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Info-graphics on Singapore’s arms imports, exports and ownership

The Independent
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Info-graphics on Singapore’s arms imports, exports and ownership

After seven long years of negotiations, the United Nations in April last year overwhelmingly adopted the first ever treaty to regulate the US$70 billion global trade in conventional arms such as tanks, warships, attack helicopters, as well as small arms and light weapons (SALWs). Here, we present a few tables to demonstrate Singapore’s ranking in terms of arms ownership, imports and exports worldwide.

While US tops, SG lags far behind

– in gun ownership

table 1

Note: The above data is courtesy Small Arms Survey, whose most recent data on gun ownership is from 2007.

While Switzerland tops, SG lags far behind

– in small arms trade transparency barometer

table 2

Note: The above data is courtesy 2013 edition of the Small Arms Trade Transparency Barometer, which has a seven categories assessment: timeliness, access and consistency in reporting, clarity and comprehensiveness, and the level of detail provided on actual deliveries, licences granted, and licences refused. Major exporters are countries that export—or are believed to export—at least USD 10 million worth of small arms, light weapons, their parts, accessories, and ammunition in a given year. The 2013 Barometer includes all countries that qualified as a major exporter at least once during the 2001–11 calendar years.

While India leads, SG follows suit

– in arms import

table 3

While China leads, SG stands third

– in arms export from Asia

table 4
Note: The above data is courtesy the Stockholm International Peace Research Institute (SIPRI) Yearbook 2013. The report says “China may represent the vanguard of an increase in the significance of Asian suppliers in the international arms trade, as South Korea is an emerging arms supplier and Japan and Singapore have potential to become major suppliers”.

http://newzzit.com/stories/info-graphics-on-singapores-arms-imports-exports-and-ownership

Is Singapore’s Healthcare System Better Than Other Countries?

The Independent
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Is Singapore’s Healthcare System Better Than Other Countries?
healthcarex-2

Whether you believe it or not, Singapore’s healthcare system is not only one of the best in the world statistically, but it’s also envied worldwide for its efficiency and low cost. Whoa! No need to toss rotten tomatoes at me and brandish pitchforks! It’s true!

In fact, even Forbes and Slate have reported how even the United States looks at Singapore as a healthcare model to follow.

And if you look at the infographic below (taken from Bloomberg’s Most Efficient Health Care statistics), you’ll see why other countries hold Singapore’s healthcare system in such high regard:

Should Singaporeans Complain About Healthcare?

Why then do people complain so much about the healthcare system? Simple – people feel the government is being too stingy efficient with healthcare spending. At only 4.4% of GDP, you’ll find no argument there.

But on the other hand, the government subsidizes up to 80% of your healthcare expenses and forces you to save for future health-related expenses through your CPF (Medisave) – limiting your out-of-pocket expenses.

So who’s right?

Well… that might not matter much in the coming decades, because regardless of your opinion, costs will skyrocket for everyone involved. All you have to do is look at the infographic’s last statistic – the rapid ageing of Singapore’s population.

Once Singapore starts going “grey,” citizens will need to pay higher taxes and Medishield contributions to cover increasing medical costs while the government will have no choice but to up its GDP spending to meet the growing demand for healthcare services.

Only time will tell if Singapore can hold onto its status as one of the world’s most efficient healthcare systems. Stay tuned with us on Facebook as we keep you up to date on developments in Singapore’s healthcare system.

What do you think about these healthcare statistics? Do they change your mind about Singapore’s healthcare system? Share your comments here!

Image Credits:
Fotos GOVBA

Homelessness: 404 families and 565 individuals supported in the last three years

The Independent
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Homelessness: 404 families and 565 individuals supported in the last three years

Singapore’s ministry of social and family development (MSF) acknowledged providing shelter to the needy in the recent sitting of the country’s Parliament

Minister for Social and Family Development Chan Chun Sing in an oral reply to a question by member of Parliament for Aljunied Group Representation Constituency Muhamad Faisal Abdul Manap recently informed the Parliament, “Between 2011 to 2013, MSF provided support and shelter to 565 individuals and 404 families. About 80% are of low-income and have weak social support.”

