Financial Planning Advice

Stocks 'gain from crisis'

2009-10-19T19:20:00.002+08:00

Sources: Straits Times Oct 19, 2009

Stocks 'gain from crisis'

More investors turn to equities due to low bank rates and fewer options

By Alvin Foo, Markets Correspondent

THE equities industry has gained tremendously because of the global financial crisis, said the head of a key stockbroking company in Singapore.

Investors - faced with near-zero bank deposit interest rates and fewer alternative options for their funds - have turned to stocks in a big way.

This trend is set to continue, even as Western funds are expressing more interest in Asian stocks.

DBS Vickers chairman and chief executive Edmund Lee told The Straits Times: 'Our industry has benefited in a very big way, because there are only two asset classes that have performed in the last 12 months - equities and property.'

His company was named the best retail broker at the Securities Investors Association of Singapore (Sias) awards earlier this month.

In Singapore, the surge in the Straits Times Index (STI) bears witness to the renewed interest and liquidity in stocks. Last week, the index hit a 13-month high, crossing the 2,700-point mark. It has recouped all of the losses incurred since the sharp selldown following the collapse of Lehman Brothers.

Minibonds payback

2009-10-01T23:12:00.001+08:00

Source: Straits Times Oct 1, 2009

Minibonds payback By Francis Chan

INVESTORS of Lehman Minibonds who are still holding the credit-linked notes should get some money back in 'a few months', said PricewaterhouseCoopers Singapore (PwC), receivers of the toxic investments on Thursday. The announcement will bring some cheer to investors who were unable to come to settlements with distributors that sold the products. It also allays fears that the process to recover some of the hundreds of millions of dollars lost would be bogged down in lengthy cross-border legal wrangles. PwC said the receivers have taken control of the underlying collateral of the notes and have started the process of realising the residual values before paying noteholders. The collateral consists mainly of corporate bonds held by two special purpose vehicles in the Cayman Islands. The receivers reached an agreement recently with Lehman Brothers Special Financing (LBSF), the swap counter-party in the Minibonds programme here. This deal clears the way for the next step, which involves the receivers appointing a disposal agent - believed to be a global investment bank - within the next few days. The agent will begin liquidating the underlying collateral so that certain payment obligations, including some due to LBSF, can be made. The balance of the funds will be distributed to noteholders. The amounts they receive will depend on what series or tranches of notes they are holding. PwC said the process will 'take a few months to liquidate the collateral and determine the actual value which can be realised'. Although PwC could not say when noteholders might get some money back, or how much they will get, due to confidentiality obligations. 'This settlement provides certainty to the noteholders that at least some of their initial investment will be recovered,' said Mr Dominic Nixon, a partner at PwC and one of three appointed receivers from the audit firm. The Monetary Authority of Singapore (MAS) said the deal with LBSF does not affect any claims individual investors are making against the financial institutions that sold them the notes. 'Investors who accepted partial settlement offers ... would have retained a portion of the notes, and will get to keep the residual value arising from those notes,' said MAS on Thursday.

Close to 12,000 opt for CPF Life

2009-10-01T19:28:00.000+08:00

Source: Straits Times Oct 18, 2009

Close to 12,000 opt for CPF Life

By Jamie Ee Wen Wei

It has been a busy month at the Central Provident Fund (CPF) Board.

Members have been flooding its offices and phone lines with questions about the new CPF Lifelong Income Scheme For The Elderly (CPF Life), which was opened last month to those aged 55 and above.

Almost 30,000 people have walked into its five service centres to ask about the scheme, said Mr Tey Chee Keong, deputy director of CPF Board's lifelong income department.

Payout of $360 a month on retiring

In two years' time, when she turns 62, Madam Yeo Ai Kiaw (above) will get a payout of about $360 a month from her CPF Life Basic plan.

The plan, which has the lowest payout among the four options, will allow her to leave more money to her beneficiaries when she dies.

'My husband and I are now living with our son. He and his wife take care of all the household bills. I don't have to worry about anything,' said the sprightly 60-year-old.

Preparing himself for a longer life

Mr Palaniappan Kannappa is not afraid of death but he is worried about 'living too long'.

'The Minimum Sum in my CPF will dry up in about 20 years. What will happen if I live longer than that?' he said. So the 59-year-old accountant started shopping for a retirement policy a year ago.

Around that time, he read about the CPF Life plan, which was introduced to the public last year.

Mr Cheng Yew Fatt wants to remain independent in his old age

Mr Cheng Yew Fatt wants to remain independent in his old age.

For this reason, the 55-year-old, who is unemployed, signed up for the CPF Life Plus plan last month.

It provides him with a higher monthly payout than the Life Balanced plan, but leaves less for his beneficiaries. It suits him because he feels his three children are already well protected financially.

His savings will run out in 5 years

Mr Lee Poh Lee is a family man, but last month, he signed up for the CPF Life Income Plan, which will give him the maximum payout from his CPF from next year.

The 63-year-old, who runs a crane rental company, decided on this plan because his CPF savings are low.

'I've only about $19,000 in my CPF so it'll run out very fast.'

He's not signing up

When Mr Christopher Seet turned 55, he invested $70,000 from his CPF in an American International Assurance (AIA) annuity plan.

Early this year, he started getting a monthly payout of $562.

Now 62, Mr Seet does not intend to sign up for CPF Life. He said it does not bother him that the monthly payout he is getting now will last for only 17 years, unlike the CPF annuity scheme, which is for a lifetime. 'What is important is the present. If I really outlive my savings, then I'll just have to find some way to make ends meet.'

More flexibility with new insurance law

2009-09-22T23:27:00.003+08:00

More flexibility with new insurance law

Policyholders can now change nominees, but law not retrospective. -ST Source: Thu, Sep 10, 2009 The Straits Times

By Lorna Tan, Senior Correspondent

INSURANCE policyholders can name beneficiaries and change them when the need arises, thanks to the introduction of a new nomination regime.

The long-awaited Insurance Nomination Law provides policyholders of life, accident and health policies with more flexibility and control over how to distribute policy proceeds.

The new law came into effect on Sept 1 and is seen as a vast improvement on the arrangement it replaces, which did not allow policyholders to change beneficiaries even after a divorce.

This meant that if a policyholder named his spouse or children as policy beneficiaries, he effectively created a statutory trust even if he did not want to.

Policyholders were prevented from changing their beneficiaries, or cashing in their policies without the consent of beneficiaries.

Many policyholders learnt of this only during divorce proceedings when they discovered that their former spouses still had a claim on their policies, or when an insured person's death sparked a bitter family dispute.

Some did not realise that if they named other parties as beneficiaries, such as grandparents, siblings, aunts and friends, they had no legal claim to policy proceeds.

The controversies surrounding such trusts prompted the insurance industry to do away with nominating beneficiaries in life policies in 2002.

The exception is NTUC Income because its policy proceeds are paid to nominees under a different law - the Cooperative Societies Act - allowing a cooperative member to make a nomination, which can include spouse, children, relatives and friends.

Under the Insurance Nomination Law, customers have two choices - to either make a trust nomination, or a revocable nomination.

With a trust nomination, the policyholder relinquishes all rights to the policy. This means that while he is still obliged to pay premiums, all policy benefits - living and death - belong to the nominees. An advantage is that policy proceeds are protected from creditors in the event of bankruptcy.

The policyholder can regain his rights to own the policy benefits only with the consent of all nominees. And only the spouse or a child of the policyholder is eligible to become a nominee.

With a revocable nomination, the policyholder continues to retain full ownership over the policy. He retains the right to change, add or remove nominees at any time without the consent of nominees.

The policyholder will receive living benefits and only death benefits will be paid to the nominees.

Unfortunately, the new law does not apply retrospectively to existing policies with previous nominations, but existing policies with no previous nominations are eligible.

Although the new framework applies to personal accident plans, general or non-life insurers who sell such cover would not be keen to offer their customers the option to nominate.

The General Insurance Association said that this was due to the fact that such policies are renewable either annually or on a monthly basis.

'Hence any nomination by a policyholder will be valid for the period of insurance only, which can be as short as one month,' it added.

Nevertheless, the new law has been welcomed by many.

Mr Darren Thomson, president of the Life Insurance Association (LIA), said: 'For estate planning, the new framework provides all-important clarity and hence peace of mind.

'It gives policyholders legal options in naming their beneficiaries, and a choice of control over the policy - whether they wish to relinquish or retain their rights during their lifetime.'

LIA added that the nomination process is straightforward with forms that are easy to complete.

To help consumers, a guide is available on its website www.lia.org.sg

What you should know about CPF Life

2009-09-17T21:53:00.006+08:00

Source: Straits Times 13 Sept 2009

What you should know about CPF Life
By Lorna Tan, Senior Correspondent

In the coming weeks, about 700,000 Central Provident Fund (CPF) members aged 55 and above will be invited to join the CPF Lifelong Income Scheme For The Elderly (CPF Life). The annuity scheme offers a choice of four plans that pay a monthly income for as long as you live.

These plans offer various combinations of two key elements that are traded off: monthly payouts and refund amounts upon death or withdrawal from the scheme

In other words, if you want higher monthly payouts, that will reduce any final payout to your beneficiaries.

The initiative has been widely welcomed as being superior to the current CPF Minimum Sum (MS) scheme, which gives monthly payouts for about 20 years, but not necessarily for as long as you live.

The MS is the amount you are required to set aside at age 55 for retirement needs in your Retirement Account. The Retirement Account is set up when you turn 55 with savings coming from your Ordinary and Special accounts. CPF Life payouts come from the Retirement Account.

With rising life expectancy, it is prudent to ensure that your retirement savings will last for all your days.

The opt-in system began on Sept 5 and is open to older CPF members who wish to join the annuity scheme ahead of 2013, when it will be implemented for those turning 55 then. For older CPF members, the monthly payouts will start as early as next January.

While many are still undecided, some, like Madam Wong Kwai Sim, 55, have taken the plunge. She has opted for the CPF Life Balanced Plan, which will give her an estimated monthly payout of $856 to $948 when she hits 65.

Madam Wong, who works part-time as a clerk, currently has $117,000 in her Retirement Account, which is also the prevailing MS.

'By the time I can get the monthly payout, my children will be independent. I can get some from CPF Life and keep some for them when I pass away,' she said.

The Life Balanced Plan gives a moderate payout and a moderate refund. If she had stayed on the current MS scheme, her monthly payout would be some $910 for about 20 years.

Storeman Tay Lee Kheng, 61, said it was his son Benjamin, 32, who helped him choose the Life Plus Plan, estimated to pay $463 to $492 monthly when he turns 62 next year. He has about $80,000 in his Retirement Account.

'I'm not looking to get anything from him when he passes away. It is better that he gets a higher payout...All the money is his anyway,' said Mr Benjamin Tay. The Life Plus Plan provides for higher monthly payouts and a lower refund.

For those who have not decided, here are some things you should know about CPF Life. You must choose the most suitable plan as you cannot change it after you join the scheme. You cannot withdraw either, except under certain conditions.

Q Who can join CPF Life?

You can join CPF Life if you are a Singapore citizen or permanent resident aged between 55 and 80, with savings in your Retirement Account.

Those aged 55 to 79 have up to the time they reach age 80 to sign up for CPF Life. But those aged 80 and above have to do so by December next year.

A bonus of up to $4,000 is given to Singapore citizens who do so by December next year. To qualify, your annual income and the annual value of your property must not exceed $54,000 and $11,000 respectively.

Q What is the monthly payout?

Your monthly payout depends on your Retirement Account savings used to join CPF Life.

There is no minimum amount required, but note that members with lower balances will receive correspondingly lower monthly payouts.

Other factors that will affect the monthly payout include your gender, the age at which you join the scheme and the CPF Life plan chosen. Generally, females will receive lower payouts as they tend to live longer.

If you wish to have a higher payout, you may make cash and/or CPF top-ups to your Retirement Account up to the prevailing MS.

You can use the CPF Life Payout Estimator at the CPF website www.cpf.gov.sg to find out how the monthly payout varies with your Retirement Account balance.

Q Is the monthly payout fixed?

No, the monthly payout may be adjusted every year to take into account factors such as CPF interest rates and mortality experience.

The adjustments will usually be small so that payouts are stable.

The current estimated payout range is based on CPF interest rates of between 3.75 per cent and 4.25 per cent and do not necessarily represent the lower and upper limits of the payout.

Q When will I start receiving my monthly payouts?

If you join before your drawdown age (DDA), you will start to receive your monthly payout from your DDA.

If you join after your DDA, you will start to receive the monthly payout from the following month after you are included in the scheme.

If you were born in 1943 or earlier, your DDA is 60. For those born between 1944 and 1949, their DDA is 62. If you were born in 1950 or 1951, your DDA is 63 and if you were born in 1952 or 1953, your DDA is 64. For those born in 1954 or later, your DDA is 65.

Q Can I change my plan after I join?

No, you can't. This is because changing your plan will affect other members who are already in the scheme.

Q Can I withdraw after I join?

No, except on the following grounds:

Medical grounds of shortened life expectancy;
Leaving Singapore and West Malaysia permanently with no intention of returning to either country.

If you are on one of the three CPF Life plans with a refund feature, you will receive a discounted refund of the savings used to join the scheme less the monthly payouts that you have received prior to your withdrawal. There may not be a refund if your savings have been fully paid out in monthly payouts.

If you are on the Life Income Plan, which is a non-refund plan, you will not receive any refund if you withdraw from the scheme.

Q What happens when I die?

Let's assume you have opted for a CPF Life plan with a refund feature. If you die before any payout is made, the full savings will be refunded. If you die after monthly payouts have started, the savings less monthly payouts will be refunded.

Do note that there may not be a refund if you die after the savings used to join CPF Life have been fully paid out in monthly payouts.

Any refund will be made to your CPF account and paid to your beneficiaries, together with the rest of your CPF savings.

If you had chosen the CPF Life plan without a refund feature, that is, the Life Income Plan, there is no refund upon death even if monthly payouts have not started.

Q How do I choose the most suitable CPF Life plan?

The four plans differ in the level of monthly payout and the refund amount that may be left to your beneficiaries. The refund, also known as the bequest, is based on the savings used to join CPF Life less monthly payouts already received.

Alpha Financial Advisers' business unit director, Mr Tan Siak Lim, says that a CPF member should try to strike a balance between his retirement lifestyle and the bequest amount.

