Singapore Savings Bond (SSB) updates 2022

 

As you can see from the statistic and chart above, you will notice the overall interest rate SSB offered has risen significantly since Dec 21 and has maintained moderate increase over the next few month. This was also supported by the strong takeup volume since Dec 21 due to higher interest offered. (For the Mar takeup volume, it will only be release on Mar. However do expect the takeup volume to be the highest as compared to previous months due to higher interest offered in the March issue.) Based on the analysis, interest rate seems to be on an uptrend in the coming months as MAS is tightening monetary policy to fight inflation. 

If you have idling cash lying around, do take advantage of the Mar SSB issuance and subscribe for it as is giving 0.59% for 1st year and 1.35% for the 2nd year. (Although the interest offered does not match inflation but it can help you cushion some inflation impact.) 

SSB can be withdrawn at anytime on a given day of the month and you still get to earn accrued interest! Do find out more about how to apply for SSB on the link found below:

http://kfgw-investing.blogspot.com/p/bond.html

Last updated 6 Feb 2022

Market updates 2022

 

Few days back, you might have heard of MAS is going to tighten its monetary policy. Well basically MAS has set a range of how much SGD can appreciate or depreciate before they take action to buy SGD if it falls below the range and vice versa. By tightening monetary policy means allowing SGD to appreciate and fluctuate towards the higher side of the range which result in our currency strengthening. With SGD strengthening will result in foreign goods to be cheaper, thus consumers would want to spend more. However this will result in a decrease in investment and savings as consumers would want to spend more to take advantage of cheaper goods. Foreign investment will also decrease as it will be costlier to invest in Singapore given SGD strengthening. In time to come, FED will likely to increase their interest rate. As SGD interest rate is closely pegged to USD interest rate, SGD interest will likely to increase as well. 

With interest rate rising coupled with SGD appreciating will cause a negative impact in Singapore equity market going forward.

*Last updated 31 Jan 2022