“Three out of four were previous flat owners who had sold their flats for a variety of reasons, such as settling financial or debt problems, divorces, cashing out to make a profit, etc. After the sale of their flats, they find themselves not being able to afford to buy or rent another flat. Another one-quarter had fallen out their families and friends whom they were living with, due to reasons such as strained relationships, anti-social behaviour or addiction-related problems.”

Enumerating the assistance his government gives to these individuals and families in exploring “sustainable housing options”, the minister added, “Sometimes, social workers help them to reunite and stay with their family members. For those with no options, the Housing Development Board (HDB) will assist them with rental flats under the Public Rental Scheme. For those who need temporary rental accommodation while they wait for or work out their longer-term housing option, HDB may refer them to interim rental housing.”

Additionally, the government also provides financial assistance and social support to enable the families to regain their independence, Chan said. Importantly, “efforts are taken to ensure the children continue to attend school and that the safety, welfare and interests of vulnerable family members are taken care of”.

Finally, the minister emphasised on the role of cooperation and positive action by such families, and concluded, “Homelessness is a complex problem. We want to provide help to families facing housing issues. But there will be little progress if families are unwilling to work with government officials and social workers to resolve their problems.”

Credit: Newzzit

How TOTAL is Total Defence?

The Independent
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How TOTAL is Total Defence?

by Michael Y.P. Ang

The Government appears to be using the word “inclusiveness” often in recent years. We are repeatedly urged to accept immigrants, hire workers regardless of birthplace or age and embrace naturalised athletes as our own.

Why is it then that when it comes to the one thing that helps to maintain the existence of Singapore as an independent nation – defence – the Government bends over backwards to exclude certain Singaporeans based on birthplace and age, making those who are naturalised during adulthood exempt from national service, even if they are not above the NS age (below 40).

If the Government wants us to embrace naturalised citizens, why are some excluded from crucial roles in national defence? And why are we building a non-inclusive society through two-tier citizenship?

Exempting adult naturalised citizens from NS appears to also contradict the Government’s national defence strategy, outlined in the Five Pillars of Total Defence.

Pillar 1 (Military Defence) proclaims: “To defend ourselves when attacked or, more importantly, to deter foreign intervention and prevent ourselves from being attacked”.

If we are serious about defence and embracing social inclusiveness, why are some citizens excluded from such a vital duty even when they meet the physical and age requirements?

Pillar 2 (Civil Defence) states that “During times of crisis or disaster, resources will be strained and we will need everyone to pitch in”.

What has happened to the concept of needing “everyone to pitch in”? For those unsuitable for military service, could they not be posted to the Singapore Civil Defence Force?

Pillar 3 (Economic Defence) calls on Singaporeans to “play a part by retraining and upgrading” to “remain employable as the economy changes and old jobs give way to new ones”.

Adult naturalised citizens do play a part in this, but doesn’t every other working person (male or female, young or old) in Singapore do the same to the best of his or her abilities?

Pillar 4 (Social Defence) reads: “We befriend, accept and help people of different ethnicities. We show consideration for one another, respecting and being sensitive to the needs and religious and cultural practices of others”.

Although integration of naturalised citizens is not the purpose of NS, is there a better way of promoting integration while meeting our national defence needs at the same time?

Is there another regular activity that allows new Singaporeans to engage their fellow Singaporeans of various ethnicities, religions, social statuses (white-collar or blue-collar workers, managers or non-managers), and income levels as equals?

We are asked to invite new citizens to our social gatherings, but isn’t it silly that because of their presence, we need to make it a point to refrain from reminiscing about our NS experiences so as not to make them feel socially excluded?

