The first thing that came to my mind when I read this report – “MND proposes new stat board to regulate real estate agency industry“ – was whether the millions of dollars that will be spent yearly on this new bureaucracy could be put to better use, like helping the poor.
Eventually, and perhaps inevitably, the costs of running the new statutory board may to some extent be passed on to the real estate profession and ultimately to consumers.
Helping the needy?
Well, on the same day, there was also another report on Channelnewsasia – “NTUC’s social enterprises contribute S$107m in 2009 to help workers” – which threw up the same question: could the money have been better used to help the poor?
The report states that:
“NTUC’s 12 social enterprises contributed S$107 million last year to help workers and their families manage the downturn, a 41 per cent increase from 2008.
It’s the highest amount of assistance given out by the labour movement’s social enterprises since they started operations in the 1970s … S$11 million went into the Labour Movement’s U Care Fund which benefited more than 170 thousand Singaporeans last year”.
Helping 170,000 needy Singaporeans does sound like helping a lot of people.
Since there were so many needy Singaporeans who need help, are more Singaporeans financially stressed?
Does it mean that the help given per person for the whole year was only about $64.71 or about 18 cents a day?
As to the report that “[close] to S$90 million was channeled to help members and their families manage the cost of living with rebates and discounts”, is it really appropriate to describe rebates on purchases and discount vouchers as helping members and their families?
Imagine every commercial entity putting out press releases to say that they helped Singaporeans because they gave out a lot of rebates on their products sold and discount vouchers to buy their products!
Less needy people need help?
According to the latest statistics from the North East Community Development Council (CDC), “[the] number of applications for social assistance continues to slide by 10 per cent over the previous quarter. The CDC said the consistent drop since the second half of last year is another clear sign that economic health is returning”. [1]
It has been reported previously that at its peak, CDCs had a 47 per cent increase in applications for financial assistance. [2]
So, if applications continue to drop by 10 per cent to, let’s say about 20 per cent in total from the peak, does it mean that the number applying for assistance may still be about 18 per cent more than before the crisis began?
If this is indeed the situation, then how can we say that the economy is booming and “is another clear sign that economic health is returning”, if new people seeking assistance, in addition to those who have already applied in the past, are still so high?
To illustrate this point with a simple example, if there were 22,449 applications for financial assistance before the crisis, and this increased by 47 per cent to 33,000, and then falls over the last three quarters to 26,400, does it mean that the number of new people applying every month now on a continuing basis is still about 18 per cent more than before the crisis?
To sum up, I think as long as we still have more new people applying every month than before the crisis, we may not be out of the woods yet.
Other indicators of financial stress
Let’s look at the latest statistics on household incomes, housing, wages and unemployment, which may give us some indication as to whether more Singaporeans are financially stressed?
Household incomes
According to the Department of Statistics’ Key Household Income Trends 2009 report [3], 2009 household income declined across the board for all households, with the median income dropping by 2.5 per cent in real terms.
The household income of those staying in 1 and 2-room HDB flats declined by a whopping 13.9 per cent in 2009.
For employed households, the average monthly income per household member for 2009 was only $334, for the bottom decile of households.
With about 1.2 million households in total, this means that about 108,000 households have per capita income which is way below the $500 benchmark generally used by the Community Development Councils (CDCs) in assessing the need for financial assistance.
As the above refers only to employed households, we may also need to examine how many of the “not employed and also not retiree” households of about 51,000 (4.3 per cent of total households), may also have per capita income below $500.
To this number, we may also need to include the number of retiree households of about 63,000 (5.3 per cent of total households) that may also be below $500 per capita, to aggregate the total number of such “low per capita” households in Singapore.
I estimate this figure to be about 150,000 households.
Against this statistic, perhaps we need to ask whether some may be falling through the cracks, as only 33,000 families are receiving financial assistance from Comcare, inspite of the 33,000 being already a 47 per cent increase in successful Comcare applications over the last year.
