Oil prices dip on jump in US crude reserves

Posted: 04 June 2009 0404 hrs

A view of the Tawke oil field and plant that is linked with the Jihan Turkish pipeline in Zakho, 400km north of Baghdad.

NEW YORK: Oil prices plunged on Wednesday from seven-month highs after a surprise jump in American crude reserves that indicated weaker-than-expected demand, and a US dollar rebound.

New York's main futures contract, light sweet crude for delivery in July, sank 2.43 dollars from Tuesday's close to 66.12 dollars per barrel. The contract had surged to 69.05 Tuesday.

London Brent North Sea crude for July delivery tumbled 2.29 dollars to 65.88.

Prices dipped as a result of the dollar's rebound after sinking to new lows and a surge in oil inventories in the United States, the world's largest energy consumer.

The US Department of Energy announced on Wednesday that American crude oil inventories leapt 2.9 million barrels in the week ending May 29 to reach 366 million barrels. Most analysts had expected a 1.7-million-barrel drop.

"Continued demand destruction continues to make for a bearish big picture, underscoring that recent price gains were not underpinned by market fundamentals," said Antoine Halff, deputy head of research for Newedge.

The higher stocks were attributed to rebounding imports.

"The low imports over the last few weeks were - as we said over the last few weeks - not the result of a lack of crude but were rather the result of refiners not buying because their stocks were ample," said Hussein Allidina of Morgan Stanley Research.

"The outlook for oil prices may have just taken a significant turn for the worse," warned Nic Brown of Natixis, analyzing the new US inventory levels.

Brown said that both US and Chinese strategic oil reserve levels were close to, if not completely, full.

This week, oil has punched seven-month peaks on the back of a weakening US currency, which makes dollar-priced oil cheaper for holders of stronger currencies and in turn stimulates demand and pushing up prices.

Meanwhile the market was also affected by reports that some members of the Organisation of the Petroleum Exporting Countries (OPEC) were not adhering to agreed output cuts.

"We did get some reports about OPEC output going up for the first time in several months," MF Global analyst John Kilduff said on Tuesday.

OPEC, which pumps 40 percent of world oil, cut its production target three times late last year to stabilise prices, which tumbled from record highs above 147 dollars in July to 32.40 dollars in December.

The group, which last week decided to keep output unchanged amid signs of economic recovery and higher crude prices, seeks to influence prices by setting an output quota, with members given individual production targets.

The Saudi cabinet said on Monday that it sees 75 to 80 dollars a barrel as a fair price for crude. Saudi Arabia, the world's biggest oil exporter, is the de facto head of the OPEC oil producers' group. - AFP/de

From ChannelNewsAsia.com; see the source article here.

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Moving up

SINGAPORE ECONOMY

Manufacturing economy rebounds in May, boosted by electronics orders

Ryan Huang, ryanhuang@mediacorp.com.sg

CHANNEL NEWSASIA

The rebound was boosted by an expansion in the electronics sector. BLOOMBERG

SINGAPORE'S manufacturing economy turned the corner in May, after eight months of contraction.

The Purchasing Managers Index (PMI), compiled by the Singapore Institute of Purchasing and Materials Management posted a reading of 51.2 last month, up 2 points over April. A reading above 50 indicates the manufacturing economy is expanding.

The rise in the overall PMI was due to a first-time expansion in new orders, new export orders, inventory and stocks of finished goods.

"I think we are seeing green shoots in the global economy. There's a lot of hope that the government stimulus package in China is finally taking effect, and that should bode well for the regional economies especially for the export dependent economies such as Singapore," said Ms Selena Ling, head of Treasury Research and Strategy at OCBC Bank.

Singapore's overall PMI was also boosted by a second consecutive month of expansion for the electronics sector, which makes up a third of manufacturing output.

The corresponding electronics index for May showed a reading of 52.9, up 1.3 points from April, as a result of more new orders.

The positive data for Singapore comes on the back of similar good news out of China.

On Monday, China released data showing its manufacturing activity expanded in May for the third consecutive month.

