1. Tomita ramen founder - not wanting to compromise on his broth. Attention to detail is impeccable!
2. Nick broteli- coach of andre agassi. Tough love.
Thursday, November 1, 2018
Wednesday, October 24, 2018
Monday, October 8, 2018
Maintnq
Maintenance cost is something that eats up budget of any enterprise.
1. Owning a car could run into thousands of dollars in maintenance.
2. Owning a house with amenities
3. Owning gadgets like computers etc
4. Furnitures, kitchen tools
5. Hobbies ie golf guitars
The more one has, the more one has to maintain!
Tuesday, September 4, 2018
2018 Supplemental Retirement Scheme
In Singapore, we cannot afford to ignore setting aside time for retirement planning, especially with the high cost of living and busy lives we lead. Solely relying on the national CPF LIFE scheme to provide us an income during our retirement may not be prudent, or even sufficient, for every person in Singapore.
This is why many Singaporeans continue to save up and invest for their retirement despite having CPF LIFE. The idea is to supplement the basic income that we will receive from CPF LIFE so that we can continue to enjoy a high-quality lifestyle during our golden years.
The Supplementary Retirement Scheme, also known as the SRS, is part of the government’s multi-pronged strategy to address the retirement needs of Singaporeans. While CPF contributions are compulsory, contributions to our SRS accounts are voluntary.
Contributions to the SRS account can be used for investing. They can subsequently be withdrawn to provide an additional source of income once members reach our statutory retirement age of 62.
How Does An SRS Account Work?
Unlike funds in our CPF accounts, that generate risk-free interest of between 2.5% to 5%, contributions made to your SRS account only generate a nominal interest of 0.05% per annum. This is similar to the base interest rates on most bank savings accounts in Singapore.
However, the major advantage SRS offers lies in its tax benefits. Voluntary contributions made to your SRS account are eligible for a dollar-for-dollar tax relief. The annual SRS contribution cap is currently set at $15,300 for Singapore citizens and permanent residents, and $35,700 for foreigners.
Before you consider whether or not an SRS account is suitable for you, here are four important things that you should first determine.
#1 How Much Tax Savings Will I Be Enjoying?
The main reason for opening an SRS account is to enjoy tax savings while saving for retirement. This means you should determine how much income tax you are actually paying each year, before you can calculate how much tax savings you can enjoy should you start contributing to your SRS account.
Here’s a rough estimate on the income tax you can expect to pay based on your annual income, before and after your SRS contribution.
| Annual Income ($) | Typical Income Tax ($) | Income Tax After $15,300 Contribution To SRS ($) | Amount Saved ($) |
| 20,000 | 0 | 0 | 0 |
| 40,000 | 550 | 94 | 456 |
| 60,000 | 1,950 | 879 | 1,071 |
| 80,000 | 3,350 | 2,279 | 1,071 |
| 100,000 | 5,650 | 3,891 | 1,759 |
| 200,000 | 21,150 | 18,396 | 2,754 |
From the table above, it’s clear that people with a higher taxable income have greater incentive to contribute to their SRS account, as they would be able to reduce their income tax by a larger amount.
For example, an individual whose annual income is $200,000 can save up to $2,754 in taxes based on a $15,300 contribution to his/her SRS account. In contrast, an individual whose annual income is $40,000 only saves $456 based on the contribution. This is because Singapore adopts a progressive income tax system, where those with higher income are taxed at a higher rate. Hence, reducing their assessable income translates into greater savings.
For our calculation, we have assumed individuals do not receive any tax relief or personal income tax rebate. For a more precise calculation of how any SRS contribution could reduce your income tax for YA 2017, we encourage you to do a calculation for yourself
You can find out the tax rate and also download a tax excel calculator from the IRAS website.
#2 How You Intend To Invest Your SRS Contribution
As mentioned above, unused contributions in your SRS account will only earn an interest of 0.05% per annum. This means that you should aim to invest your SRS contributions if you want to earn a better return. Otherwise, your savings will be eroded by inflation.
You are able to invest in a wide range of financial instruments depending on your personal preference. These include stocks, bonds, fixed deposits, unit trusts and annuity plans. You can check out the UOB-SRS account webpage to find out the full range of eligible investment products that you use your SRS funds for.
By investing your SRS funds, you will not only enjoy immediate tax savings, but also give yourself the chance to earn a higher return over time.
As with all investments, there is always the possibility losses could be sustained. Hence, it’s important to determine the type of investments you are comfortable making before you start investing with your SRS funds.
#3 Gains On Your Investments Are Tax-Free. However, 50% Of Your Future Withdrawal During Retirement Will Be Taxed
Any gains you make on your SRS investments make will automatically go into your SRS account. These gains are exempted from any income tax until you decide to withdraw the money.
When you reach the statutory retirement age (currently 62), you will enjoy a 50% tax concession for any amount withdrawn from your SRS account.
For example, if an SRS member withdraws $40,000 per annum, only $20,000 (50% of $40,000) will considered as taxable income. If an individual has no other source of taxable income at that age, then he will not have to pay any income tax, since his first $20,000 is tax-free.
SRS members have a ten-year period to make withdrawals from their SRS account. Any amount remaining in the SRS account after 10 years will be automatically considered as a lump sum withdrawal, with 50% of the amount subject to income tax.
