Kudos to Nanyang Polytechnic

Nanyang Polytechnic sent to me, by e-mail, two PDFs containing details of their student internship programme for 2012 and another PDF containing an application form. I printed the application form, completed it neatly within 10 minutes (as they only asked for essential information) and faxed it to them. I was not required to log into a website and fill up an online form - thank goodness!

This is the easiest form that I have to complete to a government agency, in this case a polytechnic. To reciprocate their kindness, I completed the form neatly in block letters. If I miss out any essential information, they can always reply to me by e-mail.

I wish to thank the management of Nanyang Polytechnic for being considerate to the public.

Live a happy life

Here are some tips to live a happy life, while you are still alive.
http://exposingthetruth.info/top-five-regrets-of-the-dying/

Wireless@SG and 3G

The IDA wishes to encourage more people to use the free WiFi service called Wireless@SG, so as to reduce the data load on the 3G network.  Why are people using the chargeable 3G instead of the free WiFi service? There are many WiFi hotspots, and users can save on the data charge and also get faster access.

I hardly use Wireless@SG because it is quite troublesome to login to many hotspots, especially on a mobile hone. What is your experience?

Year end Sale of books - 15 & 16 Dec 2011

There will be a sale of books at the office of Tan Kin Lian & Associates in Midview City on 15 & 16 December 2011. Discounts of 50% will be given.
http://tankinlian.com/admin/file.aspx?id=596

Free Collector's Item: Tan Kin Lian Presidential Election 2011 Poster will be given FREE for purchase of $50 or more (while stocks last).

Hard for the PAP to change

Read this analysis by Alex Au
http://yawningbread.wordpress.com/2011/12/03/four-barriers-to-remaking-the-pap/

Wasteful procedure (2)

This letter was not published by the Straits Times

27 November 2011

Editor, Forum Page

Straits Times

I support the suggestion by Mr. Tan Kin Lian asking to review the outdated procedure for getting the replacement of a lost title deed.

I find that advertising the loss of the title deed is unnecessary and a waste of time and money, as I had a similar experience sometime ago. After all, how many people bother to read the classified advertisements in the papers? 

The reply given by the Director of the Land Title Registry shows that this government is inflexible in their policy, and is still clinging to outdated procedures, or does not care about the unnecessary cost and expenses that they are imposing on the citizens.

William Tay

 

Wasteful procedure

This letters was not published by the Straits Times.

26 November 2011 

Editor

Forum Page

Straits Times

I refer to the reply "Why notice on property cert is crucial" from the Director, Land Titles Registry.

The Director justified the requirement for an advertisement in the Straits Times on the following grounds:

• to alert the public of the lost certificate and to prevent is improper use
• a similar requirement applies to Australia and Canada

I wish to ask the Director to clarify the following:

• how could the certificate be used improperly, when there is a requirement for any interest in the property to be lodged through a caveat with the Registry
• how many cases of advertisements were made in recent years and how many instances were the public notified through the advertisements 
• whether Australia and Canada has a system of registry of land titles that is similar to Singapore that could prevent improper use?
• if other countries, e.g. UK and the USA, have done away with this archaic requirement?
• if the advertisement in a website could have served the purpose, without the need to advertise in the newspaper?

I wish to encourage our government agencies to update our requirements and procedures to reduce cost to the public, without increasing the risk of fraud and abuse.

Tan Kin Lian

Singapore is quite backward

In spite of our banks spending hundreds of million dollars on their I.T. systems, Singapore is actually quite backward. Many people write checks and mail them to their payees.

I have just written a check to pay my subscription to a professional body in Singapore. I have to mail the check to the organization.

In a more advanced society, I could pay by credit card or by bank transfer. The professional body in Singapore does not allow this form of payment because the process is quite a hassle. It is a hassle to make a one time payment in Singapore and also a hassle for the receiving party to identify who has made the payment.

In other countries, the payer will use internet banking. The receiving party receives receives the payment with the necessary details to handle their processing. It would have been much more convenient for all parties.

I believe that the backward processes in Singapore is probably due to requirements by the Monetary Authority of Singapore. Some of these requirements, whether in the name of security or anti-money laundering measures, are implemented mindlessly, making the measures to be quite impractical. But, sadly, this is Singapore. I hope that MAS will get advice from practical people on some of their measures, and can make a judgement on security and practicality.

Read this blog from Mr. Brown. I share the same sentiment. http://www.mrbrown.com/blog/2011/12/now-you-can-e-bank-with-more-peace-of-mind-but-with-bigger-pain-of-ass.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+mrbrown+%28mrbrown%29

I made a payment of a subscription to a professional body in the UK. It was quite easy. I paid through my credit card.

My friend from the UK was surprised that people in Singapore are still signing cheques and authorisation to his bank. He said that in the UK, he only needed to give a personal PIN number for all his transaction with the bank, and has never use his signature with any of his transactions with his bank for years!

Middle Class Squeeze

Lucky Tan wrote this interesting article about the Middle Class Squeeze. He said that luzury cars, including Ferraris, now take up nearly 50% of the new car market in Singapore. http://singaporemind.blogspot.com/2011/12/middle-class-squeeze.html

A new 1 bed room condo at Lorong Chuan goes for upwards of $538K. A quick calculation shows the cheapest 1 bed room unit in the development is sold at a price that is 17 years of a median income worker's total income. If he uses his income fully to service his condo, he will take 17 years...nothing left for food, clothing, utilities etc. What is prudent for someone earning the median income is a small HDB flat which is shrinking over time[Shrinking HDB flats due to need to maximise land and to adapt] and public transport which is now so crowded it is like a cattle ferry. There is also the problem of healthcare which is rising at double digits and outstripping median income growth. If you look at the Singapore worker in the middle earning the median income wage, his quality of life is not equal to a middle income worker in a developed country. Its gets worse as we go down the wage scale. When we get close to the bottom which is quite far down since there is no minimum wage, we have 350,000 workers who work full time but cannot make ends meet and depend on workfare to survive[Older, low-wage workers get Workfare bonus ] - these workers will never accumulate enough savings to retire and have to work their whole lives.

