Photo
adapted from Singapore Matters'
Thursday, 27 November 2014
Wednesday, 26 November 2014
Invest in SGX Companies with Exposures in China OR Japan?
Last week for me, is all about a hectic business travels all over China
for me. The trip goes like this,
Singapore-Beijing-Tianjing-Nantong-Suzhou-Shanghai-Singapore. Phew….! While in
China, I read and heard handful of significant economic news about Japan and
China. Hence I decide to blog about the world’s 2nd (China) and 3rd
(Japan) biggest economies, and how it affects some companies listed in SGX with
exposures in these two countries.
Reading papers and enjoying
my coffee on a Saturday morning in China last week
Just two decades ago, Japan is the economic powerhouse with China’s
economy still going through its second stage of infant economic reforms. Today,
the wheel of fortune reversed as China surpassed Japan as the world’s second
biggest economy.
Japan – Short Sunrise! Long
Sunset?
In June, I blogged about Japan positive outlook after GDP grow more than
expected and Nikkei outperformed after tax hike. Read here. Optimism feels the air
for Japan then. Just a matter of months, the once land of the rising sun
slipped into recession for 3Q. This prompted Prime Minister Shinzo Abe to call
for a snap election to seek a mandate for his decision to delay the sales tax
increases, last week.
Abe and Xi Jinping awkward handshake during APEC 2014
Stocks Still Rally
What stays the same is stocks still rally in Japan due mainly to the
loose monetary policy. Most Japanese listed companies are export-oriented with
overseas factories and dependent on overseas demand. E.g. car giant Toyata and
Honda etc. The weak Yen boost their profits and these companies usually larger
in size are also less affected by rising cost and falling demand within the
country.
Aging Population, Rising Debt and Fading Job Security, Inflation
Japan faced problems of country's rising debt, aging population and fading job
security. Young Japanese are pessimistic about their country’s future prospect.
The elderly scene clearly outstripped the young due to low fertility rate and
extended life expectancies.
Today,
about four in 10 Japanese work in part-time or contract jobs with little job
security and scant benefits. For young Japanese, permanent, career-track jobs
are the exception, rather than the rule. Ever
since the consumption tax was raised from 5% to 8% in Apr this year, real wages
and purchasing power of the Japanese are shrinking. People also queue up at
supermarket when vegetables and fruits are on sale.
Abenomics Missing Targets
It seems like Abe’s economic 3 arrows are missing targets in up to now.
1) Central bank ultra-easy money depreciate yen sharply, export
increased but no real investments into Japan due to the jaded domestic demand.
Import prices increased and local SMEs suffered in Japan as costs surges.
2) Japan’s fiscal policy increasing budgets for public works projects
also faced with difficulty of rising costs of construction.
3) Policy to promote trade and investments, liberalize monopoly
electricity sector, strengthened agriculture and improve career opportunities
for women seems promising, but so far there had not been concrete measures to
push these policies forward.
Pessimistic Public Sentiments
From Yahoo
News:
College student Yuto Tanaka, 19, said he knows that
there's millions of yen (tens of thousands of dollars) in debt for every person
in Japan. But fretting won't resolve that problem, and neither would an
immediate tax hike, he said.
"This is our children's future," said Mai
Yamaguchi, a 29-year-old trading company employee heading into the gaudy
Shibuya shopping area for an outing with her 4-month-old son and two other
young moms and babies. "Child care, elder care, social welfare are all
going to be even bigger burdens for us."
China – Consolidates Slower
Growth with Rising Charm
On the contrary, China future outlook seems brighter. Chinese people I
spoke to are very optimistic about the country and most of them are happy with
the efforts of the government so far.
Strengthened Relationships with Rest of World
China President Xi Jinping who started his fearsome campaign clamping
down corruption is showing the softer side of him, busy strengthening relationship
with the rest of the world recently.
Last week, Xi had successful state visits to Australia, New Zealand
and Fiji with agreements to expand
their burgeoning trade relationships.
"I have personally felt very privileged these last
few days to have spent so much time with President Xi, and to have felt so much
warmth personally. These have been some of the most remarkable days of my life.
The transition of China from the third world to the first world is a
transformation unparalleled in human history. It is the greatest human advance
of all time. And we here in Australia are so lucky to have benefited from that
rise." – Abbott, Prime Minister of Australia.
