My View on Latest Curb on Property Loan

With the latest curb in the property loans, the MAS has said it’s not measure to cool soaring prices. It’s said the rules will help strengthen credit underwriting practices of financial institutions and encourage financial prudence among borrowers. More information: Read ChannelNewsAsia.

Let us take a look at what it means:

1) Total debts obligations must not exceed 60% or his gross monthly income: This rules applies to properties only. .

2) Borrower need to declared as the owner of the property. This changes are to prevent borrowers from getting round tougher limits for second and subsequent housing loans.

The two main concern listed as above with the rest are minor changes (which I don’t intend to go into it) . Let us see what the changes will affect us as borrowers.

1)60% loan limits, it is applicable to the property loan only, all other debts that the debtors incurred, such as, renovation loan does not fall within the framework. In short, property owner-would-be should buy the property before getting other debt committment.

2) The borrowers need to declared as owners as property-would-be would try all means to bypass the LTV in order to secure higher loan amount when purchasing the property.

In short, the latest measures is a good start as MAS introduce the TDSR framework. It’s help to control our debts ratio before serious implication happens like retrenchment. But I would like to see more active MAS roles in other areas. Below are my suggestions to MAS to review and implement the followings:

1) TDSR should included in all loan applications not just property loan. The other applications like vehicle loan, short term loan, renovation loans. Although this can be review by MAS  in different TDSR limits.

2) Credit card debts should included in the TDSR as this tend to be the main source of debts people incurred ( sometimes more than their 3 times their monthly gross incomes. MAS should implement that the credit card a person have in total should no be more than 3 times of the monthly gross income.

3) Vehicle Loan curb should be review as well, the current curb on the vehicle loan of 50% to 60% loan amount is sometimes less desirable to some people in need of the vehicle. Using the TDSR will be more a productive ways to curb the ever-increasing of COE prices. This at the same time able lower-income to apply for higher loan amount in vehicle loan within their TDSR.

Overall, the TDSR is a good start and more can be done with the recommendations given above will ensure that people will not overspend their expenditure.

Debunking the official myths about HDB flats (Part 3): Rising prices of HDB flats generate wealth for Singaporeans

THE TEMASEK TIMES

MYTH # 3: Rising prices of HDB flats will lead to wealth creation for Singaporeans.

TRUTH: It will have a negative wealth impact due to higher financial liabilities according to a NUS study done by Abeysinghe and Gu Jiaying

In a reply to question from a MP who asked if a cap should be imposed on rising HDB resale prices during a Parliamentary session in July, Senior Minister of State for National Development Grace Fu noted that HDB flats remained affordable to Singaporeans.

She said:

“‘HDB flat prices should be a reflection of Singaporean’s wealth and it is “not a bad idea” for prices to increase steadily, especially for those holding onto negative assets bought in the previous market peak in the mid 1990s.’”

The ruling party has never failed to remind Singaporeans that it has brought about high home ownership and rise in asset value under its rule.

During a speech given…

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Debunking the official myths about HDB flats (Part 2): HDB flats are affordable to the most Singaporeans

THE TEMASEK TIMES

MYTH #2: HDB flats are affordable.

TRUTH: HDB flats are affordable only to a minority of Singaporeans and is increasingly priced out of the reach of the average worker.

In spite of the relentless rise in HDB prices lately, the government insists that HDB flats remain affordable to the masses.

Recent pronouncements by the Minister of National Development Mah Bow Tan and HDB officers in replies to concerned citizens in the Straits Times Forum have largely sticked to the official stance: that the government will not intervene in the market to bring the prices down.

Minister in the Prime Minister’s Office Lim Hwee Hua maintained that HDB flats are affordable to ordinary Singaporeans as they cost no more than 30% of their monthly pay.

HDB’s deputy director Mr Ignatius Lourdesamy wrote to the Straits Times Forum lately that HDB flats remain affordable to eligible first-time households as they use between…

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Debunking the official myths about HDB flats (Part 1): Singaporeans are ‘owners’ of their HDB flats

THE TEMASEK TIMES

MYTH #1: Singaporeans owns their HDB flats.

TRUTH: Singaporeans are merely renting these 99-year leasehold properties from HDB at exorbitant prices.

The Housing Development Board was set up in 1960 during a time when large numbers of people are living in squatter settlements and slums around the city centers.

