Living and Investing in Havens

When trouble strikes elsewhere, a city state like Singapore watches. Others also watch Singapore. Singapore gains from being and/ or perceived to be a beacon of relative governance/ financial/ educational/ personal/ health/ economic/ trade safety, compared to her competition. Now her leadership has also to seriously grapple between her Asian cultural roots and Western colonial links, in a geopolitical landscape that seems to heighten tensions and more interaction between the East and West. Singapore's strategic characteristics, her geographical size and her image can be double edged blessings and risks. She attracts attention, she attracts investment, she attracts portable funds always waiting for a place to park (until the next higher return). Singapore can also arouse players which may have designs on her to embed their vested interests. It can be due to her strategic location at the nexus of significant shipping, airline and trading routes. It can be due to her mature, dynamic and relatively more reliable reputation as a financial centre. It can be her government's consistent readiness and planning to overcome most present and future risks. Singapore also is sited centrally in the Indo-Pacific region, the world's fastest growing region. She is ever conscious and alert to rising competitors, whether in the most prominent Bay areas of the USA and China, or in the petroleum rich and ambitious city states of West Asia. Behemoth financial centres like London, Tokyo, Shanghai and Hong Kong have always loomed large historically when Singapore was not so developed. Those four cities incurred extensive damage and loss in the huge wars of the 20th century, but so did Singapore. Lower tax regimes in Singapore, compared to OECD nations, can make her investment attraction and advantage more like tax havens. In fact, Singapore does better in structuring her society than most atypical small city or island tax havens. Key features that top most lure expats to Singapore can be a one stop corporate shop, organised infrastructure, high standard education/ medical facilities and relative personal safety. Any expat living or investing in tax havens can move away from their original home nations - and they do so for lower costs of living, taking advantage of currency exchange rates, enjoying a different lifestyle, jet setting and having a better climate. Such havens structure their society to attract such expats. Dubai has under stated its war risks in a volatile geopolitical region. Singapore is serious in better managing its humid weather conditions. Tax havens in Europe are used to navigate through the historical confrontations and conflicts - and they can be little kingdoms, unassumedly not catching the attention of most critics or opposition. The Carribean isles invite investors to soak in warm weather vacations as well. Dubai has extreme high temperatures but that is mitigated by energy consuming air conditioning ( like in Singapore and Hong Kong). Expats, whether they are media influencers, cashed up retirees or corporate high flyers, often need a variety of offerings in leisure night life activities, contemporary arts, unique architectural surroundings and more. Some tax havens do also stand out in offering vibrant business opportunities, critical networking and excellent internet reliability. The dark side of such vibrant places is the unavoidable requirement to import lower paid migrants willing to undertake the so called menial jobs, which are critical to the running of society but often hidden away from media attention or acknowledgememt by authorities. Hong Kong may not be seen as organised as Singapore, but has benefitted much as a financial centre and trade conduit to the burgeoning hinterland of Greater China. Now more well integrated with an ever prosperous and technologically advanced Motherland, Hong Kong now also competes with dynamic cities within China itself. The Swiss adopted a vital stand of neutrality to differentiate themselves from the often shaky geopolitics in Europe. By so doing, Switzerland instantly offered better stability and reliability to investors and those seeking minimisation of risks. On top of the Swiss cake, the country offered governance through a republic. These are the layers intentionally built under the star feature - financial discretion and management ability. No place is perfect - and what is more significant is how a society and government highlight their strong points and manage risks for their vulnerable ones. #yongkevthoughts

The Coming Summer of Discontent

 The Mr Scrooge Predictions for the coming Antipodes summer 2022/2023. 

1.   A new wave of Covid strains is likely to cause spike in infections across greater Sydney, Melbourne and Brisbane soon. Case numbers will continue to be under reported, more people can experience long Covid and we are approaching the third annual anniversary of the arrival of the now increasingly unmentionable matter. 

2.   Many eating places of varying set ups across Australia will be closed for a few weeks after Christmas. Shortage of vegetables and other fresh produce are likely to hit supermarkets and eating outlets across NSW and Victoria, as Christmas 2023 approaches, due to recent widespread flooding over many farms. 

3.  The months long continuing dispute between Nsw State Government and train workers for Greater Sydney have risks of getting worse. 

4.    Prices of daily consumption items will be going up further, like for petrol, groceries, human services, insurance premiums, utility usage and supply charges, airfares, private school fees and child care services. 

5.    Warmer and radiating dry weather can make afternoons unbearable going out in coming months, unless one is determined to have that tan and risk the health side effects. 

6.     Food, grocery and other delivery service charges will increase.  This is one example of the lack of labour supply for many sectors that rely on cheaply paid human resources to deliver the final stage of consumer interface transactions. 

7.    La Nina is forecast to hang around in the coming season - with some of the lingering uncertainty, more of the wet in some states, more heat in the west of the Australian continental island and generally more of the same like in the past 12 months. 

8.    The downstream impact of the huge battle for reliable supply of smart chips is yet to be fully played out. 

9.      Investment options for players of all funding ability sizes will change over the next 3 months, whether decision makers are on holiday or not.  The arrival of recession in the UK; the need to draw a line on the books before the festive season and the close of the year;  the staged increase in interbank rates by several central banks; the continuing rollercoaster ride of crypto currency; the changing return on bonds; the shifting attitude for small caps; the rise in exchange value of the USD; and the outlook for the Chinese economy are all still relevant in the heady mix of the cauldron. 

10.    Using airports will further embed our perceptions of their disorganisation; the lack of connect between corporate planning, purported marketing image and the actual customer experience;  the greater investment by airport operators/ owners in vehicle parking spaces rather than anything else;  of the strong need by airlines to fill up every passenger seat of every flight; and the silo effect and divide between Immigration, Airline and Customs as a passenger goes through the process before and after a flight. 

Okay, I better move on to brighter things. Lol. 

#yongkevthoughts