A Singaporean's Perspectives and Musings.

Are Singaporeans Better Off?

2011-01-09T05:43:00.000-08:00

The issues of the day – high unemployment, aging population, asset inflation have become global problems inflicting on governments everywhere. US’s unemployment rate stayed stubbornly high at close to 10% and with their financial crisis taking a toll on everyday living, US is unlikely to crawl out of its doldrums in the near future without having to devalue its own currency to banana republic status.

Japan, previously the world second largest economy after US, with all its engineering prowess, and diligence has a standstill economy with flat growth.

China, after displacing Japan as the second largest economy, also exhibit the same vulnerabilities – aging population, asset inflation beyond real affordability. In China, land right is not the same as in most democracies – the land does not belong to anyone and but owner has the right to use. Its property lease are usually 60-70 years and even with such short lease, prices in the main cities of Beijing and Shanghai or even cities in Qingdao, Shangdong or even the Southern city of Hainan, property prices shot beyond our mid range housing in Singapore based on cost per square feet. In terms of earning power of their average citizen, the disparities are too great to imagine.

I look everywhere in Asia, Europe and even in US, such are the pathetic state of affair and in Singapore, with our growth outstripping many other economies, we must admit that our working class Singaporeans are somewhat left steps behind and income levels have seen very modest improvements, if at all. Workfare must be featured more prominently in any budget allocation as a mean to bring up the buying power parity of our working class Singaporeans. On their own, they are suffering silently and this much the Government must recognize. The allocation for Workfare does not put much cash on the table for the recipients and the Government should look into how discretionary allocation should be made to these families so that they will not have problems buying food and staple for the families, putting their children to school and having sufficient for transport and medical care.

Though, the Government has strongly rejected any notion of minimum wage since they do not add to any productivity gains but in fact may raise the cost of employers. We have seen examples – where minimum wage distorts hiring patterns and creates new employment contracts – interim, short term arrangement because employers are afraid of any long term employment with minimum wage that will not be easily rescinded without options of pull back in poorer times. This is a sensitive labor matter but it must be looked upon seriously as it affects all working class Singaporeans. If implementation of minimum wage is not doable, what can the Government do to level up? Enhance Workfare with entitlements for so long as any working class Singaporeans continue to work or want to work.

There are many issues bothering everyone – from transport to education to housing and these are matters that affect us one way or another. The Government must show that it cares and not deny any citizen or Singaporean, our right to better living, even if we are better off than others elsewhere in the world and for our aspirations to be met in our own Singapore way.

A Home for Everyone - Affordably

2011-01-07T21:17:00.000-08:00

The prices for HDB, seemed skewed due to prices distortion owing to increased demand from new PRs and citizens. There should be a strong correlation in terms of price movement and the number of PRs approved in the year 2008/2009. There is a record of over 50,000 approved PRs in 2008. The HDB prices has stubbornly stayed high despite the economic doldrums in 2008 to early 2009. PR, of course, are entitled to buy HDB but now, they are constrained to buy them from open market and in open market, as we all know, prices will tend to be bidded upwards when supply is stagnating and at best relatively flat growth.

This probably explains in large part, the spike in HDB prices and COV since they are able to up the ante with COV premium to secure the HDB compared to Singaporeans who may have to rely on their existing balance on their Ordinary Account to help pay down any downpayment. The COV part is the part that affect many Singaporeans. The COV part is tightly correlated to the underlying valuation provided for the HDB and this valuation will determine the differential between the ask price by seller and the COV premium the buyer will pay. Hence, if the valuation of HDB is unilaterally determined by the authority with no range bound flexibility and the bank will loan on the valuation indicated, then it is likely that every HDB purchase, with the inherent lower valuation, will end up with a COV component for every purchase transaction. Unlike for private property purchase, banks will usually loan on valuation supported by valuing companies and for so long as the bank is willing to support the application, loan is extended. This point to a glaring point in the valuation approach of private property and HDB and the loan extension approach by banks to private property and HDB.

The valuation approach to assessing value of the HDB should be re-looked at to ascertain why there is always a gap in the asking price and the valued asset and that for HDB, every transaction has to contain a COV component. Most Singaporeans are priced out of their HDB in the re-sale market because they cannot afford to pay the premium.

Singaporeans should be able to afford to buy a HDB as a primary accommodation and that this property should be owner-occupied. The aspiration of another group of Singaporeans, much better off, should be met in another way and not allowing HDB units to be treated as a commodity for normal market transactions of buying and selling since such acts will likely cause prices to move in tandem to market forces – usually upwards. HDB units should be left for Singaporeans and PRs and curbs should be put to deterred speculation on the HDB units and to discourage Singaporeans who own private property to own HDB and to rent out. It is quite apparent that even with the current HDB prices, the rental income earn a better yield than private property.

Hence, the authority should look into how valuation of HDB’s prices should realistically be assessed and determined and thereby seeing the relevance of COV as a component in HDB purchase. Second, the authority should look at how Singapore with private property should treat their HDB as stock can only be limited by the land we have to build more. If the resale market constitute a segment of Singaporeans who will own their HDB, and not owner occupied and at the same time owing a private property or various property investments, how can the authority remove HDB as a trade-able commodity in the investment mix.

HDB’s primary role should be to ensure every Singaporean is entitled to the HDB house and every consideration should be given to make sure that aspiration is met.

Expanded Economic Space for Singapore

2010-05-29T18:44:00.000-07:00

Playing up the anxiety of a small nation beset on all sides in a turbulent global environment, it is natural that Singapore should start to look nearer for balanced growth instead of looking afar to BRIC countries (Brazil, Russia, India and China). For the same reason that MM Lee Kuan Yew was insistent for a merger and unity in the early 60s of the two territories which will provide a common market and economic hinterland, Malaysia is still Singapore’s best bet. Malaysia is Singapore’s largest trading partner in 2009 with total trade amounting to S$86.1 billion, up from S$111.5 billion in 2008.

Indonesia, under the leadership of President Susilo Bambang Yudhoyono provided a decade of political and economic stability long wanting in this resource-rich Indonesian archipelago which has been an important trade region for Singapore. Indonesia is Singapore’s 4th largest trading partner in 2009 with total trade amounting to S$58.5 billion, up from S$75.1 billion in 2008

Whichever nearby economic space- Malaysia or Indonesia, Singapore must firmly anchor new roots into the supply chains of every global products it wants to deliver- pharmaceutical, petrol chemicals, semiconductors, biomedical products, etc- and to enlarge and to extend its supply chains across its nearest borders and to operate with neighbours in nexuses. We should build little Singapore and get Singapore’s enterprises as a pack to be able to work the entire supply chain reliably, from sourcing components to fabrication and sharing of R&D expertise. The enterprises must get together to support each other and even co-invest to go for the larger projects and reap bigger returns.

The vagaries of international markets means that whether Singapore goes near or far in its economic space expansion, risks still prevail and in this time, it is best for Singapore to amalgamate strengths nearer shores to capture a defining stakes in these crucial emerging markets of Malaysia and Indonesia.

Tributes to Dr Goh Keng Swee

2010-05-29T18:43:00.002-07:00

Dr Goh is an icon of the pioneering leaders whose far-sightedness and fortitude, whose ideas and ideals are stamped on scores of laws, economic policies and reflected in the millions of lives in Singapore. Without the dare of the lion-hearted Dr Goh, without his deliberate construction of a mythological legitimacy of Singapore- to engender multi-racialism, multiculturalism which he genuinely believe alongside the league of lions like MM Lee Kuan Yew, Dr Toh Chin Chye, Mr Rajaratnam , Singapore’s magic may be illusory.

Even in the grimmest of times in Singapore, the league of lions believed Singapore could really make it. We did and we owed our success today to them.

What are your favourite teams at the 2010 FIFA World Cup finals in Africa, and which one is likely to be crowned world champion come July 11? Why?

2010-05-29T18:43:00.001-07:00

Its football’s greatest tournament, unrivalled in glamour, prestige and universal appeal and indeed this World Cup marks a unique spot in the tract of history – it is the first time that FIFA World Cup is hosted by an African nation.

France is a hot bet by bookmakers to win in Group A and the bookmakers offer the odds of 2.05 for a French victory. In any stacked odds, France is still likely to be the outright winner of the 2010 World Cup. France rallied around Zinedine Zidane to reach the World Cup final in Germany and the lightning rod for this tournament for France is Thierry Henry. They have a lethal team asset in the form of strikers Nicolas Anelka and Karim Benzema. With Henry, their offensive is as formidable as unstoppable.

Basing on the number of countries that could reign as World Cup champions in 2010, France is the best to compete for the crown as world’s best. With their high technical skills as well as expectations and considering this is their fourth straight tournament, the round of 16 seems to be a minimum exit point. In FIFA, anything is possible and certainly anything is possible if the French can hold up and make it to the knockout round. In any case, the French is unlikely to be at the periphery of the World’s greats at this football extravaganza this summer.

CPF's Restoration

2010-05-29T18:42:00.000-07:00

The CPF’s restoration is an eventual and expected move and from a human resource perspective, it is a necessary adjustment since the restoration is one of the few ways to compensate the workers who have contributed to the revival and growth of the economy. Human capital, as a major part of the factors of production must be incentivized when the economy turns good.

Any hikes in cost necessarily will mean a hit in the bottom line for companies but this restoration should not be looked upon as increasing costs. It was lowered in phases owing to economic situations. Since 1999, in response to the economic downturn caused by the Asian economic crisis, the employer contribution rate was lowered to 10 percent. When the economy showed signs of picking up in 2000, this rate was increased by 6 percentage points to 16 percent in 2001. However, it was lowered again to 13 percent in 2003. The current 14.5% contribution by employers and the subsequent move upwards should therefore not be seen as a hit on the bottom line. The workers have shared risks and pains of wage cut and restraints and even retrenchments.

What is perceptibly lost with the increase in CPF on the left side of equation is compensated by the slew of incentives on the right side of the economic growth equation- $5.5 billion for productivity investments and assistance to companies. An allocation of $2.5 billion over the next five years to build a “first-class” continuing education and training system for adults will mean that companies can tap these fiscal stimuli to help transform their companies to achieve higher productivity with better human capital resources. With these fiscal stimuli and budget, maximum production and productivity can be achieved. Such restructuring based on productivity gains and sharpening competencies in the human capital is very much work in progress but we hope a dumb-bell shaped mode will surface soon and that will take Singapore to another level of sustainable long term growth.

Is there merit in making a workplace more father-friendly? What can be done?

2010-05-29T18:41:00.000-07:00

Any forms of raising the floor on work-life balance, be it father-friendly or mother-friendly arrangements, they must be aligned with business imperatives. It is a myth that such arrangements may compromise work performance. On the contrary, motivated staff’s performance far outweighs any provisions or deemed losses made to the work-life balance. Everything about such workplace friendly practices comes down to people. When we are in business, we cannot escape the human elements at work – human care, human commitment if not properly provided will result in human frustrations and human despairs. Businesses must also serve the needs of its own people so that any improved working conditions can be linked to higher level of economic productivity and employment performance.

Father-friendly needs are not as demanding as mother-friendly needs. Fathering situations are less complicated than mothering situations. It is therefore not about giving more days off for fathering activities but providing flexibility to fathers to bring their children to doctors where such verifiable visits can be counted as compassionate off-day or providing flexible turning- in-and-out timing for work since some fathers need to send and to pick children to and from school.

For so long as providing the father-friendly supports in the workplace does not impact competitiveness but at the same time, it can raise morale and motivation, such movement must be encouraged. The one rock-solid gift we can give our sons and daughters is our unconditional love and support and the company can also give that rock-solid support to father and mother friendly arrangements.

Is now the right time to begin restoring employers' CPF contribution rates? How quickly can this rate be raised and by how much?

2010-05-29T18:40:00.002-07:00

As the economy strengthens, inevitably wage pressure will head up and the issue of CPF restoration will become increasing pressing. CPF is many things to Singaporeans – Ordinary Account (OA) means compulsory savings, monthly housing repayments, tertiary education repayments, funds for selective investments, etc. Special Account (SA) is available for withdrawal as a monthly life annuity from age 65 under the CPF Life scheme, and the Medisave Account (MA) can be utilised for medical expenses and Eldershield insurance premiums.

Any increase will be good news for the workers and naturally the employers will feel the burden of increase wage load. In times like today with short boom-bust cycles, it is hard to use CPF as a blunt tool to moderate wage loading for employers. In economic downturn, all factors of production costs would be moderated downwards and human cost will take a direct impact leading to wage freeze, cut or worst retrenchment. Increasing CPF by 1-1.5% technically has nominal impact on total wage loading on the employers since the quantitative increase is marginal. In my opinion, in an economic crisis, when government imposes a reduction in CPF contribution for employer, the reduction is more notional and symbolic and demands a certain risk and pain sharing by workers. If the government is to subject the CPF to move in tandem to the rhythm of the boom-and-bust cycles which are becoming increasing short, it will become clumsy flipping and flopping. Only the workers suffer as they need the CPF for their house, medical insurance and payment for their annuity.

The government should consider a complete one-off restoration and thereafter leaving the CPF fixed. Making multiple-step adjustments is like many tiny pricks. One swift prick is better than many irritable tiny pricks for employers. The government can use other monetary and fiscal policies to help employers cope with wage loading in poorer times like providing taxation reliefs for wage components. They can even calibrate increased taxation reliefs for older workers. This will spur the employers to re-look at the factor of production costing and to tweak other variables in the equation other than manpower costs.

CPF should be immediately restored.

COE Pricing for Cars

2010-05-29T18:40:00.001-07:00

The rise in COEs and vehicle prices is a result of a volatility skewed and opportunistic pricing due to the reduction of the COEs issued monthly. This pricing scourge is not an anomaly with any need to call for action.

The COE pricing band widens because the government is controlling the car population and COEs. With the free float pricing mechanism for COEs, the prices will tend to settle northward with a limited COE quota. The broad implications using pricing as a tool to control congestion will only lead to higher prices and a resultant smoother traffic flow.

Personally, I do not anticipate a straight line escalation of prices or expect wild fluctuations or rapid appreciation of the COEs. There is a secondary used car market to meet the demand of car owners. There should not be any campaign against the current free float pricing policies. Let the market decides the prices as it will settle at a level where price meets aspirations to own a new car.

Directors' Roles & Responsibilities

2010-05-29T18:39:00.000-07:00

Multiple directorships must necessarily impact proper corporate governance, firm monitoring and performance. Too many directorships must necessarily lower directorial effectiveness as directors are constrained by personal time availability and effectiveness on each board they serve.

Sitting in too many boardrooms upsets the corporate governance policing work and oversight duties. If the director receives a compensation, does the “busyness” of the director affect board performance? Will the busy director be more acquiesce and capitulate to the wishes of dominant chairmen or chief executives? What are the characteristics of directors who are valuable in the market for board seats? How do the capital markets perceive the appointment of well-connected but inevitably busy directors? Do all appointed directors serve stockholders’ interests and carry with them the burden of corporate governance oversight and independence? All these considerations are fine balancing acts and there is no magical optimal number for any director to undertake. It is really how the directors exercise discretion, independence and personal commitment to each board that really matters. At the end, it is when the directors are called to rise to the occasion at exceptional times that their true colors are shown – whether the directors can discharge their duties with professional care and due diligence and to defend their independent decisions.

In any way, directors should not have their hands in too many pies as multiple directorships are thought to have an inverse relationship to director quality.

Property's Resurgence- Reactions and Comments

2010-05-29T18:38:00.002-07:00

The macroeconomic effect of the bubbles can be widespread and detrimental if not managed and intervened appropriately. There is no such thing as a good bubble – it is simply a temporal euphoria that can cause an uplift of market sentiments but if prolonged, the bubble can lead to irrational exuberance.

