The value of Dennis seminars is infinite

[Dennis Ng]

Genting Singapore borrow money now even though they are NOT using the money now and have to pay 5.125% interest while waiting.

Genting Singapore is building up Opportunity Fund, this is a Secret of the Rich, all Rich knows the Wisdom of doing so, but it baffles many small shareholders of Genting Singapore, wondering why the company is paying interests on money it does NOT need.

Genting Singapore has S$1 billion net profits and S$3.15 billion debt, even if it pays 6% on its debts, that works out to S$189 million, and its Interest Cover is 6.29 times. So there is really no need to worry about whether Genting Singapore can pay interests on its debts or not.

As I shared many times in my seminars, the average wants to pay off debts, the Rich Borrow money to become Richer.

Until you grasp this truth and follow to do what the Rich do, you would NOT become very rich, as we all have limited financial resources.

Mr Lim also expressed confidence that with the cash in hand, the company could capitalise on any opportunities that may arise. 'I can sleep soundly at night, knowing that with the cash we have, we will definitely be able to earn more than the 5.125 per cent which is the interest cost we pay for this sum of money,' he said.

One shareholder wanted to know why Genting is raising so much money when it had no acquisition target in mind, and yet was paying hefty interest on the funds.

Genting president Tan Hee Teck said: 'They want to see the colour of your money. Let's say hypothetically I want to build an IR (integrated resort) in Japan, the first thing the Japanese government is going to ask you - I say in Hokkien - would be 'Oo lui boh?' (Got money or not?). You can't say that I will raise some money down the road.'

Cheers!

Dennis Ng

The Straits Times
Apr 25, 2012
companies
Shareholders air concerns at Genting AGM
Firm allays fears about its ability to pay interest on $2.3b fund-raising effort

By Goh Eng Yeow

ANXIOUS shareholders of casino giant Genting Singapore yesterday expressed fears over the firm's ability to service the huge interest payments resulting from a recent $2.3 billion fund-raising exercise.

The move dominated questions from the hundreds of shareholders who turned up at the firm's annual general meeting (AGM) held in the luxurious ballroom in Genting's flagship Resorts World Sentosa.

The firm sold a bond-like instrument known as perpetual shares to raise the funds. It is paying a hefty annual payout or coupon of 5.125 per cent.

One after another, shareholders stood up to voice their concerns at the meeting, which lasted for two hours.

One elderly shareholder asked company chairman Lim Kok Thay if Genting would be deferring any payout on the perpetual securities - which give the issuer discretion over repayment of the principal and the ability to defer coupon payments under certain circumstances.

Another shareholder asked if the company's decision to pay out a measly one-cent dividend was to make the perpetual bonds attractive to buyers, since it offered a much higher payout rate in percentage terms than the shares.

But Mr Lim took pains to allay their fears. He said: 'Your board and management are highly confident we can honour all our obligations. Please don't start talking about defaults. We are not a fly-by-night company. In a short span of time, we have grown tremendously. You can see you are the owner of every single brick in this resort.'

He noted that Genting had been given high ratings by credit ratings agencies. 'We have the best credit ratings of any gaming companies in the world, and that includes whatever the American operators can come up with. They are rated as junk. We are investment grade. I can assure you. Please sleep well at night.'

The perpetual securities had been a 'rare win-win situation' for both the company and the investors who bought them. 'It is very rare for both sides to win. We give them very good interest - 5.125 per cent - compared with bank interest which is below 1 per cent,' he said.

In the financial year ended Dec 31 last year, Genting had reported a net profit of $1 billion, revenues of $3.2 billion and borrowings of about $3.15 billion. It is one of Singapore's largest listed firms with a market value of $21 billion and more than 94,000 shareholders.

Mr Lim also expressed confidence that with the cash in hand, the company could capitalise on any opportunities that may arise. 'I can sleep soundly at night, knowing that with the cash we have, we will definitely be able to earn more than the 5.125 per cent which is the interest cost we pay for this sum of money,' he said.

One shareholder wanted to know why Genting is raising so much money when it had no acquisition target in mind, and yet was paying hefty interest on the funds.

Genting president Tan Hee Teck said: 'They want to see the colour of your money. Let's say hypothetically I want to build an IR (integrated resort) in Japan, the first thing the Japanese government is going to ask you - I say in Hokkien - would be 'Oo lui boh?' (Got money or not?). You can't say that I will raise some money down the road.'

A shareholder, who called himself Mr Toh, complained about the proposed one-cent dividend payout. He used a Hokkien expression to suggest that the company must be thinking that one cent is bigger than a bullock-cart wheel.

But Mr Lim noted that there was nothing shameful about the one-cent dividend. 'That one-cent dividend works out to $120 million of your money - $120 million is what this company is paying out as dividend. I am sure if you are embarrassed about it, there will be some charity bodies which will be quite happy to receive your one-cent payout,' he said.

After the meeting ended, each shareholder was given a lunch box to take away.

engyeow@sph.com.sg

[Dennis Ng]

All penny stock in top 20! Very seldom got this "scene".
When penny stock starts to fall, it is likely the end of the bull.
There is a so called 'wisdom': "sell in May and go away"!
Better beaware.

yes, it is unhealthy to see Top 20 trading volume stocks all are Rubbish stocks, not just penny stocks. Rubbish stocks are penny stocks with little or no fundamentals. It might represent stock syndicates trying to make Money while the index (STI) still holds above 2,900 level.

Especially when most of the Top 20 stocks traded today are less than 5 cents, 2 cents, 3 cents stocks.

its' a process known as "Pump and Dump" in the markets. ie. stock syndicates would push up prices of rubbish stocks, then dump it down.

This is happening now, after going up in last week, now a few of the Top gainers such as JEL Corp, TT International, Equation are falling today.

JEL Corp today 26 Apr 2012 drops by 3 cents to 9.2 cents, or down 25.4%! So those who bought at 12 cents now will be sweating.

[Dennis Ng]

Dear Dennis,

Any comment on the current share price of JEL?

It is now trading at a very high p/b ratio and currently there are no earning to justify such high price.

If we use back the Company's net profit in year 2007 (approximately 8 million), the PE is approximately 25.

Appreciate your comment.

Regards
Justin

yes, there is no way to analyse the company based on FA now.

