Sunday, January 27, 2008

http://www.channelnewsasia.com/stories/singaporelocalnews/view/325124/1/.html

Summary of the article:
The Urban Redevelopment Authority (URA) has unveiled a S$19m design plan to build a coastal promenade and park in the Woodlands neighbourhood. A nine-hectare park will be created from vacant land along the coastline, featuring playgrounds, picnic areas and nature trails to cater to different recreational needs.Construction of the Woodlands Waterfront will begin by the middle of this year and is expected to be completed by the middle of 2010.

The Woodlands Waterfront is also something Dr Tony Tan, an ex-MP of the area, will definitely look forward to as it was his dream to have it.

"He shared his dream of using the waterfront....bring in water sports, water activities, and let the residents enjoy the waterfront and have a good view of Johor Baru, our closest neighbour. It has been one of his (Dr Tony Tan's) dreams for Sembawang," revealed Health Minister Khaw Boon Wan, who is an MP for Sembawang GRC.


How it links to econs:

In this article, we can look at the concept of opportunity cost which is the next best alternative foregone. In this case, $19million is going to be spent on building the waterfront oasis, and this money as well as the land could have been used for building other kinds of amenities like hospitals. However, since the govt has decided to build this waterfront oasis, the marginal benefit must have exceeded the marginal cost, and this is where rational decision making comes into play.

Some benefits include the ability to bring in water sports and water activities. This might make the Woodlands Waterfront a popular place for water-related sports and competitions in future and this in turn will attract investors helping to boost this aspect of the economy. Furthermore, building the Woodlands Waterfront allows resources to be fully utilised since the land it is going to be built on was vacant in the first place.



Done by: Anthony

4:46 PM

Summary of the artible:
This article is talking about how the property sector has recovered and is now booming with the sale of the most expensive houses in Orchard Residences, the priciest collective sale (Westwood Apartments in Orchard Boulevard) and the most expensive HDB flat and coffee shop (in Marine Parade and Jurong respectively).
The early boom in luxury properties was contributed by the sale of suburban condos and HDB flats. More importantly, figures showed that almost every flat been sold goes at a price that is above market valuation. This hot demand had make the government has stepped in to do something about the situation. Some of the things done include: the caliberation of the market's rise and the release of more land.

How it links to econs:
ya.. so here we can see the concept of demand and supply. As a result of people's investment on the property market, many who really wants to buy houses cannot get them. So, this create a hot demand that cannot be met by the supply. So, the problem of scarcity is involved here too. Scarcity of land and property/flats. :)

Done By:
Dee, Kheng Hwee

6:39 PM

6:20 PM

11:29 PM

This article is about Japan "planning to build coastal wind farms to tap into the gales of the Pacific Ocean". This will help Japan, world's fifth-biggest emitter of greenhouse gases, reduce its greenhouse gas emissions and its dependence on fossil fuels.

How is it related to econs:
Limited resources and unlimited wants. Fossil fuels like oil, coal and natural gas used by Japan are mostly imported from abroad. Yet, there is high demand for energy.

yup, that's all. short and sweet:)

done by Karen.

9:46 PM

Article: Australian sheep-shearers decline

Comment:
So far, we have seen many examples of scarcity caused by the lack of resources or land. However, in this article, a different type of problem can be seen. Here, there is clearly no lack of resources, as there are plenty of wool waiting to be sheared, but there is a lack of the supply of labour as nobody in Australia is keen on taking up this job. This has an impact on Australia's economy, as this lack of sheep-shearers is causing inefficiency due to the available resources that are not being utilised fully. The lack of sheep-shearers would cause a direct impact on the wool industry, which is one of Australia's largest industries.

Done By: Eugene

PS: Sorry for the late post. Was sick during the weekends. =(

6:50 PM

Rising cost of fuel, raw materials to blame for 10-20% rise, say shopsBE PREPARED to spend 10 per cent to 20 per cent more on foodstuffs this Chinese New Year.Those in the trade cite the same reasons for the price hike: Increases in raw material costs and in operational costs from higher fuel prices.They say that the increased costs come from the general upswing of prices last year, but the shortage of supplies and price increases now gripping Malaysia have not crossed the Causeway.While some retailers say they will pass on some of the costs, others have chosen to absorb them to keep their regular customers. However, the higher prices may not dampen demand in this market, estimated to be worth $10 million a year. Owner Chan Kim Ho said: "I am not worried that demand will be affected. In fact, we are swamped with orders."Glory Food Products managing director Andrew Chin said: "The prices have gone up for everything – oil, sugar, butter. And flour – that is the worst."Mr Png Geo Lian, chairman of the Association of Chinese Wheat Flour Merchants of Singapore, said flour prices jumped thrice last year. A 25kg bag which cost $20.40 in August now costs $30.90. The 50 per cent increase is the result of a worldwide shortage of wheat caused by severe droughts and crop delays in Australia, the United States and Canada.Mr Chin, saying that Glory products will cost 10 per cent more, said: "I have no choice but to cover my costsPoh Guan Cake House's Mr Chan said many customers were regulars, "so I won't want to raise prices too much".Among retailers who have chosen to absorb the price hikes is Upper Cross Street shop owner Choong Tzien Tao, who said: "Since it is not very drastic, I would maintain the same price rather than risk losing my customers." (This ain't the complete article, i removed the worthless sentences =P)