With cooling measures put in place by MND, the prices of properties are persistently testing new highs. The pervasive low interest rate regime has a great effect on buyers’ inclination. Property as an asset class become desirable as it is a good hedge and has good capital gain potential. Hot money from around Asia, Middle East and Europe looking for a safe investment can bet on the property market. The government’s intervention approach should be to curb excessive speculation where the velocity of price increase is slowed down- but does not limit where buyers’ investment direction. Since human nature are both imitative and inventive, it can be detrimental to the whole property market when prices crash. This will affect genuine buyers for owners’ occupied properties and government’s intervention is needed to ensure that genuine buyers are not sidelined to a point where prices are artificially high and out of reach to them. This will be a fundamental error in policy and property investments are not perpetual money machines – where prices move upward in straight line

Now everyone seems to suffer from what I call pro forma disease- that is taking the sharp rise in prices and projecting them endlessly into the future. So when your hairdressers and men in coffee shops start starting about investing in property, it is the start of the pro forma disease and can lead to irrational euphoria and that, in a very certain way, will lead to a painful collapse of prices. A certain intervention is needed by the government to manage the velocity of price shifts through interest rate and taxes so that bubbles do not blow up to cause asset deflations and a home over their head.

No bubble is good bubble.

Do the latest initiatives in IE Singapore's new five-year plan cover the ground adequately? What more can be done?

2010-05-29T18:38:00.001-07:00

The winning formula is really to cast the net wider to capture opportunities at a deeper level of the blue ocean and be a key player in the emerging Asian market story and a participant in the BRIC economies. Singapore needs access to world market. IE Singapore will be the bridge and connector of the dots.

Building convenient access to markets and infrastructures of major cities and free zones are like joining all the dots to form a sustainable economic framework for Singapore. Integrated ports, free trade and logistics zones, industrial parks and townships development should be the way Singapore participates in the growth stories of these regions. These are our strengths- housing, transport and system building. Relying on exporting through manufacturing cannot be our long term strategy anymore since we have neither the manpower nor cheap resources to produce competitively.

IE Singapore should not only lead Singapore companies to inner second or third tier cities of China, India or Vietnam but focus on specific areas of development – environmental engineering, housing and city development, water projects, transport and in areas where we have distinct advantages.

Who on the Forbes Rich List (can be more than one) do you admire most? Why?

2010-05-29T18:37:00.000-07:00

These billionaire tycoons pounced on opportunities in telecommunications, constructions, properties, infrastructures play in their countries. Carlos Slim and Li Ka-shing are self made men who capitalized on those chances and took the risk. They dreamt of a big empire that can rule the part of the world they live in with a certain kind of strong fists. They are the rebels, the round pegs in the square holes and they see things differently. They are not fond of rules but what they do rules the part of the world they live. They change things, merge and acquire opportunities. They explore. They create. They inspire. They push themselves forward to become what they are.

I admire self-made men like Carlos Slim and Li Ka-shing who can stare at an empty canvas and see their empire which is a beautiful work of art. They followed their dreams from their humble backgrounds and actualized the empires to become the billionaires they are now.

I believe that the people, who are crazy enough to think they can change the world, are the ones who do.

Singapore's Interest Rate Shift

2010-05-29T18:36:00.000-07:00

Singapore benchmark interest rate will remain fairly stable with a possible pre-emptive modest rise in the short term since the US’s rate is likely to stay low for a while. Asian central banks typically follow the Fed in interest rate setting though with a lag effect. The growth momentum in Asia outstrips those in US and Europe but despite this, the central banks in Asia are unlikely to pursue any aggressive normalization of domestic interest rates independent of those pegged by the Fed.

In the short-to-mid term view, there are two temporary depressants to any possible rate hike. The first depressant is that the world economy is still beset with uncertainties in Europe and US. The possible sovereign defaults in Greece may cause a spill-over panic and if more European countries get embroiled, the state of affair can be debilitating. Any hike will likely slow growth. The second depressant is the uneven effects of stimulative policies employed to promote recovery and their sudden withdrawal may cause steep drop in capital and consumer spending. The recovery momentum is already showing signs of slow down and any spike in interest can shift the axis of the spinning recovery to bring growth to a halt.

To be sure, headwinds to growth must remain significant and sustainable before any modest hike in interest should be considered. Any hike is likely to cool the heated economy and to bring inflationary pressure down.

An interest rate hike will likely shift demands of capital and consumer purchases to a lower gear. The flow rate of hot money will also likely be slowed down bringing assets prices, especially property prices to realistic levels. Fiscal spending is expected to wane as growth driver. At this juncture, it is better for Singapore to maintain a low interest regime to grow the economy out of the woods confidently before any contemplation of a rate hike. Q310 should be a good time for an interest rate rethink – not now. Singapore can have the last laugh.

Are concerns over the surge in the property market justified? How effective are the recent measures to moderate the market, and does more need to be d

2010-05-29T18:35:00.002-07:00

The loose monetary conditions globally and a pervasive low interest rate regime are partial reasons for the property asset inflation witnessed in Singapore. Without any interventions, the demand and prices may escalate to levels that may be incompatible and inconsistent with the economic realism and fundamentals. The surge in demand and prices are unexpected in the light of a certain contraction in the first half of 2009. The second half of 2009 saw the built-up of investment momentum and the subsequently ballistic run on property prices.

The government’s announcement of cooling-off measures like the stamp duties imposition on sellers is at best a dampener. The boom-bust cycles are getting too short and too unpredictable Cooling measures must be let in to slow down the sudden spike and fall of prices which will otherwise cause shocks to the market. Elements of speculative trading activities must be brought to a low and to reduce short-term arbitrage opportunities which also may cause asset price distortions.

One best way for the government to cool off the market is to work on the supply-side equation by putting up more land sales and leave the market to decide how high it should bid for the property. Any other interventions like minimum holding period before flip or sub-sale tax for uncompleted properties or even capital gain tax in tiered format may be intrusive for a free market.

Today’s economic recovery combined with low borrowing costs set off this massive increase in property prices which seemed so right and irresistible to the heartland upgraders. The HDB prices remained relatively stable with strong resistance to price deterioration during most part of 2008 till first half of 2009 compared with private properties.

Singapore can least afford a run on its property prices as many Singaporeans’ fortune are intricately tied to property and prices must be built on firm fundamentals and less of froths. Government’s interventionist approach is needed but there must be clarity on the extent of policy tightening so that genuine buyers can factor those policies in their decision making process in the mid to long term.

In your view, what are the most notable aspects and proposals of Budget 2010? Do the proposals cover all the major bases?

2010-05-29T18:35:00.001-07:00

2010’s budget is premised on building long term structural adjustments to ensure the sustainability of Singapore’s economy and its fundamental resilience. The dynamic flexibility in the budget allocation – in promotion of certain industries with funds and bank lending coupled with pro-growth policies in R&D, training and innovation will give the economy the ability to overcome future challenges – which should not be taken for granted.

Singapore’s economy still has to contend with short-run cyclical performance of the global economy and may be further subjected to shocks in the Europe, Middle East and the US. The budget is careful not to go into a long-run entitlement spending burden in healthcare or social welfare. A one-time personal tax relief and a 1-percentage drop in corporate tax are significant to show that policies are in place to preserve Singapore underlying low-tax environment which is pro-business. This budget provides a positive environment for small businesses and entrepreneurial activities with its monetary stimulation. With an efficient deployment of funds and loans and with prudent risk-taking implementation, the budget will promote technology and productivity gains. Solid and sustained economic performance is a necessary foundation for a sound fiscal environment and for advancing Singapore’s standards of living.

Human capital development is a key plank in this budget and to set the virtuous cycle in motion, a huge budget is allocated for training to improve productivity and to enhance key skills – skills that can bring about better jobs and incomes for Singaporeans. With a stretched retirement age for the working population, training must be provided to cater to this ballooning workforce with lesser reliance on foreign workers for jobs that can be substitutable with Singaporeans.

Singapore’s economy has shown a remarkable ability to absorb shocks of all kinds and its resiliency is a trademark of Singaporeans. The budget is premised on economic realism based on flexible and efficient markets for labor and capital to eventually build on infrastructures and people.

Tiger Year for Singapore

2010-05-29T18:34:00.001-07:00

2022 will see major shifts in the global distribution of power and the emergence of China to become a superpower in waiting. 2022 will be a Sino-centric world as China steps up to become a leader of a new global economic order. Singapore needs to be integrally locked in tandem into China growth momentum. China and India are emerging as economic and political heavyweights. China holds over a trillion dollars in hard currency reserves. Their phenomenal growth is opening the way for a multipolar era in world politics.

1974, 1986, 1998 are Tiger years and they are periods in decline coinciding with market troughs. Tiger years see great rises and falls and Singapore needs to have its signature fortitude and resolution to ride out these abrupt and disruptive periods. 1974’s oil shock and the Dow crash were hellish. The outbreak of Insider trading in 1986 leading to the Black Monday of October 19, 1987 was period of great stress. The Asian Financial Crisis was a period of financial crisis that gripped much of Asia beginning in July 1997 and through 1998, and raised fears of a worldwide economic meltdown due to financial contagion. 2010 see Singapore coming out of 2009 Financial Crisis of the century comparable to the Great Depression of 1929.

2022 will see Singapore latched on to more multilateral trade arrangements to stabilize its economy. With our small size, Singapore must maintains a high profile foreign economic policy and to develop and maintain activist economic diplomacy linkages at various levels of engagement in Europe, US, Asian and Pacific regions. Given Singapore’s geo-economics circumstances and our trading-state credentials, Singapore is very much dependent on the healthy development and stability of the international economic system.

2022 will see Singapore living in a world of contesting multilateralisms and will see Singapore asserting activism in this multilateralisms especially with China and India. With these broad-based alliances, hopefully it will provide some stability when the next trough forms in the Tiger year of 2022.

What items would you put at the top of your Wish List for Budget 2010? Why?

2010-05-29T18:33:00.000-07:00

Against the backdrop of a growing economy albeit a slower one, we should make 2010’s budget neutral and focus on building on structural and long term measures to ensure the sustainability of our growth engines. There should be certain conservatism in fiscal and monetary policies. As we turned the corner in 2009, we cannot afford the quick-fix rescue packages which were generally broad-based relief type’s measures to save businesses and jobs.

With disproportionate growth and with a Gini coefficient, which is used to indicate income inequality, remaining persistently high, Workfare’s continued roll-out is important to help supplement the income of low-wage workers. The formula should be tweaked to put more money in the hands of the workers so that affordability of common staples and living expenses can remain sanely affordable to the low-wage workers. Inflationary pressure is likely to rise for food commodity and oil and this will exceed any marginal increase in salary for these workers.

The Government should also look at boosting businesses with new measures like providing tax holidays for new business start-ups for a longer period. To attract offshore risk capital to Singapore to support the entrepreneurial eco-system, the Government should consider providing the risk capital with fixed years of tax holidays so that their risk value will drop. This will gravitate risk capital from the region to Singapore. Investments in the research and developments or green initiatives should receive longer period of tax holiday.

Singapore can differentiate itself by introducing bold fiscal measures to boost investments and increase market liquidity.

My Thoughts on ESC Reports on Foreign Workers

2010-05-29T18:32:00.000-07:00

The dilemma of having foreign workers is as vexing as not having them. Singapore needs these foreign workers to feed the economic boom, foreign workers are able to fill the void and do jobs Singaporeans are not willing to do yet there is a growing social pressure against them. The two main levers in managing the tap of the foreign workers flow are the imposition of dependency ratio and levies. These are old tools which did not significantly discourage the employment of the foreign workers. Despite the tiered levy formula, the rate of employment of foreign workers did not see any contraction year on year.

The impending increase in levy, in actuality, will not dampen the need for hiring foreign workers. Most of these workers are in hot and dirty environment or the 3D trade- dirty, dangerous and debasing. This is the bottom of the pyramid paradox – where the bottom jobs are unwanted by Singaporeans and when filled by foreigners, social pressure mounts. Work at this stratum has no serious takers and the employers have inelastic demand for foreign workers notwithstanding how high the levy may be. This can be counter-productive as it will increase the real cost of operation without increasing any real output. Most of these jobs are dead-end roles. There can be limit to how much job re-design and re-configuration can improve on the prospect for these 3D jobs.

Saving jobs for Singaporeans should be at pointed and focused at the middle section of the pyramid where there is space for productivity gains through up-skilling and training.

The million-dollar question is where to set the base of the pyramid where the levy application can be considerate to these employers since they have an inelastic demand for foreign workers. Above that baseline of the pyramid, a tiered levy formula will apply at the middle section.

At the end, we need synergistic workforces and cooperation at the multiple hierarchies in the job pyramid structure. Singaporeans or foreign workers will be work force of peers and working towards the prosperity of Singapore.

My Thoughts on ESC Reports on Productivity and Innovation

2010-05-29T18:31:00.001-07:00

With no hinterlands and a dwindling local population, it spells a certain doom for Singapore if those growth gaps are not immediately plugged. Economic regeneration must be preceded with an innovative culture and the “dare to dream and to deliver” mindset.

Rethinking on the unthinkable and untouchable topic of nuclear energy may open opportunities and possibly innovative options. Can Singapore anchor ourselves as an energy re-distributor and connector in Asia even though we do not have oil, coal or gas? With nuclear energy, can we have a regional buy-in and answers for energy-deficit developing neighbors of Singapore?

Rethinking on subterraneous under-city development is innovative and exciting. Singapore can create different livable city standard with a definitive quality of life. We can engineer different types of underground spaces and create vibrant underground cities with museums, shopping centres, restaurant belts or even more casinos. Will Singapore consider a city like Bikini Bottom set deep in Pacific Ocean where SpongeBob SquarePants lives – an underwater sea city altogether?

Productivity focus is not the end-all prescription for a dwindling local workforce which is now supplemented by cheap foreign labor. With a curb on the influx of migrant workers through the twin levers of control (dependency ratio and levy modulations), it is easy to dismiss that these foreign labor will become unnecessary. In fact, productivity gains and use of migrant labor at the same time can create better multiplier economic returns. Sometime, productivity gains may increase unemployment or underemployment rate since each unit of labor can do more work versus the concept of more labor being compartmentalized to do different work. We hope that we do not fall into the productivity trap and paradox.

The real reason for the productivity paradox may lie in the fact that the Singapore economy is emerging from a pure manufacturing play and migrating to one where service also plays a key role. The animating force in the old economy was the desire to mechanize low level manufacturing and productivity gains can be sharp in this area. Where high value, complex manufacturing activities are concerned and where it involved high cerebral activities like research and development, productivity gain can be low as it involves many trials and many errors.

With increasing jobs in the service sector, where productivity growth is low compared to manufacturing, mechanization will run its course as the predominant driver of productivity. It has proven difficult to introduce the kinds of productivity-enhancing technologies in many service industries that are used in manufacturing. Productivity statistics therefore can be elusive and hard to gain but nonetheless, a must pursued objective to ensure that our Singaporeans workers can form T-shape competencies in terms of breadth and depth of knowledge.

Comments on ESC Report

2010-05-29T18:31:00.000-07:00

Comments on ECS Reports

2010-05-29T18:30:00.001-07:00

Singapore, at this decade’s crossroad, is vulnerable without effective change of its growth framework. With the underlying growth momentum and quantum growth rate of 8-9% of some countries in the region and without a cohesive growth strategy, Singapore may be swept under the swift current of change. In a single breath, we need both productivity and innovation to take us to the next lap.

The Economic Strategies Committee’s strategic thrusts are forceful and laser-sharp to pinpoint areas of growth and innovative developments. Now Singapore is at the helm to dream and to deliver to the world. We are to be a vital, thriving city in Asia. With a lack of manpower and raw land, we are using the concept of multiplier to virtually do more with less. Shortage of manpower is compensated by skill development and productivity increase – which is to up-skill unit of labor to produce more. To be a growing, vital, thriving city with a continuous subterraneous city is both innovative and daring. This will virtually and instantly create a larger space for a land-constrained Singapore. This will, effectively, form part of our land expansion effort in addition to our continuing land reclamation which can be cripplingly slow.

