9/17/2011

Referendum to sell Singapore

At the rate it is going, in 30 or 50 years time, the original Singaporeans will be a minority in the city state. Either they failed to reproduce or they migrated. We used to be 2m. Now we are nearly 4m with new citizens taking up almost 50% of the population. The number of new citizens will only go up with our addiction for more head counts.

What this means is that whatever the 2m original citizens inherited and owned of this island, they now own half, including half of the reserves. The new citizens are taking half of the original Singaporeans’ share of the country’s wealth, and half of the reserves too.

If the foreigners are allowed to keep pouring into the country, say they formed 80% of the population, it will mean that the original Singaporeans will be left with 20% share of the nation’s wealth. And this does not take into account the land and properties that were sold to the rich foreigners.

The bottom line is that Singaporeans will eventually own less of this island. Yes the foreigners will also be citizens and have the right to a share of the island. This is not unlike a family inheritance. All the children will have an equal share of the family wealth. Then the god sons and god daughters, the adopted children, the children of mistresses, all came and taking an equal share of the wealth. Would that be a desirable and acceptable outcome?

While there is still time, and the wealth and assets are still there, and since they will be distributed to new citizens eventually, with the main beneficiary being the eldest son profiting in the process, would it be better to divide the family wealth equally before it is gone?

When no one cares about ownership or inheritance, when the prodigal sons are selling everything they could sell for their own benefits, for their own good, the rest of the children better insist on a splitting up of the family inheritance fast.

If, hypothetically, the whole island can be sold off as a going concern, like a business, and every citizen gets an equal share of the sales proceed, with new citizens getting a pro rated smaller share, it could be a nice way out. Assuming each citizen can have a share of $3m, at 3m population, the going price is $9 trillion only. Make it $10 trillion with the extra $1 trillion to be share by the new citizens, with a formula for sharing based on their tenure as a citizen. This should make everyone happy. (The actual sales price can be worked out after a full valuation of what the islands and all the assets are worth. It may not take 50 man years to do that.) The final price could be double if there are competitive bids to buy this enterprise by the superpowers.

There are many advantages to such a proposition. Firstly, the country is looking more like a hotel anyway and citizenship or no citizenship is not going to mean anything any more. In fact citizenship is too burdensome, and full of responsibilities and unfairness. Secondly, Singaporeans are calling themselves international citizens and wanted to be international citizens anyway. Thirdly, the world is opening its arms to welcome rich migrants. With the windfall, a family of 4 could be richer by $12m, plus whatever they owned, and they can go anywhere and be welcomed as rich expats. Is that not what everybody wants, money and a good life, instant gratification? Or they can still choose to stay put, as residents here, without being a citizen and with no NS obligation to irritate them. Nice right?

The new owner can run this enterprise whichever way they pleased. They can retain the services of all the civil servants and GLC employees, including the cabinet, to run it as before. Or they can change whoever they want. They can bring in all the talented foreigners, rich, skilled, or whatever, increase the population to any number, let the prices of properties ballooned, and there will be no citizens to feel aggrieved. It is a private enterprise, a hotel, a real business concern.
In the meantime, the rich Singaporeans, with loads of money in their bank accounts, can choose to go anywhere and live happily ever after with their shares of the inheritance.

How about it, a referendum to sell off the country, lock, stock and barrel, for money? No more emotional attachments and kpkb about foreigners, about govt, about prices, about politics, just become rich and happy, as citizens of the world. What option is there anyway? The country is being given away on a silver platter to all the new citizens and is trumpeted as the next good thing to happen. As sure as the sun will rise! It will be gone.

Of course this sounds fictional. But with the entrepreneurial spirit of Uniquely Singapore, could there be a possibility that it could happen?

9/16/2011

A revolution in Malaysia

First he took a major step to sweep aside all the historical baggage and irrational emotional misgivings to sign a deal with Singapore to exchange the railway land with comparable parcels of land. This brought a lot of ire from the old guards who criticized him for being a softie.

Then he talked about treating all the racial groups more equally to the displeasure of his UMNO radicals. Some even accusing him of selling out the interests of the Malays.

His minister also made an affront to conventional wisdom by wanting to limit the sales of properties to stop speculations and a spiraling of property prices.

Now he did the unthinkable, by abolishing the controversial Internal Security Acts that had outlived its usefulness and being abused by politicians to threaten, harrass and arrest political enemies.

The Malaysian PM Najib Razak is turning himself into a revolutionary of a kind that is beyond imagination. Who would ever imagine this aristocratic son of a conservative and ultra Malaysia Prime Minister taking such bold steps to change the ethos of the political culture of his country.

The changes that have started to roll under Najib will have wide ranging ramifications to the modernization of Malaysia and pull Malaysia from the doldrums of selfish and parochial politicking that is getting the country no where.

Malaysia is undergoing a revolution under Najib Razak. Would he go one step further by returning the banks and conglomerates they seized from the Malaysian Chinese and let the original owners run them back to health? Or would he be happy to let the bumiputras run them to the ground? The Malaysian economy has been stagnated for the last few decades when it could have flown off to the sky. The remaking of Malaysia cannot be done alone by the bumiputras and the bumiputra policies. Malaysia needs real businessmen and entrepreneurs to attain 2 digit GDP growth and to compete in the international markets.

