How to eradicate poverty in Singapore

Singapore is an affluent country. Based on GDP per capita, she is one of the richest countries in the world.

Hence logically, one would expect all her citizens to live comfortably, well above the poverty line (wherever that might be since it has never been officially defined). Yet ironically, there is a small group of Singaporeans who are living in “poverty”. With the country’s vast wealth, both in terms of revenue and savings, it should not be a financial issue to bring this group out of poverty. Further, the government has implemented the “minimum sum” and “CPF Life” schemes which are designed to ensure her citizens would have sufficient savings to spend on necessities during retirement. So it is not as though the government is not aware of the amount required for sustainable living at the minimum level for life. So, if it is not a financial problem to bring people out of poverty, then what could be the problem?

Ideology. In Singapore, welfarism is seen as a “dirty” word. Instead of encouraging the rich to help the poor, she encourages everyone to make their own living. This ideology is fine when everyone is able and there are sufficient jobs. But when some are less able and the job market is challenging, it can lead to a state of “us and them” and "everyone for himself (or herself)". With such an ideology, Singapore indeed has one of largest income gap in the world. In the present economic structure, the rich also tend to get richer while the poor get poorer. So, is there an ideology that is more friendly to the poor so that they can live a dignified life?
We are all one.  The power of this ideology leads us to feel for others - "we are not separate" and “your pain is my pain”.  To implement this ideology in the practical world, we may have an inverse relationship between the salary of senior political and administrative leaders and the number of people living in poverty. With such an arrangement, it is then to the interest of the leaders to ensure that poverty is erased. Yes, with the “right”  ideology and practical approach, poverty can literally disappear from the islands of Singapore overnight!

Dr. Tommy Wong
Author of book series "Wisdom on How to Live Life"

The book series can be ordered here.

Negative impact of National Service on our male citizens

For 25 years, I have held the view that National Service has a heavy burden on the future of your young men. More people are now sharing the same view. Read this article and the comments:
http://therealsingapore.com/content/gilbert-goh-why-locals-girls-do-not-want-our-singaporean-men

Excessive concern about privacy and security

Our banks and security firms adopts a ridiculous approach towards internet security. I suspect that the measures are directed by MAS.

I applied to receive e-statements of contract notes. They are sent to me with password protection. I do not know the password that were used. I could not open the statements for many months.

This morning, I went to SGX website, login to my CDP account, and searched all over the place to set my own password. I could not find it.

Maybe, the passwords are set by my securities firm. Anyway, it is confusing and troublesome. I never asked for this security. I do not consider it as important anyway.

The statements are received by e-mail, which require me to access with a password anyway.

I also have trouble with the quarterly change of passwords that is mandated in my login trading account, and the funny combinations of password.

I hope that MAS will stop directing the banks and security firms to implement impractical security arrangements. If they have to, they should adopt sensible (and not ridiculous) arrangements.

Evaluation of Insurance Products

I have created this website to evaluate the life insurance products that are marketed in Singapore. 
I will be putting up the benefit illustration for these products and give my evaluation of the product.
They will be rated as "Recommended", "Neutral" or "Avoid".

I will be building up the products over the next few weeks. 

If you have a specific product, you can search for it under the "Latest" tag (which also serves as a Search tag).
If you wish to find a better way to invest your savings, you can contact one of the financial advisers listed in the website. Be ready to pay a modest consulting fee, so that they can make a living by advising you on the most suitable products.

The website is called "Evaluation of Insurance Products" and can be accessed at http://c-onyx.com/eip

Wasteful practice in renewal tenancy of stalls in food court

Six months ago, the operator of the food court in Midview City told me that he is not continuing the lease, as the rental is going up by a large percentage. A few of the stalls could not survive and had moved out.
I just learned that the successful stalls are also moving out this week. They were uncertain about the terms of the renewal of their stalls and had signed up at other places to continue their business.

The management office had decided to operate the food court directly (most probably because they could not get another operator) and had offered to renew the tenancy for the existing stalls at the last minute (but they had already signed up elsewhere).

