National Day Rally – some questions
Wednesday, 20 August 2008, 12:22 pm | 946 views
Leong Sze Hian / Columnist
The Prime Minister spoke about several issues in his National Day Rally speech on Sunday. I would like to focus on three of them – vehicle-related revenue, contributions to the Mosque Building and Mendaki Fund (MBMF) and briefly, rental flats.
Speaking on the cost of owning cars, the PM said that the Government collected $6 billion in vehicle-related revenue in 2000. In 2008, the figure has been halved – $3 billion, the PM said. He added that this effectively means that the Government has “saved Singaporeans about $3 billion of tax.”
Although total Vehicle-Related Revenues fell from $6.1 billion in 2000 to $3.4 billion now, to what extent was the reduction due to the drop in the Certificate of Entitlement (COE)? COE for vehicles up to 1,600 cc in April 2000 was $44,472, compared to $14,685 in July 2008. So to what extent was the drop in revenue due to market demand and supply, rather than a planned concerted vehicle revenue-reduction policy? Were there any announcements in 2000 or later years, with regards to revenue-reduction policies? Can we have a breakdown of how much such revenue reduction policies have contributed to the reduction, vis-a-vis the drop in COE revenue?
Rental flats – more information please
The Prime Minister also spoke about an “effective safety net” for the “genuinely needy”, as reported here by Channel NewsAsia. He revealed that according to statistics from PAP MPs’ Meet-The-People sessions, more and more Singaporeans are applying for HDB rental flats. They make up one-third of the cases which the MPs see.
The PM related how a 60-year-old lady with three children – two of whom are living in private properties – wanted to apply for a rental flat from the HDB. Her children were even prepared to hire a maid to look after their mother.
Instead of just citing one isolated example of an undeserving applicant, can the HDB give us the statistics on the percentage of the 4,000+ applicants on the waiting list who were “undeserving” ones?
After saying at the beginning of his speech in Malay that “One major worry of Singaporeans is higher inflation,” the PM announced an increase in contribution to the MBMF by Muslim Singaporeans. He “gave the assurance that the new contribution rates will be affordable, especially for those earning less”. I would like to suggest and ask whether the Malay MPs and community leaders have sounded out their community as to how they feel about paying more, particularly with respect to the timing now, as some may be finding it difficult to cope with rising inflation?
I would like to suggest that lower-income workers be exempted from this increase, until inflation returns to normal.
The increase will be between 50 cents to $5 (“Muslims to give more to fund”, ST, Aug 20). This is an increase of between 17 to 47 per cent. Those earning just $1,001 have to pay 17 per cent more, up from the current $3 to $3.50.
I also suggest that instead of the current flat-rate contribution (for example, $2 for those earning up to $1,000 in income), a percentage contribution may be more equitable, such that those who earn more should contribute more. For example, a Malay minister who earns $158,333 a month ($1.9 million a year) will then contribute $633 a month (instead of the new increased amount of $16 a month (from the existing $11) for those earning over $4,000 (which is a contribution rate of 0.4%). Perhaps we may also consider going one step further, by increasing the rate of contribution for those who earn more. How about 0.5 per cent for those earning over $100,000 a month?
Why is it that the increased contribution rate is 0.42 per cent ($12.50) for those earning $3,001 – which is higher than the 0.4 per cent ($16) for those earning $4,001?
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it has been a tradition not just in Singapore Muslim community but across the world by generous Muslims to leave their wealth to a trust (waqf) when they pass away. this can be land, agricultural land, shop, house, river, whatever. the proceeds of such bequethed property is supposed to be mosques, madrasahs, other learning institutions, education, health, poor, sick, needy, etc etc.
in Singapore the total worth of waqf has been declared during some speech by MUIS to be around $250 million. this is uncertain as unofficial sources claim its double than that while some claim its up to a billion dollars. MUIS has not given a breakdown of this. nor can the unofficial sources give a breakdown either. so it remains unclear how much waqf really exist.
some years ago MUIS decided to commercialize these waqf properties. so each year there is again an undisclosed amount of revenues being generated by these waqf properties. some unofficial sources claim the revenues are as low as $10 million but they are sure it will not be a surprise if it is several times more than that.
out of this lowest estimate of $10million, far less than $2million is distributed. the remaining amount is reinvested.
it is sick that the MBMF amount is being raised when there is actually so much money sitting around. these amounts are undisclosed to us.
i know many Muslim friends who are unhappy and want to withdraw contributions. in fact some already refuse to contribute some time ago. i myself did not contribute for some time. but due to some administrative purposes i had to. now i am considering pulling out again.
