SINGAPORE in RECESSION !!!

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Australian lawmakers attack Singapore ASX takeover

Australian political parties undermine Singapore exchange's $8.3 billion takeover bid for ASX

Rod Mcguirk, Associated Press, On Tuesday 26 October 2010, 11:12 SGT

CANBERRA, Australia (AP) -- Key lawmakers on Tuesday signaled they might scuttle the Singapore Exchange's $8.3 billion cash and shares takeover offer for the operator of the Australian bourse.

Opposition Liberal Party treasury spokesman Joe Hockey raised concerns that the takeover, announced Monday, was not in Australia's national interest while Greens Party leader Bob Brown said he was swayed against the deal by Singapore's human rights record.

The two parties command a majority in the Senate where they could block the deal which has yet to be approved by a range of regulators.

The takeover of Australian Securities Exchange Ltd., the monopoly stock market operator known as ASX, by a company part owned by the Singapore government would create the world's fifth-largest stock exchange company by market value.

Brown said he was concerned by Singapore's human rights record and by the island state's execution of an Australian drug smuggler in 2005 despite Australian government pleas for his life.

"We should tell them nothing doing," Brown told reporters at Parliament House of the deal.

"This is a state that tramples all over freedom of speech, democracy, the rights of oppositions, the ability for public discourse," he said.

Hockey said Singapore competed with Australia for jobs in the financial sector and the government needed to explain how Australia would benefit from a combined stock exchange company headquartered in Singapore.

"We've got to consider carefully, when a monopoly in the Australian market is being bought out by an overseas interest, whether that is in our interest," Hockey said.

Prime Minister Julia Gillard said it would be "highly inappropriate" for the government to comment on the takeover, which has yet to be examined by the government's Foreign Investment Review Board, to judge whether it would be in Australia's interests.

"I believe questions of foreign investment should be looked at through proper processes," Gillard told reporters. "We should be guided by Australia's national interest and our prosperity."

Treasurer Wayne Swan would make the final decision, after receiving the board's advice, on whether the takeover should be allowed.

But the parliament could block the necessary regulatory changes.

The ASX is set to lose its monopoly on operating a stock market in Australia in 2011 and an affiliate of Chi-X Europe is planning to set up a trading system once the monopoly is abolished. Singapore, meanwhile, has long lagged behind Hong Kong and Tokyo as a regional financial center.

The exchange operating company formed from the takeover of ASX would have a market value of $12.3 billion and be responsible for some 2,700 listed companies.

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Controversy grows over SGX’s takeover bid for ASX

By Elena Torrijos – October 27th, 2010

The Singapore Exchange’s S$10.7 billion takeover bid for Australia’s ASX Limited faces a difficult road ahead amid political backlash in Australia and shareholder reservations over the deal.

For the transaction to push through, the Australian parliament, currently controlled by a coalition led by the ruling Labour party, would need to lift the 15 percent ownership cap on the ASX bourse. The Australian Treasury could grant a waiver, but the Business Times reports that this could be stymied if any party demands a vote.

Bob Brown of the Greens Party, a key Labour ally, said he was not supportive of the deal given Singapore’s human rights record and the city-state’s execution of an Australian drug smuggler in 2005.

“This is a state that tramples all over freedom of speech, democracy, the rights of oppositions, the ability for public discourse,” he was quoted in a report by the Associated Press. A few other lawmakers also indicated they were inclined to oppose the takeover.

Aside from regulatory approvals, the merger of the two exchanges will also be subject to shareholders’ approvals. But, already, one SGX shareholder has expressed a negative view over the issue.

Under the deal, SGX will issue new shares and pay ASX shareholders a combination of A$22 or S$28.04 in cash and 3.472 new ordinary SGX shares for each existing ASX ordinary share or equivalent to A$48 per share.

Atsushi Saito, chief executive of the Tokyo Stock Exchange (TSE), was quoted by the Financial Times as saying that the transaction could result in a loss for the Japanese exchange, which is SGX’s second largest shareholder with a 4.9 percent stake. He told the UK paper that if the deal were to push through it would not be “a good story” for Tokyo.

Some analysts said the planned acquisition looked expensive. Gabriel Yap, executive chairman of investment firm GCP Global, said the price of A$48 per share “is too high” as it represents 25 times price-to-earnings ratio while the estimated cost synergies and savings at 20% is higher than that achieved in other mergers and takeovers of other exchanges before.

From the point of view of ASX shareholders, “Christmas has come early,” said Yap.

The SGX-ASX deal aims to create the fifth-largest exchange in the world with a market capitalisation of more than US$12.3 billion and to capitalise on opportunities for growth in Asia-Pacific.The press statement on the proposed merger enumerates other benefits.

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Singapore is least corrupt country in the world: survey

By Ewen Boey – October 27th, 2010

Singapore, along with Denmark and New Zealand, tops a list of countries with the least corruption in the world, according to a global survey by Transparency International (TI).

TI, which is a corruption watchdog organisation based in Berlin, Germany, publishes the Corruption Perception Index (CPI) annually.

It said in a statement, “The surveys and assessments used to compile the index include questions relating to bribery of public officials, kickbacks in public procurement, embezzlement of public funds and questions that probe the strength and effectiveness of public sector anti-corruption efforts.”

The higher their score attained by a country, the lower its corruption; and conversely, the countries with the lower scores are the most corrupt.

Denmark, New Zealand and Singapore achieved scores of 9.3 out of a possible 10. The city-state moved up two places from its ranking last year, when it finished third. Singapore finished 4th in 2007 and 2008.

Of Singapore’s consistent finishes near the top of the list, TI’s head of private sector programmes Francois Valerian told The Straits Times, “Singapore is perceived as a state which has made legislative efforts and enforcement of laws and regulations to fight and curb corruption in the public sector, administration and governmental spheres.”

Ms Juanita Riano, who oversees the ranking, clarified that getting a high ranking in the index “doesn’t mean that a country is corruption-free.”

The other countries in the top 10 are: Finland and Sweden, 9.2; Canada, 8.9; Netherlands, 8.8; Australia and Switzerland, 8.7; and Norway, 8.6.

Japan came in at 17th with a score of 7.8, whereas the United Kingdom and United States came in 20th (7.6) and 22nd (7.1) respectively.

At the other end of the 178-country list, Somalia scored 1.1, finishing below Afghanistan and Myanmar (1.4) and Iraq (1.5).

TI noted in its report that corruption is a big problem in the world and is affecting both developed and developing countries alike.

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What will Singapore’s future be like without MM Lee ???

yahoosingapore – November 9th, 2010

By Seah Chiang Nee

With election buzz rising, Singapore’s talking point these days centres around two questions: What will the future be like without Minister Mentor Lee Kuan Yew?

Will the young generation, whose voting strength is increasing, continue to support the People’s Action Party (PAP) under its present strategies without the founding leader?

An indication may come in the next few months from a benchmark general election possibly without the participation of the 87-year-old Lee for the first time in 51 years.

Still in grief over the recent passing of his wife, Lee is also weakened by a chest infection after a fall in Moscow.

