Generating Income on a Friday evening!!!

It's been a while since I last went to a focused group survey, especially on a wonderful Friday evening when you can use the time to enjoy a nice dinner with your loved one, watch a movie with your friends or chill-out with your colleague. Instead, I chose to spend the time on a focused group survey I signed up for.

The remuneration has to compensate for the time loss, so I thought it was a good time to earn extra earnings for the month. For the past surveys I have gone to, my remuneration was not too bad (Extra Income). This time, I received $200 for a two-hours focused group discussion. That's money that is able to cover almost 15% of my monthly expenses together with my wife. There were also light refreshments which includes pizza, bread and some drinks. So I thought it was overall worth the effort, especially since the discussion takes place within distance from my home.

I am going to repeat again what T.Harv Eker used to say in his book. "Never Reject Money". It taught us the importance of every single income earned and saved and converting the rest into residual passive income. Respect money and it will respect you back.

It's now time to enjoy the rest of the evening on a Friday night ;)

My Transition from a Single to Married Life -- Financially

I see the way the human nature (for most people) transition over time in 3 big steps, from single to married life to having extended little minions in the family members.

As I am close to the end of having our own personal honeymoon world in these past 9 months of marriage, I would like to share on the difference between leading a single to married life before moving on to having little Bs bugging for daddy :)

Savings

Savings percentage is probably one of the major difference financially between leading a single or married life.

When I was single (until 9 months ago), I used to save home a huge percentages of my active income every month. If you see some of the expenses posts I've made in the past years, my savings rate usually goes as high as 80% to 90% each month. I rarely spent on anything major for myself except a couple of good food here and there, but my passive income usually takes care for it.

As expenses start to go up in my married life together with my spouse, savings rate naturally goes the opposite way. Based on the expenses we recorded in the past 9 months, I am still proud to say that we've kept the discipline and momentum going. My savings rate are these days down to about 50% but that is still a respectable figure after seeing articles of so many people who is earning so much but yet save so little.

Power-Play

Power play often plays a big part in a couple's marriage. This concept means that if one is earning more than the other, then he or she should contribute to the expenses ans savings more than the other.

For us, we like to keep it simple and not being too calculative about money. As long as both of us keep our expenses well in check and be honest with one another, I do not mind contributing to the expenses.

I usually allow for my wife's money that she earned to be spent on her desire consumer goods. So if she wants to buy groceries, we can use our money but if she wants a $5k bag, then she needs to earn that money first herself.

Common Goal

You can probably see that our two person's honeymoon world is not the longest in the world. 9 months is all we have and boom our little baby is here.

For this to happen, I often talked to her about budgeting the right amount if we are going to have kids in the future. The cost of living and raising kids in Singapore are probably not the cheapest and I think to be cautious we will probably need $700k to raise for one single child until graduation. If we want 3 children, then we multiply that figure by 3, which is getting ready for the future expenses that we are going to incur. It's think before action, just what everyone needs.

How is married life for you? Does discipline between couples matters the most?

Money $$$ - Difference between respect and disrespect

I came across these two pictures which I do not know fully whether it holds truth, but if it is then we know what is the kind of respect we do need to give these two different people.

Christiano Ronaldo, a player at Real Madrid football club is the current FIFA World Footballer of the Year who earns the highest wage amongst all other footballer in the world. Yet, the way he respects and donates his money deserves our respect.

Contrary, Liam Ridgewell, a player who plays for Westbrom uses his "excess" money as a tissue paper to clean his butt. 

What can we say about these guys? It does seem like it's his own money to begin with to do whatever he likes. Does that look a little overboard?

