Author: Investment Income for Life

Skills Future Credit Being Used to Eat Buffets At Hotels

The original goal of Skills Future Credit scheme aims to encourage individual ownership of skills development and lifelong learning. All Singaporeans aged 25 and above will receive S$500 credit each. Little did the government realize that some operators turned this life long learning scheme into the financing of “buffet lunch treats” for senior citizens. It is troubling to see that there seems to be an emerging trend of unscrupulous training centers targeting senior citizens to suck out the Skills Future Credit of S$500 granted. The modus operandi is to offer free hotel buffet lunch. The emphasis by the training centers...

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First REIT Q1 2019 Review: Sponsor Lippo Karawaci To Raise USD1 Billion in Funding

Since the last quarter of 2018, First REIT share price has languished and plunged more than 25% due to the Indonesian corruption probe involving its sponsor and main tenant Lippo Karawaci. At the lowest point, it dropped to S$0.92 per unit which is substantially lower from the S$1.30 per unit days. The concern over potential rental default by Lippo Karawaci over its worsening creditworthiness cast a dark cloud over First REIT. The market situation is further exacerbated by bad news that the upcoming renewal of master leases of the first few hospitals due in 2021 will be on new...

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Malaysia Keep Saying That Water Agreement Pricing Is “Morally Wrong”

I read with amusement that Mahathir and his other Malaysian officials are bashing up Singapore again. Whenever there are internal economic woes, Mahathir and his team will start chanting “bash Singapore” to distract the local population from the domestic problems back at their home in Malaysia.  Recently last week, Mohd Solihan Badri, Media director of Johor chapter of Mahathir”s Parti Pribumi Bersatu Malaysia appealed to Singaporeans to urge our government to review the prices of the water deal with Malaysia, reiterating that the agreement is “morally wrong”.  The water agreements are actually confirmed and guaranteed by both Singapore and...

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The Florence Residences Sold Only 54 Units On Launch- Sign of Slowdown in Singapore Property Market?

Since the official launch of The Florence Residences over the weekend on March 2nd, 2019, it sold only 54 units.  This represented 3.8% of total units of 1,410 being sold at this first-weekend launch. The developer’s version of the sales results is that close to 30% of units are being sold reason being that they only release 200 units. The average psf pricing is S$1,450 psf. Seems that sales results are not that ideal due to excess supply of other units launched from competitors. Riverfront Residences, Affinity at Serangoon and Garden Residences nearby also have many unsold units. Prospective buyers...

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Hyflux Impairment of S$916Mil for Tuaspring- Does it make sense?

I actually do not want to post any more topic on Hyflux as this subject has become very sensitive lately and stir up much negative feelings with the upcoming voting on creditor restructuring. But being an ex-auditor, I seriously think that our Singapore Authorities should re-look into the asset valuation framework and standard for all Singapore Companies listed on SGX so as to better protect retail investors.  In June 2018, Tuaspring carrying book value was SGD 1.47 Billion. This plummeted by SGD 916Mil within half a year for the results released as at 30 September 2018. The key question...

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Fu Yu Corp Super Hero Cash Generating Abiliites Strikes Again- Returns 100% Profits As Dividends to Loyal Shareholders

Fu Yu Corp has done it again and delivered another sterling results on its FY2018 financial performance with a 165% jump in net profit to S$11.88Mil. Just like Wolverine in X-Men with super healing, Fu Yu Corp has showcased its superpower in cash generation from its business operations. For FY2018, it has increased its dividend payout by 0.1 cents from 1.5 cents in FY2017 to 1.6cents in FY2018. This represents close to 100% of its net profit being given back to reward loyal shareholders. Based on the latest closing price of S$0.205, this is a 7.80% dividend yield for FY2018. Huge...

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Malaysia To Launch Prototype of Flying Car

Picture denotes the Thunder Hawk  flying car of a cartoon series known as Mask Malaysia has announced plans to build a flying car and launch a working prototype by end of the year using its own local technology. This is good news indeed. Earlier this month while I was in Malaysia for Lunar New Year, the trip from Yong Peng back to Singapore of typically 1.5hours ended up with 8.5 hours spent on the highway and Customs due to the severe traffic jam. With a flying car, this will beat the damn traffic jam. Militaries around the world should...

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Florence Residences at Hougang Ave 2- Mega Launch at S$1,450psf average?

