Author: The Fifth Person

3 Reasons Why the Ringgit Fell Below 3 against the Singapore Dollar

The Malaysian Ringgit declined sharply in the past month as the 1MDB scandal intensified and Malaysia’s prime minister responded by reshuffling his cabinet. Investor confidence in Malaysia has been eroded; the Ringgit is the worst performing Asian currency over the past 12 months. Weak oil prices also increased fears of higher fiscal deficit for 2015 and concerns over Malaysia’s rising external debt Institutional investors are fleeing the Ringgit due to low Malaysian central bank reserves and fears of capital control being implemented like in 1998 during the Asian Financial Crisis The recent sharp decline of the Malaysian Ringgit (MYR)...

Read More

Economists Lower Singapore Growth and Inflation Projections for 2015: MAS Survey

SINGAPORE: Private-sector economists are less sanguine about the growth outlook for Singapore’s economy this year, and have moderated their expectations for several sectors, a quarterly survey released by the Monetary Authority of Singapore on Wednesday shows. The economists polled in the survey say they expect the economy to grow 2.2% this year, down from their median forecast of 2.7% in the previous survey in June. The economy grew 1.85 in 2Q 2015. The manufacturing sector is expected to see a contraction of 2.7% this year, down from the 0.5% forecast in the previous survey. The finance and insurance industry is expected...

Read More

5 Money Myths That Will Leave You Broke

Not everything we learned in school about money is right. Well, maybe it was true with regard to our allowances, but things are a lot more complex in real life. Here are some money myths you’ll be financially healthier without: Myth #1: Pay Off Your Home Loan as Soon as Possible This is one of the most dangerous and yet common pieces of financial advice around. It is often made by people who don’t understand home loans or who have very limited experience with long-term financial planning. Why is this a bad idea? Consider this: Say you have saved...

Read More

The Battle of the Telcos: 5 Things You Need to Know about M1

Following up on the “Battle of the Telcos” series and my previous Singtel analysis, this week, I’ll be covering M1 and five important things you need to know about the company. But before we dive into that, here’s a background on M1’s business model. The Business M1 has three major shareholders: Axiata Investment (28.42%), Keppel Telecommunication & Transportation (19.15%), and Singapore Press Holding (13.32%). M1’s revenue generation is derived from four business segments which are mobile telecommunication services, international call services, fixed services, and handset sales. Mobile Telecommunication Services The major contributor is mobile telecommunication services which accounts 62% of...

Read More

4 Reasons Why the STI Collapsed 18.6% and Broke Below 3,000 Points

The Straits Times Index (STI) broke below the psychologically important level of 3,000 when it opened at 2,971 points on 21 August 2015. The index fell further and closed at 2,843 points the next trading day – an 18.9% drop from its peak of 3,531 points in April. The STI has since rebounded slightly to 2,945 points but the big question on everyone’s mind is why did the STI drop so drastically?   Chart: Yahoo Finance Let’s explore what happened and look at how market optimism was built up in the first quarter, then how economic doubts surfaced in the...

Read More

3 Ways to Maximize Your Investment Returns During Market Crash

On 24 Aug 2015, China experienced its “Black Monday” – in reference to the infamous 1987 global market crash. The Shanghai Composite fell 8.5% in one single day spreading panic around markets worldwide. Japan’s Nikkei and Hong Kong’s Hang Seng fell 5.9% and 5.2% respectively. The sell-off continued when the European markets opened. The UK (-4.7%), Germany (-4.7%), France (-5.3%) and Italy (-6%) all saw their markets drop markedly. Finally, the Dow Jones Industrial fell 3.94% — its worst day in four years. The U.S. and regional markets stabilized yesterday (25 Aug 2015) but the sell-off continued in China with...

Read More

The Fifth Person is Now on NewsLoop!

The Fifth Person is now on NewsLoop! NewsLoop is Singtel’s e-reader that puts together the best news and lifestyle content from Singapore, Malaysia, Indonesia, Australia, Philippines and Thailand, all into a single elegant app. We’re proud to say that The Fifth Person is now featured alongside renowned publications like Channel NewsAsia, The New York Times, BBC, Reuters, Bloomberg and more! With over 600 publishers and 30 categories like Top Stories, Business & Finance, Tech & Gadgets, Health, Sports and more to choose from, you can personalize NewsLoop to deliver news that matters most to you. Check out The Fifth Person in the...

Read More

How Will BreadTalk’s “Soya Bean Milk Saga” Affect the Company’s Profit?