'You should consider the effect inflation will have on the payouts over your life. As these are level payouts, the value of payouts will shrink over time as prices of goods rise.'

Here are the four plans:

Life Basic Plan

This plan gives a lower payout than the Balanced Plan, but leaves more for your beneficiaries. It is recommended if you are in the pink of health or have sufficient savings outside your CPF, says Mr Patrick Lim, associate director at financial advisory firm PromiseLand Independent.

Life Balanced Plan

If you wish to strike a balance between your monthly payout and the bequest, the Life Balanced Plan may be more suitable for you. This is also the default plan for members who are automatically included under the scheme from 2013, if they do not choose a particular plan.

Mr Thio Eng Huat, vice-president at ipac financial planning Singapore, believes that those who are fortunate to have supplementary income in their retirement may find the Life Basic or Balanced plans more suitable.

Life Plus Plan

This plan provides a higher payout than the Balanced Plan, but leaves less for your beneficiaries.

Mr Lim says this will appeal more to individuals with chronic medical conditions who want the higher payouts to cope with the cost of living, and yet wish to leave something behind for their beneficiaries.

Life Income Plan

This plan gives the highest payout, but does not leave anything for your beneficiaries. Although it is logical to conclude that this plan may be more suitable for those who do not have beneficiaries, Mr Lim does not recommend this for anyone. This is in case the member changes his mind or if his personal circumstances change. Another reason is that there is no refund upon withdrawal from the scheme.

Q What else should I consider?

You should not depend on CPF Life to meet all your retirement needs as the payouts may be insufficient.

Start saving more and plan your retirement early. To bridge the gap, you can consider additional income plans like annuities from insurers, says Mr Tan.

Mr Lim recommends NTUC Income's annuity, which comes with a guaranteed monthly or annual payout, with a potential to receive higher payouts the longer the policyholder lives.

Also, ensure that you have funds set aside for medical expenses and insurance, says Mr Thio.

This article was first published in The Straits Times.

Dollar at multi-month lows

2009-09-11T20:25:00.003+08:00

Source: Straits Times Sep 11, 2009

Dollar at multi-month lows

The dollar fell to the lowest levels for months against the euro and the yen on Friday as upbeat economic data reduced demand for the safe-haven greenback. -- PHOTO: AFP

LONDON - THE dollar fell to the lowest levels for months against the euro and the yen on Friday as upbeat economic data reduced demand for the safe-haven greenback, dealers said.

The euro rose to a near nine-month high of 1.4627 dollars in early London trading. The dollar dropped to 90.98 yen - the lowest level since mid-February.

In later London trade, the European single currency stood at 1.4591 dollars compared with 1.4583 dollars in New York late on Thursday. Against the Japanese currency, the dollar fell to 91.04 yen from 91.74 yen on Thursday.

Gold headed back towards 1,000 dollars an ounce as the weak US unit made the metal cheaper for buyers holding rival currencies, pushing up demand, dealers said.

'The dollar continues to move lower setting a new low for the year against the euro... while the dollar has fallen more sharply against the yen,' said Mr Derek Halpenny, European head of global currency research at The Bank of Tokyo-Mitsubishi UFJ in London. 'Risk appetite has been supported by mostly positive economic data from China,' he added.

Chinese economic numbers fuelled dollar weakness on Friday and investor risk appetite, underlining hopes of a global economic recovery, said Rabobank International economist Jeremy Stretch.

China said industrial activity expanded by 12.3 per cent last month and retail sales jumped 15.4 per cent, while urban fixed asset investment rose 33 per cent in January-August due to massive government spending on construction.

Traders snapped up the currencies of countries exporting commodities to the Asian powerhouse, notably the Australian dollar.

In contrast to the upbeat Chinese data, Japan revised down its estimate of second-quarter growth to 0.6 per cent, from an initial estimate of 0.9 per cent.

Most analysts meanwhile expect the dollar to weaken further amid a growing sense that recovery from the worst global economic crisis in decades is taking root.

With the economic outlook brightening, traders tend to shun the dollar in favour of riskier currencies that appeared more profitable, like the euro. -- AFP

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Name your own Beneficiaries

2009-09-09T23:40:00.000+08:00

Source: Straits Times Sep 7, 2009

Policy rules eased

By Lorna Tan

POLICYHOLDERS are now allowed to name beneficiaries and change them when the need arises under a new nomination framework which kicked in on Sep 1.

The long-awaited-for Insurance Nomination law provides policyholders of life, accident and health policies, more flexibility and control over how they wish to distribute the policy proceeds. Customers have two choices, to either make a trust nomination or a revocable nomination.

This is a vast improvement from previously as the law did not allow a policyholder to change his beneficiary, even after a divorce. Back then, if you have named your spouse or children as policy beneficiaries, you have effectively created a statutory trust. This is even if you did not explicitly want to. It means that you cannot change your beneficiaries, or cash in your policy without the consent of the beneficiaries.

Many policyholders learn of this only during divorce proceedings when, to their horror, they find that their ex-spouses may still have claims on their policies. Or it comes to light only when the insured person dies, often sparking bitter family disputes.

Many policyholders also do not realise that if they name other parties such as grandparents, siblings, aunts and friends as beneficiaries, these people have no legal claim to policy proceeds.

The controversies surrounding such trusts prompted the insurance industry to do away with nominating beneficiaries in life policies since 2002.

The exception is NTUC Income because its policy proceeds are paid to nominees under a different law - the Cooperative Societies Act - and this Act allows a cooperative member to make a nomination, which can include spouse, kids, relatives and friends.

This is how the new framework operates.

With a trust nomination, the policyholder relinquishes all rights to the policy. This means that while he is still obliged to pay the premiums, all policy benefits - living and death - belong to the nominees. An advantage of this is that the policy proceeds are protected from creditors in the event of bankruptcy.

He can only regain his rights to own the policy benefits with the consent of all nominees. Only the spouse, or a child, of the policyholder is eligible to become a nominee under a trust nomination.

With a revocable nomination, the policyholder continue to retain full ownership over the policy. He also retains the ability to change, add or remove nominees at any time without the consent of the nominees. The policyholder will receive living benefits and only death benefits will be paid to the nominees.

Company Travel insurance

2009-09-09T23:28:00.000+08:00

source: Straits Times 8 Sept 09

Travel insurance

My husband's boss replied that half the claim would go to the company. It does not make sense.'

MADAM GERTRUDE TAN: 'Recently, my husband flew to Paris. On the return trip, the plane was delayed by six hours due to a technical fault. My husband's company had bought travel insurance for him, so his boss asked him to claim for the delay from the insurance company. Great Eastern Life was very efficient, and a cheque for $200 was made payable to my husband in due course. However, my husband's boss told him to return the cheque. My husband argued with her that what if there was a plane crash and I could not claim insurance. My husband's boss replied that half the claim would go to the company for the loss of an employee. I sought advice from the Ministry of Manpower, but the labour relations officer said the Employment Act did not cover this insurance rule. It does not make sense that an insurance claim is paid to the company. If there was a claim for lost luggage and it was paid to the company, it would not be fair to the employee who lost the luggage.'

New rules on products

2009-09-09T23:18:00.003+08:00

Source: Straits Times Sep 8, 2009

New rules on products

By Gabriel Chen MAS announced its decision as part of its response to feedback it has received on a slew of changes proposed in the wake of the collapse of Lehman-linked structured products. -- ST PHOTO: RICHARD CHNG

FROM now on, retail investors can expect financial products to fall clearly into two categories.

Products that fully protect an investor's principal sum are labelled 'capital guaranteed' - anything else carries the possibility of a loss.

That's because the Singapore's financial regulators have decided to ban a puzzling in-between category of investments that currently carry the monikers 'capital protected' or 'principal protected'.

There are no agreed definition for these terms, which are not easily understood by investors, said the Monetary Authority of Singapore (MAS) on Tuesday.

MAS announced its decision as part of its response to feedback it has received on a slew of changes proposed in the wake of the collapse of Lehman-linked structured products.

These proposals, first released in March, were mooted in response to controversy over the way complex investment instruments were sold to people, including many elderly and lowly educated folk.

Some of the key changes require financial institutions to provide customers with simple, user-friendly 'product highlights sheets' and provide 'health warnings' on complex investments in appropriately large font.

MAS has also proposed that bank tellers should not sell investments and there should be a seven-day 'cooling off' period during which an investor could change his mind and pull out of his investment.

In a 19-page document on Tuesday, the financial regulator outlined public responses it had received, and said that it would adopt most of the proposals.

The ban on the use of the term 'capital protected' will apply to mass-market products familiar to retail investors, including structured deposits, unit trusts and investment-linked life insurance policies.

Some investors have previously raised concerns that they had difficulty understanding what those terms meant, MAS said.

A 'capital protected' product is where the principal sum is ploughed into investments like bonds which, on maturity, are expected to provide the 100 per cent capital protection.

But this is not a certainty.

'The bonds could turn sour and affect the value of the investment, and people may not get back 100 per cent,' said First Principal Financial's chief executive Mohamed Salim.

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Shipwreck survivor dies

2009-09-03T22:53:00.002+08:00

Source: Straits Times Sep 3, 2009

Shipwreck survivor dies

By Serene Luo This picture was taken last year in happier times at the Singapore Cricket Club. In foreground, Mrs Wendy Goh and Mr William Goh Lye Guan, in back row, from left to right, Ryan, Russell, Reuben, and Rachel. -- PHOTO: COURTESY OF THE GOH FAMILY

A CLOSE shave with death when a cruise ship sank made a Singapore money broker steer a new course in life, making family his priority.

Mr William Goh Lye Guan was one of the survivors of the sinking of the Royal Pacific, a Singapore-based cruise liner that collided with a Taiwanese trawler in the Malacca Straits in 1992.

Following the tragedy, which claimed the life of a family member, Mr Goh cut back on his work and even became a stay-home dad, a notion virtually unheard of even today.

He took pride in running a tight ship with his brood of four, ferrying them to and from school, tuition and ballet classes.

But on Monday, this devoted and loving father died following a year-long battle with oral cancer. He was 52.

The ill-fated Royal Pacific had been on its maiden voyage in 1992, a three-day cruise to nowhere.

Mr Goh was on the ship with his wife Wendy, now 52, and his first-born and only daughter Rachel, now 19. His wife's sister and husband were travelling with them.

Of the nine missing or dead, six were Singaporeans, including Mr Goh's brother-in-law, architect Charles Law, who died while trying to escape.

Mr Goh and Mr Law were good friends, said Mr Goh's brother Steven, 47, and the tragedy probably made him take stock of his life. Mrs Goh started her childcare business in 1995, and the couple decided around then that 'Daddy would stay home to take care of the kids'.

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AIG extends improbable rally

2009-08-28T22:15:00.002+08:00

Source: Straits Times Aug 28, 2009

AIG extends improbable rally

AIG reported in July second-quarter earnings of US$1.8 billion. -- PHOTO: AP

NEW YORK - INSURANCE giant AIG extended its surprising rally on Thursday, rising 26.9 per cent amid frenzied speculation along with improved prospects on its ability to repay its massive government bailout.

AIG shares closed at US$47.84 (S$68.89), up US$10.15 in a day and some 400 per cent from recent lows on July 9, before the ailing firm announced its first profit in nearly two years.

The rally has spread to other troubled financial firms including Fannie Mae and Freddie Mac, the two mortgage finance giants taken over by the government nearly a year ago. Some analysts said the rally was a 'short squeeze' in which market players who had bet on a decline are forced to purchase shares to cut their losses, resulting in upward pressure on stocks.

Analysts at Briefing.com said the gains were a 'garbage rally' in the most at-risk financials, 'which began late yesterday afternoon with the massive short squeeze in AIG.' The surge 'wasn't the result of a specific news-related catalyst; instead, it started as a small rally in the afternoon, and as it started to gather steam and accelerate it forced shorts to panic and scramble to cover,' the note to clients said.

'Since AIG is the most volatile name in the 'at-risk financials' group, this created one of those momentum themes where coming in this morning, traders saw AIG continuing to squeeze in pre-market trading, and so they started to bid up the other low-quality financial stocks.' Andy Brooks, head of equity trading at T Rowe Price, said AIG 'looks like a stock that may be salvageable, so that has drawn investor attention. The same thing has happened to Fannie and Freddie.' But he noted that AIG stock 'is still down a down a ton from its highs' over US$1,000 a few years ago.

AIG was the largest single recipient of US bailouts, with the government pumping more than US$170 billion into the firm to keep it afloat and taking a controlling stake in the group in the process. It reported in July second-quarter earnings of US$1.8 billion.

The company said its return to profits came as some 'businesses stabilized and the company's results reflected positive valuation changes. AIG also achieved several important milestones in its restructuring programme.' AIG was on the verge of collapse last year after backing trillions of dollars in risky financial products amid a home mortgage meltdown that triggered financial turmoil.

Jon Ogg at 24/7WallSt.com said some of the AIG interest came on reports that new chief executive Robert Benmosche had talked with founder and former CEO Hank Greenberg about efforts to help rescue the firm. Joe Weisenthal at the financial website Clusterstock said the AIG rally was 'insane' since the government would have to be repaid before shareholders could benefit.

'Nobody knows what's going on, really. It's all rumor and speculation,' he said. Among other financials, Fannie Mae rose 3.78 per cent to US$1.92 dollars and Freddie Mac jumped 10.34 per cent to US$2.24. Citigroup, the bank with the biggest US bailout, jumped 9.07 per cent to US$5.05. -- AFP

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US consumer spending up 0.2%

2009-08-28T22:08:00.003+08:00

Source: Straits Times Aug 28, 2009

US consumer spending up 0.2%

WASHINGTON - US CONSUMER spending rose for the third consecutive month in July while incomes were virtually flat, government data showed on Friday in a report suggesting demand picking up amid the long recession.

The Commerce Department said consumer spending - which drives two-thirds of US economic activity - rose 0.2 per cent in July, in line with the average analyst forecast.

Personal income was up less than 0.10 per cent and disposable personal income - income less personal taxes - slipped less than 0.1 per cent.

The department said spending rose a revised 0.6 per cent in June, a hefty 0.2 percentage point higher than the initial estimate.

The June surge in consumer spending had been captured in the Commerce Department's report Thursday on second-quarter economic growth, which showed spending fell at an annualized rate of 1.0 per cent, a decline less steep than first estimated.

