12/09/2011

A right policy will be well accepted

Has the govt came out with any policy recently that is tough but willingly accepted by all parties, including those that were targeted by the policy? The latest curb on property speculation is one of those rare policies that can be classified as tough and good. The affected parties, particularly the foreign speculators knew that the game is up. They have no rights to complain, neither do they have the right to speculate properties at the expense of the citizens. That is another story of a flawed policy.

The developers quietly resigned to the fact that it has to come. Anyway they have built in all the profit margin and the only thing that would affect them is lesser profit. They are not going to lose money or any sleep. They had a good time over the last 10 years with very good profit. So it is time for a break and a deserving holiday.

Local speculators may grumble a little but they would find other places to speculate and make money with their money. Some interest and money may go back to shore up a dying stock market.

For Singaporeans who are genuine buyers of a home, the relief is welcomed though a bit late. Better late than never. But more needs to be done to protect them from paying a ransom for a home that they need simply to live.

As for the rest of the Singaporeans, the only thing that may matter is that the paper gain from their properties will slide down a little, but of no significance. And some may change tack and instead of property prices are affordable, they may claim that property prices are cheap. Both positions are simply silly as the base has changed.

Property prices are still far too high for living and still not affordable to many. It is only cheap for the speculators. The illusion of wealth of living in a $1m flat is just an illusion. When the flat costs $30k, $300k or $1m, if it is the only asset to live in, it is better to be cheaper than more expensive. And don’t have to worry about paying higher property tax that is based on rental income that is irrelevant to the ordinary citizens.

There is a need for more pro people policies and policies that would not draw curses at the policy makers. This is one such policy that no one will curse at Boon Wan other than a few late speculators.

12/08/2011

Getting to be more like Malaysia

Several years back there was a property boom in Johore. The developers built and built, huge estates of landed properties for sale at a fraction of the price in Singapore. See also salivate. Many Singaporeans went in to buy and buy. Then the citizens complained. Singaporeans buying up everything and pushing up the cost of living.

Suddenly new regulations came out on ownership and stamp duties. The property boom collapsed as Singaporeans could not buy anymore. Property developers also went kaput.

Familiar story that is being repeated here. Why let the situation gets so bad before doing something drastic?

China must prepare for war

When the mad man is broke, and agitating for war, China has to be more alert and prepare for war. After starting wars and fighting wars for the last 5 decades, and impoverished a great nation, the richest nation the world has ever seen, America is now under a mountain of debt. And the debt keeps piling up daily with more expenses for war. And war is the only business that America is hoping to keep its economy running.

Imagine if America had not embarked on this unending adventurism and destruction and killing of other nationals, America would still be the richest and most powerful nation on earth. It is still the most powerful nation on earth, but no longer the richest, maybe looking to be the poorest. But they are optimistic, and leaders of their allied countries are saying kind words to them. So are the Americans themselves, that they will come back stronger and richer.

The stark reality is saying otherwise. For instead of rebuilding its economy, it is still relentlessly pursuing wars everywhere. The next target, China, is going to be very costly. It is still hammering at China’s door. It is asking China to tell them all its military secrets. Is America willing to tell China all its military secrets?

It continues to pressure its crony allies to provoke China, in the East China Sea, in the South China Sea. Chinese fishermen are fair game to be arrested by the Navies of Japan, South Korea and the Philippines.

Hu Jin Tao has responded with unflinching words, that China must prepare for war. Its naval forces must armed and equipped itself for imminent war with the Empire. The Empire may continue to send its cronies to provoke China. There must be a time when the limit is crossed and China needs to kick asses. As a major power, it cannot be provoked or harassed continuously by pesky little countries. China must carry the big stick and use it when the pests come too close.

And it is a matter of time before China tells the US to get lost and stand up to fight for its rights. It is very important that before it does so, that its military is strong enough to take on the Empire. It has to, and it is only a matter of when.

Leave it to the Malaysians

As I was pondering over how Iskandar Economic Zone could rival Singapore and turn Johore into a blooming state with all the vibrancy that this island wants, the Malaysian govt just threw a spanner into the works. Instead of facilitating travel between the two states a breeze, they are going to raise toll fees into and out of Johore. And it is reported that the increase is 6 times the current rate. There you have it.

So, will more Singaporeans go over? Or will the cost of doing business going to be cheaper? Actually still cheaper because of the exchange rate. But it won’t be long when more and more cost are added into it.

Are we chasing the high net worth foreigners away?

The best indicator of whether more foreigners are coming is the MRT. Just take the train regularly and you can feel and sense whether there are more or less foreigners in the country. These few weeks I have noticed an exceptionally higher presence of foreigners in the train. They are all over you, front, back, left and right. And the whole train smells.

I only wish the ladies will wear a little more fragrance to make the air more pleasant. Maybe they have given up hope as the smell is so over powering that their expensive fragrance may lose out to the competition.

And yes, there are more foreigners, the foreigner workers, not the foreign PMETs. They used to be a lot of time. But lately the trend is changing.
And with the surprise this morning, yes, surprise, hike in stamp fees for property speculations, the high end foreigners may also move out. No more money to make from the Sinkies. Yes, whenever some speculators, local or foreigners make money from speculating properties, someone loses. Who is that someone? No prize for getting the right answer.

The net losers in the property speculation game are the Singaporeans. Other than the property speculators, there is another big winner, or two actually. The developers and one more, this one cannot mention mah. Can only guess.

Why do we want more foreigners to speculate properties and in the process Singaporeans ended the big loser, holding the baby? The same rationale applies to the stock market. Why allow all the big funds to come here and clean up the market with their super computers? Whose money is being swept away? What is the net gain for their presence? Or what is the net loss for their presence, big funds speculating in the stock market and the rich foreigners speculating in the property market?

Oh yes, more vibrancy, more oomphs, a vibrant financial centre. Who is paying for it? I simple minded, only want to know at the end of the day, is it a gain or a loss to the country and people?