It is very wasteful for the existing stalls (which were doing well here) to move out and set up business elsewhere, and for the management office to look for new stalls to come in.
This is a consequence of the practice that is quite common in Singapore, where there is uncertainty of tenure and the prospect that rentals will continue to be pushed up, beyond an affordable limit. And in the process, there is so much wastage.

Singapore has many wasteful practices!

Reduce the competition in schools

Hong Kong implemented reforms to its education system 10 years ago - less examinations, wider choice of subjects, more creativity. The competition and stress levels remained high.

The reason? They still focus on grades to win entry to university places that cater for 18% of each cohort.  Parents continue to give private tuition to their children to score marks in the new examination format.

I have pointed out consistently in the past - if you do not address the root of the problem, you will continue to suffer the same problems.

If you continue to pay graduates much higher than non-graduates, you will encourage students and parents to compete for the rewards.

My solution is to reduce the salary gap between graduates and on-graduates. We have to pay adequate wages to manual and service workers, so that it is worth and dignified for people to work in these occupations.

This requires a minimum wage for each occupation. It can be market based, but should be adequate for the worker to raise a family.

The current system exploits workers who are weak or not well educated. If we remove the exploitation, the market can work better. If the wages are adequate for manual and service jobs, there is no need to rely on foreign workers. Locals will be happy to take up these jobs.

We have created a problem for ourselves by refusing to recognize the realities, and by relying on market forces (which could be exploitation).

Study trip to review the European model of conscription

Joseph Kheng-Liang Tan asked:
Do you think the trip to study European conscription models is just a 'wayang' or will they actually adopt some best practices?

REPLY
I was not aware previously about this trip to study the European conscription model.

It is certainly an encouraging development. It means that the Government has finalized recognized the need to review our approach towards compulsory National Service. They also probably recognized the serious damage that NS has caused to the country - which is a topic that I had raised for the past 25 years.

The compulsory NS had placed our males at a serious disadvantage and delay their entry into the workforce for 3 years. It delayed their marriage and is a major cause of the big drop in our birth rate (apart from other factors, like the modern city lifestyle).

In recent years, the problem has been magnified by the entry of foreigners into the workforce, competing with our locals.

I expect, after the trip, that the Government will recognize the need to reduce the NS burden on our males. But, knowing the Government, they will probably implement the change over 3 to 5 years, instead of immediate implementation, and they will find some "less than honest" way of presenting the message.

If they present the message in an honest way and admit their past mistakes, it would be to their big credit, and they can start to rebuild the trust of the people.

Let us wish for the best.

Internal control on purchases

THIS LETTER IS NOT PUBLISHED BY THE STRAITS TIMES

Editor
Forum Page

Straits Times

I was surprised to read that a senior government official had been charged for submitting false claims for purchase of gifts to be given to foreign dignitaries over several years. 

I do not wish to comment on this specific case, as it is being handled in the court. However, I like to ask about the internal control system that is used in government agencies.

The basic principle of internal control is that each transaction should involve at least two people, to act as a check against abuse. The purchase has to be initiated by one staff and approved by the supervisor. It is possible for these two people to collude, but the risk is minimized.

I have dealt with government agencies over the years, and they are very meticulous about following SOP, even to the extent of giving some hassle to suppliers.

It is therefore very surprising that a basic principle of internal control is being overlooked to such an extent. I look forward to a reply from the Auditor General's Office.

Do we have adequate resources for investigative work?

THIS LETTER IS NOT PUBLISHED BY STRAITS TIMES

12 October 2013

Editor
Forum Page

Straits Times

I wish to thank Superintendent Ho Yenn Dar of the Singapore Police Force for giving me a reply and assurance that the Police will commence investigation when there is evidence that a criminal offence has been committed.

I like to ask if the Police has sufficient investigators to handle the alleged criminal cases that were lodged and if these investigators had the skill, experience and inclination to carry out investigative work?

In November 2011, I was involved in filing a complaint with another person on an alleged cheating case involving a company that provided forex training courses at a high fee. The complaint was accompanied by several hundred pages of documents of alleged deception of the trainees over a period of several years. 

