Monday, September 16, 2013

Anti Competition? You want to pay more?

I read in forums of our newspaper with interest after our National Day Rally. During our rally, there was an announcement that there will be a launch of Medishield Life and all will be included including people with pre existing conditions. Much has been written on forums with some calling for government to standardise the price for a private integrated shield plan.. but I am dead against that.

Where will be the competition if that happens? How will we know companies are pricing their plan at the most affordable price for us? Wouldn't that be anti competitive? So if all companies is suppose to come up with a plan that is priced the same then if they were to collude and price it high so all makes a tidy margin, will that not be detrimental to you as a consumer? Banks have been brought to task for fixing Libor rates in London, and some banks here too.

Once again, the choice is yours to go find out who has the cheapest plan in the market. Why should the governent do it? If they are suppose to fix prices then why not fix prices for hawker food.. televisions.. property prices.. utilities (oops they are already doing that).. everything that concerns us more on a daily basis.

Price fixing only benefits the companies and not you as a consumer. There are anti competition laws for a reason.

This post dedicated to Chris Chan, great question!

Monday, September 9, 2013

Sad Day For The Diving Industry

It is tragic to learn about the loss  of 2 fellow divers in Tioman over the weekend. Its always sad to know that people have loss their lives especially if they loss their lives doing something you love. 

My heartfelt condolences to their family and loved ones. 

Tuesday, August 20, 2013

National Day Rally

Its good news for the elderly in Singapore after the rally last night! It seems by next year, those who have pre-existing conditions and the elderly will also be accepted under Medishield Life! Even those who do not believe in insurance and opted out of Medishield (Really? Why would you do that!?) will now be automatically included. 

Medishield have just undergone a revamp March this year and this means that will be another revamp soon. Premiums have almost doubled for somebody age 21 to 30 years old in March this year from 30 plus dollars to $66 per year this March. And by the time you have about $2,000 in your medisave, the interest you earn from it will more or less cover the premium for your medishield. But this is for now. With the increase of coverage to cover for pre-existing conditions and coverage for life there maybe another round of premium increase next year but we still do not have to worry too much because I am sure even when we are old, the maximum cap on our medisave with the current interest rate of 4%, it still covers the premiums for Medishield.

Cap for Medisave Contribution = $38,500

Interest per year for Medisave = $1,540

For individual who is 51-60 years old, premiums for Medishield = $345.

Interest will nicely pay for the premiums with change. 

But of course there are many limitations in Medishield, if you are looking at staying in wards higher than B2 or C wards. 

If you are Singaporean and do not mind staying in a B2 ward or C ward you get 100% subsidy. If you are Permanent Resident here. Your subsidy is 44% and 58% respectively. If you are a foreigner on Medishield you only get 20% and 35% subsidy. 

If you decided to go with a private hospital you will only be subsidised 35%. 

In todays Straits Times (19 Aug 2013) article with the title 'Universal, Compulsory and for Life.' One health economist said:

'MediShield Life plugs the gaps in MediShield by extending basic cover to all. This is enough for the bulk of the population, so he is in favour of moving away from integrated shield plans provided by private insurers.

The important thing, he said, is to ensure "everybody is perceived not to be denied or deprived relative to other people".

This is a very dangerous statement to make as it is very irresponsible. My worry is again, a reliance on the Government to do everything for Singaporeans. One particular report on therealsingapore.com today was a 30 plus year old man who has an 8cm gash on his arm and fainted while waiting for treatment in A&E at CGH. They waited seven hours yet no doc to see them. They ask for transfer but no ambulance for them to use. The article is written by one who once again is pleading with the government to do something...................

Do something for yourself! Get a private integrated shield plan with the rider. Most plans come with ambulance fee covered. If you got the private hospital plan, go straight to a private hospital and get it done in 15 mins. You have a choice! The government have done that for you and given you that choice. Take it. But if you chose not to do it then its your fault and nobody elses's.

And to the health economist, your statement have just planted the idea that the government will do all.... they don't. Once again, what you do today echoes in eternity.

