Tuesday, November 03, 2009

Coach Operators Fined $1.7m for price fixing


Nov 3, 2009 (Straits Times)

By Maria Almenoar

SIXTEEN coach operators and their association have been fined $1.69 million by the Competition Commission of Singapore (CCS) for fixing the prices of express bus tickets to Malaysia.

They were found to have set a minimum price for tickets and agreed on prices for a fuel and insurance charge (FIC) to the tickets between 2006 and June last year.

HOW 17 FIXED PRICES OF COACH TICKETS
Investigations by the Competition Commission of Singapore revealed that the coach operators met regularly with the Express Bus Agencies Association to fix:
  • Minimum selling prices of the coach tickets. As a result, these coach operators adjusted ticket prices to either at or above the minimum level, resulting in higher ticket prices
  • Fuel and insurance charges (FIC) across the board to mark up ticket prices. The charges were revised upwards on various occasions after they were implemented.

During this period, it is estimated that the coach operators pocketed over $3.65 million from the sale of the FIC. The 17 fined are:

  1. Alisan $10,807
  2. Express Bus Agencies Association $10,000
  3. Enjoy $23,425
  4. Five Stars $450,207
  5. GR Travel $52,432
  6. Grassland $27,706
  7. Gunung Raya $76,668
  8. Konsortium $337,635
  9. Lapan Lapan $10,000
  10. Luxury $10,000
  11. Nam Ho $10,000
  12. Regent Star $103,875
  13. Sri Maju $24,600
  14. T&L $10,000
  15. Transtar $518,167
  16. Travelzone $10,000
  17. WTS $13,611
These operators represent 60 per cent of the industry and are estimated to have earned $3.65 million from the surcharge imposed.

The penalties ranged from $10,000 to $518,167, with fines corresponding to the size of the companies. The fines were up to 3.85 per cent of the companies' turnover.

Mr Teo Eng Cheong, Chief Executive of CCS, said: 'Our investigations show clearly that the 16 companies and the association colluded to fix prices. Instead of stopping the collusion, the association facilitated the price fixing through its regular meetings and a rebate system to encourage the sale of FIC coupons.

'When faced with cost increases, businesses should aim to improve productivity or innovate so as to maintain their profitability without increasing prices. Instead, these coach operators took the easier path. They colluded to increase prices and passed on their costs to consumers. Consumers therefore bore the brunt of the cost increases.'

Last year, six pest companies were investigated and fined between $4,300 and $92,600 for bid-rigging.

Related links

Saturday, October 24, 2009

Life and How to Survive It

Below is a speech to the graduating class of 2008 at NTU convocation ceremony last week by Adrian Tan, a litigation lawyer and the author of The Teenage Textbook.

I must say thank you to the faculty and staff of the Wee Kim Wee School of Communication and Information for inviting me to give your convocation address. It's a wonderful honour and a privilege for me to speak here for ten minutes without fear of contradiction, defamation or retaliation. I say this as a Singaporean and more so as a husband.

My wife is a wonderful person and perfect in every way except one. She is the editor of a magazine. She corrects people for a living. She has honed her expert skills over a quarter of a century, mostly by practising at home during conversations between her and me.

On the other hand, I am a litigator. Essentially, I spend my day telling people how wrong they are. I make my living being disagreeable.

Nevertheless, there is perfect harmony in our matrimonial home. That is because when an editor and a litigator have an argument, the one who triumphs is always the wife.

And so I want to start by giving one piece of advice to the men: when you've already won her heart, you don't need to win every argument.

Marriage is considered one milestone of life. Some of you may already be married. Some of you may never be married. Some of you will be married. Some of you will enjoy the experience so much, you will be married many, many times. Good for you.

The next big milestone in your life is today: your graduation. The end of education. You're done learning.

You've probably been told the big lie that "Learning is a lifelong process" and that therefore you will continue studying and taking masters' degrees and doctorates and professorships and so on. You know the sort of people who tell you that? Teachers. Don't you think there is some measure of conflict of interest? They are in the business of learning, after all. Where would they be without you? They need you to be repeat customers.

The good news is that they're wrong.

The bad news is that you don't need further education because your entire life is over. It is gone. That may come as a shock to some of you. You're in your teens or early twenties. People may tell you that you will live to be 70, 80, 90 years old. That is your life expectancy.

