SAF: Stingy and Fumbling?
Objective:
To provide NSmen a more equitable remuneration/ allowance package as the current package is outdated, antiquated and thus plain unfair to unemployed NSmen.
Background:
According to 'http://www.mindef.gov.sg/imindef/mindef_websites/topics/nsmen/admin/PayMatters.html',
“As an Operationally Ready NSman, you will receive Service Pay for the entire period of NS activity that you attend. An NSman who suffers a loss in his civilian income as a result of having to attend NS activities can claim make-up pay (MUP) (i.e. the difference between employment income and service pay) from MINDEF.”
However, I believe that this policy is flawed in that it excessively penalizes certain groups of NSmen such as:
'NSman who is employed and on leave/no pay leave during NS training.'
'NSman who is unemployed or is a student.'
SAF's argument being:
“NSman is not eligible to claim make-up pay, as he does not suffer any loss in civilian income during the period of his NS training. He will be paid service pay.”
The Flaw:
The flaw being the omitted balance between the fact that reservist activities are by nature interruptive, restrictive and demanding both physically and mentally, and the fact that private employment income is often a flawed estimate of the NSman's worth/ contribution.
Many thus end up underpaid/ overpaid simply by virtue of their life circumstance. This is plain unfair given the fact that all NSmen need comply to the same, exacting physical and mental requirements.
Evidence of the NSmen's demoralization, dissatisfaction with the current system is plain to see on the internet. Public forums that reflect popular mentality towards seeking medical excuse towards 'earning' vocation and deployment downgrades remain an embarrassment.
'Medical FAQs', http://www.sgforums.com/forums/1390/topics/79306 , with over 1,800 posts since 2004 exists to help the poor, uninformed NSman navigate his way the ever onerous and demanding 'National Service Training System (NSTS)':
National Service Training System http://www.mindef.gov.sg/imindef/mindef_websites/topics/nsmen/opsready/NSTS.html:
“Before each ICT, you should train yourself up physically and be mentally prepared for the tough training that you are to undergo. If you fail to meet the required performance standards, you will be subjected to corrective training e.g. Your Unit Commander may decide to serve you additional NS call-up for Make-up Training (MUT).... ”
- Need I say more?
'In Defense of Defense' http://forums.delphiforums.com/sunkopitiam/messages?msg=16842.1: details a citizen soldier's experiences and observations. (Jan09)
On national service : http://forums.delphiforums.com/sunkopitiam/messages?msg=12474.1 – reflections upon completion of one's NS training cycle. (Nov08)
'What the Gahmen owes you for NS' : http://forums.delphiforums.com/sunkopitiam/messages?msg=16842.1 a tongue in cheek description of 'list of NSF jobs and their real world equivalent'. (Nov08)
My Suggestion:
The Service pay of NSmen should equal what regulars of similar rank , vocation and appointment should earn (pro-rata) as the rigors of reservist training equal or exceed that which a regular soldier in such vocation faces. One might argue for MUP to be reduced for high income earners to balance costs but rumor I last heard was that SAF tries not to recall high income NSmen anyway.
Conclusions:
Sure, defense budget may go up, but our gov has never been one to stint on it any way; maybe the way out is for regular officers to improve their leadership and communication abilities, so reservist's training can be more effectively run.
Perhaps more a carrot then a stick approach should be used now that NSmen and their families are more aware of their rights and responsibilities as a recent parliamentary debates and court rulings show (below); fair reimbursement shouldn't only apply to dead or injured servicemen.
At least, such a peg method for 'service pay' will motivate more low education holders to strive during their NSF period, knowing that they won't be prejudiced against when called up during their later study/ work periods. It might in fact mean more work and more pay for their 2 weeks reservist stint, a welcome break to celebrate one's citizenry responsibilities. (**Failure to perform to standard would entail MUT paid at NSF service pay rates**).
Reply by Minister Teo Chee Hean on Compensation for Dead and Injured Servicemen: http://www.mindef.gov.sg/imindef/news_and_events/nr/2007/jul/17jul07_nr.html : “For the additional lump sum compensation, MINDEF uses the principles applied by civil courts to determine compensation amounts. This is a fair system based on prevailing practices and awards. ”
Parents: It was our last resort (TNP:23.2.09): http://www.asiaone.com/News/AsiaOne%2BNews/Singapore/Story/A1Story20090223-123888.html, 'Many people have told us that we're very brave to sue the Government,' Madam Hor, a bank teller, said in Mandarin, 'especially when we're not rich. But I believe anyone in our position would have done the same.
Have a nice day :).
Adapted from http://www.youngpap.org.sg/phpbb/viewtopic.php?t=24863 ,
Showing posts with label Governance (Policy). Show all posts
Showing posts with label Governance (Policy). Show all posts
Wednesday, February 25, 2009
Sunday, December 9, 2007
S'poreans live longer but suffer 8 years of poor health
"while Singapore does well on life expectancy charts, a different picture emerges when good health is tracked. ...
... (MOH) study confirmed that a lot of suffering and premature deaths come from diseases that could be prevented - such as heart attacks, stroke and diabetes. Some cancers too could be caught early."
Home > Most Read Stories Dec 3, 2007
S'poreans live longer but suffer 8 years of poor health
MOH study shows main causes of sickness are diseases that could be prevented early on
By Salma Khalik, Health Correspondent IF YOU needed another reason to lead a healthy lifestyle, here it is: A study shows that Singaporeans may be living longer now, but they are also sick for more years than people in some other countries.
The main culprits are heart disease and stroke, cancer, diabetes and even mental illness.
Now, the average Singapore woman should live to 81.8, but she will spend eight of those years ill or disabled. Men too will spend eight of their 78 years in poor health.
So while Singapore does well on life expectancy charts, a different picture emerges when good health is tracked.
The Ministry of Health study confirmed that a lot of suffering and premature deaths come from diseases that could be prevented - such as heart attacks, stroke and diabetes. Some cancers too could be caught early.
The prevalence of such diseases also suggests that more should be done to tell people what they can do to save themselves from becoming ill, said Dr Lam Pin Min, a member of the Government Parliamentary Committee for Health.
He called for more public education on how these ailments can be prevented, and screening to catch problems like diabetes and cancer early.
He added: 'With early detection of diseases, prompt medical treatment can hopefully minimise illness and medical complications.'
But health authorities can only do so much, argued unionist and Health GPC head Madam Halimah Yacob. People must take ownership of their health if they want to keep such illnesses at bay.
Her advice: 'Go for regular screening, eat more vegetables, less salt and do more exercise. That could cut the number of years you suffer from ill health.'
Dr Derrick Heng, deputy director of the Ministry of Health's non-communicable diseases branch said the study will guide the authorities on how to spend health resources.
But though it 'shines the torch' on diseases that cause the most suffering, the ministry will have to see which actually benefit from preventive measures.
The study will be repeated every three years, to track if the main causes of disability change, or are reduced, as the ministry puts in more effort to tackle them.
A surprising finding was how mental disorders count as much as diabetes and stroke for the wasted years. Mental health is getting a boost as the ministry has committed $80 million over the next five years to improving it.
Zooming in on problem areas could help Singapore catch up with countries that fare best - such as Japan, the top country in the world for long, healthy lives.
Japanese women live an average of 77.7 years in good health, compared to only 71.3 years for women here. Japanese men have 72.3 years of good health, compared to 68.8 years for Singapore men.
The ministry has already made the treatment and prevention of chronic disease a priority. People can now use money previously reserved for hospitalisation to treat diabetes, high cholesterol, high blood pressure and stroke.
The intention is to treat those conditions early before complications set in.
Unfortunately the programme has not been popular, said Madam Halimah. She suggested expanding the use of Medisave money to include an annual health check.
Men should also take a leaf from their wives.
Women all over the world live longer and healthier lives. The World Health Organisation (WHO) attributes it to their smoking less, exercising more and being more health conscious than men. As for Japan, its explanation is the low rate of cardiovascular diseases comes from their high-in-fish diets.
