SINGAPORE: Lawyer M Ravi has been handed four charges after he reportedly slapped a woman last Friday (Sept 15) at a Hindu temple.
Mr Ravi is also said to have used indecent language and shouted vulgarities during the incident at around noon on Sept 15 at Sri Mariamman Temple at South Bridge Road, The Straits Times reported.
The following day, the lawyer was handed the following charges: voluntarily causing hurt, disorderly behaviour in public and two charges under the Protection from Harassment Act.
During the incident, Mr Ravi is said to have also called another woman who was at the temple a prostitute, intending to cause her harassment, ST added.
But previous to that, he was reported to have used abusive words towards a man in Pagoda Street, shouting vulgarity in Tamil at him, also with the intent to cause harassment.
Earlier this year, Mr Ravi received a five-year suspension for making “baseless and grave” allegations against the Attorney-General, prosecutors and the Law Society.
He will be back in court on Sept 29, having been remanded at the Institute of Mental Health for a medical examination on Sept 16.
Two months ago, he is said to have slapped a man near Yio Chu Kang MRT station and has two other pending charges from that incident.
Mr Ravi could be fined up to S$1,000 and jailed for a month if convicted of disorderly behaviour in public. Repeat offenders face double the fine, up to six months’ jail, or both.
Anyone guilty of voluntarily causing hurt can be fined up to S$5,000, jailed for up to three years, or both jailed and fined.
The penalty for intending to cause harassment by using abusive words is up to $S5,000 fine, up to six months’ jail, or both, under the Protection from Harassment Act. /TISG
SINGAPORE: Speaker of Parliament Seah Kian Peng ruled on Monday (Sep 19) that MP Murali Pillai did not “impute any improper motives” to Progress Singapore Party Non-Constituency MP Leong Mun Wai. On the complaint filed against Dr Vivian Balakrishnan, Mr Seah noted that Mr Leong filed the complaint two years after the event and said that “the complaint is out of time”.
Mr Leong filed a formal complaint with Mr Seah on Wednesday (Aug 16) over statements made by Mr Murali Pillai in Parliament earlier in the month.
Progress Singapore Party’s (PSP) secretary general Mr Leong, said that the Hansard for the debate on the Lease Agreements for Retail Premises Bill during the parliamentary sitting on 3 August 2023 shows that Mr Murali appears to have said that “[t]he hon Non-Constituency Member of Parliament Mr Leong Mun Wai had advocated some form of low-rent control”.
“This statement imputed improper motives to me as he had claimed I was advocating for rent control when I had not made any such statement during the debate.
Subsequently, when I rose to clarify this statement with Mr Murali, he appears to have stated three times that he did not assert that I had advocated ‘some form of low-rent control’ in my speech, despite expressly doing so earlier in his statement, and refused to retract said statement”, Mr Leong wrote on Facebook.
He added that Mr Murali’s clarifications “confused the public and created the misleading impression that I was accusing Mr Murali of claiming that I was advocating for rent control when he did not”.
Mr Seah’s verdict
“The words ‘improper motives’ imply something illegal, dishonest or morally wrong. I have perused the relevant speeches recorded in Hansard, and I find that the rent control statement does not suggest or impute any improper motive on the part of Mr Leong,” he continued.
“Both Mr Leong and Mr Murali had differing views of what each meant when they referred to rent control. But that is the nature of parliamentary exchanges and debates,” said Mr Seah.
Mr Leong raised his hand to speak after Mr Seah. The Speaker stressed that his decision on any complaint was final and not open to any appeals, but said he would make an exception and invited Mr Leong to make his clarification.
Mr Leong then asked if he could direct his question to Mr Murali, and Mr Seah replied that he was not reopening the debate. “Can I clarify that you also agree that rent control was never said by me?” Mr Leong then asked Mr Seah.
The Speaker did not address Mr Leong’s question directly. He said: “As I have stated, I am not reopening the debate. I’ve set out the context of the matter, and I’ve made my decision on the complaint that you have registered. I will not repeat myself. If you’re asking me for my personal decision, that is my personal decision.”
Mr Leong had also filed a second complaint – against Foreign Affairs Vivian Balakrishnan over a comment caught on a hot mic on Sep 14, 2021.
