Nizam Ismail’s “Response to MCCY Letter – My Intentions being Misperceived”.

With the Malaysian election as little more than racial politics on steroids, what about Singapore with the Nizam Ismail storm in a teacup few days ago?

Nizam Ismail’s main purpose in issuing his response is to debunk the government’s assertion that he is promoting race-based politics, and that he has used Association of Muslim Professional (AMP) as a platform for self-promotion .

He goes to great length to explain that Community Forum (ComFor) was not created for the purposes of pushing a Malay agenda. He clarifies that ComFor is rather an extension of Community in Review forum (CIR) and is meant to track strategies of the AMP Convention.

Nizam has however failed to convincing explain the necessity for a new forum to track CIR. What he essentially did not say, or cannot say, is that his vision for ComFor was to push for community-based approaches to be included within the national approach adopted by CIR. ComFor would do what CIR could not officially? ComFor is a watchdog group if you like, to make sure the rights and privileges of the Malays are front and center.

Nizam is also known to have used other platforms on social media (e.g. Suara Melayu Singapura) to argue for an alternate political structure for the Malay community. This comprises a system whereby the Malay community nominates its own leaders. This is clearly a political model of racial representation to advance Malay interests, and “Collective Leadership” by another name even. Incidentally, “Collective Leadership” was frowned upon by the government years ago and made know to AMP as it was too racial in its politics.

Nizam kept saying his ideas are made on a personal capacity basis despite his positions within AMP and its subsidiary Centre for Research on Islamic and Malay Affairs (RIMA). What it means is that he is pushing for Malay affirmative action in one platform, and claim to focus on the national approach on the other. In so doing, he is merely attempting to mask race-based politics under the guise of class-based programs.

A central point to his proposed class-based programs would be whether he is championing for Malays to have priority in the receipt of state funds. As it already stands, assistance schemes and programs are dished out at the national level, and dispersed progressively based on the principle that those that are most in should receive them first.

Is Nizam therefore suggesting that Malays in need of economic assistance form an under-class of their own? How is this a national-level or fair class-based initiative as he claims to espouse?

Confusingly, in his blog post he argues that race-based self-help groups perpetuate cultural stereotypes or myth of race-based deficiencies. This statement runs contrary to his actions as he took the advantage of AMP’s race-based machinery anyway to advance Malay interests, instead of working in a race-neutral enterprise. He is an advocate of racial politics. Clearly, he has not been misperceived.

Off to a Good Start on Core Issues in Parliament

With more opposition presence in parliament, the debate has gotten with a good start generally. Lina Chiam  is not holding her flag high and steady. While her idea on helping hawkers is worth looking into, her party’s idea to allow singles below 35 to own their own HDB flats once they reach 21 is quite preposterous.  HDB is already rushing to build flats for newly married and now they have to cater to singles? The resale market is already bullish and singles entering the market now would only drive demand and therefore prices up. Of course sellers would be happy.

Following up on Chen Show Mao‘s  stress on investment in healthcare and education for Singaporeans and Singapore’s human capital, Gerald Giam on the other hand is riding in fast and hard, showing that the WP is tackling headon heartland issues as a priority – health, house and transport. However, WP’s Muhamad Faisal stumbled to talk about the economy and negative externalities, oversimplifying the casino issue. To be objective, the PAP also touched on core issues like healthcare, transport, but the curiosity and excitement centres on WP naturally as their number of MPs has increased 6-fold in parliament and there are high expectations.

Focus on those who fall through the cracks
By Gwendolyn Ng
my paper
Wednesday, Oct 19, 2011

Hot-potato topics such as housing, health care and education dominated the parliamentary debates yesterday as the House focused on the plight of Singaporeans who have fallen through the cracks.

Many MPs highlighted a nagging concern of many young home buyers – the affordability of Housing Board flats.

Mr Ang Wei Neng, an MP for Jurong GRC, called on the Government to lower flat prices and give more subsidies to first- time buyers.

He added that these could come with caveats, like raising the minimum occupancy period to 15 years from the current five years, or for housing subsidies to be paid back if the flat is sold before the minimum period.

Mr Ang said: “Many Singaporeans feel that what they need is a roof (over their heads). They do not need to encash their flat; they do not want to be slaves to their houses.”

