Hit the car in front

Mr. X allowed his car to move forward at a traffic stop and hit the car in front. The two drivers agreed not to make any claim as the damage was small.

A few months later, Mr. X received a letter asking for payment to the damage. The other car was a rented car and the rental company decided to file a claim.

Mr. X approached his own insurer and was shocked to learn that they deny liability due to failure by Mr. X to report the accident.

Mr. X approached me for advice.

Find the answer here:
http://www.fisca.sg/ArticleDisplay.aspx?ID=597&Name=Private-settlement-for-car-accident&Type=A&Category=&Keyword=

Sensible views

I welcome sensible views contributed by followers of my Facebook page or blog. They may agree or disagree with my views. Both types are welcomed.

I do not welcome the following types of views:

a) Posted by people for the purpose of attacking or insuling me. Some of these people are paid to do so.

b) Posted by critics who pass a judgment that my views are wrong. Why are they so arrogant in thinking that their views are right?

I delete these views. I do not care if they post their views elsewhere, but if they wish to express their views in my Facebook page, they have to be respectful.

I welcome the many helpful comments that are posted here, including those views that give me a different perspective.

SDP has a sensible alternative to the HDB issue

HDB owners are shocked to learn that the value of their flat, which they have paid a enormous price, will fall rapidly after a certain age and will eventually be nil on expiry of their lease.

PM Lee has announced the voluntary enbloc redevelopment scheme (VERS) and a 2nd round of upgrading (HIP) during its tenure. It does not address the underlying problem. The flat will have no value on expiry of the lease. The problem is that the owner paid a high price of the flat.

SDP (Singapore Democratic Party) has proposed a solution to this problem a few years ago. It is a sensible solution.

SDP proposed that a new class of flat, called the NOM (non open market value) flat be sold based on cost. Existing owners who have bought their flat at a high price can opt to convert their flat to NOM and get a refund of the difference.

It is a good approach. It shows that there are intelligent people outside of the establishment who can provide better alternatives.

You can read more detail here:
https://yoursdp.org/publ/sdp_39_s_alternatives/housing/32

WOTC - Future of Singapore

I asked this question in the Wisdom of the Crowd:

What is best for the future of Singapore?

Here are the responses: (59 Votes)

41 % - A non-PAP government to change the future direction.
32 % - A non-PAP government to transform the concentration of power.
24 % - A PAP government with more opposition in Parliament to debate policies.
3 % - A continuing PAP government to provide stability and growth.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=836

WOTC - Pricing of HDB flats

I asked this question in the Wisdom of the Crowd:

What should be the pricing policy for HDB flats?

Here are the responses: (61 Votes)

49 % - A new class of flats should be offered at lower prices with restriction on resale.
33 % - New flats should be priced lower.
13 % - New flats should be priced at current levels to protect the value of old flats.
5 % - New flats should continue to increase with inflation.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=835

WOTC - Preserve value of HDB flat

I asked this question in the Wisdom of the Crowd:

How can the value of HDB flats be preserved?

Here are the responses: (58 Votes)

67 % - Allow expiry lease to be renewed at a nominal fee.
14 % - Allow CPF to be used for flats over 30 years old.
10 % - HDB to contribute to upgrading.
9 % - Allow foreigners to buy old HDB flats.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=834

Wonderful customer service experience

I just had a wonderful experience of the customer service provided by a website called Free Logo Service.

I used this website to create a logo. They provided a domain free for one year. I did not use the domain as the project was abandoned.

They auto-renewed the domain and charged me for its fee. I submitted an online form to cancel the domain.

I received an email reply asking for a few essential information to identify the domain and the last four digit of my credit card for verification.

They cancelled the renewal and refunded the fee to me.

This exchange was completed within one hour and is done entirely by email.

Singapore Experience
I now share my experience with government agencies and big companies in Singapore.

a) Difficult to locate their website and online feedback form.
b) Difficult to submit their online form as they ask for non-essential information that are not available and have a troublesome captcha process.
c) They promise to reply within four working days. Often I do not get the reply.
d) Some agencies do not reply by email by expect me to get my reply by logging into their website.

I have still not received any acknowledgement or reply to my two feedback to the Corp Pass website after a few days.

We need our Singapore organizations to simplify their process for their customers.

Tan Kin Lian

Buy a property to stay

There are two reasons for foreigners to buy a property in Malaysia:

1) As an investment - to make a capital gain and get a good return.

2) As a place to stay for retirement or for children to study.

Most Singaporeans look at the purchase as an investment. It will be a disappointment. The property will yield a poor return, maybe negative. It will also be difficult to get a capital gain.

There is a big over supply of property in the major cities all over Malaysia.

But some people buy it as a place to stay. Many investors from China buy Forest City for this reason.

They want a home in a warm climate to stay during their holidays or for retirement or for their children to stay for their studies.

