Trump Signs Executive Order for Crypto-assets

 The deal is done... or is it?

Throughout his career, Trump has been known for leveraging his position to negotiate deals that benefit his personal interests and those of his companies, whether through branding, real estate ventures, or business partnerships. He often seeks to position himself in ways that maximize personal or corporate gain, sometimes at the expense of broader policy goals or public perception.

For example, Trump’s real estate deals have often been structured to create tax advantages or favourable financing terms for his businesses, and his brand has been a central component of his wealth. Even during his presidency, he continued to hold business interests that he did not divest, leading to concerns about conflicts of interest and how his personal wealth could intertwine with policy decisions.

Given this track record, it is crucial to factor in the possibility that his interest in crypto might be influenced by both broader economic strategy and personal financial considerations.

Why the crypto policy shift?

Firstly, crypto investors, companies, and executives made significant contributions to Trump’s 2024 campaign. These financial support could be seen as a motivating factor behind his pivot toward pro-crypto policies. For Trump, these donations represent not just support for his political goals, but also an alignment with an industry that has shown potential for explosive growth. The crypto industry is inherently speculative and can be seen as a high-risk, high-reward area - exactly the kind of sector where Trump, with his business background, might see opportunities for personal and political gain. In other words, supporting crypto could be a way to align with wealthy donors, investors, and executives who stand to benefit from an environment that is more favourable to digital assets.

Then, the Trump’s promise to keep 100% of Bitcoin holdings acquired by the U.S. government further emphasizes this financial angle. Given his history of maximizing financial leverage, Trump could see these assets - whether seized or acquired through other means - as potential vehicles for both wealth accumulation and political leverage. Holding a national crypto stockpile could also serve as a way to ensure that the U.S. maintains influence over the global crypto market, an area where Trump might want to position himself as a key figure. If the U.S. government were to amass significant Bitcoin holdings, it could potentially benefit Trump’s network of allies or supporters in the crypto industry.

Many of the individuals appointed to leadership positions under Trump’s potential administration are aligned with pro-crypto ideologies or have close ties to financial sectors with strong crypto interests. Appointing figures such as Scott Bessent (a hedge fund manager with ties to the crypto industry) to lead the Treasury Department signals that Trump is looking to support the financial structures that benefit from cryptocurrency's rise. As Trump himself has seen the financial benefits of maintaining close ties to wealthy business leaders, it is possible that some of his crypto-friendly moves are designed to protect or enhance the interests of key business figures or entities connected to him or his broader political network.

Finally, Trump’s ventures - real estate, branding, and licensing deals - could also potentially benefit from the rise of cryptocurrency. The growing intersection of traditional finance and crypto means that Trump’s companies could eventually tap into blockchain technology, digital payment systems, or other innovations tied to the crypto sector. For example, real estate transactions using crypto could become more common, and Trump’s properties could become key players in this new financial ecosystem. By promoting favourable crypto policies, Trump might be positioning his businesses to capitalize on these trends.

Given Trump’s business history and potential financial entanglements, there is an obvious concern about conflicts of interest. If U.S. policy shifts in favour of crypto, benefiting companies or individuals with ties to Trump, there could be questions about whether his personal financial interests are unduly influencing public policy. 

The fact that crypto executives contributed heavily to his campaign could raise concerns about whether the policy shift is a direct result of those contributions. Critics might argue that the administration is aligning its policies to benefit donors and major players in the crypto space.

If Trump or companies associated with him have financial exposure to cryptocurrencies (either through direct investments or partnerships), there might be concerns that his policies could unfairly favour those assets, especially in light of his past efforts to position himself for personal financial benefit through public office.

By appointing figures like Paul Atkins, who has a history of opposing heavy regulation, Trump could be signalling that his administration is more likely to push for a "hands-off" approach to crypto regulation. While this may benefit the industry by fostering innovation, it could also benefit Trump’s financial interests if he has personal stakes in businesses that stand to gain from less regulatory oversight.

