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Migration: The Singapore Class divide

neddy

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Asset
Is this why you have forummers (like Redbull313, shockshiok) bashing Australia? They are actually trying to deflect their ill-gotten wealth in Singapore by switching the readers attention.

The reason why shockshiok called Singaporeans in Australia "subprime" is because those who go there are self-made men and women, whereas those who use Singapore taxpayers money to enrich thsemselves are "prime"
- you get it. It is the rich-poor divide.

No wonder you have Redbull313 trying to make Aussies jealous. He is either Tan Yong Soon or another Tan Yong Soon


It's a bad time in Singapore to flaunt your riches, especially if you're a high government official. By Seah Chiang Nee.
Jan 10, 2009


A GOVERNMENT elite has stirred ripples by talking of his expensive cooking lessons in France, revealing how hard times are deepening class differences in Singapore.

Inadvertently creating controversy was the permanent secretary at the Environment and Water Resources Ministry, one of the highest ranking civil servants.

Tan Yong Soon had related how he had spent S$46,000 for himself, his wife and son for a five-day trip to learn fine French cooking.

In ordinary times, this leisurely – but rather insensitive – account would not have amounted to anything much but these days are, of course, far from normal.

Two factors invited criticism to flare.

First, he was seen as flaunting wealth, obtained from his high pay, at a time when Singapore is suffering one of its worst slumps in history.

Many thousands of workers are still losing jobs or suffering wage cuts.

And, secondly, government leaders are accused of being hugely overpaid, as a result of which some are no longer able to relate to the common people.

Tan was also accused of “boasting” about his elitist background when he wrote that his wife was “a senior investment counsellor at a bank” and his son, a soon-to-be student at America’s prestigious Brown University.

“Taking five weeks’ leave from work is not as difficult as one thinks,” Tan said.

“Most times, when you are at the top, you think you are indispensable. But if you are a good leader who has built up a good team, it is possible to go away for five weeks or even longer.”

Singaporeans were largely unimpressed. Some were angry. His fling at France’s prestigious Le Cordon Bleu in the face of rising poverty is the latest example of how out of tune some of Singapore’s well-paid elites are with heartland realities.

About 20% of affluent Singapore’s population lives in poverty with welfare payout to the poorest of the lot limited to a mere S$290 (RM694) a month.

When a government backbencher wanted to have it increased, a Cabinet minister refused, demanding: “How much do you want?”

Many Singaporeans were already unhappy with the multi-million dollar salaries paid to Cabinet ministers and top civil servants even in happier times.

(Despite a recent cut of up to 19%, the government here remains, by far, the highest paid in the world.)

The pay issue remains very controversial and contributes to the class division in society, a them-verses-us mentality that has apparently sharpened as a result of the economic crisis.

The whole episode has shown how the class – and social – divide is widening in high-tech Singapore.

The controversy over Tan’s trip has political implications for a government that is pondering over whether or not to call for a snap general election, which is not due until 2010-11.

In other developed countries from Britain to Japan, it would not have any impact since it involves a civil servant, not a political leader.

But the system is very different in Singapore, where the line separating the two hardly exists.

The Chinese characters “zeng fu” are used to describe the political leadership as well as the civil service.

Some questioned why Tan’s choice of spending his own wealth should be
the public’s business – but not many are buying into it.

Established blogger Redbean articulated: “Tan is no ordinary, rich Singaporean. He is a senior civil servant ... and part of the governing elite.

“(He) should be seen as one who would be able to empathise with ordinary Singaporeans who are going through tough times ... (when) the Prime Minister is preparing the people for some belt-tightening and ‘bitter medicine’.”

Besides, if Tan had wished he should have spent his money at home to help the troubled economy rather than abroad, some believed.

Tan’s is by no means the only example of elitist snobbery, nor the worse.

A bigger controversy flared up four years ago when Wee Shu Min, the teenage daughter of a Member of Parliament, came across the blog of a Singaporean who wrote that he was worried about losing his job.

She called Derek Wee “one of many wretched, under-motivated, over-assuming leeches in our country.

“If you’re not good enough, life will kick you in the balls ... Our society is, I quote, ‘far too survival of fittest’,” said Shu Min, who hailed from the elite Raffles Junior College.

“... Unless you are an arm-twisting commie bully, which, given your whiny, middle-class, under-educated penchant, I doubt,” she added before signing off with “please, get out of my elite uncaring face”.