The second decile of employed households had an average per household member income of $626.
This group of about 108,000 households may also have quite a significant number that may be below the $500 per capita benchmark.
Although the report says that the Gini, which is a measure of the income gap, has declined further in 2009, after taking into account that a household received on the average $1,273 a year in Government benefits, I would like to point out that most of the benefits are not extra cash that can be utilised by the household.
For example:
- Medisave top-ups for the elderly can only be used for medical expenses
- Post-Secondary Education Account top-ups can only be used when your children enter tertiary education by which time the increase in fees may be more than the top-up
- Only 29 per cent of Workfare is paid in cash with the balance 71 per cent to CPF (not the Ordinary Account)
- GST Credits are to offset the GST increase and not extra cash
- Usave rebates when electricity tariffs have increased
- property tax rebates when property tax was increased last year
- Service and Conservancy Charges (S & CC) rebates when S & CC had gone up
- Etc.
Moreover, I cannot understand the rationale to include medical subsidies and Medifund payouts as “income benefit”?
If I choose to go to the Class C ward in the hospital, how can the 80 per cent subsidy in the medical fees be counted as an “income benefit” to me that has helped to reduce the income gap?
If I am poor and cannot pay my medical fees, how can the Medifund payout to waive some or all of my medical fees, be counted as “reducing the income gap”?
Is there any country in the world that consider such “income benefits” as reducing the income gap?
Housing
The latest Housing Development Board (HDB) Sample Household Survey indicates that 10.7 per cent of elderly households aged 65 and above living in HDB flats, and a whopping 32.3 per cent of “future elderly” who are now aged between 55 to 64, are still paying off their HDB mortgages. Moreover, between three and five per cent of these households have problems just meeting their daily expenses. [4]
Wages
Looking at workers’ wages, rather than household incomes, according to the MOM’s Labour Market report 2009 [5], real earnings fell by 3.2 and 1.2 per cent, in 2009 and 2008, respectively.
Employment
According to the MOM’s latest Employment Situation First Quarter 2010 report [6], on a non-seasonally adjusted basis, the resident unemployment rate was 3.1 per cent in March, which is higher than the 2.9 per cent in December 2009.
The seasonally adjusted figure for the number of unemployed residents was 66,300 in March, which is also higher than the 61,100 in December 2009.
Leong Sze Hian
————
References:
[1] “Number of jobs available goes up sharply for North East District“, CNA, May 4
[2] “ComCare sees highest number of applicants in 2009, up 47% on-year“, CNA, Jan 27
[3] Department of Statistics’ Key Household Income Trends 2009
[4] “Max out your housing loan? Think again”, ST, May 1
[5] MOM’s Labour Market report 2009
[6] Employment Situation First Quarter 2010
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Are more Singaporeans financially stressed?
Judging by the election results time after time, the answer seems to be NO.
Mandate to the PAP to keep screwing Singaporeans. Little wonder why the PAP has not respect for the citizenry.
Most flats sold with low cash upfront:HDB
ST said HDB says: 7 in 10 paid less than $30,000 in past six months.
wongyy says (reading from the same table) : only 1.5 in 10 or 15% paid less than $10,000.
A $10k cut-off is used as it is a fairly significant sum, most banks in Singapore will be reluctant to lend more than $10k on an unsecured basis i.e. without security such as property, shares etc.
Even when a higher cut-off of $20k is used to look at the same info from HDB/ST, 6 in 10 or 61% paid more than $20k cash for their home(HDB flat). We must also factor additional funds (easily more than $20k) for renovation, furniture and fittings such as ceiling fans (you have to live with the old air-con!) Would you agree that most young couples will find it difficult to save $8k every year in the early part of their career?
