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Commentary: Where will Singapore’s next tax dollar come from?

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SINGAPORE: US President Donald Trump unveiled on Wednesday (Apr 26) a major tax reform package that aims to simplify the US tax system and bring about massive tax cuts for businesses and individuals. The proposal includes slashing the corporate tax rates from 35 per cent to 15 per cent and compressing the tax brackets for individuals from seven to three.

There is no doubt that this radical proposal will be heavily debated in Congress.

Back home, we are similarly on the cusp of a comprehensive tax review in Singapore. The Committee on the Future Economy (CFE) had advocated reshaping Singapore’s tax system given domestic and global imperatives, while maintaining a broad based, progressive and fair tax regime in its report released in February.

Building on the strategies outlined by the CFE, Finance Minister Heng Swee Keat further stressed at Budget 2017 the need for Singapore to grow its revenue base to finance rising healthcare and infrastructure expenditures, and do so in a pro-growth and progressive manner.

TAX SYSTEM MUST REMAIN PROGRESSIVE AND SUSTAINABLE

A progressive tax system which taxes high-income earners proportionately more than low-income earners is often seen to be fair, as it is in line with the economic principle of “ability to pay”. It has served us well in the past and it is prudent for the Government to ensure that Singapore’s tax system continues to be fair and sustainable.

Yet, to be sustainable, the Finance Minister had reiterated that the tax system, whilst getting the better-off individuals and profitable companies to pay more income taxes, should continue to reward effort by individuals and enterprise by companies.

Given this backdrop, how can our tax system continue to be more progressive and sustainable, even as the Government seek to grow revenues to finance growing expenditures?

To increase the tax revenue base, it is likely that changes to the tax system will be made to the largest tax revenue sources. According to the latest statistics in Budget 2017, the top three contributors of government operating revenue for the fiscal year 2016 were corporate income tax (CIT), goods and services tax (GST) and personal income tax (PIT). They accounted for 20 per cent, 16 per cent and 15 per cent of the Government operating revenue, respectively.

Local News SingaporeFinance Minister Heng Swee Keat at Parliament House on Monday (Feb 20) to deliver Budget 2017. (Photo: Xabryna Kek)

CORPORATE INCOME TAX REBATES LIKELY TO BE REMOVED

Over the years, our corporate tax rates have gradually been reduced from a high of 40 per cent in 1986 to the current 17 per cent since 2010. It is not likely that these rates, which apply to all companies regardless of whether they are local or foreign, will increase given the potential impact such a move can have on attracting big businesses to Singapore and growing our economy.

In reality, most companies already pay very much lower effective tax rates due to the partial tax exemption regime introduced since 2002, which helps companies to deal with rising business costs. From 2008, this regime was further enhanced to allow companies paying normal corporate tax rates to claim a maximum exemption of S$152,500. This comprises a 75 per cent exemption on the first $10,000 and a further 50 per cent exemption on the next $290,000 of normal chargeable income.

In addition, the Government has been tweaking with temporary CIT rebates. Starting from a 20 per cent CIT rebate capped at $10,000 in 2011, this has in recent years increased to 50 per cent from 2016 to 2017 but capped at $20,000 and $25,000, respectively. In Budget 2017, it was announced that a reduced 20 per cent CIT rebate will apply for 2018, capped at a lower amount of $10,000.

Why has this been the case? On the one hand, the use of temporary CIT rebates helps reduce the effective tax rates of small- and medium-sized enterprises (SMEs). On the other hand, it provides the Government with an effective tool to adjust the effective CIT rates based on prevailing economic conditions without committing to a permanent change in the overall CIT rates.

Local News SingaporeFile photo of an SME in Singapore (Photo: TODAY)

When pressed with an urgent need to grow the tax revenue, what is likely to happen is the removal of the CIT rebate after 2018 with the CIT rate remaining unchanged for some years. Singapore’s CIT rate is already one of the lowest in the world.

Based on the past three decades, the Government is likely to consider the next gradual reduction in CIT rates only when it feels that Singapore needs to stay competitive in response to worldwide corporate tax rate trends.

Another way to increase the CIT revenue for the Government is to gradually remove or reduce concessionary tax rates awarded to certain eligible companies under our wide range of tax incentives. This is already happening in recent years and there is scope for more to be done.

But against the backdrop of CIT cuts like those in the US, and amidst speculation that regional countries especially Indonesia may also cut CIT to match Singapore’s rates, the Singapore Government will be hard pressed not to respond to such moves to keep CIT competitive.

If so, this “race to the bottom” will be most unfortunate as it undercuts critical tax revenues needed for key social welfare and infrastructure projects that support a thriving business climate.

Otherwise, any changes to CIT rates and rebates are not likely to be significant, compared to other possible changes to the tax system to increase the tax revenue base.

PERSONAL INCOME TAXES MAY BE KEY TARGET

Since the introduction of income tax in Singapore, graduated tax rates have been introduced for Singapore residents, making the PIT system clearly progressive.

Over the years, we have witnessed tweaks in the different tax brackets. Whilst the first $20,000 of taxable income is exempt from tax, the highest tax bracket has been adjusted on a number of occasions. At one time, it used to be in line with the prevailing corporate tax rates. From 2017, the gap has widened to 5 per cent with the highest personal income tax bracket increased from 20 per cent to 22 per cent.

