Property News

[Frodo]

Generally this story seems to repeat itself, regardless of economic conditions.

But wouldn't it be the norm for investors to buy properties where there are upside potential due to what's being planned for, regardless whether it is JB property market or somewhere else? And in this case the oil issue meant that developers may have to slow down things a bit.

 

[Tekkun]

Just about more than a year ago, there were so much buzz and excitement about the development of the PIPC or the Pengerang Integrated Petroleum Complex in Johor.
Some smart local politicians even suggested that the property boom was essential to cater for the expected new employment in hundreds of thousands, including many in senior posts, when the complex completes.
Now, the BAD NEWS.

The rapid decline in oil prices had affect PETRONAS really badly.
When the announcement of the development of PIPC, oil price was over US120.
And now, its below US30 and keep sliding downwards.
PETRONAS had announced the PIPC development will be pushed back to 2019.
They have also announced drastic cut in contract jobs in the company's non-core businesses which directly affect the sub-contractors which are also cutting jobs to save costs.
Overall, the whole sector is gloomy.
And just this week, BSN or Bank Simpanan Nasional, the national saving bank, which is equivalent to our POSB, is restricting approval of loans to people working in the once lucrative oil and gas sector.

For those who had invested in properties with anticipation of the employment boom with the completion of the PIPC will be in for a rude shock.
There will be an acute over supply in the property market with the indefinite delay of the PIPC.
Rental market in the next 4 to 5 years will be extreme bad and for the resale situation, it will be a buyers market, if there are actually enough uyers around.

This is real Bad News. O & M workers are known to have huge spending power.


Keppel axes over 6,000 O&M workers as contracts dry up

It needs to rightsize to stay afloat.

Keppel Corporation’s shrinking staff numbers paint a disheartening picture of its battered offshore and marine segment. In its latest earnings presentation, Keppel reported that it has let go of about 6,000 direct staff in its local and overseas yards since January 2015, in a bid to slash costs and optimise its current operations.

Meanwhile, the size of its Singapore subcontract workforce has dropped by about 7,900 workers, representing a fourth of Keppel O&M’s subcontract employees.

Keppel suffered a wave of contract deferrals in the past year. It started the 2015 with the expected deliveries of 15 drilling jackup rigs, but eight of these have since been pushed into 2016.

“Bracing ourselves for a possibly long winter, we need to ensure that our overheads are well under control and that we are ready if the market conditions get tougher. We are preparing ourselves to meet the near term challenges by rightsizing our operations and resources,” said Keppel CEO Loh Chin Hua at the group’s earnings presentation.

Although Keppel is focussed on reducing costs, Loh stressed that it is still investing prudently in R&D as well as improving its productivity and core competencies.

“The storm hitting the offshore and marine business is not one which we are unfamiliar. Keppel had braved through many cycles, emerging stronger and more resilient each time,” Loh said.

- See more at: http://sbr.com.sg/energy-offshore/n...om-workers-contracts-dry#sthash.APtF4IaD.dpuf

 

[xebay11]

More worrying is SGD has plunged, over the counter rates now below RM3, the party is over?

 

[tstar]

if one gets retrenched in early fifties, probably the only option left is to rent out hdb and move to jb.

unless of course you have enough cash sitting in bank or
you have to work at a supermarker or airport or food courts. some people simply cannot put up with this idea but have no alternatives. what if your ex colleague finds you joining the service industry?

if you know the story of a senior bio scientistn with standford phd degree and retrenched and then working as a cabby a few years ago. the guy is lucky. in the end, he found a decent job in china. sometimes you wonder if there is any price set for human dignity.

This is real Bad News. O & M workers are known to have huge spending power.


Keppel axes over 6,000 O&M workers as contracts dry up

It needs to rightsize to stay afloat.

Keppel Corporation’s shrinking staff numbers paint a disheartening picture of its battered offshore and marine segment. In its latest earnings presentation, Keppel reported that it has let go of about 6,000 direct staff in its local and overseas yards since January 2015, in a bid to slash costs and optimise its current operations.

Meanwhile, the size of its Singapore subcontract workforce has dropped by about 7,900 workers, representing a fourth of Keppel O&M’s subcontract employees.

Keppel suffered a wave of contract deferrals in the past year. It started the 2015 with the expected deliveries of 15 drilling jackup rigs, but eight of these have since been pushed into 2016.

“Bracing ourselves for a possibly long winter, we need to ensure that our overheads are well under control and that we are ready if the market conditions get tougher. We are preparing ourselves to meet the near term challenges by rightsizing our operations and resources,” said Keppel CEO Loh Chin Hua at the group’s earnings presentation.

