Best currencies to trade from Singapore

Forex trading is a popular investment activity among Singaporeans, and the city-state has established itself as a hub for foreign exchange trading in the region. Singapore’s location at the crossroads of major trading routes, coupled with its advanced financial infrastructure, has made it an attractive destination for traders worldwide.

In October, it was announced by The Monetary Authority of Singapore (MAS) that the average daily trading volumes (ADTV) for foreign exchange (FX) in Singapore had risen to US$929 billion in 2022, marking an increase of 45% from April 2019. This steady growth helped Singapore to maintain its position as the world’s third-largest FX center, following the UK and the US, with a global FX volume share of 9.5% as of April 2022, up from 7.7% in April 2019. The growth in FX ADTV in Singapore was widespread across major currencies, with the US dollar, Japanese yen, and euro leading the way, with forex trade volume increasing from 39% to 50% in 2022. Following closely behind were the Chinese yuan and the Singapore dollar.

This article explores the best currencies to trade from Singapore, analyzing their performance against each other and providing insights into why they are popular among Singaporean traders.

Top Currencies for Singaporean Traders

The US dollar, euro, Japanese yen, Australian dollar, and Singapore dollar are among the best currencies to trade in Singapore. Each of these currencies has unique characteristics and trading patterns, making them ideal for different types of investors.

US Dollar (USD)

https://pixabay.com/id/photos/dolar-mata-uang-uang-dolar-amerika-499481/

The US dollar (USD) is the most widely traded currency in the world, and its influence extends far beyond the United States. The USD is often used as a reserve currency by central banks around the world, and many commodities, such as oil, are priced in dollars. As a result, the USD is one of the most popular currencies for trading from Singapore.

When trading USD from Singapore, traders often pair it with the Singapore dollar (SGD) or other major currencies, such as the euro, Japanese yen, or Australian dollar. The performance of the USD against the SGD and other currencies is closely watched by traders, as it can have a significant impact on their investment portfolios.

In recent years, the USD has experienced highs and lows against the SGD. In 2020, the USD weakened significantly against the SGD due to global economic impacts. However, the USD has since rebounded, and as of March 2023, it is trading at around 1.33 SGD.

Overall, the USD remains a popular currency for trading from Singapore, and its performance against the SGD and other currencies will continue to be closely monitored by traders in the coming years.

Japanese Yen (JPY)

Japan is a major regional economic power with strong trade and investment ties with Singapore, making the JPY an attractive option for traders.

When trading JPY from Singapore, traders often pair it with other major currencies, such as the USD, EUR, or AUD. Traders are drawn to the JPY for several reasons, including its status as a safe-haven currency during global economic uncertainty. Japan’s strong export-oriented economy and the policies of the Bank of Japan also play a role in the JPY’s popularity as a trading currency.

Euro (EUR)

The euro is one of the best currencies to trade in Singapore due to its liquidity, stability, and global relevance. Traders in Singapore can benefit from trading the euro by diversifying their portfolios, managing currency risk, and taking advantage of trading opportunities in the forex market. Additionally, The EUR is a popular choice for traders due to the strong economic ties between the EU and Singapore and the EUR’s status as a reserve currency.

The policies of the European Central Bank also play a role in the EUR’s popularity as a trading currency. The euro is backed by the European Central Bank (ECB), which implements policies to maintain price stability and support economic growth in the eurozone. This makes the euro less prone to sudden fluctuations and provides a sense of security to traders looking for a stable currency to trade.

Australian Dollar (AUD)

The Australian dollar (AUD) is a popular currency for trading from Singapore due to its close economic ties with the Asia-Pacific region, including Singapore. Australia is a major exporter of natural resources, and the AUD is closely tied to commodity prices, making it an attractive option for traders.

The AUD is a commodity currency closely linked to the prices of natural resources such as coal, iron ore, and gold. As Singapore is a major hub for commodity trading in the Asia-Pacific region, traders can use the close correlation between the AUD and commodity prices to make profitable trades. This makes the AUD an attractive currency for traders looking to diversify their portfolios and exploit market opportunities.

Traders can profit from the AUD’s volatility by trading AUD currency pairs such as AUD/USD or AUD/JPY.

