Terrorist Attacks!

This is almost an unstoppable threat that many countries are facing. And we have to face the grief with the tragic death of Lo Hwei Yen in Mumbai. She was there, wrong place and wrong time. Nothing more, nothing less. Terrorist threats can be any where, can be at home if we are not careful. It was a sad and unnecessary loss of a young bubbling girl, one of us. It is natural that all of us feel the pain and sorrow, from the President, PM, SM, DPM and everyone in the street, her loved ones, her relations and those who do not know her. Not often that we have to feel this way as a people. Our security forces can do all they could, but don't expect them to provide a net that can keep the terrorists out. They will slip in if they want to. Just don't give them a reason. Don't stir the hornets' nest. 10 gun totting terrorists in Orchard Road or Shenton way will kill more than the 200 in Mumbai for sure. Let's keep vigilant and pray that it shall not happen here. And pay some remorse to those young men who died in NS in the call of duty to keep this place a safer place. They were not in the wrong place and the wrong time. They were there specifically to serve the country. And many have died. And the tragedies of their premature deaths were never less than dying in Mumbai. Their parents lost their sons, some, only sons, for the country. We need a little outpouring of grief the next time another young man dies in the course of duty for the country.

Go home early to make babies

Last week I read that Japan is encouraging its young to go home early to make more babies. The same justification as in many countries, an older and dying population needs renewal. You need two young to support an old. So the world is all clamouring for more babies with more monetary incentives. Is this a good thing? The equation, if fully practised, will lead to a population explosion. And this mother earth is already gasping for breath to keep up with sustaining a 6b population. They are expecting it to go to 8b in the near future. There are physical stress, resource stress, climatic stress and political stress facing civilisation and mother earth. Instead of a trimming exercise which nature does every now and then to shed some weight, we are trying to put on more. The ingenuity of humankind will find its way to survive with ever growing population, or it shall perish. When will human kind admit that mother earth can just support that much lives and it is time to stop adding on? Why the rambling, let's go for the 6m or 10m. Things will go work out naturally.

Gambling with your only asset

Gambling or trading with your home or gambling with your only asset or flat, private or HDB. Not many are house owners. Does this statement tickle anyone? Many of us just have a flat that we called home. This is all we got, the most expensive asset. Shall we be trading this every now and then? At the way we buy and sell our flats, and the way prices fluctuate up and down, we could be buying and selling the same flat over and over again. And if we are lucky, we may end up with some extra cash, or lose some in most cases as the transaction cost is not low. So, shall heartlanders be gambling with their only asset? Or is it a good idea for this asset to keep running up in value? Should be good isn't it, that a flat one bought 20 or 30 years ago is not worth 10 or 20 times its value. Time to cash out and downgrade, and make a tidy sum. The question is whether this process is worth it, downgrading for a little more pocket money. Often the downgrading is not meaningful as the price difference between a 5rm and 4rm or 4rm and 3rm is so small after subtracting transaction cost and the normal appreciation of the value of money invested. The small gain is an illusion. To be meaningful, the downgrade must be fierce, 5rm to 3rm or rental flat, or private to a smaller HDB flat. The other fallacy to this ever increasing price paradox is that property prices should go up in leaps and bounds over the years. Using the past statistics, a 5 rm flat that was priced at $27,500 in the early 70s is not priced at $500K, nearly 20 times in monetary gain. If this is to hold true into the future, a 4rm flat selling at $300k today must fetch $6m into 30 years time. How much will an average Singaporean's income be for him to be able to afford this palace in the sky? Would it be better if this only asset be allowed to appreciate in a slower pace over time without it becoming a betting instrument, swinging wildly, and owners sometimes happy, sometimes angry. For the young, always angry because it is like chasing a fleeting dream. Is it likely that our average young executive or a supervisor will be getting a monthly salary of $30k or $50k? Possible, and our currency will be no different from the infamous banana money. I think many countries are in such a state at the moment. We can be one too.

Act now before the next meltdown

This is the heading of an article by Paul Krugman in the New York Times and reprinted in the ST today. His primary concern is the failure to look at the serious problem when all the early signs were there which led to this financial meltdown. America pulled throw several near disasters, at the brink of collapses, but instead of understanding how they got so close to failures, gave themselves all the encouraging and triumphant pats on their backs, and pronounced how clever they were to avoid the falls. The lessons to be learn is to sit back and take a quick look at our own situation and examine if we are sliding towards the edge. And I think we are. The psyche and culture of greed and instant wealth will burst our bottoms before we know it or see it coming. We are in a state of delusion and intoxicated in our past successes. We have triumphed over all obstacles and we think we can continue to bullshit our way through. The thing is that if we are hit by a version of the American financial tsunami, I don't think we can absorb the blow. We would have to sell everything, including father and mother, to get back on our feet. Where are the fault lines? The stock market is one. You cannot build a market that is dependent solely of foreign funds and support to survive. Trying to be a mountain when we are actually an anthill is not only being ambitious, but maniacal. For the moment our market still looks like it is a big market with huge volume of trades executed daily. In reality it is like a hologram. Fictitious trading, or left hand to right hand, is the reason for the high volume. Then there are the rules and mechanisms that do not provide a level playing field for all players have distorted the meaning and viability of the stock market. It is waiting to collapse. Wait till the funds pull out. We will be left with a gaping hole to fill. The high property prices, particularly in the private sector, which also affect the prices of public housing. When the citizens have to pay a life time ransom for a place to stay is perceived as good and healthy, it tells a lot about the faulty mindsets of supposedly brilliant people. The high cost of properties is unsustainable in the long run as it will require a high income to support the prices. In the case of private properties, the few local super rich have bought whatever they could and are waiting for some suckers to offload from them at a profit. But the locals from public housing would barely be able to do it, except for a very few. So open the flood gate for foreign suckers to come in. And that is good. Sell our limited land to foreigners with the dole. Keep building more and more and at ever higher prices. The music will stop one day. The corollary to this madness is the rentals of shops, houses and factories. Just keep driving them up and the landlords will laugh all the way to the bank. One Tay Boon Yong wrote to the ST this morning complaining that his landlord, the HDB, has just informed him that his rental will go up by 20% in January 09. I presume someone will say this is inevitable, imported inflation, or HDB is now a private organisation and must answer to its shareholders, or profit is good. I am so tempted to use the 4 letter word here. Quick profit, by sheer market forces of supply and demand, is the easiest way to make money. The next easiest is monopoly or by edict. In the tiny world of ours, it is so easy to corner the market and put undue pressure to create the forces that favour high prices of everything. Even public transportation will be a victim of such a mentality. Hospitals, education, and anything, can be manipulated by quoting market mechanism or forces as an excuse to raise cost and price. If we keep going down this road unchecked, a few silly buggers who think that they are smart enough and fortune will smile on them forever, will think this is the best way to go. But the majority, which will also count these silly smart asses, will not be able to cope in the long haul. Many will have to struggle all the way while the few smart asses will have their turn to cry when fortune slams the door in their faces. The ancient wisdoms of thrift, lower cost, steady and sustainable growth in small increments are not called wisdoms for nothing.

