Beware of the Nanning Pyramid Scam- More Prevalent Than You Think in Singapore.

Hi folks, good day to all. The notorious Nanning Pyramid scam that generated much media interest recently is actually quite prevalent in Singapore for at least 8-10 years already. So I was surprised our local media only got wind of it now. I have neighbours in my estate area that have on various occasion, asked me to fly down with them to take a look at the "business opportunity" there in Nanning. The neighbours will be very mysterious and you will not be able to find out much information until you are at Southern China itself. All they tell you is this is something that the China Government is offering overseas Chinese opportunities to get rich by investing in the development of Nanning. Something like an incentive to pull back overseas Chinese back into China and to reward those who are willing to pump in money for the development of China. This is actually nothing but a Ponzi scheme....there is no actual development asset or products being invested. The S$30K to S$50K special investment club membership is used to line the pockets of all the uplines. For you to make money, you will need to go around bringing in more fresh meat into the club.

1. Why So Many People Got Scammed?

The main problem is that many respectable and smart people are already in it and marketing it vigorously. For example, one of my neighbours is an astute businessman and another one I recalled is an ex-police force officer. They kept showing off on the luxurious hotels they get to stay while in Southern China as well as the exorbitant delicious breakfast, lunch and dinner offered to them daily. So if, many of these smart folks are already in it, you would think that this investment scheme is legitimate.

2. Why Hard For Our Local Authorities To Stop It?

I guess the main problem is that this investment scheme actually happened only when you fly over to Southern China where the local head office scammers will start their pressurised sales pitch to influence you to sign it. This thus does not take place in Singapore. 

Additionally, the neighbours or friends who sold you the product are also victims themselves (just that they do not know it) and they really did receive commission by bringing in people to the investment club hence they will state that they thought this "investment" is working well. 

Parting Thoughts

I cannot be bothered to fly down to Southern China to enjoy the sumptuous meals and luxurious hotel stay albeit the persistent marketing by my neighbours. Where got free lunch in this world and also China rewarding overseas Chinese of foreign countries with business opportunities? So Folks, please be very careful when your neighbours and best friends approached you to fly down to Nanning or other Chinese Cities to take part in special investment schemes curated by China authorities to help overseas Chinese. This is really BS.....you might just get arrested and thrown into prison by the Chinese Police like what happened to the 52 Singaporeans in Guangxi Province being arrested and now languishing in Chinese prison since July 2026.

Keppel DC REIT Management Screwed Existing Unit-Holders again With Private Placement.

Hi Folks, welcome back to Investment Income for Life. While the media and many folks are heaping praises at Keppel DC REIT ("KDC") latest announcement on 2 new acquisition of modern hyperscale type data centres in Tokyo on September 1, 2026 for S$1.5 billion, I was extremely disappointed that the senior management of KDC has once again chosen the private placement route instead of conducting a rights issue to raise funds among existing unit-holders. This leads to instant dilution of existing unit-holders. There is also the issue of a lack of basic respect for loyal unit-holders. 

1. Quick Recap
On 1 September 2026, Keppel DC REIT announced that it will acquire an 88.62% effective interest in two freehold hyperscale data centres in Inzai, Greater Tokyo. Keppel itself will hold another 1.38%, with the existing operator retaining 10%. The total transaction value is about ¥190 billion (~US$1.2 billion / S$1.5 billion).

The interesting part is that the assets are:

• Fully occupied

• Leased to four investment-grade customers

• Three of those customers are new to Keppel DC REIT

• Expected to be immediately DPU-accretive

• Expected to increase Japan's contribution to portfolio rental income from about 9% → 23%

• Singapore will still account for roughly 60% of rental income.

Keppel says that, on a pro-forma FY2025 basis, the acquisition would have increased DPU from 10.381¢ to 10.649¢, or approximately +2.6%.
 
2. Substantial Equity Fund Raising
To help fund the acquisition, Keppel DC REIT launched a private placement initially targeting at least S$600 million.

Eventually, the placement was subsequently upsized to S$625 million because of strong demand. The new units were priced around S$2.096–S$2.142, so existing unitholders face some dilution, although the acquisition is expected to more than compensate through DPU accretion of 2.6%.

Parting Thoughts
The final issuance price for the private placement is priced at S$2.10 per unit. Based on the market trading price of S$2.23 as of noon of September 7, 2026, this represented a discount of +5.8% to market price which is equivalent to more than one year of dividends given out by KDC for its unit-holders. This is certainly very unfair treatment on existing unit-holders by the senior management of KDC. 

The only consolation is that as per the usual practice before any additional equity placement, an estimated dividend of S$0.02261 per unit from July 1, 2026 to September 9, 2026 was declared for early payment. Ex-date of dividends is on September 9, 2026 and payment date on November 23, 2026.

