On Helping Newly-Weds

1. Introduction

This report addresses two issues on helping newly-weds Anthony Than and Jasmine Lim. This report compromises their investment opportunities and if they should purchase a new house or rent a house.

Three options has been set aside for the couple in deciding on which to invest

Sheng Siong Group Ltd, Oversea-Chinese Banking Corporation Limited (OCBC Bank) and

Singapore Government is selected for the report.

1.1. Background of Sheng Siong Group Limited

Sheng Siong Group Ltd started as a Cheng Siong Pig Farm in Punggol in the 1980s, however due to resettlement, Lim Hock Chee; CEO and founder of Sheng Siong Group Ltd have to sell all the excess unsold meat. In 1985, he chance upon a provision store that did not sell pork and rented part of the store to sell his excess pork meat. Soon after, he bought over the store from the owner who has run into financial trouble (Infopedia-Sheng Siong, 2010). Since then, he progressively opened more stores island-wide. Till date the group has a chain of 33 supermarkets and Headquarters cum distribution centre at Mandai (Sheng Siong Group relocated, 2011). The company was awarded Super brands in Year 2008/09/11 (Super brands Singapore, 2009). It was listed on the Singapore Stock Exchange on 17 Aug 2011 (Biz-Daily Sheng Siong Lists on SGX, 2011). Since listing it has committed to continue distributing up to

90% of the group's net profit after tax as dividends, for the financial years ending 31 Dec 13 and

31 Dec 14.

It is expected that Sheng Siong Group will have an annual turnover to S$1.2 Billion in 5 to 10

Years' time (Superbrands-Sheng Siong, 2011) considering it has been in the industry for over

28 years. Since listing, it has grown over 0.32 points from 0.36 to current 0.68 (Refer to Annex

A).

1.2. Background of OCBC Bank

Oversea-Chinese Banking Corporation Limited also known as OCBC Bank is the world strongest bank. It is the most popular bank among start-up entrepreneurs for creating a business account. It is the longest established bank in Singapore formed in 1932 and had consistently profitable in the past decade (Refer the Annex B). OCBC Bank was also the only foreign bank to have branches in China in the 1950s. In 1925, they opened a first branch in Xiamen of China, the first Singapore bank to do so. By 1970s, their total resources