Xi Jinping in front of Government House Wellington
Maori nose-rubbing accept
Earlier in
Sep, Xi Jinping visited India’s Modi.
India and China then signed 12 agreements, with China committed investments
worth $20 billion in India over the next five years. Under Xi, USA-China relationship is seeing
improvement too. Xi said, "If China and the United States are in
confrontation, it would surely spell disaster for both countries." Xi also developed strong personal relationship
with Russia’s President Vladimir
Putin in the wake of the Ukraine crisis. Both leaders share strong
nationalistic views and are always ready to assert themselves against Western
interests. China has also taken on a more critical stance of North Korea, while improving its
relationship with South Korea. Even
in the light of historical soured China-Japan
relations, the recent Xi – Abe’s “Handshake” though awkward is a huge leap of
improvements between the two nations’ relationships.
Rising Middle-Class driven by Young Population
Oppose to Japan’s aging population, China had a population of rising
middle income class driven by a young population filled with drives and eagerness
for success.
Benefits of Centralized Power
While
Japan is struggling with internal political opposition, China communist party has
centralized power on reforms to ensure continuity. This is especially important
to rule a country with billions of people.
New Measures
Implemented
To boost
growth, China had also announced interest rates cut just
a few days ago. The lending rate will lowered by 40 basis points to 5.6% and
the one-year benchmark deposit rate lowered by 25 basis points to 2.75%. The recent Shanghai and Hong Kong
stock exchanges link is another move aimed to create and facilitate more
investment opportunities within the country.
Rolf’s Summary – How it Affects SGX Companies
It is clear China is having an edge now over Japan in current situation. But it is only fair to give Abenomics more time before discounting its effectiveness. One negative quarter does not spell doomed failure. China is not without its own problems as its economy is seeing slow growth near to contraction, coupled with increasing non-performing loans. This prompted the cut in interest rate.
Companies with China
Exposure
A more stable Chinese environment should also benefit Singapore stocks
with China exposure. In particular, SGX Capitaland Limited
and Keppel Land Limited who have significant
property exposure in China should benefit from the more liquid environment
resulted from the recent cut in interest.
In view of hardlanding stemming from non-performing loans in China, I am
favoring State Owned Enterprise (SOE) who had a more solid financial backing
from the central government. Refer to Motley
Fool recent article here on the best value SOE listed in SGX.
One stock mentioned to have little room for error is China Merchant Holdings. I added this
stock, months earlier. Please refer to my blog post here.
Another stock in my portfolio with significant exposure in China is CapitaRetail China Trust (CRCT). Refer here for my analysis on the company. To me, it is
nature within Chinese people to love shopping or eating out in retail malls.
Hence I am longing CRCT.
Companies with Japan Exposure
As for Japan, two SGX companies with comprehensive exposure are Croesus Retail Trust (CRT) and Saizen Reit. The former invests in
Suburban retail malls while the latter place emphasis primarily on
residential-related assets.
In its latest results, CRT reported robust financial performance with
increasing income for distribution by 8.6% yoy. DPU of 2.08c also outperformed
forecast of 1.89c. On the other hand, Saizen Reit is seeing yoy revenue decreased by 1.6%,
due mainly to a decrease in occupancy rates and the sale of 2 properties.
Higher repair and renovation expenses as well as the increase in consumption
tax expenses further contributed to the decrease in net property income of 3.7%
One important thing to note is also both companies’ earnings will be adversely
affected if Yen continues to weaken against S$ and economy persists in
recession. However the indicated dividend yield of 7.0% for Saizen and 8.8% for
CRT are still worth the thoughts of to invest.
This blog and its contents contain the opinions and
views of me. It is not a recommendation to purchase or sell the stocks of any
of the companies or investments herein discussed. If a reader requires expert
financial advice, a competent professional should be consulted. I cannot
guarantee the accuracy of the information contained herein the blog and its
contents. Other than being the shareholders of some of the stocks discussed
herein at the time of writing, I am not in any way related to the company
mentioned within the blog. I specifically disclaim any responsibility for any
liability, loss, or risk, professional or otherwise, which is incurred as a
consequence, directly or indirectly, of the use and application of any contents
of this blog.
