A bear and a rabbit took a poo in the forest one day and the bear asked the rabbit:
Bear: Do you have a problem with poo sticking on your fur?
Rabbit: No, why?
Before the rabbit knew it, the bear picked up the rabbit and begin cleaning the poo of his fur.
Alice came up with another joke with the bear and the rabbit:
Bear: Do you know how similar we are?
Rabbit: No?
Finally, Singapore as slipped into a technical recession. What this means is that the output (export) of Singapore had been declining in the last 2 quarters. At the same time, inflation in Singapore has reached a 26 year peak, where consumer prices will rise between 6 to 7 per cent this year. So how does a recession affect you?
Well, from a layman’s perspective, less outgoing goods mean that more goods are being stuck in Singapore. More goods being stuck for too long means that the companies will try to reduce the amount of output, which may lead to the layoff of staff that they do not need. Laying off of staff means that employment rate goes down and the number of jobless people goes up. This in turn affects the spending power of people affected, i.e. people will spend less. People spending less means that there will be lesser business for companies out there, which means they will be struggling to keep afloat and will hence lay off more people to survive. Eventually, everyone gets laid laid off and all businesses will close because no one is buying anything.
Erm, except essentials, of course.
So, how does a recession lead to an inflation? Well, the cost of everything starts going up in order to cope with the recession and hence people will have to pay more to get what they want. Eventually people will stop buying things (especially when they start being laid off) and if this happens on a wide scale, deflation may happen. This is a time when people who are desperate for cash will start selling their stuffs at a low price in order to get some cash to survive. While it is unlikely that essentials or goods will ever go into a deflation, things like used cars and property may.
There are of course, some businesses that will still survive and that’s in the area of needs. Education and food are just some of them. So, even in a recession, all’s not gone yet – especially if you have sufficient spending power. This may be a good time for you to start a business especially when it does not require extensive purchase of goods.
Judging from the sentiments of what’s happening recently, Singaporeans don’t seem to be feeling the recession yet – especially when we just hit a record high of the number of people signing up for travel packages and the turnout at the recent F1 races. Perhaps we will know the true picture towards the end of the year, when bonuses are near rock bottom and when people are unable to fulfill their financial commitments, especially through credit card spendings.
S’pore slips into recession
MTI lowers 2008 forecast to 3%, from earlier 4-5% MAS moves to ease monetary policy Inflation has peaked By Fiona Chan
SINGAPORE’S economy has slid into its first technical recession since 2002, as a slump in exports pushed quarterly growth into negative territory for the second quarter in a row.
The economy shrank by a worse-than-expected 0.5 per cent in the third quarter compared to the same period last year, according to estimates from the Ministry of Trade and Industry (MTI) released on Friday morning.
MTI has also revised its full-year growth forecast for the second time this year, lowering it to ‘around 3 per cent’ from 4 to 5 per cent previously. This would make it the weakest pace in seven years.
Recognising growth concerns, the Monetary Authority of Singapore also changed its policy stance to zero appreciation of the Singapore dollar, reversing the gradual appreciation policy it has adopted since 2003.
On a quarterly basis, third-quarter GDP contracted 6.3 per cent from the second quarter, on top of a 5.7 per cent decline in the previous three months. A technical recession is generally defined as two consecutive quarters of decline.
Manufacturing led the slowdown again this time around, weighed down by a poor performance in the biomedical sciences segment. It was also hit by weakened global demand for exports as the United States-triggered financial crisis spreads around the world.
The sector shrank by 11.5 per cent in the third quarter, after declining 4.9 per cent in the previous quarter.
Growth in construction and services also slowed. Construction, in particular, saw its pace of expansion halved to single-digit growth, as projects were delayed by the construction squeeze, said MTI.
Services, touted as a key driver of growth this year, is likely to take a hit as well as financial services falters in the wake of the global credit crunch.
Most economists expect the economy to grow even more slowly next year, with the chance of a technical recession turning into a ‘real’ one.
‘With external conditions deteriorating and the lack of domestic demand support, we expect Singapore to register no growth next year… with a muted recovery, if at all, expected only in the second half of next year at the earliest,’ said Morgan Stanley economists in a report.
Inflation peaks
Inflation, which reached a 26-year high earlier this year, has peaked, said MAS. Consumer prices will rise between 6 per cent and 7 per cent this year, and gains will ease to between 2.5 per cent and 3.5 per cent in 2009, it predicted.‘Against the backdrop of a weakening external economic environment and continuing stresses in global financial markets, the growth of the Singapore economy is expected to remain below potential in the period ahead,’ said MAS.
‘Inflation is expected to trend down in 2009 as the global and domestic economies slow.’
