Tuesday, December 29, 2009
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.
Monday, December 28, 2009
Alternative to Travel Insurance
I took two long trips in 2009, to Alaska and to Sichuan. Each trip was for more than a week. I decided not to take travel insurance, and to bear my own risk. My wife wanted to take travel insurance (as she is more risk averse) but finally decided against it.
I already have a large cover under a personal accident insurance. If there is an accident, it will be covered under this annual policy.
The travel policy covers loss of luggage, flight delay and other risks. But the amount of compensation is quite rather small, say $100 or so. It will be quite troublesome to make a claim for such a small sum. If I fall ill during the holiday, the medical expenses may cost a few hundred dollars. But the chance of making a claim is rather low.
I have taken more than a 100 trips during the past years and have never had the need to make a claim. I do not buy travel insurance for these trips. If the chance of a claim is 1 in 100, it is worth taking the risk. The premium saved on 100 trips would more than cover any future claim.
Tan Kin Lian
I already have a large cover under a personal accident insurance. If there is an accident, it will be covered under this annual policy.
The travel policy covers loss of luggage, flight delay and other risks. But the amount of compensation is quite rather small, say $100 or so. It will be quite troublesome to make a claim for such a small sum. If I fall ill during the holiday, the medical expenses may cost a few hundred dollars. But the chance of making a claim is rather low.
I have taken more than a 100 trips during the past years and have never had the need to make a claim. I do not buy travel insurance for these trips. If the chance of a claim is 1 in 100, it is worth taking the risk. The premium saved on 100 trips would more than cover any future claim.
Tan Kin Lian
Bad experience with land banking plot
Dear Mr. Tan,
Some years ago a good friend of mine purchased some UK Land Banking plots. She was so blinded by the opportunity that when I questioned it we fell out for a while. She could not believe that such opportunities could be allowed in Singpaore and advertised on the TV if they were not true. She was not particularly greedy in fact I found her to be a very kind and gentle person.
Like many of us she wanted an opportunity to help her get ahead in life and be secure. The upshot was she has lost a significant portion of her savings to a scheme that has no chance of success.
I felt ashamed that such things could happen in the UK. After investigating and contacting some UK local authorities I was horrified at the way these schemes are run. They are designed to have absolutely no chance of success and to extract as much money as possible from the unfortunate investor.
Unfortunately what i've also discovered is that defamation law makes it very difficult to criticise a scam unless it is almost 100% proved especially in Singapore. It seems the only way to prove a scam without time and huge resources is to wait for the company to fail.
Even then typically the company will restart 2 or 3 times under different names claim mismanagement by a single executive and take more money from their loyal customers.
SF
Some years ago a good friend of mine purchased some UK Land Banking plots. She was so blinded by the opportunity that when I questioned it we fell out for a while. She could not believe that such opportunities could be allowed in Singpaore and advertised on the TV if they were not true. She was not particularly greedy in fact I found her to be a very kind and gentle person.
Like many of us she wanted an opportunity to help her get ahead in life and be secure. The upshot was she has lost a significant portion of her savings to a scheme that has no chance of success.
I felt ashamed that such things could happen in the UK. After investigating and contacting some UK local authorities I was horrified at the way these schemes are run. They are designed to have absolutely no chance of success and to extract as much money as possible from the unfortunate investor.
Unfortunately what i've also discovered is that defamation law makes it very difficult to criticise a scam unless it is almost 100% proved especially in Singapore. It seems the only way to prove a scam without time and huge resources is to wait for the company to fail.
Even then typically the company will restart 2 or 3 times under different names claim mismanagement by a single executive and take more money from their loyal customers.
SF
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