Singapore Dollar (SGD)

https://pixabay.com/id/photos/singapura-uang-catatan-mata-uang-1821535/

The Singapore dollar (SGD) is the official currency of Singapore and is a popular currency for trading both domestically and internationally. As one of Asia’s most stable and developed economies, Singapore attracts significant foreign investment, which drives demand for the SGD.

Singapore has a stable political and economic environment, with controlled inflation and a strong financial system, which adds to the attractiveness of the SGD as a currency for trading. Furthermore, the Monetary Authority of Singapore (MAS) follows a managed float exchange rate regime, which allows for some flexibility in the value of the SGD while maintaining stability. This makes the SGD an attractive currency for forex traders looking for a currency with lower volatility.

The SGD is often used as a proxy for other emerging market currencies in the region, adding to its popularity in forex trading. Overall, the SGD’s stable economy, strong financial system, and flexibility make it a popular currency for trading in Singapore.

 

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Importance of Estate Planning in Singapore

“My siblings are already fighting over my properties even though I’m still alive,” my uncle joked, acknowledging the numerous businesses and properties he owns. He stressed the importance of securing a competent lawyer to ensure his assets are distributed fairly.

You see, he plans to use his resources to establish a foundation dedicated to supporting vulnerable communities, particularly children who have been abandoned by their parents. This charitable endeavor holds a special place in his heart. He wants to ensure that his legacy will continue to help those in need even after he’s gone.

If he does not craft a Will in time, his estate will be divided according to Singapore’s intestacy laws. Having a Will will enable him to distribute his estate according to his wishes, after his death. It will allow him to give his money to the people he feels needs it most. Can you imagine how this vital document can change the lives of those around him?

Let us begin to understand what a Will is.

WHAT IS A WILL?

A Will is a legal declaration of how your assets will be distributed after your death. It prevents disagreements and provides clarity over your inheritance, which can be distributed to your loved ones or other charitable institutions after you pass away.

Apart from distribution of financial assets, a Will allows you to appoint your executors and your children’s guardians. You can approach a lawyer to help you draft a Will or use an online writing service. Feel free to change your Will anytime you see fit.

WHAT IS INSIDE A WILL?

Your Will should clearly state who is going to:
a. inherit your estate (i.e., include your beneficiary or beneficiaries),
b. take care of your children who are under 21,
c. carry out your wishes (i.e., your executor), and
d. dispose your assets if your beneficiaries pass away before you.

WHAT ARE THE BENEFITS OF ESTATE PLANNING?

1. As mentioned above, estate planning helps ensure that your assets are distributed according to your wishes after your death.
2. It specifies who will manage your affairs after you pass away to ensure that your matters are taken care of in a timely manner. Lasting Power of Attorney (LPA) allows someone to make decisions on your behalf in the event that you are unable to do so yourself.
3. It can help minimize taxes and legal fees.
4. Estate planning aids in ensuring that your business is smoothly transitioned to your heirs or successors.

CAN YOU PUT YOUR CPF IN THE WILL?

Central Provident Fund (CPF) savings are not covered under a Will and cannot be distributed via a Will.

You are strongly encouraged to make a CPF nomination so that your intended beneficiaries or charities can have quick access to the funds once unforeseen events happen. Moreover, completing your CPF nomination can help lessen administrative delays and avoid paying a fee to the Public Trustee’s Office for administering un-nominated CPF funds.

Not having a CPF nomination can result to your savings being distributed according to Singapore’s intestacy laws (or Islamic inheritance law).

WHAT IF I HAVE NO WILL?

If you die without creating a Will in Singapore, your assets will be distributed according to Singapore’s intestacy laws or Islamic inheritance law. The Intestate Succession Act (ISA) will take effect. Distribution following the law may not be in accordance with your wishes or may not fit your family’s current financial situation.

Image Credits: unsplash.com

Having a Will enables you to distribute your assets on your own terms. Whether you want to provide for your elderly parents or your children, updating your estate plan regularly can ensure that it remains relevant and effective in light of changes in your personal circumstances and the law.

Sources: 1, 2, & 3

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How to Negotiate a Salary Increase in Singapore

Negotiating a salary increase can help you maximize your earnings in the Lion City. Although Singapore’s salaries are among the highest in the region, the cost of living is also high. If you are considering a salary negotiation, here are some ways to increase your confidence and make the task less nerve-wracking.

