Singapore millionaires who don’t feel rich

Singapore, the third richest country in the world on a per capita basis, may be good at accumulating wealth but it fares less well when it comes to distributing it.WHEN I read last week that one in six households in Singapore is a millionaire in investable wealth, it stirred mixed emotions of pride and worry.

Bloomberg had earlier reported that the city state had become the third richest country in the world on a per capita basis.



Many Singaporeans probably share these mixed feelings, if they could take time away from work to think about it. (More on that later.)

The pride, of course, stems from our transformation from a squatter colony to this present level of affluence in only 47 years, and the concern comes from the high cost of living that such wealth brings.

Singapore is the 10th most expensive city in the world. The two factors – wealth and high cost – are related; if cost of living is taken into account Singapore’s wealth ranking drops to 11th in the world.

Inflation clouds everyone’s lives, unless he is among the 188,000 millionaire households, to which it probably matters much less..

A school-teacher commented: “Being told that I am living in one of the world’s richest cities doesn’t profit my life and the resultant high cost is a blow.”

Last year, the number of millionaires (in US dollars) increased by 14%, one of the world’s fastest growth rates. In the previous year – from 2009 to 2010 – it went up by a record one-third.

Their wealth does not include the value of their properties or other fixed assets. If it does, Singaporeans would be even richer.

The question is: how many of the new rich are foreigners who took up permanent residency here? If the number is high, it could distort the picture a little.

Over the past five years, the number of rich mainland Chinese, Indians and Indonesians who took up PR here has risen, pushing up the price of properties.

Two of Facebook billionaire co-founders, Mark Zuckerberg and Eduardo Saverin, have made Singapore their home.

I also noticed that the pro-government media has been playing up stories of rising wealth and the capacity of Singaporeans to spend it. It is understandable because it paints a rosy picture.

Recent tales included the following:

> Singapore’s (resale) public flats are worth more than some expensive villas and islands in Portugal, Greece and Spain, as well as luxurious properties in the United States, reported Business Times.

> Rising property prices – nearly 7,000 “shoe box” condos of 300 sq ft to 500 sq ft have been built. A 463 sq ft condo was sold for S$702,000 (RM1.7mil).

> For sale: a bottle of special edition whisky in Singapore for S$250,000 (RM620,165).

> Singapore girl from a promi­­nent family splurging S$200,000 (RM496,252) on a photo shoot.

> Launch of the Singapore’s most expensive car, priced at S$3.6mil (RM9mil).

> A 23,920 sq ft bungalow at the prestigious Nassim Road was sold for a record S$47.8mil (RM118.6mil).

Such stories will likely continue to happen but so will tales relating to the new poor.

Singapore may be good at accumulating wealth but it fares less well when it comes to distributing it.

In fact, what is rubbing off some of the “wealth” shine is the widening inequality between the rich and the poor, an imbalance that ranks a notorious second in the world next to Hong Kong.

According to the Manpower Ministry, the earnings of the poorest 20% had stagnated in the past 10 years, with real income rising only S$200 (RM496) to S$1,400 (RM3,471), or 0.3%.

Robert Kiyosaki, author of Rich Dad, Poor Dad wrote: “Singapore is rich and happy at the moment, and that’s not good. America was like that at one point in time.”

I know what he means.

A blogger recalled this was what former Prime Minister Lee Kuan Yew said years ago. He said he feared affluence was making Singaporeans complacent.

He said the young generation compared badly with the poorer, hard-striving migrants from China and needed “spurs on its side” to drive it on.

Are wealthy Singaporeans happy? Happiness is subjective, but a Twitter reported that only one quarter of the people are happy.

A newspaper for Indians in Singapore, Tabla, wrote: “They are among the world’s wealthiest, ranking sixth highest in net wealth with a mean value of US$284,692 (RM908,737) per adult. But Singaporeans aren’t necessarily a happy lot.”

Most attribute it to the pressure cooker living, the high cost of living and the education system. Despite what Lee said, Singaporeans work the longest hours in a worldwide comparison, beating the Japanese.

But the country has the second lowest job satisfaction in the world, according to an Accenture survey, with some 76% saying they are dissatisfied with their jobs.

Long-time visitor Brian Nelsen wrote last month: “Where are the friendly Singaporeans I used to know?”