Some analysts believe the latest PMI in Singapore points to a bottoming out for the manufacturing sector globally, although it's too early to say if the momentum can be sustained.

"It'll be a little premature to actually say that it's due to the export demand recovery in the G3 or G7 economies," said Ms Ling. "In all likelihood, we think that it's more due to regional demand, China for instance. We are looking for a sustainable rebound in the global economy and demand, and that really at the end of the day has to come from developed economies."

The monthly PMI figures are closely-watched in Singapore because manufacturing makes up a quarter of its economy.

From TODAY, Business – Wednesday, 03-Jun-2009

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The perils of dual citizenship

The commentator has a point to make. I say, given that you have two choices, you'll pick what you like – it becomes a challenge, therefore, for one country to be the better choice by people of 'dual citizenship' – be it Singapore, or any other country. That is what I can say.

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Letter from M Lukshumayeh

I REFER to the report "It's time to revisit the dual-citizenship issue: MP" (May 30-31).

I refer to MP Cedric Foo's suggestion that the Government should "reconsider offering dual citizenship" to lure top foreign talent to Singapore.

Being a small island-state with a small population, the commitment of Singapore's citizens is vital. Dual citizenship goes against this virtue, as foreigners with dual citizenship have the luxury of choice — and with that, their commitment to their respective countries becomes diluted. Mr Foo's suggestion focuses on the privileges of citizenship only, not on the responsibilities.

Furthermore, dual citizenship would not only apply to foreigners taking on Singapore citizenship as dual citizenships but also allow Singaporeans taking on foreign citizenships too. Surely Singapore should not and must not allow this course of action, for fear of losing even more of our best talent to their adopted nations.

From TODAY, Voices – Wednesday, 03-Jun-2009

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Hurt, she quits

So much for scandals… we knew the wrong before we do it, only that there is some pull and enticement… some 'sweet' temptation while in the process of being caught up in the act.. then we are found out!

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UK POLITICS

LONDON — Ms Jacqui Smith, Britain's first female Home Secretary, will stand down in Prime Minister Gordon Brown's Cabinet reshuffle.

The beleaguered minister, who has been at the centre of intense controversy over her expenses claims, apparently told Mr Brown two months ago that she did not want to continue in office.

She is said to have been "hurt" by recent events, which have included the revelation that she inadvertently claimed for two pornographic films watched by her husband and criticism of the way she has designated a house she shares with her sister in London as her main home.

Ms Smith is also said to have bought her husband — employed by her as an assistant — a £240 ($569.70) Apple iPhone on her office expenses. She also billed taxpayers for her accountancy costs and £1,600 for three digital cameras and a camcorder over three years.

The move will pave the way for a radical shake-up of Mr Brown's Cabinet following what is expected to be disastrous local and European election results for Labour this weekend.

With the future of Mr Alistair Darling, the Chancellor, also in doubt, the revelation led to opposition claims that the government was in disarray. But this was denied by Harriet Harman, the leader of the Commons, who told Radio 4's The World at One: "It's not the wheels falling off government."

Ms Smith, who had been widely tipped for the sack, appears to have decided that she would rather resign on her own terms. A source close to her said she had discussed her plans to stand down with the Prime Minister two months ago.

"She's been hurt by what's gone on and it's been a difficult couple of months for her," the source said.

Ms Smith, who was chief whip before her surprise appointment as Home Secretary when Mr Brown became Prime Minister, has had a difficult two years in the post.

The Home Office is a notorious graveyard for political careers. Since 1997 two of her predecessors — Mr David Blunkett and Mr Charles Clarke — have been forced out against their will.

Ms Smith's expenses claims are currently the subject of an investigation by the parliamentary commissioner for standards. She repaid £10 claimed for the pornographic films, but in other aspects she insisted she has done nothing wrong.

The news broke as three other Labour MPs — Mr David Chaytor, Ms Patricia Hewitt and Ms Beverley Hughes — announced that they would be standing down at the next election. THE DAILY TELEGRAPH,THE GUARDIAN

From TODAYonline.com; see the source article here.

