Outsourced to overseas operators to hire Singaporeans

Outsourcing of services to cheaper 3^rd world countries for less important services have been going on for several decades and the business of outsourcing is still doing well as the business competitiveness keeps going lower and lower down the value chain, from a cheap country to another cheaper country. To the business that outsourced its services, it is all about keeping cost down. Nothing else matter especially in the banking and IT industries where sensitive data and critical operations can be compromised, sabotaged or important data stolen. No, these are not important as long as there is cost savings.

Not all oursourcing services goes to cheaper countries. Some outsourcing went to developed countries like Australia, New Zealand and now UK is also in the picture. I was told by someone who was fuming mad that he lost a bid for a very big job to an Australian agency. But this was not his sore point. The pain came when the Australian company contacted him to be the subcontractor as the Australian companies did not have the expertise or his expertise was cheaper. What it meant was that the Australian agency ended up as the main contractor and getting the first and biggest cut of the pie. He ended up doing the donkey work as the subcontractor with a few pieces of crumbs.  Singapore job given to foreign companies to make the money and Singaporeans still ended up doing the job for less!

This kind of outsourcing is not exploiting the cheap labour of foreigners but on Singaporeans. And the foreigners get the most profit.

There is now a hybrid model of outsourcing. This is outsourcing to a 3^rd world country, presumingly cheaper, only for the 3^rd world agent to hire cheaper locals to do the job here. This model just surfaced in the LTA officer beating up a Uber taxi driver case. LTA outsourced its parking and traffic control services to a foreign company called Ramky Cleantech Services. I found this out from a post in TRE. And this foreign company then hired Singaporeans and locals to do the jobs here. I am not sure if the fighter LTA officer now arrested is a local or a Singaporean.

Anyway, this is the new model of outsourcing services. What is the advantage of such a costing saving arrangement? If the foreign company is hiring locals or Singaporeans and pay them cheaply, how cheap could they pay them and how much would be the savings? From this beating incident, the LTA officer must not be paid much as he was not interested in his job. I think the most savings must come from top management staff. If this company is operating in a 3^rd world country, and their management staff are located in the 3^rd world country, they can’t be expected to be paid in the millions like in Sin City. There must be a lot of savings from not paying their management staff in S$ and in the millions. I think this makes sense.

I am not sure how many different models of outsourcing could there be. I know one model would not happen. This model would be setting up a Singaporean company overseas, hired Singaporeans in top management and pay them millions to hire workers in 3^rd world countries. The savings cannot be much even if the rental is cheaper. The Singaporeans would demand for more for hardship pay, living in a 3^rd world country and suffering the inconvenience of living.

What do you think?

The two most feared political developments in East Asia

I am looking at this from the perspective of the Americans and the Japanese and their interests in the region. There are two developments that would not only make them crazy but turn purple. And they are doing everything possible to make sure that these two events must not happen. There is a third event that is even more fearsome than these two. I shall discuss about that in an article by itself.

 

What are these two events that the Americans and the Japanese feared most? It is reunification, the reunification of the two Koreans and the two Chinas. When the two Koreans reunite as one people and one country, the American bases in South Korea would have to close shop. There is no need for another Vietnam War or Korean War and it would send the Americans packing. There will be no more opportunities to keep inciting the North Koreans, to provoke them and called them aggressive or part of the Axis of Evil. There will be no opportunities to conduct war games in the seas around Korea. There will be no reasons to force the South Koreans to pay for American protection, to pay for American military hardware. There will be no reason for the South Koreans to put their armed forces under the control of an American general. There will be no opportunities to create false flag incidents to pit the two Koreans to kill each other. And South Korea will become a full fledge independent state, reunited with North Korea in a new, bigger, economically and militarily more powerful Korea.

