According to the Singapore Index of Inflation Expectations survey, the majority of Singaporeans expect inflation to increase in the next year due to global trade policies and rising fuel prices. SMU’s Sim Kee Boon Institute for Financial Economics and DBS Group Research are co-sponsors and research partners of the survey, which is now in its 59th edition, and it was led by SMU Assistant Professor of Finance (Education) Aurobindo Ghosh. The survey polls 500 individuals representing a cross-section of Singapore households.
Commenting on FengHe Fund Management’s strategy of having a single final decision maker, SMU Lee Kong Chian Professor of Finance Melvyn Teo said that it is not uncommon for US$1 billion shops to have this, but they might have a problem when they get closer to US$20 billion. Prof Teo added that the issue with this style is continuity and capacity issues later on.
Commenting on the rise of smart kitchens, SMU Professor of Marketing (Practice) Sabine Benoit believes that automation is an inevitable trend in all aspects of human life, and it is becoming increasingly prevalent in food preparation. Prof Benoit noted that many countries, including Singapore, face a shortage of suitable staff in their hotel and catering industries, and robots can help alleviate this problem. Practical demand makes investment in this area even more attractive.
Commenting on the falling cryptocurrency prices, SMU Associate Professor of Finance Emiliano Pagnotta said forced sales pushed prices lower, triggering more liquidations in a feedback loop that cascaded through the market. Assoc Prof Pagnotta added that the people who liquidate first trigger further price movements, which creates escalation: the liquidation cascade. He noted that in combination with the thin liquidity of most crypto tokens, this can create a disaster scenario.
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On the topic of the fraudulent nature of inflating car prices in the loan applications, SMU Assistant Professor of Finance (Education) and Director of SMU’s Financial Literacy, Inclusion, and Technology Programme Aurobindo Ghosh commented about loan applications, saying that down payments should deter luxury purchases, encouraging buyers to choose cheaper cars or delay buying until they can afford it.
In an interview, SMU Assistant Professor of Finance (Education) and Director of SMU’s Financial Literacy, Inclusion, and Technology Programme Aurobindo Ghosh said that the Monetary Authority of Singapore’s (MAS) tightened policy is expected to cushion the potential rising costs that Singaporeans might face. Asst Prof Ghosh added that the policy is timely and pre-emptive; despite talks going on, the Middle East crisis might last a little longer than expected.
Commenting on snail mail popularity, SMU Assistant Professor of Strategy & Entrepreneurship Niloofar Abolfathi said the rise in popularity of snail mail fits a familiar pattern: the reemergence of products once thought obsolete, like film photography. Some artists around the world have figured out a way to guarantee a stable monthly paycheck: subscription-based snail-mail clubs. She said that creative work often comes with highly variable income, making monthly subscriptions more reliable.
Commenting on Singapore Changi Airport’s plan to revamp its private terminal and expand its lifestyle hub, SMU Assistant Professor of Strategy & Entrepreneurship (Education) Terence Fan said that the facilities would help to reduce the stress and anxiety that some of the premium leisure travellers might have. Asst Prof Fan added that the facilities might convince these travellers to take the extra trip and stop by in Singapore.
Commenting on the Civil Aviation Authority of Singapore's (CAAS) allocation of S$1.3 billion to support Changi Airport's expansion, SMU Assistant Professor of Strategy & Entrepreneurship (Education) Terence Fan said that with aviation demand continuing to grow, Singapore's existing four terminals will eventually reach saturation, making the T5 project a necessary pre-emptive deployment to break through limitations and benefit the overall economy.
In an interview, SMU Assistant Professor of Finance (Education) and Director of SMU’s Financial Literacy, Inclusion, and Technology Programme Aurobindo Ghosh said the recent uptick in inflation is driven by rising oil prices, exacerbated by disruptions linked to the closure of the Strait of Hormuz, through which about 20% of global oil and gas flows. He added that price pressures are expected to persist.
