Government can help to improve productivity

My letter has been printed in the Straits Times
http://www.straitstimes.com/st/print/667058

The Editor
Forum Page
Straits Times

DEPUTY Prime Minister and Finance Minister Tharman Shanmugaratnam has asked small businesses to improve productivity and reduce the reliance on foreign workers ("Tackle labour crunch with productivity push: Tharman"; last Saturday).

Having managed a small business for the past four years, I have found that my staff are needlessly diverted to handling transactions that could have been done more efficiently under a better working environment.

I have to make most payments by manual cheque. Just imagine the time taken to write, sign and mail a cheque; and for the other party to receive it and bank it in; and for the bank to clear it.

I was staggered to learn that about 78 million cheques were processed in 2009.

Most of these were payments made by small businesses.

I must also expend significant time submitting regular returns to the websites of the Central Provident Fund, the Manpower Ministry, the Accounting and Corporate Regulatory Authority, the Singapore Armed Forces and other government or government-related agencies.

These online processes were created to reduce work for the government agencies but, unfortunately, cause the public to waste time on online submissions as a result of complicated and poorly designed websites.

Retrieving replies from the websites is also quite troublesome.

I have to read a page of instructions just to retrieve a reply from a website, when it could have been sent to me directly by e-mail.

The Infocomm Development Authority had announced the OneInbox project to allow members of the public to receive their replies from government agencies via a centralised website.

Why is this project taking such a long time to be implemented?

Several of my suggestions to the Pro-Enterprise Panel under the Ministry of Trade and Industry were attended to, but did not address the underlying problems.

The Government should look into these issues and improve the working environment for small businesses to operate more efficiently.

Tan Kin Lian

Cover design for my book

I wish to look for someone to design the front and back covers
for my book
http://tankinlian.com/Admin/File.aspx?ID=711&Frame=1

Submit your proposal to kinlian@gmail.com

Discover the Hidden Letters

Free copy of this book is now available at 
http://tankinlian.com/admin/file.aspx?id=711&IID=716

Master Mind (1-20)

Here are 20 puzzles modeled on the popular game, Master Mind.
http://tankinlian.com/admin/file.aspx?id=710&IID=714

Here are the answers to the above puzzles.
http://tankinlian.com/External.aspx?IID=715

My financial education journey - Part I (Isabel)

Dear Mr. Tan

After my youngest son goes to army, I suddenly find I have some free time on hand.   All these years of working for the children, setting aside funds for the rainy days, building a home (not exactly in that order), it is a relief to be able to sit back and see how I can improve my financial position.

For years, my husband and I blindly bought into properties and stocks and every time there was nagging fear if it was a good buy.   We are good for falling in love with whatever we buy, good or bad.  So the market goes up and it comes down and we go with the flow.   So you can guess our financial situation.  We have enough to get by but not what you will term as affluent.

Last few months, I decided to start my financial education journey.

First, I bought a few books by Robert Kiyosaki/Kim (his wife)/Donald Trump.  The teaching is quite different from Warren Buffett.  Some of what Robert writes are obviously not suitable for Singapore especially pertaining the tax laws.   I am still puzzled how he can leverage so much and the banks are not calling for top up when the property prices drop.   Know of anyone who was so confident that he sold his house and use the money to buy into many properties just before the recent market crush?

Warren is usually buy and hold or until he thinks the business no longer suits him.  Robert is buy and sell and move on.   I believe both techniques can be applied to maximize the gain.  I do know of someone who do this.   

I went to a preview by a company that teaches value investing.  The cost for the course is >3K.   The course also teaches options (what Robert K and Warren B are good at).   This options trading is available for US stocks not Singapore.   The lecturer is energetic and fun.  But I think this is too much to pay.

I also attended the SGX course preview on “creating a secondary income stream – through long term shares investing & investing in real estate sector (property stokcs/RETIS).   It was a good course and the cost for 12x3 hrs is affordable.  With FA/TA course thrown in.  The course basically teaches fundamentals like time value of money/economic/financial statement/business/industry analysis and investment principles.  I signed up for my husband, my daughter and myself.   I believe opportunities are aplenty but we must be armed and shielded with knowledge in order to grasp these opportunities.   I hope I will be confident the next time opportunities come knocking at the door.

The SGX course on “making trading your source of income” preview is an eye opener.   This is really a short term investing for cash flow.   The lecturer delivered a good clarity in the concept.   However, I do not think this is the right tool for me.   This is too fast paced for my heart. 

I then went for a talk by Philip Capital “How to Profit CONSISTENTLY in Stock Market” where a CK Ee from Asia Charts delivered his speech.  Ee was fun and he got the whole room (must be more than 100+ attendees on a Saturday morning) laughing with glee.  He is very knowledgeable and obviously he walks the talk.  He is realistic and warned the audience that there will be bad and good days.  But important to learn from it all and keep a journal.   He teaches discipline and urges investors to have good understanding of market behavior (the interpretation of news), a good plan (to accurately analyse the market) and when to enter and exit.  He trades for cash flow and capital gain.  If I have a chance, I will like to join his course.

