Tag: recession

  • Chee Soon Juan: Singapore Is Ailing, PAP Serving Her Poison

    Chee Soon Juan: Singapore Is Ailing, PAP Serving Her Poison

    Dr Chee Soon Juan, the Secretary-General of the Singapore Democratic Party (SDP), wrote an article on the condition of the country stating that Singapore economy is living on borrowed time and innovation is the only antidote.

    “It is what we desperately need for economic regeneration. Welcoming the unknown, taking risks, making mistakes, embracing failure, encouraging derring-do – isn’t this what being innovative is all about?” he said.

    Pointing that countries around the world are changing so drastically politically while Singapore continues to follow its old ways, being “disastrously out-of-sync with rapidly changing times.”. Cocooned in its comfort zone, unaware that Singapore is sinking deeper into dysfunction and mediocrity and passed by societies ready and willing to change.

    This is what he wrote in full :

    THE WORLD is in upheaval. South Koreans throng the streets demanding the removal of their president; Malaysians clash as they profess their love or loathing (depending on whether you don red or yellow apparel) for their prime minister; pro- and anti-Beijing Hong Kongers do battle over whether two young lawmakers should be disqualified from parliament; Pinoys and Pinays elected a Pope-cussing-Obama-hating-gun-happy politician as their national leader; the Brits up-ended order of every conceivable kind when they voted to leave the European Union; and now, half of Americans elected as their president someone whom the other half cannot find enough expletives to hurl at.

    All this is enough to make Singaporeans want to quicken the search for another habitable planet to fly to.

    Cue PM Lee: “In Singapore, we watch all this with concern and we have to ask ourselves how we can prevent ourselves from going in that direction. For 50 years we’ve been very lucky. We are still united, still proud of the country, still moving forward…So be aware that the risks are there, and you have seen what can go wrong in other countries.”

    Translation: Singaporeans are lucky to have the PAP. So shun disruption, stick with the familiar. We may not be able to change the government but that is a good thing because citizens cannot be trusted to make the right decisions – just look at the other countries. The PAP will decide for us and protect us from the world’s madness.

    This is what Singaporeans hear and have been hearing for half-a-century. The thinking has been baked into our national DNA.

    It is also one that will ensure our country’s demise. It is this fear of the unfamiliar, fear of getting things wrong, fear of taking chances that will be Singapore’s undoing. For nothing in such an outlook fosters an innovative culture.

    Welcoming the unknown, taking risks, making mistakes, embracing failure, encouraging derring-do – isn’t this what being innovative is all about?

    The truth is that our economy is living on borrowed time. The dependence on multinationals to transfer skills and know-how, a hard-working and cheap labour force ready to work even harder and cheaper, and a bewildering bevy of government companies controlled by the Prime Minister’s wife is a model that may have worked in the past but is disastrously out-of-sync with rapidly changing times.

    As it is, our economy, teetering on the brink of a recession, has been ailing for the last couple of years – this taking place despite the absence of a major world crisis. The danger is that it may signal the beginning of something protracted.

    Innovation is the anti-dote. It is what we desperately need for economic regeneration. For this, change – including political change, especially political change – is necessary.

    I can do no better than quote Steve Wozniak, Apple’s co-founder, who pointed out that a company like Apple could not have emerged from a place like Singapore: “Look at structured societies like Singapore, where are the creative people?…All the creative elements seem to disappear.”

    It is a tragedy that Singaporeans are unable to see that Americans, Hong Kongers, or Britons are unafraid to take political chances, stand up to injustice – perceived or otherwise, and be their nation’s boss. So what if Brexit fails or China cracks down on Hong Kong or Donald Trump’s tenure turns out to be a disaster? They’ll learn, course-correct and improve their political systems in the long run.

    What about us? We continue to be afraid of change because the PAP breeds and feeds the fear of change. We are cocooned in our comfort zone, unaware that we are sinking deeper into dysfunction and mediocrity and passed by societies ready and willing to change.

    It has become a cliche, but still no less true, that this island on which we inhabit has precious little natural resources; nothing to mine for, drill at or grow on. This is why it is so troubling that those in power are strangulating the very thing that will ensure our survival and progress – the minds of our people.

