Singapore Economic News

https://www.channelnewsasia.com/singapor...es-2959851

"Food inflation came in higher due to steeper increases in the prices of both food services and non-cooked food, hitting 6.4 per cent in August."

Inflation is pretty bad in Singapore and chief among it is due to imported food inflation. I am surprised that MAS has not appreciated its currency to guard against inflation

SORA is spiking in a span of 1 month, rates are up 0.5% to 2.4%.

https://eservices.mas.gov.sg/statistics/...Rates.aspx

This is particularly worrying for home loans as it means previously 2.9% interest is now 3.4%.

Banks are also stuck at fixed loan rates which they have guaranted for a 2 year duration at sub 2% levels. With SSB now at 3%, it is likely many banks will have very low margin profits because they need to up deposit rates and are stuck with low housing loan rates. A definite earnings recession is in the cards for the three local banks.

In the grand scheme of things. Banks will do fine, they might lose a little now due to low fixed housing rates Vs High current SORA but adjustment will come and will make up more than what they have "lost".

The bigger worry is when the spiking high interest rates causes a severe property price correction and bad debts. As a greater portion household income goes into servicng interest payments on housing loan, there is less disposable income. Hence overall spending/ economy will be affected. There are things MAS have little control over.

Yes! SORA has increased 2.25% in a span of one month. Today's SORA is at 4.3%. It will take another 60-90 business days before the full force will be felt in the 3 month SORA market (the benchmark for property loans, usually + 1%). Currently 3 month SORA is 2% and I expect it will progress to 4% in another 3 months time.

Property owners will be in a world of pain seeing their interest expenses doubling to the 5% mark. I am not sure how these banks will ask to re-price loans from REITs and Telecos, for info Starhub loans are at 2%, even if DBS offers the best SORA rates, Starhub will likely be forced with a 4% interest expense, unless someone decides to offer them a cheap shareholder loan

I mentioned in the thread link below that banks manage risk by ALM not taking duration risk. There will be some residual risk but generally not the main issue

Main issue is slower or negative loan growth as economy contracts and default risks increasing credit cost.

https://www.valuebuddies.com/thread-8835...#pid153975

(03-10-2022, 06:16 PM)CY09 Wrote: SORA is spiking in a span of 1 month, rates are up 0.5% to 2.4%.

https://eservices.mas.gov.sg/statistics/...Rates.aspx

This is particularly worrying for home loans as it means previously 2.9% interest is now 3.4%.

Banks are also stuck at fixed loan rates which they have guaranted for a 2 year duration at sub 2% levels. With SSB now at 3%, it is likely many banks will have very low margin profits because they need to up deposit rates and are stuck with low housing loan rates. A definite earnings recession is in the cards for the three local banks.

I think, at the end of the day, Singaporeans just want to live and get on with our lives like people in other developed countries ..... while we shd always upgrade/improve ourselves, I think there is a certain limit when we try to balance the other many demands/needs in our lives.

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Job security, healthcare costs top two concerns in poll on Forward Singapore topics
https://www.straitstimes.com/singapore/j...ore-topics
"....The area of economy and jobs was flagged by eight in 10 respondents, while three-quarters chose health and social support. Two-thirds of those surveyed chose home and living environment.

In contrast, the remaining three areas – education and lifelong learning, environment and fiscal sustainability, and the Singapore identity – were picked by less than half of respondents as areas of concern....."

S’poreans split on right balance of foreign workers and local job protection
https://www.straitstimes.com/singapore/s...protection

".....In contrast, the older generation faced the toughest competition and displacement in the labour market in the decades of immigration in the 1990s and 2000s, when attention to the protection of local jobs was not as strong as it is today.....

.....Strategic advisory consultancy BowerGroupAsia Singapore managing director Nydia Ngiow noted that even among younger respondents, a sizeable number believe the country has not struck the right balance....."

To achieve Singapore Dream / aspirations(non-settle)* :
1. High paying full-time job
2. Median full-time job + investing
3. Full-time investor
4. Others (pls state)

Answer (based on highest feasibility) = ?

-------------------

NUS student thinks she’ll earn $10,000/month after graduation
https://theindependent.sg/nus-student-th...raduation/

*The Singaporean Dream has Become an Illusion
https://www.augustman.com/sg/culture/sin...-angry-ho/

(07-02-2023, 07:42 PM)dreamybear Wrote: To achieve Singapore Dream / aspirations(non-settle)* :
1. High paying full-time job
2. Median full-time job + investing
3. Full-time investor
4. Others (pls state)

Answer (based on highest feasibility) = ?

-------------------

NUS student thinks she’ll earn $10,000/month after graduation
https://theindependent.sg/nus-student-th...raduation/

*The Singaporean Dream has Become an Illusion
https://www.augustman.com/sg/culture/sin...-angry-ho/

As high paying full-time job and/ or full-time investor requires high level of proficiency that may not be achievable by everyone, the highest feasibility for attaining the Singapore Dream may be to have as many income streams as you are capable of achieving. 

https://blog.seedly.sg/income-streams-types/

What a joke....

Dow said it was recycling our shoes. We found them at an Indonesian flea market
https://www.reuters.com/investigates/spe...dow-shoes/

Reminds me of Citiraya fraud but now involve govt agency...

(27-02-2023, 03:06 PM)Behappyalways Wrote: What a joke....

Dow said it was recycling our shoes. We found them at an Indonesian flea market
https://www.reuters.com/investigates/spe...dow-shoes/