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Friday, February 17, 2017

The 1982 Burmese Nationality Law ,The Burma Citizenship Law of 1982, The Burma Citizenship Act! (၁၉၈၂ ခုႏွစ္ ျမန္မာနိုင္ငံသား ဥပေဒ)




             The Burma Citizenship Act




The Burma Citizenship Act of 1982 granted citizenship to individuals residing in Burma who could trace their family residency to prior to 1823, that is, the year of the first British military campaign on Myanmar and with it, a wave of immigration from India and China. The law was deeply problematic, as for many families of various ethnic groups, transnational ties were common and there was rarely documentation to prove whether a person had deep roots in Myanmar.
The law was part of a series of actions taken by the nationalist Burmese government meant to shore up Burmese ethnic power. The law created three categories of citizenship: the first category applied to ethnic Burmans and members of the Kachin, Kayah, Karen, Mon, Arakan Buddhists, Shan, and any other ethnic group present in Myanmar prior to 1823 (though they did not include Rohingya Muslims, rendering them stateless), granted them full citizenship.
The second category granted partial “associate” citizenship to the children of mixed marriages where one parents fell into the first category, as well as to individuals who had lived in Myanmar for five consecutive years, or to individuals who lived in Myanmar for eight out of the ten years prior to independence. Associate citizens could earn an income, but could not serve in political office. The third category applied to the offspring of immigrants who arrived in Myanmar during the period of British colonial rule.


Burma Citizenship Law of 1982



Burma Citizenship Law promulgated.The Chairman of the Council of State on 15, October promulgated the Burma Citizenship Law which was approved and passed by the third session of the Third Pyithu Hluttaw.


The following is the English translation of the Burma Citizenship Law..


Burma Citizenship Law



(Pyithu Hluttaw Law No. 4 of 1982)



The Pyithu Hluttaw enacts the following Law: 








CONTENTS


Chapter I - Title and Definition

Chapter II - Citizenship

Chapter III - Associate Citizenship

Chapter IV - Naturalized Citizenship

Chapter V - Decision as to Citizenship, Associate Citizenship or Naturalized Citizenship

Chapter VI - Central Body

Chapter VII - Appeals

Chapter VIII - Miscellaneous Chapter I 


Chapter 1

Title and Definition


1. This Law shall be called the Burma citizenship Law.


2. The expressions contained in this Law shall have the following meanings:

(a) "State" means the Socialist Republic of the Union of Burma;

(b) "Citizen" means a Burma citizen;

(c) "Associate Citizen" means an associate citizen prescribed by this Law;

(d) "Naturalized Citizen" means a prescribed by this Law;

(e) "Foreigner" means a person who is not a citizen or an associate citizen or a naturalized citizen;

(f) "Certificate of citizenship" means a certificate of citizenship granted under the Union Citizenship (Election) Act, 1948 or the Union Citizenship Act, 1948 or this Law;

(g) "Certificate of Associate Citizenship" means a certificate of associate citizenship granted under this Law;

(h) "Certificate of Naturalized Citizenship" means a certificate of naturalized citizenship granted under this Law;

(i) "Central Body established under this Law.



Chapter II 

Citizenship

3.  Nationals such as the Kachin, Kayah, Karen, Chin, Burman, Mon, Rakhine or Shan and ethnic groups as have settled in any of the territories included within the State as their permanent home from a period anterior to 1185 B.E., 1823 A.D. are Burma citizens.


4. The Council of State may decide whether any ethnic group is national or not.


5.  Every national and every person born of parents, both of whom are nationals are citizens by birth.


6. A person who is already a citizen on the date this Law cones into force is a citizen. Action, however shall be taken under section 18 for infringement of the provision of that section.


7. The following persons born in or outside the State are also citizens:

(a) persons born of parents, both of whom are citizens;

(b) persons born of parents, one of whom is a citizen and the other an associate citizen;

(c) persons born of parents, one of whom and the other a naturalized citizen;

(d) persons born of parents one of whom is
(i) a citizen; or
(ii) an associate citizen; or
(iii) a naturalized citizen;
and the other is born of parents, both of whom are associate citizens;

(e) persons born of parents, one of whom is
(i) a citizen; or
(ii) an associate citizen; or
(iii) a naturalized citizen;
and the other is born of parents, both of whom are naturalized citizens;

(f) persons born of parents one of whom is
(i) a citizen; or
(ii) an associate citizen; or
(iii) a naturalized citizen;
and the other is born of parents, one of whom is an associate citizen and the other a naturalized citizen.


8. (a) The Council of State may, in the interest of the State confer on any person citizenship or associate citizenship or naturalized citizenship.

    (b) The Council of State may, in the interest of the State revoke the citizenship or associate citizenship or naturalized citizenship of any person except a citizen by birth.


9. A person born in the State shall have his birth registered either by the parent or guardian in the prescribed manner, within year from the date he completes the age of ten years, at the organizations prescribed by the ministry of Home Affairs

Proviso. If registration is not possible within one year from the date he completes the age of ten years, application may be made by the parent or guardian, furnishing sufficient reasons to the organizations prescribed by the Ministry of Home Affairs.


10 A person born outside the State shall have his birth registered either by the parent or guardian in the proscribed manner within one year from the date of birth at the Burmese Embassy or Consulate or organizations prescribed by the Ministry of Home Affairs.

Proviso. If registration is not possible within one year from the date of birth, application may be made by the parent or guardian, furnishing sufficient reasons to the Central Body through the Burmese Embassy or Consulate or organizations prescribed by the Ministry of Home Affairs.


