The Wire-Meta Fiasco

What is truth?

Tough to answer that. Where does journalistic creativity end and falsehoods begin?

India was shook when an online news portal reported that Amit Malviya (BJP IT cell head) was granted amazing powers by Meta to take down any social media post without any questions asked. 

"The company has given Malviya two levels of privileges – he can post as he likes, without the rules governing the platform applying to him, and he can impose his will as he pleases to have posts critical of the BJP, the Union government, or right-wing Hindu politics, deleted.”, The Wire’s story had alleged.

Meta executives called out the bluff in response. 

After questions were raised followed by public outcry,  the online leftist news portal purportedly even produced inside letters proving or alluding that there was some truth in their earlier reports.  

Of course, all this was proven false and the news articles were taken down. 

It was reported that: "In its apology on October 27, the Wire acknowledged that the “internal editorial processes which preceded publication of these stories did not meet the standards that the Wire sets for itself and its readers expect from it.” However, it did not issue an apology to Malviya or Meta. Two days later, Malviya filed a case against the Wire for cheating, forgery, criminal defamation and criminal conspiracy. "

And then,  there were news that police has raided the offices of Wire.

Bad day for journalism in India.

 “It is not death that a man should fear, but he should fear never beginning to live.”

Mark Cuban - "Live like a Student"

Mark Cuban and his Broadcast.com founders sold their company to Yahoo for $5.7 billion in 1999.

But he did not upgrade his lifestyle.

He said the wisest advice he got was to "live like a student".

So he kept his house,  car and furniture. 

The only thing he splurged on was a private jet (a Gulfstream V business jet) for $40 million.  And the reason for doing so was because he valued time as the most important asset and this bought him time. 

Mark Cuban is an American entrepreneur who has a networth of $4.5 billion according to Forbes.

He has also been expanding his investments in the blockchain space. In 2021, it was reported that he invested in Indian crypto firm Polygon(MATIC). Sandeep Nailwal is the co-founder of Polygon.

Was reading one of my old post: 

I know that my financial freedom goal is to achieve a passive income of $2800 per month by the year 2022 (FUTURE). NOW, I am achieving slightly above $200 per month in passive income.
Since now is the year 2009, I have set the goal of achieving $400 per month in passive income by the end of this year. How I set out to achieve this goal is to reduce my expenditure and increase my sources of passive income.

 

2022 is here already!! Can't believe it has been 13 years since I wrote that post. 

Have I achieved what I set out to do? Stay tuned to find out more. 

Bank Savings Account Interest Rates and Singapore Savings Bond

The interest rates for the flagship savings account of the 3 local banks have gone up.  As of 1 November 2022, the interest rates are as follows:

UOB One Account- 3.6%

DBS Multiplier Account- 4.1% 

OCBC 360 - 4.65%

Meanwhile, Singapore Savings Bond (SSB) 10 year average interest rate of the December tranche  = 3.47%

Which one is more attractive?

I think the SSBs are a good long term holding.  While the interest rate seems less,  you don't really have to jump through any hoops or fulfill any spend/save/salary kind of criteria to earn the higher interest rates. 

Given how the SSBs were oversubscribed in the last tranche,  I think I will opt for a 10k sum for this tranche. 

MHA officers to receive 3-10% pay increase

It was reported in ChannelNewsAsia that about 22,000 MHA officers will receive a 3-10% increase in their gross monthly salaries starting 1 January 2023.

MHA said on 31 October 2022 that officers on the Home Affairs Uniformed Services,  Home Affairs Services,  Home Team Specialist Scheme and Commercial Affairs Scheme will receive the salary adjustments. 

Earlier in June, the PSD had also announced a salary increase of 5-14% for about 23,000 civil servants. This took effect from 1 August 2022 and applied to the Civil Service generic schemes.

PSD also announced in September another pay raise of 5-12% for administrative officers, judicial officers and statutory appointment holders. Around 300 administrative officers and 30 judicial officers amd statutory appointment holders benefited from the pay increase. 

The salary adjustments were to keep pace with the market amd ensure that pay remains competitive. 

6 month Treasury Bills Hit 4.19%

6 month Treasury Bills yield have reached 4.19%. This is up from 3.77% reported for 6 month bills last week.

This is compared to Singapore Savings Bond last tranche average of 3.21% over 10 years

CPF and Singapore Savings Bond - Risk Free Component of Portfolio

Have been making regular voluntary contributions or top-ups to my CPF ever since I started working.  This is on top of the "mandatory" contributions and it has been tough at times to force myself to top-up especially when cashflow might be tight and there are so many other investment opportunities out there that are screaming a "Buy!".

However, the CPF really forms a solid foundation for anyone's retirement plan.  Having been inspired by other blogs in my younger days, I stuck to the habit of making regular contributions to my CPF Special Account and Medisave Account since this was earning an interest rate of 4%.  This was much higher than any fixed deposit rates out there in the past 10 years (ignoring this year of course where fixed deposit rates have climbed up).

At times, I will also refund my CPF housing loan component which I had utilised to buy my home.  This has not been the priority recently since there are other instruments such as the Singapore Savings Bonds which now provides an interest rate or return of more than 2.6%.  Thus, it makes sense to buy into these instruments using my spare cash instead of returning money to my CPF OA which only earns 2.5%.

The CPF now forms a significant amount of my portfolio as it is equivalent to the risk free or "bond-like" component of my portfolio.  I am essentially investing in a risk free asset and this should form the base of my retirement portfolio.

The Complete Guide to Buying a Home in Singapore

Introduction: Why Buy a Condo?

The idea of owning a condo is appealing to many people. And the reasons for this are many. For starters, condos are relatively affordable, and they offer a lot of great facilities like pools, gyms, and playgrounds.

A condo is an ideal choice for people who want to live in a place where they can have a sense of community with other residents. Condos are also great for those who want to enjoy all the facilities that come with living in a condo.

Condominiums are typically more expensive than apartments because they offer more amenities and facilities. This is why condos are usually the first choice for people who want to live in Singapore, especially if they have children or pets.

Things You Must Know About Your Housing Options In Singapore

There are various housing options in Singapore. For people looking to own our buy a property,  you can select from a variety of choices. 