He is likely to recover but will be, in his own words, “a different man” without her.

Under the circumstances, Lee may decide to call it quits when the PAP announces its candidates.

“No one can tell for sure,” said a party insider. “But he has already done so much for the country. He has often said he’ll step down if health forbids him from contributing. Regretfully, I think the time has come.”

If it happens, history will start a new chapter after 51 years of Lee’s powerful presence that helped to shape today’s Singapore.

It will also, for better or worse, lead to major changes after a period of continuity.

The result of the coming polls – as is Singapore’s future – will largely be decided by the younger generation of both leaders and the electorate.

Sensing a turning point, but not sure exactly how the longer term future will turn out, Singaporeans are awaiting the polls with some anxiety.

No date has been announced, but it is widely expected to take place within the next six months.

Foreign Minister George Yeo has already told party activists to prepare for one at the year-end or early 2011. In 2006, the PAP won 82 seats on 66.6% popular votes while the opposition got only two seats, but won one-third of the votes.

Some 47 per cent of the seats were uncontested because there were no opposition candidates, resulting in many PAP MPs winning seats by walkovers.

Critics attribute it to a fear of Lee and his history of detaining or suing his political foes. The Government, however, attributes it to the poor performance of a fractious opposition.

Things will dramatically change in a post-Lee Singapore.

He himself had years ago predicted that after he quits, more and better quality Singaporeans would join the opposition to take on the PAP.

He also said that his successors would have no problem winning the next two elections (until 2016-17), but hinted that they could be voted out if they failed to measure up to rising expectations.

At the moment, the focus is on the ruling party’s self-renewal, like whether Lee and who among the older staunch Cabinet supporters will leave to make way for new blood.

If it follows tradition, a quarter of its current 82 MPs will be replaced by younger men and women.

Even without Lee or the fear factor, the ruling party as the incumbent will still enjoy overwhelming odds over its fledgling rivals, including the power to change rules and the support of a compliant press.

Above all, the party is believed to retain broad support from older, conservative Singaporeans (especially housewives), the wealthy, the vast bureaucracy and upper middle class, who feel “safe” under PAP rule.

Few in this group appear keen to opt for the unknown.

But the same cannot be said of the lower income group, struggling wage earners and young professionals who have suffered from the foreign influx.

“There are many jobless or underemployed people out there who have become despondent and bitter,” one writer opined.

“And young professionals are worried at all times that ‘cheaper’ foreigners will replace them or retard their pay rise.”

Summing up this feeling was a recent letter “Linda” posted on the Internet, which said: -

“My family members were staunch supporters of PAP and Lee Kuan Yew who had improved most Singaporeans’ standard of living through hard work and education.

“But during these past 10 years, I have seen one by one, my siblings, relatives and friends, become jobless. A qualified accountant was told to apply for a job as chambermaid when she approached (an official job help body).”

Linda said she had not believed this could happen, until the past few years, “when I realised that so many foreigners were taking up most of the office jobs, and true-blue Singa­poreans were being displaced”.

“Sorry, Mr Lee and PAP, I have now second thoughts about you. But thanks for the good years some of my generation had gone through – but not now for my children,” she concluded.

Rising discontent will make the approaching election one of the hardest to confidently predict by using past yardsticks.

In the wake of large-scale immigration, which was recently cut down, Singapore is now bigger and divided so much that it is difficult to stereotype its people.

Lee’s old consensus society has disappeared long before him.

Despite this, Lee will leave behind a country that largely works – an efficient, purposeful civil service and a strong infrastructure.

These will probably allow the PAP to retain a mandate for a while with or without Lee.

But with the ground souring, his party will likely lose popularity to a rising, more credible opposition both in votes and the number of seats.

The coming polls will be crucial because it will show how the young will vote and how political upstarts, both in the PAP and in the opposition, will fare when things get hot.

They could throw up a future prime minister.

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Property cooling measures explained

By iProperty.com Singapore – October 29th, 2010

Debate over the government’s recent cooling measures continues to rage.

Here we pick out the four main areas of concern and ask the Chris Koh, director of Dennis Wee Group – one of Singapore’s biggest realtors – to give his professional opinion on how they will affect property buyers and sellers.

1. The Seller Stamp Duty

The Seller Stamp Duty is a government-imposed tax on persons selling their property within a set period. If you bought a property after 20 February 2010 (but before 30 August 2010), you will have to pay the Seller Stamp Duty on it if you sell it within a year. If you bought a property after 30 August, you will have to pay a Seller Stamp Duty if you sell the property within three years of purchasing it.

How much?

The Seller Stamp Duty is 3% of the value of the property minus S$5,400. If you sell in the first year, you pay the full amount, if you sell in the second year, the Stamp Duty is two-thirds the amount, and if you sell it in the third year the the Stamp Duty is one-third the amount.

Example:

If you sell your property at a million dollars, the stamp duty would be S$24,600 (S$30,000 minus S$5,400), which is what you would pay if you sold in the first year. In the second year you would pay S$16,400, and in the third year you would pay S$8,200. Remember, if you bought a property in January of this year, you are not affected and can sell it without any penalty.

2. Housing Loan Limit

On 20 February, financing was brought down from 90% to 80%, so if you sought a housing loan the bank would only loan you 80% of the property’s value. On 30 August, the government further tightened the financing by ruling that if you have an outstanding loan at this time and you wish to purchase another property by taking a loan, the banks will only now loan you 70% instead of 80%. The move is seen as an attempt to encourage financial prudence and not to take on loans beyond their means.

3. Cash Portion Increased

From 30 August, if you have an outstanding loan on a property, don’t wish to sell that property, and choose to buy a second residential property, the cash portion of the payment has been increased from 5% to 10%.

4. No Dual Ownership of Private and HDB Properties

If you buy a private property, and are eligible to buy a HDB, you will be forced to dispose of your private property within six months.

If you bought your HDB before 30 August, you will not be forced to dispose of the HDB because you bought your HDB before the measures were implemented. Of course, if you took advantage of any governmental grants or loans when purchasing your HDB you will have to hold it for five years before you can private property – in order to discourage people from owning a government-subsidised flat and private property at the same time.

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What are Executive Condominiums ???

By iProperty.com Singapore November 8th, 2010

HDB flats house around 80% of Singapores population, but there is one type of HDB housing that actually has more in common with the private than the public market: Executive Condominiums (EC). We look at the advantages and disadvantages of purchasing this uniquely Singaporean form of housing, whos eligible to purchase one, and the various rules and regulations concerning ownership.

What are Executive Condominiums?

The HDB website describes them as being introduced to cater to Singaporeans, especially young graduates and professionals who can afford more than an HDB flat but find private property to be out of their reach. ECs are comparable in design and facilities to private condominiums as they are developed and sold by the private developers. Essentially, an EC has most if not all the facilities of most condos but is a 99-year leasehold rather than a freehold.

Who is eligible to buy an Executive Condominium?

There are a number of criteria purchasers must meet, but first and foremost, applicants would need to be at least Singapore Citizens or Singapore Citizen + Singapore Permanent Resident combo. They must form a family nucleus, in line with those expected of Public Housing Scheme and their household incomes should not exceed S$10,000 per month.