 

A new united Korea will be as big as Japan, with equivalent arms to boot and with nuclear weapons. Japan would not be able to play the South Koreans to hate the North Koreans, to perpetuate a divided Korea that would be no threat to Japan. Japan will have to deal with the Koreans as equals, and cannot think of ruling them all over again, and no more wild ambitions on Korean islands and territories.

 

The first victim of a reunited Korea will be Japan. The Americans will raise their hype of a dangerous Korea to Japan’s security and would insist on having more military bases in Japan to protect Japan. Japan would have to cede more land to the Americans, to pay for American protection and be a confirmed colony of the Americans. After losing their bases in the Korean Peninsula, the Americans have no choice but to turn Japan into its front line of defence against a perceived threat from Korea and China.

 

And what would happen if China and Taiwan would also reunite at the same time? Both the Americans and Japanese would go bonkers. They could no longer provoke and incite the Taiwanese to irritate the Chinese. They could not play the two Chinese states against one another. There will be peace and unity in the East Asia continent. Japan and its colonial master would find themselves surrounded by China, Korea and Russia. They will be isolated if necessary by the three countries.

 

When this day comes, there is a great likelihood that Japan too would make peace with Korea, China and Russia and ask the Americans, please go back to America. There is peace in East Asia and there is no need for an American presence in the East China Sea.

 

For the time being, Japan and the USA will be putting in extra effort to ensure that Taiwan will keep having its independence dream covertly supported by the Americans to be a constant pain and irritation to China. Likewise both Japan and the USA would never allow the South Koreans to reunite with North Korea and would continuously raise the threat of an aggressive and mad North Korea waiting to invade the South and kill the South Koreans.

Lawlessness in Singapore

A LTA officer was seen beating up an old Uber taxi driver in full uniform. This was caught on video and is being circulated around like wild fire.  What is happening to Singapore when a govt official thought he could go around beating a citizen? When criminal intimidation without hurting another person is a serious offence, now you had an officer beating a citizen as if he was the law, acting like he was above the law.

While beating up the old man, all the LTA officer was concerned with was that he would not mind losing his job. He probably knew that that was the worse he could get. He would not be arrested or charge in court for a crime, for beating an old man while on duty. Just like Jover Chew of Sim Lim fame, he knew the law and nothing would happen to him.

What would the ministers be saying? Vile, or good, acting beyond the call of duty? What would the police say? Got offence or no offence? Or shall the old Uber driver get a lawyer to sue the LTA officer or sue LTA, settle it in the court, no crime was committed. The old man did not seem to be badly hurt, just a lot of blood on his face, loosen tooth, so not serious, not a seizable offence.  Why is this LTA man not arrested? He was just relieved of his duty pending investigation.

The streets of Singapore used to be very safe, at least save from thugs and hoodlums. Now who is making the streets of Singapore unsafe?

Watching the video is so scary. As an old uncle myself, I must stay away from such uniform officers to be safe. Better don’t argue with them. When they say move, quickly move and say sorry for causing any inconvenience to them.

This is what my Singapore is turning into. It is safer to stay indoors with my computer.

School bus operators to raise fees next year

I thought I heard it over the news that school bus operators will raise their fees next year by 10% to 20%.  Just wonder what would be the reasons for the hike when petrol prices have gone down so much. Can it be rental, wages or COEs that are forcing them to hike the fees? Or are they paying their top management millions and needed the parents to pay for their high pay?

It was also reported that an operator serving a primary school in Jurong would be raising fees by 100% or more. And the reason, they lost some contracts and therefore must make up for the loss of revenue. Also the bus operator needs to make more trips for students attending ECAs.

It was also reported that the School Bus Association will be talking to this school bus operator. Maybe raising by 100% is too much. How about 90% or 80%? What about the reasons, losing other contracts can pass the cost to the parents?

My neighbourhood chicken rice stall closed down another stall in another food court. So now he is raising his chicken rice from $3 a plate to $5 to make up. This is an easy way to run a business.

Uniquely Singapore!

