Monday, August 24, 2009

A Sense of Duty

We need to re-install in each person a sense of duty.

If you are a doctor, it is your duty to treat and cure the patient. If you are a teacher, it is your duty to teach the students well. You receive a salary or fee for your service. When you accept the job, you accept the terms of your engagement and undertake to carry out your duty to the best of your ability.

In a corrupt society, government officials need to be bribed to do their duty. They may be bribed to break the rules in favour of the briber or just to carry out their duty according to the rules or what is expected of them.

Singapore is fortunate to have stayed clear of corruption and to have a public administration that is largely free of bribery. The few cases of bribery are prosecuted.

However, in recent years, there is a worrying trend. The sense of duty seems to have been eroded. Many people now expect to be incentivised to do a job well.

Corporate executives, who already earn a high remuneration, are now given incentives (through profit sharing or stock options) to increase their company’s profits. If they want to, they can increase the profits in unethical ways, such as over-charging or cheating the customers, delivering a lower quality of product or exploiting the workers.

Financial advisers rush to sell financial products to earn an attractive commission. Many forget that it is their duty to understand the product and ensure its suitability for customers. The lure of earning the attractive commission overcomes the sense of duty. Many neglected their duty and unknowingly mis-represented the product. Some knew but joined the bandwagon anyway. A similar situation applies to the property market.

There has been a serious decline in the standard of protection for consumers and workers. The government authorities are now less active in prosecuting cases of public interest and prefer to leave these matters to be sorted out by free market.

Consumers are asked to take legal action to seek redress. But consumers do not have the financial means to take legal action against large businesses who have access to the best lawyers anyway.

Local workers are also affected by depressed wages due to the influx of foreign workers and are not protected by a minimum wage policy. Many have to accept wage rates that are inadequate to provide a decent standard of living and have to work long hours to make up.

In this pro-business environment, where consumers and workers are not adequately protected, it is not surprising that businesses can rake up high profits, giving million dollar income to their top executives. Successful professionals, such as lawyers and doctors, can also earn million dollar incomes.

It is rather sad that the remunerations of our government leaders are now benchmark against the earnings of these top business executives and professionals. If the leaders are chasing the top dollars, who will look after the interest of the ordinary workers, the consumers and the other weak people in our society?

Tan Kin Lian

18 comments:

Anonymous said...

that this kind of unethical behavior is not acceptable anymore

( sorry..first part of comment accidentally posted )

Anonymous said...

Very good post by Mr Tan

A suggestion though : would be easier on the eye if the color of such "highlighted " postings are in dark blue or some other color that is less intense than bold red !

Tan Kin Lian said...

I hope that you find this color to be better.

Anonymous said...

Maybe you can check New York Times (http://www.nytimes.com/). Their headings are in "blue black" ( color code : #004276) so headings can be in bold #004276 and text can be #004276 ie not bold.

Or something close to #004276 :)

Usually, web designers avoid text which are in bold and in CAPITAL letters and colors that are hard on the eyes!

Anonymous said...

Money is the root of all evils.

For the sake of money, people resort to use all means to earn that extra buck.

starlight

Anonymous said...

(sorry 1st part of my earlier comment cut ...)
==============================================

This is an excellent post by Mr Tan.

Just look at UBS as an example.They assisted clients smuggle diamonds in toothpaste and thousands of wealthy Americans used them to hide their wealth from US tax authorities.

And GIC is the largest shareholder of UBS!

Good honest people like Mr Tan need to stand up and CONTINUOUSLY raise awareness amongst Singaporeans that this sort of dishonest, unethical behavior is unacceptable and cannot continue indefinitely.

Anonymous said...

Mr. Tan, I suggest that you send this to ST forum to inform a wider audience. Many consumers still do not their rights and too trusting to question their agents.
MAS has already proposed to the insurers the removal of commission as commission is not an equitable way of remuneration. The consumers are short changed and mis -sold as a result.

Anonymous said...

High commission = low protection = under insurance
In the LIA's report sale went up by as much 40% (total value) but sum assured remained low ($49k) and death claim is even worse at $39K..
What can you conclude from these figures?
Insurance agents were selling or pushing products with high commission(this explains the increase in absolute dollars) at the expense of protection for consumers.
NTU professor's finding of under insurance corroborated this trend.Averagely a family bread winner requires $500K to protect his family.
MAS agrees that insurance agents are ignoring the needs of the consumers and are only interested in the commission.
MAS should remedy the situation.
1. to make it compulsory for agents to conduct need analysis
2.agents to be responsible and liable for the recommendation
3. to remove commission and substitute it with a fairer structure like fee only
4. to comply with section 27
5. MAS to police them

Anonymous said...

