According to a Straits Times report, average sales value of both resale and new condos crossed the S$1 million mark in Q2 this year.
You wonder who's snapping up these homes when the government reported that median household income in 2010 was just S$5,000. This figure is also likely to be skewed as Permanent Residents are kneaded into the calculation. So the actual income is in all likelihood, lower than the figure published.
Without a strong and independent Press, our politicians will continue to use statistics as a smokescreen.
Indeed, a publication by the World Bank describes how a free press is no longer a luxury but essential to equitable economic development.
In an effort to revitalise the nation (and win votes), Malaysian PM Najib promised to review press controls and media censorship. Following his speech, there are even calls to totally abolish such stifling laws.
Will PM Lee ever do the same?
Will we ever find out the actual standard of life of Singaporeans and Singaporeans alone?
The PAP has always played the "housing value" card whether at elections or a Sunday luncheon.
MM Lee continues to forewarn that without the PAP, our housing value will fall. The former Minister Mentor even went so far as to challenge Aljunied GRC voters to compare the GRC's housing values with Opposition run Hougang estates.
Unfortunately for him, they didn't listen.
In 2002, there was a study by IMF covering 16 OECD nations that claimed that rising housing prices have positive effect on consumption. This would be music to our ministers' ears.
Bearing in mind that the sample size consisted mainly of developed states in Europe and North America, does the study apply to Singapore?
A Singapore Management University faculty member, backed by the Wharton-Singapore Management University Research Centre did her own study using Ministry data and rejected the findings.
This paper claimed that rising housing prices did not create wealth effect. Rather, there was some evidence to say that "house price increase appear to have a dampening effect on aggregate consumption".
One implication of this is that "policy makers should treat housing wealth as distinct from other assets when considering the impact of wealth on consumption".
Put simply, rising housing value does not necessarily mean that standard of living is improving or that Singaporeans spend more.
One key reason could be that unlike the OECD countries studied, many Singaporeans have their retirement savings wiped out by housing loans.
Another possible reason is the relative low purchasing power of Singaporeans caused by stagnant wages and a general lack of subsidies on anything from petrol to healthcare. This is confirmed by the widely circulated UBS Prices & Earnings Study.
Thus, it will be interesting to know who are the ones buying those million dollar properties.
What's pretty clear, not all are Singaporeans.
Monday 26 September 2011
Friday 23 September 2011
Wheels stop spinning on Circle Line
Back in June, I wrote about the unacceptable performance of SMRT. The company 54.3% owned by Temasek Holdings and a listed entity at the same time, is putting shareholders' interest above passenger welfare. Thousands of commuters have endured breakdown after breakdown while the company's executives continue to seek fare increments year after year.
Earlier this week, they went one better when the entire Circle Line, that's 16 stations in all, stopped functioning for hours leaving an estimated 20,000 commuters stranded.
In the Philippines, the Aquino government raised fares on certain lines after a year of deliberation. The reason for the fare increase is justifiable due to a decade of heavy subsidies and loss making. SMRT is an extremely profitable venture. In fact, it returned record dividends to shareholders in 2010.
Don't get me wrong. Many transport operators around the world are listed too. The difference is that there is zero competition for SMRT in Singapore.
The company will continue to suck more from commuters and pay fat cheques to their executives and shareholders.
It was reported this morning that Transport Minister Lui Tuck Yew has asked for a probe into this mess. If it ends up in the customary fine, which some claim is akin to passing money to the Land Transport Authority and back to government coffers, nothing will change, as history will tell us.
It's not enough to probe at the gums...the decaying tooth must be extracted.
Especially when the incident comes hot on the heels of a second graffiti faux pas just last month.
Heads must roll, leaders made accountable.
Last December, Northern UK experienced one of the worst winters ever, causing travel chaos in Scotland forcing its transport minister to resign.
Resignation is not a sign of shirking responsibility. It's a gesture that acknowledges accountability and accepts that someone else could do the job better.
Minister Lui was spotted "going undercover" taking the MRT during peak hours. I wonder what his response would be if he was personally stuck in the Circle Line.
Earlier this week, they went one better when the entire Circle Line, that's 16 stations in all, stopped functioning for hours leaving an estimated 20,000 commuters stranded.
In the Philippines, the Aquino government raised fares on certain lines after a year of deliberation. The reason for the fare increase is justifiable due to a decade of heavy subsidies and loss making. SMRT is an extremely profitable venture. In fact, it returned record dividends to shareholders in 2010.
Don't get me wrong. Many transport operators around the world are listed too. The difference is that there is zero competition for SMRT in Singapore.
The company will continue to suck more from commuters and pay fat cheques to their executives and shareholders.
