By Zach Isaiah Chia
What former Minister Raymond Lim said at his book launch last Friday deserves unemotional scrutiny. As the Internet opens a new world of uninhibited expression, it is important for Singaporeans to have the “courage to stand up to those who would tear society asunder”, he said. It was more important to “speak up and stand up for what you believe in”. He said it was “worrying that people who support the government [are pilloried and flamed]”.
It is important to understand why Singapore has come to this point of political abuse. It is only natural that when a society is bottled up for so long and when the lid is finally lifted, the citizenry will give their two cents work on everything and every person. This is the price the government is paying.
The pendulum has swung the other way for sure. This correspondent asked Lim if this was just the teething phase of a forced opening up that was happening in Singapore. He responded that “social sorting” on the Internet was prevalent and people would drift to sites that vocalised their views.
But is the Internet a purveyor of extreme views?
It generally becomes extreme when the public does not have an opportunity to express their views freely. The Internet is not a democracy. It gives the illusion of one because everyone has a voice. Actually, a hierarchy of voices exists and some voices are more influential than others.
A significant number of these influential bloggers are very rational in their discourse, even if their criticisms are cutting. Then there are public personalities such as Tommy Koh and Ngiam Tong Dow who are viewed with equal measure of respect on both sides of the divide. They are viewed as independent intellectuals.
But the problem is that the government views nearly every one who has opposing thoughts with suspicion. What is their agenda? That is a question that is still asked in the corridors of power.
The climate of trust and openness needs to be built. It is only when such openness is nurtured, that a more balanced discourse will take place, views better covered and the vitriolic minority will be relegated to the sidelines.
Lim was arguing for calibration and he is right to want that.. But for the National Discussion to self-calibrate, even flourish, in the online world the government must come to the conclusion that the Internet is not going to go away. Ways have to be found to accommodate and embrace the thoughtful voices, even if they are not pro-government. Once that happens, the so-called extremism in the Internet will be pushed to the fringes.
Raymond Lim and the Internet
New NSP boss: Now for the real work
By Mary Lee
The National Solidarity Party (NSP) yesterday returned Jeanette Chong-Aruldoss unopposed to the position of secretary-general, which was vacated when Hazel Poa stepped down for health reasons. Now that this “little formality” has been sorted out, she said, “NSP can get on with issues that affect Singaporeans and continue our outreach efforts to stay close to the ground”.
Chong-Aruldoss said NSP “hopes to inspire more good people to volunteer with us”. “There are many issues to look at and Singapore is dynamic. Things are always changing and NSP has to stay on top of things.”
Apart from working the grassroots by providing monthly free legal clinics, NSP has been speaking out on the foreign worker issue in Singapore. In a statement last month, it said: “(We welcome) the Ministry of Manpower’s announcement on 23 September 2013 on the new Fair Consideration Framework (FCF) which requires employers to consider Singaporeans fairly before hiring Employment Pass (EP) holders. For some time, opposition parties and concerned citizens have urged the Government to review its policies relating to the employment of non-Singaporeans.
“In our 2011 General Elections Manifesto, we had specifically called on the Government to grant priority to Singaporeans in employment. We are glad that the Government has heeded the call to level the playing field between Singaporeans and foreigners for job opportunities and has moved to improve employment opportunities for Singaporeans.”
But there is still work to be done in this area, according to the NSP: “Coming into force in August 2014, the FCF will only apply to the hiring of EP holders. The Ministry has justified this by saying that levies and dependency ratio ceilings will spur firms to search for suitable Singaporeans before applying for an S-pass or Work Permit (WP).
“The employer who hires a Singaporean at a salary of $2,200 (qualifying salary for S-Pass applicants) will have to pay about $350 as the employer’s portion of CPF contribution for hiring that Singaporean worker, but the employer has only to pay $300 levy for hiring a foreigner for the same job, as long as the employer remains within the quota.
“,Even if this levy will be increased to $330 in the year 2015, there is little incentive for the employers to hire Singaporeans because with the foreign worker, the employer may not have to grapple with manpower issues like staff turnover, yearly increments and increased costs related to staff benefits like four months maternity leave, National Service In-Camp Training call up, etc.
