The inflation rate in Singapore was reported at 5.5 percent in January 2011.
Normally, most governments use the interest rates to curb inflation. However, Singapore interest rates are still at rock bottom rates as the Singapore government uses currency exchange to manage the economy.
As a result, a lot of overly conservative investors are being taken for a ride in Singapore. Fixed deposits are at 0.5%, CPF OA 2.5%, new corporate bond issues are averagely 2%, leaving anything in deposits attract a 0.1% return, etc. All of which are eroding the value to inflation.
Investing involves risk and the market is pretty much in a side ways mode at the moment. So how else can the average Singaporean take advantage of a strengthening SGD dollar to beat inflation since Singapore uses that method of government policy.