SINGAPORE in RECESSION !!!

[kueytoc]

Analysts say retrenchments expected as early as December

Channel NewsAsia - Saturday, October 11

SINGAPORE : Singapore’s economy is expected to grow by only 3 per cent this year.

This falls short of the earlier gross domestic product forecast range of between 4 and 5 per cent.

Given the bleak short—term outlook ahead, Christmas is unlikely to be very merry in Singapore.

Some analysts said retrenchments could hit home as early as December, while others predict the full impact will be felt in the second and third quarter of next year.

42—year—old Ahmad Adnan Dormat hopes to survive the hard months ahead. He starts a new job as a pool cleaner on Monday, earning about S$1,450 a month before contributing to the Central Provident Fund.

Ahmad’s wife is a homemaker. The family spends about S$300 every month for household needs.

When Ahmad was unemployed for two months, he applied to six companies for a job. But he only received one call back.

Since then, he has been tapping on what little savings he has to support his family of four. But the fear of losing his job lingers with the poorer economy today.

And while the good news is that Asia is not at the epicentre of this current crisis, it is little comfort to the average worker.

Irvin Seah, economist, DBS Bank, said: "At least for the next four quarters or so, we should prepare ourselves mentally for a slower growth and a softer labour market.

"You would probably see your bonuses not coming in, fresh graduates will probably have difficulties finding good—paying jobs and those who would like to seek for better opportunities will find it extremely difficult. So to put it (simply), we are in for a rough ride ahead."

Mr Seah added: "We have been through some difficult times during the Asian Financial Crisis. And if you compare to those days, the banking sector, the structure of the banking sectors in Asia has certainly become a lot stronger. Banks are much more robust and better capitalised nowadays — I am referring to the Asian banks.

"So we are definitely in a much better position, and I believe that as long as for the US and the Eurozone, (if) they are able to find solutions to the problems, then I guess Asia should be able to ride off this difficult times and emerge even stronger."

Community organisations are bracing to help needy residents. North West Community Development Council is starting a kitchen cooperative, which will be operational by the end of the year.

Teo Ho Pin, Mayor, North West District, said: "This kitchen is basically to provide jobs to our residents. At the same time, it is also a business, where we bake Malay kuehs, pastries to sell and to cater to various functions.

"It will also provide hot meals for needy residents. And one of the kitchens will be located at Bukit Panjang CC, and that will cater to about maybe 100 residents in Bukit Panjang town."

Dr Teo added: "We are expecting more residents to come forward to the CDC for assistance. So what we have done at Northwest CDC is that we have geared up in our various assistance schemes. So in terms of our job assistance schemes now, we are focusing on helping our residents to switch careers or move into (a) new industry, especially the service industry.

"So we have worked out various schemes... recently we had a career exploration scheme, where we actually provide opportunities — working with employers — to give our job seekers opportunities to have a work trial.

"That means going to the company to work for a couple of days, then if the employers and job seekers... find that they can match, then we will support in terms of providing training, subsidies, and they will undergo a proper training course to upgrade their skills, and we will also help them transit into their new work environment."

The CDC also plans to offer hot meals to needy residents. With the downturn, it is expecting the number of applications for social assistance to go up from 600 to 800 a month. — CNA/ms

[kueytoc]

Singapore investors decry losses from Lehman bonds

By ALEX KENNEDY,Associated Press Writer AP - Sunday, October 12

SINGAPORE - Hundreds of distraught Singaporean investors flooded a park Saturday to express their anguish at losses from structured notes issued by Lehman Brothers Holdings Inc. that they say were sold to them by banks as safe investments.

Among the crowd that gathered were retired, middle class and working class investors who told a similar story. During the past few years as their other fixed-income instruments matured local bank officials pushed a 5 to 7-year bond that would yield about 5 percent, higher than the 0.5 percent interest rate banks pay on checking or savings account deposits.

"This wasn't some pyramid scheme, or so we were led to believe," said Lawrence Chin, a 62-year-old retired salesman who invested 50,000 Singapore dollars (US$33,760) in the bonds in 2006.

"Now they say they're toxic. I never knew a bond could be toxic," said Chin.

Small investors such as Chin are bearing part of the destruction wrought by a credit crisis that began last year with U.S. sub-prime mortgages and has since engulfed markets around the world. Investment bank giant Lehman declared bankruptcy last month.

The central bank, known as the Monetary Authority of Singapore, said about 8,000 people bought S$508 million (US$343 million) of Lehman-linked structured notes from nine banks and brokerages.

The bank said Friday that the bonds' trustee, HSBC, "has not received firm proposals from potential new swap counterparties" and the notes' underlying securities would not be sold for at least two weeks.

"I'm afraid I could lose all my money," said taxi driver Tan Weng Yeow, 60. "I invested S$10,000 (US$6,752), which is a lot for someone like me. I'm really upset. I want the government or the bank to give me back some of my money."

On Wednesday, hundreds of angry investors protested in Hong Kong to demand a full refund of their investment in Lehman-backed bonds. The Hong Kong government proposed Monday a plan under which local banks and distributors of the bonds would buy back the products at a value to be decided on later.

However, most investors rejected the plan which they said would only help recover a small part of their investments and said banks failed to explain to them the products were linked to the U.S. company.

Hong Kong's Securities and Futures Commission estimated investors owned about US$2 billion of outstanding Lehman-related investment products in the city.

Singaporean investors met in a park known as Speakers' Corner, the only outdoor space where the government allows limited protests and public gatherings. Protests are very rare in Singapore, as the government enforces strict rules against public assembly and criticism.

"I came down here because I really don't know what to do and I wanted to talk to other people in my same situation," said a 45-year-old engineer who would only gave her surname of Lim. "I invested S$70,000 (US$47,265) and now my daughter is asking me if she can still go to university. It's terrible."

[kueytoc]

Asia's migrant workers fear losing jobs in global crisis

AFP - Sunday, October 12

SINGAPORE, Oct 12, 2008 (AFP) - As the global financial storm blows fear through Asia's stock markets, Filipino maid Christy Arciaga is jittery -- even though she does not own any shares.

Her businessman employer has lately become more irritable as he has watched his investments being swallowed in a sea of red ink, and the 46-year-old domestic helper is often on the receiving end of his bad moods.

