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Tuesday February 07, 2006

China - income gap between rich, poor at alarming level

The income gap between rich and poor in China's cities has reached an "alarming and unreasonable level." The poorest 20% of the urban population get only 2.75% of the total urban income, the high level government National Development and Reform Commission said in its report, the Xinhua news agency reported. The actual figures may be even more biased against the urban poor, as the income may be underestimating the extent of China's growing income gap, the commission said.

Taxation, one of the most widely used methods of income adjustment, is also being used for this purpose in China. China's parliament last year revised a tax law that doubled the threshold for payment of personal income tax to 1,600 yuan (197 dollars) a month to ease the financial burden on the country's poorest.

(2006-02-07 23:34:44 SGT) [Biz] Permalink

Japan middle-class shrinks

todayonline.com :

Prime Minister Junichiro Koizumi called on Japan to stop dividing itself into "winners" and "losers" as a new poll showed that the number of Japanese who consider themselves middle-class has plunged - denouncing the terms that have grown into the Japanese lexicon since the economy crashed in the early 1990s.

Official figures showed last week that there was a job available for every Japanese who wanted one for the first time in 13 years. But critics charge that the gap between rich and poor has widened under Koizumi, with part-time and temporary jobs sharply rising - far from the post-World War II "Japanese dream" of lifelong employment at a company.

A survey by the Nihon Keizai Shimbun found that 54% of Japanese believe they belong to the middle-class, down from from 75% in 1987 when Japan was in a speculative "bubble" economic boom. In contrast, the ratio of people who believe they are in the lower class rose to 37% from 20%, the leading business daily said.

search.japantimes.co.jp :

The growing economic gap in Japanese society under Prime Minister Junichiro Koizumi's reform policy is emerging as a major national political issue. Critics in the opposition camp as well as the ruling coalition charge that deregulation and intensified competition have divided society into winners and losers in terms of income and employment. If the problem is left unsolved, prospects will worsen for an economy already beset by falling birthrates and a rapidly aging population.

With Koizumi scheduled to step down as Liberal Democratic Party president (and hence as prime minister) in September, candidates for his job will need to address the issue of the widening social divide. The number of households on welfare in the past four years has increased 30% to top 1 million. Koizumi's structural reforms were aimed at revitalizing the Japanese economy. Yet excessive competition has led to the failures of unprofitable companies, an increase in the number of unemployed and underemployed through corporate restructuring, and social problems such as more suicides and crime. The dark side of reform can no longer be ignored.

(2006-02-07 23:29:51 SGT) [Biz] Permalink

Today : Migrating Singaporeans story arc

Noticed ongoing converage on migrating Singaporeans on the Today newspaper. Here they are :

1. Puzzle of migrating Singaporeans (2 Feb 2006)

It has been a new spring that left me with mixed feelings about what it really means to be a native-born Singaporean. I realised that two of my cousins' families have migrated without saying a word or leaving any contacts. One has gone to the United States and the other to Australia after living in Hong Kong for two years.

Why are so many middle-aged university-educated professional Singaporeans leaving? Is it the National Service, our education system or the changes in our society that are pushing them away? Has the influx of foreign "talents" from India and China made them feel that being citizens count for very little nowadays or is it the pull of greener pastures where life is less pressurised and less stressful?

That my cousins left quietly the soil where they were born and educated without any fanfare or leaving any form of contacts can only mean one thing - they are cutting all ties with their motherland for good. Are our policies inadvertently driving our own talents away while taking in foreigners as new citizens? This vicious cycle cannot be good for Singapore.

2. Brain drain in our backyard (3 Feb 2006)

While visiting relatives in the United States and Canada, I had the opportunity to chat with some elderly Asians, including Singaporeans. Most migrated when they were in their 20s and 30s, and they never looked back. Why should they when they are well taken of in terms of healthcare and welfare?

I know of some young people who choose to remain there after their studies. Most secure good jobs and do not encounter any discrimination at work. They have no intention of returning to Singapore, and it is not because they do not miss home or want to cut ties with their motherland. One reason is they find it difficult to adapt to our environment when they have a lot of breathing space where they are now. Also, they do not wish to compete with much sought-after foreign talent in Singapore. We must not be over-zealous in our pursuit of foreign talent that we lose sight of our own people. Persuading one local talent not to leave Singapore is far better than encouraging two or three foreign talents to come here.

3. Gloomy job prospects for middle-aged professionals (4 Feb 2006)

I refer to the letter, "Puzzle of migrating S'poreans' (Feb 2). I'm 38 and am migrating to Australia in three months' time. Despite being a degree-holder armed with 10 years of working experience, having upgraded my skills a year ago and lowered my pay expectations, I still have not found a job for almost two years. I have tried switching careers but have not met an employer willing to give me a chance to even start from the bottom.

My brother and his family emigrated to New Zealand six years ago and have no intention of coming back. He disliked the work stress, government policies and the education system here.

In short, gloomy job prospects for the middle-aged and professionals, work stress and an inflexible education system are driving us out of Singapore.

4. Can you blame them for leaving? (6 Feb 2006)

A hopeful graduate, fresh from his victory in the educational system, may be in for a rude shock when he discovers that the job market - with its plentiful supply of foreign talent - is not prepared to pay him enough for a decent lifestyle. When setting up a family, most couples will learn that the house they buy will probably cost them a lifelong mortgage. The middle-aged professionals, when they are retrenched, will have to decide whether to "upgrade" themselves - taking up menial jobs despite their immense experience in white-collared posts - or to throw their savings into entrepreneurship, for which the chances of success are slim.