Some retirees from Singapore have moved to stay in Malaysia, especially Iskandar, for the long cost of living.

Rely on a professional army

Singapore has 25,000 full time soldiers and 45,000 active conscripts.

If we move to a professional army, we probably need 40,000 full time soldiers to man the weapons and systems and to train the conscripts.

This is just my guess - I do not have any information to give a reliable figure.

We can still have compulsory military service, but the conscripts need only to serve 4 months to receive basic military training.

In the event of hostility, we can get the conscripts below 35 years to return for intensive refresher training. We can mobilize 350,000 people and re-train them over a period of a few months.

I believe that this structure will better achieve the goal of having an adequate defense for the nation and reduce the heavy burden of time and opportunity placed on our local born male citizens.

WOTC - Choose your MP

I asked this question in the Wisdom of the Crowd:
Which person will you vote for as your Member of Parliament?

Here are the responses: (84 Votes)
48 % - An older candidate who is retired and does not need the income and wish to serve you.
35 % - A young candidate who promise to serve you as a full time MP
14 % - The candidate from Worker Party
4 % - The candidate from PAP

See the pie chart at:
http://www.wisdomofthecrowd.sg/chart.aspx?ID=831

WOTC - Choose your MP

I asked this question in the Wisdom of the Crowd:
Which is most important when you choose your MP?

Here are the responses: (76 Votes)
51 % - A non PAP candidate, to effect change.
36 % - The personal quality and background of the candidate.
8 % - The platform of the party.
4 % - The party that fields the candidate.
1 % - A PAP candidate to ensure continuity.

See the pie chart at:
http://www.wisdomofthecrowd.sg/chart.aspx?ID=832

WOTC - Taking the bus

I asked this question in the Wisdom of the Crowd:
Do you take buses?

Here are the responses: (86 Votes)
37 % - Often, mainly to MRT stations
28 % - Daily, direct to my destination and home
24 % - I hardly take the bus.
10 % - I prefer to drive or take taxi

See the pie chart at:
http://www.wisdomofthecrowd.sg/chart.aspx?ID=833

Recent developments in Forest City

A few people have asked for my views on the latest development in Forest City.

I agree with the views expressed by Dr. Mahathir - Forest City should benefit Malaysia and Malaysians.

He wants to see more of the construction work and professional services provided by Malaysian companies. He wants the development to create more jobs for Malaysians. He also wants more of the apartments to be affordable to Malaysians.

I agree with these goals.

I believe that the developer of Forest City also agrees with these goals. They are already creating more work and jobs for Malaysians.

However, the approach taken by Dr. Mahathir may cause a loss of investor confidence in Malaysia. This is a real risk that he has to deal with.

It would be bad not only for Forest City but also for other Malaysian properties and industrial and commercial developments.

I do not think that Dr. Mahathir will want to see Forest City fail or to see a loss of investor confidence in Malaysia.

Someone told me that the Johor sultan and the state government had a 30% stake in Forest City. I do not know if it is as high as 30%.

The people who have bought properties in Forest City may be worried about the value of their investment.

As an investor

I have bought an apartment in Forest City but I am not worried. Here are my reasons:

a) Forest City builds the apartments based on completed sales. They pre-sell the apartments and when it has been fully or substantially sold, they start construction. They will not have many unsold blocks of apartments or landed properties.

b) The original plan was to construct 4 islands to house 700,000 people. If there is insufficient demand, they can scale down their development or take a longer time to complete it.

The developer has already announced that this would be their plan. If they stop work with the first island, it will still be a substantial development.

c) Would the first island be a ghost town, i.e. the apartments have been sold but are not occupied? It might be the case.

But with the proximity to Singapore, and the possibility of ease of travel through the checkpoints, I see more people living in Forest City or in Iskandar and working in Singapore.

d) I am investing in my Forest City apartment for the long term, using my spare cash.

In 20 years time, Dr. Mahathir would be 113 years old (if he is still around). I would be 90 years old (if I am still around). My grandchildren will probably inherit the apartment - and it is freehold in tenure.

e) The recent annual report from Country Garden showed a healthy profit. They are financially sound.

Global Financial Crisis

Let me share this story. In 2009, a friend told me that she had taken my advice earlier and had invested in the STI exchange traded fund. She had lost 30% of her investment due to the global financial crisis.

I told her to see me in 20 years time to discuss her investment. A year later, she told me that she had recovered her 30% loss and the investment was showing a 30% profit.

This is called "investing for the long term". One should not be worried about short term issues. They will be sorted out.

I will tell the same story to investors in Forest City. Let us discuss it in 20 years time.

Tan Kin Lian

The fallacy of low income tax rates

The government reduced income tax and introduced GST two decades ago with the aim of attracting high income earners to come to Singapore.

