2019's first home launches sell over 30% of units
Three condominium projects that were the first launches this year saw over one-third of their released units sold. An analyst said that the results reflected a "very, very cautious" market while another said this showed that there is still demand post-cooling measures. Of the 63 units released in RV Altitude, 20 were sold at average prices of S$2,729 psf to S$3,100 psf, net of discount. This project in River Valley Road has a total of 140 units and all are twobedders, ranging in size from 441 sq ft to 624 sq ft. The 71-unit Fyve Derbyshire had 13 units sold, out of the 36 units released on Saturday. According to Roxy-Pacific's chief executive officer Teo Hong Lim, the apartments sold at average prices of S$2,200 to S$2,700 psf are a "good mix" of two- and three- bedroom units.

The project in District 11 offers two- and three-bedders in one 19-storey block, with the units ranging from 560 sq ft to 936 sq ft in size. Allgreen Properties moved 70 units of one- to four-bedders in the 99-year leasehold Fourth Avenue Residences over the weekend. One- and two-bedroom units total 320 units and account for about two-thirds of the total 476 apartments. There are 132 three-bedroom units in the development located in Bukit Timah. Under Phase 1 of the launch, 168 units were released. The average price of the units under this phase was S$2,375 psf after a 5 per cent plus 3 per cent early-bird discount. 


Home owners of Ampas Apartment sue Oxley Holdings unit in collective sale dispute
Forty home owners of the 43-unit freehold Ampas Apartment, which was sold last year in a $95 million collective sale, have sued the buyer for wanting to pull out of the deal. Oxley Jasper, a subsidiary of public-listed Oxley Holdings, said it was entitled to call off the deal after its proposal for a new residential development was rejected by the planning authorities. Under the sale and purchase agreement, the deal was subject to outline planning permission for a new development comprising at least 120 units, each averaging 700 sq ft. But the Urban Redevelopment Authority (URA) said the maximum allowable number of dwelling units for the site is 112, adding that the formula for computing the permissible number of units can be found in guidelines issued in 2012. The 40 owners, who are suing for damages, argued in a High Court suit filed earlier this month that the buyer was not entitled to rescind the agreement. The suit, filed in the name of five owners representing 35 others, says the alleged rescission should be declared null and void. Oxley has applied to strike out the lawsuit, arguing that the 40 plaintiffs do not have the legal standing to sue. 


Elizabeth Towers up for en bloc sale again at reserve price of S$610m
Elizabeth Towers, a freehold high-rise residential redevelopment site off Orchard Road, has been relaunched for sale by tender. The owners have set a reserve price of S$610 million, unchanged from their asking price in the earlier collective sale bid last year. This translates to a land rate of about S$2,416 psf ppr (per sq ft per plot ratio) based on its current gross floor area (GFA) of about 23,452 sq m. With the inclusion of a 7 per cent bonus balcony GFA subject to the authorities' approval, and a minimal development charge payable for the balcony area, the land rate will be lowered to about S$2,297 psf ppr. The tender closes on Feb 26 at 3pm.

Freehold property off Serangoon Road up for sale at S$8.5m
A new freehold, five-storey mixed development off Serangoon Road is up for sale at a guide price of S$8.5 million. The property, which comprises residential and commercial space, sits on a site area of about 1,791 sq ft. The total gross floor area is 6,068 sq ft, inclusive of bonus gross floot area of 446 sq ft. Located at 2 Ruby Lane, about 500 metres from Potong Pasir MRT station, the property is currently held under one single title, with the potential for strata sub-title division. The expression of interest exercise will end on Feb 21. 


Grange Heights owners relaunch collective sale bid
Owners of the Grange Heights condominium are the latest to relaunch a collective sale bid in what is a decidedly chillier market. The reserve price remains at $820 million, the same as in the second tender exercise that closed without a deal in October. This translates to $1,948 per sq ft per plot ratio, including bonus balcony gross floor area. No development charge is payable for the 136,676 sq ft site, which has a gross plot ratio of 2.8. The property sector has been slowing since cooling measures were imposed last July amid a rash of collective sale bids hitting the market. The Urban Redevelopment Authority later tightened rules on the maximum number of units in non-landed residential developments outside the central area. Grange Heights will not be subject to the new average size requirement of 85 sq m, as it is in the central region. The site could yield as many as 508 new apartments in various sizes, it added. The estate has 114 apartments and maisonettes and six penthouses, ranging from 1,884 sq ft to 4,575 sq ft. Each owner could make between $5.24 million and $10.76 million.

Yongnam CEO selling Binjai Park GCB for S$40m
Yongnam Holdings CEO Seow Soon Yong is selling his good class bungalow (GCB) in the Binjai Park enclave with a guide price of $40 million. The price tag, which works out to S$1,464 psf on a land area of 27,320 sq ft "will certainly pique buyers' interest”. The tender closes on March 1 at 3pm.


Developers get creative to push unsold condos
Buying a condominium may just land the purchaser a car as well, or at least a discount for one. Developers are getting creative in flogging unsold units, with some offering luxury cars in lucky draws and others giving out cash vouchers for such vehicles. Until recently, Mont Botanik Residence in the Hillview area was giving out $50,000 vouchers for Jaguar cars for every apartment unit purchased. The Straits Times understands that in the past month or so, the promotion has been replaced by a 3 per cent discount for the apartment units. After this discount, prices start at around $1.18 million for a two-bedroom unit in the freehold 108- unit condominium, which was launched for sale in the second half of last year. The project's developer, Tuan Sing Holdings, as well as the distributor for Jaguar, Wearnes Automotive, declined to comment on the collaboration. Industry observers said partnering a luxury car label is a way to brand the project and, more importantly, helps to attract buyers without lowering prices, which may devalue the condominium. National University of Singapore real estate professor Sing Tien Foo said the move by Mont Botanik Residence helps to "differentiate the residential development from other mid-range-priced projects in the Hillview area".


HK housing ranked world's least affordable for 9th year
Hong Kong has been ranked the world's least-affordable housing market for a ninth straight year. Not only did it retain the notorious title, homes in the city got further out of reach for most residents. The city's median property price climbed to 20.9 times median household income in 2018, up from 19.4 times a year earlier. Vancouver was ranked the second-most unaffordable market, leapfrogging Sydney - where the housing boom has gone into reverse. Melbourne came in fourth, followed by San Jose and Los Angeles. London was the worst European city, coming in equal 10th with Toronto. 


US home price rise slows sharply in December 2018
US home sales tumbled to their lowest level in three years in December and house price increases slowed sharply, suggesting a further loss of momentum in the housing market. The weak report from the National Association of Realtors (NAR) was the latest indication of slowing economic growth. A survey showed that consumer sentiment dropped in January to its lowest level since US President Donald Trump was elected more than two years ago. Existing home sales were now the weakest since Mr Trump was elected, said MUFG chief economist Chris Rupkey, "signalling the initial confidence boost from the new ideas and new legislation is falling flat".


America's most pricey home sold to billionaire Ken Griffin
Just days after buying one of the most expensive residential properties in London, the Citadel founder set a US record with the US$238 million penthouse at 220 Central Park South. The approximately 24,000 sq ft apartment will give him a place to stay when he's working in New York, a Citadel spokeswoman said. The price makes it America's most expensive home. Earlier this month, Mr Griffin paid about £95 million (S$168 million) for a 200-year-old home overlooking London's St James's Park not far from Buckingham Palace. The 20,000 sq-ft home includes a gym, pool and underground extension.

