On arrival at Colombo Airport, I bought a pre-paid data card for my iPad. It was a great decision. I was able to use Google Maps during my visit to Kandy and also around Colombo. Google Map tells me where I am at any time (using GPS) and allows me to look at the buildings and roads nearby. I was also able to use Internet connection at any place. Steve Jobs had done a great service to mankind in developing the iPhone and iPad and the Maps from Google are also great!
Sunday, November 20, 2011
Selling agents
Contributed by Anthony Hobrow
I had an unsolicited telephone call on my mobile from an Indian outfit purporting to represent HSBC, offering me a loan and/or overdraft facility on great terms. Terms that got instantly much better when I said ”no”! I refused to give my details until I had checked these people out with the bank itself. So I emailed my bank and asked if they were genuine agents; I did this in my interests and in the interests of the bank.
The emailed response I got, 3 days later, was “All banks in general engaged 3rd parties to cross sell their credit products. HSBC does so as well. However I am not sure if Efusion Solutions is one of them, as these are arrangement set up by other departments. “
A wholly disgraceful response. (Nb It subsequently turns out that Efusion is a genuine agent).
Always check out unsolicited calls before revealing any personal details.
Anthony Hobrow
Direct Asia
I had an unsolicited telephone call on my mobile from an Indian outfit purporting to represent HSBC, offering me a loan and/or overdraft facility on great terms. Terms that got instantly much better when I said ”no”! I refused to give my details until I had checked these people out with the bank itself. So I emailed my bank and asked if they were genuine agents; I did this in my interests and in the interests of the bank.
The emailed response I got, 3 days later, was “All banks in general engaged 3rd parties to cross sell their credit products. HSBC does so as well. However I am not sure if Efusion Solutions is one of them, as these are arrangement set up by other departments. “
A wholly disgraceful response. (Nb It subsequently turns out that Efusion is a genuine agent).
Always check out unsolicited calls before revealing any personal details.
Anthony Hobrow
Direct Asia
Logic Challenge
How good is your logic? Try these puzzles: http://tankinlian.com/admin/file.aspx?id=379
More of these puzzles can be found here: http://projects.easyapps.sg/iShop/public/common/File.aspx?file=45
You can buy the book at www.tankinlian.com/ishop
More of these puzzles can be found here: http://projects.easyapps.sg/iShop/public/common/File.aspx?file=45
You can buy the book at www.tankinlian.com/ishop
Manage your personal risks
Dear Mr.Tan,
I would like to seek your professional advice on getting the coverage. What happen is because my company's insurance has a maximum claim of only $3000.
As this is too little coverage, I thought of getting additional coverage myself. Please advise what is adequate and which is the cheapest plan.
REPLY
How old are you?
How much are you earning now?
Are you in good health?
You should attend this workshop and learn how to manage your personal riskMedical insurance is just one of the risk. There are more important risk for you to take care of.
Saturday, November 19, 2011
Cinnamon Lakeside Hotel, Colombo
I tried Kiri Bath, which is rice baked with coconut. It was delicious.
I had to connect three devices to the wifi network of the hotel. The I.T. staff came to my room to allow the multi-access. He was knowledgeable and got all of them working soon. He also told me what the issue was and how he solved them.He logged into his server to allow access to the 3 devices.
Make better use of natural resources
During the past two decades, we have been over-consuming our natural resources. We extract the mineral resources at low prices and used the low wages in developing economies of Asia to manufacture products at low prices. The prices are so low that it is better to buy and throw away, rather than repair them, when they become faulty. We neglect to count the cost of disposal, and dispose products in a manner that damages the environment.
The days of low prices is probably over. We now see ballooning prices for mineral oil, gold, silver and other commodities. Food prices are escalating. Wages are also escalating in many countries are also moving up. The flood in Thailand, tsunami in Japan and other natural disasters are reducing supply and jacking up costs.
The days of cheap manufactured products are over. We have to get used to more expensive products and have to use them more carefully. We have to change our wasteful habits. This education process has to start with our young people, as they are brought up in a wasteful environment.
The days of low prices is probably over. We now see ballooning prices for mineral oil, gold, silver and other commodities. Food prices are escalating. Wages are also escalating in many countries are also moving up. The flood in Thailand, tsunami in Japan and other natural disasters are reducing supply and jacking up costs.
The days of cheap manufactured products are over. We have to get used to more expensive products and have to use them more carefully. We have to change our wasteful habits. This education process has to start with our young people, as they are brought up in a wasteful environment.
Make your own flexible annuity
This article explains that you can get a higher annuity when you buy it at a time when interest rate is high. But, the problem is that you do not know whether interest rate will go higher or will fall. So, you may be waiting for a long time.
http://money.cnn.com/2011/11/17/pf/expert/annuity/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
A better way is to have a flexible annuity that you build on your own. This is explained in my Financial Planning workshop that is held on 26 November 2011.
http://easyapps.sg/assn/Org/Event.aspx?id=5
http://money.cnn.com/2011/11/17/pf/expert/annuity/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
A better way is to have a flexible annuity that you build on your own. This is explained in my Financial Planning workshop that is held on 26 November 2011.
http://easyapps.sg/assn/Org/Event.aspx?id=5
Friday, November 18, 2011
Colombo, Sri Lanka
I will be in Colombo, Sri Lanka for the next five days to attend a conference and also to take a holiday. I am staying at the Cinnamon Lakeside Hotel. The staff are polite and helpful. This is the best service that I have experience in my years of travelling.
Tips on life insurance coverage
A young man asked me, "How much life insurance do I need and what type of policy to buy?" The answer can be found here: http://tankinlian.com/admin/file.aspx?id=589
The world’s local bank... but I wish it wasn’t!
Contributed by Anthony Hobrow
I am trying to get my partner a joint bank account with me and a credit card. This will take two weeks the bank says. BUT worse is that the bank regards this as a new relationship requiring another minimum holding of S$200,000. This is for a customer who has been loyal to this bank for 43 years!! So if I complied I would have S$400,000 on deposit with this bank, earning almost zero interest. Luckily I had my London branch manager fix it for me and I have not had to do the deposits. I am not sure it is good that this bank is the world’s local bank – it seems to me they are hugely better in London than here in Singapore. Ten days on and I still don’t have the new cards or accounts!!
They even told me I couldn’t change my relationship manager unless I started a new account. Believe me, we have no relationship and a fresh start with someone new is in the interests of both me and the bank!
Anthony Hobrow
Direct Asia
I am trying to get my partner a joint bank account with me and a credit card. This will take two weeks the bank says. BUT worse is that the bank regards this as a new relationship requiring another minimum holding of S$200,000. This is for a customer who has been loyal to this bank for 43 years!! So if I complied I would have S$400,000 on deposit with this bank, earning almost zero interest. Luckily I had my London branch manager fix it for me and I have not had to do the deposits. I am not sure it is good that this bank is the world’s local bank – it seems to me they are hugely better in London than here in Singapore. Ten days on and I still don’t have the new cards or accounts!!
They even told me I couldn’t change my relationship manager unless I started a new account. Believe me, we have no relationship and a fresh start with someone new is in the interests of both me and the bank!
Anthony Hobrow
Direct Asia
How to buy Term Insurance
Enquiry:
Hi Mr. Tan, I am so happy to find your blog where provides me some good advises for buying insurance. I know that you suggest people to buy "term" and invest " ETF". I agree with your points to do so. However I found it is not easy to find " guaranteed renewal term" policies. Can you please advise.
REPLY
Read this FAQ
Hi Mr. Tan, I am so happy to find your blog where provides me some good advises for buying insurance. I know that you suggest people to buy "term" and invest " ETF". I agree with your points to do so. However I found it is not easy to find " guaranteed renewal term" policies. Can you please advise.
REPLY
Read this FAQ
Thursday, November 17, 2011
Cheating - as defined in the Penal Code of Singapore
Cheating – Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he or she would not do or omit if he or she were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat".For example, A cheats if he intentionally deceives Z into a belief that A means to repay any money that Z may lend to him when A does not intend to repay it, and thereby dishonestly induces Z to lend him money.Cheating is punished with imprisonment of up to one year, or a fine, or both.Cheating is a crime and action has to be taken by the state, i.e. it is not a civil matter. If a person deceives another person and receives money from the victim, the person is committing the crime of "cheating".
