Letter - MAS reviewing need to tweak framework

18 April 2013

Editor

Forum Page

Straits Times

I refer to the letter entitled "MAS reviewing need to tweak framework"

(ST 17 April).

The Monetary Authority of Singapore (MAS) has stated that they currently do not 

regulate schemes that purport to be alternative investments and typically do not

involve an offer of securities.

I wish to point out that two categories of these investments could possibly fall 

under the existing framework that MAS is already responsible to supervise.

A few investment schemes involving the purchase of gold bars promise to return

a fixed rate of interest and the return of capital at the end of the period. This is akin

to taking deposits, which is already regulated by the MAS. The investors were not

buying the gold bars, which were priced above its real market value, but were enticed

by the higher promised return.

Several investment schemes were being promoted that involve the collection of money

from investors into a company to make lucrative investments in projects in emerging

markets. This is similar to the issue of securities. 

MAS has also stated that it is an offence under the law to operate a fraudulent or 

deceptive scheme. Where there are reasons to suspect fraud, they would refer the matter

to the Commercial Affairs Department for investigation.

Many members of the public, including those who have been defrauded, have asked the 

question on where it took so long for the authorities to act on some of these scams, which

had been allowed to carry on for years and to acquire the mantle of authenticity.

I urge the authorities to strengthen its human resources to investigate these suspected

frauds early and to adopt a more pro-active approach in dealing with them. 

For example, if there are reasons to believe that a fraud has been committed but the evidence 

may not be conclusive, they can still ask the operators to discontinue the activity or face a 

charge in court. This may be a sufficient deterrent. 

Let us act early to preserve the good reputation of Singapore as a law abiding country, where

investors find it safe to invest their money here.

Tan Kin Lian

President

Financial Services Consumer Association

Reporting a Lost Item

It is quite troublesome for the owner of a lost item to file a report. Here is an easy and centralized way to deal with this problem.
http://tankinlian.com/admin/file.aspx?id=794&IID=801

Recommendations of the FAIR Panel

I like two recommendations of the FAIR Panel but am disappointed with their decision not to cap the commission on life insurance products. Overall - it s a THUMBS DOWN.
http://tankinlian.com/admin/file.aspx?id=793&IID=800

Short Essay Answer (2)

Here is an example of how to a suitable short essay answer. It shows the importance of having a short introduction or explanation of the question and provide the answer by explaining a few focused points. I hope that this is useful for students taking the examination.

Question:
Suppose that laws were passed that required insurers to charge everyone the same premium for health insurance regardless of age or health status. What effect would that have on the market for health insurance?

Answer:
It is usual for the insurer to charge different premium rates for health insurance according to the age or health status, as they contribute to different expected claims. If laws were passed that require insurers to charge the same premium rate, the likely outcome would be:

1. The low risk people will be subsidizing the high risk people.
2. If health insurance is not compulsory, the low risk people will probably decide not to buy insurance
3. The insurance pool will comprise mainly of high risk people with high expected claims
4. The premium rate will increase for the pool.
5. If the premium is too high, the high risk people cannot afford the insurance. The market for health insurance will fall.

Short essay answers

Over the years, I have marked short essay answers for a final examination. Here are the tips to students on how to get better marks. 
1. Write neatly. 
2. Introduce the question briefly, before you write the answer
3. Focus on a few points and write your answer. 

Here is an example:
Question - What factors are most likely to cause differences in term insurance rates for individuals of the same age.

Answer -
Term insurance pays the sum assured in the event of death of the insured during the period of insurance. The factors that are likely to cause differences in insurance rates for insurances of the same age are:

1. gender, females pay less
2. occupation, low risk occupations pay less
3. health status, healthy peoples pay less
4. smoking habits, non-smokers pay less.

This will give you full 3 marks.

The length of the answer depends on the marks given. Most questions with similar marks should contain about the same length in reply. If you have fewer points, explain slightly more. If you have more points, explain slightly less.

Hope that this is useful for undergraduates preparing for your examinations.

Passing a law

The laws and regulations that are passed are intended to tell people what is right and what is wrong, in law. They may deter most law abiding people, although there will be crooks that will continue to run foul of the law. The possibilities of these crooks should not discourage us from passing the laws.

