Growing Up 1966 - 1970

 

                                    Long Time Ago 1969 at the Marshall Residence. 

Those early years (the first 16) growing up at 6 Adis Road, Singapore 9 (there was only 1 post code number back in those days nearly 60 years ago) were in my opinion best characterized in one word :

"carefree"

Primary School - St Andrew's Primary (Woodsville Close) 

Homework was very rare, if any. My brother and I had Chinese tuition, from Primary 3, and my eyesight developed myopia from Pri 1 to Pri 3. I have 6 long time very clear recollections 

1) Eye Check

 the Nurse from MOH who came to check us with a visual chart, was shouting at me and sternly said " Dont bluff !" when I couldn't see properly past the first few rows.

2) Communal Brushing outside the Class.

we had dental hygiene daily, and all the Junior Primary school boys would squat outside the classroom and with their appointed toothbrush, and some toothpaste, brush vigorously and rise with their appointed tumblers.

Once, my then best friend Edward Ong and I came late and we rushed to the side to see that everybody has started their routine and we quickly assumed our places at the end of the line and brushed and gargles like nothing happened. 

3) Ting Xie 

my Chinese teacher was a Mrs. Pang, a huge heavy set woman and she would always conduct "Ting Xie" or spelling. Every time I failed, which was often. I would be summoned to the front to explain why I couldn't even remember 5 of the 10 words she told the class during spelling test. 

   She would then proceed to twist the living daylights of my ear, and I can still head the membrane crackling and the pain from the twisting punishment.

4) Taxi To and From School 

I was fortunate enough in Primary 3 to be ferried by taxi to and from school. My form teacher Miss Ang happened to also 'tompang' in the same yellow top and black bodied taxi. She was always dressed in very bright clothes, bright blouse and skirt and the smell of her perfume permeated the entire taxi. 

 

                                         1966 Sitting atop my father's Simca SU 7867 

5) Tuckshop Time 

Everyday in the morning, we would have our half hour recess or tuckshop time at 9.30 to10.00 am in the morning and from 3.30 to 4.00 pm if we were in the afternoon session.

   The place would be a regular mess, we had the drinks stall at one end and I recall having a drink (glass with Bandung, or glass jelly or some green stuff) for 5 cents. In those days, 5 cents went a long way, we could buy 3 sweets for 5 cents so the phrase "5 cents 3" became a catchphrase till inflation caught up with us. (We didn't know about inflation, it was just play, football and school all the time). A Mee Siam or Mee Goreng cost all of 10 cents, and a plate of Char Kway Teow cost 20 cents. 

   One big recollection still to this day is this. Whenever anybody had dropped the bowl of noodles, (mee siam, yellow fish ball noodles or char kway teow), the entire tuckshop would break and shout in unison.

  Picture this :  > Smash ! (the sound of breaking glass or bowl)

  All the Boys : " Awwwwww Paaaaaaaay !!!!!! ".                      

6) Dental hygiene Programme 

  In those days,  it consisted of regular checks of the boys' teeth, and the dental clinic was located beside the tuck shop at the bottom of some stairs. We boys took it as a 'death sentence' every time our names were called. My favorite impression all these years (or should I say depression) was that of the earlier boy who went to the clinic and had his tooth( teeth) extracted. 

He would walk up slowly with the orange card which had the next boys' history, and extractions. When he reached our class, the entire class would fall silent and the teacher would call out the name of the next 'victim' to go to have his teeth examined and most likely extracted if there was rotting or something wrong with their teeth. 

The tension was palpable, made worse with the antiseptic from the injection the previous boy had coming from his mouth. 40 boys would wait with dread until the teacher called out the next victim's name, the boy who kena (got) called would grimace, while the rest of the 39 boys would heave an audible sigh of reliet ! 

On looking back, I think this was the most hilarious experience of my Primary School days at St Andrew's School ! 

Carpe Diem ! 

A short pictorial of my first few years. No text just pics.

 

1965 3 Years Old at Raffles Place Fountain

Robinson's Store was in front of me. 

1963 at Adis Road

1 Year Going On 2 Years 

1963 at Adis Road.( 1 Year Old) 

The HIdden Pitfalls of Buying Malaysian Property.

 

With Karate Mates after class 4 years ago 

This is a post to remind people of my vintage, the young old of this fact. Right now, we are on the cusp of getting our CPF funds, and some of us would receive bonus funds from inheritance, or Singtel preference shares. 

