Strong Singapore Dollar

Posted on August 30, 2011 by Curious Cat

The Singapore dollar has been very strong. This is a sign of a strong economy. But it also brings challenges for an economy when its currency appreciates. Competing against companies internationally is more difficult as those wishing to buy Singapore products and services have to pay the increased prices due to the currency appreciation. Often companies will absorb part of the currency increase but that reduce their profit (or forces them to reduce costs – which can mean layoff and reduced pay). Those making Singapore dollars though get the benefit of being able to buy more for the same price – the same S$100 buy 10% more if the currency has risen 10%.

Many countries try to devalue or at least prevent increases in value in their currency as this is often easier for politicians to do than helping move the economy to a new reality. Singapore however has taken serious steps (as you would expect, taking smart economic steps for decades is why their economy is so strong and currency has done so well) to accept that as they will have a stronger currency (especially when they see what Europe and the USA are doing – acting irresponsibly and making it hard to have faith in their currencies).

Here are some charts of the Singapore Dollar (SGD) versus other currencies over the last 12 years.

chart of the Singapor Dollar v. US Dollar 1999-2011

From 1999 to 2011 the Singapore Dollar (SGD) is up 37% v. the US Dollar. And just since January 1st of 2009 it is up 19%.

See the current SGD to USD chart on yahoo. Such a rapid accent in the currency makes it difficult for companies and individuals to react.

From 1999 to 2011 the SGD has risen 11% versus the Euro. Since January 1st of 2009 the SGD has risen 15%.

Continue reading →

Manchester United Said to Plan $1B Singapore IPO

Posted on August 17, 2011 by Curious Cat

Singapore’s finance sector continues to do extremely well. Singapore and Hong Kong continue to battle for Asian financial center leadership (even over Toyko and mainland China). This is a sign of Singapore’s rising financial status in a way that will catch the notice of many football fans around the globe. But it is only a visible manifestation of continued long term success in the financial community. Manchester United Said to Plan $1B Singapore IPO:

United says it’s the most-supported team in the world, with a club-sponsored survey revealing a global following of more than 330 million. The Glazers’ commercial operation, led by former J.P. Morgan banker Edward Woodward, has secured global sponsorship and licensing agreements that have led to annual revenue doubling to about 300 million pounds in six years.

The club has chosen Asia for its IPO because of its popularity in the region, one of the people said. The team has fan clubs in countries such as Thailand, Singapore and South Korea and a supporter base there of 190 million. It’s been searching for real estate in the region in an effort to boost its commercial operations.

Singapore boasts Asia’s highest concentration of millionaires and a United-themed restaurant.

Recently Singapore’s national team moved forward to the next round of World Cup qualifying with a tie of Malaysia (they beat Malaysia 4-1 earlier). Singapore’s team is ranking 131st in the world.

Singapore Ranks Highly as an Expat Destination

Posted on April 27, 2011 by Curious Cat

Global Professionals on the Move Report 2011 analyses responses from 2,637 professionals from 85 different countries with qualifications of a bachelor degree or above. The most popular destinations for those working internationally (outside of their country): USA (18% of respondents), UK (11%), Australia (10%), Switzerland (6%), Singapore (5%), Canada (5%), Hong Kong (4%).

The press release also states that 42% of Singapore’s population is made up of expats and overseas students and 80% of the professionals surveyed found it easy to settle in and make new friends in Singapore.

Working overseas received a great endorsement from participants who had already relocated, with 98% saying they would recommend working abroad to others and 76% of those away for at least three years saying they would stay working overseas for longer.

Singapore’s Health Care System

Posted on April 13, 2011 by Curious Cat

The Singapore Health Care system costs in Singapore costs less than 25% of that in the USA and results are better. In Singapore everyone has 6-8% deducted from your income for a medisave account that is used for hospitalized medical expenses. The government subsidizes the health care system but the system is based significantly on the consumers paying (from their medisave account or cash) and therefore making economic decisions.

The medical system in Singapore has been designed with much more attention to costs than the USA system. Hip replacement costs US$43,00 in the USA and US$12,000 in Singapore. A heart bypass costs US$127,000 in the USA versus US$22,500 in Singapore.

The quality of Singapore health care is at the highest level worldwide. There is health insurance available in Singapore though many rely just on the medisave accounts. Catosrpohic health care coverage is widely used.

What we can learn from Singapore’s health-care model

Matching Singapore’s performance in our $15 trillion economy would free up $2 trillion a year for other public and private purposes.
…
roughly one-third of health spending in Singapore is paid directly by individuals (who typically buy catastrophic coverage as well); in the United States, by contrast, nearly 90 percent is picked up by third-party insurers, employers and governments. Singaporeans make these payments out of earnings as well as from health savings accounts. The system is chock-full of incentives for thrift. If you want a private hospital room, for example, you pay through the nose; most people choose less expensive wards.
…
Supply-side rules that favor training new family doctors over pricey specialists are more extensive than similar notions Hillary Clinton pushed in the ’90s. And in Singapore, if a child is obese, they don’t get Rose Garden exhortations from the first lady. They get no lunch and mandatory exercise periods during school.

Singapore Ministry of Health on the system:

Singapore healthcare begins with building a healthy population through preventive healthcare programmes and promoting a healthy lifestyle.

Good, affordable basic healthcare is available to Singaporeans through subsidised medical services at public hospitals and clinics. Our hospitals and healthcare system will never withhold help to a Singaporean because of financial limitations. Yet our philosophy promotes individual responsibility towards healthy living and medical expenses.
…
Medisave may be used for the outpatient treatments of four chronic diseases (diabetes, high blood pressure, lipid disorder and stroke), which affects about 1 million Singaporeans. MediShield provides a low cost catastrophic illness insurance scheme, designed to help members meet medical expenses from major or prolonged illnesses.
…
In 2008, Singapore spent about S$ 10.2 billion or 3.9% of GDP on healthcare. Out of this the Government expended S$2.7 billion or 1.0% of GDP on health services.