Pillar 5 (Psychological Defence) says, “While being prepared is the key to Total Defence, it is always the fighting spirit… that determines whether or not our nation will overcome a crisis.”

By excluding new adult citizens from being trained and prepared, we are essentially prohibiting them access to “the key to Total Defence”. Will this not dampen their fighting spirit?

Yes, imposing a two-year NS stint on adult naturalised citizens is impractical, but why not a modified form of NS where individuals learn basic combat or civil defence skills over a number of weekends, so they can play a meaningful role in defence if and when the need arises?

It is meaningless for the Government to exhort inclusiveness when, in practice, it is selective inclusiveness. The Government should not exclude new male citizens, based simply on age, from a deeply Singaporean activity, lumping them together with those not equipped to engage in that activity – the elderly, medically unfit, mentally ill, physically disabled, and kids.

It is true that adult naturalised citizens did not enjoy the fruits of our nationhood during their younger years, but are they not going to enjoy the benefits of Singaporean citizenship for the rest of their lives?

Perhaps we could get the ball rolling by requiring them to meet the fitness standards of the Individual Physical Proficiency Test. Surely, this is not too much to ask on Total Defence Day.

An Ex-CPF Employee Exposes the 3 Biggest Complaints Singaporeans Have About Their CPF Accounts

The Independent
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An Ex-CPF Employee Exposes the 3 Biggest Complaints Singaporeans Have About Their CPF Accounts

Few questions divide Singaporeans as much as this one – What is CPF used for? As you process your own answer to that question, chances are the words “retirement,” “housing,” healthcare” and maybe “Ponzi scheme” are running through your head.

But no matter what function(s) you think CPF serves, everyone faces the reality of having to pay their “dues” to keep the system going. That means contributing 20% of your salary (up to age 50) every month to a scheme that only benefits those who vastly surpass the current minimum balance of $144K. Sadly, more Singaporeans who have money in CPF and need it can’t even touch it.

An ex-CPF employee named “Brian” (who wishes to remain anonymous for very obvious reasons), who deals with the valid concerns of Singaporeans daily, was kind enough to help us shed some light on what Singaporeans complain about most when it comes to their CPF accounts.

Here are Singaporeans’ 3 biggest complaints about their CPF accounts:

1. It’s Nearly Impossible to Access Your Retirement Account (RA) Funds

The biggest limiting factor people have when it comes to their CPF accounts is the fact that their Retirement Account (RA) funds are about as inaccessible as Area 51 until you reach the drawdown, which varies from 62 to 65 depending on your year of birth.

The problem with having an inaccessible RA account is that it leaves Singaporeans still servicing their home loan with their CPF in a helpless situation because:

  1. Retrenchment: No income means they can no longer make contributions into his/her Ordinary Account (OA).
  2. Contribution level: The contribution level decreases significantly after 55, making it harder to meet the minimum cash component in RA.

“It’s sad, there were several occasions when we had to direct Singaporeans to HDB or the banks because our hands were tied – we couldn’t release their funds to them even though they may have thousands in their RA to help with their home loan repayments,” says Brian.

Ironically, the only exceptions for using your RA funds involve purchasing property under the following conditions:

  1. You can only use the excess in your RA AFTER setting aside the minimum cash component, which is currently $148K.
  2. Of that $148K, you’ll need to maintain $74K in your RA, with the excess (excluding annual interests) being available for the purchase of property.

*Note on property purchases: According to Brian, there is a way for you to use your OA towards purchasing property. If you have booked a BTO flat before turning 55, you can write in to CPF to have funds from your OA reserved for the purchase. In fact, Singaporeans have been successful in having these requests approved.

2. You Can’t Withdraw As Much from CPF at Age 55

Just a few years ago, if you turned 55 before 2009, you could have withdrawn 50% of your combined OA and Special Account (SA) funds! So if you had today’s current minimum sum of $148K, you could withdraw $74,000.

