Singapore: A small country with big heart

Singapore: A small country with big heart
By Kavi Chongkittavorn
SINGAPORE is the only country in Asean that uses its National Day to urge people to love the country and improve themselves.
If we just look at it on the surface, Singapore is pretty annoying. But in fact, the country should be praised because its strategies actually ensure that its people are proud and dignified. On National Day, a parade is organised just like in communist countries in the past. Shows by various ethnic groups are performed and the nation’s leader addresses his vision of what the country needs to do to move forward. This year’s theme is City of Possibilities.

The island state has continued to survive and remain wealthy and secure because it makes the impossible possible. For example, when it had a disagreement about water prices with Malaysia, it created an expensive scientific process turning waste water into drinkable water, which was sold at a reasonable price. This proved that the small country has a big heart and a fighting spirit that does not bow to anyone.

The Singapore Government always invites journalists from other Asean countries, including Thailand, to visit Singapore each year.

Education in Singapore is of a higher standard than the rest of Asean. Its education system develops talent systematically, unlike Thailand.

The reality is that Thailand can do nothing. How many years have we talked about education reform and what has been done?

Singapore has the financial resources to attract the world’s best teachers to educate their people to become scientists and academics. Thailand’s best teachers who have received government scholarships to finish their doctorates are often willing to reimburse the government by one or two million baht (S$94,000) in order to teach in Singapore where they get a higher salary.

Moreover, Singaporean society is dynamic and truly multicultural. Different religions are equally accepted and have the same holidays (just like Indonesia, which has more annual holidays than Thailand).

Outsiders do not really see these above points because they are jealous of Singapore’s development and wealth, and are put off by its arrogance.

Singapore always views itself as better than the rest and thinks of itself as the capital city of Asean. But it is the heart of Asia and has the finances so that it is always ready to invest and create jobs elsewhere.

Even wealthy Australia has to concede to capital from Singapore

Source : Straits Times - 25 Aug 2007

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Horizon Towers sellers to discuss options on Wednesday

Horizon Towers sellers to discuss options on Wednesday
By Joyce Teo, Property Correspondent
HORIZON Towers flat sellers will meet next Wednesday in a push to raise millions of dollars to fight a lawsuit by Hotel Properties (HPL) and its partners over a botched collective sale. Another meeting is due to be held on Sept 7.
In a protracted saga, the HPL consortium has been trying to buy Horizon Towers for $500 million, a price inked in February.

But the collective sale hit a brick wall earlier this month when the Strata Titles Board (STB) threw out the estate’s sale application as the paperwork was not in order.

The sale lapsed as the would-be sellers had included an Aug 11 sale deadline in their contract. The HPL consortium then asked flat owners to extend the deadline so the application could be refiled or an appeal could be made for the sale to go through - but the sellers declined.

On Thursday, the buyers filed a High Court lawsuit over the failure of Horizon Towers’ owners to go through with the deal.

A flat owner keen on contesting the lawsuit said: ‘We are going to raise $3 million to $5 million to fight it.’ Each of the 177 units may have to pay about $30,000.

He said they will put this move to the vote at next week’s meeting. But some owners keen to sell the 99-year leasehold Leonie Hill estate are said to be very upset at how the deal has panned out, as they had wanted to extend the deadline so the sale could go through.

‘We never wanted to fight it,’ said one of them.

If the $500 million sale had gone ahead, owners of the 199 apartments would have reaped about $2.3 million each, while owners of the 11 penthouses would have received at least $4 million each.

If the HPL lawsuit succeeds, the majority owners could be forking out a lot more in damages.

HPL and its partners have estimated their lost profits at up to $1 billion. At that rate, owners of the 177 units who agreed to sell could end up paying more than $5 million per unit.

Now, they have two options, observers say. They can either give in and do whatever is necessary to complete the sale or contest it.

The former means the sale goes through at $500 million. They get their proceeds and will probably have to pay some damages.

If they fight, they could start third-party proceedings against other parties involved in the sale process to claim back the damages.

