CPF interest rate remain at 4%

CPF extends 4% interest  till end 2013

The 4 per cent minimum interest rate on CPF savings

in the Special, Medisave and Retirement Accounts (SMRA)

will be extended till the end of next year.

http://www.todayonline.com/Singapore/EDC120927-0000030/CPF-extends-4-interest-till-end-2013

 

Why is lawyer needed?

Loan redemption's puzzling protocol

Why is a lawyer needed

for the transfer of title deeds to the home owners,

 

and why are all legal costs

borne by the home buyers?

 

Online

http://www.straitstimes.com/premium/forum-letters/story/loan-redemptions-puzzling-protocol-20120927

 

Cash and voucher incentives

Dear Mr. Tan

Singaporeans know that they need insurance to provide for their family
should the insured passed away.  There are many products in the market
provided by the various insurers which is good as it gives consumers a
wide variety of choice to select the best product for themselves.

Sad to say, because of the competitiveness among insurers, the
insurers resort to giving cash or voucher incentives to agents to help
them push their products.  These incentives are on top of their
commissions.  Example some insurer give as much as $3,000 cash should
they sell $x premiums worth of their products.

With MAS currently looking into FAIR for the Industry, these insurers
resort to giving incentives which may cause agents to be 'product
pushers'.

If a product is good and meets the insured needs, no matter whether
there is incentives or not, a competent agent will recommend to their
client.

On the other hand, insurers are undermining agents professionalism by
entising them to sell their products by giving these incentives.

Maybe it is time, this should be put to a stop.

Insurance Agent

Telling lies through a proxy

The following comments apply to unethical agents, and do not apply to agents who act honestly.

If an insurance agent tells the truth about a life insurance policy, it is likely that the customer will not buy it, because the yield on the long term savings is rather bad. The agent has to resort to half or full lies to get the customer to buy the product. An example, is that the policy can give a yield of 9% because the funds are invested in good emerging markets. The chance of achieving this type of yield, net of expenses, is really quite remote.

It will be inexcusable for an experienced agent to make this type of misrepresentation. The way out is to be an agency leader and to make these statements to the energetic recruits about the "benefits" of the life insurance policy. The new agent does not know that these statements are untrue, and goes about with enthusiasm to spread the word to family and friends.

It is easier to make a false statement when one does not even know that it is false!

Student debts

Is is sad to spend so much money to get a degree and still be unable to find a job. This is the experience of many young people in America and other countries. The high unemployment rate of young people will be quite damaging for society. We need a new economic and social order to solve this problem. What do you think are the "out of the box" solutions?

http://money.cnn.com/2012/09/26/news/economy/student-loans/index.html?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Improve the public transport information

The government is spending $1.1 billion to improve the bus services. Most of the funds will be 

used to purchase buses and to subsidize the salaries of drivers.

I suggest that some of the funds be used to improve the information system and make it easy 

for commuters to use the bus services.

Commuters like to know the following:

• The bus service to take and the place to make a connection
•  Waiting time for the bus to arrive
•  Where to alight from the bus

The Land Transport Authority can make the bus arrival information available for developers 

to develop mobile apps that can provide the above information. Mobile tablets can be installed at all 

bus stops to provide bus arrival information at a modest budget and can be implemented quickly.

There are already existing apps that help commuters to get the best connections using the buses 

and trains. LTA can educate the public on the use of these apps.

Many commuters avoid the use of buses due to lack of awareness about the bus services 

to use.   If they have easy access to the information, more passengers may find the 

bus services to be more convenient.

The buses should also have an electronic display to show the stop number and name of the 

bus stop. This will make it easy for the passengers to alight at the right stop. This simple 

and useful  display is used in several cities, including London, Hong Kong and Shenzhen.

With more convenient connections, I am confident that many car drivers will opt to give up 

their cars and take public transport. I am personally one of the converts.

I hope that the Land Transport Authority will implement some of these suggestions quickly 

to improve the public transport system in Singapore.

Tan Kin Lian 

Link between Raffles Place MRT to Marina Bay Financial Center

I visited a friend who works at the Marina Bay Financial Center. It comprise of three tower blocks. DBS Bank has just moved there.

There is an escalator that goes to Marina Bay Link Mall, which is at basement level. It is possible to walk on the underground passage all the way to Raffles Place MRT passing through several shops and eating places.

There is no need to walk at road level, and face the risk of traffic. This is an interesting part of city life in Singapore that is familiar to the people working there, but is not generally known. I only discovered this link today.

Sad stories of people who lost money on fraudulent schemes

Mr. Goh (not his real name) is in his late 50s and now works as a security guard at Midview City. He told me that he had invested his life savings in a land banking product and is not able to get his money back. It must be the product which guarantees a return of the principal and interest at 10% after one year. His wife is very angry with him.

Without any savings, he now has to work long hours as a security guard at a miserable pay. He is very angry at the Government and Monetary Authority of Singapore for failing to stop this land banking company to cheat people like him.

Mr. Lee (not his real name) sought my help a few months ago. His wife had wanted to invest in the gold scheme, which pays 2% every month for and promised to return the 100% of the capital at the end of 3 months. She had stayed away from the product for one year, after reading my advice to avoid it.

Her friends had had invested in the scheme and were able to collect the 2% return quite safely. To catch up for the lost time, the wife and her family had put in a large part of their savings in the scheme, against the advice of Mr. Lee.

