Search

Budget 2015: What you need to know right now
BUDGET 2015 COVERAGE
Budget 2015: What you need to know right now

Income taxes will be hiked to shoulder massive investments.
6616 views

NEWS
ECONOMY | Staff Reporter, Singapore
Published: 30 Nov 12
6873 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

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

    Subscribe Now
    What factors are keeping expats rooted in Singapore?

    405 views

    What factors are keeping expats rooted in Singapore?

    448 views

    Can Asian private equity outgrow the west?

    143 views

    MOST READ EXCLUSIVES

    Singapore’s 10 most sought-after 40 and under investors

    Singapore’s 10 most sought-after 40 and under investors

    Check out who made the cut.

    by KRISANA GALLEZO
    19 Dec 2014 | 45444 views
     

    Singapore’s first permanent lifestyle market opens in Bukit Timah

    Singapore’s first permanent lifestyle market opens in Bukit Timah

    Over 20 brands and labels are gathered together under one roof.

    by KRISANA GALLEZO
    5 Jan 2015 | 33012 views

    Singapore’s top 5 work from home jobs

    Singapore’s top 5 work from home jobs

    Here are jobs that you can do while sitting on your couch or in your favorite coffee shop.

    by KRISANA GALLEZO
    11 Dec 2014 | 30704 views
     

    Singapore Business Review’s 2014 Class of 40 and under

    Singapore Business Review’s 2014 Class of 40 and under

    Meet a summa cumlaude graduate who rises from poverty to become JP Morgan’s head of corporate finance.

    by KRISANA GALLEZO
    12 Jan 2015 | 29555 views

    Find out the 10 most expensive districts to rent an HDB flat in Singapore

    Find out the 10 most expensive districts to rent an HDB flat in Singapore

    Glitzy Bukit Timah is off the list.

    by KRISANA GALLEZO
    19 Dec 2014 | 27019 views
     

    Singapore’s hot new restaurants in December

    Singapore’s hot new restaurants in December

    Japanese restos take over Singapore’s sizzling dining scene.

    by KRISANA GALLEZO
    17 Dec 2014 | 9413 views

    This food hub in Seah Street brings a throwback experience to dining

    This food hub in Seah Street brings a throwback experience to dining

    It offers an exciting lunch menu which changes every week.

    by KRISANA GALLEZO
    16 Jan 2015 | 6376 views
     

    Singapore’s first news aggregation app attracts 1 million users in two years

    Singapore’s first news aggregation app attracts 1 million users in two years

    Stay in the loop with news and lifestyle content from SBR and 600 other publishers.

    by KRISANA GALLEZO
    10 Dec 2014 | 3283 views

    This startup created the world’s first bed sensor technology

    This startup created the world’s first bed sensor technology

    No more patients accidentally falling off hospital beds.

    by KRISANA GALLEZO
    14 Jan 2015 | 2719 views
     

    Too many business cards? Why don’t you try Sansan’s business card management service?

    Too many business cards? Why don’t you try Sansan’s business card management service?

    After Singapore, this contract management company plans to expand in the APAC region.

    by KRISANA GALLEZO
    12 Feb 2015 | 2653 views

    Go inside the gorgeous new headquarters of Ingredion in Singapore

    Go inside the gorgeous new headquarters of Ingredion in Singapore

    Its state-of-the-art kitchen space is not to be missed.

    by KRISANA GALLEZO
    18 Dec 2014 | 2582 views
     

    Spencer Ogden gets funky with its newest trademark space in Singapore

    Spencer Ogden gets funky with its newest trademark space in Singapore

    The company invested over $1M to make this signature office possible.

    by KRISANA GALLEZO
    5 Feb 2015 | 2460 views

    What Singaporean investors can expect from Okinawa’s development

    What Singaporean investors can expect from Okinawa’s development

    A 40% tax cut in setting up business is expected to lure investors.

    by KRISANA GALLEZO
    12 Dec 2014 | 2240 views
     

    Meet INSEAD’s new chairman of the board

    Meet INSEAD’s new chairman of the board

    Find out how Andreas Jacobs plans to bring “business as a force for good”.

    by KRISANA GALLEZO
    14 Jan 2015 | 2223 views

    Check out this integrated office cum lab of Friesland Campina in Singapore

    Check out this integrated office cum lab of Friesland Campina in Singapore

    A curved glass wall resulted in a 90% open-plan office.

    by KRISANA GALLEZO
    17 Feb 2015 | 2111 views
     

    Jack Wills opens its first store in Singapore

    Jack Wills opens its first store in Singapore

    A 'fun' brand that values the Brit vibe. Put your game face on!

    by KRISANA GALLEZO
    10 Dec 2014 | 1987 views

    The future of innovation: What’s next after Facebook and Twitter?

    The future of innovation: What’s next after Facebook and Twitter?

    A video version of Twitter might be under way.

    by KRISANA GALLEZO
    11 Dec 2014 | 1791 views
     

    What it’s like going into business with your significant other

    What it’s like going into business with your significant other

    A couple who founded an artisanal food outlet, P.Bistro, shares experience.

    by KRISANA GALLEZO
    9 Jan 2015 | 1750 views

    This could be your best pal when no one’s around to help during an emergency

    This could be your best pal when no one’s around to help during an emergency

    TagBio's ID-Life features accessories with critical info embedded in QR codes.

    by KRISANA GALLEZO
    16 Dec 2014 | 1506 views
     

    PocketMath makes buying mobile ad impressions easier

    PocketMath makes buying mobile ad impressions easier

    It integrates over 20 ad exchanges and offers over 20B impressions a day.

    by KRISANA GALLEZO
    9 Feb 2015 | 1311 views

    SFIC Institute's new training hub overhauls carpenters' career image

    SFIC Institute\'s new training hub overhauls carpenters\' career image

    It’s the first carpentry training center in Singapore’s furniture industry.

    by KRISANA GALLEZO
    10 Dec 2014 | 1300 views
     

    Kungfumath wants to revamp boring e-learning portals

    Kungfumath wants to revamp boring e-learning portals

    “Play with numbers” in its literal sense.

    by KRISANA GALLEZO
    5 Dec 2014 | 1294 views

    The heat is on: This office literally gets a bit hot for their green drive

    The heat is on: This office literally gets a bit hot for their green drive

    Discover how they execute their green initiatives in the office.

    by KRISANA GALLEZO
    22 Jan 2015 | 1253 views
     

    MetLife builds its first global R&D hub

    MetLife builds its first global R&D hub

    It bills itself as a first-of-its-kind innovation centre for the insurance industry.

    by KRISANA GALLEZO
    26 Jan 2015 | 1233 views

    FTMSGlobal Academy Singapore launches new weekend MBA

    FTMSGlobal Academy Singapore launches new weekend MBA

    The course fee is below $20,000.

    by KRISANA GALLEZO
    8 Jan 2015 | 1028 views
     

    Here’s how migrants can be sure their loved ones back home paid the doctor a visit

    Here’s how migrants can be sure their loved ones back home paid the doctor a visit

    This NRI-focused startup also gives migrants monthly feedback from the doctor.

    by KRISANA GALLEZO
    7 Jan 2015 | 939 views

    ENVision campaign‘s ‘hard truth’ could make you think twice

    ENVision campaign‘s ‘hard truth’ could make you think twice

    Singapore might run out of space for trash by 2035 and more.

    by KRISANA GALLEZO
    15 Dec 2014 | 755 views
     
    close Don't Show Again

    STAY INFORMED! Get our free weekly newsletter