Source : The Straits Times, Nov 12, 2007
THE cost of living is rising, and the Government is helping Singaporeans cope with it, Prime Minister Lee Hsien Loong said yesterday.
While many people elsewhere would look to their governments to keep prices low, Singapore's approach is different, and Mr Lee believes it is one that works.
Its aim is to get the basics right - housing, jobs and affordable necessities.
'We help, we do a lot, but we don't help by keeping the prices individually controlled,' he said at a dialogue at the People's Action Party (PAP) annual convention. 'We help by making sure that the low income are able to pay for their necessities, able to earn a living, able to have a roof over their heads.'
While Singapore has gone through years with a stable cost of living and very low inflation, he acknowledged it might be tough to maintain such stability going forward.
Prices of flour, food, energy and even chicken are going up, and people are understandably worried, he said.
Following a jump in flour prices, bread prices here went up by up to 20 per cent, and noodles increased by 20 cents to 30 cents per kilogramme.
While there are calls on the Government to control prices, he said, Singapore will not head the way of countries such as Malaysia, China and India by keeping fuel and electricity prices down.
Instead, the Government helps the people with subsidies in education and HDB flats, through the Workfare Income Supplement scheme and periodic CPF top-ups when there are Budget surpluses.
'So, with the house, the HDB flat which we help you to buy... nearly everybody has a home, which is a big relief. So when rentals go up, you are not affected because you have your house, and you have something for your old age to retire by,' he said in response to concerns raised by a cadre on the rising cost of living.
There is also Workfare, he added, which sees the Government topping up the wages of low-income workers.
For example, those who earn $1,000 a month would get $1,000 plus of 'hongbao' from the Government a year in cash, CPF and Medisave, and this goes on continually.
But while these policies are important and helpful to the people, he believed the Government can do a better job in explaining them to Singaporeans.
He said that while the fine print of policies can be complicated, the principle behind them is not.
'The principle is to help yourself - you work, the Government will help you. But you must make the effort, and that is how Singapore will succeed. That is how you will succeed,' he said.
'And I think that is an approach that has worked for the economy, for the country, and we must keep that.'
Mr Lee was on a nine-member panel in the 90-minute dialogue at the meeting for cadres to speak on issues and challenges the party has to tackle.
Flanked by PAP chairman Lim Boon Heng, five MPs and a pair of activists, the PM tackled concerns that centred on the convention's catchy theme, 'Young and old, high and low', which refers to Singapore's ageing society and the growing income gap.
Mr Lee noted that Singapore's approach to battle the wealth divide has attracted the attention of other countries.
Referring to his recent interview with Chosun Ilbo, he said the South Korean top daily printed almost everything he said and displayed it over two pages.
Major newspapers and magazines in the West such as the Economist have also written about Singapore's changes, he said.
Urging the party to continue to serve Singaporeans so that it can win their support, he said: 'You are wearing white because it is a symbol that you care...and you are not just sitting there and letting somebody else take charge of the train.'
Monday, November 12, 2007
S'pore Won't Fight Inflation With Price Controls: PM Lee
Source : The Business Times November 12, 2007
Rising cost of living for lower-income, elderly to be met in other ways
The government is unlikely to impose controls on food or utility prices in response to rising inflation, but will continue to use other ways to help Singaporeans cope with the cost of living, said Prime Minister Lee Hsien Loong yesterday.
Although many other countries control oil prices, electricity prices and even bus fares to help poor people, 'our approach in Singapore is different', he said.
'We help - we do a lot - but we don't help by keeping the prices individually controlled. We help by making sure that the low-income are able to pay for their necessities, able to earn a living, able to have a house over their heads.
'We help you through Workfare, so if you work, you get more. And then we have packages like the Progress Package.
'This is the way we help Singaporeans and low-income Singaporeans to cope with the cost of living.'
He made the remarks at the People's Action Party (PAP) annual convention at the National University of Singapore's University Cultural Centre yesterday.
More than one party member had asked how the PAP-controlled government could help lower income Singaporeans cope with rising price inflation.
