your biggest worries?

Updated: 22/08/2011

Independent committee to look into SMRT depot security breach

Public transport operator, SMRT, says an independent committee will be set up to conduct a comprehensive review of security measures and management of the company.

[whAt eXcUse cOmmIttee ? ? ? ? security is a dAIly brEAd & bUtter IssUE ? ? ? ?]

This follows a second security breach at its train depots.

CEO Saw Phaik Hwa said she will be personally chairing the independent body.

She said SMRT takes full responsibility

[CEO shOUld bE sAcked immEdIAtEly fOr sUch LAPSE REPETITION]

for the security breach at its Bishan depot which resulted in a train carriage being sprayed with graffiti.

SMRT said it occurred at a location where upgrading works to the security measures were " being scheduled."

She told reporters at a media conference this afternoon that the incident was unacceptable.

[thE fAct Is thE LAPSE REPETITION is AlrEAdy AccEptEd ? ? ? ?]

And the top priority for the company now is to ensure all security gaps are immediately addressed.

[It wAs stIll nOt a tOp prIOrIty AftEr the fIrst IncIdence ? ]

-By Hetty Musfirah

gOOd gOvErnAnce nEvEr AccEpt FAILURE REPETITION

PE: Candidates debate role of President in Channel NewsAsia forum

The four candidates getting prepped up

SINGAPORE: The role and function of the Elected President dominated a television debate organised by Channel NewsAsia.

The hour—long programme, called " Meet the Candidates" , featured all four presidential candidates together on television for the first time.

It will be aired on Channel NewsAsia at 8pm on Tuesday, 23 August. The programme will also be simulcast on MediaCorp’s 938LIVE. There will be a repeat telecast on Channel 5 on 24 August.

The candidates were interviewed by

Professor Tommy Koh, chairman of the Centre for International Law at the National University of Singapore

Janadas Devan, director of the Institute of Policy Studies at the Lee Kuan Yew School of Public Policy and

Debra Soon, managing director of Channel NewsAsia.

[Interviewers shOUld be eX-presIdents ? ? ? ? ?]

After a quick introduction by each candidate on why they should get the popular vote, it was straight to question time.

The candidates crossed swords on the limits of the President’s constitutional powers, how they would act on proposals to draw down on past reserves and exercise their moral authority.

They were also asked how they would vet civil service appointments.

Mr Tan Jee Say said: " I would subject the appointees, the recommendations of the government, to a fair bit of scrutiny.

" We are talking of very senior appointments and we must do justice to the powers of the president. We should not take a flippant attitude, that this is from the government’s recommendation and we accept it without question."

Mr Tan Kin Lian said: " I want to check on what are his (appointee) values, and I want to see whether he holds the values of honesty, fairness and a sense of public service. And I will probably want to influence him that these values are very important."

Candidates were also quizzed on what they would say to the leaders of China, India, Indonesia and the United States.

[Public sErvAnts nOt mErcEnArIes]

Dr Tan Cheng Bock said: " The four leaders you mentioned are very important to our country so I’ll be very, very cautious.

" I definitely have to act on the advice of our foreign ministry. Each country has a particular relationship with us, and I have to be guided by how far I can go as a President in my conduct with all these leaders in my conversations."

Dr Tony Tan said: " I would give the same message to any of the four leaders. I would say, in a very polite way, that the issue facing all of us now in the world, in your country, in Asia, in my country in Singapore, is the global economy and the precarious state of the global economy today."

In a separately recorded programme for www.channelnewsasia.com, the candidates also took questions from the public that were sent in earlier. The programme will be uploaded on the website from 9am on Wednesday.

— CNA/ir

By Channel NewsAsia, Updated: 22/08/2011

HDB abusing its power as land owner, says WP

Workers' Party

SINGAPORE: The Workers’ Party (WP) has accused the HDB of abusing its power as land owner by transferring the management rights of 26 common areas from the Aljunied—Hougang Town Council to the People’s Association.

It also said that the PA has curtailed the ground presence of the elected WP MPs by warning residents who apply for permits to hold events at these sites not to invite the elected WP MPs or risk having their applications turned down in subsequent years.

The WP took over the town council from the ruling People’s Action Party (PAP), following their win at the General Election in May.