Dear singapoor
Thanks very much for your information.
I am enlightened!
Cheers
Leong Sze Hian
Doesn’t that sound exactly like our town council model? Collect $, spend a little on what the $ is collected for, invest the rest, make more $, but increase collection rate claiming rise in costs, more to do, etc., when there is a HUGE pot of gold sitting around and growing?
How did PM Lee arrive at $122 or $198 total ERP charges per year for an average motorist???
Let’s do some simple math:
There are 52 weeks in a year.
According to MOM, there are 10 public holidays in 2008 (equals to 2 weeks).
Let’s assume a worker gets on average 20 days annual leave (equals to 4 weeks).
That means a typical motorist drives to/from work (assuming office is in CBD) 46 weeks (52 – 2 – 4) in 2008. 46 weeks equal 230 work days.
compare 230 driving days with the $122 or $198 given by out PM.
Is our PM saying that the average motorist pays less than $1 a day for ERP??!!!
Assuming the average motorist pays $6 per day for ERP charges, total ERP charges paid for 2008 would be $1,380 !!! This is significantly more than the amount of road tax “savings”!!
How did our PM get it so wrong??
Why did PM Lee choose 2000 as comparison? Was it because the COE price was high that year, as well as, the number of COEs issued that year was high??
We still have 4 more months to go for 2008, so how did PM Lee arrive at $6 billion and $160 million ERP collection figures???
PM Lee previously said the July ERP increase alone amounted to $70 million, so how can the total collections from all ERP gantries (including the July increase) be such a low figure of $160 million????
Low birth rate
Govt decides to increase aby bonuses and other incentives. I think it’s not the issue of whether or not there is incentives but rather the main reason for low birth rate among the younger generations is more of a bleak economic environment, especially when our jobs are competed for by foreigners.
Improving public transport
I see no point in implementing ERP as a means to reduce traffic congestion. ERP merely collects revenue for govt but the same problem will always be there. Once again, a longer term solution is required.
This will shred tears to those who watch it … be warned of the brutal truth.
http://www.youtube.com/watch?v=q_lzrGUGAWM
for very long time (more than 150 years) waqf in Singapore was managed just like how for instance the churches manage their properties today whereby whichever mosque that receives the property will manage it. along the way the british did set up a board to manage very few properties. but majority of it was independently managed.
then in 60s or 70s, the waqf properties were consolidated and came under state control. the state model of putting waqf properties under state control, giving a tiny insignificant proportion of revenues to the rightful recipients and reinvesting the rest and also commercializing the management of those charity properties altogether is a failed model. the rightful recipients do not get at all or do not get enough. some of the ways the waqf is managed though legal is unethical and/or contrary to Islamic principles. the community at large also are not satisfied. the level of accountability and transparency is not up to the level as desired by community though it is up to the level as desired by state.
therefore the solution is not raise MBMF contributions. it is not going to make a difference. in a few years, the same reasons cited now for the increase will be given again and there will be another increase. instead what the government should do is divest its control of waqf properties altogether, decentralize it and place it under the control of respective mosque or minority communities (arab, indian muslims, javanese, malay etc) these communities will be able to respond to its own needs faster, more effectively and more efficiently (naturally of course) than bureacratic agencies.
Hi Mr Leong,
I love to read your analysis on various statistics throw out by Singapore Govt. Would you care to comment on the recent enhance baby bonus scheme?
I am quite pissed off that I will be missing out on the baby bonus by a couple of weeks as my first baby will be due this coming Dec. But I am even more pissed off by the incentive our Govt is extending to foreign baby registering as Singaporean. See the following link for the foreign baby incentive.
http://fcd.ecitizen.gov.sg/FCD/Templates/FCD-GenericContentTemplate.aspx?NRMODE=Published&NRORIGINALURL=%2fMarriageNParenthoodPackage%2fFAQs%2fFAQs%2bon%2bBaby%2bBonus%2ehtm&NRNODEGUID=%7bBD96B7A5-AB9C-4745-AF66-3DC082DB0E5E%7d&NRCACHEHINT=Guest#If%20a%20child%20was%20not%20a%20Singaporean%20at%20birth%20but%20obtained%20citizenship%20subsequently
Basically a six-month old baby born on 1st June 2008 and registered as a Singaporean in 1st Jan 2009 will be eligible for the full enhance baby bonus scheme, but my 20 days old Singaporean baby will get nothing. (Well maybe only the tax incentive part.) In fact even a 5+ year old foreign baby can get some pro-rated benefit when they register as a Singaporean.