"Mar 14" - SG Transactions & Portfolio Update"

No.	Counters	No. of Lots	Market Price (SGD)	Total Value (SGD) based on market price	Allocation %
1.	FraserCenter Point Trust	30	1.73	51,900.00	21.0%
2.	Vicom	6	5.82	34,920.00	14.0%
3.	SembCorp Ind	5	5.26	26,300.00	11.0%
4.	SPH	5	4.10	20,500.00	8.0%
5.	Ascott Reit	15	1.18	17,700.00	7.0%
6.	FraserCommercial Trust	14	1.25	17,500.00	7.0%
7.	Neratel	20	0.73	14,600.00	6.0%
8.	First Reit	13	1.075	13,975.00	6.0%
9.	ST Engineering	3	3.76	11,280.00	5.0%
10.	Mapletree Greater China Commercial Trust	10	0.85	8,500.00	3.0%
11.	China Merchant Pacific	8	0.96	7,680.00	3.0%
12.	Plife Reit	3	2.33	6,990.00	3.0%
13.	Second Chance	13	0.465	6,045.00	2.0%
14.	Ascendas Hosp. Trust	7	0.73	5,110.00	2.0%
15.	Mapletree Logistic Trust	1	1.025	1,025.00	1.0%
	Total SGD			244,025.00	100.00%

I think I'm pretty much done with my Mar transactions hence the earlier post than usual.

For Mar, I have once again further accumulated Sembcorp Industries at the price of $5.25 after the stock bounced off from its resistance high of $5.50 earlier. It is the second consecutive month of accumulation of the same stock and you can see why I am bullish about the stock. The EDGE in this week edition also features Sembcorp and you can pick the news up in the newspaper. If you don't have the newspaper, you can refer to my previously posted content which features similar content it was talking about. With the addition, Sembcorp has now become my top 3 holdings just below FCT and Vicom.

In the same month, I have also divested off partially my holdings in SPH after it hits a high of $4.18. Looking back at today price, the selling looks a good deal as the stock has went up higher in the past few weeks. I'm still awaiting to see further updates from SPH to see if this is indeed a good long term hold.

My portfolio is now just somewhat $6k short of my biggest first cap milestone of $250k which I will be posting when is due. I hope I can reach them by the next 2 months as Apr and May tends to be the most fruitful months among all season, with bonuses and dividends coming in from both sides.

What about you? Any stocks you find interesting lately? Let's share...

Industry Outlook on Tourism until FY 2017

While browsing, I came across an article on how tourism will play a significant part in growing Singapore. For those investors who are particularly vested with hospitality stocks such as Ascott, Far East Hospitality Trust, CDL Trust, this comprehensive report will be extremely helpful to you.

Tourism

Tourism in Singapore is well supported by the established transport infrastructure, and Changi International Airport is one of the world's busiest, with more than 100 airlines and more than 6,000 weekly flights connecting Singapore to the Asia Pacific region and beyond. The airport handles around 50mn passengers a year and is undergoing major expansion that will allow it to benefit from anticipated tourism growth. Singapore also benefits from substantial sea connections via PSA Singapore Terminals, and modern road and rail networks.

The modern and efficient transport infrastructure means Singapore is advantageously placed to take advantage of increases in the tourism market, with inbound travel forecast to increase from 14.4mn in 2012 to 20.6mn in 2017. Outbound travel is also expected to increase, from 21.6mn annual departures in 2012 to 27.9mn in 2017. Considering Singapore's relatively small population, this is a particularly impressive rate of outbound travel and reflects the strength of the market.

Singapore's hotel market is already well developed, with most global hotel chains having at least some presence in the country. Despite limited real estate availability, the market is still appealing given the country's openness to foreign investment and the stability of the domestic economy. We therefore expect to see year-on-year increases in the number of hotels throughout our forecast period to 2017. At the same time, we also expect to see strong growth in receipts from travel-related expenditure as more tourists arrive in Singapore and as outbound travel expands. 

Inbound Arrivals

The majority of arrivals to Singapore are from Asia Pacific countries, with the region accounting for around 75% of arrivals by 2017. Following particularly high growth in 2010 and 2011 as major markets such as China experienced particularly buoyant economic expansion, we expect growth from the Asia Pacific region to slow but still remain strong over our 2013-2017 forecast period, between 5% and 9% per year. By 2017, we forecast that arrivals from the Asia Pacific region will surpass 14.9mn a year as increasing numbers of middle-class travellers in countries throughout the region have more disposable income for travel, and as travel links continue to improve.

