Why I don't feel proud to be Singaporean?

It is unfortunate but sometimes very smart people can become quite dumb in certain instances. 

Unfortunate but true.

Then again, we have to ask if it is a matter of fact or a matter of opinion. 

If it is the latter, then, maybe the smart person is not dumb. 

Maybe, he or she is just different.





Recently, there has been a lot of talk about a certain Miss Stephanie Koh who declared that she is not proud to be a Singaporean. 

She was eloquent in her complaint and according to a friend, Patrick, it seems that she just hates Singaporeans.

I am sharing Patrick's observation here in my blog:

What irks me is that people are interpreting it as some kind of political message. 

There is no political meaning. 

There is no pro or anti message.

She just dislikes Singaporeans. Period. 

What's there to support if all there is is hate?






Her points summarized by
https://www.facebook.com/notes/robin-rheaume/stephanie-koh-why-i-am-not-proud-to-be-singaporean/10151936357538920

It's no place for an artist (2:02)
Singaporeans are narrow minded (3:19)
Singaporeans are not creative (4:05)
Singaporeans are submissive (6:58)
Singaporeans are not happy (7:24)
Singaporeans are not nice (9:00)
Everyone just follows the rules (11:56)





Yikes! 

Sounds like a young lady full of angst and on a war path.

My take? 

Why doesn't she do anything about the situation. 

Don't just complain. 

Or is she complaining and waiting for someone to do something (which, by the way, sounds very Singaporean to me)?

Then, we have people who agree with her either in part or in whole. 

To people who don't agree with her, these people who do would appear stupid, of course.





When topics become very socially divisive and there are so many examples in the world of these, I can safely say that they are really a matter of opinion and not facts.

So, one could say that Miss Stephanie Koh is opinionated but who could say for sure whether she is right or wrong? 

Happy can liao lor. 

Oops, I forgot, she is not.

Maybe she should watch this: 

Be Happy!





AK is opinionated? 

So? 

You don't make me angry, ok? 

"I'll attack you, I'll scratch you and I'll kill you!"

Read this news article?
K-pop star hunt finalist: Why I don't feel proud to be Singaporean?

Buying a car? Chances are it will be European.

Click to enlarge.
Source: LTA.

I still remember a time when Toyota was consistently the number one brand in Singapore in terms of sales figures. Imagine it is number three now! It is also the sole Japanese make in the top 5 sellers in Singapore.

Is there really so much wealth in Singapore?

Or is most of it an illusion?

Mind boggling.

See full list at LTA: here.

Related post:
Car dealers unhappy with LTA.

Buy a property below valuation AND replacement cost!

Someone asked me why I don't consider buying new built Japanese apartments for investment since I feel that a reflation is underway in the country.

Why Saizen REIT?

The value of the residential properties owned by Saizen REIT is below their replacement cost.

Buying at a discount to valuation is great but buying at below replacement cost is even better! When I invest in Saizen REIT now, I am buying at a discount to valuation buildings which are valued below replacement cost! How crazy is that?

Want to compete with Saizen REIT and other incumbents by building new similar apartment blocks? Must be bonkers to do so.

So, supply is not growing and demand seems like it could grow with Abenomics gaining traction. Things could look better in the next few years for Saizen REIT.

Related post:
Saizen REIT: Insiders are accumulating.

Ad hoc Annual Report for ASSI.

A potential advertiser asked me for some blog stats and I got this from Stat Counter today:

Click to enlarge.

The green bar for 2013 is so tall that a couple of numbers could not make it into the chart.

I left out year 2009 which was the year I started my blog since it didn't have numbers for a full year.

If I was not asked for this, I would not have gone to Stat Counter to check the numbers.

I thought since I have the numbers, I might as well publish them and share with my readers. You guys are the other half of ASSI. You make the numbers.

Thank you.

Singapore is going to suffer an economic meltdown!

