WHAT'S in a product name? A lot. Choose the wrong one and you could seriously damage your company's prospects; get it right and the world will beat a path to your door.
Ask Creative Technology. Calling its MP3 player the Creative Nomad Jukebox was a mistake as it was just too long and too complicated, said marketing strategist Al Ries.
'The name is the single most important marketing decision you can make,' Mr Ries told The Straits Times, ahead of this week's Global Brand Forum, where he will be one of the speakers.
Although Creative was the first in the market with an MP3 music player, it lost out to Apple, which had a 'superior brand name - iPod - and a superior marketing strategy'.
But not only is the product name Nomad Jukebox a handicap, even the brand name Creative does not do the company any favours. If an Asian company like Creative wants to develop a global brand, it cannot take on such a generic name. 'All products are creative,' he said.
Mr Ries made his name from his book, Positioning: The Battle For Your Mind. He noted that successful companies advertised their products in such a way that consumers associated the function with the brand name. Look at Xerox - the product name has become a widely- used term for photocopying.
Another problem Creative faces in trying to build up a global profile is that it is offering a broad line of products and services marketed under a single brand name.
Mr Ries believes Creative 'will never become a big global brand because the name encompasses too many products'.
He points to the successful brands such as Starbucks, Absolut and Coca-Cola, which all sprang from a single product.
Once the brand is famous, however, it can extend its product line. Sony did this by establishing its presence with Walkman before branching into different products. Traps that Asian companies fall into when trying to break into the global brand arena include forgetting how the name sounds in English.
Mr Ries said that with English being so widely spoken worldwide, companies cannot afford to ignore their brand name's English version.
Many Chinese brand names, he reckons, will not make it on the global stage simply because they are not only difficult to spell but also to pronounce for an English speaker. This is not a problem exclusive to Chinese companies. While British and American firms benefit from their English-speaking cultures, European companies in places like Poland, for example, would be in the same boat.
A name should be 'short, easy to spell and pronounce and connotes what the brand stands for'.
Take Taiwan PC maker Asus. It has achieved much success after pioneering the first ultra-compact laptop computer, the Eee PC. But in the long run, Mr Ries thinks the 'weak' brand name and the 'weak' model name could be a liability.
Conversely, Ralph Lauren would not have been half the success he is if he had launched a brand using his real name, Ralph Lifshitz.
Asian companies do face an uphill task creating their own unique brand, agreed public relations expert Al Golin, founder and head of the worldwide PR agency GolinHarris. Mr Golin will also be speaking at the Global Brand Forum.
He said that companies have to convince their consumers that the product or service they buy is real or authentic.
For Asian companies wanting to compete with longer, more established competitive brands in the marketplace, PR efforts will need to focus on reinforcing an image of 'quality' among Asian companies. Still, Asian companies may see the tide turning in their favour.
Mr Golin said there is an increasing awareness of 'everything Asian' in the West - the Olympics will help - which the Asian firms should capitalise on.
There is an opportunity to combine a balance of their Asian origins and romance with modern marketing techniques to tell their stories around the world, he said.
Monday, August 11, 2008
Sunday, July 6, 2008
An alternative to OIL?
Companies around the world may be on a gold rush. Alot of them are onto Cow manure, algae, soalr energy, hydrogen ... one of these technologies, once deployed, could change the world.
Wednesday, June 11, 2008
Wednesday, June 4, 2008
Scheme helps local firm exploit new technologies
Scheme helps local firms exploit new technologies
I read about the launch of the Exploit-IP programme recently. How does the programme work? What is the criteria and how do we apply for it?
The Exploit-IP programme is a government-funded initiative to encourage local enterprises to harness and license new technologies to develop innovative products and services to compete in the global market.
The programme features an interactive one-stop portal (www.exploit-IP.com) for companies to source for new technologies from an international network of technology partners, including renowned universities, research and development organisations, and multinational corporations (MNCs).
Technologies are classified in distinct categories such as infocomm, media, materials, chemicals, food processing, energy, environment, manufacturing, logistics, electronics and health care, among others.
The programme is managed by a team of technology and licensing professionals who have experience in technology licensing and commercialisation.
Any Singapore-registered company wishing to join the programme can do so at www.exploit-IP.com
Annual membership fee is currently waived. E-mail queries to szetl@exploit-IP.com
I run a small retail business. How can I implement standards when I cannot afford to hire a consultant?
Spring Singapore's Standards Implementation for Productivity (SIP) initiative helps companies implement Singapore Standards, international standards (for example, ISO standards) or consortia standards (for example, RosettaNet standards).
SIP projects can be initiated by a group of Singapore-based enterprises, which can either be small and medium-sized enterprises (SMEs), MNCs or large local companies with their SMEs partners, which intend to improve productivity by adopting voluntary standards.
The minimum number of companies participating in a project is three.
Partial funding for SIP projects is available to help SMEs defray costs incurred in standards implementation through the engagement of an external consultant for a pre-determined period.
More information on SIP projects can be found at www.spring.gov.sg
For inquiries, please visit www.business.gov.sg or e-mail enterpriseone@spring.gov.sg
I read about the launch of the Exploit-IP programme recently. How does the programme work? What is the criteria and how do we apply for it?
The Exploit-IP programme is a government-funded initiative to encourage local enterprises to harness and license new technologies to develop innovative products and services to compete in the global market.
The programme features an interactive one-stop portal (www.exploit-IP.com) for companies to source for new technologies from an international network of technology partners, including renowned universities, research and development organisations, and multinational corporations (MNCs).
Technologies are classified in distinct categories such as infocomm, media, materials, chemicals, food processing, energy, environment, manufacturing, logistics, electronics and health care, among others.
