Economic News

[Frodo]

Ya. That's why I said unless one downgrades (buy smaller sized flat or move to the outlying areas in SG), all those "profits" mean nothing as newer flats cost a lot more than what those profits can cover. Don't need to even talk about buying the crazy, expensive condos in SG.

If one thinks hard enough, he can see that the government has cunningly and cleverly used HDB flats to keep lots of money circulating within the country.

At one point, especially after 2005, the govt imported lots more immigrants and gave them citizenship to buy flats to compete with locally born Singaporeans. Not only that, they restricted the building of BTO flats. Demand rose, supply dropped, naturally prices started to climb up.

Instead of solving the big problem, they allowed private developers to design, build, and price HDB flats at unjustified prices. How could they have allowed profit-making private companies to build PUBLIC flats?!! This of course further increased the flat prices even more than necessary. Many of such flats are already hitting close to or exceed S$1mil! So like an eco-system, all other flat prices went up accordingly.

Although some think Wow, shiok, the PAP is helping me make money! But that profit is not realized until you sell your flat. But you can't just sell and live in the streets. When you buy another flat, your profit is all thrown to the new property. You got to further take up new HDB loan, be in debt, so govt earns more money from you. When the younger ones buy new BTO flats, they also have to take up loans, prices of flats have increased a lot, so govt makes money from here also.

So end result is, owners can't enjoy or see the profits. The money just gets circulated around but the one who gets to enjoy it is none other than the govt. No wonder they can pay themselves S$10,000 a day in salary.

Cunning huh this PAP?

That's why the days of making money from HDB are very much over for many of us born after the 70s....those who born after that period who can make big money from selling HDBs are probably those who are quite well off (e.g. blessed with rich dads) who can already buy at good locations and then resell at even better prices.

 

[sgcount]

That's why the days of making money from HDB are very much over for many of us born after the 70s....those who born after that period who can make big money from selling HDBs are probably those who are quite well off (e.g. blessed with rich dads) who can already buy at good locations and then resell at even better prices.

Like xebay11 with his rich dad? Haha...

I don't mind if we can't make big money from our HDB flats. But the govt got to at least control the pricing better so that it matches the kind of (pathetic) salaries most commoners are earning now.

 

[Frodo]

Like xebay11 with his rich dad? Haha...

I don't mind if we can't make big money from our HDB flats. But the govt got to at least control the pricing better so that it matches the kind of (pathetic) salaries most commoners are earning now.

SG govt will always ensure that HDB remain "affordable" even if it means citizens are slaves to debts for life...

 

[rotikok]

I even unluckier than you lor.... I still have years to pay off my HDB flat which I am living in and not making rental profits like you. :( I bought it after 2005 where prices all rocketed up by a lot. Some more you got big house in Johor to sleep in, and a condo in future as another holiday home.

I am a pauper. I should have been born 40 years ago.... :(

Think about it, 20-40k a hdb unit, that will be how many years ago? 40 yrs ago, what is the average income back then? That time mata kia wearing short pants earn 500-600 a month? So if you do not take inflation and increase in income into consideration, you would not think HDB can be these dirt cheap back then. Whenever a place have robust economic growth in future, price will only get up and up.

But im looking forward to live in the future, the day where automation and robotic will be able to do most of the most complicated tasks, rendering human being working for a living obsolete.... eventually government will give pension every month for everyone to use up those productivity produce by A.I. Problem is, human population will burst thru the roofs by then.

 

[xebay11]

Like xebay11 with his rich dad? Haha...

I don't mind if we can't make big money from our HDB flats. But the govt got to at least control the pricing better so that it matches the kind of (pathetic) salaries most commoners are earning now.

These days it's the government that is making money from HDB, fewer SERs and building more and more ulu places.

 

[Frodo]

These days it's the government that is making money from HDB, fewer SERs and building more and more ulu places.

So more the case that now, if you are lucky you get to make 6 digit profit from sales of HDB...otherwise don't hope too much?