Source: Straits Times Interactive, http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_288066.html
Article extracted on 10th October 2008
For the 8th time this year, petrol and diesel prices have been steadily going down, with at least 3 consecutive dips within a span of 1 month a few months ago. This is happening as the cost of crude oil relaxed whole wide in the last few weeks. What is surprising is that, despite the cost of crude oil going down, the cost of electricity is going up… and mind you, by 21%! This is just because they are pegging to some other by-product of oil. If I were a chemical engineer good in math, I will calculate how this depreciation of crude oil can lead to an appreciation of oil by-products!
However, despite this dip, the fuel surcharge in taxis is not going away and the fares on buses will still be going up, up and away. Sigh. By the way, does anyone know how does CNG compare to petrol/diesel in terms of price?
Pump prices cut by 5 cents
Eighth cut since July; more expected in coming months
By Christopher Tan
OIL companies on Tuesday cut pump prices here for the eighth time since July amid a worsening economic crisis in the United States and Europe that has driven oil prices to near 12-month lows.
They lowered petrol and diesel rates by five cents a litre across the board. With the reduction, 92, 95 and 98-octane petrol now cost $1.863, $1.896 and $1.97 a litre respectively before discount.
Shell’s V-Power is now $2.099, while Caltex Platinum is $2.096 a litre. Diesel, the fuel of commerce, is $1.703 a litre.
The latest adjustment came as the price of crude oil fell below US$90 a barrel on Monday from a high of US$148 in July.
On the New York Mercantile Exchange, November-dated oil fell by US $4.13 on Monday to US$89.75 a barrel. Brent crude was down by US$4.49 to US$85.76.
Oil prices have been falling as the economic turmoil in the United States and Europe, spurred by the worldwide credit crisis, dampens demand. Drivers have also been switching to more fuel-efficient cars and cutting back on discretionary trips.
With the latest cuts, petrol prices are down 39 cents a litre since their July highs, while diesel is 33 cents lower.
Oil industry consultant Ong Eng Tong said pump prices should have been reduced more. ‘A US$1 drop in crude oil price roughly translates to a one-cent drop in pump price here,’ he said.
Mr Ong expects prices to slide even further in the coming months.
‘Petrol demand in the US is down,’ he noted. ‘The US is the world’s biggest consumer. Whatever the demand there affects prices everywhere else.’
But Mr Ng Weng Hoong, editor of energy news portal EnergyAsia.com, said oil will resume its northward trek in the long term.
‘The most recent analyses by the International Energy Agency and Opec predict that world demand will still be growing,’ he said. ‘No one is predicting a contraction in demand. ‘The world will still be using more oil despite the financial crisis.’
He said when financial giants like Lehman, UBS, Morgan Stanley and AIG crumpled, ‘they were forced to liquidate their long positions in oil and commodities’.
‘That’s why prices collapsed,’ he explained.
He added that Washington’s bailout plan will have an inflationary effect on the cost of goods, including oil.
But should the bailout fail, ‘watch for rioting and geopolitical conflicts to escalate’.
‘An unstable political environment will also prove bullish for oil,’ he said.
Source: Straits Times Interactive, http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_286937.html
Article extracted on 7th October 2008
Just after Singtel announced that they will be raising the rates and fees for their fixed home line service, Starhub announced that they will be providing free fixed line for their customers – hardware all thrown in for free!
Indeed, it does seem that Starhub has had the upper hand in this situation; what potential switchovers have to bear in mind is that Starhub runs on VoIP while Singtel runs over physical copper connections that are physically switched. However, given the advancement of VoIP, one can hardly tell the difference nowadays besides that suspicious occasional lag.
This will also mean that in times of blackout, Starhub fixed line users will not be able to access their phone services while Singtel users would largely be able to. Largely – because there will be some who choose to use fanciful phones that will require a power supply.
Given the current economic status (editor: which spelt “recession” on 10th October 2008), it is confounding on as to why government-privatised-companies such as Singtel and, just recently, Singapore Powers, have chosen this time to raise their rates. Given as they promise to provide “vouchers” to help the needy tide over this time of roughness, we can only hope that they don’t “run out of vouchers” just like the transport companies did earlier.
Singtel had attributed the increase to how it hasn’t raised rates and fees in the last 18 years and that copper is becoming more expensive, while Singapore Powers attributed it to “the peg to fuel prices”.
Nonetheless, if you are interested to take up the Starhub free fixed line offer, you may go to http://www.starhub.com/freehomeline
SingTel fixed-line rates to go up
Annual fee will also be raised; telco cites rising costs, offers vouchers for needy households
SINGTEL is hiking its fixed-line phone rates and annual subscription fee starting on Jan 1 next year - the first increase in 18 years.
All businesses and more than 90 per cent of households would be affected by the rises, said SingTel’s Singapore chief executive Allen Lew.
A total of 60 per cent of residential customers, and 75 per cent of business owners will face rises of not more than $1.50 a month or $18 a year, Mr Lew said. The rest would face somewhat higher rises.
The annual subscription rate will rise 10 per cent from $100 to $110 for home users and about 7 per cent from $150 to $160 for business users.