11. (a) A parent or guardian who fails to comply with section 9 or section 10 shall be liable to pay a penalty of kyats fifty per year to the Burmese Embassy or Consulate or an organization prescribed by the Ministry of Home Affairs.

      (b) A parent or guardian who fails for five years in succession to comply with section 9 or section 10 shall be liable to a penalty of kyats one thousand.


12. A citizen shall

(a) respect and abide by the laws of the State;

(b)discharge the duties prescribed by the laws of the State

(c)be entitled to enjoy the rights prescribed by the laws of the State.


13. A citizen shall not as well acquire the citizenship of another country.


14. A citizen shall have no right to divest himself of his citizenship during any war in which the State is engaged.


15.  (a) A citizen shall not automatically lose his citizenship merely by marriage to a foreigner.

      (b) A foreigner shall not automatically acquire citizenship merely by marriage to a citizen.


16. A citizen who leaves the State permanently, or who acquires the citizenship of or registers himself as a citizen of another country, or who takes out a passport or a similar certificate of another country ceases to be a citizen.


17. The citizenship of a citizen by birth shall in no case be revoked except in the case of cessation of citizenship due to infringement of the provision of section 16.


18. A citizen who has acquired citizenship by making a false representation or by concealment shall have his citizenship revoked, and shall also be liable to imprisonment for a term of ton years and to a fine of kyats fifty thousand.


19. A citizen who has committed abetment of obtaining, in a fraudulent manner, a certificate of citizenship or a certificate of associate citizenship or a certificate of naturalized citizenship for another person shall be liable to imprisonment for a term of seven years and to a fine of kyats ten thousand.


20. (a) The certificate of citizenship of a person whose citizenship has ceased or has been revoked shall be cancelled. A person holding such a cancelled certificate shall surrender it in the manner prescribed by the Ministry of Home Affairs.

      (b) Failure to surrender a cancelled certificate of citizenship or continued use of it or transfer of it in a fraudulent manner to another person shall entail imprisonment for a term of ten years and a fine of kyats twenty thousand.

     (c) Whoever holds and uses a cancelled certificate of citizenship or the certificate of a deceased citizen shall be liable to imprisonment for a term of ten years and to a fine of kyats twenty thousand.


21.  Whoever forges a certificate of citizenship or abets such act shall be liable to imprisonment for a term of fifteen years to a fine of kyats fifty thousand.


22. A person whose citizenship has ceased or has been revoked shall have no right to apply again for citizenship or associate citizenship or naturalized citizenship.



Chapter III 

Associate Citizenship


23. Applicants for citizenship under the Union Citizenship Act, 1948, conforming to the stipulations and qualifications may be determined as associate citizens by the Central Body.


24. A person who has been determined is an associate citizen by the Central Body shall appear in person before an organization prescribed by the Ministry of Home Affairs, and shall make an affirmation in writing that he owes allegiance to the State, that, he will respect and abide by the laws of the State and that he is aware of the prescribed duties and rights.


25. The Central Body may include in the certificate of associate citizenship the names of children mentioned in the application. The child whose name is so included is an associate citizen.


26. The child whose name is included under section 25, and who has completed the age of eighteen years shall make an affirmation in accordance with section 24, along with the parents.


27. (a) The child whose name is included under section 25 and who has not completed the age of eighteen years shall, within one year from the date he completes the age of eighteen years appear in person before an organization prescribed by the Ministry of Home Affairs and make an affirmation in accordance with section 24.

      (b) A person who fails to comply with sub-section (a) shall be liable to pay a penalty of kyats fifty per year to an organization prescribed by the Ministry of Home Affairs.


28. If affirmation is not possible within one year, application may be made, furnishing sufficient reasons to the Central Body, through the organizations prescribed by the Ministry of Home Affairs. If there are no sufficient reasons after the date on which he completes the age of twenty-two years, he shall lose his associate citizenship.


29. (a) When both the parents, of the children included in their certificate of associate of associate citizenship, lose their associate citizenship, the child who has not completed the age of eighteen years, and the child who has completed the age of eighteen years, but has not made an affirmation cease to be associate citizens.

     (b) Where one of the parents, of the children included in the certificate hold by her or him, is an associate citizen and the other a foreigner, and if the mother or father who is an associate citizen loses her or his associate citizenship the child who has not completed the age of eighteen years, and the child who has completed the age of eighteen years, but has not made an affirmation cease to be associate citizens.


30. An associate citizen shall

(a) respect and abide by the laws of the State;

(b) discharge the duties prescribed by the laws of the State;

(c) be entitled to enjoy the rights of a citizen under the laws of the State, with the exception of the rights stipulated from time to time by, the Council of State.


31. An associate citizen shall not as well acquire the citizenship of another country.


32. An associate citizen shall have no right to divest himself of his associate citizenship during any war in which the State is engaged.


 33. An associate citizen shall not automatically acquire citizenship merely by marriage to a citizen.


34. An associate citizen who leaves the State permanently or, who acquires the citizenship of or registers himself as a citizen of another country, or who takes out a passport or a similar certificate of another country ceases to be an associate citizen.