Myth 197 - No freedom of expression

Recently there seems to be a lot of complaints that Singapore is very uptight and lack of freedom of expression. People even got worried about what kind of T shirts they are wearing. Where is the sense of humour? Huh, what's humour? I think it is all a mis representation. I have all the freedom of expression that I need here, writing my forum/blog. I can even call Bush an idiot. No one has ever said that I can't write such stuff. We are very free actually, and very mature as a people.

Quibbling over taxi charges

There were two letters in the ST forum on the various charges that commuters need to pay for taking taxis. With the economic situations getting bad, many are trying to find ways to save a few cents if they could. The two letters made suggestions to the taxi operators to waive these surcharges or that fees to make it less expensive. Strange that these people who can afford to enjoy taking taxis will be bothered with these small charges. I cannot afford to take taxis so I choose to take MRTs. Much cheaper and can save dollars instead of cents. I am sure many of you will agree with me that if cannot afford, one should not take taxis. If want to take taxis, then be prepared to pay the price. If everyone can afford to take taxis, then the roads will be congested again and more ERPs will be up. Let the price mechanism determines who shall have a free ride down the expressways, who shall ride on taxis, who shall take MRT and buses, and who shall ride bicycles or walk. There is a price for everything.

I am convinced

I was not too convinced even with the regular gaffes coming from George Bush that the democratic process of electing leaders is not workable. Now we are seeing another Bush in Taro Aso, making as many gaffes as Bush in a single day. Then in Europe you have Sarkozy that is not cut out to be a President but more a socialite. The other aspects of failed democracies are the less than able leaders being elected for queer reasons all over the world. And democracy, without power and good leaders, will fail badly like what we are seeing in Thailand today. We must thank ourselves for the great political system that we have in throwing the best leaders from a land that is lack of talents. I am now convinced that we should have a one party system, and do away with elections forever. Oh, election within a one party system should still take place, not the multi party democratic election. In that way we can ensure that only the best leaders are kept in power to help run the country for as long as they can. Our model will be the model for the rest of the world to emulate and to reject at their own risk.

A prick on the conscience

Someone just sms me of a news clip saying that ex senior executives of UBS have returned US$58.2m in bonuses and wages to the bank. After posting the heading, I kind of like the punt. What a prick!

How much discount for Pinnacles?

I went to the HDB website to troll for some figures on the much hyped discount given to Pinnacles at Duxton. There were some comparative figures on the average price of a resale flat in the same location. The average price of 4rm resale flats was $508k while the prices of 4rm Pinnacle flats are from $457k to $555k. Taking the average of the two, the average price of 4rm Pinnacle flats is $506k. If there is any subsidy, it is only $2k! (Note: the numbers were taken from HDB's site) Hey, can you call this a subsidy? I thought I read somewhere that the subsidy is about 20% off market prices, which means that if average market price is $508k, then average 4rm Pinnacle flats should be $407k. Now where is the subsidy that we were told? What happens, and it is going to happen, is that market prices are sure to fall given the poor economy. Would the new buyers of Pinnacles feel like instant suckers? MPs please ask this question in Parliament. And if Parliament is in recess, please email to the minister in charge for an answer. Can't believe no one pick this up.

Town Council Funds

After going through Teo Ho Pin's explanation on the investment of Town Council Funds, I got the impression that the investment objective is just to invest for better returns. But the returns will not be translated to direct benefits to the residents. It is just investment for investment's sake. Thought any gains should be returned to the residents in some ways like lower S&C charges. The other point that came through is that the investment is for long term and gains or losses do not mean anything or have no impact on the residents. They will not affect the residents in anyway. Really? Another point I thought Teo Ho Pin should address is the Sinking Fund. How much is enough? The NKF's 20 year reserves came to mind. There must be a limit on how much should be set aside and when enough, the burden of payment by the residents could be proportionately reduced. What we are hearing is that residents shall keep paying regardless of how much is already in the reserve. Collection of public money must be capped at some point. It must not be unlimited and unconditional.

Money In My Mind

Money In My Mind What I built, the people called homes With loving care, all very affordable Big or small, I have them all For the money in your drawer I move people by the loads On the streets, high above and down below Ordinary is not good enough World class or nothing less When you're unwell, no worry We look after you, in fine luxury Fame physicians there will be You, our treasure, the best is to be Your money we will keep Safe and guaranteed a life time, (have a good sleep) Your money will grow, in great numbers, (in times to come) Be comforted, plenty will be left when the end has come. Chorus: I’m not for glory I’m not for fame I’m not for anything Only money in my mind The above is copyrighted by redbean

Double cuts for top civil servants and ministers

Many of you are just looking at the 19% pay cut for ministers, top civil servants and the President. Actually the cut is deeper and much more than reported. You must remember that they were underpaid according to the benchmark and are due for a third adjustment in January next year. To take a pay cut of 19% from their current salary is thus short changing them. Technically, they should get their adjustment in January first to put their salary to their rightful place. Then the 19% cut can come in. That will be only fair. What's happening is that they did not get what they should get and got a cut instead. Then there is Hsien Loong who has pledged to donate his last pay rise to a charity. Now he will be worst off than the rest. He did not benefitted from the last increase like everyone else, and still kena cut as well. Someone did not do the sums right this time.