Mr. Lee has now read in the newspaper that the company promoting the gold scheme had been sued by another investor and did not appear in court to contest the case. Mr. Lee is worried that his wife still had a lot of money invested in that company, and could suffer the loss. He wondered why the Government did not take action earlier to stop this operation.

The lack of action of the authority has led to so many losses from naive investors. In Malaysia, these operations had been closed down by the Government, but they were allowed to continue in Singapore, leading to a false sense of security of the public.

Our government leaders can say that these investors did not open their eyes and were greedy.  This is not such a simple matter. Like Mr Lee, he tried to tell his wife to avoid the investment, but she would not listen.

Distorted views about taxes

US Presidential Candidate made a remark about taxes and low income people that was damaging to his campaign. He is out of touch with the reality.

Many of our Singapore leaders, who are elites and earn high incomes, hold the same distorted views.

http://singaporemind.blogspot.sg/2012/09/taxes-and-distorted-perception-held-by.html

Fisca.sg

There are several articles of interest for consumers to read in the FISCA  website.
http://easyapps.sg/assn/Org/Staff1/Information.aspx

A loyal new citizen of Australia

It is interesting to hear the remarks of Steve Wozniak who is choosing to be a citizen of Australia
http://www.cnbc.com//id/49159225

Germany is able to create jobs

This is an interesting study on how jobs are created in Germany that have high wages.
http://www.cnbc.com//id/49158696

Gold trading firm taken to court by customer

Gold trading firm

taken to court by customer

She wins interim judgment;

other lawsuits may follow.

http://www.businesstimes.com.sg/premium/top-stories/gold-trading-firm-taken-court-customer-20120925

 

The Ministry of Trade and Industry has released this paper. One recommendation is to improve productivity of our businesses. I have given many feedback about the time wasted in submitted mandatory returns to government agencies, such as CPF, MOM, ACRA, IRAS, SAF and other agencies and accessing information from government websites on these regulatory requirements. Many of the feedback were sent to the Pro-Enterprise Panel under MTI. I hope that the Minister will get his senior officials to contact me and understand the issues that I have raised.

http://www.todayonline.com/Singapore/EDC120925-0000108/MTI-releases-Occasional-Paper-on-population-and-economy

12 people became 13 people

I received this by e-mail. The 12 people became 13.
Do you know where the additional person came from?

Misleading yield on life insurance policy

If you find a new life insurance policy that gives you an attractive yield on maturity - be careful. It can be misleading. Here is how you can find out.

http://tankinlian.com/FramePDF.aspx?ID=668

Top blue chips and REITS - August 2012

Here are the top blue chips, sorted by dividend yield, as at 31 August 2012
http://tankinlian.com/admin/file.aspx?id=685&IID=689

Here are the top REITS, sorted by dividend yield, as at 31 August 2012
http://tankinlian.com/admin/file.aspx?id=684&IID=688

Punishing the very poor

I share the views expressed by Alex Au and like to see the law changed
http://yawningbread.wordpress.com/2012/09/25/torturing-the-poorest-of-the-poor-in-the-name-of-law-and-order/

Skewed maturity benefit projections

Some life insurance companies have introduced new policies with skewed maturity benefit projections. They seem to give an attractive yield on maturity but the yield during most of the terms are poor. I find this type of projection to be unacceptable, as the life insurance company is not distributing the bonus in a fair manner. The bonus distribution is quite arbitrary. The danger of this type of projection is that the insurance company may reject the projected maturity payout on the grounds that they are only projections and the investment climate is bad. I advice consumers to avoid all types of life insurance policies with skewed maturity payout - i.e. if the bonus is quite low for most of the years but is bumped up towards maturity. See an example here:

http://tankinlian.com/FramePDF.aspx?ID=668

Bank fees

Banks in America are now charging a fee for the use of ATM and for their check accounts. This trend will come to Singapore. Read www.fisca.sg (Information). 

Layoffs in banks

Many graduates like to work for the banks, because they pay higher salaries. But, they should be aware of a global trend in layoff bank workers. Read www.fisca.sg (Information) for my analysis of this trend. 

Raise taxes on the rich everywhere

The global economic is in bad shape because the most wealthy and top income earners pay too little tax. The  governments do not collect enough revenue to pay for the services and expenditures, including the welfare for the very poor. These governments have run large deficits which are not sustainable.

To overcome this budget deficit, the governments have to raise the tax revenue on the very rich who are earning a disproportionate share of the national income. Different tax rates in various countries allow the rich people to use creative accounting to move their earnings to countries that charge the lowest rate of tax. This "beggar thy neighbor" competition, including tax havens, is causing further damage to the global system.

A possible solution, as advanced by Hilary Clinton, is to "raised taxes on the rich everywhere". It requires an international agreement. It is a necessary step to solve the global financial and economic malaise.

Read this article
http://www.cnbc.com//id/49150934

SAF Portal

I had to apply for make-up pay for the reservist training attended by my 

employee. My login, with SingPass, to the SAF portal was rejected for 

some unknown reason. I received a message to call the SAF call center

1800-3676767

The automated messages programmed at the call center was quite inconsiderate.

I was asked first to identify my category - whether I was in SAF or Home Team. I 

did not fit into it. But there was no other option.

