Economic News

[PuteriWorld]

Well said Wuqi. In the property cycle there are ups and downs. I myself has been the subject of intense criticism when I first throw my life saving of S$50k into Iskandar. Most ( in fact ALL ) said I will be a bankrupt. Many said JB is a cowboy town and robberies are rampant etc. That's why no one will stay in JB. During those times the prices of semis Ds are just RM 400K ( compared to RM 2 million now ) and yet naysayers make it sound like there will be rows and rows of empty houses.

Fast forward, all these naysayers are still saying the same thing from their HDBs and that JB is dangerous. Over supply etc etc. You surely will be chopped once u drive inside. I am glad I am still in a piece. Its always wise to be able to hold LONG TERM. This is what I learnt when I dispose my first property within a month of TOP and had a small profit of just S$30k. The rest who held on for 2 more years had $250K profit. Very important lesson I learned in property investment is to be able to conceptualise the long term crowd. It will surely be empty for the first 1 or 2 years but if u are smart enough to hold on for 3-5 years before deciding whether to sell or hold, it will make you a wiser man.

Another thing I learned is not to be jealous when others are buying and when you got no money to buy. Rather, keep quiet and learn from people. Learning from people is much better than standing at one corner to demean others and hoping others will be a bankrupt. These people will forever be the naysayers. The good thing about them is that when they retire, they can fully paid their Spore HDBs flat and recover their CPFs ( If their money are still there that is ) Safe and sure.

I agree from the perspective of someone who has a few running businesses now, majority of the businesses here has been slowing in many areas recently and this can be felt across the board and not just in property. People are not into spending as much as previous years and it can be seen in the changes in spending habits as well as the "wei ya" (end of the work year/annual dinners) that are popular here. I have been invited and attended 6 the past couple of weeks and every single one has scaled down significantly.

Maybe from my past unfortunate experience, i have learned not to assume something when i know it is not true and the more i knew, the more concerned i was for a time. We will call a spade a spade.

Although i am finally in the property line (very late arrival as i have desisted for the longest time, participating earlier only in super minor roles for projects in deference to a past friend), there is no point in drumming up something, properties will always have their cycles of growth and bust in any country and perhaps one of the factors propping or dampening prices are the rental rate and to long term investors, the yield one is able to get. The trick is to let go when its time or hold steadfast all the way (if one can manage it).

Thanks to a combination of the weakening ringgit, central bank and banking policies, certain other (perhaps not so well advised) policies, arrogance for some across both sides of the borders, global oil slump and the advent of the GST in April coupled with April being a tax month could lead to a perfect storm if allowed to brew unchecked. Already it has taken its share of victims with some businesses already closing down. In terms of the view from the macro front, with the subtle changes, a new world order may yet surface and both countries and indeed ASEAN itself may need to increasingly step up cross border cooperation. The last time the price of oil was allowed to fall so low (if memory served me correctly), it affected one of the super powers so badly that it disintegrated and the balance of power shifted. A new demon or scapegoat had to be found to fuel the war economy on which so many countries depended upon.

Maybe finally now with lesser Singaporeans coming in across the borders, fewer will point their finger at them for the increase in prices, etc. Surprisingly to some of my learned friends, meanwhile some other countries are stepping up on investments in Malaysia. It is not all doom and gloom however, the weakening ringgit is seen as an invitation to some to get into the game at lower prices as compared to just a few months ago. As well, with the pricing of oil and thus transport being low, it would offset some of the changes and impact that the GST roll out will have. Failure breeds success, hopefully those who can do something about it can still do so, it is already late enough.

Quite a number of the new talents in Singapore are setting up their homes in Malaysia and making the daily commute, from my very limited experience, the rental market has seen a marked increase as compared to the same quarter last year so perhaps it is a time for some to reconsider their options and to either liquidate or to hold on for rental yield.

 

[snowbird]

I agree from the perspective of someone who has a few running businesses now, majority of the businesses here has been slowing in many areas recently and this can be felt across the board and not just in property. People are not into spending as much as previous years and it can be seen in the changes in spending habits as well as the "wei ya" (end of the work year/annual dinners) that are popular here. I have been invited and attended 6 the past couple of weeks and every single one has scaled down significantly.

Maybe from my past unfortunate experience, i have learned not to assume something when i know it is not true and the more i knew, the more concerned i was for a time. We will call a spade a spade.

Although i am finally in the property line (very late arrival as i have desisted for the longest time, participating earlier only in super minor roles for projects in deference to a past friend), there is no point in drumming up something, properties will always have their cycles of growth and bust in any country and perhaps one of the factors propping or dampening prices are the rental rate and to long term investors, the yield one is able to get. The trick is to let go when its time or hold steadfast all the way (if one can manage it).