Related Posts:
Saturday, 15 November 2014
To be a Successful Investor, Start Earning First – The Warren Buffett Story
Most people may think
a successful investor is one that excels in spotting great companies, invest in
it and then get rewarded with high returns.
But the fact is
aside from sharpened investment skills, many successful investors either possess
remarkable entrepreneurism or had scaled corporate ladders to senior positions
in their careers. This allowed them to earn and save enough before embarking in
their investment business. Just to name a few - Warren Buffett, Peter Lynch,
George Soros, Jim Rogers, Philip Anschutz, Ronald Perelman etc.
Are you a Great Investor Yet?
You may think that you are already a great investor? This is because you
read almost all books relating to investments, read about all great investors
and know what they are thinking. You are expert in dissecting annual reports, reading
charts, timing the entry and exit and earn great returns for every dollar you
invested. Almost every stock you picked is potential winner!
BUT, you lack funds! Sometimes you wish you can
have millions of the funds to invest to make more sizeable returns? You
probably lament that you do not have a wealthy parents with inheritance of
funds. Neither are you so lucky enough to profit from property sale during
periods of euphoria.
NOW, ask yourself
this question, “Have you already learn how to Earn and Save enough to make your Investments more effective?”
Warren Buffett Earning Prowess
Today’s focus will
be mainly on Warren Buffett who is widely considered the most successful
investor in the 20th century. Buffett is not just a proficient investor, he is
extremely business savvy and had excellent interpersonal skills with people. The latter two skills allowed him to increase his earnings at a tender age. In turn, his earnings were saved and put into good use in investments.
Buffett started
earning when he was 6 years old in 1936 and bought his first stock at the age
of 11. As a boy, Warren Buffett did all sorts of jobs selling chewing gums,
coca cola drinks, pitching newspapers etc before starting businesses in
pin-ball, stamps, car-buffing and developed many other means of earning money,
all before he turned twenty.
Other than growing
his stock portfolio, his earning ability at a young age is amazing. At age 16
in 1946, he amassed an equivalent of US$53K of today’s money. At 19 his savings
reached more than US$98K of today’s money.
1936, Age 6 - Start selling Chewing Gums and Coca Cola
Buffett started selling
Juicy Fruit chewing gum (packs of 5) door to door. He will not sell 1 piece,
because he thought he may be left with 4 pieces he could not sell. He made 2
cents profit per pack.
Buffett worked in
grandfather store. He would then also purchase Coca-Cola six packs for 25 cents
and sold each can door to door for 5c (total for 30c). Profit of 5c per pack.
1941, Age 11 – Bought First Stock
Buffett purchased 6
shares of Cities Service (now known as CITGO – an Oil company) at US$38 per
share (total US$3.7k today’s money). He bought 3 for himself and 3 for his
sister Doris. The company fell to US$27 shortly but climbs back to US$40 which
Warren and Doris sold their stock. Almost immediately, it shot up to US$200 a
share. Buffett later cited this experience as an early lesson of patience in
investing.
1944, Age 14 – First Income Tax Returns
Buffett filed his
first tax return and deducts his bike and watch as a work expense to save US$35.
1945, Age 15 - Delivered
Newspapers
Buffett earned US$175 a month
(US$2.3k today’s money) from delivering the Washington Post newspapers a couple
hours a day. This is more than his teachers’ monthly salary. He also sold
calendars to his newspaper clients, bringing in a little extra. By 1947, he had
earned over US$5k delivering newspapers. He also invested US$1.2K
(US$15.8K today’s money) of his savings into 40 acres of farmland.
1947, By Age 17 – Started Many Different Businesses
Pinball Business
In high school,
Warren and a friend Donald started to purchase a used pinball machine at US$25,
repaired it (Donald did) and placed in a Barber Shop. Buffett convince the
Barber owner that he is representing Wilson’s Coin Operated Machine Company and
that the Barber will have no risk putting the machine in his store, which they
will split the profits earned. Buffett and Donald made US$50 within a week.
Within months, they owned three machines in three different locations. The
business is sold later in the year for US$1.2K to a War Veteran.