Here’s a table below to illustrate how you can optimise withdrawals to minimise any tax payable, if any at all.
Scenario A: Amount in SRS Account at age 62: $400,000
| Year | Amount Withdrawn | Taxable Income | Income Tax |
| 1 | $40,000 | $20,000 | $0 |
| 2 | $40,000 | $20,000 | $0 |
| 3 | $40,000 | $20,000 | $0 |
| 4 | $40,000 | $20,000 | $0 |
| 5 | $40,000 | $20,000 | $0 |
| 6 | $40,000 | $20,000 | $0 |
| 7 | $40,000 | $20,000 | $0 |
| 8 | $40,000 | $20,000 | $0 |
| 9 | $40,000 | $20,000 | $0 |
| 10 | $40,000 | $20,000 | $0 |
| Total | $400,000 | $200,000 | $0 |
Scenario B: Amount in SRS Account at age 62: $400,000
| Year | Amount Withdrawn | Taxable Income | Income Tax |
| 1 | $80,000 | $40,000 | $550 |
| 2 | $0 | $0 | $0 |
| 3 | $80,000 | $40,000 | $550 |
| 4 | $0 | $0 | $0 |
| 5 | $80,000 | $40,000 | $550 |
| 6 | $0 | $0 | $0 |
| 7 | $80,000 | $40,000 | $550 |
| 8 | $0 | $0 | $0 |
| 9 | $80,000 | $40,000 | $550 |
| 10 | $0 | $0 | $0 |
| Total | $400,000 | $200,000 | $2,750 |
Comparing Scenario A & B
| Scenario A | Scenario B | |
| Total Amount Withdraw | $400,000 | $400,000 |
| Total Taxable Income | $200,000 | $200,000 |
| Actual Income Tax | $0 | $2,750 |
Even though both scenarios had a total of $400,000 withdrawn from the SRS account over a ten-year period, Scenario A allows SRS member to avoid paying any income tax. This is why you should also plan your withdrawals carefully.
#4 Penalty For Early Withdrawal
The biggest caveat against the SRS account is that withdrawals made before the statutory retirement age will be subjected to a 5% penalty. In addition, 100% of the amount withdrawn will be taxable.
For example, if you withdraw $10,000 from your SRS account before the age of 62, you will incur a penalty of $500 (5%). The full amount of $10,000 will also be added to your taxable income for the year.
In our opinion, you should only contribute funds to your SRS account if you are fairly confident that you wouldn’t need the money in the future. Otherwise, the 5% penalty on early withdrawal may cancel out any tax savings you enjoyed in the first place.
However, if withdrawal is made under exceptional circumstances such as death, medical grounds, bankruptcy or by a foreigner who has maintained his SRS account for at least 10 years from the date of his first contribution, then the 5% penalty for early withdrawal will not apply.
Our Analysis: SRS Is A Useful Way To Grow Your Retirement Funds And Save Money On Tax For Higher Income Earners
By now, the value proposition for the SRS should be fairly clear. If you are a mid to high-income earner, with a taxable income of $60,000 or more, you can consider contributing to your SRS account, and to save some money on your tax.
For example, an individual with a taxable income of $60,000 will save about $1,070 in his income tax when he contributes $15,300. This savings is immediate.
In the unlikely scenario that that he/she needs to withdraw the money in the future (e.g. unemployment), his 5% penalty of $765 would still be lower than the tax savings in the first place. While this is not an ideal scenario, it also illustrates how the SRS can be an effective tax savings mechanism for mid to high-income earners.
If you have not started an SRS account but are interested to know how much it could potentially save you in tax for YA 2017, you can check out the UOB-SRS Account which provides a simple SRS tax calculator. For customers who do not have a SRS account yet, they can visit any UOB Group Branch to open a UOB SRS Account. For existing UOB-SRS customers, they can login to UOB Personal Internet Banking to top up/make contribution or even invest.
Just remember, if you wish to enjoy any tax savings for 2017, you will need to contribute your SRS contribution by 31 December 2017.
Monday, July 23, 2018
Our College Dean when I was an Engineering Student!
Interview: Reynaldo Vea, PhD (Academic Administrator, Engineer, Scholar)
We have opened discussions in our website with all kinds of leading medical doctors, and with the best among them, there is a clear recognition that for our health care to improve, we have to have thriving manufacturing industries (good jobs are crucial to good health), research (to be at the cutting edge of knowledge for health, but as a consequence in order to start real manufacturing), and quality basic science education (in order to build a culture of producing goods and knowledge). We are starting a series of interviews with those who can start the conversation from a non-medical doctors point of view, from academics, industrialist, politicians. We start this series with Reynaldo Vea, Ph.D, who is the President and CEO of Mapua Institute of Technology. He graduated from the University of the Philippine with a degree in Mechanical Engineering. He earned his Master’s Degree in Naval Architecture and Marine Engineering at the Massachusetts Institute of Technology, and his Doctorate Degree in Engineering at the University of California at Berkeley.
You are an engineer, teacher, administrator, scholar: which one is your predominant role for you?
