Wednesday, 14 August 2013

Reply to the heart truths : NDP Rally 2013: Will The Government Do More For The People?

Lets look at this article by Roy Ngerng

he starts off by

"Which is why I am uncomfortable that the very first solution that the government could come out with was to ask younger Singaporeans to cross-subsidise the premiums of older Singaporeans."

So if he don't think that is the solution? What is it?

"The Singapore government also spends the lowest proportion on the total health expenditure, as compared to other developed countries (Chart 5)."

If Singapore's healthcare is bad, why is it perpetually ranked top 10 in the world?

Then he starts listing about our SWFs, obviously hinting at using our reserves.

"Do you know that the GIC and the Temasek Holdings, which our CPF is invested in, is earning 6.5% (Chart 8) and 16% (Chart 9) respectively?"

So he wants TH and GIC to give CPF more returns, but CPF has been giving up to 5%, just 1.5% below TH's earnings? And howabout other costs like administrative costs? So their real return is 1.5%, not alot. Howabout during down years like 2008-2009 and other financial crisis where alternative media has said that they lost "alot of money"?

Let me state that no risk-free instrument gives you 2.5-5% today. Today you'll be laughing if you got anything for more than 1%.

He ends off with

For a fair comparison on a country which has a similar GDP per capita, Norway spends 84% of the total expenditure on healthcare. So, if the Singapore government increases their expenditure to 40% or 45%, will you even consider this to be a significant move for Singaporeans?
So why didn't he say for fair comparison, their personal income tax rates area almost 50%? and 20% (which our cap) is easily hit by all strata of society. In Singapore, 60% do not pay direct taxes, and 40% get more than they pay.

for a fair comparison, why didnt he state that most of Norway's GDP is from oil, and even more from oil and minerals. For a fair comparison, why didn't he state that 1/3 of Norway's income come from oil? For a fair comparison, why didn't he state that even with that, their healthcare is unsustainable and there are talks to cut healthcare?

Why didn't Roy also mention that Norway's healthcare is often criticized

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