Thursday, February 11, 2010

Logic9 (pocket sudoku) $4

Logic9 (pocket sudoku) vol 3 and 4 is now available at Internet shop. Each volume contains 128 puzzles at 4 levels (32 puzzles for each level). It can be kept in a pocket and can be used on the train, bus or plane. This is available at a discount of 15% during February (net price $3.40). Order here.

The Future That I Like To See

A reader asked me to summarize my views on social, economic and political topics, which have been expressed in various postings in this blog. I have made my first attempt here.

Government regulation

Some people expressed surprise that I advocate more regulation. They point to examples of oppressive and bad regulations.

Society need to be regulated. The poor and the weak have to be protected against abuse and exploitation. This has to be achieved through law and regulation. Regulation should not and need not be intrusive. They do not need to impinge on personal freedom. So, there has to be a proper balance.

In a democratic and free society, the citizens will help to determine where the line should be drawn between regulation and freedom. So, we need a democratic and accountable authority. I am giving some brief thoughts here, and will develop this idea more more in subsequent postings.

Tan Kin Lian

Risky new financial product

A new financial product has been created that could cause systemic risk. Read about it here.

America addresses its shortcomings

The American system has its strength - openness, accountability and freedom. However, it has its weaknesses - a political system in gridlock. It is difficult for American to take the actions that are needed to address its shortcomings, due to the obstruction caused by some legislators.

The shortcomings have been acknowledged and some people, including President Obama, are stepping forward to deal with these issues, to find a way to get the country to act and solve its long term problems. The willingness to recognize its problems, to discuss them openly, and to act on them, may well be the strengths of the American system. I hope that they will succeed in this challenge.

I hope that Singapore can adopt some of this new approach, and find new ways to solve problems that have not been solved for several decades, such as the high cost of living, long working hours, poor quality of life and the low birth rate.

Tan Kin LianPublish Post

Government regulations

Many people dislike government regulation and prefer to leave matters to be sorted out by the free market. This is the approach that has led to asset bubbles and the collapse of the global financial system. It is the government stimulus and financial support that have led to the restoration of confidence in the market. However, this government actions are only temporary props to the system. The underlying root of the problem has not been solved.

Some people like the free market as it provides opportunities for innovation and initiative. But it also provides opportunity for cheating and exploitation, which are the fastest and easiest ways to accumulate wealth (especially in an environment where enforcement of business ethics is lax).

To have a more fair and stable market, we need regulations. The regulations have to be of the right type and not the wrong type. The regulations should not be rigid and cannot solve all the problems, but they should be able to solve more problems than create them. Leaving the free market to solve the problem will not work, as the profit motive and vested interest will find ways to take advantage of the situation.

There is a need for the state to provide more of the social services required by the people, such as education, health care, security, infrastructure, transport, housing and old age pension. The state does not need to employ people to run these services, but they can be outsourced to the private sector - but the fees, charges and standard of service should be regulated.

The state needs to provide up to a basic standard and leave the space for the higher income to buy additional services from the private market.  But the state benefits should form the benchmark to compare the services provided in the private market.

This is the approach adopted by many social democracies, such as those in Europe. They are able to provide a better quality of life for their people.

Tan Kin Lian

Low takeup rate of training places

According to the Straits Times, there is a low take up rate of training places. Small businesses are not sending their workers for training and skill upgrading.

The government leaders and planners should not continue to live in their own world.  Their policies and strategies for the past decades have not worked. To get better results, they have to understand the real issues facing the small businesses and the workers.

Business conditions are difficult. Small businesses are not able to get a decent margin, due to excessive competition and wasteful activities. The cost of running a business is high, compounded by unnecessary activities  such as compliance with GST and other requirements.

The workers have to work long hours and do not have the time, energy or attention to be upgraded.

Tan Kin Lian

Financial Literacy for Secondary Students

Someone asked for my views about the content of a financial literacy talk for secondary students. After some discussion, we agreed on the following:

* to set aside savings, from parent's allowance or part time work, in a bank account
* to distinguish between necessary and avoidable expenditures
* to calculate the interest charges on installment payments for computer, mobile phones and other items
* to avoid investing in products that are inflexible and have high charges, e.g. life insurance policies
* to have flexible savings that may be needed to pay for education and other necessary expenses
* financial burden to parents on sending children for education in overseas universities

These points are covered in my book, Practical Guide on Financial Planning which is available here.

Please share your views on other points that should be included.

Tan Kin Lian

Financial Literacy for Primary Students

Someone asked for my views on the content of a financial literacy talk to primary students. After discussion, we agreed to cover the following:

* to spend what is needed from the parent's allowance, and set aside savings
* to put the savings in a bank to earn interest
* to pay for what they like from their savings, rather than depend on their parents
* to learn about what the parent has to do, to earn the money to support the family

My friend told me this story. His elder son, who is five years old, wanted to buy an expensive toy. He said, "Patrick, daddy can buy you this toy, but he has to stay back at the office until late at night to earn the money to pay for this toy. Do you wish daddy to come home earlier, or stay back at the office until late at night?" Patrick decided that he did not want the toy.

What are your views on the financial literacy matters that should be taught to primary students?

Tan Kin Lian

TKL Intelligence Quiz Vol 3

BOOK ADDED TODAY - INTERNET SHOP.

TKL Intelligence Quiz Vol 3 is now available for sale through Internet Shop. The usual price is $7.90 and the promotion discount of 15% is available for the month of February (Promotion code - BLOG).

Vol 1 and 2 of this quiz book were sold out. So, I decided to publish volume 3. This quiz contains 72 puzzles (at 3 levels of difficulty - 24 puzzles at each level) based on the popular puzzle that was purported to have been created by Albert Einstein, the scientist. The puzzles were published weekly in The New Paper for several months, but has stopped now. There are many people who are addicted to this puzzle. It is fun and is like a Word Sudoku.

Order here. You can also order the other books and item and enjoy the 15% discount, only for February.

Year of the Tiger

Best wishes for a Happy Lunar New Year. Wish you good health and happiness.

Tan Kin Lian