I tried SAF and was led to another automated message listing a number of

enquiry types. Again, I fitted into none of the pre-arranged choices. I tried the closest

choice and had to wait for someone to pick up the call. No one picked up the call. I gave up.

I sent my enquiry by e-mail and received a reply to call the same call center 

number.

My employee agreed to submit a manually filled form and asked me to sign and 

stamp it. Subsequently, I still received an e-mail to verify some transaction in the

SAF portal. My login to the portal failed again. 

I received the same message to call the call center. I tried and once again, 

got lost among the automated messages.

This transaction must have wasted two hours of my time. I wonder how many 

employers faced the same type of difficulty. Surely, it is time for SAF to wake up

and change their process? Surely a form that is signed by the employee and 

employer is sufficient and does not need to be re-verified? 

Can our economy afford to waste so much time on these mindless processes?

Tan Kin Lian

The power of statistics and the National Conversation

My survey on the Ferrari crash is a good example of the power of statistics.

The survey asked the participants to give their views on the decision of the insurance company to deny liability for the accident as the Ferrari was driven recklessly. The first 10 replies showed an equal balance between those who support and those who do not support the decision. The same results were reflected based on the first 20 replies, the first 30 replies, the first 40 replies and now a total of 50 replies. The results were split evenly based on all the progressive reports.

Clearly, this is a matter where the public is evenly split on this matter. Those who support the decision of the insurance company felt that reckless driving should be punished. Those who disagree with the decision felt that the insurance company should abide by its contractual obligations.

If a survey is carried out in an unbiased manner, the results for the first (say) 25 replies tend to be representative of the views of the population.

Perhaps the National Conversation should be assisted by survey results on several important topics affecting the people of Singapore. The survey can be based on 100 people, who are selected to represent the population. Several survey can be carried out with on different topics and can involve a different group of people - to reduce the stress on any single person answering too many questions.

The Police does not know the law!

The quality of governance in Singapore has been deteriorating over the past two decades. Here is another example of a shameful state of affairs ....

A report in the newspaper about "rent-a-mob" said,

"Check with lawyers first, police say. Want a flash mob? Speak to a lawyer first. This is the advice from the police .... To avoid running afoul of the laws, organizers and participants should seek advice from their own legal counsel before organizing or participating in flash mobs. "

If the police, who is supposed to enforce the law, does not know what is or is not legal, how would an ordinary lawyer know? How would the public know? How would the police react, if a complaint is received from the public?

Is this a satisfactory state of affairs? We have seen many examples about one government agency pushing responsibility to another, and that has become the standard operating procedure in Singapore.

I leave it to Prime Minister Lee to reflect on this state of affairs, and to instruct his Law Minister and Home Affairs Minister to do something about making the law clearer to the citizens and to the law enforcers.

Corruption in Singapore

Mr. Feed has his interpretation of corruption in Singapore.
http://feedmetothefish.blogspot.sg/2012/09/cpib-what-is-corruption-in-singapore.html

Mobile apps and contests

My staff is introducing a few mobile apps that are good for training children and adults. You can also participate in weekly contests to win prizes. Go to www.facebook.com/tankinlianassociates.

Affordable housing prices

It seems that China has a better approach in keeping housing affordable, rather than let the prices escalate under the concept of "asset enhancement". http://www.cnbc.com//id/49136883

Insurance claim on Ferrari accident

Do you support the decision of the insurance company to reject the claim on the Ferrari accident?
Give your views in this survey. http://www.surveymonkey.com/s/FP39P6W

Display sequential stop number in the bus

I have written to the newspaper to suggest that the sequential stop number should be displayed when the bus arrives at a stop. This allows the passenger to know if the number of remaining stops before their destination. They can find ask for the stop number before or on boarding the bus.

The newspapers did not publish the suggestion, so I posted in in my blog and facebook. My friend, who visit Hong Kong regularly, told me that the sequential stop number is displayed on buses in Hong Kong and Shenzhen. I asked him to get photos for me.

I hope that the part of the $1.1 billion can be used to implement simple and low cost ideas to make our buses more convenient for consumers.

Interest rate on installment plan

Courts advertised their regular sales. They show the cash price and the installment play for many products. Do you know the interest rate charged on the installment plan? It is 46% per annum. The calculation is shown here. http://tankinlian.com/admin/file.aspx?id=683&IID=687

Innovation in the Financial Industry

Quote from Paul Vocker, former chairman of the US Federal Reserve Board, a highly respected personality:

Volcker has been known to defy the stereotype of a Wall Street insider. A profile in The Week for February 5, 2010, claimed that Volcker doesn't even buy the conventional wisdom that "financial innovation" is necessary for a healthy economy. In fact, he likes to say, "the only useful banking innovation was the invention of the ATM."

 http://en.wikipedia.org/wiki/Paul_Volcker

Danger of low interest rates

Governments around the world have reduce interest rate to almost nil, in their attempt to stimulate the economy and create jobs. It does not seem to work. In spite of low interest rate for more than a year in America and Europe, unemployment remained at a high level.

The low interest rate has caused asset bubbles to form in the property and stock markets around the world. It has also damaged the earnings of retirees who gets almost nothing for their savings. The harm that is posed by low interest rate is quite serious and is not being recognized. The longer it continues, the worse will be the bubble and other damages.

In the near future, people will abandon cash and buy gold and other commodities. This is already happening and may become a flood. This may lead to high inflation, as money is being abandoned. We may have to study the hyper inflation in Germany in the 1930s to understand how this situation will play out. Read this article.

