SINGAPORE in RECESSION !!!

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S’pore’s population trends follow economic changes

By Alicia Wong – January 13th, 2011

Singapore’s population trends follows economic trends, with non-residents being the most responsive to change, the Census of Population 2010 has found.

These population shifts may reassure Singaporeans who worry about the influx of foreigners, reported The Straits Times (ST).

When the economy does well, non-resident numbers grew quickly. When the economy faltered, the flow of non-residents — those who are neither citizens nor permanent residents — also slowed.

For example, during a boom period from June 2007 to June 2008, non-residents contributed 4.2 percentage points to the 5.5 per cent population growth.

But between June 2001 to June 2002, when the economy plunged after the Sept 11 terror attacks in the United States, there was an outflow of non-residents.

The Census also shows a steady rise in the number of PRs over the last 10 years, reported ST.

There was a sharp spike from June 2008 to June 2009, but numbers fell just as sharply from June 2009 to June 2010 after the start of the global economic crisis.

The Census found the influx of PRs helped boost Singapore’s ageing population. They help make up for the dip in citizens of working age, and also tend to be better-educated than citizens.

However, PRs also have fewer babies than citizens across all age groups. PRs aged 30 to 39 has an average of 1.38 children last year, while a citizen’s average was 1.55.

This could mean they may add to the country’s ageing woes in the long run, noted ST.

Researcher Gillian Koh said the low birth rate among PRs is not surprising, since many possess the professional, highly educated profile that Singapore wants to attract. They would then have the same views toward family life typically associated with such people.

She added, being of high talent and high net worth, they should be able to provide for themselves when old.

Overall, Singapore’s population grew by 26 per cent over the last decade, reaching 5.08 million as of June 2010. Citizens grew by 8 per cent to 3.2 million, and PRs grew by 88 per cent to 541,000. Non-residents increased by 73 per cent to 1.3 million.

And as the population grows, Singapore has also become a more diverse society.

The proportion of residents born outside Singapore has grown. Among these, those born in Malaysia, India and Sri Lanka show a significant increase.

The Census released on Wednesday is the first of a series. It gave figures on education, language, religion and demographic characteristics. The next two releases will cover households and housings, and geographic distribution and transport.

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Singapore announces new measures to cool property market

Reuters - Friday, January 14

By Kevin Lim

* Stamp duty on those who sell homes within four years

* Buyers of second property can only borrow up to 60 pct

* Govt cites low interest rates, excessive global liquidity

SINGAPORE, Jan 13 - Singapore on Thursday introduced new measures to cool home prices that have continued to rise despite earlier efforts to put a lid on a red-hot property market.

Effective Friday, those who buy and sell residential properties within four years will have to pay a stamp duty, up from the current requirement of three years.

Individual buyers who are still servicing an existing loan can only borrow up to 60 percent of the new property's value, down from 70 percent at the moment. For corporate investors, the loan-to-value limit will be cut to 50 percent.

"Previous government measures have to some extent moderated the market, but sentiment remain buoyant," the finance and national development ministries said in a joint statement with the central bank.

"Low interest rates plus excessive liquidity in the financial system, both in Singapore and globally, could cause prices to rise beyond sustainable levels based on economic fundamentals," the government agencies added.

Singapore home prices rose to record levels in the fourth quarter, but at a slower pace, prompting some observers to suggest the government may hold off implementing new measures.

The city-state last announced measures to cool its property market on Aug 30 last year.

Many Asian countries, in particular Singapore, Hong Kong and China, face threats from asset bubbles, particularly in the property sector, fuelled by strong economic growth in the region and cheap money flowing in from the West.

In late November, Hong Kong announced some of its toughest-ever measures to cool the property market, applying a stamp duty of as high as 15 percent on apartments sold within six months of purchase, and tightening mortgage restrictions.

Singapore private home prices rose 17.6 percent last year, according to flash estimates from the Urban Redevelopment Authority.

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Good for Joggers !

New green corridor in East Coast

By Ewen Boey – January 16th, 2011

Park lovers will now find it easier to access their favourite recreational spots and playgrounds in the east.

A new 3.8km green corridor linking the popular East Coast Park to Bedok Town Centre, as well as Bedok Reservoir, will be built over the next five years, reported The Sunday Times.

This makes both recreational spots accessible to Singaporeans via a 20 minute walk, or a short cycle from Bedok MRT station.

This plan is part of a larger “ambitious” makeover for the East Coast, which comes on top of a previously-announced plan to revitalise the Bedok Town Centre with a new food centre, an integrated sports complex, a mall and an air-conditioned bus interchange.

The area stretching from Kaki Bukit to Tanah Merah is also in the pipeline for upgrading, with a cycling network connecting schools, parks and MRT stations being planned out.

When unveiling the details on Saturday at Bedok Town Centre, Senior Minister S. Jayakumar, an MP for East Coast GRC, called the makeover an “ambitious” one that “will benefit not only residents of East Coast but also other Singaporeans”.

He said that the vision is “to be the Gateway to the East Coast”.

“This means giving everyone greater access to what the East Coast is best known for — a great place to have fun, leisure and good food,” said SM Jayakumar.

The upgrading process is part of the S$1 billion second phase of the Remaking Our Heartland programme that seeks to bring new life to older estates in the next five years. Hougang and Jurong Lake are the other towns selected for this programme.

An exhibition on the new revitalisation plans is up at Bedok Town Centre, and will run till Wednesday.

Residents are giving the thumbs up on this new announcement.

Madam Siti Rohdiah, 37, a personal assistant who lives in Changi, visits the hawker centre at East Coast Park once a month with her family to have their favourite chicken wings.

“Now we have to travel there by taxi or bus. The bus ride can take more than than an hour because we have to transfer buses twice,” she said. “We will most definitely use the new corridor.”

According to The Sunday Times, East Coast Park is currently rather inaccessible to non-drivers as they have to either take buses from Bedok Reservoir, or use the 6km-long Bedok Park Connector. If they are coming from Bedok Town Centre, they will have to take the expressway and roads via underpass, or take a bus.

The new corridor, which runs parallel to Bedok North Avenue 1 and Bedok South Avenue 1, will now cut travelling time. Apart from the cycling and pedestrian paths, it will also be lined with gardens and sports facilities.

In the meantime, a new integrated sports facility will be built in Bedok North Street 1, replacing the current Kampong Chai Chee Community Centre, Bedok Sports and Recreation Centre (SRC) and swimming complex. The current SRC will be used for housing developments and a new stadium.

Bedok Town Centre will be given new lease of life with a transport hub that incorporates a new mall, a new bus interchange and a condominium, said SM Jayakumar.

A new hawker centre with a multi-storey carpark will also be built next to the existing one.

A town plaza for community events will then be developed on the site of the old hawker centre.

Finally, an 11km heritage foot trail will be built along Upper Changi Road, and will contain information boards on the area’s history and links up famous food areas at Simpang Bedok and Siglap.

SM Jayakumar, who was Bedok’s MP for 30 years, said that the area has undergone a “total change” over the years.

“But things cannot stand still. With other new towns coming and new estates, we have to move on with the times and see how we can have a total remake of this area,” he said.

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Singapore: A nation of paradoxes?

By Alicia Wong – January 17th, 2011

Has the government neglected nation-building while developing Singapore as a global city? Is Singapore full of paradoxes? What more can be done to help the vulnerable in society?

These questions and more were raised during a discussion at the Institute of Policy Studies’ annual Singapore Perspectives conference on Monday. Twelve panelists from various industries shared their views on three major topics – a “Global City”, a “Caring Community” and the “Singapore Spirit”.

While Deputy Prime Minister Wong Kan Seng mapped out the government’s plans to develop Singapore as both a global city and endearing home in his keynote address, subsequent discussions raised doubts on the possibility of doing so.

One key concern was the “cost” of nation building, with the focus on growing Singapore into a global city.

Writer and independent scholar Derek da Cunha said the apparent focus on developing a global city had “the unintended side effect of causing some fissures to the national fabric”.

For instance, bringing in more immigrants to create a cosmopolitan “buzz” put pressure on transport, housing and employment, he said.