Excellent app on iPad (Go There)

I downloaded an excellent app on iPad called GoThere. It is easy to use and provide transport options by car, train, bus and driving. The app cost $2.99 and is excellent value. It is especially helpful if I have to take a bus or train, instead of driving. There is another app called "Show Nearby" which is free, and is also very good.

40% discount on 5 book bundle

Enjoy a 40% discount on these 5 book bundle.
http://easyapps.sg/iShop2/ProductInfo.aspx?id=44

Order can be placed here: www.tankinlian.com/ishop

New Wisdom Book

New Wisdom Book

Wisdom on How to Live Life (Book 4): Transforming Earth into Heaven

Humans being the most intelligent species and having lived on Earth for thousands of years, we are yet nowhere near to a life of peace, love, joy and harmony. This book contains a hypothetical story of a young man, Tom, who had a fifth conversation with Guru Harry. This is a continuation of their first four conversations which are contained in the books “Wisdom on How to Live Life”, “Wisdom on How to Live Life (Book 2)”, and “Wisdom on How to Live Life (Book 3)”. Guru Harry epitomizes someone from a spiritual society who offers a way of living which can lead to peace, love, joy and harmony.

Through this fifth conversation, Tom learnt that (1) why we should not disrespect those who are at a lower level of development, (2) why we cannot hear things spiritually, (3) what is the pleasure that everybody can afford to enjoy, (4) what is the catch in evolving spiritually, (5) how to practice “To be in the world but not of it”, (6) why life should not be just about making a living, (7) why we should pay people for doing spiritual work, (8) how to become a master of life, (9) why societies set up all kinds of reward systems, and (10) how to create a heavenly society.

The book can be ordered here.

Defending your online reputation

Here is a service that can be used by small businesses:
http://www.cnbc.com//id/45526165

Stop! Full House

Here is a cartoon by Wing Lee
http://sg-quitters.blogspot.com/2011/12/stop-full-house.html

Market for expensive cars

My friend, who is a permanent resident, told me that Singapore is the largest market for expensive cars, such as the Lambourgini and the Ferrari. This is in spite of our small size. I asked me to send me the the statistics, as I do not recall seeing this report. Can anyone help to verify this?

Invest in an indexed fund

One in four active fund managers beat the index. It is better to invest in an indexed fund and pay low fees. http://www.cnbc.com//id/45524957

Kwality brand new identity

Above are the old dull outdated brand however a lot of markteers are debating about why to launch an ice-cream rebranding in Winter??

its obvious that their return on investment measurement is not placed yet and they have some extra dollars that no need for. Typical case "CEO of arabia".

wherever the reason, its stupid and reflect how non planned brand you are .

As for the positioning, good luck next time in uniting generations Y & Z.

Property bubble in China

There are many empty apartments in China.
http://www.youtube.com/watch?v=wm7rOKT151Y&feature=player_embedded

Action by Massachusetts Attorney General

I like to share this story about the legal action that is being taken by the Massachusetts attorney general against several large banks for deceptive banking practices. I applaud the action as it shows that there is accountability and that public officials are willing to take action to safeguard the interest of small consumers. Although American is the place where the bad financial practices originated, and spread around the world, there are still people there who have a sense of duty.

http://money.cnn.com/2011/12/01/news/economy/massachusetts_foreclosure_lawsuit/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Singapore has followed America in adopting some of the bad practices, such as the bad financial products that were created and sold to consumers. It is time for the Singapore authority to realize that they also have a duty to the public and to stop the bad financial products from being marketed to defraud the public.

Challenges from the global economic system

There is a general worry that slow growth in US and Europe will cause problem to Asia, and especially to China being the largest manufacturer in the world. This could lead to unemployment and unrest.

Think again. Why are we having an economic system where people have to work long hours, just to earn enough money to survive, and along the way, other people have to be unemployed? And we need to keep growing faster, so that they is enough work for people to work long hours just to be employed?

The simple answer is "the majority of people have to work long hours, as slaves, just to earn enough to get by, so that the 1% can be super rich. The worst countries are those with the largest disparity of income between the top 1% and the bottom 99%. Sad to say, Singapore fared among the worst in the world in this measure. This is why we have one of the lowest birth rate in the world and a high level of unhappiness among the people".

What is the solution? Minimum wage (to make sure that people can earn enough with 8 hours of work), control over immigration, better planning and allocation of resources. Singapore fared badly on all three measures, but the situation can be managed, if we pay attention to these matters now.

Be educated on financial matters

Hi Mr. Tan,


Its been a pleasure reading your blog this evening. I've been looking for some investment advice and found your explanation on dual currency investment, which I've admire its simplicity and transparency.

I've got some extra cash in US dollar 50K which are kept in a bank for several year with low yield. With the rate of the inflation nowadays, I feel that that value is depreciating and I'd like to invest on some banking products or instruments which will provide good yield with a medium risk to cover the inflation within 3-5 yrs.

Will you be able to advice me and pretend if its you're money. What will you do? What will be the best option of investment right now in Singapore and amidst this EU crisis?

REPLY
Read this
http://tankinlian.com/Redirect.aspx?PK=6e81acf4a41c102e93b20d62c2a6f8e8

Lack of consideration for the public

30 years ago, an immigration form was the only way to track and monitor the movement of people into and out of a country. There were fewer people travelling in those days. The traveler does not mind filling up the card - as it was the only inconvenience that they have to go through.