Thanks to a combination of the weakening ringgit, central bank and banking policies, certain other (perhaps not so well advised) policies, arrogance for some across both sides of the borders, global oil slump and the advent of the GST in April coupled with April being a tax month could lead to a perfect storm if allowed to brew unchecked. Already it has taken its share of victims with some businesses already closing down. In terms of the view from the macro front, with the subtle changes, a new world order may yet surface and both countries and indeed ASEAN itself may need to increasingly step up cross border cooperation. The last time the price of oil was allowed to fall so low (if memory served me correctly), it affected one of the super powers so badly that it disintegrated and the balance of power shifted. A new demon or scapegoat had to be found to fuel the war economy on which so many countries depended upon.

Maybe finally now with lesser Singaporeans coming in across the borders, fewer will point their finger at them for the increase in prices, etc. Surprisingly to some of my learned friends, meanwhile some other countries are stepping up on investments in Malaysia. It is not all doom and gloom however, the weakening ringgit is seen as an invitation to some to get into the game at lower prices as compared to just a few months ago. As well, with the pricing of oil and thus transport being low, it would offset some of the changes and impact that the GST roll out will have. Failure breeds success, hopefully those who can do something about it can still do so, it is already late enough.

Quite a number of the new talents in Singapore are setting up their homes in Malaysia and making the daily commute, from my very limited experience, the rental market has seen a marked increase as compared to the same quarter last year so perhaps it is a time for some to reconsider their options and to either liquidate or to hold on for rental yield.

Yes, the keyword here is be CAUTIOUS and go in with your eyes wide open.
Know the current situation economically and also politically and policies that might affect investors.
Don't buy just because he bought, she bought, and they all had already bought.
And don't be sold to sleek brochures, carefully crafted multimedia presentation and luxurious showrooms.
Know the pros and cons, where are the pitfalls, how long can you hold, are you going in at the right time or a Johnny come lately case?

 

[bakkuttay]

lhl has prostate cancer. will it affect the economic agreements with malaysia????

 

[snowbird]

lhl has prostate cancer. will it affect the economic agreements with malaysia????

Bilateral agreements are not exactly between head of state but rather between governments, so no major problems if everything had been mutually agreed.
However, prostate cancer will definitely affect sexual performance for a while!!!

 

[bakkuttay]

However, prostate cancer will definitely affect sexual performance for a while!!!

Hahaha!!!! Oops, no worries for hoching with her billions, everything possible.

 

[enjoylife77]

There is Ad valorem tax for petrol: RON95 is $0.41, RON98 is $0.45/litre

Latest Ad valorem tax for petrol: RON95 $0.56 RON98 $0.64/litre

 

[FHBH12]

Singapore Budget 2015: 15 things to cheer about (and 4 things which some won't)
PUBLISHED ON FEB 23, 2015 7:03 PM

SINGAPORE - Singaporeans expected a Jubilee Budget to celebrate Singapore’s 50th year of independence.

While Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam did not quite frame his announcements as Jubilee Year giveaways, the Budget announced on Monday gave middle-income families, older Singaporeans and companies quite a bit to be happy about.

Here are 15 things to cheer about in Budget 2015:

1. Money to improve your skills via new SkillsFuture scheme

Every Singaporean aged 25 and above will get an initial $500 of SkillsFuture Credit from the Government, which will be topped up at regular intervals and will not expire. They can either choose to go for a short course with the $500, or accumulate credits for more substantial training in the future.

2. Cut in maid levy

From May 1, households eligible for the Foreign Domestic Worker Levy Concession will enjoy a further discount on the monthly levy. Employers of foreign maids now pay $265 a month in levies, or $120 if they qualify for a concessionary rate. The concessionary rate will be cut to a mere $60.

3. More money in your CPF

The income ceiling for CPF contributions will be raised from $5,000 to $6,000 from next year onwards.

An additional 1 per cent interest will be applied to the first $30,000 of CPF savings for those aged 55 and above next year, on top of the existing 1 per cent extra interest on the first $60,000 of savings. This means that the first $30,000 in Special, Retirement or Medisave accounts can earn up to 6 per cent interest.

4. Silver Support Scheme to help lower-income elderly

Under the Silver Support Scheme, the bottom 20 per cent of Singaporeans aged 65 and above will get payouts of between $300 and $750 every three months. The average low-income senior citizen will receive $600.

They will be automatically eligibile. Amounts will depend on their lifetime wages, housing type and household support. The Silver Support Scheme will be implemented around the first quarter of 2016.

