High demand for HDB flats due to immigrants

The most authoritative political writer of the ST has given her take on the high demand and high prices of HDB flats. Chua Mui Hoong has concluded that it was due to high demand, particularly from the immigrants. She quoted figures to support her conclusion. 25,000 couples marry each year. Over 7,000 couples file for divorce annually and some may need a new home. In 2008, nearly 80,000 granted PRs and 20,000 given citizenships.The number of resale transactions in 2009 was 37,205, a 31% increase over 2008. Were her figures convincing? I think so. And she must have got them from official sources, not from the gossip circles. HDB has replied a few days ago that the cries of demands were misplaced as demands were not high and they have enough supplies to cater for them. Everyone who applies will get a flat in 3 years! And inspite of saying that, HDB is ramming up the building of more flats. I think if the demand is not there, the high building programme will end up with over supply. But then again no. Only those who have registered are considered demands and when there are enough demands then only HDB will build. Somehow HDB is missing something. Chua Mui Hoong should present her statistics to HDB to let them have a better look at the overall picture of population growth. But it may be of no use as the numbers may not be translated into genuine demands if the immigrants did not apply to HDB. So, who is wiser?

Are we better off?

An analysis of the UBS study: Singapore has the lowest wages and domestic purchasing power among the Asian Tigers By Eugene Yeo, Consultant Editor The worldwide study conducted and released by UBS lately, titled “Price and Earnings 2009″ has some unflattering results for Singapore. (download the study here) While our economy has the highest GDP (PPP) per capita in Asia at $49,288 according to a World Bank report (source:Wikipedia), our people do not enjoy a quality of life which commensurate with it. Though we are technically a developed first world country, some economic indictators as shown by the UBS study suggested that Singaporeans are not that better off than those in Third World countries. Low wages Singapore has a GDP (PPP) per capita higher than Switzerland, but our wages are way below the Swiss. The UBS study found that employees in Copenhagen, Zurich, Geneva and New York have the highest gross earnings. With its extremely high gross wages and comparatively low tax rates, Switzerland is a very employee-friendly country. The net wages used have been deducted for taxes and social security. Zurich and Geneva have wage indices (gross) of 119.8 and 107.5 respectively. In contrast, Singapore has a wage index of only 31.3, comparable with Moscow (30.9), Tallinn (28.7) and Johannesburg (26.7). In the Asia-Pacific region, it is exceeded by Tokyo (83.0), Sydney (74.1), Auckland (44.1), Hong Kong (42.3), Taipei (35.5) and Seoul (32.3) Low domestic purchasing power Where does an average income buy the most products and services? Wages alone do not determine the standard of living in a particular city or country. A better way to measure prosperity is to divide the average annual salary by the total price of a selected basket of goods and services (as used in the UBS study). This tells us how much purchasing power local wages. Again, Zurich (106.9), Sydney (95.9) and Luxembourg (95.4) topped the list – its citizens have the highest domestic purchasing power. Singaporeans have a low purchasing power of only 39.9, comparable to Kuala Lumpur (39.5), Warsaw (34.0) and Bogota (33.7). Other countries in the Asia-Pacific region which are ahead of us are Tokyo (82.2), Auckland (68.9), Taipei (58.9), Hong Kong (58.1) and Seoul (57.4). In other words, though the cost of living is higher in Tokyo, the average Japanese has a domestic purchasing power more than twice that of an average Singaporean. Though Malaysia is still a developing country and has a GDP (PPP) per capita of only $14,215, less than 3 times of ours, the ordinary Malaysian citizen has about the same domestic purchasing power as the Singaporean. Low relative purchasing power of wages This is calculated in the UBS study by using a specific, highly uniform product that is available everywhere in the same quality, and then calculate how long an employee has to work to afford it in each city. For the purpose of this article, the iPod nano (with 8 GB of storage) is used. An average wage earner is Zurich and New York can buy a nano from an Apple store after nine hours of work. A Singapore worker will have to work three times longer after 27..5 hours. The figures for selected Asia-Pacific cities are as follows: Sydney (9.5hrs), Tokyo (12hrs), Auckland (16hrs), Hong Kong (19hrs), Seoul (22hrs) and Taipei (23.5hrs). Again we came in last among the 4 Asian Tigers. Long working hours People work an average of 1,902 hours per year in the surveyed cities, but they work much longer in Asian and Middle Eastern cities, averaging 2,119 and 2,063 per year respectively. European cities had the lowest working hours per year. A global comparison showed the people in Lyon and Paris spend the least amount of time at work: 1,582 and 1,594 hours respectively. Singaporeans spent on average 2,088 hours at work per year with 11 days of vacation. This is less than Hong Kong (2,295) and Seoul (2,312), but more than Tokyo (1,997), Taipei (2,074), Sydney (1,747) and Auckland (1,884). Singaporeans also took the least number of holidays after Hong Kongers (10 days/year). High cost of living Singapore was ranked the second most expensive place to live in after Tokyo, surpassing Hong Kong for the first time. Let us compare the food prices in Singapore and other developed countries since food is a basic necessity. In the UBS study, a basket of 39 food items is put together and weighted mainly according to Western European consumption habits. The average worldwide cost of the basket is USD385. In Asia, Tokyo topped the list with an index of 124.7, followed by Hong Kong (96.5), Singapore (89.4), Seoul (89.0), Taipei (67.9) and Sydney (66.3) Conclusion The high cost of living coupled with low wages and domestic purchasing power condemns the average Singapore worker to an ignonimous, monotonus and stressful working life. Singapore workers have to work harder to earn the same amount of money and save for a longer period to purchase the same product. In 1991, then Prime Minister Goh Chok Tong promised Singaporeans that we will be able to achieve the “Swiss standard of living” within a decade. Ten years later, we have a living standard which is closer to Russia than Switzerland. Like Singapore, the Russians has a low wage and domestic purchasing power and Russia, especially the city of Moscow, has one of the highest cost of living in the world. The above article was emailed to me and I am not sure which paper was it published, most probably the ST or Business Times.

