The Singapore Experience revealed through five acronyms!

Hi there! Imran here with a brief 'hello' from sunny (and often rainy) Singapore! 

Greetings from Singapore! It's your friendly host from the Little Red Dot (aka Singapore) with the latest edition of my newsletter.* Any traveler to Singapore will likely come across a dazzling array of acronyms while in the city-state. There is nothing Singaporeans love more than shortening phrases or names. Indeed, one website listed over 100 abbreviations in use across Singapore – and that was before the spate of pandemic related abbreviations entered our daily lexicon. Many of these acronyms form such an integral part of a Singaporean's daily life that simply knowing their meaning reveals much about Singapore. Below I explain five such abbreviations which represent the Singapore experience.  1. CPF or Cenral Provident Fund Everyone worries about retirement finances, right? We all want to travel and pursue our long neglected dreams without a care for money! In Singapore, the CPF is key to a solid retirement plan. All employees and employers are required to contribute a percentage (twenty and seventeen percent respectively) into a CPF account maintained in their name. (Yup, that's a whopping 34 percent of an employee's income!) So what happens to this money? This money can be invested and / or used to pay monthly instalments on mortgages taken out to purchase HDB flats (see HDB) or private condominiums. However, these monies cannot be accessed by us until we reach the statutory retirement age. Moreover, the quantum of withdrawals from a CPF account is controlled. This stops me from withdrawing all my money saved over the years in one go and heading over to the casino to try and double my retirement sum! Given the recent volatility in international financial markets, many Singaporeans now quip that the CPF is the safest place for one's savings as even account holders can't access their funds at will.  2. HDB or Housing and Development Board HDB, which was established back in 1960, constructs all – yes, all - public housing apartment blocks in Singapore. Public housing is a big deal in Singapore as over 80 percent of Singaporeans reside in owner occupied HDB apartments! Consequently, HDB apartment blocks are everywhere. You can't miss them. Take the subway (see MRT) virtually anywhere and as soon as you exit the station you will be greeted by HDB apartment buidings nearby! Singapore's public housing is different from such housing in many other parts of the world. It's high quality and suffers few of the usual issues of crime, neglect, etc. traditionally associated with public housing. Additionally, HDB apartments are individually owned – not owned by the city or state - for a 99 year lease period. Residents of HDB apartments cut across economic, ethnic and religious lines. Indeed, there is a conscious effort to integrate different ethncities in HDB estates via an Ethnic Integration Policy. Sidenote: The current President, Madam Halimah Yacob, expressed a wish to live in her HDB apartment after her election to the President's office. However, she grudgingly agreed to move to an alternate residence after a detailed assessment by government agencies recommended she move for security reasons. 3. MRT or Mass Rapid Transit No city can prosper without an efficient public transport system. Singapore's subway network, the MRT system, is the backbone of the city's transport network. Inaugurated in 1987 with a handful of stations, the system has grown to over 130 stations on 200 kilometers of track (and still growing). Today, Singapore's MRT system logs more than three millions trips daily. Not surprising in a city where a regular family car costs almost USD 100,000/- (see COE)! Be warned there is no eating or drinking (not even water) permitted on MRT trains. What's more, in case you were planning to transport durians – that smelly tropical fruit – on the train be prepared to pay a fine as durians are not allowed on MRT trains! 