Page 62 – Kanebridge News

May 17, 2023

WHAT EVERYONE—EXCEPT THE US—HAS LEARNED ABOUT IMMIGRATION

Migration to affluent countries is at record highs, and some nations short of workers are overcoming political opposition to open their borders even wider, hoping to fill jobs and ease inflation.

Government actions to attract foreign nationals for skilled and unskilled jobs have spread from Germany to Japan and include countries with longtime immigration restrictions and some with a populist antipathy to streams of foreign workers.

The U.S. remains an outlier. Hundreds of thousands of migrant workers have arrived through back channels, but the country isn’t openly welcoming more legal workers, despite the tight labor market. That hesitancy carries economic costs, including persistent worker shortages and wage inflation, according to economists and some U.S. officials.

Unemployment is at a record low 4.8% across the 38 largely affluent countries that make up the Organization for Economic Cooperation and Development. These and other nations report a long list of open positions from truck drivers to baggage handlers to miners.

Beyond being needed to fill pandemic-driven labor shortages, migrant workers are in demand to fill the gap left by retiring baby boomers and declining populations, economists and Western officials say. “The labor forces of richer countries are hollowing out,” said Michael A. Clemens, an economics professor at George Mason University.

Governments across affluent countries are balancing the economic need for more workers with the political reality that very few electorates are enthusiastic about high levels of immigration.

In Europe and North America, the working-age population is expected to decline from 730 million to 680 million over the next two decades, according to United Nations estimates. Such places as South Korea and Taiwan stand to lose more than half their workforce over the coming decades. The working-age population in sub-Saharan Africa, meanwhile, will increase by 700 million by 2050, according to U.N. projections; in Latin America and the Caribbean, the U.N. estimated an increase of 40 million by midcentury.

For many wealthier countries, labor surpluses abroad are hard to resist. The global labor imbalance, in effect, is driving foreign workers into the open arms of nations that need them.

Around five million more people moved to affluent countries last year than left them, up 80% from pre pandemic levels, according to a Wall Street Journal data analysis. The Journal examined 10 countries that received most of the migration, including the U.S., Germany, the U.K., Canada, Australia and Spain. Migration experts say it is the highest number ever reported. That total includes about two million refugees from Ukraine. Even excluding that surge, net migration was significantly higher than 2019 levels, according to the data.

Germany is rewriting immigration laws to bring in more college graduates as well as blue-collar workers under a new points-based system. Points will be awarded based on age—younger people receive more—educational qualifications, work experience and German-language competency. Canada announced plans late last year to take in nearly 1.5 million more migrants by 2025. Western Australia recently sent a delegation to the U.K. and Ireland to recruit tens of thousands of workers, including police, mechanics and plumbers.

South Korea plans to admit 110,000 low-skill foreign workers this year to work in industries such as farming and manufacturing, up nearly 60% from last year’s quota. Japan, which is opening new visa paths for high-skilled foreign workers, announced in April plans to offer blue-collar workers—including those at factories and farms—a chance to extend their stay and even bring their families. Both countries have been longtime skeptics of immigration.

Spain amended its laws last year to allow more foreign workers from outside the European Union to fill blue-collar jobs left open by a shrinking working-age population. José Luis Escrivá Belmonte, Spain’s minister of inclusion, social security and migration, estimated that his country will need to add 300,000 foreign workers a year to keep the economy running and support the national pension system.

Spain’s unemployment rate is 13% and has been around that level or higher for 15 years. Mr. Escrivá said unemployed Spaniards tended to be age 50 or older and not necessarily suited to fill open jobs needed in sectors such as agriculture, construction or film production.

José Antonio Moreno Díaz, an official at Spain’s Trade Union Confederation of Workers’ Commissions, which represents over a million workers, including migrants, said training opportunities for higher-paying jobs should be offered to citizens. “We are not against bringing in real needed foreign workers,” he said. “But let’s pay attention to unemployed people in the Spanish labor market.”

Opponents in various countries warn of citizens losing jobs to outsiders willing to work for less money. Some say the cost of providing newcomers with healthcare, education and other public services outweighs the economic benefits, especially for low-skill workers who pay little in taxes.

Others argue that such immigration is a quick fix that slows economies in the long term.

“Labor shortages are very healthy,” said Mikal Skuterud, an economics professor at University of Waterloo in Ontario, Canada. “They force employers to use existing workers more efficiently and invest in technology, that’s all good stuff.”

Finland and Greece are building hundreds of miles of new land barriers to prevent illegal migrant crossings. In Italy and Sweden, voters recently elected governments with a more restrictive approach to immigration, and both are planning reforms to slow both legal and illegal migrant arrivals.

More jobs, higher pay

The U.S. hasn’t made any significant immigration reforms in 33 years, and the last serious attempt in Congress dates back a decade or more. Few issues are so politically divisive in Washington, making any chance of a policy overhaul seem unlikely, according to immigration experts.

Despite restrictive immigration policies, migrants seeking work in the U.S. are finding jobs more quickly and at higher pay than at any time in recent memory. Tens of thousands of people crossed into the U.S. from Mexico illegally and were arrested over the past 10 days, while some 20,000 were detected by various forms of surveillance but not caught, the U.S. Border Patrol chief wrote on Twitter.

In the U.S., the limit on H-1B visas available for highly skilled workers has changed little since 1990. Presidential administrations over the past 15 years have clamped down on illegal border crossings without creating new legal immigration pathways, prompting more urgent discussions about immigration policy and the labor shortage, said Giovanni Peri, chairman of the economics department at the University of California, Davis where he directs the Global Migration Center, whose recent research favours more immigration.

U.S. Border Patrol agents made a record 2.2 million arrests along the Mexican border in the 2022 fiscal year, up from 1.65 million arrests in 2021. The migrant crossings were driven, in part, “because the U.S. economy is screaming out for their labor,” said Mr. Clemens, the economist.

New channels have recently opened. More than 300,000 Ukrainian refugees entered the U.S. since Russia invaded Ukraine last year, many through a Biden administration program called Uniting for Ukraine. That number is more than the total number of refugees admitted into the U.S. through legal channels over the previous seven years. In North Dakota, energy companies are tapping Ukrainians to fill jobs in the Bakken oil fields.

