Property prices have finally come down and this probably marks some signs of slowing down - not too good for those who bought or invested the properties earlier on (although I’d think that it’s probably be less heartaching for genuine buyers), but probably good news for people who are shopping around. Rental rates will probably be following suit, which is just about time since I would need to move out before the end of this year.

But hey, you know what? Bank interest rates have went up - which some how seems to me like 2 forces acting in equilibrium! Darn! do the banks know how to make full use of opportunities or what? They are really not giving the buyers any breathing space, are they? I hope the banks are not quoting “increase oil prices” as a reason for them to jack up their interest rates. =)

Anyway, with the uncertainty in the economy and a recession looming (although many will either flatly deny it or think that we are already in one), it’s probably only those with ready cash that will be able to make use of this opportunity. It’s no wonder that the rich get richer and the poor… well, just remains just as poor, if not poorer - that’s assuming that people are buying these properties as investments.

 GOOD news for homebuyers: The prices of some new developments are finally starting to come down.

At least two new projects have been tagged with prices below what they were expected to fetch just months ago.

This may be because developers are faced with no sign of improvement in the cooling property market, consultants say.

They may be choosing to move units by making their projects more affordable rather than continuing to wait out the gloomy sentiment.

One example is Dakota Residences in Dakota Crescent, a 99-year leasehold project by Ho Bee Investment and NTUC Choice Homes.

Sales of its 348 units will start next Saturday at an average of about $950 per sq ft (psf) - below the $1,000 psf to $1,100 psf that Ho Bee had previously targeted.

This means a 1,300 sq ft three-bedroom unit would cost about $1.24 million, down from as much as $1.43 million previously.

‘After the land cost and building cost, the break-even price is actually almost $900 psf,’ said a property agent, who asked not to be named.

The Straits Times understands that about 120 units will be released in the first phase, and prices may go up by at least 5 per cent for the remaining units, depending on demand.

For now, the two- and three-bedroom units that face away from Geylang River are said to cost $950 psf to $970 psf, while the bigger four-bedroom units facing the river will go for $1,000 psf.

City Developments’ (CDL) Shelford Suites in Shelford Road has also started previews for its 77 units at about $1,600 psf on average.

Market watchers said this was lower than expected, as two units were sold in March for $1,869 psf and $1,905 psf.

Shelford Suites’ launch had been delayed for months as CDL waited for sentiment to improve.

Article obtained from straitstimes.com on 12th June 2008

This was probably anticipated when the Malaysian government decided that they would cut subsidies, resulting in increased cost of operation for most businesses in Malaysia. Of course, the most logical thing for them to do is to pass the cost back to the consumers. In the case of Singapore, that’s quite a fair bit of things.

For a start, there’s an increase in egg and vegetable prices. I forsee more items being affected because Singapore basically imports every other thing (at least most other things) from Malaysia - fruits, vegetables, eggs (I thought we had our own chicken/egg farm?), chickens, pigs, water (thank goodness the water is piped in, but I’m sure they will link it back to increase the cost somehow), erm… what else did I miss?

So, while we are being hit by the increase in oil prices and inflation, our neighbours have no choice but to pass on the cost to us; and there’s nothing much we can do. Hmm… eat less eggs and vegetables?

SINGAPOREANS already battered by inflation faced another whammy this week.

The price of eggs and some vegetables has jumped at wet markets across the island, according to a Straits Times check.

This comes barely a week after Malaysia, Singapore’s biggest food supplier, trimmed domestic fuel subsidies.

The move has driven up transport costs for fresh food importers, who truck supplies like vegetable and poultry across the border.

Eggs from Malaysia now cost up to 10 per cent more, according to a survey of 14 stalls at three wet markets.

A carton of 10 large eggs from the Chinatown Complex, for example, now costs $1.80, up from $1.70 during the weekend.

Meanwhile, Malaysian transportation companies have informed importers, that they will charge up to 30 per cent more to haul leafy vegetables into Singapore.

Last Thursday, Malaysia cut back its fuel subsidies, which increased pump prices for petrol by 41 per cent and diesel by 63 per cent .

The increase has trickled down to wet markets here, which have already been forced to raise prices because of a supply crunch.

Mr Jimmy Kong, 35, who owns a vegetable stall in a wet market in Serangoon Gardens, said small-time sellers are the most vulnerable to price increases.

‘We are scared of prices going up. There is so much competition from supermarkets. They buy by the tonne, we buy by the box.’

Article obtained from straitstimes.com on 11th June 2008

Yes, a friend and myself were there when the protest took place. It was quite an eye opener considering that none of us have ever seen a real life demonstration - at least not in spanking clean Singapore. There were actually a few distinct groups of people - the elderly ladies, the *ahem* rainbow people (who forbid us to take photos), and there was this really big group of people seated right outside the Gwanghwamun station (photos in camera, but using other’s laptop, will post some pictures when I get my laptop running).

I am not sure how it will look like on TV, but it was a rather “peaceful” protest in that we didn’t see people carrying kerosene bottles and hurling them at the police. In fact, there was a depiction of a man on a cross with red paint splashed all over him. I wasn’t sure what that was meant to signify, but yes, it was rather noisy with all the shouting over the PA and loud traditional music. When the crowd crossed the street, they literally put traffic to a halt. There were some container trucks that we thought were put up by the protesters, but it turned out that it was the police who wanted to prevent the people from heading to the government offices.

