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Guarding the Vault: Fintech Cyber Security and a Finance 101

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I recently collaborated with Digilah on their latest innovation – “Collaborative Articles”!
They bring thought leaders from 2 or more industries to jointly create a unique point of view on technology.

Their first Collaborative article by myself and Ajit Padmanabh is now live and I’m now happy to share it here!
Fintech & cybersecurity are becoming increasingly crucial as more financial transactions move online. Using augmented reality and virtual reality to simplify financial literacy could greatly enhance understanding, engagement and lead to informed investment planning.

I’m happy to share the article below:

In this article Danielle (Financial Investment expert) and Ajit (AR, VR and Web 3 expert) jointly explore:

  • Fintech Cyber Security dos and donts
  • Investment education on Finance 101

Danielle’s thoughts on Fintech Cyber Security

The need for cyber security has become paramount in today’s modern age, particularly in the fintech and financial space. Being in this industry myself, I handle sensitive client data daily, and have access to their online wealth accounts; it is therefore vital that their information stays safe and inaccessible to fraudsters. Robust security measures must be in place, and I am constantly having to upgrade and refresh my skills to keep my clients safe.

Whilst fintech has allowed for financial services to become more streamlined, convenient, and efficient, it has somewhat opened the floodgates for cyber-attacks and threats. Harvard Business Review reported a 20% increase in data breaches from 2022 to 2023, and this is set to increase further as the years progress. Not only does this mean we have to constantly upgrade our software and infrastructure, but human area can become a massive opportunity for cyber criminals. I truly believe that a two-pronged approach of new regulatory processes, along with using AI in cybersecurity is a dynamic tactic to tackle this ever-evolving problem.

Cyber security is now seeing the same level of regulation as every other type of security, which means that fintech companies in particular must adhere to stringent rules and procedures. Regulations such as the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS) must be followed. Whilst of course this is best practice to ensure that clients’ data is safe, it therefore adds an extra strain onto the company and its employees; this may lead to delayed admin processes, longer lead time for new business submission and therefore, a time delay in profit for the company. Time is money, and the longer it takes for profit to be made, it essentially means smaller margins for the company.

One way this can be tackled is with Artificial Intelligence. Whilst using manpower takes time and money (not to mention the risk of human error), AI systems can scan masses of data sets, analyse data, spot anomalies, and therefore detect possible cyber risks before they have even happened. This preventative method ensures that risks are managed efficiently, and before they become breaches, which means a safer system for the clients, and mitigates possible reputation risk for the company.

However, AI is not a final solution; with cybercriminals’ techniques ever evolving, it means that AI will have to do the same. Not only that, employees must keep re-training when new systems are introduced, to ensure that human error is kept to a minimum. Moreover, one must ensure that the third-party companies engaged to deliver this AI system, is also compliant, safe, and follows the stringent regulations set in place for fintech companies to adhere to.

But the buck doesn’t just stop with the company- clients and customers must also stay vigilant so that they don’t fall victim to cyber-crime.

For example, being able to spot a phishing email, not clicking on unknown links, and not giving out all your banking details to someone over the phone. In order for an individual to be savvy, particularly when it comes to fintech and online financial transactions, they must be aware of risks and know when and where it is appropriate to give out their financial information. If you engage a professional for your financial planning, of course you will have to make them aware of your personal details and possibly even bank details. But do take note that they should be encrypting or password-protecting any sensitive documents that are being sent to you.

Even if you are planning your finances alone, and are using platforms for your investing, be sure to do your own due diligence; ensure that the apps you are using are regulated and have secure payment systems. Do take note that most will require you to upload some form of identification, as well as declaring your tax residency. Whilst to a layman, this may seem intrusive, this is actually a sign that the platform is doing its part to adhere to compliance and regulations. If they don’t ask of these from you, it could be a sign that the platform is not regulated.

For those that plan their investing and finances alone, cybersecurity becomes an even bigger risk, as this is normally something that a large corporation would have to ensure the safety of first, but now it is being left to the individual investor. If you are considering planning your finances yourself, having basic understanding and knowledge is incredibly important.

Therefore, I often suggest that people understand four main areas before they start investing, which I will explore further in this article.

Over to my co-writer Ajit who introduces how metaverse and block chain technology will probably bring future solutions to curtail fraud in our highly susceptible finance industry.

Ajit on Fintech Cyber Security

Background

When we analyse the extent of online fraud and scams, it’s a bit bewildering! As per FTC in US, online scams tend to harm more young people than the elderly. In 2021, Gen Xers, Millennials, and Gen Z young adults (ages 18-59) were 34% more likely than older adults (ages 60 and over) to report losing money to fraud like online shopping scams as well as job scams. Most of the elderly, on the other hand, are victims of tech support calls duping them of their earnings. The median reported loss was $800 for people 70-79, and a whopping $1,500 for those 80 and over. On the other hand, the median individual reported fraud loss by people 18-59 was $500 in 2021.

As the fastest growing economy in the world, India is no stranger to online frauds. 62% of the frauds affect the age group 18-52 as per data from 2018. With robust infrastructure around UPI, this number is bound to decrease.

Blockchain Technology to the Rescue

With weakening currencies in countries like Zimbabwe and Venezuela and hackers from China and Russia, the attacks will only amplify, in the years ahead. There is an urgent need to safeguard individual financial earnings, leveraging technologies like AI and Blockchain. While they are large and independent technologies, they form a core part of the Metaverse. They are the processing as well as the security layer of the Metaverse. Many futurists have predicted that our interactions will be with digital twins of institutions and banks in the Metaverse.

