Author: The Fifth Person

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...

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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...

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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,...

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Happy #SG50!

Happy 50th Birthday, Singapore! Today we celebrate our home’s golden jubilee and fifty years of nationhood. To all Singaporeans and everyone who contributed to building this beautiful country, thank you so so much! 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...

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9 Simple Tips to Lower the Cost of Living in Singapore

Earlier this year, Singapore was ranked the world’s most expensive city for the second year running by the Economist Intelligence Unit. Transport, groceries, and even shopping cost more than they would in New York. But it’s not impossible to live here, especially if you’re armed with tips and tricks on how to maximise the value of each buck. #1 Take Free Morning Train Rides to Town For early-risers, take advantage of the SMRT’s Travel Early, Travel Free programme that has been extended to 30 June 2016. You get to take train rides to the city for absolutely nothing if...

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938LIVE – How Will Rising Interest Rates & Falling Rents Affect Your REIT Investments?

With the impending interest rate hike, falling rents, and new REIT regulations taking place in 2016, how will your REIT portfolio be affected? Join Rusmin Ang from The Fifth Person on 938LIVE as he talks about how you can safeguard your investments in this period of uncertainty. Rusmin Ang is an equity investor and co-founder of The Fifth Person. His investment articles have been published on The Business Times BTInvest section and Business Insider. He has also been featured multiple times on national radio on 938LIVE for his views and opinions on how to invest successfully in the stock...

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Why Singapore Should Look Towards ASEAN Rather Than China for Growth

The ASEAN Economic Community (AEC) is scheduled to be fully implemented by the end of this year. Singapore would serve as the regional financial centre for companies to rise funds and lower-cost countries like Vietnam can serve as a production centre. This will benefit our banking and shipping sectors as the supply chain shifts to ASEAN. As skilled professionals move to Singapore for work and leisure, the local hospitality sector will benefit likewise. The AEC is more practical and less ideological than the EU. It is more likely to succeed without a common currency and free movement of labour....

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10 Quick Things I Learned from Singtel’s AGM 2015

The talk of the town in recent months in the telco industry is the impending entrance of a fourth telecommunications company in Singapore and the online backlash surrounding Singtel CEO’s, Chua Sock Koong, high remuneration. Ms Chua took home a salary of S$1.68 million and a variable bonus of S$3.83 million for the year. These two questions were immediately brought up by one shareholder during Singtel’s AGM: “There is a news coming out that a fourth operator is coming in. How does that affect Singtel and why is the CEO’s variable remuneration more than the fixed remuneration. Can the...

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The One Ratio to Use When Valuing an Insurance Stock

You see friends, family and perhaps yourself worrying about health, property, or cars. What do they rely on to eliminate those worries? Insurance. If you’re reading this, you are probably covered by some sort of insurance. Houses and cars in Singapore are the only two entities wherein insurance is a necessity. It’s a business that has existed for thousands of years and will continue to do so for a very long time. Those well-read on Warren Buffett’s investments and his strategies know all too well that Berkshire Hathaway’s insurance companies are one of the main engines of growth that...

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STI Falls 5.07% from 52-Week High on Weak Q2 GDP Growth

Photo: TODAYonline The Ministry of Trade and Industry reported that Singapore’s Q2/2015 GDP estimate shrunk by 4.6%. Manufacturing growth fell 14% and this was due to transitory factors in the US and also structural challenges in manufacturing. Structural challenges include the effect of continued low oil prices with the historic lifting of the Iranian oil sanction and the onshoring phenomenon which affects the Asian supply chain. The impact can be seen on the STI which has fallen 5.07% from its 52-week high despite the resolution of the Greece bailout and the China stock market recovery. Economic data are always...

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The Joys and Pitfalls of Owning a Credit Card in Singapore

If you don’t have a credit card, you probably feel smug when you hear about another bankrupt on the news. You’re financially prudent! It would never happen to you because you don’t use plastic! Well you’d better take a seat, because most of your assumptions are wrong. In fact, you’re probably wasting more money by not using credit as a mode of payment: The Joys of Credit Cards Why own a credit card? The main reason is not to be able to borrow money. In fact, relatively few people with credit cards are frequent revolvers (people who consistently fail...

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5 Reasons Why You Should Invest in Dividend Stocks

Here at The Fifth Person, we’re big on dividends – it’s a great way for many, many people to generate stable, passive income that will grow in time and allow them to retire financially free. Granted, it’s not the only way to invest and we also employ other investment strategies (like value-growth investing) in our portfolio as well, but if what you’re seeking is a proven way to generate stable investment returns and high amounts of passive income, then dividend investing is the way to go. If you’re still not convinced and you think dividend investing is too slow,...

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The Battle of the Telcos: 6 Things You Need to Know about Singtel

The stock prices of Singtel, StarHub, and M1 have fallen since the announcement of a fourth telco to be introduced into Singapore to spur competition. One of the possible candidates, MyRepublic, plans to provide unlimited data packages for their mobile services which may be a competitive threat to the incumbent telcos as their data plans are based on fixed data usage. Since the introduction of a fourth telco is inevitable, instead of worrying of the new entrant I decided to look in-depth in the existing three telcos and find out which one is in the best position to battle against...

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Dividend Machines All-Access Workshop – 19 July 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...

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Dividend Machines All-Access Workshop – 18 July 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...

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