As our society becomes more receptive to an even more progressive PIT structure, it appears that the Government could easily introduce a new and higher tax bracket for the super-high income earners whist possibly raising the tax exemption thresholds from the current $20,000. This should bring in some net increase in the personal income tax revenue for the Government.

However, this measure could potentially conflict with the objective of making our tax system sustainable in the long run as it may disincentivise hard work by individuals or discourage enterprise by companies.

Local News SingaporeRising domestic expenditures due to ageing and global changes in tax rules will necessitate a review of Singapore’s tax system, said the CFE report released in February. (Photo: TODAY)

What appears certain is that any attempt to grow the tax revenue in this manner must be handled carefully and the affected taxpayers must understand and embrace it. Should we adopt a similar approach used by the Trump administration to simplify the PIT regime by shrinking the number of tax brackets? My view is that this is unlikely to happen as it will only make our PIT structure less progressive and consequently less acceptable.

On the other hand, some experts say introducing more tax brackets into the PIT could make the PIT less of a stepped function – meaning that individuals will then pay taxes more proportionate to the incomes they earn.

GST WILL LIKELY CONTINUE TO BE PROGRESSIVE EVEN IF INCREASED

By its nature, the goods and services tax (GST) is inherently regressive in nature because all individuals, irrespective of whether they are well off or otherwise, are likely to consume the same amount of goods. So less well-off individuals are likely paying proportionately more taxes in the form of GST.

However, since its inception in 1994, the Government has introduced GST offsets that exceed the GST burden shouldered by less well-off individuals. By now, a permanent GST voucher scheme is in place that provides transfer payments to the needy individuals. Hence, with a stroke of ingenuity, our overall GST system is also progressive, a uniquely Singapore-styled system.

Local News SingaporeThe Government will provide additional support of more than S$850 million this year to help households with their expenses, said Finance Minister Heng Swee Keat. (Photo: Ernest Chua/TODAY)

There is much ongoing debate on when an imminent GST rate increase will take place, although few expect this to happen before the end of the decade. However, some members of the public do not rule out the possibility that the Government may surprise with an earlier GST increase rate announcement if its fiscal position deteriorates significantly given higher spending on healthcare and infrastructure.

Should that happen, the Government is likely to respond with a corresponding increase in the quantum of GST vouchers for the needy individuals to ensure once again that they are at least not worse off.

Instead of an increase in the GST rate, the Government may introduce new rules to collect GST from e-commerce transactions undertaken by foreign suppliers. This idea has been introduced in other countries and is likely to gain support here as it creates a level playing field between local and overseas suppliers.

ANY CHANGES LIKELY STUDIED CAREFULLY, ANNOUNCED EARLY

As the US Senate ponders over the proposed tax reform by the Trump administration, the Singapore Government is concurrently studying all the options to meet future tax revenue needs. Given the prudent and forward-looking stance adopted by the Finance Minister’s predecessors, which he is likely to take dressing from, one thing is certain: Mr Heng is not likely to opt for a drastic tax reform similar in magnitude to that of President Donald Trump’s.

Any increase in current taxes in whichever category or the potential introduction of new taxes such as a carbon tax will certainly be studied carefully. And taking reference from public reaction to the sudden increase in water prices, any increase in taxes will likely be announced and consulted with businesses and Singaporeans early, to give time for necessary adjustments to be made.

(The years mentioned in this commentary refer to years of assessment, unless otherwise indicated.)

Simon Poh is associate professor at the Department of Accounting at NUS Business School.

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HDB to build 2,000 flats next to Pasir Ris Park as part of town’s renewal plans

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SINGAPORE: About 2,000 more public housing flats and a new mixed-used development that’s integrated with the bus interchange will be built in Pasir Ris in the next few years, announced the Housing and Development Board (HDB) on Saturday (29 Apr).

The new flats, which will be launched in three to five years, will be located next to Pasir Ris Park, and near elevated cycling and pedestrian paths that are being planned to provide direct connection from the town centre to the park, said HDB.

These are part of rejuvenation plans under the Remaking Our Heartland programme which was first announced by Prime Minister Lee Hsien Loong in 2007. Pasir Ris, Woodlands and Toa Payoh are the latest batch of towns to have had upgrading plans drawn up and which were announced this month.

At the Pasir Ris Town Centre, a mixed-use development with retail and residential units will be built. It will be integrated with a new bus interchange to provide “seamless connection to public transport services and a wide range of commercial facilities, all under one roof,” said HDB.

It added that the bus interchange will incorporate a dedicated pick-up and drop-off area for full-time National Servicemen (NSF) undergoing military training in Pulau Tekong.

A land parcel of 3.6 hectares has been set aside for the project and will be released for sale under the Government Land Sales programme in the next three to five years.

Local News SingaporePasir Ris Town Centre with a new mixed-use development integrated with the bus interchange. (Image: HDB)

FIRST HAWKER CENTRE IN PASIR RIS, PARKS GET UPGRADE

Pasir Ris and its 110,000 residents will also be getting its first hawker centre, which is on track to be completed later this year.

The two-storey hawker centre, which is located at Pasir Ris Town Park, offers 41 stalls and more than 500 seating spaces.

All existing neighbourhood centres and parks in Pasir Ris will also be upgraded. Pasir Ris Park and Beach, for instance, will get more recreational facilities and sand play areas, said HDB.

Local News SingaporeNew hawker centre at Pasir Ris Town Park. (Image: HDB)

Cyclists and pedestrians can look forward to more car-free pathways. There will be a 1.2km Central Greenway connecting Tampines Eco Green to Pasir Ris Park. It will run through the town centre and housing developments along it, including the upcoming one.