Citing the sharp increase in casino exclusion orders and news reports of crime in the casinos, Dr de Cunda wondered if the drive to turn the Republic into the “Monaco of the East” would further entrench the underclass and lead to a widening social divide.

Chairman for the Workers’ Party and Non-Constituency Member of Parliament Sylvia Lim also highlighted the “palpable sense of loss of identity among Singaporeans due to the pace of change over the last few years”.

Pointing out the contradiction in the terms “Global City” and “Endearing Home”, Ms Lim said the change in the population mix adversely impacted citizens’ sense of belonging and security.

In 1990, 86 per cent of the population was local but in 2010, the figure fell to 63 per cent, she cited.

She said, “Singaporeans must always feel empowered at home”.

The government should retreat from various spheres in life and allow for others to take charge, such as in sports associations, and Singapore should celebrate political diversity, she suggested.

“We must have the confidence that as Singaporeans we will be taken care of,” she stressed, calling for a “closer look at the social safety nets”.

Some felt more should be done for the vulnerable groups, for example, by tackling the widening income gap.

Member of Parliament Denise Phua, who spoke about the needs of the low-income and the disabled, young and elderly in Singapore, called on the government to “play a leading role” so that all citizens have equal access to goods that are their “basic social entitlement”.

Everyone else can also do their part by doing more for others, she stressed.

However, chief executive of the Singapore Indian Development Association T Raja Segar pointed out, a recent survey by the National Volunteer & Philanthropy Centre found Singaporeans more willing to donate money than their time.

In true adversity, such as the Brisbane floods, would Singaporeans step up to help others, he asked. Those who responded said, they believed Singaporeans would.

In addressing the Singapore spirit, some speakers described it as one that looks ahead to what Singapore can be, rather than one that relied on the past. While it brings vitality and openness to society, it could also mean Singaporeans lack refinement and a stable identity, said associate editor at The Straits Times Janadas Devan.

But to director at the Theatre Training & Research Programme, T Sasitharan, “to be at once at home and always at the edge; to feel rooted and at the same time to feel constantly blown away by the wind – these contradictions are what makes us who we are.”

Mr Sasitharan, pointing to the increasing diverse demographics in Singapore, said, “Unless we find space in our hearts to include those who are different… we would no longer feel at home.”

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COE drops $10k for BIG Cars

By Kai Fong – January 20th, 2011

Certificates of Entitlement (COE) premiums have dropped again for big cars but increased for small cars in the latest bidding exercise which ended on Wednesday.

After reporting 13-year highs in December 2010′s final round of bidding, the COE premium for cars above 1,600cc ended at S$58,910 a drop of $10,090 or 14.6 per cent.

Hybrid Motors sales manager Geraldine Lim was not surprised by the decrease as there were fewer bidders.

“Chinese New Year is round the corner, and if the customers are not able to get their cars within this time frame, there is no need to go into the bidding,” Ms Lim told Channel NewsAsia (CNA).

“A lot of people have cleared their Cat B backlog of orders, also due for Chinese New Year,” agrees Glenn Tan, executive director of Tan Chong International. He added that many were anticipating a big cut.

Premium for the Goods Vehicles and Bus category also decreased, by S$5,111 to S$30,000, while that for the Open category registered a smaller 11.6 per cent, or S$8,780, to S$67,009.

What was unexpected though was an increase in the premium for cars up to 1,600cc, which registered the largest drop among all categories in the first bidding exercise for 2011.

The COE for small cars now costs S$40,123 — a rise of S$1,234 or 3.1 per cent.

“(Based on) the number of orders in the market, we feel that the COE should be stable at S$37,000 (or) S$38,000,” said a surprised Raymond Tang. The honorary secretary of Singapore Vehicle Traders Association did not expect the number of bids to go above 1,000.

The same trend is spotted in the premiums of motorcycles, which rose by S$187 to S$1,690, and taxis, which hit S$40,123, up by 3.2 per cent.

Motor traders said aggressive bidding by taxi companies SMRT, CityCab and Comfort was what caused the spike in premiums, reported The Straits Times. The 350 bids submitted made up one-third of the total bids made in the category.

The COE bidding results come before the Land Transport Authority (LTA)‘s reduced COE quota kicks in next month.

The LTA announced on 10 January there would be 22,368 COEs available between February and July – a three per cent drop or 695 certificates fewer than the previous six months, which works out to a new monthly quota of 3,728.

The next round of COE bidding will also see a new staggered quota, which dealers hope will bring prices down.

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Singapore’s fertility rate drops to record low

By Alicia Wong – January 17th, 2011

Singapore’s Total Fertility Rate has plunged to a record low of 1.16, down from 1.22 — already a record low — the previous year, said Deputy Prime Minister (DPM) Wong Kan Seng on Monday, citing preliminary estimates.

He also revealed, a total of 29,265 foreigners were granted permanent residency last year, compared to 59,460 given in 2009.

Speaking at the keynote address of Singapore Perspectives 2011, DPM Wong — who also heads the newly formed National Population and Talent Division — announced the latest figures as he mapped out Singapore’s long-term strategy for managing sustainable population growth.

The annual conference, organised by the Institute of Policy Studies, sought to assess the challenges and solutions facing Singapore today, as it seeks to be an inclusive society.

The main thrust of his speech? How can Singapore grow as a global city and yet remain a “distinctive and endearing home” to its citizens.

To do so, he acknowledged tensions arising from the Republic’s growing size and from rapid, constant change will have to be resolved, adding that ”not all Singaporeans are comfortable with the pace of change and developments.”

He said, the government was aware some Singaporeans feel the pace of life has picked up too fast and that problems like congestion and increased prices are the result of having too many foreigners, while other Singaporeans are more worried about the potential erosion of the Singaporean identity.

However, he contrasted those problems by laying out the bare facts: that Singaporeans are simply not having enough babies.

“The key hurdle to achieving a sustainable population lies in our weak local fertility rate. For more than thirty years, we have not been having enough babies to replace ourselves. Preliminary estimates indicate that our resident total fertility rate has fallen to 1.16 in 2010, even lower than the 1.22 recorded in 2009. The going is hard, but we have not given up.”

Adding to the complexity of the problem is Singapore’s multi-racial, multi-cultural population.

DPM said, most global cities such as New York, Hong Kong and Tokyo have “sizeable populations” to attract investors and grow domestic markets.

“Singapore, however, is a compact city state and any growth in population size must be balanced against the need to maintain a liveable environment and a harmonious ambience.”

Global cities are also “centres of change” that remake themselves from time to time and implement bold initiatives. But too much change, and “we risk losing the essence of home,” acknowledged DPM Wong.

“We want to retain the vibrancy and dynamism of a city on the move, without eroding the sense of belonging and pride in our shared heritage,” he said.

To tackle these challenges, the NPTD and other government agencies will be guided by three key principles, said DPM Wong.

First, the government will “preserve and uphold what is distinctive and unique about Singapore.”

To DPM Wong, this boils down to two aspects: Singapore’s national character, which ranges from being hardworking and thrifty to having a “humour that is folksy and unpretentious”, and Singapore’s multi-ethnic, multi-religious and multi-lingual society.

“In managing our population, we will always be guided by the need to preserve a strong citizen core and to maintain stability in our ethnic mix,” he said.

Second, the government will “ensure that growth and change benefit Singaporeans.” This includes ensuring sufficient manpower by taking in foreigners for economic growth, and mitigating the impact of ageing.

DPM Wong cited how job opportunities, choices and options will grow as Singapore’s economy grows. For instance, up to 10 years ago, the local food and beverage scene was “significantly less vibrant” without the likes of Dempsey Hill.

Third, the government will “remain nimble and be prepared to make adjustments along the way.”

For instance, the immigration framework was tightened to better manage the inflow and quality of new immigrants in the last quarter of 2009. This resulted in half the number of new PRs in 2010, compared to the year before. New citizens have remained fairly steady at 18,758 in 2010, from 19,928 in 2009.

“Whatever we do, we will ensure that Singaporeans will benefit from growth and change. The benefits will be concrete,” assured DPM Wong.