He expressed shock and dismay at the abrupt change in the attitude of Singaporeans towards tourists in the last few years. They appear unfriendly and rude nowadays.

“Nobody smiles or returns a greeting any more. Many are now a surly lot,” he said. He probably had not met our richer folks.

Joyce Hooi of The Business Times wrote: “If Singapore had been a person, it would have stood above the unwashed tableau of Occupy Wall Street, watching from its penthouse and laughing into its Cognac.”

The really wealthy are busy buying up luxuries.

Every single day, she added, 25 people had bought a Mercedes-Benz or a BMW, and a Ferrari every four days over the past 11 months.

INSIGHT DOWN SOUTH BY SEAH CHIANG NEE  cnseah@thestar.com.my

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Euro debt crisis remains biggest threat to global economy, UN reports

UNITED NATIONS, June 7 -- The UN Department of Economic and Social Affairs (UNDESA) has released its mid-year World Economic Situation and Prospects (WEPS) report, in which it states that the continuous euro crisis remains a large threat to the world economy.

"The euro area debt crisis remains the biggest threat to the global economy," said the representative from the UN Department of Public Information, Newton Kanhema, to reporters during a press conference here on Thursday.

"An escalation of the crisis could result in severe turmoil in financial markets," he said.

The WEPS report reflects that, although some growth has been seen in developed countries, they continue to face significant challenges, particularly in Europe. The WEPS forecasts that the economic situation will "remain tepid" for 2012, with a slow- down in China's growth to an estimated 8.3 percent, while India is expected to grow between 6.7 to 7.2 percent during the 2012- 2013 term.

As a proposed solution to the dwindling global economy, assistant secretary-general for DESA, Jomo Kwame Sundaram, stressed the importance of cooperation between all countries.

"International cooperation is extremely important," said Sundaram. "International cooperation is important, because it will ensure, all countries, and all economies will benefit from [ it]."

As developed countries continue to struggle to bounce back, the report says they have to address four major issues: deleveraging banks, firms and households that continue to restrain normal credit flow; the continuous high rate of unemployment; the fiscal austerity responses to rising public debts; and the exposure of banks to sovereign debts, partnered with weakened economies that prolong the stagnation of the crisis.

The report also stresses that the "re-orientation of fiscal policies should be internationally, coordinated, and aligned with structural policies that support direct job creation, and green growth." -  Xinhua

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US military still strongest in the world

Despite the impact of the wars in Iraq and Afghanistan, as well as the financial crisis, the U.S. military is still the most powerful military in the world, a report released Tuesday in Beijing said.

The report "U.S. Military Assessment Report 2011", published by the China Strategic Culture Promotion Association, contains six chapters, 14 sections and three appendixes, including the U.S. strategic points, the U.S. military strength and deployment of troops, the defense budget and procurement of weapons and equipment, the U.S. structural and organizational reform, the new development of the U.S. combat theory and the U.S. joint military exercises, and summarizes the development situation of the U.S. military strength between 2010 and 2011.

The report pointed out that the internal and external environment faced by the United States has undergone major changes over the past two years. At home, the impact caused by the financial crisis on real economy has not been fundamentally alleviated; the national economy continues to decline; the budget deficit hits record highs and the unemployment keeps high. Outside the country, the United States is faced with the challenge to its leadership position brought by the multi-polarization of international forces and the rise of emerging powers. 

On the occasion of withdrawing from Iraq and ending the war in Afghanistan, the United States shifted its strategic focus to the Asia-Pacific region. The Obama administration has formulated new national security strategy, defense strategy and military strategy and accelerated the global deployment of troops. It is making efforts to strengthen army building in terms of institutional establishment, weapons and equipment, combat theory and military training and enhance the ability of war and non-war military actions.

The report said that although the wars in Afghanistan and Iraq and the financial crisis began in 2008 had an important impact on the comprehensive strength of the United States, the impact on its military capabilities has not yet been seen. The U.S. troops are still the most powerful in the world and it still has the ability to simultaneously start two large-scale regional wars and some small-scale emergent battles. It can provide strong support for the United States to return to the Asia-Pacific region and shift the strategic focus eastward.