“You had to get along with the barbers. That was
crucial. I mean these guys could go buy these machines for 25 bucks themselves,
so we would always convince them that it took someone with 400 IQ to repair
pin-ball machines.” - Buffett
Collect Dumped Horse Track Tickets
Buffett and a friend would go to the race track, and
though they were too young to make bets themselves, Buffett quickly found a way
to make money: by stooping, which was like dumpster
collecting race track tickets.
Here’s Buffett’ description “At the start of racing season you get all these people who’d never seen
a race except in the movies. And they’d think that if your horse came in second
or third, you didn’t get paid, because all the emphasis is on the winner, so
they’d throw away [second-] and [third-place] tickets. The other time you
would hit it big was when there was a disputed race. That little light would go
on that said “contested” or “protest.” By that time, some people had thrown
away their tickets. Meanwhile, we were just gobbling them up. It was
awful; people would spit on the floor. But we had great fun.
And if they found any winning tickets, Buffett’s aunt
Alice would cash them in for the boys. Buffett went a step further: using
his love of math and collecting information, he and a friend
put together a tip sheet for bettors at the race track. Soon they were out
hawking “Stable Boy Selections,” a tip sheet that the boys typed out on an old
Royal typewriter in Buffett’s basement.
Sold used Golf Balls
Buffett’s friends and family thought he scooped the
balls out of water and resold them. Instead Buffett ordered from a provider in
Chicago. Buffett sold them in Omaha for US$6 (US$64 today’s money) a dozen.
Buffett said
“They were classy balls, Titleist, Spalding Dots and Maxlis, which I bought for
US$3.5 a dozen. They looked brand new. He probably got them the way we first
tried to get them, out of water traps, only he was better.”
Sold Stamps
If you needed a fancy stamp, you could turn to
Buffett’s Approval Service, which sold collectible stamps to collectors around
the country.
Buffed cars
The teenage Buffett partnered with his friend Lou
Battistone to form Buffett’s Showroom Shine. The car-buffing business ran out
of Battistone’s dad’s used car parking lot. The duo later discarded the
business when it turned out to be too much manual labour.
1949, Age 19 – Savings reaches US$9,800 (US$98K today’s
money)
1950, Age 20 – Offered to work for Benjamin Graham
for Free
Buffett enrolled at Columbia Business School learning
from Ben Graham and David Dodd, two well-known security analysts cum
professors. Buffett wanted to work on Wall Street, however, both his father and
Ben Graham urged him not to. He offered to work for Graham for free, but Graham
refused.
Related Posts:
Thursday, 13 November 2014
Invest in a House before a Stock? – Peter Lynch
Peter Lynch (Wikipedia) one of the most enviable
fund manager of all time written in his Book “One Up on Wall Street” that we
should buy a house before we invest our money into the stock market.
Do I own a house? Lynch
suggests that you buy a house before you invest your money in the stock market
because, "in 99 cases out of 100, a house will be a money-maker."
Is
this True?
The
way he sees it, a house is rigged in your favour. You can acquire one for 20%
down (without having to make the cash call like you would with a stock bought
on margin), the leverage you use increases your returns, and the interest on
the loan is tax deductible.
In
addition, people generally do more research when they buy a home than when they
buy a stock, which further increases the chances that the investment will turn
out well.
One of the most successful fund
managers of all time, advocating public to invest in a house taking advantage
of leverage before investing in a stock?
Let
us see why.
Property better than Stocks? It
depends
Peter
Lynch said that when people look at a house, they're very careful. They look at
the school system. They look at the street. They look at the plumbing. When
they buy a refrigerator, they do homework.
But
when it comes to stock people are so convinced that the small investor has no chance,
the stock market's a big game and then they act accordingly to the masses. "they'll
put $10,000 in some zany stock that they don't even know what it does that they
heard on a bus on the way to work and wonder why they lose money, and they do
it before sunset."
A DTZ research showed that property prices have
outpaced equities between in the last 5 years. (Q3 2009 to Q3 2014). Using
compound annual growth rate basis, property price increased 6.1% Vs STI’s
growth of 4.2%
Does that really mean that property is better than
shares?
An article from Motley Fool also addressed this topic.
Read “Are Properties Really Better Investments Than
Shares?”
Hmmm…. Or probably it is a function of how much effort
or hours you put into research?