He said, “We will not leave behind those who need more help. The surpluses we have set aside in good times can be tapped on to look after the needs of the old and poor. We will continue to enjoy quality education, healthcare, transport and other social infrastructure.”

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Seller’s stamp duty and loan-to-value explained

By iProperty.com Singapore – January 22nd, 2011

In an effort to maintain a stable and sustainable property market the PAP government has introduced a new raft of measures. iProperty.com Singapore identifies the two that will affect you the most.

Seller’s Stamp Duty (SSD)

[The amount you must pay if you sell your property within a certain time period.]

The SSD has been raised from current three years to four years. You will now pay an SSD of 16%, 12%, 8% and 4% for residential properties which are bought on or after 14 January 2011, and are sold in the first, second, third and fourth year of purchase respectively.

Loan to Value (LTV)

[The amount a bank is able to loan you based on the value of a property you already own]

The LTV limit has been lowered from 70% to 60% for property purchasers who are individuals with one or more outstanding housing loans. If a corporation is purchasing a property, the LTV limit has been lowered to 50%.

Anti-Speculative, but Aspirational Home Owners Hit Too

Burgeoning house prices generally reflect a growing economy and GDP, something the Singapore government obviously wants to encourage. They do also though remain acutely aware that – even with previous property market moderation measures – the combination of low interest rates and a lot of money washing around in the marketplace, property prices could rise beyond sustainable levels for the average Singaporean.

The measures introduced are – especially when interest rates do eventually rise – designed to help prevent purchasers from overextending themselves financially. The raising of the SSD, for example, is aimed at putting off investors looking to make short-term gains – as SSD is payable regardless whether the property is eventually sold at a gain or loss. Notably, the SSD hike is squarely aimed at the private property market, as the required Minimum Occupation Period for HDB flats is five years.

Likewise, the reduction in LTV is aimed at property speculators – although this does raise questions about the PAP’s previously expressed sentiments about property ownership being a key component in Singaporeans creating wealth for themselves – as it reduces the amount of money one can leverage on an existing property to purchase a new one. While borrowers who can show evidence that they have sold their existing properties will not be subject to the lower LTV limit when they buy a new property, it could be argued this would only benefit the super-rich, as most home owners would expect to take a loan on their current home before purchasing the next.

First-time homebuyers are, obviously, not affected by the new measure. However, those taking a second concessionary HDB loan must use the CPF refund and 50% of the cash proceeds from the sale of their previous flat before they are granted an HDB loan. This measure is a continuance of the PAP’s policy to try and ensure that eligible buyers, especially first-time buyers, purchase public housing in a financially prudent manner.

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60% of Spore Buildings equipped with super-fast Broadband

By Xavier Lur February 2nd, 2011

Singapores Next Generation Nationwide Broadband Network (Next Gen NBN) has reached a new milestone.

According to The Straits Times, 60 per cent of all homes and buildings in the island have been equipped with the state-of-the-art ultra high-speed optical fibre network, which allows users to surf the Internet up to 100 times faster than they could with conventional broadband plans, and achieving higher connection speeds of 1 Gbps and above will become a reality for many.

The scheme, a collaboration between Infocomm Development Authority of Singapore (IDA) and OpenNet, is under the Intelligent National 2015 (iN2015) masterplan by IDA. It kicked off in 2009, with OpenNet reaching the first home in August 2009, and is on track to reach 95 per cent by the middle of next year despite delays faced due to the initial reluctance by condominiums to be wired.

The project took a standstill in November last year when as many as nine in 10 condominiums refused to be connected, mainly due to aesthetic concerns.

OpenNet wanted to lay the cables via boxy plastic piping on wall surfaces, similar to what they did in HDB flats.

However, many condominiums insisted on having the cables hidden within walls or false ceilings, which is more expensive, and neither they nor OpenNet were willing to foot the bill.

It went smoothly only when the Government intervened, releasing a statement saying that all condominiums are required to allow the installation of the fibre-optic cabling needed for the network, and those who failed to do so would be fined up to S$1,000 a day.

The resistance put up by condominiums could potentially cut off 20 per cent of Singapores one million households from the network.

Commercial broadband plans served by the billion-dollar broadband network have yet to be offered by broadband service providers such as SingTel and StarHub, but the cost to sign on to the ultra high-speed broadband is one big factor among consumers.

I think you will see cost coming down over time. Obviously it will be a competitive market, I dont want to announce what our prices will be yet, Neil Montefiore, StarHubs CEO told ChannelNewsAsia.

Singapore is currently ranked #15 in Speedtest.nets list of Top Countries Ranked by Speed with an average download speed of 16.23 Mbps while Asian neighbour South Korea tops the list at 39.22 Mbps.

In the hyper-connected country, more than 94 per cent of South Koreans have high-speed connections, according to a report published by the Organization for Economic Cooperation and Development (OECD) while the Internet penetration rate here stands at 72.4 per cent, according to InternetWorldStats.

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SingTel Mobile Client base nears 400 Million

On Wednesday 9 February 2011, 17:10 SGT

Asian phone giant Singapore Telecom (SingTel) said Wednesday its mobile customer base had reached 383 million by the end of December 2010, up 34 percent from the year before.

The increase was driven by customer growth among most of its Asian associates and at its wholly-owned Australian subsidiary Optus, the company said in a statement.

SingTel, which has expanded well beyond its small domestic market, holds significant stakes in India's Bharti Airtel, Globe Telecom in the Philippines, AIS in Thailand, Telkomsel in Indonesia, Warid Telecom in Pakistan and Pacific Bangladesh Telecom Ltd.

Its stakes in these companies range between 21 and 47 percent.

Except for Warid and Pacific Bangladesh Telecom, which registered a fall in the number of mobile phone customers, the rest of SingTel's associates reported a rise in new sign-ups.

Optus said it added 88,000 new mobile customers during the October-December quarter.

At home, SingTel remained the market leader with a mobile customer base of 3.2 million.

SingTel, Southeast Asia's biggest telecom firm by revenues, will announce its earnings for the financial third quarter ended December 31 on Thursday.

In the second quarter to September, SingTel's net profit fell 6.7 percent to Sg$892 million ($699 million).

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Impressive !!!

Slew of Budget Goodie$ unveiled

By Angela Lim – February 18th, 2011

Singaporeans will receive a total of S$6.6 billion of benefits in the 2011 Singapore Budget announced by Finance Minister Tharman Shanmugaratnam on Friday.

$3.2 billion Grow and Share Package: The average Singaporean household will receive S$3,500 from this year’s Budget. This will come from the S$3.2 billion to be spent on the “Grow and Share Package” and S$3.4 billion in longer-term Social Investments for households this year.

All adult Singaporeans will also receive Growth Dividends to share the fruits of last year’s exceptional economic growth. The majority of Singaporeans – 80% – will get $600 to $800 each.

CPF rate revision: The Government will raise the employer contribution rate to CPF accounts by another 0.5 percentage points, from 15.5% to 16%, which will restore the total contribution rate to 36%. The additional 0.5% will go into the Special Account.

The Government will also revise the CPF salary ceiling from $4,500 to $5,000 per month to keep pace with income growth in recent years. This will align the salary ceiling back to the 80th percentile income, and help middle-income Singaporeans.

Radio and TV licence fees removed permanently: The annual licence fee of S$110 for televisions and S$27 for vehicle radios will be removed with immediate effect. Those who have not paid this year’s fees will not have to make the payment, while a refund will be given to those who have already paid.

Mr Tharman said that’s because the fees are losing their relevance. He said televisions are no longer limited to middle and higher-income groups, with 99 per cent of lower-income households owning them today.

Tax cuts: Singaporeans will receive a personal income tax rebate of 20% for individual resident taxpayers for YA 2011. The rebate will be capped at $2,000. Taxes will be reduced significantly for middle and upper-middle income families. Marginal tax rates will be reduced for first S$120,000 of chargeable income.

Levy increase for foreign workers: The Government will also introduce more levy increases on foreign workers for all sectors this year. Most of the additional measures will be phased in at six-monthly intervals, starting only from 1 January 2012, and extending till 1 July 2013, one year beyond the previous schedule.

