Saturday, May 18, 2019

Wisdom of the crowd

Vote on these issues and win a prize.
https://wisdomofthecrowd.sg/active_issue.aspx


WOTC - Tariffs on China

I asked this question in the Wisdom of the Crowd:

Should America impose tariffs on China alone?

Here are the responses: (38 Votes)
37 % - The manufacturers will shift production to other countries and it will not help the American economy.
32 % - Tariffs are bad as it will prices for American consumers.
18 % - America should impose tariffs on all imports to bring revenue to the govt and bring jobs back to the country. 
13 % - China is the biggest culprit in unfair trade practices and should be required to pay the tariffs.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1333

WOTC - Reservist duty

I asked this question in the Wisdom of the Crowd:

Should reservist duty be reduced from 10 years to 5 years?

Here are the responses: (49 Votes)
43 % - We should reduce it to 5 years to reduce the disruption to the career and exposure to dangerous training. 
37 % - We should reduce reservist training to 3 years. 
10 % - We need to keep it at 10 year to maintain a credible defense force.
10 % - We can keep the current training regime but compensate $500,000 to the family on the death of a NS man or reservist while on duty.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1330

How can POFMA be improved?

I wish to suggest what is wrong with the fake news law or POFMA and what can be done to improve it.

Friday, May 17, 2019

Let the court decide on what is fake news

Under the POFMA or fake news law, any of the 20 ministers can make a determination that a news is false and require the news item to be corrected or taken down.
I suggest that this determinaition should be made by the court, rather than a minister. This will ensure that there is consistency in making the determination.
If I am not mistaken, the minister for law has said that this approach would be time consuming.

Wisdom of the crowd

WOTC - Focus on jobs

I asked this question in the Wisdom of the Crowd:

Heng SK gives a top focus for jobs for Singaporeans.

Here are the responses: (46 Votes)
46 % - He was a key person who negotiated the CECA agreement that caused jobs to be lost for our locals.
41 % - I am doubtful that he really intends to work on a solution.
7 % - I agree with this goal and will support him to achieve it.
7 % - I am hopeful that he will be able to achieve this goal.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1326

WOTC - Death of Aloysius Pang

I asked this question in the Wisdom of the Crowd:

Should the minister of defense take responsibility for the death of Aloysius Pang?

Here are the responses: (37 Votes)
38 % - He should resign.
30 % - He should apologise personally to the family and to the nation.
19 % - He should reduce the reservist duty from 10 years to 5 years to reduce this kind of dangerous exposure.
14 % - He should punish the commanders responsible for this training death.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1329

Thursday, May 16, 2019

A crazy decision

I find it rather strange that the Singapore Medical Council, which is appointed by the Ministry of Health, formed a disciplinary committee which imposes an excessive penalty on a doctor. And the SMC now has to appeal to the court to reduce the penalty.

What is happening in Singapore? We seem to be doing crazy things. Where is our common sense, sense of right and wrong, and sense of proportion?

I am afraid that this is the outcome of "following standard operating procedure". It can cause bad decisions.

See this feedback from a doctor:
https://tklcloud.com/Feedback/feedback2.aspx?id=1486

Simplify Medisave and make it voluntary

I saw a 10 page booklet explaining about Medisave. It tells what Medisave can be used for and the limits that apply.

As the booklet is in 4 languages, it covers 40 pages.

As there are limits, it means that for each treatment, the patient can use Medisave to pay for some of the cost and has to pay for the other cost in cash.

It is certainly quite troublesome, complicated and costly to administer.

Is there a better way?

Here are my suggestions:

a) Make Medisave voluntary. Allow the member to contribute to the Medisave account to earn an attractive interest rate of 4% per annum.

b) Allow Medisave to be used in full for any kind of approved medical treatment. The cost of the approved treatment can be capped by the Ministry of Health. The doctor or clinic cannot ask the patient to make a "balance payment".

Vote here.
https://tklcloud.com/Feedback/feedback2.aspx?id=1489

Jobs for locals

The govt faces a conflict of interest when they want to help locals gets jobs. They may end up helping foreign workers get employed.