There was a lot of screaming and shouting, which I thought meant “no beef!” and “down with the president!”, which turned out to be quite close. The people were indeed unhappy that the newly elected president has allowed the import of American beef, which they believe is laced with strains of prions that causes the mad cow disease. Before the demonstration started full scale, we decided to head off just in case things turn ugly. We passed by a lot of people from the press (ourselves included, pseudo-press. that is) and some others apparently from the armed forces - but looking very relaxed.

I wonder if the demonstrators needed to apply for a permit for it. For a rally of this scale, there’s enough people to fill up the entire Orchard Road starting from Orchard MRT station all the way to the Istana; and there’s no way that the Singapore government will ever approve of such a permit, althought I’d wonder if (1) there are enough people who are willing to protest, and (2) if there is enough space in all the detention centers *ahem* and prisons to put all these people under arrest. After all, this is Singapore - spanking clean.  

SEOUL - TENS of thousands of flag-waving South Koreans packed central Seoul on Tuesday, demanding the scrapping of an agreement to resume US beef imports and the resignation of new President Lee Myung Bak.

The entire cabinet earlier offered to quit to take responsibility for weeks of turmoil over the deal, which opponents say exposes Koreans to the risk of mad cow disease.

But demonstrators pressed on regardless with what they have billed as their largest protest to date.

Police erected greased barricades of shipping containers in the heart of the capital to block access to government buildings and the presidential palace.

They estimated crowd numbers in Seoul at less than 30,000 just before 7pm (1000 GMT), when the rally was officially to begin, but more and more groups were still arriving.

Among them were about 50 mothers, some pushing baby strollers and chanting ‘Down with Lee Myung Bak.’ ‘I am not interested in politics but in the health of our family,’ said Ms Lee Sun Hee, a 32 year-old housewife.

Police said up to 200,000 people nationwide, including 150,000 in Seoul, were expected to take part in Tuesday’s candlelit protests. Some 37,000 riot police were being mobilised, 20,000 of them in Seoul.

‘Today’s protests are to pass judgement on the Lee Myung Bak government which keeps ignoring people’s demands despite a month of candlelit protests,’ said activist spokesman Park Won-Suk, claiming one million people would show up nationwide.

The US and South Korean governments say the risk of the human form of mad cow disease is virtually non-existent but they have failed to persuade thousands of Korean consumers.

Lee, a conservative former business executive elected last December by a record margin, admitted as such.

‘We will be more humble in listening to the people and serve them with all our might,’ the president, whose approval ratings have tumbled below 20 per cent, promised Tuesday.

Prime Minister Han Seung Soo and the cabinet offered their resignations to Lee ahead of the mass protest.

A presidential spokesman said no decision had been made yet about ministerial changes and the current cabinet would stay in office for the time being.

Yonhap news agency said Lee is expected to replace four or five ministers as he grapples with the backlash over his April agreement to resume US beef imports, which were halted in 2003 over mad cow fears.

Mr Lee is seeking to modify the beef deal but says he cannot renegotiate it, as protesters demand, since this would jeopardise US approval of a separate free trade pact.

US legislators have warned they will not ratify the free trade agreement unless Seoul first opens its beef market.

The White House said on Tuesday that the offer from South Korea’s cabinet to quit was an ‘internal matter’ and that it still hoped for a beef deal.

The beef protesters have been joined by left-leaning opponents of the broader trade deal and by critics of Mr Lee’s market-friendly economic reform agenda.

The radical Korean Confederation of Trade Unions said about 100,000 of its members would take part in Tuesday’s rally, before voting on whether to launch an indefinite walkout next week.

Mr Lee won power with pledges to revitalise the economy but has been grappling with the global credit crunch and soaring oil and raw material prices.

‘Under the volcano of mass protests lies huge magma - public anger over economic instability and Lee’s shaky leadership,’ said Choi Jin of the Institute of Presidential Leadership.

The beef deal was struck on the eve of Lee’s first summit with US President George W. Bush in April. Opponents say the government failed to secure enough safeguards against the supposed dangers of mad cow disease.

Seoul has sought to ease anger by delaying the resumption of imports and calling on Washington not to export beef from cattle more than 30 months old, seen as more vulnerable to possible infection. — AFP

Article obtained from straitstimes.com on 11th June 2008

At first, it was the IT industry, then came the life science industry, but in the end, there was so much supply that people had problems finding jobs after graduating. For the IT sector, many companies were bringing programmers from India and China, who usually command a lower wage than most Singaporeans for the same job.  I remembered that one manager once told me that with all these influx, it’s better for Singaporeans to learn how to “manage” them then to be fighting for the same job with them. Then again, how many can end up successfully as managers?

Then came the life science industry with much brouhaha, until Philip Yeo from A*Star back then said that all life science graduates will just end up being test-tube washers. True enough, most life science graduates that I know end up being lab assistants, sales people or doing other jobs that do not require the knowledge and skills of a life science student - with the most common job being a management trainee or a financial advisor; partly because there seemed to be better financial prospects. However, it is probably a real problem that unless life science graduates continue with their postgraduate studies, it may be a little challenging to do research on their own.