The girl was flamed by hundreds of Singaporeans, but when her father Wee Siew Kim – an MP in Prime Minister Lee Hsien Loong’s constituency – told a newspaper that “her basic point is reasonable”, the row moved well beyond blogosphere.

A news agency, in reporting this, said: “The episode highlighted a deep rift in Singapore society and was an embarrassment for the ruling People’s Action Party and PM Lee.”

Raffles JC, which has produced several state leaders, had another brush with student snobbishness.

When a student found that a Raffles girl was dating a boy from a lower-achieving neighbourhood school, he hit out at him and had a message for lower-ranking students everywhere.

“Quit trying to climb the social ladder by dating students from top schools.”

There are signs the class distinction is getting into some young minds.

A reporter recounted how her friend was shaken when her young daughter came home one day and mentioned in passing that poor people were “stupid, obviously”.

(The article was first published in The Star, Malaysia).
 
Last edited:

Satan

Alfrescian
Loyal
Is this why you have forummers (like Redbull313, shockshiok) bashing Australia? They are actually trying to deflect their ill-gotten wealth in Singapore by switching the readers attention.

The reason why shockshiok called Singaporeans in Australia "subprime" is because those who go there are self-made men and women, whereas those who use Singapore taxpayers money to enrich thsemselves are "prime"
- you get it. It is the rich-poor divide.

No wonder you have Redbull313 trying to make Aussies jealous. He is either Tan Yong Soon or another Tan Yong Soon

.

He is neither. They are all the same loser cockroach hired by the pappies because of the high emigration from Singapore. The pappies are so insecured about Singaporeans migrating and withdrawing their CPF so has engaged this cockroach to scare Sinkees contemplating migration. His scare techiniques are so childish and ridiculous but knowing Sinkees as you do where they are so used to just hearing the rosy news from the 154th and any negative news about even a mouse in a home signifies the end of the world, this cockroach may have made some progress after all. :cool:
 

axe168

Alfrescian
Loyal
Is this why you have forummers (like Redbull313, shockshiok) bashing Australia? They are actually trying to deflect their ill-gotten wealth in Singapore by switching the readers attention.

The reason why shockshiok called Singaporeans in Australia "subprime" is because those who go there are self-made men and women, whereas those who use Singapore taxpayers money to enrich thsemselves are "prime"
- you get it. It is the rich-poor divide.

No wonder you have Redbull313 trying to make Aussies jealous. He is either Tan Yong Soon or another Tan Yong Soon

I agree.. and I suggest in order to draw a clear line btw the govt and political party. there should be a "change in leadership"... plus "external audit"... and make every mother's son accountable.. Be it a minor Mas Salamat escape (no imminent danger :p) or highly defamatory Mr Brown's jokes (highly dangerous !)... :biggrin:
 

neddy

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Singaporeans put so much in CPF and get back so little?


http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_323961.html?vgnmr=1
Jan 9, 2009
Pension & retirement income
S'poreans ranked lowest
SINGAPOREANS are at the bottom of a ranking of retirement income from pensions in the Asia-Pacific region, says the Organisation for Economic Cooperation and Development (OECD).

And this is true at all income levels, according to the study, which covered 19 locations including Hong Kong, Taipei and Japan, The Business Times reported on Friday.

The Pensions at a Glance study, which also involved the World Bank, found that Singapore's average gross replacement rate - the value of the pension as a percentage of earnings when working - is just 13.1 per cent.

Taipei has the highest gross replacement rate of 70 per cent, the report said.

'This means that the gross pension income for average earners in Taipei is over two-thirds of their previous earnings level, whereas pensioners in Singapore receive less than one-seventh the amount of their earnings,' says the study.

Singapore's pension is provided by the Central Provident Fund (CPF).

'The relatively low replacement rate for Singapore is because the calculations only consider the earmarked retirement account,' says the study. 'If an individual were to put the general account towards retirement-income provision as well, then the replacement rate would be 82 per cent.'

It points out that it would be foolish to say that one Singaporean who withdrew from the CPF to buy a house is worse off than another who built up a retirement income and then had to use some of it to pay for housing.

'Nonetheless, there is a risk that older people find themselves asset-rich and income-poor in retirement and facing difficulty in unlocking the value of their housing assets to pay for essentials,' the study says.