Mr Tan, just to share to my support to your posting, THANKS....

Anonymous said...

My thought:

i) Isn't this the same reason why US & global recession is all about? greed and more pay. Good time have hugh bonus, bad time has large bonus.

ii) Why is MAS alway reacting? Are the Ministers looking after MAS so well paid until this scope of work is to work on feedback then come out with a report to say it is not their problem and investors are on their own?

Anonymous said...

I refer to the posting:

" Good honest people like Mr Tan need to stand up and CONTINUOUSLY raise awareness amongst Singaporeans that this sort of dishonest, unethical behavior is unacceptable and cannot continue indefinitely. "

Aiyoh. Maybe if the victims will stand up for themselves first. Then maybe good honest people will believe there is really a problem.

Based upon turnout at HL Park, I don't think we have a problem at all.

At least in Hong Kong, we know there is a real problem.

Anonymous said...

I have always hold this belief, if some of them thinks they are worth to be benchmark against the top executives/professionals renumerations, go prove yourself in the private sector first before joining the government. Only then can you hold your head high.

Anonymous said...

Dear Mr. Tan

Corruption comes in four forms
1. money corruption
2. Time corruption
3. power corruption
4. corruption in kind i.e. expensive gifts demanded in return.

I do not want to go into details for obvious reasons.

Anonymous said...

The PAP government is a bunch of selfish and money-minded people. Whatever comes out of their mouths is about money. Because their salaries are now tied to our GDP, they will try all means to maximize this, mainly from our GIC and Temasek's investments. Very sad. When will we have a leader that says, I have earned enough, it is time to truly serve Singapore for free?

Anonymous said...

I feel good when the Ms talked about helping low income group, future plans of sgp, giving out Ang Pows. And they take turns addressing various issues in concert.

Now, it just feels hollow whenever they speak and whatever they talk about.

Why are they not talking about Minibond saga?

In the beginning, the Ms said "High Risk High Return", "I understand investors concerns and MAS is working very hard" "This is a bond"

Why no Ms talking about the below?

a) No speech on MAS final report,
b) No speech on TKL last saturday petition
c) No sppech on the 200+ last saturday gathering

Nothing. Pratically, Nothing. Even if they say anything, it will means nothing as they just put a full stop after MAS "not my problem" report.

Conclusion:

When come to issues they cannot solve like, birthrate, taxi hiding, no work for middle age group, Minibond, they just sweep it under the carpet.

In the time when 10,000 heartlanders are in trouble and a confirmation of mistreatment, misled, missold by FIs shown in Hong Kong outcome and Sgp GE decision, they did not talk.

Silence means consent.
Silence means guilty.
Silence means don't care.

Sometime it feels very wierd that an entry minister earning $128,000/mth talking to a jobless middle age person with degree to go for training in order to find a job. Remember, bonus not included.

Anonymous said...

Including bonus and be conservative, TOP man earns $3.5 million a year. Population is 3.5 million singaporeans. This works out to $1 dollar per person contribution to pay 1 TOP person salary.

In USA. Assume rate is US$1=S$1.44. President salary is US$250,000 and population is 300 million people. This works out to $0.0012 contribution per person.

It gets worst if you include tax. US President paid 50% tax, Top man in Sgp paid very much less than 50%.

Conclusion: Hugely Overpaid and cannot deliver.

For Minibond, no solution from millionairs and again and again, it has been proven the heartlanders are the victims.

Anonymous said...

Every facet of life is controlled by MM Lee. Would the petition to his son of any use with the father hovering over him. We are very concerned that would legal action against the FIs be wise, are our Courts and the judges indepentent of the Govt in their judgement?
It's very sad and pathetic for the investors.Even CASE who is supposed to protect Consumers and investors are dead silent, in camparison with their Hongkong counterparts.

Anonymous said...

Our top leaders always tell people that they are as worthy as any professionals in terms of earning, hence they have to be paid equally as other top earners if not higher. That is why our top leaders are paid higher than any other supper power leaders.
But, our top leaders always don't want to mention what benefits they got after retirement, that other top-earning professionals could not get, namely,
1.millions of dollars paid for their retirements.
2.appoint them as govt-linked companies as directors and drawing millions of dollars a year.
Who can get this kind of benefits after retirement? Other top-earning professionals? or leaders of world supper power?
The answer:not even one in the whole world.

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