“NSP reiterates that the single largest factor that prevented the wages of the citizen workforce from rising is the large supply of foreign workers who are willing to accept lower pay, as it is very convenient for employers to have foreign workers who may not demand better wages, or take up other jobs. This undermines the natural economic forces… and (removes) the impetus for higher wage demands.”
There’s clearly enough work to keep NSP’s central executive committee busy. The CEC will be meeting on Nov 27 to elect a new vice-president, the post Chong-Aruldoss has held.
NS deferment the way to go
By Mary Lee
Swimmer Joseph Schooling’s parents should be lauded for pushing for a two-year deferment of his National Service (NS) until 2016. And Mindef needs to be praised because it has done something which it had resisted all along.
It’s about time the rigidity of NS accommodates the nation’s other aspiration — to produce world medal winners.
Sports boys and girls don’t become first-class overnight. It takes years of training to be that fit and talented. When it’s time to go into NS, they’ll still be fit enough to run up slopes with a gun and heavy backpack.
At the school level, the Ministry of Education can make a basic pass in subjects like Mathematics and English a requirement to represent the school in sports (let’s try and avoid raising dumb jocks!)
We already have the Singapore Sports School. Extending NS deferment to its most promising graduands who are good enough to represent Singapore internationally would be a logical way to incentivise our youth. After all, parents are already enrolling their pre-teens in physical training to give these children a headstart in getting direct admission to the Sports School or other schools known for excelling in a sport their child is good at.
If nothing else, NS deferment to groom potential Singaporean stars is much better than buying sportsmen and sportswomen from China with citizenship to win medals.
Kumaran Pillai: Our vote is not cheap, you need to earn it
Soon after the PAP had its worst electoral showing since Independence in 2011, George Yeo asked rhetorically: Whither Singapore?
Today, 2 1/2 years later, the question to ask is: Whither Opposition?
With the economy humming along and out-performing many other mature economies and housing prices likely to ease in the next few quarters; some feel that the PAP has gained some political ground. Needless to say the ruling party has cranked up their PR machinery.
The PM is on a charm offensive and some of his ministers, especially K Shanmugam, are at it too.
But most of the opposition party leaders are tripping up so often that disillusionment has crept in with adverse remarks about their parties being posted on their Facebook wall.
So, the key question is, has the PAP gained ground?
No, says Gerald Giam of the Workers’ Party. He says: “I think the Government has been responding to some of the concerns of the people by changing some policies and starting to fix some problems. However, I have not seen evidence among people I speak to that the PAP has gained ground. The result of the recent by-election in Punggol East seems to point to the contrary.”
According to Giam, the current issues faced by Singaporeans include high cost of living and healthcare, public transport and overcrowding.
Ravi Philemon of the National Solidarity Party says that it is hard to read the current mood of the nation and we should not see the poor turnout at Gilbert Goh’s last anti-immigrant protests held on Oct 5 as the yardstick for opposition politics.
Philemon thinks that Singaporeans are generally not “too confrontational” and we will not know the real ground sentiment until the next general election.
Certainly, the departure of Vincent Wijeysingha from national politics to pursue gay rights and the resignation of Hazel Poa as party boss from NSP does not augur well for the opposition. But Philemon said that their resignations will become a non-issue by the time the next General Elections comes around.
So, what’s next for the opposition? Who are the prime actors and movers in the years to come? What are the primary issues and strategy for opposition parties?
Frankie Low, a former Reform Party member, says that the opposition needs to consolidate before the next general election. “Otherwise, we’ll have more three- corner fights,” he says. “We don’t have the people, resources or money to write elaborate policy papers. Besides, the policy position papers may become outdated by 2016.”
The topic of opposition consolidation comes up from time to time with the likes of Tan Jee Say and Chiam See Tong taking steps to create an alliance of sorts with little success.