First and foremost I have always been an administrator of schools. I did professional practice for a short time, but never in the Philippines. I designed off-shore supply vessels for the Gulf of Mexico. I designed container ships and tankers as well in San Francisco. But this was not for any long period, as I immediately came back to the Philippines to begin my academic career in the University of the Philippines.
First and foremost I have always been an administrator of schools. I did professional practice for a short time, but never in the Philippines. I designed off-shore supply vessels for the Gulf of Mexico. I designed container ships and tankers as well in San Francisco. But this was not for any long period, as I immediately came back to the Philippines to begin my academic career in the University of the Philippines.
What was the motivation in coming back to the Philippines after having earned your degrees in the United States? Or did you belong to the generation that still wanted to come back?
Basically we wanted to contribute to building the research capability of the country. We did hear about many coming back and getting very frustrated because the research infrastructure was not there, and so they go back to the United States. We wanted to break that cycle. When we came back, there were no vacant positions in UP, and they could not give us the title assistant professor. We jokingly referred to ourselves as api , the Filipino word for oppressed, which we used as an acronym to stand for the association of permanent instructors, because we were still pegged as instructors in the University of the Philippines, in spite of the fact that we already earned our masteral and doctorate degrees. But the administration moved quickly and gave us support.
Basically we wanted to contribute to building the research capability of the country. We did hear about many coming back and getting very frustrated because the research infrastructure was not there, and so they go back to the United States. We wanted to break that cycle. When we came back, there were no vacant positions in UP, and they could not give us the title assistant professor. We jokingly referred to ourselves as api , the Filipino word for oppressed, which we used as an acronym to stand for the association of permanent instructors, because we were still pegged as instructors in the University of the Philippines, in spite of the fact that we already earned our masteral and doctorate degrees. But the administration moved quickly and gave us support.
Engineering is now the priority for many things and programs in the University of the Philippines. During the term of President Gloria Arroyo, she donated a big sum for the infrastructure of engineering.
Yes, but it started long ago, it was a long process, which we can see the fruits only now. During my time there, in the 1990s, because the stars were somehow aligned that the president of the university, Dr. Emil Javier, is a scientist; and the President of the Philippines was Fidel Ramos, who is an engineer: it was at that time that the concerted effort to build the student base, the infrastructure, the profile of engineering was really strongly pushed. We presented even at the level of the president’s cabinet as to a national vision for the University of the Philippines School of Engineering. The land earmarked for engineering where the buildings are now being built came from that time. But a lot of ground work was also already done at the time of then Dean Francisco Viray, who I served as associate dean. Dean Viray of course eventually became Secretary of Energy during the term of President Ramos.
Yes, but it started long ago, it was a long process, which we can see the fruits only now. During my time there, in the 1990s, because the stars were somehow aligned that the president of the university, Dr. Emil Javier, is a scientist; and the President of the Philippines was Fidel Ramos, who is an engineer: it was at that time that the concerted effort to build the student base, the infrastructure, the profile of engineering was really strongly pushed. We presented even at the level of the president’s cabinet as to a national vision for the University of the Philippines School of Engineering. The land earmarked for engineering where the buildings are now being built came from that time. But a lot of ground work was also already done at the time of then Dean Francisco Viray, who I served as associate dean. Dean Viray of course eventually became Secretary of Energy during the term of President Ramos.
Do we have research projects from the University of the Philippines that we can show the world and be proud of?
From what I have read of what are on stream, we may not be in the map yet, but for sure we have the PhDs who are capable of high quality research. I have no doubt something will come out of it, but we also have to set up the infrastructure, which I think they are doing in the University of the Philippines, for the commercialization of the research output. There is a real and credible improvement moving towards producing very high quality research. There is a technology transfer office now in the University. In the area of Radio Frequency Identification (RFID), or the transfer of data using the magnetic field, there are interesting advances. In the area of optics in hard disk drives there are also interesting advances.
From what I have read of what are on stream, we may not be in the map yet, but for sure we have the PhDs who are capable of high quality research. I have no doubt something will come out of it, but we also have to set up the infrastructure, which I think they are doing in the University of the Philippines, for the commercialization of the research output. There is a real and credible improvement moving towards producing very high quality research. There is a technology transfer office now in the University. In the area of Radio Frequency Identification (RFID), or the transfer of data using the magnetic field, there are interesting advances. In the area of optics in hard disk drives there are also interesting advances.
When we train great engineers, do we have jobs for them when they are done with their studies?
The semiconductor industry and the electronics industry have been pleading for more and better engineers all the time. They are crying out for people who have advanced degrees. Of course if we want to move up the value chain in electronics, we will really need engineers who have advanced degrees.
The semiconductor industry and the electronics industry have been pleading for more and better engineers all the time. They are crying out for people who have advanced degrees. Of course if we want to move up the value chain in electronics, we will really need engineers who have advanced degrees.
Are we still at the level of assembling chips?
No, we are already producing products based on chips that are competitive globally. Integrated Microelectronics Incorporated of Ayala is ranked eighth worldwide in the microelectronics industry, which is great, but overall the developments have not been fast enough.
No, we are already producing products based on chips that are competitive globally. Integrated Microelectronics Incorporated of Ayala is ranked eighth worldwide in the microelectronics industry, which is great, but overall the developments have not been fast enough.