Travelling is different today. The traveler has to complete another form - for customer declaration. There is also security check several times before boarding the plane and after arrival. Laptops and metals have to be removed from the bags and put back. The passport and board pass have to be shown a few times during the journey.

While new requirements and hassles are added, the officials forget to remove the old requirements, that are not needed any more. The passports are now scanned electronically, and make the immigration card unnecessary. I believe that millions of cards are collected each year, but are not being used. But nobody cares.

Recently, I collected the immigration card that is being given to non-residents arriving into Singapore. The card is the same as many cards that I have to fill in when I visit other countries. Although Singapore is a more advanced country in the use of technology, and has spent tens of millions on technology, we are still implementing the backward and wasteful requirements on other people.

Give a reply

I find a common experience of sending an e-mail to a friend or to a business contact, and do not receive a reply. I know that they had received it, because they reply when a send a reminder or a follow up reminder. They do not reply because they do not know how to respond, or the request was not clear, or do not have the complete information. It is almost like talking to someone, who does not talk back - just kept silent. Is this the right way to respond? What is a better way?

Learning to use a tablet

We are accustomed to a keyboard and a mouse. The touchscreen on a tablet replaces both of these accessories. This is why the tablet (such as the iPad) is so popular for people on the move.

I used the iPad during my trip to Sri Lanka and Jakarta. I bought a local data card. I was able to serve the Internet and use Google maps. It is light and convenient. It was able to avoid the use of old accessories - that was troublesome to carry around.

I look forward to a system of wifi connection that allows the tablet to be used in many places, without the troublesome registration, login and payment. It should be as seemless as the use of the data card.

Immigration forms

When I enter most countries, I have to fill up an detailed immigration form. It contains a lot of information that are taken from my passport.

At the immigration counter, I have to submit my passport to be scanned. All the information are now collected through electronic means.

Why is it necessary for me to spend a lot of time to fill up the information into the immigration form?

I also have to fill up a custom declaration form. I suspect that the form is not being used.

These immigration requirements were created over 20 years ago, in the days before the the electronic scanning of passports. After new technology was introduced, they could be discontinued or modified, but this was not done. Why? Nobody cares. After all, the burden is on the public.

There are a few countries that have taken the simple but bold step to stop the use of the immigration form - Dubai and the European unions. Some other countries have simplified the form considerably, e.g. Australia.

Perhaps, it is time for Singapore to take up this issue with the Asean countries? A good step is to simplify the form, by removing the non-essential information.

Supply and demand for property

Many people in Singapore believed that property prices will never fall in Singapore, due to our limited land and strong economy. They should take into account another important factor - demand for the land. Right now, we are enjoying strong demand from foreigners working in Singapore. But this demand can fall, when there is a global recession. At that time, there will be an over-supply of property and prices will fall. When prices fall, it can take a long time to recover. http://www.cnbc.com//id/45477559

Ultrabook

I like the Ultrabook - as it is light and have a full keyboard. It could be better than the iPad. http://money.cnn.com/2011/11/28/technology/ultrabooks/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Flexible and separate currency

Should a country have a separate currency that can be made flexible? My personal view is "yes". Here is an article that argue in favour of the same outcome.
http://newasiarepublic.com/?p=34890

Student concession fares on public transport

I watched the episode on the student concession fares with much interest. The poly students have asked to be given concession fares, similar to what was granted for junior college students. The disabled have also asked to be given the concessions. Even the Young PAP, which is the activist part of the party that forms the Government, has to speak at Speakers' Corner.

This episode highlights the fallacy of the Government in avoiding responsibility to govern. They prefer to let such matters be decided by the market. After privatizing the public transport, they decided that matters of fares and concessions should be decided by the public transport operators - or maybe the Public Transport Council has some say (I am not sure)!

The transport operators know the answer - maximize the profits, so they avoid having to give concessions, unless they have to. Their argument is that any concessions have to be borne by the full fare paying public, but this is not really true, as it can also be borne by reducing the shareholder's profits. This is really a political question - which cannot be dealt with by the free market. So, it is back to the Government to do the duty that they are elected to do.

I wish to extend this reasoning to many other sectors of our public life. We cannot let matters be left to the market. The Government has to step in and take the political decisions for our society, including setting laws and rules of proper behavior. If they fail in their duty, our society must surely decline.

Tan Kin Lian


  

Loss of title deeds

Dear Mr. Tan,
I agree with you that advertising lost title deed is unnecessary and a waste of time and money, as I have a similiar experience sometime ago. After all how many people bother to read the classified advertisements in the papers.

The reply they have you in the Straits Times forum page today shows that this government is inflexible in their policy. The public needs someone like you to change their thinking.  Keep it up!

 

REPLY 

I have sent a follow up reply to the Straits Times and to the Land Office. Please write to the Straits Times and give your views as well.

Mobile app - to find your car

I have developed an app to help me locate my car. It is a simple app that allows me to take photo of the pillar to identify my car and also the lift lobby. I used it at Camden Medical Center. Although it has a small car park on 2 basement floors, it seemed unnecessary for me to use this app - but I tested it anyway.

After my dental appointment, I went to basement 1 to look for my car. Somehow, the car park looked different from what I expected. I could not locate the car after walking around the car park. I thought that I might have parked my car in B2.

I looked at the photos in my app. It confirmed that my car was on B1. I also saw the photo of a large sign where my car was parked (which I had forgotten). I found my car quite easily.

