Suffice to say an examination is not a life made! There will be other options.
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OK. Thought I shared my thoughts on the Budget 2013 posted in the REACH Website:
"LuKeehong 01 Mar 2013, 2.35PM
Dear REACH
Was at the REACH Post-Budget Public Forum last night. Asked the 1st question but have some more to share. So, here I go ...
1. Quality Growth Theme
1.1 At A1 and C59 of DPM Tharman's 2013 Budget speech, 'Rental Cost went up' was mentioned. As many of the low productivity sectors targeted by the PIC and Enhanced PIC + Wages Credit Scheme (WCS) like Retails and F&B will have RENTAL COST as one of their BIG cost components besides Labour Cost, why there is NO mention or measure to address Rental Cost?
MOS Josephine and Dr Amy responded to the effect that: rental cost is subject to free market force. Also, relief for the businesses is through the Corp Tax Rebates scheme.
My contention points:
- Real Estate Developers and Landlords are MAKING super profit (Don't want to sound too much like an OLD communist) based on an INEFFICIENT construction industry fed on CHEAP FWs, paid by LOW WAGED and LOW PRODUCTIVITY tenants in the Retails and F&B businesses. This PICTURE does not look right somehow?
- OK. Leaving PRIVATE commercial properties rental aside, the GOVERNMENT, being the LARGEST landlord in Singapore, has DONE a lot of good by using void decks in HBD flats to put up PCF Kindergartens, Elder Care Centers, Child Card Centers, etc. The COST to the consumers who use these facilities and services pay MUCH lower prices. So, RENTAL cost is a BIG factor. No denying it.
1.2 SMEs' pains and Transitional Assistance
- I feel that SMEs have been WARNED in Budget 2012, it seems that SMEs are NOT responding. Maybe the take up in the 'old' PIC was so underwhelming that the Government has NO CHOICE but to administer 'tough love'. To wean the SMEs from cheap FWs and Fake FTs, pains are applied through the raising of FWL and tighter eligibility criteria for S- and E-pass holders.
- WCS: glad that MOS Josephine CLARIFIED that it is MEANT to help Companies that are 'into' productivity improvement to defray some 'wage costs' for Singaporean employees.
Will employers bite? If I am the employer, NO. NOT until I take up the PIC and Enhanced PIC and get some REAL Productivity gains.
As for potential ABUSES, I think the ENFORCEMENT agencies have to HEIGHTEN their VIGILANCE as quite a few Speakers talked about it even though MOS Josephine, rightly said, we have to trust the business people to do the right thing. We JUST don't want GOOD money goes to the few BAD GUYS!!
1.3 Targeted approach to productivity improvement
- First of all, A SHAME that the Productivity PUSH since NPB --> SPRING (remember Productivity Bee???) back in the early 80s was LOST!! It revealed a SIGNIFICANT weakness in Singapore system that we are WEAK in inculcating permanent and MINDSET change. The molding of VALUE bit. Something we need to think deeper and harder.
- glad to see SOME sector specific initiative being launched. The 2/3 Singaporeans holding PMET jobs by 2030 Vision will have to be built up Industry by Industry and Sector by Sector to get some 'clarities' of if it is real and achievable.
- F&B and Retails: A speaker mentioned the operating models in Japan with minimal staff + self-ordering/serving consumers taking and returning food trays, USA waiter doing ordering taking/serving multi-tasks, etc.
These are just SOME of the many Productivity Improvement possibilities available, hopefully the PIC and Enhanced PIC programs will do these. Workflow change/improvement, deployment of ITC, etc.
Was at the REACH Post-Budget Public Forum last night. Asked the 1st question but have some more to share. So, here I go ...
1. Quality Growth Theme
1.1 At A1 and C59 of DPM Tharman's 2013 Budget speech, 'Rental Cost went up' was mentioned. As many of the low productivity sectors targeted by the PIC and Enhanced PIC + Wages Credit Scheme (WCS) like Retails and F&B will have RENTAL COST as one of their BIG cost components besides Labour Cost, why there is NO mention or measure to address Rental Cost?
MOS Josephine and Dr Amy responded to the effect that: rental cost is subject to free market force. Also, relief for the businesses is through the Corp Tax Rebates scheme.
My contention points:
- Real Estate Developers and Landlords are MAKING super profit (Don't want to sound too much like an OLD communist) based on an INEFFICIENT construction industry fed on CHEAP FWs, paid by LOW WAGED and LOW PRODUCTIVITY tenants in the Retails and F&B businesses. This PICTURE does not look right somehow?
- OK. Leaving PRIVATE commercial properties rental aside, the GOVERNMENT, being the LARGEST landlord in Singapore, has DONE a lot of good by using void decks in HBD flats to put up PCF Kindergartens, Elder Care Centers, Child Card Centers, etc. The COST to the consumers who use these facilities and services pay MUCH lower prices. So, RENTAL cost is a BIG factor. No denying it.
1.2 SMEs' pains and Transitional Assistance
- I feel that SMEs have been WARNED in Budget 2012, it seems that SMEs are NOT responding. Maybe the take up in the 'old' PIC was so underwhelming that the Government has NO CHOICE but to administer 'tough love'. To wean the SMEs from cheap FWs and Fake FTs, pains are applied through the raising of FWL and tighter eligibility criteria for S- and E-pass holders.