Recently, I suggested that foreigners who intend to work in Singapore should be required to apply directly for a work pass and be responsible personally for the authenticity of the degrees that they submit. If the degrees are found to be faked, they can be sent to jail or be repatriated immediately.

Currently, the Ministry of Manpower require the employer to submit the papers, so the responsibility is not clear.

Someone replied that the requirement will not work. He quoted the death penalty for drug traffickers, which still does not deter some people from engaging in it.

This is an example of the type of thinking that is quite prevalent in Singapore. He expects the law to work in every case, if not, do not pass the law. I have described this as "thinking only in black and white".

We need to pass the law to make it clear that giving false information is an crime, that comes with severe penalties. We do not expect the law to stop all the abuses. Let the court decide on how to deal with the abuse, when a person is charged.

Be cautious about unregulated investment schemes

When someone markets an investment to you, and tell you about the attractive return that you can get, you have to be very careful. Quite likely, they are exaggerating return to attract you. If you are greedy, and not careful, you will part with your money and may not get it back.

If the marketeer knows that the statements are false, he or she is dishonest. Quite often, the marketeer may be a young person who has just started work, and is taught about the sales pitch. This person (who may be a relative or friend) is not aware that the statement is false. The marketeer is not dishonest, but is gullible and naive, and so is the customer who buys the product.

The marketing of investments without registering a prospectus is illegal, under the law. The marketing of "pay back schemes" is also illegal, as it is tantamount to deposit taking, and a license is required.

In recent years, the people in charge in the regulatory agency did not  know how to deal with these illegal operations, so they have not taken steps.

One day, and I hope in the near future, they will realize that it is their duty to act, and many people will then be arrested. Do not fall in the trap, thinking that the lack of action by the regulator means that the investment scheme has been approved, or is legitimate.

Understand the Benefit Illustration for a ILP

Test your knowledge of how well you can read and understand the Benefit Illustration for an investment-linked policy.
Even if you don't know what to look for, you will get to know it, after reading this article.
You will be shocked to know that so much of your accumulated premium is taken away by the "effect of deduction".
http://tankinlian.com/admin/file.aspx?id=792&IID=799

So many people have invested in an investment-linked policy (ILP) without knowing that they are getting a poor yield.

Fake degree submitted by foreigners

7 April 2013 (not published by St Times)

Editor
Forum Page

Straits Times

Fake degree submitted by Foreigners

I wish to suggest how to deal with the fake degrees submitted by foreigners who wish to work in Singapore.

Under the current system administered by the Ministry of Manpower, the education and other details of the foreigner are provided by the employer  who makes the application for the work pass.

I suggest that these details should be submitted by the foreigner, who are told that 

any false information, such as using a fake degree from a degree mill or using a 

forced certificate will result in the cancellation of the work pass, repatriation or 

imprisonment. This should deter many foreigners from submitting the fake qualifications.

I do not expect the Ministry to carry out a detailed check on each applicant, unless

a whistle has been blown. Alternatively, a random check can be carried out after the work pass has been issued. It is more important to have the deterrent impact by following the new practice. 

Tan Kin Lian

Singapore blue chips and REITS

The data on Singapore blue chips and REITS have been updated to 11 April 2013 in www.fisca.sg available only to members.

Review of Benefit Illustration - Life Insurance

Many young adults, after starting to work, are approached by a lief insurance agent and advised to buy a life insurance policy to get protection against premature death and critical illness and to save for the future.
They are not aware of the negative aspects of the policy and will usually regret their purchase decision a few years later. When they terminate the policy, they will lose several thousand dollars in their savings.
To avoid this loss, they should get an independent review of the policy, before they buy it. Read this article.

http://tankinlian.com/admin/file.aspx?id=791&IID=798

Review of benefit illustration - Retirement plan

In the past years, several retirement plans have been introduced by life insurance companies targeting at cash rich consumers to invest their retirement savings.   If you have been approached to take up such a plan, you must be careful to know its good and bad points. If you wish to have an independent review of and explanation of this plan, and more importantly, to learn a better way to invest your savings, read this paper.  http://tankinlian.com/admin/file.aspx?id=790&IID=797 

