Impacts of BREXIT To Singaporeans
BREXIT is quite certain and real as the news was broke out yesterday. The British government said it was a “once in a generation vote” and diminished the hopes of more than 4.1 million people who signed an electronic petition calling for a second referendum on the EU.
List of the impacts of BREXIT to Singaporeans
- The impact can be felt when the currency exchange between GBP and SGD plunged sharply right after the result of referendum was out on 24 Jun 2016. As of 8 July 2016, 1 GBP is further weakened to 1.7363 SGD from 1.97 before the poll day for the referendum. As BREXIT negotiation with EU will be further complicated by the next succession of the UK government, it is unlikely for GBP to rebound in the short term. Whether if it is for holidays or for forex investment, this could be a good opportunity for Singaporeans to take it on.
- Stock market volatility in the second half of 2016 can be expected. As such, Singaporeans who invested in related EU funds or trade in London market will be expecting a gloomy period ahead. On the contrary, gold investment as a safe haven will be good for the next 12 months. I will hold on to my gold investment until 2017.
- Property investments made by Singaporeans can be badly hit in the short term as the rental market is not expected to be doing well with worsened employment situation. Local banks in Singapore are either putting a temporarily halt in approving UK property loans or issuing warnings about the potential exchange rate risks to Singaporean investors.
- Free Trade agreement negotiations between UK and Singapore will be delayed. Businesses importing goods from UK will be benefitted from lower exchange rate risk while businesses exporting goods to UK will be badly hit.
In short, I viewed the impacts of BREXIT as a positive one to me as it presents a good investment opportunity for me to whack pounds in the second half of 2016 and better gold price appreciation in 2017. What do you think?