On the contrary, we are seeing more splits in the opposition movement. Benjamin Pwee, who contested at Bishan-Toa Payoh with Chiam See Tong, has become his own boss at the Democratic Progressive Party. And Abdul Karim has joined Singapore National Front as Secretary General to reinvigorate the party. They will be contesting in the next GE.
There has also been a lot of chatter about the formation of a third-force riding on the current wave of anti-foreigner sentiments. Chee Soon Juan, Secretary General of Singapore Democratic Party, showed up as a guest speaker at Gilbert’s anti-foreigner protest held at Hong Lim Park.
Some civil activists are concerned about Gilbert’s anti-foreigner rants online and have, in fact, openly rebuked him. Both Wijeysingha and civil activist Jolovan Wham have taken a stand against the rising tide of anti-foreigner sentiment or the “Gilbertism” that has been on the rise.
It is apparent that what started out as a protest against the Population White Paper has become a movement against immigrants in Singapore. What’s even stranger is the fact that Chee is seen “hanging out” with Gilbert when the angst against the PAP and support for Gilbert seems to be waning.
Chee is the same man who said: “A party (SDP) that truly believes in the people, one that seeks to put people before profit, wisdom before wealth and rights before riches, is one that will be on the right side of history.”
What was he thinking: being anti-foreigner and teaming up with Gilbert will put him on the right side of history? One thing for sure, Chee certainly needs a lesson in PR and image management.
There is only one opposition party that has the proven brand equity and political capital to take on the PAP. It is none other than the WP. As for the rest, I’ll be polite about it and call them the nice guys – they have their heart in the right place but not the political smarts to succeed in the short run.
While the more “media savvy” opposition politicians are doing their thing, WP’s strategy is muted. The charged-up party members at WP have been quietly working the ground instead. Giam says: “I certainly see very high energy levels in WP now. We are managing seven divisions, including one GRC and two SMCs, and our members and volunteers are working very hard on the ground to serve residents, often away from the media spotlight.”
“Our plans remain the same: To serve residents of the constituencies that we manage to the best of our abilities, and to voice out the concerns of Singaporeans in Parliament. Our MPs use many different communication channels, including regular house visits and tea sessions with residents, to better understand their needs and concerns.”
Citizens are likely to tell the political parties this: Our votes are not cheap, you need to earn it.
Who understands and acts on this will reap the benefits in the next GE.
China's air, Singapore's benefit
By Pauline D. Loh in Beijing
On a good day, you can see a clear sky and the Western Hills in the distance. That’s when Beijingers whip out their iPhones, take a picture and post it on their Weibo or microblog. That’s because blue skies are getting rare, and rarer in the capital city.
On a good day, the PM2.5 reading hovers around the low 30s to maybe 40. It is a reading that refers to the density of particles with a diameter of less than 2.5 microns and a reading of under 25 is considered healthy but anything over 100 is not. A PM 2.5 reading of 300 or more is definitely hazardous to health.
So hazardous, in fact, that it is prompting expatriate families in Beijing to ask for transfers … to Singapore.
Singapore may be plagued by the occasional haze from forest fires of neighboring countries around this time, but compared to the all-year smog that envelopes Beijing, it is an island paradise full of fresh air.
A Dutch family had their baby girl born in Beijing on a day when the PM 2.5 reading hit the mid-300s. The young parents were rightly worried about how their baby would be affected. By the time the baby was one, they decided it was too much of a risk and they asked for a transfer.
“That’s why we ended up in Singapore, it’s extremely better, our doors are open all the time.”
They are not alone. International headhunters are having difficulty finding the right candidates to fill positions for MNCs based in Beijing. Already a hardship post in terms of language and corporate cultures, now there is the additional risk of an unhealthy living environment.
An annual survey by the European Chamber of Commerce in Beijing highlights the problems.
The chief challenge named by members taking part in the study was the living environment, which 42 per cent said affected the retaining of expatriate talent.
Beijing’s bad air reputation has travelled far. When the European Chamber of Commerce presented a position paper in Europe recently, the usual concerns on regulatory issues were tossed aside. Instead, the focus was on “what is going on with the living environment in China in terms of the air pollution and the difficulties in finding the right people”.
