Investment Income for Life
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Sunday, 1 November 2026
Is 13% Yield Too Good to Be True? Inside JEPI & JEPQ and My Personal Pick.
Margin Loan Showdown: Online Brokers vs Bank Brokers in Singapore.
Thursday, 29 October 2026
Aztech Global (SGX: 8AZ) Crashes 62% – What Went Wrong and Is It Time to Bottom-Fish?
The market aggressively re-priced the stock after a string of weak financial updates. The latest Q3 2026 business update confirmed that the tech slowdown is biting hard:
•
Top-line collapse: Q3 2026 revenue plummeted
39.8% year-on-year to S$80.4 million.
•
Profit plunge: Q3 2026 net profit also fell
39.8% to S$6.5 million.
•
Nine-month picture: Cumulative net profit for 9M
2026 cratered 40.9% to S$15.9 million.
This came on
the back of an already weak first half, where revenue fell 18.4% to S$151.4
million and net profit dropped 41.7% to S$9.4 million. And note that the 1H
number was flattered by a one-off S$2.5 million gain from selling a property in
Dongguan, China. Strip that out and core earnings look even thinner.
Aztech is essentially an electronics manufacturing services (EMS) player that designs and builds IoT devices, smart home products and data-communication equipment for global brand owners. When consumer electronics demand softens, Aztech feels it almost immediately.
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| Past 12mths Market Price |
Contract manufacturing is a tough business. Aztech faced stiffer competition and had to accept lower pricing to keep volumes flowing, which squeezed margins. Net profit margin in 2Q 2026 was just 6.2%, down from 10.2% a year earlier.
Currency was
another headwind. In the first half alone, Aztech booked a S$2.8 million
foreign exchange loss due to the weaker US Dollar. Since most of its sales are
in USD while it reports in SGD, a soft greenback directly erodes the bottom
line.
With little visibility on FY2027 earnings, the research houses turned decisively bearish:
•
DBS Group Research halved its target price from
S$0.66 to S$0.33 in October 2026, maintaining a "Fully Valued" (Sell)
call.
•
Consensus EPS estimates for FY2026 were slashed
from S$0.057 to just S$0.023.
When
earnings estimates get cut by more than half, the share price usually follows.
That is exactly what we have seen here.
This is the part that hurts income investors the most. Aztech entered this cycle sporting a headline trailing yield of close to 30%, boosted by generous special dividends paid out of its big cash pile in earlier years. But a trailing yield only tells you what was paid, not what will be paid.
With profits
shrinking and free cash flow no longer comfortably covering such heavy payouts,
the market quickly priced in a dividend cut. The interim dividend for 1H 2026
was just 0.5 cent per share, half of the 1 cent paid for 1H 2025.
Income-focused holders rushed for the exit, adding fuel to the sell-off.
To be fair, Aztech is not a company in financial distress. As at 30 June 2026, it still had a net cash position of about S$190.6 million. With roughly 772 million shares outstanding, that works out to around S$0.25 per share in net cash. At S$0.40, close to 60% of the share price is backed by cash on the balance sheet.
The company
also remains profitable and has been winning new projects and customers in
areas like MedTech, security and industrial segments. So the business is not
broken; it is shrinking in a cyclical downturn.
My personal thought and concern here is that Aztech’s past substantial owners have this habit of offering to take the company private using a low-ball offer and then after a few years, they will re-list part or all of the business in another form. With the huge plunge, the current low share price may become a target to do a buy-over at the worst possible time & price. I will continue to stay far far away from this stock.
Ok folks,
that's all from me today. Have a great week ahead!
Disclaimer: This post is for educational purposes only and is not a recommendation to buy or sell any security. Please do your own due diligence or consult a licensed financial adviser before investing.
Tuesday, 27 October 2026
Singapore Geothermal Energy Potential at 60 Times of Current Annual Power Requirement! Singaporeans, Please Stop Quarrelling With Indonesians Government Supporters Online.