While the executive order reflects a broader strategic interest in fostering crypto innovation and securing U.S. leadership in the digital asset space, it is important to acknowledge the potential financial motivations driving these decisions. Trump’s history as a dealmaker who leverages his position to benefit personally means that the shift towards pro-crypto policies may not solely be motivated by ideological or economic factors related to national interest. It is possible that personal financial interests, donor support, and the potential for future wealth creation could be influencing his stance on crypto.

In this light, Trump’s pro-crypto policies may not just be about promoting the U.S. as a leader in blockchain innovation but also about creating an environment where his financial networks can continue to thrive. Given his track record, it would be prudent to critically assess whether these policies are more about advancing personal or political gain than about the broader economic benefits they claim to offer.

OCBC 365 Credit Card: Dismal Cashback When Minimal Spending of $800 is Unmet

The OCBC 365 Credit Card offers attractive cashback rates, including up to 6% on dining, groceries, and online shopping. However, its $800 minimum spend requirement for eligible transactions each month can be a significant hurdle at times.

While the cashback potential is high, meeting the $800 minimum spending threshold can be sometimes difficult. Recently trying to optimise my spending, I ended up with in a situation where regular expenses like dining and groceries did not add up to $800, and not all purchases qualify for cashback. For instance, spending on medical bills, entertainment, and certain services do not count. 

The pressure to increase unnecessary spending then arises, which can lead to financial strain or debt accumulation.

The real downside of not meeting the $800 threshold is the dramatically reduced cashback. If you fail to reach the required spend, there is only 0.3% cashback on all eligible transactions, which is far less than the card's usual 6% for dining, groceries, and online shopping, or even the 3% on recurring bills.

This sharp drop in cashback can make the card less worthwhile, especially for those who may not regularly hit the $800 mark. Therefore, if you’re unable to regularly meet the minimum spend, the rewards earned may just not be attractive.

While the OCBC 365 Credit Card offers great rewards for those who can consistently meet the $800 minimum spend, failing to do so leads to disappointingly low cashback. For some, the difficulty of hitting this threshold may outweigh the benefits, making it important to carefully evaluate if this card suits your spending habits.

Investing in Pre-Launch Crypto Coins

Diving into the world of pre-launch crypto coins, or presales, is like stepping into a treasure hunt filled with both potential fortunes and lurking pitfalls. For adventurous investors eager to get a head start on ground breaking projects, this avenue offers both thrilling opportunities and significant risks. The landscape of pre-launch crypto coins is dynamic and offers tantalizing yet unpredictable chances of striking it rich.

The Allure of Pre-Launch Crypto Coins

Bargain Prices: Imagine scooping up digital tokens at a markdown before they hit the mainstream market. That's one of the prime attractions of pre-launch coins—they offer the chance to buy in at a potentially lucrative discount, setting the stage for impressive gains if the stars align.

Exclusive Early Entry: Early birds gain access to promising projects, unlocking the door to potential high returns and enticing perks like bonuses or additional tokens. This exclusive vantage point could be your ticket to substantial profits if the project takes off.

Skyrocketing Returns: History has shown that successful pre-launch coins can experience explosive growth. For instance, savvy early investors in giants like Ethereum and Ripple reaped remarkable rewards as these coins soared on major exchanges.

Navigating the Risks

Fraud and Scams: The crypto realm can be a minefield, teeming with scams and fraudulent schemes. With regulation still catching up, investors must arm themselves with thorough research and vigilance to dodge these traps.

Wild Volatility: Brace yourself for a rollercoaster ride—pre-launch crypto coins can experience dramatic price swings, testing investors' nerves as their holdings fluctuate wildly.

Project Viability: Not every venture crosses the finish line. Many new cryptocurrencies struggle to gain traction, and investing in a project that doesn't make it could result in a total loss of your capital.

Liquidity Challenges: Want to cash out quickly? Not so fast. Pre-launch tokens might not be easily tradable, leaving investors in a bind if market sentiment sours.

Cybersecurity Concerns: With the crypto world under constant threat from cyberattacks and hacking, safeguarding your funds and ensuring strong security measures in projects becomes paramount.