Under the then indefatigable Minister for National Development Mr Lim Kim San, HDB began the task of solving Singapore’s housing crisis and resettling the squatters.

It built 21,000 flats in less than three years. By 1965 it had built 54,000 flats, exceeding the 50,000 target of its First Five-Year Building Programme.

Today, about 84 percent of Singaporeans live in HDB flats compared with only nine percent in 1960 when HDB was first established.

The ruling party has always prided itself for building homes to house the majority of the population. HDB has become its crowning achievement and the mainstream media never…

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A new Job portal for Singaporean

A new initiative by Transitioning.org – A online Job Portal for Singaporean (Link)

It is created in the facebook group and all Singaporean and employers are encouraged to join. This FB Group is to offer a new platform where employees and employers comes together to match the jobs in the market at no extra costs to all parties.

It had gathered more than 2000 members within 28 hours of operation. More noticeable members in the group are:

1) Gilbert Goh

2) Leong Sze Hian

3) Benny Se Teo

4) Vivian Pan

5) Lawrence Chong

Also, HR Personal are in the group to offer jobs to Singaporean locally or overseas.

More member are expected to join as this job portal truly served the needs of the Singaporean.

It doesn’t matter you are whether you are white collar or blue collar, employee or employer, you are welcome to join this new initiative.

Fallen cases of Ministry denying help to the needy

Yesterday, I was at the HLP to attend a speech by Vivian Pan to pledge for Mercy for the 31 year old women who had killed her son.

What keeps me thinking after the speech by Leong Sze Hian. In his speech, he had met with countless of single parent, be it unwed, divorced or the other partner run off with other party. What strike me the most when he shared, is the policy in Singapore are so rigid to sometime that these category of people falls into the trap.

Like Mr Leong had share, when the a couple divorced, in his case study, a single Mum had the option to buy over the HDB used to share with her ex-husband. But the HDB rules stated that she had to pay back the amount that her ex-husband had paid using his CPF. Thus she was forced to sell her flat.

She couldn’t afford to buy another new HDB flat as she had to wait for 30 months before she can apply for one again. If she want to buy a resale flat, given the current high COV, she couldn’t afford to buy it. Even if she wants to get a rental flat from HDB, she have to wait for another 30 months.

This single mum is one of the person that had fallen into the crack of the government policy. There are many more cases that are happening everyday in Singapore. So what can the Government do to help those cases that had fallen through the policy crack?

Here are my humble view towards all fallen cases:

1) Policies are in place to safe guard others from gaining unfair advantage while trying to help Singaporean.

2) In exercising the policy, the policy maker should be flexible enough to see special case like the one mentioned above on the case by case basis. They shouldn’t outright reject the cases when it doesn’t falls into the category.

3) In the above mentioned case, the HDB should apply the human touch and let the single mum keep the HDB while letting her to work out the installment plan to pay back her ex-husband CPF contribution to the flat.

The policies had both side of the situation they faced and I don’t deny that to safe guard the policy, standard rules must be strictly follow. But in the light of the fallen case, I feel human touch should be applicable as well.

Civil Servant who carry out the policy should not be so rigged not to help the fallen case. If civil servant can’t help those fallen cases should help to expedite up to the ministry for review and see how best the ministry can help. So do not stop those fallen cases at the front desk of the ministry. Help each other as we are Singaporean!!!

Which Singapore Petrol Station have the best toilet?

Let me give a little write-up that is away from the Singapore affair. As you had known, I had been a taxi driver for nearly two years. My gosh, time flies… I’m two years older. Now I will touch on the little topic some drivers might be interested in. Toilets!!!!

When we are driving halfway, be it taxi driver or driving your own car, there is a sudden urgent need to use the toilet. I will write something about it although it’s grouse….

I will take my personal experience and write about it.

My 1st choice will be the hotel. When I am in need to use the toilet, my mind will instantly will think, where is the nearest hotel available for me to pee? Toilet in the hotel is always in top of the class for driver like me to go to use…

But sometime going to hotel not be best available option, the next most common place is Petrol Station. There are four main petrol station all over the Singapore, namely, Shell, Caltex, Esso and SPC. Below I will rate them to the choice of petrol Station accordingly to my reference.