This includes:

1. HDB flats (in various shapes and sizes)

2. Apartments 

3. Condominiums

4 . Landed property

Renting a place is also possible though most landlords will typically rent out their places for a minimum of 12 months. The typical lease period will be 24 months or 2 years. 

Where Can I Find the Best Deals on Buying Property In Singapore?

PROPERTYGURU is the leading real estate portal in Singapore. They offer a wide range of listings for properties, from condominiums to bungalows and everything in between.

PROPERTYGURU is the leading real estate portal in Singapore. They offer a wide range of listings for properties, from condominiums to bungalows and everything in between. They are open 24/7 so you can find your dream home anytime, day or night.

The website also includes detailed information about each property such as location, size, price and amenities so you can make an informed decision before making an offer on your dream home.

***

ENJOY THIS OTHER POSTS BELOW

Real Estate Investment Trusts (REITs)
What are REITs?
Buy Property or Invest in REITs?
Why Invest in REITs?
Singapore REITs - History and Regulations
Income Investing - REITs
REITs trading below Net Asset Value


Commodities/Gold/Silver
Buy Silver in Singapore
Is Gold and Silver Still a Buy?


Insurance
Cheapest Insurance in Singapore?
Can You Trust Your Financial Planner?


Popular Reads
How Much to Give for Chinese Weddings
How Much to Give for Church Weddings
A Brutally Honest Post

How Much Does a Tesla Cost in Singapore

Tesla, a company that manufactures electric cars and energy storage systems, is an American multinational corporation. Tesla’s products are electric and use lithium ion battery technology.

Tesla was founded in 2003 by Elon Musk with the goal of creating a sustainable transportation system. The company's first vehicle was the Tesla Roadster, which was the first production EV car to use lithium-ion battery cells and to be able to travel 200 miles on a single charge.

Tesla has been in business for more than 15 years now. They have had their fair share of ups and downs, but they are still one of the most innovative car companies in the world today.

Have been seeing lots of Teslas around Singapore lately.  So how much does a Tesla cost in Singpaore?

Tesla's Model Y is available in Singapore.  

Based on article in Jul 2022 - Model Y without COE:

1. $142,471 for rear-wheel drive version
2. $190,195 for all-wheel-drive Performance version

Model 3 without COE:

1. $114,655 for rear-wheel drive
2. $164,398 for all-wheel-drive

Top of News - 21 Oct

1. Singaporeans, remember VR man? Standard Chartered has hired James Lye (ex-actor) as global head of international banking.

2. Durian season is back. MSW durian at $25/kg. Expensive?

3. China's Xi sends warning signal to the wealthy.  “We will protect lawful income, adjust excessive income and prohibit illicit income.” This is a sign of more concrete policies to come under the "Common Prosperity" policy. 

4. After Singapore announced new cooling measures that were implemented end September, HDB has waived the wait-out period of 15 months for 220 private owners who had obtained an option to purchase prior to introduction of the measures. In a bid to cool down property prices,  the government had introduced new cooling measures that will require private property owners to wait for 15 months after the sale of their properties before they are allowed to purchase a HDB flat. Many retirees who wish to cash out of their private properties and right-size to a HDB flat will be affected. There have been 650 appeals lodged thus far.

5. An officer with the Ministry of Manpower has been sentenced to 8 months jail after he used a credit card he picked up on a road to top-up his EZlink card and to buy a gold ring. Seah Guo Rong, 36, took urgent half day leave to commit the offences. Civil servants salary not enough? With the formation of the Credit Bureau in Singapore,  perhaps it is time that the government conduct spot checks on civil and public servants to ensure that their self-declaration on indebtedness is verified by an independent third party. Financial Indebtedness and Declaration for Civil Servant

6. Liz Truss has resigned as 🇬🇧 Prime Minister. Bring back Boris?

Applied for T-bills

Applied for $5000 worth of T-bills (6 months cut-off yield at 3.77%).

Topped up my SRS account with spare cash and applied for the T-bills.

Given the interest rates,  it is probably better than fixed deposit rates.  Besides that, I get tax reliefs for topup to SRS account too.

Top of News

Yahoo journalists in Singapore retrenched. 🇸🇬 This does not affect Singapore news coverage.

With rising property prices in Singapore, it was reported that HDB BTO flats are affordable for a couple with monthly household income of S$3,000. Not sure how the math works but it makes me wonder 🤔.  How many flats are available at that price range (SUPPLY) and how many couples with household income of S$3,000 there are who are property hunting (DEMAND)? Because while the math might be true, if there are only 10 of such affordable flats available but 1000 couples looking to buy....

Returns of Different Instruments

CPF-OA = 2.5%

CPF-SA =4.0%

CPF-MA =4.0%

HDB loan rate =2.6%

Singapore Savings Bond= 3.21% (10 year average return)

6month T-bills = 3.07%

12 month T-bills = 3.77%

Different instruments give different returns.  Just like plants 🪴 growing at different rates. 

How to Buy T-bills - OCBC Mobile App

 T-bills yield are going up. Here is a simple guide on how to subscribe using OCBC Mobile App.

Books to Read - My 2022 Reading List

 It is the new year and Covid has definitely given us lots of opportunities to stay home and indulge ourselves in hobbies such as reading.

Here is my list of books that I intend to read in 2022.

1. Atomic Habits 

This is a New York Times #1 Bestseller by James Clear.  Packed with different self-improvement strategies, the book is meant to bring about changes in your life through tiny changes that you can make.  Lessons from the book can be found.

Amazon is having an offer right now and you can get the book through this link: Atomic Habits: The life-changing million copy bestseller

2. Genghis Khan: And the Making of the Modern World

Highly recommended by various people, this book is an epic tale of how Genghis Khan rises from a small tribe to become ruler of a vast empire, conquering more lands than the Romans did in a much shorter time.  This revisionist history depicts Genghis Khan as a progressive, tolerant leader who abolished torture, and provided almost universal religious freedom.  In fact, many of the Mongols were either Christian, Muslims or Buddhists.

Get your copy from Amazon here:

Genghis Khan: And the Making of the Modern World 

3.  Klara and the Sun

Kazuo Ishiguro is probably one of my favorite authors and have read almost every single book of his.  Unfortunately, have yet to read this book of his.