Around 450,000 migrant refugee workers—largely from Afghanistan, Ukraine, and Latin America—entered the U.S. legally in 2021 and 2022 and are working under temporary government protections in industries with labor shortages, according to an April report by FWD.us, a pro-immigration think tank. Those workers are estimated to have filled about a quarter of total job openings this year in such industries as construction, food services and manufacturing, the report said.

The labor shortage is pushing inflation in affluent countries where employers, competing for workers, are raising wages to hire and keep them. “I do think more migrant workers would reduce the inflation rate,” said Spencer Cox, the Republican governor of Utah, which has a 2.4% unemployment rate, slimmer than even the U.S. rate of 3.4%.

Gov. Cox and Republican Gov. Eric Holcomb of Indiana, which is also short of workers, want to rally other governors in a long-shot proposal for Congress to give states a measure of authority over legal immigration.

The U.S. and other countries are divided about how to limit illegal immigration while keeping a pathway for a flow of potential employees for various industries. A plurality of Americans think the U.S. should admit fewer migrants, according to recent Gallup polls.

To gather bipartisan support for increased legal immigration, especially for skilled workers, Utah Gov. Cox said the government needs to demonstrate better control over the U.S.-Mexico border. “Scenes of tens of thousands of migrants streaming across the border in a way that could threaten national security,” he said, “make it harder to have that higher-level conversation.”

Learning the ropes

Mathias Senn, a butcher in Germany’s wealthy Black Forest region, posted job ads in newspapers and online, seeking to replace four of 10 employees who were preparing to retire. “There were no interested people,” he said. “Nothing at all.”

Last year, Mr. Senn hired an apprentice from India, taking advantage of a new law that allowed businesses to hire unskilled people from outside the EU. Local business associations are helping hundreds more workers arrive from India. India’s unemployment rate is around 8%, compared with about 3% in Germany.

Mr. Senn’s 22-year-old apprentice, Rajakumar Bheemappa Lamani, makes about 940 euros a month, around $1,020, while learning the ropes. Mr. Lamani said it was difficult to save money because of the high cost of living, but he hoped to stay.

Mathias Senn, right, a butcher in southwest Germany, and his apprentice Rajakumar Bheemappa Lamani from India. PHOTO: DOMINIC NAHR FOR THE WALL STREET JOURNAL

Germany needs to add around half a million immigrants a year in the next decades as the baby boomer era draws to a close, said Herbert Brücker, head of migration research at the Institute for Employment Research, a federal agency. “We have in Germany about two million vacancies, an absolute peak historically,” he said.

Young people in Germany aren’t interested in manual work, said Joachim Lederer, a butcher in Weil am Rhein, a town of 30,000 by Germany’s borders with France and Switzerland. His son, who studied and worked at the University of California, Berkeley, and Cornell, is a professor of mathematical statistics.

Mr. Lederer recently hired an apprentice from India who had studied computer science, and he has anointed a young Italian immigrant to take over the butcher shop when the time comes.

The U.K. added a record half-million new migrants in the year ended June 2022, even after exiting the EU, which made it more difficult for EU citizens to obtain visas.

Alan Manning, former chair of the U.K. Migration Advisory Committee, which consults government officials on immigration policy, said people accepted the idea of allowing foreign workers if their skills are needed. But some “get anxious about immigration when they perceive it to be out of control,” he said.

Amjed Nizam, a Sri Lankan design engineer trained in Hong Kong, looked for an exit overseas when Sri Lanka’s economy imploded last year. The 29-year-old discovered a new U.K. program that grants two-year work visas to recent graduates of top universities, even without a job offer.

U.K. authorities approved Mr. Nizam’s online application within three weeks, he said. He arrived late last year, found a job with a broadcasting company and now lives in London with his wife and daughter.

Paul Papalia, a government minister in Western Australia, said the region desperately needs workers in both public and private sectors to serve the mining industry, which is booming from global demand for battery-powered vehicles that rely on locally mined lithium, cobalt and nickel.

Mr. Papalia led a delegation in March to pubs and other spots in the U.K. to try to lure as many as 30,000 British workers with the prospect of better salaries and sunny weather. Nearly 70,000 job seekers expressed interest so far, including 1,100 applications to join the police force, he said.

Only about a fifth of Australians supported more immigration, according to a poll last year by the Lowy Institute, a nonpartisan think tank in Sydney. Mr. Papalia said voters in his state nonetheless support his recruitment efforts. “They ask, ‘Where are the people who are going to help us build our house?’ ”

May 17, 2023May 17, 2023

WHY REMOTE WORK COULD LEAD TO LESS INNOVATION

Do chance encounters among employees of different Silicon Valley companies in coffee shops, restaurants and other public places lead to innovation? The answer is yes, say researchers who examined such “knowledge spillovers” in a study that may have implications for today’s work-from-home culture.

The researchers—Keith Chen of the University of California, Los Angeles, and David Atkin and Anton Popov of the Massachusetts Institute of Technology—tracked the locations of 425,000 phones using commercially available cellphone-location data. Though the data is anonymous and linked only to the unique ID number of each phone, the researchers surmised where the phone owners worked by looking at where the phones spent large parts of the workday, using a map of buildings occupied by Silicon Valley companies that have filed patents.

Examining instances where phone owners went outside the office and ended up near someone from another Silicon Valley company, they found 218 million episodes in which two workers from different companies were in the same place between September 2016 and November 2017.

For their study, they considered only situations in which both people were near each other for at least a half-hour, and used a probability technique to eliminate meetings that might have been arranged in advance. They also assumed that many of these people bumped into someone they already knew, such as a former colleague.

Sharing knowledge

Such chance meetings “may spark a conversation that leads to a transfer of knowledge or a collaboration,” the researchers wrote.

Next, the research team pulled up patent applications filed by the companies of the employees. Such applications list relevant patents from other companies in so-called patent citations. Patent citations are “one measure of which firms are influencing each other and how firms are sharing ideas,” says Prof. Chen, who studies behavioral economics and strategy at UCLA’s Anderson School of Management.

The researchers then worked backward in time. They looked for places where employees of a patent-filing company may have crossed paths with workers from companies cited in the patent application.

“We rewind the clock to a year before when they would have been developing this technology,” says Prof. Chen. “What school were they dropping their kids off at, what mall were they shopping at, what bar do they frequent. And you infer who was at that bar when they were there,” based on the phone-location data.

