After the landslide victory by the incumbent, how do we position our investment?
The resounding mandate given by the people means the government can proceed with its current goal of managing the Singapore with ECONOMIC GROWTH as its priority.
The government will continue with its way of increasing GDP thru' increase labour participation.
Some things that will happen :-
1) 6.9mil population is a GO-Ahead. I would think 10 mil population is the stretch goal the government is aiming for within the next decade.
2) Foreign labour quotas will once again be relaxed to cope and free market mechanism will be at work. Your wages will have to be competitive vis-a-vis the foreigners.
3) Infrastructure spending will be full-steam ahead to cope with the increase in population.
Implication for investment :-
1) Properties will be a good long-term investment once again. Your $1mil property (at 6 mil population) will become $2mil property (at 10 mil population) once population stretch goal is achieved. So, buy properties once cooling measures are relaxed. Your rental will be supported by the increase in tenants (since most foreigners are working here and will not be buying). The buyers will probably be your global investors who will once again be convinced Singapore is a pro-investment country managed by a competent team of leaders well supported by its the citizens.
2) Shares in general (I will try to focus on the GLCs and banks and telcos and property/reits companies) will be a good buy for the long term as they will be able to take advantage of the increased in labour at a cheap price while having an increased consumption demand from the increase population. Your companies bottom line will be improving yearly till 10mil population stretch goal is achieved.
With this win, I have 100% confidence in the above 2 investment classes in Singapore. I will stay invested.
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