I went to a preview on swiftlet farming.  The trainer showed the swiftlet migration path, Malaysia, Indonesia etc.  The business idea is quite interesting.  Basically they work with locals and hopefully some research institutions and wholesaler.  The swiflet farm is in Sandakan, Sabah. The investors buy the wooden huts and the local will help to maintain and harvest the bird nests.  It will take a few years to have returns which is not guaranteed.   The consortium will buy the bird nests and pay the investors based on market price.   The consortium is hoping to link up with some research institution to give some credibility to the bird nest  harvested from Sabah due to the recent clam down by China due to contamination.   I find this venture a bit expansive and not certain.  The wooden huts are sold at a premium to the investors.   One is never sure if the birds will really nest in your huts.  As the areas are not really easily accessible, one has to depend on the consortium management to ensure no thefts.  At the end of the day, the price of the nest is a question mark.  The plus points are that the consortium delivers the huts and management the scheme and buy the nest from you.  Unless of course, you prefer to consume yourself, but will be hours of back breaking tasks to pick all the down feathers.

I went to two property courses preview.  One is “how to invest in property with little risks” by Azea Property Investment.   The trainer was fun and knowledgeable.  Basically the concept is similar to Robert Kiyosaki/Donald Trump - investing for cash flow.  Some of the properties showcased are impressive.  The lady boss Tan Yang Po is well known.  She is featured in 938 live.  From what I know listening to her via 938 live, she basically has the muscles (together with the students who turned investors) to negotiate for good deals.  I do believe the model works.  She gives much better value than some of the investments brought to Singapore – “3 properties in USA for 200K!” shouted the advertisement in the Straits Times some months ago.   The course is attractive from networking and the opportunity to buy into some of the below the water properties.  There are aplenty such properties in US and EU.  But the skill is to sniff out the good buy and rental generating properties.   I am impressed by two buys – one in London and the other in US near the university.   However, one has to consider that these are oversea properties.   My preference is still to be able to see my investments whenever I want to.

The other property course preview is none other than ERC – Andy Ong.  I went to one of Andy’s course in 2007.   I find him genuine and willing to teach and help.   He is astute in property investment.   Around 2007, he  bought into River Valley property to be used as class rooms.  Recent years, see him investing into commercial.  His portfolio is impressive to people who know his background.  I first heard of him when I took up financial planning course years ago.  At the time, one of the text books specified by FPAS is by him.   I like to reconnect with him and I believe there is much to learn from him.

Then the latest course I went to is by Sam Goh “ A - Z of Investing - Gold & Silver”.  The reason I went is that Robert K has been talking a lot on gold and silver.  With the delink of currency from gold, and the QE infinite, who will not be worried? USD is on the slippery slope to don’t know where and every government is printing money.   There is only one way for commodity to go – up.   I cannot buy and take delivery on oil/coffee/tea/nuts etc.  The only commodity is then gold/silver.  At 25 and be financially free is impressive.  There must be something I can learn from Sam.   The talk content is what I expected.   I learnt something new.  I can actually buy and silver and gold from UOB and I do not have to take delivery but just use the passbook.   I joined his  club membership. 

Regards,

Isabel

Different pay of workers

Dear Mr. Tan

There are a lot of commentaries in the media on the China SMRT drivers.

The usual practice in the industry is that the pay is normally different for employees from different countries.  The employers look at the gross expenses and the gross should be more or less the same across.  Take for example, Indian technician with an “S” pass is paid minimum S$2K as per the law (they should have diploma in technology and some years of working in the similar industry).  Work permit holder from Malaysia of “O” level and above is paid $1.6-1.7K as levy is part of the expenses to hire Malaysian.  Same goes for Chinese.

Chinese workers are more vocal and demonstrative/assertive.   While Indian and Bangladeshi are more compliance and submittal. 

The employees have signed to the contract terms.   It is always good HR policy to tell employees that they should not disclose their pay.   This is to prevent the employees from becoming unsatisfied.   It is also true that most executive will not share this info especially if the merit is built into the pay.   For rank and file, they do compare.  So expectation should be set. 

This is just my personal view.

Regards,

Isabel

Inform foreign workers about the law

14 November 2012 (not published by St Times)

Editor, Forum Page

Straits Times

I wish to ask if our bus operators and other establishments

that provide essential services have made special efforts to 

notify their employees, especially the foreign workers, that 

they would be committing a crime, if they went on on an 

illegal strike and disrupt public transport and other 

essential services.

Perhaps it should be made compulsory for them to join a

trade union, so that they can be represented by the trade

union and advised on how their grievances can be addressed.

It is compulsory for businesses to be a member of the 

Singapore Business Federation. This same compulsion should

be extended to workers in essential services, with the membership

fees borne by the employee. As the employer now has to 

bear the worker's levy, the cost of the membership fee should be

quite small

Tan Kin Lian

Using emotion in relationship

Singapore is an unemotional people. Read the views by Seah Cheang Nee.
http://thestar.com.my/news/story.asp?file=/2012/12/8/focus/12428622&sec

Dilemma of contract workers

The employer is able to impose different working conditions for contract workers
http://www.tremeritus.com/2012/12/04/bus-strike-exposes-dilemma-of-contract-workers/

The law on employment should be changed to treat contract workers fairly.