After a delay of a few months, the investigator replied that they did not find any evidence ofcheating.to merit investigation. During this period, both of the complainants were not invited to meet the investigator to clarify the evidence that were presented. We had contacted the investigator a few times, and were told that the requested meeting was not required.

I am now helping a group of complainants on another case. The complainants alleged that they had been cheated in an investment scam and had filed a complaint with the Commercial Affairs Department. The filed complaints from ten people contained several instances of alleged cheating as described in section 415 of the Penal Code of Singapore.

I have asked the investigator to interview the complainants and also offered my assistance in reviewing the evidence, as I am familiar with this matter. I await to see the action that will be taken by the investigator and look forward to a more positive and inclusive outcome to this complaint.

Unsatisfactory compensation from Sing Tel

THIS LETTER IS NOT PUBLISHED BY THE STRAITS TIMES

15 October 2013

Editor, Forum Page

Straits Times

I find the compensation offered by Sing Tel to its customers affected by the disruption of service caused by the fire at its Bukit Panjang exchange facility to be deplorable.

At the minimum, the affected customers should be given a proportionate refund of the fee for the period that the service has been disrupted or for the contract period to be extended by the same period.

It could be argued that the compensation should be augmented, as the disruption to business or the daily living routine should also be considered. 

It is likely that many customers will not be adequately compensated by the increase in surfing speed or more local calls which they may not need. 

The regulatory authority is supposed to regulate the service providers to make sure that they meet the service standards. I ask the authority to step in and ensure that the customers are compensate adequately and fairly.

Be careful about low cash values

A bank marketed a life insurance policy where the consumer has to pay $10,000 annual premium for 5 years, making a total payment of $50,000.
At the end of 10 years, the policy pays between $55,000 to $61,000 (not guaranteed) giving a yield of about 2% p.a.
The surrender value before maturity is less than $35,000 (as against $50,000 in premium paid) and this is not highlighted to the unwary consumer - although it is shown in the benefit illustration.
A consumer said that the product was sold to her as a saving plan, and she was not told that this is a life insurance policy. There is suspected mis-selling.

When I showed this policy to an independent financial adviser, his comments are:
1. This is a rip off product
2. How can MAS allow the insurer to sell such a product? How does it pass the compliance test of being fair to consumers?

Talk on Puzzles

This is a 90 min workshop. Mr. Tan Kin Lian will explain the use of the following mementos:

a) Shape Quiz
b) Tangram Quiz
c) Amazing Numbers

The fee for the talk is $10 but each participant will get 10 sets of the mememto worth $20. They can buy additional paks at $1 each (usual price is $2). This special price is available only on the day of the talk.

Teachers can use these puzzles to teach creating thinking and problem solving to their pupils.

Register here:
http://c-onyx.com/page/1046

Asking workshop to do a third party claim

Be careful about signing a letter of authorization to ask a workshop to handle a 3rd party claim. Read http://c-onyx.com/page/1146

Parents, help your children to make the right start in financial planning

I wish to give this important message to parents. The little things that you do, can mean a lot to the future of your children.

They are now studying hard, to get good results for their university examinations, to look for a job. After they land a job, they will work hard (day and night) to do it well, aiming to get a promotion and an increase in salary.

A part part of their hard work is likely to be wasted. Why? Whatever they earn, whatever they save, is likely to be taken away from them, due to a bad financial decision. This happened to 30,000 people every year. 

They are going to buy a bad life insurance policy, most likely an investment linked policy, that will take away 40% of their savings. 

And you, the parent, should take a large part of the blame. Why? You did not give them good advice. 

Here is what you can do. Buy the two books written by Tan Kin Lian and give it to them as a gift. The titles are "Practical Guide on Financial Planning" and "Get Value for your Life Insurance". Each book cost only $12. 

They can save $100,000 for your child, if they read them and avoid buying the bad life insurance policies. 

Order here: http://c-opal.com/promo/3

Make it easy to use Wireless@SG

Printed in the Straits Times Forum, 7 Oct 2013

THE Infocomm Development Authority of Singapore (IDA) has said that there is no more government funding for the Wireless@SG hot spot network ("Wireless hot spot deployment: IDA replies"; last Friday).