Fast forward to 5 years from now and the permutations and combinations of frauds and financial losses for individuals will only amplify. The promise of Blockchain is to essentially safeguard the assets and investments of individuals as well as organizations. By utilising blockchain, banks can set up a secure and tamper-proof ledger of all financial transactions.

With real-time monitoring and instant access to transaction records across the blockchain, organizations can track and analyze transactions in real-time, allowing them to detect and prevent fraud as it occurs. The trust architected within the technology enables seamless detection.

Challenges with Emerging Technologies

As has been the scenario with any technologies when they are new, be it Television or Computers or even Gaming, new technologies take time to be accepted mainstream owing to numerous challenges. Some of the challenges with Blockchain technology are as follows.

  • Evolving Technology – Until a technology is adopted mainstream, the maturity of the technology is determined by its limited set of users. The technology is tested for various scenarios by the very same users. Much like the planets move across the solar system with time, in addition to their rotation and revolution, the world is ever evolving with all its volatilities, uncertainties, complexities and ambiguities. No system can be tested for robustness without the volume of usage which only comes with higher adoption. Blockchain technology needs to cross this bridge to deliver on its promises of safety, security, and robustness.
  • Data Privacy Concerns – The more data that’s visible to Blockchain (and AI), the more seamless the tracking of frauds. But, from a user’s perspective, it warrants sensitive data to be made available, traceable at all times. With GDPR norms in Europe as well as upcoming Data Privacy Bill in India, Blockchain as it stands today, seems to conflict with the regulations.
  • Energy Consumption and Infrastructure – With ESG goals being one of the focus areas across organizations and Governments, the carbon footprint recorded by emerging technologies like Blockchain and AI, with cloud-based high-compute, tends to be on the higher side. There is a need for hardware optimization to be able to leverage the technology to its potential, in an environmentally responsible way.

In conclusion, Blockchain technology will serve as the protective layer of the Metaverse and will be at the forefront of minimising frauds and innovations around it. There is a need to accelerate the adoption of the technology to ensure its robustness to enable us to face the challenges of Metaverse in time.

Over to my co-writer Danielle who simplifies investing basics and how your hard earned money can work harder for you.

Danielle on Finance 101

I have many clients and connections that I come across asking me for advice on how to get their finances in order. ‘How can we maximise what we have now, so that we can make the most of our money later?’. Of course, one of the best passive things we can do, is to invest.

Investing is the concept of allocating assets, usually money, into different financial vehicles to create a profit. The bare minimum investment should be doing is beating inflation, because over time our hard-earned money is worth less, due to the rising cost of products. Before one starts investing, it is best to have a clear strategy, and get the basics covered first. Here are a few key financial areas you should have planned for:

  1. Build an Emergency Fund

At a glance investing may seem like an obvious choice when it comes to saving money. Why not just throw all your savings into investment if it means high returns? The answer is that investment returns are NOT guaranteed– even the safest investments come with some risk, and sometimes the lock in periods are high, or the penalty for withdrawing early is expensive. To ensure that you are not over-investing, make sure that you have an emergency savings fund that is easily accessible. That way should an emergency arise (like a large hospital bill or having to pay for car repairs), you can use your emergency money instead of jeopardising your investments.

The recommended amount you should have in your emergency fund is 3-6 months of your monthly salary. This should be a healthy buffer should the worst happen. If you already have more than that, then that’s a great time to consider investing.

2. Know How to Budget

Of course, setting aside for investment would be impossible if you didn’t know how much to set aside. That’s why organising your budget is a crucial step in your financial planning. There are many ways and methods for planning, but a good starting point would be the 50/20/30 rule:

  • 50% of your monthly salary maximum should go on things you need to pay for: housing, bills, groceries & insurance.
  • 30% can go on doing the things you enjoy: hobbies, drinks and travel.
  • 20% should go into your savings: think about your long term savings and investment goals.

If you have surplus each month, you can even consider increasing this 20% to a higher proportion and allocate more into your investment goals.

3. Be Debt-Free

Before you do any investing, you should really consider paying off your debt. Having a credit card bill is fine, but having any large or bad debt will hinder you in your long-term goals. It seems counter-productive attempting to make lots of money with investments, whilst paying off lots of debt. It may be difficult paying off student debt or large loans, but you will reap the benefits in the long run when your debt isn’t eating into your assets.

4. Set Your Investment Goals

This is arguably the most important step, defining your goals. What is the reason for investing? If you are doing it out of pure greed, then your judgment will become clouded when it comes to riskier investments, and you risk losing it all. So have a long and hard think about why you want to invest. You are putting your money, that you worked hard for, somewhere that could give you high returns, or give you nothing.

Therefore, it’s best to have a long think and define some clear goals for your future. Do you want to plan for your retirement? Save for a house? Pass something on to your children? Whatever it is, decide how much you would need and by when. Most investments give better returns if you have a longer-term commitment, so it’s OK to think big. If you have no clue and are just investing for the sake of it, you will quickly lose your drive and passion for making money.

These steps may seem simple, but they really are the key to an effective investment strategy. I work with clients every day to ensure that they have budgeted correctly, serviced their debt, and built an emergency fund, and together we work together to work towards their financial goals. Many find that this is more complex than they first thought and will include tax planning and ensuring that their assets are protected. This is of course one of the added benefits of hiring a professional. If you feel that these services are something you would require, feel free to reach out at Danielle.teboul@sjpp.asia or click here.