Spotlight on Recent Presales

ApeMax (APEMAX): Dive into "Boost-to-Earn" staking with ApeMax, where rewards flow even during the presale phase. Its integration with Binance Smart Chain promises efficient transactions.

Bitcoin Minetrix (BTCMTX): Harness the "Stake-to-Mine" mechanism to earn Bitcoin on the Ethereum network, aiming to ease sales pressure through this innovative feature.

eTukTuk (TUK): Transforming developing nations with eco-friendly blockchain solutions, eTukTuk is revving up plans for Power Staking, a Layer 2 Sidechain, and impactful charity initiatives.

Meme Kombat (MK): Embrace the thrill of Play-to-Earn gaming intertwined with meme coin excitement, offering enticing staking returns and a presale haul of over $9 million.

Sponge V2 (SPONGEV2): Following the success of $SPONGE, Sponge V2 is creating buzz with plans for a Play-to-Earn game and exchange listings, building on its predecessor's momentum.

Rolling the Dice: Can You Get Rich?

The quest for riches through pre-launch crypto coins is fraught with uncertainty, hinging on project success, market tides, and investor timing. While some have hit the jackpot, others have faced stark losses. Approaching these investments armed with caution and a deep understanding of the risks is essential.

Venturing into pre-launch crypto coins promises a thrilling ride, with the potential for dazzling rewards shadowed by considerable risks. Prospective investors must embark on this journey with diligent research, a keen eye on project viability, and readiness to accept full investment loss. While the path to fortune is unpredictable, a savvy and informed approach can help navigate this exhilarating yet perilous landscape.

Major Catalysts for Crypto Surge

The recent surge in cryptocurrency prices can be attributed to several key factors that have collectively boosted market sentiment and investor confidence.

 

Political Developments: The election of Donald Trump as President-elect has significantly influenced the crypto market. His victory has sparked optimism about potential pro-crypto regulations in the U.S., including promises to establish a Bitcoin strategic reserve and reform the SEC's leadership, which many in the crypto community view as favourable for industry growth.

Increased ETF Inflows: There has been a notable resurgence in inflows into U.S.-based Bitcoin exchange-traded funds (ETFs). Following a period of outflows, these funds recorded significant net inflows, with Bitcoin ETFs experiencing over $600 million in inflows on election day alone. This influx indicates growing institutional interest and confidence in cryptocurrencies, contributing to rising prices.

Market Sentiment and Technical Factors: The overall market capitalization of cryptocurrencies has surged, reaching levels not seen in months. This rise is partly due to a technical rebound from previous lows, with Bitcoin breaking above significant resistance levels, signalling bullish momentum. Additionally, the crypto fear and greed index has shown "extreme greed," indicating heightened investor enthusiasm.

Macroeconomic Influences: Broader economic factors, such as expectations of potential interest rate cuts by the Federal Reserve, have also played a role. Lower interest rates typically enhance risk appetite among investors, making assets like cryptocurrencies more attractive compared to traditional safe havens.

Retail Adoption and Market Education: There is an increasing trend of retail adoption as more individuals become familiar with cryptocurrencies and their uses. Enhanced accessibility through user-friendly platforms and educational resources has contributed to this growth, further driving demand34.

The combination of favourable political developments, increased institutional investment through ETFs, positive market sentiment, macroeconomic factors, and rising retail adoption has created a robust environment for cryptocurrency prices to rise. As these trends continue to evolve, they may sustain the upward momentum observed in the market.

Singapore Exchange (SGX) vs. S&P 500

For Singaporean investors, the age-old question arises: where to park your capital? Two popular options are the local Singapore Exchange (SGX) and the behemoth S&P 500, representing the US market. Let's delve into their performance to guide your investment decisions.

Understanding the Titans

• SGX: The Singapore Exchange is a premier bourse in Southeast Asia, offering a diverse range of assets like stocks, bonds, derivatives, and Exchange-Traded Funds (ETFs).
• S&P 500: The S&P 500 tracks the performance of 500 leading companies listed on US stock exchanges, representing a significant chunk of the American economy.