Non-Constituency MP (NCMP) Lina Chiam of the Singapore People’s Party asked for the criteria for buying flats to be relooked, as they may no longer be appropriate.

Currently, to qualify to buy an HDB flat, one must either be married or be 35 years or older, she noted.

Mrs Chiam said: “I urge the Government to reconsider these restrictions and allow Singaporeans to buy their first HDB flat… when they reach the age of 21.

“By the time a citizen reaches 35 years old (and wishes to buy) a flat, the price of the flat may have tripled and be out of that person’s reach.”

Similarly, affordability was in the spotlight on the issue of health care.

Workers’ Party NCMP Gerald Giam highlighted how Singaporeans worry about high health-care costs and suggested that the 3M health-care model could be tweaked.

The 3M model refers to Medisave’s compulsory medical savings, MediShield’s basic health insurance and Medifund’s government aid for the low income.

As an example, Mr Giam said 60 per cent of the elderly’s medical bills were paid from their children’s Medisave accounts in 2005.

This is “a departure from the principle of self-reliance”, he said, and the situation could be compounded if the patients’ children are low-income earners, which is “often the case”.

So, he argued that the Government is “asking one disadvantaged group to pay for another”.

His suggestions to address cost concerns included expanding the coverage of MediShield and providing assistance to those who cannot afford the premiums.

Dr Chia Shi-Lu, a Tanjong Pagar GRC MP, suggested giving additional rebates pegged to the patients’ age.

He pointed out that medical costs incurred tend to increase as patients age and the elderly receive the same amount of health-care subsidies as younger patients in most areas.

“I hope that further provisions can be made to help buffer the elderly and carers from health-care costs,” said Dr Chia.

In the face of an ageing population and smaller families, MP for Jurong GRC Halimah Yacob said that the pressure on caregivers will escalate.

So, she urged the Government to provide more accessible and affordable home-care services.

She pointed out that caregivers also need to be looked after, by providing them with care, because they will age, too.

On tertiary education, Mr Ang suggested extending subsidies to reputable private universities here, other than SIM University, to help more Singaporeans further their education here.

He said: “As Singapore gears itself towards a knowledge-based economy, we will probably need more graduates and not less.”

Assure, Ensure, I’m Not So Sure

Star cancer geneticists Neal Copeland and Nancy Jenkins who arrived here in 2006, called it quits in 2011. Singapore can recruit but can’t retain. They and other researchers find Singapore stifling still whatever the National Research Foundation pulls out of its hat to have foreign brains drive our research industries.

The global economy with US and Europe  pulling everything down, is uninspiring. Singapore is small and our manufacturing and export-oriented economy would be knocked around and there is nothing our overpaid ministers can do.

However, our tax structure and burden is sustainable as there is no serious aging population and immigrants here contribute to direct and indirect tax. On people-centred growth and a skilled workforce, Singapore is expensive compared to the competition and bringing foreign skilled workers might keep labour cost down. However there is ever growing resentment towards foreigners in Singapore as there is the misconception that foreigners are stealing jobs from locals left, right and centre.

The year ahead in Singapore is as uncertain and shaky as the global economy and no amount of assurance by the new government can make us feel confident.

 

Govt to ensure economic growth
Long-term strategic plans to ensure sustained and inclusive economic growth for Singapore. -myp
Reico Wong
Wed, Oct 12, 2011
my paper

Four government ministries and agencies unveiled their long-term strategic plans yesterday, following President Tony Tan Keng Yam’s opening address to the 12th Parliament on Monday.

At the forefront of their agenda was the common pledge to ensure sustained and inclusive economic growth for Singapore.

Deputy Prime Minister Tharman Shanmugaratnam yesterday cautioned that headwinds from slower global growth, stemming from uncertainties in developed economies, will mean slower growth in Singapore in the next few years.

“We must steer a path that enables Singapore to respond to these challenges, transform the nation’s capabilities and help our citizens achieve higher standards of living,” he said.

Monetary Authority of Singapore

To remain vigilant against a resurgence of cost pressures, even as inflation is expected to moderate towards the year’s end.

To conduct regular stress tests on Singapore’s financial sector and work with other agencies to secure and strengthen overall financial stability.

Banks will be required to maintain prudent capital buffers, in line with and in addition to Basel III minimum requirements. The risk-based capital framework for insurance companies will also be enhanced.