Myth 196 - Toxic or not Toxic

The minibond and high notes case is still unsolved and the general impression is that they are toxic, or this is what they are called. But the only people using this term are the critiques and those badly affected by them. The media conveniently used the term as a reflection of the general sentiment. But are they toxic? Till today, the creators and issuers of these products have never admitted that they are toxic and not been charged. Selling toxic products must be a criminal act as there must be more dangerous than just drug abuses And the financial institutions selling them too have never admit this new status. Neither have the regulators. The official view, if I am not mistaken, is that they are just high risk financial products offering a relatively higher return. They are perfectly legitimate financial products that can be marketed to the investors. And we are hearing nuances from financial institutions that new products of similar nature may still be offered some time in the future. So, are these products toxic? Officially and legally theyare not. Or else all the parties would have been dragged to the courts for a criminal act.

A home song - 7

The legend of Sago Lane She’s the legend of Sago Lane A haunting figure of the past Before the sunrise she was there Heaving and pushing her towering wares She had no recollection of her years Did not remember anyone that was dear What she did today, tomorrow and thru the years She did the same everyday, and every year She could be a good looker for all you know The darling daughter of a mother, we were told Or the pride of some dashing suitors already past Never would she know how things had gathered dust Her stature had diminished with the ravages of time Standing with a stiff hunch, she was half her height With cardboards stacked high in her cart Stretching her neck, she could see not much ahead Chorus In a city without tears Where the wealthy indulged all thru the years Parties and celebrations in glittering lights There’s another world in the city, under the amber glow of backstreet lights. The above is copyrighted by redbean

The unsustainable high inflation road

High property prices are good. High salaries are good. So we continue to raise the cost of properties, rentals and of course salaries, and also the cost of everything. The cycle is unsustainable as the payers cannot afford to keep paying. The salary portion of the equation cannot keep going up. Now that salary is coming down, would high prices come down? Would the cost of living come down, prices of property and rentals, will they come down? Or shall they be propped up to give the impression of wealth? The artificially high prices of properties, by fidgeting with the supply of land cannot be sustained for long. The truth will break it apart. The American model of printing money and living on borrowed money is breaking down. Living from future income is only passing the buck. But the music will stop some time in the future. The music has stopped and the high cost model, when high cost is deemed as high quality, and good, is going to crumble. Are we still living in the beliefs that salaries can go up and up, and prices can go up and up? The higher the better?

Myth 195 - The American Myth

Singapore is, and still is, the ideal convert of the Great American Dream. Everything American is good, except the bi party system. We adore all the big names, the great talents and the American melting pot. We plugged into America more than just to the world. We aped almost in entirety, the American financial system and their greed. And we are the first to pay the price of our childish phase of growing up. Big names, tested names and great talents cannot be wrong. Just pay them as much as they asked for, for they are worth every cent of it. We have seen many American myths in the past that went up in smokes. But those were totally ignored. Now this final disclosure of the colossal mismanagement and cheating by the financial whiz kids and their dirty dealings that cheated a whole nation and the world being opened up for all to see. Real talents would not have dug a hole that is so big to bury America and the world. Million dollar and billion dollar talents are everywhere on the streets of New York. Are we eagerly waiting to grab them to create our own myth? We have been conned by the juicy big apples of big names like Merrill Lynch, Citibank, Goldman Sach, Morgan Stanley etc etc. I too thought it was a great idea to put a stake in these great banks. I too was conned by this American Myth. Shall we continue to go along as a bright eye kid and saying yes to anything America? Pay big money for big talents, buy up big American banks and duplicate American financial systems and practices without a second thought to their relevance and extravagance?

A trial balloon or a genuine intent

This talk of a single party political system, is it real or just a trial balloon? If it is real, if the ruling party thinks that this is the way to go, I think we really need a referendum on this. The political system of the country must be decided by the people, not by a small group of wise men who thought they are wise enough to decide the future of the country and the lives of the people. From the way TOM is generating more news that favours such a system, it gives the impression that there are people who seriously believe in it and wanted to change it. And the sleeping opposition parties and all the learned men in our midst are also sleeping. Would there be any learned man of some stature who dares to speak out on this foolish idea?

A home song - 6

Eternal Child For 2000 years I have no intent of returning The ethereal world was all peace and harmony All sound and light and no fury Nothing to stress out, nothing to fear Now I am told and on my way To the earthly place I bear no memory I descend through the layers of time and space The scents of matter bring me to my sense Oh mother earth, here I come Your eternal child of another time Bless me with all your loving kindness For a life within your arms I’m now hovering on the ceiling Staring at the lights I’ve long not seen Bright lights that blind, brightness of a different kind The woman lying there, shall bear me a new beginning Why shall there be so much agony, and pain Even before I set foot on earth again I hear her cry, my spirit shivers and wants to die This is not the place for me to start again Oh mother earth, don’t wait for me Your eternal child of another time I can’t bear to know what lies ahead for me I shall miss this reunion and return to where I rather be The above is copyrighted by redbean

Tan Kin Lian offers a great opportunity

The declared intent of Tan Kin Lian to enter the political arena offers a great opportunity for our political system to progress to the next level of maturity, a multiparty system with equally good men and women from both sides. If another 20 people of Tan Kin Lian's calibre will to step forward, then we will see more genuine representation of the people's interest at the national level. Politics will could or should become less abrasive but more sophisticated, a big departure from the gutter politics that we see today. The future of Singapore lies in its ability to evolve and adapt from the best political systems that are available. Under the present mindset of I am the only solution, the thinking is so skewed to the extent that people could not see any further than two fingers ahead of them. We are hearing views that either we have a one party or multi party and nothing else. We are what we are today because of our adaptation to what is available. We should seek to embrace the best of different systems as all have their dangers and flaws. A one party system is as treacherous as a multi party system. Flirting with the thought of a one party system at this point of our political development can only come from a inflexible mind. We are a multi party system but with a strong leadership to see things through, without going too far like an authoritarian state. If we become a one party state, things may not be what it is like today. It is scary that people are denouncing the merits of a multi party system wholesale and the choice is either or. Quite an extremist and naive approach in my view.

