The Switzerland of Asia Shines
In many respects, Singapore is the Switzerland of Asia.
Begun in 1819 as a British trading colony, the Republic of Singapore was founded in 1965 under the leadership of the current Prime Minister's father, Mr. Lee Kuan Yew. While it is only 1/5 the size of Rhode Island and three times the size of Washington D.C., it is perhaps the most strategically important global trading, finance and service nexus in Asia.
Here is why you should consider investing in Singapore.
While Hong Kong and Shanghai will argue, Singapore is the busiest port in Asia situated next to the vital trading channel, the Straits of Malacca.
Unlike South Korea and Taiwan, which are heavily dependent on the cyclical electronics industry, Singapore has a well-diversified economy. 70% of its GDP is attributable to finance and services.
Singapore's accounting rules and regulations are amongst the most conservative in the world. For example, its rules on inventory accounting and the expensing of stock options are more conservative than those in the United States.
Trade Surplus
Despite only 1.6% of its land being suitable for agricultural activities and having to import almost everything including water, Singapore manages to have a trade surplus.
Singapore has a balanced budget, a stable currency and still manages to allocate 5% of GDP for defense.
It represents a multi-ethnic society with 77% Chinese, 14% Malay and 8% Indian.
Singapore has a parliamentary form of government, an English common law judiciary system and is corruption and drug free. Slowly but surely, a freer political climate is developing with a Speaker's Corner instituted in 2000 and the ability to express one's views freely anywhere with the exception of the sensitive topics of race and religion
Singapore's educational performance is legendary. The fact that it has twice as many Internet users as television sets is telling.
Singapore's New Resorts
Singapore is also changing with the times. To generate more investment, tax revenue, and add a bit of sparkle, Singapore recently approved the development of two large casino resorts. It is part of a strategy to reduce the country's dependence on manufacturing and to position itself as a livelier tourism destination. Of course, there will be restrictions. Singaporeans will have to pay a $60 entry fee and the gambling areas will be restricted to just 5% of the resort. According to projections, the resorts will lead to $4 billion in investments, $3.5 billion in annual revenues, 35,000 jobs and $350 million per year in taxes and fees.
Singapore has also made great strides in patching up misunderstandings with its neighbor to the north, Malaysia, from whom it split in 1965. Tax issues, water supply agreements and transportation arrangements are all moving much more smoothly.
Singapore is adept at holding on to its manufacturing base even as several large semiconductor manufacturers such as National Semiconductor announced plans to move plants to China and Malaysia. For thirty years, Singapore has relied on electronics as the backbone of its manufacturing sector but is making the transition to a more service and R&D economy. Electronics is about 40% of manufacturing output but accounts for only 5% of employment. Surprisingly, some firms are moving manufacturing centers from China to Singapore due to its infrastructure, logistics and laws protecting intellectual property. Exxon Mobil, Shell and Sumitomo are expanding petrochemical facilities and Singapore added 27,000 manufacturing jobs last year by moving up the food chain.
After 8.4% GDP growth in 2004 and a weak start early this year, Singapore's economy posted 12% plus growth in the second quarter and should be a solid performer over the next few years. Continued strong global demand for transportation, communications and logistics services, increasing IT spending, rising consumer spending and property prices and expanded tourism all point to continued growth.
An easy and smart way to invest in Singapore is through the Singapore iShare (EWS) which tracks the Singapore Straits index. It is up 26% over the past year and up 9.4% year to date. Its largest positions are in Singapore Telecom, United Overseas Bank and DBS Bank. Even better, it is tax efficient and has an annual expense ratio of only 0.59%. Trading at 14 times projected earnings, the Singapore market is still attractive. By comparison, the Switzerland market and iShare (EWL) is trading at 18 times earnings.
The epitome of quality and increasingly creative, Singapore is a great core holding for any global portfolio.
Carl Delfeld is head of the global advisory firm Chartwell Partners and editor of the Chartwell Advisor and the Asia Investor Intelligence newsletters. He served on the executive board of the Asian Development Bank and is the author of The New Global Investor (iUniverse:2005). For more information go to www.chartwelladvisor.com or call 877-221-1496
Carl Delfeld is head of the global advisory firm Chartwell Partners and is editor of the "Chartwell Advisor" and the "Asia Investor Intelligence" newsletters. He served on the Executive Board of Directors of the Asian Development Bank in Manila and is the author of The New Global Investor (iUniverse: 2005). For more information go to http://www.chartwelladvisor.com or call 877-221-1496.