I already commented in another discussion thread:

its' a process known as "Pump and Dump" in the markets. ie. stock syndicates would push up prices of rubbish stocks, then dump it down.

This is happening now, after going up in last week, now a few of the Top gainers such as JEL Corp, TT International, Equation are falling today.

JEL Corp today 26 Apr 2012 drops by 4.4 cents to 7.8 cents, or down 36%! So those who bought at 12 cents now will be sweating.

wow, another day and JEL Corp dropped further to close at 6.4 cents, those who bought at 12.2 cents 2 days ago now see a loss of 47.5%. That's how dangerous if you buy a stock with little fundamentals and only Praying for it to go up after you bought.

[Dennis Ng]

Income or Passive Income is certainly NOT the Way to become Rich.

Even with his company so big (biggest in the world for making Popiah skin), total revenues was S$430 million, if Net Profit margin is 10%, he makes S$43 million a year, but now his wealth is estimated at least S$1.2 billion by Forbes.

So bulk of his wealth is NOT from income, but from him able to Grow his savings through Investing (Capital Gains), so all the fans of Robert Kiyosaki, please wake up to this fact. You cannot become very Rich following Robert Kiyosaki's advice to focus on Income. Imagine after you save S$100,000, if get 10% yield (income) on this savings, it is just S$10,000, to reach S$1 million through this income, you need to wait 100 years. Please wake up.

If you are NOT rich and a middle class and you want to become rich, at least S$1 million dollars, then you need to learn how to invest to grow the money (Capital Gains mainly) to reach S$1 million. That's how many Rich people became rich from poor, that's how I did it as well. Good news is I'm willing to teach how if you're willing to learn.

Cheers!

Dennis Ng

Popiah King not giving up his kingdom
09 February 11 The Straits Times by Robin Chan

'POPIAH King' Sam Goi does not often disagree with Minister Mentor Lee Kuan Yew.

After all, the successful businessman from China had heeded Mr Lee's call for local firms to expand into overseas markets as early as 1980, and has reaped the benefits tremendously.

Today, his company, Tee Yih Jia Food Manufacturing, is a famous global frozen foods brand in markets spanning the United States, Europe, Japan and China.

But when Mr Goi heard that Mr Lee had said that Tee Yih Jia would be swallowed up by the likes of food and beverage giant PepsiCo if it became too successful, he decided to talk to The Straits Times about his company's plans.

The gist of it? Selling out is far from his mind.

Even at the age of 62, he harbours ambitions to grow the company further by taking the Chinese market by storm, introducing new food products and even making his firm a Fortune 500 company one day.

'I am very honoured that MM mentioned my company. It means he remembers my company,' he says in his spacious executive chairman's room in Senoko, surrounded by auspicious Chinese paintings.

He clearly admires Singapore's first prime minister. Among a clutter of papers on his table lies a newly printed photograph of him with Mr Lee at Dunman High School, where Mr Goi is on the advisory committee.

But he respectfully disagrees that he has any need or intention to sell out his company, where he is still sole owner.

'Everyone has his own view. I don't know what MM is thinking (when he said that Tee Yih Jia would be taken over by PepsiCo),' he said.

Mr Goi, who sailed to Singapore as a six-year-old on a small boat with his parents to flee the communist government in China, admits that many Asian companies have been taken over by Western ones.

And manufacturers, especially those in Singapore, have found the going tough once they get out into the world of open markets and fierce competition.

In fact, Mr Goi has been approached on numerous occasions by private bankers with lucrative offers to buy him out. He declines to disclose the amounts offered, and claims he has never heard of an approach from PepsiCo.

He tells The Straits Times that he keeps his business separate as 20 smaller units so that those takeover vultures do not get even hungrier.

'Revenue? I don't want to share because a lot of giants have their eyes on me. Why do I split my business into so many companies, all below $100 million each? I don't want to make it open to the public. But if you add it all up, the value is higher than what has been reported,' he says.

He later revealed that total revenue last year for all his businesses combined was $430 million.

Mr Goi takes all the attention in his stride. 'People ask me, 'What price?' But I just smile and say, 'Thank you, I'm not considering.' I have never opened up my books.

'If a big company approaches me, I don't feel that it is a bad thing. It means my company is growing, and people are taking notice of it.'

Tee Yih Jia is one of the few manufacturing success stories Singapore has produced in its more than 45-year history.

For all of the country's widely praised economic development, it is the foreign multinational companies (MNCs) that have thrived here, leaving the local small and medium-sized enterprises to service them.

Economists and business leaders have often been vocal critics of how the Government could have done more to promote local firms instead of relying on foreign MNCs.

And, indeed, Tee Yih Jia and a few others such as Creative and Yeo Hiap Seng have been proof that Singaporeans are capable.

But in interviews with Straits Times journalists for a new book, Hard Truths, Mr Lee said that with Singapore's small market and lack of talent, it would never be able to produce a world-class manufacturing company.

Rather, it is destined to remain reliant on global MNCs from the West, and perhaps from China and India in the future, where companies have the resources, talent and market size to grow.

And even if a company is successful, said Mr Lee, it cannot avoid eventually being taken over by the larger firms.

'Get to world class, and there will be a company that is eyeing all these possible takeovers,' he said.

Tee Yih Jia, he said, 'once it begins to succeed in America, (it) will be taken over by conglomerates like PepsiCo'.

'How do I know? Because I have attended PepsiCo meetings. They collect foodstuffs from around the world and sell them in their outlets in Latin America and in all the cinemas across the world.

'They will buy up Tee Yih Jia, and Tee Yih Jia can't compete with them because where are its outlets?'

Mr Goi says he was not surprised Mr Lee made those comments. But he points out that the company is already well in the US market.

In fact, Tee Yih Jia has been there since the 80s. In 1988, Mr Goi bought over Main On Foods, an established food manufacturing and distribution company in Los Angeles, for US$20 million - his first overseas investment.

Today, some 60 per cent of his revenue comes from products he sells to stores and supermarkets in the US, Europe and Japan.

But despite his success, Mr Goi admits it is tough going for a Singapore company.

'What MM said is correct. The local market is small. And we face a lot of competition,' he says.

He points out that from his office, he needs to drive just 15 minutes to neighbouring Johor, where costs of labour, raw materials and rents are at least 60 per cent cheaper.