"My employer would turn on the television every morning to check the latest stock market report even before breakfast. He is often angry and tells me he might send me home even before my contract ends," Arciaga said.

"The thought of going back has caused me sleepless nights. What about my family? Two of my children are still in college."

Thousands of migrant workers, among them maids, restaurant staff and labourers working in wealthy Asian cities such as Singapore and Hong Kong, are worried that an economic slowdown and retrenchments resulting from the crisis could hit their employers' pockets, and leave them without jobs.

This would mean that the flow of remittances they send home to their poor families will dry up -- and with it money for food, clothing and school fees.

Another maid, Myra Catacutan, 34, said she recently heard her employer angrily talking on the phone with someone, presumably a financial adviser, demanding her money back.

"My employer was shouting to the one on the other line: 'Give me back my money'. When she turned to me, she was teary-eyed and told me she could lose a big amount," she said. "I am worried she might let me go."

William Gois, regional coordinator of the non-government group Migrant Forum in Asia, said that any massive retrenchment would worsen poverty in the migrants' home countries.

"Families dependent on (overseas) remittances will find now that nothing is coming in and it might further aggravate the poverty situation," Gois said by telephone from Manila.

The Philippines, Indonesia, Bangladesh and Sri Lanka, which are key exporters of human labour, would be most affected, he said.

The Philippine central bank has said money sent home by Filipinos working abroad totalled 9.6 billion US dollars for the first seven months of the year and is expected to hit a record 15.9 billion for the whole of 2008.

-- Slowdown could see millions sent home

Another problem is the large numbers of migrant workers without proper documents in Hong Kong, Japan, Malaysia, Singapore and South Korea, Gois said.

"In times of an economic slump, the first thing that governments do is crack down on undocumented workers because they are seen as a burden to the economy and a problem to society," he said.

Gois said there are more than 53 million migrant workers from Asia employed worldwide, mostly in the Gulf countries and the Middle East. A high percentage are low and middle skilled labourers.

While there have been no reports so far of large layoffs, workers interviewed by AFP said they are worried.

"Of course I am afraid," a Bangladeshi worker said in between drilling with a jackhammer near a suburban housing complex.

"I don't understand much about the reason for the crisis but I'm just concerned my company will be affected."

In Singapore, sending home a maid could save a household at least 600 Singapore dollars (407 US) a month.

Many of those who employ maids also dabble in stocks and other financial products whose value has been eroded because of the turmoil.

With foreign visitor arrivals in Singapore falling for the third straight month in August, there could be retrenchments in restaurants and shops, which employ many Filipinos and mainland Chinese.

Any slowdown in the construction sector would affect thousands of migrant labourers from Bangladesh, India, Myanmar, Thailand and China.

In Hong Kong, which is home to 150,000 Filipinos mostly employed as maids and in bars and restaurants, worries about fallout from the crisis have already begun to resonate through the tight-knit community.

"Migrant workers are very worried," said Eman Villanueva, secretary general of United Filipinos in Hong Kong, a migrant rights group.

"They are first of all concerned about their jobs. Most of the people in Hong Kong who employ domestic workers will have investments or are facing potential job losses because of the financial crisis."

Villanueva said that many migrants were also concerned about the safety of their own investments.

"Many have paid for education insurance to make sure their children are able to go to university, or into a pension. They are worried about what will happen to their money," he said.

[TayHongSiang]

Asia's migrant workers fear losing jobs in global crisis

AFP - Sunday, October 12

SINGAPORE, Oct 12, 2008 (AFP) - As the global financial storm blows fear through Asia's stock markets, Filipino maid Christy Arciaga is jittery -- even though she does not own any shares.

Her businessman employer has lately become more irritable as he has watched his investments being swallowed in a sea of red ink, and the 46-year-old domestic helper is often on the receiving end of his bad moods.

"My employer would turn on the television every morning to check the latest stock market report even before breakfast. He is often angry and tells me he might send me home even before my contract ends," Arciaga said.

"The thought of going back has caused me sleepless nights. What about my family? Two of my children are still in college."

Thousands of migrant workers, among them maids, restaurant staff and labourers working in wealthy Asian cities such as Singapore and Hong Kong, are worried that an economic slowdown and retrenchments resulting from the crisis could hit their employers' pockets, and leave them without jobs.

This would mean that the flow of remittances they send home to their poor families will dry up -- and with it money for food, clothing and school fees.

Another maid, Myra Catacutan, 34, said she recently heard her employer angrily talking on the phone with someone, presumably a financial adviser, demanding her money back.

"My employer was shouting to the one on the other line: 'Give me back my money'. When she turned to me, she was teary-eyed and told me she could lose a big amount," she said. "I am worried she might let me go."

William Gois, regional coordinator of the non-government group Migrant Forum in Asia, said that any massive retrenchment would worsen poverty in the migrants' home countries.

"Families dependent on (overseas) remittances will find now that nothing is coming in and it might further aggravate the poverty situation," Gois said by telephone from Manila.

The Philippines, Indonesia, Bangladesh and Sri Lanka, which are key exporters of human labour, would be most affected, he said.

The Philippine central bank has said money sent home by Filipinos working abroad totalled 9.6 billion US dollars for the first seven months of the year and is expected to hit a record 15.9 billion for the whole of 2008.

-- Slowdown could see millions sent home

Another problem is the large numbers of migrant workers without proper documents in Hong Kong, Japan, Malaysia, Singapore and South Korea, Gois said.

"In times of an economic slump, the first thing that governments do is crack down on undocumented workers because they are seen as a burden to the economy and a problem to society," he said.

Gois said there are more than 53 million migrant workers from Asia employed worldwide, mostly in the Gulf countries and the Middle East. A high percentage are low and middle skilled labourers.

While there have been no reports so far of large layoffs, workers interviewed by AFP said they are worried.

"Of course I am afraid," a Bangladeshi worker said in between drilling with a jackhammer near a suburban housing complex.

"I don't understand much about the reason for the crisis but I'm just concerned my company will be affected."

In Singapore, sending home a maid could save a household at least 600 Singapore dollars (407 US) a month.

Many of those who employ maids also dabble in stocks and other financial products whose value has been eroded because of the turmoil.