During the sitting, ministers were caught making private comments heard over the microphone criticizing Non-Constituency MP Leong Mun Wai and questioning how he got into Raffles Institution (RI).
After Mr Leong had spoken on jobs and livelihoods, a voice was heard saying “he’s illiterate” towards the Progress Singapore Party NCMP.
At a later exchange between Manpower Minister Tan See Leng and Mr Leong, another voice was heard over the microphone saying, “Seriously, how did he get into RI?… Must have been a lousy school.”
Mr Seah noted that Mr Leong filed the complaint two years after the event but called for Dr Balakrishnan to formally withdraw his remarks and put his apology on record in Parliament.
A copy of Mr Leong’s complaint was shared with Dr Balakrishnan, who in turn responded in a letter on Sep 5, said Mr Seah.
“In my opinion, the complaint is out of time, by reason of the long passage of time. It was not made at the earliest opportunity as required under Standing Order 100 (7c), after the member had noticed the alleged remark,” he added.
There is no formal action for the Speaker to take in his complaint, given that the matter had been concluded with Dr Balakrishnan’s apology and Mr Leong’s acceptance of the apology, said Mr Seah.
In his Sep 5 letter, Dr Balakrishnan accepted that his private remarks were inappropriate and that he stands by his previous apology. His letter will be published in Hansard and kept on parliamentary record, said Mr Seah. /TISG
SINGAPORE: A woman who ordered cai png (economy rice) “felt scammed” when she was “strangely charged” $10.10. She shared on Reddit: “I was charge $10.1 for above cai png at commonwealth mrt stn Kou Fu. I immediately felt scammed. But what happened next was just mind-boggling.”
Sharing what happened when she asked the aunty about the price, she added: “Upon questioning, the aunty told me that fried rice costs $2, the two veggie costs $1.7 each, the kung pao chicken costs $2 and the pork with tau pok costs $4, which adds up to $11.4. So at this point i feel the aunty is just anyhow inflating the price of each dish so she can justify charging me the insane amount.”
Stunned by what happened, she asked Redditors: “Do you guys also encounter this? Who can I talk to about this strange behaviour? I didn’t see any contact number on the stall itself.”
User Aromatic_Map6167 shared his honest thoughts about food pricing, saying, “Honestly, the term economical rice is no longer economical unless you take simple veg or meat dishes like cai xing and sweet & sour pork. Gone are the days where it is reasonable, esp in food courts. You want cheap economical rice? Go hdb estates instead of food courts. I do not eat at food courts if I have a choice as it is more pricey and less value for money.”
Another user explained why food stalls today are ‘more profit oriented’: “Most stalls, especially in foodcourts, are no longer owned by ‘hawkers’ who operate and earn from their own stall. They are owned by food operators who manage a large number of stalls – like Chang Chen for economical rice. The old hawkers can serve food at low and depressed prices because they don’t price their labour well, but these food operators are lot more profit oriented + you are now paying for both the towkay salary and the caifan cooks salary. And of course rent is another issue.”
User rustyleak jokingly added, “No longer economical rice. More like astronomical rice.”
In an era when “economical rice” seems to be losing its affordability, this situation sheds light on the growing economic concerns of consumers in Singapore.
SINGAPORE: A credit card newbie on Reddit ‘thinking of getting a credit card’ asked for some advice about credit cards with no annual fees.
She started the post by sharing about herself, saying, “Hi just a little background about myself, this is my first time planning on getting a CC. Have always never needed it as I always used my debit card. Recently I was advised by a senior to get a CC to start building on my credit score.”
She added, “I’m not a big spender typically only spend money on food, groceries and maybe travel overseas 3-5 times a year. (excl JB). As this will be my first time with a CC, I would like to get advise from the people of reddit on which card suits me the best. (of course I have done my due diligence by doing my own research and checking with my fellow colleagues and friends.)”
Concerned about annual fees, she continued, “Also I believe there are annual fees for credit cards. How does the annual fee work? can it be waived if lets say I didnt use the card? Are there CCs that do not have annual fees?”
A user shared: “Our “credit score” doesn’t work the same way like what the Americans stuff you see online. So long as you pay off your credit card bills every month diligently, nothing else to worry about. Easiest for you are the no annual fee ones. Couple of them out there.”