Then in 2009, the limit dropped to 40%. And then… well, I think you know where this is going right? Let’s just say that CPF reduced the withdrawal limit faster than an Indonesian palm plantation owner reduces forestland.

Today, if you don’t have the full minimum sum of $148K – you ONLY get $5K. The rest gets sent over to your RA, which you probably won’t see for another 7 to 10 years.

The biggest complaints Brian received about the inability of some Singaporeans to get more than $5K were:

  • Couldn’t pay off debts: Singaporeans who were financially troubled and had debts to pay off could not pay them even though they had thousands of dollars in their RA.
  • In danger of home repossession: Singaporeans who were having trouble keeping up with their home loan repayments due to retrenchment or financial difficulty couldn’t access the money they needed to maintain their repayments even though they might have had $50K in their RA.
  • Couldn’t go on pilgrimage: Many elderly Muslims who were waiting till age 55 to use their funds to go on pilgrimage (Hajj) were left disappointed when the amount they could withdraw wasn’t enough.

*Note on pledging your property: Brian points out that if you’ve used your CPF to purchase a home, you can opt to pledge or increase the pledge of your property. So if you just turn 55 this year and you’ve got the full minimum sum of $148K, you can pledge your property up to $74K, freeing up the “excess” $74K in your CPF for withdrawal.

3. There Are Times When You CAN’T Use CPF for Housing

When you buy a home, there’s a limit to how much CPF you can use to purchase a home, called the Valuation Limit (VL). The VL is determined by the lower value of either the market price or the valuation price of a home, and you cannot withdraw more than 120% of the VL, which is called the Withdrawal Limit (WL).

So what happens when you reach the VL of your home?

If you’re below 55, you’ll need to maintain either half the prevailing minimum sum cash component (Your OA+SA+SA investments) or the minimum sum cash component in your RA if you’re over 55 (and you can only use your RA excess to service your home loan). If you don’t follow these conditions, you CAN’T use your CPF to service your home loan.

Not knowing when you can’t use your CPF to service your home loan is a huge reason why people contact CPF, especially when Singaporeans:

  • Reach their VL before age 55 and haven’t maintained half of their prevailing minimum sum cash component (OA+SA+SA investments).
  • Reach their VL after age 55 and haven’t maintained their minimum sum cash component in their RA (only RA excess can be used!).
  • Surpass their WL.

CPF Staff Are There to Help, But They Don’t Make Policy

“We understand that CPF needs to be more flexible in allowing Singaporeans to use their funds. What’s the point of having thousands of ‘untouchable’ dollars set aside for retirement when Singaporeans are dealing with financial difficulty now? But we do our best to help people out as much as possible,” says Brian.

Brian also stated that the complaints above made up about 70% of their total communications. That’s A LOT of daily gripes to deal with.

Most Singaporeans have their reasons to complain about CPF. If you’ve read Dear CPF: Give Me Back My Money, you know just a few of the many grievances people have with the scheme. But before you call up or email CPF to give them a piece of your mind, please remember that the hard working employees don’t set policy – they’re there to help you as best as they can.

What complaints or praise do you have about CPF? Share your experience on Facebook! And to find even more useful information on everything personal finance, visit MoneySmart today!

Image Credits:
fox2mike

MARUAH mulls over the future of Little India

The Independent
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MARUAH mulls over the future of Little India

Human rights group MARUAH held a forum on Feb 12 to discuss the hastily-tabled Public Order (Additional Temporary Measures) Bill.

The Bill will be discussed in parliament next Monday, Feb 17.

The civil rights group raised some issues of concern: possibility of abuse in implementation, relevance of creating a new Public Order Bill, the effect on local businesses and the loss of a recreational area for migrant workers.

The Bill allows the police to conduct strip searches, dispose of liquor and ban those who are deemed a public threat from the area.

However Dr Kevin Tan, a law professor of National University of Singapore, highlighted that the police must satisfy specific criteria before using the search powers granted by the Bill. According to Tan, the police must have “a reasonable suspicion” that a person is carrying alcohol before they can strip-search him or her.