S$10 billion home upgrading: $10 billion will be spent to upgrade homes and rejuvenate estates over the next 10 years. This is a major effort to preserve the value of HDB flats and will go towards the Home Improvement Programme (HIP), Neighbourhood Renewal Programme (NRP) and Lift Upgrading Programme (LUP), it will invest up to $55,000 per flat.

Low-income groups will also receive additional housing subsidies to better afford their homes. The Government will set aside S$175 million each year for the new Special CPF Housing Grant to help the bottom 50% Singapore households own their homes.

5.21pm – Mr Shanmugaratnam wraps up by stressing that despite the challenges of social mobility as society matures, Singapore will only continue to succeed if Singaporeans strengthen family ties, hold aspirations for a better life, believe that they can get there by working hard and preserve a strong sense of community. This would allow society to stay dynamic and achieve next transformation as a nation.

5.18pm – The Estimated Budget Position for Singapore in FY2011 is a surplus of S$0.1 billion.

5.16pm – The average Singaporean household will receive S$3,500 from this year’s Budget.

5.12pm - To help households cope with rising costs, Mr Shanmugaratnam announces plans to top-up U-Save and S&CC rebates. This will cost the Government S$200 million.

5.10pm – NSmen and NSFs including those below 21 years of age will be given an additional S$100 of Growth Dividends. This will benefit about 2.5 million Singaporeans and cost the Government S$1.5 billion this year. Singaporeans can look forward to receiving their Growth Dividends and CPF top-ups by 1st May 2011.

5.09pm - All adult Singaporeans will receive Growth Dividends to share the fruits of last year’s exceptional economic growth. The majority of Singaporeans – 80% – will get $600 to $800 each.

5.07pm – Mr Shanmugaratnam announces that the Government will significantly increase spending on arts and culture. Over the next five years, the average annual programme spending will be about $365 million, an increase of more than 50% over the current level.

5.06pm - The Government will spend $10 billion to upgrade homes and rejuvenate estates over the next 10 years. This is a major effort to preserve the value of our HDB flats. Under the Home Improvement Programme (HIP), Neighbourhood Renewal Programme (NRP) and Lift Upgrading Programme (LUP), it will invest up to $55,000 per flat.

5.04pm – Low-income groups will get additional housing subsidies to better afford their homes. The Government will set aside S$175 million each year for the new Special CPF Housing Grant to help the bottom 50% Singapore households own their homes.

4.59pm - The Government will top-up the CPF Medisave Accounts of Singaporeans aged 45 and above this year. Those aged 45 to 49 will receive up to $300, while those aged 50 to 59 will get a top-up of up to $400. Older Singaporeans will receive more, with those 80 and above getting up to $700.

The Medisave top-ups will benefit approximately 1.3 million Singaporeans, and will cost the Government $500 million.

4.56pm – To build up Singapore’s long-term care sector for the elderly, Mr Shanmugaratnam will top up the Eldercare Fund by $700 million to reach its previous target size of $2.5 billion. He will also put $1 billion into a new Community Silver Trust, to provide one-to-one matching for donations to VWOs that provide long- term care to Singaporeans.

4.49pm - Mr Shanmugaratnam will increase funds dedicated to needy students by topping up each primary and secondary school student’s Edusave account by $130. The Government has also committed an additional $100 million in Edusave grants to schools.

Currently, a child from a low-income family who starts off in childcare and proceeds through to a polytechnic diploma, already pays only 3% of the cost of his education. With the enhancements we are making today, he will pay just 1% of the cost of his education.

4.47pm – The Government will introduce a new Child Development Credit scheme for all Singaporean children aged six and below. The Credits will be provided from time to time, when there are surpluses to share with Singaporeans.

The Child Development Credit can be used to pay for their children’s preschool, childcare, and medical expenses. 80% of families with young children will receive $400 per child. The other 20% who are better off will receive S$300.

4.45pm – TV and radio license fees will be removed permanently. The Government will do away with the $110 annual licence fee for televisions, with effect from January 2011. The $27 annual fee for vehicle radios will also be removed.

4.43pm - Singaporeans will receive a personal income tax rebate of 20% for individual resident taxpayers for YA 2011. The rebate will be capped at $2,000.

4.41pm - Taxes will be reduced significantly for middle and upper-middle income families. Marginal tax rates will be reduced for first S$120,000 of chargeable income.

4.38pm – Mr Shanmugaratnam stresses the Government’s focus on helping low-income groups through education, employment and home ownership. He said lower-income houses received more transfers than taxes paid last year.

New measures will add up to a total of S$6.6 billion of benefits. These include S$3.2 billion in the ’Grow and Share Package’ and S$3.4 billion in longer-term Social Investments for households this year.

4.31pm – The Green Vehicle Rebate Scheme will be extended for another year till 31 December 2012.

4.23pm – The Government will top up S$1 billion top-up for the National Research Fund this year. S$2.5 billion will also be set aside over the next five years under the Economic Development Assistance Scheme.

4.15pm – The Government will introduce further levy increases on foreign workers for all sectors this year. Most of the additional measures will be phased in at six-monthly intervals, starting only from 1 January 2012, and extending till 1 July 2013, one year beyond the previous schedule. This will give companies time to prepare for the changes.

Levies will be higher in the Services and Construction sectors, where the scope for productivity improvements is greatest.

4.12pm – With the outlook for continued growth in 2011, Mr Shanmugaratnam will raise the employer contribution rate by another 0.5 percentage points, from 15.5% to 16%, which will restore the total contribution rate to 36%. The additional 0.5% will go into the Special Account.

The Government will revise the CPF Salary Ceiling from $4,500 to $5,000 per month to keep pace with income growth in recent years.

This will align the salary ceiling back to the 80th percentile income, and help middle-income Singaporeans. To give employers sufficient time to adjust, both these changes will only take effect in September this year.

4.08pm – To enhance support for business restructuring and skills upgrading, the government will be doubling investment in the National Productivity Fund. Mr Shanmugaratnam will top up the NPF with another $1 billion this year. This will bring the total fund size to the target of $2 billion.

Mr Shanmugaratnam will also make a $500 million top-up to the Lifelong Learning Endowment Fund (LLEF), thus increasing the fund size to $3.6 billion.

3.56pm – Mr Shanmugaratnam says Singapore’s local workforce will expand slowly in the next 10 years. We also should not become ever more dependent on foreign labour. We must therefore restructure our economy and raise skills in every job, so that productivity becomes the key driver of growth.

3.50pm - To raise Singaporeans’ incomes over the next decade, Mr Shanmugaratnam stresses Singaporeans must first sustain our economic growth. The vast majority of Singaporean households, including both the median and the lower-income households, have seen significant improvement in real incomes in the last five years, and consequently for the decade as a whole.

3.40pm - Singapore’s strong growth last year has yielded an improved fiscal position for FY2010. The better growth is estimated to account for about 80% of the increase in revenues over what we projected a year ago. The property market was also much stronger, resulting in further increases in stamp duties and other revenues.

The Government had originally estimated an Overall Budget Deficit of $3.0 billion or about 1.0% of GDP for FY2010. Given the much improved economic performance, we now expect the overall budget to be close to a balanced position, with a small deficit of $0.3 billion or 0.1% of GDP.

3.37pm - Mr Shanmugaratnam said Singapore’s economy is expected to grow more slowly this year as the nation is well past the rebound from the crisis.

Growth in the emerging economies, which accounts for two-thirds of global growth, is expected to remain strong. However, these economies are also seeing a build-up of inflationary pressures. Food and other commodity prices have climbed sharply, because supply has been affected by harsh weather conditions while demand continues to grow in China and elsewhere.

He stresses inflation as a key concern for everyone this year, and especially for low-income families. CPI inflation was 4.6% year-on-year in December 2010. He said Singaporeans can expect inflation to be around 3% to 4% this year, higher in the first half before moderating later in the year.

3.30pm – Mr Shanmugaratnam says Singapore’s economy has done exceptionally well in the past year. After two weak years in 2008 and 2009, when growth was close to zero, our GDP grew by a record 14.5% in 2010. Unemployment is down to the levels seen in early 2008, before the crisis.