The goal, Prof. Chen says, is “to connect workers of the firm that is going to file the patent, at the establishment where we infer that patent was innovated, with what other workers they were interacting with.”

Next, the researchers calculated the overall number of such citations that appear to have been linked to unplanned encounters. The upshot: The researchers say that without these encounters, there would have been about 8% fewer cross-firm patent citations in the period covered by the phone-location data.

“There is a tremendous correlation between my workers’ meeting a lot with your workers, and my workers’ citing your workers’ patent,” says Prof. Chen.

The innovation boost from the encounters, by the team’s calculations, is about twice as large as a similar effect found by other research that looked for knowledge transfer based on whether two companies’ offices are near each other, Prof. Chen says.

Their study comes with some caveats. The researchers don’t know whether these employees actually spoke when they were in the same location, or, if they spoke, what they talked about. And they don’t know whether the workers’ jobs would have facilitated a tech discussion—they might have involved a Google HR staffer and an Apple maintenance person.

Still, the report shines a light on what some experts have long suspected: that random conversations involving people in similar industries can increase innovation.

Enrico Moretti, an economics professor at the University of California, Berkeley, says the study “significantly advances our understanding of knowledge spillovers and how they shape the geography of innovation.” Prof. Moretti, who says he has been working on the topic for 25 years, says, “I find this paper to be one of the most direct and convincing pieces of evidence on this question. It provides important insights into why Silicon Valley-style clusters of innovation exist.”

Remote work’s impact

Though the study involved cellphone data from before Covid, the researchers say it has implications for an era when many people work all or part of the time from home.

The researchers looked at people who occasionally worked from home in the study period, based on where their phones were located during daytime hours, and then at how that affected their probability of attending planned or serendipitous meetings with someone from another company who didn’t work from home, Prof. Chen says.

Looking at two hypothetical companies, the researchers extrapolated that if one-half of employees at each business work from home, their meetings of all types—serendipitous and planned—would fall 35% and patent citations between the companies would decline almost 12%.

“We think this means information exchange between firms is decreasing,” Prof. Chen says. “It is worrying. These businesses co-locate for a reason. If they can’t learn from each other, we think that is a big deal.”

“Presumably,” he adds, “an even bigger effect is the harm that it does to serendipity and flow of information and innovation within the firm.”

May 9, 2023May 9, 2023

BUFFETT AND MUNGER ON SUCCESS, TOXICITY AND ELON MUSK

The question was a philosophical one: How should you avoid major mistakes in business and life?

Warren Buffett, the 92-year-old chairman and chief executive of Berkshire Hathaway, paused briefly.

“You should write your obituary and then try to figure out how to live up to it,” Mr. Buffett said. “It’s not that complicated.”

At Berkshire’s annual shareholder meeting on Saturday, an event that draws thousands to Omaha, Neb., each spring, Mr. Buffett and his longtime business partner, Charlie Munger, spent hours weighing in on topics as varied as the recent banking turmoil to artificial intelligence and the future of the U.S. As is typical at such gatherings, the executives also doled out plenty of advice on management practices, career choices and how to enjoy a good life.

In prior years, Mr. Munger has heaped scorn on consultants, compensation specialists and what he described as make-work activities inside U.S. companies. This weekend, he directed his ire at wealth managers.

“Having a huge proportion of the young and brilliant people all going into wealth management is a crazy development in terms of its natural consequences for American civilisation,” Mr. Munger said. “We don’t need as many wealth managers as we have.”

He added: “I don’t think a bunch of bankers, all of whom are trying to get rich, leads to good things.”

Mr. Buffett, for his part, said he wanted to see greater accountability inside banks, saying that the recent crisis in the industry illustrated why executives and board members should face consequences if a business encounters problems.

“If the CEO gets the bank in trouble, both the CEO and the directors should suffer,” Mr. Buffett said. “You’ve got to have the penalties hit the people that cause the problems, and if they took risks that they shouldn’t have, it needs to fall on them if you’re going to change how people are going to behave in the future.”

Over hours of questions from investors and others, the two billionaires often peppered their answers with recommendations on how to navigate business. Mr. Buffett advised that people pay attention to how others might try to manipulate them.

He also encouraged those in attendance to resist the temptation to criticise or vilify others.

“I’ve never known anybody that was basically kind that died without friends,” Mr. Buffett said. “And I’ve known plenty of people with money that have died without friends.”

Mr. Munger said that success comes from steering clear of toxic people.

“The great lesson of life is get them the hell out of your life—and do it fast,” Mr. Munger said.

When hiring some of his top leaders over the years, Mr. Buffett said he has tried to suss out someone’s talents and not focus on whether they attended a prestigious institution.

“I have never looked at where anybody went to school in terms of hiring,” Mr. Buffett said. “If somebody mails me a résumé or something, I don’t care where they went to school.”

One of Mr. Buffett’s top lieutenants, Ajit Jain, studied at Harvard Business School, “but he isn’t Ajit because he went to those schools,” Mr. Buffett said.

Mr. Buffett graduated from the University of Nebraska-Lincoln and later studied under the legendary value investor Benjamin Graham at Columbia University. Mr. Munger, who is 99 years old, studied mathematics at the University of Michigan and meteorology at the California Institute of Technology, and went on to earn a law degree from Harvard University.

On artificial intelligence, Mr. Buffett said he had been impressed at generative AI’s abilities to summarise legal opinions and potentially take on other tasks, though he said he also worried about its potential consequences. “It can do all kinds of things, and when something can do all kinds of things, I get a little bit worried because I know we won’t be able to uninvent it,” Mr. Buffett said.

Mr. Munger said he was skeptical of some of the hype around artificial intelligence. “I think old-fashioned intelligence works pretty well,” he said.

Near the end of the meeting, an audience member asked the two billionaires to weigh in on Elon Musk, the SpaceX and Tesla CEO who took control of the social-media platform Twitter last year.

Mr. Buffett called Mr. Musk a “brilliant, brilliant guy,” who had a much different approach in dreaming about the future than the Berkshire executives. Mr. Buffett has often said he takes a hands-off approach to managing Berkshire’s subsidiaries, which range from the insurer Geico to the restaurant chain Dairy Queen. Mr. Musk is known for weighing in on the details at his companies.