If a forex trainer claims that his technique is guaranteed to make money, and the representations are false, the trainer is deceiving the students and can be charged for the crime of "cheating" them of the fees that are being paid.
Effect of Deduction
Hi Mr Tan.
I am signing a policy soon. But I don't understand what the effect of deduction is. It's a AXA policy called INSPIRE FLEXI 2. After reading your blog, I tried to do the calculation but am more puzzled. Attached are the 3 pages of the illustrations. I hope that you can advise me.
REPLY
The Effect of Deduction is the amount taken away from your future savings. You can see that this is a large amount. Why are you investing in a life insurance policy when so much is being taken away?
It is better for you to invest on your own, e.g. in the STI ETF, as advised in my book. You can buy term insurance for your life insurance protection. Please read my books for a better understanding on this matter. www.tankinlian.com/ishop
You can also attend the FISCA talk on 26 Nov 2011 - register here: http://easyapps.sg/assn/Org/Event.aspx?id=5
In the meantime, you should not take up the life insurance policy, especially as you do not understand these important matters.
I am signing a policy soon. But I don't understand what the effect of deduction is. It's a AXA policy called INSPIRE FLEXI 2. After reading your blog, I tried to do the calculation but am more puzzled. Attached are the 3 pages of the illustrations. I hope that you can advise me.
REPLY
The Effect of Deduction is the amount taken away from your future savings. You can see that this is a large amount. Why are you investing in a life insurance policy when so much is being taken away?
It is better for you to invest on your own, e.g. in the STI ETF, as advised in my book. You can buy term insurance for your life insurance protection. Please read my books for a better understanding on this matter. www.tankinlian.com/ishop
You can also attend the FISCA talk on 26 Nov 2011 - register here: http://easyapps.sg/assn/Org/Event.aspx?id=5
In the meantime, you should not take up the life insurance policy, especially as you do not understand these important matters.
Ask Mr. Tan
I have received question from readers of my blog on life insurance and financial planning. I usually ask them to read my books which are available from www.tankinlian.com/ishop. Often, the answers can be found in these books. In the future, I will ask them to make a donation of $200 to FISCA, before I look into their question.
Higher business costs
I met the owner of a chain of coffee shops. He told me that his business is being squeezed by higher rentals and shortage of manpower. His employees keep resigning, as they can get better wages elsewhere, after the government clamped down on the work passes. He feels the pressure of squeezed margins.
I said that to look at this matter in a different perspective. The higher rentals and wages apply to all of his competitors, and does not hit him alone. So, the higher costs will have to be translated into higher retail prices for his products. As long as he is more efficient that his competitors - and he is selling this coffee and breakfast at lower prices - he will be able to do well. People will still need breakfast and coffee, so they will continue to patronize his outlets, even after he has adjusted his prices to cope with the higher costs.
Higher prices are bad for the consumers - but this has to be solved at the government level - to moderate the rentals for business outlets. It is good for wages to be adjusted upwards, as the workers need to earn enough to feed their family.
I welcome the move by the government to build more markets at HDB estates - and hope that these outlets will be rented at non-tender prices. If they are at moderate levels, it will help to moderate the rentals in the private sector as well.
I said that to look at this matter in a different perspective. The higher rentals and wages apply to all of his competitors, and does not hit him alone. So, the higher costs will have to be translated into higher retail prices for his products. As long as he is more efficient that his competitors - and he is selling this coffee and breakfast at lower prices - he will be able to do well. People will still need breakfast and coffee, so they will continue to patronize his outlets, even after he has adjusted his prices to cope with the higher costs.
Higher prices are bad for the consumers - but this has to be solved at the government level - to moderate the rentals for business outlets. It is good for wages to be adjusted upwards, as the workers need to earn enough to feed their family.
I welcome the move by the government to build more markets at HDB estates - and hope that these outlets will be rented at non-tender prices. If they are at moderate levels, it will help to moderate the rentals in the private sector as well.
Flexible Pensions
The state pension systems adopted in many advanced countries are now in deficit, due to ballooning cost and under-funding. This does not mean that the pension system is inferior to the provident fund system (such as the Central Provident Fund operated in Singapore). The provident fund system also has its pitfalls.
The key weakness of the pension system is its rigidity. It aims to pay the pension in predetermined amounts when asset values and economic conditions can fluctuate significantly. A better solution, which has not been tried, is to have flexible pensions, i.e. the amounts will be changed according to the underlying value of the assets. This type of flexible values are already embodied in mutual fund investments and can be applied to make pension payments flexible and keep the system solvent over the long term.
There are two key advantages in the pension system. First, it provides for pooling of investments over the long term, by professional fund managers. This is much better than allowing the retirees to take out their provident fund savings to invest on their own - as most lay people cannot manage their own investments.
The second benefit is the pooling of longevity risks. Those who die younger draw out less, and allows the pension fund to pay the pensions to those who live longer.
The fear about insolvent pension schemes can be addressed by building in the flexibility to the pension payments. In good economic times, the pensions can be bigger. In bad times, they can be smaller. The pensioner can cope with fluctuating pension amounts (provided that the adjustments are modest and made every six months). When they receive a smaller payment during an economic downturn, the cost of living will probably be lower - so the smaller pension payments may still be adequate.
It is time for Singapore to convert CPF Life into a flexible pension scheme and to make it attractive for retirees to invest their savings (other than the CPF minimum sum) in a sound pension scheme.
The key weakness of the pension system is its rigidity. It aims to pay the pension in predetermined amounts when asset values and economic conditions can fluctuate significantly. A better solution, which has not been tried, is to have flexible pensions, i.e. the amounts will be changed according to the underlying value of the assets. This type of flexible values are already embodied in mutual fund investments and can be applied to make pension payments flexible and keep the system solvent over the long term.
There are two key advantages in the pension system. First, it provides for pooling of investments over the long term, by professional fund managers. This is much better than allowing the retirees to take out their provident fund savings to invest on their own - as most lay people cannot manage their own investments.
The second benefit is the pooling of longevity risks. Those who die younger draw out less, and allows the pension fund to pay the pensions to those who live longer.
The fear about insolvent pension schemes can be addressed by building in the flexibility to the pension payments. In good economic times, the pensions can be bigger. In bad times, they can be smaller. The pensioner can cope with fluctuating pension amounts (provided that the adjustments are modest and made every six months). When they receive a smaller payment during an economic downturn, the cost of living will probably be lower - so the smaller pension payments may still be adequate.
It is time for Singapore to convert CPF Life into a flexible pension scheme and to make it attractive for retirees to invest their savings (other than the CPF minimum sum) in a sound pension scheme.
Wednesday, November 16, 2011
FISCA Financial Planning Workshop - 26 Nov 2011
The next FISCA financial planning workshop is available for registration now at http://easyapps.sg/assn/Org/Event.aspx?id=5
The last workshop was well received. Here are two feedbacks:
The last workshop was well received. Here are two feedbacks:
Ong: I think the seminar is very relevant especially for young people who have recently joined the job market. It can really help make good investment decisions and avoid pitfalls that could ruin people's lives. The talks on Financial Planning today were both interesting and enlightening. Mr Tan Kin Lian's delivery is frank and very helpful, especially in understanding financial planning and insurance policies. Kindly keep me inform of his future talks.
Najmi: Thank you for such an informative session earlier. I thoroughly enjoyed it and learnt a lot from you and Mr Ling today.One participant sent an e-mail to all his friends to recommend that they attend the workshop.
Rates of GST
Here are the current rates of GST adopted in various countries:
Australia 10%
Canada 5%
Hong Kong (abandoned)
India (to be introduced in 2012, rate not decided)
New Zealand 15%
Singapore 7%
Germany 19%
Japan 7%
Sweden 25%
UK 20%
I am not able to draw any conclusion on this matter. I dislike GST and prefer the government revenue to come from income tax. But, it seemed that many countries are implementing GST.
My view: In Singapore's case, there is no need to have GST as the government collects a lot of revenue on sale of land and vehicle tax. Furthermore, welfare benefits in Singapore is quite low. We are in a similar situation as Hong Kong, which does not have GST.
Australia 10%
Canada 5%
Hong Kong (abandoned)
India (to be introduced in 2012, rate not decided)
New Zealand 15%
Singapore 7%
Germany 19%
Japan 7%
Sweden 25%
UK 20%
I am not able to draw any conclusion on this matter. I dislike GST and prefer the government revenue to come from income tax. But, it seemed that many countries are implementing GST.