Singaporeans already disadvantage in many aspect due to influx of “Foreign Talent”. Now even Singaporean babies also losing out to “Foreign Baby Talent”?
[...] more than just throwing money at it – Siew Kum Hong: More on National Day Rally 2008 – TOC: National Day Rally – some questions – My sketchbook: The baby [...]
Hi gtiong
We have put up your comments and query in a new article on TOC – “Nanny gets serious about babies, but”
Cheers
Leong Sze Hian
I totally agree with you ronin. S$198 ERP charges per year is a joke. Even if it is $198 pounds it is still under value.
Why are some people considered undeserving when applying for rented flats. Everyone should have a right if they choose to rent a flat instead of purchasing one. Is it not better for the 60 year old lady to stay in a flat to have a maid takes care of her instead of her children sending her to an old folks home?
PM just only say MBMF rise 50cent – $5 maximum. This just only small money to people since nowday inflation already make our money smaller. How you all can anyhow mislead people using 17% & 47%? Simple math already can tell you all if starting number small, abit rise only can become big % rise. If you pay $1 now, gov next week say fee rise 30cent, this actually is very small rise because is only 30cent, you cant buy coffee drink even. If you go use % count then of course is 30% rise and scare all Malay people! This what we all call bias report and try scare people. Lucky singapore voters all smart, know how think.
Next thing, PM say total car cost you pay is down. This can be coe down or any thing down, never mind what because most important thing is your buy car is now 50% cheap. Simple as that!
Hdb rent house nowday is big problem because the house actually is for poor people stay but see now what happen? Many rich people nowday take thing granted, they already got pte condo and bunglow but still go rent hdb cheap house. You know why? They pay rent for hdb is cheap but they rent out the house give other foreign workers is expenive, so they earn money. How can gov dont stop this type cheating tactic? cheating public taxpayer money!
[...] more than just throwing money at it – Siew Kum Hong: More on National Day Rally 2008 – TOC: National Day Rally – some questions – My sketchbook: The baby package – Empty Vessel: Paying The Price With No Regrets – TOC: Nanny [...]
We are excited over the baby incentives. In fact we were at Gleneagles Hospital on 18-08-08 as I was due with my 4th baby. We prayed hard that my baby would be delivered earlier so that we were not miss PM’s speech.
God’s Grace and my 4th baby was born at 5.18pm and I was back to the maternity ward at 7.30pm just on time to catch PM’s speech.
The improvement made were attractive but we were disappointed that the effective date will be 01-01-09 and there was nothing planned for the father.
However, we are delighted that the effective date was brought forward to 17-08-08 and our 4th baby is also able to receive the baby incentives. Many of our friends actually already joking that we are so “responsive” to Government calling for more babies. We actually loves children and not mind having 4 children.
Please help us to extend our appreciatin and thanks to the government.
Our feedback is that the government should grant the father some Paternity Leave or at least 1st 2 weeks from baby delivery date. The father plays a very important part during the 1st few weeks. Like my husband, he only has 2 days Paternity Leave which is not enough. During the 1st weeks, he needs to take care of me, the baby, my other 3 children which are at 6 yrs, 3yrs and 2 yrs. He needs to fetch them to child care, go to work, go marketing, come home and cook for me and the children. Despite we have a maid and my mom helping during daytime, we take care of all our children ourselves onces we are not working.
He also not only helping me to change baby’s diaper, he take turns to make milk and feed our baby during midnight with me, he bath the baby and the children too
Imagine how tire it is and need at least 2 weeks for the father to get himself pumped up before he gets back to work. Especially my husband is working in the construction site and not office kind of work.
As for the mother, I personnally think that its difficult to clear the balance 4 weeks. Even the employer not mind, we also feel uneasy to take the leave if the work schedule is busy. Like myself, when now I am taking my maternity leave, my work is to be covered by another manager, He himself already have many projects and got to take up mind. (I am a Project Manager with a residential developer). I can only take 10 weeks at moment as one of my project will be completing soon by Oct 08. The other 2 weeks will have to clear by Feb 09 which I am cracking my mind how to clear once we start our busy work schedule.
Anyway, we just wish to feedback our views. We still thankful for the Government’s incentives despite we having children not because of the baby incentives. The most attractive incentives to us are the baby bonus, CDA accounts which we are using for our children child care fees and the tax rebates which my husband and me are using to deduct our yearly income tax.
Thank you.