Printed in Straits Times Online Forum on 22 September 2009
I congratulate the Ministry of Health for their success in getting 84 percent of the population covered under Medishield. Getting the remaining 16 percent to be covered will be a challenge, especially if some of the uninsured find it difficult to meet the underwriting requirements or are rejected due to pre-existing conditions.
Medishield is a national scheme. It should operate on different principles from commercial insurance, where the insurers cherry pick to select the healthy lives. It should be made available to all, preferably without underwriting.
In my earlier letter, I suggested that a window period be given to all existing uninsured to join Medishield without underwriting. Those who join during this window period will have their existing illnesses excluded or partially covered for a period of two years and fully covered afterwards.
I did not suggest that this they be allowed to join the scheme at any future date on these special terms. I agree with the Ministry that people should join when they are young and healthy, and not wait for a serious illness to develop before they join the scheme. The proposed window period will make it attractive for the uninsured to join Medishield now and not wait longer.
I hope to clarify my suggestion and that the Ministry will consider it.
Tan Kin Lian
Wednesday, September 23, 2009
RED Portal (12) - Concourse Skyline
I wanted to see the Concourse Skyline in Beach Road. I was told that it has an excellent view of the sea.
I went to the RED website and search for this project. I viewed the recent transactions, including the latest in June. They were useful in giving me a good picture of the current transacted prices for various floors and the trend during the past months. I was plesantly surprised that the price psf is quite reasonable, compared to similar projects.
This will help me to negotiate a good price with the developer or the marketing agent. At least, it gives me an independent source of information, to make sure that the marketing agent is telling me the truth.
www.easysearch.sg (Real Estate Data)
I went to the RED website and search for this project. I viewed the recent transactions, including the latest in June. They were useful in giving me a good picture of the current transacted prices for various floors and the trend during the past months. I was plesantly surprised that the price psf is quite reasonable, compared to similar projects.
This will help me to negotiate a good price with the developer or the marketing agent. At least, it gives me an independent source of information, to make sure that the marketing agent is telling me the truth.
www.easysearch.sg (Real Estate Data)
Free market (2) - a regulated market
Some people think that a free market should be unregulated and that deregulation will lead to innovation.
This is partly true but largely false. An unregulated market can lead to exploitation and cheating. The people with the information and financial resources can take advantage of the consumers and make excessive profit.
A good example of a regulated, free market is the stock exchange. The regulator knows that it is easy for the retail investors to be taken exploited by by people who can manipulate the stock prices. The regulator writes and enforces regulations to ensure that the market is fair, and that information is readily available to all participants. Insider trading, manipulation of prices, release of false information and other unfair practices are disallowed. Those guilty can even go to jail.
Medical services used to be self-regulated. The medical profession sets guidelines on the prices to be charged for various common procedures and services. They are published and made know to consumers. They set the benchmark for fair prices and protect the consumer. When the guidelines were abolished by the Competition Commission, it was actually a step backward. Instead of helping consumers, this change actually caused more problems for consumers.
The regulator allows taxi companies to set their fares, calling charges, peak hour surcharge and other charges. This is supposed to allow free competition, but it is confusing to the public. The commuter does not know what is the fare, as it depends on the taxi company. If the commuter is at a taxi stand and an expensive taxi comes along, it is difficult for the commuter to reject that taxi, without causing unpleasantness.
A better approach is for the regulator to set the standard rates for the basic taxi service (which applies to taxis picking commuters along the road or at taxi stands. Premium services can be made available to commuters who call a taxi on their special hotline, as the commuter know and accept the charges for that premium service.
We need a regulated market to be fair to all parties and to improve efficiency. We can promote competition by giving choice to consumers (e.g. to choose the doctor) and for service providers to decide if they wish to provide the service at the regulated rates. In the stock exchange, an investor has the choice of buying or selling a specific stock. This is how competition can work in a free market to give better outcome and fair prices.