Do you agree? Vote on this topic.
https://tklcloud.com/Feedback/feedback2.aspx?id=1488

Distortion in residential property market

The govt offers a grant for a citizen to buy a new or resale HDB flat. This grant is very attractive, as the buyer can realize it when he sells the flat after 5 years.

There is no such subsidy when the family rents a flat.

Furthermore, the high contribution rate forces citizens to buy a HDB flat, because they cannot use the contribution to pay the rental.

This distorts the market. It forces people to buy a HDB flat or property when it is more sensible for them to rent a flat. It is a reason for the price of property to go up so high. It distorts the market.

High property prices is bad for the long term health of the economy or the living standard of the people.

This policy has to be changed. Vote here 

Unwise to buy rider to cover the deductible under an integrated plan

For a long time, I have been advising consumers not to buy the rider to cover the deductible under the integrated plan.

Here are my reasons:

a) Assume that the chance of a claim is 1 in 10 years and the deductible is $3,000, the true cost of the rider is $300. But the insurance company has to load by at least 50% to cover the marketing and administration cost. So, the customer has to pay $450.

b) To make matters worse, some of the policyholders will be making excessive claims, as it is being covered. So, the actual cost will be higher than $450 to cover the inflated claims.

When I was running an insurance company, I had advised the policyholders not to buy the rider. I told them to self insure this risk.

Guess what? Most policyholders disagree with me. They do not feel comfortable about taking this risk, even though it is small. They insist on buying all the insurance that is available.

If I do not offer the rider to cover the deductible, they will probably go to another insurer. So, I have to offer this rider to meet the market demand, even though I advised against it.

Even well educated people cannot see the logic of my advice. They insist on getting full cover.

Over the past years, the cost of the integrated plan, including the rider, has gone up by a lot. Some people complained that the premium increased by more than 10% a year for many years.

Well, I did warn them. But they do not want to listen to my warning. So, they are now in a dilemma.







Tan Kin Lian

Wisdom of the crowd

Here are the issues for you to vote and win a prize.
https://wisdomofthecrowd.sg/active_issue.aspx

WOTC - A corrupt govt

I asked this question in the Wisdom of the Crowd:

Is it acceptable to describe the LHL govt as a corrupt one?

Here are the responses: (42 Votes)
81 % - It is acceptable, provided that the supporting reasons are given.
12 % - It is unacceptable and should be avoided.
5 % - It should be removed as "fake news".
2 % - The person who make this statement should be charged for sedition.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1328

WOTC - Health of Heng SK

I asked this question in the Wisdom of the Crowd:

Is Heng SK physically fit to take the strain of leadership?

Here are the responses: (41 Votes)
39 % - The challenges require his personal attention and will be harmful for his health.
34 % - His health condition will return and cause uncertainty
20 % - He will be able to manage the stress by delegating the responsibility to his team.
7 % - He has fully recovered.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1327

Claim settlement policy of insurance company

Some people wondered why I advised against taking travel insurance, when I had promoted the sale of travel insurance in the past.

The key point to note is - what is the claim settlement policy of the insurance company.

When I run an insurance company, the policy was "prompt and fair settlement of claims".

If you can find an insurance company that practice this policy, you can buy insurance from that company.

However, if the insurance company's policy is to make the most profits from the business, you should avoid that company. They will find reasons to reject claims, even if the reasons are not fair and not reasonable.

I have seen many examples of unfair rejection of claims. So, I advise people to avoid buying insurance for small losses. It is better to self insure the loss and take the risk when it occurs.

We all lose things now and then. Sometimes, we lose a mobile phone. We bear the loss and buy a new one. We do not need to buy insurance for this kind of common losses.

The same approach applies to travel insurance.

If you are worried about accidents, buy a personal accident policy for a large sum.

Some of them might cover evacuation for an accident that occurs overseas

If this is not covered, do not worry too much about it. This event is quite rare. I think that many more people die from an accident that have to be evacuated.

Rejected travel claims

Do not buy insurance to cover small losses, such as loss of belongings or flight delay. Sometimes, it takes a lot of trouble to make a claim.

Just cover for the big losses, such as loss of life or serious injury due to accidents.