Singapore’s economic rejuvenation must be focused on energizing the growth of right industries and premised on the growth of local enterprises which in turn will pull along employment, quality of life and quality of environment.

Innovations will be the catalyst multiplier for Singapore in this competitive heat and productivity will be our answer to manpower optimization.

Aviation Industry- Survival of the Fittest

2010-05-29T18:29:00.000-07:00

The future of the airline industry will see a fundamental shift in tandem with the shift of economic activity from the Atlantic to the Pacific. This fact is a foregone conclusion seen by how countries in the Pacific are emerging from the debris of the financial fallout of 2008/2009. The centre of gravity of air traffic, people and cargoes, will be in the Pacific.

The thrust of many governments will be to promote and enhance trade and tourism rather than protecting the commercial interests of national carriers. Governments may fly into some headwind with such policies of open sky. Airlines can grow only by merging interests through equity swaps or acquisition or simply through routes sharing. Carriers must play in all the segments of the price spectrum - SIA at the high end, Silk Air at the middle and Tiger Airways at the low end.

Bilateral and multilateral route exchanges will be reconfigured and a new aviation framework will emerge with acquisition and merger of airlines. JAL needs to start on a clean slate after its bankruptcy filing by seeking its banks to forgive a hefty debt which will otherwise sink the airline. With a clean slate and new partnerships, JAL may transform itself from a gargantuan outfit of inefficiency and profligacy into a leaner and sharper airline capable of competing in a global airline industry beset by turmoil.

The airline industry has been plagued by several factors such as overcapacity, commoditization of offerings, cutthroat price rivalry exacerbated by the entry of low cost carriers, and occasional bout of terrorism and air disasters that will send the whole industry into tailspin. Oil prices’ wide gyration also added to the unpredictability of the industry and the only certainty is to hedge against movement. Even SIA suffers the brunt when the price of oil goes the other way and that impacted profitability. SIA is positioned as a premium carrier with high levels of innovation and excellent levels of service but the recent crisis saw passengers moving to the back of the plane. SIA has consistently outperformed its competitors throughout its history, in the context of an unforgiving industry environment. However, SIA is not likely to be returning to profitability soon, unless there is a spike in traffic and after it has made some capacity adjustments to certain routes. The premium end of the market offers scant hope of any recovery in yields for all those front-end seats. The low cost carriers are likely to be the bulk carriers bringing passengers to cities from various established hubs and Singapore must thrive to become such a hub point.

The open sky should not be clouded with selfish national interests for carriers to survive.

Do you believe China's asset markets are in bubble territory? If so, what are the potential implications for the rest of the region, including Singapo

2010-05-29T18:28:00.002-07:00

China’s stock markets Great Leap Forward are astounding by any measures and coupling with a hefty real estate price growth, the bubbles are gathering pace in high gear for the world’s third largest economy. The risk of bubbles and excess capacity will grow invariably unless policy is tightened soon. This level of credit expansion is not sustainable and is as surreal as unreal. Any policy action will be towards credit tightening if China has to avert a major credit crisis.

When China’s government announced its stimulus package in November 2008, it is a daring and probably the largest monetary and fiscal stimulus in history. With the injection of liquidity into the economy, bank lending rate grows exponentially and furiously. Such liquidity if properly channeled into infrastructural development and useful investments, it will inevitably prop up the economy but if it is fueling asset prices, the outcome can spiral out of control, complete with a domino effect on the property prices. The impact of credit and liquidity on GDP growth has been declining in China pointing to the fact that excess money may be funneled into speculation in stock and property markets.

If China is to stick to its pro-growth fiscal stance, any withdrawal of its stimulus spending too early can potentially stymied growth. The real aim is to purge the asset market frenzy of speculators, and not the total withdrawal of fiscal and monetary stimulus. The danger is that policymakers may tighten too much, discouraging not only speculation but also business growth and consumer spending, which can precipitate a hard landing for the economy. The jitters in Asia and the rest of the world are rooted in the fear that China will not be able to help pull the global economy from recession if it has a rough and hard landing which can be a big blow to recovery hopes given the inability of the U.S., Europe and Japan to play that role at this time.

The People’s Bank of China has just raised banks’ reserve requirements, but it needs to act more boldly to moderate interest rates upwards and to curb bank lending or at least be selective in its lending. The yuan must be allowed to rise. If China's reckoning does come as a result of the bubble popping, it is hard to say whether it may presage Japan-style deflation, Russian-style hyperinflation or American-style stagnation.

Anyway, bubbles do not deflate gradually; they pop unexpectedly and that is the scary part.

What initiatives and projects could the Integrated Resorts adopt that would not just ring in revenue and profits but also create positive spin-offs fo

2010-05-29T18:28:00.001-07:00

The Integrated Resorts in Singapore is an economic development gamble and the odds are high for an economy that was premised on a growth model that is based on the export of initially labor-intensive manufactured goods to world markets. This is to be followed by a move up the technology and value-added supply chains as comparative advantage shifted.

This “shifting sands” syndrome caused Singapore to re-look at its obvious small size and to see how we can diversify out of export manufacturing and into high-value services. Singapore strives in a free- trade environment with free capital flow in the cross-roads between developed countries in US, Europe and Asia and the developing countries. The Integrated Resorts, by themselves cannot be reasons enough to spur the entire service industry in Singapore supplanting the export manufacturing contribution to our economy. The benefits of the IRs are not simply the gaming taxes it generates but instead the direct and indirect multiplier effects – of bringing the rich from around Asia and the region to Singapore, increasing the quality of life quotient, having more entertainment formats (world best tax free shopping experience, all-year Best World Food Fest) and improving mass tourism. High-end goods and services can take Singapore as their destination in Asia since Singapore can have a good catchment of the rich and appeal to the mass-market of Asia. The region's rich come to Singapore because it is safe, secured and predictable. High-end properties and the marina bays will be in high demand.

Free flow of wealth in the region can be magnetized and gravitated to Singapore and this will enhance the wealth management services. In all, Singapore can be the center of money game – whether it is gaming, risk management, exotic financial and structured products, venture capitalism, it is where money management chain take center stage. Whichever growth model, the light will be cast on the IRs in the next 2 years to see how it can be the catalyst for the multiplier growth effects in Singapore.

Comments on PM's New Year message

2010-05-29T18:26:00.002-07:00

Singapore is one of the asymmetries and anomalies in the history of nations. Small and scarce of natural resources including human capital, we should not have survived, let alone survive well. To remain relevant in the global value chains, Singapore must be the nexus between the developing countries in Asia and the advanced economies of the West. Singapore must be a meaningful gateway and passage way for the Chinese and Indian economies. Extending our economy by building townships, eco-cities, industrial parks in foreign lands are like sowing the seeds of growth on foreign soil. When such models become successful, it will pull along Singapore’s economy. Singapore’s government will need to focus on developing local enterprises into specific clusters for success – like research and development in genome, bio-chemical and pharmaceutical products or high end manufacturing in nanotechnology or in building Singapore into the Great Entertainment Paradise – a Service Haven.

With our growth, Singapore still need to hold fast to the precept that no one should be left behind with our progress and it should not be a tale of two worlds – the rich and poor worlds. Poorer Singaporeans should share the success of the country with re-distribution of economic benefits in the form of GST rebates, utility subsidies, medical coverage and education for the poor. Workfare is one good way for the poorer segment to gain some pay re-balancing. Always Singaporeans First!

What do you wish for your organisation in 2010, and what New Year resolutions are you making to achieve this? More generally, what are your hopes and

2010-05-29T18:26:00.001-07:00

2010 has a “New Normal” and the old economic realities of high leveraging, low interest rate and excesses in capital markets is undergoing a rapid and fundamental change. We are seeing major deleveraging in many companies, an expanding economic role for government with its aggressive fiscal and monetary stimuli to prod the economy along and pervasive uncertainties despite sporadic and occasional sprouts of unexplainable exuberances. The crisis as has broad implications for many businesses which upended business models but at the same time also created unexpected opportunities.

The crisis taught us the importance of building flexibility into a company’s strategy and to always maintain nimbleness and responsiveness. My resolution for Singapore, especially, is for the remodeling of our economic framework to push Singapore into the next decade. Our recent drop in ranking for SGX needs a re-think. Hong Kong and Shenzhen topped the list of world IPO destinations, in terms of numbers and cash raised. Emerging market activity has dominated IPO markets this year with Chinese companies the largest source of total funds raised globally. Our bridging effect between the East and West is dwindling and unless there is a re-think on how we can reconfigure our financial structure to become an important node in the financial value chain, Singapore may be outflanked by increasingly more influential Chinese cities.

Major Lessons for 2009

2010-05-29T18:25:00.001-07:00

2009 has set a “New Normal” going forward and the old economic realities of high leveraging, low interest rate and excesses in capital markets is undergoing a rapid and fundamental change. We are seeing major deleveraging in many companies, an expanding economic role for government with its aggressive fiscal and monetary stimuli to prod the economy along and pervasive uncertainties despite sporadic and occasional sprouts of unexplainable exuberances. The crisis has broad managerial implications for many businesses which upended business models but at the same time also created unexpected opportunities.

The crisis taught us about the fine balance of leveraging and business growth and that “big is not necessary good”. Bigness entails maintaining a large structure imbued with organizational and people’s complexities, which can be expensive and in times of crisis, it is not easy to toe the thin line with a top-heavy organizational structure. The crisis taught us the importance of building flexibility into a company’s strategy and to always maintain nimbleness and responsiveness. We excel by being nimble and quick and outmaneuvered competition by maintaining high level of liquidity which gives us strategic options for entering into new businesses.

The financial markets, from Wall Street to the Chinese bourses and Singapore Straits Times indexes already experienced powerful rallies over the past six months and the double-dip prospect may look remote. Even with the early week modest pullback on Wall Street, the U.S. stocks are up 60 percent since March. The 52-week range for the Straits Times index is 1,455.47-2,803.85 which is more than 100% leap of faith. Properties prices climbed and are testing new highs for per square feet prices- HDB inclusive. This “New Normal” is unpredictable and can be disruptive like climate changes which can happen in a flash.

2009 taught us to be fiscally and monetary prudent and not to live on the sugar-high influences and the “New Normal” will not be normal to us anymore.

Did the APEC Summit succeed in addressing the most important economic and business issues? How important to Singapore and the region was it to have th

2010-05-29T18:24:00.002-07:00

The Summit achieved tremendous momentum in setting the tone for trade liberation and cooperation among members. US’s participation in such dialogue draws the importance of Asean and the Asia Pacific countries in relations to US’s trade policies. During George Bush’s presidency, he met with Asean leaders 3 times – in October 2002 in Los Cabos, Mexico, in December 2005 in Busan, Korea and finally in September 2007 in Sydney. These meetings involved only 7 members of Asean as Cambodia, Laos and Myanmar were not part of APEC. This time, President Obama engaged with all 10 Asean members signifying Washington’s aim to bolster trade and investment links with the region as a mean to strengthen the US economy and to balance relationship with counterweights with China and India.

The acceleration of regional integration to create larger markets is one of the best ways to stimulate growth. The formation of the Trans-Pacific Partnership (TPP) free trade area to pursue the streamlining of customs procedures and financial policies among the region’s economies is one such way to forge ahead with real, substantive development in a free trade area. The group of 4 – Singapore, Brunei, New Zealand and Chile will set the snowball effect of aggregating more members to participate in the opening up a trade in a larger trading area. Washington is pursuing bilateral investment treaties with countries in the region and its indications to throw its support behind the Apec’s "single window" and TPP is symbolic in this Summit.

Coupled with greater Asean integration, TPP can be the foundation of a broad Free Trade Area of the Asia Pacific and Singapore can be the bridge to link this up and plays the pivotal role as a trade channel developer and important gateway to Asean and TPP.

What do SMEs here need to do to work more fruitfully with large enterprises and multinationals, on the one hand; and with SMEs from other countries, o

2010-05-29T18:24:00.001-07:00

The Singapore business ecosystem is limited by its sheer small size. Singapore has no natural resources and lacks a sizeable domestic market; hence the only rational choice is to attract large enterprises and multinationals to come to our shore to set their bases here. Many SMEs grew in the early 1980s to 1990s on the back of a manufacturing boom brought on by the likes of Seagate and HP. The SMEs played second fiddle and supported these large enterprises and MNCs by providing contract manufacturing of parts and services. They grew on the momentum developed by these large enterprises which provides goods and services to the world. Such clustering of manufacturing focus is necessary – petrol chemical, pharmaceuticals, semi-conductors, etc and Singapore excel by working hand-in-glove with these MNCs.

The other strategic thrust will be for Singapore’s SMEs to reach out and be connected to the global economy especially in growth countries like China, India, Brazil, Russia and also by plugging into the Asia Pacific growth opportunities. For growth, Singapore SMEs must also work with the SMEs in these countries and be plugged into their business eco-system and to become the lifeline of their economic growth. It is through such economic strategy that Singapore is linked up with the global economy.

Service Sector- The New Dynamo for Singapore

2010-05-29T18:23:00.000-07:00

For any sustainable growth in Singapore, a service-oriented infrastructure empowering the service economy must evolve in a flexible and dependable way. This will include financial intermediation, business services and information & communications and lifestyle services. There is demonstrable growth and continued strength in the services industries and the service industry was the major contributor to growth in the last 3 quarters of the year. Singapore needs to preemptively alter its economic DNA by not relying exclusively on manufacturing sector. While exports of manufactured goods in chemical, pharmaceutical, biotechnology, electronics and oil refinery products remain key exports indicators, other sources of growth must be nurtured. Such diversification will help reduce the vulnerability of growth to large swings during crises and minimize the economy’s dependence on a few correlated sectors. However, in the near term, it is unlikely that services will take over the mantle from manufacturing as Singapore’s growth engine as it moves into its post-recession gears.

Singapore, despite our size, attracted the global attention when it successfully hosted the world’s first ever Formula One night race. Singapore plays host to the Asia-Pacific Economic Cooperation (APEC) and hosting of the Youth Olympics simply means that Singapore will want to be a hub for such exciting activities and this events will surely reap significant economic spin offs for various trades for the country, in the form of increased tourist influx and swelling patronage for side entertainment and other associated events. Come 2010, our two integrated resorts (IR) namely, Marina Bay Sands and Resorts World, will be launched in Sentosa. The IRs will position Singapore as a must stop-over destination in Asia offering a wide range of entertainment experiences for the leisure and business visitors thus enhancing the tourism receipts. The resorts will promote Singapore’s status as a convention hub in Asia and thereby positively impact the supporting industries, such as hospitality, healthcare, entertainment, F&B, transport & communication etc, apart from attracting huge investments and opening up employment opportunities directly and indirectly.

Singapore is very advantageously located in the Asian region which, is home to the burgeoning middle class demanding quality lifestyle products and services including wealth management services enticing the growing high net worth individuals in Asia.

With such prospects over the horizon in Singapore, it will be a new dawn for Singapore.

Will the incentives in the new Malaysian Budget succeed in increasing foreign investment and attracting foreign talent? What aspects of the Budget wou

2010-05-29T18:22:00.000-07:00

The new Malaysian Budget contained modest reductions in public expenditures and increased taxation - property gain tax and a hint of Goods and Service tax. The budget is planned to lay a foundation for deficit reduction and prudence and to drive Malaysia towards embracing a high-income economy in 2010. It included provisions to promote selected important industries for Malaysia’s economic development.

The most appealing piece of the budget is the liberalization of foreigner participation in its economy. The government’s aim to attract foreign direct investments (FDI) by allowing equity ownership in companies and joint ventures in local projects is a positive step towards leveling the playing fields in the economy where skewed competitive situations turned away many investors. With a tweak to allow foreign investors to gain full control over corporate finance and financial planning companies set up in Malaysia, it may see a surge of capital finance activities especially in Islamic banking areas. By relaxing conditions and simplifying procedures for foreign companies to operate in Malaysia, it now looks decisively attractive to many foreign investors. The challenges, however, lie not in its policies formulation or structure but its drive and intent to see that such level playing fields are indeed flat enough to promote the intended effect of competition and innovation.