#1: BE PREPARED

Before entering any negotiation, it is crucial to do your research. Preparation can help you reduce your nerves. Research the industry’s average salary for your designation, the company’s financial performance, and any related economic factors.

You can use Salary Comparison tools online, which are designed to give you a comprehensive overview of key roles and their respective salaries. For instance, you can check out MOM’s Salary Comparison feature to compare your salary across organizations of various industries, establishment sizes, and employee types. This free feature comes with colorful graphs, which makes the information easy to understand.

#2: DESCRIBE YOUR ACHIEVEMENTS

When negotiating a salary increase, display your accomplishments to underscore the value you bring to the company. Highlight any projects you have led or have been involved with as well as the recognitions or awards you have received.

Do not forget to focus on the numbers! You can try to deny it as much as you want, but businesses revolve around making profits and growing numbers. Use statistics as direct proof of your contributions to the company. For example, in the past two months, I have brought in three new clients, which resulted in an 80% total increase in the company’s sales.

#3: IGNORE YOUR PREVIOUS SALARY

Ignore your previous salary. While it is always better to earn more than in your previous job, using your last drawn salary as a benchmark is by no means a good gauge. You have gained so much experience, skills, and knowledge since then. Instead, look at your objective value to the company.

#4: IMPROVE YOUR SKILLS

When talking about value, your added skills and abilities can help the company to flourish. Turn the tables into your favor by having appropriate education, expertise, and experience. Start by focusing on investing in seminars, workshops, and courses.

Best of all? Most of these resources are available at no cost. In the comfort of your own home, you can acquire Google and Microsoft certificates online. There are other online platforms that offer free courses such as Centre for Excellence and Coursera.

#5: BE SPECIFIC

When stating your intent for an increase, you need to be specific and provide a realistic range. This will give the company some flexibility in meeting your expectations while also opening the floor for negotiation.

#6: CONSIDER OTHER BENEFITS

As an HR Consultant, I often give a brief background about the company and emphasize its company benefits to draw candidates closer to the organization. If your company is unable to meet your desired salary increase now, you can consider negotiating other benefits such as flexible working hours, childcare allowance, improved health plans, training opportunities, or additional vacation leaves. Can you imagine having your company shoulder half of your childcare fees or overseas workshop costs? These benefits add to your overall compensation package.

Image Credits: unsplash.com

BOTTOMLINE

In conclusion, negotiating a salary increase can be challenging. However, with sufficient preparation and the right approach, it can also be a rewarding experience. Remember to do your research, highlight your accomplishments, be specific, invest in knowledge expansion, and consider other benefits. With these tips, you can successfully negotiate a salary increase and maximize your earnings in Singapore.

Sources: 1 & 2

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Communicating your desire to return to work after childbirth

mom and baby

Congratulations on giving birth and finishing your postpartum confinement.

If you’ve been a “career woman” all your life, you may be eager to get back to work after your 30-day confinement period.

So here comes the question:

Should you feel guilty about leaving your baby in the hands of a helper or not?

Well, I don’t think you should be because there’s nothing wrong with wanting to go back to work.

But, if you’ve never had a proper conversation with your spouse about the decision, it might pose a little conflict there.

It’s not always about financial issues

While having a single-income arrangement can put a strain on family finances, I think it’s not always about the money.

Let’s say your spouse has a decent-paying job and can support the family without you working, should you then make the “sacrifice” to stay home and take care of the baby?

Call me selfish but I won’t do it.

Yes, kids grow up fast and I may potentially miss the key moments of their growth if I’m a full-time working parent.

But, I didn’t come this far in my career to give up just because of family commitments.

So here comes the issue: talking to your spouse about it.

Share why returning to work matters to you

My reason to return to work after childbirth may differ from yours but ultimately, you want your partner to understand your stance.

Maybe you have big plans to upgrade from an HDB to a private property.

property showroom viewers

Image Credits: edgeprop.sg

Or perhaps you’re an extreme extrovert that thrives on being outdoors and having a work routine to look forward to.

Whatever the case, share why returning to work matters to you and come to a compromise if necessary.

Key considerations to have during the planning stage

There are inevitably many things to talk about but here are two I think should be settled:

  • Analyze your finances

Let’s say your husband’s income is satisfactory if you stay home to look after the baby 24/7. But if you decide to find a job, this means you will need someone to watch the baby.