Madam Halimah said: 'We should also start eating more fish and less meat.'
salma@sph.com.sg
http://www.straitstimes.com/Free/Story/STIStory_182755.html?vgnmr=1
... (MOH) study confirmed that a lot of suffering and premature deaths come from diseases that could be prevented - such as heart attacks, stroke and diabetes. Some cancers too could be caught early."
Home > Most Read Stories Dec 3, 2007
S'poreans live longer but suffer 8 years of poor health
MOH study shows main causes of sickness are diseases that could be prevented early on
By Salma Khalik, Health Correspondent IF YOU needed another reason to lead a healthy lifestyle, here it is: A study shows that Singaporeans may be living longer now, but they are also sick for more years than people in some other countries.
The main culprits are heart disease and stroke, cancer, diabetes and even mental illness.
Now, the average Singapore woman should live to 81.8, but she will spend eight of those years ill or disabled. Men too will spend eight of their 78 years in poor health.
So while Singapore does well on life expectancy charts, a different picture emerges when good health is tracked.
The Ministry of Health study confirmed that a lot of suffering and premature deaths come from diseases that could be prevented - such as heart attacks, stroke and diabetes. Some cancers too could be caught early.
The prevalence of such diseases also suggests that more should be done to tell people what they can do to save themselves from becoming ill, said Dr Lam Pin Min, a member of the Government Parliamentary Committee for Health.
He called for more public education on how these ailments can be prevented, and screening to catch problems like diabetes and cancer early.
He added: 'With early detection of diseases, prompt medical treatment can hopefully minimise illness and medical complications.'
But health authorities can only do so much, argued unionist and Health GPC head Madam Halimah Yacob. People must take ownership of their health if they want to keep such illnesses at bay.
Her advice: 'Go for regular screening, eat more vegetables, less salt and do more exercise. That could cut the number of years you suffer from ill health.'
Dr Derrick Heng, deputy director of the Ministry of Health's non-communicable diseases branch said the study will guide the authorities on how to spend health resources.
But though it 'shines the torch' on diseases that cause the most suffering, the ministry will have to see which actually benefit from preventive measures.
The study will be repeated every three years, to track if the main causes of disability change, or are reduced, as the ministry puts in more effort to tackle them.
A surprising finding was how mental disorders count as much as diabetes and stroke for the wasted years. Mental health is getting a boost as the ministry has committed $80 million over the next five years to improving it.
Zooming in on problem areas could help Singapore catch up with countries that fare best - such as Japan, the top country in the world for long, healthy lives.
Japanese women live an average of 77.7 years in good health, compared to only 71.3 years for women here. Japanese men have 72.3 years of good health, compared to 68.8 years for Singapore men.
The ministry has already made the treatment and prevention of chronic disease a priority. People can now use money previously reserved for hospitalisation to treat diabetes, high cholesterol, high blood pressure and stroke.
The intention is to treat those conditions early before complications set in.
Unfortunately the programme has not been popular, said Madam Halimah. She suggested expanding the use of Medisave money to include an annual health check.
Men should also take a leaf from their wives.
Women all over the world live longer and healthier lives. The World Health Organisation (WHO) attributes it to their smoking less, exercising more and being more health conscious than men. As for Japan, its explanation is the low rate of cardiovascular diseases comes from their high-in-fish diets.
Madam Halimah said: 'We should also start eating more fish and less meat.'
salma@sph.com.sg
http://www.straitstimes.com/Free/Story/STIStory_182755.html?vgnmr=1
Double whammy for low-income households
Home > ST Forum > Online Story
Dec 10, 2007
Double whammy for low-income households
IN THE midst of the current discussion over the increasing rate of inflation in Singapore, one issue has been left out.
This issue is especially germane, since higher inflation affects the less-well-off in Singapore society much more than those who are better off.
I am referring to the declining real, as opposed to the nominal, interest rate, for savings in Singapore. The gap between the two is caused by the recent increase in inflation, combined with a stagnation in the interest rate offered by financial institutions here.
According to monthly data available from the Monetary Authority of Singapore's (MAS) website (https://secure.sgs.gov.sg/apps/msbs/interestRatesOfBanksAndFinanceCompaniesForm.jsp), 12-month fixed deposit rates of banks have averaged 0.92 per cent (over the last five years, that is, 2002-2006) and 2.05 per cent (over the last 10 years), 2.56 per cent (over the last 15 years) and 3.02 per cent (over the last 20 years).
The bank savings rate has averaged 0.31 per cent (over the last five years), 1.12 per cent (over the last 10 years), 1.52 per cent (over the last 15 years) and 1.94 per cent (over the last 20 years). The picture is similar for finance companies.
Annual inflation data from the SingStats website (http://www.singstat.gov.sg) shows that the average was 0.7 per cent (over the last five years), 0.7 per cent (over the last 10 years), 1.2 per cent (over the last 15 years), and 1.5 per cent (over the last 20 years). This year, it is expected to be between 3 and 4 per cent.
Thus, low-income households have suffered doubly in the current Singapore economy: their purchasing power has fallen (because of higher inflation) while their ability to grow their savings has declined. It is doubtful whether next year's increase in inflation will lead to any rise in interest rates.
In addition, while higher-income households are aware of alternative options for increasing their returns, such as REITs, ETFs and commodity futures which have boomed in recent past, lower-income households are unable to take advantage of such financial innovations.
It's a situation full of despair for low-income households - while they are asked to spend more time enhancing their skills so they can earn more, whatever savings they do have or put aside are steadily being eroded.
Harminder Singh
http://www.straitstimes.com/ST%2BForum/Online%2BStory/STIStory_184770.html
Latest comments (#1)newsstorm at Mon Dec 10 07:23:30 SGT 2007:
Plus, the richest 10% - 20% people in Singapore enjoy doubling, tripled or four-fold increase of their fixed assets like private properties and commercial properties and many made millions from en-bloc sales. HDB dwellers don't enjoy this at all. The rich also have their transport cost lowered. Lower import tax and road tax lead to the low cost of absolute car price over the years, a Japanese saloon car cost about $100,000 more than 10 years ago but now cost about $60,000. But public transport costs keep on going up and up. It pays to be a rich person in Singapore but the poor get to catch up with ever-increasing costs of living.
------
(#2)CallMeKP at Mon Dec 10 07:48:37 SGT 2007:
Dear Editor,
This letter should have been moved to the PRINTED VERSION. As a public media, you need to continually highlight the plights of the suffering average citizens.
Thanks
Dec 10, 2007
Double whammy for low-income households
IN THE midst of the current discussion over the increasing rate of inflation in Singapore, one issue has been left out.
This issue is especially germane, since higher inflation affects the less-well-off in Singapore society much more than those who are better off.
I am referring to the declining real, as opposed to the nominal, interest rate, for savings in Singapore. The gap between the two is caused by the recent increase in inflation, combined with a stagnation in the interest rate offered by financial institutions here.
According to monthly data available from the Monetary Authority of Singapore's (MAS) website (https://secure.sgs.gov.sg/apps/msbs/interestRatesOfBanksAndFinanceCompaniesForm.jsp), 12-month fixed deposit rates of banks have averaged 0.92 per cent (over the last five years, that is, 2002-2006) and 2.05 per cent (over the last 10 years), 2.56 per cent (over the last 15 years) and 3.02 per cent (over the last 20 years).
The bank savings rate has averaged 0.31 per cent (over the last five years), 1.12 per cent (over the last 10 years), 1.52 per cent (over the last 15 years) and 1.94 per cent (over the last 20 years). The picture is similar for finance companies.
Annual inflation data from the SingStats website (http://www.singstat.gov.sg) shows that the average was 0.7 per cent (over the last five years), 0.7 per cent (over the last 10 years), 1.2 per cent (over the last 15 years), and 1.5 per cent (over the last 20 years). This year, it is expected to be between 3 and 4 per cent.