35. The Central Body may revoke the associate citizenship of a person if he infringes any of the following provisions:

(a) trading or communicating with enemy countries or with countries assisting the enemy country, or with citizens or organizations of such countries during a war in which the State is engaged or abetting such an act;

(b) trading or communicating with an organization or with a member of such organization which is hostile to the State, or abetting such an act;

(c) committing an act likely to endanger the sovereignty and security of the State or public peace and tranquillity or giving rise to the reasonable belief that he is about to commit such an act;

(d) showing disaffection or disloyalty to the State by any act or speech or otherwise;

(e) giving information relating to a state secret to any person, or to any organization, or to any other country or countries,, or abetting such an act;

(f) committing an offence involving moral turpitude for which he has been sentenced to imprisonment for a minimum term of one year or to a minimum fine of kyats one thousand.


36. An associate citizen who has acquired such citizenship by making a false representation or by concealment shall have his associate citizenship revoked, and shall also be liable to imprisonment for a term of ten years and to a fine of kyats fifty thousand.


37. An associate citizen who has committed abetment of obtaining in a fraudulent manners a certificate of citizenship or a certificate of associate citizenship or a certificate of naturalized citizenship for another person shall have his associate citizenship revoked; and shall also be liable to imprisonment for a term of seven years and to a fine of kyats ton thousand.


38. An associate citizen who has personal knowledge of an offence committed by any person under section 36 or section 37, or as an accomplice who has committed such an act, discloses or admits the offence before organizations prescribed by the Ministry of Home Affairs within one year from the date this Law comes into force, or within one year from the date of commission of the offence shall be exempted from the penal provisions relating to such offence.


39. (a) The certificate of associate citizenship of a person whose associate citizenship has ceased or has been revoked shall be cancelled. A person holding such a cancelled certificate shall surrender it in the manner prescribed by the Ministry of Home Affairs.

     (b) Failure to surrender a cancelled certificate of associate citizenship or continued use of it or transfer of it in a fraudulent manner to another person shall entail imprisonment for a term of ten years and a fine of kyats twenty thousand.

      (c) Whoever holds and uses a cancelled certificate of associate citizenship or the certificate of a deceased associate citizen shall be liable to imprisonment for a term of ten years and to a fine of kyats twenty thousand.


40. Whoever forges a certificate of associate citizenship or abets such act shall be liable to imprisonment for a term of fifteen years and to a fine of kyats fifty thousand.


41. A person whose associate citizenship has ceased or has been revoked shall have no right to apply again for associate citizenship or naturalized citizenship.





Chapter IV  

Naturalized Citizenship

 42. Persons who have entered and resided in the State anterior to 4th January, 1948, and their offsprings born Within the State may, if they have not yet applied under the union Citizenship Act, 1948, apply for naturalized citizenship to the Central Body, furnishing conclusive evidence.


43. The following persons born in or outside the State from the date this Law comes into force may also apply for naturalized citizenship:

(a) persons born of Parents one of whom is a citizen and the other a foreigner;

(b) persons barn of parents, one of whom is an associate citizen and the other a naturalized citizen;

(c) persons born of parents one of whom is an associate citizen and the other a foreigner;

(d) persons born of parents, both of whom are naturalized citizens;

(e) persons born of parents, one of whom is a naturalized citizen and the other a foreigner.


44. An applicant for naturalized citizenship shall have the following qualifications:

(a) be a person who conforms to the provisions of section 42 or section 43;

(b) have completed the age of eighteen years;

(c) be able to speak well one of the national languages;

(d) be of good character;

(e) be of sound mind.


45. A person married to a citizen or to an associate citizen or to a naturalized citizen, who is holding a Foreigner's Registration Certificate anterior to the date this Law comes into force shall have the following qualifications to apply for naturalized citizenship:

(a) have completed the age of eighteen years;

(b) be of good character;

(c) be of sound mind;

(d) be the only husband or wife;

(e) have resided continuously in the State for at least three years is the lawful wife or husband.


46.  (a) A person who has been determined as a naturalized citizen by the Central Body shall appear in person before an organization prescribed by the Ministry of Home Affairs, and shall make an affirmation in writing that he owes allegiance to the State, that he will respect and abide by the laws of the State and that he is aware of the prescribed duties and rights.

      (b) A person who has been determined as a naturalized citizen by the Central Body and holding a Foreigner's Registration Certificate shall appear in person before an organization prescribed by the Ministry of Home Affairs, and shall make an affirmation in writing that he renounces his foreign citizenship, that he owes allegiance to the State, that ha will respect and abide by the laws of the State and that he is aware of the prescribed duties and rights.


47. The Central Body may include in the certificate of naturalized citizenship the name of a child mentioned in the application. The child whose name is so included is a naturalized citizen.


48. The child whose name is included under section 47, and who has completed the age of eighteen years shall make an affirmation in accordance with sub-section (a) of section 46, along with the parents.


49. (a) The child whose name is included under section 47, and who has not completed the age of eighteen years shall, with in one year from the date on which he completes the age of eighteen years appear in person before an organization prescribed by the Ministry of Home Affairs and make an affirmation in accordance with sub-section (a) of section 46.

     (b) A person who fails to comply with sub-section (a) shall be liable to pay a penalty of kyats fifty per year to an organization prescribed by the Ministry of Home Affairs.


50. If affirmation is not possible within one year, application may be made, furnishing sufficient reasons to the Central Body, through the organizations prescribed by the Ministry of Home Affairs. If there are no sufficient reasons after the date on which he completes the age of twenty-two years, he shall lose his naturalized citizenship.

51. (a) When both the parents, of the children included in their certificate of naturalized citizenship, lose their naturalized citizenship the child who has not completed the age of eighteen years, and the child who has completed the age of eighteen years, but has not made an affirmation cease to be naturalized citizens.