At 10 o’clock on a Monday morning, I wanted to grab a bun from BreadTalk at Somerset 313 for a quick breakfast. After looking through the buns on the display, I had a hard time deciding on what to eat. Not because I was indecisive but there weren’t any tags to label and describe the different buns. I gave my feedback to a staff member but she did nothing except to continue wiping the trays. I ended up getting a cheese hot dog bun (easier to identify), paid for it, and left the outlet. As a customer, frankly, I...

Read More

5 Ways to Make Money With Your Hobbies

Besides finding ways to lower your expenses so you have more money to save for investing, the other side of the coin is find ways to increase your income. The more income you can earn, the more you can set aside for investments to grow your wealth. And what better way to earn extra income than to make money with the things you already love to do: hobbies! Hobbies grow alongside our wealth. And by that, I mean they get more expensive! But while many of us think of such lifestyle choices as being purely a cost, it doesn’t...

Read More

Investment Legend: David Einhorn

Photo: ValueWalk US investment legend David Einhorn started his own hedge fund with $900,000 and grew it to $10 billion over 20 years. Over this period, he accumulated around $2 billion of net worth. He made his name by uncovering the accounting irregularities in Allied Capital and Lehman Brothers. With Allied Capital, he had to endure six years of investigations before his name was cleared and proven right. For Lehman Brothers, it cemented his reputation as a leading hedge fund manager. David Einhorn has a unique blend of investment styles which combines intensive due diligence, macroeconomic awareness and portfolio...

Read More

8 Things I Learned from Mapletree Logistics Trust’s AGM 2015

Photo: Mapletree Logistics Singapore has a high level of corporate transparency and one minority shareholder pointed out during the AGM that Mapletree Logistics should disclose the remuneration of key managers to promote better overall standards of corporate governance. Chairman Paul Ma, however, rejected his suggestion and said disclosing the remunerations of individual employees do not affect the fees charged to the REIT anyway. Simply put, the remunerations have nothing to do with the REIT. When the shareholder continued to press his point, Ma boldly replied: “There is a difference between transparency and nosiness.” Loud laugher was heard after the...

Read More

Dividend Machines All-Access Workshop – 15 Aug 2015

Do you want to receive stable, passive income from your investments year after year like clockwork? Then discover the *8* steps to create your own ‘Dividend Machines’ and build multiple streams of passive income from dividend stocks and REITs. Build your own dividend machines now Are you looking for a formula that can consistently pick out the best companies to invest in and make you a LOT of money in the stock market? If you are, then this might finally be the answer you’ve been looking for. Because this is the same exact formula we used to create 7-figure...

Read More

How China’s Drastic Yuan Devaluation Affects You in Singapore

China’s sudden devaluation of the yuan caught our attention but the fate of the Singapore dollar is still in the hands of the MAS. The MAS has the tools to strengthen our dollar against the major currencies if it wants to. Singapore’s economy shrank by 4% in Q2/2015 due to the SGD’s strength against most of our major export markets which is led by China, Malaysia, Hong Kong, Indonesia, Europe and US. In two days of devaluation, the People’s Bank of China wiped out the Singapore dollar’s relative weakness against the yuan that the MAS engineered for Q3/2015. However...

Read More

Why the Trans-Pacific Partnership Will Transform Singapore’s Future Economy

Singapore owes its current success due to its embrace of free trade right from the island’s founding in 1819. The free trade agreement with the U.S. in 2003 was an important modern achievement and precursor for the Trans-Pacific Partnership. The Trans-Pacific Partnership would be the largest trade pact in modern times with 12 nations involved and covers 1/3 of world trade. President Obama recently obtained fast-track authority from the Senate to push through TPP negotiations despite labour union objections. While details are not clear, we are likely to see its successful completion by January 2017 as Obama seeks to...

Read More

Why Noble’s $131 Million Share Buyback Remains Unconvincing

A share buyback (or share repurchase) happens when a company uses its own cash to buy back its own shares. Buying back shares increases earnings per share (EPS). This means share prices theoretically should increase and benefit shareholders. But the question is… does it truly benefit shareholders? Warren Buffet preaches share buybacks as a tax efficient way of returning capital back to shareholders, therefore his favourite companies often buy back shares in large amounts. However, one must note that his investments are predominantly in the U.S. In the U.S, dividends are taxable, hence companies issuing dividends are double taxed,...

Read More

Like us on Facebook

Follow us on Twitter