“What are the chances of abuse? When you use phrases like, ‘if they think it is necessary or in the best interest of everyone’ there is the danger the Bill will become very subjective,” he added.

Tan further questioned if the existing framework is not adequate to prevent another riot from taking place.

“One reason I suspect is they are afraid that it is too difficult to police the area. Rather than wait until something is likely to go wrong and then act, you just prevent things from going on so you do not have to act,” he said.

Tan also said that the Bill has an “underlying assumption” that alcohol was the primary cause of the Little India riot. He added that it is problematic to talk about this as the official Committee of Inquiry’s work is not over. “It could be multiple causes…The danger of this Bill is that you end up targeting a wider range of people who may have no connection with any of the causal links that led to the riot,” he said.

Also a panelist at the forum, journalism student Prabhu Silvam, who independently took pictures and wrote stories of those who witnessed the riot, said that many who sold alcohol in the district were losing money.

About 20 shop owners and other businesses in the special zone, who did not identify themselves, turned up for the forum. Already feeling the pinch from rental costs, employee wages and dwindling weekend crowds, all reacted with dismay to the restrictive aspects of the proposed Bill.

Panellst T. Satisharan said some shop owners were resigned to the eventuality of  some businesses moving out of the area. The co-founder of the Inter-Cultural Theatre Institute recounted how a liquor shop owner in Little India for the last 20 years told him that he would have to move out of the area because he has already incurred losses of $40,000 since the alcohol ban was announced.

Apart from businesses, MARUAH also raised the worry about the well-being of the foreign workers.

The civil group asked: Where can South Asian foreign workers hang out during the weekends if such the Bill becomes law? Apart from Little India, where can this group of people go to, where is that place that feels like home?

WATCH THIS for more on foreign workers and alcohol:

[fvplayer src=”http://youtube.com/watch?v=jAz2loLLMP8″]

Will Raising CPF Contribution Rates For the Elderly Really Make It Easier For Them to “Retire?”

The Independent
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Will Raising CPF Contribution Rates For the Elderly Really Make It Easier For Them to “Retire?”
4082108865_cbb500f220_b

The superficial answer to that question would be “yes.” But the truthful answer is well… you don’t need to me say it right? Recently, the Labor Movement, otherwise known as the National Trades Union Congress (NTUC), brought up the issue of raising the Central Provident Fund (CPF) contributions from 32.5 percent to 36 percent for workers above 50 to 55.

 

Right after we wrote about the top complaints Singaporeans had with their CPF account, NTUC coincidentally mooted the above proposal. There’s no confirmation as to who will pick up the tab on these contributions, but it’s looking like employers will shoulder most, if not all of the increase. Of course, that makes business owners nervous about their bottom line when it comes to hiring more elderly employees.

I completely agree that CPF contribution rates should be raised for elderly Singaporeans. But I think the Labor Movement’s proposal leaves out one VERY important group – Singaporeans past the age of 55 who are still working well into their “retirement” years.

What Does a Growing Elderly Workforce Say About CPF and Retirement?

While a contribution increase is a step in the right direction towards helping elderly Singaporeans achieve that illusive dream called “retirement,” it also brings up a troubling question – why has the number of Singaporeans working beyond the age of 65 doubled over the last 10 years according to Ministry of Manpower (MOM) statistics?

Take a moment to ponder the following data on the percentage of elderly Singaporeans still working well past the age 55:

Labor Force Participation Rate (Percentage) – By Age From 2003-2013
Age 2003 2005 2007 2009 2011 2013
55-59 57.5 63.5 66.0 68.4 70.2 73.2
60-64 34.2 43.9 46.7 50.6 54.7 59.7
65-69 19.5 25.3 26.6 29.9 36.2 40.2

I’d like to think that the growing number of Singaporeans working past the age of 65 is because they enjoy their jobs and want to be active.