 Google News Updated : Fri, 05 Sep 2008 08:05:30 GMT Tropical Storm Hanna aiming for Massachusetts - Boston Globe
Boston Globe - By Andrew Ryan and Martin Finucane, Globe Staff Tropical Storm Hanna is expected to churn up the Atlantic coast and lash Massachusetts this weekend with winds gusting up to 50 mph near the coast and up to four inches of rain. Video: Hanna Nears US, but Stronger Ike Looms Area departments gearing up for Hanna's arrival Publ.Date : Fri, 05 Sep 2008 04:23:14 GMT UN warns of Haiti flooding crisis - BBC News
BBC News - Several hundred thousand people need help in Haiti, which is suffering severe flooding after being hit by a series of tropical storms, the UN says. Attempts to Aid Desperate Haitians Hindered by Floodwaters Storms line up to slam western Atlantic, southeastern US Publ.Date : Fri, 05 Sep 2008 07:05:26 GMT Kilpatrick's rise and fall - Detroit Free Press
Detroit Free Press - BY BILL McGRAW • FREE PRESS STAFF WRITER • September 5, 2008 Kwame Kilpatrick entered the mayor's office with extraordinary gifts -- charisma, savvy, flair, pedigree, connections, ambition and chutzpah -- everything a 31-year-old needed to make a ... Video: A Timeline of Detroit Mayor's Text Scandal Detroit’s Mayor Will Leave Office and Go to Jail Publ.Date : Fri, 05 Sep 2008 07:27:50 GMT Arthritis Drugs Linked to Risks From Infection - New York Times
New York Times - By AP WASHINGTON (AP) - The Food and Drug Administration ordered stronger warnings Thursday on four medications widely used to treat rheumatoid arthritis and other serious illnesses, saying they can raise the risk of possibly fatal fungal infections. Deaths Heighten Arthritis Drugs Warning Nation Digest 4 arthritis drugs get tougher warnings Publ.Date : Fri, 05 Sep 2008 01:38:34 GMT Jesse Jackson hospitalized for stomach pains - Chicago Tribune
Chicago Tribune - By Jeremy Gorner | Chicago Tribune reporter Rev. Jesse Jackson was being treated Thursday in Northwestern Memorial Hospital in Chicago after falling ill. Video: Rev. Jesse Jackson Hospitalized Jesse Jackson hospitalized after stomach pains Publ.Date : Fri, 05 Sep 2008 07:00:48 GMT Stocks: A Terrible Thursday - BusinessWeek
BusinessWeek - Major US indexes each tumbled nearly 3% as worries intensified over the health of the economy. All eyes are on Friday's jobs report Market players were probably wondering Thursday why they bothered to come back from their summer vacations. Stocks Are Broadly Lower Tracking Falls on Wall Street Stocks slide on economic worries Publ.Date : Fri, 05 Sep 2008 05:53:27 GMT House committee widens probe of Vytorin safety - International Herald Tribune
International Herald Tribune - AP TRENTON, NJ: A House committee investigating the safety and effectiveness of the popular cholesterol drug Vytorin and one of its components is turning up the heat on the drug's makers. Many Questions About Vytorin Drug Scare Shenanigans Publ.Date : Fri, 05 Sep 2008 00:32:18 GMT Work From Home |
PARLOT::Ebooks, Scripts,
Websites, and more... Non-indexed mutual funds try to keep it secret that actively... Read More Expectations drive the market. Every stock price is driven by... Read More You hear it over and over and over in books,... Read More One among many ways you lose money in non-indexed mutual... Read More Do you think you need an Investment Advisor? Hold on... Read More Okay, so I can tell you I have sat in... Read More Recently, my family and I took a trip to Maine... Read More As an expatriate you are in a privileged savings and... Read More Going public in this manner is ideal for companies that... Read More Pre-1933 Gold Outperforms Today's Gold Bullion...Since 1970, an investment strategy... Read More More and more workers are leaving their jobs and taking... Read More Have you ever noticed how some words in the English... Read More What are Bonds?A bond is a debt security, by which... Read More Several days ago, the Commerce Department reported that May's factory... Read More Those unfamiliar with the process of making and managing investments... Read More It is important to answer the following questions before you... Read More You all know what CYA stands for. Of course, Cover... Read More The Value of Gold in a Era of Paper Assets,... Read More Options are good investing and speculative instruments. But options terminology... Read More In 1519, Hernando Cortes, beached on the shores of unexplored... Read More For better or worse, most option trading investors purchase stocks... Read More To understand stock options, we need to look at Webster’s... Read More You wouldn't build your home on anything less than a... Read More Unfortunately, many investors who are seduced by the lure of... Read More Before every protective put trade it is possible to calculate... Read More
Adsense
websites
Mutual Fund Selection Made Simple By Indexing!
