Housing, half hearted or half baked measures won’t work

Frankly, I am not too sure whether the measures to cool down property prices were half hearted or half baked measures. They have proven not to work, or they could be intended to work this way. Don’t expect me or any bloggers to know the whole story. We are blogging on superficial understanding of what was going on and at most we are just skimming the surface of a very complex problem, but not unsolvable if the will is there.

Bloggers are not paid to spend all their time and resources to understand the problem and to come out with good solutions. This should be the duty of the professionals who are paid millions and full time on the job to solve the problem. If they cannot to anything right, they should not be there and should not be paid the big salaries. Is this a difficult logic to understand?

The people on the job are professionals and must have a good grasp of the situation and the extent of the problem. It is very disheartening to hear professionals saying that the housing problem is due to one or two factors, a supply problem, or BTO and resale market are separate issues. Some even think that it is okay for foreigners to continue to grab anything available in the market.

Everything in the market affects the market. Everything is linked to the housing price that is ballooning, not just supply and demand, not just a matter of private properties and public housing. Even the scrapping of estate duties is a major factor that influenced the price of properties.

I am not here to give a solution. I am not paid to do it. The public demands that those that are handsomely paid to do their job, starting with a correct policy or mission statement from the govt on what it thinks is its role in providing housing for the people, and what kind of housing and affordability. Everything must gel together for a comprehensive solution and not piece meal. It is obvious that the people are getting very angry with the housing situation.

Can the govt get it right? If they can’t, learn from Malaysia and China. These two countries are serious in wanting to curb property prices and have their priorities right. Housing, a roof over the head at a really ‘affordable’ price is what they are trying to achieve. Even Hongkong is getting serious while we are getting reckless. They are less concerned with the profits of developers and those rich who are hoarding properties to get a good profit for their investments. And in Singapore’s case, with the high density and the squeeze on limited land, the concept of investment in properties and property speculation, foreign ownership, estate duties, must be thoroughly reviewed.

There are many vested interests at stake. What is more important?

Traffic jams at Bukit Panjang!

Where is Bukit Panjang? Quite near to JB lor. How could a little town in the periphery of the island be facing traffic jam? In the city, in the suburbs, still possible, but out in the country side, 5 mins to JB and the residents now have to coop with traffic jams. And it is expected to get worst when the BTO units are occupied in a few years time.

You really believe that we can take in another 700,000 people to raise population to 6m? Really, sure or not? Sure, at most is to have a gridlock over the whole island. Then more people can take public transport and no need to drive. Quickly buy SMRT and SBS shares.

That would not be the case. There will be no gridlock in the island. The answer is in COEs and ERPs. ERPs can be erected in Bukit Panjang and all the outlying new towns to control cars on the road. It is only a matter of how many more ERPs and how much the drivers will have to pay to keep the roads congestion free. The ultimate solution will be to erect ERPs at the exit of HDB car parks. Yes HDB car parks or condominiums only where there are concentrations of cars.

There will be no gridlock on our roads. That I can guarantee, even with 10m population. Have faith in the govt. Our roads will run as smoothly as they are today with 5.3m people. Double that or triple that will not make it any worst.

The political govt

What is that? It is a term I have coined for a blur govt. No, not that the govt is blur, but it is blur in the sense that it is not the govt but something like the govt, or the govt but not the govt. Ok, you are all confused by now.

Take Britain as an example. They have things like royalties, dukes and duchess, lords and what not. These are, in a way, political appointments, not the govt but the govt, the ruling elite. Or there could be MPs running a district or constituency that is doing all the necessary works but then someone is appointed as a mayor, presumably to do the same job of the MP, or an honourary political title. These are political appointments that can be done without, of no real relevance to the working of the govt.

The other kind of political govt are the titles or positions awarded to people for political reasons but not because of necessity of work. These are appointments like chairman, directors, advisors, assistant this and that, all because of political connection or patronage. This is the western model of corruption but not branded as such. It is like the current little clip in CNA when one notable was quoted as saying, corruption can be a gift to some and a token of appreciation to another.

What is troublesome about political govt is that it is not just appointments and titles. Somebody got to pay for it. And if the payment to such political appointments are huge and comes from the public coffer, directly or indirectly, it can be serious. It means that the country’s revenue is being used to pay for political appointees in the political govt.

All countries have some form of political govt, big or small. And the people ended up paying for it. No, it is not corruption but a derivative. It is just using public money to pay to people doing something not really necessary, like the dukes or whatever, not because the job or title is necessary but add ons, like badges of honour. Simply it is a political payout from the state’s fund, public money that need not be. In monarchies, it is a parasitic scheme that sucks away money from the state for the royal families, and the amount can be a strain on the country unless there is oil money coming out from the ground.

In modern nation states, republics and democracies, such payouts are getting more prevalent under different guises. No wonder many democracies in Europe are going bankrupt and the people did not know where the state money goes to. It is convenient to just blame it on the welfare system. But without lifting the blinkers, they would not know how big is the political govt and the political payouts. They would not know that there is a horde of dependents happily being paid enormous sums of money by the people without the people having any clue to it.

The people in the countries of PIGS are thinking that they were the ones bleeding the countries through welfare schemes. They did not know of the bigger schemes that their elite are parties to, and taking much more than them. And the elite will never admit that they are in the take, taking money from the public coffer.

Sinkies lack motivation

Don’t laugh, this is true. And this is the reason why they are not keen to take on low paying jobs. How could they? How could they survive when a HDB flat cost several hundred thousand dollars, a car also cost a hundred thousand and 3 meals a day cost $15! And there is public transportation cost as well. So how to motivate them to accept lower paying jobs? Some may find it cheaper just to stay at home and live with their parents.

Money can fail to motivate when it is too little or not enough. And this can be relative and can also be real. A young adult will need a thousand dollars to get by a month not counting housing and household expenses. Anything less is just not enough. Would he be motivated to work for $1k pm or would he be motivated to work for $2k pm when the cost of living is so high?

At the other extreme, someone earning $30k pm, would he be motivated to change job that pays him $31k, and worst, when the heart is not in the new job, when there is simply no interest for the new job? Maybe try doubling the amount like $60k and throw in more perks for someone who is not interested but can be bought over. The excessively high offer could extract some interest for a while but not for along as money, like drugs, need to be increased in dosage to acquire the same effect as before. That means more money will be needed tomorrow, next month and next year to keep the employee interested.

This money and motivation problem could be seen among the gods. Look up into the clouds and it is not unusual to see the gods feeling down. Why should they be made to do things they are not interested when they were happy in what they were doing before? And offering them money, how much and how much more, and how much longer before they feel jaded again?

Is this the problem facing our political leadership? Putting square pegs into round holes and holding them there by plastering them with more money and more money? It is definitely easier and less costly to motivate someone earning $2k with a $20k job. He would work 24 hours for it and never feel tired. What effect would it be to offer someone $50k when the person is already getting $50k and to do something he does not like? Yes very costly and very ineffective.

Party time for Sinkies

The Trojan Horse is in the city. Let’s party. Sinkies are entering an enjoying the golden years. Prosperity is everywhere. Practically every other Sinkie is a millionaire or multi millionaire. Open the champagne, lay out the tables with good food and wine and everyone should go celebrate, have a good time.

There is no time to waste in whinning and kpkb. Enjoy while you can. Enjoy while it lasts. Pray the party never ends. Pray the night does not fall. There will be no hangovers the morning after. Sinkies will not remember when the party ends.

For those who are able and smarter, it is the time to grab as much as they could before the curtain comes down.