Although Keppel is focussed on reducing costs, Loh stressed that it is still investing prudently in R&D as well as improving its productivity and core competencies.

“The storm hitting the offshore and marine business is not one which we are unfamiliar. Keppel had braved through many cycles, emerging stronger and more resilient each time,” Loh said.

- See more at: http://sbr.com.sg/energy-offshore/n...om-workers-contracts-dry#sthash.APtF4IaD.dpuf

 

[Tekkun]

if one gets retrenched in early fifties, probably the only option left is to rent out hdb and move to jb.

unless of course you have enough cash sitting in bank or
you have to work at a supermarker or airport or food courts. some people simply cannot put up with this idea but have no alternatives. what if your ex colleague finds you joining the service industry?

if you know the story of a senior bio scientistn with standford phd degree and retrenched and then working as a cabby a few years ago. the guy is lucky. in the end, he found a decent job in china. sometimes you wonder if there is any price set for human dignity.

It is already tough to try to survive when one is retrenched, more so trying to find a job when everyone else is also doing the same.
Then you have this high cost of living to cope up with, ot forgetting the mortgage on your HDB or a condo.
Think Malaysians are luckier in this sense as it is a lot cheaper over here.

 

[nitecrawllerr]

More worrying is SGD has plunged, over the counter rates now below RM3, the party is over?

Most currencies were weak against US$. S$ no exception. Had the garment not hold our CPF, i am very sure SGD would have been much weaker.

 

[snowbird]

Most currencies were weak against US$. S$ no exception. Had the garment not hold our CPF, i am very sure SGD would have been much weaker.

Actually MAS manages the Singdollar exchange rate against a trade-weighted basket of currencies within a target band.
The Board allows the currency to appreciate or depreciate depending on external factors such as the level of world inflation and domestic price pressures and may also intervene in the foreign exchange market to prevent excessive fluctuations in the exchange rate.
Singapore is the only major economy in the world to use the exchange rate, guiding the Singdollar higher or lower.
It is not that the S$ is weaker but rather the US$ had strengthen, US's economy had grown stronger and the Federal Reserve's raising the interest rate in last Dec is showing a confident and positive economy outlook for the US in 2016.
The S$ had depreciated only about 5% to 6% against the US$ while the Ringgit's depreciation of around 20% against the US$ in the last 12 months.
The exchange rate currently is about US$1 to S$1.43 and US$1 to RM4.2.
Its not that the S$ had appreciated against the RM but rather the S$ had depreciated lesser against the US$.
So if S$ moves up against the US$ to 1:3, then we may be seeing the rate of S$1.0:RM3.23

 

[xebay11]

Actually MAS manages the Singdollar exchange rate against a trade-weighted basket of currencies within a target band.
The Board allows the currency to appreciate or depreciate depending on external factors such as the level of world inflation and domestic price pressures and may also intervene in the foreign exchange market to prevent excessive fluctuations in the exchange rate.
Singapore is the only major economy in the world to use the exchange rate, guiding the Singdollar higher or lower.
It is not that the S$ is weaker but rather the US$ had strengthen, US's economy had grown stronger and the Federal Reserve's raising the interest rate in last Dec is showing a confident and positive economy outlook for the US in 2016.
The S$ had depreciated only about 5% to 6% against the US$ while the Ringgit's depreciation of around 20% against the US$ in the last 12 months.
The exchange rate currently is about US$1 to S$1.43 and US$1 to RM4.2.
Its not that the S$ had appreciated against the RM but rather the S$ had depreciated lesser against the US$.
So if S$ moves up against the US$ to 1:3, then we may be seeing the rate of S$1.0:RM3.23

Half empty vs half full, same difference.

 

[snowbird]

Half empty vs half full, same difference.

You are absolutely wrong here!
Look at it this way perhaps to understand better.
Say 2 neighbours A and B are both equally rich.
A got a windfall from an uncle whom left him millions when he just passed away.
Yes, A got very much richer than B now but B's wealth is status quo and still as rich and not poorer than before.

 

[Tekkun]

http://www.thestar.com.my/news/nation/2016/01/25/malaysia-truly-a-second-home/

 

[xebay11]

You are absolutely wrong here!
Look at it this way perhaps to understand better.
Say 2 neighbours A and B are both equally rich.
A got a windfall from an uncle whom left him millions when he just passed away.
Yes, A got very much richer than B now but B's wealth is status quo and still as rich and not poorer than before.

So in sgd currency, who is the one with the wealth and who is the one with the status quo? ,As far as sgd is concerned, it is actually status quo and being devalued.