The app works like a photographic memory. I did not realize that it could be quite useful, even in a small car park. It is also easy to use.  It is also possible to use the camera app that comes with your mobile phone, but a special app to find the car is easier to use and more targeted. This app will be realized in Apple App Store in December.

Law of contract

Consumers may be subject to unfair contract terms. It is important to know consumer rights under the law of contract. An explanation can be found in FISCA website. http://easyapps.sg/assn/Org/Staff1/Information.aspx

A good dentist

I have a tooth ache and saw a dentist at T32 clinic at Camden Medical Center. The dentist was diligent in identifying the source of the pain, with the aid of technology. He explained the problem and discussed two possible solutions. He recommended the lower cost approach to see if it works, before exploring a more serious treatment later. He spent time to educate the patient and also to find the best solution. I had expected to pay a high fee but was surprised that the actual fee was much lower. He is a good example of a professional who looks after the interest of the patient and charges fairly.

Damage caused by currency fluctuation

Here is a good example of the damage caused by currency fluctuation. It is difficult for a business to make long term plans that affect investments and employment of workers.

http://www.cnbc.com//id/45431195

It takes a few years to plan and set up a factory and a longer period to recover the investments. The profitability of this business depends on predictability of the revenue and cost. If the cost can fluctuate wildly due to currency rates, it will be difficult for any business to invest.

It is a good idea to have floating exchange rates to reflect the economic fundamentals of a country. However, the wild swings, caused by large speculators such as hedge funds, are causing tremendous damages, beyond their useful purpose. There must be some way of preventing these big speculations. Perhaps, the proposal to impose a financial trading tax will be useful. Apart from preventing the wild speculation, it will also raise revenue for the government.

Risk of investing overseas

I read a newspaper article about a British mining company having a dispute with an Indonesian company on a joint venture after discovering coal in their land. This incident shows the risk of investing overseas, where the law may not be clear and the partner may not be reliable (and I am not referring to this specific incident).

The same risk applies to a small investor who wishes to buy shares and properties overseas. You may be subject to risks and other expenses that you are not aware of. It is better to invest in local shares (and let them take care of investing overseas). At least, you know what the law in your own country.

There is still the risk that the management of the company that you have invested in, may be venturing overseas and be subject to the same type of risks. At least, they are better equipped to handle these legal and other issues - compared to an individual. In the same vein, it is better to avoid companies that are venturing overseas, without the experience. I have read stories of big listed companies involved in million dollar disputes over contracts with foreign parties.

Labor unrest in China

Factories are cutting the overtime that workers depend on to supplement their modest base salaries, after a drop in overseas orders.

According to CLB, the average basic wage for electronic workers is about RMB1,500 ($236) a month, but rises to RMB2,500 with overtime. “Their basic wage is never enough on its own without overtime,” Mr Crothall said.

http://www.cnbc.com//id/45422953 


My comment: The cost of living should be in line with wages. It is risky to ask a worker to depend on overtime work (which depends on global growth) to earn enough to pay the bills. If the cost of living is kept within control, this type of risky situation should not arise. The greed of the rich is pushing up the cost of living - and this is happening all over the world!

ASP.NET Developers and Mobile platform developers

Salary: $2,500 to $3,500

We wish to look for ASP.NET developers who knows VB.NET or C#.NET, MS SQL and MySQL. Knowledge of database administration will be an advantage.

We also need developers who have experience on mobile platforms (Windows, Apple, Android).

Candidates must be Singapore citizens and permanent residents and have at least two years of experience in the relevant platforms. 

We have many exciting developments that are shown in www.tankinlian.com/enterprise and www.easysearch.sg. 

If you join us, you have the chance to be involved in many exciting projects and the opportunity to learn new and innovative methods. 

Send resume to kinlian@gmail.com

Difficult to operate a small business

Dear Mr Tan,
I am just starting a new business of importing some baby products. I have done some market research and was intending to send a proposal to NTUC Fairprice to consider. Can you advice - is this the right way to go about doing it?

I have also seen in some forums, it is not easy as a new comer who has no connection or do not know anyone inside beforehand. I really hope you could share with me how I should approach them? Or who should I contact?

REPLY
Three years ago, I approached Fairprice to sell some of my products. They required me to pay a joining fee of $1,000 and to go through quite troublesome procedures. They also want to take a big cut from the sales amount and require me to handle the delivery to all their outlets and collect back the unsold stock. I abandoned the idea. (Note: connection does not count -as I knew the managers. Only money count!).

It is not easy to sell products to these big retailers. They want to charge you a lot of money before you make the first dollar. Their payment terms are also quite bad. (I had to wait one year before collecting payment for the sale of my books though a book distributor!).

If you wish to go into this business, make sure that it is a big business, otherwise, the costs will kill the business.

Currency speculation cause damage to the economy

This article explains the damage that currency speculation is causing to the economy of many countries. The speculation is being promoted by the financial sector, i.e. the hedge funds, banks and other financial institutions. It is time to find ways to stop the harmful speculation.

http://singaporemind.blogspot.com/2011/11/world-of-wild-fiat-currency.html

Population and public transport

Alex Au has written a good article. I like the point about feeder service taking 15 minutes to arrive. This is the weak point of our transport system. He also question about the need to increase our population to 6 million. I agree that we should not increase the population, as Singapore is already too crowded and the facilities are inadequate.

http://yawningbread.wordpress.com/2011/11/24/additional-public-transport-capacity-hard-to-estimate-benefit/

Visit to Sri Lanka

I have just returned from a 5 day trip to Sri Lanka. I went to Kegalle and Kandy and also took a tour of Colombo (apart from attending an insurance conference). It was a nice experience for me, to enjoy the warm hospitality and friendliness of the people of Sri Lanka.