    What fertiliser does for crops, political freedom does for innovation. The messiness and seeming chaos that accompanies democracy must not be seen as societal threats to be bleached from our system. In our desire for peace and security, let us not inadvertently celebrate the peace of the cemetery and the security of the serf.

    Political disruption (unfortunately, to many Singaporeans, this includes the simple act of electing a few more opposition MPs) is needed to energise the human spirit and provide that impetus for positive change.

    May wisdom and courage prevail.

     

    Source: www.theonlinecitizen.com

  • How Do You Take A Major Pay Cut In Singapore?

    How Do You Take A Major Pay Cut In Singapore?

    By SingSaver.com.sg

    If your salary takes a hit in 2016, follow these steps to survive a drastic pay cut in Singapore.

    First published on 30 March 2016. Updated on 10 November 2016.

    Everyone wants to get a raise, and there are some indicators that pay raises will happen in 2016. But with layoffs on the rise, some experienced and highly trained Singaporeans might experience the opposite, and end up with lower-paying jobs.

    Given the poor economic situation in Singapore, even those who don’t lose their jobs may face pay cuts. If your salary takes a hit, here’s how you can survive the rest of 2016 with as little sacrifice as possible.

    1. Manage Your Loans Quickly

    Debt management will get harder, so address it fast.

    In an ideal situation, your debt ratio should not exceed 50% – this means the total repayments you make on loans, every month, should not go beyond 50% of your monthly income.If your debt ratio exceeds 50%, you should consider the following:

    • Talk to your bank to restructure the loan. Do this before any late payment notices, legal warnings, etc. appear in the mail
    • Talk to a credit counsellor, who can help mediate between you and your creditors, and create a repayment plan
    • If you still have money or savings, try to pay down loans until the debt ratio is 50% or under. However, do not wipe out your savings doing this; you will still need money for emergencies
    • Switch your high interest loans to low interest loans. For example, use a low interest personal loan (6% – 8% per annum) to pay off high interest credit card loans (24% per annum).

    2. Review Your Long-Term Financial Plans and Insurance

    Your previous long-term plans, such as your retirement fund, will have to be changed to suit your current situation. You will have less to invest, and you may even need to liquidate (sell) some assets to pay off loans you can no longer service.

    It’s best to speak to your financial advisor or a wealth manager about reviewing your portfolio. Even if you need the money right now, don’t sell stocks, bonds, etc. without a proper consultation. You may damage your wealth by selling the wrong asset at the wrong time.

    With regard to insurance policies, inform your financial advisor that you may have difficulties meeting premiums. Don’t just allow your policy to lapse. Not only will this leave you uninsured, it could lead to the unnecessary loss of payouts. You are in not in a position to afford either of those.

    3. Upgrade and Keep Seeking Greener Pastures

    Do not stop looking for another job that pays as well as your previous occupation. Remember, downturns in the job market don’t last forever.

    One of the worst things you can do is give up, and sink into a lower paying job for the next few decades of your life. Keep on the lookout. Write a job hunting plan (e.g. at least one interview a week, at least an hour a day sending resumes) and stick to it.

    Take advantage of government aid, such as the SkillsFuture programme, to upgrade yourself. Ask a recruiter or your immediate superior which skills are most needed in your industry. This opens up the possibility of promotions, while helping to make you less dispensable.

    4. Make a Progressive Budget

    Identify your three main, controllable costs (e.g. transport, food, children’s tuition). Start by trying to reduce the amount spent, in each category, by just 5%. The next month, reduce it by 10%, and so on.

    Few people can reduce a specific category by more than 30%, but try your best anyway. After about four to six months, you will find you are spending far less than you used to.If you try to create a stringent budget and try to follow it from the outset, chances are you will fail. It takes time to adapt to a different lifestyle. Using this approach will also be gentler on your family, if you are the sole breadwinner.

    5. Reduce Your Access to Credit for the First Three Months

    If you have credit cards or lines of credit, call the bank and have your credit ceiling lowered to match your new income. Do not permit yourself to have a credit ceiling of two to four times your previous income – this has the potential to mire you in debt if you lose control.

    It is also a good idea to close down some credit lines. Again, it takes time to adapt to a new, more deprived lifestyle. It is common for people who have taken drastic pay cuts to overspend in the first three months. Don’t allow yourself to start taking expensive loans, in order to maintain your lifestyle.

    You can work your way back to your previous income level, but the way will be harder if you get enmeshed in debt.

