Search

NEWS
ECONOMY | Staff Reporter, Singapore
Published: 30 Nov 12
7506 views


These economic problems will nag Singapore in 2013

Not a very pretty picture.

According to CIMB, Singapore faces domestic challenges that are different from the west.

Here's more from CIMB:

It is not about the need for austerity, nor the process of deleveraging.

It is about inflation and cost pressures. Local liquidity is abundant. Negative domestic real rates have caused bubbly property prices; they are not the sole culprit.

The bees of global liquidity have zeroed-in on assets in Singapore’s honey pot, amid: 1) never-ending QEs in the developed world; 2) an ever-strengthening S$; and 3) its gold-plated AAA-sovereign rating.

Compounding its asset-inflationary pressures are spiralling labour costs from its current restructuring initiatives.

Unemployment rates remain low and efforts to wean the country off its dependence on cheap foreign labour are causing obvious pain. Labour constraints will likely hurt corporate earnings now and hurt GDP growth further ahead via less foreign direct investments.

What are 2013’s big risks? Our recommendation to step out of the comfort zone is clearly at risk if Europe falls apart or if rising protectionism, nationalism and uncontrollable social unrest is triggered as a backlash to austerity.

If these do not materialise, the more likely outcome in 1H13 is weak global growth (possibly, a technical recession in Singapore), more money-printing in the western world and an eventual threat of inflation or rather, stagflation.

In such an environment, NAV plays should serve investors well. Companies will have to manage rising business costs and earnings risks are still on the downside.

Sold-down cyclicals might start to perform as liquidity overflow and earnings disappointments taper off. Lastly, no one is expecting interest rates to rise but if they somehow do, the over-owned REIT sector stands at risk.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: Singapore problems, Singapore inflation, Singapore unemployment

CO-WRITTEN ARTICLES & SPONSOR CONTENT ››

Find out what makes Uzbekistan an ideal country for foreign investments.
13 views

Find out more about the newly enhanced AIA Retirement Saver (II) launched by AIA Singapore.
12 views

An EASB education is the perfect fit for postgrad-seeking professionals.
20 views

Here’s why this firm is making big waves in Singapore’s crowded financial landscape.
29 views

Instaforex offers clients a real informative hub containing a great deal of information such as news updates, surveys, and exclusive analytical reviews.
7 views

Offering flexibility, innovation, and utmost quality, Kaplan postgraduate education satisfies the professional’s every need.
36 views

Millennium Hotels and Resorts balances acquisitions and managing franchises.
31 views

With a unique tri-city model in Singapore, Dubai and Sydney, the school is reinventing business education to craft business leaders of the 21st century.
33 views

LATEST ECONOMY JOBS »
  • No jobs posted on this category.
PRINT ISSUE »

Subscribe Now
Survival of the fittest in Singapore’s franchising scene

38 views

Singapore’s IPO market falters as Hong Kong’s soars

18 views

Singapore’s “mid-life crisis”

91 views

MOST READ EXCLUSIVES

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

It boasts an automated sun-shading system.

by MARIANNE ESTIOCO
7 Jul 2015 | 15041 views
 

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

This small start-up has global dreams.

by MARIANNE ESTIOCO
8 Jul 2015 | 9768 views

Cocoa Colony to open 12 more outlets in Singapore by end-2015

Cocoa Colony to open 12 more outlets in Singapore by end-2015

The cafe chain seeks to target the masses.

by KRISANA GALLEZO-ESTAURA
21 Jul 2015 | 9007 views
 

10 smart ways to spend your GST Vouchers

10 smart ways to spend your GST Vouchers

Regardless of how much you spend, aim to spend it well.

by KRISANA GALLEZO-ESTAURA
8 Jul 2015 | 8652 views

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

Walls and windows function as a big canvas.

by MARIANNE ESTIOCO
15 Jul 2015 | 4846 views
 

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Meeting rooms are named after Asian tourist spots.

by MARIANNE ESTIOCO
5 Jun 2015 | 3999 views

Hootsuite boosts its APAC team opening a new office in Singapore

Hootsuite boosts its APAC team opening a new office in Singapore

Its VP talks about the importance of the company’s culture in line with opening the new space.

by LEE ANNE BABIERRA
18 Jun 2015 | 3391 views
 

Experience a different form of Thai casual dining at Gin Khao

Experience a different form of Thai casual dining at Gin Khao

The man behind the Jus Delish Group opens its flagship outlet at East Coast Parkway.

