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Recession, but MRA and food inflation up?

Why raise MRA and continue hawker upgrading in these bad times?

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Leong Sze Hian / Columnist

Sudden jump in Medisave Required Amount (MRA)

I refer to the article, “$18,000 required in Medisave from Jan 1” (TODAY, Dec 10).

CPF members who turn 55 and are able to meet the Minimum Sum (MS) requirement – which is $106,000 currently – will still need to set aside a sum in their Medisave Accounts when making a withdrawal. From Jan 1, the sum to be set aside will be raised from the current $14,000 to $18,000.

 

Introduced in 2004, the Medisave Required Amount (MRA) was scheduled to increase by $2,500 each year until it reaches $25,000 on Jan 1, 2013.

 

The increase of $4,000 is 60 per cent higher than the original scheduled increase of $2,500.

 

Why the sudden huge jump in the MRA? What criteria was used to determine the MRA?

 

As such quantum changes affect the amount of CPF that we can withdraw at age 55, I would like to suggest that it be subject to parliamentary debate and approval.

 

At its current rate of increase at $4,000 a year, does it mean that the MRA will be $34,000 by 2013, instead of the originally announced $25,000?

 

Since from Jan 1, 2013, the MS of $134,000 (after inflation adjustment as projected by the Longevity Insurance Committee’s Report) and the MRA must be retained at age 55, does it mean that those with less than $168,000 ($134,000 MS + $34,000 MRA) will only be able to withdraw $5,000 at 55?

 

With the recession, retrenchments, wage cuts, and high inflation, this unexpected huge increase in the MRA may affect those who turn 55 next year and in the future, as they may have less to withdraw from their CPF to help them tide over these difficult times.

 

According to the Longevity Insurance Committee’s report, 60 per cent are projected to have at least $67,000 in their CPF at age 55 in 2013.

 

So how many Singaporeans have less than the total required sum of $168,000 at age 55 in 2013?

 

Food inflation despite the recession

I refer to media reports that food prices are still continuing to rise despite the recession, and media reports about Malaysia’s Domestic Trade and Consumer Affairs Minister’s success in visiting and getting hawker stalls and hypermarkets to reduce prices to help Malaysians with high inflation and the current recession. For example, about 4,500 Indian and Indian Muslim restaurants in Malaysia this week dropped their prices, as well as several hypermarket chains.

 

I also refer to media reports that HDB will not be deferring any of its upgrading projects. However, may not one of the causes of inflation be the upgrading of hawker centres?

 

After upgrading, the total rental, service and conservancy fees (S & CC), refuse fees, etc. typically increase by more than double for the existing stallholders. For those new stalls that are put up for  tender, the rental can be 10 or 20 times more.

 

Is it any wonder, then, why food prices have gone up so much?

 

I think we may need to weigh the benefits of the policy of upgrading all hawker centres by 2010, in light of high inflation, recession and retrenchment, against affordability, given that the annualised median wage change was only about 3.2 per cent per annum from 1999 to 2008.

 

In this connection, food inflation and the overall Consumer Price Index (CPI) was 11.5 and 8.9 per cent respectively, over the last 17 months till October.

 

We may need to balance much higher rentals and prices against the need for “re-painting, [re-designing] for better ventilation, improved seating capacity and toilets”.

 

Since $4.7 billion of public construction projects have been deferred to ease inflationary pressures, why not defer the hawker centre upgrading too?

 

After all, isn’t rapidly-rising food inflation something which affects almost everyone, and thus, is more important and urgent to deal with?

 

For example, in the Bugis Albert Centre market upgrading, as less than half the original 380 stalls – 170 of them – have moved into the temporary centre, how many of the other 210 stalls have given up their  livelihood, because the increased rental and other costs that may have made their businesses no longer viable?

 

How many would give up because they would not be able to afford the $5,000 to $9,800 (monthly $312.50 to $612.50 over 16 months) for the temporary centre?

 

Some of the hawkers who moved to the temporary centre have reported a drop in daily takings by more than 40 per cent.

 

Some hawkers in upgraded hawker centres have also reported a drop in business relative to higher costs.

 

There is the argument that the hawkers would be better off after upgrading, for if the hawker centres are not upgraded, they would become more run-down and customers would patronise other food places. This may be true, but on the other hand, people may avoid them because of the higher prices or cook at home instead.

 

Will there still be affordable food (relative to the recent past), when all the remaining 54 food centres are upgraded by 2010?

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Indonesia

Miss Universe cuts ties with Indonesia chapter after harassment allegations

The Miss Universe Organization severs ties with Indonesia franchise due to harassment claims. Malaysia edition canceled.

Women allege body checks before pageant. Investigation launched. Safety prioritized.

Indonesia winner to compete in November finale. Height requirement controversy.

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WASHINGTON, UNITED STATES — The Miss Universe Organization has cut ties with its Indonesia franchise, it announced days after allegations of sexual harassment, and will cancel an upcoming Malaysia edition.

In the complaint, more than a half dozen women said all 30 finalists for Miss Universe Indonesia were unexpectedly asked to strip for a supposed body check for scars and cellulite two days before the pageant’s crowning ceremony in Jakarta.

Their lawyer said Tuesday that five of the women had their pictures taken.

“In light of what we have learned took place at Miss Universe Indonesia, it has become clear that this franchise has not lived up to our brand standards, ethics, or expectations,” the US-based Miss Universe Organization posted Saturday night on social media site X, formerly known as Twitter.