Governments can combat inflation by increasing the interest rate. This happened in the 1980s under President Reagan. Paul Vocker was the head of the US Fed. Read this article.

Will we have high inflation to be followed by high interest rate?  We have to watch the events closely!

F1 extended till 2017

It is good news that F1 has been extended by another five years. After so much money has been spent during the first 5 years, it would be a waste if the race is stopped. http://www.todayonline.com/Sports/EDC120922-0000074/Singapore-Grand-Prix-contract-extended-until-2017

The estimated increase in tourist spending is $150 million a year. The cost of organizing the race is stated to be $150 million, of which the government pays 60%. I have checked and this is the cost for each year's race. So, we are spending $150 million to get $150 million in tourist revenue.

Why Nations Fail

Read this summary by Lucky Tan
http://singaporemind.blogspot.sg/2012/09/why-nations-fail.html


Quote:

Why Nations Fail

There is an interesting book by Daron Acemoglu. an MIT economist and James A Robinson.a political scientist from Harvard. When they talk about failure, it is not a country disappearing or wipe off from the map but a failure of its socio-economic and political systems leading to abrupt change or revolutions.
.
You should read the book in its entirety but in case you don't have time, as usual, I'll summarise its findings for you.
.
"Countries such as Great Britain and the United States became rich because their citizens overthrew the elites who controlled power and created a society where political rights were much more broadly distributed, where the government was accountable and responsive to citizens, and where the great mass of people could take advantage of economic opportunities" - Extract from the book. 

Ferrari Crash - two views

FATAL FERRARI CRASH

 

Insurer right to refuse claim...

Michael Ng

 

I DISAGREE with Mr Tan Kin Lian's observations and conclusions

("Ferrari crash: Regulator should step in"; Tuesday).

 

While consumer protection is a laudable goal that should be rigorously pursued,

there is a line between vigilant protection of consumers

and indiscriminately criticising finance-related companies.

http://www.straitstimes.com/premium/forum-letters/story/insurer-right-refuse-claim-20120922

 

 

 

... If that is so, why charge higher premiums?

G. Krishnamurthi

 

I HOPE the Insurance Commissioner addresses the point

raised by Mr Tan Kin Lian on Tuesday

("Ferrari crash: Regulator should step in").

 

Aren't higher premiums meant to cover the insurers,

partly against the higher risk of exactly such claims of negligence

expected from such drivers?

http://www.straitstimes.com/premium/forum-letters/story/if-so-why-charge-higher-premiums-20120922

 

ACRA returns

I received a reminder to file my ACRA returns. I acted promptly on the reminder

but had to pay a filing fee of $20 and a penalty of $120 for filing the returns late. 

ACRA did not remind me earlier. 

I was not given a copy of my own filing, in spite of paying the filing fee. I needed

a copy of my company profile to submit to another government agency. I had to 

pay $5.50 to buy my own profile. Apart from this payment, there was the 

added inconvenience of making a payment by credit card.

I suggest that ACRA should waive the filing fee, and also make a copy of the 

company profile available at no charge to each entity that files its return.

Interest rate on installment plan

During festive seasons, you can see advertisements of consumer products that can be bought for cash or installment plan. This article shows you you can calculate the interest rate on an installment plan. The interest rate paid by consumers is much higher than they are aware of. http://tankinlian.com/admin/file.aspx?id=683&IID=687

To avoid paying the high interest rate, consumers should learn how to manage their finances. They can attend the course on financial planning conducted by FISCA, www.fisca.sg

Access to AMD Register

21 September 2012

Editor

Forum Page

Straits Times

I am quite disappointed to see this reply from the Ministry of Health (Access to AMD register 
balanced with safeguards on patient confidentiality, ST 21 September)

A large portion of the lengthy letter was written to justify their current practice. The complaint 
from Ms Krishnan was that the hospital does not know about the existence of the AMD. She was
not asking for the actual content of the AMD to be disclosed, but to know that it had existed. 
This is a simple and sensible requirement.

MOH acknowledged in the closing paragraph that they agree with this suggestion and 
will be implementing it. Why can't the reply from MOH go straight to this essential point?  

It is quite strange that up to now, the hospital is still relying on manual access 
to the AMD register.

Tan Kin Lian

Health care system in Canada

Wing Lee, a former Singapore citizen and now a Canadian citizen, shared this perspective about the health care system in Canada.

Dear Kin Lian,

I believe you asked about the Canadian healthcare system which I have delayed in replying.  I have recovered well after 3 weeks in hospital. I am up and about doing my regular routine and catching up with my emails.

The Canadian Healthcare is compulsory for all citizens and permanent residents including Singaporeans or other nationalities working in Canada on assignments. You must be working or living in Canada for at least 3 months before entitlement of the Canadian Healthcare. For individual, the healthcare premium is about $150 per month. For family, there is a group premium. My wife and I paid $116 per month or C$58 each. Most family doctors and patients are friends. For example, my family doctor has been our friend since we immigrated 25 years ago.

In Canada, doctors and healthcare system including nurses, pharmacists, administrators, treat patients like human beings with passion and care. This is something lacking in the Singapore healthcare system.