The programme is managed by a team of technology and licensing professionals who have experience in technology licensing and commercialisation.
Any Singapore-registered company wishing to join the programme can do so at www.exploit-IP.com
Annual membership fee is currently waived. E-mail queries to szetl@exploit-IP.com
I run a small retail business. How can I implement standards when I cannot afford to hire a consultant?
Spring Singapore's Standards Implementation for Productivity (SIP) initiative helps companies implement Singapore Standards, international standards (for example, ISO standards) or consortia standards (for example, RosettaNet standards).
SIP projects can be initiated by a group of Singapore-based enterprises, which can either be small and medium-sized enterprises (SMEs), MNCs or large local companies with their SMEs partners, which intend to improve productivity by adopting voluntary standards.
The minimum number of companies participating in a project is three.
Partial funding for SIP projects is available to help SMEs defray costs incurred in standards implementation through the engagement of an external consultant for a pre-determined period.
More information on SIP projects can be found at www.spring.gov.sg
For inquiries, please visit www.business.gov.sg or e-mail enterpriseone@spring.gov.sg
Tuesday, June 3, 2008
Wrong way of creating wealth?
June 3, 2008
Rental firms 'leasing' cars from cash-strapped owners. They pay owners' loan instalments and use cars as rentals - but this is illegal
By Christopher Tan, Senior Correspondent
AGAINST THE LAW: On the surface, it looks like a good deal. But it is illegal to rent your car out in this way. Also, if something happens to the car, there may not be any insurance cover.
COMPANIES which offer financially strapped car owners a way out - by taking over their vehicles to be used as rentals - are sprouting. It makes good business sense for the dozen or so firms, which advertise their services online - they avoid the huge capital outlay of acquiring their own car fleet.
On the surface, it looks like a good deal for the car owners too. Many of them cannot sell their cars due to their huge loans and the fall in car prices in recent years. The 'rental' firms pay them a monthly fee for their cars, often enough to cover their loan instalments.
But there is a catch - a costly one. It is illegal to rent your car out this way.
If something happens to the car while it is hired out, there may not be any insurance cover. If it is stolen, insurers may not pay up.
The rules and penalties
Private car owners are allowed to rent their cars out only from 7pm on Friday to 7am the following Monday and from 7pm on the eve of a public holiday to 7am on the first working day following the public holiday.
For illegally renting out cars, both car owners and rental companies face fines of up to $1,000, jail terms of up to three months or both. Car owners also risk a driving ban of up to 12 months.
'Leased' car missing - now owner faces bankruptcy
CASH-STRAPPED businessman Lau Cheun Kee 'leased' his 2004 Honda Odyssey seven-seater to a rental firm when his food business failed last year.But he now faces a bigger problem: involuntary bankruptcy and possible prosecution by the Land Transport Authority.
A check by The Straits Times found several advertisements on a website, efair.com.sg, targeting individuals who cannot quite afford the car they bought.
An ad by Xtreme Car Rental read: 'Having problems to upkeep your current car? Wanted (sic) to sell away car but can't sell due to huge cash top-up?I can solve all your problems and I have help (sic) a lot of car owners.'
Another promised to not only take care of monthly instalments, but also give 'cash rebates'.All the owner needed to do was to leave the car with it, a 'licensed car rental company in Singapore'.
One ad by a Mr Ricky Soh was more direct: 'Are you having any difficulties in servicing your monthly instalment? No worries! Do e-mail me your car model, monthly instalment...and we can work it out for you.'
What these firms are doing is against Land Transport Authority (LTA) rules. 'Private car owners are not allowed to rent out their cars through rental companies,' its spokesman said.
They had to do so on their own - and only at certain times and on particular days of the week.
The LTA cracked down on six cases each in 2005 and 2006 and on 11 last year. There have already been six cases in the first four months of this year. Both car owners and rental firms face fines of up to $1,000, jail terms of up to three months or both. Car owners also risk a driving ban of up to 12 months.
Despite the penalties, trade sources say the practice is widespread.
'There are a lot of cases which go unreported,' said Mr Peter Chong, president of the Vehicle Rental Association, which represents over 30 rental firms controlling most of the rental fleet here.
Firms operating illegally do not need huge capital outlays to start up a fleet. They can reach out to consumers on a tight budget because they offer lower rates.
Mr Chong said that since many of these cars were not registered as rental cars, hirers may have no insurance cover in an accident.
'I've come across cases where insurers refuse to pay up because the vehicle was not a rental car,' he said. 'That's the danger.'
The LTA said it takes a serious view of illegal rentals, and is 'consistently taking action against those who fail to comply with the law''.
Source: The Straits Times
Rental firms 'leasing' cars from cash-strapped owners. They pay owners' loan instalments and use cars as rentals - but this is illegal
By Christopher Tan, Senior Correspondent
AGAINST THE LAW: On the surface, it looks like a good deal. But it is illegal to rent your car out in this way. Also, if something happens to the car, there may not be any insurance cover.
COMPANIES which offer financially strapped car owners a way out - by taking over their vehicles to be used as rentals - are sprouting. It makes good business sense for the dozen or so firms, which advertise their services online - they avoid the huge capital outlay of acquiring their own car fleet.
On the surface, it looks like a good deal for the car owners too. Many of them cannot sell their cars due to their huge loans and the fall in car prices in recent years. The 'rental' firms pay them a monthly fee for their cars, often enough to cover their loan instalments.
But there is a catch - a costly one. It is illegal to rent your car out this way.
If something happens to the car while it is hired out, there may not be any insurance cover. If it is stolen, insurers may not pay up.
The rules and penalties
Private car owners are allowed to rent their cars out only from 7pm on Friday to 7am the following Monday and from 7pm on the eve of a public holiday to 7am on the first working day following the public holiday.