“He would not have achieved what he has in life if he hadn’t tried for unreasonably extreme objectives,” Mr. Munger said of Mr. Musk. “He likes taking on the impossible job and doing it. We’re different: Warren and I are looking for the easy job.”

Mr. Buffett said he didn’t want to compete against Mr. Musk, to which Mr. Munger added: “We don’t want that much failure.”

Mr. Musk tweeted Saturday that he appreciated the “kind words from Warren & Charlie.”

May 9, 2023

UNDERWHELMING CHINESE STOCK MARKETS SHOW CONCERN OVER RECOVERY

One mystery in global markets this year is that while China’s economy appears to be rebounding strongly, its stock market hasn’t been doing as well.

The MSCI China index has risen only 1.8% so far this year, underperforming many of the major markets. The S&P 500 index, for example, has gained 7.7%. Stocks listed in Shanghai and Shenzhen have done a bit better—the CSI 300 index has gone up 4.9% in 2023. That seems to be in contrast to the rebounding economy, after China scrapped its strict “zero-Covid” pandemic restrictions in December and scaled back its regulatory crackdown on its technology companies.

China’s gross domestic product grew 4.5% from a year earlier in the first quarter and, more significantly, consumption has also come back strongly: retail sales jumped more than 10% in March from a year earlier. Crowds were everywhere in Chinese scenic spots in the recent five-day “Golden Week” holiday. Total domestic trips during the holiday rose 19% from the same period in 2019, according to official figures. Tourism revenue also recovered to pre pandemic levels.

Of course, the rally in Chinese stocks late last year already priced in a big part of the recovery. The MSCI China index surged 34% in the last two months in 2022, after rumours of reopening started to circulate.

Yet earnings growth so far has been disappointing. For nearly 80% of Chinese listed companies that have reported their first-quarter results, profits only grew an average 1% year on year, with around 69% of them having missed consensus earnings estimates, according to Goldman Sachs. About 77% of A-share shares—companies listed in Shanghai and Shenzhen—revised down their earnings guidance for 2023, according to Bank of America.

Earnings growth will likely improve ahead, especially against a lower base last year, when lockdowns across the country battered the economy. The struggling housing sector also seems to have stabilised. But a big question that remains is how long the consumption bounce could last. The export sector may suffer with a potential recession looming in the U.S. and Europe. China’s job market, especially for younger workers, is still quite weak. That partly explains why investors have jumped back into shares of state-owned enterprises—a more stable choice in an uncertain time.

Chinese stocks have rebounded substantially from their lows last year, but are still way off their peaks in early 2021, when China appeared to have avoided the worst of the pandemic. A more sustained market recovery would require a more broad-based revival of earnings growth.

March 29, 2023

A MANSION IN HONG KONG’S EXCLUSIVE PEAK NEIGHBOURHOOD POISED TO SET A PRICE RECORD

A new mansion in an exclusive Hong Kong neighbourhood known as The Peak is said to have an offer for HK$1.2 billion (US$153 million) from a mainland Chinese buyer. If the deal goes through, the sale will translate to HK$255,000 per square foot, a record for a residential property in Asia.

The mansion, located on Barker Road, the same street as Alibaba founder Jack Ma’s HK$1.5 billion mansion, has 4,700 square feet of living space across four levels and features sweeping views of Victoria Harbour and city skylines, according to Chinese-language daily Hong Kong Economic Times (HKET).

The mansion was built on the site of a Grade II-listed, Spanish-style villa, known as Villa Blanca. The villa was owned by Hong Kong businessman Haking Wong, most famous for his commercial optical products, for nearly two decades from 1978 to 1998.

CSI Properties acquired the villa in 2011 for HK$200 million, and paid another HK$103.2 million four years later to expand the site, according to the public filings.

The developer began marketing the mansion earlier this year. A buyer from mainland China has offered HK$1.2 billion and the deal is expected to close soon, HKET reported, citing market sources.

CSI Properties did not immediately respond to a request for comment, and Mansion Global could not independently confirm details about the potential buyer or sale.

The current unit price record for a residential property in Asia was set in 2021, when an apartment at a development called Mount Nicholson sold for HK$140,800 per square foot, or a total of HK$639.8 million.

Hong Kong, where prime properties on average cost more than HK$34,700 per square foot, was ranked as the world’s second most expensive market following Monaco, according to a recent report by Knight Frank.

Bloomberg was the first global media to report the sale.

This article originally appeared in Mansion Global.

February 2, 2023February 23, 2024

Best Schools In Singapore For Locals and Expats (2024)

Parenthood often means thinking three steps ahead. Education is one of the major milestones in a child’s development and getting them into a good educational institution remains one of the foremost priorities for parents.

Consistently positioned within the top five in the PISA Education rankings worldwide, Singapore is synonymous with being the premier education hub within the Southeast Asian region. The reputation of Singapore’s educational offerings brings forth large swathes of children of the regional elite prepared to spend to enrol them into the top schools in Singapore. This in part has also led to Singapore instituting distance-based admissions for junior schools because of the competitiveness as well as a desire to reduce travel times to school for students.

Distance-based criteria is only relevant for admission into local primary schools, and future students enrolling must be residing within a 1km radius of the school that they are intending to study at. To this end, the core of the elite junior schools still are concentrated in the areas of Districts 9,10 and 11, along the Bukit Timah Stretch.

Here’s our pick of the top 10 list of Best Schools across a range of qualities that they boast.

Anglo-Chinese School (ACS) (Primary/Junior)

This Anglo-Chinese School is famous for being name-dropped in Kevin Kwan’s movie-adapted book, Crazy Rich Asians. Its aim is to produce “gentlemen, scholars, leaders, officers and global citizens”, and the all-boys school has done so by counting at least three ministers in the current Singaporean Government among their alumni, as well as prominent business leaders such as Mr Phillip Ng of Singapore’s largest real estate developer Far East Organisation and members of the Shaw family. As one of the oldest schools in Singapore, its alumni extend deep into the generational networks of the old money in Singapore. For those seeking valuable connections for their child as they grow, this is one school to keep on your list.

