We ended 2010 on a high note. Singapore economy grew 14.7 per cent for the whole of 2010 based on advance estimate. The Straits Times Index (STI) on the last day of 2010 was up 10.1 per cent from 31.12.2009 to close at 3,190.04 points. Residential properties surged last year and so were commodities asset class.
Cash saved in banks were attracting very low interest rates. For POSB Bank, interest rate for first S$100,000 is still at 0.1%. This hardly compensates the inflation faced by consumers. The Consumer Price Index (CPI) increased 3.8% in November 2010 over the same period in 2009. This was due mainly to higher transport, housing and food costs. Money not invested in other asset classes lost values but the only consolation was that the risk of losing the principal amount was limited.
The employment situation in Singapore was tight, which was good news for Singapore workers. The seasonally adjusted overall unemployment rate was 2.1% in September 2010. This compares well with advanced nations such as US (9.8%) and Japan (5.1%). If this continues in the New Year, we have much to cheer. Being employed is the best defence to navigate in this uncertain global economic climate.
Here wishing all a Happy and Satisfying New Year as we move into 2011.
Copyright © 2011, limkimtong for Living Investment
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