To impose stronger safeguards in the sale of investment products to retail investors, and to step up financial-education efforts to help them make informed decisions.

To continue to deepen the talent pool to build strong and distinctive capabilities in the finance industry, which is expected to remain a key growth engine for the Singapore economy.

National Research Foundation

In the next five years, the NRF will seek to strengthen the considerable expertise in research and development to attract talent, generate intellectual property and enhance Singapore’s competitiveness in a globalised world.

The five Research Centres of Excellence will provide opportunities for some 800 PhD students to be trained. The NRF Fellowship Programme will enhance Singapore’s intellectual capital, with top young scientists – local and foreign – undertaking research in Singapore.

The Competitive Research Programme provides research grants to local researchers from universities and the industry.

The National Framework of Innovation and Entrepreneurship will help to translate the treasure trove of knowledge from tertiary and research institutions into applications and products to benefit Singapore’s economy and society.

Ministry of Finance

To maintain a sound and sustainable fiscal system, with a resilient revenue structure to meet higher spending needs in areas such as transport infrastructure and education.

To ensure that the overall burden of tax on Singaporeans remains low by global standards.

To keep the tax system progressive and ensure that government transfer schemes provide targeted and effective aid to lower- and middle-income households in need. It will also simplify tax administration and enhance tax certainty to continue to support Singapore’s pro-business environment.

To maintain a framework that enables the Government of Singapore Investment Corp and Temasek Holdings to pursue investment strategies that generate sustainable portfolio returns.

To support and catalyse efforts to raise skills and improve quality of jobs in every sector.

To encourage co-contributions from charitable individuals and companies through significant tax deductions, and matching grants for donations.

Ministry of Trade and Industry Singapore

To focus on ensuring people-centred growth, by investing in equipping workers to take on higher-skilled jobs through training and upgrading.

To step up efforts to re-position Singapore’s economy towards value-added and more- productive sectors.

This includes expanding the range of offerings in the logistics and professional-services sector, and raising the standard of tourism offerings. Emerging clusters, such as clean technology and media, will be developed.

To review existing free-trade agreements to ensure their relevance and accessibility to small and medium-sized enterprises, and to continue to expand trade linkages with emerging markets.

To reinforce Singapore’s position as the gateway to Asia – the centre of dynamic growth now – and the best location for both the expansion and headquartering of global companies.

A GST Promise by Tharman

Echoing what PM Lee claimed some weeks back that the budget is sound and there is no need to increase GST after the GE, Finance Minister Tharman himself re-assured locals that an expected increase of GST to 10% after GE is not in the pipeline for at least 5 years.

Can we trust the PAP government to keep to its promise? Particularly as this pledge to keep GST at the current 7% is not without conditions. The PAP arguably failed to keep its pre-GE 2006 promise of lower healthcare costs  and what would prevent it from going back on its word for delaying a GST increase for at least 5 years?

Nothing. As the PAP can simply come up with real or imagined reasons especially if they continue to dominate the 87 seats in parliament from May onwards. In 2006, the PAP explained away the need for GST to increase from 5% to 7% after GE 2006 by reasoning that the increase in the regressive tax was to help the poor in a ridiculous Robbing Peter to Pay Paul policy. That is the outcome if the PAP has a control over parliament and can pass bills and policies without real competition.

GE: Tharman says GST will not be raised for at least another 5 years

SINGAPORE : Finance Minister Tharman Shanmugaratnam has reiterated that the goods and services tax (GST) will not be raised for at least another five years.

Mr Tharman said there is no need to raise the GST as Singapore’s budget is in a healthy state.

The GST was last raised from 5 per cent to 7 per cent in 2007.

Mr Tharman was speaking to reporters on the sidelines of a community event in Jurong on Saturday.

He said: “As Finance Minister, I have made that very clear in Parliament that at least for the next five years – it does not mean we will raise it in five years’ time – but at least for five years, there is absolutely no reason to raise the GST, because this was the whole idea – we strengthen our revenue base in time. In fact, in the good years before the crisis, it came in very handy in the crisis but it is also going to come in handy in the next five years when we build our infrastructure in health, in infrastructure and we increase our support for the poor.