Performance Check

Historically, the S&P 500 has been a strong performer, averaging around 10% annualized return. However, past performance doesn't guarantee future results.

Looking closer, you'll need to consider a specific timeframe. Here's a brief comparison:

• Short Term: Both markets can experience volatility. Recent events can significantly impact performance in either direction.
• Long Term: The S&P 500 has generally shown more consistent growth over extended periods.

Beyond Numbers

Performance isn't the sole factor. Here's what else to ponder:

• Diversification: SGX offers exposure to Southeast Asian markets, providing diversification beyond the US.
• Investment Style: The S&P 500 is a passive investment, mirroring the market's performance. SGX allows for picking specific stocks or ETFs that align with your investment goals.
• Currency Fluctuations: Since SGX trades in Singapore Dollars (SGD), currency fluctuations can impact returns for foreign investors in the S&P 500.

The Takeaway

There's no one-size-fits-all answer. Both SGX and S&P 500 offer distinct advantages. Consider your risk tolerance, investment horizon, and diversification needs before making a choice. Consulting a financial advisor can provide personalized insights for navigating your investment journey.

Panic Selling, Panic Buying

The worst thing one can do is to sabotage their own financial plans by engaging in the senseless behaviour of panic selling and panic buying. The recent financial turmoil arising from the subprime crisis in the US has unnerved many investors. Just months ago, many investors were still looking at increasing their investments for fear of missing out on the attractive returns that were being dangled by the various well performing stock markets.

Why is it that we find it so much easier to invest our money when markets have headed up significantly and find it so difficult to invest our money when markets are depressed and downside is limited?

Much research had gone into analysing such investor behaviours and it largely boils down to panic buying and panic selling.

When markets are on an uptrend, the good news abound and money appears to be readily available on the tables for anyone willing to reach out for it. Investors are afraid of losing out on pocketing the potential profits with each day's delay. Speculators rush into the markets in panic buying and all sorts of equities, blue chips or not, rise across the board. Yet, when stocks are chased to sky high valuations, not many see the warning signs that whatever goes up must come down, and continue to pour cash into these already risky investments, priming themselves for major losses once the market corrects the excesses.

When the market inbalances start to even out with corrections, people rush to liquidate their investments. Granted, this is sensible behaviour for the protection of the value of the assets will enable one to re-enter the market at a later date. The problem perhaps, is knowing when to re-enter the market. When is the best time to invest again?

Panic selling results in stock valuations falling below their reasonable valuables and once investors have confidence that the valuations are extremely compelling, it should be a good time to start investing in the market again. No one knows when exactly stock markets bottom and neither will anyone know how long bearish sentiments will prevail. However, one thing history has shown us - After a period of negative sentiments and stock prices had been depressed, it is only a matter of time before stocks rebound. As long as time is on the investors' side and free cash is not being earmarked for any use in the short term, it is better to bargain pick some fundamentally solid stocks and hold on to them.

In each investor's lifetime, it is expected that there will come various opportunities whereby the market is put up for sale at fantastic bargains. The major market crashes like US Sub-Prime Crisis in 2008, SARS in 2003, dot com bubble of 2000, Asian Financial Crisis in 1997, Black Monday in 1987, Wall Street Crash in 1929... all presented superb opportunities for the brave to go against the panic selling of the masses. Investors should be rational about investing in the stock market. When the upmarket departmental store launches an exceptional sale, people rush in to grab all sorts of merchandise. When the stock market falls to extremely depressed levels, people are avoiding the market instead of picking up good discounted shares that will bring much happiness once the financial storm blows over?

In the stock market, money is not made by following the crowd. Panic selling and panic buying is not going to help grow the investment portfolio spectacularly. Exceptional returns are only available to those who are able to see beyond the fears of the common investor. Who dares win.

Investing in Bear Markets

The financial meltdown arising from subprime losses may have been the first event in a multi year economy downturn. Property prices are down, foreclosures are up, banks are getting more selective in their loans and stock markets have been on a downward trend.

Is the bear market already upon us? In the near short term, it is highly probable that stock markets are going to continue their downward trend though some bounces will occur when oversold levels are perceived.