But my instincts tell me that many Singaporeans working past the drawdown age do so because they have to, not because they want to – but I could be wrong.

Either way, it’s hard to dispute the fact that more and more elderly Singaporeans have to keep working well past 55, which makes me think that MAYBE contributions should be extended to them too. After all, there’s a HUGE difference in CPF contributions from age 55 to 65+. I don’t know about you, but I think they should have their CPF contributions raised as well. What do you think?

For those of you not familiar with their contribution rates (Total Contribution), here they are:

  • Age 50-55: 32.5% (NTUC is proposing it be raised to 36%)
  • Age 55-60: 23.5%
  • Age 60-65: 14.5%
  • Age 65+: 11.5%

The reality is that many elderly Singaporeans reaching 55 are finding out too late that they don’t have enough to retire on. Unfortunately, if you don’t reach the 148K current minimum balance, all you get is 5K, a pat on the back, and a “come back in 7 to 10 years for the rest” response.

So maybe the “real” retirement age for Singaporeans should be 75 instead of 65, because that’s the portrait the statistics above are starting to paint. It breaks my heart to say this, but for the elderly Singaporeans who are already going through this situation, it’s really too late to start saving. A CPF contribution hike might ease the cost of living a bit, but it’s not a cure.

But for those of you still lucky enough to have the benefit of youth, you owe it to yourself to get up to speed on what you need to do to ensure you’re in a prime position to actually have the choice of working during your latter days.

Knowledge Is Your Best Weapon for Avoiding the Pitfalls of CPF

CPF, which is jokingly referred to as the “Coffin Protection Fund” by some, has never been an easy system to understand. That fact should trouble you – because it’s probably the most important scheme that you’re pumping money into (20% of your salary until age 50).

Yet, the reality is that most of us know very little about it, especially when it comes to the retirement aspects of the system. Then again, CPF is so complex – it makes Inception and Memento look like Sesame Street by comparison. No wonder people are frustrated with the system!

But I’ll tell you this, as painful as it is, you MUST make an effort to learn more about it. I’m not saying you need to read every insufferably complex page on CPF’s website – that’s Guantamo-like torture.

The best way to learn about your current CPF situation and plan for your future is to:

  • Make an e-appointment with a CPF customer service executive so they can help you make sense of your current CPF situation.
  • Attend CPF seminars on components like buying home, healthcare, etc. Bookmark the CPF Events page on your web browser!

So fill up EVERY appointment slot and FILL those auditoriums people, because the time to ask questions is NOW, not 20 or 30 years from now.

Of course, at MoneySmart, we’ll continue to inform you of the last happenings on not just CPF, but on everything personal finance-related! Follow us on Facebook to stay informed!

At MoneySmart, we have two questions for our readers:

  • Will raising the CPF contributions by employers for elderly employees up to age 65 make “retirement” an easier dream to attain?
  • If you’re at retirement age (65 or older), are you still working because you WANT to, or because you NEED to?

Share your thoughts with us on here!

Image Credits:
tallkev

Happy Valentine’s Day to the men of Singapore

The Independent
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Happy Valentine’s Day to the men of Singapore

Dear men of Singapore,

I do not know all of you but I am dating one of you. I am fortunate to be with a man who has an opinion and does not falter when I attempt to bully him into agreeing with me in an argument. He is always clear with his own beliefs and I respect that quality in him. I admit that it feels terribly lonely when the person closest to you does not share your opinion, but it is also terribly satisfying to see your partner stand up for his views.

Truth be told, I have not met many of you. Those who won’t apologise  for the sake of keeping the peace in a relationship. And those who refuse to buy a girl gifts just because she demands them.

I have met men who refuse to say, “anything lah” to questions a girl asks. Whether it is where to eat, where to go or how they feel, they are always vocal and honest about themselves.