'Our food costs cannot compare with Malaysia, Indonesia or any other country. Even in the US, manufacturing food is quite cheap because they have raw materials. Here, we import everything. Singapore definitely cannot compete on price.'

What, then, has been key to Tee Yih Jia's survival, and even growth? Quality and hygiene, he says.

'Our manufacturing hygiene in Singapore is a standard. Are other brands as hygienic or not? We don't know. Even Chinese people don't buy products made in China. We must compete on quality and hygiene,' he says.

That is why Mr Goi has invested heavily in upgrading the manufacturing processes for his foodstuffs and has been highly protective of his proprietary production processes honed from trial and error over 30 years.

'Maybe other companies have a lot of money to produce a machine. But processing is different. All of it is our own design. We learnt from the experience and the time we put in producing spring rolls, roti prata. We saw a lot of trouble when it first came out, so we modified it,' he says.

'After we had modified it, we would see another problem. So month after month, year after year, we would try to improve it. Other people, no matter how much money they put in, cannot do this overnight. Food is like that; it may be made from the same ingredients, but if different people fry it, it will taste different.

'I want to make sure that all my products that go to the consumer are perfect.'

The company is a giant in popiah and roti prata, most of which are made in Singapore or the US factories to guard against copycats.

As testament to its commitment to quality, the company is bringing in a new machine in three months which will improve the texture of roti prata, he says.

'Why do I spend another $5 million to $6 million to upgrade, when the selling price is still the same? Because we must improve ourselves.'

As Asian food becomes more popular in the West, he plans to introduce two or three new products this year, which will appear in the next six months.

He is already looking at the next frontier - competing in the Chinese market.

'My dream? I want Asian food to have a place in the world. The China market can change a lot of things, there are 1.3 billion people. Today, maybe Pepsi or Coca Cola is No.1, but maybe one day, herbal tea or soya bean will overtake it (as the No.1 selling drink).

'If you want to become a good company, you must have a China market share. If you can produce, and can sell there, it is a big, big market,' he says.

Mr Goi took a few years to focus on his property business in China, the Yangzhou Junhe Real Estate Group, and then used the capital gains to invest in his food manufacturing business.

He is now more focused than ever on charting the growth of the company.

He is making 2011 the year for his return to a more hands-on role in the company, pushing for more acquisitions to expand the business.

'I always tell my staff, to be one of the largest manufacturing firms and the world's best, we must compete with ourselves. Today, we must be better than yesterday. Tomorrow, we must be better than today. With that kind of belief, then Tee Yih Jia will forever be a leader in manufacturing.

'And, maybe one day, I can grow (it) to become a Fortune 500 company. (I) can try.'

chanckr@sph.com.sg

[Dennis Ng]

found this posting in the internet. Just sharing with everyone.

http://financiallyfreenow.wordpress.com ... llionaire/

junne 25, 2011

financiallyfreenow Personal Finance 21 Comments

How a Salaried Employee became a Millionaire?

A few days ago, I went for a talk on “Path to Financial Freedom” by Dennis Ng. It was actually a free preview for his workshops but one could learn a thing or two from the preview. He has been featured in many local newspapers and TV shows and writes for MyPaper every alternate Wednesday. What connects him to the layman is that he was once a salaried employee like most Singaporeans and he became financially free after several years of saving and investing prudently.

Dennis Ng shared how he became a millionaire. He was earning an average of $6,000 per month for 15 years. He saved 20% of his salary per month and that works out to $14,400 per year. What he did with his savings over the years was that he invested in stocks and properties. He did not reveal things like what stocks he invests in, which year he started investing, if he lost huge amounts of money during his investments and if he has buffer cash to cushion him from loses and to cover his basic needs. From his preview, I could gleam that he looks at the financial statements of companies and invests in fundamentally strong companies ala Warren Buffett style. I think a major reason why Dennis became a millionaire was that he timed the market. When the stock market was getting exuberant, he exited from the market like in 2007. He entered again after the prices crashed. He uses technical analysis by looking at 100 days simple moving average and 200 days simple moving average crossovers.

He also is very prudent in his expenses. He shared his experience on how he curbs his expenses. When he was working, his fellow colleague always bought a $5 Spinelli coffee everyday whereas he made his own 3-in-1 coffee. To commute between places, he uses BMW (bus, MRT, walk).

Furthermore, he explained that not all debt is bad. There’s good debt and bad debt. Bad debt is car loan, credit card debt, among others. Good debt is your housing loan and investment property mortgage loan.

The preview reinforced my beliefs and the idea that becoming financially free is not difficult. One has to save a substantial amount every month consistently. Use part of the savings to invest prudently in stocks for the long-term. The other part can become your “safety net” or emergency fund to be used to cover your daily expenses when you lose your job. Your expenses should also be kept low and not be spent on unnecessary stuff. Also, the earlier you start investing, the faster you can start compounding your money since time is on your side.

[Dennis Ng]

28 Jul 2011

Someone asked me what is my goal?

I shared that my goal is to set up S$100 million Charitable Foundation in 100 countries, and this foundation is set up with the Aim to help to Elevate the Poor from Poverty.

My original goal is to set up One S$100 million Charitable Foundation in Singapore in 5 years, but I now change to 100 countries (in 10 years, the first one in Singapore in 5 years) becos Buckminster Fuller said that we must work for ALL of Humanity, and NOT just our country.

The best way we can pay tribute to Buckminster Fuller is to live his principles. This is what I hope/aim to do.

http://en.wikipedia.org/wiki/Buckminster_Fuller

I'm now reading Critical Path, a book written by Buckminster Fuller and he is certainly someone who has made a huge influence on my life, other than Andrew Carnegie, Napoleon Hill, Philip Fisher, Warren Buffett and Benjamin Graham.

I share many common views and principles as Buckminster Fuller:

http://en.wikipedia.org/wiki/Buckminster_Fuller

“Everything you've learned in school as "obvious" becomes less and less obvious as you begin to study the universe. For example, there are no solids in the universe. There's not even a suggestion of a solid. There are no absolute continuums. There are no surfaces. There are no straight lines.”

“I live on Earth at present, and I don’t know what I am. I know that I am not a category. I am not a thing — a noun. I seem to be a verb, an evolutionary process – an integral function of the universe.”
― Richard Buckminster Fuller

“I'm not trying to counsel any of you to do anything really special except dare to think. And to dare to go with the truth. And to dare to really love completely.