I love that term: life expectancy. We all understand the term to mean the average life span of a group of people. But I'm here to talk about a bigger idea, which is what you expect from your life.

You may be very happy to know that Singapore is currently ranked as the country with the third highest life expectancy. We are behind Andorra and Japan, and tied with San Marino. It seems quite clear why people in those countries, and ours, live so long. We share one thing in common: our football teams are all hopeless. There's very little danger of any of our citizens having their pulses raised by watching us play in the World Cup. Spectators are more likely to be lulled into a gentle and restful nap.

Singaporeans have a life expectancy of 81.8 years. Singapore men live to an average of 79.21 years, while Singapore women live more than five years longer, probably to take into account the additional time they need to spend in the bathroom.

So here you are, in your twenties, thinking that you'll have another 40 years to go. Four decades in which to live long and prosper.

Bad news. Read the papers. There are people dropping dead when they're 50, 40, 30 years old. Or quite possibly just after finishing their convocation. They would be very disappointed that they didn't meet their life expectancy.

I'm here to tell you this. Forget about your life expectancy.

After all, it's calculated based on an average. And you never, ever want to expect being average.

Revisit those expectations. You might be looking forward to working, falling in love, marrying, raising a family. You are told that, as graduates, you should expect to find a job paying so much, where your hours are so much, where your responsibilities are so much.

That is what is expected of you. And if you live up to it, it will be an awful waste.

If you expect that, you will be limiting yourself. You will be living your life according to boundaries set by average people. I have nothing against average people. But no one should aspire to be them. And you don't need years of education by the best minds in Singapore to prepare you to be average.

What you should prepare for is mess. Life's a mess. You are not entitled to expect anything from it. Life is not fair. Everything does not balance out in the end. Life happens, and you have no control over it. Good and bad things happen to you day by day, hour by hour, moment by moment. Your degree is a poor armour against fate.

Don't expect anything. Erase all life expectancies. Just live. Your life is over as of today. At this point in time, you have grown as tall as you will ever be, you are physically the fittest you will ever be in your entire life and you are probably looking the best that you will ever look. This is as good as it gets. It is all downhill from here. Or up. No one knows.

What does this mean for you? It is good that your life is over.

Since your life is over, you are free. Let me tell you the many wonderful things that you can do when you are free.

The most important is this: do not work.

Work is anything that you are compelled to do. By its very nature, it is undesirable.

Work kills. The Japanese have a term "Karoshi", which means death from overwork. That's the most dramatic form of how work can kill. But it can also kill you in more subtle ways. If you work, then day by day, bit by bit, your soul is chipped away, disintegrating until there's nothing left. A rock has been ground into sand and dust.

There's a common misconception that work is necessary. You will meet people working at miserable jobs. They tell you they are "making a living". No, they're not. They're dying, frittering away their fast-extinguishing lives doing things which are, at best, meaningless and, at worst, harmful.

People will tell you that work ennobles you, that work lends you a certain dignity. Work makes you free. The slogan "Arbeit macht frei" was placed at the entrances to a number of Nazi concentration camps. Utter nonsense.

Do not waste the vast majority of your life doing something you hate so that you can spend the small remainder sliver of your life in modest comfort. You may never reach that end anyway.

Resist the temptation to get a job. Instead, play. Find something you enjoy doing. Do it. Over and over again. You will become good at it for two reasons: you like it, and you do it often. Soon, that will have value in itself.

I like arguing, and I love language. So, I became a litigator. I enjoy it and I would do it for free. If I didn't do that, I would've been in some other type of work that still involved writing fiction – probably a sports journalist.

So what should you do? You will find your own niche. I don't imagine you will need to look very hard. By this time in your life, you will have a very good idea of what you will want to do. In fact, I'll go further and say the ideal situation would be that you will not be able to stop yourself pursuing your passions. By this time you should know what your obsessions are. If you enjoy showing off your knowledge and feeling superior, you might become a teacher.

Find that pursuit that will energise you, consume you, become an obsession. Each day, you must rise with a restless enthusiasm. If you don't, you are working.

