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seletar

15-02-13, 23:18

http://www.guardian.co.uk/world/2013/feb/15/singapore-crisis-immigration-financial-crisis

Singapore protest: 'Unfamiliar faces are crowding our land'

The island nation's government faces unprecedented dissent towards an immigation plan to increase its population by 30%

Kate Hodal (http://www.guardian.co.uk/profile/kate-hodal)
guardian.co.uk (http://www.guardian.co.uk/), Friday 15 February 2013 11.19 GMT

Liane Ng is 25 and single, works 60 hours a week, and until recently, shared a bedroom with her grandmother. Like many other Singaporeans, her life revolves around work, family and the stress of making ends meet in a nation that works the longest hours in the world. But lately her life has taken on a more immediate concern: a government initiative to increase Singapore (http://www.guardian.co.uk/world/singapore)'s population by a third by 2030, a move that would see citizenship granted to more foreigners and squash the native population to just over half the total.

"I love my country," says the advertising executive. "[But] the cost of living is high, the income gap is widening, transport is failing and unfamiliar faces are crowding our land. People are getting increasingly fed up because our daily lives are affected."

Singapore has long been heralded as the success story of south-east Asia, a small island nation less than half the geographical land size of Greater London that in just 50 years has transformed from colonial backwater to one of the world's most formidable economic powerhouses.

But that gain has come at increasing cost. Skyrocketing housing prices, overcrowding, long working hours, low birth rates and an ageing population – that the government terms Singapore's "silver tsunami" – are all major contributors to discontent often been focused on the country's rapid immigration.

The city-state currently has a population of 5.3 million, and is now more densely populated than Hong Kong. Under a government white paper – which was approved last week despite widespread public anger – Singapore will aim to increase its population to 6.9 million people over the next 20 years by granting permanent residency to 30,000 people and allowing an inflow of some 25,000 new citizens every year. New social programmes, including marriage and parenthood initiatives, as well as infrastructure schemes, will accommodate the burgeoning population, with immigration calibrated to retain its current ethnic ratios.

"We are producing too few babies (http://www.todayonline.com/singapore/sporeans-are-centre-all-our-plans), our society is ageing, and if we do nothing, our population will soon start shrinking," said Singapore's prime minister Lee Hsien Loong.

"Singapore must continue to develop and upgrade to remain a key node in the network of global cities, a vibrant place where jobs and opportunities are created."

It is the government's focus on Singapore's economy, rather than its people, that has stirred much of the public's discontent. Singapore is the third most expensive city in Asia.

The ruling People's Action Party (Pap), in power since independence in 1965, is seemingly on a one-track mission to maintain its own rule, despite having heavily lost a recent byelection and potentially standing to lose more, says Singapore expert Michael Barr of Australia's Flinders University.

"Pap has always presented itself as a party above vested interests … [but] that is not washing anymore," says Barr.

"Just like a multinational company's CEO has bonuses tied to the rise and fall of share prices, ministers and civil servants have bonuses tied to economic growth in Singapore. And we're talking about million-dollar bonuses here and more, so there's a lot at stake."

Dissent over the white paper has been huge. Social media, newspapers, blogs and even parliament itself have been rife with commentary, and a rare public protest – with over 3,500 already planning to attend – has been scheduled for Saturday (https://www.facebook.com/events/162959550518581/). "There is this fear that foreigners will eventually replace and take over our country," explains protest organiser Gilbert Goh, who hopes for a referendum. "There is no known employment protection for local workers here – people can be easily replaced at the workplace … [and] workers have been known to be replaced by foreigners, as many employers are now foreigners as well."

Racial tensions already run high, not least between the ethnic Chinese, Malay and Indian Singaporeans who already make up the city-state, but also among new immigrants, says Barr.

Some of that tension is due to the country's focus on economics rather than culture. Local opposition politician Nicole Seah, who ran as the youngest female candidate in the 2011 general elections, recently said that the "Singapore Inc" brand cultivated by the government has created a "transient state where people from all over come, make their fortunes and leave (http://sg.news.yahoo.com/blogs/singaporescene/why-oppose-white-paper-nicole-seah-015700474.html)".

She added: "The policies over the past decades have created an erosion of our social roots, widespread resentment, and a loss of who we are as Singaporeans. We have been taught to prioritise money-making practicality over what it means to have a solid culture."

The bubbling discontent in Singapore has recently been compounded by a string of scandals causing some outsiders to wonder if the Asian utopia so carefully crafted by the nation's so-called founder, Lee Kuan Yew, is finally crumbling. Most young professionals still live at home because they can't afford to move out, the government has had to subsidise speed-dating schemes to encourage partnerships, and abortion rates among married women now account for over half the total – as many families struggle to stay afloat.

"The government does not give allowance for people who are different from them and this is one of the reasons why we are so politically and creatively stunted," says Ng. "My perspective is, I'm different, I don't want to toe the line, and that's why we have to speak up and push through until something happens."

basically

16-02-13, 05:17

Bush Was a Total Disaster … Obama Is WORSE
February 15th, 2013

basically

16-02-13, 05:18

National Debt Passes $16.5 Trillion
February 15th, 2013

basically

16-02-13, 05:19

Obama Wants to Close Thousands of Businesses & Raise Unemployment
February 15th, 2013

basically

16-02-13, 05:20

60% Greek Youth Unemployment
February 15th, 2013

basically

16-02-13, 05:21

Soros Makes $1 Billion Since November on Currency War
February 15th, 2013

basically

16-02-13, 05:22

Europe Woes Deepen as Economies Contract
February 15th, 2013

basically

16-02-13, 05:24

The Global Endgame: The Dollar’s Days As The Preeminent Currency Are Coming To An End And Escalating Currency Wars Are Throwing The World Into Chaos And Retaliation
February 15th, 2013

basically

16-02-13, 05:25

THE START OF 2008 ALL OVER AGAIN? Wal-Mart Says February Sales “Total Disaster”, Worst Monthly Start Since 2006, European Economic Data Disappointing, Two Billion Unemployed or Given Up Job Search Worldwide
February 15th, 2013

dare2

16-02-13, 06:08

Thats why I already know long ago.. U need >50% by 2015.. & >60% by 2016.. In order to breakeven..

Your long term rental already cost your saving$$ to reduce by almost 10% each year :D

MR B overlooked.....
... if everyone hold tight tight...how to crash?

hyenergix

16-02-13, 06:32

I'm finding less bad financial news in Internet in recent months, so chances are we are on track to a better economy this year. However I'm quite concerned about coming currency devaluation war and inflation. After CNY, prices seem to have crept up a bit more.

Rysk

16-02-13, 09:06

MR B overlooked.....
... if everyone hold tight tight...how to crash?
TWIST & TURN cum DIVERT ATTENTION EXPERT MR. B had advised all moron to hold tight tight when Luxus Hills 1.6-mio in 2008... continue to advise to hold tight tight till now Luxus Hills 3-mio..

Thank you MB B.. :cool-punk-headbange

:D

phantom_opera

16-02-13, 09:54

|
Beware, another 10y, Mr B will be camping under overhead highway or MRT track as proposed by HK academics :eek:

香港地少人多，住宅单位长期供不应求。有团体发起“天桥底行动”，建议特区政府修例，在全港天桥底下大建临时房屋，以纾缓劏房（即房中房）和笼屋的问题。
　不过，有为香港政府提供房屋政策建议的人士认为，兴建房屋首先要考虑空气质素问题，因此这个建议的可行性不高。
　近年香港楼价不断攀升，反映当地二手楼价走势的中原城市领先指数，昨天报121.73点，按周上升0.88%，再创历史新高。
　香港房地产业界人士普遍认为，香港地少人多，每年推出的住宅单位数量远远满足不了市场需求，是造成当地楼价由2009年初至今持续攀升主要原因。
　面对上述难题，有香港团体开始打全港近2000座行车及行人天桥的主意。来自工联会的立法会议员陈婉娴，联同中文大学建筑学院副教授郑炳鸿和文化人胡恩威，在前天宣布成立“天桥底行动”，推动善用天桥底下空间。
　胡恩威指出，特区政府兴建公屋需要时间，如果在天桥底下建临时屋，只需数个月时间，可以迅速安置劏房、笼屋等居住环境恶劣的住户。此外，天桥底也可以兴建临时青年宿舍。

kane

16-02-13, 10:42

dare2

16-02-13, 19:18

.....Mr B posts seemed to be fluxing between constipation and diarrhea.......

Rysk

16-02-13, 19:34

.....Mr B posts seemed to be fluxing between constipation and diarrhea.......
Unlike last time.. this time around TWIST & TURN cum DIVERT ATTENTION EXPERT MR B dare not make any more predictions as proven it was a FAILURE.. now only lan lan act blur post just the title in big red font.. hoping it will scare ppl off & quickly sell cheap cheap to him

Rysk

16-02-13, 19:45

25th Nov 2011

no $800 psf no buy....can get it in 2-3 yrs time....

MISSED THE BOAT EXPERT MR B had promised us.. end of 2013 onwards.. River Valley pty will crash to $800psf..

Those who are keen.. please standby your cheque by Oct 2013..

If you can't find your RV dream units at $800psf never mind.. MR B had promised that he will "top-up" the different for us :banana:

Rysk

16-02-13, 20:46

25th Nov 2011

MISSED THE BOAT EXPERT MR B had promised us.. end of 2013 onwards.. River Valley pty will crash to $800psf..

Those who are keen.. please standby your cheque by Oct 2013..

If you can't find your RV dream units at $800psf never mind.. MR B had promised that he will "top-up" the different for us :banana:

MR B had promised us that condo/apt at RV from $1.5-2k psf now.. will crash to $800psf from between end 2013 to end 2014.. I'm keen on The Cosmopolitan :banana:

seletar

16-02-13, 22:24

http://sg.news.yahoo.com/huge-turnout-at-speakers--corner-for-population-white-paper-protest-101051153.html;_ylt=AreU2C7FOITAAlj5yxsKdycCV8d_;_ylu=X3oDMTNycWxlczQ2BG1pdANNZWdhdHJvbiBTaW5nYXBvcmUEcGtnAzdkZmIzNTY1LWQwMTEtMzgwNi05YmUyLTE4NjY1ZjA4MGVlMQRwb3MDMgRzZWMDbWVnYXRyb24EdmVyAzBlYzUyM2QzLTc4NGEtMTFlMi05NzdmLTFkZmI3YzA2ZGEzNA--;_ylg=X3oDMTFuZGgwbmp1BGludGwDc2cEbGFuZwNlbi1zZwRwc3RhaWQDBHBzdGNhdANzaW5nYXBvcmUEcHQDc2VjdGlvbnM-;_ylv=3

4,000 turn up at Speakers' Corner for population White Paper protest

http://l1.yimg.com/bt/api/res/1.2/JyIKXkigGHkXJpStnaEpkg--/YXBwaWQ9eW5ld3M7Zmk9Zml0O2g9MjA-/http://media.zenfs.com/246/2011/03/17/ynewslogo-071424_075919.png
Yahoo! Newsroom – 16 Feb 2013

http://l1.yimg.com/bt/api/res/1.2/qHzLo127FRl3Z4RcJV3oFQ--/YXBwaWQ9eW5ld3M7Y2g9NjAxO2NyPTE7Y3c9ODAxO2R4PTA7ZHk9MDtmaT11bGNyb3A7aD00NzI7cT04NTt3PTYzMA--/http://l.yimg.com/os/publish-images/news/2013-02-16/aa3012a6-120e-41ea-9c8d-7aa0eac291b5_PWPprotest.jpg (http://sg.news.yahoo.com/photos/an-estimated-4-000-turn-up-for-the-protest-despite-a-steady-drizzle-photo--478615858.html;_ylt=Av.GVHUQahW9kBrthyPSd2H9Vsd_;_ylu=X3oDMTQ1YmMwcjUxBG1pdANBcnRpY2xlIFJlbGF0ZWQgTGVhZARwa2cDMWY0ODM0ZWUtYWRjOC00YmYwLTg4NTctYzg4OTg5NDM4MWIxBHBvcwMxBHNlYwNNZWRpYUFydGljbGVMZWFkBHZlcgNiNzFlZGIwOS03ODQ3LTExZTItOGRiNy04ZTI2ZDAwMjRmNjA-;_ylg=X3oDMTJqcnBmaHU0BGludGwDc2cEbGFuZwNlbi1zZwRwc3RhaWQDN2RmYjM1NjUtZDAxMS0zODA2LTliZTItMTg2NjVmMDgwZWUxBHBzdGNhdAMEcHQDc3RvcnlwYWdl;_ylv=3)

Yahoo! photo - An estimated 4,000 turn up for the protest despite a steady drizzle.

An estimated crowd of 4,000 people gathered at the Speakers' Corner at Hong Lim Park on Saturday afternoon to protest against Population White Paper which was endorsed by Parliament last week.

[SEE SLIDESHOW] (http://sg.news.yahoo.com//photos/population-white-paper-protest-at-speakers-corner-slideshow/)

Organised by transitioning.org (http://www.transitioning.org/about-2/), a support site for unemployed, the nearly four-hour protest saw people of all age ranges and races turn up in the light drizzle, with umbrellas and some with home-made, colourful placards and posters. Many also came with young children and kids in tow.

While organisers put the official figure at 4,000, others compared the size of the crowd to that of Pink Dot 2013 (http://sg.news.yahoo.com/record-high-of-about-15k-s%E2%80%99poreans-turn-out-for-pink-dot.html), in which close to 15,000 took part.

A total of 12 speakers, including former NTUC chief Tan Kin Lian, former presidential candidate Tan Jee Say, SDP's Vincent Wijeysingha, NSP's Jeanette Chong-Aruldoss also spoke at the event, mainly to hit out at the 6.9 million population figure mentioned in the White Paper.

Each speaker was given 10 minutes to address the crowd.

The peaceful protest was marked by poignant moments when the crowd sang "Count On Me, Singapore" at the midway mark, and also at the end when the National Pledge was lustily recited in unison.

Organiser Gilbert Goh told Yahoo! Singapore he was pleased with the turnout. Calling the protest "history-making, he said he initially only expected 200 to show.

"This protest event is meant for Singaporeans to come here in a peaceful manner to show their displeasure at the 6.9 million population target," he said.

"We also wanted to show Singaporeans that there's a place for you to come to legitimately protest against any policy that you have against the government. You don't have to sit behind Facebook and complain. You can show up in unity, in person to complain," he added.

http://l2.yimg.com/bt/api/res/1.2/cXQL7RQcJ4AksOBNLHMMzg--/YXBwaWQ9eW5ld3M7Y2g9NjAxO2NyPTE7Y3c9ODAxO2R4PTA7ZHk9MDtmaT11bGNyb3A7aD00NzM7cT04NTt3PTYzMA--/http://l.yimg.com/os/publish-images/news/2013-02-16/c99bf68b-b9a5-4959-b78a-db8704a25aa1_PWPprotest4.jpg

http://l2.yimg.com/bt/api/res/1.2/fvD4XeAJJtP8uEsmDlX04w--/YXBwaWQ9eW5ld3M7Y2g9NjAxO2NyPTE7Y3c9ODAxO2R4PTA7ZHk9MDtmaT11bGNyb3A7aD00NzM7cT04NTt3PTYzMA--/http://l.yimg.com/os/publish-images/news/2013-02-16/d9154e77-f700-4adc-a715-a2413990dc8c_PWPprotest2.jpg

http://l.yimg.com/bt/api/res/1.2/teCBy0SCALXudjI8U5LVfQ--/YXBwaWQ9eW5ld3M7Y2g9NjAxO2NyPTE7Y3c9ODAxO2R4PTA7ZHk9MDtmaT11bGNyb3A7aD00NzM7cT04NTt3PTYzMA--/http://l.yimg.com/os/publish-images/news/2013-02-16/10110f82-d684-423d-8004-2e031413b4c5_PWPprotest5.jpg

seletar

16-02-13, 22:30

http://www.bloomberg.com/news/2013-02-16/singaporeans-protest-plan-to-increase-population-by-immigration.html

Singaporeans Protest Plan to Increase Population by Immigration

By Shamim Adam - Feb 16, 2013 6:49 PM GMT+0800

Thousands of Singaporeans demonstrated today against a government plan to increase the island’s population through immigration, saying the policy will erode the national identity and threaten their livelihoods.

Protesters gathered at Speakers’ Corner at Hong Lim Park (http://www.nparks.gov.sg/cms/index.php?option=com_visitorsguide&task=parks&id=67&Itemid=73) at the edge of the city’s financial district on a rainy afternoon, many dressed in black and carrying signs opposing the plan. Lawmakers from Prime Minister Lee Hsien Loong (http://search.bloomberg.com/search?q=Lee%20Hsien%20Loong&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1&partialfields=-wnnis:NOAVSYND&lr=-lang_ja)’s ruling party last week endorsed a white paper that outlined proposals including allowing more foreigners through 2030 to boost the workforce.

Today’s rally increases pressure on the government to slow an influx of immigrants that has been blamed for infrastructure strains, record-high housing and transport costs and competition for jobs. Singapore’s population has jumped by more than 1.1 million since mid-2004 to 5.3 million, stoking social tensions and public discontent that is weakening support for Lee’s People’s Action Party.

“The size of the crowd shows people are angry,” said Tan Jee Say, a candidate in Singapore’s 2011 presidential election, who joined the protest. “It will send a signal to the government and I hope it will react in a sensible way and see that people are concerned. The government should not push the white paper down Singaporeans’ throats.”

‘Not Herded’

Organizers estimated that more than 3,000 people joined the demonstration at the 0.94-hectare (2.3-acre) park that served as a venue for political rallies in the 1950s and 1960s. They sang patriotic songs. Some signs demanded a referendum on the white paper, while others said “we want to be heard, not herded,”and “waiting for 2016,” when the next general election is due.

Members of the opposition say the government’s policy to spur economic growth through immigration isn’t sustainable.

There may be as many as 6 million people in Singapore by 2020, and the government will boost infrastructure to accommodate a population of 6.9 million by 2030, according to the white paper that was published last month.

The government will take in between 15,000 and 25,000 new citizens and grant about 30,000 permanent-resident permits annually, according to the paper titled “A Sustainable Population for a Dynamic Singapore.”

Left Behind

Protesters expressed unhappiness with the policy that could see citizens, including new ones, making up only one of every two people on the island smaller in size than New York City by the end of the next decade should the population reach 6.9 million. Singapore is the third-most expensive Asian city to live in and the sixth globally, according to an Economist Intelligence Unit ranking (http://www.eiu.com/Handlers/WhitepaperHandler.ashx?fi=FINAL_WCOL_February_2013.pdf&mode=wp&campaignid=Wcol2013) of 131 cities around the world published this month.

“Instead of increasing the population of this country so quickly, maybe we should focus on those that have been left behind,” said Sudhir Vadaketh, author of “Floating on a Malayan Breeze,” a socio-economic narrative on Singapore and Malaysia. “A lot of Singaporeans are feeling a great sense of loss of identity. With continued high immigration, I worry about that sense of identity being diluted even more.”

Demonstrations in Singapore are rare as the government imposes strict controls on assemblies and speeches, limiting outdoor protests to locations such as Speakers’ Corner. Authorities say such laws help maintain social stability in a country that was wracked by communal violence between ethnic Malays and Chinese in the 1960s.

Shrinking Workforce

Speakers’ Corner was modeled after the section of London’s Hyde Park traditionally set aside for free speech.

The white paper was aimed at setting a framework to address Singapore’s demographic challenges of an aging population and a shrinking workforce. The island-nation’s first cohort of baby boomers turned 65 last year, and its number of elderly will triple to 900,000 by 2030, according to the National Population and Talent Division.

In a city with 3.3 million citizens and 2 million foreigners, complaints about overseas workers depriving locals of jobs (http://www.bloomberg.com/quote/SIQUTOTA:IND) and driving up home prices helped opposition parties win record support in the 2011 general election. Lee is under pressure to placate voters without disrupting the entry of talent and labor that helped forge Southeast Asia’s only advanced economy (http://www.bloomberg.com/quote/SGDYTY:IND).

Ranked the easiest place to do business for seven straight years by the World Bank, Singapore is competing with lower-cost neighbors such as Malaysia and Indonesia for foreign investment as an uneven global recovery hurts demand for exports.

Since the 2011 polls, Lee’s party has lost two by-elections. The government “paid a political price” with the infrastructure strains as a result of a bigger population, the prime minister said last month.

To contact the reporter on this story: Shamim Adam in Singapore at [email protected] ([email protected])

seletar

16-02-13, 22:41

http://www.tremeritus.com/2013/02/16/msm-launch-offensive-to-pursuade-people-on-need-for-fts/

MSM launch offensive to pursuade people on need for FTs (http://www.tremeritus.com/2013/02/16/msm-launch-offensive-to-pursuade-people-on-need-for-fts/)

February 16th, 2013

Media push on need for foreign workers to help SMEs ignores other factors that hike up cost of doing business.

AS the government was pushing for a larger population of immigrants, a media effort was being launched to persuade people on the need for more foreign workers.

A spate of reports told of how local businesses were suffering as a result of a shortage of workers.

It was clearly to reinforce the official “open door” line to help Singapore’s small and medium enterprises (SMEs), an important segment of the economy.

It wasn’t something that serious journalists – East or West – would normally do: Leaving out important parts of a national story to slant its angle.

The reports said that some 40% of the 6,000 SMEs were suffering because of the shortage. No reference to the real threat of rising business costs

According to the reports, three in 10 SMEs (defined as having S$1-S$10mil turnover) were considering moving away from Singapore or closing down because of manpower shortage.

The government had reduced approval rates for imported workers in the wake of public anger that too many foreigners are taking away local jobs and over-crowdedness.

These reports were half the truth. The shortage was indeed a serious obstacle to SMEs but far from being the most threatening.

That was the climbing cost of doing business in Singapore, with factors including the following:

• High property rents. These contracts are generally revised after two or three years and property prices in land-short Singapore had risen by 50% in the last four years;
• Cars. Singapore is also one of the most expensive places in the world to buy a car or truck. A certificate of entitlement (COE) – costing up to S$100,000 (RM250,300) that lasts only 10 years – is necessary before buying a vehicle; a motorist is charged electronically-deducted road fees during peak hours.
• The employer is also hit with levies for workers whom he employs, not to mention indirect taxes for supplies like Goods and Services Tax (GST).

So indirectly, the biggest woes to the SME are inflicted not by worker shortage, but by government policies and Singapore’s rising affluence that has significantly raised the cost of doing business.

With a per capita GDP of US$56,500 (RM174,700) the republic has become one of the richest cities in the world.

Last week the Economist Intelligence Unit reported that Singapore is now the sixth most expensive city in the world.

It climbed three places from a year ago, beating Zurich into seventh place. In Asia, the Republic ranks third – next to Tokyo and Osaka.

The high cost of living – and doing business – is one of the biggest sources of worry among Singaporeans.

Last year 61% of people said in a survey that this was their top worry. For businessmen, this, too, applies.

The recent media reports were not wrong in saying the SMEs suffer from the tight workers market.

Traditionally, they have been a big consumer of manpower, employing 70% of Singaporean workers.

The fact is that many SMEs, including restaurants, retailers and small contract firms, are marginal operators.

In the past decade many were forced out of business for reasons other than insufficient workers.

In my neighbourhood centre, nearly half the coffee shops have shut down in the past few years, forced out by high rentals and replaced by shops selling higher value products.

Two were re-rented out for higher rates to a bank and a mini-mart.

Increasingly some of Singaporeans’ favourite hawker foods have become extinct, including goreng pisang (fried bananas) and rojak. A vendor has to sell a large amount of both in order to pay for current rents.

The “Mom-and-Pop” provision shop has long been driven out of existence by the arrival of large supermarkets which could afford today’s business costs. Their disappearance had nothing to do with shortage of workers since most were operated by family members. The main culprits were high rents and changing tastes.

Not everyone may be sad to see them go provided these once-upon-a-time SMEs have found profitable alternative businesses.

The biggest spoiler is spiralling rents.

A friend of mine who operates a cake shop in the centre of Singapore has to fight frequent battles against rising rentals of his premises.

In 2010, a year after Singapore’s recession, his landlord served notice that rentals were to increase by 50%. After negotiations, the hike was reduced to one-third.

The uncertainty of rents is the biggest worry of small businessmen not any shortage of workers, he said.

“If the economy is good and rents are stabilised, we can survive the competition,” he told me.

Singapore had Asia’s most expensive hotels last year despite a 2% drop in room rates.

What is happening in Singapore had been anticipated more than 20 years ago.

As a journalist, I had attended numerous press conferences in which the government had talked about economic restructuring and business innovation to overcome worker shortage.

The former Prime Minister Lee Kuan Yew had talked frequently about how as Singapore became prosperous, their operational costs would increase and competitiveness drop.

Singapore was following the way of advanced economies like the US and Europe, which began moving their manufacturing to Asia.

Singapore does not have enough workers to compete with large countries like China and India, Lee often told us.

In the 70s and 80s, Singapore had an average of seven jobs to every Singaporean applicant.

But his stand was “Let’s bite the bullet. Persuade the investors to go to Batam and Johor, and we move up-market,” I remember him saying.

Seah Chiang Nee

Chiang Nee has been a journalist for 40 years. He is a true-blooded Singaporean, born, bred and says that he hopes to die in Singapore. He worked as a Reuters corespondent between 1960-70, based in Singapore but with various assignments in Southeast Asia, including a total of about 40 months in (then South) Vietnam between 1966-1970. In 1970, he left to work for Singapore Herald, first as Malaysia Bureau Chief and later as News Editor before it was forced to close after a run-in with the Singapore Government. He then left Singapore to work for The Asian, the world’s first regional weekly newspaper, based in Bangkok to cover Thailand and Indochina for two years between 1972-73. Other jobs: News Editor of Hong Kong Standard (1973-74), Foreign Editor of Straits Times with reporting assignments to Asia, Europe, Africa, the Middle East and The United States (1974-82) and Editor of Singapore Monitor (1982-85). Since 1986, he has been a columnist for the Malaysia’s The Star newspaper. Article first appeared in his blog, http://www.littlespeck.com.

teddybear

17-02-13, 01:28

I had already said long ago and for many times, the commercial and industrial properties markets are in bubble and need cooling measures! however, these has not been done. Instead, we see cooling measures consecutively only for the private residential property market only... These people are probably not living on the ground to know where the bubble really is!

http://www.tremeritus.com/2013/02/16/msm-launch-offensive-to-pursuade-people-on-need-for-fts/

MSM launch offensive to pursuade people on need for FTs (http://www.tremeritus.com/2013/02/16/msm-launch-offensive-to-pursuade-people-on-need-for-fts/)

February 16th, 2013

Media push on need for foreign workers to help SMEs ignores other factors that hike up cost of doing business.

AS the government was pushing for a larger population of immigrants, a media effort was being launched to persuade people on the need for more foreign workers.

A spate of reports told of how local businesses were suffering as a result of a shortage of workers.

It was clearly to reinforce the official “open door” line to help Singapore’s small and medium enterprises (SMEs), an important segment of the economy.

It wasn’t something that serious journalists – East or West – would normally do: Leaving out important parts of a national story to slant its angle.

The reports said that some 40% of the 6,000 SMEs were suffering because of the shortage. No reference to the real threat of rising business costs

According to the reports, three in 10 SMEs (defined as having S$1-S$10mil turnover) were considering moving away from Singapore or closing down because of manpower shortage.

The government had reduced approval rates for imported workers in the wake of public anger that too many foreigners are taking away local jobs and over-crowdedness.

These reports were half the truth. The shortage was indeed a serious obstacle to SMEs but far from being the most threatening.

That was the climbing cost of doing business in Singapore, with factors including the following:
• High property rents. These contracts are generally revised after two or three years and property prices in land-short Singapore had risen by 50% in the last four years;
• Cars. Singapore is also one of the most expensive places in the world to buy a car or truck. A certificate of entitlement (COE) – costing up to S$100,000 (RM250,300) that lasts only 10 years – is necessary before buying a vehicle; a motorist is charged electronically-deducted road fees during peak hours.
• The employer is also hit with levies for workers whom he employs, not to mention indirect taxes for supplies like Goods and Services Tax (GST).

So indirectly, the biggest woes to the SME are inflicted not by worker shortage, but by government policies and Singapore’s rising affluence that has significantly raised the cost of doing business.

With a per capita GDP of US$56,500 (RM174,700) the republic has become one of the richest cities in the world.

Last week the Economist Intelligence Unit reported that Singapore is now the sixth most expensive city in the world.

It climbed three places from a year ago, beating Zurich into seventh place. In Asia, the Republic ranks third – next to Tokyo and Osaka.

The high cost of living – and doing business – is one of the biggest sources of worry among Singaporeans.

Last year 61% of people said in a survey that this was their top worry. For businessmen, this, too, applies.

The recent media reports were not wrong in saying the SMEs suffer from the tight workers market.

Traditionally, they have been a big consumer of manpower, employing 70% of Singaporean workers.

The fact is that many SMEs, including restaurants, retailers and small contract firms, are marginal operators.

In the past decade many were forced out of business for reasons other than insufficient workers.

In my neighbourhood centre, nearly half the coffee shops have shut down in the past few years, forced out by high rentals and replaced by shops selling higher value products.

Two were re-rented out for higher rates to a bank and a mini-mart.

Increasingly some of Singaporeans’ favourite hawker foods have become extinct, including goreng pisang (fried bananas) and rojak. A vendor has to sell a large amount of both in order to pay for current rents.

The “Mom-and-Pop” provision shop has long been driven out of existence by the arrival of large supermarkets which could afford today’s business costs. Their disappearance had nothing to do with shortage of workers since most were operated by family members. The main culprits were high rents and changing tastes.

Not everyone may be sad to see them go provided these once-upon-a-time SMEs have found profitable alternative businesses.

The biggest spoiler is spiralling rents.

A friend of mine who operates a cake shop in the centre of Singapore has to fight frequent battles against rising rentals of his premises.

In 2010, a year after Singapore’s recession, his landlord served notice that rentals were to increase by 50%. After negotiations, the hike was reduced to one-third.

The uncertainty of rents is the biggest worry of small businessmen not any shortage of workers, he said.

“If the economy is good and rents are stabilised, we can survive the competition,” he told me.

Singapore had Asia’s most expensive hotels last year despite a 2% drop in room rates.

What is happening in Singapore had been anticipated more than 20 years ago.

As a journalist, I had attended numerous press conferences in which the government had talked about economic restructuring and business innovation to overcome worker shortage.

The former Prime Minister Lee Kuan Yew had talked frequently about how as Singapore became prosperous, their operational costs would increase and competitiveness drop.

Singapore was following the way of advanced economies like the US and Europe, which began moving their manufacturing to Asia.

Singapore does not have enough workers to compete with large countries like China and India, Lee often told us.

In the 70s and 80s, Singapore had an average of seven jobs to every Singaporean applicant.

But his stand was “Let’s bite the bullet. Persuade the investors to go to Batam and Johor, and we move up-market,” I remember him saying.

Seah Chiang Nee

Chiang Nee has been a journalist for 40 years. He is a true-blooded Singaporean, born, bred and says that he hopes to die in Singapore. He worked as a Reuters corespondent between 1960-70, based in Singapore but with various assignments in Southeast Asia, including a total of about 40 months in (then South) Vietnam between 1966-1970. In 1970, he left to work for Singapore Herald, first as Malaysia Bureau Chief and later as News Editor before it was forced to close after a run-in with the Singapore Government. He then left Singapore to work for The Asian, the world’s first regional weekly newspaper, based in Bangkok to cover Thailand and Indochina for two years between 1972-73. Other jobs: News Editor of Hong Kong Standard (1973-74), Foreign Editor of Straits Times with reporting assignments to Asia, Europe, Africa, the Middle East and The United States (1974-82) and Editor of Singapore Monitor (1982-85). Since 1986, he has been a columnist for the Malaysia’s The Star newspaper. Article first appeared in his blog, http://www.littlespeck.com.

Ringo33

17-02-13, 01:42

proud owner

17-02-13, 10:51

.....Mr B posts seemed to be fluxing between constipation and diarrhea.......

i am just very curious

you joined in Dec 2012 ....

yet you comment like you have been around long enough to know the history of Mr B ... ?

are you another forummer who post with many names ?

dare2

17-02-13, 12:53

i am just very curious

you joined in Dec 2012 ....

yet you comment like you have been around long enough to know the history of Mr B ... ?

are you another forummer who post with many names ?

...you are funny....
.....is this a closed forum where non-registered member could not read?

teddybear

17-02-13, 14:27

Mapletree? Oh right, Is Mapletree earnings lots of money from commercial and industrial properties bubble?

They are living up in the mapletree

seletar

17-02-13, 14:38

http://www.nbcnews.com/id/50831722/ns/business/

Rare Singapore protest against population plan

By FARIS MOKHTAR
http://msnbcmedia2.msn.com/i/msnbc/Components/Sources/Art/APTRANS.gif
updated 2/16/2013 1018 AM ET

http://msnbcmedia2.msn.com/j/ap/singapore%20population%20protest-1950502835_v2.grid-6x2.jpg
Singaporeans gather at their speakers' corner in a protest against a paper passed in parliament last week that suggests continued immigration that would raise the total population to 6.9 million by 2030, a 30 percent increase, on Saturday Feb. 16, 2013 in Singapore. The paper was aimed at alleviating the falling birth rate and aging population has been met with much criticism as Singapore copes with a swell of immigrants that already tax current infrastructure and has caused much unhappiness among citizens. (AP Photo/Joseph Nair)

SINGAPORE (http://www.bing.com/maps/?v=2&where1=SINGAPORE&sty=h&form=msdate) — Nearly 3,000 people held a rare rally in Singapore on Saturday to protest a government plan to increase the city-state's population by admitting more foreigners, voicing concerns that it will worsen already strained public services and push up the cost of living.

Such demonstrations are rare in the Southeast Asian country, known for its image of political stability and efficient governance, with the ruling People's Action Party stifling opposition voices and placing tight controls on public protests.

The chief organizer of the rally, Gilbert Goh, said the protest was a display of citizens' unhappiness over the population plan, which was endorsed in parliament on Feb. 8. "They want to tell the government, please reconsider this policy. The turnout is a testimony that this policy is flawed and unpopular on the ground," he said.

According to the plan, the government will bolster infrastructure and social programs to accommodate a projected population of 6.5 million to 6.9 million by 2030 — a marked increase from the current population of 5.3 million. Of the projected 2030 population, non-foreigners would form between 3.6 and 3.8 million, slightly more than half of the total.

The issue triggered five days of intense debate in parliament, with both opposition and some PAP legislators expressing concerns that an immigration inflow would hurt public infrastructure and dilute the Singaporean identity. But the plan was eventually approved by a wide majority.

The plan to admit more new citizens comes amid government concerns that the current population will not help ensure the economy remains robust, as Singapore grapples with a falling birthrate and aging baby boomers.

"In my view in 2030, I think 6 million will not be enough to meet Singaporeans' needs as our population ages because of this problem of the baby boomers and bulge of aging people," Prime Minister Lee Hsien Loong said in parliament on Feb. 8, adding that 6.9 million was not a target but a number to be used to help plan for infrastructure.

Although Singapore continues to bring in hundreds of thousands of immigrants from countries such as Indonesia and China to work as maids and construction workers, it also attracts thousands of higher-income foreigners who find the country's high standard of living and stability appealing.

But the influx has strained public services, with complaints of transport overcrowding, and caused property prices to escalate, sparking concerns among locals about the rising cost of living and fostering a deep resentment toward foreigners.

"Immigrants come at such a fast pace that they're not able to assimilate," said Samantha Chia, 32, one of the rally speakers. "It's unfair for them as well and a lose-lose situation."

Although economic prosperity has turned Singapore into a bustling metropolis, critics have noted the government's continuous pursuit of growth at all cost.

"We want the government to put the vast resources that are at their disposal at the service of us, the people," said one of Saturday's protesters, Vincent Wijeysingha, a university lecturer and member of the opposition Singapore Democratic Party. "Because we are not machines and our neighborhoods are not factories, and our island is not a hotel."

teddybear

17-02-13, 14:40

Why so many people don't look like native singapore citizens to me? Looks like races not native to Singapore? :scared-3:

http://www.nbcnews.com/id/50831722/ns/business/

Rare Singapore protest against population plan

By FARIS MOKHTAR
http://msnbcmedia2.msn.com/i/msnbc/Components/Sources/Art/APTRANS.gif
updated 2/16/2013 1018 AM ET

http://msnbcmedia2.msn.com/j/ap/singapore%20population%20protest-1950502835_v2.grid-6x2.jpg
Singaporeans gather at their speakers' corner in a protest against a paper passed in parliament last week that suggests continued immigration that would raise the total population to 6.9 million by 2030, a 30 percent increase, on Saturday Feb. 16, 2013 in Singapore. The paper was aimed at alleviating the falling birth rate and aging population has been met with much criticism as Singapore copes with a swell of immigrants that already tax current infrastructure and has caused much unhappiness among citizens. (AP Photo/Joseph Nair)

SINGAPORE (http://www.bing.com/maps/?v=2&where1=SINGAPORE&sty=h&form=msdate) — Nearly 3,000 people held a rare rally in Singapore on Saturday to protest a government plan to increase the city-state's population by admitting more foreigners, voicing concerns that it will worsen already strained public services and push up the cost of living.

Such demonstrations are rare in the Southeast Asian country, known for its image of political stability and efficient governance, with the ruling People's Action Party stifling opposition voices and placing tight controls on public protests.

The chief organizer of the rally, Gilbert Goh, said the protest was a display of citizens' unhappiness over the population plan, which was endorsed in parliament on Feb. 8. "They want to tell the government, please reconsider this policy. The turnout is a testimony that this policy is flawed and unpopular on the ground," he said.

According to the plan, the government will bolster infrastructure and social programs to accommodate a projected population of 6.5 million to 6.9 million by 2030 — a marked increase from the current population of 5.3 million. Of the projected 2030 population, non-foreigners would form between 3.6 and 3.8 million, slightly more than half of the total.

The issue triggered five days of intense debate in parliament, with both opposition and some PAP legislators expressing concerns that an immigration inflow would hurt public infrastructure and dilute the Singaporean identity. But the plan was eventually approved by a wide majority.

The plan to admit more new citizens comes amid government concerns that the current population will not help ensure the economy remains robust, as Singapore grapples with a falling birthrate and aging baby boomers.

"In my view in 2030, I think 6 million will not be enough to meet Singaporeans' needs as our population ages because of this problem of the baby boomers and bulge of aging people," Prime Minister Lee Hsien Loong said in parliament on Feb. 8, adding that 6.9 million was not a target but a number to be used to help plan for infrastructure.

Although Singapore continues to bring in hundreds of thousands of immigrants from countries such as Indonesia and China to work as maids and construction workers, it also attracts thousands of higher-income foreigners who find the country's high standard of living and stability appealing.

But the influx has strained public services, with complaints of transport overcrowding, and caused property prices to escalate, sparking concerns among locals about the rising cost of living and fostering a deep resentment toward foreigners.

"Immigrants come at such a fast pace that they're not able to assimilate," said Samantha Chia, 32, one of the rally speakers. "It's unfair for them as well and a lose-lose situation."

Although economic prosperity has turned Singapore into a bustling metropolis, critics have noted the government's continuous pursuit of growth at all cost.

"We want the government to put the vast resources that are at their disposal at the service of us, the people," said one of Saturday's protesters, Vincent Wijeysingha, a university lecturer and member of the opposition Singapore Democratic Party. "Because we are not machines and our neighborhoods are not factories, and our island is not a hotel."

seletar

17-02-13, 14:45

http://sg.finance.yahoo.com/news/large-crowd-braves-rain-denounce-130300142.html

Large crowd braves rain to denounce Singapore population plan

http://l1.yimg.com/bt/api/res/1.2/FZN6924R0WZ__x92.x6.GA--/YXBwaWQ9eW5ld3M7Zmk9Zml0O2g9Mjc-/http://media.zenfs.com/en_us/News/logo/reuters/d0c3eb8ca18907492a4b337b5cec5193.jpeg (http://www.reuters.com/)
Reuters – 16 Feb 2013

* Critics say immigration policy paper could change the island's character

* Protesters denounce income disparaties

* Ruling party has suffered dents to popularity

By Kevin Lim and Teo Jion Chun

SINGAPORE, Feb 15 (Reuters) - At least 4,000 people braved showers to stage one of Singapore's largest ever protests on Saturday, a further sign of discontent over immigration policies and growing income disparities under the long-ruling People's Action Party (PAP).

Parliament in the highly regimented city state last week approved a white paper that said the island's population of 5.3 million could grow by as much as 30 percent to 6.9 million by 2030, mostly through foreign workers to offset a chronically low birth rate.

Critics say the island is already too crowded, with a population density exceeding that of rival Asian business centre Hong Kong. They blame the flood of foreigners over the past decade for stagnant wages, crowded trains and rising prices that put housing beyond the reach of the average Singaporean and say further inflows would change the very nature of the island.

Uniformed police were all but absent at the rally at Speakers' Corner in a park on the edge of Singapore's glitzy financial district -- exempt from strict controls on assembly.

"You cannot bring in foreigners to compete with your people when you do little to look after them," said Leong Sze Hian, a financial planner, blaming lax immigration for stagnating real wages.

"It's not just low wage earners who are suffering. Median incomes are affected too and that's the people in the middle," he told Reuters.

Tan Kin Lian, former CEO of Singapore's largest insurance firm, told the rally that Singaporeans needed "adequate wages, dignity in employment for all sectors of the workforce. Wages must be enough to raise a family."

Singapore, with a land area of 714 square km (275 sq miles), is one of the of the world's wealthiest countries with a per capita GDP of $50,000.

It has been ruled since independence in 1965 by the PAP, credited with transforming the island from a British colonial outpost into a global business centre with clean streets, an efficient civil service and the world's highest concentration of millionaires.

INCOME INEQUALITY

Income inequality is among the highest in the developed world, however, and many Singaporeans struggle on an average monthly wage of about S$4,100 ($3,300). The cost of housing has doubled over the past decade and the cheapest new car costs about S$110,000 due to taxes aimed at curbing vehicle ownership.

The PAP holds 80 of 87 elected seats in parliament despite recent electoral setbacks, including a dip in its share of the popular vote to about 60 percent in the 2011 general election.

As the rally proceeded, authorities said former prime minister Lee Kuan Yew, the driving force behind Singapore's development and father of the current prime minister, was being treated in hospital for an irregular heart beat. It said Lee, 89, had recovered but would remain in hospital for a few days.

Authorities remain wary of social upheaval. A wildcat strike last year by bus drivers brought to Singapore from China, the first such work stoppage since 1986, led to the deportation of more than 20 of the strikers.

The government says without new immigrants, the working-age population will start shrinking in 2020 while the total number of Singaporeans will begin to decline in 2025.

The paper has prompted worries that further immigration could alter the character of the island.

Singaporeans acccount for 62 percent of 5.3 million residents, down from 75 percent in 2000 and the government plans to give citizenship to between 15,000 and 25,000 foreigners each year. Based on the white paper, the percentage of Singaporeans, including new citizens, will shrink to 55 percent by 2030.

Tan Jee Say, a former top civil servant turned opposition politician who also addressed the protest, accused the PAP of being obsessed with economic growth and ignoring the social costs of its immigration policy.

"The white paper will completely change the character of our nation -- not just for 18 years but forever," he said.

(Reporting by Kevin Lim; Additional reporting by Jion Chun Teo; Editing by Ron Popeski)

seletar

17-02-13, 14:59

http://www.scmp.com/news/asia/article/1152046/singapore-protest-population-policy-biggest-independence

Singapore protest biggest since independence

In rare show of anger, crowd voices opposition to policy of increasing immigrant numbers

South China Morning Post
Toh Han Shih in Singapore
Sunday, 17 February, 2013, 12:00am

http://www.scmp.com/sites/default/files/styles/486x302/public/2013/02/17/b0fa7fbaf751e1e9d1298715d0b19a39.jpg (http://www.scmp.com/sites/default/files/styles/980w/public/2013/02/17/b0fa7fbaf751e1e9d1298715d0b19a39.jpg)

http://www.scmp.com/sites/default/files/styles/486x302/public/2013/02/17/2d497263a1b199d4ddfcb9112ab91819.jpg (http://www.scmp.com/sites/default/files/styles/980w/public/2013/02/17/2d497263a1b199d4ddfcb9112ab91819.jpg)

Thousands of Singaporeans braved drizzle to attend a rally yesterday to oppose the government's plan to increase the population by bringing in more foreigners - a rare example of protest in the tightly controlled city state.

An organiser, Kwan Yew Keng, estimated that 3,000 people took part, making it the biggest demonstration in Singapore since it gained independence in 1965, barring election rallies.

Rally leaders, who used Facebook and other online platforms to organise participants, openly attacked the People's Action Party (PAP), which has been in power for more than 50 years and controls 80 of the 87 seats in parliament after losing two byelections in the past year.

"The large crowd here shows the PAP government that they [the protesters] are not afraid any more. They don't want to hide behind a moniker on Facebook to show their displeasure," said one of the organisers, Gilbert Goh, a former opposition candidate for parliament.

One sign, apparently directed at Singapore Prime Minister Lee Hsien Loong, read: "Ah Loong sweetheart, 6.9 (million) is a kinky number, but quality, not quantity," referring to his comment that the country's population could reach 6.9 million by 2030. A speaker at the rally, Kumaran Pillay, said he wanted his country to be led by "a man with vision" and did not want Singaporeans' lives to be controlled by "number Nazis".

Another speaker, Sem Teo, a banking executive, said: "Singaporeans should stop being afraid and speak up for change."

Rally participant Tan Jee Say, an ex-civil servant now in opposition who ran for president in 2011, said: "The prime minister has failed us. Make way for a new prime minister."

Additional reporting by Agence France-Presse

seletar

17-02-13, 15:02

http://edition.cnn.com/2013/02/16/world/asia/singapore-protest-immigrants/index.html?iref=allsearch

Singaporeans protest plans to increase immigration

By Liz Neisloss, CNN
February 16, 2013 -- Updated 1406 GMT (2206 HKT)

(CNN) -- Singaporeans don't normally gather in public protest. Decades of single party rule and an iron hand when it comes to dissent has shaped a somewhat meek public. But a proposal by the government to allow more immigrants to come to Singapore in the next few decades to make up for a population shortfall has emboldened citizens to go public.

On Saturday, several thousand Singaporeans gathered in a small downtown park near an area known as "Speaker's Corner" to vent their anger. Organizers estimated the crowd to between 3,000 and 4,000 and said it was the largest gathering since post-independence Singapore in 1965. Singapore police told CNN they don't give crowd estimates.

At the heart of the issue is a so-called "White Paper on Population" recently issued by the government that proposes allowing the population to rise from 5.3 million to as high as 6.9 million by 2030 in order to keep the economy growing and to keep it a magnet country for business.

The government also says foreigners are needed to take care of the country's own rapidly aging population.

Protesters on Saturday insisted they didn't fear foreigners but worry about the loss of Singaporean jobs to foreigners, depressed wages and overcrowding that has taxed Singapore's infrastructure, including housing and transportation. Protesters also say the government's plans will make them a minority in their own country.

"Imagine a place where you can be a stranger in your own home," a protester said.

Like many developed nations, not enough people are having babies. For more than three decades, the country's fertility rate has been below replacement level, meaning Singaporeans aren't having enough babies to replace themselves. This has had a huge impact on a tiny country striving to be a booming economy.

The government has relied on foreigners to fill executive ranks, as well as to perform low-wage jobs from construction to cleaning. While the country is one of the world's wealthiest, it also has an enormous income disparity between rich and poor. Protesters say Singaporeans would have more babies if they were more confident of their economic prospects, and that the government should rely less on cheaper foreign labor and improve the wages of Singaporeans.

seletar

17-02-13, 15:59

http://www3.nhk.or.jp/daily/english/20130217_02.html

Singaporeans protest new immigration plan

NHK World

Thousands of Singaporeans have staged a rare protest against a plan to accept more immigrant workers. The government claims the move is necessary because the birth rate has declined to 1.2 children per woman.

Immigrants currently account for nearly 40 percent of Singapore's population of 5.3 million. Last month, the government announced a plan to raise the total to 6.9 million citizens by 2030.

An NGO addressing job security issues organized the event and used social media to invite participants. The group says about 4,000 people gathered on Saturday in a central city square.

Citizens complained that an influx of immigrants is causing real estate prices and education costs to soar. Meanwhile, they say the quality of services is deteriorating at hospitals and public transportation systems. They feel that accepting more immigrants would put too much pressure on people's lives.

Some participants said it's unbelievable that the government plans to accept one million more immigrants. Others said they are angry with the government for not listening to public opinion. Organizers plan to coordinate more public demonstrations.

Large public protests are rare in Singapore because political activities are strictly regulated under the single party rule.

Feb. 17, 2013 - Updated 00:01 UTC (09:01 JST)

lajia

17-02-13, 16:03

Why don't u create another thread call Bad News....just a suggestion if u can hear.

http://www3.nhk.or.jp/daily/english/20130217_02.html

Singaporeans protest new immigration plan

NHK World

Thousands of Singaporeans have staged a rare protest against a plan to accept more immigrant workers. The government claims the move is necessary because the birth rate has declined to 1.2 children per woman.

Immigrants currently account for nearly 40 percent of Singapore's population of 5.3 million. Last month, the government announced a plan to raise the total to 6.9 million citizens by 2030.

An NGO addressing job security issues organized the event and used social media to invite participants. The group says about 4,000 people gathered on Saturday in a central city square.

Citizens complained that an influx of immigrants is causing real estate prices and education costs to soar. Meanwhile, they say the quality of services is deteriorating at hospitals and public transportation systems. They feel that accepting more immigrants would put too much pressure on people's lives.

Some participants said it's unbelievable that the government plans to accept one million more immigrants. Others said they are angry with the government for not listening to public opinion. Organizers plan to coordinate more public demonstrations.

Large public protests are rare in Singapore because political activities are strictly regulated under the single party rule.

Feb. 17, 2013 - Updated 00:01 UTC (09:01 JST)

lajia

17-02-13, 16:05

I cannot imagine nowadays the uncle so innovative, can design such nice t-shirt and so free to do such....:confused: :eek:

http://www.scmp.com/news/asia/article/1152046/singapore-protest-population-policy-biggest-independence

Singapore protest biggest since independence

In rare show of anger, crowd voices opposition to policy of increasing immigrant numbers

South China Morning Post
Toh Han Shih in Singapore
Sunday, 17 February, 2013, 12:00am

http://www.scmp.com/sites/default/files/styles/486x302/public/2013/02/17/b0fa7fbaf751e1e9d1298715d0b19a39.jpg (http://www.scmp.com/sites/default/files/styles/980w/public/2013/02/17/b0fa7fbaf751e1e9d1298715d0b19a39.jpg)

http://www.scmp.com/sites/default/files/styles/486x302/public/2013/02/17/2d497263a1b199d4ddfcb9112ab91819.jpg (http://www.scmp.com/sites/default/files/styles/980w/public/2013/02/17/2d497263a1b199d4ddfcb9112ab91819.jpg)

Thousands of Singaporeans braved drizzle to attend a rally yesterday to oppose the government's plan to increase the population by bringing in more foreigners - a rare example of protest in the tightly controlled city state.

An organiser, Kwan Yew Keng, estimated that 3,000 people took part, making it the biggest demonstration in Singapore since it gained independence in 1965, barring election rallies.

Rally leaders, who used Facebook and other online platforms to organise participants, openly attacked the People's Action Party (PAP), which has been in power for more than 50 years and controls 80 of the 87 seats in parliament after losing two byelections in the past year.

"The large crowd here shows the PAP government that they [the protesters] are not afraid any more. They don't want to hide behind a moniker on Facebook to show their displeasure," said one of the organisers, Gilbert Goh, a former opposition candidate for parliament.

One sign, apparently directed at Singapore Prime Minister Lee Hsien Loong, read: "Ah Loong sweetheart, 6.9 (million) is a kinky number, but quality, not quantity," referring to his comment that the country's population could reach 6.9 million by 2030. A speaker at the rally, Kumaran Pillay, said he wanted his country to be led by "a man with vision" and did not want Singaporeans' lives to be controlled by "number Nazis".

Another speaker, Sem Teo, a banking executive, said: "Singaporeans should stop being afraid and speak up for change."

Rally participant Tan Jee Say, an ex-civil servant now in opposition who ran for president in 2011, said: "The prime minister has failed us. Make way for a new prime minister."

Additional reporting by Agence France-Presse

seletar

17-02-13, 16:13

http://news.xinhuanet.com/english/world/2013-02/16/c_132172546.htm

Large crowd turns up for rare protest against population white paper in Singapore

Xinhua
English.news.cn (http://www.xinhuanet.com/english2010/) 2013-02-16 21:44:05

http://news.xinhuanet.com/english/world/2013-02/16/132172546_11n.jpg
Thousands of residents attend a protest against the White Paper on Population at Singapore's Hong Lim Park in Singapore, Feb. 16, 2013. The Singapore government is looking to grow its population to between 6.5 million and 6.9 million by 2030, from the current 5.31 million, according to the White Paper on Population. (Xinhua/Then Chih Wey)

SINGAPORE, Feb. 16 (Xinhua) -- A large crowd braved a drizzle to gather at the Speakers' Corner in Singapore on Saturday in a rare protest against a government white paper on population.

The crowd began to gather in the afternoon for the protest organized by Gilbert Goh, a 51-year-old known as an unemployment counselor. Organizers lined up a list of 12 speakers, including activists and opposition party members.

Organizers said close to 5,000 turned up for the protest, which has been rare in Singapore, but local daily Lianhe Zaobao put the number of the people at the gathering at over 3,000.

Many came with umbrellas, braving the light drizzle in the afternoon. One of the banners reads, "Save Singapore -- Say No to 6.9 million," referring to a projection of the population in the city state by 2030.

The White Paper on Population, released recently by the government, projected that the population may grow to between 6.5 million and 6.9 million by 2030, from the current 5.38 million. It says that the government may need to raise the total fertility rate and have 15,000 to 25,000 immigrants per year.

The number 6.9 million made headlines. Many voiced their concerns for continuing to grow the population as it is already getting crowded on the commuter trains and buses.

The crowd shouted "No" when the first speaker, National Solidarity Party member Ravi Philemon, asked if it was acceptable to bring in 900,000 to 1 million foreigners every decade.

http://news.xinhuanet.com/english/world/2013-02/16/132172546_21n.jpg
Thousands of residents attend a protest against the White Paper on Population at Singapore's Hong Lim Park in Singapore, Feb. 16, 2013. The Singapore government is looking to grow its population to between 6.5 million and 6.9 million by 2030, from the current 5.31 million, according to the White Paper on Population. (Xinhua/Then Chih Wey)

seletar

17-02-13, 16:21

http://www.aljazeera.com/video/asia-pacific/2013/02/2013216151756603968.html

Singaporeans protest over population plan

Thousands in tightly controlled city-state stage rare mass rally against proposal to increase population by 30 percent.