 

[snowbird]

As inspiring as this example may be, and good for them, it is of little consolation to those not born in the early era where people at that time bought their HDBs at $20-$40K which are also big. These people are in their 60s or 70s, but what about those in their late 30s or 40s?

Then they may have to wait till they are in their 60s to find out, you'll never know.
Every generation under different circumstances will have a different set of fortune or misfortune waiting for them, and sometimes you may only know when you arrive there.

But still the point is, a generation of people had the fortune of sitting "on a pile of gold", in your own words.
They can choose to liquidate that assets anytime they need that "pile of gold" for what ever purpose, that couple I mentioned and also thousands of others did just that.
And if they don't, then their children will inherit that "pile of gold" on their passing.
This is still some fortune you'll never find elsewhere in the world!

 

[snowbird]

Ya. That's why I said unless one downgrades (buy smaller sized flat or move to the outlying areas in SG), all those "profits" mean nothing as newer flats cost a lot more than what those profits can cover. Don't need to even talk about buying the crazy, expensive condos in SG.

If one thinks hard enough, he can see that the government has cunningly and cleverly used HDB flats to keep lots of money circulating within the country.
That's the power of economy!

Many people associate "downgrade" as moving to some smaller low cost units in some far outlying areas and enjoying a lower quality of life.
Then they are wrong.
I've been inside a recently built studio apartment and quite surprised to see the quality of finishing (yes, better than some JB condos) and the location which is near to amenities - bus stop, MRT, shops, polyclinic, etc.
Like that couple I mentioned, they were quiet pleased with their purchase, in fact the location is even more convenient than their old apartment.

 

[winners]

Then they may have to wait till they are in their 60s to find out, you'll never know.
Every generation under different circumstances will have a different set of fortune or misfortune waiting for them, and sometimes you may only know when you arrive there.

But still the point is, a generation of people had the fortune of sitting "on a pile of gold", in your own words.
They can choose to liquidate that assets anytime they need that "pile of gold" for what ever purpose, that couple I mentioned and also thousands of others did just that.
And if they don't, then their children will inherit that "pile of gold" on their passing.
This is still some fortune you'll never find elsewhere in the world!

In my opinion, the way the government had plan it out is very practical. When the 2 old folks will come to an old age, it makes sense to downgrade and continue to live the same lifestyle with the profits gained from the downgrading. Nowadays there's even the 60-year lease new studio units which will suit such requirement very well and with built-in facilities specifically dedicated for elderly folks. Even if this is not enough, there's also the lease buyback scheme to fall back on if necessary. In this way, they don't have to depend on their children for support and still be able to live respectably and comfortably till their death, and most importantly, not being a burden to their children.

Of course, some will say that there's nothing left to bequeath to their children. But, children nowadays are mostly independent and also many won't even want to take care of the old folks. So, let them earn for their own survival and only bequeath to them what's left (if any) upon the death of the remaining parent. Besides, if the distribution will be unequal, it will only lead to more disputes between the siblings. Eventually, their dead parents will be cursed for being unfair and showing favoritism instead of being gratified.

 

[snowbird]

Banks’ profits likely to be hit by sour loans from Oil & Gas sector.

Malaysian lenders are bracing for a hit to profits this year, as they bump up provisions for sour loans to the local oil and gas (O&G) services sector that has been battered by the slump in energy prices and cutbacks in projects.

http://www.thestar.com.my/business/business-news/2016/09/27/banks-bump-up-provisions/

 

[snowbird]

DRB-Hicom to sell as much as 51% stake in Proton

Finally, the national car which had always been Dr M's pride, may soon become French or Japanese if the sales proposal succeeds.
Offering 51% stake and become a minor shareholder actually is no more equal partnership, its also giving up voting rights.

http://www.thestar.com.my/business/...com-to-sell-as-much-as-51pct-stake-in-proton/

 

[Tekkun]

DRB-Hicom to sell as much as 51% stake in Proton

Finally, the national car which had always been Dr M's pride, may soon become French or Japanese if the sales proposal succeeds.
Offering 51% stake and become a minor shareholder actually is no more equal partnership, its also giving up voting rights.

http://www.thestar.com.my/business/...com-to-sell-as-much-as-51pct-stake-in-proton/

Proton would have been sold long ago to VW if not for Mahathir. Things do move fast when he is no longer the Chairman of Proton.
When and if new management come aboard, get rid of the cronies and protected vendors of DRB Hicom, get rid of the unions and change the work culture. And no politics. Then only Proton has a future. The only attractiveness of Proton is not its cars but the manufacturing facility and ready access to Asean market.