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The trillion-dollar question

The Daily Telegraph

NEWS COMMENT

Niall Ferguson

US Treasury Secretary Timothy Geithner and Chinese President Hu Jintao: Is a divorce in the cards?
EPA

WHO is going to come out of the economic crisis stronger and with the whip hand — China or America? Two years ago, economist Moritz Schularick and I coined the word "Chimerica" to describe what we saw as the key relationship in the then-booming global economy: China plus America.

To simplify the story, think of an unhappy marriage in which one partner does all the saving, while the other does all the spending. (We all know at least one couple like that.) But then the partner with the retail therapy habit maxes out on his/her credit cards. At the same time, the parsimonious partner finds her/his job under threat. What previously was a stable relationship is suddenly on the rocks.

In February, the People's Daily warned of an impending "period of chillness". Could this be one of those great turning points in history, when the balance of power tilts decisively away from an established power and towards a rising challenger? It is possible. Financial crises often accelerate the gradual shifting of the geopolitical tectonic plates; they are to history what earthquakes are to geology.

It was the disastrous Mississippi Bubble of 1718-19 that fatally weakened the regime in France. By 1907, a Wall Street crash could send a shockwave across the entire British empire, a harbinger of a new era of American power. Something similar may be happening as a consequence of the American financial crisis that began nearly two years ago. The flapping of a butterfly's wings may signal the waning of US hegemony and the advent of a Chinese century.

Just consider the impact of this crisis on the United States and China. According to the International Monetary Fund, the US economy will contract by 2.8 per cent this year — while China's is forecast to grow by more than 6 per cent.

Of course, China has not been wholly unscathed by the crisis. Many more Chinese than American workers have lost their jobs since this crisis began. Yet I do not believe (as some Sino-pessimists do) that the regime in Beijing faces a serious threat of social unrest. Like other rising powers in past centuries, China is imbued with a remarkable sense of patriotism. People are proud of their country's economic miracle. After two wretched centuries, they believe China is on the way back.

Even before its economy becomes the world's biggest, China can play a much more assertive role in its relations with the United States. The spouse with the money generally wins the argument, after all. Especially when the argument is about the other spouse's debts.

And what debts! The US federal government's deficit will be US$1.84 trillion ($2.65 trillion) this year — roughly half of total expenditure and nearly 13 per cent of GDP. Moreover, the Congressional Budget Office anticipates that total debt will nearly double in the decade ahead.

With the lion's share (around 70 per cent) of their $2 trillion of international reserves held in the form of US bonds, the Chinese are understandably alarmed by this tsunami of red ink.

We know pretty much what Treasury Secretary Timothy Geithner is hearing in Beijing this week because the Chinese have been grumbling about American profligacy for months. "We have lent a huge amount of money to the United States," Premier Wen Jiabao declared in March. "Of course we are concerned about the safety of our assets. To be honest, I am a little bit worried."

However, Mr Geithner knows the truth of the old adage: When you owe the bank a small amount, the bank has the power. But when you owe the bank a huge amount, it's the other way round. Mr Luo Ping, a director-general at the China Banking Regulatory Commission, put it nicely in February: "Except for US Treasuries, what can you hold? US Treasuries are the safe haven. For everyone, including China, it is the only option. We hate you guys. Once you start issuing $1 trillion to $2 trillion (of bonds) we know the dollar is going to depreciate, so we hate you guys, but there is nothing much we can do."

"We hate you guys?" Now that really does have the ring of marital breakdown. Let's hope Mr Geithner is good at ducking crockery. Like divorces, major shifts in the balance of power are seldom amicable.

From TODAYonline.com; see the source article here.

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New site to test the waters

Properties, properties, in the midst of the worldwide recession, how I wish, how I wish, I have the means to buy new possession…

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THE first sale site at the proposed Kallang Riverside waterfront lifestyle precinct was made available yesterday — after a scheduled six-month delay.

The 0.74-ha land parcel along the Kallang River with a permissible gross floor area of nearly 20,917 sq m — is envisaged to be a waterfront hotel development catering to business travellers and tourists. It can house hotel rooms and shops like retail and food outlets.