In addition to attracting companies to Malaysia, the government is also simplifying the grant of Permanent Residence status to highly skilled individuals and this will build its catchment for such talents within Malaysia. The move was made in recognition of the importance of attracting highly talented individuals from abroad to accelerate technology transfers and the nation's transformation process. Asia Pacific will be the hotbed of growth in the next decade and the aggregation of talents to key capitals are important as such talents may act as catalysts to actual growth. This is a challenge for Singapore as well and manpower policies have always to be reviewed to ensure that the channels for talent distribution to the various industries are not choked because of policy flaw or oversight.
In advancing towards a high-income economy, the government’s new approach based on innovation, creativity and high value-added initiatives will drive the economy up a different alley but the key is not in the Budget but the verve and determination for the government to see through its program in a fair-minded, balanced approach for the long term.

Wage Issues

2010-05-29T18:21:00.000-07:00

Despite some early signs of economic stabilization and growth, the issue of wage restoration may be on the cards. During the crisis, there were elevated concerns over job security and losses that led to an increased in employees’ willingness to accept lower settlements for wages – be they wage cut or freeze. With some visibilities on the horizon, job creation has intensified and unemployment has shown signs of dipping but the growth spurts may not immediately translate to wage restoration. Typically, it may take 2-3 quarters of lag from the inception of real growth before wage will see restoration.

With improving times, it is not just heartless but pernicious to assume that companies will not have a reversal on wage freeze and restraints. The real crux is fairness. Only a demonstrably fair approach like keeping retrenchment to a low or belt tightening with wage cuts and restraints is likely to have the broad support that will turn the company around. When profitability returns and when there is no ineffective response, then it is unfair to everyone. Companies have little choice then but to reverse their competitive decline through wage restraint and improved productivity.

The more optimistic forecasts that are beginning to appear are indeed predicated on such a rapid restoration of companies’ ability to compete effectively and productively and hence a similar restoration of employees’ wages of pre-recession level.

This is a time where the management cannot abdicate their leadership opportunities by letting bean counters lead the company's charge through these times. Shortsightedness will not give the companies any latitude to retain good employees. When the tide rises, companies must engage the workforce, promote productivity and retain loyal and motivated employees for the long haul and that will mean a review of the compensation to ensure that everyone on the boat, who have withstood the test of times and have shown resilience and effectiveness, rise with the high tide.

Singapore's Economic Recovery?

2010-05-29T18:20:00.000-07:00

A regional, if not world, trade recovery has begun and looks set to continue unabated into 2010. Singapore's economy surged for a second straight quarter, and the government revised its 2009 growth forecast after confidently emerging from the recession.

The strengthening economic and earnings growth numbers did not shrug off the drudgeries and negatives like the slow but stabilizing job losses in Q209. 5,980 workers lost their jobs in the second quarter of 2009 which is no consolation that this is less than half the number seen in the previous quarter this year. Accordingly, there are 31 to 33 openings per 100 job seekers and the labor market is likely to remain weak till the end of 2009.

Consumer confidence in large asset categories like properties, COEs and shares is not showing any sign of weakness and is showing sustainable strength over the last 2 quarters. This shows the gasping disparity between the haves’ and haves’-not reaction to an imminent economic recovery. The jobless workers are still looking for a job while those in better discretionary positions are betting forward in large asset categories. Hence, the trickle-down effect has not reached the base of the pyramid for the average Singaporeans to feel the effect of growth.

Personally, I would characterize our first half year performance as solid with a broad based focus on key industries like service and manufacturing. During the last three quarters, we have been driving for operational efficiencies, managing our working capital to meet the needs of the business and improving our relationships with our key customers. All our efforts, with financial and organizational discipline, enabled us to be fitter, nimbler and more responsive. Overall, we are confident that our profitable growth is sustainable in the next three to four quarters.

The economy is definitely heading northward and the relentless drum-beat of good economic news should continues into 2010.

How do you see China evolving in the next decade? What role do you envision it will play in the region and the world?

2010-05-29T18:19:00.000-07:00

一瞬千变的中国。

In a flicker, a thousand changes for China and whose fortunes and developments took astonishing leaps and bounds. October 1st marked the 60th anniversary of the founding of the People’s Republic of China. Beijing’s mammoth birthday celebration included China’s largest-ever military parade showcasing new weapons and an Olympic-size gala.

US Defence Secretary Robert Gates warned China’s growing military power ‘threatens our freedom of movement and narrows our strategic options.’ China’s sovereign-wealth fund is looking to invest in U.S. real estate, possibly even through a government program created to help bail out struggling banks. The China Investment Corporation (CIC) is responsible for managing part of China's foreign exchange reserves with around US$ 200 billion of assets under management. They are active in pursuing global resources in places like Africa , Australia, South East Asia and US. Singapore’s Mainboard-listed commodity trader, Noble Group, sold a 14.5 per cent stake for US$850 million to China Investment Corporation (CIC) in a private placement. The Chinese tentacles are embracing the world.

Since the 1950s China endeavored to catch-up with advanced Western economies. ‘Made in China’ is one approach to global competitiveness and Chinese goods and products are everywhere. The initial focus on manufacturing and productivity is impeding innovation but not for long with a more assertive China. With changing global market dynamics, the increasing visibility of Chinese brands, and the global strides of certain Chinese companies, such as Lenovo, Haier, Huawei and others, will facilitate China in overcoming its inherent inferior Made-in-China effect. Changing long held perceptions is indeed a Herculean task. China is bound to challenge this current state and alter its country of origin effect in a very positive direction over the next 10-15 years as Chinese manufacturers slowly embrace branding as their primary strategic driver of financial value and to move up the global value chain.

China will continue its real Great Leap Forward.

Cooling Measures for Property Market

2010-05-29T18:18:00.002-07:00

Witnessing the burst US property bubble, it is not hard to imagine how those conditions if not tempered with cooling-off measures by Ministry of National Development will put Singapore in similar dire straits. Property prices should be aligned with economic fundamentals. With the current spiraling of prices, these are signs of heightened speculative activity with no major shift in economic fundamentals.

The intervention with the immediate withdrawal of the interest absorption scheme and interest—only loans being offered for purchases of uncompleted property developments will halt any frivolous speculations for the moment. However, with the interest rate pedal nailed to the floorboard and remaining so low for such long time, new money will find properties as good investment options. Whatever the case, it looks like demand outstrips supply and therefore there is a chasing up of the property prices. Private home sales witnessed strong upswing since February this year when 11 times more homes were sold compared to January’s 108 units. Since then, developers have sold more than 10,000 units, more than double the 4,300 sold in the entire 2008.

All eyes are on the economic performance since should growth turns out weaker than expected, all buyers of property will be chasing the tails of escalating prices with possible capital losses should the market suddenly corrects and re-balances. This will create a negative wealth effect traceable to a flattening out or worst, drop in property prices. On the contrary, should the recovery maintains its course, interest rates will shoot north and drive up financing cost and this can have serious implications for those who over-extended with no real money to back their purchase. To avert such clammed up, the government is bringing back a confirmed list of land sales programme in the first half of next year to ensure a steady supply of private housing.

The removal of the IAS and IOLs technically will remove the speculative element from the burgeoning sales volume. This is good for mid to long term genuine homebuyers and investors as it will take out the speculative element in the pricing of the property.

The cooling-off measures by the government will discouraged property “flippers” but I suspect that property prices and sales volume will continue to improve; only now that the pace of increase would be more sustainable with less volatility with the hope that cool and level heads will prevail.

"What is the biggest people or leadership challenge you face as a leader today? As a business leader, how do you inspire others in your organisation t

2010-05-29T18:18:00.001-07:00

The ultimate test of leadership is not in moments of comfort but where the organization stands at times of challenges and extreme duress. The boundaries which divide winning and losing are at best narrow and vague. At those times of stress, no one will have clear visibility on how to navigate out of the troubled waters but a leader must rely on intuition and his articulation of clarity of vision and purpose.

2008 to the first half of 2009 presented a difficult window to many businesses and the whirlwind of uncertainties and dried sales pipelines raised issues of sustainability of our business. The slow down in business coupled with a bleak macro-economic environment was no consolation until we finally secured the tender for our Singapore casino’s recruitment. A lesson I learned from a SVP from the casino is that every game is a game of equal chance. Every bet is as uncertain as the last. Our business and organization sustainability is as good as the next 6-12 months of business pipeline and for so long as we continue to flip every card, we shall have every chance to win or lose for so long as we bet with a long view. As leader, we are focused on winning in the short term by building and strengthening the organization for the long term. No leader can focus only on short sighted actions and short term fixes.

To inspire, a leader must be a dealer and wheeler of hopes and craftsman of dreams. Naturally, the actions of the leader must inspire others to dream more, to learn more, to do more and to achieve more than they set out for themselves. In the absence of clearly defined goals, we may become strangely fixated to performing daily acts of mediocrity and trivia.

The future inevitably belong to those who believe in the beauty of their dreams and a leader should craft that dream and let the team stand tall on his shoulder so that they can see the further shores.

"With the benefit of hindsight, what lessons should have been learned by policymakers, bankers and market participants from the collapse of Lehman Bro

2010-05-29T18:16:00.000-07:00

A cruel wind blew over the graveyards of many investment banks like Lehman Brothers. The tombstone’s inscription reads “Live by Risk, Luck Took a Miss”. After the collapse of Lehman Brothers, the market threw one tantrum after another shaking in convulsion posing serious credibility and collapse of faith in modern finance. The collapse of faith inevitably led to a catastrophic economic failure due mainly to a global liquidity crunch.

With the benefit of hindsight, collapse of Lehman Brothers originated with unabated and uncontrolled risk taking, spurred by greed and avarice that led to disproportionate rewards and bonuses. The risk structure of the bank was thrown to the cruel wind and Lehman leveraged itself to oblivion.

Second lesson is the danger in relying too heavily on short-term financing. Lehman took long-term financing to ensure that the business never faced similar short-term pressures. The positions taken by Lehman caused spontaneous fall of the dominos when there was an immediately liquidity crunch and seizure of market confidence.

Third lesson is CEO Dick Fuld's false portrayal of Lehman's strong cash position and the hint of overconfidence during the period of duress. That showed a lack of care for transparency when Lehman was already on the brink of collapse.

The Fall of the House of Lehman hinges on excessive leverage, greed, myopia and lack of transparency and betrayal of trust. That betrayal of trust and faith is the underlying reason for the liquidity freeze across the world.

Productivity Talks

2010-05-29T18:15:00.000-07:00

It seems like an aberration when Singapore economy can do well in some dimensions and yet suffer a fall in labour productivity. Whether it is labour under-utilization that contributes to the dip in labour productivity, the government, union and employers are gripping with the links between labour market deregulation and real fall in labour productivity.

Our current manpower policies exercise a great deal of labour market flexibility by allowing foreign labour supply to support business growth and needs. These policies are designed not to substitute local labour content. The quota system is constantly adjusted so that the local labour utilization may be increased with the hiring of foreign labour. The wider implication of this is that, with a freer flow of foreign labour, the real wage growth of the local labour stagnant at best. The wage-setting equilibrium between foreign and local labour is affected.

Indiscriminate use of foreign labour does contribute to lower productivity. Hence to reverse a fall in labour productivity, labour market training must be in force to upgrade and adapt the skills of workers, foreign and local. Lower productivity is a result of structural problems which revolve around low rates of labour utilisation.

The crucial determinants of labour policy effectiveness will be to ensure that skilled labour, local or foreign, is applied to the work role and productivity can be increased with better mechanization, work flow and planning. Skilled labour can only come with training.

In order to compete for labour and extract optimal effort from their work forces, employer must put in place a robust training regime to train workers fit for their roles. The equilibrium values of foreign and local labour must be constantly moderated to ensure that Singapore can have a faster and better workforce - not cheap per se but with each unit of labour producing more.

"Which elements of the government's $20.5 billion economic stimulus package should be retained, and which modified or removed? Are there other policie

2010-05-29T18:14:00.000-07:00

The intent and purpose of pumping S$20.5 billion “Resilence Package” was to mitigate and slow down the steep downward spiral of Singapore economy. The pertinent risk then was the severity of the financial meltdown and the key responses were to saves jobs and to keep companies afloat. The one percent point cut in corporate tax went a certain distant to show Singapore’s commitment to reduce business cost. Direct tax cut should be maintained or reduced further to make our tax regime competitive and compelling. Direct taxes should be kept simple, low and predictable and that should become the hallmark of Singapore business environment. With signs of growth, tax for industrial and commercial properties should impact businesses less and therefore rebates should be reviewed for modification or removal.

The slew of measures like Jobs Credit did avert massive hemorrhaging job losses but the blunt tool also mean that such indiscriminate credits reimbursement should be modified as the economy heals with job growth outpacing job preservation. The $5.1 billion on training support and other measures to save jobs such as skill training and upgrading should be retained and be made a standard fixture in the re-shaping of Singapore labor contents and skills.

The Workfare Income Supplement (WIS) must be tweaked constantly as the wage gap widens to compensate the poorest 20% of our population since they are the hardest hit with inflationary pressure. WIS must be a tool used to help the bottom 20% survives the rising food and housing prices.

The $20.5 billion Resilence Package was not meant to change the shape of the economic curve but to avert sharper downturn but with an improving world economy, the uptick will mean that the government budget should be placed on bets for a better future – infrastructure, healthcare and education.

What were the key messages you took from the Prime Minister's National Day Rally speech? In particular, from your perspective as a CEO, what are your

2010-05-29T18:12:00.000-07:00

There is a certain universal seduction in healthcare- it affects everyone. Even the charismatic President Obama’s influence is vacillating as outrage over healthcare in US heats up. In Singapore, the 3Ms are the fundamental pillars holding up the healthcare infrastructure as the government try to fine-tune the system to better serve socialized medicine to the greatest number of Singaporeans. With an ageing profile in its demographics, Singapore cannot stand idly by on its healthcare. It needs to plan forward on its capacity, technology and human capital and ensure that the healthcare service delivery can be demographically convenient and properly delivered without any unnecessary escalation of costs.

The rallying call in Prime Minister’s speech is on unity. A united Singapore- regardless of race, language or religion. The chemistry of race and religious in Singapore is quite unnatural compared to many supposedly secular and democratic countries. Such state of collegiality of race and religion cannot be taken for granted and any single flashpoint can spark social unrest and degeneration of society where hate culture takes root like in the early years of Singapore.

Unity is also about sharing and spreading the fruit of growth. When the economy shrinks, all Singaporeans suffer. When the economy grows, wealth distribution may be disproportionate and may cause income imbalances – which can be the making of social unrest. Hence, the government took the pain of providing support to companies with Jobs Credits and building a robust training and re-training regime and infrastructure so that jobless Singaporeans can migrate to a different trade and skill when the economy swings.

Singapore, in order to posit for growth needs a New Frontier where we can all believe in and look forward to. The Prime Minister will have to show the way and spread the excitement of a new Singapore.

How would you explain the recent pickup in the property market, despite a weak economy? Is it likely to be sustained? Is there any cause for concern a

2010-05-29T18:11:00.000-07:00

The liquidity-driven economy in Singapore propped up not only the benchmark Straits Times Index but all assets classes. The 52 week range is 1,455.47 - 2,843.57 which shows a doubling of the index within a year. The Singapore dollar remains strong and stable and the dollar functions as a channel for financial intermediation from investors in Asia, Europe and the Middle East. Such channel will give rise to volatile cross border capital flows which typically are driven by factors or reasons unrelated to local economic fundamentals. The sharp spike of demand for property can be mostly attributable to such flow of funds from overseas as it is obviously clear that the economic weakness cannot spur such frivolous consumption. The economy contracted 6.5% in the first half of the year. The GDP growth forecast for 2009 is at -6% to -4%.