“Love is omni-inclusive, progressively exquisite, understanding and compassionately attuned to other than self.”

“If success or failure of this planet and of human beings depended on how I am and what I do... HOW WOULD I BE? WHAT WOULD I DO?”

“If humanity does not opt for integrity we are through completely. It is absolutely touch and go. Each one of us could make the difference.”

“Never forget that you are one of a kind. Never forget that if there weren't any need for you in all your uniqueness to be on this earth, you wouldn't be here in the first place. And never forget, no matter how overwhelming life's challenges and problems seem to be, that one person can make a difference in the world. In fact, it is always because of one person that all the changes that matter in the world come about. So be that one person.

“I am convinced all of humanity is born with more gifts than we know. Most are born geniuses and just get de-geniused rapidly.”

[Dennis Ng]

Anyone to explain the significance of such announcement?

GUOCOLEISURE LIMITED APPROVES ESTABLISHMENT OF S$300,000,000 MULTICURRENCY MEDIUM TERM NOTE PROGRAMME

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

this is quite common, many Listed companies have such a thing (Medium Term Note Program) in place. Basically, it is to prepare first, so if company wants to borrow money, they can do so under such a program...

Most of the Rich NOW are either Raising their Cash Position (mine is now raised back to about 67%, up from 60% 1 month ago) or Borrowing money to stand by for Opportunity in the Coming Financial Crisis (Genting Singapore borrowed over S$1 billion Perpetual Bond, happily paying interest rate of 5.125% to wait for any Opportunity)....

On the other hand, many middle class Singaporeans after waiting for 3 years doing nothing, now finally rushed to Invest their money. Many choose to buy properties when prices are much higher, imagine Bishan condo at S$1,700 psf when one can buy The Sail at S$1,800 psf. Or pay S$1,300 psf to buy property in Punggol when one can buy S$1,300 psf in the Resale condo markets for many better locations.

They are now rushing to invest to get some yield, some rush for residential properties to get "attractive Rental Yield of 3%" (while I bought 2 years ago at lower prices enjoy yield about 4.7%. Or they buy dividend stocks to get dividends of 4%...without knowing that many of the REITS I bought in Oct 2008 and early 2009 that time yield me dividend yield of 10% or even higher...recently, I sold almost ALL the REITs I hold as yield has come down and Asset Value has gone up (remember that Asset Value can come down fast too when market falls as REITS have to revalue their properties).

If you talk to your friends (if they are mainly middle class people) you would realise that my observation is "Spot on". And unless you talk to experienced Investors which I do, again, you will find it silly or unbelieveable for some people to want to hold millions of Cash earning next to nothing when inflation is 5%. Well, people forget that when we do deploy our Opportunity Fund, minimum Potential Upside we look for is 50%, so what is losing 5% per year and Worst Case Scenario wait for maximum 2 years, or lose total of 10% (max downside for us), if we can make Minimum 50%...

What I teach in the seminars is really what the Rich Know and Do, but after my seminars, many seminar graduates still have half-hearted belief in what I taught, having doubt whether it would work or not, since what I teach may be Contrary to what they Learned ALL these years from schools, from parents, and from Public media such as CNBC or Channel News Asia.

[Dennis Ng]

Majority of S'poreans 'will not be directly affected by inflation'
by Cheow Xin Yi
04:45 AM May 15, 2012

SINGAPORE - Headline inflation is expected to remain at 5 per cent for the next few months but the majority of Singaporean households will not be directly affected, said Trade and Industry Minister Lim Hng Kiang in Parliament yesterday

http://www.todayonline.com/Singapore/ED ... -inflation#

My view is Minister is talking nonsense, we don't pay rent, but we pay housing loan instalment, if property prices higher, most people who buy properties would have to pay higher instalment as well, similar to higher rent. And we must understand Opportunity Cost, so even if we don't pay rent, we must still factor cost of accommodation. cost of living include Accommodation, Transport, Food and Clothing, does it make sense to exclude Accommodation and Transport?

Next thing would they say let's exclude cost of food from Inflation for people who don't eat outside but cook at home? Nonsense, total nonsense.

[ilovecck]

Majority of S'poreans 'will not be directly affected by inflation'
by Cheow Xin Yi
04:45 AM May 15, 2012


Next thing would they say let's exclude cost of food from Inflation for people who don't eat outside but cook at home? Nonsense, total nonsense.

I think Dr Lily Neo said something similiar to this before, not about inflation but pertaining to the food prices.

[Dennis Ng]

I think Dr Lily Neo said something similiar to this before, not about inflation but pertaining to the food prices.

Hi ilovecck,

just wondering are you talking about this exchange between Dr Lily Neo and Dr Vivian?

Dr Lily Neo: Sir, I want to check with the Minister again on the strict criteria on the entitlement for PA recipients. May I ask him what is his definition of "subsistence living"? Am I correct to say that, out of $260 per month for PA recipients, $100 goes to rental, power supply and S&C, and leaving them with only $5 a day to live on? Am I correct to say that any basic meal in any hawker centre is already $2.50 to $3.00 per meal? Therefore, is it too much to ask for just three meals a day as an entitlement for the PA recipients?

Dr Vivian Balakrishnan: How much do you want? Do you want three meals in a hawker centre, food court or restaurant?

Dr Lily Neo: It is cheaper to cook for one person.

Dr Vivian Balakrishnan: It is cheaper to cook for one person. The point I was trying to make is that every family will have different needs and preferences. I am not by any stretch of the imagination claiming that what we are offering as public assistance is a generous package. I am not saying that. But what I am saying is that it is enough, by and large, for most families to get by and, for those who have needs over and beyond that, there are other means to do so. If every one was starving on this amount that we are giving and is totally devoid of any other sources of help, Pelangi Home would be overcrowded, and I would be building many, many more Pelangi Homes. So, in the end, the proof of the pudding is in the eating. Yes, any one of us, if we search hard enough, may be able to find a family or people who need additional help. But I would also say that any one of us, if we really put our minds to it, is capable of finding those additional sources of help. What I am designing is a system in which public assistance can and should be complemented by other sources of help. I think we can continue arguing this and we can continue finetuning the exact amount that is needed. But let us just bear in mind the fact that the system is set up with a certain amount of tension, and it is a healthy tension.

