SINGAPORE in RECESSION !!!

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Singapore growth forecast revised up between —2.5% and —2.0%

Channel NewsAsia - Monday, October 12

Singapore: The economic growth forecast for 2009 has been revised upwards to between —2.5% and —2.0%, the Ministry of Trade and Industry said in a news release Monday.

It also said the Singapore economy expanded by 0.8% year—on—year in the third quarter of 2009 with growth driven by the biomedical and electronics sector and improvements in the trade—related and tourism sectors of the economy on the back of a gradual stabilisation in global economic conditions.

This is the first such growth in five quarters.

Advance estimates by the MTI show that in the third quarter of 2009, Singapore’s GDP expanded by 14.9% on a seasonally—adjusted quarter—on—quarter annualised basis, following a 22.0 per cent expansion in the second quarter of the year.

In year—on—year terms, the economy grew by 0.8%, compared to a 3.2% contraction in the preceding quarter.

MTI noted that a clear but modest recovery is underway globally, at least for the next three or four quarters.

However it also cautioned that economic activity will probably remain below pre—crisis levels because a sustained recovery in private consumption and investment in the developed economies is needed to support growth momentum into the second half of 2010.

It added that Singapore’s economic prospects in 2010 will be closely tied to the conditions in the external environmen with trade—dependent sectors more likely to continue to benefit from a gradual resumption in global and regional trade flows in 2010.

In its latest economic report card Singapore’s manufacturing sector showed an expansion by 35% on a seasonally—adjusted quarter—on—quarter annualised basis, on the back of the previous quarter’s spike of 59%.

This increase was primarily due to demand in higher value active pharmaceutical ingredients in the biomedical manufacturing cluster, as well as greater electronics restocking activities as consumers bought more electronic products.

However, the construction sector declined by 0.6% compared to an expansion of 33% in the previous quarter as construction for industrial building projects slowed down.

The services producing industries expanded by 9.5% on a seasonally—adjusted quarter—on—quarter annualised basis in the third quarter of 2009, compared to 8.3% in the preceding quarter.

The trade—related and tourism sectors also improved while financial services sector posted modest growth.

CNA/sf

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RBS Coutts sees staff exodus in Singapore

Reuters - Wednesday, October 14

By Saeed Azhar

SINGAPORE - More than a quarter of the staff at the Singapore office of private bank RBS Coutts have quit in a mass resignation and some are joining Swiss rival BSI.

The defections could be a sign that job-hopping is beginning to pick up in Asia's competitive wealth-management market, which is recovering from last year's market meltdown.

RBS Coutts, part of Royal Bank of Scotland Group Plc, said on Tuesday "a little over 70 people" had resigned from the bank.

The departures come a few months after Hanspeter Brunner, former co-CEO of RBS Coutts, and Raj Sriram, head of its South Asia unit, left the wealth manager, sources said.

Both executives are joining BSI and some staff will join them, the sources told Reuters. The sources did not want to be identified because the hirings at BSI were not public. BSI was not available for comment.

Lugano-based BSI, a unit of Italy's insurance group Generali <GASI.MI>, currently has around 50 people in its Singapore branch and a smaller number in Hong Kong where it has representative office status, a source said.

BSI's Singapore chief executive Nicola Battalora told Reuters in an interview in May that BSI was looking to expand in Asia and hire bankers.

Factors contributing to the exodus of RBS Coutts employees include moves by parent RBS to defer staff bonuses as well as concerns about asset sales by RBS in Asia.

"It's about the money. It's always about the money in private banking," the source said.

RBS was rescued by the British government last year and its bonus payments to staff have been under scrutiny.

An RBS Coutts spokesman in Singapore said the staff who left were about 28 percent of the Singapore staff and 15 percent of the wealth manager's Asia staff. He did not say why the staff left.

EXPANSION

The RBS Coutts spokesman said the bank plans to hire 200 more staff in Asia over the next five years and aims to double its assets in the same period. Currently it has a staff of 500 and manages 17 billion Swiss francs in Asia.

UBS and Citigroup are ranked as the top two players in Asia.

Private banks and boutique firms are vying to tap the growth of millionaires in Asia. High net-worth individuals' wealth in Asia-Pacific is seen climbing 8.8 percent a year for the next 10 years, according to Merrill Lynch/Capgemini.

One industry expert said the exodus from RBS Coutts reflected the state of the private banking industry in Asia.

"Sadly the Asian private bank market remains a market that depends on raiding existing mature business and mature relationship managers from other banks," said Roman Scott, managing director of private equity firm Calamander Capital in Singapore.

"There is continued dire shortage of experienced, mature RMs ."

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RBS Coutts eyes more wealth managers

AFP - Wednesday, October 14

SINGAPORE (AFP) - – RBS Coutts, the private arm of the Royal Bank of Scotland, said on Tuesday it plans to hire 200 wealth managers in Asia as it tries to latch on to an expected explosion of millionaires in the region.

This follows a report that a third of its staff in Singapore had left en mass, with many believed to have gone because of rows over pay.

The Financial Times said on Tuesday that the resignations included about 20 key managers as well as around 50 support staff, some of whom were handling wealthy Indian and Indonesian clients.

But the bank said it would be taking on the 200 new wealth managers over the next five years and would be aiming to double its business the region.

RBS Coutts' hiring plans came as a report was released showing the Asia-Pacific super-rich population was set to pick up as markets such as China and India grow.

"In Asia, where we see tremendous growth in private wealth, RBS Coutts is very much in a growth mode," a spokesman said in a statement to AFP.

The spokesman confirmed the FT report but said the departures account for less than 15 percent of RBS Coutts' regional headcount and there had been no impact on its business.

"Staff volatility in the private banking industry is not unusual, especially in Asia where it is still relatively new compared to the more mature state of private banking in Europe," the RBS Coutts spokesman said.

"Given the improving economy, there have been increased recruitment activities in many sectors, including private banking."

RBS Coutts is owned by RBS which is majority owned by Britain's taxpayers after being bailed out in the global financial crisis.

The Asia-Pacific Wealth Report on Tuesday said the number of high networth individuals (HNWIs) in the region fell 14.2 percent to 2.4 million in 2008 due to the global economic downturn.

It also said the wealth of the HNWIs -- people with investable assets of at least 1 million US dollars -- fell 22.3 percent to 7.4 trillion US dollars.

But the study -- by Merrill Lynch Wealth Management and financial consultancy Capgemini -- said the numbers are expected to pick up as conditions improve.

The combined wealth of Asia Pacific HNWIs is forecast to grow 8.8 percent annually until 2018, faster than the global average of 7.1 percent, the report said.

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Universal Studios theme—park at Sentosa to offer 18 unique rides and attractions

Channel NewsAsia - Wednesday, October 21

Singapore: Island resort Sentosa will soon be home to the world’s tallest duel roller—coaster ride and movie stars such as Marilyn Monroe, Shrek and the motley mob of Alex, Marty, Melman and Gloria last spotted in Madagascar,the movie.

The Universal Studios theme—park which will be housed on the 49 hectares Resorts World at Sentosa, revealed Tuesday its two dozen attractions, including 18 rides and attractions specially created or adapted for Singapore.

“Universal Studios Singapore will be its own unique experience and family destination with many new rides, shows and themes that can’t be found at other Universal Studios parks around the world,†said Tom Williams, chairman and CEO, Universal Parks & Resorts.

Speaking at Tuesday’s unveiling of some of the theme—park’s attractions, Williams said attention was paid to location—specific creatives and designs so as to offer both first—time and devoted Universal Studios visitors, an exciting, different and memorable experience.

The theme—park will feature seven zones, each with its own iconic food outlets and entertainment attractions.

Tied—in to movie favourites, are the Madagascar and Far Far Away zones, featuring attractions for both young and old.

Visitors can explore Shrek’s swamp home, a castle and party at a Knight Club, or ’move it, move it’ with wacky King Julien at a beach party after outwitting the Foosa in an original, one—of—a—kind immersive river ride that should be as wild as the lemur tribe of Madagascar.

Sci—fi buffs will have a city of their own and be able to join in the Human vs Cylons battle on the Battlestar Galactica dueling coasters, the tallest of its kind in the world. Another battle in this zone is the highly—anticipated Transformers ride which debuts at Universal Studios Singapore before heading out to the US theme—park.

