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Singapore Economic News
09-03-2018, 12:35 PM.
Post: #221
RE: Singapore Economic News
Strong hiring outlook in Singapore continues into 2Q18

By: Michelle Zhu
09/03/18, 11:00 am

SINGAPORE (Mar 9): Singapore’s employers are continuing to indicate a strong hiring outlook for 2Q18 with 16% intending to hire during the quarter ahead, according to data from workforce solutions company ManpowerGroup’s latest ManpowerGroup Employment Outlook Survey (MEOS).

Out of the 695 employers surveyed in Singapore across seven industry sectors, 5% forecast a decrease in staffing levels while 72% anticipate no change over 2Q18.

It is however worth noting that workforce gains are anticipated across all industry sectors for the period amid a favourable hiring climate, which was observed by ManpowerGroup to have continued since 4Q17.

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Specuvestor: Asset - Business - Structure.
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27-03-2018, 03:38 PM.
Post: #222
RE: Singapore Economic News
MAS expected to tighten monetary policy in April: Reuters poll

By: Reuters
27/03/18, 02:29 pm

SINGAPORE (Mar 27): Singapore's central bank is expected to tighten monetary policy in April for the first time in six years, with economic growth solid and the labour market showing signs of improvement, a Reuters poll of economists found.

Nine of 15 analysts said their baseline expectation is for the Monetary Authority of Singapore to tighten its exchange-rate based policy at its semiannual policy decision, expected to be announced in mid-April.

The poll was conducted between March 21 to March 27, and was based on direct responses to Reuters queries as well as some research notes.

The nine analysts expect the MAS to tighten policy by slightly increasing the appreciation rate of the Singapore dollar's policy band, which is currently at zero percent.

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06-01-2019, 11:47 AM. (This post was last modified: 06-01-2019, 11:50 AM by karlmarx.)
Post: #223
RE: Singapore Economic News
********************* 95Q1     00Q1     05Q1     10Q1     15Q1     18Q3

Singapore GDP                  28.9      38.1       50.3      76.7       102.7     116.1          (in billion SGD, at current market prices)

Household Networth          425       569        672       1,079     1,503     1,844          (in billion SGD)

As a Percentage to Total Assets:

Liabilities                         13.0       18.6       19.1       15.1       16.4       15.0
Currency & Deposits         16.4       16.5       16.5       18.4       19.7       19.7
Listed Securities               5.1         3.6         4.8         5.6         5.0         4.1
UT & Inv Funds                0.2         0.9         3.5         2.9         3.2         3.8
Life Insurance                  1.8         3.6         8.4         7.9         7.8         8.5
Public Housing                 24.8       29.3       24.7       24.7       21.9       19.3
Private Housing               33.9       24.6       21.1       23.0       23.8       24.3
CPF                                12.2       12.8       13.8       13.5       15.6       17.6

I was curious about how much of Singaporeans' wealth are in the stock market, so I pulled out some data dating back to 1995 from the Department of Statistics. I looked at the proportion of the different asset classes across time, by comparing each asset class against the total assets. The above is an abbreviated version, and percentages were derived from the absolute figures. The raw data is available from the links. 

The data is an aggregate, not average, of all households in Singapore. This means that certain household may have a higher/lower proportion in certain assets. For example, lower income groups are likely to have higher proportion in housing, than what is shown here.

Some observations:

1. Proportion of liabilities remains stable.

2. Proportion of wealth in private and public housing has fallen from almost 60% to about 43%. 

3. In place of housing, several other financial assets increased in proportion. The proportion of wealth in CPF has increased from 12.2% to 17.6%.

4. Proportion of wealth in life insurance has increased from 1.8% to 8.4% in 2005, and has remained at about that level.

5. Proportion of wealth in unit trust and investment funds increased from 0.2% to 3.5% in 2005, and has remained at about that level.

6. Proportion of wealth in currency and deposits has increased slightly from 16.4% to 19.7%.

7. Proportion of wealth in listed shares and securities has remained similar, decreasing slightly from 5.1% to 4.1%.

Some comments:

I believe much of the changes observed are heavily influenced by government policies; mainly the continued changes to CPF's offering and minimum sum, and the hawkish approach to multiple home ownership and its related debt. The liberalisation of the financial services industry, such as the introduction of bancassurance, must have also been instrumental in channelling more wealth into insurance and unit trust products. 

As for the listed stocks and securities, it seems that it wasn't a particularly popular asset class in 1995. And that doesn't seem to have changed since. This could be another evidence to support the argument that Singapore stocks are not richly valued.

Meanwhile, liabilities are at an acceptable level, cash proportion is at healthy. Singapore's household balance sheet looks alright. If Singapore can be considered to be in a good shape to withstand the carnage of the 2008 GFC, it can probably withstand the next financial crisis of similar magnitude, given its more balanced allocation of assets (i.e. less percentage of wealth in housing).

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