My return flight on Sri Lankan Airlines was delayed by 10 hours. They put me up at a beach hotel quite close to the airport. Although it was inconvenient to be delayed so long, I had the chance to experience a short holiday at the beach, and to learn about the livelihood of the people in the village, which caters mainly to tourist.

Should the Euro break up?

Several experts have said that the Euro has to be broken up and some countries, like Greece,should issue their own currency. How will this help to solve the debt crisis in Greece?

Greece now issue government bonds in Euro. Because of the risk of insolvency, the interest rate on these bonds have shot up. If Greece were to leave the Euro zone and issue their bonds in their own currency, i.e. the Drachma, the interest rate will be even higher as the investors have to face the risk of default and depreciation in the currency.

How will having their own currency help the Greek government? I have an interesting observation. The Greek government is not able to collect sufficient tax revenue to pay their expenses - e.g. due to tax evasion. They can continue to fund their deficit with debt in their currency. The interest rate will shoot up and the currency will depreciate over time. The depreciation in the currency is a way of lowering the standard of living for the people, who are living beyond their means. It is also an indirect way of taxation.

High inflation has its other negative impacts but this is a separate matter. It seems to be a good idea for each country to have its own currency, rather than to join a strong currency like the Euro.

There was a similar situation during the Asian Financial crisis. The currencies of several Asian countries were pegged to the US dollar. As this was unsustainable, the pegs were broken, leading to quite severe damage. After the currencies were unpegged, they were able to adjust to their right level and their economy regained their strength.

It looks like the Euro will have to break up.

Banks Accused of ‘Dishonesty’ on Reform

Bankers’ efforts to water down tougher new regulations by claiming they will harm economic growth are “intellectually dishonest and potentially damaging” and could inspire an even more robust crackdown, a leading UK regulator has warned.

“A profession which should stand for integrity and prudence now supports a lobbying strategy that exploits misunderstanding and fear,” said Robert Jenkins, who was named in July to the 11-member Financial Policy Committee, a new body charged with protecting financial stability.

“Banks can strengthen their balance sheets without harming the economy. They can do so by cutting bonuses, by curtailing intra-financial risk-taking and by raising term debt and equity,” he said.

http://www.cnbc.com/id/45412860

My comments: These are strong words, but I agree with the views expressed by Robert Jenkins. Actually, I prefer that commercial banks should return to their core functions of payments and loans, and should not be speculating in the markets.

Governance without guilt

I saw the phrase "Governance without Guilt" used in the Colombo newspaper. It refers to the concept that governance (of the country and business corporation) should be done ethically, i.e. without guilt. I also saw the phrase used for the garment industry, i.e. "Garment without Guilt". This is the Sri Lanka response to the greed and corruption that is now quite prevalent in the business and government sectors.

Unhappy with Singaporean Airlines

I met a Singaporean at the lounge in the hotel in Colombo. He had been travelling first and business class on Singapore Airlines for 20 years. Recently, he gave up on Singapore Airlines and now travelled on Asiana Airlines (from Korea). He was disappointed with using the new SIA website. He also found the counter service (often manned by foreigners) to be unsatisfactory. He now lived in Hong Kong as a permanent resident and travel around Asia for his business. 

Bank charges and anti-trust law

The attempt by some banks to impose debit card charges might violate the anti-trust law, as the banks and the associations might be acting in collusion. http://money.cnn.com/2011/11/22/news/economy/banks_antitrust_review/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

In Singapore, we have the Competition Law, which has similar functions to the anti-trust law in America. I hope that our regulators will also look at the practices of banks, telcos and airlines in Singapore - as they are likely to follow the practices in America.

I prefer an environment where a business charge a package fee for its service and avoid making additional charges for additional items that should be part of the package. By imposing extra charges, the business is making life more complicated for its customers and also adding to the administrative costs. Often, the customers are not aware of the additional fees and are held under ransom - when they need the additional services.

The practice of charging additional fees has promoted a law-maker in the USA to introduce legislation to prevent some of the bad practices. While this legislation is not likely to be supported, due to the strong industry lobby, it goes to show the bad business practices.

http://money.cnn.com/2011/11/22/news/companies/baggage_fees/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Investing in the stock market

Retail investors have been avoiding the stock market due to uncertainty, but corporations are buying back their own shares, as they represent good value. http://www.cnbc.com/id/45402485

Be educated on financial matters

I received a few requests from consumers asking for my views about specific insurance policies that they are considering. I asked them to attend the financial planning workshop to be held on Saturday 26 November. Details can be found here:
http://easyapps.sg/assn/Org/Event.aspx?id=5

I also asked them to read this document:
http://tankinlian.com/admin/file.aspx?id=444

Living with your parents after college

Hi Tan,
We posted an article that we thought you and your readers might be interested in having a look at, “10 Financial Benefits of Living With Your Parents After College” (http://www.businesscreditcards.com/bootstrapper/10-financial-benefits-of-living-with-your-parents-after-college/). Just thought I'd let you know that you would be interested in featuring or mentioning it in your blog.

Tips on Financial Risk Management

Read these tips to get an idea about the important risks that you have to take care of, and how to make the right decisions.


http://tankinlian.com/admin/file.aspx?id=595&PK=6a384d176546102f919ef4fa093d18bf

Medical records on Picasa

I found a good way to store my medical records that may need to be retrieved in the future. I took photos and uploaded them into Picasa. Here is an example of my spectacle prescription that is stored in this manner:

https://picasaweb.google.com/114697964702306407039/SpectaclePrescription?authkey=Gv1sRgCLnN1YLjtrvQTQ#5676484064970023762

I want to encourage people to keep their medical record on Picasa by taking and uploading the photos. This may come in handy, when they need to refer to another doctor needs to see their old medical records.