For illegally renting out cars, both car owners and rental companies face fines of up to $1,000, jail terms of up to three months or both. Car owners also risk a driving ban of up to 12 months.
'Leased' car missing - now owner faces bankruptcy
CASH-STRAPPED businessman Lau Cheun Kee 'leased' his 2004 Honda Odyssey seven-seater to a rental firm when his food business failed last year.But he now faces a bigger problem: involuntary bankruptcy and possible prosecution by the Land Transport Authority.
A check by The Straits Times found several advertisements on a website, efair.com.sg, targeting individuals who cannot quite afford the car they bought.
An ad by Xtreme Car Rental read: 'Having problems to upkeep your current car? Wanted (sic) to sell away car but can't sell due to huge cash top-up?I can solve all your problems and I have help (sic) a lot of car owners.'
Another promised to not only take care of monthly instalments, but also give 'cash rebates'.All the owner needed to do was to leave the car with it, a 'licensed car rental company in Singapore'.
One ad by a Mr Ricky Soh was more direct: 'Are you having any difficulties in servicing your monthly instalment? No worries! Do e-mail me your car model, monthly instalment...and we can work it out for you.'
What these firms are doing is against Land Transport Authority (LTA) rules. 'Private car owners are not allowed to rent out their cars through rental companies,' its spokesman said.
They had to do so on their own - and only at certain times and on particular days of the week.
The LTA cracked down on six cases each in 2005 and 2006 and on 11 last year. There have already been six cases in the first four months of this year. Both car owners and rental firms face fines of up to $1,000, jail terms of up to three months or both. Car owners also risk a driving ban of up to 12 months.
Despite the penalties, trade sources say the practice is widespread.
'There are a lot of cases which go unreported,' said Mr Peter Chong, president of the Vehicle Rental Association, which represents over 30 rental firms controlling most of the rental fleet here.
Firms operating illegally do not need huge capital outlays to start up a fleet. They can reach out to consumers on a tight budget because they offer lower rates.
Mr Chong said that since many of these cars were not registered as rental cars, hirers may have no insurance cover in an accident.
'I've come across cases where insurers refuse to pay up because the vehicle was not a rental car,' he said. 'That's the danger.'
The LTA said it takes a serious view of illegal rentals, and is 'consistently taking action against those who fail to comply with the law''.
Source: The Straits Times
Wednesday, April 30, 2008
Approved Home Typed Business in Singapore!
30th April 2008
I HEARD that the Home Office Scheme is now extended to five years. But What businesses can I run from home?
Examples of businesses that are permitted under the Home Office Scheme include: Accountancy Services, Architectural Services, Consultancy Services (Business) , Consultancy Services (Engineering), Consultancy Services (Information Technology/Management)
Consultancy Services (Education), Design/Advertising Services, Transportation Services, Estate Agency,Insurance/Financial Planning Services, Technology based and knowledge intensive business, Trading Office.
Owners, tenants, authorised occupiers and subtenants of HDB flats, who are 21 years old and above, are eligible to apply under the scheme. The business should be registered with the Accounting and Corporate Regulatory Authority unless it is exempted from registration under the Business Registration Act. The business should also comply with the regulations of other government authorities and relevant licences/approvals must be obtained before the commencement of business.
To search for the licences/approvals that may be required for the business, please use the Online Business Licensing Service at the EnterpriseOne portal www.business.gov.sg
Source : Straits Times
I HEARD that the Home Office Scheme is now extended to five years. But What businesses can I run from home?
Examples of businesses that are permitted under the Home Office Scheme include: Accountancy Services, Architectural Services, Consultancy Services (Business) , Consultancy Services (Engineering), Consultancy Services (Information Technology/Management)
Consultancy Services (Education), Design/Advertising Services, Transportation Services, Estate Agency,Insurance/Financial Planning Services, Technology based and knowledge intensive business, Trading Office.
Owners, tenants, authorised occupiers and subtenants of HDB flats, who are 21 years old and above, are eligible to apply under the scheme. The business should be registered with the Accounting and Corporate Regulatory Authority unless it is exempted from registration under the Business Registration Act. The business should also comply with the regulations of other government authorities and relevant licences/approvals must be obtained before the commencement of business.
To search for the licences/approvals that may be required for the business, please use the Online Business Licensing Service at the EnterpriseOne portal www.business.gov.sg
Source : Straits Times
Sunday, March 16, 2008
He saves $16 K of of $20 K each month
March 16, 2008
ME & MY MONEY: He saves $16k out of his $20k pay each month
Financial adviser Eugene Soo makes regular investments and his unit trust portfolio reaps annual returns of 20%
By Lorna Tan, Finance Correspondent
MR EUGENE Soo, 26, has barely worked for two years since graduating from Nanyang Technological University (NTU) with a degree in business administration in 2006. But he is already earning an income that is surely the envy of both young as well as old graduates.
A licensed financial adviser representative with Professional Investment Advisory Services, his gross monthly income exceeds $20,000 a month. This includes his own sales commissions and overriding commissions of his team of 40 advisory representatives.
His interest in the field of personal finance was ignited when he signed up for a banking and finance diploma at Nanyang Polytechnic and found himself topping his cohort in the first year.
'I found out that I was inclined towards finance and numbers...and that spurred my interest in investing,' he recalled.
At NTU, he was the president of its Investment Interactive Club where he had a hand in organising talks and competitions to improve the financial literacy of students. Before long, he was itching to join the real world of investing and eventually took the plunge in his final year at the university by joining a financial advisory firm as an advisory representative.
That year, he qualified for the Million Dollar Round Table - an international, independent association of the world's most successful life insurance and financial services professionals - and was earning $8,000 to $10,000 a month. This was on top of his other income from giving tuition and running a mobile motorbike washing business which he had set up in his polytechnic days. He joined his current firm in September last year.
