New Chapter of Life; my work life

I was retrenched from a bio-technology company and I had to leave the wonderful company on 31 October, 2016. Refer to : http://jkfund.blogspot.sg/2016/12/i-was-retrenched.html

I finally received the employment letter from the same industry as well, a Medical Equipment & Device company on 19 December, 2016. The market capitalization is 4 times bigger than my previous company. The headquarter is in Chicago, U.S.A. My past 13 years of careers are with Swiss German company.

There were just too many negative news on the media while I was searching for jobs. It was worrying, of course.

It says, "the job growth rate was slow and the job loss was aggravating in Q2 year 2016".



Monetary Authority of Singapore (MAS) says, "Singapore economics will not get significantly better next year (year 2017)".

 

The unemployment rate continue to rise, lay-offs at 7 years high.

The largest hit by lay-offs are PMET (Professionals, Managers, Executives and technicians).

The hottest industry right now and in the future in Singapore are: Software Engineering, Cyber Security, Financial Technology, Compliance and Healthcare.

But sadly enough, even I was from Healthcare industry, I was retrenched.

 Government has good initiative to make the engineering sexy again.

Government offers engineering fresh graduate a starting pay of S$3,800 per month! My generation in year 2004, starting pay was only S$2,750 per month. :(

It also mentioned that banking industry now prefers to hire engineering graduates, which I find it not so true! I didn't get any reply from GIC, UBS, DBS, etc. Perhaps they are looking for software engineers, IT related engineers instead?

An interesting article telling you not to quit your job at the year end.

There are many good articles published to tell you how to prepare for an interview.

Yes, asking questions at interview is extremely important. I always make sure I ask at least 3 questions during the interview. I prepared 5 questions instead and I also know the answers for all the 5 questions from the Internet. It is always important to show you are interested in the company.

"Your job to ask questions at interview too"

Do take note on these questions from the interviewer too!

How to survive in the corporate world?

Needless to say your resume is utmost important to capture the attention of human resource, recruiter, talent acquisition professional and your future reporting boss.

Where are the jobs?

I also had this wonderful book to prepare myself how to do a six-figure salary negotiation. It is a great book.

Best of all, I got the book at S$5 only. Amazing, isn't it?

Just a quick look of the book content for your reference.

 We also need the spiritual food in our daily life. I actively seek wisdom from the "Grace" book.

This was the page I randomly flipped right before I fly to Shanghai, China for my final interview. Work location is in Singapore.

P/S:

"My Little Career Stories" : http://jkfund.blogspot.sg/2016/12/my-little-career-stories.html
"I was retrench": http://jkfund.blogspot.sg/2016/12/i-was-retrenched.html

My Little Career Stories

I came to Singapore right after my U.S. graduate studies in December 2003.

I started to search for a job in Singapore in January 2004. I sent out about 30 resumes. My first interview was a bathroom accessories company called RIGEL. The job was a programming related to deal with the light motion sensor. Then, I also had an interview with National Instrument company for application trainer. Basically, you are teaching the Labview software for the potential clients. I also went to Chartered Semiconductor for Turn Key Engineer interview.

At the same time, I got the interview from Leica for Development Engineer position. Leica was the first company offering a firm job so I just took up the job happily in early March 2004. Indeed Leica was a great Swiss/ German company. I learnt a lot on the job, simply because I had a very good mentor, probably the best engineer in the company and he is still with the company today. I was deeply grateful that as a fresh graduate, I was given an important task to do the new production transfer from Germany to Singapore. It was a confocal laser scanning microscope project. I went to Mannheim, Germany extensively for the first 6 months to understand the complicated product completely and to build it/test it and qualify it all my myself. I then became a Process Engineer. I actually hold multiple jobs, namely, Process Engineer, Test Engineer, Quality Engineer, Troubleshooting/Rework Engineer and Project Engineer. I had to do all these functions and that was how I learnt a lot on the job. I now appreciate the great learning curve. That was the time I learnt how to create BOM (Bill of Materials) on SAP, CK11N cost roll up the BOM with the tooling cost, MMBE to check the stock overview/ goods movements to ensure we had good inventories, etc..

