The intricacies of Indian bureaucracy

The crisis of the falling value of the rupee of India is in the front page of many papers recently. At least 20% of the value has been wiped off for those holding to the rupee currency. The second most populous country and setting it sight to overtake China as the next economic giant of Asia is now struggling with a lost of confidence in the rupee.

While the crisis is just unfolding, below is an article by Venkatesh, a Chartered Accountant that revealed the workings of the Indian bureaucracy and how money has to be paid all the way to get a project on the way. It is quite startling even to Venkatesh and the full article is worth reading by those intending to invest in India. Bid sovereign wealth funds must really be in the know of the corporate culture of India to place their multi million or billion dollar bets in the Indian economy. Lacking such knowledge and bravely punting and putting money into India is only for the brave and the knaves.
I have deleted some of the details to shorten the article. For those who want more the link is available. Happy reading.

'Indian economy comes to a fullstop

By MR Venkatesh on July 22, 2013

(Excerpted from http://www.niticentral.com/2013/07/22/indian-economy-spirals-to-a-fullstop-107779.html)

A fairly large South-Indian group with varied business interests had invited me to a strategy session to turn it around. It was the first meeting and was to be preceded by breakfast. As we waited to be served, I perused their latest balance sheet.

Noticing that it was a profitable, tax and dividend paying company, where was the question of turnaround I wondered? Nevertheless, I instantly zeroed in on the balance sheet. I observed that the company had invested approximately Rs 700 (1 crore = 10 million) crore on its subsidiaries and lent another Rs 300 crore — in the aggregate Rs 1,000 crore. Flipping across the accounts, I asked a simple question – what is the return from this investment of Rs 1,000 crore? (Amounts changed for obvious reasons.)

The CFO was silent. The executive director hummed and hawed. The body language of the rest was a dead giveaway of their uneasiness to discuss this matter further.

The junior-most amongst them blurted out, perhaps unwittingly, that it was virtually nil. His answer got a cold stare from his superiors. “Nil!” I exclaimed to the horror of my hosts. “You must be paying approximately Rs 150 crore as interest annually on this sum.” I commented, probably rubbing salt into their wounds. I went on to probe further, “Why, what happened to this money?”….

Unable to bear my repeated questioning, the CFO finally broke down. “Sir, as you are aware we are in infrastructure. That requires tremendous pay-offs to politicians and bureaucrats. We have used approximately 150 subsidiaries, some of which are foreign ones, to route these payments.”
I was stunned. My jaw dropped. “Sir, we expected you to know all these practicalities of our business. The turnaround strategy needs to factor these ground realities.” ….

The economics of kickbacks and payoffs

Instantly my thoughts raced to the Nira Radia tapes. Fifteen per cent was the kickbacks payable to the Minister concerned for approving every road contract. Add another fifteen to the bureaucracy and local politicians. Add another five to seven to bankers, lawyers, consultants and agents to procure funds. What we have is a staggering 35-40 per cent additional cost to every infrastructure project….
There is another dimension to this issue. Somewhere down the line these “costs” were funded, mostly by our banks. Corporates altered their top-line as well as bottom-line to keep their banks in good humor….

The impact of gold plating

….The net result – twenty per cent of lending by Indian Banks is stressed. Obviously, when banks end up funding pay-offs and kickbacks, this is the end result. And that is a whopping Rs 11 lakh crores – approximately $200 billion – a sum that even the banks in USA cannot afford.

Added to this is the stress on account of our external accounts. The foreign debt has risen to $390 billion. This was a mere $225 billion in 2008. What is galling is that the foreign exchange reserve has remained at a constant $300 billion during this period. Needless to emphasise, the ratio of foreign exchange reserves to foreign debt has deteriorated from 138 per cent then to less than 75 per cent now.
What is adding to the consternation is that in the short term – by March 2014 – we need to pay approximately $172 (billion) of our foreign debts. This works out to approximately 44 per cent of the external debt and a staggering 60 per cent of the total foreign exchange reserves of the country.

Tharman – A little meat and a little departure

In today’s ST front page, Tharman listed 5 priorities of govt policies that in a way are related to Hsien Loong’s NDR speech on a comprehensive health care scheme for the senior Singaporeans. Tharman filled in some meat to that general policy change and direction, and also included a few cautions and departures from the sweeping Medishield Life scheme for all, sick or unsick.

Tharman’s first priority is about targeting govt subsidies to those who need them and said that universal benefits are ‘wasteful and inequitable’. A comprehensive all encompassing healthcare benefit scheme will fit into this wasteful and inequitable definition perfectly. There is no need for further elaboration on this as the impact and consequences are simply obvious.

The second priority, to design redistribution policies to spur self reliance and individual responsibility has been the cornerstone of many govt policies. To lump every Singaporean into a healthcare scheme with no recognition of their needs and demands on the system is going to be in conflict with the concept of self reliance and individual responsibility. The reckless and irresponsible are going to pass the buck to the rest of the people to foot their bills, as simple as that. Would this be acceptable under the new scheme?

Tharman did qualify by saying that those who are in genuine need for assistance would not be left on their own. This is the big difference between humans and animals. In the animal kingdom it is survival of the fittest and the weak and sick will perish on their own steam. As a social animal, the human specie has this innate ability to want and can look after their weaker fellow beans, the old, the sick, the less able and less talented. Human beans can be caring, generous and selfless.

The third policy pointed out by Tharman is more startlingly in a way as it has been violated in many instances for vain glory and misplaced responsibility. This policy is about making ‘sure tax incentives and grants “aggressively” support and catalyse community and civic efforts, and strengthen “the values that drives us to be our brother’s keepers”’. How would spending money on foreign sports talents and paying for foreigners to study here fit into this brothers’ keepers idea? How would bringing in foreigners to replace our citizens in jobs be a good thing? We need to take care of our very own, incentivise and motivate our own to excel in all fields. The foreigners are not our responsibility and money spent on them is simply wasteful and also inequitable.

