Category: Singapuraku

  • Playing Robin Hood With CPF?

    Playing Robin Hood With CPF?

    Sparring partner and friend Cynical Investor wondered why the more you leave in CPF for your retirement, the less you get proportionately from CPF LIFE payouts from age 65. https://atans1.wordpress.com/2016/0…. Here is what CPF shows us:

    As seen, the FRS is double the BRS but the pay-out is less than double. The ERS is triple the BRS but the payout is less than triple the BRS payout. As a Facebook comment said “I asked the same question. No one knows the answer”. The answer is in the complicated way of allocating interests.

    At age 55, the monies are all moved to Retirement Account earning an interest rate of 4%. The first $60,000 of your account earns an extra 1%. From this year onwards, there is another extra 1% on the first $30,000. The average interest rates earned on the sums over 10 years are as roughly follows

    BRS 4.9%, FRS 4.5%, ERS 4.3%

    Hence the bigger the sum the lower the interest rate earned. The determinant of CPF LIFE payout is the balance at age 65, not at 55. One may start with 2x or 3x BRS but the balance after 10 years is not 2x nor 3x respectively because of those extra 1% interest add-ons. In addition, at age 55, the government credits the Retirement Account with the LIFE Bonus, a flat sum which does not increase if one has more than the BRS. Hence CPF LIFE payouts do not rise proportionately. Why so?

    The answer: like the tax-funded state pension and social entitlement systems of the West but to a much lesser extent, the government is using CPF to do a bit of redistribution, i.e. allocating more to the lower income from the higher income and to the old from the young.

    The amount of interest CPF receives from the Government is roughly 4.1% (calculated from CPF’s Annual Report). Therefore, someone must lose out when those aged above 55 are earning 4.9% (BRS), 4.5% (FRS) or 4.3% (ERS) and furthermore those aged below 55 with combined balances below $60,000 are also earning aggregate interest rates higher than 4.1%.

    This works because those who are below 55 earning lower returns are subsidizing those who are above 55 earning higher returns. Those who have higher combined balances, presumably richer are subsidizing those who have lower combined balances, presumably poorer with the former earning lower returns than the latter. Moreover, LIFE Bonus is paid out of the government budget expenditures which are funded by tax revenues. The high income pays higher taxes but receives the same or slightly lower LIFE Bonus.

    The government is therefore taking from the richer and the younger and giving to the poorer and the older. That is like playing Robin Hood with our CPF monies and taxes just like the European welfare system, albeit just a tiny bit. But is it?

    Not really.

    Redistribution should be based on income not CPF balances. A member with higher CPF balance is not necessarily richer than one with a lower balance because the former may prefer a less costly home and a safer retirement. The latter may max out his CPF to overreach for a bigger home or indulge in property investments. Think of it as a system that is primed for the public and private real estate market and therefore primed to generate financial reserves for the government who ironically is still rather tight-fisted in redistributing the returns from the reserves back to citizens.

    Taken as a whole, CPF is not at all redistributive. It is highly regressive because CPF contribution caps deliver disproportionately higher investable income to the rich. In an era of escalating property prices and low wages, having higher investable income to plow into property and businesses means outsized returns earned compared with those who have to make do mostly with lower returns from CPF. Dividends from financial investments are also mostly untaxed so think of the outcome delivered by CPF as welfare for the rich.

    Source: Chris Kuan

  • Why Low-Income Families Make ‘Poor Choices’

    Why Low-Income Families Make ‘Poor Choices’

    For three years, I have been researching the lives of low-income people. I visit families in Housing Board rental flats once or twice a week and talk to them about their routines, worries and aspirations.

    My research has taught me important things. First, everyone makes bad and good choices, but the conditions and outcomes of those choices are not equally bad or good for everyone. Second, parents in low-income situations are deeply invested in their children’s well-being.

    Everyone makes bad decisions sometimes. Most people also make some good decisions. People with low incomes have made both. But they do not always have access to good options. For example, many “choose” to leave school early because no one can support them. This seems obviously a bad “choice”, but may be the best among various poor options.

    “Choices” have long-term effects. People with extra money and social capital can mitigate the consequences of “bad” choices, but people without those buffers face severe consequences over time.