“Basically, the GST and changes to the constitution have provided us a lot addition to our revenue base. Firstly, it has provided us to react very forcefully during the crisis, it wasn’t just the draw on the reserves…we were very fortunate that we made the revenue changes in time so that we could react forcefully to help Singapore through the crisis and now post-crisis, it has helped us to build up our infrastructure, education, health, including continuous education and training.

“That was the original motivation for GST, help the poor more and prepare Singaporeans for the future through investment income, two very solid sources of revenue to help us in the years to come.”

Mr Tharman also said that his team is taking the opposition seriously, whether they are well-known or otherwise.

But he said that the People’s Action Party (PAP) team has a track record in Jurong, having made many improvements for the elderly, children and low-income families in the last 10 years.

Mr Tharman added that aside from national schemes, Jurong also has its own local schemes that have benefited the residents there, and so residents already know what the PAP can do more and that they can deliver on their promises.

HDB, Homeownership and Singapore as Home

MM Lee Kuan Yew spelled out the role of public housing in making Singaporeans grow roots in Singapore. However, the public housing of the 60s and 70s to tie people down cannot keep up with the growing aspirations of today’s Singaporeans who want better and more bourgeois housing.

Back then, simple solid homes were enough. They were spartan to the myopic extent that there were no lifts built on every floor. Housing was arguably cheaper then, excluding inflation over the years. DBSS is the top of the line public housing now, and it comes with top of the line pricing in the public housing context. Over the years, HDB flats are better built and designed for the lower to middle income bands. There is deliberate policy to prevent public housing from becoming some council housing in the West where public housing is only for the underclass. This is also possibly an emerging trend in some countries like Japan where public housing is more and more for the middle income and this inadvertently affects its pricing.

For the new HDB home buyer, it is more expensive to buy a 4BR and it takes people longer to own their homes as the mortgage period is up to 30 years, and not by calculated financial choice. This is where public housing policy failed in recent years according to the expectations of the new HDB owners, never mind what the policy-makers think.

The HDB house is not totally a home but also a lead weight around the neck of its owners especially since the HDB gives a market subsidy, not cost subsidy, on its homes built for Singaporeans. Something that does not sit easily with Singaporeans who are increasingly priced out even when finding their first new public housing flat. They are the ones the government have to look out for if the government wants its rootedness policy is to be more effective. Of course unless these new aspiring homeowners want to buy a resale HDB flat in a centralised location rather than a new flat in an outer suburb. Then they should be at the mercy of the market.

Home ownership a ‘fundamental policy’: MM
04:46 AM Mar 23, 2011

SINGAPORE – When he took office in 1959, then-Prime Minister Lee Kuan Yew noted homes in fast-growing Asian cities comprised of small rooms which came with high rentals. “Therefore, they decorated their cars as if they were their homes. But these additions have no lasting value,” he said.

With that in mind, Mr Lee and the Government embarked on making Singapore a home-owning society and home ownership a fundamental policy. By the 1980s – and in “a short time” – the Government had housed 85 per cent of the population.

“If we had not helped our citizens to own their homes, Singapore would be very different,” said Mr Lee, who is now Minister Mentor. “Society would not be so stable. Our lives would have been worse off. They have valuable assets in their homes to protect against riots and civil commotion.”

Mr Lee made these remarks on home ownership – which is expected to dominate the hustings during the coming elections – during Saturday’s launch of the Tanjong Pagar Town Council’s five-year masterplan and ABC Waters at Alexandra Canal. The full speech was made available yesterday.

Mr Lee reiterated that home ownership gives every Singaporean “a sense of ownership”.

“Our families own their homes and are rooted to Singapore … Moreover, with National Service, every family must have a stake in a property to defend,” he added.

As Singaporeans take great pride in their homes, Mr Lee said, “it is crucial to prevent our estates from becoming urban slums”.

“As Singapore prospers, the value of their HDB homes also appreciate. Home ownership motivates Singaporeans to work hard and to aspire for a better future for their family, to upgrade to better and bigger flats,” he added.

While the Government has met Singaporeans’ basic needs, it has to “meet the rising aspirations” too, said Mr Lee, as he traced the “HDB story” which reflects Singaporeans’ social mobility.

Mr Lee noted that as younger families began moving out of the older HDB towns, for newer and more modern flats in the late 1980s, the Government introduced the HDB Upgrading Programme – providing new playgrounds, covered linkways, landscaped gardens and open spaces for residents to mingle.