A month ago, I was walking down Orchard Road and I met one of you. He was about 18 years old and a complete stranger. He walked up to me and struck up a conversation. I could tell he was nervous but he talked to me for half an hour without missing a beat. I asked him why he talked to me, he said: “I want to get out of my comfort zone.”

I love the fact he was brave even though he was afraid. There is nothing corny about walking up to a girl in broad daylight for a chat. It shows confidence. It shows that you are not the type who will run away when circumstances throw you out of your comfort zone.

So dear men, I do not care how many times you have been rejected by a girl. I do not care how many people have called you a wuss. I have seen some of you stand up for yourselves. Just because the current trend of the media is to empower women, it does not mean men should be disempowered by the truckloads of  women masquerading as feminists.

Be brave, stand out. We women love a man with a backbone. Happy Valentine’s Day!

(Please feel free to to speak your mind in reply.)

MAS Offers Exemptions From TDSR – First Step In Preventing a Home Loan Debt Bubble?

The Independent
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MAS Offers Exemptions From TDSR – First Step In Preventing a Home Loan Debt Bubble?
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Yesterday’s announcement by the Monetary Authority of Singapore (MAS) that it would exempt owner-occupiers of residential properties from the current TDSR rules was an interesting move – especially when you consider how quick MAS moved to contest a Forbes article about a potential housing debt and credit bubble in Singapore.

Maybe the move wasn’t spurned by numerous international media outlets saying the same thing. Maybe it wasn’t the statistical fact that Singaporeans have the one of the highest levels of household debt in Asia, with 75% of that debt coming from home loans.

Maybe the latest MAS exemption was an “I meant to do that” moment, or maybe it’s just the first step in preventing a major housing bubble in Singapore.

Regardless of the rationale for the change, MAS has loosened the TDSR noose around the necks of Singaporean property owners with the following exemptions:

Owner-Occupiers Can Refinance Their Residential Property Loans

If you purchased your home before the latest TDSR rules went into effect on 29 June 2013, MAS will exempt you from the current TDSR restriction so you can refinance your home loan – but only if you’re occupying the home that you’re refinancing.

If you’re unfamiliar with TDSR and exactly how it affects your home purchase, read our Editor’s insightful article “Total Debt Servicing Ratio (TDSR) and How It Affects Your Loans.”

MAS makes it clear that if you’re an owner-occupying trying to refinance, you’ll get the following exemptions:

  • The Mortgage Servicing Ration (MSR) won’t apply to you if you’re refinancing a home loan for an HDB flat or an Executive Condominium (EC) ONLY if you purchased the HDB flat before 12 January 2013 or 10 December 2013 for ECs (MSR implementation dates).
  • If your purchased your residential property before the current loan tenure limits (30 years for HDB/35 years for all other residential properties) were implemented on 28 August 2013 for HDB flats and 6 October 2012 for all other residential properties, you’ll be able to maintain your current loan tenor even if it exceeds the current tenure limits.

Borrowers Can Refinance Their Investment Property Loans

Owner-occupiers of residential properties are the focus of the latest TDSR exemption, but perhaps the ones in even more danger are the overleveraged property investors. MAS maintains that the 60% TDSR limit continues to apply to refinancing of all investment properties.

But… despite that proclamation, MAS says that it understands that some property investors need a little breathing room to “right-size” their debt obligations.

In other words, if you’re a property investor who’s an interest rate hike away from having a Fukushima-like financial meltdown, this exemption is for you:

  • MAS will give you until 30 June 2017 to refinance your investment property loans above the 60% TDSR limit under the condition that you:
    • A) must have purchased the investment property before 29 June 2013,
    • B) commit to a debt reduction plan with the bank you’re refinancing with; and
    • C) you fulfill your bank’s credit assessment.

If You’re Going to Refinance – Do It Now!

There’s no question about whether interest rates will go up. There’s only the question of when it’ll happen. Once the U.S. starts letting up on its Quantitative Easing (QE) and interest rates starts rising, it’s the overleveraged Singaporeans who will be the first to go under once the tsunami hits.

