Saturday, January 29, 2011

Income Tax - Singapore vs Canada

In his 1996 National Day speech, then Prime Minister Goh said, “People often want the government to assume the full burden of the cost of medical care and provide treatment free to Singaporeans. Because of the painful lessons learned in other countries we have not done this. All the countries which have done this—Britain, France, Germany, Canada, and Communist China—have failed. Their systems break down as people overuse so-called ‘free’ health care, which they actually pay for indirectly through higher taxes. Their health services deteriorate. Waste and inefficiency become endemic. Now these countries are forced to cut back on services, introduce cost controls, and reform the system.

This is the biggest lie that Singapore leaders have repeatedly spin about Universal Healthcare.
Canadians are proud of the country's healthcare system. It has been functioning well for decades with no signs of failing. The notion that Singaporeans pay one of the lowest tax in the world is a myth to fool Singaporeans. In reality Singaporeans pay much higher taxes than other developed countries like Canada.

Consider a person making $6,000 a month in Singapore and a person making a similar amount in Canada. Let us say the person in Singapore pays zero tax and the person in Canada pays his maximum without any deduction of 29.7% tax. Assuming both have a working life of 40 years and a life span of 85 years.

The person in Singapore pays nothing since we assumed his tax to be zero.
The person in Canada would have to pay based on annual salary of $72,000 at 29.7% = $21,384. Based on a working period of 40 years the Canadian would have to pay a total of $855,360. It should be less if deductions are taken into consideration but we give the advantage to Singapore to minimize arguments. The Canadian tax does seem high to Singaporeans. However when all the cleverly hidden taxes are taken in consideration, Singaporeans are paying more in taxes but not getting the social benefits enjoy by Canadians.

List of Singapore hidden taxes that Canadians do not pay::

1. COE - $60,000 every ten years assuming that a Singaporean changes his car every 10 years.
40 years needs to buy 4 COE = $240 ,000.
2. Cost of car like Honda Civic - $75,000 in Singapore vs $25,000 in Canada.
4 cars in forty years at the difference of $50,000 = $200,000
3. Road tax - $1,300 per year for 40 years = $52,000
4. Higher petrol price - $100 extra a month for 40 years = $48,000.
5. ERP - $100 extra a month for 40 years = $48,000.
6. Maid levy - $300 per month for 20 years (assuming a family only has the maid for 20 years
instead of 40 years or more) = $72,000.
7. General medical bills for 85 years at $1,000 a year = $85,000. (less than $100 a month)
8. Cost of housing, the difference between a similar house in Singapore vs Canada is $300,000 to as high as $1 million and more. We shall take the lower end of the difference = $300,000.
9. The water/gas/electricity bills are only one-third of Singapore’s making a savings of at least $102,000 based on a saving of $100 per month x 85 years.
The total savings for a Canadian is at least $1,147,000 or more depending on how many cars, maids and children he has.
This amount is more than adequate to offset the Canadian tax of $855,360 at 29.7%.

In addition the following is a list of social benefits that Singaporeans do not enjoy::

1. “Milk money” of $250 each child receive a month from the government from the day the child was born until age of 18 years - $250 x12 x 18 years = $54,000 for one kid. Two kids = $108,000.
2. Old age pension plus assisted income for retirees without any income, a retiree gets $1,250 or more a month until death. Assuming the retiree lives for 20 years = $300,000.
A couple could get a combined retirement income of $2,500 a month. even though they may not have been working. The total receivable for 20 years would be $600,000.
3. Retirees travel for free on all public transportation with limited black out time on weekends, i.e. trains, buses, ferries. Some of the ferry rides cost more than $100 per trip. Assuming a retiree saves $150 a month for transportation - 20 years of retirement = $150 x 12 x 20 = $36,000.
4. Retirees can study in universities for a token fee of less than $100 per year.
5. Unemployment insurance which a citizen can claim when he/she is out of a job. It is common for a person to be out of job for 6 months in his 40 years of working life - $36,000.
6. Free treatment of severe illness like cancel, liver or kidney failures - $200,000 or more.

Depending on the choice of lifestyles and individual health conditions, the Canadian tax system has an advantage of between $500,000 to over $1 million when compared with the Singapore tax system even though Singapore tax rate is low.

It is common knowledge that an average Singaporean cannot afford to get sick because the medical bills would bankrupt his/her entire savings. This should never happen to the richest country in the world!!!

In Canada,  Healthcare service providers will do their best to guide and help patients without asking for payment as all citizens and permanent residents are covered by the government. 
In Singapore, it is the opposite, the service providers will make sure that potential patients can pay for their services or treatments. It is typical "kiasu" Singapore culture.

The moral of the story is that we should not be fooled by statistics and world rankings. Singapore is ranked the richest country in the world with the highest per capita  vs Canada at eleventh place with a lower per capita of $39,033. Do Singaporeans really feel richer  when most Singaporeans have constant anxiety over inadequate savings for retirement, medical bills, being homeless, etc.