Increase in property tax

The high prices of HDB flats have now hit existing flat owners through increase in property tax
http://www.tremeritus.com/2012/12/05/the-real-reasons-why-pap-increases-property-tax-for-hdb-flats/

This is bad for most people.
It is time to review the policy of market pricing of HDB flats!

Difficult conditions for PRC drivers

Here is another side of the story that many Singaporeans are not aware of
http://theonlinecitizen.com/2012/12/the-indignity-that-singapore-bus-drivers-smrt-have-to-go-through/

Lemon Law and Services

Mr Lee attended a preview for a Forex Training Course. He signed a voucher to charge $4,000 plus to his credit card. He changed his mind and did not attend the course. The trainer charged his credit card and the bank pressured Mr Lee to make the installment payment with interest. Can Mr Lee get off using the "Lemon Law"?

Reflect on the issue of PRC bus drivers

Mr. Feed gives his views about the issue of the PRC bus drivers
http://feedmetothefish.blogspot.com/2012/12/are-we-proud-of-what-happened-to-prc.html

Unequal pay for the same work

Watch this experiment and know why people do not like to be treated unfairly
http://www.upworthy.com/2-monkeys-were-paid-unequally-see-what-happens-next?c=upw1

Governor of Jakarta - Joko Widodo

I travel to Jakarta monthly and have the fortune to talk to my Indonesian friends, who tell me about their new Governor. I wish to introduce Joko Widodo to my Singaporean friends. I hope that our leaders can emulate his good example.
Read the honest views of the residents of Solo (Surakarta) where he served as mayor for two terms.http://www.worldmayor.com/contest_2012/comments-surakarta.html
He is clearly an inspirational and well respected leader.

My views about the "unofficial strike"

My sympathies are with the workers who were involved in the "unofficial strike", although I wish that they could have used other channels to express their grievance. I hope that this incident will make the government leaders and top management more aware about the ground feelings.

I know that the unofficial strike is inconvenient to public transport users (and I am one of them). I also know that traffic delay are regularly caused by serious accidents and traffic congestion during peak hours. In this respect, I would not exaggerate the seriousness of the incident. I understand the paranoia that this can cause a flood gate towards more serious industrial action in the future, although I personally do not share this fear.

I know that many Singaporeans are not as tolerant as I am, and they will raise "a public outburst" about the inconvenience caused by the disruption. We should learn to be sympathetic to the plight of other people and should not only focus on their own convenience.

As a Singaporean, I do not wish to take side against the PRC workers. I wish to treat them the same as for local workers. Some of the "public outburst" against the workers are based on their PRC origin. I find this discrimination to be unacceptable. We should not practice discrimination - racial, religious or cultural. We must treat everyone fairly and without discrimination.

Those who know me well will recognize that I often speak for the under-dogs and for people who are oppressed by the social or economic environment.  This is just another example of the way that I see things. I hope that more Singaporeans will join me in seeing issues from this angle.

Trading in binary options

There is a new trading product, called Binary Options. Here is the analysis of this product. 
http://tankinlian.com/admin/file.aspx?id=709&IID=713

Master Mind

Like the game Master Mind? You have to guess the colors and position of the pins according to the clues given to you. Here are some puzzles. Don't look at the answers on the last page, until after you have tried them. This is a test of logic.
http://tankinlian.com/admin/file.aspx?id=708&IID=712

Repatriation of SMRT bus drivers

29 bus drivers, who participated in the illegal strike are being repatriated. They will get their pro-rata bonus and the cost of passage will be borne by their employee. This is a good solution to the dispute.

Five instigators will be charged in court for breaking the law. Read the views of Mr. Feed here:
http://feedmetothefish.blogspot.sg/2012/12/the-right-to-decent-living-power-and.html

It is sad that they will be made an example and take the rap, in accordance with the saying,  "kill the chicken to frighten the monkey". What an unjust society.

SMRT will have to take measures to address the concerns of the remaining workers and improve their wages and living conditions.

Joko Widodo, Governor of Jakarta

Here are some comments about Joko Widodo, the Governor of Jakarta. He was previously the Mayor of Solo (Surakarta). He is highly respected. 
http://www.worldmayor.com/contest_2012/comments-surakarta.html

Measure and calibrate

Investment-linked or universal life?

Which is a better insurance plan - investment link or universal life?
This article explains what to look out for, and to avoid!
http://tankinlian.com/Admin/File.aspx?ID=703&Frame=1

Elderly with no medical insurance

Dear Mr Tan,
My mother is a homemaker, age 63 and has diabetes several years ago . I tried to buy NTUC Incomeshield for her protection on medical/hospital bill but application was rejected.

I'm very worried on the high medical bill that might incur should anything happens. Can you please advise if there is any plans that can provide medical protection for my mom?

REPLY
Do not worry. There are many elderly people with chronic illness and no insurance cover. They manage. There are government medical schemes for elderly to manage their chronic illness. They can get regular treatment from a doctor at subsidized rates. 

Read this article about how to manage the hospital bills.
http://tankinlian.com/admin/file.aspx?id=698&IID=702

How to go on strike

http://singaporemind.blogspot.sg/2012/12/recent-strike-action-through-kids-eyes.html

To punish or not to punish?