Ok folks, that's all from me today....bye for now. Time for me to drink more cooling herbal tea.....

Surprise Windfall for Singaporeans Post National Day Rally And Recap of Mah Bow Tan Refusal To Raise Income Ceiling Limit for HDB.

Wow, freebies literally rained down during the 2026 National Day Rally on 23 August 2026 by our Prime Minister Lawrence Wong. Baby bonus will be increased and in addition, child aged 1-16 years old will get S$2K per year per child credited to the parents' bank accounts. An extra S$10K will also be given to top up the Post Secondary Education Account (PSEA) for a child at age 17 years old. Interestingly, the eligibility for a new BTO HDB flat got increase again from S$14K combined income to S$16K combine income. This reminds me of Mah Bow Tan who had stubbornly refused to increase the decades of S$8K combined income ceiling limit to help young Singaporeans who had went past this unfair limit. I was a victim of his housing policy then. So were my friends who had a hard time balloting for new BTO under him. 

1. Mah Bow Tan- The Minister Who Refused To Increase the Combined Income Ceiling Limit of S$8K that has been there for 17 years despite annual inflation.

The S$8,000 monthly household income ceiling for new HDB flats remained unchanged for 17 years. This is absurd considering salaries of the people have increased and also effects of inflation.

• Introduced: December 1994 (raised from S$7,000).

• Revised: August 2011 (raised to S$10,000). 

2. Key Justifications Used Under Mah Bow Tan
During his tenure as Minister for National Development (1999–2011), Mah Bow Tan defended maintaining the S$8,000 cap during parliamentary debates and media briefings using several core arguments:

• Covering the Majority (80th Percentile Benchmark):

The government maintained that public housing subsidies must be targeted effectively due to finite public resources. In a 2009 parliamentary reply recorded in the Telescope Government Transcript, Mah Bow Tan stated that the S$8,000 ceiling already covered roughly 80% (8 in 10) of Singaporean resident households, arguing it remained generous by public policy standards.

 

• Targeted Help for Lower-Income Groups:

Rather than raising the top ceiling—which would increase competition for new flats—the ministry preferred introducing targeted subsidies for lower-to-middle income families, such as the Additional CPF Housing Grant (AHG) in 2006.

 

• Availability of Market Alternatives for Higher Earners:

Households earning above S$8,000 were directed to alternative options without tapping subsidised Build-To-Order (BTO) flats:

• Open-market resale HDB flats (which carried no income ceiling).

 

• Executive Condominiums (ECs) for the "sandwiched class" earning between S$8K to S$10K.

• Design, Build and Sell Scheme (DBSS) flats. 

• Mortgage Servicing Ratio (MSR) Definition of Affordability:

Affordability was defined through monthly debt service ratios, asserting that as long as mortgage servicing remained within 30% to 35% of household income (often fully payable via CPF without cash outlay), HDB pricing remained within reach for eligible cohorts. 

3. The 2011 Policy Shift
Following the May 2011 General Election, where housing supply shortages, escalating resale Cash-Over-Valuation (COV), and the squeeze on middle-income buyers became prominent national concerns, the government underwent a major leadership transition and policy reset:

1. Ministerial Transition: Khaw Boon Wan replaced Mah Bow Tan as Minister for National Development in May 2011.

 

2. Income Ceiling Revision (August 2011): Announced at the National Day Rally, the BTO income ceiling was raised from S$8K to S$10K, and the EC income ceiling was raised from S$10K to S$12K.

 

3. Supply Ramp-Up & De-linking: The ministry massively ramped up BTO flat construction (to 25,000 flats annually) and subsequently delinked new flat prices from resale market fluctuations to stabilize affordability.

 

4. DBSS Discontinuation: The DBSS framework was suspended and phased out after controversies surrounding peak pricing (e.g., The Peak @ Toa Payoh and Centrale 8 in Tampines).

Parting Thoughts

Personally, I am glad that Mr Khaw Boon Wan took over and replaced Mah Bow Tan and went on to tackle the housing crisis in Singapore. I am glad that Mah Bow Tan eventually retired from politics. These days, more rational ministers are in charge and I hope housing policies stay this way for the greater good of the people.

3 Points on DBS Passive Income DigiPortfolio and Comparison Against Endowus.

Hi Folks, today's post is for sharing of my own experience for those who are already buying ETFs and Unit Trusts from online platforms. I have been investing into an income portfolio offered by the Development Bank of Singapore ("DBS Bank"). I like the user-friendly and ever evolving DBS App. It allows one to move seamlessly from banking to wealth management within a single App. Nevertheless, I have decided to end my investment on the DBS Bank App platform for the following reasons:

1. It takes 7-9 Working Days to Fully Liquidate Relative to Other Platforms 2-3 working days.

This is an extremely painful part. If you need funds urgently and try to do partial liquidation, the DBS App takes a super long time to process and return the cash back to your savings account. I initiated a liquidation order on 8th August 2026 (Saturday) and only received the fund on 20th August 2026. Excluding the weekend and public holiday, this process took an astounding 8 working days to complete which is really out of the world. 