The parcel was scheduled to be available on the Reserve List last December, but as more time was needed to finalise the planning and development conditions of the Kallang River, the URA deferred the release.

The site will show how well the sector is doing, said Cushman and Wakefield managing director Donald Han. "(This) is going to be a litmus test particularly for developers to ascertain whether this is the right timing in view that generally the market has seen some positive news ..." he said.

Based on the plot ratio, the site is expected to be of a "manageable size" that can house 300 to 380 rooms. Price would also range between $150 to "maybe at most" $190 per square foot per plot ratio, he said.

"Mainly on the basis that this is going to be a first mover for a developer to develop a fairly new area ... I think a discount factor for the market would probably be expected."

Under the system, a site would be released for sale only if it receives a bid with a minimum price that is acceptable to the government. 938LIVE

From TODAYonline.com; see the source article here.

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5 Royals workers questioned by police

In the process of finding out the root cause of the bleaching agent finding its way into the baking ingredients. Will be watching this progress. First time I see this happening in real life. I always joke about 'sabo' with my colleagues – it is now happening (at least that's how it looks) in real life.

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FIVE Royals Premium Cakes employees are being questioned further by police, said the company after the alleged sabotage at its Bedok factory on Sunday.

Company director Joy Tang said: "They (the police) are doing the third round of questioning. First round was for all of our employees. Second round was done yesterday, the police chose five (and) tried to gather some forensic information from the five suspects. Today, the same five will be going over."

A chemical contaminant believed to be a bleaching agent was discovered in some of the ingredients, namely pie fillings and sugar syrup, by staff on Sunday. This led to a recall of confectionary products made at the factory.

The company has yet to decide on measures to prevent a similar incident, said Ms Tang. Its management will hold discussions before submitting a proposal to the Agri-Food and Veterinary Authority (AVA) in the next two days, she added.

Ms Tang adds that the company is doing a final cleaning to sanitise the factory. Operations at the factory will remain suspended pending investigations by the police and the AVA. The police said investigations are on-going.

AVA says it is still in the process of running tests, and has not received any complaints from people falling ill from consuming any contaminated products. 938LIVE

From TODAYonline.com; see the source article here.

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White House seeks more funds vs A(H1N1)

06/03/2009 | 10:37 AM

WASHINGTON — The White House on Tuesday night asked Congress for $2 billion to help prepare for a possible swine flu pandemic — a request that came on top of up to $2 billion already pending in House-Senate talks on a huge war funding bill.

President Barack Obama also sent lawmakers a request for $200 million in humanitarian aid to Pakistan, where 2.5 million people have been displaced from their homes, in large part because of the government's campaign against insurgents.

The requests, if granted, would likely bring the cost of Obama's funding bill for military and diplomatic efforts in Iraq and Afghanistan to more than $100 billion.

Republicans in the House are lining up to oppose the war-funding bill if Democrats insist on including in it a new line of credit for the International Monetary Fund.

Democrats may have to scramble to pass the bill in the House, where Republican votes are likely to be needed to make up for about 50 anti-war liberal Democrats who opposed it last month.

At the core of the tentatively priced $98.8 billion House-Senate measure is $79.9 billion for the Pentagon, a figure that's also rankling House Republicans since it represents an almost $5 billion cut from the version that passed the House last month. That measure did not include funding for the IMF.

Responding to media reports that House Democratic negotiators have agreed to include a new $100 billion line of credit to the IMF — a top priority of President Barack Obama — the top Republican in the House said Tuesday he would oppose the bill.

"Let's be clear: a troop-funding bill should fund our troops, period," said Minority Leader John Boehner, a Republican from Ohio. "Weighing down this critical legislation with nondefense spending will only drag this process out further and cost it essential Republican support needed for passage."

Obama promised the IMF money at April's G-20 summit to help developing countries deal with the troubled global economy. About $8 billion for an earlier commitment for the IMF will be included. - AP

From GMANews.tv; see the source article here.

