Sunday, August 9, 2009
Van for Aug 22
I need a volunteer to provide a van for transport on 22 August. Please contact me at kinlian@gmail.com.
My life insurance policies
Dear Kin Lian
I am insured with NTUC. Seriously. I am naive and ignorant, how I should address my concerns (of the poor return) to the management board? Do you still have NTUC policies?
REPLY
I had about 15 life insurance policies during my time with NTUC Income, including policies taken for my children. Many of them have matured. Some were transferred to my children.
I cancelled four whole life policies (on my life) during the past two years, due to the reduction in bonus rate and the increase in management expenses. As I am past 60, I do not need the insurance protection.
I am insured with NTUC. Seriously. I am naive and ignorant, how I should address my concerns (of the poor return) to the management board? Do you still have NTUC policies?
REPLY
I had about 15 life insurance policies during my time with NTUC Income, including policies taken for my children. Many of them have matured. Some were transferred to my children.
I cancelled four whole life policies (on my life) during the past two years, due to the reduction in bonus rate and the increase in management expenses. As I am past 60, I do not need the insurance protection.
I have only a few investment linked policies left. I shall cancel them at the right time.
Insufficient savings? No wonder with poor insurance returns
Published in Forum Page, Straits Times on Aug 10, 2009
Many life insurance policies taken today require more than 15 years to 'break even'. This is the point where the cash value of the policy is more than the premiums that were paid over the years.
During this period, the insurance company must have earned more than 40 per cent on the premiums that have been invested. As an actuary, I know that the real cost of providing life insurance cover is about one-quarter of the gain. The remaining three-quarters are used to pay the agent's commission and expenses, or retained as orphaned money, as pointed out by Mr Haverkamp.
If the orphaned money is distributed to the policyholder, as suggested by Mr Haverkamp, the return would at least have been slightly better.
In recent years, consumers have been given a poor deal on their long-term savings in life insurance policies. A careful study of the Benefit Illustration will probably bring out this point. But the Benefit Illustration is difficult for consumers to understand and needs to be explained by an insurance adviser, who tends to skim over the negative points.
This is similar to the situation with the prospectuses issued for Minibonds and other credit-linked notes.
If consumers are given a poor return on their long-term savings in life insurance policies and other financial products, and in many cases they actually get a negative return, is it a wonder why many Singaporeans do not have sufficient savings for retirement after many years of hard work, thrift and savings?
I call on life insurance companies and financial institutions to reconsider their roles and responsibilities to provide a fair deal to consumers, as they strive to make profits for their shareholders. I hope the Government will also review this unsatisfactory situation in Singapore.
Tan Kin Lian
I AGREE with the views expressed by Mr Larry Haverkamp in his letter last Thursday, 'Policyholders underpaid?'.
Many life insurance policies taken today require more than 15 years to 'break even'. This is the point where the cash value of the policy is more than the premiums that were paid over the years.
During this period, the insurance company must have earned more than 40 per cent on the premiums that have been invested. As an actuary, I know that the real cost of providing life insurance cover is about one-quarter of the gain. The remaining three-quarters are used to pay the agent's commission and expenses, or retained as orphaned money, as pointed out by Mr Haverkamp.
If the orphaned money is distributed to the policyholder, as suggested by Mr Haverkamp, the return would at least have been slightly better.
In recent years, consumers have been given a poor deal on their long-term savings in life insurance policies. A careful study of the Benefit Illustration will probably bring out this point. But the Benefit Illustration is difficult for consumers to understand and needs to be explained by an insurance adviser, who tends to skim over the negative points.
This is similar to the situation with the prospectuses issued for Minibonds and other credit-linked notes.
If consumers are given a poor return on their long-term savings in life insurance policies and other financial products, and in many cases they actually get a negative return, is it a wonder why many Singaporeans do not have sufficient savings for retirement after many years of hard work, thrift and savings?
I call on life insurance companies and financial institutions to reconsider their roles and responsibilities to provide a fair deal to consumers, as they strive to make profits for their shareholders. I hope the Government will also review this unsatisfactory situation in Singapore.