My other platform, Endowus, easily complete liquidation process in  2 to 3 working days.

2. Distribution from DBS Digi Income Portfolio Payout only Once Every Quarter.

The payout of distribution from the managed portfolio of unit trusts is only done once per quarter relative to its competitor once every month.

3. Cost of Funds Management Fees Not Transparent Enough and On High Side

The cost of management fees on platform is 0.75% for DBS Bank while Endowus Higher Income portfolio is only 0.25%-0.6% (depending on amount of fund investment). Additionally, there is no information on trailer rebate from DBS Bank hence I assume DBS will eat up trailer fees rebate from the underlying Unit Trusts. This is vastly different from Endowus which will give back trailer fees directly to you.

Parting Thoughts

The funny thing for me is that this is the 2nd time I tried DBS Bank Digital Portfolio as I thought that maybe their Income product has improved. I think the App interface has definitely improved over time but the above downsides are always at the back of my mind. Summarising and based on current experiences, I will just retain Endowus as my one and only unit-trust purchase platform.

Honey Money Concluded that REITs Does Not Work For Him From 2022 Experiment Till Now.

Hi Folks, welcome back to Investment Income For Life. This will be a short post. Interestingly, I came across a Youtube video from local Finance Influencer Chris Honey Money recently on why he sold off all his REITs. Basically, he did a 4-Year Experiment: In 2022, Chris scaled down his Syfe REIT+ portfolio to SGD 1,000 to track its long-term performance. The results were extremely disappointing for him. He asserted that after four years (with all dividends reinvested and management fees deducted), his Syfe REIT portfolio value dropped to SGD 998.70 (a loss of SGD 1.30). Then Chris went on to do a market benchmarking by mentioning that during a similar period, the broader Singapore market (STI) recovered and grew significantly (e.g., +23.5% in 2024 and +28.6% in 2025), whereas S-REITs struggled due to prolonged high interest rates.

BK's Thoughts

I thought it was really strange that Chris mentioned that he ended up with a loss on his Syfe Holdings since 2022. 2022 was actually the year whereby the US Fed did very aggressive rate hike from 0.25% to 4.50% within a year. Therefore, if one had bought REITs in 2022 and before the COVID period of a decade long super low interest rate environment, then it would be blatantly obvious that your SREIT holding will be biting the dust. But if you have been holding REIT for a decade (long term) or topping up or accumulating REITs at that juncture, you will be making great capital gain and also super high distribution yield of 10%+ on cost. You folks can refer to our friend at Investmoolah and his acquisition of United Hampshire US REITs during the downturn in SREIT market prices.

Personally, I can only conclude that Chris's short experiment and result conclusion are very strange indeed as it is too short an experiment. Also, if you were holding on long term to REITs, your dividends distribution would have way covered the decline in the capital value of your REITs at this juncture despite SREIT still being in doldrum mode. Anyway, I still believe that holding REITs is necessary for my own retirement portfolio. 

Ok folks, have a great week ahead and may you all be well and happy always!

Strait of Hormuz: Season 47 of the World’s Longest-Running Soap Opera (Thanks to Donald Trump).

Haiz... here we go again. If you thought daytime soap operas had too many dramatic cliffhangers, recycled plotlines, and evil twins, welcome to the never ending US-Iran fiasco.  Just when you think the writers have run out of material, a senior Iranian official pops up on Reuters to announce that Tehran is ready to escalate tensions in the Strait of Hormuz and launch a "timely and precise" military attack if Uncle Sam doesn't fully implement an interim peace deal within weeks.

Iran's goal? Breaking the U.S. naval blockade and trapping the US in a forever war. Our reaction? A heavy, collective sigh. Seriously, this never-ending soap opera has been extremely painful for everyone and frankly, the scriptwriters aren't even trying to be original anymore.

1. The "Countdown Clock" Tactic

Let's look at the classic playbook at work here:

• The Ultimatum: A high-stakes deadline ("in a matter of weeks!").
  
  
• The Threat: Choking off one of the world's most critical oil transit chokepoints where a fifth of global petroleum moves.
  
  
• The Market Reaction: A sharp spike in Brent crude, an adrenaline shot to defense contractors, and instant palpitations for central bankers trying to declare victory over inflation.
  
  

Every few quarters, we get a variation of this exact press release. Oil markets jump on cue, energy traders make a frantic dash to their Bloomberg terminals, and retail investors wonder if they should start stockpiling canned tuna and crude oil in their bathtubs.