Is it time to exit the market and hold cash instead? Cash is king but such downturns are the best investment opportunities for those with spare cash on hand. Pick up stocks with solid fundamentals. During the last downturn, the market darlings were companies with strong balance sheets or a large cash pile to back them up. Blue chips that regularly paid out dividends were also highly preferred because of the stability they accorded. It even spawned unit trusts such as First State Dividend Advantage and SGAM Singapore Dividend Growth.

Pick up stock bargains now. Go contrarian and the rewards will be reap when the economy turns around and fairly valued companies shine through.

CPF Changes for an Ageing Population

Prime Minister Lee unveiled quite a few proposed changes to the Central Provident Fund (CPF) Scheme during his national day rally speech and the changes have been debated in Parliament recently.

Quite a few changes have been proposed to address the ageing population the country is facing. Top of the list are measures to encourage re-employment of older workers, followed by increases in the CPF interest rates and lastly, and most controversial, measures to make savings last for life expectancy.

While official statistics show that more people are living till an older age, the cold hard facts do nothing to address the perceptions that these statistics do not apply to the individual. The common view on the ground is still that the government has once again moved the goalposts and made our money out of reach; everytime one moves near the markers where we can lay our hands on OUR money, the criteria is moved so that the marker moves that slightly further out of reach... Will people ever live to enjoy the fruits of their many years of labour, to pocket the money that had been kept out of their reach for decades.

Already, today's retirement age at 62 is being moved to 67. The age of 67 is definitely not cast in stone. In another decade or 2, will it be possible that the retirement age is moved even further to 70 years old or beyond? I doubt it not. It may even eventually reach a stage where retirement age is scrapped and people are given the option to work till the day they drop dead.

What about increasing the interest rates on CPF savings? An additional one percent on the first $60,000 in the CPF accounts will definitely be welcomed but the catch is that the initial $20,000 of the Ordinary Account can no longer be invested under the CPF Investment Scheme for higher returns. Furthermore, the Special, Retirement and Medisave Accounts (SRMA) will no longer offer fixed interest rates but instead be pegged to a long term bond rate.

Not being able to invest the first $20,000 of the OA is likely to impact the potential returns that can be obtained by those who are financially savvy. Utilising the money to buy into stable dividend-paying blue chips is highly likely to yield returns beyond 3.5%. The long term bond rate is also an unknown. Will it better the 4% that CPF currently pays on the SRMA? While past data appears to indicate that CPF members will be able to expect similar or better returns, the standard disclaimer that appears on brochures of financial products must be kept in mind - Past performance are not necessarily indicative of future performance.

The one proposal that really got everyone talking is that of making longevity insurance compulsory. While this is still tentative and a committee had been setup to look at it, I really hope that the committee will eventually propose that it not be implemented. The basic idea is to get every CPF member to buy into an annuity scheme so that those who do live beyond 85 will be guranteed an income for life. Yet again, there is a catch to this. The proposal in its current form will see CPF members paying for the annuity and getting nothing back if they die before the age of 85. Why should the government stipulate how I should use MY money to subsidise others whom had not planned for their own longevity? The intention behind CPF was that individuals will be self sufficient and fund their OWN retirement with the government stepping in to help those who are unable to help themselves. The oft quoted slippery slope of welfare appears to be being tested here. While sounding selfish, there is no reason why I will want to fund the longevity costs of someone whom I do not know. If I die, my assets should be directed to the benefit of those related to me, those whom I will be most concerned about.

Personally, with the exception of the longevity insurance, I am fine with the CPF changes proposed. In reality, CPF is a retirement scheme that will not suffice to fund a comfortable retirement. For those who can, they must make alternative plans to ensure a reasonable standard of living upon retirement. Eventually, with the constantly moving criteria, being able to lay our hands on the CPF money needs to be considered a bonus. But! DO NOT dictate that I should spend my hard earned money funding the needs of someone whom had not taken pains to need his own retirement needs.

POSB MySavings Account

Never before have I been so keen to take up a promotion I received via email. Within 30 minutes of receiving the POSB MySavings Account emailer, I was drawn to the flexibility and higher interest rates being offered and submitted my application online for an account.