Budget 2019 to focus on education, healthcare, security
Singapore's needs in education, healthcare, security and defence are growing, and the upcoming Budget will focus on these areas, said Finance Minister Heng Swee Keat. Mr Heng, who will deliver the Budget statement on Feb 18, said another priority will be to help Singaporeans grapple with significant changes taking place in the global economy and make use of opportunities, especially with technology. Mr Heng gave a quick overview of some key challenges that Singapore faces. The Budget's "one simple aim" is to improve the lives of Singaporeans, and "the needs are very large, whether it is building big-scale infrastructure projects, like our MRT lines or the airport, or especially our HDB flats, or whether it's taking care of our seniors, and in fact all Singaporeans".

He also highlighted the importance of keeping the economy vibrant amid global uncertainties and rapid technological changes. Mr Heng cited developments such as the new risks building up in the global economy, be it Brexit or the protectionist movement growing around the world. He said: "People's support for globalisation is weakening because there is a sense that globalisation has left some people behind. And unfortunately, some of the developments are negative, even for their own country. Even for people who advocated a particular course of action, they're now regretting it." Said Mr Heng: "It just shows that when we make economic policies, we have to be very, very thoughtful of the long-term implications, and that we cannot avoid doing the difficult things." Singapore is on the right track by starting the process of restructuring its economy, he added. 


Budget 2019 could be generous - election or not: analysts
With Singapore's next general election due by April 2021, economists and political watchers see a chance that the upcoming Budget may be the final one before the polls, raising expectations of goodies such as handouts and tax rebates. Yet, regardless of whether Budget 2019 turns out to be a pre-election one, it is expected to be expansionary, given the economic outlook and recent accumulated surpluses.

The current government's accumulated surpluses are one main reason experts expect Budget 2019 to be expansionary, election or not. The government has accumulated surpluses of about S$15 billion from 2016 to 2018. As surpluses in one term of government cannot be carried over to the next, the government may choose to distribute the end-of-term surplus back to Singaporeans before the next election.


Singapore tops Asia-Pacific in talent competitiveness
For the sixth straight year, Singapore ranked first in the Asia-Pacific and second worldwide for attracting and developing talent, in the annual Global Talent Competitiveness Index released on Monday. Second only to Switzerland, Singapore was the only Asia-Pacific country in the top 10 and the only non-European county besides the United States, which came in third. Compared to other cities, however, Singapore fared less well, ranking 17th in the accompanying Global City Talent Competitiveness Index. The top three spots for cities were taken by Washington DC, Copenhagen and Oslo. The highestranking city in Asia-Pacific was Seoul in 10th place, with Taipei also ranking ahead of Singapore at 15th. Both indices are published by Insead in partnership with the Adecco Group and Tata Communications.

S$72m fund set up to boost skills in Singapore construction sector
A S$72 million training fund has been set up to help the building industry move away from labour intensive methods to more "smart" processes. The funds will go towards boosting skills in the building sector, including financing existing scholarship and sponsorship programmes for students and adults, said National Development Minister Lawrence Wong. The funds, which have been earmarked from June last year to May 2020, could benefit the 118,000 locals working in the construction industry as well as architects and facility managers. "The construction industry is rapidly changing, and it is changing all over the world, including in Singapore," said Mr Wong, adding that these changes are still behind the pace seen in sectors like transport and finance.

He noted that venture funding in building technology is growing and traditional firms are starting to do more to transform how they build, picking up new capabilities in automation, prefabrication and digital building and design methods. "To make all these happen, our people are at the heart of this transformation journey. How far we go depends on the quality of the people we have," added Mr Wong, who was speaking at an iBuildSG scholarship ceremony at the National University of Singapore. The S$72 million fund will support an enhanced iBuildSG Scholarship and Sponsorship programme for those seeking academic qualifications in a full-time undergraduate, diploma or Institute of Technical Education track. The programme partners students with industry firms so they will have a job in the sponsoring company on graduation. 


Singapore releases model governance framework on AI
Singapore has released a model governance framework on artificial intelligence (AI) which companies in the Republic and elsewhere can adopt as they grapple with issues that have emerged with new technology. The framework was released by S Iswaran, Minister for Communications and Information, at the World Economic Forum (WEF) meeting which he is attending. The framework is the first in Asia to provide detailed and readily implementable guidance to private-sector organisations using AI, said the Infocomm Media Development Authority (IMDA). It said the framework is a "living document" intended to evolve along with the fast-paced changes in a digital economy. Singapore also announced a collaboration with the WEF's Centre for the Fourth Industrial Revolution to further drive AI and data innovation.

Singapore's Dec inflation higher than analysts' projections
Singapore's headline - or overall - inflation climbed to 0.5 per cent last month compared with the same period in 2017, after falling to a six-month low of 0.3 per cent the month before. The change reflects higher inflation for services and retail items, as well as a smaller decline in accommodation costs, said the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI). Core inflation, which strips out accommodation and private transport costs, edged up last month as well. It rose to 1.9 per cent year on year, up from 1.7 per cent in November last year, mainly owing to bigger increases in the costs of services and retail items. Both figures are slightly higher than expected, with a Bloomberg poll of analysts tipping overall inflation to be 0.3 per cent and core inflation, 1.8 per cent. But for the whole of last year, overall consumer prices rose 0.4 per cent - lower than the 0.6 per cent rise in 2017. Core inflation for the year went up to 1.7 per cent, from 1.5 per cent in the previous year. For this year, MAS and MTI expect core inflation to be in the forecast range of 1.5 per cent to 2.5 per cent. 


Poll: Singaporeans expect overall consumer prices to stay flat
Singaporeans do not expect overall consumer prices to budge much in the next 12 months, but think that core inflation - which excludes housing and private transport costs - could still inch up. People here figured that inflation would hit 2.85 per cent in the year ahead, the quarterly DBSSMU Singapore Index of Inflation Expectations poll found last month. This was the third straight quarterly drop and a dip from the 2.88 per cent pinged by the previous survey three months prior. Meanwhile, core inflation expectations for the year ahead edged up from 2.92 per cent in September to 2.99 per cent last month, according to results released.


More government support for a slowing economy expected: Fitch
Fitch Solutions analysts are looking at looser fiscal policy from the Singapore government in February's Budget, according to a short commentary published by the agency. Given factors such as an impending global slowdown and the pressure on the Republic's exportdriven economy, the report said that the rising external downside risks "are likely to prompt policymakers to adopt policies to cushion the economy through domestic-oriented initiatives" such as public infrastructure spending. This could include pushing up rail and other redevelopment projects, as a softer public works pipeline was seen as a drag on the Singapore economy and its struggling construction sector in the second half of last year. Such infrastructure works have already been put on the table for the coming decade, the report noted.