Renting beats buying
a home? It depends
Read an article from Business Times earlier titled
“Renting beats buying a home? It depends”
It reported that in USA, a study said that home
ownership is still 38% cheaper than renting. In Australia, another study said
that home prices are unlikely to keep growing at a rate they had from the past
60 years. A research found that if prices stay constant or appreciate 2% or
less over the next 4-5 years, renting could prove more cost-effective than
buying a property. Below is the example
Renting is More Feasible According to a Research?
Example – Purchase. Assume below:
- Condo unit purchased at ~ S$1.28 million near upper Bukit Timah area.
- Sell 4 years later
- Price appreciation less than 2%.
- Fixed interest 2.18% for next 4 years over 30 years.
- No inflation and no discount rate.
- 2 year holding period in the loan
- Minimum required down payment plus other miscellaneous fees all paid.
Overall a Loss of S$149,000/- conducted by a research
company.
Example – Rental. Assume below:
- Rental S$2,800 per month
- Rental for 4 years
Hence according to this research, renting is more
feasible over 4 years. However if property appreciate more than 2%, then the
reverse may be true instead.
Not Just Profit and Loss
R’ST Research director said owning a property goes
beyond profit and loss, but also personal and psychological factors. For
instance, pride of owning a property and also owners do build up equity as they
pay down the mortgage.
Financial security such as regular income had to be
taken into account also. Also consider maintenance fees of property over time
(wear and tear), condo monthly fees, property tax, hassle of finding tenants,
and troubles you will encounter with troublesome tenants.
Why Buying Over Rental
“If Singaporeans buy a flat or private property, they
will surely enjoy capital appreciation in the long term.” Ong Kah Seng, R’ST
Research Director.
Mr. Ong also mentioned that rental money essentially
goes to nowhere, merely helping landlord to pay off the mortgage, nor yielding
one any returns. Singapore housing policies such as CPF are also inclining
towards home ownership instead of rental. The absent of Capital gains tax in
Singapore also encourage foreigners to invest their cash in property here.
Rolf’s Summary
Property or Stocks? Ask yourself which is better for
you? Which one interests you more to perform hours of research? Which investment
class makes you can sleep better?
Personally
I will like to agree with Peter Lynch that invests in a house over your head to
stay first. Do not rent a house to stay if you intend to be in the country for
long.
Additional
real estate investments then are just like stock investments. It requires hours
spend in research until you become adept in it, before you unleash your buy
call.
I also cannot agree more that Property and Shares are
two different asset classes. They are different and you cannot really proclaim
that one is better than another.
I currently invest in both asset classes to diversify
my portfolio. This can provides me with different streams of income. Do
remember that before you invest, you require building up your warchest of
money. This requires years of regular savings as well as immense efforts in
career/business to increase your earnings.
Remember that Warren
Buffett work many jobs as a teenager and also started a “Pin Ball” business” to
increase his earnings, save and invest.
So next time, when you hear a friend saying that
“Property is better than Stocks” or “Stocks is better than Property”, there is
no need to be agitated and start arguing against it. Just have to remember that both asset classes are different and both
require hours of research before you reap your rewards.
Related Posts:
Saturday, 8 November 2014
Book Review: LKY The Big Ideas (Part 2)
As
extracted from the book, below article depicts summary of Lee Kuan Yew’s
philosophy expressed in his own words.
To
be Correct
“I
am not interested in being politically correct. I am interested in being
correct.”
Stood
firmly for what you believed
“..
If you want to be kind to your people, then you have got to be firm. And at
times, stern to those who have a duty to perform to see that the duty is
performed.”
Strength
and Determination
"If
I decide that something is worth doing, then I'll put my heart and soul to it.
I'll give everything I've got to make it succeed. So I would put my strength,
determination and willingness to see my objective to its conclusion."
"I
do not classify myself as a statesman. I put myself down as a determined,
consistent and persistent. I set out to do something. I keep on chasing until
it succeeds. That is all... "
Man
of Action - Get things done
"I
am not great on philosophy and theories. I am interested in them, but life is
not guided by philosophy or theories. I get things done!”
Confront
the Problems
"If
things go wrong, do not sweep aside. Confront the problems, get to the root of
difficulties and wrestle with them resolutely. Go for long term success and do
not be deterred by criticism.”