Google Maps and iPad

On arrival at Colombo Airport, I bought a pre-paid data card for my iPad. It was a great decision. I was able to use Google Maps during my visit to Kandy and also around Colombo. Google Map tells me where I am at any time (using GPS) and allows me to look at the buildings and roads nearby. I was also able to use Internet connection at any place. Steve Jobs had done a great service to mankind in developing the iPhone and iPad and the Maps from Google are also great!

Selling agents

Contributed by Anthony Hobrow


I had an unsolicited telephone call on my mobile from an Indian outfit purporting to represent HSBC, offering me a loan and/or overdraft facility on great terms. Terms that got instantly much better when I said ”no”! I refused to give my details until I had checked these people out with the bank itself. So I emailed my bank and asked if they were genuine agents; I did this in my interests and in the interests of the bank.


The emailed response I got, 3 days later, was “All banks in general engaged 3rd parties to cross sell their credit products. HSBC does so as well. However I am not sure if Efusion Solutions is one of them, as these are arrangement set up by other departments. “


A wholly disgraceful response. (Nb It subsequently turns out that Efusion is a genuine agent).
Always check out unsolicited calls before revealing any personal details.


Anthony Hobrow
Direct Asia

Logic Challenge

How good is your logic? Try these puzzles: http://tankinlian.com/admin/file.aspx?id=379
More of these puzzles can be found here: http://projects.easyapps.sg/iShop/public/common/File.aspx?file=45
You can buy the book at www.tankinlian.com/ishop

Manage your personal risks

Dear Mr.Tan,

I would like to seek your professional advice on getting the coverage. What happen is because my company's insurance has a maximum claim of only $3000.

As this is too little coverage, I thought of getting additional coverage myself.  Please advise what is adequate and which is the cheapest plan.

REPLY

How old are you?

How much are you earning now?

Are you in good health?

You should attend this workshop and learn how to manage your personal risk

http://easyapps.sg/assn/Org/Event.aspx?id=5 

Medical insurance is just one of the risk. There are more important risk for you to take care of.

Cinnamon Lakeside Hotel, Colombo

I am staying at the Cinnamon Lakeside Hotel. The service is excellent. The staff are knowledgeable and helpful. It is the best service that I have experienced in a hotel. Here are some photos of the view from the balcony overlooking Cinnamon Lake and of the breadfast at the executive lounge of the hotel.

I tried Kiri Bath, which is rice baked with coconut. It was delicious.

I had to connect three devices to the wifi network of the hotel. The I.T. staff came to my room to allow the multi-access. He was knowledgeable and got all of them working soon. He also told me what the issue was and how he solved them.He logged into his server to allow access to the 3 devices.

Make better use of natural resources

During the past two decades, we have been over-consuming our natural resources. We extract the mineral resources at low prices and used the low wages in developing economies of Asia to manufacture products at low prices. The prices are so low that it is better to buy and throw away, rather than repair them, when they become faulty. We neglect to count the cost of disposal, and dispose products in a manner that damages the environment.

The days of low prices is probably over. We now see ballooning prices for mineral oil, gold, silver and other commodities. Food prices are escalating.  Wages are also escalating in many countries are also moving up. The flood in Thailand, tsunami in Japan and other natural disasters are reducing supply and jacking up costs.

The days of cheap manufactured products are over. We have to get used to more expensive products and have to use them more carefully. We have to change our wasteful habits. This education process has to start with our young people, as they are brought up in a wasteful environment.

Make your own flexible annuity

This article explains that you can get a higher annuity when you buy it at a time when interest rate is high. But, the problem is that you do not know whether interest rate will go higher or will fall. So, you may be waiting for a long time.

http://money.cnn.com/2011/11/17/pf/expert/annuity/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

A better way is to have a flexible annuity that you build on your own. This is explained in my Financial Planning workshop that is held on 26 November 2011.

http://easyapps.sg/assn/Org/Event.aspx?id=5

Colombo, Sri Lanka

I will be in Colombo, Sri Lanka for the next five days to attend a conference and also to take a holiday. I am staying at the Cinnamon Lakeside Hotel. The staff are polite and helpful. This is the best service that I have experience in my years of travelling.

Tips on life insurance coverage

A young man asked me, "How much life insurance do I need and what type of policy to buy?" The answer can be found here: http://tankinlian.com/admin/file.aspx?id=589

The world’s local bank... but I wish it wasn’t!

Contributed by Anthony Hobrow


I am trying to get my partner a joint bank account with me and a credit card. This will take two weeks the bank says. BUT worse is that the bank regards this as a new relationship requiring another minimum holding of S$200,000. This is for a customer who has been loyal to this bank for 43 years!! So if I complied I would have S$400,000 on deposit with this bank, earning almost zero interest. Luckily I had my London branch manager fix it for me and I have not had to do the deposits. I am not sure it is good that this bank is the world’s local bank – it seems to me they are hugely better in London than here in Singapore. Ten days on and I still don’t have the new cards or accounts!!


They even told me I couldn’t change my relationship manager unless I started a new account. Believe me, we have no relationship and a fresh start with someone new is in the interests of both me and the bank!


Anthony Hobrow
Direct Asia

How to buy Term Insurance

Enquiry: 
Hi Mr. Tan, I am so happy to find your blog where provides me some good advises for buying insurance. I know that you suggest people to buy "term" and invest " ETF". I agree with your points to do so. However I found it is not easy to find " guaranteed renewal term" policies. Can you please advise. 


