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 

Singapore In the 1970s, Couples had 2, 3 4 kids.What Changed between then and now ?

In Thailand in 1974 I believe, Konrad Wee centre and Ms. Mabel Wee (Konrad Mum)

In the 1960s, 70s, 80s and 90s, Singapore was a brand new third world country. People were literally living 'hand to mouth' and average monthly salaries in the 1960s (as a brand new independent country in 1965 having separated from the Federation of Malayan States),  was in the region of USD 100 to 400. 

In the 1960s, salaries were a pittance, compared to the then Great Britain (One GBP was 7 SGD and 1 USD was 4 SGD). People were eking very hard lives. There were people doing manual labour, from carrying rice sacks from the bumboats to the godowns in Boat Quay for example. Many people were trishaw riders, taxi drivers and construction workers. Gangster troups were aplenty, and there were numerous murders, crime, and rampant petty thievery in general society. Singapore had emerged from the British colonial past bruised and with an uneducated workforce hungry for work. The EDB was newly formed and the top administrators were in the process of conducting roadshows in the West enticing many companies to set up shop in Singapore. That I believe started to take shape in the mid to late 1970s. 

Yet, when I look back at my paternal and maternal families, I am happy to note that all of my uncles and aunts,had at least 2 children (many had 4) in their lifetime. Why ? 

On my mother's side, there were 4 sisters, and they each had

Anna (Dai Yi) : 2

Dona (Yi Ma) : 2

Mina (San Yi) : 4

Mona (Sai Yi) : 2

Kau Fu (youngest brother) : 3

On my father's side there were 

Paul (Eldest) : 2

Geoffrey        : 2

Alex              : 2

Felix             : 3 

Esther          : 2

Diana           : 3

Nowadays, many young men and women are putting off marriage altogether, let alone having children, and the alarming news is that the Total Fertility Rate (TFR) for Singapore in 2025 is a pathetic 0.85. That means, we are not replacing our Singaporean base.

While it is easy to open the doors to people of similar cultural backgrounds (like Malaysia and possibly Indonesia), this phenomenon of offering 'free passage' to citizenship riles many ordinary Singaporeans who have to serve mandatory National Service and the feeling of intense competition fighting for places for jobs (and reservist) leaves people with a 'fight for your own lunch' mentality.

So why were there many more children per couple way back in 60s, 70s 80s and possibly the 90s ?

Healthcare in 1960s and 1970s was quite poor.

Well for starters in the 1960s and 70s, Singapore was a poor 3rd world country. Our medical care and hospitals were overworked, understaffed and with poor health outcomes. As a result, our infant mortality (children dying from disease below the age of 5 years old) was high. 

Couples wanted to ensure some heirs to either take on the family name, and possibly one or 2 girls to 'balance' the equation in the family. Added to the mix was that if any one child died, there would be ample replacement(s). As a result, many parents had 2, 3, 4 and beyond. Also in the third world, 'many hands make light work' (Confucius), so the reasoning was that it was better to have more offspring to help out in the a) farm b) foodstall or c) provision shop.

This population spurt alarmed the then Government so much that the Ministry of Health had a 'Stop at 2' promotion to 'encourage' parents to reduce their productivity so to speak. (It was a bad decision in hindsight, looking at our current need to import foreign born people to shore up our service, manufacturing and financial sectors year after year).

Assets and Government flats were very affordable then

Assets like landed houses back in the day (1960s and 1970s) were very affordable then. I recall my mother going 'house hunting' with another good lady friend Nina Cohen and she told me some people were selling preowned terrace houses for as low as $4,000 in the late 60s to early 70s. While it is true that the average salary was around $300 per month, the affordability of the landed property assuming 20% of average take home pay goes to service the mortgage so $720 per year would go to paying off the mortgage, it would take all of less than 8 years to pay off for a terrace house in the 1960s to early 1970s based on the average salary of $300.

So the aspiration to find a nice partner, settle down and purchase either a Government flat (it cost only something like $6,000 or so for a 3 room flat) or even a private land house was realistic and achievable. 

From Left : Audrey, Tan  Gillian Khoo, Tan Xian and my brother John 

One parent stayed at home 

Thirdly, for most families, only the father or male parent worked. It was a good time, mothers (a good 80 to 90%) stayed and home and minded the kids. Hence, with a parent minding the child, why not one or two more ?  

Raising Children in those days was cheap. 

There was hardly any tuition centres or personalised tuition to catch up. Things like ballet, piano, swimming, badminton, coding courses and all manner of holidays were practically unheard of. 

Society was pretty much on a level playing field. We were all similarly poor yet so much happier then. 

Fast Forward 50 Years Later. 

What has happened to young couples after COVID 19 ?

My opinion is that young couples choose to want to 'have it all' ; a nice starter flat, an enviable lifestyle with holidays, possibly an EV car. That does not leave very much to having a kid or two ?  

Our Government has for so long gone down the path of accepting foreign workers as domestic help that I believe this fact is one of the reasons why couples choose to chase sought after private property (condominiums and to a certain extent landed property) where the cheapest property would cost $1.5 million and above.

Imagine a big chunk of the duo's earned income of (for example) $12,000. Say using my 20% rule again $2400. If they could fork out (for example) $500, 000 (using CPF and savings), and take a loan at today's rate of 2%. Even forgoing the interest component, they would end up paying the full amount in 35 years !

So, they put up 40% which is $4,800 per month. A hefty sum no less. They end up paying slightly over 20 years to repay only the principal. So it is likely to be 25 years.

The young couple are betting on a few things :

a) they will continue to upgrade their careers and earn more for the next 20 to 30 years 

b) the property prices will hopefully rise up and they can offload it in 5 years time with some capital appreciation.

c) the economy will be 'hunky dory' and not contract, and there will be no retrenchments.

d) there will be no health or family issues impacting the couple financially.

Of course, I exaggerate. The couple can always start with the Government Build To Order HDB flat, the selling price ranging going from $300,000 to over $600,000 new after subsidies.

The bottom line is this, they still need to fork out and repay for the flat for easily the next 15 to 20 years depending on their average take home salaries.  

Posing in Thailand swim Pool in 1974. 

So, with the price of the basics sky high, thats where the inertia and the apprehension lies.

Whats lurking in the horizon ?

> Perceived job loss from AI for many front line and repetitive work ; this means job security is very insecure.

>  Asset prices do not seem to come down ; since COVID, Singapore has seen the asset classes jump and stay there.

>  The Middle East Conflict is causing high oil prices and inflation is rearing its ugly head. The big worry is if the economy stagnates, and if there is no growth either through foreign direct investment through setting up of new companies, industries then we are facing stagflation. 

In summary - reasons why Singaporeans are having fewer or no children are :

1. Sky high asset prices 

2. Uncertain job climate 

3. Major economic restructuring with new jobs requiring AI skillsets

4. Young people's aspirations to own good class assets and fantastic life experiences over  raising family. (my opinion)

There it is. My humble opinion on what is leading to the low TFR in Singapore.