For those who insist on harsh punishment to the 4 SMRT drivers, let me share this story with you.

Forty years ago, I was driving at 90 kpm on a motorway in the UK. A police car stopped me. The policeman said, “Sir, do you know that you are exceeding the speed limit?”

I replied, “Sorry, I thought that there was no speed limit on the motorway.”

He said, “Sir, you are wrong. There is a speed limit of 65 kpm. As you are a visitor to our country, do be aware of our law when you drive along our roads”. He did not book me.

For the rest of my life, I know what is a civilized, considerate and fair society.

If he had fined me, I would have paid the fine, and would not feel that this have the same respect for that society. If I had been sent to jail, I would probably hated that society and their people, for mistreating other people.

So, to those narrow minded and bigoted fellow citizens (which I hope is the minority), reflect on this carefully. Yes, you want to enforce your law harshly, including laws that are unjust. When you are go to another country and are sent to jail for a law that you are not aware of, you should not expect to be treated with compassion.

You will face another risk. For people who were badly treated in Singapore, they and their friends will hate us. When you meet them in other countries, be careful and be ready to face their hatred and retaliation.

Better stay in your own country, where you can be safe

Do not show the ugly side of Singaporeans

Many Singaporeans have expressed their anger and hatred of foreigners working in Singapore. This hatred is especially directed to the foreign workers from China. The recent "strike" by the SMRT drivers has given them the opportunity to vent their anger again.

I like to ask these Singaporeans to consider the following points:

a) The words that they use, and the manner of their expression, reflect badly on their personal character and show them to be narrow minded, uncivilized and acting like hooligans.

b) Their manners and hate mongering reflect badly on Singaporeans in general

c)  If we hate other people, we should be aware that other people can also hate us. Just watch the internet websites of other countries to see their opinion of Singapore and our people.

d) The number of people who hate us can outnumber us by hundred of times.  Do we want to travel to other countries and meet people who have reasons to hate us, due to the way we treat their fellow men?

My request to fellow Singaporeans is to reflect on these points and be civilized in the manner that they express their views. Be considerate and respectful to other people. Build goodwill. Find reasons to like other people, rather than to hate them. Be helpful to other people, especially those who need our help.

I also ask other Singaporeans who agree with me, to come in and help to tell these rude people off. Do not stand by idly and be silent and allow them to show a bad image of Singaporeans to the world.

Personally, I do not like the big influx of foreign workers into our country, but the fault is with the policy of our Government. We should not vent our anger on the foreign workers; many of them have made sacrifice to come to Singapore; were misled about the wages and living conditions in Singapore and are now suffering as much as the local Singaporeans that they have displaced.

Tan Kin Lian

Arrest of SMRT bus drivers for instigating a strike

The authority decides to charge 4 SMRT bus drivers for instigating an illegal strike involving an essential service. http://www.channelnewsasia.com/stories/singaporelocalnews/view/1240133/1/.html

The Chinese embassy in Singapore has expressed concern about the arrest action being taken against their nationals working in Singapore. http://www.straitstimes.com/breaking-news/singapore/story/chinese-embassy-expresses-concern-about-arrests-four-smrt-bus-drivers-

This is likely to lead to a diplomatic row that could turn quite ugly, if it is not being handled properly. Here are the issues at stake:

1) There is a law involving an illegal strike and disruption of essential public service, which the Singapore authority has to enforce.

2) The 4 "instigators" could feel that they are expressing their grievance over pay and working conditions and unfair discrimination.

3) It is possible that many of the foreign bus drivers could have paid a large sum of money to come and work in Singapore. They probably found the cost of living and the terms of employment to be unsatisfactory and they are now stuck with these terms, and they have no avenues to express their grievance.  Their government would probably be required to take their side to protect their "human rights".

4) This incident could probably put the employment and other practices in Singapore in an unfavorable light, especially the weak bargaining position of not only the foreign workers, but the local workers as well. It would also show some of the laws in Singapore to be unjust.

5) It is probable that the 4 "instigators were initially not aware about the law in Singapore and have not been advised. It might be possible that they were warned and they did not care anyway, as they have "nothing more to lose".

Whatever is the situation, it will be difficult for the Singapore authority to enforce the law harshly, considering the circumstances. A better way is for the authority to get the help of the Chinese embassy to solve this issue. A good outcome is for these 4 "instigators" to be let off and even allowed to return home with passage given by the government or their embassy. After that, we will have to review our practices and some laws that are perceived to be unjust.

Tan Kin Lian

Population woes

I am surprised that PM Lee was not aware of the seriousness of the population woes. It has been getting from bad to worse over 25 years. The measures adopted during the previous Prime Minister and during his time did not work, but they refused to see the flaws in their policies.
http://singaporedesk.blogspot.sg/2012/11/no-country-for-old-men.html

Singapore shares, 23 Nov 2012

Here are the blue chips and REITS in Singapore, sorted by dividend yield.
http://tankinlian.com/admin/file.aspx?id=707&IID=711

The authority has a duty to perform

Some people have argued that the public should be alert and be careful of being cheated by crooks. We should not expect the Government to be able to stop all the crooks from operating.

