Thursday, 31 May 2012

Big Problem for Singapore : Strong S$ and high inflation...

Big problem for S’pore: Strong Sing Dollar & High inflation Happily I go to Malaysia change my S$1 to $2.52+ ringgit every few weeks to spend… however, some Singaporean ya-ya-papaya think that strong S$ means Singapore economy more powerful or gaining strength on Malaysia and so on. This is the view of IGNORANT people.

 1. Why did MAS allow Sing$ to go up so much despite negative GDP growth last quarter? There is very high inflation in Singapore and raising the S$ makes the imported component of the CPI lower thus lowering the overall inflation figure to 5.3% which is already quite bad. Imagine at 6% our inflation will be higher than 3-month Spanish bonds!!! This is a sign the Singapore govt is losing control of domestic price inflation and using the S$ to make imports cheap to hide inflation pressures.

 2. Our export sector is hurting and property bubble is prop up to keep us out of recession? Why you think MAS allow 50 year home loan. If property sector shrinks immediately, Singapore will be in recession because export sector is weak. The govt is just playing the number to prevent a recession by artificially propping up property sector.

 3. As for some people think S$ strong almighty against the ringgit means Singapore BETTER Malaysia Inflation Rate Actually Malaysian inflation rate is 1.7% vs 5% in Singapore. Malaysian economic growth is 5% vs negative for Singapore last quarter. The way Singaporeans can gain from this is stronger Sing$ is to go to Malaysia to spend their money. But you cannot spend every S$1 in Malaysia no matter what. Most of your money has to be spent in Singapore unless you MOVE TO MALAYSIA. That means you’re exposed to high inflation while Malaysians are not, despite their weaker ringgit. The weaker ringgit means Malaysian exports are stronger.

 4. Strong S$ despite strong outward remittance flow = high dependency on capital inflows of hot money, tax evaders and money launderers Half the workforce is foreign. They feed their families back home in Philippines, India and China. This means there is high remittance flow as these workers convert their salary to foreign currencies putting downward pressure on S$. Our trade deficit is very large. To balance our accounts we depend on rich people from India, China, USA to shift money here to avoid tax in their home countries. Some of the money (like Ma Chi’s) is of unclear origin. This means Singapore is forced to keep taxes on wealth artificially low even as income gap balloons. If billionaires stop parking their money here, the merry-go-round stops and things can sink FAST. Singapore economy is propped up artificially. It is not healthy. We have no Samsung, Acer or HTC.

We are flushing the economy with all sorts of money avoiding taxes, running from their own govt. This means we try to ‘makan’ the highly corrupt western banking pie as western banks fail – this is likely done by deregulation and allowing more shadow activities in Singapore. If Obama wins again, he is likely to shut down this type of parasitic business growing like cancer and breeding the most foul type of financial businesses and humans. Ok… next week I happily go spend my S$ in Malaysia… but I not so ‘gong kia’ to think it is because things are so steady ‘poon pi pi’ in Singapore.

Thursday, 10 May 2012

My neighbor Ah Teck sells tissue paper....

My neighbor sells tissue paper at food court and hawker centers. A few weeks ago, I taught him a simple honest trick to get some free food and he was so thankful to me. I told him that OCBC Bank on Sunday can just walk in on Sunday to get some free cookies and a drink. I told him, in case they pick on him and turn him away, just deposit $20 in his own bank account at cash machine and withdraw it at the ATM on the way out. He was so happy when he managed to get some cookies last week, he modified the trick...he told me he went in twice and managed to get 2 drinks and more cookies.

Today I saw him and he didn't look very happy. What happened is this. Ah Teck sells tissue (3 packs for $1) because his leg has some problems and he can't get a job - his wife is constantly sick due to diabetes. When he goes round the food court he tries not to go to the same table twice so that people don't feel harassed. Today he was forgetful and went to the same table twice and this woman got incensed and scold him "begger get lost" in chinese and flick some hot soup from a spoon onto his face. I'm not too sure but from his description the fierce woman appears to be from China.

Remember when someone comes round to your table at the hawker center to sell tissue, don't just turn them away, they may need some help and you need the tissue anyway so why not do someone a small least let the people go off with some dignity.... What goes around comes around.