'I enjoy what I do. Helping people to grow their finances and giving them advice gives me satisfaction and drives me to want to excel,' he said.
His advice to young people is that they should start planning early as the most important factor in growing one's wealth is not how much you have, but how long you have to grow your money.
'Make it a habit to save and the desire to own something, be it an asset, material stuff, or your dreams. Aim for something in life. Never wait for an emergency before realising the importance of planning early,' he said.
Q What are your money habits?
A I used to be a spender when I was in school and when I first started work. I spent almost all that I earned. I would save for something and one big purchase would wipe out my savings.
But I am now a saver and I save close to 80 per cent of my income for long-term goals. I pay cash most of the time and use credit cards only if there is an interest-free payment tied with the purchase.
Q What financial planning have you done for yourself?
A About 15 per cent of my investments are in investment-linked insurance products (ILPs), while 75 per cent are in a unit trust portfolio which I started in my polytechnic days. The balance is in stocks.
My unit trust portfolio comprises 100 per cent equities, mainly in commodities and Asia-Pacific funds. It is also mainly in high-risk sectors because I am building it on a long-term basis.
I monitor it on a weekly basis and it has generated an annual return of 20 per cent.
Q What about insurance planning?
A I have mainly term plans, a whole life plan and ILPs. I am covered for $500,000 on my life. Annual premiums come up to around $5,500.
Get a foundation plan like a whole life and enhance it with a term cover in your prime years. The advantage of a basic whole life plan is that it locks in the premiums at an early age and still gives a cash value when you surrender it in your later years.
Q What's your investment philosophy?
A I believe in dollar-cost averaging over a long period of time. I have been in the market since my polytechnic days and have been pumping in regular investment amounts using my salary from part-time work.
Over the past few years, there were many uncertainties and events that adversely impacted the returns of my portfolio. But by constantly investing into the market, I was able to average out my cost as I am able to buy equities more cheaply when the markets are down.
Overall, this helped me to achieve decent positive returns that outdo the returns of savings accounts.
Q What businesses have you gone into?
A I have a passion for motorbikes, which was how I got the idea for a mobile motorbike washing business. This was set up during my polytechnic days and it generated close to $6,000 a month, excluding exam periods.
I went to condominiums and offered washing, waxing and polishing services to motorbike owners. Now, I still get assignments from clients, which I pass on to my friends. I intend to expand the business once I find time off from my busy schedule.
I have also bought and sold motorbikes. It started out quite by accident when I was surfing the Internet and saw a cheap buy. I spotted the opportunity and made the transaction. It is possible to make up to 40 per cent profit, which amounts to about $2,500 a bike from such transactions.
When at NTU, I ventured into event planning, such as organising company dinners, which was very lucrative. The business involved securing deals and coordinating with different suppliers.
Q Moneywise, what were your growing-up years like?
A I live in a four-room flat in Aljunied with my parents and sister. My father is a stockbroker, and when I was young, I witnessed how exciting watching the daily teletext could be. My mum is a housewife.
I was taught from a young age to earn money to get the things that I wanted. I did not have many toys or video games and most of the items were hand-me-downs from an older cousin.
My mum, who is a saver, used to take me to different banks every week just to deposit $10 or $20 into my accounts. 'Without $10, you think you will have $100?' she always said.
Q What's your retirement plan?
A I intend to retire before 50 and achieve a passive income of $20,000 a month. I hope to own properties in Australia and travel there often to relax.
My nest egg will be a lump sum of money invested into different asset classes such as properties for rental income, shares, unit trusts and a high guaranteed single premium plan.
Q And your car is...?
A A white Honda Integra. I bought it just before I graduated from NTU with my own money.
ME & MY MONEY: He saves $16k out of his $20k pay each month
Financial adviser Eugene Soo makes regular investments and his unit trust portfolio reaps annual returns of 20%
By Lorna Tan, Finance Correspondent
MR EUGENE Soo, 26, has barely worked for two years since graduating from Nanyang Technological University (NTU) with a degree in business administration in 2006. But he is already earning an income that is surely the envy of both young as well as old graduates.
A licensed financial adviser representative with Professional Investment Advisory Services, his gross monthly income exceeds $20,000 a month. This includes his own sales commissions and overriding commissions of his team of 40 advisory representatives.
His interest in the field of personal finance was ignited when he signed up for a banking and finance diploma at Nanyang Polytechnic and found himself topping his cohort in the first year.
'I found out that I was inclined towards finance and numbers...and that spurred my interest in investing,' he recalled.
At NTU, he was the president of its Investment Interactive Club where he had a hand in organising talks and competitions to improve the financial literacy of students. Before long, he was itching to join the real world of investing and eventually took the plunge in his final year at the university by joining a financial advisory firm as an advisory representative.
That year, he qualified for the Million Dollar Round Table - an international, independent association of the world's most successful life insurance and financial services professionals - and was earning $8,000 to $10,000 a month. This was on top of his other income from giving tuition and running a mobile motorbike washing business which he had set up in his polytechnic days. He joined his current firm in September last year.
'I enjoy what I do. Helping people to grow their finances and giving them advice gives me satisfaction and drives me to want to excel,' he said.
His advice to young people is that they should start planning early as the most important factor in growing one's wealth is not how much you have, but how long you have to grow your money.
'Make it a habit to save and the desire to own something, be it an asset, material stuff, or your dreams. Aim for something in life. Never wait for an emergency before realising the importance of planning early,' he said.
Q What are your money habits?
A I used to be a spender when I was in school and when I first started work. I spent almost all that I earned. I would save for something and one big purchase would wipe out my savings.
