Yahoo! Answer: Are the GST credits enough to help you cope with the GST increase?

[THOA]

We have to market Singapore, like it or not, cos it's the only way to sustain our economy. We have no natural resources. Our advantageous geographical location works in 1819 but now with technology and industrialisation, it is quickly becoming obsolete. We have no choice but to rely on foreign investments. That is the current strategy that Singapore is adapting: to be THE hub for nearly everything you can think of.

Well, if alternative energy is not in our long term plan, then it is complete hypocrisy on our part to be hosting this in November: http://www.iew.com.sg/

or even this in March: http://www.iseas.edu.sg/iframes/27mar08.htm

Still, the strategy is the same: "we are the hub of everything that is trendy, current and of international interest eg Energy conservation, IMM, F1, Youth Olympics etc". All of which require expenditure on our part, and that is digging into the national monetary resources that could be used to explore alternative economic endeavours.

Keep in mind that we are in the midst of a global economic slowdown and inflation (as fondly emphasised by a Softie brother of ours), so we are digging deeper into our own coffers in order to meet the excellency standards that we have been trying to maintain. Means we are spending more money on more or less the same standards.

Is it then a productive expenditure on our part? Or could that expenditure be used for something that has more long term returns eg researching and eventually producing Singapore patented technology that would be viable and valuable that will spurn the interested of foreign countries to invest in.

Of course, such an idea is a long way from being manifested into reality, simply because we ourselves are not giving enough interest and support on local products. No interest or support means no commercial viability for investors to put money into it, hence no attention given to it.

 

[soft]

The GST increase is from 5% to 7%? A 2% increase?

If I spend $2000 per month, that is a $40 increase? In 12 months, that means $480 increment. Hmmm... I think the credits is enough to help me cope with the GST increase.

I am not good with numbers. Help me out if i calculate wrongly.

 

[THOA]

If you are looking at it as an offset perspective over the next 12 months, it would be enough, yes.

Looking at the GST as a whole, you spend $2000 a month then you are paying $140 out of that $2000 on GST. So technically you have $1860 for actual expenditure.

12 months worth of GST = $1680

What can that $2000 buy currently? And what can that $2000 buy you 5 months from now, or even 12 months from now?

And, what is the economic outlook for the year after? What will that same $2000 buy us? Will GST increase by another 3% to round of a nice figure of 10%? Another offset package in the works? So we are really gonna be that dependent on packages like this? Or should we look into an alternative?

 

[empihsrow]

Well, if alternative energy is not in our long term plan, then it is complete hypocrisy on our part to be hosting this in November: http://www.iew.com.sg/

or even this in March: http://www.iseas.edu.sg/iframes/27mar08.htm

I'll quote from IEW.

"These include the 1st Meeting of the International Advisory Panel (IAP) on Energy, Singapore Energy Lecture, Singapore Energy Conference (SEC), Singapore Electricity Roundtable (SER) as well as various other energy related activities such as exhibitions, seminars, site visits to oil refineries, gas works and power stations.

To keep energy options and strategies current and cognisant of global realities, the International Energy Week will be engaging international thought leaders on global energy issues through open discussions and learning."

I do not seriously think that alternative energy sources are really part of their plan. It looks more like energy conservation.

By the way, GST offsets are never meant to be a long-term solution for anything. It just gives us some respite, that's all. What's the point trying to argue that the offsets are really meant to help?

Of course they help. It's more of how they help than if they do help.

 

[RoRK]

We have no natural resources. Our advantageous geographical location works in 1819 but now with technology and industrialisation, it is quickly becoming obsolete.

Our strategic geographical location, for sea-trade, is one of the most important natural resources that any country can ever have. Make no mistake!

From trade comes finance and from there it is up to the government to do their part. Ours have done a good job. But so has Hong Kong and many other port-cities in the world.

It's just that we are small and the benefits of having a strategic port can be easily passed on to other sectors of the economy.

As an aside, I hear from relatives and friends that have migrated on how they debate with fellow Asians that have also migrated and how ex-Singaopreans like to talk big about how well Singaporea has done.

WHen they kenna whack, left-right and center, and rightly so, IMHO, on how small Singapore is and how difficult it is to develop a land and its people, a size hundreds of times bigger, the ex-Singaporeans, my relatives then come to their senses.

Don't be proud of ignorance and silliness, we are small. It is easier for us, especially so with a wonderful natural resource such as our port.

 

[THOA]

emphisrow =

Then it is up to us to push for such endevours to be looked upon, because we are dealing with our future here, as well as our children's future, and our children's children's.

The ST papers today (Home | H4) covered MM Lee's dialogue at the Nomura Forum, which he made some points that interest me.

He hints about possible policy changes to mirror Swedish policy of free childcare, paternity leave, and government paid nursery schools, which could mean higher taxation to accomodate for such a budget.