I agree with this reasoning, up to a point. If  a crook has been going around to cheat people and and complaints have been lodged to the "authority", it is the DUTY of the "authority" to take pro-active measures to stop the crooks from continuing their operations, especially as their identity is already known. It is NOT ACCEPTABLE for the "authority" to sit by, do nothing and let other people be cheated by the same crooks.

There are so many cases where complaints were lodged, and the crooks were allowed to continue their operations for a few more years. In the process, more people were cheated.

I do not understand why some people want to speak on give excuses on behalf of the "authority" which is neglecting its duty.

SIA website

I booked for a ticket to go to KL on 4 Dec. The website keeps changing my departure date to 5 Dec. Fortunately, I spotted this mistake and did not proceed with the booking. I tried again and got the same mistake.

I suspect that this could be a browser issue and changed from Chrome to Internet Explorer. This time, it got the correct date. When I proceeded, it showed "Processing request" and continued there for a long time. The website probably hang.

I know that SIA website had been giving trouble a few months ago. I am surprised that they have still not resolved this issue after a long time. I sent my feedback to the had of the call center in Singapore Airlines.

Beware of another investment scam

Mr Low (not his real name) made an investment with an asset management company X with an office in Bencoolen Street. They promised him monthly dividend payments but the payment stopped after two months. He did not receive the payment due for the past three months.

The representative of X told him that the investee company in Kazakhstan was taken over by another company and had stopped making the payment. He refused to respond to further questions from Mr Low.

Mr Low told me that he came to know of X because they offered to buy over his time share investment of $28,000, provided he put in another sum into X to make a total investment of $60,000. 

This sounds like another investment scam. I checked the MAS Investor Alert List and found that the company was not listed there.

Fair dealing outcome

MAS encourages financial institutions to make a corporate statement about their goal to achieve "fair dealing outcomes" for their customers. Here is an example of a statement issued by Citibank,
http://www.ipb.citibank.com.sg/global_docs/pdf/fairdealings.pdf

Educate our children

There is a big difference in the approach towards education adopted by several countries and Singapore. Which system do you prefer?

http://www.tremeritus.com/2012/11/26/difference-between-finnish-education-system-and-ours/

PM Lee and Singapore

PM Lee said that it is not easy to get another group to make Singapore work.
http://www.tremeritus.com/2012/11/25/pm-lee-not-easy-to-put-together-another-group-to-make-sg-work/

The Government is made up of idiots

If you make this statement, you will not be sued.
http://www.tremeritus.com/2012/11/25/govt-wont-sue-you-if-you-say-it-is-made-up-of-idiots/

Negative aspect of Singapore system

This person wrote about the negative aspect of the Singapore system - where people in "the authority" neglect their duty and push responsibility from one agency to another. The root cause of the problem is not solved. http://www.tremeritus.com/2012/11/24/i-have-enough-of-singapore-system/

I agree with his views and have experienced this bad environment. The Government needs to "wake up", recognize this problem and find a solution. It is their duty. If they cannot carry out their duty, they should step down from the government.

PAP counter-insurgency strategy

Seah Cheang Nee wrote about the PAP counter-insurgency strategy in cyberspace. I have experienced this activity in my blog and Facebook. Several of the members of this group have been making attacks on me in a dishonest way. They just want to provide their propaganda, to argue for the sake of argument, rather than engage in an honest discussion.

http://www.tremeritus.com/2012/11/24/pap%E2%80%99s-quiet-counter-insurgency-in-the-cyberspace-front/

Presidential Election 2005

Read Siew Kum Hong's comments about the lack of contest in the Presidential Election 2005
http://mindbloggingstuff.blogspot.sg/2004/07/lee-kuan-yew-that-very-few.html

I want to post his article because many people did not realize that the 2011 election could also have been a walkover, if I did not enter the contest. My friend urged me to stand as a candidate, so that there would be a contest, and not another walkover. This was one key reason for me to stand in the election.

Get Value from your Life Insurance

A new insurance portal likes my book on Life Insurance. They bought 100 copies to give to their customers. There are many examples in the book about what are good and bad insurance products.
http://easyapps.sg/ishop2/ProductInfo.aspx?id=35

The portal is also keen to distribute a PDF copy of my book and are willing to pay me a royalty (to be discussed).

The book can be ordered here:
www.tankinlian.com/ishop

Those who are too lazy to find out are destined by lose a few ten thousand dollars, or more, on bad insurance products.

Guarantee to IMF - Appeal by Kenneth Jeyaretnam

Kenneth Jeyaretnam has filed the appeal. Here is his statement.

http://sonofadud.com/2012/11/22/press-release-on-the-possibility-of-an-appeal-of-the-imf-loan-judgement/

Beware of financial traps

Most consumers are not aware that an investment linked policy or an universal life policy can be a financial trap. Beware!
http://tankinlian.com/Admin/File.aspx?ID=703&Frame=1

Moon represents my heart (4 languages)

Here are the lyrics of the popular Chinese song "The moon represents my heart" sung in four languages
http://tankinlian.com/Admin/File.aspx?ID=540&Frame=1

And here is the video of this song, http://www.youtube.com/watch?v=NwF7mShS0po

Letter sent on Government Service

I receive letter sent "On Government Service" without any postage. Does this mean that Singapore Post, which is now a privatised body, is delivering the letters free, or does it charge the Government for the mail delivered at a bulk special rate?