The news today triggered a thought in me - should we be looking for jobs with seemingly better prospects, at the risk of facing an oversupply when we graduate? Or should we just “go with our instincts” and do something that we really would love to - or at least have some liking. I remembered that when Singapore was going through a recession not too long ago, it was mentioned in the news that Singaporeans were too picky in their jobs and they should not reject jobs that require them to travel from one end of Singapore to another end. Assuming that a person stays in Punggol or somewhere in the East and takes public transport to, say, Pioneer North Road - that takes about 2 hours in a single direction; which means 4 hours are spent to and fro. On top of that, they are expected to spend time with their family (and kids) and be able to have a balanced lifestyle.

I used to spend 4 hours a day travelling on the road. I am not sure if I want to continue wasting 4 hours of my life in my work because that’s really a lot of time. Some might argue that we can spend time “resting” on the trains or bus, or perhaps do some reading up on stuffs. However, I am not sure if I’d still have that kind of energy after working for one whole day. Of course, I’d never know, at least not now; however, life does seem meaningless if it’s spent working, travelling and being really tired out when I reach home.

JASMINE Lingam is your average 22-year-old female polytechnic graduate - except that she aspires to be an aircraft maintenance engineer in an industry dominated by the guys.

Not just because she likes planes but because she knows the job comes with a passport to virtually anywhere in the world.

A booming aerospace industry - the business of repairing and maintaining planes and parts - means technicians and engineers often have jobs waiting for them, even before they are certified, said Mr Charles Chong, president of the Association of Aerospace Industries Singapore.

Still, it is an uphill struggle to convince school leavers to come on board, he said.

Many find the work unglamourous and are not thrilled about earning less pay - about $1,000 - during training which can take several months or even years.

He told The Straits Times at an industry forum on Tuesday: ‘Young people today prefer banking and finance….The biggest hurdle we face is getting them into our industry.’

The aerospace industry which now employs close to 19,000 people needs an estimated 1,500 new faces every year - 150 short of the number being churned out by training institutions.

Foreigners make up for the shortfall.

To lure more people in, the association works closely with the Government to raise awareness of the prospects that come with an aerospace career, and to raise skills levels so that job-seekers are assured of an attractive career path.

For example, the Singapore Workforce Development Agency (WDA) has extended its nationally recognised training programme, called Workforce Skills Qualifications (WSQ), to the aerospace industry.

Leading companies like Singapore Technologies (ST) Aerospace and Singapore Aero Engine Services (Saesl) support and recognise the programme by putting staff through the training.

The first batch of 82 graduates, including Miss Lingam who is a Saesl trainee technician, has completed one module of the programme.

Apart from skills upgrading, the association also has a recently-launched online portal www.AeroCareer.SG to match employers with job-seekers.

Since March, more than 400 job applications have been facilitated.

Article obtained from straitstimes.com on 10th June 2008

Yes. After a really long wait, and much anticipation (of a ‘legal’ iphone) and anti-anticipation (of perhaps being a non 3G iphone), we finally have the good news that 3G iPhone will be available from SingTel later this year! Woohoo! Time to start saving, if your hands are itching for the 3G iPhone. Alternatively, it means one less gadget from PC show 2008 (12-15 Jun) that is coming to Suntec this week. =(

FANS of the Apple iPhone will be able to get their hands on the new, faster version of the device within the next few months, and likely at a more attractive price than the original too.

This will be good news for those hankering for the iconic device, the original version of which is still not available here a year after its launch.

Singapore Telecommunications (SingTel) on Tuesday announced that it will be bringing the speedier and ‘much anticipated iPhone 3G to Singapore later this year.’

In a media statement, SingTel executive vice president Quek Peck Leng said that the mobile operator was ‘pleased … to be the first mobile operator in Singapore to launch’ the device.’

Apple chief operating officer Tim Cook said the company was ‘excited to be working with SingTel, the largest multi-market mobile operator in the Asia Pacific, to bring iPhone 3G’ to Singapore. No official launch date has been set.

The iPhone 3G (third generation), which was unveiled in San Francisco on Monday night by Apple chief executive officer Steve Jobs, comes one year after it launched the original iPhone to mixed reviews.

Fans enthused about its sleek look and brand cache, while critics savaged the device for its poor messaging capabilities and lack of 3G or third generation wireless access, key selling points for markets like Singapore.

It has nonetheless sold over five million worldwide, halfway to Mr Job’s stated target of selling 10 million iPhones in 18 months.

The new 3G or third-generation iPhone addresses many of these complaints. Just last month, SingTel announced that it will be selling the original iPhone later this year.

Article obtained from straitstimes.com on 10th Jun 2008

A strong aftershock hit China’s quake lake in southwest Sichuan - as predicted earlier on by authorities. There’s no known casualties and the scale of the quake was also not known yet. It’s rather sad that as China prepares for the Beijing Olympics that tragedy had to strike.

Here in Taiwan, no shockwaves were felt, but then again, quakes are part of the everyday life of the average Taiwanese. In fact, some quakes were felt just a week ago and that it happens at such regular intervals that most people got used to it.