    6. Learn to Use Thrift, Wholesale, and Discount Sites

    Auction sites are a lifesaver when you are on a budget, in terms of buying things for less or making money. Learn to use eBay or Carousell to make extra money off things at home instead of discarding them. You can also get better deals from wholesalers in Taoabo or Aliexpress, compared to retailers.

    If you are shopping for groceries, check out online grocers to compare prices. Maximise savings at your favourite supermarket by using membership cards or cashback cards optimised for groceries.

    7. Work to Stretch Your Income

    Just scrimping and saving should not be your only method. Try to find alternative sources of income. If you had specialised qualifications before, you can try to put yourself in the market as a consultant – businesses may not be hiring, but they might be happy to give you a contract for one-time projects.

    Remember that you don’t always need special skills to stretch your income. Sometimes it’s the simple things – like helping someone update their database – that sees all the demand.

     

    Source: www.theonlinecitizen.com

  • Sounding The Alarm: The PAP Needs To Face Up To Economic Reality

    Sounding The Alarm: The PAP Needs To Face Up To Economic Reality

    In his Lunar New Year message this year, Prime Minister Lee Hsien Loong referred to the global economic distress, saying: “The Government is watching the situation closely. We do not expect a severe downturn, like the Global Financial Crisis in 2008.”

    Finance Minister Mr Heng Swee Keat, likewise, played down the looming crisis, going so far as to say that Singapore’s externally oriented industries will experience a “subdued performance” and, even then, only for the short term, reflecting “modest growth” in the global economy.

    A cursory review of the analyses coming out from the global business sector paints a picture quite different. Granted some of these reports are speculative and alarmist but there is a considerable amount of data pointing to a more severe, even alarming, picture.

    China’s weakening economy, slumping oil prices, collapse of the commodities market, and signs of an economic slowdown in the United States are all contributing to an ominous outlook ahead.

    The Baltic Dry Index, which measures the transportation cost of raw materials, has dropped to a record low and falling – the lower the index, the slower the global trade. In fact, demand has been so bad that ships are being scrapped faster than they’re built.

    William White, the Swiss-based chairman of the OECD’s review committee and former chief economist of the Bank for International Settlements (BIS) warns that the current situation is worsethan what it was in 2007.

    White, who had warned about the 2008 crisis before it happened, blames the situation on high debt levels. The debts, incurred through easy credit since the last crisis, have “reached such levels in every part of the world that they have become a potent cause for mischief.”

    Much of this debt has been incurred by the corporate sector in Asia with Singapore leading the charge. As a percentage of GDP, Singapore has the highest private debt among emerging markets.

    This has led analysts to wonder out loud whether these corporate debts are serviceable in light of the economic downturn. Law firms in Singapore are even warning that rising bond defaults are looking ominously like those in the crises of 2008 and 1998. Bad loans in the country reached a six-year high in 2015 with our economy facing “escalating risk on multiple fronts”.

    All this has an negative knock-on effect for the rest of the economy. Our non-oil domestic exports fell nearly 10 percent in January this year – its third consecutive month of contraction. The oil-industry is doing even worse with petrochemical exports plunging 18.3 percent.

    This has resulted in lay-offs; announcements of retrenchments from banks, IT firms, oil-companies, news portals, etc have become the staple in our daily news.

    The downturn has inevitably caused much pain in the property sector. Dozens of real estate agencies have gone bust with thousands of property agents leaving the industry. A glut of undersold condominium projects with many more coming on in the pipeline have depressed housing prices.

    Homeowners are also feeling the brunt of the crisis. Nearly 80 percent more financially distressed homeowners in Singapore are putting up their properties for auction. (This development is not surprising given that Singapore has one of the highest level of household borrowing relative to GDP in Asia.)

    Bad as the housing market is, business is even worse for commercial properties. There is already excess capacity in prime office space with millions more square feet of new supply coming into the market this year. Rental, having fallen 15 percent in 2015, is expected to nosedive by a further 10 to 20 percent in 2016.

    Clearly, with the way things are going, the economy is not, according to Finance Minister Heng, just “subdued”. It is time the government faces up to the increasingly dire situation here and, to the extent that its actions do not continue to dig a deeper economic hole, start taking steps to put things right.

     

    Source:www.cheesoonjuan.com