It was reported this morning that Transport Minister Lui Tuck Yew has asked for a probe into this mess. If it ends up in the customary fine, which some claim is akin to passing money to the Land Transport Authority and back to government coffers, nothing will change, as history will tell us.
It's not enough to probe at the gums...the decaying tooth must be extracted.
Especially when the incident comes hot on the heels of a second graffiti faux pas just last month.
Heads must roll, leaders made accountable.
Last December, Northern UK experienced one of the worst winters ever, causing travel chaos in Scotland forcing its transport minister to resign.
Resignation is not a sign of shirking responsibility. It's a gesture that acknowledges accountability and accepts that someone else could do the job better.
Minister Lui was spotted "going undercover" taking the MRT during peak hours. I wonder what his response would be if he was personally stuck in the Circle Line.
Thursday 15 September 2011
MP sitting on the floor
Many PAP Ministers like to sit.
None more so than Ang Mo Kio GRC's Yeo Guat Kwang, who in addition to his cushy MP seat, sits on the board, panel, council of 64 other organisations!
Even Superman can't be in 65 places at the same time! So he's either short-changing these 64 organisations or the Singaporeans that elected him into Parliament. Go figure.
Some others like to sit on piles of cash. Despite his hearty monthly MP allowance and fat pay cheque from NOL, Pioneer SMC's Cedric Foo gives out $4 ang paos!
Nothing wrong with that except that the dude's filthy rich.
Then there are those that like to sit on pressing issues. Health Minister Gan Kim Yong is apparently dragging his feet to reform nursing homes after the well publicised shocking abuse of an elderly patient by foreign nurses at a home, claiming that "these are long-term issues that will require very careful analysis and understanding of the impact".
Careful analysis? Some poor old woman got abused... I don't know how much more straightforward it gets.
In contrast, a certain other nobody, well actually a member of the Worker's Party's Aljunied GRC team, sits unassumingly on the floor in effort to mingle with residents. So much so that the politicised People's Association decided it was better to kick this MP and his fellow colleagues out of most public spaces so they have nowhere to sit.
Now with one of their own sitting on the President's throne, it remains to be seen if the 81 PAP MPs can descend their ivory towers and sit among ordinary Singaporeans.
Oh by the way, the nobody MP is a chap called Chen Show Mao.
None more so than Ang Mo Kio GRC's Yeo Guat Kwang, who in addition to his cushy MP seat, sits on the board, panel, council of 64 other organisations!
Even Superman can't be in 65 places at the same time! So he's either short-changing these 64 organisations or the Singaporeans that elected him into Parliament. Go figure.
Some others like to sit on piles of cash. Despite his hearty monthly MP allowance and fat pay cheque from NOL, Pioneer SMC's Cedric Foo gives out $4 ang paos!
Nothing wrong with that except that the dude's filthy rich.
Then there are those that like to sit on pressing issues. Health Minister Gan Kim Yong is apparently dragging his feet to reform nursing homes after the well publicised shocking abuse of an elderly patient by foreign nurses at a home, claiming that "these are long-term issues that will require very careful analysis and understanding of the impact".
Careful analysis? Some poor old woman got abused... I don't know how much more straightforward it gets.
In contrast, a certain other nobody, well actually a member of the Worker's Party's Aljunied GRC team, sits unassumingly on the floor in effort to mingle with residents. So much so that the politicised People's Association decided it was better to kick this MP and his fellow colleagues out of most public spaces so they have nowhere to sit.
Now with one of their own sitting on the President's throne, it remains to be seen if the 81 PAP MPs can descend their ivory towers and sit among ordinary Singaporeans.
Oh by the way, the nobody MP is a chap called Chen Show Mao.
Monday 12 September 2011
Reinvention
As the PAP's soul searching continues 4 months after the party's most disastrous poll performance, PM Lee Hsien Loong is urging his careers first, country second, politicians to "reinvent" themselves.
The word "reinvention" normally has a positive spin to it. The Internet reinvented the way people connected and. Apple reinvented the cell-phone into a lifestyle accessory. Lady Gaga reinvented fashion...just kidding.
Then he continues "to anticipate and counter attempts to score political points by those who do not want us to succeed; and to gain recognition for the good work of the Government."
Two things can be inferred here
1) That people voted opposition because they don't want PAP to succeed
2) PM Lee still feels this current government has done good work
Firstly, people voted opposition because they want Singapore to succeed. This is another example of how PAP politics puts party above country. Remember numerous party members chanting "Majullah PAP" during elections?
Secondly, as long as the current generation of leaders continue to live in fantasy world and believe they have been performing well, there will be no reinvention.
There will only be repetition. Repetition of the same old party serving policies.