Al Jazeera
Last Modified: 16 Feb 2013 19:00

At least 4,000 people have staged one of Singapore's largest-ever protests, a further sign of discontent over immigration policies and growing income disparities under the long-ruling People's Action Party (PAP).

The chief organiser of the rally, Gilbert Goh, said the protest on Saturday was a display of citizens' unhappiness over a population plan, which was endorsed in parliament on February 8.

"They want to tell the government [to] please reconsider this policy. The turnout is a testimony that this policy is flawed and unpopular on the ground,'' he said.

Parliament in the highly regimented city-state had last week approved a white paper that said the island's population of 5.3 million could grow by as much as 30 percent to 6.9 million by 2030. The influx is mostly foreign workers who will be brought in to offset a chronically low birth rate.

Critics say the island is already too crowded, with a population density exceeding that of rival Asian business centre Hong Kong.

"I think a lot of Singaporeans are concerned that the emphasis on growth is not putting enough emphasis on well-being and many of the social security safety nets in an ageing population," Bridget Welsh, a professor at Singapore Management University, told Al Jazeera.

Uniformed police were all but absent at the rally at Speakers' Corner in a park on the edge of Singapore's glitzy financial district, an area exempt from strict controls on assembly.

"You cannot bring in foreigners to compete with your people when you do little to look after them," said Leong Sze Hian, a financial planner, blaming lax immigration for stagnating real wages.

Tan Kin Lian, former CEO of Singapore's largest insurance firm, told the rally that Singaporeans needed "adequate wages, dignity in employment for all sectors of the workforce. Wages must be enough to raise a family".

Income inequality

Singapore, with a land area of 714 sq km, is one of the of the world's wealthiest countries with a per capita GDP of $50,000.

It has been ruled since independence in 1965 by the PAP, the party credited with transforming the island from a British colonial outpost into a global business centre with clean streets, efficient civil service and the world's highest concentration of millionaires.

Income inequality is among the highest in the developed world, however, and many Singaporeans struggle on an average monthly wage of about $3,300. The cost of housing has doubled over the past decade.

The PAP holds 80 of 87 elected seats in parliament despite recent electoral setbacks, including a dip in its share of the popular vote to about 60 percent in the 2011 general election.

Authorities remain wary of social upheaval. A wildcat strike last year by bus drivers brought to Singapore from China, the first such work stoppage since 1986, led to the deportation of more than 20 of the strikers.

The government says without new immigrants, the working-age population will start shrinking in 2020 while the total number of Singaporeans will begin to decline in 2025.

The paper has prompted worries that further immigration could alter the character of the island.

Singaporeans account for 62 percent of 5.3 million residents, down from 75 percent in 2000, and the government plans to give citizenship to between 15,000 and 25,000 foreigners each year.

Rysk

17-02-13, 16:22

Why don't u create another thread call Bad News....just a suggestion if u can hear.
YOUNG KOK cum INEXPERIENCE SELETAR airbase die die wants to prove to u that "Property price is coming down fast" mah.. :D

seletar

17-02-13, 16:26

http://www.bangkokpost.com/news/asia/336255/singaporeans-rally-against-immigration

Singaporeans rally against immigration

Bangkok Post
Published: 16 Feb 2013 (http://www.bangkokpost.com/search/news-and-article?xDate=16-02-2013&xAdvanceSearch=true) at 19.10

SINGAPORE - Thousands of Singaporeans demonstrated on Saturday against a government plan to increase the island’s population through immigration.

Allowing more immigrants to enter the city-state will erode the national identity and threaten livelihoods, they said.

Protesters gathered at Speakers' Corner at Hong Lim Park at the edge of the city's financial district on a rainy afternoon, many dressed in black and carrying signs opposing the plan.

Lawmakers from Prime Minister Lee Hsien Loong’s ruling party last week endorsed a white paper that outlined proposals including allowing more foreigners through 2030 to expand the workforce.

Singapore has onme of the world's lowest birthrates and successive government efforts to encourage marriage and childbearing, more recently through generous "baby bonuses", have met with little success.

http://www.bangkokpost.com/media/content/20130216/473196.jpg A protester makes his view clear at a rally held to call for a slowdown in immigration in Singapore. AFP

Most young Singaporeans complain that the cost of living is high, job and career pressure is intense, and having children is just out of the question financially for them.

Saturday's rally increases pressure on the government to slow an influx of immigrants that has been blamed for infrastructure strains, record-high housing and transport costs and competition for jobs.

Singapore’s population has jumped by more than 1.1 million since mid-2004 to 5.3 million, stoking social tensions and public discontent that is weakening support for Lee’s People’s Action Party.

"The size of the crowd shows people are angry," said Tan Jee Say, a candidate in Singapore’s 2011 presidential election, who joined the protest.

"It will send a signal to the government and I hope it will react in a sensible way and see that people are concerned. The government should not push the white paper down Singaporeans' throats."

Organisers estimated that more than 3,000 people joined the demonstration at the 0.94-hectare park that served as a venue for political rallies in the 1950s and 1960s.

They sang patriotic songs. Some signs demanded a referendum on the white paper, while others said "we want to be heard, not herded", and "waiting for 2016", when the next general election is due.

Members of the opposition say the government’s policy to spur economic growth through immigration isn’t sustainable.

There may be as many as 6 million people in Singapore by 2020, and the government will boost infrastructure to accommodate a population of 6.9 million by 2030, according to the white paper that was published last month.

The government will take in between 15,000 and 25,000 new citizens and grant about 30,000 permanent-resident permits annually, according to the paper titled "A Sustainable Population for a Dynamic Singapore".

Protesters expressed unhappiness with the policy that could result in citizens, including new ones, making up only one of every two people on the island smaller in size than New York City by the end of the next decade should the population reach 6.9 million.

Singapore is the third-most expensive Asian city to live in and the sixth globally, according to an Economist Intelligence Unit ranking of 131 cities around the world published this month

"Instead of increasing the population of this country so quickly, maybe we should focus on those that have been left behind," said Sudhir Vadaketh, author of "Floating on a Malayan Breeze", a socio-economic narrative on Singapore and Malaysia.

"A lot of Singaporeans are feeling a great sense of loss of identity. With continued high immigration, I worry about that sense of identity will be diluted even more."

Demonstrations in Singapore are rare as the government imposes strict controls on assemblies and speeches, limiting outdoor protests to locations such as Speakers’ Corner.

Authorities say such laws help maintain social stability in a country that was wracked by communal violence between ethnic Malays and Chinese in the 1960s.

In a city with 3.3 million citizens and 2 million foreigners, complaints about overseas workers depriving locals of jobs and driving up home prices helped opposition parties win record support in the 2011 general election.

Lee is under pressure to placate voters without disrupting the entry of talent and labor that helped forge Southeast Asia’s only advanced economy.

Since the 2011 polls, Lee's party has lost two by- elections. The government "paid a political price" with the infrastructure strains as a result of a bigger population, the prime minister said last month.

seletar

17-02-13, 16:34

http://www.bbc.co.uk/news/world-asia-21485729

BBC News
16 February 2013 Last updated at 15:32 GMT

Rare mass rally over Singapore immigration plans

http://news.bbcimg.co.uk/media/images/65925000/jpg/_65925779_65925778.jpg
Critics of the government's white paper say they want to see a curb on the numbers of immigrants

Singaporeans have staged a rare demonstration, in protest at government plans to allow more immigration.

Organisers said more than 4,000 people attended the rally, making it one of Singapore's largest ever protests.

They are angry at a recent government policy paper that predicted the population would grow by 30% to 6.9 million by 2030, with immigrants making up nearly half that figure.

Many locals blame immigration for rises in property prices and living costs.

The peaceful three-hour rally took place in heavy rain at a park venue known as Speakers' Corner, where protests are allowed without a police permit. Only a handful of uniformed officers were seen close by,

The crowds, protected from the downpours by a sea of umbrellas, came out to voice their displeasure at the ruling People's Action Party's (PAP) immigration policies, rally organisers said.

"The large crowd here shows the PAP government that they are not afraid any more, they don't want to hide behind a moniker on Facebook to show their displeasure," chief organiser Gilbert Goh, a former opposition candidate for parliament, told AFP news agency.

"They are showing their deep displeasure with the white paper."

Singapore is known for its strict social controls and intolerance of dissent.

Saturday's protest came as news emerged that Singapore's first prime minister, 89-year-old Lee Kuan Yew, has been taken to hospital with a brain-related blockage.

Mr Lee, who is the father of current Prime Minister Lee Hsien Loong, will remain in hospital while he recovers from a suspected transient ischaemic attack, which occurs when blood flow to the brain stops for a period of time, a statement from his son's office said.

Falling birth rate

The Singaporean government said last month that it expected its population to increase by 30% to between 6.5 million and 6.9 million by 2030, with foreigners making up 45% of that number.

It said immigration was needed to help offset a slowing birth rate and ageing population, and it needed to find a balance between the number of Singaporeans and foreigners in order to sustain its rate of economic growth.

"If we do too little to address the demographic challenge, we risk becoming a steadily greying society, losing vitality and verve, with our young people leaving for opportunities elsewhere," it said in the white paper (http://202.157.171.46/whitepaper/downloads/population-white-paper.pdf).

"But if we take in too many immigrants and foreign workers, we will weaken our national identity and sense of belonging, and feel crowded out of our own home."

Singapore's total fertility rate of 1.2, which represents the number of children that would be born to a woman if she were to live to the end of her child-bearing years, has been below the population replacement rate for more than three decades.

That has led to concerns that the number of Singaporeans may shrink in the coming years.

But many local people say the surge in foreigners in recent years has already put a strain on the small, wealthy island state's resources, and has pushed down salaries while raising property prices.

seletar

17-02-13, 16:49

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1254631/1/.html

S'poreans hold protest against White Paper on Population

Channel News Asia
By S Ramesh | Posted: 16 February 2013 1846 hrs

http://www.todayonline.com/sites/default/files/styles/photo_gallery_image/public/photos/43_images/protest_1.jpg Photo: Channel NewsAsia

SINGAPORE: A protest was held against the government's White Paper on Population at Speakers' Corner on Saturday, organised by Transitioning.org.

Organisers said about 5,000 were present.

The intermittent drizzle did not deter the organisers, who led attendees in singing the national anthem and reciting the pledge.

"I think it's the largest protest in decades. It is also the first one where anger is directed squarely at the government," said Reuben Wong, an assistant professor of political science at the National University of Singapore.

"People are now more willing to air their grievances. They have been doing it on the Internet for the past few years, but it is new for them to physically come down in such numbers," he told AFP.

The 12 speakers lined up for the event included young Singaporeans, bloggers, and opposition politicians. Most of them called for more consultation with the public.

Lawyer Nizam Ismail called on the Singapore government to supersede the White Paper with a Green Paper.

He said such a procedure is in practice in developed countries.

Mr Nizam argued that the Green Paper will contain the views of Singaporeans about the population challenges, and he stressed that this was missing in the formulation of the White Paper.

Former presidential candidate Tan Kin Lian argued that four rounds of the baby bonus had not solved the problem of declining total fertility rate.

He said at the end of the day, it all boils down to affordability for Singaporeans to first get married and then have children.

Mr Tan said it is important for a policy change on the part of the government to encourage marriage and procreation.

However, he did not offer any new solutions or ideas to improve the total fertility rate.

Samantha Teo, a young Singaporean, also shared her thoughts on stage: "Right now a scarier concept is what Singapore can potentially become in another 20 years. Imagine a place where your cultural identity is slowly eroded away surrounded by unfamiliar faces, a stranger in your own homeland. How different is that from living in another country?"

"The large crowd here shows the PAP government that they are not afraid any more, they don't want to hide behind a moniker on Facebook to show their displeasure," said chief organiser Gilbert Goh.

"They are showing their deep displeasure with the White Paper," he told AFP.

The protest was held a week after Parliament endorsed an amended motion on the White Paper after a five-day debate.

The amendments ensure that the 6.9 million population figure in 2030 is not a target and the projection is for infrastructure planning.

- CNA/AFP/xq

seletar

17-02-13, 17:13

http://sg.news.yahoo.com/photos/population-white-paper-protest-at-speakers-corner-slideshow/#crsl=%252Fphotos%252Fpopulation-white-paper-protest-at-speakers-corner-slideshow%252Fgoh-applauds-during-demonstration-against-government-white-paper-photo-115455908.html

Population White Paper protest at Speakers' Corner
An estimated 4,000 show up to protest against the recent population White Paper.

http://www.globalpost.com/sites/default/files/imagecache/gp3_slideshow_large/photos/2013-February/singapore_protest_.jpg

http://l3.yimg.com/bt/api/res/1.2/b8sDYSIU00sJsU.WmzN39g--/YXBwaWQ9eW5ld3M7Zmk9aW5zZXQ7aD00MjE7cT04NTt3PTYzMA--/http://media.zenfs.com/en_us/News/Reuters/2013-02-16T084703Z_279157338_GM1E92G1AI301_RTRMADP_3_SINGAPORE-POLITICS.JPG

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http://l3.yimg.com/bt/api/res/1.2/HzykMHkmvBLWRdbNjZGAHA--/YXBwaWQ9eW5ld3M7Zmk9aW5zZXQ7aD0zODc7cT04NTt3PTYzMA--/http://media.zenfs.com/en_us/News/Reuters/2013-02-16T092500Z_424891905_GM1E92G1CC301_RTRMADP_3_SINGAPORE-POLITICS.JPG

http://l3.yimg.com/bt/api/res/1.2/C8EBlrE_.arZ.eMY4BFpcA--/YXBwaWQ9eW5ld3M7Zmk9aW5zZXQ7aD00MDg7cT04NTt3PTYzMA--/http://media.zenfs.com/en_us/News/Reuters/2013-02-16T115637Z_1493424932_GM1E92G1JDB01_RTRMADP_3_SINGAPORE-POLITICS.JPG

proud owner

17-02-13, 18:37

...you are funny....
.....is this a closed forum where non-registered member could not read?

yes thank you .... i am a funny guy ...
i get that a lot

still i am curious ...why you have been READING this forum so long ...long enough to have read about Mr B who disappeared for a while already ...

and only to finally decide to sign up as a member to start posting your views...

just retired ah ?

seletar

17-02-13, 19:05

http://www.theonlinecitizen.com/2013/02/protest-white-paper-population-hong-lim-park/

Protest against White Paper on Population at Hong Lim Park

http://farm9.staticflickr.com/8100/8480049221_eea762c9e4_c.jpg

http://farm9.staticflickr.com/8511/8481139198_99012fb38e_c.jpg

http://farm9.staticflickr.com/8109/8481147192_6e7482d0c3_c.jpg

http://farm9.staticflickr.com/8086/8481147888_24af794a6c_c.jpg

seletar

17-02-13, 19:16

http://www.theonlinecitizen.com/2013/02/protest-white-paper-population-hong-lim-park/

Protest against White Paper on Population at Hong Lim Park

http://farm9.staticflickr.com/8390/8480052185_1c5c0d2512_c.jpg

http://farm9.staticflickr.com/8233/8480055003_93155fe649_c.jpg

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http://farm9.staticflickr.com/8532/8481142872_8e87ce2e0d_c.jpg

seletar

17-02-13, 19:27

http://www.theonlinecitizen.com/2013/02/protest-white-paper-population-hong-lim-park/

Protest against White Paper on Population at Hong Lim Park

http://farm9.staticflickr.com/8092/8481149166_ed3503648f_c.jpg

http://farm9.staticflickr.com/8100/8481149732_83eb87591b_c.jpg

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Rysk

17-02-13, 20:37

25th Nov 2011

no $800 psf no buy....can get it in 2-3 yrs time....

NB!! MR B (aka DAVID LIM from sghouse) had promised me on 25th Nov 2011 that by end this year till next year.. River Valley condo/apt will crash from $1500-$2000psf to $800psf... So where is MR B now??!! I am wait to buy The Cosmopolitan..

Helo, SELETAR airbase (aka SMARIAN from sghouse).. help me call him come back & don't act blur.. I'm sure you know where he's hiding now.. since you are his long time parrot..

http://www.sg-house.com/classifieds/buy-and-sell-private-apartment-condominium/1243648-price-decreasing-for-singapore-property-215.html

minority

17-02-13, 20:47

25th Nov 2011

NB!! MR B (aka DAVID LIM from sghouse) had promised me on 25th Nov 2011 that by end this year till next year.. River Valley condo/apt will crash from $1500-$2000psf to $800psf... So where is MR B now??!! I am wait to buy The Cosmopolitan..

Helo, SELETAR airbase (aka SMARIAN from sghouse).. help me call him come back & don't act blur.. I'm sure you know where he's hiding now.. since you are his long time parrot..

http://www.sg-house.com/classifieds/buy-and-sell-private-apartment-condominium/1243648-price-decreasing-for-singapore-property-215.html
Technically speaking not yet 2 yrs :)

dare2

17-02-13, 21:06

yes thank you .... i am a funny guy ...
i get that a lot

still i am curious ...why you have been READING this forum so long ...long enough to have read about Mr B who disappeared for a while already ...

and only to finally decide to sign up as a member to start posting your views...

just retired ah ?

...hahaha you are a good detective....somehow the server just refused my registration for a while.....maybe because of firewalls.... a friend finally helped to register....but i missed all the fun, the resurrected Mr B seemed to have lost all his fire.......

seletar

17-02-13, 21:44

http://www.aljazeera.com/indepth/features/2013/02/20132169114441474.html

Singapore seethes over population plan

Proposal to boost city state's population prompts rare protest, signalling growing dissent over influx of foreigners.

Heather Tan (http://www.aljazeera.com/profile/heather-tan.html) Last Modified: 17 Feb 2013 12:55
Al Jazeera

http://www.aljazeera.com/mritems/Images/2013/2/16/2013216142437818580_20.jpg
Thousands of Singaporeans demonstrated Saturday against plans to boost the population [Heather Tan/Al Jazeera]

Singapore - Thirty-year-old Hayatt Shah made the most difficult decision of his life last month.

The Singapore native gathered his belongings and left behind his family and friends to begin a new life in Japan with his wife and six-month-old daughter.

High housing prices drove him to move from Singapore, explained Shah, who added he has no regrets leaving a country he no longer recognises. "I refuse to pay such a high price to live in a box that I have a lease on for 99 years. It's crazy that property prices here in Saitama [in Japan] are more affordable than properties in Singapore."

Like many of his fellow citizens, the musician and English instructor found it increasingly difficult to sustain a comfortable lifestyle in Singapore, where he was born and bred. "It is the simple fact that I don't feel like I am home anymore in Singapore," he said, which spurred him to move.

Singapore's success story is relatively well-known. Having transformed itself from a tiny island nation with no natural resources to one of the richest countries (http://blogs.wsj.com/searealtime/2012/08/15/singapore-home-to-the-worlds-richest-people/) in the world, Singapore prides itself on its booming economy, sustained by encouraging foreign investment and migrant labourers.

http://www.aljazeera.com/mritems/imagecache/218/330/mritems/Images/2013/2/16/2013216142248581734_20.jpg
Disenchanted Hayatt Shah recently moved his family to Japan

But despite being the third-most densely populated country in the world, Singapore's government recently announced plans to increase its total population from 5.3 million to 6.9 million by 2030. The move caused a public outcry, with thousands taking to the streets on Saturday in protest.

An aging population coupled with dwindling birth rates, escalating housing prices, overcrowding, and caving infrastructure are just some of the factors responsible for the rising dissent among Singaporeans.

Population plans

In January, Singapore's government - which has been led by the People's Action Party since 1959 - introduced two proposals. The first was its "White Paper on Population", which outlined a strategy to ensure sustainable population levels in the face of low birth rates and an aging society. Shortly thereafter, a plan (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1251352/1/.html)to increase Singapore's land area by nearly 8 per cent was announced to accommodate the new population.

In addition to the number of foreigners, an estimated 30,000 new permanent residents - a status given to foreigners who live in Singapore for long periods of time - will also be added each year.

"The White Paper is about mitigating the problems of our aging population and low birth rates, so as to secure Singapore’s future," said Singapore's Prime Minister Lee Hsien Loong in a post on his Facebook page (http://www.facebook.com/leehsienloong). "Our priority is to maintain a strong Singaporean core by encouraging Singaporeans to get married and have children. We will reduce inflow of foreign workers, moderate flow of new citizens and maintain [permanent resident] population at about present size."

Lee added a disclaimer that the government was not aiming for 6.9 million population, explaining the figure "is just a basis for us to plan our infrastructure".

What shocked many was the report's prediction that the country's population will start to decline by 2025, with more than 900,000 Singaporeans - more than a quarter of the number of citizens - retiring from the workforce. The report noted the country's fertility rate has fallen for the past 30 years, and currently stands below the replacement level of two babies per mother.

In 2010, the World Bank estimated (http://data.worldbank.org/indicator/SP.DYN.TFRT.IN)Singapore's fertility rate to be just 1.2 births per woman - among the lowest rates in the world.

Rising public anger

The potential influx of more than 1.6 million additional people has caused rare demonstrations in this island nation. Although the government stressed it would maintain a strong Singaporean core in spite of an incoming surge of foreigners, the majority of Singaporeans remain sceptical about its promise to deliver.

"It seems like anyone can just come into Singapore," said Shah. "So will having 6.9 million people make Singapore a happier place? Is the economy really that important?"

Cassandra Siew, a housewife, said she doesn't trust that the government will properly handle the population increase.

"The government has been singing the same song for years," she said. "They keep adding more and more numbers year after year and assure us that it will be for the best, but when will it end? I'm sorry to say that I simply don't buy into their promise of looking out for us anymore."

Another Singaporean, marketing executive Ron Chew, said: "Our country is rapidly evolving, but Singaporeans are not reaping any of its benefits. Why should a foreigner be entitled to the same, if not more, privileges than a Singaporean?"

Eugene Tan, an assistant law professor at Singapore Management University, described a "spatial and mental sense of being overwhelmed felt by large swathes of the public".

"Singapore is barely coping with the rapid influx of immigrants over the past decade, so there is the prevalent view that if we can't cope with 5.3 million, how are we going to manage with 6.9 million within two decades?" said Tan. "There is a sense that the immigration policy will not be of benefit to the average Singaporean."

But the public could be "reacting to a figure which they don’t really comprehend", said Chua Beng Huat, a sociology professor at the National University of Singapore. "Whether 6.9 million will be the steady state population is completely speculative, and one should not be fixated by it."
Many say a potential loss of Singapore's national identity is an even more pressing problem than overpopulation.

Dissent against the population plans has been widespread, and a rare public protest on Saturday (https://www.facebook.com/events/162959550518581/) claimed (http://www.facebook.com/events/162959550518581/)to have drawn close to 5,000 people - an impressive feat in a country where many protests and public gatherings are illegal, and a police permit needs to be obtained to hold one.

"I want to express this displeasure faced by many Singaporeans on a united and peaceful platform," said organiser Gilbert Goh, an unemployment counsellor who runs a support website for the jobless in Singapore.

"My greatest fear that arises from all this is the loss of our Singaporean identity, because it's been eroded so much already and with the heavy influx, it may be destroyed," said Goh. "And to add insult to injury, we are constantly being reminded that we could be the minority population figure in 17 years' time."

Political impact

Singaporeans have become increasingly vocal about the high influx of foreigners in recent years, demanding changes (http://www.nytimes.com/2012/07/27/world/asia/in-singapore-vitriol-against-newcomers-from-mainland-china.html?pagewanted=all&_r=0) in the government's relaxed immigration policies.

The opposition Singapore Democratic Party (SDP) recently launched its own population policy report, calling instead for a plan for businesses to favour Singaporeans when hiring and to tighten the screening of foreign professionals to wean businesses off of cheap foreign labour.

SDP party chief Chee Soon Juan said instead of moving towards a population of 6.9 million, the current population should be reduced "because of all the current problems Singapore is seeing".
ement University
Some think dissatisfaction with the White Paper could hurt the People's Action Party (PAP) in the country's elections in 2016.

"We are talking about an average increase of 100,000 people every year, so if you want to talk in terms of how crucial the impact will have on the next general election, I cannot exaggerate how important it is," said the SDP's Chee.

"Time is not on the side of the PAP," said professor Tan. "I think political change is inevitable and controversial issues like the White Paper on Population might hasten the flight of support to the opposition."The ruling party appears to have lost support in recent years. This was made clear in a by-election in January that the PAP was expected to win. Instead, unhappy Singaporeans delivered the party a devastating blow by voting in favour of the opposition candidate (http://sg.news.yahoo.com/wp-s-lee-li-lian-wins-punggol-east-by-election-150627675.html).

Political blogger Andrew Loh agreed. "I feel that the PAP government will see its share of the popular vote decrease further ... I do not see these things improving enough by the next general election for people to reinstate the level of trust in the government which they had in the past."

seletar

18-02-13, 07:36

http://www.bloomberg.com/news/2013-02-16/singaporeans-protest-plan-to-increase-population-by-immigration.html

Singapore Protest Exposes Voter Worries About Immigation

By Shamim Adam - Feb 18, 2013 12:00 AM GMT+0800

Singapore’s biggest political protest since allowing these events at a downtown park in 2000 may signal growing difficulty by Prime Minister Lee Hsien Loong (http://search.bloomberg.com/search?q=Lee%20Hsien%20Loong&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1&partialfields=-wnnis:NOAVSYND&lr=-lang_ja)’s government to push policies without broader support.

Thousands of protesters gathered on Feb. 16 at Speakers’Corner at Hong Lim Park (http://www.nparks.gov.sg/cms/index.php?option=com_visitorsguide&task=parks&id=67&Itemid=73) at the edge of the city’s financial district in the rain to oppose the government’s plan to raise the population through immigration. Lawmakers from Lee’s party, which has ruled Singapore since independence in 1965, endorsed a white paper earlier this month that outlined proposals to allow more foreigners through 2030 to boost the workforce.

“It’s a big red flag and they cannot go on with business as usual, with their old way of doing things of letting it blow over and letting emotions run their course,” said Terence Lee (http://ap3.fas.nus.edu.sg/fass/poltlcl/), who teaches politics at National University of Singapore. “This is not an emotional hump. I won’t be surprised if significant changes happen at the ballot box in 2016.”

The rally increases pressure on the government to slow an influx of immigrants that has been blamed for infrastructure strains, record-high housing and transport costs and competition for jobs. Singapore’s population has jumped by more than 1.1 million since mid-2004 to 5.3 million and may reach 6.9 million by 2030, based on the proposal. That stoked social tensions and public discontent that is weakening support for Lee’s People’s Action Party.

‘Work Harder’

“They will have to work harder at seeking buy-in rather than putting policies across as imperative,” said Eugene Tan (http://search.bloomberg.com/search?q=Eugene%20Tan&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1&partialfields=-wnnis:NOAVSYND&lr=-lang_ja), assistant law professor at Singapore Management University and a nominated member of Parliament, who said the protest is the biggest in recent memory. “Gone are the old days where the government believes what is the right thing to do and they don’t care what the public thinks and do what is right. Doing what is right is no longer enough.”

Outdoor protests are banned in Singapore as authorities say the laws help maintain social stability in a country that was wracked by communal violence between ethnic Malays and Chinese in the 1960s. Since easing the restriction more than a decade ago, large-scale protests at the park have centered on issues such as losses from mini-bonds to the city’s worst subway breakdown, rather than politics.

Organizer Gilbert Goh, who promoted the event mainly through Facebook, estimated 4,000 people joined the demonstration at the 0.94-hectare (2.3-acre) park that served as a venue for political rallies in the 1950s and 1960s. They sang patriotic songs and held signs saying “we want to be heard, not herded,” and “waiting for 2016,” when the next general election is due.

Unprecedented Protest

The turnout, which he earlier estimated at as many as 5,000 two days ago, made it the biggest protest on a political issue since independence, Goh, who was an opposition party member, said in an interview yesterday.

The Workers’ Party, the only opposition group with elected members in Parliament, said on its website (http://wp.sg/2013/02/wp-votes-for-a-sustainable-singapore/) the plan to spur economic growth through immigration isn’t sustainable.

“A 6.9 million population won’t be good for Singaporeans,” said David Tan, a 48-year-old who owns a garment textile business and attended the protest. “We have 5.3 million people and we can hardly cope. Even if the government can take care of infrastructure, it won’t help much in terms of quality of living.”

There may be as many as 6 million people in Singapore by 2020, and the government will boost infrastructure to accommodate a further increase in the following decade, according to the white paper published last month.

Angry People

“The size of the crowd shows people are angry,” said Tan Jee Say, a candidate in Singapore’s 2011 presidential election, who gave a speech at the protest. “It will send a signal to the government and I hope it will react in a sensible way and see that people are concerned.”

Protesters expressed unhappiness with the policy that could see citizens, including new ones, making up only one of every two people on the island smaller in size than New York City by the end of the next decade should the population reach 6.9 million. Singapore is the third-most expensive Asian city to live in and the sixth globally, according to an Economist Intelligence Unit ranking (http://www.eiu.com/Handlers/WhitepaperHandler.ashx?fi=FINAL_WCOL_February_2013.pdf&mode=wp&campaignid=Wcol2013) of 131 cities published this month.

“Instead of increasing the population of this country so quickly, maybe we should focus on those that have been left behind,” said Sudhir Vadaketh, author of “Floating on a Malayan Breeze.” “A lot of Singaporeans are feeling a great sense of loss of identity. With continued high immigration, I worry about that sense of identity being diluted even more.”

Under Pressure

In a city with 3.3 million citizens and 2 million foreigners, complaints about overseas workers depriving locals of jobs (http://www.bloomberg.com/quote/SIQUTOTA:IND) and driving up home prices helped opposition parties win record support in the 2011 general election. Lee is under pressure to placate voters without disrupting the entry of talent and labor that helped forge Southeast Asia’s only advanced economy (http://www.bloomberg.com/quote/SGDYTY:IND).

Since the 2011 polls, Lee’s party has lost two by-elections. Lee Kuan Yew, the prime minister’s father who was the city’s first premier, stepped down from the Cabinet after the 2011 elections. He was hospitalized on Feb. 15 for a condition linked to irregular heartbeat, and was discharged yesterday. The ruling party still holds 80 of the 87 seats in Parliament.

Ranked the easiest place to do business for seven straight years by the World Bank, Singapore is competing with lower-cost neighbors such as Malaysia and Indonesia for foreign investment.

“Singapore is moving toward becoming a normal democracy,”Tan from Singapore Management University said. “Foreign investors who are astute will realize that these are inevitable developments.”

To contact the reporter on this story: Shamim Adam in Singapore at [email protected] ([email protected])

Rysk

18-02-13, 09:15

Technically speaking not yet 2 yrs :)
Yes, Technically is not yet 2-yrs..

As usual.. this TWIST & TURN cum DIVERT ATTENTION EXPERT MR B will go MIA very fast..

Better remind him in advance.. cos this FAILURE is good in act blur.. twist & turn.. & divert attention.. or worst case go MIA

Wild Falcon

18-02-13, 09:33

This is a fictitious letter written by a blogger who is not a grassroots. Most people know that. It's the content that resonates with the people. Grassroots don't write that well - most are just ball carriers and have poor analytical skills - there is no way any of the grassroots are capable of writing such an insightful piece.

Tan ah kow died long ago.

seletar

18-02-13, 11:10

http://www.scmp.com/news/asia/article/1152609/drum-beat-discontent-singapore-draws-near

Drum beat of discontent in Singapore draws near

3,000 protesters put ruling party on notice that iron fist will not always hold sway in city-state

South China Morning Post
Monday, 18 February, 2013, 12:00am
Agence France-Presse

http://www.scmp.com/sites/default/files/styles/486x302/public/2013/02/17/5a291877c06dc712fba62bc79a12dacd.jpg (http://www.scmp.com/sites/default/files/styles/980w/public/2013/02/17/5a291877c06dc712fba62bc79a12dacd.jpg)
Prime Minister Lee Hsien Loong

Singapore's biggest protest in decades shows that the ruling party for over half a century is facing a more vocal electorate and must change or watch its popularity slide further, analysts say.

An estimated 3,000 Singaporeans chanted "we want change" and endured heavy downpours on Saturday to reject government immigration proposals, in a rare demonstration in the tightly controlled city-state of 5.3 million people.

Although low by global standards, the turnout was the largest in years in Singapore, where the People's Action Party (PAP) has traditionally responded to any dissent with a firm hand. It provides the government of Prime Minister Lee Hsien Loong much to consider.

"I think the anti-PAP sentiment will build and spread unless there's a very fundamental change in the way the PAP deals with the people, which I don't see happening," political analyst Seah Chiang Nee said.

"I think there's going to be a further decline in the popularity of the PAP between now and 2016," added Seah, who runs the political website www.littlespeck.com (http://www.littlespeck.com/) referring to the next general elections.

For most at the rally, held at a designated free-speech corner after a Facebook campaign, it was their first time waving placards and chanting slogans against the PAP, which has ruled Singapore for almost 54 years.

Eugene Tan, an assistant law professor at the Singapore Management University, said the turnout showed "we have a more contested political landscape and the PAP will have to deal with a more vocal electorate".

The PAP, long used to winning districts uncontested, has seen its support slide since a general election in May 2011 when it recorded is lowest ever share of the vote at 60 per cent and the opposition won an unprecedented six parliamentary seats.

Since then, the PAP has lost two by-elections, although it still controls 80 of the 87 seats in parliament.

Saturday's protesters were rallying against government projections that the population could rise by a third to almost seven million in less than 20 years, with much of the increase resulting from immigration.

For years, the affluent but worker-starved city-state, built by mainly Chinese immigrants, had rolled out the welcome mat for foreigners, whose numbers rose drastically during the economic boom from 2004-2007.

"Foreigners are going to create a lot of problems, especially the rich ones who buy up all our property. Where are Singaporeans going to live?" tax consultant Kevin Foo, 42, said at the rally.

proud owner

18-02-13, 12:53

seletar

18-02-13, 13:59

http://www.theonlinecitizen.com/2013/02/protest-white-paper-population-denial/

http://farm9.staticflickr.com/8112/8481138996_0cf3b9ea79_c.jpg

Protest against White Paper on Population – We are in denial

Video of the speech: http://www.youtube.com/watch?feature=player_embedded&v=lv4gfpVV7_8#!

Audio of the speech: http://www.youtube.com/watch?v=Qoj1u6WNFKc&feature=player_embedded (http://www.youtube.com/watch?v=Qoj1u6WNFKc&feature=player_embedded)#!

Transcript of Leong Sze Hian’s speech, above are the whole video and audio recording of Leong Sze Hian’s speech.

Since Cardius talked about public transport, let me add to it.

I read in the news yesterday, the fare review committee has been asked to delay their report until May.

Why?

So that they can think more about helping the disabled, the lower income and the polytechnic students?

Almost year after year, the disabled has been asking for concession fare. If you can decide to spend S$1.1 billion to help the two transport operators and now they say its more than S$1.1 billion.

Why can’t you spend a single cent over the years to help the disabled?

Find me another country in the world that increased transport fares nine times in the last twelve years, nine years out of twelve years.

If you want to count the change to distance fare as an increase or decrease which is arguable then that is ten times not nine times.

Singapore is in a state of denial, Singapore is in the state of denial.

Because we ignore the stark reality of the statistic. We ignore how bad things are. We keep talking as if everything is fine, everything is rosy. What has not work in the past is not somehow by magic work in the future.

Let me give you some examples.

In the population white paper, in the debate it was said something along the line that we don’t grow GDP, the lowest 20th percentile of workers by income will suffer the negative real wage increase. They went on to show you figures to show you that the lowest 20th percent actually had real wage increase.

Listen to this. In the last ten years. 20th percentile’s wages real increase of 0.1% per annum. After ten years, 1% increase. Imagine you earn one thousand dollars ten years ago, you are low income worker, every year got one dollar real income increase, after ten years you have ten dollars. And we can talk and debate the population white paper and say it is statistic to show you that even the lower income had an increase in real income.

We are in denial!

Last year, your median gross wage real increase was minus negative. The previous year 2011 it was negative. 2010, increased a miserable 0.5%. 2009, minus, 2008, minus. Five years, median real income growth, for five years, four years negative and we keep talking about the population white paper as if all these pro-growth, all these open door labour policies will continue to give the stark statistics that I described to you for Singaporeans, will your life get better like this?

Many of you might not realize, that last year or the last five years of the four years. The real wage income was negative. Because when you read the headlines, when you see the narrative in the labour reports, they all say you have real income growth because why? Because in the past, they only show you the wage data excluding employer CPF contribution. In recent years, now they have two sets of numbers. Now they have a number, “including CPF contribution”. So you don’t know is because of this new definition.

You know we are in denial. We ignore all the bare statistics, we only focus on the ones that look good.

We used to talk about the median income of all workers. All workers means full time and part time. Now you see the narratives, the headlines. They always talk about the wages of full time workers only. Let me explain to you, how by magic you can make everybody earn more money.

You want to learn?

<crowd replied yes>

A few years ago, they changed the definition of a part time worker in Singapore. It used to be you work 30 hours or less, you are part time. Then they changed it. You work 35 hours or less, you are part time. So overnight by the stroke of pen, everybody earn more money.

You know why?

All the part timers, all out of the sudden have all these people from earning over 30 to 35 hours become part time, so all these part time earn more money right? Then the full timers all those who worked from 35 hours to 31 become part timers. So the remaining full timers also earned more money.

We are in the state of denial! We have to look at the real statistics.

The latest labour vanacy report says, there are 56.400 jobs that nobody wants.

<Crowd jeers>

Year after year, Singaporeans are so fussy, you got so many jobs, nobody wants. Let’s examine the statistics more closely. Which category of workers have the largest number of vacancies.

<Someone in crowd shouts toliet cleaner>

Toliet cleaner, ah no lar. It is service and sales workers. More than ten thousands vacancies service and sales workers. Are these jobs that Singaporeans don’t want?

<Crowd replies “No”>

It is very strange because you look at the unemployment rate figures, which category of jobs have the highest unemployment rate? The same category, service and sales workers. How can the highest unemployment rate also have the most jobs that nobody wants?

I tell you why, why i think it is like this. The reason why you have this strange phenomena. It is because the Singaporeans who used to work as service and sales workers when they lose their jobs. They cannot find a similar job that will pay them enough for the same number of hours to enable them to make ends meet. And that is why they are unable to find a job when they lose their job.

In this category, we have waiters at the 25th percentile gross wage, the waiters’ gross wage at the 25th percentile is only 900 over dollars. You are Singaporeans, how to survive on 900 over dollars a month? This is gross wage, haven’t deduct your employee CPF contribution of 20%.

So far, I talked about wages. Ya, some people have wage increase because they working longer hours. Which workers work the longest hours in the world?

<Crowd shouts “Singapore!”>

3 out of 10 older workers work more than 48 hours a week. You know you look at the lower income jobs, you look at the statistics you know. It pains my heart, you know why?

They get a bit more money, why? Because their typical work day is 12 hours a day for 6 days a week, everyday, every week for the rest of their life. And how much they get for working 12 hours a day, 6 days a week? Just over a thousand dollars. You know an eminent economist, i don’t need to mention his name, everybody knows who is he. The eminent economist said, “We need wage shock therapy, we should give an immediate increase of 50 dollars to those Singaporeans who are earning less than one thousand dollars.

What was the response? Everybody the government, the unions, the employers all said, “No no no no”. You cannot increase this miserable 50 dollar, only productivity go up then we can increase the wages. What rubbish is this? I said earlier that we ignore the stark reality, we assume that oh, what have not worked in the past will work. Productivity, all the enhancement schemes, all the money, the scheme never work. Because productivity is not going up. So if you have to wait productivity to go up to get a wage increase for low income, so you die lar.

In the debate of the population white paper. It was said that the paper it actually proposes to slow down the intake of new citizens and foreign workers. Let’s look at the real statistics.

The last reply in parliament, intake of new citizens in 2011, 15,777 new citizens. 15,777. What does the population white paper tells you. Projected, target, best case scenario, worst case scenario, whatever you want to call it lar. Project as many as 25,000 new citizens a year going forward. 15 thousand plus to 25 thousand, is this a slow down in intake ah?

In 2011, the intake of PRs was 27,500. In the population white paper, it says it will take in as many as 30,000 PRs going forward. 27,500 increased to 30,000 every year going forward. Is also a slow down in the intake ah?

Last year, growth in foreign employment 70,000. White paper, from now to 2020, project foreign workers increase from 1.49 million to as much as 1.9 million. You add all these together new citizens, new PRs, new workers, slow down in the intake?

We are in denial!

My time is up, so i have to end.

I tell you that the very basis of the white paper is wrong. Because it says the population is aging, people are not producing babies that is why we need immigration. You know what’s the problem? In the development countries they have this problem, why? They have pensions, cost government money. Do you have pensions?

<Crowd shouts “No!”>

Is your CPF your own money?

<Crowd shouts “No!”, with some stopping to think what they just shouted>

In the developed countries, they have universal healthcare. Do you have universal healthcare?

<Crowd shouts “No!”>

The development counties have welfare, do you have welfare?

<Crowd shouts “No!”>

So what is the problem with the population aging when the government is not spending any money on the aging population?

Thank you.

phantom_opera

18-02-13, 16:19

this thread suddenly becomes a replicate site for Temasek Emeritus lool

but I like Leong Sze Hian .. he is like me, look at stats, charts and arrive at his own conclusion ... you cannot trust the media lah, they will manipulate the data to make it look good hoh :doh:

Ngiam Tong Dow already warning ... next time riots not racial / religious ... it is the rich-poor divide that will seal the fate of PAP

And Simple Bedok Food court is supposed to be non-profitable ... and the owner is Far East lol

sgbuyer

18-02-13, 16:24

Ngiam Tong Dow already warning ... next time riots not racial / religious ... it is the rich-poor divide that will seal the fate of PAP

And Simple Bedok Food court is supposed to be non-profitable ... and the owner is Far East lol

Singapore is not like Cairo or Mumbai where the poor live in slums earning $1 a day while billionaires and government officials live in palaces of 100-200 rooms and travel by helicopter or police escorts. Bottomline is the rich and poor divide in Singapore is not huge enough to cause riots.

However, there is some inflation and overworking, people are tolerating it only because their property values are rising, but if the property bubble bursts and all bubbles burst, the next election won't be pretty. :D

rockinsg

18-02-13, 21:10

Is your CPF your own money?

<Crowd shouts “No!”, with some stopping to think what they just shouted>

This one is too funny. :D:D:D.
Is CPF our own money or not? :rolleyes:

teddybear

18-02-13, 21:27

Yes & No, both answers are correct. :p
Yes, you contribute to them, you can take them out wah especially to buy golden coffin (since when you die still got lots of money inside).... :hell-hath-no-fury:
No, because you have no control over them, you can't take them out totally without all sort of rules of regulations....

Is your CPF your own money?

<Crowd shouts “No!”, with some stopping to think what they just shouted>

This one is too funny. :D:D:D.
Is CPF our own money or not? :rolleyes:

myfirstpc

18-02-13, 21:38

The golden coffin also cannot use CPF to buy. Some kind soul have to use cash to settle for it first lah! last rites also have to owe others !

Yes & No, both answers are correct. :p
Yes, you contribute to them, you can take them out wah especially to buy golden coffin (since when you die still got lots of money inside).... :hell-hath-no-fury:
No, because you have no control over them, you can't take them out totally without all sort of rules of regulations....

seletar

19-02-13, 09:56

http://www.todayonline.com/business/spore-may-scrap-us-sibor-sources

TODAYonline - 19 Feb 2013

Interest Rates

S’pore may scrap US$ Sibor: Sources

Move comes as authorities worldwide probe allegations of rigged benchmark rates

SINGAPORE — The Monetary Authority of Singapore (MAS) and banks here are considering scrapping the United States dollar-linked Singapore Interbank Offered Rate (Sibor), according to sources with knowledge of the regulator’s reviews into the setting of interest rates, as authorities worldwide probe allegations of rigged benchmark borrowing costs.

A banking source said yesterday in a text message exchange with Reuters that as a result of those reviews the abolition of the US dollar Sibor would be “likely”.

The MAS provided no new comment on the matter when contacted by Reuters. In December, the regulator said the reviews were ongoing and that it was premature to speculate on their outcomes.

Members of the Singapore Foreign Exchange Market Committee had examined the proposal to put an end to the US dollar Sibor in a Jan 22 meeting during a discussion of the MAS review of benchmark rates, Bloomberg reported a source as saying.

US dollar Sibor is a measure of the cost of borrowing US dollars in the Singapore interbank market and is used to price loans made by Singapore banks in the currency.

Banks can use alternatives such as the US dollar London Interbank Offered Rate (Libor).

The more significant market here is the Singapore dollar Sibor, which is used as the reference price for many commercial and home loans in the city-state.

The MAS had ordered members of the Association of Banks in Singapore in July to review how they set their benchmark interbank lending rates, focusing on Sibor and the Swap Offer Rate. The order came after authorities in the US and the United Kingdom uncovered widespread manipulation of Libor.

The MAS probe was extended in late September when the regulator said banks must also look at how foreign exchange rates for non-deliverable forwards (NDF) are set.

Reuters reported last month that bank reviews found that NDF rates had been manipulated as well.

Singapore’s probe is similar to those launched by other regulators across the globe following last year’s scandal over Libor, a benchmark used to price more than US$500 trillion (S$620 trillion) worth of contracts worldwide from derivatives to mortgages to credit cards. AGENCIES

minority

19-02-13, 10:01

yes it was well written

the content was interestingly true

could the writer be someone within the ruling party ?

Dont you think the timing of the paper is inline with the protest coming the day after?

to me the timing is so well timed. and I don't see how to trust a paper sign off as Tan Ah Kao.

minority

19-02-13, 10:03

Is your CPF your own money?

<Crowd shouts “No!”, with some stopping to think what they just shouted>

This one is too funny. :D:D:D.
Is CPF our own money or not? :rolleyes:

CFP can use to buy ur investment property or own home u live in. isnt that yours?

so like that say CPF is not your money. so Money u put in the bank is not your money too?

Funny people think this way. :) :) :)

Rosy

19-02-13, 10:19

CFP can use to buy ur investment property or own home u live in. isnt that yours?

so like that say CPF is not your money. so Money u put in the bank is not your money too?

Funny people think this way. :) :) :)
However i find it illogical to charge accrued interest by using CPF to buy property.

Furthermore, i think it is compulsory to buy into annuity when one reaches retirement age. We should be given a choice.

thomastansb

19-02-13, 11:47

I think they are referring to the RA. I have to disagree with you on this.

RA is crap. They force you to buy CPF LIFE. I think they should allow people to withdraw as much as they want once they hit 65 years old. Go travel or whatever because this money is theirs. Shouldn't keep other people money until they die.

CFP can use to buy ur investment property or own home u live in. isnt that yours?

so like that say CPF is not your money. so Money u put in the bank is not your money too?

Funny people think this way. :) :) :)

seletar

19-02-13, 12:22

http://thediplomat.com/2013/02/18/singapores-population-debate-grows-heated/?all=true

Singapore’s Population Debate Grows Heated (http://thediplomat.com/2013/02/18/singapores-population-debate-grows-heated/)

A government White Paper calls for Singapore’s population to hit 6.9 million by 2030. Citizens protest.

By Kirsten Han
February 18, 2013

Edwina Lin is 24-years-old and happily married, with a young son turning two this year. In Singapore, a prosperous city-state with a dismal birth rate (http://thediplomat.com/asean-beat/2011/01/27/singapore-needs-more-babies/), this is becoming increasingly rare.

But it’s not all smooth sailing. Lin, a financial planner, and her family are currently living with her parents- and brother-in-law; five adults and one child squeezed into a four-room flat in one of Singapore’s many public housing estates (http://infopedia.nl.sg/articles/SIP_1585_2009-10-26.html).

She and her husband, a travel sales agent, have applied to buy a five-room flat in a newer estate that will only be ready in 2016. Until then, there isn’t much to do but work, earn as much money as possible and save up. They‘re expecting to have to take out a 30-year mortgage to pay for their home.

It’s a common tale among many young families in Singapore. Property prices have skyrocketed in recent years, and citizens have yet to feel the effects of the “cooling measures (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1247359/1/.html)” adopted by the government. It’s a bitter pill to swallow as wages stagnate (http://sg.news.yahoo.com/mom-report-finds-lower-income-s-poreans--pay-stagnated-over-last-decade.html) and the income gap widens (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1102686/1/.html); all while the country continues to record positive economic growth (http://www.tradingeconomics.com/singapore/gdp-growth).

Singapore has often been cited as a success story, the envy of governments around the world. But simmering underneath the gloss and the shine lies a much more complex story of a nation slowly outgrowing a patriarchal government and restrictive system.

Not long after losing a by-election (http://www.google.com/hostednews/ap/article/ALeqM5jl6XJBnbwT2Ga22OwSDskwaZ-FYg?docId=2d09dfbcaa494e03b12779dacc9189de), the ruling People’s Action Party (PAP) launched a White Paper entitled ‘A Sustainable Population for a Dynamic Singapore (http://population.sg/whitepaper/resource-files/notice-of-correction/)’. The paper outlined the government’s plans to sustain economic growth and deal with a rapidly aging population, but for the most part only one thing captured the public imagination: the projected population of 6.9 million (http://news.yahoo.com/singapore-wants-boost-population-6-9-million-2030-052921442--business.html) by 2030.

It’s a very unattractive prospect, especially when strains have already begun to show with 5.3 million people crammed onto an island of only 714.3 square kilometres. Flooding (http://www.thejakartaglobe.com/international/singapores-orchard-road-floods-again/486776) and train breakdowns (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1171573/1/.html) are only some of the problems that have begun to annoy Singaporeans used to taking efficiency for granted.

Despite the public outcry, criticism from expert economists and five days of intense debate in Parliament, the PAP was able to use its parliamentary majority to push the motion through (http://www.straitstimes.com/microsites/parliament/story/parliament-endorses-population-white-paper-vote-77-13-20130208).

In the past, Singaporeans would have probably just complained in coffee shops before going about their everyday business, but not anymore. For many, the White Paper was the last straw. A protest organized at Hong Lim Park – the only space in the country where citizens are allowed to protest without a permit – drew a crowd of over 3,000 people (http://sg.finance.yahoo.com/news/rare-singapore-protest-against-population-154632492.html), all of whom were fed up with the government’s policy and lack of serious engagement.

“It’s a united show of displeasure by the citizens against the White Paper even though it has been passed in Parliament,” says organiser Gilbert Goh. “Singaporeans basically are not happy with the 6.9 million population target by 2030 and are dropping all preconceived fears to step out of their comfort zone.”

Lin, too, had wanted to attend the protest, but had to stay home to take care of her son. Like the protesters, she has many misgivings about the White Paper and the quality of life for future generations: “The most worrying is that my children and grandchildren will have harder lives – and no signs of getting better quality of life – despite hard work put in, unlike our parents’ and grandparents’ generation when opportunities were abundant.”

Placards seen at the protest showcase the people’s frustrations. “We want to be heard, not herded!” one proclaims.

“We are not your ‘sheeple’,” says another.

It’s a sign that the government’s efforts to launch a ‘national conversation’ are not quite going to plan. Despite the social media pages, the love-heart-filled website (https://www.oursgconversation.sg/) and the dialogue sessions soliciting citizen viewpoints, Singaporeans still don’t feel like they’re part of the decision-making process.

http://www.imgur.com/YDaxgck.jpeg

Rysk

20-02-13, 08:19

Due to the cooling measures implemented on 14/1/2011.. the gov did not aware of the "side effect".. In fact such CM will push up the price indirectly..... By the time they noticed that, they lan lan have to implement further CM
http://www.housesinsingapore.com/new-property-cooling-measures-for-2011-to-curb-speculations

For example of the "side effect":
Let's say one project with 500 units..

Year 1:
Initially, 50 units available for sale:cool: .. with an average 1 new units added into new listing per month.. so is 62-units for 1st year
Every month sold 2 units on average.. 1-yr sold 24-units..
Left 38-units:scared-3: available for sale (62 - 24) at the end of Year 1

Year 2:
Brought forward 38 units available for sale from last year + 12 new listing = 50 units for 2nd year
After sold 24-units for Year 2,
Left 26-units:scared-3: :scared-3: available for sale (50 - 24) at the end of Year 2

Year 3:
Brought forward 26 units available for sale from last year + 12 new listing = 38 units for 3nd year
After sold 24-units for Year 3,
Left only 14-units:scared-3: :scared-3: :scared-3: available for sale (38 - 24) at the end of Year 3

I assure the same units sold.. will not come back to the resale market for the next 3-yrs.. due to the hefty SSD for the first 3-yrs at least (16%, 12%, 8%)

More flat owners reluctant to sell: data
http://www.propertyguru.com.sg/property-management-news/2013/2/35218/more-flat-owners-reluctant-to-sell-data

sgbuyer

20-02-13, 08:48

More flat owners reluctant to sell: data
http://www.propertyguru.com.sg/property-management-news/2013/2/35218/more-flat-owners-reluctant-to-sell-data

Garment and developers selling 200k units next 3 years. Don't need flat owners to sell lah! :doh:

Laguna

20-02-13, 09:20

Garment and developers selling 200k units next 3 years. Don't need flat owners to sell lah! :doh:

In fact, most of the 200,000 units have already been sold.
This 200,000 refers to completion by 2016.

Rysk

20-02-13, 09:20

Garment and developers selling 200k units next 3 years. Don't need flat owners to sell lah! :doh:

And how many "New SC" coming for the next 3-years?? Not even talking about current demand.. who's still waiting & waiting & waiting for BTO.. :D

moneytalk

20-02-13, 10:31

CFP can use to buy ur investment property or own home u live in. isnt that yours?

so like that say CPF is not your money. so Money u put in the bank is not your money too?

Funny people think this way. :) :) :)

I used my cpf to pay for the house I live in and an investment property which is still generating rental returns for me.

seletar

20-02-13, 12:02

http://www.asiaone.com/print/A1Business/News/Story/A1Story20130219-403111.html

http://www.asiaone.com/a1media/site/common/a1logo.gif (http://www.asiaone.com.sg/)http://www.asiaone.com/a1media/site/common/blank.gifBusiness @ AsiaOne (http://business.asiaone.com/print/Business/Business.html)

More people declared bankrupt

After downward trend for 7 years, figure rose by 14.5% last year; experts blame inflation for the rise. -ST

Tue, Feb 19, 2013
The Straits Times

SINGAPORE - After seven years during which it fell steadily, the number of people made bankrupt swung upwards again last year.

While the strong economy and a debt repayment scheme helped push individual bankruptcy orders down from a peak of 4,553 in 2004 to a low of 1,527 in 2011, the orders rose by 14.5 per cent to 1,748 last year.

No reasons were given by the Insolvency and Public Trustee's Office (IPTO) for the increase, but financial advisers, lawyers and counsellors who deal with bankrupts had some ideas about it.

More people might be finding it hard to keep up with their expenses even though they have jobs, as inflation has soared in recent years. Working-class families might turn to credit cards to get by and find themselves in trouble when they cannot pay what they owe.