Recently I have had some interest in Malaysia, and there are schemes called Malaysia My Second Home which intends to attract people, especially retirees. There are essentially 3 categories. I will delve into the top 2.

Platinum

-------------

Age (Min) 25+ ; 

Fixed Deposit : USD 1 M

Property Purchase : RM 2,000,000 +

Pass Duration : 20 years.

One Off Participation Fee :  RM 200,000 (S$ 55,000)

Gold

-------

Age (Min) 25+

Fixed D : USD 500 K

Property Purchase : RM 1,000,000+ 

Pass Duration : 15 years

One Off Participation Fee : RM 3,000

SEZ Category 

-------------------

Age (Min) 21 + 

Fixed Deposit : USD 50,000

Pass Duration : 10 Years

One Off Participation Fee : RM 1,000

Property Purchase : Direct from Developer.

Lets get to the chase. If someone from Singapore purchases a property (for example) for 

Purchase Price : RM2,000,000

Foreign Buyer 

Stamp Duty (8%) : RM 160,000

Other Fees (3%)

(Legal, Processing) :  RM 60,000

Total Purchase Price : RM  2,220,000 (estimated only)  (S$710,000)

Foreign Buyers MUST HOLD for minimum 5 years, else there will be Real Property Gains Tax. (RPGT).

Sell Within 5 Years. 

RPGT : 30%  

IF sell at RM 2,200,000

Tax is 30% of 200,000 ; which is RM 60,000 

Agent Fees (2%) : RM 44,000 

Total Extra Expenses : RM 104,000

Therefore, NET Profit / Loss :  (RM 124, 000)  (S$ 40,000)

Opportunity Cost

While this still appears to be a sensible move to some, do look at the opportunity cost if the buyer only has one home and he sells it to move to Malaysia. This may not be a wise move, if the property in Singapore still has 60 or more years left in the lease (for HDB properties which are 99 year leases), and in actual fact, the price might appreciate over the 5 years of living there.

Most Properties Depreciate in Value over Time in Malaysia.

With abundant land, developers always build new and push the envelope and price levels slightly higher (but not too high). So after 5 to 10 years, there will be newer condominiums and houses aplenty nearby with newer features and practically at the same price point.

If your property price drops, then its a nett loss regardless.

Currency Depreciation - Fluctuation 

After selling,there is the currency fluctation, so RM has been strengthening these past 6 months whereby the last 12 months it was weakening. If the resident can afford it, then he can hold it. If the RM when property is purchased is S$1 to RM 3.1 and 5 years later, it is S$ 1 to RM 3.5.

Using the example for  RM1,000,000. The purchase price is S$ 322,580 at S$ 1 to RM 3.1

If the property is sold at exactly the same RM1,000,00 at S$ 1 to RM 3.5. The sales price would fetch $285,700. 

When he changes back to S$, he effectively loses $36, 880. 

Bottom Line.

Retirees must be flush with cash to opt for the MM2H (for Gold Status, it is USD 500K or close to S$ 700K in liquidity to park in Malaysian approved bank) ; Only 50% maximum can be used to purchase the property (that is USD 250K or S$320,000 or RM 990,000), so the remainder must be borne from the MM2H resident to cover, and that would be easily another RM 500,000.

Bottom Line, S$ 750,000 in FD and another $150,000 for property purchase, so that is close to S$ 900,000 or even $1,000,000. 

With so many factors weighing in on foreign ownership (MM2H fees, RPGT, Stamp Duties and Excess Fees, and potentially disadvantageous exchange rate), perhaps, in the overall scheme of things, it might be better for the foreign investor to rent the property for a duration and understand all the pitfalls first hand then decide to buy under MM2H or SEZ plan when he feels comfortable.  

 

 

 

Stagnant Wages versus Rising Inflation Year after Year since 2020

 

This is the scary news coming out of the Office for National Statistics UK. Since 2020, average salaries of office and general workers have not risen AT ALL with the exception of 2020. In fact, the average salary FELL in 2021 TO 2022. 

Couple that with the cost of inflation year on year and you get a double whammy. 

Salaries remain stagnant while costs of things from basic necessities, to petrol and education, everything is biting into the average Briton's pockets.

Only a small percentage of Britons fully own their own homes. At last check, it was 36%, and another 30% have outstanding mortgages on their homes.

The typical fixed mortgage is 5.7% per annum for 5 year tenure. 