But I am now a saver and I save close to 80 per cent of my income for long-term goals. I pay cash most of the time and use credit cards only if there is an interest-free payment tied with the purchase.
Q What financial planning have you done for yourself?
A About 15 per cent of my investments are in investment-linked insurance products (ILPs), while 75 per cent are in a unit trust portfolio which I started in my polytechnic days. The balance is in stocks.
My unit trust portfolio comprises 100 per cent equities, mainly in commodities and Asia-Pacific funds. It is also mainly in high-risk sectors because I am building it on a long-term basis.
I monitor it on a weekly basis and it has generated an annual return of 20 per cent.
Q What about insurance planning?
A I have mainly term plans, a whole life plan and ILPs. I am covered for $500,000 on my life. Annual premiums come up to around $5,500.
Get a foundation plan like a whole life and enhance it with a term cover in your prime years. The advantage of a basic whole life plan is that it locks in the premiums at an early age and still gives a cash value when you surrender it in your later years.
Q What's your investment philosophy?
A I believe in dollar-cost averaging over a long period of time. I have been in the market since my polytechnic days and have been pumping in regular investment amounts using my salary from part-time work.
Over the past few years, there were many uncertainties and events that adversely impacted the returns of my portfolio. But by constantly investing into the market, I was able to average out my cost as I am able to buy equities more cheaply when the markets are down.
Overall, this helped me to achieve decent positive returns that outdo the returns of savings accounts.
Q What businesses have you gone into?
A I have a passion for motorbikes, which was how I got the idea for a mobile motorbike washing business. This was set up during my polytechnic days and it generated close to $6,000 a month, excluding exam periods.
I went to condominiums and offered washing, waxing and polishing services to motorbike owners. Now, I still get assignments from clients, which I pass on to my friends. I intend to expand the business once I find time off from my busy schedule.
I have also bought and sold motorbikes. It started out quite by accident when I was surfing the Internet and saw a cheap buy. I spotted the opportunity and made the transaction. It is possible to make up to 40 per cent profit, which amounts to about $2,500 a bike from such transactions.
When at NTU, I ventured into event planning, such as organising company dinners, which was very lucrative. The business involved securing deals and coordinating with different suppliers.
Q Moneywise, what were your growing-up years like?
A I live in a four-room flat in Aljunied with my parents and sister. My father is a stockbroker, and when I was young, I witnessed how exciting watching the daily teletext could be. My mum is a housewife.
I was taught from a young age to earn money to get the things that I wanted. I did not have many toys or video games and most of the items were hand-me-downs from an older cousin.
My mum, who is a saver, used to take me to different banks every week just to deposit $10 or $20 into my accounts. 'Without $10, you think you will have $100?' she always said.
Q What's your retirement plan?
A I intend to retire before 50 and achieve a passive income of $20,000 a month. I hope to own properties in Australia and travel there often to relax.
My nest egg will be a lump sum of money invested into different asset classes such as properties for rental income, shares, unit trusts and a high guaranteed single premium plan.
Q And your car is...?
A A white Honda Integra. I bought it just before I graduated from NTU with my own money.
Saturday, March 15, 2008
Commodities Spiral
March 15, 2008
Commodities price spiral: What next? How did it come to this?
As fears over a recession in the United States deepen, investors have been dumping the US dollar and US dollar-denominated investments and switching to other investments.
One of these is gold, always seen as a 'safe haven' for investors. It cruised past the historic US$1,000-an-ounce barrier this week.
Another big investment theme is commodities. Red-hot economic growth in Asia and elsewhere in the world has also meant rising demand for oil, precious metals and agricultural produce.
As investors pile more money into commodities, prices rise even further. Just this week, for example, crude oil hit an unheard-of US$111 (S$154) per barrel.
How high will prices go?
Do not ask the analysts. These days, most are reluctant to hazard a guess. This is especially so given the uncertain global economic environment and the continued financial upheaval in the US.
United Overseas Bank economist Ho Woei Chen believes demand for crude oil, diesel and petrol will fall as companies and consumers try to cut costs. But she is not about to forecast the next price threshold.
'Previously, the breaking point for oil was US$100 per barrel and when we went past that, everything kept on moving...so it's very difficult to say where the ultimate threshold might be,' she said.
Mr Bill O'Neill, a managing partner at commodity research house Logic Advisors, expects gold to rise to US$1,100 an ounce in light of the US dollar's continued woes.
How is this affecting people? Consumers hit by higher prices may cut back or switch to cheaper alternatives.
For example, motorists here bought less petrol this year despite the car population growing by 17.5 per cent. Some have switched to lower, cheaper grades of petrol.
Savvy investors are cashing in on the commodities boom. Some are putting their money in gold certificates and unit trusts that invest in commodities, or stocks directly linked to the commodities boom.
Some people are still taking it all in stride. A Straits Times poll of about 30 people showed that most will continue drinking coffee, never mind the price rises.
Source: The Straits Times
Commodities price spiral: What next? How did it come to this?
As fears over a recession in the United States deepen, investors have been dumping the US dollar and US dollar-denominated investments and switching to other investments.
One of these is gold, always seen as a 'safe haven' for investors. It cruised past the historic US$1,000-an-ounce barrier this week.
Another big investment theme is commodities. Red-hot economic growth in Asia and elsewhere in the world has also meant rising demand for oil, precious metals and agricultural produce.
As investors pile more money into commodities, prices rise even further. Just this week, for example, crude oil hit an unheard-of US$111 (S$154) per barrel.
How high will prices go?
Do not ask the analysts. These days, most are reluctant to hazard a guess. This is especially so given the uncertain global economic environment and the continued financial upheaval in the US.