Over to my co-writer Ajit who tells us that finance 101 is best learnt by engaging emerging technologies like AR, VR as it helps in educating about financial products to customers in a more engaging and impactful manner and to all age groups, across the economic strata.

Finance 101

Background

In its “Economic Well-Being of U.S. Households in 2022” report, the U.S. Federal Reserve System Board of Governors found that many Americans are unprepared for retirement. Twenty-eight percent indicated that they have no retirement savings, and about 31% of those not yet retired felt that their retirement savings are on track. Among those who have self-directed retirement savings, about 63% admitted to feeling low levels of confidence in making retirement decisions. Low financial literacy has left millennials—the largest share of the American workforce—unprepared for a severe financial crisis, according to research by the TIAA Institute. Even among those who report having a high knowledge of personal finance, only 19% answered questions about fundamental financial concepts correctly.

A 2021 survey by the Federal Reserve Bank of San Francisco revealed that 28% of all payments were via credit card, with only 20% being made in cash. In India this is bound to be much more skewed in favour of digital payments, with the ubiquitous presence of UPI. Given high volume of online transactions and multiple banking products for individuals, there is a need for greater financial literacy to ensure every individual makes the most of her hard-earned money.

Financial Literacy can cover short-term as well as long-term financial strategies. The key is to simulate WHAT-IF scenarios of various investment decisions and visualise their impact across years and even decades, well in advance. Today, most of this occurs in MS Excel and is largely based on linear data projections or on a logarithmic scale. Can we visualize the consequences of our financial choices with the advent of technologies like AI and machine learning (ML) models? I believe so. To top it, consider it as a visualised, gamified scenario builder in Virtual Reality (VR), the visual layer of the Metaverse.

Role of Immersive Technologies

Imagine your financial investments playing out their profit-loss cycles across decades, thanks to AI modelling. These What-if scenarios would provide greater education and retention of one’s decision-making as far as financial instruments are concerned. As newer products enter the market, a constant training to these models will ensure the What-if scenarios remain invaluable for you as in individual investor. Taking it a step further and looking at visually gamifying the entire basics of financial literacy (Finance 101), it could prove to be a powerful learning tool for students in schools and colleges as well as working professionals.

Memory retention with VR is far greater than attending lectures, videos or e-learning modules. While the learning retention is only 5 percent for lectures and 10 percent for reading, we find VR among the top 2 with a learning retention of 75 percent. VR training is only beaten by learning that happens through educating others, where the learning retention is at 90 percent.

The learnability and application of knowledge would become second nature for every individual, thereby raising financial literacy, exponentially. There is a need to tap into the power of this technology for a crucial knowledge capsule that’s absent in the masses. This would ensure financial stability and growth in every individual beyond the cycles of survival and existence.

In conclusion there is a need to increase financial literacy in global population and immersive technologies like VR ably powered by AI could prove to be transformative in serving this need. Technology is the biggest leveller across urban and rural communities worldwide and hence could serve as a powerful tool ushering in this much needed aspect among various facets of literacy, financial or otherwise.

References:

  1. https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/12/who-experiences-scams-story-all-ages
  2. https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults
  3. https://www.statista.com/statistics/871207/india-share-of-financial-fraud-victims-by-age-group/
  4. https://www.investopedia.com/terms/f/financial-literacy.asp 
  5. https://fintechmagazine.com/articles/nvidia-advancing-cybersecurity-efforts-with-gen-ai
  6. https://hbr.org/2023/04/cyber-risk-is-growing-heres-how-companies-can-keep-up

Collaborating with other professionals, such as Ajit, who are in different sectors, allows us to view topics from a multi-faceted point of view, and I’m so grateful that we were able to work on this together and for Digilah to facilitate.

This article was originally published on Digilah:  https://digilah.com/2024/05/16/guarding-the-vault-fintech-cyber-security-and-a-finance-101/ [digilah.com]

Read the full article on Digilah here: Guarding the Vault: Fintech Cyber Security and a Finance 101 [digilah.com]

You can also find Ajit’s postings here:

Medium – https://medium.com/@ajit.padmanabh/guarding-the-vault-fintech-cyber-security-and-a-finance-101-3b18be5c3acf [medium.com]

Substack – https://open.substack.com/pub/ajitpadmanabh/p/guarding-the-vault-fintech-cyber?r=fm25h&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true [open.substack.com]

One Pass

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For expats that have been Singapore for a while, like myself, I’m sure that you have noticed that there has been a change in how easy it is to obtain employment, passes or visas to work here in Singapore. Particularly, a couple of years ago, the rules around Dependants Passes were changed, meaning that dependants of those on Employment Passes could no longer get a Letter of Consent to work. This was devastating for many, meaning that, as soon as their spouses contract ended, or Employment pass was due for renewal, they too had to quit their jobs, rendering them a stay at home spouse. The only way around this, which I know many have taken up, was to set up their own business and either get themselves an Employment Pass, or a Letter of Consent to work. 

However, this comes with many challenges, such as business costs, and the need to hire a local above a certain salary. I can understand why many chose to leave Singapore during this time, because a dual-income household is obviously going to be better than one in most circumstances. 

But now there is a new pass that allows for flexibility and means that dependants can work, just like Dependants Passes used to be! This is the One Pass, or the Overseas Networks and Expertise Pass. I thought it would be a great opportunity to write about this pass, some of the requirements, and the application process, because most people I know are not even aware about this pass. 

What Is A One Pass?