Replacement rates - the most familiar indicator for pension analysts - are not the only factor governments are concerned with. They also need to measure the value of the overall pension promise.

'This is measured by the indicator of pension wealth which takes life expectancy into account,' the study says.

Again, Singapore has the lowest measurement - a retiree's pension here is worth just an average 2.2 times their earnings at retirement. The figure for China is 21.2 times - the highest in the region.
 

neddy

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The statement below is the writer sucking up to the PAP govt. It does not address the issue of retirement account funded solely by people who get a chance to work, it also never address the high property prices in Singapore.

'The relatively low replacement rate for Singapore is because the calculations only consider the earmarked retirement account,' says the study. 'If an individual were to put the general account towards retirement-income provision as well, then the replacement rate would be 82 per cent.'

It points out that it would be foolish to say that one Singaporean who withdrew from the CPF to buy a house is worse off than another who built up a retirement income and then had to use some of it to pay for housing.
 

axe168

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Loyal
The statement below is the writer sucking up to the PAP govt. It does not address the issue of retirement account funded solely by people who get a chance to work, it also never address the high property prices in Singapore.

'The relatively low replacement rate for Singapore is because the calculations only consider the earmarked retirement account,' says the study. 'If an individual were to put the general account towards retirement-income provision as well, then the replacement rate would be 82 per cent.'

It points out that it would be foolish to say that one Singaporean who withdrew from the CPF to buy a house is worse off than another who built up a retirement income and then had to use some of it to pay for housing.

I have noticed the difficulty in retirement many years back !.. You dont need 6 sense to find out... As a ex-citizen, I discovered the "never ending paying" process... ie ERPs, COE, TV License, Hm Parking.. To add to the wounds, politicians/govt simply charge $$!@#$%.. if they cant find any solutions.. one good example ERPs.

Anyway, after a careful consideration, I have decided to either change the world (eliminate poverty) or change my environment... Gues which i choose :smile: hehee
 

neddy

Alfrescian (Inf)
Asset
I have noticed the difficulty in retirement many years back !.. You dont need 6 sense to find out... As a ex-citizen, I discovered the "never ending paying" process... ie ERPs, COE, TV License, Hm Parking.. To add to the wounds, politicians/govt simply charge $$!@#$%.. if they cant find any solutions.. one good example ERPs.

Anyway, after a careful consideration, I have decided to either change the world (eliminate poverty) or change my environment... Gues which i choose :smile: hehee

For an island the size of Metropolitan Perth, Singapore is collecting a lot of hidden taxes.
Australia has studied Singapore's scheme of using Super to pay for property - they concluded that it is open to abuse.
Instead, they would rather allow Super to be withdrawn for hardship cases - this is geniune help for the people using their own Super savings.

Singapore? a "Hard" act to follow. :biggrin:
 

neddy

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Asset
Singaporeans - Fighting the slump
Take shorter showers, eat less meat: Singapore’s mantra to fight slump. Bloomberg
Jan 18, 2009


Until a few months ago, Amit Singh dreamed of buying a car. Now, with S$75,000 in the bank, the lawyer is holding back, saying he’ll continue to make the one-hour commute to work on the Singapore subway.

“In these bad times, the buzzword is save, not spend,” says Singh, 34. “It’s not the right economic climate to be lavish or to have a luxurious lifestyle.”

Singapore is asking its citizens, the world’s third- wealthiest adjusted for purchasing power, to be prudent as analysts predict the worst economic slump in the nation’s 43-year history.


In speeches, pamphlets and ads, the government is advising people to switch to cheaper frozen meats, take shorter showers and skip the top-of-the-line mobile phone.

The island’s strategy contrasts with that of other countries such as Japan and Taiwan, which are trying to boost consumer spending to spur economic growth as exports falter.

Singapore, whose 4.8m population is one of Asia’s smallest, doesn’t have a big enough home market to make up for falling sales overseas, so officials “are not even going to try” to tell people to spend more, says Vishnu Varathan, an economist at Forecast Singapore Pte.

“There’s no way the domestic economy can make up for the slack in the external sector,” he says. The message “is to bear with pay cuts and live frugally.”

The government is preparing people for dwindling incomes as the nation’s fourth recession in a decade forces companies including lender DBS Group Holdings Ltd, manufacturer Stats Chippac Ltd and state-owned investment company Temasek Holdings Pte. to fire workers or trim salaries.