Klara and the Sun: Longlisted for the Booker Prize 2021

4. Has China Won?

The title of this book is intriguing enough.  And it is written by Kishore Mahbubani who wrote Can Asians Think?  Having read his earlier books, I think this will make for an interesting read given his previous experience in Singapore's Ministry of Foreign Affairs.  He actually rose to the rank of Permanent Secretary in the Ministry of Foreign Affairs which is actually the highest ranking civil servant just below the minister.  So his knowledge of the issues at hand are definitely worth a read.

Has China Won?: The Chinese Challenge to American Primacy

5.  The Audacity of Hope

Well, it has been quite a few years since Barack Obama has stepped down as President of the United States of America.  And this book which became the best seller in 2006 has been on my reading list.  But this year, I intend to complete it. I am currently at Chapter 2 of the book.

The Audacity of Hope: Thoughts on Reclaiming the American Dream

[This post to be continued...]

Starting Pay in Civil Service and Yearly Bonuses

Many young graduates who are seriously considering joining the civil service are likely curious to find out what is the starting pay or salary in one of the Ministries.

Reading in some forums, there are anonymous people who claim that they are receiving $4k starting salary.  In one of the forums, a female with first class honours claims that her starting pay when she joined was around $3400.

Just for a more accurate picture, im a female, almost 2 years in CS, NTU FCH, in a ministry not listed above.
2015 Sep - MX13 $34XX
2016 Sep - MX13 $36XX
2017 Apr - MX13 $37XX (after Apr increment), will likely be promoted to MX12 after i hit my 2 year mark.

The civil service has a salary range for the various grades.  A fresh graduate will enter at the grade known as MX13.  The common standard is for them to stay at this grade for 1-2 years before they are promoted to MX12.  To take care of merit increment for these people who have been in the job grade for a few years, the salary range of MX13 thus varies.  

Depending on whether one has completed NS obligations or not (Singapore males), the starting pay will then be adjusted accordingly.

Few years back, I posted on the starting pay for a fresh graduate.  The median salary was around $3400 for a fresh university graduate in Singapore.  The civil service often tries to pay a competitive salary so it will not be an anomaly for a fresh graduate to earn a starting pay around that region.

Back in 2011, I also published what was salary range for civil servants.  The starting salary range was $2800 for MX13 and that was 10 years back.  Right now, one can expect the starting salary to be much higher. So the starting salary for a fresh graduate will be minimally $3000 based on current estimates.

And how much bonuses does a civil servant get? Well, the pay structure is quite complicated.  But based on open source information, there are the following bonuses paid out:

1.   Mid-year bonus (Annual Variable Component) = Usually 0.5 month bonus
2.   Year-end bonus (Annual Variable Component) = A range from 0.25 to 0.75 months
3.   Year-end 13th month bonus (Non Pensionable Annual Allowance) = Standard of 1 month bonus
4.   Once off bonuses = Varies
5.  Performance bonus = ranges from 2-3 months depending on performance grade and job grade 

13th month bonus is guaranteed.  So everyone will definitely get 1 month bonus.  

Mid-year bonus and year-end bonus can vary quite a bit.  Have compiled the bonuses that was paid out by the civil service for the past few years.  Do note that the bonuses paid out at year end includes at least the 13th month bonus (standard minimum of 1 month of salary) and a AVC bonus that varies.  The AVC bonus is paid out in July (what is commonly called the mid-year bonus) and in December (together with the 13th month bonus, what is commonly called the year-end bonus).

At times there are minimum caps to the AVC bonus so that a minimum quantum is paid out for lower wage civil servants.  For fresh graduates, this is probably not relevant since their AVC bonus will usually be higher than the minimum quantum set.

2011

Mid-year bonus = 0.5 months + $250 cash quantum

Year-end bonus+ 13 month = 1.75

Total for 2011 = 2.25 months + $250 cash quantum

2012

Mid-year bonus = 0.3 months

Year-end bonus + 13 month = 1.7

Total for 2012 = 2 months bonus

2013

Mid-year bonus = 0.4 months

Year-end bonus + 13 month = 2.1 months

Total for 2013 = 2.5 months

2014

Mid-year bonus - 0.5 months

Year-end bonus + 13 month = 1.8 months

Total for 2014 = 2.3 months

2015

Mid-year bonus = 0.5 months

Year end bonus + 13 month = 1.65 months

Total for 2015 = 2.15 months

2016

Mid-year bonus = 0.45 months

Year end bonus + 13 month = 1.5 months

Total for 2016 = 1.95 months

2017

Mid-year bonus = 0.5 months

Year end bonus + 13 month = 2 months

Total for 2017 = 2.5 months

2018

Mid-year bonus = 0.5 months + $300 ($500 for lower wage)

Year end bonus + 13 month = 2 months

Total for 2018 = 2.5 months + $300

2019 (Bad year due to economic downturn)

Mid-year bonus = 0.45 months

Year end bonus + 13 month = 1.1 months + once-off payment of $250 to $1,500

Total for 2019 = 1.55 months + once-off payment of $250 to $1,500

2020 (Worst year ever due to Covid 19)

Mid-year bonus = None paid out

Year end bonus + 13 month = 1 month + once-off payment of $1,200 (lump sum only for low wage civil servants)

Total for 2020 = 1 month 

Well, not to fret for fresh graduates.  There is still a performance bonus that is paid out every year too.  This usually ranges and an average performer at MX13 can expect around 2 months bonus.   Note that there are civil servants (high potential or scholars) that do get additional bonuses too.  Fresh graduates probably don't qualify for these.

Natural Language Processing Using Python - Trump Speeches

Again, just having fun on the very first day of 2021.  Passing Trump's speeches into a markov algorithm to churn out random sentences.

Note that Trump of course did not say these sentences.  It is just generated by a computer algo.

Sentences I like are in underlined bold.  It is almost good to pass off as one of Trump's own sayings.

