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Will Straits Times Index Break Through in Second Quarter? The Straits Times Index has risen over 3% since the beginning of this year. While it performs better than the Hang Seng Index, it is far behind the US and Japan stock markets, and neighbouring countries like Indonesia and Thailand as well. What are the reasons behind this? As the Cyprus crisis sees temporal resolution, the US economy gets on its recovery path, and China’s economy being expected to pick up under the new leadership, will the Singapore stock market achieve a better performance in the second quarter? Which are the sectors to watch? Achieving Work-Life Balance? The Ministry of Manpower has combined the existing three work-life schemes into one, assisting enterprises on pro-family job arrangements and job scope redesigning to encourage employers to hire more Singaporeans. In the sport light: a cable laying company offers its employees pleasure-crafts benefits during weekends, and the flexibility for parents to bring their children along to work on weekdays; a hotelier that observes 5-days work weeks. How do these steps to improve work-life balance by these companies sharpen their competitive edge?
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The New Singapore Budget The newly announced 2013 budget dished out a handful of incentives to help Singaporeans cope with the rising cost of living and business costs. At the same time, it also accentuates the need to restructure the economy for sustainable growth and the foreign workers policy is once again tightened, and businesses are encouraged to increase productivity. Money Week speaks to local companies which have taken the initiative to streamline their processes to raise productivity and return. A Double Whammy COE Cooling measureA new tiered system for Additional Registration Fee (ARF) was introduced in this year’s 2013 budget, making luxury car buyers pay a higher tax. On top of this, the Monetary Authority of Singapore also introduced new rules on car loans and buyers are now required to make a down payment of at least 40% of the purchase price and the maximum tenure for a car loan is capped at five years. Will the tiered ARF and new financing curbs have a double-whammy effect on certificate of entitlement (COE) prices? And how are buyers and car dealers reacting to this?
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The Neighbourhood CNY Markets As Chinese New Year approaches, the crowds in neighhourhood CNY markets are gradually increasing. However, the gloomy economic outlook ahead sees consumers taking more caution on spending, and some stall owners have also reported that the prices of most items, from candies, cookies to fruits have all increased in prices as well. Will there be a last minute shopping spree to boost the overall consumer expenditure, to a level comparable to last year? Mapping Singapore’s FutureBy 2030, the population of Singapore is projected to reach 6.9 million, up from the current 5.3 million. To cope with the increase in population, 700,000 additional homes are planned and the rail network will be doubled. How will Singapore’s economy evolve in the next 17 years? Which are the sectors poised to benefit from this? And how should Singaporeans prepare to adapt to the developments?
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Will Private Property Market Lose Steam in 2013? Singapore’s economy averted a technical recession growing 1.8% quarter-on-quarter in the last quarter of 2012. Private property prices have also increased 1.8% in the same quarter a 2.8% increase for the full year. This is the smallest price increase since 2009, a result of 6 rounds of cooling measures introduced in the last few years to cool the red hot property market and with more sites for development sold to meet demand. More than 34 thousand new units of flats will be completed in this year and the next; will the private property market lose steam in the new year because of this abundant supply, coupled with a gloomy economy outlook ahead?Financial Planning 101: Technical Analysis While fundamental analysis observes a company's business operations and its macro environment to determine the worth of a stock, technical analysis uses historical stock price trends instead. Fundamental analysis requires 2 to 3 years of data to make a reasonable judgement; what about technical analysis? And for novices, how do they learn more of this analytical tool?
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Buy4YouIn the past two to three years, there is a quiet surge of online companies that act as middlemen to help customers in Singapore shop on Chinese e-commerce websites. The operations of these middlemen companies expanded rapidly, from just two to three staff to more than a hundred employees, with more than ten thousand registered members comprising more than 90% local Singaporeans. Money Week explores the sudden emergence of these online shopping companies and analyses how they effectively capture the heart of local customers. Financial Planning 101: Getting the Fair Value of a Stock via Expected Cash Flow and Dividend Besides looking at the profits and asset value of a company, investors may also use the expected cash flow and dividends to be distributed to calculate or estimate the fair value of the company’s share prices. How is the future cash flow and the dividends to be distributed estimated? And how are these figures used to calculate the fair value?