With foreign visitor arrivals in Singapore falling for the third straight month in August, there could be retrenchments in restaurants and shops, which employ many Filipinos and mainland Chinese.

Any slowdown in the construction sector would affect thousands of migrant labourers from Bangladesh, India, Myanmar, Thailand and China.

In Hong Kong, which is home to 150,000 Filipinos mostly employed as maids and in bars and restaurants, worries about fallout from the crisis have already begun to resonate through the tight-knit community.

"Migrant workers are very worried," said Eman Villanueva, secretary general of United Filipinos in Hong Kong, a migrant rights group.

"They are first of all concerned about their jobs. Most of the people in Hong Kong who employ domestic workers will have investments or are facing potential job losses because of the financial crisis."

Villanueva said that many migrants were also concerned about the safety of their own investments.

"Many have paid for education insurance to make sure their children are able to go to university, or into a pension. They are worried about what will happen to their money," he said.

I have no worries.

Have been controlling budget and only buy good and healthy corals selectively.

[kueytoc]

All that money you've lost - where did it go?

By ERIC CARVIN, Associated Press Writer AP - Sunday, October 12

NEW YORK - Trillions in stock market value _ gone. Trillions in retirement savings _ gone. A huge chunk of the money you paid for your house, the money you're saving for college, the money your boss needs to make payroll _ gone, gone, gone.

Whether you're a stock broker or Joe Six-pack, if you have a 401(k), a mutual fund or a college savings plan, tumbling stock markets and sagging home prices mean you've lost a whole lot of the money that was right there on your account statements just a few months ago.

But if you no longer have that money, who does? The fat cats on Wall Street? Some oil baron in Saudi Arabia? The government of China?

Or is it just - gone?

If you're looking to track down your missing money _ figure out who has it now, maybe ask to have it back _ you might be disappointed to learn that is was never really money in the first place.

Robert Shiller, an economist at Yale, puts it bluntly: The notion that you lose a pile of money whenever the stock market tanks is a "fallacy." He says the price of a stock has never been the same thing as money _ it's simply the "best guess" of what the stock is worth.

"It's in people's minds," Shiller explains. "We're just recording a measure of what people think the stock market is worth. What the people who are willing to trade today _ who are very, very few people _ are actually trading at. So we're just extrapolating that and thinking, well, maybe that's what everyone thinks it's worth."

Shiller uses the example of an appraiser who values a house at $350,000, a week after saying it was worth $400,000.

"In a sense, $50,000 just disappeared when he said that," he said. "But it's all in the mind."

Though something, of course, is disappearing as markets and real estate values tumble. Even if a share of stock you own isn't a wad of bills in your wallet, even if the value of your home isn't something you can redeem at will, surely you can lose potential money _ that is, the money that would be yours to spend if you sold your house or emptied out your mutual funds right now.

And if you're a few months away from retirement, or hoping to sell your house and buy a smaller one to help pay for your kid's college tuition, this "potential money" is something you're counting on to get by. For people who need cash and need it now, this is as real as money gets, whether or not it meets the technical definition of the word.

Still, you run into trouble when you think of that potential money as being the same thing as the cash in your purse or your checking account.

"That's a big mistake," says Dale Jorgenson, an economics professor at Harvard.

There's a key distinction here: While the money in your pocket is unlikely to just vanish into thin air, the money you could have had, if only you'd sold your house or drained your stock-heavy mutual funds a year ago, most certainly can.

"You can't enjoy the benefits of your 401(k) if it's disappeared," Jorgenson explains. "If you had it all in financial stocks and they've all gone down by 80 percent _ sorry! That is a permanent loss because those folks aren't coming back. We're gonna have a huge shrinkage in the financial sector."

There was a time when nobody had to wonder what happened to the money they used to have. Until paper money was developed in China around the ninth century, money was something solid that had actual value _ like a gold coin that was worth whatever that amount of gold was worth, according to Douglas Mudd, curator of the American Numismatic Association's Money Museum in Denver.

Back then, if the money you once had was suddenly gone, there was a simple reason _ you spent it, someone stole it, you dropped it in a field somewhere, or maybe a tornado or some other disaster struck wherever you last put it down.

But these days, a lot of things that have monetary value can't be held in your hand.

If you choose, you can pour most of your money into stocks and track their value in real time on a computer screen, confident that you'll get good money for them when you decide to sell. And you won't be alone _ staring at millions of computer screens are other investors who share your confidence that the value of their portfolios will hold up.

But that collective confidence, Jorgenson says, is gone. And when confidence is drained out of a financial system, a lot of investors will decide to sell at any price, and a big chunk of that money you thought your investments were worth simply goes away.

If you once thought your investment portfolio was as good as a suitcase full of twenties, you might suddenly suspect that it's not.

In the process, of course, you're losing wealth. But does that mean someone else must be gaining it? Does the world have some fixed amount of wealth that shifts between people, nations and institutions with the ebb and flow of the economy?

Jorgenson says no _ the amount of wealth in the world "simply decreases in a situation like this." And he cautions against assuming that your investment losses mean a gain for someone else _ like wealthy stock speculators who try to make money by betting that the market will drop.

"Those folks in general have been losing their shirts at a prodigious rate," he said. "They took a big risk and now they're suffering from the consequences."

"Of course, they had a great life, as long as it lasted."

[kueytoc]

Asia's luxury infatuation under pressure during economic woes

AFP - Tuesday, October 14

HONG KONG (AFP) - - The question of whether the Asian market for branded handbags, watches, jewellery and fashion will be snipped or scalped by the likely global economic slowdown is dominating retailers' minds.

During a recent trip to her "expensive" Hong Kong hairdresser, luxury brand consultant Radha Chadha asked her stylist if recent turmoil in the world's stock markets had affected business.

"I am now offering people shorter haircuts. It's so they will last longer," the stylist told Chadha, author of "The Cult of the Luxury Brand: Inside Asia's Love Affair with Luxury".

Over the past five years, Asia has provided extremely strong profits growth for luxury names such as Louis Vuitton, Gucci and Rolex, Chadha said.

"Asia has been very helpful... in keeping the luxury industry boasting a decent rate of growth," she told AFP.