Singapore last year unveiled more than S$5.4b in cash payouts, utility rebates and special funds, or S$1,700 for each of the nation’s 3.2m citizens, to help the poor cope with rising food and energy prices.

Officials say people also need to help themselves during the economic crisis.

If everyone depends on the government, “we’ll weaken ourselves as a society,” Prime Minister Lee Hsien Loong said on Jan 11, according to the island’s main English newspaper, the Straits Times. “We’ll cultivate a sense of reliance.” In the other words, get rid of ineffective PAP.

The World Bank predicts Singapore’s $161b economy will be East Asia’s worst performer this year.

The government forecasts it may shrink as much as 2%, after expanding 1.5% in 2008 and 7.7% in 2007.

Kit Wei Zheng, an economist at Citigroup Inc. in Singapore, says the contraction might be as much as 2.8%—the most severe since Singapore gained independence in 1965.

The unemployment rate may more than double to 5% from 2.2% in September 2008, says Leong Wai Ho, a regional economist at Barclays Capital in Singapore.

More than 30,000 jobs may be lost, he says, after about 400,000 new positions were created in the past two years.

That could boost the default rate on mortgages for government-built apartments, which house 84% of Singaporeans. The rate has risen to 8% from 5% in 2003.

Governments elsewhere in Asia are encouraging their more- sizeable populations to spend to counter the deepening global recession.

Taiwan extended the New Year’s holiday an extra day and is scheduled to distribute NT$3,600 ($108) shopping vouchers to citizens on Jan 18.

Japanese Prime Minister Taro Aso has pledged to give households 2 trillion yen ($23 billion) in handouts.

That may not work for Singapore, where private consumption accounted for 38 percent of gross domestic product in 2006, compared with more than half in Australia, Hong Kong, South Korea and Japan, according to the World Bank.

Singapore’s leaders have traditionally preached restraint amid economic difficulties.

In 2001, when the economy contracted 2.2%, the government refused to cap electricity prices and instead gave utility rebates to help the poor and encourage people to “save and not over-consume,” then-Prime Minister Goh Chok Tong said in an August 2001 speech.

The government’s latest campaign began last year when prices of food essentials including rice and cooking oil surged.

As inflation soared to a 26-year high of 7.5%, Prime Minister Lee urged people to switch to frozen meats and in-house brands of supermarket products, which are typically cheaper....

http://www.financialexpress.com/new...meat-Singapores-mantra-to-fight-slump/411693/
 

axe168

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Singaporeans - Fighting the slump
Take shorter showers, eat less meat: Singapore’s mantra to fight slump. Bloomberg
Jan 18, 2009

PAP words is for laymen and fools to follow... Compliance and obedience hv already been pre-fabricated into every SG minds since school and NS time, thankfully quitters have diff mindset :smile: Elite quitters will find their way "OUT", yet not compromising on their lifestyle, enjoyment and growth..
 

neddy

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SINGAPORE
Jobs-Riding out the storm
Decline of the middle class: Its extent will depend on the extent of job losses in 2009. By Seah Chiang Nee
Jan 3, 2009


(Synopsis - Job opportunities, or the lack of it, will be the biggest worry for Singaporeans this year and probably a little beyond.)

Among Singaporeans celebrating the New Year with fireworks and parties this week there were a few heavy hearts with a nagging concern – over jobs.

And it’s more than just a few.

In fact, the whole population is focused on how it can survive a job tsunami with many companies likely to reduce staff and salaries to meet the economic crisis.

Some companies will, of course, continue to hire, but at a vastly reduced number, with good pay rises confined only to a few positions that contribute most to the bottom line.

Over all, the job market will be very bleak. It will be the biggest worry for Singaporeans in 2009 and probably a little beyond.

Not just Singaporeans, but the 1.2m foreign workers here, too – as well as millions of people in Asia who have traditionally looked upon this affluent city as a source of work.

They are returning home by the thousands.

The bigger they are, the harder they fall; this saying can be aptly attributed to Singapore’s ability to create jobs in the past few decades.

More than 1.6m foreigners (including permanent residents) have flocked here to work because demand had outstripped supply.

Thanks to the economic crisis, the trend has reversed, at least for now. In the past year, the job excess has turned into a deficit.

In December, 2007, there were 134 new jobs for every 100 applicants, By June last year, this had fallen to 89 and by September to 81.

As a result, retrenchment has become steeper, with foreigners bearing the brunt.
Thousands of contract workers are leaving for home.