I share some examples of rejected or troublesome claims that people seek help from me.

a) The policyholder was pickpocketed in Russia. He lodged a police report (which was recorded in Russian). He submitted a claim under travel insurance. The claim officer insisted that he get the police report translated into English from a certified translator. He does not know where to find one, and how much does it cost.

b) The policyholder contracted a disease while on travel. The symptom was discovered on his return to Singapore. The claim was rejected, as he could not prove where it had occurred.

c) The policyholder suffered a long flight delay. He submitted a claim under travel insurance. The insurance company sent a letter to the airline to confirm that there was a delay. The airline did not reply. The claim was not paid for a few months.

All of these claims are for small amounts. It does take a lot of trouble to get the claim paid.

There are other cases where the claims are paid without much hassle. Perhaps, the rejected claims come from inexperienced officers, or from insurers that set a KPI to their claim officers to keep below a certain quote of claims.

Wednesday, May 15, 2019

Making a claim on travel insurance

Most people insist on buying travel insurance to cover the the risk that something may go wrong. They pay a premium of $50 to $100 for each travel. The chance of a claim occurring is quite small. So, they pay the premium and are happy that all went well.

When they fall ill and have to miss a flight, or suffered a long flight delay, they make a claim. Sometimes the claim is paid. Sometimes it is rejected due to some exclusions or conditions that were not fulfilled.

Some of these claimants approach me for help. I ask them to accept the decision of the insurance company in the rejection of the claim.

If they are still unhappy about the rejection, they should see a lawyer.

They said that a lawyer is expensive. Of course! The lawyer has to make a living. The legal fees may be more than the amount of claim.

These claimants probably expect me to deal with the claim for free. I cannot afford to spend the time, as it can be quite protracted. I can only give some general advice.

I do not buy travel insurance. If anything happens, I bear the loss - e.g. medical expenses or lost items. It is too troublesome to make a claim. It is more troublesome to argue with the insurance officer who finds a reason to reject the claim.

I do have a personal accident insurance for $1 million that covers me against death or serious injury in Singapore and around the world. Do not think that accidents only happen when you travel. It can happen in Singapore as well.

For people who likes to buy travel insurance, just treat it as paying a tax. And if you are able to make a claim, treat it as striking lottery.

Wisdom of the crowd

Here are additional issues for you to vote
https://wisdomofthecrowd.sg/active_issue.aspx


WOTC - Leaks at Jewel at Changi

I asked this question in the Wisdom of the Crowd:

What are your views about the leaks in the Jewel at Changi.

Here are the responses: (43 Votes)
47 % - The quality of construction and worksite supervision has dropped to an unacceptable level.
23 % - The problems should have been fixed before the official opening.
21 % - It is just teething problem that can be expected from a new project.
9 % - Apart from this small glitch, the rest of the project came out well.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1325

WOTC - Fake news law

I asked this question in the Wisdom of the Crowd:

Is it necessary for the govt to pass a law to control fake news?

Here are the responses: (49 Votes)
51 % - The real intent of the new law is to suppress criticism of the failing of the govt.
35 % - There is no need to pass a new law as the existing laws can deal with the situation.
10 % - It is necessary to deal with a problem that will become bigger as time passes.
4 % - A new law is needed by it is better to follow the practice of other democratic countries.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1324

Tuesday, May 14, 2019

Affordable housing

The prices of new HDB flats are too high. Even after a large government grant, the net cost to the buyer will take away a large part of the CPF savings and disposable income. One factor is the need to pay for 99 years of the lease of the flat.

The government can make housing affordable by adopting this approach:
https://tklcloud.com/Feedback/feedback2.aspx?id=1478

Wisdom of the crowd

WOTC - Govt response to feedback on fake news law

I asked this question in the Wisdom of the Crowd:

Govt's response to the negative feedback on the fake news law

Here are the responses: (37 Votes)
46 % - The govt is applying a draconian solution to an imaginary problem.
27 % - The feedback from the public and international sources show the weakness of the govt's approach.
24 % - The response from the govt is still unsatisfactory.
3 % - The govt is listening to the feedback and making the appropriate changes.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1323

WOTC - Extremist view posted online

I asked this question in the Wisdom of the Crowd:

Young people are more open to extremist views posted online.