BEIJING - A STRONG aftershock was felt at China’s ‘quake lake’ in southwest Sichuan on Monday, state media reported.

The aftershock struck the swollen Tangjiashan quake lake just after 11am Singapore time on Monday, Xinhua news agency reported, quoting one of its reporters at the scene.

Xinhua reported that the magnitude of the aftershock was not immediately known, and its impact on the dam was under surveillance.

Chinese soldiers used anti-tank weapons to blast away rocks and mud holding back waters in an earthquake-formed lake that threatens more than 1 million people living downstream.

Television and official Web sites showed People’s Liberation Army troops firing 82mm recoilless guns at debris on Sunday.

Troops dislodged enough debris to speed the drainage of waters in Tangjiashan lake, although the level continued to rise with the inflow from the blocked river behind the dam, the official Xinhua News Agency reported.

Another 120 troops were sent to continue the operations on Monday, Xinhua said.

Early on Monday, the water level had reached more than 2m above a spillway carved into the dam last week to divert water and release pressure on the unstable dam wall, Xinhua said.

Authorities were on alert both for increased rainfall and new aftershocks that could weaken the dam or send more debris plunging into the lake.

Prof David Petley, a geography professor at the University of Durham in northeast England, warned the situation at the lake appeared to be reaching crisis levels.

‘The teams on the dam are fighting a desperate battle now,’ Prof Petley said. ‘The outcome is very uncertain.’

Rising water levels indicate the outflow is not fast enough, he said. At the same time, news photos show worrisome signs, he said, pointing to indications that the top of the dam was holding, instead of eroding slowly as it should, while the channel further down was eroding too quickly.

That potentially could place increased pressure on the dam by suddenly sucking down large volumes of water, overwhelming the barrier, Prof Petley said.

‘I am increasingly concerned about the state of play as the level of the lake continues to rise and the channel at the crest of the dam does not appear to be eroding,’ he said.

Other threats
New landslides sparked by a magnitude 5 aftershock on Sunday underscored the threat of flooding.

More than 250,000 people downstream have been evacuated in recent weeks, adding to the turmoil created by last month’s massive earthquake in China’s Sichuan province. Many were living in improvised camps on surrounding hillsides, surviving on instant noodles and suffering from heat, mosquitoes, and a lack of water for bathing.

The Tangjiashan lake was formed when rubble from a massive landslide set off by the deadly May 12 earthquake blocked the flow of the Tongkou River, also known as the Jianjiang.

Wooden houses, boulders and other debris have also been blasted to speed the flow of water into the spillway. Other troops have been deepening the channel and digging on a second spillway.

Managing the Tangjiashan lake has become a priority for a government working to head off another catastrophe even as it cares for millions left homeless after the 7.9 magnitude quake in Sichuan province. More than 1.3 million people live downriver from Tangjiashan.

The death toll from the quake climbed on Sunday to 69,136, with 17,686 people still missing.

The Tangjiashan lake is the largest of more than 30 created by last month’s quake. Government experts quoted by state media have played down the threat of imminent flooding, though a variety of factors could set off a dam collapse: rain, aftershocks, landslides and increased leakage from the barrier.– AP, AFP

Article obtained from straitstimes.com on 9th June 2008

I did not have access today’s paper in print, but a glance at the online version seemed to send a very (in fact, very, very, very… you get what I mean) strong message to all commuters - take public transport else you’d be paying a heavy premium to move around. The main factor in this is largely due to the tremendous hike in fuel prices, which made it less affordable to maintain a car. Although the price of COEs have taken a dip, the constant increase in fuel prices have kept potential buyers on the hold.

With pump prices heading north, motorists here are switching to cheaper alternatives.

Some have given up their cars and moved to public transport. Others have downgraded to smaller cars or two-wheelers. A growing number have opted for hybrid-engine cars.

There’s even a six-month waiting time for those who are keen to kit their cars out to run on compressed natural gas (CNG) because of a sudden surge in demand, according to motor workshops.

There were 248 CNG cars on the roads last year, but this has more than doubled to 538 in April this year.

Hybrid cars, or those that switch between petrol and electricity, also shot up in the same period, going by the Land Transport Authority’s numbers. Another 289 have joined their ranks, bringing the total to 1,346.

Another popular ‘green’ choice is public transport. Singapore’s total bus and train ridership hit a record 4.78 million rides a day in the first three months of this year.

The number of bids for certificates of entitlement (COEs) every month has also fallen since the beginning of this year, one more indicator that consumers are staying away from buying new cars.

COE bids for cars up to 1,600cc, for instance, fell from 3,005 bids in February to 2,500 this month.

‘People are very cautious about buying big-ticket items now, with oil and food prices going up and property prices and shares moving down. They’re adopting a wait-and-see approach,’ said Tan Chong Motors’ marketing director A.C. Neo.

If they do buy, says the Nissan distributor, small is in.

Borneo Motors, which sells Toyota cars, has also been selling more of its smaller capacity cars than its larger ones, said customer relations general manager Angeline Tan.

Another popular choice now is off-peak cars with the distinctive red plates. They can be driven from 7pm to 7am on weekdays, after 3pm on Saturdays and all day on Sundays and public holidays.