Most of you will end up in activities which involve communication. To those of you I have a second message: be wary of the truth. I'm not asking you to speak it, or write it, for there are times when it is dangerous or impossible to do those things. The truth has a great capacity to offend and injure, and you will find that the closer you are to someone, the more care you must take to disguise or even conceal the truth. Often, there is great virtue in being evasive, or equivocating. There is also great skill. Any child can blurt out the truth, without thought to the consequences. It takes great maturity to appreciate the value of silence.

In order to be wary of the truth, you must first know it. That requires great frankness to yourself. Never fool the person in the mirror.

I have told you that your life is over, that you should not work, and that you should avoid telling the truth. I now say this to you: be hated.

It's not as easy as it sounds. Do you know anyone who hates you? Yet every great figure who has contributed to the human race has been hated, not just by one person, but often by a great many. That hatred is so strong it has caused those great figures to be shunned, abused, murdered and in one famous instance, nailed to a cross.

One does not have to be evil to be hated. In fact, it's often the case that one is hated precisely because one is trying to do right by one's own convictions. It is far too easy to be liked, one merely has to be accommodating and hold no strong convictions. Then one will gravitate towards the centre and settle into the average. That cannot be your role. There are a great many bad people in the world, and if you are not offending them, you must be bad yourself. Popularity is a sure sign that you are doing something wrong.

The other side of the coin is this: fall in love.

I didn't say "be loved". That requires too much compromise. If one changes one's looks, personality and values, one can be loved by anyone.

Rather, I exhort you to love another human being. It may seem odd for me to tell you this. You may expect it to happen naturally, without deliberation. That is false. Modern society is anti-love. We've taken a microscope to everyone to bring out their flaws and shortcomings. It far easier to find a reason not to love someone, than otherwise. Rejection requires only one reason. Love requires complete acceptance. It is hard work – the only kind of work that I find palatable.

Loving someone has great benefits. There is admiration, learning, attraction and something which, for the want of a better word, we call happiness. In loving someone, we become inspired to better ourselves in every way. We learn the truth worthlessness of material things. We celebrate being human. Loving is good for the soul.

Loving someone is therefore very important, and it is also important to choose the right person. Despite popular culture, love doesn't happen by chance, at first sight, across a crowded dance floor. It grows slowly, sinking roots first before branching and blossoming. It is not a silly weed, but a mighty tree that weathers every storm.

You will find, that when you have someone to love, that the face is less important than the brain, and the body is less important than the heart.

You will also find that it is no great tragedy if your love is not reciprocated. You are not doing it to be loved back. Its value is to inspire you.

Finally, you will find that there is no half-measure when it comes to loving someone. You either don't, or you do with every cell in your body, completely and utterly, without reservation or apology. It consumes you, and you are reborn, all the better for it.

Don't work. Avoid telling the truth. Be hated. Love someone.

You're going to have a busy life. Thank goodness there's no life expectancy.

Tuesday, October 13, 2009

Project Work Oral Presentation - Tips and Some Great Presentations


Great Presentations



Great Speeches

Saturday, August 29, 2009

Singapore Budget 2009 - Measures to Address Income Inequality

Measures to help reduce income inequality (targetted at helping the needy families) + how to increase Singapore's competitiveness

The Emissions Trading System

Tuesday, August 04, 2009

On Liberalisation & De-regulation in Singapore

read an earlier post... click here

Includes:

- Definition: Privatisation, Deregulation and Liberalisation

- Market Liberalisation in Singapore
  • Telecommunications market
  • Electricity Retail Market
  • Singapore media market
  • Singapore's Gas Market
  • Commercial Banking Sector
  • Postal Services Market
click here

Monday, June 29, 2009

Small is the new big

from Seth Godin's blog

Big used to matter. Big meant economies of scale. (You never hear about “economies of tiny” do you?) People, usually guys, often ex-Marines, wanted to be CEO of a big company. The Fortune 500 is where people went to make… a fortune.

There was a good reason for this. Value was added in ways that big organizations were good at. Value was added with efficient manufacturing, widespread distribution and very large R&D staffs. Value came from hundreds of operators standing by and from nine-figure TV ad budgets. Value came from a huge sales force.

Of course, it’s not just big organizations that added value. Big planes were better than small ones, because they were faster and more efficient. Big buildings were better than small ones because they facilitated communications and used downtown land quite efficiently. Bigger computers could handle more simultaneous users, as well.

