Pay an adequate hourly rate

I found, to my surprise, that casual workers are paid as low as $3 an hour, for example, at fast food outlets.

If they work for 8 hours a day, they earn only $500 a month. This is too low to make a living. The cost of living is quite high.

I suggest that the minimum wage should be at least $6 an hour. A person working 8 hours a day should earn about $1,000 a month all-in.

Maybe $6 is still inadequate, but it is better than $3.

Digital navigation system a hazard?

Editor
Forum Page
Straits Times

I refer to the letter entitled "Digital navigation system a hazard?" by Michael Yeo Khee Hiang (St Times, 10 Sept).

I have tried a few PDA and PC-based navigation systems in my car over the past 12 months.

They are very useful and quite safe to use. All provide clear voice directions and do not require the driver to watch the video screen.

By giving directions earlier, it helps the driver to keep to the correct lane and drive more carefully. It avoids accidents due to unfamiliarity with the roads.

It may take a new user a few days to get used to the system. During the initial period, the problem raised by Michael Yeo could arise. But, the benefit will accrue after that.

I encourage more cars to be installed with the navigation system to promote safe driving.

Tan Kin Lian
(sent in my personal capacity)

Car sharing for newly qualified drivers?

The Editor
ST Online
9 September 2005

I refer to the letter from Tan Tiong Heng (ST Forum Online 8 Sep 2005).

NTUC Income operates the car sharing scheme to provide an afforable means for its members to share the use of the cars owned by the cooperative. We operate a fleet of 180 cars located at 70 convenient locations. The current fleet serves 5,200 members.

At present, we impose a condition that a member must have at least 30 months of driving experience. This is to reduce the incidence of accidents. If there are many accidents, the cars will not be available and will adversely affect the quality of service to other members.

New drivers can borrow a car from family members, friends or colleagues. They also often benefit from being accompanied by another experienced driver while practising.

We do not think it is suitable for the car cooperative to mix the needs of new drivers with the general needs of our members. Nevertheless, we do adopt a flexible approach and will be prepared to waive the 30 month bar if the applicant can demonstrate his car handling capability.

We have taken note of the views of Mr Tan. We will see if we can set aside a few additional cars to serve the needs of newly qualified drivers.

Lewis Chen
General Manager
NTUC Income Car Co-Op

Risk is to your advantage

I advise investors to invest in a large, well diversified mutual fund, such as the combined fund operated by NTUC Income. They ask, "is it risky?"

I reply, "yes, but risk is to your advantage". Here is my reason:

- if you invest $100,000 to earn 2.5% for 10 years (ie a safe investment), you will get $128,000

- if you invest to earn 6% (ie a risky investment), you will get $178,000.

- risk can work both ways - you can get more or les than $178,000 at the end of 10 years

- if you get more than $178,000, you can realise your investment

- if the market is bad and you get less than $178,000, you can wait 1, 2 or 3 years for a better time to realise your investment

- risk is to your advantage, if you can wait for the right time to realise your investment.

Many people who attend my educational seminar agree with my statement, "Risk is to your advantage". They choose a fund that has a higher proportion invested in equities.

A wonderful message

A reader of my blog sent me this wonderful message:

Dear Mr Tan

Thanks for putting in the extra effort in writing a blog. Yours is very informative and straight to the point. No nonsense, short and sweet. It's the best I have ever come across.

Fuel Subsidy

Poor countries face a dilemma with rising oil prices.

If the government keeps the domestic price low, they bear the cost of the subsidy. Their people can take advantage of the subsidised price and buy more and make a profit from re-selling the fuel.

If they adjust the price to reflect the world market price, the ordinary people cannot afford the higher price.

What should they do?

Trading in Structured Warrants

Dr Larry Haverkamp wrote an article in Business Times. He said:

- many people are trading a lot of money in structured warrants
- last month the amount was $1 billion, representing 20 per cent of the stock exchange’s total trading volume
- structured warrants are a "zero-sum" game; for every $1 million won by some people, others will lose $1 million.

Dr Haverkamp also told me separately:

- the structured warrants are created by the issuing banks
- they set its price at issuance
- issuing banks are also the market-makers
- they do not reveal how much they charge for issuing the warrants OR for market-making

I have never invested in structured warrants, structured deposits and other complicated products. Without full disclosure of their costs, I prefer to avoid them.

I favour to invest in unit trusts that offer low charges. The investments are likely to earn an average of 5% to 8% per annum over the future. If the charges are less than 1%, I will be able to keep most of the profit for myself.

Handle issues at the proper level

As the CEO, I am available to my customers. I give my e-mail address for them to contact me directly.

Some of our customers are not considerate. They will ask me to handle an issue that can be handled through my colleague.

Here is an example. A policyholder receives a bill that he has already settled. He sends me a complaint that "the bill has already been settled".

My reply to the customer: "I believe that the bill tells you where you can call to make an enquiry. Frankly, I am the CEO but not the person who handles every enquiry. I will pass your enquiry to my officer. "

I hope that people can be more considerate.

Do not involve irrelevant people

A policyholder send an angry letter about not being able to use Medisave to pay the premium under the Managed Healthcare Scheme from 2007. He copied his letter to several ministers.

I replied to the policyholder:

quote
It is my policy never to reply to a person who writes to me, with a copy to the media or to important people in the government. I find this attitude to be unacceptable.

I suggest that you withdraw your previous e-mail (and notify the other people). If you write to me separately on this matter, I shall be happy to reply to you at that time.
unquote

He acted on my request and told the other people that he will liaise directly with me. Although this does not amount to a "withdrawal", I agreed to reply to him.

What is better than ??