In that report, the department left unchanged its initial estimate that gross domestic product, which measures output, shrank 1.0 per cent at an annual pace in the April-June period, better than analysts forecasts of a 1.5 per cent decline.

Friday's consumer spending and income data showed that consumer prices held steady in July from June.

As a result, real consumer spending - excluding price variations - rose 0.2 per cent in July.

Real disposable income fell 0.1 per cent in July, following a 1.6 per cent decline in June.

Americans struggling with the worst recession since the Great Depression continued to save in July but at a slower pace, with the savings rate as a percentage of disposable income falling to 4.2 per cent.

The savings rate had hit its highest level since 1995 in May as households hunkered down as unemployment surged in the sharp recession that began in December 2007. -- AFP

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New consumer watchdog

2009-08-26T00:32:00.003+08:00

Source: Straits Times Aug 25, 2009

New consumer watchdog

By Francis Chan, Finance Correspondent

A NEW consumer watchdog was launched on Tuesday to keep closer tabs on financial institutions and their sales processes.

Formed by former Income chief executive Tan Kin Lian, the Financial Services Consumers Association (FiSCA) is an independent and not-for-profit organisation that sets out to strengthen financial consumer protection.

The move to set up FiSCA came after thousands of retail investors here lost their savings on complex structured products.

FiSCA will focus on education and research. It will hold seminars and consumer forums for members to enhance their understanding of financial services and products.

"Ultimately, our focus is to educate people on how to make choices," said Mr Tan, who will head FiSCA as president.

"But even before we learn to assess the more complex products, we must make sure we have the basic understanding first. If not, we may be easily taken for a ride."

Mr Tan said for an annual membership fee of $36, members can also access its services, which will also include an online platform.

A survey has found that investors here want a truly independent watchdog that is not funded by any financial institution, said Mr Michael Zhan, FiSCA committee member.

To maintain its impartiality, FiSCA will not seek funding from financial institutions, said Mr Tan.

FiSCA hopes to raise additional funding from government agencis and other philanthropic organisations that want to promote consumer financial education.

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2nd term for Bernanke

2009-08-26T00:24:00.003+08:00

Source: Straits Times Aug 25, 2009

2nd term for Bernanke

OAK BLUFFS (Massachusetts) - PRESIDENT Barack Obama on Tuesday awarded Federal Reserve Chairman Ben Bernanke a second term, saying his bold 'out-of-the-box' thinking would help steer the US economy out of the worst slump since the 1930s.

Mr Obama suddenly interrupted his vacation on the resort island of Martha's Vineyard to make the announcement, praising Mr Bernanke's battle against 'one of the worst financial crises that this nation and the world have ever faced.'

Lauding the cerebral Mr Bernanke for learning lessons of the 1930s Great Depression, and his background, temperament, courage and creativity, he said the Fed chief was the ideal man to help lead the economic rebound.

'Ben approached a financial system on the verge of collapse with calm and wisdom, with bold action and out-of-the-box thinking that has helped put the brakes on our economic freefall,' Mr Obama said.

The president warned however that the economy and the financial system had a 'long way' to go before its full health was restored.

Mr Bernanke, 55, will be expected to win Senate confirmation for his reappointment, but could face stiff questioning from some lawmakers who believe he did too little to stave off the recession and protect consumers.

Mr Obama's unexpected announcement, on what aides had billed as a 'no news' vacation, will likely give the financial markets, on which many Americans depend for their retirement savings, a quick boost. It may also dampen criticism of the president's economic management on a day when his Office of Management and Budget and the Congressional Budget Office are both due to release new statistics on the ballooning deficit.

Mr Obama's sudden announcement could also suck media interest away from a flurry of lawmakers' town hall meetings featuring attacks on his limping health care reform plan and a new row over Bush-era 'war on terror' tactics. His praise for Mr Bernanke read like a defense of his own economic policy, which is facing mounting opposition as his political approval ratings decline.

'Almost none of the decisions that he or any of us made have been easy,' he said, mentioning auto and financial industry rescues and his administration's bumper economic stimulus package. 'They faced plenty of critics, some of whom argued that we should stay the course or do nothing at all. But taken together, this bold, persistent experimentation has brought our economy back from the brink.'

Mr Bernanke admitted that the Federal Reserve had been challenged by the unprecedented events of recent years. 'We have been bold or deliberate as circumstances demanded,' he said, adding that his objective was to restore a stable financial and economic environment. -- AFP

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China faces new econ worries

2009-08-24T21:34:00.003+08:00

Source: Straits Times Aug 24, 2009

China faces new econ worries

BEIJING - CHINA'S top economic official warned the country faces new problems and said Beijing will stick to its stimulus because the recovery lacks a solid foundation, according to comments reported on Monday.

Premier Wen Jiabao cautioned against being 'blindly optimistic' despite improvements in the economy, according to a statement on the Cabinet's Web site.

The economy 'still faces many new difficulties and problems,' Mr Wen was quoted as saying during a visit to southeastern China that ended on Monday. 'There are still a lot of unstable and uncertain factors ahead and the economic situation ahead is still very grave, although both the world economy and the national economy are making positive changes now.'

The premier cautioned that the effects of some government measures might fade while others would take time to show results, the Cabinet statement said. It gave no other details of potential problems.

Mr Wen's comments echoed his repeated warnings against complacency and assurances that easy credit will continue. But they clashed with increasing optimism among analysts who say China is making dramatic progress in emerging from its slump.

Mr Wen promised to stick to policies meant to boost domestic demand, maintain easy credit and promote efficiency. Beijing is in the midst of a two-year, 4 trillion yuan (S$844 billion) effort to boost domestic consumption by pumping money into the economy through higher spending on building highways and other public works.

Driven by that spending, economic growth accelerated to 7.9 per cent in the latest quarter, up from the previous quarter's 6.1 per cent, but Mr Wen and other officials have called for continued vigilance. They say weak corporate profits and other areas show a recovery is not firmly established.

Many analysts expect China to be the first major economy to emerge from the sharpest global downturn since the 1930s.

The strongest improvement has been in stimulus-financed areas such as construction. Most of the early benefits have gone to state-owned companies, while a private sector recovery has lagged.

Analysts say more gains are still dependent on stimulus spending. Chinese stock markets have declined this month on concern Beijing might curb record bank lending that financed the stimulus and ignited a boom in stock prices. -- AP

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More bank failures expected

2009-08-24T12:57:00.002+08:00

Source: Straits Times: Aug 24, 2009

More bank failures expected

People walk past a Bank of America branch in New York August 13, 2009. -- PHOTO: REUTERS

NEW YORK - A PROMINENT banking analyst said on Sunday that 150 to 200 more US banks will fail in the current banking crisis, and the industry's payments to keep the Federal Deposit Insurance Corp afloat could eat up 25 per cent of pretax income in 2010.

Mr Richard Bove of Rochdale Securities said this will likely force the FDIC, which insures deposits, to turn increasingly to non-US banks and private equity funds to shore up the banking system.

'The difficulty at the moment is finding enough healthy banks to buy the failing banks,' Mr Bove wrote.

The FDIC is expected on August 26 to vote on relaxed guidelines for private equity firms to invest in failed banks, after critics said previously proposed rules were too harsh and would actually dissuade firms from making investments.

Mr Bove said 'perhaps another 150 to 200 banks will fail,' on top of 81 so far in 2009, adding stress to the FDIC's deposit insurance fund.

Three large failures this year - BankUnited Financial Corp in May, and Colonial BancGroup Inc , Guaranty Financial Group Inc in August - collectively cost the fund roughly US$10.7 billion (S$15.4 billion).

The fund had US$13 billion at the end of March.

Regulators closed Guaranty's banking unit on Friday and sold assets of the Texas-based lender to Banco Bilbao Vizcaya Argentaria SA . The FDIC agreed to share in losses with the Spanish bank.

Mr Bove said the FDIC will likely levy special assessments against banks in the fourth quarter of this year and second quarter of 2010.

He said these assessments could total US$11 billion in 2010, on top of the same amount of regular assessments. 'FDIC premiums could be 25 per cent of the industry's pretax income,' he wrote. -- REUTERS

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Study finds promise in estrogen treatment for breast cancer

2009-08-23T23:34:00.002+08:00

Source: www.channelnewsasia.com

WASHINGTON – Low doses of estrogen could help treat some forms of breast cancer, according to a clinical study published on Tuesday. The findings, published in the Journal of the American Medical Association, could lead to a partial reversal in how metastatic breast cancer is currently treated using medicines to lower estrogen levels. "When estrogen-lowering drugs no longer control metastatic breast cancer, the opposite strategy might work," said a statement from the Washington University School of Medicine, which carried out the tests. Matthew Ellis, an oncologist who was the lead author of the study, said around a third of the women who did not respond to standard treatment reacted well to the new regimen. "Raising estrogen levels benefited 30 percent of women whose metastatic breast cancer no longer responded to standard anti-estrogen treatment," he said. Side effects from raising estrogen levels could include headaches, bloating, breast tenderness, fluid retention, nausea and vomiting, but Ellis said side effects were limited in comparison to other treatments. "We found that estrogen treatment stopped disease progression in many patients and was much better tolerated than chemotherapy would have been." "Overall, we demonstrated clearly that the low dose was better tolerated than the high dose and was just as effective for controlling metastatic disease." - AFP/sh

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Race Against Cancer aims to help needy patients

2009-08-23T23:26:00.001+08:00

SINGAPORE: Giving strength and encouragement to those battling cancer. That's what the inaugural Race Against Cancer hopes to do. Some 3,600 participants took part in the race. Among them was Dr William Tan who is currently seeking treatment for stage four leukaemia. Together with some 20 sponsors, they raised about S$465,000. The Cancer Society is hoping to raise some $500,000 as part of the race's fund-raising efforts. The money will go towards the society's various programmes. These include the "SCS Help the Children and Youth programme" that helps children whose lives have been affected by cancer. Support will be provided in four areas - the school allowance grant and bursary schemes, counselling, mentoring and family engagement services. The society helps more than 1,000 needy cancer patients and reaches out to some 40,000 individuals through its community outreach and awareness programmes. - CNA/ir

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S'poreans under-insured

2009-08-21T20:34:00.000+08:00

Source: Straits Times Aug 21, 2009

S'poreans under-insured

Average person covered for only a third of $495k needed

By Charissa Yong
An average Singaporean needs life insurance protection of $494,851. However, his existing life cover is only $165,628 on average. -- ST GRAPHIC

THE average Singaporean now needs about $495,000 of life insurance, but is covered for only one-third of that amount - a drastic shortfall that needs urgent attention, an expert has warned.

According to a new report by Nanyang Technological University (NTU) Associate Professor David Yee, workers here aged from 20 to 64 are under-insured by as much as $525 billion nationwide.

An average Singaporean needs life insurance protection of $494,851. However, his existing life cover is only $165,628 on average, even after including mortgage insurance and CPF savings. This leaves a stunning shortfall of $329,223.

Prof Yee presented the report at a seminar on insurance held at the Intercontinental Hotel on Thursday.

A working adult's protection needs should provide enough cash to maintain dependants' current living standards. It should also cover any outstanding debts and funeral expenses.

This excludes the contribution of a surviving spouse. In addition, it needs to cover housing costs, allowances given to parents and children's expenses, including education fees.

Working men aged 30 to 49 have the highest protection needs as they have the highest income and are likely to have higher personal loans. Also, more dependants typically rely on them financially.

The male-female income gap is the main driver behind differences in the insurance needs of each gender, he said.

As couples get older, the husband tends to be the more dominant breadwinner, and so the financial burden of protection shifts away from the wife.

Those aged 30 to 39 were found to have the highest level of insurance ownership, but also the most protection needs.

Read the full story in Friday's edition of The Straits Times

charyong@sph.com.sg

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Grow old in own homes

2009-08-19T20:54:00.000+08:00

Source: Straits Times Aug 19, 2009

Grow old in own homes

By Tan Weizhen Although nursing homes are a necessity as the population ages, the Government wants to help elderly Singaporeans to grow old in their own homes as far as possible and will expand services to help them, said Lim Boon Heng. --ST PHOTO: STEPHANIE YEOW

ALTHOUGH nursing homes are a necessity as the population ages, the Government wants to help elderly Singaporeans to grow old in their own homes as far as possible and will expand services to help them, said Lim Boon Heng, Minister in the Prime Minister's Office on Wednesday night.

He said services such as day care, home care, escort, transport, befriending services are required and will be expanded over time.

Caregivers will also get support by tapping on volunteers and non-profit organisations like churches.

Speaking at the 50th anniversary dinner of the Catholic Welfare Services, Mr Lim said the Government will do more to provide information and referral, develop relevant services, and promote the use of the caregiver training grant, which provides $200 subsidises to train a caregiver.

He also urged the private sector, such as nursing homes and other organisations, to work with the government to achieve this, as well as to provide the elderly more opportunities to be socially active.

Mr Lim said as Singapore enters the 'threshold of rapid aging', the demand for nursing home beds will rise to cope with the growing aging population.

'Our baby boomers will join the ranks of 'elderly' in a few years. Assuming the same level of demand we have now, the need for nursing home beds will double in 10 years, triple in 20 years,' he said.

He disclosed that discussion to expand two nursing homes - St Theresa's Home and St Joseph's Home - is underway.

They are under the care of the Catholic Welfare Services (CWS), and its third nursing home, Villa Francis, is already being relocated and expanded.

The dinner, held at Bliss Garden Restaurant at Singapore Expo, was also attended by Health Minister Khaw Boon Wan, Reverend Nicholas Chia, Archbishop of Singapore, and Archbishop Salvatore Pennacchio, Apostolic Nuncio to the Republic of Singapore, along with 600 guests, staff from nursing homes, VWOs, volunteers and board members.

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'no needy' left behind

2009-08-19T20:51:00.001+08:00

Source: Straits Times Aug 19, 2009

'No needy' left behind

The needy get a lot of help, said Mrs Yu-Foo. -- ST PHOTO: HOW HWEE YOUNG

NEEDY Singaporeans do receive substantial help from the Government, and in fact the Government ensures that 'no needy Singaporean is left behind'.

Mrs Yu-Foo Yee Shoon, the Minister of State for Community Development, Youth and Sports (MCYS), said this in response to criticisms of Singapore's social safety net made on Tuesday by Nominated Member of Parliament Viswa Sadasivan.

