✨ Happy New Year ✨ This week (28 December 2023 - 3 January 2024), Savvy Muslim Guide looks forward to the future, highlighting what to expect in 2024.

We then deep dive into Singapore-related issues, such as rising utility prices, how to maximize CPF, and even new approaches to finding a trustworthy insurance agent.

For investment-related updates, we have some traction around ETFs, SSB, Crypto as well as REITs. While it is essential to grow your wealth, do learn how to do so wisely, and take charge of your investment.

Lastly, we briefly looked at the global Islamic economy for the last decade, as well as the path forward. In short, it will be an exciting and fruitful journey ahead - let us journey ahead together.

Outlook 2024

1. Look Ahead 2024: Stronger economy, lower inflation and interest rates expected, but experts urge prudence [TodayOnline]: The title pretty much effectively explained the article. But food for thought for those looking to invest to grow their wealth, would you consider mid-to-long-term diversified portfolios to reduce the impact of market volatility?
2. Investors are bullish on Asia in 2024. Here’s what to look out for [CNBC]: Analysts are optimistic about Asia in 2024, expecting 4.2% growth compared to 2.9% globally. China's slowdown is a worry, but Japan and India are seen as bright spots. Interest rate cuts by central banks are also expected to boost the region.
3. Singapore banks had a Goldilocks year in 2023, but 2024 not likely to be as benign amid tepid loan growth [BT]: Singapore banks, including DBS, OCBC, and UOB, are unlikely to replicate the record earnings reported in 2023 due to limited earnings growth and increased cost pressures. Despite the cautious asset quality outlook, the banks maintain strong return on equity and capitalization levels, making them attractive as a yield play in Singapore. However, they are expected to underperform compared to other banks in Asia due to negative earnings growth and high sensitivity to rate hikes.

Singapore

1. Household electricity, gas bills to continue climb in Q1 on higher tariffs, GST increase [BT]: Singapore's household electricity and gas bills are expected to rise in Q1 due to higher carbon tax and upcoming GST increase. SP Group estimates that the average electricity bill (for a 4-room HDB) will increase by S$4.39 before GST. To help consumers, the government will provide additional U-Save rebates.
2. 1.27 million Singaporean households to get $500 CDC vouchers each from Jan 3 [ST]: Singaporean households can claim $500 CDC vouchers each from Jan 3 to help with daily expenses due to rising inflation. The vouchers can be used at supermarkets and heartland businesses. Furthermore, there will be cash payouts for eligible seniors and MediSave top-ups in Feb 2024.
3. 6 things to note about CPF contributions in Singapore [Yahoo]: This article explains what CPF is and how you can maximize it. We would like to point out these three important items which you may not be that familiar with: point 4 CPF nomination, point 5 investing with CPF funds, and point 6 using CPF to buy property.
4. Can you trust your insurance agent? This Singaporean set up a website to rate financial advisers [CNA]: A new website called Agenttrust.sg lets people rate insurance agents and financial advisors. The founder was frustrated with his own experience and wanted a platform for reviews. Some in the industry worry about anonymous reviews' validity, but others see it as a helpful tool for consumers. Will you use this platform?

Invest: ETFs, SSB, Crypto

1. Don’t rush, make informed choices: 5 ways retail investors can take charge in 2024 [ST]: President of Securities Investors Association (Singapore) David Gerald explores 5 ways to help retail investors in 2024. Of note, he highlighted that one should not let greed be the driver and do not rush into accepting privatization offers. Furthermore, remember to exercise your rights as a shareholder, and make informed decisions.
2. Why Regular Savings Plans (RSP) Makes Sense If You Are Starting Your Investment Journey In 2024 [Dollars And Sense]: This article suggests using a Dollar-Cost Averaging (DCA) investment strategy to protect against market volatility and reduce risk. This strategy can be done through RSP and investing in ETFs, which are professionally managed investment funds with a diversified basket of options.
3. Singapore Savings Bond: Latest interest rate and guide to investing [Yahoo]: MAS released information on SSB which is to be issued on 1 February 2024, with a tenor of 10 years and an allotment size is S$900 million. This has a total average return per year of 2.81%, with a first-year interest rate of 2.72%. Investment amounts start at and in multiples of S$500. Application is now open till 9PM, 26 January 2024.
4. Heroes to zeroes in 12 months: How the two biggest crypto billionaire CEOs proved the critics right [CNBC]: This article explains how the crypto reputation "has struggled to regain" even though prices swell. They deep dive into the two industry titans, FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao, who became convicted frauds.

Property / REITs

1. 2024 is shaping up to be a better year to invest in S-Reits [BT]: Is 2024 finally the year to consider Singapore-listed real estate investment trusts (S-Reits)? After being on a downward trajectory since end-2021, it has rebounded in recent weeks. Nonetheless, the sector is still trading "at a discount to its historic valuation", and could be an entry point for "bargain hunters". Investors should, however, recognize that there would still be some bumps in the recovery path ahead.
2. 7 Reasons Why You Should Own REITs [The Smart Investor]: Royston from The Smart Investor returns with a listicle detailing why REITs are an attractive income-generating asset class even though it was down in 2023. Interestingly, he also highlights five Singapore REITs that investors should consider in a report. You may download it via their website.

Islamic Finance

1. Funding Societies obtains investment from Khazanah, CGC Digital [BT]: Funding Societies plans to grow its coverage for its Islamic financing solutions, which has disbursed over S$28.8 million in Shariah-compliant financing in Malaysia since its launch in May 2023. Furthermore, the company also plans to expand its coverage in Malaysia to areas beyond KL, Selangor, Penang, and Johor, with the new investment.
2. A decade's journey: Mapping the Islamic economy & path ahead: While it has been a challenging decade, the global Islamic economy has been on an upward trend, reaching $2.29 trillion in 2023, at a growth rate of over 41%. The report predicts that in the next decade, the Islamic economy will be "an even bigger enabler of socio-economic prosperity", built on the success of the past.

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.

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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