Analysts estimated that 10,000 workers lost their jobs in 2008, and employment may drop by a substantial 30,000-40,000 this year, a far higher figure than the last downturn in 2001.

A job is far more important here than elsewhere in the larger neighbourhood.

If you’re unemployed in Indonesia or Thailand, you can move to the countryside and live off the land, maybe poorer but surviving.

A jobless Singaporean, who has little or no financial safety net, has no hinterland to escape to. He can’t grow food in his overcrowded housing estate.

What makes it tougher is the fact that the new generation of Singaporeans is better-educated and highly demanding.

I wrote some 20 years ago about the possibility of university graduates one day becoming unemployed in large numbers. It is now coming true.

Employment is not only shrinking, its face is also changing. A friend of mine joked recently that with this recession, “we will all end up either as teachers or civil servants, the only safe jobs”.

This is, of course, not possible but it’s getting closer to it.

A recent weblog quoted the Ministry of Manpower: “One out of five jobs available is in education and public administration, according to the latest survey.

“Fewer workers are needed in the construction and manufacturing industries.”

Once a taxi driver I met surprised me by offering me advice on several stocks. He turned out to be a bank executive who had just lost his job.

One of my friends, a professional photographer, was an electronic engineer. There are, of course, many others.

My own son who read biology at Michigan University now works as a social worker among dysfunctional families.

Many graduates are working in fields unrelated to their training. This is the result of globalisation and shifting careers. The recession is hastening it.

Related to the crisis is the systematic reduction of salaries as a means of preventing retrenchment.

The latest was Singapore Airlines, one of the world’s largest, which may soon ask its pilots from its cargo arm to take unpaid leave in a bid to cut costs and reduce capacity.

More Singaporeans in the middle and lower class are already working on income that has not changed for 10 years.

The hardest hit of job-seekers will be the fresh batch of university graduates, who are forced to lower their expectations in life.

Some come from families whose market investments have been too badly decimated to be able to help them.

This could result in something the government doesn’t want to see – a greater outflow of local talent in search of work abroad.

Some are moving to the Gulf States and others to China and India.

A fresh graduate in mechanical engineering, Nicholas Ang, said he had, like many in his cohort, hankered for a banking job.

But with the economy, especially banking, in such bad shape, Ang told a reporter, “if it gets really bad, I am not going to be choosy. I am more than willing to go wherever the jobs are”.

The government has promised a rescue package for needy unemployed and small companies which it will unveil in its 2009 budget this month.

Rising unemployment will wipe out more of Singapore’s middle class. The worst affected are married Singaporeans.

My wife encountered a stranger at a petrol kiosk provision shop, who volunteered the information that he lost his job two months ago.

“I have sent out numerous application letters and was told each time to wait for a reply,” he said. He is still waiting.

Another victim, Sofie told STOMP (Singapore’s top social networking and citizen media website) that she had been sending out resumes every day for the past five months since losing her job. Some companies told her that at 46 she was too old.

“I am tired and desperate,” she said.

(This article was published in The Star on Jan 3, 2009)
 

fishbuff

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Loyal
...The reason why shockshiok called Singaporeans in Australia "subprime" is because those who go there are self-made men and women, whereas those who use Singapore taxpayers money to enrich thsemselves are "prime"
- you get it. It is the rich-poor divide.

No wonder you have Redbull313 trying to make Aussies jealous. He is either Tan Yong Soon or another Tan Yong Soon

fyi. redbull did mentioned in the previous sammyboymod forum that he gained his green card thru' his father who married an american. he didnt make it there by his own merits.
 

neddy

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Lee Kuan Yew caught lying.

Anyone got evidence of him lying?

Lee Kuan Yew Lies

Lee Kuan Yew warns of army intervention
As last resort, if an opposition government plunders hard-earned reserves. Possible?
By Seah Chiang Nee., litterspeck.com
Sep 24, 2006


AS he ages in the midst of an undercurrent of political pressures, Lee Kuan Yew seems to become more concerned about the safety of Singapore's US120bil (RM454.4bil) reserves accumulated over four decades.

His worry is two-fold; firstly, the rising popularity of opposition that he said could result in 'freak' defeat for his ruling People's Action Party (PAP), and secondly, corrupt opposition leaders squandering the nation's wealth.

He had earlier warned that PAP must not take for granted that it will always win.