How would this policy fit into the comprehensive health care scheme with PRs and new citizens in our midst and standing to benefit wholly from public funds?

Tharman’s fourth policy is about progressive taxation, benefits and social spending. I think he must believe that GST is progressive taxation. Or would he now be more enlightened to tweak this regressive tax to tax the poor less? In this regard he hinted at the need for future tax increases to fund the growing health care needs. Here is his biggest contradiction. If the recently floated comprehensive health care scheme does take cognizance to the priorities mentioned, there should not be a need to raise taxes. Raising taxes is only necessary when the scheme is an unlimited buffet spread for all to partake with little regard to equitable distributions and prudence not to over provide with no regard to the cost involved.

Tharman’s final point is about a just and fair society, about opportunities to enjoy quality living, public spaces and our work and living environment. Would the govt be building more and smaller flats to improve the quality of living for Singaporeans, or would the dreams of the 70s and 80s when every family aspire to own a 5 rm flat or better, including private properties be reignited? Can Singaporeans relive this dream?

With the freeing of the two pieces of land in Paya Lebar and Tanjong Pagar, the govt is given a chance to really redevelop and design quality housing for the people and not more mickey mouse pigeon holes in close proximity. A new concept of living with bigger homes and space could be the future, if only the wet dream of 6.9m does not become a reality. We have more space and create even more space for everyone here, and not creating more space to squeeze in more migrants to fill up every inch of space created. Can there also be a departure from the mindset of more population for more economic growth and the deception that small and little space are good quality living, good for bringing up children?

Yes, we have the money to build our dreams. And our dreams must be better and bigger space and more amenities for the people, not more squeeze and lesser space to live like mice and competing for space and air. There is no need to drive down a road to hell when we can go to paradise. But as they say, the road to heaven is wide open but few takers, but the road to hell is narrow and dangerous and crowded like hell.

How would these five policies mentioned by Tharman be worked around the Medishield Life for all?

Overloading is dangerous and illegal

Our private cars have a legal limit on the number of passengers it can seat. Going above the approved number is illegal. The school buses or private buses, tour coaches, pickups and commercial vehicles too have a legal limit as well. And there is a very good reason for it other than graciousness. It is safety.
 
Often there were reports of ferries or boats sinking because of overloading. Our lorries and trucks also have loading limits and speed limits for safety reasons as well. Funny thing, why are public transport buses and MRT trains not having limits on the number of people they can carry on each bus or train carriage? Why are they allowed to squeeze as many passengers as they like into the cabins? And they have been suggestions to hire pushers to push more people into trains like it is the right thing to do.
 
Would overloading of public buses and trains affect the safety of the passengers? No? Not sure? What do you think?

Managing the people’s life savings

HDB prices are affordable based how the ability of the buyers to pay. Now the affordability is a couple’s monthly CPF contributions for the next 25 years. This means that whatever that goes into the CPF will go out the other way, to pay for the affordable HDB flat. The couple would likely to start to save a little 5 or 10 years after buying a flat when their incomes rise. How much savings could that be to go into their retirement account?
 
Then there is the Medisave Accounts to fill up and at current rate, more than $100k will have to be set aside as untouchable in the Medisave Minimum Sum Account. Technically there could be nothing left to be set aside for the Retirement account at least after the flat is fully paid in 25 years time.
By the age of 55 or 65 the CPF Life Scheme will kick in and whatever money left in the CPF would be compulsory acquired to pay for their retirement annuities. Luckily the Medisave Account is still untouched by any compulsory scheme, but not for long. The money in the Medisave Account will be compulsorily acquired too to pay for Medishield Life once the scheme is finalized.
The net effect of the two compulsory schemes means that the Govt has decided for you how your money must be spent. In the CPF Life which is an annuity scheme, there is still hope of getting something back if one lives long enough.
 
In the case of Medishield Life, it is paying and nothing is coming back except when one needs hospitalization or is seriously ill and provided the illness is covered by the scheme. Read the fine prints and the exclusion clauses carefully.
 
The Govt effectively has a hold on the CPF savings of its citizens through a monopoly public housing scheme that will feed on the savings of its citizens for the first 25 years and a CPF Life for the next 30 plus years. As for the Medishield Life, this is still work in progress and the payment into this scheme could come very early, maybe from the day one starts working and contributing to the CPF.
 
The best part, the Govt can decide as and when how much to raise the premiums and compel the people to pay. There is no opting out. Resistance is futile. You earn and save and the Govt will be the recipients in a way, helping you to spend your savings.
Your money is not your money anymore. The Govt knows how much you have and can afford to pay and the three items will effectively absorb practically every cent there is available or affordable with hardly anything left. This is a very efficient system to manage the people’s income/savings by the Govt, with compulsion, and the people are literally left with no choice of their own.
 
The Govt is caring for the people, to their last day and managing their last cent without having to ask the people for their consent. Our CPF savings are now absolutely safe with the Govt.

And one good thing, there would not be any more scheme to manage your CPF savings after this.There is nothing left to be managed anymore.

Economic suicide biggest threat to China

Economic suicide biggest threat to China

Global Times | 2013-8-14 19:28:01 By John Ross

Share on twitter Share on facebook Share on sinaweibo Share on linkedin More Sharing Services 0  E-mail   Print

Illustration: Liu Rui/GT

China cannot be murdered, therefore it must be persuaded to commit suicide. This summarizes the geopolitical situation as seen by Western anti-China circles.

It encapsulates that China's national revival has now reached a point where no external forces are strong enough to prevent China's rise. The US remains militarily stronger, but China's strength is sufficient that US losses in a war would be so great even neoconservatives do not advocate it.

US authorities can try to murder Iraq, Afghanistan, Vietnam, and possibly in the future Latin American countries, but China is too strong.

This does not mean Western anti-China circles have given up. If it is impossible to murder China, perhaps it may be possible to persuade it to commit suicide? This idea might appear ludicrous, but actually the US has already succeeded twice, with Japan and the USSR.