$42b in reserves

When I read this in the old media, I was thinking that this must be gov'ts money. Actually it is not. It is the people's money in the Medisave. Singaporeans have $40b in their savings parked in the Medisave. Now why is this called 'reserves?' Your money, my money, my money your money? Is it not wrong for people to understand that when we use the word 'reserves' we are referring to the general public or govt's money in the national reserves. Why are the people's money in the CPF or Medisave referred to as 'reserves' and not the people's savings? Ok, it did mentioned that it was both. Here is a clip of the press statement. SINGAPORE: Health Minister Khaw Boon Wan said healthcare costs will not be a problem during this recession. Speaking at the NHC Time Capsule event on Saturday, he said most Singaporeans have sufficient savings in their Medisave accounts, and hospitals will be more generous with Medifund applications during these hard times. The total reserves for healthcare stands at S$42 billion, 14 times the annual health expenditure. S$40 billion is parked in citizens' Medisave and it is growing at S$2 billion a year with contributions from workers.... Copied from CNA.

Can you believe it?

Just a few months, and all the iconic institutions of the USA are bankrupt? From investment banks, financial institutions, airlines and the three auto giants, are collapsing? What else is going down? All the hype about AAA ratings of American institutions seemed so real and now a fairy tale. Institutions that are sound, and of that size, cannot be wiped out overnight. The rot must have started long ago. The only problem is that the rot was hidden, concealed, and outside parties are not allowed to know. In fact all the thieves were paying themselves ridiculous salaries and perks and churning out glorious figures of growth and profits. Where is the transparency, accountability and responsibility? Big names never fail, very reliable, proven with good track records. And managed by the best talents money can find.

It’s my money - 5

Got my pay check finally Only the numbers look funny Cause they keep something for me It’s for your own good, be happy The day came to get my money back Rules change, it will be ten years late Or when I’m lying in a hospital bed It’s good for you, be happy Then when I am 85, and I’m still alive My body’s weak, I can do no vice Then a mail came, my savings fine They think I can live till a hundred and five Chorus Oh hear my cry It’s my money It’s my money It’s my money But they don’t reply The above is copyrighted by redbean

HDB lost $500m

I remember a parliamentary session when it was told that HDB lost $500m in one year or something like that, and the reason was the sale of flats below cost. Someone please correct me if the number of $500m was wrong. What is puzzling to me is that if you are running a business, with the best talents, and you decide on the cost of land, the price you are paying the contractors, and you also decide the price you are selling to the customers, and you lose money, $500m! What shall I say? Must be a lot of subsidies at cost. And who decides what is the cost?

The power of sales pitch

We have seen how powerful the sales people were in the current financial crisis. They have made thousands of people part with their money to buy toxic financial products. Isn't it frightening, and a case of irresponsibility? For a product to be labelled and widely acknowledged as being 'toxic' and that respectable people still thinking that there is nothing wrong with them, and to think of peddling more to the people in the future, my god, we need to change the meaning of the word toxic. For all I know, toxic is even more dangerous than drugs, and drugs are banned. The power of persuasion and convincing the masses to do things against their interests is phenomenal and deadly. Imagine telling the people that it is good to hang a noose around their neck? Or imagine selling them a new bogus religion? Reading the media, I am fully convinced that Singaporeans are easily duded to believe in anything, even if you take their money away and give them a fictitious reason, they will go along. Now you can tell them that building an abattoir for their eventual slaughter, as long as you tell them that it is good for them, they will just go along. Can they really think?

God has the final say

We need a good political system to ensure our viability. Many gods have spoken on what is the best system for us to go forward. Demigods also have spoken of their ideal systems. All the systems on the table look quite similar, all very godly. Do the people have any say as to which system is good for them? Who shall decide what is good and bad for the people? Or put it in another way, shall we let the gods and demigods decide on a system which is good for the gods and demigods, and maybe good for the people also? Or shall the people say, look, look, we are also owners of this place and we want to decide for ourselves what is good for us. We don’t need to buy your godly ideas. Ultimately who shall have the final say for their own well beings and the future of this country? The gods, demigods or the beans?

A home song - 4

Mas, Mas Selamat A warm tropical night, along the western shore A flickering light, and the sound of oar The boat hit sand, and they waded ashore Three shadows wavering on glistening water, nothing more For three years, they kept him, behind closed doors No one sees him, only his plans, To blow up planes landing in Changi Our gateway to the world, were known to all Food were plenty, they feasted him But wines and songs, were not for him They adore him, what a fellow When he’s confined, living in his own shadow The guards came down, out of the window He hit, toilet rolls on the ground Over the fences he flew, stealthily like a cuckoo His freedom run was more a walk, just for fun Chorus: Where are you Mas, Mas Selamat Tell us please We need a little peace Spare us your plans and let us live in one piece. The above is copyrighted by redbean

Tan Kin Lian for President

The Sunday Times published an interview with Tan Kin Lian and his aspiration to run for the elected President or a MP. The startling point is that he is going to run as an opposition candidate, giving reasons that he did not agree with the ruling party which he was once a member. Tan Kin Lian has all the prerequisites of a professional, and he fits the mold of what the people have come to expect of a MP. Though his wife expressed fear of a political backlash, Tan Kin Lian is still keen to push on if the people give him some endorsement of support. We will need more able people like Tan Kin Lian to step forward, maybe form a new party of like minded people and stand in the next GE. A party with creditable professionals will stand a very good chance of taking on the ruling party. There are many able people out there who are as good if not better and it is about time that they do something for the people and country. The country needs them, the country needs new blood and new direction, new philosophy and policies, and a new set of moral principles that are people oriented, for the well being of the people. The seed of a new political era has been planted and a new leader is emerging. The good men and women should rally behind him to provide a decent and respectable alternative to the people. There must be many talents out there who are ready to serve for the interest of the people.