Arrivals from the Middle East grew by an impressive 12.68% in 2013, as links between the Asia Pacific region and Singapore continued to thrive. Although growth is expected to slow, particularly towards the end of our forecast period when other destinations might replace Singapore in terms of popularity, we are still forecasting good growth overall, with arrivals from the region increasing from 144,690 in 2013 to 191,700 in 2017, representing a sizeable opportunity for growth. 

Europe, and to a lesser extent North America, are also expected to show arrivals growth throughout the forecast period. Arrivals from North America in particular are expected to slow towards the end of the forecast period as the economy of the US continues to suffer from the effects of the global credit crunch. Europe is therefore expected to remain the second most popular region of origin for travellers to Singapore, accounting for more than 1.1mn visitors in 2017, an increase of around 200,000 on the 2013 figure.

Countries from within the Asia Pacific region account for nine out of the top 10 markets by arrivals to Singapore. Indonesia is expected to remain the number one country of origin, with arrivals forecast to grow from 3.1mn in 2013 to more than 3.8mn in 2017. Strong growth is expected from all countries, although a slower rate of growth in terms of arrivals from Japan (as the Japanese domestic economy is expected to show only limited economic growth in the next few years) will mean that Thailand moves up the top 10 table by 2017.

The only country from outside the Asia Pacific region to make it into the top 10 is the US. Singapore has long been a popular destination and transit hub for travellers from the US, both business- and tourism-orientated. We expect this to continue, with arrivals forecast to increase to more than 569,500 by 2017. 

Top 10 Markets By Arrivals, 2010-2017

	2010	2011	2012	2013e	2014f	2015f	2016f	2017f
Indonesia	2,305.15	2,592.22	2,798.28	3,081.53	3,272.58	3,475.97	3,686.07	3,868.91
China	1,171.34	1,577.52	2,033.44	2,249.43	2,417.10	2,595.61	2,793.16	2,970.64
Malaysia	1,036.92	1,140.94	1,178.27	1,269.70	1,325.47	1,380.97	1,426.00	1,456.33
Australia	880.49	956.04	1,023.97	1,053.49	1,090.78	1,130.02	1,167.82	1,196.44
India	828.90	868.99	898.55	968.28	1,040.83	1,127.00	1,225.93	1,304.24
Japan	528.82	656.42	744.05	762.24	767.81	778.27	784.63	789.27
Philippines	544.34	677.72	653.89	720.22	752.60	788.23	820.64	842.97
US	416.99	440.58	476.70	513.31	529.60	544.78	560.48	569.52
Hong Kong	387.55	464.38	475.77	524.16	550.08	575.61	604.31	627.33
Thailand	430.02	472.71	464.39	507.98	549.54	593.29	641.40	686.19
e/f = BMI estimate/forecast. Source: BMI, Statistics Singapore

Hotels

As the number of tourists from outside Singapore increases, and domestic travel also expands, the country's hotel infrastructure is expected to grow accordingly. From 2014 onwards, BMI therefore expects the number of hotels and establishments to increase at a rate of more than 5% per year, reaching over 3,800 hotels by 2017. This is remarkable considering the limited geographic scope of Singapore's territory. The number of available rooms is expected to show a concurrent rise throughout the forecast period.

During this period we also expect the average length of stay to increase, and despite the increase in the number of hotels, the occupancy rate is also expected to remain steady at an impressive 87.1%. The high occupancy rate is a positive reflection of the potential for returns on investment in Singapore's hotel industry, and is one of the highest occupancy rates in the Asia Pacific region.  