 

[ECboy]

Proton would have been sold long ago to VW if not for Mahathir. Things do move fast when he is no longer the Chairman of Proton.
When and if new management come aboard, get rid of the cronies and protected vendors of DRB Hicom, get rid of the unions and change the work culture. And no politics. Then only Proton has a future. The only attractiveness of Proton is not its cars but the manufacturing facility and ready access to Asean market.

I think if you survey all citizens of Malaysia, probably 90% of them would happy with the sale.

 

[jasonjst]

I think if you survey all citizens of Malaysia, probably 90% of them would happy with the sale.

Singapore also not bad got 70% very happy citizens.

 

[Tekkun]

Singapore also not bad got 70% very happy citizens.

Yesterday Proton launched the new Saga model. Very nice model and cheap at RM 39k. Then someone at corporate level told me there are not enough ready cars for the showrooms. This Proton unique style.

 

[snowbird]

Proton would have been sold long ago to VW if not for Mahathir. Things do move fast when he is no longer the Chairman of Proton.
When and if new management come aboard, get rid of the cronies and protected vendors of DRB Hicom, get rid of the unions and change the work culture. And no politics. Then only Proton has a future. The only attractiveness of Proton is not its cars but the manufacturing facility and ready access to Asean market.

But earlier on you sang an entirely different tune.
You said that although the company was heavily subsidised with rakyat's money, thousands in turn got employment, a happy and brilliant (opposite of stupid like some people) outcome.
And yes, once this company become Japanese or French, expect drastic retrenchment all the way from top management overhaul all the way to redundant factory workers and of cos all the useless cronies, lackeys, and political patrons.

 

[Tekkun]

But earlier on you sang an entirely different tune.
You said that although the company was heavily subsidised with rakyat's money, thousands in turn got employment, a happy and brilliant (opposite of stupid like some people) outcome.
And yes, once this company become Japanese or French, expect drastic retrenchment all the way from top management overhaul all the way to redundant factory workers and of cos all the useless cronies, lackeys, and political patrons.

Who told you I am talking about Proton only?
And it is true workers are employed even though heavily subsidised. If the company closed down, thousands would lose their jobs. It is the bosses who got rich, not the workers. They should not be penalised. It the the vendors, cronies or not that need to change. Their approach need to change as well.

Apart from Proton, Perodua, Honda, Toyota, Naza are all here. And they are a different breed altogether.

 

[Tekkun]

Just as we thought Iskandar properties are risky, this one even riskier.
I think only Fixed Deposit are the sure way of keeping money.

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After Swiber defaulted payment on its bonds and filed for liquidation, it is now Rickmers.

Over 50 note holders who together hold $26m worth want principal plus interest back

More trouble has struck financially-embattled container ship operator Rickmers Maritime, which wants bond holders to accept payouts far less than they invested.

Now a group of retirees, businessmen and others who have each sunk $250,000 or more into the bonds issued by the trust are demanding to get their principal back in full, with interest, immediately. They are trying to do this by exercising a so-called "acceleration" clause in the bond contract.

http://www.straitstimes.com/business/rickmers-note-holders-join-forces-to-get-payment

 

[Manhattan]

Fixed deposit suffers from depreciation of the money and risk of bank bankrupt because they had too much bad debt.

Safest way is to spend the money, current value fully realised and enjoyed.

 

[jasonjst]

Fixed deposit suffers from depreciation of the money and risk of bank bankrupt because they had too much bad debt.

Safest way is to spend the money, current value fully realised and enjoyed.

Buy free hold property and keep Xmeimei , fully realized and enjoyed .