It is a growing problem, according to Ivo Hahn, managing director for greater China in the Beijing office of recruitment company Stanton Chase International.
“Air pollution and environmental pollution come up very often,” says Hahn. “I have a case even in our own office of somebody, an overseas staff member, requesting to be transferred and his concern is purely pollution.”
But where does the smog come from?
Since 2008 when Beijing hosted the Olympics, the Herculean task of cleaning the stables meant many factories were moved from Beijing to Shijiazhuang, the capital of Hebei Province, about 300km upwind to the north.
Wind has become an important element. It brings the smog, but it also clears the smog to allow Beijingers that brief glimpse of blue skies.
The capital city is surrounded by hills on three sides that trap the smog once it gathers. Only grade 4 to 6 strength winds can blow it away. For a while, that is.
There have been many theories on why the smog gathers even when the wind blows. Beijing’s gridlocked traffic spews out enough particulates seven days a week, from morning to night, and there are still millions in the queue for an entitlement number to buy a car.
Chinese cuisine has been blamed, for its open fire cooking methods. Although that is really hard to take seriously.
A Dutch designer has now suggested a solution: A smog vacuum cleaner that will suck up the particulates in the air and turn them into a gel that he says can be processed and made into jewellery.
Somewhere, some time, there is going to be a whole range of trinkets waiting for the right people to buy them.
Getting an EC vs. BTO Flat: What are the Differences?
Why does everyone assume you’re rich if you buy an EC? That doesn’t make sense. By the time you make the down payment and cover the installments, the EC means you’re pretty much the opposite of rich. Here’s a run-down on the painful differences, when you choose an EC over a BTO flat:
Why Executive Condominiums are Different
Executive Condominiums (ECs) are another class of “sandwich” flats, like maisonettes or DBSS flats. They cater to a higher class of poor people: those who can afford better than public housing, but still can’t afford private property. And it would appear that this number is not an insignificant number, with nearly 2,500 units sold as at August this year.
Unlike BTO flats, ECs are built by private developers. They are built by the same companies that put up “real” condominiums, with vast expertise in architecture, lifestyle accommodation, and pretentious French words. And while ECs begin as subsidised housing, they all turn into private housing after 10 years.
This results in four main differences, compared to BTO flats:
- No HDB Concessionary Loan
- Resale Rules from the 11th Year Onward
- Fewer ECs are in Mature Estates
- Less Predictable Resale Value
1. No HDB Concessionary Loan
If you buy an EC, you need to use a bank loan. We have an article on that, but here’s a quick recap:
A private bank loan only covers 80% of the valuation. Of the remaining 20%, up to 15% can come from grants and your CPF. That means ECs have an absolute minimum of 5% down payment in cash.
For a BTO flat, you have the option of a HDB concessionary loan. That’s why buyers of a BTO flat can have $0 down payments.
If you need more help understanding bank loans, or finding a cheap one, get free comparisons and apply for a loan at SmartLoans.sg.
2. Resale Rules from the 11th Year Onward
And by the time we can sell the condo, it will be just enough to pay for PSLE tuition. Perfect.This is where ECs differ the most value as compared to BTO flats.
From their sixth to 10th years, ECs are sold like regular resale flats; only Singaporeans and Permanent Residents (PRs) can buy them. But from the 11th year, ECs go “fully private”. They can then be sold to foreigners and companies. This is a big deal, because it opens up the range of prospective buyers.
The downside is that, when buying resale ECs after the 11th year, buyers can no longer get housing grants for them. They are well and truly private property by then.
According to Kenneth Kok, who invests in properties in Singapore and Malaysia, this “can make a big difference in resale value.”
“Under the new rules, PRs have to wait three years before they can buy a resale flat”, Kenneth says, “But after 11 years, your EC is private property, so PRs can buy without waiting.”
Kenneth adds that the eligibility of foreign buyers also helps:
“In general, a bigger pool of prospective buyers bodes well for capital gains. If you are selling a resale flat, you have no chance of tapping into foreign demand for local properties.”