As for adventure—seekers, they can trip to the 1930’s Golden Age of Egyptian Exploration to discover the Sphinx, Pharaoh’s tombs and mummies in the Revenge of the Mummy attraction, or take on the Lost World zone inhabited by dinosaurs at the redesigned Jurassic Park Rapids Adventure and Waterworld, with death defying stunts.

At the Hollywood zone, visitors can expect Broadway—style theatre modelled after the famous Hollywood Pantages Theatre and walk down Hollywood Boulevard complete with the famous Walk of Fame.

Without hopping on a jet, visitors will be transported to New York for a slice of the Big Apple, from NY—style pizza to movie—set scenes, including a special effects stage with Steven Spielberg who offers behind—the—scenes peeks and Stage 28 for star wannabes who get a chance to be part of a movie production.

“Asians love movies and we are proud to introduce the region’s first and only Universal Studios theme park" said Tan Hee Teck, CEO of Resorts World Sentosa.

According to Tan, the project is in the final stages of construction, and Universal Studios Singapore will be one of the biggest and most exciting theme—parks in the world.

Apart from Asia’s only Universal Studios theme park which will have 30 restaurants and food carts, as well as 20 retail stores and carts supporting the various attractions, Resorts World boasts the world’s largest Marine Life Park, a destination spa — ESPA and a designer casino.

Resorts World at Sentosa is slated to have its soft opening in early 2010.

CNA/sf

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Enhance productivity and skills to protect jobs: Tharman

Channel NewsAsia - Tuesday, October 20

SINGAPORE: Finance Minister Tharman Shanmugaratnam told Parliament on Monday that when the Jobs Credit Scheme ends, the focus will be on building skills and thus wages, across all levels.

He has also indicated that there will be no major shift from the expansionary fiscal stance of this year’s Budget although it is too early to say what Singapore’s fiscal position will be.

The Jobs Credit Scheme, introduced as part of the government’s Resilience Package earlier this year has helped to mitigate the scale of Singapore’s economic decline and job losses.

Despite the sharp fall in the country’s GDP, unemployment went up moderately and local employment actually increased by 7,000.

A Manpower Ministry survey conducted from May to July 2009 also showed that some three in four companies had postponed or reduced layoffs.

Under the scheme, employers receive a 12 per cent cash grant on the first S$2,500 of each month’s wages for each employee on their CPF payroll, up till December 2009.

After that, two additional Jobs Credit payments will be based on six per cent and four per cent of the salary.

Even though the scheme has been extended another six months, MPs were concerned about the impact it will have on workers — especially those 45 years and above — when it does end.

MP for West Coast GRC, Ho Geok Choo, said: "Would the eventual cessation of Jobs Credit scheme cause employers to stop making new hires? And would it also lead to less emphasis on training and productivity?"

Finance Minister Tharman Shanmugaratnam noted that the focus has shifted from broad relief measures to those targeted at restructuring, and preparing for longer term growth.

He said: "This means measures that all companies can enjoy if they are putting into place productivity—enhancing measures or measures that increase innovative capacity, as well as measures some companies will enjoy more than others — because they are the ones that are growing fastest, investing more and are likely to lead the economy not just out of recession but are likely to lead the economy and for growth over the next five years. So we’ll be more discriminating, we’ll be more targeted."

But he added it is not just helping companies to create high—end jobs.

Mr Tharman said: "It means improving our worker’s capabilities up and down the line — from the simplest jobs to the most complex jobs. Every worker can improve, every job can yield higher productivity and therefore higher pay. So whether it’s a mature worker or younger worker, we’ve got to address this across the board."

The Economic Strategies Committee, formed in May this year to look at how to position Singapore for sustained growth in the long term, is looking into this issue of enhancing workers’ productivity to increase wages.

The committee will release its key recommendations in January and its full report by mid—2010.

CNA/vm

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Executive hiring in Asia improves sharply - Hudson

Reuters - Thursday, October 22

By Susan Fenton

HONG KONG, Oct 22 - Job prospects for executives at multinationals in Greater China and Singapore have improved sharply in the past three months amid growing optimism that Asia's recovery from the global recession will be sustainable, a quarterly survey showed on Thursday.

"Asia is the first region to emerge from the global recession, causing employers to revise their hiring expectations sharply upwards," said Mike Game, chief executive of executive recruiters Hudson Asia.

In China, hiring prospects picked up for the first time in more than a year. The proportion of employers in China, Hong Kong and Singapore who plan to cut headcounts within three months is less than half that in a similar survey taken in May. The latest survey was taken in August.

Hiring expectations have increased most in Hong Kong, where 35 percent of companies say they expect to recruit staff within three months, up from 22 percent in May. In media, public relations and advertising, 69 percent of companies said they would be hiring, compared with 28 percent in the previous survey.

In China, 39 percent of employers said they planned to add staff, up from 27 percent in the May survey, with companies in banking and finance most bullish about hiring.

Hong Kong and Singapore pulled out of recession in the second quarter while China on Thursday announced an 8.9 percent surge in third-quarter GDP, putting it easily within reach of its 8 percent growth target for this year, economists say. [iD:nSP527740]

WAGE GROWTH

Salaries are set to accelerate across Asia next year as business conditions improve: a survey by U.S. HR consultants Hewitt Consultants forecasts salaries in China will jump 6.7 percent next year after rising only 4.5 percent this year. Pay rises in Hong Kong and Singapore will be more modest at just under 3 percent. [iD:nHKG252067]

In Singapore, 34 percent of companies in the Hudson survey said they would be hiring soon, up from 26 percent in the May survey, and only 5 percent said they would cut staff, compared with 14 percent in May. The healthcare and life sciences sector continues to offer the best hiring opportunities in Singapore with 44 percent of companies preparing to add headcount, while the consumer sector has seen a slight fall in hiring expectations since May.

Singapore employers were most willing to hire candidates who had been unemployed for more than a year, or an extended period of time, while employers in China were least willing to do so, according to Hudson, part of Chicago-based Hudson Highland Group Inc <HHGP.O>.

Previous experience and specialist skills were cited as the main reasons to hire the long-term unemployed across the region but, in China, stopping work to obtain a higher qualification was also seen as a valid reason.

The quarterly survey covered responses from nearly 2,000 managers at multinational companies across industries in the three markets.

susan.fenton@thomsonreuters.com; +852 2843 6367; Reuters Messaging: susan.fenton.thomsonreuters.com@reuters.net

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Sharp rise in hiring expectations among firms: recruitment survey

Channel NewsAsia - Friday, October 23

SINGAPORE: Hiring expectations among Singapore companies have increased. A survey by recruitment firm Hudson, found that 34 per cent of firms polled expect to increase headcount in the last three months of this year.

But it also warned that companies may turn cautious again when economic stimulus packages end.

More jobs are expected as employers start to hire aggressively again, all thanks to Singapore’s economic engine which is chugging again.

Initiatives like Jobs Credit have helped. However, the government has announced that the wage subsidy scheme designed to stem unemployment will end in June next year. Hudson said companies might become cautious again then.

Gina Mclellan, country manager, Hudson Singapore, said: "That would be a concern towards the end of next year when the package comes to completion. This also happens internationally where a number of stimulus packages will actually come to an end.

"Some as early as quarter one and then it would take a period for the market to self—adjust, to come to terms to the fact that they don’t have the savings anymore. So, I think there will be a period of uncertainty to see how the global economy works with these new constraints."

According to the Hudson Report, the higher hiring expectations cuts across key business sectors. Banking and Financial Services is the most bullish, with confidence returning to the sector, after being battered by the financial meltdown.

Going forward, Hudson said the top HR priorities are talent development and retention.

HR practitioners said reinstating cutbacks during the recession would be an important incentive.

David Ang, executive director, Singapore Human Resources Institute, said: "If companies are doing well and are making profits and they’ve been able to manage cost and reduce their cost because of sacrifices from the employee, then in addition to all the things which I’ve mentioned earlier in terms of cost management as well as in terms of productivity programmes, I think it’s good to return some of these sacrifices back to the employee, and encourage them to stay on and help with the growth of the organisation."

The Hudson Report surveyed some 600 executives in August.