Such capital inflow can become unpredictable and volatile and is unlikely to be sustainable if the major force supporting the high property demand is from this source of funds alone. Domestically, we are also seeing more local investors taking strong positions in the hope of a recovery in 2010. With new property launches seeing high take-up rate, it is clear that the optimism carries with it a certain momentum. Investors’ snapping up of risky assets is also fueled by the recent adjustment of attractive interest rate for property buyers.

The tide seems to have turned, nevertheless. It is not about pessimism in the air but how strong the tide will turn to lift everyone up for fresher air.
- Hide quoted text -

What kind of economy and business environment would you like to see emerging in Singapore over the next five years? How will it be different from what

2010-05-29T18:10:00.000-07:00

Accept certain inalienable truths and one of them will be that Singapore will have its manufacturing base hollowed out. We can no longer produce cheap and will no longer be cheap. Our indigenous labor and land cost will rise. Our distinct comparative advantages in labor productivity is lowered and eroded by competition in the regions. We need a re-think to position ourselves as a center and hub of sorts and to integrate all the hinterlands’ competitive and comparatives advantages into our Singapore’s value chain to the world.

Going forward into the mid to long term future, Singapore’s tentacles must run deeply into the regional countries. They will be integral parts of Singapore hinterlands. The idea is much akin to the integrative action of nervous system where Singapore can add value in the coordination of research and development, providing arterial financial distributions and movement of capitals and funds and in the area of logistics. We may not be the manufacturing bases but Singapore can act to move human and financial capitals and use our transshipment advantages to provide gateway services.

One key way to build an inseparable alliance is to think of new ways to provide energy (refined or renewable energy) and water to many of our developing neighbors and how we can use technology and investments to boost our joint collaborations. All these will provide the links in a grand chain of mutual cooperation with our neighbors in Asia, which will promise to bolster Singapore’s significance in regional affairs.

If we do not re-frame our competitive advantages, at risk will be the sustainability of our economic model which is premised on strong manufacturing base with a strong financial infrastructure. We need more tentacles of progress.

Singapore will be a City of Dreams and a Future for all- galvanizing talents and businesses across Asia to Singapore. We’ll become a global schoolhouse drawing students of all Asian stripes to study and to work in Singapore. Some will be rooted here. Some will return but will establish their links from their home country to Singapore. As the City of the Future, Singapore will be the hub for sustainable solutions for tomorrow’s global opportunities in renewable energy, environmental protection, global schoolhouse, entertainment and healthcare. All these will be possible for so long as Singapore continues to have a visionary and stable government with a can-do spirit and taking every conceivable opportunity to take Singapore into the next lap and transformational change.

Woman Entrepreneurship

2009-08-03T07:48:00.001-07:00

Female enterprise is an uphill struggle to begin with and for them, it is really a case of unequal entrepreneurship. For billions of the world’s women, their lives are already intertwined with a web of constraints, limitations, obligations and sacrifices and for many they live in a certain pre-determined pattern of lives and are subject to a certain order of things.
There is a significant and systematic gap existing in the entrepreneurial involvement and business ownership of men compared to women – reasons are obvious as they clearly lack the opportunities in many societal contexts. These cases are more prominent in Asian than Western societies. Women generally lag behind men in terms of pay, promotion, benefits and access to opportunities. They are underrepresented in politics and management and are obviously less seen in most board rooms.
While the struggle of women's groups in every country is unique, increasingly, they are participating in market economy and even in politics where societies tend to be more matriarchal – like in Philippines and Indonesia. A Gloria or Megawati represents liberation of women’ power in those countries and within a strategic realm, it allows for empowerment of women and it elevates them to equal status as men. What are really needed for empowerment of women are role models to show the world those women folks are equal to the task and can rise to any occasion. What is needed is an enabling and encouraging environment that foster women folks to become entrepreneurs by showing them they can do it through role models like Ho Ching of Temasek, Olivia Lum of Hyflux or even Lim Hwee Hua who joins the ranks of Singapore's top political leadership as a full minister.
Women constitute an overwhelmingly untapped pool of entrepreneurial talents, and if we can encourage more women to start their own businesses or to head enterprises, we can add to our economic prosperity and vibrancy. It can add diversity from boardrooms to parliaments.

Indonesian's Prosperity with SBY

2009-08-03T07:47:00.002-07:00

Incumbent Susilo Bambang Yudhoyono (known in Indonesia as ‘SBY’) headed for a landslide win in Indonesia's presidential election becoming the first leader since the fall of Suharto in 1998 to secure a second term in office and this is significant since the shifting power bases become more predictable. With the second term, SBY can up his ante and ratchet up the pace and scope of reform and development. There is great potential in Indonesia as it is one of the world’s largest middle income countries if they catch up in their transformational development.
Although Indonesia is weathering the global economic downturn with 35 million Indonesians still living below the poverty line and half the population still remaining vulnerable to poverty, SBY has to look ahead to push its largely uneducated Indonesians to fit them into the global economy but skilling them appropriately and exporting these human resources will be his challenge. The Middle East and Muslim countries globally will be huge export destinations of such brains and brawns. Apart from its natural resources from petroleum, tin, natural gas, nickel, timber, coal to gold and silver, its manpower is a huge resource by itself.
Singapore, by all accounts, lack what Indonesia has in abundance – land mass, natural resources and human capital. With a stable political framework, cooperation with Indonesia can be in township and manufacturing hubs developments. Singapore’s proximity with Indonesia and closeness of ports will make such triangulation of manufacturing and trade management explosive. Singapore can work with SBY’s government to form manufacturing hubs in certain regions. Such cross border manufacturing and trades will spur employments and lower the overall cost structures of managing manufacturing in Singapore alone. For the least Indonesia is closer to Singapore than China or India.
Indonesia is a land of many possibilities for so long as the political climate remains predictable. SBY is known to be a deliberate, measured perhaps overly cautious leader. With such strong mandate, this is his opportunity to make profound and meaningful impacts both politically and economically. Suharto brought prosperity to Indonesia under different terms. SBY now has his chance to bring prosperity under his term.

World Problems

2009-08-03T07:47:00.001-07:00

The early twenty-first century carries with it both the promise of the future and the complexities of living in a seemingly unsustainable world with H1N1, terrorism, financial credit crunch and global warming. The devastating terrorist attack in Jakarta last Friday on 17/7 and the bombing in Mumbai on 26/11 last year are sad episodes and they will not be the last. The complicity of terrorism is beyond Jemaah Islamiah, India and Pakistan or Israel and the Palestinians or North Korean leader Kim Jong-il holding sway of the world with its nuclear threat. Whichever way, global instability, death, starvation, reactionary extremism and fundamentalism are just signs to a larger problem.
Terrorism is not a real threat to the lives and livelihoods of billions. Global warming will someday, through mankind’s contrivance and genius, right itself through innovations, sheer grit and determination.
It is about oil money where politics are deeply implicated and religions are mixed into its potency driving people to self destruction. The challenge is how to untangle the unholy trinity of oil, politics and religions and whoever has the key to untangle this will solve a great part of the world’s problem.
This challenge is certainly and infinitely more difficult than a Da Vinci’s Code.

My Own Adventure in Business - Beneficiary of a Meritocratic System

2009-08-03T07:45:00.000-07:00

Personally, I benefited from Singapore’s entrepreneurial ecosystem. Against the wisdom of the crowd , I graduated in 1994 and went straight to start my own business. I founded more than 10 businesses since.

To me, superstars of businesses are propelled not by genius and talent alone but the beneficiaries of extraordinary opportunities and seasons that allow them to strive, to make sense of the world in ways other cannot comprehend. Most of the entrepreneurs I know of are outliers in their fields or the barbarians at the gates who redefine the norms and rules of the industries. I have witnessed how successful people rise on a tide of advantages like MMI, JIT, Venture or even Hyflux who immensely benefited from the period of manufacturing boom in the 90s. Even our water-resource strain has produced a Hyflux who benefited from this demand gap.

The Singapore business ecosystem evolves, particularly, public policies which play an important role in stimulating and accelerating the pace of developments in certain sectors. The government seems to have a hand in shaping the desired industries and in picking the sunrise and sunset businesses. For that, some alleged that Singapore’s entrepreneurial ecosystem has been uniformly weak for start-ups or even backward. The key is to pick the right type of business to start in Singapore where the business can leverage on the strength of Singapore’s infrastructural, financial, political strengths. Connecting the red dot to other hinterlands and making Singapore into hubs of sorts will be a good starting point.

The power of guts is not taught enough in schools and for now, many of the successful self-made businessmen in Singapore can attest to that. I have been the beneficiary of various windows of opportunities and I know that the impulse factor has been key- some of us play it safe while others risk it all. I chose to risk it all when I started and had never look back.

Financial Prudence - Intervention of the Invisible Hand

2009-08-03T07:43:00.000-07:00

President Obama’s overarching hand, no longer the invisible hand of free market, on the entire financial system will be closely watched as it was deemed that a culture of irresponsibility took root from Wall Street to the Main Street.

One of the most striking aspects of his intervention was his increase in the volume and velocity of money supply in the economy. His government’s policy response to the crisis is to stabilize the confidence and to thaw the credit stalemate that crippled the entire US economy and affected world’s confidence. The domino effect brought devastating consequences to many economies. With the overhaul, they are looking to speed up structural adjustments.

The crisis which was magnified by the shakeout in the subprime mortgage market alongside the toxic CDOs and other derivatives were not properly understood. These weaknesses were due to a lack of transparency in management, inadequate supervision of banks and financial institutions.

In Singapore, whilst the subprime mortgages cause a precipitous drop in asset prices in the US, the effect is not as acute in Singapore. In fact, there was a stabilization of HDB prices which held up well in the heat of turmoil. Singapore’s banks are regulated in a conservative framework and the issues of indiscriminate credits extension are limited.

Whether it is DBS High Notes 5 and Merrill Lynch Jubilee Series 3 products, they have limited impact on most investors in Singapore and even for those who were affected; MAS stepped in and provided stern warning to banks to resolve any misrepresentations with certain groups of less sophisticated investors. There is also a Financial Industry Disputes Resolution Centre (FIDReC) for further mediation. Such acts are enough said of a responsible MAS.

Any ambitious reforms to the Singapore’s financial system may end up prompting more, not less, interventions by MAS. For so long as MAS set up a framework with sufficient monitors and safeguards with constant scanning of macro risks in the ecosystem, Singapore may be better off this way with a steady hand prompting and cueing markets than one that directly intervene in the market mechanism.

Point is -the hand should not be invisible when a crisis is imminent.

Strategies for Singapore

2009-08-03T07:42:00.000-07:00

The strategists shaping Singapore of the future have to focus on one central question. How do we play up our geopolitical convenience and centrality within Asia and to capitalize on our stable infrastructure to become hubs for education, healthcare, pharmaceutical, clean-energy and technology innovation or any innovations that can become our core economic pillars?

Our small physical size belies our great economic strength and resilience. We can be that small heart connected to all parts of Asia through different veins and arteries forming different supplies chains for critical industries.

I think our approaches to go China whether is it the Suzhou Industrial Park, Tianjin Eco-city or Nanjing Eco-Island or the Indonesia-Malaysia-Singapore growth triangle or the Singapore-Johor Iskandar Development Region, they are all part of our hub-hinterland growth strategy. We go the hinterlands to enhance economic competitiveness with exploitation of comparative advantage, economics of scale and clustering. We exploit synergies with the different countries from geographical proximity and economic complementarities.

Forming transnational economic zones and regions will extend Singapore’s physical space and resources so that we can grow beyond Singapore. Collectively the whole of Asia will give us a larger market and consumer access.

The push for a larger hub-hinterland framework must be hinged on Singapore playing a lead in the supply chains- be they in pharmaceutical research and development or in cleantech innovations.

To be credible, Singapore should be a living demonstration and test-beds and be the vanguard of knowledge creation for example in cleantech solutions. The world is moving into the cleantech space, including cleantech clusters and industries. Singapore should quickly leverage our strengths in systems integration and implementation. With governmental leadership we can differentiate ourselves, including developing globally distinctive cleantech parks.

China and India are giants and they are already among the world’s top carbon emitters. They need clean technologies – energy-efficient buildings, renewable energy sources, alternative energy, clean water and waste management and recycling. They are our hinterlands of opportunities.

Combining capital, people, technology with a supportive government, I am sure we can work towards a successful hub-hinterland framework. With China and Indonesia or even Malaysia, we are standing on the shoulders of giants to win in this world.

Human Capitals

2009-08-03T07:39:00.000-07:00

Any sensible companies will tighten up and re-look at any frivolous expense lines and most importantly to strengthen their governance practices and delivery of top and bottom lines in the wake of any crisis. While company performance and in particular staff performances in the years or even months leading up to the turmoil is the subject of debates, company performance is critical now as it needs to respond to the financial market turmoil and the global recession so as to stay afloat with its nose above water. Almost everyone’s nose will be wet and the financial crunch must mean that most pockets will be affected.

Attrition by selection due to poor performance or due to higher expectation is normal for times like this. Either staff is not doing what is expected of them, or the expectations of staff is far too high as they may have to take on multiple job roles and function possibly with lesser support. I think that both scenarios are possible and the mental and physical well-being of these staffs must be strained to a greater or lesser extent and there will be no way out of water without getting your nose wet. Personally, I think we need to create company-level governance and compensation structure that allow for flexibility and at the same time without creating conflicts in the performance and pay equation.
The structure of running a sustainable business will mean that companies need a radical overhaul and also to manage the attitudes and competence of the individual staff. In particular we need to create a structure that fosters challenge in crisis without creating conflict and fear. To keep the company afloat and inevitably to ensure that the pockets are not hit badly is the responsibility of all of us, not just the management or the board. The natural herd instinct in crisis is to run away from source of problem which is flight or to stand guard to fight.
The real challenge is to get the herd together to run in the same direction with sufficient motivations, monetary or otherwise.

Any More Interventions by MAS Needed?

2009-07-05T03:59:00.001-07:00

Going Green Cost

2009-07-05T03:52:00.000-07:00

Going green has a price tag. Question is “Who is paying?” Whether the mantra calls out for the protection of earth or it is about a “Green Recovery” or “Green Revolution”, it must begin with a mindset shift. No matter how much technology, policies or a Kyoto Protocol defining a framework for environmental treaty, if the Green Economics does not make sense, it will be a hard struggle for businesses.
Our environmental problems originate in the hubris of imagining ourselves as conqueror of earth but as it seems we have become a cancer on nature with global warming and pollution getting awry and out of control. Somehow, with the advent of technology and ever increasing demands for oil, we are seeing some ruination of our eco-system and depletion of our own resources. It does not matter if the oil price spiked at over $140 a barrel or at today $70 a barrel, it does not dent the need for consumption. Consumption, nonetheless, but just hard to swallow.
Will the go-green efforts go the extent to disregard business economics and be operable even at higher costs? For so long as it make long term economic sense, to the top and bottom lines of companies, whether is it consumer demanding the green effort or is it the awaking of the corporate consciousness, the effort will be pursued.
On the brighter side, the Green Economics seems to have developed a certain momentum with the stimulus, subsidies and protectionism for green energy in US. Even China is taking a different tact with the building of more eco-cities to lead the Green Revolution. President Obama’s push for American’s industries to develop new kinds of energy and technologies will eventually pay off – both monetary and environmentally. It is now left to be seen how the momentum will gather pace to ensure that everyone, from governments to consumers, will have that green mindset. Green initiative can be implemented anywhere and by anybody.
Humanity is definitely on the march and I hope that our earth itself is not left behind.
___

Economic Strategies for Singapore

2009-06-14T18:45:00.001-07:00

Work Life Balance in Recessionary Times?