He said Singapore’s stronger recovery was partly good fortune, as global trade and confidence in Asia turned around. But it also reflected the way the nation was well-prepared.

[kueytoc]

Better BUY...NO REGRET$ !!!

UPDATE 2-Hutchison unit sets price range for $5.8 bln IPO, SE Asia's biggest

Monday 28 February 2011, 14:05 SGT

By Saeed Azhar and Harry Suhartono

* Price range of $0.91-$1.08 a unit - prospectus

* To sell up to 3.9 billion units, excluding cornerstones

* Temasek, Paulson, Cathay Life among cornerstones

* Cornerstones to invest $1.6 billion

SINGAPORE, Feb 28 (Reuters) - Hutchison Whampoa's ports unit is looking to raise as much as $5.8 billion in an initial public offering (IPO) in Singapore, allowing investors to tap into China's booming infrastructure business.

Southeast Asia's biggest ever listing comes at a time when intra-Asia sea-borne trade is swelling and global container shipping firms are putting more ships and resources to serve Asian routes from Europe and North America.

The assets of the Hutchison subsidiary, Hutchison Port Holdings Trust, are located in Hong Kong and Shenzhen, two of the world's busiest container ports in 2009 with a total throughput of 39.2 million twenty-foot equivalent units, according to the IPO prospectus.

It would be the first publicly traded business trust backed by port assets, according to the prospectus, and would exceed Malaysia's Petronas Chemicals' $4.1 billion listing of 2010, which has so far been the biggest listing in the region.

"Given the size of HPH Trust, we expect the proposed IPO to attract significant investor interest," said Sean Quek, Singapore head of research at Credit Suisse.

"In addition to the potential direct impact on trading volume, the IPO could also set the path for business trusts and port-related companies' listings here."

INDICATIVE PRICE

Hutchison, the world's largest container terminal operator, is owned by Hong Kong tycoon Li Ka-shing, who is spinning off Hutchison Port Holdings Trust in a separate listing in Singapore to take advantage of regulations that are favourable for trust-like companies.

The company chose Singapore over Hong Kong because the city-state has been an attractive destination for infrastructure and real estate trusts, bankers said.

The company reported a net profit of $655 million in 2010, from a revenue of $1.49 billion.

Similar trusts have been lapped up by investors who seek a higher dividend yield and want to diversify from bonds.

Singapore is home to property trusts owned by Southeast Asia's biggest property firm CapitaLand as well as shipping, infrastructure and logistics' trusts from China to Australia.

Hutchison has set an indicative price of $0.91 to $1.08 per unit for the IPO, aiming to raise $4.2 billion through the sale share.

The proceeds will be used to pay off debt and for development of two ports' projects in China.

PAULSON AND TEMASEK

Cornerstone investors, who include Singapore state investor Temasek Holdings , U.S. hedge fund manager Paulson & Co and Cathay Life Insurance, will be putting in an additional $1.6 billion in the deal, according to its preliminary prospectus.

Based on the maximum indicative price, the market cap of the company will be $9.4 billion after the listing, which is likely to be within a few weeks.

Hutchison Whampoa and Singapore state-owned PSA International, which owns 20 percent of the Hong Kong firm, will together own 32 percent of the company after the listing.

The units will offer a yield of between 5.5 percent to 6.5 percent to unit holders, according to the prospectus.

Paulson will invest $350 million in the IPO, whereas a Temasek unit will put in $100 million.

DBS , Deutsche Bank and Goldman Sachs are joint bookrunners and issue managers.

JPMorgan , UBS , Barclays , Morgan Stanley are among co-lead managers.

(Additional reporting by Charmian Kok; Editing by Raju Gopalakrishnan and Muralikumar Anantharaman)

[kueytoc]

S'pore inflation rate maintained at 5%

On Tuesday 26 April 2011, 8:00 SGT

Singapore's inflation remained unchanged at five percent in March, similar to the five percent increase in consumer prices in February.

According to the Department of Statistics, the consumer price index (CPI) increased five percent year-on-year in March, primarily due to higher housing, food and transport costs.

The transport cost grew by 13.4 percent, attributed to higher prices of petrol and cars, while higher electricity tariffs and accommodation costs increased housing costs by 7.1 percent. Meanwhile, food prices rose 2.6 percent, especially for vegetables, seafood, rice, meat, and prepared meals.

In a research note released yesterday, Citigroup concluded that inflation will moderate for the rest of the year.

"Headline year-on-year inflation will likely average four percent to 4.5 percent in Q2, but remain high at around three percent by year-end owing to the delayed pass through of pipeline inflation pressures as well as the expiration of deferred price hikes such as public transport fares," said Kit Wei Zheng, a Citigroup economist.

Excluding accommodation costs, the CPI was 4.2 percent higher in March compared to the same month in 2010. In Q1 this year, the CPI grew by 5.2 percent compared to the same period last year.

Meanwhile, core inflation, excluding private transport and accommodation costs, increased 1.8 percent in March compared to the previous year.

The CPI climbed 0.1 percent month-on-month, as the higher costs of items such as housing, clothing and footwear were partly offset by lower transport costs. On a seasonally adjusted basis, it rose 0.3 percent in March against February.

Leif Eskesen, HSBC Chief Economist (India and Asean), believes that inflation is expected to stay on the high side for a while, due to factors such as instability in the Middle East, higher wages and increasing food prices.

"There is likely to be somewhat softer readings on economic activity over the next few months due to elevated oil prices and the spillovers from the tragic events in Japan, but that will not suffice to bring about slack in the economy."

[kueytoc]

SPECIAL REPORT - A Tale of Two Exchanges: How Singapore lost Down Under

On Thursday 21 April 2011, 15:20 SGT

By Michael Smith and Saeed Azhar

SYDNEY/SINGAPORE (Reuters) - Australian Treasurer Wayne Swan was in the South Korean coastal city of Gyeongju preparing for meetings with G20 finance ministers when he heard the news.

An adviser had to pry the politician's attention from his mountain of summit paperwork to relay the story hitting the news wires that Friday afternoon in October: the Singaporean and Australian stock exchanges were in takeover talks.

Swan was stunned.

This was a large, politically-sensitive transaction involving the possible sale of Australia's stock exchange and no one had sounded out his office beforehand, a common practice given Australia's Treasurer has the power to block deals involving foreign owners.

Swan, whose Singaporean counterpart Tharman Shanmugaratnam was also attending the G20 summit, knew from the beginning the deal was going to be a political headache.

It was just after lunchtime in Sydney that Friday when the Singapore Exchange and Australia's ASX Ltd both went into a trading halt pending an announcement about a "possible business combination".

The news sent traders rushing back to their offices and raised eyebrows in the Singapore market as the first media reports surfaced that SGX was planning a full takeover of the Australian exchange.

While Swan was distracted that weekend talking to finance ministers in South Korea about global growth imbalances, SGX boss Magnus Bocker and his army of bankers and lawyers worked around the clock to finalise the terms of the ambitious $8 billion takeover bid.

On Sunday, Bocker flew from Singapore to Sydney where the long battle to sell his stock exchange consolidation dream was about to kick into first gear.

The clearly excited SGX chief joined his Australian counterpart Richard Elstone on Monday morning to brief the media and investors on the deal their bankers code-named "Avatar", presumably named after the Hollywood movie about future humans invading an alien planet for its resources.

The duo wanted to create Asia's fourth-largest stock exchange through an $8 billion cash and shares offer for ASX, which would cut costs and enable the combined group to tackle new competitors.

"Magnus and I have not had a lot of sleep over the weekend. This is the beginning of what is probably five to six months of hard slog," Elstone told reporters gathered in the auditorium of ASX's headquarters that Monday morning.

He could not have been more right.

JUNIOR PARTNER

Just as the Treasurer felt he was kept in dark about the deal, the two chief executives were taken by surprise five months later when Swan delivered a swift rebuke.

They had deployed lobbyists to the Australian capital of Canberra, other global exchanges had since announced their own plans for mergers, and they had even amended the terms of the original offer to include more Australian directors on the combined entity's board.

