Population woes

[Lilac66]

limlim:

3Boys:

Don't just stop here and forget everything else I wrote.

I don't type as fast as you.

Somehow this just tickles me.. :rotflmao: It's like during a debate whereby one speaker says, \"I don't speak as fast as you\"..

Oops.. :oops:

Nevermind about me, just carry on.

[3Boys]

limlim:

3Boy, I do not discount what you wrote about biz operations.


I just want to clarify why my views towards importing foreign labor with regards to FW & FT is different.

But you keep repeating over and over and over, \"if all those companies are so profitable, why don't they pay more.\"

You say \"Landlords should bite the bullet\".

I mean, do you even know what you are asking for?

[limlim]

3Boys:

limlim:

3Boy, I do not discount what you wrote about biz operations.


I just want to clarify why my views towards importing foreign labor with regards to FW & FT is different.

But you keep repeating over and over and over, \"if all those companies are so profitable, why don't they pay more.\"

You say \"Landlords should bite the bullet\".

I mean, do you even know what you are asking for?

Just saying.. I mentioned before, most pple like me are only exposed to 1 side of the story most of the time.. you cannot expect any layman to be economic or biz experts.

Does it mean layman cannot comment? cannot post in forums? No right?.......

It also created opportunity for you to share the \"other\" side of the story for readers who may never post. Isn't it?

You mentioned \"vacuum of understanding of how business\" work.. ok lor.. I'm not a businessman so not going to dispute that.

no need get so worked up mah..

Anyway, I guess the govt knows best how to deal with it.. I don't want to debate further as I have nothing constructive to add at the moment. Also not free to dig deeper.. I'll trust them in their judgement for now.

[WeiHan]

I am quite surprise that Singapore is keeping a strong currency policy which inadvertently hurt the competitiveness of our SMEs. I get the sense that export is not the top priority of the government anymore but attracting money that will like to park in Singapore is. The world is in a currency war, almost all countries are trying to devalue their own currencies so that their export becomes competitive…I wonder why Singapore is the exception?


But even with a strong currency, our inflation is already so high, what if we have a weaker currency, wouldn’t price just shoot to the sky?

[mamago]

WeiHan:

I get the sense that export is not the top priority of the government anymore but attracting money that will like to park in Singapore is.

This, is very true. (Kudos that you mentioned it.)

Foreign Investors' assets (e.g.. fixed and non-fixed, monies etc) appreciate to off set the low margin biz profit in SG.... a very capable economic board we have.

WeiHan:

The world is in a currency war, almost all countries are trying to devalue their own currencies so that their export becomes competitive....I wonder why Singapore is the exception?

But even with a strong currency, our inflation is already so high, what if we have a weaker currency, wouldn't price just shoot to the sky?

The countries that devalue their currencies are apparently not doing well.

China Yuan, pegged with USD at 8.3, was gate crashed... market force!



To add, people bear the biggest lost if the country economy is in the recess mode.

[3Boys]

WeiHan:

I am quite surprise that Singapore is keeping a strong currency policy which inadvertently hurt the competitiveness of our SMEs. I get the sense that export is not the top priority of the government anymore but attracting money that will like to park in Singapore is. The world is in a currency war, almost all countries are trying to devalue their own currencies so that their export becomes competitive....I wonder why Singapore is the exception?


But even with a strong currency, our inflation is already so high, what if we have a weaker currency, wouldn't price just shoot to the sky?

We are between a rock and a hard place, and I lay the blame on this squarely on the US government for their QEs. Savers are being brutalised everywhere, asset bubbles sprouting all over the place and monetary authorities worldwide are being forced to react with difficult monetary policies. If we weaken our currency, inflation will shoot through the roof, as you say.

Export competitiveness is a pain and the g'ment is well aware, but inflation HAS to be the priority right now or the bubbles that build will prick at some point and crash the economy.

[WeiHan]

3Boys:

WeiHan:

I am quite surprise that Singapore is keeping a strong currency policy which inadvertently hurt the competitiveness of our SMEs. I get the sense that export is not the top priority of the government anymore but attracting money that will like to park in Singapore is. The world is in a currency war, almost all countries are trying to devalue their own currencies so that their export becomes competitive....I wonder why Singapore is the exception?


But even with a strong currency, our inflation is already so high, what if we have a weaker currency, wouldn't price just shoot to the sky?

We are between a rock and a hard place, and I lay the blame on this squarely on the US government for their QEs. Savers are being brutalised everywhere, asset bubbles sprouting all over the place and monetary authorities worldwide are being forced to react with difficult monetary policies. If we weaken our currency, inflation will shoot through the roof, as you say.

Export competitiveness is a pain and the g'ment is well aware, but inflation HAS to be the priority right now or the bubbles that build will prick at some point and crash the economy.

