• All blog entries
    • Calculators
    • Case studies
    • Cost of living
    • CPF Are You Ready?
    • CPF Matters
    • Credit Management
    • e-Learning
    • Estate Planning
    • Events
    • Financial advisers
    • High Networth
    • Insurance
    • Investments
    • Letters to the Press
    • Magazines
    • Others
    • Retirement Planning
    • Scams
    • Surveys
    • Tragic Stories
    • Unethical sales process
    • Videos
  • Legal
  • Testimonies
    • Individual testimonies
    • Gallery
  • My Account
Hi, looking for a fee-based financial planner in Singapore? Read this article now!
  • Home
  • About
    • About Wilfred Ling
    • Why do you run your own professional financial planning practice?
  • FAQs
    • FAQs on Wilfred Ling’s Financial Services
    • FAQs on Financial Planning
    • FAQs on Investments
    • FAQs on Insurance
    • FAQs on Estate Planning
  • Services
    • Overview
    • Create a financially secure plan for your young family (package details)
    • Retirement Planning
    • Investment Portfolio Management
    • Insurance Planning
  • Fees
  • Cool Tools
  • Contact
  • Subscribe
You are here: Home / Estate Planning / Nicoll Highway collapse accident and lessons parents can learn

Nicoll Highway collapse accident and lessons parents can learn

18, August 2014 by Wilfred Ling Leave a Comment

nicoll highway collapseIn 2004, a catastrophic construction accident happened when a MRT tunnel collapsed. The tunnel supposed to be part of the Circle Line and Nicoll Highway. 4 workers were killed and 3 injured. All six lanes of the Nicoll Highway were heavily damaged.

The partially built MRT was abandoned and shifted 100 meters from the original site. The Nicoll Highway MRT station is now located just few minutes’ walk from Keypoint Building (which eventually will be demolished to make way for a City Gate in 2015).

Nicoll Highway collapse hero

One of the victims was Mr. Heng Yeow Peow (then 40). Mr. Heng Yeow Peow was reportedly had selflessly helped his workers to safety but himself was trapped and died when the Nicoll Highway collapsed.

Mr. Heng Yeow Peow left behind his wife, two young children, his 70-year-old mother and nine siblings.

His children were 10 and 8 then. His wife, Mdm. Poa Beng Hong was just 35 years old.

Recently, there were more details of how the family was coping after the Nicoll Highway collapse.

From public donations alone, $630,000 was raised. This amount was not given to Mdm. Poa Beng Hong directly. Instead, Tampines GRC MP Irene Ng setup a trust fund. Initially the trust fund provided the family $2,000 every month which was equivalent to Mr. Heng Yeow Peow’s salary plus overtime. Later on the trust fund increased the amount to $2,500. The amount will be increased to $3,600 in 2015 and $4,500 in 2016 to take into account of increased expenditure due to the children’s higher education. By 2019, whatever remaining of the trust fund will be given to the family in equal share.

Separately, the family was awarded $410,000 in compensation in a civil suit for the Nicoll Highway collapse involving the three construction firm. Half of the amount is shared among the two children and is placed with the Public Trustee which provided $500 per month per child until they are of legal age.

Mr. Heng Yeow Peow’s employer also bought education (insurance) policies for his two children.

Tampines GRC MP Irene Ng – the savvy financial planner

From what I see, Mdm. Poa Beng Hong was very fortunate to have been helped by Tampines GRC MP Irene Ng. Ms. Irene Ng had the foresight to setup a trust fund after the Nicoll Highway collapse. Obviously the MP was financially savvy and knew the important of wealth preservation and estate planning. Ms. Irene Ng also knew whom to approach to have the trust deed drafted and appointed a reliable trustee to manage the trust fund. The initial regular payout of $2,000 is interesting because its intention is to replace the loss of income directly.  The increased in regular payout over the years reflect the need for inflation adjustment and to take into consideration of increased expenditure when the kids grow up. The entire arrangement sounds like it was arranged by a professional financial planner. But from what I understand, MP Irene Ng does not even have any experience in financial planning.