This pass is very similar to a PEP, or Personalised Employment Pass, with some extra added benefits. You can either apply for yourself, or get your company to apply for you, and has a longer duration than a PEP, of five years. The good thing about the One Pass though, is that it has subsequent renewals, also for five years. Of course, there is certain criteria that needs to be followed, such as a fixed monthly salary of at least $30,000 for the last 12 months or have been offered a job in Singapore by their future employer for at least $30,000 a month. There are special considerations, which I will come onto later, but this is the main route to be eligible for this pass.

Those on a One Pass are not restrained by the Compass and Fair Consideration Framework Advertising requirements, meaning that you don’t have to wait for the job to be posted for a certain amount of time and do not have to fill out the self assessment tool based on your age, experience, et cetera like you do for Employment passes. Flexibility is a massive bonus for this pass, meaning that you can work for multiple companies at any one time, and your pass or visa is not tied down to your employment in Singapore. This also means that if you change jobs, you don’t need to reapply for this pass.

Special Considerations 

 As I previously mentioned, there are ways that you can qualify to outstanding achievements, meaning that you don’t necessarily have to earn a minimum of $30,000 a month. If you have made outstanding achievements in either sports, arts and culture, or academia and research, the salary criteria will be waived. Of course, this is subject to individual review by MOM and other necessary agencies.

What if I Set Up a Company?

Of course, if you want to set up a company, and under the One Pass, you can do so, but many will say that it is very unlikely that you will be receiving $30,000 a month salary from a new business! That’s okay, because the renewal criteria for this pass allows leeway for this. If you’ve started and are running a company in Singapore, you need to employ at least five locals, and they need to be earning at least $5000 a month, your One Pass will be renewed under this criteria instead of the $30,000 a month.

Family

Family members independence were one of the main reasons I decided to write this article because this will allow you to continue to have a dual-income household, without your spouse having to search for their own Employment Pass or S Pass. Your spouse may have a Dependants Pass with a Letter of Consent to work in Singapore under the One Pass. This is great for not only the spouse, but also employers because those on a Letter of Consent do not have to meet S pass or E pass quotas and their salary can be a bit more flexible. It also means that you can get a Long-Term Visit Pass for parents, step children, and even common-law spouses. Of course, if you have children of your own, it’s no issue putting them on a Dependants Pass.

Thing to Take Note 

There are some key differences between this pass and Employment passes, Personalised Employment passes, Entre or Tech passes. For example, Entre, Tech and Employment passes may only be valid for one to 2 years, with Personal Employment passes normally being valid for three years. Of course, the One Pass is mainly targeted at high-income earners, such as executives who have a long track record in that industry, or outstanding individuals in arts and culture, sports, science and technology, or academic research.

Personalised Employment passes require a minimum salary of $22,500; this isn’t too much of a large gap between the One Pass at $30,000, but of course it can be seen as a very large jump if you are on an Employment pass. This path offers many flexibility options that regular Employment passes don’t, meaning that you are not tied to one employer, you can work freelance or work for multiple companies at one time, including starting your own business. This is very similar to a Personalised Employment Pass, but you cannot renew a Personalised Employment Pass.

Why is it Good?

The best thing about the One Pass in my opinion is definitely the Dependants passes for spouses.

In my opinion, this will encourage high-income earners to move to Singapore because they do not have to think about their spouse having to be a stay at home partner if that’s not what they want. I have known many people to leave Singapore because their husband or wife cannot find a job here that will give them an SPass or EPass . This completely takes away that stress and means that those on a one pass can make a smooth transition to Singapore and have a dual income whilst residing here!

I hope you found this useful, by no means am I a recruitment or visa specialist, but I know many people that have gone through this route. If you’re interested in finding out more have any specific questions, feel free to reach out!

2023 Reflection

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Whilst I am a big advocate for looking forward, I have learnt over the past year that reflection is just as important. So, I thought that it would be beneficial to look back over the past year and think about all the challenges and accomplishments I have experienced.

Personal Challenges

I’m not going to dwell too much on this topic but I feel that it’s important to highlight because I have not had a perfect year- whilst my professional life has been a success story, I have had my own crosses to bear in my personal life. I recently lost someone very close to me, only a few weeks before Christmas, and this has made me remember even more that family is most important and we should cherish these moments that we have.

Many people have commented that I seem fine on social media and that I’m still going to work, so I must be ok, but this is truly not the case. Grief hits people differently, and I’m choosing to try to continue with the day to day.

Business Challenges

Of course, like the market, work life also has its ups and downs. Not only have we all struggled with the cost of living and the markets not recovering like we had hoped, but here in Singapore the job market has become extremely volatile. I’ve had lots of clients, and indeed friends, leave Singapore due to losing their jobs or finding better opportunities elsewhere. Luckily, I am still in contact with many and some have even returned to Singapore, but it just shows that nothing is certain, not even our jobs, which is why it is so important to plan, have emergency savings etc.

On top of this, as many may know, during the first half of the year I was feeling quite deflated about my work situation; I felt that I was frequently made to choose between work and my personal time, and I felt that I was neglecting other parts of me. If you have read my reflection post when I turned 30, I think you will understand a bit more. I was starting to feel like there was a glass ceiling too; the holistic planning I was providing for my clients had gaps in, as I could only provide certain solutions. This made me feel like there must be something more, something better, so that I can be offering my clients the best service possible.