What incentive is there to purchase an EC?

If both applicants are Singapore citizens, they are eligible to receive a S$30,000 housing grant. If the applicants are a Singapore citizen and a PR, they are eligible to receive S$20,000.

What documentation do applicants need to bring with them to the Application process?

Generally, the documents required would be their NRICs, birth certificates, marriage certificates, and latest income statements. Check with your HR at work to ensure that the income statements are what is required by HDB.

What are the advantages of purchasing an EC ?

An Executive Condominium is much more similar to a private condominium, where there are facilities for owners to enjoy, which are usually restricted to residents usage. In addition, purchasers of EC are able to apply and use the Housing Grant for the purchase of the EC unit, if they are eligible and have not not apply for it previously.

Can you rent out your EC?

You cannot rent out the EC during the minimum occupation period (MOP) of the first five years. You can, however, rent out rooms within the EC during this period.

What are the rules and regulations governing selling an EC?

Owners would have to fulfil a MOP of five years. No transaction is permitted before this period is fulfilled. After five years, owners can sell their units to Singapore Citizens and/or Singapore Permanent Resident, and after 10 years they can sell to foreigners. Upon selling an EC, you must wait 30 months before buying any flat directly from HDB.

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SIA hit by massive S$132 million fine

EU fines 11 airlines 800 million euros for air cargo cartel

AFP - Wednesday, November 10

BRUSSELS (AFP) - Europe's competition watchdog hit 11 airlines with nearly 800 million euros in fines Tuesday for running a global cargo cartel that included Air France-KLM, British Airways and Japan Airlines.

"It is deplorable that so many major airlines coordinated their pricing to the detriment of European businesses and European consumers," said European competition commissioner Joaquin Almunia.

The fines, totalling 799.4 million euros (1.1 billion dollars), were slapped on airlines that span the globe, from Air Canada and LAN Chile in the Americas to Cathay Pacific Airways and Singapore Airlines in Asia and Qantas in Australia.

The 11 cargo carriers coordinated their action on surcharges for fuel and security without discounts over a six-year period, between December 1999 and February 2006, the European Commission said.

The cartel covered flights from, to and within the European Economic Area.

The Air France-KLM group was hit with the biggest fine, 310 million euros, of which 183 million euros was for Air France and 127 million euros for KLM. Martinair, which is owned by Air France, was fined 29.5 million euros.

Air France-KLM said it plans to appeal the fine.

"The group will file an appeal against the decision in the EU General Court," it said in statement.

Elsewhere in Europe, British Airways was ordered to pay 104 million euros, Scandinavia's SAS group was fined 70.2 million euros and Luxembourg's Cargolux will have to pay 79.9 million euros.

In Asia, Singapore Airlines was fined 74.8 million euros, Cathay was hit with 57.1 million euros and Japan Airlines will pay 35.7 million euros.

Air Canada must pay 21 million euros while Qantas and LAN Chile got the smallest fines, 8.9 million and 8.2 million euros, respectively.

Five airlines applied for a reduction in the fine, claiming they were unable to pay it, but the commission said none of them met the conditions.

Lufthansa and its subsidiary Swiss International Air Lines escaped a fine under the commission's leniency programme for being the first to provide information about the cartel.

The commission said it dropped charges against another 11 carriers and one consultancy firm which it did not name.

The cartel initially began with contacts between airlines to ensure that worldwide air freight carriers imposed a "flat rate surchage per kilo for all shipments," the commission said.

The cooperation expanded with the introduction of a security surcharge. The companies refused to pay a commission on such surcharges to their clients, the regulator said.

"By refusing to pay a commission, the airlines ensured that surcharges did not become subject to competition through the granting of discounts to customers," the commission said.

SAS also said it would appeal the fine.

"We adamantly maintain that these isolated incidents do not mean that SAS Cargo has been involved in a global cartel," the airline's chief legal officer, Mats Loennkvist, said in a statement.

"We are highly disappointed and strongly contest the considerable level of the fines, which we believe to be disproportionate to SAS Cargos actions."

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Top 10 most expensive houses in Singapore

By PropertyGuru – November 15th, 2010

With the opening of the two casinos and luxury home prices hitting new highs, there’s been a lot of talk about Singapore becoming the Monaco of the East, or a playground for the super rich.

I thought it would be fun to look at the priciest homes on the market, to see whether any had the price tag and cache to be ranked as one of the world’s most exclusive. I used PropertyGuru to filter out the most expensive homes on the market (the prices below are the asking prices).

My findings? Amongst the top ten, all are landed properties and all but one are Good Class Bungalows. And unless you’re a multi-millionaire, you can’t afford one.

Here are the top 10 most expensive homes in Singapore in ascending order (from the least expensive to the priciest):

10. The “cheapest” property on our list is a S$48 million Good Class Bungalow situated along Victoria Park Road. Sitting on 32,088 square feet of freehold land (or S$1,496 per square foot), it has an aged two storey colonial style house with 8 bedrooms, a newly renovated two and a half storey house also with 8 bedrooms, and an outhouse for your staff with 2 maids rooms and a driver’s room. This is better than a buy one get one free deal!

9. For “just” S$48.5 million, you get a stately looking Good Class Bungalow in the Queen Astrid Park area sitting on a massive 40,500 square feet of land (or S$1,198 per square foot). You get 10 bedrooms and 9 bathrooms in this two storey house (enough to house all your visiting friends and relatives from abroad), two swimming pools and a garden. Entrepreneurial types can subdivide the plot of land into two GCBs.

8. In eighth place we have a buy one get one free deal. For S$50.5 million, you get a 32,088 square foot piece of freehold land (or S$1,573 per square foot) located in Victoria Park and zoned as a Good Class Bungalow. Sitting on this land are two bungalows, each 8,000 square feet in size. One has 5+1 bedrooms and the other 4+1 bedrooms.

7. Going for S$52 million, in seventh place we have a tropical style 22,000 square foot Good Class Bungalow located in Bishopsgate, which has 5+1+1 bedrooms, a lovely “matured” garden and swimming pool.

6. Located in the Holland area, this Good Class Bungalow in sixth place is going for S$53 million. It sits on 32,000 square feet of land (or S$1,656 per square foot) and has 5 bedrooms and 16,000 square feet of built up area. The listing doesn’t say much more – if you have to ask, you probably can’t afford it.

5. In fifth place we have a S$55 million dollar colonial style Good Class Bungalow along Leedon Road sitting on 43,927 square feet (or S$1,252 per square foot) of freehold land. You get a relatively small house for your money, with 6 bedrooms and 5 bathrooms being squeezed into “only” 6,000 square feet of built up area. But this is compensated by having a huge garden and your own swimming pool.

4. In fourth place is a S$58 million dollar Good Class Bungalow located in the exclusive enclave of Leedon Park. Situated on 42,000 square feet of land (or S$1,381 per square foot), this 6 bedroom house (17,000 square feet of built up area) has its own lap pool and baby pool. It’s being sold with vacant possession, so if you can cough up the money, you can move in right away.