E-commerce offering more long-term career opportunities
While jobs in South-east Asia's e-commerce sector used to be viewed as short-term, the sector is now offering more long-term career opportunities, experts have told The Straits Times. They were responding to a study released by e-commerce company iPrice Group last month, which said the number of employees in the biggest e-commerce firms in the region grew by around 40 per cent over the last two years. The study was conducted through LinkedIn and covered Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines. It looked at e-commerce giants such as Lazada, Shopee, Zalora, Tokopedia and Bukalapak. It found that the workforce of these largest players grew by an average of 808 employees per quarter between the end of 2016 and the third quarter of last year, equivalent to around 40 per cent over the two-year period. These figures come amid reports of a growing Internet economy in South-east Asia, which is on track to exceed US$240 billion (S$326 billion) by 2025, according to a report released last November by Google and Temasek. This economy now stands at US$72 billion in gross merchandise value (GMV). However, while people think of short-term roles such as delivery drivers in the e-commerce hiring space, experts said the sector is hiring employees for long-term roles.

First announced as part of the Transport Master Plan 2013, the CRL will stretch across Singapore to connect the western, north-eastern and eastern parts, including “potentially Changi Airport”, Mr Khaw said. Bright Hill will be one of four interchange stations in phase one of the CRL. The other interchange stations will be at Ang Mo Kio with the North-South Line, Hougang with the North East Line and at Pasir Ris with the East-West Line.

With the opening of the first phase, more than 100,000 households along the 29-km stretch will have their travelling times reduced by up to 40 minutes, he said. It will also bring Singapore closer to its goal of having eight in 10 households living within a 10-minute walk of an MRT station - fulfilling Singapore's vision for a 'car-lite' nation.

The new line – with a potential daily ridership of 600,000 - would connect residents along the East-West corridor to key employment centres such as Changi logistics park and the Jurong Lake district with significantly shorter travelling times, for example: commuters from Ang Mo Kio can reach any part of the island using public transport within less than one hour, basically saving easily 30 to 40 minutes of travel time.

In addition, “half of the 30-over stations have connections to other lines. This creates many more travel options for commuters. And it will help redistribute load in the other lines, generally giving better comfort to all commuters. At the same time, during disruptions, you have alternative travel options, enhancing the resilience of the entire network.

The first phase of the Cross Island Line (CRL), Singapore's eighth MRT line and its longest fully underground line, will open by 2029. For a start, there will be 12 stations - Bright Hill, Teck Ghee, Ang Mo Kio, Tavistock, Serangoon North, Hougang, Defu, Tampines North, Pasir Ris, Pasir Ris East, Loyang and Aviation Park. ​​It is one of three phases of the CRL, said the Land Transport Authority (LTA) on Friday (25 Jan 2019), adding that engineering studies are still being conducted for the second and third phase. These studies include the two underground alignment options in the vicinity of the Central Catchment Nature Reserve, south-west of Bright Hill station.

Below are the new MRT stations that will be operational from 2029 for the Cross Island Line: ​

Aviation Park Station is the eastern-most station on the first phase of the Cross Island Line (CRL), will be constructed along Changi Coast Road and is expected to be located near the Changi Airfreight Centre and Changi Beach Park. There are no residential condo projects nearby as that area is surrounded by industrial buildings and warehouses. 

Pasir Ris East Station will be constructed along Pasir Ris Drive 1, close to the Pasir Ris East Community Building and White Sands Primary School. The CRL will pass through the existing Pasir Ris Station, which is part of the East-West Line. The CRL line will be constructed underground. The station is close to White Sands Mall and Pasir Ris Town Park.

Coco Palms is an attractive condo in Pasir Ris along Pasir Ris Grove that still has a few units direct from developer.

Serangoon North station will be built along Ang Mo Kio Avenue 3, serving commuters travelling to Bowen Secondary School, Al-Istiqamah Mosque and Serangoon Community Club. 

This new Serangoon North MRT station will definitely please property buyers who are considering either one of these two beautiful newly launched residential condo projects: Affinity at Serangoon located along Serangoon North Ave 1 and Florence Residences located along Hougang Ave 2.

Tavistock Station will be constructed along Ang Mo Kio Avenue 3, near Ang Mo Kio Industrial Park 2, Chen Su Lan Methodist Children's Home and Tavistock Avenue. This is expected to increase the value of the HDB estates around the area.

​Teck Ghee Station will be located near the junction of Ang Mo Kio Avenue 6 and Ang Mo Kio Avenue 2. It will serve residents living at HDB blocks at Ang Mo Kio Avenue 1, as well as people travelling to Bishan-Ang Mo Kio Park. This is expected to increase the value of the HDB estates around the area.

​To facilitate the construction of the first phase of the CRL and associated road works, LTA said that the Government will partially acquire eight properties. The properties include Loyang Valley Condominium, an electrical sub-station at Loyang Avenue, Hitachi Chemical(s) at Loyang Way and Loyang Industrial Park at Loyang Lane. 


On the other end of phase one of the line, properties that will be partially acquired include Daikin Airconditioning (Singapore) and Gain City Best-Electric at Ang Mo Kio Industrial Park 2, Ang Mo Kio Hub, as well as Kong Meng San Phor Kark See Monastery at Bright Hill Road. LTA stressed that with the acquisitions, only ancillary features will be affected. "No buildings or operations will be affected, no structures will be demolished and no relocation will be required. LTA will reinstate any affected structures," LTA said. 

Budget 2019 could focus on SMEs: Analysts

As Singapore presses on with economic transformation, the Government can be expected to further nudge small and medium-sized enterprises (SMEs) to innovate and seek opportunities abroad, said observers ahead of next month's Budget statement. And in the face of technological disruption, the Government will also continue to prioritise helping affected professionals, managers, executives and technicians (PMETs) find new careers, they added. The observers were responding to Finance Minister Heng Swee Keat's recent comments on the Budget statement, which he will deliver on Feb 18.


Singapore, UK launch partnership to forge broader, deeper ties

As Singapore marks the Bicentennial of Sir Stamford Raffles' arrival and Britain begins a new era, both countries have started a partnership to broaden and deepen their ties in the years ahead. The Singapore-United Kingdom Partnership for the Future was launched by Foreign Minister Vivian Balakrishnan and British Foreign Secretary Jeremy Hunt during Mr Hunt's two-day official visit. The bilateral relationship "is as broad as it is deep", both ministers said in a joint statement that highlighted their countries' shared belief in free trade and international law, and their commitment to the rules-based multilateral system and to peace and prosperity in the Asia-Pacific. The partnership will see both sides build on existing links and strengthen collaboration, especially in these four areas: the digital economy; sustainable business and innovation; security and defence; and education, culture and youth. 


Singapore, Malaysia take steps to tackle bilateral disputes

Singapore and Malaysia are taking steps to defuse their air and maritime tensions, as foreign ministers on both sides reiterated their commitment "to preserving the vital relationship between both countries and to improving bilateral ties, on the basis of equality and mutual respect". Both countries are locked in two separate disputes - over territorial waters off Tuas and airspace management over southern Johor. On the air front, the ministers said that Malaysia will immediately suspend its permanent restricted area over Pasir Gudang for flights, while Singapore will do the same for new aircraft landing procedures for Seletar Airport.


