Singapore in 2012 will be challenging from a macroeconomic point of view because 1) Singapore's economy is very open as evidenced by the 200% export-to-GDP ratio, and our major trading partners are facing economic problems.

Domestically, Singapore's property market is potentially a drag on Singapore's economic growth and the property down cycle has just begun.

One bright spark is much of this bad news has been factored into the market and Singapore valuations are low.

Valuations from a PE perspective is trending at around 11X and 12X, far below traditional levels, while corporate balance sheets are still strong.

Over a two to three year time frame, investors who enter now are very likely to make positive gains.

From an macroeconomic perspective, Europe and US markets are being forced into fiscal cutbacks and this will likely cause slowdowns.