But our inflation is still as high as places that devalue their currencies, specifically due to two areas- high COEs and rising property rental. From an interesting point of view, the policy makers have isolated inflation in two specific areas which are non-essential items and would least affect average folks. However, inflation will still diffuse through the system from high property rental. Shops that pay high rental will sooner or later have to raise the price of the items that they sell to customers.

Western countries like France and some states in USA are raising tax of the riches. Taxes can be as high as 60% for companies that make profit beyond certain number. The move inadvertently drives out wealth that seek safe haven elsewhere in the world like Singapore. In near future, expect more wealth seeking safe heaven in Singapore. I don't mind companies like Hermes setting up regional HQ in Singapore as it produces jobs but unproductive money that pushes up property price is useless to ordinary folks. By keeping our currency strong, we will just be protecting this group of rich people. On the other hand, failing SMEs affect working class. I hope government will be discerning in the type of money that is arriving at our shore.

[WeiHan]

mamago:

The countries that devalue their currencies are apparently not doing well.

China and Japan tries to devalue their currencies so that their export can remain competitive.

USA devalues its currencies so that it can inflate away its debt which it can't afford to pay off.

Different reasons for printing money.

[3Boys]

WeiHan:

3Boys:

[quote=\"WeiHan\"]I am quite surprise that Singapore is keeping a strong currency policy which inadvertently hurt the competitiveness of our SMEs. I get the sense that export is not the top priority of the government anymore but attracting money that will like to park in Singapore is. The world is in a currency war, almost all countries are trying to devalue their own currencies so that their export becomes competitive....I wonder why Singapore is the exception?


But even with a strong currency, our inflation is already so high, what if we have a weaker currency, wouldn't price just shoot to the sky?

We are between a rock and a hard place, and I lay the blame on this squarely on the US government for their QEs. Savers are being brutalised everywhere, asset bubbles sprouting all over the place and monetary authorities worldwide are being forced to react with difficult monetary policies. If we weaken our currency, inflation will shoot through the roof, as you say.

Export competitiveness is a pain and the g'ment is well aware, but inflation HAS to be the priority right now or the bubbles that build will prick at some point and crash the economy.

But our inflation is still as high as places that devalue their currencies, specifically due to two areas- high COEs and rising property rental. From an interesting point of view, the policy makers have isolated inflation in two specific areas which are non-essential items and would least affect average folks. However, inflation will still diffuse through the system from high property rental. Shops that pay high rental will sooner or later have to raise the price of the items that they sell to customers.

Western countries like France and some states in USA are raising tax of the riches. Taxes can be as high as 60% for companies that make profit beyond certain number. The move inadvertently drives out wealth that seek safe haven elsewhere in the world like Singapore. In near future, expect more wealth seeking safe heaven in Singapore. I don't mind companies like Hermes setting up regional HQ in Singapore as it produces jobs but unproductive money that pushes up property price is useless to ordinary folks. By keeping our currency strong, we will just be protecting this group of rich people. On the other hand, failing SMEs affect working class. I hope government will be discerning in the type of money that is arriving at our shore.[/quote]I disagree with your analysis. I don't see how keeping our currency strong protects them at all, particularly as it is clear that this is by no means a long term strategy. The fact that we are a a safe haven is due to our stable political situation and economy. Or would you prefer that we were not a safe haven?

How does high tax rate drive 'money' out of a country? It drives people out and it drives businesses out. But money? If you live in one country and invest in another, you are generally still liable for domestic taxes on foreign investments, are you not?

I don't our g'ment has any interest in attracting 'hot' money.
The policy measures they have put in place to dampen foreigners buying property here are already fairly draconian.

I think our g'ment is pretty smart in these matters, I'd trust them to do the right thing.

[pirate]

WeiHan:

But our inflation is still as high as places that devalue their currencies, specifically due to two areas- high COEs and rising property rental. From an interesting point of view, the policy makers have isolated inflation in two specific areas which are non-essential items and would least affect average folks. However, inflation will still diffuse through the system from high property rental. Shops that pay high rental will sooner or later have to raise the price of the items that they sell to customers.

High COEs are due to the boom and bust cycle of car scrapping, and the miscalculation a few years back of sustainable vehicle population growth rate.

High property values do not necessarily translate to high property rental. The market rent is not going to go up just because buyers decide to pay ever higher prices. Rental yields can just come down. For example, yields for commercial properties used to be 5%-8%. Now, it has come down to 2%-5%. Prices have climbed faster than rent in the last 2-3 years.

The 10% additional buyer's stamp duty for non residents and companies buying residential property is designed to discourage hot flow of foreign QE money into residential property. It may be extended to non-residential property or increased if the government thinks that it is not enough.

But with interest rates on savings not keeping with inflation, it is likely that people will continue to put their money into real assets like property.

The most recent round of tightening mortgage loan tenures and loan-to-value ratio is meant to prevent people from jumping into the property party with money they do not have and cannot afford to lose when the music stops. As to when and at what level it will stop...

Good luck to everybody!