CNA/vm

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S’pore workers can expect 3% salary rise next year: survey

Channel NewsAsia - Thursday, November 5

SINGAPORE: Employees in Singapore can expect salary increases of three per cent next year. That’s up from this year’s two per cent, said outplacement firm, ECA International.

Its latest Salary Trends Survey said within the region, salary increases remain highest in China, India, Indonesia and Vietnam.

Pay increases will be lowest in Japan.

ECA International’s Regional Director for Asia, Lee Quane, said Singapore’s forecast increase, like Hong Kong and Taiwan’s, are lower than the regional average.

This is due to the fact that these are developed economies with low inflation rates.

The survey found that salary increases within the region are predicted to average at five per cent in 2010, almost twice as high as this year.

Mr Quane said these forecasts are an indicator that companies operating within the region are much more confident about economic conditions than a year ago.

They suggest that many employers are actively making up for the fact that employees typically experienced little or no salary increase this year. — 938LIVE/vm

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Wellness Village spa closure: Who’ll foot those credit card bills now?

Channel NewsAsia - Thursday, November 12

SINGAPORE: Who foots the bill for credit card payments — the bank or cardholders — when a service provider makes a sudden disappearance?

The question is being asked after the shutdown of spa operator Wellness Village, which was reported in TODAY on Tuesday.

One customer was told by a former employee that the spa was still selling packages, some as costly as $10,000, up to the weekend before it closed down.

The four—year—old spa is also believed to have up to 7,000 customers and they are wondering about their credit card liability.

"I’m still paying off my instalment plan I paid with my credit card," said a customer who only wanted to be identified as Ms Tan. "Now that this has happened, will the bank take some liability?"

When contacted, the Association of Banks in Singapore (ABS) said the credit—issuing bank has already paid for the customers’ purchases and the amount needs to be settled.

ABS said customers should take their grievances to the spa owner. Credit card holders can choose to pay in full or by instalments at some establishments.

"Regardless, the bank has a contractual obligation to pay the merchant in full once the charge slip is signed," UOB regional and Singapore head for cards and payment products Gan Ai Im also told MediaCorp.

"The card member, on the other hand, is obliged to make full settlement of all charges incurred on the card to the bank."

Wellness Village customers can call their card—issuing banks, however, to investigate or dispute the charges.

Said Citi Singapore vice—president of corporate affairs Caren Lee: "We understand the concerns of the customers and empathise with them in this situation."

"To support the investigation, the customer will need to provide supporting documents, including the purchase agreement with the merchant."

Consumers Association of Singapore executive director Seah Seng Choon said it has received 138 complaints from former customers since the spa’s closure made headlines.

He said the "first thing the consumer needs to do is to file a claim against the business at the Small Claims Tribunal" to obtain an order demanding the business pays whatever amount is awarded.

This applies to firms that are still "live", such as Wellness Village, as indicated by checks with the Accounting and Corporate Regulatory Authority.

If the amount is not settled, the consumer can make a writ of seizure or other legal action, said Mr Seah. But that could cost more than the amount some customers would forfeit.

Lawyer Doris Chia from David Lim & Partners pointed to another alternative: For customers to "band together" and wind up the company. An official receiver will then look into the accounts and affairs of the company to see if money can be clawed back.

Consumers can also file a police complaint. "If directors of the company continued to trade or accept more payments for packages even though they know there was no chance the company will be able to honour the packages, this ... may render the directors personally liable," said Ms Chia.

TODAY/so

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Measures to cool property market appear to have worked: Mah

Channel NewsAsia - 2 hours 7 minutes ago

SINGAPORE: The government said on Monday the measures taken to cool the property market appear to have had the desired effect.

Speaking in Parliament, National Development Minister Mah Bow Tan noted that since the measures were introduced, the sale of private homes fell 37 per cent on—month in September, and another 29 per cent in October.

In September, the government removed the Interest Absorption Scheme and Interest—Only Loans to temper the exuberance in the property market and to prevent a bubble from forming.

The government has also announced it will resume land sales under the confirmed list of its land sales programme in the first half of 2010.

Mr Mah said the government will continue to monitor the property market closely to assess the market’s response to the measures introduced before deciding whether further measures are needed.

"Our key interest is to ensure that property prices and rentals remain competitive and move in line with economic fundamentals. We want to curb erratic spikes in prices due to excessive speculation, inaccurate information or market manipulation," the national development minister said.

"But we must let market forces determine prices, based on genuine demand from home—buyers and investors."

Mr Mah added that the measures introduced in September have also helped to control speculative activity. Government records so far indicate that the number of sub—sales today is not as high as it was during the height of the property market boom.

Sub—sales are closely watched as a gauge of speculative activity in the property market.

"The two schemes that we have removed or disallowed are rather targeted, targeted at the speculators, for example, who would make use of these schemes to flip or turn over properties quite rapidly. We have taken a calibrated approach to the property market. The idea ... is to cool the market, not crash it," Mr Mah said.

The minister said the government may remove the cooling measures in future if the property market stabilises or weakens, but it is too early to say when that might happen.

Analysts MediaCorp spoke to said they expect the property market to remain subdued in coming months.

Nicholas Mak, adjunct lecturer for Business & Environment at Ngee Ann Polytechnic, said: "(The cooling measures) have a psychological effect on speculators, removing many of them from the market. Another factor is that a large part of sale volume we experienced in the first half and later part of this year is mainly due to the sale of 99—year mass market condominiums. Developers are running down on inventory on such stock. As a result, home sales will start to slow down."

In addition, fewer launches are expected in the year—end period.

Ang Choon Beng, director and head of research services at Cushman & Wakefield, said: "I think the November and December months will be quiet because it’s the holiday season. Most developers will only start launching new projects after the holiday season is over.

"The current situation is that developers are under no pressure to sell because they have substantially sold down their inventory. They have already sold down about 45% of total upcoming supply. So developers are not under any sort of pressure."

But analysts do not expect prices to trend down yet.

"There’s excess liquidity in the market as a result of global low interest rates. Because Singapore is a transparent and open market, some of this money may come in. That may be an underlying factor that will support the property market in Singapore," said Mr Ang.

Analysts expect prices to rise moderately, at about 5 to 10 per cent in the year ahead. The bulk of the increase is expected to take place in the mid to higher end of the market, as prices of mass market homes have already reached a high.

CNA/so/ir

HDB projects 10,000—12,000 new flats needed annually over next 5 years

Channel NewsAsia - Tuesday, November 24

SINGAPORE: The Housing & Development Board (HDB) has projected it will need to offer between 10,000 and 12,000 new flats per annum over the next five years to meet the housing demand in Singapore.

Speaking in Parliament on Monday, National Development Minister Mah Bow Tan re—assured that there will be enough affordable flats for first time buyers.

This year, at least 13,500 flats will be offered in total — enough to fill at least half of Bukit Panjang or Pasir Ris, said Mr Mah.

In fact, the ministry was able to ramp up supply quickly at mid—year when demand rebounded.

The minister noted that despite the high demand for housing, expectations of first—time buyers have changed over the years, with many demanding for flats in prime estates or on higher floors.

"I cannot build flats only in the mature estates, only in the city area. I cannot build flats that are only on high floors."

"We were living in a three—room flat in Kim Keat Avenue — eight of us (shared) three bedrooms, one toilet and bathroom," Mr Mah said of his past experience. "It was basic but it was like a palace to use because I had just come from a one—room in Chinatown.

Mr Mah explained that the five—year projection serves as a guide for the Build—To—Order system — which is more flexible and can then respond to changes in demand.

With more foreigners coming to live and work in Singapore, Members of Parliament (MPs) also asked whether this new group was adding further to the demand pressure for flats.

"PRs are not eligible for buying new flats, even in the resale market, quite a lot of them actually rent. They are under—represented as far as purchases are concerned," explained the minister.

Mr Mah also gave an idea of how flats are priced, saying that they are not based on cost plus profit, but the flat’s market price minus the subsidy.

Hence, the cost of a flat could vary from S$230,000 for a room flat in Punggol to a S$530,000 for a five—room flat in Tiong Bahru.

CNA/yb

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Temasek announces major bond offer plan

AFP - Tuesday, November 24

SINGAPORE (AFP) - – State-linked Singapore investment firm Temasek Holdings on Tuesday said it plans to raise 600 million Singapore dollars (433 million US) from new bond offerings.