The path from the town centre to Pasir Ris park, which is about 0.5km, will be elevated to allow cyclists and pedestrians to bypass the roads below it and get to their destinations faster.

Close to 100 residents and grassroots leaders took part in focus group discussions in June and July 2015 to share their views on how Pasir Ris could be improved.

One analyst, Edmund Tie & Company’s head of Southeast Asia research Lee Nai Jia, said it was too early to say whether property prices in Pasir Ris will go up due to the rejuvenation efforts as the town is not in a central location.

“Location and transportation still play very important roles when it comes to home prices … (the) price could change once plans for the Cross Island Line are firmed up,” he explained.

Nonetheless, the additional spaces and parks meant for social activities could help create more tight-knit communities among residents, he said.

Residents can continue to provide their feedback online or at the Remaking Our Heartland exhibition at the Pasir Ris Town Centre, which will be held from Apr 29 until May 14.
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Bukit Timah’s secret kampung, hidden in a forest

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SINGAPORE: The Bukit Timah Nature Reserve abounds with dense vegetation, a variety of forest animals, noisy insects – and the ruins of an old Chinese kampung so well-hidden that few know it exists.

Flanked by thick foliage, this piece of land just behind Hindhede Drive contains the remaining structures of several Chinese kampung houses, with remnants of a well, a bathroom stall, a kitchen and a storage area still standing.

It has so far eluded many of the joggers, nature lovers and families who frequent this nature reserve.

Mr Sani Abdul Rahim, whose maternal grandparents used to live in the area, said: “Maybe (the authorities) can put a sign to indicate that there was a village here. Many people who trek in this area may see the structure, but they don’t know the history of it.”

WATCH: The story behind the ruins (2:12)

Mr Sani, 54, spent much of his childhood in the 1960s and 1970s roaming the Bukit Timah area.

Bukit is Malay for “hill” while the name ‘”Timah” is believed to have originated from a corruption of the name of the Temak tree which grows in the area. The nature reserve, which is the largest primary rainforest in Singapore, was also believed to be infested with tigers in the early 1800s.

Mr Sani remembers that the hidden settlement area used to be the site of a Malay and a Chinese kampung, but only remnants of the latter remain today.

Local News SingaporeA clearing where it is believed a Chinese and a Malay kampung used to stand.

The area is just a five-minute walk from the visitor centre off Hindhede Drive. It can be accessed via some crumbling granite steps.

A sign at the start of a trail states “Kampung trail”, but there are no markings on the map at the visitor centre as to where these remnants are.

Mr Sani, who is with the Temasek Rural Exploring Enthusiasts, told the programme On The Red Dot that the group discovered the ruins a few years ago. They occasionally conduct free walking tours to the site.

Local News SingaporeA trail in the Bukit Timah nature reserve.

This freelance photographer pointed to some of the remaining structures, and described how back then, the lower part of the house walls was made of concrete to prevent snakes and other animals from sneaking in.

The rest of the walls would be made of wood as it was abundant and cheaper to obtain.

A cooking stove belonging to a family can still be found half-covered in creepers. The wood used for cooking was usually stored in the crevices under the stove, said Mr Sani.

Local News SingaporeAn old family stove, which was located away from the main building.

AVOIDING THE NIGHT-SOIL MAN

Also surviving are the brick structures of a common toilet, where human waste was collected in a galvanised metal bucket. Because of the smell, these toilets were usually located a distance from the main house.

Mr Sani recalled how he and his friends would run away whenever they saw the night-soil collectors coming. These men had the unenviable task of taking the away the human waste to plantations on the city’s outskirts, balancing the stinking buckets on bamboo poles slung over their backs.

“We would run because of the smell. And the way those people carried the buckets was very funny – we would laugh and cover our mouths,” he said.

Local News SingaporeThe stream where villagers used to wash their clothes and play.

 

More fond memories were created playing along a stream by the kampung. It was where the villagers showered, did their laundry and collected water.

“For us, this was our favourite location to play with our boats,” Mr Sani said.

Watch the full episode on Bukit Timah here. Catch That’s My Backyard – On The Red Dot, on Fridays, 9.30pm on Mediacorp Channel 5.
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Have a strong ‘why’ and the ‘how’ will come: Pet Lovers Centre MD Ng Whye Hoe

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SINGAPORE: Despite a lacklustre climate in the retail sector, companies such as Pet Lovers Centre are bucking the trend.

Managing Director Ng Whye Hoe, however, has seen both ups and downs. Taking over in 1995, some 22 years after it opened, Ng set out to right the ship that his father and uncle first started as a family hobby business.

The family business is now one that spans 102 stores in Singapore, Malaysia, Thailand, Brunei and Vietnam, and is helmed by the second generation of the Ng family – Whye Hoe and his brothers. He went “On the Record” with Bharati Jagdish, and they spoke about business, animal welfare and the selling of live pets, and why he took over a what was then failing family business.

Ng Whye Hoe: Prior to that, I was doing my own import-export business with one of my classmates. But even before that, I was involved in Pet Lovers Centre during my school days helping out part-time. After a little while, I felt that my uncle who was running the business at that point of time had a very different way of managing the business, so I decided to start off together with another relative, together with my friends.

Halfway through in about 1995 I received a call from my mom, she asked me: “Are you keen on the business?”