The aim was to tax revenue from these super rich immigrants, although at a low rate of tax. It is better than getting nothing from them.

It did not happen. Why?

Most of the income of these super rich immigrants were overseas income and were exempted from income tax.

So, we are the winners and losers in this tax regime?

The winners are the high income earners - lawyers, doctors, bankers, property developers, corporate executives, politicians - who earn several million in income from local sources, and pay a low rate of income tax.

There is virtually no risk that high income rates will get these high earners to leave Singapore. They cannot run away because their income are from local sources. They cannot earn these income in other countries.

The losers are clearly the ordinary people who have to shoulder a large burden of the tax through GST.

A high income tax rate will allow GST to be removed and will reduce the cost of living. It will help to reduce the high level of inequality in Singapore.

Struggle to make a living

I made a statement that 10% are doing well and that 90% are struggling. I also said that Singapore should avoid getting into this position.

Someone challenged me to look at the National Statistics to prove that 90% are struggling. He estimated that only 20% are struggling.

It is a matter of definition. Although 70% appear to be getting by, according to his estimation, I would consider that a large proportion of them are struggling for the following reasons:

a) They are not saving enough for their retirement.
b) They are afraid to get married or have children because they find the cost to be too high.
c) They work long hours and on two jobs to meet ends meet.
d) They are afraid of losing their jobs.

Of course, they would not be struggling if they have been more modest in their spending or did not commit to expensive property purchases. To borrow the words of our ministers ... if they had been more frugal and live within their means.

I once asked a Russian woman - was Russia better in the old days under the communists or in the free market economy today?

She preferred the old days. Why? The cost of living was low and, while people had fewer luxuries, they felt secure.

I am not suggesting that we adopt communism, but I quote this story to show that there is another angle that need to be considered.

I leave you to judge - are many people struggling to make a living in Singapore? Do they feel secure?

High property prices

I made a statement that Singapore is exposed to the danger of depending on high property prices. If there is a serious correction, Singapore will be badly affected.

Someone challenged me to look at the National Statistics to look at the proportion that is contributed by property. He said that we have a highly diversified economy and does not have a high reliance on property.

I believe that the National Statistics may not record the correct picture.

Here are my reasons:

a) A large part of the profit of financial institutions can be attributed to high property prices and transactions.

b) A large part of the wealth of Singaporeans are linked to property. They can borrow against their high property prices for spending and for financing businesses. I have seen many small businesses close shop with large losses, but their owners appear to be financially sound, due to wealth in properties.

If property prices were to fall, the domino effect will be quite bad. We have seen it in Japan.

At present, property prices in many countries are being supported by very low interest rate and that has been going on for at least one decade. The situation will be quite different when interest rate goes up to much higher level at some time in the future.  However, the correction does seem to take a long time to happen.

Streaming under the German education system

A German woman, who had lived in Singapore for three decades, told me.

They have streaming under the German education system. The students were streamed to the academic field or the vocational field. The students in the academic stream go to university while the vocational stream go for apprenticeship.

The teachers assess the students and decide which stream they are more suitable for. This assessment is made over several years.

The advantage of the German system is that the earnings between the academic and the vocational fields are quite close to each other. There is no wide salary gap.

I don't know if this description is correct. But I generally respect the Germans for their approach towards the education of their people.

Streaming at upper secondary level

When I was in secondary school, there was streaming. In secondary 3, we were streamed into science or arts stream. We took different subjects.

Some other secondary schools have the technical stream.

The streaming was accepted at upper secondary. There was no controversy.

The streaming adopted by the government in the late 1980s applied to PSLE (primary six). It was a bad idea to stream that so early. Worse - there was a stigma between normal and express streams.

It would be better to get rid of the streaming in PSLE and revert to the old system - where the students are streamed at upper secondary.

Agree?

An alternative to streaming in education

The government introduced streaming of students in the 1980s. It has continued to today, although the system was adjusted a few times during the following years.

The concept of streaming was to put students in the appropriate system that suits their learning ability.

The students who can learn better are placed in the express stream while those who are slower are placed in the normal stream.

This system produced stress among the students as they and their parents do not want to be stigmatized by being placed in the normal stream.

When I was in school, there was another type of streaming system which seemed to work better.

The students who did badly in the year end examination were held back by one year. They repeat the syllabus. A small number was held back but most of the rest advanced to the following year.

Few people paid any attention to the fact that they were held back.

There was nothing to be ashamed of being held back. In each year, the difference in age among the students could be up to one year, i.e. those born in December could be 11 months younger than those born in January.

If the younger child did poorly because of age, they are hold back by one year. The difference in age with the students in the following year could be just a few months.

There will be instances where the age gap is wider, but it did not really matter. There were in the same class, and followed the same syllabus.

The old system of holding back a student who did poorly in the year end examination was better than the streaming that was introduced in Singapore.