Discussions
with Knowledgeable People
"You
must not overlook the importance of discussions with knowledgeable people. I
would say that is much more productive than absorbing or running through masses
of documents. Because in a short exchange, you can abstract from someone who
has immense knowledge and experience, the essences of what he had gained."
Personal
Relationship.
LKY
has his way with words and put things succinctly and with the right nuance.
President
Clinton first meeting with LKY in 2000 during Michael Fay incident. Mr. Clinton
said "why have I not met this man before?"
Courageous - 3 Examples
CIA
Bribe 1961- Display courage to fight opponents
In
1961, CIA tried to bribe an officer at special branch. PAP laid trap and caught
CIA officer red handed. Then the CIA officer tried to bribe Lee to cover up,
offering US$1 million to PAP. LKY reveal the letter written by American
Secretary of State Dean Rusk apologizing to him and expose the USA government who
denied the incident.
Lee
said "remember all the time that we are not dealing with an enemy but the
bloody stupidity of a friend"
First
China Official Visit 1976 - We respect
people but we are not subordinate of them
In
1976, on first official visit to China, China Prime Minister Hua Guofeng
presented him with a copy of Neville maxwell India's China war, a pro-China
history of sino-Indian war in 1962. Lee handed book and said "'Mr. Prime
minister, this is your version of the war. There is another version, the Indian
version. And in any case I am from Southeast Asia - it's nothing to do with
us."
Michael
Fay 1995/6 - Stick to Principle especially Rule of Law
1995-6,
Michael Fay incident of vandalism. Singapore proceeded with the canning of Mr.
Fay despite USA government Bill Clinton pleaded not to. USA is very angry and
froze several aspects of bilateral ties. However the gains were much bigger as
Singapore firm stand against the strong American pressure. This incident also
helped to expand Singapore geopolitical space in the region.
Vladimir Lenin'd famous maxim "probe
with a bayonet: if you meet steel, stop. If you meet mush, then push."
Rolf’s View
Again, I emphasize that this article is by
no means trying to take sides politically. The main purpose is to reflect the
important factors contributing to what we are today, as a nation. Most
importantly is to learn from one of our country’s most prominent figures.
Leaving
a deep impression to me are the following points, which I felt are also applicable in our life, career/business or investment journey.
- Before you start anything, be honest, have integrity and non-corruptible
- If something is worth doing and what you firmly believe, chase till the end.
- Size does not determine our destiny.
- Stay relevant always. Adapt and Change if necessary.
- Be courageous. Respect is always mutual, despite your size disadvantage.
- Taking calculated risk is necessary at times, as long as you plan thoroughly.
- Learn from the best including their errors.
- Be attentive to detail but keeping big picture in mind.
- Theories and Philosophy are important, but please also “Take Action.”
- Confront problems, not escape from it.
- Develop and maintain external relationship
- Think ahead and think long term
Related Posts:
Friday, 7 November 2014
Book Review: LKY The Big Ideas (Part 1)
I am on leave today from work. Since I finished reading
Lee Kuan Yew (LKY)’s latest book “The Big Ideas” last week, I decide to write a book review today.
Courtesy of Rolf Suey's Photography
This is a book that compiles accounts of people who
had worked closely with our first Prime Minister on the road to Singapore
nation building. Topics covered include law, politics, society, economics,
governance and foreign affairs. Read
news about the book here.
Anyway
this article is not meant to take sides or views politically. Primarily, it is
a book review to reflect the important factors contributing to what we are
today, as a nation. Most importantly is to know what we can learn from one of
our country’s most prominent figure.
Singapore
Singapore is not an ordinary country. We are tiny,
with no natural resources, and one of the most densely populated countries in
the world. Since our society is multiracial and multi-religious, the potential
for disorder and racial discord is high. Also, Singapore is situated in a
turbulent region with two large neighbours, each of which had quarters
resentful and envious of our independence.
Our Success
(If we will like to call it)
Singapore success is attributed to getting the
fundamentals right. Political stability, meritocracy, an incorruptible administration
etc.
Below are excerpts of Mr. Lee’s perspective towards
building a successful nation.
Political will must be very strong
Incorruptible
Honest Stewardship
Pragmatic
Believe in pragmatism not ideology. Pragmatic but still
guided by some deeply held values.