Location: 50 Barker Road(Primary), 16 Windest Road (Junior), District 11 (Primary), District 10 (Junior)

Singapore Chinese Girls School (SCGS)

Situated right beside Anglo Chinese School Primary, the Singapore Chinese Girls’ School caters to the well-heeled crowd in the Newton Catchment Area. The provenance of its name speaks of its age and establishment as the first Chinese girls’ school in Singapore. SCGS Primary is known for producing alumni such as Mdm Halimah Yacob, the current and eighth president of Singapore. It is a non-denominational school. However, schools do not prejudice admissions based on faith and religion and participation in the school’s faith-based activities are by choice. SCGS has a secondary school section that gives it affiliation points off the Primary School Leaving Examination (PSLE), as well as further affiliation to a pre-university institution, Eunoia Junior College.

Location: 190 Dunearn Road, District 11

Methodist Girls School (MGS Primary)

Even though MGS Primary is not located beside ACS Primary like SCGS, as a Methodist school, it is the sister school to the ACS. It is located slightly further down the road, in District 21, and like ACS, it boasts similar networking qualities that your child may stand to gain from. While it is not a specialised school for academics nor sports, MGS performs well in all domains and students develop and excel holistically, with alumni such as the late Kwa Geok Choo, the wife of the late founding Prime Minister Mr Lee Kuan Yew to Southeast Asian Games swimming gold medallists Joscelin Yeo and Nicolette Teo.

Location: 11 Blackmore Drive, District 21

Nanyang Primary School

Nanyang Primary School is nestled within a large cluster of desirable bungalow estates, the ‘creme de la creme’ of private real estate purchases you can make in Singapore. Many notable local celebrities like singer Stefanie Sun and prominent politicians, like Senior Minister Tharman Shamnugaratnam have sent their children to Nanyang. In fact, the current Prime Minister, Mr Lee Hsien Loong, studied at Nanyang Primary. Its illustrious alumni coupled with its reputation as the leading institution for bilingual education makes it a prime choice to plan for your child’s future enrolment. Bungalows in the area cost upwards of $20 million. However, this does not mean that proximity-based admission is exclusive to those that buy them, as there are plenty of decently priced apartments in the vicinity. For example, D’Leedon is an architecturally renowned apartment complex within a 0.71km radius of Nanyang Primary. One of the furthest apartments within the 1km radius limit is Leedon Residence, a luxury boutique apartment built in 2015, while one of the cheapest options available within the area is Spanish Village, though the cheapest apartment available is still a sizeable S$2.63 million.

Location: 52 King’s Road, District 10

Raffles Girls Primary School

Named after the colonial founding father of Singapore, Sir Stamford Raffles, the institution’s senior divisions are famed for producing scholars including Mr Lee Kuan Yew. Raffles Girls Primary School is a junior institution popular among parents not just for its coveted name, but its high academic standards, having produced consistent highest scorers in the PSLE. While the ministry has shied away from proactively ranking schools based on academic performance and has instead pivoted to labelling all schools as “good schools” in line with the government’s meritocratic ideals, RGPS has an extensive teaching resource accumulated over the years and teaching staff that gives students a solid grounding in academic capability.

Location: 21 Hillcrest Road, District 11

Tao Nan School

Moving away from the Bukit Timah stretch of primary schools, Tao Nan School is one of the few schools that admitted Gifted Education Programme (GEP) students into their existing cohort. The Gifted Education Programme caters to the top 1% of the cohort and is aimed at further advancing students able to manage the academic rigour with more thought-based research projects. Selection for GEP generally happens in the middle of primary education at Primary 3, however, admission into the school at P1 is not a guarantee of admission into the program. Despite this, given that the teachers in the school are equipped with the resources to teach GEP students, this may translate to a better quality of education in one of the better educational institutions located in the East of Singapore.

Location: 49 Marine Crescent, District 15

Pei Hwa Presbyterian School

Pei Hwa Primary is a Presbyterian denominational school that has been accorded the Special Assistance Plan (SAP) since 1992. An SAP school “capitalises on its distinctiveness in its promotion and inculcation of Chinese values culture and tradition”. Pei Hwa has an Arts and Bi-cultural Enrichment program that deepens students’ appreciation of cultural goals. It is also a school with a long history, established in 1889, and is one of the schools along the Bukit Timah stretch that deviates from traditional sport-based Co-Curricular Activities such as Rugby and Swimming, instead having Chinese Dance and Chinese Drum as one of their anchor activities to reinforce a sense of cultural belonging and understanding at a young age. It’s a good choice for expat parents with Chinese roots looking to improve their child’s ability in bilingualism and enhance cultural appreciation.

Location: 7 Pei Wah Ave, District 21

Red Swastika School

Like Pei Hwa Presbyterian, Red Swastika School is also a SAP school, located in the East of Singapore rather than in the West/Central region. It also has consistent batches of students achieving an almost 100% pass rate in the PSLE, attesting to its ability to develop and nurture academic qualities in its students and has also been ranked by KiasuParents, a forum-blog on Singaporean education, as having one of the hardest Preliminary examination papers for the PSLE.

Location: 350 Bedok North Ave 3, District 16

Catholic High School (Primary Section)

Catholic High School boasts having the current Prime Minister of Singapore as one of its alumni (though he only enrolled at the secondary level), and the institution’s qualities can be best explained by PM Lee’s speech at the 80th Anniversary of the School just two months ago.

“They (the elder Mr Lee and Mdm Kwa) explained to me they chose it because it was a Chinese-medium school but it has high standards of both English and Chinese — bilingual. Also, it has strict discipline. Furthermore, it was a Catholic mission school.”

Location: 9 Bishan St 22, District 20

Rosyth School

Established in 1956, Rosyth School, like Tao Nan was one of the first few GEP schools that the government established for higher academically performing students. Given that there are only nine GEP Schools in Singapore, students that qualify for admission into the program are given the choice of enrolling in each of the nine schools at Primary 4. However, most of the schools are usually located within Districts 10,11, 21. Rosyth, therefore, caters to eligible GEP students in the north and central of Singapore, while Tao Nan caters for the East. Rosyth’s plethora of academic resources could benefit students by leapfrogging their cohort in their academic pursuits.

Location: 21 Serangoon North Ave 4, District 19

Beyond that, here are also some other considerations that you may wish to consider when purchasing a property near these schools. Kanebridge News spoke with realtor Clement Lim to understand more about additional factors that may affect your child’s choice of admission.

Kanebridge News: Are PSF (per-square-foot) prices significantly higher in areas with good schools?