In a statement to the media, WP chairman Sylvia Lim said the town council received an email from HDB on June 21, informing them of a list of sites to be excluded from their management.

This included 26 sites which had previously been managed by the former Aljunied Town Council under the PAP, said Ms Lim.

She noted that " no background nor rationale was given for the decision" .

Ms Lim said many of the sites are strategically located, being hard courts or amphitheatres which are highly suitable for organising social activities.

She said the Aljunied—Hougang Town Council also wanted to explore the joint use of the sites with the PA. However, an email from PA dated June 15 indicated that " booking (of the sites) by WP will not be allowed" , said Ms Lim.

Ms Lim also said residents of Paya Lebar who applied for permits to hold the lunar Seventh Month events at the sites were told verbally that they could not invite the elected WP MPs or risk their applications being turned down in future.

However, the former PAP MPs are not under such restraints as they are invited as " advisors" to the grassroots organisations. Ms Lim said such actions would give PAP candidates a ground advantage and permanent presence in advance preparation for the next elections.

Responding to media queries, the HDB said it adjusts its list of sites managed by a town council from time to time and this is based on legitimate requests from relevant agencies or civic organisations.

HDB said in this case, PA requested tenancy for the sites to organise community activities. The request was approved as PA had been using the sites frequently, added HDB.

Also responding was the PA which said the practice of leasing public spaces for community activities is not new, nor is it peculiar to Aljunied GRC. It added that the Citizens’ Consultative Committees under the PA may rent various sites across Singapore for community activities.

The PA reiterated that it is non—partisan and does not allow any political party or MP to hold activities on PA premises or other facilities managed by the PA. And this applies to all political parties and MPs, including the PAP.

—CNA/ac

mArkEt plAyEr

Is

hErE ? ? ? ?

STGCC (Lifestyle Asia)

What does HP’s exit signal for the PC market?

cOnsUmerIsm is dEAd

In US ? ? ? ?

US data not likely to look good

NEW YORK

Already, analysts polled by

Including transportation, orders for durable goods are expected to have climbed by 2.1 per cent last week on the back of supply disruptions caused by the earthquake in Japan and higher bookings for aircraft.

Consumer sentiment is also expected to fall. According to Thomson Reuters/University of Michigan’s own index, consumer sentiment fell to 56 last month, down from 63.7 in the previous month.

US GDP for the second quarter is also expected to be revised downwards to 1.1 per cent, according to a

With data already expected to be bad, market watchers will be turning to comments from Fed Chairman Ben Bernanke instead. Mr Bernanke will be speaking at the Fed’s annual conference for global central bankers in Jackson Hole, Wyoming, on Friday.

Last year, he used his speech to hint at a second round of quantitative easing (QE) in which the Fed bought US$600 billion ($725.5 billion) of Treasuries from November last year to June.

While some are hoping for QE3 now [Only when mArket hIt bOttOm ?], a

It is not surprising then that some investment banks have started downgrading growth forecasts. Morgan Stanley, for example, cut its global GDP forecast to 3.9 per cent growth from 4.2 per cent for this year, and to 3.8 per cent from 4.5 per cent for next year.

But while the consensus is that there will be a slowdown, most are still refraining from saying another recession is due.— Key United States economic data will be released this week starting with figures for durable goods orders on Wednesday. This will be followed by the August consumer sentiment survey and gross domestic product (GDP) numbers for the second quarter on Friday.Bloomberg believe that bookings for durable goods (excluding transportation) probably fell 0.5 per cent last month, after rising 0.4 per cent in June.Bloomberg survey. This is lower than the earlier estimate of 1.3 per cent.Reuters poll revealed that primary dealers set the chances of Q3 in the next six months at less than 40 per cent.

BOJ to consider easing

monetary policy again

TOKYO

The government may also intervene unilaterally again in the currency market to weaken the yen, although analysts doubt whether such moves can alter a broad weak dollar trend.

A senior government official expressed Tokyo’s readiness to step into the currency market to stem yen rises if necessary, saying that recent moves have been speculative.

“Japan’s stance is consistent in that it will take decisive action depending on market developments,” the official told

The central bank loosened policy only two weeks ago to ease the pain of persistent yen strength on the export-reliant economy, and has expressed its readiness to act again if the prospects of a moderate economic recovery come under threat.