This had little sway on the Treasurer who on April 8 described his decision to reject the proposal as a "no-brainer". Swan, 56, who grew up in a country town in the northern state of Queensland, is a key Labor Party power broker representing the right wing. Among his list of reasons were concerns about relinquishing control of the nation's clearing and settlement systems, and Australian capital and jobs moving offshore.

"Becoming a junior partner to a smaller regional exchange through this deal would risk us losing many of our financial sector jobs," said Swan, the father of three.

"So let's be clear. This is not a merger, it's a takeover that would see Australia's financial sector become a subsidiary to a competitor in Asia."

The decision threw a spanner in the works for the wave of exchange consolidation sweeping the globe and has left a cloud hanging over the future of the SGX, which needs to find new partners or possibly be swallowed up itself.

It also opened old wounds about Australia's ambitions to become a regional financial centre and raised a political storm domestically in Australia, where Swan's minority government relies on key independents to get laws passed.

Swan's political opponents and sources close to the exchanges said the official explanation was a smoke-screen for the real reasons the bid failed.

"A lot of them seemed to me to be quite emotional and xenophobic type issues," former ASX chairman Maurice Newman told a business lunch in Sydney on Tuesday, describing the failure as a lost opportunity.

The Singapore government's indirect 23 percent non-voting stake in SGX was top of the list, according to sources, although this was something the Australian government could never say publicly.

While investors warmed to the offer immediately, politically the deal appeared doomed from the start.

Even with the government's blessing, Australia's parliament was seen as the biggest hurdle, as SGX would also need other political parties on its side as well to remove a 15 percent ownership cap on the ASX.

Former Singapore Prime Minister Lee Kuan Yew's famous warning in the 1980s that Australia could become the "poor white trash of Asia" still resonates with some lawmakers, who are suspicious of the Singapore's government indirect links to the SGX.

However, others argue a culture of bigotry and nationalism robbed Australia of a genuine opportunity to use Singapore as a gateway into Asia and boost its efforts to establish Australia as a regional financial hub.

TWISTS AND TURNS

In an unexpected twist, parliament never got to vote on the offer. Instead, word got out in late March that the government had already made its decision.

In a series of media leaks and statements, which analysts said raised questions about the independence of Australia's regulatory processes, it was clear by late March the bid was in its death throes.

At the time, Bocker and his advisers were focused on providing reams of documents and information to Australia's Foreign Investment Review Board (FIRB), a secretive panel of senior businessmen, who make formal recommendations to the Treasurer about whether a takeover is in Australia's "national interest".

FIRB had been expected to take another two months to weigh up the bid and Bocker and his advisers were settling in for the long haul when word came from his advisers in Australia on April 4. that something was up.

"The advice was that there could be something coming out in Australia. We weren't sure what it was," said a source with knowledge of the deal.

On April 5, the disconcerting news hit Bocker's desk.

FIRB had written to the SGX saying Swan was of the view that the bid should be rejected. Swan went public later that day, saying FIRB had advised him the takeover was not in the national interest and he "intended" to accept that advice.

FIRB was telling the SGX what Swan thought and Swan told the world what FIRB thought but no one was telling anyone what they actually thought themselves, Australian pundits noted.

Bocker quickly called a meeting at his office to discuss what should be SGX's next move and decided to go public with his views.

Bocker had launched the audacious cash-and-shares bid for ASX in October just 10 months into the top job at SGX. The slim 49-year-old Swede with a booming voice and a ready laugh is a glad-handing networker, a familiar character-type in the Australian business world. So the father of three children felt a little aggrieved by the tone of the rejection.

"Like us, he (Bocker) was very surprised on how strong the FIRB statement was," the source said.

The FIRB statement came after SGX and ASX had replied to more than 100 queries from the regulator relating to their merger proposal, sources with knowledge of the deal said.

Bocker later told reporters he was surprised because the letter contained no criticism of the proposed structure of the deal or the governance for the merged exchanges.

He was clearly annoyed, his mood not helped by technical issues with a chaotic conference call that afternoon as journalists and fund managers from around the globe scrambled to dial-in.

The rejection was a major blow, because the marathon-running Bocker had been discussing exchange consolidation with Elstone on and off for years.

Their relationship goes back to around 2000 when Elstone was running the Sydney Futures Exchange (SFE). Bocker was then chief operating officer at Scandinavian exchange OMX and was selling technology to the SFE for its next-generation clearing system.

The talk got serious around mid-2010 when new competition from alternative trading platforms ramped up pressure on exchanges globally to cut costs. Elstone's pending retirement was also a major factor in the marriage, as there would be no ego to stand in the way of Bocker's desire to run the combined company, the sources said.

Another key relationship was between ASX chairman David Gonski, who is on the board of Singapore Airlines. Singapore Air's CEO Chew Choon Seng is SGX chairman.

LOBBYING EFFORTS

Investment bankers, analysts and some media commentators were critical of the FIRB decision, and said the Treasurer needed to better explain the reasons for rejecting the deal.

"I think there should be more transparency on how the decision was reached. I think that would be in the national interest," Sydney University Economics and Business School Professor Alex Frino said.

"We have a decision by the FIRB, and a very short statement by the Treasurer. I think the market needs more information."

Others suggest the SGX was naive in the way it approached the deal. While Bocker had the ASX and its shareholders on board from the beginning, they failed to test the waters with the government or main opposition party beforehand.

The ASX hired senior lobbyists to pitch its case. David Gazard, who once was an adviser to the former conservative government's treasurer, and Cameron Milner, who has worked with current Prime Minister Julia Gillard, led the charge, while well-connected bankers at advisers UBS were also involved.

However, the lobbying may have started too late.

A majority of politicians and their advisers questioned by Reuters in the last week of March said they had little or no interaction with representatives from either exchange and the general feeling was that the deal was doomed.

SGX sources played this down, saying a lot of effort had gone into lobbying and they had confidence right up to the end of winning support from the government and the Opposition to get the deal through parliament.

Australia's minority government only holds power with the support of Greens and independent politicians and the SGX needed the opposition Liberals-National Coalition on board to get a deal through.

While the opposition's support for a deal was unclear, it didn't stop it from accusing the government of bungling the decision-making progress.

"Wayne Swan has turned Australia's international reputation into that of a third-world country. His bungled decision-making process has reflected poorly on Australia in what has been a complex commercial process," Australia's shadow treasurer, Joe Hockey said.

It was the first time the Australian government had rejected a major foreign takeover on national interest grounds since 2001, when Royal Dutch Shell 's bid for Woodside Petroleum was blocked.

Swan said he would not oppose future deals if they protected Australia's financial architecture, enhanced the country's standing as a financial services centre in Asia, boosted access to capital for Australian businesses and supported growth in high-quality financial services jobs.

However, the ASX is now seen as largely off limits.

The deal's rejection also puts Bocker in a bind as he seeks other merger partners. Bocker has long had a reputation as a deal-maker. He joined Swedish exchange operator OMX in 1986 and made his mark bringing together seven Nordic bourses to form OMX AB, which he led between 2003 and 2008, before selling out to NASDAQ .

"I don't see myself as a dealmaker, he told Reuters last month in an interview. "I see myself as an operator. I like building, changing and growing exchanges."

Analysts say he'll be back in the fray after nursing his wounds from the bruising Australian bout, but he may not be the hunter next time, but the prey.

Financial exchanges around the world are chasing cross-border deals to build scale and cut costs amid increasing competition from alternative trading platforms such as dark pools.

The Tokyo and Osaka exchanges are in talks. Deutsche Boerse is competing with a partnership of Nasdaq OMX Group and IntercontinentalExchange to buy NYSE Euronext . The London Stock Exchange is looking to combine with Canada's TMX Group.

The ASX experience has left Bocker and the SGX poorer and perhaps wiser. The Singapore exchange last week reported a lower-than-expected net profit, after booking S$12 million in costs related to the failed takeover bid. Now, analysts say, the talk in the market is that SGX itself is a takeover target.

Bocker says he'll pocket the lessons learned and continue to seek out partnerships and strategic alliances, though nothing tangible was on the horizon.

"Of course with the lessons learnt from ASX we will see what other things we can do, in line with other exchanges as well. So nothing specific."