These parties could be the sales committee that represent the sellers, the property agent which marketed the estate and the sellers’ lawyer which usually prepares the sale documents for the STB application.
Source : Straits Times - 25 Aug 2007

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Factory output up 22%, fastest pace in 13 months

Factory output up 22%, fastest pace in 13 months
July manufacturing production beats expectations but electronics still flat
By Erica Tay, Economics Correspondent
SINGAPORE’S manufacturing output grew 21.6 per cent last month - its fastest pace in 13 months and a sharp recovery from June’s slump - to beat expectations.
Market expectations were muted after the manufacturing sector shrank a revised 7.3 per cent in June.

Last month’s output far exceeded the median market forecast of 3.3 per cent growth by economists in a Bloomberg poll.

Economic Development Board (EDB) data released yesterday showed that a sharp upswing in typically volatile biomedical production lifted last month’s factory output.

Output from the biomedical industry - dominated by pharmaceuticals - surged 78 per cent, after falling 45 per cent in June and jumping 75.8 per cent in May.

For the first seven months of the year, manufacturing output was up 8.9 per cent.

‘ ‘Wow!’ would probably be just right to describe July’s manufacturing expansion at first glance,’ said United Overseas Bank (UOB) economist Alvin Liew.

On closer examination, however, the showing by different industries within manufacturing last month was mixed.

Although drug factories rebounded impressively and shipyards rode on a sustained boom in rig and shipbuilding, electronics growth was flat.

Chemical production shrank, while precision engineering and general manufacturing enjoyed modest growth.

The biomedical industry made up a quarter of the manufacturing sector’s contribution to the economy last year, while electronics accounted for nearly 30 per cent.

Electronics production was up only 0.2 per cent last month, as a long-awaited recovery in global tech demand has yet to materialise.

‘Although the semiconductor segment grew 5.2 per cent, the growth was moderated by a slowdown in the other segments,’ the EDB said in its report.

Meanwhile, business continued to boom in all areas of transport engineering.

Marine and offshore players saw a 37.4 per cent rise in output, while aircraft repair and maintenance firms, as well as land transport manufacturers, reported production rises of more than 20 per cent.

So far, output from the transport engineering sector has climbed 28 per cent.

The chemicals cluster, however, suffered a 2.2 per cent drop, largely because some refineries and petrochemical plants were shut last month for planned maintenance work.

Last month’s strong performance is unlikely to be sustainable, argued UOB’s Mr Liew.

‘Should we upgrade based on the excellent July data? We think not, at least not now,’ he reckoned, citing weak export demand, a slower-than-expected tech recovery and the volatile nature of biomedical output.
Source : Straits Times - 25 Aug 2007

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CapitaLand up nearly 15% as business in China grows

CapitaLand up nearly 15% as business in China grows
By Goh Eng Yeow, Markets Correspondent
IT HAS been a good week for CapitaLand, with its shares gaining nearly 15 per cent.
The property giant not only rode on the market’s rebound from one of its worst slumps in 20 years.

It also got a leg up from its growing exposure to China’s property market. The exposure is helping it make its name, literally, in China.

Many dealers believe CapitaLand, with its growing profile, may be one of the first foreign stocks to benefit from any decision made by China to eventually buy into foreign equities.

China said on Monday that its citizens could soon invest directly in Hong Kong stocks.

Many now expect China to liberalise some more by letting its citizens buy regional equities if its ongoing experiment is successful.

This is where firms like CapitaLand will benefit because their names are already familiar among Chinese investors.

The potential is huge. The first wave of Chinese money going overseas has already ignited a property boom in Hong Kong, where mainland Chinese are snapping up upmarket condominiums.

The next wave may well involve buying shares in companies with successful operations in China itself, such as CapitaLand.

Some research houses feel that even on the merits of its China business alone, CapitaLand may be under-priced.

‘We believe the current share price does not reflect the significant progress CapitaLand has made in building its business in China, where it is now the largest foreign real estate group,’ said UBS Investment Research on Wednesday.