From the 1970s, confronted with dramatic Japanese economic growth, the US persuaded Japan to overvalue the yen, cut investment to slow growth, and implement ultra-low interest rates after the Wall Street crash in 1987, allowing Japan's capital to flow to the US and safeguarding the latter's financial system, while Japan itself suffered the "bubble economy" which exploded in 1990.

In the 1990s, the West persuaded the USSR not to follow China's successful economic reform, but to undertake "shock therapy" - total privatization of state companies.

The result was the greatest peacetime economic collapse seen in a major country in modern history. Russia's GDP fell by 40 percent, male life expectancy dropped by seven years, and Baltic and Central Asian independence movements destroyed the USSR, reducing Russia from leading a state of 288 million people to one with a 143 million population. Vladimir Putin accurately described this as "the greatest geopolitical disaster of the last century."

China is harder to persuade to commit suicide. Unlike Japan, it cannot be blackmailed via military dependence on the US. Unlike the USSR, China is not pursuing an economically adventurist policy of seeking military parity with the US on the basis of a GDP only 40 percent as large.

But the West understands its leverage points. Ordinary Chinese citizens are economically tied to their motherland, but the rich can take wealth abroad.

The fate of State-owned enterprises and many productive private companies is tied to China's economic revival, but some financial groups can get rich even amid chaos, while certain professionals can be offered jobs such as well-paid professorships at US universities.

Therefore, a comprador bourgeoisie exists with support among those Chinese professionals whose highest ambition would be a US green card. If China cannot be murdered, these may be used to persuade China to commit suicide by adopting policies damaging itself.

After experience with Japan and the USSR, the US government knows accurately which policies those are.

Investment is the most important factor in economic growth, so China's economy should be slowed by reducing investment, as was Japan's.

An overvalued currency slows an economy, so constant pressure should be exerted for the yuan's exchange rate to rise excessively.

China's State-owned companies are its economic core and key to its ability to calibrate macroeconomic policy, so they should be weakened or destroyed, as with the USSR.

Moreover, to attempt to conceal that China's rise in living standards is the fastest ever seen in a major country, billions of propaganda dollars should be spent exaggerating out of proportion every real problem inevitably arising in China's rapid development.

It is therefore to radically misunderstand the situation to imagine the biggest threat to China is US aircraft carriers in the Pacific.

The biggest threat to China is forces within it trying to persuade it to commit suicide by adopting policies inevitably derailing its national revival.

Such processes can easily be followed from outside China. But while murder involves another person, suicide is a personal decision. The world's most important question is whether China can be persuaded to commit suicide or not.

The author is former director of London's Economic and Business Policy and currently a senior fellow with Chongyang Institute, Renmin University of China. opinion@globaltimes.com.cn

Children need solution

It is bad to tell children all their faults and mistakes without telling them why and what they should do not to repeat their mistakes and to better themselves. Children do not often have the intellect to think out solutions and answers. Pointing out their mistakes would not make them become better. They are children after all and are at the bottom of the learning curve. Children need guidance and hand holding.
 
Adults are slightly different. Adults, even those who have average intelligence, are able to work out their problems without much difficulty unless it is beyond them. Just tell them where they have gone wrong, their mistakes, and that would be good enough for them to work things out in most cases, unless they are really dull or recalcitrant, refusing to change for the good.
 
Then there are very intelligent adults. Actually such intellects should know what they are doing and should not be making mistakes or simple mistakes or obvious mistakes or silly mistakes. Super talents are not called super talents for nothing. But being human, it is forgiveable that sometimes they do make mistakes, intentionally or unintentionally, or because of greed or vested interests or due to group think or whatever.
 
Mistakes or bad decisions are made by super talents now and then. And very likely they know what they are doing, that they are doing wrongs. The people, the cynics, the concerned citizens, often spent long hours trying to tell the super talents that some things are not right, not necessarily wrong. I think, given the fact that they are super talents, a little prompting should be more than adequate for them to work out better solutions. Is there really a need for the daft, the average and the not too talented to offer solutions to the super talents? If this is the case then something is seriously wrong. It is like those who can see asking the blind how to cross the road.
 
And why should the daft offer free solutions to those who are paid millions to do their jobs?
 
Often we heard from the super talents and the pretenders demanding the average Sinkies to not just complain, but to come out with solutions. Is this a reasonable expectation? Is it not enough to point out the faults, the flaws and the mistakes for the super talented to move on? They are super talents you know? Are the super talents expecting to be spoon fed by the daft? It is crazy, right?
 
The super talents should be very grateful that the daft are kpkb everyday about their daft policies and decisions. The only reason why they are not coming up with better solutions and demanding solutions from the daft is likely that they knew that the better solutions will not be what they want or what they think is right. The daft should not be patronizing to think they know better than the super talents. And the super talents should not act daft to demand the daft to offer their daft solutions.
 
As for the many pretenders, please, there is no need to be the spokespersons of the super talents to parrot and demand the daft to offer solutions instead of criticism. The criticisms are good enough for the super talents to pick up from there and come up with better solutions if the intention is there. Think about it.

Excuse me, take your hands off

Excuse me, take your hands off my money! It is a bad habit to dip your hand into other people’s piggy banks or savings to help yourself. Even if you are the govt, you have no damn right to do so. Tio boh? Even if you go to Parliament and vote to use my money, it is still ‘illegal’ and immoral. The Constitution, without even looking into it, must have provisions to protect the people from any one thinking he can help himself with the people’s private property, including money. And the savings of the people in the CPF, in the Medisave, belong to the people, the individuals who put them there as their savings for their retirement. Is there anyone with the audacity to decide how the money should be spent for the rightful owners?

Who is arrogant enough to think he can do what he likes with the people’s money without asking for their consent? This bad habit is now second nature, it seems. The Govt is now so bold as to think that it can suka suka take liberties of the people’s savings as if it is the owner of the money. How outrageous can it be?