3. Fewer ECs are in Mature Estates
“I don’t understand why pizza delivery avoids my place in Woodlands.”Maybe the builders assumed that, if you can afford an EC, you can afford a car. Whatever the reason, many ECs are located in places where you’d expect to see pack mules or a passing jungle expedition.
“A lot of ECs are not in mature estates,” cautions Charlie Sng, a local landlord, “they tend to be in places like Punggol or Woodlands. In 11 years, maybe those places will be more developed. But for now, you should consider the convenience issues of staying there.”
Charlie suggests you consult the Urban Redevelopment Authority’s (URA) Master Plan, if you’re worried about resale value.
“If you are about comfortable living,” he adds, “Don’t just think about barbeque pits and condo clubhouses. Those will be small consolation, when you need to choose between buying a car or a one hour commute to work.”
4. Less Predictable Resale Value
This is where the debate starts. ECs are new as a property type, so there’s a lot of argument about their resale value. The main question is this one:
Will ECs sell for the same value as private condos?
There are two opposing camps on this. Kenneth feels that “There is no reason why they will not…
…ECs are built by private developers; they have the same amenities and same quality of finishing. That they are subsidised at the start is completely irrelevant. Why will this matter to future buyers?”
Charlie, however, thinks there is a psychological barrier to EC prices.
“Based on the mindset of the market, I don’t think it will be easy to sell an EC as if it were a real condo,” he says, “The fact is, the thinking of most Singaporeans is that ECs are one level ‘below’ condos. They may not be able to accept that they have to buy ECs at the same price as real private property.”
Regardless, both investors agreed that the market is too new; we’ll have to wait for a few years, and see what happens when all the ECs start hitting the open market. Also, both Charlie and Kenneth agreed that most ECs will appreciate better than their BTO counterparts.
“An EC is bought at a subsidised price, but sold like a condo,” Charlie says, “and some more they can be sold on the open market, where PRs don’t have to wait and foreigners are eligible to buy. How not to win in capital gains?”
Image Credits:
alantankenghoe, kodomut, kifo, ggalice,
Source: http://www.moneysmart.sg/housing-property/getting-an-ec-vs-getting-a-bto-flat-what-are-the-differences/
Taxi Flag-Down Rates Go Up: What’s the Real Reason?
Singapore’s taxi rates are the Bermuda Triangle of finance. If we could replicate them in the stock market, the US would have been celebrating a surplus last July. They have the magical tendency to go only upward, despite nigh-invisible improvements in service and availability.
“Uncle, stop here. I think my second mortgage ran out 200 metres ago”.
How Have Rates Gone Up?
Flag-down rates have risen for new taxi models. Because “What we want are new, more expensive taxis” claimed Singaporeans everywhere, according to the cab company’s imagination.
Some examples are ComfortDelGro’s Hyundai i40, with a flag-down rate of $3.70. SMRT’s Toyota Prius has a flag-down rate of $3.80 (because when you have a hybrid electric designed to use less fuel, it makes sense to charge more for trips.)
Trans-Cab’s Renault Latitude is the most exorbitant, with a flag-down charge of $3.90. For more details, see the coverage on Yahoo!
Over time, existing cabs will be phased out and replaced by these models. After which, the flag-down rates will be restored to their previous levels.
And also, bacon is fat free. Seriously, rates will stay at their wallet-gouging levels, because have you met cab company management? Somali pirates would accuse them of being too mercenary.
The Reasons We Think Flag-Down Rates are Going Up
In our opinion (and opinion only), these are why flag-down rates are really going up:
- Incentivise More Pick-ups
- Lack of Serious Competition
- Less Affordable Private Transport
1. Incentivise More Pick-Ups
Availability’s a big issue with cab companies. They get assigned COEs based on how available their taxis are; and the more cabs they have, the more money they make.
Problem is, our cab drivers pick up fewer people than a syphilitic drunk in a trendy nightclub. Remember, these people are pretty much self-employed. If they happen to be retirees with a paid-up home loan, they can afford to earn less.
So if one of them decides to queue up at Changi airport all day, and go home after six passengers, what can the cab companies can do?