Tan Kin Lian
This is partly true but largely false. An unregulated market can lead to exploitation and cheating. The people with the information and financial resources can take advantage of the consumers and make excessive profit.
A good example of a regulated, free market is the stock exchange. The regulator knows that it is easy for the retail investors to be taken exploited by by people who can manipulate the stock prices. The regulator writes and enforces regulations to ensure that the market is fair, and that information is readily available to all participants. Insider trading, manipulation of prices, release of false information and other unfair practices are disallowed. Those guilty can even go to jail.
Medical services used to be self-regulated. The medical profession sets guidelines on the prices to be charged for various common procedures and services. They are published and made know to consumers. They set the benchmark for fair prices and protect the consumer. When the guidelines were abolished by the Competition Commission, it was actually a step backward. Instead of helping consumers, this change actually caused more problems for consumers.
The regulator allows taxi companies to set their fares, calling charges, peak hour surcharge and other charges. This is supposed to allow free competition, but it is confusing to the public. The commuter does not know what is the fare, as it depends on the taxi company. If the commuter is at a taxi stand and an expensive taxi comes along, it is difficult for the commuter to reject that taxi, without causing unpleasantness.
A better approach is for the regulator to set the standard rates for the basic taxi service (which applies to taxis picking commuters along the road or at taxi stands. Premium services can be made available to commuters who call a taxi on their special hotline, as the commuter know and accept the charges for that premium service.
We need a regulated market to be fair to all parties and to improve efficiency. We can promote competition by giving choice to consumers (e.g. to choose the doctor) and for service providers to decide if they wish to provide the service at the regulated rates. In the stock exchange, an investor has the choice of buying or selling a specific stock. This is how competition can work in a free market to give better outcome and fair prices.
Tan Kin Lian
Free Market (1)
I will be writing a few articles about the free market.
Some of the topics are:
- regulated or unregulated
- fair pricing
- access to information
- cooperation, not competition
- opportunity to work
- reduced fixed cost
- access to credit
- corporate social responsibility
- consumer protection
- customer satisfaction
Please suggest other topics and views.
Some of the topics are:
- regulated or unregulated
- fair pricing
- access to information
- cooperation, not competition
- opportunity to work
- reduced fixed cost
- access to credit
- corporate social responsibility
- consumer protection
- customer satisfaction
Please suggest other topics and views.
A bad culture in Singapore
This letter printed in the Straits Times showed that the investment seminar was well attended and that food was amply provided before the start of the seminar and during lunch. I wonder if the participants had to pay for the seminar. I checked the SIAS website and found that it was offered free.
I am saddened that Singapore has now developed into a society where people have to be enticed to attend functions by offering free meals and goodie bags. This approach is adopted for a few decades in community events. It develops a bad culture among our people - to expect things for free, and to pay for them indirectly by "being cheated".
I am saddened that Singapore has now developed into a society where people have to be enticed to attend functions by offering free meals and goodie bags. This approach is adopted for a few decades in community events. It develops a bad culture among our people - to expect things for free, and to pay for them indirectly by "being cheated".
Worrying lesson from Japan
The headlines of a news report said, "GDP up, exports up" but the sub-headline says "Jobless increases, wages depressed".
I am afraid that this will be the situation in many countries around the world, including America and Singapore. It is the consequence of the "globalisation" model, weak protection of workers and consumers, and the wide disparity of income. This is why Singapore, Hong Kong and America have the largest ratio of billionaires to population.
Even Japan, which is more socialist in its governance, is suffering indirectly from globalisation. This is why wages continues to fall, and many people continue to be unemployed.
How can the world be more prosperous, if wealth is not shared fairly and justly? How many people should go into poverty and debt, to create more billionaires for a few?
I am afraid that this will be the situation in many countries around the world, including America and Singapore. It is the consequence of the "globalisation" model, weak protection of workers and consumers, and the wide disparity of income. This is why Singapore, Hong Kong and America have the largest ratio of billionaires to population.
