The SGD is strong, making imported goods coming in cheaper. Hence, inflation is controlled. The Monetary Authority of Sgp controls inflation and GDP by adjusting their exchange rate. Their exchange rate is denominated by an index called the S$NEER.

When economic activity slows down, the MAS has to slow down the currency appreciation pace of their SGD, hopefully this will stimulate the economy to run faster.

The days of low interest rate in Sgp is numbered. If you look at the reading of the Sgp Swap Offer Rate (SOR) and the Sgp Interbank Overnight Rate (SIBOR), they have been incaresing for the last few months.

Not actually, when MAS is easing bias, no chance to raise interest rate.

Sg inflation is zero, instead officially CPI number is at negative territory or deflation.
Deflation? No chance for rate hike.

SIBOR up may because of money outflow which resulted in a more tighter liquidity in inter-bank lending.
As Sgd is sliding against USD, money will pile up to short Sgd vs USD.
While with USD potential hike in interest rate, why put money in SIBOR that has no chance to raise rate?

I myself also wanted to contribute more into EPF but it seems like the 60k/year limit is not for those with salary. Any suggestion how I can contribute more?

Based on my understanding, RM60k is for everyone regardless whether contributor is salary earner or not

It is for everyone. Say if you and your employer contributed 40K for this year. So, you've 20K left to max out for yourself with your own personal money.

Its 60k and not included normal salary based contribution. In your example it should be 40k plus extra 60k.

even with so many issues, some dare to add 60k extra into EPF

I reckoned if the confidence builds up again, I, for one, would not hesitate to add into the EPF. Perhaps we can keep adding-up slowly as the years go by in order to reap more dividends. After the years have gone by, we cannot add anymore,.......unless we don't mind for the entire amount to be locked-up till 60.

Anyway, all is just for discussion sake, we still have many years to go before 55. The EPF may change the EPF Acts again in one or two years from now.

so now u not gonna add more right? focus on overseas investment

Thanks for all the reply, I will call EPF to re-confirm. My target is to put in about 10k per year

Hansel,

It's difficult to predict the future. No one knows exactly how it will go. Sometimes, in investments, when everyone is bearish, it is time to be bullish. So, when confidence is low, you go in whenever everyone is afraid.

If you remember, it was just hardly 4 years ago, when US dollar was low (2010-2011), US just trying to get out from recession, everyone was cursing at them and it's going to collapse, Malaysia politicians and economists were so proud that Ringgit remains strong (1USD=2.95 in late 2011), people have so strong confidence in Malaysia, billions were invested, thousands of jobs were created, property market in Malaysia were going up double digit despite elsewhere going down, (and during this time, Najib made its stealth move with 1MDB and its shell companies with JLow ). Everyone was happy. Fast forward today, we know that was the peak. The Ringgit was to be dumped back then, which I gladly did.

Now, when the Ringgit is low (1 USD=4.25), everyone is cursing Ringgit, confidence in Malaysia economy is at low point, USD at the highs.. I think it's time to go the other way round. Therefore, I've actually reduced my overseas investment and repatriate some back to Malaysia and park here for the opportunities.

This post has been edited by danmooncake: Oct 25 2015, 10:14 PM

Jibby says Thank You

Don't forget to give us an update what you've find out. Is it 60k max (total) or 60k per individual own contribution (not counting employer's part - as per magika).

I think it is 60k total if I read the ruling correctly but I could be wrong too.

I'm not investing in any of Jibby's cronies project and I make sure I can pull out if I wanted to..

danmooncake,

1) Are you the same person that put 60K per year into EPF??

2) Are you 55 years old yet??

3) Are you the same person that bought a property in Iskandar project??

If you say yes to (1) to (3), please tell us how are (1) to (3) consistent with your statement that.

A) I'm not investing in any of Jibby's cronies project.

and

B) I make sure I can pull out if I wanted to..

Dreamer

Yes for (1) and (3) but for (3) not directly. My partner and I got a business investment that involves a property purchase and I had a contractual clause for pulling out if certain conditions aren't met.

If you are trying to say that Jibby may got its dirty hands dirty into using EPF monies anyway,...
I don't consider that my direct exposure. That's EPF decision. All I care is consistent divi payout every year and if something really goes south, I'll pull out my "leaving the country" card to get EPF money out if hasn't reach qualified distribution age by then.

I think I'd stay on the sidelines a little bit more before ploughing in more of my bullets into the EPF,.... yeah,.. think I'll focus into my overseas investment bit more first,... the EPF is not going to run away, at least not that soon.

Wat is yo average 'overseas investment' returns?

Tks Dan,... I understand fully what you have just said,... which is why I am considering the EPF very closely. Even if I am no longer staying in Msia, I can always leave my funds inside the EPF if it is safe enough, and if the yield stays close to 6%.

I have not counted all of them, but I monitor my SG REITs and counters closely,... For my current holdings, the annual yield is running at 7.9922%.