Over the last 5 years, the average house price rose from GBP 249,309 to GBP 268,000 or at a nominal appreciation in total of 7.5 % over 5 years or about 1.4% compounded each year.  

This means that even if you own a property (flat or house) the increase in the value of property cannot offset the costs of inflation of 4 to 8% per annum. Added to the fact that there is mortgage interest to pay too. 

At the end, the people who own houses, when they need funds (if they do not have emergency funds) when they sell ; they will liquidate and either :

a) rent

b) move to a lower cost country

c) downgrade to a more inexpensive property.

It is a rather frightening situation to be in.

Practical Steps to Offset Cash Capital Decay

        Here are some practical steps to ward off the inevitable cash decay over 10, 20 and even 30 years. I did some research using some tips from Perplexity and here is the post. To be very honest, we have been actively spreading the investment of liquid cash over these instruments below so this is not a theoretical speculative post, by any means. 

       Lets think about building a 'cash ladder', not 'investing all cash'. Cash decays mainly through inflation, low deposit yields, and currency depreciation. However on the flipside, it does give you safety and options. 

Keep Emergency Cash 

     Standby 12 - 18 months funds

    Depending on your monthly expenses, this may range anything from $5K per month to $10K per month. These funds are for emergency use, for survival and opportunity - like business and perhaps a surprise anniversary trip with your wife. 

    For business opportunities, be careful, always use your risk return calculation mindset to see whether the business is viable and the returns are worth whatever sum you put into.

   I have a small business, so recently we are asked to venture to sell equipment in Penang Malaysia to a top multinational pharmaceutical company. I did my math, flew to Penang, spoke with the stakeholders, and did my best pitch.

   The risks ? 

    About $1K in return airfare, hotel stay, expenses for 2 days and some opportunity costs (marginal since I have my staff covering for me in my absence). 

   The return ?

   If we secured the project, we would have earned approximately $100 K in gross profit.

   So the risk return is low investment cost and high return.

   I took it and flew to Penang,

   Outcome ?

   We lost the deal ; because we were bidding against an established incumbent supplier in Penang.

   The verdict ?

   Its a risk worth taking given the upsides are very high in light of our :

a) relevant experience in this industry of 3 decades

b) established and familiar supplier of the equipment whom I have personally visited in China and have 5 years prior experience selling their products. 

c) Downside of $1K is definitely manageabale from my point of view. 

   Put Idle Cash into Short Term Instruments.

  Safest options are 

> Singapore T Bills (was high 3.+ to 4.+ % per annum just 2 - 3 years ago)

>  High yield savings accounts 

>  Trusted funds managed by competent financial advisors.

>  REITs (dividends of 6%) ; however, the share price has eroded these last 2 years from geopolitical movements, the recent Middle East War and the formation of the multipolar world order leading to capital flight which cannot be forecasted accurately.

   I am honestly not savvy and have not ventured into ETFs, so I can't comment or write about my experience.

> Stay away from gambling either through casino, social media and cryptocurrency 

> Singapore Savings Bonds - use for mid term cash.

> Own real assets selectively ;  Property, REITS, infrastructure funds, and some commodities can offset inflation but they carry cycle, interest - rate and liquidity risks.

> Avoid over insurance and opaque products

   Time Horizon

   0 - 6 months                          Bank Cash

   6 - 12 months                        T Bills, Fixed Deposits, money market funds

   1 - 10 years                           SSBs, SGS bonds, conservative bond funds

   5 +                                         Global equities, REITS, Property, business reinvestment. 

 

 

An important Life Skill. How to manage cash capital decay - what they never teach you in school and while working

     In life, we learn things from school, and the main things we learn by interacting with people who have gone before us and 'won' in the game so to speak. I have been very fortunate to meet such a person and he was my best friend, and mentor, Roland Teo. He passed on this year on 31st January 2026 from complications of COPD or Constrictive Obstructive Pulmonary Disease.

   One great takeway he taught me over the 16 years I have known him and had the pleasure of dining with him is this below. Many people in Singapore, who have had compulsory Central Provident Funds CPF stashed away till they are 65 will get to utilize this through by regular payouts until they pass on. There will be many, who on top of the CPF monthly payouts will get a lump sum, either through inheritance from their parents by way of a will. 

                                Master and student during one of our regular weekly lunches 

                                                         with  Roland Teo Cheng San 

    This is where the problem comes in. Many people will lose this golden egg within months or a maximum of 5 years, all through wanton spending on expensive trips, lavish dinners, toys like designer bags, the latest EV SUV or sports car - its not wrong at all - it is their money after all - BUT what happens when there is so much life at the end of the money ?? 

