The Herd has followed the west. SGX and many indexes worldwide are taking the plunge. In Singapore, companies like Keppel that has reported a strong financial statement for this quarter only a couple of days ago are also taking the hit despite seemingly strong fundamentals. Is it wise to sell off fundamentally strong shares amid this global credit risk uncertainty? My take is No. Although difficult to quantify, I am optimistic on the outlook of the world economy with a growing Asia that it is strong enough to withstand such an episode from the US. Of course, all these are just speculation. Further research has to be done. Rely on facts, data, but not on human behavior.
The Singapore economy has indeed been doing well. Growth has been good and the economy forecast has even been raised. Call for celebration? Nope. Never. The Monetary Authority of Singapore is renown for being conservative. They never over-promise. In a way, it is a strategic move. Politically. I have seldom, if ever, heard of the economy forecast being revised downwards apart from the tumultuous 1997 Asian crisis and 2001 Sars period. Private sector economists predications of the economy growth is now closer to the revised rate as reported in the Straits Times. So what does this show? Either MAS is not as competent as the private sector or they are politically driven, which I believe is a bit of both.
This creates the impression that the Singapore economy is doing well thanks to the government. But is it so? In a way, maybe yes. The tax cuts are indeed a factor in pulling in all the investments, although at a cost of citizens paying more for their part. Just look. The GST will be raised again. Aging population, more infrastructure, tax competitiveness, compensate 'competent and extraordinary' ministers, buffering up the already humongous country reserve/treasury....where's the money got to come from?
While the government tries to put too much credit into their portfolio, lets look at the macro picture. Economies worldwide are performing. The growth of China and India are key components to propel growth elsewhere. Not surprisingly, Singapore economy is boosted too. When times are good, the government claims credit. When times are bad, they try to implement some policies (CPF cuts), and advised the citizens that the government have no choice and it is beyond their control, but will definitely 'assist' the citizens to go through the tough period. So much for propaganda and 'extraordinary ministers that deserve a big pay package'. And when the economy recovers, as every economy does, they claim that it's due to their policies that has helped savage the Singapore economy from doing further south.
An interesting excerpt from the Prime Minister's speech as published in the Straits Times yesterday (national day),"The Government cannot solve all these problems alone. Everyone must play a part. We each must take responsibility for ourselves, make the effort to do well and provide for our families and our old age. At the same time, the more successful Singaporeans must pitch in to help the weaker ones. The more you have gained from society, the greater obligation to give back something to your fellow citizens. Let your giving come from the heart." The problem in this statement refers to widening income gap. Oh, so our dear million-dollar scholastic extraordinary super human ministers cannot solve all the problems. And they expect the citizens to take ownership instead.
It's a sinister plan. Really. Tai-qi-ing all the responsibilities back to the people. Then what does the government does? A best paid government in the world that do not have to bother about social welfare and aging population? How nice. Who has benefited the most from the Singapore society? Who else? The scholars. People who are paid to study at renown universities and sponsored with millions of dollars from the tax payer's' coffer every year. And when they are back, they are paid millions again on their elitist career in the government. So how are they giving back to the society? "We serve the society in the cabinet and help make Singapore a better place to live in!" shouts one. "We discard our million dollar career opportunity in the private sector to work for a basket of peanuts and under scrutiny." shouts another. 'Obligation' to give back 'from the heart' huh? It's laughable. If the pay package can be slashed by half, and even then the ministers are still among the world's best paid, and use that money for the poor, would that not have been better? That would narrow the Gini coefficient greatly. $290 a month for the poor and old? A million dollar is enough to assist 3440 over such people base on this miserable sum of $290 a month. Income distribution, distribute from the top to the bottom. Not middle to bottom and total back to the top. Hypocrisy.
The Singapore economy has indeed been doing well. Growth has been good and the economy forecast has even been raised. Call for celebration? Nope. Never. The Monetary Authority of Singapore is renown for being conservative. They never over-promise. In a way, it is a strategic move. Politically. I have seldom, if ever, heard of the economy forecast being revised downwards apart from the tumultuous 1997 Asian crisis and 2001 Sars period. Private sector economists predications of the economy growth is now closer to the revised rate as reported in the Straits Times. So what does this show? Either MAS is not as competent as the private sector or they are politically driven, which I believe is a bit of both.
This creates the impression that the Singapore economy is doing well thanks to the government. But is it so? In a way, maybe yes. The tax cuts are indeed a factor in pulling in all the investments, although at a cost of citizens paying more for their part. Just look. The GST will be raised again. Aging population, more infrastructure, tax competitiveness, compensate 'competent and extraordinary' ministers, buffering up the already humongous country reserve/treasury....where's the money got to come from?
While the government tries to put too much credit into their portfolio, lets look at the macro picture. Economies worldwide are performing. The growth of China and India are key components to propel growth elsewhere. Not surprisingly, Singapore economy is boosted too. When times are good, the government claims credit. When times are bad, they try to implement some policies (CPF cuts), and advised the citizens that the government have no choice and it is beyond their control, but will definitely 'assist' the citizens to go through the tough period. So much for propaganda and 'extraordinary ministers that deserve a big pay package'. And when the economy recovers, as every economy does, they claim that it's due to their policies that has helped savage the Singapore economy from doing further south.
An interesting excerpt from the Prime Minister's speech as published in the Straits Times yesterday (national day),"The Government cannot solve all these problems alone. Everyone must play a part. We each must take responsibility for ourselves, make the effort to do well and provide for our families and our old age. At the same time, the more successful Singaporeans must pitch in to help the weaker ones. The more you have gained from society, the greater obligation to give back something to your fellow citizens. Let your giving come from the heart." The problem in this statement refers to widening income gap. Oh, so our dear million-dollar scholastic extraordinary super human ministers cannot solve all the problems. And they expect the citizens to take ownership instead.
It's a sinister plan. Really. Tai-qi-ing all the responsibilities back to the people. Then what does the government does? A best paid government in the world that do not have to bother about social welfare and aging population? How nice. Who has benefited the most from the Singapore society? Who else? The scholars. People who are paid to study at renown universities and sponsored with millions of dollars from the tax payer's' coffer every year. And when they are back, they are paid millions again on their elitist career in the government. So how are they giving back to the society? "We serve the society in the cabinet and help make Singapore a better place to live in!" shouts one. "We discard our million dollar career opportunity in the private sector to work for a basket of peanuts and under scrutiny." shouts another. 'Obligation' to give back 'from the heart' huh? It's laughable. If the pay package can be slashed by half, and even then the ministers are still among the world's best paid, and use that money for the poor, would that not have been better? That would narrow the Gini coefficient greatly. $290 a month for the poor and old? A million dollar is enough to assist 3440 over such people base on this miserable sum of $290 a month. Income distribution, distribute from the top to the bottom. Not middle to bottom and total back to the top. Hypocrisy.
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