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Sabotage at Royals?

Following the alleged recall of products from Royals bakery, it seems that this is not some virus or fungus or bacteria… human infection getting into the nerves?

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Vina Mubtadi, nurvianam@mediacorp.com.sg

THE director of a cake factory forced to recall its products has alleged that sabotage was responsible for the chemical contaminant found in its ingredients.

On Sunday, the staff of The Royals Premium Cakes factory in Bedok were about to make pies for the next day when they noticed something unusual. Director Joy Tang, 49, said: "At about 11.30am, they began to use one particular ingredient for chicken mushroom pies. When they opened up the ingredients, there was a very strong smell of bleach ... I realised it would be a deliberate sabotage so we called in the police immediately."

The contaminant was discovered in the pie fillings and sugar syrup. Police confirmed that they got a call from the factory on Sunday at about 12.10pm and are investigating.

Products sold at The Royals' five outlets — all run by franchisees — were unaffected, as the contaminant was discovered before it went into production, said Ms Tang.

Even so, yesterday, its four takeaway outlets were not open for business, though staff were on hand to assist Agri-food and Veterinary Authority (AVA) officials. Its fifth outlet, a cafe at Upper East Coast, continued selling beverages and food like mee siam.

Ms Tang suspects sabotage because "the chicken-mushroom is one of my best-sellers". The factory hires about 16 workers — administrative, delivery and production staff. All have given their statements to the police, she said.

The factory's operations will remain suspended pending investigations by the police and the AVA. The latter is also supervising a thorough cleaning of the factory, and has taken samples of pies, cakes and other ingredients for analysis.

"As a precautionary measure, AVA has instructed the factory to destroy all its existing stocks of semi-processed and finished products, including opened packets of ingredients in the factory and the outlets," said spokesman Goh Shih Yong.

No customer complaints have been received so far, Ms Tang said, but those who want a refund can get one. The hotline number is 6444 2262. 938LIVE, additional reporting by Neo Chai Chin

From TODAYOnline.com; see the source article here.

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Stock markets in the ‘yin phase’

BUSINESS COMMENT

Carl Stick

ACCORDING to Chinese philosophy, yin (shadow) and yang (light) are complementary energies that form a universe. It is a convenient mythology that has, over time, been used to help smooth the many paradoxes associated with modern life.

In recent years, it has been applied to understanding of the nature of economic and business cycles. The conclusions may have implications for how we, as investors, steer through torrid times.

The main proponent of this theory is Mr Richard Koo, chief economist of the Nomura Research Institute, and well known for his examination of "Japan's Great Recession", from 1990 to 2005.

Mr Koo believes economies and companies operate within yin and yang phases. During "lighter" yang phases, both focus on growth and "profit maximisation" (driving up the share price); in "darker" yin phases, this emphasis shifts to "debt minimisation" (reducing debt levels), at which point the economy falls into a "balance sheet recession". Under these conditions, asset prices plummet, pushing corporate and personal balance sheets underwater — this is where we find ourselves today.

Mr Koo's theory is contentious because it challenges conventional wisdom about recessions and how to tackle them. It states that monetary and fiscal stimuli are ineffectual if used at the wrong point in the cycle.

Mr Koo proposes more fiscal stimuli are required during a yin phase, when borrowers are few, and looser monetary policy during a yang phase, when borrowers are abundant. Any contortion and the cycle collapses.

Mr Koo's depiction of Japan's recession is one derived from a balance-sheet recession perspective. He argues that the lesson to be learnt from this period is the redundancy of monetary policy.

His conclusion, that governments must spend their way out of recession and worry about budgetary imbalances later is contentious. Nevertheless, if we are suffering from a global variant of this asset crunch, we must all view leverage more critically.

A balance sheet recession occurs when asset prices plunge, leaving indebted entities technically bankrupt. On a corporate level, this transforms the indebted business from its normal function of profit maximisation to one where its overarching strategy is paying down debt and diverting cash flows away from future growth.