 

[snowbird]

So in sgd currency, who is the one with the wealth and who is the one with the status quo? ,As far as sgd is concerned, it is actually status quo and being devalued.

You don't seems to understand my analogy of the situation.
Let me explain again here.
The S$ had remained status quo and had not devalued while the US$ had gained strength due to a recovered economy (hence the increase of interest rate last month) and a general positive outlook for the year.
US$ are being heavily bought and hedged all over the world with anticipation of appreciation in near terms making it even stronger, all this is basic result of supply and demand.
In other words, the US$ had become more expensive for everyone else.
Unlike the weak RM with heavy selling and massive foreign funds exodus plus all the negative reports in the country whole of last year, it had lost more than 20% of its value against the US$ last year, it had effectively being devalued.
Now, if S$ is being devalued, you'll never get that 1:3 exchange rate for the RM.

 

[xebay11]

You don't seems to understand my analogy of the situation.
Let me explain again here.
The S$ had remained status quo and had not devalued while the US$ had gained strength due to a recovered economy (hence the increase of interest rate last month) and a general positive outlook for the year.
US$ are being heavily bought and hedged all over the world with anticipation of appreciation in near terms making it even stronger, all this is basic result of supply and demand.
In other words, the US$ had become more expensive for everyone else.
Unlike the weak RM with heavy selling and massive foreign funds exodus plus all the negative reports in the country whole of last year, it had lost more than 20% of its value against the US$ last year, it had effectively being devalued.
Now, if S$ is being devalued, you'll never get that 1:3 exchange rate for the RM.

Did you not read that SGD is being devalued? And even against RM, now it is at or below RM3.

 

[Frodo]

if one gets retrenched in early fifties, probably the only option left is to rent out hdb and move to jb.

unless of course you have enough cash sitting in bank or
you have to work at a supermarker or airport or food courts. some people simply cannot put up with this idea but have no alternatives. what if your ex colleague finds you joining the service industry?

if you know the story of a senior bio scientistn with standford phd degree and retrenched and then working as a cabby a few years ago. the guy is lucky. in the end, he found a decent job in china. sometimes you wonder if there is any price set for human dignity.

Maybe can consider being a Uber driver.:o

 

[Stevewish]

Maybe can consider being a Uber driver.:o

My uncle complain about the long "working" hour driving with Comfort cab and switched to Uber last year. When in Uber, he complain about the long "waiting" hour for customer. Now switch back to Comfort cab again. That day, I took a Uber and the driver is very young and he said he is a student

 

[Frodo]

My uncle complain about the long "working" hour driving with Comfort cab and switched to Uber last year. When in Uber, he complain about the long "waiting" hour for customer. Now switch back to Comfort cab again. That day, I took a Uber and the driver is very young and he said he is a student

Hmmm....I understand that the requirements for Uber is much lesser than that for Comfort. I have talked to a couple of Uber drivers while in their cars and it seemed to work well for them. Best is when you have your own car, I suppose.

 

[PuteriWorld]

Hmmm....I understand that the requirements for Uber is much lesser than that for Comfort. I have talked to a couple of Uber drivers while in their cars and it seemed to work well for them. Best is when you have your own car, I suppose.

One of my cilents ( property agent ) quit the industry and joined Uber. Never looked back since.

He worked only during the Peak hours and weekends. Easily S$7000 a month. He don't look like the sort who will lie to me though but as you know Uber is paying already S$4 to 5k just during peak hours when their drivers apps are switched on

 

[Frodo]

One of my cilents ( property agent ) quit the industry and joined Uber. Never looked back since.

He worked only during the Peak hours and weekends. Easily S$7000 a month. He don't look like the sort who will lie to me though but as you know Uber is paying already S$4 to 5k just during peak hours when their drivers apps are switched on

Wow not bad leh. Maybe should not quit being an agent. In between travelling to meet clients to see property can still pick up Uber passengers if it is along the same way.

 

[kslresidence]

http://www.thestar.com.my/news/nation/2016/01/25/malaysia-truly-a-second-home/

And there are still majority of Singaporeans thinking it is a step backward living in Malaysia. At least many of my friends were shocked when they learnt that I am living in Johor despite being a Singapore native. Haha

 

[Tekkun]

And there are still majority of Singaporeans thinking it is a step backward living in Malaysia. At least many of my friends were shocked when they learnt that I am living in Johor despite being a Singapore native. Haha

Not surprised. Many Singaporeans have this "superior" culture over Malaysians. It is true Singapore is a better managed transparent country.
But it is the Malaysians who are enjoying life in a lesser managed environment. It is how you make your bed.