REPLY
Read this FAQ

http://tankinlian.com/Admin/File.aspx?id=56

Cheating - as defined in the Penal Code of Singapore

Cheating – Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he or she would not do or omit if he or she were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat".For example, A cheats if he intentionally deceives Z into a belief that A means to repay any money that Z may lend to him when A does not intend to repay it, and thereby dishonestly induces Z to lend him money.Cheating is punished with imprisonment of up to one year, or a fine, or both.

Cheating is a crime and action has to be taken by the state, i.e. it is not a civil matter. If a person deceives another person and receives money from the victim, the person is committing the crime of "cheating".

If a forex trainer claims that his technique is guaranteed to make money, and the representations are false, the trainer is deceiving the students and can be charged for the crime of "cheating" them of the fees that are being paid.

Effect of Deduction

Hi Mr Tan.
I am signing a policy soon. But I don't understand what the effect of deduction is. It's a AXA policy called INSPIRE FLEXI 2. After reading your blog, I tried to do the calculation but am more puzzled. Attached are the 3 pages of the illustrations. I hope that you can advise me.

REPLY
The Effect of Deduction is the amount taken away from your future savings. You can see that this is a large amount. Why are you investing in a life insurance policy when so much is being taken away?

It is better for you to invest on your own, e.g. in the STI ETF, as advised in my book. You can buy term insurance for your life insurance protection. Please read my books for a better understanding on this matter. www.tankinlian.com/ishop

You can also attend the FISCA talk on 26 Nov 2011 - register here: http://easyapps.sg/assn/Org/Event.aspx?id=5

In the meantime, you should not take up the life insurance policy, especially as you do not understand these important matters.

Ask Mr. Tan

I have received question from readers of my blog on life insurance and financial planning. I usually ask them to read my books which are available from www.tankinlian.com/ishop. Often, the answers can be found in these books. In the future, I will ask them to make a donation of $200 to FISCA, before I look into their question.

Higher business costs

I met the owner of a chain of coffee shops. He told me that his business is being squeezed by higher rentals and shortage of manpower. His employees keep resigning, as they can get better wages elsewhere, after the government clamped down on the work passes. He feels the pressure of squeezed margins.

I said that to look at this matter in a different perspective. The higher rentals and wages apply to all of his competitors, and does not hit him alone. So, the higher costs will have to be translated into higher retail prices for his products. As long as he is more efficient that his competitors - and he is selling this coffee and breakfast at lower prices - he will be able to do well. People will still need breakfast and coffee, so they will continue to patronize his outlets, even after he has adjusted his prices to cope with the higher costs.

Higher prices are bad for the consumers - but this has to be solved at the government level - to moderate the rentals for business outlets. It is good for wages to be adjusted upwards, as the workers need to earn enough to feed their family.

I welcome the move by the government to build more markets at HDB estates - and hope that these outlets will be rented at non-tender prices. If they are at moderate levels, it will help to moderate the rentals in the private sector as well.

Flexible Pensions

The state pension systems adopted in many advanced countries are now in deficit, due to ballooning cost and under-funding. This does not mean that the pension system is inferior to the provident fund system (such as the Central Provident Fund operated in Singapore). The provident fund system also has its pitfalls.

The key weakness of the pension system is its rigidity. It aims to pay the pension in predetermined amounts when asset values and economic conditions can fluctuate significantly. A better solution, which has not been tried, is to have flexible pensions, i.e. the amounts will be changed according to the underlying value of the assets. This type of flexible values are already embodied in mutual fund investments and can be applied to make pension payments flexible and keep the system solvent over the long term.

There are two key advantages in the pension system. First, it provides for pooling of investments over the long term, by professional fund managers. This is much better than allowing the retirees to take out their provident fund savings to invest on their own - as most lay people cannot manage their own investments.

The second benefit is the pooling of longevity risks. Those who die younger draw out less, and allows the pension fund to pay the pensions to those who live longer.

The fear about insolvent pension schemes can be addressed by building in the flexibility to the pension payments.  In good economic times, the pensions can be bigger. In bad times, they can be smaller. The pensioner can cope with fluctuating pension amounts (provided that the adjustments are modest and made every six months). When they receive a smaller payment during an economic downturn, the cost of living will probably be lower - so the smaller pension payments may still be adequate.

It is time for Singapore to convert CPF Life into a flexible pension scheme and to make it attractive for retirees to invest their savings (other than the CPF minimum sum) in a sound pension scheme.

FISCA Financial Planning Workshop - 26 Nov 2011

The next FISCA financial planning workshop is available for registration now at http://easyapps.sg/assn/Org/Event.aspx?id=5
The last workshop was well received. Here are two feedbacks:

Ong:  I think the seminar is very relevant especially for young people who have recently joined the job market. It can really help make good investment decisions and avoid pitfalls that could ruin people's lives. The talks on Financial Planning today were both interesting and enlightening. Mr Tan Kin Lian's delivery is frank and very helpful, especially in understanding financial planning and  insurance policies. Kindly keep me inform of his future talks.

Najmi: Thank you for such an informative session earlier. I thoroughly enjoyed it and learnt a lot from you and Mr Ling today.  

One participant sent an e-mail to all his friends to recommend that they attend the workshop.

Rates of GST

Here are the current rates of GST adopted in various countries:

Australia 10%
Canada 5%
Hong Kong (abandoned)
India (to be introduced in 2012, rate not decided)
New Zealand 15%
Singapore 7%
Germany 19%
Japan 7%
Sweden 25%
UK 20%

I am not able to draw any conclusion on this matter. I dislike GST and prefer the government revenue to come from income tax. But, it seemed that many countries are implementing GST.

My view: In Singapore's case, there is no need to have GST as the government collects a lot of revenue on sale of land and vehicle tax. Furthermore, welfare benefits in Singapore is quite low. We are in a similar situation as Hong Kong, which does not have GST. 