Whether it’s leaving your little one to their ah gong/ah ma, considering half/full-day infant care, or hiring a full-time helper, that will mean some additional expenses every month.

Sit down and analyze your personal and family finances together, and see how to work things around.

  • Splitting the childcare responsibility

You’re only going to tire yourself if you parent alone. And you shouldn’t, anyway.

The baby belongs to you and your partner, and since you’re also heading out to work, then core childcare responsibilities should be laid out and split.

It’s impossible to spilt right down the middle but the main idea is to share the burden.

For instance, who’s going to drop off/pick up the baby after infant care hours, and how many “time-offs” does one get in a month (social life stuff)?

Seek parenting advice from others who’re on the same journey

You’re never alone.

Cliche but it’s true.

There are many people out there on the same journey as you are and I believe you will gain a lot from listening to the stories of others.

I found this active, private Facebook group called Stork’s Nest Singapore that has been around for more than a decade with over 14K members:

Stork's Nest Singapore Facebook page

Their posts are centered on babies/children/family/full-time helpers so I think it would be of great relevance to you.

As we close, I just want you to know that there’s nothing wrong with wanting to head back to the workplace. Gender-dictated roles have come so far and what our parents have gone through doesn’t have to dictate our future footsteps. It’s your life ultimately so whether you choose to be a “career woman” or a full-time mom, no one should have the right to point a finger at you and tell you what you should or shouldn’t do.

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How to get better at planning ahead in life

planning in a diary

Yes, I don’t deny that living in the moment is cool.

Life is short after all and there’s nothing wrong with wanna grab it by the horns and steering it in whatever way you deem fit.

But…

Planning ahead in life is equally important too.

You can’t just always leave it to luck to determine your course or go with the flow all the time.

It’s time to find out ways to help you get better at planning in life—short- or long-term.

What’s your “now”?

To get started, you need to know how to get started.

So I want you to access what’s your present situation, your “now.”

Simply put, where you are in currently in life and where you want to get to. Maybe it’s furthering your education, getting promoted to a managerial position, or making use of every public holiday to travel out and see a new place.

Aha, which brings me to bring this to your attention:

Travel Thursday: 3D2N Itinerary to Miri, Malaysia at $204.20/pax (flights + hotel)

It’s a new series I’ve started yesterday and if you love traveling as much as I do, but trying not to spend too much, check out the above article.

Okay, so back to the topic.

Wait, we’re still on point.

You see, planning also applies to traveling.

I used to plan for my travels months before so I get the best deal. But sometimes, life gets busy and we don’t have extra time to sit down and plan the nitty gritty.

And that’s okay.

That itinerary is prepared in view of Labor Day’s long weekend so we’re still some time away from it.

Buy your plane tickets and book your hotel ASAP if you want to avoid price hikes!

Where do you want to get to?

For those who are not travel freaks, let’s look at another example, shall we?

For instance, maybe you want to get promoted at work.

promoted at work

Image Credits: theladders.com

That’s one big goal, right?

It’s time to break down that goal into actionable mini-goals you can take to move closer to your destination.

If I were you, I would find out the criteria to get promoted.

Speak to your hiring manager about their plans to hire a manager or senior manager and what they are seeking in terms of qualifications, etc.

Or you can simply search job portals to see if your company has put up any hiring notices.

These job ads and their relevant descriptions are your blueprints for getting promoted.

That’s because you know what is required for you to be considered for a more senior position.

Just take a look at this recent job ad put up by Hilton for a senior manager position:

Hilton job ad

Whether it’s a degree, a graduate degree, or top-up certifications, you know where your next goal should be—start studying.

Are 5-year plans necessary?

I’ve read much advice asking people to draft a 5-year plan.

Honestly, I don’t have one and I think I’m doing not too bad. But it ultimately depends on you.

If you can’t even keep to a simple list of new year’s resolutions, then a 5-year plan is just going to flop.

I would rather have actionable plans for the first 6 months and then add more along the way than craft an ancient scroll that I won’t even relook at.

Okay, so let’s sum things up. To get better at planning ahead in life: reevaluate your present situation, think about where you want to get to and write down actionable steps you can take within the next 6 months to get things moving. One step at a time works better in the long term than trying to sprint and tire yourself out halfway, yeah.

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