There are about 34,000 of them on the road now, compared to 2,644 just five years ago.

Mr Henry Ang, manager of car dealership Koh Brothers Automobile, said that he has seen a 20 per cent increase in the number of motorists who have switched from regular cars to off-peak cars to save money.

Petrol prices last went up two weeks ago, the 12th consecutive hike since last July. This brings pump prices here to between $2.153 and $2.386.

If you drive a 1,600cc car, that means you pay about $320 a month for petrol, going by the average distance covered. This is $70 more than the $250 you would have paid this time last year.

That bill is likely to go up as analysts expect petrol prices to hit $3 a litre here if oil prices reach US$200 (S$273) a barrel.

But energy consultant Ong Eng Tong of Mabanaft International said that he expects pump prices to end the year closer to $2.50 instead, which is about US$150 per barrel.

‘Drivers will pay maybe $50 to $100 extra a month and this is discretionary income,’ he said.

dawntan@sph.com.sg

Of course, besides encouraging people to take public transport, the papers also highlighted the probability of switching over to hybrid cars. These cars primarily run on 2 sources of energy - petrol and either CNG or electricity. While CNG may be cheaper (correct me if I am wrong), the pittance number of CNG refueling stations doesn’t make it an attractive option. I’m not even sure on the options of running on electricity. =P

To Mr Bernard Chew, ‘hybrid’ does not mean an orchid but his Toyota Prius, which has two engines: one petrol-driven, the other electric.

Mr Chew, 42, chief information officer at NTUC FairPrice, had predicted petrol prices would keep going up.

He put his money where his mouth is, and bought the fuel-sipping Japanese hybrid car for $85,000 in January last year.

He is glad too that his ‘green’ Prius is less pollutive. But the big plus for him is the fuel-saving factor.

A hybrid car is able to get more mileage because it uses its electric motor in stop-go traffic, and the petrol engine kicks in only when the car is cruising.

‘My Prius gets about 25km per litre,’ Mr Chew said.

A non-hybrid saloon like the Toyota Corolla averages around 13km per litre while a Honda Civic does about 11km per litre. The Toyota Prius goes for at least 17km to more than 20km per litre.

Because he is often on the road - about 2,000km each month - Mr Chew finds himself spending less now on fuel: about $160 each month.

His previous car, a Toyota Wish, cost him about $400 in monthly fuel costs.

Mr Chew now feels happier to use his car socially, as when he takes his family out for dinner.

He agreed that the upfront payment of a hybrid is higher - about $8,000 to $10,000 more than a similar-sized saloon car. But he said: ‘If you plan to drive the car for a long time, this upfront sum will pay for itself.’

Indeed, hybrid cars are selling well here.

Borneo Motors’ general manager for customer relations, Ms Angeline Tan, said there has been a 50 per cent increase in hybrid sales since fuel prices rose in July last year.

Its hybrids include the Toyota Prius, Lexus RX400 and Lexus LS600, the last of which has sold out.

It sold about 150 of its hybrid models last year. There is a waiting time of up till November for its Prius due to a shortage of production and increase in global demand.

Kah Motor, too, says its Honda hybrid sales have spiked this year. Its marketing manager, Mr Vincent Ng, said there has been a 176 per cent increase in hybrid sales in the first five months of this year over the same period last year.

A total of 283 Honda Civic hybrid models have been registered this year.

Kah Motor will introduce at least two more hybrid models in the next two years.

Another cool option is of course to either walk or cycle to work - a luxury that is only bestowed upon those who work or study very near to their destinations - unless of course the entire journey is air-conditioned (?!) or it’s a breezy journey. I’m not sure how classmates or colleagues will react to a drenched classmate or worker coming in, smelling like he just did a marathon dash. Of course, it doesn’t have to be like this, but for someone (like me) who perspires a lot, a 5 minute walk (to the nearest bus stop or train station) is probably all I can afford without being given a "free bath".

Mr David Tan, 33, gave up his car to cycle to work.

‘I decided to cycle because I wanted to save on fuel and Electronic Road Pricing (ERP) costs,’ he said.

But the car hasn’t been sold. His wife, whose workplace is nearer their home, drives it now - chalking up about $200 a month on fuel.

It would be double that amount if Mr Tan, a regional financial analyst, drove the car instead.

The owner of a Strida foldable bicycle which costs $850, Mr Tan has been cycling to his workplace in Millenia Walk from his home in Upper Boon Keng since December 2006.

He enjoys the 20-minute ride. ‘It is more convenient, and there is a breeze from the river in the morning, so I feel refreshed,’ he said.

Mr Tan does not even need to shower at his office as he does not perspire much.

He admits, though, that bad weather can be a bother for a cyclist.

Also, he chafes at the bad driving habits shown by motorists towards cyclists. ‘Cars cut in front of me without signalling on major roads like Kallang Road,’ he said.

However, the optimist in him feels that the advantages of cycling outweigh the disadvantages.

‘I can save money on fuel and other things like parking charges,’ he said.

Mr Tan saves about $460 a month by taking to his two-wheeler.

‘Driving costs, which include fuel, have gone up since 2006, so I would have to pay even more to drive now,’ he said.