At Leica for 6 years and 10 months, I completed 12 business trips. Total duration of the 12 business trips was close to one year stay. All 12 business trips were at Germany (Mannheim and Wetzlar). Those were the days that Leica gave me winter cloths allowance (S$400 every 2 years) and daily allowance of S$85 at overseas. So, literally, I had extra S$85 (daily allowance) x 365 days =  S$31,025 given for the business trips. Not to forget that my Singapore pay cheque was untouched when I was at overseas. S$0 living cost spent in Singapore when I was away for total 12 months. I saved a lot during my first employment in Singapore. I also became the first batch of engineers going to Germany for the new product transfer (others were sent to Switzerland only in the past). Because of this reason, the HR rewarded me an additional S$3,000. The HR did not know if the Germany living cost was higher than Switzerland (as I was the first one to go to Germany). It actually turned out the other way round. The living cost in Germany was so much cheaper than Switzerland!

That's my first 7 years in Singapore.

During my two years of graduate studies in Michigan, U.S.A. (year 2002 and 2003), I was a Teaching Assistant (TA) for sophomore laboratory class, which was Electronic Circuit Analysis (ECE 210 module). The university waived my graduate school course fees completely (FREE studies for 2 years!). They also gave me a good stipend of US$4,500 per semester (one semester duration is 4 months). There are two semesters per year (Fall semester and Winter semester). So, total US$9,000 salaries per year. With this full time teaching assistantship, I was no longer allowed to work on campus. But, I did open a private tuition class on campus. I once had 10 students at my private tuition class and I charged US$20 per hour each person. So, easily, I can earn US$200 in just one hour. It was indeed good earning money especially you were still a student! My private tuition students were mostly from very rich countries like South Africa and Middle East. I should have charged them more!

Before I became a Teaching Assistant in year 2002, I worked various jobs on the campus. I started as a dish washer at the residence dining hall on the campus. I worked 20 hours (maximum allowed hours) per week. The pay was like US$6.50 per hour and you enjoyed free meal after work. It was good deal. I also worked as residence hall receptionist during the summer in year 2000. I remembered I slept at the sofa at the reception! Just imagine there was completely no one coming into the residence hall during the time from 1 a.m. to 5 a.m. It was an easy job obviously. I even slept during my work! My jobs were to distribute the mails to the letter boxes (that’s how I know the PLAYBOY magazine was sealed in the special BLACK plastic bag) and to watch/monitor the students coming into the residence hall, that was it!

At my fourth year of undergraduate studies in year 2001, I realized I need to do more value added jobs on campus in order to win the recognition from the professors and subsequently, I needed their recommendation to apply for the university scholarships for the graduate program, which is Teaching Assistantship. So I started as a grading assistant. I graded papers for the professors, e.g. the homework, exam 1 and exam 2 but not the final exam paper. So, in some classes, 70% of the students’ grade falls onto my hands. It was because the final exam was only 30% of the grade. I also became a lab programming assistant at the Visual Basic programming class, answered all kind of programming code problems raised by the students in the lab class.

Thereafter, I knew to get a Teaching Assistantship, I must teach laboratory class.

I happened to have one good summer semester in year 2001 to horn my teaching skills. That was the first time I taught the electric circuit analysis laboratory session in front of a class of 18 students. During my Teaching Assistant career, I had to teach 2 classes of laboratory per semester and the lab contents were all the same every single semesters. Once you knew the materials for the first time, subsequently, the teaching was so damn easy. Just imagine at the end of the day, I had to teach the same class for 10 times. I literally could close my eyes and teach and write on the chalk boards. P-SPICE was the software simulator we used to simulate the electric circuit analysis, to plot the voltage graph, current graph, etc..

I also had the privilege to serve at the President Bush Gala dinner at our campus in year 2001. That was the craziest working day in my life. We started working at 8 A.M. all the way until the following day at 3 A.M. That included a lot of over time. We decorated the dining hall, served the dinner at night and we had to wash all the dishes and put down all the decoration too. By then, I was dragging my feet in the snow, going back home at late night (3.A.M.). That was one day in December 2001. It was a great experience and that one day pay cheque was like US$ 180 (overtime pay was included).

