SINGAPORE NEWS -- WEEKS OF 7 JUL AND 14 JUL 2003

Contents:

1)    As we know, Singapore has banned chewing gum products, but why are some people still chew gums?

2)    Helpful tips on financial planning.

3)    Entrepreneurship in Singapore starts at secondary schools!

Check them out...

Singapore Government Press Release
Media Relations Division, Ministry Of Information, Communications And The Arts,

Importation And Sale Of Chewing Gum With Therapeutic Value Under The Us-Singapore Free Trade Agreement

Under the US-Singapore Free Trade Agreement (USSFTA), Singapore agreed to allow the importation of chewing gum with therapeutic value for sale and supply, and may subject such products to laws and regulations relating to health products. The provision is not intended to overturn the ban on chewing gum.

Subsequently, Wrigley applied for some of their products… Orbit and Orbit White can be sold by pharmacists over the counter, subject to the condition that buyers’ particulars are recorded. Orbit (containing calcium lactate and xylitol) is a dental hygiene product, while Orbit White (containing sodium hexametaphosphate) is a tooth whitening product.  In particular, the packaging and advertising for both products must pertain only to therapeutic, not recreational use, and must match the approved claims. Advertisements will require a permit from health regulatory authorities.

To prevent gum litter from becoming a serious problem again, Singapore will be introducing stiffer penalties for littering involving the indiscriminate disposal of used gum.

Keynote Address By Mr Tharman Shanmugaratnam, Senior Minister Of State For Trade And Industry And Education At The Inaugural Malay Financial Planning Conference 2003, With The Theme: "Money For Life", Raffles City Convention Centre, Sat, 12 July 2003, 10.30am.

Providing For The Future - Everyone’s Responsibility

Financial Planning is a key life skill. It is a basic responsibility of every citizen, and every family. It has also become all the more important in a new economic era of frequent change

 - an era of ups and downs. It is an era of heightened risks as well as opportunities. Of reduced job security and more frequent changes in employment, but also opportunities for personal growth and wealth.

But financial planning is not relevant only to those who are about to retire. It has to begin early in everyone’s working life. Looking to future needs, controlling present consumption, and setting aside savings for events we cannot anticipate. There are therefore two key priorities in strengthening financial habits amongst Singaporeans.

Better Management of Household Finances

First, to inculcate the basic discipline of looking to the future, in managing our household finances. This involves prioritising expenditures, and ensuring that money is put aside whenever possible to meet future needs.

I have come across several cases myself of young couples that overspend on their wedding celebrations, or subsequently spend on lavish furniture when they start a new home. Having depended on their parents until then, … they overdo their initial spending and run into difficulty before long. Worse still, their marriages are sometimes put at risk when their financial problems start to unfold.

Many families also end up in distress because they spend on credit. Some borrow from numerous banks, using credit cards, overdrafts and term loans. They do not realise the problems that they are piling up for themselves until the breadwinner loses his job or takes a pay cut, or a family member is found to have an illness and their expenditures rise, and they get into problems with the banks.

Prioritising expenditures is perhaps the most basic financial discipline that we have to inculcate in every family.

Prudent Investments To Enhance Your Savings

The second priority is to equip Singaporeans with the skills to manage their savings well, so that they earn a good return at acceptable risk. Prudent investment of savings is a key way of growing our retirement nesteggs.

For those with little savings, it is important to promote a conservative, low risk investment strategy. And for those with enough savings to consider more than just a deposit in the bank, a fundamental principle is to diversify our investments and avoid putting all our savings in one or two baskets. Very few investors succeed on instinct alone. Before taking on new investments, it is important to obtain proper information first, on the nature of the investment products and the risks they pose. Investors should also take a longer-term view on investments and avoid a "get-rich-quick" strategy. It rarely works. Making investments without a sound understanding of the risks involved, and not considering whether the product is suitable for you, often means ending up in distress.