It wasn’t doing well, but she asked me if I was keen to take over. I’ve always wanted to run the business. I knew my dad was always very passionate about the business, but he passed away at a very young age. I was quite sentimental about the business I must say. So I decided to take over the business together with my classmate who was with me in the import-export business and we took off. My brothers joined me later.

Bharati:  You said your uncle had a very different way of managing the business. What was wrong with the way he managed it?

Ng: I guess the management then took it as a hobby business. I think the price strategy wasn’t really right and the product range wasn’t really right. I knew that if we did this correctly, if we put our heart and soul into the business, it would turn around eventually. The first thing is to know what your customers may want and to provide it in a value-for-money way.

OTHERS THOUGHT WE WOULD FAIL

Bharati: What specific challenges did you face when you first started out and how did you turn those around?

Ng: There were many challenges. I think the first was to try to get the pricing and the product range correct. When I took over, we still had consignment stores with Yaohan in the early years, but as you know, Yaohan went bankrupt. Months after I took over, they went bankrupt and I was down easily another $80-100,000. At that age – I was about 22 or 23 – it was really quite a shocker, but once you focus your mind on the bigger picture of what you want to do, it doesn’t matter. I think that motivated at least my partner and me. We knew that we had a bigger vision and planned to be in many shopping malls and to make it a franchisable business; so we didn’t let that failure affect us. The strategy for us at that point in time was to expand and have more stores within the malls. Because we understand the concept of economies of scale, and we thought there were no other pet shops penetrating the malls. So that was one of our key strategies.

We just had to make sure we got the first store right. The first store was Shaw Centre at that point of time. We had to make sure everything was right there in terms of merchandise, everything. Once we got the concept right, we could duplicate it. It was very encouraging when I opened my first branch store and that was in Parkway Parade. I remembered that even before we opened the store, there was a small queue.

After we opened up the store, we were still replenishing stocks. It was a small store. It was only about 260 square feet, but it was brave because rentals then were very high and the suppliers also were not sure if we would succeed.

Bharati: What made you think you would succeed when other people didn’t think so?

Ng: It was the first store at Shaw Centre. When we got that right, we had the confidence. I would say that once you start to scale up, you have better traffic flow in that area, the law of averages would work with us. So the possibility to succeed was definitely there.

Bharati: I understand you’ve played all sorts of roles in your business. You have been a store assistant, a deliveryman, a cashier. What has that experience taught you?

Ng: It has taught me that if you want to start a business, you’ve got to be an all-rounder. You’ve got to know the business inside out. I think that experience from being a delivery driver all the way to a cashier really made me understand the business and what was required each step of the way to make it work better, to streamline processes, what type of software we might need to make it happen, to provide better service.

Local News SingaporePet Lovers Centre MD Ng Whye Hoe (Right)

BUSINESSES HAVE TO BE “360”

Bharati: A lot of people are bemoaning the state of the retail industry nowadays especially with online shopping becoming increasingly popular. You have an online shopping platform as well, but you are also opening up a lot of brick-and-mortar stores, not just in Singapore, but outside of Singapore as well. Why is the brick-and-mortar model still working for you?

Ng: I think currently we are beginning to see the challenges and “threat” of online stores. In the past 10 years, we have been focusing on the brick-and-mortar stores. We have an online store, but the online store is not up to mark in terms of best practices. The user experience can improved. So recently, for at least the last one year, we have been working on it. We are revamping the whole website to make sure that we are in line with best practices. We have expert advice coming in. But the way forward for us is to be omni-channel, not just focusing on the brick-and- mortar, not just on the online stores. You’ve got to be 360, because that helps in the customer experience.

Bharati: Why is the brick-and-mortar model still so important though. If you made your online channels better, people might just say: I don’t need to go to the store anymore.

Ng: I definitely feel that brick-and-mortar will still be relevant, because looking at our current stores now we are focused more on products and accessories, but what we are trying to do is to have more experiential customer service for our customers. It could be click-and-collect. At the brick-and-mortar stores we could increase the “live” animal range. We also have pet care consultants.

Bharati: But if customers are happy shopping online for pet supplies – which is the core of your business – why bother investing in the brick-and-mortar set up?

Ng: I still think Singaporeans like going to the malls and buying things at the stores if you make it worth their while. Shopping is like a sport to many Singaporeans because of the geographical distance. It’s still very relevant in my industry at this point in time.

SETTING THE TONE FOR COMMERCIAL RENTS

Bharati: There are a lot of challenges in today’s economy for Singaporean businesses. What do you see as the most pressing ones?

Ng: I think it would be the rentals and it’s also the manpower aspects of it. And lastly, of course, digitisation.

Bharati: Let’s talk about manpower first.

Ng: Definitely they are challenges because when it comes to manpower, we’ve got to change our system, our processes and how we work. What we do in terms of manpower is that we send our guys for training, and we use technology to assist us as much as possible. In terms of IT, we streamline our processes. Our guys are using iPads. Even when it comes to the warehouse, we try to optimise the workflow as much as possible. We try to use the online website to actually assist us. We have live chats just to make things seamless and minimise the necessity for manpower as much as possible.

Bharati: But you have a lot of foreign staff, don’t you?

Ng: We are in line with the Government’s quotas. But I think it’s got to be loosened slowly if the birth rates don’t improve.

Bharati: Sure, that is a long-term challenge. But why is it so hard to get Singaporeans to work for you?