5. Seniors’ bonus

In the interim before the Silver Support Scheme is in effect, senior citizens who are aged 65 and above, live in Housing Board flats, and whose assessable income for 2014 is $26,000 or less, will receive a one-off “Seniors’ Bonus”.

The bonus of either $150 or $300 will be in the form of Goods and Services Tax (GST) vouchers and will be on top of the vouchers for those aged 21 and above. The amount seniors will receive will be based on the annual value of their home as at Dec 31, 2014.

6. $50 more in GST Vouchers

1.4 million Singaporeans will get $50 more in Goods and Services Tax (GST) Vouchers from this year. The increase in GST Voucher quantum across the board means that eligible individuals will receive up to $300 in cash.

The GST Voucher, introduced in 2012 to help lower- and middle-income households with their expenses, is given in three parts - cash, Medisave and Utilities-Save, which provides HDB households with a rebate to offset their utilities bills.

7. Personal income tax rebate

Taxpayers will enjoy a one-off tax rebate of 50 per cent, capped at $1,000, for the year of assessment (YA) 2015 for income earned in 2014. Some 1.5 million taxpayers will benefit from the rebate.

8. Waiver of exam fees

Examination fees for Singaporeans sitting for national exams in Government-funded schools will be waived from 2015. This covers fees for the Primary School Leaving Examination (PSLE), and GCE N, 0, and A levels. Students and their families will save up to $900 for these exams.

9. More affordable childcare

The Government will start a new Partner Operator Scheme to complement the Anchor Operator Scheme for child-care centres.

10. Road tax rebates

Drivers will enjoy a one-year road tax rebate of 20 per cent for cars, 60 per cent for motorcycles and 100 per cent for the small number of commercial vehicles using petrol.

On the downside though, petrol duty will go up, but the road tax rebate will offset about two-thirds of the impact of that.

11. More tax deductions for donations made

Tax deductions for donations made this year will rise from 250 per cent to 300 per cent.

12. Wage credits for companies

The Government is extending the Wage Credit Scheme (WCS), which was set to expire this year, to 2016 and 2017, but at half the current rate of subsidy. The move is to give Singapore employers more time to adjust to the tight local labour market as they continue to restructure.

In the next two years, the Government will co-fund 20 per cent of the wage increases that are given to Singaporean employees earning a gross monthly wage of up to $4,000. This is down from the current 40 per cent subsidy for the unchanged wage segment.

13. Tax rebate for companies

Companies will get a 30 per cent rebate up to a cap of $20,000 on their payable taxes for the year.

14. More support for local firms to go global

The Government announced three measures to support local companies to internationalise - a key strategy to help them grow their revenue.

First, the Government will raise the support level for small and medium enterprises (SMEs) for all activities under IE Singapore's grant schemes from 50 per cent to 70 per cent for three years.This will benefit about 700 projects.

The Government will also enhance the Double Tax Deduction for Internationalisation scheme to now cover salaries incurred for Singaporeans posted overseas. This will provide greater support to companies venturing overseas, by co-sharing their risks and initial costs of expanding overseas, as well as creating skilled jobs for Singaporeans.

The third measure is a new tax incentive, the International Growth Scheme (IGS), to provide support to meet the needs of larger Singapore companies in their internationalisation efforts.

Qualifying companies will enjoy a 10 per cent concessionary tax rate on their incremental income from qualifying activities. It will encourage more Singapore companies to expand overseas, while anchoring their key business activities and HQ in Singapore

15. More tax revenue

The super-wealthy won't be smiling, but the rest of the population will. The tax rate for those in the top bracket of incomes will go up, and is expected to raise additional revenue of $400 million a year when it comes into effect.

For those with a chargeable income above $320,000, the tax rate will go up by 2 percentage points to 22 per cent in 2016 from 20 per cent currently, with smaller increases for others in the top 5 per cent.

4 things some won't be too happy about

1. Top earners to pay higher income tax

Marginal tax rates will go up for the top 5 per cent of income earners who earn at least $160,000.

For those with a chargeable income above $320,000, the tax rate will go up by 2 percentage points to 22 per cent from 20 per cent currently, with smaller increases for others in the top 5 per cent. For someone earning $250,000 a year, his effective tax rate will increase from 8.3 per cent to 8.5 per cent, with additional tax payable of $400.

This will take effect in Year of Assessment 2017.

2. Higher petrol duty charges

Petrol duty rates, which have remained unchanged since 2003, will go up, with immediate effect. Duty rates for premium grade petrol will be increased by $0.20 per litre, and intermediate grade petrol by $0.15 per litre.

But because of falling oil prices, pump prices after the petrol duty changes would remain lower than the levels in the last two and a half years.