Is manufacturing still possible in the Philippines?
I think the stumbling block right now is China. They still manage to manufacture at a very low cost. It will be very difficult for us to compete. However, the wages in China are said to be rapidly increasing, and maybe that will present us with an opportunity. But we can’t just have the engineers, we also have to have highly trained educators, researchers, managers, industrial park designers. It takes a lot to have that system, culture, and infrastructure that can produce ground breaking technology-based products.
I think the stumbling block right now is China. They still manage to manufacture at a very low cost. It will be very difficult for us to compete. However, the wages in China are said to be rapidly increasing, and maybe that will present us with an opportunity. But we can’t just have the engineers, we also have to have highly trained educators, researchers, managers, industrial park designers. It takes a lot to have that system, culture, and infrastructure that can produce ground breaking technology-based products.
I have heard Dr. Roger Posadas arguing that South Korea and Taiwan are great models for the Philippines, but I argued that the United States poured in large amounts of money to help these two countries because of the cold war politics at that time.
Well yes, there is one factor that we don’t have; there are no Filipino engineers and managers in significant numbers, and if we have them studying and working abroad, we want them to come back and sacrifice, and with government support, to build and innovate here.
Well yes, there is one factor that we don’t have; there are no Filipino engineers and managers in significant numbers, and if we have them studying and working abroad, we want them to come back and sacrifice, and with government support, to build and innovate here.
Morris Chang is an incredible story, of bringing chip manufacturing to Taiwan. He isn’t even an entrepreneur, but with government help, he was able to build Taiwan Semiconductor Manufacturing Company Limited (TSMC), which has become a global powerhouse in manufacturing.
They did a study in UC Berkeley and they took snap shots of the first and second generation leaders in research, engineering, and management of Silicon Valley. The Filipinos are just not there in substantial numbers. While people from India, Taiwan, Japan, South Korea are there, and many of them went back to their country, using their connections in the United States, to build industry in their home countries.
We also need to scale, as the UNESCO benchmark would say we need 34,000 research scientist and engineers for our population of 100 million, and DOST last calculated that we only have 13,000. So how do you jump from 13,000 to 34,000? And the ideal of course is for that 34,000 to have PhDs. We can do it in 10 years if we produce around 2,500 PhDs a year: again, the question is how do we do that? You have to send out at least 2,000 scholars to do their PhDs every year. The government we now know has the money, but the money just ends up in the wrong hands.
They did a study in UC Berkeley and they took snap shots of the first and second generation leaders in research, engineering, and management of Silicon Valley. The Filipinos are just not there in substantial numbers. While people from India, Taiwan, Japan, South Korea are there, and many of them went back to their country, using their connections in the United States, to build industry in their home countries.
We also need to scale, as the UNESCO benchmark would say we need 34,000 research scientist and engineers for our population of 100 million, and DOST last calculated that we only have 13,000. So how do you jump from 13,000 to 34,000? And the ideal of course is for that 34,000 to have PhDs. We can do it in 10 years if we produce around 2,500 PhDs a year: again, the question is how do we do that? You have to send out at least 2,000 scholars to do their PhDs every year. The government we now know has the money, but the money just ends up in the wrong hands.
Will these engineers come back if we send them abroad to study?
The record has actually been good. I worked administratively as associate dean to send 20 scholars abroad for their PhDs, and everyone came back, except for one, and the only one who did not come back paid the University for his studies. We should not be scared. People do come back. To stay here is not only a question of monetary rewards, you also have to give them an environment where they can find fulfillment.
The record has actually been good. I worked administratively as associate dean to send 20 scholars abroad for their PhDs, and everyone came back, except for one, and the only one who did not come back paid the University for his studies. We should not be scared. People do come back. To stay here is not only a question of monetary rewards, you also have to give them an environment where they can find fulfillment.
So when they come back, don’t get them stuck in teaching Physics 101?
Or worse, make them academic administrators. (Laughter)
Or worse, make them academic administrators. (Laughter)
How does the University of the Philippines compare with say other top ASEAN universities like the National University of Singapore? Are we okay?
Yes, no doubt we are okay. Our problem is we have too few of our students and faculty going out for their PhDs. But those who do go out to earn their PhD, most do well academically, so that is already an indicator that we are not missing anything in our own universities. I myself when I went to the Massachusetts Institute of Technology found that my training here in the Philippines prepared me well for what I had to face abroad.
Yes, no doubt we are okay. Our problem is we have too few of our students and faculty going out for their PhDs. But those who do go out to earn their PhD, most do well academically, so that is already an indicator that we are not missing anything in our own universities. I myself when I went to the Massachusetts Institute of Technology found that my training here in the Philippines prepared me well for what I had to face abroad.
In going to MIT, what struck you most that made you realize, this is a First World institution?
For sure it is their research. Of course when in UP we were analyzing motion of bodies, for example, in 2D, while in the MIT it was already in 3D, so there was the facilities advantage, but this was because this was MIT, as most universities at that time in the US were also still using 2D. And of course in their undergraduate engineering, they already had advanced engineering mathematics. But other than that, there is not much difference. I do remember they did really overload the students with reading materials.