Ng: It used to be harder. But I think things are slowly changing. Last time, people would shun jobs on the retail side, but now this is changing because we don’t have a choice when it comes to being manpower lean and more productive. Everybody has to take up different roles at the same time. Once you are more productive and your pay is higher, I think people can actually be a little more appreciative of what they do. It’s more fulfilling. It’s more rewarding, so I think that helps.

Bharati: You mentioned rentals as well. After Budget 2017 was announced, some businesses said they had hoped the Government would do more when it comes to providing rental relief for businesses. Do you agree?

Ng: Yes and no. When it comes to the rentals too much Government assistance may not be a good thing. Because businesses, as much as possible, should try to work things out among themselves as much as possible. A bit of Government assistance is good but it cannot be a reliance kind of attitude. I think what the Government can do is to actually set certain precedents. For warehouses in JTC, for hawkers and so on, take it easy on the rentals, I think that would set a certain precedent for rest of the landlords and the malls. The Government is doing it already, but it needs to do even more.

Bharati: Do you believe the landlords and the malls would really respond to something like that?

Ng: I guess in time to come they would, because the vacancy rate in the malls now is close to 8 to 9 per cent. I think the malls are beginning to realise the threat of online shopping, and that at the same time, the rentals have really got to soften, because if not, it’s going to be very trying for retailers.

HAVING A STRONG “WHY”

Bharati: How are you coping?

Ng: We have our challenges, but at this point of time, we are still okay because we know that we have to make our stores more experiential and we’ve improved on the customer service and so on.

We’ve got to innovate. “Innovation” is a very big word.

A lot of people think that you can do something really different, but I think as long as you do little things to make customers happy, it works. So if we have better ways of tracking stock and can answer a customer’s query immediately, that’s innovation in itself. As far as company culture is concerned, we’ve got to be very open to suggestions; as far as the team is concerned, not to shoot down their ideas too quickly. Listen with an open mind. Whatever ideas they give, maybe you can ask them questions, and not so much of gunning them down immediately. I don’t believe in that. I believe that in order to have innovation, everyone needs to have relaxed, open kind of attitude, where the leaders themselves need to set an example.

Bharati: Okay, so what do you do when you an employee gives you an idea that sounds really stupid at first?

Ng: I would tell them it’s a very interesting idea because you never know, a wrong idea today may be a right idea tomorrow.

At the end of the day, when it comes to innovation and creativity it’s got to do with exposure. So, what I do is travel overseas. For example when it came to Pet Safari for instance, I saw what the US and European stores had done – an all-in-one pet store. After our sixth or seventh pet store, I told myself, I have to do something different. I have to get ideas overseas. Nowadays with the Internet, you get a lot more exposure. These are the things that would help in the creativity part of it. Look at their ideas and build on them for your own market.

I strongly believe that if you have a strong enough “why” to do something, the “how” will automatically come. Especially in today’s era when information is free flowing, if you are hungry enough and you really want to know or to get something done, you can.

MAKE IT WORK IN SINGAPORE BEFORE YOU GO OVERSEAS

Bharati: You are continuing your expansion overseas. You have said in previous interviews that the key to internationalisation is to first make sure you are strong in your homebase, that means in Singapore. But some other businessmen see internationalisation as a way to escape their bad business record here. In other words, if you don’t succeed here, go overseas.

Ng: I don’t agree, because of my experience. My brother came in when we had about 9 stores. When he came in, we were having a different set of challenges when we stepped out and went to Malaysia. We had challenges in Singapore but we also had challenges in Malaysia. We went through very tough times. Sales were slow and we had to innovate in both places. At that time, there were instances when both of us sat down and asked: “How are we going to turn this around?”

The moral of the story is make sure you have a strong footing in your backyard first before you go to other people’s backyard. We needed to focus on one country at a time. We had to make sure everything is stable. Systems, processes, should all be there. Once things improved here, we put our focus back on Malaysia again.

Bharati: What was the problem at that time? Why weren’t things working out?

Ng: I guess we were doing too many things at the same time. We should have slowly focused on each part of the business. From the merchandise, the service, how are we going to display the product, the systems, the processes – all have got to be laid down, because from the first to the ninth store, how I managed the business at that point of time was “monkey see, monkey do”. From the tenth store onwards, you have to have proper systems, processes, guidelines. The way of doing business before just didn’t work for a larger operation. My brother came in and really helped me in that area so I could really focused on growth and expansion.

Take a look at our software for instance. Up to the first nine stores, the vendor that actually helped us said: “You actually told us that you wanted a bike, but now you are telling me you want a car.”

So I think the software is so important, because once you get your point of sale correct, then definitely the system is able to support our growth. That is just one example.

There are cases where the business model may not be right for Singapore, but it may be right overseas. But you’ve still got to make sure the systems, the processes are correct and right before you duplicate that elsewhere or tweak it for a different market.

THE YOUNG SHOULDN’T ALWAYS EXPECT WORK TO BE FUN

Bharati: What do you think is preventing some businesses here from moving ahead despite Government assistance in the areas of productivity, technology adoption, internationalisation?

Ng: I think it could be that they are a bit overwhelmed. But I am sure with the assistance that SPRING provides, if they take one step forward and open themselves up to the opportunities, they can make it. I think in one way or another it can actually help, because it did actually help us, and if you are really faced with a situation where you had no choice, out of desperation, you would think of a way.