3. In third place at S$60 million we have a brand new detached house with full sea view in Sentosa. Advertised as the largest landed property you can own on the resort island, this 6 bedroom house sits on 20,000 square feet of 99-year leasehold land (or S$3,158 per square foot) and has a built up area of 19,000 square feet.

2. Coming in second is a S$73 million dollar Good Class Bungalow in Leedon Park. Sitting on 41,852 square feet of freehold land (or S$1,744 per square foot), the house has 16,500 square feet of built up area, which contains 6+1 bedrooms, a wide frontage with two automatic gates, a garage and a swimming pool.

1. And in first place (drumroll please)…For a cool S$90 million, you can pick up a 20,000 square foot Good Class Bungalow sitting on 45,000 square feet of freehold land (or S$2,000 per square foot). Situated along Nassim Road, it is within walking distance to the bustling Orchard Road shopping district. This massive house has 10 bedrooms and 9 bathrooms, and is advertised as being “priced to sell” – to billionaires, that is.

Mr. Propwise is the founder of Singapore property blog www.propwise.sg, which aims to help people make better real estate buying, selling, renting and investing decisions.

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Time to cut-back moi frugal Investments in Marines...

Singapore sees 2011 GDP growth slowing to 4-6 pct

Singapore expects GDP growth to slow to 4-6 percent next year from 15 percent this year

Alex Kennedy, Associated Press, On Thursday 18 November 2010, 9:02 SGT

SINGAPORE (AP) -- Singapore said Thursday that its economic growth will likely slow next year as demand for the island's exports weakens in the U.S. and Europe.

Gross domestic product will likely expand between 4 percent and 6 percent in 2011, down from around 15 percent this year, the Trade and Industry Ministry said in a statement.

The ministry warned that the U.S. economy could slip back into recession next year, while debt problems may continue to dog some European countries.

"The global economy remains vulnerable to several downside risks, notably a reversion to recessionary conditions in the U.S., and concerns of sovereign debt sustainability in the peripheral EU economies," the ministry said.

Singapore relies on manufacturing, financial services and tourism to help boost one of the world's highest standards of living. The city-state of 5 million people has benefited this year from a recovery in global demand for its exports and a surge in visitor arrivals.

The ministry said GDP rose 10.6 percent in the July-to-September period from a year ago, compared with a surge of 19.5 percent in the second quarter, which was the biggest jump since the government began publishing quarterly figures in 1975. The ministry last month had initially reported that the economy grew 10.3 percent in the third quarter.

The economy contracted an annualized, seasonally adjusted 18.7 percent in the third quarter after surging 27.3 percent in the second, the ministry said.

Singapore expects non-oil exports to grow between 6 percent and 8 percent next year, down from a jump of about 24 percent this year, the ministry said.

Loose monetary policy will likely offset high jobless rates to keep developed countries growing slowly next year, the ministry said.

"The advanced economies will grow at a steady but relatively slow pace," the ministry said. "The strength of recovery could be restrained by high unemployment and weak household balance sheets."

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Singapore will not resort to capital controls-Finance Minister

On Monday 22 November 2010, 17:30 SGT

SINGAPORE, Nov 22 (Reuters) - Singapore will not resort to capital controls but stands ready to take extra measures to ensure financial stability and sustainable asset markets amid a rise in capital inflows to the region for higher returns, the finance minister said on Monday.

Tharman Shanmugaratnam told parliament capital inflows to the city-state were "intermediated efficiently" through the domestic financial markets and banking system, saying the impact on asset prices had been contained by current policy tools.

"We are not contemplating introducing capital controls, but will continue to rely on a range of policy tools to ensure that capital inflows do not threaten its financial stability or cause a property market bubble," Tharman said in a speech.

Tharman was responding to questions by lawmakers on the impact of the U.S. Federal Reserve's $600 billion "quantitative easing" plan on Singapore's asset prices and inflation.

Home prices in Asia have soared in recent months, fuelled by the region's rapid economic recovery and ultra-low interest rates.

Singapore announced restrictions to cool its residential market on Aug. 30, which included a reduction in the amount those with existing mortgages could borrow to buy second properties and extending a stamp duty on those selling property within three years of purchase.

Tharman said the measures had some "calming effect" on the property market and the government, while monitoring the situation closely, would take additional steps, "if necessary".

Singapore widened the trading band for the Singapore dollar in October for the first time since just after the September 2001 attacks on the United States, underlining the depth of its concern about volatility in the global financial markets.

On inflation, the government said inflation was expected to accelerate over the new few months, hitting 4 percent at the end of the year, given the spate of global weather-related supply disruptions and Singapore's tightening labour market.

But the full year inflation in 2010 would stay within the official range of 2.5-3.0 percent and 2-3 percent in 2011, S. Iswaran, Senior Minister of State, Ministry of Trade and Industry, said in parliament.

Singapore's annual inflation in September was at 3.7 percent, the highest since January 2009. But the consumer price index (CPI) in the first nine months of 2010 rose by an average 2.4 percent over the same period a year ago.

(Reporting by Nopporn Wong-Anan)

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’1,000 foreigners invested S$1.5 billion to be S’pore PRs’

By yahoosingapore – November 23rd, 2010

Call it the price to pay for wanting to live in Singapore.

Trade and Industry Minister Lim Hng Kiang has revealed that some 1,000 foreign investors have invested over $1.5 billion under the Global Investor Programme (GIP) to become permanent residents of the city-state.

These investors come mostly from North-East Asia and South-East Asia and they have either poured money into an approved investment fund or directly in a business in Singapore.

Close to 100 have invested directly in businesses ranging from engineering, R&D, shipping, asset management and services and trading, thereby creating some 1,500 jobs.

Minister Lim was replying to a question from West Coast GRC MP Ho Geok Choo in Parliament on Monday.

The GIP is aimed at attracting wealthy businessmen to set up business or invest in Singapore and to settle on the island. Mr Lim said from Jan 1, a minimum investment of $2.5 million is required to qualify for the GIP.

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Why ERP rates were increased: Transport Minister

By Ion Danker November 23rd, 2010

Transport Minister Raymond Lim says the reason for increased charges at 23 Electronic Road Pricing (ERP) gantries is due to traffic speeds on the relevant roads falling below the optimal range after a regular review.

According to The Straits Times, Mr Lim replied to questions from MPs Cynthia Phua (Jalan Besar GRC) and Irene Ng (Tampines GRC) in Parliament and said that ERP rates are adjusted up or down, when needed, to ensure traffic speeds are maintained within the optimal speed ranges of 45 to 65 kph for expressways and 20 to 30 kph for other roads.

They are calibrated to allow the optimal number of vehicles on the roads while ensuring that traffic flow does not degenerate into start-stop situations, said Mr Lim.

The Land Transport Authority (LTA) reviews the ERP rates on a quarterly basis in February, May, August and November and during the June and December school holidays.

Mr Lim went on to explain that in the recent fourth quarter review where ERP rates were raised for some half hour timeslots, LTA had carried out traffic speed measurements of the relevant roads over a 2-week period in October. The data found that traffic speeds had fallen below the optimal range.