My view: In Singapore's case, there is no need to have GST as the government collects a lot of revenue on sale of land and vehicle tax. Furthermore, welfare benefits in Singapore is quite low. We are in a similar situation as Hong Kong, which does not have GST.
Inefficient and bureaucratic bank process
Contributed by Anthony Hobrow
Banking in Singapore leaves me frustrated at every turn. I am not sure how much is the fault of the bank and how much is detailed regulation by MAS but the end result is a system where there appears to be no authority granted to the front line, excessive paperwork and very long process times. It is not the same in London.
With the same international bank I can get an overdraft facility in one short phone call. Here it has taken paperwork and two weeks! I even had to provide copy payslips when the bank has access to every receipt and payment in my account in UK and in Singapore and has access to 40 years of my banking history!! What possible purpose can a payslip serve?
I needed a new credit card as my card failed sometimes to work when I was travelling. In UK this would have been couriered next day to wherever I was. Singapore could not send me a new card. I had to be with a faulty card until the end of my trip and then collect a new one when I got back. BUT the worst thing was they cancelled my old card and took the account off the internet banking facility, before I had the new one! The card was not lost or stolen, just worn and intermittently didn’t swipe well.
Anthony Hobrow
Direct Asia
Banking in Singapore leaves me frustrated at every turn. I am not sure how much is the fault of the bank and how much is detailed regulation by MAS but the end result is a system where there appears to be no authority granted to the front line, excessive paperwork and very long process times. It is not the same in London.
With the same international bank I can get an overdraft facility in one short phone call. Here it has taken paperwork and two weeks! I even had to provide copy payslips when the bank has access to every receipt and payment in my account in UK and in Singapore and has access to 40 years of my banking history!! What possible purpose can a payslip serve?
I needed a new credit card as my card failed sometimes to work when I was travelling. In UK this would have been couriered next day to wherever I was. Singapore could not send me a new card. I had to be with a faulty card until the end of my trip and then collect a new one when I got back. BUT the worst thing was they cancelled my old card and took the account off the internet banking facility, before I had the new one! The card was not lost or stolen, just worn and intermittently didn’t swipe well.
Anthony Hobrow
Direct Asia
Mortgage insurer in big deficit
It seems that there will be extremely difficult times ahead for the USA. The Federal Housing Agency insures the mortgages on many homes. They are facing a big deficit and need to be bailed out by the Government. Wow! http://www.cnbc.com//id/45305350
If we look at the problem of the housing market in the USA, the lesson is that property prices should not be allowed to go up too high - as it will eventually have to burst. A good benchmark in the past is that property prices should be 3 years of the average income of the main bread winner (and excludes the income of the spouse). The USA has allowed the property prices to go up under a deregulated environment - and is now suffering the pain of adjustment.
The situation in Singapore is worse, as our property prices - in relation to the average income - is worse than USA. It is now being propped up by foreign buying - but we cannot count on this source of support for a long time. (Note: Dubai was in a similar situation with its property market at a high level due to foreign funds, but it has now burst.)
If we look at the problem of the housing market in the USA, the lesson is that property prices should not be allowed to go up too high - as it will eventually have to burst. A good benchmark in the past is that property prices should be 3 years of the average income of the main bread winner (and excludes the income of the spouse). The USA has allowed the property prices to go up under a deregulated environment - and is now suffering the pain of adjustment.
The situation in Singapore is worse, as our property prices - in relation to the average income - is worse than USA. It is now being propped up by foreign buying - but we cannot count on this source of support for a long time. (Note: Dubai was in a similar situation with its property market at a high level due to foreign funds, but it has now burst.)
Bank failed to get customers to accept fees
JP Morgan Chase has to give up the trial on several bank fees, due to non-acceptance by its customers:
http://money.cnn.com/2011/11/15/pf/chase_bank_fees/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
http://money.cnn.com/2011/11/15/pf/chase_bank_fees/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Pension and provident fund
There is a difference between the operations of a pension fund and a provident fund. A pension fund promises fixed benefits to the pensioners and may face a deficit when the value of its assets fall below its obligations. This is explained here: http://www.cnbc.com//id/45307724
In a provident fund, the amount due to the members vary according to the value of the assets. If the assets earn a low yield, the interest credited can be quite small and may fall below the rate of inflation. The members have to bear the fluctuations of the market.
I am personally in favor of a provident fund system, as it is better for the risks to be spread among its members, rather than in the government. But, it is also important that the provident fund be invested efficiently to earn a market rate of return for its members, and the administration expenses, including the cost of managing the investments, be kept at a low level (which is possible due to the economy of scale).
The Central Provident Fund in Singapore started on the right track, but over the years, it has grown to be too complicated. It is time to move back to its basics.
In a provident fund, the amount due to the members vary according to the value of the assets. If the assets earn a low yield, the interest credited can be quite small and may fall below the rate of inflation. The members have to bear the fluctuations of the market.
I am personally in favor of a provident fund system, as it is better for the risks to be spread among its members, rather than in the government. But, it is also important that the provident fund be invested efficiently to earn a market rate of return for its members, and the administration expenses, including the cost of managing the investments, be kept at a low level (which is possible due to the economy of scale).
The Central Provident Fund in Singapore started on the right track, but over the years, it has grown to be too complicated. It is time to move back to its basics.
Better to have small businesses
A good economic system has many small businesses that compete in the market to offer good service at a transparent price. You can see many good examples in the retail trade, food and in hair dressing, tailoring and other personal services.
Large businesses are needed for manufacturing, but the distribution can be done through small retailers. This is the model for the sale of household and electronic products.
It should be possible for banking services to be operated by small banks who can serve the customers in the community for banking services. There is no need for each bank to develop an expensive computer system, as they can tap into a common system, similar to the arrangement where the Singapore Exchange provide a centralized service to the stockbrokers.
The argument that we need big banks to be able to afford the investment in computer system to operate efficiently is flawed. It has led to large banks increasing their profits to excessive levels, by charging high fees to customers, and also engaging in risky trading. We now have the situation of "too big to fail" when banks make big losses on their large bets - which has to happen from time to time. We need to make banks smaller, so that they can be subject to the discipline of the market. See http://www.cnbc.com//id/45307122
There is a similarity with the operations of large transport and telephone companies. There is a similar argument that they need to be large to afford the investment in the infrastructure. It is easy for these large businesses to abuse their pricing power to make big profits. A better approach is for the infrastructure to be developed and owned by the state and rented out to the service providers.
The current business model in many countries, including Singapore, favors big businesses, but it also leads to excessive profit margins for these businesses - leading to higher cost for consumers. We need to have a new economic and business model for the future.
Large businesses are needed for manufacturing, but the distribution can be done through small retailers. This is the model for the sale of household and electronic products.
It should be possible for banking services to be operated by small banks who can serve the customers in the community for banking services. There is no need for each bank to develop an expensive computer system, as they can tap into a common system, similar to the arrangement where the Singapore Exchange provide a centralized service to the stockbrokers.
The argument that we need big banks to be able to afford the investment in computer system to operate efficiently is flawed. It has led to large banks increasing their profits to excessive levels, by charging high fees to customers, and also engaging in risky trading. We now have the situation of "too big to fail" when banks make big losses on their large bets - which has to happen from time to time. We need to make banks smaller, so that they can be subject to the discipline of the market. See http://www.cnbc.com//id/45307122
There is a similarity with the operations of large transport and telephone companies. There is a similar argument that they need to be large to afford the investment in the infrastructure. It is easy for these large businesses to abuse their pricing power to make big profits. A better approach is for the infrastructure to be developed and owned by the state and rented out to the service providers.
The current business model in many countries, including Singapore, favors big businesses, but it also leads to excessive profit margins for these businesses - leading to higher cost for consumers. We need to have a new economic and business model for the future.
Scam - invest in gold bars
This is a way for the scammer to mark up the price of the gold bar by 23%, without the investor realizing it. The scammer distracts the investors by offering a complicated structure of interest payment, buy back guarantee and delivery of the physical gold bar. The investor overlooked checking the real price of gold. http://tankinlian.com/admin/file.aspx?id=186
Tuesday, November 15, 2011
Live trading account shows profit
There were a few comments about a particular forex trainer who was able to impress the audience with a live trading account that showed profit. If I want to deceive people, I can also show a live trading account that shows profit for the previous day, and I can do it on any day. How do I do this impressive show? Make a guess. It is not difficult - for people who knows how to perform magic!
