What is SIBOR? On Housing Loan

Posted by admin
on March 30, 2015

If you have never heard of SIBOR before, you probably have not been reading the news lately or have no interest at all in getting a house for yourself. Yes, the increasing SIBOR has been all the rage lately and it is no wonder. Many people who have taken out housing loans pegged to SIBOR are feeling the pinch now as rates continue to rise.

What exacty is SIBOR? Let us try and explain it as simply as we can.

It stands for Singapore Interbank Offered Rate. It is fixed by the Association of Banks of Singapore and is an interest rate that is used between all the different banks within the Asian time zone when banks borrow from each other. Yes, banks do borrow funds from each other and this is the rate that they follow. SIBOR is regarded as a benchmark be it for the borrowing side or the lending side within the financial arena in asia.

What is the significance, you may wonder? You may not know it but home loans pegged to SIBOR have been popular with Singaporeans who are looking to finance their newly bought homes. Why is that so? Because, SIBOR has been believed to be much more stable than any other rates because of the relatively strong Singapore dollar. The loan option that is pegged to SIBOR is very much popular with home owners who buy property for their own usage. With short-term properties investors, however, it may not be their first choice depending on the market at the point of entry.

How is SIBOR faring lately? Not so good. In fact, there have been much grumbles about how SIBOR rates have been soaring and fear to not be stabilising any time soon. Well, that is another nugget of news for another time.

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Lee Kuan Yew passes away but Singapore stock market holds strong

Posted by admin
on March 25, 2015

More often than not, when a country leader passes away, the stock market will take a hit. As news broke of Singapore’s founding Father, Mr Lee Kuan Yew’s death in the wee hours of Monday morning, the Straits Times Index (STI) only closed 0.07 per cent lower. The STI is the benchmark index, indicative of Singapore’s stock market. In fact, the stock market remained mostly positive.

Mr Lee Kuan Yew had earlier been hospitalized for a long period of time and investors had feared that the stock market will be hit. However, according to most analysts, the impact on the stock market is expected to be minimal.

Why so?

Maybe it is exactly Mr Lee Kuan Yew’s foresight, steadfastness and strength that Singapore, regarded highly as a financial hub, stands on such firm ground. In fact, according to the CEO of DBS, having such a strong financial market is something that is unique to Singapore.

“Markets are deep and liquid. Our regulations and regulators are well respected. No wonder then, that what in a normal country might cause tidal waves of alarm will go through in the context of Singapore quite smoothly,” he said. (CNA, 23 Mar)

He also said that “There is recognition of the talent depth of this country, there is recognition of the transparency on the non-corrupt nature of the government. There is a recognition of the fact that this country has tenacity and the financial system has endurance. We will go on, we will build on the legacy and there is no doubt in my mind that Singapore will continue to be one of the great global financial centres of the century,”

Mr Lee Kuan Yew’s passing had set a gloom over the nation and it is evident that Singapore had deep love and respect for her founding father. Leaders all around the world has also been leaving condolences messages for Singapore and the Mr Lee’s family.

Will Singapore continue to prosper and hold its ground in the big world after Mr Lee’s era? This remains to be seen but with Mr Lee’s foresight and perseverance in building the nation from third world to first, the future of Singapore looks bright.

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