The Myth About Singapore Civil Service Annual Variable Bonus Of Only 0-1.5mths Annually.

This post is just for fun. I had a very good laugh after reading through this article from Salary.Sg. The funny part is that it gave everyone the impression that those working in government sectors are only given very little annual variable bonus. In a way, I myself have been misled for decades regarding the very little variable bonus in the form of the Annual Variable Component ("AVC") announcement during mid-year and end of the year.  

1. Don't be Fooled By the 0mth to 1.5mths AVC.
This is the extracted paragraph on the annual remuneration package: "Civil servants in Singapore typically receive:
-A fixed 13th-month payment (AWS)
-Mid-year AVC
-Year-end AVC
-Occasionally, one-off special payments"

The AVC portion fluctuates depending on economic conditions and government recommendations.

Year	Mid-Year AVC	Year-End AVC	Total AVC (Excl. 13th Month)
2025	0.4 month	TBD	TBD
2024	0.45 month	1.05 months	1.50 months
2023	0.3 month	0.6 month	0.90 month
2022	0.35 month	1.1 months	1.45 months
2021	0.3 month	1 month	1.30 months
2020	0 month	0 month	0 month
2019	0.45 month	0.1 month	0.55 month
2018	0.5 month	1 month	1.50 months
2017	0.5 month	1 month	1.50 months
2016	0.45 month	0.5 month	0.95 month

The above is the historical AVC for civil servants which appears to be similar or very tiny relative to the private sector (depending on whether you are in banking sector or other sector such as logistics etc).

2. What is the Actual Cumulative Variable Bonus then?

Many folks in the commercial/private sector will be shocked by what I am going to assert next. The AVC is actually not the de-facto variable bonus that everyone thought it was. There is actually another "performance bonus" on top of the Civil Service bonus. For example in 2024, if the civil service bonus is 1.5months and the "performance bonus" given is 1 month, the total variable bonus awarded for 2024 is actually 2.5 months.

Additionally, "1 month performance bonus" in government agencies actually belongs to those below mediocre ratings staff. Most folks may be getting 2-3mths of performance bonus. So the total variable bonus for 2024 maybe 4 months for the average staff (including Civil Service Bonus).

Add in 13mth annual wage supplement and wow, this is extra 5 months supplement besides the usual basic pay. 

IRON rice bowls!

3. One Should Aspire to Work in Government Agencies- BE a Civil Servant.

My sincere thoughts would be to encourage young graduates to apply to the government sector amidst the AI revolution that is causing private sector companies, such as META and Standard Chartered, that have been retrenching many staff due to AI taking over basic coding and deployment of agentic AI. Having an iron rice bowl with numerous months of variable bonus seems to be the better option for one's career in particularly for those who have no entrepreneur flair.

The only jobs that I know of within my circle that beats government civil servants are those working in local banks and pharmaceutical sector with at least 5-6mths of variable bonus.

Parting Thoughts

So does anyone think I am just BS about the above? Am I hallucinating like AI? Strange that many years ago, my friends told me that the private sector pays a lot better than the government sector and to avoid being a civil servant. 

Bitcoin Market Realities: Buying the Dip.

Hi Folks, another new video posting on my Bitcoin investment for sharing. These days video editing made easy and intuitive with AI prompts. 

 

United Hampshire US REIT Amazing Q1 2026 Results and 9% Distribution Yield.

Video version of previous posting on United Hampshire US REIT review- Please click here.

Donald Trump To Restart Attacks on Iran- Winter Is Coming!

Hi folks, Winter is coming! If you thought that your week was chaotic, wait until you see what just dropped in the Persian Gulf over the few days. Donald Trump and his buddy Netanyahu will soon be re-attacking Iran. Looks like oil supply from Middle East will be cut off for a very long time as Iran will be continuing with their blockage of the Straits of Hormuz. With oil availability tight despite US, Canada, Venezula, Russia etc ramping up oil production for exports and China curbing their oil consumption, it has been reported that prices will remain high and even rocketed. 

The Immediate Threat: Geopolitical Shortage (Days to Weeks) is what happens if Trump acts on his threat of another strike.

The Hormuz Chokepoint is causing over 14 million barrels per day of oil production to be shut in or stranded due to the de facto closure of the Strait of Hormuz. Because nearly 20% of the world’s seaborne oil transits this narrow channel, a renewed U.S. strike would likely cement this blockade through Q3 2026.