After the yen rose to a fresh record high against the dollar last Friday, BOJ officials will scrutinise Asian market moves today and start debating whether the potential harm from recent yen gains warrants further policy action.

The BOJ’s next regular rate review is on Sept 6 and 7.

But the chance of it easing its already super-loose policy before that cannot be ruled out, depending on market developments, sources familiar with the BOJ’s thinking say.

“We will act swiftly, if needed, with an eye on economic conditions,” one of the sources said.

— The Bank of Japan will consider easing monetary policy further, possibly at an emergency meeting before next month’s rate review, if further rises in the yen push down Tokyo stock prices enough to hit business sentiment, sources said.Reuters yesterday.Reuters

When that bowl of curry is too much for the tummy ...

NG JING YNG

jingyng@mediacorp.com.sg

SINGAPORE

The study, which was published last month, found that patients with gastroesophageal reflux disease — upper abdominal discomfort with symptoms like heartburn — who consumed curry experienced greater and lengthier periods of pain than healthy volunteers.— While Singaporeans’ passion for curry — a favourite among all races — was abundantly displayed in recent weeks, a recent study conducted by the National University Hospital (NUH) has found that spicy food such as curry worsens acid reflux.

A man keen to share his achievements

cheow xin yi

cheowxinyi@mediacorp.com.sg

The first things that catch the eye in the office of presidential candidate Tan Kin Lian are the rows of framed newspaper profiles of himself and certificates to document his various achievements in public service and in the corporate world.

Mr Tan, 63, is also keen to share his achievements, including how he transformed customer service at NTUC Income during his tenure as CEO and how his former teachers reminded him that he had gotten full marks in his tests in primary school.

But lest anyone should think that he enjoys blowing his own trumpet, Mr Tan shares with this reporter — who had shadowed him on his campaign trail on Friday — his belief that he can motivate others by sharing his achievements.

O V E R H E A R D :
Mr. TAN Kin Lian wAs AlsO a UniversIty

LectUrer at SMU ? ? ? ?

So many people have got no achievements to talk (of), they don’t take any risks, they don’t want to put in the effort, they want to enjoy themselves. I put in a lot of effort, and if (the efforts) result in success, I say it, not for personal pride, but actually to encourage other people:

These things can be done, why don’t you do it?

Presidential candidate Tan Kin Lian

EvEn wIth jUst an 'O' Level ? ? ? ?

prEsIdEnt nEEds nOt bE UnivErsIty GradUAte ? ? ? ?

becAUsE OncE a prEsIdEnt, thErE wIll bE FREE hOnOUrAblE PhD ? ? ? ?

China adopted an aggressive fiscal stimulus policy even before the Lehman implosion in September, 2008.

It can still afford to do so.

Government revenues are quite healthy these days, up more than 30 per cent for the first half. Government debt to gross domestic product is low (though the problem loans of the big banks should probably be included in the calculus). But China needs to wean itself off its dependence on fixed-asset investment.

So 10 days after Aug 9, the talk in Hong Kong is dominated by concerns about growth rather than fears of inflation.

In coming months, the authorities will probably allow more exchange rate appreciation and policies will continue to encourage rising wages and other measures to foster homegrown demand.

Maybe the next time Western economies stall, domestic demand from Asia will pick up the slack. But not yet.

The Financial Times Limited

Henny Sender is the FT’s International Financial Correspondent.

Asia won’t make up for global slack

Henny Sender

On the morning of Aug 9, the day after

markets in Europe and the United

States collapsed, the Hong Kong government

agreed to sell a plot of land at the

minimum asking price to the sole bidding

group that bothered to show up.

For a property market that has seen

prices rising 80 per cent in the past 30

months, the results sent a frisson of shock

through the territory. That same day, the

Hang Seng stock index dropped 5.7 per cent.

Several days later, Mr Kevin Lai, the local economist for Daiwa Capital Markets, noted that with a 0.5 per cent seasonally adjusted contraction over the second quarter, Hong Kong — the most externally driven economy in the region — is now “halfway into recession”.