Financial Literacy Test

Take this financial literacy test and see if you can trust your own financial decisions.
http://tankinlian.com/admin/file.aspx?id=789&IID=796

Appeal on IMF Loan

Hi Kin LIan,
Our appeal against the HIgh Court decision in the IMF loan suit will be heard in the Supreme Court on 9 April at 2.30pm. I hope that you will be able to attend.
Would you be kind enough to put up a notice about the appeal on your blog?
Regards,
Kenneth Jeyaretnam
Secretary General
Reform Party

The teaching environment in Singapore

Teaching is a good job. I like teaching and have spent the past six years as an adjunct professor. This is not a relief teaching job. I teach one full course. The full time professor usually takes two or three courses. 

I know that teaching has its challenges, whether it is at primary, secondary or tertiary levels. There is a need to manage the expectations of the school, the parents and the teachers. The teacher has to prepare the lesson, present it in a lively manner, mark the student's work and handle admin and extra-curricular activities.

The problem is the heavy work load and "meeting expectations". This is where the teacher can play a part in helping to set the expectations.

Teachers find the appraisal system to be another source of stress. Most of them want to be at the top of the appraisal, and work hard to be at the top. Many get disappointed when they do not achieve the goal, especially if the appraisal system is "not transparent".

I have a different attitude towards the appraisal system. I know that many people have to be average, in order for some to be outstanding. We can do our best to be outstanding, but do not need to over-do it and engaged in politics and other negative behavior. We only need to do our best.

The appraisal of my teaching is average in most terms. I accept this appraisal, although I wished that it was better. I try to change the teaching method and see if I can get a better score the next time round.

I hope that these few points will help our highly stressed teachers to look at the current teaching environment in a different angle, and make teaching to be more enjoyable for them.

Someone said, "We cannot change the environment, but we can change our attitude towards it".

The Government has a duty

There are many scams happening in Singapore and some had been allowed to continue for years. These potential scams include the gold bar schemes, land banking, time sharing, forex training courses, investment schemes and the like.

Apologists for the Government said, "People should take care of themselves. They cannot expect the Government to be a nanny to take care of them all the time."

This statement is quite ridiculous. It comes from people who do not think but just feel comfortable about echoing the Government propaganda.

I do not expect the "authority" to stop all scams. But if someone had reported a potential scam, and the evidence is quite obvious, and the scam is affecting many people, the "authority" should pay attention and see what can be done. It is easy for the "authority" to send someone to attend these events and collect evidence. They can invite the organizers for a chat and advice them about the law on cheating or selling securities without a licence.  The existing laws are sufficient to stop these scams.


It is a breach of duty of the Government to sit idly by and watch more people being caught by the scams.

The excuse, "we do not want to be a nanny state" allows the law enforcement officers to neglect their primary duty.

Kopitiam card

I received an invitation by Kopitiam to visit their new outlet near my home. They sent a Kopitiam card with $2 pre-loaded and waiver of $2 card fee.

I visited the outlet and topped up $10. Their machine accept only notes and do not provide any change. It is easy to use - the best that I have encountered.

The Kopitiam card offered a 10% discount for purchases at their outlet.

This is the best loyalty card that I have experienced. I congratulate Kopitiam for their excellent card and loyalty program. I intend to use the Kopitiam card often.

Note: I do not use the credit card or telephone loyalty points as it is too troublesome for me.

Democracy and efficiency

Lee Cheok Yew said:
Democracy takes a bit more time to get us to the right place, autocracy is very efficient in bringing us to the wrong place.

Banking crisis in Cyprus

http://thestar.com.my/news/story.asp?file=/2013/4/1/focus/12908389&sec=focus

This article explains the banking crisis in Cyprus and traces the root cause - insufficient regulation of the financial sector.

Instant Car Pool ready for testing

The Instant Car Pool is ready for you to test. URL is www.singapore-ICP.com.

1.         This service can also be used by non- drivers willing to pay for a lift, cheaper than taxi fare.

2.         The zone is the first two digit of the postal code. This will be explained in the next revision.

3.         After registration, you can test the app by pretending to be the driver to report driving and after that, pretend to be a passenger asking for a lift from yourself. This gives you the feel of the app.