- WCS: glad that MOS Josephine CLARIFIED that it is MEANT to help Companies that are 'into' productivity improvement to defray some 'wage costs' for Singaporean employees.
Will employers bite? If I am the employer, NO. NOT until I take up the PIC and Enhanced PIC and get some REAL Productivity gains.
As for potential ABUSES, I think the ENFORCEMENT agencies have to HEIGHTEN their VIGILANCE as quite a few Speakers talked about it even though MOS Josephine, rightly said, we have to trust the business people to do the right thing. We JUST don't want GOOD money goes to the few BAD GUYS!!
1.3 Targeted approach to productivity improvement
- First of all, A SHAME that the Productivity PUSH since NPB --> SPRING (remember Productivity Bee???) back in the early 80s was LOST!! It revealed a SIGNIFICANT weakness in Singapore system that we are WEAK in inculcating permanent and MINDSET change. The molding of VALUE bit. Something we need to think deeper and harder.
- glad to see SOME sector specific initiative being launched. The 2/3 Singaporeans holding PMET jobs by 2030 Vision will have to be built up Industry by Industry and Sector by Sector to get some 'clarities' of if it is real and achievable.
- F&B and Retails: A speaker mentioned the operating models in Japan with minimal staff + self-ordering/serving consumers taking and returning food trays, USA waiter doing ordering taking/serving multi-tasks, etc.
These are just SOME of the many Productivity Improvement possibilities available, hopefully the PIC and Enhanced PIC programs will do these. Workflow change/improvement, deployment of ITC, etc.
2. Inclusive Society
Kudos to the government for continuing to give handout where it is most needed - the young, the old and the disadvantaged. STILL the root cause of Higher Cost of Living is there. High RENTAL COST is there!!
2.1 Pre-school and School efforts
- great to FINALLY have MOE coming to 'pioneer BEST PRACTICES' with the set up of some kindergartens. AND
- to provide focused help on Disadvantaged Students with smaller class that required MORE good teachers.
Personally I feel that one of MOE's KPIs must be: how can the Vision of 'Every School is a Good School' be a REALITY? With this, we will see the DEMISE of the multi-million dollar Tuition Industry!! And the TUTORS should ALL join MOE as REAL Teachers!!
When this is achieved, there are MANY BENEFITS:
a. Parents can SAVE money on: transportation of their kids as they will be studying NEAR their homes, on tuition as their kids already LEARN WELL in their REAL SCHOOL!
b. turning the many 'over-paid?' Adam Khoo type, Mind-Champ, Mind-Edge, Learning Lab, etc employees INTO REAL TEACHERS with MOE!! (I cannot FATHOM how can a tuition teacher who teaches less no. of students get paid a LOT MORE than a full-time, dedicated teachers. Who, by the way, cannot, unless Learning Lab and some other BRANDED TUITION schools, 'pre-test' their students!) It is a CRIME against the MOE Teachers. Seriously!!
Notes: This effort has to be PART of the 'Marriage and Parenthood Package' roll out - when Singaporeans who want to get marry and have kids know that having a kid, after getting their 1st HDB flat (Minister Khaw promised 'affordable' 1st HDB) means: more child care near you live, good school near your live, good school that save you tuition fee expenses, etc. They WILL procreate like Rabbits!! LOL!!
2.2 Progressive Tax on Property, especially Investment properties
I like it. As long as the top end of the progressive tax structure DOES NOT make any reasonable Wealthy and Rich people/investors feel that it does not justify having a 'stable, harmonious and safe country' where I can make money from many avenues besides property investment.
2.3 HOT topic, supposedly, the Progressive Car Levy
Car is a LUXURY item. Period. That is my stand. In fact, I advocate, 'Dutch Auction' where you will PAY for whatever price you bid for COE after the LOWEST QUALIFYING bid is awarded!
However, some who claimed they have 'special needs' for car.
e.g. family with young kids and aged parents - in time, all will Live, Learn, Work, and Play where you like. For kids, good child care, good school near your house. For aged, good Elder Care near your house.
e.g sales people - part of the business cost. If the business CANNOT afford it, the people CANNOT afford it.
3. Healthcare COST
NOTHING specific has been revealed except the hint that: MOH is SERIOUSLY reviewing the 3M system. For me, a National Insurance Scheme is important. Is it a tweaked Medishield? I don't know.
Oh one more thing: Medisave - I STRONGLY appeal to the government to take the 'you must be a filial child' and PAY for your aged parents' healthcare cost FIRST before we will help your aged parents using the Medifund, assuming the MediShield did not work or was insufficient.
REASON: the young couples are trying to RAISE a 3-kid (not stop at 2 right!! Remember the TFR thingy?) with 'affordable' 1st HBD flat, no car because live/learn/work near their HBD flat, etc - they are ALREADY working hard. Most PARENTS DO NOT want to see their children's lives be burdened!! Agreeable?
Outstanding: I await the COS of MOH....
4. Assistance for Cost of Living, etc...
I will take whatever is given to me. No question asked. And be thankful. :-)
Well, there are a few loose ends here and there. BUT overall, this is WHAT this Budget meant to me.
p/s: I am awaiting MORE from the various COS debates...
Best regards
LU Keehong Mr.
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