During the summer time each year, I would run around the professor offices and collected the unwanted textbooks at the school corridor. Professors always receive the latest edition of the text books from the publishers and they will throw away the older edition of the text books by just placing them outside the office (it is a kind of recycling). I took back all the books and sold it at www.half.com . I think the website was later acquired by eBay. For me, the inventory was free, obviously and I just need to pay UPS ground shipping cost of US$2.30 to ship the book to the buyers and I always managed to clear off all my inventories.

Those are my working experiences in the United States of America.

To be continued ... .... ( the new chapter of work life)
http://jkfund.blogspot.sg/2016/12/new-chapter-of-life-my-work-life.html

Oh ya, out of no where, a consulting firm sent me a message through LinkedIn, asking me to give a phone consultation for Molecular Diagnostic Market in Singapore & APAC.

I just chit chatted with the lady on the phone for a good 62 minutes and I was paid US$186 for phone consultation. Damn, US$3 per minute consultation fee is so damn cool ! Please find me more often!

I was retrenched

I was retrenched on the BREXIT day, which was June 24, 2016.

My heart was very peaceful while I read the retrenchment letter. My current role was reallocated to Manchester, U.K.. I was, at the same time, offered an internal job rotation to be a Global Product Specialist (GPS). It is a role to conduct medical instruments training for the Asia Pacific Field Service Engineers and also provide technical support to them through emails/phone calls. I went through a phone interview with the GPS Director and he was able to raise the hiring budget and match my current salary. As I had some interview appointments going on at the same time, I kindly rejected the internal job rotation offer. 

Three months down the road, I realised the job market was tough. There were many applicants fighting for a position. After a careful thought, I decided to write to the GPS Director, telling him that I would like to take up the offer that he had presented to me three months ago. To my surprise, this GPS position was put on hold until further notice. 

Without any choice, I signed the retrenchment letter. The last day of the employment was on 31^st October, 2016. I was actually given 4 months plus notice to leave the company. That was very merciful indeed. Some companies even ask you to leave on the same day as the announcement. 

I was rewarded 1 month pay out per 1 year of service. I was with the company for 5 years and 9 months; therefore I was rewarded a cool 5.75 months bonus.

My employment was entitled for 10% bonus of the annual salary. It was due next year March. It comprises of 66% of company financial performance and 34% of my personal KPI achievement. They were kind enough to give full 10% bonus without any pro-rate on duration of employment. To achieve 100% of KPIs on the company financial performance was not possible at all. I did score 100% on my personal KPI achievement in the past few years. With this, I was rewarded another 1.20 month bonus.

I have chalked up 22 days annual leave, unused. Again, they did not pro-rate the annual leave based on my employment duration. I was then rewarded additional 1.00 month bonus (22 working days per month). I still have 2 days of child care leave unused. I should haven taken all the child care leave first and leave 24 days of annual leave instead!

Last but not least, they even gave me extra one-time cheque of a GOOD 5 digits sum to find a new job.  

However, my company stock option (total 500 shares), given to me as performance bonus, worth S$20,000 was forfeited. That was the only negative point. If the company stock option was also rewarded, I would have more than a year wages as retrenchment package. I do not have to work for one year and still get paid! How cool is that?

So the total retrenchment package was 5.75 months + 1.20 months + 1.00 month + 5 digits sum (one extra single payment).

Best of all, the retrenchment pay outs are NOT TAXABLE!

Two days after I left the company on October 31st, 2016, they announced even greater restructure. They decided to close down the California office. They will also spin off the Switzerland site and then close it down eventually too. It is a sad change obviously. Nevertheless, I have to say it is still a great company. I love working here especially there is no manufacturing line in Singapore but a contract manufacturing partner at Penang, Malaysia that is handling all the instrument manufacturing. The relationship is just like Apple (technology company) with Fox conn contract manufacturing partner. 

In view of the new US/ Europe restructuring, Singapore HR told me that it actually creates more opportunities in Asia Pacific, e.g. Singapore too. I have yet to know any new vacancies created at Singapore office. I do not mind to return back to the same company should there be any suitable position. The HR had mentioned to me that I am able to return to the company if there is any good position that suits me in the future. I do know some companies have the policy that once you are retrenched, you are no longer able to join back the same company again but that is not the case for me, which is good.