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Singapore Budget Look Ahead In response to the government's call to local enterprises to improve their capabilities, a local coffee importer tried to break free of convention methods and successfully improved productivity, with the staff benefitting with a better pay as a result. In the Budget to be announced next Monday, the government is expected to announce more measures to help local enterprises improve operations. What are the expectations of the local firms?Financial Planning 101: Combine Various Technical Analysis ToolsFinancial technical analysis tools are aplenty, and each has its own purpose. As market trends and stock price movements do not conform to a fixed pattern, investors often need to employ a few technical analysis tools to identify future market and stock trends and patterns. How should a novice combine these tools and put them to effective use?
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Modern Food Businesses in Old Coffeeshop High rental rates have pushed some new entrants in the food business to innovate in their location search. One emerging trend is operating a food business out of traditional coffeeshops, even though such locations may not sync well with the business image. What are the pros and cons of operating modern food businesses out of old coffeeshops?Financial Planning 101: Technical Analysis Has Emotions Too?Besides using the Moving Average, the Moving Average Convergence / Divergence (MACD) can also be used to project market or stock prices, if they will keep to the current price trend. And the MACD has been known to produce two facial expressions: a sad face and a smiley face; what do the two expressions mean? If the market or stock price goes sideways, the Stochastics and Relative Strength Index are able to signal the price trends. What are the similarities and differences of these two indicators?
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What Stocks To Buy in 2013? The Straits Times Index (STI) gained 20% year-to-date, making it one of the top performing regional indices, out-performing the US three most followed indices and some of the major European markets. Can the local stock market maintain its upward momentum in 2013? And for sectors which delivered stellar performance this year, like the REITs and oil and offshore marine, how are they likely to perform in the new year? And which are the sectors to avoid? Where To Park Your Money in 2013? In 2013, the US economy is likely to be on the mend; while the Chinese economy expects to regain its growth momentum under a new leadership, Europe is possibly the only major economic engine that will continue its lackluster performance. One thing in common among these economic powers though, is that their central banks are adopting a loose monetary policy to spur growth. Under such economic backdrop, where should investors park their money? Between regional equities, fixed income instruments, currencies and commodities, which asset class is likely to best reward investors? Financial Planning 101: Simplified CPF Life SchemeFrom January 2013, the CPF Life scheme will be simplified into two plans, namely the Standard Plan and the Basic Plan. What are the differences between the two plans? How should a CPF member decide on the best plan?
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Enhanced Support For SMEsThe government has announced a series of new measures to enhance support for small and medium enterprises (SMEs). In specific, it aims to improve productivity and innovation, promote industry collaboration, create a more conducive business environment, as well as encourage internationalisation. With this strong support from the government, how do SMEs seize these opportunities, to harness their competitive advantages? Money Week talks to a disposable wet paper towels maker and a medical technology company. Financial Planning 101: Getting the Fair Value of a Stock Using the PB ratio Besides using the price-earnings (PE) ratio, the price-to-book (PB) ratio is another commonly used metric to calculate the fair value of a stock. The PB ratio takes into consideration assets and liabilities and provides information on the value of what is left of a company if it goes bust. How do investors make use of the PB ratio to calculate the fair value of a stock?
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Food Wholesalers Moving into Retail Business In recent years, some food wholesalers have expanded into the retail segment, providing consumers with an alternative other than the wet markets and supermarkets. Why have these wholesalers moved into retail business? And how do they compete with wet markets and supermarkets?Increased Competition Among Mid-price HotelsSingapore tourism sector have been buoyant in the last few years and resulted in shortage in hotel room supply. This shortage is now alleviated as new hotels are completed. This year, another 4000 new rooms will be added into supply. With more new hotels coming on stream, how do independently-run mid price hotels compete to ensure their market share? Financial Planning 101: Candlestick in Technical AnalysisA candle brings light and warmth while a candle in technical analysis, which records 4 price levels in a trading day, may help to predict price movement. By plotting candlestick of several trading days into a chart, what information can investors get out of the chart? Many patterns can be formed in a candlestick chart: hammer, shooting star and harami cross. What do these patterns mean?
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COE Quotas Further CutThe Certificates of Entitlement (COEs) quota will be further reduced in the next six months, with quota for small cars cut by 15%. COE premiums have been on the rise in the past years due to fewer COEs available, and industry players are expecting COE premium to hit $100,000 in the near future. How do car dealers cop with falling sales as a result of fewer COEs and higher car prices which reduce affordability? For buyers who are hoping to buy a new car, when will be the opportune time to enter the market?Stock Market Look Ahead Although the world is still faced with many downside risks such as the EU debt crisis and the US economic slowdown, key stock market indicators still put up a resilient performance in 2013 despite these odds. Are investors no longer worried about economic headwinds? Will the market be able to sustain its uptrend?