Positive experience with online website
I have made online bookings with a few airlines. My best experience is with Sri Lanka Airlines. Their website is simple. I completed the online booking with little effort and quite quickly. They focused on what needed to be done, and did not distract the customer with options that are not really needed.
Simplify and make life better
I have quoted a few examples about how things are being done in Singapore that lead to a stressful life , unnecessary work and expenses. They are caused by blind adherence to rules, disregard for the trouble caused to the other party and excessive focus on security (even for small amounts or risks). I have also suggested some practical ways to simplify these processes for the benefit of the customers and the staff.
We should be ready to ask "Can we simplify the way that things can be done, to make life easier for all?" I like to ask my readers to help identify other issues and suggest how they can be simplified.
We should be ready to ask "Can we simplify the way that things can be done, to make life easier for all?" I like to ask my readers to help identify other issues and suggest how they can be simplified.
Bank fees
Banks are adding new fees and increasing existing fees to boost their profits. This is happening in America and is likely to be implemented in Singapore in the future.
http://www.cnbc.com//id/45286104
http://www.cnbc.com//id/45286104
Monday, November 14, 2011
Difficulty with booking an air ticket
I booked a ticket with JetStar. Their website is slow and buggy, so it was quite a hassle to make a booking. They offer many complicated and unnecessary choices - which are meant to give additional marketing revenue, but increased the difficulty of using the website.
After going through the hassle of selecting the itinery and the seats, I had to make payment. I painfully entered the details of my credit card (as MAS refused to allow the airline to store the credit card details) and confirmed the payment. I had next to wait to receive a verification code sent to the mobile phone. When it arrived (after some delay), I entered the verification code. There was a long wait and finally the website went blank. I clicked on another webpage and found that the payment was not processed - as the verification code had expired.
I went through the pain of making another booking. This time, it was rejected as it was a "duplicate booking". I am unable to recall the previous booking, so I deleted the original booking and make a new booking.
My third booking was rejected as a "duplicate booking". So, I am now caught in limbo and don't know what to do. I searched for the hotline of Jetstar and could not find it.
I draw this conclusion - the website designers try to put in too many options, which made the process complicated. MAS comes in to impose requirements in the name of security, but no one looks at the whole process and think about simplifying the process for the consumer.
Creating hassle
I wrote a cheque for ABC Property for $1,000. There was a mistake in the name - as it should be ABC Properties. The bank refused to bank in the cheque. They refused to call me to verify if I had intended it to be for ABC Properties. They just returned the cheque for correction. It had to be sent to the payee who has to mail it to me. And I have to mail it back.
Wow - this is Singapore! All this hassle for a relatively small sum. The bank is so rigid and so unthinking; the staff prefer to avoid responsibility and stick to the rules blindly. Do you wonder why life is so stressful and costly in Singapore? The reason is found all over the place!
Wow - this is Singapore! All this hassle for a relatively small sum. The bank is so rigid and so unthinking; the staff prefer to avoid responsibility and stick to the rules blindly. Do you wonder why life is so stressful and costly in Singapore? The reason is found all over the place!
Difficulty with Open Net
I had a lot of difficulty with Open Net. A few months ago, they sent me a letter asking to arrange for installation of Open Net in my home. I responded.
Their engineers were not able to install the line. There was some problem that involved the PUB. I do not understand what the problem was. The matter was not attended for four months.
This morning, I called the hotline of Open Net to find out the status. I made many calls over two hours. Their automated system keeps saying "all our lines are busy". Busy - the whole morning? No indication on when they are able to take my call? I wonder if they really have any staff answering the phone calls!
This type of bad service is quite common with many organisations in Singapore - government agencies and businesses. I suspect that they created so much hassle with their regulations and procedures that they staff are not able to cope with the calls for assistance.
Let me relate my experience with a telco in Cambodia. They may be less advanced in their infrastructure, but they have much better service on their call centers. When I was placed on hold, the message was ... "you are placed 5th in the queue". This keeps reducing on each announcement. I did not have to wait long to be served.
Their engineers were not able to install the line. There was some problem that involved the PUB. I do not understand what the problem was. The matter was not attended for four months.
This morning, I called the hotline of Open Net to find out the status. I made many calls over two hours. Their automated system keeps saying "all our lines are busy". Busy - the whole morning? No indication on when they are able to take my call? I wonder if they really have any staff answering the phone calls!
This type of bad service is quite common with many organisations in Singapore - government agencies and businesses. I suspect that they created so much hassle with their regulations and procedures that they staff are not able to cope with the calls for assistance.
Let me relate my experience with a telco in Cambodia. They may be less advanced in their infrastructure, but they have much better service on their call centers. When I was placed on hold, the message was ... "you are placed 5th in the queue". This keeps reducing on each announcement. I did not have to wait long to be served.
How an expatriate avoided mis-selling by his bank
Dear Mr. Tan,
Soon after I moved to Singapore I was offered an investment product from one of the world’s largest banks. It purported to guarantee me a return about four times higher than the then interest rate on deposits. I asked what the risk was and how the product worked; clearly there was risk – the bank was not going to pay me all that return for nothing. The bank representative was totally unable to explain the product or the risk and just ended up saying “well a lot of my customers bought it and they never asked me questions like you do”!! All I can say is more fool them if they bought without understanding. It was a gamble by the way on the movements between two currencies. As for the Bank..well to be mis-selling in this age of increased regulation and supposed consumer protection is indeed staggering.
Golden rules. If you don’t understand the product; don’t buy. If salespeople cannot explain a product in simple, clear language, devoid of jargon, then they don’t understand it; don’t buy. If it sounds too good to be true; don’t buy.
Anthony Hobrow
Direct Asia
Soon after I moved to Singapore I was offered an investment product from one of the world’s largest banks. It purported to guarantee me a return about four times higher than the then interest rate on deposits. I asked what the risk was and how the product worked; clearly there was risk – the bank was not going to pay me all that return for nothing. The bank representative was totally unable to explain the product or the risk and just ended up saying “well a lot of my customers bought it and they never asked me questions like you do”!! All I can say is more fool them if they bought without understanding. It was a gamble by the way on the movements between two currencies. As for the Bank..well to be mis-selling in this age of increased regulation and supposed consumer protection is indeed staggering.
Golden rules. If you don’t understand the product; don’t buy. If salespeople cannot explain a product in simple, clear language, devoid of jargon, then they don’t understand it; don’t buy. If it sounds too good to be true; don’t buy.
Anthony Hobrow
Direct Asia
Blind adherence to rules
I am worried about several negative aspects of the Singapore mindset. One is the blind adherence to rules. We follow rules blindly and are not prepared to make exceptions, even when the consequence is negligible and helps to remove stress for other people.
Recently, I have to make the final payment for the purchase of my office. I have to apply for a cashier order (i.e. the vendor's lawyer will not accept my company's cheque). I also have to visit my lawyer's office with the company stamp and with the secretary to sign the documents in front of the lawyer. Why are all these requirements necessary? The roads were congested and there were insufficient parking space in the lawyer's office - so this requirement adds to the hassle and the cost.
The lawyer's assistant checked the cashier order thoroughly and found that the amount was short by 2 cents. Sorry, the cashier order cannot be accepted. She called the lawyer for the vendor who said that the amount has to be exact. I was asked to apply for another cashier order and to make another appointment to finalise the formalities. I lost my temper.
Finally, they agreed to take my 10 cents in coin to make up the difference. This will save me the cost of another cashier order (I don't know how much I am being fleeced) and a lot of money and hassle to make another trip.
I have seen so many examples of blind adherence to rules in Singapore. I am worried for the future of our country.
Recently, I have to make the final payment for the purchase of my office. I have to apply for a cashier order (i.e. the vendor's lawyer will not accept my company's cheque). I also have to visit my lawyer's office with the company stamp and with the secretary to sign the documents in front of the lawyer. Why are all these requirements necessary? The roads were congested and there were insufficient parking space in the lawyer's office - so this requirement adds to the hassle and the cost.
The lawyer's assistant checked the cashier order thoroughly and found that the amount was short by 2 cents. Sorry, the cashier order cannot be accepted. She called the lawyer for the vendor who said that the amount has to be exact. I was asked to apply for another cashier order and to make another appointment to finalise the formalities. I lost my temper.