He added that since they started monitoring these speeds six years ago, the authorities have been able to keep at least 95 per cent of Singapores road network within the optimal range during the morning peak hours.

The regular reviews of ERP rates provide a self-adjusting mechanism, based on prevailing traffic conditions, to ensure that ERP continues to be effective in maintaining smooth traffic flow on our roads, he said.

When asked by Madam Cynthia Phua if the review should reflect the higher traffic due to population growth, Mr Lim said this is not prudent as the optimal speed ranges are determined based on the physical capacity of the roads.

Allowing a lower speed threshold because of an increase in our population would simply lead to poorer service levels on roads and more widespread congestion, as the physical capacity of the roads remain unchanged.

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Where are the Job Application form ???

Citigroup to expand Singapore presence, to hire hundreds

Tuesday 23 November 2010, 18:21 SGT

SINGAPORE, Nov 23 (Reuters) - Citigroup said on Tuesday it planned to expand its Singapore presence by hiring a few hundred people in each of the next two to three years, further cementing its position as the city-state's largest financial sector employer.

Citi currently employs about 8,800 in Singapore, more than the 7,000-plus staffers on the payroll of DBS Group , the Southeast Asian country's largest homegrown lender by assets.

Singapore has the largest employee base for Citi in the Asia-Pacific region, exceeding the number employed in both Hong Kong and Tokyo, a Citi spokeswoman said.

Citi also said on Tuesday it will relocate its corporate office in Singapore to Asia Square, a new development by property investor MGPA in the city-state's new downtown.

"Asia Square will also be home to Citi's largest trading floor by headcount in Asia Pacific, given Singapore's role as the regional hub for Citi's global markets business," the U.S. bank said in a statement.

(Reporting by Kevin Lim)

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MONEY$$$ GOT MORE THAN ENUFF !!!

SITEX breaks record sales, attendance

By yahoosingapore – November 29th, 2010

The four-day SITEX show at the Singapore Expo drew in a record crowd of over 900,000 people who splashed out over S$52 million on gadgets and IT peripherals.

According to The Straits Times, visitor attendance and spending numbers were the highest in five years. Last year, 859,000 visitors turned up spending $48 million.

Show organiser Singapore Infocomm Technology Federation also said this year’s show had the biggest-ever exhibitor turnout, with 44 new exhibitors coming on board. In total, about 160 exhibitors participated in the fair.

Some of the hot-ticket items during the fair which lasted from Thursday to Sunday were tablet computers, Global Positioning System (GPS) navigation systems and digital cameras.

[kueytoc]

SIGH !...moi dreams of E250 CGI BlueEFFICIENCY (A) fades away...

COE car prices skyrocket

By Ewen Boey – December 8th, 2010

COE premiums have skyrocketed in the latest round of bidding, with a staggering jump of S$14,612 for cars over 1,600cc.

This brings the total premium for that category to S$62,502.

Prices for the Open Category was up S$15,010 to S$64,900.

For smaller cars 1,600cc and below, the price rose S$8,604 to S$47,604.

These latest prices are the highest since 2000.

Goods vehicles and buses saw COE premiums increase S$799 to S$32,001, while motorcycle premiums rose S$200 to S$1,701.

The surge in COE prices may be attributed to the current high demand for vehicles before the upcoming COE quota cut, which will commence from February 2011.

[kueytoc]

WAH !...can buy more GEMsters.

UPDATE 1-Singapore dlr seen up 6 pct vs US dlr by end-2011-MAS survey

On Wednesday 8 December 2010, 13:55 SGT

By Kevin Lim

* Singapore economy likely to grow by 5.1 pct next year

* CPI to rise by 2.9 pct in 2011 from 2.8 pct in 2010 (Updates with analysts' comments)

SINGAPORE, Dec 8 (Reuters) - The Singapore dollar could appreciate by about 6 percent against the U.S. dollar by the end of next year, the central bank said in a survey of economists released on Wednesday, and analysts said the findings implied the monetary authority would maintain its tight policy stance.

The Monetary Authority of Singapore (MAS) said the median estimate of 22 private sector economists was that the Singapore currency will strengthen to S$1.24 to the dollar from S$1.29 at the end of 2010.

The Singapore dollar is currently around S$1.31. It has gained some 7 percent so far this year, buoyed by the country's strong economic performance and a broader push by global investors into higher yielding emerging market assets.

"The 1.24 level will be reached without any further tightening by MAS as current policy is for an appreciation and regional currencies are expected to continue appreciating against the dollar," said David Cohen, director of forecasting at Action Economics.

Singapore manages monetary policy by letting its currency strengthen or weaken against a basket of currencies. In October, MAS tightened policy further by saying it will allow the Singapore dollar to appreciate at a faster pace.

Its next policy meeting will be in April.

Philip Wee, senior currency analyst at DBS, said he expects MAS to let the local dollar rise by about 3 percent against its currency basket over the next 12 months and that the U.S. dollar exchange rate will depend on movements in the broader market.

Cohen and Wee both said inflation in Singapore appeared under control for now and MAS was unlikely to tighten policy further barring a sharp rise in inflationary expectations.

In the survey, economists also forecast the city-state's gross domestic product (GDP) will expand by 5.1 percent next year, down from a forecast 15 percent in 2010, while inflation will edge up to 2.9 in 2011 from 2.8 percent this year.

The 5.1 percent median estimate is within the government's 4-6 percent growth forecast for 2011.

Singapore will likely be the world's fastest-growing economy this year, helped by a rebound in manufacturing and financial services as well as contributions from its two new multi-billion-dollar casinos.

Having bounced off a low base this year, next year's growth will revert to levels consistent with that of a high-income economy in fast-growing Asia.

The private sector economists polled by MAS expect the city-state's consumer price index to rise by 2.9 percent next year, marginally more than the forecast 2.8 percent this year.

Economists surveyed by MAS also made the following projections:

2011 2010 GDP (pct growth) 5.1 15.0 Non-oil domestic exports (pct 12 24 growth) CPI (pct increase) 2.9 2.8 Unemployment (end of period, 2.0 2.1 seasonally adjusted) Exchange rate (S$ per US$) 1.24 1.29 median estimates

The MAS Survey of Professional Forecasters provides a summary of forecasts of Singapore's key economic indicators by economists and analysts. The survey is conducted every three months and follows the release of quaterly economic data by the Ministry of Trade and Industry.

(Editing by Kim Coghill) (Reporting by Kevin Lim)

[kueytoc]

Small units enjoy strong demand

Propertyguru - Thursday, December 9

The number of transactions for residential units below 500 sq ft rose to 625 in the third quarter from 349 in the previous quarter, according to the latest report from DTZ Research.

Of the 625 units, 87 percent were acquired from property developers, which reflects the current trend among developers to offer units with digestible quantum.

Small units have been gaining in popularity amongst buyers since "mickey mouse" flats picked up last year, said Chua Chor Hoon, Head of DTZ South East Asia Research. "The recent cooling measures, which increased the minimum cash payment, will make such units even more attractive as buyers have to downsize their purchases without having to increase the cash component," added Ms. Chua.