Any constitutional lawyer or human rights lawyer could care to explain why this is so? Or does the whole legal profession believes or agrees that the Govt has all the right to do so and that is why no one is willing to stand up to be counted, to say otherwise? If that is the case, then I will take my words back and can understand why the Govt is doing so.

The Govt must know that it has the legal right to take the people’s savings to buy life insurance, medical insurance and even to keep it for the good of the people for as long as it deems fit. It must have been rightly advised that it can do so by the best legal minds in this island. Short of something similar to the Land Acquisition Act, the Govt’s action to use the people’s CPF savings is kinda like a de facto Savings Acquisition Act.

So silly of me. I shouldn’t have wasted my time writing this. If the legal profession does not think it as a wrong, no one in this city thinks it is wrong, then it must be right. I rest my case.

Excuse me, please do whatever you like with my savings, and feel free to do so anytime you feel convenient and the need to do so. You have the right to decide what to do with my savings and how to spend my savings for my own good.

Thank you very much. We are so bless with such a caring Govt.

How to conquer the world

Till the Second World War, the world or countries were conquered by the use of military might. It was all about superiority in technology and military weapons. Countries that were relatively small could conquer countries many times their size in land and people. All the European powers were small countries relative to Africa, the two Americas and even countries like India and China. But they ruled the world and built empires that lasted for several hundred years.

After the WW2, the two remaining superpowers of USSR and the USA attempted to continue to rule the world with military might. This time they were not so successful. The East European bloc under the USSR broke up with the breaking up of the Soviet Union. The Americans fought several wars in Asia and the Middle East and were defeated or unable to subdue the invaded countries. The Soviet Union left in defeat in Afghanistan, the Americans held on with some residual forces in Japan and South Korea but were bitterly thrashed in Vietnam, a poor and much smaller country. The Americans are still trying to rule the Middle East and northern African but finding it increasingly difficult as long as the people are willing to die fighting the Americans.

Unable to make further headways, the American’s are shifting their military targets into Asia hoping to fight another war using their allies as proxies. This new development is still work in progress starting with the American pivot and is doing fine with Japan, India, Vietnam and the Philippines happily on board in this bandwagon of war. The story is unfolding rapidly with tension rising and flashed points increasing.

There is yet another war going on quietly, to conquer the world. In this new warfare, it is not about military might and using extreme force and power. It is a sublime infiltration of people, through migration and population. This is a new war conducted by the poor nations, the so called Third World to occupy and conquer the rich and powerful First World, without firing a shot, and with the unannounced acquiescence and compliance of the First World countries. The migrants are invited to populate the rich countries and to eventually swarm and take over the countries by sheer numbers.

The remarkable thing about this new conquest of the world by the poor Third World and apparently helpless and less able people is that it is inevitable. The First World countries are not reproducing themselves and are inviting the Third World people to replace them, willingly though grudgingly and with certain amount of contempt. They, the First World countries, believe that they needed the numbers from the Third World to fill up the gaps and for economic growth, and nothing else. They did not count on the consequences in the long run when they become the minority or the sheer numbers and integration of the migrants would make the takeover of their countries unnoticeable and seamless.

A good example is Singapore, a small island with a small population that can easily be replaced by foreigners. And because of its unique multicultural history of migrants, the new migrants would become citizens and leaving no traces of the origins. And it is only a matter of time when the majority of the island will be new migrants. And the best part, the govt sees this as good, as a new formula to sustain economic growth and the viability of the city state. In one generation, the Singaporean core, the original Singaporeans from the year of Independence will become a minority in the island and in two generations they would probably be lost in a sea of new citizens and be extinct like the dodo birds or like many of the native flora and fauna in the island.

The Third World people will conquer the world and rule the New World without having to fight a world war. They are welcomed to take over by the more intelligent and more industrious First World inhabitants. Europe and the USA will go along in a matter of time, without knowing it.

Bringing Medishield Life down to earth

The madness of this Medishield Life has gone into everyone without any firm ideas being crystallised. At most the Medishield Life Scheme is just a red hot balloon floated in the air, an idea that has been thrown out in a rally but with no meat or bones in it. It has however, got many people thinking, excited, some scared to death and many people in delusion. Some even feel that their old age health problems are solved and there is no need to worry anymore. And there are those who are going to profit from it handsomely and smilingly quietly to themselves for the good fortune.

It is time to bring this hot balloon down to earth to make it real. Gan Kim Yong has said that there is nothing firm about this sketchy scheme and many hours of hard work will ensue to turn this into a reality, a practical solution to meet the expectations of all interested parties. The initial exuberance that such a scheme would cover all the medical needs of the oldies need to be toned down and the high expectations need to be doused with a pail of cold water. The cost of covering everything and every need of the oldies will make it near impossible to cover from the insurance point of view unless cost is not an issue. The premium is going to cost a bomb. It cannot be small and affordable for sure.

For practical and cost reasons, such an insurance coverage must be carefully defined. To be feasible from the insurer’s point of view and a reasonable premium to be paid, the insured must know that there is a price for everything. The people may want to demand that the Govt takes ownership of such a scheme and practise some filial piety towards the senior citizens of the country.

I hesitate to want to offer any free solutions for various reasons, ie not having a full appreciation of the complexity of such an issue, not having the resources and time to think deeply into the issue, and not wanting to insult the millionaire talents to think on their behalf, nor to offer stupid solutions as a layman. But there is no harm to make a few general suggestions that are obvious to many and not be accused of trying to be clever.

I would like to suggest that the Govt provide a first level of protection to all senior citizens either from 65 or 70 years onward comprising C class ward stay in govt hospitals and general geriatric care. Basically this scheme will pay for ward charges and basic medical care that are not prohibitive in cost. The scheme shall not cover any major and costly operations. The object of such a scheme is to provide some peace of mind to the poor oldies that they would be reasonably well taken care of in a hospital if admitted. The scheme shall not cover for expensive operations and treatments. This could be defined by the professionals. This scheme shall be provided free to the senior citizens and the scheme can be compulsory without frightening the people with unlimited premiums to pay.