Thus, low-income households have suffered doubly in the current Singapore economy: their purchasing power has fallen (because of higher inflation) while their ability to grow their savings has declined. It is doubtful whether next year's increase in inflation will lead to any rise in interest rates.
In addition, while higher-income households are aware of alternative options for increasing their returns, such as REITs, ETFs and commodity futures which have boomed in recent past, lower-income households are unable to take advantage of such financial innovations.
It's a situation full of despair for low-income households - while they are asked to spend more time enhancing their skills so they can earn more, whatever savings they do have or put aside are steadily being eroded.
Harminder Singh
http://www.straitstimes.com/ST%2BForum/Online%2BStory/STIStory_184770.html
Latest comments (#1)newsstorm at Mon Dec 10 07:23:30 SGT 2007:
Plus, the richest 10% - 20% people in Singapore enjoy doubling, tripled or four-fold increase of their fixed assets like private properties and commercial properties and many made millions from en-bloc sales. HDB dwellers don't enjoy this at all. The rich also have their transport cost lowered. Lower import tax and road tax lead to the low cost of absolute car price over the years, a Japanese saloon car cost about $100,000 more than 10 years ago but now cost about $60,000. But public transport costs keep on going up and up. It pays to be a rich person in Singapore but the poor get to catch up with ever-increasing costs of living.
------
(#2)CallMeKP at Mon Dec 10 07:48:37 SGT 2007:
Dear Editor,
This letter should have been moved to the PRINTED VERSION. As a public media, you need to continually highlight the plights of the suffering average citizens.
Thanks
Tuesday, November 13, 2007
Reuters: Singapore income gap widens with economic boom
3rd world Government for a 1st world people?
"...Singapore has an income inequality profile more in line with third-world countries..."
"...Singapore has an income inequality profile more in line with third-world countries..."
"...Singapore's Gini coefficient, ... ... is now in league with the Philippines (46.1) and Guatemala (48.3), and worse than China (44.7), data from Singapore's Household Survey and the World Bank show. ..."
Singapore income gap widens with economic boom
Monday, November 12, 2007
By Melanie Lee, Reuters
SINGAPORE -- Carol John, 27, doesn't own a bed. Every night she sleeps on thin mattresses which she shares with her three young children. Outside her one-room flat, a smell of sewage lingers in the common corridor.Just a few kilometers away, on Singapore's Sentosa island, Madhupati Singhania relaxes on his US$435,000 yacht berthed at the city-state's swanky One 15 Marina Club.
Income inequality is nothing new in free-market Singapore, but two years of blistering economic growth and a government policy of attracting wealthy expatriates have created a new class of super-rich, while a string of price increases for everything from bread to bus fares have made life harder for the poor.
"I can't save anything, it's so difficult for me," John told Reuters. John, who is unemployed, relies on her husband's S$600 (US$420) monthly salary and a S$100 government handout.
"We don't benefit at all from the economy. As far as I know, my husband's pay hasn't gone up," she said.
Singapore's economy is firing on all cylinders, with a booming construction sector, record tourist arrivals and a fast-growing financial sector all contributing to a gross domestic product set to grow nearly 8 percent in 2007. But the rising tide is not lifting every boat.
The proportion of Singapore residents earning less than S$1,000 (US$690) a month rose to 18 percent last year, from 16 percent in 2002, central bank data released late last month show.
At the same time, the proportion of those earning S$8,000 and above rose from 4.7 percent to 6 percent in the same period.
"When a country becomes richer, you tend to see a widening of income inequality. Over the last few years it has been worse," said econometrics professor Anthony Tay at SMU university.
Despite sporting a first-world GDP per capita of US$29,000 -- second only to Japan in Asia -- Singapore has an income inequality profile more in line with third-world countries. Singapore's Gini coefficient, a measure of income inequality, has worsened from 42.5 in 1998 to 47.2 in 2006, and is now in league with the Philippines (46.1) and Guatemala (48.3), and worse than China (44.7), data from Singapore's Household Survey and the World Bank show.
Other wealthy Asian nations such as Japan, Korea and Taiwan have more European-style Ginis of 24.9, 31.6 and 32.6. CIMB-GK Research economist Song Seng Wun believes that growth itself partly explains the widening income gap.
"In an environment where growth is huge, there are lots of opportunities for risk takers, and inevitably, you will get this widening (of the income gap)," he said, adding that those in stable jobs will also benefit, but to a lesser extent.
Opportunity is what attracted Singhania to Singapore. He intends to buy a new 47-foot yacht for US$1.3 million.
"You've got everything you want in Singapore. You want to buy a fast car, you want to buy a big boat, you want to buy an aeroplane, whatever you need, you can get in this country."
http://www.chinapost.com.tw/business/2007/11/12/130587/Singapore-income.htm
Singapore income gap widens with economic boom
Monday, November 12, 2007
By Melanie Lee, Reuters
SINGAPORE -- Carol John, 27, doesn't own a bed. Every night she sleeps on thin mattresses which she shares with her three young children. Outside her one-room flat, a smell of sewage lingers in the common corridor.Just a few kilometers away, on Singapore's Sentosa island, Madhupati Singhania relaxes on his US$435,000 yacht berthed at the city-state's swanky One 15 Marina Club.
Income inequality is nothing new in free-market Singapore, but two years of blistering economic growth and a government policy of attracting wealthy expatriates have created a new class of super-rich, while a string of price increases for everything from bread to bus fares have made life harder for the poor.
"I can't save anything, it's so difficult for me," John told Reuters. John, who is unemployed, relies on her husband's S$600 (US$420) monthly salary and a S$100 government handout.
"We don't benefit at all from the economy. As far as I know, my husband's pay hasn't gone up," she said.
Singapore's economy is firing on all cylinders, with a booming construction sector, record tourist arrivals and a fast-growing financial sector all contributing to a gross domestic product set to grow nearly 8 percent in 2007. But the rising tide is not lifting every boat.
The proportion of Singapore residents earning less than S$1,000 (US$690) a month rose to 18 percent last year, from 16 percent in 2002, central bank data released late last month show.
At the same time, the proportion of those earning S$8,000 and above rose from 4.7 percent to 6 percent in the same period.
"When a country becomes richer, you tend to see a widening of income inequality. Over the last few years it has been worse," said econometrics professor Anthony Tay at SMU university.
Despite sporting a first-world GDP per capita of US$29,000 -- second only to Japan in Asia -- Singapore has an income inequality profile more in line with third-world countries. Singapore's Gini coefficient, a measure of income inequality, has worsened from 42.5 in 1998 to 47.2 in 2006, and is now in league with the Philippines (46.1) and Guatemala (48.3), and worse than China (44.7), data from Singapore's Household Survey and the World Bank show.
Other wealthy Asian nations such as Japan, Korea and Taiwan have more European-style Ginis of 24.9, 31.6 and 32.6. CIMB-GK Research economist Song Seng Wun believes that growth itself partly explains the widening income gap.
"In an environment where growth is huge, there are lots of opportunities for risk takers, and inevitably, you will get this widening (of the income gap)," he said, adding that those in stable jobs will also benefit, but to a lesser extent.
Opportunity is what attracted Singhania to Singapore. He intends to buy a new 47-foot yacht for US$1.3 million.
"You've got everything you want in Singapore. You want to buy a fast car, you want to buy a big boat, you want to buy an aeroplane, whatever you need, you can get in this country."
http://www.chinapost.com.tw/business/2007/11/12/130587/Singapore-income.htm
Tuesday, October 23, 2007
Demand-management policies required
Home > ST Forum > Story
Oct 23, 2007
SOARING PROPERTY PRICES
Demand-management policies required
AT A Singapore Economic Policy Forum organised by the Department of Economics of the National University of Singapore (NUS) on Oct 18, I presented a paper with the title, 'Singapore's property market and the macroeconomy'. This was reported in The Straits Times the following day under the headline, 'No bubble in property market: NUS study'.
