Sunday, February 28, 2010

Different functions of Government

REX has written about the macro and micro functions of politicians. They have to see the big picture and make macro policies. They have to attend to the nitty gritty of listening to their constituents. It is difficult to find people who have both skills.

In the USA, the elected members of Congress listen to their constituents and debate policies in Congress. Their primary role is to represent the people.

The heads of the different departments in Government (i.e. like our ministers) are appointed by the President, usually with the approval of Congress. They can be selected from anywhere in the country, i.e. from the business sector, academia, the people sector or from elected politicians. If they are appointed from elected politicians, they have to resign their elected seat to be in the Executive Branch of Government. Their seat is taken over by another person who can discharge the role of representing the people.

In UK, the ministers rely on the senior civil servants to administer the policies decided by the Government. They do not manage the administration. They remain largely policy making.

Singapore has a unique system where the Ministers play all three roles. They are over-stretched and do not have sufficient time and attention to discharge these roles properly. This is my humble view.

I prefer the system in USA followed by UK .

Tan Kin Lian

Missing the boat

Some people are worried that they have missed the boat and that property prices will continue to go higher.

They should not worry. Inflated prices will come down. Look at what has happened in Japan, USA and Europe. They went through their property bubbles and prices have dropped. It will remain low for one or two decades.

Singapore is not exempt from these forces. If prices are inflated and at unsustainable level, they will surely fall. In the meantime, be calm. Rent a flat or house. Wait for the prices to fall.

Tan Kin Lian

Train your mind

These puzzles will help to train your mind. It is fun, challenging and beneficial for children, adults and seniors. It helps you to develop a flexible mind and think "out of the box". This skill is important for Singaporeans, who tend to have a rigid mind and are fearful of trying something different. The puzzles are free and can be downloaded here.

If you are interested to have more puzzles, you can buy the books here. Share the books with members of your family. Invest a few dollars and help your family members to be innovative, creative and flexible. The books contain tips on how to solve the puzzles. Buy them as gifts for your children and grand children.

Survey: Elected Member of Parliament

I have now updated the report based on 92 replies here. The dislike for the current government is overwhelming. but this may be exaggerated due to the potentially biased sample. You can also read the detailed comments submitted by over 20 respondents.

Traffic after the Lunar New Year holidays

On the first few days after the Lunar New Year, the \re was reduced traffic on the roads as most workplaces were still closed. It was wonderful to drive along the roads, without the excessive congestion. How nice life would have been in Singapore, without the crowds and congestions. It was also easy to find a parking space.

Can Singapore afford to have the same roads and parking spaces, if it has a smaller population? The answer is "yes". There are many suburbs around big cities where there are ample roads and parking spaces. It is possible for a community to afford a higher ratio of roads and parking spaces and still be viable.

Businesses in Singapore are allowed to squeeze customers for the last ounce of profits. They pursue profit maximization without regard to other factors, such as the quality of service. This is the reason for the high cost of living and the poor quality of life in Singapore. This is why the MRT trains are crowded and fully packed, even late at night.

We need better regulation to ensure that businesses provide a standard of service that provides comfort and a better quality of life of the customers. They can still be allowed to make a reasonable profit after meeting these standards.

By allowing many foreigners to live and work in Singapore without expanding our public infrastructure and  facilities, the Government is also pursuing a similar goal of using our resources to the limit, and creating a poorer quality of life for the people. This type of bad policy should be avoided.

Tan Kin Lian

Staff quarters

A person needs a home to live in. The cost of the home should represent a fair proportion of the earnings. It should not take an excessive proportion. If you are buying a home that will last for a lifetime, you can set aside 25% of your earnings for the house. If you are renting, you should set aside 15% of the earnings.

In the olden days, a government employee (or servant) is provided with residence (also know as "staff quarters") by the government. While the government employee earns a lower salary compared to a private sector employee, the government employee does not have to worry about paying for the home. There is another advantage - the staff quarters are usually located near the place of work.

Government employees that earned a higher salary was able to afford a house in a private estate. In the old days, the price of houses were affordable and bear a reasonable proportion to the average earnings.

This situation changed during the past 25 years, when prices of houses were allowed to appreciate excessively. Initially, people thought that they were getting wealthier. Later, they realize that they were paying too much for a home and have to slog for a lifetime to pay the inflated prices. Most of the wealth went to the land owners, of which the state is the biggest.

Unfortunately, the high price of land and housing is now being used to "enslave" people to work hard for a lifetime.

Tan Kin Lian