It is because I enjoyed working here. I don’t mind to work here until age 65 with the same pays throughout! I am serious, it is a work life balance job and I can work from home anytime I want. The works are basically attending the phone conference calls and writing emails only. You can do that everywhere, even at Hawaii.

I had worked at this company for 5 years and 9 months. I completed 67 business trips.

1x trip to Washington D.C., U.S.A.

1x trip to San Francisco, U.S.A.
3x trips to Brisbane & Gold Coast, Australia.
10x trips to Zurich, Switzerland. (1x of the trip went to Dusseldorf, Germany as well)
49x trips to Penang, Malaysia. (Penang had become my second home!)
3x trips to Kuala Lumpur, Malaysia.

In average, I had one business trip per month.

Those were the good days I enjoyed a lot.

To be continued ... ...

P/S:"My Little Career Stories" : http://jkfund.blogspot.sg/2016/12/my-little-career-stories.html
"New Chapter of Life; My Work Life": http://jkfund.blogspot.sg/2016/12/new-chapter-of-life-my-work-life.html

TRUE Living Cost in Singapore

CNN rated Singapore as the world’s MOST EXPENSIVE city to live in year 2016.

It is even more expensive than Zurich, Switzerland. Are you sure, CNN news?

I have worked and stayed in Singapore since year 2004 and I definitely can tell you the living cost in Singapore is not that bad. In fact, it is much lower than Kuala Lumpur, Malaysia. Let me share with you my true living cost in Singapore in great details. Here you go!

I break down the cost into few categories as follow:

 

(1) Utilities bill - S$119.

Below shown are my past 13 months of utilities bill (that includes electricity, gas & water). In average for the past 13 months, my utilities bill was S$119 per month only for a family of 3. We switch on the air con every night at 25 degree C, FYI. Government gives quite a fair bit of free rebate in this bill (S$220 per year), if not, the true electricity cost is at S$150 maximum per month for my household.

 

 

 

 

(2) SingTel Internet broadband / house phone line (FREE) / cable TV and mobile phone- S$122.

 

The breakdown is as following:

That comes with Fibre Home Bundle with 300 MB speed at S$46.64.

Cable TV Entertainment Bundle: Family Starter (including CNN / Bloomberg, Disney Kid Channels, etc..) at $34.40. The sub-total is S$81.04.

My mobile phone Combo 2 Plan (with 2 GB local data):$40.09 before 30% discount.

Caller ID is additional S$5.00, mobile phone per month is S$33.06. Above total cost with 7% GST, that’s S$122.09 per month.

 

 

 

 

(3) Foods expenses - S$600

Foods expenses: for our household, we can say it is easily less than S$10 per day (weekday lunch and dinner, can you believe it? ). 

As me and my wife work full time, we decided to engage foods delivery to our home directly at S$214 per month. Well, we surely have no time to cook for ourselves and for the little 4 years old boy and to cook such a portion is not very practical too. I also found out the foods delivery quality is not bad or better than hawker centre as it is less oily and have good varieties too, you don’t have to worry what to eat everyday.

 We usually ordered 3 months services and it comes with S$150 discount! How good can it be?

 

3 month S$214 x 3 (months) = S$642 – S$150 (discount) = S$492 / 3 (person)= S$164 /20 (days)= S$8.20 per day.

 

The food is enough for us and the little one and, that’s like S$8.20 per day for 3 persons. Of course, in certain days, I will buy more food if I see some dishes that I do not like, ha ha. That’s about 1 or 2 times per week, and I can easily just top up some mixed rice items from the hawker centres downstairs. I cook rice myself. It is an easy job.

 

 

 

 

 

There are many hawker centres in Singapore. Just below my home, there are 3x hawker centres within 10 minutes walk. You basically can get all the food you want, from chicken rice to noodles soup and mixed rice. The price range is from S$2.50 to S$5.00. Most of the Singaporean settled their meal at hawker centres as you can have all the varieties, easy to access and it is affordable.  