Analysis of article:
YET another case of scarcity

One look and this is another case of scarcity. According to the economics text reference, all countries face the basic problem of scarcity such that since human wants are virtually unlimited, resources available are only limited to satisfy out wants, thus a solution has to be implemented or a choice has to be made to make the most of what we have.
We do realize the scarcity of fuel. Fuel is characterized under LAND, such that it is a resource supplied by nature. It is a very limited resource, as research shows that we are running out of natural resources such as oil and fuel. Thus the prices of oil and fuel increases.


A choice or a solution? How about opportunity cost? Which??? o.O?

As mentioned above, the presence of scarcity leads to a choice or a solution that has to be implemented. The result is such that costs rise. Is it worth it now? That the sacrifice of a limited resource in exchange for an extra amount of money? Putting this aside, we do see that (as quoted from the article) “While some retailers say they will pass on some of the costs, others have chosen to absorb them to keep their regular customers”. A fine example would be that of Upper Cross Street shop owned Choong Tzien Tao. He has chosen not to increase the price of the products. This can be explained using the marginalist principle whereby he has chosen benefits over costs. The explanation is such that by absorbing the increase in pricing of the goods, he hopes to retain his customers and not lose them. Usually, some customers, on seeing that there is an increase in price of the goods, they choose to not buy it. In fact, he may have an increased number of customers. This is so because when he has chosen to retain the cost of his goods instead of increasing it, his goods are now priced lower than other vendors’ goods, thus more customers would be attracted to a similar product of a lower price. By doing so, he hopes that by absorbing the increase of price in goods, in exchange he would get more customers. If more customers buy his products, his revenue increases. And this increased revenue should cover or might surpass the amount he had to fork out at the very beginning. This idea can be presented using the PPF. In this current situation, an increase in the retailer’s spending(the extra money he pays to cover the increased cost, absorbing the extra cost), results in an increase in the number of customers that would buy his goods. This could thus be classified as an opportunity cost too. Hence, while the other retailers actually forgo some customers to cover the cost of the price hike, he earns more money than before. =)


The trouble maker: Demand and Supply

So why has the prices been rising consistently?
“Glory Food Products managing director Andrew Chin said: "The prices have gone up for everything – oil, sugar, butter. And flour – that is the worst.”
What does this show? Lets take flour for example. The essential item for making CNY products (for e.g pineapple tarts, almond biscuits). It is in high demand as people WANT it, but the production doesn’t meet the demand. Supply isn’t enough, thus prices as to be increased. Ughhh not good.

Well thats all I can think of.
Painstakingly written by a human called wuhong -> >.<

3:00 AM

ARTICLE TITLE :
Patients seek private doctors for reputation, not price
By Judith Tan

As you all already know the government has asked the private doctors to let their charges be known to the public and this article is regarding that ! pretty short article

Link : http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_198186.html

THE SUMMARY (sort of) :

Given the gap in data, the ministry announced on Thursday that it would push through legislation to make it mandatory for the private hospital to make public their bill sizes.
While private doctors agree that patients should be given the knowledge to make informed choices when it comes to picking a doctor, they argue that price is not the only thing they look for.'Bill size data should never be the only means for patients to consider. Patients tend to look specific treatments and the competence of the specialist in delivering it,' he said. .......clinical outcome of different conditions or procedures should be published in tandem with hospital bill sizes. Five years ago, MOH moved to make public the size of hospital bills - which triggered almost immediate price cuts at public hospitals that had higher prices than others.

ANALYSIS :

this report shows opportunity cost and the demand supply pattern and a consumer who has to make rationale decisions

Decision making is exhibited when the consumer(patient) decides which doctor to go to analysin details such as the treatment quality, the cost of the treatment(whether there are any other clinics that offer services at a better rate).

Opportunity cost is shown when the patient decides to forgo consumption of another hospital's service that may be of same standard or if the patient decides to go to a hospital due to other factors such as accessibility reputation conditioning of hospital as well

Demand supply is shown. in this case if ceteris paribus other than demand then the price that the hospitals show is what the consumers would follow and if the hospitals push their prices down the demand for that service would go up enabling a win win situation for both the parties consumer surplus and profits for the hospital !!!

Done By : C.Vidhya

Labels: Econs

10:16 PM

http://www.straitstimes.com/Free/Story/STIStory_198124.html

Comments on the article:

I'm not interested in commenting about who has the right to run the sports hub, but i'm more concerned about the budget needed to build it. Certainly, a large amount of money is being invested into this particular project. However, this did not deter the government's efforts to do so.

