How does the budget 2013 affect you?

[Watch-lover]

As above. Do you think it will solve the problems that singapore is currently facing? I feel that the operating cost of a business is what drove business away rather than the workers shortage problem as the primary cause. With higher rental costs, electrical bills, petrol bills and COE. It's getting harder to sustain a business anymore hence the reason for them to move to other countries thats cheaper. Do you think this budget 2013 will help? Pls share your views.

[Zergju]

I think the problem is not about PAP getting too much foreigner workers...

It's giving too much PRs and citizenship out..

Foreigner workers come here to do dish washing? ok for me.
Do dish washing and get PR? nonono...

[ac_wong75]

The budget overall is a mixed feel from a business standpoint
Whilst u get incentives and breaks to improve productivity
The offset is increase levy, thus there is a lot of short term pain
But not very clear long term gains from productivity enhancements

[new]

MAS Imposes Financing Restrictions on Motor Vehicle Loans






Singapore, 25 February 2013 … The Monetary Authority of Singapore (MAS) will re-introduce1 financing restrictions on motor vehicle loans granted by financial institutions.

2 The maximum motor vehicle loan amount will depend on the open market value (OMV) of the motor vehicle purchased:


(i) For a motor vehicle with OMV that does not exceed $20,000, the maximum loan-to-value (LTV) is 60% of the purchase price, including relevant taxes and the price of the Certificate of Entitlement, where applicable; and

(ii) For a motor vehicle with OMV of more than $20,000, the maximum LTV is 50%.

In addition, the tenure of a motor vehicle loan will be capped at 5 years.2

3 The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles.

4 The financing restrictions will not apply to loans for the purchase of commercial vehicles3. They will also not apply to loans for the purchase of motorcycles.

5 The rules will take effect from 26 February 2013.4

COE Price Will Drop By Half During July....

[wolfeyes1974]

MAS Imposes Financing Restrictions on Motor Vehicle Loans






Singapore, 25 February 2013 … The Monetary Authority of Singapore (MAS) will re-introduce1 financing restrictions on motor vehicle loans granted by financial institutions.

2 The maximum motor vehicle loan amount will depend on the open market value (OMV) of the motor vehicle purchased:


(i) For a motor vehicle with OMV that does not exceed $20,000, the maximum loan-to-value (LTV) is 60% of the purchase price, including relevant taxes and the price of the Certificate of Entitlement, where applicable; and

(ii) For a motor vehicle with OMV of more than $20,000, the maximum LTV is 50%.

In addition, the tenure of a motor vehicle loan will be capped at 5 years.2

3 The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles.

4 The financing restrictions will not apply to loans for the purchase of commercial vehicles3. They will also not apply to loans for the purchase of motorcycles.

5 The rules will take effect from 26 February 2013.4

COE Price Will Drop By Half During July....

If it drops by half, it means car is more affordable = more car ownerships >> more traffic congestions? double-edge sword for this i think

[Oceanklassik]

Well, 'affordable' by whose standards? How many are willing/can afford to take out $40,000 to $50,000 cash to buy a car? How many can afford the (higher) monthly installments with the reduced loan repayment period (5 years)? Will banks and financial institutions raise the car loan interest rates, since now that they can only lend for 5 years?

[pegasi]

Smaller cars and Japanese/Korean cars, or maybe even Chinese cars, may become popular again I think.

[problmchylde]

Well, 'affordable' by whose standards? How many are willing/can afford to take out $40,000 to $50,000 cash to buy a car? How many can afford the (higher) monthly installments with the reduced loan repayment period (5 years)? Will banks and financial institutions raise the car loan interest rates, since now that they can only lend for 5 years?

Agreed. If u buy a $120k car.....u will have to cough out $60k upfront.......how many people can do dat...????

[wolfeyes1974]

Agreed. If u buy a $120k car.....u will have to cough out $60k upfront.......how many people can do dat...????

We'll be surprised... for example, people are paying higher COV for HDBs nowadays...a lot of things are against logic nowadays. Too many rich people in the small red dot.

[pegasi]

To some extent I agree with wolfeyes that Singaporean is resourceful in one way or another. I recall the old days when many people were cash tight, and so some people "worked" with the renovation contractor to get a higher loan for other purpose. Resale HDB is another example where selling prices were over declared in order to pay less COV until the authority plug the hole.

[Oceanklassik]

We'll be surprised... for example, people are paying higher COV for HDBs nowadays...a lot of things are against logic nowadays. Too many rich people in the small red dot.

I'm not surprised and I reckon many here can easily afford to pay such huge amounts in cash for car purchases, and many other luxuries in life, especially when this is a luxury watch forum. It goes to show how the rich gets wealthier and the poor gets helped, while the middle just "suck thumb"

[ac_wong75]

I think there will always be a way to get that cash for the car payment. Ie ( one can take up the personal loan to make up the short fall). As long as the person borreow can pay in this low interest env they wil try and the banks will still lend but maybe at a higher rate..

[pegasi]

Hmm...I am considering creating a forum to trade and talk cars, and name it SG-COC.

(Singapore Car Owners Club)

[Watcha]

It's a scheme to make cars affordable to those who have cash and willing to drain a larger portion of their pay monthly.

As some bro mentioned, workaround will be on the way.

IMO that doesn't stops businesses to bid high for COE as they have the cash to submit bids.
Car dealers should not bid for COE as they are not the car owners.

[dtctan]

So now is either you save to buy watches or save to buy car ... But anyway this measure will only effect the middle upper income