The difficulties faced by lower-income Singaporeans and the elderly were also raised by several Members of Parliament who spoke during the three-hour convention.
Mr Lee said: 'We've had a period now where the cost of living actually has been very stable. Inflation has been very low, bus fares have not gone up very much, food prices have not gone up very much, housing prices have been stable.
'Going forward, we're not sure that we can keep the cost of living as stable and as low as it has been. Oil prices are high and may rise further. Food prices have gone up.
'And bus fares will have to adjust when energy prices go up. Electricity prices have to go up. So I think this is something which people are going to be worried about.'
Although some expect the government to step in to keep prices low through controls, he said that it would be unwise to do so.
'If you look at bus fares in many countries, these are controlled so the bus companies lose money, the government just coughs up. Electricity prices similarly in many countries are controlled. And that is one way those governments try to help the poor people.'
'We do care,' he said. 'The principle is, you help yourself, you work, the government will help you. But you must make the effort. And that is how Singapore will succeed, that's how you will succeed. And I think that's an approach that's worked for the economy, for the country, and we must keep that.'
Rising cost of living for lower-income, elderly to be met in other ways
The government is unlikely to impose controls on food or utility prices in response to rising inflation, but will continue to use other ways to help Singaporeans cope with the cost of living, said Prime Minister Lee Hsien Loong yesterday.
Although many other countries control oil prices, electricity prices and even bus fares to help poor people, 'our approach in Singapore is different', he said.
'We help - we do a lot - but we don't help by keeping the prices individually controlled. We help by making sure that the low-income are able to pay for their necessities, able to earn a living, able to have a house over their heads.
'We help you through Workfare, so if you work, you get more. And then we have packages like the Progress Package.
'This is the way we help Singaporeans and low-income Singaporeans to cope with the cost of living.'
He made the remarks at the People's Action Party (PAP) annual convention at the National University of Singapore's University Cultural Centre yesterday.
More than one party member had asked how the PAP-controlled government could help lower income Singaporeans cope with rising price inflation.
The difficulties faced by lower-income Singaporeans and the elderly were also raised by several Members of Parliament who spoke during the three-hour convention.
Mr Lee said: 'We've had a period now where the cost of living actually has been very stable. Inflation has been very low, bus fares have not gone up very much, food prices have not gone up very much, housing prices have been stable.
'Going forward, we're not sure that we can keep the cost of living as stable and as low as it has been. Oil prices are high and may rise further. Food prices have gone up.
'And bus fares will have to adjust when energy prices go up. Electricity prices have to go up. So I think this is something which people are going to be worried about.'
Although some expect the government to step in to keep prices low through controls, he said that it would be unwise to do so.
'If you look at bus fares in many countries, these are controlled so the bus companies lose money, the government just coughs up. Electricity prices similarly in many countries are controlled. And that is one way those governments try to help the poor people.'
'We do care,' he said. 'The principle is, you help yourself, you work, the government will help you. But you must make the effort. And that is how Singapore will succeed, that's how you will succeed. And I think that's an approach that's worked for the economy, for the country, and we must keep that.'
Orchard Road To Get $40m Makeover But No News How Access Will Be Improved
Source : Channel NewsAsia, 11 November 2007
Orchard Road is getting a $40m facelift next year to add more vibrancy to Singapore's main shopping area.
Channel NewsAsia's Margaret Perry explores what more can be done to make the area easier to get around.
Shopping along Orchard Road was always a breeze for her until she became a mother.
Then she discovered how challenging it can be to get around in some parts of the area, especially with a stroller in tow.
One of the particular "trouble spots" is at the junction of Orchard Road and Scotts Road.
Isetan Scotts is just opposite Tangs, but getting there isn't easy for someone pushing a pram.
The shortest way is to use the underpass.
But once off the escalator, the goodwill of others makes a big difference.
There is also the overhead bridge between Royal Plaza on Scotts and Far East Plaza, and using it takes quite an effort for those with a trolley.
In fact, the only way to cross Scotts Road without encountering any steps is to walk past the American Club, up to Draycott Drive.