Generally, sometimes when people come out and do a business, they get too comfortable after a while and they are not as hungry. I’ve got young people coming to work for us in the stores. Some of them work for two days. After that, they resign and they don’t even come down to collect their pay. They may be staying with their parents. They don’t have to pay the rental and so on. We have foreigners working with us. They have to pay the rentals so they don’t have much of a choice and they are hungry to learn. Some of the Singaporean workers are turned off because they don’t expect work to be work. They expect work to be fun. Let’s face it, I mean work can be fun, but when you start off, you’ve got to go beyond your comfort zone. You’ve got to start work at 10am. Some young people these days wake up at 11 or 12. When they don’t work, their parents will give them money. Yet some of these parents would complain: why are my kids like that?

Bharati: How do you think this type of culture can change in a country that is generally quite comfortable for most people?

Ng: I think it comes down to parenting at the end of the day. We’ve got to let our kids know that when it comes to discipline, when it comes to work, life is not a bed of roses. You’ve really got to work hard to attain the kind of success that you want.

Bharati: What do you think instilled that value in you?

Ng: I think at that point of time I didn’t really have a choice, because the business was already down, but I must say that my parents, my mom at that point of time was very supportive. My brothers were supportive. They helped in whatever way they could. My uncles, who were shareholders of the business, they were successful, they are successful business people, they gave me a lot of advice and encouraged me along the way. So I am very grateful for that.

Local News SingaporeManaging Director of Pet Lovers Centre Ng Whye Hoe examining the company’s products.

DO PROFITS TRUMP ANIMAL WELFARE?

Bharati: You have declared before that you are an animal lover. You also set up the Pet Lovers Foundation which is a non-profit entity through which you support animal welfare organisations and animal shelters in Singapore. But in spite of all of this, you, for many years have been selling live pets in your stores. You sell small animals and you have tenants who sell dogs.  Why do that when there are so many animals in animal shelters without homes and waiting to be adopted?

Ng: We advocate adoption as well, but there is always this group of people who would rather not adopt and they want to buy. We are just catering to both ends of demand. We see this as a matter of rightful and personal choice, a choice that we respect, just as we respect those who rightfully and personally prefer to adopt. Hence, our desire to respect all, to love all, and to serve all.

Bharati: But as an animal lover, why continue to do something that is considered a travesty by some animal welfare organisations. Even if you get your pets from responsible breeders, People for the Ethical Treatment of Animals (PETA) in the US believes that as long as dogs, and cats, and other animals are dying in animal shelters, no breeding can be considered responsible. Why continue to fuel this business by selling live pets in your stores?

Ng: I guess at the end of the day we’ve got to strike the balance between the two. For us, we do whatever we can. We always advocate adoption first. We let the customers know that there are options. Even for children, who come to us and say, the hamster is very cute, I want to buy the hamster now, my pet care consultants in the store actually ask them questions and make sure that the parents are around to make sure that they are committed to look after the pets at that point of time and not (do it) out of impulse buying.

Bharati: Have you turned away customers?

Ng: Yes, of course we do. Of course we have done that. A lot of children will say “so cute!” then they pull their mummy and daddy to take a look. My people will tell them: A pet is a lifetime commitment. It’s not a one-time thing. It’s not a product.

Bharati: Why not take a clear stance? You can make money by selling pet supplies, pet grooming services. Why continue to sell live pets?

Ng: I guess, probably, you could be right. In time to come, we may actually do that. But we just feel that at this point in time, we are just not ready from a business standpoint to completely just say look, we don’t sell any live animals at all.

Bharati: Is the monetary imperative so important to you that you are willing to do this, to fuel a business that really doesn’t need to exist at this point?

Ng: I guess there is economics behind it. But we really have got to manage this in such a way, whereby people are actually responsible when they want to buy a pet or small animal, and not just impulse, and we try to educate them as much as possible and not to turn it into abuse or neglect. I don’t deny that the economics is part of it. The business economics is part of it.

Bharati: Do you not make enough through the other products and services you offer that you have to make money off live animals?

Ng: With live animals and so on, it does complete the experience especially with someone stepping into the store. It does help in terms of the experiential aspects of the business.

Bharati: What do you have to say to people who say it’s unethical, what you do is unethical?

Ng: We are doing whatever way we can. And eventually, we may head towards that direction.

Bharati: The conditions that some of these animals are kept in for hours, even if you are complying with AVA (Agri-Food and Veterinary Authority) guidelines and standards and licensing requirements, seem hardly humane. I have seen large dogs in an enclosure that fits them and they have some room, but surely it can’t be ideal.

Ng: I think the AVA has stepped up quite a fair bit, and I am glad that they did that, all the rules and regulations. Even with the tenants that are with us, what happens is that our pet care consultants within the store, would tell them if the cage is too small for the dog.

Bharati: Any cage is too small.

Ng: Yeah, but every now and then what the providers would do, at least in our stores, is that they would bring them out for walks and so on. And we don’t enclose them the whole day. The fact is that it’s cruel. I think more needs to be done in terms of education, and if the pet stores were to abide by new regulations by AVA, that is the first step. We try to educate customers as much as possible. For example, if the dog is barking too much it could be a call for attention, maybe they need to send to dog for training, they need to spend more time with the dog. We are interested in education.

Bharati: A lot of people say: these pet stores, they are only interested in making money. They don’t really care about animals. You yourself admit that your focus is on the economic imperative.