The latest news follows an announcement in October that the firm would raise 1.5 billion US dollars through a 10-year bond offer under a capital raising programme worth 5.0 billion US dollars.

Temasek said in a statement the bond offerings, to be made in two tranches of 300 million dollars each, would be issued by its wholly owned subsidiary Temasek Financial.

"The issuer intends to provide the net proceeds from the offering to Temasek and its investment holding companies to fund their ordinary course of business," the investment vehicle said in a statement.

"The notes will be fully and unconditionally guaranteed by Temasek," it said.

Temasek said one tranche of the offering would mature in 2029 while the other was due in 2039.

The firm is one of the world's largest sovereign wealth funds and had a global portfolio worth 130 billion Singapore dollars as of March, including stakes in companies such as Singapore Airlines and Standard Chartered bank.

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An Essential Guide To Buying Your First Car

By iFAST Editorial Team

We've all heard about how buying a car is not one of the smartest financial moves to make. A car is after all, a depreciating asset. But we can't deny that having a car brings other intangible benefits - convenience, accessibility, freedom etc.

Damien Fong, from Singcapital Pte Ltd., tells potential car buyers what they need to know before signing on the dotted line for a new car purchase, and offers tips on how to source for a suitable car loan.

iFAST: What are the main factors to take into consideration when deciding whether to purchase a car?

DF: Many car owners around in the world, and especially in Singapore, do not have a full understanding of the financial implications of one's car purchase. In Singapore, it is important for a potential car buyer to note that there are some very specific factors that affect the value of a car and the overall cost of ownership. As Singapore is still one of the most expensive places in the world to buy and maintain a car, it is well worth one's time to understand the basic elements that make up the costs of owning a vehicle here.

OWNING A VEHICLE IN SINGAPORE

The 2 main factors that impact the cost of car ownership in Singapore are:

The vehicle tax regime including import duties, additional registration fees (ARF) and road tax.The Vehicle Quota System which limits the vehicle population growth in Singapore to approximately 3% per annum. The tool which is used to limit the number of cars registered in Singapore is the Certificate of Entitlement or COE. Each vehicle registered in Singapore must have an accompanying COE which is "attached" to the vehicle throughout the vehicle's lifespan. For more information on the Vehicle Quota System and COEs, please visit www.lta.gov.sg (The Land Transport Authority) and www.onemotoring.com.sg.

RECURRING MAINTENANCE COSTS

In addition to incurring the cost of acquiring a vehicle, there are other costs associated with keeping the vehicle on the road. Here are some of those costs:

COMMON MISCONCEPTIONS

One of the most common misconceptions on the affordability of a car is the "low monthly installment" syndrome. This happens when prospective buyers are enticed into buying a car on the premise that the monthly installment is low. However, many consumers do not factor in other "costs" and can end up in a horrendous situation from a financial perspective.

Many car buyers also do not take enough time to consider their length of ownership and therefore do not make the best purchase decisions from a financial perspective. Unlike a property, a car is usually a liability as its value depreciates the moment you purchase the car. Therefore, when buying a car, it is important to take time to consider how much it will cost you overall, your intended ownership period and of course, your motoring needs.

iFAST: If an individual were to purchase a car, what would be the maximum percentage of the individual's salary that should be allocated for the monthly installments and other related expenses?

DF: To work out your Income and Expenses when deciding on a car purchase, one will need to work out his/her Debt Servicing Ratio (DSR) which is often used by banks to assess whether a loan application can be approved. DSR is the percentage of the borrower's total monthly financial commitment (including car loan, home loan repayment, and other financial commitments such as unsecured borrowing, etc) against his monthly income and it will determine the loan quantum to be granted. The acceptable DSR varies from bank to bank, but is usually between the region of 40% to 50%.

SOURCING FOR A SUITABLE CAR LOAN

There are three basic factors to think about when sourcing for a new car loan: interest rate, loan principal and loan period. Knowing these three items will enable you to understand how much loan you are able to obtain. Using these to make your loan calculation will help you establish your budget for making the monthly payments.

It will be good to bear in mind that most lenders will want you to take out as much loan as you can possibly afford, since they will make more money, the larger the loan amount is. Therefore, always check the terms and conditions for the car loan before you commit to a loan. Below are the key items one needs to take note of, when it comes to car loans.

The Loan Principal

Loan principal is a term used in finance that refers to the original amount of the debt or the original amount of money borrowed. Your total interest charges at the end of the loan period depend on the amount of the loan principal and the loan period. The higher the principal amount you borrow, the more money you will ultimately be paying back over the course of the loan.

Interest Rate

The interest rate is usually expressed in percentage terms and is referred to as the amount of money charged outside the loan principal amount.

There are two common car loan interest schemes, i.e. the flat interest rate and the monthly rest schemes. Flat inter¬est charges are also known as "flat add-on rate". The interest rate is fixed throughout the loan period and it uses simple interest calculation. This means the total interest payable for the whole loan period is already added into the principal loan amount at the beginning. Borrowers pay equal monthly installments over the period of the loan. Currently, most car loans in Singapore are based on this scheme.

Monthly rest schemes are repayment schemes with floating interest rates. These rates are usually pegged at a certain percentage below or above a benchmark rate, such as the lender's prime lending rate or board rates. The interest is calculated on a monthly rest basis, meaning that the principal amount is reduced every month as the monthly installment is paid. The monthly instalments are a fixed amount, but the reduction in the principal and the interest payment vary according to changes in the interest rate.

Loan Period

The loan period refers to the life cycle of the loan. The longer the loan, the more expensive the loan will be.

Car loan calculation is an important part of sourcing for the right car loan. You can determine how much your loan is going to cost, by utilising good car loan calculation.

By regulation, car loans have a maximum repayment period of 10 years and a financing limit of 100% of the car purchase price or market value, including COE, whichever is lower. The loan period added to the age of the car cannot exceed 10 years.

Terms and Conditions - Default

For hire purchase loans, if you default on the monthly installments, the lender has the right to repossess the vehicle. Upon the sale of the vehicle, you have to pay for the shortfall between the sales proceeds and the loan outstanding, including the costs arising from the repossession.

Late Fees and Penalties

Different lenders charge different fees for late payment of installments. Make sure you check out all these fees before you commit to the loan.

iFAST Central provides services to more than 50 financial advisory companies, exempt financial advisers and financial institutions, and over 2,500 financial adviser representatives. Damien Fong is Financial Advisor Director at Singcapital Pte Ltd, a financial advisory company.

[kueytoc]

Huh-ohhh !!!

Singapore's DBS says has $1.28 bln Dubai exposure

Reuters - Tuesday, December 1

By Kevin Lim and Neil Chatterjee

* DBS believes Dubai exposure is manageable

* Only credit under standstill notice is $400 mln loan

* DBS shares closed 3 pct lower on uncertainty over exposure

* Singapore c.bank says bank sector exposure under 1 pct

SINGAPORE, Nov 30 - DBS Group <DBSM.SI>, Southeast Asia's top lender, said on Monday its total exposure to Dubai is about S$1.8 billion , after worries about Middle Eastern debt drove its stock down 3 percent.

DBS, seen by analysts as the most exposed among Singapore lenders to Dubai's debt troubles, said its exposure to the whole Middle East accounted for around two percent of its balance sheet, including its 50 percent-owned Islamic Bank of Asia.

"The bank believes that the situation is manageable as a substantial portion of this is to Dubai-owned companies operating in Asia that are sound, such as Labroy and South Beach, which is collateralised," the bank said in a statement late on Monday.

Investors are waiting for clarity from Dubai on billions in debt repayments after it raised fears of a second bout of financial turmoil last week when it asked for a six-month freeze on debt issued by Dubai World [DBWLD.UL] and Nakheel [NAKHD.UL].

DBS said the only credit captured under the standstill notice is a S$558 million bilateral loan to Dubai World Finance, representing 0.2 percent of its total balance sheet. It said it has no exposure to property developer Nakheel.

DBS shares closed 2.98 percent down on Monday, after a Singapore market holiday on Friday, underperforming a 1.1 percent drop in the broader index <.FTSTI>.

DBS told Reuters the $1.28 billion included exposure from the Islamic Bank of Asia, which focuses on banking in the Middle East and Asia from its offices in Singapore and Bahrain. DBS owns about 50 percent of Islamic Bank of Asia.

