TR EMERITUS

When TRE republished this, Chris K* commented: In short there is as much risks in an economy growing too fast as in growing too slow. The authorities had to be counter-cyclical i.e. push in the opposite direction to lessen the risks. In Singapore, the govt is cheering on the economy on, adding fuel to the fire. Stratospheric property prices, elevated cost of living, growing disparity in incomes are the result. They are irresponsible and unfit to run the economy**. Because of its housing policies (keep on raising the prices of affordable public housing ’cause not to do so would be raiding reserves), a property crash (not juz the expected 20% fall) will result in a gloomy 50th yr anniversary next yr and the possibility*** of a freak election result. All the govt’s attempts to spend more of our money on ourselves in the hope of shoring up the vote for the PAP will go to nought. As it is, the 20% fall is among other things based on GDP growth this yr of around 3.5%. If this turns out to be too optimistic (remember analysts have been busily revising downwards their above 4% growth), maybe property prices could fall 40%? A crash. Those who want a slowing economy, esp those TRE posters who want a property crash should think of the hard working S’porean home owners (many of whom are their friends and relatives), mortgaged to their eyeballs for basic shelter, not speculators (whose ranks are alleged to include millionaire ministers who have plenty of spare cash) that will be affected by a crash. Why should anyone be happy or gloat that others will suffer if property prices crash, unless the gloaters are lifer’s born losers. (Related post: http://atans1.wordpress.com/2014/01/16/why-banks-tested-for-50-plunge-in-property-prices-and-other-wonderful-tales/) And engineering slowdowns can be tricky. Ask the Swedes. They tried and now face deflation http://www.economist.com/news/finance-and-economics/21606895-interest-rates-are-back-crisis-lows-sub-zero-conditions. Let me be clear, I speak as a retiree who stands to benefit if the economy crashes: prices come down and I can eat gourmet meals every day. So I’m not talking my book in understanding the dilemma that the govt faces, even if it is responsible for the mess we are in. But don’t worry. All the PAP govt needs to do is to allow borrowers to borrow more: http://atans1.wordpress.com/2014/04/29/property-prices-valuations-are-irrelevant-its-all-about-credit/ All those TRE born losers will be left leaving frus and banging balls again. — *          He knows his financial stuff esp risk mgt. He had better. He works as a risk mgr in a nearby financial centre that is bigger than ours. **         His preceding comments: The comparison to the UK right at this moment bears watching. 1 year ago John Carney took over at the head of the Bank of England. He said at the time that interest rates will stay very low for a long time to come. Then the economy began to pick up steam and is now at around 2.9%, strong by European standards and close to the top of its long term growth potential. Last month John Carney has signalled to the markets that the central bank will be moving up its time frame to raise interest rates and head off risks. What are those risks? Strong growth raising the inflation rate. House prices shooting up causing instability. At the same time, the new financial stability committee is called to look into measures to mitigate these risks. ***       Only possibility ’cause of GRC system. Anyway WP will support PAP if PAP doesn’t get majority. Low has said as much. PritamS wants it.   Cynical Investor [Source]: Thoughts of a Cynical Investor (http://atans1.wordpress.com).  Read More →

SG schools in the age of IT and the Internet When I was a student in the 50s and 60s, teachers taught in a no-nonsense, autocratic manner, and saw themselves as strict disciplinarians. They were aloof but fair and had the students' fear and respect. After I became a teacher in the 70s, pastoral care came into the picture. Teachers were told to discipline in a different way - by counselling, understanding and empathising. Teachers had to be friendly and were criticised if they were unapproachable. It is this "buddy-buddy" approach that has led to later problems ("Rise in cases of teachers' sexual misconduct a worry" by Mr Chan Cheng Lin; June 23). Young teachers are taught to reach out to their students but not where to draw the line. On the flip side, teenage students nowadays are far from innocent. They are exposed to all sorts of things on TV and in movies, the Internet and online games. But they are allowed to hide behind the assumed innocence of their age when parents expose the illicit relationships. True, the errant teachers should know better, but they, too, are exposed to the morality of this generation. This state of affairs is nothing new. But while tongues may wag, many prefer to turn a blind eye and deaf ear. Tai Lung Keow (Madam) *  Letter first appeared in ST Forum, 21 Jul.  Read More →

