Invest In Singapore: Why You Should Do It

Invest In Singapore: Why You Should Do It

Goals of Investment

Financial goals can be different for everyone but, in the end, there is one basic goal that everyone works to achieve:  make more money than you spend.  Depending on your investments, they can create a living income from dividends or interest without having to sell off the investments.  Of course, this doesn’t happen overnight, and you need to work to get where you want to be.  Keep in mind, however, that investing in stocks is not a guarantee of income, and stocks with a higher interest rate than any debt you have is not always a safe investment.

Risky Business

Investing always carries some inherent risk with it.  The investments with the highest returns also carry the highest risks.  Lower return investments carry much less risk, so it’s often better to diversify your investments.  Invest in some higher risk stocks to a level that you are comfortable with, but offset those with some low risk ones as well, in order to help protect some of your money.

Before investing in anything, be sure that you understand what you are buying.  If it’s a stock, research the company you are considering investing in.  Also, take a look at whether a stock has an up-front initial investment and consider whether it will use most of your investment money.  In addition, keep in mind that many investments will lose money at some point.  This is why diversification is important, and a varied investment portfolio can save you from a company’s drop in value.

Why Singapore?

Singapore is an island city-state just off the southern tip of the Malay Peninsula, and is a major commercial hub with one of the world’s busiest ports.  It also has one of the world’s largest financial centers and a globalized economy.  The island of Singapore offers an attractive place to invest money for a variety of reasons:

  • Singapore’s port is one of the world’s busiest with regards to total shipping tonnage, and the volume of cargo tonnage handled.
  • Singapore’s economy is very strong.  In 2013, it grew by 4.1% and the forecast for 2014 is between 2% to 4%.
  • The country is located in some of the world’s busiest shipping lanes.  It sits next to the Straits of Malacca, which connects the Indian and Pacific Oceans.
  • Proximity to China means that Singapore has large ties in both business and trading with the Chinese.  As the Chinese economy grows, Singapore’s will do the same.
  • Diverse economy means there is a wide range of opportunities for investors.  Big pharmaceutical companies and financial services, not to mention tourism and shipping provide wide protection against potential economic downturns.
  • Singapore has a free trade economy.  Low government spending and low levels of corruption help make this an attractive place for businesses and investors.

As with anything, you need to do your research before investing, whether it is stocks, real estate or anything else.  Know what you are buying and don’t be afraid to talk to people who may know more than you.  Investing can be beneficial if it’s done right, and Singapore can help you get returns on your investments.