High streets are packed with the heavily designed "brand experience" stores, even in second and third tier Chinese cities, highlighting the crucial role the country plays in the luxury companies' growth strategy.

Glossy magazines heave under the weight of high-end adverts, with a recent 808-page edition of Hong Kong-based lifestyle monthly "Prestige" tipping the scales at a handbag strap-ripping three kilograms (6.6 pounds).

But there are creeping signs that the region's tumbling stock markets could stifle the previously insatiable appetite for the correct brand name.

Japan's retail sector has been in the doldrums for a while. Sales at department stores dropped 3.1 percent in August from the same month a year earlier, the sixth consecutive monthly decline, the Japan Department Stores Association said.

Staff at one of Singapore's prime shopping districts said sales of luxury goods had slipped in recent days because of fewer tourists. Customers are buying less and some just browse, they told AFP.

The number of visitors to the city state fell 7.7 percent in August compared to a year earlier.

"We are located in a tourist area and there are fewer tourists now," said one member of the sales staff in a store selling Prada handbags.

A Japanese tourist coming out of a nearby Gucci store said she had planned to spend 3,000 Singapore dollars (2,000 US) during her trip on branded goods, but recent events had cut her budget.

"It makes me feel guilty to spend more because of the economic crisis," she said.

Chadha, who is based in Hong Kong, said such behaviour is not unusual.

"There is a lot of spending which needs that feel-good factor," she said.

"When things are going really well, that is when a lot of people go and spend. People are not going to splurge on a bag if they have lost money during the day."

Despite the negative signs, some top-end brands believe it is too early to tell if the global slowdown has stopped people buying.

"So far there has been no effect in regards to traffic or a decline in sales compared to last year," a spokesman for the jewellery brand Cartier told AFP.

"The effects of the economic slowdown on the luxury goods sector in Asia remains to be seen. Christmas will be a better indicator in regards to whether the industry will be affected."

Swiss luxury goods giant Richemont recently said the company enjoyed sales growth of 19 percent in the region during the five months to the end of August, although Japan dropped eight percent.

And the outlets, many long-planned, keep coming.

The Emporio shopping centre in New Delhi was given the go-ahead two years ago and became one of the country's first dedicated luxury malls when it opened recently, Chadha said.

"Staff there were very positive," said Chadha, who has visited. Only around half of the plots were filled, Chadha added, although such a situation is not unusual for a new mall.

Whether the Emporio is bustling in six months could be a crucial test of whether the region will overcome the gloomy economy to remain a brand-selling powerhouse.

[kueytoc]

Lelong ! Lelong !

Mini boom for pawnshops as economy turns for the worse

Channel NewsAsia - 1 hour 27 minutes ago

SINGAPORE: The economy may be down but business has been picking up for Singapore’s 110 pawnshops. In fact, there have already been four applications for pawnbroker’s licences in the last two months.

Following a sudden surge of customers during the inflationary burst earlier this year, many continue to pawn their valuables.

Ivan Ho, Singapore Pawnbrokers’ Association, said: "For the past couple of months, we felt that the inflation did create an impact to most of the citizens. But recently, due to the world financial crisis, the impact become more severe.

So the pawn brokers are facing a more prosperous period... we have to cope with all the customers who come in for financial assistance."

In the face of hard times, consumers are not only tightening their belts, but prefer to have cash in hand. Gold is another sure bet, with prices steadily increasing over the past two years.

Pawnbrokers said customers hope to see their gold pieces appreciate in value when they redeem their items at a later time.

But with the economic squeeze and rising gold prices, pawnshops are seeing fewer buyers picking up pawned jewellery.

Still, they said business continues to be brisk as those in need of small amounts of cash to tide them over resort to pawnshops, now that banks are stricter in approving loans. — CNA/vm

[kueytoc]

HK chief: meltdown worse than '97 Asian crisis

By JEREMIAH MARQUEZ, AP Business Writer AP - Wednesday, October 15

HONG KONG - The world financial meltdown is worse than the 1997 Asian financial crisis and will take a far bigger toll on the global economy, Hong Kong's leader said Wednesday.

"Its destructive force is much stronger and more widespread than the Asian financial turmoil," the territory's chief executive, Donald Tsang, said in a policy address.

"The recovery will take longer, be more difficult and certainly cannot be taken lightly," he said, adding that "the worst is yet to pass."

While better positioned to weather a global slump, Hong Kong's economy won't come out unscathed, he said. The local economy grew at a slower-than-expected 4.2 percent pace in the second quarter, posting its first quarter-on-quarter decline in years.

"We expect the economy to slow further," said Tsang, who was elected to a five-year term last year. "As a small, open economy and a global financial center, Hong Kong is not immune to the impact of this financial tsunami."

Tsang said he would set up and head a task force of government officials, industry experts and economists to monitor international markets and devise ways to bolster the government and local businesses.

The move comes a day after Hong Kong announced extra measures to further support the banking system in line with global efforts.

The territory's de facto central bank, the Hong Kong Monetary Authority, said it would use exchange fund reserves to guarantee the repayment of all bank deposits until 2010, regardless of the amount. The government also established a fund to make more capital available to local banks, though authorities said they didn't believe many institutions would need to tap it.

Also Wednesday, Tsang pressed banks to respond within a week to a government proposal under which local banks and other sellers of Lehman Brothers-backed bonds would buy back the products from investors.

The bonds' values have been in doubt since the U.S. investment bank collapsed last month, leading to street protests and widespread outrage among tens of thousands of Hong Kong investors.

[kueytoc]

'No MONEY, No HONEY' !

Singapore men put love on hold on financial worry

Reuters - Friday, October 17 By Koh Gui Qing

SINGAPORE, Oct 16 - "No money no honey" seems to be ringing true for Singapore's bridal agencies, which are seeing slowing business as the financial crisis and a looming recession hit love in the country.

Matchmaking agencies in the Southeast Asian country said the financial meltdown has forced some men to think twice about spending thousands of dollars to get a wife.

"About 10 percent of my customers say 'The economy is slowing down, I have no money,'" said Mark Lin, who runs the Vietnam Brides International Matchmaker in Singapore.