Since they’re lacking a stick, they’re using a bigger carrot. A higher flag-down fee means more earnings per customer, and hopefully, better availability. This “strategy” is focused on raising the fees so high, even a jaded retiree will bother to start picking people up.
Maybe instead of doing that, they should, I dunno, hire a competent Human Resource manager? How’s that? This is what an interview is for. Weeding out the driven ones who really need the job (and there are plenty of cab drivers who genuinely work hard.)
2. Lack of Serious Competition
Eh, it’s a free market and you have a choice okay?When one cab company raises its price, all the other cab companies follow suit. There’s no threat of a competitor undercutting them by retaining its fares.
(Can you imagine if all the Telcos did that? The people at CASE would burst an artery).
Thing is, a cab company can’t compete that way even if it wanted to. See, a cab company’s revenue doesn’t come from the fees they charge you. Their money comes from renting out their cabs. The drivers pay a rental fee for the use of the cab, and anything they make is theirs to keep.
In short, the drivers are more like clients than employees. And if a company insists their drivers charge less, their drivers will simply join another cab company (thus reducing the company’s rental revenues).
Because of this, all cab companies tend to move in tandem. When one raises fares, the others pretty much have to follow, or risk losing drivers.
3. Less Affordable Private Transport
Pictured: Private transport for the middle class.If you’re taking a cab to get somewhere, chances are it’s because the bus or MRT won’t do. Too slow, the area is inaccessible, etc. So what’s your solution?
Buy a car? I doubt so, considering we have one of the most expensive car markets in the world.
Which leads to the same issue in point 2. Cab companies exist with little or no fear of boycott. Short of disparaging Facebook remarks, there’s nothing you can do about it.
Why Quibble Over a Small Increase?
Obviously, the worry isn’t that a cab ride costs 30+ cents more. The worry is the structure of the taxi industry; there are few checks against its upward price spiral.
Perhaps what we need are more cab companies, without raising the number of COEs set aside for them. The squeeze will prompt a more enthusiastic business approach from cabbies. Otherwise, we might want to reconsider the whole cab rental system.
Image Credits:
David Sifry, tallkev, Vasenka Photography, Lagomorpha,
Source: http://www.moneysmart.sg/money-talks/taxi-flag-down-rates-go-up-whats-the-real-reason/
The End of the US Shutdown (and How it Could Still Affect Us)
So, this week the US avoided a historic default on their debt, with US President Barack Obama passing a bill that ended a 16-day government shutdown. What this really means for the layman is significant: everyone can go watch the Panda Cam at the Smithsonian again (I’m sure we in Singapore can all empathise, eh?). While we won’t know fully what economic calamities would have befallen us should the default have happened, an explanation of the shutdown and some basic preparations for the near future are in order:
Quickie Explanation: How Does a Shutdown Happen Anyway?
There are two general models of democracy: the Washington model, and the Westminster model.
Each model divides government into three arms:
- An executive (proposes new plans, policy shifts, laws, etc.)
- A legislature (either accepts or rejects what the executive proposes)
- A judiciary (once the proposals are passed by the legislature, these guys enforce them)
The division of power ensures that no single arm of government can seize control of the country. The executive can only propose, but not approve. The legislature can only approve, but not propose anything new, etc.
In the Westminster model (which Singapore follows), our executive and legislature are joined. Our executive (the Prime Minister and his Cabinet) also get to vote in Parliament. So they can both propose and approve.
That’s different from the Washington model. President Obama (the executive) is separate from Congress and the Senate (the legislature). The US President doesn’t get to vote in either of those. So he couldn’t just step in and force his budget through.
Also, the US has a bicameral legislature. For President Obama’s proposals to be approved, they have to be okay’ed by both the US Congress and Senate*. It’s a bit tougher than Singapore’s unicameral system, where Parliament is our only layer for approval.
Right now, President Obama has majority support in the Senate, but not in Congress. Hence, his budget got blocked. The conservatives in Congress didn’t want to fund his healthcare scheme, so they threatened to keep the budget blocked until the President backed down.