Tan Kin Lian
Harrassing the wrong people
On my return from Batam, I had to go through security check at Harbour Front. My bag had to be screened. The mobile phone has to be placed in a separate tray.
On passing through the metal detector, there was a beep. So, I had to be screened. I had to empty the wallet, keys, pen from my pockets. Many questions were asked. I only had two hands, so it was quite difficult to be holding the passport, wallet, keys and other items.
After being passed as "not carrying weapons", I collected my luggage and left. Ten minutes later, I realised that my mobile phone was missing. I had to go back to recover it.
I hope that our security officers realise that a traveller has only two hands, and that they had to take care of many things. It is not necessary to give so much hassle to the travellers, who are returning home.
The security officers are only carrying out their duty, as written by the top leaders. The top leaders (i.e. government minters and civil servants) are given VIP treatment, so they do not have to go through the hassle that lesser mortals had to endure.
I know that it is important to have security measures to ensure that terrorist do not smuggle weapons into Singapore. Are we harrassing the wrong people in the process?
In most other countries, the security officers exercise their discretion and do not follow the rules by the book. If someone (like me) does not look like a terrorist, they do not subject this person to the same detailed check.
But, in Singapore, everything goes by the book and is implemented blindly. It requires our top leaders to experience the inconvenience personally, before they change the rules. And the top leaders are trapped in their ivory towers, surrounded by security guards, and receive ground reports from underlings who only convey what they wish to hear. (Sigh). This is Singapore!
Tan Kin Lian
On passing through the metal detector, there was a beep. So, I had to be screened. I had to empty the wallet, keys, pen from my pockets. Many questions were asked. I only had two hands, so it was quite difficult to be holding the passport, wallet, keys and other items.
After being passed as "not carrying weapons", I collected my luggage and left. Ten minutes later, I realised that my mobile phone was missing. I had to go back to recover it.
I hope that our security officers realise that a traveller has only two hands, and that they had to take care of many things. It is not necessary to give so much hassle to the travellers, who are returning home.
The security officers are only carrying out their duty, as written by the top leaders. The top leaders (i.e. government minters and civil servants) are given VIP treatment, so they do not have to go through the hassle that lesser mortals had to endure.
I know that it is important to have security measures to ensure that terrorist do not smuggle weapons into Singapore. Are we harrassing the wrong people in the process?
In most other countries, the security officers exercise their discretion and do not follow the rules by the book. If someone (like me) does not look like a terrorist, they do not subject this person to the same detailed check.
But, in Singapore, everything goes by the book and is implemented blindly. It requires our top leaders to experience the inconvenience personally, before they change the rules. And the top leaders are trapped in their ivory towers, surrounded by security guards, and receive ground reports from underlings who only convey what they wish to hear. (Sigh). This is Singapore!
Tan Kin Lian
Investor to share experience on BBC
BBC is doing a series of global reports on the anniversary of the Lehman collapse. They are to do an "authored report", ie someone affected by the collapse in some way, talking about their experiences.
If you are interested to be interviewed by BBC, please send an email to kinlian@gmail.com. You can request the BBC not to use your real name, but to write about your experience.
Apart from talking about how you were misled into the investment, you can also talk about the months of agony earlier with the financial institution, FIDREC and MAS.
If you are interested to be interviewed by BBC, please send an email to kinlian@gmail.com. You can request the BBC not to use your real name, but to write about your experience.
Apart from talking about how you were misled into the investment, you can also talk about the months of agony earlier with the financial institution, FIDREC and MAS.
Sale of my books
An unemployed person posted a question - can he sell my books and earn a commission. If you are interested, send an email to kinlian@gmail.com.
It is quite easy to sell my books. I sold 10 copies during my trip to Batam, just by showing people how to solve the shapes in the Shape Quiz book.
It is quite easy to sell my books. I sold 10 copies during my trip to Batam, just by showing people how to solve the shapes in the Shape Quiz book.