Singapore Hotel Accommodation, 2010-2017

	2010	2011	2012	2013e	2014f	2015f	2016f	2017f
Number of Hotels and establishments '000	0.28	0.30	0.31	0.31	0.33	0.35	0.36	0.38
Number of Hotels and establishments '000 % change yoy	5.22	7.80	1.32	1.30	5.13	5.18	5.51	5.22
Average length of stay, nights	3.90	3.70	3.81	3.85	3.86	3.87	3.87	3.87
Average length of stay, nights, % change y-o-y	-2.50	-5.13	3.08	0.97	0.32	0.10	0.03	0.01
Hotel rooms '000	47.31	49.72	50.21	50.69	52.92	55.26	57.76	60.47
Hotel rooms '000, % change y-o-y	10.75	5.09	0.98	0.97	4.39	4.42	4.53	4.68
Occupancy rate %	85.10	86.50	87.00	87.08	87.09	87.10	87.10	87.10
e/f = BMI estimate/forecast. Source: BMI, Statistics Singapore, Singapore Tourism Board. Occupancy rate = room occupancy

Tourism Industry Risk/Reward Ratings

This is an evaluation of the sector's size and growth potential in each state, along with broader industry/state characteristics that may inhibit its development. The reward ratings for tourism take into account the numbers and percentage growth of tourist arrivals over the past year as well as our forecasts for growth over 2013 and 2014. Singapore has recently experienced steady growth in tourism arrivals, and while we expect this to continue, limitations in the international economy could depress figures. Overall tourism receipts and hotel occupancy were similarly enhanced and offset, and this has been factored in accordingly, giving Singapore a tourism market score of 71.67.

Asia Pacific Tourism Risk/Reward Ratings

	Rewards			Risks
	Limits of potential returns	Tourism market	Country structure	Risks to realisation of potential returns	Market risks	Country risk	Tourism rating	Rank
Hong Kong	75.32	83.33	63.29	77.54	79.59	75.86	75.98	1
Thailand	75.99	85.30	62.04	60.75	68.09	54.74	71.42	2
Australia	65.83	61.67	72.06	82.42	78.40	85.72	70.80	3
Singapore	65.29	71.67	55.73	80.55	85.47	76.52	69.87	4
Macau	69.00	76.67	57.50	67.20	65.00	69.00	68.46	5
South Korea	67.93	66.67	69.83	66.51	70.39	63.33	67.50	6
Taiwan	68.62	75.00	59.04	64.09	73.21	56.63	67.26	7
Vietnam	61.91	61.67	62.26	55.57	65.19	47.70	60.00	8
New Zealand	49.88	26.67	84.69	83.25	76.65	88.66	59.89	9
Malaysia	54.33	50.00	60.83	66.94	74.10	61.09	58.11	10
Myanmar	55.82	51.67	62.04	61.63	62.39	61.00	57.56	11
Sri Lanka	57.66	60.00	54.14	50.31	63.77	39.29	55.45	12
Japan	48.12	29.17	76.55	68.87	70.08	67.88	54.35	13
Philippines	51.93	51.67	52.33	56.44	70.00	45.34	53.28	14
Laos	56.48	61.67	48.70	41.76	63.88	23.66	52.06	15
China	48.02	43.33	55.05	58.61	76.51	43.97	51.20	16
Cambodia	55.89	65.00	42.21	36.25	33.02	38.90	49.99	17
India	42.22	40.00	45.54	46.96	36.13	55.82	43.64	18
Indonesia	37.97	35.00	42.41	50.34	61.77	40.98	41.68	19
Pakistan	38.28	40.00	35.69	44.91	59.79	32.73	40.27	20
Bangladesh	36.01	25.00	52.53	45.98	68.12	27.87	39.00	21
Source: BMI

The future of the tourism industry in Singapore is looking very positive. Increases in inbound and outbound travel, as well as improvements to the country's transport infrastructure, investments in hotel expansions and higher travel receipts, will boost the overall industry value throughout our forecast period to 2017. With a strong domestic economy and stable political environment, the signs of growth make Singapore an attractive prospect for foreign direct investment.