SingTel aims to break StarHub’s cable TV hold

SingTel aims to break StarHub’s cable TV hold
Its mio TV offers Hollywood movies at same time as DVD release
By SIOW LI SEN
SINGAPORE Telecommunications yesterday unveiled its pay-TV with a big bang - and vowed to break the dominance of rival StarHub which has been offering cable TV since 1995.
‘We change the game and offer choice, flexibility’
 
 
SingTel’s service starts today with several firsts in an effort to end StarHub’s monopoly. But will it turn Singaporeans on?

SingTel Singapore chief executive Allen Lew said that its ‘mio TV’ will offer the island’s first Cantonese movie channel, blockbuster Hollywood movies at the same time as their DVD release and total flexibility in price plans.

And mio TV will be cheaper than StarHub, he said. The basic monthly subscription starts at $16.05 and comes with a free set-top box, versus StarHub’s $24.68 plus extra for its set-top box.

‘Until now, there has been only one supplier,’ MrLew said yesterday. ‘Consumers have been forced to accept the incumbent’s offering. Today, we change the game … and offer choice and flexibility.’

mio TV will have 33 channels, including the current seven free-to-air channels. Mr Lew would not reveal the cost of content agreements signed with several parties including BBC Global Channels, Mei Ah TV for Cantonese movies, Sony Pictures Television and Walt Disney Television International.

But margins in the Singapore telecoms business ‘will fall from the high 40s (in percentage terms) to the mid-40s due to the acquisition of content’, he said.

He declined to say when SingTel would break even on pay-TV but disclosed that it would spend $30 million on a network upgrade in the first year of operation.

SingTel aims to lead the pay-TV market within a reasonable time, he said.

The service will be available in 85 per cent of homes here, rising to more than 90 per cent by early 2008.

‘The cost of setting up the service will be more than the earnings,’ Sachin Mittal, an analyst at DBS Vickers Research in Singapore, said in a Bloomberg report. ‘It’ll take four, five years to break even. They are looking at this more in terms of a bundled offering and taking a long-term view.’

StarHub, which began offering cable TV in June 1995, had 490,000 subscribing households as at end-March.
Source : Business Times - 22 Jul 2007

Good times roll for the Great Singapore Sale

Good times roll for the Great Singapore Sale
Smiles all round as big buying season winds down
By VINCENT WEE

(SINGAPORE) To get a sense of the sentiment driving retail markets, consider this: even companies that did not offer discounts during the Great Singapore Sale (GSS) saw their goods moving faster. Those that did take part in the sale saw an extra booster going for them; they saw more big-ticket items being snapped up as savvy shoppers jumped in ahead of the hike in the goods and services tax (GST) midway through the sale.
Local brand Charles & Keith said sales grew by 10-20 per cent during the period even though it did not offer discounts. ‘The buying mood is there anyway because the economy is doing well,’ said corporate communications manager Lau Tse Ling.

Likewise, high-end watch retailer The Hour Glass also reported good sales even though, due to the nature of the watch retail business, specific discounts for the nation-wide sale are not the norm. Executive director Michael Tay said sales for the April-June quarter, which takes in part of the sale period, have been ‘absolutely stellar’.

Consumer electronics specialist Audiohouse saw sales growing by 30 per cent compared to last year, said managing director Alvin Lee. While Audiohouse did offer discounts like its 1-D Sale, linked to lottery ticket winning numbers, Mr Lee noted a clear trend towards purchases of big-ticket items like plasma TV sets and higher-end audio equipment. Rising affluence and the growing demand for new technologies like high-definition television sets also played a part in this, said Mr Lee.

Jewellery chain Goldheart’s assistant brand manager Gary Goh added: ‘This year has been quite good.’

Other big retailers like Tangs said sales increased 11 per cent at its Orchard Road store.

Malls also saw more sales of expensive items driving up overall numbers. Capitaland’s Funan DigitaLife Mall, which specialises in IT products, saw its sales rise by 30 per cent compared to the same period last year.