And if you are a Permanent Resident reading this, all the more you should get a private integrated shield plan. Ask your financial adviser about it. If you do not have one email me tngjinyau@gmail.com

Wednesday, August 14, 2013

Impossible To Retire in Singapore

How many times have we heard the phrase mentioned by Singaporeans? 'Singapore is getting too expensive.' 'How to retire here?' 'Government must do something'. It always irks me that many people expect the Government should do something for them, anything goes wrong its the Government. MRT breakdown, Government fault. Bus driver strike Government fault. Toilet breakdown, Government fault. Lorry knock down people, Government fault. I cannot retire, Government fault. 

The way I see it, many things are within the control of ourselves. Whether we can retire in future is very much dependent on the things we do today. For example, if you know you need to have 1 million in future at retirement, what do you do today? You save. But Tang, things getting more expensive in future! You save more. But Tang things so expensive now how to save? Why you never save earlier? But the truth is its all about managing your money. Too many of us (including me in the past) saves after spending. Our saving formula looks like that:

Salary - Expenses = Savings

But every month we have an excuse to spend on something or we want to go on a trip or there is a newly launched gadget or new season fashion or new handbag, new shoes, new everything... so Tang how to save?

Lets move the formula:

Salary - Savings = Expenses

Wa Tang like that no need to spend already. Well maybe, but  I dare bet that if your formula changes to the above you will definitely be able to retire. If you were to spend on one less gadget or one less holiday or even one less beer per week, you will have found some extra money to save for the future. 

If you believe that the above formula can work you will probably ask how much to set aside each month. Rule of thumb 10% to 20% of your current income will be a good start. As your salary increases (and I hope it does, if it doesn't please take a good hard look at yourself) you increase the saving amount to maintain the 10% to 20% ratio. 

Have a good mix of asset to ensure the monies you have set aside is moving your monies closer to the inflation rate. Yes property is a good hedge but please it should not be the only hedge. It is still an asset and the value will fluctuate. 

If you are currently planning for your retirement already, get a financial adviser to project and estimate the amount of retirement fund you will need and work backwards to ascertain the amount to save today towards your goal. This will give you a more specific amount to set aside on a regular basis. Once again, if this actually concerns you and you do not have somebody to speak to, please email me tngjinyau@gmail.com. Whatsapp or SMS me 9180 3448. My consultation is on a no-obligation basis and I do not charge a fee.... yet...

Wednesday, July 24, 2013

1 in 10 Borrowers Overstretched...

In today's Straits Times MAS warns that 1 in 10 borrowers are overstretched. These borrowers has debts that exceed 60% of their monthly income and majority of these debts are property...

An increase of home loan interest rates may just push these debts beyond 100% of monthly income, forcing this people to sell their property, causing more demand and bringing property price down and that was why Singapore's banking sector's credit was downgraded recently, cos there may be a repeat of 2003 where a condominium bought in 1997 at $980,000 cost $450,000 in 2003. Read my earlier post here. Well, peoples' memories going to be jolted again... maybe. We shall see..

Friday, July 12, 2013

Kovan Double Murders.. 14J

Damn! When was the last time something so major happened in Singapore? The last murder that was so dramatic was probably the body of a foreigner found behind the mural of Orchard MRT that was even before ION was built. Even then that murder wasn't so drama.. just some cleaner opening the bag and finding human parts.. this Kovan murder got victims getting dragged in full view of the public! 

Are you wondering now who the killer is? When will he be caught? What's the motive? Yes I am intrigued too. But I also wonder what will be the financial impact to the family? Was the elderly man the sole bread winner? He is a business man and did he have a business succession plan? What will happen to his family now? What will happen to the business? Is the business he has build with his blood, sweat and tears going down the drain because he is no longer around? 

I am sure these questions will eventually arise when they find the killer, they know the motive. After all the dust settles and the grieving done, some if not all of these questions will arise. It is usually now when these questions are asked then answers are sought.. I can only hope that most of the questions can be answered easily.

Life is so fragile and unpredictable... have you planned already... 






Monday, July 1, 2013

The Types of Managers You Love To Hate

The corporate world.. a world full of bureaucracy, red tapes, politics and fake people with agendas. I left all that after 8 years because I realise you have to be fake and nice to get where you want to be. You have to be a politician to get noticed and recognised unless your managers is real and is there because their bosses are real and see the true work you do. The rest of the managers, well somehow they were fake and nice to somebody who was fake and nice and eventually got to where they were. And in the corporate world, real nice managers and employees finish last.. sad but true.

