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RE Discussions for Singapore Based NRIs

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RE Discussions for Singapore Based NRIs

Last updated: June 28 2020
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  • Re : RE Discussions for Singapore Based NRIs

    http://www.channelnewsasia.com/news/...s/3396660.html

    Comment


    • Re : RE Discussions for Singapore Based NRIs

      Yeah, I have been bearish on SGD for a while now:

      https://www.bloomberg.com/news/artic...nomies-diverge

      Comment


      • Re : RE Discussions for Singapore Based NRIs

        This thread seems to be dead. What are you guys planning to do with your SGD savings now, that INR has appreciated against all expectations? All my money earned until 2016 is now transferred to India. But for 2017 I am planning to accumulate money in Singapore. I am thinking BoC smart saver is a good option to earn upto 3.55% interest.

        Cheers!
        Last edited March 19 2017, 12:31 PM.

        Comment


        • Magadh_Pride
          Magadh_Pride commented
          Editing a comment
          Heard of 2 (Indian) families get their PR letters in last 2 weeks. .. Not sure if things are changing or just a fluke.

          I also heard the govt is favoring to convert existing EPs to PR if the wifes are employable than to get new EPs. So less and less newer EPs being approved now.

        • revhappy
          revhappy commented
          Editing a comment
          Definitely not a fluke. Nothing is fluke in Singapore. Everything is planned. There must be something unique about them that is desirable for the authorities.

        • Magadh_Pride
          Magadh_Pride commented
          Editing a comment
          Acc to website, strng sell for SGD. What do you think?

          Reliable recommendation?

          https://www.investing.com/currencies/sgd-inr

      • Re : RE Discussions for Singapore Based NRIs

        I am exploring ways to keep my money offshore though, without PR also, even if I move back to India.So far keeping money in India has worked well for me. But I fear in future with the ways things are going on in India, it is better to keep some money offshore.
        Last edited March 19 2017, 01:08 PM.

        Comment


        • Magadh_Pride
          Magadh_Pride commented
          Editing a comment
          What do you fear about India. I thought there is a period of nezt 7 years of political stability and good time for reforms which will trigger the economy ans markets

        • revhappy
          revhappy commented
          Editing a comment
          Actually political stability is what scares me the most. Now we have a situation where one man calls all the shots and he has the power to make masses believe that whatever he is doing is for the good of the people. For poor masses who have nothing to lose there is nothing to fear. But suddenly people who have money in India are looked at as bad people. So I would rather keep my money outside India.
          Last edited March 19 2017, 06:56 PM.

      • Re : RE Discussions for Singapore Based NRIs

        Your Dollar Earnings Have Started Losing its Sheen – NRI Special

        From as long as I can remember, most of us have been enamoured by the idea of working abroad. Apart for the good quality of life and social pride, there was always a sound economic logic of “earning in dollars” being superior than “earning in rupees.”

        Most of my friends started earning in US$ when every US$ would fetch you Rs. 45. Over the next six years, Indian currency steadily depreciated and every US$ would fetch Rs. 67 in 2014. As a result, their US$ savings increased by 7% every year in INR terms between 2007 and 2014 even if they let the money lie idle in their bank accounts. The economic logic of working outside India was vindicated!

        But something strange happened in the last six months. A coffee shop conversation with my US, UK and Singapore returned friends suggested that they were no longer feeling the pride of “earning in dollars”. I immediately checked my Bloomberg and realized that Indian Rupee had strengthened by 5% against all these major currencies. Infact my friends were feeling “poorer by 5%”. This gave me the topic for my current article “your dollar earnings won’t be as valuable in future”. I am no expert on currency and macro economics but I will make an earnest attempt to explain my thoughts on the topic.

        Why was Indian Currency so Weak over 2008 to 2014?

        The level of our currency depends on many factors but the two most critical factors are fiscal deficit and current account deficit. While these are esoteric sounding words, they are as simple as running a household budget.

        Fiscal deficit is the difference between what your government earns and what it spends. Like most governments in the world, Indian government too spends more than what it earns. During 2008 to 2014, the government spent huge money on populist measures – farm loan waiver, social schemes like MNREGA, subsidies on LPG, kerosene, fertilizer and oil, etc. However, government’s earnings (taxes) did not grow at a proportionate pace. As such, the government borrowed a lot of money from domestic market to fund its expenditures. All of us know that when you borrow a lot, your credit profile in the outside world goes down!

        Current account deficit is the difference between what India exports and what India imports. Historically, India spends a lot of money to import crude oil, gold and coal. Our imports have always been higher than exports, resulting in high demand for US$. The twin impact of high fiscal deficit and high current account deficit resulted in high demand for US$ and kept the Indian Rupee under pressure.

        Why is Rupee expected to get Stronger ( 60 to 65 levels for next 5 years)?

        Over the past three years, India seems to have solved both the above mentioned problems. In all my past emails, I have highlighted that the current government hadn’t done anything big bang (until demonetization) and instead chose to take small but concrete steps. The super strong macro economic position that India enjoys today is a culmination of all these small steps plus demonetization.

        Solving the fiscal deficit problem: India’s fiscal deficit has reduced by ~Rs. 1,50,000 crores over last two years because the current government is spending less and earning more! The current government has not announced any big bag populist policies to bring in votes. Instead, it has continued with the schemes announced by the previous government and worked very hard to make them more efficient.