Inefficient and bureaucratic bank process

Contributed by Anthony Hobrow

Banking in Singapore leaves me frustrated at every turn. I am not sure how much is the fault of the bank and how much is detailed regulation by MAS but the end result is a system where there appears to be no authority granted to the front line, excessive paperwork and very long process times. It is not the same in London.

With the same international bank I can get an overdraft facility in one short phone call. Here it has taken paperwork and two weeks! I even had to provide copy payslips when the bank has access to every receipt and payment in my account in UK and in Singapore and has access to 40 years of my banking history!! What possible purpose can a payslip serve?

I needed a new credit card as my card failed sometimes to work when I was travelling. In UK this would have been couriered next day to wherever I was. Singapore could not send me a new card. I had to be with a faulty card until the end of my trip and then collect a new one when I got back. BUT the worst thing was they cancelled my old card and took the account off the internet banking facility, before I had the new one! The card was not lost or stolen, just worn and intermittently didn’t swipe well.

Anthony Hobrow
Direct Asia

Mortgage insurer in big deficit

It seems that there will be extremely difficult times ahead for the USA. The Federal Housing Agency insures the mortgages on many homes. They are facing a big deficit and need to be bailed out by the Government. Wow! http://www.cnbc.com//id/45305350

If we look at the problem of the housing market in the USA, the lesson is that property prices should not be allowed to go up too high - as it will eventually have to burst. A good benchmark in the past is that property prices should be 3 years of the average income of the main bread winner (and excludes the income of the spouse). The USA has allowed the property prices to go up under a deregulated environment - and is now suffering the pain of adjustment.

The situation in Singapore is worse, as our property prices - in relation to the average income - is worse than USA. It is now being propped up by foreign buying - but we cannot count on this source of support for a long time. (Note: Dubai was in a similar situation with its property market at a high level due to foreign funds, but it has now burst.)
  

Bank failed to get customers to accept fees

JP Morgan Chase has to give up the trial on several bank fees, due to non-acceptance by its customers:
http://money.cnn.com/2011/11/15/pf/chase_bank_fees/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Pension and provident fund

There is a difference between the operations of a pension fund and a provident fund. A pension fund promises fixed benefits to the pensioners and may face a deficit when the value of its assets fall below its obligations. This is explained here: http://www.cnbc.com//id/45307724

In a provident fund, the amount due to the members vary according to the value of the assets. If the assets earn a low yield, the interest credited can be quite small and may fall below the rate of inflation. The members have to bear the fluctuations of the market.

I am personally in favor of a provident fund system, as it is better for the risks to be spread among its members, rather than in the government. But, it is also important that the provident fund be invested efficiently to earn a market rate of return for its members, and the administration expenses, including the cost of managing the investments, be kept at a low level (which is possible due to the economy of scale).

The Central Provident Fund in Singapore started on the right track, but over the years, it has grown to be too complicated. It is time to move back to its basics.

Better to have small businesses

A good economic system has many small businesses that compete in the market to offer good service at a transparent price. You can see many good examples in the retail trade, food and in hair dressing, tailoring and other personal services.

Large businesses are needed for manufacturing, but the distribution can be done through small retailers. This is the model for the sale of household and electronic products.

It should be possible for banking services to be operated by small banks who can serve the customers in the community for banking services. There is no need for each bank to develop an expensive computer system, as they can tap into a common system, similar to the arrangement where the Singapore Exchange provide a centralized service to the stockbrokers.

The argument that we need big banks to be able to afford the investment in computer system to operate efficiently is flawed. It has led to large banks increasing their profits to excessive levels, by charging high fees to customers, and also engaging in risky trading. We now have the situation of "too big to fail" when banks make big losses on their large bets - which has to happen from time to time.  We need to make banks smaller, so that they can be subject to the discipline of the market. See http://www.cnbc.com//id/45307122

There is a similarity with the operations of large transport and telephone companies. There is a similar argument that they need to be large to afford the investment in the infrastructure. It is easy for these large businesses to abuse their pricing power to make big profits. A better approach is for the infrastructure to be developed and owned by the state and rented out to the service providers.

The current business model in many countries, including Singapore, favors big businesses, but it also leads to excessive profit margins for these businesses - leading to higher cost for consumers. We need to have a new economic and business model for the future.

Scam - invest in gold bars

This is a way for the scammer to mark up the price of the gold bar by 23%, without the investor realizing it. The scammer distracts the investors by offering a complicated structure of interest payment, buy back guarantee and delivery of the physical gold bar. The investor overlooked checking the real price of gold. http://tankinlian.com/admin/file.aspx?id=186

Live trading account shows profit

There were a few comments about a particular forex trainer who was able to impress the audience with a live trading account that showed profit. If I want to deceive people, I can also show a live trading account that shows profit for the previous day, and I can do it on any day. How do I do this impressive show? Make a guess. It is not difficult - for people who knows how to perform magic!

Positive experience with online website

I have made online bookings with a few airlines. My best experience is with Sri Lanka Airlines. Their website is simple. I completed the online booking with little effort and quite quickly. They focused on what needed to be done, and did not distract the customer with options that are not really needed.

Simplify and make life better

I have quoted a few examples about how things are being done in Singapore that lead to a stressful life ,  unnecessary work and expenses. They are caused by blind adherence to rules, disregard for the trouble caused to the other party and excessive focus on security (even for small amounts or risks). I have also suggested some practical ways to simplify these processes for the benefit of the customers and the staff.

We should be ready to ask "Can we simplify the way that things can be done, to make life easier for all?" I like to ask my readers to help identify other issues and suggest how they can be simplified.