4.          You can register and test the app using using your mobile phone.

5.         It also shows a map of the location of the passenger.

6.          Both parties can contact each other by pressing the telephone number on the mobile phone.

7.          The identity of the party that you take a ride or give a lift is stored in the server, so you can feel safe that there is a trace, if something happens to you.

Good and bad points of National Service

Stanley Loh Chong Keng asked:

Mr Tan, about NS in Singapore. If I insist you provide one good point of NS, what will you give and why? And if I also insist on you giving a bad point of NS, what will you give also. Thanks!

REPLY
Good point - as told to me by many parents. NS helps to instill the discipline in your sons. The parents cannot control them - so they are happy for the SAF to control them.

Bad points - there are several:
1. Disrupt the tertiary education
2. Place Sgns at a disadvantage compared to foreign workers
3. Delay marriage by 3 years, leading to the decline in birth rate
4. Too long, time wasted doing non-productive duties
5. Instill bad habits - smoking, switch off (but not apply to all NS men)

Singaporeans are not zenophobic

Lovecraft RavenEve said:

I am tired of people saying that singaporeans are xenophobic. Let's look at Hongkong after the 1997 handover as example.

Hongkong has merged with china for the past 16 years. both consist of ethnic Han people but relations are strained between the 2. there are frequent protests in Hongkong because of the unreasonable behaviour of the PRCs e.g. hoarding of milk, education.

what makes them think that we can integrate with the new citizens (pinoys, PRCs, indians etc) within 10 years???

Please read through the comments of Hongkongers against PRC infesting their land!!!!! they do not mince their words like singaporeans! we singaporeans have been very ke qi/ polite already!!!!!!

if what the HongKongers are doing is Xenophobic and morally wrong, why hasn't any NGOs or United Nations or Human Rights group berated them???

https://www.facebook.com/itstimetosayno?ref=ts&fref=ts&filter=1

COMMENT BY TKL
Lovecraft said that, compared to Hongkongers, Singaporeans are more tolerant of foreigners.

Be a policeman

Hi Mr. Tan
I am turning 17 and starting my first year in Poly soon. Will I be able to lead a comfortable life in the future with the pay of a diploma holder? 
Because of the high cost of living, I do not think it is possible for me to own a flat . 
Many people strongly emphasize on further studies to get a degree and earn a higher pay. However, I do not like studying.
I like to sign on with Singapore police force or the military directly after my studies. Many people told me I will have no future being in the uniformed service and if I would find it difficult to work outside after leaving the uniformed service. But my passion is in this field. What should I do?

REPLY
I encourage yoU to follow your passion, and be a policeman or soldier. The advantage is that other people do not like the job, so you have less competition.
If you focus on the job and develop the skill, you can do well. Anyone who has special skill in a job will be appreciated. Do not worry that people are on top of you because of a paper, because when it comes to the crunch, there are many people with paper, but few will real skills.
Never be discouraged and develop a negative attitude. Always be positive, and you will do well.
Wish you all the best for the future.

Conversion of sales employees to independent contractors

Someone asked me:
Income insurance agents are having problems with their employer and its union. What are your thoughts on it?

http://www.tremeritus.com/2013/03/28/do-union-leaders-of-sieu-have-communication-problems/

REPLY
Before I joined NTUC Income in 1977, the sales people were already treated as employees and were eligible for CPF and other employee benefits. 

As employees, they were also allowed to join the trade union. They were able to raise issues to the management through the union. Although difficult at times, these issues could be resolved with goodwill on both sides.

All along, we had treated the commission and bonus earned by them as income, and were subject to CPF contributions and income tax. The incentives given under sales contests were treated as non-income, as they were credited as "points" to be used for the purchase of sales items to be given away to clients. These incentives were relatively small at that time.

I believe that this treatment must have been reviewed with IRAS over the years, and was not aware about any formal objection raised by them.

I understand that the current management of NTUC Income had decided to change the employment status of the sales employees to "independent contractors" following a recent objection raised by IRAS on under-declaration of income which probably referred to the treatment of the sales contest incentives as non-income. 

Even if IRAS were to object to this treatment now, it was possible for the management to start declaring these incentive payments as income, without having to change the status of the sales people as employees. 