Recent increases in the quantum of Public Assistance (PA) allowances means that the total sum that a large family gets can be very close to what a low-wage worker earns, she pointed out.

And the PA scheme is only one of many administered by her ministry to help the poor, she noted.

Citing another example, she said families with a monthly income of $1,500 or less receive childcare fee subsidies of at least 95per cent. They pay only $10 a month for childcare and $5 for kindergarten. As of April, an individual person on the PA scheme now gets $360 a month, up from the previous $330. Those with families get more.

MCYS provides children from PA families with additional assistance of up to $130 per child every month. Along with other aid, this means that a family of two adults and two children could get up to $1,210 a month, Mrs Yu-Foo pointed out.

This is comparable to the bottom 20per cent of wage earners in Singapore, who make $1,200 or less a month. There are fewer than 300,000 resident workers in this category.

PA recipients also receive other cash handouts and utilities and rental rebates from the Government, as well as meal vouchers and other forms of support from community organisations.

Mr Sadasivan had taken issue with what he called a 'very basic level of assistance' provided by the Government to very needy Singaporeans, which had to be supplemented by welfare organisations. He felt the Government was in a strong enough financial position to provide the necessary assistance directly.

In reply, Mrs Yu-Foo said that while MCYS could afford to give more to the 3,000 or so PA recipients, 'the greatest danger in doing so would be taking away the incentive of the much larger number of Singaporeans who are working hard, albeit in low-paying jobs'.

CLARISSA OON

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How secure is your home?

2009-08-16T23:57:00.001+08:00

Source: Midal Capital Markets

Use a finger print recognition door lock.

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Don't shirk responsibility

2009-08-16T23:12:00.000+08:00

Aug 16, 2009

PM'S NATIONAL DAY RALLY SPEECH

Don't shirk responsibility

By Melissa Pang He said at a recent meeting with some managers from nursing homes, he was told that some elderly folks had been abandoned by their families. -- ST PHOTO

CARING for elderly parents may not be an easy task but it is a responsibility Singaporeans must not shirk, said Prime Minister Lee Hsien Loong on Sunday night.

Speaking in Mandarin at the National Day Rally at the University Cultural Centre Speech to a gathering of over 1,600, PM Lee said: 'As Asians, we deeply value fillial piety. Family love and warmth cannot be replaced by nursing homes or hospitals.'

He said at a recent meeting with some managers from nursing homes, he was told that some elderly folks had been abandoned by their families.

These elderly parents were sent to the nursing homes by their children, who would then disappear, some even going to the extent of changing their address.

When contacted, they said they would not care even if the homes turf out their parents.

To deal with this problem, PM Lee said the Government will explore how best to use the Maintenance of Parents Act, and other ways, such as building more community hospitals, to alleviate the burden of those with sick elderly parents.

Mr Lee also devoted a substantive part of his address in Mandarin on the stresses to the healthcare system brought about by an ageing population.

Turning to healthcare issues, he touched on the rising obesity rates in Singapore.

'Maintaining a healthy lifestyle is every man's responsibility. It is the best way to avoid diseases and cut back on medical expenses,' he said.

He noted that in China, rising obesity has led to a boom in weight loss businesses. Giving an example, he said one firm in Shanghai is charging customers by the amount of weight they lose.

'Here, the annual healthy lifestyle campaign helps everyone lose weight for free,' he said, drawing laughter from the audience.

Despite the national healthy lifestyle programme, the number of obese Singaporeans is also gradually rising, said Mr Lee.

'We must work harder to prevent obesity...or there will be more illnesses, increasing the burden to society and ourselves,' he added.

Mr Lee also addressed the economic outlook for Singapore and the need to maintain racial and religious harmony in his speech.

He will expand on these issues in English at 8pm.

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Well-placed for pickup

2009-08-16T23:10:00.001+08:00

Source: Straits Times Aug 16, 2009

PM'S NATIONAL DAY RALLY SPEECH

Well-placed for pickup

By Alvin Foo PM Lee said the eye of the economic storm has passed for Singapore but the outlook beyond the third quarter is still unclear. -- ST PHOTO: JOYCE FANG

SINGAPORE is well-positioned to pick up strongly when the global economy recovers because of its comprehensive and decisive response to the downturn, said Prime Minister Lee Hsien Loong on Sunday night.

Giving an update on the economy amid signs of global recovery, Mr Lee said the economy is in a 'deep trough', but Singapore is coping well.

'Because of our comprehensive, decisive response to the downturn, we can be confident of our future,' he said in his National Day Rally speech at the University Cultural Centre.

The resilience package unveiled during January's Budget has worked, and there is no need for a 'new prescription' now, he told the gathering of politicians, grassroots and business leaders, among others.

PM Lee said the eye of the economic storm has passed for Singapore but the outlook beyond the third quarter is still unclear.

Although the economy contracted 6.5 per cent in the first half year, it was not as bad as feared, said PM Lee.

Last week, the Government released economic growth data which showed a 20.7 per cent rise in the second quarter over the first quarter's figure.

Mr Lee said the labour situation has stabilised and some companies are hiring again, although in small numbers.

'The third quarter should be alright,' he told the gathering.

But sounding a note of cautious optimism, he said: 'Beyond that, the outlook is still unclear.'

For instance, there are no signs of Christmas orders rushing in yet. Also, companies which have asked their staff to go on compulsory leave or shorter work week, have reduced their output but not headcounts.

While this is alright for the short term, it is unclear how long these firms can hold on to extra workers, said Mr Lee, adding that if the recovery is delayed, they may have to downsize.

Mr Lee said Singapore can still grow even if there is a subdued global recovery, by sharpening its skills and expanding its market share, even if world markets are not enlarging quickly.

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Maintain healthy lifestyles

2009-08-16T23:08:00.000+08:00

Source: Straits Times Aug 16, 2009

PM'S NATIONAL DAY RALLY SPEECH

Maintain healthy lifestyles

By Judith Tan Community-based programmes such as brisk-walking clubs, or qigong, could influence large segments of the population, especially older people, to take charge of their health. -- ST PHOTO: CHEW SENG KIM

PRIME Minister Lee Hsien Loong has given this simple prescription for Singaporeans to keep health costs down: Keep well and maintain healthy lifestyles.

And this means eating more fruits and vegetables, exercising regularly, keeping weight down and not smoking.

'Such a change in attitude and lifestyle requires discipline and perseverance,' said PM Lee in his National Day Rally speech on Sunday night when addressing healthcare issues confronting Singapore.

He said lectures and speeches will not work.

'The best way is to harness social links and interests to help individuals stick to good habits,' said Mr Lee.

Community-based programmes which combine fitness and social elements, such as brisk-walking clubs, or qigong, could influence large segments of the population, especially older people, to take charge of their health.

He cited Minister Lim Boon Heng's Wellness Programme, which comprises three components - medical check-ups, regular exercise and social networking - as an innovative scheme,

The popular Wellness Programme is available at 12 constituencies.

Mr Lee said he visited the one at Jurong and was most struck by cheerful and happy senior citizens.

'We will progressively expand this to cover the whole island,' he said

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How secure is your home?

2009-08-16T20:56:00.000+08:00

Source: Midal Capital Markets

Use a finger print recognition door lock.

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HK pulls out of recession

2009-08-14T23:45:00.001+08:00

Source: Straits Times Aug 14, 2009

HK pulls out of recession

Hong Kong seasonally adjusted from the previous quarter, helped by improving trade flows and consumption. --PHOTO: AFP

HONG KONG - HONG Kong pulled out of its deepest recession since the Asian financial crisis in the second quarter as GDP jumped 3.3 per cent, seasonally adjusted from the previous quarter, helped by improving trade flows and consumption, government data showed on Friday.

The figures confirm data provided to Reuters earlier, and the Hong Kong government on Friday upgraded its full-year forecast for GDP this year to a decline of between 3.5 and 4.5 per cent, against a previous forecast for a drop of between 5.5 and 6.5 per cent.

'The GDP data was much better than we expected, partly because exports were better and partly because of a pick-up in private consumption,' said Paul Tang, senior economist at Bank of East Asia. 'Private consumption is being driven up by stock market gains and by the property sector, which started doing well. The second half will show positive growth. We will revise our forecast upwards.'

However, the economy remains weak and gross domestic product fell 3.8 percent from the second quarter last year, although that was much better than forecasts for a 5 per cent decline.

'The external environment is still uncertain,' government economist Helen Chan told a news briefing.

The territory follows neighbour Singapore, which surged out of recession in the second quarter, while Germany and France surprised financial markets on Thursday by announcing they too had returned to growth.

As a trading and financial hub, the territory has been hard hit by the global economic downturn. A year ago it slipped into its deepest recession since the Asian financial crisis in 1997/98 as trade was hit by weak global demand and rising unemployment made consumers cautious.

Consumers have, however, become more upbeat as the Hong Kong stock market has rebounded 80 percent since early March and property prices have recovered 20 per cent this year. Private consumption expenditure in the second quarter surged 4 per cent from the first quarter.

Exports improved in the second quarter as mainland China's economy picked up, although they were still down on last year.

Economic recovery is likely to be very gradual and will depend on how soon the US economy can rebound, economists say. -- THOMSON REUTERS

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Health inequalities rising

2009-08-14T23:36:00.002+08:00

Source: Straits Times Aug 14, 2009

Health inequalities rising

WHO representative in China Hans Troedsson (left) said 'Inequalities in health outcomes and access to care are much greater today than they were in 1978.' --PHOTO: DAILYLIFE.COM

BEIJING - THE world is facing bigger inequalities in health and access to medical care than 30 years ago, the World Health Organisation said in two global reports launched in China on Friday.

A child born in a suburb of Glasgow, Scotland, can expect to live 28 years less than another living just 13 kilometres away, while a girl in Lesotho is likely to live 42 years less than one in Japan, the WHO said at the launch of the reports in Beijing.

This year's World Health Report focused on the way primary health care is organised, financed and delivered in rich and poor countries around the world.

A second report, 'Closing the Gap in a Generation,' documents the results of a three-year investigation into health inequalities between and within countries, the WHO said in a statement.

'Inequalities in health outcomes and access to care are much greater today than they were in 1978,' WHO representative in China Hans Troedsson said.

'Genes do not explain any of this,' the doctor added.'Instead, the differences between - and within - countries result from the social environment where people are born, live, grow, work and age. It also depends on health systems that are put in place to manage illnesses.'

Giving an example, the WHO pointed out that in Sweden, the risk of a woman dying during pregnancy and childbirth is one in 17,400 while for mothers in Afghanistan, the odds are one in eight.

The WHO reports call for better understanding of the root causes of health inequalities and for action to improve daily living conditions. They also urged policy makers to return to basics and focus on prevention.

'Instead of relying on specialist care or biomedical interventions, we should focus more on prevention and strengthen primary level care,' Mr Troedsson said. 'Better use of existing preventive and primary care measures could reduce the global burden of disease significantly.'

China recently announced an ambitious reform plan, drawn up with WHO help, that aims to provide basic medical care for all by 2020. An initial three-year programme will see 850 billion yuan (S$179 billion) invested from 2009 to 2011 to reform the unpopular current system which is seen as costly, badly funded and providing shoddy treatment.

'Everyone - male or female, young or old, rich or poor - should have access to health care that is fair, people-centred, affordable and efficient. 'But health systems will not naturally gravitate towards fairness and efficiency. Deliberate policy actions are needed,' Mr Troedsson said. -- AFP

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Interests of policyholders protected: MAS

2009-08-14T00:09:00.003+08:00

Source: Straits Times Aug 13 2009

Interests of policyholders protected: MAS

I REFER to last Thursday's letter by Mr Larry Haverkamp, 'Transparency in insurance: Policyholders underpaid'. He suggests that insurers have built up 'orphaned money' by under-declaring bonuses to participating policyholders. This is not the case in Singapore. With the introduction of the Risk-based Capital Framework in August 2004, insurers in Singapore are required to record the total amount of assets held in the participating fund as backing the liabilities to the participating policyholders. This means all assets in the participating fund belong to the participating policyholders. The issue of 'orphaned money' therefore does not arise.

In addition, there are rules governing the distribution of bonuses for participating funds. Under the Insurance Act, when insurers declare bonuses to participating policyholders, they can distribute not more than $1 to shareholders, as compensation for their management of the fund, for every $9 of bonus declared to policyholders. This ensures that insurers have an interest to manage the participating fund properly to achieve reasonable long-term returns for policyholders in accordance with the stated investment objectives of the fund.

These requirements ensure there is no incentive for insurers to intentionally under-declare bonuses in the hope of building up large amounts of 'orphaned money' to benefit their shareholders in future.

The Monetary Authority of Singapore (MAS) informed insurers in July this year that the definition of a participating policy in the First Schedule of the Insurance Act will be amended to provide even greater clarity that the assets of the participating fund belong to participating policyholders.

Angelina Fernandez (Ms)

Director (Communications)

Monetary Authority of Singapore

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Prudential doubles losses

2009-08-13T23:53:00.001+08:00

Source: Straits Times Aug 13, 2009

Prudential doubles losses

LONDON - PRUDENTIAL, the biggest British insurer, said on Thursday that net losses more than doubled in the first half on costs linked to the sale of Taiwanese operations, and as it awaited a new chief executive.

Prudential said losses after tax jumped to 254 million pounds (S$605 million) in the first six months of 2009 compared with a year earlier.

The group had in February agreed to sell part of its life insurance operations in Taiwan to China Life for just one Taiwan dollar.

Prudential's outgoing chief executive Mark Tucker on Thursday said the British insurer expected 'the business environment to remain difficult through the rest of 2009'.

Net losses had widened in the first six months of 2009 from 116 million pounds in the first half of 2008.

Prudential announced earlier this year that Frenchman Tidjane Thiam - currently the group's financial chief - would in October replace Tucker, who departs after 25 years with the group. Ahead of Thiam starting his new role, Prudential on Thursday said it was hiking its interim dividend by five percent compared to a year earlier after it had improved its capital reserves.

The dividend announcement helped Prudential's share price to rise by 4.75 per cent to 501 pence in morning London trade. The British capital's benchmark FTSE 100 index meanwhile struck its highest level for 10 months on fresh signs of a global economic recovery, traders said.