At the Singapore Energy Lecture on 26 October 2026, Minister Dr Tan See Leng shared that a geophysical survey estimated Singapore’s geothermal technical potential at more than 60 times our annual electricity consumption of around 60 TWh. High-temperature resources were found several kilometres underground. EMA has appointed a Surbana Jurong and GLJ consortium to run a feasibility study of about 15 months from end-2026, covering safety, technical viability and cost.
About 95% of our electricity comes from imported natural gas. Solar is intermittent and land-hungry. Geothermal, by contrast, is home-grown, clean and runs 24/7, the energy version of a reliable dividend stock that pays every month without fail. My last post only talked about nuclear as our energy “fifth tap”. Geothermal now gives us a possible sixth. Together, they could move Singapore from near-total import dependence towards real energy self-sufficiency.
A dose of
realism though. Technical potential is not the same as economically
recoverable. Deep drilling is costly, safety comes first in a dense city, and
no decision to deploy has been made yet. Think of this as a promising
exploration result, not a producing oil field. Still, far better than a dry
well.
To my fellow Singaporeans: please stop arguing with Indonesian government supporters online over the haze and gas cut. These debates are impossible to win and meaningless. Nobody changes their mind because of a clever comment, and the noise only feeds politicians who like painting Singapore as the villain. Ordinary Indonesians suffer from the haze as much as we do. Talk is of no use, and keyboard wars do not keep the lights on.
4. Lay Low and Build
Singapore
beat the water threats not by shouting, but by quietly building NEWater and
desalination plants. Energy should follow the same playbook. Lay low and build
up our nuclear and geothermal capabilities for self-sufficiency. The groundwork
is already happening: five new power plants will come online between 2026 and
2031, and Sembcorp will get conditional approval to import up to 1.3 GW of
renewable electricity via Peninsular Malaysia. Every new source is one less
lever anyone can pull on us.
Laying low does not mean rolling over. The proper channel is our PM and ministers. PM Lawrence Wong has said Singapore expects all parties to honour their commitments, and Gas Supply will check for any breach of contract and pursue remedies if needed. Indonesia insists the cuts are within contract limits, but coming right after threats against countries that “disrespect” it, the spirit of a reliable partnership has clearly been dented. Our leaders must respond firmly through proper channels. Total silence would signal such moves are cost-free and invite more gas cuts.
Energy security is now a firm national priority, which usually means sustained capital spending. Sembcorp Industries and Keppel Ltd sit right in this theme through power generation, regional imports and low-carbon projects. Geothermal itself is a long-dated story with no quick trade, but a Singapore that generates more of its own power is a safer home for capital, businesses, data centres and our REITs. As always, this is my personal view, not financial advice.
Overall, I am happy. Nuclear plus geothermal could be a real game changer for a country long thought to have no natural resources. Let our leaders handle the diplomacy and let our engineers do the quiet work,
Ok folks,
that’s all from me today. Have a great week ahead!
Monday, 26 October 2026
SGX REIT Data- As at 23 October 2026 Closing.