It is both good news and bad news for us, but I personally am in favour for it. At least I know that I have the assurance that my children have a good and equal start on education and benefits of family care and nurture in his or her early years. In fact I think it is a benefit that can and should be enjoyed by everyone, poor or not, so that there is equal opportunity for all. A more focused, targeted aid can then be applied up the life chain, where child becomes teenager, and teenager becomes adult, and adult becomes an active contributor to the Singapore economy.

But that will be just one expenditure that the taxes will be paying for. I would like to know and see more of whereelse my tax money is going to, should that eventually happen.

He had mentioned that lowering the demand for oil in the future could lower the prices of today. He went on to say something that I completely agree (see? I don't disagree with everything the governement say): that the real test was whether the world governments, in particularly the US, were serious about wanting energy independence.

I quote, "They talk about it, but are you serious? You legislate, as I say, all cars in America by 2015 must have (hybrid technology). I'm Saudi Arabia, I'm Kuwait, I read this, I get my advisers to come together and calculate: what would be the price of oil then?

"So really it's within our capabilities to bring the price of oil to a more reasonable level. But as long as we talk about it and we still buy SUVs and drive around, (then oil-producing states say: 'Oh, I will get more for my oil in five years time. Keep it in the ground. I see no reason why I should sell it now when I can get more next year."

With that in mind, my friends, I see the G-8's MEM summit as a total failure, with sides not wanting to commit on specific numerical goal or target year, each one (developed and emerging economies) pointing fingers at each other to be the one to legislate a concrete goal or target first (afterwhich, they enjoyed a sumptious and exquisite meal prepared by master chefs, a fact blatantly covered by ST yesterday).

 

[RoRK]

The price of oil today is set largely based on a price set by the oil cartel! Demand, especially from India and China (more so because of the 2008 Olympics) has a huge factor for blowing things out of everyone's imagination (well mostly everyone) but only because the oil cartel thinks it's a good thing.

Asking people to sell their cars or to park their cars at home to help keep oil prices down is not going to work.

Free childcare? haha! There will always be upmarket childcare centres. How about free education right up to one's first university degree - provided they qualify? How about lower transportation fares so that folks can go to work and to school and have change to have something to nourish themselves with? How about getting rid, totally, water and petroleum-product related taxes?

How about throwing away the CPF-affixed annuity fund! Aaaaaccckkk! That's the most ridiculuos thing I've ever heard! Your CPF is kept and only given to you, in a very small amount, and only when you reach 85 years old !!!!! BOLLOCKS! HELLO! I want to kill myself when I reach 84! Can I have my money when I'm like, errr, 55!!!!!!!!!!!!!!!!!!!!!

Sorry ah. I want to go to Thailand (location may change) and use that money to start a school for orphans!

And howzabout removing GST from essential goods and books and other items related to education????

Dey! Long way to go lah.

 

[THOA]

Our strategic geographical location, for sea-trade, is one of the most important natural resources that any country can ever have. Make no mistake!

I am not disputing that fact. Because of our geographical location, we had the advantage of a good start.

But technology has made the world smaller. Nowadays, business can be done with many different means and ways. I am making a remark that, our geographical advantage for sea trades, can no longer be the only means of economy, thus we HAVE to look into attracting foreign investment by becoming a hub in other ways. Thus (and I am trying my best to answer empihsrow's question through this) that, yes, there IS a need to constantly market Singapore.

Also, I agree; Singapore has done well because of how easy it is to manage a small country. And no that is not an excuse for ignorance and silliness. In fact, before I posted the Yahoo! Answer question, I was reading through the answers given, and I conclude that most of the answers are just ignorant whining and complains.

But despite all that, we are definitely feeling the brunt of the price increase through a series of events that perceptibly seem to make matters worse: GST increase, inflation on food prices, oil prices, additional ERP gantries, taxi hikes etc. It all adds to frustrations, which is understandable.

What doesn't help at all is to have all this in the midst of preparing to host very huge international events which sees Singapore's expenditure at very high levels. To us, it makes sense to cut down on expenses rather than spend more especially in times like this. Unfortunately enough, these events were set in motion before the price hikes got into effect, so we cannot immediately drop these projects just to focus on inflation. This is a test of our tenacity as a country. This is me speaking as a Singaporean.

However, as an individual person, I still can't help but be concerned about what is being spent on, because that is partially my money being used for events that will have a long term yet non-immediate effect on Singapore's economy, rather than an immediate cushion for an increasingly alarming trend. Most of us are able withstand this (hopefully short term) blow, but some fellow Singaporeans are genuinely finding it tough even now.

There is no immediate solution to this problem, I know. To focus on one would mean a sacrifice for another.

Perhaps we should then look into a global perspective on things, and focus on trying to find suggestions for solutions on a macro level, which is gonna be even tougher.

 

[THOA]

How about throwing away the CPF-affixed annuity fund! Aaaaaccckkk! That's the most ridiculuos thing I've ever heard! Your CPF is kept and only given to you, in a very small amount, and only when you reach 85 years old !!!!! BOLLOCKS! HELLO! I want to kill myself when I reach 84! Can I have my money when I'm like, errr, 55!!!!!!!!!!!!!!!!!!!!!