Even Japan, which is more socialist in its governance, is suffering indirectly from globalisation. This is why wages continues to fall, and many people continue to be unemployed.
How can the world be more prosperous, if wealth is not shared fairly and justly? How many people should go into poverty and debt, to create more billionaires for a few?
Slow recovery of global economy
Many analysts have commented that the global economy is still not "out of the woods". Unemployment continues to be high. The current euphoria in the stock market is due to the injection of government funds to prop up the economy.
America faces this situation now. I think that our government leaders are also hinting that Singapore faces a similar situation.
America faces this situation now. I think that our government leaders are also hinting that Singapore faces a similar situation.
Express bus in Singapore
Read my views about operating express buses to connect the different towns in Singapore and offer effective competition to the MRT.
Use "funny language" to confuse the policyholder
In April, a policyholder was advised by the agent to "lock in" his investment linked policy and wait for a higher price to "lock out" his policy. He was assured that he would not be adversely affected by this transaction. He trusted the agent and took the advice to "lock in" his policy, although he was not clear about this concept.
Later, he discovered that "lock in" meant that he sold his investments to prevent further loss, if the market falls further. Instead of protecting against further losses, he missed the rally in the market and lost a lot of money due to this bad advice.
Why did the agent use "funny language" to confuse the policyholder? Why not advise the policyholder in direct language, i.e. sell the investments to avoid further losses from a falling market?
If the policyholder sells the investments and buy them back later, will the agent earn commission on the new purchase? I do not know the practice of this company and the terms on which the units are sold and bought back. Is this another form of twisting?
I wonder if the agent was giving bad advice, or have an ulterior motive in getting the client to churn the investment? I am very sad that some agents take advantage of policyholders to earn more commission.
Later, he discovered that "lock in" meant that he sold his investments to prevent further loss, if the market falls further. Instead of protecting against further losses, he missed the rally in the market and lost a lot of money due to this bad advice.
Why did the agent use "funny language" to confuse the policyholder? Why not advise the policyholder in direct language, i.e. sell the investments to avoid further losses from a falling market?
If the policyholder sells the investments and buy them back later, will the agent earn commission on the new purchase? I do not know the practice of this company and the terms on which the units are sold and bought back. Is this another form of twisting?
I wonder if the agent was giving bad advice, or have an ulterior motive in getting the client to churn the investment? I am very sad that some agents take advantage of policyholders to earn more commission.
Billionaires
The following table shows the ratio of billionaires to population. HK has the highest ratio followed by USA. They tend to reflect nations with the widest disparity of income. I wonder where Singapore stands?
Country Billionaires Population Ratio
USA 269 303 m 0.88
Japan 29 127 m 0.23
Germany 28 82 m 0.34
Hong Kong 14 10 m 1.40
UK 12 60 m 0.20
Singapore ? 5 m ?
President Obama's speech to the United Nations
As I hear President Obama speak to the United Nations, I wonder - how much is he referring to Singapore? We will know, when he comes to Singapore in November for the APEC meeting.
Whistle blower of a rating agency
Here is an ex-employee who blew the whistle on a rating agency. Read this story.
Emphasis on Growth is misguided
It is important to have some other measures on the quality of life. Read this report.
Long wait for a bus
It took me 1 hour to reach home from my office, although the distance is only 2 km. This is Singapore. Sigh!
