The company earnings season largely met expectations and many raised dividends presumably for SG60 celebration. My overall portfolio value climbed to 4.2%, underpinned by CPF contributions and lower expenses. The Reits stayed resilient and will provide nice payouts in the coming quarter. I'm thinking to add CICT and FCT if prices are attractive. Options trading contributed a nice amount. Throughout the month, I ate at home mostly and cooked as much as possible over the weekends. I hope to emulate this for March.
Going by the recent Budget announcement, Singapore's economy is swimmingly doing well. It grew 4.4% last year and achieved surplus in excess of $6b! Forecasts say that we can expect 2025 to be positive with around 2% growth, another surplus bonanza and an array of handouts eg CDC, U-save vouchers, SG60 gifts etc. It's like Christmas arrived early with presents. While I won't mind the government's generosity, there are some areas that can be better addressed. One, the fertility rate stayed at a historic low of 0.97, meaning that citizens aren't persuaded enough in spite of the better economic mood, support measures and a Dragon year. Cost pressures are surely one of many considerations. Perhaps the government can be bold and provide free textbooks at $200 per child (Singapore citizens only). Assuming 300000 per cohort of primary and secondary school students, that would incur $60m annually. A further boost would be to fully subsidize school fees which require another $108m (assume $30 per month). Two, the corporate income tax rebate will help a little for SMEs. Even if they are not profitable, $2000 cash grant would be given. In my view, this extra $2000 ain't moving any needle. What's needed is an ecosystem of local companies collaborating and preserving jobs. The government identified arts as an industry in need with the Culture pass, give them the funds instead. Or they could do a broad scheme for certain trades and direct those funds towards an insurance for retrenchment or job loss. Three, the $200 cap for personal income tax rebate is a token amount. I rather this be allocated to the lower tiered earners and none for those in the higher tax brackets. Four, not much was mentioned on housing except HDB flats will continue to remain affordable and there would be adequate supply. I propose a special tax for owners who specifically have HDB and private housing (they number around 3%). This group of people enjoy HDB flat subsidy/assessment benefits/rental income. The HDB flat is a public good and should stick to the concept of home for stay and not as an investment asset. Since the government disallowed private home owners from buying a HDB flat, then the same should apply vice versa or at the very least be taxed (heavily) for this unbalanced privilege. If anyone wants to invest in property, the private market is available. Leave the HDB out, period. Election is nearby so let’s see what other policies appear later.
Dividends as of February 2025: $1114.75 (avg $557.38 per month)
Tip: Kavalan Reserve Single Malt Madeira Cask, toffee, nutty, a great mouthful with an added spice yet smooth and inviting