    That is when the misery will set in, imagine you are 80 and cant afford even a decent meal in the restaurant, or go for a short holiday to (for example) Australia or UK to see your grandkids (quite a number of Singaporeans have family all over the world). Worse still, many have to work at 75 to 80 just to pay the bills.

Cash Capital Decay

What exactly is this ?

This is a situation, which happens when your cash loses real value or earning power over time. This is the loss of purchasing power overt time. A very real scenario for many people about to retire or already retired from the workforce. They would have accumulated some money, and possibly had some family inheritance endowed upon them. 

What are the main causes for this decay or decline ?

> Inflation : In Singapore it is about 2.5 to 3% per annum.

> Currency depreciation : We are fortunate that SG dollar has appreciated, over many of the major currencies like USD and RMB. But against the MYR or ringgit, it has dropped quite significantly.

> Low interest rates : If you put your inheritance money in fixed deposits, which garner only less than 1% per annum and the inflation rate if say 3%, you lose 2% in purchasing value per year. 

   Multiply than by 20 years and in theory your (for example) $1 Million today is only worth $600,000 in today's purchasing power terms IF you continue to keep that $1 Million in the bank. 

> Opportunity Cost : There are many businesses looking for funds. Its true many go bust, but it might be beneficial to put your spare liquid cash in mutual funds, TBills (it was 4% a few years ago), or investments such as property (of course the entry barrier for property is $1.5 million for a new condominium of  a miniscule size of say 800 sq ft). 

> Fees or Taxes : Bank charges, witholding tax or account costs, all can slowly chip away the balance of your inheritance.  

   So what is the strategy to counter and grow out of this problem whereby 90% of people feel trapped by the sinking value of their liquid capital ?

   Watch out for the next post while I try to give some ideas 

  (I am still tweaking my own model). 

 

Trip to London (and Greece) in June 1974 - 5 months before the PSLE !

 

Trafalgar Square June 1974

The month and year was June 1974. I was 11 going on 12 years of age. My Dad (Papa as I called him) had this brilliant idea of bringing me to experience life in Europe. My plane ticket was still considered as a child seat, so it was economical for him to take me along to see his Auld England or his 'motherland'. He was a real Anglophile, so thought the world of the British Empire of Winston Churchill and the rest of them.

London Tower Bridge in the Background - June 1974.

We headed to Greece first, and I recall sitting beside my father atop one of the columns with pride beside the ancient Parthenon in Acropolis, Greece. We spent something like 1 week in Athens before spending another week in London.

I was doing pretty well in Primary 6, it was the Primary School Leaving Examination year (Nov 1974) and in June, during the mid year holidays of one month, had the privilege of taking 2 weeks to fly to Greece and England - just like that. The year end PSLE exams were just around the corner, and no parent of today would dare allow their children to enjoy 2 weeks in Europe - I am sure. 

I was a privileged and an extremely fortunate son. 

Feeding Pigeons June 1974

I believe, this was probably my first or second time I was taking a plane. Perhaps the first was in 1973, maybe to Thailand, though I couldn't be absolutely sure. To be clear, in those days, practically no one took flights overseas, Singapore was still a pretty poor and backward country. Most of our Sanya Samaki trips overseas, (like to KL, Penang, and even Bangkok) were all by coach, and the trips those days took easily 1 to 2 days.

With the Bobby in the Background

England was a revelation for this young impressionable kid. I recall my Papa bringing me to see some of his old friends from Uni days, as well as I think we watched a classic play called, "No Sex Please we are British !" which ran at the West End for years and years. We also were invited to some of his friends estate houses and ate some peculiar curry which his wife made for us. I think we also watched another famous play by Agatha Christie called "The Mousetrap" which was also world famous.

Outside St Paul's Cathedral

We stayed a few nights at the Bed and Breakfast and had the last 2 nights at a hotel called "The Strand" which my father had insisted on taking me. He wanted me to try all the different levels of British hospitality from warm English simple houses rented out to tourists and the last few nights we were to stay in a 5 star ambience.

11 Year Old Me at St Paul's Cathedral 

The final memoery I had was that I liked the European experience very much and when I returned home, I remember telling my mother than the peas she made in a dish reminded me of Jolly Old England !

Carpe Diem