Thus if the couple require at least $40k to start living on their own in a resale flat, they would have a significant pressure to acquire this sum or shoulder another loan on top of their housing loan. By the way, the housing loan is to pay for a Duplicate Lease from the HDB for 99 years less the age of the resale flat. I know that the couple should be grateful for a roof over their heads, maybe plus a ceiling fan since there will be little left to pay for the old air-con at the end of the month after paying for the fridge, water and sanitation. Better cancel the mobile phone subscription too since the couple are now living under one roof!
wongyy
New stat board = new CEO job for some ‘can’t be promoted further’ senior officer or ‘can’t make it’ apprentice minister.
With general election coming, PAP and its media are feeding us all sorts of misleading “statistics” and anecdotal “evidence” that S’poreans’ lives are getting “better”.
Pure propaganda.
S’pore is a country for the ‘FAT PIGs’.
If you are poor, life is really miserable with all the increases the PAP government imposed on the citizens to satisfied their obscene paycheck.
The help that NTUC or NECDC given to people are widely publicised by the MSM, but at 0.18cts a day by NTUC – big deal.
Yes! in terms of millions, it looks like the citizen are given very much.
Well done Sze Hian, to uncover another propaganda of the PAP crony -NTUC.
The average S’porean are truely financially stressed to meet the daily demand of high COL and fighting hard to survive a decent living with the FAT PIGs enjoying in their ivory tower.
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_523639.html
in this newspaper article today, it shows we are not stress, because the newspapers help us destress.
in the chart shown in the newspaper (not on the website), it shows that in the latest quarter, people had to may MORE for the flats than last quarter. more people ended up paying high COV.
yet, the soothing headline reads:
“Less cash upfront for flats”
you should read the newspaper article with atmospheric Zen music playing from your mini-compo (don’t stress yourself because you can’t afford a hifi).
that way, we will ease ourselves into believing that less cash is needed in an environment of rising prices. this is the ultimate cure to Inflation.
Speaking on behalf of retirees, retirees are stressed financially too. Imagine their CPF money is withheld from them as minimum sum from which they can only draw a decreasing payout over time without the PAP government put in legislation for employer to employed nor create new partime jobs for them. The PAP government is doing a lousy job in the life of all retirees. Better to vote them out.
Looking at the ever-increasing demand for rental accomodation tightly capped by the HDB, one must come the the necessary correct conclusion that the Government is fully aware of escalating financial distress hitting families.
No doubt about this in my mind.
OF COURSE, singaporeans are VERY stressed for money nowadays…!
everything so expensive and prices only go up..
Your pay seldom go up..
Do business also scared of rent hike
work also scared of FTs takeover you
and gov says your pay is enough
because no one is dying on the street
But you see, there a lot of people who borrowed $$$ from loansharks
And that is why so many harrassments — 18,000 cases in 2009
Not because they all borrowed $$$ for gambling..
Some have cash problems
you think the bank will lend you money just like that?
So borrow from loansharks, what to do
those who are rich got $$$$ will be happy in singapore !!
those who are the common people who got not enough $$$$ will be stressed and unhappy !!
without enough money, who will not be stressed ?
who will not be unhappy?
you say ordinary singaporeans STRESSED or not??
It would be wonderful if these statistics can be brought up for discussion in parliament. Nothing might come out of it, but at least we have the pleasure of seeing their mouth opening and closing, trying in vain to answer the statistics…. (applicable to those present AND awake).
To: No Stress!7 May 2010
Re: http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_523639.html
I think the newspaper had a typo, they wanted to write “More Cash Upfront”, not less. sometimes reporters can overlook unimportant words such as “Less”.
Anyway, as we were taught in the article, it’s ONLY one thousand dollars, why you kao peh??
_____________________________
COV refers to the cash paid upfront by buyers above the valuation of a flat.
This figure – regarded as an indicator of the level of demand in the resale market by analysts – stabilised at a median of $25,000 for the first quarter ended March 31, up just $1,000 from the median of $24,000 in the previous quarter.
Basing on my experience, I am a stereotypical single youngest sibling taking care of an aged parent.