A comprehensive coverage for all senior citizens cannot be extravagant and unlimited in nature.

On top of this basic coverage, the people could then be given a few enhanced medishield schemes that they are willing to pay for. These have to be voluntary and allowing the people to chose one within their means and expectation. Here the rich and those with the ability to pay can ask for the sky and demand for the best. This is like feasting in a restaurant, the economy class or high end restaurants with different price tags to suit the different aspirations and expectations. The Govt can offer the basic healthcare needs while the luxury part should be individualised and pay through the individual’s own pocket. The poor must not be made to pay for the rich and their high expectations. This is elementary.

Having two such schemes operating in parallel would not bust the Govt’s coffer or deplete the savings of the people in the Medisave. A comprehensive no limit coverage is definitely impractical and insane from the cost point of view. It will bankrupt every insured and also the insurers. To make such a scheme compulsory is unthinkable unless the Govt is footing the bill. To pass the bill to the insured is irresponsible.

Are we in the same boat?

My boat is a luxury cruise liner that can sail the high seas. And all the cabins are fitted up like a 5 star hotel room. And buffet is served round the clock for free. And if I am sick of the buffet spread, I can swagger into one of the fine dining restaurants to have the best of eastern or western cuisines. And if I am bored there are many entertainment outlets to amuse me to keep me happy or laughing the day and night away. And there will be plenty of waiters and waitresses running around to serve me with the snap of a finger. That is the boat I am travelling. Money is never an issue and in my boat, actually a huge ship, I can afford to pay for everything without a care. I just sign and sign away whatever that I want or amuses me.
 
Are you in the same boat? How many of you think you are in the same boat? How many of you are in a rickety sampan or a refurbished tongkang fitted with a 60 horsepower engine? How many of you are lucky enough to be in a small yacht or a two bedroom pleasure craft? How many of your boats can travel the high seas and visit all the best resorts in the world and be feasted every meal, without a worry or a care of where the next dollar is coming from?
 
Are we in the same boat? I will like to believe that we are in the same boat. Or even to dream, imagine or hallucinate, that we are in the same boat, living and enjoying life.

Health care – Please don’t help us

It has never failed. When the Govt said it is going to help you, be frighten, be very frighten. The Govt is going to help the people with a life time health care scheme. That is the good news. The bad news, you are going to pay for it dearly. It cannot be for free right? And there is no escape this time. It is going to be compulsory! Imagine the frustration over the years when Medishield cannot be made compulsory? Now with this ‘the Govt will help you Medishield Life’ it is now compulsory. And the premiums to pay for health care for life, I can’t imagine how much it is going to cost. The minister has said that it will be ‘affordable’, another very frightening word. We all know what affordable means to the average Sinkies and what affordable means to the rich and powerful. And the assurance that those who cannot afford to pay will be subsidized is not too much of an assurance either. How poor would one has to be before one is qualified for subsidies?
 
What are the statistics for Singaporeans to live to 70, 80, 90 and above 100? What kind of sicknesses were they hit and how big were the bills? At the moment the number for the oldies seeking major ops or expensive ageing related sicknesses could be relatively low. Many would rather die than to live on and on like the undead or vampires. The statistics would not be a true reflection of the reality as many could not afford to see the expensive treatments in the hospitals. But once there is such a medical coverage for life, many oldies will be demanding to want to be treated with no consideration to the prohibitive cost. It is free in a way with insurance coverage. Why not? How would this snow ball into an insatiable demand for more medical services?
 
When is the Govt going to accept that when one gets old, one must die? When is the Govt going to accept that many oldies cannot afford to grow old or did not want to grow old and live a life like walking corpses? There must be a clear definition of the kind of coverage under Medishield Life for the insurers to pay for, a ceiling on what is payable. It cannot be an open book and a blank cheque with the insurers footing every bill. If so, the cost would simply be passed down to the insured at great cost.
 
I hope the Govt would seriously reconsider this clever idea so that the people would have a choice to pay or not to pay. If it is so good, please make it optional and for all the rich to opt for it and for those who have reasons to want to live forever to pay for it themselves. Do not pass the financial burden to the innocent and the young and the majority that do not want it nor would appreciate it. Do not prevent people from dying. Dying naturally is a privilege, a blessing, and a right of being a human. Many would love to end their pathetic lives on earth soonest, the earlier the better. It is not a luxury to live a long life when one does not even have enough to eat. Prolonging life unnaturally is only a luxury for the rich.
 
Please think carefully. Please think of what the ignoramus are asking for. It may be true that some are asking for life long medical coverage. I bet this is a minority who did not know what they are asking for. We need wisdom in this issue of life and death. It is not simply about living and about the ability to pay, through a compulsory medical insurance scheme. It is geriatric care that is needed more.
 
This Medishield Life Scheme could be a very cruel scheme to many who did not ask for it. For those who cannot afford to live a life with simple human comfort, prolonging their lives is like making them a prisoner in a sick and dilapidated ageing body. Please, don’t help the people to extend their misery and pain on earth, and to empty their savings for it. They need their savings for the simple three meals. Don’t take that away. They don’t have millions in their bank accounts to feel happy and to want to continue living. They don’t need a heart bypass or chemotherapy or a pace maker or whatever machine to replace their failing organs.
 
Remember, when one passes 70 expect to die and prepare to die. That is the normal and natural thing to do. Do not prepare and expect to live another 100 years. It is a blessing to die naturally while one is still reasonably healthy than when one is bedridden and need someone to scrub your back. You simply stink and rot while still alive. And without the money you are dependent on other people’s charity and kindness to clean you and feed you. It is not filial piety to hang on to a life and to keep a dysfunctional body alive. Paying to keep a body alive but not working is an unkind act. There is a time to let go.
 
PS. When the Medishield Life scheme is extended to 92, it means you will have to continue to pay till 92. If it is extended forever, you pay forever. Tio boh?