Lim Chap Huat BBM According to Forbes, the number of billionaires in Singapore has expanded from 21 last year to 26 this year, in US$ term. Topping the list are property magnates Robert and Philip Ng, sons of the late Ng Teng Fong, from Far East Organization and Sino Land. They added US$2.2 billion to their wealth amid an expansion of their property empire to Australia, and their net worth is now at US$12.8 billion, said Forbes yesterday (24 Jul). Facebook co-founder Eduardo Saverin also saw his wealth grow to US$4.2 billion due to the climb in value of shares in the social networking company. He is listed at No 6. The list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, analysts and other sources. Net worths are based on stock prices and exchange rates as of the close of markets on 11 July 2014, Forbes stated. Below is the top 10 richest in Singapore: Robert and Philip Ng - US$12.8 billion (S$15.8 billion) Kwek Leng Beng - US$7.8 billion (S$9.7 billion) Khoo family - US$7 billion (S$8.7 billion) Wee Cho Yaw - US$6.2 billion (S$7.7 billion) Kwee brothers - US$6 billion (S$7.4 billion) Eduardo Saverin - US$4.2 billion (S$5.2 billion) Goh Cheng Liang - US$3.2 billion (S$4 billion) Richard Chandler - US$3 billion (S$3.7 billion) Peter Lim - US$2.5 billion (S$3.1 billion) Kuok Khoon Hong - US$2.4 billion (S$3 billion) The overall rich list for Singapore is again topped by property barons and bankers. Mr Lim Chap Huat of Soilbuild One new entrant to the Singapore's billionaire list (in S$) is Mr Lim Chap Huat of property and construction group Soilbuild. He is listed at No 31 with a net worth of US$890 million (S$1.1 billion) [Link]. Forbes described him [Link]: "Son of a rickshaw driver, Lim Chap Huat set up a small construction outfit with two partners in 1976 at age 22, contributing $4,000 that he'd earned teaching math part-time while studying engineering. He expanded the Soilbuild Group into property development and listed it in 2005. Five years later he took the company private, buying out his partners who retired. Last year he listed a REIT and the construction unit. Soilbuild's first overseas foray is in Myanmar where it is developing luxury residences. Wife Jee Lin heads sales and marketing in group." In the latest Soilbuild’s Annual Report 2013 filed with SGX [Link], Mr Lim who is the Executive Chairman of Soilbuild, said that they "benefit from the ability to tender for public sector projects in Singapore of unlimited contract value" as its subsidiary has an ‘A1′ grading issued by BCA: “We benefit from the ability to tender for public sector projects in Singapore of unlimited contract value as our subsidiary, Soil-Build (Pte.) Ltd., has an ‘A1′ grading issued by BCA. While engaging in public housing contracts such as our Tampines Greenleaf project forms part of our drive to support national development, this contract award also serve as testimony to our commitment to construction activities of a higher standard. We are pleased to have secured two new public housing contracts during the year under review and will strive to undertake more national construction projects in future.” Soilbuild Executive Chairman Lim Chap Huat BBM (Photo: Soilbuild Annual Report 2013) Incidentally, Tampines Greenleaf HDB BTO project which Mr Lim mentioned in the annual report is currently under fire by new residents who have moved in recently. Apparently, residents have been reporting in social media defects found in their BTO flats. Even HDB acknowledged that out of about half (430) of the flats handed over, 30% have reported problems ('Defects reported in BTO flats constructed by Soilbuild – firm linked to PAP grassroots'). According to HDB [Link], the building works for Tampines GreenLeaf BTO project were awarded to Soilbuild on 26 Sep 2011, 3 years ago, at value of $131 million. Soilbuild also made news in May last year when it welcomed the Govt’s 6.9 million Population White Paper. Mr Ho Toon Bah, executive director of Soilbuild, said, “The 6.9 million population figure is good news to us. It means that there are more houses to build and more jobs for us!” Mr Lim then added, “We intend to further develop our position in the public housing sector as HDB ramps up the construction of public housing in the coming years. We believe that our track record in public sector projects puts us in good stead to compete in future tenders from the HDB and other public agencies.” In Jul 2011, JTC sold its industrial properties to Soilbuild and Temasek-owned Mapletree Industrial Trust as part of its "privatization drive". The divestment comprise a total of more than 300,000 sqm of property space. The first tranche was sold to Soilbuild Group at $288 million consisting of 10 blocks of flatted factories and amenity centres while the second tranche, which comprises 11 blocks of flatted factories and amenity centres, was divested to Mapletree for $400 million. At the time, JTC CEO said, “The aim of JTC’s divestment exercise is to promote competitiveness and vibrancy in the industrial property market so that existing and prospective tenants may benefit from more options and choices.” He added, “Soilbuild Group Holdings and Mapletree Industrial Trust were selected after a rigorous two-stage tender process. Both are established players with a good understanding of the Singapore industrial property market.” Mr Lim Chap Huat has been an active PAP grassroots leader in Nee Soon GRC for many years. He is the vice-chairman of the Citizens’ Consultative Committee (CCC) in Chong Pang. On top of that, he is Assistant Treasurer of PAP’s Chong Pang branch (http://pap.chongpang.org/content/branch-organisation) [Link]. Mr Lim has received both the PBM (Public Service Medal) and BBM (Public Service Star). His company website said of him (http://www.soilbuild.com/abt_our_ppl.html): “A strong believer in community service, Mr Lim is the vice-chairman of the Citizens’ Consultative Committee in Chong Pang. His many contributions were recognised in 2009 when he was conferred the Public Service Star.”  Read More →