The Minister for National Development said that HDB flats can be sold at a lower, more affordable price if the buyer accept that they have to be sold back to the Government at cost. He asked if Singaporeans would prefer to have this system.
I suggest the following approach:
a) Offer both choices to the citizens. Some prefer to pay more and have market values for their HDB flats. Others prefer to pay less and forego the capital gain. It depends on the personal circumstances. The PM once said that we cannot have "one size fits all".
b) The resale price to the HDB should be adjusted for inflation and for the shorter lease.
c) There should be a sufficient margin (say 30% to 40%) between the sale price of the "affordable" flat and the "marketable" flat.
We should also consider the Swiss system, where most people rent their flats. They can invest in property REITS, but they do not need to own their property. The properties can be owned by the REIT. This will give them the flexibilty to move closer to their place of work, following a change of job. They are not tied to their own purchased property.
Tan Kin Lian
Tuesday, December 29, 2009
Over production
The world is producing more goods than is really needed. The over production has lead to the wasteful use of energy and resources and damage to the environment. Through competition, more people are working harder to produce goods that are not really needed. We have too much clothes, electronic equipments and gadgets and too little time (due to long working hours) to enjoy them.
We work longer hours to keep our job, but in the process cause other people to lose their jobs, because they work in "less efficient" businesses or countries.
Is this called "prosperity and affluence" ?
Tan Kin Lian
We work longer hours to keep our job, but in the process cause other people to lose their jobs, because they work in "less efficient" businesses or countries.
Is this called "prosperity and affluence" ?
Tan Kin Lian
Expressing my views
I write in this blog to give my views and observations. Readers are free to give their views, which may differ from my views. In doing so, there is no need for them to criticize or attack my views, especially if they are doing so anonymously or under a fake name. I recognize one troublesome person, by his style of writing, who has a habit of being cynical and negative. I hope that he can create his own blog to write his views, rather than be a nuisance in my blog.
Loan shark menace
A reader wrote to the Straits Times that there is a need to find a solution for people in need of cash, so that they do not have to rely on loan sharks. For these people, the loan sharks are the only source of cash, even though the interest rates are exorbitant, and the loan sharks have to resort to criminal activities to enforce the repayments.
Some people resort to loan sharks due to gambling debts (which can be avoided). Others are forced to borrow money due to unemployment or big medical bills.
I encourage people to have personal savings, so that they have money to draw down during these emergencies. There is a case for the community to provide funds for people who are in need of temporary cash due to factors beyond their control. They are required to pay back the borrowings, but the rate of interest should be kept modest.
Many developed countries have unemployment benefits, which are given to people who lose their jobs. The benefit is paid for a certain period, such as 12 months. Beyond that, they can receive a lower amount of welfare benefits to survive.
My proposal for a community-based borrowing is less generous that the safety net available in the advanced countries. But, it is better than a "loan shark" scheme that is practiced here.
Tan Kin Lian
Some people resort to loan sharks due to gambling debts (which can be avoided). Others are forced to borrow money due to unemployment or big medical bills.
I encourage people to have personal savings, so that they have money to draw down during these emergencies. There is a case for the community to provide funds for people who are in need of temporary cash due to factors beyond their control. They are required to pay back the borrowings, but the rate of interest should be kept modest.
Many developed countries have unemployment benefits, which are given to people who lose their jobs. The benefit is paid for a certain period, such as 12 months. Beyond that, they can receive a lower amount of welfare benefits to survive.
My proposal for a community-based borrowing is less generous that the safety net available in the advanced countries. But, it is better than a "loan shark" scheme that is practiced here.
Tan Kin Lian
Need for a minimum wage
Here is a case to illustrate the need for a minimum wage to offset the harmful effects of free market competition.
Bus operators in Malaysia compete fiercely for business. They have to offer lower fares. To survive, they pay low wages to their bus drivers, who have to work long hours to make up for the inadequate pay. Due to insufficient sleep and rest, they are more prone to accidents, which is risky to the passengers.
There is a need for regulation on the minimum wage and maximum hours of work for bus drivers to ensure safety to the public. This principle can be extended to construction and production work. We should have a minimum wage and maximum working hours in most occupations.
Tan Kin Lian
Bus operators in Malaysia compete fiercely for business. They have to offer lower fares. To survive, they pay low wages to their bus drivers, who have to work long hours to make up for the inadequate pay. Due to insufficient sleep and rest, they are more prone to accidents, which is risky to the passengers.
There is a need for regulation on the minimum wage and maximum hours of work for bus drivers to ensure safety to the public. This principle can be extended to construction and production work. We should have a minimum wage and maximum working hours in most occupations.
Tan Kin Lian
Hassle given to travellers
When I visit another country, I am usually asked to complete three detailed forms for immigration, custom and health. They ask a lot of detailed questions. It is quite troublesome to complete these forms.
I suspect that the authorities do not use the information in the forms, but they still ask the visitors to complete them anyway. It cost them nothing. They do not care about the hassle given to the visitor.
The immigration form was necessary in the days before computerisation. It was the only way for them to record who has visited their country. But, after computerisation was introduced, the information of the visitor was already automatically recorded into the computer. But the immigration authority continued to ask the visitor to fill up the form.
Have you wondered why they ask you to enter information on where you are staying? The only purpose is to contact you in an emergency. If this was the purpose, it would be easier to ask the visitor to give the mobile phone number. Anyway, the forms were introduced in the days before mobile phone was available, and has not been changed.
I wonder why all the governments around the world, including Singapore, employ highly paid civil servants, but they do not think, or do not care.
My Indonesian friend passed this remark. A civil servant had said that it is their job to make life more difficult (and not simpler) for the other people.
I suspect that the authorities do not use the information in the forms, but they still ask the visitors to complete them anyway. It cost them nothing. They do not care about the hassle given to the visitor.
The immigration form was necessary in the days before computerisation. It was the only way for them to record who has visited their country. But, after computerisation was introduced, the information of the visitor was already automatically recorded into the computer. But the immigration authority continued to ask the visitor to fill up the form.
Have you wondered why they ask you to enter information on where you are staying? The only purpose is to contact you in an emergency. If this was the purpose, it would be easier to ask the visitor to give the mobile phone number. Anyway, the forms were introduced in the days before mobile phone was available, and has not been changed.
I wonder why all the governments around the world, including Singapore, employ highly paid civil servants, but they do not think, or do not care.
My Indonesian friend passed this remark. A civil servant had said that it is their job to make life more difficult (and not simpler) for the other people.
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