Worried for Boon Wan and the HDB

Since Boon Wan’s revelation that HDB was losing money for every flat it sold and the amount was a scandalous billion dollar annually, he has been questioned and ridiculed by many bloggers who simply could not believe in what he said. Some of the attacks were quite personal and very unpleasant. What is more worrisome are the losses incurred by HDB now and later on.

According to Boon Wan, the annual losses over the last few years were about a billion, ie every year but not sure how many years he was referring to, no matter how many flats were built. The building programme was ramped up only last year after he came into office. The number of flats built was very small during the watch of his predecessor that led to the current housing problem and high property prices. So, how much is HDB losing for every flat that it sold? And how much will HDB be losing if the population increases to 6.9m? At 6.9, HDB will need to build another 400,000 units to house the increase of 1.6m people at 4 person per flat.

Let me hazard a guess. Taking a best case scenario to do a rough calculation, the building of 50,000 units under Boon Wan, and using his annual $1b loss, HDB should incur a loss of $20,000 for every unit sold. Tiok boh? If $1b is the loss when only 10,000 units were sold, then the loss per unit should be $100,000.

To build another 400,000 units, the loss could be in the region of $8b to $40b depending on which number one is using. This is a serious amount to lose and a big sum to save if the population is not increased and there is no need to build the 400,000 units of flats.  Would it be prudent and make more economic sense not to increase the population to incur more losses? But this is not all. Boon Wan is trying to bring down the prices of HDB flats from an average of 5.5 years of the buyers annual income to 4 years. This would definitely add to the losses that HDB would have to incur. I am terribly worried as to where the Govt is going to find the money to subsidise these losses. Yes, this is a lot of money and it must come from somewhere and someone would have to pay for it.

Maybe Boon Wan has already worked out the sums and the public need not have to worry. The flats will be cheaper and the losses would be taken care of, somehow.

PS: The original $80b to $400b is wrong and should read $8b to $40b. I have amended the text above.

Leslie Chew, would a gentler touch be better?

As expected, the social media and the opposition would have something to say regarding the arrest of Leslie Chew, the cartoonist. Cherian George has spoken and so has SDP, calling for a gentler touch and no need to use the sledgehammer to smash an ant. Unfortunately their calls could make things worst.

It is not right for Leslie to use the term ‘racist’ on the Govt as it is accusing the Govt of a very serious act. The part on the judiciary is also touchy as the integrity of the judicial system is being questioned. But the reaction by the Govt is seen as being too harsh, over reaction. The question is whether a call to retract the statement would be good enough, and for added measures an apology in his comic front page.

Leslie Chew is just a small guy, ok his cartoons are rubbing people up the wrong side. What I feel is necessary is for Leslie Chew to do some damage control by cleaning up the false or wrong image that he has painted of the judiciary and the Govt, to right a wrong and close the matter. Arresting him just make the matter looks so uncomfortable for a first world country. Other than the converts who would believe in anything, how many would really believe the accusations by Leslie Chew? Many would brush it off as some wild accusations. It is as good as calling an angel a rapist when it is obvious that that is not true.

Going too hard on Leslie Chew may send a message, 杀鸡吓猴, and many messages to the world the kind of society we are living in. What happens to the kinder society and the gentler touch?

Yes, Leslie Chew has printed something unsavoury. How much damage is done by Leslie Chew’s comment to deserve a police arrest? The whole world is watching. After this, the Govt may need to mount a bigger PR exercise for the smear that came with the handling of this case.

More PMETs retrenched

The majority of people losing jobs last year were PMETs, forming 54% of the 11,000 made redundant. The percentages for 2010 and 2011 were 35% and 42% respectively. The other interesting point is that the PMETs that were retrenched were getting younger, in the 20s, 30s and 40s, not necessarily the 50s or older.

The dicey part of this information is that without job security in Sin City, these PMETs that were retrenched are going to have a hard time, really bad time. Not only they have a family to look after, school going children, there is also the 30 year mortgage to pay for. 

Job security in Sin City is a top most concern to all Singaporeans. They cannot afford to go without work for at least 30 years. And for these PMETs to lose their jobs at such early ages this is troubling even if they could find a replacement job fast. Any long break without an income is dire.

Isn’t this frightening? And we have several hundred thousand foreign professionals being employed here while our locals are getting the butts every now and then. This is no joking matter. As a country we cannot afford this kind of situation to get worst. It will only aggravate the already big pool of unemployed PMETs and will cost a heavy strain on the social fabric of our society.

The Govt and MOM cannot be cavalier with this problem as it will hit more and more citizens across all industries. The govt service may be affected too, including those in uniform or in civilian if the direction is not reversed.

Mysterious things happened to the FT myth poll

I am certain that the number of respondents to the poll was more than 90 last night. I dunno why the number has dropped to 22 now. Google system must be suspect, unsteady, unreliable.

Good news, 71 F35s on the way

According to My Paper today, an US Air Force Lieutenant General Christopher Bogdan has said Singapore is close to a deal to buy 71 pieces of the yet to be operational, yet to be combat tested leading edge multi role futuristic combat aircraft from the USA. It will cost only $11b or about $155 mil a piece. Now that is cheap. The US must have slashed the price to make it so attractive that we are going to get more than the earlier rumours. Or maybe we have gone there and drove a good bargain, for cash, 50% discount, take it of leave it.

The best part of this deal is that the aircraft is still on a developmental stage and would definitely be the most modern and fresh out of the oven aircraft that any country can hope to buy from the Americans. Often the Americans would sell only aircraft that have been in service for 20 or 30 years so that the buyer would not get the state of the art technology and aircraft. Singapore must be in a very enviable position to seal this deal.

With 71 of the finest and most advanced aircraft available in the future, no delivery date mentioned yet, may 10 or 20 years, we have positioned ourselves as the mightiest air force in Asia. North Korea and even China would not be a problem if they dare to launch an air attack on us.

Singaporeans can now sleep in peace. Our sky is safe. Good buy.