Prudential also said that its operating profit had risen six percent to 688 million pounds in the first half, helped by strong sales growth of its products in the United States.

'While we expect the business environment to remain difficult through the rest of 2009, Prudential is very well positioned to take advantage of any improvement in market conditions,' Tucker said on Thursday.

'I leave knowing that we have an excellent management team in place across the group and I am confident that Tidjane (Thiam) will continue to lead the group from strength to strength,' he added. -- AFP

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Recession to end soon

2009-08-13T13:24:00.002+08:00

Source : Straits Times Aug 13, 2009

In its battle against the worst financial crisis since the Great Depression, the Fed has cut interest rates to near zero and put in place a number of emergency lending programs. -- BT FILE PHOTO

NEW YORK - THE majority of big banks that do business directly with the Federal Reserve say the recession will end this quarter, and they see only a low risk that the economy will take another turn for the worse.

Seventeen out of the 18 dealers in the Fed's exclusive network of primary dealers that responded to a Reuters poll said the economy will see its first quarter of growth since 2007 in the third quarter of 2009.

The dealers on average see a 26 per cent likelihood of a so-called 'double-dip' recession, in which an economy plunges back into recession after a brief recovery. Views ranged from a 10 per cent likelihood (Morgan Stanley, Goldman Sachs and RBS) to a 60 per cent likelihood (Mizuho and Cantor Fitzgerald).

On Wednesday, the Fed, the US central bank, said the economy was levelling out after a ravaging recession that started in December 2007. But risks remain and the Fed reiterated its pledge to keep interest rates very low for an extended period.

In its battle against the worst financial crisis since the Great Depression, the Fed has cut interest rates to near zero and put in place a number of emergency lending programs.

Primary dealers don't expect the Fed to raise rates until 2010 at the earliest. Four banks expect the Fed to raise rates in the first half of 2010, seven say the second half of 2010.

The Fed also said it will have phased out its US$300 billion (S$433 billion) Treasury purchase program by the end of October. The Fed has bought about 84 per cent of the US$300 billion so far, and reviews on the effectiveness of the program have been mixed.

The 10-year note's yield was 3.71 per cent late on Wednesday, up from a five-decade low just above 2 per cent at the end of 2008.

A year from now, in the third quarter of 2010, dealers see the benchmark 10-year Treasury note's yield at around 4 per cent, according to the average forecast of the 17 primary dealers who answered that question.

This forecast suggests little concern that huge government debt issuance to pay for financial rescues, on course for US$2 trillion this year alone, will ignite a major upsurge of inflation and send Treasury yields spiking higher.

The Fed on Wednesday reiterated that it expects inflation to remain subdued for some time. - Reuters

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The End Age of Retirement

2009-08-13T00:09:00.003+08:00

Check out this post, extreme insightful read. Talks about the pension trap, aging population and declining birthrates. read on http://www.psyfitec.com/2009/05/end-of-age-of-retirement.html

Manulife I-Gen & 3 Gen Retirement Plan

2009-08-12T22:55:00.007+08:00

I-Gen

You have plans for the future and you want to live life to the fullest. You want an income that can last because there is no reason to slow down even during your retirement years. With I-Gen’s attractive guaranteed and additional payouts, you are one step closer to shaping an earlier and comfortable golden retirement.

Features and benefits:

Enjoy a lifetime of income with just 10 years of premiums.
Attractive yearly cash coupons of potentially up to 4.2% p.a.¹ of the sum insured² starting from the 10th policy anniversary.
Earn an interest of 3.5% p.a.³ when you deposit the Cash Coupons with Manulife.
I-Gen is simple to apply with no medical underwriting required.
Enjoy a guaranteed 1.5% discount on your second year premium when you pay the first 2 years of premium upfront.

¹ The yearly Cash Coupons consist of a guaranteed 2% and a non-guaranteed 2.2% of the sum insured. The 2.2% is non-guaranteed and the actual benefit payable may vary according to the future performance of the Participating Fund.

² The sum insured is solely used to determine the Cash Coupon amount and Reversionary Bonus only. It does not represent the benefit payable on a claimed event.

³ 3.75% p.a. is the prevailing interest rate and is subject to change.

Manulife 3G

You want to live life to the fullest without worrying about your finances. An early retirement is not an impossible dream to pursue. A decade of premium is all it takes for a secure retirement. With Manulife 3G’s attractive yearly Cash Coupons, you are one step closer to shaping an earlier and comfortable golden retirement. Invest a decade for a lifetime of income.

Features and benefits

Enjoy lifelong protection with just 10 years of premiums.
Boost your retirement with attractive yearly Cash Coupons currently at 4.2%* p.a. of the basic sum insured starting from the end of the 10th policy year onwards.
Earn an interest of 3.75%^ p.a. when you deposit the yearly Cash Coupons with Manulife.
Secure your retirement with a constant stream of income for life.

Below is an illustration that

shows how a 30 year old male who is a non-smoker, standard life with $100,000 sum insured, can benefit from Manulife 3G

* The yearly Cash Coupons consist of a guaranteed 2.0% and a projected 2.2% of the sum insured. As the 2.2% is non-guaranteed, the actual benefit payable may vary according to the future performance of the Participating Fund.

^ 3.75% p.a. is the prevailing interest rate and is subject to change.

2.5% a year on CPF savings

2009-08-12T22:22:00.005+08:00

Source: Straits Times Aug 12, 2009

By Dennis Chan The board said its computed rate, derived from the rates of major local banks for the period between May 1 and July 31, works out to 0.44 per cent a year. -- ST PHOTO: STEPHANIE YEOW

CENTRAL Provident Fund members will continue to receive 2.5 per cent a year on the savings in their ordinary account for the next three months.

The board said its computed rate, derived from the rates of major local banks for the period between May 1 and July 31, works out to 0.44 per cent a year.

The higher rate of 2.5 per cent will be paid because that is the minimum specified under the CPF Act.

The board also announced that the concessionary interest rate for Housing Board mortgage loans will remain unchanged at 2.6 per cent a year for the same October to December period.

This rate is pegged at 0.1 percentage point above the CPF interest rate for ordinary account.

An extra 1 per cent interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the ordinary account.

The interest rates for Special, Medisave and Retirement accounts for October to December will be announced next month after the average yield of the 10-year Singapore government security is computed.

It will be no lower than the prevailing rate of 4 per cent.

a blog on: Financial Planning Advice - Christopher Pua

'Severe asset inflation'

2009-08-11T23:10:00.001+08:00

Source: Straits Times Aug 11, 2009

By Melissa Tan Asset inflation - meaning a rise in price of assets such as stocks and property - is a possible consequence of the United States' current expansionary fiscal policy. --ST PHOTO: ALPHONSUS CHERN

SINGAPORE risks 'severe asset inflation' during the economic recovery, a local economist has warned.

But this danger can be averted if the Government acts now to control the prices of HDB flats, said Mr Paul Yip, Nanyang Technological University (NTU) associate professor of economics.

Asset inflation - meaning a rise in price of assets such as stocks and property - is a possible consequence of the United States' current expansionary fiscal policy, Professor Yip said on Tuesday.

He was speaking at an NTU symposium - on exchange rate systems and Asian macroeconomic policies - which brought together 11 macroeconomists from institutions such as Stanford University and Delhi School of Economics.

'Many people say that the property market is rebounding, but I don't think so; we are still bottoming. Recovery will be slow ... and a few years later we might have severe asset inflation, much more than the rise today,' Prof Yip said.

'So if you are a stock investor or property investor, it's very easy. Just hold your stock and shares for another three or five years - the price will climb to be much higher. But if you lose money, don't blame me,' he quipped.

Prof Yip noted that the US government has lowered interest rates and expanded its money supply in a bid to avoid a repeat of the Great Depression.

But post-recession, the government may fail to shrink the money base back to pre-downturn levels, he said. In that case, excess US dollars would flood the market.

'For Singapore, there may be an inflow of money from the US, increasing the money base and therefore the money supply... When the recovery comes, there will be wage inflation and consumer price index inflation, and this will fuel asset inflation,' he told The Straits Times.

'Rents will rise and then people will be able to charge even higher rents, causing a vicious circle,' Prof Yip said.

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Child survives 9-storey fall

2009-08-11T18:56:00.003+08:00

Source: Straits Times Aug 11, 2009

By Kimberly Spykerman

The spot where three-year-old Sihu fell, now cordoned off (left), is covered in thick bushes, which helped cushion his fall. -- PHOTO: LIANHE ZAOBAO

A THREE-year-old boy miraculously survived a nine-storey fall after landing in a thick clump of bushes at Goldenhill Park Condominium in Lorong Chuan on Monday. The South Korean toddler was found conscious and wailing only minutes after he went missing from the family's rented four-room apartment.

Park Sihu - who turns four next month - was taken back upstairs to his distraught mother. Paramedics treated him for cuts and abrasions before rushing him to the KK Womens and Childrens' Hospital for further tests. Doctors there said that the boy escaped with little more than a fractured ankle as well as cuts to his chin, face and body.

When The Straits Times visited Sihu at the hospital on Monday afternoon, he was getting ready for an operation to fix his fractured right ankle. A large piece of plaster covered his chin. His mother, Madam Hanna Kim, was at his bedside. The 36-year-old homemaker felt her son was 'lucky' to have survived the fall. 'God must have protected him,' she said tearfully, stroking her son's forehead.

On Monday morning, Sihu had wandered into the guest bedroom, clambered onto the bed that was pushed against the open window, and toppled over the ledge.

Madam Kim said her daughters, aged seven and nine, were in the room as well but were studying and paid little attention to Sihu playing behind the curtains. She said she usually does not allow her son to play in that room unsupervised.

It was only when her daughters burst into her room to tell her that Sihu was missing, that she realised something was horribly wrong. 'When I heard from them that Sihu might have fallen out of the window, I thought...' she said, bursting into tears. Their domestic helper ran downstairs and found the boy.

Doctors The Straits Times spoke to said that surviving a fall like Sihu's was very unusual and that he was 'very lucky' to have fallen on bushes. Dr Victor Ong, a consultant at the National University Hospital's emergency medicines department said there are usually two reasons someone could survive such a fall:

The person hits items such as bamboo poles on the way down, thus slowing the speed of the fall and lessening the impact.

If the person lands on something soft - like the thick bushes in Sihu's case - the force is distributed across the whole body and so there is no sustained force in any particular area of the body.

Madam Kim said that she will be asking her landlord to have metal grilles installed over all the windows in the apartment. 'It's not only to protect my family, but the next tenant's as well,' she said.

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HK investors protest DBS

2009-08-09T23:00:00.004+08:00

Source: Straints Times Aug 9, 2009

The investors are demanding securities regulators help them negotiate a settlement. -- PHOTO: AP

HONG KONG - ABOUT 100 Hong Kong investors burned by complex financial products linked to failed US investment bank Lehman Brothers protested on Sunday, demanding securities regulators help them negotiate a settlement.

Tens of thousands of retail investors in this Chinese-ruled financial hub were hit by Lehman's collapse in September.

Hong Kong securities regulators announced a settlement deal last month for one group of investors who purchased certain Lehman-linked products through local banks, but the agreement did not cover products sold by Singaporean bank DBS Group Holdings.

Sunday's protesters were demanding securities regulators step in to strike a deal for DBS clients. The demonstrators bought so-called 'Constellation' notes from DBS - financial products that are linked to the credit ratings of a group of financial institutions, including Lehman.

About 6,900 Hong Kongers bought HK$2.3 billion (S$427 million) worth of the failed investments, according to K.C. Lok, an organiser of the disgruntled investors.

'DBS lacks a conscience', 'DBS is a swindler', the protesters chanted at a park in Hong Kong's downtown Central financial district.

Lok, who bought just over HK$100,000 in the Constellation notes, accused DBS of misleading its customers into believing the financial products were conservative investments.

'Many of the investors shifted their money from timed deposits,' Mr Lok said.

DBS Hong Kong spokeswoman Glendy Chu said on Sunday that the bank had explained the risks of the products and offered compensation to investors in cases where there was evidence of questionable sales practices.

The deal announced last month would see 16 local banks returning 60 or 70 per cent of the principal to thousands of investors in a payout that amounts to HK$6.3 billion. -- AP

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Annuity: your No.1 Asset Class for Retirement

2009-08-07T23:10:00.008+08:00

by Christopher Pua

What is an Annuity?

Annuities are plans that allow you to accumulate tax-deferred funds for retirement and then you (the annuitant) can opt to receive a guaranteed income usually payable for life or for a specific period of time. Alternatively, you can call it your retirement income for life. The objective of an annuity plan is to ensure that you will have a continuous stream income during your retirement years and for as long as you are alive. So, it protects you from outliving your resources. Thus a life annuity is a form of longevity insurance, where the uncertainty of the annuitant’s lifespan is transferred to the insurer. And the insurer is able to take on this risk by applying the law of large numbers and hence reduces the uncertainty by pooling many clients. Currently, annuity plans are sold by insurer through their appointed Financial Planners/Advisors or other authorized Financial Institutions under the regulation of the MAS.

Single vs. Regular Payment Annuity.

Typically, there are two modes of payments available to an annuitant. One can either pay a lump sum premium, in which case is called a Single Payment Annuity or choose to pay a series of regular premium, in which case is called a Regular Payment Annuity, prior to the onset of the annuity.

Stages or Phases

There are usually two stages or phases in an annuity plan. The first stage is referred to as the accumulation phase. During the accumulation phase, the annuitant deposits and accumulates money into an account for the plan over a period of time. The second stage is referred to as the distribution phase. During the distribution phase, the insurer starts the annuity and pays out a regular income to the annuitants on a monthly/quarterly/semi-annually/annually basis for as long as the annuitant is alive. Having said these, there is also immediate annuity in which there is no accumulation phase. A lump sum payment is made by the annuitant and the annuity income starts immediately until the annuitant’s death. The annuity plan with both accumulation phase and distribution phase is called a deferred annuity plan.

Types of Annuity Plans

There are many types of annuity plans available in the market. The most common of these are immediate annuities, fixed annuities, equity-indexed annuities and variable annuities.  Immediate annuities pay owners a set amount of money on a predetermined schedule (monthly, quarterly, annually, semi-annually).  Fixed annuities are interest-based vehicles similar to bank-issued CDs, but they offer a higher minimum interest rate and are extremely low-risk. They typically offer returns of between 3% - 10% for essentially no risk and hence they are popular choices for conservative investors. Equity Indexed annuities on the other hand, can achieve a greater return than the annual minimum rate because it earns interest that is linked to a stock or other equity index. Variable annuities are extremely flexible and are typically invested in mutual funds, therefore are subject to the same risks as stocks, bonds and mutual funds. Variable annuities are best for more aggressive investors.