Another shared explaining annual fees: “Annual fees are usually charged after the first 1 or 2 years. But most banks waive the annual fee as long as you’ve spent on the card regularly. They don’t disclose how much, but on a regular card (i.e. not some special atas CC for high rollers), a few hundred monthly should suffice.”
Every_Put6120 asked, “Singapore got credit score?” answered by another user with “Yes have.”
shadstrife123 shared, “HSBC revolution is one that comes to mind”.
The Redditor who posted answered, “I was considering this earlier just because of no annual fee.”
She added, “Is my understanding correct for interest on purchase – If I dont make full payment, I’ll be charged with this?”
JulSGP answered, “As long you dont pay the statement amount by full before due date, you will be slapped with late interest fee and whatever unpaid amount will keep rolling to next statement. In short, ALWAYS pay in full and you will have nothing to worry about.”
To assist credit card newcomers like the Reddit user seeking cards with waived annual fees, let’s check out some beginner-friendly credit card options.
4 credit cards with no annual fees
For newcomers, choosing a credit card can be overwhelming. Here are four options you can check out:
CIMB credit cards
CIMB Bank offers credit cards with no annual fees.
All three CIMB credit cards (CIMB Visa Signature Card, CIMB World Mastercard, CIMB Visa Infinite Card) are free for life.
Minimum spend requirements vary based on the card.
SingSaver promotion: New cardholders can receive an Apple iPad 9th Gen 10.2″ WiFi 64GB (worth S$503.65) or S$320 Upsized Cash via PayNow when spending at least S$988 for 60-day periods following card approval. Valid till 1 Oct 2023. T&Cs apply.
HSBC Revolution Card
The HSBC Revolution Card is a popular choice with no annual fees.
Ideal for both seasoned miles enthusiasts and beginners.
Earn up to 4 miles per S$1 on online and mobile contactless transactions.
Eligible categories include travel, shopping, groceries, and dining.
Enjoy the 4-mile rate, with a monthly cap of S$1,000 spending.
After reaching the cap, it reverts to a base rate of 0.4 miles per S$1.
Say goodbye to the stress of earning miles.
Standard Chartered Smart Card
The Standard Chartered Smart Card offers no annual fees.
SingSaver offer: Receive an Apple AirPods Gen 3 (worth S$271.50) or up to S$270 SUPER Upsized Cash via PayNow when you apply and spend at least S$250 within 30 days of card approval. Valid till 21 September 2023. T&Cs apply.
An additional $20 Bonus Cash is available for select merchants.
Bonus Cash Details:
Get an extra $20 Bonus Cash by adding your card to select merchants within 30 days of card approval.
Participating merchants include Shopee, Lazada, Taobao, EzBuy, Qoo10, Carousell, and Netflix.
UOB EVOL Card
UOB EVOL Card has no annual fees.
Lower minimum monthly spend of S$600.
Annual fee waiver with just three qualifying transactions per month.
Welcome gift: New UOB credit card members can enjoy a welcome gift of S$500 worth of Grab vouchers. To qualify, all you need to do is make a minimum spend of S$1,000 per month for two consecutive months, starting from the card approval date, and don’t forget to complete SMS enrolment. This welcome offer is valid until 31 October 2023, so seize the opportunity to grab these fantastic rewards. T&Cs apply.
SingSaver offer: When you apply for select UOB credit cards and meet the minimum spend requirements, you can choose to receive S$350 cash credit, S$500 worth of Grab vouchers, or up to 50,000 miles. T&Cs apply.
Check out the credit card card that fits your needs and preferences.
SINGAPORE: A netizen shared her experience on Reddit about a bus driver she seemed to find super nice. u/REcommendationLazy16 stated in u/askSingapore: “I’ve recently started taking this bus ride to work everyday! I take bus 656 and my driver is just SUPER nice, he always says hi when I see him in the morning and I take the same bus once I’m off work at 6…”
She then asked if giving the bus driver a present would be okay. “If it is acceptable, do let me know any suggestions,” she asked. Reddit users advised her to show her appreciation to the bus driver through the bus service provider.
“Submit an official letter of appreciation to the bus service provider! I think that would really help with visibility on his performance, and that affects employer’s review. And yeah, keep up with greeting him back during your journeys. I think a simple card with your appreciation is a safe choice,” a Reddit user commented.