United Overseas Bank economist Ho Woei Chen believes demand for crude oil, diesel and petrol will fall as companies and consumers try to cut costs. But she is not about to forecast the next price threshold.
'Previously, the breaking point for oil was US$100 per barrel and when we went past that, everything kept on moving...so it's very difficult to say where the ultimate threshold might be,' she said.
Mr Bill O'Neill, a managing partner at commodity research house Logic Advisors, expects gold to rise to US$1,100 an ounce in light of the US dollar's continued woes.
How is this affecting people? Consumers hit by higher prices may cut back or switch to cheaper alternatives.
For example, motorists here bought less petrol this year despite the car population growing by 17.5 per cent. Some have switched to lower, cheaper grades of petrol.
Savvy investors are cashing in on the commodities boom. Some are putting their money in gold certificates and unit trusts that invest in commodities, or stocks directly linked to the commodities boom.
Some people are still taking it all in stride. A Straits Times poll of about 30 people showed that most will continue drinking coffee, never mind the price rises.
Source: The Straits Times
Saturday, February 2, 2008
Looking for a room to rent?
Looking for a room to rent? Try ex-army camp - Singapore
Two former barracks redeveloped as hostels to meet housing crunch caused by surge in number of foreigners here
WHEN rent for engineering student Wu He Kun and his three friends got too high, they turned to a former army camp instead.
From paying $1,600 a month for a three-room flat in Commonwealth, the four China students now shell out just $1,000 a month for a two-room hostel in the former Singapore Civil Defence Force camp in Jalan Bahar.
The housing crunch in Singapore, due to a boom in the number of foreigners living here, has caused the Singapore Land Authority to open up two former military barracks in the last six months to be used as hostels. The number of foreigners here went up from 798,000 in 2005 to 875,500 in 2006.
Highlighting his problem, Mr Wu, 24, said: ‘I viewed so many flats online but the rents were all more than what they offer here,’ he said.
Property developers are also seeing the potential in making money from such alternative homes.
Last week, five hostel operators made bids for the former Ulu Pandan camp and the winning company, E M Services, won only after a bid which was 60 per cent above the valuation.
Fresh air a bonus‘I like the fresh air and open space here. This is something I don’t get back home.’ VIETNAMESE STUDENT THO NGUYEN, on the unit he rents at the former SCDF camp in Jalan BaharE M Services, which bid $122,725 of monthly rent, is planning to pump $5 million to transform the camp into a full-facility student hostel. The lease is renewable on terms till 2017.
When the Ulu Pandan hostel starts operations in June, these two former camps will house up to 1,800 foreign students in total.
For the Jalan Bahar site, Jian Yu Construction spent $7 million to spruce up the place including repainting and landscape works.
There are 360 units each between 420 and 500 sq ft, with a kitchen, toilet and living room. The rent ranges from $700 to $1,100.
The hostel opened last July and now houses close to 900 foreign students.
Vietnamese student Tho Nguyen, 16, is now paying $500 for a unit he shares with two others. The Informatics student has been here since last September.
‘I like the fresh air and open space here,’ he said. ‘This is something I don’t get back home.’
The third camp tenanted out was the old police hostel in Cantonment which was converted into Pearl’s Hill Hostel in 2004.
Vita Group pumped in $1.5 million on renovations, alterations, retrofitting and furniture to turn the old building into a hostel.
With its central location, 85 per cent of its 142 units were snapped up by foreign students in the first six months of operation.
Bangladeshi trainee doctor Fetama Yasmin, 39, pays $650 monthly for a room she shares with another. She works at the Singapore General Hospital nearby.
‘Sometimes, I even take a 20-minute walk to work and save on transport,’ she said.
Source : Straits Times - 03 Feb 2008
Two former barracks redeveloped as hostels to meet housing crunch caused by surge in number of foreigners here
WHEN rent for engineering student Wu He Kun and his three friends got too high, they turned to a former army camp instead.
From paying $1,600 a month for a three-room flat in Commonwealth, the four China students now shell out just $1,000 a month for a two-room hostel in the former Singapore Civil Defence Force camp in Jalan Bahar.
The housing crunch in Singapore, due to a boom in the number of foreigners living here, has caused the Singapore Land Authority to open up two former military barracks in the last six months to be used as hostels. The number of foreigners here went up from 798,000 in 2005 to 875,500 in 2006.
Highlighting his problem, Mr Wu, 24, said: ‘I viewed so many flats online but the rents were all more than what they offer here,’ he said.
Property developers are also seeing the potential in making money from such alternative homes.
Last week, five hostel operators made bids for the former Ulu Pandan camp and the winning company, E M Services, won only after a bid which was 60 per cent above the valuation.
Fresh air a bonus‘I like the fresh air and open space here. This is something I don’t get back home.’ VIETNAMESE STUDENT THO NGUYEN, on the unit he rents at the former SCDF camp in Jalan BaharE M Services, which bid $122,725 of monthly rent, is planning to pump $5 million to transform the camp into a full-facility student hostel. The lease is renewable on terms till 2017.
When the Ulu Pandan hostel starts operations in June, these two former camps will house up to 1,800 foreign students in total.
For the Jalan Bahar site, Jian Yu Construction spent $7 million to spruce up the place including repainting and landscape works.
There are 360 units each between 420 and 500 sq ft, with a kitchen, toilet and living room. The rent ranges from $700 to $1,100.
The hostel opened last July and now houses close to 900 foreign students.
Vietnamese student Tho Nguyen, 16, is now paying $500 for a unit he shares with two others. The Informatics student has been here since last September.
‘I like the fresh air and open space here,’ he said. ‘This is something I don’t get back home.’
The third camp tenanted out was the old police hostel in Cantonment which was converted into Pearl’s Hill Hostel in 2004.
