Turn SMRT into a National Service

The General has been appointed as the CEO. He is bringing in more soldiers to help him run the business. Drivers, logistics, transportations are all key elements in a big armed force like the SAF. The trained manpower and their expertise are relevant and very important both in war and in peace. It is time to nationalise bus companies as part of the SAF logistic arm. One good thing for sure will not happen. No strikes. The next big thing is that the running cost will be down, with NSmen as drivers and guards, yes the installation will be well guarded, no more vandalism. 

The introduction of army discipline will do well for the transport services, with healthy and fit NSmen, young and vibrant and following orders, the buses will be running like clockwork. No need to recruit foreigners. No need to have union and unionist problems. All disciplinary problems just leave it to the RSM.

Routine orders, stand by bed, daily inspection, fitness exercises, cleanly pressed uniforms, a perfectly discipline workforce. What can be better? No need to please shareholders, no need to pay exorbitant management pay and director fees, which means, yes, lower fare. This is like a wet dream. 

Commuters can look forward to lower fare and stable fair, no regular fare hikes. And the management do not have to worry about the profits to pay the shareholders.

Another big plus, with the experience in driving through the city, they will be an asset in FIBUA, knowing every nooks and corners and negotiating all the difficult turns through ground knowledge.

What do you think?

Good reasons for Olam to call off bond/warrant issues

If I did not hear it wrongly, one of the main reasons quoted for this cash call by Olam was to test its ability to raise fund from the market. This has been proven to be true with the $1.25b issue with Temasek’s undertaking to pick up all leftovers. And since Olam’s CEO has claimed that Olam did not have equity problems for the next 12 to 18 months, announcing the cancelling of this bond/warrant issue will pull the carpet under the feet of its critics.

It would also make Temasek look good to the citizens of Singapore. The perception now is that Temasek is rushing into such a deal like they did when the western banks came knocking on the doors and not enough time for due diligence. And if extending this helping hand ends up in the same way as in the last financial crisis, burning a big hole, it is not only a matter of red faces but the whole credibility of Temasek would be in question. Not forgetting more public money down the longkangs.

Some were critical of this intervention by Temasek using Sinkie money to save a non GLC companies. The white knight should be the parent company Kewalram Chanrai Group. Why should Temasek put its neck out when the parent company of Olam is not a party to it or prepare to lose its own money? Is the management of Temasek taking this too far, to bail out a non govt related entity using public funds just because it is a major shareholder and risking to foot the full bill for Olam? The non involvement of Kewalram Group in this bond/warrant issue is making people nervous and unhappy. Temasek should insist on a bigger participation by Kewalram to share the burden and the potential loss. Perhaps this is already done. Perhaps Temasek knows better and this is another good deal, another fire sale, to reap big profits. Whatever, Sinkie money must not be put to unnecessary risk too hastily. The only consolation is that Sinkies need not be unduly worried as Temasek is in good hands and getting the best advice money can buy.

SMRT - A little revolution and 6 martyrs

The SMRT strike was like a little revolution in Sin City that unraveled a lot of nerves and the false sense of security. How could it happened? It should not have happened at all, if only the management was not complacent, more sensitive and not to treat the grievances of foreign workers as something that can be kicked further and further down the road. The workers were on 2 year contract and in no time they would be due for repatriation. Maybe this is the mindset, and there was no urgency to settle anything.

The aftermath of the strike after the govt moved in with a heavy hand, a no nonsense and zero tolerance for strike, elevated 6 strikers to martyr status while 29 comrades were sent home. This is not all. The sacrifice of these comrades did not go in vain. Their grievances are being attended to immediately with the CEO sitting with them in their bed bugs infested bunks. There were promises of improved living conditions and token pay rises.

But things are escalating and more good news is in the air. The Minister of Transport, Lui Tuck Yew, said the Govt recognizes the need to increase the salaries of bus drivers. Now all the drivers, local and foreign are in glee and only the strikers to thank for. And the Union Chief, Lim Swee Say said that the Union is looking forward to serve the foreign drivers, probably laying down the red carpet for them to join them. They would not be any need for little discussions that led to no where. The Union will be representing them to get fair wages and good living and working conditions.

Now for the bad news. Lui Tuck Yew wants to increase their pay but is asking where the money should come from. I am very happy that I do not take buses for my transportation. Don’t look at me. The bus commuters are likely to have to share the woes of the bus drivers, foreign and local drivers, to give them a big angbao for the Chinese New Year.