By law, I am only allowed to purchase a resale flat. So I did my sums and seeing the ever rising costs of living, I made the decision to purchase a 3 room flat (the rebates we get as a 3roomer can be quite considerable) for me and my parent.
I then proceeded to renovate and convert my 2 bedroom into a 3bedroom flat. With the plan to rent out the extra room, when I reach the minimum period to be able to rent it out. If I choose to start a family, the extra bedroom, will come in handy.
Also, there are other ways to get loans with minimum or no interest rates but we have to plan early. Such as taking an assurance/insurance that comes with a loan scheme; I used this method to pay my COV and renovation.
In other words, we have to change our mindsets and purchase what we need than rather what we want. Be creative and flexible in how we can maximise our expenditure and living space. And always plan ahead and do our homework.
I know this may sound immoral (taking advantage of subsidies and rebates), but we have to take advantage of any govt. loopholes to squeeze every dollar we can out of them because the govt is already squeezing every dollar out of us.
i am NOT financialLEE stress @ all as lon as i aadhered to the followin:
1)no outside hawker dinner..go home boiled plain porridge (not rice) 1/2 the riceseeds used with a budget canfood( aroun $1..under $2)
2) lunch meal..depends on my adhoc job..if make money..splash a little if zero $..lunch should be under $3 incl drinks…
“Figures show 7 in 10 paid less than $30,000 (COV) in past six months”
Why did the newspaper phrase it in this way? Why did they not say that 30% of the buyers were forced to pay crazily inflated sums of more than $30,000 in order to buy themselves a flat in the past six months?
lucky my math not so bad, otherwise i would have been foold by straits times..
The HDB said it released detailed figures of COV levels for the first time because several media stories recently on ‘extremely high COVs in areas like Bishan and Queenstown…do not provide a balanced picture’.
The real picture is that high COVs occur in areas all around singapore, and as you pointed out, 30% are forced to pay high COVs. 63% managed to negotiate slightly less cut-throat COVs.
ONLY 7% managed to clinch their flats at a price close to the current valuation. These people who paid the price equal to the current valuation of the flat still ended up paying more than the price which existed a few months ago, which was drastically higher than the price 4 years ago.
At no time in history has the price behaviour been like this. To account for the abnormal behaviour of the price, the authorities deny it is due to mistakes, but due to what they call “market forces”, which are controlled entirely by the authorities. However, when you put the blame, you put it on “market forces”, not the authorities. This is important, otherwise the authorities will look very, very, very bad.
HDB :
COV prices are slowing down because Valuation catching up
anyway HDB figures got magic one even extracted from their ‘Resale Transaction’ – here (http://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp) which u think can be used to better judge or monitor ‘current’ transcation are half truth or at best 3/4 truth ..
Taklehtido7 May 2010
HDB :
COV prices are slowing down because Valuation catching up
UMM, how did you conclude that COV prices are slowing down? today’s newspaper said COV prices are going up, went up $1000, and that more and more people need to pay super high COV of minimum $30000.
Which newspaper did you read?
HDB :
relax brader .. ‘slowing down’ does not mean ‘going down’ alamak this is the 1st Qtr result from HDB reported mah:
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_509657.html
also today’s report
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_523639.html
anyway as per my post above .. can pakai or not all this data statistic released ?? the only way is to go house hunting this weekend and feel the pulse .. fyi in March i saw a 5Rm unit in Punggol (original condition with NO FLOORING not even screeding and doors for room, no lighting) sold for 20K COV
if I have a bar of gold, the world tells me the valuation is like US$1160 per ounce. and I go up to the pawn shop and tell him I want to sell him at 5% above this valuation, what do you think he will say to me?
From those straitimes links: “Preliminary estimates released by the Housing Board (HDB) yesterday showed resale HDB flat prices rose 2.7 per cent to a fresh record in the first quarter compared to the previous three months. But the rate of increase was slower”
2.7% per quarter = 10.8% per year
It’s time for us to Celebrate?