Marginal benefits: As stated, "Singapore needed an icon that would draw in top sporting talent, and create jobs and a lifestyle in sync with a sophisticated service economy" This will not only further reduce unemployment rates in Singapore, but it will also boost and generate growth in the service industry and allow more Singaporeans to enjoy a higher quality of living. This allow Singapore to maintain its competitive edge on the global stage.

Marginal costs: Needless to say, i think it may be the space and money required to develop other sectors of the industry e.g. more shopping malls to generate growth in the retail industry or science parks to promote technology-intensive, higher value-added manufacturing activities in the electronics, chemical engineering and engineering fields. . The land needed to create more living spaces for Singapore's growing population is also foregone.

However, the marginal benefits exceeded the marginal costs. A vibrant sports industry contributes to the economy and sustains the sports delivery system.

As quoted,

'This is an investment and this is money well spent,' he told reporters gathered at The Ritz-Carlton hotel for the announcement of the winning design.

P.S he refers to Dr Vivian Balakrishnan, Minister for Community Development,Youth and Sports.

Done by: Ling Ling =)

11:32 AM

Summary:
The Qantas-owned budget airline Jetstar is considering the use of Changi Airport as its key long-haul overseas hub. It follows growing speculation that the low-cost carrier might ultimately team up with its Singapore affiliate Jetstar Asia to offer joint services to destinations in Europe. Flight between Australia and Britain are seen as the nest step in the burgeoning budget-price international air travel market. Five cities including Singapore have been considered as possible hub for Jetstar Australia, but media reports suggested that Singapore would be the likely location. The advantage of using Singapore as a hub was that Changi Airport was also fed by Jetstar Asia’s intra-Asian network which helps to drive costs down and enable Jetstar to utilize the more liberal air rights enjoyed by Singaporean carriers into Europe. With both airlines keen to exploit the low-cost, long-haul travel market, a joint operation on the European leg would make economic sense.

Comment:
The budget airline has to make a rational choice in their decision-making of its key long-haul overseas hub. The marginal benefits in this case are the low cost and the ability to utilize more liberal air rights enjoyed by Singaporean carriers into Europe. As costs are driven down, there is also productive efficiency where market output is produced using the least-cost combination of inputs.

Haslina and Jiani

7:32 AM

This is the link to the article we've chosen:

http://www.channelnewsasia.com/stories/singaporelocalnews/view/323580/1/.html

This is the main gist of the article:

Saudi Arabia wants to become one of the top ten competitive destinations in the world by 2010 and the oil-rich kingdom is keen for Singapore partners to help make it happen.

"Of course, Minister Mentor as usual hit it right on when he talked about the human resources because that's really the challenge. The challenge is not in the capital, the challenge is certainly not in the investment interest in the city." "The challenge really in the execution speed and to execute quickly you need the minds, the hands, you need the human resources. And so what we are going to be doing is to attract global firms (and) we are going to outsource lots of the work to them."


So, these are our reflections:

We think that in this collaboration Singapore has the comparative advantage of skilled labour, while Saudi Arabia has the comparative advantage of resources.

By collaborating with Singapore, Saudi Arabia can consume beyond it's PPF as they will overcome the scarcity of having a lack of skilled labour which Singapore is able to provide. Singapore will benefit from the creation of jobs with this opportunity and build crucial ties required for future endeavours. Should Saudi Arabia really develop into one of the world's top 10 competitive destinations as expected, Singapore will reap profits as well.

Moreover, through this partnership, both Singapore and Saudi Arabia are able to allow their limited or scarce resources to be fully and efficiently employed, achieving the maximum attainable combination in the PPF. At the same time, the capabilities of both economies will be enhanced.

Besides, when Saudi Arabia becomes one of the most competitive destinations through this partnership, both Singapore and Saudi Arabia will experience economic growth and is then able to attract more investors for both countries, further improving the economies of both countries.

In some way, Singapore is planning ahead for the future. Through such a collaboration, we build up on trust and more collaborations would be possible in the future, hence ensuring that Singapore remains competitive and keeps up with the ever changing economy.

In conclusion, both countries gain economic benefits from this partnership where both countries will experience a faster economic growth.

P.S: msn sucks for project work. NEVER have project work on msn :D
Oh! By the way..matthew is not mattchan, dun be tricked!!! ;P
and ting yun's NOT a pikachu lol=))
meow~ that's right!
pingalapong n sangalacha doesn't it rhythm so well :)

Oh this is by Tingyun, Ruiting, Jiahui and Sijia.

8:21 PM

"some consumers think dentist-made brands are more effective, according to an online survey last year by Mintel, a consumer research company. Eighty-seven percent of 2000 respondents nationawide thought that store-bought products were not as effectvie as a whitening product from a dental office. Today's consumer would rather spend a few dollars more on products created by a dentist because he is getting a professional who knows his oral health."

er...
the econmics side of this is...

oppurtunity cost of getting products created by dentist is lower than from normal people, so they er.. make rational decision by buying the ones from dentist?
and increase in consumer needs in this area... so that what PPF can increase??

super bored,
plus get this over with sooner =D

7:03 PM

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10:19 PM