1. We’ve been thinking about that now for a little while but I want 10%, 15%. Because the truth is that the establishment can’t believe it because it’s so bucolic, so beautiful.
2. But that’s the statement of an inexperienced man…About we have to be able to get along with everybody.
3. We have to be smart enough to stop it, folks.
4. Of course if you listen to the pundits, we weren’t expected to win it; Jeb was expected to come in legally.
5. But the whole point is that it brings us all together.
6. One of the best-selling, all-time, and I mean this so, so strongly – the veterans hospitals – obviously they have problems.
7. You can be tough, you’ve got to lead these men.
8. I’m a little bit foolish.
9. And I’m not knocking it.
10. BUT WE HAVE TO TAKE CARE OF PEOPLE.
11. But you know, you look at our roadways where they're crumbling.
12. We have people – bureaucrats in Washington telling them how to educate their kids.
13. I’m not watching any of them in the next week.
14. Did you ever see what they do is they convince people like me not to do it right from here and from here.
15. But it’s still the New York Times is a big problem, Russia’s a problem, China’s a problem.
16. We want trade deals that Bernie was so vehemently against and he’s right on that – it’s such misrepresentation.
17. I have many of these people that are morally corrupt.
18. But if I’m forced to fight for the Second Amendment.
19. They pay them hundreds of thousands of people and move to another location.
20. But we are going to make our own products.
21. And this is not a good sign.
22. When I have somebody that’s going to be our president.
23. Actually though what I got was worse than credit because they were the first victory I had.
24. I mean, you look at Atlantic City.
25. Look, Club for Growth – you ever watch the McLaughlin Report?
26. Just take a look at your security, take a look at what's happening with the devaluations of so many countries.
27. ...A poll came out and some of the Super PACs have total control over the people running for office.
28. This is a wall too.

Natural Language Processing Using Python - Trump speeches

Got a Python code from Github that uses Markov algo to churn out random sentences using Trump's speeches as a database.

Check out some of the random sentences I got below:

Immigration is a privilege, and we should have kept 20,00 troops or something, we give Iraq.

ADD LEAST HE'S NOW ADMITTING IT IS GOING TO BE AS BEAUTIFUL AS A WALL COULD BE.

We have 93 million people that are incompetent.

When Ford moves to Mexico, I’m going to stop drugs from coming into New Hampshire.

When Carrier Air Conditioners, as you know, Afghanistan for $43 million – can you imagine we are ranked number 28 which is way down at the negotiating table without pre-conditions for years.

In other words, the worst elements in Mexico are being pushed into the United States and Israel is absolutely, totally unbreakable.

He mentions it but I want them to invest in our country.

Why do they have to do that, you know, I said bomb the oil, right?

And again, we have a situation in Afghanistan; we're spending tremendous amounts of money were spent – millions and millions of votes more.

So I told these political pros, you know, I hate to say 40 but I won’t even say.

We will someday in the not too distant future.

Again, many Americans must wonder why we get the crowds, you wonder why you get yourself in trouble.

Don’t forget, I didn’t want the credit for that.

I mean, they have no documentation and we don’t win very much.

I’d get along with him.

And I believe we’re going to be incredible.

Rwanda - Becoming Africa's Singapore

Whenever anyone hears about Rwanda, images and thoughts of the horrible 1994 genocide surfaces to the mind.  Back in 1994, the majority Hutu massacred an estimated 500,000 to 1 million Tutsi.  More than 2 million people fled the country into neighboring countries until order was restored.

It is therefore hard for anyone to imagine that economic transformation is under way after more than 25 years since the horrible incident.  But Rwanda has taken long strides since then. Under the leadership of ex-military strongman, Paul Kagame, the country seems to have picked itself up since 2000 is making steady progress towards becoming Africa's Singapore.

Under Paul Kagame, a Vision 2020 was set to develop Rwanda into a knowledge-based middle class country by 2020.  Kagame sought extensive advice from various experts outside of his country.  And it seems like good progress is being made.

Amongst the reforms that have been brought about, one of them includes keeping Rwanda clean.  It is illegal to use plastic bags in Rwanda and bringing in plastic bags is an offence.  Talk about dedication to sustainability efforts!  Rwanda

Here is a good informative video on Rwanda.  The Singapore of Africa perhaps?

Any Rwandans reading this post?  Please leave a comment below.  Will definitely want to hear more.

Read More Links Don't Work After Migrating to New Template

 This blog post is a test.  

After migrating to a new template,  most of the links in both featured post and blog post do not work. 

Testing to see if the same issue occurs for a brand new post under the new template. 

Hopefully,  this works. 

Car Ownership Cost in Singapore - Parking

Of the many car ownership costs in Singapore, the cost of parking probably varies the most.

How much does parking cost in Singapore? Well it really depends. 

Firstly, it depends on where you are staying. If you are staying in  landed property, there is zero parking costs involved. If you are stay in a condo/private apartment, probably no parking costs incurred too (if you keep within the limits of the number of cars).  

How Much is CPF Retirement Sum

CPF Retirement Sum.  Easy yet complicated.

Fact #1 - For your retirement needs

Firstly, to withdraw money from your CPF at age 55, you are required to meet the CPF retirement sum.  At the age of 55, one's money in the Ordinary Account and Special Account are swept into the Retirement Account.

Civil Service Bonus for 2020

Straits Times reported lately that civil servants will not be getting a year end bonus this year due to Covid 19.  There was also no mid-year bonus paid out.

Civil servants received a one off payment of 0.25 months which was capped at $750 as well as their 13th month bonus.  This year, senior civil servants also had a pay cut of 0.5 to 1 month according to their seniority.

Not all gloom and doom though.  Civil servants still enjoy a performance bonus that is outside of the mid-year and year-end bonus.  An average performer should get around 3 months worth of performance bonus according to anonymous feedback in various forums.  So taking that into account, civil servant's annual pay package for this year should be around 16 months of monthly salary.  That is assuming one is an average performer.

Interested in civil service payscale? Check out this link here https://sgfinancialfreedom.blogspot.com/2015/10/singapore-civil-service-pay-scale.html

MHA Bonus?

Grab and Gojek merger rumours

There has been various reports that Grab and Gojek are making progress in talks to merge both companies. 

Based on estimates, Grab is valued at US$15 billion and Gojek is valued at US$10 billion.  The rival companies are both loss-making and are two of Southeast Asia's most valuable start-ups.

Over the years,  Grab has expanded from ride hailing  to food delivery and even to payments (GrabPay). They have expanded rapidly over the years but it remains to be seen whether the various business ventures are profitable. 

Just shortly after Covid 19, when its ride hailing business took a hit, its food delivery business saw increased volumes.  However, that seemed to increase the rate of their cash burn as food delivery was not too profitable a business to be in. 