Ng: But if you actually take a look at what Pet Lovers Foundation has done …

Bharati: But that doesn’t cancel out the potential wrongs that may be occurring on the business side of your company.

Ng: Sometimes it’s hard to please everybody. That’s the fact of life, that’s the fact of life. Sometimes we do what we can. We do give back, and we have raised at least 130 tons of dog food, for animal welfare groups in Singapore. If you talk about the retail value of that, I just did a mental calculation a few days back, that’s close to S$2 million. I think my guys would ask and probe. And that’s why we work very closely with the animal welfare organisations. At some of our stores, we give out prime space to them for animals up for adoption. I am proud to say that we have rehomed no less than 250 dogs.

Bharati: I am not saying you are not helping at all. I am just wondering why the other part still continues.

Ng: I would say economics, and I think this is something we can consider in time to come, but probably not just now.
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Bukit Timah’s secret kampong, hidden in a forest

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SINGAPORE: The Bukit Timah Nature Reserve abounds with dense vegetation, a variety of forest animals, noisy insects – and the ruins of an old Chinese kampung so well hidden that few know it exists.

Flanked by thick foliage, this piece of land just behind Hindhede Drive contains the remaining structures of several Chinese kampung houses, with remnants of a well, a bathroom stall, a kitchen and a storage area still standing.

It has so far eluded many of the joggers, nature lovers and families that frequent this nature reserve.

Mr Sani Abdul Rahim, whose maternal grandparents used to live in the area, said: “Maybe (the authorities) can put a sign to indicate that there was a village here.

“Many people who trek in this area may see the structure, but they don’t know the history of it.”

WATCH: The story behind the ruins (2:12)

Mr Sani, 54, spent much of his childhood in the 1960s and 1970s roaming the Bukit Timah area.

Bukit is Malay for ‘hill’ while the name ‘Timah’ is believed to have originated from a corruption of the name of the Temak tree which grows in the area. The nature reserve, which is the largest primary rainforest in Singapore, was also believed to be infested with tigers in the early 1800s.

Mr Sani remembers that the hidden settlement area used to be the site of a Malay and a Chinese kampong, but only remnants of the latter remain today.

Local News SingaporeA clearing where it is believed a Chinese and a Malay kampung used to stand.

The area is located just a 5-minute walk from the visitor centre off Hindhede Drive. It can be accessed via some crumbling granite steps.

A sign at the start of a trail states “Kampong trail”, but there are no markings on the map at the visitor centre of where these remnants are.

Mr Sani, who is with the Temasek Rural Exploring Enthusiasts, told the programme On The Red Dot that the group discovered the ruins a few years ago. They occasionally conduct free walking tours to the site.

Local News SingaporeA trail in the Bukit Timah nature reserve

This freelance photographer pointed to some of the remaining structures, and described how back then, the lower part of the house walls were made of concrete to prevent snakes and other animals from sneaking in.

The rest of the walls would be made of wood as it was abundant and cheaper to obtain.

A cooking stove belonging to a family can still be found half-covered in creepers. The wood used for cooking was usually stored in the crevices under the stove, said Mr Sani.

Local News SingaporeAn old family stove, which was located away from the main building.

AVOIDING THE NIGHT-SOIL MAN

Also surviving are the brick structures of a common toilet, where human waste was collected in a galvanised metal bucket. Because of the smell, these toilets were usually located a distance from the main house.

Mr Sani recalled how he and his friends would run away whenever they saw the night-soil collectors coming. These men had the unenviable task of taking the away the human waste to plantations on the city’s outskirts, balancing the stinking buckets on bamboo poles slung over their backs.

“We would run because of the smell. And the way those people carried the buckets was very funny – we would laugh and cover our mouths,” he said.

Local News SingaporeThe stream where villagers used to wash their clothes and play.

More fond memories were created playing along a stream by the kampong. It was where the villagers showered, did their laundry and collected water.

“For us, this was our favourite location to play with our boats,” Mr Sani said.

Watch the full episode on Bukit Timah here. Catch That’s My Backyard – On The Red Dot, on Fridays, 9.30pm on Mediacorp Channel 5.
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Daughter appeals for help to bring dad with heart failure back home from Tokyo

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It was meant to be a celebratory trip but in an unexpected turn of events, a Singaporean family of three is now stuck in a foreign land with a huge medical debt to pay off. 

On April 19, 2017, Singaporean Eileen Cheong, 25, and her parents flew to Tokyo. It was a trip to celebrate her mother’s remission from cancer.

But when they arrived at their destination, her father, who has had a history of heart failure, when into cardiac arrest. He was resuscitated and admitted to Toho Medical University Omori Hospital where he remains in the intensive care unit (ICU).

In need of financial help, Ms Cheong turned to crowdfunding site Giveasia to appeal for donations so that she can bring her father, who is currently in coma, back to Singapore.

According to Ms Cheong, hospital bills have come up to $120,000. Each night in the ICU there costs approximately $10,000.

The family has not been able to claim their medical bills from their insurer because of her father’s pre-existing heart condition. 

According to the doctors in Japan, Mr Cheong may never recover from this. They were also unable to say when he will come out of his coma. 

But Ms Cheong still hopes her father can return to Singapore where he can receive subsidized healthcare.

“While my father’s life hangs on the line on foreign soil, we have no idea if and when we will be able to bring him home,” she wrote. 

“Our hope is to bring him back to Singapore, where we can receive subsidized healthcare and financial aid, not to mention emotional support from our loved ones.