I saw at least half a dozen people posting THE article in Forbes on their Facebook walls and one reader was concerned enough to send the HTML link for the article to me. 

Which article am I talking about?





This: 
Why Singapore's Economy Is Heading For An Iceland-Style Meltdown.

Sensational headlines like this are bound to capture the attention and, perhaps, also the imagination of people.

According to the article, Singapore has a wealth bubble, a population bubble, a credit bubble, a property bubble, a construction bubble and our sovereign wealth funds are at risk. 

Put all these together and we have an epic horror movie that will put "Nightmare on Elm Street" to shame!





AK decided to try his hands at a sensational headline. 

Let's see. What about this?

AKAN DATANG:
"The Killer Bubbles of Singapore!"

Maybe, this will get the attention of the Monetary Authority of Singapore (MAS) too! Too? 

Yup, The MAS has issued a response to the article in Forbes.

This: Singapore is not facing a credit bubble.

First, the property market is now stabilising and new housing loans have also been declining.

Second, household balance sheets are on the whole strong and property asset values are significantly higher than the debts incurred.

Lastly, the MAS said Singapore's financial system is robust.






Read both articles and form you own conclusion. Is Singapore going to melt like Ice, I mean, Iceland? 

Or should the Forbes article be moved from the non-fiction to the fiction section of the bookshop?

Although I am a worrier by nature, I think this is something I will have to pass on worrying. 

The issues are way too big and what good is it going to do if I worry about them?





What is more important for us to do is to work with what we have and to ensure we are prepared. 

Up or down, we want to be OK and we should be OK if we do the right things.

Related posts:
1. How to be truly rich when the world collapses?
2. The secret to avoiding financial ruin.
3. Don't think and grow rich.
4. Be cautious even as we accept higher risk.
5. Young working Singaporeans, you are OK!
6. Millionaires emerge from bear markets richer.

Car dealers unhappy with Land Transport Authority.

I read a commentary in The Business Times yesterday and found it amusing for various reasons.

It was a piece on how car dealers are unhappy with the Land Transport Authority (LTA) for what have been perceived as piecemeal announcements.

Honestly, I think they are more unhappy with the fact that the business environment has become very difficult for them, forcing many smaller dealerships to close in recent times.

For those of us who drive, we know that road traffic conditions have worsened remarkably and this is partially due to a motor vehicle population that has burgeoned in recent years.

More people also "seemed" to be "prosperous" as their demand for cars pushed Certificate of Entitlement (COE) prices through the roof just a few months ago.

The operative word here is "seemed" and not "prosperous". Why?

When "cooling measures" were introduced last year, demand fell dramatically. It shows quite obviously that many people were only able to afford cars here in Singapore when they had access to much bigger loans and 100% LTV (loan to value) was also available.

One complaint a car dealer had was about the categorising of cars not just by engine capacity but also by engine output. This caused brands like BMW to be completely pushed out of Category A which is where mass market cars compete for COEs.

Is this a bad thing?

Well, bad for the rich or those who want to appear rich. For most of us average folks, I think it is a good thing. Actually, for the rich, it might not even have mattered.

Imagine a middle income family buying a 1.5 litre Japanese make mass market car competing for a COE with a millionaire who was buying an entry level BMW for his son's 18th birthday. Something feels wrong here. What is it? I wonder.

So, the categorisation criteria are better now. I am not saying that the system is now perfect, of course, but I feel that it is better. More equitable, won't you agree?

Related posts:
1. First time car buyer? Get a Mercedes Benz.
2. Cooling measures for cars: Buying pre-owned.
3. Cooling measures for cars spurned.
4. Cooling measures for cars.
5. If we are not rich, don't act rich.

Marco Polo Marine, Mermaid Maritime and Jaya Holdings.

Someone asked me recently why didn't I buy into Mermaid Maritime or Jaya Holdings which are in the same industry as Marco Polo Marine?

He suggested that I look stupid now that Marco Polo Marine's share price is still languishing while those of Mermaid Maritime and Jaya Holdings' have shot through the roof.