We spend more at weekend as we usually dine at restaurants on weekend, if not, cook at home (that's very seldom). In average, the bill comes to S$50-70 per meals (be it lunch or dinner). So, average out, one person S$600 maximum per month on foods is surely more than enough.

Below are the restaurants that we visit very often in Singapore. That's me and my boy beloved eatery places. You got to try them all when you visit Singapore!

 

The milk powder consumption is about S$1,000 per year. I got all my milk powder from AEON at Bukit Indah. :)

 

(4) Medical Cost - $0
We have medical and dental cost coverage from our employer up to S$3,000 per year (combined) for the entire family. We never fork out extra for medical cost in Singapore, which is very good.

(5) Transportation Cost - S$100 (if you don't drive)
or S$1,700 (for my case).

Taking public transport is dirt cheap in Singapore. I take a bus from my home to Jurong East MRT station (3 bus stops away) and transit to the MRT train to Raffles Place (CBD), that cost me less than S$1.60 (that's 25 minutes train journey). I used public transport in Singapore until I have kid. I can survive with public transportation too.

All right, car in Singapore is the most expensive in the world, Malaysia is the second most expensive country to own a car too. A brand new Toyota Corolla Altis costs you S$110,000 for 10 years, then, you will take back S$10,000 after you scrap your car after 10 years. So, I pay monthly car loan of S$1,200, new HDB monthly car park would be S$120, and car patrol, $200 , with all the car insurance and road tax, in average, I am paying S$1,700 for my car to ferry around my family. I do not need to pay ERP as I don't have to pass through those ERP gates. :)

If you want to save costs in Singapore, obviously you can cut the expenses here by taking the public transport and taxi services. Don't complain!

(6) Domestic helper - S$0

I do not have domestic helper. I love doing housework myself. I have all the time to do it myself too. It is a form of exercise for me and my expectation of cleanliness is very high. I rather to do it myself. If you hire one domestic helper, it shall be around S$900 per month (to include additional expenses you need to pay for them)

(7) Childcare - S$750

 

For those who have kid, unless your wife is not working, else, you will surely either to have a domestic helper to look after your kid or sending him/her to full day childcare. I love the childcare concept here. It opens from 7 am to 7 pm. I usually send him to the school at 7.30 am and pick him up at 6.10 pm. You can send your 2 months infant until age 6 (K2) to the childcare. The kid will learn massively in the childcare and they will also build up immune system. S$750 per month for full day childcare is good money spent. I would not complain about this cost.

Of course, there are also additional cost for the excursion or enrichment class if you sign up. For example, the swimming class, gym class, drama & speech class, excursion trip to play centre, etc. The fees can be ranging from S$30 to S$70 per trip.

We bring our 4 years old boy to art class as he has talents in drawing. He has the skills from his mum and maybe he can become an architect too. :) The art class is S$30 per session.

We also expose him to keyboard class (piano class). It is about S$25 per session. He does not show interest in music class so we will stop the course after the 12 sessions are completed.

 

 

 

 

 

 

(8) Housing loan - S$0

 

We are lucky to pay off our HDB housing loan 3 years ago. It has the market valuation price of S$460,000. To buy a 4 rooms flat at good location (Toh Guan, Jurong East), it was S$355,000. With 80% loan, 30 years of tenure, and interest rate of 2%, the monthly mortgage is only S$1,049. You can easily pay this amount off by using the CPF. You do not need to fork out any cash.

 

In fact, if you like, you can rent out your room at S$750 per month, 2 rooms will give you extra S$1,500 cash per month even! How crazy is that? S$1,500 can fully pay all your monthly expenses in Singapore!

 

 

(9) HDB town council fees - S$46.25

 

Jurong East monthly town council fees is S$55.50. Government has consistently waived 2 months of charges every single year. So, the monthly commitment now is S$46.25.

 

 

 

Having say all these, do you really think the living cost in Singapore is the highest in the world?

 

Surely NOT. That is for the foreign expats who stay in Singapore la ! They love to rent the expensive private property, go fine dining , pub drinking and a lot of entertainment costs too.

Few words for Malaysians
====================

I am a Malaysian too. I was born in year 1980. My friends in Malaysia always converting the expenses in Singapore from SGD to RM. If you want to do that, make sure you do not forget to convert the income too!