(*Congress has proportional representation. The bigger the state, the more representatives it has. The Senate has just two representatives per state, regardless of population.)
What are the Consequences?
The budget funds the civil service in the United States. Blocking it threatened the pay of several hundred thousand civil servants, including those in health care, emergency services, administration, etc.
The wider threat, which has now passed, was debt default: if the budget hadn’t passed, the US debt ceiling wouldn’t have been raised. This would have caused some US debts to be written off, and further downgrade the country’s credit worthiness.
What is the Impact?
Let’s compromise! It’s is the best way to settle anything!Did you invest heavily in equities or the US dollar? If you did, it was like having the train you’re on hijacked by morons who can’t drive it. Even though the shutdown is over, there are ripple effects:
- It impacts QE tapering
- It may funnel investments into emerging markets
- Potential rise in market volatility
- May drive further investments into gold
1. It impacts QE tapering
Quantitative Easing (QE) is a US fiscal policy that’s meant to stimulate their economy. This is mostly done by aggressively buying back US Treasury bonds, hence putting more US dollars into circulation.
QE was expected to “taper off” this year, as the US economy improved. But the shutdown may have stalled that. Broker Jeremy Foo says:
“While their government is shut down, they don’t have anyone running the data. And so as long as they have no economic data, they probably won’t decide to initiate QE tapering. The shutdown may have stalled QE tapering from 2013 to 2014. That could keep interest rates (He means for loans – ed.) down for a while more.”
2. It may funnel investments into emerging markets
Emerging Markets: Invest manure and reap profit (i.e. the reverse of US Treasury Bonds right now).With the US looking more and more like a three-legged horse, some investors have begun looking for alternatives.
“I have shifted some of my investments to Emerging Market (EM) bonds,” investor Eugene Poir told me, “Even with the shutdown over, you can see the interest rates on US treasury bonds are rising. It will be very much more expensive for the US to borrow now.
I think now the US is not infallible like we imagine. At least with EM bonds I know the risk comes with better returns. With the US, I don’t know. Returns are not as good, and we can see this sort of crisis also happens.”
3. Potential rise in market volatility
Jeremy seems to echo Mr Poir’s sentiments, on the issue of risk aversion. Expect some wild swings in the market, in the coming months.
“The government in the US has just gotten back up, and companies are still tallying the costs,” Jeremy says, “If there has been an impact in someone’s supply chain, or sales were affected, we will find out in short order. Expect to see that whipsaw pattern on your charts…”
(Whipsaw = when a security’s price rises or falls quickly, and then moves back to its original price just as fast)
4. May drive further investments into gold
The seminars stop short of telling you to melt them into a giant ox, and start worshiping it.Gold enthusiasts are already jumping on this. It’s more historical evidence to suit their investing beliefs. Charlie Sng, who avowedly invests only in property and gold, says:
“This is another reason you should not invest in paper money. Even the world’s most secure currency is subject to this kind of risk. In a matter of weeks, something you have no control over can wipe you out.”
Admittedly, that’s a bit of an extreme view, but Jeremy admits that:
“It does present a case for gold or other alternative investments. Just diversify your portfolio. Don’t put all your eggs in one basket, because you cannot predict when this sort of crazy thing will happen.”
Image Credits:
Glyn Lowe Photoworks, 1 Million Views, Thanks, tiarescott, Images_of_Money, digitalmoneyworld
Source: http://www.moneysmart.sg/money-talks/the-end-of-the-us-shutdown-and-how-it-could-still-affect-us/
Whither the CCAs in our schools?
By Bernard Pereira
I look at the list of Schools’ CCAs (co-curricula activities) today and I begin to wonder where Singapore sport is headed.
Where in the past, we used to focus our sights on the loftiest ideal, the Olympics, or, failing that, the Asian Games, or at least the SEA Games, today I’m not so sure anymore.
What, with games like tchoukball, frisbee, rope-skipping and floorball in our schools sports diet? I am truly floored!
None of the four is an Olympic sport, to start with! With games like these, who needs Olympic or Asian Games champions?