3. Companies to contribute more CPF for older workers

From Jan 1, 2016, CPF contribution rates for workers aged 50 to 55 will match the level of those younger than them. The contribution rate for these workers will go up by 2 percentage points - 1 percentage point from the employer, and 1 percentage point from the employee. Employer contribution rates for those are older than 55 will also go up.

To help companies absorb the cost increase, the Temporary Employment Credit will be extended by two years, and will be raised to 1 per cent of wages from the current 0.5 per cent, among other things.

4. Productivity and Innovation Credit (PIC) Bonus scheme will not be extended

The scheme, which was introduced to encourage businesses to take advantage of the main PIC scheme, will not be extended after this year. This is because the transitional measure has been successful in spreading the culture of productivity amongst small and medium enterprises.

- See more at: http://www.straitstimes.com/news/si...ngs-cheer-about-20150223#sthash.CQX9aWpD.dpuf

 

[RedsYNWA]

MY should consider to follow this new rental deduction method to be adopted by SG. Will make tax reporting a breeze.

Simplified claim for rental expenses
Individuals may claim the rental expenses based on 15% of the gross rental income in lieu of the actual amount of deductible expenses (excluding interest expense). This takes effect from YA 2016.

http://www.iras.gov.sg/irasHome/page03a.aspx?id=16111

 

[snowbird]

Petronas posts RM7 billion quarterly loss, cuts spending on oil slump

The crown jewel of MY, which had been yearly contributing substantially towards the National Budget, is losing big money, had posted a net loss of RM7.3billion for the last quarter!
They are planning to cut capital expenditure by 10%, operating expenses by up to 30% this year and even 2016 capital expenditure would also be trimmed by 15%.
This is really bad news to start the year.
Cutting operating expenses by such a large percentage usually means huge jobs cut.
And, as for that much anticipated PIPC, it will be a definite delay with capital expenditure cut for this year and next year!

http://www.themalaysianinsider.com/...-billion-quarterly-loss-amid-global-oil-slump

 

[FHBH12]

Malaysia's 1MDB to be dismantled under debt plan: sources
PUBLISHED ON MAR 5, 2015 7:59 PM

KUALA LUMPUR (Reuters) - Malaysia's indebted and controversy-ridden state investor 1MDB will be left as a skeletal structure and possibly dissolved under a debt repayment plan in which most of its assets will be sold, sources with direct knowledge of the matter said.

The power and property fund, a pet project of Prime Minister Najib Razak with assets worth US$14 billion (S$19.16 billion), was hit by losses last year and nearly defaulted on a loan payment.

The near-miss drove down the ringgit currency and Malaysian government bonds and prompted calls from opposition leaders to make the fund's accounts more transparent.

The state fund's 42 billion ringgit (S$15.74 billion) debt includes a US$3 billion bond sale in 2013 that was one of the largest global issues from Southeast Asia.

Under the aggressive restructuring plan, crafted by new boss Arul Kanda and blessed by the government, the fund will sell 80 percent of its power unit Edra Energy via a stock market listing, three sources with direct knowledge of the situation told Reuters.

More than 18 billion ringgit of 1MDB's debt linked to its power assets would go under Edra Energy ahead of the listing, which is due to be kickstarted in 6-9 months time, the sources said.

The fund, which has Datuk Seri Najib as chairman of its advisory board, will also sell the bulk of its land assets and stakes in two high-profile property projects, Tun Razak Exchange (TRX) and Bandar Malaysia, after splitting them into separate entities, as already partially indicated in a strategic review unveiled last month.

The Finance Ministry, which is headed by Mr Najib and is the sole owner of 1MDB, did not respond to a request for comment.

"HOT POTATO"

1MDB said in an email that Edra Energy would be "monetised" in 2015 and the TRX and Bandar Malaysia projects would be ultimately owned by the finance ministry.

This process would turn 1MDB into a skeletal structure that could eventually be dissolved completely, said one person, who spoke on condition of anonymity because of the sensitivity of the issue.

"It's become a hot potato for the Malaysian government. It was just too much to handle," said another source.

1MDB said on Wednesday that its plans to list Edra Energy were on track. It said the fund would re-submit an application for an initial public offering after cancelling a submission made in November. It did not elaborate.

Mr Arul, appointed in January to revamp the fund, has carried out a strategic review of 1MDB's finances and announced last month the fund would monetise Edra Energy this year, run real estate projects as standalone entities and sell assets to repay lenders. He did not disclose any financial details.

A respected former investment banker who was previously at Abu Dhabi Commercial Bank, Mr Arul was brought in to see if it was possible to salvage the fund, but decided it was best to wind down its businesses after carrying out a thorough 6-week review.