In a similar comment, another Reddit user said: “Get him a pay raise / voucher / commendation by writing in an email to the company. Maybe attach a selfie you take with the driver, this will really help him. Others suggested possible gifts to give to the bus driver.”
One user mentioned: “I’m sure something small and harmless like a card will be fine. I think they aren’t supposed to take gifts from passengers (don’t quote me), but if it’s just that I reckon nobody will mind.Or if you want to be absolutely safe, a sincere verbal message would also be a nice gift.”
“Give him drink or snack. 👍” another user suggested.
“It’s fine to gift something to the bus captain. Plenty of people do that and there’s no regulation against it,” one more user commented.
How do you chill out on weekends? Catch the bus or the MRT to go shopping, meet friends, or just lazing around the house? In other news, a Singaporean Redditor asked: ‘How do you spend your weekends winding down?‘
SINGAPORE: A Reddit user who made a mistake at work asked fellow Singaporeans for advice on handling setbacks.
u/bono5361 shared in r/askSingapore: “I scheduled a meeting with a guy that my manager explicitly asked me just a day back not to meet because our company’s management has an issue with their company. (I) forgot about it the next day and proceeded to do exactly what he told me not to do (in my defense I was overloaded with so much info)”. He added that things did not end well, and his usually calm manager became very unhappy.
“He’s always gone to bat for me but I’m worried now. I’ve been feeling pretty useless and stupid the entire day,” he admitted.
Other people gave their insights and suggestions in the comments section, assuring him that mistakes are okay and that he can learn a lesson from what happened.
One user stated: “Take a breather it will work itself out, I bummed myself out on such occasions as well. You will tide through it just fine.”
Another user remarked: “Everyone makes mistakes and it’s ok, mistakes are necessary for us to learn. Don’t beat yourself up. One mistake out of the many other times you’ve got the job well done is not a fair way to judge yourself. It will be ok. This too, shall pass!”
One said: “I’m sure other parts of your work can make up for one mistake. You’ll stop thinking about it after a few days”.
Another commented: “Your manager is a big boy and will get over it. A good manager will reflect on why their staff made such a mistake and look into improving the process instead of throwing the staff under the bus,” and “Id apologise to show your manager you know youre wrong, but then dont give a fk about anything else. Youve done what you can, let the whole thing tide over by itself.”
In a similar post, a Reddit user asked about the current struggles of a Singaporean adult. The user stated: “Life is not smooth sailing as we expected, what are some challenges you face as a Singaporean adult?”
SINGAPORE: In the heart of Lion City’s ongoing economic discourse, a Reddit post has sparked a heated discussion about Singapore’s proposed minimum wage. The post centres around a recent report by the Lee Kuan Yew School of Public Policy recommending a monthly minimum wage of $2,906 for selected job sectors. This proposal has sparked a range of opinions and concerns.
The Reddit user said: “With a recent report recommending that Singapore sets a minimum wage of $2,906 a month for every single job sector (currently only selected sectors are under the PWM), how would it affect the cost of our goods?”
With more questions about S’pore’s proposed minimum wage, he asked: “If the minimum wage is higher than what diploma holders are earning on average, does that incentivise people to cut their educational journey short? Or would it have a positive impact on the wages of diploma and above holders? How would it affect the prices of our basic necessities and food (especially our unique hawker fare)?”
Curious, he added: “The paper and their website clearly mentions $2,906 as a reasonable starting point for a liveable wage for singapore many times. Please correct me if “liveable wage” is something totally different from “minimum wage”. (In the 2023 paper they actually revised it to $2,990 to account for inflation).”
User Inner-Patience answered, “Excuse me. Nowhere in the paper it says to set a minimum wage of $2,906, or any number.”
DuhMightyBeanz added, “This will never happen in Singapore because cost on business will be too great lol. Pro business, anti employee.”
Talking more specifically about jobs and the impact of the minimum wage mandate, another user added: “The first thing that comes to mind is a lot more families will make do without helpers and a lot more helpers will not have jobs. Some people think that everyone’s wage automatically goes up with a mandated minimum wage. But it really doesn’t work that way. Jobs are worth what they are worth. If a job is worth $1500, it will either pay $1500 or it won’t exist.”
Talking about the difference between “livable wage” and “minimum wage”, another user shared, “Prob need to differentiate between universal basic income and minimum/living wage.”