“However, our only viable option is to arrange for a medical evacuation, which will cost us another approximately SGD$120,000 (based on quotations obtained) that we are unprepared for but have to shoulder.”

In total, Ms Cheong is in need of about $250,000 for her father’s medical bills, including air ambulance transfer.

Ms Cheong shared that as a fresh graduate, she earns less than $3,000 a month and while she tutors in her spare time, the money she earns goes into supplementing their household income and paying off student loans. 

Her mother is a homemaker and her father is a logistics manager who earns an average of about $3,000-$4,000 a month.

At the time of this report, slightly over $100,000 has been raised to help Ms Cheong and her family. To donate, click here

maryanns@sph.com.sg

 

 

 

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MP Rahayu Mahzam gives birth to baby boy

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This is the first child for the Member of Parliament who previously said she and her husband were seeking treatment in their bid to conceive.

Local News SingaporeMuhamad Ayden was born on Apr 7. He is the first child for MP Rahayu Mahzam. (Photo: Rahayu Mahzam/ Facebook)

SINGAPORE: Jurong GRC Member of Parliament Rahayu Mahzam has given birth to a baby boy, she announced in a Facebook post on Friday night (Apr 28).

“Meet my son, Muhamad Ayden,” she wrote. “Thank you to all family and friends (including my colleagues, grassroots leaders, partners and residents) who have blessed us with your prayers and beautiful gifts.”

She added that Ayden had an extended stay in the hospital and was brought home earlier this week.

This is the first child for the MP who gave birth on Apr 7.

Ms Rahayu, who is a trained lawyer, told 938Live in an exclusive interview on October 2015 that she and her husband were seeking treatment to conceive a child. She spoke candidly of having to deal with comments from people who assumed that she was not proritising having children.

“It doesn’t happen that way, and I know a lot of friends who are also trying, and have tried for many years, and it’s not an easy journey,” she said. “I suppose as a woman, as someone who has been trying for many years, it’s a sensitive question.”

Ms Rahayu became an MP after contesting in the 2015 General Elections. She is currently a partner at the law firm of Heng, Leong and Srinivasan and was formerly a Deputy Registrar of the Syariah Court from 2013 to 2015.

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Explore over 50 cities with Singapore Airlines early bird fares fr $148 all-in. Book from 28 Apr – 30 Sep 2017

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More SIA promo fares fr $148 all-in, previously made available for UOB cardholders only. Now open to everyone!

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China's first androgynous all-girl pop band challenges ideal of femininity

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BEIJING – China’s all-girl “boy band”, FFC-Acrush, had more than 749,000 followers on social networking site Weibo even before any of their music was released.

Sporting short bobs, loose T-shirts and barely there makeup, Acrush’s androgynous look is bucking centuries-old norms in a society where girls strive to look feminine and act demurely.

Marketed by sports brand Fantasy Football Confederation (FFC), the five women – aged 18 to 24 – held their first news conference in Beijing on Friday as their first single “Action”was released. “We want the girls to break the mould,” the band’s agent, Zhou Xiaobai, told Reuters.

The letter ‘A’ in the band’s name is a reference to the god Adonis – the archetype of youthful male beauty in Greek mythology.

It’s not the first time Chinese music agents have had the idea of forming a gender-neutral act.

In 2005, a boyish-looking Li Yuchun briefly won fans with her style. She also sparked debate about how women should dress in a conservative society.

Held back by worry about a social backlash, the music industry had stayed away from marketing “handsome girl” acts until 2016.

Last year, Zhejiang Huati Culture Communication, an entertainment startup backed by Tencent Holdings, was looking to create a girl band when the idea of an androgynous act came about. “It was rather a coincidence. We happened to see many’handsome girls’ during the auditions, and people thought they looked quite all right. Then it hit me that now is the time,”Zhejiang Huati’s chief executive Wang Tianhai told Reuters.

Acrush is one of several bands under the FFC brand, which aims to be a pioneer in sports entertainment by mixing sports with music and dance.

All FFC bands – including Acrush – must learn how to play football.

Football is backed President Xi Jinping, and the sport is expected to boom into a 5 trillion yuan (S$1.01 trillion) business by 2025. “It is a new adventure for us and also for the Chinese pop music market,” said Min Junqian, a member of Acrush. “I will not be afraid, because I will just be me, a handsome girl.”

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3 women arrested on third day of police raid on massage parlours

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SINGAPORE: Three women were arrested on Friday (Apr 28) when police raided massage parlours in Upper Paya Lebar, Sennett Estate and MacPherson.

Channel NewsAsia understands that the women, aged between 36 and 45, had offered sexual services to their clients for S$100 to S$150.

Condoms wrapped in aluminium foil and concealed in pill bottles were seized, and action is being taken against three massage establishments for offences under the Massage Establishments Act, said the police in a news release on Friday.

Local News SingaporeCondoms concealed in aluminium foil and hidden in pill bottles were seized in the police raid. (Photo: Singapore Police Force)

A total of 15 massage parlours were checked during three days of police operations which began on Wednesday.

Six women were arrested in Little India on Wednesday.  Checks were also conducted that same day in Bukit Batok and on Thursday in Clementi but no one was arrested.

The police said the operations are part of efforts to ensure that massage establishments adhere to the rules and conditions of their licences.

“The police take a serious view against massage establishments that contravene the provisions under the Massage Establishments Act,” it said.
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