"A KNOWN UNKNOWN"

1MDB, which analysts view as a cross between a sovereign wealth fund and a state-backed strategic fund, was established in 2008 as the Terengganu Investment Authority with RM10 billion to manage oil royalty payments to the resources-rich northern state of Terengganu.

But as Mr Najib came to power in 2009, he renamed it 1MDB and turned it into a fully-fledged investment fund.

1MDB expanded by purchasing pricey power assets from Malaysian tycoon Ananda Krishnan and gaming-to-plantation conglomerate Genting Bhd, and large plots of land in the capital and other regions of Malaysia, racking up debt in the process until it plunged to a loss last year.

Mr Krishnan also lent RM2 billion to 1MDB last month, pulling the fund back from the brink of the possible default on a bank loan payment, sources said. Officials at Mr Krishnan's investment vehicle Usaha Tegas were not immediately available to comment.

Political leaders, including former prime minister Mahathir Mohamad, have demanded an inquiry into 1MDB's finances and are also calling on the government to explain transactions that they allege resulted in siphoning off public funds.

Mr Najib said on Wednesday he had instructed the Auditor General to independently verify 1MDB's accounts after the allegations. But question marks remain on whether investors would be interested in the fund's IPO and sale plans.

"On 1MDB, it really boils down to the lack of transparency which cements it as a known unknown," said Ng Weiwen, an ANZ analyst based in Singapore. "Greater transparency and accountability of the 1MDB issue would certainly help for future sales of assets and any such possible restructuring."

- See more at: http://www.straitstimes.com/news/as...bt-plan-sources-20150305#sthash.ogjXNlVU.dpuf

 

[cow138]

Looks like a slap in Najib face.
1MDB was his baby.
Seems like Najib might be losing his grip on power.

 

[RedsYNWA]

Looks like a slap in Najib face.
1MDB was his baby.
Seems like Najib might be losing his grip on power.

Najib is a survivor and will do whatever it takes to survive, including U-turns and abandoning pet projects.

 

[RedsYNWA]

In today's ST, it was mentioned that LHL and Najib will be having their Annual Leaders' retreat in SG on 5 May. I have reliable sources that the Annual Retreat acts as a platform to push for things to get going, including developments on HSR and RTS. Let's hope for some good news this 5 May!

 

[snowbird]

Looks like a slap in Najib face.
1MDB was his baby.
Seems like Najib might be losing his grip on power.

This 1MDB is already milked dry with several people made filthy rich in the process, leaving behind billions in debts and just an empty shell
However, 1MDB also didn't get the blessing from too many people, especially his still powerful and influential former boss Dr M.
This episode may drag Najib down from his horse and be his waterloo, a similar scenario on the former PM replacement may be replayed all over again.

 

[cow138]

Mahathir has a piss poor record of choosing a successor.
Think he better don't get involved in choosing the next one.
It's pathetic. Don't think the country can survive another of his choice.

 

[snowbird]

Mahathir has a piss poor record of choosing a successor.
Think he better don't get involved in choosing the next one.
It's pathetic. Don't think the country can survive another of his choice.

Dr M is now 100% pissed off with this guy.
Letting his cousin winning the VP post last year by just a razor thin margin against the former's beloved son was the beginning.
And then this 1MDB debacle, with Dr M totally out of the loop, sealed their sour relationship.
Now, not only the opposition are extremely noisy on this issue, even his own party members are speaking against and had made police reports on this.
Emerging totally unscathed will be quite impossible.
And worse, if this 1MDB really became bad debts, it will affect a few local banks which involved in the lending, very badly.

 

[Jetstream]

Even if Najib got replaced, who else is there within the party has what it takes to steer the country? I honestly IMO can't think of any more promising candidate.

 

[snowbird]

Even if Najib got replaced, who else is there within the party has what it takes to steer the country? I honestly IMO can't think of any more promising candidate.

So there will be one political crisis and one financial crisis, back to back!

 

[RedsYNWA]

Sooooo... any latest news??

Annual Retreat on 5 May lor..... Now the officials from both countries are working behind the scene to see if LHL and Najib can announce some positive developments then.

But seems that communications have been lacking in general, so the officials are also crossing their fingers that progress can be made at the Retreat. But have to say they don't seem v confident. Haha

 

[snowbird]

In today's New on CNA, PM Najib will be investigated for the 1MDB scandal for his role as the chairman!
The problem he has now is lack of support from within his own party, especially from the old guards like Daim, the former finance minister and Dr M.
He made a big mistake by ruffling the feathers of this 2 old men thinking that they are has been and this is going to cost him dearly!