      (b) Where one of the parents of the children included in the certificate held by her or him, is a citizen and the other a foreigner, and if the mother or father who is a citizen loses her or his citizenship, the child who has not completed the age of eighteen years and the child who has completed the age of eighteen years, but has not made an affirmation cease to be naturalized citizen.

      (c) There one of the parents, of the children included in the certificate hold by her or him, is an associate citizen and the other a foreigner, and if the mother or father who is associate citizen loses her or his associate citizenship, the child who has not completed the age of eighteen years, and the child who has completed the age of eighteen years, but has not made in affirmation cease to be naturalized citizens.

     (d) Where one of the parents, of the children included in the certificate held by her or him, is a naturalized citizen and the other a foreigner, and if the mother or father who is a naturalized citizen loses her or his naturalized citizenship, the child who has not completed the age of eighteen years, and the child who has completed the age of eighteen years, but has not made an affirmation cease to be naturalized citizens.

52. If a person married to a citizen or to an associate citizen or to a naturalized citizen, who is holding a Foreigner's Registration Certificate anterior to the date this Law comes into force applies for naturalized citizenship and the husband or wife of such a person dies or is divorced from such a person before acquiring naturalized citizenship, the application for naturalized citizenship of such a person shall lapse.

53. A naturalized citizen shall

(a) respect and abide by the laws of the State;

(b) discharge the duties prescribed by the laws of the State;

(c) be entitled to enjoy the rights of a citizen under the laws of the State with the exception of the rights stipulated from time to time by the Council of State.


54. A naturalized citizen shall not as well acquire the citizenship of another country.


55. A naturalized citizen shall have no right to divest himself of his naturalized citizenship during any war in which the State is engaged.


56. A naturalized citizen shall not Automatically acquire citizenship or associate citizenship merely by marriage to a citizen or to an associate citizen.


57. A naturalized citizen who leaves the State permanently, or who acquires the citizenship of or registers himself as a citizen of another country, or who takes out a passport or a similar certificate of another country ceases to be a naturalized citizen.


58. The Central Body may revoke the naturalized citizenship of a person if he infringes any of the following provisions:

(a) trading or communicating with enemy countries Or with countries assisting the enemy country, or with citizens or organizations of such countries during a war in which the State is engaged, or abetting such an act;

(b) trading or communicating with an organization or with a member of such organization which is hostile to the State, or abetting such an act;

(c) committing an act likely to endanger the sovereignty and security of the State or Public peace and tranquillity or giving rise to the reasonable belief that he is about to commit such an act;

(d) showing disaffection or disloyalty to the State by any act or speech or otherwise;

(e) giving information relating to a State secret to any person, or to any organization, or to any other country or countries, or abetting such an act;

(f) committing an offence involving moral turpitude for which he has been sentenced to imprisonment for a minimum term of one year or to a minimum fine of kyats one thousand.


59. A naturalized citizen who has acquired such citizenship by making a false representation or by concealment shall have his naturalized citizenship revoked, and shall also be liable to imprisonment for a term of ten years and to a fine of kyats fifty thousand.


60. A naturalized citizen who has committed abetment of obtaining in a fraudulent manner, a certificate of citizenship or a certificate of associate citizenship or a certificate of naturalized citizenship for another person shall have his naturalized citizenship revoked, and shall also be liable to imprisonment for a term of seven years and to a fine of kyats ten thousand.


61.  A naturalized citizen who has personal knowledge of an offence committed by any person under section 59 or section 60, or as an accomplice who has committed such an act, discloses or admits the offence before organizations prescribed by the Ministry of Home Affairs within one year from the date this Law comes into force, or within one year from the date of commission of the offence shall be exempted from the penal provisions relating to such offence.

62. (a) The certificate of naturalized citizenship of a person, whose naturalized citizenship has ceased or has been revoked, shall be cancelled. A person holding such a cancelled certificate shall surrender it in the manner prescribed by the Ministry of Home Affairs.

      (b) Failure to surrender a cancelled certificate of naturalized citizenship or continued use of it or transfer of it, in a fraudulent manner, to another person shall entail imprisonment for a term of ten years and a fine of kyats twenty thousand.

      (c) Whoever holds and uses a cancelled certificate of naturalized citizenship or the certificate of a deceased naturalilzed citizen shall be liable to imprisonment for a term of ten years and to a fine of kyats twenty thousand.


63. Whoever forges a certificate of naturalized citizenship or abets such act shall be liable to imprisoment for a term of fifteen years and to a fine of kyats fifty thousand.


64. A person whose naturalized citizenship has ceased or has been revoked shall have no right to apply again for naturalized citizenship.



Chapter V  

Decision as to Citizenship, Associate Citizenship or Naturalized Citizenship

65. Any person may apply to the Central Body when it is necessary for a decision as to his citizenship, associate citizenship or naturalized citizenship.


66. The Central Body shall

(a) permit the applicant the submission of application with supporting evidence;

(b) decide in accordance with law;

(c) inform its decision to the applicant.



Chapter VI 

Central Body

67. The Council of Ministers shall form the Central Body as follows:

(a) Minister Chairman Ministry of Home Affairs

(b) Minister Member Ministry of Defence

(c) Minister Member Ministry of Foreign Affairs


68. The Central Body has the authority:

(a) to decide if a person is a citizen, or an associate citizen or a naturalized citizen;

(b) to decide upon an application for associate citizenship or naturalized citizenship;

(c) to terminate citizenship or associate citizenship or naturalized citizenship;

(d) to revoke citizenship or associate citizenship or naturalized citizenship;

(e) to decide upon an application regarding failure as to registration or affirmation.


