Maximising Industry Profit by Collusion

One strategy that firms in an oligopoly might consider is to form a cartel, in which they agree to operate as if they were one firm (a monopoly). In the typical cartel arrangement, all the firms in an industry agree that, as a group, they will produce the same output and charge the same price for the industry’s product as would a monopolist who controlled the industry. This will maximise the industry’s economic profit, which can then be divvied up on some mutualy agreeable basis.

This seems like a perfectly acceptable way for firms in an oligopoly to operate. There are only two problems with it:

1. Collusion to restrain trade and the forming of cartels, typically, is illegal.

2. If firms cheat on the agreement, the strategy will not work.

Battle of Clubs

ST March 11, 2007
Battle of clubs
Party Central is now firmly focused on the trinity of Zouk, Ministry of Sound and St James Power Station, each with its rabid fans

By Sandra Leong

IF YOU haven’t been out on the town for a couple of months, prepare yourself for a shock as you get set to spin around that disco ball.

In that short space of time, Singapore’s nightclub scene has exploded to centralise around three monster clubs, with news emerging yesterday that the dancefloor shake-up has claimed its first victim.

Smaller clubs are taking a thumping – literally. Thumper at Goodwood Park Hotel revealed that it has had to shut down.

The mid-sized nightclub was hit by falling takings as clubbers streamed to what has quickly become Party Central’s unholy trinity: iconic Zouk, massive Ministry of Sound (MoS) and the newcomer that drove the nail into Thumper’s coffin, St James Power Station.

One of Thumper’s owners, Mr David Chin, says the club’s downward spiral started last November when ‘all the big places started opening’, adding: ‘St James and all that… it took a big chunk out of us’.

Continue reading “Battle of Clubs”

Singapore Girl

ST, 11 Feb
Original Singapore Girl defends the kebaya
SIA girls are globally recognised, says ex-stewardess who was model for uniform

By Nur Dianah Suhaimi

WHEN former Singapore Airlines stewardess See Biew Wah was sent to Paris in 1972, she had no idea that she would be shaping history.

Tasked to be the model for a new cabin crew uniform, Madam See became the mannequin on which French haute couturer Pierre Balmain perfected the cut and look of SIA’s famous sarong kebaya.

Now, 62 years old and a housewife, Madam See has joined the chorus of voices defending the SIA girl. She wrote in to The Sunday Times to say that the iconic uniform has always been the source of her strength and pride.

She was responding to last week’s column, Of Singapore Girls And White Men, which, among other things, made the point that the Singapore Girl deserves to be heard.

Since the national carrier announced last month that it would tender out its advertising account for the first time in 35 years, there has been public debate on whether the Singapore Girl should stay or go.

‘As one of the original Singapore Girls, I feel I have earned the right to speak up on behalf of her,’ said Madam See.

Twenty other readers wrote in sharing the same view.

Said Madam See: ‘The first time we wore the kebaya in Europe, several pedestrians walked into lamp posts because they were so engrossed. It’s a beautiful uniform which brings instant recognition.’

Because Europeans tend to be bigger than their Asian counterparts, SIA was asked to send a stewardess to Paris to model for Balmain. So for a week, Madam See posed for him.

Said Madam See: ‘He was extremely particular. If he didn’t like something, he’d just rip it off.’

Madam See has long given up her kebaya when she left SIA in 1980. But she claims she now has an ‘invisible uniform’ which has kept her strong and confident. ‘Once a Singapore Girl, always a Singapore Girl,’ she said.

Supernature

Straits Times. 11 Feb
By Nur Dianah Suhaimi

WHEN Ms C.F. Chen set up her organic food shop Supernature in a quiet corner of Wheelock Place 10 years ago, she had only five items sitting on the shelves and even fewer customers coming through the door.

When they did, they cringed at the prices and complained about holes in the apples and less-than-pristine vegetables.

Her friends thought she was crazy to have given up her $2,500-a-month job at the now defunct Telecommunication Authority of Singapore to sell ‘rabbit food’.

Today, the 37-year-old is having the last laugh.

Her two Orchard Boulevard shops are among more than 40 organic stores, cafes and warehouses in Singapore, all part of an industry estimated to be worth between $6 million and $10 million a year.

Organic food is produced without artificial pesticides or fertilisers. It is also free of additives and, in the case of organic meat, growth hormones.

Last week, Club 21 founder Christina Ong’s COMO Group bought over the two shops for an undisclosed sum, leaving Ms Chen in charge of the day-to-day operations.

Continue reading “Supernature”

The moment that breaks, it's gone

“In a different world we need to find a niche for ourselves, little corners where in spite of our small size we can perform a role which will be useful to the world. To do that, you will need people at the top, decision-makers who have got foresight, good minds, who are open to ideas, who can seize opportunities like we did… My job really was to find my successors. I found them, they are there; their job is to find their successors. So there must be this continuous renewal of talented, dedicated, honest, able people who will do things not for themselves but for their people and for their country. If they can do that, they will carry on for another one generation and so it goes on. The moment that breaks, it’s gone.”