And to think we fell head over heels in love with people like Ang Peng Siong, Junie Sng and Joscelin Yeo, all swimmers, and Chee Swee Lee in track and field in the Seventies, Eighties and Nineties.
For the record, they were all still schooling when they registered some of their biggest achievements for Singapore.
Swee Lee won the 400m gold medal in the Asian Games in 1974. Peng Siong won his gold medal in the 1982 Asian Games’ 100m freestyle. Junie won two golds in the 400m and 800m backstroke in the 1978 Asian Games when she was just 14!
Was it any surprise our minds then had a common trajectory. We were all tuned to the Olympic ideal. Nothing less.
Of course, we still have swimming, football, track and field, hockey, badminton, table-tennis and a host of others played in schools today. Then, why don’t we just focus our sights on these sports? Or better still, choose a select few in which we feel we can excel.
Because talent in a city-state of only 5.3mil – which includes 1.5mil foreigners who are not eligible to represent us – is a prime commodity, and should only be channelled into activties that can reap world-class Olympic-based honours.
Lest we forget, in such competitions, we’ll be pitted against countries with massive talent bases, like China, with 1.4bil population, or Japan (127mil) or UK (64mil). Against such odds, we need the creme de la creme of our talented crop.
Otherwise, why dangle the Singapore National Olympic Council cash carrots for gold, silver and bronze medals in the Olympics, Asian Games and SEA Games? Who are those rewards for? Might as well take them down if the schools – our breeding ground for raw talent – are not on the same wavelength as our National Sports Associations and SNOC.
Now, I am not denigrating those newly-introduced sports. Nor the people connected to their introduction. Not at all.
I’m sure every one of these games has its own merits – each ultimately with its own world championship, too. But you’d have to agree that they are simply not in the same league or pedigree as the Olympics or Asiad.
Having said that, I’m befuddled as to why the NSAs and Singapore Schools Sports Council are not moving in tandem. Shouldn’t this call for a meeting of minds to decide once and for all the one common direction we are taking to international sports honours?
Look at it this way: You can continue to have tchoukball, frisbee, rope-skipping and floorball in the schools.
But please, hands off the young Olympic sports talents. They should be nurtured only for the key sports, like swimming, badminton, hockey and whatever other Olympic sport we know we can excel in.
Efforts to get a statement from national sports organisations, such as Singapore Sports Council, Singapore Schools Sports Council and even the Ministry of Social and Family Development, drew a blank.
Ms Charlotte Chen Ting Ying, MOE Corporate Communications Executive, however, drew attention to the MOE webpage on CCA “for more information on CCAs in our schools.”
“Students who are keen on an activity not offered in school may obtain their school’s approval to start their own activities. This gives students the chance to pursue their specific interests or ideas, and expands the range of activities available in school. Students may also participate in community-based activities, to help nurture the spirit of social enterprise and enhance their links with the community at large,” a statement from the webpage read.
A Minister called Shanmugam and a puppy called Tammy
K Shanmugam’s involvement in a dispute between the rescuer of a dog and its adopter has thrust the Law and Foreign Minister into the spotlight again.
Not all are surprised because he has also met people involved in gay/lesbian issues and those with housing and other social problems. All these meetings have made their way into his Facebook and finally into the newspapers and TV channels.
Even Shanmugam’s recent effort to help an accident victim became a full-page report, accompanied by pictures, in The New Paper.
Singaporeans are not used to seeing their ministers resolving issues like this with the publicity machine in tow. So when a minister springs up and publicises his actions in Facebook and they then make the news, it is only normal for speculation to take over.
Why is he doing this? Doesn’t he have other more pressing matters to tackle?
Singaporeans are also not used to their ministers stepping into issues that don’t come under these politicians’ purview.
How will the other ministers feel? Is the PM ok with this?
There is no doubt that Shanmugam’s image is getting a makeover. And he seems to be making some headway with the sceptical types. Even a lady who is known to be anti-establishment liked his most recent Facebook post on Tammy.
The minister with a perpetual smile might continue to get more likes. But the real question is whether these likes will translate into more votes for his party, come the next GE. If it does, then Shanmugam is headed for big things.