Hsien Loong - We are all in this together

How many of you believe that you are all in this altogether?
 
First, how much are you earning and how much is a minister earning?
Second, what kind of homes are you living in?
Thirdly, how many houses do you own?
Fourth, how many houses do you own outside of Singapore?
Fifth, how much do you have in your savings?
Sixth, what kind of jobs are you employed?
Seventh, where do you eat, hawker centre, food court or restaurant?
Eighth, where do you send your children to school?
Ninth, do you have to worry for your next meal?
Tenth, do you have to worry about your hospital bill?
 
Are we in this altogether? Other than worrying about providing for your family, do you have to worry about your children’s future?

Hsien Loong’s National Day Rally – Not enough

Heard Hsien Loong’s Rally speech and what came across were some cosmetic changes that were less than expected after the hype by Heng Swee Kiat. There were great expectations for sure but now the great disappointments. With the strong ground shift and the negative sentiments, many were thinking that this would be a good opportunity for Hsien Loong to make some dramatic changes as preparation to the GE in 2016 or a possible surprise snap election. If these were all that the govt was willing to change to redeem itself and its falling popularity, it was obvious that many would see it as plain inadequate.

First the changes on high cost of healthcare. There will be some savings for the senior citizens at the polyclinics and those using CHAS. The changes to the Medishield scheme to Medishield Life is not as good as it first appeared. This new scheme will cover all the seniors that lived past 90 and at first glance sounded very attractive. But with this sweeping coverage that most seniors would not need, many would have died, many would not need a heart by pass or major ops, the failure to fine tune the needs of the very senior citizens would mean a huge paper cost to be shared by the rest. Everyone is going to pay for it.

Is this the best shot the govt could come up with and the need to raise the premiums for Medisave? What else is new? What was sorely missing is the silence on bringing down healthcare cost. Hsien Loong touched more on how to help the seniors pay and the need to increase the premiums for Medishield. What is so good about it when the cost is passed down to everyone?

In the case of housing, those earning up to $4k monthly household income would benefit from more subsidies and a lower net purchase price for 2 to 4rm HDB flats. The prices of these flats would still be maintained at the existing levels but the net sales price would be brought down to the levels of the 2005/6. The ignoramuses were clapping in glee like it was a big savings. They could only see how high were the current prices and thought it was a big discount and were very grateful. They forgot that the prices have been inflated so high and the supposedly lower prices were still very much higher than the prices in early 2000. There is nothing surprising that these people could be so easily deceived into thinking that it was a good deal. They could only see as far as the tip of their noses.

There was nothing mentioned about removing the upper income ceilings and many high income earners would still be disqualified from buying direct from HDB. How does this fit in to Hsien Loong’s statement that every Singaporean family would be able to afford a HDB flat? How many Singaporeans would still not be able to buy from HDB? I have received comments from a young couple that they were still excluded from HDB, and there were many highly qualified young Singaporeans that would prefer to remain overseas than to return to be robbed of a million to buy private properties because of the income ceiling.

This stupid policy means that many highly qualified Singaporeans would not return and their skills would be lost, a policy that literally kept highly skilled Singaporeans away from home. Is this policy meant to be this way so that the Govt can find the excuse to bring in more Third World fake talents to replace the sons and daughters of Singapore that they have driven away?
There were the usual big plans into the future, bigger Changi Airport and two huge puzzles of land in Paya Lebar and Tanjong Pagar for more concrete buildings to house more people. Do not be happy too early if these two big complexes are meant to house the 7m or 10m population. The existing infrastructure with the upgrades would still be inadequate, particularly the roads and public transportation. There will be rooms and housing for 7m or 8m, but could there be room for them to move around? It would be good if the new spaces created were meant for the same population size, allowing more breathing space for all, better facilities and bigger leg room. Fear not, it will be for more people, for more compact living.

The changes in some of the policies were to rein in the excesses of flawed policies but not enough to bring things back to an easier way of life. And the future developments would mean the squeeze and crams and jams would be worse. The cost of living will be up and up with more people cramming up in this island when the sky is the limit for building more Towers of Babel.

Would these changes be enough to win back more confidence and more votes in 2016? I doubt so.

Aggressive intent of Japan

An aircraft carrier is banned by its pacificist constitution, so the Japanese called it a helicopter destroyer. It has a length of 248m, much longer than many aircraft carriers in service. The Japanese lied to say it could carry 14 helicopters for disaster and search and rescue missions. In reality it could easily be converted to carry and launch offensive VTOL or STOL multipurpose fighter bombers to attack any country within range. It could easily launch the latest and most sophisticated F35s the Americans are trying to sell to its allies.

Japan can continue to lie but the world is not blind. Its remilitarization and aggressive intent is evident and it poses a clear and present danger to countries in East and South East Asia. And it deliberately chooses to name the aircraft carrier/destroyer Izumo, the same name as the flagship of the Japanese fleet that invaded China in the 1930s. This and the 731 painted on the fighter aircraft that Shinzo Abe sat on cannot be pure coincident. The aircraft carrier was launched on the anniversary of the bombing of Hiroshima and Nagasaki, to gain support and sympathetic sentiments from the Japanese people. The Japanese knew exactly what they are up to. They are rearming to resume their imperial military role of the past, maybe with the intent of avenging the atomic bombings of their country.

Japan has rearmed! And it is all done with the consent of the Americans who chose to close one eye to allow a strong military Japan to counter the rise of China. Japan and China is on a collision path, and hostility could break out between the two, only a matter of when. It may be opportune for China to think like the Americans, a pre emptive strike against Japan before it gets too powerful.

In a way God is kind, to allow Japan to rearm and to attempt another war against China, Korea and maybe even the Americans. And this war will settle all the blood debt of WW2 that Japan has yet to repay.

Solving healthcare problems?

There is a huge difference between solving high cost of healthcare and devising different ways for the people to pay for the high cost of healthcare. In the former, it is more about how to reduce the high cost of healthcare. In the later, the high cost of healthcare is taken for grant, it is a sure thing and cannot be brought down. So the trick is to tweet the mode of payment, how to squeeze money from the people to pay for the high cost of healthcare.