A typical example is a renovation contractor counselled by Mr Leong Sze Hian, past president of the Society of Financial Service Professionals. The man in his 30s was made bankrupt for charging $6,000 to credit cards "to make ends meet" as he had an irregular income. He went under when his debt snowballed to more than $10,000.

Also, given the solid economy and sizzling property market of late, more Singaporeans may be feeling flush and spending beyond their means, said Credit Counselling Singapore's president Kuo How Nam.

More people may also be getting into gambling debt, especially with the opening of the two casinos in 2010, counsellors noted. There are signs that increasing numbers may be in financial distress.

One is the burgeoning amount on rollover credit card balances - the amount unpaid which usually incurs interest of 24 per cent per annum - which shot up by almost 50 per cent from $3.4 billion in 2008 to $5 billion last year.

Another is the growing credit card bad debt being written off. This nearly doubled from $115 million in 2008 to $227 million last year, data from the Monetary Authority of Singapore (MAS) shows. To prevent people from spending beyond their means, MAS proposed changes to rules on credit cards and unsecured credit last December.

According to IPTO, the top three reasons for bankruptcy are over-spending, business failure and unemployment.

About seven in 10 bankrupts have claims of less than $200,000 against them. Most are in the 31 to 50 age range and the good news is that the proportion of bankrupts just starting out in life has shrunk.

The share of bankrupts between 21 and 30 years old has fallen steadily in the last four years, from 14 per cent of all bankrupts in 2009 to 9 per cent last year.

Lawyer Adrian Peh, who handles insolvency cases, said one reason could be that younger people tend to have smaller debts, which qualifies them for the Debt Repayment Scheme. In 2009, the Government started the scheme, for employed people with regular incomes and debts of less than $100,000. A plan is made to help them to repay their debts within five years.

An IPTO spokesman told The Sunday Times about 700 people have been put on the scheme since 2009. Without it, they would have been declared bankrupt.

There were 24,895 undischarged bankrupts at the end of last year.

Cupcakes

20-02-13, 13:45

many foreigners take loan from credit card and OD
http://www.asiaone.com/print/A1Business/News/Story/A1Story20130219-403111.html

http://www.asiaone.com/a1media/site/common/a1logo.gif (http://www.asiaone.com.sg/)http://www.asiaone.com/a1media/site/common/blank.gifBusiness @ AsiaOne (http://business.asiaone.com/print/Business/Business.html)

More people declared bankrupt

After downward trend for 7 years, figure rose by 14.5% last year; experts blame inflation for the rise. -ST

Tue, Feb 19, 2013
The Straits Times

SINGAPORE - After seven years during which it fell steadily, the number of people made bankrupt swung upwards again last year.

While the strong economy and a debt repayment scheme helped push individual bankruptcy orders down from a peak of 4,553 in 2004 to a low of 1,527 in 2011, the orders rose by 14.5 per cent to 1,748 last year.

No reasons were given by the Insolvency and Public Trustee's Office (IPTO) for the increase, but financial advisers, lawyers and counsellors who deal with bankrupts had some ideas about it.

More people might be finding it hard to keep up with their expenses even though they have jobs, as inflation has soared in recent years. Working-class families might turn to credit cards to get by and find themselves in trouble when they cannot pay what they owe.

A typical example is a renovation contractor counselled by Mr Leong Sze Hian, past president of the Society of Financial Service Professionals. The man in his 30s was made bankrupt for charging $6,000 to credit cards "to make ends meet" as he had an irregular income. He went under when his debt snowballed to more than $10,000.

Also, given the solid economy and sizzling property market of late, more Singaporeans may be feeling flush and spending beyond their means, said Credit Counselling Singapore's president Kuo How Nam.

More people may also be getting into gambling debt, especially with the opening of the two casinos in 2010, counsellors noted. There are signs that increasing numbers may be in financial distress.

One is the burgeoning amount on rollover credit card balances - the amount unpaid which usually incurs interest of 24 per cent per annum - which shot up by almost 50 per cent from $3.4 billion in 2008 to $5 billion last year.

Another is the growing credit card bad debt being written off. This nearly doubled from $115 million in 2008 to $227 million last year, data from the Monetary Authority of Singapore (MAS) shows. To prevent people from spending beyond their means, MAS proposed changes to rules on credit cards and unsecured credit last December.

According to IPTO, the top three reasons for bankruptcy are over-spending, business failure and unemployment.

About seven in 10 bankrupts have claims of less than $200,000 against them. Most are in the 31 to 50 age range and the good news is that the proportion of bankrupts just starting out in life has shrunk.

The share of bankrupts between 21 and 30 years old has fallen steadily in the last four years, from 14 per cent of all bankrupts in 2009 to 9 per cent last year.

Lawyer Adrian Peh, who handles insolvency cases, said one reason could be that younger people tend to have smaller debts, which qualifies them for the Debt Repayment Scheme. In 2009, the Government started the scheme, for employed people with regular incomes and debts of less than $100,000. A plan is made to help them to repay their debts within five years.

An IPTO spokesman told The Sunday Times about 700 people have been put on the scheme since 2009. Without it, they would have been declared bankrupt.

There were 24,895 undischarged bankrupts at the end of last year.

phantom_opera

20-02-13, 14:15

To all the bears out there, this is your last chance to enter the market ... don't miss the boat again!!

Asian shares hit 18-month high on growth hopes

Rysk

20-02-13, 16:27

To all the bears out there, this is your last chance to enter the market ... don't miss the boat again!!

Asian shares hit 18-month high on growth hopes

Well!! For that I have already warned MR B on 5th Oct 2012..
My predictions is so accurate.. till he also give up & thereafter go MIA..

http://forums.condosingapore.com/showthread.php?t=12285&page=1528
5th Oct 2012

All these are tell tale signs that price will be looking UP UP UP further in the coming months :scared-1: :scared-1: :scared-1:

I have already warned MR B once during Aug this year.. just be prepared for another round in Feb/Mar next year..

blackjack21trader

20-02-13, 16:33

To all the bears out there, this is your last chance to enter the market ... don't miss the boat again!!

Asian shares hit 18-month high on growth hopes

aiya...nobody here will believe u one la. they rather believe someone with a THIRD EYE...ooooppppps.

WOAHAHAHHEH...FUNNY!

seletar

20-02-13, 17:12

http://www.cnbc.com/id/100472868

A Wealthy Nation That Can't Afford to Retire

Published: Wednesday, 20 Feb 2013 | 3:42 AM ET
By: Rajeshni Naidu-Ghelani (http://www.cnbc.com/id/46236517)
Assistant Producer, CNBC

The Southeast Asian city-state of Singapore may boast of the highest percentage of millionaires in the world, but retiring in this wealthy financial hub is becoming even more difficult for the common man.

According to a latest study by HSBC, the citizens of this country, which has one of the highest per capita incomes in the world, face the grim prospect of running out of their savings almost halfway through retirement as the high cost of living and increased life expectancy eats into their nest egg.

Singapore has gradually moved up human resources firm Mercer's global rankings of the world's most expensive cities, moving to sixth place in 2012 from eighth in 2011 and eleventh in 2010.

(Read more: Singapore's High Cost of Living May Come at a Cost (http://www.cnbc.com/id/100418370))

"There is cause for concern from the finding that the retirement savings of people in Singapore will run out after nine years, which is about the time they are entering into frail retirement and a stage of their lives when medical costs and other elderly care expenses are expected to rise," Paul Arrowsmith, head of retail banking and wealth management, HSBC Singapore, said in the report released on Wednesday.

"People are living longer, through tougher economic times, and expectations about their standard of living in retirement have risen," Arrowsmith added.

More than half of the 1,000 Singaporeans interviewed for the survey said that either they were not adequately prepared or not prepared at all for retirement as they expected to continue working beyond the age of 65 to be able to afford their desired lifestyle.

One also needs more money to fund one's retirement in Singapore. According to the study, the annual household income required to lead a "comfortable" retired life in Singapore is the third highest among Asia's major economies, behind Australia and Hong Kong, at $48,773. This figure is 68 percent higher than what was needed in 2011, the survey, which has been running for eight years, found.

The rising cost of living in Singapore has 58-year-old Singaporean Janice Tan worried about her retirement.

"I think the cost of living is really escalating a lot," Tan told CNBC. "During the Chinese New Year season, when I went to buy the goodies, it really shocked me, because the cost is really going up too fast."

Tan and her husband are currently paying for the education of their two children, including a 21-year-old daughter studying in Perth, Australia. While Tan, an administration professional, hopes to retire soon, she says she knows it might be another 10 years before that happens.

"As human beings we want more - a more comfortable life. That's where the worries come in on whether you will able to survive," Tan said.

According to the study, of those not saving for retirement, nearly half said they were being held back by the cost of day-to-day living.

(Read more: Protest Puts Political Risk in Singapore's Future (http://www.cnbc.com/id/100463102))

High costs have become a major cause of discontent among Singapore's residents. This prompted a rare protest over the weekend in which about 3,000 people participated. They were voicing concerns over swelling costs driven by an influx of foreigners.

Foreigners, who account for almost 40 percent of Singapore's 5.3 million people, have been blamed for pushing up housing prices (http://www.cnbc.com/id/100375865) and taking up jobs in one of Asia's major business centers.

Retirement Fears

The top three fears about retirement cited by Singaporeans were poor health, financial hardship and not having enough money to provide for good healthcare, according to the study.

With retirement savings drying up at a time when Singaporeans are most vulnerable to health problems, funding medical bills could become a big burden, HSBC said.

Tan backed that sentiment, saying that medical bills from a motorcycle accident that her husband was involved in last year have been a drain on their finances.

"As we get older, I realize it [funding health costs] is a more important thing to sort out," said Tan. But the high cost of living is coming in the way. "I can't imagine how much more the cost of living is going to go up to," she added.

—By CNBC.com's Rajeshni Naidu-Ghelani; Follow her on Twitter @RajeshniNaidu (https://twitter.com/RajeshniNaidu)

seletar

21-02-13, 10:05

http://www.tremeritus.com/2013/02/20/lowest-10%e2%80%99s-real-household-income-dropped-1-5/

Lowest 10%’s real household income dropped -1.5%? (http://www.tremeritus.com/2013/02/20/lowest-10%e2%80%99s-real-household-income-dropped-1-5/)

February 20th, 2013

I refer to the report “Median household income up 7.5% in 2012 (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1255323/1/.html)” (Channel NewsAsia, Feb 20).

Real household income grew 2.7%?

According to the Department of Statistics’ Key Household Income Trends 2012 (http://www.singstat.gov.sg/pubn/papers/people/pp-s19.pdf), “Among resident employed households, median monthly household income from work increased from $7,040 in 2011 to $7,570 in 2012, a 7.5 per cent growth in nominal terms, or 2.7 per cent in real terms”.

Real household per member income grew 1.6%?

As to “Taking into consideration changes in household size, median monthly household income from work per household member increased by 6.7 per cent in nominal terms, or 1.9 per cent in real terms in 2012″, does it mean that more people per household, particularly in lower-income households, may have to work in order to make ends meet?

Actually, the above statistics is “including employer CPF contribution”. The figure “excluding employer CPF contribution” is only 1.6 per cent in real terms in 2012.

The Average Household Size of Resident Employed Households by Type of Dwelling, increased the most for HDB 1 and 2-room flats, from 2.58 to 2.68 in 2012.

Lowest 10%’s real income grew 0.7% per annum last decade?

The 1st to 10th decile’s real Average Monthly Household Income from Work Per Household Member
Among Resident Employed Households, grew by – 1.2 per cent per annum in 2012 to only $440, and only 1.1 per cent per annum from 2007 to 2012.

From 2002 to 2007, the real income growth for this group was only 0.3 per cent per annum.

So, does it mean that the real income growth for the last decade was only about 0.7 per cent per annum?

Lowest 10 & 20%’s real incomes dropped -1.5 & -0.2%?

Similarly, the above statistics are “including employer CPF contribution” – the Change in Real Average Monthly Household Income from Work excluding Employer CPF Contributions Among Resident Employed Households for the 1st to 10th and 11th to 20th decile was – 1.5 and – 0.2 per cent in 2012.

Likewise, the Average Monthly Household Income from Work excluding Employer CPF Contributions
Per Household Member Among Resident Employed Households was only $410 and $780 in 2012 for the 1st to 10th and 11th to 2oth decile, respectively.

HDB 1 & 2-room’s real income grew 0.55% p.a. last decade?

For HDB 1 and 2-room flats, the real growth was only 0.3 and 0.8 per cent per annum, from 2002 to 2007 and 2007 to 2012, respectively.

So, their real income growth was only about 0.55 per cent per annum for the last decade.

This group comprise 4.7 per cent or 54,144 households out of the total 1,152,000 households.

Middle class’ real income grew as little as 0.1% p.a.?

The Change in Real Average Monthly Household Income from Work excluding Employer CPF Contributions
Among Resident Employed Households by Type of Dwelling, was only 0.3 per cent in 2012 for HDB 1-room, 0.2 per cent for 5-room and Executive flats, and 0.1 per cent condominiums and other apartments.

200,000 households don’t earn much?

Resident Households by Monthly Household Income from Work excluding Employer CPF Contributions, was 3.2, 7.0 and 7.3 per cent of total households, for income below $1,000, $1,000 to $1,999 and $2,000 to $2,999, respectively.

Does this mean that there were about 201,600 households (36,864 + 80,600 + 84,096) earning below $3,000.

Gini “excluding employer CPF contribution” worse?

“The Gini coefficient increased slightly from 0.473 in 2011 to 0.478 in 2012.” – “Excluding employer CPF contribution”, the Gini is even worse at 0.488.

Leong Sze Hian

Leong Sze Hian is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, Wharton Fellow, SEACeM Fellow and an author of 4 books. He is frequently quoted in the media. He has also been invited to speak more than 100 times in 25 countries on 5 continents. He has served as Honorary Consul of Jamaica, Chairman of the Institute of Administrative Management, and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and 13 professional qualifications. He blogs at http://www.leongszehian.com

seletar

21-02-13, 10:32

http://www.businesstimes.com.sg/premium/top-stories/cooling-moves-dampen-developers-outlook-20130221

Business Times
Published February 21, 2013

Cooling moves dampen developers' outlook

Respondents expect moderately lower home prices: survey

By Mindy Tan (http://www.businesstimes.com.sg/reporter/mindy-tan-0)

[SINGAPORE] Developers' market outlook turned pessimistic, following the introduction of the latest set of cooling measures in January, with more expecting moderately lower residential prices in the near term.

According to the Redas-NUS Real Estate Sentiment Index (RESI), the Current Sentiment Index, where respondents rate real estate market conditions now compared with six months ago, fell from 5.1 for Q3 2012 to 4.6 for Q4 2012.

The index ranges from 0 to 10, with a score below 5 indicating deteriorating market conditions and a score above 5 shows improving market conditions.

The Future Sentiment Index, where respondents rate overall property market conditions over the next six months too slipped, from 4.7 in Q3 to 4.0 in Q4. As such, the Composite Sentiment Index fell from 4.9 to 4.3.

"After the latest round of cooling measures, there was a dip in the market sentiments in both the current and future terms. The suburban residential and industrial sectors are expected to see volatility in the next six months," said Associate Professor Sing Tien Foo of NUS' Department of Real Estate.

Prior to the announcement of the latest round of market cooling measures, respondents' current, future, and composite sentiment index were 5.2, 4.9, and 5.1 respectively. Following the announcement, they were asked to reassess their market sentiment.

Specifically, current and future net balance scores declined across different real estate sectors. The prime residential sector showed the sharpest decline in Q4 with a current net balance of -27 per cent and a future net balance of -49 per cent, compared with -8 per cent and +2 per cent the previous quarter.

In the suburban residential sector, current net balance was +10 per cent. Future net balance dropped significantly from +6 per cent in Q3 to -28 per cent in Q4.

Suburban retail and hotel/serviced apartments were the two best performers with current and future net balances of +14 per cent and +9 per cent respectively.

According to the survey, 48 per cent of respondents expect moderately lower prices in the primary residential market, up from 10 per cent. 25 per cent (a significant drop from 58 per cent previously) expect prices to hold, and 28 per cent (from 33 per cent) expect a moderate price increase.

Overall, respondents plan to launch lesser units, with only 10 per cent indicating they will launch substantially more units, from 23 per cent previously. 43 per cent (down from 48 per cent previously) expect moderately more launches; 28 per cent (unchanged) expect the launches to hold at the same level. Notably, 20 per cent expect lesser units of new launches, compared with 4 per cent in Q3.

Level of interest in land sales too dropped, with only 10 per cent expressing moderately greater interest in GLS, down from 32 per cent in Q3. 38 per cent indicated moderately lesser interest, a big jump from 7 per cent previously.

Interest in en-bloc sales was also lacklustre - 35 per cent (compared with 61 per cent previously) expressed the same level of interest; 45 per cent (up threefold from 15 per cent) anticipate moderately less interest in en-bloc sales.

On the development cost front, labour cost continues to be a major concern, indicated by 59 per cent of respondents, from 55 per cent the previous quarter. One third of developers surveyed (33 per cent) note their concern in land cost, whereas 25 per cent express concern on building material cost.

seletar

21-02-13, 11:10

http://news.asiaone.com/News/Latest%2BNews/Singapore/Story/A1Story20130220-403205.html

Ageing population won't slow growth, says expert

http://news.asiaone.com/A1MEDIA/news/02Feb13/images/20130220.090013_st_lutz.jpg

By Victoria Barker
My Paper
Wednesday, Feb 20, 2013

SINGAPORE - Singapore's ageing population is unlikely to dampen the country's economic growth, a leading Austrian population expert suggested yesterday.

Demographer Wolfgang Lutz said that though further study is required, research so far has not shown any evidence that is in line with the common "expectation that ageing societies have economic problems".

"Our historical experience is still limited but, at least up to this point, I have not seen convincing evidence that the ageing of the labour force has negative consequences," he said.

Professor Lutz was responding to a question on whether the challenges posed by an ageing population may not be as dire as portrayed in the Government's hotly-debated Population White Paper, released last month.

He added that, in fact, it is quite the opposite, citing Germany - which he said is one of the oldest countries by median age of population - as an example of an ageing population which is thriving economically.

"Cyprus has a population that is about 10 years younger than Germany's. So why doesn't the younger, dynamic population of Cyprus overtake (it)?"

The 56-year-old said: "The image of today's elderly in Singapore is strongly formed by the fact that they are largely uneducated."

But he noted that this will change, as the proportion of Singaporeans with tertiary education has been on the rise. This will translate to a better-educated and, therefore, more active elderly population in the future.

The founding director of the Wittgenstein Centre for Demography and Global Human Capital was addressing around 140 academics and members of the public at the RELC International Hotel, during a lecture organised by the National University of Singapore's Institute of Policy Studies.

In his lecture, Prof Lutz said that as a mature society, Singapore must look at its human capital in a broader sense, beyond just formal education.

"Motivation, imagination, innovativeness... These are valid, relevant factors for economic well-being, as well as social well-being," he said.

He said he attended last Saturday's protest against the White Paper, where he sensed that many Singaporeans view a strong sense of cultural and national identity as extremely important.

seletar

21-02-13, 11:43

http://www.businesstimes.com.sg/specials/property/mortgaging-entire-life-repay-home-loan-20130221

Business Times
Published February 21, 2013

'Mortgaging' entire life to repay a home loan

'Housing slaves', a part of China's growing middle class, help real estate prices rebound

http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/imagecache/filenamee/BT_20130221_CHHOUSE21_415376e.jpg

Cooling measures: China is expected to tighten credit policies for people buying a second home or raise the tax on gains on transactions of existing homes in the most affluent, or so- called tier-one cities. - PHOTO: AFP

[SHANGHAI] Sherry Sheng, a 29-year-old Shanghai policewoman, bought herself a 4,000 yuan (S$792) black fur jacket, splurging for the last time before she starts paying off the mortgage on her first home.

Ms Sheng is part of a generation of middle class that Chinese media has dubbed "fang nu", or housing slaves, a reference to the lifetime of work needed to pay off their debts. They're taking on mortgages even as the government maintains property curbs to damp prices that have almost tripled since China embarked in 1998 on a drive to increase private home ownership.

"It's a treat for myself because I could never afford such a luxury after I start repaying my housing loans next month," said Ms Sheng, who paid 1.1 million yuan for the one-bedroom apartment on the city's western outskirts and will be using about 70 per cent of her salary to service her mortgage.

China's growing middle class reaching for homeownership helped property prices rebound starting in the second half of last year. They rose one per cent in January from December, the biggest gain in two years, according to real estate website SouFun Holdings Ltd. Home prices in Beijing and Shanghai each rose 2.3 per cent from December.

Average per-square-meter prices in 100 cities tracked by SouFun are five times average monthly disposable incomes. A 100- square-meter (1,076-square-foot) apartment today costs about 40 years’ annual income, according to SouFun and government data, even as salaries have more than quadrupled since 1998.

seletar

21-02-13, 11:56

http://www.bloomberg.com/news/2013-02-21/singapore-companies-brace-for-labor-curbs-after-protest-economy.html

Singapore Companies Brace for Labor Curbs After Protest: Economy

By Shamim Adam - Feb 21, 2013 11:31 AM GMT+0800

http://www.bloomberg.com/image/ioT0B8aAnSsA.jpg

A man holds up a placard at Hong Lim Park to protest against the government's White Paper on Population at Speakers' Corner in Singapore on Feb. 16, 2013. Photographer: Suhaimi Abdullah/Getty Images

Singapore will probably force companies to further reduce their reliance on foreign labor in the 2013 budget, after a public backlash against the influx of workers led to the biggest demonstration in more than a decade.

Finance Minister Tharman Shanmugaratnam (http://topics.bloomberg.com/tharman-shanmugaratnam/) may cut the ratio of overseas workers companies are allowed to hire, according to Credit Suisse Group AG. To counter any labor shortfall (http://www.bloomberg.com/quote/SIQUTOTA:IND), there may also be incentives to boost productivity, economists at Citigroup Inc. and Oversea-Chinese Banking Corp. said ahead of the Feb. 25 budget presentation.

Thousands gathered in a rare political protest on Feb. 16, signaling concerns that foreigners are taking jobs from locals and driving up housing costs haven’t abated even after Prime Minister Lee Hsien Loong tightened hiring rules in recent years. Lee has warned that the labor curbs will slow economic growth, while rising costs are bedeviling businesses such as The King Louis restaurant, where all the full-time waiters are foreigners.

“I’m worried every time the budget comes around,” said Sebastian Teow, marketing manager at the medieval-themed restaurant. Teow is already struggling to fill positions at the outlet and coping with higher taxes for hiring overseas workers in recent years, he said. “We are really hoping there won’t be higher levies as they are eating into the profits.”

Growth Slows

Singapore’s economy grew 1.2 percent in 2012, the least in three years. The island is in a “new phase” of growth where it must adjust to a smaller pace of expansion, and hiring constraints are among the reasons for last year’s slowdown, the prime minister has said. The government forecasts growth of 1 percent to 3 percent this year.

“The ongoing challenge of sluggish growth coupled with a high-cost environment remains a hurdle to both businesses and workers alike,” said Selena Ling (http://topics.bloomberg.com/selena-ling/), an economist at Oversea-Chinese Banking in Singapore. The budget “needs to strike a balance between economic restructuring vis-a-vis manpower constraints and cost issues on the ground,” she said.

A report tomorrow may show the economy grew an annualized 2 percent in the fourth quarter of 2012 from the previous three months, faster than an initial estimate of 1.8 percent, according to the median of 11 estimates in a Bloomberg survey.

Elsewhere in Asia (http://topics.bloomberg.com/asia/) today, Hong Kong (http://topics.bloomberg.com/hong-kong/) may say its jobless rate was unchanged at 3.3 percent last month, while in Europe (http://topics.bloomberg.com/europe/), purchasing managers indices for the region may show an improvement in manufacturing and services in February, according to Bloomberg surveys. The U.S. will release consumer price data for January, while economists predict a separate report will show jobless claims rose in the week through Feb. 16.

Wage Supplements

Lee’s ruling party is facing weakening support in the island that it has governed for more than five decades. The rising number of foreigners has contributed to competition for jobs, congested public transportation and surging home prices. The resulting public discontent contributed to record opposition gains in the 2011 general election, and caused Lee’s party to lose a parliament seat in a January by-election.

Last week’s demonstration was against a population policy that may see the number of people on the island rise to 6.9 million by 2030 from 5.3 million now. Lawmakers from Lee’s party endorsed a white paper earlier this month that outlined proposals to allow more foreigners through 2030 to boost the workforce.

Tough Times

The white paper predicted total workforce growth will ease to 1 percent to 2 percent annually through 2020, compared with an average rate of 3.3 percent per annum in the last three decades. The projections are “tough” for businesses, said Ho Meng Kit, chief executive officer of the Singapore (http://topics.bloomberg.com/singapore/) Business Federation, which represents more than 18,000 companies.

In 2012, the government cut the proportion of foreign workers that companies can hire, and increased levies for employing them. An Association of Small and Medium Enterprises survey last year showed more than eight in 10 companies are facing manpower shortages.

Under current limits, employers in the construction industry (http://topics.bloomberg.com/construction-industry/) can hire as many as seven foreigners for every local worker, compared with a ratio of 1.5 for manufacturers and 0.8 for services companies. Monthly levies that companies have to pay for such workers may be as much as S$650 ($524) per employee in construction, S$550 in services and S$500 in manufacturing.

Worker Strike

SMRT Corp. (MRT) (http://www.bloomberg.com/quote/MRT:SP), the island’s biggest subway operator, said in January that its profitability in the next 12 months will deteriorate in part as staff costs “significantly increase.”Dozens of SMRT’s bus drivers from China (http://topics.bloomberg.com/china/) held Singapore’s first strike in 26 years in November over a wage dispute.

Unit labor costs rose 6.1 percent in the third quarter from a year earlier, Statistics Department data show. They may climb 3 percent to 4 percent in 2013, the central bank said in October.

“The likely continued pressure on wage costs will be negative for offshore and marine companies, domestic transport operators and exporters,” Sanjay Mookim and Kwee Hong Ching, research analysts at Credit Suisse, said in a research note.

Shanmugaratnam may also announce more assistance for the poor and bigger wage supplements for low-income earners when he presents the budget to Parliament next week, according to Citigroup economist Kit Wei Zheng.

Singapore’s income inequality as measured by the Gini coefficient widened last year, according to the Statistics Department. Inflation averaged 4.6 percent in 2012 and the island is the third-most expensive Asian city to live in and the sixth globally, according to an Economist Intelligence Unit ranking published this month.

Last year, the government said it will make permanent a program to provide cash, utility rebates and medical funds for elderly and low-income households.

“Helping the lower-income segment of the society is likely to remain on the top of the lists as Singapore strives to be an inclusive society,” Francis Tan and Jimmy Koh, analysts at United Overseas Bank Ltd., wrote in a research note.

To contact the reporter on this story: Shamim Adam in Singapore at [email protected] ([email protected])

seletar

21-02-13, 12:41

http://www.scmp.com/news/hong-kong/article/1131222/singapore-hong-kong-face-happiness-deficit

Singapore, Hong Kong face happiness deficit

Rivals Hong Kong and Singapore have much in common - not least their wealth. So why are so many in both cities so unremittingly miserable?

Toh Han Shih and Joanna Chiu
Saturday, 19 January, 2013, 12:00am
South China Morning Post

Hong Kong and Singapore are rivals on many fronts. The two former British colonies compete for everything from tourist dollars to stockmarket listings and the right to host the regional headquarters of international corporations.
https://www.scmp.com/sites/default/files/styles/486w/public/2013/01/19/nkhjksdfth34hg89.jpg
Politically, many Hongkongers deride Singaporeans for their weak political freedoms, while some in Singapore argue that Hongkongers' love of protesting goes too far.

But the two sides are locked in a new battle - perhaps a surprising twist in this ago-old contest - and it indicates that the two have rather more in common than they would care to admit.

Despite their wealth - Singapore and Hong Kong rank third and seventh on per capita GDP according to the World Bank - the two cities are among the least happy territories in the world, according to a Gallup poll released last month.

Singapore is way ahead in the race to be Asia's most miserable place, ranking rock bottom in the poll of 148 nations and territories, with just 46 per cent of those polled expressing positive feelings. Hong Kong came in 73rd, with 69 per cent of respondents expressing "happiness".

Panama and Paraguay topped the poll, with 85 per cent of the respondents reporting positive emotions. China, the United States, Chile, Sweden and Switzerland tied at 33rd place, despite the wide wealth disparity in these countries.

Happiness, after all, is a subjective sense of well-being; different cultures have different interpretations of it.

"The Gallup poll tries to standardise happiness between different places. Therefore, the poll uses positive emotions as a reference," Tso Kwok-chu, a psychiatrist who runs a clinic in Hong Kong, explained.

According to the World Bank, Singapore had a per capita GDP of US$60,688 as of December 30, 2012, while Hong Kong trailed at US$50,551. Of the two happiest countries in the poll, Panama's GDP per person was US$15,589 and Paraguay's was US$5,501 - about one-tenth of Hong Kong's.

"Singaporeans, while absolutely well off, are relatively unhappy. The survey is on to something real," said Yeoh Lam Keong, vice-president of the Economic Society of Singapore, a non-profit organisation of economists.

Alan Lo Tzee-cheng, 45, a teacher at the International College Hong Kong who moved to the city from Australia four years ago, said many Hong Kong people were too focused on achieving material success, which made them unhappy.

"I can understand why so many people say they're unhappy in Hong Kong. I travel throughout [the city] during the course of my work and see a great cross-section of people. A lot of problems start with the fact that the culture and society here is very focused on success that's based on, essentially, money," Lo said.

"Money and competition about making more money than others penetrate all parts of people's lives. Their education, the way they raise their children, what they eat. Even to go shopping can be an emotional trial. Lots of luxury goods are so priced out of people's range that it builds up jealousy and envy. People become quite negative. I think that's the heart of it."

As a result, the people in Hong Kong and Singapore find themselves constantly buried in an avalanche of work, leaving them emotionally insecure and fragile.

Singaporeans have one of the worst work-life balances in the world, as they work some of the longest hours globally, explained Yeoh, a senior adjunct fellow of the Institute of Policy Studies, a Singapore think tank. "They are overstressed and do not have enough time for family and recreation."

An International Labour Organisation report in 2010 found that Singaporeans put in the longest hours at work. While the report did not specify exact numbers, the Ministry of Manpower in Singapore put the average at 45.9 hours per week. Hong Kong follows closely, with 44.5 hours per week according to government statistics.

There are no comparable statistics from Panama and Paraguay. In Panama, 50-hour workweeks are allowed for two months in a year for manufacturing ventures during the peak season. In Paraguay, the standard working hours for civil servants is around six to seven hours a day.

Wealth does not necessarily guarantee a good quality of life. The average living space in Hong Kong is only 12 square metres per person - one of the smallest in the world. Singapore ranks much better at 25 square metres per person. However, despite its reputation for having world-class public housing, education and health care, these are becoming increasingly unaffordable for a significant segment of Singaporean society, according to Yeoh.

Overcrowding and wage stagnation due to immigration have generated huge negative social challenges for low and middle-income Singaporeans, Yeoh added. "Income inequality has risen to high levels. Most studies show high income inequality leads to poor social well-being, reducing social mobility."

As Chua Kheng Kok, Asia Pacific president of Mary Kay, an American cosmetics company, remarked: "The polarity of wealth in Singapore has resulted in the rich becoming happier and the common people become unhappier. I find Singaporeans more envious of each other and therefore less happy."

The increasing wealth gap is hardly unique to Singapore.

In Hong Kong, government figures show that the median salary of Hong Kong's top 10 per cent of earners is HK$88,800 a month, more than 26 times that of the poorest 10 per cent.

Overall, one in six people, struggled with poverty in the second quarter of last year - a shocking figure given Hong Kong's reputation as one of the most affluent societies in the world.

And the problem is not just the disparity in wealth distribution, but also people's mentality towards it.

Jacqueline Tong Tze-ling, 24, an engineering consultant for an international firm who was raised in Canada and lives in Hong Kong, says Hongkongers are too intense and competitive.

"The main causes of unhappiness in Hong Kong are financial, and that's just how the society is set up. Everyone needs to compete, and it starts really early. Preschoolers already need to develop a portfolio. That's ridiculous. When I was in preschool [in Vancouver], I was happy and blowing bubbles," she said.

"People make their kids grow up too fast here. They don't get time to explore and enjoy the things they want to do … basically people trade their health in order to gain wealth in Hong Kong. That's the norm."

Alvin Tan Sheng Hui, a Singaporean working in Hong Kong, put the dilemma simply: "We in Hong Kong and Singapore have a lot to be thankful [for] and we forget that. We have more than we need, which also engenders envy and dissatisfaction. We want more, yet we thank less."

In both Hong Kong and Singapore, the key determinants of happiness are money, career and family, said Alvin Tan, an executive director at a leading investment bank.

"Singaporeans are generally positive fellows, though the pursuit of the 5Cs is now in question - whether it really brings true happiness," said Kelven Tan, a Singaporean businessman. The 5 Cs is a Singaporean acronym for the symbols of material success: car, cash, credit card, condominium and club membership. Tan said he had become happier after moving to Canada from Singapore several years ago.

"I moved because I wanted my family to know there is more in life than earning money, more to learning than scoring As to get good jobs, to learn the truths themselves," Tan explained.

Lee Kwok Cheong, CEO of SIM Global Education, the largest provider of private education in Singapore, said: "We [Singaporeans] have the paradox of being happy and unhappy at the same time.

"Singaporeans are on the whole happy. We appreciate how far Singapore has developed and how we have done better than most countries. We like to boast we are No1 in this and that.

"At the same time, we focus on where we have fallen short, and compare ourselves against a very high standard. This is partly due to our government reminding the population we would lose everything if we drop the ball. This insecurity, plus the pressure of living in a crowded city, cause us to complain."

In Hong Kong, property is the one thing that makes or breaks a person's fortune - and largely decides if he is happy or not.

Hong Kong residents who profited from earlier waves of property inflation were happier than those who did not, said Lee, a Hongkonger who has lived in Singapore for many years.

Tong, the engineering consultant, agrees. "It is very tough for young people to establish themselves in Hong Kong. They really can't afford to support themselves. Housing is a really big deal. They end up living with their parents even after they get married," she said.

"So you end up with generations of people living together, so no one has privacy or time for themselves at all because they're crammed in a small space."

Singaporeans generally do not wear their emotions on their sleeves and open up to strangers, unlike people from Malaysia or the Philippines, said Raju Chellam, South Asia and Korea head of cloud practice for Dell Computers.

"But the reality is different. Singaporeans care about their country, family, neighbourhood and people who have been mistreated. Since Singapore is hyper-efficient, there is little to complain about, compared to many countries," said Chellam, who was born in India and has lived in Singapore for 20 years.

A Singaporean lawyer working in Hong Kong said he felt happier here, enjoying the freedom and vibrancy of the city.

"People are less angry and more comfortable with themselves. … Everybody has a different point of view and is not afraid to express their individuality. The transportation system works well. Things are not overpriced except housing.

"You don't feel the government is taking everything and leaving you the crumbs. When you walk around the streets, you always find new things to discover. The city is always interesting, alive and surprising," he said.

However, not everyone is seeing the benefits.

The proportion of poor people is increasing in Hong Kong, says Tso, the psychiatrist. Many young Hongkongers with university degrees born after 1980 have high qualifications, but low income. "These young people have become frustrated and helpless."

Tso has a front-row seat to Hong Kong's high-pressure culture and the toll it takes on citizens. "Hong Kong people are under great stress. There is great demand for mental health services in Hong Kong nowadays."

Chua, of Mary Kay, offers a solution: wherever one lives, the key to happiness is to count one's blessings and to look on the bright side of things.

seletar

21-02-13, 13:57

http://www.tremeritus.com/2013/02/18/does-asset-enhancement-really-benefit-ordinary-sporeans/

Does ‘asset enhancement’ really benefit ordinary S’poreans? (http://www.tremeritus.com/2013/02/18/does-asset-enhancement-really-benefit-ordinary-sporeans/)

February 18th, 2013

When Mr Goh Chok Tong became Prime Minister in 1991, he introduced the “asset enhancement” programme. It involved upgrading public housing i.e. HDB flats as well as encouraging prices for both public housing and private property to rise.

Mr Lee Kuan Yew explained some years ago, “Let me explain what happens when we make progress. HDB prices go up, private home (prices) go up, all asset prices go up. Everybody finds he owns something more valuable in the house, his shares are worth more and he can live a good life.”

However, to live a good life, one needs to convert the asset to cash first by selling the property and realising capital gain.

As it turns out, more Singaporeans are now holding on to their HDB flats, according to the latest data from HDB. The percentage of people who sell their flats within the year after the 5-year minimum occupation period (MOP) dipped to 11.8% last year (2012), reversing a trend that had been rising in the past 4 years.

In 2008, it was 4.3% while in 2011, it was 18.3%. These figures are for flats bought directly from HDB.

A property analyst said, “The fact that more people are reluctant to sell their flats is a sign that they have difficulty gaining entry into the private property ladder.”

HDB flat owner Steve Tan, 38, said he has no plans to sell his four-room flat in Hougang, even though he would stand to make a tidy sum. He said, “If I sell high, I need to buy high.”

PAP’s “asset enhancement” policy does benefit some people, but just not your ordinary Singaporeans. The following groups of people stand to gain the most from this policy:

1. Rich Singaporeans and PRs who own more than one property. They still have a house to live in after realising capital gains from selling their other houses.

2. PRs selling their high-priced Singapore property in S$ and leaving Singapore for good. Housing is generally cheaper in other countries compared to Singapore. So when they settle down in a new country or settle back in their home country, they can enjoy the capital gain.

3. And of course, Singaporeans who decide to give up on Singapore for good and emigrate to other countries as in (2).

4. The government – in fact, this year the government is expected to gain a few more billion dollars in its budget surplus, thanks partly to higher stamp duties from property sales.

5. Banks – higher bank loans for higher priced properties means more interest earnings.

6. GIC and Temasek Holdings – proceeds from high prices of land sales (for both HDB and private properties) go into our reserves which, in turn, feed GIC and Temasek Holdings. The bigger the fund, the higher the management fees for the fund managers.

phantom_opera

21-02-13, 15:17

yawn .. this topic of asset enhancement is history liao lah .. now price in non-prime Shanghai and Beijing already 500-1000psf, HK already SGD1500psf ... in an increasingly globalized society, it is not possible to articifially depress property prices in Singapore .... imagine if D15 is selling at 600psf ... then overseas Asians will find all kind of lobang to buy ... any arbitrage opportunity arise will be quicly snapped up by rich Asians from Indonesia, China, Hong Kong, Taiwan, Thai ...

it is not just properties ...look at bidding of F&N and APB

even Australians find it hard to control their prop prices :p

:beats-me-man:

seletar

21-02-13, 20:27

http://www.channelnewsasia.com/stories/afp_world_business/view/1255585/1/.html

Eurozone PMI shows business activity contracting steeply

Channel News Asia
Posted: 21 February 2013 1819 hrs

BRUSSELS: Private business activity across the eurozone hit a two-month low in February, signalling a steepening of the economic downturn, a leading growth indicator said on Thursday.

The Purchasing Managers' Index published by London-based Markit fell to 47.3 in February from 48.6 the previous month.

The February indicator contrasted sharply with an easing over the previous three months. The January figure notably showed private business activity at a 10-month high.

"A steepening rate of decline in February is a disappointment, and suggests that the eurozone is on course to contract for a fourth consecutive quarter in the first three months of the year," said Markit's chief economist Chris Williamson.

January had marked a third straight monthly rise for the index even though it remained below the 50-point line indicating economic growth or contraction.

Markit's Williamson said that despite the fall in PMI, the first-quarter decline in the economy should be less severe than the 0.6-percent drop in gross domestic product seen in the final quarter of 2012.

He forecast a contraction of 0.2 to 0.3 percent.

He also noted widening differences within the eurozone, with Germany on course to grow in the first quarter and possibly expanding while France, the euro area's second-biggest economy, headed for a deeper downturn.

- AFP/al

seletar

21-02-13, 20:30

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1255561/1/.html

Asian markets hit by Fed stimulus fears

Channel News Asia
Posted: 21 February 2013 1628 hrs

HONG KONG - Asian markets suffered a heavy sell-off on Thursday following a tumble on Wall Street as traders grow concerned that the US Federal Reserve could bring an early end to its huge stimulus programme.

Minutes from the Fed's most recent policy board meeting showed some members were in favour of cutting short the US$85 billion-a-month bond-buying introduced last year to support the economy and which has helped lift global shares.

Tokyo fell 1.39 percent, or 159.15 points, to 11,309.13 and Sydney slid 2.33 percent, or 118.6 points, to 4,980.1, its worst day so far for 2013 and biggest fall since May. Seoul was off 0.47 percent, or 9.42 points, at 2,015.22.

Shanghai tumbled 2.97 percent, or 71.23 points, to 2,325.95, while Hong Kong slipped 1.72 percent, or 400.74 points, to 22,906.67.

The Fed introduced a third round of its asset-purchase scheme, known as quantitative easing 3 (QE3), in September and said it would not take its foot off the pedal until unemployment had fallen and the economy was strong enough.

However, investor sentiment took a hit after the Fed minutes showed a "number" of board members said an ongoing evaluation of the easing "might well lead the committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labour market had occurred".

On Wall Street the Dow fell 0.77 percent and the S&P 500 lost 1.24 percent, with both markets having closed at more than five-year highs on Tuesday. The Nasdaq dropped 1.53 percent.

The dollar surged against the euro in New York trade, with the single currency ending at US$1.3283, well down from US$1.3390 the previous day.

In Tokyo on Thursday the euro bought US$1.3265. The euro also sat at 123.96 yen compared with 124.37 yen in New York. The greenback fetched 93.45 yen, against 93.61 yen.

Flagship airline Qantas lifted 2.79 percent after slashing international losses and banking Dreamliner compensation from Boeing to notch a net first-half profit of US$114 million -- up 164 percent year on year.

Sony slipped 1.77 percent to close at 1,331 yen in a muted response after it announced its long-awaited PlayStation 4 in New York without actually unveiling the console.

Oil prices were lower owing to a stronger US dollar, with New York's main contract, light sweet crude for delivery in April, shedding US$1.06 to US$94.16 a barrel and Brent North Sea crude for delivery in April dropping 98 cents to US$114.62.

Gold was at US$1,566.70 at 0800GMT, compared with US$1,595.20 late Wednesday.

- AFP/ir

seletar

22-02-13, 09:53

http://www.tremeritus.com/2013/02/21/6140-benefits-per-household-member/

$6,140 benefits per household member? (http://www.tremeritus.com/2013/02/21/6140-benefits-per-household-member/)

February 21st, 2013

I refer to the Department of Statistics’ Key Household Income Trends 2012 (http://www.singstat.gov.sg/pubn/papers/people/pp-s19.pdf).

$6,140 benefits per HDB 1 & 2-room household member?

It states that “On average, resident households received $1,340 of transfers per member from various government schemes in 2012. Those in HDB 1- & 2-room flats received the most, at an annual average of $6,140 per household member, followed by those in HDB 3-room flats at $1,530 per household member on average.

Benefits accounted for 75% of household income?

On per household member basis, government transfers as a proportion of annual household income from work were highest amongst resident householdsliving in HDB 1- & 2-room flats at 75 per cent. For households living in other dwelling types, this proportion ranged from 0.6 to 6.9 per cent.”

How much benefits exactly?

Let’s examine more closely the “annual average of $6,140 per household member” benefits and “75 per cent government transfers as a proportion of annual household income from work” that HDB 1- & 2-room households get.

Can be so many benefits are “Not Applicable”?

“Government Transfers and Taxes

Government Transfers include the following in relevant years

a) New Singapore Shares and Economic Restructuring Shares, Growth Dividends, NS Bonus, GST Credits, Senior Citizen Bonus, National Service Recognition Awards, Top-Ups to CPF Accounts and GST vouchers; -

For the current year, the GST Cash Voucher is only $250?

b) Re-Employment Support Scheme, Workfare Bonus, Workfare Income Supplement disbursements and Workfare Training Support Scheme Benefits; -

If you are not 35 years and older earning $1,700 or less, Workfare Bonus and Workfare Income Supplement may not be applicable to you. If you did not lose your job or go for training, the Re-Employment Support Scheme and Workfare Training Support Scheme Benefits may not be applicable to you.

c) Rebates on utilities, rental and service and conservancy charges; -

Under the current GST Voucher scheme. the maximum Rebates on utilities for the lowest income is only $260, and there are no more Rebates on rental and service and conservancy charges.

d) Schemes relating to education, such as Edusave Pupil Fund, Edusave Merit Bursary, Edusave Awards and Edusave Scholarships for Government or Government Aided Schools. Also include CCC/CDC Bursary/ITE Scholarship from 2002 onwards, MOE Bursary, MOE Financial Assistance Scheme from 2006 onwards, Post-Secondary Education Accounts Top-up and government’s matching grant from 2008 onwards, Tertiary Tuition Fee Subsidy for Malay Students (TTFSM) from 2010 onwards, CET Qualification Award from 2011onwards and Short-term Study Assistance Scheme (SSAS) for IHLs in relevant years; -

If you do not have children, or did not go for training, much of the above may not be applicable to you.

e) Schemes relating to healthcare, such as subsidies for medical bills incurred at A&E, day surgery, hospitalisation episodes, Interim Disability Assistance Programme(IDAPE) from 2002 onwards. From 2006, also include subsidies for medical bills incurred at specialist outpatient clinics and polyclinics, Medifund disbursements. From 2009 onwards, also include Community Health Assist Scheme; -

If you did not go for medical treatment, much of the above may not be applicable to you.

f) Baby Bonus from 2001 onwards, Centre-based Infant and Childcare subsidies from 2002 onwards, schemes relating to ComCare programmes from 2004 onwards, Caregivers Training Grant from 2007 onwards and Assistive Technology Fund in relevant years; -

If you did not bore children or was not eligible to apply for financial assistance, much of the above may not be applicable to you.

g) CPF Deferment Bonus from 2008 onwards, CPF Life Bonus and Voluntary Deferment Bonus from 2009 onwards; -

If you are below age 55, or above age 55 and did not opt for or was not eligible for the CPF Life Bonus schemes, these benefits may not be applicable to you.

h) Public rental subsidies from 2003 onwards; -

If you did not rent a HDB flat under the Public Rental scheme, or you did meet the eligibility criteria, this benefit may not be applicable to you.

i) Income tax rebates and property tax rebates. -

If you don’t earn enough to pay income tax, or don’t own property, much of the above may not be applicable to you.

Could be hardly any benefits?

So, in summary, if you are say a lower-income Singaporean below 35 years old with no children who don’t own a HDB flat, was not hospitalised, didn’t lose your job, don’t earn enough to pay income tax or went for training, you may end up with hardly any of the benefits listed above.

Gini lower due to Government transfers and taxes?

Consequently, the following:-

“After adjusting for Government transfers and taxes, the Gini coefficient in 2012 was lower at 0.459, reflecting the redistributive effect of government transfers.

“The redistributive effect of government transfers and taxes was similarly reflected in the P90/P10 ratio, lowering the ratio from 9.14 times to 7.87 times in 2012″,

may also not be of much meaning to you.

Leong Sze Hian

Leong Sze Hian is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, Wharton Fellow, SEACeM Fellow and an author of 4 books. He is frequently quoted in the media. He has also been invited to speak more than 100 times in 25 countries on 5 continents. He has served as Honorary Consul of Jamaica, Chairman of the Institute of Administrative Management, and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and 13 professional qualifications. He blogs at http://www.leongszehian.com.

seletar

22-02-13, 10:13

http://sg.news.yahoo.com/5-sneaky-property-agents-tactics-160000046.html

5 Sneaky Property Agents’ Tactics to Watch For (in Singapore)

By Ryan Ong | MoneySmart – Thu, Feb 21, 2013

So you think property agents are all cheats, do you? You think every last one is just out for your money. Well that’s not fair, because I’ll have you know you’re only 97% right! But seriously, I exagerrate. Few property agents outright lie or cheat in squeaky clean Singapore. I mean, their mind games are already so good, they don’t even require outright lies:

[/URL]

http://l2.yimg.com/bt/api/res/1.2/Oti25Mnj7nZ8i8w3c7ZPjA--/YXBwaWQ9eW5ld3M7cT04NTt3PTMxMA--/http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/4275674005_d4e4c41a2d_n.jpg

(http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/4275674005_d4e4c41a2d_n.jpg)“And we agents think it should be replaced with something simpler. Like nodding your head. Once.”

Do Property Agents Cheat?

For the most part, no.

Think about it this way: If a store sets up a display that tempts you into buying, is that cheating? No? Well that’s the level property agents (and any other good salesperson) works on. It’s like a pro-Poker game. They may play dirty, but they never cheat.

So as long as the agent’s properly licensed*, worry less about his bio or tattoos. Focus on his manipulative efforts instead, like:

The Contrast Principle
Sense of Urgency
Fishing
The Reciprocity Principle
Inflated Interior Design Costs*Property agents are licensed by the CEA (http://www.cea.gov.sg/cea/content/index.html) (Council for Estate Agencies). They are required to tell you their license numbers.

1. The Contrast Principle

http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/2470877920_b885754e7d.jpg (http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/2470877920_b885754e7d.jpg)
“And it’s vermin free. The rats left when they got a rash from staying in there. Or we can look at this OTHER unit…”

What we’re willing to pay isn’t determined by fixed measurements. Rather, it’s defined by comparisons. Here’s how a property agent would use that:

The agent starts by showing you a house that’s cheap and bad. This is usually a run down mess, or a unit with trendy interior design. Trendy in 1973, that is.

You’ll hang around for maybe 10 minutes, before deciding puke-yellow isn’t an ideal living room colour. Then the agent will whisk you off to another apartment…the one he actually wants to sell. Since your brain’s easily fooled by comparisons, this next place will feel like the Versailles Palace.

Not only will it be easier to sell to you, there’s a chance you’ll offer more.

Solution: Establish a fixed frame for comparisons. Bring some pictures of your ideal house, then compare every unit to that. Not to the previous unit you saw.

2. Sense of Urgency

http://l.yimg.com/bt/api/res/1.2/EorrdxlQl9DEgkcfVnr3oA--/YXBwaWQ9eW5ld3M7cT04NTt3PTMxMA--/http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/4313004646_271e3fc294_n.jpg

(http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/4313004646_271e3fc294_n.jpg)“And the negotiation was like a chess game. That is, I wasted his time till he gave up.”

This happens all the time in showrooms. Agents will tell you people are already sending in cheques. That all units are selling fast. That prices could go up 10% by the time you’re back from that bathroom break, so you better sign now.

Okay, the agent may not be lying. Sometimes, sales really are brisk; but the wonder of it is you’ll never know. As such, agents will use the “selling fast” speech by default. Even if the launch reception consists of three people, two of whom just want to sit under the air-conditioner, the agent will swear that units are going fast.

Solution: Panic is a leading cause of stupidity. Calm down and ask yourself: Would I want the place if it wasn’t selling out? And would you buy at the same price?

3. Fishing

http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/5328813872_5b3d4ac6c8_n.jpg (http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/5328813872_5b3d4ac6c8_n.jpg)
Fishing pole? Nah I’m a property agent. I just talk at the water till the fish choose to climb on.

This is when fake property listings are used to hook buyers.

The agent puts up a great property listing. Something like “Two storey landed property, only $1 million, comes with Jaguar in driveway”.

After you screw your eyeballs back in their sockets, you call the agent. He verifies it’s not a trick. He takes you to view the property, you love it, and he’ll “call you about your offer this Monday”.

Come Monday, you indeed get a call….to tell you the property’s already sold. He’s so sorry, etc. But hey, he’s got a whole bunch of alternatives to show you.

Obviously, the listed property was never up for sale, at least not at that price. It was just dangled as bait, so you’d get within range of the agent’s deadliest weapon (his mouth). It’s an underhanded way to meet you, dig out your details, and find out what sort of house you’re shopping for.

Congratulations, you just became a lead.

Solution: This isn’t a positive reflection on the agent. If you do go and see his other properties, remember not to be too trusting.

4. The Reciprocity Principle

[URL="http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/6598576457_8234fc4768_n.jpg"]
http://l.yimg.com/bt/api/res/1.2/gcTU5h_POO6UAe4jEnNZ9Q--/YXBwaWQ9eW5ld3M7cT04NTt3PTMxMA--/http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/6598576457_8234fc4768_n.jpg

(http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/6598576457_8234fc4768_n.jpg)“You’re a property agent and I wanted to be practical. So enjoy the ski mask and fake passport.”

Reciprocity is the unofficial system of “favour payments”, which we like to call civilization. The problem is, reciprocity doesn’t mix well with finance.

Most of the time, we significantly overpay social favours. How many times have you bought a $5 lunch for a colleague, because he got you an 80 cent cup of coffee?

Yeah. Like any good salesmen, property agents see this as leverage. Sending you all the way home might cost them $40 in petrol, but who cares when it could results in a $50,000 commission? Which is why some property agents pull out all the stops: They’ll take you to nice cafes, send you little presents, etc.

The more favours they do for you, the more guilty you’ll feel if you buy from someone else.

Solution: If your conscience is getting the better of you, refuse all favours. Ensure your decisions are financially sound, not guilt driven.

Incidentally, some property agents will offer to help you get a home loan. Before you take them up, always verify that the loan package is the cheapest (this isn’t their field of expertise.)

(And in case you’re wondering, yes, property agents can get referral fees from banks).

5. Inflated Interior Design Costs

http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/5961755846_ca6a7398b4_n.jpg (http://globalfinance.zenfs.com/en_us/Finance/SG_AFTP_MoneySmart_NEW/5961755846_ca6a7398b4_n.jpg)
“And these toilet pipe fittings were stolen from an advanced alien race.”

Resale flat buyers, watch out for this one.

Some property agents will tack inflated values on renovations. They’ll claim it was done by a famous designer, that the marble’s all Italian, and that the new kitchen counters were smelted from the original Holy Grail. They’ll use this to justify added costs, particularly to cash over valuation (COV).

Solution: Take some pictures, and show it to a few design firms. Ask them how much they’d charge for something like that. There are some complex looking renovations that can be quite cheap.

It’s even better if you can get a contractor in, to verify the quality of materials used.

seletar

23-02-13, 08:39

http://www.tremeritus.com/2013/02/22/the-truth-about-the-silver-tsunami-and-supporting-our-elderly/

The truth about the Silver Tsunami and Supporting our elderly (http://www.tremeritus.com/2013/02/22/the-truth-about-the-silver-tsunami-and-supporting-our-elderly/)

February 22nd, 2013

During his speech at Hong Lim Park on 16 Feb 2013, a very energized Leong Sze Hian lambasted the White Paper for its claim that the large foreign influx is needed to support the elderly in Singapore so that they can have a better life:
“I tell you that the very basis of the white paper is wrong. Because it says the population is aging, people are not producing babies that is why we need immigration. You know what’s the problem?