4. COE or Certificate of Entitlement In Singapore, you can't just walk into a dealership and buy a car ... at least not technically. Anyone who wishes to register a new vehicle in Singapore must first obtain a Certificate of Entitlement (COE). A COE represents the right to own a vehicle and use Singapore's roads for 10 years. In March 2022 a COE for a 1,600 cc car sold for USD 52,500. For a car above 1,600 cc it cost USD 72,500! One study estimates the net cost of purchasing a standard Toyota Corolla Altis (1,600 cc) at USD 91,000/- today (yes, you read that right: almost one hundrend grand for a Corolla Altis!). COEs are made available through public electronic auctions twice each month. Once a buyer has a COE on hand then she may proceed to purchase a car. In other words, a car buyer first bids and obtains a COE, then purchases a car which is linked to the COE for the next ten years. Subsequently, the buyer pays for additional items like road tax, insurance and road tolls on an ongoing basis. As a result of these high costs, car ownership levels in Singapore are low relative to other wealthy nations. Recent estimates suggest about two thirds of households do not own a car. Sidenote: My own back of the envelope calculation suggests it's cheaper to take an Uber everywhere versus owning a car! 5. GST or Goods and Services Tax After corporate and personal income taxes, GST is the third largest source of revenue for the government. What is the GST? Well, the GST is a value added tax levied on all goods and services supplied in Singapore; and also on all goods imported into Singapore. GST is an indirect tax and is currently charged at a rate of seven percent (expected to increase to eight percent in 2023). Singapore runs a tight ship insofar as public finances are concerned. The city-state is assigned the highest 'AAA' rating by ratings agencies like Moody's, S & P, etc. Hardly surprising, given Singapore's two sovereign wealth funds - GIC and Temasek – have a combined asset base of almost USD 1.1 trillion. Pretty impressive for a city-state without any natural resources like oil, gas or mineral wealth! Sidenote: Tourists can obtain a GST refund on big ticket purchases made during their stay in Singapore. Travelers may obtain their refunds at Changi airport at the time of departure. In Singapore, acronyms are like stock tickers: we have so many that it's hard to keep track of them all. Through this selection of five acronyms we've covered important areas such as housing, money, transport and taxation. I was going to add a couple of pandemic specific acronyms like SMM (Safe Management Measures) and ART (Antigen Rapid Test) but this newsletter already felt a bit overloaded and we hear enough about the pandemic elsewhere! And that's the story of Singapore told through five abbreviations. If you still want more information then it's time to book a virtual tour ... or better yet, pay us a visit in Singapore!   Imran May 2022 Book a Virtual or Physical Tour of Singapore To book a customized virtual or physical tour of Singapore please contact me by email (imran.ahmed.sg@gmail.com); WhatsApp (+65 9786 7210); Instagram (@singapore.locally) or Facebook (@singaporelocally). Additionally, you may book my Sights and sounds of Singapore's Little India: from Hindu temples to UNESCO recognized street food and Singapore's old Chinatown: the story of a church, a mosque, a temple and Michelin starred street food virtual tours through Amazon Explore. Please feel free to forward this newsletter to interested persons.  PS – You may visit earlier editions of my newsletter here. * You are receiving my newsletter as you have either been on a tour with me (earlier this century) or we are connected via LinkedIn. If this intrusion is not to your liking, fair enough, it is easy for you to unsubscribe. Simply use the unsubscribe button in the footer of this email. Singapore: the story of a church, a mosque, a temple & Michelin starred street food in old Chinatown   Though ethnic Chinese comprise almost three quarters of Singapore's population, the city-state is religiously and ethnically diverse, and this live tour along the Street of Harmony, Telok Ayer Street, is a great way to see Singapore's multiculturalism.  Along the route we'll also see a street food hawker center and colorful shophouse architecture. Book now» Sights and sounds of Singapore's Little India: from Hindu temples to UNESCO recognized street food   Singapore's Indian community - though small in numbers - is an integral part of Singapore's food, culture and architectural landscape. At the heart of the community is the Little India district where all this and more are on display. Join me as we stroll through the streets and side lanes of Little India and take in the sights and sounds (not the aromas!) of this vibrant district. Book now» Facebook Instagram YouTube LinkedIn Copyright © 2021 Singapore Locally La, All rights reserved. You are receiving this email because you opted in via our website. Our mailing address is: Singapore Locally La 363 B Sembawang Crescent #03-727 Sun Natura Singapore 752363 Singapore Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.