I am not aware if there were other reasons to change the status of the sales people and if there were other grievances arising from the change.

I can understand that some of the old timers would probably liked to remain treated as employees, rather than "independent contractors". There are advantages to them of being represented by a trade union who can speak for them collectively and give them a sense of security against unfair dismissal.

I hope that they can resolve the dispute with the management without having to incur the expenses of litigation, which must be a heavy financial burden for them.

Unacceptable fees for using cheques

PRINTED IN THE STAR ONLINE, MALAYSIA

BANK Negara's proposal to increase the cost of using cheques from 15 sen to 65 sen beginning April 2014, is unwarranted and should be withdrawn.

Though Bank Negara wants to encourage consumers to use electronic banking, it is premature to do so as online transactions too have their limits.

Firstly, there is the question of safety and reliability.
Is it safe to transfer large sums of money online?


Losses in Internet banking due to fraud was RM3.2mil in 2012. When more are forced to use online transfer the figure will go up.


From experience we know how difficult it is for consumers to fight the banks when something goes wrong with electronic transfer of money.


The banks invariably reply that their system is running smoothly and the loss has to be borne by the consumers.


Secondly, not everyone is Internet savvy while others do not have access to the Internet.
When consumers feel comfortable with transferring money online, they will automatically start doing so because of its convenience.


Until then, it is not fair for consumers to be penalised for using cheques. 

S.M. MOHAMED IDRIS
President, Consumers Association of Penang

Metropolitan Museum of Art's entrance fee 'deceptive'

 

About six million people attend the New York museum annually

 

The Metropolitan Museum of Art's practice

of requesting a 'recommended' admission fee of $25 (£16)
deceives patrons entitled to pay as little as they choose,

a lawsuit charges.

The lawsuit, filed in New York City on behalf of former patrons,
contends that the world famous museum, which receives six million visitors a year,
uses misleading marketing and cashier training to deceive unwary visitors.

A former employee of the Met may testify, alleging that
cashiers were trained to encourage visitors to pay the full fee by saying things like
'you must realise it is very expensive to run the museum'and that signage was changed from 'suggested' to 'recommended'because administrators believed it would encourage people to pay more..

http://www.bbc.co.uk/news/world-us-canada-21931007

 

 

Museum admission fees help fund operations

 

IN HIS letter last Saturday

("Offer free museum entry to all"),

Mr Tan Kin Lian suggested making museum entry free for all,

including foreign visitors.

 

... by continuing to charge foreign visitors general museum admission fees,

and charging both local and foreign visitors for special exhibitions,

our museums will be able to offer

high-quality exhibitions in a sustainable manner for all to enjoy.

 

Indeed,there are many museums in other countries that provide

free entry to residents, and charge fees to foreign visitors.

 

Yeo Whee Jim

Director

Arts and Heritage Division

Ministry of Culture, Community and Youth

http://www.straitstimes.com/premium/forum-letters/story/museum-admission-fees-help-fund-operations-20130328

 

MY COMMENT

I wrote to Yeo Whee Jim

Dear Mr. Yeo

Thank you for replying to my letter in the Straits Times.

You may have missed my point. I felt that the amount collected from visitors might not justify the money spent to employ people to collect the fees.

Can I ask for a breakdown on the following:

a) How much is spent yearly on staff salaries and other cost to collect admission fees?

b) How much is collected as admission fees from visitors

Prudent steps to a healthier hospital bill

 

 

Some prudent steps can be taken

to bring healthcare costs down.

 

First,

patients must not think that if they are insured,

it is okay not to check hospital bills or query about the bill,

especially at a private hospital.

 

Second,

we must educate healthcare practitioners to be more ethical,

and not take advantage of insurance coverage

by asking patients to do unnecessary tests.

http://www.todayonline.com/voices/prudent-steps-healthier-hospital-bill

Hefty MediShield premiums an improvement?

... many in the 61-65 age group are not working

or working at subsistence level.

How will they continue to afford the premiums,

as the top-up is a one-off assistance?

http://www.todayonline.com/voices/hefty-medishield-premiums-improvement

MY COMMENT

If they cannot afford the Medishield premium, they will find the private Shield, which 

cost 3 to 4 times of Medishield, to be even more unaffordable.