Three pedestrian crossings later and one will arrive at the Goodwood Park Hotel, and then it is a straight run to Tangs. The detour takes more than five minutes.
For other parts of Orchard Road, getting into Wisma Atria, for example, is also an uphill task.
"I don't feel easy, because (of) this one, I need to carry up," said a woman carrying a pram.
"It's not very convenient....but they are improving.....because MRT now has a lift," said an old woman.
Some stretches of Orchard Road are much easier to get around.
For example, between Orchard Parade Hotel and the Shaw House, there are four pedestrian crossings.
Between The Paragon and Dhoby Ghaut MRT station, there are seven such crossings.
Shoppers say that having more crossings is not the only solution.
"I guess they could build more lifts, but then again you always have the hazard of them always breaking down. The escalators already have that problem," said an Indian woman.
"Pedestrian crossings would be good but underpasses are great too, just as long as there're not too many stairs because it's so hard to get a child around," said another woman.
With Singapore's ageing population, such a wish-list becomes quite a necessity.
Orchard Road can then be truly accessible to all. - CNA/ir
Orchard Road is getting a $40m facelift next year to add more vibrancy to Singapore's main shopping area.
Channel NewsAsia's Margaret Perry explores what more can be done to make the area easier to get around. Shopping along Orchard Road was always a breeze for her until she became a mother.
Then she discovered how challenging it can be to get around in some parts of the area, especially with a stroller in tow.
One of the particular "trouble spots" is at the junction of Orchard Road and Scotts Road.
Isetan Scotts is just opposite Tangs, but getting there isn't easy for someone pushing a pram.
The shortest way is to use the underpass.
But once off the escalator, the goodwill of others makes a big difference.
There is also the overhead bridge between Royal Plaza on Scotts and Far East Plaza, and using it takes quite an effort for those with a trolley.
In fact, the only way to cross Scotts Road without encountering any steps is to walk past the American Club, up to Draycott Drive.
Three pedestrian crossings later and one will arrive at the Goodwood Park Hotel, and then it is a straight run to Tangs. The detour takes more than five minutes.
For other parts of Orchard Road, getting into Wisma Atria, for example, is also an uphill task.
"I don't feel easy, because (of) this one, I need to carry up," said a woman carrying a pram.
"It's not very convenient....but they are improving.....because MRT now has a lift," said an old woman.
Some stretches of Orchard Road are much easier to get around.
For example, between Orchard Parade Hotel and the Shaw House, there are four pedestrian crossings.
Between The Paragon and Dhoby Ghaut MRT station, there are seven such crossings.
Shoppers say that having more crossings is not the only solution.
"I guess they could build more lifts, but then again you always have the hazard of them always breaking down. The escalators already have that problem," said an Indian woman.
"Pedestrian crossings would be good but underpasses are great too, just as long as there're not too many stairs because it's so hard to get a child around," said another woman.
With Singapore's ageing population, such a wish-list becomes quite a necessity.
Orchard Road can then be truly accessible to all. - CNA/ir
S'pore Will Continue To Grow Even If Recession Hits : MM Lee
Source : Channel NewsAsia, 11 November 2007
Minister Mentor Lee Kuan Yew said Singapore would continue to grow even if the world economy slows down in the coming years.
Speaking at a community event at Tanjong Pagar GRC on Sunday, he said there are enough foreign investments in Singapore, such as the two upcoming integrated resorts and next year's Formula One race, to make sure that Singaporeans have jobs.
For many Singaporeans, older generation leaders like MM Lee have laid a strong foundation for the country.
But Mr Lee said it may not be all plain sailing ahead for Singapore in the years to come.
Related Video Link - http://tinyurl.com/2j5lll
S'pore will continue to grow even if recession hits: MM Lee
He said: "There's a real possibility that next year or a year down, the road prices will go out of control. America goes into recession and stops buying so much. China stops exporting so much. India stops exporting, and we will also stop exporting.
"Don't just believe everything will go up. Those who have lived long enough know that this is not true. So please remember to diversify your assets."
