Saturday, September 05, 2020

Free-Riding the Singapore Welfare System

Dealing with Free Riders 

The term "free-rider" is currently having its day on the Internet. As I've made a decision to many years ago to align more fully with our Capitalist system rather than the Political system, I think my actual aim is to find as many legitimate means to free-ride in Singapore, always put in slightly less to extract maximum benefits from the system.  

The truth is that the kind of moves I make are quite noob-level. An ordinary employee can use the following means to free-ride in Singapore today :

  • Open an SRS account, put in the maximum $15,300 every to get tax deductibles.
  • Inject $7,000 into you and your spouse's CPF-SA.
  • Take more public transport as it is running at a loss and funded by tax-payer money.
  • If you serve NS, use credits to buy New Balance running shoes. I even got a pair for my dad.
If you level up as an investor, you bring free-riding to a whole new level. Singapore is a welfare-state for the rentier. You can commit the following "tax atrocities" with no legal consequences :

  • Invest in securities as dividends do not flow into personal taxation numbers and are not accounted for qualifying for HDB ownership.
  • Buy REITs as REIT incomes do not even incur taxation at the corporate level when the REIT distributes 90% from rental proceeds.
I suspect incorporation will allow a person to level-up as a free-rider even further. I'm looking at the following schemes and studying them carefully and will consult a company secretary to make it high-priority for my business, do correct me if I am wrong : 
  • $200,000 of revenue does not attract taxes for the first three years.
  • Beyond the first $200,000, legitimate deductions for company expenses can be made. This is a 17% discount on cloud-hosting fees and software purchases which I already pay as an investment trainer. I can also buy an explicit PC or tablet to be used exclusively for work to free up my home PC resources.
  • I can pay myself a minimum salary to lower the tax burden more.  
  • If I hire a local worker, I can even get $30,000 under the Jobs Growth Incentive.
  • This is not counting the startup funding I can get for my business. I already have a small web app launched for my ERM community. 
In short, I think folks with legitimate business are the biggest free-riders of all. The government will incentivise Singaporeans to invent new jobs. 

For folks who can code in middle-age, incorporation is probably the best move a person can make given all this age discrimination we are facing. Given that I already have some revenue, I will probably incorporate, hire an assistant before even deciding what new business I will get into beyond investment training. 

What a great time to be alive in Singapore!



  1. Hahaha maybe that's why you see many SME's in singapore running losses or barely break even year after year, but the owners are all living in bungalows & driving Merz or Ferraris.

    A pte ltd is better than any structured vehicle a private banker can conjure up lol.

    In pro-biz pro-capitalist pro-finance pro-asset Singapore, one will have to be an idiot not to game the system & to freeload (there I said it!) as much as possible.

    In fact it's pretty rich for PAP to bring up free riding, seeing that a majority of MPs seemed to have free rided on the coattails of senior ministers into parliament. Of course they will argue where got free ride --- carrying balls is hard work you know!!!

  2. Hi Chris,

    I am not sure whether incorporation suits you provided that you want to start a legacy in the business. If you prefer to be simple, it might be a better approach not to opt for incorpration.


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