Government policy and private sector

The Government tendered the land for Executive Condo development to the private sector, because they do not want to deal with the demands of the citizens. They prefer to let the private sector deal with the conflicting demands. This does not seem to work, because the problem does come back to the Government in another form. Read this:
http://www.todayonline.com/Singapore/EDC121123-0000123/Khaw-reminds-developers-to-exercise-flexibility-within-spirit-of-EC-policy

I prefer the Government to deal with the policy issues directly, rather than pass these issues to the private sector. This approach seems to produce quite conflicting results.

Vivo Life Policy

Here is an analysis of the Vivo Life policy, based on the start of the policy and after two years (for a policyholder who wishes to know if he should continue or terminate the policy).
http://tankinlian.com/admin/file.aspx?id=704&IID=708

Transparency and interpretation of policy conditions

An insurance company is advertising about the transparency of their insurance policies. While this is commendable, consumers should be aware that there are other important matters that need to be considered, such as interpretation of policy conditions and exclusions.
http://tankinlian.com/admin/file.aspx?id=697&IID=701

A company's reputation in honoring claims and treating customers fairly is probably more important than the transparency of their policy wordings.

Beware of financial traps

A successful entrepreneur, who had made a lot of money, asked for my advice about a universal life policy that was recommended to him. He had to put in $1 million in savings to get $5 million of insurance protection for his family. I told him to send the benefit illustration for me to take a look but advised him to be cautious, as there is a trap waiting for him.

I recall a case, described in my book "Get Value from Your Life Insurance" where the customer was not aware about the trap in a universal life policy (see case #16 in my book). The book is available at www.tankinlian.com/ishop

High income earners should also be aware of another trap in an investment-linked product that was designed to hide the high charges, until it became too late, causing the customer to lose $50,000.
http://tankinlian.com/admin/file.aspx?id=703&IID=707

A sensible advice on coping with high medical bills

I told an American friend, who had lived in Singapore for many years, that many elderly people are concerned about the high cost of health care in Singapore and had approached me to find out the "best medical plan" to cover their risk. I told my friend about the advice that I gave to the elderly. When he heard it, he remarked, "This is very sensible and yet many people do not realize it. It is nice for you to put it in simple terms." Here is my "sensible advice". http://tankinlian.com/Admin/File.aspx?ID=698&Frame=1

Threat of legal action

Is it really necessary for a Government Minister to get a lawyer to write to the websites over a mistake of fact, when an assistant could have pointed out the correct facts to the webmasters?
http://www.tremeritus.com/2012/11/22/two-websites-apologise-to-defence-minister-ng-eng-hen/

This type of heavy handed approach, while instilling fear, will cause the Government to lose the respect of the citizens.

Check on billing arrangement first

Dear Mr. Tan

My girlfriend was admitted to Raffles Hospital to do a MRI and subsequently remove a ostheoma from her forehead that was causing sharp pains and tension headaches. We went to Raffles Hospital because we wanted to have a second opinion after seeing a neurologist at TTSH that suggested my girlfriend be put on long-term pain medication which, in my opinion, does not solve the root cause of the problem and might in fact cause more problems in the future.

My gilrfriend is covered under Prudential's PruShield Premier Plus plan  with the Shield Extra rider that covers all deductables and co-insurance. As a former Financial Planner, I have always presumed that the difference between going to Government Re-structured Hospitals and Private Hospitals, with MediShield cover, is the payment of deposits during admission (i.e no need for deposit at Re-Structred Hospitals), and the rest of the bill will be billed directly to the insurer.

So imagine my shock when we were preparing for discharge from the hospital and the billing department informed us that we would have to clear the bill of $9606 (after $1250 has been deducted from her Medisave for deposit) before she can be discharged! According to Raffles Hospital, they will collect full payment from us before submitting a claim to Prudential, and only when Prudential has disbursed the claim will Raffles Hospital reimburse the amount back to us.

Luckily I was able to get a loan in the short time to cover the bill or I dread to imagine the consequencces. Now it got me thinking, what about others that might have been caught out in a similar situation but was unable to raise the amount needed? Is there a possibility of a standard practise across all hospitals regardless of Re-Structured or Private in cases where the patient is covered under a Shield Plan? As it stands now, the difference in practises between hospitals is extremely myriad and confusing even to active Financial Planners selling Shield Plans, let alone the layman.

I would love to hear your insight on this issue and what are possible ways for Insurers and Hospitals to work closer together to make seeking treatment less daunting than it already is in Singapore. 

REPLY
It is better to check with the hospital on their billing arrangement, prior to admission.

Wrong classification of hospital claim

The policyholder was shocked that the private Shield plan paid out only $150 from a hospital bill of $6,200 in a subsidized B2 ward. This was due to a wrong classification of a large item called consumables, and the insurer did not notice it. Fortunately, a friend helped the patient to get a larger payout
http://tankinlian.com/admin/file.aspx?id=702&IID=706

Inconsiderate customer survey

I received many requests to participate in customer survey that were created by inconsiderate people. They ask 100 or more questions, but do not tell you in advance. You have to go through several webpages before you find out.