Re-employment model remains relevant; retirement age should stay at 62: panel

The retirement and re-employment model for older workers continues to be relevant - and the mandatory retirement age should remain at 62 years, according to employer, government and worker representatives. Their views were made at an Institute of Policy Studies' (IPS) forum on older workers, where questions were raised on the retirement age and the working of the Re-employment Act introduced in 2012. However the compulsory re-employment offer made to workers when they retire at 62 doesn't provide them sufficient security because the length of re-employment, which was extended in 2017 from the age of 65 to 67, is in practice determined on a yearly contractual basis. 

Thomson-East Coast line to add MRT station at Founders' Memorial in Marina Bay

The Thomson-East Coast MRT line (TEL) will have an additional stop between Tanjong Rhu and Gardens by the Bay stations, the Land Transport Authority (LTA) announced. The Founders' Memorial station will be named after and situated next to a 5 hectare memorial being built to showcase the contributions of modern Singapore's founders. Both are scheduled to open in 2025. Engineering provisions for an MRT station had already been put in place - in anticipation of future developments in the area - but the station was not announced earlier because plans for the memorial were confirmed only in 2017. The LTA said China Railway First Group has been awarded a S$242.4 million contract to build the station, and construction work will start later this year.


Earn and Learn scheme to be launched for air transport sector

Manpower constraints are expected across all sectors due to Singapore's demographic changes and the keen competition for talent, said Senior Minister of State for Trade and Industry and Education Chee Hong Tat. With little relief in sight, companies will need to step up their business transformation through both technology and skills upgrading, he added. "Technology alone is not enough, because you also need a skilled workforce," he told reporters on the sidelines of a company visit to SATS in-flight catering centre. "The application of technology to transform business operations and the upgrading of skills of the workers to then do these higher-level jobs well - I think that's a powerful combination."


Singapore property agents' track records now available online

Would-be Housing Board flat buyers and sellers can now find out more about property agents' track record with the click of a button. The Council for Estate Agencies (CEA) launched the Property Agents' Transaction Records Initiative, which publishes the records of residential transactions facilitated by realtors here in the last two years. The first phase of the initiative has seen the CEA's website updated to include information on completed Housing Board resale transactions. This includes when the flat changed hands, where it is located, and whether the agent represented the buyer or seller. "The additional information can provide consumers with a clearer understanding of the agent's experience in terms of how active he or she has been in the last two years in closing HDB resale transactions, in which HDB towns, and whether he or she was acting for the buyer or the seller," the CEA said. 

Economy World Bank warns of threat to global economy from trade conflict

Trade conflict between the world's two largest economic powers is already inflicting collateral damage, and threatens to do yet more harm to the global economy, the World Bank has warned. And the global slowdown is beginning as government and corporate debt rises, especially among the poorest countries, while mounting interest rates increase borrowing costs, the bank said in its semi-annual Global Economic Prospects report. The report was markedly more pessimistic than a year ago - when the outlook was for synchronised global growth - and peppered with exhortations to take "urgent", "imperative" or "critical" action. Growth of the world economy is expected to slow to 2.9 per cent this year, and 2.8 per cent in 2020, slightly below the previous forecast, and the estimates for nearly all regions and countries were downgraded. 


Singapore must continue to transform economy amid global uncertainties: Heng

Singapore must continue to innovate and transform its economy in the face of uncertainties in the global economy and rapid technological advancements, said Finance Minister Heng Swee Keat. At the same time, Singaporeans must also be equipped with the relevant skills so that the country can progress together, Mr Heng said in a Facebook as he called for the public to continue sharing suggestions for the upcoming Budget. Mr Heng will deliver the 2019 Budget statement, which sets out the nation's strategic financial plan, on Feb 18. The Finance Ministry has been garnering feedback for the Budget from Singaporeans since Dec 3 last year through various channels, and will wrap up the exercise on Jan 11.


South-east Asia best market for growth, investment: Poll

Top executives in Singapore say South-east Asia heads the list of markets for growth and investment opportunities, with China coming in a distant second. A poll of 104 head honchos here found that about 53 per cent of them ranked South-east Asia ahead of China (23 per cent). The majority of respondents indicated that trade tensions between the United States and China were the top market concern and challenge, followed by rising interest rates and slowing global growth. The findings came in the third annual survey commissioned by Citibank. The BT-Citibank Outlook Survey polled top managers, including those holding the position of chairman, chief executive and managing director. Most were aged 40 and over. The research was conducted online by Singapore Press Holdings in November. About 86.5 per cent of respondents placed US-China trade tensions as the top geopolitical challenge this year while about 6 per cent considered it to be Brexit. As for global political stability and the international trade situation, most believed that things would worsen in the first six months of this year. 

EDB to go into risk-sharing venture financing

Beyond its traditional task of attracting firms to set up here, the Singapore Economic Development Board (EDB) wants to help firms get involved in the start-up ecosystem - by supporting corporate venture capital. "Risk-sharing financing" is one of the new areas that EDB managing director Chng Kai Fong is keen to explore in 2019, just over a year since he took on the role in October 2017. Before joining the EDB, Mr Chng was principal private secretary to Prime Minister Lee Hsien Loong from Sept 1, 2014 to Sept 30, 2017. His previous roles in the public service included being director of the communications group in the Prime Minister's Office and director of resource industry at the Ministry of Trade and Industry, among others. The EDB will work with big corporates to set up corporate venture arms and evaluate deals, while taking part in financing, he tells The Business Times. "We help them de-risk a little." 


Singapore firms' payment performance dips for third straight quarter

The last quarter of 2018 saw a deterioration in local firms' payment performance for three straight quarters, and more companies were also slow in payment compared with the last quarter a year ago, according to the Singapore Commercial Credit Bureau (SCCB). SCCB said prompt payments slid 4.48 percentage points quarter on quarter to 43.83 per cent of total payment transactions, while slow payments saw an improvement as there was a 0.92 percentage point dip to 38.02 per cent of total payment transactions. Partial payments increased by 5.41 percentage points to 18.15 per cent in the fourth quarter of last year from 12.74 per cent in the third quarter. From a year-on-year perspective, prompt payments dropped by 6.57 percentage points, while slow payments increased by 1.1 percentage points. Partial payments rose by 5.47 percentage points. 

Singapore goes underground to boost land use

From its towering "supertree" vertical gardens to a Formula 1night race, Singapore is known for many attractions. Underground space, however, is not one of them. But that may soon change, as the city-state prepares to unveil an Underground Master Plan in 2019. With some 5.6 million people in an area three-fifths the size of New York City - and with the population estimated to grow to 6.9 million by 2030 - the island nation is fast running out of space. Singapore has been reclaiming land for decades, but that is increasingly unsustainable due to rising sea levels and other impacts of climate change. So, the city is going underground. Singapore has already moved some infrastructure and utilities below ground, including train lines, retail, pedestrian walkways, a five-lane highway and air-conditioning cooling pipes. It also stores fuel and ammunition underground.

Now, the city wants to go further. "Given Singapore's limited land, we need to make better use of our surface land and systematically consider how to tap our underground space for future needs," said Ler Seng Ann, a group director at the Urban Redevelopment Authority (URA). The Underground Master Plan will feature pilot areas, with ideas including data centres, utility plants, bus depots, a deep-tunnel sewerage system, warehousing and water reservoirs. There are no plans to move homes or offices below ground. Singapore joins only a handful of cities that are mapping their subterranean space, said Peter Stones, a senior engineer with the consultancy Arup, which did a study for URA comparing its use of underground space to other cities.