It is a one class healthcare system regardless if you are in minister or ordinary citizen we all get the same treatment. I do not understand why the Americans are against President Obama. The British are envious of our system. The following two links will give you an idea of the Canadian healthcare.

http://www.bbc.co.uk/news/magazine-19594334

http://www.youtube.com/watch?v=ht7r11uymWc

Canadians are very happy with their healthcare system with more than 80% approval rating.

Cheers
Wing Lee

End of life - no medical bills

Isabel Ling shares this story of her father passing away, with no worry about medical bills.
http://tankinlian.com/admin/file.aspx?id=682&IID=686

Forum to discuss the Internal Security Act

Two NGOs planned to organize a forum to discuss the Internal Securities Act. This has turned out to be a messy affair, with the involvement of the Archbishop of the Catholic Church and the Government. Here is an account from the perspective of one blogger, who is in the center of the controversy.

http://yawningbread.wordpress.com/2012/09/21/three-statements-from-the-government-function-8-and-maruah-on-the-archbishop-affair/

Fee guidelines are helpful to consumers

Here is my letter published in the Straits Times
http://www.straitstimes.com/premium/forum-letters/story/fee-guideline-will-lower-rather-raise-prices-20120921

And a letter from Dr. Yii
http://www.straitstimes.com/premium/forum-letters/story/balance-doctor-prefers-medical-fee-guideline-patients-20120921

And from the Medical Associationi
http://www.straitstimes.com/premium/forum-letters/story/life-or-without-medical-fee-guide-comparison-already-possible-20120921

Fee guidelines are useful

29 September 2012

Editor, Forum Page

Straits Times

Mr. Joshua Seet said that medical fee guidelines may lead to higher prices for everyone 

as it will encourage practitioners to match the recommended guidelines (ST 19 Sep).

I hold a different opinion. The fee guidelines will be helpful to consumers and will also most likely 

lead to lower prices.

I have been approached on several occasions by consumers on how much they should pay in

legal fees to write a will or obtain probate for an estate. The Law 

Society does provide in its website some lawyers that provide the service, but they are not

able to give the fee guideline. The consumer need to call several lawyers just to get an 

indication of the fees.

I have also experienced difficulty in getting the fee to notarize a contract with an overseas party.

My staff had to spend more than two hours just to get the information. A fee guideline would 

have been helpful.  

I am sure that most patients, being consumers,  would welcome the existence of a fee guideline 

for medical treatment as well.

The publication of the fee guidelines will encourage competition and lower prices. Some 

new practices would tell their clients that they are charging lower fees, compared to the guidelines,

because they are newly established or have lower cost of operation. Consumers who

are cost conscious may opt for their services.

If the fee guideline had been published, some reputable practitioners may charge above the 

guidelines. Consumers who accept these fees willingly do not have cause to complain 

that they have been misled.

I urge the Competition Commission to review its stance on fee guidelines that are set

voluntarily by professional associations. They serve not only the interest of their professional

members, but the interest of consumers as well.

Tan Kin Lian
President
Financial Services Consumer Assocation

www.fisca.sg

Be careful of bad workshops

If you meet with an accident and the workshop promises to take care of the repair and make a claim against the third party - be careful about accepting this offer. A few people have got themselves into hot soup.
http://tankinlian.com/admin/file.aspx?id=679&IID=682

FISCA talk - Priorities @ Retirement

More than 300 people have registered for my free talk on "Priorities @ Retirement". This is targeted at older people approaching retirement. To accommodate the large number, the talks will be held in September, October and November.
www.fisca.sg

Adequate CPF for retirement?

Is CPF adequate for young people to retire?
Lucky Tan ask for this matter to be studied carefully.
http://singaporemind.blogspot.sg/2012/09/why-minister-tharmans-claim-needs-to-be.html

Safe investment that yields 5%

Investors who are risk averse want to look for safe investments that give a yield higher than inflation. Here is the tip that I give to people who attend my talks on investment and financial planning. It is what I learned over 40 years and is given free to consumers!
http://tankinlian.com/admin/file.aspx?id=681&IID=685

How Torch died

This is taken from an article "How Doctors Die" by Dr. Ken Murray. 

Summary: Torch had the choice to be treated and prolong his life by four 
months. He went untreated and lived for eight months, and had a memorable 
time with his cousin.

Several years ago, my older cousin Torch (born at home by the light of a flashlight—or
torch) had a seizure that turned out to be the result of lung cancer that had gone to his
brain. I arranged for him to see various specialists, and we learned that with aggressive
treatment of his condition, including three to five hospital visits a week for
chemotherapy, he would live perhaps four months. Ultimately, Torch decided against
any treatment and simply took pills for brain swelling. He moved in with me.

We spent the next eight months doing a bunch of things that he enjoyed, having fun
together like we hadn’t had in decades. We went to Disneyland, his first time. We’d
hang out at home. Torch was a sports nut, and he was very happy to watch sports and
eat my cooking. He even gained a bit of weight, eating his favorite foods rather than
hospital foods. He had no serious pain, and he remained high-spirited. One day, he
didn’t wake up. He spent the next three days in a coma-like sleep and then died. The
cost of his medical care for those eight months, for the one drug he was taking, was
about $20.