The report also said that on one hand, China should remain vigilant on the United States' returning to Asia-Pacific region, intervening in the territorial disputes on South China Sea and transfer of its strategic focus eastward; on the other hand, China should also see the common interests in the deep economic integration of the two countries and in maintaining the peace, stability, development, cooperation and prosperity of the world.

In line with the spirit of mutual respect and mutual trust, equality and mutual benefit, both sides should strengthen the cooperation and exchange especially that of the two militaries and jointly cope with the challenges and threats of the 21th century.

The China Strategic Culture Promotion Association is a national non-profit civil society group composed of experts, scholars and social activists who are engaged in studies of international issues, Taiwan issue and cultural issues. The association was founded in Beijing on Jan. 5 2011, aiming at promoting security and stability of the Asia-Pacific region and encouraging the peaceful development on both sides of the Taiwan Strait through the studies, dissemination and exchange of Chinese strategic culture.

Read the Chinese version: 中国智库：美国军队仍然是世界上最强大的军队，author: Yang Tiehu

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Malaysian 13th General Election Pow-wow, Register as voters now!

On the edge of our seats

The whole country is getting fidgety as Malaysians await the 13th general election.

IT’S an extended silly season. Everyone is ultra sensitive and every event or statement is examined with a fine toothcomb for any underlying political message.

Hardly a day goes by that a politician does not let fly a missile at one opponent or another. From cows, condos to sex tapes, no one and nothing is spared.

One would have thought that after months of this, politicians would have run out of ammunition, and from the quality of the rockets being shot out, they are close to scraping the bottom of the barrel.

Everyone is so tense that even the recent reduction in RON 97 by 10 sen is seen as an indication that the polls is near.

By my vast experience of having covered the past five general elections, the polls should have already been here, gone and dusted. But this time round, Prime Minister Datuk Seri Najib Tun Razak seems intent on dragging out the silly season for as long as he can.

His opponents have joined him by declaring that Selangor and Penang would not hold their polls together with the national elections. Selangor MB Tan Sri Khalid Ibrahim had declared that his government would definitely not follow if it is held this month.

A June general election does not seem likely now (for some unexplainable reasons, the country has never held a general election in the month of June). So does this mean that Selangor will now follow suit if it is held next month?

No way, says Khalid’s boss Datuk Seri Anwar Ibrahim who wants Selangor to go the full distance (sometime in April next year). The games of the silly season continue.

One senior Barisan Nasional official enquired with a party worker recently how things were going and was shocked at the reply he got.

“Boss, we are all very tired. We have been on war footing since October and we do not know how much more we can take,” said the party worker.

Some of the candidates-designate from both sides, who have been campaigning quietly since January, are quietly complaining that they are running out of funds and at the same time cannot do anything about raising money from supporters.

“What am I to tell my supporters? No party will announce its candidates so early for fear they may be bought over or of sabotage,” said one aspiring candidate.

This is why some Umno stalwarts are calling on the leadership to start naming the potential candidates so that they can “be properly introduced” to the branches and avoid any sabotage.

This, I suspect, will also allow these people to make use of the official party machinery which means it will be less taxing on his or her personal resources which can then be reserved for the actual polling and campaign period.

This 13th GE will be a watershed election for Malaysia and every seat will see tough fights. “The mother of all battles” was how one senior journalist described the coming polls.

Unfortunately, like all things that are anticipated with such great expectations, I fear it will fall short of everyone’s outlook. GE 13 can’t help but disappoint because we are expecting so much from it.

Prior to last week, when it became obvious that the polls would not be in June or July, everyone seemed resigned to the election being held in September.

But then came Najib’s announcement that Budget 2013 would be tabled on Sept 28.

One could almost hear the groans of frustration going up all over the place. The so-called experts are now even suggesting November or January as the new dates.

One Cabinet Minister even pointed out that Tun Dr Mahathir Mohamad held the 10th general elections in exactly the same manner.

Dr Mahathir tabled the budget in October 1999, allowed the Lower House to debate the budget, but before it would be passed, he went to see the King and had Parliament dissolved. He took his Budget as his manifesto for the polls.

This senior Cabinet member said outright that Najib would do exactly the same because it proved to be a masterstroke by Dr Mahathir to defeat his foes then.

This conversation with the minister took place a month ago, long before Najib announced his Budget date.

So does this mean that the polls will be in October?