Is CPF Life an Annuity?

Yes, CPF Life is an annuity and currently all CPF members who turned 55 starting Sept 2009 will be able to buy into this plan using the money from their RA(Retirement Account). The money in the RA is actually the CPF money set aside as your minimum sum and transferred over from your SA(Special Account) and OA(Ordinary Account) when a CPF member turns 55. At the present moment, I would always recommend my client to buy into the CPF life as their first annuity plan as it pays the highest rates in the market right now. Then, to supplement the CPF Life you should take up another private annuity plan from one of the private insurer. Currently Manulife has two annuity plans that pays up to 4.2% per annum on the sum insured for the duration of the annuitant’s life. One of the plan called 3-Gen comes with a life insurance component, whereas the second plan i-Gen does not and hence also do not require any medical underwriting, make it an ideal plan for annuitant who may have a medical condition.

A Word of Caution

Setting up an annuity can be an incredibly confusing and complicated process and many people interested in annuities have questions about the process: Are annuity payments taxed? Are withdrawals from a deferred annuity taxed? Which is the best annuity choice for me and my family?  Your best bet is to consult a Financial Planner to ensure that the annuity you pick is the best possible fit for your family and your financial situation.

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Are you relying on Luck to strike it Rich???

2009-08-07T19:27:00.005+08:00

Source: www.nationwide.com

There are better ways to get rich.

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Opportunity knocks for Asian banks: Tony Tan

2009-08-07T19:07:00.008+08:00

Source: Business Times Published August 7, 2009

GIC deputy chairman says worst is over but challenges remain - along with chances

By TEH SHI NING

(SINGAPORE) The worst is over for Asia and there are unique opportunities ahead, says Tony Tan, deputy chairman of the Government of Singapore Investment Corporation (GIC).

These include the chance for Asian banks and capital markets to step in to meet the massive capital demand needed to finance Asian growth, as their Western counterparts retreat. But, to quickly develop regional capital markets will demand more cooperation than ever before between the regulatory and development authorities of financial sectors in the region, said Dr Tan, who is also GIC's executive director.

He was speaking at the Economic Society of Singapore's annual dinner last night. In his last speech in this vein, delivered in April last year, Dr Tan warned that the global economy could sink into its worst recession in 30 years - a warning many had then dismissed as too gloomy but which now rings with prescience.

Last night, it was with a cautious optimism that Dr Tan outlined the implications and opportunities for Asia as the worst of the global financial crisis impact fades, while pointing out the lingering risks.

'Asia experienced a dramatic slowdown, but Asia's fundamentals are strong,' he said.

'Now that there are signs of stabilisation in the global economy, Asian economic growth will recover.'

But he had a different overall prognosis for the US and other major developed economies. While they are expected to register positive growth later this year, Dr Tan says that sustained growth in 2010 and beyond remains uncertain, given deleveraging headwinds.

It is also this uncertainty which Dr Tan sees as the 'greatest risk' to Asia's outlook - 'a global economic and financial environment that does not stabilise and recover by 2010'. Other risks, Dr Tan pointed out include weak demand and deflation risk from the US, as well as the threat of a dramatic rise in protectionism if there is no recovery next year.

The major challenge ahead, he said, is the uncertainty raised by the apparent failure of Western or American models, and the 'serious unanswered questions on the role of markets and the state, including the appropriate level of regulation and state intervention'.

However, it is in such an environment that 'Asian banks and capital markets will face both a tremendous challenge and opportunity to intermediate huge regional savings to meet massive capital demand from Asian growth', Dr Tan said.

As the Western banking system remains 'hampered by capital constraints and re-regulation', Dr Tan said, this 'leaves the playing field unusually open for Asian financial institutions and markets, particularly for the next 3-5 years'.

Asian banks entered the crisis healthier than their global counterparts, relatively unleveraged with debt.

But to take advantage of this, regional authorities need to coordinate financial regulatory architecture and practice, and build up regional capital markets, while avoiding over-regulation's dangers, Dr Tan said.

Also, as 'low global interest rates combined with ample liquidity could give rise to volatile capital flows and asset bubbles across Asia', managing this will be a 'major task' for policymakers, he said.

Dr Tan also highlighted the reorientation of Asia's economic growth model as a key implication of the global crisis on this region. Particularly for the more populous countries, economic growth will shift from being export-driven to a more balanced model of growth, which is as dependent on domestic consumption as on export growth.

He sees this as helpful, because domestic demand would help mitigate weak demand from the developed world for the next few years, and also because some of the domestic investment involved in such rebalancing would also boost productivity and economies' productive capacity.

'Rebalancing growth will not be an easy process,' Dr Tan said, noting how the Chinese authorities are already 'walking a fine line between restructuring the economy for longer- term sustainability and attempts to mitigate the short-term pain'.

He said: 'Understandably, much of the focus has been on the negative aspects of this adjustment, but I am optimistic that Asia will come out of this crisis in a stronger position.'

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What does a Pop star ask a Guru?

2009-08-07T00:07:00.004+08:00

Source: Youtube.com

Posted on 12:34:56 07/08/09 a Millennium Time Stamp

Oh Guru, what is the most important thing in life???

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Growth strategy 'robust'

2009-08-06T23:30:00.006+08:00

Source: Straits Times Aug 6, 2009

IT'S a misperception that the Singapore economy is driven largely by foreign MNCs, which have crowded out smaller, local companies catering to domestic demand, said Senior Minister of State for Trade and Industry S. Iswaran on Thursday.

He maintained that there is a healthy mix of companies, with no particular corporate model being dominant.

'Over the last few years, SMEs share of the total value-add produced in our economy has been steadily increasing to just under 50 per cent. Small companies therefore account for about half of Singapore's value-added,' said the minister in his address to the Singapore Economic Review conference on Thursday morning.

' If you were to split total value-added along the lines of foreign versus local companies, you would find that each accounts for about half of the total value-added of the economy.'

On questions raised by some economists that Singapore has become too reliant on external demand, Mr Iswaran sought to explain that if it did not have an export-led growth model, the economy would not have grown as fast in the past decade.

External demand accounts for three-quarters of Singapore's total demand. Between 2000 and 2008, average annual real growth in total demand was 8 per cent - with external demand contributing 7 percentage points while domestic demand contributed just 1 percentage point.

'For a small economy like Singapore, the reality is that external demand will always be a key driver if we want to raise living standards for our people,' said Mr Iswaran, adding: 'If Singapore did not have an export-led growth model, we would not have grown as fast in the past decade. And we would not have been able to build up the resources that have helped to cushion the impact of this current recession.'

He told the conference that Singapore's approach to economic development and growth remains robust strategies have been constantly reviewed to match the economic conditions and the goals set.

The tenet is a simple one: to capture growth opportunities when prospects are good, to ensure that it will have enough resources to ride through lean times.

But in the wake of the current economic crisis, which is expected to lead to significant shifts in the patterns of global demand and growth, Mr Iswaran said it is imperative that Singapore be well prepared for the choices, and poised for the opportunities that lie ahead.

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Asia to emerge stronger

2009-08-06T23:11:00.005+08:00

Source: Straits Times Aug 6, 2009

By Alvin Foo

THE worst of the crisis seems to be over for Asia, which will emerge stronger owing to its sound fundamentals, said Government of Singapore Investment Corp (GIC) deputy chairman and executive director Tony Tan on Thursday night.

He sounded a cautiously upbeat message at the annual Economic Society of Singapore dinner, noting that the crisis also presented opportunities for Asian financial institutions and markets.

'The worst seems to be behind us in Asia. Asian economies are now expected to see continued improvement through 2010,' Dr Tan said at the dinner held at Swissotel The Stamford.

While cautiously optimistic in the short term, he also warned of possible risks and challenges to recovery, such as trade protectionism and a global environment which does not stabilise and recover by next year.

In July 2007, at another event, Dr Tan spoke of dark clouds on the horizon for financial markets. In April last year, well before the financial mayhem that erupted in September, he warned the world could be facing its worst recession in 30 years.

On Thursday night, he said the region would emerge from the crisis in a better position, and reorientate itself to ensure more balanced and sustainable development.

'Asia's fundamentals are generally sound, policy-makers have lots of flexibility, and the population is hard-working and educated,' said Dr Tan.

The economic downturn has presented regional financial institutions and markets with 'tremendous opportunities over the next decade', he noted.

This is because Western banks will probably be unable to meet the capital demand needed to finance Asia's growth due to constraints and re-regulation.

'This leaves the playing field unusually open for Asian financial institutions and markets, particularly for the next three to five years,' he said.

However, regional banks and markets will need to develop quickly to fill this gap, he added. Other implications of the crisis for Asia are the volatile capital flows and asset bubbles which policy-makers will face due to ample liquidity and low interest rates.

'Like in the early 1990s, managing large capital inflows and prospective bubbles given managed exchange rates will be a major task for policy-makers,' said Dr Tan

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Crisis on several fronts for RMs

2009-08-05T23:28:00.010+08:00

Source Business Times: August 5, 2009

Client trust and confidence waning as over half say they count on themselves for financial advice now. Client attrition is another fallout, reports GENEVIEVE CU

A GLOBAL survey has found that only one-fifth of chief executives of wealth management firms believe that their relationship managers (RMs) are of 'high calibre', with more than a quarter saying their RMs are of only average ability.

Despite this, training hours globally were reduced last year compared to 2007. In Asia, training hours increased but the emphasis was on market updates and products.

The cut in training, says PricewaterhouseCoopers (PwC), is understandable when budgets are under pressure. 'However, the quality of RMs has never been more important. If quality of advice is to be the real differentiator, wealth managers need to improve their RMs' skills - and quickly.'

This is one of several significant findings of a study by PwC earlier this year. The study, A New Era: Redefining the Way to Deliver Trusted Advice, points to a crisis on several fronts for wealth managers.The obvious one is that of client trust and confidence as over half of clients say their main source of financial advice is now their own research and knowledge. The survey polled nearly 240 private banks and wealth managers in 40 countries between December 2008 and March 2009. Asia Pacific accounts for about 16 per cent of respondents.

Client attrition is yet another fallout. The survey indicates that attrition rates are higher in Asia where 31 per cent of respondents are grappling with an attrition rate of over 25 per cent. Globally, around 10 per cent of bankers suffered attrition rates of more than 25 per cent.

Globally, only 55 per cent of respondents have formal client retention programmes, which PwC sees as a 'dangerous omission' on current market conditions. Most private clients report that they are rarely asked to comment on the quality of service they received; about 35 per cent said this happened only once a year.

Perhaps this explains yet another statistic: only 38 per cent of respondents are able to retain more than 50 per cent of assets upon intergenerational wealth transfer.

Low-yielding accounts

On their part, RMs, who are at the frontline of client servicing, have to cope with an environment of low-yielding client accounts. Clients were badly burnt last year by horrendous market losses, exacerbated by poor product choices and leverage. This suggests that those who still have cash with bankers are looking to asset preservation.

Against this backdrop, the top five factors used to measure RM performance become a steep challenge: increasing assets under management; meeting revenue targets; attracting new clients; satisfying clients and retaining clients.

'In the current environment, it is difficult, if not impossible, for RMs to perform well against most of these criteria - indeed they are making RMs demoralised and disengaged,' said the survey. 'Wealth managers need to focus on the factors that make a successful RM in the current market and take steps to measure their RMs against a new, more relevant set of criteria.'

The study makes the point that while CEOs see quality of advice as a key differentiator, compensation structures must change to reward behaviour that fosters long term relationships. The catch is that 55 per cent of wealth managers have no plans to change their reward structures over that period.

Justin Ong, PwC's Asia Pacific private banking and wealth management leader, says the Asian portion of the survey has found that private banks aim to make fee-based revenue a greater proportion of total income over the next two years, reducing reliance on commission income.

'Encouraging client-centric behaviour can only succeed if the way in which client advisers are remunerated is aligned with client interest. There must be some element of accountability for long term performance such as deferral of income or clawbacks.'

In the Asian survey, only 13 per cent have a clawback provision for poor performance.

Advisory-based fees is a goal, he says. 'But the challenge is that Asian clients tend to be ambivalent about paying for advice . . . So much of this is a matter of client education and the ability of banks to change the mindset of RMs to accept this as a more equitable measure of client service.'

On training, the Asian study has found that training hours increased, in contrast to the global finding. But the real issue, says Mr Ong, are the areas in which training dollars were invested into. 'The question is whether the training is for the bank or RM's benefit, or for the client's benefit.'

The survey found that the largest amount of training time goes into financial markets updates, product training, followed by soft skills.

'At the organisational level and looking at the issues clients are facing now, areas such as intergenerational wealth transfer and taxation are very low on the training agenda. But this is where the real value to clients are and ultimately to the private bank as a whole . . . '

Re-tool leaders

An expert involved in training RMs, who declines to be named, says: 'In how many ways can you train RMs to be nice and honest with clients? I think the issue is also to re-tool their leaders. You have to implement what you say you set out to do. The higher levels are governed by short-term goals.

'Salaries also have to be more realistic. Many RMs are paid like sales people, so they behave like sales people.'

Some banks, such as UBS, run their own training programmes. The Wealth Management Institute has a certification programme for RMs, which has received the Financial Industry Competency Standards (FICS) accreditation for training and assessment. The programme has trained some 500 RMs since it was offered in 2004.

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Laker Kobe Bryant Sells Ankle Insurance

2009-08-05T18:37:00.003+08:00

Source: Youtube.com

Laker Kobe Bryant Sells Ankle Insurance. Slap stick funny.

Watch on...

a blog on: Financial Planning Advice - Christopher Pua

Easi Investors will beat putting money in FD

2009-08-05T16:31:00.009+08:00

Given the low fixed deposit interest rate the banks are currently offering, do you know how much interest can you earn if you were to put $20,000 into Fix Deposit account?

That works out to be $111 per year.. The interest earned is not even enough to cover inflation.

For a limited time only, Manulife is offering our innovative program, called EASI-INVESTOR, to grow your savings at a faster rate and at the same time, maximise your returns.

