Strategy for 2014 Post Budget Announcement

What a day for our finance minister to announce the budget for 2014. There are a few point which has caught my eyes to formulate my strategy for the year. Below are the few points:

• Increase in Sin tax. http://sg.finance.yahoo.com/news/singapore-tax-sin-instead-wealthy-112408619.html
• No standoff from property cooling measures http://sg.finance.yahoo.com/news/singapore-says-too-early-relax-102434934.html
• Support for the construction industry http://sg.finance.yahoo.com/news/budget-govt-further-support-developers-085543209--sector.html
• Support for SME to upgrade http://business.asiaone.com/news/budget-2014-s500m-scheme-boost-smes-ict-adoption-rate, http://business.asiaone.com/news/budget-2014-pic-scheme-extended-until-ya2018, http://business.asiaone.com/news/budget-2014-more-support-singapore-companies-raise-funds

With the above support from the govt, we can look into a few areas for growth story and avoidance sector.

• Avoid property sector and Company that produce alcohol
• Look for companies that is less than 1.3bil in mkt cap as they are defined as Mid cap and small cap
• Blue Chips companies will not be in focus as their total operating cost will be increased due to increase in 1% CPF contribution. Thus avoid.
• Buying REITs only if it is undervalued and has more than 5.5% in dividend. This requires researching REITs 

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