Free trade agreements signed in 2018

Singapore signed three major free trade agreements (FTAs) this year, which are expected to progressively remove tariffs on Singapore products entering the European Union, as well as eliminated import tariffs on trade with countries such as Mexico and Canada, which the Republic had no trade agreements with. Over the years, Singapore has forged a network of over 22 implemented agreements. 
Singapore capitalising on growing fintech remittance industry New high-tech players with their low fees and virtually instant mobile transactions are shaping up as one of the most disruptive forces in the financial industry. And Singapore is capitalising heavily on this trend, buoyed by its large migrant workforce and a sizeable contingent of Singaporeans working overseas and expatriates posted here, said industry observers. People here sent around US$6.2 billion (S$8.5 billion) overseas last year, according to World Bank estimates. This does not include remittances coming into Singapore. Singapore has become the fifth biggest remittance market in the Asia-Pacific, after Hong Kong, Australia, Japan and Malaysia, according to the International Fund for Agricultural Development in May.


Global economy poised to feel pain of trade war

While 2018 was the year trade wars broke out, 2019 will be the year the global economy feels the pain. Bloomberg's Global Trade Tracker is softening amid a fading rush to front-load export orders ahead of threatened tariffs. And volumes are tipped to slow further even as the US and China seek to resolve their trade spat, with firms warning of ongoing disruption. Financial markets have already taken a hit. Bank of America Merrill Lynch estimates that the trade war news has accounted for a net drop of 6 per cent in the S&P 500 this year. China's stock market has lost US$2 trillion in value in 2018 and is languishing in a bear market. Recent data underscore concerns that trade will be a drag on American growth in 2019.

Money transfer sector heats up with tech

The once-stodgy remittance market has burst into life as increasing numbers of companies - from start-ups to legacy banks - fight to get a slice of the booming market in international money transfers. They are using a variety of ways to set themselves apart from the competition, including making their cost structures transparent and allowing customers to send money with a tap on their mobile phones.


Look ahead 2019: 3 things to watch out for in Asia

Firstly, China-US ties likely to remain fraught.
Even if China and the United States do reach a deal in March that reduces trade tensions, bilateral relations will not get better in the new year for the world's two largest economies.

Secondly, Naruhito is likely to continue Emperor Akihito's life work
Emperor Akihito will be the first Japanese monarch in 200 years to abdicate the throne when he steps down on April 30, with his elder son Naruhito taking over as monarch the next day.

Lastly, an uphill battle for Modi.
Prime Minister Narendra Modi has travelled the world to raise India's profile, ushered in one of the biggest reforms of modern-day India with a goods and services tax, and presided over one of the world's fastest-growing economies.


Singapore’s growth could cool on global trends next year

Singapore’s economy is expected to grow by 3 per cent to 3.5 per cent for 2018, in an upgraded estimate from the Ministry of Trade and Industry. But official economists have a more uncertain take on the year ahead, with a forecast of 1.5 per cent to 3.5 per cent for 2019. The Business Times takes a look at the latest data behind the cooling sentiment.


High net worth, mass affluent offer private banks best potential

Private banks enjoyed robust net inflows in 2018, but risk appetite has turned cautious in the wake of the market downdraft and worries over the fallout from US-China trade tensions. There is a silver lining to the market volatility, however. Bankers report healthy inflows into discretionary portfolio management (DPM) services where investment decisions are taken out of clients' hands. A number of banks are also capitalising on expansion into Asia's burgeoning wealth markets. These include DBS Bank which completed the acquisition of ANZ's retail and wealth management business earlier this year. Bank of Singapore (BOS) partnered SMBC Trust Bank and expects to raise its profile in the Japanese high net worth and ultra-wealthy segments.

Semiconductor outlook remains bright despite electronics downcycle: EDB

Though the global electronics cycle is easing from its peak, Singapore Economic Development Board (EDB) director for semiconductors Pee Beng Kong highlighted bright spots ahead, with investments made in 2017 and 2018 - by firms such as AAC, ams, RF360, Soitec, Siltronic, SSMC and Micron - expected to continue ramping up in the coming quarters. The US-China trade war has yet to take its toll, he said. Far from their heyday being over, the electronics and semiconductors sectors have been growing as pillars of Singapore manufacturing, he said. Output in the sectors had a compound annual growth rate (CAGR) of about 5 per cent and 8 per cent respectively between 2008 and 2017, increasing their share of manufacturing output from 27 per cent to 38 per cent, and from 15 per cent to 27 per cent respectively over the period.


As manufacturing slows, diverse factors may drive 2019 growth

As clouds of global uncertainty show no sign of lifting and Singapore's manufacturing industry - its erstwhile growth driver - continues to cool from a once red-hot pace, it may seem unclear where the country should look to for growth in 2019. Still, economists see potential in sectors both old and new, with growth staying relatively resilient in the face of weaker external demand and allowing the possibility of further monetary tightening ahead. Compared to this year's 3 to 3.5 per cent range, the official growth estimate for 2019 is 1.5 to 3.5 per cent, with most economists expecting it to come in within 2.5 to 3 per cent. 


Singapore's overall, core inflation both ease in November

Singapore's headline or overall inflation fell to 0.3 per cent in November, a six-month low, as private transport costs fell for the fifth month in a row this year. The drop in the consumer price index, which measures the cost increase of all items, is the first in three months. Since August, it had remained at 0.7 per cent. But last month, it eased on the back of smaller increases in services costs and in prices of electricity and gas, and retail items, offsetting a slower pace of decline in accommodation costs. Core inflation, which strips out accommodation and private transport costs, also slowed, to 1.7 per cent from 1.9 per cent in October, a joint statement from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said. Both overall and core inflation came in under economists' expectations of 0.6 per cent and 1.9 per cent respectively, according to consensus forecasts compiled by Bloomberg. 

Residential market set to stay resilient in 2019 despite cooling measures

Singapore's residential market is expected to remain resilient both in terms of transaction volume and prices in 2019, despite the July 6 cooling measures. Demand for residential properties has stayed largely resilient since the cooling measures, although buyers have become more selective in view of the higher upfront costs due to the increase in the additional buyer's stamp duty (ABSD) across the board, with the exception for first-timers. This is evidenced from the encouraging sales in select new launches such as JadeScape and Parc Esta in recent months.

Additionally, rents and occupancy rates are recovering, underpinned by the low incoming supply through 2021. This bodes well for the rental market and could translate into some buying demand in completed properties as rental yield recovers. For 2018, we expect overall residential prices to grow by between 7 and 8 per cent. Transaction volume is expected to come in at around 23,000 units. This is just a tad lower than the 25,000 units transacted last year. Next year, prices are expected to remain in positive territory at between zero and 3 per cent. This is generally supported by the nation's GDP growth forecast which, according to Oxford Economics, will be around 3.1 per cent in 2019.