In fact, I cannot resist saying that I am very disappointed that in the whole debate on MCYS, the Opposition MPs have not participated in this, and I have actually faced real probing questions more from the PAP MPs and the Nominated MPs. Perhaps, they totally agree with my policies, philosophy and programmes.

Dr Lily Neo (Jalan Besar): Mr Chairman, the Minister yesterday announced that PA allowance would be increased by $30 a month, from $260 to $290. The Minister did not answer my two questions on whether PA allowance commensurates with inflation and whether there has been a study done to ascertain whether PA allowance serves the needs of the recipients.

Sir, my single constituents told me that they needed to skip one meal a day to live on the $260 per month. And now, MCYS is going to give them $1 more a day. But, Sir, $1 a day will not be able to buy them one meal a day in any hawker centre.

Dr Vivian Balakrishnan: When we did this review of the Public Assistance rates, we took into account both the impact of inflation since the last review as well as the impact of the GST increase. There will always be arguments about whether a sum that we have decided is enough or not. As I said yesterday, frankly, one limiting factor must be that the sum that we give through Public Assistance cannot be so generous as to erode the work ethic. As I said again yesterday, if you take a family with three children, the amount they can receive from Public Assistance - I do not have the exact figure now - I think exceeds $900. At that level, you are getting dangerously close to the earnings of a low-wage worker.

Having said that, I think there will always be unique circumstances when some families find that that sum is not enough. And that is where the community and grassroots organisations have to come in and look for those mitigating or exceptional circumstances and more help is necessary. So the key point is that as far as the entitlement portion is concerned, I will admit that that is set low. But have flexibility, have organisations and individuals who are able to assess special needs of special families and then respond accordingly. That is the system which we have.

The alternative is to set the entitlement at a very high level. But once you do that, I think you would not have only 3,000 families on Public Assistance, you will see many multiples of families.

Dr Lily Neo: Sir, the Minister said that the increment was done in such a way so as not to take away the work ethic. Surely, this argument cannot be applied to PA allowance recipients because this is a group of people that can never work either due to poor health, old age or disability. Therefore, this work ethic concept does not work. The other point is that the Minister said that this group of people can depend on grassroots organisations and others. Am I to understand that MCYS cannot provide adequately for the most vulnerable group of our society and that PA recipients must go and seek help from others? He said yesterday that in this globalisation, he would ensure that increasing number of Singaporeans would not feel left out and that he would provide more assistance to the poor to cope with the higher cost of living. May I ask him: should providing three meals a day not be a priority of his promise?

Dr Vivian Balakrishnan: I take the Member's point that for Public Assistance, we have fairly strict criteria. But having said that, I am still not willing to go to the other extreme and say that since we have got strict criteria, we can afford to be generous. This is the same point that Mr Seah Kian Peng raised yesterday. I have sympathy for that point, but I would still appeal to Members of this House to exercise caution.

Her second question was: why must they go and seek help? Why must they ask for it? I would like to remind her again of my speech yesterday when I said that if it is going to be low on entitlement and high on flexibility, then we do want some effort to be exerted on the part of the recipients. Yes, we do want them to go and ask for help. But I also said yesterday that, let us not get too carried away and reach a stage where if someone does not know or does not want to ask for help, we ignore that person. I have also asked the community organisations, neighbours, voluntary welfare organisations and the rest of us, if we see someone who needs more help, enquire about that person and organise the help.

Let us talk about meals since the Member has phrased her question specifically about three square meals. You and I, in fact, all of us, know that there are programmes for meals at home. There are organisations which specifically bring bread and rations, many of which are bought from FairPrice, gratitude to Mr Seah as well. But there are schemes like this. That allows me to say with a clear conscience to both the PAP and the Opposition MPs that nobody in Singapore needs to starve, nobody needs to be deprived of healthcare, and nobody needs to be deprived of a roof over his or her head. If someone indeed is so destitute and is starving, we have other means and other safety nets for them. We can bring them to the Pelangi Home, and I would invite all of you to come to Pelangi Home and see the standard of care, the facilities, the food and the way we look after them.

So, please do not run away with the misconception that Singapore is a cold, heartless place where, because we are so strict on criteria and entitlements, people are starving, freezing and denied the dignities of life. All I am asking Members is just to bear these principles in mind. Entitlements will always be low, ie, the person has to ask you for help and not bang on your table for help. We will always need the many- helping-hands model, not because the Government is broke. We can always do more and we can always raise GST further. But that is not the tone of the society that we are trying to create. We are saying that, yes, there will always be problems in society and it cannot be only the Government to do it because, if you want the Government to do it all, it means higher taxes and a large bureaucracy. As we can see in many other countries who have created elaborate welfare-states based on the best of intentions and the softest of hearts, such systems ultimately failed, they are not efficient and they are going to run out of money. We will see that happen in our lifetime, but we will make sure that that does not happen in Singapore.

As the Minister for MCYS, those are the dilemmas and the trade-offs that I have to make.

[ilovecck]

I think Dr Lily Neo said something similiar to this before, not about inflation but pertaining to the food prices.

Hi ilovecck,

just wondering are you talking about this exchange between Dr Lily Neo and Dr Vivian?

Dr Lily Neo: Sir, I want to check with the Minister again on the strict criteria on the entitlement for PA recipients. May I ask him what is his definition of "subsistence living"? Am I correct to say that, out of $260 per month for PA recipients, $100 goes to rental, power supply and S&C, and leaving them with only $5 a day to live on? Am I correct to say that any basic meal in any hawker centre is already $2.50 to $3.00 per meal? Therefore, is it too much to ask for just three meals a day as an entitlement for the PA recipients?

Dr Vivian Balakrishnan: How much do you want? Do you want three meals in a hawker centre, food court or restaurant?

Dr Lily Neo: It is cheaper to cook for one person.