| No. | Name of REIT | SGX Code (Ccy) | Unit Price Close 23 Oct 2026 | NAV / Unit (as at) | Premium / Discount | Payout Freq. | Last Routine Distribution | Annualised Distribution | Fwd Dist. Yield | Aggregate Leverage | Sector |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | CapitaLand Integrated Commercial Trust | C38U (SGD) | S$2.300 | S$2.1530 Jun 26 | +7.0%Premium | HY | S$0.06021H26 | S$0.1204 | 5.23% | 37.4% | Integrated REIT |
| 2 | CapitaLand Ascendas REIT | A17U (SGD) | S$2.230 | S$2.2730 Jun 26 | -1.8%Discount | HY | S$0.07481H26 | S$0.1496 | 6.71% | 39.7% | Industrial |
| 3 | CapitaLand Ascott Trust | HMN (SGD) | S$0.820 | S$1.14530 Jun 26 | -28.4%Discount | HY | S$0.02531H26 | S$0.0506 | 6.17% | 37.7% | Hospitality |
| 4 | CapitaLand China Trust | AU8U (SGD) | S$0.610 | S$1.0430 Jun 26 | -41.3%Discount | HY | S$0.02451H26 | S$0.0490 | 8.03% | 40.4% | Integrated REIT |
| 5 | CapitaLand India Trust | CY6U (SGD) | S$0.870 | S$1.2330 Jun 26 | -29.3%Discount | HY | S$0.04001H26 | S$0.0800 | 9.20% | 38.0% | Integrated REIT |
| 6 | Mapletree Industrial Trust | ME8U (SGD) | S$1.800 | S$1.6330 Jun 26 | +10.4%Premium | Qtr | S$0.03111Q FY26/27 | S$0.1244 | 6.91% | 37.5% | Industrial |
| 7 | Mapletree Logistics Trust | M44U (SGD) | S$1.090 | S$1.2630 Jun 26 | -13.5%Discount | Qtr | S$0.01821Q FY26/27 | S$0.0726 | 6.66% | 40.5% | Industrial |
| 8 | Mapletree Pan Asia Commercial Trust | N2IU (SGD) | S$1.170 | S$1.7330 Jun 26 | -32.4%Discount | Qtr | S$0.01961Q FY26/27 | S$0.0784 | 6.70% | 37.7% | Integrated REIT |
| 9 | Keppel DC REIT | AJBU (SGD) | S$2.130 | S$1.7330 Jun 26 | +23.1%Premium | HY | S$0.05711H26 | S$0.1143 | 5.37% | 34.0% | Data Centre |
| 10 | Keppel REIT | K71U (SGD) | S$0.815 | S$1.2230 Jun 26 | -33.2%Discount | HY | S$0.02611H26 | S$0.0522 | 6.40% | 40.0% | Commercial |
| 11 | Acrophyte Hospitality Trust | XZL (USD) | US$0.225 | US$0.6830 Jun 26* | -66.9%Discount | HY | Suspended | – | 0.00% | 44.0% | Hospitality |
| 12 | AIMS APAC REIT | O5RU (SGD) | S$1.400 | S$1.2730 Jun 26 | +10.2%Premium | Qtr | S$0.02572Q FY27 | S$0.1028 | 7.35% | 24.9% | Industrial |
| 13 | Alpha Integrated REIT | M1GU (SGD) | S$0.475 | S$0.5330 Jun 26 | -10.4%Discount | HY | S$0.02031H26 | S$0.0406 | 8.55% | 34.9% | Industrial |
| 14 | BHG Retail REIT | BMGU (SGD) | S$0.460 | S$0.7330 Jun 26* | -37.0%Discount | HY | S$0.00121H26 | S$0.0024 | 0.52% | 40.1% | Retail |
| 15 | CDL Hospitality Trusts | J85 (SGD) | S$0.705 | S$1.3730 Jun 26 | -48.5%Discount | HY | S$0.02151H26 | S$0.0430 | 6.10% | 35.3% | Hospitality |
| 16 | Centurion Accommodation REIT | 8C8U (SGD) | S$1.040 | S$0.8730 Jun 26 | +19.5%Premium | HY | S$0.03501H26 | S$0.0700 | 6.73% | 29.9% | Hospitality |
| 17 | Daiwa House Logistics Trust | DHLU (SGD) | S$0.400 | S$0.6330 Jun 26 | -36.5%Discount | HY | S$0.01821H26 | S$0.0364 | 9.10% | 40.1% | Industrial |
| 18 | Digital Core REIT | DCRU (USD) | US$0.440 | US$0.7930 Jun 26 | -44.3%Discount | HY | US$0.01801H26 | US$0.0360 | 8.18% | 39.2% | Data Centre |
| 19 | Elite UK REIT | MXNU (GBP) | £0.305 | £0.4430 Jun 26 | -30.7%Discount | HY | £0.01551H26 | £0.0310 | 10.16% | 34.8% | Commercial |
| 20 | ESR REIT | 9A4U (SGD) | S$1.990 | S$2.5030 Jun 26 | -20.4%Discount | HY | S$0.11251H26 core | S$0.2250 | 11.31% | 41.4% | Industrial |
| 21 | Far East Hospitality Trust | Q5T (SGD) | S$0.510 | S$0.87530 Jun 26 | -41.7%Discount | HY | S$0.01631H26 | S$0.0326 | 6.39% | 32.8% | Hospitality |