In monetary terms, if the business opts to pay debt rather than increase borrowing, cash remains within the banking system, and looser monetary policy has a negligible impact. It does not matter how low the cost of borrowing becomes if there remains a falling demand for debt.

We are seeing evidence of this today. Central bank money supply has grown, but broader money supply — money created through loans — is lagging. In other words, the "multiplier effect" — the expansion of commercial bank money into the real world — is modest and reflects the banks' desire to hoard capital. This is the essence of Mr Koo's warning.

We believe this warning has not been heeded by the market, as evidenced by the equity rally from the fearful lows in March.

Despite the shift in sentiment, it is unlikely that our willingness to spend will be maintained as unemployment rises, and we choose, instead, to repair our personal balance sheets.

Recently, American investor Jeremy Grantham presented the future as a "long, boring period where making fortunes is harder, and investors value safety and steady gains rather than razzle-dazzle".

The spring bounce looks more "dazzle" than steady. He does, however, hit upon the key for investing now: We should be investing in the reliable entities that have consistently generated equity returns, without resorting to debt to maximise results.

Cash-rich businesses do not have the dilemmas of their indebted brethren; they can invest the money they earn back into the business, compounding earnings growth, year–on-year. In a yin environment, this represents a crucial advantage.

The yin part of the cycle can take years to work through.

There is an evolutionary aspect to Mr Koo's theory, however. Human ego ultimately dictates the fear associated with the yin phase, and the overconfidence that will induce the bubbles in the yang. These precepts are nothing new, but identifying this particular cyclicality should help investors tailor their strategies.

The best investment returns of tomorrow will be generated by businesses with the strongest balance sheets today — in this respect, cash is king. Such investments remain our focus.

Carl Stick manages the Rathbone Income Fund and is a director of Rathbone Unit Trust Management. This article was published in The Daily Telegraph on Friday.

From TODAY, Business – Monday, 01-Jun-2009

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CEO 101

What is the impact of the current economic situation on your pro-family HR policies?

Mr Lim Cheng Teck, chief executive, Standard Chartered Bank, Singapore

Standard Chartered has in place strong pro-family policies and practices. In difficult times, it is more important than ever to focus on our employees.

However, these initiatives are not economic-environment dependent but are integral to motivating and bringing out the best from our talent.

We want to create a supportive and family-friendly workplace where employees are better able to maintain work-life harmony.

Examples of our pro-family practices include flexible/home working arrangements, a shorter work week, sabbatical leave, paid family-care leave and Happy Friday, whereby employees are encouraged to leave the office earlier one Friday a month to spend time with family.

From TODAY, Business – Monday, 01-Jun-2009

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Market panic: Wild gyrations, risks and opportunities in stock markets

BRAIN FOOD

Stephen Vines

Should investors be dumping stocks just because it's a recession?

No, as there are always chances to take advantage of the downturn, says author and successful businessman Stephen Vines.

In Market Panic, Vines, a former journalist whose Hong Kong-based company Pan Britain provides consultancy services to major corporations in East Asia, takes a hard look at current trends and offers simple tips for succeeding in volatile markets.

He challenges some long-held theories about the benefits of investment diversification; offers new ways of understanding the panic cycle and teaches investors how to predict the onset of panics.

"Stock markets show remarkable resilience in the face of crises, scandals and all other forms of extreme behaviour," Vines writes. "If more people understand the opportunities arising from markets at their supposedly weakest moments ... the potential for profit is greater than when fear, irrationality and extreme behaviour dominate stock markets."

Vines provides real-life case studies by interviewing fund managers and traders, who tell how they were caught in market panics and how they countered these challenges head on.

The book is easy to follow and jargon-free, perfect reading material for the budding investor. ZUL OTHMAN

From TODAY, Business – Monday, 01-Jun-2009

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Emails and triggers

Some tips and pointers about e-mails, not only in the office, of course. This is applicable to anything about e-mails, office, home, or just anywhere else where e-mails are used as a means of communication.

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I HAD never thought of an email as a weapon of mass destruction. Not, that is, until I received a couple from different sources, both of which had me smoking from the ears.