The proportion of non-landed sub-sales to total non-landed transactions stood at 11 percent in Q3, slightly up from 10 percent in Q2. The sub-sales level has stabilised from 9 percent to 12 percent since the first set of cooling measures in September 2009, when the interest only loans and interest absorption scheme were removed.

The sub-sales level will likely remain low as prices are not escalating at a fast pace to justify flipping in a year, said Ms. Chua. The market is also flushed with liquidity from the low interest rate environment, with many home buyers looking to put more money into properties and buying with a longer-term holding time horizon in mind.

"For uncompleted properties, the buyers will decide whether to sell or hold for rental when the units are nearer completion," said Ms. Chua.

DTZ's analysis also revealed that the proportion of transactions in the prime districts of 9 to 11 declined from 25 percent in Q1 to 16 percent in Q3. The fall was attributed to both the dearth of new project launches in prime areas and the rise in homes for sale outside the prime areas.

More from PropertyGuru: Sim Lian tops Punggol bid DPS option still available for ECs Sim Lian plans unique condo project in Punggol Singapore the top property investment destination Singapore, HK most attractive property markets in Asia

[kueytoc]

Property market outlook for 2011: All eyes on the HDB market

By PropertyGuru – January 5th, 2011

By Khalil Adis (courtesy of PropertyGuru)

Rising prices of public flats will be a hot elections issue. However, it remains to be seen if the cooling measures have actually worked.

With elections expected to be called sometime in 2011, all eyes are on the HDB market to see if the cooling measures implemented by National Development Minister Mah Bow Tan have actually worked.

Last year, a slew of property curbs were introduced to both the private and public housing markets.

In August, specifically, the government finally intervened to cool the HDB market after much outcry from the public. Many Singaporeans believe the price spikes are caused by permanent residents (PRs) who are eligible to buy resale HDB flats.

According to a report by the United Nations, 40 percent of Singapore’s population is now made up of foreigners.

Fears of a property bubble forming in the HDB market are very real.

Last July, a HDB flat reached the million-dollar mark when a Singaporean couple paid S$1.1 million for a Bishan flat.

This is some $200,000 more than the official valuation.

The rising prices of HDB flats is fast becoming a “hot potato” for the government as 80 percent of Singapore’s population can only afford to buy public flats.

“There’s no denying that the recent measures are an election move to placate the public to show that the government is doing something,” says an analyst who wishes to remain anonymous.

Minister Mah confirmed this recently during an interview with the TODAY newspaper.

“If you ask me whether it has got anything to do with the elections, the answer is yes. Everything has got to do with the elections,” he was quoted as saying.

Prices still rising

Despite the cooling measures, property prices are still rising.

Flash estimates for the fourth quarter from the Housing Development Board (HDB) shows the Resale Price Index (RPI) is set to rise 2.4 percent to reach 171.9 points.

Prices of HDB resale flats had been increasing steadily from the second quarter of 2003.

Taking the flash estimates into consideration, HDB prices have now gone up by almost 70 percent compared to the said period in 2003.

Meanwhile, in the private sector, the property price index climbed to yet another record high.

Flash estimates from the Urban Redevelopment Authority (URA) show private home prices are expected to inch up 2.7 percent to reach 194.8 points.

Transactions and COVs dropping

While prices are still rising, the volume of resale transactions and Cash-Over-Valuation (COV) that buyers of resale HDB flats have to pay, have dropped.

According to PropNex, HDB resale transactions dropped 50 percent the week after the new rules were introduced.

Meanwhile, median COVs have dropped in the fourth quarter.

“According to our monthly transactions for the fourth quarter, overall median COV levels have dropped from $30,000 in the third quarter to $26,000 in October, $23,000 in November and $20,000 in December, in line with HDB’s flash estimate of a drop to $23,000 for the quarter. This is an indication that the overall median COV level for the country for the fourth quarter, which will be released on 28 January 2011, should fall by about 23 percent quarter-on-quarter,” says PropNex’s chief executive officer, Mohamed Ismail.

Too early to tell

Despite the rising prices, analysts say the fourth quarter’s flash estimates are not truly representative on the impact of the cooling measures.

“Although these figures indicate yet another all-time record for both the public and private housing markets, it is important to note that the growth is indeed slowing down and attaining more sustainable levels,” says Mohamed Ismail.

Others say external factors like an economic crisis will have a much more severe impact to cause property prices to drop rather than government intervention.

“When the economy is buoyant, credit is easy and positive sentiments are strong, it is difficult for government measures to have a substantial impact. At most, such measures will slow down the transaction volume and moderate the increase in prices or at most cause a temporary fall in prices depending on the severity of the measures,” says Chua Chor Hoon, Head of Southeast Asia Research for DTZ.

In a recent media interview, Minister Mah said it will take a few more months before the full extent of the August changes are felt.

Analysts also agree saying it is too early to tell.

“The measures cannot be said to be ineffective, as we have yet to see a full quarter with the measures’ impact. On the ground, we have already heard of a softer market with speculative investors pulling out, and even investors in the high-end market are quieter, as evidenced by the low number of private residential transactions in September 2010 with a median sale price of at least S$2,000 per sq ft,” says Adam Tan, corporate communications manager of PropNex.

Chua said prices are likely to stabilise within six to 12 months, as the public will need to get used to the new measures.

Luxury and rental markets set to rule in 2011

Despite the property curbs, analysts expect the luxury and rental markets to strengthen in 2011.

“The luxury market will hardly be affected simply because a lot of the investors there dabble in private properties. They don’t really touch the HDB market,” says Tan.

In addition, the rental market is expected to strengthen due to the increase in the number of PRs in Singapore.

“As PRs are unable to buy HDB flats, they will need to rent from both the HDB and private property market,” says Chua.

The HDB property curbs have hit PRs the most.

They now cannot buy resale HDB flats without first disposing of their property overseas.

Moving forward, analysts say another round of cooling measures could be introduced depending on circumstances.

“Should there be more desperate buyers than sellers, the government will come up with another round of measures,” says Chua.

[kueytoc]

Same rules for citizen, PR siblings: HDB

By Kai Fong – January 10th, 2011

Disgruntled Singaporeans who felt that the Housing Development Board was biased towards permanent residents (PRs) can finally feel more at ease – the HDB has clarified that homebuyers who are siblings and unmarried, whether citizens or PRs, can apply to buy HDB resale flats if their parents live overseas and do not already own a public flat.

They do not have to be above the age of 35, and their applications will be considered on a case-by-case basis, according to The Straits Times (ST).

The clarifications were made in response to ST’s queries after concerns about the sibling rule surfaced recently in online forums. Some users had noted that unmarried PR siblings above the age of 21 were allowed to buy HDB resale flats whereas Singapore citizen siblings were not.

Under HDB rules, unmarried Singapore citizens can buy HDB resale flats only if they are above the age of 35 under the Singapore Citizen scheme. An exception only occurs when siblings fall under the Orphans Scheme, which allows those below 35 to purchase a resale flat if their parents are dead.