In the developed countries they have this problem, why? They have pensions, cost government money. Do you have pensions?

Is your CPF your own money?

In the developed countries, they have universal healthcare. Do you have universal healthcare?

The development counties have welfare, do you have welfare?

So what is the problem with the population aging when the government is not spending any money on the aging population?”<

- From The Online Citizen[Link (http://www.theonlinecitizen.com/2013/02/protest-white-paper-population-denial/)]

Under the PAP system, the elderly takes care of themselves with whatever money that have saved up while working and the amount they have accumulated in their CPF. When they retire, they have no income unless they are among the minority who have done so well that they have sizable investments and assets that yield a good return. But for most people, all they have are their savings and CPF to live on when they retire. Their biggest concern is the rise in the cost of living and cost of medical care.

“According to a latest study by HSBC, the citizens of this country, which has one of the highest per capita incomes in the world, face the grim prospect of running out of their savings almost halfway through retirement as the high cost of living and increased life expectancy eats into their nest egg.
Singapore has gradually moved up human resources firm Mercer’s global rankings of the world’s most expensive cities, moving to sixth place in 2012 from eighth in 2011 and eleventh in 2010.” – CNBC Report (http://www.cnbc.com/id/100472868)

The real problem with retirement is the rising cost of living. So what has driven up the cost of living? One of the factors is overcrowding caused by the high foreign influx – this high population density pushes up the cost of everything from housing to rentals to the cost of private transport. The PAP proposal to import more people in the coming years will hurt the large number of Singaporeans who are retiring as part of Silver Tsunami. The White Paper claims that more foreigners and a higher living density will lead to better quality of life is not true. Actually I don’t have to waste any more bandwidth to explain this, because we already see many of our elderly right now suffering from the high cost of living resulting from PAP policies.

When people are hurt by the consequences of the PAP policy, what is actually on the mind of the PAP leadership when people fall into hardship? Suppose due to high inflation rate of 4.5%, you are a retiree finding it hard to cope in the 6th most expensive city in the world because as a wage earner during your working life you earned nowhere near the 6th highest salaries in the world for your profession – this is true for many today who will retire as part of the Silver Tsunami because we have the 2nd largest income gap (sometimes largest) in developed world and a 3rd world wage structure..,..much of this due to the policies of the PAP…suppose you seek help when you find you can’t cope through no fault of your own.

I would like thank, PAP member Victor Lye, for his frank and honest Facebook posting of what he thinks when people come to him for help during MPS. In case you don’t know who Victor Lye is, he is a member of the PAP tasked to win back Aljunied GRC[his impressive resume (http://maintmp.pap.org.sg/uploads/ap/8304/documents/personal_information__victor_lye.pdf), a speech he gave (http://www.facebook.com/notes/peoples-action-party/excerpts-from-branch-chairman-for-bedok-reservoir-punggol-mr-victor-lyes-speech-/534876903190381)]. He is the head of PAP’s Bedok Punggol branch. I truly appreciate Victor Lye’s honesty given the White Paper’s hazy unsubstantiated promise of “better support and better quality of life” for elderly Singaporeans if only we allow the foreign influx to continue.

Here is what Victor Lye said:
http://www.tremeritus.org/wp-content/uploads/2013/02/What-Victor-Lye-said.jpg?9d7bd4

PAP member Victor Lye did not sugar coat or fudge what he really believed to make it acceptable to ordinary Singaporeans. Please read what he wrote a few times so that you understand clearly what he means. Whatever the consequences of PAP’s economic policies, at the end of the day, you are responsible for your own retirement. If your financial situation makes it hard for you to stay in high cost Singapore, then you should adapt to that situation by moving out. The PAP is not going to hand out “goodies” because it cannot “afford” it. So you’re are very much on your own…if you have a HDB flat, sign up for the lease-buy-back to get some money from it – when you leave this world, the bulk of what you worked for goes back to the govt and you leave nothing for your children. This is the reality right now when our old age support ratio(OASR) is near historic high at 9.8 (it will decline towards 2030) and the govt surplus is $5B. There is little govt support now and there will be little govt support for those retiring in 2030 under the present system regardless of OASR so the argument that we need to bring in foreigners to support our elderly is bogus.

That the PAP does not believe in the increased sharing of financial burden of caring for the old is clear over the years – if you still believe the PAP’s rhetoric of being compassionate and caring towards the old because you see our PM giving out a few ang pows to the old during Chinese New Year…good luck to you. In the past, when the cost of living was contained…. Singaporeans could pay off housing loans within 10 years and accumulate CPF funds and savings for retirement so they bought into this idea that everyone should takes care of their own retirement with money they earned while working. The conditions under which this philosophy was accepted by ordinary people was never preserved. After the financial burden of caring for the elderly was shifted to individuals and their children (by way of Maintenance of Parents Act), we saw, as a result of PAP’s economic policies, the huge rise in cost of living, stagnant wages, structural unemployment , income gap, rising cost of medical care etc that hurt the financial ability of Singaporeans to retire. The pro-business policy of allowing cheaper foreign labor resulted in a wealth transfer from wage earners to corporations. The PAP is now pushing for a continuation of the current economic model and policies.

In the coming decades, more Singaporeans will reach retirement age without the financial ability to retire comfortably due to our 3rd world wage structure and high cost of living – a consequence of PAP policies. But like Victor Lye so honestly explained, the PAP view is that those who are not rich should adjust to a lower a quality of life and if necessary, leave the country to stay in a cheaper place. This is the only way to be consistent with PAP’s ideology and its resultant policies. We are told often the PAP approach is the best for us and is the only way to sustain our nation. If you choose to accept this, the outcome is all laid out as Victor Lye has honestly described. If you choose not to accept this, you cannot squeeze an alternative from the PAP because such a solution is likely to run counter to their ideology and the PAP leadership will never believe it can work even if there is overwhelming evidence to support it. For this reason, the PAP has lost its ability to solve problems faced by Singaporeans. As the problems mount, the PAP solution is actually a non-solution, they will simply tell Singaporeans to live with it and solve their own problems.

Singaporeans can dream of fairer wages for their hard work, a proper retirement, better quality of life with less stress, affordable heath care and housing, higher equality, …but year after year, the problems that Singaporeans face just get worse despite paying our political leaders the highest salaries in the world to solve these problems for us. Not only are they not solving these problems, they are starting to sell us ideas that will clearly make all these problems worse and packaging them as solutions to our problems. If the PAP has other overriding considerations such as the perpetual need to attract foreign capital, generate economic growth and they really have no fundamentally different ideas of how to run this place other that those they have executed, it is better for them not to fudge the outcomes and create false expectations. That many Singaporeans face the risk of a poorer quality of life because the PAP does what it believe is the best way to sustain this city-state, should be honestly presented to us instead of a fairy tale rising quality of life that we will never experience. The PAP often does this to sell its policies and when Singaporeans experience the opposite trust is eroded.

When the PAP started importing foreigners, they sold the policy by telling us that foreigners are here “to create better job opportunities for Singaporeans”, Singaporean workers experienced the opposite of this. There has been intense competition for jobs and downward pressure on their wages. We are now told the proposal in the White Paper will elevate the quality of life and provide support for our elderly. We know this is not true – quality of life will decline in an overcrowded Singapore and our elderly will suffer due to the high cost of living. If the PAP proposal in the White Paper is purely to sustain economic growth because ideologically the PAP believes things can never be better with slower economic growth, as proposed by WP, and that whatever quality of life we achieve in 2030 even if it is bad, is still better that something we can achieve with slower growth then they should be honest enough to say it so we can get to the real policy tradeoff and debate it. Painting a fairy tale that every knows is not true to sugar coat the proposal simply enrages Singaporeans and make them question the integrity of the govt.

Lucky Tan

*The writer blogs at http://singaporemind.blogspot.ca/

seletar

23-02-13, 08:48

http://www.todayonline.com/commentary/spend-more-keep-healthcare-affordable
TODAYonline
Commentary

Spend more, to keep healthcare affordable

http://www.todayonline.com/sites/default/files/styles/photo_gallery_image/public/photos/43_images/table.jpg
Source: World Bank

By Jeremy Lim - 22 Ferbruary 2013

Singapore’s health system is lauded internationally for its ability to achieve outstanding health outcomes at very low national spending. Yet, 72 per cent of Singaporeans believe “we cannot afford to get sick these days due to high medical costs”, according to a 2012 Mindshare survey.

How can this be? Our low national spending on healthcare is the envy of the world and yet Singaporeans are so worried about healthcare costs.

What makes a great healthcare system? Healthcare planners the world over dream of the ideal health system: High quality, low cost and universal access for all citizens. How would Singapore rank along these dimensions?

The quality of Singapore healthcare is top-notch; 850,000 medical tourists in 2012 is testament to our high standards.

What about access? Geography advantages us and, unlike many large countries which need extraordinary measures to provide for far-flung populations, Singaporeans are hardly a stone’s throw from a doctor and barely a 15-minute drive from a hospital.

Our weakness lies in affordability, or at least the perception of affordability. Ironically, why we spend so little may account for why there is so much anxiety.

INDIVIDUAL RESPONSIBILITY: A DOUBLE-EDGED SWORD

In many developed countries, healthcare is funded collectively. Citizens are enrolled into a national health scheme and funds drawn based on individual need. These “solidarity” schemes are designed to offer medically necessary care without consideration of the ability to pay.

Singapore has eschewed this path, with then-Prime Minister Lee Kuan Yew asserting: “Subsidies on consumption are wrong and ruinous ... for however wealthy a nation, it cannot carry health, unemployment and pension beneﬁts without massive taxation and overloading the system, reducing the incentives to work and to save and care for one’s family — when all can look to the state for welfare.”

The Government declared health an “individual responsibility” in the 1980s and established Medisave and MediShield, enabling individuals to finance and hence be “responsible” for personal healthcare.

The principle of emphasising the private financing of healthcare through individual responsibility supported by family has been praised for helping Singapore achieve remarkable cost constraints, but there has been a human cost. While the Government has successfully mitigated the risk of wanton state spending, the consequence arguably is that financial risk from medical catastrophe has been passed to individual citizens and their families, with resultant anxiety.

Support from Medifund is possible, but only upon application and on a case-by-case basis with no certainty of coverage, complete or otherwise. C-class wards provide subsidies which can be as high as 80 per cent, but paying even the remaining 20 per cent may be impossible for hefty bills; 20 per cent of S$50,000 is still too heavy a burden for low-income Singaporeans.

THE GERMAN EXAMPLE

And healthcare costs can be very unpredictable.

While virtually every country imposes co-payments to guard against over-consumption, many countries, especially European nations, operate on the reverse principle to Singapore. Co-payments are preserved as with Singapore, but the individual’s share of the total bill is capped — for instance, in Germany at 10 per cent of monthly income — with the government assuming the financial risk for unexpectedly large bills. No need to apply for special dispensations or subsidies.

Princeton University economist Uwe Reinhardt, speaking of the German health system, declared about medical bankruptcy: “That’s almost impossible … I have not ever read of Germans going bankrupt over healthcare.”

In Singapore, MediShield lifetime dollar coverage is capped at S$200,000 (soon to be S$300,000) with high deductibles and sub-limits on what clinical services can be covered. All these collectively enable relatively low premiums to be imposed and render MediShield financially very healthy — but similar to the structuring of subsidies, financial risk is borne by individuals and their families, with no certainty of help from Medifund or other schemes.

The theme is consistent: In our healthcare financing model, safeguards are built first and foremost to ensure system financial viability and sustainability.

A HUGE MIDDLE GROUND

Defenders of the system will point out the many financially struggling “welfare states” and proclaim Singapore must never go there. But it should be noted that between where we are today and the “fiscal extravagance” of the welfare states, there is a huge middle ground.

Singapore’s total public spending as a proportion of gross domestic product is only 13 per cent, a far cry from the 40 per cent that Finland spends. Singapore’s government spending on healthcare is just above one-third the total, with a long way to go before even sniffing the four-fifths that is the case in the United Kingdom.

Health Minister Gan Kim Yong’s commitment following the release of the Population White Paper — to “look at how we can restructure our primary care sector, our hospitals including our intermediate long-term care sector”, that is, the entire healthcare landscape — is reassuring, especially when juxtaposed against earlier comments on looking at healthcare affordability from the patient’s perspective. Times are changing.

“To live well, live long & with peace of mind” is the mission of the Ministry of Health. How can we balance “individual responsibility” with ‘peace of mind’? Between 13 per cent and 40 per cent, between one-third and four-fifths, where do we want to be?

Dr Jeremy Lim has held senior executive positions in both public and private healthcare sectors. He is currently writing a book on the Singapore health system. This is part of a series on health policies in Singapore.

seletar

23-02-13, 08:53

http://sbr.com.sg/commercial-property/news/capitalands-singapore-sales-took-24-dive-681-units

Singapore Business Review
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 22 Feb 2013

CapitaLand's Singapore sales took a 24% dive to 681 units

It still targets to gain 8-10% market share.

According to CIMB, unit sales in 2012 fell from 844 units in FY11 to 681 units in FY12. Recent incentive schemes introduced at D’Leedon and The Interlace have helped to push sales up with 395 units sold YTD.

This comes at the expense of margins, which we estimate have been squeezed to single digit levels. While management aspires to achieve 8-10% of total market share in Singapore residential, it concedes that the latest cooling measures will have an adverse effect on sentiment and volume.

Here's more from CIMB:
Singapore residential remains a core segment for the group but management is likely to be selective in future landbanking. For 2013, projects due to be handed over are Urban Suites (100% sold), Urban Resort (42% sold) and The Interlace (71% sold).

Units due for launch in 2013 include the remaining units at The Interlace, D’Leedon and Sky Habitat, and new projects in Marine Point and Bishan St 14.

teddybear

23-02-13, 11:33

Can post some news about the commercial and industrial properties' prices and rentals? We often hear that these properties' prices and rentals gone up by a lot but you never cut and paste anything on those? Heard rentals for industrial properties up >40% within past 4 years! Same for rental of commercial/retail properties! No wonder inflation so far because business owners passed all these rental costs down to consumers! :doh:

http://sbr.com.sg/commercial-property/news/capitalands-singapore-sales-took-24-dive-681-units

Singapore Business Review
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 22 Feb 2013

CapitaLand's Singapore sales took a 24% dive to 681 units

It still targets to gain 8-10% market share.

According to CIMB, unit sales in 2012 fell from 844 units in FY11 to 681 units in FY12. Recent incentive schemes introduced at D’Leedon and The Interlace have helped to push sales up with 395 units sold YTD.

This comes at the expense of margins, which we estimate have been squeezed to single digit levels. While management aspires to achieve 8-10% of total market share in Singapore residential, it concedes that the latest cooling measures will have an adverse effect on sentiment and volume.

Here's more from CIMB:
Singapore residential remains a core segment for the group but management is likely to be selective in future landbanking. For 2013, projects due to be handed over are Urban Suites (100% sold), Urban Resort (42% sold) and The Interlace (71% sold).

Units due for launch in 2013 include the remaining units at The Interlace, D’Leedon and Sky Habitat, and new projects in Marine Point and Bishan St 14.

teddybear

23-02-13, 11:37

Does ‘asset enhancement’ really benefit ordinary S’poreans? (http://www.tremeritus.com/2013/02/18/does-asset-enhancement-really-benefit-ordinary-sporeans/) - Why not?

You see, the >50 years old Singapore citizens can sell their bigger size property and downgrade to a small studio (enough for a couple to live in), and have more than enough for retirement!

If based on your suggestion, these >50 years old citizens can never retire at 50 years old even if they own a cheap property that will never increase in price!

So as a Citizen who owns our own property (remember, >90% of citizens own their own properties), which option is better? I would definitely choose "Asset Enhancement", as do >60% people who voted PAP! :D

http://www.tremeritus.com/2013/02/18/does-asset-enhancement-really-benefit-ordinary-sporeans/

Does ‘asset enhancement’ really benefit ordinary S’poreans? (http://www.tremeritus.com/2013/02/18/does-asset-enhancement-really-benefit-ordinary-sporeans/)

February 18th, 2013

When Mr Goh Chok Tong became Prime Minister in 1991, he introduced the “asset enhancement” programme. It involved upgrading public housing i.e. HDB flats as well as encouraging prices for both public housing and private property to rise.

Mr Lee Kuan Yew explained some years ago, “Let me explain what happens when we make progress. HDB prices go up, private home (prices) go up, all asset prices go up. Everybody finds he owns something more valuable in the house, his shares are worth more and he can live a good life.”

However, to live a good life, one needs to convert the asset to cash first by selling the property and realising capital gain.

As it turns out, more Singaporeans are now holding on to their HDB flats, according to the latest data from HDB. The percentage of people who sell their flats within the year after the 5-year minimum occupation period (MOP) dipped to 11.8% last year (2012), reversing a trend that had been rising in the past 4 years.

In 2008, it was 4.3% while in 2011, it was 18.3%. These figures are for flats bought directly from HDB.

A property analyst said, “The fact that more people are reluctant to sell their flats is a sign that they have difficulty gaining entry into the private property ladder.”

HDB flat owner Steve Tan, 38, said he has no plans to sell his four-room flat in Hougang, even though he would stand to make a tidy sum. He said, “If I sell high, I need to buy high.”

PAP’s “asset enhancement” policy does benefit some people, but just not your ordinary Singaporeans. The following groups of people stand to gain the most from this policy:

1. Rich Singaporeans and PRs who own more than one property. They still have a house to live in after realising capital gains from selling their other houses.

2. PRs selling their high-priced Singapore property in S$ and leaving Singapore for good. Housing is generally cheaper in other countries compared to Singapore. So when they settle down in a new country or settle back in their home country, they can enjoy the capital gain.

3. And of course, Singaporeans who decide to give up on Singapore for good and emigrate to other countries as in (2).

4. The government – in fact, this year the government is expected to gain a few more billion dollars in its budget surplus, thanks partly to higher stamp duties from property sales.

5. Banks – higher bank loans for higher priced properties means more interest earnings.

6. GIC and Temasek Holdings – proceeds from high prices of land sales (for both HDB and private properties) go into our reserves which, in turn, feed GIC and Temasek Holdings. The bigger the fund, the higher the management fees for the fund managers.

minority

23-02-13, 11:59

hr helfen

23-02-13, 12:13

If it is true that in china developers are giving 20-25% discount on property then I wan t to buy property. Would you like to sell any property in china?

sgbuyer

23-02-13, 12:37

If it is true that in china developers are giving 20-25% discount on property then I wan t to buy property. Would you like to sell any property in china?

Property in China has no resale value, becomes slum after a few years.

kane

23-02-13, 13:19

The writer not very investmeny savvy. Those who stay hdb, because home value go up, they have the equity to then upgrade to private although they might have to take on a bit more loan. Otherwise have to save until don't know when to buy a private.

And when you have private property, your investment universe expands greatly. They need to be spoon fed with investment ideas as well??

Arcachon

23-02-13, 13:55

To give a person a fish to eat, he can only eat that fish and then die without eating the next fish.

To teach a person to fish, he can eat as many fish as he want till he die.

Everyone in Singapore can be a millionaire but most chose not to be and chose to cry father cry mother. Spend more time to think how to be a millionaire instead of cry father cry mother.

heehee

23-02-13, 14:02

Thanks to this forum, I now learn how to 'fish'. It is better they start learning than to keeping crying for 'fish' to be be served to them. God will not help those who don't help themselves! (same for gov)

To give a person a fish to eat, he can only eat that fish and then die without eating the next fish.

To teach a person to fish, he can eat as many fish as he want till he die.

Everyone in Singapore can be a millionaire but most chose not to be and chose to cry father cry mother. Spend more time to think how to be a millionaire instead of cry father cry mother.

Arcachon

23-02-13, 14:09

Matthew 7:7

"Ask and it will be given to you; seek and you will find; knock and the door will be opened to you."

http://bible.cc/matthew/7-7.htm

kane

23-02-13, 16:17

if you don't aggressively fish, the reality is others will catch the fish from the same bond that you are fishing from.

Sam88

23-02-13, 17:08

Rysk

23-02-13, 18:27

it is easier to cry mother, cry father than to fish. so many want to be spoon fed. many find comfort in complaining. those who fish are laughing to the bank. those cry father are crying all the way and will always cry and cry.
What to do!!
MR B & SELETAR airbase who let go all the fish.. Saying only fools will keep.. And thought they are very smart.. Now ended up KPKB & desparately searching for bad news & do copy & paste..
The person who kept all the fishes.. Their fishes ardy grew bigger & bigger now

seletar

24-02-13, 21:54

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1256132/1/.html

Chinese 'Dubai' turns into deserted island

Channel News Asia
Posted: 24 February 2013 1349 hrs

SANYA, China: It was billed as China's Dubai: a cluster of sail-shaped skyscrapers on a man-made island surrounded by tropical sea, the epitome of an unprecedented property boom that transformed skylines across the country.

But prices on Phoenix Island, off the palm-tree lined streets of the resort city of Sanya, have plummeted in recent months, exposing the hidden fragilities of China's growing but sometimes unbalanced economy.

A "seven star" hotel is under construction on the wave-lapped oval, which the provincial tourism authority proclaims as a "fierce competitor" for the title of "eighth wonder of the modern world".

But the island stands quiet aside from a few orange-jacketed cleaning staff, with undisturbed seaside swimming pools reflecting rows of pristine white towers, and a row of Porsches one of the few signs of habitation.

Chinese manufacturers once snapped up its luxury apartments, but with profits falling as a result of the global downturn many owners need to offload properties urgently and raise cash to repay business loans, estate agents said.

Now apartments on Phoenix Island which reached the dizzying heights of 150,000 yuan per square metre (US$2,200 per square foot) in 2010 are on offer for just 70,000 yuan, said Sun Zhe, a local estate agent.

"I just got a call from a businessman desperate to sell," Sun told AFP, brandishing his mobile phone as he whizzed over a bridge to the futuristic development on a electric golf cart.

"Whether it's toys or clothes, the export market is bad... property owners need capital quickly, and want to sell their apartments right away," he said. "They are really feeling the effect of the financial crisis."

Official figures showed an almost eight percent increase in China's total exports last year, but sales to Europe fell by almost four percent with the continent mired in a debt crisis and recession.

At the same time rising wages in China mean that producers of clothes, toys and other low-end goods are seeing their margins squeezed as other emerging economies compete to become the world's centre for cheap manufacturing.

For years Chinese business owners, faced with limited investment options and low returns from deposits in state-run banks, have used property as a store of value, pushing prices up even higher in the good times but creating the risk of a crash in the bad.

"China had a lending boom... and so if people are using property as a place to stash their cash, they had more cash to stash," said Patrick Chanovec, a professor at Beijing's Tsinghua university.

"At some point they want to get their money out, then you find out if there are really people who are willing to pay those high prices."

Phoenix Island is part of Hainan, a Belgium-sized province in the South China Sea that saw the biggest property price increases in China after a 2008 government stimulus flooded the economy with credit.

Eager buyers camped out in tents on city streets as prices shot up by more than 50 percent in one year.

But tightened policies on access to credit and multiple house purchases have since knocked values in favoured second home locations, even while prices in major cities have rallied in recent months.

Real estate is a pillar of the Chinese economy, accounting for almost 14 percent of GDP last year and supporting the massive construction sector, making policy makers anxious to avoid a major collapse of the property bubble.

At the same time ordinary Chinese who cannot afford to buy a home have been frustrated by high housing costs for years.

With anger over graft also mounting state media have carried several reports in recent weeks about corrupt officials' property holdings, including a policeman who used a fake identity card to buy at least 192 dwellings.

Hainan's tropical shores are said to be a hotspot for purchases by well-connected bureaucrats, but estate agents denied they were rushing to sell off apartments for fear of a crackdown.

Officials only account for around 20 percent of owners, they said -- while doubting any new regulations would be properly enforced. "There are always different rules for people with connections," said one agent, asking to remain anonymous.

It is an example of the multiple competing interests the authorities have to balance, leaving them treading a difficult line, with sometimes unforeseen consequences.

On the other side of Hainan, the Seaview Auspicious Gardens boasts beachside villas accessed by artificial rivers and a private library containing 100,000 books. Prices there have fallen by a third from a high of 12,000 yuan per square metre in the last year, and a third of the flats remain unsold.

Yang Qiong has a thankless task as one of its saleswomen.

"Before the government restrictions we would sell out a development like this in just five months," she lamented.

- AFP/ir

seletar

24-02-13, 22:03

http://www.cnbc.com/id/100477888

Foreign Worker Curbs to Be Focus of Singapore Budget

REUTERS
Published: Thursday, 21 Feb 2013 | 1:40 AM ET

Singapore is likely to announce more steps to slow an influx of foreign workers in a budget on Monday aimed at placating public anger about a surge in immigration blamed for overcrowding, rising prices and competition for jobs and housing.

The budget for the financial year starting in April is also expected to offer tax relief and grants to help companies cope with the changes in labor policy, as the government tries to raise wages of low-income Singaporeans without pushing the slowing economy into recession (http://www.cnbc.com/id/100347701).

(Read More: Singapore's High Cost of Living Comes at a Cost (http://www.cnbc.com/id/100418370))

Singapore, the Asian base for many Western multinationals and banks, enjoys large current account surpluses and the government holds huge reserves, giving ample room to raise spending on social services and help local companies.

Parliament recently approved a white paper (http://www.cnbc.com/id/100417967) that envisions the population of the small island nation growing by as much as 30 percent to 6.9 million by 2030. Foreigners will make up much of the rise, even if the pace of immigration is slowed.

The white paper sparked a rare public protest (http://video.cnbc.com/gallery/?play=1&video=3000148661) in the regimented state, just weeks after the long-ruling People's Action Party (PAP) lost a seat (http://www.cnbc.com/id/100410195) in parliament in a by-election.

"Addressing the electorate's concerns over social safety nets and inadequate infrastructure could receive further focus, especially in the wake of the PAP's surprise defeat," Citigroup economist Kit Wei Zheng said of the upcoming budget.

Singapore, ranked as the world's sixth-most expensive city by the Economist Intelligence Unit, is trying to restructure its economy by getting factories and restaurants to boost productivity to curb a reliance on low-skilled foreign workers.

Its efforts have raised the ire of employers (http://www.cnbc.com/id/100462475), with the American and other chambers of commerce complaining of labor shortages and the Restaurant Association of Singapore saying eateries may be forced to shut down or move abroad.

DBS economist Irvin Seah said there could be measures in the budget to make it harder for firms to bring in mid-skilled workers to boost job opportunities for the rapidly rising number of Singaporeans with tertiary education - a view shared by Nina Alag Suri, the chief executive of recruitment firm Nastrac.

"There is a definite initiative to make sure that the numbers of (employment) passes are reduced so that the local population can be given a fair chance," she said.

Big Surpluses, Heavy Spending

For the fiscal year ending in March, the government is expected to report an overall budget surplus of as much as S$5 billion, helped by higher property taxes and stamp duties in a buoyant real estate market and a sharp rise in the auction prices of permits that motorists must have to buy new cars.

The surplus does not include income from government land sales, which is booked directly into state reserves. Inclusion of this figure would boost revenues by billions of dollars.

The surplus for fiscal 2012/13, including government land sales and all interest and dividend income, could be as large as S$24.9 billion or 8 percent of gross domestic product, said Citigroup's Kit. The Singapore government has a habit of underestimating its fiscal position and had predicted a surplus of S$1.27 billion for the year ending in March.

Other highlights in the budget, to be presented on Monday at about 3:30 p.m. (0730 GMT) by Finance Minister Tharman Shanmugaratnam, are likely to include:

An increase in cash grants to lower-income Singaporeans to help them cope with inflation.

Higher spending on healthcare in an ageing society.

More incentives for couples to have children to try to raise Singapore's total fertility rate of 1.2 births per woman, one of the lowest in the world.

Higher spending on infrastructure to ease congestion from the surge in immigrants over the past decade and cater for the envisioned rise in the population from the current 5.3 million.
Plans already made public include the doubling of Singapore's subway network to 360 km and land reclamation to facilitate the construction of 700,000 homes, both by 2030.

(Read More: Singapore: A Wealthy Nation That Can't Afford to Retire (http://www.cnbc.com/id/100472868))

Jobs are plentiful in Singapore and the unemployment rate is below 2 percent but salaries tend to be low relative to the cost of living, especially for menial workers such as cleaners who make around S$1,000 a month due to competition from foreigners.

In his last budget, Tharman cut the proportion of low-wage foreign workers that firms can employ.

Companies in Singapore also pay levies for each foreign worker they employ. The levies, which are set to rise in July, do not apply to employment pass holders who are mostly professionals and executives.

seletar

24-02-13, 22:11

http://www.tremeritus.com/2013/02/24/medifund-helped-over-half-a-million-patients-it-only-tells-half-the-story/

Medifund helped over half a million patients? It only tells half the story (http://www.tremeritus.com/2013/02/24/medifund-helped-over-half-a-million-patients-it-only-tells-half-the-story/)

February 24th, 2013

I refer to the article “Medifund supported more than half a million needy patients in 2012 (http://www.straitstimes.com/breaking-news/singapore/story/medifund-supported-more-half-million-needy-patients-2012-20130223)” (Straits Times, Feb 23).

It states that “Medifund supported more than half a million needy patients who needed financial aid to pay for their medical bills last year – an 8 per cent increase over the previous year.”

Medifund applications’ success rate?

In previous years, the statistics would also say what percentage of Medifund applications was successful.

I believe the last reported figure was that about 99 per cent of applications were successful.

However, for this year, I am unable to find any mention of this statistic.

Patients’ applications’ success rate?

I believe the “more than half a million needy patients” refers to the successful approval of applications, and not the approval rate of patients who apply.

For example, a patient who has 12 medical treatments in a year may be counted as 12 approved applications. Whereas, the approval rate in terms of the number of patients who apply has never been disclosed. It was reported in 2008, that 301,126 approved applications were made by about 20,000 to 30,000 patients.

In this connection, the number of rejections increased dramatically by 2,900 per cent from 210 to 6,456 in 2006, and then declined dramatically by 79 per cent from 6,456 to 1,266 in 2007.

What about those who were told that they do not meet the basic criteria, which is not public information, and may be told that they do not even need to apply?

Medifund criteria?

I have tried to ask many medical social workers for the criteria to qualify for Medifund, but have been told that it is confidential.

As I understand it, all family members’ Medisave, as well as the bulk of their savings, must be depleted, before one can qualify for Medifund. What this may mean is that by the time one qualifies for Medifund, the entire family may in essence be left with almost nothing already.

Therefore, I would like to suggest that the Medifund criteria be made public, so that Singaporeans may not have a false sense of complacency, that if they cannot pay for medical costs, they can always rely on Medifund.

For example, some important information that Singaporeans may need to be made aware of, are that as I understand it, about one out of five patients who apply may be rejected, Medifund generally cannot be used for polyclinic out-patient treatment and medicine, patients who are referred by a general practitioner cannot select subsidized Class C and B2 hospital wards and medical treatment and thus may not qualify for Medifund, the maximum Medifund subsidy for B2 is 60 per cent, etc.

In this connection, it is interesting to note that “Ms Esther Lim, who heads the medical social workers team at the Singapore General Hospital – which gave out more than $5 million from Medifund Silver to the elderly – said the fund’s criteria for help are less stringent than those of the main Medifund.

She said: “An elderly patient who might not qualify under Medifund, but who gets help from other siblings who are also old and may have medical needs of their own, can get help from Medifund Silver”.

Medifund limitations?

In 2008, Madam Halimah Yacob, chairperson of the Government Parliamentary Committee for Health, expressed some concerns that the conditions for Medifund was too stringent, some procedures are excluded, and that for some ailments, B2 is the lowest class of ward available which only gives a maximum Medifund subsidy of 60 per cent.

Medifund cannot use for polyclinic?

Medifund also cannot be used for polyclinic out-patient general consultation treatment, such that the medical providers have been raising funds through their own efforts to help such patients who cannot pay.

Medifund have surplus?

Despite the above statistics and Medifund use restrictions, I understand that about $86 million of Medifund unultilised (surplus) has been transferred to the protected reserves. (Note: “The protected reserves comprise accumulated unutilised interest monies that were locked-up at the change-over of Government in December 2001, May 2006 and 2011. Authorisation from the President is required before the protected reserves can be used”)

Funds not allocated based on patients’ needs?

I am rather puzzled as to why the last reported total assistance given by Medifund-approved institutions (MFIs) to patients formed less than (98%) of the Medifund and Medifund Silver grants disbursed by MOH to MFIs in FY10 – utilisation of allocated funds increased compared to FY09, and any unspent funds will be carried over to assist patients in the next financial year.

As I understand it, MOH allocates a grant to each MFI at the beginning of the year for the whole year, and MFIs have to be prudent in ensuring that the grant is sufficient for the whole year. So, it may not be based on the needs of patients for the year, but rather like how well the MFI is able to keep within the allocation for the whole year. In such a system, is it any wonder that there is always under-ultilised funds, as no MFI would want to find itself in a situation whereby there may be no money left for needy patients before the year ends?

So, does it mean that total disbursements from Medifund for the year may be more dependent on the interest from the Medifund Endowment Fund, rather than the needs of patients?

Endowment transfers means less Budget surplus?

The Medifund and Medifund Silver Endowment funds now stand at $3,740 million, with a capital injection of $600 million in the last financial year. In this connection, our Budget surpluses may have been in a sense, under-reported in comparison with other countries, as such transfers are made almost annually to the various endowment funds, like Medifund and the ComCare fund.

Leong Sze Hian

Leong Sze Hian is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, Wharton Fellow, SEACeM Fellow and an author of 4 books. He is frequently quoted in the media. He has also been invited to speak more than 100 times in 25 countries on 5 continents. He has served as Honorary Consul of Jamaica, Chairman of the Institute of Administrative Management, and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and 13 professional qualifications. He blogs at http://www.leongszehian.com.

seletar

25-02-13, 10:09

http://www.tremeritus.com/2013/02/25/ch8-real-time-live-poll-92-5-voted-to-reduce-foreign-population/

Ch8 live poll: 92.5% vote to reduce foreign population

Last Friday (22 Feb), Singapore’s Chinese TV channel – Mediacorp Channel 8 – featured a live forum ‘Frontline Connects 《前线开讲》’ where some guests, including Minister in the Prime Minister’s Office Grace Fu, were invited to give their views on the Population White Paper.

During the show, the public were encouraged to send in their views by calling the hotline or by SMS. They could also participate in a live online poll through www.xinmsn.com/frontlineconnects (http://www.xinmsn.com/frontlineconnects). The question was:
如果减少外来人口，你能接受较低的经济增长率吗？
If the foreign population is reduced, can you accept a lower rate of economic growth? (translated to English with the help of Google Translate)

In the first 45 minutes of the live program, there was video footage of interviews with ordinary Singaporeans which gave the impression that most Singaporeans support the White Paper.

Blogger Lucky Tan says (‘Frontline Connects 《前线开讲》: White Paper on Population (http://www.tremeritus.com/2013/02/23/frontline-connects%e3%80%8a%e5%89%8d%e7%ba%bf%e5%bc%80%e8%ae%b2%e3%80%8b-whitepaper-on-population/)‘):
The programme started by saying that the White Paper by the govt has created plenty of “interest” among Singaporeans. It does not say anything about the anger it has caused and not a word about the biggest protest in Singapore for several decades against the White Paper.

They showed a segment in which every man and woman they interviewed on the street before the show supported the White Paper. The panel consisted of members who generally supported the White Paper with some concerns such as transport and housing that the govt has already admitted are problems.

Good old-fashioned propaganda.

Then something incredible happened towards the end of the show. When the polling results were tallied, an astonishing 92.5% of online voters were happy to accept a lower rate of economic growth with a reduced foreign population:
http://www.tremeritus.org/wp-content/uploads/2013/02/ch8poll.jpg?9d7bd4 (http://www.tremeritus.org/wp-content/uploads/2013/02/ch8poll.jpg?9d7bd4)
The results:

92.5% can
7.5% can’t(See YouTube video at 47:45)

The host then asked Grace Fu if she would comment on the results.

Incredibly, she changed the interpretation of the question, saying (starting 48:10):
“Actually, we need to look at this question carefully [Ed. her voice wavers a bit here, showing she is surprised by the results]
When we say “reduce the foreign population”, do we mean sending them back right away?

Or are we talking about the foreign population growth rate?

I believe most Singaporeans are saying we should reduce the rate of growth of the foreign population and not demand that they be sent back home immediately.

In this regard, the government is actually in the process of reducing the growth rate of the foreign population.

At the same time, we are also carefully considering how to ensure that Singapore remain economically attractive.

We have to rely on many foreign enterprises and we do not want to drive them away.”

Then the host asked Grace Fu to conclude for the show and the Minister blathered on about how the White Paper is supposed to be good for Singaporeans and their children, etc.

seletar

25-02-13, 10:12

http://www.tremeritus.com/2013/02/24/australia-tightens-work-visas-for-foreign-workers/

Australia tightens work visas for foreign workers (http://www.tremeritus.com/2013/02/24/australia-tightens-work-visas-for-foreign-workers/)

February 24th, 2013

The Australian government is tightening its “457″ visa program (equivalent to Singapore’s S-Pass or Employment Pass) for foreign workers, saying it has evidence the program is being used to discriminate against local Australians.

Australian immigration Minister Brendan O’Connor revealed, “It has become clear that the growth in the 457 program is out of step with genuine skills shortages and the Government has evidence that some employers are using 457 visas to employ foreign workers over locals.”

He added, “We do not want to punish those employers who have genuine skill shortages and who are using 457 visas in the way that the system is intended. But my message to those employers who are either flouting the rules or deliberately overlooking local employees is that the government will not accept these practices.”

“Rogue employers are deliberately employing people from overseas without giving a local a chance.”

The number of 457 visas has soared from 70,000 to 100,000 in the past two years.

The Australian Govt announced the following changes yesterday (23 Feb):

Extra investigation powers for inspectors to get information from bosses they suspect of being dodgy.
A new test to prove jobs were for “genuine” skills shortages because some employers were creating positions that were really “unskilled and possibly not even a real job”.
Closing loopholes that allow foreign workers to be paid less than an Australian citizen by increasing from $180,000 to $250,000 the threshold at which they must pay “market rates”.
Stopping employers creating their own market to manipulate pay rates.
Raising requirements for foreign workers to speak English.
Restricting foreign workers being on-hired to a different employer in regions where there are not skill shortages.
Checking that employers offer training for locals to fill skills shortages before they seek foreigners. Mr O’Connor said, “The Government cares about Australians getting jobs first.”

It has found Australians earning A$220,000 were undercut by foreigners willing to accept A$180,000. Pay levels have also been especially manipulated in the IT industry in Melbourne.

The authorities even found a loss-making “start-up”, created just to secure cheap foreign workers.

Mr O’Connor told reporters, “We have seen too many examples of abuse across the nation. There are situations where Australian workers are being discriminated against because of the abuse of the program.”

“We have seen situations where people’s jobs have been `dressed up’ to be so-called skilled jobs but in fact when they come here they are working in unskilled or semi-skilled areas.”

Dave Oliver, secretary of Australian Council of Trade Unions (ACTU), said, “It doesn’t make sense. Local jobs are disappearing and yet there is a significant increase nationwide of the amount of 457 visas that are being granted.”

“We’ve seen this for too long as a lazy option for employers. It’s just a matter of a tick-and-flick form where they can bring workers from overseas, as opposed to investing in their own workforce.”

seletar

25-02-13, 12:50

http://sg.news.yahoo.com/singaporeans’-big-budget-hope--reduce-cost-of-living-032059534.html

Singaporeans’ big Budget Day hope: Reduce cost of living

http://l1.yimg.com/bt/api/res/1.2/JyIKXkigGHkXJpStnaEpkg--/YXBwaWQ9eW5ld3M7Zmk9Zml0O2g9MjA-/http://media.zenfs.com/246/2011/03/17/ynewslogo-071424_075919.pngBy Shah Salimat (http://sg.news.yahoo.com/blogs/author/shah-salimat/) | Yahoo! Newsroom – Sat, Feb 23, 2013

http://l.yimg.com/bt/api/res/1.2/bjp1nbQEwCTRrVJWlUxaNg--/YXBwaWQ9eW5ld3M7Y2g9NDAwO2NyPTE7Y3c9NjMwO2R4PTA7ZHk9MDtmaT11bGNyb3A7aD00MDA7cT04NTt3PTYzMA--/http://l.yimg.com/os/publish-images/news/2013-02-22/6911eda3-f9e9-4887-a5f0-8167f03d469a_630yahoo_coffeeshop1.jpg (http://sg.news.yahoo.com/photos/singaporeans-want-to-see-more-help-accorded-in-the-upcoming-budget-to-combat-rising-living-costs-photo-84938967.html)
Singaporeans want to see more help accorded in the upcoming Budget to combat rising living costs (Yahoo! file photo)

Help to cope with the rising cost of living was the biggest wish among Singaporeans that Yahoo! Singapore interviewed in the lead-up to Monday’s budget speech by finance minister Tharman Shanmugaratnam.

That hope was similarly reflected in the results of a feedback exercise by REACH (http://www.reach.gov.sg/Microsite/Budget2013.aspx) in the past three months in which Singaporeans expressed the most concern over employment, transport and housing.

High inflation has led to growing public discontent (http://sg.news.yahoo.com/cost-of-living-was-no-1-factor-for-punggol-east-vote-swing--survey-181457181.html) over government policies, particularly on immigration as many citizens blame the influx of immigrants in recent years for strains on infrastructure, stagnation of wages and the increasing cost of living. Last year, Singapore’s consumer price index rose 4.6 per cent from a year earlier, fuelled by increases in housing and transport prices.

According to REACH, many Singaporeans hoped more would be done to ensure citizens remain employed with good jobs and wages that kept pace with inflation and rising living costs. Some also called for the nationalisation of the public transport system, and the revision of the Certificate of Entitlement and Electronic Road Pricing schemes.

On housing, contributors to the feedback exercise suggested tightening the rules on subletting of public housing by permanent residents and providing more help for the elderly who are still servicing HDB loans.

Comments on Yahoo! Singapore’s Facebook post (https://www.facebook.com/photo.php?fbid=10151382536623001&set=a.500988983000.268372.345185573000) pertaining wishes for the budget range from assisting the poor much more in food and transportation to cope with rising living costs, to reducing defence budgets and ministerial pay packages. A frequently-raised concern was also the price of housing.

Costs and kids

Singaporeans interviewed by Yahoo! Singapore talked about their worries over rising costs and wage levels that have changed little over the year.

41-year-old sales manager Amylia A. has moved home twice and has seen cash-on-valuation (COV) prices for HDB flats rise dramatically. After selling her first flat, she only had to pay $5,000 upfront to purchase her first resale flat in 2000, but in 2010, she had to fork out a total sum of some $88,000 upfront to buy her second resale flat. When asked if she wants to move again, she said, “How to?”

“On top of the COV, you have to pay half of the loan approved under the HDB Loan Eligibility as cash up front. The reason HDB gives for this is because they want us to ask for a smaller loan. We cannot afford to fork out such sums. I have kids to feed,” said the mother of four.

Amylia calls for COV prices for resale units to be controlled and upfront cash payments to be reduced. She also hopes that she can use some of her Medisave money to offset the cost of medical treatments such as dental and skin treatment.

Rabiatul Adawiyah, 28, has been married for three years to her husband but said that the high cost and current complexities in having a baby have put the couple off procreation. She said that her salary has not caught up with inflation rises, much less overtake it.

“The both of us need to work in order to have the money to support a child. It’s one thing not to have the time to look after your child. Childcare is expensive and maids have high levies. My friends who have children told me not to get pregnant,” Rabiatul said.

Rabiatul also said that schemes introduced in the recently-revamped Marriage & Parenthood Package are “not enough”. She cited the baby bonus scheme of up to $8,000 for third and fourth births as only being a one-off measure, and the six days of childcare leave as too little a period in case the child needs extra care.

Financial security

Younger Singaporeans’ main concerns centred on the cost of education.

Constance Lim, 20, counts herself lucky that her parents are able to pay off her private degree with the University of Buffalo in the Singapore Institute of Management. The course is worth more than $65,000. However, she is worried others may not be able to afford private study if they cannot meet the cut for public universities.

“As much as possible, all the options for varying education paths should be open to everyone, financially capable or otherwise. More scholarships and bursaries should be opened for the sandwiched class. If you help them, they will help you back by contributing to the economy and society later in life,” said Lim.

For Angel Coco Chen, 20, her main worry is in getting a job after her design communications degree at LaSalle College of the Arts, to be able to settle her study loans fast and anticipate future expenses. “If they want to help students they must fund the industry. Then, our high fees and costly miscellaneous materials would be less of a gamble,” said Chen.

Businesses are hoping for more measures geared towards reducing the effects of rising costs.

Speaking to Channel NewsAsia (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1253519/1/.html) (CNA), the CEO of the Singapore Business Federation (SBF), Ho Meng Kit, said that an SBF survey within the business community revealed that “70 percent did not find (the 2012 Budget) useful”.

The Singapore National Employers Federation (SNEF) also said to CNA that it hopes to see measures to help companies simplify working processes and spend less per unit item. In last year’s budget (http://sg.news.yahoo.com/blogs/singaporescene/singapore-gov-t-tighten-foreign-worker-quota-081803198.html), the proportion of foreign workers was cut by 5 per cent in manufacturing and service industries each.

The Budget that will be presented to the public by the finance minister is usually a government-approved one.

In the process of Budget debates (http://www.singaporebudget.gov.sg/budget_2013/about_budget.html), parliament members are expected to question past and future expenditures.

Tharman will deliver the hour-long Budget at 3.30pm on February 25. The public will be able to view a live webcast of the announcement here (http://www.singaporebudget.gov.sg/). The public can also listen and view the Budget speech live while on-the-go by downloading the free SG Budget 2013 app for iPhone and Android smartphones on the App Store and Play Store, respectively.

seletar

25-02-13, 12:59

http://sg.news.yahoo.com/worker’s-party‘s-population-paper-calls-for-higher-citizen-numbers-043529543.html;_ylt=AiCR8eBYJAqZMMX0.hXw5tMCV8d_;_ylu=X3oDMTNyNTE4djFwBG1pdANNZWdhdHJvbiBTaW5nYXBvcmUEcGtnAzQ1NmYwZWQyLWI3MGItMzdmMy04Mjc4LWE5NTBmZDJkZmEzNwRwb3MDMQRzZWMDbWVnYXRyb24EdmVyA2EyNWE2NmUzLTdlM2ItMTFlMi1iZWQ1LWUxMzJmMmRmN2ZiYg--;_ylg=X3oDMTFuZGgwbmp1BGludGwDc2cEbGFuZwNlbi1zZwRwc3RhaWQDBHBzdGNhdANzaW5nYXBvcmUEcHQDc2VjdGlvbnM-;_ylv=3

Worker’s Party‘s population paper calls for higher citizen numbers

http://l1.yimg.com/bt/api/res/1.2/JyIKXkigGHkXJpStnaEpkg--/YXBwaWQ9eW5ld3M7Zmk9Zml0O2g9MjA-/http://media.zenfs.com/246/2011/03/17/ynewslogo-071424_075919.png
By Shah Salimat (http://sg.news.yahoo.com/blogs/author/shah-salimat/) | Yahoo! Newsroom – Sun, Feb 24, 2013

http://l3.yimg.com/bt/api/res/1.2/xSNva1wRK.75HHqekU6ryQ--/YXBwaWQ9eW5ld3M7Y2g9NDczO2NyPTE7Y3c9NjMwO2R4PTA7ZHk9MDtmaT11bGNyb3A7aD00NzI7cT04NTt3PTYyOQ--/http://l.yimg.com/os/publish-images/news/2013-02-23/3e0c733d-38c7-407c-89fe-e150008483d5_630yahoo_wp.jpg (http://sg.news.yahoo.com/photos/exterior-of-the-workers-party-headquarters-in-syed-alwi-road-the-party-released-its-population-photo-175811756.html)
Exterior of the Workers' Party Headquarters in Syed Alwi Road. The party released its population policy paper to the public to spur greater debate. (Yahoo! file photo)

The opposition Worker’s Party (WP) has issued its population policy paper (http://wp.sg/wp-population-policy-paper/) to the public to spur greater debate.

The government’s own white paper had been subject to debate at Parliament before an amended motion endorsing it passed the House (http://sg.news.yahoo.com/pm-lee-makes-passionate-appeal-for-population-white-paper-in-parliament-082910512.html).

Public anger over the paper, which projects that Singapore's population will grow to as much as 6.9 million in 2030 of which nearly half would be foreigner, drew several thousands to a protest on 16 February (http://sg.news.yahoo.com/huge-turnout-at-speakers--corner-for-population-white-paper-protest-101051153.html).

In a statement Saturday, WP secretary-general Low Thia Khiang said the party decided to publish its policy paper to “enable Singaporeans to better understand the rationale and computations behind WP’s proposal” made in Parliament.

In WP’s paper, the party predicts that by 2030, the city-state's population would be between 5.6 to 5.8 million, of which around 60 per cent of it will consist of citizens.

WP came up with their population projection based on the assumption that total fertility rate would increase to 1.75 and labour force participation would rise to 78.7 per cent, both higher than the government paper's. The policy paper also projected GDP growth of 1.5 to 2.5 per cent in the next decade.

WP said such numbers could be achieved even by freezing foreign workforce growth and raising the resident workforce by 1 per cent per year, through to 2030.

Measures

The party noted the importance of boosting local workers’ participation in the labour force, especially among women and senior citizens.

The paper campaigned for women to receive more flexi-work arrangements and senior citizens to have friendlier work environments so that companies can tap into their expertise.

WP lambasted the government’s immigration policy and insisted that boosting Singaporean birth rates “without the distraction of immigration top-up” was the way forward to maintain a strong Singaporean core.

However, the policy paper emphasised WP was not “anti-foreigner”.

To combat declining birth rates, WP proposed a “whole-of-Government” approach. This includes doling out incremental housing grants for subsequent childbirth, initiating bonding leave for fathers with young children, and extending parenthood benefits to single parents.

The paper proposed taking in a lower number of new citizens at 10,000 each year, as opposed to the 15,000 to 25,000 proposed in the white paper.

The paper also criticised the government’s land use plan as one that “will increase overall population density”.

Government backbenchers have reacted negatively towards WP’s proposals.

Minister for Prime Minister’s Office S Iswaran called them “
drastic and inherently risky (http://sg.news.yahoo.com/wp-proposal-is-drastic-and-inherently-risky--s-iswaran-052728130.html)”, while Minister for Prime Minister’s Office Grace Fu posted on her Facebook page (https://www.facebook.com/photo.php?fbid=429810693761678&set=a.124022907673793.24921.122003934542357) Saturday that WP’s proposed foreign labour growth freeze would “cause great hardship to Singaporeans and SMEs”.

In response to the critique, the policy paper stressed its intention of also promoting resident workforce growth in the short term and boosting birth rates in the long term, as opposed to what WP perceives as the government’s intention of “(feeding) workforce growth with mainly immigrant workers”.

All nine WP parliamentarians voted against the government white paper.

seletar

25-02-13, 13:07

http://sbr.com.sg/hr-education/news/singaporeans-must-save-5033-month-comfy-retirement

Singapore Business Review
HR & EDUCATION | Staff Reporter, Singapore
Published: 25 Feb 2013

Singaporeans must save $5,033 a month for 'comfy retirement'

That's a whopping 66% of their yearly wage.

According to HSBC's latest study Future of Retirement: A New Reality, in order to live comfortably during retirement, people in Singapore indicate that they will require 66% (or two-thirds) of their current annual household income which works out to be S$60,400 or S$5,033 per month.

This is 68% more than in the last 2011 study where the figure was S$3,000. Singapore’s income replacement ratio, together with Australia (also 66%), is the lowest across 15 countries surveyed where the global average is 78%.

Cash remains a big part of Singaporeans’ wealth portfolio. On what makes up retirement income, the study found that the largest proportion will come from cash savings and deposits which constitutes a third (34%) of retirement income here, followed by investments (19%), and property income and assets (12%).

This reliance on cash to fund one’s retirement income is reinforced by another finding where over two-thirds (69%) of Singapore respondents expect cash savings and deposits to contribute towards their retirement income, followed by life insurance (54%), stocks and shares (37%), and income generated from property (36%).

phantom_opera

25-02-13, 13:35

5k pm ... peanut lah .. HDB rental already 3kpm

so when u retire:

1. Live in MM, rent out HDB for 3kpm
2. Draw 1k from CPF every month (including CPF Life)
3. Buy 10y bond using cash, draw another 1k pm

and ask your only son to marry the only girl from another family with at least 2 properties ... SET !!!

Rysk

25-02-13, 13:47

5th Oct 2012

All these are tell tale signs that price will be looking UP UP UP further in the coming months :scared-1: :scared-1: :scared-1:

I have already warned MR B once during Aug this year.. just be prepared for another round in Feb/Mar next year..
I've already warned MR B on 5th Oct 2012.. but now is too late for him.. even think of buying a HDB flat now.. sigh

Record S$1.01m for HDB flat sold in Bishan
http://www.propertyguru.com.sg/property-management-news/2013/2/35251/record-s-1-01m-for-hdb-flat-sold-in-bishan

Rysk

25-02-13, 14:19

and ask your only son to marry the only girl from another family with at least 2 properties ... SET !!!

Now my son is eyeing the only girl from a family who own 2 units in Hamilton Scotts.. said that whoever marry their daughter.. he will give out 1 for their son-in-law & 1 for the father-in-law as a present..

seletar

26-02-13, 16:19

http://www.bloomberg.com/news/2013-02-25/singapore-to-raise-property-tax-rates-for-luxury-homeowners.html

Singapore to Raise Property Tax Rates for Luxury Homeowners

By Pooja Thakur & Sharon Chen - Feb 26, 2013 1:41 PM GMT+0800

Singapore plans to raise taxes for luxury homeowners and investment properties, widening a four- year campaign to curb speculation after prices in Asia’s second- most expensive housing market rose to a record.

The higher tax will apply to the top 1 percent of homeowners who live in their own residences, or 12,000 properties, Singapore Finance Minister Tharman Shanmugaratnam (http://topics.bloomberg.com/tharman-shanmugaratnam/) said in his budget speech yesterday, without giving a definition of what constitutes a high-end home. The government will also raise tax rates for vacant investment properties or those that are rented out, he said.

Singapore joins Hong Kong (http://topics.bloomberg.com/hong-kong/) in extending anti-speculation measures as low interest rates (http://topics.bloomberg.com/interest-rates/) and capital inflows drive up demand and make housing unaffordable. Residential prices in Singapore climbed to a record in the fourth quarter as an increase in the number of millionaires drove up demand.

“The graduated property tax on luxury properties may impact investors, particularly corporates and high-net-worth investors,” Petra Blazkova, head of CBRE Research for Singapore and Southeast Asia (http://topics.bloomberg.com/southeast-asia/) said in a statement. “It may put pressure on the holding cost of investment properties held by developers and investors.”