Business Successes

This actually led me onto many business successes. I truly believe that if there’s something wrong in your life that you can make an effort to change, you should do so. So that’s what I did. When I turned 30 I changed my mindset, sorted out my work-life balance, upgraded my skills and even changed jobs. Now I can provide my clients with even more support and advice that before, with solutions that are more suited to the expat transience we so frequently see in Singapore. Not only that, the level of support and resources that I am receiving now means that I can have a wider reach; I’ve recently had amazing opportunities such as speaking at conferences, hosting my own launch event, attending investment insight conferences and as of next year I will hopefully be joining an advisory board (more news to come)!

Of course I need to thank of all those that entrusted me with these opportunities to speak and share my knowledge, but this has also proven to myself that I can do it- that lul in the middle of the year was only temporary, and I am very excited for the upward trajectory I appear to be on for 2024. I’ve managed to empower and inspire others through my articles, videos and podcasts, and I can feel like I’m really making a difference.

Personal Successes

I feel like this positivity and new lease of life when changing jobs has created a domino effect, where things in my personal life have also been going well. I’m a lot happier and less stressed, which means that I am able to nurture and spend time working on my relationships. My friendships have grown stronger this year, I have travelled for some beautiful weddings, and I’m very blessed that my friends shared their special days with me, and I will be travelling home for Christmas to spend some quality time with my family.

Whilst this year has been far from perfect, I’m very lucky to have the life I have- I have wonderful friends, family and husband, my career is on the up, and whilst there has been a lot of sadness too, I’m ready to grieve and put the effort into healing.

I hope you took something away from this and it wasn’t just a self-indulgent exercise; I encourage everyone to reflect during this time of year and look forward to the year ahead!

What Does AI Mean For Investors?

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For the past year, all I have been hearing about is Artificial Intelligence. It really has become a hot topic; how it may put some out of jobs, but increases productivity for others. And I have to admit, it has helped me a lot with some of my content planning and marketing strategies. An interesting topic now being talked a lot is how AI will change the face of investing. Will it make things easier, or will some of its pitfalls pose as an issue to the avid investor? Of course, like everything with investing, there are risks and benefits to weigh up. So let’s discuss these here today.

New Companies & Products Will Emerge

Let’s talk about the bigger picture first. With new technology comes new business opportunities, and with this comes new investment opportunities. During COVID, a lot of people invested in healthcare, pharmaceuticals and mask manufacturing companies. We also saw a boom in e-commerce and online platforms. People were spending more time online, and more time buying products online, hence, tech equities saw quite a growth during this period. This may be similar with AI; with new companies and technology popping up, investors will want a piece of that pie. Not only that, other companies and industries may thrive with AI; start-ups will minimal manpower, may find that they can increase their bandwidth for production, all with the use of AI. Industrial, travel & leisure and consumer services may see a great shift from man power to roles automated by AI. One thing to be aware of is that the use of AI means that companies can be more experimental with their products and business models, because if they fail, it won’t be as high of a loss to them. So beware not to invest in some exciting trial or business experiment that may not pull through.

Well-Known Brands Over Small Successes

When it comes to AI, I think it is smart to think about how this technology will benefit large, well established companies, instead of thinking about the AI companies themselves. Companies like Google, Amazon and Microsoft all are huge well-known companies. They have a good track record, and whilst past performance is not indicative of future performance, we know that these companies have the resources and infrastructure to implement and blend AI with their current business models, meaning that we may see a positive growth, because they are using AI.

This Is a Long-Term Thing

Like anything that is development, or indeed with investing, we should look at this long-term. Hopefully AI will be here to stay, helping us in all aspects of our work and life. We are still in the infancy stages of AI, and I look forward to see how it will develop in future. All investments should be looked at with a long-term horizon, not just jumping on the band-wagon of a short-term fad. Hence why I think it’s important to consider the longevity of the companies you are investing in.

Investment Platforms

We already have robo-advisors when it comes to investing; you can open an app, answer a few questions and the app will suggest a portfolio for you to invest in. JP Morgan has already applied to trademark an IndexGPT and is developing a ChatGPT-like software for selecting investments for their customers.

Betterment was the first robo-advisor launched in 2008, with the purpose of rebalancing assets within target date funds to help manage passive, buy-and-hold investments through an online interface. This wasn’t new technology, but now most robo-advisors use passive indexing strategies using various algorithms to optimise. These have not replaced human advisors. Most high net worth investors seek the professional advice of an actual human, because active strategies, if done correctly, can out-perform passive ones. Not only that, human advisors can give advice when it comes to take, repatriation, and take into consideration personal matters when it comes to their planning.

It seems that the new ChatGPT-esque developments coming up may affect robo and human advisors in a few ways; this new technology will be able to create models and analyses that robo-advisors can’t, and would take a while for human advisors to do. AI can analyse and process masses of financial data, from over the years and geographical locations, a huge feet for an individual, do create robust reports that take into account the nuances of financials and the market. This has already led to models, such as the BloombergGPT model, already outperforming other models and benchmarks.

Human Interaction

It seems that, for now at least, there will still be a need for real life financial advisors- people enjoy socialising with other people, and that goes the same in business. Building the trust between client and advisor is so important and invaluable, that cannot be done with a robot or an AI chatbot. I think that this sentiment will continue, especially with financial planning. For now, AI cannot understand your current situation with home-life and family, your personality, or get excited about your future goals with you. Actually, all these are key elements of creating that financial roadmap for your future.

Artificial Intelligence is exciting, and it’s here to stay, and will only develop more over time. Always with investing, it is important to stay educated, but not get wrapped up in the hype. Weigh up the pros and cons, understand your own risk tolerance and look at your investment strategy for the long-run.