My 1st choice will always be Caltex. They had over past two years upgrading their toilets and most now house inside the air-condition Mart. you can use the toilet in the air-conditioning environment. The plus point is, due to house the toilet inside the mart, they had to keep the toilet clean at all times. They can’t afford to have foul smell coming out from the toilet, in other word, their toilet is always heavily “perfume”. Thus their toilets are always a present place to go to.

The picture of the toilet station in Caltex

My second choice is the ESSO station. They are about the same as Caltex but most located outside the Mart. Although some of them located in the Mart like the station off Durearn Road (beside BMW showroom). This become my second choice just because it’s located outside the mart (due to no Air-conditioning of the toilet).

My Third Choice will be Shell Station.

They had upgrade their station few years ago and their toilets are clean at least three times a day. They might not in tip-top condition but it is useable. But be prepared to standby some tissue paper as most of the time, the toilet paper is always not available.

My Last choice will be SPC.

This is the petrol station which I will be avoiding as it’s smell in the toilet and the toilet is always dirty. It might due to lack of upgrading and prolong usage of the toilet. Also Tissue paper is always a “Must Have” thing when using their toilets. The toilet paper is almost non-existence.

This is the choice based on the toilet I have visited so far and it only represent the male toilet (of course I can’t use the female toilet right?) Maybe some female driver can update us their choice of toilet in my comment column to share with other drivers.

Productivity in Singapore on the decline

In the news, the productivity rate in Singapore on the decline even through the our GDP is increasing with ever-increasing of workforce mainly from other countries.

Based on Wikipedia:

Productivity is the ratio of output to inputs in production; it is a measure of the efficiency of production.

Productivity has many benefits. At the national level, productivity growth raises living standards because more real income improves people’s ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth is important to the firm because more real income means that the firm can meet its (perhaps growing) obligations to customers, suppliers, workers, shareholders, and governments (taxes and regulation), and still remain competitive or even improve its competitiveness in the market place.

So the main question is: Why there is a decline in productivity despite more manpower and employee putting in man hours?

According the Gilbert Goh in transitioning .org, our workers are overly exploited. Yes, it’s overly exploited!!! I have come across PMET working every day from 9am till 1am the next day and the pay is pathetic.

Now I’m not going to talk about pay in here. I’m more interested in the real reason behind the decline of productivity decline.

1) More foreigner than local. Lots of foreigners are coming to Singapore to work.

We all know that in the service sectors like food industry, phone operators, construction worker and PMET. We don’t hate foreigners but the rate of foreigners coming into Singapore at such an astonishing rate, thus skill level of the foreigners are on the decline.

Quoting an example, in the telephone operators, mainly operated by the Pinoy and the Indian, like LTA, Banks, Singtel etc. Ask yourself a question: How many time do you need to call the operators to solve your problem comparing 10 years ago and now?

For me, I had to call Singtel, or DBS at least 2 to 3 times before my problem is solved. That why, today I only speaks to local operators.

Companies are arguing that local do not want to be telephone operators. Somewhat I agreed. Being a phone operator, they need to endure to nasty and rude customers. That’s not the main problem. The main problem is the pay. How much do the company willing to pay before a local consider this as a job? Less than a thousand dollars pay will continue let the companies into difficulties in getting locals to work in that industry.

Why not the companies pay a bit more like $1500 to $2000 to engage the local to work as telephone operators? As telephone operators are “Cost Center” to them, they would like to minimise the cost as low as possible. But in return, they had a trade-off of low productivity. This translate into productivity cost the company itself and productivity of the caller as well.

Also another reason the could be: telephone operators (foreign operators) work with their head but not their soul (This is what I feel). They do not really understand what our problem well and we had to repeat and repeat again to get the message through.

This kind of problems we had faced day-in day-out in today’s context. Not just in the telephone operators but in the service industry .

2) Too many Standard Operating Procedures (SOP)

In order to safe guard the company or industry interest, there is always a SOP for all to follow. Don’t get me wrong! SOP is a must have to safe guard the interest of the company. But complicated SOP will sometime leads to employee confused themselves. Thus they need to ask around to make sure that they are following the SOP closely. This is total waste of time and man hours for the company.

A general and simple SOP will enough for all the employee to follows thus allowing more free play by the employees and easy understanding by them. Reduce unnecessary paperwork so they can cut their workload in a single case.