Clement Lim: Yes. In my view, the three most important features of any private property is its location. This is especially so in land-scarce Singapore. On this small island, a good residential location almost invariably means being near reputable schools. This effect is compounded because good schools in Singapore are usually clustered together.

The reason for high per-square-foot prices near top schools in Singapore is a simple reflection of behavioural psychology and a hearty dose of Singaporean Kiasu-ism (Read: elitism or; meritocracy). Affluent parents fight tooth and nail to send their children to some of the best enrichment and to the best schools and will pay any premium for the convenience of their children. Like a competitive bidding system, prices of residential properties near good schools are therefore driven up by Asian parents’ weighty expectations of their children.

Where successful parents and bright students go, it also enriches the locality of any neighbourhood. It’s simple economics: purchasing power centres around a particular area, e.g Cluny Court near the aforementioned elite-school cluster, and top merchants follow. As a realtor, the most common question I get from buyers is, ‘what good schools are near this property?’.

KN: When is the right time to invest/purchase a property for the purposes of relocating and garnering admission to a primary school?

CL: Generally, it is recommended to purchase a property near your intended school before your child registers for the school.

However, a concession allows you to register your child for primary school using the address of a yet-to-be-completed property you have purchased. The vacant possession date (which means the date on which you can move in) must be within 2 years of your child’s entry into Primary 1, which usually is before your child turns 7 years old. This is a tad more complicated as it will require certain documents from you such as a Letter of Undertaking warranting that you will move into a said new property, as well as a copy of the original Sales and Purchase Agreement. It is more troublesome, but doable.

Credit: You may get in touch with Clement, our realtor lead for this article, at +65 9159 2011.

REA No: R065119B

November 19, 2022December 8, 2022

Australian design retailer Cult opens in Singapore

Lovers of interior design now have a new destination with Australian designer furniture retailer Cult opening its first store in Singapore today.

The store at 48 Club Street, Singapore represents Cult’s first foray into a ‘bricks and mortar’ retail environment in Asia, following on from six years of B2B activity in Asia.

Founded in Sydney by Richard Munao in 1997 as Corporate Culture, the Singapore Cult store located in the heart of the busy Chinatown district will stock familiar Australian brands such as Nau, Tait and Coco Flip, as well as Danish design houses including HAY, Gubi, Vipp and &Tradition.

Cult has been active in Singapore since 2017, with the team completing projects across Asia in China, Hong Kong, Japan, Korea and Thailand, among others.

Much like the evolution from a trade-only business in Australia to a popular retail environment with stores in Sydney, Melbourne, Brisbane, Perth and Adelaide, Mr Munao said the opening of the store in Chinatown is in response to repeated demand from clients to be able to experience and access the products for themselves.

“Our first six years in Singapore were dedicated to relationship building with key clients and increasing the Cult brand awareness within the regional design community,” he said.

“During the pandemic the rising demand for well-designed furniture for the home also led to a sharp increase in retail enquiries, sales and repeated requests from retail clients for us to have a physical store to visit.”

Business development manager for Cult Singapore, Ravi Shankar, said now was the right time to launch the business to the wider public with an eye for design.

“Affluent Singaporeans are willing to spend more to furnish their homes and businesses now than 10 years ago, when only the wealthiest individuals and corporations would consider ‘designer’ furniture,” he said. “Singapore also remains a gateway to South East Asia, with some of the best design work for the region being undertaken by firms in Singapore.

“This is likely to continue with the steady influx of talent and organisations from areas such as Hong Kong and Shanghai.”

November 18, 2022

‘SAD BEIGE’ HAS TAKEN OVER BABY GEAR, CLOTHING, DECOR

Krissy Kyne, a 27-year-old makeup artist in San Antonio, is giving birth to a baby boy this week. The room waiting for him at home is neither blue nor pink, but beige.

It has a light-coloured wood crib, a woven jute rug, a latte-hued changing pad and a cream ottoman, with oatmeal throw pillows and camel muslin blankets strewn about. Ms. Kyne said her mother-in-law told her her taste for neutrals looked “sterile,” but she has committed to the aesthetic, stocking drawers with beige onesies, beige sweatsuits and beige socks.

Ms. Kyne joins a wave of parents eschewing bright and stereotypically gendered colours for kid wares, and instead choosing earthy, neutral tones aligned with minimalism. It’s a look TikTok satirist Hayley DeRoche has termed “sad beige,” but some see it as a happy development: The ecru, blond and brown products fit right in with their stylishly muted décor in the rest of the house.

“Our whole house isn’t changing because we have kids,” said Jen Atkin, a celebrity hairstylist and entrepreneur in Los Angeles known for working with the Kardashians—although she conceded that the aesthetic can invite stains. Because she has two kids and three dogs, she bought easy-to-clean beige outdoor rugs and couches for her home.

Kylie Jenner showed off the beige furnishings in her son Wolf’s nursery in a video from March. Caitlin Covington, a content creator in North Carolina known online as “Christian Girl Autumn,” often dresses her daughter in brown and ecru ensembles for portraits.

“I’ve been influenced by influencers,” said Amina Kadyrova, a mother of three in New Jersey. “I’m a victim of the marketing system. But I genuinely like it.” Neutral colours are easier to mix and match on kids, she added.

Earlier this year, Baby Gap created a designated beige section inside some stores after researching market trends, according to the brand’s head designer, Carolyn Koziak. A new line from Walmart, Easy Peasy, includes a lot of beige, too. According to Etsy, searches for beige kids clothes jumped 67% in the past 12 months compared with the previous period.

“It seems to be marketing this fantasy that if I buy neutrals, my children will also be neutral, calm and quiet,” said Ms. DeRoche, the TikTok user, who lives in Petersburg, Va.

Most children’s companies still sell lots of toys and clothes in bright and inviting primary colours. “It’s important to expose kids to learning colours to help them with their visual perception,” said Ann-Louise Lockhart, a pediatric psychologist in San Antonio. “Having variety is important for brain development.”

Amanda Gummer, a neuropsychologist and children’s play expert in Britain, said there isn’t evidence that colourless toys stunt developmental milestones. Still, Dr. Gummer said, “the motivation of having an Instagrammable house and not letting kids explore and make a mess worries me. I don’t think many kids’ favourite colour is beige.”

