There are 70,000 bridges in the USA. One bridge in Minneapolis collapsed last week, killing a few people. Some are still missing.
Is this an isolated incident? A bad accident?
Apparently, it seems that the condition of many of the bridges are unsatisfactory. There is a wider problem.
Many years ago, it was considered to be the duty of the government to provide the public works and utilities. There was no issue about the costs (although the government do manage them quite prudently). These public expenditure were considered to be necessary and beneficial.
The priority changed during the past 20 years. The governments tried to adopt business principles, using cost-benefit analysis. Some of the expenditures were reduced, as they were felt to be unnecessary. Some activities, e.g public transport and hospitals, were privatised to be runned by profit-driven entrerprises.
The outcome was a deterioration in the quality of the infrastructure and public services in many countries. There was a focus on cutting costs and increasing profits, instead of the public interest.
I hope that there will be a change in thinking, and that governments will move away from the concept of adopting business principles for public service.
Monday, August 6, 2007
Sunday, August 5, 2007
Waiting time for public buses
The Public Transport Council in Singapore has set a standard on the waiting time for public buses during peak periods.
In my view, they should focus on the following indicators:
* getting buses to keep to a schedule
* ensuring that the buses are not over-crowded
In other countries, most buses run on a time schedule. There may be only a few services in a day. The passengers know the expected arrival time and can plan their travelling according to this schedule. The buses are not full, so everyone has a seat.
In my view, they should focus on the following indicators:
* getting buses to keep to a schedule
* ensuring that the buses are not over-crowded
In other countries, most buses run on a time schedule. There may be only a few services in a day. The passengers know the expected arrival time and can plan their travelling according to this schedule. The buses are not full, so everyone has a seat.
Saturday, August 4, 2007
Common Sense and your Blue Rose
Some inspirational advice from Dr. Lee Kum Tatt to NUS Chemistry graduates and their parents at the Graduation Ceremony in 2006. Read what Dr. Lee said in his address in his blog.
Friday, August 3, 2007
Level premium for Shield plan
Dear Mr Tan,
I understand that the premium for the Shield plan varies according to the current age. It means that I have to pay a higher premium when I grow older. The increase can be quite steep. Is it possible for me to pay a level premium?
REPLY:
It is true you have to pay a higher premium when you grow older. To get an idea about the likely amount, you can refer to section 15 of this FAQ.
It is not possible for the insurance company to charge a level premium, as the premium rate has to be revised according to the claim experience. It is likely that the cost of treatment will increase in the future, due to new technology and more sophisticated method of treatment.
The premium will increase due to two factors - increase in your age (as older people need more treatment) and escalation of treatment cost.
Although you pay an increasing premium, you can use your CPF Medisave account to level out the cost. You should keep sufficient money in this account to pay for all of your future cost. It allows you to earn interest on the balance in your account.
You also have the choice to downgrade to a less costly plan, when you grow older. This option is available only if you have a plan with a yearly adjustible premium.
I understand that the premium for the Shield plan varies according to the current age. It means that I have to pay a higher premium when I grow older. The increase can be quite steep. Is it possible for me to pay a level premium?
REPLY:
It is true you have to pay a higher premium when you grow older. To get an idea about the likely amount, you can refer to section 15 of this FAQ.
It is not possible for the insurance company to charge a level premium, as the premium rate has to be revised according to the claim experience. It is likely that the cost of treatment will increase in the future, due to new technology and more sophisticated method of treatment.
The premium will increase due to two factors - increase in your age (as older people need more treatment) and escalation of treatment cost.
Although you pay an increasing premium, you can use your CPF Medisave account to level out the cost. You should keep sufficient money in this account to pay for all of your future cost. It allows you to earn interest on the balance in your account.
You also have the choice to downgrade to a less costly plan, when you grow older. This option is available only if you have a plan with a yearly adjustible premium.
Application of Laws of Chemistry to Our Everyday Life
Dr. Lee Kum Tatt has written many articles in his blog on the philosophy of science and how this together with our culture and values affect our lives. He has just written an article on how to use chemistry laws to solve everyday problems. This article is meant for our amusement the contents of which can only have been written by a fanatic chemist. Enjoy yourself.
Dr. Lee Kum Tatt and his blog
I persuaded Dr. Lee Kum Tatt to put his ideas in this blog so that others may benefit from his experience , values and philosophy. Many still asked him why he blogs and for whom? Here are his comments.
Thursday, August 2, 2007
Some tips on investing in structured products
1. What are structured products?
These investments link your returns to stocks or bonds. It reduces both the high and low-end of potential returns. You receive the middle part.
2. What type of structured products are good for consumers?
If you must buy a structured product, your best bet is probably one (i) which pays a minimum return that is more than a money market fund and (ii) doesn't lock up your money for longer than you are comfortable with. (It is hard to find one of these.)
3. What type of structured products are bad for consumers?
Structured products with high costs and uncertain returns are bad for consumers.
Costs: For many structured products, the costs are not disclosed. Some structured deposits trade as unit trusts and these report an expense ratio. The expense ratio contains most of product's costs.
Returns: The products usually state a minimum and maximum return. If the minimum return is higher than the money market rate, it is acceptable as long as it doesn't lock up your money for longer than you wish.
4. What steps should the consumer take, before investing in a structured product?
Check out the (i) costs, (ii) minimum returns and (iii) lock-in period.
These investments link your returns to stocks or bonds. It reduces both the high and low-end of potential returns. You receive the middle part.
2. What type of structured products are good for consumers?
If you must buy a structured product, your best bet is probably one (i) which pays a minimum return that is more than a money market fund and (ii) doesn't lock up your money for longer than you are comfortable with. (It is hard to find one of these.)
3. What type of structured products are bad for consumers?
Structured products with high costs and uncertain returns are bad for consumers.
Costs: For many structured products, the costs are not disclosed. Some structured deposits trade as unit trusts and these report an expense ratio. The expense ratio contains most of product's costs.
Returns: The products usually state a minimum and maximum return. If the minimum return is higher than the money market rate, it is acceptable as long as it doesn't lock up your money for longer than you wish.
4. What steps should the consumer take, before investing in a structured product?
Check out the (i) costs, (ii) minimum returns and (iii) lock-in period.
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