So what MAS just did was give you an early warning if you’re too close to the beach (over-leveraged). Right now you still have time to get to financial safety. So if you’re going to refinance, do it now. Thankfully, the home loan experts at Smartloans.sg can help you refinance with the best interest rate available free of charge.

Do you think the new MAS TDSR exemption is the first step towards preventing a “bubble” burst? Share your experience on Facebook! And to find even more useful information on everything personal finance, visit MoneySmart today!

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cain2143

CASE and that cup of kopi

The Independent
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CASE and that cup of kopi

By Tan Bah Bah

Unlike for public transport, price rises for a cup of kopi may not necessarily provoke a protest rally at Hong Lim. But they add up to the overall sense of helplessness of Singapore consumers in the face of sometimes arbitrary price hikes. And the organisation that is supposed to be at the vanguard of looking after their interests does not seem to be all that effective or even keen to be there.

In fact, the Consumers Association of Singapore was useful during the collapse of Five-Stars Tours only to the extent that it “helped” those affected file Small Claims Tribunal and insurance claims.  It received about 600 complaints, though 6,000 consumers were hit by the closure of the company.

It was a pretty major letdown, as Five Stars Tours was a popular Malaysian tourist bus company. CASE could have done more. The consumer body has been around since 1971. Forty three years of existence and all it could do was offer clerical assistance.

Now take the hikes in the prices of coffee sold in the kopitiams (coffeeshops) and hawker centre stalls.

There is a distinction between the hawker stalls and coffeeshops.

From what I understand, most of the coffee stalls within the hawker centres stalls in the heartlands continue to be rent-controlled. This is part of the government’s ways of keeping a lid on the cost of living.  Also, inflation can be reined in.

You can still get a cup of coffee at these stalls for 60 cents to 80 cents a cup, if you know where these stalls are, and for coffee whose quality is in no way inferior to that in the modern shopping malls.

Step away from these stalls and patronise the coffeeshops and the story is very different. Just not that long ago, you could still get a cup at 80 or 90 cents. Some foodcourt drinks kiosks are reasonable, given the cleanliess and comfort of the surrounding  – $1.20 a cup but some have become clearly exploitative. One popular chain charges $1.80 for coffee black.

The real gripe is with the coffeeshops.

One can still justify paying a certain amount of money for the convenience and environment of a foodcourt inside an air-conditioned shopping mall.

Many of these foodcourts are in malls next to MRT stations or even a bus hub.  You cannot complain. The rent is high.

And so long as there are the heartland stalls around, you have a choice of skipping these mall kiosks for the sip-and-run-territory of the ah sohs and uncles.

So far the heartland stalls are our frontline weapons in our battle against inflation and profiteering. You can have a fair meal and excellenet coffee without busting the ATM.

But the moment the other ubiquitous coffeeshops abandon their common man roots and adopt a free-for-all grab-every-cent approach, there might be a fightback by consumers.

Sometime back in the 1980s, taxi fares were jacked up arbirarily to “secure” a better lifelihood for taxi-drivers. First, the taxi-drivers suffered a massive drop in business. Second, many commuters decided to boycott taxis. They found that taking buses was so much cheaper and a large number did not return. The boycott became permanent.

A number of coffeeshops took advantage of the Chinese New Year to increase the prices of their coffee by 10 to 20 cents a cup which they will keep and not reverse. It looks like the seasonal cartel has raised its ugly head again.

CASE cannot forever hide behind its neutral-and-not-hostile-to-business stance. Time to go beyond testing and filing claims and be more activist on behalf of the rights and expectations of Singapore consumers.

For a start, it might want to draw up a list of coffeshops and stalls which have maintained and not increased their coffee prices. And publicise this list for all to read.

CASE should act more like a consumers’ lobby movement rather than a consumers’ mini kindergarten.

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