Consequences of grade inflation

More letters are pouring in and more grouses will be heard when 6A1s and 4A2s are not good enough for admission to Hua Chong JC. And the same thing will apply to admission to Raffles Institution. Parents are right to be fuming mad that their children with such great results could not find places in the two top JCs. Why? Grade inflation or Integrated Programme(IP) programme? Like it or not, the top students are in the IP programme and have already been admitted. The second best, now filling the places in the normal distribution of straight As are not the same as the best in the IP programme. It is damn good feeling to get straight As even in the Normal stream. But the reality is that straight As in Division Two are not the same as straight As in Division One. What shall the MOE do to please parents and students? Continue with grade inflation or grade the Division Two students as the Division One students which means that many may not get their straight As? Alternatively it can open up more places in the top JCs for these students and appease their parents. Tough situation requiring tough fixes.

The revelation of Pastor Rony Tan

I was told to watch the Youtube video. I did not want to bother. Then it came over the news that Pastor Rony Tan of Lighthouse Evangelism was called up by the ISD and made a public apology. Now it sounded serious enough for me to want to know what actually happened in the video. There were 3 videos actually, two on a Joseph Wee and a third on a woman named Rita. One was a former monk and the other a nun, and both were interviewed by Rony Tan on stage in front of his congregation. Immediately it was very obvious that the two interviewees were ignoramus as far as Buddhism is concerned, though they claimed to be monk and nun. Or at least they portrayed themselves as two simpletons who, after spending so many years in the religion and claiming to be quite devout, could not make any sense of the teaching. Or maybe they were simply a bit dull. In fact the interviews came across as a stage managed process all out to ridicule Buddhism. And Rony Tan was given the opportunity to make comments like being under the influence of demons, blind leading the blind, and false religion. He came across as the wise man and the other two like fools. But then he commented that Joseph was good enough to become a pastor and doing very good work in converting children to his religion. Everyone had a good laugh at the two silly interviewees and Buddhism. The message that Rony Tan was making was that his was the only true religion and others were false religions. And he knew where he was going while the rest were led by the blind. I am very sure that he knew where and what heaven is all about while the Buddhists did not know what is nirvana. He implied that since the Buddhists did not know nirvana and had not been there, there were talking about things that they did not know. This also implied that Rony Tan must have been to heaven or his believers must have been there and they knew what heaven is all about. As far as I know, the Bible said there is no Christians in heaven! Then how could Rony Tan be so sure about what heaven is all about? And he must have been conducting funeral rites for his followers that they were called home to be with the Lord. The other revelation is that he believed other religions were false or the blind leading the blind. I wonder what he would say when in the company of other religious leaders? Would he say, 'I respect what you all are believing in and your religions.' Then when he returned to his church, he could continue to preach his sermons about other religions according to his belief. Or maybe he will tell them the truth as he is not supposed to lie. Now he has been called up by the ISD and has apologised. Is he sincere in his apology and would not do it again? Would his apology be in conflict with his belief, after all he believes that he is on the right path and is telling the truth. Some comments in cyberspace said it was alright for religious leaders to preach about other religions to their followers within the confines of their religious abodes. Is it really alright? Or have religious leaders been doing such things all the while in their own sermons to their believers, running down on other religions? Now we can understand why some religions are so divisive and so hypocritical. Preaching one thing behind closed doors and putting on a smiling face and embracing the devils and demons in public.

How many casinos is enough?

One casino licence has been issued to Resorts World Sentosa. Marina Bay Sands should be getting theirs in no time. Would the two casinos be enough to satisfy the gambling urge of the Singaporean gamblers. And to include the Toto, 4D, Football Pool and Turf Club, I think we should have enough gambling instruments and organisations to please everyone in need of pleasing. With Singaporean gamblers now spoilt for choices, maybe it is high time that MAS take a more serious view of the financial industry, including banking and the stock market, to reduce or remove the gambling elements in them. The banking and finance industry used to be solid institutions for long term investment and perhaps slower growth. But with the ingenuities of the financial experts, many paper products were created and pushed to the investors with little regards to the harm they are causing to them and the industry as a whole. The minibond saga was a case in point. Tbere are many derivaties that are in the market, worthless pieces of paper that are not backed by any securities or collaterals, or heavily leveraged that when there is a call to dump them, many investors will end up with practically nothing but yes, worthless papers like the Lehman Bonds and other toxic products. It is opportune time to reflect on the health of the banking and finance industry and rein in fictitious and questionable products from the market. Just because the Americans are doing it, marketing it and playing with it, it does not mean that they are reasonably save products. They are mostly leveraged tens of times of their real values and at times the real values could be as much as the value of the pieces of paper they are printed. The banking and finance industry must return to their fundamentals and slower growth. The industry in American are highly geared to pay astronomical bonuses by taking high risks that are unbecoming of the institutions that are the cornerstones of the whole financial industry and the economy. The products are highly dangerous and only fit for the casinos. We don't need more casinos.