As a fresh graduate in Singapore in year 2004 (during my time), it was S$2,500 per month, comparably it was RM 2,500 in Malaysia too. Vice versa, assuming after 12 years of work, you are now earning S$8,000 per month in Singapore, that also means you are earning RM8,000 in Malaysia too. I told them, by then, if I minus off all my Singapore expenses, the balance I have in SGD, if I covert them back to Ringgit, it will be surely more than the gross income earned in Malaysia! (It actually means, for a monthly income of S$8,000minus the expenses in Singapore say, S$5,000 a month, you will have a balance of S$3,000 which is RM9,000 a month. That is still more than the monthly gross income of RM8,000 in Malaysia)  Not to mention, the personal income tax in Singapore is so much lower than Malaysia as well.

Last but not least, the SGD had appreciated almost 200% towards RM since year 1986. It could touch RM4.0 by year 2026. Who knows?

 

Engineering Change Order

In FDA regulated health care life science manufacturing industry, 21 CFR Part 820 Quality System Regulation is very important for good manufacturing practise for the medical device.

Engineering Change is an important topic. I would like to pen down my experiences before all faded away.

Engineering Change Order (ECO) will trigger the following requirements:

(1) Input Optimization Concept to elaborate the changes description/ benefits and impacts.

(2) Release Engineering Change Order (ECO) to manufacturing plant.

(3) Document list changes to have respective department representatives to review the changes impact on R&D/LCM, GPS, SCM, PE, V&V, RA, etc.

(4) Change form LCM (Life Cycle Management) instrumentation should be filled too.

If the ECO cannot be released at the short period of time, a temporary deviation form can be raised, for example: ANF- Approval /Notification Form.

Most of the engineering changes are due to:

(1) Correction of the engineering drawings (be it drawing errors/discrepancy), production documentation (update on assembly build instruction), BOM correction (part quantities mismatch between the BOM and the exact usage on the production line, for example the screws quantities, etc.), packing list updates.

(2) End of life (EOL) part proposed by the vendor/manufacturer that leads to new MPN change. RoHS and REACH compliances must be declared. Electrical characteristics shall be reviewed. Critical changes like photomultiplier tube (PMT), rotor coupling, stepper motor will require trial report and evaluation report for careful studies and comparison. Such change will also impact the SP (Specification) document. It has DHF (Device History File) impact.

DHF impacted changes will also required re-validation. It depends from the scope of the change and impact to the end results. Such change can also impact the application side (chemistry, reagents and assays).

There will be no change in form, fit and functional.
FDA auditors always like to see such statement stated in the Engineering Change Order. It implies that you have gone through the changes carefully, thoroughly.

(3) Escalated customer complaints (from Global Product support) leads to investigation of the problem. Design change/ improvement will eliminate or reduce the occur rate of the incidents. For example, the cable bending for too long causes intermittent. It shall be replaced by higher class of cable materials that can hold millions of bending cycles.

(4) Production software updates. User manual CD, software updates (on the BOM level) or spare part changes, new spare part added into the list.

(5) New OEM implementation. (Different label information and cover colour for example).

(6) Cost reduction project. For example to reduce the instrument 48 hours burn in test to 8 hours run in test.

(7) Refurbish protocol update (for exhibition pool, demo units)

(8) Production transfer, for example from California to Malaysia. The Production Release report must be assessed and completed then an Engineering Change Order can be released accordingly.

My Exit Strategy on Singapore Real Estates: 99 years leasehold & 99 years lease

There are different types of real estate in Singapore, namely, freehold, 999 years leasehold, 99 years leasehold and 99 years lease.

Freehold is clear. You own it forever.

999 years leasehold, as the figure had indicated, it is yours for 999 years, that’s like 10 generations?

All right, let’s talk about the exit strategy on 99 years leasehold private property and the 99 years lease HDB. It is made clear by the government that once your 99 years lease is expired, we have to return our unit to the state and our property value will be ZERO value. We have to be mindful about this. So, what should we do?

Personally, this is what I will teach my children to do.
 