Minibonds and High Notes in simplified terms

ST correspondent Lorna Tan did a simplified version of a summary note that is easy to understand to the investors. She used a copy of the DBS High Notes 5 prospectus and gave her own inputs which I find very comprehensive, at least to a layperson like me. The key features of her take are: 1. It explains that the investor's money will be used to buy a basket of securities. This is then used as a collateral for a bet. 2. The bet is on 7 selected financial institution and one country, that should any one of them got into financial trouble and becomes 'bankrupt', the investor will lose all his investment. 3. The 7 entities have nothing to do with the money invested. 4. The product is thus not suitable for people who cannot afford to lose their principal sum and who need the money over the next 5 1/2 years. I would like to make a few amendments to her take. 1. Change the title of the Notes to Toto High Notes 7 2. Allow the bettor to choose 7 entities from a list provided 3. Allow the bettor to pick 1 country from a list of countries 4. The product should be sold at Toto booths 5. Financial institutions should not be allowed to indulge in such gaming products. From the nature of the products it looks to me more like betting than a financial product. And it is much easier to run such a betting scheme than the S League. So much cheaper.

My hat's off to the party

If anyone or any party can convince well educated, highly educated people to believe in what they said, it must be a very capable party, or least in its ability to win converts to its cause. The idea of a one party ruling system, akin to a benevolent dictatorship, is like convincing the livestock to walk into an abattoir. A walk to no return. I still cannot believe that this is possible, but to hear them sing praises of a one party system, they appear real, fully bought the idea, hook, line and sinker. I must say, great job, well done. The other way to look at it is that livestock are meant for the slaughter house. They can't differentiate between that and a home. They are bred just for that, unthinking or thinking, that that is the only way to go. You see how happy the sheep in the field and the herd of cattle grazing, or how the chicken enjoy themselves when the farmer appears with their feast. They won't trade that kind of life for anything else. It is very comfortable and assuring.

A home song - 3

45 years and more The crowd came, hungry and lost Pleading that I be their boss I led, they follow, no question ask, not a single doubt For they trust, I the boss For the hungry, they I fed For the jobless, work I gave The uneducated, schools I built, an education they got Most of it all, it's dignity they had My hair grows white, my hearing fails My eyes weaken, so my sight No longer do I think, nor see the things I see Never will I need to hide Where are they who came to fight Where are they who crumbled, left in flight They made me mighty as they humbled themselves And trembled at my sight Chorus For 45 years, I'll said it all Things need done, I'll done it all Take me on, I'll beaten them all 45 years on, I am waiting for more The above is copyrighted by redbean

Tripartism taken a body blow

Tripartism is the cornerstone of our labour management relation. Its existence and being part of the institution of Singapore Inc have been going on for too long and maybe forgotten. Union was claiming that they got only 3 days notice of a big retrenchment. And I wonder how many days did the MOM got. MOM had to rush out a new set of guidelines on what a corporation should do before drawing out the butcher knife. And the Union is crying foul. The rhetoric is getting stronger by the day. Last night we heard Swee Say talking about cooperation to confrontation if management took the Union for granted. How could our labour management relation suddenly took a plunge? Someone sleeping or someone thought that they are also the govt or the Union was not consequential? Maybe it is forgiveable if decisions were made by FTs who are new to our unique brand of tripartism. Incidently, were locals let go at the expense of retaining FTs? There was this motherhood statement that the foreigners will be the first to go and the jobs of the locals will be protected. How many were locals and how many were foreigners that were retrenched?

Is it complacency or stupidity, or simply too clever?

The last few days more views were out in the old media about the merits of a one party political system. Two writers, Dr Tan Wu Meng, the Organising Secretary of Young PAP and Tim Mou Hui put their views on the merits of a one party system in the ST today and pointed out the shortfalls of a two party system as mentioned in Gilbert Goh's letter. Against all conventional wisdom, or it is their new wisdom, that a one party system is the way to go. They have thrown away all caution of how treacherous is this path if we are not careful. It is a path of no return. Singaporeans have already flirted with the danger of a one party rule with more than 2/3 majority in Parliament all these years. This is no small matter as it means that the majority party can do whatever they like. They are given a blank cheque to even change the constitution to their likings. In a worst case scenario, a rogue govt can simply amend the constitution and change a democracy into a dictatorship. Singapore is lucky that we have a kind of benevolent dictatorship as coined by Chua Mui Hoong, and survives, prospers and progresses over the last 45 years. In different hands, we will be in dip shit. Definitely this is no justification that things will be the same going forward. Should Singapore really go all out to embrace a single party system or even a dictatorship? I try to appreciate the reasoning of this new wisdom. But my instinct and old wisdom say this is highly dangerous. It is thoughtless and senseless. And to think that thinking people even clamour for such an eventuality is really frightening.

It could be worst

The ungrateful Singaporeans are complaining again. This time for the loss of a miniscule $18m from Town Council fund, which is so small compares to the $2 billion it has hoarded. And if the $2b is not enough, they could easily raise the conservancy charges and build the reserve to last 20 years for a rainy day. Singaporeans did not realise that this is the best team handling their money. It could be worst, and all the money could have been gone if a lesser team was in charge. Please count your blessings and be grateful, and thankful. Your money is in good hands.