The property index (http://www.bloomberg.com/quote/FSTRE:IND) tracking 39 developers fell 0.8 percent to a one-month low as of 1:23 p.m. in Singapore trading. CapitaLand Ltd. (CAPL) (http://www.bloomberg.com/quote/CAPL:SP), Singapore’s biggest developer by assets, declined 0.5 percent to S$3.90. City Developments Ltd. (CIT) (http://www.bloomberg.com/quote/CIT:SP), the second largest, slid 0.9 percent to S$11.25.

Hong Kong

Singapore’s latest efforts were announced three days after Hong Kong increased property taxes. The Hong Kong government last week doubled sales taxes on property costing more than HK$2 million ($258,000) and targeted commercial real estate for the first time as bubble risks spread in the world’s most expensive place to buy an apartment.

“The property tax is a wealth tax and is applied irrespective of whether lived in, vacant or rented out,” Shanmugaratnam said. “Those who live in the most expensive homes should pay more property tax than others.”

For a condominium occupied by the owner in Singapore (http://topics.bloomberg.com/singapore/)’s central region with an assessed annual rental value of S$70,000 ($56,547), the tax will rise 5 percent to S$2,780, according to the budget statement. If that home is rented out, the tax will climb 21 percent to S$8,500, according to an example highlighted in the statement.

Based on a 3 percent rental yield, that property is worth S$2.3 million. Gains in levies for properties assessed at higher rental values will also increase at a faster pace, it said. For a house with an assessed rental value of S$150,000, worth S$5 million based on the same yield assumption, the tax will rise 60 percent to S$24,000. The revised taxes will take full effect from January 2015, according to the statement.

Singapore is Asia (http://topics.bloomberg.com/asia/)’s most-expensive housing market after Hong Kong, according to a Knight Frank LLP and Citi Private Bank report released last year that compared 63 locations globally.

‘Wealth Tax’

“It is a wealth tax,” Yee Jenn Jong, a non-elected member of parliament from the opposition Workers’ Party, told reporters. “There’s been a lot of people that have made a lot of money through property and the government is using that as a way to get additional revenue to offset certain goodies they’re giving to those in the lower income.”

Singapore has since 2009 imposed measures to cool the property market (http://topics.bloomberg.com/property-market/). The government last month said home buyers have to pay 5 percentage points to 7 percentage points more in stamp duties. It also imposed the added levies for permanent residents when they buy their first home, while Singaporeans will have to pay the tax starting with their second purchase.

Foreign Labor

In the budget, Singapore also tightened curbs on foreign labor for a fourth consecutive year, as the government seeks to reduce companies’ reliance on overseas workers amid a public backlash over the influx.

Increasing wealth in the island-state has contributed to rising property prices. Singapore’s millionaire households rose by 14 percent in 2011, according to a Boston Consulting study. The proportion of millionaire homes in the city of 5.3 million people was 17 percent, the highest in the world, followed by Qatar and Kuwait (http://topics.bloomberg.com/kuwait/).

“From a progressive tax view point, it’s to be expected and probably quite fair,” said Tan Su Shan, managing director of wealth management (http://topics.bloomberg.com/wealth-management/) at DBS Group Holdings Ltd., who’s also a nominated member of Parliament. “From a developers’ point of view, it’s yet another pill to swallow.”

To contact the reporters on this story: Pooja Thakur in Singapore at [email protected] ([email protected]); Sharon Chen in Singapore at [email protected] ([email protected])

seletar

26-02-13, 16:23

http://www.businesstimes.com.sg/breaking-news/budget/no-more-tax-refunds-vacant-properties-20130225

No more tax refunds on vacant properties

By Lee U-wen
The Business Times
Monday, Feb 25, 2013

THE government will do away with the current concession that provides tax refunds on vacant properties in order to achieve "consistency and equity" in tax treatment.

This, said Finance Minister Tharman Shanmugaratnam on Monday in his annual Budget speech, is a "fair" move given the new measures to have a more progressive property tax schedule on residential properties.

"Property tax is a tax on property ownership and should be levied irrespective of whether the property is vacant or occupied," said Mr Tharman.

These changes will take effect from January 1 next year.

seletar

26-02-13, 16:34

http://www.stproperty.sg/articles-property/singapore-property-news/completed-and-unsold/a/106415

Completed and unsold

No takers for many high-end condos but supply not slowing any time soon

The Straits Times (http://www.straitstimes.com/) - February 23, 2013
By: Esther Teo, Property Correspondent

THE anaemic high-end property market is still languishing as foreign buyers flee the market in the wake of the string of cooling measures and the residual sting of the global financial crisis.

New analysis by R'ST Research has identified almost 500 completed but unsold homes in upmarket districts 9, 10 and 11.

And there are thousands more in the pipeline.

R'ST Research director Ong Kah Seng said 9,295 non-landed high-end homes were under construction by the end of last year.

Of these, about 44 per cent - or 4,077 units - remain unsold. A majority have sale licences but are not even launched as developers bide their time in a down market.

The unsold completed homes include the 241-unit Hilltops (http://www.stproperty.sg/condominium-directory/hilltops-condo/11792) in Cairnhill Circle (http://www.stproperty.sg/property-for-sale/search/cairnhill-circle), finished in mid-2011 with 195 units unsold, and Treasure on Balmoral (http://www.stproperty.sg/property-for-sale/search/treasure-on-balmoral) with all of its 48 units unsold. It received its temporary occupation permit in the fourth quarter of last year.

Others include Hamilton Scotts (http://www.stproperty.sg/condominium-directory/the-hamilton-scotts-condo/11811), The Trizon (http://www.stproperty.sg/condominium-directory/the-trizon-condo/12054), The Ritz-Carlton Residences (http://www.stproperty.sg/condominium-directory/the-ritz-carlton-residences-condo/11825) Singapore and 111 Emerald Hill (http://www.stproperty.sg/condominium-directory/111-emerald-hill-condo/12152).

The whopping supply of high-end homes in the pipeline is likely to keep prices depressed.

Already, a Jones Lang LaSalle (JLL) report found that prices of luxury homes fell 5.6 per cent last year compared to 2011. Singapore was one of only two cities in Asia - the other being Shanghai - to have registered a price fall.

Experts say that while the introduction of the additional buyer's stamp duty has hurt the market, diverting foreign buyers to other global cities like London and Sydney, the weakened buying interest first began during the global financial crisis in 2009.

Wealthy buyers have been more cautious since then, especially those from countries whose domestic economies are also faltering.

"The significant price corrections of high-end homes probably reflected that prices of such homes, which escalated to all-time highs in 2007 and early 2008, were unsustainable and were not supported by firm economic and property fundamentals," noted Mr Ong.

Mr Joseph Tan, CBRE's executive director of residential, said that prices may come under further pressure due to lower sales volumes expected this year.

"With the likelihood of the luxury sales market being dominated by the sale of older properties in the resale market, we expect a marginal correction of 5 to 10 per cent this year," he noted.

Mr Chris Fossick, managing director for JLL in Singapore and South-east Asia, agreed that prices in the luxury non-landed market here have eased partly due to cooling measures which have reduced the number of buyers.

"While the cooling measures will remain in place, it is unlikely that prices will rise.

"The medium- to longer-term outlook for the luxury condominium market, however, looks good as Singapore's economy and population are expected to grow."

On the rental front, leasing activity slowed down somewhat but rents held steady and remained at $5.10 per sq ft, unchanged from a year ago, CBRE's data showed.

However, Savills' analysis of leasing data from the fourth quarter of last year found that larger apartments and those in the prime districts are not getting tenancy traction.

They have seen rents fall by up to 15 to 22 per cent since the middle of 2010, its Singapore research head Alan Cheong noted.

seletar

26-02-13, 16:51

http://sbr.com.sg/residential-property/exclusive/singapore-budget-2013-how-its-going-affect-property-market

Singapore Business Review
RESIDENTIAL PROPERTY | Krisana Gallezo, Singapore
Published: 26 Feb 2013

Singapore Budget 2013: How it's going to affect the property market

Luxury market will be hardest hit.

The key themes behind Budget 2013 are continuation of the economic restructuring plan and the building of a more inclusive society. The Finance Minister explained that it is important for Singapore to succeed in its economic restructuring given the stage of Singapore’s economic development and its demographic profile.

Nomura analyst Min Chow Sai notes that to create a progressive tax structure, the government has imposed higher property taxes on luxury residential investment properties and created wider bands for owner-occupied residential properties based on the annual value of the properties.

Here's what analysts had to say:

Alan Cheong, analyst, Savills

New marginal property tax rates of 12% to 20% for non-owner-occupied residential properties will be introduced. By this, it wouldn’t have much of an impact as rents are determined by the forces of demand and supply.

However, taken in circumspect, it appears that with the higher marginal tax rates added onto personal taxes, owning a high end real estate here for investment is becoming less of an attractive proposition than investing in one in a developed economy where taxes are higher. This will encourage more to take their capital overseas.

For owner-occupied residential properties, the 0% property tax band widened to 1st $8K of AV. New tax rates of 8-16% introduced. The revised progressive property tax structure for residential properties will be phased in over 2 years starting from 1 Jan 2014. 99% of owner-occupied residential properties will enjoy lower tax rates.

The point that 99% of owner-occupied residential properties enjoying lower tax rates is puzzling as there are currently about 900,000 HDB flats and 277,620 private properties.

The percentage of private and public housing is therefore 76.4% and 23.6% respectively. For 99% of owner occupiers to enjoy lower tax rates, it would mean that high rental private properties only constitute a miniscule percentage of our total housing stock.

In the illustration provided by IRAs in the file “Illustrations of property tax computation for Owner-Occupied Homes”, under Example 3, one item of the property tax rate for 2015 should perhaps be 5% (Next $5,000) instead of 6% as was published.

Current concession which provides property tax refunds on vacant properties will be removed from 1 Jan 2014. This may have serious implications on the rental market in that it could force individuals or companies, to eruct their vacant units onto the market at a time when rental budgets are constrained and the net number of employment passes issued have not been growing.

Min Chow Sai, analyst, Nomura

The increase in property taxes especially for investment residential properties could double the property taxes payable by the owner of high-end residential properties. In our view, the additional taxes will likely erode the returns on the property and undermine the rationale for investments in high-end properties in Singapore.

Tricia Song, analyst, Barclays

High-end investment properties will see the most significant increases in property tax rates - instead of the current rate of 10% flat, there will be new marginal tax rates of 12% to 20%. Even for owner-occupied residential properties, the marginal tax rates are raised from the current 0%, 4% and 6%, to include 8-16%. The 0% property tax rate band, which currently applies to the first S$6,000 of annual value of properties will be widened to S$8,000.

This will enable 950,000 owner-occupied homes (c.80% of total 1.2mn homes) to enjoy tax savings (see below), but the top-end home owners to pay significantly more. For example, a landed property in a central location for owner-occupation of for investment with an annual value of S$150,000 will see property tax increase of 69% and 60% to S$12,580 and S$24,000, respectively.

Janice Chua, analyst, DBS Vickers

The government is raising property tax rates for high end residential properties, with the largest increases applying to investment properties that are not owner occupied. At the same time, as property tax is a wealth tax, property tax rates for owner-occupied homes will also be adjusted such that a higher number of households do not have to pay property taxes.

Under the new rules, owner-occupied residential properties with annual value of S$8000 and less (compared to S$6000 and less previously) will not have to pay property taxes while those with a higher annual value bracket would see the rates increasing from 4-6% previously to up to 16%. This will be gradually put in place over the next 2 years. Under this revised scheme, 950,000 home owners will enjoy savings on property taxes.

The biggest impact is on non-owner occupied properties; the new marginal tax rates will range from 12-20% compared to 10% currently. This will affect homes with annual values of >S$30,000, which represents the top one third of all non-owner occupied properties.

Property tax rates for non-residential properties remain unchanged at 10%.

The impact of these changes on the residential sector is likely to be muted as the quantum increases are not significant. However, those in the high end are likely to see greater effect arising from higher payments of property taxes from the changes. For investment properties, if these added costs cannot be passed on in the form of higher rents, this could potentially result in an erosion of 5-10% in rental yields which currently stands at between 2.9-3.2%, thus reducing the attractiveness of owning high end assets slightly.

This could also spur holders of vacant investment property units to reconsider their options and would likely continue to dampen the demand for high end residential assets.

Our view on the residential sector remains unchanged, with a projection of a 5% decline in home prices this year while volume demand could likely moderate by up to 20%.

TravieJackie

26-02-13, 22:31

Luxury property are taxed but those that fall under aren't. Not going to make a diff for the demand for majority of middle class looking to upgrade or 1st time buyers.

Right?

seletar

27-02-13, 11:06

http://www.straitstimes.com/premium_all
Straits Times
Published 27 Feb 2013

Investors may end up with smaller rental yields

Removal of tax refund for vacant properties could compound depression

By Esther Teo Property Correspondent

SOME property investors may finish up with poorer rental returns as a result of higher property taxes on investment homes announced in Monday's Budget.

Analysts say that a second Budget measure, the withdrawal of tax refunds for vacant properties, could compound this possible depression of rental yields.

They said the more progressive property tax aimed at the well-off will raise the cost of holding some properties - and that landlords may have to absorb this cost rather than hike rents.

At the same time, more investors and firms might push currently vacant units into the market after the current concessions for such homes cease next Jan 1.

Ms Petra Blazkova, CBRE's head of research for Singapore and South-east Asia, said that the graduated property tax on luxury properties may take a toll on investors, particularly corporates and wealthy individuals.

"It may put pressure on the holding cost of investment properties held by developers and investors. At an asset level, we are likely to see yields compressing, even though only marginally."

Details from the respective ministries will provide further clarity of the full impact, she said.

The 2013 Budget, unveiled by Deputy Prime Minister Tharman Shanmugaratnam, increased property taxes for the well-off who own luxury residences and investment homes.

Besides the existing zero, 4 and 6 per cent tax rates for owner-occupied homes, five higher rates will be introduced: ranging from 8 to 16 per cent and depending on the estimated annual rental level.

This means the top 1 per cent of owner-occupied homes - or 12,000 units - will pay more tax.

For investment homes which are not owner-occupied, new marginal property tax rates of 12 to 20 per cent will be levied instead of the current flat 10 per cent rate across the board. These will be introduced in phases over two years, starting next Jan 1.

Experts added that headline rentals are unlikely to be affected simply by the change in property tax rates as they are determined by the forces of demand and supply. This means that the higher costs might have to be absorbed by the landlord instead of being passed on to the tenant since there is a healthy pipeline of homes under construction.

Net yields will likely be compressed marginally as a result, although prime homes are likely to bear the brunt of this pinch.

Savills Singapore research head Alan Cheong noted that owning a high-end property here for investment is becoming less attractive and more people may be encouraged to take their capital overseas. The removal of tax refunds for vacant properties is also a significant move, he added.

"This may have serious implications on the rental market in that it could force individuals or companies to put their vacant units on the market at a time when rental budgets are constrained and the net number of Employment Passes issued has not been growing," said Mr Cheong.

Depending on the state of the rental market, landlords could pass part or all the increased tax burden to the tenants, especially when rental demand is healthy, noted Mr Nicholas Mak, head of research at SLP International.

However, in the short run, the new tax structure may bring rental yields down. Gross residential rental yields are about 2 per cent to 3 per cent for freehold properties and 2.5 per cent to 3.5 per cent for leasehold properties now, said Mr Mak.

[email protected]

seletar

27-02-13, 11:14

http://www.businesstimes.com.sg/premium/top-stories/tax-blow-high-end-developers-20130227

Business Times
Published February 27, 2013
BUDGET 2013 (http://www.businesstimes.com.sg/budget-2013)

Tax blow for high-end developers

Latest tax moves raise holding costs, make investments less attractive

By Mindy Tan (http://www.businesstimes.com.sg/reporter/mindy-tan-0)

The move to abolish the tax vacancy refund will put more pressure on individuals and companies, particularly those with high-end residential asset portfolios.

This, combined with progressive tax rates which will see the government raising property tax rates for high-end residential homes with the largest increases applying to investment properties, means that high-end developers could potentially be hit with a double whammy.

On the one hand, developers can no longer apply for tax rebates for vacant units, thus raising their holding costs. On the other, the higher tax rates make these properties less attractive as investments.

Currently, residential properties that are fit for occupation and intended for owner-occupation but undergoing building works can get full property tax refund for a maximum period of two years. Under the new treatment, however, such properties will no longer enjoy the tax refund.

Owners can apply to the Inland Revenue Authority of Singapore to be taxed at the owner-occupier residential property tax rate for the duration of building works (up to a maximum of two years).

The abolition of this tax refund, which is due to take effect on Jan 1, 2014, is likely to push developers to take on creative pricing structures, said Donald Han, special advisor at HSR Property Group.

"This could result in strategies to see how they can offload property by devising creative pricing structures, like CapitaLand in moving units at d'Leedon and Interlace. It's been proven that if you're willing to offer attractive discounts the buyers will come like bees to honey," said Mr Han.

That being said, high-end residential developers with unsold inventory, including Wing Tai, City Developments Limited, Wheelock, Ho Bee and Keppel Land, are likely to be impacted, said CIMB in a report issued yesterday. These developers, which have unsold units largely in the prime to high-end segment, might find it even harder to sell units, said CIMB.

Separately, the removal of the tax refund concession is likely to put pressure on rental for high-end properties as more investors lower rental expectations and seek to quickly rent out their properties to offset the property taxes, said UOB Kay Hian.

This is a double blow to a sector that has already experienced consolidation in recent years due to the economic slowdown and weaker demand from foreigners.

Jones Lang LaSalle's head of research, Southeast Asia, Chua Yang Liang, said he does not expect rents to drop.

"With the White Paper's long-term growth policy plus (the implications of) the Budget, I see prices holding steady in the short term.

"The market has seen rental corrections since Q3 2011 because of the weaker expatriate demand, although signs of stabilisation are emerging since Q4 2012. I reckon its nearing a trough," said Dr Chua. "Unless there is a further shock to the system such as worsening of the eurozone, US and China markets, I don't expect major correction moving forward."

The use of this progressive tax structure to tackle inflation may prove insufficient, warned Alan Cheong, head of research at Savills Singapore: "The Consumer Price Index (which tracks rents amongst other factors) is increasing because of how we calculate rent on a per square foot (psf) basis. With constrained rental budgets, expatriates are renting smaller units which carry a higher $psf. This feeds into the CPI, and it looks like it's causing inflation. But is it inflation or just a technicality?"

"(When) interest rates pick up, yields may concurrently have collapsed because you have an over-supply of residential property in the market after forcing people to bring all their units to the market. This can cause a lot of problems. . . It's not easy to solve this when you have a lot of liquidity in the system and interest rates are low," said Mr Cheong.

seletar

27-02-13, 11:17

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1256650/1/.html

Rental market for private homes may soften: analyst

Channel News Asia
By Lynda Hong | Posted: 26 February 2013 2358 hrs

SINGAPORE: Landlords of private homes may see the rental market softening when higher property taxes kick in next year, as these investors grapple with higher holding costs.

Owning luxury or investment homes will incur higher property taxes starting January 2014.

For private homes not occupied by owners, new marginal property tax rates of 12 to 20 per cent will be levied in addition to the current 10 per cent.

Coupled with the growing number of vacant apartments, industry players say Singapore's rental market is likely to soften.

Colin Tan, research head at Chesterton Suntec International said: "With the taxes especially, on vacant properties, which means you cannot seek relief from the taxman, investors now have to be a bit more cautious in trusting what the agents or sellers are telling them. What the tax does is to increase holding costs for investors.

"Going forward, I see rentals could soften because even at today's statistics - end of last year - there have been 12,000 vacant apartments. Can you imagine under the new tax regime, the landlord will have to start to look for tenants. And that makes a big difference."

The top one per cent of owner-occupied homes, about 12,000 units, will pay more taxes. This is on top of the various stamp duties imposed from the seven rounds of cooling measures.

But experts say Singapore properties remain attractive long-term investments for foreign buyers.

Kelvin Tay, regional chief investment officer at Southern APAC, UBS, said: "The number of foreign buyers as a proportion of total buyers, has actually dropped to 7 percent.

"If you are talking about the very high-end properties, you are talking about competition from other top global cities like London, San Francisco, New York, and not just Singapore. So you have to compare the real returns from the perspective of all these jurisdictions. Then you've got to think about the regulatory regimes, the taxes that are in place."

Edmund Leow, head of tax and wealth management at Baker & McKenzie.Wong & Leow, said: "We have to look at income tax, property, capital gain tax, estate duty and all kinds of other taxes. On an overall basis, Singapore is still fairly attractive to other foreigners; most other countries are also introducing similar measures."

- CNA/xq

seletar

27-02-13, 15:28

http://www.stuff.co.nz/the-press/news/8344776/Lone-Star-founder-deported-from-Singapore

Lone Star founder deported from Singapore

STEVE KILGALLON
Last updated 13:08 24/02/2013

A founder of the Lone Star restaurant chain was deported from Singapore and fined for working illegally and hiring foreigners without work visas to launch a Kiwi- themed restaurant in the city-state.

The Fern and Kiwi, modelled on Lone Star, promised "the true flavour of classic Kiwi dining" when it opened last September - but by then management were already in trouble after staging an illegal flash-mob haka in Singapore's main shopping street to launch the restaurant.

Shane Hausler, one of five directors of the Lone Star business, went to Singapore to set up Fern and Kiwi but had only a tourist "Social Visit Pass" and was forced to leave. Three others, including two Kiwis, were also refused work visas and sent home.

"Mr Hausler was found to be running the restaurant without a valid work pass while in Singapore and illegally employing three foreigners, including one New Zealand national, to work at the restaurant, " a ministry spokesman told the Star-Times.

"He held a Social Visit Pass, which allows tourists to stay in Singapore for a short duration but does not allow them to work here. Composition fines were issued to Mr Hausler and the restaurant for the employment offences, which have been paid up. The two New Zealand nationals have since left Singapore."

Lone Star director Simon Dunlop said they were the victims of a sudden change in Singapore's employment law, the result of public dissent at the number of foreigners in the republic.

Dunlop said only one New Zealander, on a student work visa, remained on the restaurant's staff - and he'd almost given up on hiring Kiwis to work there. Another director, Steve Ward, said the Singapore Government had "not made it easy".

"Our business relies on the culture of our brand, " Ward said, "and bringing that to Singapore is very difficult when you can't employ New Zealand people."

The Singapore Ministry of Manpower said employers faced fines between S$5000 ($4,800) and S$30,000 ($29,000) and up to 12 months' jail for hiring foreigners illegally, while a self-employed foreigner without a valid work visa faced a fine up to S$20,000 and 24 months' jail.

The Fern and Kiwi offers a surf- and-turf menu, Kiwi wines and beer and New Zealand music on the stereo. In publicity at the launch, Hausler said: "We're stoked to bring a slice of true New Zealand to Singapore."

Ward said it had been tough going, and the business had been caught out by reaction to Singapore's nationalism movement.

New rules force businesses to hire Singaporean nationals before visas are granted to foreigner workers. Foreigners also need a degree from one of the world's top 200 universities, with Singapore recognising only Auckland and Otago degrees as good enough.

Dunlop has resorted to advertising online for graduates to be paid S$700 (NZ$676) a week and enjoy six weeks' free accommodation to work at the restaurant and said near-full employment in Singapore meant it was hard to find locals who wanted hospitality jobs.

The Lone Star chain began with the recently demolished Manchester St branch in Christchurch in 1988 and now has 21 restaurants nationwide; it was established by Ward and Tim Whelan, with Whelan's brother James, Jonny Phillips and Hausler making up a core of five executives who still run the franchise.

The Fern and Kiwi, said Dunlop, was meant to be the start of an Asian expansion. He said Lone Star was committed to staying but might be forced to take on a local business partner.

"Singapore has traditionally been a good place to do business and it still is - but at the moment, it is difficult, " he said.

"We know when you go into a foreign market you play by their rules and show them respect [but] if we had known what was going to happen with this employment law, we may not have proceeded. But now we are there, we will battle it out."

seletar

27-02-13, 15:42

http://leongszehian.com/?p=3150

What the Budget means for a lower-income Singaporean?

Posted on February 26th, 2013 under Articles (http://leongszehian.com/?cat=3), Budget (http://leongszehian.com/?cat=6), Jobs (http://leongszehian.com/?cat=13)

My name is John (not my real name). I am a 33 year old Singaporean worker earning $750 a month.

Disposable income drop?

Before the budget announcement, my take-home pay, after my 16 per cent employee CPF contribution was $630.

After the budget’s changes, with the eventual full restoration of my employee CPF contribution rate from 16 to 20 per cent, my take-home pay will be reduced by $30 to just $600.

To me, $30 less a month may make it even much harder for me to make ends meet.

How many low-income workers?

In this connection, according to the article “Leveling the playing field for workers” (Sunday Times, Dec 9) -

“It is no coincidence that most local low-wage workers toil in industries that depend on foreign migrants.

As of earlier this year, there were around 110,000 locals who earned less than $1,000 a month – excluding employer’s CPF contributions – despite working full-time, though their numbers have dwindled in the past two years. Some, like cleaners, have quietly battled both rising costs of living and falling wages.”

If there are about 110,000 locals working full-time who earn less than $1,000, how many workers including part-time workers earning about $750 and are below age 35 are there – who may be adversely affected by the CPF restoration, like me?

Not old enough to get Workfare?

I don’t qualify for Workfare because I am not 35 years old or older.

Not old enough to get Medisave top-up?

I don’t get the one-time Medisave top-up of $200 as I am not age 45 or older.

I don’t get the GSTV Medisave Special Payment, as I am not 65 years or older.

Don’t earn enough to pay income tax?

The Income Tax rebate does not apply to me as I don’t earn enough to pay income tax.

Wage Credit Scheme means pay increase?

I doubt as to whether my employer will increase my pay by much, due to the 40 per cent subsidy under the Wage Credit Scheme, as I and most of my fellow workers are paid more or less on a hourly basis.

More or less GST Offset?

As to the GSTV Cash Special Payment of $250, it seems to be in totality even less than the GST Offset package when it was first implemented in 2007. (“GST Offset much lower now for lower-income? (http://leongszehian.com/?p=2423)“, Dec 31)

Why give less under the GSTV scheme compared to the original GST Offset package, and then give apparently more now under the budget announcement, which in totality may still be less than the original GST Offset package?

Negative real median income growth?

With regard to the real household income per member (including employer CPF contributions) of Singaporean-headed households with at least one employed person, increasing cumulatively by 10.2 per cent or 1.96 per cent per annum from 2007 to 2012, it may be of little meaning to me as my pay has not been catching up with inflation. Also, why is it that the real median income growth (excluding employer CPF contributions) was negative in 2012, 2011, 2009 and 2008, and only 0.5 per cent in 2010?.

$600,000 lifetime benefits?

As to “In total, over a lifetime, a young low-income couple with two children can expect to receive more than $600,000 in benefits in real terms (2013 dollars)”, with my low pay, I doubt if I will ever be able to find a spouse.

I understand that in the advanced countries (and I have been told that Singapore is an advanced country), basic social services like healthcare, education, etc, and decent wages that provide a reasonable standard of living, don’t get counted as “$600,000 in benefits”!

So, the budget statement’s rhetoric that it is for a more inclusive society, may mean very little to me, and others like me.

(Note: John is a fictional character)

Leong Sze Hian

seletar

27-02-13, 15:58

http://leongszehian.com/?p=3102

GIC: Distinquish between “transparency” and “accountability”?

Posted on February 24th, 2013 under Articles (http://leongszehian.com/?cat=3), Classics (http://leongszehian.com/?cat=49), Investing (http://leongszehian.com/?cat=42)

I refer to the article “‘Judge GIC on its long-term returns’” (Sunday Times, Feb 24).

GIC has attracted criticism?

It states that “But GIC has attracted criticism at home for various reasons, including not giving enough details of Singapore’s reserves.

3.9 per cent real rate of return?

GIC’s report out last year showed that it earned an annualised 3.9 per cent real rate of return over 20 years. In other words, the annual return was 3.9 per cent above the global rate of inflation.

Distinquish between “transparency” and “accountability”?

As to the questions of how much detail to release about returns and investment strategies, Mr Ng is keen to distinquish between “transparency” and “accountability”.

While many call for increased transparency, Mr Ng argues that what they are asking for, in substance, is accountability and that he feels is a valid request.

“It is reasonable for the Government to hold the GIC management accountable for its performance and the public to hold the Government and GIC accountable,” he said.

GIC does offer more points of comparison since two years ago. It now provides the five- and 10-year return of a portfolio made up of stocks and shares that a pension fund might hold.

Over time though, Mr Ng admits that there may be more information disclosed as GIC tries to respond to the challenge of helping the public understand what it does.

It’s a constant communication process.”

Rate of return in US$?

Reading the above, you may not realise that the rate of return referred to was in US$ and not S$.

In this connection, I thought it may be interesting to reproduce what I wrote about the GIC’s annual report last year:-

I refer to the article “GIC’s real rate of return over 20 years steady at 3.9% (http://business.asiaone.com/Business/News/Story/A1Story20120731-362389.html)” (Straits Times, Jul 31).

No more S$ returns?

In the past, the GIC used to give the returns in S$ terms as well, instead of just US$.

So, why is it that this year’s GIC annual report (http://www.gic.com.sg/data/pdf/GIC_Report_2012.pdf)once again reports the returns in US$ only?

As the S$ has been appreciating against the US$, how much lower would the returns be in S$?

Have 20-year real returns, but no 5 and 10-year?

I find it rather strange that GIC’s report gives the annualized real rate of return over a 20-year period, but not the real rate for 5 and 10 years.

If it can give the nominal returns for 5, 10 and 20 years, why can’t it give the real returns for 5 and 10 years too?

For example, as the 5-year nominal return was only 3.4 per cent, what was the real return?

GIC returns reporting like a chameleon?

For example, GIC reported its 20-year nominal returns in both US$ (5.7%) and S$ (4.4%), in its 2009 report (see HERE (http://www.gic.com.sg/data/pdf/GIC_Report_2009.pdf)). It also gave the real return in S$, at 2.6 per cent, but not in US$.

However GIC’s 2010 and 2011 reports only gave returns in US$. Which means that the report went from reflecting no real US$ returns in 2009, to only real US$ returns in 2010 and 2011, being 3.8 per cent and 3.9 per cent respectively (see HERE (http://www.gic.com.sg/data/pdf/GIC_Report_2011.pdf)), and no longer in S$. Why is this so?

In its 2011 report, GIC disclosed the 5 and 10-year nominal US$ returns (being 6.3 per cent and 7.4 per cent respectively), instead of just the 20-year returns in previous reports. However, the then new 5 and 10-year returns were only given in nominal and not real terms? And again why were the returns not reflected in S$?

GIC vs Temasek?

Since Temasek gives its returns from inception, why can’t the GIC do the same?

As GIC gives the rolling 20-year returns, why can’t Temasek do the same too?

Otherwise, it may be difficult to compare GIC and Temasek’s returns. It is akin to trying to match two different rulers with different measurements.

As if trying to watch one chameleon was hard enough – try watching to keep track of two!

Returns help Government spending?

With regard to “”GIC’s investment returns flow through to the government budget which then allows the Government to spend on different areas”", I thought it may also be interesting to reproduce what I wrote about the Reserves’ Net Investment Returns (NIR) contribution last year:-
I refer to the article “Social spending – where will money come from?” (Straits Times, Sep 4).

How much total reserves?

It states that “If you add the three pools of reserves up, you get about $800 billion. A very modest 2 per cent return on that comes up to $16 billion a year.

The Net Investment Returns (NIR) contribution last year was $7.91 billion. And even if we assume that the NIR contribution last year had hit the 50 per cent cap, activating the other 50 per cent of NIR would mean an additional $8 billion to the Government”.

Only 2% return on reserves?

Since the total sum of Singapore’s reserves is a secret, even if we assume that the above conservative estimate of $800 billion is correct, 50 per cent of the NIR assuming an average annualised return of say five per cent, would be about $20 billion.

Temasek 17, GIC 6, but NIR 2%?

This estimated NIR is not unrealistic, given that Temasek’s and GIC’s annualised returns have been reported at 17 (S$ terms) and around six per cent (US$ terms), respectively.

So, even if we spend a lot more on social spending, just the NIR alone may be sufficient, without even talking about the huge budget surpluses in the past, with about nine out of every 10 years in surplus.

Secrets of Singapore?

Of course, the fundamental questions as to why the percentage of the NIR used in a year, the sum of total reserves or the annualised return on the total reserves are a secret, remain.

Spend more, tax more?

As to “As Prime Minister Lee Hsien Loong said in his Aug 26 National Day Rally speech, “nothing falls from heaven”. So taxes will have to go up eventually to fund higher social expenditures – “not immediately” but within the next 20 years.

Annual health-care spending will double to $8 billion over the next five years. This year, the Government introduced the permanent GST Voucher, which pays out a combination of cash, conservancy rebates and Medisave top-ups, with more for older and lower-wage Singaporeans, to offset increases in the goods and services tax. This will cost the Government $680 million this year.

Also formalised in 2007 is the Workfare Income Supplement, which supplements low-wage workers’ income with cash and Central Provident
Fund (CPF) top-ups. This cost the Government $260 million last year.

NIR alone enough for extra spending?

Plans are also under way to spend $60 billion over the next 10 years to improve the transport system.”, even adding all of the above comes up to a total of only about $15 billion a year.

Don’t include current expenditure as additional spending?

However, on closer scrutiny, one would realise that the above amounts includes current expenditure that we are already spending. So, the additional expenditure is actually only about $10 billion a year.

As explained above, the NIR alone may be about double this additional
expenditure in a year.

Thus, the consistent rhetoric that if we spend more means we have to raise taxes, does not seem to hold water, not to mention that we have so far not spent significantly more relative to revenue in the last decade or so.

Accounting treatment of Budget surplus?

With regard to “But the Government also spent $8.58 billion of special transfers on programmes such as Workfare, and top-ups to various endowment funds, such as the Medical Endowment Fund”, this may be a fundamental issue with the way we determine our Budget surplus or deficit, because almost all countries would fund the social expenditure as an expense every year, instead of Singapore’s never-ending annual transfers to top-ups to the various endownment funds.

I understand that an arbitrary four per cent of an endownment fund a year, is then used to fund MediFund, Workfare, etc.

The result of this may be that the Budget surplus may be significantly under-reported, compared to other countries.

If we change to what other countries do, there may actually be a lot more money that we can spend on social spending, on top of the NIR explained above.

Leong Sze Hian

DKSG

27-02-13, 17:26

From the last few posts, I think we can conclude that property bad news is dwindling ...

DKSG

avo7007

27-02-13, 18:44

From the last few posts, I think we can conclude that property bad news is dwindling ...

DKSG

Well the forum is not actually overflowing with good property news too.

minority

28-02-13, 00:38

suddenly become anti government thread. Cannot talk the property down. talk the government down?

teddybear

28-02-13, 07:19

No, it is because don't need to talk down the property price any more as all the cooling measures already do the work. So they very free can talk down govt lor! Who ask govt go implement cooling measures to achieve their wish? Now back fire? :p

suddenly become anti government thread. Cannot talk the property down. talk the government down?

Rysk

28-02-13, 07:51

No, it is because don't need to talk down the property price any more as all the cooling measures already do the work. So they very free can talk down govt lor! Who ask govt go implement cooling measures to achieve their wish? Now back fire? :p

TWIST & TURN cum DIVERT ATTENTION EXPERT MR B (aka David Lim) & YOUNG KOK cum INEXPERIENCE SELETAR airbase (aka SMARIAN) should have blamed the gov for implementing the Pty Cooling Measures

Without CMs.. the uptrend may only takes 2-3 yrs before any price correction..
Now with CMs.. it has "prolonged" the uptrend to 7-10 yrs before it reach the "top".. before next price correction..

avo7007

28-02-13, 08:04

[COLOR="Red"]
Without CMs.. the uptrend may only takes 2-3 yrs before any price correction..
Now with CMs.. it has "prolonged" the uptrend to 7-10 yrs before it reach the "top".. before next price correction..

Is that your prediction? Prices will go up for the next 7-10 years?:scared-5:

Rysk

28-02-13, 08:25

Is that your prediction? Prices will go up for the next 7-10 years?:scared-5:
If I base on current uptrend started in 2010.. then maybe it will last till 2017-2020..

But thereafter when is major correction?.. nobody know

phantom_opera

28-02-13, 08:34

If I base on current uptrend started in 2010.. then maybe it will last till 2017-2020..

But thereafter when is major correction?.. nobody know

I agree with Rysk ... CMs serve to moderate the increase but also remove the weak hands in the market ... since last year median family income up 7.5% more than property price growth of 5% or inflationi rate of 4.5% ... after a few more years, affordability will improve so even more unlikely to have major correction

seletar

28-02-13, 10:26

http://www.stproperty.sg/articles-property/singapore-property-news/higher-taxes-on-high-end-and-investment-homes/a/106737

Higher taxes on high-end and investment homes

THE well-off who own luxury residences and investment homes will pay higher property taxes

The Straits Times (http://www.straitstimes.com/) - February 26, 2013
By: Esther Teo, Property Correspondent

http://www.stproperty.sg/articles-property/upload/article/200xNx106737__1362015743.jpg.pagespeed.ic.A53ghukb3C.jpg
Mr Sameer Aswani, 37, at his home at 9B Broadrick Road. He says it would be fair to pay more taxes if one could afford to buy a luxury home. -- ST PHOTO: DESMOND LIM

THE well-off who own luxury residences and investment homes will pay higher property taxes.

These will be introduced in phases over two years, starting Jan 1 next year.

Most owner-occupied homes, however, will enjoy a lower tax rate, said Deputy Prime Minister Tharman Shanmugaratnam yesterday when he presented the 2013 Budget.

"This is fair. The property tax is a wealth tax and is applied (to homes) irrespective of whether lived in, vacant or rented out. Those who live in the most expensive homes should pay more property tax than others," he said.

So, owner-occupiers of landed homes in central areas with an annual value of $150,000, for instance, will stump out 69 per cent more in property tax or an additional $5,120 a year. The annual value is the estimated annual rent the property may fetch.

But mindful that some retirees may be cash poor while living in homes of significant value, Mr Tharman said the new tax structure will ensure that most retirees pay less in property tax.

The new tax structure, which he tagged a "more progressive property tax", will swell government coffers by an additional $53 million when it takes effect fully on Jan 1, 2015.

But it will allow the Government to achieve greater social equity without hurting Singapore's economic competitiveness or reducing the incentives for enterprise, the minister added.

Besides new tax rates, the tax bands will also undergo changes.

The zero property tax band will be widened to the first $8,000 of a home's annual value, from $6,000. This will allow 950,000 owner-occupied homes to enjoy some tax savings, he said.

Homes with annual values of $12,000, like a five-room Housing Board flat, will save $80, which works out to 33 per cent of their current bill.

These savings will reduce property tax revenue by $44 million.

Besides the existing zero, 4 and 6 per cent tax rates, five higher rates will be introduced: ranging from 8 per cent to 16 per cent.

This means the top 1 per cent of owner-occupied homes - or 12,000 units - will pay more taxes, contributing an extra $25 million in revenue. But the increases will be small except for those at the very top.

For investment homes, which are not owner-occupied, new marginal property tax rates of 12 per cent to 20 per cent will be levied instead of the current flat 10 per cent rate across the board.

So while homes with annual values of $30,000 and below will continue paying a 10 per cent tax, investment homes with an annual value of more than $30,000 will pay higher taxes of between 12 per cent to 20 per cent.

These properties belong to the top one-third of all non-owner- occupied homes, or the top half of private homes, said Mr Tharman.

However, most investment suburban condominiums will see a small increase in property tax of about $100 to $300 per year with increases only "significant" for high-end properties.

These changes for investment homes will net the Government $72 million more in revenue.

Property tax rates for nonresidential properties will remain unchanged at flat 10 per cent. Tax refunds on vacant properties will be removed to provide consistency and equity in tax treatment, said Mr Tharman.

Real estate investor Sameer Aswani, 37, who owns investment homes in such upmarket condominiums as The Sail and Marina Bay Residences, said that from a businessman's point of view, the higher taxes are obviously not preferred. "But from a government's point of view, in the light of inflation, they have to take care of the 80 per cent who own HDB flats.

"If you have the money to buy high-end homes then maybe it's fair that you pay more taxes."

seletar

28-02-13, 10:30

http://www.straitstimes.com/premium_all
Straits Times
Published 28 Feb 2013

Squeeze on 70,000 mid-skilled foreigners

About one in two S Pass holders will be affected by new approval system

By Janice Heng

http://www.straitstimes.com/sites/straitstimes.com/files/imagecache/story-gallery-featured/spass2802e.jpg (http://www.straitstimes.com/sites/straitstimes.com/files/imagecache/story-gallery-featured/spass2802e.jpg)

ABOUT 70,000 foreign workers are at risk of not having their S Passes renewed when they expire.

This is because a new tiered system for approving S Passes is being introduced, which stipulates more experienced pass holders have to be employed at higher pay to continue working here.

The policy, said experts, is aimed at levelling the playing field for Singaporean workers, who may be losing out to foreign counterparts with the same qualifications and experience because the latter command lower pay.

The Ministry of Manpower (MOM) said about one in two S Pass holders will be affected by the new system.

There were 142,400 S Pass holders here as at the end of last year. S Pass holders are mid- skilled foreign workers who earn at least $2,000 a month. This will be raised to $2,200 from July.

The new tiered system will also kick in from the same date.

Older applicants who have better qualifications and more years of experience will now need to be employed at higher minimum pay in order to secure their S Passes.

Exactly how much higher will, however, not be known because MOM will not be giving details of these salary tiers.

The ministry said the tougher requirements are meant to "level the playing field for locals" and encourage employers to bring in "higher calibre S Pass holders".

Mr Zainudin Nordin, who chairs the Government Parliamentary Committee for Manpower, said it is about making firms pay the true value of S Pass holders, and "to be fair to our locals".

Employers told The Straits Times yesterday that the changes will force them to relook the pay of their mid-skilled foreign workers. Some prefer to hold on to experienced S Pass holders instead of finding local replacements, and would raise pay if need be.

Many such workers at construction firm HSL Constructor already earn $2,400 to $2,500, which managing director Lim Choo Leng hopes will be high enough for their passes to be safe.

But he is open to raising their pay, adding: "We are so short of people already. If they are good, we will try to keep them."

The story is similar in the food and beverage industry, where S Pass holders tend to be managers.

As many firms there hire experienced S Pass workers at low salaries, "a large jump" in pay might be needed just to keep them, said Fish & Co deputy managing director Hoo Hoe Keat.

Bringing in young foreigners on minimum S Pass pay is not preferred, as they will have to be trained from scratch, he added.

OCBC economist Selena Ling expects the "wage shock" to be significant, especially for industries where local replacements are hard to get.

Bosses said they hoped for more clarity on the salary tiers. Though the MOM is unlikely to set out explicit criteria, its online Self Assessment Tool will be updated in a few months, letting bosses assess the eligibility of workers under the new criteria.

Uncertainty, however, is no stranger to S Pass holders such as Ms Luningning Estabillo, 32.

The Filipino assistant restaurant manager at Fish & Co had her S Pass renewed last month, but some of her friends have not been as lucky. Some on three-year contracts could not get a renewal after the two-year term. "You're thinking you still have one more year to work, but then you have to go home, unprepared," she said.

[email protected]

avo7007

28-02-13, 10:36

This tiered S Pass system might affect HDB rental next year......

seletar

28-02-13, 10:47

http://www.stproperty.sg/articles-property/singapore-property-news/big-ticket-homes-to-feel-harsher-tax-heat/a/106705

Big-ticket homes to feel harsher tax heat

Non owner-occupied premises will see the highest rates in property taxes

The Business Times (http://www.businesstimes.com.sg/) - February 26, 2013
By: Mindy Tan

http://www.stproperty.sg/articles-property/upload/article/106705__1362017524.jpg
Up, up and away: With investment property taxed the most, investors may take their capital overseas or they may switch to commercial properties as tax rates for non-residential properties remains at 10%. - PHOTO: YEN MENG JIIN

OWNERS of high-end homes will face higher taxes, with investment properties bearing the brunt of the increase.

In a shift towards a more progressive tax structure, the tax band for owner-occupied homes was expanded from the current 0 per cent, 4 per cent, and 6 per cent tax rates, to encompass a a wider range of rates, ranging from 0 per cent to 16 per cent.

Under the new tiered rates, an owner-occupied landed property in the central area with an annual value (AV) - estimated annual rent - of $150,000 will see an increase in property tax of $5,120 per year.

Marginal property taxes for residential properties that are not owner-occupied and, therefore, owned for investment purposes, will be increased to 12 per cent to 20 per cent, from the current 10 per cent.

At the high end, a landed property in the central area with AV of $150,000 will see an increase in property tax of $9,000 a year (60 per cent increase). Suburban condominiums, on the other hand, will see a smaller increase of about $100 to $300 per year.

SLP International's head of research Nicholas Mak noted that while the percentage increase in taxes specific to luxury homes appears big, the quantum increase is "marginal" compared with the rental income received.

"Most high-end property buyers who can afford luxury properties will likely take the increase in property tax in their stride," he said.

Petra Blazkova, head of CBRE Research, Singapore and South-east Asia, said: "The graduated property tax on luxury properties... may put pressure on the holding cost of investment properties held by developers and investors. At an asset level we are likely to see yields compressing, even though only marginally."

Savills Singapore research head Alan Cheong too said he does not expect the new rates to impact rents significantly, given that rents are more dependent on demand and supply.

"However, taken in circumspect, it appears that with the higher marginal tax rates added on to personal taxes, owning a high-end real estate here for investment is becoming less of an attractive proposition than investing in one in a developed economy where taxes are higher. This will encourage more to take their capital overseas," said Mr Cheong.

Another possible effect is that property owners may switch to buying commercial properties given that property tax rates for non-residential properties remains unchanged at 10 per cent, said KPMG tax partner Leonard Ong.

"This will drive up the cost of commercial properties and overall business costs," said Mr Ong.

"We do not think this revision in tax rates will have any significant impact on the residential market. Some investors may choose mass market homes over the high-end segment as a result of the potential tax savings but we do not think there will be any general shift in demand," said Jones Lang LaSalle's head of research, South-east Asia, Chua Yang Liang.

The Budget is clearly about anchoring Singaporeans at the core, said Ho Mui Peng, tax partner with PricewaterhouseCoopers Services.

"The widening income disparity is managed somewhat with loading property tax increases, to the high-end property owners and increase in additional registration fees for high-end cars," she said.

Indeed, the more aggressive wealth tax means that the majority of owner-occupied residential properties will enjoy lower tax rates.

Specifically, some 950,000 owner-occupied properties will enjoy tax savings, with the widening of the 0 per cent property tax rate band from the first $6,000 of annual value, to $8,000. This means that homes with annual values of $12,000 (such as a five-room HDB flat) will experience tax savings of $80 (33 per cent of their current property tax bill).

All one- and two-bedroom HDB flats will continue to pay no property tax.

The revision in tax rates is a redistribution of tax liability from the cheaper asset class to the more expensive asset class, said Lee Liat Yeang, real estate partner at Rodyk & Davidson LLP.

"As long as the property is for owner-occupation, with AV below $55,000, you're not affected," he said. "With an AV of more than $50,000, your rental has to be pretty high, at least $7,000 per month... So it's a redistribution of tax liability and burden from the poorer class to the wealthy class."

The new tax structure for residential properties will be phased in over two years starting from Jan 1, 2014. The revised rates will take full effect from Jan 1, 2015.

Separately, the concession which provides tax refunds on vacant properties has been abolished, and will take effect from Jan 1, 2014.

Savills's Mr Cheong said: "This may have serious implications on the rental market in that it could force individuals or companies, to (dispose of) their vacant units onto the market at a time when rental budgets are constrained and the net number of employment passes issued have not been growing."

Added SLP's Mr Mak: "The impact is greater on owners who are holding on to properties for generating rental income, namely, real estate investment trusts. But the impact on the residential property market is minimal."

seletar

01-03-13, 10:05

http://leongszehian.com/?p=3175

What the Budget means for a lower-income Singaporean? (Part 2)

Posted on February 27th, 2013 under Articles (http://leongszehian.com/?cat=3), Budget (http://leongszehian.com/?cat=6), Jobs (http://leongszehian.com/?cat=13)

My name is Jane (not my real name). I am a 33 year old Singaporean worker with a basic pay of $500 a month. With overtime and allowances, I can earn as much as $1,900 because my normal work hours are 12 hours a day for six days in a week.

How many low-income workers?

I understand that there are about 400,000 local workers who only earn about $1,200 or less a month.

How many workers earning about $1,900 or less and are below age 35 are there, like me?

Not old enough to get Workfare?

I don’t qualify for Workfare because I am not 35 years old or older.

Not old enough to get Medisave top-up?

I don’t get the one-time Medisave top-up of $200 as I am not age 45 or older.

I don’t get the GSTV Medisave Special Payment, as I am not 65 years or older.

Don’t earn enough to pay income tax?

The Income Tax rebate does not apply to me as I don’t earn enough to pay income tax.

Labout costs increase?

My employer tells us that his labour costs will go up, because of the increase in the foreign workers’ levy.

His transport costs may also go up because of the minimum 40 per cent down-payment and reduction of the maximum car loan period to five years.

Because of the lower foreign worker dependency ratio, he may have to pay more than previously, to get more local workers.

From past experience, he thinks that permanent residents (PRs) may be more willing to work for a lower pay, relative to Singaporeans.

100% local workers can be PRs?

So, I guess I may still end up as one of the very few Singaporeans in my company, because 100 per cent of the local workers can be PRs.

With the population white paper saying that there may be as much as 30,000 new PRs granted per year in the future, perhaps this state of affairs may continue.

Wage Credit Scheme means pay increase?

Existing workers like me may not get a pay rise, if my emoloyer has to pay much more to get new workers.

With all the above problems, I think my employer may be hinting to us that there may be no increase in pay again this year.

Inflation may rise?

With all these talk about rising costs, will inflation rise and make my life even harder?

I also had no pay increase last year because my company lost a contract to a competitor company which tendered a lower bid, as i was told that they were paying their workers even lower wages than our company.

Foreign worker’s levy works?

In the past, whenever the foreign workers’ levey was raised, some employers simply managed to get new foreign workers from countries who were willing to accept lower wages. This, in turn, caused Singaporeans’ wages to be depressed too.

As the recent “bus drivers’ strike” incident has shown – the foreign drivers were still about 25 per cent cheaper than Singaporean drivers, even after accounting for their foreign workers’ levy, accomodation and transports costs. (“A statistical analysis of the SMRT strike? – Balancing Growth, Foreigners & Meritocracy (http://leongszehian.com/?p=2136)“, Dec 4)

So, I doubt as to whether my employer will increase my pay by much, due to the 40 per cent subsidy under the Wage Credit Scheme.

Dependency or target ratio?

I don’t know why they call it a dependency ratio, as I see so many companies treat it like a dependency target, to max out the non-Singaporeans that they can employ. Everywhere, I see jobs like administration, reception, IT, etc, that i believe Singaporeans are willing to work if the pay is decent or they don’t have to work 12-hour days forever like me.

Still need more time to study?

The budget statement said that they still need more time to study what other countries do – allow foreigners only when employers can show that they have tried and are unable to get citizens to work – this problem has been going on for years – so, how much more time do they need to study some more?

How much more revenue?

The budget statement was very detailed about how much it would cost the Government to give out so many benefits to businesses and individuals, but I don’t seem to be able to find any mention as to how much additional and total revenue are estimated to be collected, due to the increase in foreign workers’ levies.

It may be akin to telling you how much we will spend to help you, without telling you how much more money will be made?

So, the budget statement’s rhetoric that it is for a more inclusive society, may mean very little to me, and others like me.

(Note: Jane is a fictional character)

Leong Sze Hian

seletar

01-03-13, 10:15

http://singaporearmchaircritic.wordpress.com/2013/02/27/budget-2013-no-respite-from-rising-medical-costs/#more-2240

Singapore Armchair Critic (http://singaporearmchaircritic.wordpress.com/)
Published: February 27, 2013 (http://singaporearmchaircritic.wordpress.com/2013/02/27/)

No Respite from Rising Medical Costs

by singaporearmchaircritic

Before Budget 2013 was announced, many of us would have learned about the spike in our health insurance premiums either through the media or the letter from CPF.

Come March, Medishield premiums (http://mycpf.cpf.gov.sg/CPF/my-cpf/Healthcare/General_Info_MSH-Scheme.htm) and integrated shield plan premiums (http://ask-us.cpf.gov.sg/efa/answer/index.htm?sourceType=3&search_text=IP) will see a hefty increase (http://www.btinvest.com.sg/insurance/health-insurance/health-insurance-cost-to-rise-from-march/). Because the Medisave withdrawal limit for each premium is up to $800 per insured person per policy year, any sum above $800 would have to be paid out-of-pocket.

Sigh.

If you are a Singaporean, you would be familiar with the saying that one can die but cannot fall sick in Singapore. Some of us might have said it in jest and our foreign friends might think it was an exaggeration.

Yet increasingly, high medical costs in Singapore is making this more of a painful reality than a joke. According to the Mindshare survey 2012 (http://www.tremeritus.com/2012/10/07/the-real-national-conversation/), 72% of Singaporeans believe that “we cannot afford to get sick these days due to high medical costs.”

Has the Budget 2013 addressed this very real concern of Singaporeans?

In DPM’s budget announcement, he said the government would look into lowering Singaporeans’ out-of-pocket health spending (report (http://www.todayonline.com/singapore/govt-take-larger-share-medical-costs)).

Singaporeans’ out-of-pocket medical spending is the highest among the East Asian developed economies. Fifty-four percent of our total health expenditure is paid out-of-pocket, compared to around 30-35% in Hong Kong, Taiwan and South Korea. Citizens of the Nordics pay less than 20% of their medical expenses out-of-pocket.

Our public health expenditure as a percentage of GDP is also the lowest among these economies (see Figures below).
(http://singaporearmchaircritic.files.wordpress.com/2013/02/chart1_new.jpg)http://singaporearmchaircritic.files.wordpress.com/2013/02/chart1_new.jpg?w=1050&h=780(Data sources: WHO Data Observatory (http://www.who.int/gho/health_financing/out_pocket_expenditure/en/index.html), Taiwan (http://www.doh.gov.tw/EN2006/DM/DM2.aspx?now_fod_list_no=12752&class_no=390&level_no=2) & Hong Kong (http://www.fhb.gov.hk/statistics/download/dha/en/dha_summary_report_0910.pdf)). Note that Medisave is not counted as out-of-pocket spending in the Singapore figure.

(http://singaporearmchaircritic.files.wordpress.com/2013/02/chart2_new.jpg)http://singaporearmchaircritic.files.wordpress.com/2013/02/chart2_new.jpg?w=1050&h=677(Data sources: World Bank (http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS) & others (http://www.fhb.gov.hk/statistics/download/dha/en/tf5_0910.pdf)). Note that private health expenditure in this chart includes out-of-pocket expenditure borne by individuals.