Prudential Yield 15/20 (2)
Someone posted a comment that the Prudential 15/20 is similar to the Great Link Choice. Can policyholders of this product give feedback on:
a) The structure of the product
b) Does it guarantee against the failure of a certain number of CDOs
c) What is the current value of the various tranches of this product?
a) The structure of the product
b) Does it guarantee against the failure of a certain number of CDOs
c) What is the current value of the various tranches of this product?
FACTBOX: Jobless benefits vary around the world
With increasing numbers of people put out of work in the recession, here is a look at the unemployment benefits offered in the United States, Britain, France, Germany and Japan. Read this article.
Nominations for the SBW Award
Here are the nominations for the SBW (Sit Back & Watch) Awards:
1st choice (46 replies)
MAS - 27
President Nathan - 5
CASE - 5
PM Lee - 2
1 vote received for Public Transport Council, Goh Chok Tong, Law Society, M of Education, Investors, MD of MAS
2nd choice (26 replies)
PM Lee - 4
MAS - 4
Member of Parliament - 3
Lim Hng Kiang - 3
M of Finance - 2
Goh Chok Tong - 2
1 vote received for NTUC, M of Manpower, Singapore public, Prime Minster Office, CASE, Home Team, Land Transport Authority, People's Action Party
1st choice (46 replies)
MAS - 27
President Nathan - 5
CASE - 5
PM Lee - 2
1 vote received for Public Transport Council, Goh Chok Tong, Law Society, M of Education, Investors, MD of MAS
2nd choice (26 replies)
PM Lee - 4
MAS - 4
Member of Parliament - 3
Lim Hng Kiang - 3
M of Finance - 2
Goh Chok Tong - 2
1 vote received for NTUC, M of Manpower, Singapore public, Prime Minster Office, CASE, Home Team, Land Transport Authority, People's Action Party
DBS Bank: 'definitely' no note buyback
By George Ng (HK Edition)
HONG KONG: DBS Bank (Hong Kong) Ltd will "definitely" not buy back the Constellation Notes from its clients despite the fact that other banks have agreed to buy back another structured product they sold to investors, the bank's top executive said Friday.
"We have explained very clearly the risks involved when we sold the product to investors ... we have reviewed all complaints (regarding the sales of the product) and have made proper compensation in cases that involved mis-selling," said Chief Executive Officer Amy Yip, fielding media questions at a press briefing for the group's quarterly results.
"There will be no further settlement," she said. "We definitely won't buy back the notes." Yip emphasized that the structure of the Constellation notes is very different from the so-called Lehman Brothers minibonds.
Last month, 16 banks offered to pay at least 60 cents on the dollar to investors for the minibonds guaranteed by Lehman Brothers that lost their value after the US investment bank collapsed.
Linked to the credit of a basket of companies including Lehman, the value of the Constellation notes will be reduced whenever any of the reference institutions suffers from credit events such as bankruptcy or default.
DBS said in a statement in October last year that the possibility of the 4,700 investors losing their entire investment of $241-million in the Constellation notes "is likely to materialize".
Meanwhile, Koh Boon Hui, chairman of DBS Group Holdings Ltd, parent of DBS Bank (Hong Kong) Ltd, told the same press briefing that the group will "definitely" not reduce its headcounts further.
Rather, the bank will do "necessary" recruiting in Hong Kong as business improves with the economy, Yip added.
DBS, Singapore's largest bank and one of Southeast Asia's largest banks, cut 900 jobs late last year after the global financial crisis hit the world, with half of the headcount reductions coming from its Hong Kong unit.
The DBS group yesterday reported a net profit of 552 million Singapore dollars (S$) in the second quarter, up 21 percent from the first quarter as revenue growth boosted earnings before bad-debt allowances to a record S$1.6 billion.
On a year-on-year basis, net profit fell 17 percent from S$668 million as improved operating performance was offset by higher bad-debt allowances, the group said.
DBS set aside S$466 million for bad debts, almost eight times more than a year earlier, with non-performing loan ratio rising to 2.8 percent from 1.4 percent a year ago.