DuePomegranate said: “This article is clearly about the government objecting to the researchers’ number of $2,906 being a reasonable minimum income.”
Citing the article, she said: “The government’s proposed number is much lower: ‘Our own analysis suggests that the proposed monthly minimum income standard budget of around S$1,680 per capita is similar to the average monthly expenditure of $1,650 per capita for all families with children, rather than reflecting a more basic set of needs,’ they added.
Worried about inflation, she added: “$2906 is plainly ridiculous. Who is going to work F&B and cleaning jobs? Open up and let all the Malaysians take over these jobs? At least 50% inflation will occur in a year.”
Another responded, saying, “$2906 is basically more than 95% of poly grad’s starting pay. Imagine being able to earn that much without going to poly. I wouldn’t waste my time in tertiary education.”
The Lee Kuan School of Public Policy report on minimum household income required amid inflation “may not be an accurate reflection of basic needs”, and its findings should be interpreted instead as “what individuals would like to have”, the Government said on Sept 14.
In a joint statement, the Finance Ministry (MOF), Manpower Ministry (MOM) and Ministry of Social and Family Development (MSF) pointed out that the report included expenditure on items such as jewellery, perfumes and overseas holidays to calculate minimum income standards.
The ministries said they supported ensuring lower-wage workers earned decent wages.
But “a universal wage floor is not necessarily the best way to achieve this”, they added.
The ministries noted that the progressive wage model (PWM) for increasing wages as workers upgrade skills and improve productivity had been extended to more sectors such as retail, food services and waste management.
PWM wages for retail workers will increase by more than 8 per cent a year from 2023 to 2025, while those for most cleaners will increase by over 10 per cent annually from 2023 to 2028.
SINGAPORE: Ferrari’s Carlos Sainz may have won the 2023 Singapore Grand Prix, but according to a survey done by YouGov, Lewis Hamilton of the Mercedes team is ranked among the most popular F1 drivers in Singapore. The night race attracted 264,108 spectators in attendance across the three-day event. Despite a slightly lower turnout than the previous year, it has exceeded the organiser’s expectation of 250,000 attendance for this year due to the closure of The Float at Marina Bay.
It was Carlos Sainz’s first win at the Formula One Singapore Airlines Grand Prix, marking his second career victory following his maiden podium finish at the British Grand Prix last year. Prior to Sainz’s triumph, Ferrari’s last win in Singapore was achieved by Sebastian Vettel back in 2019. The retired F1 driver, Vettel, enjoyed considerable success at the Singapore Grand Prix, clinching five titles in 2011, 2012, 2013, 2015, and 2019.
Photo: Facebook screengrab / F1NightRace
It may not be surprising that those surveyed would have a better knowledge of Hamilton compared to other F1 drivers, such as Vettel, who has won more championships in Singapore. Hamilton still competed in the F1 circuits and had a respectable performance in Singapore. The British driver Hamilton had won four championships in the Singapore Grand Prix in 2009, 2014, 2017, and 2018.
Photo credit: YouGov
The survey also revealed other data, such as that more than one-third, or 36%, of Singapore residents follow the F1 race. It was also found that the highest percentage of F1 followers, 41%, lies within the Gen X demographic. Furthermore, the survey uncovered that men, across all generations but particularly among Gen Z, are more inclined to watch the F1.
Overall, the survey presents interesting findings that highlight the popularity of the F1 race among Singapore residents. Notably, it showcases the strong support from the Gen X group, suggesting that this generation has a significant affinity for the sport. The data also underscores the gender differences, indicating that men, especially those in the Gen Z cohort, display a greater interest in F1.
Photo credit: YouGov
Only about a third, or 32%, of those surveyed prefer to watch the Singapore Grand Prix on-site, and 18% revealed that they will attend the race in person for the first time this year. For those going to the F1 race, about three in five or 59% of them, said that this would be an opportunity for them to catch up with friends to watch the race together, while 57% say that they enjoy a trackside view of the race.
About half (49%) of racegoers also cite being a fan of one or more F1 drivers who will be competing in this year’s edition as one of the reasons they are getting tickets, while two in five (39%) point to being a fan of one or more artistes who will be performing at this year’s entertainment lineup.