F1 Weekend!

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It’s the F1 in Singapore this weekend! It’s an exciting time full of hype, hustle and bustle, and loads of things to do! I thought I would write a short post on all the great stuff happening over the F1 weekend- along with some important things to take note.

The F1 starts this Friday 15th September, and finishes on Sunday 17th, at the Marina Bay Street Circuit. The official race is on Sunday from 8pm onwards, with the Friday & Saturday sessions being the practice and qualifying sessions, respectively. If you’re looking for tickets, you may still be able to purchase them on the events official website, or from official 3rd party sellers. If not, I’ve seen loads of dedicated posts and threads on the various Singapore Facebook groups. Just use your own due diligence and beware of scams. Also, do note that you can’t book just for the race, or just for the concert, it’s an all-in sort of thing, so just make sure you’re buying the correct day.

For me, the most exciting part of F1 is the concert- Formula 1 get some really amazing live bands and acts to perform over the weekend. On Friday we have Jackson Wang; on Saturday the acts will be: Post Malone, Kings of Leon, Culture Club and The Kooks; and on Sunday we have King of Leon again, Groove Armada, Madness and Robbie Williams. This is a massive year for UK artists, with a lot of throwbacks I’m sure us Brits will appreciate!

Don’t forget that places like Marquee and Zouk normally do afterparty events, too, it’s bound to be packed!

The main F1 race is scheduled to end by 10pm on September 17th, so be ready for a spectacular firework display shortly after. If you’re not attending the F1, but just want to watch the fireworks, I would suggest getting there well in advance to grab a spot- the Marina Bay area is normally packed during the F1 weekend, so be sure to get a good spot if you want to see the pyrotechnics.

Not only that, there will be road closures during the F1 weekend. Affected areas are usually town and the CBD, across areas including but not limited to Bayfront Avenue, Esplanade Drive, Raffles Avenue, and Temasek Boulevard and Suntec. Be sure to plan your routes accordingly.

Are you excited or attending the F1 this weekend?!

What Should Expats Take Note of Before They Move To Singapore?

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When I first moved to Singapore, I didn’t really know much about the landscape here in terms of living and working. I had only visited the country via transit, so Changi airport was all I knew! Of course, the reason I chose to move to Singapore was because the pay was a lot higher than what I can get in the UK. However, I wish I did understand things before I moved here so I could make more of an informed decision. So, I’ve come up with this list, hopefully I can help some newbies who are considering to move here. 

  1. Flights

Of course, if a company is willing to relocate you over here, then they should try and cover some of the moving costs. When I first accepted my job offer, my company did in fact offer to reimburse my flight ticket. However, this was not enough to cover the full flight cost. If I remember correctly, I had to book with a budget airline direct from London; there are no direct flights from Birmingham, so that was an extra hassle for me to try and travel down there. We all know they’re a lot more expensive than they were pre-Covid, so look out and make sure that your company’s reimbursement is sufficient to cover these inflated flight costs!

2. Housing Costs

I’ve written a few articles now regarding how expensive housing has gotten in Singapore. In fact, a couple of days after I broke my last article, the government raised the additional stamp duty for foreigners from 30% to 60%! Not only that, rental has skyrocketed over the past year or so; so even though your salary might be higher here than your home country, your outgoings might be a lot more too. If you are offered a package that covers some or all of your rental costs, then I think that is ideal! Rental costs are the bulk of my outgoing expenditures each month.

3. Insurance 

I know I always go on about this, but it’s very important! I spend a lot of my personal insurance each month. When I first arrived in Singapore, my previous company gave me an allowance of $200 annually to cover insurance…let me tell you now, this is not enough. This only covered a fraction of the very basic hospital & accident insurance I purchased, let alone the additional life & critical illness insurance I later purchased. If a company offers an allowance to purchase insurance, make sure it’s at least in the thousand dollar range. But ideally, a company should provide you with a corporate insurance plan, that way you may have an opportunity to be covered for GP, specialist and dental, coverage that is normally not claimable on a personal insurance plan. Also, it’s good to know that it is mandatory for companies to provide foreigners on work permits and S passes with insurance coverage.

4. Annual Leave

I didn’t factor in how important this was when I accepted a job offer. In my previous company, when I was an English teacher, I enjoyed a lot of days off, because of school holidays et cetera. The tuition centre simply refused to open, meaning that we were unable to work. However, these days off went over our 14 days annual leave, meaning that we actually had to pay back the company the days that we did not work! This basically ate away into our bonuses. I wish I’d have found a better offer that didn’t absorb our days off in lieu this way!

5. Shares & Taxes

A lot of companies offer shares as part of their incentive. I think this is a great idea, as you basically have access to stocks (maybe even blue chips) that you wouldn’t normally have access to. However, a word of caution- and this has happened a few times with my clients; IRAS will tax you on these shares even if you haven’t cashed them out. Quite often, you are taxed when the shares are doing well and price high, then, the shares may plummet, especially during this economic uncertainty. So, you may be taxed on assets that are actually a lot higher than their current value! This could push you into different tax brackets altogether, meaning that your tax for that year will be quite costly!

6. Education Costs

As a foreigner, it is often incredibly difficult to get your child into a local school, they have to take several exams on a syllabus that they probably are not familiar with. So, for most expats in Singapore, their kids have to go to international schools. The fees for these schools can be very pricey, easily $50,000 or even more a year for some! So, factor this in before you make the move. Ideally, you can find a package that will cover some of these educational costs for you.