Of course, the Hong Kong market always drops more because it is liquid and foreign investors in Asia sell what they can, not just what they wish. But suddenly, the fundamentals have also shifted.

The plunge in the South Korean market was even more dramatic and across the board, hitting everything from Korea’s (generally unimpressive) banks to its awesome technology companies, for the same combination of fundamental and technical reasons.

The plunge reflected the fact that South Korea is a proxy for global growth in trade.

It was not supposed to be like that.

Asia had begun to believe it was different— immune to the disease of low growth and deflation threatening the West’s developed markets and Japan (which has never been considered part of Asia anyway).

The most surprising fact about the contagion was that it caught Asia by surprise, marking the end of complacency about the extent to which the region has decoupled from the rest of the world.

Before Aug 9, most of the region seemed to believe that globalisation could only work one way — to its benefit. The orders would only flow in, trending ever higher, the global capital flows would only gravitate to Asia, never move in the opposite direction.

Review policy of pegging new flat prices to resale flats

IT IS normal for public housing demand and prices in Singapore to fluctuate over time, such as when housing demand plunged during the Asian financial crisis in the late 1990s or when prices rose rapidly with Singapore's sharp economic recovery, low interest rates internationally and high liquidity.

The impact of such price fluctuations usually do not hit first-time home buyers as hard, as Build-To-Order (BTO) flats are priced with a subsidy relative to market values. This ensures that new flats remain relatively affordable to young families looking to start a family.

However, we have reached a stage where the prices of new BTO flats are thousands of dollars more costlier than similar flats offered just a few years ago, due to the almost doubling of resale flat prices in that period.

At the same time, household incomes have not been able to catch up with this rise in home prices.

This pricing model of pegging new home prices to resale market prices is unfair and unsustainable in the long run.

It is especially unfair for young families, looking for a roof over their heads to start a family, to be at the mercy of market forces, especially in tiny Singapore, where families cannot choose to move to the countryside or rural areas for significantly cheaper housing options.

Young families have to suffer the 'luck of the draw' whenever they choose to settle down, with prices fluctuating according to external conditions over time, without any consideration for the relative movement of their household incomes.

In fact, household incomes and home prices sometimes move in contradictory directions, as seen during the 2008 global financial crisis, when household incomes fell across the board while resale and new flat prices rose non-stop.

In such situations, is it fair for young families to have to bear the brunt of the load with smaller incomes but costlier flats, all due to unfortunate timing?

It is time to review the current model of HDB flat pricing.

A fairer model is needed.

Nicholas Loh

Beware housing debt bomb

pharoah88 ( Date: 20-Aug-2011 17:06) Posted:

MR GAN Boey Keow's letter ('Adopt Aussie housing rules' Aug 4) highlighted an Australian measure to maintain home affordability for its citizens. Foreign property owners can buy only new properties, so they can sell their properties only to Australians.

This rule could certainly be applied to Singapore to help stabilise home prices, in view of the significant proportion of foreign buyers here.

But Australian home prices still rose steeply until this year, due to the huge growth in Australian mortgage financing. With up to 95 per cent total loan financing available for Australian houses, even overpriced homes seemed achievable to buyers of modest means, especially when coupled with the 'first home buyer's grant' also offered in Australia.

So Australia now has one of the worst ratios of housing affordability among developed countries, with median home prices of about 7.3 times the median annual income, according to a study.

The same study, by the University of Canberra and a provident fund, found that 60 per cent of first-time home buyers pay more than 30 per cent of their after-tax income on housing.

With the post-crisis realisation that big loans carry big risks, Australians are trying to deleverage their personal balance sheets and housing prices have stalled in many cities.

How is this relevant to Singapore? According to Monetary Authority of Singapore statistics, housing loans issued by local banks have increased almost twenty-fold since June 1991 and over 50 per cent since the 2008 financial crisis alone. Housing and construction loans now account for about half of local banks' loan portfolios and more than half of their annual loan growth in 27 of the past 32 months. It would have been more prudent to stop home buyers from over-extending themselves by controlling the growth of housing credit, instead of allowing a bubble where rises in property prices and housing loans far exceed household income growth.

According to the Department of Statistics, median monthly household income from work increased by just 1.1 per cent from 2008 to last year - far less than the 50 per cent growth in housing loans.

