Highly mileading claims by dormitories operator

The rate of return of 6.57% from it’s worker’s dorm business, as claimed by Centurion Corp, is highly misleading – it gives the impression that the operation in Singapore is only earning normal profits, when in fact, it is earning super-normal profits.
The bulk of Centurion Corp’s revenue comes from the worker’s dorm business, with significantly smaller portions coming from student’s dorm and optical disc operations.

According to its first half financial statements of 2019, 46% of the beds in the worker’s dorm business are in Singapore (26,100), with the remaining 54% in Malaysia (30,700), and yet, 88% of the revenue comes from the Singapore operation with only 12% from the Malaysian operation – that means the revenue-per-bed in Malaysia is only a fraction of its Singapore counterpart.

The total revenue for the worker’s dorm business for the first half of 2019 is S$41m. Doing some quick P5 maths, each bed in Singapore yields S$230 per month while each in Malaysia yields S$27 – the former almost 9 times as much as the latter. I do not have access to the detailed cost, so I can’t say for sure, but surely Singapore can’t be 9 times as expensive as Malaysia? The only conclusion I can draw is that the Singapore operation is wildly profitable, so much so that it can cover the disastrous investment in Malaysia, which probably has a very low occupancy rate, and still make an overall return of 6.57%.
So, to use the overall worker’s dorm investment rate of return to imply that the Singapore worker’s dorm rate of return is “comparable to reported yields for other property assets” is misleading at best, and dishonest at worst.

The other troubling aspect of the statement from Centurion is its claim that the increased cost of worker’s accommodation post-Covid19, should be borne by the government, dorm operators, employers and the public.

When businesses bring in 1.4m foreign workers, did they consider the external cost brought to bear on society, without their consent – issues like over-crowding, increased cost of living, overloading of public infrastructure and depressed local wages? Did they help to bear part of the cost? If the answer is “no”, why is it that an issue that pertains to the dorm operators and employers need to be shouldered by the government and the public?

Covid-19 has resulted in an increased cost of doing business and companies have to factor that in, not ask that it be shared. Companies have then to decide whether it makes sense to continue using migrant workers or switch to Singaporeans, otherwise, we will be distorting the market, to the detriment of everyone in the long run.

 

Foong Swee Fong

 

 

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17 Responses to “Highly mileading claims by dormitories operator”

  • uselesstankinl:

    WHY ARE WE ALLOWING GOV CRONIES, PUPPETS, THIEVES TO,

    ” RUN ALL OVER US” THE TAX PAYERS ????

    they had been TRAMPLING over our $$$ from day one till now…

    WHY ARE SINKIES KEEPING ‘QUITE’

    WHY,
    WHY ???

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  • Duplicity under spotlight:

    (When businesses bring in 1.4m foreign workers, did they consider the external cost brought to bear on society, without society’s consent – issues like over-crowding, increased costs of living, overloading of public infrastructure and depressed local wages? Did they help to bear part of the cost? If the answer is “no”, why is it that an issue that pertains to the dorm operators and employers need to be shouldered by the government and the public?)

    A highly pertinent observation Mr. Foong on the government’s labour policy. And herein lies the role of Papeconomics duplicity: which is that the governing party is simultaneously reaping business profits from the foreign worker commerce to the tune of 10 billion Singapore dollars annually (correct estimation unless MOM tells it all). Their rationalization for the foreign worker levy tax is to encourage employment of Singaporeans. Seriously ah?

    So those companies and employers who for so long a time have been subjected to such humongous taxations are now telling the Pappy businessmen: Hey bro! We’re in this together don’t forget it!

    By the way, we never knew the ownself-reward-ownself party makes billions $$$ in this mega business until the virus brought them to task. Pappies claim it’s for sheeples sake that they tax and tax foreign worker employers dry. Have you ever tasted a mouthful of their ill gotten spoils? Yes Mr. Foong, so why should we common sheeples bear the burden of private enterprises – Pappy or otherwise?

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  • Agreed:

    Insightful.
    Better to reduce the dependency on FW…
    No more soft or easy option….for Singapore future.

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  • Top Money for Top Talents:

    Dear Foong,
    Think you had mental problem.

    Many Singaporeans had been calling on our great PAP government to help the small businesses.

    So what is wrong with our great PAP government helping small businesses like the dormitories operator ?

    This show that PAP is great. PAP Tua Kee.

    GE2020.PAP.Guarantee.Win.All

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  • Uncle no pbm or bbm:

    These guys have been milking the FW for decades housing them in deplorable living conditions.

    They stay in huge bungalows next to the white monkeys and weekend homes in Sentosa with dead old coot photos everywhere.

    Now they want to sound humble that they are not making much profit from their connections.

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  • patriot of TUMASIK:

    Centurion is a PLC…Massagers @Work while many are WIP awaiting the Masseurs to arrive???