Lee Kuan Yew, in an interview with CCTV, June 12, 2005

You know you are a 70s baby when…

1. You grew up watching He-Man, MASK, Transformers, Silver Hawk, and Mickey Mouse. Not to forget, Teenage Mutant Ninja Turtles, My Little Pony and Smurfs.

2. You grew up brushing your teeth with a mug in Primary school during recess time. You will squat by a drain with all your classmates beside you, and brushed your teeth with a coloured mug. The teachers said you must brush each side 10 times too.

3. You know what SBC stands for.

4. You paid 40 cents for Chocolate or Strawberry milk every week in class.

6. You find your friends with pagers and handphone cool in Secondary school.

7. SBS buses used to be non-air conditioned. The bus seats were made of wood and the cushion is red. The big red bell gives a loud BEEP! when pressed. There were colourful tickets for TIBS buses. The conductor would check for tickets by using a machine, which punches a hole in the ticket.

8. Envelopes given to us to donate to Sharity Elephant every Children’s Day.

9. You read Young Generation magazine. You know who ‘Vinny’ the little vampire and Acai the constable is.

10. You were there when they first introduced MRT here. You went the first ride with your parents and you would kneel on the seat to see the scenery.

11. Movie tickets used to cost only $3.50.

12. Strawberry ShortCake and Barbie Dolls fascinated Gals.

13. You learned to laugh like The Count in Sesame Street.

14. You longed to buy titbits called Kaka (20cents per pack), and Xiao Ding Dang (50 cents per box), that had a toy in and it changes every week not forgetting the 15 cents animal crackers and the ring pop, where the lollipop is the diamond on the ring.

15. You watched TV2 (also known as Channel10) cartoons because SBC never had enough cartoons for you.

16. Hardy Boys, Nancy Drew, The Three Investigators, Famous Five and Secret Seven are probably the thickest story books you ever thought you have read. Even Sweet Valley High and Malory Towers.

17. KFC used to be a high-class restaurant that serve food in plates and let you use metal forks and knives.

18. Catching was the IN thing and twist was the magic word.

19. Your English workbooks were made of some damn poor quality paper that was smooth and yellow.

20. CDIS was your best friend.

21. The only computer lessons in school involved funny pixellised characters in 16 colours walking about trying to teach you maths.

22. Water bottles were slinged around your neck and a must everywhere you go.

23. Boys loved to play soccer with small plastic balls in the basketball court.

24. Teng-teng, five stones, chapteh, hentambola and zero point were all the rage with the girls and boys too.

25. Science was fun with the balsam and the angsana being the most important plants of our lives, guppies and swordtail being the most important fish.

26. Who can forget Ahmad, Bala, Sumei and John, eternalized in our minds from the textbooks. Even Mr Wally & Mr. Yakki. What about Miss Lala??? And Zaki and Tini in Malay Textbooks?

27. You carried out experiments of our own to get ourself badges for being a Young Zoologist/Botanist etc.

28. Every Children’s day and National Day you received pins or pens with ‘Happy Children’s Day 1993’ or dumb files with ‘Happy National Day 1994’.

29. In Primary six you had to play buddy for the younger kids like big sister and brother.

30. You wore BM2000, BATA, or Pallas shoes.

31. Your form teacher taught you Maths, Science and English.

32. The worksheets were made of brown rough paper of poor quality.

33. You went to school in slippers and raincoat when it rained, and you find a dry spot in the school to sit down, dry your feet, and wear your dry and warm socks and shoes.

34. School dismissal time was normally around 1 pm.

35. There would be spelling tests and mental sums to do almost everyday.

36. Your friends considered you lucky and rich if your parents gave you $3 or more for pocket money everyday.

37. You saw Wee Kim Wee’s face in the school hall.

38. You freaked out when the teacher tells you to line up according to height and hold hands with the corresponding boy or girl.

39. Boys liked to catch fighting spiders.

40. Collecting and battling erasers was a pastime for boys.

41. Autograph books were loaded with “Best Wishes”, “Forget Me Not”, and small poems like “Bird fly high, hard to catch. Friend like you, hard to forget”.

42. Class monitors and prefects loved to say, “You talk some more, I write your name ah!”

43. There were at least 40 people in one class.

44. Large, colourful schoolbags were carried.

45. You brought every single book to school, even though there was one thing called the timetable.

Money Laundering

 

Washing dirty money involves three basic steps: placement, layering, and integration.

In the first stage, the dirty money’s illicit origin is attempted to be hidden by changing its form by having this money invested in cash-intensive businesses. Next, a number of shell companies are set up in countries known for strong bank secrecy laws or for lax enforcement of money laundering statutes. Then the dirty money is circulated within these shell companies until they appear clean.