Claim process needs fixing

THE General Insurance Association of Singapore's reply

("Report accidents to insurers"; yesterday)

to Ms Wendy Ang Kweng Gee's letter

("Left in the lurch over car insurance claim"; Monday)

gives rise to more questions

about the effectiveness of the insurance industry in such cases.

http://www.straitstimes.com/premium/forum-letters/story/claim-process-needs-fixing-20130328

Reporting all accidents may not be a good idea

... a leading workshop advised me not to file unnecessary reports,

especially for claims that were unlikely to succeed,

such as those for hit-and-run accidents by unknown culprits.

 

I was also warned about the anticipated long-drawn claim process

against foreign-registered vehicles.

 

I was told that making too many reports

could result in insurers categorising one as a high-risk driver,

and raising the insurance premium.

 

Also, why are accident reports by third parties

not communicated promptly to the parties involved,

unless one asks for them?

http://www.straitstimes.com/premium/forum-letters/story/reporting-all-accidents-may-not-be-good-idea-20130328

 

A Sincere Statement

Let it be clear that the Opposition and their supporters are not a bunch of crazies who want trouble and nothing. Like all Singaporeans, we want to live in a healthy, happy environment, and are also willing to work hard for it. We also want to see prosperity, peace and stability.

The difference is that we know that to enjoy all these, there needs to be a significant shift in the way our country is run, in the way our policies are implemented and our politics played. Real stability, real peace, real prosperity are what we are looking for. And that cannot be at the expense of our individual citizens. 

The days of the old empire must be put aside. The light of enlightenment must befall our shores. The dream we want to achieve will come and must come in order for us, all of us, to sleep in peace at night and thrive in the mornings.

It is not about dismantling what need not be dismantled. It is about replacing what should be. It is about building a new world, a safer, fairer, better world, for people to live in. 

It is as much about patriotism as it is about the dignity shared by all mankind. It is as much about economy as it is about society and welfare. It is as much about material as well as emotional things. 

We must spread the message, that we come with love, with a desire to better Singapore, with inclusivity and compassion, strong will and big hearts. 

We are not petty little people, or noisy nuisances. We will make a big impact, be a big voice and lead the big example for the change of tomorrow. 

We will..' -via The New Era

Sgc Ommoner

Car hit from behind

Letter in ST forum. 

LAST July, my car was hit from behind by another car.

I reported the accident to the insurance firm-designated workshop, thinking I could go ahead with the repairs.

However, half a year passed with no progress. The workshop said the insurance company was sitting on the claim.

When I called the insurance company, it said the other driver never reported the incident, so it could not proceed with the claim. I made a police report but the police said they would not take action as there was no injury.

I later found out that the other driver and I had policies under the same insurance company.

Is this the way an insurance company acts on claims? Is there a loophole somewhere?

My car was damaged but I cannot receive compensation even though it was not my fault.

The insurance company asked me to claim on my own insurance or go to a lawyer, for which I would have to cough out more money. I am at my wits' end.

MY VIEW

When you meet with an accident, report to your insurance company and let them handle the repair and recovery from the third party. Don't try to get your workshop to make a third party claim - as you may face this difficulty. If you make a claim on your own insurance policy, you will lose the No Claim Bonus (up to 30% only). If the accident is obviously the fault of the other party, a good insurance company may allow your NCB - so look for a good one.

Seek appropriate health care

22 March 2013

Editor

Forum Page

Straits Times

The Minister of Health wants to review the health care system to make it more affordable to the public.  I wish to bring forward the following issue for his consideration in this review. 

When a person gets old, say beyond 80 years, some organs are likely to fail, or cancer will creep in. It is a matter of time before they have to say goodbye. There is nothing much that can be done to "cure" the illness. Even if expensive treatment is carried out successfully, other parts of the body will fail. This is 

described as "complications".

Treatment has its risks. some people die earlier due to the treatment. If they are untreated, they might, in some cases, live longer and have a better quality of life for their remaining months.

