TR EMERITUS

I share my views about the next stage in de-dollarization, i.e. countries with trade with each other using their own currencies instead of the USD. Several oil producers already agreed to sell oil to China in Chinese yuan (CNY). They can keep the CNY and use them to buy products from China in CNY. If they have excess CNY, they can invest them in China stocks or deposits in China banks and earn a market rate of interest. An importing country, say X, can buy products from China and pay them in CNY (if they have this currency) or in their local currency, say CX. China can use CX to pay for imports from X or invest the CX in a bank in X and earn interest. If X runs a deficit or has a high rate of inflation, it will have to pay a high rate of interest to offset against the depreciation of CX and give a positive return after inflation. If China or C uses USD for their trade, they have to pay a fee to the US banks (which makes a huge profit from the trade and also the exchange rate). It is better to bypass the USD and the US banks. I see a world where countries will have to trade with local currencies, rather than with the USD. The USD will lose its status as the currency for international trade and reserves. This will happen quite quickly.   Tan Kin Lian      Read More →

Mr Leong Mun Wai Mr Eugene Tan, an Associate Professor of Law at a public university, wrote an article titled “Progress Singapore Party at the crossroads, in search of relevance,” which was published by The Straits Times on 8 April 2023. The article discusses the appointment of Mr Leong Mun Wai as the party’s new Secretary-General earlier this month. But how could a law academic get his analysis so wrong? It is my personal opinion after having reflected on the contents of his article for some time. Mr Tan, a former Nominated Member of Parliament, is often interviewed by Channel News Asia (CNA) for his opinions on a host of government issues. My respect for him remains. The focus of the article focuses on “conflict” points or controversies during debates in Parliament but is silent on the context of the said controversies. Along with his style of writing, not surprising that Mr Tan (or ST editor) came up with the caption “Progress Singapore Party at the crossroads, in search of relevance.” This gives readers a feeling that PSP is still struggling to find its footing in Singapore as an opposition party. In fact, since its founding in 2019, PSP has made real progress from the outcome of the last GE in 2020 to sending into Parliament, two party leaders into Parliament as Non-constituency Members of Parliament (NCMP). This shows that the electorate believes PSP is a serious political party, not a fly-by-night organization. Here lies its relevance to Singapore’s political landscape. Its relevance is to represent the electorate and present arguments and proposals to improve the lives of Singaporeans since, as we can observe, PAP MPs often sat quietly and listened to unstimulating speeches, all reading from a script. I have not witnessed serious debates among the PAP MPs with ministers, and almost none ever asked hard or inconvenient questions. If Mr Tan had even referred to the PSP website, he couldn’t have missed this: For Country For People. We envision a united Singapore, based on the principles of inclusivity and non-discrimination. All citizens, regardless of race, … The four words “For Country For People” express a commitment to safeguard and improve the lives of Singaporeans. This context is relevant as it drives the direction and energy of the two NCMPs, Mr Leongand Ms Hazel Poa, to propose and seek answers from the government. As a result, Mr Leong asked over 300 parliamentary questions and put up two Motions in 2021 and 2023. PSP is way past the “crossroads” to search for relevance but on a path that Singaporeans welcome because both its NCMPs are knowledgeable and courageous in asking critical questions which often weren’t answered. In the last sitting before Parliament was prorogued, Mr Leong asked Deputy Prime Minister Lawrence Wong four questions (then compromised to two), yet he couldn’t answer. In deflecting the questions, DPM Wong openly used the words “falsehood” and “the sums don’t add up”, but he didn’t answer the questions put to him! The questions put forth by Mr Leong were relevant, not falsehood. Certainly, they weren’t “antics”, as Mr Tan puts it but serious parliamentary business. In reverse, can Mr Tan imagine how the Leader of the House or the Speaker would react if Mr Leong uttered these words? Further, Mr Tan used words bordering on derogatory to describe Mr Leong in Parliament: personality politics dogged but confrontational style divisive histrionics and grandstanding brusque stinging assertions reprimanded proclivity for putting out skewed and potentially misleading information being an irresponsible legislator colour public opinion combative, “take no prisoners” style self-inflicted aspersions playing hard ball Singapore for Singaporeans (to colour public opinion of PSP as anti-foreigners) anti-foreigner orientation firebrand style of politics. All the above adjectives were meant to paint a negative image of both the party and the person in Parliament. Has Mr Tan had a political motive to write such an article? Was there pressure on him to denigrate the new Secretary-General of PSP? Leader of the Opposition Pritam Singh commented last Friday in Parliament that asking for information on the number of Intra-Corporate Transferees from India that worked in Singapore upon introducing CECA was like “squeezing blood out of stones.” Mr Tan also questioned what PSP stands for. He went on to say that since PSP has advocated “Singapore for Singaporeans,” it focuses on “Singaporean pain points.” Was the Associate Professor trying to colour public opinion of Mr Leong by saying that he is against foreign talents? This is untrue. It is a complete misrepresentation to describe Mr Leong as someone who practised “firebrand style of politics” as it was the ruling party members who acted defensively in Parliament when challenged with an inconvenient question and cut short by the Speaker. A Speaker is expected to be fair and impartial in his handling of debates and not be seen as partial. Mr Leong’s dogged persistence to seek replies from ministers should not be construed as “ confrontational.” Consistently in Parliament, during major debates, the government vigorously tried to link him to “ racism “ and “xenophobia” when all he wanted was to “stand up for and speak up for all citizens’ concern and livelihoods” and “developing the Singaporean core.” Therefore, there is no basis for attributing the phrase “Singapore for Singaporeans” to PSP or the NCMP. I am surprised that an academic like Mr Tan, an Associate Professor of Law, can go wrong in his presentation and analysis of PSP and Mr Leong, in Singapore’s political landscape. The losers are the readers of Straits Times as the article is more a personal attack on PSP and Mr Leong rather than an objective discourse to educate the Singaporeans who have to exercise their rights to vote in the next General Election.   Kok Ming Cheang   * More articles by the same author.    Read More →