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  • limpei:

    profit goes to them; problem goes to taxpayers

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  • Tremendous:

    Exactly my sentiments. Now they have a 2-in-1 barking puppy plus SHIOK ambassador telling another village the chiefs have been doing all they could to cater for all these foreigner villagers when even the chiefs themselves knew they ain’t been doing much.

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  • So this is Democracy ..hahaha:

    Where are all the Ang Mo is Angel, Ang Mo Tua Kee ?

    Hahaha….come debate your Ang Mo is Angel Democracy … why double standard..

    “When someone targets a police officer or a police station with an intention to do harm and intimidate — that is an act of domestic terrorism,” Department of Homeland Security Acting Deputy Secretary Ken Cuccinelli said at a Washington, D.C., news conference Saturday.”

    Come, come, where is all the Ang Mo is Angel canon fodder ?

    1. When HK protestors did that to HK police station, western media supported it with cheers.
    2. When US police sprayed pepper spray, it is to control the riot. When HK police did that, western media called HK police brutality and violence

    PAP really Tua Kee.. that even gay inclined Taiwan DPP President Tsai copy all our PAP laws and policy..now Taiwan had ISA under a different name called 反渗透法。(anti-infiltration law).

    Anyone that criticized DPP government will be arrested for working with CCP to criticized DPP government…. hahahaha

    GE2020.PAP.Guarantee.Win.All
    $PAP$ Tua Kee; Majullah $PAP$; $PAP$ Huat$ Huat$ Huat$
    Singaporeans must be Cheaper, Better, Faster.
    Workers must accept wage sacrifices to keep businesses going.

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  • WOW!:

    Wow! these clowns don’t even have to stretch out their hands to pluck the low hanging fruits!!…the fruits just fall on their laps!!…like collecting levies and fees!!
    How convenient and smooth flowing!!

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  • Too Connected to Fall:

    Are the dorm millionaires too well connectedGo be allowed to fall like the Titanic about the sink ?

    Clearly no crony capitalism.

    Or is it if they penalised, who penalise the one that approved it’s congested setup ?
    The husband of the mom?

    Can same surname marry and produce defectors kids ?

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  • opposition dude:

    Just watch, over this pandemic is over they will wayang fine a couple of the operators and then say their contracts have been terminated and a new tender will be forthcoming. So after this not much will be mentioned and the new operator will also be cutting corners whenever they can.

    Just like HDB’s lifts when they were malfunctioning and killed a few people, HDB was so quick to blame their contractors instead of blaming themselves for not seeing to it that their contractors weren’t taking shortcuts in their maintenance.

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  • Great Asia:

    Centurion Corp?!!!

    The boss is a PAP lah!

    The other one that starts with “M” is also PAP.

    Ha ha ha!

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  • Bleeding hearts n fools:

    Yrs back I remembered a foreign worker was injured and dumped by the roadside by his employers ,kind hearted sporeans contributed money to send him home after receiving treatment,kenneth jeya advised sporeans not to but instead hold his employers responsible and make them pay,
    Kenneth was right ,prop developers,bigtime contractors and dorm operators and other operators in the construction trade all have one trait,go go their off and for sure you will see fotos of them shaking hands and hobbnobing with mp and ministers,
    These people make obscene money but donot take care of their workers ,they keep costs down to increase their profit margins,inadequate insurance,overcrowding,poor quality food,
    Yet those in this biz have high lifestyles,live in big houses,change their merc every yr or so,spend thousand dollars in karaoke lounges with china girls ,wine women n song,
    When things go wrong it is pushed back to govt ,bleeding hearts and volunteers to cushion the impact,govt money is ultimately our money collected thru taxes
    Be wise fellow sporeans,goodies go to them,we clean up their shit

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  • Review please:

    Need to review the FW Policy…
    Time to reduce the dependency on FW…and the Dormitories problem also will be more manageable with a smaller numbers FW needed.
    Dormitories condition and SOP will need to be improved to reduce the chances of outbreak in future…

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  • What Do Can You Expect ?:

    What can you expect from Grassroot Leaders from the PA ? Just like the PAP all lies and nothing but lies. KNNBCCB

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  • Karma at work:

    The cause of all the problems and difficulties is insatiable greed and inhumanity of the few super rich.
    Karma takes over as appropriate.
    Karma is fair and just and natural.
    Karma will decide when the punishment is enough.
    But the super rich easily and quickly forgets once the punishment is over.
    Too many instances and examples of the never ending greed of the few super rich.
    The few super rich will go back to their old selfish inhumane arrogant ways yet again.
    But they will pay the price for their inhumanity, there is no escape.
    Karma will step in again and yet again in due time however long it takes, as the equalizer and upholder of universal justice as must be.

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