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Savvy Muslim Guide: Everything you need to know to be financially savvy (4 - 10 Jan 2024)
Savvy Muslim Guide: Everything you need to know to be financially savvy (4 - 10 Jan 2024)

Summary

In this week's #newsletter, we have big news 💫 #Bitcoin-spot ETF has been approved by the SEC. Are we one step closer to having more stability and legitimacy to the #crypto market? (P.S.: we have an explainer video here: https://lnkd.in/gEWihfjs) 1️⃣ In other Investment-related news, we looked at other ETF options, as well as S-Reits. Interestingly, Gen Zs are bringing a new approach called "soft saving", a strategy worth considering. 2️⃣ In Singapore, we are expecting "extra" cash from the government through the GST Voucher 2024! We are also expecting older workers to continue working past retirement (oh no!), and budget 2024. 3️⃣ The HDB market has been quite exciting, with more flats but fewer launches. This spaced-out approach has pros and cons, which will be explored further. Also, resale prices continue to rise!

Savvy Muslim Guide: Everything you need to know to be financially savvy (4 - 10 Jan 2024)


BIG NEWS!🚨 Bitcoin-spot ETF has been approved by the SEC. Are we one step closer to having more stability and legitimacy to the crypto market?

In other Investment-related news, we looked at other ETF options, as well as S-Reits. Interestingly, Gen Zs are bringing a new approach called "soft saving", a strategy worth considering.

In Singapore, we are expecting "extra" cash from the government through the GST Voucher 2024! We are also expecting older workers to continue working past retirement (oh no!), and budget 2024.

The HDB market has been quite exciting, with more flats but fewer launches. This spaced-out approach has pros and cons, which will be explored further. Also, resale prices continue to rise!

Singapore

  1. GST Voucher 2024: U-Save, S&CC rebates, cash payout, date, eligibility and more [AsiaOne]: With the rising cost of living, here's some good news for our fellow Singaporeans - "extra" cash in the form of GST Voucher scheme! It can get quite confusing but in short, there are 4 main freebies for 2024: U-Save (utilities rebates), GSTV Cash, GSTV Medisave (for those 65 years old and above), and GSTV service & conservancy charges rebates. To check your eligibility, do check out this detailed article!
  2. Employers in Singapore urged to foster age-friendly workplaces [HRD]: Singapore's aging population means that there's a growing need to tap into older employees, who are a valuable part of the workforce. The good news is that over 90% of senior workers seeking continued employment found work in the same job and retained their previous wages and benefits at the same time. However, this also means that working past retirement age is soon to be a norm. [Writer's thought: When can you retire?]
  3. President Tharman briefed by DPM Wong on projected returns from investing Singapore reserves [BT]: In short, they had a meeting about projected returns from investing Singapore's reserves; the President has to agree with the investment projections; Singapore Budget 2024 is happening on 16 February 2024.

HDB / Property

  1. HDB to launch 19,600 BTO flats in 2024; three instead of four launches to be held [BT]: Singapore's Housing Board will launch 19,600 BTO flats in 2024, with 3 launches in February, June and October 2024 (save the dates!). Also, launches from October 2024 will be under the new classification of Standard, Plus, and Prime categories. This announcement is great news as we can expect shortened waiting times for some flats. All pandemic-delayed projects will be completed by early 2025.
  2. Spacing out BTO launches could increase chances of getting a flat, but some may turn to resale market: Analysts [CNA]: How does having 3 launches in 2024 affect us? This increases the chances of getting a flat in a BTO exercise, even for those unsuccessful applicants. However, as the supply will be spread out over a longer period, some buyers may turn to the resale market if they find the wait for a BTO flat too long.
  3. HDB resale prices rise 0.6 per cent in December, 48 units sold for at least $1m each [ST]: HDB resale flat prices continued to climb in December, rising 0.6% from the previous month. This brings the year-on-year growth to 5.8%, slower than the 8.8% increase in 2022. Analysts attribute the continued price increase to a tight supply of flats and strong demand from buyers.

Invest: Soft Saving, S-REITs, ETF

  1. SEC authorises Bitcoin-spot ETFs in crypto's breakthrough [The Edge SG]: SEC has finally approved Bitcoin-spot ETFs, allowing investors to directly invest in Bitcoin through exchange-traded funds. This is a significant development for the cryptocurrency industry, as it provides a more traditional and regulated way for investors to access Bitcoin. Proponents argue that Bitcoin ETFs could bring more stability and legitimacy to the crypto market, while critics warn of potential risks associated with increased institutional involvement. The first Bitcoin spot ETFs are expected to launch in the coming weeks, and it remains to be seen how they will perform and impact the broader crypto market.
  2. Should investors invest into these STI-tracked ETFs? PhillipCapital takes a closer look [The Edge SG]: PhilipCapital looked at Two STI-tracked ETFs, Nikko AM & SPDR, and noted that it may present an opportunity for investors to diversify their holdings. They offer semi-annual dividends (3.3%) exceeding Singapore's 10-year bond yield (3%). PhillipCapital recommends them for long-term, cost-effective Singapore exposure, but notes market risks and individual stock dependencies.
  3. Singapore’s largest S-REITS averaged 5.6% dividend yield in 2023: SGX [SBR]: The 5 largest REITs averaged 5.6% in dividend yield in 2023, and Frasers Logistic and Commercial Trust (FLCT) maintains the highest indicative yield, at 6.2%. Meanwhile, CapitaLand Integrated Commercial Trust (CICT) maintains the highest market value amongst S-REITs, at S$13.4b.
  4. Will the Lion roar this year? [The Star]: With strong fundamentals and a diversified economy, Singapore is expected to see an uptick in 2024, even as global concerns remain. The author noted that investors looking for opportunities in the region might find Singaporean sectors like semiconductors, REITs, and technology attractive. Furthermore, Maybank Investment Bank recently pointed out that the Singapore market, as a whole, is severely undervalued, based on PE. [Writer's thought: Do you trust PE ratio though?]
  5. Ever Heard of “Soft Saving”? Here’s Why Gen Zs are Obsessed With It [MoneySmart]: Forget rigid budgets and strict savings plans. Gen Z is embracing "soft saving," prioritizing immediate experiences while still keeping an eye on the future. This helps to reduce the pressure to choose between living and saving. Furthermore, having immediate rewards increases motivation and satisfaction. Is soft saving for you?

RizqX's Savvy Muslim Guide is a weekly newsletter on LinkedIn.

We want to help fellow Muslims in Singapore be financially savvy by providing a comprehensive view of the latest happenings that will impact wallets. Of course, we have a sprinkle of Islamic values curated by fellow Muslim investors.

How can we make this newsletter more beneficial to you? We want to hear your thoughts, DM or email yankai@rizqx.sg now!

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