Trying to treat old people, and often with unsuccessful results, is the source of escalating health care costs in many countries, including Singapore. Using private medical insurance or increasing the public funding to pay for these expenses is not the solution. We need a more sensible approach towards this issue. 

Some types of treatment should be encouraged and other types should be discouraged, and these rules should be made by medical experts who do not have any vested interest.

If the family receives impartial and proper advice on what can and cannot be treated, they will save a lot of pain and anguish for their elderly parents and also avoid spending a lot of money on futile treatment in the mistaken belief that they are doing the best for their parents. 

This will also stop the country from wasting a lot of resources that can be put to better use.

Tan Kin Lian

Bon Appetit

Making life difficult for the public

Read this document to understand the trouble that the public has to go through to submit an online application to a government agency. The people who design the websites are most inconsiderate, and waste a lot of time of the public with pages of unnecessary and misleading information, and breaks up their forms into many web-pages with a high risk of wrong navigation, browser error and internet connection issues. 

I have sent this letter to the Acting Minister for Manpower. 

I experienced similar difficulties with many government agencies. They follow the same approach - make life easy for themselves and give "hell" to the public. 

http://tankinlian.com/Admin/File.aspx?ID=781&Frame=1

Seminar on Population White Paper, 23 March 2013

Here is the text of the speech by Tan Kin Lian
http://tankinlian.com/admin/file.aspx?id=782&IID=789

Here are the slides
http://tankinlian.com/admin/file.aspx?id=783&IID=790

Are credit card charges too high?

19 March 2013

Editor

Forum Page,
Straits Times

You have printed three letters on 19 March regarding credit card

surcharge, "Cab firm right to take a stand", "Enforce fair trade

practices", and "Budget carriers profiteering via convenience fees".

They continue arguments on the party that should bear the credit card fees. 

I like to ask the question, "why should the credit card charge be 

as high as 3 to 5% of the transaction ? " For an transaction of $500, the 

charge can be $25.

I know that the card issuer, which is usually a bank, carry the credit risk. 

But they do have the means of checking which customers have

sufficient balances in their bank account, and do not merit this charge.

Perhaps these banks are profiteering at the expense of the

merchant and their customers?

I understand that the Association of Banks (ABS) is introducing the Online

Giro by the end of this year. I like to ask if this new facility allow 

customers to make online payment, without having to incur this high

charge for use of credit cards?

As the ABS is an association representing the interest of the banks, I 

like to ask the Monetary Authority of Singapore to give their comments 

as well. 

Perhaps MAS should also comment on whether they have a 

role to ensure that credit card charges are fair to consumers?

Tan Kin Lian

President

Financial Services Consumer Association

Free entry to museums

16 March 2015

Editor, Forum Page

Straits Times

The National Heritage Board collects an annual admission 

revenue of $2 million and spends $151 million to maintain 

the museums during the last financial year. 

The Acting Minister of Culture, Community and Youth has

announced that his Ministry plans to provide free entry to 

museums for Singaporeans and permanent residents.

I suggest that free entries should be provided to everyone, 

including tourists and non-residents.

I suspect that the amount of admission fees that can be 

collected from these sources will probably not cover the

cost of the employees who are involved in collecting and

accounting for the revenue. 

Tourists spend a lot of money when they visit Singapore. 

Why ask them to pay a few dollars in admission fees?

Many countries provide free entry to museums and do not

attempt to differentiate between residents and non-residents.

Tan Kin Lian

Paying road tax electronically

This letter is sent to LTA, DBS and MAS. It shows my experience in paying road tax electronically. The process is extremely troublesome. To use a crude word, IT SUCKS.
http://tankinlian.com/admin/file.aspx?id=780&IID=787

Cost of medical treatment

The cost of medical treatment may not be as expensive as most people feared.
http://tankinlian.com/admin/file.aspx?id=778&IID=785

Why life insurers make so much profit

A former colleague went to work for an international insurance group that has a successful operation in Singapore and other countries in Asia. 

He told me, "Mr. Tan, the business of this company is so profitable, that you will be surprised. They can make a profit in one year what you made in NTUC Income for 30 years. "

Just think. How does a life insurance company make its profits? Especially after they paid tens of millions in commission to its agents each year. Where does the money come from to pay the commission and the large profits?