Get Big Fast was the motto for startups, because big companies can go public and get more access to capital and use that capital to get even bigger. Big accounting firms were the place to go to get audited if you were a big company, because a big accounting firm could be trusted. Big law firms were the place to find the right lawyer, because big law firms were a one-stop shop.

And then small happened.

Enron (big) got audited by Andersen (big) and failed (big.) The World Trade Center was a target. TV advertising is collapsing so fast you can hear it. American Airlines (big) is getting creamed by Jet Blue (think small). BoingBoing (four people) has a readership growing a hundred times faster than the New Yorker (hundreds of people).

Big computers are silly. They use lots of power and are not nearly as efficient as properly networked Dell boxes (at least that’s the way it works at Yahoo and Google). Big boom boxes are replaced by tiny ipod shuffles. (Yeah, I know big-screen tvs are the big thing. Can’t be right all the time).

I’m writing this on a laptop at a skateboard park… that added wifi for parents. Because they wanted to. It took them a few minutes and $50. No big meetings, corporate policies or feasibility studies. They just did it.

Today, little companies often make more money than big companies. Little churches grow faster than worldwide ones. Little jets are way faster (door to door) than big ones.

Today, Craigslist (18 employees) is the fourth most visited site according to some measures. They are partly owned by eBay (more than 4,000 employees) which hopes to stay in the same league, traffic-wise. They’re certainly not growing nearly as fast.

Small means the founder makes a far greater percentage of the customer interactions. Small means the founder is close to the decisions that matter and can make them, quickly.

Small is the new big because small gives you the flexibility to change the business model when your competition changes theirs.

Small means you can tell the truth on your blog.

Small means that you can answer email from your customers.

Small means that you will outsource the boring, low-impact stuff like manufacturing and shipping and billing and packing to others, while you keep the power because you invent the remarkable and tell stories to people who want to hear them.

A small law firm or accounting firm or ad agency is succeeding because they’re good, not because they’re big. So smart small companies are happy to hire them.

A small restaurant has an owner who greets you by name.

A small venture fund doesn’t have to fund big bad ideas in order to get capital doing work. They can make small investments in tiny companies with good (big) ideas.

A small church has a minister with the time to visit you in the hospital when you’re sick.

Is it better to be the head of Craigslist or the head of UPS?

Small is the new big only when the person running the small thinks big.

Don’t wait. Get small. Think big.

Monday, June 22, 2009

Cathay Pacific to launch major cost-cutting measures


Originally published on asia.businesstraveller.com 17/04/2009

Deteriorating business conditions have forced Cathay Pacific (CX) to reduce passenger capacity by 8 percent and overall cargo capacity by 11 percent starting May. Its sister airline Dragonair will also see a 13 percent cut in passenger capacity.

Simultaneously, CX is introducing a voluntary Special Leave programme for its 17,000 workforce worldwide, encouraging them to take unpaid leave between one and four weeks, depending on seniority. Other cost-cutting measures include deferring airport lounge renovations in Hongkong and London as well as deliveries of new aircraft, looking into whether or not to renew aircraft leases expiring, renegotiation with suppliers for more discounts.

Tony Tyler, CX chief executive, said these decisions were taken “after carefully considering all our options”. He added the paramount aim was “keeping our network and team together in this challenging environment”.

The staff, he believed, understood the rough patch their company was experiencing. He said: “One employee I met summed it up very well: ‘We are all in the same boat.’ What we’re trying to do now is to keep the boat afloat (while) sailing through the storm.”

In the first quarter of the year, the airline’s turnover was 22.4 percent lower than the same period in 2008. Tyler warned that if the recession worsened, CX would look at instituting other measures, but what these were, he declined to say.

CX has become the latest victim of the continuing global financial crisis.

In February, Singapore Airlines cut passenger capacity by 11 due to falling demand and decommissioned 17 of its aircraft to cut costs. It is in talks with employees regarding early retirement and unpaid leave, but insisted that retrenchment was strictly a last resort.

Qantas on April 14, announced it would slash up to 1,750 jobs, ground 10 aircraft and defer delivery of the superjumbo Airbus A380 and other aircraft. It has downgraded its profit forecasts by as much 80 percent.

See also: How companies are reducing costs

Question:
What are some of the ways airline comapanies can cut costs in the economic downturn?