Here is how Easi-Investor Gives you higher expected returns on your savings!

Easi-Investor is the perfect balance for your savings!

-Endowment component provides higher guaranteed returns (2.1%/pa for 5 year term & 2.3%/pa for 8 year term)

-Endowment component is capital guaranteed even with early withdrawal

-no medical underwriting

-top up investment anyimt to benefit from dollar cost averaging

feel free to contact me should you want to find out more about how Easi-Investor can help you fulfill your goals!

Christopher Pua

9239 0070

chrispua@yahoo.com

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Life Insurance as part of your Asset Class

2009-08-05T01:22:00.005+08:00

Source : Youtube.com CNBC.com

CNBC talks about allocating 5% - 10% of your assets portfolio into Life Insurance.

Watch to find out more.

a blog on: Financial Planning Advice - Christopher Pua

Agents to return $12.6m

2009-08-05T01:05:00.005+08:00

Source: Straits Times Aug 4, 2009

1,000 will give back up to $12.6m in payouts tied to policy buyback

By Lorna Tan, Senior Correspondent About 18,000 policyholders invested a total of $594 million in the GreatLink Choice policies. GE Life agents earned a 2.12 per cent commission on sales. -- PHOTO: BUSINESS TIMES

ABOUT 1,000 Great Eastern Life agents have been asked to return up to $12.6 million in commissions received from policies they sold up to four years ago. The GreatLink Choice (GLC) policies are investments the insurer decided last Friday to buy back at full cost.

About 18,000 policyholders invested a total of $594 million in the policies, buying from the insurer's network of agents. Agents earned a 2.12 per cent commission on sales. On average, they earned about $12,600 each, though some earned close to $100,000. Now, they will have to give back the money.

This is believed to be the first time that sellers of financial products are being asked to return commissions on products they sold years ago, without admitting to any wrongdoing.

Read the full story in Tuesday's edition of The Straits Times

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Financial Peace: The Miracle of Giving

2009-08-04T00:03:00.004+08:00

Source: Youtube.com

Miracles Happens

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Financial Planning: Investing The Right Way

2009-08-03T23:37:00.005+08:00

source: www.forbes.com, www.youtube.com

The 3 Golden Rules in Investing.

Take a look at this video, it talks about the 3 golden rules in investing, common-sensical but essential.

1. Write down specific investment goals. Be realistic and don't invest without a purpose.

2. Have a proper asset allocation: Your mix of Stocks, bond, cash, insurance, gold, property etc

3. Have proper investment behavior: Don't get emotional. Be prepared for bear markets.

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Accident Happens

2009-08-03T23:08:00.003+08:00

Source: Straits Times Aug 3, 2009

Car crashes into church

GILMER (Texas) - THREE people were injured when a sport utility vehicle crashed into a church just as the service was about to start.

Texas Department of Public Safety Trooper Kenneth Nolley told the Tyler Courier Times Telegraph that the vehicle crashed into the auditorium of the Zion Hill Baptist Church in Gilmer, in eastern Texas, on Sunday morning. Mr Nolley said the driver indicated she accidentally hit the gas instead of the brake.

Mr Nolley said the driver would not be cited because the accident happened on private property.

The driver was not injured. However, three other people, including two children, were taken to hospitals. All were treated and released. -- AP

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KFC blamed for girl's illness

2009-08-03T23:05:00.003+08:00

Source: Straits Times Aug 3, 2009

SYDNEY - AN AUSTRALIAN family sued KFC on Monday, claiming their daughter became brain damaged and crippled after eating a chicken wrap tainted with salmonella.

Their lawyer told the New South Wales state Supreme Court in an opening statement there was no doubt that Monika Samaan, then 7, developed salmonella poisoning from a chicken wrap bought from a KFC outlet in Sydney in 2005.

'There is little or no doubt that chicken was reported by all scientists, at the time of these unhappy events occurring, as being the source of that salmonella,' lawyer Anthony Bartley said.

Officials for KFC, which is operated by Louisville, Kentucky-based Yum Brands Inc, could not immediately be reached for comment.

The girl, now 11, attended court in a wheelchair. Mr Bartley said she had acquired spastic quadriplegia and an intellectual disability since the poisoning.

Mr Bartley said the court would hear 'disturbing and quite unsettling' evidence about the practices in KFC kitchens during the trial. -- AP

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Ripples from Great Eastern's move

2009-08-03T18:47:00.003+08:00

Sources: Business Times 3 Aug 2009

GreatLink Choice customers win, but who loses and will other financial institutions feel the heat?

By SIOW LI SEN SENIOR CORRESPONDENT

Print article

SOME 18,000 Great Eastern policyholders have been sleeping easier following the insurer's offer to redeem their GreatLink Choice (GLC) product.

With that decision, Great Eastern, a unit of OCBC Bank, has cleverly sidestepped a potential controversy with this group of customers who invested a total of $594 million in GLC products sold since 2005.

To recap: On Friday, Great Eastern said it is making a one-time redemption offer to its GLC policyholders. During the offer period, GLC policyholders can, if they so choose, have their GLC units cancelled under this redemption offer and receive a sum equal to the original purchase price of $1.00 per unit, less the total annual payouts received to-date.

GLC is a series of investment-linked insurance products with the underlying investments in CDO (collateralised debt obligations) instruments, with insurance coverage thrown in.

Since the financial crunch began in 2007, CDO-linked products have lost much of their value and GLC policyholders became increasingly nervous, despite receiving their projected annual returns.

Although returns and principal repayment on maturity are not guaranteed, policyholders have been enjoying annual returns of between 3.5 and 4.9 per cent, princely sums given the zero interest paid on some banks' fixed deposits

But reading the mood of investors correctly, Great Eastern has decided to redeem the GLC units because the alternative would be increasing aggravation from anxious customers - 18,000 is a lot of people to upset.

Some observers may wonder if the recent censure and one-year sanction on selling structured products slapped on affiliate OCBC Securities for mis-selling Lehman-linked products was a factor that led to the redemption offer.

Insurers after all are there to give peace of mind to its policyholders, not cause them sleepless nights.

The redemption offer maintains the trust and confidence of customers for the 101-year-old company, the oldest insurance company in Singapore and Malaysia.

The ripple effect of the redemption cannot be overestimated.

The company, with $45 billion in assets and 3.8 million policyholders, is trying to expand in China, Indonesia, Vietnam and Brunei. Regulators there will be watching closely.

Said Joseph Siah, president of the Great Eastern Life Planners Association: 'If the GLC defaulted, all the work, talking of trust, will be affected.'

Great Eastern agents, 2,500 of them, are now said to be the envy of their counterparts in rival companies as the redemption will result in new sales.

So who loses from this action? Great Eastern has said the financial impact of the offer will be reflected in the Q3-09 financial results - and the loss is conservatively estimated to be in the region of $250 million.

Based on this estimate, the negative impact on OCBC Group's third quarter 2009 financial results is expected to be around $218 million.

Will the non-guaranteed returns of other policyholders also be reduced?

What about other financial institutions? Will they now feel the heat to make similar offers for underperforming investment products sold to customers?

Commenting on Great Eastern's voluntary redemption decision, the Monetary Authority of Singapore said it 'welcomes efforts by financial institutions to take appropriate steps to maintain the trust and confidence of their customers based on their own commercial considerations.'

If it hasn't struck them by now, shareholders of financial institutions should realise that the effects of the financial crisis will reverberate for some time.

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Stock boom alarms Beijing

2009-08-03T18:38:00.003+08:00

Source: Straits Times Aug 3, 2009

BEIJING - THE crowd in the packed Guosen Securities office jostles around buzzing printers that spit out receipts for their share buys, hoping to cash in on China's stimulus-fuelled stock market boom.

'The central government has to fulfil their promise of 8 per cent economic growth,' said Wu Jun, 62, a retired civil servant who has part of his life savings of 50,000 yuan (S$10,500) and lives on a 2,000 yuan-a-month pension in stocks. 'They'll come up with measures to keep the market in good shape.'

But while investors expect the market - up more than 80 per cent this year - to keep rising, Chinese leaders are alarmed. They worry that too much of the $1 trillion lending binge by state banks that paid for China's nascent revival was diverted into stocks and real estate, raising the danger of a boom and bust cycle and higher inflation less than two years after an earlier stock market bubble burst.

Beijing is trying to tighten credit controls without derailing the economic revival or causing a market crash - a risky path at a time when Chinese leaders say a recovery is not firmly established.

'It's a very serious threat. The Chinese government is walking a tightrope,' said Mark Williams, Asia economist for Capital Economics in London. 'There is the question of what happens if they rein in lending, because there is really no strong evidence that private sector demand is picking up.'

Any hiccup in China's recovery could dent its rising demand for imported industrial raw materials and consumer goods, damaging hopes it might lead the global economy out of its worst downturn since the 1930s.

China's growth accelerated in the latest quarter to 7.9 per cent over a year earlier while the United States and Europe struggle with recession. The surge was driven by Beijing's 4 trillion yuan plan to insulate China by pumping up domestic demand with heavy spending on building highways and other public works.

But the growth - up from 6.1 per cent the previous quarter - highlighted China's continued reliance on stimulus spending. The big gains were in construction and other stimulus-fuelled areas, while retail spending and other private sector activity lagged.

Bank credit soared to a record 7.1 trillion yuan in the first half of the year and the rate of lending is accelerating. Loans in June expanded to more than double the May level at 1.5 trillion yuan ($220 billion).

Economists say as much as 15 per cent or 1 trillion yuan ($145 billion) of that money has been diverted into stocks and real estate despite government rules that say banks should lend only for productive investment. -- AP

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Great Eastern offers to buy back structured products at par

2009-08-02T23:25:00.006+08:00

Source: Business Times: Published August 1, 2009
'Goodwill' gesture for GreatLink Choice investments may increase pressure on other firms By CONRAD TAN Singapore

GREAT Eastern Holdings is offering to buy back at full value $594 million worth of structured investment products that it sold to policyholders, some of which have plunged more than 80 per cent in value due to the financial crisis.

The life insurer, which is 87 per cent owned by OCBC Bank, said it expects to take a hit of about $250 million in its financial results for the third quarter.

Great Eastern offered yesterday to redeem all 594 million units of GreatLink Choice investment-linked products it has sold, at their par value of $1 each, less all yearly payouts to date.

That means policyholders who choose to redeem their units will be left with the initial sum they invested in the product, without any gains or losses on their investment, after including the payouts they have received so far.

The one-time offer will be open from Aug 3 to 28.

Great Eastern chief executive Ng Keng Hooi emphasised in a statement that it was making the offer voluntarily 'as a gesture of goodwill', and said that the offer would not apply to any of its other products.

Great Eastern did not sell any other similar structured products to its policyholders, he added. But its decision yesterday is likely to increase the pressure on other firms here that sold structured investment products which have since suffered heavy losses to make similar offers to buy back the products at their original value.

The Monetary Authority of Singapore (MAS) said in a statement that it 'welcomes efforts by financial institutions to take appropriate steps to maintain the trust and confidence of their customers based on their own commercial considerations'.

The GreatLink Choice series of products were structured with the underlying investments in collateralised debt obligations or CDOs and were sold in five tranches between September 2005 and October 2007.

Each tranche paid a fixed yearly coupon - ranging from 3.5 per cent to 4.9 per cent for the different tranches.

The stated objective of the funds set up to invest the proceeds from each tranche was to maintain the fixed yearly payment while offering '100 per cent capital protection on maturity' - which ranged from five to seven years. But neither the coupon payments nor the return of the full principal at maturity were backed by a formal guarantee.

Instead, the yearly payments and the principal protection depended on the performance of a reference pool of over 100 'credit names' comprising corporate and government debt issuers, as well as on associated derivative transactions. As more of the credit names defaulted, both the yearly payments and the principal invested could be eroded.

Investors could redeem their units early - but at the prevailing unit price, which varied with market conditions.

The latest prices available, as at the end of June, show that the market value of some of the units has dropped to less than a fifth of their starting price.

The fourth and fifth tranches - launched on Dec 31, 2006 and Oct 31, 2007, and maturing on Dec 31, 2013 and Oct 31, 2012 respectively - have suffered the worst declines in value. Their unit price at end-June was just 19.2 cents, compared to the initial price of $1.

The first two tranches sold - launched in 2005 on Sept 30 and Oct 31, and maturing on Sept 30 and Oct 31 next year - have fared better. Their unit prices were 61.1 cents and 60.9 cents respectively at the end of June, or about 40 per cent below par.

The third tranche, which was launched on Aug 31, 2006 and which matures on Aug 31, 2013, had a market value of 29.8 cents at end-June.

The latest quarterly reports of the five funds show that at least six of the names in each of their reference pools of credits have defaulted. The failed names include Lehman Brothers and Washington Mutual in the US and Icelandic banks Glitnir, Landsbanki and Kaupthing - all of which collapsed in quick succession in September and October last year.

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Ceiling fan blade hits diner

2009-08-02T22:53:00.004+08:00

Source: Straits Times: 2 Aug 2009

By Nur Dianah Suhaimi Mr Lum's ankle was bruised and his boots were damaged when the blade came off at Cafe Vic.

IT WAS a long-awaited dinner between two childhood friends over their favourite food - durians.

But the durian buffet dinner at Carlton Hotel's Cafe Vic two weeks ago went terribly wrong for interior designer Marshall Lum, 30, and human resource officer Chur Sze Ying, 29.

While they were eating at the restaurant's alfresco dining area, the blade of a rotating ceiling fan above them came off with a loud bang, spun wildly around the area and hit Mr Lum on the ankle before landing on the floor.

Shocked, the pair immediately ran to the side of the restaurant because they feared that the ceiling fan, which was still rotating, might come crashing down on them.

Mr Lum's ankle was bruised and his snakeskin boots were damaged by the fan's blade, which was about 75cm long.

Despite the commotion this caused among the 20 or so diners in the area, none of the service staff came to check on him, said Mr Lum.

'We were just left standing there like clowns. The service staff who were standing around before suddenly ran off somewhere. Nobody came to ask if we were okay or to switch off the fan which looked wobbly,' he said.

They had to wait for 10 minutes before a restaurant staff member came by to check on them.

Mr Lum said he had to speak to three restaurant staff before he was referred to the manager. He also had to remind them to switch off the ceiling fan.

