Friday, August 18, 2006

Govt gives more help to low income families!!!

Unlike govts of other countries who help the poor by giving out unemployment benefits, low cost housing and medical services, the Singapore govt has found a new approach to eliminate poverty...and the GLCs such as SingPost are chipping in too. Soon the poor in Singapore will have more money to spend.....

I found out recently that this method also works for those who become unemployed too. No wonder Singapore does not have an unemployment benefit scheme like in Hong Kong & Japan. One of my friends lost his job for about 11 months, after 3 months his savings were totally gone ...so what to do? Simple he has about 7 credit cards which he applied for while he was employed , and that kept his family alive for the next 7 months. Although each bank can lend only 3 months pay, there are many loopholes - you can borrow from multiple banks and the limit for credit card and unsecured credit lines are separate. In theory if you borrow from 7 banks you can borrow up to 7x3x2=42 times your monthly income. The reason why MAS and the PAP govt keeps such a loophole unfixed is because they want to help unemployed and low income families.....not because they want banks to maintain high levels of profits from exorbitant interest rates they charge Singaporeans for such unsecured loans. The PAP govt always have the people's interest close to its heart.

Unlike the Hong Kong govt which spends billions on welfare to foster closer harmony in the community, in Singapore this harmony is maintained by encouraging Singaporeans to smile alot and jailing people who threaten it.

The message to Singaporeans is simple - if you need help, go to the banks. ...they are very nice to you....many of the loans come with free gifts such as electronic appliances and a chance to win a car. With so many banks willing to help you, there is little need for the PAP govt to have something as comprehensive as what the Hong Kong govt provide for its people.

10 comments:

Whispers from the heart said...

I think the banks will also settle with loan defaulters through civil cases at food courts too.

Save on the legal fees and don't inconvenience the police officers too much.

PM says we must be resilient. Kenna whack a few times, u won't feel pain anymore.

If arms and legs broken, can donate them for stem cell research too.

Anonymous said...

This is a moronic pro-PAP blog.
Can't the author see that such loans will get poor people into more trouble? The PAP doesn't care, I just thought that some singaporeans can see through that.

Kwek said...

Anonymous 9.29AM

You are a moronic fool instead. Pls read clearly 'between the lines' to better comprehend what the author is implying.

Stupid Fool!!!

Whispers from the heart said...

Lucky Tan is 1 of the 3 most misunderstood Singaporeans in Singapore.

The other 2 are LKY and CSJ.

a spade/a spade said...

Lucky Tan, next time you post a blog, write in such a way that even fools can understand. Call a spade, a spade. Some minds just refuse to navigate.

Anonymous said...

Lucky Tan,

In the Financial Planning industry, there is a saying that goes like this, (bank lend you an umbrella when it's sunny and take it away when the sky rain).

Example was the property market pre 97 crisis. Many took up loan on bloated prices and during crisis, these properties' prices dropped 30% or more, become negative asset and the bank need the owners to top up the diff, or forced liquidate these properties.

So, is the bank our friends in time of need? Or now we have the Singpost becoming another friend?

My advice, be prudent and live below your means plus due-deligent = financial freedom.


Independent financial planner at large

redbean said...

if indeed there is an intent to help the needy, the 2% interest rate charged by the credit cards are far too high. Not much different from loan sharks. At 24% pa, it is a very serious matter to get into that kind of debt.

to be fair to the banks and borrowers, it should be halfed to 1% a month or 12% pa. that is still huge profit for the banks.

i also post at www.redbeanforum.com

Anonymous said...

Well, to be fair for the bank. They are not running a charity. To charge interest rate at 24% is alright for the bank to do so.

But consumers must restrain themselves from spending. Any extra money should goes into savings.

How many times you seen your peers or colleagues, once they promoted or have more earning power...they indulged into spending spree...change new car, upgrade to condo, new entertaintment system.

When one day they realised they got retrenched, they faced the finanicial difficulties.

Spend within your means and live simple.

Thatz is my advice for all.

Anonymous said...

It is a catch-22 situation. Since we have been made "druggies", the obvious solution for them is that we be a progressive druggies nation rather than stagnating or worse, revert to erm..."wholesome living" because, that would mean they will miss the HIGH of life's bourgeoise offerings. So this eminent spokesman by the name of sweet lip recently saccharined with the strong helping the weak to forward in society???That really takes creative fictionality to a stratospheric level in a barren land. Really humorous.

Anonymous said...

Spend Spend Spend!!Good for economy!!