CUTTING COSTS, SAVING JOBS - Kenny the Fish stays buoyant

April 2, 2009 (ST by Yang Huiwen)

Boss of ornamental fish group Qian Hu has imbued staff with culture of cost consciousness

THE global economy is in troubled waters, but ornamental fish group Qian Hu is well-placed to swim against the tide thanks to extensive measures to scale back costs.

Having a boss known as Kenny the Fish who leads from the front and pledges no layoffs helps as well.

Kenny Yap - executive chairman and managing director - told The Straits Times: 'In Chinese, there is a saying that business is half earned and half saved. That very much applies to us.'

He has made the firm highly cost-conscious over the years and the culture has become so accepted by staff that it has allowed the firm to get even leaner during these times.

Mr Yap, 43, who has won numerous entrepreneur awards, is credited with transforming a small time specialist breeder into an integrated group exporting ornamental fish to over 80 countries, with retail stores in Malaysia, Thailand China.

The downturn has certainly hit the firm but the numbers still stack up pretty well.
Revenue dipped 7.2 per cent in the fourth quarter last year, but better cost controls meant net profit rose 10 per cent over 2007's to $1.74 million.

'We've had a low-maintenance company lifestyle all along. It's all about building good habits when it comes to managing costs,' said Mr Yap.

Keeping costs down became part of the group's DNA after an ambitious but expensive move to expand and diversify from 2004 to 2006 sent the firm briefly into the red. There was a desperate need to control costs then, prompting Mr Yap and two other deputy CEOs to give up bonuses for three years.

It also taught valuable lessons in cost management that have left them in good stead to weather this global turmoil. Qian Hu is so cost-conscious it does not even engage a cleaner. Instead, staff draw up a duty roster and take turns to clean the premises at Jalan Lekar every day. This instils in employees the 'concept of ownership', said Mr Yap, who does his share of the work by cleaning the toilets.

Leaders have to lead by example, he added. 'If you are fair to your employees, they will make sacrifices during bad times.'

Good times or bad, senior executives fly economy class or even take budget airlines for business trips, and stay in two- or three-star hotels.

But the firm is stepping up its cost-control measures, after setting an internal target to further bring down total expenses from the previous year's. Measures include more aggressive recycling, conserving energy, a cheaper menu at its corporate dinner and improving productivity of its fish breeding process.
Staff have been assured no one will be losing his rice bowl, thanks to its 'corporate culture of being prudent in spending, even during good times', said Mr Yap.

Operations manager Ong Seng Ann, 41, said: 'All along, I think the company has been very conservative when it comes to spending. Everyone of us is doing his part and doing it well, and hopefully that will keep the company going strong.'

He and his operations team, for example, are doing their bit by aiming to reduce the death rate of fish through more inspections and quality checks.

The company has also become tougher on overtime claims. Operational staff, who take care of the fish, have been encouraged to 'clock out' when they have completed their day's work, said human resources senior manager Raymond Yip.

It recently converted all its lever-type turn-on taps to spring-activated push taps to save water. There is also a greater focus on recycling items such as plastic bags and styrofoam boxes.

Qian Hu is also cutting down on internal company events. Its recreational days for staff have been cut from three to two a year.

The Jobs Credit scheme is offsetting about $220,000 in wage costs a year. This helps mitigate a 2 to 4 per cent increment in staff salaries implemented last year. There are no plans to freeze or cut pay, although the firm is capping headcount at the current 137 for its Singapore operations.

Mr Chai Teck Yi, 24, who works in the export part of the business, said he was relieved that he was assured of his job. 'It helps that our bosses give us regular updates of how the company is doing and the plans they have in store.'

Said Mr Yap: 'Frequent communication with employees is extremely important during the
cost-controlling period. This is because we must constantly impart that concept and at the same time update them on the progress so that they can be assured there is a purpose for their sacrifice and there are results as well.'

Qian Hu is also taking a more cautious approach in managing cashflow. The finance department now monitors its debt collection on a daily basis to make sure customers are sticking to their credit terms, instead of a few times each month.

'I don't think the business is recession-proof, but it is resilient,' said Mr Yap. For this year,the group will continue to focus on containing operating costs and increasing productivity, he said.

Question:
Identify some of the ways Qian Hu is cutting costs