Finally, they agreed to take my 10 cents in coin to make up the difference. This will save me the cost of another cashier order (I don't know how much I am being fleeced) and a lot of money and hassle to make another trip.
I have seen so many examples of blind adherence to rules in Singapore. I am worried for the future of our country.
Playing with fire
Banks are supposed to do an honest business by taking money from depositors and lending them to businesses at a higher interest rate and to make profits from the spread in interest rate, less the operating expenses. To make profit, they have to work hard, provide good service to their customers, work efficiently and earn an honest profit.
But, the banks found an easier way to make super profits. During an economic slowdown, when savers are risk averse and accept negligible interest rate, the banks used the money to speculate in all types of asset classes - housing, forex and government debts. It seemed so easy to make money, especially on government debt which was considered to be "safe". They can make a good margin on lending money to the government to earn a high interest rate - better than the money lent to businesses.
But,governments can become insolvent. We now have a situation where the government of several European countries are not able to repay their debts and found it difficult to refinance their short term borrowings. This is the crisis in Greece and possibly Italy. When these governments cannot repay their debts, the European banks that bought their debts get into financial difficulty, causing a potential banking crisis.
http://financialedge.investopedia.com/financial-edge/1111/How-PIIGS-Defaults-Could-Affect-The-Markets.aspx?partner=ntu11#ixzz1dFm08zM8DISCLAIMER:
Banks should be required to go back to their traditional business of handling payments and giving loans to small businesses. They should not be speculators in asset classes, including government debts. These asset classes should be invested by mutual funds.
But, the banks found an easier way to make super profits. During an economic slowdown, when savers are risk averse and accept negligible interest rate, the banks used the money to speculate in all types of asset classes - housing, forex and government debts. It seemed so easy to make money, especially on government debt which was considered to be "safe". They can make a good margin on lending money to the government to earn a high interest rate - better than the money lent to businesses.
But,governments can become insolvent. We now have a situation where the government of several European countries are not able to repay their debts and found it difficult to refinance their short term borrowings. This is the crisis in Greece and possibly Italy. When these governments cannot repay their debts, the European banks that bought their debts get into financial difficulty, causing a potential banking crisis.
http://financialedge.investopedia.com/financial-edge/1111/How-PIIGS-Defaults-Could-Affect-The-Markets.aspx?partner=ntu11#ixzz1dFm08zM8DISCLAIMER:
Banks should be required to go back to their traditional business of handling payments and giving loans to small businesses. They should not be speculators in asset classes, including government debts. These asset classes should be invested by mutual funds.
Sunday, November 13, 2011
Bright Sudoku - qualify to be a Sudoka master
Do you qualify to be a Sudoku master? You can practice Sudoku and move up the grades, starting from white belt up to black belt (grade 7) and finally red belt (grade 8). This app available now on the Nokia platform and will soon be available on the Apple platform (iPhone & iPad). Watch this video:
http://www.youtube.com/watch?v=BHCU9YfYkCE
http://www.youtube.com/watch?v=BHCU9YfYkCE
Getting people to enrol for Forex training course
Dear Mr. Tan,
I heard from a friend who went his preview about how X (a forex trainer) slashed and reduced course price to attract people to join his course. My friend felt X was treating the audience like clowns. He mentioned X slashed the price until around $300. While everyone was running to the back to sign up, he then finish writing $300 per month, and not just $300.
I have attended other seminars before and I think it is normal, but not to the extent of not finish writing to somehow cheat people. Most people would just state their actual course fee was (example) $20k, slashed to $10k, $5k, eventually $2.5k to make people think they are having great deals (not just Forex).
Regarding the (named removed) website, I saw people complaining about him writing $X amount per month installment which added up to be more than the course fees. I believe it was 0% interest just like most schools are doing now. After searching around online for feedbacks, I felt many people are complaining about him that he is more of a motivational speaker and sales person than a trainer. I watched some videos of his and I felt too.
Hopefully people could be more caution before signing up for courses.
I heard from a friend who went his preview about how X (a forex trainer) slashed and reduced course price to attract people to join his course. My friend felt X was treating the audience like clowns. He mentioned X slashed the price until around $300. While everyone was running to the back to sign up, he then finish writing $300 per month, and not just $300.
I have attended other seminars before and I think it is normal, but not to the extent of not finish writing to somehow cheat people. Most people would just state their actual course fee was (example) $20k, slashed to $10k, $5k, eventually $2.5k to make people think they are having great deals (not just Forex).
Regarding the (named removed) website, I saw people complaining about him writing $X amount per month installment which added up to be more than the course fees. I believe it was 0% interest just like most schools are doing now. After searching around online for feedbacks, I felt many people are complaining about him that he is more of a motivational speaker and sales person than a trainer. I watched some videos of his and I felt too.
Hopefully people could be more caution before signing up for courses.
Staged accidents
A staged accident is created by a syndicate involving a criminal workshop. The workshop boss arranged for an accomplice to drive on the expressway and brake suddenly, causing the following vehicle to crash into its rear. Another accomplice will appear quickly with a tow truck to bring the accident vehicles for repair. This will be followed by a big repair bill for the vehicle in front (which belonged to the syndicate).
This type of staged accidents had been happening for many years, but nobody bothered to take any action. One day, the driver of the following vehicle was the son or a prominent politician. He related the matter to his father who brought up the matter to the authority. This caused the authority to take action. For the next few days, there were big stories in the media and the term "staged accidents" was coined. There was a furor, because this was considered to be reckless driving.
This happened in a certain country about 10 years ago. Guess the name of this country, where nobody takes action until it involves an important person's family member?
This type of staged accidents had been happening for many years, but nobody bothered to take any action. One day, the driver of the following vehicle was the son or a prominent politician. He related the matter to his father who brought up the matter to the authority. This caused the authority to take action. For the next few days, there were big stories in the media and the term "staged accidents" was coined. There was a furor, because this was considered to be reckless driving.
This happened in a certain country about 10 years ago. Guess the name of this country, where nobody takes action until it involves an important person's family member?
Re-admission to Universal Studio
The rules of Universal Studio Singapore said that "for same day admission, you must present the Studio admission ticket and hand stamp for re-entry".
I recall visiting the theme parks in America where they recognize the hand stamp (or similar tags). They do not require the admission ticket to be shown as well. I wonder if this reflects the peculiar requirements in Singapore - where it is usual to add to the hassle for customers?
I recall visiting the theme parks in America where they recognize the hand stamp (or similar tags). They do not require the admission ticket to be shown as well. I wonder if this reflects the peculiar requirements in Singapore - where it is usual to add to the hassle for customers?
Saturday, November 12, 2011
Benchmark for housing prices
An American told me that 30 years ago, the banks will give a mortgage to the borrower to buy a house for not more 3 years of the income of the breadwinner (and the income of the working spouse is disregarded). The bank also required the borrower to make a down-payment of 10% for the house.
If this rule is applied in Singapore today, the average price of a 4 room HDB flat should be $120,000 (assuming an average income of the breadwinner to be $40,000).
The price of HDB flat that is being charged is about 3 times of this benchmark - and a 4 room HDB flat is considered to be quite modest, compared to a typical house with a land in America. (See http://en.wikipedia.org/wiki/Public_housing_in_Singapore)
This shows how costly are HDB flats in Singapore - and they are considered as "public housing". No wonder, both parents have to work and they still do not have enough money for retirement. The housing is far too expensive.
HDB flats are getting smaller and more expensive
This is an interesting perspective told by Lucky Tan
http://singaporemind.blogspot.com/2011/11/smaller-flats-doesnt-mean-lower-quality.html
http://singaporemind.blogspot.com/2011/11/smaller-flats-doesnt-mean-lower-quality.html
MF Global Singapore clients
Mr Tan,
Your reader might be interested in this news.
SK
My views
It is better for Singapore investors to keep their accounts with local brokerages, rather than foreign brokerages, due to this type of problem. The local brokerages are more likely to keep their money in Singapore. Even though the client's monies are kept outside Singapore, I believe that they belong to the clients and should be returned to the liquidators on demand. I don' think that the foreign banks or other institutions have the right to reject the request of the liquidators to return the monies. But, it seems that international finance is getting very complicated and risky.