With the kind of premium that everyone is made to pay, especially the older folks, many are paying upfront and may not need it should they remain healthy or choose not to go for the expensive hundreds of thousands of dollars operation. And for many senior citizens, it is better to let nature take its own course when they pass 65 or 70. There is no need to cling on to life when the body is tired and wearing down. But for those who are rich or very rich and have all the money to pay for all the expensive treatment, let them choose to pay and to live forever.

If we can accept the premise that the medical insurance for the seniors, above 65 or 70, is to pay for not too serious and expensive medical treatment or major ops, to let them live with dignity with basic medical care should they be hospitalized, to make their final hours pleasant and not painful, the medical cost and insurance need not be high and can be absorbed by the govt. To go for expensive ops/treatment, hypothetically a sum exceeding $10k, let it be optional for those who want and can afford to pay for them in their own capacity.

Otherwise, with so many seniors and all demanding expensive treatment/ops, the premium is going to be unaffordable to many. There is a need to define what and how much to cover for the seniors. Perhaps the govt can provide a basic coverage, to be defined, for free. Additional coverage can be optional for those who can afford them.

With healthcare cost so prohibitive, there is a real need to streamline the expectations to suit the needs of different groups of seniors. This is the paying part, the affordability part. It is necessary for the govt to seriously put in efforts to bring down the cost of healthcare and there is no need to be extravagant in many things. There can be basic, economy and luxury class healthcare tailored for different kinds of pockets. Not everyone is financially equal and can afford to pay like a millionaire. In the days of old, the doctors billed the patient discreetly according to what they think the patient could afford. A comprehensive healthcare insurance scheme must take into account the different expectations and affordability of the insured.

Thoughts of a minister

A young reporter was interviewing a very dignified and prosperous looking minister.

Reporter:  A penny for your thought, Sir.

Minister: What is that?

Reporter: It is a coin Sir, like ten cent, twenty cent….

Minister: Never know they have such things.

Reporter: Have you taken a loan before, Sir?

Minister: What is a loan?

Reporter: Oh, when you buy a car, you borrow some money to help you pay first and then you pay back to the bank over several years.

Minister: Oh I see. I did know you can take a loan. I only pay cash.

Reporter: For your car, Sir?

Minister: No, for the houses I bought.

Reporter: Wow, how many houses do you have Sir?

Minister smiled: Honestly, I don’t remember how many I have.

Reporter: One last question, Sir. Have you been poor before?

Minister: What is being poor?

Cassandra’s article 0n 6.9m population in TRE

I pulled this comment out from Cassandra’s article on LKY’s comment on the 6.9m population posted in TRE. On page 223 of his latest book, ‘One Man’s View Of The World‘, LKY said “DPM Teo Chee Hean has put up a White Paper. Let’s wait a few years for it to be implemented, to see if the measures work”.

I feel very uncomfortable reading these two sentences. The govt is going to wait for a few years for it to be implemented. And the govt is not sure if it is going to work. The 6.9m population is still rolling ahead in full steam according to this comment. There is no change of heart and no change of direction. 6.9m is what Singapore is going to get in 2030.

The second part, the govt is not sure if it is going to work. How many in the cabinet or the MPs are convinced that this will work and what does it mean by work? This cannot be a one man idea, pushed through without the support of the team and everyone fiddling their thumbs hoping that it will work. This is a very big gamble on the future of the country and the lives of our people. What if it does not work? What are the grave consequences that the people will have to bear? One thing we need not have to worry is that most of us will not be around to see that day.

Why is there a need to take such an intractable risk of flooding the island with so many people when we are struggling with 5.35m or maybe now 5.6m or 5.7m oredy? Hey, this is no joke you know. This is not masak masak, tikam tikam.

The govt is casting the die, and die die the die must be cast in this way and hoping that the country and people will not die from it. I am beginng to be terrified. Can you blame me for feeling this way?

Stand up to be discounted!

In the National Day celebration, the same message, stand up and be counted is everywhere. Sinkies need to stand up for the country and be counted. But this is not always the case. Standing up for the wrong cause, for the wrong reasons, for the wrong party will get one discounted, not counted.

There are many concerned and serious Sinkies that have stood up but never will they be counted. The more committed and the doers have joined the political parties. Joining the wrong party means not be counted. You can only be counted if you joined the right political party. Why like that one?

And there are many concerned and responsible citizens who could not and would not keep quiet anymore, who put in effort and thoughts on the welfare of people and country and are standing up to stay their piece. They are doing it voluntarily, without compensation or any rewards or returns. They are selfless, passionate and committed to the good of the people and country. They are not only not counted but seen as insurgents and anti establishment. Despite their efforts, their comments, views and suggestions of what they see as wrong or undesirable and hoping that the Govt will lend them a listening ear were ignored, not heard.

These citizens are not even asking to be counted. They are prepared to be ostracised, to be labelled and branded as enemies, trouble makers, waiting to have a date with Sue. And all they are doing is hoping for the Govt to take note of their views and perhaps something be done to make life better for everyone, to create a fairer and more just society. That is all they are hoping for, to make things more right.

No need to be counted, no need to be recognised, definitely no National Day honours or be invited to the Istana, and no perks. Many Sinkies are standing up in their own ways to want to make this city a better place for all Sinkies. They have different views of things, wanting things to be done differently, but unfortunately everything they say or do will not be seen as the right thing and will be dismissed summarily.

We cannot be an inclusive society when alternative views or differences are never accepted by the Govt or people in authority. We cannot improve and progress when only one view, the right view, is seen as good and welcomed when even the Govt has acknowledged that they don’t have all the answers and solutions but will reject all the wrong views without even bother to give them a thought. The wrong views are not with us and will not be counted. Want to be counted, say the right thing and do the right thing. Thank you.