The political revolution must follow with economic and social revolution.

Help for big time gamblers

The National Council for Problem Gambling is coming out to help the big time gamblers. The Singapore govt is offering Indonesia help to put out fires by fire starters. And today we have a front page news that a trader of UBS lost $2.48b for betting and hedging on behalf of the bank.

The world is getting to be a stranger and stranger place by the days. What is the point of trying to help fire starters to put up fires? The problem is not with the fire but the fire starters.

The other question is, who are the big time gamblers? The guy who blown away his life savings of $200k or the guy who betted and lost $2.48b? Or is it the guy who sits at the top of a huge bank worth trillions of dollars and authorizing the bank and its army of gamblers to gamble on behalf of the bank? Or is it the politician that put out his soldiers to wars hoping to reap financial rewards at the end of the game? Or is it the politicians that spend and spend without a care of when they are going to pay back, or be able to pay back the money they have spent?

We have just seen how America nearly toppled over. We are seeing Europe on the brink of a financial disaster. Who are the gamblers that are gambling with the nation’s wealth?

Definitely not the politicians? Neither were the bankers and fund managers gamblers. They are legitimate investors, fund managers, taking calculated risks with other people’s money. There is no reason to call them gamblers, while they gamble away other people’s money, the bank’s assets, the nation’s reserves.

The world today is really run by gamblers of all kinds. Everyone is putting his bets for a quick profit for his own pockets but declaring that they are investing for other people’s benefits. Some even claimed to be investing for the long term. When bankers and politicians are looking for quick profits instead of making steady profits and returns by taking small and measured steps, the world can be easily toppled without the need to have casinos. Every stock exchange is now a casino. Every country is also a casino.

9/15/2011

Malaysian Govt considering limiting home purchases

‘The Malaysian government may impose a one-house-per-individual restriction, according to Datuk Seri Ismail Sabri Yaakob, Minister of Domestic Trade Cooperatives and Consumerism.

He said that any individual who wants to acquire a second home must sell his /her first house and that the government is studying the possibility of approving only 10 percent rental increases for houses once a contract expires.’


Ahh, the immediate reaction from the smart sinkies is that this must be the stupidest thing to do. They have so much land and the only thing that needs to be done is to build and build and build, like what Singapore is doing. Just increase the supply and there will be no problem at all. Oops, I think to build and increase supply to prevent a housing bubble is only discovered by the smart sinkies recently.

Now, what is the issue? Malaysia has plenty of land, more than adequate to build a house for every citizen. And they are worried of the housing problem. In our little piece of rock when we are not careful and slipped, we may fall into the sea, and we are building and building and selling and selling as if land is unlimited. I think the Malaysians should come over and learn from our geniuses here. They can keep pulling out houses from a small hat like rabbits. It is simply magical.

Personally I am not sneering at the Malaysians. There is some wisdom to the crazy city folks thinking of selling everything when there is profit to be made. The housing game is going out of control, particularly when land is so limited. Everyone needs a home in the first place. And to turn homes into casino chips to be gambled on the casino table is reckless and irresponsible beyond words.

Not only Malaysia is worried about the housing gambling game. Australia and many other bigger countries are concerned about the wanton selling of land and properties to foreigners for speculation, which some called affectionately as investment.

There is a Chinese saying, die also dunno how to write. Housing and property investment are taking on a new shape and no longer the same any more. We may have something to learn from the Malaysians after all.

Two legs good, one leg best – Redbean

We have the best political system in the world. We are not bragging, the results are out there for all to see. In a short span of 46 years, we have created a first world city state with affluence as a way of life. Everyone is rich in his own way. Poverty is an exception. Practically every child is well fed, housed and in school.

All these we have to thank our one party political system. We can get it so far because of a one party dominant political system. If we have a two party system or multi party political system, we will be in a quagmire like many third world countries. But we persevered in a non communist, non dictatorial, non autocratic one party democratic system. And it works.

And this one party system must go on. Anyone talking about a two party or multi party system is talking about ruining the good things and the good life here. The alternative parties have made advances in the last GE. And it is likely to gain more seats in future GEs. But can they really help and make our country better? Will they be competitive and yet cooperative with the ruling party? Will they be asking embarrassing questions that they should not be asking to make the ruling party look bad in the eyes of the people?

Definitely not. There are too many things that happened over the last few decades that need answers. The people are fed up and wanted to know what is happening, the truths that have yet to be told. Just by asking these questions would put the opposition MPs in a bad light, that they are destructive, trying to score political points. And when the questions get to a stage of being more than just an irritation, would the ruling party say that it is part of the political process, that all the questions were belated and should have been asked long ago and the answers given? Or would the ruling party ride the high horse of rough shod over the opposition party MPs and harden its position?

The latter is likely to be the case. A two party system just cannot work, at least until the carpet is lifted, the cupboard of skeletons aired before things can settle down to a new normal. Only then can a multi party system go ahead in a truly democratic way.

This looks unlikely and a one party system is still the only way, the best way to go forward. But a one party system must not be of another political hue. It must be the same ruling party. A one party system that can work is a one party belonging to the same ruling party, not just any one party. Two parties are good, one party best.