When asked why there was a difference in the way the rules treated citizens and PR siblings, the HDB clarified otherwise – applications from any unmarried siblings above 21 whose parents are alive as long as the parents live overseas and do not own a HDB flat concurrently will be considered on a case-by-case basis.

It did not say how many flats are owned by siblings in such situations, but industry observers noted that such cases are quite rare. Dennis Wee Group director Chris Koh told the same paper that less than 5 per cent of HDB resale flats sold fall into this category.

He added that the perception that more PR siblings are buying HDB resale flats mostly came about because they are more likely to fulfill the requirements.

An escalating number of PRs and foreigners in Singapore has raised much immigration concerns in recent years, particularly with regard to rules and privileges for citizens and PRs.

Already addressing these concerns in March last year, the HDB had made a bigger distinction between benefits for citizens and PRs. New quotas on PR ownership of flats in specific blocks and neighbourhoods were set and it was also noted that a citizen-PR couple will receive S$10,000 less subsidy than a citizen-citizen couple.

Not everyone is appeased by HDB’s clarification, however.

Letter writer Mr Tan, 33, who runs his own health-care business, said he still fears PR siblings will compete with Singaporeans for flats since they are more likely to meet the eligibility criteria.

On the other hand, Dennis Wee Group’s Mr Koh felt the policy was fair as “policymakers must also cater to those PR siblings who have chosen to sink their roots here and buy homes”.

[kueytoc]

Cost of living in S’pore to rise further

By Alicia Wong – January 10th, 2011

The cost of living, driven partly by higher food prices, is expected to soar further in the first three months of this year before moderating, said Finance Minister Tharman Shanmugaratnam in Parliament on Monday.

But he assured the House that the Budget, which is coming next month, will contain measures to help shield Singaporeans from the quickening inflation, reported The Straits Times.

“The Government will take into account the impact of inflation and the needs of low-income and retiree households when considering further transfers,” said Mr Shanmugaratnam. He also hinted that current assistance schemes such as the ComCare Fund may be enhanced.

Inflation in Singapore hit 3.8 per cent in November from a year ago, the largest jump since January 2009.

Meanwhile, Senior Minister of State for Trade and Industry S Iswaran also cautioned that Singapore will have to watch for over-heating and inflationary pressures as the labour market tightens and capacity constraints become more binding.

He said Singapore does not need stimulus measures this year, reported Channel NewsAsia.

Terming last year’s near-15 per cent GDP growth as “exceptional”, Mr Iswaran said the expected four to six per cent growth this year is still above the government’s medium-term growth potential estimate. The estimate is about three to five per cent per annum.

The emphasis going forward with the economy at “full employment”, will be on raising workforce productivity and increasing economic competitiveness over the medium term, he said.

[kueytoc]

Alamak !...cannot buy moi-moi vroom-vroom 'FERRARI' liao...SIGH !

LTA to issue 3 per cent fewer COEs for 6 months

By Ewen Boey – January 10th, 2011

The Government will be issuing fewer Certificates of Entitlement (COEs), said Transport Minister Raymond Lim in Parliament.

The Land Transport Authority (LTA) will make 22,368 COEs available in the six months between February and July — a 3 per cent drop, or 3,728 fewer, from the previous six-month period, reported The Straits Times.

The new figures take into account the LTA’s over-projection of the number of vehicles to be de-registered.

Mr Lim clarified that the remaining 9,577 COEs to be corrected will now be spread over three years instead of just one, after consulting the relevant stakeholders.

The new COE quota will cater for a 1.5 per cent growth at the end of 2010, which was 921,958.

It also takes into consideration replacement COEs for vehicles de-registered in the last six months of 2010, as well as adjustments for over-estimations of vehicle de-registrations in 2008 and 2009.

[kueytoc]

Work till You DROP...???

Manpower Minister addresses concerns over re-employment law

By Alicia Wong – January 12th, 2011

How will the re-employment law be enforced?

This was the concern raised by 14 Members of Parliament who supported the re-employment law, reported The Straits Times (ST).

From Jan 1 next year, employers must offer eligible staff who reach the statutory retirement age of 62 re-employment for three years, until they are 65. Employees must be medically fit and have satisfactory performance.

Madam Halimah Yacob (Jurong GRC), Mr Ang Mong Seng (Hong Kah GRC) and Non-Constituency MP Sylvia Lim asked how medical fitness would be determined.

Minister for Manpower Gan Kim Yong replied, the employer has to prove that a worker is unfit for rehiring past age 62. A medically-fit employee is one whose health would not affect his job performance, he said.

Madam Halimah, Ms Lim and Mr Hri Kumar Nair (Bishan-Toa Payoh GRC) also asked how job performance would be assessed.

Defining ‘satisfactory’ as the minimum level of performance an employee is expected to maintain in discharging his duties, Mr Gan said the assessment could be based on more than one year’s performance.

He said, his ministry would continue to encourage employers to have proper appraisal systems. Employees who feel the assessment was unfair can approach the ministry for help.

Employers who cannot rehire older workers must pay an Employment Assistance Payment. Some MPs were worried employers would use that as a way out to rehiring older workers.

Mr Gan said, the payment should be used as a last resort. He noted, most employers are “responsible” and most older workers who want to work have been able to do so, reported ST.

Responding to concerns that employers may hire contract workers, so they do not need to offer them re-employment, Mr Gan said, only workers whose contracts are tied to a specific project are excluded from the law.

Workers on fixed-term contracts would be covered by the re-employment law so long as their contract is for more than two years, including renewals.

And could employers force workers to turn down a re-employment offer by having unreasonable employment terms?

Mr Gan said, employees in such situations can approach the ministry. If their complaint is justified, the minister could order the employer to offer re-employment or pay compensation.

Mr Gan also stressed, any wage adjustment should be based on reasonable factors, such as performance.

For the small and medium-sized enterprises, which may have difficulty implementing the new law, Mr Gan cited the Advantage Scheme that allows employers to secure a grant of up to S$400,000 to redesign jobs and improve their human resource practices.

[kueytoc]

When will MOI-MOI enjoys moi hard-earned RETIREMENT $$$ ???

:FIREdevil: MPs debate over CPF drawdown age

By Faris – January 12th, 2011

Workers should be allowed to draw down their Central Provident Fund (CPF) savings at the age of 60.

That was the stand of the Workers’ Party (WP) who said that the CPF drawdown age should not also be linked to the retirement age.

On Tuesday, the two MPs from the WP, Mr Low Thia Khiang (Hougang) and Non-Constituency MP Sylvia Lim raised concerns about workers who are not re-employed after turning 62 years old, yet cannot draw on their CPF savings until they turn 65.

According to The Straits Times, while the drawdown age is currently set at 62, the government had earlier announced that it would be raised to 63 next year, 64 in 2015 and 65 in 2018.

In addition, the government will give incentives to those who voluntarily defer their CPF drawdowns.

Speaking during the debate on the Retirement and Re-Employment Act in parliament, Mr Low criticised the new law as “half-cooked”.