Case in point, the PAP is now using research carried out by the Institute of Policy Studies (IPS) to justify the need for this relentless influx of foreigners. The paper made Nobel prize-worthy discovery that our population will decline without migration. It somehow also generated a mind-boggling 48 different population scenarios, far more elaborate than Paris Hilton's social life.
Oh by the way, the IPS is chaired by the venerable Lee Kuan Yew himself.
Falling birth rates is common in many developed nations. Western European countries are no different.
Nordic countries like Sweden and Norway have managed to raise their birth rates close to 2. (2.1 is the universally accepted rate for a population to replace itself). Some of the common features of their success include:
Contrast with PAP run Singapore:
Like a gambler going for broke, the government then imports inordinate amounts of foreigners to boost population growth. This turns the rat race into a sprint so most Singaporean couples just don't want the burden of raising kids.
Further, who does rising population growth really benefit?
Singaporeans?
Unless you call these benefits:
1) Stagnant wages
2) No job security
3) Rip off housing prices
4) Expensive healthcare
5) Elusive CPF savings
6) Overcrowded public transport and spaces
7) etc
Population growth benefits the PAP.
Let's take a look at the commonly used equation for GDP.
GDP = private consumption + gross investment + government spending + (exports − imports)
GDP is the holy grail for our ministers. It not only determines their bonuses, it also masks the real story behind the country's standard of living so long as GDP keeps growing.
As you can see, the more people there are on this island, the more private consumption increases.
When the Indian national eats at a food court, that contributes to private consumption.
When the PRC masseuse buys a bar of soap, that contributes to private consumption.
So you can see why the government will never accept falling demographics.
Still, there is one reinvention that is more powerful than the rest.
The reinvention of our political landscape is the key to how Singapore survives the next 50 years.
40% of the populace have reinvented themselves and given us these.
Reinvention is cool.
The word "reinvention" normally has a positive spin to it. The Internet reinvented the way people connected and. Apple reinvented the cell-phone into a lifestyle accessory. Lady Gaga reinvented fashion...just kidding.
Then he continues "to anticipate and counter attempts to score political points by those who do not want us to succeed; and to gain recognition for the good work of the Government."
Two things can be inferred here
1) That people voted opposition because they don't want PAP to succeed
2) PM Lee still feels this current government has done good work
Firstly, people voted opposition because they want Singapore to succeed. This is another example of how PAP politics puts party above country. Remember numerous party members chanting "Majullah PAP" during elections?
Secondly, as long as the current generation of leaders continue to live in fantasy world and believe they have been performing well, there will be no reinvention.
There will only be repetition. Repetition of the same old party serving policies.
Case in point, the PAP is now using research carried out by the Institute of Policy Studies (IPS) to justify the need for this relentless influx of foreigners. The paper made Nobel prize-worthy discovery that our population will decline without migration. It somehow also generated a mind-boggling 48 different population scenarios, far more elaborate than Paris Hilton's social life.
Oh by the way, the IPS is chaired by the venerable Lee Kuan Yew himself.
Falling birth rates is common in many developed nations. Western European countries are no different.
Nordic countries like Sweden and Norway have managed to raise their birth rates close to 2. (2.1 is the universally accepted rate for a population to replace itself). Some of the common features of their success include:
- About 12 months of paid leave for working mothers
- Weeks or months of paternity leave, in some cases mandatory
- Generous if not full subsidies for state run child care
- Flexible work schedules
Contrast with PAP run Singapore:
- Mothers get max 4 months paid leave
- Fathers get a total of 6 days childcare leave, subject to time spent at current employment
- Average subsidies in place but mothers must work for at least 56 hours per month. Close to none for non-working mothers
- Flexi hours exist in Singapore???
Like a gambler going for broke, the government then imports inordinate amounts of foreigners to boost population growth. This turns the rat race into a sprint so most Singaporean couples just don't want the burden of raising kids.
Further, who does rising population growth really benefit?
Singaporeans?
Unless you call these benefits:
1) Stagnant wages
2) No job security
3) Rip off housing prices
4) Expensive healthcare
5) Elusive CPF savings
6) Overcrowded public transport and spaces
7) etc
Population growth benefits the PAP.
Let's take a look at the commonly used equation for GDP.
GDP = private consumption + gross investment + government spending + (exports − imports)
GDP is the holy grail for our ministers. It not only determines their bonuses, it also masks the real story behind the country's standard of living so long as GDP keeps growing.
As you can see, the more people there are on this island, the more private consumption increases.
When the Indian national eats at a food court, that contributes to private consumption.
When the PRC masseuse buys a bar of soap, that contributes to private consumption.
So you can see why the government will never accept falling demographics.
Still, there is one reinvention that is more powerful than the rest.
The reinvention of our political landscape is the key to how Singapore survives the next 50 years.
40% of the populace have reinvented themselves and given us these.
Reinvention is cool.
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