Global oil inventories are currently already being drawn down at a staggering, historic pace of roughly 4 million to 8.5 million barrels per day. Even with coordinated Emergency Stock Releases from the IEA, these storage reserves can only act as a buffer for a few months.  Refinery Starvation: Refineries outside the Middle East (particularly in Asia, which buys 75% of Gulf oil) are already slashing operations because they cannot source the specific types of crude they need. A renewed strike will immediately exacerbate the shortage of middle distillates like diesel and jet fuel, causing localized fuel rationing and skyrocketing pump prices well past $4.00 a gallon in the U.S. 

The Expected Shortage Timeline

So yes, we are already in a structural shortage covered by emergency reserves. If the ceasefire permanently collapses, those emergency buffers will rapidly deplete, threatening severe physical supply crunches for oil-importing nations very soon in another 2-3mths.Yes, this is how dire our current situation has become.

Parting Thoughts and REITs/Bonds Being Whacked Again

Sadly, my SREITs have been badly battered by the stock market this week due to the fear of inflation leading to extreme interest rate hikes that will inevitably affect their net profits. Bond funds also find their valuation being hammered from expectation of a higher interest rate environment. Haiz, nothing is safe it seems these days. Let's keep our fingers crossed that Trump is only bluffing about renewed attacks on Iran. The stubborn old man has brought much grief to the world economies.

United Hampshire US REIT Amazing Q1 2026 Results- Distribution Yield Now Around 9% Per Annum.

United Hampshire US REIT ("UHREIT") reported a strong 1Q 2026, with distributable income rising 10.0% year-on-year to US$6.9 million, driven by higher rents, active leasing and contributions from two newly acquired grocery-anchored properties. Gross revenue increased 8.7% to US$19.7 million, while net property income climbed 12.7% to US$13.2 million. Using FY2025 Distribution Per Unit (DPU) of 4.39 US cents and closing Unit Price (12 May 2026) of US$0.515 per unit, this represents a previous distribution Yield of 8.5%. Since Dover is acquired in 2nd half 2025, a high level normalisation should give about a at least 5% increase for DPU in 2026, that is around an incredulous 9% distribution yield! 

1. Recap of New Properties Driving Increase in Distribution.

UHREIT sold Albany Supermarket for US$23.8 million back in January 2025. Thereafter, it has reinvested those proceeds into higher-yielding investment properties along with debt to supplement the these acquisitions:

1(i) Dover Marketplace-Acquired on 1 August 2025.

Purchase price: US$16.4 million

Funding source: Fully funded by proceeds from the divestment of Albany Supermarket

1(ii) Wallingford Fair Shopping Center- Acquired on 22 January 2026.

Purchase price: US$21.4 million

Funding source: Partially funded by proceeds from the Albany Supermarket divestment, internal cash, and external borrowings.

2. Financial Highlights for Q1 2026

Portfolio fundamentals remained resilient. The grocery and necessity portfolio maintained 97.7% occupancy, weighted average lease expiry extended to 8.0 years, and tenant retention stayed high at 90%. Only 2.0% of leases are due for renewal in 2026, while self-storage occupancy improved to 89.2%.

The balance sheet remains stable, with aggregate leverage at 40.3%, a lower average borrowing cost of 4.91%, and no refinancing requirements until February 2028.

Final Add On

UHREIT Management remains positive on the outlook, citing resilient demand for grocery-anchored retail, limited new supply, and opportunities for further acquisitions and asset enhancements. The 9% distribution yield for 2026 and the high potential for capital appreciation made UHREIT an attractive investment. Personally, given the current good results (finally turn-around after declining financials for past few years), I would have invested additional funds into UHREIT if not for my current holdings which already made up 10% of my total portfolios which represented an extremely high concentration risk.  

Iran Thinks It Has Upper Hand Against Donald Trump Over US-Iran War- Trump Vomiting Blood.

Iran has responded to US latest proposal to stop the war and Donald Trump is either foaming from his mouth or vomiting blood after reading through it. In my previous May 4, 2026 post on the US-Iran war (US–Iran Ceasefire Or War: A Fragile Pause and What Comes Next ), I have expressed my thoughts that this will turn out to be a long protracted conflict that will never have a resolution. 