In 1995, the HDB launched the Selective En Bloc Redevelopment Scheme, or SERS, to free up land in the older estates, and to replace them with higher-quality, higher-density flats.

In 2001, with an ageing population, the Government implemented the Lift Upgrading Programme.

“We are near the final phase of its completion, and works will complete by 2014,” Mr Lee noted.

The Minister Mentor stressed public housing cannot be allowed to become obsolete. Which is why HDB embarked in 2007 on its plan to rejuvenate the housing estates – starting with the pilot towns and estates in Punggol, Yishun and Dawson. Towns in Hougang, East Coast and the Jurong Lake areas will soon follow.

By next year, the Government will be laying out the next generation nationwide broadband network “so that everybody will have easy access to the computer, to all information that they will require, and they can video-conference with each other and with families abroad”, said Mr Lee.

But Mr Lee stressed: “We must build upon the strong foundation laid; continue to work hard, and share the fruits of our nation’s progress.”

Hurrah for the Budget? (Yes, for Income Tax)

As a budget with mostly one-off handouts e.g. growth bonus up to $800 depending on income and HDB flat size, this is a populist budget, an election budget or a pork barrel budget. To be brutally honest, it is a good budget for the masses.

We can naturally anticipate a higher GST after the election as that is the norm of the right hand giving and the left hand taking with any government, and hopefully the GST credits accompanying the higher GST to follow after the election is relatively adequate. But I look too far ahead and should focus on the budget at hand.

The selective decrease in income tax, more tax brackets and tax rebate is the most attractive for the middle income, the traditionally sandwiched class neglected in the government’s emphasis on the less privileged (with their conservancy rebates and GST credits) as the ultra-rich can take care of themselves. A 20% tax rebate capped at $,2000 is repeated.  The last time it was done was in 2008 and if this is done every 2-3 years, it is indeed lots of money saved for the taxpayer. There is also the significant decrease in tax for those earning less than $160,000 per year. Those earning less than $40,000 a year have an income tax of 3.5% instead of 5.5%, the biggest drop in tax rates actually among all the income tax groups.

While not everybody would be happy as greed is good, the government has probably appeased most of the middle class for now with the income tax revisions.

 

Singapore budget unveils cash grants, tax cuts
AFP – Saturday, February 19

SINGAPORE (AFP) – – Singapore on Friday unveiled more than a billion dollars in grants and will increase the tax firms must pay for hiring foreign staff amid expectations a general election will be called soon.

Lower-income Singaporeans will receive up to Sg$800 ($627) by May 1 as their share of the city-state’s record 14.5 percent economic growth in 2010, Finance Minister Tharman Shanmugaratnam told parliament.

“To share the fruits of last years exceptional economic growth, I will give growth dividends to all adult Singaporeans,” he said.

“The majority of Singaporeans — 80 percent — will get Sg$600 to Sg$800 each… The growth dividends will benefit about 2.5 million Singaporeans and cost the government Sg$1.5 billion ($1.18 billion) this year.”

Shanmugaratnam also rolled out income tax reductions and rebates aimed at the middle class.

Rising inflation and a massive influx of foreign workers in recent years are expected to be hot issues in elections that must be held within a year.

Tharman said levies on companies hiring foreigners will be raised next year in order to slow down the flow of guest workers mostly coming from China, India and Southeast Asia.

“If we do not take further steps now to raise the foreign worker levy, it will be difficult for us to prevent the proportion of foreign workers from rising over time, and exceeding our long-term target of one-third of the workforce,” he said.

With falling birth rates threatening its long-term economic prospects, Singapore rolled out the welcome mat for foreign workers during the 2004-2007 global economic boom.

But after the 2008 financial crisis, the government took a fresh look following complaints from citizens that foreigners were increasingly competing for jobs, housing, medical care and even space on metro trains.

Eugene Tan, an assistant law professor at the Singapore Management University, said the government would likely call elections before June.

“I think probably within the next… two to three months. The budget certainly puts it (government) in the good books of Singaporeans,” he told AFP.

“I think certainly the entire package sweetens the ground… This certainly is a very good position to go to the voters and seek their mandate… It’s as good as it can be.”