What exactly is it about MySavings Account that is so attractive? For a huge bulk of us, POSB/DBS had remained our main bank because of the legacy of POSB being a people's bank. That implies that much of our cash is lying in standard savings account earning measly 0.25% p.a. interest. MySavings Account actually offers a way out by dangling special interest rates as high as 1.5% per annum, 6 times higher.

$50 - $290 : 0.45%
$300 - $790 : 1.00%
$800 - $1,490 : 1.20%
$1,500 - $3,000: 1.50%

What's more is that there is flexibility to increase or decrease the monthly savings amount and even amend the monthly savings date anytime.

I went for the 2nd tier amount in order to enjoy the 1% interest rate but there is a small catch for those who bother to read the fine prints. Depositors who open a MySavings Account with at least $420 monthly savings amount can get a $42 dining voucher at Raffles The Plaza but the cost of the gift may be debited if the MySavings Account is closed or the monthly savings amount is reduced within a year after account opening. My advice is to start the MSA account with a monthly amount of $410 or less to avoid getting this "free" gift unless you belong to the group who is able to commit to a large monthly amount for higher interest rates. Being greedy for this "free" gift may jolly well end up making you worse off if you ever need to close the account within a year.

Fidelity Multi Asset Navigator Fund

Fidelity Multi Asset Navigator Fund offers not only exposure to bonds, equities and cash, but also property and commodities to improve diversification and enhance performance. Consequently, this mutual fund is able to tap into an array of opportunities globally to which many other funds do not otherwise have access. Such a more diversified asset mix is suppose to reduce the overall risk of the portfolio without forgoing returns. An added draw of the fund is that the asset mix changes accordin to the stages of the global economic cycle. Investors need not perform fund swtiching and are able to hold onto the same fund throughout the cycle, potentially reducing the hassle and costs of investing.

The major asset allocation of this mutual fund is reviewed on a monthly basis but the fund manager is free to change the asset allocation on other days if circumstances dictate and rebalance the positions daily in order to manage cash flows.

The fund is expected to achieve asset reallocation gradually reflecting the slow movement of the economy from one phase to another. While economic models suggest four different portfolios depending on the phase of the economic cycle, the transition from one to the other will be achieved progressively rather than immediately.

This mutual fund is considered to be a low to medium risk investment based on the fact that it will have no less than 30% in bonds and cash at any time and that it also benefits from asset classes diversification. The asset mix will be adjusted to reflect the prevailing trading conditions and the Fund should therefore be more resilient to downside than pure equity-based funds. Investors will do well to note that such diversified funds also typically underperform pure equity-based funds in a bullish market.

It will do well to consider adding this mutual fund to a portfolio to gain added stability. For the more aggressive portfolio, this fund may not fit as well, potential limiting the upside achievable. It may be worthwhile to consider purchasing this fund as a defensive play when the global economic cycle has been expected to have peaked.

CPF Minimum Sum, Medisave Minimum Sum to Go Up

From the first of next month, Singaporeans turning 55 years old will have to leave $99,600 in their CPF accounts under the Minimum Sum scheme. The amount is $5,000 more than the current minimum sum of $94,600 and will will apply to CPF members who turn 55 between 1 July 2007 and 30 June 2008.

Those who set aside the $99,600 fully in cash will receive a monthly payout of $790 from age 62 for about 20 years.

Likewise, the Medisave Minimum Sum will also be increased with the new amount being $28,500, up by $500. At the same time, the Medisave contribution ceiling will also be raised by $500 to $33,500.

As usual, many people will complain about the increase in CPF minimum sum since it is their money that has been "locked up". However, if we look deeper into the higher minimum sum, the raise in minimum sum will likely have effect on 2 different distinct groups of people, the low income and middle income groups. High income earners can be effectively exclude from any analysis since CPF is not likely to suffice to meet their retirement needs and they should have had pursued alternative wealth management opportunities.