| 22 | First REIT | AW9U (SGD) | S$0.176 | S$0.2330 Jun 26 | -23.5%Discount | HY | S$0.00981H26 | S$0.0196 | 11.14% | 45.7% | Medical |
| 23 | Frasers Centrepoint Trust | J69U (SGD) | S$2.180 | S$2.3230 Sep 26 | -6.0%Discount | HY | S$0.06212H FY26 | S$0.1243 | 5.70% | 38.7% | Retail |
| 24 | Frasers Logistics & Commercial Trust | BUOU (SGD) | S$0.905 | S$1.1231 Mar 26 | -19.2%Discount | HY | S$0.02951H FY26 | S$0.0590 | 6.52% | 33.7% | Integrated REIT |
| 25 | IREIT Global | UD1U (SGD) | S$0.166 | S$0.4630 Jun 26 | -63.9%Discount | HY | €0.0037 (≈S$0.0055)1H26 | S$0.0110 | 6.61% | 45.5% | Commercial |
| 26 | KORE US REIT | CMOU (USD) | US$0.148 | US$0.7030 Jun 26 | -78.9%Discount | HY | US$0.00401H26 | US$0.0080 | 5.41% | 43.3% | Commercial |
Sunday, 25 October 2026
Gas Cuts, Conspiracy Theories and Hot Air: Indonesia’s Dirty Playbook Against Singapore.
Hi Folks, welcome back to Investment Income for Life. Today’s post is a
little different from my usual dividend and portfolio updates. Over the past
two weeks, Singapore has found itself on the receiving end of some rather
hostile words, and now actions, from across the Straits. As investors living in
a small, resource-poor city-state of Singapore, I think it is worth stepping
back and asking what this episode tells us about risk, resilience and where
Singapore needs to go next.This year’s haze has been the worst since 2015. The 24-hour PSI peaked at 230 on 18 October, and for a few days Singapore was ranked among the most polluted cities in the world. Our government decided enough was enough. NEA sent legal notices to 10 companies over fires believed to be on their land, SGX queried seven listed agricultural firms about their operations and possible links to the haze, and Senior Minister K Shanmugam made it clear that companies would not escape responsibility.
The response from Jakarta was not cooperation, but retaliation. On 22
October, Indonesia’s Coordinating Minister for Downstreaming and Energy
Transition, Bahlil Lahadalia, warned that he would evaluate energy export
agreements and would not hesitate to consider stopping exports to countries
that do not respect Indonesia. He did not name Singapore, but nobody needed a
map to figure out who he meant. Two days later, on 24 October, Indonesia cut
pipeline gas exports to Singapore by about 9%, officially to divert supply for
domestic electricity needs in Batam, Bintan and Sumatra. Convenient timing,
wouldn’t you say?
The good news is that EMA has said the reduction amounts to less than 2%
of Singapore’s total daily gas demand of more than 1,000 BBTUD, and contingency
plans are in place. The lights stay on. But the message behind the move is what
matters.
Around the same time, MSCI said it expects to remove Indonesia from its global indices unless the market makes major improvements in governance. Indonesian stocks tumbled by the most since the 1998 Asian Financial Crisis. MSCI’s concerns are hardly a secret: shareholding opacity, insider trading and weak regulatory enforcement. A final decision is expected by 30 June 2027.
Instead of looking inward, former Indonesian trade minister Muhammad
Lutfi took to Instagram and alleged that Temasek and GIC had pressured MSCI to
threaten a downgrade, triggering mass panic so that Singapore could buy up
Indonesia’s best assets on the cheap. Temasek called the allegations baseless
and patently untrue, and GIC pointed out it has invested in Indonesia for more
than 30 years.