"In the past, girls used to get married in one to two weeks. Now it takes one to two months," he said, in a tiny office along Singapore's main shopping belt where five Vietnamese women chatted under walls covered with pictures of smiling newly weds.

Three to four customers pull out of their marriages each month now, forfeiting deposits paid to agencies, up from one to two clients before, Lin said.

The crisis, which sparked banking turmoil from the United States to Iceland, has traversed beyond financial markets into the real economy as falling home prices and fears of losing jobs force consumers to tighten their belts.

"Business has been very badly hit by the crisis. In the past, I would get around 20 calls a day. Now there are hardly any calls," said Hannah, who works at Truelove International Matchmaker in Singapore. She declined to give her last name.

"Some say the financial pressures from a marriage are just too great," she said, in a country that was booming last year but is expected to see a recession in the third quarter.

Couples in Singapore typically spend thousands of dollars when they tie the knot as newly weds host family and friends at a lavish dinner to mark the occasion.

Matchmaking is not uncommon in the country, which has a population of 4.8 million and a low birth rate, as older men turn to professionals to find a wife.

Some agencies help link up singles, while others -- like Lin's -- help customers find a prospective wife from abroad.

For S$8,000 , a man can pick a wife from among the women in Lin's shop, send her to the doctor, and get his marriage registered -- all in 12 hours, but only if the woman fancies him too.

If he does not fancy the women in the shop, he can pay another S$2,000 to fly to Ho Chi Minh City and meet 50-100 women in a hotel, but Lin warns customers this is illegal.

"My customers are usually over 35. That is when they get disappointed with Singapore women, whom they say have too high expectations," he said.

The women can stay in Singapore for only two months on visitor's passes if they are not married to a local, Lin said.

But as business slows to a crawl amid a sagging economy, some women have to go home without a husband.

"I hope to get married," said 19-year-old Nguyen Thi Hue, who returns to Vietnam on Thursday after two months in Singapore. "I want a husband who can dote on me and love me."

[kueytoc]

:confused: PM Lee: Future is 'cloudy'

Singapore PM sees slower growth, uncertainty next yr

Reuters - Saturday, October 18

SINGAPORE, Oct 17 - Singapore's Prime Minister Lee Hsien Loong said on Friday the city-state had fallen into recession and that the economic outlook over the next 12 months was uncertain.

"The current global financial turmoil has clouded Singapore's economic outlook. Our economy has gone into recession," Lee said at the opening of a research and development facility.

"We must expect slower growth and greater uncertainty at least over the next year."

Singapore last week eased monetary policy for the first time in five years after advance data showed its trade-reliant economy contracted for a second consecutive quarter in the July-September period.

The city-state's economy shrank an annualised, seasonally adjusted 6.3 percent in the third quarter, after declining 5.7 percent in the preceding quarter.

The Southeast Asian nation last sank into a recession -- defined as two consecutive quarters of economic contractions -- in 2002 in a global downturn after the Sept. 11, 2001 attack.

[kueytoc]

Hope for S'pore investors

MAS wants to focus on helping vulnerable investors

Channel NewsAsia - Saturday, October 18

SINGAPORE: Singapore’s central bank has not ruled out buying back minibonds linked to failed investment bank, Lehman Brothers.

But the Monetary Authority of Singapore (MAS) said its focus is to help "vulnerable customers".

Many investors have asked for a replacement to take on Lehman’s role in the minibond programme and they should know if such a replacement can be found by the end of next week.

If no replacement comes along, the assets could be sold so that investors could be paid. It is, however, unclear how much investors would be getting back. This has understandably caused some frustration among Singaporeans.

MAS said it is now investigating the matter and could not offer more details. But it added that the probe will look into allegations that financial institutions (FIs) have breached laws or have inadequate internal controls or poor sales practices.

Heng Swee Keat, managing director, MAS, said: "For cases where there are sufficient indications that the product was mis—sold or that it was clearly inappropriate given the investor’s profile and circumstances, the FI should take responsibility. Several FIs have assured MAS that they will take full responsibility in such cases."

This could mean that the banks may have to compensate some investors if evidence proved that the products were mis—sold.

Although thousands have been affected, MAS is more concerned about investors who are most vulnerable, such as retirees above 55 years old, those who are less educated, and first—time investors.

The central bank is also reviewing its regulatory framework to cope with the changing global investment environment.

About half of older S’poreans want to work for as long as they can

Channel NewsAsia - Saturday, October 18

SINGAPORE: About half of Singaporeans, aged between 43 and 60, surveyed want to work for as long as they can, according to a government survey.

This has prompted the Council for Third Age, an agency championing active ageing, to urge companies to get their workplaces ready for older employers.

The survey also showed that among the other half who plan to retire, three in 10 of them expect to do so beyond the official retirement age.

A longer life expectancy is among the factors set to make Singapore the fourth oldest population worldwide by 2050.

Thus, there are growing calls for companies to pay attention to how their workforces are aging and to have a wider perspective.

Gerard Ee, chairman, Council for Third Age, said: "During boom times, you’re so busy you have no time to send your employees for training. During this quieter downtime, this is the time to invest in training, to train your employees and to be prepared for the upturn."

Minister, Prime Minister’s Office, Lim Boon Heng, said: "In these uncertain times, you need people to have experience. The experience would count for how the company responds to the current crisis.

"Many employers would find that the older employees are valuable of the insights they have gained from the experience of past downturns."

Officials said that before changes can happen, people first need to talk about the issue. That is why an upcoming international conference on reinventing retirement will become increasingly relevant when it is held here next January.

The second edition of Reinventing Retirement Asia Conference will be held in Singapore for the first time.

In the lead up to the event, two local companies, Alexandra Hospital and SingHealth, have been recognised for their age—friendly workplace practices. — CNA/vm

[kueytoc]

Wah !...Whose real $$$ is it ???

Two town councils invested S$12m in Lehman—related structured products

Channel NewsAsia - Wednesday, November 19

SINGAPORE: The financial health of two Singapore town councils remains in the black despite their investments in failed Lehman—linked structured products. Holland—Bukit Panjang and Pasir Ris—Punggol Town Councils invested a combined S$12 million using their sinking funds.

Going forward, the co—ordinating chairman of PAP town councils, Dr Teo Ho Pin, said future investments will remain diversified but will be on the conservative side.