Likewise, while upscale mall Wisma Atria reported a 10 per cent increase overall, jewellery and watch tenants enjoyed the strongest increases, according to Amy Lim, assistant general manager at Macquarie Pacific Star Property Management, which manages the mall. She said there was possibly a last-minute shopping surge before the GST hike on July 1.

Frasers Centrepoint Malls senior advertising and promotions manager Andre Lobo said that shopper traffic increased by 15-20 per cent. ‘The exciting offers and discounts from retailers coupled with our late-night shopping programmes and activities have been very well received,’ he said.

Some malls, however, did miss out on the overall sales boom. Among its portfolio of 13 malls, Capitaland said Tampines Mall, Junction 8 and Plaza Singapura reported an average of about 5 per cent growth - possibly slowed by enhancement works there during the sale.

The tourist dollar also continues to figure strongly in the Great Singapore Sale figures. Reports from the various mall operators suggest an increase of almost 50 per cent, based on claims for GST refunds. This was consistent with earlier-released MasterCard credit card figures showing tourism spending in June was up 57 per cent over the previous period.

‘We are glad to see an increase in tourists shopping in our stores and positive response to the late-night shopping during the weekends,’ added Tangs senior marketing and communications manager Lin Pei Hua.

While the sale closes on July 22, Singapore Retailers Association executive director Lau Chuen Wei said that ‘anecdotal indications are that the news of a rosy economy has contributed to heavier shopper traffic and retailers have also indicated good performance as soon as the GSS started’.

Source : Business Times - 22 Jul 2007

Ways to pay for that overseas home

Ways to pay for that overseas home 
Eyeing that trendy apartment on the banks of the Thames in London but not sure how to get a mortgage for it? Bryan Lee uncovers financing answers for homebuyers with their sights set beyond the shores of Sentosa Cove
SECURING a home loan is a pretty straightforward affair for a local property, but once you venture further afield for that beachside hideaway or Paris pied-a-terre, things can get seriously complicated.
Beyond the usual considerations of interest rates, credit limits, loan tenures and affordability, buyers of overseas property need to deal with a number of other issues.

Foreign exchange risk is probably at the top of the list, but the rules and policies governing property ownership and financing often differ from country to country.

Also, processing fees are common for these mortgages.

Then there is the key question: Where do you get these loans in the first place?

The giddy rush of securing that prime unit with the perfect seaview might prompt many to sign up with the first bank that comes along. This could be the financier recommended by the agent selling the house or the lender with a booth at the property fair.

Well-heeled investors who have established themselves as favoured bank clients will probably be able to call on their private bankers to arrange a plethora of financing options.

But for the less privileged, a little knowledge can go a long way and help is at hand if you know where to look.

Mortgage brokers such as Mr Dennis Ng, who founded the loan consulting portal HousingLoanSg.com, can offer advice on the best route to take - and it is free as brokers earn their keep from the banks.

Global banks with outlets in Singapore such as Standard Chartered (Stanchart) and Lloyds TSB offer ‘one-stop shop’ services to anyone interested in an overseas home loan.

Stanchart mortgages head Elaine Heng says the bank can offer housing loans in many markets around the world through its international network.

Singapore bank United Overseas Bank (UOB) has been making a push offshore since the start of the year, aggressively marketing home loan packages for properties in Malaysia, Thailand and Shanghai.

Property experts say there are essentially three forms of financing available for those eyeing homes overseas.

Each has its pros and cons, and availability differs across geographies and across banks.
Borrowing local overseas

TAKING out a mortgage in the country where the property is located is probably the most straightforward route.

Many foreign banks, such as Australia’s ANZ, have offices in Singapore and should at least be able to help buyers get in touch with mortgage managers in their home bases.

International bank Stanchart goes a little further by handholding customers throughout the entire application process. And it can do this for loans taken in any country in which it has a retail banking operation.

Interest rates, terms and conditions would probably be fairly similar to those offered to local buyers and the loan would be secured against the newly purchased property.

As a foreign buyer, you might find yourself offered a smaller credit limit than a local buyer would. But 70 to 80 per cent of the property’s worth seems to be the typical cap.