Call charges will rise 14 per cent by 0.1 cents to 0.8 cents for every 30-second block during peak hours and for every 60-second block during off-peak hours.
Peak hours will also be pushed back an hour to between 9am and 7pm from the current 8am to 6pm period, Monday through Friday, to reflect changes in call traffic patterns.
While the price increase may be relatively modest for most home consumers, the story may be different for some businesses.
Mr V. S. Kumar, managing director of Network Courier, said that communication with his customers by phone is a major part of his business. He has 24 phone lines and receives about 3,500 phone calls a day.
‘I am surprised at the timing of this announcement because we are entering a downturn and the costs of doing business have been rising,’ he said. ‘This is not very encouraging news.’
Bus and train fares were increased by 0.7 per cent at the beginning of this month. Just last week the Energy Market Authority announced that electricity tariffs would go up 21 per cent.
To help offset the higher charges, SingTel will provide $1 million worth of credit vouchers, each worth $10, to help households which are in need of financial assistance.
People in need of this assistance should approach their Citizens Consultative Committees or People’s Association grassroots leaders.
Home users who sign up for SingTel’s electronic bill statement and Giro before March 31 next year will also get a one-time discount of $10 from their annual subscription, SingTel said.
In response to reporters’ questions, Mr Lew said SingTel’s operations were beginning to feel the strain from the global financial crisis and that cost-cutting measures at the company are on the agenda.
‘It is no longer business as usual,’ he said. ‘We are starting to see the impact on sentiment in some parts of the business.
‘We are adopting a framework that is customised for what we see as another 12 to 18 months of uncertainty and a difficult economic environment.’
SingTel is starting to curtail costs such as discretionary costs and advertising costs.
Said Mr Lew: ‘Until revenue goes back to the old days we will definitely have to cut back.’
He said the telecommunications firm would provide more details of the impact of the global financial crisis on its operations when it releases its half-year financial results next month.
In the meantime SingTel does not expect to cut any jobs as yet, but will focus on ‘holding with the current manpower that we have’. Any staff members who resign will not be replaced, he said.
On the fixed-line rate increases, he explained that the rising cost of labour as well as copper, which is the medium through which voices are transmitted over phone lines, made the revision something ‘that we couldn’t hold off on’.
The annual average wage rose 52 per cent between 1997 and last year, according to the Ministry of Manpower. The price of copper has trebled from 1991 to last year. The copper lines are replaced every 15 to 25 years based on wear and tear, Mr Lew said.
He acknowledged that revenue from the traditional home fixed-lines is falling as more people are choosing to use mobile phones and broadband Internet connections rather than dial-up.
However, he said that the fixed-line phone is still a unique product because it does not run on power, thereby offering a reliability that other alternatives cannot. He also noted that the new rates are still among the lowest in the region.
The rate adjustment was necessary to reflect product value and to ensure the long-term sustainability of the product, Mr Lew added.
He said SingTel had considered the possibility that some subscribers would defect to other telecom companies. The company would be working to ‘convince customers of the value of this product’.
A Straits Times straw poll of 10 people found that eight of them felt they would be unaffected by the changes as they use cellphones or no longer have fixed lines.
Ms Penny Koo, 25, a lawyer, said that she felt the fee increase was not too large, and so it will not affect her usage. She said that while it may not hurt most middle-income households, some lower-income consumers may still feel the pinch.
However, Ms Pauline Tan, a civil engineer in a household of four, said that because she seldom uses her fixed-line phone, she may consider cutting the line in view of the increases.
Others The Straits Times talked to said they had already given up home fixed lines.
Mrs Josephine Tan, 57, a retired mother of one, said that when she moved into her new apartment five years ago she had decided to forego having a fixed-line phone as she saw no use for it.
chanckr@sph.com.sg
Source: Straits Times Interactive, http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_286830.html
And for your free Starhub fixed line:
StarHub extends free fixed line phone service to more customers
A day after SingTel announced rate increases for its fixed line phone services, its rival StarHub says it’s offering its residential voice service for free, to its cable tv customers.
StarHub’s fixed-line service is called Digital Voice Home, and is already offered free to its broadband internet subscribers.
The telco is extending it to its cable TV subscribers with immediate effect.
StarHub said in a statement that customers who switch from their current residential fixed-line telephone service, will enjoy savings of more than 100 dollars a year.
That’s because StarHub’s fixed line service comes with free unlimited outgoing calls to any local telephone number at any time of the day.
Article extracted on 8th October 2008
And just because I am going for a BBQ tonight, served with Chardonnay and Merlot, I am going to present a recipe for making nice grilled BBQ Portobello mushrooms.
Things that you need is simply:
After you have gotten all these from your friendly supermarket, just follow the steps to make nice, delicious grilled Portobello mushrooms:
You can actually change the concoction in steps 5-6 to anything else you wish. Some add vinegar for that extra tinge. We hope you enjoyed this session of Jean-learns-how-to-cook! =)
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