69. The Central Body shall give the right of defence to a person against whom action is taken.



Chapter VII 

Appeals

70. (a) A person dissatisfied with the decision of the Central Body may appeal to the Council of Ministers in accordance with the procedure laid down.

      (b) The decision of the Council of Ministers is final.


71. Organizations conferred with authority under this Law shall give no reasons in matters carried out under this Law. 




Chapter VIII  

Miscellaneous

72. Except under any of the provisions of this Law, no foreigner shall have the right to apply for naturalized citizenship from the date this Law comes into force.


73. A foreigner who is adopted by a citizen or by an associate citizen or by a naturalized citizen shall not acquire citizenship or associate citizenship or naturalized citizenship.


74. Except on penal matters, all matters relating to this Law shall be decided by the only organizations which are conferred with authority to do so.


75. The Council of Ministers, shall, for the purpose of carrying out the provisions of this Law, lay down necessary procedures with the approval of the Council of State.


76. The following Acts are repealed by this Law:

(a) The Union Citizenship (Election) Act, 1948;

(b) The Union Citizenship Act, 1


[This text is derived from/checked against the version published in the official "Working People's Daily" of 16 October 1982 and the version on the UNHCR website.]
......


၁၉၈၂ ျမန္မာႏိူင္ငံသား ဥပေဒပါ ..

ျမန္မာလူမ်ိဳးတိုင္း ေလ့လာထားသင့္ပါတယ္..
၁၉၈၂ ခုႏွစ္ ျမန္မာနိုင္ငံသား ဥပေဒ

၁၉၈၂ ခုႏွစ္ ျမန္မာနိုင္ငံသား ဥပေဒ ( 1982 Burmese Nationality Law Myanmar Version) by Than Han on Scribd

Tuesday, February 7, 2017

Creating A Portfolio Like Temasek Holdings


Singaporeans who are keen to invest in the market but have yet to decide on an investment strategy can consider this idea – forming a portfolio that mimic the investments made by Temasek Holdings (“Temasek”).

For clarification purpose, it is impossible for individuals to entirely replicate Temasek’s investment because the state-owned fund does invest in private companies that are not accessible for retail investors.

Nonetheless, there are ways in to get similar exposure to the companies that Temasek invests in. By doing so, one can technically “free-ride” on the selection criterias made by Temasek fund managers. As the saying goes, if you can’t beat them, join them.
Temasek is a feasible choice for Singaporeans mainly due to the investment mandate, which would include (1) protecting wealth, and (2) having a long-term investment horizon. Temasek is mandated to protect our past reserves. Similarly, Singaporeans would prefer to protect our wealth against inflation.


How do I start?

We can first start with Singapore based stocks that can be added into the “My-Temasek Portfolio”

Exhibit 1: Sectorial Breakdown of Temasek’s Portfolio
Exhibit 1

Exhibit 2: Sample Companies Within The Sector Breakdown



These are some examples of companies that Temasek has invested in which are tradable on the Singapore Stock Exchange.

How long will it take for me to form this portfolio?

For the average person, it is unlikely that we will have $100,000 in cash to form a meaningful portfolio consisting of these stocks immediately. Our advice is to take your time to save up and buy into the sectorial stocks bit-by-bit, company-by-company. It is possible to form this portfolio over a span of 3 to 5 years.

How do I start choosing my first few stocks?

Choose the companies that you cannot do without. Companies that are critical to the everyday lives of Singaporeans have in our opinion, the lowest probability of crashing and disappearing overnight.

Examples include DBS, SingTel, Comfort Delgro & CapitaLand.

Exhibit 2

What about the small stocks in the sectorial breakdown?

For wealth protection purpose, we would advocate to have the majority of your portfolio to be invested in larger, well-known companies. If you have additional cash and don’t mind taking some extra risks, you can consider allocating some money to smaller companies.
Do I need to change the percentage within the sector regularly?

You do not need to change it regularly, as you are already spreading your eggs thin into various sectors (e.g. 28% in financial services and 24% in telecommunications, media and technology).

However, if you are following Temasek’s investment strategies, you should review their portfolio exposures annually. Make changes only when there are drastic differences in the exposures (e.g. Financial services decrease from 28% to 10%).

Will I be able to make 16% annually like Temasek?

Temasek’s portfolio has multiple advantages over us. They include, (1) Professional management of assets, (2) Size advantage of SG$405.8 billion in assets, (3) First-mover advantage – into emerging markets and many others.

Therefore, the probability of us achieving an average of 16% total shareholder return (since inception) is very low.

However, as Singapore’s long-term inflation is relatively low at ≤3% per annum, we should be aiming to earn > 5% average total return over a long investment horizon. In our opinion, we do not expect following Temasek’s investment strategies to give you returns less than inflation over the long haul.

As usual, we recommend that you do your own research and seek for proper advice before making any investment decisions. At the end of the day, no one, not even Temasek, can guarantee you that their past performances can be translated into similar future performances.

What do you think of following Temasek’s investment strategies and portfolio? Do share with us your thoughts on our Facebook page.

DollarsAndSense.sg is a website that aims to help people make better financial decisions.

Ref:http://dollarsandsense.sg/creating-a-portfolio-like-temasek-holdings/

4 Losing Strategies That Inexperienced Retail Investors Love Embracing!

Deploying a bad strategy is a sure way to consistently lose money in the stock market, or lose in just about everything else in life. Ideally, people should use strategies that keep them successful in the long run.