Do you agree?

WOTC - Means testing

I asked this question in the Wisdom of the Crowd:

Should we have the same means testing criteria for all types of benefits?

Here are the responses: (78 Votes)

40 % - It is better to provide the same benefit to all citizens without means testing and make the higher income pay more income tax.
27 % - We should adopt different means testing for different benefits.
18 % - Yes, the same criteria should be applied and the eligibility should be assessed yearly.
15 % - Means testing is degrading to the recipients.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=829

WOTC - Means testing

I asked this question in the Wisdom of the Crowd:

Should we continue with means testing?

Here are the responses: (77 Votes)

40 % - No, we should provide the same benefit to every person regardless of income. 
26 % - Yes, but it should only be based on personal income and residential housing.
25 % - Yes, it should be based on family income.
9 % - Yes, it should be based on residential housing.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=828

WOTC - Adequate pension

I asked this question in the Wisdom of the Crowd:

How much is an adequate pension for people above 75 years

Here are the responses: (97 Votes)

35 % - $1,500 a month
31 % - $1200 a month
22 % - $800 a month
11 % - $500 a month 
1 % - $300 a month

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=827

New design for drains and utilities

I suggest that the ministry of national development consider this approach to provide drainage and laying of cables and water pipes.

1) Design a drain that can carry away drain water and have three compartments for running electricity cables, telecom cables and water pipes. The cables and pipes are located above the normal flow of water. The cover for the drains will be solar panels.

2) Use prefab technology to build these drain sections.

3) Replace the side walks of the roads with these covered drains and include the cables and pipes.

4) New buildings and additional supplies will tap into the new cables. No more digging up of roads.

Does this sound like a good idea?

Time to in-source they key operations

We are used to outsourcing that we do not realize its disadvantages. It took a visionary business leader to try the opposite approach.

When Genting Group wanted to build the $1 billion cruise ship Genting Dream, the CEO decided to buy the to buy the German shipyard.

This in-sourcing approach allowed him to have direct control over the design of the ship. He does not have to pay expensive variation charges. He does not have to worry about quality control - he has direct access to the detailed statistics.

He took over all the staff of the shipyard and have direct control over them. He saved the cost of contract management at the top level, although his management still has to handle the management of the sub contractors.

It is quite common among the government agencies to outsource their responsibility and to let the main contractor take over this task. It will end up with a higher bill and questionable quality.

It is time to re-think of what can be outsourced and what has to be in-sourced.

Simulation of general election 2020

Here are five factors that may affect the swing against the PAP at general election 2020.

Coalition under Dr. Tan Cheng Bock
Increase in electricity and water charges
Fall of Barisan Nasional in Malaysia
GST increased to 9%
Govt raise public transport fare

The percentage swing are decided by about 100 people who voted.

How will these factors affect the PAP?

You can find out here:
http://tklcloud.com/Election/const2.aspx?id=1539

You can select your own factors and run a separate simulation to see the results.
http://tklcloud.com/Election/const.aspx

CPF minimum sum

If we allow CPF to be fully withdrawn at age 55, there is a risk that many people will take out their savings and lose it on bad investments or in setting up a business.

How can we manage this risk?

The government decided three decades ago to require people to set aside a minimum sum for their retirement. But this minimum sum has been raised to an excessive high sum.


Would it be acceptable if the minimum sum is reduced to, say $60,000? I remembered that the minimum sum was $30,000 when it started in the late 1980s.

We also have many complicated rules on the sale of a property. The proceeds have to be returned to CPF and used to set aside the minimum sum before the balance can be withdrawn.

There is no need to have this complicated rule because the CPF savings that went into the special account could not be used to buy a property. It should be sufficient to cover the minimum sum needed for retirement.

Would a reduced CPF minimum sum, to be withdrawn in installments, be a suitable compromise between the need for an income during retirement and the access to the balance of the CPF moneys at age 55?

I wonder!

WOTC - Take care of rental flats

I asked this question in the Wisdom of the Crowd:

Will tenants take care of rental HDB flats?

Here are the responses: (82 Votes)

32 % - They have to take care of the rental flats as any repairs will be deducted from their deposits
29 % - They will not take care of the flats, as it does not belong to them.
22 % - They will care of the rental flats, if this is made a condition of the rental contract.
17 % - They will take the same care as owners, as they expect to live in the flats for a few years.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=826

WOTC - Housing price problem

I asked this question in the Wisdom of the Crowd:

How can the government solve the housing price problem?

Here are the responses: (83 Votes)

35 % - Allow more rental flats for young people to rent, and maintain the prices of new flats.
31 % - Build more HDB and private flats to increase the supply and reduce the prices
23 % - Maintain the prices of new HDB flats, to protect the investment of the old owners.
10 % - Sell new flats at reduced prices and let the old owners suffer the loss
1 % - Allow the HDB flats to continue to increase in price. 

