015. MYR vs SGD vs USD: (2) Inflation Story

015. MYR vs SGD vs USD: (2) Inflation Story

In my last blog, I have calculated SGD is appreciating against MYR in the rate of 1.54%. So, let's say I decided to put some money in SGD. I have to decide where to put it.

Obviously, I must have a investment that can beat inflation rate in Singapore. How much is the inflation rate there?

The chart is taken from Trading Economics. Inflation rate in Singapore, for the past ten years, range from -1% to c.8%. The mean is about 3%.

Clearly 1.54% in currency appreciation in currency cannot beat inflation rate of 3%. So, the money cannot be sitting in savings account.

To make the money work harder, other investments are needed. We need to look at Fixed Deposits, unit trusts, stocks and perhaps alternative investments. Agree?