights, more than Starhub's $212m. The fear of having to pay more by the consumers is justified. Singtel is not going to do charity and will have to recover the cost from somewhere, sometime. But the fear may be unfounded. Singtel said that the aggressive bid was done with the 'intent to hold retail prices stable'. So the consumers need not fear. They should cut out this phrase from the newspaper and paste it over their TV screen and when the time comes to pay more, they can bring this up to Singtel. But of course by then the circumstances will have changed and all the additional costs could be justified by many other reasons. Having said that, consumers and the public should praise Singtel for its successful bid and for its well meaning intent to keep cost stable. OK, I confess that I am not sure what is the definition of the word 'stable'. Just like the word affordable, it can mean anything to anyone. All things will come to a happy ending, stupidity or clever business strategy, someone will have to pay for it.

As China celebrates its 60th National Day

The little slant eye pigtailed Chinaman, destined to work as a cook, a housekeeper or a laundryman, and by American laws(at one time) forbidden to do anything more worthy, has stood up. The 1.4b of little Chinamen have rebuilt their devastated country into an economic and military power second only to the USA. The years of suppression and humiliation failed to imprison these little Chinamen to a fate of doom and deprived of their basic human rights. And they did it all on their own, with very insignificant foreign talents to count on. They deserve to celebrate every bit of their new found wealth and confidence and status as equals among nations. No longer would they be trampled by little countries. No longer would another country try to colonise or cut their country up to be shared by the foreigners. It is good to see an Asian country standing up on their own feet. Next to do so will be India, another sleeping giant that is awakening.

One week of shame

And the bashing of Ris Low continues without anyone saying enough is enough to this shameful episode. No, the shame is not on Ris Low but the people who think that it is righteous and the right thing to do to castigate her in the media, publicly. Would any immortal or demigod want to put a stop to it? Where is the moral authority or duty to prevent this shameful episode to go on and on?

HDB releasing 7000 units of flats in next 3 months

What a big deal. Is it enough? The pent up demand and frustration of our young men and women waiting to buy a public housing flat is threatening to blow up. Many have been waiting for yers only to see their dream flat disappearing further and further into the distance. And they were told, patronisingly, that they should scale down their expectations and go for something they could afford. This means smaller and smaller flats, and further and further away from the city. What have caused these problems? High demand, including new citizens and PRs and a flawed policy of building flats when there is enough demand as if HDB is baking cakes, ready in 30 minutes. Hey dummy, 3 years to wait and many things can happen. One thing for sure, some would have found that during their search for a new flat, their income has gone pass the $8000 ceiling and they would be kicked out of the queue. Not eligible anymore. And if they have only worked for a few years, there will not be enough savings to plonk as deposit for even a small and cheap private condo. How is HDB going to appease this restless and angry group of young people whose incomes just exceeded the $8000 limit but without a fat savings account to pay for private flats? Would there be any changes in HDB’s ruling to accommodate this new sandwiched class of first time home buyers? Force them to buy from the resale market, and not eligible for subsidies, at market prices? Many young couples are getting a starting salary of more than $3k on graduation and will be hitting a combined income of $8k in two or three years. How realistic is the $8000 ceiling when applied to these young people? Or is HDB so rigid, a huge mammoth that cannot change or would not change simply because it is the authority, another weeny warlord, and when it says it is fair, it is fair, like market pricing? There is nothing wrong with comparing the prices of 20 years ago as long as the basis is reasonable and logical. Nobody is saying that when it was $7k for a 3rm flat, we should be selling it at that kind of prices. We should be comparing affordability by comparing income over price. And it is very wrong to use recent data to justify that the prices are affordable when the basis is wrong. Why is a 30% expenditure of income be reasonable and affordable over 30 years? Why not 30% over 10 years or 10% over 30 years? Who should be the best judge of what is affordable, the buyer or the seller?

How to measure a Heart

It may be time to measure the heart of Singaporeans, from the poor hardlanders to the immortals. We have read of jobless man being taken to court for arrears in S&C charges, the malicious attack of a 19 year old girl in the name of having fun, or exposing her conviction in court as a public interest story. So, what shall we measure, or how to measure a heart? The first step is to check if there is a heart(oo sim). If the answer is no(bor sim), don’t bother. If yes, answer the next 4 questions. 1. Is the heart (a) big or (b) small 2. Is the heart (a) red or (b) black 3. Is the heart (a) broad or (b) narrow 4. Is it a (a) lean or (b) greasy heart If the answers are all (a), good heart, if all (b), bad heart. But the answers can be a mixture of (a) and (b). The normal interpretation is that small heart is bad, black heart is bad, narrow hard is bad, greasy heart due to too much good oily food also bad, and vice versa. A point of clarification. The conclusion may not be medically correct. As a distraction, the Chinese have various descriptions of the heart. 'Hor Sim' or good heart, 'Pine Sim' or bad heart, 'Hong Sim' or windy heart, 'Ya Sim' or wild/ambitious heart, 'Tam Sim' or greedy heart. And there are many more to list.

ERM should send Ris Low to Miss World

The attacks continue. She cheated, she was convicted, she was dishonest. No second chance, no forgiveness even to a kid who committed an offence at 17. ERM should take this opportunity to send a message, that a wrong act should not destroy a person's life. A silly act or deliquency does not deserve a life sentence. ERM should put Ris Low there on the high pedestal and say, 'We are forgiving her and giving her a second chance!'. What is so wrong about that? Why so adamant to taint a child for life? Are we so unforgiving as a people? Jesus said, 'Let the one who has not sinned be the first to cast the stone.' And don't forget that she is suffering from a bipolar sickness. Now for the real objection. Murali Sharma wrote, 'Our representative must be fluent in an official Singapore language - in this case English.' What utter rubbish! Why just English? On one hand she said must be fluent in an official language and on the other hand it must be English. Can our representative speak in Tamil, Malay or Mandarin? English is never a condition for such a contest. Ris Low speaks good English according to the ERM. She stumbles at times because of her sickness. This weakness could be turned into an advantage, that we have a big heart to accept someone that is not so perfect. And I am wondering how many of the contestants at the Miss World contest are perfect or with no criminal records or ugly backgrounds. Let's send Ris Low to represent Singapore, to tell the world that we are all mere mortals, with our flaws and weaknesses. Or maybe we should send an immortal or a demigod to represent us.