Global Markets: A Window on the World Economy
Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did
Caveat Emptor: You May Owe Taxes Despite 401(K) Losses!
How To Find An Investment Advisor
Can Your Annuity Do This?
Lobster Trapping for Investment Ideas
Investing Offshore for Retirement
Raising Capital Using a Public Company
Why You Need To Buy and Sell Gold Coins (Part 6)
Making Every Penny Count
A Gadfly On A Dinosaurs Butt, Or The Hood-winking Of The American Investor
Pros & Cons of Investing in Bonds
The Economy Is Not The Stock Market
Everybody Wants to Know How to Invest
Before You Invest You Must Read This
CYA
Why You Need To Buy and Sell Gold Coins (Part 1)
Basic Options Terms
Investing for Retirement - Not an All or Nothing Play
Powerful Hidden Techniques Mystery Formula - The Covered Call Option Trading Buy-Write Strategy
Secret Stock Options Trading Strategies the Experts Don`t Want You to Know
Building The Foundation For Wealth
When NOT to Invest
Part II of Day Traders and Swing Traders and Options? Maybe!
Affordable and Reliable Web Hosting Starting at $4.49/Month
Larry, Moe and Curley, Investment Brokers
Larry, Moe and Curley were sitting in their favorite restaurant... Read More
Missleading Fund Names Wreak Havoc On Investor Returns!
Mutual fund managers use fake fund names to part you... Read More
Why have Investment Plans for the Stock Market
If you do not have an investment plan in the... Read More
Trading Tips No 7: Developing a Casino Mentality for the Day Trader
I submit that the successful day trader would profit well... Read More
Planning for Retirement
Almost without exception, people don't start planning for their retirement... Read More
Inflation Proof Your Investment Portfolio with ETF?s
Even though inflation has been relatively quiet in the U.S.... Read More
Basic Options Terms
Options are good investing and speculative instruments. But options terminology... Read More
Asset Allocation Lessons: The 70% Inflation Solution
For investors only... and for speculators who need to invest... Read More
The Perfect Economy?
The U.S. economic data reported this week showed strong output... Read More
Should You Put Your Annuity in an IRA?
Let me start by answering that question...if an annuity fits... Read More
Your Portfolio and ?Old Ironsides?
The USS Constitution first ventured into the waters in 1798.... Read More
Success Trading: More Basic Terminology for New Traders
One important aspect of trading the markets is to understand... Read More
The Arrow-Debreu Contingent Claims Model of Investment
Throughout the discussion of speculation and stability, we emphasized that... Read More
A Gadfly On A Dinosaurs Butt, Or The Hood-winking Of The American Investor
Have you ever noticed how some words in the English... Read More
New U.S. Mint Coins a Golden Opportunity
In April, the U.S. Mint revealed plans to strike in... Read More
Planning Starts with the Basics
When developing a plan for your finances, the toughest question... Read More
Expand Your Pool of Investors for Your Company
If you own a company that sells complicated products and... Read More
Rolling your 401k: Contributory IRA vs. Rollover IRA
In an ideal world you would start your working career... Read More
Retirement is Never Urgent Until
If you're like many people, your retirement savings have not... Read More
Tyranosaurus Rex
Everyone knows T Rex was the most fearsome of all... Read More
What My Horse Had For Breakfast
Let's see, he had some oats, fresh alfalfa and his... Read More
Critical Investors Business Daily Responsibilities - If not Followed Could Cost You Millions!
When thinking about the investors business daily responsibilities in today’s... Read More
Time is Money and We Are Running Out of Both!
One of the fundamental principles of finance is the concept... Read More
Why the Rich Keep Getting Richer
Rich people: fortunate, lucky, selfish, and arrogant? Or highly educated,... Read More
Do You Need A Financial Planner?
No matter how much money you make, it pays to... Read More
Investing |