Just like thousands of Singaporean investors who have lost money on failed Lehman—linked structured products, the Holland—Bukit Panjang Town Council may lose its S$8 million investment.

The town council invested 6.7 per cent of its sinking funds available for investment in Lehman Brothers’ Minibond Notes, DBS High Notes 5 and Merrill Lynch’s Jubilee Series 3 Notes.

It had invested another S$3 million in Pinnacle Notes Series 6, but this investment was unaffected.

For Pasir Ris—Punggol, its S$4 million investments in the Minibond Series 2 and 3 amounted to 2.6 per cent of its funds.

Based on the 14 PAP town councils’ latest financial statements submitted to the National Development Ministry, these investments amounted to 0.6 per cent of their total funds of S$2 billion.

Like many others, the town councils are anxiously waiting to see if the Lehman Minibond notes will be making dividend payments next month.

Dr Teo Ho Pin, chairman, Holland—Bukit Panjang Town Council, said: "If there is a credit event that occurs next month for the Lehman Brothers’ Minibond, then that will be a default and... there’ll be a loss on that investment."

Town councils can invest up to 35 per cent of their sinking funds in financial instruments like equities, corporate bonds and funds.

Holland—Bukit Panjang Town Council said while its investment income will be reduced as a result of the failed investment, its financial status remains in the black and improvement works will not be affected.

During a six—year period starting from 2002, the return on its investments totalled about S$24 million. As of March 31 this year, it also has a total kitty of S$118 million.

Over the last six years, the Holland—Bukit Panjang Town Council made a healthy investment return of more than four per cent every year. This is well above the average fixed deposit return of 0.9 per cent. With the investment income, the town council has been able to deal with the impact of inflation.

Dr Teo continued: "Our assurance to our residents is that the sinking fund is still intact. We have adopted a very prudent approach in terms of investing our funds.

"We have to continue to adopt a diversified investment strategy so we are able to achieve healthy returns for our town council funds, cyclical maintenance purposes and we have to balance between investment risk and returns."

Six other PAP—run town councils also have exposure to Lehman Brothers through their fund managers’ investment portfolio.

These investments total some S$4 million and account for less than one per cent of each town council’s funds available for investments.

The National Development Ministry said it has no plans to amend the investment guidelines it has put in place as town councils are in the best position to decide how to manage the funds.

Senior Minister of State for National Development Grace Fu told Parliament on Monday it was not practical nor desirable for the ministry to be overly prescriptive in enforcing the guidelines, which seek to achieve an optimal balance between reasonable returns and financial prudence.

Hougang and Potong Pasir Town Councils, the two that are managed by opposition MPs, have earlier said they do not have any investments related to Lehman Brothers products and their sinking funds are not affected by the failed financial instruments. — CNA/vm

[ambystoma82]

then hw come still got pple appearing for exotic corals ??

lolx... pocket too deep didnt get affected arh? lolx..

[RockyBoy]

then hw come still got pple appearing for exotic corals ??

lolx... pocket too deep didnt get affected arh? lolx..

They invested in the correct bonds..

[kueytoc]

Lead by Example ?

Singapore's Temasek cuts pay to combat slowdown

Reuters - Saturday, November 22

SINGAPORE, Nov 21 - Singapore's state investor Temasek Holdings [TEM.UL] said on Friday it would cut pay across the board in a bid to slash costs as the firm projects tough economic conditions in 2009 and beyond.

Temasek, headed by Ho Ching, the wife of Singapore's Prime Minister Lee Hsien Loong, said senior managers had volunteered to take a pay cut of between 15 and 25 percent.

"We anticipate a global recession in 2009 and possibly beyond. Therefore, Temasek will institute a firm-wide wage cut," said Robert Chong, managing director of human resources at Temasek.

Chong also said the current crisis "will throw up tremendous opportunities" and that the majority of wage savings will be borne by their key managers. Temasek said it aimed to increase headcount by 15 percent over the next two years.

Temasek owns stakes in global banks such as Standard Chartered <STAN.L>, Barclays <BARC.L>, Merrill Lynch <MER.N>, Bank of China <601988.SS> and India's ICICI Bank <ICBK.BO>, the stocks of which have all fallen as the credit crisis unfolded, some of them very sharply.

Final government data released on Friday confirmed that Singapore was in recession. The city-state's economy shrank at a worse-than-expected rate of 6.8 percent on an annualised and seasonally adjusted basis in the third quarter, and the government said the economy may shrink next year.

[kueytoc]

World stocks tumble as economic fears deepen

AFP - Wednesday, December 3

LONDON (AFP) - - World stock markets tumbled Tuesday, dragged down by heavy losses the previous day on Wall Street after the United States confirmed it was in recession and a raft of grim data suggested worse lay around the corner.

A steep interest rate cut by Australia's central bank and fresh steps by Japan to tackle the credit crunch failed to soothe investor fears.

Stocks slumped in Asia, with Tokyo closing down 6.35 percent, Hong Kong sliding 5.0 percent, Seoul shedding 3.3 percent and Sydney sliding 4.2.

In early European trade, London was down 1.43 percent, Frankfurt lost 1.60 percent and Paris fell 1.41.

"We believe that last week's stock rally went too far and markets were ripe for a correction," said Dariusz Kowalczyk, chief investment strategist at CFC Seymour in Hong Kong.

"The reason for the rebound in risk aversion was dismal data from across the globe, mostly regarding the manufacturing sector in November," he said.

US manufacturing slumped to a 26-year low in November, highlighting the abrupt downturn in the world's biggest economy, a survey showed.

The National Bureau of Economic Research (NBER) said the US economy had been in recession since December 2007.

Investors were spooked by a report in the Wall Street Journal that investment bank Goldman Sachs -- which has fared better than many rivals during the financial crisis -- is likely to post a quarterly loss of as much as two billion dollars.

Australia's central bank slashed interest rates by 100 basis points -- a larger cut than expected that dropped the official cash rate to 4.25 percent, its lowest level in more than six years.

But the rate cut "didn't do anything to boost the market," said CommSec market analyst Juliette Saly.

Japan's central bank meanwhile outlined new measures to make it easier for commercial banks to borrow money using corporate debt as collateral, aiming to unclog credit markets that are vital to the economy.