7. Dependent’s Pass

A lot of foreigners here are in fact trailing spouses, following their husband or wife for work. In the past, this was not so much of an issue, but over Covid, the government made it a rule that those on a dependent pass could not get a letter of consent to work. This means that if you are on a dependent pass, you may have to work remotely for your previous company overseas, or simply not at all. I do know some who have set up their own company to bypass this, but then another problem arises in having to hire a local and pay their CPF, regardless of how well your business is doing.

Some argue that Singapore is becoming less attractive for foreigners to live and work. I don’t necessarily agree with this statement, however, I think it’s key that you know all of these things to look out for and make an informed decision.

Ni Yao Youtiao Ma?

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I have recently become somewhat addicted to youtiao. Sometimes known as the ‘Chinese Churro’, these deep-fried dough sticks are devilishly moreish. But, I wasn’t always such a big fan. I often saw my husband dipping one into his hawker centre kopi and frankly, that kind of grossed me out. But then I realised that the youtiao is a vessel for many more wonderful things. So, I decided to explore them…one more step to being local!

Ba Kut Teh

I love ba kut teh; this peppery and herbal pork rib soup is delicious. Quite often you will see youtiao included in your order. I like letting the dough get soaked into the soup until it’s a bit soggy.

Sweetened Soy Milk

I am definitely not at this stage yet; to me, dipping anything in soy milk is a disgusting concept. I don’t like soy milk at all, which is what the problem is here. But if you do, this might be up your street. Some people even dip their youtiao into soy pudding.

Condensed Milk

I have seen this a lot, and I guess it makes sense. A youtiao, in actuality, is just a long doughnut, and doughnuts are normally covered in icing or various other sweet and sticky substances. Condensed milk is so sweet and rich, dipping youtiao into it is a no-brainer for dessert-lovers or those with a sweet tooth.

Coffee

A very traditional and obvious choice. Whilst I don’t like it myself, it’s a similar concept to us Brits dipping a bickie into our tea or coffee. I just don’t like floaty pastry bits swimming around in my cup. It’s a no from me.

Congee

You may have guessed by now that youtiao is a Singapore breakfast staple, as is rice porridge! The two go together quite nicely, especially with a bit of soy sauce, for a balance of sweet and salty, soft and crunchy.

Curry Sauce

I’ve saved the best until last. And of course, someone from Birmingham loves anything drenched in curry sauce. In my opinion, youtiao is a perfect vessel for curry; it soaks it up perfectly and is the most comforting, stodgy snack. It may seem like a weird combo at first (and trust me, I thought so too), but you really can’t knock it until you’ve tried it. This combination got me back into youtiao, so I encourage all to give it a try!

I’m sure that I haven’t come across all ways of eating youtiao, and in fact I know that youtiao can be found across Chinese and South East Asian cuisine, each country having their special way of enjoying it. Have you tried this local staple? And how do you like to eat it?

What challenges are coming to Singapore in 2023?

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I didn’t want to start of the year with a depressing post, and I assure you it isn’t going to be one, but I thought it would be useful to people to be informed on the changes that are coming to Singapore that will directly affect us this year.

  1. GST Increase

As everyone knows, GST has now increased from 7% to 8%, meaning that things are generally more expensive. Not only does this apply for small things like going out for drinks or doing the grocery shopping, but I think people, particularly expats, will feel the pinch when it comes to paying for their child’s education. International school is already incredibly expensive, and with it being very difficult to get into the state schools, it is pretty much the only option for most people with families over here.That one percent extra makes all the difference, actually. I have Heard of a few international schools allowing the parents to pay for their 2023 bills in December, meaning that they are still paying at the 7% rate, but of course of December is over and moving forward it will be 8% across-the-board.

2. Rental

I’ve been talking about this topic a lot because it directly affects me and is most expats in Singapore, because most of us do not own a property here. Unlike the UK, which I’m used to very good laws that protect the tenants, Singapore does not seem to have this. There seems to be no glass ceiling when it comes to rental prices over here, and actually, a lot of expats when considering relocating to Singapore, should take into consideration how much of their salary is going to go on paying for rent! I do wonder when the rental prices will stop increasing, and I’m hoping that in 2023 it will stop, but there is no way to be sure.

3. Means Testing For Medical

From the end of 2022, the Ministry of health have decided to implement a subsidy framework across healthcare. This of course is to help those from lower income households, who may find medical bills too expensive. This method calculates the subsidies that people will receive based on their household income, so that the government can give assistance to those that need it most. While this is great for those who really need it, there are some factors to consider that will affect all of us. The first is opting for government hospitals instead of private.

Generally, going to a government hospital means that it is a lot cheaper than going private, but of course, this is more appropriate and best saved for people who really need it, on lower income households who qualify for the mains testing. Expats in particular are rarely included in these kind of schemes, which means that generally our healthcare will still stay as expensive. And don’t forget, the Ministry of health have also implemented a drug list, which means that if you are on medication that is not on this list, you may not be able to claim it on your insurance!

4. Inflation

This seems like a really scary word now, last year Singapore reached an all-time high with its inflation rate. While the Monetary Authority of Singapore has tried to curb this, by appreciating the currency and tightening policies to try and curb the upward prices, I still think that inflation will affect us in 2023. We can already see that things such as groceries and Energy bills have increased, what will this be like in 2023? I do think that the government has done a very good job at plateauing the inflation rate, but it has plateaued at a very high point. I am looking forward to seeing it decrease in the future.