A home song

I was in a karaoke room with some friends and I could hear the songs that they belted out with gustos after a few drinks. Hotel California, Bridge Over Trouble Water, My Way, Heartbreak Hotel, Leaving on a Jet Plane, I don't want to talk about it, etc etc. All the all time favourites were foreign and bears no relation to what we are or to home. Instantly many song titles flashed through my mind which will make great home songs for Singaporeans. Songs that we can sign and share with emotions. Let me share some of them here. Money in My Mind More Good Years Let's Move On 45 years and more I punch an MP No charity at home Say Yes to more leeways It's only peanuts Help is on the way Highway to Paradise Twilight in golden years There were many more which I were unable to recall at the moment. I shall try to put some lyrics to these songs if I can find the inspirations some day.

A world class city of no talents

More are singing the song of no talents in paradise and the soundness of having only a single political party to rule the country. How could there be no talent in a world class city when hundreds of straight As students were sent overseas to Ivy League universities for at least the last 20 years? At 250 a year, we should be having at least 5000 of the brightest living among us. Or are they fake? Their straight As were fake, their first class honours were fake? We are crying that we can only find 10 or 20 of them to serve in the govt and the rest were not good enough or not willing to serve. This is a myth that the simple minded Singaporeans are fed and expected to believe. For every first class doctor or lawyer or engineer in the govt, there will be at least 10 or 50 of them out there with as good a qualification. How can we dismiss the rest as no talent? Actually we are all talking bull. Political talent is not equated with professional talent in other fields. Just because someone is an excellent doctor or lawyer or engineer, does not make the person a great politician or leader of a country. People are gifted with different talents for different things. It is more likely that when one is gifted in one area, it is unlikely that he is equally gifted in other areas, accepted that this is not always the case. Neither is it the case the other way round. Do not think or believe that an excellent doctor, lawyer or engineer will make an excellent politician. This is a fallacy that must not be sold to the masses. We have actually seen the reverse as a bigger truth. Please stop singing the one party song and think. What we need are leaders and good men with a heart for the common people. No need for first class doctors or lawyers or engineers when the heart is not in the right place.

One day, news will be written this way

Rupert Murdoch has warned against the role journalists and old media have been conducting themselves. Soon they will run out of readership if they think they are still demigods. This is what Murdoch said, "It used to be that a handful of editors could decide what was news--and what was not. They acted as sort of demigods. If they ran a story, it became news. If they ignored an event, it never happened," Murdoch said. "Today, editors are losing this power. The Internet, for example, provides access to thousands of new sources that cover things an editor might ignore. And if you aren't satisfied with that, you can start up your own blog, and cover and comment on the news yourself. Journalists like to think of themselves as watchdogs, but they haven't always responded well when the public calls them to account." We shall write our own news and in the way and style we deem fit. We can shout and scream and kpkb. The old media cannot beat us on these.

Myth 194 - The fallen myths

There are many myths that have fallen flat on the ground. We used to be told that if people invest their money in stocks, in the long run they will be better off. This tooth has been proven beyond any doubt, that this is not the case. Many have lost their CPF savings when they put their money in stocks. So the next truth is to not to put money in stocks but in unit trusts to spread the risk. The result is the same. Kaput. Ok, try another option. Put your money with the experts. Let the fund managers handle your money and invest for you. What a wise recommendation. Another kaput. Trust only the big and proven funds. The bigger the better. We all know where it will all end up. The final option, keep your money in CPF. Very safe. Guaranteed. This one will surely not become a myth.

Downgrade if you cannot afford

This familiar song has been sung with increasing frequency and the singers are getting much more comfortable singing it. It sounded to me as a cocky and arrogant tune. If you cannot afford 4rm, go for 3rm or 2 rm. And if you are so desperate, don't worry, more rental flats will be built just for you losers. What happens to the more good years and Swiss standard of living? Why are we spiralling down instead of being better off? The losers have been 'encouraged' or dismissively told to live within their means. That is their lot, that is their station in life. But should that be the way to go? Can we lower the prices of flats? We have this game of downgrading. On the other hand there is another game of pushing up the prices of properties. Land sale will be withheld if they cannot fetch high prices to protect prices of properties from falling. Very good reason. Property developers, private or public, privatised public developers, will only have one choice, raise property prices as the cost of land can never come down, and so were other costs. It is forgiveable and unstandable for commercial developers to want to max their profits. But in so doing, they only facilitate the privatised public developers to raise their prices. No need to look at cost. Just look at market prices. Market price up, just up the price accordingly. Then tell the losers to downgrade their expectations. When one side is told to downgrade and the other is running away with higher prices, where will this lead to? Will it snap? Can we ask people who are earning millions to downgrade their lifestyle if they cannot keep up with those earning more than them? Or shall we give in to their demands and give them more money to spend? And mind you, giving money to millionaires is no small matter. They will not accept anything less than a peanut.

Let’s have a referendum

We have 45 years of success under the able leadership of the ruling party. I think people will have a hard time trying to disagree with this truth. We are here today because of the unique political system that we have developed and copyrighted. And it is a system that is not easily replicated. It is a system based on able and benevolent leadership, tough paternalistic and incorruptible leaders. What is the referendum all about? We need to give the people a choice to choose a political system they want. We have a tested system that the people have lived in and proud of. It has been proven beyond any doubt, comparing to the countries around the world, that our system delivers. This one party dominance system must be one of the two choices to be offered to the people. The next is a benevolent dictatorship, a slight variance from the current system. The conditions for its success are quite similar from the one party dominance system except that you can do away with elections. Let the benevolent dictatorship rule and make everyone rich and happy. Both may not be near to the ideal western model of democracy, but both work efficiently to provide the people with the best leaders and a high standard of living. There is no need to blindly follow the West to want a western democracy. What the people should decide is what is good for them. Let the people choose in a referendum, for a one party dominance govt or a benevolent dictatorship. The people cannot claim that there is no choice. Just choose one.