For sure it is their research. Of course when in UP we were analyzing motion of bodies, for example, in 2D, while in the MIT it was already in 3D, so there was the facilities advantage, but this was because this was MIT, as most universities at that time in the US were also still using 2D. And of course in their undergraduate engineering, they already had advanced engineering mathematics. But other than that, there is not much difference. I do remember they did really overload the students with reading materials.
When you say overload, does this mean it was still humanly possible to digest all the materials given?
No, impossible to digest everything. But that is the atmosphere they want, the atmosphere is very competitive. The best will survive. The system in MIT was called being graded on a curve, so some are sure to get As, and a certain number flunk. They like to say getting an education in MIT is like drinking from a fireman’s hose. You won’t be able to catch everything.
No, impossible to digest everything. But that is the atmosphere they want, the atmosphere is very competitive. The best will survive. The system in MIT was called being graded on a curve, so some are sure to get As, and a certain number flunk. They like to say getting an education in MIT is like drinking from a fireman’s hose. You won’t be able to catch everything.
I remember listening to an entrepreneur who has made it big saying the only advantage he had of going to MIT was that in college in another university, he was thought of as the smartest guy in class. When he went to MIT for his masteral degree, his first exam grade was so low, he ended up locking himself in the dorm to cry. He said the humbling experience has been good for him.
Oh yes, there are many stories like that. It really happens.
Oh yes, there are many stories like that. It really happens.
Is this why some of the research of their graduate students are good?
Yes, but it is not just that: but there is a whole organized effort to support, publish, commercialize the research results. You become just part of a large undertaking. Even if you just contribute a small but original research to this large undertaking, then you become part of a big breakthrough. It is not just one individual in a lab, although there is that as well.
Yes, but it is not just that: but there is a whole organized effort to support, publish, commercialize the research results. You become just part of a large undertaking. Even if you just contribute a small but original research to this large undertaking, then you become part of a big breakthrough. It is not just one individual in a lab, although there is that as well.
How was your transition from U.P . to Mapua?
Well, when I first came I had the reflexes of an administrator of a state university. Mapua’s existence is only made possible by its wits, since it is a private enterprise, meaning unlike a state university which will always have a budget no matter how small, we have to find a way to generate resources to keep the school going and to keep upgrading. I have been lucky that the stockholders of Mapua have been very supportive. In my first year here there was hardly any computer, within a year we had almost 2000 computers. We were the first to get a gigabit network, when no one else had one. We invested a lot in infrastructure. Our proposals to keep improving the standards are all supported by the school’s owners. Of course UP has changed now, and faculty can also now propose ambitious projects. We were also the first school in the Philippines to be accredited by the US-based engineering school accreditation body. We have also raised the profile of the faculty. We now have the full-range of the masters programs in engineering, and we have five PhD programs.
Well, when I first came I had the reflexes of an administrator of a state university. Mapua’s existence is only made possible by its wits, since it is a private enterprise, meaning unlike a state university which will always have a budget no matter how small, we have to find a way to generate resources to keep the school going and to keep upgrading. I have been lucky that the stockholders of Mapua have been very supportive. In my first year here there was hardly any computer, within a year we had almost 2000 computers. We were the first to get a gigabit network, when no one else had one. We invested a lot in infrastructure. Our proposals to keep improving the standards are all supported by the school’s owners. Of course UP has changed now, and faculty can also now propose ambitious projects. We were also the first school in the Philippines to be accredited by the US-based engineering school accreditation body. We have also raised the profile of the faculty. We now have the full-range of the masters programs in engineering, and we have five PhD programs.
What kind of engineers does Mapua produce?
I think we produce engineers that are out in the field, the problem solvers of the industries that require engineering. Our students, when they graduate, I think tend to stay in engineering for a long time. But we also want to go beyond that, and so we have a building that will be finished soon, which is a building that will be devoted to research.
I think we produce engineers that are out in the field, the problem solvers of the industries that require engineering. Our students, when they graduate, I think tend to stay in engineering for a long time. But we also want to go beyond that, and so we have a building that will be finished soon, which is a building that will be devoted to research.
Are we able to retain young engineers in the country?
Many leave, but what can we do but to keep training engineers.
Many leave, but what can we do but to keep training engineers.
We are a population of 100 million. Even Israel, a very small country, admittedly a great recipient of US money, has been able to scale their software development for example. People were saying in that Roger Posadas talk in the Diliman Book Club that maybe what we have is a cultural problem. The culture of consumption is just too strong now, for example.
If you read Nick Joaquin on our supposed culture of smallness, maybe there is some validity in that. We are not ambitious enough. Japan in the 1950s was being laughed at. People said, don’t even buy toys made in Japan, as it was supposed to be of such bad quality it was dangerous to a child’s health. Samsung of Korea was considered low end.We have to want to make it badly enough, the way these countries did when they decided they wanted to become an export-led industrial country.
If you read Nick Joaquin on our supposed culture of smallness, maybe there is some validity in that. We are not ambitious enough. Japan in the 1950s was being laughed at. People said, don’t even buy toys made in Japan, as it was supposed to be of such bad quality it was dangerous to a child’s health. Samsung of Korea was considered low end.We have to want to make it badly enough, the way these countries did when they decided they wanted to become an export-led industrial country.
