Savvy Muslim Guide by RizqX enters the 2nd week!

This is your go-to compass for all things (personal/halal) finance in Singapore, curated by fellow Muslim investors. We'll dish the intel on halal investments, navigate personal finance trends, and keep you up-to-speed on news that'll impact your wallet – all with a sprinkle of Islamic values.

Get ready, your gateway to being a financially savvy Muslim in Singapore.

This week (15 to 21 December 2023), we'll explore Singapore's 2024 outlook which is expected to be plagued with inflationary pressures among others. We dive deep into home ownership for Singaporeans, whereby it can be more than just a roof over your head, but a potential investment option. We also have a few investment options gaining traction in Singapore, from the highly discussed T-Bills to cryptocurrency. Special shoutout to Bloomberg terminal users who will have a new Sukuk indicator to make filtering shariah-compliant investments even easier.

Singapore

1. Singapore’s economic upswing unlikely to last: experts [SBR]: ICAEW predicts that the economic upswing from Singapore's 3Q23 will "likely subside" due to global challenges and loosening labour market conditions. Furthermore, with high-interest rates and broadly flat property prices, ICAEW noted that MAS may be prompted to loosen its tight monetary policy in the coming year.
2. Economists cut 2024 growth forecast for Singapore [SBR]: Economists are revising their forecasts downward, expecting Singapore's GDP growth to reach 2.3% in 2024, lower than the earlier 2.5% prediction. Inflation is predicted to outpace GDP growth, with CPI-All Items (headline) inflation and MAS Core Inflation growths to be at 3.4% and 3.0% respectively.
3. Muted outlook for Singapore consumer sector as inflation prompts belt-tightening [BT]: The consumer sector appears particularly muted, with inflationary pressures dampening spending enthusiasm as well as increased outbound travel further diverting demand. Nonetheless, compared to his 2023 full-year forecast, Maybank Securities’ economist Brian Lee expects better retail sales growth in 2024 at just 3%.

Home Ownership: Private, HDB, Rental, or Malaysia

1. Guide to using your CPF funds to pay for your HDB flat or private property in Singapore [Yahoo Finance]: Understand the rules to maximise your CPF to purchase a home. The rules differ depending on the type of property and whether you are taking a bank loan, HDB loan or no loan. Hint: CPF can be used for down / monthly payments but not for some costs like stamp duty.
2. Occupancy cap for larger HDB flats and private homes to go up to help ease rental pressure [ST]: Singapore to raise tenant cap for flats and homes from 6 to 8 to ease rental woes, starting Jan 2024. The temporary measure applies to 4-room+ HDB flats and private homes exceeding 90 sqm. This could cool rental prices and benefit tenants seeking larger homes.
3. Malaysia is third most popular country for Singaporean property buyers [NST]: Real estate agency Juwai IQI noted that Singaporean buyers account for 13.2% of their Malaysia property purchase enquiries this year. Given its proximity and investment potential, Malaysia remains a hot area for Singaporean buyers. Furthermore, the new Singapore Rapid Transit project will prompt a rise in Singaporeans considering home ownership in Malaysia.

Invest: T-Bills, Crypto, ETF, Currency

1. Should I Invest in Singapore T-Bills?(Dec 2023 – Jan 2024) [MoneySmart]: We've heard lots of noise around T-Bills this year, but before jumping in, uncover the pros and cons of such investment in this article. T-Bills, unlike bonds, do not pay interest periodically and have to wait until maturity. This means that your cash will be locked up for 6 months or 1 year. However, this investment is a possible option for those looking for a low-risk, short-term alternative from the usual stocks to diversify portfolios.
2. Institutional investors in Singapore plan to increase crypto investments in 2024: Survey [ST]: Sygnum surveyed over 150 institutional investors and found that the majority (66%) plan to increase their cryptocurrency allocations in 2024, expecting higher future returns. Furthermore, 61% view Singapore as crypto-friendly. Sygnum noted the "growing anticipation" of the approval of the first Bitcoin spot ETF with BlackRock, opening new opportunities in the next year.
3. Digital brokerage Moomoo gets in-principle nod in Singapore [ST]: Moomoo, a digital brokerage, obtained in-principle approval from MAS, and is awaiting the full licence to offer their crypto services to both retail and institutional investors. This move bolsters Singapore's growing crypto hub status, propelled by rising investments and positive views from institutional investors.
4. New ETF allows direct access to high-dividend Chinese stocks: What long-term investors should know [ST]: Singapore investors seeking high dividends and China's growth potential can now tap into the CSOP Huatai-PineBridge SSE Dividend Index ETF. This ETF, accessible through a unique Singapore-China link, offers exposure to top Chinese A-share companies boasting higher yields than US counterparts. However, currency risk exists due to renminbi-denominated underlying assets, and investors should do their due diligence and/or consult a financial advisor before embarking on this investment.
5. Yen slides against Singdollar after Bank of Japan stands pat on ultra-loose policy: BOJ continues with its "ultra-loose monetary policy" even though there were expectations for policy changes. The Yen slid 1.3% against the US dollar and Singapore currency, and as of 19 Dec 2023, the Yen has weakened nearly 11% against the Singapore dollar this year. Nonetheless, expectations for a policy change remain for the Jan-Mar 2024 period.

Islamic Finance

1. Bloomberg, IdealRatings launch Sharia-aligned Sukuk indicator [IdealRatings]: A new collaboration between Bloomberg and IdealRatings provides Islamic investors with a powerful tool for selecting Sharia-compliant Sukuk (Islamic bonds). The Bloomberg Terminal's new Sukuk Shariah indicator, rigorously screened to AAOIFI standards, boosts transparency and decision-making for investors in the growing Islamic finance market.
2. Etiqa hopes to end 2023 with RM1bil profit [NST]: Currently ranked fifth largest in the region, Etiqa aims to be among the top three insurers in SEA. The insurer has surpassed their 2022 pre-taxa profit in the first half of FY2023, and hopes to close the financial year with the RM1 billion pre-tax profit. In the first half of 2024, Etiqa is expected to enter the takaful markets in Singapore and Philippine.

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