It said that it had “decided to terminate the relationship with its current franchise in Indonesia, PT Capella Swastika Karya, and its National Director, Poppy Capella.”

It thanked the contestants for their bravery in coming forward and added that “providing a safe place for women” was the organization’s priority.

Jakarta police spokesman Trunoyudo Wisnu Andiko said Tuesday that an investigation into the women’s complaint has been launched.

The Indonesia franchise also holds the license for Miss Universe Malaysia, where there will no longer be a competition this year, according to the New York-based parent organizer.

In a lengthy statement posted to Instagram, Indonesia franchise director Capella denied involvement in any body checks.

“I, as the National Director and as the owner of the Miss Universe Indonesia license, was not involved at all and have never known, ordered, requested or allowed anyone who played a role and participated in the process of organizing Miss Universe Indonesia 2023 to commit violence or sexual harassment through body checking,” she wrote.

She added that she is against “any form of violence or sexual harassment.”

The Jakarta competition was held from 29 July to 3 August to choose Indonesia’s representative to the 2023 Miss Universe contest, and was won by Fabienne Nicole Groeneveld.

Miss Universe said it would make arrangements for her to compete in the finale, scheduled for November in El Salvador.

This year’s Indonesia pageant also came under fire for announcing a “significant change in this (year’s) competition guidelines” with the elimination of its minimum height requirement after it had crowned a winner.

In its statement, the Miss Universe Organization said it wanted to “make it extremely clear that there are no measurements such as height, weight, or body dimensions required to join a Miss Universe pageant worldwide.”

— AFP

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Malaysia

A Perodua service centre in Kuantan, Malaysia went viral for its strict dress code, Perodua responds

A dress code for vehicle servicing? A Malaysian car brand’s service centre dress code signage has puzzled netizens, raising queries about the need for attire rules during a routine service.

The manufacturer responded with an official statement after a flurry of comments, seeking to clarify and apologize.

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MALAYSIA: A dress code signage positioned at a service centre belonging to a prominent Malaysian car brand has sparked bewilderment among Malaysian netizens, who question the necessity of adhering to attire guidelines for a simple vehicle servicing.

The signage explicitly delineates clothing items that are deemed unsuitable, including sleeveless tops, short skirts, abbreviated pants, and distressed jeans.

The car manufacturer swiftly found itself flooded with comments from both inquisitive and irked Malaysian netizens. This surge in online activity prompted the company to issue an official statement aimed at clarifying the situation and extending an apology.

In a post that gained significant traction on the social media platform, politician Quek Tai Seong of Pahang State, Malaysia, shared an image to Facebook on Monday (7 Aug).

The image showcased a dress code sign prominently displayed at a Perodua Service Centre in Kuantan. Within the post, Quek posed the question: “Is this dress code applicable nationwide, or is it specific to this branch?”

The signage reads, “All customers dealing with Perodua Service Kuantan 1, Semambu, are requested to dress modestly and appropriately.”

Adding visual clarity to these guidelines, the sign features illustrative graphics that explicitly outline clothing items deemed unacceptable, including sleeveless tops, short skirts, short pants, and ripped jeans.

Delineating the specifics of the dress code, the signage stipulates that male visitors are expected to don shirts accompanied by neckties, opt for long pants, and wear closed shoes.

Conversely, female visitors are advised to don long-sleeved shirts, full-length skirts, and closed-toe footwear.

Perodua’s dress code sparks online uproar

Following the rapid spread of the post, Perodua’s official Facebook page found itself inundated with comments from both intrigued and frustrated Malaysian netizens, all seeking clarifications about the newly surfaced dress code policy.

Amidst the flurry of comments, numerous incensed netizens posed pointed questions such as, “What is the rationale behind the introduction of such regulations by the management? We demand an explanation.”

Another netizen expressed their dissatisfaction, arguing against the necessity of the rule and urging Perodua to take inspiration from the practices of other 4S (Sales, Service, Spare Parts, and Survey) automotive dealerships.

A concerned Facebook user chimed in, advocating for a more lenient stance, asserting that attempting to dictate customers’ clothing choices might not be in the company’s best interest.

Someone also commented in an angry tone, “Oi what is this? Going there for car service, not interview or working, right.”

As the discourse unfolded, it became evident that while some inquiries carried genuine weight, others chose to inject humor into the situation, playfully remarking, “If I wanted to buy a Myvi, I should buy or rent a formal attire first.”

“I sell economy rice at a hawker centre, I have never worn a long sleeve shirt and a tie… I guess I will not buy a Perodua car then.”

“I guess they will not serve those who wear short pants.”

Perodua addresses dress code controversy

As reported by Chinese media outlet Sin Chew Daily News, the manager of Kuantan’s Perodua Service Centre had acknowledged that the images on the dress code signage were misleading.

In response, the manager divulged that discussions had transpired with the head office, leading to the prompt removal of the signage to prevent any further misconceptions.

The manager clarifies, “We do encourage visitors to adhere to the dress etiquette, but we won’t go to the extent of restricting their choice of attire.”

He also revealed that currently, no complaints have been directly received from the public.

However, feedback from certain customers was relayed through Perodua’s agents.

Perodua also released an official statement by chief operating officer JK Rozman Jaffar on Wednesday (9 Aug) regarding the dress code on their official Facebook page.

The statement stated the dress code etiquette is not aligned with their official guidelines and they are currently conducting an official investigation on the matter followed by corrective measures to avoid the same incident from happening.

Perodua also extends its apologies for any inconvenience caused.

 

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