Here is a brief summary of an excellent speech given by Butch Jimenez to the graduating class of the University of the Philippines:

What's better than focusing on the negative? Focus on the positive.
What's better than working hard? It's working smart.
What's better than dreaming? Imagineering.
What's better than doing something for yourself? Doing something for your
country.
What's better than a vision? A cause.
What's better than a long speech? Definitely, a short one.

Talk on Investment at Marine Parade Community Club

I gave an educational talk on investment at Marine Parade Community Club on Saturday 27 August. It was well attended with 200 participants. The Q&A session was very lively and interesting.

The audience found the talk to be useful. They also enjoy a bonus of 2% (ie $2,000 for an investment of $100,000) when they invest within 14 days.

We hold a seminar every week, either at NTUC Income Center (Bras Basah Road) or at a community club. Go to www.income.coop to find out about these seminars. Or call 6788 1111 to find out details of the next talk.

Lowest interest rate for policy loan

An AIA policyholder (Ms Bollard) wrote to the Straits Times to complain that AIA charge 8% for their policy loan.

Other insurers charge from 5.5% to 7%.

There is only one insurer that charge 5.5% for the policy loan, ie NTUC Income. The other insurers charge 6% to 7%.

Singapore is too hot?

Singapore is a nice place to live. It is safe, clean and pleasant.

It has a major drawback. It is too hot.

Long ago, we can enjoy the breeze, which makes life more comfortable. But, the breeze has gone. It is blocked by the buildings. The air conditioning from the houses also blow hot air outside.

I am looking for a way to create breeze. If we can have more breeze, it will be more pleasant.

We are now able to create drinking water using science, and be economical. Maybe, we can use our technology to create breeze?

When will the 10% discount on motor insurance cease?

Someone asked me, "When will the 10% discount on motor insurance cease? His car insurance will expire in a few months time. Will the discount be available on his expiry date?"

My reply, "If you wish to enjoy the 10% discount, you can call our hotline now and register. We will keep the discount for your next renewal. If you do not register now, you will not enjoy the 10% discount when the offer ceases in 1 or 2 months' time. "

So, act now. Register first. You can decide at the expiry date, if you wish to take up the offer.

Educate our young on "character"

Our education system focused on "excellence".

To be excellent, a student has to be top in the class. He have to compete against his classmates. Unconsciously, he learns to be self-centered and selfish.

I prefer an education system that is more balanced. Apart from excellence, it has to teach our students on "character". He has to learn to be considerate, to be generous, to be honest and to show concern for others.

Difficult to make regular saving?

A young person told me that his salary is not enough. He has to pay back a university loan. He finds it difficult to make regular saving. What is my advice?

I replied that his priority should be:

- be frugal and modest in his expenses
- repay his university loan in installments
- make regular saving of 10% to 15% of his salary

After that, he can use any spare saving for travel, entertainment and other expenses. He should avoid taking a loan for a car or other major expenses, as the interest charges are high.

It is important to have regular saving now, when he has a job. In the future, jobs will be less certain. He may be retrenched or the company may close down. At that time, he will have to draw down on his savings.

The best way to invest the saving is in a flexible plan, such as a ILP (investment linked plan).

I hope that this advice is useful for other young people.

Repair new cars at distributor workshops?

Someone asked me, "Why can't NTUC Income discuss with the distributor workshop to repair new cars at their workshop and protect the warranty? "

My answer is:

- we are prepared to work with the distributor workshop
- we have approached them on many occasions in the past
- some are willing to agree with us on a price that is 150% of our quality workshop
- other distributors insist on their repair charges, ie 250% of our quality workshop.

We suspect that the distributors discriminate against us on their pricing. They are willing to give discounts to their tied up insurer, but not to us.

We suggest that the motorist register with us, and come to us after the first year. You can enjoy a 10% discount on our competitive premiums.

Insure your new car with NTUC Income

I encourage owner to insure their new cars with NTUC Income:

- you enjoy lower premium

- if your car is repaired at our quality workshop and your distributor void the warranty, we will take over the warranty.

You do not have to pay higher insurance premium or servicing charges, just to protect your warranty.

My advice: you can use the free warranty provided by the distributor for the initial period. After that, you can forget about the warranty. Many motorists tell me that any defects in the car is likely to be identified within the first few months.

If your distributor gives you an incentive to insure with their tied-up insurers, you can take the incentive for the first year. For the second year, you can come to NTUC Income.

If you register with us now, we will give you a discount of 10% on your insurance. You enjoy this 10% discount ON TOP of our competitive premium rates.

Call 6477 7722 or go to www.income.coop

48 million hits in June 2005

The various websites managed by NTUC Income has hit 48 million hits in June 2005. This is a 5 fold increase from 9 million hits 3 years ago.

The visits have increased signifcantly due to:

- launch of Big Trumpet
- revamp of our Income.coop website

We are probably one of the top 10 websites in Singapore - and this counts the large banks with internet banking and the internet service providers.

Visit:

www.bigtrumpet.com.sg
www.income.coop

For candidates who want to work in NTUC Income, visit our recruitment portal:

www.income.coop/careers

Happy National Day.

Singaporeans should learn to see "grey"

In my interaction with many Singaporeans, I find quite a common trait. They see things as "black" or "white". They cannot see things as "grey".

For an issue, they make judgement on what is "right", which is based on their personal opinion. They cannot see that there are many other choices that can also be "right".

They are not able to accept that some things are "not right", but they are also "not wrong".

There people are quite to jump to conclusions (without checking the view of the other person), to make judgement and to criticise other people. We see them reported as the "ugly Singaporean" when they travel overseas.

Here are some tips:

- recognise that there is "black", "white" or many shades of "grey"
- recognise that there can be several "right" choices - not only your own
- respect the views and opinions of others
- as you fight for your "rights", remember that other people also have "rights".

Happy National Day.