5. Recession

While the unemployment rate was very low last year in Singapore, there is something that us as expats must think about; retrenchment. Due to the recent recession, we’ve seen a lot of companies cutting people on Employment passes and S passes, and employing more locals who they don’t have to fork out large levees or salaries for. Of course, this is great for the locals, and I do think that it’s wonderful to see a country put so much effort into supporting its local citizens, but this could greatly affect expatriates living and working in Singapore. Reshuffling of large organisations could mean relocation or retrenchment.

Not only that, I have seen a real competition for S passes due to the quota system. An S pass has changed a lot over the years, with its salary for some even being comparable to those on an Employment pass, but there is strict criteria and quota that each company needs to be able to employ someone on an S pass. Leading to shortages in some companies. Not only that, as we get older and we gain more work experience, our work passes become more and more expensive to renew for the employer. This could spike the increase in unemployment rates in the expat community.

Despite all of this, of course, I still love living in Singapore and consider it my home.

I’m sure that these things are just challenges that we will have to overcome, and will not continue forever. There have been worse economic periods in the past, this is not the worst that could happen! I’m still incredibly grateful to live in such a wonderful country. Here’s to a wonderful 2023 ahead!

Tips For Coping With Homesickness

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When I first moved to Singapore, it took me about six months to settle. I found it a lot more difficult to acclimatise here than when I moved to Hanoi. I feel like I made a few mistakes when I moved, so I wanted to share some tips on how to cope with homesickness, to help other expats not make the same mistakes I did.

Join Expat Meet-Up Groups

When I first arrived in Singapore, I had some friends come to visit me from the UK. While it was amazing to see them, I spent the first month or so with them experiencing all the tourist spots in Singapore. This made me feel like I too was a tourist, not a resident. Years later, I joined several meet up groups; not only was it a great way to make new friends, but it also made me feel like Singapore is truly my home, as I was experiencing all sorts of cool places, not just the tourist traps.

Get Out Of Your Comfort Zone

I really do think that trying new things and getting out of one’s comfort zone helps to break up mundane routine; having the same routine can create spats of great boredom can often leave one feeling lonely. So I do think that going out to new places, such as hawkers, parks or even MRT stations you’ve never been to, not only makes you feel settled, but breaks up a boring routine.

 Host Your Own Culture’s Events

This I think is a really cool idea; just because you live overseas doesn’t mean you have to skip all the holidays you would celebrate at home. I’ve been invited to Diwali parties, 4th of July gatherings and Eurovision parties in Singapore and I could really tell that the respective hosts really felt like it was home away from home. It was a great way to experience others’ cultures and customs, and it brings us all closer together

Stay In Touch

Keeping in touch with those from home is incredibly important, and with technological advancements, it’s easier now more than ever to keep in contact. However, I do think there is a right and a wrong way about doing it. I’ve learnt that setting a rigid time every week to call home, limits your flexibility; sometimes you may be out doing something, and having to rush home for a call can make you feel disconnected with Singapore. Calling home when you and are family are totally free and chilled makes the phone conversations much more enjoyable, and less homesick because you’ve been having a great time in Singapore!

Ultimately, moving away from home is hard, and whilst our family is not here, we are lucky enough to be able to choose our friends and who we spend time with. Surrounding yourself with understanding and supportive people, who are open to sharing experiences with you, will help you settle right in as an expat living in Singapore.

Fun Family Activities For The Long Weekend!

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We have a long weekend! So, I thought I would do a quick post on fun activities you can do with the whole family! Hopefully you can check these out and have a great time.

Pororo Park

  This indoor playground is perfect for kids- it’s Pororo themed and has a wide range of attractions such as rides, a sensory digging pit, a ball pool and a jungle gym! I’m sure the kids will love the small train that takes you around the park and the little theatre. There’s even a toddler’s area for smaller kids.

Airzone

  Airzone is a suspended play area inside City Square Mall. It covers 4 floors and has slides to connect each level. This is great for kids and parents; you can walk across the nets in giant inflatable balls, swim around in the suspended ball pit and explore the 3D maze. A great day out for all that’s sure to leave you worn out by the end of the day!

Marine Cove Playground

  If you want a day outdoors, you can head down to East Coast Park and enjoy the scenery, rent a bike or check out the Marine Cove Playground. This fairly new playground is sure to keep kids entertained, with its many climbing frames and slides.

BOUNCE Singapore

  Located in Orchard, this indoor trampoline park is sure to be a fantastic weekend activity! On top of pretty much the whole floor being trampolines, they have a climbing wall, dunking nets and a dodgeball battlefield! Not only is this great for kids, this is sure to bring out your inner child for the day.

Jacob Ballas Children’s Garden

  Jacob Ballas Children’s Garden is a children’s garden in the Singapore Botanic Gardens. Named after Joseph Ballas, the garden was the first children’s garden in Asia. Bring your family closer to nature and educate them about plants and the environment. The Garden offers children a space for exploration, adventure and play, with a farm, an orchard, and a forest with its own stream and ponds. A tranquil and peaceful day out.

SuperPark Singapore

  Super by name, super by nature! This modern complex in Suntec City has tube slides, pedal cars and obstacle courses. Think Takeshi’s Castle, Ninja Warrior and The Floor Is Lava all rolled into one…. but safe and child-friendly. There’s even a skate park and a street basketball arena! For those brave enough there’s even a flying fox zipline!

Singapore has plenty of great places for families, but I hope these give you some ideas for fun new activities. Happy long weekend!