Friday, 21 January 2022

Are You Financially Literate On Our SingDollar?


Jamus Lim to MAS: Let Singdollar strengthen to boost our purchasing power.

The average Singaporeans riding the ComfortDelgro bus probably have no interest in our Singdollar exchange rate.

You too, if you are a Singapore koala bear or panda - only invests in Singapore properties or Singapore stocks exclusively.

When you should.

Would overseas investors come park their money in Singapore stocks and properties if they think our Singdollar will slowly weaken and weaken over the next 10 years?

Would you invest in Malaysia properties if you think the MYR will likely reach 4 to 1 in the next 10-20 years?

That meant your Malaysian property has to appreciate by more than 33% just to breakeven what you have lost in currency conversion....

The good news is that youths are probably more savvy than old fogey koala bears and pandas in our community - when it comes to Singdollar exchange rates.

Especially when they are already vested with US options, stocks and cryptos. The same goes if they held passive ETFs with LSE or Hang Seng listed China tech stocks.

Even for those youths not in our financial freedom community, they are fully aware and know how to take advantage of our Singdollar strengths and weaknesses - especially when they like to buy stuffs online from overseas!

Before this Wuhan virus thingy, whenever a country's exchange rate has "bombed" against our Singdollar, you'll see a spike in holiday travels to that country! 

You think why so many visited Korea with the recent opening up?

The thing about Singdollar exchange rate is that its a bit like our property prices.

If we are not vested and looking to buy a property in Singapore, we'll support big daddy's property cooling measures. Who doesn't like lower prices?

But if we already vested and looking to sell our properties, we'll probably send our "regards" to big daddy for capping our profit taking...

Similarly, if you are looking to take profit from your overseas investments, and bring the funds back to Singapore, you'll hope our Singdollar will weaken... The lower the better!

But if we are looking to diversify and invest overseas for the first time, we'll sing another tune... Let our Singdollar strengthen leh!

Its fun when overseas investing is like going to JB; everything is so much cheaper than in Singapore!

Until you got burnt.

Then you'll become born-again koala bear or panda. 



  1. Smol,

    Cannot!! Like that how to give more money to GIC to invest?!?


    When I was working/studying in UK over 20 yrs ago, the exchange rate was $2.50+ to a sterling... for the first few months, I sure didn't mind moonlighting as a kitchen help in a student hostel dishing out meals at 8 pounds/hour. Wifey got stints as sales clerk & admin for £12-£15 an hour, boy I was jealous!

    Regarding inflation, govt's solution will be exhorting people to work longer & to upgrade / reskill.

    Salaries & increments will be quite strong over the next couple of years. ;)

    Horror for retirees & those too lazy to work (like me!). :(

    1. Spur,

      That's the monetary difference between "muscle work" versus "the more we talk, the more we earn"!

      Do less; spin more?


      Yes, those who have reached their 1M65 goals through Save More may be in for some rude shock if they intend to live till 95...

      Its not hard to imagine what retirement on FIXDED income would be like - just pretend for the past 30 years, we did not have a single pay raise all these years!!!

      You and I, and for those who FIRE before 65, we got a head start ;)

      Just as long we don't bankrupt ourselves along the way!

      P.S. That's why I still buy Toto. I'm missing a 2nd rental property ;)


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