Torch was no doctor, but he knew he wanted a life of quality, not just quantity. Don’t
most of us? If there is a state of the art of end-of-life care, it is this: death with dignity.
As for me, my physician has my choices. They were easy to make, as they are for most
physicians. There will be no heroics, and I will go gentle into that good night. Like my
mentor Charlie. Like my cousin Torch. Like my fellow doctors

Lucky Tan's perspective of the National Conversation

Lucky Tan talks sense. Our Prime Minister's approach towards the National Conversation is already getting a lot of skepticism. Perhaps, the PM should read what Lucky Tan has said.
http://singaporemind.blogspot.sg/2012/09/national-conversation-need-for-major.html

End of life care

Society needs to find a better way to handle end of life care.
http://www.bbc.co.uk/news/health-19634617

How doctors die

Many people are worried about the high cost of health care when they fall seriously ill, at an old age. They ask me for solution.

 Why don't we ask the doctors? They also suffer from cancer and organ failure. They also die eventually.  What do they do? How do they pay for the high cost of their own health care?

Be ready for some surprise! Read this article. http://tankinlian.com/admin/file.aspx?id=639&IID=293

Reply from ACRA

Mr Tan Kin Lian, in his letter

"Better processes make for better business sense" (Sept 13),

cited difficulty in filing his company's annual returns through the ACRA's online system.

We again extend our offer to Mr Tan to tell us

if he wants to participate in stakeholder dialogues

and give his views on how we can further improve our systems and processes.

http://www.todayonline.com/Voices/EDC120918-0000125/ACRA-developing-new-electronic-filing-system

Comment
I was invited to attend the stakeholder dialogue. I accepted on 16 April. They
told me that they will invite me. I heard nothing from them for five months. Now
they want to re-invite me, suggested that I was unwilling to participate in their dialogue.

Immigration card

Why are visitors to Singapore still required to complete an immigration card? This practice has been abandoned in many countries, including Malaysia. The visitors passports are scanned and most of the required information can already been obtained from this exercise.

I can think of two reasons for continuing this practice:

a) To collect data for tourism
b) To warn visitors about the severe penalty for drug offences.

Both of these goals can be achieved in more convenient ways, for example:

a) Give a flyer to visitors passing through immigration to warn them about the penalty.
b) The tourism statistics can be obtained through other sources, e.g. occupancy of hotel. Alternatively, a more reliable statistical profile can be obtained through a separate representative survey.

Let us get rid of the immigration card.

Bad investment-linked policies

Most investment linked policies provide a poor return to consumers due to the high charges that are taken away from the savings. Consumers are not aware of this fact. They were told untruths about the projected return and were under the impression that they would get a much higher return than was actually the case. If you have bought an investment-linked policy, you should check the facts here.
http://tankinlian.com/admin/file.aspx?id=680&IID=684

Some investment-linked policies may be acceptable. Do you know the difference? Learn about how to tell the good from the bad policies.

Greater accountability needed for SAF

It is time for National Service to be reviewed as part of the National Conversation
http://www.todayonline.com/Singapore/EDC120918-0000034/Greater-accountability-needed-from-SAF

Modify PSLE

Here is a view from one Member of Parliament
http://www.todayonline.com/Singapore/EDC120918-0000046/MP-echoes-calls-for-PSLE-to-be-scrapped

He asked, "is there an alternative?"

We should use the PSLE to determine who has passed, and who has failed. The passing rate should be 90% or higher. After a person has passed PSLE, he can go to a secondary school near the home, to be decided by ballot. There should not be any good school and bad school. The school is to educate people to be literate, numerate and people of good character. It is not a place for competing to be scholars.

After a few years, we will see a better distribution of students across all schools and the difference between good and bad schools will narrow sharply. All schools will be "good" in their own way - in sports, arts or academia.  It will depend on the talents of the students.

This is my contribution to the National Conversation.

Motor policy covers collision

A slightly edited version of this letter was published in Straits Times today.

15 September 2012

Editor

Forum Page

Straits Times

I agree with the views expressed by Abbas Vakharia "Fatal Ferrari crash: 

Insurer's stance cause for consumer concern" ST 15 Sep 2012.

AXA's insurance policy clearly states that it covers the motor vehicle that is

accidentally damaged by the operation of several named perils, including "collision".

I am puzzled by a statement from AXA reported in Today paper that it covered 

only "accidents" and not "collision".

AXA's policy does have a clause, stating that the policy does not cover "any wilful act 

and/or wilful negligence" of the insured or an authorised driver. 

A "wilful act" means that the Ferrari driver intended to collide into the taxi

and even to take his own life. While the driver was reckless, I cannot image that 

he had intended to cause the collision.

I hope that the Insurance Commissioner's office will discuss this issue with AXA and 

clarify if AXA's stand is justified, based on the circumstances. Consumers need to be

assured that insurance companies will act fairly in meeting their obligations. Special attention is required from the regulator, as motor insurance is 

compulsory by law. 

Tan Kin Lian
President
Financial Services Consumer Association

Solve the immediate priorities

Mr. Feed talks about the immediate priorities that needed to be addressed now.
http://feedmetothefish.blogspot.sg/2012/09/nothing-but-cowpeh-cowbu.html

Renewal of motor insurance

If you have been given stiff terms on renewing your motor insurance, take part in this survey.
http://www.surveymonkey.com/s/9HTWPVV

Internet Trolls are harmful

The Australian Government is taking action to crack down on Internet trolls. One troll harassed a victim to the point of depression and near suicide. http://www.straitstimes.com/breaking-news/world/story/aussie-government-crack-down-internet-trolls-20120916

These trolls are "sick" people who enjoy harassing other people needlessly.