Property Buyers Strike Back

Especially now as developers might be rushing to build projects before the property market demand tapers off, shoddy workmanship could be the result. City Developments Limited‘s reputation is taking a hard knock here as their contractors cut corners and did a poor job. Water leakages in the car parks and units are the main problems and who wants a leaky apartment, regardless if it is a HDB or private one.

The condo at the centre of the controversy is Emery Point. The asking price for one unit at that condo is about $1.4 million for a 1300 sqft unit. So if you want to buy that condo and perhaps other CDL projects built around that time, caveat emptor.  It is surprising that this case had to go to court as CDL should have tried to settle it rather than allow this public relations disaster to happen.

Development Name:	Emery Point
Property Type:	Apartment
Developer:	City Developments Ltd
Tenure:	Freehold
Completion Year:	2005
# of Floors:	19
# of Units:	51

(source: Property Guru)

 

Condo owners sue developer, 7 other parties over alleged defects
05:56 AM Feb 08, 2011
by Leong Wee Keat

SINGAPORE – They allege that their basement car park has 280 points of water leakage, that their swimming pool has sharp surfaces that cut swimmers and ruin their swimwear, and that a third of their condominium’s 51 units are leaking rainwater.

These are some of the alleged defects that disgruntled unit owners of freehold development Emery Point, an 18-storey single residential tower at Ipoh Lane in Katong, are citing in a lawsuit against its developer, main contractor, sub-contractors and architect – eight parties in all.

As the case began in the High Court yesterday, City Developments Limited (CDL) said in defence that “some defects to the common property” arose from the contractor’s poor workmanship, even as CDL’s lawyer Ling Tien Wah argued that “there’s no such thing as a perfect building”.

CDL intends to show during the 10-day hearing that it is contractually liable to only two owners who bought their units before the completion date in September 2003.

“Caveat emptor applied to owners who bought units from CDL after the Certificate of Statutory Completion date and, as such, even if there are building defects, these owners have no remedy against CDL,” said Mr Ling.

But Mr Leo Cheng Suan, lawyer for the condominium’s current management corporation, said that as CDL’s managers were council members of the management corporation until 2007 and “fully aware” of the issues, the company had “shirked” its duty.

The management corporation’s role will also be highlighted by main contractor Hytech Builders and two sub-contractors, Heng Boon Seng Construction and Industrial Contracts Marketing, who claim that it failed to maintain the property and that any problems were caused by wear and tear.

But, Mr Leo feels, this “misses the point” as the alleged defects had surfaced early. “These defendants are only prepared to do cosmetic patch repairs at the very least possible cost: Grouting time and time again, applying silicone to try to stop the leaks for a few months until the silicone dries up and the occupiers scream at them again,” he said.

Tender prices submitted by three general contractors indicate that rectification work may cost between $512,380 and $626,350

Foreigners and the Bubbly Property Market

There is this symbiotic relationship going on between foreigners in Singapore and the property market. Foreigners, including PRs, are buying new and resale real estate. Foreigners are also renting in the prime 9, 10 and 11 to the suburban estates. Developers are happy, housing agents are delighted, sellers of HDB and private apartments are euphoric because these foreigners are snapping it up hungrily as Singapore builds itself to reach a population of 6 million. Imagine the immense shock to landlords and property owners who overextended in buying more than one property when populist rage for less foreigners in Singapore becomes policy?

The first to be hit would be the construction and real estate industries, besides dad-and-mom property investors as the foreigners would just pack up and go elsewhere. Nevertheless, nothing to worry for now as the government’s calm assuring voice that uptake of permanent residency and citizenship are slowing down i.e. there are still foreigners coming in and it is only that they are not intending to take more long term residence here, that’s all.

Still, foreigners are so intertwined into the local property market now, excluding the high profiles stories of Jet Lee buying a Bt Timah GCB. Their sudden departure is going to cause a serious property market correction. But that is a worry best tackled after the election the PAP hopes to think. Ask the PAP such difficult questions now, we should.

Dec 19, 2010
More foreigners buying new private homes
Low interest rates, stability help make Singapore attractive
By Cheryl Lim

FOREIGNERS were out in force in the property market last month, snapping up almost one in three new private homes in Singapore.

Market analysis from DMG & Partners Research shows that just under 30per cent of new private residential units were sold in November to foreigners or permanent residents (PRs).

This marks an 8-percentage point gain on the 22per cent seen in October.