CapitaLand, it noted, has 40 per cent of its 8,500 staff in China, with offices in the key cities of Beijing and Shanghai.

UBS also believes that the value of CapitaLand’s China business will become increasingly transparent once it spins off two China residential development businesses as separate listed firms.

Volatile market conditions are also unlikely to affect CapitaLand, given that it has over $4 billion on hand to fund acquisitions.

The stock gained 10 cents to close at $7.35 yesterday.
Source : Straits Times - 25 Aug 2007

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Company directors snap up shares after market correction

Company directors snap up shares after market correction
They see good value and investors consider support to be positive sign
By Lee Su Shyan, Assistant Money Editor
PANIC was the last thing on the minds of many company founders and directors when Singapore share prices slumped in spectacular fashion just over a week ago.
Instead, they have leapt into the fray, buying up their own stock at bargain-basement prices since the Aug 17 market nosedive - which followed weeks of volatility.

Companies have also seen a buying opportunity and are weighing in to buy back their shares on the open market.

The Straits Times Index plunged as much as 190 points on Aug 17 and many directors and companies instantly saw good value.

They were emboldened by the fact that many firms had just turned in creditable second-quarter financial results, indicating that corporate fundamentals were sound.

On average, Singapore-listed firms posted a 39 per cent rise in first-half net profits.

One buyer was one of Singapore’s richest men, Mr Zhong Sheng Jian, chief executive of China real estate developer Yanlord Land. He bought 987,000 shares on Aug 16 at an average price of $2.57 and another one million shares at $2.65 a day later.

Even though he shelled out a hefty $5.2 million over two days, these prices are a far cry from the high of $3.68 per share seen just last month.

Market watchers say insiders sometimes buy in during tough times to inspire confidence in a counter.

Mr Kevin Scully, managing director of boutique corporate finance firm NRA Capital, said: ‘Sometimes, this buying is a show of support for the company. It is a good sign because investors want to see support.’

Another bargain-hunter was luxury property developer SC Global chairman and chief executive Simon Cheong, whose wife bought 100,000 shares on Aug 17 at $4.755 apiece, well below the record $6.75 seen last month.

Other key shareholders in the market during this recent turmoil include Yellow Pages director Stanley Tan, who has just emerged from a boardroom battle. He bought 200,000 shares at $1.197 apiece on Monday, another 350,000 units at $1.196 on Tuesday and yet another 200,000 shares on Wednesday at $1.19. The counter has not closed below $1.20 since last November.

Sino-Environment’s chairman and chief executive, Mr Sun Jiangrong, also showed support for his firm, buying 900,000 shares at $2.44 on Tuesday. In April, the waste- treatment firm’s shares hit a peak of $3.78.

Company directors were also in the action. Mr Sam Goi bought 500,000 shares in Super Coffeemix Manufacturing at 75 cents each on Aug 17.

But the swift rebound in the market on Monday also allowed some directors to make a pretty penny.

A director of a Cosco Corp subsidiary, Mr Lee Fook Choy, picked up 500,000 shares at a low of $3.882 on Aug 17 - after they slumped from the $5.65 record late last month. He then sold the shares on Tuesday at $4.60, making a tidy $360,000.

For companies which have a share buyback programme, the current market weakness presents good buying opportunities.

NRA Capital’s Mr Scully added that for firms with a performance share scheme, ‘companies may buy back the shares to allocate to employees later as part of their performance bonus scheme’.

Over the last few days, many companies have been in the market. StarHub bought nearly two million shares at prices ranging from $2.78 to $2.90 since last Friday.

Also since Aug 17, United Overseas Bank has bought back 2.1 million shares at prices as low as $18.80. These have risen as high as $21.50.
Source : Straits Times - 25 Aug 2007

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Union leaders upbeat about CPF changes

Union leaders upbeat about CPF changes
By Keith Lin
LABOUR chief Lim Swee Say said yesterday union leaders are ‘positive and upbeat’ about the Central Provident Fund (CPF) changes announced by Prime Minister Lee Hsien Loong during the National Day Rally.
They are receptive to the need for Singaporeans to work longer, understand the rationale behind delaying the CPF Minimum Sum draw-down age, and welcome the extra one percentage point interest to be given for the first $60,000 in their CPF accounts, he said.