Meanwhile, the bank's Hong Kong unit, DBS Bank (Hong Kong) Ltd, reported a net profit of HK$532 million for the second quarter, down 21 percent from a year ago as non-interest income dropped 20 percent to S$632 million while bad-debt provisions surged 61 percent to S$373 million.
Compared with the first quarter, net profit was up 12 percent as net interest income improved by 5 percent to $1.19 billion while bad-debt provisions declined by 17 percent.
The non-performing loan ratio of the Hong Kong unit rose sharply from 1.7 percent in December to 2.6 percent in March and then retreated to 2.4 percent in June.
http://www.chinadaily.com.cn/hkedition/2009-08/08/content_8544177.htm
HONG KONG: DBS Bank (Hong Kong) Ltd will "definitely" not buy back the Constellation Notes from its clients despite the fact that other banks have agreed to buy back another structured product they sold to investors, the bank's top executive said Friday.
"We have explained very clearly the risks involved when we sold the product to investors ... we have reviewed all complaints (regarding the sales of the product) and have made proper compensation in cases that involved mis-selling," said Chief Executive Officer Amy Yip, fielding media questions at a press briefing for the group's quarterly results.
"There will be no further settlement," she said. "We definitely won't buy back the notes." Yip emphasized that the structure of the Constellation notes is very different from the so-called Lehman Brothers minibonds.
Last month, 16 banks offered to pay at least 60 cents on the dollar to investors for the minibonds guaranteed by Lehman Brothers that lost their value after the US investment bank collapsed.
Linked to the credit of a basket of companies including Lehman, the value of the Constellation notes will be reduced whenever any of the reference institutions suffers from credit events such as bankruptcy or default.
DBS said in a statement in October last year that the possibility of the 4,700 investors losing their entire investment of $241-million in the Constellation notes "is likely to materialize".
Meanwhile, Koh Boon Hui, chairman of DBS Group Holdings Ltd, parent of DBS Bank (Hong Kong) Ltd, told the same press briefing that the group will "definitely" not reduce its headcounts further.
Rather, the bank will do "necessary" recruiting in Hong Kong as business improves with the economy, Yip added.
DBS, Singapore's largest bank and one of Southeast Asia's largest banks, cut 900 jobs late last year after the global financial crisis hit the world, with half of the headcount reductions coming from its Hong Kong unit.
The DBS group yesterday reported a net profit of 552 million Singapore dollars (S$) in the second quarter, up 21 percent from the first quarter as revenue growth boosted earnings before bad-debt allowances to a record S$1.6 billion.
On a year-on-year basis, net profit fell 17 percent from S$668 million as improved operating performance was offset by higher bad-debt allowances, the group said.
DBS set aside S$466 million for bad debts, almost eight times more than a year earlier, with non-performing loan ratio rising to 2.8 percent from 1.4 percent a year ago.
Meanwhile, the bank's Hong Kong unit, DBS Bank (Hong Kong) Ltd, reported a net profit of HK$532 million for the second quarter, down 21 percent from a year ago as non-interest income dropped 20 percent to S$632 million while bad-debt provisions surged 61 percent to S$373 million.
Compared with the first quarter, net profit was up 12 percent as net interest income improved by 5 percent to $1.19 billion while bad-debt provisions declined by 17 percent.
The non-performing loan ratio of the Hong Kong unit rose sharply from 1.7 percent in December to 2.6 percent in March and then retreated to 2.4 percent in June.
http://www.chinadaily.com.cn/hkedition/2009-08/08/content_8544177.htm
The embodiment of democracy in our National flag and its reality
Read this article in the Kent Ridge Common blog.
Happ 44th birthday, Singapore.
HK investors protest DBS
HONG KONG - ABOUT 100 Hong Kong investors burned by complex financial products linked to failed US investment bank Lehman Brothers protested on Sunday, demanding securities regulators help them negotiate a settlement.
Tens of thousands of retail investors in this Chinese-ruled financial hub were hit by Lehman's collapse in September.
