Wednesday, August 26, 2009

Travel to Jeddah, Saudi Arabia

I will be in Jeddah in Saudi Arabia over the next four days. Jeddah is a city quite close to Mecca, where millions of Muslims visit each year on the pilgrimage.

On the banks of the Red Sea, Jeddah is a key port in Saudi Arabia and the world’s largest open-air art gallery. Landscaped with natural art depicting Arabic culture, the city is decorated with sculpture throughout the city.

Although I will be away for the next few days, I have created several postings which will appear in my blog on the days that I am away. I shall also log in at convenient times to moderate the comments in my blog.

Join FISCA

I like to ask all visitors to my blog to join FISCA. Please give your support to this new association.

FISCA website
FISCA application

Low wages and purchasing power in Singapore

Read this article.

Conclusion
The high cost of living coupled with low wages and domestic purchasing power condemns the average Singapore worker to an ignonimous, monotonus and stressful working life. Singapore workers have to work harder to earn the same amount of money and save for a longer period to purchase the same product.

In 1991, then Prime Minister Goh Chok Tong promised Singaporeans that we will be able to achieve the “Swiss standard of living” within a decade. Ten years later, we have a living standard which is closer to Russia than Switzerland.

Like Singapore, the Russians has a low wage and domestic purchasing power and Russia, especially the city of Moscow, has one of the highest cost of living in the world.

Petition to the Prime Minister (2)

Some people were disappointed that the hard work in organising the Petition had been wasted, if the Prime Minister does not care and just passes the Petition to the Monetary Authority of Singapore.

We should look at this matter from a different angle. 777 people have studied the issue and signed the Petition. These people now know the issue more clearly. Other people who did not sign the Petiton (because they were not directly involved) also understand the issue better.

We should be patient and continue to find ways to put our views across. We should not expect miracle results. The bigger goal should be to change how things are run in Singapore. Every situation, such as this, add to the process of change.

Tan Kin Lian

Petition.

Review of National Service

This letter was sent to the Straits Times Forum on 11 August, and placed under consideration for over 2 weeks (pehaps waiting for clearance from somewhere up there). I assume that it has been rejected, although there was no formal reply.

Editor
Straits Times

I refer to the letter by Xiao Fuchen entitled “NS for adult new citizens not practical” (ST 11 Aug).

I agree with Xiao Fuchen from another angle. If this is made mandatory, very few foreigners will want to take up citizenship, precisely for the reason that it will disrupt their careers and earning power. This is a burden that is now being shouldered by male Singaporeans, who are not given any choice on this matter.

After 44 years of independence and prosperity, I hope that it is time to review the role of national service. Perhaps we should now have a professional army to defend our nation. Already, we are spending a large budget on the purchase of military hardware. The current budget could be re-allocated to allow payment of competitive salaries to career soldiers. Modern defence does not require a large number of infantry soldiers anyway.

If there is still the need to continue with a citizen army, I argue that the citizens serving full time National Service should be paid an adequate allowance, similar to what they would earn in the private sector. They should not be required to shoulder an unfair burden to defend the nation, when citizenships are offered to foreigners without a similar responsibility.

If this increases the defence budget, I suggest that the Government considers adopting the Swiss model which requires residents exempt from the compulsory military service to pay a 3% additional annual income tax, popularly known as the “defence tax”, until the age of 30.

Tan Kin Lian

Challenges for the Free Market

The English Premium League (EPL) likes the telcos to compete for the rights to their shows, as the competition will increase the fees payable to them. SingTel and Starhub had been competing against each other for the rights, leading to higher charges payable by the viewing public.

There is some suggest that SingTel and Starhub will work together to submit a joint bid. EPL will object and may reject it. More importantly, is this a monopoly in reverse, where the combined buying power will bring down the price?

A similar situation has happened in the pricing of iron ore and other mineral products. China is a big buyer of these products. Two companies in Australia are big producers. There has been some dispute on the pricing of these products.

These are examples of the failure of the free market to determine the correct prices. When certain producers or buyers have a dominant share of the market, they can exercise pricing power to the detriment of the other party.

It is quite dangerous to rely on the free market for pricing, when it can be subject to many practical challenges. There must be some other ways to ensure a fair price, rather than depending on the free market blindly. The new approach requires the people in charge to exercise their judgement, using a more transparent process where all the affected parties are able to present their views.

There are many aspects of life in Singapore, where the reliance on the free market to determine prices has not worked well. They are in the public transport, power, water, health care and financial services. I hope that a new approach can be taken on these matters.

Tan Kin Lian

End of life issues need to be addressed

What is the difference between:
a) suicide
b) euthanasia
c) prolong life
d) prolong death?

Read this article.

How insurers do or don't compete

Read this article.

Petition to the Prime Minister

I have sent the Petition to the Prime Minister. It is dated 26 August and contained 777 signatures. The Prime Minister's Office has acknowledged the letter and sent it to the Monetary Authority of Singapore. I hope that they will pay attention to the Prime Minister's request.

Petition.