However, their encouraging feedback comes with one caveat: that no effort be spared to ensure that companies rehire workers who have reached the retirement age of 62.

These sentiments were distilled from a dialogue on Thursday night as well as discussions with unionists in the past few days following PM Lee’s rally address on Sunday.

The dialogue was between 400 union leaders and a panel made up of Mr Lim, Manpower Minister Ng Eng Hen, Minister in the Prime Minister’s Office Lim Boon Heng, who oversees ageing issues, and Minister of State for Manpower Gan Kim Yong, who chairs a committee on the employment of older workers.

Mr Lim Swee Say told reporters after the dialogue that union leaders are convinced that Singaporeans now have to work longer.

‘It’s no longer a case of how many. Now, it becomes a lot more certain,’ he said.

Figures show that among those who have reached the retirement age of 62, one in two will live to at least 85.

So, Mr Lim said, it is important to help older workers work longer because ‘to spend at least 23 years in retirement is a long time’.

With people living longer, unionists now have two more tasks to shoulder, said Mr Lim. One is to help workers save more for their retirement needs and the other, to stretch their retirement savings.

Hence, union leaders welcome the additional one percentage point interest on the first $60,000 CPF savings.

Raising the CPF Minimum Sum draw-down age from the present 62 to 65 by 2018 also makes sense, said Mr Lim, as the move will further stretch members’ CPF savings for retirement.

He also felt that, as a labour movement, ‘it is more… practical and pragmatic’ to help workers work beyond 62 to 65 than worry about how to help them find jobs later.

During the dialogue, union leaders also expressed concern on issues like the compulsory annuities scheme for CPF members below age 50.

While not opposed to it, some wanted it to be a basic package that will not be costly to buy, Mr Lim said.

Others suggested dumping it and exploring other options, like extending the drawdown period of the CPF Minimum Sum from the current 20 years to 25 years.

Source : Straits Times - 25 Aug 2007

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400 openings at St Regis, but job fair draws 1,800

400 openings at St Regis, but job fair draws 1,800
By Lim Wei Chean
ABOUT 1,800 people queued up at the Arts House over the past two days, hoping to land a job at the new St Regis Hotel due to open at the year end.
It is the first international luxury hotel to open here after a seven-year hiatus. The last hotel to do so was The Fullerton in 2000.

St Regis’ job fair - for 400 vacancies - is unprecedented and caused a slight ripple across the hotel industry.

While most hoteliers told The Straits Times they thought the turnout was a ‘good one’, they were concerned about the situation ahead, given the tight service staff supply.

Mr Patrick Fiat, general manager with the Royal Plaza on Scotts, said: ‘This is just a taste of the bloodbath we can expect when the integrated resorts come up.’

He added that it was already tough to find service staff because Singaporeans see these jobs as low-paying and unglamorous.

St Regis general manager Yngvar Stray said he did not expect such a big response himself. His initial estimate was 1,000 applicants over two days.

St Regis denied any intention to poach staff from other hotels but said that in a free market, anyone would be free to apply.

Royal Plaza on Scotts’ Mr Fiat said: ‘What we need to do is really work hard on how to retain staff.’

Most hotels said they had programmes in place to keep staff loyal.

But there is no denying that the promise of better pay will attract people to move.

Meritus Mandarin general manager Raymond Ang said that since the hotel started paying out mid-year bonuses this year, 10 applicants have poured in for every position advertised.

He said: ‘In the current highly competitive and volatile hospitality industry, we can foresee heightened employee interest in our industry. Overwhelming response to recruitment exercises is to be expected.’
Source : Straits Times - 25 Aug 2007

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Revised housing grant to help 1,300 more families

Revised housing grant to help 1,300 more families
Enhanced HDB scheme ups value of grants, household income ceiling
By Jessica Cheam
WITH immediate effect, lower-income families who dream of getting their first Housing Board (HDB) flat will get extra financial help from the Government.
The value of these one-off grants, introduced in March last year, is increasing - and so is the number of eligible households.