Went down to The Florence Residences showflat last week to see the latest upcoming development developed by Logan Property in Hougang. This was originally a HUDC site that was being en bloc. I can still remember visiting one of the units during my search for a resales HDB during 2007/2008. The cost price of a unit then was around S$800K. If only I have bought it then, would have become an instant en bloc millionaire last year….whaha. This is a huge site that is approximately 386,000sqft in size. The developer will be building 1,410 units. The Florence Residences and is near...

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Hidden Gem with Explosive Growth- Singapore Medical Group S$10Mil Shareholder’s Loan for M&A (Part 2)

The emergence of a key shareholder offering to buy out part of the shares of the current management to increase its control and the offer of  S$10 million dollars convertible loans to finance additional Merger and Acquisition opportunities has lead to some retail investors crying foul. These group of retail investors thought that the terms and conditions were unfair and detrimental to them. The market seems to have reacted slightly negatively upon the announcement of this news on 20 February 2019 hence the sharp price rally of Singapore Medical Group (“SMG”) from the excellent FY 2018 results declined from...

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Hidden Gem with Explosive Growth- Potential Further Upside of 25% to 50% (Part 1)

Since my last posting on the enigmatic case of Singapore Medical Group which was grossly undervalued by the market on 8th January 2019, the stock price has soared by an amazing 20% around the announcement period of its Q4 2018 and full-year earnings. This was a big surprise to me as I was expecting the stock to only rally 20% by end of this year due to its lack of visibility among many investors. The small positions that I have initiated thus are giving me immediate unrealized returns that will take 2-3 years to achieve if I have instead invested in pure...

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Budget 2019 Announcement- Not much Ang Pow Given

😓😞It had been a sad week for me. I was initially very happy and excited when I read that Mr Heng Swee Keat announced during the budget announcement that there will be 50% personal income tax rebate for taxpayers.  However, my shortlived joy turned into sorrow immediately when I read the next line ” Capped at S$200″. Ok so, it turns out that the Finance Minister is only giving a tiny Ang Pow of S$200 at most for YA2019. This was so much lower than the S$500 tax rebate cap given during YA2017.  Even though there was nothing much...

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Is it Time To Buy Into Singapore Industrial REIT And Earnings Recovery Coming Soon?

Back in 2012 and 2013, I was holding on to a number of industrial REITs such as Sabana, Cache Logistics Trust and Soilbuild. I had then exited industrial REITs as I noticed that there was an upcoming avalanche of industrial space and the rental psf for these space were dropping fast due to oversupply as well as deterioration in macro-economic conditions. For example, Tampines logistics hub of a few million sqft TOP with many big boys such as DHL, Schenker, Kerry Logistics, and Sing Post E-commerce taking up space there. In 2012, a warehousing facility for rent in western Singapore was going for...

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Politics and Business Review- The Legend of Hao Ran (皓镧传)

It has been a good Lunar New Year holiday break visiting relatives and friends as well as recharging one’s human super battery in order to further one’s journey and meet the constant challenges thrown at us in our daily lives. I have no time to do any finance blogging recently as I was too busy catching the latest TV drama “The Legend of Hao Ran (皓镧传)”. The amazing thing about this drama is that it teaches everyone about how business and politics work in real life and I swear that it is even better than taking up MBA programmes....

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Investment Portfolio Updates- 1 Feb 2019 (Portfolio Yoyo With Market Bouncing Up And Down)

Stock Market Bounce Back Strongly The stock market bounced back strongly during January of 2019. Even I was surprised by the wild swing in stock market valuation in just 1 month. My portfolio including cash rallied from S$405K (based on what I documented for 31 Dec 2018) to S$445K– an increase of almost S$40K (S$32K capital gain from favorable stock market volatility and S$8K capital injection in Jan’19) which brings the overall investment back to profitability.  (i) Thai Beverage performed extremely well in January 2019 and it helped to offset the previous 2 months huge plunge in value for my First...

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Budget 2019 Goodies- General Election Singapore Also Coming In This Year?

I am looking forward to Finance Minister Heng Swee Keat’s announcement of the 2019 Singapore Budget on 18th Feb 2019 after the Lunar New Year. It was also recently announced that the registers of electors will be opened for public inspection this month. A lot of people have been speculating that the next General Election may be held in 2019 itself even though it is only due on 15 January 2021.  Maybe there will be Ang Pows given to all Citizens during the budget announcement this...

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