3) Top-down micro management

The top management do not really trust their subordinates and any questions and procedure that are out of the SOP need to sought the approval from the management. This create an unnecessary time wastage as subordinates are afraid of infringing the SOP set down by the management.

Sometime, when a decision finalised and pass the information down. Often than not, subordinates just follows and don’t question them. They are afraid to bring out the concern to the management about the decision made mainly afraid of offending their management.

Communication is a two-way thing and it is not a top-down communication. Management should not feel threaten when a concern raised.

4)  Job Hopping

There is a trend that job hopping is on the raise. This really bring down the productivity rate of the company as they need to hire new staff, train them all over again to get them familiarise with the working system in the company.

Company should work together with the employees. It must treat the employees as a family members. Employees must have balance work-life. Employees are not the slave of the company and don’t expect them to serve you 24/7. They have their families too. Money is never the major issue if the company creates a good work-life environment for their employees.

Why people job hopped is mainly due to work stress and lack of work-life balance. Money is another reason that people job-hopped, given all companies lack of work-life balance, they will choose the company with the higher compensation of their pay.

Given a choice, would an employee work-life balance company job hopped to another company that offer slightly higher package but with higher stress level and lack of work-life balance? Most properly not as they will tend to enjoy their work in the current company than going to other company. People will also resist changes to their current lifestyle (if given a work-life balance environment).

In order to increase productivity of the company, work-life balance is the way to go. Companies should treat their employees as family, retain staff and open management (open discussion with subordinates). Without all these factors, GDP will only continue to increase with the ever-increasing manpower.

Tip on getting a taxi during Peak Hours and Rainy Days – Part II

Following my recent post on the tip to commuters to get a taxi during peak hours and rainy (Link). Generally, commuters would like to know more what other ways you can get a taxi apart from the tips I had listed before.

Here are other few tips to I would like to offer with my personal view and feedback from commuters that had taken my taxi.

1）Regular Taxi pick up 

In the rush hours and you are a regular taxi commuter, this tip might be useful to you. Have a regular taxi pick-up from your home everyday or going home everyday, you can do that by doing these:

I. Ask the taxi driver if he is willing to pick you up at certain time of the day. God knows if he is just starting his shift and he live near your place and he might not mind picking you up and ensured that he will have a good start for the day everyday. The question is: Do you might asking and do you like his service?

I got a regular booking from my place to UE Square at the early hours of 4.30am from a sister of the commuters. The sister got my contact through chit chatting while on the way back from Clarke Quay. She happen to know that my shift starts in the morning at 4am and we are living very close to each other (10 minutes walking distance). She just ask me if I mind taking her sister to work in the weed hours and she will feel safe if there is a regular taxi to pick her sister fortnightly.

She just did that and she got it. So commuters, no harm asking!

II. Call up the taxi company, quoting my taxi company, you can call up 6555 8888 to SMRT to talk to the operator ( please do this during the off-peak hours). Talk to them and says that you would like to have a regular taxi to pick you up. The operator will take down your information and send a message to our system requesting interested driver to call our contact center if they are keen. Usually our call center will give your contact number to up to max of 5 drivers to contact with you for the private negotiation.

2) Why call only comfort/citycabs?

A lot of times, commuters call us up (SMRT) when they couldn’t get hold of the taxi from comfort/citycabs. A lot of times, I would tell them an analogy:

If 1 million commuters are calling them (comfort/citycabs) at the same time, what is your success rate even though they have more than 16,000 taxi on the road? You will know the answer yourself.

My point is, try other taxi companies like SMRT (6555 8888), Trancabs (6555 3333). So save up these two phone number now!!!. Alternatively download the apps for SMRT – “SMRT – Book a Taxi”.

3) Try SMS Booking

Sometime, due to heavy call usage, you might not able to connect to the main line. The fast and easy method is using SMS. Below are the SMS method you can use

SMRT

Send sms to 75588.

For current bookings, type Book<space>Postal code<space>#Pickup Point.