Dr Vivian Balakrishnan: It is cheaper to cook for one person. The point I was trying to make is that every family will have different needs and preferences. I am not by any stretch of the imagination claiming that what we are offering as public assistance is a generous package. I am not saying that. But what I am saying is that it is enough, by and large, for most families to get by and, for those who have needs over and beyond that, there are other means to do so. If every one was starving on this amount that we are giving and is totally devoid of any other sources of help, Pelangi Home would be overcrowded, and I would be building many, many more Pelangi Homes. So, in the end, the proof of the pudding is in the eating. Yes, any one of us, if we search hard enough, may be able to find a family or people who need additional help. But I would also say that any one of us, if we really put our minds to it, is capable of finding those additional sources of help. What I am designing is a system in which public assistance can and should be complemented by other sources of help. I think we can continue arguing this and we can continue finetuning the exact amount that is needed. But let us just bear in mind the fact that the system is set up with a certain amount of tension, and it is a healthy tension.

In fact, I cannot resist saying that I am very disappointed that in the whole debate on MCYS, the Opposition MPs have not participated in this, and I have actually faced real probing questions more from the PAP MPs and the Nominated MPs. Perhaps, they totally agree with my policies, philosophy and programmes.

Dr Lily Neo (Jalan Besar): Mr Chairman, the Minister yesterday announced that PA allowance would be increased by $30 a month, from $260 to $290. The Minister did not answer my two questions on whether PA allowance commensurates with inflation and whether there has been a study done to ascertain whether PA allowance serves the needs of the recipients.

Sir, my single constituents told me that they needed to skip one meal a day to live on the $260 per month. And now, MCYS is going to give them $1 more a day. But, Sir, $1 a day will not be able to buy them one meal a day in any hawker centre.

Dr Vivian Balakrishnan: When we did this review of the Public Assistance rates, we took into account both the impact of inflation since the last review as well as the impact of the GST increase. There will always be arguments about whether a sum that we have decided is enough or not. As I said yesterday, frankly, one limiting factor must be that the sum that we give through Public Assistance cannot be so generous as to erode the work ethic. As I said again yesterday, if you take a family with three children, the amount they can receive from Public Assistance - I do not have the exact figure now - I think exceeds $900. At that level, you are getting dangerously close to the earnings of a low-wage worker.

Having said that, I think there will always be unique circumstances when some families find that that sum is not enough. And that is where the community and grassroots organisations have to come in and look for those mitigating or exceptional circumstances and more help is necessary. So the key point is that as far as the entitlement portion is concerned, I will admit that that is set low. But have flexibility, have organisations and individuals who are able to assess special needs of special families and then respond accordingly. That is the system which we have.

The alternative is to set the entitlement at a very high level. But once you do that, I think you would not have only 3,000 families on Public Assistance, you will see many multiples of families.

Dr Lily Neo: Sir, the Minister said that the increment was done in such a way so as not to take away the work ethic. Surely, this argument cannot be applied to PA allowance recipients because this is a group of people that can never work either due to poor health, old age or disability. Therefore, this work ethic concept does not work. The other point is that the Minister said that this group of people can depend on grassroots organisations and others. Am I to understand that MCYS cannot provide adequately for the most vulnerable group of our society and that PA recipients must go and seek help from others? He said yesterday that in this globalisation, he would ensure that increasing number of Singaporeans would not feel left out and that he would provide more assistance to the poor to cope with the higher cost of living. May I ask him: should providing three meals a day not be a priority of his promise?

Dr Vivian Balakrishnan: I take the Member's point that for Public Assistance, we have fairly strict criteria. But having said that, I am still not willing to go to the other extreme and say that since we have got strict criteria, we can afford to be generous. This is the same point that Mr Seah Kian Peng raised yesterday. I have sympathy for that point, but I would still appeal to Members of this House to exercise caution.

Her second question was: why must they go and seek help? Why must they ask for it? I would like to remind her again of my speech yesterday when I said that if it is going to be low on entitlement and high on flexibility, then we do want some effort to be exerted on the part of the recipients. Yes, we do want them to go and ask for help. But I also said yesterday that, let us not get too carried away and reach a stage where if someone does not know or does not want to ask for help, we ignore that person. I have also asked the community organisations, neighbours, voluntary welfare organisations and the rest of us, if we see someone who needs more help, enquire about that person and organise the help.

Let us talk about meals since the Member has phrased her question specifically about three square meals. You and I, in fact, all of us, know that there are programmes for meals at home. There are organisations which specifically bring bread and rations, many of which are bought from FairPrice, gratitude to Mr Seah as well. But there are schemes like this. That allows me to say with a clear conscience to both the PAP and the Opposition MPs that nobody in Singapore needs to starve, nobody needs to be deprived of healthcare, and nobody needs to be deprived of a roof over his or her head. If someone indeed is so destitute and is starving, we have other means and other safety nets for them. We can bring them to the Pelangi Home, and I would invite all of you to come to Pelangi Home and see the standard of care, the facilities, the food and the way we look after them.

So, please do not run away with the misconception that Singapore is a cold, heartless place where, because we are so strict on criteria and entitlements, people are starving, freezing and denied the dignities of life. All I am asking Members is just to bear these principles in mind. Entitlements will always be low, ie, the person has to ask you for help and not bang on your table for help. We will always need the many- helping-hands model, not because the Government is broke. We can always do more and we can always raise GST further. But that is not the tone of the society that we are trying to create. We are saying that, yes, there will always be problems in society and it cannot be only the Government to do it because, if you want the Government to do it all, it means higher taxes and a large bureaucracy. As we can see in many other countries who have created elaborate welfare-states based on the best of intentions and the softest of hearts, such systems ultimately failed, they are not efficient and they are going to run out of money. We will see that happen in our lifetime, but we will make sure that that does not happen in Singapore.

As the Minister for MCYS, those are the dilemmas and the trade-offs that I have to make.

haha yes, Fiesty lady (in a good way)

[Dennis Ng]

One sure way to lose money is to go against the market.

Why go against the market, it is like trying to prove you're stronger than nature's wind...going against the wind direction.

This fund manager may have many years of experience and run a fund US$4 billion, but guess she only knows how to invest based on FA and does NOT look at TA....what a mistake, it's like looking at the World with one eye. She said that it seems like the stock market has "invisible hands", but she does NOT know how they operate, just know that they can move market up or down...

In my seminar, I teach people how to Know whether the "invisible hands" is in the market, whether the "invisible hands" are Buying shares or Selling shares...

As I said, don't over-estimate Professional Fund Managers, just becos they are Fund Manager does NOT mean they really better than us in investing. An average person learning the Right Methods and Strategies can beat the performance of fund managers.

Cheers!