Role of government in regulation
I read this interesting story about the problems faced by the regulators on regulating neutrality on the Internet http://tech.fortune.cnn.com/2011/11/11/what-next-for-net-neutrality/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
It is clear that there is a need for a neutral party, i.e. the regulator, to set the rules to ensure a level playing field for all the parties, and for consumers to have access to unbiased information. But the big businesses are challenging the role of the regulators, using their lobbyists and lawyers and will bring the matter up to the Federal Courts.
America has clearly gone too far down the road in letting the businesses have their way. Their economy is collapsing, and is now being propped up by massive debts. It is likely to lead to dire consequences.
The US government has failed to govern. I am worried that Singapore may be in a similar situation.
It is clear that there is a need for a neutral party, i.e. the regulator, to set the rules to ensure a level playing field for all the parties, and for consumers to have access to unbiased information. But the big businesses are challenging the role of the regulators, using their lobbyists and lawyers and will bring the matter up to the Federal Courts.
America has clearly gone too far down the road in letting the businesses have their way. Their economy is collapsing, and is now being propped up by massive debts. It is likely to lead to dire consequences.
The US government has failed to govern. I am worried that Singapore may be in a similar situation.
Friday, November 11, 2011
Danger to the world economy when growth stalls
Quote from Mohd El-Erian of Pimco, manager of the world's largest bond fund.
"The concept of stall speed is not something that's familiar to the markets," he said. "That's what I find is terrifying. We can talk about the probability of recession when unemployment is already too high, when the financial deficit is 9 percent of (gross domestic product), when interest rates are already at zero percent and when a quarter of the homeowners are already underwater on their mortgages. That is a terrifying concept. That is why everything must be done to avoid a slowdown in growth."
http://www.cnbc.com//id/45253864
"The concept of stall speed is not something that's familiar to the markets," he said. "That's what I find is terrifying. We can talk about the probability of recession when unemployment is already too high, when the financial deficit is 9 percent of (gross domestic product), when interest rates are already at zero percent and when a quarter of the homeowners are already underwater on their mortgages. That is a terrifying concept. That is why everything must be done to avoid a slowdown in growth."
http://www.cnbc.com//id/45253864
Interest rate on bank deposits
Which bank offers the best interest rate on fixed deposits in Singapore? The lowest interest rate for 12 month deposit is 0.075% (less than 0.1%) and the highest is 0.625% (less than 1%).
Find out from FISCA website, http://easyapps.sg/assn/Org/Information.aspx?id=5
Should you invest in foreign currency to earn a higher interest rate? Here are the tips. Remember to consider the cost of coversion from Singapore dollar to the foreign currency and converting back. After considering this cost, and considering that the interest rate is so low, it is not worth investing in foreign currency. Read this:
http://tankinlian.com/Admin/File.aspx?id=91&PK=49eface4e1da102d8bb0a4b0889554e4
Find out from FISCA website, http://easyapps.sg/assn/Org/Information.aspx?id=5
Should you invest in foreign currency to earn a higher interest rate? Here are the tips. Remember to consider the cost of coversion from Singapore dollar to the foreign currency and converting back. After considering this cost, and considering that the interest rate is so low, it is not worth investing in foreign currency. Read this:
http://tankinlian.com/Admin/File.aspx?id=91&PK=49eface4e1da102d8bb0a4b0889554e4
Managing your retirement savings
This article give a useful explanation on how to manage your retirement savings and point out to some financial calculators on the Internet that you can use.
http://money.cnn.com/2011/11/10/pf/expert/retirement_withdrawal_strategies/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
http://money.cnn.com/2011/11/10/pf/expert/retirement_withdrawal_strategies/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Thursday, November 10, 2011
Occupy Wall Street - the issues
1. "#OWS is fighting back against the corrosive power of major banks and multinational corporations over the democratic process, and the role of Wall Street in creating an economic collapse that has caused the greatest recession in generations." It goes on: "The movement is inspired by popular uprisings in Egypt and Tunisia, and aims to expose how the richest 1% of people are writing the rules of an unfair global economy that is foreclosing on our future."
2. Our current capital markets are structured around a dangerous lie -- that the sole function of the corporation is to return value to shareholders. Under this construct, every action undertaken by Wall Street traders, mortgage brokers and the rest make perfect sense and are morally unambiguous. It was their job to sell as much as they could, to grab as much value as possible, in order to return that value to shareholders. So long as shareholder-value-maximization remains our governing principle, no change in regulations will change the fundamental behavior. Executives are simply acting according to their incentives.
http://management.fortune.cnn.com/2011/11/09/what-occupy-wall-street-got-right/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Itialy is too big to bail
The problem for Italy and the global financial system is serious.
http://money.cnn.com/2011/11/09/news/international/italy_crisis_bail/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
http://money.cnn.com/2011/11/09/news/international/italy_crisis_bail/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Wednesday, November 09, 2011
IMF chief - world risk "lost decade"
Quote: "Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand... we could run the risk of what some commentators are already calling the lost decade."
http://www.cnbc.com//id/45217763
http://www.cnbc.com//id/45217763
Instant Photos
I need 2 color photos for a visa application. I went to the instant photo booth at SMU. The charge was $8. It seemed to be rather high. I wonder how the students could afford it. It seemed to be more costly that I had expected.
Americans move accounts to credit unions
Many Americans are unhappy with recent increase in bank fees that they move their accounts to credit unions.
http://money.cnn.com/2011/11/08/pf/credit_union_switch/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Here are some of the reasons:
http://money.cnn.com/galleries/2011/pf/1111/gallery.move_your_money/index.html?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
http://money.cnn.com/2011/11/08/pf/credit_union_switch/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Here are some of the reasons:
http://money.cnn.com/galleries/2011/pf/1111/gallery.move_your_money/index.html?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Tuesday, November 08, 2011
High prices in Singapore
I went to the Challenger Store to look a laser presentation remote device. They should me a few Targus models costing more than $120 each. This was rather expensive, as my friend told me that he bought a device for less than $30 in Sim Lim Square.
I went online to search for this item. A few Targus controllers were offered at Amazon store at around USD 50 (excluding shipping). This seemed to be at about half of the price charged by Challenger. I finally decided to buy another brand and paid less than $20 including delivery charges.
This episode seems to show that prices are really expensive in Singapore! It must be due to the high rental and staff cost.
I went online to search for this item. A few Targus controllers were offered at Amazon store at around USD 50 (excluding shipping). This seemed to be at about half of the price charged by Challenger. I finally decided to buy another brand and paid less than $20 including delivery charges.
This episode seems to show that prices are really expensive in Singapore! It must be due to the high rental and staff cost.
Forex trading - developing the skill
Here are some tips on how you can develop your skills in forex trading, without having to pay high fees to attend a course. It also warns you that trading is like gambling, similar to visiting a casino. But it can be fun.
Settlement without admitting wrong-doing
If big banks get to settle with the SEC without admitting or denying any wrongdoing, what good does a settlement do in the end?
By Eleanor Bloxham, CEO of The Value Alliance and Corporate Governance Alliance
FORTUNE -- To admit or deny -- that is the question -- or one of them anyway, that the SEC will have to address when they respond to Judge Jed S. Rakoff's review of the regulator's recent settlement with Citigroup. Although Citi has agreed to pay $285 million and make minor reforms, the bank is neither admitting nor denying that they failed to properly disclose the risks of mortgage-related investments to clients in the run up to the housing crisis.
My comment: At least this is one step better than Singapore, where wrong doings go unchallenged - due to lack of regulatory action.
Warren Buffet and stocks
Warren Buffet is confident about investing in US stocks during the current global uncertainty. He takes a long term perspective.
http://money.cnn.com/2011/11/07/markets/buffett_stocks/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Here is the fundamental to back his optimism. Profit of companies are at a record level.
http://www.cnbc.com//id/45195111
http://money.cnn.com/2011/11/07/markets/buffett_stocks/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Here is the fundamental to back his optimism. Profit of companies are at a record level.
http://www.cnbc.com//id/45195111
Customers move to credit unions
Quote:
NEW YORK (CNNMoney) -- Credit unions and small banks say they've seen big jumps in new account openings thanks to this weekend's "Move Your Money" and "Bank Transfer Day" initiatives, but do the big banks even care?
Digital Federal Credit Union, the largest credit union in New England with 330,000 total members, welcomed 133 new members on Saturday. That's 56% higher than the average 85 account openings it sees on a typical Saturday.
Note: Credit unions are member based organisations, like the cooperative societies in Singapore, that provide basic services to members, including savings and loans.