(Additional reporting by James Grubel in Canberra; Editing by Bill Tarrant)

[kueytoc]

SINGAPORE On Track to Overtake VEGAS as Second-Largest Gaming Center

CNBC.com | 03 May 2011 | 09:24 PM ET

By: Ansuya Harjani

Twelve months into business and Singapore’s first two casino resorts Marina Bay Sands and Resorts World Sentosa have already won the jackpot for the island country. The two generated gross gaming revenue of $5.1 billion dollars in 2010.

This year Royal Bank of Scotland forecasts revenue is set to rise by 25 percent to $6.4 billion, placing Singapore on track to overtake the Las Vegas Strip, which is forecast to earn $6.2 billion. That would make the island nation, the world's second biggest gaming center behind Macau.

Analysts say the voracious appetite for gambling among Asians and their growing wealth will drive momentum in Singapore's casino sector for years to come. This is a stark contrast from the Strip, which has seen a slump in revenues for four consecutive months.

The 2,561-room luxury hotel Marina Bay Sands, which has a 200-meter-tall, boat-shaped SkyPark and a lavish casino equipped with 500 gaming tables, attracted more than 11 million visitors over the past year — 885,000 guests walked through its doors over just four days of the Chinese New Year holiday in February.

Marina Bay Sands reported net revenue of $560 million in the three months to December, $457 million of this amount was generated by the casino alone. “Our recent financial results show that Marina Bay Sands is on track on all fronts, even surpassing our original expectations,” commented Mr. Leven, President and COO of parent company Las Vegas Sands .

The success of the casino tycoon Sheldon Adelson’s Singapore venture has helped put Las Vegas Sands back on track after a bankruptcy scare three years ago.

Its rival, Resorts World Sentosa, has seen measurable success welcoming 15 million visitors last year. The family focused casino-resort generated revenue of $623 million in the fourth quarter, over 80 percent came from gaming alone.

While the success of Resorts World Sentosa has been positive for Malaysian-based parent company Genting Group, it has stolen the limelight from the corporation’s own Resorts World Genting, located outside Kuala Lumpur, which was one of the first casinos to open in the Southeast Asian market. Resorts World Genting saw a notable fall in foreign visitors last year, causing its net profit to decline by 3.6 percent in 2010.

Gaming analyst Jonathan Galaviz of Galaviz & Company believes that Singapore’s reputation as a safe and corruption-free global city has been key in boosting its competitive advantage in Asia’s casino industry.

The blazing performance of the Marina Bay Sands and Resorts World Sentosa is also in large part due to the patronage of local Singaporeans, who made up about 60 percent of the casino customers last year, despite a S$100 ($79) entrance fee imposed by the government to act as a deterrent. “I don’t mind the $100 fee because I just go in and win it back,” says 24-year old Singaporean civil servant who frequents the casino once or twice a week.

While the large domestic customer base is seen as positive for the casinos in the short-term, it could pose a threat to the growth potential of the sector in the long-term as the novelty surrounding the gaming complexes wear off. Galaviz says over time, the integrated resorts’ non-casino offerings, for example, Resorts World Sentosa’s Universal Studios theme park and Marina Bay Sand’s Grand Theater will become more important.

Another risk to the sector, according to Aaron Fischer of CLSA, could be a possible intervention by the government to limit gambling by locals. “The government will monitor the actions of the casino operators closely to ensure there are no breaches in law and spirit of law,” he said. For example, last September the government along with the Casino Regulatory Authority (CRA) asked the integrated resorts to discontinue the free shuttle bus services between the city’s suburbs and its casinos. Additionally, since late last year, a few legislators and youth groups have requested that the government increase the casino entry levy to clamp down on local residents gambling at the resorts.

Frank Hung, research associate, Asian Conglomerates and Gaming Research at RBS adds that any further delays in the approval of junket licenses by the CRA could also hamper the growth of the overall market. There has been speculation junkets may be prohibited from operating in Singapore by the enforcement of strict licensing requirements aimed at preventing money laundering.

The VIP gaming market depends largely on the presence of junket operators, a third party that offers credit and brings high roller gamblers to a casino in return for commission. In the absence of junkets, the casinos' gaming revenues could be constrained as they are unable to hand out infinite credit.

However, both Fischer and Hung believe that junkets will eventually get licensed given the very significant business opportunity. “We estimate Singapore gaming revenues of $8.1 billion next year — we see up to 50 percent upside to these estimates should a number of high quality junkets operate in Singapore,” Fischer concluded.

While there may be minor policy risks surrounding the sector, industry experts are confident that the favorable competitive dynamics of Singapore's gaming space and the robust economic climate in Asia will allow Marina Bay Sands and Resorts World Sentosa to surpass the Vegas Strip as early as this year.

© 2011 CNBC.com

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Cooling Measures impact Singaporeans’ Home-Buying

By iProperty.com | Property Blog – Fri, May 6, 2011

By Tracy Chua

A quick online poll by iProperty.com shows that more than half of 104 respondents in Singapore favoured a housing policy that would involve lowering prices for new flats and a re-evaluation of asset enhancement policies.

29 percent supported the idea that permanent residents should be required a longer minimum occupation period of eight years in order to give more priority to Singaporeans.

19 percent, however, believed that Singapore homes are within means and of good quality in comparison to cost.

The poll was conducted over a one-week period from 28 April 2011 to gauge public response to the government's measures to cool the nation's property market.

Also, iProperty.com's Consumer Property Sentiments Survey 2011 had the following results:

1. 59.2 percent of survey respondents say that they are affected by the cooling measures, and are either modifying their property buying/selling/renting decisions accordingly, or are halting plans to buy/sell their properties at this current moment.

2. 58.4 percent of survey respondents either do not think or are undecided whether the measures will succeed in cooling Singapore's red-hot property market.

3. 58.7 percent of survey respondents do not think that these measures are sufficient to stabilise public housing prices and stated their hopes for more to be done to improve the situation.

Over 470 respondents comprising Singaporeans, permanent residents and expatriates took part in the online survey from 27 Dec 2010 to 25 February 2011. The majority of survey respondents fell between the age group of 25 to 54 years, with 71.5 percent earning an annual household income of S$140,000 and below.Most of them are currently living in HDB flats, private apartments and landed property, of which more than half currently have plans to purchase/rent their next property.

Shaun Di Gregorio, chief executive officer of The iProperty.com Group, said of the results of the survey, "Housing policies and other property-related issues are arguably one of the key buzz topics of the upcoming General Elections. From this survey, there are indications that Singapore home buyers are looking forward to additional measures to bring about significant changes in the policies governing the local property market so as to further cement their decision-making process."

[kueytoc]

Is Spore facing BUBBLE Trouble ???

CNBC.COM, On Sunday 1 May 2011, 23:43 SGT

Fed chief Ben Bernanke's pledge to keep interest rates low for an extended period may have cheered the stock markets but one economist cautions it may be fueling a property bubble in Singapore.

Singapore property prices rose 17 percent last year after a 25 percent decline during the recession in 2009. Analysts are growing increasingly worried about property prices and the government has tried repeatedly to cool the sector.

"For now, the party is on, everybody is enjoying it, it's only when the party is over (that) you have a hangover tomorrow morning," Jimmy Koh, executive director and head of research at UOB told CNBC on Thursday.

Koh pointed to the relatively low debt-servicing ratio in Singapore as an indicator he is watching. The ratio currently stands at 20 to 30 percent of household income, compared to the 60 to 90 percent levels seen in 1996, when UOB's data series began. The low debt ratio was largely due to low interest rates, according to Koh. Mortgage rates in Singapore stand at less than 1.5 percent currently, far lower than the 6 to 8 percent rates in the late nineties.

"When (the) interest rate environment does change, that indicator will change and that will determine whether we are in a bubblish mode," Koh said, highlighting that for every 1 percentage point rise in interest rates, debt servicing would go up by 3.5 percentage points.

While he does not see mortgage rates in Singapore heading back to the 6 percentage range seen in 1996, Koh thinks people will start getting a lot more cautious when interest rates hit 2 or 3 percent.