Properties put up for auction surge

The number of properties put up for auction surged by almost 50 per cent in 2018 compared with 2017, even as the number that successfully went under the hammer fell sharply. There was a rush of listings in the final three months of 2018, with more than a third put up in the fourth quarter, according to a property consultancy. There were 1,120 properties put up for auction — the highest since 2011 — a 47.4 per cent increase from the 760 listings last year. Out of the 1,120 listings, 41.9 per cent were residential properties, 22.9 per cent were retail units and 24.8 per cent industrial properties. Owner sale listings also reached a record high since 2011, increasing by 72.7 per cent. But this was driven by a larger number of listings in the retail and industrial segment. There were 689 auction listings in 2016 and 788 in 2015, with the majority of listings being residential properties.

About 60 per cent of 2018's listings were put up between July and December, with 291 and 380 listings in the third and fourth quarter, respectively. The decline in successful auctions also meant that sellers have not dropped their prices as much as buyers would have hoped. “Sellers may not be so willing to adjust their prices in response to cooling measures,” said Mr Lee Sze Teck, head of research for property agency Huttons Asia. “Some of them are in a strong (cashflow) position, so they are not in a hurry to sell.” The numbers in the auction market were similar to the resale market, which has been affected more by the cooling measures as compared to new launches, added Mr Lee. Based on caveats lodged with the Urban Redevelopment Authority, Mr Lee said that resale volume for private properties tumbled by more than 40 per cent after the cooling measures. Only 2,672 resale transactions were recorded in the third quarter of 2018, compared to 4,700 in the previous quarter.

Private rental market may be held up by en bloc sellers, lower supply

The outlook for the private residential leasing market looks promising in 2019, with rent and occupancy rates likely to improve as supply eases and demand continues to be supported by displaced owners. According to data from the Urban Redevelopment Authority (URA), a total of 10,119 private residential units are slated for completion in 2019, higher than the 7,898 units that could be completed this year. However, the tally for 2019 is still lower than the ten-year average annual supply of 12,950 units, noted Huttons Asia head of research Lee Sze Teck. In the first three quarters of this year, the URA private residential property rental index has edged up 1.6 per cent after turning around in Q1 2018, although rents are still nearly 12 per cent below their peak in Q3 2013, analysts said.


​Huttons Asia expects rents to pick up by 2 per cent for 2018 as a whole, and projects the upward trajectory to continue next year, supported by economic growth. Mr Lee said: "If market demand maintains at the 10-year historical average of 11,400 units, occupancy rate will continue to improve and rents might edge up another 3-5 per cent in 2019." Drilling down by region, rents in the core central region (CCR) could pick up faster than the rest of central region (RCR) and outside central region (OCR), Huttons forecasts. "There has been very low volume of launches in the CCR for the past few years. Coupled with the high number of successful en bloc deals in the CCR - almost 40 sites or 1,800 units since 2016 - it means that growth of new residential units in the CCR will be very low in 2019," said Huttons' Lee Sze Teck. 

A varied portfolio, with a long-term eye on property

Putting his investment eggs in a range of baskets is paying off well for engineer and property investor Dennis Leong. The strategy is delivering him stable returns and setting him up for a sustainable retirement. Besides owning a total of five residential properties in China and Singapore, his portfolio includes shares, real estate investment trusts (Reits) and bonds. While in China, he bought three properties there - all fully paid up and being rented out. In Singapore, he has two properties. Besides his residential unit, he own a two-bedroom, 860 sq m apartment in central Singapore. He bought this unit a decade ago at $980,000 and its market value is approximately $1.8 million. All four investment properties are fully paid up and rented out at an annual yield of about 6 per cent. The properties in China are leasehold while those in Singapore are freehold.


What your condo management can do if you break rules 

Park properly in condos or you may get slapped with hefty wheel clamp release fees. But are management corporations (MCs) allowed to issue punitive fines? The answer is actually no. Under the Building Maintenance and Strata Management Act (BMSMA) - the framework MCs use to administer estates - MCs have no powers to impose fines and penalties. But lawyers and property experts say fees - not fines - are likely allowed if covered by the property's by-laws. In 2016, the Strata Titles Board (STB) ruled that a by-law which imposed a penalty and was not made in the interest of all unit owners was invalid. By-laws are made through resident votes at general meetings and are binding on the building's subsidiary proprietors, lessees and occupiers. Commercial and industrial buildings are similarly subject to the BMSMA and not allowed to impose fines or penalties. As a result, MCs are cautious when dishing out these charges.

The recent URA ruling on average unit size for residential projects launched from Jan 17, 2019 states that the average size of new private apartments outside the Central Area has to be 85 sq m, up from 70 sq m before is welcomed by buyers as it makes apartment space more liveable for homeowners.

The upsizing of units was announced on Oct 17 by URA through three circulars on building guidelines for non-landed residential developments. Nine areas in Singapore — up from four currently — will be subject to a more stringent requirement of an average unit size of 100 sq m. These nine areas are Marine Parade, Joo Chiat-Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens Road-Chancery, Pasir Panjang, Kovan-How Sun area, Shelford and Loyang.

With effect from Jan 17, 2019, the bonus gross floor area (GFA) cap for outdoor spaces — such as balconies, private enclosed spaces and private roof terraces —in private non-landed projects will be reduced from 10% to 7%. The total balcony area for each unit will be capped at 15% of the net internal area. A new scheme that will take effect immediately will offer a bonus of up to 1% GFA to encourage developers to provide residents with more indoor recreational spaces such as gyms or function rooms.

​This latest URA circular addresses the problem of rising psf prices and shrinking apartment sizes and is generally expected to benefit consumers as it means developers will have to build more family-friendly units outside the Central Area. With up to 50,000 residential units in the pipeline, the authorities do not want too many shoebox apartments because it could lead to problems down the road.

The likely effect of increasing the floor area of units will mean the average psf selling price of residential projects will be lowered as developers try to maintain affordability in terms of the absolute price of the unit therefore may result in a moderation in overall prices. The increase in floor area of units will mean more comfortable and livable homes. Fewer units per project will translate into lower density in housing estates, and thus, an improvement in the living environment.

The increase in floor area of units will mean apartments will mean apartments will not be as densely built as they are now. 

In the near term, the revised guidelines should not affect developers that have bought land and obtained both the pre-application traffic feasibility study (PAFS) from the Land Transport Authority and planning approvals from URA, e.g. the four recently acquired sites by CDL at Amber Park, West Coast Vale, Handy Road and Sumang Walk Executive Condominium sites.

Generally, the supply that is scheduled through 2023 — assuming five years of construction — should be unaffected by the new circulars. From 2023, there is likely to be a readjustment of unit sizes in line with changing economics and demographics. Together, a greater choice of unit sizes, an optimal balcony size, more indoor recreational spaces and less traffic congestion within an estate should lead to a more sustainable property market.

The revised average unit sizes translate into a 20% reduction in the number of units, and together with the restrictions on the spread of units and usage of balconies, is likely to discourage developers from participating in government land sale or collective sale tenders.

While we may see a decline in land prices in the near term, a lack of supply in the future might be an unintended consequence. Given that the revised development guidelines will only be implemented three months from now, developers with existing land parcels are likely to bring forward their planning process. Developers that have purchased land through en bloc deals this year could face some challenges in obtaining planning permits.

The restrictions to average unit size of 85 and 100 sq m do not apply to the Central Area, which URA defines as 11 planning areas such as Outram, Newton, River Valley, Singapore River, Marina South and Marina East, Rochor, Orchard and Downtown Core.