Stiff renewal terms for motor insurance

Motor insurance is compulsory. If you do not make any claim, you enjoy a higher discount (up to 50%) on renewal of the insurance.

If you make a claim, you will lose up to 30% from your discount for each claim. For example, if you earned discount is 50% after five years and make a claim, the discount is reduced to 20%.

However, some insurance companies loads the premium in additional to reducing the discount. This is double penalty. It is an unfair practice.

If you have suffered this type of double penalty in the past, please give the particulars in this survey.
http://www.surveymonkey.com/s/9HTWPVV

Wilful negligence

The AXA motor policy exclude liability due to "wilful act" or "wilful negligence". I searched for a definition of "wilful negligence". The nearest is "gross negligence" or "wilful misconduct". It is explained here:
http://www.blakes.com/english/view_disc.asp?ID=114

Third party claim that failed

If you meet with an accident and wish to engage a workshop to make a third party claim, so as to protect your No Claim Discount, you may end up in a bad situation. Read this incident and avoid this stressful situation.
http://tankinlian.com/admin/file.aspx?id=679&IID=682

A few people had met with this bad situation and sought my help. It seemed to be quite common and many motorist had fell into a trap.

Train the mind

If you want to try some computer games that train the mind, especially for children, go to http://www.facebook.com/TanKinLianAssociates

Bad explanation given by AXA

http://www.todayonline.com/Singapore/EDC120905-0000039/Ferrari-crash-was-not-an-accident--AXA

According to this report in Today paper, the insurer of the Ferrari involved in the fatal crash at Bugis took the view that their policy covers "accidents" and not "collision".

I find this statement from AXA to be ridiculous. A motor insurance policy covers damages and losses arising from collision between the insured vehicle and another vehicle or other object. This is the primary cover provided by a motor insurance policy.

AXA Smart Drive policy clearly states its comprehensive cover to be as follows:

"If during the period of insurance, your Motorcar and its original accessories and spare parts are lost or stolen, or are accidentally damaged by the operation of the following perils:

(i) fire, lightning, thunderbolt, explosion, collision

(ii) convulsions of nature, including flood, earthquake, volcanic eruption, hurricane,cyclone,typhoon, windstorm

(iii) self-ignition

(iv) riot, strike and malicious damage.

Collision is clearly stated to be a peril covered by the policy.

Under the "exclusion clause" of the policy, it is stated that the policy does not cover "any wilful act and/or wilful negligence" of the insured or an authorised driver.

"Wilful" is defined as "intent on having one's own way, headstrong or obstinate". AXA has to prove that the Ferrari driver intended to hit the taxi. While he may be driving recklessly, I cannot imagine that he had intended to hit the taxi or to take his own life. 

Learning Chinese

Gilbert Koh gave some tips on learning Chinese or any foreign language. It is enjoyable and effective.
http://mrwangsaysso.blogspot.sg/2012/09/a-singaporean-in-shanghai.html

Wrong for AXA to reject this claim

I met a senior person in AXA. He asked my views about AXA's rejection of the claims arising from the Ferrari crash. I said that the decision of AXA was wrong.

Read this letter in the Straits Times
http://www.straitstimes.com/premium/forum-letters/story/fatal-ferrari-crash-insurers-stance-cause-consumer-concern-20120915

Here are my reasons.

Motor insurance covers collision arising from an accident. The only way for AXA to reject the cover was if the driver had caused the accident intentionally. It would be difficult for AXA to prove this case. So, it is bad for AXA to reject the claim, on the grounds that the driver was reckless.

Component shares of the ST Index

SGX is removing NOL as a component share of the ST Index and replacing it by another share. Normally, when a share is removed from the Index, its price will drop as the index funds (such as the STI ETF) have to sell the shares). The new share that enters the index will see a price rise. I wonder if this will happen in Singapore?  It will be interesting to watch.

Core values or meritocracy?

Meritocracy is a sacred cow that may need to be slaughtered.http://www.todayonline.com/Singapore/EDC120915-0000036/Core-values-or-meritocracy?

FISCA Talk - Priorities @ Retirement

The talk is fully taken up (100 people have registered). We will be arranging another class, tentatively for 20 October. This will be put up separately for registration.
http://easyapps.sg/assn/Org/Event.aspx?id=5

TKL Associate Facebook

"Like" this page and stand a chance to win books by TKL in the contests held each week
http://www.facebook.com/tklassociate

Financial news for consumers

Keep in touch with financial news for consumers in www.fisca.sg (Information).

Removal of Secondary School Banding

Here are some good news.

12 Sep 2012 :: MOE to remove secondary schools banding
http://sg.sg/schbanding

The Ministry of Education (MOE) will abolish the banding of secondary schools by academic results with immediate effect. It will also remove the Masterplan of Awards (MoA) and reduce the number of school awards from 2014. Instead, MOE will place more emphasis on recognising best practices by schools in delivering a well-rounded education. These changes are in line with MOE's efforts to enable every school to be a good school in delivering a student-centric, values-driven education.

Financial Planning Talk for Near Retirees

I am conducting a 3 hour talk on financial planning for people who are
approaching retirement age.

The fee for this talk is usually $30, but it is now provided free as the
cost is sponsored by Singapore Lifestyle Planners.