For individuals who are not sure about their investment choices, it pays to speak to a professional Financial Adviser. The introduction of the Financial Advisers’ Act (FAA)… bring about significant benefits for consumers. For a start, the FAA sets minimum entry and examination requirements for persons intending to provide financial advisory services. Financial advisers and their representatives must also have a reasonable basis for the recommendations that they make, and ensure that they take into account the investors’ investment objectives, financial situation and personal needs when recommending an investment product. They are also required to disclose material information to consumers, including the risks of the product, the representatives’ status and the fees received by the financial adviser.

Expanding Financial Education

Ultimately, the investor makes his own judgement, chooses for himself, and takes responsibility for his own decisions. That is why we must pay more attention to financial education. In some of the developed countries, financial consumers have access to a wide range of financial magazines and educational resources to keep themselves informed of trends and issues impacting them. … ensuring that more Singaporeans are aware of what to look out for in financial investments, how to avoid financial scams, how to avoid getting into excessive debt.

Speech By Minister Of State For Foreign Affairs And Trade & Industry And Minister Of State In Charge Of Entrepreneurship, Raymond Lim - First Bluesky Evening, 11 July 2003, 8 Pm, At Qian Hu Corporation Limited

… we launched ACE or the Action Community for Entrepreneurship on 26 May.

But what is even more significant is that entrepreneurship is increasingly becoming part of our public consciousness. I was recently struck by this realisation when I officially opened a secondary school in Bedok. Even though Bedok Green Secondary is such a new school, in its handbook highlighting the school’s achievements there was a section on the young entrepreneurs of the school that had taken part in Southeast CDC’s "Breakthrough" programme on entrepreneurship for students.

What is encouraging is that more and more schools are now paying greater attention to promoting the spirit of enterprise among our students. For example, the Young Entrepreneurship Programme in Parry Primary School provides students with the opportunity to sell red packets online through their e-tailing portal with the profits contributed to charity. In Temasek Secondary School, each class is armed with training in basic business skills and start-up capital of $100 and takes turns to set up businesses in the canteen for one week, with the proceeds used to help needy students. Pupils in Kranji Secondary School operate and manage ITC.com, which offers IT services to the school for a fee.

Many of you may also have heard of the BizWorld programme, which teaches students between the ages of 10 and 14 about business concepts and enhances their understanding of entrepreneurship. I recently learnt that after EDB helped to launch the programme in a few schools in 2002, Draper Fisher Jurvetson went on to hire full-time staff to administer and market this programme. Teachers from over 70 schools have been trained, and about 4000 students have benefited from this programme so far.

More recently, I was at the NTU Technopreneurship Centre and there I was told that half of the 49 graduates from the inaugural batch of the Technopreneurship and Innovation Programme had gone on to start up their own businesses.

Entrepreneurship groups are sprouting up and include the Young Entrepreneurs’ Organisation whose members are under 40 and head up companies generating annual revenues of over $1 million; the Innovators and Entrepreneurs Association (IdEA) which focuses on start-ups and the newly formed Hometeam NS Entrepreneur Club that aims to help NS men to start up their own businesses.

Last Friday, the Urban Redevelopment Authority announced lower charges and shorter online processing time for businesses who wish to change their trades or alter their business premises. The fee reductions ranged from $200 to $1,400, and online approvals will take two weeks instead of four weeks. These changes will lead to cost savings as well as greater flexibility for businesses.

Our thanks also go to Hong Leong Finance, United Overseas Bank Group, DBS Bank, OCBC Bank and the Hong Kong and Shanghai Banking Corporation for their generous contributions in support of today’s launch of our BlueSky Evenings. CityNeon, our event management company, Satay Club, and Qian Hu have also supported today’s event. Last but not least, we would like to thank Kenny Yap for hosting this event at his farm, allowing us this opportunity to enjoy the great outdoors today. These are all examples of private sector involvement in promoting entrepreneurship.