For circulating this money, two age-old methods are used. The first is the loan-back system and the other the double invoicing system. With a loan-back, the criminal puts the funds in an offshore entity that he owns and then ‘loans’ them back to himself. According to researchers, this technique works because it is hard to determine who actually controls offshore accounts in some countries.

In double invoicing – a method for moving funds into or out of a country-an offshore entity keeps the proverbial two sets of books. To move ‘clean’ funds into say, Singapore, a Singaporean exporter overcharges for goods or service. To move funds out of Singapore, a Singaporean importer is overcharged.

Other ‘layering’ techniques involve buying big items like stocks, luxury cars, travel tickets. The integration stage is the final point when the money is moved into mainstream economic activities – typically business investments, real estate, or luxury goods purchase.

Money laundering is said to have potentially devastating economic, security, and social consequences. It provides the funds needed to finance drug dealers, terrorists, illegal arms deals, corrupt public officials, and others to operate and expand their criminal enterprise.

Because money laundering relies to some extent on existing financial systems and operations, the criminal’s choice of money laundering vehicles is limited only by his or her creativity. Money is laundered through currency exchange houses, stock brokerage houses, gold dealers, gambling houses, automobile dealerships, insurance companies, and trading companies. Private banking facilities, offshore banking, shell corporations, free trade zones, wire systems, and trade financing all can mask illegal activities.

Ngiam Tong Dow: Be a Queen Elizabeth I

 

This is excerpted from a speech on Wednesday by Ngiam Tong Dow, chairman of Surbana Corporation, at the annual gala of the Singapore Venture Capital and Private Equity Association

The world’s first venture capitalist was definitely not a Singaporean, nor a male. In my book, the world’s first venture capitalist was Queen Elizabeth I of England.

Being single, she devoted herself totally to the affairs of the realm. But few would know that in her spare time, Elizabeth joined her courtiers in  business ventures. They formed syndicates to finance, build and arm men- of-war. These warships would lie in ambush at the entrance to the English Channel. When they sighted Spanish galleons on the horizon, they would close in and train their guns on these foreign vessels sailing home with their plunder of Inca gold.

When they were successful in looting the hapless Spanish ships of their gold, the buccaneers commanding the ships were knighted. When they failed, they were beheaded as pirates.

I have taken some liberties in the interpretation of the facts. I believe, however, that this event in history is a fair representation of the origins of the venture capital industry. All the essential ingredients are present – risking your own fortune and even your life for that pot of gold at the end of the rainbow.

Continue reading “Ngiam Tong Dow: Be a Queen Elizabeth I”

Organic Food Singapore

Brown Rice Paradise
163 Tanglin Road, #03-15/16, Tanglin Mall. Tel: 6738-1121
Selling point: An established store with a vast range of certified organic products from many countries.

Bunalun
43 Jalan Merah Saga, #01-70, Chip Bee Gardens. Tel: 6472-0870
391 Orchard Road, #B2-01-3A, Ngee Ann City. Tel: 6735-2337
Selling point: A cosy grocery cum bistro in Chip Bee Gardens which serves breakfast and lunch till 4pm and also does takeaways. The Ngee Ann City branch has a range of products including jams and cakes.

Eat Organic
619H Bukit Timah Road. Tel: 6219-7156
Selling point: A wide selection of organic meat and seafood, and separate chillers for certified organic and non-organic vegetables so you can be sure of what you’re buying.

Fire Flies Health Farm
62 Lot 75 Lim Chu Kang Lane 2. Tel: 6793-7875
Selling point: Thirty types of vegetables at reasonable prices. Plus, you are free to wander about the farm to see how the greens are grown organically. Note, though, that it is not a certified organic farm.

Nature’s Glory
315 Outram Road, #11-03, Tan Boon Liat Building. Tel: 6227-1318
Selling point: Owner Peter Lim drives to Changi Airport every week to collect his imported organic produce, so there is no chance the goods can be tampered with or mixed by third parties.

NTUC FairPrice
Supermarkets around Singapore, including 12 which have dedicated shelves for organic food under its Simply Wellness line
Selling point: The Bukit Timah Plaza outlet has its largest selection of processed organic food, while its Tampines Mall outlet has the largest selection of fresh fruit and vegetables.

Super Nature
21 Orchard Boulevard, #01-21, Park House. Tel: 6735-4338
Selling point: Owner C.S. Chen is strict about selling only certified organic produce. Its cafe offers juices and a selection of soups, salads, sandwiches and stews.

The Organic Paradise
62 Temple Street, #01-01. Tel: 6220-8148
5 Koek Road, #01-25/27, Cuppage Plaza. Tel: 6736-2089
Selling point: Owner Lawrence
Hoong absorbs the 5 per cent GST, and offers a membership scheme which comes with a 10 per cent discount.

U Say Marketing
Block 1 Wholesale Centre #02-03. Tel: 6872-4868
Selling point: The company was established in 1936, and current owner Low Say Eam supplies organic fruit mainly from New Zealand under the trusted Enza brand.