Most Canadians enjoy their retirement with peace of mind of having Universal Healthcare and retirement benefits.  Canadians can walk into clinics or hospitals without any money in their pockets and be treated.  On the other hand Singaporeans must have adequate funds before they step into clinics or hospitals.

Wing Lee Cheong
Vancouver, BC.

Singapore government's style of transparency!

Life in Singapore - Utopia or Dystopia

Life in Singapore - Utopia or Dystopia.

Singapore possessed an endless string of world rankings and claims, i.e.

1. “The happiest place in Asia.”
2. One of the best welfare system in the world.
3. One of the best health care system in the world.
4. One of the best education system in the world.
5. One of the lowest income tax in the world.
6. The most efficient and honest government in the world.

The list goes on and on and on. The country is obsessed with world rankings and claims.
Most observers and visitors to Singapore are stunned but impressed by such a vast display of world rankings and claims.

Is Singapore such an Utopia as claimed? The answer is probably YES from about 10% of the population comprising of the multi-million dollars highest paid ministers in the world, the highest paid public civil servants in the world, the high salaried expatriates, the successful businessmen, the rich and famous, tourists and short term visitors.

These are the elite who can afford to pay $5 million to $30 million for a house and has no hesitation disclosing to the media that they spent $20,000 for a few days of French cooking lessons in Paris or spent $40,000 a year sending their two and three years old children to “baby gym” and “baby motivational” classes or post on Internet that the “poor should get out of her elite uncaring face.”

For this privileged caste, Singapore is indeed fantasy-land. It is a fun city with world class casinos, streets of bars, pubs and karaoke clubs, great restaurants of all cultures, theaters, 5 stars hotels, plenty of young and inexpensive social escorts and prostitutes from China, Philippines and neighboring countries. Prof Tommy Koh, former ambassador to UN, was reported that he entertained western ambassadors and consulate staff for “fun-filled” evenings. He preferred the Filipino girls in Orchard Towers over those in Duxton as those girls were “cheap and low quality”. The homes of these elites are well maintained by the services of cheap maids and they live like royalties.

For the remaining population, few would consider Singapore a fun city, let alone “the happiest place in Asia”. There is a small percentage within this remaining population who are in the “comfort zone” and contend with status quo where they could enjoy occasional touches of happy moments. These are people in the senior management positions, senior civil servants, senior military and police officers, relatively successful businessmen who are able to buy cars, private condominiums, the cheaper end of private houses or in worst case, the executive or 5-room HDB apartments. They have maids and take overseas vacations and enjoy some luxuries of elite lifestyle.

For majority of population, life is tough having to work 12 hours a day for both husbands and wives to pay off the mortgages for their 99 years lease HDB homes and 10 years lease cars, pay for children tuition and make ends meet. If Singapore is a fun city, most of them are simply too busy to feel happy or enjoy the luxuries of life. Singapore’s workforce has the reputation of having the longest working hours a day in the world.

How did Singapore with all the world ranking and claims deteriorate to such a pathetic state where the majority of common citizens are depressed, oppressed, stressed and agitated resulting in increased divorces, violence and suicides?

The Hard Truths are the fear of losing their current jobs and difficulties in finding new jobs, the raising cost of living, the anxiety of inadequate CPF for retirement, the lack of affordable health care, the fear of being homeless and the lack of welfare for seniors. In this meritocratic society, the handicaps, weak and the old are expendable and left to the care of their families. The State has in place laws for parents to sue their own children for financial support. The government does not want to waste its resources on the expendable. Singapore has an inexorable policy of survival of the fittest. Those citizens classified as underachievers or a burden will be sidelined and be left to rot.

Singapore leaders have a despicable habit of mocking other countries’ welfare systems to champion their own. In his 1996 National Day speech, then Prime Minister Goh said “People often want the government to assume the full burden of the cost of medical care and provide treatment free to Singaporeans. Because of the painful lessons learned in other countries we have not done this. All the countries which have done this—Britain, France, Germany, Canada, and Communist China—have failed. “

Contrary to SM Goh’s bold prediction 15 years ago, Canada’s welfare and health care systems are still firmly in place with high approval rating by the government and public. On the other hand, despite its world ranking, Singapore’s own welfare and health care systems have deteriorated to an extend that it is considered a mockery by its citizens. The joke amongst the citizens is that you can afford to die but cannot afford to get sick or old. All government hospitals have been converted to profit based private enterprises. There are no longer free medical care. Citizens have to pay for all medical services and medications with limited subsidies.

Singapore may rank better in the world by WHO but in reality Canada has a much better system. For example:

Case No. 1 - I am a kidney transplant patient who has gone through 5 years of dialysis before the transplant. The medical cost for the 5 years of dialysis, the transplant operation, the ICU and general hospitalization, the post transplant medication for the rest of my life are FREE. I did not pay a cent other than paying for the national health insurance that amounts to about $50 a month per person.