Sorry ah. I want to go to Thailand (location may change) and use that money to start a school for orphans!

Hah! This one is a topic worth a totally different thread.

So you in favour of a drastic change rather than slow steps. I would want to see that too, if I have a choice. But there's gonna be drastic measures to counter balance those changes that we are not gonna like, either, unless a someone up there can come up with a win-win solution.

Yeah, I know long way to go...

 

[RoRK]

bro THOA, how is it that technology has made sea and even land ports obsolete - as you have thrice purpoted?

We still receive goods via land and sea. YOu can order stuff from the Net but it still reaches us and everyone else in the world via land or sea.

As for the events, it's really no big deal to me. It doesn't really cost a lot of money to host these events, And when compared to our country's riches, it's even less of an issue.

It does help us to stand out amongst our neighbours and that is good and positives can be had for many years to come. It's a small issue. There are bigger issues.

 

[THOA]

Maybe "obsolete" is too strong a word to use. Maybe I should use the word "competitive"?

What I am trying to imply is: Is our geographical location still giving us the competitiveness over other port-cities in this present day? I personally think that it is... presently. We are still at an advantage.

However, will that edge be taken away from us because of the ever increasing advancement of technology and development that can be used by other ports in this region to make them as good or even better than us? It is a possibility that can happen. So, hence (I'm repeating myself again... I know. It's annoying to me too) the need for Singapore to market itself again and again for the good of the economy.

So yes, I do see the positives of these events being held in the long run, at least in the economic sense of it. I am not disputing it. Just that the timing, and the expenses, and the immediate economic and environmental impact... I can't help but feel concern. But then again, I am just another invisible individual.

I would like to know more about the bigger issues that you are talking about. Perhaps you can direct me to a few that I can take possibly look into and find out more from there.

Wah... 8 pages and 70 replies. I thought this would be over in 4 pages :?

 

[guitarsan]

The Tak Boleh Tahan Protest

http://sg.news.yahoo.com/rtrs/20080711/tap-singapore-protests-c3bb44c.html

Kudos to Dr. Chee! The local media may portray him as an idiot or nut case, but he certainly got the guts and conviction to challenge and protest against the autocratic and insensitive government. The sad thing is many S'poreans actually tak boleh tahan the current price increases and the government's new/higher imposed taxes. But many choose to suffer in silence, or over-analyse things like why the tax hike is justified......like all obedient citizens should.

"Protests in Singapore are rare and an assembly of five or more people requires a permit from the police. Singapore says it needs tough laws on assembly for the maintenance of peace and stability."

Yeah, like real. Btw, we cannot gig with a 5-piece band anymore, because we need a permit from the police in case we jeopardise the so-called peace and stability.

 

[empihsrow]

THOA bro, I find it very unhealthy to be always the one trying to make a stand and be ahead of others. I mean, what do you really want to gain from it? Singapore might dwell all of its money on R&D and create new technology, but at the end of the day, we have a much more serious question to answer. Do we really want this? Do we really need this?

I hope Singapore will not go the Sweden way. Don't be crazy. We are not as rich as the Swedes and although it's a tried-and-tested method, I think that Singapore will not be able to replicate the welfare states. Look at Singapore. It's totally reliant on the global market.

If a financial crisis hits a welfare-state Singapore, I tell you we'll be doomed.

 

[THOA]

Do I seem like I am trying to to stand and be ahead of others? Do I seem like I am trying to gain something out of this? If that is the case, then I am sorry. But it is without any intention for gains that I started this thread, and still without any intention of gain that I post even now. The only gain that I got thus far is your thoughts, feedbacks and insights on an issue that I feel very strongly about, and from what replies I get I have slightly better perspective on things.

I will be the first to admit that I am ignorant, and still I say I am ignorant. I want to put my ignorance to an end. I am glad to say that through the replies on this topic I've gained a bit of more light on 'reality', so to speak. But if I am causing any discomfort or misunderstanding from what I have posted, I understand and will keep my concerns to myself, and ask that this thread cease to exist.

 

[empihsrow]

Do I seem like I am trying to to stand and be ahead of others? Do I seem like I am trying to gain something out of this?.

I think you got me wrong. I mean Singapore, not you. I thought we were talking about... Technology advancements?

 

[shinobi]

you all should realise sooner or latter that the straits times deserves more credit than being merely a government propaganda machine. if you read between the lines, ST is quite damning.

LKY wants the swedish level of welfare. how is welfare financed?

TAXES

welfare includes welfare for the elderly. but does LKY have some kind of motive or agenda for an increase in welfare spending? such as an elderly loved one in critical care now?

 

[THOA]

I think you got me wrong. I mean Singapore, not you. I thought we were talking about... Technology advancements?

Ah okay. Sorry, bro. My bad. I read your reply wrong.

Please accept my apology.

 

[empihsrow]

It's okay man.

 

[amnesiac]

Let's all listen to Megadeth's Peace sells..but who's buying! =D