Maybe we should just give up, for those of us interested in manufacturing. I read an article where John Gokongwei said the best chance of the Philippines in manufacturing was up to the 1970s, and after that, the chance passed us already. Dado Banatao in the ASEAN Integration forum organized by the AIM basically answered my question by saying it is impossible for us to have a real manufacturing, since even Singapore has given up on this.
I disagree. The story is never finished. No outsider would have been able to predict the South Korea of today just 50 years ago, or the China of today just 30 years ago. The face of manufacturing is changing. If you can plan for the coming changes, like hyper automation, maybe you have a chance. The systems and process do not remain static and unchanging forever.
For me we just have to get the politics right, maybe that is not the right term, but we need some kind of process of maturation. We must also remember that the story is not yet over. Countries which supposedly got it right, also sometimes unravel all of a sudden; those considered hopeless are suddenly emerging as industrial giants in spite of say their size, or previous leaders.
I disagree. The story is never finished. No outsider would have been able to predict the South Korea of today just 50 years ago, or the China of today just 30 years ago. The face of manufacturing is changing. If you can plan for the coming changes, like hyper automation, maybe you have a chance. The systems and process do not remain static and unchanging forever.
For me we just have to get the politics right, maybe that is not the right term, but we need some kind of process of maturation. We must also remember that the story is not yet over. Countries which supposedly got it right, also sometimes unravel all of a sudden; those considered hopeless are suddenly emerging as industrial giants in spite of say their size, or previous leaders.
What can industries do?
I think industries should just tackle the basic issue of productivity, we have to increase our productivity. We have to educate our labor force to be better, more productive, and more imaginative.
I think industries should just tackle the basic issue of productivity, we have to increase our productivity. We have to educate our labor force to be better, more productive, and more imaginative.
If you look at the instability of economies in Europe, you can see the most stable is Germany because of manufacturing. In Asia, Korea is also powered by manufacturing, even if they are greatly threatened by China.
Yes, you really need to create things. Harry Turman, after World War II, when he was president of the United States, asked what were they going to do now that the war was over and there was so much they had developed in the sphere of technology because of the war. Vannevar Bush, the inventor of the radar and vice president of MIT, answered in his capacity as one of the key advisers on science to the government, that their national mission was to dominate commerce through science and research. Basic research in schools and applied research in industry have become cornerstones in the rapid growth of the United States after World War II. You really have to work on the basic science before you talk about anything else. We must also realize that it did not happen overnight for the United States. There was a lot of preparation and confluence of events.
Yes, you really need to create things. Harry Turman, after World War II, when he was president of the United States, asked what were they going to do now that the war was over and there was so much they had developed in the sphere of technology because of the war. Vannevar Bush, the inventor of the radar and vice president of MIT, answered in his capacity as one of the key advisers on science to the government, that their national mission was to dominate commerce through science and research. Basic research in schools and applied research in industry have become cornerstones in the rapid growth of the United States after World War II. You really have to work on the basic science before you talk about anything else. We must also realize that it did not happen overnight for the United States. There was a lot of preparation and confluence of events.
What books would you like to share with our readers.
I forgot the title, but there is collection of science fiction stories by MIT professors and students I thought was very good in showing me the future, or at that time the immediate near future. I thought the collection was amazingly accurate in many of the speculations of the authors about the future. Nicolas Negroponte’s Being Digital may be a bit dated, but I thought it was very perceptive in showing the relationship of technology and society. These two books I would recommend to anyone interested in issues about technology and the future.
I forgot the title, but there is collection of science fiction stories by MIT professors and students I thought was very good in showing me the future, or at that time the immediate near future. I thought the collection was amazingly accurate in many of the speculations of the authors about the future. Nicolas Negroponte’s Being Digital may be a bit dated, but I thought it was very perceptive in showing the relationship of technology and society. These two books I would recommend to anyone interested in issues about technology and the future.
There is now some criticism of these young and new billionaires channeling their wealth to space exploration and some such grand projects. Some argue the money is best spent elsewhere, and these capitalists are now determining the science agenda by the sheer fact that they have the resources. What do you think?
Science is always about exploration. I am all for it. If we stop exploring, what will happen to the human species?
Science is always about exploration. I am all for it. If we stop exploring, what will happen to the human species?
Many of the doctors we have talked to, like ophthalmologist Harvey Uy, like you, talk a lot about the need for a good basic science education. Please give us an idea what is a good teacher. Who are your good teachers in engineering? Why were they good? What is a good basic science education?
Edgardo Pacheco and Oscar Baguio were my favorite engineering teachers. You take their exam without a calculator or a slide rule, and maybe you can finish the exam in 15 minutes. They were not worried about your not having to do a lot of numbers crunching, but it is really the principle behind the problem that they want you to understand, not the numbers crunching. I look back and realize their exams were really elegant and well-thought out. They were very committed teachers. They really provide students with the right environment to learn. You could really see their commitment to teaching.
Edgardo Pacheco and Oscar Baguio were my favorite engineering teachers. You take their exam without a calculator or a slide rule, and maybe you can finish the exam in 15 minutes. They were not worried about your not having to do a lot of numbers crunching, but it is really the principle behind the problem that they want you to understand, not the numbers crunching. I look back and realize their exams were really elegant and well-thought out. They were very committed teachers. They really provide students with the right environment to learn. You could really see their commitment to teaching.