He argued that Singaporeans could be left “hanging in the air” – without a job at the age of 62, yet unable to tap their CPF savings.

Ms Lim weighed in, charging that the new law will subject older workers to a “stressful re-employment process” at 62.

She highlighted that the new law applies to those who are already employed when they turn 62, and does not assist those who are unemployed to seek a job at that age.

If the government wants to delay CPF drawdowns till 65, Ms Lim said that “it should at least correspondingly provide for a more seamless transition of employment from 62 to 65”.

Under the new legislation, employers are required to offer re-employment to workers who turn 62.

If they are unable to do so, the worker needs to be compensated with an Employment Assistance Payment to tide him over as he seeks another job.

However, People’s Action Party MP Heng Chee How (Jalan Besar GRC), rebutted the WP’s call to allow drawdowns at the age of 60, calling it unhelpful.

“It would be like saying, you have a bank account. I have no idea how you are going to add money there, but I know you have to spend, so don’t listen to these guys when they tell you how to add more money into your account; just listen to me and go and draw whatever you have and start spending.”

Mr Heng, who is also the deputy secretary-general in the labour movement added that as Singaporeans have longer life spans, there would be a need to provide them with more resources.

Ms Lim later asked Manpower Minister Gan Kim Yong on the possibility to allow drawdowns to start earlier so long as payments could be stretched out over a longer period.

In his response, Mr Gan said it would mean that people would have less to survive on every month. “The better solution is to continue to add on to their savings,” he said.

“That is why Workfare has a CPF component to help to top up. If the worker continues to work, he will be able to accumulate more savings. If he starts his drawdown later, his savings will allow him to last longer.”

Mr Gan also pointed out that the unemployment rate for older resident workers – those 50 and above – remains very low. It was 3.3 per cent in June last year.

Rather than redesign the CPF scheme to cater to this minority, Mr Gan said that it would be better to deal with them on a case-by-case basis and encourage them to look for work.

He added that if they face difficulties coping, they could still be supported by programmes such as the ComCare Fund.

[kueytoc]

Excess Ca$h for Shipment days ???

Government set to post S$6 billion in budget surplus

By Faris – January 13th, 2011

A whopping S$6 billion in budget surplus; that is the amount the government is set to gain after a buoyant economy boosted tax collections last year.

This comes after private economists say that the country could post record revenues hitting as high as S$50 billion, an increase from S$38 billion in 2009. They attribute this to factors such as solid wage growth, strong corporate profits and a sizzling property market.

A surplus is the left over amount from state revenues after taking into account all government spending. A deficit is where there is a shortfall.

Speaking to The Straits Times on Tuesday, Bank of America Merrill Lynch economist Chua Hak Bin and DBS economist Irvin Seah expect the budget surplus to hit a bumper $6 billion.

This is a dramatic reversal from an official government estimate of a S$3 billion deficit, made in February last year. “The booming economy bumped up corporate and personal income taxes, which saw much higher collections compared with the government’s estimates,” said Dr Chua.

Gaming taxes and duties from the integrated resorts are expected to add S$1.1 billion to government coffers, he added. Mr Seah weighed in that the strong property market has also contributed to higher revenues.

They also said that this year, the government could have a considerable war chest for helping people. Especially in assisting the lower-income earners cope with the effects of rising consumer prices.

Other economists, such as OCBC’s Selena Ling and Citigroup’s Kit Wei Zheng, expect government revenues to significantly beat official estimates of S$40.7 billion.

“This pattern of budget conservatism versus actual fiscal outperformance has been a recurrent theme in the past five years,” noted Mr Kit.

If the economy does post an estimated S$6 billion surplus, it would be the second-highest in the last decade and is just short of the S$7.6 billion surplus recorded in 2007.

On the other hand, Dr Chua anticipates that the next general election will be called soon after the Budget – due some time next month – making the next announcement a notable one.

This is because, under the constitution, the government is required to balance the budget books for its entire term, which began in 2007. Savings and surpluses over the term of government will be locked up as past reserves at term-end.

In contrast, any deficits incurred overall will be considered a drawdown on past reserves which can be done only with the president’s consent.

The net position over the past four years could be an overall surplus of S$9 billion to S$12 billion, depending on the final fiscal figures released, said Mr Kit.

“The government can draw down on this term’s past surpluses to announce a generous Budget this time, if it wants to,” he said.

But what is certain is that the money will go towards tackling the income gap and the higher inflation that is expected this year.

Dr Chua also expects that in the Budget, the government will hand out one-off goodies, such as Central Provident Fund (CPF) top-ups and utility and property tax rebates.

But he doubts that the government will give permanent cuts to income and corporate taxes saying this will impact the fiscal positions in the years ahead.

However, economists such as Mr Seah and Ms Ling said the government may want to return the S$4.9 billion it drew down from past reserves in 2009 to pay for the Jobs Credit Scheme.

Due to the effects of the global financial crisis, the government scheme paid for a portion of a local worker’s salary in order to save jobs.

“They don’t have to as it is not a loan. But even if they do, there will be plenty of money left,” said Ms Ling.

[kueytoc]

Why not MOI-MOI ???

Single S’poreans increase among younger age groups

By Kai Fong – January 13th, 2011

More Singaporeans are striking marriage off their checklists, over the past decade at least.

The proportion of singles has risen significantly especially amongst the younger age groups in the last ten years, the Census of Population 2010 revealed.

In the first of a series of statistical releases by the Singapore Department of Statistics (DOS), the report shows an increase from 33 to 43 per cent for males, and from 22 to 31 per cent for females among citizens aged 30 to 34 years. This translates to a 10 per cent and 9 per cent increase respectively.

While singlehood was prevalent among males with secondary qualifications and below, graduate females did not seem keen on getting hitched either.

According to a Channel NewsAsia report, 24 per cent of citizen males aged 40-44 with below secondary qualifications were single in 2010, compared to 13 per cent of university graduates.

For citizen females, 23 per cent of graduates aged 40-44 years old were single in 2010, compared to 11 per cent among females with below secondary qualifications.

Things do not reflect well on the family front either.

The proportion of childless families has seen an increase of 6 per cent – from 14 per cent in 2000 to 20 per cent in 2010, said The Straits Times.

This took place among resident females between 30 to 39 years of age. Similarly, the age group of 40 to 49 years saw an increase from 6.4 per cent to 9.3 per cent during the same period.

An increasing trend of one-child families was also noted.

Among ever-married females aged 40-49, who were likely to have completed child-bearing, the proportion went up from 15 per cent in 2000 to 19 per cent in 2010.

Nevertheless, DOS said families with two children continued to be the norm, with the proportion unchanged at 42 per cent from 2000.

Even so, the DOS said the average number of children born to those aged 40-49 years had declined to 2.02 in 2010, as compared to 2.21 in 2000.

Education could have played a role in this phenomenon. The higher educated females had fewer children compared to their lower educated counterparts.

University graduates had the fewest children by the end of their child-bearing years, with an average of 1.74 children among those ever-married and aged 40-49 in 2010.

Quite the reverse, ever-married females with below secondary qualification had an average of 2.21 children by the age of 40-49 years.