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=825

KTM train to Johore Bahru

I took the KTM train to Johore Bahru two weeks ago.

My friend told me that this is the best way to avoid the heavy jam at the causeway. He was delayed by 3 hours on his previous trip.

The cost of the KTM trip was $5. It was rather steep, but we agreed to pay it to avoid the jam.

There was a train every 70 minutes, so it was necessary to check the schedule. We bought the ticket on the spot.

I was surprised that there were clearance from Singapore (exit) and Malaysia (entry) at the same building. It just require 1 minute of walking from one checkpoint to the next.

There was no queue. We went through the checkpoint immediately. The train was rather empty.

The journey was only 5 minutes. We arrived at the JB train station. There was no need to clear the checkpoint as we had already done it in Singapore.

It should be possible to have a train every 15 minutes, if there is demand. If the fare is reduced to $2, I am sure that many people will prefer to take the train to avoid the jam.

WOTC - SAF top brass

I asked this question in the Wisdom of the Crowd:

Is it advisable to rely on SAF top brass to run the country?

Here are the responses: (75 Votes)

56 % - They do not have experience in non-military matters.
40 % - The military approach is not suitable for a country.
1 % - They are capable of dealing with major issues.
1 % - They are good in people management.
1 % - We can rely on their loyalty to the country

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=824

WOTC - Scholars to lead the country

I asked this question in the Wisdom of the Crowd:

Is it advisable to rely on our scholars to lead the country?

Here are the responses: (82 Votes)

40 % - They tend to be self centered and selfish.
35 % - They cannot understand the lives of ordinary people.
18 % - They are elitist in their thinking.
6 % - They can balance intelligence with humility.
0 % - They are the most capable people in each cohort.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=823

Pick the "low lying fruits"

I adopt the strategy of "pick the low lying fruits".

These are projects that are easy to implement, not costly, and can produce significant results.

Here are two examples:

a) The two governments will spend a few hundred million dollars to build the MRT link to Johore Bahru. It will take 6 years to be ready.

The low lying fruit is to increase the capacity of the KTM Trebau Shuttle, linking Singapore to Johore, by 5 times. The trains will run at 15 minute intervals, rather than an average of 75 minutes. It can be implemented within a month and can cut down the jam on the causeway.

The train fare can be reduced to $2 to encourage more people to use it.

b) The Ministry of Health is building an electronic Health Record system. It will take many years and a few hundred million dollars to get it ready. The value of this system is questionable.

The low lying fruit is to build a system to store the drug alergies of each patient and the health checkup records. This system can be ready in a short time. It will use information that are already captured in existing systems. The doctors will find this information to be useful to give proper treatment to patients and to avoid unnecessary tests. They do not need to ask the patient for these information.

This approach of "picking the low lying fruits" can improve our productivity and reduce our cost. It is the way to go ... to be a Smart Nation.

Tan Kin Lian

Health information system

After the SingHealth database hack, the Ministry of Health is now delaying the implementation of the electronic health record (eHR) project. They are worried that the hackers can get access to the sensitive information.

I like to suggest this approach.

a) Create a simple system to allow the doctors to provide essential information about each patient.
b) The essential information are drug allergies and health checks.
c) Hospitals, polyclinics and medical laboratries can contribute to this system, with permission from the patients.
d) Private and public doctors and nurses can apply to have access to the system.
e) All access will be logged to ensure that unauthorised accessed can be traced.

Recently, I learned that the Health Promotion Board was maintaining a separate database of the health checkups. They rely on information provided by the patients. This is costly and unreliable. If the patients are not aware, there will be duplicate and unnecessary tests being carried out.

HDB Lease

Why do HDB owners have to pay property tax when they are not the owners but only the lessee?

Answer - it is a condition of the lease. When a lease has a tenure of more than 6 years, it is usual for the landlord to specify that the lessee has to pay the property tax, in addition to the rent.

The landlord wants to collect the rent and be protected against future increase in property tax.

In the case of the HDB flat, the lessee has to pay an upfront premium, instead of a monthly rent, for the 99 year lease.

The HDB lease is not the same as a leasehold on a private property, because it has some conditions tied to the use and resale of the property. Apart from these special conditions, it is similar to ownership of a leasehold of private property.

WOTC - PAP and votes

I asked this question in the Wisdom of the Crowd:

Which factor will cause PAP to lose most votes?

Here are the responses: (68 Votes)

63 % - Lack of transparency and arrogance.
18 % - Increase in GST
9 % - High minister's salary
7 % - Increase in water, electricity and transport fares.
3 % - More breakdown in MRT trains

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=822

WOTC - Key goal in education

I asked this question in the Wisdom of the Crowd:

What should be the key goal in education?