Although DPM said that the government will “study” how it may broaden the usage of Medisave and Medifund, the Budget statement (http://app.singaporebudget.gov.sg/budget_2013/default.aspx) provides no further detail.

Instead, the key initiative drawn up in the Budget is to channel more money to three funds: the Medifund (http://www.moh.gov.sg/content/moh_web/home/costs_and_financing/schemes_subsidies/Medifund.html), the Eldercare Fund (http://www.moh.gov.sg/content/moh_web/home/pressRoom/pressRoomItemRelease/2000/establishment_of_eldercare_fund.html), and the Senior’s Mobility and Enabling Fund (http://www.aic.sg/silverpages/resources/page.aspx?id=552). The government top-ups amount to $1 billion, $250 million and $40 million respectively.

Before you applaud these seemingly generous injections of capital, do know that only the interest income from these funds may be used.

Elderfund subsidized the operating costs of nursing homes run by voluntary welfare organizations; Medifund is only for those who cannot afford to pay the charges at restructured hospitals even with Medisave and Medishield.

To be eligible for the Senior Mobility and Enabling Fund, you must be a senior citizen with a per capita household monthly income of $1,500 and below, or live in a residence with an annual value (estimated rental value) of not more than $13,000 if your household has no income.

Given the stringent eligibility conditions, how may these initiatives benefit most Singaporeans and reduce the medical expenses we pay out-of-pocket?

Singaporeans have every reason to be skeptical.

Despite repeated calls by experts (http://www.todayonline.com/singapore/experts-call-reform-healthcare-financing-system) and ordinary Singaporeans (http://www.todayonline.com/voices/reform-use-medisave-our-senior-citizens) to reform the use of Medisave (http://www.todayonline.com/voices/allow-use-medisave-elderlys-health-needs), the government is slow and reluctant to lift the restrictions, leaving us to fork out what little cash we have to pay for our medical expenses.

As recently as in late January, the Health Minister had dismissed Lee Li Lian’s suggestion to lift Medisave restrictions for senior citizens above 75 years old, saying that “elderly Singaporeans may face greater financial difficulties down the road if they are allowed to use up their Medisave fund without restrictions” (source (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1249764/1/.html)).

This sort of preposterous argument, coming from the Health Minister himself, only goes to confirm our suspicion that the government couldn’t care less about our wellbeing.

Fine then. Many Singaporeans also couldn’t care less about the government’s promise (http://www.todayonline.com/singapore/govt-take-larger-share-medical-costs) to take up a larger portion of medical costs.

Just give us the right to use our own Medisave money for essential healthcare needs.

As this reader asks in a letter to Today (http://www.todayonline.com/voices/reform-use-medisave-our-senior-citizens):
“What is the purpose of having so much in Medisave while having to pay for high medical expenses out of pocket? What is the purpose of getting citizens to top up their parents’ Medisave accounts?”

seletar

01-03-13, 10:34

http://www.todayonline.com/business/singapore-avoids-stimulus-tharman-acts-curb-bubble-risk

TODAYonline
business - 01 Mar 2013

Singapore avoids stimulus as Tharman acts to curb bubble risk

http://www.todayonline.com/sites/default/files/styles/photo_gallery_image/public/14136966_0.JPG
Arrival of DPM & Minister for Finance Tharman Shanmugaratnam for Budget Day, 25 Feb 2013...Photo: Ernest Chua.

SINGAPORE — Finance Minister Tharman Shanmugaratnam said there’s no need for monetary stimulus in a country with full employment, adding that unorthodox tools must be used to prevent asset bubbles.

“We don’t have an output gap, and evidence of that is in an extremely tight labour market,” Mr Tharman, 56, said in a Bloomberg Television interview yesterday.

“In that context basically, you can’t have an easy monetary policy, which in our case is an exchange-rate policy.”

The minister, who also discussed so-called currency wars and Singapore’s efforts to limit the influx of foreign workers in an hour-long interview, said property prices need to stabilise further even as measures implemented earlier this year begin to take effect.

A search for higher-yielding assets amid monetary easing in developed economies has fuelled record property prices in Singapore, sparking inflationary pressures and social tensions.

The central bank tightened monetary policy in 2012 by allowing faster currency gains even as the economy grew the least in three years.

“We can’t just rely on exchange-rate policy and monetary policy to prevent bubbles from being formed,” said Mr Tharman, who is also deputy prime minister and chairman of the central bank. “You’ve got to find ways of throwing sand in the wheels, you’ve got to add some friction in the process.”

PROPERTY CURBS, ENTRENCHED INFLATION

Singapore has imposed steps to cool the housing market since 2009, with the last round in January including an increase of as much as 7 percentage points in stamp duties. The finance minister said he is “pretty confident” that the government will get a handle on the situation.

“We’re still in a wrong part of the cycle,” and there is still “some ways to go” before prices are at an acceptable level, he said.

“It’ll happen through a combination of income improvement, as well as prices certainly not going up further, but some correction in prices will not be out of order.”

While the government will never be able to tame the “sentiment-driven” market, it has to limit gains because of the social impact when people can’t afford to buy homes, Mr Tharman said.

“We can prevent a real bubble from being formed which then eventually crashes, and that’s our objective,” said the minister, who obtained his master’s in economics from the University of Cambridge and holds a master’s in public administration from Harvard University in Cambridge, Massachusetts.

“We can’t use the full arsenal in one shot,” he said, referring to seven rounds of property curbs since 2009.

The city forecasts growth of 1 per cent to 3 per cent in 2013. Expansion “could come out at the lower end” of the range, Mr Tharman said in the interview at the Ministry of Finance.

Singapore’s jobless rate fell to a five-year low of 1.8 per cent last quarter as companies hired more local workers after the government tightened the inflow of foreign labour.

“There is no need to ease policy at the moment,” said Mr Vishnu Varathan, an economist at Mizuho Corporate Bank Ltd in Singapore. “They don’t want entrenched inflation expectations especially as the labour market has not loosened.”

Singapore sets monetary policy via the nation’s dollar, guiding the exchange rate against a basket of currencies within an undisclosed band. The Monetary Authority of Singapore adjusts the pace of appreciation or depreciation by changing the slope, width or centre of the band.

CURRENCY WAR

Singapore’s currency has depreciated 1.2 per cent against the US dollar this year, after reaching an all-time high on July 27, 2011, and climbing 6.1 per cent in 2012.

Singapore has remained vulnerable to fluctuations in overseas demand for manufactured goods. The government has boosted the financial services and tourism industries to become less reliant on exports.

“The biggest issue is still what happens in the most developed economies,” Mr Tharman said, referring to potential threats to Singapore’s growth.

“As a highly open economy, as an economy that lives by being global and regional, that matters to us.”

Mr Tharman, who is also the chairman of the International Monetary Fund’s steering committee, said policy makers in developed economies such as the US, Europe and Japan “have their monetary settings about right.”

The risk of a currency war has surfaced as monetary easing from Japan to the US spurs demand for higher-yielding assets and boosts inflows into emerging markets. Russia said in January that policies which end up weakening currencies may lead to reciprocal action as nations try to protect their export industries.

While talk of currency wars “has run further than the reality,” there is now a good understanding among “major players” about what is appropriate, Mr Tharman said. “There might have been a little bit of clumsiness in public statements.”

Mr Tharman unveiled tighter curbs on foreign labour for a fourth consecutive year when he presented the annual budget on Feb 25. In a white paper released in January, the government said total workforce growth will ease to 1 per cent to 2 per cent annually through 2020, compared with an average rate of 3.3 per cent per annum in the last three decades.

LABOUR FORCE

“The foreign workforce can’t keep growing faster than the local workforce, not indefinitely,” Mr Tharman said. “That’s why our key priority now, our most important economic and social strategy is that of raising productivity to a new level.”

The government has stepped up efforts since 2010 to restructure the way companies operate and make productivity a cornerstone of the economic blueprint for this decade. Officials blamed some industries’ use of cheaper, low-skilled foreign labour as a reason for low productivity in the last decade.

“If you don’t raise productivity, it’s hard to raise incomes,” Mr Tharman said. “And if you can’t raise incomes for the average person, for the median household and for those at the lower end of the wage ladder, your society frays.” BLOOMBERG

seletar

01-03-13, 10:41

http://www.todayonline.com/business/property/investors-hardest-hit-new-tax-rules

TODAYonline
Property - 01 Mar 2013

Investors hardest hit by new tax rules
http://www.todayonline.com/sites/default/files/styles/photo_gallery_image/public/14172119_0.JPG
Under the new property tax measures, investors will be hard-pressed to sell their units quickly or lease them out. TODAY file photo

By COLIN TAN (http://www.todayonline.com/authors/colin-tan)

Much has been made of the impact of the new property tax measures on high-end developers, but I would say that the hardest hit would be the investors.

Under the revised tax rules announced in Budget 2013, investment property owners will face higher tax rates on the assessed annual values (AVs) of the properties from next year. The higher rates will apply even if the units are left vacant. Previously, developers and investors could apply for tax rebates for unleased or vacant units.

Under a progressive tax rate structure, high-end properties with their higher assessed AVs would be the hardest hit.

Developers with unsold units in completed luxury projects will face significantly higher holding costs. But at least they have a choice. They can sell their problem away, albeit with vastly reduced profit margins. In any case, they have enjoyed the “good years” since 2010.

Not so for investors, who will be hard-pressed to sell their units quickly or lease them out.

Some investors have chosen to keep their newly-completed investment properties vacant while they seek a good price in the market. They do so in order to retain the price premium that new units usually command over previously-occupied ones.

After many rounds of cooling measures, it is getting increasingly difficult to find home buyers, let alone buyers of completed units. Indeed, much of the buying action has been focused on new launches.

In addition, investors who are thinking of selling properties bought within the past four years have to factor in the sellers’ stamp duty, whereas developers face no such hurdles. If investors cannot sell with a reasonable profit, they will have to lease out their units.

Official statistics show that at the end of last year, there were a total of 14,869 vacant private housing units, comprising 2,285 landed and 12,584 non-landed homes.

If the owners of all these units now choose to lease them out, what do you think would be the impact on the rental market? Well, they have 10 more months to decide.

And, lest we forget, 2013 and 2014 are the two years where the private housing market is expected to see significantly higher completions, that is, more supply at record numbers is on its way.

This is the “perfect storm” that some property analysts envisaged a couple of years ago that could hit the private housing market. Although interest rates have remained low, the new tax measures have an effect akin to a rise in rates as they both raise holding costs, and even more so for previously unoccupied units.

The still uncertain factor in the overall equation is the growth in the resident population size. The growth in new arrivals may be sufficient to mitigate the effects of the higher supply. However, if the Government has not been clamping down hard enough on new foreign arrivals, it faces even stronger pressure to do so now than it did two years ago.

For now, rentals may continue to be stable as investors ponder which course of action to take. But if rentals do fall, there will be less justification for home prices to remain high. Prices may eventually follow suit, but when this will occur is open to debate.

The region and the world are still awash with liquidity. Hot money will continue to flow this way, with Singapore being one of the few economies still holding an AAA rating.

On the increase in tax rates on owner-occupied properties, I am hard-pressed to understand the rationale for such a move. Because they are not linked to income, these taxes can be regressive in nature. Retirees are one group that is most vulnerable.

Why not keep a flat rate and keep the tax system easy to execute? It will not make a significant difference to the total tax revenue raised anyway.

If it is supposed to be a wealth tax, there are many more ways to tax the wealthy. For most single-property owners, that home is a result of hard work and years of savings. Do we need to penalise such efforts?

In any case, do most of these owners have a choice in avoiding such taxes? The decision to live in a particular location may have been made many years ago. Who could have guessed that an MRT station would open nearby?

If they choose to uproot now, they will lose their social and community ties. Will this lead to enclaves for those with higher incomes and others for those with lower incomes?

Finally, does the direction in taxes for owner-occupied properties mean that a lower-income household can never aspire to live in a convenient or central location? This is because these taxes can potentially drive them away — if not now, then in the not-too-distant future.

Colin Tan is Head of Research and Consultancy at Chesterton Suntec International.

seletar

01-03-13, 11:18

http://www.todayonline.com/business/property/high-end-housing-worst-hit-curbs

TODAYonline
Property - 01 Mar 2013

High-end housing worst hit by curbs

SINGAPORE — The high-end housing segment will be most affected by the recent property curbs, Mr Kwek Leng Beng, Executive Chairman of City Developments (CDL), said yesterday, adding that “some correction” would be needed for the overall market.

Responding to a question on Budget 2013 and measures to cool the property market at CDL’s results briefing, Mr Kwek said: “The current economic crisis in Europe and global uncertainty create challenges to many countries. Some countries are addressing the widening income and wealth gaps.

“Singapore has looked into this issue and has moved forward to restructure its economy, making it sustainable in the longer term. The strategies mapped out by the Government will cause some pain before gain and, with its proven record, the private sector must come forward to support this move.”

The property cooling measures unveiled on Jan 11 include additional buyer’s stamp duty (ABSD), tighter loan-to-value limits and higher minimum cash down payments.

CDL reported its fourth-quarter net profit rose 52.8 per cent from the corresponding period a year ago, mainly due to robust sales and one-off gains. Net profit for the three months ended Dec 31 was S$249.3 million as revenue grew 22.8 per cent to S$886.4 million.

The one-off gains included profit on the sale of some property and an insurance settlement its Millennium & Copthorne unit received for a hotel in New Zealand that was closed after the February 2011 earthquake.

Net profit for last year fell 15.1 per cent to S$678.3 million, as revenue rose 2.2 per cent to S$3.35 billion.

CDL announced a special dividend of 5 cents per share, taking the total dividend for 2012 to 13 cents.

WITH AGENCIES

seletar

02-03-13, 10:46

http://www.todayonline.com/business/some-way-go-property-prices-are-acceptable-tharman

TODAYonline
Business - 02 Mar 2013

Some way to go before property prices are acceptable: Tharman

http://www.todayonline.com/sites/default/files/styles/photo_gallery_image/public/14187167_0.JPG
Analysts cautioned that it would take some time before it becomes clear how prices and demand have been affected by the recent cooling property measures. TODAY file photo

SINGAPORE — There are still “some ways to go” before property prices are at an acceptable level, Deputy Prime Minister Tharman Shanmugaratnam said in an interview with Bloomberg Television on Thursday.

“We’re still in a wrong part of the cycle,” he said, adding that bringing prices to an acceptable level will happen “through a combination of income improvement, as well as prices certainly not going up further, but some correction in prices will not be out of order”.

Mr Tharman’s comments come after the Government introduced a further round of property cooling measures in January to take more heat off the market, which has seen prices keep climbing upwards.

The impact of the measures has yet to be seen, with market watchers cautioning that it might not be until this month or April before it is clear how prices and demand have been affected.

Meanwhile, property analysts were divided on whether the Government might be inclined to introduce more cooling measures if prices continue to rise.

Noting that Mr Tharman said in his Budget speech that no effort will be spared to resolve the housing issue, Mr Steve Melhuish, Co-Founder and Group Chief Executive Officer of PropertyGuru, said: “The Government certainly won’t hesitate to intervene if the property market faces threats of a bubble similar to that of Hong Kong and China and there is a chance we could see more curbs if the market does not see an appreciable price correction.”

However, Mr Alan Cheong, head of research at Savills Singapore, said it is unlikely that the Government will add any further cooling measures in the foreseeable future, although Mr Tharman’s comments in the interview may act as a partial brake on the market as they indicate the Government is keeping a close eye on the situation.

Mr Colin Tan, Head of Research and Consultancy at Chesterton Suntec International, added that it appears that Mr Tharman’s chief concern is to make homes more affordable to Singaporeans.

“He is quite happy for this to happen via a rise in general incomes levels or a correction in property prices,” he said.

“I take this to mean that the cooling measures — both in the past and probably in the future — are not crafted simply to force a price correction but more to tame market sentiment.”

In the interview, Mr Tharman also said that the Government has to limit property price gains because of the social impact when people cannot afford to buy homes.

He added that “we can prevent a real bubble from being formed which then eventually crashes, and that’s our objective”.

seletar

02-03-13, 10:50

http://www.todayonline.com/business/euro-area-manufacturing-activity-shrinks-19th-month

TODAYonline
Business - 01 Mar 2013

Euro-area manufacturing activity shrinks for 19th Month

BRUSSELS - Euro-area manufacturing activity contracted for a 19th straight month in February as the currency bloc struggled to emerge from a recession, Bloomberg News reported on Friday.

A gauge of manufacturing in the 17-nation euro area was revised to 47.9, London-based Markit Economics said. That’s slightly above an initial estimate of 47.8 published on Feb 21. A reading below 50 indicates contraction.

The euro-area recession deepened in the fourth quarter as the economy recorded its worst performance in four years with a contraction of 0.6 per cent. Gross domestic product will decline again in the first three months before returning to growth in the second quarter, according to the median of 21 economists’ estimates in a Bloomberg News survey.

seletar

02-03-13, 10:52

http://www.todayonline.com/business/inflation-falls-jobless-rate-hits-record-high-euro-zone

TODAYonline
Business - 01 Mar 2013

Inflation falls, jobless rate hits record high in euro zone

BRUSSELS - Inflation fell in the euro zone in February and joblessness rose to an all-time high, highlighting the impact of the bloc’s debt crisis.

Annual inflation in the 17 countries sharing the euro fell to 1.8 per cent in February from 2 per cent in January, the EU’s statistics office Eurostat said on Friday, within the European Central Bank’s (ECB) target of below but close to 2 per cent.

The unemployment rate rose to 11.9 per cent in January from 11.8 per cent in December, with another 201,000 people out of work, Eurostat said separately.

The sombre economic situation will likely weigh on the ECB’s Governing Council when it meets on March 7. While only a minority of economists see any early move to cut the bank’s benchmark rate below the current 0.75 per cent, consumer prices are no longer an issue.

“Inflation is just not a concern, it is not a reason why policymakers would hesitate to cut interest rates,” said Ms Sarah Hewin, head of European research at Standard Chartered Bank.

“They could move as early as next week, but there’s an element of the ECB wanting to keep its powder dry as we enter an uncertain political situation with Italy and the Cypriot debt question to be resolved.”

Economists polled by Reuters expected inflation to fall to 1.9 per cent. The reading compared to 2 per cent in January.

While the slowing pace of price increases may make it easier for Europeans to buy food and clothing, it is little comfort to the record 19 million people unemployed in the euro zone.

Three years of crisis have driven major euro zone economies, such as Italy and Spain, into a grinding recession, with businesses unable to obtain the financing they need to expand and citizens unable to earn enough to spend with confidence. - REUTERS

seletar

02-03-13, 11:07

http://sbr.com.sg/residential-property/news/heres-how-budget-2013s-new-property-taxes-will-hurt-investment-demand

Singapore Business Review
RESIDENTIAL PROPERTY | Staff Reporter, Singapore
Published: 02 Mar 2013

Here's how Budget 2013's new property taxes will hurt investment demand

Private properties to suffer the most.

Here's the full impact analysis from Knight Frank:

Rationale of the New Property Tax Policies

According to Knigh Frank, From the government’s viewpoint, a progressive property tax structure allows greater social equity without hurting economic competitiveness or reducing the incentives for enterprises. With an increase in the progressiveness of the property tax system and higher property tax rates for high-end residential properties and especially investment properties, the government is aiming to ensure social fairness. The property tax is a wealth tax and is applied irrespective of whether the property is lived in, vacant or rented out. Those who live in the most expensive homes should pay more property taxes than others.

Residential property prices have continued to rise over the last 2 years, with the URA All Residential Price Index posting a 9 per cent increase and the HDB Resale Price Index at 18 per cent as at 4Q 2012. Many middle and lower income groups are finding harder to secure an affordable home and this is becoming a bugbear for policy makers. The new property tax policies could hopefully control property prices by moderating property investment demand.

With the highest ABSD applicable for foreign homebuyers, the previous cooling measures have reduced foreign demand for properties in Singapore where the proportion of non-Permanent Resident buyers fell from 11.9 per cent in 2010 and 17.6 per cent in 2011 to only 6.3 per cent in 2012.

However, the residential property market remained buoyant with a continuous surge in developers’ sales volume in January 2013. The new tax policies target property investment demand in the long run as taxes are payable annually

Potential Impact on Property Market

This policy is akin to 'another shot' on top of the existing cooling measures, which could discourage purchase of private properties for investment purposes, while having a marginal impact on owner-occupied residential properties.

Under the new policies, property tax rate for non-owner-occupied residential properties and vacant residential properties are more than twice the rate for owner-occupied properties, given similar Annual Value (AV). For example, a property with AV of $60,000 will be subject to property tax rates of up to 5 or 6 per cent if it is occupied by the owners; or up to 13 or 14 per cent if it is leased out or vacant. In another case, a property with AV of $70,000 will be subject to property tax rates of up to 6 per cent if it is occupied by the owners and up to 15 per cent or 16 per cent if it is leased out or vacant.

In terms of property tax payable, investment properties will also see higher increase compared to owner-occupied properties. For example, a $12,000-AV property saw a decline of 33 per cent in payable tax quantum if it is owner-occupied but saw no change in payable tax quantum if it is leased out or left vacant. A property of $100,000 AV will experience 23 per cent tax increase under owner-occupation status and 40 per cent tax increase under investment status.

Holding costs for residential homes as an investment asset become higher with this new property tax regime. While ABSD is a one-off initial cost, property tax is an annual expenditure, which adds a fair bit of costs to highend home owners and investors.

The removal of property tax refund concession for vacant properties further discourages speculators and short-term investors who look for capital gains rather than long-term investment returns. These buyers can no longer claim tax refund by leaving their units vacant, and letting out is another way to mitigate holding cost with a rental income stream. With lease contracts varying from 1-year to 3-year term and coupled with initial fitting out costs, it might be more worthwhile for investors to hold their units over a longer period to plough back costs than flipping vacant units for quick capital gains.

seletar

04-03-13, 10:44

http://www.todayonline.com/singapore/sars-virus-has-low-chance-spreading-spore-moh

TODAYonline
Singapore - 04 Mar 2013

SARS-like virus has low chance of spreading in S’pore: MOH

http://www.todayonline.com/sites/default/files/styles/photo_gallery_image/public/14206807_0.JPG
This undated image released by the British Health Protection Agency shows an electron microscope image of a coronavirus, part of a family of viruses that cause ailments including the common cold and SARS, which was first identified last year in the Middle East. Photo: AP

By Ng Lian Cheong (http://www.todayonline.com/authors/ng-lian-cheong) , Olivia Siong (http://www.todayonline.com/authors/olivia-siong)

SINGAPORE — The Health Ministry has said that chances of the new SARS-like virus spreading in Singapore are low, especially since severe secondary infections among the close contacts of the cases is uncommon.

13 cases involving the novel coronavirus have been reported in the Middle East and United Kingdom since April last year.

The Health Ministry said it has not received any reports of such cases here.

It is also keeping close watch on the developments of the new virus, and working with the World Health Organisation and the international community to remain vigilant for the emergence of new cases of novel coronavirus infection.

All hospitals and clinics have been told to immediately report any suspicious cases.

This comes as Singapore remembers the SARS outbreak, which claimed 33 lives 10 years ago.

The memories remain vivid for healthcare workers who were on the front-line then.

Ms Vasanthi Palanivelu, patient service associate at Tan Tock Seng Hospital, said: “During the SARS period, 13 of us got infected and I was one of them. One of my nursing officers has passed on. We were sad for her but we took our courage to come back together. We never had any intention of running away from the work, as we’re really proud of being healthcare workers.”

Having been through the SARS outbreak in 2003 and the H1N1 pandemic in 2009, the Health Ministry said it has a whole-of-government national crisis management system in place with plans and capabilities to deal with a pandemic if one should occur. CHANNEL NEWSASIA

seletar

04-03-13, 10:53

http://sammyboy.com/showthread.php?146741-New-property-cooling-measure-will-be-announce-this-week-(Rumour)
Posted 04 Mar 2013

New property cooling measure will be announce this week. (Rumour)

Expected New MAS measure this coming Friday. It maybe touching on the MSR.

MAS is considering reviewing the Mortgage Servicing Ratio (MSR) for private property to be like HDB ruling. E.g. 30% mortgage servicing ratio.

Which could mean private property buyer can only use 30% of borrower's income to service the mortgage loan. E.g. If buyer income is $10k, max servicing loan monthly installment is $3k. HDB already implement this rule on 11 Jan 2013.

seletar

04-03-13, 12:19

http://theeconomiccollapseblog.com/archives/consumer-spending-drought-16-signs-that-the-middle-class-is-running-out-of-money

Consumer Spending Drought: 16 Signs That The Middle Class Is Running Out Of Money

By Michael, on February 28th, 2013

http://theeconomiccollapseblog.com/wp-content/uploads/2013/02/Drought-Photo-by-Bert-Kaufmann-300x199.jpg (http://thetruthwins.com/)

Is "discretionary income" rapidly becoming a thing of the past for most American families? Right now, there are a lot of signs that we are on the verge of a nightmarish consumer spending drought. Incomes are down (http://money.cnn.com/2013/03/01/news/economy/income-spending-saving/), taxes are up, many large retail chains are deeply struggling because of the lack of customers, and at this point nearly a quarter of all Americans have more credit card debt than money in the bank. Considering the fact that consumer spending is such a large percentage of the U.S. economy, that is very bad news. How will we ever have a sustained economic recovery if consumers don't have much money to spend? Well, the truth is that we aren't ever going to have a sustained economic recovery. In fact, this debt-fueled bubble of false hope (http://theeconomiccollapseblog.com/archives/all-of-this-whining-and-crying-about-the-sequester-shows-why-america-is-doomed) that we are experiencing right now is as good as things are going to get. Things are going to go downhill from here, and if you think that consumer spending is bad now, just wait until you see what happens over the next several years.

Even though the Dow is surging toward a record high right now, everyone knows that things are not good for the middle class. A recent quote from CPA Howard Dvorkin (http://www.cnbc.com/id/100490282) kind of summarizes our current state of affairs very nicely...
"The fact of the matter is that America is broke — whether it's mortgages, student loans or credit cards, we are broke. The old rule of thumb is that people should have six months' of savings," Dvorkin says."If you talk to people, most don't have two pennies."

These days most Americans are living from paycheck to paycheck, and thanks to rising prices and rising taxes, those paychecks are getting squeezed tighter and tighter. Many families have had to cut back on unnecessary expenses, and some families no longer have any discretionary income at all.
The following are 16 signs that the middle class is rapidly running out of money...

#1 According to one brand new survey (http://www.cnbc.com/id/100490282), 24 percent of all Americans have more credit card debt than money in the bank.

#2 J.C. Penney was once an unstoppable retail powerhouse, but now J.C. Penney has just posted its lowest annual retail sales in more than 20 years (http://www.bloomberg.com/news/2013-02-27/j-c-penney-posts-wider-fourth-quarter-net-loss.html)...
J.C. Penney Co. (JCP) slid the most in more than three decades after the department-store chain lost $4.3 billion in sales in the first year of Chief Executive Officer Ron Johnson’s turnaround plan.

The shares fell 18 percent to $17.40 at 11:28 a.m. in New York after earlier declining 22 percent, the biggest intraday drop since at least 1980, according to data compiled by Bloomberg. J.C. Penney yesterday said its net loss in the quarter ended Feb. 2 widened to $552 million from $87 million a year earlier. The Plano, Texas-based retailer’s annual revenue slid 25 percent to $13 billion, the lowest since at least 1987.

How much worse can things get? At this point the decline has become so steep for J.C. Penney that Jim Cramer of CNBC is declaring that they are in "a true tailspin (http://www.cnbc.com/id/100506559)".

#3 In the United States today, a new car has become out of reach for most middle class Americans according to the 2013 Car Affordability Study (http://finance.yahoo.com/news/cars-increasingly-reach-many-americans-145957880.html)...
Looking to buy a new car, truck or crossover? You may find it more difficult to stretch the household budget than you expected, according to a new study that finds median-income families in only one major U.S. city actually can afford the typical new vehicle.

The typical new vehicle is now more expensive than ever, averaging $30,500 in 2012, according to TrueCar.com data, and heading up again as makers curb the incentives that helped make their products more affordable during the recession when they were desperate for sales. According to the 2013 Car Affordability Study by Interest.com, only in Washington could the typical household swing the payments, the median income there running $86,680 a year.

#4 The founder of Subway Restaurants, Fred Deluca, says that the recent tax increases are having a noticeable impact (http://www.cnbc.com/id/100501700) on his business...
"The payroll tax is affecting sales. It's causing sales declines," he said, estimating a decline of about 2 percentage points off sales at his restaurants. "There are a lot of pressures on consumers," Deluca said, adding "I think this is on the permanent side, but I think business will adjust to it."

#5 Many other large restaurant chains are also struggling (http://www.cnbc.com/id/100502661) in this tough economic environment...
Darden Restaurants, which owns the casual dining chains Oliver Garden, LongHorn Steakhouse and Red Lobster, said blended same-store sales at its three eateries would be 4.5 percent lower during its fiscal third quarter.

Clarence Otis, Darden's chairman and chief executive, said that "while results midway through the third quarter were encouraging, there were difficult macro-economic headwinds during the last month of the quarter."

"Two of the most prominent were increased payroll taxes and rising gasoline prices, which together put meaningful pressure on the discretionary purchasing power of our guests," he added.

#6 The CFO of Family Dollar recently admitted to CNBC that this is a "challenging time (http://www.cnbc.com/id/100502661)" because of reduced consumer spending...
At Family Dollar where the average customer makes less than $40,000 a year, the combination of a two-percent hike in the payroll tax, rising gas prices and delayed tax refunds has created a "challenging time and an uncertain time for the consumer right now," said Mary Winston, the company's chief financial officer.

"In our case, anything that takes money out of our customer's wallet gives them less money to spend in our stores," she told CNBC. "So I think all of those things create nervousness for the consumer, and I think there are sometimes political dynamics going on that they might not even fully understand the details, but they know it's not good."

#7 Even Wal-Mart is really struggling right now. According to a recent Bloomberg article (http://www.bloomberg.com/news/2013-02-27/wal-mart-s-slowness-stock-shelves-worsens-as-sales-stay-s.html), Wal-Mart is struggling "to restock store shelves as U.S. sales slump (http://www.bloomberg.com/news/2013-02-27/wal-mart-s-slowness-stock-shelves-worsens-as-sales-stay-s.html)"...
Evelin Cruz, a department manager at the Wal-Mart Supercenter in Pico Rivera, California, said Simon’s comments from the officers’ meeting were “dead on.”
“There are gaps where merchandise is missing,” Cruz said in a telephone interview. “We are not talking about a couple of empty shelves. This is throughout the store in every store. Some places look like they’re going out of business.”

This all comes on the heels of an internal Wal-Mart memo that was leaked to the press earlier this month that described February sales as a "total disaster".

#8 Electronics retailer Best Buy continues to struggle mightily. Best Buy just announced that it will be eliminating 400 jobs (http://www.businessinsider.com/best-buy-layoffs-2013-2) at its headquarters in Richfield, Minnesota.

#9 It is being projected that many of the largest retail chains in America, including Best Buy, will close down hundreds of stores during 2013. The following is a list of projected store closings for 2013 that I included in a previous article (http://theeconomiccollapseblog.com/archives/retail-apocalypse-why-are-major-retail-chains-all-over-america-collapsing)...

Best Buy
Forecast store closings: 200 to 250

Sears Holding Corp.
Forecast store closings: Kmart 175 to 225, Sears 100 to 125

J.C. Penney
Forecast store closings: 300 to 350

Office Depot
Forecast store closings: 125 to 150

Barnes & Noble
Forecast store closings: 190 to 240, per company comments

Gamestop
Forecast store closings: 500 to 600

OfficeMax
Forecast store closings: 150 to 175

RadioShack
Forecast store closings: 450 to 550

#10 Another sign that consumer spending is slowing down is the fact that less stuff is being moved around in our economy. As I have mentioned previously (http://theeconomiccollapseblog.com/archives/20-signs-that-the-u-s-economy-is-heading-for-big-trouble-in-the-months-ahead), freight shipment volumes have hit their lowest level in two years (http://www.zerohedge.com/news/2013-02-19/freight-shipment-volumes-plunge-lowest-two-years), and freight expenditures have gone negative (http://www.zerohedge.com/news/2013-02-19/freight-shipment-volumes-plunge-lowest-two-years) for the first time since the last recession.

#11 Many young adults have no discretionary income to spend because they are absolutely drowning in student loan debt. According to the New York Federal Reserve, student loan debt nearly tripled (http://www.businessinsider.com/ny-fed-student-loans-presentation-2013-2) between 2004 and 2012.

#12 The student loan delinquency rate in the United States is now at an all-time high (http://www.zerohedge.com/news/2013-02-28/delinquencies-student-loans-surpass-those-credit-card-debt). It is only a matter of time before the student loan debt bubble bursts.

#13 Due to a lack of jobs and high levels of debt, poverty among young adults in America is absolutely exploding. Today, U.S. families that have a head of household that is under the age of 30 have a poverty rate of 37 percent (http://lrfuller.wordpress.com/2012/10/10/the-generation-that-never-stood-a-chance/).

#14 According to one recent survey, 62 percent of all middle class Americans say that they have had to reduce household spending (http://www.foxnews.com/politics/2012/08/22/middle-class-suffers-worst-decade-in-modern-history-report-says/) over the past year.

#15 Median household income in the United States has fallen for four consecutive years (http://theeconomiccollapseblog.com/archives/things-are-getting-worse-median-household-income-has-fallen-4-years-in-a-row). Overall, it has declined by more than $4000 during that time span.

#16 According to the U.S. Census Bureau (http://articles.washingtonpost.com/2012-09-12/business/35496368_1_income-inequality-median-household-income-middle-class), the middle class is currently taking home a smaller share of the overall income pie than has ever been recorded before.

Are you starting to get the picture?

Retailers are desperate for sales, but you can't squeeze blood out of a rock.

For much more on how the middle class is absolutely drowning in debt, please see this article: "Money Is A Form Of Social Control And Most Americans Are Debt Slaves (http://theeconomiccollapseblog.com/archives/money-is-a-form-of-social-control-and-most-americans-are-debt-slaves)".

But if you listen to the mainstream media (http://theeconomiccollapseblog.com/archives/tag/mainstream-media), they would have you believe that happy days are here again.

Right now, everyone seems to be quite giddy about the fact that the Dow is marching toward an all-time high. And I actually do believe that the Dow will blow right past it. In fact, it is even possible that we could see the Dow hit 15,000 before everything starts falling apart.

But at some point, the financial markets (http://theeconomiccollapseblog.com/archives/category/financial-markets) will catch up with economic reality. It is just a matter of time.

In the meanwhile, those that are wise are taking advantage of these times of plenty to prepare (http://theeconomiccollapseblog.com/archives/how-to-prepare-for-the-difficult-years-ahead) for the great economic drought that is coming.

Don't be caught living paycheck to paycheck and totally unprepared when the next wave of the economic collapse strikes. Anyone that believes that this debt-fueled bubble of false hope can last indefinitely is just being delusional.

seletar

04-03-13, 12:38

http://michaelsnyder.mensnewsdaily.com/2013/03/12-things-that-just-happened-that-show-the-next-wave-of-the-economic-collapse-is-almost-here/

12 Things That Just Happened That Show The Next Wave Of The Economic Collapse Is Almost Here

March 3, 2013

By Michael Snyder (http://michaelsnyder.mensnewsdaily.com/author/michael/)

http://theeconomiccollapseblog.com/wp-content/uploads/2013/03/12-Things-That-Just-Happened-That-Show-The-Next-Wave-Of-The-Economic-Collapse-Is-Almost-Here-300x192.jpg (http://theeconomiccollapseblog.com/archives/12-things-that-just-happened-that-show-the-next-wave-of-the-economic-collapse-is-almost-here/12-things-that-just-happened-that-show-the-next-wave-of-the-economic-collapse-is-almost-here)

Are we running out of time? For the last several years, we have been living in a false bubble of hope that has been fueled by massive amounts of debt and bailout money. This illusion of economic stability has convinced most people that the great economic crisis of 2008 was just an "aberration" and that now things are back to normal. Unfortunately, that is not the case at all. The truth is that the financial crash of 2008 was just the first wave of our economic troubles. We have not even come close to recovering from that wave, and the next wave of the economic collapse is rapidly approaching. Our economy is like a giant sand castle that has been built on a foundation of debt and toilet paper currency. As each wave of the crisis hits us, the solutions that our leaders will present to us will involve even more debt and even more money printing. And each time, those "solutions" will only make our problems even worse. Right now, events are unfolding in Europe and in the United States that are pushing us toward the next major crisis moment. I sincerely hope that we have some more time before the next crisis overwhelms us, but as you will see, time is rapidly running out.

The following are 12 things that just happened that show the next wave of the economic collapse is almost here...

#1 According to TrimTab's CEO Charles Biderman (http://www.zerohedge.com/news/2013-03-01/insider-selling-buying-hits-record-biderman-welcomes-new-recession), corporate insider purchases of stock have hit an all-time low, and the ratio of corporate insider selling to corporate insider buying has now reached an astounding 50 to 1....
While retail is being told to buy-buy-buy, Biderman exclaims that "insiders at U.S. companies have bought the least amount of shares in any one month," and that the ratio of insider selling to buying is now 50-to-1 - a monthly record.

#2 On Friday we learned that personal income in the United States experienced its largest one month decline in 20 years (http://money.cnn.com/2013/03/01/news/economy/income-spending-saving/)...
Personal income decreased by $505.5 billion in January, or 3.6%, compared to December (on a seasonally adjusted and annualized basis). That's the most dramatic decline since January 1993, according to the Commerce Department.

#3 In a stunning move, Michigan Governor Rick Snyder says that he will appoint an emergency financial manager (http://www.bloomberg.com/news/2013-03-01/snyder-says-detroit-needs-emergency-manager-to-end-fiscal-crisis.html?alcmpid=breakingnews) to take care of Detroit's financial affairs...
Snyder, 54, took a step he avoided a year ago, empowering an emergency financial manager who can sweep aside union contracts, sell municipal assets, restructure services and reorder finances. He announced the move yesterday at a public meeting in Detroit.

If this does not work, Detroit (http://theeconomiccollapseblog.com/archives/tag/detroit) will almost certainly have to declare bankruptcy. If that happens, it will be the largest municipal bankruptcy in U.S. history.

#4 On Friday it was announced that the unemployment rate in Italy had risen to 11.7 percent (http://www.cnbc.com/id/100510658). That was a huge jump from 11.3 percent the previous month, and Italy now has the highest unemployment rate that it has experienced in 21 years.

#5 The youth unemployment rate in Italy has risen to a new all-time record high of 38.7 percent (http://www.cnbc.com/id/100510658).

#6 On Friday it was announced that the unemployment rate in the eurozone as a whole had just hit a brand new record high of 11.9 percent (http://www.bbc.co.uk/news/business-21627623?print=true).

#7 On Friday it was announced that the unemployment rate in Greece has now reached 27 percent (http://www.bbc.co.uk/news/business-21627623?print=true), and it is being projected that it will reach 30 percent (http://news.yahoo.com/greeces-weakened-workforce-starts-crack-073509752--finance.html)by the end of the year.

#8 The youth unemployment rate in Greece is now an almost unbelievable 59.4 percent (http://www.zerohedge.com/news/2013-03-01/europes-scariest-chart-update-italy-now-worse-portugal).

#9 On Saturday, hundreds of thousands of protesters (http://www.france24.com/en/20130302-hundreds-thousands-march-against-austerity-portugal-0) filled the streets of Lisbon and other Portuguese cities to protest the austerity measures that are being imposed upon them. It was reportedly the largest protest in the history of Portugal.

#10 According to Goldman Sachs, bank deposits declined all over Europe (http://www.zerohedge.com/news/2013-02-27/bank-deposits-decline-across-europe-january) during the month of January.

#11 Over the weekend, the deputy governor of China's central bank declared that China is prepared for a "currency war (http://www.france24.com/en/20130302-china-fully-prepared-currency-war-banker-0)"...
A top Chinese banker said Beijing is "fully prepared" for a currency war as he urged the world to abide by a consensus reached by the G20 to avert confrontation, state media reported on Saturday.

Yi Gang, deputy governor of China's central bank, issued the call after G20 finance ministers last month moved to calm fears of a looming war on the currency markets at a meeting in Moscow.

Those fears have largely been fuelled by the recent steep decline in the Japanese yen, which critics have accused Tokyo of manipulating to give its manufacturers a competitive edge in key export markets over Asian rivals.

#12 Italy is an economic basket case (http://theeconomiccollapseblog.com/archives/will-italy-be-the-spark-that-sets-off-financial-armageddon-in-europe) at this point, and the political gridlock in Italy is certainly not helping matters. Former comedian Beppe Grillo's party could potentially tip the balance of power one way or the other in Italy, and over the weekend (http://www.reuters.com/article/2013/03/03/us-italy-vote-grillo-idUSBRE92205720130303) he made some comments that are really shaking things up over in Europe. For one thing, he is suggesting that Italy should hold a referendum on the euro...
"I am a strong advocate of Europe. I am in favor of an online referendum on the euro," Beppe Grillo told Bild am Sonntag.

Such a vote would not be legally binding in Italy, where referendums can only be used to repeal laws or parts of laws, but would carry political weight. Grillo has said in the past that membership of the euro should be up to the Italian people.

In addition, Grillo is also suggesting that Italy's debt has gotten so large that renegotiation (http://www.telegraph.co.uk/news/worldnews/europe/italy/9904270/Beppe-Grillo-says-Italy-may-soon-have-to-pull-out-of-euro.html) is the only option...
In an interview with a German magazine published on Saturday, Mr Grillo said that “if conditions do not change” Italy “will want” to leave the euro and return to its former national currency.

The 64-year-old comic-turned-political activist also said Italy needs to renegotiate its €2 trillion debt.

At 127 per cent of gross domestic product (GDP), it is the highest in the euro zone after Greece.

"Right now we are being crushed, not by the euro, but by our debt. When the interest payments reach €100 billion a year, we’re dead. There’s no alternative,” he told Focus, a weekly news magazine.

He said Italy was in such dire economic straits that “in six months, we will no longer be able to pay pensions and the wages of public employees.”

And of course government debt has taken center stage in the United States as well.

The sequester cuts have now gone into effect, and they will definitely have an effect on the U.S. economy. Of course that effect will not be nearly as dramatic as many Democrats are suggesting (http://theeconomiccollapseblog.com/archives/all-of-this-whining-and-crying-about-the-sequester-shows-why-america-is-doomed), but without a doubt those cuts will cause the U.S. economy to slow down a bit.

And of course the U.S. economy has already been showing plenty of signs of slowing down lately. If you doubt this, please see my previous article entitled "Consumer Spending Drought: 16 Signs That The Middle Class Is Running Out Of Money (http://theeconomiccollapseblog.com/archives/consumer-spending-drought-16-signs-that-the-middle-class-is-running-out-of-money)".

So what comes next?

Well, everyone should keep watching Europe very closely, and it will also be important to keep an eye on Wall Street. There are a whole bunch of indications that the stock market is at or near a peak. For example, just check out what one prominent stock market analyst recently had to say (http://www.businessinsider.com/walter-zimmerman-warns-of-financial-crisis-2013-2)...
"Every reliable technical tool is warning of major peaking action," said Walter Zimmerman, the senior technical analyst at United-ICAP. "This includes sentiment, momentum, classical chart patterns, and Elliott wave analysis.

"Most of the rally in the stock market since 2009 can be chalked up to the Federal Reserve’s attempt to create a ‘wealth effect’ through higher stock market prices. This only exacerbates the downside risk. Why? The stock market no is longer a lead indicator for the economy. It is instead reflecting Fed manipulation. Pushing the stock market higher while the real economy languishes has resulted in another bubble.

"The next leg down will not be a partial correction of the advance since the 2009 lows. It will be another major financial crisis. The worst is yet to come."

Sadly, most people will continue to deny that anything is wrong until it is far too late.

Many areas of Europe (http://theeconomiccollapseblog.com/archives/category/europe) are already experiencing economic depression (http://theeconomiccollapseblog.com/archives/tag/economic-depression), and it is only a matter of time before the U.S. follows suit.

Time is running out, and I hope that you are getting ready.

So what do you think?

How much time do you believe that we have left before the next wave of the economic collapse strikes?

bargain hunter

04-03-13, 13:49

seems like market speculation on this measure is very strong. i even received an sms from an agent speculating on this.

ahead of 5 (or more?) launches in march:

Trilliniq, the sennett, d'nest, bartley ridge, urban vista. did i leave out any?

http://sammyboy.com/showthread.php?146741-New-property-cooling-measure-will-be-announce-this-week-(Rumour)
Posted 04 Mar 2013

New property cooling measure will be announce this week. (Rumour)

Expected New MAS measure this coming Friday. It maybe touching on the MSR.

MAS is considering reviewing the Mortgage Servicing Ratio (MSR) for private property to be like HDB ruling. E.g. 30% mortgage servicing ratio.

Which could mean private property buyer can only use 30% of borrower's income to service the mortgage loan. E.g. If buyer income is $10k, max servicing loan monthly installment is $3k. HDB already implement this rule on 11 Jan 2013.

indomie

04-03-13, 14:11

seems like market speculation on this measure is very strong. i even received an sms from an agent speculating on this.

ahead of 5 (or more?) launches in march:

Trilliniq, the sennett, d'nest, bartley ridge, urban vista. did i leave out any?
Now even if u have a fair amount of cash stash.... U cannot borrow above your pay grade.

bargain hunter

04-03-13, 14:13

that means retirees can no longer buy properties for investment? :confused: not very logical leh?

Now even if u have a fair amount of cash stash.... U cannot borrow above your pay grade.

amk

04-03-13, 14:20

that means retirees can no longer buy properties for investment? :confused: not very logical leh?

and how do you enforce this on foreigners ? a PRC can produce an income of 100,000 CNY a month no problem ;)

and self employed, massively undeclared type (agents, small shop bosses), all cannot buy anything already rite ?

chiaberry

04-03-13, 14:22

and self employed, massively undeclared type (agents, small shop bosses), all cannot buy anything already rite ?

:rolleyes: :rolleyes: :rolleyes:

I wonder if rental income also count in MSR?

bargain hunter

04-03-13, 14:28

so u think such a measure or anything related to it is unlikely?

and how do you enforce this on foreigners ? a PRC can produce an income of 100,000 CNY a month no problem ;)

and self employed, massively undeclared type (agents, small shop bosses), all cannot buy anything already rite ?

amk

04-03-13, 14:38

so u think such a measure or anything related to it is unlikely?

I think it's unlikely. You might as well declare no SGD loan to foreigners full stop. MAS did this in 1996.

and also buying as a company how to enforce "income" ?

bargain hunter

04-03-13, 14:42

LTV for buying as a company is already low enough not to require income leh.

wah, u open golden mouth, later MAS declare no sgd loan to foreigners and then 30% MSR for locals! :scared-1: ;)

I think it's unlikely. You might as well declare no SGD loan to foreigners full stop. MAS did this in 1996.

and also buying as a company how to enforce "income" ?

smellyfish

04-03-13, 14:47

so far commercial properties have completely CM exempt.

are they going to be so behind the curve again in that sector:banghead:

babyt

04-03-13, 14:57

Now even if u have a fair amount of cash stash.... U cannot borrow above your pay grade.

like tha the rich get richer and can stay private and middle class can stick to hdb?

eng81157

04-03-13, 16:23

oh sei liao!!!!

"Among the new rules announced by Beijing on Friday was a 20 percent capital gains tax on home sales, well up from the previous one to two percent of the sale price"

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1257773/1/.html

lai lai, more hot money lai liao......time to roll out the carpet for the ultra rich PRCs

DC33_2008

04-03-13, 16:26

China latest cooling measures really deadly.

China shares end down 3.7% on property rules
Posted: 04 March 2013 1644 hrs

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SHANGHAI - Chinese shares fell 3.65 percent to close at a seven-week low after the government last week unveiled fresh measures to cap rising property prices, dealers said.

The benchmark Shanghai Composite Index ended down 86.11 points to 2,273.40 on turnover of 143.0 billion yuan (US$23.0 billion), its weakest finish since January 11, when the index ended at 2,243.00.

It was also the biggest single-day decline since August 8, 2011.

Among the new rules announced by Beijing on Friday was a 20 percent capital gains tax on home sales, well up from the previous one to two percent of the sale price.

The government also ordered the central bank to raise downpayments and mortgage lending rates for buyers of second homes in some cities, and told local governments to limit non-residents from buying more than one home.

Property prices are a sensitive issue in China and authorities have sought to control them over the past three years, with measures including restrictions on second and third home purchases, higher minimum downpayments, and taxes in some cities on multiple and non-locally-owned homes.

"The market's rebound, starting in early December, might be over because of the government's fresh tightening measures," Everbright Securities chief strategist Teng Yin told Dow Jones Newswires.

"The new measures issued on Friday are much more rigorous than expected," he added. "The overall market and stocks that are closely related to the housing market, such as cement and home appliance makers, are declining sharply."

Poly Real Estate slumped almost 10 percent to 11.37 yuan, while developer Gemdale also dropped nearly 10 percent to 6.42 yuan.

Shaanxi Qinling Cement was 10 percent off at 6.20 yuan and Zhejiang Jianfeng Group fell 8.26 percent to 9.44 yuan.

But Liu Ligang, an economist for Australia and New Zealand Banking Group in Hong Kong said the impact of the new rules would not be long-lasting.

"Such policies will always have a temporary, noisy, and negative impact," he said in a research note, citing China's continuing urbanisation.

"Long-term demand (for property) will not suddenly disappear," he said.

chiaberry

04-03-13, 16:27

What if SG also impose Capital Gains Tax? :doh:

DKSG

04-03-13, 17:17

What if SG also impose Capital Gains Tax? :doh:

When they decided on such heavy ABSD SSD, they have already decided that cap gain tax is not to be considered for a long time.

This China CM is likely to re-direct funds into Singapore. Countries are now playing the "whose CM is worse" game. Imagine if you are a rich multi millionnaire in China, suddenly Singapore properties look more attractive now vis-a-vis China properties.... At least in Singapore u pay 15% ABSD, you can buy as many as you want - u then add this 15% to your cost and mark up with u sell 4 years later (if possible).

We can wait and see if this tilts the China money back to Sg properties.

DKSG

seletar

04-03-13, 18:09

http://sbr.com.sg/commercial-property/news/heres-how-singapore-developers-will-be-hit-chinas-property-curbs

Singapore Business Review
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 04 Mar 2013

Here's how Singapore developers will be hit by China's property curbs

Will 10% home price dip hurt them?

According to CIMB, Singapore developer stocks that have meaningful exposure in China could see selling pressure in the wake of this event.

But the firm notes that most large-caps have diversified exposure across different asset classes in the China property sector.

The residential segment makes up less of the Singapore developers’ GAV when compared to their China counterparts.

Here's more from CIMB:
CMA and GLP have large exposure in China but they are primarily in retail malls (49% of GAV) and logistics/warehousing (53% of GAV), respectively.

While CapLand still has unsold inventory in China’s tier-1 cities, its China residential GAV remains manageable at only 12% of the total.

Among the large caps, KepLand has the largest exposure with 29% of its GAV in China residential; we estimate that a 10% decline in residential prices will lead to a 6% drop in RNAV, the most among its peers.

Among the small-caps, Hobee has the largest China residential exposure at 24% of its GAV.

seletar

04-03-13, 18:15

http://sbr.com.sg/commercial-property/news/uols-changfeng-project-launch-delayed-until-2014

Singapore Business Review
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 04 Mar 2013

UOL's Changfeng project launch delayed until 2014

It was supposed to be released this year.

According to Nomura, UOL's residential property sales in FY12 were chiefly driven by Katong Regency (244 units sold during the year; fully sold) and Archipelago (473 units sold during the year; fully sold).

St. Patrick’s Garden redevelopment (186 units) and the Bright Hill Drive project (445 units) are scheduled to be launched in the near term.

Here's more from Nomura:
Overseas property sales in FY12 were led by The Esplanade in Tianjin (188 units out of total 522 units sold during the year). While the take-up was more robust than what we had projected, the ASP achieved of c.RMB17,000psm was lower than our expectation.

On the other hand, the Changfeng project in Shanghai is now scheduled to be launched only in 2014F (vs. 2013 previously).

seletar

04-03-13, 18:38

Fallen Angel

http://www.freeoboi.ru/images/718382241.jpg (http://www.google.com.sg/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Egg0MUHl7QiL1M&tbnid=-HByMGrSePKZYM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.freeoboi.ru%2Feng%2Fwallpaper%2F6327.html&ei=2YY0UbrmCIuGkgWB_YGACQ&bvm=bv.43148975,d.bmk&psig=AFQjCNGCXU06u9JIAmrzv1g6lNjCSvLC5A&ust=1362483283224823)

kane

04-03-13, 20:09

we have forummers here in to manga??

bargain hunter

04-03-13, 21:08

siao liao lor, sg gonna need cooling measures to ban sgd loans to foreigners liao lor.

oh sei liao!!!!

"Among the new rules announced by Beijing on Friday was a 20 percent capital gains tax on home sales, well up from the previous one to two percent of the sale price"

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1257773/1/.html

lai lai, more hot money lai liao......time to roll out the carpet for the ultra rich PRCs

sgbuyer

05-03-13, 12:58

Now even if u have a fair amount of cash stash.... U cannot borrow above your pay grade.

This appears to be a protective measure for the banking industry.

It will affect retired and "early retirement" investors as well as cash rich foreign investors whose "income source" cannot be verified.

seletar

06-03-13, 13:52

http://www.cnbc.com/id/100521104

Why China's Property Market Is Getting Scary

Published: Tuesday, 5 Mar 2013 | 2:33 AM ET
By: Ansuya Harjani (http://www.cnbc.com/id/42551921)
Assistant Producer, CNBC Asia

Worries that China's home market is over heating are spreading beyond mainland policymakers -- who recently unveiled a slew of cooling measures (http://www.cnbc.com/id/100516350) -- with key industry players including the head of the country's largest real estate developer warning of huge risks in the sector.

Wang Shi, CEO of Vanke (http://www.cnbc.com/id/100393604) said on CBS News' "60 Minutes" (http://www.cbsnews.com/video/watch/?id=50142079n) show over the weekend that China's property sector was already in a bubble state.

China has seen a boom in the property sector (http://www.cnbc.com/id/100520312) recently, with some cities seeing a 10-fold increase in prices, that have driven the average home buyer out of the market. According to estimates, the cost of a home in Shanghai would be around 45 times the average resident's annual salary.

Shi added that if the property bubble were to burst (http://www.cnbc.com/id/100440730), it would be a "disaster," with a plunge in home prices sparking an "Arab Spring" type social unrest.

Real estate is among the most popular investment vehicles in the country, given volatility in the domestic equity markets, so a steep decline in prices would impact millions of local investors.