Dennis Ng

女股神刘央抛出23亿港元买股 霸气高呼越跌越买

2012年05月17日11:47
来源：中国经济网


　　西京资本控股有限公司主席兼投资总监刘央，在香港打拼的北京人，她钟爱中资民企股，比尔·盖茨基金作为非银行机构QFII在中国的投资，2/3由西京打理，也就是说刘央是这位世界首富的“管家”之一；在2011年之前，她的出色表现为其赢得了“女股神”等称号。

　　据香港《苹果日报》报道，港股大市仍处于弱势，女股神刘央豪言不用怕，并继续“牛央”上身，透露今年共抛出3亿美元买货，更高呼“我这两天都照买！”

　　恒指八日已经连跌1574点，基金股洗仓潮持续，高达96只股份创出52周新低，早前被质疑账目的人和，9个交易日累跌三成。刘央管理的西京投资持有人和约6%股权，身在北京的刘央通过电话回应查询时，极力否认正在沽货，更霸气不失地高呼：“好多人都以为我卖，我为什么要卖呢？我绝对没有卖！我还在买，我告诉你。”她认为人和的基本面没有问题，更是地产股中最便宜的，不会听信谣言，亦正不断低吸其他股票，直指“我信心十足，所以我可以很负责任地跟你讲，从2012年到今天，我放进市场3亿美金……我就每天买，它越跌我越买！”

　　不过，受累一轮洗仓风暴，刘央所主理的西京投资中国基金今年至本周一，录得负回报10.8%，大幅跑输恒指同期的7%升幅，单在过去一个月已蚀9.8%，她持约12.7亿股的人和最重伤，今年累跌62%，市值蒸发6.8亿元。

　　刘央昨表示，投资中国要看经济周期，不是单看“May or June”，目前的“淡风”只是信心危机，认为以现时资产市场的低水平，没理由不买，“为什么不买？第一，你就没信心；第二，你就没钱”。

　　事实上，其他星级基金在经历5月的跌市后，回报全线大缩水。有“股坛金手指”称号的谢清海，旗下惠理基金本月劲蚀约7%，旗舰基金回报由上月底的9.8%，大幅放缓至本周一的1.9%；欧洲股神安东尼·波顿主理的富达中国特殊情况基金，截至上周五止今年每股资产净值增4%，相对3月初时的17%大幅下降。 (来源：扬子晚报)

[Dennis Ng]

Study Hard, Get Good Grades, Get a Good Job" Advice that people of my parents' era used to dish out no longer works.

With rising cost of living, it is very difficult for anyone to reach Financial Freedom or to retire with a comfortable living by age 60 or earlier.

What you need is Financial Education, learning how to Plan, Manage and Grow your money...by learning HOW to do so, you might even reach Financial Freedom before age 40 (I'm a Real Life Example of a person doing so by age 39, 3 years ago) even when I only earn an Average Middle Class income with a Housing Loan to service and 2 children to feed.

Neither PAP nor the Opposition can help you do this ie. reach Financial Freedom. The only person that can help you is you yourself by learning and increasing your Financial Knowledge.

Cheers!