DBS, 28 percent owned by state investor Temasek [TEM.UL], derives the bulk of its revenue from Singapore and Hong Kong. But in its earnings statement for the second quarter ended June 2009, it blamed an increase in non-performing loans to "exposures to shipping and Middle East corporates and institutions".

"The exposures to Dubai World debt are relatively limited, and are less of a concern compared to the spillover effects for related entities, corporates in the UAE region and potential refinancing issues," said JPMorgan in a report on global banks.

DBS has partly financed, together with UOB, OCBC, HSBC and Sumitomo Mitsui, an S$800 million loan for the South Beach property development project in Singapore, a JV between City Developments <CTDL.SI>, Dubai World and developer El-Ad.

Singapore's second biggest lender Oversea-Chinese Banking Corp <OCBC.SI> said earlier on Monday it has no exposure to Dubai World while United Overseas Bank <UOBH.SI> said its exposure to Dubai was insignificant.

OCBC shares eased 0.36 percent while UOB fell 0.95 percent.

Singapore's central bank said on Monday the total gross exposure of the country's banking sector to the United Arab Emirates was well below 1 percent of total banking assets.

The Monetary Authority of Singapore also said in a statement that it does not expect the developments in Dubai to adversely affect the financial stability of Singapore, a growing wealth management centre and currency trading hub.

[kueytoc]

S’pore recovering but will take time to get back to pre—crisis vibrancy, says PM Lee

Channel NewsAsia - Friday, January 15

HANOI, Vietnam : Singapore is slowly recovering after a grey year in 2009, but it will take time to get back to pre—crisis vibrancy.

Prime Minister Lee Hsien Loong made this point when addressing a group of Singaporeans, as part of his official trip to Vietnam.

And he said it was important to cultivate ties with neighbours, because Singapore did best when they prospered, as it prospered along with them.

Vietnam is an important economic partner of Singapore and many business people at the gathering said they are there as serious investors, and are in for the long term.

This is despite some difficulties doing business there.

"I would say primarily it would be language, and also because the infrastructure is not there, and for my industry in particular, (which is) supplies," Esther Wee, managing director of Halia Restaurant.

Still, Mr Lee said overseas Singaporeans are important to the overall economy.

"Through your presence overseas, you will help us to prosper, and to become a robust and strong economy in the new phase. We cannot become robust and strong by ourselves. It depends on our neighbours, it depends on our outreach and our capabilities," said PM Lee.

There are currently about 150 Singaporeans working in Hanoi, in areas as diverse as property development, information technology and food & beverage.

Meanwhile, Singapore and Vietnamese tourism officials are working to develop the cruise tourism industry in Southeast Asia.

Tourism officials said Southeast Asia currently enjoys about 7 per cent of the worldwide cruise market, so there is a lot of untapped potential.

One idea is to develop a Southeast Asian cruise market — which could see cruises taking off from Singapore, going up to Malaysia, then Thailand, along several sites in Vietnam and end off in Hong Kong.

"Southeast Asia lends itself very well as a cruise destination, given our deep waters, our year round tropical climate, and the diverse cultures and sightseeing opportunities in this region," said Margaret Teo, Assistant Chief Executive, Development Group, Singapore Tourism Board.

But before that can take off, governments must work together to market the region as a whole.

And infrastructure such as cruise terminals and good roads to tourist sites will have to be built.

CNA /ls

[kueytoc]

Teething problems, arrests at RWS casino : Resorts World Sentosa expects visitor numbers to its casino to dip from Wed

Channel NewsAsia - Wednesday, February 17

SINGAPORE: Resorts World Sentosa expects visitor numbers to its casino to dip significantly from Wednesday when the public holidays end.

This, after an overwhelming response to its opening, during the first three days of the Lunar New Year.

The casino has attracted some 41,000 people so far.

Police also made its first arrests when two foreign nationals, believed to be Mongolians, tried to use a false passport to gain entry.

Some 6,300 guests tried their luck at the casino during the last day of the Lunar New Year public holidays.

The more popular games included baccarat, roulette, pontoon and blackjack.

Although it was the end of the holiday period, some punters said they will be back.

Teething problems also emerged during the first three days of operations.

Long waits, overwhelmed facilities and confusion over dress code were some of the complaints received.

Resorts World Sentosa said there have been initial problems, and will take feedback from guests seriously.

Krist Boo, vice president, Communication, Resorts World Sentosa, said: "We had to turn away some of the customers on the first day because they came in slippers. So, the dress code for the casino as with a lot of world—class casino, is no slippers, no singlets and no shorts.

“So, we realised that some of the customers are not aware that the signs have been posted outside the casino. Yesterday, we started putting up more signage to inform the customers to come in proper attire."

With many new dealers on the floor, gamblers also questioned their competency.

Said one visitor to the casino: "It’s very slow, I don’t see a lot of Singaporeans also. They are still at a learning stage and they made a number of mistakes."

Ms Boo added: "Mainly our croupiers are new to the industry. They started training as early as August last year so they have been training for quite a while. But nothing beats the real thing. So, when the casino opens, many are learning on the job."

Resorts World Sentosa said it would take some time for the croupiers to gain experience and they are working hard to put things right.

CNA/vm

Dolphins for Resorts World stranded in the Philippines

Channel NewsAsia - 2 hours 9 minutes ago

SINGAPORE : Eighteen dolphins — enroute to the Marine Life Park at Resorts World Sentosa (RWS) — are reportedly stranded in the Philippines.

According to the Philippine Daily Inquirer, the bottlenose dolphins are now at the Ocean Adventure marine park at Subic Bay.

The February 5 report said that the marine mammals, imported from the Solomon Islands, were to have been sent to Singapore by the end of last year. But they are still in the care of Subic Bay Marine Exploratorium, the company contracted to train them.

The delay, according to the report, is because the facilities to house them in Singapore are not finished. When contacted, RWS spokesman Robin Goh told MediaCorp that "construction of the Marine Life Park is on schedule and is slated for an opening after 2010".

Bottlenose dolphins, one of the most common in the world, are listed in Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Cites) and their trade is regulated. Activists have questioned the need to import wild dolphins. The Society for the Prevention of Cruelty to Animals (SPCA) has posted the Philippine newspaper report on its Facebook page.

Executive officer Deirdre Moss said the society "objects to the keeping of dolphins in captivity, as they are usually caught/kept for the purpose of training to entertain/amuse the public" and in doing so, they are "also forced to adapt to an alternative lifestyle in a man—made structure".

Mr Goh said animals acquired for its Marine Life Park are in accordance with the Cites agreement. "In the meantime, the dolphins are in good hands and being looked after according to international standards," he added.

— TODAY/il

[kueytoc]

MM Lee warns of dangers of slow growth if productivity does not increase

Channel NewsAsia - Friday, February 19

SINGAPORE: The future is promising for Singaporeans, but challenges such as increasing productivity and raising skills across the board need to be tackled in the next five years, Minister Mentor Lee Kuan Yew said.

Mr Lee made the assessment at the Tanjong Pagar GRC’s Lunar New Year dinner.

The Minister Mentor also said he expects Singapore’s economy to grow between four and six per cent this year.

Speaking to residents in his constituency, Mr Lee said Singapore has done well in the last five years. The island state has a growing economy, increasing real incomes, better homes which are rising in value, and citizens are generally better off.

To take advantage of the economic opportunities and make up for low birth rates, Singapore had to increase its immigration. There were also more foreigners working in Singapore on Work Permits, S—passes and Employment Passes. These foreign workers contribute to the country’s economic growth.

Mr Lee noted that in the past few months, the government has taken further steps to widen the differentiation between citizens and Permanent Residents, and to slow down the inflow of foreigners.

However, he said Singaporeans must recognise that without foreign workers in the construction, manufacturing and service industries, many projects, such as the integrated resorts (IRs), could not have been possible.

"These two IRs have increased jobs available, and will bring a huge number of tourists and give a boost to our economy," the Minister Mentor said.

"Foreign workers also built housing and infrastructure projects like public transport, schools and hospitals all over Singapore. Without them, these projects could not have proceeded and our economy would slow down, to the detriment of Singaporeans."