Home owners looking for property in the city usually don’t mind living in an apartment the size of a hotel room for the convenience of being close to the MRT station, Orchard Road or the CBD. Thus, in the prime districts of Orchard Road and the financial district, there is still a market for compact one- and two-bedroom apartments.

Singapore property 'standstill' expected in 2019: analysts

Just when Singapore's residential property market was reviving after a four-year slump, government moves to curb the exuberance might play spoiler going into the new year. Home prices that are forecast to climb as much as 10 per cent this year could remain flat in 2019 and may decline as much as 3 per cent, estimates from property brokers compiled by Bloomberg News showed. Home sales that lagged behind 2017 levels this year may once again be below that mark in 2019, according to forecasts. The pace of residential property price increases is slowing after the government added measures to cool the market in July. Additional guidelines that limit the number of "shoebox" apartments developers can build, plus anti-money laundering safeguards that restrict builders, are further constrictions. The government said earlier this month it also plans to slow its release of land sales for residential use in the first half of 2019, citing a spike in supply and a cooling in demand.


Housing demand could still fuel 2019 growth in Singapore

The local housing market could still support Singapore's growth in 2019, despite the curbs unveiled this year, bank analysts said this week. Standard Chartered's (StanChart) global chief economist David Mann, who is based here, acknowledged that "there are lots of cross-currents" in the air, from dampeners like an electronics cycle slowdown to upsides like a ramp-up in investment diversions into Asean. Domestic drivers could include "a relatively robust market demand for housing" that supports home prices as inflation grows while lauding shock cooling measures as a cap on "unnecessary speculative froth". Where Singapore is concerned, though, the house hews to the street's view: It expects economic growth to cool to 2.6 per cent in 2019, from an estimated 3.3 per cent this year.

Condominiums and private apartment resale prices strengthened by 0.2 per cent last month from October. This follows a 0.3 per cent drop in October, a figure revised from an earlier estimated decline of 0.4 per cent. Before August, resale prices had an unbroken 12-month run to new highs. Now, year-on-year, they are still up by 8.8 per cent from November 2017, but are down 0.7 per cent from their peak in July when the additional property curbs were announced. Buying activity in the resale market continued to remain lacklustre. An estimated 662 units were resold in November, a 4.6 per cent decline from the 694 units in October. Resale volume compared to a year ago was 55.4 per cent lower than the 1,483 units moved in November 2017. 

Singapore condo rents up 0.6% in November; HDB rents down 0.5%

The rental market for private non-landed property in Singapore picked up in November while it slowed for HDB properties, going by flash data. Rents for condominiums and private apartments in November increased by 0.6 per cent from the previous month. The monthly decline in rents for October was raised to 0.9 per cent from 0.7 per cent estimated earlier. They were unchanged in August. Year on year, private rents are up by 0.3 per cent from November 2017. However, compared to their record high in January 2013, they are down by 19.6 per cent. 


Fintech workers helping to prop up private rental market

More hiring in the fast-growing fintech services sector has been holding up the rents for condominiums and private apartments. Rentals for HDB properties, however, slowed last month according to flash data. Rents for private, non-landed homes last month increased by 0.6 per cent from the previous month. Year on year, private home rents were up by 0.3 per cent last month. However, compared with their record high in January 2013, they were down by 19.6 per cent. Although the leasing volume dipped by 11.8 per cent last month from a year ago, the number of units leased for the first 11 months rose 5.9 per cent to 51,757 units from 48,882 units in the same period a year ago. Private rents in the prime or core central region (CCR) rose 1.8 per cent last month from a month ago, while rents in the city fringes or rest of central region (RCR) grew by 0.6 per cent. However, rents in the suburbs or outside central region (OCR) fell by 0.3 per cent. Year on year, RCR and OCR rents have risen 1.2 per cent and 0.8 per cent respectively, but CCR rents have dropped by 1.5 per cent.


Condo management has no power to make by-law: Judge

A condominium management corporation took a unit owner to court to pay damages it had based on a condo by-law - but the High Court ruled that the MC did not have the power to make such a by-law in the first place. Striking down the MC's bid to seek some $344,000 from the owner, whose tenant had encroached on common walkway space, the judge said there was no provision under the Building Maintenance and Strata Management Act (BMSMA) for the MC to make such a by-law. Instead, the BMSMA provides for the MCs to recover damages arising from breaches of by-laws by applying to the court, said Judicial Commissioner Dedar Singh Gill in judgment grounds.


HDB to launch around 15,000 new flats in 2019

The Housing Board (HDB) will launch about 15,000 new flats in 2019 in neighbourhoods like Sengkang, Jurong West and Kallang/Whampoa. This includes around 2,000 flats with shorter wait times in Tengah, where prospective home owners can expect to collect the keys to their new flats in two to three years from the point of application. "HDB will continue to monitor the housing needs of Singaporeans closely and calibrate our flat supply carefully to provide affordable and quality housing to all," it said

Landmark Tower buyer continues to seek funds to finance collective sale

The Singapore wealth management and real estate services company who is buying Landmark Tower is continuing to raise funds to finance its stake in the collective sale. The joint venture had bought the Chin Swee Road site through a joint venture for S$286 million or $1,406 psf ppr, including the lease upgrading premium of S$57 million. The fundraising target is S$55 million by the end of Q1 2019, the company told The Business Times. The condo project will be launch in the second half of 2019, at a "low S$2,000 psf"


En bloc hopefuls cut prices as reality bites

Amid a decidedly quieter collective sale market, some homeowners have become more measured in their expectations as seen by the downward price adjustments at some en bloc potentials. The latest of these is Park View Mansions, which relaunched its tender at a reserve price of S$250 million, or 22 per cent lower than when it first launched earlier this year. In late October, Gilstead Mansion relaunched its en bloc at S$65 million, or S$3 million less than its guide price in June. At Park View Mansions, more than 80 per cent of the owners at the 191,974 sq ft development right by Jurong Lake Gardens consented to the new price, "in view of current market conditions", marketing agent Huttons Asia said in a statement. The new price translates to a land rate of roughly S$969 psf ppr, after taking into account an estimated differential premium and lease upgrading premium of some S$140.8 million. Angela Lim, deputy head of investment sales, told BT that the first time round, there was interest but no bid higher than the reserve price. She said developers had been "closely tracking" Park View Mansions' progress of securing a lower reserve price for the past few months. Terence Lian, head of investment sales for Huttons Asia, said in a statement: "The site presents an excellent redevelopment opportunity for developers as it is located right next to Jurong Lake Gardens. This is a rare piece of land which offers a seamless connection to the gardens and provides a natural environment, hence enhancing the well-being of residents." He also pointed to the Jurong Lake District, slated to be Singapore's second Central Business District. The break-even could be S$1,450 psf according to Huttons' estimate. The tender for Park View Mansions closes at 12pm on Jan 18.


Kampung Admiralty project attracts international attention

Kampung Admiralty, nestled in the Woodlands heartland, buzzes like any HDB community, but has lately become a destination from people from all over the world looking to learn about and photograph this retirement community. Designed by local architecture firm Woha Architects, the village with its own amenities won World Building of the Year at the World Architecture Festival in Amsterdam last month. It beat 535 projects from 57 countries; it also won the Mixed Use Completed Building category in the same competition. The win has since catapulted the development into the spotlight on the world architecture map. 