Dennis Ng

A DEGREE AND DEBT
Now that Chad Larsen-Stauber has a teaching degree, the inevitable question races through his mind: What will come first — a job or the bill for the first installment on his hefty loans?
The 26-year-old who just received his master's degree in education knows that in three months, he'll have to start paying off debt of about $100,000.
"This is going to be looming over my head the next 20 years," Larsen-Stauber says. "You've borrowed all of this money and it just comes due all of a sudden. When you're already going into a low-wage job and you know that a third of your salary is immediately going to be eaten up ... that's really frightening."
But not unexpected.
Larsen-Stauber is working with loan companies on payment plans; about 75 percent of his debts are from grad school. It seems overwhelming, but he says, "there never has been a regret in my mind. I knew when I started this program, I was 100 percent sure. ... If there was one job that I ever wanted, it was to be a teacher."
Larsen-Stauber realized that three years ago when he received a bachelor's degree in communication. On graduation day, his parents posed a question: "'If you had to work the rest of your life and you never had to worry about money, what would you do?'"
The answer was easy. He wanted to work with kids, having done so at a YMCA after-school program and as a camp counselor. Teaching, he thought, would come later, so he applied for entry-level jobs in marketing and advertising.
It was 2009 and no one was hiring. Even family and personal connections didn't help.
Potential employers, he recalls, were blunt. "They'd say, 'We have the ability to be selective. The market is flooded with people with tons of experience and several degrees. We can't just hire people right out of college.' It was discouraging."
Larsen-Stauber moved back in with his parents in Chicago's western suburbs, became a teacher's assistant for a year, working with autistic and Down Syndrome students in a middle school. Then he enrolled at the University of Illinois-Chicago for a graduate degree.
As a teacher, Larsen-Stauber expects his salary will put a crimp in his lifestyle. (His father and grandfather are lawyers involved in real estate.) It'll affect everything, from where he lives to his dreams of global travel. "The possibilities that seemed limitless at one point are very downsized," he says. "In the end, it's a small price to pay for what you want to do."
He's now finishing his student teaching, working with kids with learning and behavioral disabilities. By fall, he hopes to be a Chicago public school teacher. And he's already thinking far ahead to pensions and retirement. "It used to be just an afterthought," he says. "Now you have to be wise and plan for yourself."
More immediately, his top priority is finding work. "A lot of people are saying, 'Take whatever job you can get. You can do anything for a year.' ...I'm going into this with an open mind. What I love to do is teach, and I will teach anywhere at this point."
___
THE BIG LEAP
Meagan Cooper keeps an eye on Georgia's unemployment rate, knows job competition is fierce and understands it won't be easy for a high school graduate to navigate her way to success.
But the 18-year-old high school senior is convinced that work is a better fit for her than college, at least for now, so she's begun applying for jobs in various places, including an art store, a construction company and a business that sells kitchen appliances.
Some friends are going to college and many others are joining the military — something she considered — but her future is up in the air.
"Yes, I worry a lot about it. I'm scared," she says, "but I believe that's the best thing for me to do."
She faces a dramatic transformation. "All of a sudden you're going from being a kid in school to out on your own and not knowing what to do," she says. "I'm just afraid I'll get out there, try to do my best and end up getting lost along the way ... that I'll get wrapped up in the outside world and I won't want to go to college."
Cooper says she's leaning toward a technical college, instead of a four-year school. She has two passions: engineering and design and art, especially painting, but hasn't decided which one she'll pursue. Until then, she says, being a student makes no sense.
"I'm just plain worried about wasting time and money," she explains. "I don't want to rush into college, not knowing what I'm doing."
Especially these days. "My view of the economy is it's horrible right now, which is another reason not to go to school," she says. "I worry I wouldn't have enough money and I'd have to take out school loans. I'm concerned I'd get in debt and ruin my credit at an early age."
Cooper says her mother has urged her to continue her education, fearing she'll meet a guy, get pregnant and abandon college plans. Her father, who lives in Florida and has set aside money for her schooling, recommended she list the pros and cons of college and work. After she did, her choice was clear.
"He tells me I deserve the best and go after it," she says. "I'm trying to figure out what is the best, what do I want to become."
In a perfect world, she'd like to paint and travel. In real life, she's a pragmatist.
"I'll have to go back to school eventually, I know," she says, "if I want to have something better in life."
___
A SECOND DIPLOMA — DECADES LATER
When Doreen Groshan started her job search after devoting 15 years to raising her two sons, she was armed with credentials:
A bachelor's degree in community health. A stint as a Peace Corps volunteer in New Guinea. Work experience at a health clubs, a weight loss center and managing a group home for mentally disabled adults.
None of that mattered. Potential employers, she says, saw her as a homemaker, an "oddity" whose choice was almost "irrelevant in modern times." Groshan soon reached a conclusion: A 1985 diploma wouldn't open any doors.
"College degrees seem to have an expiration date," she says. "There's a feeling you've done nothing in the last 15-20 years. There's a very negative view of stay-at-home moms, apparently."
Groshan wanted to work, partly for the job, but also to start building a nest egg for herself and her husband. And so, she decided she needed to adapt.
"Instead of feeling sorry for myself," she says, "I thought I had to reinvent myself. I needed to get more training and more skills and show I have qualifications to get back in the job market."
She enrolled in Blackhawk Technical College in Janesville. It was affordable, just 10 miles from home and offered a chance to be a physical therapist's assistant, which suited her and has good job prospects. (All of last year's graduates found work; the average salary is about $23-$24 an hour.)
There was one downside: Since the program is small, Groshan had to wait three years for an open slot (admissions will be competitive starting next year). She didn't remain idle, though. An avid runner who clocks 6 miles a day, Groshan became a track coach at a local high school.
Like many mid-life college students, Groshan was initially scared of studying, memorizing and taking tests.
"I thought, 'Oh no, how can I possibly do that?' I had to take physics," she recalls. But her age worked in her favor. "I'm a much better student that I was at 20," she says. "I don't have the distractions. My brain works fine."
To say the least. Groshan had just one B in two years.
Her impressive academic record may help when applying for jobs, but Groshan anticipates her age — 49 — could be an obstacle. She noticed that while attending a meeting of a physical therapy organization with classmates, mostly in their 20s.
Job recruiters "would not pay attention to me," she says. "I was the last person they addressed. I suppose they're wondering why someone my age is even a student."
Maybe, she says, they thought she was a professor, but either way, she says, "You've got to have a little thick skin."
But it was revealing, too.
"I think it made me realize the truth of the situation: People do look at youth and its importance," she says. "But age and experience have advantages, too. If asked the proverbial question, 'Why should we hire you?' I would say you don't have to worry about day care, child care. I don't have school events I have to get away for."
"Older workers have a good reputation for a strong work ethic and being dependable," she adds, "I need to work a little harder to show why people should hire me."
Groshan, who graduated May 12, will take a national written licensing exam this summer and start sending out resumes, anticipating an offer, despite these tough times.
"I think something is going to work out," she says. "I'm confident it's going to happen."

[Dennis Ng]

someone asked me whether he should sell away his Noble shares now, share price right now is about S$1.08.

Well, if a person knows how to invest, know how to read charts and do Technical Analysis, he/she would have arrived at the conclusion that when Noble share price broke below S$2.05, it is in a downtrend and if one owns the shares then, should have cut loss then, and avoided losing another S$1 (or about 50% additional loss).

Anyone who didn't own Noble shares, should NOT have bought when share price fell below S$2 becos you don't buy a share when it is in a downtrend, becos you won't know how low prices can go, if you think S$2 is cheap, it can go to S$1.08, as this Real Life Example shows.

Learn how to Invest to avoid making such investment mistakes in future, and avoid making such Unnecessary losses (unnecessary since by having knowledge, one could have easily avoided the loss).

If you want to learn, I teach, but no point asking me for Answer (to buy or sell on this stock) becos feeding you a fish will only keep you full for one day, tomorrow you will go hungry again. Why not learn how to Fish? (Invest) and you will never go hungry again. If you choose NOT to learn how to invest, you would keep repeating such investment mistakes again and again, and losing money again and again, UNNECESSARILY.

[Dennis Ng]

I really cannot understand it. Many parents can easily spend S$300 per month or even more on their children's tuition and/or enrichment classes, or S$3,600 or more per year just to help their children pass some school exams. However, they are NOT willing to spend S$3,000 to learn how to invest and how to Reach Financial Freedom.

You start to get Richer when you start to make Wise decision and know which is a good deal and what is worthwhile or not worthwhile. If you cannot even differentiate this, how can you ever make any wise investment decisions?

There are 2 types of School Fees. No. 1 is don't learn how to invest, pay "school fees" by losing money in investments, eg. by buying Noble at S$2 when it is clearly in downtrend and see the price fall to S$1.08.... No. 2 is pay a pre-determined School Fee to learn how to invest. Which school fee you choose to pay is really up to you. Which is more expensive, you go figure it out yourself.

Of course, we must invest in our children, I have 2 children too. But what I mean is that if one is willing to invest in our children, the question is why is one not willing to invest in your own Financial Education? Once you learn, you can even teach your children. And if one thinks that helping one's children get a good degree will really help them, one needs to really re-think.

Frankly, even if my children cannot study well and get a good degree, I'm NOT worried at all, becos I know that if I teach them Financial knowledge, they can reach Financial Freedom regardless of their education qualification. In Singapore, many educated people in their 40s got retrenched and struggling financially, we must wake up to this reality, and not pretend it will not happen to you or to your children.