    One woman I met had moved here from another country after marrying a Singaporean man. She had not immediately applied for her daughter to be a Singapore citizen, perhaps partly out of uncertainty about where they should live for the long term. Soon after, she was widowed, and several attempts to secure citizenship failed. Her daughter Jen (not her real name) has been living in Singapore for most of her life and knows no other home. Jen’s mother encouraged her in her studies and she has just completed her A levels. Their limited income and Jen’s lack of citizenship, however, means that she has accumulated arrears in school fees. Unless she pays, her certificate will not be released, barring her from university. The few thousand dollars owed seem insurmountable and the “bad choice” of not applying for citizenship immediately means the vast difference between upward mobility and stasis.

    My second point is about parents’ investment in their children’s well-being, in a society where “investments” that do not involve money are valued less than investments that do.

    The women and men I spoke to for my research talked endlessly about their children – their likes and dislikes, quirky habits and talents – as well as the trials of parenting. These parents are deeply invested in their children’s physical, emotional and social well-being. Contrary to stereotypes, low-income parents care for their children in ways no less profound than better-off parents. They include parents who have been drug addicts, incarcerated, or divorced.

    Their devotion to their children is more difficult and requires more of them than my devotion to mine. Many have long, inflexible work hours in physically taxing jobs. They have multiple dependants, heavy burdens of housework, and additional labour due to being low-income (for example, going to the post office weekly to top up their utilities credit). Parents face great financial stress, worrying about food, clothes and shelter. While the better-off in Singapore complain about children having excess tuition and enrichment classes, low-income parents lack resources to provide those things, which are not only necessities for succeeding in the school system, but also keep children occupied. Most poignantly, low-income parents need their children to listen to them at the same time that they tell them “don’t be like me”.

    As we gain awareness about inequality and poverty, how we look at problems has a real impact on the solutions we craft.

    There is a tendency to paint low-income parents as more likely to be neglectful or abusive. This happens for several reasons. First, accounts of the low-income too often focus only on cases that have surfaced as “problematic”, which are then over-generalised as representative. Second, comparable actions are judged differently across class: A child may be left alone at home after school, or left with a grandparent or domestic worker. In both the low-income and better-off cases, the situation arises because parents need to work, but the former is quickly judged as neglect while the latter is acknowledged as necessity.

    Certainly, there are parents who are neglectful or abusive, but this is no less true among higher-income ones. Caricatures of low-income parents cannot be the starting point for public discussions of poverty and social inclusion.

    A recent article (“Lifting families out of poverty: Focus on the children“; last Thursday) admonishes society to pay attention to children in poor households while implying that they are innocent of the “poor choices” their parents make. This narrative that “children are innocent” and therefore particularly worthy of assistance is powerful.

    Yet, it does not accurately reflect the general realities of low-income families’ lives. Most of those parents are doing the best they can – at work and at home – under difficult circumstances. It is not “bad choices” per se that are the problem. They have limited options and face especially negative consequences when they make missteps.

    We cannot detach the well-being of children from that of adults. We would find this approach unfathomable for middle- to high-income families – there is no good reason to imagine that low-income families are different.

    Better-off Singaporeans should care about low-income people because they are a part of our society. I am not from a poor background, but I meet people like my respondents every day – when I pay for my groceries, get petrol, or use any public facility that requires cleaning. Like me, they are people with hopes, joys, needs and disappointments. They work hard and make mistakes, as I do. They deserve respect and dignity, no less than I. The deep social gulf between us negates our shared well-being. I want my child to grow up in a society where she has the same opportunities as their children, not more – a society that truly values hard work, equality and justice.

    • The writer, Teo You Yenn, is an associate professor in sociology at Nanyang Technological University.

     

    Source: www.straitstimes.com

  • Accident Victim Left Behind Wife And Two Young Children – Wife Appeals For Witnesses To Assist TP Investigations

    Accident Victim Left Behind Wife And Two Young Children – Wife Appeals For Witnesses To Assist TP Investigations

    I’m the spouse of the victim involved in the accident on 3rd March 2016 @7.10am along Hougang Ave 8/2.

    My husband left behind with 2 kids age 7yo and 18months. I would really appreciate if someone who was driving on that morning witness the whole incident. Please come forward and explain the whole accident to the Traffic Police.

    If your car are equipped with the recorder, please help to submit the video clip to the TP.

    Your kind gesture would really be a great impact on my family and children. Thank you very much

    Caroline Chua

    STOMP also reported on the accident

    Update:
    Police have arrested a 50-year-old male driver for causing death by negligent act, after a 33-year-old motorcyclist died in a collision at a traffic junction between Hougang Avenue 8 and Avenue 2 at 7.10am today (Mar 3).