Ms. Atkin said her children can get their colour fix elsewhere. “My son will go to indoor gymnasiums, play centres, museums, and he gets covered in slime and goo, and colour and glitter,” she said. “We do that outside of our house, and then we get to come home to a nice, calm, clean environment.”

Other parents noted the pacifying nature of neutrals. “Brown and beige make me feel calmer,” said Maddie Berna, a photographer and mother of two in central California. “I personally don’t like super bright colours, and they do wear that sometimes, but it’s annoying to see all the time.”

Ms. Berna’s mother, Ashley Durham, isn’t a fan.

“All of Ellie’s bows are the same kind of beige and I would like her to wear something that sticks out more,” she said, referring to her 15-month-old granddaughter. “I do try to buy them brighter color clothing. I just never see them in it.”

Naomi Coe, a California-based interior designer specialising in kid’s rooms, said she experienced an influx of beige requests during the pandemic, when many parents were spending more time at home.

“Neutral is going to give you calm, serene, homey, cozy,” she said. “I’ve noticed a shift where people are after that feeling more.”

Laura Roso Vidrequin, founder of secondhand kids-clothing marketplace Kids O’Clock in London, said beige products sell three times as fast as other colours on the site—perhaps because they are gender-neutral, she said, hence easy to pass down.

Elizabeth Robles Jimenez, a mother of four in Downey, Calif., said she bought plenty of pink and princessy products for her first three daughters before settling on beige décor and wooden toys for her 2-year-old, Ava.

“I think whites and creams give her an opportunity to discover her own self and not have the mentality that because she’s a girl, she needs all pink,” Ms. Robles Jimenez said.

Mushie, a startup that makes pacifiers, bibs and stacking cups in beige hues, has seen double-digit growth this year, according to its chief executive, Levi Feigenson. Moms cited the labels Oat, Soor Ploom, the Simple Folk, Tiny Cottons, Jamie Kay, Nora Lee, Rylee + Cru as others with an abundance of beige products.

“When I started my company [over 10] years ago, you couldn’t get a baby or child garment in a neutral colour unless you went to Europe,” said Marissa Buick, the Brooklyn founder of kidswear brand Soor Ploom. Her colour choices reflect ones “you won’t find in a shop, but are in nature,” she said.

November 18, 2022November 18, 2022

INFLATION, RECESSION FEARS HAVE SOME HOLIDAY SHOPPERS TRADING DOWN

Many shoppers are trading down to less expensive clothing and accessories—swapping Lululemon leggings for Uniqlo and expensive lingerie for Target bras and panties—as inflation eats into their disposable income and a rocky stock market erodes their wealth.

The downshift raises concerns about the coming holiday season, historically a time when many people splurge on designer handbags, fine jewellery and other extravagant purchases for themselves or loved ones. Investors will get updates on shopping attitudes this week when Ralph Lauren Corp., Michael Kors parent Capri Holdings Ltd. and Tapestry Inc., the owner of Coach, report their latest results.

“I’m skipping the splurge this year,” said Kate Cheng, who owns a jewellery store in San Francisco. Ms. Cheng said she normally treats herself to a designer handbag or another luxury item during the holidays, but is holding off this year over concerns about a looming recession.

She has noticed a shift in her customers’ buying habits in recent months to less-expensive silver jewellery from gold. That has prompted her to curtail her own spending. She switched to Uniqlo leggings instead of products from Lululemon, which cost about twice as much. She also canceled a trip to Maui, which would have cost about $4,000, and instead plans to take a road trip to New Mexico for about half the price.

Seventy-two percent of consumers plan to look for less expensive alternatives this holiday season as a result of inflation, according to a survey of 2,200 U.S. adults by Morning Consult, a research company.

With inflation at a four-decade high, consumers have been trading down to less-expensive groceries and other necessities for the better part of this year. Now, with the stock-market plunge of recent months further eroding the wealth of middle- and higher-income households, the penny-pinching is extending to more discretionary purchases.

Holiday retail sales in November and December, excluding spending on cars, gasoline and restaurants, is slated to increase between 6% and 8% from a year ago, after a 13.5% jump last year, according to the National Retail Federation, a trade group. The labor market is strong, and NRF expects some consumers will tap their savings and credit cards to deal with price increases.

U.S. consumers slowed their spending on luxury goods in recent months, according to credit-card data from Mastercard Inc., Citigroup Inc. and BofA Securities Inc. Spending over the summer and into September fell from the same period a year earlier, after posting double-digit percentage gains for most of the past two years.

Thomas Chauvet, who heads Citi’s Europe luxury goods equity research, said the slowdown was driven by a deceleration in transaction values, suggesting that even affluent consumers are trading down. According to BofA Securities, middle-income consumers, those making $50,000 to $125,000, slowed their spending the most.

Marc Metrick, chief executive of Saks, the online platform of the Saks Fifth Avenue brand, said customers with household incomes of about $100,000 are still spending but at a slower rate. These customers spent 20% more at Saks in recent months compared with the same period in 2021, but that is down from the 40% increase during the first six months of this year. As a result, Saks is selling fewer wallets, belts and other items bought by entry-level shoppers. “They are the canary in the coal mine for sentiment at that aspirational level,” Mr. Metrick said.

Jean-Marc Duplaix, finance chief for Gucci parent Kering SA, told investors in October that entry-level shoppers are buying less. “Among certain categories of products, which are maybe more appealing to a more aspirational clientele, there is some more pressure,” he said.

The slowdown has also hit American jeweller Tiffany, according to its parent, LVMH Moët Hennessy Louis Vuitton SA. “The business in the U.S. is a bit less strong than it used to be,” but it is still growing at a double-digit percentage, Jean-Jacques Guiony, LVMH’s finance chief, told analysts in early October.

Kering and LVMH executives said some U.S. shoppers shifted spending to Europe given the strength of the U.S. dollar. LVMH said its overall business with American shoppers in the third quarter was similar to the first and second quarters of this year.

Mr. Chauvet said the U.S. slowdown in Citi’s data, which started in May, wasn’t the result of purchases shifting overseas because it captures spending by U.S. consumers regardless of their location.

Luxury brands have been among the most aggressive in raising prices. HSBC estimates the sector raised prices around 5% since April, on top of an 8% increase starting in September 2021.