Mr Lee explained that if Singapore wants to slow down the intake of foreign workers and yet continue to prosper, local workers must increase their productivity.

"Let me explain what happens when we make progress. HDB prices go up, private home (prices) go up, all asset prices go up. Everybody finds he owns something more valuable in the house, his shares are worth more and he can live a good life," said Mr Lee. "Of course we have to put up with more crowded trains, more crowded buses, (but) it cannot be helped.

"Let me tell you what happens when we slow down too much. You get the reverse spiral. Low growth, maybe even zero growth. Last year we had minus two per cent. Prices go down, property prices go down, incomes go down, you can’t refurbish your houses, no new SERS, no upgrading and the country goes down.

"So between the two — growth against no growth, I am confident we chose the right decision — growth, whatever the inconveniences or competition for space, buses, MRTs, and even schools. But we always give preference to our own citizens.

"Without growth, Singapore will not be what it is and the key to our growth is a government taking right decisions and labour unions, employers, and the government working together. No other country in the world has got this combination."

"The same number of Singaporean workers must produce more by getting better training, acquiring higher level of skills, working smarter and making a collective effort as the Japanese do to make their companies succeed.

"If we cannot increase the productivity or the output of our citizens, our economy will slow down. We will have a deflating economy, with a series of knock on effects as prices of all assets, including flats will go down... demand will lessen, pay will fall and so will the number of jobs and promotions."

Mr Lee added that when this happens, talented Singaporeans will leave for greener pastures, which will lead to Singapore’s decline.

"That is why the government decided in the past five years that it was better to grow the economy and manage the accompanying social pressures rather than slow down the economy. If our neighbours grow and we stagnate, Singapore will face a very different geo—political environment in the future."

Hence, to do well in the next five years, Mr Lee said that Singaporeans must raise skills across the board, have more enterprise innovation, and restructure the industries.

Every worker also has to be re—skilled, re—trained and re—educated to achieve higher standards of capabilities.

Mr Lee said he believes a three—way partnership that involves the government, unions and employers can achieve this.

In his Budget speech next Monday, Finance Minister Tharman Shanmugaratnam is expected to elaborate on how Singapore plans to tackle these issues, which have been highlighted by the Economic Strategies Committee.

CNA/yb

Singapore ups growth view but may stand pat on policy

Reuters - 1 hour 13 minutes ago

By Saeed Azhar and Fabian Ng

* Govt ups 2010 GDP growth forecast to 4.5-6.5 pct vs 3-5 pct

* Economy shrank annualised 2.8 pct q/q s/adj in Q4

* Economists expect c.bank to stand pat on policy in Apr

* Inflation outlook lowered slightly due to rebasing of CPI

SINGAPORE, Feb 19 - Singapore raised its economic growth forecast for this year after reporting better-than-expected fourth-quarter data, citing a pickup in trade and industrial production and stable financial markets.

The government now expects gross domestic product to grow by 4.5 percent to 6.5 percent in 2010, up from a forecast of 3 percent to 5 percent made only a month ago, the Ministry of Trade and Industry said on Friday.

The economy shrank 2.8 percent in the fourth quarter on a seasonally adjusted, annualised quarter-on-quarter basis, much better than the initial government estimate of a 6.8 percent contraction made last month.

Economists said the central bank will likely keep its monetary policy unchanged at its next scheduled review in April, citing officials' concerns about the global economy in the second half of 2010 and benign inflation.

"I don't think there is an immediate push for them to do anything with monetary policy, given they are still concerned about the second-half outlook," said Selena Ling, head of treasury research at Oversea-Chinese Banking Corp in Singapore.

The Monetary Authority of Singapore sets policy by managing the value of the Singapore dollar <SGD=> against a secret basket of currencies. The current policy calls for a stable currency.

"We expect the MAS to maintain its neutral FX policy in April and to tighten only in October," said Standard Chartered Bank economist Alvin Liew.

UNCERTAIN OUTLOOK

The government said its upgrade from the earlier 3.0 percent to 5.0 percent GDP growth forecast reflected "increased strength in the near-term growth momentum". It brings the official forecast in line with private sector estimates.

"The outlook for the second half of the year remains uncertain. Private final demand in the G3 may remain weak, as there are still few indications that non-policy induced private demand is gaining strength," it said.

Ravi Menon, a permanent secretary at the Ministry of Trade and Industry, told reporters that he was more concerned about private consumption in the United States than sovereign risks in European countries such as Greece and Spain.

Economists expect Singapore Finance Minister Tharman Shanmugaratnam to announce a number of growth-supporting policies in his 2010/11 budget on Monday.

"Even as the government steps away from the 'emergency' mode that the 2009 budget was formulated in, they are likely to retain a 'better safe than sorry' stance," noted Robert Prior-Wandesforde at HSBC in Singapore.

The government raised its 2010 trade growth outlook to a range of 9 percent to 11 percent from an earlier forecast of 7 percent to 9 percent. It expects non-oil domestic exports to rise by 10 percent to 12 percent this year.

It lowered its 2010 inflation forecast to 2 percent to 3 percent from the previous 2.5 percent 3.5 percent due to a rebasing of the consumer price index.

For the whole of 2009, Singapore's gross domestic product shrank by 2 percent following a revised 1.4 percent rise in 2008.

[kueytoc]

Government announces 2 measures to cool property market

Channel NewsAsia - Saturday, February 20

SINGAPORE: The Government has introduced two new measures to cool the property market and pre—empt a bubble from forming in the private homes sector. They come into effect Saturday.

The Ministry of National Development said this will help ensure a stable and sustainable property market, and to curtail the HDB resale market where prices tend to track private property movements.

From Saturday, it will be more difficult and expensive for speculators to own and flip properties. A Seller’s Stamp Duty will be imposed on all residential properties and residential land bought after Friday, and sold within one year from the date of purchase.

The housing loan limit will also be capped at 80 per cent — down from the current 90 per cent.

This new loan limit will apply to all housing loans granted by financial institutions for private homes, executive condominiums, HUDC flats and HDB flats, including those sold under the Design, Build and Sell Scheme. But loans granted by the Housing and Development Board (HDB) for flats, will still have a cap of 90 per cent.

Last September, the Government introduced anti—speculative measures to cool the private homes market. While these helped initially, there were signs the market was heating up again.

The new measures come as demand for private homes continues to soar. The number of units sold by developers in January was three times more than December. It was also the highest monthly total since September last year.

The Ministry said the objective of these measures is to discourage short—term speculative activity that could distort underlying prices. It is not targeted at the purchase of properties for owner occupation or longer term investment.

Market watchers said the measures are easiest to implement, without causing the market to come to a standstill.

Eugene Lim, associate director, ERA Asia Pacific said: "We are recovering. The economy is recovering and the market is picking up so what they want to do is to make sure the property market is moving up in tune together with the economy and not faster than the economic recovery."

Analysts added that the prices and volume of private property homes are unlikely to be significantly impacted.

Donald Han, managing director, Cushman & Wakefield said: "It has got a fairly minimal impact to the market, mainly because a lot of investors from our records are buying for the medium term, at least for a period of two to three years.

"Some investors will probably stand by the sidelines and see how sales progress into February and March. It will take some wind out of the market; potentially it could be around 10—15 per cent in terms of the numbers of new home sales taken out of the equation."

The Real Estate Developers’ Association of Singapore said the reduced mortgage cap is unlikely to have significant impact on genuine buyers and investors, as lending institutions have already been more prudent in the aftermath of the global financial crisis.

CNA/sc

[kueytoc]

Household income for 2009 falls across the board

Channel NewsAsia - Saturday, February 20

SINGAPORE : Household income from work fell in real terms across all income groups in Singapore last year.

This is according to figures released by the Department of Statistics on ’Key Household Income Trends, 2009’.

Findings indicate that Singapore’s bottom 10 per cent was the hardest hit.

2009 was a rough year for all. Each member of the poorest group of households got a monthly income of S$334, down from S$340 in 2008.

In real terms, the average income per household member among employed households fell by 3.5 per cent.

But things were not rosy for Singapore’s top 10 per cent employed households as well.

Their average monthly income from work fell by 2.3 per cent.

Associate Professor Tan Khee Giap, Lee Kuan Yew School of Public Policy, said: "Those who got hit hard are not just the blue—collar (workers), but also the white—collar (workers). That is why you are also seeing white—collar (workers) having severe...pay cuts. 2009 was an unusual year, we should see (things) picking up over the next two years."