Give the Mah a Tiger!
ouch, in that straits times link, the reporter was called names for failing to understand the statistical significance of the numbers she was reporting.
this might be a symptom of being “Financially Stressed”?
ok, granted the reporter didn’t understand what is 2.7% quarter-on-quarter and how it shows the prices are still skyrocketing. but I think she should be forgiven – she’s quite junior right?
If on the other hand, their senior reporters start writing such rubbish … my god …
yeahhh White TIGER from the Zoo
or knck the bottle over his head – MAHbok Tan
‘median of $25,000 for the first quarter’
this statistic is telling.
50% of the people pay from $25,000 upwards in COV
30% pay $30,000 upwards
that means the remaining 20% pay from $25k to $30k
that’s a heck of a lot of people paying a heck of a lot of money
and it’s gotten worse since the last quarter, according to the news article.
how come the article didn’t warn that such senselessness is a Problem?
Well, most of these people voted for it in the past elections. They deserve every bit of this.
yeah, unfortunately, because of 66% of the kiasi EAST people, the rest of the country (north, west, south) has to suffer along
next time, those who vote for them should b made to pick up the tab
under $30k can’t even get me a new car. that kind of money would probably get you a “license” to own a car. despite the hefty COE, hundreds of thousands have become car owners. apparently, these “extra cash” to secure housing(COV) and cars(COE) are inconsequential to many in an affluent society which regard homes and cars are worthy acquisition.
and hence, if the people can’t afford it, they won’t.
no money don’t buy very simple
cannot buy then complain? Or sell forprofit then want buy low again, everyone also wan :D Even my grandma who is selling salted eggs
He has so much balls & guts that he dares to openly challenge the GOD of Singapore!
http://i-came-i-saw-i-solved-it.blogspot.com
My salute to him!
HDB flats are still very “affordable”! The problem is that Singaporeans are too fussy and choosy when deciding on a large purchase which will put both husband and wife in dept for 30 years.
update in yesterday’s news:
PropNex communications manager Adam Tan expects some 1,050 flats to be offered at Boon Lay Grove in Jurong West and at Floral Spring @ Yishun under the HDB’s latest new Build-To-Order (BTO) projects to be oversubscribed by at least six times each.
That’s higher than the oversubscription rate of IPOs.
I bet they’ll say unless they get maybe 60 times oversubscription, this is not real demand.
HDB flat dwellers are only “affordable” stressed to Pay And Pay with no retirement and increasingly DECREASING income or none at all JUST BECAUSE they…. THINK SO!
To Punters Action Party
“He has so much balls & guts that he dares to openly challenge the GOD of Singapore!”
At least ask him to wear a shirt lah. Make video & complain about PAP but not wearing a shirt will make him less credible or respectable.
No wonder MIW don’t waste time suing him after so many police investigations. They probably think he’s a mental patient.
@ Leong Sze Hian
THANK YOU FOR LOOKING INTO THE HEARTS OF THE POOR/NEEDY SINGAPOREANS,YOU WROTE A VERY GOOD ARTICLE
Warren Mah, son of Mah Bow Tan, Singapore’s Minister for National Development, is living the quitters life in Philadelphia, Pennsylvania at Singapore’s expense.
He is on a scholarship to the University of Pennsylvania from the Monetary Authority of Singapore.
”Are more Singaporeans financially stressed?”
PHYSICALLY AND MENTALLY “YES”
MESSAGE TO THE NEW GENERATION I SWEAR ON MY ANCESTORS GRAVE….THAT,AFTER YOUR EDUCATION PLS. ENROLL CHILDRENS IN THE MENTAL INSTITUTION.
Posters, TOC: if S’poreans are as stressed as you claim, then how come banks still not afraid to lend? And there is strong demand.
http://atans1.wordpress.com/2010/05/05/how-can-property-prices-come-down/
Are you saying that banks and S’poreans are stupid- like sub-prime borrowers and lenders.