Both Grab and Gojek refused to comment on the speculation though it was also reported that Grab's CEO Mr Anthony Tan had said in an internal note that they were in a good position to acquire.

Grab's last big acquisition was when it bought over Uber's Southeast Asia business with Uber taking a 27.5% stake in Grab. SoftBank was an investor in both Grab and Uber. 

With any merger,  Comfortdelgro might end up the loser as it has been facing intense competition ever since Grab began its operations.  

Apple Maps Car Spotted Today in Singapore

Was walking along the road today when I saw a Apple Maps car (white in colour) driving about.  

Interesting.  

Didn't know that Apple had a car like this similar to Google.  

In any case, read up a bit and realised that Apple has also come up with a 3D streetview concept like Google Maps called Look Around.  

Though I haven't noticed such a feature on my iPhone yet.  So perhaps it is still being rolled out in phases.  

Singapore Civil Service - Declaration of Indebtedness and Financial Embarrassment

Civil servants or public officers in Singapore are expected to declare their financial standing when they first join and every year thereafter or whenever their  unsecured financial liabilities exceed 3 months salary.

This declaration of indebtedness is meant to ensure that civil servants remain of good financial standing and helps the Public Service know whether an officer becomes vulnerable due to financial embarrassment.  The intention is meant to protect the officer (and by extension the Public Service) and is not meant to penalise the officer.

An officer is considered to be financially embarrassed if he or she has defaulted in repayment of loans, credit facilities and liabilities for 3 consecutive months.

Other situations where one is financially embarrassed also include being an undischarged bankrupt or where one takes a loan outside certain categories.

So this means that if one has not been making payments for credit card bills for 3 months consecutively, one will be considered financially embarrassed.  Or if one has borrowed from a money lender,  one will also be considered financially embarrassed.

So a civil servant must be careful to take only secured loans like housing or car loans. Other loans such as education loan, renovation loan is also allowed.  Unsecured loans like balance transfer or credit cards must be capped at 3 months salary.

A civil servant who is financially embarrassed must declare.


Check out other posts related to the civil service:

1. Civil Service Bonus for 2020

2. Civil Service Payscale

3. Credit Checks and Credit Bureau in Singapore (Bet you did not know that your credit report is actually available and compiled by certain agencies)

Civil servants in Singapore, like anyone else, can experience financial difficulties due to a variety of reasons, such as job loss, medical expenses, or overspending. While the job security and steady income that comes with being a civil servant may provide some financial stability, it is still important to practice good financial management and plan for unexpected events.

To avoid financial embarrassment, civil servants in Singapore can take the following steps:

Budgeting: Create a budget and stick to it, to ensure that expenses do not exceed income. This can help to avoid overspending and build up savings for unexpected events.

Debt Management: If necessary, seek help to manage debt and prioritize repayments.

Savings: Build up emergency savings to cover unexpected expenses, such as job loss or medical expenses.

Investment: Consider investing in diversified portfolios to grow wealth over the long term.

Financial Planning: Seek professional advice to develop a comprehensive financial plan that takes into account one's current financial situation, goals, and risk tolerance.

In conclusion, financial embarrassment can have a negative impact on personal and professional lives. Civil servants in Singapore, like anyone else, should be concerned about financial embarrassment and take steps to avoid it, such as budgeting, debt management, savings, investment, and financial planning.

Rental Income or Dividend Income

Which is better? Rental income or dividend income?

Having both rental income and dividend income,  I can say that I actually prefer to collect dividend income.

In Singapore, I don't have to pay taxes on dividends. But I have to pay taxes on my rental income.

Also, rental income is taxed at one's income bracket and that results in a lower yield from whatever rent I collect. 

If using a housing/ real estate agent, one also has to pay the agent commission ranging from 1 to 1.5 months rental.  This alone can be quite significant.

In terms of passiveness,  there is work involved too in terms of finding tenants paperwork, etc.

On the other hand,  dividend income is fairly straightforward.  No taxes,  no hefty commissions to be paid, and relative ease in terms of monitoring (assuming one is buying a good quality income).

This is not investment advice. Purely stating my preference as a very lazy investor.

Still Alive & Kicking

Haven't written in a long while. The last time I logged in to blog was probably 1-2 years back.

Everything is fine.  Just saying hi to all my readers. 

Still alive and kicking!

Starting Pay for Fresh University Graduate

So what is the starting pay for university graduates that are fresh out of university?

In 2017, the median salary for fresh graduates was $3,400. This is as compared to $3,300 in year 2016.

The top gross salary went (not surprisingly) to law degree holders from NUS and SMU, medicine from NUS, and those who did a double degree in business and computing from NTU. These earned  $5,000 per month.

Computer Science and dental surgery ranked 2nd and 3rd respectively at  $4,285 and $4,050.

The survey results are quite surprising I must admit.  But it shows that computing is probably in great demand for a variety of sectors in Singapore's economy.  With the rise of fields such as data analytics, machine intelligence and cybersecurity, these graduates are probably well - placed to take advantage of the digital economy.

The usual suspects of law, medicine and dentistry naturally command a high pay.

New Property Launch: Is Artra worth the buy?

The showroom at ARTRA was packed on Saturday. I will not be surprised if the units are almost 80 of 90% sold.

Besides boasting a really good location just beside Redhill MRT, it also has quite a hefty price.

All units are selling for around $1,5xx psf.

Indicative price:-

Type A, 2 bedroom + Study, from S$1,19X,XXX
Type B, 3 bedroom, from S$1,59X,XXX
Type C, 3 bedroom + Study, from S$1,79X,XXX
Type D, 3 bedroom + Study + Private Lift Lobby, from S$2,09X,XXX

Income Tax

"Off to pay my taxes"

Gold Prices - Are They Headed Higher?

Since the Trump election, gold prices have been slowly gaining ground. Just recently, Citigroup head of metals and research, David Wilson, gave his views that gold prices could be headed towards $1,300.

Let's take a look at this wonderful graphic below, originally from this source on gold IRAs, to see how gold prices have moved with various significant events since 2008.

Will gold prices head higher with all the uncertainty? Or is there going to be a renewed phase of economic growth that might stop gold prices from rising further? With low interest rates coming to an end, will gold prices stabilise?