Recently, Paypal invited me to do their customer service survey. I replied to the e-mail asking someone to reply to me, to confirm that there is a person who monitors the replies. They did. I followed up with this e-mail:

QUOTE: Can you tell me how many questions are in the questionnaire?I have been invited to answer questions that show me, one page at a time, and goes on for more than 100 questions.
I did not know after going through 5 pages, that there are many more pages to go. UNQUOTE

Instead of replying to my question, Paypal got someone to call me by telephone. He started with this message, "Before we continue, I like to tell you that this call is recorded for training purpose, etc ... "

I replied, "This is rubbish" and put down the telephone. I hope that this message goes to the survey companies. They have to understand that they are wasting customer's time with their methods and damaging the goodwill of their clients.

Make it easier for people to live closer to workplace

17 November 2012

Editor, Forum Page

Straits Times

The Strategic Planning Director of the Urban Redevelopment Authority said that

more commercial and industrial hubs will be developed out side of the Central 

Business District to provide more jobs "closer to the homes" and to "reduce traffic

congestion" ("Commercial nodes distributed islandwide, ST 17 Nov 2012).

I suggest that a more holistic approach be taken to deal with the challenges 

of accommodating a larger population within a small island. Apart from 

providing jobs closer to the homes, we should make it possible for people to 

live closer to their workplace, so as to reduce time and expenses

of commuting.

For decades, the government policy was to encourage people to own their 

homes. After investing in their homes, many people have to commute long distance

to their workplace. This adds to the congestion on our public transport and roads.

Why not make it easier for people to rent their homes, by making more rental homes

available and reduce the fiscal disincentives towards renting? It will be easier for the tenants  

to move their homes closer to their workplace on the expiry of the lease. 

We can look at the example of Switzerland, where a high proportion of their citizens rent, 

rather then own, their homes.

For those who have already bought their homes, we can make it easier for them to sell their

homes and buy a new home closer to their workplace, by waiving the stamp duty and 

reducing the cost of legal and other cost of transaction.  

While this may not suit all families, some families who find this approach to be workable. We need 

various measures to work together to solve the problem holistically.

Tan Kin Lian

Stem cell therapy

This video explains how stem cell therapy is used to reverse the aging process and improve your health. It is a marketing video by a company that sells a product called Purtier. I find the video to be quite educational, but it is rather long (more than 1 hour).
http://www.youtube.com/watch?v=kNSVOLMcql0&feature=related

This product, which is sold through multi-level marketing, is probably quite expensive. If you have personal experience on the use of this product (either positive or negative), share your views here
https://docs.google.com/spreadsheet/viewform?fromEmail=true&formkey=dFNmcUxWVzhEU2VyREZqTHAzRDlzdUE6MQ

Misleading statements

Here are some statements made by some life insurance agents to convince their clients to buy their expensive insurance policies that give a poor return. Have you been misled by these statements?
http://tankinlian.com/admin/file.aspx?id=170&IID=430

IMF Pledge

I have made a donation to the fund for Kenneth Jeyaretnam to take up the issue of the IMF Pledge. He is doing it on behalf of all Singaporeans and deserve our support. Please donate generously.
http://sonofadud.com/2012/11/12/statement-on-the-imf-loan-judgement/

Kenneth Jeyaretnam made a good summary of my views on this matter.
http://sonofadud.com/2012/11/19/1131/

Review the underwriting requirements for Medishield

NOT PUBLISHED BY TODAY PAPER

14 November 2012

Editor, Voices

Today Paper

I support that approach by the Ministry of Health in 

encouraging the uninsured people, especially the elderly, to apply

for coverage under Medishield (Today, 14 November).

The main obstacles faced by these uninsured people is passing the

underwriting requirements for acceptance under the Medishield scheme.

Many of the elderly people do have some chronic conditions or

other ailments that bar them from getting the cover. We cannot expect them 

to be in the same state of good health as young people.

I suggest that the Ministry of Health should have a moratorium on 

their current underwriting requirements for a period of six months 

to allow the uninsured to join the scheme. During this moratorium, they 

can be accepted without any medical examination or health

declaration.

It would be acceptable to exclude any claims for a period of three or six months 

from the date of joining. After the "waiting period", they should be allowed

to get the full benefit of the insurance.

As the elderly people are already paying a higher premium, compared to 

young people, the higher incidence of claims should not have any 

significant adverse impact on the insurance pool. 

I hope that the Ministry of Health can consult the insurance practitioners, 

especially those that do not have any vested interest, to find out the right 

approach to this challenge.

Tan Kin Lian

Mistaken about the yield

Mr. X posted in my Facebook that he is happy with his Manulife policy that gave him a return of 6% p.a. On my request, he sent the details to me. I checked the calculations and found that he was mistaken. Here is my reply.