Here is the part I find most telling. Even the president director of the
Indonesia Stock Exchange, Jeffrey Hendrik, publicly defended MSCI’s
independence. CNN Indonesia also noted there was nothing in MSCI’s announcement
to support Lutfi’s claims. Folks, when your own stock exchange will not back
your conspiracy theory, it is probably time to put the phone down. Index
providers reclassify markets based on investability and governance, not on the
wishes of a neighbouring sovereign fund. Blaming Singapore for MSCI’s verdict
is a bit like blaming the thermometer for your fever.
This is not new. Every few years, some Indonesian politicians reach for the Singapore card. During past haze crises, one minister complained it was “insulting” that Singapore offered only one aircraft to fight the fires, and another blamed the wind. This year, the head of Indonesia’s government communications agency told us that when there is no haze, Indonesia sends us oxygen. You really cannot make this up.
To be fair, SM Shanmugam was careful to say these views do not reflect
the wider Indonesian government or public, and President Prabowo has been
making efforts on the haze. Ordinary Indonesians suffer from the haze as much
as we do, if not more. But in my view, a small but loud group of politicians
finds it far easier to point at the little red dot than to explain to their own
people why the economy is struggling, why governance problems are spooking
global investors, and why the same plantation fires keep burning year after
year. A foreign bogeyman is a cheap distraction from domestic hardship and poor
governance.
Older readers will remember that Singapore has been here before. For decades, we depended heavily on Malaysia for water, and whenever relations soured, certain Malaysian politicians, Dr Mahathir being the most famous, would raise the spectre of turning off the taps or renegotiating the price. It was leverage, plain and simple.
Singapore’s answer was not to shout back. It was to invest. NEWater and
desalination turned water from a vulnerability into a national strength, and
today the “Four National Taps” mean no single neighbour can hold us hostage.
The threats did not stop because Singapore won the argument. They stopped
working because Singapore removed the leverage.
Energy is our modern-day water problem. The vast majority of Singapore’s electricity is generated from natural gas, and a meaningful portion of that gas still arrives by pipeline from Indonesia. This week’s 9% cut is small in absolute terms, but it is a clear signal that gas supply can and will be used as a political weapon.
I see two things Singapore must do. First, diversify our LNG sources
aggressively across more supplier countries, so that no single exporter can
squeeze us. Second, and more importantly, Singapore should seriously embark on
building small modular light-water nuclear reactors on home soil. Modern
reactor designs are far smaller and safer than the plants of the past, they run
around the clock regardless of weather, and they produce no carbon. Just as
NEWater freed us from water threats, home-grown nuclear power could free us
from energy threats. It will take years of planning, regulation and public
engagement, which is exactly why we should start now, not during the next
crisis.
Let me put on my investor hat for a moment. First, governance risk in Indonesian equities is real and now has a deadline attached. If MSCI follows through in 2027, passive fund outflows could weigh on the market for some time. Investors with direct Indonesian exposure, or funds heavy in Indonesia, should know what they own and why.
Second, keep an eye on the SGX-listed plantation and agribusiness names
that were questioned over the haze. Regulatory scrutiny and reputational risk
can hit valuations, as we saw when several of these counters slipped after SM
Shanmugam’s remarks.
Third, and on a more positive note, episodes like this tend to accelerate
investment in Singapore’s energy security, from LNG infrastructure and regional
power imports to longer-term clean energy. That is a theme worth following for
long-term investors. As always, this is my personal view and not financial
advice, so do your own homework.
Singapore cannot choose its neighbours, and we should always aim for good relations with Indonesia, a country of great people and enormous potential. But hope is not a strategy. The lesson from water applies equally to energy: the best response to threats is to quietly build our way out of dependence. When our vital resources are secure, the bluster from across the Straits becomes just noise, and we can get back to what we do best, which is building wealth and income for life.
Ok folks, that's all from me today. Have a great week ahead!