Unfortunately when it comes to investing, retail investors are more likely to embrace “losing strategies”. Here are 4 classic examples that we can think off.

# 1 They Love Being “Active”

It’s a well known fact that the more active you are in the stock market buying and selling stocks, the more skilful you better be.

Think about it this way. If most studies have already shown that active fund managers do not beat passively managed funds, despite the presence of experienced fund managers, why do retail investors still think they can outperform the market by actively managing their investments? It makes absolutely no sense. A retail investor knows less than a professional fund manager, and is unlikely to be able to pick the right stocks at the right time. Why should they be able to outperform the market when fund manager are unable to do so.

Keep it simple for yourself. Look at passively managed funds or ETFs and stick to them. If you want to buy individual stocks, keep it as a small percentage of your overall portfolio.

# 2 They Enjoy Following Trends

Many people are trend followers in life. Be it buying the latest iPhone 7, watching the latest Korean drama, DOTS, or going to the latest shopping mall that TheSmartLocal wrote about.
While it costs you nothing to follow a trend when it comes to buying gadgets, watching TV shows or visiting the shopping malls, the same cannot be said for investing.

When a stock becomes hot, demand would exceed supply. More investors start looking to buy the stocks and there are not enough willing sellers, thus pushing prices up. That in turn brings more attention to the stock, which leads to further price increase. The vicious cycle continues.

Following the latest trend when it comes to investing will always cost you more. Hence, it’s better to invest based on your own knowledge and research, rather than to rely and overpay for stocks based on what other people are talking about.

# 3 They Sell Winners And Hold On To Losers

You buy a stock. It goes up by 15%. You are delighted and cash out your profit. The stock continues to increase. You tell yourself you will re-buy it when it returns to the original price. That never happens. 

You buy a stock. It goes down by 15%. You decide to hold on to it in the hopes that it will bounce back so that you can recoup your initial investment. It continues to drop. You hold on to it. 

The scenarios above are examples of how retail investors sub-consciously employ sure-lose strategies without even realising it. Instead of holding on to winning stocks and letting their profits run, while cutting their losses quick on losing stocks, they do the exact opposite instead, thus ensuring that they will inevitably lose money on a long enough timeline.

# 4 They Look At Returns, Instead Of Risks.

Expected higher returns always translate into higher risk. That much is certain. As investors, we cannot expect high returns without taking higher risk.

Instead of focusing on higher returns that come (automatically) with higher risks, retail investors should focus on risk, which doesn’t necessarily translate into optimised returns. Investors should be asking themselves if the risk they are taking on is too high for the returns they expect to get.

If an investor is unable to ascertain the risks, then they would be better off passing up on the investment opportunity and to focus instead of investments that they are more familiar with.
Inexperienced investors tend to be put too much emphasise on returns, while ignoring the more important aspect of risk. If a high-risk investment pans out, it gives them further confidence that they were right, and encourages them to put in more money. Ultimately when their investment turns sour, they blame it on the product rather than to recognise that it was a lack of risk management that led to the loss.

Are You Sabotaging Your Own Investment?

It’s one thing to not have a great investment strategy, and to earn lower returns that you could have earned had your strategy been more refined.

It’s a whole different thing when your investment strategy is designed for eventual failure. If any of the investment “strategies” above sound familiar to what you are doing, or someone whom you know, do yourself and your friends a favour by correcting them.

Are you or your friends looking to learn more about how you can choose winning stocks? Or how to invest successfully? If you are, join us in our latest installment of DollarsAndSense 90-min Series: Guide to Choosing Winning Stocks, as we partner with industry experts to bring you the basics of what you need to know about stock investing in a bite-sized, no nonsense way.

How can you choose winning stocks in Singapore? Join us on 16 November in our next 90-minute series: Guide To Choosing Winning Stocks, as we discuss some of the key elements to look at when choosing stocks to invest in. Subscribe to our free e-newsletter to receive exclusive content and promotions that are not available on our website. Follow us on Instagram @DNSsingapore to get daily dose of finance inspirations through photos.

Ref:http://dollarsandsense.sg/4-losing-strategies-that-inexperienced-retail-investors-love-embracing/

Buy High and Sell Higher !

Stock Investing Strategies Series: Buy High and Sell Higher

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In part two of our stock investing strategies, we explore the rational behind the “Buy High and Sell Higher” strategy and discuss how you can make it work for you.
This is in continuation to the previous article where we discuss the impact of buying and holding shares for long periods of time. The article can be found Here. In this article, we discuss another form of strategy, Buy High and Sell Higher.

Can prices of stocks go higher, having already reached a high price? Now, how high is high? As we know, the market is driven by emotions. No matter how much analysis has been done onto a stock, there are bound to be some outliers. There are also stocks that are unable to meet their potential no matter how much emphasis analysts allocate to the stock.
So how long will it take for stocks to be priced at their intrinsic values? No one knows for sure. If that were the case, wouldn’t investors stand a greater chance if they buy a stock on an uptrend? Buying on an uptrend symbolizes that the investor is buying on confidence. When the stock is on an uptrend, the market believes it can only go higher and the probability of the stock going higher is well, HIGH. Let us take a look at some stocks that display this characteristic:

OSIM International (Ticker: O23) is a local company that produces wellness products. It is synonymous with Singaporeans. Who wouldn’t want a message chair that costs well over $5000? Likwise the stock seemed to be doing well since the market have seen it fit to allow the share price to be on an uptrend since the start of the year.