You are paying $376.64 in annual premium each year on this policy. The surrender value, at the end of 20 years, including the bonus, is $8,434. The yield for the 20 year period is 1.06% p.a. It is a poor yield. It can hardly keep up with the rate of inflation over this period.
Although the insurance policy does provide some life insurance protection, the cost of this protection is extremely small.
Most life insurance policies offer a yield of 2% to 3% p.a. and is still considered to be a poor yield. In my talk on insurance, I advised that the benchmark for a good yield is 4% p.a. on a life insurance policy.

Choosing a good life insurance policy

Choosing a good life insurance policy is the same as choosing a good consumer product. Shop around. Compare prices, Take your time. Do not make a hasty decision. Be clear about what you want and make sure you pay the right price. Do not take the trust the statements of the sales person blindly (as they want to close the sale and earn the commission).
http://tankinlian.com/admin/file.aspx?id=701&IID=705

Helping small entrepreneurs

This article is well written and convey correctly, the problems faced by small entrepreneurs in Singapore.
http://www.tremeritus.com/2012/11/18/the-establishment-should-stop-saying-that-theyre-helping-local-entrepreneurs/

Half truths about life insurance

The insurance agent makes a lot of money by selling investment-linked policies using half truths. What are these half-truths? You hear them from your agent and they sound convincing. But, if you are discerning, you can see the flaw in these half truths.

Read this article and avoid being conned. http://tankinlian.com/Admin/File.aspx?ID=170&Frame=1

I want to clarify that there are many insurance agents who show concern for their clients, and offer products that are suitable for the clients. Some of them are helping me in Financial Services Consumer Association (FISCA) and provide advice for a modest fee (say $100 per hour).

Some of the agents selling the "bad products" are newly trained agents, and are not personally aware that these products are bad for consumers. They are trained by their agency managers to sell the benefits, but they did not realize that these are "half truths".

They sell these "benefits" to their family members, classmates and friends, without realizing that they are locking them in a bad investment that will make them poor, while giving big profits to their insurance managers and big income to their agency managers!

Listed property firm in Germany

Will you invest in this listed property firm in Germany? There are many risks that you may be unaware of. Do not just believe the statements from the marketing agent; you have to verify them from independent sources.
http://tankinlian.com/admin/file.aspx?id=700&IID=704

Giving up power

I give full respect to President Hu Jiantao for being willing to give up full power and make it easy for the new leader to take charge.
http://www.todayonline.com/World/China/EDC121117-0000097/Chinas-Xi-praises-Hu-for-voluntarily-giving-up-power

Desire for a happy life

Here are excerpts of the speech from the new leader of China. Pay special attention to the following statement, 

"Our people have an ardent love for life. They wish to have better education, more stable jobs, more income, greater social security, better medical and health care, improved housing conditions, and a better environment.

They want their children to have sound growth, have good jobs and lead a more enjoyable life. To meet their desire for a happy life is our mission."

Our Singapore leaders can pay attention to this goal as well - not just in hollow words, but in true belief.

http://www.todayonline.com/World/EDC121117-0000018/Xi-Jinping-wins-over-Chinese-online-community

Unjustified voiding of motor policy

While driving in Malaysia in 2007, Mrs Lee’s car churned out black smoke at the engine bay. She stopped at a motor workshop and was advised to replace the extractor. She was assured that many cars from Singapore had made similar replacements at the workshop and they did not have any problem.

She agreed to the replacement of the extractor and was able to pass the annual vehicle inspection test, required by the Land Transport Authority, for the next four years.

In August 2012, she gave permission to her 32 year old son to drive the car. The son hit the rear of another vehicle. After lodging the accident report, Mrs Lee’s insurer discovered the replaced extractor and voided the insurance cover on the grounds that it was an unauthorized replacement. Mrs Lee was previously insured with another insurance company and had changed to the new insurer in June 2012.

The insurer rejected the repair of Mrs Lee’s car and also repudiated liability for the claim from the third party, which amounted to $9,500.

I found the voiding of the policy to be unjustified as the repair was carried out by a proper workshop in Malaysia and was necessitated due to a problem with the engine at that time. Furthermore, it had passed the vehicle inspection test conducted under the Land Transport Authority rules for the following four years.

It seemed to be quite common for an insurer to repudiate liability on questionable grounds, leaving the motorist in a difficult position.

Improve information on bus services

14 November 2012

Editor, Forum Page

Straits Times

Mr. Noel Low said that the tinted windows in buses make it difficult for

commuters to ascertain their locations on overcast days and at night

(Problems posed by tinted bus windows, ST 14 Nov).

I agree with his suggestions that the bus should contain a digital 

display to show the location of the next stop. I saw this system in the

buses in London.

My friend told me that the buses in Hong Kong and Shenzhen have the

display in English and Chinese and also the sequential stop number. They

also provided free Wi-fi service!

With the GPS system already installed in the buses for the fare system, it

should be easy to incorporate the software to provide this digital display at a

minimal cost. 

Another useful service is to provide the bus arrival time at each bus stop. This

can access the data on the locations of the all buses, that are now captured 

for the fare collection. 

I hope that the Land Transport Authority can install a tablet at each bus

stop to display the bus arrival times.

We need to improve our the use of our bus services to complement the

trains that are now over-crowded. This will encourage more people to take 

buses, and relieve the congestion on our trains and roads.

Tan Kin Lian