Well, like I always say, I don't have a working crystal ball, only a working bowling ball and I am not even a very good bowler. Sometimes, my bowling ball ends up in the gutter. OK, ok, frequently, my bowling ball ends up in the gutter. So embarrassing.

Anyway, if you had bought shares of Mermaid Maritime or Jaya Holdings' and made a bundle, congratulations. Celebrate! Always good to make money.

I have said that fundamentals look strong for the offshore and marine industry, supporting buoyant demand in the oil and gas industry. Prospects look good for the next couple of years at least.

I haven't studied Mermaid Maritime or Jaya Holdings in detail but with Mermaid Maritime now trading at about 23x earnings and Jaya Holding's stock price at a 5 year high, Mr. Market has to be very optimistic indeed.

For example, he must be expecting the earnings of the former to at least double in the next 12 months in order for a 23x PER to be reasonable now. Is this possible? I suppose anything is possible. What is the probability? Anyone?

There could be explosive growth in business in the future for both Mermaid Maritime and Jaya Holdings but I cannot tell if it is going to happen. So, I rather prefer to buy cheaply.

If I am able to buy a company's stock at a PER of 8x in the same industry which has earnings growth visibility over the next 18 to 24 months, isn't that a better deal? Well, I think so.

Now, which stock could this be?

Let me ask my bowling ball.

Related posts:
1. Marco Polo Marine: Exciting times ahead.
2. When to BUY, HOLD or SELL?

OUE C-REIT.

OUE Limited is spinning off OUE Bayfront in Singapore and Lippo Plaza in Shanghai into a REIT. Seems like OUE Limited is actively recycling capital and trying to catch whatever remaining interest investors might have in a REIT IPO. Just barely half a year ago, they listed OUE Hospitality Trust and I blogged about that here.

OUE C-REIT is the name of the latest offer. It will be priced at 80c a unit and will offer a distribution yield of 6.8% or a DPU of about 5.44c.

I believe that this IPO is a plus for OUE Limited shareholders just like the listing of SPH REIT was good for SPH shareholders. However, I don't think OUE C-REIT is attractive as an investment for the same reason that I thought SPH REIT was not attractive compared to SPH as an investment. You might be interested in that blog post. Read it: here.

I like the fact that OUE Limited has given a commitment to support the REIT by offering assets at a discount to valuation in future. This is something that the Lippo Group has done for LMIR and First REIT as well. After all, it is the same family that is in control of OUE Limited. Yes, OUE Limited is a 55% owned subsidiary of the Lippo Group.

I also like the fact that OUE Limited will retain a 45 to 50% stake in OUE C-REIT which will see their interests more aligned with those of minority unit holders in the REIT since any action taken which might hurt minority unit holders will hurt the sponsor, OUE Limited, most.

Having said this, we have to remember that the sponsor would have reaped most of the benefits from the IPO and the higher distribution yield is a result of income support given by the sponsor. If there were no such support, the distribution yield is actually 5.56%, almost 20% lower.

Over the next couple of years, if the REIT manager is able to fill up all the vacant space in the two initial properties and achieve positive rental reversions in re-leasing, the REIT could deliver a yield of 6.8% without any support.

However, with interest rates set to increase, we could see a heavier debt burden come 2017 when most of the REIT's debt mature. This could wipe out any hope of maintaining the relatively attractive distribution yield now unless unit price of the REIT declined.

The REIT could grow DPU through accretive purchases from its sponsor, of course, but with gearing ratio relatively high at 41% or so now, it would probably have to resort to equity fund raising either in the form of a rights issue or private placements. Unit holders should be prepared for this.

All investments are good at the right price and to invest in OUE C-REIT for income, I would only be interested if it should offer a much higher distribution yield, given the considerations above.

Related posts:
1. A strategy to grow wealth and augment income.
2. 2013 full year income from S-REITs.