I would like to suggest, of course it would be of no use, that the fat pay and bonuses of the top management, the directors, and the big profits of the transport company be slashed for this increase instead of the poor commuters. They are too fat for their own good. Okay, fat hope, I know. We don’t even believe in progressive taxation and how could the rich and fat be made to pay for the increases of the drivers? It must come from the poor commuters.

Did I forget that $1b has already been set aside for something like this?

Peace in East and South East Asia, the American Myth

For nearly 40 years after the Americans fought its last war in Vietnam and scooted out of the region, East and South East Asia enjoyed unprecedented peace. The primary concern of the countries in the region after Vietnam, 1975, was economic development and trade.

All this is changing when the Americans decided to return to the region in its so called pivot to Asia. The Americans are telling the countries that they need America to keep peace and stability. The truth is just the opposite. In trying to justify its presence and return to Asia, the Americans have been behind all the tensions in the region, encouraging little countries to challenge China with tacit support of the American war machine.

The Americans are also signing more military pacts with countries in the region in the name of peace and stability, starting with Australia and New Zealand. It is reviving its treaties with Japan, the Philippines and even Thailand. It is encouraging the remilitarization of Japan and egging India to play a bigger military role in its containment of China. These are the American’s way of a peaceful return to Asia. In the wake of its return, a trail of tension has been building up. And it is exactly this, created by the Americans, to tell the countries in the region that they need the Americans in order to have peace.

The truth is that there were peace and stability till the Americans made its presence again and war could break up anytime now. And the Americans are telling the countries in Asia that without the Americans, there will be no peace and stability, that Asian countries cannot keep peace and must be led by the Americans. And the willing spoilers in Japan, the Philippines, Vietnam and India are actively provoking China to respond aggressively to vindicate the American position that America is the answer to peace and stability in the region. And of course, China is the aggressive and expansionist power, asserting itself and bullying the smaller countries.

Ethics and fair practices in the banking industry

A friend of mine, a senior banker, attended a bankers’ dinner several years back. The Guest of Honour was none other than Jackson Tai. In his speech he stressed on the need for ethical and fair practices in the banking industry and he lamented at the lack of it. Some banks were big culprits in violating all the rules of decency to take advantage of a situation, of clients and customers, just to shore up their bottom lines. I was kind of huh, how could respectable bankers be so unscrupulous? I choose to take a neutral line, half believing until proven otherwise.

One of the ugly practices of the banks was to steal clients from competitors by undercutting on the commission. Some bankers even stooped to such practices within the same bank, stealing clients from their peers and associates. It was nauseating that bankers could behave in such despicable and unethical manner in an industry that places great importance to honesty, sincerity, trust, ethics and fair play. This cannot be true either.

What was silly was that the undercuttings ended with the banks getting lesser returns than before from existing clients that were already customers of the banks. And according to this banker, the top management of banks did not even know that they have short changed themselves while throwing away all the good practices and human decency, to look good for some individuals or departments or the bank. Further, for doing so, they exposed themselves to anti competition practices that could bring forth a lot of embarrassment if reported in the media. But these were in the past. Thank God.

Would history repeat itself, that banks would compromise their integrity and reputation to steal clients in unfair and unethical ways? Hopefully this will not happen again as the bankers were supposedly dignified professionals and men and women of great honour, trustworthy and respectability. Indiscretion of such nature is taboo in the industry and beyond them.

I rather be naive and innocent to believe that bankers will be above unethical practices and will live to their reputation as honourable and reliable professionals of the most important industry that touches all industries. I still believe in the perfect picture, of wholesome goodness, that all things are well beneath the superficiality.

I believe that no bankers would compromise ethics and morality to indulge in silly practices that are short sighted and could bring them down with dishonour just to shore up the bottom line.

I believe that the Competition Commission of Singapore would be watching such violations closely and that they know that everything is fine.

I believe that what is happening in the US where banks would cheat their clients by recommending them rubbish products that banks wanted to get rid off, or churning the accounts of their clients for profits would not happen here.

I also believe that before the Dodd Frank Law comes into effect, our banking system will do the necessary to observe the decency and propriety that this law is supposed to do and avoid a conflict of interest the law intends to stop.

I also believe that the banking industry is in good hands, run by honourable men and women.