PS. Can the school terminate such unreasonable bus operator and engage another operator? I think cannot. I don’t think it even occur to them that they can do so.

Another Bloomberg China bashing article in the Today paper

I am just curious, why would a main media be so happy to publish stupid articles that are outright dismissive, mischievous and unfriendly to another sovereign state, and repeatedly doing so? What would such media seek to gain or what is the agenda of the media? Just a few day’s back I posted an article by a Singapore teacher lamenting that our young have been fed with an Anglophone diet and are looking at the world unconsciously through the western perspective.

There is an article in the Today paper by Bloomberg on 27 Nov with the title ‘China’s leaders lay foundation of new Silk Road’. It also presented boxes to show the mind boggling figures of 60 countries involved in 900 massive projects with an estimated value of $1.25 trillion. With so many countries willing to participate in this One Belt One Road project by China, would it be a good thing or bad thing? If bad, why would the leaders of 60 countries be interested in these projects and to spend the money and resources on them?

Of course it must be bad, according to the Bloomberg article. And the words used were most crude and inappropriate for a supposedly serious article. The fact that 60 countries saw great benefits in the OBOR is not material. The fact that China is willing to pour in ‘gush of money’ in risky and not well governed countries with ‘poorly conceived plans’ is immaterial. What is material to the author of the article is that it is bad, bad that China is throwing money to build the infrastructure, bad that these countries would now be closely binded to China, bad that China would be building better relations with these countries and having more influence on these countries.  It is also bad that it is in China’s interest to cut its transportation cost by building land roads and no longer needs to depend on the costly sea lanes for access to goods, raw material and markets.  The countries involved also have nothing to gain. Their leaders are stupid to be involved in the projects, and some will have to pay for them with their natural resources.

And worse, let me quote a Scott Kennedy, a director of the Project on Chinese Business and Political Economy at the Centre for Strategic and International Studies in Washington, ‘Any time the Chinese dangle yuan in the face of foreign officials, they kind of swoon.’ The Americans would never swoon in the face of money? It must be. And it is so bad that ‘All along the Silk Road they have opened their hearts to the Chinese.’ Really bad! They should be opening their hearts to the Americans by buying more American weapons for war.

What else is new?  The questions to ask, what would the leaders of these countries do with their natural resources, sleep on them? Who is there to buy them if not the Chinese, the Americans? And would it be good if the Chinese could also bring in their technology to build the infrastructures they needed to trade with the world?  Or should they be signing military alliances with the Americans, to allow the Americans to station troops in their countries to protect them in exchange for their natural resources and to compromise their independence?

These are poor countries, lack of technology and know how, lack of financing, and yes, the countries are not well organized or well run. Who would be willing to pour money into them and risk losing their investments? The Americans, with no strings attached?

What are the risks China is taking for pouring money and investments into these countries?  According to the report, ‘With many projects destined for economically weak countries with dubious governance, China’s money could get lost to corruption or be wasted in poorly conceived plans, … Nor is there guarantee that China’s cash will win it camaraderie….China’s infrastructure bonanza also presents dangers to its own economy.’

With all the negatives, would it be better for China and these countries not to be part of the infrastructure development? The countries can continue to keep their natural resources forever and China need not bother throwing money at them?

Or would it be better that, according to Derek Scissors, an AEI scholar, “The Chinese are going to work very hard – throw money at any and all problems – to make sure prized ‘belt and road’ projects all work out….That could turn China’s grand Silk Road dreams into an even grander disappointment.”

Now what is so bad when China is the only loser, throwing money at poor and badly governed countries, helped them to develop, to build their infrastructure and losing money and influence and friendship? And what is so bad to these countries that are going to get everything at the expense of the Chinese with the Chinese working extremely hard for them? The Chinese must be real stupid, only know how to make money in the trillions and only know how to throw them away to these poorly governed countries that the Americans are not interested in, in the mind of the Bloomberg author.