The grant will be raised to a maximum of $30,000 from $20,000 now. The amount paid in individual cases depends on the family’s monthly income.

The monthly household income ceiling, which determines who qualifies for the grant, will also be lifted to $4,000 from $3,000.

Details of the enhanced Additional Central Provident Fund Housing Grant (AHG) scheme were unveiled by the HDB yesterday.

It said in a statement that since its launch, the scheme has helped 3,300 lower-income families to the tune of $40 million.

It expects the revised scheme to benefit 1,300 more families annually, with the total value of grants given estimated at $35 million.

This brings the total number of households which will benefit to 4,000 a year.

Mr Kenny Koh, a 26-year-old working in the IT industry who previously did not qualify, said that the increased grant was timely as property prices were soaring.

‘Any extra help counts for a lot at this time,’ he said.

Under the revised scheme, his family is now eligible for a $10,000 grant for their first HDB flat when, previously, they had no help.

The HDB’s latest move follows Prime Minister Lee Hsien Loong’s National Day Rally speech last Sunday, when he announced details of the bigger housing subsidy.

This is part of a slew of housing policy changes meant to tackle the country’s widening income gap and to help Singaporeans build their retirement nest-egg - both major themes in Mr Lee’s speech.

Currently, about 85 per cent of Singaporeans live in HDB flats.

The same conditions that accompanied the original scheme also apply to the revised one.

For instance, one of the flat buyers must have worked continuously for at least two years. And if the flat is sold, the grant will have to be repaid into the buyer’s CPF account, in compliance with CPF rules.

The revised AHG applies to both new and resale flat purchases.

The separate $30,000 CPF Housing Grant for first-time buyers - $40,000 if you live near your parents - applies only to resale flats, however.

Lower-income families can now get up to $70,000 in grants if they are eligible for all of the subsidies.

PropNex chief executive Mohamed Ismail said this amount was very substantial and would be a big relief for such families.

‘They should not be left out in owning this asset: a Singapore home. The grants give them easy entry into the property market,’ he said.

Flat-hunter Victorine Pang, a 25-year-old bank executive, welcomed the news.

‘This will help more Singaporeans get on the property ladder, and earlier,’ she said. But she added that it was also timely for the HDB to review the $8,000 income ceiling for the separate CPF housing grant. Middle-income earners like Ms Pang and her fiance, whose combined salaries are just over $8,000, are finding it increasingly hard to get on the property ladder without any form of subsidies.

PropNex’s Mr Mohamed said that the ceiling, which has been in place for ‘a very long time’, is due for a review.

‘With current private and HDB resale property prices, the financial burden for young couples buying their first home is definitely increasing,’ he said.

Source : Straits Times - 25 Aug 2007

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Late boomers set to swell retirees’ ranks in 10 years

Late boomers set to swell retirees’ ranks in 10 years
By Lydia Lim, Senior Political Correspondent
TRUCK driver Suya Raju turns 62 in 10 years’ time.
So will more than 60,000 other Singaporeans who make up the generation demographers call the ‘late baby boomers’.

Their entry into old age will cause the ranks of retirees to swell massively. They are also less likely than the current generation of elderly to have children to support them through old age.

This is because more of them have chosen to remain single or childless. Divorce rates have also gone up. More of their children may also have emigrated.

Sociologist Angelique Chan says these changes in family structure will reduce the number of caregivers available.

To help these Singaporeans - who are now in their 40s and 50s - save more for retirement, Prime Minister Lee Hsien Loong announced during his National Day Rally last Sunday a slew of changes to the Central Provident Fund (CPF), housing and labour policies.

Mr Suya had one of his wishes fulfilled - a higher interest rate on his CPF savings.

But Member of Parliament Ong Kian Min thinks the increase is still too low to ensure adequate retirement savings for the many CPF members with $45,000 or less in their accounts.