Hong Kong securities regulators announced a settlement deal last month for one group of investors who purchased certain Lehman-linked products through local banks, but the agreement did not cover products sold by Singaporean bank DBS Group Holdings.
Sunday's protesters were demanding securities regulators step in to strike a deal for DBS clients. The demonstrators bought so-called 'Constellation' notes from DBS - financial products that are linked to the credit ratings of a group of financial institutions, including Lehman.
About 6,900 Hong Kongers bought HK$2.3 billion (S$427 million) worth of the failed investments, according to K.C. Lok, an organiser of the disgruntled investors.
'DBS lacks a conscience', 'DBS is a swindler', the protesters chanted at a park in Hong Kong's downtown Central financial district.
Lok, who bought just over HK$100,000 in the Constellation notes, accused DBS of misleading its customers into believing the financial products were conservative investments.
'Many of the investors shifted their money from timed deposits,' Mr Lok said.
DBS Hong Kong spokeswoman Glendy Chu said on Sunday that the bank had explained the risks of the products and offered compensation to investors in cases where there was evidence of questionable sales practices.
The deal announced last month would see 16 local banks returning 60 or 70 per cent of the principal to thousands of investors in a payout that amounts to HK$6.3 billion. -- AP
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_414677.html
Tens of thousands of retail investors in this Chinese-ruled financial hub were hit by Lehman's collapse in September.
Hong Kong securities regulators announced a settlement deal last month for one group of investors who purchased certain Lehman-linked products through local banks, but the agreement did not cover products sold by Singaporean bank DBS Group Holdings.
Sunday's protesters were demanding securities regulators step in to strike a deal for DBS clients. The demonstrators bought so-called 'Constellation' notes from DBS - financial products that are linked to the credit ratings of a group of financial institutions, including Lehman.
About 6,900 Hong Kongers bought HK$2.3 billion (S$427 million) worth of the failed investments, according to K.C. Lok, an organiser of the disgruntled investors.
'DBS lacks a conscience', 'DBS is a swindler', the protesters chanted at a park in Hong Kong's downtown Central financial district.
Lok, who bought just over HK$100,000 in the Constellation notes, accused DBS of misleading its customers into believing the financial products were conservative investments.
'Many of the investors shifted their money from timed deposits,' Mr Lok said.
DBS Hong Kong spokeswoman Glendy Chu said on Sunday that the bank had explained the risks of the products and offered compensation to investors in cases where there was evidence of questionable sales practices.
The deal announced last month would see 16 local banks returning 60 or 70 per cent of the principal to thousands of investors in a payout that amounts to HK$6.3 billion. -- AP
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_414677.html
Nongsa, Batam is now a safe place
I visited Nongsa, the most populated town of Batam, over the weekend. I was there more than 15 years ago. That time, I felt uneasy moving around the place.
I was surprised to find the town to be quite well developed now. I felt rather safe moving visiting various places in the town. There was no feeling that bad characters were hanging around.
I asked my guide, a Singaporean who visits his family in Batam every weekend, if Nongsa is now a safe place. He said that Nongsa is now safe, and the crime rate is now low. Pickpocketing is now rare. If any pickpocket is caught, the local people would punish the culprits as they gave a bad name to Batam and scare Singaporeans from visiting the island. The crime gangs has now move to Johore Bahru to operate there - which explains its current bad reputation.
It is enjoyable to visit Nongsa, Batam.
I was surprised to find the town to be quite well developed now. I felt rather safe moving visiting various places in the town. There was no feeling that bad characters were hanging around.
I asked my guide, a Singaporean who visits his family in Batam every weekend, if Nongsa is now a safe place. He said that Nongsa is now safe, and the crime rate is now low. Pickpocketing is now rare. If any pickpocket is caught, the local people would punish the culprits as they gave a bad name to Batam and scare Singaporeans from visiting the island. The crime gangs has now move to Johore Bahru to operate there - which explains its current bad reputation.
It is enjoyable to visit Nongsa, Batam.
Subscribe to:
Posts (Atom)