    The police spokesperson said:
    “The 50-year-old male driver was subsequently arrested for causing death by negligent act.

    “The 15-year-old who was conveyed to hospital was a passenger in the driver’s car.”

    Original article:
    A 33-year-old biker died from his injuries after his motorcycle and a car were involved in a bloody accident at a traffic junction between Hougang Avenue 8 and Avenue 2 at 7.10am today (Mar 3).

    Stomper Ferrand was on bus service number 854 at about 9.15am when he saw the bloody accident scene, and the photos show a completely wrecked motorbike lying on the road, with a trail of blood near it.

    A police spokesperson said that the rider had succumbed to his injuries in hospital.

    Here is the police statement in full:

    “Police received a call on 3rd March 2016 at about 7.10am, informing us of an accident at the junction of Hougang Avenue 2 and Avenue 8.

    “Upon arrival, it was established that an accident involving a car and a motorcycle had occurred at the said location.

    “Two persons, aged 15 and 33, were conveyed to Tan Tock Seng Hospital, where the 33-year-old motorcyclist subsequently succumbed to his injuries.

    “Police investigations are ongoing.”

    The photos the Stomper sent shows debris from the wrecked motorcycle spread all over the road while two traffic police officers talk to man near a badly mangled silver car nearby.

    “Crime scene investigation officers were also at the scene, and the accident caused a jam that stretched from the scene to Hougang Avenue 9 and Yio Chu Kang Road,” said Ferrand.

     

    Sources: Caroline Chua, STOMP

  • Sovereignty And Loyalty In Malay Governance

    Sovereignty And Loyalty In Malay Governance

    As previously discussed, the Malay concept of citizenship/ subject is based on participation within a society and allegiance to a ruler. The concept of land and country is secondary (and almost alien for the latter).

    When someone migrates to the Alam Melayu, whether internally (such as from Sulawesi to Sumatra) or externally (GuangZhou to Singapura), their migration is understood as an application to be a part of the Malay society, acceptance of Malay customs and laws and allegiance to the Malay ruler.

    Sovereignty then, is not vested in the land or country, but with the Malay ruler. In Malay, sovereignty is understood through the concept of daulat.

    Daulat can be described as sovereignty with a supernaturally imbued character (Soenarno, 1960, p. 1).

    The recognition of the ruler’s daulat and the model of the Malay-ruler relationship is probably found in the sumpah (oath) between Sri Tri Buana and Demang Lebar Daun.

    Demang Lebar Daun, who became the father in law to Sri Tri Buana committed his service and those of his descendants to Sri Tri Buana and his successors. In return, he requested his ruler to treat them fairly and even if they were to commit grave error and receive the capital punishment, to not humiliate them:

    “Tuanku, segala anak cucu patek sedia akan jadi hambalah ke bawah Duli Yang Dipertuan; hendaklah ia diperbaiki oleh anak cucu tuanhamba. Syahadan jika ia berdosa sebesar-besar dosanya sekali pun, jangan ia difadhihatkan dan dinista dengan kata yang jahat jahat; jikalau besar dosanya dibunuh, itu pun jikalau patut pada hukum Syar’a”

    Sri Tri Buana accepted Demang lebar Daun’s request and in return asked for loyalty from Demang Lebar Daun’s descendants even when their King is oppressive and cruel:

    “hendaklah pada akhir zaman kelak anak cucu bapa jangan durhaka pada anak cucu hamba,jikalau ia zalim dan jahat pekertinya sekalipun”

    Both of them agreed to the conditions and made an oath that if either of them breaks the agreement, may Allah destroy their households.

    “Maka keduanya pun bersumpah-sumpahanlah, barang siapa mengubahkan perjanjiannya itu dibalik Allah subhanahu wa ta’ala bubungan rumahnya ke bawah kaki tiangnya ke atas. Itulah sebabnya maka dianugerahkan Allah subhanahu wata’ala kepada segala raja-raja Melayu: jikalau sebagaimana sekali pun besar dosanya, tiada diikatnya dan digantungnya dan difadhihatkannya dengan kata yang jahat. Jikalau ada seorang raja memberi ‘aib (seorang hamba Melayu) itu alamat negerinya akan dibinasakan Allah subhanahu wa ta’ala.”(Windsted, 1938)

    Relationship between ruler and subject

    The responsibility of the subject, who bears allegiance to his ruler, is to obey regardless whether it serves his interests, whether he agrees with his ruler’s decision or whether he find it oppressive. A subject cannot agree to act when it benefits him or reject his ruler when he disagrees.

