Happily I go to Malaysia change my S$1 to $2.52+ ringgit every few weeks to spend… however, some Singaporean ya-ya-papaya think that strong S$ means Singapore economy more powerful or gaining strength on Malaysia and so on. This is the view of IGNORANT people.
1. Why did MAS allow Sing$ to go up so much despite negative GDP growth last quarter?
There is very high inflation in Singapore and raising the S$ makes the imported component of the CPI lower thus lowering the overall inflation figure to 5.3% which is already quite bad. Imagine at 6% our inflation will be higher than 3-month Spanish bonds!!!
This is a sign the Singapore govt is losing control of domestic price inflation and using the S$ to make imports cheap to hide inflation pressures.
2. Our export sector is hurting and property bubble is prop up to keep us out of recession?
Why you think MAS allow 50 year home loan. If property sector shrinks immediately, Singapore will be in recession because export sector is weak. The govt is just playing the number to prevent a recession by artificially propping up property sector.
3. As for some people think S$ strong almighty against the ringgit means Singapore BETTER
Actually Malaysian inflation rate is 1.7% vs 5% in Singapore. Malaysian economic growth is 5% vs negative for Singapore last quarter.
The way Singaporeans can gain from this is stronger Sing$ is to go to Malaysia to spend their money. But you cannot spend every S$1 in Malaysia no matter what. Most of your money has to be spent in Singapore unless you MOVE TO MALAYSIA. That means you’re exposed to high inflation while Malaysians are not, despite their weaker ringgit. The weaker ringgit means Malaysian exports are stronger.
4. Strong S$ despite strong outward remittance flow = high dependency on capital inflows of hot money, tax evaders and money launderers
Half the workforce is foreign. They feed their families back home in Philippines, India and China. This means there is high remittance flow as these workers convert their salary to foreign currencies putting downward pressure on S$. Our trade deficit is very large.
To balance our accounts we depend on rich people from India, China, USA to shift money here to avoid tax in their home countries. Some of the money (like Ma Chi’s) is of unclear origin. This means Singapore is forced to keep taxes on wealth artificially low even as income gap balloons. If billionaires stop parking their money here, the merry-go-round stops and things can sink FAST.
Singapore economy is propped up artificially. It is not healthy. We have no Samsung, Acer or HTC. We are flushing the economy with all sorts of money avoiding taxes, running from their own govt. This means we try to ‘makan’ the highly corrupt western banking pie as western banks fail – this is likely done by deregulation and allowing more shadow activities in Singapore. If Obama wins again, he is likely to shut down this type of parasitic business growing like cancer and breeding the most foul type of financial businesses and humans.
Ok… next week I happily go spend my S$ in Malaysia… but I not so ‘gong kia’ to think it is because things are so steady ‘poon pi pi’ in Singapore.
“Casino operators regret the growing power of ‘junket’ operators in mainland China that account for most of the Macau casinos’ earnings,” one U.S. consulate official reported in a 2008 Wikileaks cable obtained by Reuters through a third party. “They believe the operators are directly or indirectly involved with organized crime in Macau and the mainland,” it said. Do we have the same problems in Singapore? Definitely but everyone is closing an eye. I see tracks of evidence of human trafficking, loan sharks, money laundering, prostitution and all kinds of illegal activities making their inroads into Malaysia and Singapore from HK and mainland china. If there is no secret Swiss Bank accounts, everyone will get a shock how far the money trail will point to.
More than 47 years of abuse and milking the cow until it has no milk, this credit should go to LKY(666) and not his son LSL until things get so complicated, do not follow the footsteps of your father, where the love of money is the root of all evil, that we need to mass import FTs, build two casinoes that caused Singaporeans to live a life of sin and invite thieves and robbers to hide their shadow activities. We do not need PAP’s solutions, they are really betrayers, I am capable of ensuring we can build a future even without resources for our children and retirement. Come GE2016 Singapore will have a coalition government to rebuild from scratch what is lost, to ensure a bright future for Singaporeans again.
– Contributed by Oogle.