When housing prices fall to reflect the underlying ability of households to service these loans, or future interest rate increases, awkward situations may await recent property buyers with large loans - as well as the banks who lent to them.

Simon Sia

DBS Bank gives student runaround over loan repayment

WHEN I took up a tuition fee loan from DBS Bank to pay for my university studies, I was told that no interest would be charged if I repaid the loan before my graduation last month.

A few months ago, I called the bank to check on the status of the loan and was told I would be informed in advance when interest on it would kick in.

Some two weeks after my graduation, not having heard from DBS yet, I visited a branch of the bank to redeem the loan.

After 50 minutes of queueing, the officer at the counter told me she did not know what my loan status was and could not find out as such checks were done by back-end staff.

She suggested that I try the DBS hotline. Wanting to resolve the issue quickly, I called the hotline immediately and was redirected to the branch officer, who in turn passed me off to her colleague, and then her manager.

Towards the end of this four-party phone conversation, I was informed that DBS had started charging me interest as I had graduated.

When I asked how much interest had been charged to date and at what rate, I was told to call the hotline again.

I had to speak to three more staff members in three separate phone calls before I was finally informed of the interest amount charged on my loan.

There was no explanation as to why DBS had not sent a notification on the loan repayment. I was told I would have to pay the interest on the loan, and then appeal for a waiver.

Not one of the officers could tell me how long the bank would take to credit the interest back to my account once the waiver was approved.

I checked with my peers who had taken up similar loans from various banks. Apparently, only students who had taken loans from DBS had yet to receive notification letters about repayment.

How many fresh graduates are unwittingly being charged interest on their tuition fee loans due to an oversight on the bank's part?

I am also flummoxed by the difficulty DBS heaps on customers who want to find out how much interest they are being charged.

Jacqueline Wong (Ms)

MR GAN Boey Keow's letter ('Adopt Aussie housing rules' Aug 4) highlighted an Australian measure to maintain home affordability for its citizens. Foreign property owners can buy only new properties, so they can sell their properties only to Australians.

This rule could certainly be applied to Singapore to help stabilise home prices, in view of the significant proportion of foreign buyers here.

But Australian home prices still rose steeply until this year, due to the huge growth in Australian mortgage financing. With up to 95 per cent total loan financing available for Australian houses, even overpriced homes seemed achievable to buyers of modest means, especially when coupled with the 'first home buyer's grant' also offered in Australia.

So Australia now has one of the worst ratios of housing affordability among developed countries, with median home prices of about 7.3 times the median annual income, according to a study.

The same study, by the University of Canberra and a provident fund, found that 60 per cent of first-time home buyers pay more than 30 per cent of their after-tax income on housing.

With the post-crisis realisation that big loans carry big risks, Australians are trying to deleverage their personal balance sheets and housing prices have stalled in many cities.

How is this relevant to Singapore? According to Monetary Authority of Singapore statistics, housing loans issued by local banks have increased almost twenty-fold since June 1991 and over 50 per cent since the 2008 financial crisis alone. Housing and construction loans now account for about half of local banks' loan portfolios and more than half of their annual loan growth in 27 of the past 32 months. It would have been more prudent to stop home buyers from over-extending themselves by controlling the growth of housing credit, instead of allowing a bubble where rises in property prices and housing loans far exceed household income growth.

According to the Department of Statistics, median monthly household income from work increased by just 1.1 per cent from 2008 to last year - far less than the 50 per cent growth in housing loans.

When housing prices fall to reflect the underlying ability of households to service these loans, or future interest rate increases, awkward situations may await recent property buyers with large loans - as well as the banks who lent to them.

Simon Sia

Illegal pay pact

'Penalise employers and impose a life ban on the guilty foreigners.'

MR N. NAGESH: 'What is required is a serious enforcement of the law on foreign professionals to prevent circumvention by unscrupulous employers ('Stricter criteria for foreign professionals' yesterday). What these bosses do is extract an agreement with their foreign hirings for a lower salary than the officially declared figure, and then pocket the difference. The Manpower Ministry should penalise such employers and impose a life ban on the guilty foreigners.'

pharoah88 ( Date: 20-Aug-2011 16:32) Posted:

Illegal pay pact: Plug the loopholes

I AGREE with Mr N. Nagesh ('Illegal pay pact' Tuesday) on the need for serious enforcement against illegal pay pacts between employers and Employment Pass (EP) holders.

