Sunday, August 12, 2012

Singaporeans To Procreate



Former Minister Mentor Mr Lee KY had urged Singaporeans to get married and procreate. (Speech on 11 Aug 12)

This was not the first time that the government had reminded Singaporean to create the next generation. Had it been successful? If yes, there would not be many reminders. My guess would be the upcoming PM National Day Rally, there would again be new incentives and reminders for Singaporeans.

For individuals, there would be many considerations for babies. Work is one of them. The relentless pursuit of economic growth and excellence in areas of work would render couples to think twice to give up freedom and independency for parenthood. The baby incentives may work but it will only increase slightly the autonomous number of babies being born each year.

More pro family incentives may be necessary. These may be include making housing more affordable. Assuming a 4-room flat in Punggol is approximately $300,000 (standard flat) and an addition of $50,000 for renovation, it would mean a couple earning a family income of $5000 (both working) would take 70 months to pay for the flat (approx 6 years) without other expenses. The flat could be paid by Central Provident Fund but it would likely take more than 10 years.

The other consideration is transportation. A baby would need to visit hospital/polyclinics often for immunisation or health check up. The parent would need the convenience of a car to ferry the mother and the baby as hospital / polyclinics may not be accessible by MRT. Even if they are assessible by MRT, ferrying a child to nursery, kindegarten, courses, primary school are part of parent responsibility and ease of transportation is important for the family.  Parenthood is a lifelong responsibility. With the crazy prices of car nowadays, more than S$100,000 for a basic family car, how would it be possible for a parent to afford car? There would again be lifelong financial debt on the family. A government incentive would help in this way. Perhaps government could consider giving family with babies or child a 50% discount in the purchase of certificate of entitlement (COE) for cars. The discount could only be used to purchase a basic family car (eg MPV) and the entitlement would be valid for 1 car purchase for each family with baby or child not more than 12 years old. This would go a long way in supporting the family to procreate.

Saturday, August 11, 2012

Warren Buffett - Consumer Products

On 30 Jun 12, I wrote that I had sold off my Johnson and Johnson stocks.

It was reported on 9 Aug 12 that Mr Warren Buffett reduced his holding on consumer products stock which would include stocks like Johnson and Johnson(JNJ) as well as Procter & Gamble (PG).

A concurrence from the great investor on what I did. I am still holding PG though.

Ref: http://www.wealthdaily.com/articles/buffett-reduces-consumer-good-portfolio/3615