Pragmatic approach did not stop Singapore from working
wih Malaysia and Indonesia to pursue common interest.
Experimentation and Innovation
Early policies had no precedent. No blueprint prior.
Good deal of trial and error.
Adapt and Change – Nothing is static
Reasonable Men adapt,
unreasonable men change the world. - paraphrased from George Bernard Shaw.
So while you may work towards an ideology, but you must
stand firm on basic principles, you settle for what is practical at any point
of time, rather than embark on quixotic quests.
Thinking Ahead, Think Long Term
Look at the world strategically with a broad and
long-term vision, even though the purpose may not always be immediately
apparent to everyone.
Learning from the Best as well as others’ Errors
Attention to Detail, but Big Picture in Mind
Never be Micro-manager. But be attention to detail,
while keeping the big picture in mind.
No Short Cuts – Pure Hardwork and Persistence
Of course, it is not about taking reckless risks. Many
of these projects could have been stillborn if not for hardwork and persistence.
Small but Relevant
Small countries have little power to alter the region.
They must seek maximum friends, while maintaining its freedom as a sovereign
and independent nation.
Friendship in international relations is not a
function of goodwill or personal affection. We must make ourselves relevant so
that other countries have an interest in our continued survival and prosperity
as a sovereign and independent nation.
Size does not determine our destiny
Small countries need big friends. Though we are small,
but we cannot be pressured by bigger powers.
People, Leadership and Vision
A leader without vision to strive to improve thing, is
no good. Then you'll just stay put, you won't progress.
A government can only as good as people who run it.
Recruit the best and leadership renewal - Let us get
younger men and women in their 30s and 40s. Get them to take on
responsibilities of helping to train our young graduates in their 20s.
Order and Law
Good laws lead to good order. But without order, the
operation of law is impossible.
Low crime rate - you can go jogging at 2 o'clock in
the morning and feel safe.
Anybody whether he is Chinese, Indian, Malay or
Eurasian or any other race, whoever starts trouble we smack him down. And the
police and army will carry out the orders in a discipline and fair way.
Moral Education
Moral education - it is simple. You do good, you will
be rewarded. You do wrong, you will be punished.
Multiculturalism
..the perquisite of Malayan independence is the
existence of a Malayan society, not Malay, not Chinese, not Malay Indian,
Malayan Eurasian, but Malayan, one that embraces the various races already in
the country.”
Bilingualism
English is the language of workplace or
administration, but our mother tongues help us retain our core cultural values
as Chinese, Malay or Indian.
Not simply about language - it's about finding our
culture.
If you know only one language, then in this society
you will find yourself a problem for yourself and for your society. And
invariably, you will find that with knowledge of another language, which means
an understanding of a different culture, a different civilization and more
windows in the mind, come inevitably, tolerance and understanding.
Thoroughness in Preparation
Boss’s Attention to Detail
Attention to detail by the boss matters. If the boss
cares, everybody else up and down the line cares. If the boss does not care,
standards can begin to slip.
Clear communication
When you write notes, minutes or memos, do not write
in code, so that only those privy to your thoughts can understand. Write so
simply that any other officer who knows nothing of the subject can understand
you."
Frugality
Get the economics right. This includes living within
one's means; getting value for money from our purchases; keeping subsidies
limited; not protecting weak performers; frowning on cross-subsidies which
fudge true costs.
Non communist
Diplomacy
It is not about being nice, polite of agreeable. It is
more fundamentally about protecting and promoting the country's interests,
preferably by being nice but if necessary by other appropriate means.
SAF - 2 things we learnt from Israel. 1. How to be
strong. 2. How not to use our strength; meaning that it was necessary to get
along with neighbors and that no country can live in perpetual conflict with
its neighbours.
Link between Domestic and Foreign Policy
The most striking fact is how Mr. Lee sees the
inextricable link between domestic policy and foreign policy for our survival
as a nation state.
Maintain Good USA China Relationship
USA economy is resilient one since wealth of creative
talents and open to the world of talents.
China growth is real and cannot be stop will be the
biggest thing to happen in recent history.
Singapore often also acts as mediator between the two
countries.
Stay tuned to Part 2 ….
Courtesy of Rolf Suey's Photography
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