If statistics are anything to go by, it is unlikely to be held then because only the 1990 GE was held in the month of October (Oct 21 to be exact).

The following are the exact dates of the past 12 elections.
1st GE - Aug 19, 1959;
2nd GE - April 25, 1964;
3rd GE - May 10, 1969
4th GE - Aug 24 and Sept 14 1974;
5th GE - July 8, 1978;
6th GE - April 22, 1982;
7th GE - Aug 3, 1986;
8th GE - Oct 21, 1990;
9th GE - April 25, 1995;
10th GE - Nov 29, 1999;
11th GE - March 21, 2004; and
12th GE - March 8, 2008

Hopefully, someone out there can find a pattern from this list of dates and then correctly predict the polling date that Najib is holding so close to his chest and does not look likely to reveal any time soon.

Those claiming to know the man’s plans said we should examine Najib’s speech during last year’s Malaysia Day on Sept 16.

“He made many promises there. Once he has fulfilled all those promises, I am sure he will call for the elections,” said one of them.

The polls cannot come fast enough for most of us because we want to get back to some real work.

WHY NOT?
By WONG SAI WAN

> Executive editor Wong Sai Wan has been on election footing since 2010 and will be glad when it comes.

EC: Register now and you can vote in September

KOTA KINABALU: Malaysians who are eligible to vote should register this month to qualify to vote in the general election if it is held in September.

“If they register in the second quarter of this year, they will be able to vote if the election is held after August,” Election Commission deputy chairman Datuk Wan Ahmad Wan Omar said yesterday after briefing 30 officials from 15 political parties in Sabah about electoral regulations.

There are about a quarter million Sabahans above the age of 21 who have yet to register while about 3.6 million eligible voters nationwide have not registered.

Wan Ahmad said there were 946,638 registered voters in Sabah and 258,943 eligible voters have yet to register.

“I hope they will register now,” he said, adding that if everyone registered, Sabah would cross the one million mark and could reach 1,205,581 registered voters by September.

He also said there were very few people, who had come forward to clarify the position of some 13,000 dubious voters when they exhibited the names for three months.

“We believe many of these people are dead and their families did not report the deaths to the National Registration Department. We can't remove their names, so it remains in the rolls until their next-of-kin have not come forward to clarify it.

“That's why sometimes you get cases of someone with an age of 120 who is still in the roll.

“We cannot remove it as we are not empowered by law to delete such names,” he added.

Wan Ahmad also said they would be setting up 31 mobile election enforcement teams to check on offenders for Sabah and Labuan's 26 parliamentary constituencies.

He said there would be two teams each in Kota Kinabalu and Sandakan while each constituency would have a team, comprising an election officer, a police inspector, a local authority official and representatives of contesting parties.

By MUGUNTAN VANAR vmugu@thestar.com.my 

Lure of Penang sees spike in property prices

GEORGE TOWN: The scarcity of land on Penang island and its lure as a tourist destination and a second home for foreign retirees have caused residential property prices to soar by more than 25% over the past five years.

According to real estate valuers, the prices are among the highest in Malaysia, which is why the Consumers Association of Penang claimed that only the rich could live on the island a world heritage city.

A survey by The Star revealed that condominium units in Batu Ferringhi, Tanjung Bungah and Gurney Drive which front the sea are being sold at astronomical prices, in some cases beginning with RM2mil for a 1,000 sq ft unit.

Crowded skyline: High-rise buildings dot Gurney Drive, which was once a sedate, low-density area where locals came to relax. — K.T. GOH / The Star

Even pre-war houses in the inner city for example, in Campbell Street have been snapped up mostly by non-Penangites, who have turned them into boutique hotels or simply kept them because of their architectural beauty.

The prices of the houses have rocketed from about RM500,000 in 2007 to approximately RM800,000 today an increase of about 30%.

Raine & Horne Malaysia director Michael Geh said the increase was among the steepest in the Pulau Tikus, Gurney Drive, Tanjung Tokong, and Tanjung Bungah residential neighbourhoods, which experienced a rise of over 25% in prices of condominium units.

Other areas where prices of condominium units and terrace and semi-detached houses have shot up by at least 25% are Bayan Baru, Sungai Ara, Minden Heights and Batu Maung.