Friday, July 13, 2018
PHI BIZ MODEL - somethings not right!
MY QUESTIONS:
1. Why is the country not making products for export other than Forest products and Electronics??? Something is not right is a country relies on this kind of import export profile. 2. Why can't we export other industrial products? 3. If a country wants to be an industrial powerhouse, then a strategic shift ought to be made now in order to compete globally, else we will remain in the doldrums forever! Or could it be that the domestic consumption is good enough to drive the economy forward??
IMPORT PROFILE:
1. Imports grew 11.4 percent, to surpass $9 billion for the first time, driven by mineral fuels, lubricants and related materials, capital goods, consumer goods, and raw materials and intermediate goods.
EXPORT PROFILE:
1. Only forest products posted gains (77.8 percent) to register their 19th month of consecutive growth.
2. Exports of plywood grew by 167.8 percent, with shipments sent mainly to Japan and the US Exports of lumber grew by 49.8 percent, which were shipped mainly to Japan and China.
3. Agro-based products, manufactures, mineral and petroleum products continued to register negative growth during the month.
4. Electronic products, which accounted for 64.9 percent of manufactures exports in May, registered a slight gain of 2.3 percent
PH trade deficit hits 5-month high
Updated
The country’s trade deficit widened further in May to a five-month high, adding further strain on the peso that has been hovering at more than a decade lows, data from the Philippine Statistics Authority (PSA) showed Tuesday.
Trucks transporting containers with imported items are prepared to leave a port in Manila, Philippines.
(REUTERS/Erik De Castro / MANILA BULLETIN FILE PHOTO)
(REUTERS/Erik De Castro / MANILA BULLETIN FILE PHOTO)
The Philippine trade balance widened to a 6.3 percent deficit amounting to $3.7 billion, the PSA reported, the highest level since December, and followed a downwardly revised $3.48 billion gap in April.
Imports of goods climbed 11.4 percent to surpass $9 billion for the first time, while exports shrank 3.8 percent to $5.7 billion in May, marking the fifth straight month of decline.
In a statement, the National Economic and Development Authority (NEDA) said the increase in inbound purchases were driven by mineral fuels, lubricants and related materials, capital goods, consumer goods, and raw materials and intermediate goods.
On the other hand, NEDA said that the contraction in merchandise exports slowed in May partly supported by sustained growth in overseas sale of forest products.
Among the major commodity groups, only forest products posted gains (77.8 percent) to register their 19th month of consecutive growth.
Exports of plywood grew by 167.8 percent, with shipments sent mainly to Japan and the US Exports of lumber grew by 49.8 percent, which were shipped mainly to Japan and China.
Agro-based products, manufactures, mineral and petroleum products continued to register negative growth during the month.
Electronic products, which accounted for 64.9 percent of manufactures exports in May, registered a slight gain of 2.3 percent.
Socioeconomic Planning Secretary Ernesto M. Pernia said that addressing cumbersome regulations, enhancing trade facilitation, and ensuring better access to trade finance will help improve the country’s business climate for exports.
“The recent passage of the Ease of Doing Business Act of 2018 should promote trade as it aims to reduce bureaucracy and corruption, factors which weigh down on economic activity. Its timely implementation is needed to improve trade facilitation,” Pernia said.
He added that opportunities from free trade agreements (FTAs) should also be maximized by facilitating programs that will increase awareness of industry players on the benefits of these agreements.
The import-driven trade gap is expected to worsen the current account deficit this year, which could spell more trouble for the peso, one of Asia’s worst performers this year.
“The widening trade deficit will continue to put downward pressure on the peso, which has already been depreciating against the U.S. dollar during 2017 and first half of 2018,” said Rajiv Biswas, Asia Pacific Chief Economist at HIS Markit.
The peso, which slightly weakened to 53.49 per dollar in morning trade Tuesday, has lost more than six percent against the dollar so far his year due to rising interest rates in the US and deterioration of the Philippines’ external account.
For the whole year, imports were expected to grow 11 percent driven by demand for capital and consumer goods, while exports were projected to rise 10 percent, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP expects the country to end the year with a current account deficit of $3.1 billion, wider than an earlier forecast of $700 million, and higher than the previous year’s $2.52 billion gap.
The Philippines, like other Asian economies that have external deficits, is under pressure to follow the U.S. Federal Reserve in shifting away from low interest rate settings or risk capital flight as investors seek higher yielding assets.
Joey Cuyegkeng, economist at ING bank, said the peso’s decline “could worsen in the absence of a decisive monetary response to rising inflation.”
The central bank raised interest rates last month for the second time in six weeks to tame inflation, becoming the region’s second central bank to deliver two hikes in a short time, after Indonesia.