Let me know your thoughts.

How Much Savings Should I Have at 35

How much savings should one have at age 35? I think that is an interesting question that demands a good answer.

I was recently browsing an article when I came across something that caught my attention.

The article was giving a rule of thumb on how much one should have saved at age 35, 45, 55 and 65.

I am not too sure whether I recall the figures correctly but it stated that these were the sums required:
- @ age 35 = 1 times your annual income
- @ age 45 = 3 times your annual income
- @ age 55 = 5 times your annual income
- @ age 65 = 8 times your annual income

Saving in gold bullion perhaps?

What this means is that if you have an annual income of say, $100,000, you should have saved the same amount by age 35. At age 45, you should have saved $300,000 (3 times annual income). And at age 55 and 65, $500,000 and $800,000 respectively. This assumes no income growth.

I am wondering whether this is a realistic sum. I personally think it sounds realistic because assuming the person retires with am annual income of $200,000 , it means that he should have saved $1.6 million. Not very high but definitely a stretched and achievable target.

What do you think?

Chay Yan Street @ Tiong Bahru

A little late to the scene but I recently discovered the beauty and charm of Tiong Bahru. Lots of hipster cafes have sprouted up over the years in this enclave where old shophouses sit quietly with towering and swanky new condominiums as the backdrop.

I managed to visit Plain Vanilla bakery at Yong Siak Street (which comes right after Chay Yan Street). They are supposed to be famous for their cupcakes and one cost $3.90. Lots of tourist and locals but still managed to find a seat inside a room called "the Workshop". I guess the locals have sort of vacated this area in search of the latest "in-thing" so it was much quieter than I expected even though it was a Sunday afternoon.

When I was walking back to the car, I managed to catch this lovely shot.

Back view of old house with spiral staircase along Chay Yan Street.

Apparently, Chay Yan Street is named after a rubber plantation owner.

Queries from readers

Just sharing some email queries from readers that I have answered over the years. These queries were sent via email. Have removed names.

==

Hi

I chanced upon your site and would like to ask if the stock dividends is going to be paid out in Dec for example, when should we buy in?

Thanks
XXX
===

Hi XXX,


You have to buy the stock before it is ex-dividend to be entitled to the dividends.  Stocks which are ex-dividend will have XD beside the stock name in SGX website.


If you are talking about dividend capture strategy, then it is more difficult.  I personally find it hard to determine a correct entry point to buy-in to get the dividend/sell at a profit larger than what the dividend would have been.  If you are buying a stock for the dividends, I guess it does not really matter when you buy in.  Of course, some basic Technical Analysis might help in the long run.


Regards,

FF

===

Hi FF

Thanks for your email.

So if I spot that there is a ex-dividend stock, and if I buy in, will I be entitled to the dividends? Or would it already be too late?

Thanks
XXX

==
Hi XXX,


It will be too late by the time it is shown as XD

Budget 2017 - Housing Grants for HDB

A good snapshot of the housing grant changes announced in Budget 2017 by Finance Minister Heng Swee Keat.

(Source: HDB)

Just Contributed More Money To SRS Account

I just contributed another lump sum of monies to my SRS account. There are good reasons for me to do so since I get to enjoy tax reliefs and will end up paying less taxes for the next year.

I figure that I have contributed about $10000 and upwards so far this year to my SRS account. There is a cap to how much relief I can claim so I will probably max that out by end this year ( which really does not give me much time!).

I have also maxed out my CPF minimum sum top up by contributing $7000.

Good tax reliefs so why not?

Interest Income for November 2016

Really need to get into habit of recording down my dividends and interest income. As some of you might be aware, I have been relying on banks promotional interest rates or bonus interest to get higher rates for my savings account.

For November 2016, I managed to get $179 from my OCBC360 account. Not bad if you ask me.

How Much CPF is Deducted from Salary

Ask around and you will be surprised that not many people actually know how much money is deducted from their salary for contribution to their CPF account.

The CPF salary ceiling in 2016 is $6000. This means that only the first $6000 you earn in a month attracts CPF contributions. For an employee below age 55, it will mean a total of 20% of $6000 is deducted from his gross salary for CPF. The amount deducted is therefore $1200.

Employers contribute 17% and that translates to $1020.

So the CPF deducted from one's gross salary is $1200 while the employer contributes $1020 (assuming one earns $6000 or more a month).

How Much is Registered Mail in Singapore

Registered mail in Singapore is offered by Singpost  if it's basically a sign-for on delivery service that requires the recipient to sign an acknowledgement slip before getting the mail.

The mail will be delivered to the address and if nobody is home, a slip of paper informs that the postman had been there and the mail is waiting for collection at some post office.

In Singapore, registered mail will cost an additional $2.24 over the normal mail delivery price. The weight limit is also capped at 2kg.

Time to Top Up CPF and SRS

Cannot believe that the year is almost coming to a close. Anyway, it is the time of the year to stay putting my finances in order again. And one of those tasks is taking what available spare cash I have to top up my CPF Special Account under the retirement sum top up scheme. Just maxed it out to $7000 since that is the max I can claim tax relief for.

The next step will be to top up my own SRS account as well as my wife's CPF account. All these helps to reduce the taxes that I need to pay. If you all me, I think it is almost a no-brainer that this should be one of the basic steps in retirement planning in Singapore.

5 Ways to Save Money on Your Airbnb Booking

Airbnb is great for budget holidays outside Singapore until the unexpected costs come creeping in. Airbnb is a lifesaver when it comes to budget holidays. With hotels charging typically S$200+ per night or more in major cities, most of us can’t afford longer stays if not for renting. And if you’re racking up miles, there are a number of air miles credit cards that will give you points for making Airbnb bookings. Stay in an Airbnb apartment a one or two week often enough, and those points might mean a free flight ticket to a whole other location. All that aside, do watch out for some unexpected costs. Keep these under control and Airbnb will be an extraordinary budget tool for vacations:

1. Huge Transport Costs from Not Checking the Address

Even if the landlord doesn’t disclose the exact address, be sure to ask for a few local landmarks or the name of the neighbourhood. Remember that in large cities, you can rack up monstrous transport costs if you’re staying in a far-flung corner of the city. If you’re staying New York for example, there’s no point finding a cheap rental unit in the Bronx at S$90 a night, and then realising you need to waste an hour on a train ride or pay S$12+ for a cab to central Manhattan. Over a week, you’ll spend as much as you would on a more central apartment, and lose time besides. A simple way around this is to ask the host how much it costs to get to different places from the residence you’re staying in.