The title of the report may have created the misperception that current increases in property prices are all fundamental and policy intervention is not necessary. Some clarification is necessary with regard to the findings of the research and its policy implications.
In our analysis, the long-run demand for housing is determined by the growth of resident population, foreign population, per-capita disposable income, per-capita CPF balances (a proxy for financial wealth) and an adjustment factor to account for what is known as the user cost of housing. If the housing stock grows in line with the growth of the long-run demand, house prices should stay the same in the long run.
The current surge in house prices is largely a result of the housing shortage that was caused by the crash of the price bubble in 1996 and the prolonged slump in the property sector. Large imbalances in demand and supply create conditions for bubbles and subsequent crashes.
Based on data available up to the second quarter of this year, our model predicted that house prices should increase by 18 per cent in 2007 purely due to the fundamental demand-supply imbalance. We know that house prices by now have increased well above this rate. In the third quarter of this year the average price level had gone up by at least 27 per cent over the third quarter of 2006. Price persistence (panic buying when prices rise and waiting when prices fall) and speculation are the key drivers of the short-run price acceleration.
Although price bubbles are usually attributed to speculation, large gyrations in property prices are unhealthy for the economy. As housing supply cannot keep pace with demand because of construction delays and land scarcity, demand-management policies, especially with respect to investment demand, have to be in place.
Associate Prof Tilak Abeysinghe
http://www.straitstimes.com/ST%2BForum/Story/STIStory_169583.html
Oct 23, 2007
SOARING PROPERTY PRICES
Demand-management policies required
AT A Singapore Economic Policy Forum organised by the Department of Economics of the National University of Singapore (NUS) on Oct 18, I presented a paper with the title, 'Singapore's property market and the macroeconomy'. This was reported in The Straits Times the following day under the headline, 'No bubble in property market: NUS study'.
The title of the report may have created the misperception that current increases in property prices are all fundamental and policy intervention is not necessary. Some clarification is necessary with regard to the findings of the research and its policy implications.
In our analysis, the long-run demand for housing is determined by the growth of resident population, foreign population, per-capita disposable income, per-capita CPF balances (a proxy for financial wealth) and an adjustment factor to account for what is known as the user cost of housing. If the housing stock grows in line with the growth of the long-run demand, house prices should stay the same in the long run.
The current surge in house prices is largely a result of the housing shortage that was caused by the crash of the price bubble in 1996 and the prolonged slump in the property sector. Large imbalances in demand and supply create conditions for bubbles and subsequent crashes.
Based on data available up to the second quarter of this year, our model predicted that house prices should increase by 18 per cent in 2007 purely due to the fundamental demand-supply imbalance. We know that house prices by now have increased well above this rate. In the third quarter of this year the average price level had gone up by at least 27 per cent over the third quarter of 2006. Price persistence (panic buying when prices rise and waiting when prices fall) and speculation are the key drivers of the short-run price acceleration.
Although price bubbles are usually attributed to speculation, large gyrations in property prices are unhealthy for the economy. As housing supply cannot keep pace with demand because of construction delays and land scarcity, demand-management policies, especially with respect to investment demand, have to be in place.
Associate Prof Tilak Abeysinghe
http://www.straitstimes.com/ST%2BForum/Story/STIStory_169583.html
Sunday, October 21, 2007
Sanctions against Myanmar will be counter-productive: PM Lee
[treating the morally bankrupt] (artc. below) ... …whether you want to do petty indignities to individuals, which is really against human nature.
'Somebody who is sick, he wants to come to Singapore, he needs treatment and you're telling me that I shouldn't treat him because he is not a good man? It goes against the Hippocratic oath of doctors.'…
The temptation of convenience, the path of disaster.
Who really runs this country, is it PM Lee or the Drs (Hippocratic oath)? Admitting despotic rulers to SG govt hosp? "Myanmar junta leader's family reportedly in Singapore "
To promote medical tourism the Hippocratic oath of doctors is quoted,
And during elections, then buying votes becomes okay… …
Mana ada moral mandate?
Sanctions against Myanmar will be counter-productive: PM Lee
By Wong Siew Ying, Channel NewsAsia Posted: 05 October 2007 2045 hrs
SINGAPORE: Prime Minister Lee Hsien Loong has said that sanctions against Myanmar will be counter-productive.
He also stressed that ASEAN alone cannot solve the problem in Myanmar, and called on the international community to weigh in as well.
Mr Lee said this in an interview with the CNN, which was aired on Friday evening.
He was responding to the presenter who asked if ASEAN could do more besides issuing strong statements against the unrest in Myanmar.
ASEAN has to take a clear stand on Myanmar because what happens there affects the group's reputation, said PM Lee.
What ASEAN wishes to see is developments that will lead progressively to a Myanmar government that has more legitimacy at home and greater acceptance internationally, added Mr Lee.
But ASEAN, he stressed, does not have the leverage to solve the problems in Myanmar.
Mr Lee also explained why economic sanctions against the military-ruled country may not be productive.
He said: "First of all, this is a country which wants to isolate itself from the world, so they are not afraid of you cutting them off.
"Secondly, if you want to have sanctions, it cannot just be Singapore or even ASEAN, but all of the countries in the world have to do that, and that includes the Western countries, investors in Myanmar and its neighbours like China with big stake in Myanmar.
"And thirdly, if you do have sanction and it worked, I think the people who will be hurt by the sanctions will not be the regime or the SPDC (State Peace and Development Council), the government, but the people of Myanmar, so it will be counter productive."
Mr Lee added that the United Nations will play an important role, and the recent visit to Myanmar by UN special envoy Ibrahim Gambari is the first step to improving the situation there.
Mr Lee also responded to a question on whether Singapore should prevent members of the Myanmar government from coming to Singapore for medical treatment.
He said: "I think we have to decide whether we're trying to influence the policy of a government or whether you want to do petty indignities to individuals, which is really against human nature.
"Somebody who is sick, he wants to come to Singapore, he needs treatment and you're telling me that I shouldn't treat him because he is not a good man? It goes against the Hippocratic oath of doctors."
Separately, Mr Lee spoke on the phone with UN Secretary-General Ban Ki-moon on Friday.
The UN chief invited Singapore, in its capacity as the current ASEAN chair, to make a statement at a UN Security Council meeting on developments in Myanmar.
PM Lee told Mr Ban that he has written to China, India and Japan to work together with ASEAN and the UN to help the parties in Myanmar find a way towards national reconciliation. - CNA/ir
http://www.channelnewsasia.com/stories/singaporelocalnews/view/304073/1/.html
[http://disgruntledsporean.blogspot.com/2007/10/not-treating-burmese-murderous-junta-is.html#comments : another view pt.]
'Somebody who is sick, he wants to come to Singapore, he needs treatment and you're telling me that I shouldn't treat him because he is not a good man? It goes against the Hippocratic oath of doctors.'…
The temptation of convenience, the path of disaster.
Who really runs this country, is it PM Lee or the Drs (Hippocratic oath)? Admitting despotic rulers to SG govt hosp? "Myanmar junta leader's family reportedly in Singapore "
To promote medical tourism the Hippocratic oath of doctors is quoted,
And during elections, then buying votes becomes okay… …
Mana ada moral mandate?
Sanctions against Myanmar will be counter-productive: PM Lee
By Wong Siew Ying, Channel NewsAsia Posted: 05 October 2007 2045 hrs
SINGAPORE: Prime Minister Lee Hsien Loong has said that sanctions against Myanmar will be counter-productive.
He also stressed that ASEAN alone cannot solve the problem in Myanmar, and called on the international community to weigh in as well.
Mr Lee said this in an interview with the CNN, which was aired on Friday evening.
He was responding to the presenter who asked if ASEAN could do more besides issuing strong statements against the unrest in Myanmar.
ASEAN has to take a clear stand on Myanmar because what happens there affects the group's reputation, said PM Lee.
