The Minister for National Development is worried about investors rushing to buy "shoebox units". Link. The Monetary Authority of Singapore is worried that they are rushing to invest in perpetual bonds. Link.
I hope that our Government realize that the underlying problem is the extremely low interest rate in Singapore. Investors need to get a better return on their money. Retirees cannot afford to live on interest rate of 0.25% per year. If the retiree has $100,000, they only receive $250 A YEAR. Who can live on this type of income?
The low interest rate have forced investors to look at other types of investments, including paying high prices for "shoebox units" in the hope of getting a decent rental return. This high prices, which looked like a bubble, may not be sustainable.
If the Government is concerned about the financial future of the citizens, it is time for them to review their economic policy that caused interest rate to be so low. While low interest rate is a global phenomena in recent years, the low interest rate in Singapore has been around for a much longer period.
The Government should consider the issue of long term Government bonds that offer a yield to citizens that is higher than the rate of inflation. Some countries have issued bonds that give an interest rate that is higher than inflation. This option should be explored.
I hope that our Government realize that the underlying problem is the extremely low interest rate in Singapore. Investors need to get a better return on their money. Retirees cannot afford to live on interest rate of 0.25% per year. If the retiree has $100,000, they only receive $250 A YEAR. Who can live on this type of income?
The low interest rate have forced investors to look at other types of investments, including paying high prices for "shoebox units" in the hope of getting a decent rental return. This high prices, which looked like a bubble, may not be sustainable.
If the Government is concerned about the financial future of the citizens, it is time for them to review their economic policy that caused interest rate to be so low. While low interest rate is a global phenomena in recent years, the low interest rate in Singapore has been around for a much longer period.
The Government should consider the issue of long term Government bonds that offer a yield to citizens that is higher than the rate of inflation. Some countries have issued bonds that give an interest rate that is higher than inflation. This option should be explored.
The PAP government must first move back to fundamentals which is 'to govern' and NOT to get involved in all sorts of businesses through GLCs(Government Linked Companies). There is always the ethical problem - a conflict of interest confronting them. Any call for them to design a better policy which can eventually benefit a wider population often met with a sense of struggle on various levels of government.
ReplyDeleteTo conclude that our elected government is out of touch with the ground/reality is not unreasonable. Yesterday, the Minister of Trade and Industry, Mr. Lim Hng Kiang said in Parliament: "Food price increase 'not as bad as in 2008'."
Anyone can walk around the supermarket, e.g. Sheng Siong Supermarket at Commonwealth Drive; Tomato: S$1.40 per kg, Carrot: S$1.70 per kg and Broccoli: S$5.50 per kg, etc...
A few days ago, a senior citizen was frightened by a steep increase of about 23% in price within a week in Sheng Siong Supermarket. The item is a packet of 20's, Goldkili Kopi-O. She walked away in protest and suffered in silence. There are too many of these kind of instances(profiteering) happening in Today Singapore. It's time to wake up! Our arrogant rulers.
What we really need, if the government is serious about listening to the people, is a Free Press. The free press must NOT be a mouthpiece for the opposition. It should however tell things as they are, without the dubious statistics. e.g. Compare the size and price of a 4-room flat in the 80's with one now, not a comparison with one just 5 years ago. Similarly compare the amount of wage increase of the same period, to clearly show how runaway price of a flat is affecting the ordinary people.
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