Mdm Madam Pusparani’s financial adviser – the not so savvy financial planner

If we compared this to another case - Madam Pusparani, widow of killed Changi Airport worker. She spent $1 million worth of public donations in less than 2 years! Although she used most of it to buy 4 insurance policies for her children, her financial adviser did not place these policies into an irrevocable trust. As a result, she surrendered the policies in less than 2 years, squandered the entire amount and incurred the anger from the public.

The difference between both cases is quite interesting.  MP Irene Ng does not have any finance background. In fact, she spent a large part of her career working as a journalist with Singapore Press Holding. She does not even have any financial planning qualification.

I want to stress to existing parents that your family may not be so lucky to have MP Irene Ng to help them. Whatever you left behind could be squandered by many parties – your spouse, your spouse’s new spouse, your children, your siblings and even their financial advisers could overlook certain matters resulting in the entire’s family wealth gone. Do not leave it to chance and luck.

Do not rely on anyone to do the planning for you. You should take the initiative and plan.

Reference sources:

  1. http://news.asiaone.com/news/singapore/widow-who-squandered-1m-lawyer-says-donors-have-little-control?page=0%2C2
  2. http://www.straitstimes.com/news/singapore/more-singapore-stories/story/nicoll-highway-widow-money-trust-fund-pays-childrens-upk

Like this article? Subscribe to my newsletter below for more.

Get regular Tips on Financial Planning. Free subscription for 3 years. Covers all aspect of financial planning such as 'How much salary you should have?', 'How to avoid insurance that is not suitable?", 'What are the retirement planning methods?", etc

Share this:

  • Tweet
  • Print

Related

Filed Under: Estate Planning, Tragic Stories

What do you think? Leave a comment. Cancel reply


WILFRED LING, CFA

WANT TO GET REGULAR TIPS ON FINANCIAL PLANNING?

JOIN with thousands of other subscribers in getting tips on all aspect of financial planning such as "What is the minimum salary required?", "How avoid insurance that is not suitable", etc.


WILFRED LING IN THE NEWS

Click HERE to find out more.


THE KIND OF CLIENTS I AM LOOKING FOR

NEW TO US?

Learn how you can fully benefit from this massive website: HERE

For Registered Users Only (free)

  • Webinar on 7 Real Stories To Achieve Your Financial Freedom 6/6/2023
  • Webinar on Major change in cancer treatments in your integrated shield plans 3/9/2022
  • How and what to invest now? (Webinar) 28/7/2022
  • How to identify high performing unit trusts in 3 steps (Webinar) 3/9/2021
  • Financial Planning – Christian Perspective Part 2 (Webinar) 14/8/2021

View All

For Clients Only

  • Video Message to Clients 30/12/2021
  • Exclusive client-only Investment Update Webinar by Wilfred 26/11/2021
  • JPMorgan Guide to Market Q2 2020 15/4/2020
  • JPMorgan Perspective Q2 2020 15/4/2020
  • JPMorgan Guide to Market Q1 2020 5/2/2020

View All

Recent comments

  • mah weng kong on Is PruSelect Vantage plan a good or bad product?
  • Rafi on Wilfred Ling’s Story, the beginning
  • ECE7 on Wilfred Ling’s Story, the beginning
  • Tan Boon Seng on What is meant by pre-existing conditions in real life?
  • Kapil Verma on 70% loss because insurance agent did not provide review for 11 years
  • Ng Ricky on 60’s with no dependants – which insurance is a must have and nice to have?

To be notified of new blog post, like this facebook page

To be notified of new blog post, like this facebook page

Read articles based on different categories

Chartered Financial Analyst

CFA

Chartered Financial Consultant

ChFC

Featured Blogger

IM$avvy

© Copyright 2006-2023 Wilfred Ling

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore

hollow-nasty
hollow-nasty
hollow-nasty
hollow-nasty