That is why, Mr Lee said, the government has a careful spread of investments across several items like real estate, bonds and shares, to adapt to how the market shifts from time to time.
He is also confident that Singapore is able to weather a global economic slowdown with several recent million-dollar foreign investments already in the bag.
Mr Lee said: "The construction work that goes on with these investments, the two integrated resorts, the Formula One and the hotels, you will not starve."
He said that the current economic boom in Singapore did not happen by chance.
It was achieved through careful planning and he promised that the government will continue to improve the assets of Singaporeans by improving public housing and the environment around it.
This includes the upgrading of older estates like Queenstown, which has a new feature called the Alexandra Canal Linear Park.
Mr Lee believes such enhancements will increase property prices of public housing and improve the value of assets owned by 85 percent of Singaporeans.
The minister mentor also launched a heritage book documenting the history of Queenstown. - CNA/so
Minister Mentor Lee Kuan Yew said Singapore would continue to grow even if the world economy slows down in the coming years.
Speaking at a community event at Tanjong Pagar GRC on Sunday, he said there are enough foreign investments in Singapore, such as the two upcoming integrated resorts and next year's Formula One race, to make sure that Singaporeans have jobs. For many Singaporeans, older generation leaders like MM Lee have laid a strong foundation for the country.
But Mr Lee said it may not be all plain sailing ahead for Singapore in the years to come.
Related Video Link - http://tinyurl.com/2j5lll
S'pore will continue to grow even if recession hits: MM Lee
He said: "There's a real possibility that next year or a year down, the road prices will go out of control. America goes into recession and stops buying so much. China stops exporting so much. India stops exporting, and we will also stop exporting.
"Don't just believe everything will go up. Those who have lived long enough know that this is not true. So please remember to diversify your assets."
That is why, Mr Lee said, the government has a careful spread of investments across several items like real estate, bonds and shares, to adapt to how the market shifts from time to time.
He is also confident that Singapore is able to weather a global economic slowdown with several recent million-dollar foreign investments already in the bag.
Mr Lee said: "The construction work that goes on with these investments, the two integrated resorts, the Formula One and the hotels, you will not starve."
He said that the current economic boom in Singapore did not happen by chance.
It was achieved through careful planning and he promised that the government will continue to improve the assets of Singaporeans by improving public housing and the environment around it.
This includes the upgrading of older estates like Queenstown, which has a new feature called the Alexandra Canal Linear Park.
Mr Lee believes such enhancements will increase property prices of public housing and improve the value of assets owned by 85 percent of Singaporeans.
The minister mentor also launched a heritage book documenting the history of Queenstown. - CNA/so
Will Life Policy Assigned To Wife Still Incur Estate Duty?
Source : The Sunday Times, Nov 11, 2007
Q WHEN I reached 55, I withdrew $200,000 from my Central Provident Fund (CPF) Ordinary Account and bought an NTUC Income single-premium policy for $250,000 with a sum assured at $301,055.
Under this policy, if death or total disability occurs before the age of 60, as a direct result of bodily injury caused by violent, accidental, external and visible means, the insurer will pay a sum equal to two times the sum assured plus any bonus accrued.
I have nominated my wife, a full- time housewife, as the sole beneficiary.
As I intend to bequeath it to her as a gift, I am thinking of making an assignment, though I have nominated her as a beneficiary, for the purpose of estate duty planning. My questions are:
1) Is it true that once a policy has been formally assigned, the assured surrenders the interests and rights to the assignee, and the policy does not form part of the assets of the insured listed under the assets category and thus does not attract any estate duty?
2) For a policy with a named nominee and in the event of a claim, will the sum assured plus bonus be treated as an integral part of the assets of the insured and be subject to estate duty, if the amount exceeds the threshold of $600,000?
Is my decision to assign the policy to my wife as a gift to her a wise move?
A ALTHOUGH a policy that has been assigned does not form part of the estate, it will revert to the deceased’s estate for estate duty purposes if the death occurs within five years of the date of assignment as a gift.