Tripadvisor Inc (Ticker: TRIP) is a website people go to when they want to find out more about their holiday destination. The author likens this company as a monopoly of travel information and the popularity of the website feeds on itself. People contribute information to the website, in turn, they look for information they want. It’s a cycle that continues to grow and when there is an abundance of information, there will definitely be an increase in traffic to the website. Higher traffic equates to higher success rate in converting traffic to revenue. The market seems to believe in this model as well.


JP Morgan Chase (Ticker: JPM) is an investment bank based in the US. The company is doing very well under the management of its CEO. Having gone through the financial crisis, the bank is better capitalized now and as the US economy improves, banks such as JP Morgan Chase are likely to continue doing very well because they are seen as a proxy to the economy. The market agrees.


By buying on confidence, it appears that the investors stand a greater chance. The charts above are 1-year charts; buying in at several time intervals can ensure that investors catch the uptrend and make a decent return. This is not the same as buying in blindly. One has to be certain on his investment decision such as the reason why they are buying in and to consider the upsides and downsides?

Conclusion

In conclusion, investing can never be successful if one is not interested in knowing what happens around the world. The world has reached a point in globalisation where everything is interlinked. This is supportive in the case of Freeport Mcmoran. What has China slowdown got to do with the company? It is only through reading up on news, can one then form a brief investment thesis of what to buy in. Another point in mind is to always protect the downside. This is supportive in the ComfortDelgro case. Protecting the downside prevents one from catching falling knives; we never really know when the stock will stop falling. Always remember to preserve capital so that you are able to recover and come back stronger from a wrong investment.

Ref: http://dollarsandsense.sg/stock-investing-strategies-series-buy-high-and-sell-higher/

Does “Buy and Hold” actually work?

Stock investing strategies series: Does “Buy and Hold” actually work? 

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In part one of our stock investing strategies, we look at the dynamics of the popular “Buy and Hold” strategy and discuss the impact it can have on your investment portfolio.

In our previous article, we talk about some factors to consider when starting your 1st stock brokerage account. If you have already done so and are preparing to deep dive into stock investing, it is important to also understand some specific strategies. While there are many strategies available, it is only when one takes on investing with an open mind and learn to adapt to different economic situations can the person be successful in investing.

For today, we are going to discuss on the popular “Buy and Hold” strategy, which involves buying shares and holding it over long periods of time. This can be a period of 1 year to as long as 10 years. Do take note that we are focusing in on individual shares and not on index funds and that these insights are based on the writer’s observations and experiences.

Institutional Effect

When someone just started on his investing journey, the tendency to have the “Buy and Hold” mindset is very common. It is a simple strategy; once the investor is satisfied with his evaluation of the company, he buys in and holds the shares for a considerable amount of time, hoping to see the share price rise.

Note that, we used the word, “hoping”. Yes, an investor may be very confident about his evaluation of the company but one has to know that the market is driven by emotions and people react differently to macroeconomic situations. They perceive events differently; some overestimate the severity of the economic situation and sell their holdings, others underestimate the severity and see it as a buying opportunity to increase their holdings. This causes the share price to deviate from its intrinsic value. As retail investors, we also need to remember that we aren’t the only one in the marketplace. There are plenty of big institutional players such as investment funds that are consistently affecting the market as well.

The following is a case study charting the impact caused by institutional players.


On 23rd of May, ComfortDelgro Corp (Ticker: C52) dropped 12% in a single day. It turned out that the Singapore Labor Foundation liquidated 170 million shares in the company. What we can learn from this is that there are some events that we cannot possibly anticipate. After the 11% drop, did the stock go back up immediately? It didn’t, it continued to fall to $1.71, representing a further drop of 13%. It was due to the possible reversal of the Quantitative Easing program and this put downward pressure on all high-yielding investments including ComfortDelgro.

Economic Cycles

A “buy and hold” strategy does not always seem to work in all economic cycles. Let us look at a case study that is happening now. China, for the past decade has been averaging double-digit growth and it has emerged as the world’s second largest economy. When a country is growing at such rate, it has a very high consumption need. From copper, iron and steel to build skyscrapers to coal and oil to power up the country. Since then China has realized that it has been growing at the expense of the quality of the growth. It is now slowing down. And when it slows down, the world economy gets affected. From Brazil to Indonesia to Australia, these countries got hit hard because now, they export fewer resources to China. The companies operating in these segments have likewise been hit hard. Let us take a look:

Alcoa Inc. (Ticker: AA) is the world largest US-based company that produces Aluminum. Aluminum is a basic commodity that is needed to produce a wide variety of products from packaging cans to structural roofs.


Freeport Mcmoran (Ticker: FCX) is a US-based company that produces copper, which is needed for industrial purposes.


As seen in the graphs above, the shares of the companies got hit hard when there is a structural change going on in China. If an investor were to buy into these companies at a high price initially, he will be catching on the downtrend of the world commodity producers. How long would it take for these stocks to recover their losses and emerge as winning stock? Will the investor be prepared to wait out all the volatility in the stock? If the answer is yes, then the next question will be, “Can the investor deal with the opportunity cost of not allowing his money to be put to other good use?” This is an important question and it leads us to our next point.

Opportunity Cost

When the stock chart is down trending and an investor chooses not to liquidate his losing position, he is, effectively restricting himself to other opportunities available in the market. That is because his funds are tied up in this down trending stock. When an investor buys into a stock, he should already have some expectations on the share performance and for how long he is willing to hold them for. If an investor buys and holds shares, expecting it to perform but it failed to do so, he is just hogging onto funds, which could be directed to other better investment.