Lee had valid reasons to worry. There's a political wind blowing across the land and politics may be entering - helped by the Internet - a less predictable era.

In the May election, the PAP's popular vote fell from 75.3 to 66.6% with no sign of reversing.

If it erodes further, more Singaporeans will hop on to the (currently weak) opposition's bandwagon.

The new recruits could include the bright and honest, but also crooks and self-serving people with an eye on the nation's riches.

In an interview with a Harvard University professor last week he hinted that in case of a plunder - and the elected president could not or would not prevent it - then "in two or three years" the army would step in to stop it.

His talk of possible military intervention - no mention of coup - caused a stir among Singaporeans.

Ironically the warning came only three days before the military coup in Thailand.

Singapore is one of the richest countries when it comes to reserves per capita. Lee once promised to 'rise up from the grave' if future leaders lead it into chaos.

Before he resigned as PM in 1990, Lee created 'a second key' to safeguard the reserves, an elected presidency that could stop the Cabinet of the day from spending money it had not accumulated during its own five-year tenure.

No government could dig into funds earned by previous governments without approval from a public referendum. :biggrin: :biggrin: :biggrin: Harry, you are a joker. How many PAP governments have been formed since 1965 :biggrin: :biggrin: :biggrin:

But this is the first time Lee has spoken of 'military intervention' if the elected presidency was absent or captured by the opposition, to save the nation's billions.

Educated Singaporeans, however, have often discussed the prospect of a military coup here if PAP loses an election, not to protect national assets. Lee probably sees the two as connected.

In 1984 when the PAP suffered a 12.4% vote decline - a mini-crisis to him in those days - a small think-tank committee set up by the newspaper that I edited had discussed this possibility.

Lee had angrily accused young voters of being ungrateful when so many turned against a party that did 'so much for them'.

We discussed what would happen if something worse were to happen like losing an election: Would Lee stage a military coup to stay in power? Almost to a person, we dismissed it for several reasons.

Firstly, the United States, Singapore's powerful trading partner, would come down hard on it, foreign investors could dry up but more crucially, Singapore's army and people - unlike others - would strongly oppose it.

It would even split the PAP. In short Singapore could not survive the impact.

Besides, the full-time army is a small one. Singapore's frontline soldiers are overwhelmingly made up of 'reservists'.

This would have meant that if the country voted out the PAP, these soldiers - sons, brothers and husbands - were likely to have voted along with it, so a coup against the elected leaders was far-fetched.

The army here is vastly different from the Thais, Vietnamese, Filipinos and other coup-marked countries. Its value comes from its colonial British 'no-politics' traditions.

So how seriously are Singaporeans taking Lee's coup warning? Most dismiss it as next to impossible.

If it wasn't possible 20 years ago, it is even less so today as the society has become more sophisticated.

"It will be a sad day if it is attempted. One coup will lead to another and start a culture," said a businessman.

Besides any takeover general would probably enjoy power too much to want to return to the barracks."

Nothing could then prevent them from plundering the reserves themselves, the very thing Lee wanted to stop.

So far none of the other PAP leaders or rank-and-file has echoed Lee's sentiments, so it is far from being a party position. I don't think it was seriously discussed.

To put it into perspective, Lee did not condone a military takeover but probably mentioned it as a last option if everything else failed to stop a corrupt government.

Instead he advised Singaporeans to preserve the present political arrangement, which could also mean - to his critics - 'don't vote in an opposition' or "don't introduce a multi-party system."

In his interview with Prof Lawrence Summers, Lee said: "Once you break that, by military intervention, you have destroyed a system which works on the basis of who was voted into office," he said.

There are, however, some old-timers who believe Lee never says anything flippantly and that he must have given it much thought.

So where can an out-of-office PAP, assuming the scenario were to unfold, get the troops to grab power from the (corrupt) government other than the 'people's' army?

Singapore is a small island that doesn't take much to start a coup.

Imaginative Singaporeans believe the PAP may one day launch a highly paid Presidential Guard-type unit, while others say a battalion of Gurkha troops now used for security duties could be used.

Lee, however, insisted his goal was maintaining the present governance. "My ambition is not to preserve the PAP," he said.
 

neddy

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Asset
America has spoken. But, who is going force Singapore ministers to give up their shameful wages, company director fees, honourariums, and other monetory perks?