The Chinese government announced last Friday measures to curb speculative demand and stabilize prices. It called for stricter enforcement of a 20 percent capital gains tax on home sale profits and asked cities with fast property price increases to raise the down payment requirement and mortgage rates on second homes.

This spooked investors dragging the Shanghai property sub-index 9.3 percent lower on Monday, its biggest daily loss since 2008, as property analysts predicted a 10 percent drop in home prices over the next three to six months.

The outlook for China's real estate sector has serious implications for the commodities market and growth in the world's second largest economy. Property investment accounts for over almost 14 percent of the country's gross domestic product (GDP).

China economist Patrick Chovanec said the heavy construction pipeline in the housing sector was the "biggest concern" in his outlook for the market. The construction boom in recent years, for example, has led to the emergence of so-called ghost towns, or uninhabited townships.

The ratio of residential floor space under construction to floor space sold is rising, in 2012 for every one square meter of space sold 4.4 square meter was under construction, a record high. Before the global financial crisis, in 2008, for example, this equation stood at 3.9.

"We would have to see consistently strong demand to absorb what's in the pipeline," Chovanec told CNBC in a recent interview.

Dariusz Kowalczyk, senior economist, Asia ex-Japan at Credit Agricole, however, is not concerned about oversupply conditions in China.

"Urbanization ensures demand in the cities will remain strong because that's where everyone wants to move," he said.

In addition, "The government has been skillful enough to introduce measures that won't lead to a market crash. It likely prices will stabilize or gains will slow, but we don't have a housing market crash in our central scenario for China."

According to Ren Xianfeng, an economist with IHS Global Insight, a meltdown in the country's housing market would only be caused by two things: a severe slowdown in the economy and/or sharp deleveraging.

"It's not going to take place any time soon, but it's a risk that's building," she said.

seletar

06-03-13, 14:24

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1258039/1/.html

MPs raise concerns over rising property prices

Channel News Asia
Posted: 05 March 2013 2112 hrs

SINGAPORE: Several Members of Parliament raised concerns over rising property prices and competition with foreign investments.

They suggested the government look to existing policy frameworks in other countries as examples of how to curb foreign speculation of property.

Mr Christopher De Souza, MP for Holland-Bukit Timah GRC, said: "In Australia, all acquisitions of residential real estate by foreign interest require prior foreign investment approval.

"The Australian model essentially allows foreigners to buy new developments while restricting their subsequent sale to Australian residents at a price they can reasonably afford. We can institute this double prevention model in Singapore as it both tempers investment demand and restricts the resale incentive."

Mr R Dhinakaran, Nominated MP, said: "I will also like to point the attention towards measures in larger land rich neighbouring country Malaysia, where properties below 500,000 ringgits are reserved for Malaysians only.

"This ensures the quantum of monies competing for normal houses is not unlimited. In other words, it is a competition of equals at least in some way. Further, to avoid foreigners from speculating we could impose rules to ensure foreigner buying a property cannot avail any loan from banks in Singapore. This would mean leveraging will not fuel in speculation in the property sector."

- CNA/de

seletar

06-03-13, 14:30

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1258050/1/.html

En bloc sales market set to cool further in 2013: analysts

Channel News Asia
By Thomas Cho | Posted: 05 March 2013 2255 hrs

SINGAPORE: The moribund property en bloc sales market looks set to cool down further. Experts expect total transactions in the collective sales market to decline to around S$1.5 billion in 2013.

Global real estate services firm, Jones Lang LaSalle expects en bloc activities in Singapore to slow down from S$3 billion in 2011 to S$2 billion in 2012 and likely to go even lower than 2012 numbers this year.

However, property analysts said developers are still on the lookout for land to develop and they will likely go for smaller plots.

En bloc sales activities reached fever-pitch in 2007 -- hitting a value of close to S$12 billion. But the recent slew of property cooling measures -- like restricting the loan tenure, the additional buyer's stamp duty, and the latest changes in property tax structure -- has somewhat cooled down the segment.

Several developments, like Villa Des Flores in the prime district 11 area -- which has been put up for collective sale for the third time since its initial launch in June 2012 --, has remained unsold.

Karamjit Singh, head of investments & residential at Jones Lang LaSalle, said: "With caution in the air, developers tend to be a bit more circumspect with land acquisitions, but that does not necessarily mean the en bloc market is totally dead. Overall, we expect volume to slow down compared to the last two years."

Property experts said there is still demand for en bloc sites in niche areas. For instance, an en bloc deal was just completed for Ultra Mansion in the Novena district. The 48-unit development was sold for over S$149 million to a Hong Kong-listed real estate developer.

Meanwhile, property consultant Jones Lang La Salle said it is looking to close two residential en bloc sales transaction soon.

Christina Sim, director of investment for capital markets at Cushman & Wakefield, said: "Properties in well located hubs, properties near MRT stations and properties basically below the S$200 million mark or even the S$100 million mark, it is still very saleable and there is still a shortage. I feel that developers still need to land bank and they still need to find suitable sites for development."

Although the government has released more land sites under its land sales programme, experts said they may not be suitable for the smaller developers because of their larger plot sizes and high reserve prices.

Also, consultants said developers are now moving into the retail and commercial en bloc space as well. San Centre, a 12-storey office building along Chin Swee Road, is now up for collective sale by tender.

-CNA/ac

seletar

06-03-13, 15:34

http://sbr.com.sg/commercial-property/news/singapore-property-developers-are-starting-pack-and-go-abroad

Singapore Business Review
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 06 Mar 2013

Singapore property developers are starting to pack up and go abroad

Residential sector is scaring them off.

According to CIMB, developers' core 4Q12 results were mostly in line as lower development earnings have been built into expectations. This was evident for the more Singapore-centric developers.

The strong yoy gains came from 1) revaluation gains on compressed cap rates and rental reversions (REITs, CapLand and UOL) and completion of development projects (UOL, CMA and GLP) and 2) overseas profits on the hand over of the China residential projects (CapLand and KepLand).

Here's more from CIMB:
We expect these two trends to continue dictating earnings for developers in FY13. While the recent implementation of policy curbs in China is likely to curtail development volumes, most of the sales for FY13 delivery have already been locked in.

What stood out in this season outside the results were 1) developers' bearish view on the Singapore residential sector and 2) increased willingness to venture overseas to diversify income.

The latter was evident among the more Singapore-domiciled developers like CityDev, UOL and OUE which indicated that part of their excess capital could increasingly be allocated to overseas investments.

The common target areas mentioned were China and Iskandar/Malaysia though most also said that they will adopt a measured approach.

Another commonality is the preference for non-residential assets, both locally and overseas, a reflection of the developer‟s less sanguine view on the Singapore and China housing markets.

In Singapore, most believe that property prices will correct after the recent cooling measures. The latest cooling measures in Singapore and China have deflated RNAV upside potential for the Singapore developers though we note that exposures to these remain manage able

kane

06-03-13, 21:55

or you can buy their stocks, let them do the running around the world. you sit here and collect dividends.

seletar

07-03-13, 17:49

http://www.channelnewsasia.com/stories/afp_world_business/view/1258244/1/.html

Eurozone recession deepens

Channel News Asia
Posted: 06 March 2013 2018 hrs

BRUSSELS: The 17-nation Eurozone sank further into recession in the last three months of 2012 as the debt crisis continued to exact a heavy price, official data showed Wednesday.

The Eurozone economy shrank 0.6 percent in the fourth quarter of 2012 compared with the third quarter when it contracted 0.1 percent, the Eurostat data agency said, confirming initial estimates given in February.

For the full 27-member European Union, the economy was 0.5 percent smaller in the fourth quarter after a marginal gain of 0.1 percent in the third, Eurostat said.

A recession is counted as two consecutive quarterly economic contractions.

Compared with fourth quarter 2011, the Eurozone economy was down 0.9 percent and the EU 27 off 0.6 percent.

Among the major economies, European powerhouse Germany shrank 0.6 percent in the fourth quarter after a gain of 0.2 percent in the third and France slipped 0.3 percent after growth of 0.1 percent.

Non-euro Britain lost 0.3 percent after sharp growth of 1.0 percent in the third quarter, boosted by the London Olympics.

Among the fourth quarter best performers were Estonia, which grew 0.9 percent and Lithuania, up 0.7 percent, while bailed-out Portugal was the weakest, with its economy shrinking 1.8 percent.

Eurostat said that for 2012 as a whole, the Eurozone economy contracted 0.6 percent and the EU 0.3 percent.

Data so far for 2013 suggests the European economy is stabilising after a very bad 2012 but the outlook remains weak and uncertain.

Howard Archer of IHS Global Insight said the Eurozone recession may have deepened in the fourth quarter but it should mark the bottom of the slump.

"The good news is that the fourth quarter of 2012 almost certainly marked the low point for Eurozone economic activity as a significant easing of Eurozone sovereign debt tensions underpinned by the European Central Bank's policy actions" has boosted confidence and the markets, Archer said in a statement.

"The bad news is that real economic activity is yet to show major improvement in many countries and it looks highly likely that growth will remain a major struggle for the Eurozone for some time to come."

-AFP/fl

seletar

07-03-13, 17:54

http://sbr.com.sg/commercial-property/news/new-property-policies-could-badly-hurt-investment-demand

Singapore Business review
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 07 Mar 2013

New property policies could badly hurt investment demand

You'll be surprised at the tax rates.

According to Knight Frank, the new property tax policies are akin to 'another shot' on top of the existing cooling measures, which could discourage purchase of private properties for investment purposes, while having a marginal impact on owner-occupied residential properties.

Under the new policies, property tax rate for non-owner-occupied residential properties and vacant residential properties are more than twice the rate for owner-occupied properties, given similar Annual Value (AV).

Here's more from Knight Frank:
For example, a property with AV of $60,000 will be subject to property tax rates of up to 5 or 6 per cent if it is occupied by the owners; or up to 13 or 14 per cent if it is leased out or vacant.

In another case, a property with AV of $70,000 will be subject to property tax rates of up to 6 per cent if it is occupied by the owners and up to 15 per cent or 16 per cent if it is leased out or vacant.

In terms of property tax payable, investment properties will also see higher increase compared to owner-occupied properties. For example, a $12,000-AV property saw a decline of 33 per cent in payable tax quantum if it is owner-occupied but saw no change in payable tax quantum if it is leased out or left vacant.

A property of $100,000 AV will experience 23 per cent tax increase under owner-occupation status and 40 per cent tax increase under investment status.

Holding costs for residential homes as an investment asset become higher with this new property tax regime. While ABSD is a one-off initial cost, property tax is an annual expenditure, which adds a fair bit of costs to high-end home owners and investors.

The removal of property tax refund concession for vacant properties further discourages speculators and short-term investors who look for capital gains rather than long-term investment returns.

These buyers can no longer claim tax refund by leaving their units vacant, and letting out is another way to mitigate holding cost with a rental income stream.

With lease contracts varying from 1-year to 3-year term and coupled with initial fitting out costs, it might be more worthwhile for investors to hold their units over a longer period to plough back costs than flipping vacant units for quick capital gains.

seletar

07-03-13, 17:57

http://sbr.com.sg/residential-property/news/luxury-home-owners-must-brace-themselves-tighter-leasing-market

Singapore Business Review
RESIDENTIAL PROPERTY | Staff Reporter, Singapore
Published: 07 Mar 2013

Luxury home owners must brace themselves for tighter leasing market

Especially with a slew of 86,000 units.

According to Knight Frank, with the removal of property tax refund concession, property investors will inadvertently face higher risk from higher taxes.

Some may lower rents to quickly secure a tenant to counter higher taxes with the inability to claim vacancy tax refund.

Coupled with the large impending supply of residential properties of about 86,000 units to be completed by 2017, the leasing market would be more competitive especially for owners of luxury residential properties.

Here's more from Knight Frank:
In addition, the increases in tax payable would lead to further yield compression, as owners have to fork out additional costs for property tax on top of the other holding costs, such as management fees, income tax and mortgage interest.

The attractiveness of holding a residential investment property for rental income objective would be affected with this new property tax regime.

Lemonlaw

07-03-13, 22:22

seletar

08-03-13, 10:52

http://www.todayonline.com/singapore/sandwiched-class-not-forgotten-says-tharman

Sandwiched class not forgotten, says Tharman

http://www.todayonline.com/sites/default/files/styles/photo_gallery_image/public/14251481_0.JPG
Mr Tharman said the Government intends to bring house prices down ‘not just in the short term, but long-term’. TODAY file photo

Govt intends to bring house prices down relative to income, review healthcare financing

Channel News Asia
By Teo Xuanwei (http://www.todayonline.com/authors/teo-xuanwei) - 08 Mar 2013

SINGAPORE — The sandwiched class will get help in meeting its rising expectations and aspirations, particularly in the affordability of housing and healthcare, Deputy Prime Minister Tharman Shanmugaratnam pledged yesterday, as Parliament approved Budget 2013.

Laying out the Government’s overall approach to social spending, Mr Tharman wrapped up the three-day Budget debate by devoting a part of his speech to outlining changes in the pipeline that will benefit the middle-income, including the review of the healthcare financing framework, where this stratum will be the “major beneficiary”.

For housing, Mr Tharman noted that home prices have risen “much faster” than incomes in the last few years. The Government intends to “bring house prices down relative to income — not just in the short-term, but long-term”, he said.

Details will be shared in the Committee of Supply debates for the Ministry of Health and the Ministry of National Development.

Challenges facing middle-income Singaporeans that Members of Parliament (MPs) have raised over the past three days included employment opportunities and whether they have largely been left out of the goodies in this year’s fiscal measures.

Mr Tharman reiterated that the sandwiched class has not been forgotten, pointing to how, for instance, the Wage Credit Scheme was “deliberately” designed to include middle-income earners as one way to ensure a level playing field for Singaporeans in terms of job opportunities and career progression.

There have also been “adequate benefits” from the Government’s overall fiscal system that have flowed to the middle-income, he noted, citing the “significant improvements” that have been made in recent years, including in childcare subsidies and expanding university bursaries to children from middle-income households.

Overall, the social support system for this group revolved around growing their incomes while keeping their taxes low, said Mr Tharman, who is also Finance Minister.

Referring to the Budget’s focus on economic restructuring, he said: “First and foremost, we’ve got to succeed in quality growth ... to provide for income growth for Singaporeans, including especially the middle-income group.

“Good jobs with incomes that can go up and more than cover the cost of living ... that’s a key priority. Quality growth is not just an economic strategy but a social strategy.”

He added: “Through our priority to achieve quality growth, and through keeping the tax burden low, we would be able to allow the middle-income group’s disposable income to rise. That’s our basic strategy.”

Mr Tharman also spoke about the lower-income, noting that the Government had to tailor its social support measures to meet the “distinct needs” of older and younger lower-income households. Given that older low-income earners received little education and have seen only slight improvements to their wages, Mr Tharman said that the key to ensuring they can age with dignity was through pay supplement schemes, such as Workfare, and boosting their employability through the Special Employment Credit and Workfare Training Scheme, among others.

The younger generation of lower-income Singaporeans required a different strategy. “Provide every leg-up, rather than a handout. Social mobility is a key feature of our policies,” he said.

“We have to be a continuous meritocracy ... constant opportunities to upgrade, to switch line, to pick up new skills, to develop new mastery.”

Singapore’s social support system should also not just be about spending more, but about “spending better in achieving our objectives” of helping people to “stand on their own feet” and targeting help at those who need it most. He cited how despite the United States significantly enhancing income transfers to the poor since the 1970s, poor neighbourhoods have gotten worse.

He added that the Government is “not going for progressivity or redistribution for its own sake”, rather, it designs policies that stand the best chance of sustaining economic dynamism and building a society that all Singaporeans can truly benefit from.

“The litmus test is not how progressive a fiscal system looks. The litmus test is whether it will truly help lower- and middle-income Singaporeans to have better lives, and that is not a question with straight forward answers,” said Mr Tharman.

He noted that schemes like the Workfare Income Supplement were in fact “negative taxes”, which meant Singapore’s tax structure did not only span zero to 20 per cent tax, rather, it was negative 30 per cent to positive 20 per cent.

seletar

08-03-13, 10:57

http://www.bloomberg.com/news/2013-03-07/hong-kong-mortgage-rule-may-boost-rates-standard-chartered-says.html

Hong Kong Mortgage Rule May Boost Rates, Standard Chartered Says

Bloomberg
By Stephanie Tong - Mar 7, 2013 1:58 PM GMT+0800

Hong Kong banks may increase the interest rates they charge on mortgages as the city’s new risk rule pushes up funding costs, said Benjamin Hung, chief executive officer for the city at Standard Chartered Plc. (STAN) (http://www.bloomberg.com/quote/STAN:LN)

The Hong Kong Monetary Authority on Feb. 22 told banks to set the risk weighting (http://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2013/20130222e2.pdf) for new residential mortgages at a minimum of 15 percent to ensure lenders’ capital cushions are deep enough. The measure will raise the home loan funding cost at Standard Chartered by 20 to 25 basis points, Hung said today.

“The new measure has led to higher costs for banks’ new mortgage business,” Hung told reporters in Hong Kong today. “The higher funding cost will inevitably be passed on. It’s just a matter of time.”

Since taking office in July, Hong Kong Chief Executive Leung Chun-ying has added property taxes, favored local permanent residents over foreigners, tightened mortgage rules and increased supply after home prices doubled in the past four years. Standard Chartered ranked fourth in the city’s home loan market last month with a 13 percent share, according to Hong Kong-based mReferral Mortgage Brokerage Services (http://www.mreferral.com/english/index.html).

Growth in the bank’s Hong Kong mortgage loan book may slow to less than 10 percent this year, Mary Huen, head of consumer banking for Hong Kong, said today. Residential mortgages at the Hong Kong unit grew 11 percent last year to $21.4 billion. The lender assigned a risk weighting of less than 10 percent to home loans before the recent rule change, Huen said.

In addition to the risk-weighting floor on home loans, Hong Kong doubled the sales tax on property costing more than HK$2 million and tightened the stress-test requirement on mortgage applicants as it continues trying to cool the real estate market, Financial Secretary John Tsang and Hong Kong Monetary Authority Chief Executive Norman Chan said on Feb. 22.

Bubble Risk

The latest curbs have slowed down the property market, Nixon Chan, head of retail banking and wealth management at Hang Seng Bank Ltd. (11) (http://www.bloomberg.com/quote/11:HK), said this week. The risk of a property market bubble has increased even after the government on Oct. 26 introduced new taxes targeted at non-local home buyers and increased a resale tax on residential transactions.

The value of new residential mortgage loans drawn (http://www.hkma.gov.hk/eng/key-information/press-releases/2013/20130227-3.shtml) in Hong Kong declined 16 percent to HK$15.9 billion in January, the second monthly drop after an 11 percent decrease in December, monetary authority figures show.

To contact the reporter on this story: Stephanie Tong in Hong Kong at [email protected] ([email protected])

seletar

08-03-13, 11:05

http://www.cnbc.com/id/100532907

China's 'Ghost Cities' Warn of Property Bubble: Chanos

Published: Thursday, 7 Mar 2013 | 11:08 AM ET
By: Matthew J. Belvedere (http://www.cnbc.com/id/47073026)
Producer, CNBC's "Squawk Box"

Avoid investments that rely on the Chinese real estate market because the bubble there is getting "bigger, and bigger, and bigger," hedge fund manager Jim Chanos told CNBC on Thursday.

"Anything that's depending on the Chinese economic miracle I would be careful of," Chanos said in a "Squawk Box (http://www.cnbc.com/id/15838368)" interview.

(Read More: Why China's Property Market Is Getting Scary (http://www.cnbc.com/id/100521104))

The founder of Kynikos Associates, said it was "somewhat controversial" when he started to warn about real estate in China three years ago. But he added, "[the] property bubble is visual. You can't miss it [now]."

He was referring to the growing problem of so-called "ghost cities" there, which were the subject of a "60 Minutes" investigation (http://www.cbsnews.com/8301-18560_162-57572185/chinas-real-estate-bubble/) this past weekend.
Correspondent Lesley Stahl reported, "We discovered that the most populated nation on Earth is building houses, districts and cities with no one in them … desolate condos and vacant subdivisions uninhabited for miles and miles and miles and miles."

That's because construction accounts for about half of China's $8 trillion economy, Chanos estimated and pointed out that while gross domestic product there slowed to a still fairly robust growth rate of 7.8 percent last year, "corporate profitability there imploded."

He argued, "It's the nature of the [economic] growth. If it's all sticking a shovel in the ground, you get whatever you want."

"But at the end of the day, what's sustainable?" he asked. "Because, as I keep pointing out, every time you finish a building [there], under this model, you have to put up another one."

Comparing the potential Chinese real estate bubble to the one that burst in the U.S. in 2008, Chanos said, "Unlike our buyers who walked away and left it to the banking system and the Fed to sort of bailout. These people are going to lose their life savings. And that could be a big issue in China."

He said he analyzed Chinese government figures and concluded that China is on pace to develop about twice as much in the coming years as it had built in the past three.

"Avoid anything having to do with the Chinese property market — steel, cement, iron ore," he advised investors, saying that he's been shorting these sort of plays.

—By CNBC's Matthew J. Belvedere (http://www.cnbc.com/id/47073026); Follow him on Twitter @Matt_SquawkCNBC (http://twitter.com/Matt_SquawkCNBC)

seletar

08-03-13, 11:42

http://sbr.com.sg/financial-services/news/5-singapore-banks-most-affected-property-tightening-measures

Singapore Business Review
FINANCIAL SERVICES | Staff Reporter, Singapore
Published: 08 Mar 2013

5 Singapore banks most affected by property tightening measures

DBS named least defensive.

Barclays Capital have analysed banks’ mortgage risk weightings and the capital positions amids numerous rounds of property cooling measures over concerns of the property market heating.

It found that DBS (UW) among the local Singapore banks as most affected by property tightening measures due to its low mortgage risk weighting of 6% under the internal-risk based approach.

In Hong Kong, it's Hang Seng Bank with 5% risk mortgage risk weighting.

Here's more from Barclays Capital:

We believe that 1) mortgage rates will rise independent of US interest rate hikes due to tightening system liquidity in Singapore and falling returns on risk weighted assets (RoRWA) due to regulatory tightening measures in Hong Kong and 2) if competition restricts upward mortgage pricing, banks will increasingly refocus their efforts on corporate lending as RoRWA on mortgages becomes increasingly less attractive. Mortgage risk weights are currently as low as 5% for banks using the internal ratings based (IRB) approach due to low probability of default (PD) assumptions used in their internal models given historically low through-the-cycle losses on default.

Hang Seng Bank and DBS appear most at risk: Assuming average mortgage risk weightings are raised to 15%, we find that the core Tier 1 capital adequacy ratios of Hang Seng Bank (UW) in Hong Kong (-34bps) and DBS (UW) in Singapore (-20bps) would likely be the least defensive with their average risk weightings at only 5-6% on our estimates. BOCHK’s average mortgage risk weighting also appears low, but its core Tier 1 ratio

would likely remain high at 13.9% for FY13. For HSBC and STAN, Hong Kong and Singapore mortgages account for only a small part of their group loans and we estimate would only see 2-6bps shave off their core Tier 1 CARs.

http://sbr.com.sg/sites/default/files/imagecache/415w/news/mortgageplayers2_0.PNG (http://sbr.com.sg/sites/default/files/news/mortgageplayers2_0.PNG)
http://sbr.com.sg/sites/default/files/imagecache/415w/news/mortgageplayers.PNG (http://sbr.com.sg/sites/default/files/news/mortgageplayers.PNG)

Rysk

08-03-13, 13:48

Singapore is the playground for the mega rich :scared-1:

http://online.wsj.com/article/SB10001424127887324662404578334330162556670.html
Wealth Over the Edge: Singapore
$26,000 cocktails. Traffic jams freckled with Ferraris. The world's sternest city is now the richest. Why?

seletar

08-03-13, 16:18

http://www.singaporelawwatch.sg/slw/index.php/headlines/21727-57000-investment-homes-face-higher-taxes?utm_source=web%20subscription&utm_medium=web

57,000 investment homes face higher taxes

Straits Times
08 Mar 2013
By Esther Teo

ABOUT a third of Singapore's 169,000 investment homes will face higher property levies once the Budget's new tax structure takes full effect in 2015.

Owners of such units with an annual value of more than $30,000 - or about 57,000 homes - will pay higher taxes, the Ministry of Finance (MOF) told The Straits Times yesterday. The progressive tax rates range from 12 per cent to 20 per cent of a property's annual value.

The other investment homes - about 112,000 properties - have annual values of $30,000 and below, so the existing property tax rate of 10 per cent will continue to apply.

The annual value is the estimated annual rent the property may fetch. An annual value of $30,000, for instance, could apply to a suburban condominium.

Singapore has around 962,000 owner-occupied properties and 169,000 investment homes.

Investment homes - about 15 per cent of the total housing stock - include vacant units, an MOF spokesman said.

Experts say the changes will affect mostly high-end homes, especially with the removal of the property tax refund concession for vacant properties next year.

Savills Singapore research head Alan Cheong said vacant units are likely to be high-end homes as more expatriates are coming in on local packages and have moved into the mid- and mass-market segments over the past few years instead.

Without the tax concession, there might be more high-end homes coming on stream, some held by developers, and that could further dampen rents.

Rents for homes in the prime districts of 9, 10 and 11 have already fallen 7.4 per cent in the three months to Dec 31 compared with the same period a year ago, Mr Cheong noted.

Properties that are vacant despite reasonable efforts by owners to find a tenant, for instance, can get a full property tax refund for the duration of the vacancy. But from the start of next year, they will be taxed at prevailing property tax rates.

Investor Anthony Ong, 48, said he expects his property taxes to increase by a "few hundred dollars" under the new tax regime. "It's not a very big impact as we don't own a very luxurious type of condo but after paying the taxes and the instalments, it will definitely have an impact on our rental yields," he added.

As far as owner-occupied homes go, 97.8 per cent of owners will enjoy lower property taxes, 1 per cent will continue paying no tax while the remaining 1.2 per cent will face higher taxes, the MOF spokesman noted.

Owners of homes with an annual value of $6,000 and less - there are about 9,600 owner- occupied homes in this category - will continue to pay no property tax under both tax structures. These homes include one- and two-room Housing Board flats.

[email protected] ([email protected])

seletar

08-03-13, 16:22

http://sbr.com.sg/residential-property/news/developers-new-sale-units-pegged-12-14000-in-2014

Singapore Business Review
RESIDENTIAL PROPERTY | Staff Reporter, Singapore
Published: 08 Mar 2013

Developers' new sale units pegged at 12-14,000 in 2014

It'll be another tough year.

According to Knight Frank, they expect year 2014 to be a challenging year for the residential property market with the high number of homes to be completed. While the new property tax policies will only take effect starting 2014, we expect downward pressure on market sentiment in 2013 and reiterate our projection of 12,000 to 14,000 developers’ new sale units by year end.

The increased holding cost, lower yields and ample supply conditions will affect all property investors, holding companies, REITs and developers in terms of investment returns.

Meanwhile, the government is quite adamant in taming the property market and is likely to continue to release more supply this year. Further cooling measures can be expected if prices do not cool.

In addition, the anticipated rise in interest rates in 2015 will cause property investors to avert committing excessively in property investment. Investors may look further afield outside Singapore such as Iskandar and London.

Interest in Iskandar Region may pick up quite significantly following Singapore-Malaysia’s announcement of the Rapid Transit System with an estimated 90 minutes train ride to Kuala Lumpur.

seletar

08-03-13, 21:13

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1258721/1/.html

National Development Minister Khaw announces several new housing measures

Channel News Asia
By Hetty Musfirah | Posted: 08 March 2013 1908 hrs

SINGAPORE: A scheme that gives priority allocation for new HDB flats to first-timer married couples with a citizen child below the age of 16, will be extended to pregnant mothers from May this year.

The Parenthood Priority Scheme will also be extended to couples who are married but without children, sometime next year.

National Development Minister Khaw Boon Wan, who announced the new housing measures in Parliament on Friday, said supply will also be ramped up with 25,000 new flats to be launched this year - 2,000 more than previously announced.

Separately, the scheme to provide temporary housing for first-timer married couples with children below 16 years old, while they wait for the completion of their new HDB flats, will be extended to include married HDB first-timers without children.

Mr Khaw said the Parenthood Provisional Housing Scheme has so far attracted some 200 applications.

Another change is to allow singles to buy new HDB flats.

Those aged 35 and above who are buying flats for the first time will be able to buy 2-room BTO flats.

Mr Khaw said these will be for singles earning up to $5,000 as they face more financial difficulty owning a home.

He said the Ministry is still finalising details but aims to let the first batch of eligible singles apply in the July Build-to-Order launch.

Mr Khaw said: "These new flats will be built in non-mature estates in order to keep the prices down. They will come in two sizes - 35 square metres and 45 square metres. And we leave it to them to choose according to their needs and budget.

"A couple of other important details are still being finalised. For example, how much should we subsidise the flats, as compared to married couples? What should the relative priority be between singles and married couples applying for these flats?

"We will settle these outstanding issues as quickly as we can, so that the first batch of eligible singles can apply in the July BTO launch."

Currently, singles aged 35 and above, can only buy HDB flats from the resale market.

Mr Khaw said about 4,000 do so each year.

He said rising resale prices have made it more difficult for singles to buy a flat.

The needs of those who are buying a flat for a second time will also be addressed.

The second-timer quota for 2- and 3-room flats in non-mature estates will be doubled to 30 per cent.

Mr Khaw said the move will help second-timers who need to downgrade.

Out of the 30 percent quota, five per cent will be reserved for divorcees or widowers with children below the age of 16.

Mr Khaw said this will almost guarantee their ability to select a 2-room flat, and significantly increase the chances of those who apply for a 3-room flat.

The changes will be implemented from the May BTO launch.

The debarment period for divorcees to apply for a subsidised flat will also be shortened from five to three years.

Mr Khaw said this will help divorcees move on with their lives, especially those with children.

A new Studio Apartment Priority Scheme will be introduced for seniors from the May BTO exercise.

50 percent of the supply of studio apartments will be reserved for seniors who apply for one, near their current home or near where their married children live.

The new scheme will replace the current Ageing-in-Place Priority and the Married Child Priority Scheme which award priority through giving the seniors more ballot chances.

Mr Khaw said: "Many multi-generational families prefer to live together or close to one another. Last year, we introduced the Multi-Generation Priority Scheme to allow them to apply for the same BTO project with a view to live close by. More than 60 pairs of families have benefited from it, not that many.

"Dr Lee Bee Wah (MP for Nee Soon GRC) suggested that we go further to build some multi-generational flats, say with four bedrooms, to help such families live in the same flat. She advanced strong arguments on how such families could better support, especially the newlyweds, both financially as well as transmitting important cultural values.

"I believe there is some demand but we do not know how big it is. Anyway, I have asked HDB to consider doing so in some BTO developments, to test out their demand."

Mr Khaw also agreed with MP for West Coast GRC Foo Mee Har that many senior citizens have significant assets in their houses.

He said: "This is a good thing, as it opens up opportunities for them to get some retirement income, for example, by subletting their flats or rooms. This year, we have increased their options by implementing the new Silver Housing Bonus (SHB) scheme to facilitate right-sizing, and the Enhanced Lease Buyback Scheme (LBS) to support ageing-in-place.

"But many may still not be aware of the schemes or they may not have accurate information. We will step up public outreach and financial counselling to those who may benefit from these options."

Separately, the Ministry is also planning to introduce a cap on the number of foreigner tenants in HDB blocks.

MP for West Coast GRC Foo Mee Har had suggested a 10 per cent cap for each block, to prevent the growth of foreigner enclaves.

Mr Khaw agreed that there should be a cap, but said some analysis will need to be done to see if 10 per cent is appropriate.

And while implementation details are being sorted out, the HDB will reduce the maximum approved period for subletting of HDB flats and room to non-Malaysian and non-citizen subtenants, from three to 1.5 years.

Mr Khaw said the changes will not apply to Malaysian tenants as they face fewer integration challenges.

He said the public housing system needs to evolve with the times and a relook is necessary in the light of significant demographic and economic changes.

He said more will be done to reduce BTO flat prices relative to incomes, and to reduce the financial burden of housing on the young.

Mr Khaw said: "We have stopped BTO prices from rising by delinking them from resale prices. We can now pause and see what else we can do to bring BTO prices in non-mature estates to, say, around four years of salary as it was before the current property cycle started.

"We will do so partly through cooling measures to nudge the property market down; partly by seeing if an alternative housing option can be designed.

"One thing is clear. We are committed to restoring and maintaining the affordability of new HDB flats to the vast majority of first-timer Singaporean households. Their Singapore Dream of owning their own flats, like their parents', is safe. We will make sure of that."

There also has to be more options to help elderly Singaporeans unlock and monetise their HDB flats.

In the months ahead, the Ministry will initiate public discussions on housing policies to take in diverse views and to shape future housing policies.

- CNA/de

phantom_opera

08-03-13, 21:20

和今年1月相比，转售和非有地住宅的私宅价格，在上个月起了2.7%，大众私宅的平均尺价首次突破1000元。

新加坡房地产联合交易网（SRX）的最新数据显示，中档私宅（其他中央区，RCR）和大众私宅（中央区外，OCR）私宅的涨幅分别为3.5%和5.1%，平均尺价达到1272元和1046元。

当中，中央区外（OCR），也就是大众私宅平均尺价，更是首次突破1000元的心理阻力水平，达到1046元。

可是，核心中央区（CCR），也就是第9、10和11邮区等黄金地段的高档私宅价格却下跌4.7%，最新的平均尺价为1788元

=> OCR resale up 5.1% to 1046psf, CCR resale down 4.7% to 1788psf

dare2

08-03-13, 21:27

....even Mr B fly airplane liao.....the seletar airport is still going flat out to cut and paste.....take a break go see how Breitling pilots fly in sync in the sky at Sentosa tomorrow afternoon....
but all boats have been told to stay away from the area......missed the boat liao.....

seletar

09-03-13, 12:37

The Straits Times
http://www.straitstimes.com (http://www.straitstimes.com/)
Published on Mar 09, 2013

New HDB flats to become cheaper

Khaw vows to make them nearly 30% cheaper to keep homes affordable

By Rachel Chang

THE prices of new flats will become almost 30 per cent cheaper to keep the Singapore dream of home ownership alive, National Development Minister Khaw Boon Wan pledged yesterday.

The ambitious goal makes clear the Government's commitment to "restoring and maintaining" the affordability of flats for first-time home buyers, he told Parliament.

Hinting at a fundamental redesign of public housing, Mr Khaw said that he wants new flat prices in non-mature estates at around "four years of salary" - what they were before the property bull run of the last six years began.

That is, new homes in non-mature estates will be priced at four times the annual median income of flat applicants.

This would mean a sharp drop from current prices, which are about 5.5 years of salary.

Referring to young first-timers, the minister declared that "their Singapore dream of owning their own homes, like their parents', is safe".

He already broke with HDB convention in 2011 by delinking Build-to-Order (BTO) prices from the rising resale market when he took over the housing portfolio.

This meant that while the resale market has risen 12.5 per cent since, prices of new flats launched have stayed stable. Since 2007, when the current property upswing began, the resale price index has spiked 95.8 per cent.

Yesterday, Mr Khaw made clear that he would be going much further than price stabilisation.

Bringing down BTO prices in non-mature estates will be partly through market cooling measures, and "partly by seeing if an alternative housing option can be designed", he said.

He did not elaborate, but analysts said the remark portended major policy changes - perhaps shorter flat leases or different classes of new flats.

In a budget debate speech chock-full of policy announcements, Mr Khaw answered calls from MPs to meet the housing needs of groups that have been on the sidelines in the first half of his term. He had something for everyone, from singles and divorcees to second-timers and young couples waiting for their new flats to be built.

Fulfilling a promise Prime Minister Lee Hsien Loong made in last year's National Day Rally, he announced that singles aged 35 years old and above will be able to buy new two-room flats from July.

The first batch will likely be in Sengkang, but only those earning $5,000 and less a month will be eligible, he said, as they face the most financial difficulty in getting housing.

Lower-income families looking to buy their second new flat will now get double the chance: 30 per cent of two- and three-room flats in non-mature estates will now be for second-timers, up from 15 per cent. Of this 30 per cent, 5 per cent will be reserved for divorcees or the widowed who have young children.

The new scheme for young families waiting for their new flats to rent subsidised flats from the HDB in the interim will also now be extended to young, childless couples. SLP head of research Nicholas Mak said that Mr Khaw's plan to slash BTO prices would reverberate through the entire property market. Demand may drain from the resale market to the new, cheaper flats.

But with construction costs rising and curbs on foreign workers, he feared the Government might fail to meet its promised supply.

Teacher Lim Yan Han, 24, welcomed Mr Khaw's message but said the proof of the pudding was in the eating. She and her engineer boyfriend have failed in four ballots for new flats, three in mature estates, and one in non-mature. "It is already so competitive. I'm worried that lower prices will mean more people competing for flats."

[email protected]

seletar

09-03-13, 12:45

The Straits Times
http://www.straitstimes.com (http://www.straitstimes.com/)
Published on Mar 09, 2013

Back to basics for public housing

Past assumptions underpinning housing policies may no longer hold. For example, slowing economic growth means future Housing Board flat-owners may no longer benefit from large capital gains. An ageing population also means fewer young couples getting married and needing new homes. After 50 years, it's time to relook housing policies, said National Development Minister Khaw Boon Wan in Parliament yesterday, assuring Singaporeans that the Government will involve them in re-examining public housing policies. Here are excerpts of his speech to Parliament.

OUR public housing system needs to evolve with the times. Which elements in our current system remain relevant, which require strengthening, and which need overhaul? If some major changes are called for, how do we implement them without adversely affecting the vast majority of Singaporeans who own those valuable assets and are quite comfortable with the status quo?

It is important that in doing so, we do not forget the needs of the silent majority. We must be mindful not to throw the baby out with the bath water. We must implement these changes judiciously and with heart.

From MPs' speeches and other comments aired during Our Singapore Conversation, I distilled four issues worthy of deeper reflection.

First, what should be the purpose of building HDB flats? The HDB flat is first and foremost a home, where couples start their lives together. But it is also an asset, which they can use to build a better life in their prime, and provide security for their retirement needs.

In the early years of Singapore's independence, homelessness and squatter living were the norm. At that time, we were all first-time applicants of HDB flats. Having basic, no-frills, low-cost homes was top priority. As Singapore progressed from third world to the first, the quality of HDB flats improved dramatically and we have now become a nation of proud homeowners. The majority are HDB second-timers. HDB flats have become significant assets to most Singaporeans.

We enabled this transformation through several important housing policy changes. In 1971, we allowed HDB flats to be resold for a profit. Before that, flats could only be sold to HDB at pre-determined prices. In 1989, we allowed flat owners to retain their HDB flats even when they buy a private property. Before that, they would have to sell off their HDB flats.

In 1993, we allowed buyers to take loans based on the prevailing market value of the flat, which allowed sellers to maximise the value of their assets. Before that, housing loans were based on HDB's historical selling prices. In 2003, we allowed flat owners to sublet their flats. Before that, the underlying principle was full owner-occupation. These policy changes have benefited many Singaporeans. Many were able to upgrade their homes, and dramatically improved their quality of life. It has also allowed many to accumulate large nest eggs, to fund their retirement needs.

Looking ahead, as we may no longer get the same kind of returns from reselling an HDB flat as in the past, how will its role as an asset be affected? If it is likely to diminish, how should we make the adjustments? How will any such adjustments impact different groups of Singaporeans with different aspirations and needs?

Second, what kind of housing should the Government provide to support future needs? Over the years, we have widened the range of choices, in terms of flat types and designs, to meet a wide range of aspirations. Many are now clamouring for the HDB to return to basics and its original mission of helping Singaporeans own a basic home. But what does "returning to basics" mean?

Returning to basics?

DOES returning to basics mean that we should focus only on HDB flats? Where should we set the income ceiling for HDB flats? Should we lower it, raise it or remove it altogether? What about the upper middle class? Should we, for example, stop offering executive condominiums (ECs)?

Does returning to basics mean that we return to pre-2003 days of strict owner-occupation? How will this affect the many retirees who rely on the income from subletting or the younger homeowners who use it to help support their lifestyle needs?

Does returning to basics mean that we return to pre-1989 days when we require HDB flat owners to sell off their flats when they buy a private residential property? How will this affect the plans of many Singaporeans who aspire to live in a private condo and use their HDB flat for rental income?

Third, how do we ensure the affordability of new HDB flats for a new generation of newlyweds? Global liquidity and low interest rates since the global financial crisis of 2009 have caused house prices to appreciate sharply, more than income growth. Affordability has worsened.

Whilst high prices make homeowners happy, it has caused anxiety amongst young buyers as well as their parents. Some couples look to their parents for help, but this may be at the expense of their parents' retirement savings.

We will do more to reduce BTO (build-to-order) flat prices relative to incomes, and reduce the financial burden of housing on our young. One way is to increase housing grants for families with children to partly improve affordability and reward parenthood. However, even as we make new HDB flats cheaper, we must continue to encourage prudence and avoid over-spending on housing.

In the earlier days, a three-room flat was acceptable to many. Now, it is a four-room flat or even a five-room flat or EC. What can a young graduate couple in the workforce for two years reasonably aspire to? What about a lower-income household? Are these aspirations within their means? Will they get into trouble if individual circumstances change or when the economy heads south? As a government, how can we help meet newlyweds' aspirations, while also ensuring they make prudent and sustainable purchases?

Keeping flats affordable

FOURTH, how should public housing respond to the ageing of our population? When our population was young and incomes were rising across the board, public housing was an effective way of sharing the fruits of economic growth.

But as our population ages and economic growth moderates, we have to be much more proactive and creative in working out options to help elderly Singaporeans unlock and monetise their HDB flats. We have tinkered with the Lease Buyback Scheme, and introduced some right-sizing incentives. What else can we do?

Our public housing policies have been highly successful in enabling the vast majority of Singaporeans to own their homes. The opportunity to own homes has not been confined to those in the high or middle income groups. Low income Singaporeans too have benefited. This is quite unique in the world.

A relook is however necessary in the light of significant demographic and economic changes. The primary mission of HDB to offer an affordable flat for the majority of Singaporeans will remain unchanged. Fortunately this is within our control as we set BTO prices and HDB is the largest housing developer.

We have stopped BTO prices from rising by delinking them from resale prices. We can now pause and see what else we can do to bring BTO prices in non-mature estates to, say, around four years of salary as it was before the current property cycle started. We will do so partly through cooling measures to nudge the property market down; partly by seeing if an alternative housing option can be designed.

One thing is clear; we are committed to restoring and maintaining the affordability of new HDB flats to the vast majority of first-timer Singaporean households. Their Singapore Dream of owning their own flats, like their parents', is safe.

At the same time, with the ageing population and the bulk of the seniors' savings tied up in their HDB flats, we have to press on with more options for the seniors to unlock their assets.

We should organise several Our Singapore Conversation discussions to explore some of these issues with fellow Singaporeans. I invite concerned Singaporeans of all ages to mull over these issues with us. Share with us your worries, your fears, your hopes and your dreams. We hope to hear many views and ideas so as to better inform our housing policies.

Let us work on the challenges together and shape better housing policies for our future generations.

august

09-03-13, 14:17

this govt and khaw are behind the curve. People have been calling for such measures for yrs.

seletar

11-03-13, 19:16

http://news.asiaone.com/News/Latest%2BNews/Singapore/Story/A1Story20130310-407548.html

More flats set aside for divorcees, downgraders

http://news.asiaone.com/A1MEDIA/news/03Mar13/images/20130310.162236_sph_st_hdbshowflat.jpg

By Janice Heng
The Straits Times
Monday, Mar 11, 2013

SINGAPORE - Two groups are going to find it easier to get a new Build-to-Order flat from May: those who are downgrading and divorcees applying a second time to buy a flat from the HDB.

This follows a doubling in the quota of two-room and three-room flats in non-mature estates for the second-timers, from 15 per cent to 30 per cent.

In announcing the move on Friday, Minister for National Development Khaw Boon Wan said: "This will help second-timers needing to downgrade."

Of the quota, 5 percentage points will be reserved for divorcees or the widowed who have children younger than 16.

This will "almost guarantee" that they will be able to choose a two-room flat and "significantly increase" the chances of those who apply for a three-room flat, said Mr Khaw.

From this month, divorcees will also be allowed to get a flat more quickly.

They can apply for or own two separate subsidised flats three years after their divorce instead of having to wait five years.

The time bar does not apply if they are buying a new flat with a new spouse or their parents.

"This will help them move on with their lives, especially those with children," said the minister.

The move, he said, is in line with a suggestion from Mr Edwin Tong (Moulmein-Kallang GRC).

Mr Tong had earlier asked if the ministry could look at giving priority to divorced parents with custody of the children, either in the purchase or rental of flats, as "this is a very vulnerable group of persons".

The ministry on Friday announced another tweak to make it easier for divorcees.

From now, if one of them wants to buy a subsidised flat during the debarment period, he or she does not need to get the ex-spouse's permission as long as the buyer has legal custody of all the children, who must be younger than 18 at the time of the divorce.

Previously, the requirement was that the children must be younger than 16.

The changes come against a backdrop of a growing number of applications from second-timers that the Government has been trying to tackle.

Mr Khaw said the second-timer numbers doubled in the last two years to 30,000 in 2012.

As a result, the Government tripled the quota of BTO flats for them in non-mature estates last March to the current 15 per cent.

The move reduced the application rates "significantly" to about 10 applicants per unit, he added.

[email protected] ([email protected])

seletar

11-03-13, 19:26

http://business.asiaone.com/A1Business/News/Story/A1Story20130311-407696.html

Supply of rental flats to be raised to 60,000

http://business.asiaone.com/A1MEDIA/news/03Mar13/images/20130308.190852_hdb.jpg

Janice Heng
Singapolitics
Monday, Mar 11, 2013

SINGAPORE - The Government is raising the supply of rental flats further to 60,000, after already raising it to 50,000 last year, Senior Parliamentary Secretary for National Development Maliki Osman said on Monday during the debate on Budget 2013.

The new target is up from the Government's former promise to build 57,000 rental flats by 2015.

Responding to MPs' concerns, Dr Maliki said the public rental scheme has rules to help the vulnerable "while ensuring that we do not encourage imprudent behaviour or erode the work ethic." But in applying the rules, the Government will consider the merits of each case and exercise flexibility and compassion, he added.

Dr Maliki also noted that although market rents have risen significantly, the Government has not adjusted the public rental structure since 2006 and has no plans to do so.

As for MPs' calls to let more qualify for rental flats, Dr Maliki said the Government will continue to review their rules from time to time, and will be sympathetic in applying the rules.

For instance, though there is an income ceiling of $1,500 a month, the Government looks at each case and is prepared to offer rental flats to those in financial difficulties even if their income is above that level, he said.

Workers' Party MP Lee Li Lian (Punggol East) noted that there were 11,736 foreign spouses on Long Term Visit Passes here who are disqualified from getting rental flats, and that many such families are needy. She asked under what conditions rental flats have been given to Singapore citizen with foreign spouses.

To that, Dr Maliki said that only Singapore citizen households qualify because rental flats are heavily subsidised. "We recognise the needs of low-income citizens with foreign spouses, and do consider them on a case by case basis, but the priority goes to Singaporeans," he said.

seletar

11-03-13, 19:36

http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid={667705067-16521-9702115057}

Property worries keep STI subdued amid global rally

Straits Times
11 Mar 2013
By Goh Eng Yeow

THERE was none of the celebratory mood here that transfixed other major bourses as Wall Street hit record-high levels almost four years to the day after bottoming out on March 9, 2009.

While the Dow Jones Industrial Index went on a record-smashing streak, charging to ever-higher levels after crossing its 2007 all-time high on Tuesday last week, the benchmark Straits Times Index (STI) stayed a tad subdued, ending the week with only a 0.6 per cent rise to 3,289.53.

This marks a rare occasion where the local stock market is refusing to imbibe the intoxicating rallying spirits that appear to be taking hold of global bourses once more. Still, the subdued sentiment is understandable.

Just as other bourses such as Tokyo and Hong Kong were getting ready to party once again last Friday, property counters here were spooked by talks that the Government was planning yet another round of cooling measures for the private residential market.

It triggered sell-offs in stocks like property giant CapitaLand, which fell 2.95 per cent to $3.62 as it sank to its lowest levels in three months, and caused the STI to end in the red with a drop of 9.01 points, or 0.27 per cent.

These speculations, which relate to a possible slashing in the mortgage servicing ratio or the proportion of monthly income that a borrower spends to service his monthly mortgage instalments, are not new.

In fact, they had occasionally surfaced in the past two months since the Monetary Authority of Singapore in January cut the mortgage servicing ratios for Housing Board flats from 40 per cent to 35 per cent of a borrower's gross monthly income.

But traders were jittery that the rumours might have credence, since the Government took the market by surprise recently by imposing lending curbs on motor cars, capping such loans to a maximum of 60 per cent of a car's price and their tenures to within five years.

Nor is this their only headache about the property sector.

The market will also have to weigh the implications of National Development Minister Khaw Boon Wan's ambition to drive down the price of new HDB flats, even though he has not offered any details on his plan.

This is in view of the fact that the pool of HDB upgraders buying private condominiums may dry up if the resale HDB market is affected by the Government's move to bring down the prices of Build-to-Order flats.

Seen in a broader perspective, however, the cooling measures - whether they are taking place in the housing or the motor car market - can only be good for consumers in the longer term, as they help to defuse any speculative bubble that may be in the midst of forming here.

It is also worthwhile to note that even though Wall Street ended on a high note last Friday, the response to news of the stronger-than-expected number of 236,000 jobs created in the United States last month has been relatively muted.

One fear is that the improving job situation may be a sign that the world's No. 1 economy is on the mend, and force the US central bank to raise interest rates earlier than the envisaged 2014 deadline it had earlier set.

Given the close manner in which local interest rates shadow those in the US, any rates hike would be calamitous for the thousands of borrowers who may have to cough up extra cash to service their mortgages and car loans.

Better to be safe now than sorry later. True, the STI may not get anywhere near its October 2007 all-time high of 3,865 at the rate it stays dithering around the 3,300 resistance levels, but it may have less distance to fall if the party on Wall Street screeches to a halt.

[email protected] ([email protected])

seletar

15-03-13, 14:23

http://www.bluta.com.sg/blog/2013/02/45-foreigners-the-perfect-property-storm-for-our-banks-and-nation/

45% Foreigners – The Perfect Property Storm For Our Banks and Nation (http://www.bluta.com.sg/blog/2013/02/45-foreigners-the-perfect-property-storm-for-our-banks-and-nation/)

Posted by BLUTAdmin (http://www.bluta.com.sg/blog/author/admin/)
Categories: Singapore Property (http://www.bluta.com.sg/blog/category/singapore-property/)
Feb 062013

http://www.bluta.com.sg/blog/wp-content/uploads/2013/02/Moulmein-Night.png (http://www.bluta.com.sg/blog/wp-content/uploads/2013/02/Moulmein-Night.png)

In our earlier commentary on the 6.9 million Population White Paper (http://www.bluta.com.sg/blog/2013/02/6-9-million-population-part-2-quantitative-projections/), we mentioned that a “projection” of 45% foreigner mix could be a disaster waiting to happen. In fact, we are actually more worried about that “45% will be foreigners” statement than the 6.9 million population. Even with the 55% Singaporeans in 2030, there’s also the doubt that all of them will be ”core” Singaporeans that have strong, cultivated ties to Singapore.

As many people have pointed out, they are concerned with the dilution of “true-blue Singaporeans” and from a Singapore property perspective, we have good reasons to be concerned. As many have cautioned, foreigners (and even newly minted citizens) do not have strong ties to Singapore and our community; As foreigners, Singapore is not their home. Naturally, their presence will be more transient; they may leave as they please.

So, let’s start off with the assumptions we’re making. We’re postulating that the foreigner mix will be similar to the present, with proportionate numbers of Permanent Residents (PRs), work permit and employment pass holders, domestic helpers and other smaller groups, such as students. Even if the mix were slightly different, we’re assuming that it would become more heavily skewed to PRs and employment pass holders. This is precisely the group that would have the financial resources to participate in the Singapore property market.

With a greater overall percentage of foreigners compared to the present, it can be deduced that the proportion of Singapore property in foreign hands (including perhaps, public housing owned by PRs, not that we agree (http://www.bluta.com.sg/blog/2012/11/bluta-on-housing-part-2/)) will be higher too. That means, inevitably, a higher percentage of foreigners will be loaning from our banks. Just as it is now, most property owners – both foreign and local – will be leveraged when it comes to their property purchase. What that means is they will be owing Singaporean banks up to 80% of their property price, in addition to interest.

One wonders how leveraged our local banks are as well; what is their reserve compared to the amount they have given out in housing loans? Let’s take a look at it in our scenario below.

So, that’s how our scenario starts off. We have the 45% foreigner mix, in a total population of 6.9 million, as “projected” by the White Paper. Let’s assume 700,000 housing units are sufficient for this population, and everyone has found something they like, be it private or public property. We go about our lives, working to grow our GDP and pay off our 30-year housing loans.

But we aren’t doing so in a vacuum, are we? The thing about global crises is that they’re kind of like a storm wave crashing over a boat. If the boat is stable enough, and isn’t over-leveraged by a heavy cargo on the top deck, it can probably withstand smaller waves indefinitely. But financial systems these days are trickier than boats. All it takes is that one big wave, hitting at just the right moment; perhaps just when the cargo was skewed 45% off to one side by a previous wave…

A global crisis severe enough to affect multinational companies and their foreign employees could see those foreigners leaving our shores in droves. It will be akin to a sudden vacuum, which is always followed by an implosion, whether literally or figuratively. Such a crisis will be bad enough that some maximally leveraged foreigners will just leave, debt be damned. Now, we are not suggesting that foreigners in Singapore will fail to honour their loans, we simply wish to point out the reality that such an option is clearly available to them with little impact once they have left Singapore for good. This isn’t without precedent; in Dhubai, suddenly bankrupt expatriates abandoned exotic supercars by the roadside in their panicked exodus, to evade a mountain of lavish credit.

While it is doubtful that Singapore will throw them in jail for going into negative equity, there will be a few that will just throw in the towel and run back home. It is doubtful that our banks will be able to pursue the debt to foreign shores.

In any economic crisis when property owners fail to service their mortgages, banks would, based on the terms and conditions of the applicable mortgages, pursue against these property owners. At times, these property owners could be made to pay up or made bankrupt. What happens if the property owner is a foreigner? Will the bank be able to go after that individual if he or she has fled the country? How much longer will it take for the bank to process a mortgagee sale, for example, if the person is no longer in the country? We would imagine the process to be difficult and long drawn simply because the bank needs to prove that it has tried its best in locating the owner.

Of course, with more properties being occupied by foreigners going forward, the risks are also not coming solely from the foreign home owners, but also the tenants. In a bad economy when foreigners inevitably leave, a higher percentage of foreigners will directly translate to a larger property glut with more unoccupied units, bringing unprecedented pressure on local property prices.