What ASEAN wishes to see is developments that will lead progressively to a Myanmar government that has more legitimacy at home and greater acceptance internationally, added Mr Lee.
But ASEAN, he stressed, does not have the leverage to solve the problems in Myanmar.
Mr Lee also explained why economic sanctions against the military-ruled country may not be productive.
He said: "First of all, this is a country which wants to isolate itself from the world, so they are not afraid of you cutting them off.
"Secondly, if you want to have sanctions, it cannot just be Singapore or even ASEAN, but all of the countries in the world have to do that, and that includes the Western countries, investors in Myanmar and its neighbours like China with big stake in Myanmar.
"And thirdly, if you do have sanction and it worked, I think the people who will be hurt by the sanctions will not be the regime or the SPDC (State Peace and Development Council), the government, but the people of Myanmar, so it will be counter productive."
Mr Lee added that the United Nations will play an important role, and the recent visit to Myanmar by UN special envoy Ibrahim Gambari is the first step to improving the situation there.
Mr Lee also responded to a question on whether Singapore should prevent members of the Myanmar government from coming to Singapore for medical treatment.
He said: "I think we have to decide whether we're trying to influence the policy of a government or whether you want to do petty indignities to individuals, which is really against human nature.
"Somebody who is sick, he wants to come to Singapore, he needs treatment and you're telling me that I shouldn't treat him because he is not a good man? It goes against the Hippocratic oath of doctors."
Separately, Mr Lee spoke on the phone with UN Secretary-General Ban Ki-moon on Friday.
The UN chief invited Singapore, in its capacity as the current ASEAN chair, to make a statement at a UN Security Council meeting on developments in Myanmar.
PM Lee told Mr Ban that he has written to China, India and Japan to work together with ASEAN and the UN to help the parties in Myanmar find a way towards national reconciliation. - CNA/ir
http://www.channelnewsasia.com/stories/singaporelocalnews/view/304073/1/.html
[http://disgruntledsporean.blogspot.com/2007/10/not-treating-burmese-murderous-junta-is.html#comments : another view pt.]
PM Lee says countries worldwide respect and admire Singapore's proven system
LHL: It's OK to buy votes...
"Right now we have Low Thia Khiang, Chiam See Tong, Steve Chia. We can deal with them. Suppose you had 10, 15, 20 opposition members in Parliament. ... ...I'm going to spend all my time thinking what's the right way to fix them, to buy my supporters votes, how can I solve this week's problem and forget about next year's challenges?"
PM Lee says countries worldwide respect and admire Singapore's proven system
By Sharon Tong/S. Ramesh, Channel NewsAsia Posted: 03 May 2006 1839 hrs
SINGAPORE : Prime Minister Lee Hsien Loong says Singapore is at the top of its game because of a strong political system and quality leadership.
Speaking at the first lunchtime election rally in Singapore in nine years, Mr Lee says the PAP has a proven system that works.
He says countries the world over respect and admire Singapore's system.
Mr Lee says what the PAP wants for Singapore is something special and precious that's worth fighting for.
So Singaporeans must put their hearts and souls into working together as a team to realise and create this special Singapore.
Raffles Place - in the heart of Singapore's financial district - was the venue of the election's first lunchtime rally.
Lunchtime rallies, which were absent in the last General Election, have made a comeback this year.
The target is to reach out to the professionals, managers, executives and businessmen.
Nine PAP candidates took to the stage to explain the importance of maintaining good policies and programmes for Singapore, and why the PAP is the right party to deliver the right essentials.
Mr Lee says: "Deep capabilities in our population, in our government, in our leadership and deep values in our people to understand, to support, to work together, to make it work. Our system is different, it's good, it's good for Singapore and it works."
He says some Singaporeans want a more open, multi-party system.
Mr Lee says the opposition parties are capitalising on this by asking for their votes, not because of their abilities or policies, but because then, the opposition would exist.
But he questioned if this would make things better for Singapore.
Mr Lee says: "What is the opposition's job? It's not to help the PAP do a better job ... because if they help the PAP do a better job, you're going to vote for me again and they're going to be out of a job for a long time. So their job is to make life miserable for me.
"Right now we have Low Thia Khiang, Chiam See Tong, Steve Chia. We can deal with them. Suppose you had 10, 15, 20 opposition members in Parliament. Instead of spending my time thinking what is the right policy for Singapore, I'm going to spend all my time thinking what's the right way to fix them, to buy my supporters votes, how can I solve this week's problem and forget about next year's challenges?"
Mr Lee says while any Singaporean can enter politics, the quality needed to get elected must be very high.
He says this is why the PAP has assembled a strong, national team with a long term view - one that would work together and fight to realise its vision for Singapore.
At the rally, Mr Lee also named four potential office bearers, whom he will appoint after the elections.
They are Grace Fu, Lee Yi Shyan, Masagos Zulkifli and Lui Tuck Yew.
Mr Lee says if they are elected, they will be appointed parliamentary secretaries and ministers of state, adding that some of them have potential to go higher.
He described them as "big people with broad shoulders" who could deal with big issues and would serve the people well.
As to whether there would be more office-holders, Mr Lee says only time will tell as he learns more about the new candidates and their abilities.
Earlier, Mr Lee says he is especially proud of the bicultural candidates - those who are equally comfortable speaking Chinese and English, like former IE Singapore CEO Lee Yi Shyan. - CNA/de
http://www.channelnewsasia.com/stories/singaporelocalnews/view/206313/1/.html
PM Lee says countries worldwide respect and admire Singapore's proven system
By Sharon Tong/S. Ramesh, Channel NewsAsia Posted: 03 May 2006 1839 hrs
SINGAPORE : Prime Minister Lee Hsien Loong says Singapore is at the top of its game because of a strong political system and quality leadership.
Speaking at the first lunchtime election rally in Singapore in nine years, Mr Lee says the PAP has a proven system that works.
He says countries the world over respect and admire Singapore's system.
Mr Lee says what the PAP wants for Singapore is something special and precious that's worth fighting for.
So Singaporeans must put their hearts and souls into working together as a team to realise and create this special Singapore.
Raffles Place - in the heart of Singapore's financial district - was the venue of the election's first lunchtime rally.
Lunchtime rallies, which were absent in the last General Election, have made a comeback this year.
The target is to reach out to the professionals, managers, executives and businessmen.
Nine PAP candidates took to the stage to explain the importance of maintaining good policies and programmes for Singapore, and why the PAP is the right party to deliver the right essentials.
Mr Lee says: "Deep capabilities in our population, in our government, in our leadership and deep values in our people to understand, to support, to work together, to make it work. Our system is different, it's good, it's good for Singapore and it works."
He says some Singaporeans want a more open, multi-party system.
Mr Lee says the opposition parties are capitalising on this by asking for their votes, not because of their abilities or policies, but because then, the opposition would exist.
But he questioned if this would make things better for Singapore.
Mr Lee says: "What is the opposition's job? It's not to help the PAP do a better job ... because if they help the PAP do a better job, you're going to vote for me again and they're going to be out of a job for a long time. So their job is to make life miserable for me.
"Right now we have Low Thia Khiang, Chiam See Tong, Steve Chia. We can deal with them. Suppose you had 10, 15, 20 opposition members in Parliament. Instead of spending my time thinking what is the right policy for Singapore, I'm going to spend all my time thinking what's the right way to fix them, to buy my supporters votes, how can I solve this week's problem and forget about next year's challenges?"
Mr Lee says while any Singaporean can enter politics, the quality needed to get elected must be very high.
He says this is why the PAP has assembled a strong, national team with a long term view - one that would work together and fight to realise its vision for Singapore.
At the rally, Mr Lee also named four potential office bearers, whom he will appoint after the elections.
They are Grace Fu, Lee Yi Shyan, Masagos Zulkifli and Lui Tuck Yew.
Mr Lee says if they are elected, they will be appointed parliamentary secretaries and ministers of state, adding that some of them have potential to go higher.