The topics for this talk is set out in this brochure
http://www.easyapps.sg/assn/FramePDF.aspx?ID=257

Date: 29 September 2012, Saturday
Time: 2 pm to 5 pm
Venue: SMU Administration Building, Function Room 4.1

If you are interested to attend the talk, please register early here:
http://easyapps.sg/assn/Org/Event.aspx?id=5

The advertisement for this talk will appear in the Straits Times this Friday
and also STclassifieds.sg, so I like to tell you about it earlier before it goes
public, in case you are interested to attend. .

Cheaper at Changi Airport

I visited Guardian Pharmacy at the airport, after passing through immigration. I asked the staff, "are your prices here higher than the shops outside the airport?". He replied, "We charge the same price here in all our outlets. At Changi Airport, we do not charge GST, so you get it cheaper here."

Give the same entitlement to all

I dislike the approach used by the Government to "differentiate" Singaporeans in getting different entitlements to the GST Vouchers and other top-ups based on arbitrary criteria and cutoff points. It does cause difficulty when some people felt that they have been "differentiated" unfairly.  Read this report
http://www.todayonline.com/Voices/EDC120911-0000178/GST-Voucher-criteria-aimed-to-be-fair,-practical

I prefer that approach adopted in Hong Kong where every citizen gets the same amount, regardless of their income level, age or type of house they live in. Hong Kong did not try to "differentiate" and "calibrate". They adopted a simple and fair method of giving the benefits.

Of course, the Hong Kong method gives the billionaire the same benefit as a pauper. Why begrudge the billionaire,who does pay a thousand of times more in tax anyway, and will probably donate this small entitlement to charity. By trying to "differentiate" the rich from the poor, there are many people who fell on the wrong side of the calibration and felt unfairly treated.

Yields on Singapore Government Securities

Based on new issues in 2012
http://tankinlian.com/admin/file.aspx?id=675&IID=678

Based on current prices traded on SGX
http://tankinlian.com/admin/file.aspx?id=676&IID=679

Shortage of manpower

I was at the check-in gate at Changi Airport 80 minutes before departure. The gate was supposed to open at that time. It did not. The security staff, under Certis, were chatting away. A long queue of passengers had formed. After 10 minutes, the security staff beckoned the passenger to proceed for security clearance.

I asked the security staff why they started the clearance 10 minutes after the scheduled time. He said, "shortage of manpower".

This answer is not acceptable to me. We have many Singaporeans who are unemployed. Why can't Certis employ them to meet the manpower shortage? They must be keen to make a profit on their contract, rather to spend more on manpower. As a results, the customer service deteriorated.

This is the consequence of the cost cutting, outsourcing practice of our government and quasi-government agencies. By being short-sighted, they have created a deterioration of service standard. Nobody seem to care about this deteriorating situation. (This is not the first time, as I had experienced a similar delay on my previous trip.

I hope that our government leaders are reading this post.

Survey results

Which government policy should be changed?
http://tankinlian.com/admin/file.aspx?id=677&IID=680

Should we offer discounted HDB flats?
http://tankinlian.com/admin/file.aspx?id=678&IID=681

Exorbitant payments for third party claims

Some motorists were surprised to learn about the large sums paid by their insurers for third party claims. In some cases, the third parties were also at fault, but the insurer paid anyway. In many cases, the amounts paid were exorbitant, e.g. $5000 or $10,000 for a minor damage. The high payments lead to high premium rates and loading on renewal.
Have you experienced this yourself or know of friends who suffered this fate? Share your views here. 

National Conversation - a new name to an old practice

We seem to be having conversation with the people after every general election. I have lost how many times, we had this type of conversation. It is a big effort and usually ends up with the same strategy. We do have nice sounding slogans, such as the "shared values" and the "Swiss standard of living" generated in previous exercises.

http://www.todayonline.com/Singapore/EDC120909-0000043/Key-challenge-of-Spore-conversation-is-managing-expectations--PM-Lee

Why does Singapore need to have this type of exercise? I do not see other countries putting in similar efforts. Well, here is the answer!

In other countries, there are active debates in Parliament. They hold their national conversations all the time in their legislature. Why can't Singapore follow the same approach, and have a more active Parliament?

Stop wasting money and time

5 September 2012 

Editor, Forum Page

Straits Times

Each year, i received envelopes marked "Important, need immediate attention" from 

several listed companies. It contain an option to receive the dividend in script. 

I do not intend to use this option and do not wish to be bothered by this invitation. There is 

no place in the option form for me to "unsubscribe" to this invitation.

I hope that Singapore Exchange will ask the listed companies not to waste money and 

time to send this invitation repeatedly to shareholders who do not have any 

interest to subscribe for further shares. 

The listed companies should ask their shareholders if they wish to opt in for this exercise, 

or give them an option to opt out.

Tan Kin Lian

Results of survey - Affordable HDB flats

87% of Singaporeans express support for a new category of HDB flats that are sold at a 30% discount, but have to be sold back to HDB. Half o the 49 respondents are existing HDB flat owners. Only 20% express "big concern" over the impact on the price of existing HDB flats. 

http://tankinlian.com/FramePDF.aspx?ID=678

Results of Survey on Government Policies

In this survey, 38 people replied on what they like to see as changes in government policy. The results are quite surprising.
http://tankinlian.com/FramePDF.aspx?ID=677