At SGMoneyMatters, I publish a weekly wrap-up of the most important financial matters this week to help you invest well and retire with style. Because ain’t nobody got time for sifting through mediocre financial reads.
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Here are the highlights of the important financial matters this week:
- Common tax filing mistakes of property owners
- The latest T-bills yield dropped again
- Foreign investors pulling out from China’s tech company
#1 Common mistake in filing property income tax
If you own a property, it is crucial to understand the common mistakes that property owners make when filing their income tax returns such as:
- Failing to declare all rental income
- Claiming incorrect property tax rates
- Not filing tax returns on time
- Under-reporting rental income
If you make any of the mistakes, the penalties for such mistakes include hefty fines.
There is a good straits times article recently to discuss the real cases. It discussed real cases where property owners were caught under-reporting rental income. You must be aware of these mistakes and avoid them when filing your income tax returns.
If you haven’t already, check out my previous article about income tax relief and deduction too.
#2 Latest T-bills yield drop again
Singapore’s financial markets have been abuzz lately with the news of the drop in the latest Treasury bills (T-bills) yield.
As some of you may recall, a few months ago, I mentioned that T-bills yields would drop from the previous 4% high. Here’s a series of changes that happened:
- March 21, 2023, the T-bill yield dropped to as low as 3.65%;
- It then increased to 3.85%;
- But has now fallen back to 3.75% in the latest auction.
You can see it in the chart above.
What does this mean for investors?
Well, people are starting to talk about Singapore Savings Bonds (SSB) as a way to lock in long-term yield. But have you heard of the Singapore Government Securities (SGS)?
The current low-interest-rate environment makes SGS bonds even more attractive than last time. With the yield curve flattening, longer-term bonds are worth looking to lock in higher yields.
I think longer-tenure SGS bonds are presenting a good investment opportunity now, I will talk more about it soon. Stay tuned.
#3 Foreign investors pulling out from China’s tech company
The Chinese tech industry has gone through a roller coaster ride since the tech crackdown.
China has been trying to reassure the market this year after the tech crackdown in the past two years, but foreign investors are still pulling out of investments in China’s technology sector. In two latest news:
- As of January this year, Prosus said it sold more than 193 million Tencent shares for a net proceed of $7.2 billion
- SoftBank Group Corp has moved to sell almost all of its remaining shares in Alibaba
So, what does this mean for investors?
If you refer to my previous article, I mentioned that China’s intention was to ouster foreign investor ownership in China tech companies and that investors should be cautious about China stocks despite many people saying it is undervalued.
For now, I remain cautious about China’s stocks as I feel that the investors’ confidence is still low.
I hope this article has provided some useful information for you. Feel free to comment below.