Khoon Goh, head of Asia research at ANZ, said in a tweet he expects the peso to weaken further to 54 to the dollar by year end. That would be the lowest in 13 years. (Reuters with Chino S. Leyco)
Monday, June 25, 2018
Investing in Overseas Market
URL: https://dollarsandsense.sg/singaporeans-can-start-investing-overseas-stocks-looking-companies-around-us/
This article was written in collaboration with OCBC Securities. All views expressed in this article are the independent opinion of DollarsAndSense.sg
Investing in overseas stocks may be intimidating to new investors. Even for those of us who have already started investing in companies listed on the Singapore Exchange (SGX), we may still feel that foreign-listed stocks require us to venture beyond our comfort zone.
To overcome our inertia to foreign investments, we need to turn this from an unknown quantity into a known one. The easiest way to do so is to simply observe the world around us.
Investing In The World Around Us
Each morning, we wake up from our Sealy Posturepedic (Sealy International, Inc.) beds wishing we could spend just five more minutes sleeping. After washing up, we rush to catch the perennially packed bus.
On our way to work, we’re already Googling (Alphabet Inc) our next holiday ideas on our iPhones (Apple Inc.). We look out the window just in time to see a shiny new Volvo (Geely Automobile) zoom past the bus…maybe we should save up for a car so we don’t have to squeeze with everyone every morning.
During lunch, we go to McDonald’s (McDonald’s Corporation), even upsizing our fries and Coca Cola (The Coca Cola Co). In our minds, we promise to finally go for that run later in the evening with our new pair of Nike (Nike Inc) trainers.
While eating, we revel about how epic the upcoming Marvel (Walt Disney Co) universe movie Ant Man is going to be. Instead, our colleagues seem more interested in finding the best deals on Taobao (Alibaba Group) and Amazon (Amazon.com, Inc.).
By midday, most of us start nodding off at our desk. Saving our work on Dropbox (Dropbox Inc), we head out for our daily Starbucks (Starbucks Corporation) fix. Flashing our new HSBC (HSBC Holdings) credit card on the Visa payWave (Visa Inc) machine certainly made it feel like an easier transaction.
Returning home from work, we eagerly await tuning into Netflix (Netflix, Inc.) or logging on to our gaming laptop, the Lenovo Legion (Lenovo Group) to play our favourite first-person shooter game. All that will have to wait for now – we’re going to watch the FIFA World Cup on our big screen Sony (Sony Corp) television set!
After celebrating our favourite team’s performance, we brush our teeth with the Advanced Whitening Colgate (Colgate-Palmolive Company) and tuck into bed. Before we doze off for the night, we log on to Facebook (Facebook, Inc.), WeChat (Tencent Holdings) and Snapchat (Snap Inc) to see what our friends have been up to.
If you haven’t caught on, this typical routine many of us live on a daily basis sees us interacting with some of the largest blue-chip or most exciting foreign-listed companies globally.
Starting Our Overseas Investment Journey
Compared to the market capitalisation of SGX, the New York Stock Exchange (NYSE) is close to 30 times larger with over 2,400 listed companies, the London Stock Exchange (LSE) is nearly six times larger with 2,500 listed companies and the Hong Kong Stock Exchange (HKEX) is five times larger with nearly 2,500 listed companies.
When you couple this with the fact that the companies that we engage with on a daily basis are also the ones listed on many of these overseas stock exchanges, it doesn’t feel as daunting to start investing in overseas stocks.
Moreover, these are also the companies that are likely to be the most highly-traded and researched companies. This provides us with both liquidity and extensive information to make our investment decisions.
It’s also fair to assume that if we frequently purchase products and services from a certain brand, we would be even more keen to put in extra research to better understand the company. This allows us to become savvier consumers as well as puts us in a better position to ascertain the company’s investment merits.
We’ll be more aware of a company’s competitors as well as be in-tuned to any technological advancements or pain points in the industry. This helps us gauge a company’s current operational strength and long-term business viability. It also smoothens the process of monitoring and rebalancing your portfolio as an investor.
Rather than to look at it as a hurdle, we should view overseas investments as essential to diversifying and strengthening our investment portfolio with highly-traded multinational blue-chip companies.
Which Stock Brokerage Account Should I Use?
This is an important question, as choosing the right brokerage platform can help an investor significantly in his or her overseas investment journey.
Here are some relevant questions that you should be asking to determine this.
Local VS Foreign Stock Brokerage House?
While it’s possible to open a brokerage account in the overseas market that you wish to invest in, you should first consider choosing a local brokerage platform.
The main reason is convenience. If you already have a stock brokerage account with a local brokerage house, it’s simpler to continue using them for your overseas investments. Even if you start off by investing in overseas stocks, it’s likely that you will invest in local stocks at some point in the future.
By using a local brokerage account, you gain access to both overseas and local stock exchangeson a single brokerage platform. This way, you buy and sell stocks on the same platform, you also pay for your investments the same way, and you get to monitor your entire portfolio on one app, regardless of whether it’s a local or foreign stock.
Access To Multiple Overseas Markets
If you are intending to invest in overseas stocks, you want to choose a brokerage account that provides you access to multiple markets, not just one.
For example, OCBC Securities enables customers to trade on 15 global exchanges — including the NYSE and Nasdaq in the US, the HKEX in Hong Kong and the Bursa Malaysia – just as easily as they would for Singapore-listed stocks on its iOCBC online platform and mobile app. Customers can gain access to even more global exchanges by calling their OCBC Securities Trading Representative.
Subscribe to:
Posts (Atom)