The growth appears to come from Chinese buyers, who are increasingly making their presence felt.

DMG & Partners property research analyst Brandon Lee told The Straits Times: ‘They really started coming in during the fourth quarter of 2007. Previously their numbers were single digit, but now we have seen their group hitting sometimes up to 20per cent.’

Indonesians and Malaysians continue to form the bulk of foreign buyers, Mr Lee added, with Malaysians making up 25-30per cent of the group and Indonesians up to 25per cent

Fewer S’pore citizenship, permanent residency granted: report
By Joanne Chan | Posted: 17 December 2010 1853 hrs

SINGAPORE : Fewer immigrants were granted permanent residency and citizenship this year, according to the first Singapore Public Sector Outcomes Review which outlines challenges for the government.

Competition for jobs from foreigners, rising property prices and over-crowding in public transportation were among concerns raised by Singaporeans over the hot issue of foreigners and immigrants in Singapore.

In a sign that these concerns have been heard, the growth of citizens and permanent residents has slowed significantly to 1.01 per cent this year, compared to 2.5 per cent in 2009.

Recognising concerns over the influx of foreigners, the government has taken steps to manage this growth. These include tightening the framework for granting permanent residency and citizenship.

In addition, infrastructure for transport, housing and other amenities is being enhanced to accommodate gradual population growth.

The government has also said it will keep the foreign share of the workforce at one-third.

However, it added that with Singapore’s low fertility rate, the country must remain open to high calibre immigrants to boost the population and sustain competitiveness.

One sociologist said anxieties among citizens must be eased.

Professor Jean Yeung, a sociologist at the Asia Research Institute, National University of Singapore, said: “To affirm that local Singaporeans are the priority of Singapore society, making sure that their life is well taken care of, infrastructure is well, you need to increase the immigrants, but the local population shouldn’t feel threatened about it.”

Professor Yeung added that there has to be more education and outreach efforts to show the contributions that immigrants are making in Singapore.

Another issue for the government involves the CPF minimum sum requirement, where S$123,000 must be set aside for retirement.

In 2009, only 49 per cent of workers were able to meet the requirement upon reaching 55 years old.

This raises concerns over the ability of the elderly to depend on themselves in retirement, and the potential need for more support from the government.

Prof Yeung said: “Older people rely a lot on their children to support them. And now a large proportion of people don’t even get married or have children. So that means they are going to need to accumulate enough on their own, or the government will have to increase their support to the elderly population.”

The report looked at six broad areas, including sustainable economic growth and building a cohesive society.

There are plans to publish the report every two years.

Inflation! Inflation?

MAS also expects inflation to reach 4% by year end before it might taper down to 2-3% next year. With 3.7% inflation rate right now, it is the peak since 2009 and the last recent peak was a few months ago when it hit 3.2%.  This sounds worrying if seen out of context. In 2008, fueled by rising housing prices and where housing was a 21% chunk of the Consumer Price Index, the inflation rate was then a 25-years  savings-eroding high of 6.6%. Anyway, you can get a rough idea of where Singapore is at the moment in terms of inflation rate over the years.

Singapore annual inflation at 20-month high in Sept

SINGAPORE, Oct 25 (Reuters) – Singapore’s annual inflation rate accelerated to a 20-month high of 3.7 per cent in September, the government said, but analysts noted the central bank has already moved to cap rising prices.

The city-state’s consumer price index was up a seasonally-adjusted 0.2 per cent from August, the Department of Statistics said.

CONTEXT:

- The annual inflation rate in September is the highest since January 2009.

- The central bank, while tightening monetary policy earlier this month, said it saw the headline CPI rising to around 4.0 per cent by the end of the year and staying high in the first half of 2011 before moderating.

- The central bank said it saw the headline CPI rising to around 4.0 per cent by the end of the year and stay high in the first half of 2011 before moderating.

- The monetary authority widened the trading band for the Singapore dollar for the first time since just after the September 2001 attacks on the United States, underlining the depth of its concern about volatility in international markets.

- The Singapore dollar has risen about 8.2 per cent against the U.S. dollar since the beginning of the year.

- Singapore’s economy contracted 19.8 per cent on a seasonally adjusted annualised basis in the third quarter but the government expects full-year economic growth at 13-15 per cent.