For the low income group, the raise in minimum sum will better assist them in building a dependable source of retirement funds. With an ageing population, such self reliance during retirement has a wider impact on society as a whole. Taxes can be controlled at lower levels as the working population will not have to totally shoulder the burden of providing for the retired.

For the middle income, they have been increasingly feeling the squeeze of not getting the benefits provided to the poor while striving to attain and maintain the luxurious lifestyle so envied of the rich. In the course of this pursuit, the middle income group had frequently stretched their means to the last dollar. Of course, there is also a subgroup within this strata whom live well within their means and have little issues preparing for retirement but again, it is important to focus on the fact that CPF is a basic scheme to help in retirement and those who are able to should jolly well enhance their retirement income via other avenues.

What the raise means is actually rather trivial if we consider that CPF savings does attract interest of at least 2.5% and 4% for the Ordinary and Medisave accounts respectively. The impact of these raises is most acutely felt by those who are already nearing retirement age but for those who are still active in the workforce, the compounding effect of returns over time can be harnessed to enhance the CPF sums. 2.5% and 4% are the minimum guaranteed returns but if idle sums are properly invested into the right vehicles, it will not be difficult to double the returns of the Ordinary Account and get annualised returns of 5% or more.

NETS Fee Hike

Network for Electronic Transfers, NETS, is owned by DBS, OCBC and UOB and it has just recently announced that transaction levies are going to be upped by between 0.75 and 2 percentage points over 3 months from 1 Jul 2007. This is going to be pegged at between 1.5 and 1.8 per cent of purchases bringing the levy close to credit-card transaction fees which stand at about 2 per cent for Visa transactions and around 3 per cent for American Express.

While around 83 per cent of Singaporean residents currently use NETS for purchases in a strong embrace of cashless transactions, many retailers are starting to advise customers to pay cash or pay more for purchases.

The levy increase appears to be against the original purpose of NETS, to offer alternative system for cashless payment.

While NETS tries to justify that it is facing increasing competition from international card schemes and the increase is necessary to maintain its viability, insisting that NETS transaction fees are still the lowest in the market, it fails to deliver good logic.

Which business raises prices when consumers are not using its products? With the advent of debit cards, cashcards and other more innovative products, NETS is under intense competition and it appears to have made the wrong strategic move in trying to maintain revenues.

More worrying is the fact that NETS is owned by DBS, OCBC and UOB. While these banks had been paying minimal interest rates for savings deposits and lending it out at high rates, pocketing handsome profits, they had opted to squeeze more profits out of retailers with this NETS levy increase. When the backlash against this increase materialises and consumers start abandoning NETS and paying in cash instead, banks are likely to start considering charging consumers for the use of the automated teller machines and cornering the consumer even more.

Consumers are on the way to the guillotine, to be placed at the mercy! Woe!

Fairprice Plus Savings Account and Credit Card

FairPrice Plus is a collaboration between NTUC FairPrice Co-operative Limited (NTUC FairPrice) and Oversea-Chinese Banking Corporation Limited (OCBC Bank) with all banking products and services being provided by OCBC Bank unless stated.

This collaboration seeks to offers simple banking solutions at all FairPrice supermarkets islandwide.

This is a very new player on the banking market but it is worth taking a good look because of various interesting features...

The Fairprice Plus Savings Account provides an interest rate of 1% p.a., much higher than that offered by most banks. Futhermore, there is no minimum opening balance, monthly balance requirements and monthly service charge and with this account, there is access to over 770 OCBC and UOB ATMs islandwide!! Being able to earn 1% interest from the first dollar deposited is something that had not been available to many in a long long time.

Sounds good so far? There is more to come! The Fairprice Plus credit card offers free membership into LinkPoints loyalty program and gives 2 LinkPoints per $1 spent at FairPrice Plus Stores... It even offers 1 LinkPoint per $2 spent for VISA transactions!

FairPrice Plus hopes to stay steadfast to the values of Value, Simplicity and Transparency and I do think that this offer is a very good start. With the entry of such a competitive offering, hopefully it can help shake up the banking sector and get incumbent banks to start revising up their interest rates for basic saving accounts.