How to Fix PAP failed policies
1) Increase Capital gain tax for properties to 30%-50% max, where as long as you make profits you must pay taxes to deter speculators, where the cooling measures introduced at present will effectively kill the economy, causing a technical recession.
2) Lower property tax for 1st home, subsequent homes will be taxed higher
3) Increase Consumption Tax to 10%(GST)
4) Revised COE to Pay-as-you-use. Use GPS to track usage and automatic charging, average vehicle will be charged between $800-$1200 per month, luxury cars about $1600-1800, those in business(goods) will be charged even lower. COE for existing cars will run it’s course until expiration but they need to install GPS devices for entry to ERP areas. ARF will still remain but no COE anymore.
5) Lower Healthcare costs by using insurance as a tool. Separate the business of giving advice from dispensing medication to prevent the salesman benefiting too much monopoly, let the customer decide what type of medication to buy, doctors will only give prescription.
6) Implement minimum wages with productivity gains, make CPF contributions compulsary for both Singaporeans and foreigners. Certain groups like maids/contruction workers will be paid 50% CPF based on their wages, which they can use for healthcare/insurance in Singapore and withdraw when they leave Singapore when their contracts ends, but it will not be in cash, and they need to deposit into their own country for their retirement fund. This indirectly create a huge foreign base of temporary workers who will be willing to work in those jobs that Singaporean do not want, no need a quota system.
7) Planning of Land use until 2030 is too complicated and will take too much of my time, do not expect free service, especially for HDB, URA, MRT to accurately match demand and supply until 2030 where affordability and population growth is a concern.
8) How to grow GDP at maximum speed with limited resources, bring everybody out of poverty. The industries to expand. New Economy education for each industry and balancing inflation at 2%-3% growth for capital gain. Creating a domestic market for demand and supply. Without solving all the problems, it is impossible to have 6.9 million people by 2030.
9) To have affordable homes and bridge the income gap, HDB must build on top of 4rm/5rm flats, 2rm/3rm flats and make the smaller flats heavily subsidised with more grants for the smallest 2rm at $100K, 3rm at $150K etc in new towns where land costs is cheap, so that there is a capital gain of about 100% after 5 years, indirectly creating wealth to the low income where the capital gain tax will be lowered and only 2 entitlements for new flats for singaporeans singles/divorcees and small families.
10)In the New Economy with slower growth, Singapore’s model cannot depend on the public for huge surplus anymore, most important is to use property/cars as the most expensive and lower the costs for everything else to balance the budget with a surplus. Governments must find ways to leverage on incomes from innovations, productivity and technology increases and invest in R & D so that resources and capital is maximised.
– Contributed by Oogle.