Jared_Seah
Jared Seah

I ARRIVED in Athens from Shanghai 36 months ago, full of excitement and anticipation.

A former colleague in Shanghai who came to work in Athens 3 months earlier had invited me to join her team at IKEA.

I imagined Greece would offer me a Hellenic adventure, a sharp contrast to the bustling financial backdrop of Shanghai where I worked for 4 years as a Supply Development Manager.

Imagine arriving in the land of the Greek mythologies that have been a part of my childhood growing up in a HDB home in Singapore.

Many a fantasy I’ve dreamed after reading the tales of Hercules, Jason and the Golden Fleece, the Cretan Minotaur and labyrinth, etc.

Alex_the_Great-1
Statue of Alexander the Great who created one of the largest empires of the ancient world. Photo by Jared Seah

Little did I expect I would have a front row seat to a different Greek “tragedy” whose curtains would draw open 18 months later…

I’ve travelled to a number of European countries on business trips before coming to Greece to work as a Supply Developer Specialist to develop and optimize the supply chain setups between our suppliers and retailers.

I was already aware of the higher cost of living in Western Europe compared to Singapore.

However, much to my delight the bus and metro fares in Athens cost only 1 Euro per ride! This is pretty much similar to the maximum fare in Singapore - but I wasn’t complaining, of course!

My relief was short-lived as the Greek sovereign crisis started to take its toll on the day-to-day cost of living. From the start of this year, the bus and metro fares were increased by a whopping 40% to 1.40 Euro per ride!

Escalating costs hit me on many fronts: petrol started to cost more, the sales tax (their GST) was increased from 19% to 23%.

However, it was the retroactive tax increase that upset me the most. During mid-2011, a “Solidarity Tax” was introduced on-top of the existing income tax. It’s effective for incomes earned from 2010 to 2015.

Hey! Even though I paid my 2010 taxes in full this April, I had to cough up an extra half-month’s pay this Sept for this “Solidarity Tax”. It ranges from 1 to 5% depending on income.

Guess what? If you were laid-off in 2011, you still have to pay this “Solidarity Tax” for 2010!

Despite these irritations, I am thankful that my housing and utilities were paid by my employer as everything else shot up in price! I cut down on eating out, cooked more meals at home, and dramatically reduced my discretionary spending.

Athens_wet_mkt-1
A wet market in Athens. Photo by Jared Seah

When I went out, I was saddened to see lots of small shops and eateries closing one by one. Here this week, gone next week.

Even the big boys got hit. Citibank closed 31 of its 72 branches in Greece.

The austerity pain and woes have driven up the suicide rate in Greece to the highest in Europe – a 40% jump over last year.

My Greek colleagues and their fellow citizens suffered in other areas: up to 25% pay cut for civil servants, pension cuts for retirees, layoffs in the public and private sectors. Many more austerity measures have been implemented and many are yet to come…

greek-riots-29-06-11
Greece has suffered countless demonstrations and riots. Photo: Internet

If I were a Greek worker, I would join them on the streets too! I watched many a demonstration with a small degree of detachment and lots of empathy.

To put some perspective to the income cuts, after Greece joined the European Union, the average Greek salary doubled without a corresponding increase in productivity.

As a result, you can imagine, for example, the Government-owned public transport losing money year after year – since “cheap” fares have to be paid by somebody one day.

Inefficiency is also another name for the bloated civil service. To get my work permit, I’ve lost tracked of how many Government departments I’ve had to visit to get my “stamps” of approval… It was so “complicated” that from the 2nd year onwards, my company engaged a consultant to assist all future new foreign workers – yup, I was the guinea pig that paved the way for others after me.

Unproductive. Inefficient. Another word to describe Greece is ‘retire young’. Before the crisis, you could retire in Greece as early as 50 with pension if you met certain conditions. Greece had one of the youngest retirement ages in Europe then. 

Funny how a little perspective changes everything…

Greek_ruin
Ancient Theater of Epidaurus which was constructed in the late 4th century BC for dramatic performances.Source: http://www.travelpod.com/

 

 

At the start of the crisis 18 months ago, I noticed some financially savvy Greeks were buying Romanian gold or converting their savings to Swiss francs in Swiss banks.

If Greece were to switch back to the Drachma today, these “quick-movers” would be less affected by a devaluation of their currency. Comparing how gold prices and the Swiss franc have strengthened against the Euro today, you can say they have even “profited” from this crisis!

There continues to be a lot of money being withdrawn from Greek banks to be deposited abroad or stashed at home.

Mental note to myself: When change happens, don’t just stare at the writing on the wall and do nothing!

White_tower_Greece-1
Esplanade at Thessaloniki. Photo by Jared Seah

Unfortunately, I won’t be around for the climatic ending of this Greek “tragedy” that’s playing before the whole world. I shall return to Singapore on 31 Dec 2011 on Singapore Airlines for my next adventure back home as my work contract has expired. I have worked a long time -- 14 years -- for IKEA.

Side note: It’s the story of my life (as a bad market timer)... Of all the years, I choose next year to be a free agent! Now I really have my back against the wall - no way to go but forward! Onwards!

Despite widespread pessimism over the crisis, I have faith that my proud and nationalistic Greek hosts will overcome this winter of discontent. It’s in their genes.

Greece was the cradle of European civilization. It introduced democracy to the world, and defeated the Persians in two epic wars that helped to protect Western civilization. It bravely fought and gained independence from the Ottoman Empire, and overcame the Military junta in the 1970s.

I believe in the indomitable spirit of humanity!