Wall Street Bonuses May Go Way of Dodo Amid Bailouts (Update2)
By Dawn Kopecki and Christine Harper

Jan. 30 (Bloomberg) -- The Wall Street bonus, considered a sacred ritual, may become the industry’s biggest casualty as governments worldwide bail out financial institutions.

UBS AG was told to reduce bonuses after the Swiss government gave the country’s biggest bank a $59.2 billion lifeline. Bank of America Corp. is under pressure to scale back payouts after New York Attorney General Andrew Cuomo subpoenaed executives earlier this week for information on compensation and President Barack Obama said just yesterday that bonuses handed out by banks represent “the height of irresponsibility.”

The current system of “asymmetric compensation,” in which people are rewarded when they do well and aren’t required to return the rewards when they lose money, is detrimental to society and needs to change, said Nassim Taleb, a professor at New York University and author of “The Black Swan: The Impact of the Highly Improbable,” in an interview.

The worst economic crisis since the Great Depression, a $700 billion taxpayer bailout in the U.S. and the demise of three of the biggest securities firms -- Bear Stearns Cos., Lehman Brothers Holdings Inc. and Merrill Lynch & Co. -- didn’t deter investment banks from offering year-end rewards to employees on top of their salaries.

Financial companies in New York City paid cash bonuses of $18.4 billion last year, the sixth-most in history, even as they posted record losses, according to data compiled by the office of state Comptroller Thomas DiNapoli. The payouts are split among everyone from managing directors to secretaries.

Drain the Pool

“We won’t arrive at a situation where there are no bonuses,” Stephen Green, chairman of HSBC Holdings Plc, said at a press conference in Davos today. “There are always parts of companies that are profitable, and if somebody’s been working in a profitable business in a market where bonuses are a normal part of compensation, it’s difficult sometimes to say you won’t have any bonuses in that business.”

NYSE Euronext Chief Executive Officer Duncan Niederauer said today in Davos that “some compensation models need to be completely overhauled.” He added that this would be difficult to legislate and companies will have to take the lead.

“While a number of people clearly do create wealth by brain power, by use of the company’s balance sheet and by other resources, other people have been receiving incentives for basically turning up,” Barclays Plc Chairman Marcus Agius said at the World Economic Forum. “That I don’t think is very smart. An incentive system properly designed and fairly calibrated is absolutely fundamental.”

Claw Back

Credit Suisse Group AG’s investment bank decided last month to reduce the risk of losses from about $5 billion of its most illiquid loans and bonds by using them to pay employees’ year-end bonuses.

The Zurich-based company’s leveraged loans and commercial mortgage-backed debt will fund executive compensation packages. The new policy applies only to managing directors and directors, the two most senior ranks at Credit Suisse, according to a Dec. 18 memo sent to employees.

Credit Suisse, along with New York-based Morgan Stanley and UBS, also have added so-called clawback provisions that set aside portions of workers’ bonuses that can be recouped in later years if an employee leaves or is found to have behaved in ways that are harmful to the company.

Subpoena for Thain

Zurich-based UBS cut its 2008 bonus pool by more than 80 percent to less than 2 billion Swiss francs ($1.75 billion) after the company was forced to accept government funds in October. Chief Executive Officer Marcel Rohner, his 11 colleagues on the executive board and Chairman Peter Kurer won’t get any variable pay for last year.

Former Merrill Lynch CEO John Thain was asked this week by the New York attorney general’s office for information about payouts made before the largest brokerage firm was acquired by Charlotte, North Carolina-based Bank of America. The U.S. Treasury agreed earlier this month to provide $20 billion of capital and $118 billion in asset guarantees to Bank of America, the country’s biggest mortgage lender, to help absorb losses at New York-based Merrill.

Wall Street firms need to “show some restraint and show some discipline,” Obama said yesterday, with Treasury Secretary Timothy Geithner and Vice President Joe Biden at his side.

Obama Plan

Obama’s team is drafting a package of measures to address the credit crunch and details may be announced next week, people familiar with the matter said. Geithner met over the past two days with Federal Reserve Chairman Ben S. Bernanke, Federal Deposit Insurance Corp. chief Sheila Bair and other regulators to work out the plan.

The initiative may feature a concerted effort to remove toxic assets that clog lenders’ balance sheets. The FDIC probably will run a so-called bad bank to take on some of the securities; others will be insured by the government against losses while remaining on lenders’ books, the people said. Further capital injections for the biggest banks also are under consideration.