        For example, Delhi consumed Kerosene worth ~Rs. 900 crores every year until 2016. We all know that Kerosene is a fuel used by poor people and hence, subsidized by the government. However, corruption in India was so rampant that 90% of the Kerosene sold in Delhi was used by petrol pump operators, small industries, etc to save their costs. The current government has used Aadhar card based Direct Benefit Transfer (DBT) to identify poor people and transfer subsidy directly into their bank accounts. As such, only genuine people now get the Kerosene subsidy and Delhi’s Kerosene consumption has dropped by 90%. Government has managed to save close to Rs. 500 crores in Kerosene subsidy in just one city, without impacting the poor. Similarly, government has cut down its subsidies on Oil, LPG and Kerosene and has ended up saving Rs. 74,000 crores per year. Not to mention, Narendra Modi’s mass appeal led the huge middle class to voluntarily give up LPG subsidy in a big way.

        On the revenue front, India’s tax collections grew at 18% in FY17, the highest in last seven years. No doubts that the windfall gains due to declining oil prices have helped, this government’s relentless focus on tax compliance has also helped (demonetization was one of the many steps in this direction).

        Solving the current account deficit problem: India imported huge quantities of oil, gold and coal. While lady luck played its role in reducing India’s import bill, the government systematically killed India’s appetite for physical gold by offering various financial products like gold bonds and ETFs. As such, India’s import bill has reduced by more than Rs. 400,000 crores or US$61bn! Thus, India needs far lesser US$ now than two years back. It’s only natural that Indian Rupee should become stronger.

        How can you benefit from this trend of strong rupee?

        If you are earning in US$, the chances of your salary hikes being higher than 4% are slim. In case you do not invest your money into equities, there is a good chance that your wealth is growing at merely 5% to 8%. While it’s not necessarily a bad thing, you can grow significantly higher if you chose to invest money in your home country’s stock market.

        The above mentioned changes in India’s macro economic situation are so formidable, that I would stick out my neck and say that India will be an “island of stability” for the next five years in an otherwise unstable world. Foreign Investors are queuing up for Indian stocks because of India’s stability, growth potential and improving transparency on back of reforms like GST and demonetization. They have invested US$40bn this year and this amount is enough to finance India’s entire current account deficit! Indians have started investing in equities because real estate is down, gold is static and bank FD rates are declining. In fact, foreign investors own 25% of India’s entire stock market, much larger than 15% owned by domestic mutual funds. It looks like foreigners have more confidence in India than Indians themselves. 

        We generally tend to over-estimate what we can achieve in the next two years but we massively under-estimate what we can achieve in the next ten years. I have reasons to believe that next 10 years will be golden years for India and its investors. Stock market is the easiest way to take part in this growth story and you may ignore it at your own peril. You may live and work anywhere in the world, but India should be the clear winner when it comes to your investments.

        Today’s article was dedicated to all NRIs. Feel free to share it with your NRI friends

        [Received via WhatsApp]

        Comment


        • Re : RE Discussions for Singapore Based NRIs

          http://economictimes.indiatimes.com/...w/56136288.cms
          Traders' favourite theme for 2017: Go long on rupee, short Singapore dollar

          Comment


          • Re : RE Discussions for Singapore Based NRIs

            Hi,
            Guys any suggestions about investing in property in Delhi/NCR. I have about 40-50 Lakhs disposable INR cash in my savings accounts in India. FD rates seem unattractive now. Burnt my fingers many times in stocks. Have lost close to 10 lakhs over last 8-10 years. Was thinking of purchasing a property in Dwarka/Noida/Gurgaon region. Any recommendations? Thanks

            Comment


            • Re : RE Discussions for Singapore Based NRIs

              Originally posted by Magadh_Pride View Post
              http://economictimes.indiatimes.com/...w/56136288.cms
              Traders' favourite theme for 2017: Go long on rupee, short Singapore dollar
              I think most of this trade has already been played out. SGDINR moved from 50 to 45, a 10% move. I dont think there is much more downside left for SGDINR. I could be wrong though. Currency markets are very unpredictable. All my savings until 2016 is now in India in INR. But 2017 onwards I have not yet remitted to India.

              Comment


              • Magadh_Pride
                Magadh_Pride commented
                Editing a comment
                This is the first article i have read about SGD/ KRW behaving differently to the USD vs INR

            • Re : RE Discussions for Singapore Based NRIs

              Originally posted by dr.abh View Post
              Hi,
              Guys any suggestions about investing in property in Delhi/NCR. I have about 40-50 Lakhs disposable INR cash in my savings accounts in India. FD rates seem unattractive now. Burnt my fingers many times in stocks. Have lost close to 10 lakhs over last 8-10 years. Was thinking of purchasing a property in Dwarka/Noida/Gurgaon region. Any recommendations? Thanks
              Yes FD rates are bad. But govt bonds are trading at above FD rates.
              https://www.bloomberg.com/quote/GIND10YR:IND

              You can invest in ultra short term bond funds and if rates spike up you can move to long duration bond funds. Hold for 3 years and income tax is very low.

              Comment


              • Magadh_Pride
                Magadh_Pride commented
                Editing a comment
                I the FD/bond rates are going to fall, is it not better to lock money into longer term bonds and benefit from capital gains ? Or GILT bonds?

              • revhappy
                revhappy commented
                Editing a comment
                Rates are also difficult to predict. But historically Emerging market rates cant go too low. India is having a dream run now so even 7% looks high, but tide can turn and then RBI will have raise rates fast.

            • Re : RE Discussions for Singapore Based NRIs

              Originally posted by dr.abh View Post
              Hi,
              Guys any suggestions about investing in property in Delhi/NCR. I have about 40-50 Lakhs disposable INR cash in my savings accounts in India. FD rates seem unattractive now. Burnt my fingers many times in stocks. Have lost close to 10 lakhs over last 8-10 years. Was thinking of purchasing a property in Dwarka/Noida/Gurgaon region. Any recommendations? Thanks
              http://dollarsandsense.sg/parents-ma...-may-not-work/

              Comment

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