Recolonisation of the Philippines

The last vestiges of American colonialism in the Philippines ended with the vacating of Clark Air Base and Subic Naval Base in 1991. The years of ignominy when the Philippines were conquered by the Spanish and then the Americans were over. It is strange that the Philippines are begging to be recolonised today by inviting the Americans back to station American troops in the former bases. It is a voluntary kind of neo colonialism where the colonized is willing and happy with the new colonial master.
 
The Philippines are willing to trade or compromise their independence and sovereignty, national pride to be a semi colony all for a weak claims against China for some islands in the South China Sea. These islands were claimed by China centuries ago in an era when the law of the jungle existed and islands and countries were owned by finder’s keeper formula. The islands were uninhabited when the Chinese visited them and marked them as theirs.
 
On the other hand the Europeans went to take over countries, islands and continents that were inhabited by the natives. North and South America, Canada, Australia, New Zealand and the continent of Africa were founded by the European empires ignoring the right of ownership of the natives.
 
The Chinese definitely have much more right to claim the islands in the South China Seas under the predominant norms of those days. The Philippines want to challenge the Chinese to claim these islands under a new set of laws prevailing today which have lesser authority than the earlier laws. And the Philippines is banking on the Americans to back them up in a military confrontation with China for these islands. The Americans too have acknowledged in acquiescence to China’s ownership of the islands. Going against the Chinese claims would put their claim to the American continent and the right of ownership of other western dominion countries like Australia and New Zealand in question.
 
The Pinoys think they have a strong case against China and are ready to take on China even compromising the sovereignty of the whole of Philippines to become a semi colony of the Americans. Is the stake too high for some flimsy claims on a few islands that they are unlikely to succeed?

Chuan Jin’s Singapore core in employment flawed

Chuan Jin said a lot in Parliament about building a Singaporean core and giving Singaporeans a fair chance in employment. Unfortunately he is still stuck with the group think and a position that appeared good in theory but seriously flawed in practice. Let me quote him, “it is about making sure that the playing field is level and maintaining meritocracy as a cornerstone of our society. This will send a clear signal that the government expects firms to recruit and develop their staff on merit, and not on the basis of nationality and social ties.”
 
Talking about meritocracy in a vacuum is a very unenlightened position to take. Chuan Jin’s emphasis in ensuring a level playing field and meritocracy is seriously flawed. Can anyone see what I am seeing and why I said it is flawed?
 
In the first place Singapore is a sovereign state with first responsibility to ensure that its citizens come first when employment opportunities are concerned. The Govt owes it to the citizens to be gainfully employed and not to foreigners. Our citizens need a job to survive, to live and to pay for all the high costs of living. There could be some compromises when foreign companies set up business here but they should not dictate their wants. After weighing all the factors, employing Singaporeans first must still be advantages to them than to bring in their ‘special and irreplaceable’ talents that no Singaporeans can do better. I don’t believe there are many such creatures around. I think Chuan Jin should not accept such shitty excuses unless it is very specialized and technical skills are involved and not a matter of know who or a matter of preference.
 
A corollary to the sovereign state is that ensuring a level playing field for citizens and non citizens is not acceptable. Ensuring a level playing field is for citizens competing with citizens, likewise in meritocracy. Why should our citizens be competing on a level playing against foreigners in our own country when citizens not only must have privileges but also responsibilities that are abnormal than in many countries? Our citizens should demand a playing field that is in their favour and no need to apologise for it. The citizens deserve to be treated with special favours and advantages for being citizens.
 
Meritocracy cannot be practiced blindly and not be seen as stupidity. Only a fool will practice meritocracy with the world’s talents to choose from against the limited number of talents in his own country. If meritocracy is practiced to the hilt as the cornerstone of our society and talents from around the world can replace the citizens on merits, we can replace everyone in the country including the whole cabinet and the President. With 7b people to choose from, at least 100m will be better and more meritocratic than every Singaporeans in every job and should replace every one of them. Tio boh? Off the cuff, there must be at least 10m people who are more talented than the whole cabinet or parliament. Should they come and replace them all?
 
One more point, not every job requires top talents or the best of talents. Not every job requires straight As or first class honours or a Ph D. Many jobs can be done by a decent and good employee who is competent enough to do what is required. Many HR practitioners will tell you that not the best candidate or the best qualified is given the job. In many instances, the second or third best would be deemed good enough and a better fit.
 
As an example, a good HR practitioner with a first degree would be equally as competent as another with a first class honours or Ph D in a SME. The higher or better qualifications are redundant or extravagant for the job, and may be more costly in the long term. So it is not necessary that the more meritocratic should deserve to replace the less meritocratic. Only a certain level of skills, knowledge and competency are needed. You don’t replace a Singaporean with a foreigner because he is more qualified or over qualified. Meritocracy in this sense is misplaced and obtused.
Maybe I shall put it even more simply. When a good Taiwan made bike that cost $700 can do the job, why should one buy a European made bike that cost $2000 that may be a little better and more prestigious? In choosing the latter it is indulgence, extravagance and absolutely unnecessary, definitely nothing to do with meritocracy or getting the best.
 
Do not blindly practise meritocracy with no consideration to citizenship. Do not insist on a level playing field for citizens to compete with non citizens in our country. The citizens did not vote you to compete on a level playing field with foreigners. Remember what you promised to do for the voters? Do not utter carelessly about level playing field and meritocracy without thinking.
 
This is our country and the citizens deserve better and first priority in employment. If the govt cannot think through this, cannot see through this, what can I say? What kind of govt are we having, serving the interests of citizens or foreigners? To hell with a level playing field! To hell with meritocracy! This is a country and there is a citizenry to consider and to take care of.
 
The Govt must send a clear signal to employers, both Govt, local and foreign, that employing Singaporean is top priority and must not be conveniently compromised by lame excuses.
 
PS. A jobless citizen still needs to pay for a roof over his head, household expenses, children expenses, conservancy bills, cost of living expenses, medical bills, and many other social and financial obligations. He can't get by without a job.