2. No Wi-Fi

If you’re on a working trip and you need the Internet to function, be sure to clarify that your host has wi-fi access. Otherwise, you will be spending a lot of money at cafes with wi-fi (you need to buy endless cups of coffee to justify sitting there), or probably over S$100 to get a prepaid, unlimited data plan. That’s assuming such an option exists wherever you’re going.

3. Cash Deposits

Some landlords will set a cash deposit as a term. As far as possible, avoid these people. Find someone else to rent from, unless you are truly desperate and don’t mind the possibility of never seeing the deposit again. Putting down a cash deposit means you have to leave when the landlord is around, to get your deposit back. If you leave and later try to get your deposit by mail or wire, good luck; you’re dependent on the good nature of the landlord. Some landlords will also make up excuses to deduct from your deposit, by citing “damages” or “losses”. The amount of the deposit and the involvement of a foreign jurisdiction will make it hard for you to fight for the money back.

4. An Absent Host

A lot of unexpected costs creep up when the host is absent. For example, what if you’re in London in December (i.e. in winter) and the heater system breaks? Or what if, due to theft or absent-mindedness, you misplace the keys and the host is far away in Hong Kong? These little accidents can cost hundreds or thousands of dollars, as they typically mean you will end up in a hotel. So if you can get used to the company, go for a hosted apartment.

5. Water, Toilet Paper, and Other Critical Amenities

Some Airbnb units come to you completely bare: no water (in some countries bottled water may be a necessity), no toilet paper, no food in the fridge, etc. If you are used to hotels, this may catch you off-guard; and your first night will be spent buying toiletries, stocking the fridge, and other essentials. Factor the cost of these into your trip, when comparing prices. If you really hate wasting time and money on these things, and the price difference is not too great, a cheap hotel may be better.

 [This article was kindly provided by SingSaver.com.sg]

MAS makes saving for retirement easier

The average Singaporean can now get corporate bonds for their retirement portfolio, which yield better returns than a fixed deposit. In a little-noticed Business Times page, it was reported that the Monetary Authority of Singapore (MAS) now allows retail investors to buy corporate bonds. The average Singaporean doesn’t know much about these, so it was ignored. But what you should realise is that financial planning for retirement became much easier now that you can purchase corporate bonds.



What is a Corporate Bond Anyway?

Companies need capital to run. Before they can start manufacturing, for example, they need to hire employees, buy factory equipment, and find warehouse space. There are two ways a company can get capital. The first is to sell shares in the company, and that’s what the stock market is about. However, they cannot sell too many shares, as they would lose ownership of the company to the shareholders. The second way is through debt (borrowing). Instead of getting money from a bank, a company can choose to borrow by issuing a bond. The bond is a promise to pay back the bond-holder a given sum, at a certain time. In return for loaning this money, the bondholder also gets paid interest, in the form of a coupon.

Why Are Corporate Bonds in Singapore a Big Deal?

Investment grade bonds (bonds issued by big companies that are highly unlikely to fail) are a favourite asset for older investors, for reasons we will describe below. Bonds can be an excellent alternative to just keeping your money in a bank. The interest rate in a corporate bond is much higher than that of any bank account (it’s easy to get five per cent per annum). Unlike stocks, the income they provide does not fluctuate. The company must pay you back, regardless of how well or how poorly they performed that year. For the longest time however, corporate bonds were the province of the rich. Many of these bonds require upward of S$200,000, which the average Singaporean could never afford.This has always been a little unfair, as it means richer people have access to a retirement asset that regular people don’t. Today however, MAS has a new system that makes it easier for corporations to sell bonds to the average Singaporean (retail investors), while still keeping us relatively safe from risks. Pretty soon, we may see corporate bonds that are available for just S$1,000 and up.

How Do You Get Money Out of a Bond?

The only bond types available to retail investors will be vanilla bonds. This is how they work: Say you buy a bond with a par value of S$1,000, and the coupon (interest rate) is five per cent. The bond is for five years. This means you will get five per cent of S$1,000 (S$50) a year for five years, after which you will be paid the par value (S$1,000). In essence, you are loaning the company S$1,000 now, and getting back S$1,250 in five years. Note that the coupon is often paid semi-annually. In the above example, you might get S$25 every six months. If you were to use a fixed deposit, with a typical interest rate of 0.8 per cent, then at the five years your S$1,000 will only grow to around S$1,035.

Why Are Bonds Great for Retirees and Older Investors?

Unlike mutual funds or picking stocks, bonds provide a reliable fixed income stream. Shares do not always pay out dividends, as it depends on how well the company is performing. Likewise, mutual funds have volatile returns. As we get older, it becomes more important to focus on protecting our wealth instead of growing it. Bonds are one of the most important ways to do this, and many financial advisors will rebalance a portfolio to include more bonds than stocks after retirement. On the flip side, note that most financial advisors do not recommend heavy use of vanilla bonds for younger investors, who are in their 20s. This is because vanilla bonds may not cope with the rate of inflation, and the returns are low compared to stocks.



But Are Corporate Bonds Safe?

Under the new MAS framework, the bonds are only available to the public after they have been bought by institutional investors (e.g. an insurance company) or other accredited investors for six months. This means that more professional investors will take the initial risk to determine if it’s safe. The bonds available to the public are also investment grade bonds. They are rated and tested by Credit Rating Agencies (CRAs), and are not speculative in nature (what we call “junk bonds”). That said, there are two main risks inherent in bonds. The first is inflation rate risk. S$500 today is worth much less than S$500 in the year 2050, as the cost of goods always rises. But because the payout and par value of a vanilla bond do not change, they do not rise with inflation. You may not be making enough money to provide for your retirement if you just rely on bonds. The second risk is default risk. There is a chance that the bond-issuer may go bankrupt, or be unable to fulfill its loan repayments. The chances of this happening are small when it comes to investment grade bonds, far less than one per cent. Investment grade bonds tend to come from large, well-established companies. Also, a bondholder is in a safer position than a shareholder. If the bond-issuer declares bankruptcy and is liquidated (which means all its assets are sold off), bondholders are paid before shareholders. Overall, the low risk posed by investment grade corporate bonds, coupled with an interest rate that beats the banks, will be of interest to older investors. Once the new bonds start filling the market, it may be a good idea to call your financial advisor and ask about them.