2. The Income Investor’s Survival Guide to Geopolitical Noise

As dividend and income investors, our job isn't to play amateur four-star general on social media. Our job is to keep that steady stream of passive cash flowing into our accounts while the world huffs and puffs. Here is how we look at this melodrama:

1. Energy Dividends Stay Resilient: If you hold quality integrated energy giants or infrastructure pipelines, these geopolitical flare-ups generally provide solid cash-flow support. High oil prices translate to strong dividend coverage and buybacks.
   
   
2. Market Fatigue is Real: Markets hate uncertainty, but they have also developed severe fatigue from repeated geopolitical threats. Notice how every "imminent escalation" causes a temporary tremor rather than a structural collapse of profitable businesses.
   
   
3. Volatility Creates Yield Bargains: Whenever headlines scream panic, irrational dips occur across great income-producing assets (REITs, dividend aristocrats, utilities). Those panic sales are often prime buying opportunities for cash-rich investors looking to lock in elevated yields.
   
   

3. The Bottom Line: Keep Calm and Collect Dividends

Will tensions flare? Probably. Will diplomats scramble at the 11th hour to kick the can down the road? Almost certainly. It’s the standard choreography of international posturing.

So while Tehran and Washington exchange dramatic barbs across the Persian Gulf, we will continue doing what we do best: staying diversified, reinvesting those dividend checks, and refusing to let sensational headlines derail our long-term financial freedom.

Ok folks, let's keep our fingers crossed that above are just plain threats and that there will not be any missiles & bombs being used which is going to lead to more tragic loss of lives. 

The Strange Case of Genting Singapore- Decline In Half Year 2026 Profits But Share Price Shot Up.

Hi Folks, welcome back to Investment Income for Life! If you ever needed proof that Mr. Market occasionally drinks his morning coffee with a dash of tequila, Genting Singapore’s latest 1H 2026 announcement on August 13, 2026 is one such example. In standard textbook finance, when profits drop off a cliff, share prices usually follow them down with a parachute that fails to open. But this past 2 weeks? The house rules got turned completely upside down. I have been busy buying shares of Genting Singapore before the announcement using cash. Additionally, I had sold off my SRS bond fund to prepare for redeployment into Genting Singapore stock (since it seems undervalued to me) but post-announcement, the share price movement caught me off guard.

Extract of Genting 1H FY2026 Results

1. THE COLD HARD NUMBERS: WHAT HAPPENED IN 1H 2026?

• Profits Took a Tumble: Net profit slid substantially by a whopping -34% year-on-year, hit by higher operational expenses and shifting tourist spending habits across the integrated resort.

• Gaming vs. Non-Gaming Tug-of-War: VIP rolling chip volume softened as high rollers tightened their purse strings, while non-gaming revenue (theme parks and hospitality) held the fort thanks to upgraded attractions.

• CAPEX Heavy Lifting: Heavy reinvestment into RWS 2.0 expansion and rising depreciation costs chewed directly into operating margins.

• The Dividend Anchor: Despite the bottom-line haircut, the board maintained an interim payout of 2 cents (annualised dividend yield of 6%), leaning heavily on the company's massive multi-billion-dollar cash pile.

2. THE BIZARRE MARKET REACTION: PROFIT DOWN, PRICE UP
Here is where the script went completely off the rails. The announcement hit the wire with headline declines, and right on cue, the stock decided to... stage a vigorous rally.

• The "Not As Bad As Feared" Relief: The market had already braced for complete disaster. When the results turned out merely "underwhelming" rather than "apocalyptic," short-sellers scrambled for the exits and buyers rushed in.

• Priced-In Pessimism: The stock had been beaten down for months leading up to the release. The actual bad news was already stale bread to institutional algorithms.

• Cash Fortress Appeal: Investors took one look at the pristine balance sheet and virtually zero net debt, deciding the dividend yield remained far too juicy to ignore.

3. WHY MR. MARKET DOES NOT CARE ABOUT YOUR LOGIC

• Sentiment Trumps Spreadsheets: Short-term stock prices do not reflect past accounting profits; they reflect the gap between whisper expectations and reality.

• "Sell the Rumour, Buy the Fact": When everyone positions for a flop, even mediocre news triggers an aggressive short squeeze.

• Accounting Noise vs. Real Cash: Depreciation charges look ugly on the income statement, but they do not drain physical cash from the bank vault today.

4. PARTING THOUGHTS
Well, with the sudden rally, looks like I have to abandon my plan to accumulate further shares of Genting Singapore with my SRS funds for now and turn to other opportunities. But guess I am lucky that I have already built up a significant stake in Genting Singapore just before the half year results announcement. Ok folks, that's all from me today. Have a great week ahead!

(P.S: Please also see my related post on Genting Singapore here: "Genting Singapore (SGX: G13): 6.3% Annual Dividend Yield—Safe Dividend or Value Trap?")