A loan is better than a handout

I prefer the government to give a soft loan to businesses and individuals to cope with the economic downturn, rather than give a cash handout.

Here are my reasons:

a) As it is a loan that needs to be repaid, it does not really cost anything to the government, unless the loans are not repaid due to bankruptcy. This is likely to be a modest percentage of the total loans.

b) It is easier for the government to extend the loan to every business or individual that needs the money. There is no need to set up complicated rules to rule out parties that may need the help

c) The amount of the loan can be capped at the actual loss of income of the individuals or the rental and payroll expense of a company. The loan can be extended during the period of the economic downturn and cease when the economy recovers.

d) An interest rate should be charged on the loan. It can be set at the rate of inflation. This rate can be increased after the economy has fully recovered.

e) The government can pass a law that the full loan or a certain percentage of it can be recovered from the retirement savings of the individual. In the case of a company, it can rank in parity with the secure debts of the company.

We should set out the mechanism for the granting of these loans, so that it can be used with clarity when there is a severe economic downturn.

 

Tan Kin Lian

 

 

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12 Responses to “A loan is better than a handout”

  • Wasting our reserve:

    Some of the handouts, especially to individuals, are good (But, remember, this is still a chicken wing after they have already taken many chickens from you.)

    But, some of the big handouts to companies are really a huge waste of our resources! And the President agrees?

    They just anyhow pay 25% of wages. Heh, many companies are making profit or not making losses during this time, why do you make 25% of their wages? Isn’t this a huge waste of our resources?

    Other countries are more careful. Canada, e.g. wants companies to show that their revenue has dropped by 30% or more.

    Why can’t Singapore do the same? I don’t want my reserve (yes, my, our reserve) to be squandered on profitable companies!

    President, your Excellency, are you listening?

    What do you think?
    NTUC fairprice need wage subsidy?
    Civil service need wage subsidy?
    Universities need wage subsidy?
    And other companies that are still profitable?
    The gov can save many billions of dollars by excluding these.

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  • Raiding it兵慌马乱:

    How to independently audit that out of the billions taken out from the Reserves, how much really went into which account and I am not saying Trumpasek Hoardings.

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  • NotMyProblem:

    @Mr. Tan; do you think those budget this, budget that are gift to you is it?

    Wake up, those are loans, you have to pay interest, forever! You don’t even need to negotiate the rate. PAP can vary it when ever it likes.

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  • Steven:

    If TKL is too rich and does not need or want the payouts, I can give him my bank account for him to transfer to me all that is due to him.

    It is obvious TKL does not know or understand the situation of those at the bottom of the financial ladder.

    Although our President has little power, I still think it was good TKL lost his deposit at the presidential election he took part in.

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  • tan ah tan, why so cock???:

    although we dislike sheep for having ruined our lives, we still love them as fellow humans.

    but we have never believed a business should be given money, sheep CPF money, when it is sheep who deserves their own money and not businesses.

    n other words,

    give real money, cash, to sheep.

    forget about businesses. they can restart when things become good again. anyway, when businesses were making money what did they do? they bought Mercedes, Maseratis and Condos. so if things are bad at the moment, there is nothing wrong for these businesses to sell their Mercedes Maseratis Condos.

    money for sheep. businesses can close and restart.

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  • TKL is naive.:

    TKL is naive. GE is coming. Loans cannot be used to “buy votes”. Anyway, can recover what is given out by increasing GST.

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  • CPF Not Your Money:

    Not a loan, not a hadout. Return our CPF as due.

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  • patriot of TUMASIK:

    Give up an IDIOT in TOTAL Denial!!!

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  • TruBlu:

    TKL,no!
    I tell you RETURN OUR CPF!
    WHY NEED TO BORROW N PAY INTEREST TO THE *BANKSTER* at CPF *BANK*?

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  • TruBlu:

    when COMPANIES are doing well,where did you see them helping the EPOPLE especially the needy? Or,even their lower rung workers?

    THE BOD N THE MANAGEMENT ONLY PAY THEMSELVES MILLIONS OF DOLLARS IN STOCK OPTIONS,BONUSES AND OTHER PERK$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$!

    Guess these top execuTHIEVE$ are learning from the PAPple!

    now,they are in trouble owing to poor business arising from COVID,the PAPple rush to give them taxpayer money in LIGHTNING FLA$h!

    I TELL YOU,even if these comapnies tide over,and when du$t settles down,they will SQUEEZE the PEOPLE!!!

    I have been HARPING N HARPING like the hootings of the old owl that IT IS HOARDING THAT CAUSES THE WORLD’S PROBLEMS AND problem$$$$!

    GREED AND SELFISHNESS IS HOW THE EVIL FORCE feeds and thrive on.
    and ,GREEDY RICH N POWERFUL are the MINION$ FEEDING THIS EVIL FORCE!

    ONLY BY SHARING CAN THE WORLD BE TRULY A BETTER PLACE.

    LOOK AT A COUNTRY IN micro perspective AND THE FAMILY in microcosm.

    when members get SELFISH N GREEDY,THE NATION SUFFERS,so too the family members?

    it is the same with corporates operating globally and across sovereigns around the world!

    pray enlighten my simple mind,WHY ARE THERE MORE BILLIOANIRE$$$ WITH HIGHER NET WORTHS DURING THE LAST 15 YEARS WHEN GLOBAL ECONOMY WAS AILING?

    SO,YOU SEE WHEN the RICH NPOWERFUL CARE ONLY FOE THEMSELVES AND THEIR BANK ACCOUNT$$$,THE WHOLE WORLD SUFFERS,with the ordianry folks facing the gun first,followed by the RICH THEMSELVES!!!!

    WHAT IS LACKING IN THIS CURRENT WORLD IS NOT TECHNOGY OR INTELLIGENCE,REAL OR ARTIFICAIL,what is TRULY LACKIJNG IS HUMILTIY N GENEROSITYfor without which,there is NO TRUE WISDOM,no matter how $HREWD OR SMART clever people are????

    QUESTION: DID CLEVER PEOPLE FORESEE THIS COVID? OR SARS…

    GO FIGURE OUT, C L E V E R A$$HOLE$!

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  • individual loan:

    For those in diffuculties now,better to loan to Individual at low interest or let them draw from their CPF,especially for those who lost their jobs.
    Better than for them get a ridiculous high interest loan from legal loan sharks.

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  • Forced Companies To Save:

    When the companies are making profits, they bought Mercedes, Condos etc ..When they are losing money like now, they expect the govt to use taxpayer money to help them. WTF

    I suggest that when companies make profit, a certain percentage of that profit be kept by the government and cannot be used unless the companies are losing money. Therefore when time like this, the companies can withdraw these money to help themselves rather than depending on the govt to use taxpayer money to help them.

    This will allow the public to withdraw their CPF when ther are 55 years old.

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