Shares, unlike index funds are succumbed to specific business risks and these risks are un-diversifiable. While an investor is holding on to shares, it is important for him/her to consider broad-based events that might affect not only the macro-economic environment but also isolated events that will affect the value of the shares. In our opinion, the opportunity cost is too much for an investor to bear. The sensible investor has to take on an active approach when investing in company-specific shares.

We hope this article managed to provide you with fresh perspectives on the “Buy and Hold” strategy. We will discuss another strategy next week, which is the “Buy High, Sell Higher” strategy. Do follow us on Facebook if you like to stay in touch with our articles and be exposed to more financial related articles.

Ref: http://dollarsandsense.sg/does-buy-and-hold-actually-work/

How Much Would It Cost To Live In Singapore In 2050?


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Of late, we have been hearing about how Singapore is becoming more and more expensive each year.

ECA International, a global HR consultancy firm, published a survey recently on the cost of living in various cities in the world. Unsurprisingly, Singapore’s ranking went up by 2 positions in 2016, as our island state ranked 16th.

Exhibit 1: Top 20 global rankings for most expensive cities in the world

Source: ECA International

This leads us to the next question of how expensive Singapore will be if we continue on this trajectory in the future of becoming more expensive.

But first, let us take a look at how Singapore has performed in the last few years after the Global Financial Crisis (GFC).

Inflation Has Came Down Pretty Significantly In The Last 2 Years

To start off, inflation as defined by Investopedia, is the rate at which general level of prices for goods and services is rising, and consequently, the purchasing power of currency is falling.

In short, it simply means our currency is losing its ability to buy the same amount of goods as time goes by (e.g. chicken rice today cost $3.50, compared to $2.50 10 years ago).

Inflation is generally highly correlated with the country’s gross domestic product (GDP) growth. In the last two years, GDP growth for Singapore has been at an all time low since the end of the GFC. Inflation likewise has actually been negative (i.e. deflation).

Given the current situation, we expect Singapore to enter into a new norm with low growth and relatively lower inflationary pressure in the future.

Exhibit 2: Deflation in the last two years
Source: Singapore Department of Statistics, DollarsAndSense

Food: How Much Would My Chicken Rice Cost In 2050?

We recently went to a famous food centre located in the Central Business District (CBD). A bowl of fish soup had just increased its price from $4.50 to $5.00, a staggering 11.1% increase.

Being the curious team we always are, we asked the storeowner what caused their price increment. We were told it was due to inflation. We were surprise to hear that, as we thought inflation has been declining, as seen in Exhibit 2. Why did the hawker raise his prices then?
Unlike overall inflation, food prices have never turned negative before in Singapore. Being in a country with no natural resources, we tend to be more vulnerable to prices set by others.

The average 10-year food inflation was 2.9%, slightly more than all-inflation of 2.4%. Using the 10-year food inflation rate, we should be expecting the $3.50 chicken rice today to cost about $9.16 in 2050, 2.6x the amount today.
Price Of Chicken Rice Today $3.50
Expected Price Of Chicken Rice In 2050 $9.16

Exhibit 3: Food price has never decline since 1990
Source: Singapore Department of Statistics, DollarsAndSense

Shelter: Things are not expected to be very bright here

Ever since 2009 to 2013, when cooling measures were introduced to curb the surge in housing prices, the housing market has become dull and unexciting. Price levels have been declining for multiple years. More significantly, from 2015 to 2016, inflationary pressures for housing have been in the negative zone.

Deflation for 2015 and 2016 was 3.5% and 4.1% respectively. Nonetheless, this deflationary pressure will not last indefinitely as the bulk of our wealth is still pegged to our homes. Therefore, we are expecting housing price inflation to be along the 10-year average for all-inflation at 2.4%.

What this means is that we can expect a house that cost $400,000 today to be about $902,000 by 2050, 2.3x the amount today.

Cost Of Home Today $400,000
Expected Cost Of Home In 2050 $902,000

Exhibit 4: Housing prices have been weak in the last few years
Source: Singapore Department of Statistics, DollarsAndSense

Education: A Long-Term Pain For All Of Us

Unlike housing prices, education inflationary pressures have less correlation with Singapore’s economic growth. This comes with our “Lifelong Learning” motto that we have adopted for Singapore. Inflation, on average, remains stubbornly at about 3% since the mid-90s.

Using NUS’ undergraduate tuition fees for AY06/17, the average 4-year fees would be at about $33,720 (excluding courses like dentistry, medicine, law and music).

With 3.3% education inflation rate per annum, we are looking at fees of $102,000 from today, an increase of 3.0x from today.

Cost Of Local University Education Today (4 Year Course) $33,720
Expected Cost Of Local University Education In 2050 (4 Year Course) $102,000

Exhibit 5: Education inflation stubbornly remains high
Source: Singapore Department of Statistics, DollarsAndSense

The simple conclusion here is that the amount of money that we will need for basic cost areas such as food, shelter and education would become a lot higher in the future. Hence, we need to save and invest today so that we can prepare ourselves financially for the future.
The rhetoric of earning a keep and just saving up does work well for the baby boomers because they live in an era where wages actually do keep up with inflation. However, we are living in a new world today where wages remains relatively flat while costs continue rising mercilessly.

Ref:http://dollarsandsense.sg/how-much-would-it-cost-to-live-in-singapore-in-2050/
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