A patient in Singapore would have to cough between $200,000 to $300,000 from his/her medisave or beg for help from relatives and friends to pay the medical bills. One serious illness would effectively wiped out a giant portion of a person’s pension fund.

When I was unable to drive to hospital for dialysis, special handicap bus was arranged to pick me up at my residence and send me to and from hospital. All I have to pay was C$2.50 per trip.

I was paralyzed from neck down when I discharged from ICU. The Canadian health system has rehab program to enable me to participate in international dragon boat races. All my dialysis and medical treatments during overseas competitions were reimbursed. In 2008, I managed to win a Gold Medal in the San Francisco International Dragon Boat Race against normal healthy competitors under the Recreational Category.

In a callous society like Singapore, most end stage kidney failure patients would be left on their own or rely on the help of relatives and friends for rehabilitation. Those patients who managed to walk independently would consider themselves fortunate. None would dare hope for the government to provide training or pay for participation in international competitions.

Case No. 2 - An ex-Singaporean has tunnel or straight eye vision but the doctor did nothing in treating her when she was working in Singapore. When she immigrated to Canada, her family doctor discovered her eye defect and sent her to an eye specialist. She was diagnosed as “legally blind” and classified as a handicap person. Health care workers were dispatched to her work place to check if the environment is friendly and prevent her from hurting herself. As a handicap, she cannot be fired because of her medical condition. All these services and medical treatments were free under the Canadian Health care.

A ludicrous incident happened when this lady returned to Singapore for a visit. An ignorant immigration officer confiscated her blind person walking cane as he regarded it as a dangerous weapon. She tried to explain to him that she was legally blind but the immigration officer told her that as long as she can see, she is NOT blind. He thought she was faking to take advantage. Not much of a testimony for a 1st world country.

Case No. 3 - Mr. Bernard Chan, an ex-Singaporean and YPAP promising member, has a special needs daughter that cost him thousands of dollars a month to be looked after when they were living in Singapore. When they immigrated to Canada, his daughter was immediately placed with 7 other special needs kids and taken care of by a full-time teacher, an assistant and watch over by a nurse and a specialist. All these services for FREE. He need not pay a cent. It is all covered by Canadian health care system.
Fast forward. On reaching 18 years, his daughter was given a monthly inflation-indexed allowance of Sin $1,500 (C$1+S$1.3), free medical and drugs, free dentistry and glasses (Sin $ 400 every 2 yrs). She can enroll for all kinds of studies and even dance, swim or social dance ... all paid for FREE. Monthly bus is half price at Sin$45 per month ...unlimited bus and train travel. The social services even got her a part-time job doing packing to build up her self-esteem and she cannot be fired because of her medical condition.

Case No 4. Senior citizens living alone have regular visits by social workers to ensure that their meals are cooked, clothing and homes kept clean. They are given regular medical checkups. Again all these services are free under Canadian health care.

Examples can go on and on. It is puzzling how Singapore was ranked 6th best health care in the world by WHO versus Canada at 30th ranking when it fail to provide these basic compassionate services.

DPM Wong Kan Seng, on Jan 17, 2011, said, “We will not leave behind those who need more help. The surpluses we have set aside in good times can be tapped on to look after the needs of the old and poor. We will continue to enjoy quality education, healthcare, transport and other social infrastructure.”

Do Singaporeans still believe all these political rhetoric and empty promises? Do they really feel better off than Canadians? Canada may not have the best health care or welfare systems in the world but as Canadians we are proud of our health and welfare systems. Its policies are compassionate and fair to all citizens. We are motivated to die for Canada without hesitation.

On the other hand, Singapore health care and welfare systems are designed for selected elite. For example, when Mrs Lee was ill in London, a 747 jumbo plane was converted into an air ambulance within 24 hours to fly her back to Singapore. MM Lee boosted that it was a world record that could only be achieved by Singapore. Do the leaders spare a minute to care for the sick, weak, elderly and homeless to score another world record? In MM Lee's latest book, "Hard Truths to keep Singapore going", MM Lee challenged citizens to die for each other. For a statesman who prided himself as vision extraordinaire, MM Lee should easily forecast that it would be difficult to motivate citizens to die for the country that is run like a circus by ministers drawing obscene high salaries with no accountability, no apology, no responsibility, no transparency and no shame.

In 1991, Prime Minister Goh promised Singaporeans that Singapore will achieve "Swiss standard of living" within a decade. Now, twenty years later Singapore's standard of living is more like Russia than Switzerland.

"In a country well governed, poverty is something to be ashamed of. In a country badly governed, wealth is something to be ashamed of."
— Confucius

Wing Lee Cheong
North Vancouver, BC,Canada