SINGAPORE: Carlos Sainz wins the 2023 Singapore Grand Prix, and the Reddit community has been buzzing with reactions to his impressive victory as one user yum122 said: “What a mega drive from Sainz – “On purpose”…”
Pointing out Sainz’s potential, chanaandeler_bong added, “Good. Sometimes people need to know that you’re amazing, not just lucky. People view him as a middling driver but he’s moved himself into that upper tier. Just below the elite.”
rokerroker45 commented on yum122’s ‘just below the elite’ comment: “I think if his brain gets him to the results just as easily as mechanical driver skill gets Leclerc to his, he can be considered elite. Really just a matter of establishing the results.”
One user pointed out the ‘teamwork’ of Sainz and Lando saying, “Brilliant by Sainz and Lando. They straight up teamed up there haha.”
User SacZor agreed: “Sainz giving Lando DRS was genius, I feel like Mercs would’ve overtaken both of them without it.”
Another commented, saying, “Sainz giving DRS and Norris first defense. Those were decisive for them keeping P1-P2.”
With much respect and admiration for Sainz, user lazygeekninjaturtle added, “Mad Respect for Sainz. He decides his own strategy, he didn’t leave anything to Ferrari.”
Pointing out Sainz’s strengths in racing, someone added: “This is why Sainz is actually one of the best drivers on the grid. Not always fastest but brilliant race management skills. Seems to be better suited to the Ferrari finally as well.”
While everyone was amazed by Sainz for how he won, user mayjaz43 pointed out another: “I might be biased but if Ham was the one going after Lando and Carlos, we might have had him win. Russell couldn’t handle the clutch moments.”
SacZor agreed saying, “Definitely looked like Russell slowed him down a bit after they caught up to Lando.”
Another pointed out Ham losing time at the pits, saying, “Don’t forget Ham lost time in the pits too because of the double stack. Man would’ve had a chance I think.”
Redditor slimkay talking about Sainz noted, “Smooth operator. Amazing race management by SAI/Ferrari.”
Carlos Sainz’s victory at the 2023 Singapore Grand Prix has not only earned him admiration from the Reddit community but also highlighted his exceptional race management skills and strategic prowess, positioning him firmly among the Formula 1 elite.
Investing in bonds like the Singapore Savings Bonds (SSB) has historically been a preferred option amongst investors who want to diversify their investment portfolios and make passive income.
However, in the past few years, such fixed-income products witnessed a decline in popularity due to lowered interest rates intended to combat the economic challenges posed by the COVID-19 pandemic. At the same time, inflation concerns eroded the advantages of such investments because they no longer offered returns that kept pace with the increasing cost of living.
During times of economic uncertainty, investors wondering how to make passive income in Singapore were also leaning in favour of higher-risk asset classes like stocks and cryptocurrencies in the hope of growing their funds at a faster pace as opposed to investing in bonds that generally yield lower returns.
As the pandemic becomes a thing of the past, inflation showing signs of easing off and interest rates increasing with several Fed rate hikes, the bond market seems to have bounced back with higher yields.
Is it time to invest in bonds? Here are both pros and cons to help you decide.
The United States (US) Fed interest rate has been rising since 2022 from near zero percent to 5.25 percent in July 2023. This means that if you invest in bonds for portfolio diversification at the time of writing, the returns can be fairly decent compared to the pandemic period. This is because bonds are particularly sensitive to interest rate changes. When the Fed increases rates, the market prices of existing bonds immediately decline and the yields on new fixed-rate bonds increase. According to the US Department of the Treasury, the yield on the bond market’s benchmark 10-year U.S. Treasury note has even reached its highest level since 2007.
High-quality bonds like Singapore Savings Bonds (SSB) are more likely to offer solid returns amidst economic uncertainties and at times outperform stocks. Unlike these bonds, stocks are heavily impacted by market pressure, corporate earnings and can experience dramatic fluctuation even within short periods of time.
Let’s take the Bloomberg US Corporate High-Yield Bond Index as an example. The Index offers an attractive average yield of about 8.5 percent and based on historical data as far back as 1990, the Index sustained an average yield of between 8 and 10 percent for a total of 96 months and only 13 times of negative returns over the subsequent 12 months during the 2008 financial crisis.