A quick click on the websites of the country’s banks can yield a preview of what financing costs might be like. British and Australian banks, for instance, give fairly detailed information about their mortgage packages.

If the property is to be rented out, a local mortgage makes for a neat solution as the rent collected can be used directly to repay the loan.

This eliminates foreign exchange risk, and in high-tax regimes such as Britain and Australia, mortgage interest can be used to reduce taxes on rental income, said Savills Singapore’s property consultancy director, Mr Ku Swee Yong.

But obtaining a local mortgage might become progressively harder, said Lloyds’ deputy Singapore head, Mrs Suzanna Lee.

She said British banks, for example, have become stricter in their loan approvals because of heightened vigilance against money laundering and terrorist financing since the 2001 attacks.

And Thai banks have long been barred from issuing mortgages to foreigners.
Multicurrency offshore loans

OFFSHORE loans offer much more flexibility, which can translate into convenience and savings.

Such mortgages are provided by local and foreign banks in Singapore, and generally offer a number of currency options for repayment.

A mortgage for a sprawling homestead in Perth could, for example, be repaid in Singapore dollars. In many instances, the lender lets the customer change his repayment currency several times over the term of the loan to help offset exchange rate movements.

Lenders providing such loans include ANZ, Lloyds, Stanchart and the Royal Bank of Scotland. Each has a restricted list of countries for which they offer the service.

As with basic mortgages taken in the foreign country, the overseas property acts as the collateral, an arrangement that offers a number of advantages.

Interest rates are tied to the currency in which repayment is made. This means homebuyers might pay less interest than if they had taken a local loan in the country.

According to the Lloyds website, the interest rate for a British property loan can vary, ranging from 1.88 per cent if repaid in yen to 9.52 per cent if repaid in New Zealand dollars.

If Singdollars are used, the 3.79 per cent interest rate easily beats local rates charged to Britons of about 7 per cent.

Beyond the potential interest rate savings, offshore mortgages allow the canny investor to take advantage of currency movements.

For example, a customer could exploit the Singdollar’s depreciation against the Australian dollar.

A loan of A$100,000 (S$131,590) taken in Singdollars years ago when the Singapore and Australian currencies were on a par would in effect be worth A$75,000 (S$98,693) today, so a switch to Australian dollar repayment using rent collected from the Australian property would yield handsome savings.

Of course, savings can turn into extra costs if you get it wrong.

As a general principle, homebuyers are advised to pick either the currency of the country they are buying the property in, or the currency they are paid in, said Lloyds’ Mrs Lee.

Offshore loans are also the only way to obtain a mortgage to buy that luxury condo in Bangkok. In Singapore, the service is available only at UOB and Bangkok Bank.
Pledging Singapore assets

ASSET-RICH Singaporeans have yet another option.

If you have a home in Singapore that is paid up to some degree, you can take out an equity loan and secure it against that property.

This is not strictly a mortgage as the money raised can be used for non-property-related purposes.

But this option can come in handy when buying homes in restricted markets such as Thailand.

It can also help investors achieve full financing for the overseas property if it is taken together with one of the mortgage types described above.

These loans are typically set at the same interest rates that apply to a regular Singapore mortgage.

At today’s average rates of 3 to 4 per cent, equity loans allow investors to take advantage of Singapore’s relatively low borrowing costs.

Another alternative is to use other assets such as fixed deposits, unit trusts or shares as collateral. But the interest rates charged are generally higher for these types of loans.

The credit that can be raised from these financing options is not limited by the value of the foreign property.

For equity loans, the limit is generally set at 80 per cent of the Singapore property’s worth.

This cap would be reduced further by any outstanding mortgage and Central Provident Fund obligations associated with the property.

The greatest disadvantage of these arrangements is the muddying of risk, as the overseas investment could affect your assets in Singapore.

If the foreign investment turns sour, you would suffer the dreaded double whammy if you lost the most permanent roof over your head.
 
Source : Straits Times - 22 Jul 2007