They were abrupt, rude, insensitive and totally lacking in emotional intelligence. I used two words that rarely pass my lips to describe them. The second of the two was "off". Fortunately, I kept them to myself.

When my temperature returned to normal, I revisited the emails and examined them carefully. Both contained important information as well as the irritating prods at my integrity and ego. But I had to read them twice to get at the valuable facts because I first had to sweep away the emotional needling and control my instinctive violent reactions.

On examination, the writers had good points to make. Even the poorly expressed feelings were valid. In a calmer mood, I addressed them and took the heat out of the battle.

Not everyone is patient, and I see a lot of poor communication at the root of many of my mentees' problems. Inevitably, today, much of that communication is by email. So, why has the problem come about and what should our standards be?

The cause is always thoughtlessness. We write as we feel, to purge ourselves of the anger inside us. We should write so that the recipient reads, understands and reacts reasonably to our point of view.

We say what we want to say; we should say what we want the other person to hear and act upon in such a way that it will enhance our communication, not chop it off.

What I am saying applies to all communication, of course. Emails pose a particular problem. Their virtue is that they are fast. No envelope addressing and sealing, no stamp licking, no pause between writing and popping into the mail box.

The email's vice is that it is too fast. It has none of the previous pauses that allowed us to think twice about what we are sending.

To ensure that our email communication is effective in the way we intend, I suggest four thoughts about how we might compose these dangerous little bullets.

1 Before writing the email, make a note of (a) what you want the other parties to do as a result of your email and (b) what words you think are most likely to encourage them to do it. Those words will include acknowledgement, praise, kindly disposition as well as requests or orders. They will not include threats, real or implied, nor will they use emotive adjectives or challenging nouns. In particular, the word "trust" will be avoided; it is a double-edged sword.

2 We do not want to waste time — ours or theirs — but good communication is achieved when the pace at which we write is the pace at which the reader is likely to absorb and understand what we are saying. Emails that appear abrupt to the other person have failed even if they have said all you want to say.

3 The words we use to make our points should be as conciliatory and soothing as the message and context allow. Let the sun generate the heat; we should aim to soothe by cooling.

4 Greeting and closing. In a world of fast messages, we have lost the art of greeting. Nevertheless, when we are sending controversial or tricky messages, how you start and finish matter. The abrasiveness of the message can be much reduced by keeping the formalities civil. If we want to avoid our emails triggering the worst reactions, let them be at least polite.

John Bittleston mentors people in business, career and their personal lives at www.TerrificMentors.com.

Email your views to news@newstoday.com.sg

From TODAY, Business – Monday, 01-Jun-2009

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Obama seeks fresh start

Will this really trigger a change, an impact in the US, the whole world?

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WASHINGTON — President Barack Obama will journey to the centre of Arab-Muslim civilisation this week to begin the daunting task of draining deep mistrust of the United States felt across the Islamic world.

In Egypt on Thursday, Mr Obama will make a personal address to the world's Muslims, harnessing his own ancestral ties to Islam and globalising his message of change in a speech rich in trademark political ambition.

His trip comes as some observers scent a moment of opportunity amid the perpetual Middle East crisis.

But others see only peril, with a showdown gathering pace between Washington and Israel over Jewish settlements and no end in sight to Iran's nuclear drive.

This trip's first stop, on Wednesday, will be Saudi Arabia, for talks with King Abdullah, seeking Arab support for US peace efforts.

But the highlight will be the speech at the University of Cairo, co-hosted by Al-Azhar University, an ancient hub of Islamic scholarship.

Mr Obama may try to use the charismatic rhetoric which helped make him president as a balm for region-wide mistrust of the US.

"I want to use the occasion to deliver a broader message about how the United States can change for the better its relationship with the Muslim world," he said last week.

The speech will also be a promise kept — way back in the presidential campaign Mr Obama pledged to speak before a major Islamic forum.

In Egypt, he will make references to the Islamic faith of some of his paternal family in Kenya, time spent in Indonesia as a young boy and contacts with Muslim communities in Illinois.