 [Article from SingSaver.com.sg]

What is Asbestos?

Having often heard and read about some of the risks of property management, I often heard the phrase about people finding asbestos in the roof.  For the longest time, I had no clue on what asbestos is and always assumed that it was just some kind of fungus that grew on roofs and which was costly to remove or repair.

Lately, I did a little research on asbestos again and realised why it is such a huge concern.

What is Asbestos?

Asbestos is a naturally occurring mineral that is often used in buildings because of their desirable physical properties.  The use of asbestos became more common in the 19th century though there have been records of its use even during early history.  Amongst abestos desirable properties include its sound adsorption, affordability and its resistance to fire and heat.

Asbestos was/is used in a wide range of products from plaster, tiles, fire blankets, baby powder, thermal pipe insulation, etc.


What so dangerous about Asbestos?  

Studies have shown that asbestos is carcinogenic - cancer causing.  It causes malignant mesothelioma which is a cancerous tumour of the lung and chest cavity or lining of the abdomen. Asbestos exposure becomes dangerous when it is airborne due to deterioration or damage.  While building occupants can be in danger if they are exposed to it, those most at risk are often the people who disturb it - that is the construction or maintenance workers.  People working in housekeeping might also unknowingly come into contact with asbestos when cleaning things up.

However, with a long latent period between exposure and the first signs of cancer, most people who are exposed to it do not develop cancer until many years later. It is believed that just a small amount of exposure to asbestos will almost certainly lead to the development of malignant mesothelioma.

In Sept 11, 2001, when the World Trade Centre collapsed after the terrorist attacks, a large amount of asbestos was also believed to be released into the air.  Many people believe that the after-effects of this asbestos will probably kill more people compared to those who died on the actual day.  This probably also explains the high death rates (post Sept 11) of emergency workers who were working on site that fateful day.

The use of asbestos has been banned in many countries.  Unfortunately, most bans only came in place during the later part of the 20th century (and some only as recent as the 21st century) so many buildings that are still around were using asbestos.  The removal of asbestos is also highly regulated in most countries since it is a potential health hazard if not properly removed.


Litigation

Analysts believe that the total cost of asbestos litigation in the US alone will reach over US$250billion.  It is currently one of the most expensive mass tort in US history as many individuals are now seeking attorneys to fight their case and make claims against negligent companies that might have exposed them to asbestos.

Building Up Retirement Funds - Two Easy Ways?

There are many ways to build up your retirement funds in Singapore. You can choose to just keep it in the bank or find other ways to make your savings grow. Well, there are actually 2 easy ways to do so that probably helps you beat the low interest paid on bank deposits.

The first way is the Singapore Savings Bond. This is basically government issued debt sold to the public every month. Minimum investment amount is $500 with a cap of $50,000. There is no penalty for cashing out early and the principal is paid at the end of 10 years. The interest paid out increases each year. Holding it to the max of 10 years will give annual average returns of 2.6%. Totally risk free since they are backed by Singapore government

The second method I can think of is to top up your CPF account or even your spouse CPF account. You can claim tax relief ( up to $7000) and you can enjoy 4 to 5% interest depending on how much you have in your CPF. Problem is that you will only be able to touch it many years later at your drawdown age when CPF Life kicks in for you.

So what do you think about the two ways I have outlined? Leave your comments below!

How Much Can I Borrow for Car Loan in Singapore

Ever wondered how much you can borrow for your car loan in Singapore?

Well, on 26 May 2016, MAS announced that it will be easing its rules on motor vehicle financing. This involved the relaxation of both the loan-to-valuation (LTV) as well as the loan tenure.

For motor vehicles with open market value of less than our equal to $20,000, the LTV is now up to 70% from the previous 60%. For those with open market value greater than $20,000, the LTV is now up to 60% from previous 50%.

The maximum loan tenure has also been increased from 5 years to 7 years.

This changes basically means that one is allowed to borrow more and pay a smaller monthly instalment for one's car loan.

Brexit - The unexpected has happened

Well, Brexit has happened and it was really unexpected (at least to me). I had assumed that British common sense would have prevailed even though the opinion polls showed that it was an even split between the Leave and Remain camps leading up to the 23 June referendum.

What struck me was how the markets were actually moving up in anticipation that Remain would win, only for the vote count to reveal otherwise.

The fact that some British people were still googling "What is the EU?" after the referendum only shows how ignorant some people might have been. I think many of those in the Leave camp were probably not entirely clear on what the implications were. They wanted more autonomy, but now probably feel that this is coming at a cost.

Markets dived down sharply on 24th June. One of the worst crashes I have seen so far. The pound also lost quite a bit of its value. I recall seeing FTSE 100 dropping around 7%. It hit a low of 5788.70 but managed to recover some ground on 24th and 27th June. 28th June, the FTSE100 seems to be recovering and is trending up at around 2.6% even as I write. Most Asian markets have avoided a steeper fall on 27th and 28th June. The Nikkei 225 which was the worst hit on 24th June has also recovered some ground.

But only time will tell whether all these new risk factors play out.

As of now, we know that David Cameron will be stepping down as Prime Minister. Even the Labour Party Jeremy Corbyn faces a vote of no confidence. Jonathan Hill has also stepped down as British Commissioner to EU.  Political uncertainty abounds and we can be certain that general elections would be called soon.

Meanwhile, the UK has also had its credit rating cut by S&P and Fitch. S&P had said that the leave result would "weaken the predictability, stability, and effectiveness of policy making in the UK".

David Cameron in his addressee to the House of Commons has also told MPs that negotiating an exit would be the civil service's most complex and important tasks for decades.

Meanwhile, Merkel has already fired off a warning shot that there shall be no "cherry-picking". UK thus does not get to choose market access while rejecting the free flow of people.

Too many moving parts in the coming months and years ahead. A Brexit negotiation might not be done for many more years to come. The two years provision under Article 50 might not be enough.