The fall across the various income groups is accounted for by the weak labour market conditions last year, which saw higher unemployment rates and lower wages. This also led to an increase in the number of persons not working in a household.

Meanwhile, the median monthly household income from work among all resident households dropped by 1.9 per cent — from S$4,950 in 2008 to 4,850 in 2009.

Higher consumer price inflation meant that resident households saw real income fall by 2.5 per cent, a far cry from the growth of 6.1 per cent in 2008.

Among resident households, those living in one— and two—room HDB flats saw the greatest fall of 13.9 per cent in median monthly household income.

Those living in bigger housing types saw a 2.3 per cent drop in real terms.

According to the paper, median household income from work fell 1.8 per cent for those living in four—room HDB flats.

But there is a silver lining. Government schemes like the Resilience Package helped narrow the rich—poor income gap.

A measurement of income inequality, also known as the Gini coefficient, was 0.453 in 2009, down slightly from 0.454 from the previous year.

Associate Professor Tan said: "The income gap as measured by the Gini coefficient since 2007 and 2008 has been narrowing. This is basically due to the government subsidies and rebates, including the Workfare (Income) Supplement Scheme..."

Lower income groups benefited the most. On average, the Resilience Package added S$2,460 per household member to resident households in one— and two—room HDB flats. Those in three—room flats got S$1,600. This was more than the S$930 per household member for households in private flats and landed properties.

Associate Professor Tan said: "We should look towards this coming Budget on Monday, where the lower income group will be addressed, and where the blue—collar workers, low—wage (workers), would have to be encouraged, by asking them to work longer and make up the difference for the low pay they are getting."

This may be possible, given the government’s latest upward revision of the economic growth for this year.

CNA/ms

[kueytoc]

Home buyers still flock to showrooms despite new property measures

Channel NewsAsia - Sunday, February 21

SINGAPORE: New measures kicked in on Saturday to curb speculation in the property market.

A Seller’s Stamp Duty will be imposed on all residential properties bought on Saturday and sold within one year, while housing loans from financial institutions will be capped at 80 percent of property value.

Are they taking the buzz out of the property market? Not yet — at least not for those who are buying for the long—term.

It was business as usual at one property showroom on Saturday, as a steady stream of visitors checked out the units available.

Sales of units at the Altez condominium — located just opposite Tanjong Pagar MRT station — are moving fast.

One woman in her 30s snapped up four units — two to stay in and two to rent out.

The condominium’s developer said they could still sell an entire floor of units within an hour.

Some home buyers said the reduction in the home loan limit did not make much of a difference.

Home buyer Raphael Tan said: "The banks have been very strict, anyway. So I think we will still be on track for our financing."

And those who are buying for the long—term are not worried about the new Seller’s Stamp Duty.

Doris Chia, another home buyer, said: "Although it’s quite pricey now, I think this is a good location and for long—term investment."

Analysts expect developers to launch more high—end properties in the first half of this year.

These properties typically sell at S$2,000 per square foot and attract buyers and investors who are less price—sensitive.

Donald Han, managing director of Cushman and Wakefield, said: "A lot of the high—end investors are typically not bound by any limitation. They don’t go for maximum loan—to—value ratio. In some cases, they just go for 40 to 50% of loan—to—value ratio. In some cases, they even buy on a cash basis."

Analysts said the mood to buy won’t change much as the measures are meant to flush out speculators, who make up a small percentage of the market.

CNA/ir

[kueytoc]

HOT OFF THE PRESS

Singapore government's FY2009 budget deficit was $2.9b

By Lin Jiamei, Channel NewsAsia | Posted: 22 February 2010 1545 hrs

SINGAPORE: The Singapore government incurred an overall budget deficit of S$2.9b for financial year 2009.

The figure, at 1.1 per cent of Gross Domestic Product (GDP), is lower than the deficit of S$8.7b budgeted a year ago.

Delivering the Budget Statement in Parliament on Monday, Finance Minister Tharman Shanmugaratnam said this "better than expected performance" reflects the return of confidence to Singapore's economy.

The Singapore economy contracted by 2 per cent last year due to the economic downturn.

Resident unemployment reached 5 per cent in the third quarter of 2009 but has since fallen to 3 per cent.

Looking ahead, Mr Tharman said the prospects for 2010 are good, though it is important to be watchful for "risks".

He added that the path to recovery is unlikely to be smooth.

"Prospects for 2010 are good although we have to be watchful for risks. The IMF projects world growth to swing from negative territory in 2009 to 3.9 per cent this year. However the path to recovery is unlikely to be smooth,"

said Mr Tharman.

"The problems over sovereign debt in Greece could be contagious. Efforts by governments to reduce deficits so as to prevent unsustainable increases in debts, while necessary, will inhibit growth over the short term."

Barring further major problems, Singapore's economic growth is expected to be around 4.5 to 6.5 per cent this year.

Mr Tharman said this is a "strong expansion" though it does not reflect what the Singapore economy can sustain over the medium to long term.

There is a need to increase Singapore's productivity by 2 to 3 per cent a year over the next decade, as mapped out by the Economic Strategies Committee.

CNA/ir

[kueytoc]

Wine and beer lovers can drink to this

Channel NewsAsia - Tuesday, February 23

SINGAPORE: Travellers, especially wine and beer lovers, will now have more options when it comes to buying duty—free alcohol.

In his Budget statement on Monday, Finance Minister Tharman Shanmugaratnam said travellers will be able to buy an additional litre of duty—free wine or beer in place of one litre of duty—free spirits. This means that those who prefer wine or beer will be able to enjoy a duty—free allowance of two litres of wine and one litre of beer, or two litres of beer and one litre of wine.

"This has the makings of a suitably difficult PSLE (Primary School Leaving Examination) Maths question," said Mr Shanmugaratnam, drawing laughter from Members of Parliament.

Travellers who frequent duty—free outlets cheered the news.

Administrator Jeffrey Yeo said he would now be able to stock up on wine for occasions such as office parties or family gatherings.

The 37—year—old wine lover added that "though long overdue, this initiative is definitely welcomed as it brings Singapore in line with international regulations on duty—free alcohol."

But hospitality executive Melvin Heng, 24, said the move would not change his buying habits.

"Though it is always great for consumers to have more choices, I would rather see an increase in quota for all three categories of beer, wine and spirits," said Mr Heng, who likes buying spirits.

TODAY/sc

[kueytoc]

MOM releases details on foreign worker levy changes

Channel NewsAsia - Wednesday, February 24

SINGAPORE: The Ministry of Manpower (MOM) has released details on the planned increases in S Pass and Work Permit worker levy rates announced in the 2010 Budget on Monday.

The key changes are the introduction of new tiers and an adjustment of the rates every six months.

The construction sector will see the most changes.

Singapore currently has 1.05 million foreign workers. Of these, 856,000 are Work Permit holders — with 245,000 in the construction industry.

Between July this year and July 2012, the sector will see a 25 per cent reduction in man—year entitlements — meaning the number of foreign workers employed according to project value.

In addition, come 1 July 2011, the government will phase out the unskilled Work Permit holders category in the construction industry and reclassify the remaining ones as "basic skilled".

The ministry will also introduce a new tier for "higher skilled" workers who have relevant experience.

With these refinements, the levy for each "higher skilled" worker will be increased. Come 2012, it will be S$200 — up from S$160 in July this year. For those holding basic skills, it will be S$300 in 2012.

Andrew Khng, president of Singapore Contractors Association, said: "There will be an impact on business costs. But if it is progressively done, the impact will be marginal for the first few months. Then later, we will have to ... modify our work methods.

"We should be looking at more mechanisation and more innovative ways of construction, which I think now is a wake—up call for those contractors who have not been pursuing this because of too much work in the last few years.

"The association will help members to grow in tandem with our call to move towards mechanisation and also to upgrade the skills of the manpower or foreign workers in Singapore."

In manufacturing, the the basic tier will also increase from S$160 in July this year to S$200 in July 2012. For those in the second tier category, the levy will rise from S$180 this year to S$300 in 2012.

Stephen Lee, president of Singapore National Employers’ Federation, said: "They worry that although it is only S$10 per step ... the sheer number they employ is very large, so this will add to the costs.