2009-06-14T18:42:00.000-07:00

The current economic recession heightened many workplace pressures and gave rise to a sense of long-term job insecurity and loss of general well-being. During good economic times, issues of work-life balance roll off the lips of HR practitioners and it is a must-have for the contest of talents, brains and brawns. In this climate, it may seem frivolous to talk about work-life balance since it is on the backburner and in fact may be a “kiss-of-death” if asked

Given the difficult economic times, many people are feeling the pressure to work harder than ever. Yet, whatever the climates, I think many companies still demonstrate fairness and equity when it comes to discretionary work-life arrangements. However, I am not surprise if we hear more and more people saying they are under pressure from employers and their families to keep up, often at the cost of life balance. In really depressed time, when companies are restructuring and examining every expense item, it is unavoidable if the cuts at the welfare and staff benefits are ferociously deep. If the company is going to the extent of layoffs and reorganization, which puts even more pressure on employees, how can they in the same breath talk of work-life balance?

The pains in any recessionary contraction are felt everywhere but companies can adopt flexible working practices largely to try and retain those within the organization who escape the blades of cuts and retrenchment. Their morale, motivations and productivity are at the abyss. Family friendly practices may not be firm policies but discretionary practices. Like giving unpaid day-offs or sabbatical leave for parents to spend more time with family with the assurance of keeping their job when they return or allowing the employees to pursue SPUR courses to improve their skills and competencies. They are ad hoc arrangements to accommodate individual circumstances. Small firms’ preference is for informality and they are means of developing employee commitment and retaining valued staff although they rarely formed part of an explicit employee commitment strategy or precedents.

As of now, there was a conspiracy of silence when it comes to family-friendly work life balance -for obvious reasons.

Welcome, life's toil! In this hard, harsh times;
who dare ask of work-life balance;
that work to be done still multiplies all the time.
With retrenchments taking tolls, bonuses in furnace!

I pity those who sit down belaboring and repining,
Bound in idleness, belabored the world has done him wrong;

That such plight should not befall him, always opining;
what life should have been __for empty days are long.

For those whose mental frames are right, their lives on a mission;
Whose work is never hard and it is always “Can!”
Accepting tasks that spring from any conditions__
Doing, as best they can, the work at hand.

Welcome, life's toil! In this hard, harsh times;
Never ask for more than is given;
Economic rhythm will return to its peak time
O’ bonuses will no more be shaven!

Singapore-Malaysia Relationship

2009-06-02T08:53:00.000-07:00

The beauty of “Dendrobium Najib Rosmah” named after Malaysian Prime Minister Najib and his wife Datin Seri Rosmah, lies in its mixed heritage. The hybrid orchid plant symbolizes the sharing of bonds of kinships and friendships between Singaporeans and Malaysians.

The relationship has not always been marked by constant bloom of flowers so beautiful in its hues and colors; it is occasionally left to wither because of difficult relationships on issues like water, bridge and rails and the Pedra Blanca.

Singapore and Malaysia with a historical link and bounded by common history will mean that for any synergy to be meaningful for both sides, we need enduring and predictable relationships between the governments. Cooperation must be based on a multi-faceted level - bilaterally, regionally and internationally.

Our bilateral trade was more than S$110 billion in 2008, accounting for over twenty percent of total trade within ASEAN and the flow of Singaporeans to Malaysia is a staggering 11 million visits last year. Both countries are globally plugged to the world with their export oriented economies vulnerable to any global uptick or downturn. We must rely on an open and stable neighborliness for us to grow in each other turfs with free flow of trades and investments.

Whether is it in Iskandar which can benefit both our countries we should have many bridges, definitely not crooked one, to spur investments across our porous borders. The point is to really create a special economic corridor with freer access of capitals and people. Magic can happen.

Pragmatism must prevail and the benefits must flow both sides. With that common understanding, synergies can be tapped and maximized for mutual benefits and growth. We must grow into each other to become larger than what we are singly to eventually merge into an integrated ASEAN framework where multilateralism will be in full play. A big dream for a small country.

Dendrobium Najib Rosmah, painstakingly made;
Tis’ an orchid of no ordinary heritage.
Like Singapore and Malaysia link by common history
Kinships and friendships with many colorful stories.
Relationships is not borne out of that flower;
Our ties are forged through trials and fire,
Difficult as it sometimes may, we’ll put our mind together
With a new Prime Minister Najib, we’re to write a new chapter
Confidence, trust and comfort
Comes from both sides in joined effort
Holding common stakes
Joined by the same fate
Let us be linked by the many bridges that be built
Our destinies by closeness of shores be sealed
Let the common strait and a common corridor
Flow with capital, people and prosperity for all.

Dancing in Steps in the Recession- Companies and Staff

2009-05-25T16:16:00.000-07:00

The Principle of Punctuality

2009-05-17T15:30:00.000-07:00

Those whom I know who's always delay,
And to always procrastinate;
Never to be reliable and pushing affairs day to day
Never responsible and do things late.

The successful one always let every hour be in its place
A time fixed is firm and should not frivolously shift,
The successful one's hands are always full but still enough time and space
To do things right, on time and in a jive.

And when the hour arrives, be there,
Never be late.
It shows the haphazard state of mind and lack of care.
What's gone is gone - every minute and hours whatever date.

Always to be before your appointed time,
than be sometime behind;
Punctuality says much about a person and his life
A principled person with a beautiful and punctual mind.

Let punctuality and care
Seize every flitting hour.
Opportunity waits for no man but one who dare
Be sharp, be punctual, be wise and never dull.

All Signs Pointing Up- Is this a Real Bull Charge?

2009-05-17T15:27:00.001-07:00

Is the crisis really averted since we are seeing emerging up-trends on all the global indexes? The temptation is to follow the bull’s tail and smell and charge ahead but that is dangerous. Personally, I suspect that this rebound is a bear-market capitulation or “selling the bottom”. With the STI rebounding more than 50% since early March is enough to bring cheers to stock chasers.

Those of us who are deep in the water will hope that confidence is finally restored and that any market gains will be more enduring instead of those gyrations we see with each economic data releases like plunging export sales or growing retrenchment numbers. All eyes shall be on the earnings and guidance announcements and macroeconomic indicators in the first half of 2009. With that, we should have better visibility on whether the prescriptions of fiscal and monetary dosages and injections by the Fed is working up the confidence level to eventually see the thawing of the credit markets and consumers’ confidence in US. Any positive upturn there will have ramifications for an ultra-sensitive Singapore since we are so globally plugged.

I see a range-bound market with more upside than downside down the road and it is walking the fine balance of participating in this rally while watching for any pull-back and if the market does show some signs of flagging, my gut feel is that it will not fall through to the March’s trough.

No need for crystal ball gazing or some tea leave reading, I am just betting my guts that we are about to have some fresh air and I am not holding my breath anymore.

H1N1 Fears

2009-05-11T07:40:00.000-07:00

All of humanity is under threat and markets around the world will seize up. God forbids but if the spread escalates into the global pandemic phase characterized by community level outbreaks, there will be a quick succession of market disturbances with the World Bank estimating that the pandemic can cost $3 trillion and resulting in 5% drop of GDP. This time, the world at large responded swiftly to this outbreak but the emotional fear still cannot be allayed with any assurances of stockpiles of drugs and vaccines. Though there were prognostications of the worst of developments with this outbreak, I think the scenario is still highly fantastical though the effect of any the outbreak is painfully relatable with Sars. We have to get over the single most terrifying human fear.

Precautionary measures have already been installed and the Singapore government has put up all the necessary frameworks to ensure that any possible propagation of the H1N1 can be checked with a disciplined tracking system. This is an opportunity for national and global solidarity as concerted responses are now seen across countries from China to the US. This is a public health emergency of international concern and the world will have to watch how the fight between H1N1 and mankind will pan out after all the possible precautionary measures are adopted with quarantines and contact tracings.

At the end, it is just hold on to our sanity as the outbreak is too large for any nation to bear and the H1N1 too small for us to be too scared. As one doctor told me, “Wash your hands as frequently as you can.”

From Mourn to a New Morning

2009-05-05T07:16:00.000-07:00

Every year for the last 10 years since 1999, my good friend Mike will write poem to his beloved wife Rosie and publish a poem a year. Today is the 10th year of her passing and in today's Straits Times, it appears once more.

I read his poem with a tinge of sadness and a sense of forlorn hangs over me. A grieving friend who has lived in the long shadows of his beloved wife.

I share his loss and grief and pen my sentiments in the loving memory of Rosie,

The seasons have come and passed;
Your constant yearning and memory of Rosie will forever last.
Those winters have been long and the coldness bites;
I am sure Rosie will like to see you in a better light.
All the sorrows, pains and anguishes mysteriously melt
As long as in God's Hand you submit, they'll be dealt
Be strong and move on to your next mission.
For this life you live, live well with a passion.
Ten years has passed, ten summers of heat and ten winters of cold;
Enough sufferings, reminiscing and recounting;
In God's Land, Rosie is watching over you;
Pining that you'll live strong and live life with its many hues.
From mourn to the new morning;
Open your eyes, a new dawn appear before your eyes
A new dare, a new hope, and bid all yester-years good byes!

Michael, in memory of your wife Rosie

Directorships - Hands too Full?

2009-05-05T07:14:00.001-07:00

How many directorships are too many? Normative advice would emphasize the importance of limiting the number of directorships any individual should hold due to the workloads and responsibility they entail. The burden of holding directorships is still onerous notwithstanding the size of the company or whether they are dormant or not.
Typically, we do see directors who serve larger firms and boards are more likely to attract directorships. So is it a case of “A Few Good Men” on the merry-go-round serving many boards? Or is it a case where directors are luminaries or well-known public figures put on boards with little roles except to lend credence to the companies?
The impact of multiple directorships on corporate diversification is real and may affect the quality of oversight and thus influence the degree of their contributions to the companies’ values. Specifically, I find that directors’ busyness is inversely related to his or her contribution to the companies’ value. In other words, companies where board members hold more outside board seats are likely to have the directors suffering attention deficit especially if they are nominated to sit on sub-committees that have oversight roles. The negative effect of having overcommitted directors on the board cannot be discounted and in fact must be more pronounced in listed public companies where they are put under the spotlight during crisis or at any extraordinary meetings.
I am not suggesting that multiple directors shirk their responsibilities to serve on board committees or that multiple directorship are associated with a greater likelihood of neglect, collegial group-think or lapses.
Too Busy to Mind the Business? Is it really a case of a few good men or women for the jobs? Whether we deal with one hand or the other hand, we still only have 10 fingers to have a grip on the cards we want to deal. So long as the cards are not drop, all things will be well.

Betting on Singapore Property

2009-05-05T07:13:00.001-07:00

The volatility of the property market has shown signs of abatement and if there is any restoration of confidence, we'll increasingly see the "bet-on-prime" phenomenon. The price sensitivity of these tier 1 high end property in Orchard road will generally has a greater price elasticity in terms of rebound.

Other factors like the lower SIBOR rate will mean lower and cheaper mortgage rates which will in turn spur investors' appetite for property in Singapore - which over the long term will surely climb back from the low floor. Simple reason is with the scarcity of land coupling with a burgeoning population, land price can only shape up. I personally believe that the property market will remain buoyant with bargain hunting and a bottom out of prices will likely come at the second or third quarter. Generally, property in Singapore will unlikely lose its lustre for too long a time.

China's Resilence

2009-05-05T07:12:00.000-07:00

While most of the world economies are convalescing and convulsing in intensive care with a global financial heart attack, the Chinese government’s $880 billion stimulus defibrillated the Chinese weak heart -bringing life back to the economy though not a strong “V”-shaped recovery is to be guaranteed.
The Chinese economy has already had its hard landing with China’s growth grinding to the slowest pace in a decade with Q1 growth sinking to 6.1%. China’s growth may have slowed but its growth is still on track unlike major economies in US, Europe and Japan which are contracting. Chinese economy is benefiting from the government’s aggressive monetary and fiscal stimulus. Given that most strategic sectors are centrally controlled by the government, stimulus measures should take effect more swiftly with actions taken to redirect growth towards more sustainable path of domestic demand, as well as plans to improve social safety nets such as healthcare reforms- all do bode well for the economy. The health of China’s banking system compared with the mayhem and bloodshed in key western economies helped it weather the storm. China’s banks were largely unscathed by the financial turmoil mired in complicated derivatives and toxic assets. The country’s economy had been holding up despite taking a hard hit. With the central government spending on health, education, infrastructures like roads and power grid and social safety, the stimulus being broad-based will uplift China when the high tide returns.
China still has its own risks. A major risk is the high rate of unemployment accompanied by its nascent and weak social safety regime, unrest may be brewing. While migrant worker unemployment is a pervasive problem, the leadership fears to a much greater extent the possibility of widespread student unrest leading to social problem that may destabilize the political stability.
The central government has all the economic levers at its disposal and to mobilize all its institutions - central government, local governments and the entire banking system - to boost government-influenced investments. China’s new lending surged more than sixfold from a year earlier to a record 1.89 trillion yuan ($277 billion) in March, adding to signs that growth in the world’s third-biggest economy is gathering pace though it is left to be seen how some of these allocations may be misappropriated and may lay in non-performing loans.
How these forces play out would also determine the shape of recovery in 2009-10 – that is, whether it will be a sharp, V-shaped affair, or something more drawn out.

Balancing Recession with Headcount Cut

2009-05-05T07:11:00.001-07:00

It is a foolhardy way for companies to cut their way out of a recession, especially human capital resources. It is a no-brainer way to resource planning. A consistent fixture in most of these successful companies is their communications – articulating a clear vision of the future so that everyone “gets it” and can move on with the companies.
These messages are people-oriented and they elicit honest feedback from the ranks and files. Such communication ensures that the companies are focused on building and sustaining high engagement with their employees. Morale will be high since there is a strong promotion of inclusiveness during bad times even though it may mean having their pay cut or work week shorten.
It is a matter of attitudes, feelings and emotions that makes work enjoyable and ignites people's energy to do more than they thought they could. It is about creating that atmosphere of success even in difficult times and they can see their journey with the companies. Great employers of choice understand the numbers, but they also touch people's hearts.

Love the People with All You Can

2009-03-21T20:59:00.001-07:00

In all our volunteerism effort, we always have to find that determining reason to want to help or to reach out to the people. Why do people spend the countless hours doing volunteer work reaching the ground, helping the poor and hapless and be mostly unreciprocated and sometimes abused and scolded?
It must be something from within that spur any volunteer to action. I captured these panels of etched teachings from the Korean palaces. It is taught to the kings. I found that the teachings captured the essence and the very reason for volunteerism, except that volunteerism does not rule.

Having Great Aspiration with Conviction

2009-03-21T20:58:00.001-07:00

2009-03-21T20:57:00.001-07:00

2009-03-21T20:56:00.001-07:00

2009-03-21T20:54:00.001-07:00

Teachings for the Kings

2009-03-21T20:53:00.001-07:00

Helping Those from Hand to Mouth

2009-03-03T16:41:00.000-08:00

Training, upgrading and re-skilling will help a certain portion of the low wage earners but we know through MPS that some of these workers are not trainable nor have the momentum to live through the training as they see their career as start-stop types. They are either medically unfit or aged or because of family commitment, they cannot hold down to any long term job.

They are left behind with no CPF, no medical coverage, no savings. Only a meager hand-to-mouth mean of living.

NTUC should consider setting up a low wage contract and casual workers deployment agency to work on placing such workers to receptacles - companies hiring on contract basis. Commercially these are being done by outsourcing agencies and the high levy imposed by the employment agencies lessen the amount of take-home pay of the workers. Usually for contract staffing of low wage workers, agencies charge from $7.50 up and usually pay the workers from $5 onwards and without any benefits and CPF.

NTUC can set up a model with no profit incentive and allow workers to take home more pay with accompanying CPF, portable medical benefits and a sort of insurance for their life-long saving. Once the momentum and structure is setup, NTUC may start training workers in e2i suited for direct placement of jobs into companies without having to train and wait for placement with third parties agencies. With the service industry seeing a growth by next year, such contract and casual staff are needed to augment permanent staff and most restaurants/ retail/ hotels like to keep skeletal staff and augment them with casual and contract workers.

