Laws to maintain fair recruitment.

A letter by Sangeetha Bysheim in the Today paper described her experience in applying for a job. She said that all her interviews were by expatriates. This, she concluded, could be that most of the top jobs are occupied by expatriates or two, expatriates are likely to be less discriminatory. She had a point. And she suggested that we must have laws to prevent discrimination at work places, and in employment, especially when we are inviting more talented foreigners to take the place of less talented locals in the job market. I have a better idea and easier to implement. Appoint all the expatriates to the top jobs of organisations, or at least as the HR Managers. This will ensure that there will be fair play and foreigners will be given a fairer chance of getting employment here.

Can you afford to plan for retirement?

Professional people find it astonishing that 50% of Singaporeans did not plan for their retirement. The point is that how many Singaporeans can afford to plan for their retirement? Take the example of a two paycheck average $5k income family with two children. I believe this is representative of an average Singaporean family. With 30% CPF contribution over a period of 30 years, his CPF savings should be $1500 x 14 x 30, using 14 mths pay and all things remaining unchanged. This will give $630k. The remaining will be his take home pay at $1.68 mil. I f household expenses plus personal expenses for the two parents is $3k pm, total is $1.08 mil. The cost of raising two children to university level at $200k each is $400k. Presumably he owns a car for 20 years and monthly expenditure, including instalment etc is $800. This will cost him $192k. Then we have $1.68m less all these expenses the balance is $8000! Nothing left really. And all the holidays, social commitments, hospital bills etc are not even considered. His only savings is in the CPF. And the full amount would probably be used to pay for a 5 rm HDB flat and a little left in the Medisave. Can he afford to plan and save? Even if he is a thrifty person, thriftyness is frown upon in this island, he may put aside $100k. And all he needs is a major hospitalisation of one member of his family and it will be wiped out. In order to be meaningful, two old folks need to have about $200k in their CPF on retirement. This is based on the minimum sum and Medisave expectation of the CPF Board. If these average Singaporeans have no spare cash to save, what is there to plan? Just work and work is the best plan, really.

Cooking a Prime Minister

Taking on what Balji had said about the recruitment process of Singapore's future Prime Minister and his view that the current process may not be able to find one that meets our future needs, he presumed that there are other better methods for this. Now, what's wrong with the current process? It is a meticulous and systematic process, done in a methodical manner. It is just like a recipe. You decide on what you want to cook, find the material, go through the whole cooking process and pop, the perfect roast lamb or suckling pig is ready to be served. The academics would have a lot to pick from such a system. The choice of the final product, whether it is best to have a roast lamb or curry chicken or sucking pig, is very subjective. Then the quality of the ingredients will also be questioned. Can we pick or cook a national leader the way we cook a general or top civil servant? Historically a national leader, an exceptional leader, was thrown up by events and circumstances. They used to say that history makes a leader, or is it a leader makes history? Compare our system to the Western model and the Chinese model I think ours is closer to the latter. The American model chooses leaders based more on public appeal, a good looker, a smooth talker, and a lot of marketing and packaging. Not much intelligence needed. The Chinese model churns out a national leader through the many levels of screening and sieving. And the leader must prove himself all the way up. He needs to fight all the way, and that needs quite a bit of intelligence, real leadership and perseverence. Ours is a handpick system that looks at the quality of the candidate based on a known recipe. The leaders of today or yesterday will describe what they think the future leader should be like, and they go around looking for one that fits the mould. It is a cook leader. Is there a better system, or which is the best? Very subjective indeed.

Myth 138

Properties the best long term bet Many Singaporeans are laughing all the way to the banks with en bloc sales. And property investment is the big game in town. We are selling Sentosa Cove and other coastal developments at a high premium to the world's rich and famous. In the same breath we are preparing for global warming. And the forecast is that water level may rise by 4 metres or more. And we are going to built dykes around the island. Would Sentosa Cove still be there in 30 years when the water level rises? Would Sentosa Resort and our Marina Resort still be there and not be under water? Shouldn't these coastal developments be marketed for a 30 year lease?

Planning for retirement

Over the last few weeks we have heard warning voices of how Singaporeans are going to cope in their old age. There were concerns that Singaporeans are not planning for their retirement. It is all a big irony, an unbelievable irony! Singaporeans not planning for their retirement? Or do they need to? When we are talking about planning for retirement, what we are saying is saving that pot of gold so that we can live gracefully without becoming a burden to anyone. And the insurance agents will throw all the policies to you and say these are what you need. The painful thing is that after 20 or 30 years down the line they will tell you that you are not adequately covered. Not enough, after paying all the premiums! What about CPF? Singaporeans have the highest saving rate in Asia other than Japan. Probably the second highest in the world. We are saving at least 30% of our income. And again not enough. How I wish I have a million dollar income. Then I will also complain not enough. How many Singaporeans can afford to save some more when they are already saving more than 30% of their monthly income and struggling to make ends meet? How many have the luxury of earning a million a year and still complain not enough? The majority of Singaporeans will never save enough for their retirement if the cost of living is to run up continuously, and at an alarming rate. The only way out is to work till they die. And is there a need for Singaporeans to plan for their retirement when the govt is planning for them by withholding their life long savings in the CPF to be released in drips at their old age? There is no need for the lower income Singaporeans to plan for their retirement. They cannot afford to. They just need to work and work and work. The state has assumed the role of planning for the Singaporeans' retirement. How can anyone expect the Singaporeans to plan and save when they are already squeezed to save in the CPF and have nothing left to save? Do we really expect ordinary hand to mouth Singaporeans to save in the CPF, buy insurance policies and save some more in their personal savings accounts? Only million dollar Singaporeans can do that.