The medium-range housing schemes in George Town neighbourhoods of Perak Road, MacCallum Street, Burmah Road, Jelutong Road and Sungai Pinang have not been spared.

“These have seen over a 25% increase in prices over the past five years,” Geh said.

An apartment located in such a neighbourhood cost RM180,000 in 2007 but is now RM250,000,

Geh said the rise in property prices had driven many people to buy homes in Seberang Prai, where property prices are a third of those on the island.

“But we are seeing property prices on the mainland rising as well,” he added.

An apartment in Butterworth town is now selling for RM250,000, compared to RM180,000 five years ago, while a terrace house now costs RM500,000, compared to RM300,000 in 2007.

Mushroo ming buildings : A file picture showing Penang’s Gurney Drive in 2008. Many high-rise projects have sprouted there since.

Given the rise of raw materials prices and the scarcity of land, property prices in Penang were expected to continue rising, Geh added.

Meanwhile, Penang Barisan Nasional chairman Teng Chang Yeow said there were only one or two major hillslope projects during the previous administration. Now, there were hillslope projects all over the island.

He said the present guidelines on hillslope development were adequate, but the state government should be more stringent in enforcing them.- The Star/Asia News Network

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Sexy Advertising On the Rise

Magazine ads are becoming bolder. CREDIT: StockLite, Shutterstock View full size image

Don't blush, but chances are the magazines you read are getting sexier.

Sexy advertisements are up in magazines from Playboy to Time and Newsweek to Esquire, according to new research from the University of Georgia. Since 1983, the percent of ads using sex to sell products rose from 15 percent to 27 percent by 2003.

Though sexual imagery is used to sell almost everything, even banking services, the bulk of the increase has come in ads for impulse buys: alcohol, entertainment, beauty supplies. These products have long clung to the "sex sells" maxim, said study researcher Tom Reichert, a professor of advertising and public relations at the University of Georgia.

"Advertisers use sex because it can be very effective," Reichert said in a statement. (Past research has suggested, however, that sex doesn't sell to female readers, with sensual advertising images leaving women bored and uninterested.)

Sex sells

Reichert and his colleagues analyzed 3,232 ads published between 1983 and 2003 in six magazines: Cosmopolitan, Redbook, Esquire, Playboy, Newsweek and Time. These magazines were chosen because they have large circulations, include titles that appeal to both men and women, and because they have been included in past studies, allowing for easy comparison across time.

About half of the advertisements included models. Researchers analyzed these ads based on how sexily the models were dressed and whether they were engaging in physical contact, such as kissing or simulated sex, with another model. [Sex Quix: Myths, Taboos & Bizarre Facts]

The ads for health and hygiene products were the sexiest of all ads, with 38 percent containing sexual imagery across the three-decade study period. Beauty came in second, at 36 percent. Drugs and medications, which include weight-loss supplements, came in third with 29 percent of ads containing sexy models.

Just more than a quarter, or 27 percent, of clothing ads showed sex appeal during the study period, compared with 23 percent of travel ads and 21 percent of entertainment ads.

The overall uptick in sexiness was driven by increasingly sex-obsessed ads for alcohol, entertainment and beauty products. In 1983, only 9 percent of alcohol ads used sex to sell booze. Today, that number stands at 37 percent. Sexually arousing entertainment ads increased from 10 percent in 1983 to 33 percent today, and 51 percent of beauty ads now include sexiness, compared with 23 percent in 1983.

Modeling sexuality

Women are overwhelmingly the vehicles by which advertisers portray sexuality, the researchers found. That trend has held for three decades. In 1983, 11 percent of all advertisements contained sexy women, and only 3 percent contained sexy men. As of 2003, 22 percent of ads included sexy ladies, while only 6 percent featured smoldering hunks.

Sexy images popped up in odd places, including in 5 percent of advertisements for financial products in 2003. But for the most part, advertisers use sex to sell products that people might buy on a whim, such as a new flavor of vodka or a papaya-scented lotion. Only two categories — charities and computer companies — never used sex in their ads in this sample.

"Sex is not as effective when selling high-risk, informational products such as banking services, appliances and utility trucks," Reichert said.

The researchers reported their results online in May in the Journal of Current Issues & Research in Advertising

By Stephanie Pappas, LiveScience Senior Writer
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Sexy Advertising On the Rise