Ms Vivian Yuan, a marketing manager and owner of a foldable bicycle company, agrees with Mr Tan: ‘There has been an increase in inquiries and bike sales because people want to save on petrol, ERP and parking costs.

‘At the same time, they buy bikes for leisure and health purposes as well,’ she added.

The last option (given in the papers, at least) is car-sharing. This is a good option if you do not need a car every day (read: periodically) and if there’s a convenient pick-up or drop-off point for you. It will probably not make sense if you have to travel 30 to 45 minutes to the pick-up/drop-off location unless you really need it - then perhaps distance could be a deterring factor if you really do not need the car. There’s, of course, always the option of public transport - and according to, erm, some minister, taxies are not public transport (line picked up when some minister was asked about deregulating taxi fares).

After getting his driving licence last year, civil servant Jasni Hirman, 47, was looking forward to buying a car to ferry his family of five around.

However, in January this year, he found petrol prices steadily climbing. After re-thinking the car maintenance costs and Electronic Road Pricing fees, he opted for car-sharing instead.

He joined Whizzcar, a car-sharing scheme run by Popular Rent A Car, last month.

Car-sharing schemes allow users to book cars for short periods, usually with access to the vehicles at different locations across the island.

The pioneer of such schemes here was NTUC Income Car Co-op. Piloted in 1997, it had 36 members sharing four cars then. It now has 4,300 members, who share 165 cars in 67 locations.

The scheme took off and soon there were four major players: NTUC Income Car Co-op, Honda Intelligent Community Vehicle System, CitySpeed - which was linked to ComfortDelGro - and Whizzcar.

But now, only NTUC Income and Whizzcar remain.

The general manager for Whizzcar, Mr Ho Kok Kee, said that he had seen a membership increase of 5 to 10 per cent in the past few months, as well as a 15 per cent rise in revenue in the beginning of the year.

Whizzcar’s 85 cars in 33 locations serve over 2,000 members.

About three times a month, Mr Jasni picks up a Toyota Vios from a location in Admiralty, near his Yishun house.

He uses it from about 9am to 7pm, driving his family to weddings, to pick groceries up and for outings at the beach.

He pays between $50 and $60 each time inclusive of petrol, on top of the $10 monthly membership fee and a $60 one-time entrance fee.

‘This is a convenient way for me to be able to drive without expensive rental rates,’ Mr Jasni said.

Lastly, if the last article is anything to go by, I smell of a transport fare hike. =) This, will bring with it another set of social problems that we’d have to tackle in the not-too-distant time. Speaking of public transport, did you know that the MRT services in Taipei is giving their commuters a 75% discount to make use of the EasyCard (our EZLink equivalent) for public transport? =) It’s something we won’t see here, for sure.

Rocketing oil prices have squeezed much of the life out of smaller transport operators, with many now battling to stay afloat.

Much of the pain for these businesses - from car rental set-ups to bus operators and freight firms - boils down to the fact that the huge oil price hikes hit so fast, they had no time to prepare themselves or hedge their costs.

Some firms have seen operating costs rise anywhere from 10 to 30 per cent this year, cutting profit margins.

‘For this period, we are not talking about profit; we are talking about staying afloat,’ said Mr Louis Loh, sales manager of Loh Ghim Chong Transport, a 27-year-old firm with a fleet of 20 air-conditioned buses.

‘Most of our long-term contracts bind us for at least 12 months. Now, we are very cautious about our pricing when renewing contracts,’ he said.

Many companies first began to feel the heat after crude oil shot to US$100 (S$136) a barrel in early January this year, but prices have leapt by more than 30 per cent since then.

The pump price of diesel, which is used mainly by taxis, buses and light goods vehicles, is now about $1.80 a litre.

The diesel bill for one bus has almost doubled in two years, from $1,600 a month in 2006 to $3,000 now, Mr Loh said.

Mr V.S. Kumar, managing director of Network Express Courier Services, has seen fuel costs shoot up by 30 per cent in three months.

But the seemingly obvious solution - passing the costs on to customers - is resisted by many operators as they know that they have to stay competitive in an industry flooded with many players.

‘If we try to raise the cost of our services, our clients will simply run away to another company,’ said Ms Janice Yeong, operations manager of Berlington Services, a freight forwarding firm.

Many prefer to tackle the problem from a different angle - cutting costs. One way is to streamline operations and reduce fuel wastage by proper trip planning.

‘We have informed staff to consolidate deliveries,’ said Mr Kumar. ‘So instead of delivering just two items to one place, I now wait for five items.’

Even some of Singapore’s biggest companies - those with the ability to hedge against rising fuel costs - are not immune to sky-high prices.

Singapore Airlines (SIA), taxi operator ComfortDelGro and shipping company Neptune Orient Lines are some blue-chip businesses that have seen dents in profits and downgrades on their stocks.

Energy costs at ComfortDelGro, which operates Singapore’s biggest taxi fleet, jumped 37.9 per cent in the first quarter compared with last year, sending profits down by 9.4 per cent to $50.2 million.

But commuters need not fear an increase in taxi and train fares just yet, as these are regulated by the Public Transport Council and capped by a fare-adjustment formula.