Vita Group pumped in $1.5 million on renovations, alterations, retrofitting and furniture to turn the old building into a hostel.
With its central location, 85 per cent of its 142 units were snapped up by foreign students in the first six months of operation.
Bangladeshi trainee doctor Fetama Yasmin, 39, pays $650 monthly for a room she shares with another. She works at the Singapore General Hospital nearby.
‘Sometimes, I even take a 20-minute walk to work and save on transport,’ she said.
Source : Straits Times - 03 Feb 2008
Sunday, January 20, 2008
Me and My Money
Jan 20, 2008
ME & MY MONEY
She builds portfolio to reduce reliance on salary
Local advisory firm's director manages annual returns of around 20% on her investments
By Lorna Tan, Finance Correspondent
GROWING up as the eldest child in a not so well-to-do family of five, Dr Rachael Tay, 37, realised quickly that one way up the ladder of success was through education.
That conviction has already paid out healthy dividends for her. Dr Tay has been a director at GYC Financial Advisory since 2004.
As a youngster, she made a second key decision: To study overseas and broaden her horizons. 'I wanted an overseas education to see the world and obtain a broader perspective. And I knew the only way I could venture abroad was through a scholarship,' she recalled in an interview with The Sunday Times.
A former CHIJ St Nicholas Girls' School and Hwa Chong Junior College student, Dr Tay did just that. She won a scholarship from Singapore Technologies (ST) to study engineering at Imperial College London.
There she accomplished the great feat of winning a fellowship bursary and industrial sponsorship to do a fully-paid PhD in Materials Science - Advanced Metallurgy with no bond attached. She did the course right after completing her Bachelor of Engineering degree.
While serving her six-year bond at ST as a business development manager, Dr Tay found herself involved in the world of corporate finance.
This was one of the key factors for her switch to the financial advisory sector in 2004, which was when GYC obtained its financial advisory licence.
'I liked the idea of joining a smaller firm as a pioneer. My contributions are direct and I can see the fruits of my labour. I also can foresee building a financial advisory career for life,' said Dr Tay, who heads corporate financial services and investments at GYC.
When in Britain, she met her future husband, Mr Dave Wilkins, 36, who is a management consultant with DPI. They have been married for over 11 years and have three daughters - Hannah, nine, Abigail, seven, and Kirsten, 17 months.
Q What are your money habits?
A I have always been a saver. Perhaps because of my upbringing, I am conditioned to save and not spend beyond my means.
I save 30 per cent to 40 per cent of my monthly salary, which is channelled into a unit trust portfolio monthly. I make sure I have six months' provision for expenses sitting in my bank account and the money market.
Q What financial planning have you done for yourself?
A My equity investments are split approximately 40 per cent in stocks and 60 per cent in unit trusts. I have sold all my United States stocks as I have been bearish on the greenback since four years ago.
My stock portfolio was structured mainly for dividend yields. It comprises 10 counters such as ST Engineering, Ascendas Real Estate Investment Trust (Reit), Suntec Reit and Mapletree Logistics Trust.
I now take a longer term view on my own investments and tend to tinker much less, leaving the disciplined approach GYC has developed to do its job.
My primary strategy is now buy and hold, and rebalance once a year. Over the past five years, my investments have averaged annual returns close to 20 per cent.
Q What about insurance planning?
A When our first child was born, we bought our first life insurance policies. We had already decided on investment-linked plans for the high sum assured and investment element. We also got hospital and surgical insurance.
I was a novice investor then so for part of our children's education planning, we went with an education endowment. I am now kicking myself for accepting the low yield of such policies, and making up for it with investment portfolios for the children.
Now with three children, we have upped our life, disability, personal accident and critical illness cover to over half-a-million dollars each, and have also obtained full mortgage protection.
I am insured for $500,000 for critical illness and $650,000 for life. Our annual premiums amount to around $28,000.
Q How did you get interested in investing?
A I became interested in investing 10 years ago. I saw investing as a means of reducing one's dependence on a monthly pay cheque.
This was my starting premise. I started like many Singaporeans, putting money into the local stock market. I still remember vividly asking a colleague at the time, 'How do I open a Central Depository account?'.
I learnt how to long and short stocks. I later ventured into US and British markets, and also bought unit trusts. That was during a time of great mistrust - forgive the pun - in unit trusts, because many tech-themed ones were launched at sky-high valuations and they subsequently fell dramatically.
For me, unit trusts provided two advantages at the time: First, as I had to juggle looking after my children and work, I had precious little time to monitor my stock portfolio and needed convenient, diversified market access. Second, unit trusts allowed me to initiate a regular investment programme and practise dollar cost averaging.
Q Your best investment to date?
A My best investment would be a two-bedroom London Docklands apartment bought some time in 2000. It was marketed in Singapore and the purchase price was over £200,000 (S$560,400). We put a down payment of £20,000 on it. We sold it when its value doubled about nine months later.
Q What's your worst investment?
A My worst would be a dot.com US stock bought around the year 2000 during the days when price-earnings ratios temporarily became irrelevant. I have since written off the US$20,000 (S$28,600) investment as I would have had to pay more in brokerage than what I would get back today!
Q Any other investments?
A We have a modest 100-bottle wine collection more for drinking than investment purposes.
I have a six-figure sum invested in a venture capital fund and a private equity fund which will hopefully bear great returns in time to come, but I am not counting my eggs yet!
Q Moneywise, what were your growing-up years like?
A Growing up, my family of five was certainly not well to do, but neither did we starve.
Dad was the sole breadwinner as a factory supervisor and mum took in occasional seamstress work to supplement the family income. We were taught to be frugal and to spend only on necessities. Dad's hope for us was that the great enabler - education - would help us improve our lives.