Here are the responses: (69 Votes)

35 % - Educate the child and give them time to enjoy their childhood.
33 % - Ensure that every child can read, write and have a good character.
28 % - Prepare the child to survive in a competitive world.
4 % - Encourage every child to excel and compete to be scholars.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=821

WOTC - New CEO of SMRT

I asked this question in the Wisdom of the Crowd:

Do you agree that the new CEO of SMRT should take public transport to work?

Here are the responses: (68 Votes)

37 % - I still need him to solve the rail breakdown problem.
24 % - It is a short term public relations stunt
21 % - Government ministers should do the same.
19 % - It is a good start.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=820

WOTC - Learn a new subject

I asked this question in the Wisdom of the Crowd:

Which method do you prefer to learn a new subject?

Here are the responses: (72 Votes)

61 % - Watch a video
22 % - Read a book
10 % - Listen to a podcast
7 % - Ask a friend
0 % - I stopped learning

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=819

Central planning

Central planning by socialist countries failed in the past. But that was a different era.

Today, central planning is likely to succeed. Why?

We are in the age of the Internet. We have large volumes of data that can be used for planning.

It is easy to measure the results and to communicate them quickly to all the relevant parts of the organization. This will help to achieve the goal of efficiency and accountability.

Large organizations have central planning. They describe it as "corporate planning". The need to plan their corporate goals and have them achieved through decentralized execution. They measure the results and performance of the different parts of the organization and act on the results.

The key difference between the central planning of a private enterprise and of a government is in the goal that is being pursued.

A private enterprise is driven to achieve the maximum profit, usually by suppressing wages, overcharging and delivering inferior quality at lower cost.

The aim of the government should be to deliver the public goods in a cost efficient manner by using the cost plus method.

If the government provides a subsidy, they will have means to ensure that the subsidy is distributed equitably and that nobody abuses the subsidy for personal gain. Examples of subsidized public goods are basic education and health care.

There is still room for the private sector to cater for wealthy people who can pay for better quality.

But ordinary people would prefer to have their basic needs met at low cost. They want low cost of living.

Do not be fooled by people who imply that central planning by government is bad. It did not work in the past for various reasons. But it can work well today. And it is a better way to deliver public goods and lower the cost of living for ordinary people.

Tan Kin Lian

Repair and maintenance of HDB estates

As our HDB estates and flats get older, they will need to be repaired, maintained and replaced.

We need to create a new way of handling the work at low cost.

The current practice of tendering is wasteful and costly. It may end up with high cost and shoddy work in many cases.

What is the alternative.

We can form a state owned company to carry out the work on a cost plus model. It is like in the old days where the HDB was able to build the flats at low cost through planning and economy of scale.

This company can order the required materials in bulk at low cost. They can also train local workers to do the work and provide continuity of employment at fair wages.

Owners who have special requirements can engage private contractors. Those who are happy with basic work done at low cost can engage this company that operates on a cost plus model.

There is a need to ensure that this company operates efficiently and do not work in a corrupt manner. This can be controlled through proper supervision. This company will operate through several operating divisions. The performance of the divisions can be compared and identify inefficiency.

The operating principle is to produce an acceptable quality of work at a low cost. It is not to generate the most profit to provide bonuses to managers or owners.

I believe that such a model can work. We can give it a try. But we have to put in the time and effort to make sure that it is properly managed.

WOTC - Salary of SMRT CEO

I asked this question in the Wisdom of the Crowd:

What is a reasonable annual basic salary for the new CEO of SMRT?

Here are the responses: (63 Votes)

83 % - $500,000
13 % - $1,000,000
3 % - $1,500,000
2 % - $2,000,000
0 % - $2,500,000 or more

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=818

WOTC - Li Hongyi in politics

I asked this question in the Wisdom of the Crowd:

Is it a good strategy for PAP to field Li Hongyi for the next general election?

Here are the responses: (76 Votes)

42 % - It will be seen as nepotism,.
39 % - Singapore will be doomed.
12 % - He should contest in a single ward to test his popularity.
7 % - It will provide certainty for the future succession to lead Singapore.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=817

WOTC - Former PAP MPs

I asked this question in the Wisdom of the Crowd:

Will it help if Tan Cheng Bock's coalition can recruit a few former PAP MPs?

Here are the responses: (69 Votes)

49 % - It will increase the votes for the coalition significantly.
25 % - It will increase the votes for the coalition slightly.
12 % - The former PAP MPs will be disliked by the opposition voters.
7 % - It will be negative for the coalition.
7 % - The former PAP MPs have experience.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=816

WOTC - Lee Hsien Yang in politics

I asked this question in the Wisdom of the Crowd:

Will Lee Hsien Yang make an impact if he joins Tan Cheng Bock's coalition?