Unemployment fell to a low of 2.5 per cent last quarter. However, wages have yet to recover to the level they were at in the previous cycle. In other words, jobs were created but at lower value added as a whole. The private sector has been asked not to discriminate based on age when hiring, yet public organisations continue to recruit based on age limits.

The biggest issue may be the refusal to acknowledge that the problems exist - let alone working on solving them. Given such an environment, is it any wonder that some Singaporeans choose to migrate? As I hear someone saying in a coffeeshop say: "Stayers are people who do not have the means to quit!"

If Singaporeans feel that they are not given priority over foreign talent because they are more expensive, would it not be natural for them to seek greener pastures elsewhere? Many qualified Singaporeans have given up good jobs here and moved to countries such as Australia, Canada and the United States in their families because they think these countries can offer a better quality of life. In the 1940s and '50s, our forebears left their homes and came here to seek a better life. Likewise, Singaporeans may choose to emigrate to escape the ratrace and tough competition for jobs.

5. A 'leaver' says stayers are tied down (7 Feb 2006)

I refer to the letter, "Gloomy job prospects for the middle-aged professionals" (Feb 4-5). I am 32 and am considering emigrating to Australia for good. Although I am not quite a middle-aged professional, I am getting there very soon. I agree with previous writers on their views about the prospect of living in Singapore getting gloomier.

Some say that Singapore will eventually develop into a more creative society. For now however, there are many middle-aged professionals who are jobless at the same time. Others speak of Singapore's grand policies and "vision" to be a creative society. Having the experience of both as a professional and an educator, I have first-hand experience that such grand visions do not translate into real practice.

It is sad to admit that the only "stayers" are the ones who are tied down by their families and dependents, and not passion. The "leavers", like myself, are the ones who will be separated from their family and loved ones, in search for the truly creative society and place.

- My comments : well, what do you think I'm doing staying here in Singapore? (and continuing to blog on such "gloom and doom" topics all this while). I'm now 33 and on my way to falling into similar circumstances as the other 30+ folks above. My friends and colleagues are mostly in a similar age range and we share some of the same concerns. What irony. Software R&D engineers - we're supposed to be doing pretty well - at least, in theory. But, at least for myself, the reality is just that I'm biding my time. Most likely, I can't (won't? shouldn't?!) stay here forever. The only questions remaining now are money and timing. I'm working on the money part, and my blog entries chronicle the timing part somewhat.

And, in response to Akikonomu's recent comment, of course I don't buy the happy talk of achieving some "European standard of living". With all due respect, I surely hope our dear SM wasn't referring to the declining British standard of living, driven by UK's peak oil situation in the North Sea.

In the next 25 years, global peak oil would have long arrived and gone by. Game over, one way or another.

(2006-02-07 13:13:32 SGT) [Musings] Permalink Comments [4]

Toshiba agrees to buy Westinghouse for $5.4 bln

news.yahoo.com :

Japan's Toshiba Corp. has agreed to buy Westinghouse, the U.S. power plant arm of British Nuclear Fuels, for $5.4 billion to bolster its position in the world's resurgent nuclear power industry. Japan's second-biggest electronics maker said it expected several minority investors to join the deal but that it would retain a controlling stake of over 51%. The takeover, which values Westinghouse at almost three times initial expectations, is expected to be completed in around six months. Westinghouse builds and runs nuclear power plants worldwide and is a leader in the Chinese nuclear power market.

Nuclear power was out of favor after the Chernobyl disaster in 1986 and has been dogged by concerns about the financial and environmental costs of dealing with radioactive waste. But it has recently returned to the fore. Concern over the security of power supplies and growing demand worldwide for energy have fueled a surge in crude oil prices, prompting fuel-hungry countries such as China to expand investment in other energy sources including nuclear power.

Initial expectations were for Westinghouse to fetch about $1.8 billion, however Toshiba's Chief Executive and President Atsutoshi Nishida said bidding interest in the final three weeks of negotiations pushed the price up from around $3.2 billion to $5.4 billion. "There was a lot of competition in terms of bidding. Given the potential and future growth and profit, we believe this was the right price," he said.

- Looks like, at the same time that Toshiba has abandoned manufacturing in Singapore, it's been going after much bigger game - the nuclear power industry. Me, I'm still waiting for that first nuclear power plant opening in Tuas, perhaps after the first snow falls in Singapore, probably the day after tomorrow .. ;)

(2006-02-07 12:43:55 SGT) [Biz] Permalink

Blogspot down

Looks like Blogspot is down for a while. There's probably a lot of frustrated bloggers out there. The usual cliches apply - ("you get what you pay for", "you can't expect anything from a free service"), bla bla. Is Google and its associated services hitting the "Limits to Growth" ? :)

(2006-02-07 11:45:27 SGT) [Tech] Permalink

More fuel woe for Japan Airlines

peakoil.com -> news.bbc.co.uk :

Asia's largest carrier, Japan Airlines (JAL), has remained mired in the red in the third quarter of its financial year, hit by the soaring cost of fuel. It reported a net loss of 11bn yen (US$93m) in the three months to the end of December. JAL said the fuel bill during the first three quarters of financial year 2005/06 was up 30% from the same period a year earlier, with fuel costs averaging US$71 a barrel.

Passenger numbers fell about 2% during the period at 44.04 million people from 44.84 million during the same period in 2004, as passengers declined in both international and domestic travel. Traffic between Japan and China fell sharply after anti-Japanese protests in April, when China was angered by Japanese approval of a school textbook presenting a nationalist view of early 20th Century history.

(2006-02-07 10:59:23 SGT) [Biz] Permalink Comments [1]

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