by STAFF REPORTER
19 Aug 2015 | 2777 views

Singapore’s first dedicated F&B development to open in East Coast Road

Singapore’s first dedicated F&B development to open in East Coast Road

Katong Square plans to open at the end of the year.

by STAFF REPORTER
31 Jul 2015 | 2685 views
 

CtrlShift’s new office exudes a ‘wow-effect’ without being too grand

CtrlShift’s new office exudes a ‘wow-effect’ without being too grand

Paying attention to small details paid off.

by LEE ANNE BABIERRA
29 Jul 2015 | 2319 views

Former college dropout built his own company and made $2million in just 2 years

Former college dropout built his own company and made $2million in just 2 years

He developed a hiring software for jobless women and youth.

by KRISANA GALLEZO-ESTAURA
20 Aug 2015 | 2093 views
 

Grant Thornton aims to grow staff to 200-300 people in Singapore

Grant Thornton aims to grow staff to 200-300 people in Singapore

Here’s what it will do differently compared to the Big Four.

by KRISANA GALLEZO-ESTAURA
29 Jul 2015 | 1679 views

This handy app lets you book nearly any service under the sun

This handy app lets you book nearly any service under the sun

Find technicians, babysitters and more with Page Advisor.

by MARIANNE ESTIOCO
8 Jun 2015 | 1633 views
 

The wait is over: American Eagle Outfitters opens flagship store in VivoCity

The wait is over: American Eagle Outfitters opens flagship store in VivoCity

Shop until you drop with its wide selection of denim washed jeans.

by STAFF REPORTER
19 Aug 2015 | 1597 views

Could this site be your new financial buddy?

Could this site be your new financial buddy?

It allows users to look for financial services based on their pre-calculated profile.

by LEE ANNE BABIERRA
30 Jul 2015 | 1535 views
 

PwC Singapore launches its first Investment Fund Centre in Asia

PwC Singapore launches its first Investment Fund Centre in Asia

Expanding its presence in the asset management sector across Asian region.

by LEE ANNE BABIERRA
29 Jun 2015 | 1391 views

How do you like getting cash rebates when shopping online?

How do you like getting cash rebates when shopping online?

ShopBack introduces this concept in Southeast Asia.

by STAFF REPORTER
21 Jul 2015 | 1378 views
 

Hey, boss: This startup wants to be your all-around sidekick

Hey, boss: This startup wants to be your all-around sidekick

Alpha7 wants SMEs to join the Cloud.

by STAFF REPORTER
16 Jun 2015 | 1367 views

Out with the old, in with the new: Arcc Offices refurbished its first serviced office in Singapore

Out with the old, in with the new: Arcc Offices refurbished its first serviced office in Singapore

It is designed with break out spaces that are ideal for a collaborative working environment.

by LEE ANNE BABIERRA
17 Aug 2015 | 1305 views
 

Get your head in the game: Testing challenges await the Internet of Things

Get your head in the game: Testing challenges await the Internet of Things

Industry experts share their concerns over security and testing standards.

by LEE ANNE BABIERRA
4 Jun 2015 | 1279 views

WeInvest.net simplifies exploration of available investment opportunities

WeInvest.net simplifies exploration of available investment opportunities

It claims to be the world’s first platform allowing investors to take a peek into the restricted funds.

by LEE ANNE BABIERRA
7 Aug 2015 | 1090 views
 

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Book a reliable cleaner in seconds with Helpling.

by MARIANNE ESTIOCO
22 Jun 2015 | 1089 views

Almac Group boosts APAC foothold, unveils first clinical packaging facility

Almac Group boosts APAC foothold, unveils first clinical packaging facility

It’s the first to complete the Health Sciences Authority inspection.

by LEE ANNE BABIERRA
5 Aug 2015 | 1083 views
 

Why you should never miss premium freebies from Grabz

Why you should never miss premium freebies from Grabz

This app also helps SMEs get noticed in the market.

by KRISANA GALLEZO-ESTAURA
21 Aug 2015 | 752 views

Asian corporates face tough balancing act as sustainability issues mount

Asian corporates face tough balancing act as sustainability issues mount

Discover the changing face of Asian CSR.

by MARIANNE ESTIOCO
1 Jul 2015 | 664 views