In the event the property reaches 50 years old, it is time to market to sell off the properties.

 

Unlike Malaysia, we were informed that we might be paying a small sum to extend the lease once the lease is expired. In my hometown at Sibu, Sarawak, almost all the properties are 60 years lease and we will see how all these leases are extended when time dues. It is near impossible that all houses will be returned back to the state while the 60 years lease is expired. I do not think so.

 

Anyway, back to Singapore. Singapore history is young too. There are no projects reaching the expiry of 99 years lease just yet but it will come one day for sure.

I like to give the example of Lakepoint condominium (99 years leasehold) at Lakeside. Even though it is a 35 years old condo, but it is still fetching a rocket high price today. The 4 bedrooms units at 12th floor (highest floor) are still transacted at S$1,600,000 level at today market while the price of the units in year 2006 was a mere S$530,000. I was the tenant by then in year 2006.

The interesting question is, what would be the market price when Lakepoint condominium reaches 50 years old, 70 years old, etc. I am pretty sure the price would still hold or increase by the time it reaches 50 years. But I would be concerned when it reaches 70 years old as the property value shall start to drop by then, not to mention, when the 99 years leasehold is up, it will become S$0 value. But , this condo is in good position for en-bloc. It has huge compounds and less units, I am pretty sure the condo will be demolished for a good buck before it really goes all the way to 99 years! That is my bet. Hence, the location plays an important role too.

So, a fact check myself, my HDB is 16 years old and the private property is 5 years old.

I would strategize to sell off my HDB unit 35 years later, by then I would be age 71.

I also will plan to sell off the private property 45 years later, by then, I would be age 81.

Both properties would still have 50 years on lease by then. Both units located at strategic locations at Jurong East and Clementi. I would seriously think there is still an upside of 150% to 200% at least by the time both units reached the 50% of the lease. Why? It is because it would be a mature second CBD area in Singapore and the bullet train station at Jurong East shall be a busy hub too after 40 years!

That does not mean you definitely MUST buy freehold or 999 years leasehold. Location still counts after all. So, that is my exit strategy on 99 years leasehold and 99 years lease. What is yours?

Below are the information taken from parliamentary debates official report dated on 20 January 2014.

Value of HDB Flats on 99-Year Leases and Flats Undergoing Redevelopment under the SERS Programme

Mr Gerald Giam Yean Song asked the Minister for National Development (a) how many HDB blocks are more than 40 years into their 99-year lease; (b) what will be the value of an HDB flat once it reaches the end of its 99-year lease; (c) what is the average number of flats undergoing redevelopment under the Selective En Bloc Redevelopment Scheme (SERS) each year for the past 10 years; and (d) whether the pace of SERS is fast enough to redevelop all HDB blocks before they reach the end of their lease.

Mr Khaw Boon Wan : The Selective En bloc Redevelopment Scheme (SERS) is part of the Government’s estate renewal strategy for older estates. It allows intensification of land use and revitalises such estates through new developments. At the same time, it offers an opportunity for flat owners to buy a new replacement flat with a fresh 99 year lease.

In the last 10 years, SERS has benefited the owners of about 18,000 flats. As the name suggests, the identification of suitable precincts for SERS is selective. The selection of sites and pace of SERS will depend on factors such as their redevelopment potential, and the availability of replacement sites for rehousing and other resources.

Currently, there are about 300 HDB blocks with 31,000 flats which are more than 40 years into their 99-year flat leases.

Like all leasehold properties, HDB flats will revert to HDB, the landowner, upon expiry of their leases. HDB will in turn surrender the land to the State. 

Pay Yourself First

I watched one short video clip by Ken Chee talking about this concept called, “Pay Yourself First”. Video is here: https://www.facebook.com/ken.chee/videos/10154042215248722/ I would like to take down notes on what he said first, then followed by my own comments (PLEASE read until the last paragraph).

Below is exactly what the trainer said, not me. Here it goes.

The school teaches us that the income we earned minus the expenses (paying off our bills) and if we manage expenses well, we should have good savings. And this is the wrong concept. Please do not teach that to your children.

+ INCOME

-  EXPENSES

+ SAVING

The key concept is very simple, it is called, “Pay Yourself First”.