SIA estimates that it will incur an additional fuel cost of US$39 million for every US$1-a-barrel increase in jet fuel price, excluding any hedging of fuel purchases, said its spokesman.

Even with cost cutting and greater efficiency, the road ahead for transport firms looks bumpy, with analysts tipping that oil prices are likely to stay high given sustained global demand, tight supply and higher production costs.

That could spell high pump prices - and prolonged pain for the transport sector, the ‘most obvious and directly impacted’, said Action Economics economist David Cohen.

‘People will be cutting back on rides in reaction to higher prices. It will be a double whammy for them,’ he added.

Additional reporting by Gabriel Yue and Alvin Lim

Articles obtained from straitstimes.com on 8th June 2008

Well, speculation that budget airlines will eventually rule over mainstream airlines is probably coming to an end soon, if the sentiments of passengers who were hit by the revised luggage rule were anything to go by. Passengers going by Tiger Airways will only be allowed to have a 7kg carry-in hand luggage and speculation will have to be made on the weight of the check-in luggage. That means, passengers not only have to weigh their luggage before flying, they have to estimate how much it will weight when they return.

This is usually not a problem when they are on short, non-holiday trips which does not require much shopping, especially souvenirs-shopping for themselves and friends. However, this seem to be a good and valid reason in the future:

Friend: Eh… how was holiday? Got buy anything back or not? You can’t be that ngiao right?

You: No lah… what ngiao? The airline now charge me for bringing things back, ok? Can lah, I bring souvenirs back for you, you pay for the luggage lah.

See? Problem solved. Or course, the other issue that some other forummers in straitstimes.com have with this rule is on the topic of erm… mass-challenged passengers. One forummer commented that:

It’s entirely logical to charge by the weight but it should logically be the combined weight of passenger and luggage. Heavier passengers and those with heavier luggage should pay more.

Posted by: Baikinman at Sat Jun 07 10:44:47 SGT 2008

While another said that:

When airlines start resorting to these practices, as an investor, I know that the sharks are circling. The business is going down. Though the fuel cost is rising, the airlines have to be honest and fair. Charging a person according to weight also is fair. Charge by passenger weight category. In bands of 20kg which the passenser declare. If exceed at check in time, passenger pay weight penalty surcharge like lugguage. The difference between heavy and light passenger can be over 50kgs.
mkhheng

Posted by: mkhheng at Sat Jun 07 14:17:41 SGT 2008

I am not sure how many people actually agree with him, or at least snigger along, but there are people who are really challenged by their weight and there’s very little they can do about it. I am one good example. Of course, I can exercise, take less carbo, and all, but at the end of the day, I might just have a higher propensity to put on more weight and it’s just probably genetics.

However, one thing I am beginning to take note of is that budget airlines are no longer that "budget" any more - given the sky high taxes that passengers have to pay. I am not sure how much a budget ticket inclusive of tax costs on a budget airline, but one such airline (and actually, a few) can fly you over to Bangkok for less than S$300, tax included. I’m not sure if that’s a lot, but it’s a mainstream airline and I don’t have to put up with walking on the tarmac under the hot sun and not having any trolleys.

Budget airlines and The Budget Terminal is beginning to signal to be that they are running on a budget and that passengers will have to pay more for them to sustain their business, which is really the direct opposite of what’s supposed to happen. I still think getting restricted economy tickets on a mainstream airline is still the way to go.

PEEVED passengers are speaking out against a new decision by Tiger Airways to charge for checked luggage.

Some travellers are calling the new ruling, which came into effect on May 29, unreasonable and wondering how they will be able to keep to the budget carrier’s limit of 7kg for hand baggage.

‘If it is called a budget airline, it (Tiger) should stick to being budget,’ said housewife Kim Chea, 47, before boarding a flight from Changi Airport to Perth, Australia, on Thursday. ‘Otherwise, there is no point in us picking it over the major airlines.’

Tiger used to give its customers a 15kg complimentary baggage allowance, but has cut back to reduce fuel and ground handling costs, the airline said.

Now, it costs between $5 and $40 to check in luggage if you notify the airline at least 72 hours before take-off.

If not, the charges are higher - $20 for the first 15kg and $12 per kg after that.

One man, who was flying from Changi, said those provisions will result in some guesswork for passengers.

‘It is not fair to penalise us if we predict wrongly the weight of our supposed luggage,’ said Mr Shiong, who wanted to be known only by his family name.

‘It will be very restrictive. On holidays, I will not be able to buy more souvenirs for friends.’

Others also said that keeping to the 7kg hand luggage limit is going to be a tall order.

Mrs Chea said: ‘If you go to Perth during this time, when it is colder, your luggage will definitely be heavier than 7kg as you have to pack winter clothes as well.’

Mr Zhang Gao Shi, 69, a businessman who was travelling to Darwin, Australia, said he had mixed feelings about the charge.

‘This is an open market so if we do not agree with this policy, we can always choose other airlines.’

Then again, he said, what’s to stop the airlines from tacking on more fees and surcharges? ‘If prices keep going up, budget will not be budget any more.’

When contacted by The Straits Times, a Tiger Airways spokesman said excess baggage raises fuel and handling costs.

She said: ‘By separating the cost components of air travel, passengers pay for only what they use, instead of having to subsidise other travellers.’