And what abt all those S’poreans that can cash out their properties, if they prepared to migrate or move to Johor.
It’s the young and unemployed that are in a jam, not everyone.
the scholarship scheme needs to be revamp
they should not have their names on the applications
they should only be known by a serial number, so the assessing committee will not know whom that guy is
but anyway, this is how they feed their own
get every offspring into scholarship, free education on singaporean’s expense, come back and get a cushy job
being a yes man has it’s benefits
join now!!
It’s the young and unemployed that are in a jam, not everyone.
…………….
who or which bank is goin to lend you money if you are unemployed?
even ahlongsan would says..do i lookedliked braindead to you?
nation of unscrupulous housing agents
No achtung. Is nation of current unscrupulous politicians.
Roti Prata Kosong in some food court cost
$1/- these days………..and shrinking too!
The humble French loaf cost $3/- at Bread Talk & no big deal in taste too.
My stress level is to pay high prices for consumables goods like bread sold in bakeries, which is shrinking in size and bites!.
Yeap, kena from my wife for talking and talking and taking things for granted that things are always agak agak in pricing when I saw the French loaf at Bread Talk – Tampinese Branch with no price tag…………got trapped when the salegirl told me $3/- kinda RIPOFF
Deli France cost $2.40 local bakeries around $1.30 to 1.40 (large)
Best is Deli France, more original and the taste of France too.
Buying Bread can be stressful too~
The only way not to be financially stress in Singapore is to job the army. As a SAF regular, you will be paid a premium above market rate and also, you do not need to compete with foreigners for jobs. At retirement, you will be paid a lump sum.
As NSmen, you had to compete with foreigners for jobs and also, you are liable to serve NS without being paid. The makeup pay goes to your company, not to you.Worst still, you had to pay taxes to feed the army regulars.
Moreover, the SAF guarantees that as a regular, you will not be send to the frontline in times of war but will stay in backroom to direct the battles! The NSmen will be send to the frontline!
After the war, as a regular, you will be rewarded with good bonus for your contribution in defence of the nation, while those NSmen who fight to defend the country will find that their jobs had been taken away by foreign talents.
Hence, the only way to get out of financial stress in living in Singapore is to join the army!
Everything shit things in sinapore is expensive. All because the high rental imposed by the landlord. The bigger player is capitaland, and the worst thing is that they pump all the revence to China. Please let the mainland chinese to invest in their country, it is none of our business. NTUC is also going overseas to expanse its business by using our singaporean’s revence. If you are really so dam good in business, please take your own saving and go.
Our PAP approved so many foreigners to compete with local citizens for jobs which also resulting in depressing our income. So now we are all earning less and financially stressed.
NTUC is also going overseas to expanse its business by using our singaporean’s revence
…………
in the texi rental business the texi hirers ran away with our ntuc texi without payin…
in the supermarket buisness..the chinese take away our kamchye via shopliftin/whatever…
today ntuc in china is near bankrupt…
well, it’s not as though only $90 million are channeled to subsidise and help the poor. There are numerous other and community outreach schemes and various other organisations that help out. so well, the poor are not really surviving on 18 cents a day. in any case, i would like to remind that singapore has never been and will never be a welfare state like britain. how the hell are we to afford spoonfeeding the population? we need to be happy that opportunities are given, and real substantial help is given to ppl who need long term assistance. being such a small country with no resources and no internal market etc, with a government or not, and whatever government it is, do we not need to work hard just to survive? we don’t have much choice do we? we can’t have the best of both worlds, to be totally slack and carefree while maintaining one of the highest standards of living in the world? and well, regarding the foreigners thing… it’s scary that they’re fighting with us for jobs and all, but then again, to offer an alternative pov, do we not need to maintain competitive anyway? are we merely passive creatures while others take ‘our’ jobs?