Q Your home is...?
A We now live in a four-bedroom 2,000 sq ft condominium unit in Yio Chu Kang. It was purchased at $790,000 in end-2002 and is now worth about $1.3 million.
Q And your car is...?
A We drive a gold Nissan Presage.
ME & MY MONEY
She builds portfolio to reduce reliance on salary
Local advisory firm's director manages annual returns of around 20% on her investments
By Lorna Tan, Finance Correspondent
GROWING up as the eldest child in a not so well-to-do family of five, Dr Rachael Tay, 37, realised quickly that one way up the ladder of success was through education.
That conviction has already paid out healthy dividends for her. Dr Tay has been a director at GYC Financial Advisory since 2004.
As a youngster, she made a second key decision: To study overseas and broaden her horizons. 'I wanted an overseas education to see the world and obtain a broader perspective. And I knew the only way I could venture abroad was through a scholarship,' she recalled in an interview with The Sunday Times.
A former CHIJ St Nicholas Girls' School and Hwa Chong Junior College student, Dr Tay did just that. She won a scholarship from Singapore Technologies (ST) to study engineering at Imperial College London.
There she accomplished the great feat of winning a fellowship bursary and industrial sponsorship to do a fully-paid PhD in Materials Science - Advanced Metallurgy with no bond attached. She did the course right after completing her Bachelor of Engineering degree.
While serving her six-year bond at ST as a business development manager, Dr Tay found herself involved in the world of corporate finance.
This was one of the key factors for her switch to the financial advisory sector in 2004, which was when GYC obtained its financial advisory licence.
'I liked the idea of joining a smaller firm as a pioneer. My contributions are direct and I can see the fruits of my labour. I also can foresee building a financial advisory career for life,' said Dr Tay, who heads corporate financial services and investments at GYC.
When in Britain, she met her future husband, Mr Dave Wilkins, 36, who is a management consultant with DPI. They have been married for over 11 years and have three daughters - Hannah, nine, Abigail, seven, and Kirsten, 17 months.
Q What are your money habits?
A I have always been a saver. Perhaps because of my upbringing, I am conditioned to save and not spend beyond my means.
I save 30 per cent to 40 per cent of my monthly salary, which is channelled into a unit trust portfolio monthly. I make sure I have six months' provision for expenses sitting in my bank account and the money market.
Q What financial planning have you done for yourself?
A My equity investments are split approximately 40 per cent in stocks and 60 per cent in unit trusts. I have sold all my United States stocks as I have been bearish on the greenback since four years ago.
My stock portfolio was structured mainly for dividend yields. It comprises 10 counters such as ST Engineering, Ascendas Real Estate Investment Trust (Reit), Suntec Reit and Mapletree Logistics Trust.
I now take a longer term view on my own investments and tend to tinker much less, leaving the disciplined approach GYC has developed to do its job.
My primary strategy is now buy and hold, and rebalance once a year. Over the past five years, my investments have averaged annual returns close to 20 per cent.
Q What about insurance planning?
A When our first child was born, we bought our first life insurance policies. We had already decided on investment-linked plans for the high sum assured and investment element. We also got hospital and surgical insurance.
I was a novice investor then so for part of our children's education planning, we went with an education endowment. I am now kicking myself for accepting the low yield of such policies, and making up for it with investment portfolios for the children.
Now with three children, we have upped our life, disability, personal accident and critical illness cover to over half-a-million dollars each, and have also obtained full mortgage protection.
I am insured for $500,000 for critical illness and $650,000 for life. Our annual premiums amount to around $28,000.
Q How did you get interested in investing?
A I became interested in investing 10 years ago. I saw investing as a means of reducing one's dependence on a monthly pay cheque.
This was my starting premise. I started like many Singaporeans, putting money into the local stock market. I still remember vividly asking a colleague at the time, 'How do I open a Central Depository account?'.
I learnt how to long and short stocks. I later ventured into US and British markets, and also bought unit trusts. That was during a time of great mistrust - forgive the pun - in unit trusts, because many tech-themed ones were launched at sky-high valuations and they subsequently fell dramatically.
For me, unit trusts provided two advantages at the time: First, as I had to juggle looking after my children and work, I had precious little time to monitor my stock portfolio and needed convenient, diversified market access. Second, unit trusts allowed me to initiate a regular investment programme and practise dollar cost averaging.
Q Your best investment to date?
A My best investment would be a two-bedroom London Docklands apartment bought some time in 2000. It was marketed in Singapore and the purchase price was over £200,000 (S$560,400). We put a down payment of £20,000 on it. We sold it when its value doubled about nine months later.
Q What's your worst investment?
A My worst would be a dot.com US stock bought around the year 2000 during the days when price-earnings ratios temporarily became irrelevant. I have since written off the US$20,000 (S$28,600) investment as I would have had to pay more in brokerage than what I would get back today!
Q Any other investments?
A We have a modest 100-bottle wine collection more for drinking than investment purposes.
I have a six-figure sum invested in a venture capital fund and a private equity fund which will hopefully bear great returns in time to come, but I am not counting my eggs yet!
Q Moneywise, what were your growing-up years like?
A Growing up, my family of five was certainly not well to do, but neither did we starve.
Dad was the sole breadwinner as a factory supervisor and mum took in occasional seamstress work to supplement the family income. We were taught to be frugal and to spend only on necessities. Dad's hope for us was that the great enabler - education - would help us improve our lives.
Q Your home is...?
A We now live in a four-bedroom 2,000 sq ft condominium unit in Yio Chu Kang. It was purchased at $790,000 in end-2002 and is now worth about $1.3 million.
Q And your car is...?
A We drive a gold Nissan Presage.
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