'Nobody seemed to know what to do. They were just passing the buck,' he said of the incident on July 24.

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CEO dies at triathlon

2009-08-02T22:43:00.006+08:00

Osim Triathlon

Source: Straits Times : 2 Aug 2009

By Terrence Voon

Calvin Lee Wee Sing, 42, was pronounced dead at 2.45pm on Sunday, about one and a half hours after he ran into trouble during the swim segment of the Mix/Open relay race at the annual triathlon event. -- PHOTO: WWW.EASINGAPORE.ORG

THEY were aiming to complete their first triathlon relay together - as colleagues and as friends.

But their Sunday afternoon at East Coast Park ended in tragedy, when one of them died suddenly after taking part in the swimming leg of the Osim Singapore International Triathlon.

Mr Lee appeared to be struggling and disoriented in the water, about 350 metres away from the finish line of the 1.5km swim race.

He was spotted by a life marshal, who quickly called for a jet ski to bring the stricken swimmer to shore.

Paramedics and doctors tried unsuccessfully to revive Mr Lee - who was by then unconscious and foaming in the mouth - using cardiopulmonary resuscitation or CPR.

Attempts to jumpstart his heart using an automated external defibrillator (AED) also failed. He died later at Changi General Hospital.

Organisers say the cause of death is still under investigation.

Mr Lee - the chief executive officer of Deutsche Telekom Asia - is the latest fit and active person to die suddenly while exercising strenuously.

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How much money has America printed?

2009-08-01T23:54:00.006+08:00

Have you ever wonder how much money the FED has printed and pumped into the economy? What does this mean and how will it affect the greenback?

Watch this video to find out more?

source: Youtube.com

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Peter Schiff: Why is America in this current crisis?

2009-08-01T23:30:00.009+08:00

From the author of the best selling book "Crash Proof", watch this video expounding the current situation in the American economy.

source: Youtube.com

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Financial Planning - Does it sound too good to be true?

2009-08-01T23:03:00.005+08:00

Sometimes, if you come across an investment or plan that sounds too good to be true, it probably is.

Watch this funny clip.

source: Youtube.com

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How to avoid unexpected Financial Problems - Funny

2009-08-01T22:36:00.004+08:00

Watch this video and learn how to avoid unexpected Financial Problems.

Very funny.

source: Youtube.com

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GE to return $250m

2009-08-01T22:15:00.006+08:00

Surprise move related to investment-linked products sold to 18,000

Source Straits Times, 1 Aug 2009 By Lorna Tan, Senior Correspondent
GE's move comes 3 weeks after a lengthy investigation by the MAS into the selling of similar structured products in the banking and securities sectors. -- PHOTO: BUSINESS TIMES

IN A stunning development, about 18,000 Great Eastern Life customers who bought investment products similar to the ill-fated Lehman Minibonds will get all of their money back. And they did not have to ask for it. The move by GE Life, which will cost the insurer a whopping $250 million, is purely voluntary.

The products in question are called GreatLink Choice (GLC) - a series of single-premium investment-linked insurance products sold in five tranches between 2005 and 2007, netting $594 million in investments.

Like Lehman Minibonds, GLC was linked to a class of complex financial instruments whose value has been badly hit by diving financial markets. So despite diversifying the risk and building in various loss-protection features, the values of the GLC plans have plummeted between 40 and 80 per cent.

'Great Eastern understands that these steep discounts have given rise to concerns among GLC policyholders,' group chief executive Ng Keng Hooi said in a statement on Friday.

'To address GLC policyholders' concerns in these extraordinary times, we have taken a decision to make this one-time offer, as a gesture of goodwill, to redeem these products. Our offer is voluntary, and is made without any admission of liability.'

The GLC plans, available for a minimum investment of $5,000, had aimed to provide investors with fixed annual payouts ranging from 3.5 to 4.9 per cent. They also aimed to return to investors their principal on maturity, though both the annual payouts and principal repayment on maturity were not guaranteed.

The plans came with a five- or seven-year maturity period and the first tranche would have matured in September next year. But policyholders can now opt, anytime from Monday to Aug 28, to redeem their investments and receive a sum equal to their original investment, less total payouts received to date.

The unprecedented move comes three weeks after a lengthy investigation by the Monetary Authority of Singapore (MAS) into the selling of similar structured products in the banking and securities sectors.

About 9,900 people lost most or all of their investments totalling about $520 million in structured products such as Lehman Minibonds and DBS Hi Notes 5. Ten financial institutions were penalised, and 3,900 investors received a total of $107 million as compensation.

GE's surprise offer on Friday to redeem up to $250 million is more than twice that amount, and that immediately drew high praise from consumer advocates such as the Securities Investors Association of Singapore (Sias).

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Great Eastern Life Customers - fully compensated for ILP

2009-08-01T22:03:00.009+08:00

Happy to get money back

source: Straits Times 1 Aug, 2009

By Yang Huiwen

TEACHER Sekaran C.'s jaw dropped when he learnt that he would be fully compensated for the $75,000 investment he made in a Great Eastern Life product four years ago.

He is one of about 18,000 Great Eastern Life customers who had bought GreatLink Choice (GLC), a series of investment-linked insurance products which were sold at five tranches between 2005 and 2007.

In a surprise move last Friday, Great Eastern announced that about 18,000 of its customers who had bought the products will be able to get all of their money back.

The GLC plans, available for a minimum investment of $5,000, had aimed to provide investors with fixed annual payouts ranging from 3.5 to 4.9 per cent.

Values have since plummeted between 40 and 80 per cent. This voluntary move will cost Great Eastern $250 million.

Policyholders can opt to redeem their investments and receive a sum equal to their original investment, less total payouts received to date.

About 85 per cent of GreatLink Choice customers are between 30 and 60 years old, with females making up 65 per cent of all policyholders, said a spokesman.

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Workshop on ABC - Ass with Piles, Blood in Stool, Colon Cancer

2009-07-31T13:42:00.009+08:00

This is the second time we are holding this workshop by Dr

Heah. He has over 30,000 cases of experiences, is humorous

and guaranteed you will benefit from this workshop and have

a better understanding on Piles, blood in stools and the

preventive steps you can take towards fighting off colon cancer.

Call or email me to reserve a seat for you:

Christopher Pua

chrispua@yahoo.com

Mobile: 9239 0070

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How to plan for your retirement?

2009-07-31T00:42:00.004+08:00

I you think you are too young to start planning for retirement, think again. If you are 50, and think you are too late to plan for retirement, think again.

Watch this video from www.howdini.com. it will open up your mind.

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Choosing a Financial Advisor.

2009-07-30T16:46:00.006+08:00

Choosing the right Financial Advisor

source: www.imas.org.sg

Advice & Advisors
How to choose a good Financial Adviser Representative
The representative must be honest, trustworthy and ethical If you sense a lack of sincerity and trust in the representative, you probably want to seek a second opinion. An adviser who lacks strong ethical standards and compromises ethics for convenience will not hesitate to compromise your position.
The representative must be able to understand your financial responsibilities. If he has little or no idea about your situation after you have explained to him, and cannot determine your problem areas, then he probably cannot recommend you the solutions that meet your needs.
The representative must think of your interests instead of his. Client centred is vital. An adviser who thinks of his interest before yours will probably recommend solutions that benefit him more than you. Your interest can be easily compromised in the process.
The representative must be impartial and objective when recommending solutions. This is to ensure he is able to provide appropriate and effective advice in accordance to your needs.
The representative must have access to a wide range of financial products. An adviser who is limited by products will not be able to offer competitive and creative products in his recommendation.
The representative must have good knowledge of the various financial products available. It the adviser is ill-informed of the various financial products, he will not be able recommend solutions that have taken into consideration various alternatives available.
The representative should possess good work ethics and habits. He has to be diligent and be prepared to serve your financial needs. An adviser that is often difficult to contact will frustrate you and cannot help you achieve your objectives. The representative must be a good listener. An adviser that is impatient will tend to hurry you into committing on the investment too soon. The adviser should gather sufficient information before proposing a solution. He must be prepared to conduct a thorough fact-find and involve you in the discussion stage to understand your situation well. This will ensure that he takes into consideration your situation before recommending you an appropriate plan.
The representative must have a proper system of record keeping. This is to ensure that he keeps track of the history of discussions you have had with him regarding the areas of concerns, action plans and objectives.
You should feel comfortable with your representative The client adviser relationship is critical to ensure that you are able to rely on him for effective and professional advice. Achieving your financial goal is a long term process that requires constant review, good advice and strong sense of discipline. If there is too much information that you cannot divulge to your adviser because you are not comfortable, then your adviser will not be able to advise you appropriately.
The rep must continuously keep himself abreast of the changes in the industry. If you sense that he is unwilling to further his education and improve his knowledge, then you may be dealing with an obsolete adviser in time to come.
The representative must be serious about his career and stay in the business in the long term. Only an adviser who takes his job in personal financial advisory as a long term career can ensure that he will be there to help you achieve your objectives. If your advisers are changed too often, you will get tired of ensuring that you deal with the right person and probably waste too much time trying to go through old data too often.
We thank the Association of Financial Advisers (Singapore) for their advice on choosing a financial adviser.
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ABC to a secured Retirement: Annuity, Body & Companion

2009-07-29T23:48:00.012+08:00

by Christopher Pua 29 July 2009

What does Retirement means to you?

Some dictionary defines retirement as follows:

re⋅tire⋅ment [ri-tahyuhr-muhnt] Show IPA

–noun

the act of retiring or the state of being retired.
removal or withdrawal from service, office, or business.
the portion of a person's life during which a person is retired.
a pension or other income on which a retired person lives: His retirement is barely enough to pay the rent.
withdrawal into privacy or seclusion.

To you and me, retirement may mean one or more of the above or something totally different. Some may see retirement as a final departure from their 9 to 5 job. Another may want to continue working maybe at another capacity or in a volunteer organization, yet another may wish to spend his or her retirement years travelling with loved ones, meeting up with old friends, spending more time in their hobby or looking after their granchildren.

Whatever it is, it's entirely up to your imagination, your desire and your physical and financial ability. I remember when my father in law retired some 11 years back when he turned 55. My mother in law whom has been a housewife since she was married to my dad, could not adapt to seeing her husband lazing in the couch the whole day doing nothing. She tried her best trying to nag at him to go back to work, but he didn't budged. After about 2 years of trying, she finally gave up and resolved in her that he isn't returning to the work force. Now they have learned to live with one another, watching tv together, traveling on a bus to different parts of Singapore to explore delicacy from different hawker centers and restaurants. And once in a while pop by their sons' and daughter's home to visit their grandchildren, they are enjoying their golden years.

ABC of a secure Retirement

Research shows that when a person comes to their retirement age, there are 3 things in their life that would become more important to them:

1. To have constant streams of money during their retirement years: Annuity

2. To have a healthy lifestyle, good, mental, physical and spiritual health: Body

3. To have good relationships with their loved ones and friends: Companion

That's why I have titled this article the ABC of a secure retirement.

A for Annuity

Is money or income important during your retirement years? You bet, If you think that when the time comes, everything will take care of itself, you are in for a big surprise. Guess what if you did not plan for your retirement, and did not manage your finances well during your working years, you will have no finances to manage when you retire. And if you think your CPF will be sufficient to see you through, think twice. The new CPF Life scheme may give you a good start with your first annuity plan, it is usually not enough to see you through your monthly expenses. I heard from one of my friend who is in his senior years, he said:" when you are working, and have a family, which day of the week do you spend the most?" I said: " I guess that would be the weekend, or Sunday." Then he said to me: " When you retire, everyday is a Sunday." I thought it was quite funny but when I think harder, it is true, you will see that everyday you spend in your retirement years, you will be spending money on a daily basis, and if you have opt to stop work completely, there is no income but out expenses. So, as a financial planning, I have always advise my client to start working on their retirement planning. Be it a small plan or a big one, at least you set the ball rolling.

So, why is annuity so important when we retirement? It is important and you should make it your top priority when it comes to your asset allocation, because this financial instrument will be able to give you a lifetime monthly payout for as long as you live, let me repeat that, for as long as you live, got it? If you were to put this money into an annuity plan over 10 years before you retire, it could give you an annual payout of $6000 per year for as long as you lived from the 11 years onwards. And after you have passed on, there will still be a residual sum to be given to your loved ones.

So, the bottom line is, an Annuity plan will protect you against outliving your resources, because the drawdown monthly payout is for your lifetime. In this sense, you will be rest assured that you will be able to receive a constant stream of income during your retirement years.

B for Body

Next, your body, mind and soul would also be an important area for you to put your focus and attention on. As the proverbs says, Health is wealth. We need a healthy body, a sound mind, and a peaceful soul at all stages of our life, not just during or retirement years. But as we all know, when we age our body and mind would start to age as well. I've read an article about an interview with our Minister Mentor Lee on how he heed the sign on his aging body and begin to change his living habits, quitting smoking in his late 30's, cutting down on consumption of alcohol, going for regular jogs etc.. Likewise, we should all follow his footstep, don't stop exercising. If you can't do what you used to be doing previously, do something that you enjoy and are able to cope with. Stay active, stay engage with your friends, community, loved ones. Seek your own solace, to find inner peace thru meditation, prayer etc. Keep your mind sharp, read, engage in conversation with your friends, your children, volunteer. Whatever it is, keep yourself busy and continue to contribute in your capacity and gifts and talent that God has given you. You will become more fulfilled, happy and energetic.

C for Companion

And finally, we must not neglect our loved ones. Don't get me wrong, I'm not saying not to neglect them when you have retired, you should do that, but more so, now and everyday. Because human relationship is like a garden, we need to sow the seeds, tend to the garden, prune it once in a while, nurture it with our love and care and all this takes time, effort and sacrifices. If you are not tending to your garden right now, it may become a wilderness by the time you are looking for the garden. Tend to your garden with love. Next, start making new friends again when you reach your retirement years, because you will find that some of your old friends may meet our creator before we do, so if we do not continue to make new friends, our circle of friends will continue to shrink day by day. We are not an island, we are created to be an interactive and interconnected being, so we need friends and companionship.

Take on this new stage of your life with great enthusiasm and hope. Because many of us are always waiting for the day we retire. so, if you have planned well for it, enjoy every moment of your golden years.

I hope this ABC steps will help you in planning for your dream retirement. God bless.

a blog on: Financial Planning Advice - Christopher Pua