RED Portal (11) - Compass Height
Compass Height in Sengkang has a high amenity index of 85. Here are the amenities within 1 km of this condo. Wow, they got nearly everything!
www.easysearch.sg (Real Estate Data)
www.easysearch.sg (Real Estate Data)
Type Name km
MRT Sengkang (ne16) 0.07
Bus Interchange Sengkang Bus Interchange 0.07
Shopping Compass Point 0.13
Library Sengkang Community Library 0.13
Comm Centre Sengkang Community Club (cc) 0.26
Comm Centre Anchorvale Community Centre (cc) 0.37
School (P) Compassvale Primary School 0.45
School (P) Seng Kang Primary School 0.47
School (P) Nan Chiau Primary School 0.58
School (S) Nan Chiau High School 0.59
School (S) Seng Kang Secondary School 0.69
Comm Centre Rivervale Community Centre (cc) 0.69
School (S) Compassvale Secondary School 0.70
School (S) Chij St. Joseph's Convent 0.72
Library Punggol East Comm Children's Library 0.82
Shopping Rivervale Mall 0.90
School (P) North Spring Primary School 0.91
School (P) Rivervale Primary School 0.93
Self insurance for health
Here is a story of a knowledgeable person who choose to self-insure the cost of medical treatments. By paying himself, he learns how to find out about the right price for medical treatment and where to get the treatment.
RED Portal (10) - Top BMP, AMX, Popular Places
The RED Portal now has the following Search options:
Top BMP - display the highest 20 benchmark prices, showing the most expensive projects in Singapore
Top AMX - display the top 20 amenity index, showing the projects with the best nearby amenities (i.e. MRT, shopping, schools)
Popular places - shows all projects within 1 km of a selected place, e.g. school or shopping mall
The top BMP and AMX will be changed later to show 100 projects.
www.easysearch.sg (Real Estate Data)
Top BMP - display the highest 20 benchmark prices, showing the most expensive projects in Singapore
Top AMX - display the top 20 amenity index, showing the projects with the best nearby amenities (i.e. MRT, shopping, schools)
Popular places - shows all projects within 1 km of a selected place, e.g. school or shopping mall
The top BMP and AMX will be changed later to show 100 projects.
www.easysearch.sg (Real Estate Data)
Unfair reduction in bonus
A policyholder found that the bonus on his maturing policy had been cut by 40% compared to the original projection issued on the point of sale. The reason given by the insurance company was that the bonus was cut due to several economic crisis during the past years. The policyholder argued that one company - who had gone through the same crises- did not cut the bonus, but his the insurer rejected his argument.
The policyholder asked my views on the fairness of the bonus cut and if there is any point in lodging a complaint with FIDREC.
I encourage him to lodge this complaint with FIDREC. A large part of the bonus cut is probably due to the cut in terminal bonus. This cut might have been necessary earlier during this year, when the stock market dropped sharply. However, the stock market had recovered by 60% (from its lowest point) during the past six months. It is only fair that the cut should be partially restored. I hope that FIDREC will consider this point in its adjudication.
Tan Kin Lian
The policyholder asked my views on the fairness of the bonus cut and if there is any point in lodging a complaint with FIDREC.
I encourage him to lodge this complaint with FIDREC. A large part of the bonus cut is probably due to the cut in terminal bonus. This cut might have been necessary earlier during this year, when the stock market dropped sharply. However, the stock market had recovered by 60% (from its lowest point) during the past six months. It is only fair that the cut should be partially restored. I hope that FIDREC will consider this point in its adjudication.
Tan Kin Lian
Highest life expectancy
The top 10 countries with the highest life expectancy are:
Andorra 83.5
San Marino 8.16
Japan 81.2
Singapore 80.7
Australia, Switzerland, Sweden 80.4
Hong Kong 80.2
Canada, Iceland 80.1
Singapore ranked 4th in the world, just behind Japan.Andorra and San Marino are quite small countries.
This has implications on CPF Life. People are living longer. They need a life annuity to pay them an income for a lifetime.
Andorra 83.5
San Marino 8.16
Japan 81.2
Singapore 80.7
Australia, Switzerland, Sweden 80.4
Hong Kong 80.2
Canada, Iceland 80.1
Singapore ranked 4th in the world, just behind Japan.Andorra and San Marino are quite small countries.
This has implications on CPF Life. People are living longer. They need a life annuity to pay them an income for a lifetime.
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