    For the ruler, he commits to treat his subjects with grace and not to humiliate them.

    The only higher law that the Malays refer to, is the Hukum Syara’ or the Syariah.

    In discussing the relationship between the ruler and the people, Kratz notes:

    we find that the ruler, important as he may be, is nothing without a people, and that it is the people and their traditional leader(s) who choose their ruler, and who decide freely to whom they want to offer their total obedience…

    loyalty and respect are qualities which have to work in both directions, to and from the ruler, in order to affect positively the well-being of state and society. (1993, pp. 76-77)

    References:

    Kratz, E. U. (1993). Durhaka: The concept of treason in the Malay” Hikayat Hang Tuah”. South East Asia Research, 68-97.

    Soenarno, R. (1960). Malay Nationalism, 1896–1941. Journal of Southeast Asian History, 1(01), 1-28.

    Windsted, R. O. “The date, author and identity of the original draft of the Malay Annals.” Journal of the Malayan Branch Royal Asiatic Society 16.part 3 (1938): 27-34.

     

    Source: Almakhazin SG

  • Singaporean, Ahmad Taufiq, Raising Funds To Enter Prestigious Strongman Competition In Africa

    Singaporean, Ahmad Taufiq, Raising Funds To Enter Prestigious Strongman Competition In Africa

    The heaviest thing he has ever lifted was a 380kg axle.

    Yesterday, strongman Ahmad Taufiq Muhammad, 34, came close to breaking his personal record when he lifted a van with five crew members of ONE FM’s #1 Breakfast Show.

    He started out comfortably – lifting up the van each time one member got into the van.

    After the fourth lift, he had to kneel on the ground and catch his breath as the final member, DJ Glenn Ong, climbed into the van.

    With his muscles strained, Mr Taufiq clenched his teeth and lifted the van one last time to cheers from the crew.

    Estimating that he had lifted about 370kg, he said afterwards: “The weight increase was ridiculous.”

    The freelance youth workerhopes to raise money to take part in the Arnold Classic Africa, an annual global strength competition.

    He was invited to this year’s event, which will be held in Johannesburg, South Africa, on May 27.

    Mr Taufiq, who weighs 145kg and is 1.77m tall, told The New Paper: “One of my friends suggested crowdfunding since it’s costly to travel to South Africa. I’m targeting to raise US$3,500 (S$4,800), which covers my airfare and lodging.”

    From his own pocket, he will be spending about $5,000 more on a nutritionist, sports supplements, customised equipment and a protein-rich diet for 14 weeks.

    “I spend a lot on food, as I have eight to 10 meals a day,” said Mr Taufiq, who prepares his own meals.

    He took part in his first strength competition, Singapore Strongest Man, which was organised by HomeTeamNS, in 2005 and won.

    He then progressed to regional and international events such as the Orang Kuat Sabah (Strongman Sabah) and World Natural Strongman Federation 3rd Laszlo Classic 2012 in Hungary.

    HEART

    When asked about the weights he will be carrying in the Amateur Strongman category, he quoted a saying in the strongman circle: “A strongman never asks the weight of the implements. A strongman just picks it up and does his best.”

    And don’t think he’s all brawn. This muscleman has brains, and heart too.

    The psychology graduate from the University of Wyoming in the US is taking a break from pursuing his PhD in family ecology at Universiti Putra Malaysia to start a boys’ shelter and concentrate on the competition.

    He hopes people will fund him in his endeavour as he is the first Singaporean to take part.

    “It’s an experience. The Arnold’s is much bigger than the Olympics in the strength community. Strength sports don’t receive as much recognition as compared to swimming and table tennis in Singapore.

    “Everyone deserves a chance and people should have a little faith in me. I’ll put in a really good fight like I always do in competitions and aim to finish within the Top 10.” he said.

    DJ Andre Hoeden, co-host on the ONE FM’s #1 Breakfast Show, said: “I’m proud to see him taking on the strongman series to represent Singapore. I support him.”

    Mr Taufiq has raised US$1,515 so far. See www.makeachamp.com/taufiqstrongman for more information.

     

    Source: www.tnp.sg

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