"The President himself experienced Islam on three continents before he was able to visit, really, the heart of the Islamic world," said foreign policy adviser Denis McDonough.

Some analysts predict though Mr Obama may fall short. "There's nothing Barack Obama could say to Muslims on June 4 that will make the US popular and he shouldn't try," said Mr Jon Alterman, of the Center of Strategic and International Studies.

"America's underlying interests are simply not allied with the policies that many Muslims around the world would like to see the US pursue."

The US image in the Muslim world has been stained by the invasion of Iraq, stalled Palestinian hopes for statehood and Bush administration acquiescence in Israel's offensives in Lebanon and Gaza. AFP

From TODAYonline.com, World news – Monday, 01-Jun-2009; see the source article here.

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It’s time to revisit the dual citizenship issue: MP

IT HAS been a bone of contention here, but could dual citizenship be the carrot needed to draw talented foreigners to Singapore in this economic upheaval?

Member of Parliament (West Coast GRC) Cedric Foo urged the Government to "reconsider offering dual citizenship or other pull factors" to lure top talent to our shores.

Such a policy could target "a few hundred per year of the very top talent from all fields", and not thousands of foreign talent who would compete with Singaporeans for jobs, he said.

The current economic downturn presents Singapore with an opportunity to draw talent, as foreign companies unable to secure government funding may be scouting for greener pastures to relocate to.

Singapore can also bank on its reputation as a liveable city and the absence of language barriers, said Mr Foo. This select group of top talent would "add dynamism and we would do well to welcome them", he said. Neo Chai Chin

From TODAYOnline.com; see the source article here.

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Seeking the right balance

Changes coming up… watch for it. If I will have my say, it is that the people’s mentality will go a long way before any change can happen… locals have their ‘superiority complex’ and want to work as the boss, not the rank and file level… I could be wrong – until proven right time and again.
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Leong Wee Keat, weekeat@mediacorp.com.sg

MOST of the 45,000 new jobs to be created this year and next would go to Singaporeans, said Manpower Minister Gan Kim Yong in Parliament on Friday. The Government will create some 18,000 jobs in the public sector, said the Minister, with “a majority” for professionals, managers, executives and technicians. The other 27,000 would be regulated by the foreign workers’ quota system, he added.

Mr Gan was responding to a clarification raised by Opposition Member of Parliament Low Thia Khiang (Hougang GRC), who had asked how many of the 45,000 new jobs would be for locals.

Earlier, the minister outlined the Manpower Ministry’s plans in response to MPs debate on President S R Nathan’s opening address to the second session of the 11th Parliament. Even though it may be more challenging in a recession, Mr Gan agreed that there is a need to continue to encourage employers to recruit and retain older workers.

“The labour market will tighten once the economy recovers and it is important for companies to realise this and maximise their ability to tap on the contributions of their older workers,” he said.

At least five MPs raised the issue of challenges faced by older workers in the downturn.

The minister also addressed Mr Low’s concerns on what the Government is doing to put the welfare of Singaporean workers first. Mr Gan said the Government has “tilted the balance in favour of local workers during this downturn” by improving their employability through the Skills Programme for Upgrading and Resilience and enhancing their cost competitiveness through the Jobs Credit Scheme.

As for foreign workers, he said his ministry will support the new Economic Strategies Committee headed by Finance Minister Tharman Shanmugaratnam in looking at how Singapore can strike a balance and maximise the contributions from both the local and foreign workers.

Instead of looking at foreign manpower as competition, Minister in the Prime Minister’s Office Lim Swee Say said the local worker’s challenge would be to strive to be as good as the best in the world.

As to whether the Government has been overly protective of Singaporeans, Mr Lim — who is also the secretary-general of the National Trades Union Congress — felt “it is never enough” as far as employment and employability are concerned.

Mr Lim assured Singaporean workers that the tripartite partners — the Government, unions and businesses — would “not spare any effort” to cut costs, save jobs and contain retrenchment.

Parliament was adjourned to a later date.

From TODAYOnline.com; see the source article here.

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