Monday, November 8, 2010
Interesting topics in SGEP
There are several interesting topics and letter posted in the Singapore General Election Portal by Gerald. You can choose those that interest you and read them. www.easyapps.sg/sgep/latest.aspx.
Quantitative Easing - impact on Singapore
Someone asked for my views about the impact of quantitative easing on the Singapore economy. I must confess that I am not an economic expert but I believe that most economists are also unsure about the likely impact of these measures.
My own views are pessimistic, as expressed in this article about the Global Economic Turmoil. The low interest rate, stimulus package and quantitative easing adopted in America is causing asset bubbles around the world. In the short term, stock markets and property prices have shot up, but these are likely to cause a lot of problems in the months ahead.
America hopes to create more jobs with these measures. They expect the jobs to be created with the recovery of economic growth. I expect that these measures will fail to create the jobs, due to globalization, wide disparity of income, uncertainty of the future and other factors. If America goes into a double dip recession, it will reduce demand for the rest of the world and cause problems in the emerging countries that depend on consumer demand in America. It does not make sense to ask give money to a debtor to spend.
The long term solution is an economic system that can provide jobs for everyone who is willing to work. This will not come with the current economic structure, which is based on competition. It requires a new approach to distributing the work opportunities in a fair and regulated market, which will continue to be a free market in giving choice to workers and employers. My ideas are contained in this article on Creating Employment.
In the short term, the asset markets are booming, due to cheap money. You can join the party for the fun. But, like all bubbles, the pain has to come afterwards.
Tan Kin Lian
My own views are pessimistic, as expressed in this article about the Global Economic Turmoil. The low interest rate, stimulus package and quantitative easing adopted in America is causing asset bubbles around the world. In the short term, stock markets and property prices have shot up, but these are likely to cause a lot of problems in the months ahead.
America hopes to create more jobs with these measures. They expect the jobs to be created with the recovery of economic growth. I expect that these measures will fail to create the jobs, due to globalization, wide disparity of income, uncertainty of the future and other factors. If America goes into a double dip recession, it will reduce demand for the rest of the world and cause problems in the emerging countries that depend on consumer demand in America. It does not make sense to ask give money to a debtor to spend.
The long term solution is an economic system that can provide jobs for everyone who is willing to work. This will not come with the current economic structure, which is based on competition. It requires a new approach to distributing the work opportunities in a fair and regulated market, which will continue to be a free market in giving choice to workers and employers. My ideas are contained in this article on Creating Employment.
In the short term, the asset markets are booming, due to cheap money. You can join the party for the fun. But, like all bubbles, the pain has to come afterwards.
Tan Kin Lian
Dubai - hassle free for travellers
Dubai is the only place that I had visited, which does not require the traveler to complete an immigration or custom form. This archaic practice, first started more than a century ago, continued is continued mindlessly by government officials in many countries. I am thankful that the European countries have at least simplified their entry forms.
Singapore can learn a lesson from Dubai and get rid of the immigration form that visitors are required to complete in entering Singapore. The main purpose of the form is for tracking of tourist statistics. Are the statistics so important to add to the hassle for visitors?
If we are interested to know their country of origin, look at their passport. There is already a lot of information that is captured on the magnetic strip of the passport. If we want to know how many tourist stay in our hotels, we can get the information from the occupancy rates.If we want to know how many people are on group tours, ask the travel agencies. If we want to know how many people are first time visitors to Singapore, we can match the passport numbers against our huge database. We need to check anyway for the terrorists that are not allowed to enter our country.
It is time for the Singapore immigration to get rid of the dubious entry form. And perhaps, they can encourage the Asean countries to do the same, so as to make it hassle free for people to travel around Asean and promote tourism.
Tan Kin Lian
Now in Dubai on a business trip
Singapore can learn a lesson from Dubai and get rid of the immigration form that visitors are required to complete in entering Singapore. The main purpose of the form is for tracking of tourist statistics. Are the statistics so important to add to the hassle for visitors?
If we are interested to know their country of origin, look at their passport. There is already a lot of information that is captured on the magnetic strip of the passport. If we want to know how many tourist stay in our hotels, we can get the information from the occupancy rates.If we want to know how many people are on group tours, ask the travel agencies. If we want to know how many people are first time visitors to Singapore, we can match the passport numbers against our huge database. We need to check anyway for the terrorists that are not allowed to enter our country.
It is time for the Singapore immigration to get rid of the dubious entry form. And perhaps, they can encourage the Asean countries to do the same, so as to make it hassle free for people to travel around Asean and promote tourism.
Tan Kin Lian
Now in Dubai on a business trip
Water, Water Everywhere
Singapore leads the world in developing water resources. However, it requires the use of energy, which is also costly. Read:
http://www.newscientist.com/projects/ibm/artwater2010
http://www.newscientist.com/projects/ibm/artwater2010
FISCA Talk - Consumer Guide to Insurance
I have received several requests from readers to conduct a talk on insurance. In response to this request, I have prepared the outline of the talk here. The fee for the talk will be $20 (for FISCA members) and $30 (for public).
I wish to carry out a survey to find out how many people are interested in this talk. Please reply to this survey. If there is sufficient interest, I will ask FISCA to organise this talk.
I wish to carry out a survey to find out how many people are interested in this talk. Please reply to this survey. If there is sufficient interest, I will ask FISCA to organise this talk.
Different Types of ETFs
ETFs have evolved over the years, becoming more complex. Investors considering ETFs should evaluate each investment closely and not assume all ETFs are alike. In the last few years, a number of leveraged and inverse ETFs have been introduced to the market that are very different from the traditional variety of ETFs.
www.tankinlian.com/ask.aspx
www.tankinlian.com/ask.aspx
Is life insurance good or bad?
Life insurance can be good and can be bad. It is good if it is priced fairly and the consumer pays a premium rate that reflects the risk and a reasonable margin for the insurance company to pay its expenses and make a fair profit. It provides a mechanism to pool the risk and pay a compensation to those who suffer the insured event.
It is bad if the insurance is priced in a predatory manner, over-charges the consumer and is sold with inaccurate and misleading statements - so as to allow the insurance agent to earn a fat commission and the insurance company to make a fat profit.
Read this article.
It is bad if the insurance is priced in a predatory manner, over-charges the consumer and is sold with inaccurate and misleading statements - so as to allow the insurance agent to earn a fat commission and the insurance company to make a fat profit.
Read this article.
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