You are correct in saying that, for an NTUC Income policy with a named nominee, the proceeds will form part of your estate and be subject to estate duty if the $600,000 CPF plus other assets exemption (excluding the $9 million exemption for residential property) has been utilised. The balance in the CPF account has unlimited exemption.
For estate duty planning purposes, you could have arranged for the policy to be for the benefit of your wife at the point of inception, under Section 73 of the Conveyancing and Law of Property Act. This would have provided separate duty assessment, and as the sum is likely to be less than $600,000, there might have been no estate duty payable.
Alternatively, you could have given the $250,000 as a gift to your wife to buy the policy on your life, with her as the applicant and owner. In so doing, you would have frozen the amount subject to estate duty in the event of your death within five years, to just $250,000.
In contrast, in a policy assignment, in the event of death within five years, estate duty would be levied on the value of the policy at the time of death.
For example, if the policy value is $400,000, the estate dutiable amount would be $150,000 more than the original $250,000 single premium.
You are also correct in saying that the policy assignment means you will relinquish all your rights and interests. Even in the event of a permanent total disability claim before age 60, the policy payout will be for the benefit of your wife.
For estates of less than $12 million, the estate duty payable, after the applicable exemptions, is at a rate of 5 per cent.
Leong Sze Hian President Society of Financial Service Professionals
Advice provided in this column is not meant as a substitute for comprehensive professional advice.
Q WHEN I reached 55, I withdrew $200,000 from my Central Provident Fund (CPF) Ordinary Account and bought an NTUC Income single-premium policy for $250,000 with a sum assured at $301,055.
Under this policy, if death or total disability occurs before the age of 60, as a direct result of bodily injury caused by violent, accidental, external and visible means, the insurer will pay a sum equal to two times the sum assured plus any bonus accrued.
I have nominated my wife, a full- time housewife, as the sole beneficiary.
As I intend to bequeath it to her as a gift, I am thinking of making an assignment, though I have nominated her as a beneficiary, for the purpose of estate duty planning. My questions are:
1) Is it true that once a policy has been formally assigned, the assured surrenders the interests and rights to the assignee, and the policy does not form part of the assets of the insured listed under the assets category and thus does not attract any estate duty?
2) For a policy with a named nominee and in the event of a claim, will the sum assured plus bonus be treated as an integral part of the assets of the insured and be subject to estate duty, if the amount exceeds the threshold of $600,000?
Is my decision to assign the policy to my wife as a gift to her a wise move?
A ALTHOUGH a policy that has been assigned does not form part of the estate, it will revert to the deceased’s estate for estate duty purposes if the death occurs within five years of the date of assignment as a gift.
You are correct in saying that, for an NTUC Income policy with a named nominee, the proceeds will form part of your estate and be subject to estate duty if the $600,000 CPF plus other assets exemption (excluding the $9 million exemption for residential property) has been utilised. The balance in the CPF account has unlimited exemption.
For estate duty planning purposes, you could have arranged for the policy to be for the benefit of your wife at the point of inception, under Section 73 of the Conveyancing and Law of Property Act. This would have provided separate duty assessment, and as the sum is likely to be less than $600,000, there might have been no estate duty payable.
Alternatively, you could have given the $250,000 as a gift to your wife to buy the policy on your life, with her as the applicant and owner. In so doing, you would have frozen the amount subject to estate duty in the event of your death within five years, to just $250,000.
In contrast, in a policy assignment, in the event of death within five years, estate duty would be levied on the value of the policy at the time of death.
For example, if the policy value is $400,000, the estate dutiable amount would be $150,000 more than the original $250,000 single premium.
You are also correct in saying that the policy assignment means you will relinquish all your rights and interests. Even in the event of a permanent total disability claim before age 60, the policy payout will be for the benefit of your wife.
For estates of less than $12 million, the estate duty payable, after the applicable exemptions, is at a rate of 5 per cent.
Leong Sze Hian President Society of Financial Service Professionals
Advice provided in this column is not meant as a substitute for comprehensive professional advice.
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