In the 15-nation eurozone, an index of manufacturing activity hit a record low of 35.6 points last month, data revealed Monday.

"I have never before seen a financial system that has been in pain for so long," said Chuo Mitsui Trust Bank strategist Yosuke Hosokawa.

"Markets are wondering whether the negative situation will deepen further. My impression is that the recession will last for quite a while," he added.

Investors were also keenly watching developments over the fate of the Big Three US carmakers, whose executives return to Washington this week to plead again with lawmakers for financial lifelines to help them survive.

Finance ministers from the 15 countries sharing the euro failed to commit to a proposed 200-billion-euro (260 billion dollars) economic stimulus target while agreeing they need a joint anti-recession package.

Traders were anticipating big interest rate cuts by the European Central Bank and the Bank of England on Thursday to fight recession in the region.

[kueytoc]

PM Lee: Years of slow growth after recession

Singapore may face years of slow growth after recession

Reuters - Saturday, December 6

By Neil Chatterjee and Kevin Lim

SINGAPORE, Dec 5 - Singapore's economy, already in recession, may shrink in 2009 and face slow growth for years to come, the country's prime minister said, as the export-dependent city-state is hit by the fallout from the world economic crisis.

Lee Hsien Loong, at a lunch hosted by Singapore's Foreign Correspondents Association, said it was not government policy to weaken its currency -- a move that could help exporters but hurt the country's standing as place for investment.

"Singapore must be prepared for several years of slow growth," he said. "Even the most pessismistic bears did not anticipate the consequences of the bubbles," Lee added, referring to U.S. subprime housing woes and global trade imbalances.

The central bank, which sets monetary policy by managing the Singapore dollar against a secret basket of currencies, in October switched from allowing a gradual rise in the currency to a neutral stance of zero appreciation.

Some commentators expect the central bank to ease policy further by letting the currency weaken ahead of its next scheduled review in April.

Lee, the son of Singapore's founding father and former Prime Minister Lee Kuan Yew, is facing his biggest test since taking office four years ago, with the country's top trading partners the United States and Europe in recession and growth in Asian neighbours slowing.

Lee said policies to boost the economy would take effect immediately after being announced in an expansionary January budget. The government would partly rely on construction to help growth with project costs coming down, he said.

"It makes sense for us to take advantage of that," Lee said. "The budget emphasis will be on jobs." He expects unemployment to rise, particularly in manufacturing, which accounts for about a quarter of the economy.

Last month, the government pledged to spend S$2.3 billion to help firms get credit and said it would run a larger budget deficit to support an economy that it said could shrink 1 percent in 2009 and at best would expand 2 percent.

BANKING SECRECY

The government is trying to diversify away from manufacturing into service industries such as tourism and finance.

Singapore's banks have not suffered huge writedowns on risky debts unlike peers in the United States and Europe, though top bank DBS Group <DBSM.SI> said last month it would cut 900 jobs after suffering a 38 percent drop in quarterly profit.

Lee said Singapore may face political pressure from the European Union and the United States over its role as a financial centre for rich foreigners, following a landmark deal by offshore haven Liechtenstein with the United States to drop bank secrecy in cases of tax evasion.

"I expect Singapore to come under pressure too," he said in response to a question on whether pressure on countries like Liechtenstein and Switzerland will help private banks based in Singapore.

The government has previously denied suggestions that the country is a tax haven. It has strict bank secrecy laws and has been promoting itself as a rival financial centre to Hong Kong to attract banks such as UBS <UBSN.VX>, Credit Suisse <CSGN.VX> and Citigroup <C.N> to manage money for rich clients.

[kueytoc]

Jobless rate steady at 2.2%

Singapore final Q3 jobless rate steady at 2.2 pct

Reuters - Monday, December 15

SINGAPORE, Dec 15 - Singapore's jobless rate was 2.2 percent in the third quarter, unchanged from the previous quarter, final government data showed on Monday.

Preliminary data in October had also put the third quarter jobless rate at 2.2 percent, confounding expectations firms would cut hiring amid the financial crisis.

Total employment in the city-state grew by 55,700 in July-September, the Manpower Ministry said, slightly lower than the preliminary estimate of 57,800 and below the second quarter figure of 71,400.

The number of job vacancies in September fell to 36,000, a drop of 10 percent from 40,100 in the previous quarter, while nominal earnings rose 5.5 percent year-on-year compared with a gain of 3.1 percent in the second quarter.

Singapore's trade-driven economy fell into its first recession in six years in the third quarter as the global financial crisis reduced demand for Singapore's exports and factory output.

Singapore reports unemployment on a quarterly basis.

[kueytoc]

Rolex appeal fades as recession hit Singapore

Reuters - Tuesday, December 16

By Melanie Lee

SINGAPORE, Dec 16 - Suffering from recession blues and looking to offload that new Rolex watch?

Don't turn to us, say second-hand luxury stores in Singapore, who are being swamped with requests from people desperate to sell their luxury goods.

Traditionally resilient during times of economic downturn, more than 70 second hand shops in the city-state are feeling the chill of recession, as the appetite for expensive goods has fallen sharply despite big discounts.

"Rolex prices have been like a reliable currency in the past, but there are signs that even Rolex is hit by this recession wave," said Ngo Han, an avid watch collector.

"New Rolexes are selling at much lower prices than before and that has trickled down to the second-hand market," Ngo said.

Home to the highest density of millionaires in the world, Singapore is a wealth management centre and a shopping destination for the region's wealthy.

UNAFFORDABLE LUXURIES

Second-hand stores that stock luxury goods, such as brand name bags and flatscreen televisions, experienced a boom in the past few years, as rising incomes and the need to upgrade to keep up with fast-changing fashions created a fertile secondary market for designer wares.

But with the city-state becoming the first Asian country to slip into recession this year, customers are changing their habits.

Where once they would have bought Rolexes or Patek Philippes that can cost over S$10,000, , they now opt for models that cost under S$5,000, , shop owners said.

"Business has gone down about 20 to 30 percent. The interest to buy watches is still there, but whether people can afford to buy is another thing," said Alvin Lye of Monster-Time.