As with the worst of storms, this will feed back into a new cycle of defaulters and bankrupts, and even more foreigners leaving. The higher percentage of foreigners projected in 2030 amplifies this effect. Currently, two-thirds or more of the population is made of Singaporeans, so the risk of such a scenario is tempered by the majority of property owners and occupiers being Singaporeans. If there is indeed a near-future economic crisis, our banks are probably quite prepared and none of our local banks are likely to be too adversely affected.

But with a 45% foreigner mix, our banks take on higher risks due to the change in population composition. During the last two economic crises in 1980s and 1990s, property prices dropped by more than 40%; at that time, the foreigners only made up 14% and 25% of the total population, respectively. Is our system prepared for such a shock?

That brings us back to our question: what kind of reserve do our banks have? Well, every bank maintains a capital adequacy ratio* (CAR), which is set by the Monetary Authority of Singapore (MAS) to ensure that banks have enough capital to deal with major economic crises.

The banks need to ensure that its capital adequacy ratio sufficient. If MAS’ current CAR was derived with data from the crisis of the 80s or 90s, when the ratio of foreigners to Singaporeans was much lower, it may no longer be relevant. A higher percentage of foreigners in 2030 (from 14% to 25% to 45%), implies more foreigners owning properties; this will likely render the CAR requirement outdated. Thus the projected 6.9 million people, of which 45% are foreigners, will adversely affect property risk in Singapore. If not sufficiently stringent with the CAR, our banks may well be under a lot more risk than previously experienced. At that point Singapore herself will be at risk, as we ponder bailouts of our local banks.

Is that 1% to 2% growth worth the risking the nation in a perfect storm?

seletar

15-03-13, 14:32

http://www.reuters.com/article/2013/03/14/us-virus-saudi-who-idUSBRE92B15S20130314

WHO confirms 15th case of deadly new virus in Saudi Arabia

By Kate Kelland
LONDON | Thu Mar 14, 2013 7:00am EDT

(Reuters) - A Saudi man infected with a deadly new virus from the same family as SARS has died, becoming the ninth patient in the world to be killed the disease which has so far infected 15, the World Health Organization said on Tuesday.

The 39-year-old developed symptoms of the novel coronavirus (NCoV) on February 24 and died on March 2, several days after being hospitalized, the WHO said in a disease outbreak update.

NCoV is from the same family of viruses as those that cause common colds and the one that caused the deadly outbreak of Severe Acute Respiratory Syndrome (SARS) that first emerged in Asia in 2003. The new virus is not the same as SARS, but similar to it and also to other coronaviruses found in bats.

The WHO first issued an international alert in September after the virus infected a Qatari man in Britain who had recently been in Saudi Arabia (http://www.reuters.com/places/saudi-arabia).

Symptoms of NCoV include severe respiratory illness, fever, coughing and breathing difficulties.

"Preliminary investigation indicated that the (latest Saudi)patient had no contact with previously reported cases of NCoV infection," the WHO said. "Other potential exposures are under investigation."

Nine of the 15 people confirmed to have been infected with NCoV have died. Most cases have been in the Middle East or in patients who had recently traveled there.

Research by scientists in Europe has found that NCoV is well adapted to infecting humans and may be treatable with medicines similar to the ones used for SARS, which killed a tenth of the 8,000 people it infected.

The Geneva-based WHO said it was monitoring the situation closely and urged its member states to continue surveillance for severe acute respiratory infections and to carefully review any unusual patterns.

"WHO is currently working with international experts and countries where cases have been reported to assess the situation and review recommendations for surveillance and monitoring," it said, adding that national authorities should "promptly assess and notify" it of any new NCoV cases.

seletar

15-03-13, 14:38

http://www.channelnewsasia.com/stories/afp_world_business/view/1260082/1/.html

Leaders wrestle with austerity as EU jobless fears rise

Channel News Asia
Posted: 15 March 2013 0532 hrs

BRUSSELS: European Union leaders on Thursday wrestled with German demands for strict austerity and a French-Italian push for growth-friendly spending at a summit coloured by fears that rampant unemployment is destroying the bloc.

As thousands protested over European jobless lines stretching to 26 million, outgoing Italian premier Mario Monti urged his peers at an EU summit to let Italy, and other countries facing public finance pressures, spend to create more jobs.

Failing that, he warned, there would be a voter backlash such as the one he suffered last month.

A professional EU politician of many years standing in Brussels, Monti said his caretaker Italian government had done everything asked of it by the EU, but that "public support for the reforms, and worse, for the European Union, is dramatically declining."

Flexibility as opposed to rigid austerity "would be the best message to counter the mounting wave of populism and disaffection with the EU," he underlined.

A brash anti-austerity party won a stunning 25 per cent of the vote in last month's Italian elections, a warning for German Chancellor Angela Merkel who faces a general election in September.

However, Merkel's polling position has rarely been stronger, and at the close of the first session of summit talks on the economy, she said the benefit of Monti's reforms would be seen in the fullness of time.

EU President Herman Van Rompuy said the leaders meeting in Brussels had "reconfirmed our overall economic strategy."

Amid heavy security, the summit coincided with an anti-austerity rally nearby that organisers said drew 15,000 demonstrators, during which dozens were arrested after breaking into a building adjacent to the venue.

The 17 eurozone leaders stayed on for their own talks, joined by Dutch Finance Minister Jeroen Dijsselbloem who chairs the Eurogroup of counterparts due to meet later on Friday to try and fix a multi-billion-euro bailout for Cyprus -- the fifth for an EU state since Greece first needed rescuing three years ago.

French President Francois Hollande said the "only priority" leaders had to face was finding fresh ways to boost growth and get people back working.

The Socialist leader has admitted his government will not be able to cut its public deficit to the EU limit of 3.0 per cent of gross domestic product this year, coming in instead at 3.7 per cent -- which requires another year of grace from Brussels.

This, Paris is expected to get.

"It's not black and white," said Van Rompuy of the economic challenges ahead. "Nuances matter," he added, citing "many 'shades of grey'."

Youth unemployment is running at more than 50 per cent in Greece and Spain, and Luxembourg Prime Minister Jean-Claude Juncker said Europe had "to explain our policies better."

He warned: "I can't rule out us running the risk of a social revolution or rebellion."

Among the protesters, Mads Hadberg of Denmark, a 25-year-old student, asked: "Why should the people be paying for the crisis the banks created... People are losing jobs, health benefits, pensions -- and the rich are getting richer."

Against this backdrop, hopes rose in Cyprus that a deal on its long-delayed financial rescue could be sealed come Friday's finance talks, which were also to be attended by International Monetary Fund managing director Christine Lagarde.

"I do hope that by tomorrow we can negotiate and find a solution," said new Cyprus President Nicos Anastasiades.

The two-day Eu summit meeting opened with Hollande calling on his fellow leaders to lift an arms embargo on Syria, in order to help insurgents fighting the regime of President Bashar al-Assad.

France is ready to "take its responsibilities" and supply weapons to Syria's rebels if it cannot convince its European partners to lift an arms embargo, Hollande said. The issue is to be tackled by leaders on Friday morning.

Hollande held head-to-head talks on the question with British Prime Minister David Cameron beforehand, vowing: "We are ready to support the rebellion."

At the Friday morning session, heads of state and government will also discuss relations with key partner Russia.

- AFP/jc

seletar

15-03-13, 14:41

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1260155/1/.html

Retail sales fall 2.0% on-year in January 2013

Channel News Asia
Posted: 15 March 2013 1340 hrs

SINGAPORE: Singapore's retail sales fell 2.0 per cent on-year in January 2013, due mainly to sharply lower retail sales from food and beverage outlets and department stores.

According to the Department of Statistics (DOS), this was a result of the Chinese New Year holidays occurring in January 2012, compared to February this year.

Excluding motor vehicles, the Department of Statistics (DOS) said retail sales went down by 4.9 per cent compared to a year ago.

Retail sales of supermarkets, apparel and footwear, recreational goods, telecommunications products and computers, watches and jewellery and provision and sundry shops also registered declines of between 3.2 per cent and 8.7 per cent.

In contrast, retailers of motor vehicles recorded a 10.5 per cent increase in sales, while furniture and household equipment retailers reported a 6.8 per cent sales growth.

In the food and beverage services sector, retail sales dipped 4.9 per cent on-year in January.

In particular, receipts of restaurants decreased 11.1 per cent.

Compared to December 2012, DOS said overall retail sales declined 1.4 per cent in January 2013.

- CNA/xq

seletar

15-03-13, 14:47

http://www.bloomberg.com/news/2013-03-15/singapore-february-home-sales-drop-65-after-government-measures.html

Singapore’s February Home Sales Decline to 14-Month Low on Curbs

Bloomberg.com
By Pooja Thakur & Klaus Wille - Mar 15, 2013 1:23 PM GMT+0800

Singapore (http://topics.bloomberg.com/singapore/)’s home sales plunged 65 percent to a 14-month low in February after the government introduced its seventh round of cooling measures to cool record home prices.

Home sales dropped to 708 units in February from a revised 2,016 units in January, according to data released by the Urban Redevelopment Authority (http://topics.bloomberg.com/urban-redevelopment-authority/) today. That’s the smallest number of residences sold since December 2011, when sales declined to a two-year low of 632 units.

Singapore home prices (http://www.bloomberg.com/quote/URPIPRCA:IND) reached a record in the fourth quarter amid low interest rates (http://topics.bloomberg.com/interest-rates/), raising concerns of a housing bubble and prompting the government to widen a four-year campaign to curb speculation prices in Asia (http://topics.bloomberg.com/asia/)’s second-most expensive housing market. Knight Frank Pte cut its estimates for new home sales for 2013 by 20 percent and expects annual sales to range between 12,000 and 14,000 units.

“The government’s measures are starting to take effect,”said Vijay Natarajan, a Singapore-based analyst at UOB-Kay Hian Pte. “In addition, fewer units were offered because of the Chinese New Year. Over the coming months, I expect volumes to decline further.”

The city’s businesses were shut on Feb. 11 and Feb. 12 for the Chinese New Year holiday, limiting sales opportunities over an extended weekend.

Home sales reached 22,699 units in 2012, according to calculation by Bloomberg News (http://topics.bloomberg.com/bloomberg-news/) based on the government data, which dates back to 1996.

Q Bay Residences in the city’s northeast, developed by Far East Organization and Fraser & Neave Ltd.’s property unit, sold 74 homes last month, while buyers bought 84 units at Topiary in north-central Singapore, according to the data (http://www.ura.gov.sg/realEstateIIWeb/price/submitSearch.action).

Property Measures

The latest measures included an increase in the stamp duty for homebuyers by between 5 percentage points and 7 percentage points, with permanent residents paying taxes when they buy their first home. Singaporeans will also have the levy starting with their second purchase.

Singapore also plans to raise taxes for luxury homeowners and investment properties. The higher tax will apply to the top 1 percent of homeowners who live in their own residences, or 12,000 properties, Singapore Finance Minister Tharman Shanmugaratnam (http://topics.bloomberg.com/tharman-shanmugaratnam/) said in his budget speech on Feb. 25. He said in a Feb. 28 interview the property market is still “in a wrong part of the cycle.”

Loan Limits

The government also tightened loan-to-value limits for buyers seeking a second mortgage, referring to the amount they are allowed to borrow relative to the value of their properties. The cash down payment will also rise to 25 percent from 10 percent starting from the second loan, it said.

Singapore has been attempting to rein in prices since 2009, when the government barred interest-only loans for some housing projects and stopped allowing developers to absorb interest payments for apartments still being built.

Earlier steps taken by Singapore to ease the property market (http://topics.bloomberg.com/property-market/) included imposing additional taxes on foreigners and companies buying properties, and moving to curb the trend of so-called shoebox apartments. In October, it restricted home-loan maturities to 35 years and required tighter loan-to-value limits for loans exceeding 30 years.

To contact the reporter on this story: Pooja Thakur in Singapore at [email protected] ([email protected])

seletar

15-03-13, 14:53

http://www.bluta.com.sg/blog/2013/03/minister-khaw-tackles-affordability-back-to-basics/

Minister Khaw Tackles Affordability – Back to Basics? (http://www.bluta.com.sg/blog/2013/03/minister-khaw-tackles-affordability-back-to-basics/)

Posted by BLUTAdmin (http://www.bluta.com.sg/blog/author/admin/)
Categories: Singapore Property (http://www.bluta.com.sg/blog/category/singapore-property/)
Mar 15 2013

http://www.bluta.com.sg/blog/wp-content/uploads/2013/03/HDB-Embossed-Logo-300x300.png (http://www.bluta.com.sg/blog/wp-content/uploads/2013/03/HDB-Embossed-Logo.png)

Just a few days ago, Minister for National Development Khaw Boon Wan highlighted calls for the Housing and Development Board (HDB) to return to basics and the original mission of providing affordable housing for Singaporeans. This prompted him to define what “returning to basics” means. He mentioned that the HDB’s primary mission (to provide affordable public housing) remains unchanged, and a potential target could be an affordability ratio of 4 in non-mature estates. In other words, BTO prices of such flats would be four times median annual income, compared to the current nine or higher.

But how does that compare to the yesteryears? Some comparisons have used graduates in the Seventies, who were earning about $1,000 a month, when new HDB flats cost $17,000, $20,000 and $35,000 for three, four and five-room flats respectively. That placed a five-room flat nicely under an affordability ratio of three.

Likewise in the Nineties, fresh graduates were earning $2,000 a month, with a new five-room going for $70,000, so the affordability ratio was still under three.

In contrast, a fresh graduate earns $2,678 a month on average, which is a real stretch to pay for current new HDBs that cost $300,000 or $380,000.

However, one must remember that a graduate in the Seventies was quite a rare animal, and $1,000 a month was considered a handsome some in those days. Even in the Nineties, graduates were quite uncommon, so a $2,000 starting pay was considered quite high.

In these highly-educated days, graduates are the norm, and the $2,678 monthly salary is reflective of a much more average qualification than the Seventies or Nineties. In light of this, we feel that an affordability ratio of four, which roughly translates to about $130,000, is a good target.

However, we also suspect that this target number will be for a four or even three-room HDB flat, and not the five room benchmark of the past. Of course, we could be wrong, and if Minister Khaw guns for the $130,000 five room flat, we would be highly impress with his resolve. That would undoubtedly have a positive effect on the resulting affordability of the older resale flats. We look forward to seeing innovative and fresh ideas coming from MND to address this issue.

It remains to be seen what Minister Khaw has up his sleeve in order to make this goal a reality, however. Stay tuned for our follow-up article, where we explore the many options he may take to bring affordability back to the HDB market.

seletar

18-03-13, 11:47

http://www.bloomberg.com/news/2013-03-17/europe-braces-for-renewed-turmoil-as-cyprus-deposit-levy-at-risk.html

Europe Braces for Fresh Turmoil With Cyprus Deposit Levy

Bloomberg.com
By Patrick Donahue - Mar 18, 2013 9:40 AM GMT+0800

Europe (http://topics.bloomberg.com/europe/) braced for renewed turmoil as outrage in Cyprus over an unprecedented levy on bank deposits (http://topics.bloomberg.com/bank-deposits/) threatened to derail the nation’s bailout. The euro tumbled.

Cypriot President Nicos Anastasiades, who bowed to demands by euro-area finance ministers to raise 5.8 billion euros ($7.6 billion) by taking a piece of every bank account in Cyprus, appealed to lawmakers in Nicosia to ratify the levy today. The vote was delayed from yesterday over the opposition of the European Central Bank (http://topics.bloomberg.com/european-central-bank/) amid talks to restructure the levy.

While Cyprus accounts for less than half a percent of the 17-nation euro economy, the raid on bank accounts risks triggering new convulsions in the financial crisis that began in 2009 in Greece (http://topics.bloomberg.com/greece/). Moody’s Investors Service said that the move is a significant step toward limiting support for bank creditors across Europe and shows that policy makers will risk financial market disruptions to avoid sovereign defaults.

The tax is “a worrying precedent with potentially systemic consequences if depositors in other periphery countries fear a similar treatment in the future,” Joachim Fels (http://topics.bloomberg.com/joachim-fels/), chief economist at Morgan Stanley in London (http://topics.bloomberg.com/london/), wrote in a client note.

Scenes of Cypriots lining up at cash machines raised the specter of capital flight elsewhere and threatened to disrupt a market calm since the ECB’s pledge in September to backstop troubled nations’ debt. With no government in Italy (http://topics.bloomberg.com/italy/), Spain (http://topics.bloomberg.com/spain/) in the throes of a political scandal and Greece struggling to meet the terms of its own bailout, more turmoil could hamper efforts to end the crisis.

‘Sell Euro’

The euro fell below $1.30, sliding 1.4 percent to $1.2900 at 10:30 a.m. in Tokyo (http://topics.bloomberg.com/tokyo/). Anticipating gains in haven markets, Bill Gross (http://topics.bloomberg.com/bill-gross/), who runs the world’s biggest bond fund at Pacific Investment Management Co. in Newport Beach (http://topics.bloomberg.com/newport-beach/), California (http://topics.bloomberg.com/california/), said on Twitter that the concern in Cyprus “moves risk-on trade to backseat.” He added: “Sell euro as well.”

Anastasiades exhorted political factions to support the deposit levy, which he pledged is a one-off measure that will avert a collapse of the financial system that in turn would have led to the country’s exit from the euro.

“A bank collapse would cause indescribable misery,” Anastasiades said in the televised address. He called the crisis the country’s worst moment since the 1974 Turkish invasion that has left the country divided.

Depositor Swap

In a bid to ease a run on banks, depositors who keep their account for two years will receive securities linked to future revenue from the country’s gas reserves, the president said.

He said he would also seek to soften the impact on savers. The potential changes include taxing deposits less than 100,000 euros at a 3 percent rate, while setting the levy at 10 percent between 100,000 euros and 500,000 euros and at 12 percent for deposits greater than that, Antenna TV reported, without saying how it got the information.

The bank tax was the alternative to imposing losses on investors in a so-called bail-in, a step opposed by the Cypriot government, the European Commission and the ECB, German Finance Minister Wolfgang Schaeuble (http://topics.bloomberg.com/wolfgang-schaeuble/) said on ARD television last night.

“It’s up to them to explain it to the Cypriot people,” Schaeuble said. “Clearly, the taxpayer should not be asked” to rescue banks from insolvency, he said, adding that Cyprus faced a “very difficult time” unless it accepts the tax.

Smaller Bailout

The levy -- as of now 6.75 percent of all deposits up to 100,000 euros and 9.9 percent above that -- whittles the euro- area’s bailout of Cyprus to 10 billion euros, down from an original figure of about 17 billion euros, near the size of the nation’s 18 billion-euro economy.

Cyprus is considering changing the structure of the taxes to charge big depositors more and small account-holders less, a a European official said. The European Commission, the IMF and the ECB would support that as long as the amount raised stayed the same, the official said.

Euro finance ministers reached agreement early on March 16 after 10 hours of talks. Cypriots awoke to find bank transfers already frozen as the government prepared to impose the tax before banks reopen tomorrow. Today’s bank holiday in Cyprus may be extended by at least one day, state-run broadcaster CYBC reported, without saying where it got the information.

ECB Pressure

Anastasiades, whose minority government took office less than three weeks ago, said the ECB would have stopped providing liquidity to one of the country’s banks on tomorrow, leading to its collapse, he said.

The president will meet with lawmakers today before parliament’s session on the measure begins at 4 p.m. His Disy party holds 20 seats in the 56-seat legislature. The third- biggest faction, Diko, which supported him in his February election, holds eight seats. Cyprus’s communist Akel party, with 19 seats, plans to vote no.

Afxentis Afxentiou, the governor of Central Bank of Cyprus (http://www.bloomberg.com/quote/CBC:CY) from 1982 until 2002, told the state-run broadcaster CYBC that failure to enact the legislation “opens the road to chaos.”

“Cyprus will turn into Libya (http://topics.bloomberg.com/libya/),” Afxentiou said. “Even with the pain, we need to follow a normal course, with hope we’ll see better days.”

Jeroen Dijsselbloem of the Netherlands, who leads the group of euro-area finance ministers, sought to highlight the rescue package’s “unique measures” that address the “exceptional nature” of Cyprus. Its banking system’s assets are about five times the size of the economy. Instead of targeting the country’s wealthiest depositors, which include Russian billionaires, the tax also stings ordinary savers.

“As it is a contribution to the financial stability of Cyprus, it seems just to ask a contribution of all deposit holders,” Dijsselbloem told reporters.

‘Ominous’ Sign

Barclays Plc (BARC) (http://www.bloomberg.com/quote/BARC:LN) said in a report yesterday that the deposit levy is the latest erosion of bondholder protection at European banks and an “ominous” sign of how bailouts are being handled.

The ECB’s pledge to buy bonds should prevail over market panic, though the tax on deposits brings the euro area into “uncharted territory again,” Holger Schmieding (http://topics.bloomberg.com/holger-schmieding/), chief economist at Berenberg Bank in London, wrote in a note.

“Given the fragile state of the banking systems, especially in Greece and Spain, anything that can impede the needed rebuilding of confidence in these banking systems can potentially cause financial and economic damage,” he said.

Cyprus also agreed to step up asset sales, make further budget cuts and increase its corporate tax. Russia (http://topics.bloomberg.com/russia/), whose banks have loaned as much as $40 billion to Cypriot companies of Russian origin, will ease terms on its existing loans to Cyprus as the rescue unfolds, according to the plan. Cyprus’s finance minister is scheduled to fly to Moscow on March 20.

Public Opposition

In Cyprus, where a poll showed 71 percent of Cypriots said parliament should reject the levy, the immediate effects were on display. Many cash machines ran out of money, including cooperative bank ATMs, Erotokritos Chlorakiotis, the general manager of the Cooperative Central Bank (http://topics.bloomberg.com/central-bank/), told CYBC.

A man in the coastal city of Limassol drove a bulldozer into a bank branch to protest the levy, CYBC reported. At a cooperative-bank branch in the capital Nicosia, a sign informed customers that it was shut on instructions from the Central Bank of Cyprus. Nicos Nicolaou, 57, said he hoped his deposits would not be affected.

“All my life I never had deposits in banks because I didn’t trust them,” he said. “I only worked with co-ops.”

Andreas Andreou, a 48-year-old public servant, said he felt betrayed by Anastasiades’s concession.

“We voted for him to save us and instead he’s disappointed us,” Andreou said.

To contact the reporter on this story: Patrick Donahue in Berlin at [email protected] ([email protected])

seletar

18-03-13, 11:52

http://business.asiaone.com/A1Business/Property/News/Story/A1Story20130315-408999.html

Errant real estate agent fined $10,000, suspended 6 months

AsiaOne
Friday, Mar 15, 2013

SINGAPORE - The Disciplinary Committee (DC') formed by the Council for Estate Agencies (CEA) has concluded the disciplinary proceedings against salesperson, Chua Cheng Thian, Benny on Feb 26.

The DC convicted Chua of three charges for breaching the Code of Ethics and Professional Client Care in handling the property transaction for his clients. Chua was sentenced to suspension of six months and an aggregate financial penalty of $10,000. Fixed costs of $1,000 were awarded to CEA.

Under CEA's disciplinary framework, salespersons who breach the Code of Ethics and Professional Client Care may face disciplinary action. The DC may, upon determination of the breach, revoke or suspend his registration and/or impose a financial penalty of up to $75,000 or reprimand the salesperson.

Chua, 54, is a registered salesperson of ERA Realty Network Pte Ltd and has been practising as a salesperson for about 17 years.

He was appointed by his clients as their salesperson to sell their property on an exclusive basis. It was agreed that a commission of 1 per cent of the selling price (exclusive of GST) would be payable by the clients on a successful sale, within the agreed period.

Chua advertised and marketed the property, contrary to his clients' best interest, through his understudy salesperson on a 'Buyer only' (or no co-broke) basis. He also stated a wrong block number on the advertisement to sieve out unrepresented buyers from salespersons. Further, he did not disclose to his clients that he had a personal interest, by way of overrider, in having the property sold to his understudy's clients.

The 3 charges filed against Chua, on which he was convicted:

a. Failure to disclose potential conflicts of interest - The DC imposed a financial penalty of $4,000 and suspended him as a salesperson for a period of six months. Salespersons have a duty to avoid any potential conflicts of interests that may not be in the best interests of their clients. Chua was representing his client to sell their property and he has to act in their interest by considering all potential buyers and obtaining the best sale price for his client's property.

However, he had a potential conflict of interest in representing the sellers as the salesperson but had an understudy salesperson who was representing the buyers. Chua was entitled to 6 per cent of the commission paid by the buyer if the property was sold to the buyer represented by his understudy salesperson. Chua therefore had a personal interest if the property was sold to the buyer represented by his understudy and had failed to declare this potential conflict of interest to his clients.

b. Failure to act in the best interest of his clients - The DC imposed a financial penalty of $4,000 and suspended him as a salesperson for a period of six months. The intent of Chua's advertisements, with the words 'Buyer only' indicated, was to target and limit exposure to only buyers and such basis of advertisement and marketing was not in the sellers' interest as salespersons (who were representing potential buyers) were not entertained and thus the scope of exposure of the property in the market was limited.

c. Placing inaccurate advertisement - The DC imposed a financial penalty of $2,000 and suspended him as a salesperson for a period of three months. All advertisements placed by salespersons must not cause or allow inaccurate, false or misleading offer, statement, representation, claim or information. Chua had indicated a wrong block number in the advertisement. Although the sellers highlighted to Chua that the wrong block number was indicated on the advertisement, the error was not rectified in a subsequent advertisement.

In total, the financial penalty imposed on Chua in reference to the three charges is $10,000. The suspension orders for all 3 charges were ordered to run concurrently with effect from March 15. In addition, the DC has ordered Chua to pay CEA costs of $1,000.

Consumers are advised to use CEA's Public Register at www.cea.gov.sg (http://www.cea.gov.sg) to check the registration details of the salesperson before engaging his or her services. Those interested can find more consumer information at CEA's Consumer Resource Centre at http://www.cea.gov.sg/cea/content/ consumer/consumerresources.html.

seletar

18-03-13, 11:55

http://www.tremeritus.com/2013/03/18/dr-ng-bombarded-by-bread-butter-issues-even-from-teenagers/

Dr Ng bombarded by bread & butter issues even from teenagers (http://www.tremeritus.com/2013/03/18/dr-ng-bombarded-by-bread-butter-issues-even-from-teenagers/)

March 18th, 2013

During a Singapore Conversation held yesterday (16 Mar) at a youth forum in Toa Payoh Library, even teenagers are worried about bread-and-butter issues.

They posed many questions on mature issues such as job competitions, housing costs and maternity leave for Minister Ng Eng Hen to answer.

When Dr Ng told the youth that their generation would all be able to afford a 4-room HDB flat, Louis Low, 17, stood up to rebut the Minister.

Louis said he comes from a poorer family. His father, a cleaner at a hawker centre, only earns about $700 a month while his mother, a retail assistant, earns about $1,700.

Louis who will be going to Singapore Poly this year, said, “What if I don’t do well in my studies and become like my father? I don’t dare to say that I can afford a 4-rm flat. It’ll be worse if I’m also trying to start a family.”

Another student said, “I was watching the news and heard that housing prices are soaring. It’s quite scary.”

Dr Ng then repeated what Mr Khaw told the Parliament in recent week that the Govt will be trying to lower the HDB BTO flat prices in non-mature estates to 4 times of the annual median income of flat applicants.

Looking at a typical BTO launch last year [Link (http://www101.hdb.gov.sg/hdbvsf/eampu07p.nsf/0/12JULBTOPG_page/$file/12JULBTOPG_about1.htm?open&ft=bto)], the monthly median income of applicants for 4-room flats in Punggol is listed as $4,000 while a typical selling price for a 4-room unit is listed as $315,000. The price to annual median income ratio in this case works out to be 6.6. By World Bank standard of 5.0, this is considered not affordable.

However, if the Govt indeed can lower the 4-room BTO flat price to a more affordable $192,000 (i.e, 4 times of annual median income of applicants), that would be most welcome by new home buyers. In this case we are talking about 64% drop from current typical price of $315,000 for a 4-room flat. That’s a lot of money for the Govt to “lose”, by the way.

Back to the forum, the young participants also highlighted that employers prefer to hire foreign workers instead of locals these days to lower costs. Edric Wong, 14, said, “Most of the complaints are aimed at foreign expats competing for high-income jobs.”

A reporter asked the Minister is he was surprised that even teenagers were talking about adult issues.

Dr Ng laughed, “I guess Singaporeans are very serious, or maybe just this crowd is very serious, I don’t know.”

seletar

18-03-13, 11:57

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1260678/1/.html

S'pore's NODX down 30.6% on-year in Feb 2013

Channel News Asia
Posted: 18 March 2013 0900 hrs

SINGAPORE: Singapore's non-oil domestic exports declined by 30.6 per cent in February 2013 on-year, compared to the 0.4 per cent increase in the previous month.

Trade agency International Enterprise Singapore, said this is due to a contraction in both electronic and non-electronic exports.

Exports to all of the top 10 markets, except Taiwan, decreased in February.

The top three contributors to the export contraction were the European Union, the US and Hong Kong.

On a month-on-month basis, exports decreased by 2.4 per cent in February, following the previous month's 1.8 per cent decline.

On a year-on-year basis, total trade contracted by 17.3 per cent in February 2013, compared to the 1.4 per cent rise in the previous month.

-CNA/ac

seletar

18-03-13, 12:07

http://sbr.com.sg/economy/news/singapores-nodx-dropped-306-in-february

Singapore Business Review
ECONOMY | Staff Reporter, Singapore
Published: 18 Mar 2013

Singapore's NODX dropped 30.6% in February

Blame it on weak electronic segment.

According to a release, on a y-o-y basis, NODX contracted by 30.6 per cent in February 2013, compared to the marginal growth of 0.4 per cent in the previous month. This is due to the due a contraction in both electronic and non-electronic NODX.

On a 3-month moving average (3MMA) y-o-y basis, NODX declined by 16.3 per cent in February 2013, following the 6.5 per cent contraction in the previous month.

On a month-on-month seasonally adjusted (m-o-m SA) basis, NODX decreased by 2.4 per cent in February 2013, following the previous month’s 1.8 per cent decline, due to a contraction in non-electronic NODX which outweighed an expansion in electronic NODX. On a SA basis, the level of NODX reached S$13.2 billion in February 2013, lower than the S$13.5 billion registered in the previous month.

On a SA basis, non-oil retained imports of intermediate goods2 (NORI) grew by S$0.1 billion from S$5.4 billion in the previous month to reach S$5.5 billion in February 2013.

Electronic products. On a y-o-y basis, electronic NODX decreased by 27.4 per cent in February 2013, after the 5.6 per cent decline in the previous month. The contraction in electronic domestic exports was largely due to parts of PCs (-43.2 per cent), ICs (-14.6 per cent) and disk media products (-36.8 per cent).

Non-electronic products. On a y-o-y basis, non-electronic NODX decreased by 32.0 per cent in February 2013, compared to the 3.7 per cent increment in the previous month. The contraction in non-electronic NODX was led by structures of ships & boats (-99.4 per cent), pharmaceuticals (-56.5 per cent) and electrical machinery (-54.5 per cent).

seletar

18-03-13, 16:34

http://www.chinapost.com.tw/business/asia/singapore/2013/03/14/373054/Analysts-increasingly.htm

Analysts increasingly worried Asia is lending itself to higher debt risks

By Fiona Chan, The Straits Times/Asia News Network
March 14, 2013, 12:17 am TWN

SINGAPORE -- As the United States and Europe fret over their huge government debts, a different kind of debt worry is surfacing in Asia.

Analysts are flagging the rise of lending levels in the region, such as bank loans and corporate bonds, as a growing concern.

Stable growth, strong bank deposits and global low interest rates are fueling what is seen as a potentially risky appetite for lending among banks on the one hand, and for debt among individuals and companies on the other.

Borrowings as a proportion of the overall economy in Asia apart from Japan have already shot past the peak that prefaced the Asian financial crisis, suggesting that debt levels have risen relative to the ability to service them.

The risk of a country's growing dependence on such debt is that it becomes more vulnerable to economic and financial shocks. An economy with higher leverage is likely to see more business failures and loan defaults in a recession or if interest rates rise sharply, all else being equal.

Bank loans as a proportion of gross domestic product (GDP) have reached an all-time high in Asia excluding Japan, surpassing the peak prior to the 1997 Asian financial crisis, said HSBC economist Frederic Neumann.

That is troubling because a poorly supervised lending boom in Asia had contributed to the 1997 crisis, by making the region's banking sector more exposed to the subsequent plunges in asset and currency values.

Including bonds — a rarity in the 1990s but having sold in record levels in recent years — the measure of debt would be even higher, Neumann added.

This is worrying as the rise in credit is outpacing the growth in economic output, he said. “In short, more and more debt is needed to generate 1 percentage point of GDP growth.”

To restore balance, Asia's economies need to keep stepping up productivity, Neumann said. In the meantime, as long as loose monetary conditions in the developed economies continue to spur global funding and keep borrowing costs low, the region's leverage is likely to grow even more this year, he added.

Within Asia, Singapore is one of the countries seeing both higher levels of and faster growth in private sector lending.

In terms of average debt to GDP, Singapore comes second after China among major emerging Asia economies, said Goldman Sachs analyst Jose Ursua a in a recent note.

China's credit was 127 percent of GDP last year, on average, while Singapore's was 115 percent, he said. Malaysia and Thailand logged debt of about 110 percent of GDP on average last year.

South Korea's ratio was 99 percent, India's was 51 percent and that of the Philippines and Indonesia was around 30 percent.

In response to queries from The Straits Times, the Monetary Authority of Singapore (MAS) said that as of the fourth quarter last year, Singapore's private sector domestic debt-to-GDP ratio was 118 percent.

Not only are Singapore's absolute lending levels high, but they have been growing faster recently than most of its neighbors'.

Among Asian countries, Singapore and Thailand have seen the steepest year-on-year rises in their bank credit to GDP ratios over the last two years, according to Johanna Chua, Asia-Pacific chief economist for Citi.

In Singapore, concern over credit levels has mainly manifested in worries over property debt.

DBS economist Irvin Seah notes that mortgage loans are at an all-time high, as a proportion of both the overall economy and of total deposits.

“The property market is the new safe deposit box for Singaporeans,” he said. “This implies rising risk exposure of the banking system and of the entire economy to the property market.”

According to the MAS' latest financial stability review, property-related exposure made up 46 percent of domestic loans extended to non-bank entities as of September last year.

But this was down from the average of 48 percent since 2004, and the growth in such lending had moderated over the last year.

On a household level, the trends are more worrying. Household assets grew by 7.8 percent year-on-year in the third quarter of last year, but household debt grew by a bigger 10.4 percent, driven largely by housing loans.

This has led to Singapore's household debt to GDP ratio topping the eight Asian economies surveyed in the MAS' review as of September last year, including South Korea, Thailand, Indonesia, Taiwan, Hong Kong and China.

Should interest rates rise, buyers who have over-extended themselves on mortgage loans would be hit, especially since the “vast majority” of home loans in Singapore are based on floating-rate packages, the MAS said.

If mortgage rates go up by 4 percentage points, the mortgage-servicing ratio for the average household will increase by 13 percentage points, it added.

Take a person with a mortgage rate of 2 percent, who is spending 30 percent of his income on loan repayments. If his mortgage rate shot up to 6 percent, he would then need to pay 43 percent of his income to cover the increased payments, this indicates.

Worries over rising property-related indebtedness prompted the MAS to impose tighter home loan limits this year, including loan caps and higher cash down payments on second or subsequent mortgages, and curbs on mortgage-servicing ratios for HDB flat loans.

Rumors have also surfaced that similar mortgage-servicing ratio limits are in the works for private home loans.

The good news — so far — is that while analysts are sounding an early alarm on the rise in debt, they do not think it has reached a dangerous point.

Chua noted that rapid credit growth and a higher-than-usual rise in debt to GDP “do not always lead to some form of systemic banking crisis.”

But research shows that more often than not, credit booms are followed by an extended period of below-trend growth, she said.

Standard and Poor's credit analyst Tan Kim Eng also noted that debt to GDP ratios may sometimes overstate financial risk.

In financial hubs such as Hong Kong and Singapore, many companies invest abroad using domestic loans, but the value created by their investments is not included in domestic GDP. That tends to overstate the debt to GDP ratio in these economies.

Total credit extended in the region to non-bank entities also remains lower than that in most parts of Europe, and Asian lenders have more diversified credit risk than their counterparts in Ireland and Spain, Tan added.

Still, he warns that a marked slowdown in economic growth in the region could expose current weaknesses associated with the recent ramp-up in debt growth.

If growth in China slows sharply before that in the developed economies pick up, Asia's economic activities will be adversely affected and loan defaults may start to rise, said Tan.

seletar

18-03-13, 16:53

http://www.bloomberg.com/news/2013-03-17/moody-s-sees-defaults-as-pboc-warns-on-local-risks.html

Moody’s Sees Defaults as PBOC Warns on Local Risks

Bloomberg.com
By Kyoungwha Kim & David Yong - Mar 18, 2013 12:56 PM GMT+0800

Moody’s Investor Services said China (http://topics.bloomberg.com/china/)’s local-government financing vehicles face greater risk of default, as regulators warn 20 percent of their loans are risky.

A rally in LGFV bonds may reverse, particularly should delinquencies emerge, Christine Kuo, a Moody’s analyst, wrote in an e-mailed response to questions on March 8. The average yield may rise to 7 percent by June from 6 percent now, according to Shenyin & Wanguo Securities Co., the first brokerage incorporated in China and ranked the nation’s most influential research provider by New Fortune magazine in 2010.

“I see increased risk of LGFV defaults because the financial profiles of many remain weak and heavy refinancing is needed,” Hong Kong-based Kuo said. “Regulators have asked banks to control their LGFV exposures. Some of the projects could default unless other sources of funds are found.”

People’s Bank of China Governor Zhou Xiaochuan (http://topics.bloomberg.com/zhou-xiaochuan/) said in a March 13 press briefing that about one-fifth of loans to the financing arms of local governments are risky. Net debt issuance by these entities surged 179 percent in 2012 to 1.132 trillion yuan ($182 billion), accounting for 50 percent of corporate bond sales, according to Bank of America Corp. data.

The China Banking Regulatory Commission warned lenders to exercise caution and limit their holdings of bonds sold by local governments’ financing arms, the 21st Century Business Herald said on March 13. Banks aren’t allowed to increase outstanding loans to LGFVs above the level as of Dec. 31, 2011, the report said. Phone calls made by Bloomberg News to the regulator’s press office went unanswered.

Loan Curbs

The yield on Jilin Construction Holding Co.’s 7.1 percent notes due March 2018 was 6.05 percent today, according to Shanghai Exchange, after touching a record low of 6.04 percent on March 15. The yield on Liaoyang City Assets Operation & Management Co.’s November 2019 bonds rose two basis points to 6.78 percent. Companies pay an average 2.6 percent for debt globally, according to a Bank of America index.

The financing units of local governments owe between 9.1 trillion yuan (http://topics.bloomberg.com/yuan/) and 14.5 trillion yuan, or 18 to 30 percent of China’s gross domestic product, according to a BNP Paribas SA report published in January. Tighter curbs on bank loans prompted the units to scramble for funds in 2012, driving a 50 percent jump in net corporate bond sales and a 404 percent surge in trust financing, according to Bank of America.

Aggregate financing (http://www.bloomberg.com/quote/CNLNSFIN:IND), which includes non-bank lending, climbed 914 billion yuan to a record 2.54 trillion yuan in January, official data show. China’s non-financial credit has increased by nearly 60 percent of GDP in the past five years, outstripping the rise in the U.S.’s in the five years preceding the onset of its banking crisis in 2008, BNP Paribas said.

‘Financial Risks’

The central government “is concerned about financial risks and will take action to contain risks in 2013,” said Zhang Zhiwei, chief China economist at Nomura Holdings Inc. in Hong Kong. “We believe policy will have to be tightened eventually, but the timing and pace of tightening remain uncertain. We continue to focus on the size of total social financing as the best indicator of potential policy change.”

CEBM Group, a Shanghai-based investment research firm, estimated last month that about 4 trillion yuan to 5 trillion yuan of credit -- including 2 trillion of bank loans, 2 trillion of trust loans and 180 billion yuan of LGFV bonds -- is set to mature this year.

The bond market has yet to show signs of concern. Most LGFV notes are rated AA and above, according to Bank of America, and the yield premium on one-year debt of that grade over AAA debt shrank by 71 basis points to 50 basis points in the year through March 15, Chinabond data show. A Feb. 22 gap of 45 basis points was the least since September 2010.

Notes ‘Overpriced’

“The outperformance last year is unlikely to be repeated in 2013,” said Yu Wenlong, an analyst at Shenyin & Wanguo.“LGFV notes are now overpriced. The tightening by regulators on shadow banking will mark a turning point for the market. Authorities face tough challenges as they need to meet local governments’ funding needs, while preventing defaults.”

The biggest threats to China’s financial stability are shadow banking and loans to LGFVs, Bank of China Ltd. Chairman Xiao Gang wrote in a commentary in the China Daily on Feb. 19. China should pay special attention to such risks, the Economic Information Daily reported on Jan. 22, citing Huang Shuhe, vice chairman of State-owned Assets Supervision and Administration Commission.

Hainan, Ningxia

The provincial debt levels in some second and third-tier cities, particularly those in western China such as Hainan and Ningxia, have increased with their debt-to-GDP ratios already exceeding 40 percent in 2010, CEBM said in a Feb. 21 report. More than 30 percent of LGFVs have insufficient operating cash flow to cover debt payments, the report said, citing CBRC estimates.

“This suggests that some local governments could potentially default,” CEBM analysts including Steve Chen wrote.“An actual default would reverberate throughout China’s commercial banking system and have a systemic impact on China’s financial system.”

China is encountering “some natural frictions” as its capital markets develop, according to Wee-Ming Ting, head of Asian Fixed Income at Pictet Asset Management, which oversees $29 billion of emerging-market debt. Pictet’s holdings include securities from China, although not LGFV notes, he said.

“Increasing debt in China is an issue to be addressed but it’s not going to cause a major problem,” said Ting, who is based in Singapore. “China is in a transition period as it shifts away from a reliance on bank loans to the bond market.”

Default Swaps

The cost of insuring China’s sovereign notes using five-year credit-default swaps fell five basis points this year to 62 in New York, according to data provider CMA, which is owned by McGraw-Hill Cos. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent if a government fails to adhere to debt agreements.

The yuan weakened 0.03 percent to 6.2155 per dollar as of 12:53 p.m. in Shanghai (http://topics.bloomberg.com/shanghai/) today, according to China Foreign Exchange Trade System. The government’s 10-year bonds yielded 3.59 percent on March 15.

CEBM Group estimated total social financing will rise 15 percent this year to 17.5 trillion yuan, providing ample liquidity to companies and local governments. Loans to Tianjin’s LGFVs are expected to post “stable” growth this year, after 30 billion yuan was extended last year, Lin Tiegang, head of the the PBOC’s Tianjin branch said this month.

“The government will definitely continue to allow LGFV bond sales, but may restrict some high-risk or low-level local governments from selling bonds,” said Ethan Mou, a fixed-income strategist at Bank of America in Hong Kong. The yield spreads of LGFV bonds could widen in 2013, due to supply or a credit event associated with trusts, Mou said, adding that a “big sell-off”could be a good opportunity for buy-and-hold investors.

To contact the reporters on this story: Kyoungwha Kim in Singapore (http://topics.bloomberg.com/singapore/) at [email protected] ([email protected])David Yong in Singapore at [email protected] ([email protected]);

Regulators

18-03-13, 17:09

@seletar can you post us some more interesting news like juicy sex scandals or celebrity gossips coz most of your posts arent that interesting to read :D

DKSG

18-03-13, 20:12

@seletar can you post us some more interesting news like juicy sex scandals or celebrity gossips coz most of your posts arent that interesting to read :D

You mean news like Urban Vista sold 50% on first weekend launch ?

News like D'Nest moved hundreds of units in the first weekend ?

News like Singapore is still the TOP investment choice amongst many many countries ?

These news, we know can already, no need like some people know, they prefer to wait at the Jetty...

DKSG

kane

19-03-13, 00:16

i wonder how what's the new sales number for march, i'll probably go with 1500 units.

Regulators

19-03-13, 00:40

I think the last big hoorah by a developer would have to be la fiesta, Urban Vista is struggling to sell out. we won't be seeing performance like la fiesta for a long time.

kane

19-03-13, 01:06

Wasn't sennett and d'nest doing quite well last weekend?

///scuderia

19-03-13, 08:10

IMHO,

I believed that CM7 is working. Sales volume will continue to gradually dwindle even as developers are selling below their expected selling price. We need to give CM7 time to work into the system. We need patience. It can't be immediate.

1. Trilinq and many other developments across the island suffered from slow sales.

2.Clearly if wasn't for this CM7, Urban Vista, DNest, Sennet Residences will continue to sell well if not better and faster pace at a higher per square foot. Why So? I personally think these developments are well priced,well located and well designed products that appeal to first time buyers needs. These clearly are not samples that represent the whole property situations in Singapore.

For property to collapse like what we see during the Asian Crisis in 98 as well as SARS 2003, it is rather difficult and i must say almost impossible. Cause our government is proactive clearly by the pace and intensity of the cooling measures. In fact having these cooling measures implemented not only ensures a stable growth and continued gradual upward trend in Singapore's long term property prices but also provides counter measures(by lifting them) to sudden and strong external shocks that is detrimental to Singapore economy and property prices.
This is critical to provide a solid social safety net for our fast ageing population as well as create stability in our society. in the mean time, our pace of property appreciation will definitely be gradual if not stagnant while allowing many other fellow Singaporeans to catch up as their wages will continue to rise over time.

seletar

19-03-13, 11:31

http://www.cnbc.com/id/100562024

China Showing Symptoms of Financial Crisis: Report

Published: Monday, 18 Mar 2013 | 4:08 AM ET
By: Ansuya Harjani (http://www.cnbc.com/id/42551921)
Assistant Producer, CNBC Asia

Just as concerns over a hard landing in the world's second largest economy look to have faded, economists at Nomura sounded a warning that the Chinese economy is exhibiting the same worrying symptoms that triggered the 2008 financial crisis.

The country's rapid buildup of leverage, decline in potential growth and elevated property prices, are three red flags that should not be downplayed, according to economists at the bank, Zhiwei Zhang and Wendy Chen.

"China faces rising risks of a systemic financial crisis and the government needs to take action quickly to contain such risks. We believe the true extent of financial risks in China is not fully appreciated by investors," Zhang and Chen wrote in a report released over the weekend.

According to the analysts, if China maintains a loose policy stance this year it would heighten the risk of a financial crisis in 2014. Easy monetary policy risks pushing up inflation and leverage in the economy, making the eventual de-leveraging process more disruptive.

"This is clearly a dangerous choice, but we cannot rule it out given political pressures to maintain strong growth," Nomura said in the report.

Leverage, a leading indicator of financial strain and measured as a ratio of domestic credit to gross domestic product (http://www.cnbc.com/id/44505017) (GDP), has reached its highest level since records began in 1978. This ratio was 121 percent before the financial crisis of 2008 and has risen to 155 percent in 2012, as a result of the government's fiscal and monetary policies to support growth.

(Read More: Time to Remove the Punch Bowl in China? (http://www.cnbc.com/id/100371793))

"China's leverage rose by 34 percent of GDP in five years — a worrying sign given its history," they said, noting leverage in the U.S. rose by around 30 percent of GDP in the five years before entering a crisis.

The Chinese government has in the recent months sent a number of "unusually strong" signals that it is concerned about financial risks in the economy, they said.

During the People's Bank of China's (PBOC) fourth-quarter monetary policy committee meeting, the central bank said "controlling risks" was a top policy objective.

Last week, PBOC governor Zhou Xiaochuan said the risk banks face on loans to local governments should not be underestimated. He noted that around 20 percent of loans to the financing arms of local governments were risky, several media reported.

In addition to worrying levels of leverage, China is facing a decline in potential growth, according to the economists, driven by a decline in the labor force and productivity growth. The country's working age population began to decline in 2012, according to Nomura.

(Read More: China's Aging Population Threatens Its Manufacturing Might (http://www.cnbc.com/id/49498720))

Last year, China's economy expanded 7.8 percent, its slowest pace in 13 years. In 2013, the government has set an annual growth target of 7.5 percent.

Property Bubble?

Rapid property price inflation (http://www.cnbc.com/id/44092018) is the final warning sign in the economy, they said, noting that unusually strong increases in asset prices have typically preceded banking crises.

According to official data, housing prices have risen 113 percent from 2004 to 2012 in major Chinese cities. However, they deem the data highly "questionable" and "contradictory" to observations on the ground.

Citing a report by three professors in Tsinghua University and National University of Singapore, Nomura said property prices rose by 250 percent from 2004 to 2009, far outstripping the level of growth in the official index. This compares to a rise of 84 percent for the Case-Shiller U.S. housing price index from 2001 to its peak in 2006.

(Read More: Why China's Property Market Is Getting Scary (http://www.cnbc.com/id/100521104))

The government has acknowledged risks in the property sector through imposing a slew of measures to stabilize prices earlier this month including the stricter enforcement of a 20 percent capital gains tax on home sale profits.

However, Zhang and Chen, expect they will be ineffective in keeping a lid on prices in the long run.

"The pattern has been for house prices to initially dip after tightening policies are introduced, then to rebound, which suggests that the risks have not been mitigated," they said.

seletar

19-03-13, 11:40

http://www.todayonline.com/singapore/close-9-10-singaporeans-support-measures-tighten-inflow-foreign-workers-poll

Close to 9 in 10 Singaporeans support measures to tighten inflow of foreign workers: poll

TODAYonline
18 Mar 2013

SINGAPORE — Close to nine in 10 of Singaporeans who took part in a poll by the government’s feedback channel, REACH, supported the measures to tighten the inflow of foreign workers.

REACH said the set of measures, namely reducing the Dependency Ratio Ceiling; tightening the criteria for S Passes and Employment Passes; and raising the foreign worker levies, received the highest level of support in its telephone poll of 972 citizens.

The poll was conducted from Feb 27 to March 8.

Eight in 10 supported the initiatives of the new Budget, while more than six in 10 agreed that it will contribute significantly towards building a better Singapore.

Budget measures related to restructuring the economy for quality growth, such as the Wage Credit Scheme, were the most warmly welcomed.

Sixty-nine per cent of respondents agreed that the Wage Credit Scheme, in which the government co-funds the wage increases for Singaporean employees earning up to a gross monthly wage of S$4,000, will encourage businesses to raise wages of these Singaporeans. CHANNEL NEWSASIA

seletar

19-03-13, 11:50

http://sbr.com.sg/economy/news/what-306-nodx-plunge-could-mean-singapore-gdp

Singapore Business Review
ECONOMY | Staff Reporter, Singapore
Published: 19 Mar 2013

What the 30.6% NODX plunge could mean for Singapore GDP

It's not a very pretty picture.

According to Nomura, non-oil domestic exports (NODX) plunged 30.6% in February, far worse than expectations (Consensus: -16.0%; Nomura: -19.2%).

Base effects played a role given that NODX last year was at its highest in February in nominal dollar terms – but that is only part of the story.

On a sequential seasonally adjusted basis, NODX fell another 2.4% m-o-m after falling by 1.8% in January.

Here's more from Nomura:
Weakness was seen across the board, but most notably in key items: electronics (-27.4% y-o-y), pharmaceuticals (-22.9%), and structures of ships & boats (-99.4%).

By destination, NODX worsened sharply in every major market led by the US (-52.1%), EU (-52.2%) and China (-10.6%), despite better-than-expected data in the US.

Our view has been that NODX will be volatile but we were still surprised by how extreme and broad-based the decline in February was.

There is still a case to expect some pickup in the near term as base effects fade, pharmaceuticals swing the other way, and oil rig shipments come through. However, the underlying improvement we forecast in H2 is increasingly under threat.

Taking the latest data into account, our monthly GDP tracker suggests very weak growth of -3.0% y-o-y for Q1 so far (verus +1.2% in the previous quarter).

Unless there is a sharp rebound in the March indicators, the risk is that this could put more pressure on the authorities to provide some form of short-term support and ease policy, which puts the spotlight back on the next MAS policy announcement in April.

seletar

19-03-13, 11:56

http://www.todayonline.com/business/exports-plunge-306-demand-key-markets-declines

Exports plunge 30.6% as demand in key markets declines

http://www.todayonline.com/sites/default/files/styles/photo_gallery_image/public/14378433_0.JPG
Electronics exports continued to struggle, decreasing by 27.4 per cent on-year. Photo: Bloomberg

By Wong Wei Han (http://www.todayonline.com/authors/wong-wei-han)
TODAYonline - 19 Mar 2013

SINGAPORE — Exports declined more than expected last month, hit by a combination of the Chinese New Year lull and a sharp fall in demand in key markets.

Non-oil domestic exports (NODX) fell by 30.6 per cent on-year in February, said International Enterprise (IE) Singapore yesterday, reversing the marginal 0.4 per cent on-year expansion in January. On a seasonally adjusted, month-on-month basis, NODX fell by 2.4 per cent. The result was worse than the consensus forecast by economists polled by Reuters, who expected exports to fall 16 per cent on-year.

“What makes February’s NODX plunge worrying is that Singapore is not in a recessionary phase of the business cycle and the global economy seemed to be improving over the last few months,” said UOB economist Francis Tan.

He pointed out that, while the sharp decline was due to some extent to the high base effect — Chinese New Year fell in February this year, while it was in January last year — even if that factor was stripped out, NODX for January and February combined still declined 16.4 per cent on-year.

Exports to the European Union, Singapore’s top market, dropped by 52.2 per cent last month, while shipments to the United States dropped 52.1 per cent.

“This shows that the decline this time is only partially due to base effects and continued weakness in several export items still plagued overall NODX,” said Mr Tan.

Electronics exports continued to struggle, decreasing by 27.4 per cent on-year and worsening from January’s 5.6-per-cent decline. PC parts saw the biggest fall in exports within the sector, declining 43.2 per cent on-year.

Despite facing a seventh straight month of contraction, there are signs that a recovery may be on the cards for the Republic’s electronics sector. “With the US SEMI Book-to-Bill ratio biting above parity for the first time since May 2012 in January 2013 to reach 1.14, the cyclical uptrend in the global electronics cycle over the next few months seems intact and will probably trickle down to strong export demand for Asian economies,” said Mr Tan.

Non-electronics exports fell 32 per cent on-year in February, weighed down mainly by pharmaceutical exports, which plunged 56.5 per cent.

Credit Suisse analyst Michael Wan said the biomedical sector might see subdued growth in 2013 after expanding about 10 per cent last year. “Pharmaceutical output is likely to see slower growth given that most plants are already at full capacity, and realistically, only one plant can potentially expand capacity this year.” Wong Wei Han