Jared Seah, 44, writes regularly on his popular blog, http://singaporemanofleisure.blogspot.com/, which has many postings on a wide range of financial and non-financial topics

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Comments  

#20 Jared Seah 2012-06-24 09:56
Hello Karen,

Thanks! I'm sure you and Hans have lots of stories to share of your time in Singapore and Athens too :-)

Cheers!
#19 karen Rydhog 2012-05-23 17:07
Very interesting reading, Jared. Thank you very much. Why have you never told us that you have so many interesting things to tell? Regards from Karen in Athen (Hans' wife)
#18 Jared Seah 2011-12-29 10:27
Alicia mei mei,

I've always loved a vigorous debate! Looking back a bit silly right? We "fighting" to make Invar richer... Glad you and I are now "free agents" looking out for number 1 - as the Americans wouild say :-)

Eh... Don't call me uncle leh! I now undergoing my male menopause. You cut me deep. LOL!
#17 Alicia koh The Sing-a-pore girl 2011-12-28 20:02
Waaa... This 'virgin' attempt of yours makes those long 'fighting' emails that we used to exchange a year ago at Inter-IKEA look like mickey mouse's work! Never know uncle can write so well! My jaw dropping now. All the best to your next adventure n I know if u focus, you will make it, Look like u want to retire even younger than the Greeks!
#16 Jared Seah 2011-12-28 11:44
A big cheers and wink to you Joan! You must be the butterfly with iridescent colours on your wings. An angel of the light. We both can see the colours and wonders of the rainbow. I am a rainbow chaser
#15 Joan 2011-12-28 06:09
Hi Jared, An interesting article. Also a colorful life. You have projected a very positive and can do spirit in your article. A valuable asset.
#14 Jared Seah 2011-12-27 10:33
Yes Cory! 3 more days to ROD!

If I visit Taipei, need your help to guide me to Yang Ming Shan and Beitou's hot springs! And introduce me to your TW's mei mei ;-) Don't pretend! Ask if she got sister OK? LOL!
#13 Jared Seah 2011-12-27 10:30
Thanks Panzer!

I "cheat eat, cheat eat" only lah! I am more a retail salesman. If I do get back to work (plan B), I think it's more likely you will see me on the selling floor. Lelong lelong!

Coffee is on! I'll let you know when I've settled in.
#12 Cory 2011-12-27 04:56
That's 3 more working days ! Cheers
#11 Panzer 2011-12-27 03:57
Hi Jared, Your skills and experiences would be valuable to many of the supply chain or logistics companies in SG. :-) Singapore welcomes back a true talent in every sense of the word. We should meet for kopi once you've settled down back in SG. Be well and prosper.
#10 Jared Seah 2011-12-26 14:09
Kaypoh, Wow, you maciam like interview son-in-law. LOL! Let's say that I am able to save in 1 year working overseas what it took me 3 years to do the same in Singapore.

Before working in Athens, I worked 4 years in Shanghai. So 7 years overseas for me is equivalent to 21 years savings in Singapore. It helps that "ah kong" pays for most things. Not that I earn a lot; it's more I low maintenance. No car, stay in 3 room HDB, etc. I am a HDB heartlander.
#9 Kaypoh 2011-12-26 13:06
Jared, congrats on everything. Just curious about the pay in Greece -- how much did IKEA pay u? Or if u r shy abt it, what sort of multiple was it compared to a similar post in IKEA in Singapore?
#8 Jared Seah 2011-12-26 11:40
Hej Jonas! Tack! Hope to see you in Singapore too! Coffee OK? Now I switch from forecasting sales to forecasting prices? Good times! 14 years...Adjö! But its more aloha!
Jared Seah
#7 Jared Seah 2011-12-26 11:34
LOL Temperament! How nice if someone would focus on my photo and say: "Give that kojak man a hand and some cheers!" Hand and some = Handsome!? I narcissistic or what?
#6 Jonas Carlsson 2011-12-26 11:33
First of all God Jul Jared.
Wounderful written Article, Wish you all the best in Singapore, Hope to see you there.
Greetins gtom Sweden
#5 Temperament 2011-12-26 10:50
Hi Jared,
Excellent article. i mean about Greece not you O. K. Ha! Ha! i enjoy.

You said,"I hang my head in shame as my next phase in life is not exactly in accordance to the Lutheran work ethic... "
Hey, who says that to you?
You are helping the world to allocate capital resources to the more efficient businesses. No doubt you are only a retailer but it still counts. It's just a different kind of work. Besides, you are really risking your $capital$.
You should be proud of it. i mean how many people even they have the capital, dare or are ready to take the risks in the "capital allocation markets"?
#4 Jared Seah 2011-12-25 10:25
Joyful tidings to you MacGyver! Yes, no one owe us a living and we all should earn our own keep. I hang my head in shame as my next phase in life is not exactly in accordance to the Lutheran work ethic...
#3 Jared Seah 2011-12-25 10:17
Merry Christmas Esther!

I don't like to use the word "retire" as it sounds a bit negative and down. Reminds me of going to bed...

I will manange my own investments and live off the passive income. Do a bit of swing trading here and there, a dash of writing maybe at my blog, travel a wee bit, and gorging myself silly on our beloved hawker food!

Now that I've seen the other side of the fence (I was 4 years in Shanghai too), there'a lot I can do in Singapore! Stay tuned. I'll blog about them soon :-)
#2 MacGyver 2011-12-25 09:15
Excellent real happenings written out. It is a reminder to us that we should not take the present status for granted and should continue to work hard.

Retire at 50 ?? I pity those Greeks now.
#1 Esther 2011-12-25 06:21
Wah, what a fantastic experience! so what will you do back in (boring) Singapore?

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