I am surprised that this service, which is useful to students and low-income people, is not funded by the Government. The cost of this service should be quite modest compared to the many expensive projects that are undertaken by IDA.

During the earlier phase of the project, the sign-in process was handled by several operators using their own interfaces. This caused a big problem for people who had to log in to the hot spots provided by other operators.

In the next phase, it is better for IDA to find an operator to manage a common sign-in service that can be used seamlessly across different types of devices.

The proposed sign-in process using SIM-based authentication, which is expected to be launched next April, is useful for devices with SIM cards, but may not work with other mobile devices.

It is better to find a simple and effective system that can work across all devices, especially one that can be implemented quickly and with less expense and technical risk.

Tan Kin Lian

 

Improve efficiency and reduce cost of living in Singapore

There are many aspects of Singapore that lead to inefficiency and high cost. I share some of them below:

a) Private tuition. The flaw in our education system make it necessary for parents to engage private tutors for their children. The manpower used in private tutors, and the need to travel to receive or get private tuition on a one-on-one basis, must lead to more resources being put in the education system.

b) Government online services. By saving an hour of the time of the civil servants, the badly designed processes caused the public to send several hours to online processes, including the login and searching for the online form. The total cost to the economy is several times of the attempted savings.

The inefficiency has resulted in high cost of doing business and the high cost of living.

If the problems are not recognized, the situation will continue to get worse. It has already reached a very bad state.

I want Singapore to be better, and will continue to point out the problems that should be recognized and rectified to improve the situation.

Presenting both sides of the story

Lim Wee asked:
Do you subscribe Strait Times? Don't you think it is a one -sided newspaper?

REPLY
Many people say that the Straits Times is parroting the views of the Government. 
Let me give you an independent view. 
35 years ago, a retired Englishman was a guest in home home. After two weeks, he said, that the Times is rubbish. I asked him why he thought so. 
His reply, "They only give one sided view, and always repeating what the Minister had said. In England, the papers will present the views from both sides, and let people make their judgement. How can people decide, if they only read the views from one side?"

Handling their job well

William Sam asked:
Which current minister is the worst performing one in your view? Which opposition MP has the ability to do a better job than that minister?

REPLY:
The best performing minister is Khaw Boon Wan. He is tacking the housing problem effectively by increasing the supply of HDB flats and also making it affordable through higher grants from the Government.

The worst performing minister is the one in charge of Home Affairs. He is not addressing the problem of rising crime rates and scams. This is the primary duty of the Police.

Many MPs, PAP or opposition, can do the job of a minister. It does not require a super talent. It only needs someone who is in touch with the problem and use common sense to solve it. Look at the example of the Governor of Jakarta, which is reported here:
http://c-onyx.com/page/991

Update law on copyright

SPH sued Yahoo for publishing over 200 articles that it deemed to have infringe its copyright. I find it odd that a newspaper article, which is widely published and read should be the subject of copyright.
The unclarity of copyright will impede the free flow of information, which is necessary for a thinking society. Our Parliament has a duty to discuss and address this issue and update the laws.

Private tuition for students

A few letters were published in the Straits Times on the need for tuition. Some parents said that they were compelled to give tuition because of the high demands of the education system. Another writer said that it is the decision of the parent and not the system.

There are two issues underlying this debate:

1. Is the standard of the syllabus set too high for each grade, that many students find it difficult to cope?
2. Do parents arrange tuition for their children to pass the subject or to achieve the top grade?

The standard is probably set too high. I remember that a topic that I learned in secondary one 50 years ago was covered in primary 4 about 20 years ago. I wonder if it is now covered in primary 3?

The high demand do not seem to produce better quality students. I find an unwillingness to think or to solve puzzles, even among people who did well in the examinations.

Many parents probably arrange tuition for their children to achieve top grade. This is not necessary.

To change the mindset. we have to make a drastic change to the system. I would consider the following:

1. In the report cards, show only if the student had passed or failed in each subject (and not not aim to show a more detailed grade).
2. The student will be informed of the detailed grade, but it will not appear in the official record.

This will allow the student to identify which are their strong and weak subjects, and make the effort to achieve a pass, without putting in undue stress to achieve the top grade.