Senator Banking Committee Chairman Christopher Dodd vowed yesterday to use “every possible legal means to get the money back.” The Connecticut Democrat plans to summon executives whose companies received taxpayer aid to testify before his committee and explain their bonuses.

“You’re never going to get any support for the continued tough decisions we have to make if this kind of behavior continues,” Dodd said. “We can’t be underwriting to the tune of billions of dollars, whether it was used directly or indirectly. This infuriates the American people.”

Job Reductions

The Treasury Department has injected about $200 billion into banks across the country through its Troubled Asset Relief Program. Banks and financial companies have eliminated 265,000 jobs in less than two years.

Charles Elson, director of the University of Delaware’s John Weinberg Center for Corporate Governance, said it would be “very difficult” for the Treasury to recoup bonuses.

“Usually these bonuses were contractually made and paid out based on a formula unless you can show bad faith, some intentional misconduct,” Elson said. “These are situations where monies were paid under a contract, and the worst you can accuse these people of is making very bad decisions.”

People such as Robert Rubin, who received more than $100 million while serving as chairman of New York-based Citigroup Inc.’s executive committee, should be punished for their failure to understand the risks their institutions were taking, said Taleb, author of “The Black Swan.” A spokesman for Rubin declined to comment.

‘Don’t Fly’

“These people make excuses, after the fact, saying that nobody saw it coming and that you couldn’t predict it,” Taleb said in an interview. “That’s no excuse. If you know there are storms, don’t fly. And if you fly, fly with someone who knows about storms.”

Unless Rubin and others are required to return their bonuses or are punished in some way, Taleb said a regrettable system emerges “where profits are privatized and losses are nationalized.”

Treasury has the authority under legislation that created TARP to issue regulations that claw back excessive executive compensation, and that may give the administration some authority to go after excessive pay, said Larry Hamermesh, a corporate law professor at Widener University in Wilmington, Delaware.

“It was pretty clear from TARP that the secretary of the Treasury was supposed to establish a provision for executive claw-back,” Hamermesh said in a phone interview. “How the secretary has implemented that isn’t clear.”

The Treasury could require companies that request additional funds to repay excessive bonuses as a condition of the further financing, Hamermesh said.

“If they come around to ask again, they could say, ‘We’re going to deny it unless they cough up the bonuses,’” he said.

To contact the reporters on this story: Dawn Kopecki in Washington at [email protected]; Christine Harper in Davos at [email protected].

Last Updated: January 30, 2009 07:20 EST
 

imperialarms

Alfrescian
Loyal
Is this why you have forummers (like Redbull313, shockshiok) bashing Australia? They are actually trying to deflect their ill-gotten wealth in Singapore by switching the readers attention.

The reason why shockshiok called Singaporeans in Australia "subprime" is because those who go there are self-made men and women, whereas those who use Singapore taxpayers money to enrich thsemselves are "prime"
- you get it. It is the rich-poor divide.

No wonder you have Redbull313 trying to make Aussies jealous. He is either Tan Yong Soon or another Tan Yong Soon


It's a bad time in Singapore to flaunt your riches, especially if you're a high government official. By Seah Chiang Nee.
Jan 10, 2009


A GOVERNMENT elite has stirred ripples by talking of his expensive cooking lessons in France, revealing how hard times are deepening class differences in Singapore.

Inadvertently creating controversy was the permanent secretary at the Environment and Water Resources Ministry, one of the highest ranking civil servants.

Tan Yong Soon had related how he had spent S$46,000 for himself, his wife and son for a five-day trip to learn fine French cooking.

In ordinary times, this leisurely – but rather insensitive – account would not have amounted to anything much but these days are, of course, far from normal.

Two factors invited criticism to flare.

First, he was seen as flaunting wealth, obtained from his high pay, at a time when Singapore is suffering one of its worst slumps in history.

Many thousands of workers are still losing jobs or suffering wage cuts.

And, secondly, government leaders are accused of being hugely overpaid, as a result of which some are no longer able to relate to the common people.

Tan was also accused of “boasting” about his elitist background when he wrote that his wife was “a senior investment counsellor at a bank” and his son, a soon-to-be student at America’s prestigious Brown University.
/QUOTE]

hah his son at Brown, that place is liberal as hell, everybody takes weed there, immigration should test his blood when he comes back to visit papa
 
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