Markets are expecting the U.S. Federal Reserve to begin raising interest rates in the early part of 2012. That would have a direct impact on interest rates in Singapore, since the benchmark Singapore interbank overnight rate (SIBOR) tracks rates in the U.S.

Another factor UOB's Koh said he was watching was the lagging supply of property projects. By 2013, a substantial supply would come onstream. That, coupled with potentially higher borrowing costs in 2012, could prove to be a double whammy for the property market in the city-state.

[kueytoc]

FOREX TRADING: A Beginner's Guide

Selwyn Gishen, On Friday 6 May 2011, 3:24 SGT

Forex is short for foreign exchange, but the actual asset class we are referring to is currencies. Foreign exchange is the act of changing one country's currency into another country's currency for a variety of reasons, usually for tourism or commerce. Due to the fact that business is global there is a need to transact with most other countries in their own particular currency. After the accord at Bretton Woods in 1971, when currencies were allowed to float freely against one another, the values of individual currencies have varied, which has given rise to the need for foreign exchange services. This service has been taken up by the commercial and investment banks on behalf of their clients, but has simultaneously provided a speculative environment for trading one currency against another using the internet.

Forex as a Hedge

Commercial enterprises doing business in foreign countries are at risk, due to fluctuation in the currency value, when they have to buy goods or services from or sell goods or services to another country. Hence, the foreign exchange markets provide a way to hedge the risk by fixing a rate at which the transaction will be concluded at some time in the future. To accomplish this, a trader can buy or sell currencies in the forward or swap markets, at which time the bank will lock in a rate, so that the trader knows exactly what the exchange rate will be and thus mitigate his or her company's risk. To some extent, the futures market can also offer a means to hedge a currency risk depending on the size of the trade and the actual currency involved. The futures market is conducted in a centralized exchange and is less liquid than the forward markets, which are decentralized and exist within the interbank system throughout the world.

Forex as a Speculation

Since there is constant fluctuation between the currency values of the various countries due to varying supply and demand factors, such as: interest rates, trade flows, tourism, economic strength, geo political risk and so on, an opportunity exists to bet against these changing values by buying or selling one currency against another in the hopes that the currency you buy will gain in strength, or the currency that you sell, will weaken against its counterpart.

Currency as an Asset Class

There are two distinct features to this class:

•You can earn the interest rate differential between two currencies

•You can gain value in the exchange rate

Why We Can Trade Currencies

Until the advent of the internet, currency trading was really limited to interbank activity on behalf of their clients. Gradually, the banks themselves set up proprietary desks to trade for their own accounts, and this was followed by large multi national corporations, hedge funds and high net worth individuals.

With the proliferation of the internet, a retail market aimed at individual traders has sprung up that provides easy access to the foreign exchange markets, either through the banks themselves or brokers making a secondary market.

Forex Risk

Confusion exists about the risks involved in trading currencies. Much has been said about the interbank market being unregulated and therefore very risky due to a lack of oversight. This perception is not entirely true, though. A better approach to the discussion of risk would be to understand the differences between a decentralized market versus a centralized market and then determine where regulation would be appropriate.

The interbank market is made up of many banks trading with each other around the world. The banks themselves have to determine and accept sovereign risk and credit risk and for this they have much internal auditing processes to keep them as safe as possible. The regulations are industry-imposed for the sake and protection of each participating bank.

Since the market is made by each of the participating banks providing offers and bids for a particular currency, the market pricing mechanism is arrived at through supply and demand. Due to the huge flows within the system it is almost impossible for any one rogue trader to influence the price of a currency and indeed in today's high volume market, with between two and three trillion dollars being traded per day, even the central banks cannot move the market for any length of time without full coordination and cooperation of other central banks.

Attempts are being made to create an ECN (Electronic Communication Network) to bring buyers and sellers into a centralized exchange so that pricing can be more transparent. This is a positive move for retail traders who will gain a benefit by seeing more competitive pricing and centralized liquidity. Banks of course do not have this issue and can, therefore, remain decentralized. Traders with direct access to the forex banks are also less exposed than those retail traders who deal with relatively small and unregulated forex brokers, who can and sometimes do re-quote prices and even trade against their own customers. It seems that the discussion of regulation has arisen because of the need to protect the unsophisticated retail trader who has been led to believe that trading forex is a surefire profit-making scheme.

For the serious and somewhat educated retail trader, there is now the opportunity to open accounts at many of the major banks or the larger more liquid brokers. As with any financial investment, it pays to remember the caveat emptor rule - "buyer beware!"

Pros and Cons of Trading Forex

If you intend to trade currencies, and regard the previous comments regarding broker risk, the pros and cons of trading forex are laid out as follows:

1. The forex markets are the largest in terms of volume traded in the world and therefore offer the most liquidity, thus making it easy to enter and exit a position in any of the major currencies within a fraction of a second.

2. As a result of the liquidity and ease with which a trader can enter or exit a trade, banks and or brokers offer large leverage, which means that a trader can control quite large positions with relatively little money of their own. Leverage in the range of 100:1 is not uncommon. Of course, a trader must understand the use of leverage and the risks that leverage can impose on an account. Leverage has to be used judiciously and cautiously if it is to provide any benefits. A lack of understanding or wisdom in this regard can easily wipe out a trader's account.

3. Another advantage of the forex markets is the fact that they trade 24 hours around the clock, starting each day in Australia and ending in New York. The major centers being Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London and New York.

4. Trading currencies is a "macroeconomic" endeavor. A currency trader needs to have a big picture understanding of the economies of the various countries and their inter connectedness in order to grasp the fundamentals that drive currency values. For some, it is easier to focus on economic activity to make trading decisions than to understand the nuances and often closed environments that exist in the stock and futures markets where micro economic activities need to be understood. Questions about a company's management skills, financial strengths, market opportunities and industry specific knowledge is not necessary in forex trading.

Two Ways to Approach the Forex Markets

For most investors or traders with stock market experience, there has to be ashift in attitude to transition into or to add currencies as a further opportunity for diversification.

1. Currency trading has been promoted as an "active trader's" opportunity. This suits the brokers because it means they earn more spread when the trader is more active.

2. Currency trading is also promoted as leveraged trading and, therefore, it is easier for a trader to open an account with a small amount of money than is necessary for stock market trading.

Besides trading for a profit or yield, currency trading can be used to hedge a stock portfolio. If, for example, one builds a stock portfolio in a country where there is potential for the stock to increase value but there's downside risk in terms of the currency, for example in the U.S. in recent history, then a trader could own the stock portfolio and sell short the dollar against the Swiss franc or euro. In this way the portfolio value will increase and the negative effect of the declining dollar will be offset. This is true for those investors outside the U.S. who will eventually repatriate profits back to their own currencies.

With this profile in mind, opening a forex account and day trading or swing trading is most common. Traders can attempt to make extra cash utilizing the methods and approaches elucidated in many of the articles found elsewhere on this site and at brokers or banks websites.

A second approach to trading currencies is to understand the fundamentals and the longer term benefits, when a currency is trending in a specific direction and is offering a positive interest differential that provides a return on the investment plus an appreciation in currency value. This type of trade is known as a "carry trade." For example, a trader can buy the Australian dollar against the Japanese yen. Since the Japanese interest rate is .05 % and the Australian interest rate last reported is 4.75%, a trader can earn 4% on his trade.

However, such a positive interest needs to be seen in the context of the actual exchange rate of the AUD/JPY before an interest decision can be made. If the Australian dollar is strengthening against the yen then it is appropriate to buy the AUD/JPY and to hold it in order to gain in both the currency appreciation and the interest yield.

Bottom Line

For most traders, especially those with limited funds, day trading or swing trading for a few days at a time can be a good way to play the forex markets. For those with longer-term horizons and larger fund pools, a carry trade can be an appropriate alternative.

In both cases, the trader must know how to use charts for timing their trades, since good timing is the essence of profitable trading. And in both cases, and in all other trading activities, the trader must know his or her own personality traits well enough so that he or she does not violate good trading habits with bad and impulsive behavior patterns. Let logic and good common sense prevail. Remember the old French proverb, "Fortune favors the well prepared mind!"