Savvy Muslim Guide: Everything you need to know to be financially savvy (22 - 27 December 2023)

RizqX's Savvy Muslim Guide is now 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.

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

This week (22 - 27 December 2023), we power through a daunting topic which hangs over our heads as we approach 2024 - the rising costs of living. We learn ways to tackle inflation and may even end up finding our greater purpose in life.

Property remains a hot topic, from rent prices to retirement in Malaysia. We also look at popular insurance and investment options in Singapore. While we seek to gain FIRE, a special note from our team about the popular (investment) scams going around recently.

Finally, happy 2024! May we equip ourselves with the knowledge to navigate an exciting new year, share this newsletter with those around you!

Inflation

Shipment delays, higher rates expected in 2024 as water levels in Panama Canal fall to 73-year low [ST]: The Panama Canal is experiencing its lowest water levels in 73 years due to climate change, causing shipment delays and higher shipping rates. If such conditions continue, then we can expect higher costs as liners are restricted from using their full capacity, leading to higher transit costs which will likely be passed on to consumers, particularly grains and Liquefied Natural Gas.
Money No Enough: 7 Financial Expenses (And Rates) That Will Go Up in 2024 [Dollars and Sense]: This article highlights key increases that Singaporeans should look out for in 2024. These include 9% GST; Additional Buyer Stamp Duty Rate and Property Taxes; public transportation fees; CPF rate; utilities (service fees, and water and electricity prices); and bank charges.
How to offset the rising cost of your child's education in Singapore [AsiaOne]: Raising a child will cost, on average, S$70,000 based on local and government school rates. If your child is planning to go abroad for undergrad, the cost will be even higher. Of course, you have to factor in the annual education inflation rate of 2.86%. While this number is daunting, parents can plan ahead with an education fund, and look for subsidies and bursaries listed to offset some costs.
The New 5Cs: Why The Singapore Dream Is No Longer About Credit Cards, Country Clubs & Cash [Dollars and Sense]: The 5Cs of Singapore have evolved to Career, Community, Choice, Car and Condo. This reflects our aspirations for a better life, such as having better flexibility and greater fulfilment in our work and life. The article also discussed why Credit Card, Country Club and Cash are no longer relevant in today's world.

Property

Condo rents slide for 4th consecutive month in November, but HDB rents rebound [ST]: Condo rents in Singapore have fallen for the fourth consecutive month, while HDB rents have seen a slight rebound. Condo rents are expected to remain subdued, with a potential increase in the first quarter of 2024. HDB rents are projected to grow by up to 10% in 2024.
When Is The Best Time To Sell Your House In Singapore? [Stacked Homes]: While this is a common question, it is almost impossible to have a definitive answer. "Best Time" requires more clarity, and boils down to your quantified investment goals and personal financial situations. You should be mindful of your desired returns.
7 Surprising Hidden Residential Plots On The Master Plan You May Not Know About [Stacked Homes]: Currently, 7 non-residential buildings are built on residential plots, including Delta House, Lam Soon Industrial Building, Autobacs, The Rail Mall, ISS, and Pearl's Hill Care Home. It may be beneficial to be aware of these locations, even though we'll never know when these residential plots will be redeveloped.
Malaysia eases rules for retirement residency visa but piecemeal announcement has wealthy foreigners holding off [CNA]: Malaysia revamped its retirement residency programme titled "Malaysia My Second Home (MM2H)" by introducing a three-tiered requirement. This "significantly widens" the foreigners who qualify for the programme, especially for middle-income earners from Singapore, China, and the UK among others. The full list of requirements has yet to be announced.

Insurance

Income's travel insurance review: Covid-19 coverage, pre-existing conditions, promotions, premiums [AsiaOne]: This article reviews Income's travel insurance, comparing its cost, coverage, and benefits to other options. While it's pricier, it offers generous trip cancellation and pre-existing condition coverage, including COVID-19. However, the medical coverage is lower for seniors and extreme sports aren't covered.
Singlife acquired by Sumitomo Life [IB]: Major movement by one of Singapore's top six insurers.

Invest: Bonds, Crypto, and more?

Your investment resolutions for 2024 [BT]: Royston from The Smart Investor shares his strategy for 2024, including diversifying his portfolio, growing his dividend stream for passive income, and approaching investment through a multi-faceted angle. He also highlighted the importance of recording the wins and losses for learning.
Crypto hedge funds gear up for ‘token mania’ after 2023 rebound [BT]: Experts noted that 2023 felt like a year of recovery for Crypto, and 2024 is looking positive. Do check out last week's newsletter for more details, we've talked about Singapore's Crypto updates as well as the 2024 outlook.
Singapore government bonds to retain some popularity despite falling yields [BT]: Despite expected yield decline due to potential Fed rate cuts, Singapore government bonds retain popularity for their security, high recent demand, and appeal to risk-averse investors. Some analysts predict decreased demand when other asset classes become more attractive, but emphasise the potential for sustained interest from banks and retail investors seeking safe havens in an uncertain economy.

Important note: SCAM ALERT!

Scams lurk in all corners, from housing deals fueling dirty money to deepfakes of officials promoting investments. Even those attempting to lower the costs of living by buying cheap eggs fell victim, losing their life savings. Stay vigilant: verify info, be wary of too-good-to-be-true offers, and trust official channels over emotional appeals. Protect yourself!