NTUC together with WDA have done much to help train, skill, re-skill but the last mile is in the engagement and meaningful employment and after that to provide a holistic cover for CPF, medical coverage and savings.

Tightening the Tap on the Flow of SPass- a Boon for Singaporeans

2009-02-27T16:00:00.000-08:00

All incoming taps must be recalibrated to regulate the flow of talent and foreign workers and the control of the SPass is one of those taps. It is a sensible and reasonable move considering that the aggregate job supply will contract with massive job losses especially in the categories of PMETs.

The next 2 quarters of 2009 may see one of our steepest job losses and the possible retrenchment of more PMETs who are better qualified and skilled, will add to the upward momentum of unemployment. SPass was initially mooted in an era of boom where qualified technicians and workers are in shortages and this category of workers are the sandwiched layer between those holding Employment Pass (EP) and Work Permit (WP). The scheme provided great hiring impetus as Singapore was growing and we need all the skilled human resources to compensate for our lack of it in Singapore. They are mostly skilled in the technical areas like in the constructions, manufacturing and offshore and marine industries. The service industry also has its fair proportion of SPass workers over the last 2 years.

1. Raising the bar and entry requirements for new incoming SPass workers inevitable will tightened the tap and unless the employers can show cause that the skills needed are exceptional and lacking within our pool of, increasingly large, jobless Singaporeans, then those foreigners who now enter into our job markets must have those needed skills. Those SPass applicants in the service industry will likely be hardest hit as these jobs are easily replaceable by Singaporeans with training if needed. The learning curve for such skills like sales, marketing, retail merchandizing or even administrative and accounting functions are not as steep as those in the technical areas like safety supervisors, construction foreman or commissioning superintendant where specific technical qualifications are needed.

The employers can pay Singaporean $1800 to do the same job and still enjoy the Jobs Credit from the government. For those skills like customer service or those in the hospitality areas, the jobless Singaporeans especially the PMETs can easier pick up the training subsidy and be trained for the new jobs. In short, SPass workers for the service industry are likely to be screened tighter and the window for them will be smaller so long as the jobs are considered replaceable by Singaporeans.

2. We deal with the hard industries like offshore and marine and manufacturing and these are where specific technical skills are required and where SPass workers are most needed.

3. Experienced die and mold makers, autocad designers, R&D engineers, commissioning foreman and superintendant, safety engineers and other technical positions are not easily replaceable and if the skills have steeper and longer learning curves, it is unlikely that the unemployed PMETs can easily fit into the profile. The job market is already under extreme duress and across most sectors from manufacturing, offshore and marine to construction and the supply of jobs are unlikely to grow to give more employment to the jobless Singaporeans. Apart from skill-based needs for SPass requirements, employers used to have problems hiring Singaporeans for jobs requiring irregular working hours with split and shift works. This "attitude-based" aversion to such jobs in the retail and customer service, hospitality and healthcare can be shifted with the power of hunger to have a change of hearts. With ample training opportunities and the re-structuring of work contents, these jobs may power up the next leg of our economic restructuring which is the service sector.

There are no quick or easy fixes to this crisis and the SPass flow regulation is one of the many ways for MOM to preserve more replaceable jobs for Singaporeans. It is inexcusable and irresponsible for employers to get foreigners in if unemployed Singaporeans, especially the PMETs who are capable for the jobs and may be willing to take a lower pay, be denied the opportunities. I think the issue is about attitude on both sides of the equation. The employer attitudes which must be a willing employer and for as long as any jobless Singaporeans can perform the role, notwithstanding his last job position or experience or even pay. The jobless Singaporeans', especially the PMETs, attitudes must be to pare down expectations with a view to gain new experience. If the equation can balanced off, our employment situation in Singapore cannot be worse off.

Enough Help?

2009-02-26T06:58:00.000-08:00

Close to $91 billion loss for the combined investments of Temasek/ GIC is frightening. Is that about almost 4 times of what the total Budget proffered to Singapore to help lift us up from the dire economic situation.
Are they sunk and not recoverable? Those assets, including shares in UBS are deeply under-water to be meaningful. Our investment in ABC Learning from Australia went belly-up. Most assets classes, of all types from property to shares to all derivative instruments are steeply discounted. Whether actualized losses or paper losses, they are still huge losses, by any measures and no matter who is counting, it is still painful.
Grappling with today's economic woes is quite slippery. I read the Wall Street Journals and together with the broad mix of periodicals, I get the feel that even major governments from Aso, Brown to Obama are experimenting different prescriptions to see if they can lift the monumental weight of today's crisis. I do not get any sense of confidence or relief because the more I read, the more fearful I become. Our government, notwithstanding, is trying to figure a way out of it. In the same vein, I believe the senior executives of Temasek and GIC are planning different scenarios to recalibrate those loss investments and to park them in defensive investments and at appropriate time to grow them again. It may be painful but it has not run aground like in Iceland where the entire country economy bankrupted. Look around - Malaysia, Thailand, Korea, Japan or Indonesia.
Are we doing better than the rest? I think we are. Most of those Asian countries are looking at us to see how we are coping and emulating certain policies.
The Great Depression of 2009 is really beyond you and me. As far as we are concerned, we have to live each day seeing how the marco-level events pan out and to see how it will affect us and our competitiveness.
For those needing help at MPS, help will be rendered to make sure that Singaporeans are not left without food, without opportunity for a job, without access to medical care. I have seen old parents being abandoned by children who turned up at MPS for help. These are the pockets of Singaporeans where outreach must be swift and quick. I saw tears in resident who was worried sick because he could not pay up the medical bills with chase letters. We seeked for deferment and at the same time to apply for social assistance. I saw residents who skipped their mortgage payment because they have lost jobs. We asked for deferment of the mortgage. We saw some parents, children in toll come to MPS for help because their father were imprisoned, sicked or jobless and there were little food left. These are local issues we deal with every week to ensure that residents like these received help. They are not forgotten.
For those who do not come to MPS, we go to them through house visits.
Those of us who can commit time, notwithstanding the political platform, can do the same. I have deep admiration for Chiam See Tong who win unwavering support from his constituents despite the many allures from PAP and this just shows proof that his single minded dedication pays off. It is not about upgrading, it is not about resources, it is really about the care he gives and attention given to his constituents. His MPS at the void deck is sparse but work still get done. Quietly and it works. Chiam See Tong is not verbose, full of high ideals on democracy or what is democracy but he worked the ground, grinding away faithfully solving local concerns.
I think this should be the way for opposition to win the hearts and minds of the electorate - genuine care for local issues. They may be small - neighbour quarrels, dirty corridors or an application for a bursary. It is gruelling work as it means going doors after doors, knowing the people and getting help to them.
以民同行。

My loyalty is first and foremost, to the people of Singapore. It has always been so, and will always remain so

2009-02-26T06:56:00.001-08:00

I was in Nanjing for a long time this February for business and in one of our conversations with my colleagues I was asking about 岳飞 of the later Song period. 北宋末年，深受民族压迫的汉族、契丹族、渤海、奚等各族人民，"仇怨金国，深入骨髓"，纷纷自动组织起来反抗。The Hans were persecuted by the minority tribes and they were deeply sore with hatred. All his life, he was fighting for a single cause 精忠报国 - to serve his country with single-minded dedication and to unify his country. 收复故土，统一祖国的强烈愿望和要求。

He was willing to lay his life down for his country much to the admiration of the latter generations - not what he did then because he defied the emperor's edict to return from the battleground and insisted on fighting the enemy pushing them near defeat. Many distanced themselves from this apparently recacitrant general and some called for his execution because of his defiant. 诏书下了三次，岳飞都加以拒绝，不受开府仪同三司(一品官衔)的爵赏和三千五百户食邑的封赐。他在辞谢中，痛切地表示反对议和："今日之事，可危而不可安，可忧而不可贺。"并再次表示收复中原的决心，"愿定谋于全胜，期收地于两河，唾手燕云，终欲复仇而报国。"这无异于给宋高宗当头泼了冷水，从而更使赵构、秦桧怀恨在心。"但岳飞不顾个人得失，坚持抗战到底的立场，率领军队，联络北方义军，卓有成效地从事抗金战争，筹划收复中原、统一祖国，成为全国抗金民族战争中的有力支柱。

Our past President Ong's words: "My loyalty is first and foremost, to the people of Singapore. It has always been so, and will always remain so." warms my heart and he'll be judged on his merits, contributions, dedications and loyalty to Singapore. Many of us, I believe, share my sentiments.

I mused at the political dancing by opposition parties of all hues and colors. So much posturings like wearing kangaroo T-shirts and decrying the lack of democracy. I wonder who they truly represent? I am not sure if they have an inking of the type of democracy or the kind of country they wish they will want to live in? If the opposition takes a more people-centric approach like Low Thia Kiang and Chiam See Tong who truly walk their grounds and know the constituents, PAP will have a hard contest since it is the battling with the hearts and minds with genuine care and love for the people. Hearing Sylvia, I am convinced she is mostly logical and a Singapore-loving person as I am. Having said that, as in all political powers, the incumbent will ensure its survival and mindshare sustainability with the electorate and will work itself against all opposing forces. Then the challenge to the opposition really will be - win us if you can.

Whatever the outcome or the slate the opposition may wish to put up, it must always be done for the love of the people and 岳飞 steadfast loyalty and dedication to his country is admirable.

精忠报国的精神，以民同行。

Losses at Temasek and GIC- Take things in Perspective

2009-02-20T01:50:00.000-08:00

The losses in GIC and Temasek were quite regretable and in fact alarming. The combined losses is almost equivalent to 5 times of Citigroup's net worth today.

Almost every major banks of repute, be they in US, Switzerland, London, Germany, Paris or anywhere else, they suffered brutal onslaught because of their exposure, small or large, to sub-prime or some complicated derivative investments. Hedge funds, private equities and funds of all shades see their investment declining at unbelievable rate. Unless traders properly time their shorting of markets, not many players, large or small, banks or funds, government or individuals are spared from the financial fallout.

Temasek and GIC may not have buck that trend and like the many who suffer from the financial meltdown, there was a write-downs on loss investments. Of course we are certain that going forward, there will be preservation of the funds and Temasek will position its money for the next phase of growth. The strategy now is not growth but defensive investment to preserve what is left. There is a proper time to make money and now it is not that time.

To put matter in perspective and to give some measure of support to Temasek and GIC, our hundred of billion of investment did not magiccally materialize as it mysteriously disappeared. It was not God-sent. It was painstakingly built up to become a respectable reserve. Whether those sovereign funds are from Abu Dhabi or from Dubai, they were similarly hit, if not worse off than Temasek.

The meltdown affects everyone with Madoff's Ponzi scheme crippled because of the lack of fund to pay forward to those who invested their hard-earned money in the Lehman's products in Singapore.

Almost every one is hit and it is really only how blue or black they are.

Crowing of Dissents by the Same Crows

2009-02-19T22:06:00.000-08:00

Everytime I try to square off with reasons those arguments put up by the dissenting voices of Gopalan Nair or Chee Soon Juan, who openly decry the lack of democracy and that the ruling party is a dictatorial regime, I cannot reconcile their patriotism and their ideals for Singapore.

After reading thread after thread of their discussions and watching their videos on Youtube, it does touch some heart strings and I must admit that it does not offer any real and practical solutions to issues like the low-wage workers' issues or joblessness in Singapore or to manage the traffic congestion in Singapore except to ask for abolition of ERP.

There are many things the oppositions can do to garner the support of civil-minded and reasonable electorate. They can genuinely represent the cause of Singaporeans in a certain district or special interest groups like disabled or children with special needs. There are so many issues that need help. The latest one will be the Lehman's linked investment products which Tan Kin Lian spoke on behalf for. He would have represented a cohort of Singaporeans affected by the sad saga and those affected will become his main constituents if he genuinely lends his helping hands. There are also avenues for the oppositions to meet the people and to organize like-minded, Singapore-loving individuals to come together to help those in needs. Meet the Peoples Session run by the PAP is not a natural outreach program by the party. It is run by volunteers with a deep conviction that they want to help residents solve their problems. Few people these days will have the time or convictions to volunteer on a political platform particularly since the day-to-day tasks of meeting residents is knocking on doors and explaining policies or provide a empathetic ears to their woes and to see what help can then be rendered. This is grueling hard work that calls for dedications and commitments.

Has the opposition got the necessary gumption to put up like-minded men and women who can walk the ground and help the residents with their woes. Democracy, freedom of speech, linguistic discussion on nepotism or autocracy are over-the-head notions for these folks. They want help in organizing themselves. They may have fallen into credit card problems or with kids needing assistance in school because of the demanding school curriculum. Or they may need some short-term financial assistance to help them get through a difficult period. The oppositions can similar gather sponsorships and helps to render to their constituents to win their support.

If none of those are forthcoming from the opposition, it will not be hard to see why the discerning voters will want to vote for them. Unless the opposition can form the next government, their strategy cannot be to govern but to provide the alternative voices to a section of Singaporeans who voted for them and to help them in their everyday lives and to ensure sustainable living. They are to provide the checks on the government policy excesses or spending irrationality. The tact should be to win seat after seat, hopefully, in closer proximity to form a larger geographic coverage. Political lines, all over, old and modern are drawn on north-south, east-west divide.

The opposition must evolve to become better or they cannot forever go on berating PAP for their lack of democracy or freedom of speech. Many governments have already run their countries aground by lack of vision or not displaying strong leadership and any political meadering will only mean that Singapore will fall back to the pits like in the snake-and-ladder game. We are far too small to be always in political contemplation on what we are to become or what state of democracy we want or how much liberty the opposition want.

Opposition parties in Singapore must rise up to offer new options to Singaporeans and stay on firm ground of reasons and rationales. Win the hearts and minds of the people. Don't beat your chests and cry foul.

Oppositions in Singapore unite if you can.

Interview on Hiring Slow Down

2009-02-19T21:30:00.000-08:00

1. Fresh graduates face a grim and uncertain job market as a global slowdown seizes the worldwide economy. Increasingly companies are taking a wait-and-see attitude and pending how the first half of 2009 will turn out, many positions are either frozen or curtailed for austerity and cost cutting reasons. For those fresh graduates, the buffet of job choices will also be limited since many industries are going into tailspin especially the manufacturing and financial industries.

The retrenched workers under 30s are not unique. We know of companies doing top rightsizing at the senior management level to drastically cut cost leaving their subordinates to take over role which may cost less than half what their bosses used to be paid. Hence for this season of job losses, the collateral damages is more widespread and deep and it cuts at all levels. Non-performing individuals will be cut and those holding on to their jobs will see themselves embracing more roles, functions and responsibilities.

To get a job is difficult and the job search can last between 1-3 months now especially in the first quarter because of CNY effect (general slowdown in businesses and lackadaisical work pace) and how the last quarter of 2008 has affected the overall mood of business. On a seasonally adjusted, annualised quarter-on-quarter basis, real GDP fell by 12.5 per cent in fourth quarter of 2008 which is a serious dampener.

The slowdown in manufacturing and financial sectors coupled with the credit crunch will spread to the domestically-oriented segments of the economy, such as property, retail, service and business service leaving job seekers with poorer prospects. Sectors which are hiring are in the transport service sector, offshore and marine and some niche R&D engineering areas as far our order books are concerned. Rest of the industries are in limbo state.

Pay and employment terms will see some adjustments and job-seekers should be more amenable to such changes as the absorption of such job-shock will bridge them to another possibility and opportunity. Job seeker can consider cross industry move or functional role change.

2. Increasingly companies are also hiring on temporary basis even at management level since they want work done but stay clear of further commitment to workers in uncertain times. Temporary and contract job generally will increase as this is a natural way to steer clear of entitlements and benefits costs at such uncertain times. Job seekers should not see this as an assault to their professionalism or that such interim job arrangement will not lead to any good. They should consider them as long as the job contents fit their skills.

3. The shoot up of unemployment for those in the 30s should not be exceptionally high as I see a more broad level cut which will be wide and deep and will cut through many levels including senior management. Hence it is not age specific.