However, it is good to note that successful bond investment lies in choosing high-quality and investment-grade bonds. If you are a Singapore investor wondering how to make passive income, investing in bonds may be a sound option, but only if you choose those that are able to ride out the ups and downs until they reach their maturity.
While there are bonds that present high yields that are rarely seen over the last 10 years, you must still exercise caution when selecting a fixed-income product. As with any investment products, there remains a chance for risk to arise when investing in bonds. For example, bond issuers may default or periods of negative returns akin to the Bloomberg US Corporate High-Yield Bond Index’s 12-month low can also occur to any bond.
Before you jump into the bond investment, be sure to focus only on high quality bonds with high liquidity. Investing in high-yield bonds may offer nice returns but these products are rated sub-investment-grade credit (BB+ or below) by Standard and Poor’s (S&P) and Ba1 (or below) by Moody’s. They are more likely to default and expose you to higher risk.
If the current bond market is getting you excited to explore more, here are a few quick tips that can help you get started.
Understand the Bond’s Rating
The rating offers a glimpse into the creditworthiness of the product. High-yield bonds are often given BB+ or below ratings while high-quality bonds like Singapore Savings Bonds (SSB) are rated AAA by Moody’s, S&P and Fitch. Any bond rated C or below is considered a low quality or junk bond and has the highest risk of default. When you understand the ratings, you can easily assess which bonds are worth your investment and resonate with your risk tolerance.
Consider Macroeconomic Risks
Rising inflation and interest rates pose risks for bonds. Interest rate risks may arise if rates change before the bonds reach their maturity date. However, it may not be easy to time the market or predict how interest rates may fluctuate with time. What may work to your favour in the long run is selecting high-quality bonds that match your portfolio diversification strategy and support your broader investment objectives.
Read the Prospectus Carefully
A prospectus is an important legal document that provides you with the full detail of the bond you are buying. This is where you will gather information about a company’s investment philosophy and risks associated with the investment you are about to make. In addition, check out the prospectus to clearly understand the bond’s maturity date and penalty clauses that may affect your investment value should you decide to withdraw the sum before expiry.
Related:
The Singapore Government’s credit rating by Moody’s, S&P, Fitch and R&I are Aaa, AAA, AAA and AAA respectively, and that simply means SBOCT23 GX23100T is a high-quality bond that is low risk and offers stable returns.
For those wondering how to make passive income in Singapore without having to go through much hassle, this 10-year bond is easy to invest in. All you need is a local bank account (DBS/POSB, OCBC, UOB) and a Central Depository (CDP) account that is linked to the local bank account. You can also invest using cash or the Supplementary Retirement Scheme (SRS).
SPDR Portfolio Short-Term Corporate Bond ETF (SPSB)
This bond tracks the performance of the Bloomberg U.S. 1-3 Year Corporate Bond Index. The fund offers exposure to U.S. corporate bonds with maturities between one and three years. The index includes investment grade, fixed rate, taxable, US dollar denominated debt with US$300 million of par outstanding, and is market cap-weighted and reconstituted on the last business day of the month.
10-year Treasury Note
The 10-year T-note is the most widely tracked government debt instrument in finance. Its yield is often used as a benchmark for other interest rates, like those on mortgages and corporate debt. This bond is considered one of the safest in the world. The treasury yields are closely tied to the federal funds rate, so they should continue to move higher if the Federal Reserve keeps raising rates.
Vanguard Intermediate-Term Treasury ETF
Vanguard Intermediate-Term Treasury ETF seeks to track the performance of a market-weighted Treasury index with an intermediate-term dollar-weighted average maturity. With more than 100 Treasury bonds within the funds, this is a high-quality bond which is low risk and offers an opportunity for capital appreciation.
iShares TIPS Bond ETF
The iShares TIPS Bond ETF protects you from inflation. The fund tracks the investment results of an index composed of inflation-protected U.S. Treasury bonds and invests in a range of Treasury securities that have at least one year left until maturity, are investment-grade and have more than $300 million in outstanding face value.
If you are serious about investing in bonds for portfolio diversification and making passive money, check out our roundup of the best online brokerages.
Our research analyst has compared the top trading platforms based on a range of factors such as commission fees, international market access and exchange rates to ensure you will find a broker that resonates with your trading philosophy.
The article originally appeared on ValueChampion.
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