Singapore's core inflation rate has been around 5.5% in recent months, close to the highest in the last 14 years. MAS predicted that core inflation would remain around 5% through the first quarter of 2023. In addition, it indicated that core inflation would be 3.5% to 4.5% in the rest of 2023 and that overall inflation would be 5.5% to 6.5%. Furthermore, the government predicted that GDP growth would slow to between 0.5% to 2.5% this year, down from 3.6% in 2022. In February of this year, Singapore lifted all COVID-19 restrictions in anticipation of a return to pre-pandemic levels in the tourism industry by 2024. Singaporeans are still waiting to see any benefits as far as rising inflation rates globally are concerned. In the meantime, individuals can take certain steps to protect themselves from bearing the full brunt of inflation. Here are some steps to implement to cushion yourself against high inflation. 1. Keep an eye on your spending and savings When costs rise, sticking to a set budget might be difficult. It is essential to keep tabs on your expenditures. Consequently, you can cut some expenses or look for less expensive options online - limit your online purchases and always watch your online gaming such as at Everygame Poker. Additionally, make an effort to boost your savings. The greater your savings, the larger your savings cushion will be. Remember that the healthcare industry is not immune to the effects of inflation, yet inflation makes it difficult to deal with a financial emergency like a medical one. Fortunately, you can rely on your savings to bail you out. 2. Get rid of unnecessary expenses Consider your regular weekly and monthly expenses and see if you can reduce any, as mentioned in the previous point. Do you pay for a monthly service you don't use, like a video streaming or music subscription, a beauty box, or a gym membership you never use? Do you have a maid or a yard service that you hire to help you out? Until the price of these services drops, you may want to consider performing them on your own. Bring lunch from home rather than buying one if you have a job outside the house. Saving a little bit of money here and there might add up to a significant sum in the long run. 3. Put your money into high-yield investments Equity mutual funds, stocks, and other high-yield investments can sometimes provide returns higher than inflation. These may be useful in protecting your purchasing power from inflation. However, remember that the majority of these investments are risky. Consequently, before making a choice, it is crucial to determine how much risk you are willing to take. Investing in high-yield investments over the long term can help you reduce risk. A diversified portfolio comprising both high-risk and low-risk options helps to strike a good balance between taking on too much risk and earning too little while keeping up with inflation. 4. Lower your energy costs at home The costs of utilities like electricity, water, and heating or cooling can quickly add up. You can cut your energy bill by as much as a quarter by making simple adjustments to your household's energy habits. You can do things like; Fixing drafty doors and windows. Adjusting the temperature in the summer and winter. Switching to LED light bulbs instead of incandescent ones. Buying energy-efficient appliances Taking shorter showers. Washing clothes in cold water. Repairing dripping faucets and ducts. 5. Understand the forces driving different assets Cyclical stocks in the banking, manufacturing, and industrial sectors are highly attractive among foreign equities and commodities. Refrain from letting past correlations fool you; learn what influences various investments. There may be a negative correlation between Treasuries and stocks, but both fall in value as inflation rises. 6. Continue putting money away for the future Although it is more challenging than ever to make ends meet in the current economic environment, it is still crucial to put money aside for your future so that you can invest in yourself. Experts recommend keeping three to six months' worth of expenses in an emergency fund in case of things like job loss, illness, or expensive home repairs. Create a rainy-day fund immediately if you haven't already done so. Your savings will grow substantially over time, even if you can only put away a tidy sum each month. So, what can the citizens of Singapore anticipate in the near future? Have you recently gone grocery shopping expecting to spend your regular amount, only to find that you had to spend more than usual? That's inflation in a nutshell right there. While you might be having a tough time keeping up with the rising expense of living, remember that you're not isolated. Additionally, by putting in extra effort, you'll be making sure that you don't feel as much of a pinch. You can always visit the government website to check the current interest rates and also keep up with how strong the Singapore dollar is. Ultimately, don't let speculations of a recession instill fear or cause you to resort to survival mode tactics. As long as you spend your money intentionally, your dollar will do more for you, even in the current state of affairs.      Read More →