Yes. It comes from the policyholders. The unsuspecting people who are told that life insurance is the best way to protect your family and to get your money back

This is a bad solution. This is why I try hard to pass the message to young Singaporeans. If you put your savings in the investment linked policies or other policies of these insurers, take a look at the benefit illustration. It will take you 15 years to break even, i.e. for the cash value to pay back the total premium that you have paid.

If you invest the same premium in an index fund, your savings is likely to grow by 50% AFTER ALLOWING FOR THE COST OF TERM INSURANCE.

Do you want your savings of $6,000 a year to reach $90,000 in 15 years (i.e. break even) or $135,000 (50% more)? The difference is $45,000.

Tips on buying insurance

Here are some tips about buying insurance ....

1. Buy insurance for the risks that have a severe impact that you or your family cannot bear. Do not buy insurance for small losses that you can afford to bear.

2. Make sure that you pay a fair rate of premium, relative to the expect cost of the loss, and are not overcharged.

Rule 1 means that you should insure the major risks, such as loss of life, property or car. You do not need to insure for small losses, such as $500 for the loss of a baggage, as you can afford to bear this loss on your own.

Rule 2 means that you do not pay $100 for a risk that should cost only $10. If you have a 0.1% chance of incurring a medical bill of $50,000, you should pay not  more than $100 (i.e. $50 for the expected loss and $50 for the expenses and profit of the insurance company). You should not, for example, pay $500 to cover this risk.

To apply rule 2, you have to find out what is charged by a few insurance company for the same risk. You have to find out for yourself.  You should not rely on the agent alone, as the agent want you to buy the policy recommended by him (for obvious reason).

You should never buy a product where it is difficult for you to understand and to compare. (Most people make this mistake. This is how the insurance company make so much profit).

Lost & Found Portal

I saw this poster at the bus stop opposite Thomson Plaza. The owner is offering a reward of $500 for the lost dog. The dog was lost in Yio Chu Kang, so the owner had to go quite far to put up this poster. 
I will be rebuilding the lost and found portal, to help people to post lost items online ...

Managing risk and uncertainty

Michael Lee asked:
Mr Tan, wad do you mean by taking risk ? Wad kind of risk are you referring to?

REPLY
Risk means uncertainty. We have to accept some risk and have a sensible approach to manage risk. We cannot eliminate all risk and pay a lot of money to eliminate risk totally.

There is a 1 in 5 million chance of being killed on the road each day. One person die in a road accident. We accept this risk, and don't stay at home ...

There is a risk of being sued for defamation, especially by rich and powerful people. if we express our views. We still give our views and accept the risk.

There is a risk of being sued for copyright infringement if I copy an image from the internet. I accept the risk and see if anyone make a claim. So far, none.

If we invest in shares, there is a risk that it can go up or come down. We accept the risk. We don't just ask for "guarantee". People who want guarantee, end up losing all their money when they were misled. This happened with the mini-bond type of investments.

There is a risk of losing your baggage or missing your flight when you travel. You can accept the risk and avoid paying $30 for each trip. It is not worth buying insurance for small losses.

If you want to buy insurance, make sure you pay a fair price. If the insurance should cost $200, don't pay $2,000, just because the agent exaggerate the likelihood of the loss.

Seminar on Population White Paper

Transitioning.org is organising a seminar event focusing on the 6.9 million population white paper and other matters that affect Singaporeans. 

Date:     23 Mar (Sat)
Time:    2pm to 5pm
Venue: NVPC seminar room,
             6 Eu Tong Sen Street #04-88
             The Central Clarke Quay S(059817).

You are invited to attend. Register here:
http://www.transitioning.org/2013/03/13/seminar-event-on-23-march-sat-at-2pm-at-nvpc/

Update on Instant Car Pool

More information about the Instant Car Pool 

Demo site:
www.tklcloud.com/icp

Jakarta
http://tankinlian.com/admin/file.aspx?id=770&IID=777

Singapore
http://tankinlian.com/admin/file.aspx?id=769&IID=776

User Guide
http://tankinlian.com/admin/file.aspx?id=777&IID=784

Letter to LTA
http://tankinlian.com/admin/file.aspx?id=776&IID=783