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Sparkling Christmas Business OpportunitiesChristmas Day is just a few days away. This being the busiest season of the year for retailers, many are drumming up their promotion efforts to stand out from their competitors, including re-creating a snowy Christmas atmosphere in equatorial Singapore and dazzling decorations to attract crowds. With the uncertain economic outlook looming ahead, how can such promotional efforts help push up sales?Outlook of Singapore Economy in 2013While global consumers’ spending reach a year end peak, Singapore’s November export numbers saw an unexpected drop due to the weak performance of the electronics sector. This implies that Singapore economy may fall into technical recession in the last quarter of 2012. Faced with a high inflation and weak economic prospects of the main trading partners, can the Singapore economy turn the tide in 2013?Sparkling Christmas Business OpportunitiesChristmas Day is just a few days away. This being the busiest season of the year for retailers, many are drumming up their promotion efforts to stand out from their competitors, including re-creating a snowy Christmas atmosphere in equatorial Singapore and dazzling decorations to attract crowds. With the uncertain economic outlook looming ahead, how can such promotional efforts help push up sales?Outlook of Singapore Economy in 2013While global consumers’ spending reach a year end peak, Singapore’s November export numbers saw an unexpected drop due to the weak performance of the electronics sector. This implies that Singapore economy may fall into technical recession in the last quarter of 2012. Faced with a high inflation and weak economic prospects of the main trading partners, can the Singapore economy turn the tide in 2013?
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Yen Weakens, Time to Consume More on Japanese Stuff? The exchange rate of the Japanese Yen versus Singapore Dollar has weakened by nearly 10% since Shinzo Abe took over as Japan’s prime minister 3 months ago. This is a boon to local merchandisers, importing frozen meats, dried food, furniture, clothing, and ornamental items directly from Japan. How attractive are retail prices of such items in Singapore currently? And how goes Japan-travel related businesses with the weakening Japanese Yen? Financial Planning 101: How To Shop Around When Buying Shares? It’s almost certain that consumers will always shop around and conduct price comparisons in search of value-for-money products; the same theory applies for buying shares. The price-earnings (PE) ratio is one of the most commonly used metrics to gauge the worth and to calculate the fair value of a stock. How is this done, and what is the formula?
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It May Not Be All Rosy for Restaurants this Festive SeasonIt is increasingly popular for Singaporeans to catch up with family, friends and business associates over a meal during the Chinese New Year season. While it is an opportunity not to be missed for most, how do restaurants compete for a larger piece of the pie with the stiff competition around? Some restaurants, meanwhile, have decided to give this festive season business a miss due to the tight labour market. How do restaurants that are staying open tackle this problem?Financial Planning 101: The Head and Shoulder pattern Technical AnalysisThe Head and Shoulders analysis curve is one of the tools used in a trading Technical Analysis; usually an indicator that the price trend is reversing. How many trading days are needed to gather a useful head and shoulder pattern? Besides the head and shoulder analysis cruve, the double top, double bottom, triple top and triple bottom curves are also used as indicators of trend reversal. How are these patterns used by investors?
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Will HDB Resale Flat Prices Continue to Spike?HDB resale price index unexpectedly rose 2.5% in the last quarter of 2012, the highest percentage gain in the past year. The cash premium, which buyers of resale flats have to pay, also saw an increase in the same quarter. Why does the resale flat market remain buoyant despite an increased supply of new flats? How is the resale flat market likely to perform this year?Financial Planning 101: Moving Average When the stock market or a share counter trends upwards, investors would be interested to know if the uptrend is sustainable. Likewise, for a downtrend, investors would want to know how long it remains so. Analysis using the moving average may be the answer, but how do investors compute a moving average line?
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School Holiday Workshops Increase Merchants’ RevenueThe year-end school holidays comes to an end in two weeks. Many parents have been sending their children to enrichment courses to keep them occupied and to acquire new skills and knowledge for the past few weeks. A hand-made soap shop has reported that its workshop enrolment doubled this holiday season, while an inline skating camp organizer kept up its profits despite slower intakes. With two more weeks to go before the December holiday ends, what else can be done to further drive sales? With a slowing economy, can sales performances be maintained in the coming months?Financial Planning 101: Tax Savings TipsTo reduce income tax payable in year of assessment 2013, tax payers need to promptly take some actions before the year ends; These include participating in or topping up the Supplementary Retirement Account and doing cash top ups for personal and/or family members’ CPF accounts. How can doing these help to save on taxes? Besides these, what else can be done to reduce the tax burden?