Here are the responses: (81 Votes)

49 % - He will increase the votes for the coalition significantly.
27 % - People will not trust him, as he is from the Lee family.
14 % - It will increase the votes for the coalition slightly.
10 % - It will be negative for the coalition.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=815

Merdeka Generation Package

Those born in the "Merdeka Generation" should not celebrate the "Merdeka Generation Package".

Why?

Are you not the generation that spent 2 and half years to serve National Service and another 15 years for reservist training that disrupt your career?


Are you not the generation that paid a higher price for your HDB flat?

Are you really so well off that can afford the exorbitant medical expenses that have increased mercilessly during the past decade?

Surely, the government can give you the same benefits as those expended to the "Pioneer Generation"?

Why does this penny pinching government not extend the PG package to your generation?

Why do they have to create a new package and give you less that what you need, less than what you deserve?

And this bad decision is taken after they have increased the water charges, electricity charges, transport charges and other charges that added to the cost of living? This is not counting the increase in GST to 9% that will be implemented in the near future.

Yes, the Merdeka Generation Package is better than nothing. Surely, as citizens you deserve more than nothing, after all the sacrifices that you made for your country?

Tan Kin Lian

Restructure the bus system

I have now modified my proposal for an express bus system that connects 10 regions. Each region will have 2 interchanges.

If a bus travels from region A to region B, it will stop at 4 interchanges, including the starting point. In between, they will travel on the expressway.

With 10 regions, we need 45 express services. We do not need 330 bus services.

From the interchanges, there will be feeder buses to the nearby areas.

For example, Toa Payoh and Bishan can be considered as one region. Similar Serangoon and Hougang can be considered as 1 region. Ang Mo Kio is big enough to be a separate region on its own, so it have two interchanges.

Most people can take a local bus to an interchange and take an express bus to another interchange and a local bus to the final destination.

Under the new system, the interchange will have only 9 express services to the other regions and perhaps 4 local services. It will be more manageable than the current system.

The interchanges are also connected to the MRT station. They can transfer to the MRT station also.

My view on VERS

The voluntary enbloc redevelopment scheme (VERS) that the HDB will introduce in 20 years time is a good scheme. It allows HDB owners to sell their 70 year old flats back to HDB and get cash.

But the owners should have a realistic expectation. They cannot expect a windfall gain.

Why?

You are selling back to HDB. HDB will give you a fair price, but it will not be a windfall.

Remember, the government has plenty of land, so HDB does not need to offer you a windfall price for your old HDB flat to tear it down. It is easier for HDB to buy empty land from the government.

After you get the cash from the VERS, you should expect to pay three times of that amount to get a similar flat in the same location.

Why 3 times? You are getting a fresh 99 year lease instead of a 30 year lease. You are also getting a new flat to replace an old flat.

If your old flat has a lower density, maybe, you can get a better price, so you do not need to pay 3 times to get a new flat.

You can buy a smaller flat or move to a remote location. That is a sensible move.

Still, the VERS gives HDB owners an option, but it will not be a windfall.

Tan Kin Lian

NRIC disclose year of birth

When the NRIC started, a sequential number was given. If we kept to this system, we would be able to keep to the S series as we have not passed 10 million of citizens yet.

Somebody decided that the first two digits should be the year of birth. This was a stupid decision.

Suddenly, there is some sensitive information in the NRIC. Some people don't want their age to be disclosed.

It became necessary for the NRIC to be kept secret.

Furthermore, we run out of S series under the new millennium and have to introduce the T series.

This has been a costly mistake. It was made by bureaucrats and scholars living in the ivory tower.

It could have been avoided if these issues were better discussed in public or in parliament.

This is the weakness and flaw of the Singapore system under the PAP.

It was all right during the first generation of civil servants, but it became very bad after that.

Investing in old flats

The government is probably worried that they will end up holding too many HDB flats that they had bought under the lease buyback scheme.

They should not be afraid of this outcome.

There is nothing wrong with the government owning assets. Just look at the trillions that are owned by the government in government buildings and land.

What is the problem of adding a few more billions under HDB for the lease buyback scheme?

What happens when the lessees eventually die and the flats revert to HDB?

These flats can be rented out to young people who are waiting for the new HDB flat. It will help to get young people to marry younger and start a family.

If the HDB does not want to manage the rental of these flats, they can appoint an operating company to manage it. This follows the model adopted by the Land Transport Authority.

The government can also buy the old flats outright, i.e. not under the lease buyback scheme. They can make these flats available for rental to young people and also to old people.

We need to create a more active market and ensure that the HDB flats are put to better use. We need to create a health supply and demand for the old flats.

The government needs to rethink and change its operating model and keep up with the times.

Tan Kin Lian

Move away from the fallacy of "investment" in leasehold property

The government should get away from the fallacy that purchasing a HDB flat is an investment.

Why?

The HDB flat will eventually have no value at the end of the lease. It is just advance payment for the remainder of the lease.