Here are the responses: (42 Votes)
55 % - Young people are better educated, compared to the previous generation.
29 % - They are not aware of the risk of extreme views.
10 % - They are able to make the correct judgment on these views.
7 % - They are likely to be misled.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1322

Monday, May 13, 2019

Allow Hyflux to fall into foreign control?

Two white knights have expressed interest to buy Hyflux. They are a utilities company in the UAE and a global investment fund.

Presumably, these potential investors see some value in investing in Hyflux.

What about the funds that are based in Singapore, including our govt agencies? Do they not see any value in preserving a home grown unicorn?

Are we prepared to have Hyflux fall under foreign control?
https://tklcloud.com/Feedback/feedback2.aspx?id=1474

US consumers paid for the tariffs

There is a study in America that after Trump imposed the tariffs on China imports, the prices charges by the exporters remain unchanged, so the US consumers have to pay the higher prices, i.e. due to the tariffs.

The US manufacturers raised their prices to match the higher prices from the imports (which include the tariffs).

The study concluded that he US consumers paid for the tariffs.

Read more about the impact here:
https://tklcloud.com/Feedback/feedback2.aspx?id=1473

Wisdom of the crowd

WOTC - Bad business practices

I asked this question in the Wisdom of the Crowd:

Should the govt protect consumers from bad business practices?

Here are the responses: (35 Votes)
91 % - The regulator should ensure that business practices are fair and acceptable.
6 % - This should be left to the market.
3 % - The regulator should approve business contractual terms.
0 % - Consumers should pay attention to the contractual terms.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1321

WOTC - ILS at Seletar Airport

I asked this question in the Wisdom of the Crowd:

Does Malaysia have a legitimate concern over the ILS in Selectar?

Here are the responses: (35 Votes)
49 % - Both countries should work in closer cooperation and not create wasteful quarrels.
26 % - Malaysia has a legitimate worry over the impact on Pasir Gudang.
17 % - The worry over Pasir Gudang is just an excuse.
9 % - The instrument landing system is needed to guide aircrafts during bad weather.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1320

Sunday, May 12, 2019

Why CPF failed in its mission

Singaporeans save a large part of their earnings in the Central Provident Fund, including the contribution from their employer.

But they do not have adequate savings for their retirement needs.

What happened? What cause this leakage?
https://tklcloud.com/Feedback/feedback2.aspx?id=1472

SDP Health care plan - universal health care system

The health care plan proposed by SDP is a universal health insurance plan that provide comprehensive benefits with a modest co-payment and takes care of the full cost of treatment without any cap.

It was designed by several practicing doctors who really understand the problem and flaws in our health care system.

The plan was submitted 10 years ago and has been updated a few times.

Read the details here:
https://tklcloud.com/Feedback/feedback2.aspx?id=1471

SDP Health care plan

The health care plan proposed by SDP is a comprehensive insurance plan with a modest co-payment and takes care of the full cost of treatment without any cap.

It was designed by several practicing doctors who really understand the problem and flaws in our health care system.

The plan was submitted 10 years ago and has been updated a few times.

The SDP plan is a better plan than the messy medishield life, deductible, integrated plan, rider, exclusion that is under the current system.

Socialism and communism

Many people have a mistaken impression of socialism and communism. They are largely influenced by the western media and are not able to tell the difference between the different types of government.

I like to refer them to this explanation. It is worth reading and careful analysis.
https://tklcloud.com/Feedback/feedback2.aspx?id=1470

WOTC - Spending on infrastructure

I asked this question in the Wisdom of the Crowd:

Should the govt spend more on infrastructure and buildings?

Here are the responses: (39 Votes)
90 % - We should control spending on infrastructure and public buildings and reduce the tax burden on the people. 
5 % - We should display a more modest image internationally.
3 % - We need to have impressive infrastructure and public buildings.
3 % - The large spending will improve the international image of Singapore. 

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1319

WOTC - Slogan for non PAP coalition

I asked this question in the Wisdom of the Crowd:

Which slogan is better for non PAP coalition?

Here are the responses: (47 Votes)
62 % - Vote for transparency and accountability
30 % - Vote for a better future
9 % - Vote for change
0 % - Don't vote PAP

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=1318

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