"Then some companies are a bit at a loss as to how they can increase productivity. So there is a job here for the tripartite partners to work together and work at industry level, especially for those which don’t have in—house capability, to hold their hands to increase productivity."

The ministry said the levy changes will be gradual over the next three years to give businesses time to adjust, and there will be no changes to the levy for foreign domestic workers.

CNA/ir

[kueytoc]

Superman comic fetches record $1 million

Reuters - Tuesday, February 23

LOS ANGELES, Feb 22 - A very rare, first edition Superman comic book in top condition sold on Monday for a record $1 million in a public sale held by website ComicConnect.com.

Owners of the website said the book, Action Comics #1, was first published in June 1938 and introduced the crime-fighting superhero to fans, describing how he was born on a different planet and came to Earth. It also introduces his alter ego Clark Kent's love interest, Lois Lane.

Stephen Fishler, ComicConnect.com founder, said the comic is one of only around 100 in existence and that a scant two or three are in a similar unrestored, high-grade condition.

"If not this book, it may be 10 or 20 years before another one like it would be offered," Fishler said.

Fishler said the book was last on the market 15 years ago when it fetched $150,000. The current buyer remained anonymous.

The $1 million is more than three times the previous record of $317,000 that ComicConnect fetched for a lower-grade Action Comics #1 book last year.

Back in 1938, the comic sold for 10 cents.

[kueytoc]

A more nuanced, fairer property tax

Channel NewsAsia - Tuesday, February 23

SINGAPORE: From next year, if the flat or private property you live in and own has an annual value of $65,000, you will pay up to $240 less in property taxes.

The new progressive property tax system, announced on Monday to the surprise of many, will see owner—occupiers exempted from tax on the first $6,000 of the annual value — that is, the estimated rent — of their homes.

The trade—off? The $25—to—$150 in GST rebates, which owners of properties with lower annual values have been enjoying since 1994, will be scrapped.

The more nuanced tax system for owner—occupied residential properties will benefit all Singaporeans except the ultra—rich — those living in properties with over $77,000 annual value. They comprise only 0.4 per cent of all owner—occupied homes in Singapore, and only 3 per cent of private owner—occupied homes here, said Finance Minister Tharman Shanmugaratnam, who also noted that the change would cost the Government $230 million initially.

Currently, all owner—occupied residences are taxed a flat rate of 4 per cent, while investment residential properties are taxed at 10 per cent.

This "does tax the wealthy more than others", said Mr Shanmugaratnam, but there was "scope" for a more progressive system.

One reason for the rethink: HDB homes have been appreciating in value over the years, meaning a growing tax bill for flat—owners, and while rebates over the years — the latest being in January — have helped mitigate this increase, "we need a longer—term solution that provides a fair and balanced system for all property owners", said the Finance Minister.

Homes with an annual value of about $80,000, therefore, will see a tax increase of "slightly less than $100" a year.

"However, our property tax rates, even for the high—end, will remain lower than in most international cities," Mr Shanmugaratnam stressed.

"That is as it should be, so that we remain a vibrant and attractive place for businesses and individuals alike."

Binjai Park resident Mr Philip Goh, 61, said that as a retiree, "anything helps". His semi—detached house’s annual value is about $31,000, and he forked out $1,250 in property tax last year.

The change in tax structure will have minimal impact on the property market, analysts believe, given the tiny minority that will be negatively affected.

Those likely to be taxed "slightly more" were the luxury properties priced above $4 million in prime districts, said real estate lecturer Nicholas Mak of Ngee Ann Polytechnic. And as taxes for non—owner—occupied residential properties remain at 10 per cent, he added, there should be no impact on those who buy for investment.

Nonetheless, as annual values continue to go up, "the question is whether the Government will increase the upper limit of the annual value bracket where the property tax is 4 per cent", said Mr Mak.

Does this signal that the Government might go further down the path of taxing the rich more, something it has argued against overdoing? NUS Business School Associate Professor Ho Yew Kee: "What the Government probably thinks is that the extremely asset—rich ... have to carry a little bit of burden, and contribute a bit more. 0, 4, 6 per cent is trivial — if I have an $8—million house, I’d pay $2,000 more in property tax a year. It’s not a lot."

— TODAY

[kueytoc]

Pay TV providers now required to cross & carry exclusive content

Channel NewsAsia - Saturday, March 13

SINGAPORE : With immediate effect, Pay TV providers which acquire exclusive broadcast rights to any programme, must cross—carry each other’s content.

This applies to any contract signed or renewed from March 12. It does not affect existing contracts.

The fierce bidding over rights to broadcast the upcoming World Cup matches raised concerns over the issue of ’exclusive’ rights, which has affected consumers in the Pay TV market.

To lock out competitors, Acting Minister for Information, Communications and the Arts Lui Tuck Yew said on Friday said Pay TV operators are willing to fork out substantial amounts for exclusive rights.

This has led consumers to cry foul, especially since they have to subscribe to both SingTel and StarHub — rivals in Singapore’s PayTV market — for example, to catch their favourite football teams in action.

This practice of holding on to exclusive content though is rare in international markets.

Mr Lui said: "Content costs now constitute a significant percentage of pay TV operators’ revenue, compared to international benchmarks. For example, SCV’s content costs to revenue ratio has risen from 40 per cent prior to 2007 to close to 70 per cent today. This is much higher than the average 40 per cent for Pay TV operators in most other countries, including US, UK and Hong Kong.

"Secondly, Singapore suffers from a high degree of content fragmentation compared to other countries. Out of 179 channels today, only seven channels are common to both SCV and SingTel. An international benchmarking exercise using a group of 16 popular channels showed that Singapore was the only country with exclusive arrangements for all 16 channels.

"MDA’s (Media Development Authority) review has concluded that this situation is unlikely to self—correct in the near future, and steps need to be taken to address this market failure".

So under the new Media Market Conduct Code, there will be a Public Interest Obligation. This means Pay TV providers must cross—carry each other’s exclusive content.

For example, if SingTel acquires a new channel exclusively, it must make this channel available to StarHub.

StarHub must carry this programme at the same time SingTel is airing it — and vice versa.

StarHub also cannot make any modifications to the content.

This includes all the advertisements and branding SingTel may have embedded into the programme.

And SingTel will have to pay StarHub to carry its exclusive content.

It will be left to the telcos to work out a cost for this.

For consumers, it means that they can watch an exclusive channel through just one Pay TV retailer.

Consumers, regardless of which Pay TV service provider they belong to, will be charged the rate that has been stipulated by the original content provider. In the case of the example, whatever SingTel charges its customers for the exclusive content, StarHub customers will pay the same rate.

Mr Lui elaborated: "Consumers would no longer require multiple set—top boxes or switch retailers each time the rights of exclusive content changes hands. This will facilitate greater consumer access to pay—TV content, and re—focus competition to other aspects, such as service differentiation and competitive packaging".

For the industry, it means opening up the market to new players.

The rights holder will be able to brand the exclusive content, market it and monetise it as it wishes.

While the law takes immediate effect, the actually sharing of content is likely only to take place from September. For now, MDA will consult industry players, and sort out the details, like how consumers’ bills will look like, and whether the review will affect new media platforms.

As for how this will impact the broadcast of World Cup matches in Singapore, it is status quo for now, as SingTel and StarHub have submitted a joint bid and are waiting for FIFA’s reply.

Mr Lui said: "Let me just say that I am very happy that World Cup comes around only once every four years. We understand that SingTel and StarHub have recently made a new offer and negotiations with FIFA are still on—going. This is a commercial matter that is best left to the two pay—TV retailers and FIFA to settle.

"I know time is running short; we are well into the second half, we are approaching injury time, but we remain hopeful that the negotiations will reach a sensible outcome."

Meanwhile, analysts have said consumers will benefit from the move requiring Pay TV operators with exclusive content to allow such programming to be carried by other operators.

Kenneth Liew, senior market analyst, IDC Financial Insights, said: "In terms of pricing, in future bidding, both companies are likely to not bid so much on exclusive content, because at the end of the day, the other party will get to screen it, so they will actually bid at more reasonable prices.

"This is good news for consumers, because the bid price being lower will actually bring down the cost for consumers as well."

— CNA/ms