If the lease is long, the lessee pays a higher price. If it is shorter, the lessee pays a lower price.

There is no commercial sense in forcing the lessee to buy only long lease flats "for investment". Currently, the lessee has to buy a flat with a remaining lease of at least 60 years or if the remaining age plus the remaining lease exceed 90 years.

The government should just allow the remaining lease to be 30 years or longer for a start. 30 years is long enough. Eventually, the remaining lease requirement could be shortened to 10 years.

Why force the buyer to lock up so much savings in the advance payment for a long tease?

By freeing up the market, the government will allow the existing owner to cash out their old flats. This will be good for both buyer and seller. It will create a more "normal" market.

This will require the use of CPF to be relaxed for paying for leases below 60 years.

Let us get away from the fallacy that a long lease is an investment. All leaseholds will decay to zero value at the end of the lease.

Tan Kin Lian

Extend lease buyback scheme to the commercial banks

The government has now decided to extend the Lease Buyback scheme to owners of 5 room flats. Previously, it was restricted only to 3 and 4 room flats.

This extension make sense, as the some owners of 5 room flats also need this facility.

Anyway, it is up to the government to set the price and terms for the lease buyback. They have a monopoly of this business. The commercial banks are restricted from dealing with it.

Since the banks are allowed to give loans on new flats, there is no reason to restrict the banks from the lease buyback scheme. They should now be allowed to enter into this market and give some competition to the government, which seemed to operate this monopoly to make a profit.

WOTC - Cap on legal fees

I asked this question in the Wisdom of the Crowd:

Should the government set caps on legal fees?

Here are the responses: (43 Votes)

44 % - Yes, for all types of legal work, except highly specialized work
37 % - Yes, for standard contracts that ordinary people have to rely on.
9 % - Yes, for litigation in court.
9 % - Leave it to market competition.

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=814

WOTC - Businesses and Pay Now

I asked this question in the Wisdom of the Crowd:

Will you use PayNow to pay your bills to businesses?

Here are the responses: (45 Votes)

38 % - Quite likely. It is more convenient than writing cheques
22 % - I will give it a try.
22 % - I do not trust Internet payment.
13 % - I have no money in my bank account.
4 % - I prefer to write cheques

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=813

Wasteful duplication

Here is another example of the wastefulness that is quite common in Singapore.

We spend hundreds of million of dollars to implement new systems, when the information is already available in existing systems, and they are not being used.

http://tklcloud.com/Feedback/feedback2.aspx?id=296

Health Promotion Board - no access to basic information

At the Health Promotion Board booth in Ang Mo Kio polyclinic, I had this conversation with the staff.

Staff - have you taken a blood test recently?
TKL - yes, at a private GP
Staff - what about colon examination?
TKL - I had a colonoscopy recently at Khoo Teck Kuat Hospital.
Staff - when was it?
TKL - I cannot remember. The hospital is within your same group. Don't you have access to this information?
Staff - No.

Well - why is the MOH launching the national electronic health record system, when simple information is not integrated? It sees that the Health Promotion Board is working in isolation and not having access to basic information like dates and status of health checks. Instead, they know want all doctors to record all visits.

Singapore is wasteful in our approach towards the Smart Nation.

Allow CPF to be fully withdrawn at 55

Most people are expected to work to age 65 and beyond. Those that are still healthy will prefer to continue working.

But we should give them the option to withdraw their CPF savings at age 55, if they wish to.

Here are the reasons:

a) Some of them need to use the savings to pay off debts, due to medical bills, children's education and other reasons.
b) Those who do not need the money can still keep them in CPF to earn interest.
c) Many may want the chance to travel to other countries, while they are still healthy and can walk.

There is the risk that some of them will squander off their savings, or will make bad investments. This risk can be better through giving proper financial counselling.

Considering the pros and cons, we should ask the government to revert to the old scheme to allow CPF to be withdrawn at age 55.

Tan Kin Lian

WOTC - Preferred quality for MP

I asked this question in the Wisdom of the Crowd:

Who do you prefer as your MP in Parliament?

Here are the responses: (47 Votes)

57 % - A person who can work full time in this job
17 % - An older person who is wiser through experience.
13 % - A retired person who has the time to serve the country and does not need the income.
6 % - A young person who understands the aspirations of the young.
6 % - A capable person who can earn a high income in other professions 

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=812

WOTC - Preferred economic system

I asked this question in the Wisdom of the Crowd:

What economic system do you prefer?

Here are the responses: (45 Votes)

36 % - Better protection for lower income people, with more controls.
33 % - A regulated market with less inequality.
16 % - A free market with the chance to make a lot of money.
13 % - Higher income tax to provide social benefits.
2 % - A growing economy fed by a bigger population

See the pie chart at: 
http://www.wisdomofthecrowd.sg/chart.aspx?ID=811