Scam - Delivery of Gifts
This is a new scam in Singapore, involving delivery of gifts.
http://tankinlian.com/admin/file.aspx?id=593
http://tankinlian.com/admin/file.aspx?id=593
Monday, November 07, 2011
Big increase in suicides?
I received a regular e-mail on suicide cases. It seems that there is a big increase in suicides in Singapore - Bedok Reservoir, MRT tracks, fall from HDB flats. This is suspected to be linked to gambling losses at the casino.
Reduce cost through contract employees
Government employees are now being put on contract at half of the usual wages in the USA. The government has to take this measure to cut the budget deficit, because they are not able to collect sufficient taxes to pay the employees adequately. In other places, these measures are taken to reduce cost, but it is a form of exploitation of workers. The contract workers barely earn enough to pay their bills.
http://www.cnbc.com//id/45187246
http://www.cnbc.com//id/45187246
Kin Lian the link between Pinnacle, High Notes cases
Published in the Business Times. I hope that the top management of DBS reads the Business Times and decide to be magnanimous.
By GRACE LEONG(SINGAPORE) Two court rulings issued this week - one in Singapore and the other in New York involving Singapore investors of DBS High Notes 5 and Morgan Stanley's Pinnacle Notes respectively - couldn't have turned out more differently.But they have one thing in common - former presidential hopeful Tan Kin Lian. He was among those providing advice to investors affected by the bankruptcy of US investment giant Lehman Brothers, and organised petitions to the government to investigate possible wrongdoings by local banks in the sale and marketing of Lehman- linked products such as High Notes, Pinnacle Notes and Minibonds.He said that the Pinnacle Notes ruling highlighted the difference in legal recourse available to investors in Singapore and America.'In the US, a lawyer can bring cases under a 'success fee' arrangement, where the investors do not have to bear any legal cost, if they do not succeed in the case. The lawyer takes on such cases after studying the chances of success for the effort, time and expense he makes in undertaking the case. But it gives the small people a chance to seek redress.'So far, the Pinnacle Notes investors have not had to cough up a single cent in bringing the case against Morgan Stanley and its affiliates in New York. And even if they lost the case, they're not liable for the defendants' legal costs.But that's not the case for DBS High Notes 5 investors, who lost their appeal against the High Court's decision that the Singapore bank owes them nothing.'The investors already lost all of their investments. They now have to bear their legal expenses and, possibly, the expenses of the DBS lawyer,' Mr Tan said.The DBS investors, who collectively lost $18 million when the structured product failed with the Lehman Brothers' collapse in 2008, had sued the bank, arguing that the DBS High Notes 5 were void at the time they were issued.But the Singapore Court of Appeal, in a judgment this week, ruled: 'A person who signs a contract which is set out in a language he is not familiar with or whose terms he may not understand is nonetheless bound by the terms of that contract.'In contrast, the US federal court hearing the Pinnacle matter observed that warnings in offer documents do not always provide immunity.'While there is little doubt that the cautionary language warned plaintiffs that (Pinnacle) Notes carried some risk, it is inadequate to have put the reasonable investor on notice of the alleged fraud,' US District Judge Leonard Sand ruled.That finding is pivotal because it allows the issue to be examined at trial of whether issuers and arrangers of such products should have legal immunity through 'generalised warnings of risk' buried in many investment products.Now that the Court of Appeal has ruled, Mr Tan said that it would be a 'a good time for DBS to be compassionate and magnanimous in undertaking to bear the legal cost of both sides, so that their customers do not have to bear any further loss'.
Story of Singapore, Hong Kong and USA
This is an interesting account of how retail investors are protected, or not protected in Singapore, Hong Kong and USA. It is a sad account for the investors in the DBS High Notes 5.
http://singaporemind.blogspot.com/2011/11/video-clip-from-meltdown.html
http://singaporemind.blogspot.com/2011/11/video-clip-from-meltdown.html
Strange rules
Singapore has many strange rules to determine who qualifies for certain benefits. Here is an example about the income ceiling that qualifies for a BTO (built-to-order) or subsidised HDB flat.
http://theonlinecitizen.com/2011/11/bto-flat-income-ceiling-rules-why-include-commissions-but-exclude-bonuses/
This type of rules apply to many other areas, such as means-testing, access to welfare assistance, etc. This is what life is like in Singapore:
http://theonlinecitizen.com/2011/11/bto-flat-income-ceiling-rules-why-include-commissions-but-exclude-bonuses/
This type of rules apply to many other areas, such as means-testing, access to welfare assistance, etc. This is what life is like in Singapore:
- Convoluted
- Wasteful in spending time in rationalizing and managing these complexities
- Creating a selfish and self-centered people, fighting for their self interest.
A better system is to manage the economic and social life so that the wages are in line with the cost of housing and cost of living, so that all these convoluted rules are not required.
Banks selling off bad loans
This is an interesting investment for cash waiting to be invested, to buy off the bad loans from banks at a hefty discount. However, the problem is in finding the right honest manager to manage the funds that are invested in these bad loans. It could be a solution to the mess involving the bad mortgage loans on properties that have now fallen in value.
http://finance.fortune.cnn.com/2011/11/04/bank-bad-loans/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
http://finance.fortune.cnn.com/2011/11/04/bank-bad-loans/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Honest way to get rich
There is an honest way to get rich - an example shown by Steve Jobs. He is highly respected, even by the 99 percenters. Read this:
http://tech.fortune.cnn.com/2011/11/06/the-tea-party-occupy-wall-street-and-steve-jobs/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Another well respected man is Warren Buffett. He is the among the few multi-billionaire that stick with President Barack Obama during his difficult time as President.
http://tech.fortune.cnn.com/2011/11/06/the-tea-party-occupy-wall-street-and-steve-jobs/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Another well respected man is Warren Buffett. He is the among the few multi-billionaire that stick with President Barack Obama during his difficult time as President.
Revenue of telephone companies
Telephone companies are getting less revenue from voice service, and are relying more on data services for their revenue and profit.
http://tech.fortune.cnn.com/2011/11/04/telecoms-big-hang-up/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
http://tech.fortune.cnn.com/2011/11/04/telecoms-big-hang-up/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29
Sunday, November 06, 2011
FISCA Financial Planning Workshop - 26 Nov 2011
The next workshop will be held on 26 Nov 2011. Please register early.
http://easyapps.sg/assn/Org/Event.aspx?id=5
http://easyapps.sg/assn/Org/Event.aspx?id=5
Investing and speculating
The Sunday Times carried a story about young people who were investing in stocks and CFD (contract for differences). Some made trading losses but are still keen to continue "investing" in the market.
It is important to use the correct term to describe the activity. It should be called "trading" or "speculating" and not "investing".
When one "invest" in a company, one has to study the fundamentals of the company with the intention of holding it for many years to earn its dividend and the long term capital gain. I know of people who bought blue chip shares and kept them for 40 years. That is "investing".
Those who buy and sell shares to make a short term gain should be called "speculators" or "traders" and not "investors". There is nothing wrong with speculating or trading in shares, or gambling in the casino, if the speculator is aware about the risk and is mentally prepared for the consequence of making a loss, while pursuing a gain. It would be wrong to be deluding that they are "investing" in the stock market.
I hope that our financial journalists will use the correct term to describe the activity, so that the speculators are not deluded into thinking that they are carrying out an "investing" activity.
It is important to use the correct term to describe the activity. It should be called "trading" or "speculating" and not "investing".
When one "invest" in a company, one has to study the fundamentals of the company with the intention of holding it for many years to earn its dividend and the long term capital gain. I know of people who bought blue chip shares and kept them for 40 years. That is "investing".
Those who buy and sell shares to make a short term gain should be called "speculators" or "traders" and not "investors". There is nothing wrong with speculating or trading in shares, or gambling in the casino, if the speculator is aware about the risk and is mentally prepared for the consequence of making a loss, while pursuing a gain. It would be wrong to be deluding that they are "investing" in the stock market.
I hope that our financial journalists will use the correct term to describe the activity, so that the speculators are not deluded into thinking that they are carrying out an "investing" activity.