David Hampshere, who owns a real-estate investment company, switched from Ralph Lauren button-down shirts to Costco Wholesale Corp.’s Kirkland brand earlier this year. “With the stock market tanking and mortgage rates rising, I’ve definitely been cutting my expenses,” said Mr. Hampshere, who is 55 years old and lives in Freeport, Fla.

Mr. Hampshere recently returned a pair of $300 noise-canceling headphones and is instead using an old pair that he already owned. He plans to give friends and family $30 gift cards this holiday season rather than the $100 cards he doled out last year.

Stacie Krajchir, 54, a publicist who lives in Los Angeles, has stopped buying Natori underwear and now gets her bras and panties at Target. “I don’t need a $110 bra,” said Ms. Krajchir. “A $12 bra is good enough.”

She recently returned a $300 blouse she bought at Nordstrom. “I can buy a blouse, jeans and a dress at Zara, and it still won’t add up to $300,” Ms. Krajchir said. She plans to trade down in her gift-giving, too. She is getting her sister one gift this year, instead of the five gifts she normally gives her.

Brett Glickman started swapping lower-priced items for high-end ones in her San Francisco boutique after she noticed consumers becoming more frugal in recent months. She is pulling $198 French silk nightgowns off the shelves and replacing them with $24 sweaters and $65 baby-doll dresses. “I had to flip about 30% of my inventory to less- expensive prices,” the former Levi Strauss & Co. executive said.

JCPenney and Kohl’s Corp. said they are seeing consumers switch to private-label brands, which tend to be more affordable than national brands. “They were definitely trading down,” Jill Timm, Kohl’s finance chief said at a conference in September, referring to Kohl’s shoppers.

Vered DeLeeuw, of Washington, D.C., used to buy most of her clothes at Bloomingdale’s, but has switched to Nordstrom Rack for its bargain prices. “Bloomingdale’s was my mother ship, but it is too expensive now,” the 51-year-old food blogger said.

October 21, 2022October 21, 2022

Beyond the Central Region: Best Places For Expats to Live in Singapore

Welcome to Singapore. Known for its political stability, multicultural and multiethnic demographic, Singapore grew from a tiny fishing town into a bustling financial hub that is a magnet for talents regional and international. A growing pool of expatriates flocking into the lion city only means one thing: real estate is heating up and getting more competitive. For those that have just recently received job offers to Singapore, fret not. Here’s a rundown of the best areas for expats to reside in Singapore.

Kanebridge spoke with a rising real estate agent in Singapore, Denyse Chong for her insights on these trends in Singapore.

District 9: Orchard, Cairnhill, River Valley

Not only are the properties in these areas near to the Central Business District (Raffles Place, City Hall etc), it also boasts Singapore’s famous Orchard Road Shopping Belt! Cafes, restaurants, eateries, and groceries are easily accessible when you need them, and work is only a short 20-minute commute away! Within District 9, River Valley would be my personal favourite. The Riverfront Lifestyle promises a very chill, relaxing environment that you’ll be excited to come home to after a day of work.

District 10: Bukit Timah, Holland

Expats with children will most likely bookmark this district as this is the place you’d want to be when considering education options for your adolescents. It is surrounded by elite junior institutions such as Anglo Chinese School, Raffles Girls, Nanyang Primary, to name a few. It is also home to the Singapore Botanical Gardens where you can bond with your family over picnics. It is slightly farther out than Orchard, but even then, reaching the CBD will take you no longer than 30-mins.

District 3: Queenstown, Tiong Bahru

Tiong Bahru is known for its “quaint little vibes” with walk-up apartments, shophouses and local coffee shops. You’re also inbetween either CBD, or the Telok Blangah offices. For some weekend fun, you can easily pop by Sentosa’s beach clubs for drinks.

What is the community vibe like in those areas you have recommended?

Depending on where and which part of those areas, it can be pretty fast-paced, especially during rush hours. More so for the dwellings along the Orchard stretch. Foot and vehicular traffic can get quite heavy at the end of the day.

Rivey Valley is a nice quiet neighbourhood. You would meet fellow expats at the cafés in the area having brunch on weekends after walking their dogs, or fellow neighbours going for a run or cycle along the Singapore River.

Queenstown and Tiong Bahru presents more of a local vibe with more public housing located in the area, compared to D09 and D10. If you’re looking to immerse yourself into local culture, this area can be very interesting too!

What is the ideal age of a property to purchase in those regions?

Depending on your budget. If it’s within your financial means, purchasing a BUC (building under construction) property/brand-new property directly from the developer will be better as there are lower risks incurred from progressive payment. You are also at lower risks amidst a hike in interest rates as your loan would be disbursed progressively and not in entirety. Alternatively, you can also consider projects that have just obtained completion, so the wait is less, and you can move in immediately.

If you’re in need of larger living spaces, I would recommend going for slightly older developments (10 years of age and above) as you would get more liveable space for the same amount of beds and bath layout. However, this is location subjective. Finding an older development may also command a higher premium than a developer’s new release due to prevailing PSF prices.

Should I rent or buy outright? Are there any significant barriers to entry for purchasing a dwelling in Singapore?

If you’re here for a short but good time, renting would be a better way as you get to explore a variety of properties during your stay here.

Barriers of entry for purchasing a property include the upfront cash on hand required amounting to 25% of property price, as well as the additional buyer stamp duties foreigners would be required to pay, above the property price, at 30%, payable in cash. This represents a huge quantum.

Freehold or Leasehold?

It should be pre-requisited on what your goals are. If you’re purchasing and intending to pass the property down to your children, I would say freehold. But if you’re intending to invest, leasehold is equally competitive. The returns on investment may even stand to be better than a freehold property too.

Is it more popular to stay within the city? (Or is staying within the city fringe an upcoming trend, if so, why?)

While I believe it used to be popular to stay within the city due to close proximities to the office, nowadays, staying within the city fringe is getting increasingly popular as well. Furthermore, City Fringe property prices are much lower than that within the Core Central Region (CCR). Our Public Transportation is reliable and cost-efficient. This allows for more expats to rent at city fringe places for bigger spaces at the same budget. (An equivalent 2-bedroom rental in the city would translate to renting a 3-bedroom in the city fringe). It is a consideration for Expats to want to “detach” from work by returning to their home slightly further away from the hustle and bustle of the city.

You may wish to contact Denyse for further assistance if you’re looking to relocate to Singapore for work.

Denyse Chong

(65) 97116664

R063810F