He described them as "big people with broad shoulders" who could deal with big issues and would serve the people well.
As to whether there would be more office-holders, Mr Lee says only time will tell as he learns more about the new candidates and their abilities.
Earlier, Mr Lee says he is especially proud of the bicultural candidates - those who are equally comfortable speaking Chinese and English, like former IE Singapore CEO Lee Yi Shyan. - CNA/de
http://www.channelnewsasia.com/stories/singaporelocalnews/view/206313/1/.html
What makes these two tick?
KBW stressed, looses his Karma powers... His wavering in the means testing issue is showing... Will he resign soon?
But who wouldn't with an unsolved $2.03B p.a. 'economic albatross' around the govt's neck; LHL's parliament's moral weaknesses, Ng EH's policy of weak subsidising the strong, the continually increasing rich poor divide, the pressure of such prejudices will surely make any dignified Health Minister jump to his grave!
May his Karma be strong.
- "In Mr Khaw's case, his spirituality is often cited as a key to his success."
- "last November, Mr Khaw dropped hints of retiring as he recalled how entering politics was never his wish. He had said this might be his last term in the Health Ministry, a "very meaningful portfolio" from which he would like to retire from politics. ..."
What makes these two tick?
Weekend • October 20, 2007
Christie Lohchristie@mediacorp.com.sg
EVEN in a centralised, collegiate and behind-the-scenes style of leadership like Singapore's, a few individuals do stand out.
They may not be seen as possessing the giant stature of past ministers such as Dr Goh Keng Swee and Mr S Rajaratnam — yet. But the qualities of an agent of change, helping to shape a nation's future, are already surfacing in a couple of today's ministers.
One does it with his Zen-like nature; the other, with his business-like mien.
Beyond these qualities, what is it that makes ministers Khaw Boon Wan and Tharman Shanmugaratnam tick?
The two career civil servants were among the so-called "Super Seven" to have risen rapidly within the ranks — joining the Cabinet in August 2003, just two years after making their political debut in the 2001 general elections.
Since then, the two names have become synonymous with the national agendas for health and education.
Mr Khaw, 54, is a man fighting to keep medical costs low. Hence the online posting of charges by private and public hospitals to make it easier for patients to compare prices and choose the kind of treatment that best suits their pockets.
Then, there's the ongoing reform of the 3Ms (Medisave, MediShield, Medifund) — aimed at ensuring that Singaporeans will have sufficient enforced savings for medical contingencies — an issue which Prime Minister Lee Hsien Loong once said Mr Khaw "lives and sleeps with every day".
In education, Mr Shanmugaratnam, 49, has tackled areas that have long troubled parents and their children. Among the lauded efforts to make education less rote and less based on academic results are the scrapping of the 29-year-old system of primary school streaming and the introduction of more fun ways to learn the Chinese language.
In short, what the two men set in motion concerns everyone from the cradle to the grave.
"It is the importance of the ministry that defines the importance of the man," said political scientist Ho Khai Leong from the Nanyang Technological University (NTU).
While health and education are big issues in any country, they have become major preoccupations in Singapore, where concerns over affordable health care for the elderly have grown in tandem with the ever-growing number of senior citizens; and where education is seen as the key to keeping Singapore a step ahead of competitors who are catching up faster than ever.
But while the portfolios in themselves are high profile, the leaders put in charge have also certainly excelled in their jobs, observers said.
"They answered the call," Assoc Prof Ho said of Mr Khaw and Mr Shanmugaratnam, who became Senior Ministers of State immediately after the 2001 elections. "They are meticulous, knowing the details of the issues."
Such understanding is seen as closely linked to two things: The individual's mental agility and his pre-politics experience in policy-making.
During Mr Khaw's 23 years as a civil servant, he spent 14 years in the Ministry of Health (MOH). There, he had conceived the idea of Medisave in 1983 when he was an administrative service officer working for then-Health Minister Goh Chok Tong, said a former colleague.
After that, the high-flier went on from 1985 to 1992 to head three hospitals: National University Hospital, Kandang Kerbau Hospital (now known as KK Women's and Children's Hospital) and Singapore General Hospital.
While the engineer-trained Colombo Plan scholar had never expected such a healthcare-centred career, the experience has certainly revealed his flexibility and given him the "intimate knowledge" necessary for him to "make things happen" as Health Minister, said an industry insider.
The experience probably also played a big part in imparting the necessary confidence to act firmly as minister.
Looking at his track record in MOH, it wouldn't be too much of an exaggeration to say that Mr Khaw had impressed Mr Goh enough to be invited to join the 2001 campaigning team of Singapore's second Prime Minister.
For Mr Shanmugaratnam, his career at the Monetary Authority of Singapore (MAS) provided him with a similar opportunity to prove his mettle to another future Prime Minister, Mr Lee Hsien Loong.
The MAS was where Mr Shanmugaratnam, a London School of Economics graduate, spent nearly his entire professional life, working as an economist. It was only from 1995 to 1997 that he hopped over to the Education Ministry as its Deputy Secretary (Policy).
So, although he had not spent much time in education circles, Mr Shanmugaratnam was, like Mr Khaw, an old hand at crafting big plans for the nation.
The chance to shine before one of the country's top men came in 1997 when Mr Shanmugaratnam returned to MAS at a higher position than before: Deputy managing director. It was from then that he had ample opportunities to work with and impress Mr Lee, who was Deputy Prime Minister at the time and concurrently appointed head of MAS in 1998.
Mr Shanmugaratnam was later promoted to managing director and then invited to join the People's Action Party.
Prof Ho believes Mr Shanmugaratnam's "professorial" quality is one reason why he has been an effective Education Minister — he is able to break down complex issues and policies such that the public understands him. It is a trait that Mr Khaw shares, Prof Ho said.
Another of Mr Shanmugaratnam's strong points is the "ability to empathise with the anxieties, concerns and aspirations of the people", noted Mr Viswa Sadasivan, chief executive of public relations firm Strategic Moves.
Such empathy may have something to do with the fact that this is one minister who knows what it is like to be on the wrong side of the law.
In 1992, Mr Shanmugaratnam, an MAS economist at the time, came under intense public scrutiny when he was charged for breaching the Official Secrets Act. Because he had brought a confidential report — containing an advance estimate of Singapore's quarterly economic growth — into a meeting with journalists who went on to publish the figure ahead of its official release, the courts fined him $1,500 in 1994.
"All these experiences have made him a well-rounded person," said Mr Viswa.
In Mr Khaw's case, his spirituality is often cited as a key to his success.
Several commentators have said before that the Buddhist never appears ruffled. He is always calm and, like Senior Minister Goh, is able to connect with people on a grassroots level.
Mr Viswa puts it down to the Zen belief that people on the ground should be treated with fairness and dignity, thus lending Mr Khaw a certain "moral courage" to act.
Perhaps, Mr Khaw's readiness to act — in terms of pushing for far-reaching changes in Singapore's health landscape — may also be related to his desire to retire from politics sooner, rather than later.
In a Today interview last November, Mr Khaw dropped hints of retiring as he recalled how entering politics was never his wish.
He had said this might be his last term in the Health Ministry, a "very meaningful portfolio" from which he would like to retire from politics.
And for a minister, what can be more meaningful than to put in place reforms that would benefit the whole nation long after he is gone?
No matter when he makes his exit, there is little doubt that Mr Khaw has left his mark in the ministry. Ditto for Mr Shanmugaratnam.
But for all their outstanding performances, one thing should not be forgotten: That no minister, or his ministry, is an island.
As Prime Minister Lee once said, his Cabinet is "a collegiate team", where ministers jointly work on issues, such as dengue or labour, which touch their portfolios.
At the same time, those who oversee ministries that deal with more sensitive information, such as Home Affairs and Defence, may be less in the public eye, but they too are making big contributions behind the scenes, said political commentator Zulkifli Baharudin.