His online store, http://www.monster-time.com, carries second hand watches from Breitling, Audemars Piguet, Cartier and Longines.

During lunch hour in Singapore's financial district, people fill up May Fong's second-hand luxury bag store, but few are buying, even with many of the bags going at a 50 percent discount.

"There is definitely a drop in business. People are more conscious spending, even if it's a bargain," Fong said.

TEMPORARY SETBACKS?

Shops that rent, rather than sell, designer goods, are however reporting a spike in rentals despite the recession, suggesting some locals are still keen to get glamorous goods, albeit temporarily.

"New bags are leased out within seconds posted on the website," ex-policeman Tan Ho Ching, who rents out designer bags for about S$125 a week via his online store http://www.thatbagiwant.com, told local press on Sunday.

The recession's impact on workers whose salaries are commission-based, such as property agents, could be a likely explanation for the drop-off in sales.

"These people tend to earn much more during the boom times, and they are also likely to make up a significant portion of the consumers for these luxury goods," said Alvin Liew, an economist with Standard Chartered in Singapore.

However, some watch enthusiasts said they were holding onto their horological investments, keen to turn a profit once the recession lifts.

A recent Reuters poll said Singapore would be the worst performing emerging Asian economy next year, but would see a recovery together with the rest of the region in 2010 [iD:nHKG10473].

"Watches are better to keep and are better than cash in a recession. They won't drop in value, and after a recession, the value is still there or more," said collector Yeo on online watch forum http://www.swx.com.sg.

[kueytoc]

COE prices down across the board, biggest drop in big car category

Channel NewsAsia - Thursday, December 18

SINGAPORE: COE prices for all categories were down in the latest bidding exercise which ended on Wednesday, with the biggest drop seen in the big car category.

The COE premium for cars more than 1,600cc fell S$3,845 to S$2,656. For small cars 1,600cc and below, the COE price was down S$1,521 at S$6,200.

The COE price for the Open Category, where the certificates are usually used to buy cars, dropped S$1,080 to S$6,509.

The COE premium for goods vehicles and buses went down S$1,211 to S$4,001, while the motorcycle COE dipped a slight S$43 to S$1,059.

Car dealers contacted said they were not surprised by the latest bidding results as they reflect current market sentiment.

That was why the sharp drop in COE price for big cars was expected, with the erosion of consumers’ spending power.

Even with the significant fall, car dealers expect demand for such cars to remain weak in the next two to three months.

Though more consumers may go for smaller cars in these hard times, dealers believe demand will not be strong enough to push the category’s COE price up drastically in the coming bidding exercises.

According to car dealers from Mitsubishi Cars and Tan Chong Motors, showrooms have turned quiet again in recent weeks. This was in stark contrast to the large crowds which showed up when the COE price for small cars dropped to a historic low of S$2 in mid—November. — CNA /ls

[kueytoc]

Even S'pore pets feeling effects of recession...What's NEXT ???

Pets affected by recession

Channel NewsAsia - Sunday, December 21

SINGAPORE: The recession seems to be affecting not just individuals but their pets too. Animal welfare groups report a jump in pet abandonment due to financial difficulties.

Although there is more awareness now on pet responsibility, several animal welfare groups said Christmas is definitely not the jolliest time for them.

The Society for the Prevention of Cruelty to Animals (SPCA) said it received an increase in the number of animals in the lead up to the festive period.

Last month, they received 700 animals, 125 of which were pedigree dogs. And almost two—thirds of that number never gets claimed.

Deirdre Moss, executive officer, SPCA, said: "There seems to be a surplus of pedigree dogs. And they do make up half of our total dogs that we take in each month. There are a lot of people out there who may be buying dogs on the spur of the moment, especially near Christmas time. We want them to be very sure of what they’re taking on."

Compared to previous years, SPCA said it has seen a slight fall in the number of animals abandoned this festive period.

But one animal welfare group, Action for Singapore Dogs, has seen a 20 to 30 per cent increase in the number of people giving up their pets because of financial difficulties.

However, it said the loss of jobs or income is not a good enough reason to give up a pet.

Ricky Yeo, president, Action for Singapore Dogs, said: "If you sit down and think about it rationally, there are always solutions or alternatives. You could probably cut down on luxuries like grooming and treats."

"We certainly hope that people will hold on to their dogs and pets during this time of crisis because, actually, they can be helpful in relieving stress and they’re good companions," Ms Moss added.

The SPCA is also partnering various cinema chains to educate people not to buy pets on impulse.

Some animal welfare groups are calling for higher fines for pet abandonment and more education at the point of purchase. — CNA/vm

[kueytoc]

Shoppers still cashing in...Good Sign ???

Retailers say no significant drop in sales this year—end season

Channel NewsAsia - Monday, December 22

SINGAPORE: Singaporeans appear to be heeding the call to shop this festive season despite the recession. Retailers in both Orchard Road and the suburban areas said they have not seen a significant drop in sales.

Christmas lights and candy canes line Orchard Road and malls are going all out to lure the crowds.

Said one man in the street: "I still maintain the same budget unless I get any bad news for my job. But so far, it is still okay for me."

A CapitaLand spokesperson said some of the group’s malls like Raffles City and Tampines Mall have even seen an increase in shopper traffic.

Another large retailer is also optimistic.

Edward Tan, director, Operations Metro, said: "I expect things to be quite normal. I don’t foresee anything bad until after Chinese New Year."

The growth of sales in the suburbs is not surprising as some shoppers said they have adjusted their budgets and are shopping more in the heartlands.

Said another man in the street: "I used to shop at the Orchard Road area, but now I go to Chinatown as I find it cheaper here."

However, some heartland shopkeepers at Toa Payoh Central reported a drop in sales.

But most also acknowledged that while customers may be more particular about what they buy, the economic downturn has not had a significant impact on their sales so far.

With extended shopping hours and discounts attracting shoppers, not only in Orchard Road but in suburban areas, retailers appear to be winning the battle against the economic downturn, at least for now. — CNA/vm

[speakerphone]

If everyone stop buying, recession can never recover.

[kueytoc]

So wat are U waiting for ?

Let the FAT LADY RINGS !!!

If everyone stop buying, recession can never recover.

[yikai]

Who's fault? America's fault -.-