Malaysia says it will take steps to de-escalate situation

Malaysia said it will take all effective measures to de-escalate the situation on the ground and handle the ongoing maritime boundary dispute with Singapore in a calm and peaceful manner. It also reiterated the importance of strong bilateral relations, and hoped that talks on resolving matters would start expeditiously, Malaysia's Foreign Ministry said in a statement. Singapore responded by saying it is "encouraged" that Malaysia has said it will take all effective measures to de-escalate the situation. Singapore also welcomes the Malaysian government's agreement that officials meet in the second week of January to exchange views on resolving the Johor Baru port limits issue, said the Republic's Ministry of Foreign Affairs (MFA). Still, MFA said Singapore is "disappointed" that Malaysia is unable to accede to its proposal to revert to the pre-Oct 25 status quo. The Johor Baru port limits were unilaterally extended by Malaysia that day, with Malaysia claiming waters belonging to Singapore as its own.


Six moneylenders with unique business models issued new licences

It is the first time in six years that MinLaw is issuing new moneylending licences since a moratorium was imposed in 2012. The one-time lifting of the moratorium is part of an initiative to better protect borrowers through business-led improvements. The new models include more comprehensive use of data to assess creditworthiness, using digitalised processes to lower cost and giving better terms to those who repay their loans early or on time, MinLaw said. All six firms have paid-up capital of at least S$1 million and demonstrated a track record in providing consumer credit, whether in licensed moneylending or in other sectors of consumer credit. MinLaw said there are currently 162 moneylending outlets in Singapore. The new licensees will be allowed to operate for up to two years from next year, after which MinLaw will evaluate the results of the pilot and consider options for refining the moneylending regulatory regime.


Trade tensions seen among 2019's top business risks

Trade tensions between China and the United States, nationalist politics and increased environmental regulation are among the top risks for firms in 2019, according to specialist risk consultancy Control Risks' annual look at the year ahead. In Asia, pressure on China's slowing economy will not bode well for commodity-focused economies such as Indonesia, Australia and Malaysia. And countries in the Asia Pacific - including Singapore - will increasingly have to choose between the competing visions which China and the US have for Asia. Another risk is that amid rising nationalist sentiment, multinationals will come under pressure. In Asia, as economies cool, politicians may "play the nationalist card" in areas such as foreign investors' access to sectors, and preferential policies for local companies. Climate change will not only bring business disruptions through extreme weather - from storms and floods to droughts and fires - but also encourage politicised environmental regulation.


Economy watchers trim Singapore 2019 GDP forecasts

Singapore is headed for a slowdown, private-sector analysts said, while agreeing that the US-China trade war is the top risk to the economy. Growth in next year's gross domestic product (GDP) is expected to ease by a wider margin than was projected three months ago, according to the latest quarterly survey by the Monetary Authority of Singapore (MAS). The manufacturing sector - where the linchpin electronics segment has hit a bump - could continue to weigh down the Singapore economy, with the long-awaited recovery in construction perhaps unable to offer relief. Economists trimmed their forecast for next year and predicted that Singapore's growth will come in at 2.6 per cent, down from the 2.7 per cent forecast earlier. For 2018, GDP growth is expected at 3.3 per cent, 0.1 point lower than the projection from a similar poll in September - even as 2018's full-year estimate was bumped up from 3.2 per cent. 

Singapore shoppers 2nd in Asia-Pacific for buying foreign goods online

Online shoppers in Singapore are second only to their counterparts from Hong Kong in the AsiaPacific when it comes to making purchases from overseas, particularly from Chinese websites. An Ipsos study commissioned by PayPal found around 73 per cent of online shoppers here bought items from overseas in the past year, with 14 per cent shopping exclusively on foreign websites. Ipsos is a market research and consulting firm based in France. The results showed that 75 per cent of shoppers in Hong Kong made cross-border online purchases. Ipsos surveyed more than 34,000 respondents in 31 markets from March to May this year for the study, including 1,000 from Singapore. Clothing, footwear and accessories topped the list of most popular categories of items bought online, with around 70 per cent of respondents in Asia buying at least one item in the past year. Global shoppers mostly went to online stores based in China, with respondents citing better prices as the primary reason. The rise of international e-commerce in Singapore is a positive sign at a time when countries are putting up more barriers as trade protectionist sentiments grow around the world, concluded a panel of industry insiders while discussing the PayPal report at Republic Plaza.


Singapore's consumer confidence hits 3-year high in Q3

Consumers remained pessimistic about their lot in the economy but felt a little bit cheerier in the third quarter. In fact, confidence in the three months to Sept 30 rose to its highest level since it entered gloomy territory three years ago. The Singapore Consumer Confidence Index was at 98 points for the quarter, up from 94 in the previous three months. Any score below 100 denotes pessimism. The index has been in pessimistic territory - and below the global index level as well - since the fourth quarter of 2015, when it dipped from 101 points to 94. Three indicators underpin the index: consumers' perception of the state of their personal finances, local job prospects and their spending intentions. Singapore recorded improvements in all three, both on year-on-year and quarter-on-quarter bases.


Retail sales up 0.1% in October, way below forecast

Retail sales ticked up slightly in October but came in well below market expectations. Takings at the till rose just 0.1 per cent over the same month last year - a far cry from the 1.9 per cent increase in September and a mile short of the 1.5 per cent tipped by analysts polled by Bloomberg. ​Excluding motor vehicles, retail sales rose 0.5 per cent. Car sales fell by 2 per cent year on year, noted the Department of Statistics. However, takings at department stores dropped 3.6 per cent, and those at supermarkets and hypermarkets were down by 2.9 per cent compared with October last year. Retailers of optical goods and books recorded sales declines of 1.9 per cent, while those selling recreational goods saw a drop of 1.8 per cent. The total retail sales value in October was about $3.7 billion, with online accounting for an estimated 5.3 per cent. 

S'pore doing well in human capital: World Bank report

Singapore is generally doing well in investing in human capital and is well positioned to deal with the changing nature of work, experts and the World Bank said. The World Bank noted that although there were concerns that technology would replace jobs, new platforms will create employment opportunities in fresh areas. "Robot density per worker in 2018 is the highest in Germany, Korea and Singapore. Yet in all of these countries, despite the high prevalence of robots, the employment rate remains high," it said. New platforms such as Grab expand job opportunities and Singapore is able to take on these changes.


Job market picks up, but hiring may be easing

The labour market continued to improve in the third quarter of this year, but several indicators show that hiring may be slowing amid global uncertainties. Between July and September, more people were employed here and fewer lost their jobs, compared with the preceding three months. Official figures released by the Ministry of Manpower (MOM) showed that total employment, excluding foreign domestic workers, grew by 16,700 from July to September. This was the fastest rate in four years, surpassing even the preliminary estimates of 15,200 released in October. Observers said this is likely driven by good economic growth in the first half of the year. But overall unemployment crept up slightly, and the proportion of residents who found work last quarter within six months of being retrenched slipped to 62 per cent, down from 64 per cent in the second quarter. Lower re-entry rates were seen across all age groups.