Capitalism is in crisis
Many people still think that capitalism is a good economic model. The truth is - it is the cause of many of the bad things that are happening around the world - greed, cheating, high cost of living, stress, low birth rate, crime. Read this article to get a similar view:
http://english.aljazeera.net/indepth/opinion/2011/11/201111191022862285.html
QUOTE:
http://english.aljazeera.net/indepth/opinion/2011/11/201111191022862285.html
QUOTE:
The economic system underlying empire-building today has a name: capitalism. Or, more precisely, a predatory corporate capitalism that is inconsistent with basic human values. This description sounds odd in the US, where so many assume that capitalism is not simply the best among competing economic systems but the only sane and rational way to organise an economy in the contemporary world.
Although the financial crisis that began in 2008 has scared many people, it has not always led to questioning the nature of the system.That means that the first task is to define capitalism. It is an economic system in which:
- Property, including capital assets, is owned and controlled by private persons;
- Most people must rent their labour power for money wages to survive; and
"Industrial capitalism", made possible by sweeping technological changes and imperial concentrations of capital, was marked by the development of the factory system and greater labour specialisation. The term "finance capitalism" is often used to mark a shift to a system in which the accumulation of profits in a financial system becomes dominant over the production processes.
- The prices of most goods and services are allocated by markets.
Today in the United States, most people understand capitalism in the context of mass consumption - access to unprecedented levels of goods and services. In such a world, everything and everyone is a commodity in the market.
In the dominant ideology of market fundamentalism, it's assumed that the most extensive use of markets possible, along with privatisation of many publicly owned assets and the shrinking of public services, will unleash maximal competition and result in the greatest good - and all this is inherently just, no matter what the results.
If such a system creates a world in which most people live in poverty, that is taken not as evidence of a problem with market fundamentalism but evidence that fundamentalist principles have not been imposed with sufficient vigour; it is an article of faith that the "invisible hand" of the market always provides the preferred result, no matter how awful the consequences may be for real people.
How to critique capitalism in such a society? We can start by pointing out that capitalism is fundamentally inhuman, anti-democratic and unsustainable:
Calculation of interest rate
Courts advertised a 42" HD LED TV for a cash price of $799 and gives an option to pay in weekly installments of $7.91 over 48 months. What rate of interest is included in this plan? Do you calculation and check your answer here. http://tankinlian.com/Redirect.aspx?PK=a2b03a8458f4102f8aebde1ae83d78a1
Interest rate on installment payments
This article shows how to calculate the interest rate on installment payments, and how to save on the heavy interest charges. It is advisable for those who buy expensive items on installment payments, especially young people, to realize the heavy cost of this payment plan. The interest rate has increased from 36% previously to 48% per annum now. It is quite expensive!
http://tankinlian.com/admin/file.aspx?id=592&PK=0e53cd3c5970102f8aebde1ae83d78a1
http://tankinlian.com/admin/file.aspx?id=592&PK=0e53cd3c5970102f8aebde1ae83d78a1
Unemployment benefit in USA
This article gives a good explanation of the system of unemployment benefits in the USA. The benefit is given for a short period, to help the unemployed people to tide over a short period so that they can find the next job. This usually works well, except in a prolonged recession (which is happening now). Apart from helping to relieve hardship, the unemployment benefits help to spur economic growth. The question that the USA has to face is how to cope with the prolonged recession. President Obama wants to extend the unemployment benefit, but needs Congress to approve the additional funding (as the US debt is already too high!).
http://www.cnbc.com//id/45174237
http://www.cnbc.com//id/45174237
Saturday, November 05, 2011
I vow to thee my country
A stirring and patriotic song.
http://www.youtube.com/watch?v=aaYsapDNrFw&feature=related
http://www.youtube.com/watch?v=KHh8isGtB6w&feature=related
Lyrics and history
http://tankinlian.com/admin/file.aspx?id=585
http://www.youtube.com/watch?v=aaYsapDNrFw&feature=related
http://www.youtube.com/watch?v=KHh8isGtB6w&feature=related
Here is a version with spoken words
Lyrics and history
http://tankinlian.com/admin/file.aspx?id=585
Negative comments about Forex Schools
Dear Mr. Tan,
There are many negative comments about various Forex schools in Singapore. Some could be fake, some could be real. Whatever it is, government won't do anything base on rumours I suppose, unless many students lodge complaints like Clement Chiang's case.
But I believe something can be done:
1. Stop all the schools who claim themselves to be number 1, especially in their official website. Example of such schools are JF Lennon and Powerup Capital. How do they even gauge themselves to be number 1? It is dangerous for the public.
2. Warn Powerup Capital to remove their 100% accuracy claim in their website as there is no such thing as 100% in financial market isn't it?
3. Forex trainers to undergo exams and certify to teach. A person who prescribe medicine without being a certified doctor could be dangerous.
4. Forex trainers to produce their own live trading results for a period of time before getting the certificate as well.
5. Probably all the students who sign up for any course, are needed to send feedback to the MAS or whoever just after the course, being reminded by the trainers. One of the questionnaires could be "Did the trainer state all the possible risk". Probably the second feedback is needed after some time as well because students need to try out the things taught for a period of time.
6. If the trainer tells the audience that his student make $10,000 from $2000 after 3 months for example, then he should get a print screen of the real live statement. The name of the student should be there. The account number can be blackened. So as not to have empty talk and cheat the people. They must also claim that not all students could get this result.
I am sharing these because you may have the influence or power to help eliminate any possible bad practices.
Please read the comments posted here:
http://www.forexdna.com/education_revInfo.php?id=44
There are many negative comments about various Forex schools in Singapore. Some could be fake, some could be real. Whatever it is, government won't do anything base on rumours I suppose, unless many students lodge complaints like Clement Chiang's case.
But I believe something can be done:
1. Stop all the schools who claim themselves to be number 1, especially in their official website. Example of such schools are JF Lennon and Powerup Capital. How do they even gauge themselves to be number 1? It is dangerous for the public.
2. Warn Powerup Capital to remove their 100% accuracy claim in their website as there is no such thing as 100% in financial market isn't it?
3. Forex trainers to undergo exams and certify to teach. A person who prescribe medicine without being a certified doctor could be dangerous.
4. Forex trainers to produce their own live trading results for a period of time before getting the certificate as well.
5. Probably all the students who sign up for any course, are needed to send feedback to the MAS or whoever just after the course, being reminded by the trainers. One of the questionnaires could be "Did the trainer state all the possible risk". Probably the second feedback is needed after some time as well because students need to try out the things taught for a period of time.
6. If the trainer tells the audience that his student make $10,000 from $2000 after 3 months for example, then he should get a print screen of the real live statement. The name of the student should be there. The account number can be blackened. So as not to have empty talk and cheat the people. They must also claim that not all students could get this result.
I am sharing these because you may have the influence or power to help eliminate any possible bad practices.
Please read the comments posted here:
http://www.forexdna.com/education_revInfo.php?id=44
Bhutan teacher reply to Singapore Minister
This article is being circulated by e-mail and purported to be written by a Bhutan teacher in reply to remarks by Minister Khaw Boon Wan.
http://www.tankinlian.com/Redirect.aspx?PK=bd767f8d58f6102f8aebde1ae83d78a1
http://www.tankinlian.com/Redirect.aspx?PK=bd767f8d58f6102f8aebde1ae83d78a1
Legal action on Pinnacle Notes
The US lawyer has crossed one major hurdle in getting the legal action on the Pinnacle Notes being heard in the court in New York. Here is an explanation about the legal action and the time expected for the case to be settled. http://www.tankinlian.com/Admin/NewInformation.aspx?pk=a2b03a8458f4102f8aebde1ae83d78a1
Discrimination against Singaporeans
Dear Sir,
Kindly see the these links and read the content.
http://theonlinecitizen.com/20
http://sg.news.yahoo.com/don-t
I think the MOM is not doing enough and I believe this time round many PMETs are waiting for someone to come out and help speak for us. Perhaps we need to bring out to the open those Foul Practises and FT HRs that are doing these bad things to Singaporean.
REPLY
Kindly see the these links and read the content.
http://theonlinecitizen.com/20
http://sg.news.yahoo.com/don-t
I think the MOM is not doing enough and I believe this time round many PMETs are waiting for someone to come out and help speak for us. Perhaps we need to bring out to the open those Foul Practises and FT HRs that are doing these bad things to Singaporean.
REPLY
Please approach Gibert Goh who is organising this effort through his website: http://www.
More importantly, you should round up many people to support Gilbert Goh'S efforts, as he needs funding, resources and other kinds of help.
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