For advance bookings, type AdvBook<space>Postal code<space>#Pickup point<space>#Pickup time(24 hour format)<space>Pickup date.
Comfort/Citycabs

SMS-A-TAXI – 71222

	Method	SMS Format	Example : Suntec Tower Four, Taxi stand
To SMS-A-TAXI using	Postal code	BOOK <space> Postal Code <space> #Pick-up Point	BOOK 038986 #taxi stand
	Address	BOOK <space> Building Name, Block Number, Street Name <space> #Pick-up Point	BOOK Suntec Tower Four, 6 Temasek Boulevard #taxi stand
	Fastcall Pin Code	FC <space> Fastcall Pin Code	FC 10041

Example of CBD taxi stand: Lucky Plaza BOOK <space> taxi stand no. <space> #taxi stand BOOK A01 #taxi stand

Other SMS Features

		SMS Format
Can I cancel my current booking using SMS?	Yes. Just send CANCEL to 71222 and our system will cancel the booking made under your mobile number. This will apply to all current bookings made using other methods as well.	CANCEL
Can you tell me, my most probable pickup addresses from my previous booking records with Comfort/ CityCab?	Yes. Just send AUTO to 71222 and our system will match the 2 most probable addresses under your mobile number and SMS back to you.	AUTO
Can I find the postal code of my address?	Yes. Just send FIND  Bldg Name, Blk No., St name	FIND E.g. FIND  Suntec Tower Four, 6 Temasek Boulevard

4) Hail a taxi on the street

In the morning peak hours and you do not wish to book a taxi, you need to stand on the street with the correct directions.

I. Monitor yourself where the taxi will comes from which directions

II. Try to stand at the front of the street that taxi would come in from. If you are standing at the other side of the road (eg. end point of the street), consider standing at the other side of the road. It might cost you a detour or a little higher fare, but does that matter than getting a taxi?

III. Look out for “Hired” taxi turning into carparks. The taxi might just be dropping off a customer.

IV. Raise your hand immediately once you spotted an empty taxi. Taxi driver tends to speed up to the 1st hand to raise to flag for the taxi.

Other interesting read

Read up my drinking kaki, James’ blog: http://cabby65.blogspot.sg/

Once again, I wish to thanks Mr Tan Kin Lian, My Real Singapore to post my previous articles in their Facebook/website.

Mr Tan Kin Lian –  https://www.facebook.com/kinlian

The Real Singapore: https://www.facebook.com/therealsingapore , http://www.therealsingapore.com/

I hoped that with this post, commuters would successfully get a taxi without any difficulties. This post is written with my utmost abilities driving taxi which less than 2 years of taxi driving experience. Feel free to leave me a comment if you would like me to suggest other ways of getting a taxi or during peak hours in your estate.

How many Singaporean in the banking industry?

A few days ago, in the newspaper, it reported that the lowest ratio of Singaporean/PR to Foreign Talent in the bank is 70% local/PR. Namely the Citibank, Standard Chartered Bank, DBS etc.

Look Again!!! 70% Local and PR are employed in the Banking industry. What does it tell about?

To me, they are hiding some of the details:

1) At what percentage is Singaporean in the management level?

2) What ratio is Singaporean compare to PR?

All along the above statistic is not made known to us! We should demand the government to give us an answer for that.

Now I will deliberate more on point no 2 – What ratio is Singaporean compare to PR in the Banking Industry.

Most will agree that the banking industries is full of Indian and Pinoy and other nationality. We would hardly see Singaporean (which I say Singaporean have becomes minority in the industry.

They have categorised Singaporean and PR together to let us know they indeed employ locals. But Hey!!! We would like to see more data! What is the real ratio of True Blue Native Singaporean vs others.

In my speech at the press conference in the May Day Protest in Hong Lim Park organised by Gilbert Goh:

Press conference after May Day Protest at Hong Lim Park

Jump to 25th minutes of the play that I had spoken about the issue.

Although EP is not counted in the quota system (Not considered as Foreign quota). But when a foreign talent becomes a PR, this will increase the foreign quota that the company can employed. Thus this will enable to company to bring in more foreigner to Singapore instead of looking locally for a suitable candidates. This is true if the company is headed by a certain nationality.

Even Acting Minister for Manpower Tan Chuan–Jin, had acknowledge that workplace discrimination against Singaporean in the work place.  They are now focus more on fair employment practices by TAFEP.

It is time that PR should be separated from the foreign quota as only Singaporean should be allocated at least 60% for the company instead of 70% inclusive of PR. I hoped that Acting Minister for Manpower Tan Chuan–Jin would seriously consider implementing the suggestion of separating PR from the local workforce. This will give Singaporean a fair chance in the industry.