1. Brave Iranians Defy US and Bets That Donald Trump Will Not Be Able to Nuke Them

It is strange that the Iranian government is very confident that Donald Trump will never dare to use the nuclear bomb against Iran. Hence they have effectively dug in on their position for US to remove blockade first and to accept that Iranians will control the Straits of Hormuz going forward.

In life, one learns that being too extreme and over-confident may often resulted in a wrong prediction. Crazy Trump may just do what everyone thought impossible.

2, Donald Trump Never Expect A Quick War To Go Totally Wrong.

Bolden by his Venezuela kidnapping of its hostile President and working with a friendlier government, Trump is feeling invincible. Trump probably also think that an attack on Iran will also further boost his legacy by being the US President willing to deal with the Iran uranium problem.

3. Donald Cursing Benjamin Netanyahu of Israel For Dragging US Into War With Exaggerated Outcome.

Most analysts are certain that Benjamin Netanyahu has goaded Donald into his wish list for decades to deal Iran with a blow that will handicap it. He must have told Trump that now is the best time to bomb Iran to trigger a regime change. Netanyahu also further stroked Trump's ego by praising Trump's kidnapping of the president of Venezuela with minimum resources.  

Parting Thoughts

I think that the AI bubble will probably burst first rather than seeing any true peace deal materialising. The Straits of Hormuz will also re-open soon but subject to paying of extortion money to Iran. 

SG Government Finally Revised Executive Condo Purchase Rules- Just Do Away with EC Scheme.

I read in absolute amazement at the devastating new property measures released by the Singapore Government with regard to changes in conditions for buying an Executive Condo (“EC”) in Singapore. These changes will apply to government land sales from May 8, 2026 which means that it will occur somewhere in late 2027 or early 2028 given the requirement for developers to only be able sell EC 15 months after successful land bid. Many private developers and 2nd time HDB upgraders are probably cursing and swearing at the upcoming changes. 

1. Latest Changes Summarised

So for couple who decided to apply for EC and getting married soon at age 28, waiting for TOP takes around 2 years while the new Minimum Occupation Period (“MOP”) thereafter is 10 years will mean a long waiting time to flip EC of 12 years, that is age 40 already. This will definitely address the current unhealthy trend of Singaporean couples using this as a mean to get rich via property flipping. 

The increased allocation from 70% to 90% reservation for 1st time buyer will also reduce the get rich 2nd time lottery for HDB upgraders who already benefitted from the Singapore get rich via HDB lottery system in the 1st round and now asking for 2nd bite of the cherry. Additionally, this will ensure more 1st time buyers benefit from owning their first property.

2. My Personal Take- Good Measures To Control Unsustainable Rise in EC Prices

Overall, I think this is good as developers will now be very worried about selling off all units in time lest they get into trouble with the 5 years sales penalty if they are still unable to market the units off. Developers will thus be more prudent in their EC bid.

3. EC Scheme Should be Removed.

Don’t flame me but I am not exactly a fan of the current EC scheme. Our HDB government agency has lost track of its original purpose post independence to help all Singaporeans own affordable housing for a roof over their heads. Building EC takes away precious land now used to build tennis court, swimming pool & landscaping which could be used to build an extra stack of BTO. Why should all tax payers be paying for folks who want to live in luxury property at the expense of the lower income group who are more in need of subsidies?

Hence, there should just be (i) BTO and (ii) private property class in Singapore. HDB housing is for Singaporeans to live in and not for flipping upon MOP. Those who wants to speculate or invest can just go directly to the private property market. 

Parting Thoughts

Personally, I think that these new measures are long overdue and bring EC in line with the BTO Plus and Prime area programmes of 10 years MOP. For too long, many Singaporeans have been treating an EC as a mean to get free government handout in the form of subsided land rates and special CPF grant of up to S$30K. Overall, many EC flippers simply just sell away after the previous 5 years MOP rule and walk away with half a million dollars of profit or even more to upgrade to private condo or to buy a landed home without any effort. A home is primarily for living in and not for speculation. I hope that this measure will also help moderate EC prices to benefit future generation and also spur more people to be more entrepreneurial by starting their own businesses to boost the economy instead of just lying flat and waiting for money to drop down via flipping of their EC for sure-win lottery gains.