Here are some comments from analysts:

PENN NEE CHOW, ECONOMIST, UOB

“On a monthly basis, transport costs seem to have moderated, resulting in the marginal month/month increase in the CPI. We don’t see large increases in the CPI in the coming few months with transport and accommodation costs easing. Food prices might still see a rise incrementally, on higher commodity prices.

“But generally, it looks like September’s data seems to reinforce the view that inflationary pressures will not be that big a concern. We are keeping our view of the CPI inflation at 3 percent for 2010.

SONG SENG WUN, ECONOMIST AT CIMB RESEARCH

“The sequential number of 0.2 percent is within our expectation although the year-on-year number of 3.7 percent is slightly ahead of our expectation. But the overall direction is still within what the Monetary Authority of Singapore and what we are looking at.

“What the government will look at is if high inflation, whether due to food or non-food items, is going to translate to high expectations of wages.

“If there are signs that inflation may become more entrenched then they might have to move (the monetary policy) again in April.”

WAI HO LEONG, ECONOMIST AT BARCLAYS CAPITAL

“The rise (in CPI) is due mainly to administered price changes, like higher COE (car licence) prices and higher electricity tariffs in the last few months. We were actually expecting a higher (year-on-year) figure because COE prices went up by so much and hotel rates were also higher during Formula One.

“I don’t think this is further cause for concern as the government has already done something about it recently. The pace of appreciation of the Singapore dollar was tweaked up.

“But a possible issue could be that wage pressures have been rising, particularly in the last quarter and this could put some pressure on core inflation figures.”

The Flood of Nonsense Excuses

This is getting more and more absurd. Perhaps retailers like Wendy’s can take a class action suit against PUB for compensation from the damages caused by the floods. Freak floods happen but 3 times in 2 months is a bit too much, particularly if Orchard Road is affected. If the floods cannot be kept out of a main tourist attraction in Singapore despite remedies in place since the first flooding in June, it wraps up PUB’s ability to deal with flooding in Singapore. There has been a perfect track record of no serious flooding since the 1980s, but maybe the system was not stressed enough. Or maybe the system was robust then but the current drainage is inadequate for whatever reason e.g. it is more urbanised and more surface flow into the drains when more water seeped underground before? The latest excuse this time is that the recent typhoon Conson in Asia caused abnormally intense rains which rolled into Singapore. This is Asia, and typhoons happen all the time and PUB should come up with a better excuse.

Flash floods stain Singapore’s urban paradise reputation
Posted July 18, 2010 21:25:00
ABC.net

Singaporeans were salvaging cars, soaked belongings and damaged goods on Sunday after a third flash flood in two months submerged low-lying areas of the city-state.

Shops and houses along posh Orchard Road were again hit by floods on Saturday after heavy rain overwhelmed the drainage system of the wealthy metropolis, which is often lauded for its excellent urban management.

The flooding took place just before parliament was to debate the issue on Monday following public clamour for explanations for earlier floods, which are normally associated with neighbouring capitals like Manila and Jakarta.

Residents in affected houses hauled out sodden furniture and opened windows and doors on Sunday after muddy water from overflowing canals receded.

“We never had floods like that,” said Peter Wong, 49, a long-time resident in a row of houses in eastern Singapore invaded by calf-high floodwaters on Saturday.

“Everything was gone, the carpets as you can see are damaged, the bottom of all the sofa seats are still soaking wet now, after 24 hours. We had to replace a new fridge, the fridge is totally damaged,” Mr Wong said.

“I’m trying to keep a cool head over this but it is frustrating. My life is disrupted,” added the hotelier, who failed to take out insurance against “acts of God” like floods.

The Straits Times said some restaurants lost live fish stored in tanks.

A major highway was also closed for two and a half hours, while motorists and commuters had to be rescued from stranded vehicles, but there were no reports of major injuries.

Saturday’s flash floods were the third since June 16.

Flash floods were a rare occurrence in Singapore until recently, with a climate expert interviewed by the Straits Times attributing the problem to regional weather phenomena such as Typhoon Conson and Indonesian squalls.

Critics had blasted the Public Utilities Board for not being prepared to handle the first two floods, while the department defending itself by saying abnormal weather conditions and clogged drains were to blame.

The flooding issue has become so serious that the Singapore parliament is scheduled to address the problem when it convenes on Monday amid forecasts of more rain.