And I suppose this bureaucracy is more apparent in an Asian culture where hierarchy is so important. In the asian culture we have always been brought up to respect our elders, respect their decisions and getting promoted to the next level feels like I am one up over the rest. The traditional managers always think what they say counts.

Through my observation, I think I can single out some of these managers and if you have others that I did not cover, please put down in the comments below.

My list of managers you love to hate, though I may write as he it can jolly well apply to a 'she' as well:

1. The Dictator

Well whatever this managers say counts... even if it is wrong or unethical. This managers have been brought up and entrenched so deeply in the asian culture that he feels superior to the rest of the people who are not his peers. He is afraid of losing control thus he needs to know everything thus he becomes a micro-manager. Whatever you do is not good enough, because it cannot be because he feels that he is the best so how can your work be better than his? He is asking you about your progress of a certain project almost daily. He wants to know who you are working with, how you getting it done. And nothing you do seems to satisfy him. He gets his ego boost from knowing his ideas are better and that is why he is there.. not you.

2. The Michael Jackson Boss

In the Michael Jackson song Black or White, the lyrics go: It don't matter if its black or white. For this manager, his lyrics probably will sound more like: It don't matter, it has to be black and white. These managers love emails. Whatever you need help with you need to email. Boss I need an approval for the project, email me. Boss I going on leave, email me. Boss, client wants better price, email me. Boss, stomachache need to go toilet, email me....

Sure in some management training they say these managers are Visual people in the VAK model. Probably so... some of them are just covering their backside. They want everything in black and white so that their asses are covered, they send you an email they print it out so that if you ever go back and say I never see, they whip out a file with all their emails, put on one white glove and say 'thereeee...' all the date, time and content capture in black and white.. eeeeyooooww. Backside covered. The extreme ones will even set settings so that a return email will pop up when you supposedly read them or delete the email without reading. It is then also printed out and filed.

3. The Parent

This manager though very similar to being a dictator but can be very nice sometimes but the problem is they always treat you like kids. They always feel that being new and fresh out of school we ain't thinking adults yet. We cannot be left alone to do things on our own. Constant monitoring and mentoring is needed. Yes, some but not all. They treat staff like kids and feel staff should be scolded when they do things wrong.

Had a run in with a boss like that, asked me why I never scold my staff, is it because I like being popular. Told him it is not being popular but it is a respect that I know what they are doing and treating them like adults. He said, adults? You think those people outside are adults? They are acting like kids. Told him that if he continues to think them as kids they will always be kids. its just like if you give peanuts, you don't expect tigers to appear. You are gonna get monkeys. So if you feel your staff is like children, they will be like children to reciprocate how they are being treated.

4. The Mama-san

These managers are like social butterflies. They are where their bosses at, whether they are really capable it does not matter. They are just damn good at PR. Their bosses probably got promoted the same way and he is telling you, you need to be seen in front of your boss. He will step over their peers or worse step over their own boss to go direct to the boss's boss.

You may be asked to do the same thing so that your boss can look good like his whole team worships the ground the boss's boss walks on. You indirectly have been implicated to become a slave to your boss and boss's boss. They get promoted not because of the work they do but because this person will look good in front of people.

If you are a female staff and look ok sometimes you get pushed to get recognised in front of the boss's boss. This happens in social gatherings and when alcohol is involved.... thus your boss like mama-san and you maybe blinded by the promise of promotion and all.

5. The Not-For-Profit

Ever entered a department and did not know what to do? You do not know where the department is heading? You have no mission because the boss has none or a very loose one.Your mission, vision and core value is on the wall but it does not seem the department is moving that way? Your boss is soft and weak. He does not have a mind of his own. Some people can be contented with bosses like that. Just chill relax, other departments know that your boss is like charitable organisation, they know you will do whatever that is thrown to him. They take it on. Typical yes man.

You get thrown the extra work to do without the extra pay. You start thinking what the hell you are doing things that are totally unrelated to you. You start wondering what the mission and vision on the wall really means. You start feeling that whatever you do has no more meaning.

So if you have other experiences with lousy bosses please comment below :)

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