The businessman and former Nominated Member of Parliament added : "The Singapore system emphasises less on personality."
Except that of the Prime Minister.
Said Assoc Prof Ho: "PM is the first among equals. He's the one making policy and the rest are overshadowed by his presence." Copyright MediaCorp Press Ltd. All rights reserved http://www.todayonline.com/articles/217671.asp
No need to raise GST if land sales seen as revenue
STI Home > ST Forum > Story > Print
Feb 3, 2007
No need to raise GST if land sales seen as revenue
THERE has been much debate in the media about the proposed Goods and Services Tax (GST) hike.
The crux of the official argument is that the hike is needed to fund Workfare, and a cut in corporate-tax rates for Singapore to remain attractive to investors.
I am all in favour of a balanced Budget but we have unfortunately adopted a super- conservative approach in budgeting that fails to present a fair view of the true economics of the numbers. Government land 'sales', which contribute a huge chunk of revenue, have been ignored.
I am convinced that the Budget can be balanced without a GST hike if land 'sales', which are a true cash inflow, are included in Budget calculations.
The Government does not actually sell land; it sells leases, most of which are 99 years or less. In due course, the land reverts to the state or the leases are topped up, for example, the Marina Bay integrated resort has delivered $1 billion to the Treasury on a 30-year lease.
Hence, the cash inflow is similar to rental income and thus recurring in nature. Indeed, not including government land sales in Budget calculations as part of operating revenue is an economic distortion.
The impending two-point hike in GST will raise an additional $1.5 billion in revenue but data from the Ministry of Finance website shows that proceeds from land sales are in excess of this amount. At $4 billion per annum, revenue from land sales is about 2 per cent of GDP or about 14 per cent of government expenditure.
Ignoring the value of land sales is like a household with an income of $100,000 per annum refusing to bank $14,000 cheques.
The GST hike is also expected to further stunt the domestic economy which, despite its small size relative to GDP, employs the majority of the workforce. We need a vibrant domestic economy for local entrepreneurship to flourish. Also, virtually all the MNCs that we court today and local big boys were once small companies selling to the domestic community.
Joseph Chong Thiam Fook
--------------------------------------------------------------------------------
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
http://www.straitstimes.com/portal/site/STI/menuitem.c2aef3d65baca16abb31f610a06310a0/?vgnextoid=7532758920e39010VgnVCM1000000a35010aRCRD&vgnextfmt=vgnartid:d212076185380110VgnVCM100000430a0a0aRCRD:vgnpdate:1170539940000
Feb 3, 2007
No need to raise GST if land sales seen as revenue
THERE has been much debate in the media about the proposed Goods and Services Tax (GST) hike.
The crux of the official argument is that the hike is needed to fund Workfare, and a cut in corporate-tax rates for Singapore to remain attractive to investors.
I am all in favour of a balanced Budget but we have unfortunately adopted a super- conservative approach in budgeting that fails to present a fair view of the true economics of the numbers. Government land 'sales', which contribute a huge chunk of revenue, have been ignored.
I am convinced that the Budget can be balanced without a GST hike if land 'sales', which are a true cash inflow, are included in Budget calculations.
The Government does not actually sell land; it sells leases, most of which are 99 years or less. In due course, the land reverts to the state or the leases are topped up, for example, the Marina Bay integrated resort has delivered $1 billion to the Treasury on a 30-year lease.
Hence, the cash inflow is similar to rental income and thus recurring in nature. Indeed, not including government land sales in Budget calculations as part of operating revenue is an economic distortion.
The impending two-point hike in GST will raise an additional $1.5 billion in revenue but data from the Ministry of Finance website shows that proceeds from land sales are in excess of this amount. At $4 billion per annum, revenue from land sales is about 2 per cent of GDP or about 14 per cent of government expenditure.
Ignoring the value of land sales is like a household with an income of $100,000 per annum refusing to bank $14,000 cheques.
The GST hike is also expected to further stunt the domestic economy which, despite its small size relative to GDP, employs the majority of the workforce. We need a vibrant domestic economy for local entrepreneurship to flourish. Also, virtually all the MNCs that we court today and local big boys were once small companies selling to the domestic community.
Joseph Chong Thiam Fook
--------------------------------------------------------------------------------
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
http://www.straitstimes.com/portal/site/STI/menuitem.c2aef3d65baca16abb31f610a06310a0/?vgnextoid=7532758920e39010VgnVCM1000000a35010aRCRD&vgnextfmt=vgnartid:d212076185380110VgnVCM100000430a0a0aRCRD:vgnpdate:1170539940000
Singapore's Rich-Poor Divide
HOW COME THE RICH-POOR DIVIDE DOES NOT CLOSE DESPITE BEING THERE BEFORE AND CORRECTING THE PROBLEM? WHAT ARE WE MISSING?
Singapore Swing
The island's economy is booming. So why are so many citizens worse off than they were 10 years ago?
- Singapore's Rich-Poor Divide
By Sonia Kolesnikov-Jessop (Newsweek International)
Jan. 29, 2007 issue - Tiny Singapore, with its population of 4.3 million, is often lauded for the way it has embraced globalization to maximum advantage. In the last decade, the city-state has opened its doors wide to foreign investment and talent, slashed corporate taxes, offered incentives to nurture strategic industries (such as biotech, pharmaceuticals and financial services) and cut free-trade deals with a host of other countries. The payoff has seemed clear: over the past three years, Singapore's economy has averaged 7.6 percent growth—a staggering pace for an industrialized state—and created new jobs at a rate any European government would envy.
There's only one problem: average citizens have yet to reap the benefits. New statistics reveal that middle-class households have tasted none of Singapore's spectacular growth, and that the island's poorest 30 percent are worse off than they were five years ago. "Although we have seen very strong growth, we're experiencing this new phenomenon of median real-wage stagnation and low-income decline," says Yeoh Lam Keong, vice president of the Economic Society of Singapore. This predicament is hardly unique. Wages and salaries are stagnating across the industrial world. What's surprising is that even a country famous for its smart and transparent leadership has been unable to prevent the gains of globalization from flowing mostly to rich individuals and multinational corporations. In its bid to adapt Singapore's economy to international competition, the government has tried hard to reduce business costs. This has meant slashing labor prices, which has helped push wages down. According to official figures, over the past five years Singapore's wealthiest 10 percent have seen their income rise by 2.3 percent annually (and that doesn't include nonwage earnings such as capital gains or dividends). At the same time, the poorest 10 percent have suffered a staggering 4.3 percent drop in their salaries each year. The government has also allowed employers to cut their contributions to Singapore's Central Provident Fund, which pays for pensions, public housing, medical expenses and educatn on.
Together, these factors have led to lower-than-expected private consumption, which has risen by just 3 percent in the past two years. "Private consumer spending has been the weak link in this current expansion," says Chua Hak Bin, an economist at Citigroup Global Markets in Singapore. This has, in turn, stung Singapore's large retail sector. "It is evident that [they] are not the big winners from high growth," says Manu Bhaskaran, a director of the U.S.-based Centennial Group.
Foreign competition is also hurting. Contractor Tan Boon Soo is one of many Singaporeans feeling the pinch. He installs windows for a living but laments "cutthroat competition" from contract laborers, who have flooded the island from places such as Indonesia and Bangladesh. Unskilled workers like street sweepers and security guards are also finding themselves undercut by immigrants willing to work for less. This is forcing native Singaporeans to change occupations or work harder for less money. "They talk about growth, but I don't see it," says Tan. "Maybe the bankers are doing well, but construction has not been. I'm worse off now than I was in 1997."
All this could spell big trouble. "If these trends continue unchecked," warns Yeoh, "we could begin to get the formation of an underclass [and] the makings of social instability." Such an underclass was never part of Singapore's grand plan. Now its leaders must figure out how to prevent one from emerging without relying on the kind of welfare programs they often deride. Last year the government launched an experimental workfare program that gave low-wage earners bonus pay of up to $780. Now Prime Minister Lee Hsien Loong's government is con- sidering making the program permanent in an effort to thin the ranks of the working poor.