Why no opposition MPs at Hong Lim?

There have been many criticisms on the no show of opposition as well as ruling party MPs at Hong Lim. Let me try to address the opposition side of the unhappiness. Many would have seen this as a golden opportunity for opposition MPs to dig in and side with the people, and score political points. It is a straight forward expectation of how things should be. But look at it closely for a moment. What could the presence of opposition MPs help the distressed investors? I think it will make things worst. They would have politicize the issues and make life more miserable for the investors. By not taking the sides of the investors, the ground is left open for the govt to step in to do the right thing. The govt need not be seen fighting with the opposition for credit or becoming defensive with their presence. And the issues can be handled in a less complicated and proper way. Tan Kin Lian’s presence should not pose too much of a problem as he is just an individual and does not belong to any political party. Is my explanation logical?

Lack of political talents

I wonder how many of you believe that there is a lack of political talents in paradise. I, for one, agree that there is really a lack of political talents. Look at everyone around, you can hardly claim that they are talents. This is the sad state of affair in paradise. Everyone is excellent in making big bucks, but being a political talent there are so few in between. Oh, please disagree with me if you think you are better than whatever talents there are out there. Don't feel slighted. We just got enough for one political party. And that is a fact. Oh dear, those not in the ruling party are going to be angry with me. I am just telling the truth. If they are good enough, they should have won the election and form a new govt. But they have lost to more able opponents, more talented than them. Anyone want to prove me wrong?

Enshrining a one party system

Shall we enshrine our one party political system into our constitution? There are views that a two party adversarial system is not good for us. According to who and who shall determine what is good and bad for us? Maybe I should ask who is the 'us'? And there is also this view that we don't have enough talents to run two good political parties. Really, we are so short of political talents? In the artificiality of our existing system, politicians can be created by drawing them out from a hat. And you can draw out as many as you want. There cannot be any shortage of political talents using this method. If our political system should only have one party, why waste the time of having so many political party registered? Or can we have a strong Workers Party or a New party with strong and able candidates? Or one party dominance system means only THE PARTY and nothing else can do? Definitely a one party system does not mean a Workers Party govt or any party govt.

Help is along the way

Should we be frightened by it again? We have experienced many helps in the past that we wonder whether we are better off with or without the help. Like it or not, the people will be getting help. We get help in good times and in bad times. And help reaches everyone other than those that are really rich. So should Singaporeans be looking forward for more help? In the current state of the economy, Singaporeans have no choice but to look for help. The richest country in Asia next to Japan and its people are in trouble and waiting for help. This time it will take more than a Tan Kin Lian to help them. What if help does not come? Can we imagine how paradise will become?

One Pinnacle crumbled, one more to come

The announcement of Pinnacle Notes 9 and 10 becoming worthless is another bad news to hit the Singaporean investors. Another 700 investors are hit this time, adding to the earlier lists involving minibonds and high notes and low notes. These are events that have come to fruition and now it is only about picking up the pieces. I am looking at another Pinnacle that may hit the innocent Singaporeans. This one is waiting to happen and can still be avoided. I am referring to the Pinnacle at Duxton. The HDB has happily added another $200k to the prices of the flats on offer in the second round. It claims that it is justifiable as the market prices of similar flats in the same area have gone up much higher. Actually it could be more than $200k if not of the subsidies against market prices. Now, given the recession, people losing jobs, losing money in investments, property prices coming down, there is a high possibility that if these new buyers are going to pay $200k more, they could find themselves paying much more before they move in should the market turn down. So there will be another batch of eager buyers going in with their eyes wide open. Should that happen, it probably may not, Tan Kin Lian would be very busy again. And Hong Lim Park will see more activities and visitors, this time from new home buyers. Would this Pinnacle crumble like the Pinnacle Notes 9 and 10? The flats would not become worthless for sure. But if the price drop is substantial, the new flat owners would not be too happy either.

The ‘lepers’ of Paradise

Were they abandoned? They were frightened, lost, in despair and crying for help. But their voice was lost in the din of heavy traffic and the vibrancy of a city in a hurry. No one heard them. For many who heard, the replies were rather dismissive. They were greedy. They knew what they were in for and they should walk away without an arm or a leg. That is the rule of the game. In their hour of desperation came a shining light. He came not sitting on a golden chariot. Neither did he have any trappings of authority or marks of approval. He stood on the mount in Hong Lim. He spoke and they listened. And they followed him. A leader has risen in adversity. A bond has been built between the lost sheep and the man who is to lead them. He could be the stone that the builder has rejected. And this could become the cornerstone of a new movement. There was a genuine and urgent need for leadership of a different kind, a leadership that is built on the need and helplessness of a people who are looking for one. It was a classic storybook scenario for great men to rise to lead. The natural leaders of the people will come forward to serve, not for money, but to answer the people’s call. This is real leadership.