4.Having more restive young who are unemployed will be disastrous like China with its billion population is struggling with their unemployed graduates. The impacts will be both at the societal and political dimensions. China has more than economic reasons to fear surging graduate unemployment which at the end of 2008 about 1 million of that year's graduates had not found work. In Singapore, the effect is somewhat lessened but nonetheless painful. The government encouraged the embarkation of tertiary education and many paid steeply for their degrees especially those private students. Graduating without a prospect of job will be exasperating for them.

Hopes

Like dreary dreams or rude awakenings
What is really happening?
The night seems so long; many a dream wreaked
Hoping for a light; when will the day break?
To this mad, mad world
Turning all so cold.
Jobs are scarce and fears run wild
Trepidation made confidence turned sour
Will it be me?
Or when will my turn be?
Preemptive retrenchment or whatever it will be
Pray it will not be me.
My Singapore dream has slide from hill to hill
Falling so low and falling still
Will the end be near?
I feel so sad and drear.

Be not afraid so the guru said
In hard and harsh time, heroes are made
The world still belong to those who can adapt fast
This time is bad but it will not last
Unlearn, adapt and relearn new skills
That will lead you to the new hills
Where you can see that the sky is still vast
Over the low hill there are still green grass

Interview on Shorter Work Week to Cut Cost

2009-02-19T21:28:00.000-08:00

The shorter work week is a necessary step to institute for some companies having excess labor or manpower so that they may stretch their dollar longer whilst withstanding severe lack of business or demands.

For companies undergoing severe shortage of demands or dry pipelines, manpower deployment is a topmost priority as it may drain cash flow and affect the sustainability of the businesses. When machine times are down, companies contend with depreciation and loan costs. For excess labour, it is a pure drain if the resource cannot be deployed where they are most productive. Along the spectrum of options, before any consideration of retrenchment, companies must surely consider the unsavory option of shortening workers' work week so that they may still have a job while the companies stretch the dollar. Also, some companies may have trained their labor resources for specific roles and to immediately release them when there is a down time may mean that the workers may join competitors - so it may be done in the name to retain talent.

Over-riding concerns for such measure as shortening work week must be to conserve cash flow and to stretch the dollar.

What may be the better thing to do for such idle labour? The government is providing a whole battery of up-skilling and re-skilling programs for PMET and the rank-and-file so that they may take this time to learn and relearn. Such effort may be costly for the government but it does spur the workers and an upgraded worker may be worth more than he was before. This, however, is premised that the bad times do not last more than 2-3 quarters otherwise, no amount of training will be meaningful if the general economy slumps with low demand and a general lacklastre in all major industries - from manufacturing, construction, healthcare to services.

I have seen a case where a child care teacher belaboring her low pay wishes to take the opportunity to explore a new career in hospitality and with a plethora of courses available subsidized by the government, she can now go to re-skill and on an upswing, she may embark on a totally new career path with a casino.

In better times, shorter work week work best for working mothers who prefer to spend more time at home while remaining productive in the workforce and it is in the name of better work-life balance.

Jobs Credit - Does it Really Help?

2009-02-04T08:42:00.000-08:00

This time in the Parliamentary discussion on the Jobs Credit, I found Low Thia Khiang’s persuasions compelling. He pointed that it may not be the only kind of tool the government can use to tackle the crisis.

Since it represents the main plank in the overall scheme of help, I must admit that Jobs Credit seems to tilt towards a supply-side initiative with the subsidy working more for the employers. For the average Singaporeans in general, the trickle down benefits may be less obvious though clearly all Singaporeans are saved from a CPF cut. With a cut, ramifications may be deeper since many Singaporeans rely on their CPF to pay mortgages.

In certain angle and perspective, the Jobs Credit is a blunt tool that cut across all employers, MNCs and SMEs, profitable and unprofitable and it benefits all companies absolutely blindly. In a certain way, this help will seem untargeted. The $4.5 billion must really save many jobs and assuming 100,000 jobs are saved, each job saved cost the government $45,000. The maths becomes more staggering if 50,000 jobs are saved, the cost to government is $90,000 per job saved. Again, if we are to look at the jobs saved, what is the average salary for those who lost their job? If we are saving those who are earning on average $2500 a month, for an entire year, their salary is $30,000 a year. Compare this to how much the government pays to save a job. The maths just does not add up, if we examine from this angle. From another angle, if the companies are really in deep trouble and on the brink of collapse because of cash flow, 3 months collection of a wage subsidy will do little to help. Will that really put companies to re-think? Yes, for a short term, they may hold off but in a longer run, if a trim of idle resources is necessary it must not be allowed to fester as it may become cancerous and unsustainable for a business. It is unreasonable for government to expect companies to hold off retrenchment when it does not make business sense to keep idle resources.

Agreed, that the $4.5 billion is to be used to spur companies to refrain them from retrenchment and for them to have help through wage subsidy for a year. However, the problem of saving the companies who are already doing poorly as a result of poor demand and dry pipelines cannot be saved with a wage subsidy. Poor demand for business will still persist if the macro-economics do not improve. Question therefore is will help applied directly and pointedly to those who needs it be better than applied broadly to all including some who may not need it.

As the argument goes, there is probably more ways the government can think of to help those average Singaporeans who really lost their jobs and by putting cash directly to help them may spur consumption. Nonetheless, the Jobs Credit is still a laudable measure, exceptional for a time like this one.- unforgettable. The help given to companies, small and large, profitable and unprofitable should not become forgettable.

Why Party White?

2009-01-30T08:30:00.001-08:00

I like to marvel at old photos especially those in the 60s or 70s and to see the stark differences of the then Singapore and what we have today. While at the Marina Barrage on a weekend, I come across a series of old photos which set me thinking. I saw old pictures of PAP ministers and MPs sweeping floors in some campaigns or at the beach picking litters with their entourage of supporters.

I also noted that most of the ministers and MPs were in their white and white signature color of PAP. They stand out among the entourage of people and very clearly, I supposed that whiteness shined through the masses. Whiteness signifies purity and integrity and it is on that platform the Party stands firm on. In the period of late 50s and 60s, the distinction to PAP is important as we need to carve a mental impression in the mind of the electorate as these were turbulent times, with literal mess and corruptions, and that PAP must prevails against all other distractions of the times.

As we become the incumbent party in the national politics, we are seeing less and less of the white and white because we do not wish to be seen. Some claims that the Party White made them look like school boys, while other shied from the white-white because it is uncool. Probably, I am reminiscent of the past but I think white-white is the best signature of our Party and it should be visible every time we are in our rounds - be it in market or house visits and key functions. The clutters and distractions are even more in this era of internet connectivity and the more the Party should take one of the many avenues to show the constituents that we are after all still the same party, holding the same values of purity and integrity.

Let us stand up in white and be counted.

Do We Really Want to Help All in the MPS?

2009-01-30T08:29:00.001-08:00

Meet the People Session is really for PAP to have an outreach to its constituents. For the politicians who is manning the Meet the Peoples' Session, as long as they are our constituents in the division, an extended hand is also given - sometime given in clenched fist, sometime open but never to push away a hand. Clenched because the constituents are asking with unreasonableness.

I have seen cases where a man of 50s asking for more social benefits as he claimed that the $250 a month is not enough for him since he has to smoke a pack a day. How is the case dissimilar to the middle class man asking to keep his maid and car. Only in magnitude but the same unreasonableness prevails.

We try to help each night a week, cases, some of which are very genuine and really in need of help, some of which are really mundane, petty requests and some totally unreasonable. We'll deal deal with them, one on one, case by case - with empathy.

Our Future, Our Dreams, Our Hopes

2009-01-10T22:36:00.000-08:00

Though our economy is set to flow
Today’s grim state made people’s morale low
In the PAP, each plays our part
At MPS, we go console the hearts
Telling the broken hearted
Or those with visions shrouded
That help will be rendered
Surpluses, O’ our treasury cannot be plundered
just to save the few
but help is rendered to those deserving their due;
Homeless and those who are ill
will not be burdened with high bills
Mean testing or not
Singaporeans will not be forgot
At rising tide,
And rising above the hillside
A dragon lies along its slope
On his ascent, giving new rays of hopes
Then the dreams of men of herds
with hopes like the soaring birds
will pray and wish
That our sea of opportunities is filled with fish
Enough for all
Striving and thriving for more
For we shall build, a cosmopolitan and a great city
Away from the gloom, doom and self pity (of today)

Singaporeans' Cries

2009-01-10T22:24:00.000-08:00

Singaporeans’ Cries

O desolate!

When will our shivers abate?

O desolate! Is this the same of 1929?

80 years on, the financial meltdown of 2009!

How much cringes and pains we can endure further?

One infliction after another

Unemployment reigning high

So many of our unemployed cry and sigh

Reform, we must and be amendable

Our frame of mind, attitude must now be flexible

Expectations must be managed and be ready to spur

Upgrade for long term and not short spurts

Otherwise, we’ll be blown with the dust.

I see showers bringing rainbow

though strong winds still coldly blow

Most of us standing quivering

with fear of unemployment or how we are recovering

Sing nothing of good old days

Because seasons come and pass away

It is easy to pile up sorrow new

And cry of days now out of view

Crying with our voice shrill and high

And strain all days our eyes

What can we do from day to day?

But to chase our fears away

The fickle wind still blows

Confidence in ourselves must silently grow

2009: Singaporean Fresh Graduates Face Grim Prospect in Global Slowdown

2009-01-10T07:17:00.000-08:00

1. Fresh graduates face a grim and uncertain job market as a global slowdown seizes the worldwide economy. Increasingly companies are taking a wait-and-see attitude and pending how the first half of 2009 will turn out, many positions are either frozen or curtailed for austerity and cost cutting reasons. For those fresh graduates, the buffet of job choices will also be limited since many industries are going into tailspin especially the manufacturing and financial industries.

The retrenched workers under 30s are not unique. We know of companies doing top rightsizing at the senior management level to drastically cut cost leaving their subordinates to take over role which may cost less than half what their bosses used to be paid. Hence for this season of job losses, the collateral damages is more widespread and deep and it cuts at all levels. Non-performing individuals will be cut and those holding on to their jobs will see themselves embracing more roles, functions and responsibilities.

To get a job is difficult and the job search can last between 1-3 months now especially in the first quarter because of Chinese New Year effect (general slowdown in businesses and lackadaisical work pace) and how the last quarter of 2008 has affected the overall mood of business. On a seasonally adjusted, annualised quarter-on-quarter basis, real GDP fell by 12.5 per cent in fourth quarter of 2008 which is a serious dampener.

The slowdown in manufacturing and financial sectors coupled with the credit crunch will spread to the domestically-oriented segments of the economy, such as property, retail, service and business service leaving job seekers with poorer prospects. Sectors which are hiring are in the transport service sector, offshore and marine and some niche R&D engineering areas as far our order books are concerned. Rest of the industries are in limbo state.

Pay and employment terms will see some adjustments and job-seekers should be more amenable to such changes as the absorption of such job-shock will bridge them to another possibility and opportunity. Job seeker can consider cross industry move or functional role change.

2. Increasingly companies are also hiring on temporary basis even at management level since they want work done but stay clear of further commitment to workers in uncertain times. Temporary and contract job generally will increase as this is a natural way to steer clear of entitlements and benefits costs at such uncertain times. Job seekers should not see this as an assault to their professionalism or that such interim job arrangement will not lead to any good. They should consider them as long as the job contents fit their skills.

3. The shoot up of unemployment for those in the 30s should not be exceptionally high as I see a more broad level cut which will be wide and deep and will cut through many levels including senior management. Hence it is not age specific.

4.Having more restive young who are unemployed will be disastrous like China with its billion population is struggling with their unemployed graduates. The impacts will be both at the societal and political dimensions. China has more than economic reasons to fear surging graduate unemployment which at the end of 2008 about 1 million of that year's graduates had not found work. In Singapore, the effect is somewhat lessened but nonetheless painful. The government encouraged the embarkation of tertiary education and many paid steeply for their degrees especially those private students. Graduating without a prospect of job will be exasperating for them.

Hopes

Like dreary dreams or rude awakenings

What is really happening?

The night seems so long; many a dream wreaked

Hoping for a light; when will the day break?

To this mad, mad world

Turning all so cold.

Jobs are scarce and fears run wild

Trepidation made confidence turned sour

Will it be me?

Or when will my turn be?

Preemptive retrenchment or whatever it will be

Pray it will not be me.

My Singapore dream has slide from hill to hill

Falling so low and falling still

Will the end be near?

I feel so sad and drear.

Be not afraid so the guru said

In hard and harsh time, heroes are made

The world still belong to those who can adapt fast

This time is bad but it will not last

Unlearn, adapt and relearn new skills

That will lead you to the new hills

Where you can see that the sky is still vast

Over the low hill there are still green grass

2009-01-10T07:14:00.001-08:00

As in all new year, I'll get contemplative and reflective and I like to share my musings on what came and what is to come.

I have a favorite song by Baz Luhrmann - Everybody's Free (To Wear Sunscreen) that almost always inspire me whenever I hear it. It talks about walking the journey and not regretting. We are at a times when the world is looking bleak and everyday when we flipped the newspapers, it made us worried about tightening credits on car loans or some large car companies in US imploding big time. Or you walk around seeing people sighing about the bad economy or pundits quoting that our Singapore economy will contract 2% in 2009 and daylight will not be seen through the year.

Click here to see the video.
Click here to see and listen on youtube. http://www.youtube.com/watch?v=sTJ7AzBIJoI

If I could offer you only one tip for the future, wear your sunscreen and sit tight would be it. Enjoy the moment where oil price plunge to below $40 a barrel and your electricity bill to be cut by 25% next January. Your package of rice may not be as expensive as 6 months ago and that you can buy a COE for $2. This are unprecedented times and we are living in the age where many years later, generations will talk about this like in 1929. Wear your sunscreen and do not look at the glare of bad and sad news because that will only bring you down.

Don't worry about the future; or worry, but know that worrying is as effective as wishing that it does not rain after you give your car a nice wash. Start to be prudent now and you may pick good bargain prices now with some equities or things of value which may make you richer when the times improves. This is like mah-jong game where the wealth at the table is being redistributed at each throw of dice. Sometime you win, sometime you lose but the money moves around. Probably to the smarter ones who know when and where to buy and wealth will go their way.

There are not many windows of opportunity to strike it. Most of us probably have never seen Citi's price hitting at $3.77 or GM trading at $2.79. These are trying time and to the braves, this is the time to charge.

Do one thing everyday that scares you

Don't waste your time on jealousy; sometimes you're ahead, sometimes you're behind…the race is long, and in the end, it's only with yourself. Take this time to reflect, re-organize and map out your life. 20 years later, you may regret that you did not capitalize this moment to do sometime big.

Don't feel guilty if you don't know what you want to do with your life now…the most interesting people I know didn't know at 22 what they wanted to do with their lives, some of the most interesting 60 year olds I know still don't.

Congratulate yourself that we are born in a momentous times - with the financial melt-down that equals if not worst then 1929 and that US has its first black president Barack Obama.

Brother and sister (I learn this from Lim Swee Say) together we'll make it through and 10 years later when we look back, at least we can say that we are a part of this important tract in history.

This is the season to get to know your parents, you never know when they'll be gone for good. Be nice to your siblings; they are the best link to your past and the people most likely to stick with you in the future.

Understand that friends come and go,but for the precious few you should hold on. Work hard to bridge the gaps because the older you get, the more you need the people you knew when you were young.

Accept certain inalienable truths, prices will rise, politicians will philander, you too will get old, and when you do you'll fantasize that when you were young, prices were reasonable and cheap, politicians were noble and children respected their elders. Even if this nightmare of a financial meltdown is affecting us, it can only be a long nightmare. Day will break and when we open our eyes, the sun will still rise and we'll realize that it will be a beautiful day as long as we can always have a beautiful mind.

So take this new year to love your elders, siblings and friends.