"We will try out different forms, but the principle will be the same—help yourself [and] we will help you," the prime minister told lawmakers last November. "It's essential for us to tilt the balance in favor of lower-income Singaporeans because globalization is going to strain our social compact."
Lee has already announced that he'll make Singapore's rich-poor divide a major focus of his annual budget speech next month.
If knowing is half the battle, it could be an important first step.
© 2007 Newsweek, Inc.
http://www.lopn.net/ST_Casestudy22_Richpoor.html
Singapore Swing
The island's economy is booming. So why are so many citizens worse off than they were 10 years ago?
- Singapore's Rich-Poor Divide
By Sonia Kolesnikov-Jessop (Newsweek International)
Jan. 29, 2007 issue - Tiny Singapore, with its population of 4.3 million, is often lauded for the way it has embraced globalization to maximum advantage. In the last decade, the city-state has opened its doors wide to foreign investment and talent, slashed corporate taxes, offered incentives to nurture strategic industries (such as biotech, pharmaceuticals and financial services) and cut free-trade deals with a host of other countries. The payoff has seemed clear: over the past three years, Singapore's economy has averaged 7.6 percent growth—a staggering pace for an industrialized state—and created new jobs at a rate any European government would envy.
There's only one problem: average citizens have yet to reap the benefits. New statistics reveal that middle-class households have tasted none of Singapore's spectacular growth, and that the island's poorest 30 percent are worse off than they were five years ago. "Although we have seen very strong growth, we're experiencing this new phenomenon of median real-wage stagnation and low-income decline," says Yeoh Lam Keong, vice president of the Economic Society of Singapore. This predicament is hardly unique. Wages and salaries are stagnating across the industrial world. What's surprising is that even a country famous for its smart and transparent leadership has been unable to prevent the gains of globalization from flowing mostly to rich individuals and multinational corporations. In its bid to adapt Singapore's economy to international competition, the government has tried hard to reduce business costs. This has meant slashing labor prices, which has helped push wages down. According to official figures, over the past five years Singapore's wealthiest 10 percent have seen their income rise by 2.3 percent annually (and that doesn't include nonwage earnings such as capital gains or dividends). At the same time, the poorest 10 percent have suffered a staggering 4.3 percent drop in their salaries each year. The government has also allowed employers to cut their contributions to Singapore's Central Provident Fund, which pays for pensions, public housing, medical expenses and educatn on.
Together, these factors have led to lower-than-expected private consumption, which has risen by just 3 percent in the past two years. "Private consumer spending has been the weak link in this current expansion," says Chua Hak Bin, an economist at Citigroup Global Markets in Singapore. This has, in turn, stung Singapore's large retail sector. "It is evident that [they] are not the big winners from high growth," says Manu Bhaskaran, a director of the U.S.-based Centennial Group.
Foreign competition is also hurting. Contractor Tan Boon Soo is one of many Singaporeans feeling the pinch. He installs windows for a living but laments "cutthroat competition" from contract laborers, who have flooded the island from places such as Indonesia and Bangladesh. Unskilled workers like street sweepers and security guards are also finding themselves undercut by immigrants willing to work for less. This is forcing native Singaporeans to change occupations or work harder for less money. "They talk about growth, but I don't see it," says Tan. "Maybe the bankers are doing well, but construction has not been. I'm worse off now than I was in 1997."
All this could spell big trouble. "If these trends continue unchecked," warns Yeoh, "we could begin to get the formation of an underclass [and] the makings of social instability." Such an underclass was never part of Singapore's grand plan. Now its leaders must figure out how to prevent one from emerging without relying on the kind of welfare programs they often deride. Last year the government launched an experimental workfare program that gave low-wage earners bonus pay of up to $780. Now Prime Minister Lee Hsien Loong's government is con- sidering making the program permanent in an effort to thin the ranks of the working poor.
"We will try out different forms, but the principle will be the same—help yourself [and] we will help you," the prime minister told lawmakers last November. "It's essential for us to tilt the balance in favor of lower-income Singaporeans because globalization is going to strain our social compact."
Lee has already announced that he'll make Singapore's rich-poor divide a major focus of his annual budget speech next month.
If knowing is half the battle, it could be an important first step.
© 2007 Newsweek, Inc.
http://www.lopn.net/ST_Casestudy22_Richpoor.html
Saturday, October 20, 2007
Means testing put on hold
- 2May06: "Means testing itself is not wrong, but how to do it properly is tricky and needs time. Originally, I was more ambitious when I returned to (the Health Ministry) three years ago. I thought we could do means testing."
- Nov2006: "Mr Khaw dropped hints of retiring as he recalled how entering politics was never his wish"
- 7April07: Means testing may kick in within next 12 months
Oh... KBW has become ambitious again? Why the flip flop? ... oh, right, Kharma comes in waves...
Means testing put on hold
By : Tor Ching Li, TODAY
Date : 02 May 2006 0657 hrs (SST)
URL : http://www.channelnewsasia.com/stories/singaporelocalnews/view/206005/1/.html
SINGAPORE: Means testing - which would see public healthcare patients being charged according to what they can afford - will not be implemented within the next two years as originally planned, said Health Minister Khaw Boon Wan on Monday morning.
"Means testing itself is not wrong, but how to do it properly is tricky and needs time. Originally, I was more ambitious when I returned to (the Health Ministry) three years ago. I thought we could do means testing.
"But after discussion with people, I think let us do other proposals first," Mr Khaw told reporters during a Sembawang walkabout.
Instead, Mr Khaw said he would focus on revamping the MediShield national health insurance system and on improving healthcare for the chronically-ill.
He was responding to Workers' Party (WP) chairman Sylvia Lim's questions on how means testing for healthcare would be carried out.
She had raised the issue during a WP rally at Hougang on Sunday night, stating that present indicators such as house size and household income may not be accurate or appropriate benchmarks for how much a person could afford to pay.
"If we make the same amount of money, it does not mean we have the same amount of money to spend," said Ms Lim.
Mr Khaw stressed that nobody can fault the principle of means testing. This included WP chief Low Thia Khiang who, according to Mr Khaw, had raised in Parliament the idea of means testing for Government polyclinic patients because Mr Low felt that rich patients were "overcrowding" the heavily-subsidised polyclinics.
However, whether means testing will eventually be carried out will depend on whether it is practical to do so.
Said Mr Khaw: "I will do it only if it is practical, because the theory may be sound but if the implementation is more costly ... then it's not worth the effort.
"So whether to do it or not, I don't know. It depends on whether we can come up with practical ideas."
As for how long it would take to work this out, Mr Khaw replied: "I don't know. You know my attitude to work, I am single-minded about things and I focus my energy on a particular issue. Right now, my big issue - besides Sembawang - is the chronically-sick. I think they can get better healthcare than they are receiving now."
When asked for his response to WP candidate Perry Tong's proposal for the Government to scrap the Goods and Services Tax (GST) on drugs - as well as to charge at cost medication for chronic illnesses such as high blood pressure and diabetes - Mr Khaw said the answer to rising healthcare costs was not so simple.
"If it was so simple that just one or two simple ideas from Perry Tong and the whole healthcare issue disappears, we would not have healthcare problems around the world being such a major political issue, not just here," said Mr Khaw.
He accused the WP of trying to score political points by proposing populist healthcare solutions that have proved disastrous in Britain, Europe and elsewhere. In Britain, he said, patients wait for months for even simple procedures.
And ideas such as reducing GST for medical bills, which is already being done for subsidised patients, would benefit the rich more than the poor. Private hospital bills are many times the size of Class C hospital bills.
"Instead, our solution is to provide Class C with the greatest subsidy (at 80 per cent of cost)," he said. - TODAY /dt
Copyright © 2006 MCN International Pte Ltd
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