One company I worked for over-declared the salaries of its EP-holders to the Ministry of Manpower (MOM) and the Inland Revenue Authority of Singapore to fill the positions of draughtsmen.

When I discovered it, I reported the matter to MOM and supplied details of the wrongdoing as well.

The ministry replied that it could act only if the EP-holder complained, an answer that goes against common sense:

Why would an EP-holder lodge a complaint if he was part of the plot?

If such loopholes are not plugged, imposing tougher conditions like raising qualifying pay levels or requiring more stringent educational qualifications may not necessarily make it harder for employers to hire foreign professionals.

Priscilla Poh (Ms)

Saturday: 20 August 2011 Straits Times FORUM Page A44

Be fair

'Criticism should be directed against the hecklers, not Jee Say.'

MR TAN SOON MENG: 'I am not a supporter of presidential candidate Tan Jee Say and I deplore the heckling of any presidential candidate ('The heckling' by Ms Catherine Soh, Mr Murali Sharma and Mr Philip Koh yesterday).

However, criticising him for the actions of the hecklers are, in turn, a form of heckling a presidential candidate, and is also uncalled for.

Criticism should be directed against the hecklers, not Mr Tan Jee Say.

The assembly area at the Nomination Centre is open to all.

Anyone could have stood with Mr Tan's legitimate supporters.

One writer called Mr Tan the leader of the culprits.

But the culprits could well have been people whom he did not know, much less be those in his official group.

A person is not the leader of everyone who purports to act on his behalf nor can he control all who appear to be his supporters. To expect Mr Tan to have exercised control over such culprits is unfair, especially as he was walking offstage, having just finished his own speech, when the heckling began.'

Endorsement puzzle

'Isn't voting an individual's right and a personal choice?'

MR DANIEL CHAN: 'Endorsements of a candidate by groups and associations has left me puzzled.

Did the members hold an election to decide who they would back?

Will the leaders of the group compel their members to vote one way on Polling Day?

Is there a party Whip equivalent?

Otherwise, what significance is there when leaders cite the size of their association in naming their presidential champion?

Isn't voting an individual's right and a personal choice that is sacred and secret?

What does the Elections Department have to say?'

Sorry about the runaround, replies DBS

WE HAVE contacted Ms Jacqueline Wong and apologised for the inconvenience caused ('Bank gives student runaround over loan repayment' Aug 13).

Recent graduates should have received notifications regarding their loan amount and repayment options.

The tuition fee loan is interest-free during the course of a student's study.

As with industry practice, the interest computation is deferred until after graduation. If graduates like Ms Wong made full repayment immediately after graduation, they are not charged any interest.

Graduates may contact the bank if they have any queries about their tuition fee loan.

Ooi Huey Tyng
Senior Vice-President & Head
Unsecured Lending & Cards
Consumer Banking Group (Singapore)
DBS Bank

Illegal pay pact: Plug the loopholes

I AGREE with Mr N. Nagesh ('Illegal pay pact' Tuesday) on the need for serious enforcement against illegal pay pacts between employers and Employment Pass (EP) holders.

One company I worked for over-declared the salaries of its EP-holders to the Ministry of Manpower (MOM) and the Inland Revenue Authority of Singapore to fill the positions of draughtsmen.

When I discovered it, I reported the matter to MOM and supplied details of the wrongdoing as well.

The ministry replied that it could act only if the EP-holder complained, an answer that goes against common sense:

Why would an EP-holder lodge a complaint if he was part of the plot?

If such loopholes are not plugged, imposing tougher conditions like raising qualifying pay levels or requiring more stringent educational qualifications may not necessarily make it harder for employers to hire foreign professionals.

Priscilla Poh (Ms)

Saturday: 20 August 2011 Straits Times FORUM Page A44

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your biggest worries?

Independent committee to look into SMRT depot security breach

PE: Candidates debate role of President in Channel NewsAsia forum

HDB abusing its power as land owner, says WP

Beware housing debt bomb

Be fair