Encouraging passengers to carry only what they need lowers operating costs ‘which in turn translates to cost savings for customers’, she added.

Airlines around the world are grappling with rising jet fuel prices which have doubled in the last one year. They are pulling out all the stops to cushion the impact - cutting routes and capacity, grounding aircraft, holding off on new planes and, in some cases, axing jobs.

Apart from Tiger, some other carriers in the United States and Europe have also revised their baggage policies.

Other airlines that serve Singapore said they have no immediate plans to follow suit. The list includes Singapore Airlines, Qantas, British Airways, Malaysia Airlines, Qatar Airways and Etihad Airways.

karam@sph.com.sg

Article obtained from straitstimes.com on 7th June 2008

Of course, the Singapore government apparently has no control over fuel prices (well, some argue that the government does, if they intervene - but that’s of course, may result in anti-competitiveness) and this is not about our fuel prices vs. theirs because there’s definitely no fight. However, the Malaysia government rose the prices of fuel by as much as 41 percent overnight, resulting in much protests from "businesses, the opposition and ordinary people".

The solution for all these people is of course to pass the cost back to the consumers. After all, isn’t the industry all about making money (from the consumers)? It’s simply economics - who would want to make a loss in a business?

So, how has the Malaysian government shown that the Singapore government is… wise? I am sure many of us remember the big brouhaha when the Public Transport Council (PTC) raised fares by a few tens of cents some time back (actually, in the minds of most Singaporeans, it’s quite long ago) and the PTC/LTA/Government decided that the best solution is to revise the fares every year, short of committing on raising the fares every year regardless of the economy, or if the transport companies are really making a loss.

This, obviously didn’t go down very well with a lot of Singaporeans, but I have to admit that there’s gradual improvement in the buses and MRT trains. However, I smell an even bigger hike looming now that everyone’s apparently happy with the service. There’s no free lunch in Singapore. I should know that better.

KUALA LUMPUR - MALAYSIA’S overnight increases in petrol and diesel prices yesterday triggered widespread criticism by businesses, the opposition and ordinary people.

They called for a review of the steep hikes - 41 per cent for petrol and 63 per cent for diesel - announced on Wednesday and implemented yesterday.

The Associated Chinese Chambers of Commerce and Industry of Malaysia said the increase was simply too much, too soon for many manufacturers, and wished the government had raised prices gradually.

Malaysia’s new fuel prices are still among the lowest in Asia, but the increases sparked immediate talk of a trickle-down effect on goods and services.

Among the first to warn that they may have to charge more were Cameron Highlands vegetable farmers who send their produce by lorry to other parts of the country and Singapore.

Lorry companies transporting farm produce said they will have to raise rates by about 35 per cent.

Bus operators moaned that they will be hard hit, but the government responded swiftly, reminding public transport operators that they are unaffected by the price hikes.

Entrepreneurial and Cooperatives Development Minister Noh Omar said public transport vehicles, including taxis, will get discount cards to buy diesel at RM1.43 per litre, instead of the new price of RM2.58.

‘There is absolutely no reason for public transport operators to increase their fares,’ he told reporters.

The fuel price hike is expected to push inflation to a 10-year high of 4.2 per cent this year, central bank chief Zeti Akhtar Aziz said yesterday. It was just 2 per cent last year.

Stocks tumbled 2.4 per cent yesterday while the ringgit sank. Government bonds plunged on expectations that the central bank would raise interest rates to curb inflation, although the bank insisted there was no need to do so yet.

But some institutions said inflation could go up as much as 8 per cent as electricity tariffs are also going up sharply.

Consumer groups yesterday urged people to spend wisely.

The Malaysian Muslim Consumers Association encouraged people to be thrifty, but the Consumer Association of Penang said the government should lead by example and cut down on expenses and waste.

There was also some support for the government’s tough move to reduce subsidies and raise fuel prices.

‘It’s a short-term pain, but a long-term gain, in terms of better economic stability and reducing imbalances,’ said economist Yeah Kim Leng.

‘No doubt the 40 per cent increase is the biggest jump in history…but if it is properly channelled for development projects and for the improvement of public transportation, the public will be able to support it,’ he said.

hazlinh@sph.com.sg

Article obtained from straitstimes.com on 6th June 2008

Yes, there is another change again. The postponed petrol ban on Singaporean within 50km from its borders is called off. This is party due to the repercussions on the businesses in Johor, and the strong opposition voices from Johor businesses. So, with the ban cancelled, Singaporeans will be unlikely to cut down on trips to Malaysia. However, with this ban cancelled, all Malaysians have to suffer together. Petrol price, effective from today is raise by 40% to RM2.70 per litre for petrol and RM2.58 per litre for diesel. There will be no difference in petrol price to local or foreigner. Did I smell protest?

SINGAPORE vehicles can continue topping up on petrol in Johor, the Malaysian government said yesterday, ending days of uncertainty over whether it would implement a ban within 50km of the border.

The news came with the announcement of a 40 per cent hike in petrol prices from today.

Analysts say the move is a high-stakes gamble by Premier Abdullah Ahmad Badawi, who is fighting for his political survival.

Article obtained from straitstimes.com on 5th June 2008