We should change the sequence. Whenever we receive the income, we should pay ourselves first. Saving comes first. We should pay ourselves and put the money into an untouchable account (pay myself account). Whatever left over, I then to decide what to pay.

+ INCOME

+ SAVING

- EXPENSES

This is what we called the one degree tweak (one degree difference). You will discover two interesting points after you diligently exercise “pay yourself first”.

Point 1: You will have a sizeable saving in your so called asset account. The money here is able for you to start to deploy at assets. (Asset is anything that generates cash flow).

Point 2: You will form a long term habit in your spending. Once you pay yourself first, you will decide carefully how to spend your remaining, how to stretch your dollars and once you survive, it forms a habit.

Please teach this to your children.

We will use the money in the untouchable account on assets. Once the assets generates cash flow, we deploy the” pay yourself first” rules again and it will become a very powerful compounding machine.

Of course, if you do not know how to invest in the right assets, you also will loss money, that is why you must know how to manage the assets well, then the trainer goes on to invite you to attend his workshop on how to manage the assets, called Value Growth workshop.

 That’ is it.

All right, below are my comments.

As a trainer, you always need to come up with new ideology so that people are attracted at first glance. I am not against it but most of us are already doing it without our notice. It is a nice idea actually. I will teach that to my kid, simply because it sounds logic and it sounds cool too.

Take myself as an example, when I started to work in Singapore, my salary is as well close to S$3,000 per month and yet I have also exercised “pay myself first” concept. When the salary was banked into my saving account, immediately the incomes are automatically deducted (GIRO) to pay my “savings”, which is Investment Linked plan (ILP), Endowment plan (EP) and Whole Life plan (WLP). (For me, I treated these three instruments as my long term saving plan). I have been paying these 3 plans since year 2004. All right, of course, there is argument on how much returns are these plans are worth after 50 years, etc. But that’s not the discussion here. At least I am doing the savings part too!

I also started to pay myself even more 4 years ago by contributing additional S$7,000 into CPF SA account as well as S$15,300 into SRS account (to buy blue chip stocks that generates dividends and good growth). Both attract a sizeable amount of tax savings plus savings with good interest for SA account (4% to 5%).

So literally, my flow would be:

+ INCOME

+ SAVING (ILP, EP, WLP)

+ SAVING (CPF SA)

+ SAVING (SA)

- EXPENSES

+ SAVING (remaining)

Now here comes the interesting part.

1. How to manage the savings in the untouchable account that the trainer is talking about?
    
2. What assets are we choosing?

It can’t run away from stocks (that includes ETF, REITS, warrants etc.), real estate properties (be it Singapore, Malaysia, Australia, UK, etc.), bonds (fixed income assets), GOLD, oil commodities index, etc. And I am sure experts are digging into each asset and tell you how to select the best among the best.

But, life is not always about me, myself and I.

I would like to share one of the revelation I have in recent years. I know you are here for financial information but probably, this is the most important blog that you must read in your life. I started my tithing journey on November 30, 2014. If you do not have revelation, don’t tithe.


Tithing simply means take 10% of our income and give to our mighty God as 100% of ours are from God anyway, don’t you think so?


Offer our 10% to our God and He will sanctify the rest of our money (90%). Our God is faithful and He knows how to give us the best, not only in the heaven but on the earth as well. I am not here to preach you gospel but I am sharing my revelation to you. If you want to know more about it, you should visit our lovely church at the Star, Buana Vista.

 So, my sequence is actually looks like this. It is called, “Pay Jesus First”.

+ INCOME

- JESUS (10%)

+ SAVING (ILP, EP, WLP)

+ SAVING (CPF SA)

+ SAVING (SA)

- EXPENSES

+ SAVING (remaining)

I am more than happy to share more breakthroughs in my life (if any, ha ha..) in the many “revisions” to come and I am anticipating it too! May all the glories go to the mighty one, our lovely God !

“Bring all the tithes into the storehouse, that there may be food in My house, and try Me now in this, “ says the Lord of hosts, “If I will not open for you the windows of heaven and pour out for you such blessing that there will not be room enough to receive it.” Malachi 3:10.