Confucianism or Confusionism

The ideology of Confucianism is very clear about the roles of people and their relationship in society. Everyone has a proper place and should behave accordingly. The king must behave like a king and be responsible for his kingly roles. The people must be people and go about their lives as the ruled. Also, people must behave responsibly to fellow human beings. The father or mother must be what they are, as responsible parents. Relationships and roles are clearly structured, no overlapping or crisscrossing, no confusion. And no wearing multiple hats of conflict and contradiction. When such conditions exist, society or country will be orderly and peaceful. When the roles are mixed or interwoven, when king acts like commoners, or parents like irresponsible children, or acting as both, everything under heaven will be in turmoil. Applying these to our present polity, I can see only Confusionism instead of Confucianism. What we have today is a govt that is not only the govt but also in business. And businesses, with govt participation, think or sometimes behave like they were the govt. The workers are represented by the Union. The Union is also the govt, or led by the govt. So the govt is the union and is the worker and vice versa. This confused or complex state of beings has completely blurred the respective roles and responsibilities of the organizations. Obviously the design of these organizations to be in this way was cleverly crafted to operate in harmony and efficiency. When things are running smoothly, the system will be greatly admired and appreciated. We have attributed our success and good fortunes to these creations, tripartism, Singapore Inc, privatized public hospitals and privatised public business organizations etc etc. But when things start to go wrong, when there is conflict of interest, people get confused. What are they supposed to do when they are 3 in 1, govt, business and people? The holy trinity is supreme only in the heavenly abode when each can switch roles instinctively with ease without compromising one another. In the earthly dimension, human beans are not that godly to be able to switch their roles efficiently. A time delay often occurs when the incumbent responsible has to decide which hat he wants to wear or should wear. The minibond crisis and the great retrenchment are classic examples of how people got confused in their roles. There are many other examples. Should they act on the side of the govt, or on the side of business, or on the side of the people? Which is the correct role to play? It is Confusionism at its best. In the midst of this confusion, Tan Kin Lian rises to lead the people when many people and organizations should be doing so but not doing. Once the void is filled, the divide gets clearer and wider by the days. Confucianism is good when there is no confusion. Confusionism is troublesome.

Graciousness by examples

We have been talking about being a gracious people for many years with campaigns and leaders teaching and guiding the people on how to be gracious. I think being gracious must be something good and desirable. It speaks a lot about what a person is when the person is being complimented as a gracious person. Straits Times Senior Correspondent, Lim Siew Hua, wrote an article about how gracious McCain was in his concession speech after losing the Presidential Election to Obama. Or was it American graciousness rather than the graciousness of a single man? Al Gore was equally gracious when he lost to George Bush. And that incident was particularly disturbing and veered towards the element of fraud or misdeeds. It would be disastrous if it happens here. So were the other losing Presidential candidates. They all had kind words to say about the victors. But graciousness is not only from the losers. The victors were equally gracious and magnanimous to their defeated opponents. They only have praises for them and could have hugged and kissed them once the election is out of the way. Obama talked about what a wonderful man and hero McCain was. And after the election it begins a healing process when both parties come together as one people. There will be post mortems, but not to find out what wrongs were committed by the other party and to settle scores. No one is going for the butcher knife. That is the graciousness of a people of a great country. But America has more than 200 years of history to learn how to be gracious. It takes time to learn the nice things about life. Learning to be an expert in expletives, in being bad, is easy. In fact it is so natural that no learning is required. To be gracious is a difficult thing to learn, and to be.

The people are ready for minority PM

Not only are the people ready for a minority PM, the political system is also ready for it. We have the GRC to ensure the presence of minority MPs. And we have a system whereby the PM is elected by the cabinet or core leaders which can be counted by a pair of hands or maybe add a pair of legs. These are the wise men and women that decide who is the PM, not the people. The people are not ready? Who says so? Is there a poll being conducted? From the discussion in the media and cyberspace, the majority are all very happy to have a minority as a PM. They all believe in meritocracy and the best man or woman wins. And this feeling for a minority PM is especially more pronounce among the majority as many have already been colour blind after 45 years of being a Singaporeans. Look at the inter racial marriages taking place and you will know that the majority loves the other races more than their own kind, and have no inkling of racial differences. Malay, Indian, European, all are happily married to the majority. And many from the majority have spoken up in favour of a minority PM. And we have tested this with the elected Presidency. The current elected President is a minority and happily accepted by the majority. He is also very popular across the races. In short, Singaporeans are already colour blind. I am not too sure of the new citizens who are still very conscious of their own ethnic identity.

Union should stand up to face more retrenchment

With Singapore's number one bank firing 900 staff, other banks and companies could take the cue and go into full drive to shed the unnecessary fat that they have accumulated during the hazy days of good profits. Time to start trimming the excesses and grow lean. What will the union do in the face of more workers facing the chopping block? Lim Swee Say has made the harshest comment so far on DBS. But what's next? We have more than 10 years in converting our rigid pay structure to a flexible one with built in flexi wage and bonuses just for a day like this. Apparently this has been forgotten and everyone is happily wielding the axe as the cure all of the ills of years of irrational exuberance. There are many other measures that can be implemented other than just axing staff, plus the flexi wage system. There is still a last cut from the CPF. But this is still a long way off. For companies that believe in equal misery and every employee is a member of the big family, that they are caring employers, the first thing to do is to cut bonuses and later wage reduction, early retirement etc. Given the present crisis, some jobs will not be there anymore and this is a unique problem of its own. The unions must have a list of criteria to look at before giving the nod for companies to cut jobs. Are the companies still profitable? What is the bottom line before union will agree to such a drastic measure? Have other alternatives been explored and adopted that are less painful? Would the retrenchment mean that those who stay will enjoy no loss in pay or benefits? And like it has happened before, after a few months, companies that retrenched staff start to hire again and paying huge bonuses that they benefited from the retrenchment. Companies also have a responsibility as a corporate citizen. If everyone is so trigger happy to cut staff, we will have a big unemployment problem in hand and many families are going to have a hard time. It is time that companies, especially those that are 'protected' in some ways be it monopoly or special privileges, connections etc be made to absord some of the pains of the recession and stop thinking that making profit is a guaranteed right of being. It is time that they accept that in bad times, they must absord some losses and look after their employees. The investors were told to take their losses for bad decisions in investing in wrong notes. The union should pass this message through and wave the red flag and cry foul.

The lesser beings are trembling

The lesser beans in Japan and Australia are trembling in fear of short sellings in their stockmarkets. Australia yesterday announced that they would continue to restrict shortsellings in their market. The higher beans in paradise are still so confident that they can manage short selling in the market and are not doing anything about it. Or they are oblivious to the damage that it is causing to the investors here and the viability of the stock market in the long run. We are simply brilliant!