Like many of his peers, Mr Suya also hopes to work beyond the retirement age of 62.

Will he be able to, and under what conditions?

Insight looks at the planned policy changes in greater detail to see if they can help to forestall a looming retirement savings crunch.
Source : Straits Times - 25 Aug 2007

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Rehiring retirees - let’s get going, says labour chief

Rehiring retirees - let’s get going, says labour chief 
Employers’ group also keen to make it work and suggests using job performance and health as criteria
By Sue-Ann Chia 
THERE is an urgent need to prepare now for the new law to re-employ retirees, says labour chief Lim Swee Say.
He said yesterday that the next two years, especially, will be critical. That would be the time needed for Singapore to build up enough re-employment case studies for the Government to decide how best to craft the legislation, slated for 2012.

One guide for it is the Japanese model. However, Mr Lim said Singapore should not copy the model ‘wholesale’ as each country has different needs.

The Singapore National Employers Federation (SNEF), at a separate press conference, also gave its take on the law yesterday.

It is proposing that medical fitness and job performance of workers be among the criteria used for re-employment, said the federation’s president Stephen Lee.

In the event of disagreements, both Mr Lim and Mr Lee said that a dispute resolution mechanism should be introduced for workers to seek redress.

Both men were giving their respective group’s response to Prime Minister Lee Hsien Loong’s National Day rally address last Sunday.

PM Lee had outlined changes to help older folk work longer and save more for retirement.

Chief among the changes is the re-employment law which requires employers to offer workers a chance to work beyond the retirement age of 62 - first to 65 and later to 67.

The labour movement wants the law to be both pro-worker and pro-business.

‘Then, we will have a very good chance of making re-employment work,’ said Mr Lim, the secretary-general of the National Trades Union Congress (NTUC).

Getting companies and workers to embrace re-employment is a top priority of NTUC as it must succeed, he said.

‘If re-employment does not become widespread on the ground, then many of these issues relating to ageing of the population, ageing of the workforce will not go away.’

Hence, he said, ‘we are approaching the concept as a no-choice situation…to turn it into a competitive advantage for Singapore’.

Mr Lim urged older workers to stay healthy and to retrain to ensure they have the skills to stay employed for a longer period.

At the same time, he called on companies to put in place rehiring practices now, saying it would make for a smooth implementation when the law is introduced.

So far, 275 unionised firms have such practices, with 209 of them rehiring more than 3,000 workers.

SNEF surveys also showed that more companies are rehiring their retirees. In 2005, 46.6 per cent did so. Last year, the figure was 53.6 per cent.

These efforts, in part, helped to bump up the employment rate of residents aged 55 to 64 from 47 per cent in 2004 to 53.7 per cent last year. This means 40,000 more of them are working.

But the target rate for this group is 65 per cent.

To do so, Mr Lim said employers must redesign jobs to suit older workers and revamp salary structures to pay according to performance instead of seniority.

Workers also need to retrain their skills and stay healthy while more needs to be done to attract more women to return to the workforce.

Mr Alexander Melchers, vice-president of the Singapore-German Chamber of Industry and Commerce, said employers were worried about the new law.

‘There is anticipation and worry over how this will be done,’ he said.

‘If re-employment of older workers will make companies more competitive, they will welcome it.’ 
 

Source : Straits Times - 25 Aug 2007

Over 3,000 needy families benefit from HDB grant

Over 3,000 needy families benefit from HDB grant

By ARTHUR SIM
THE Housing and Development Board (HDB) said that 3,300 lower income families have received the Additional CPF Housing Grant (AHG) between the scheme’s start in March 2006 and last month. The total disbursed is $40 million.
The HDB said that with the income ceiling for AHG eligibility now increased from $3,000 to $4,000, it expects to reach an additional 1,300 households annually, costing the government an estimated additional $35 million annually.

A spokesman for the HDB added: ‘The actual amount to be spent under the revised AHG would depend on the number of applications received, the number who are eligible and the quantum of loan they get.’

The HDB announced the revised income ceiling for AHG yesterday.

It follows the announcement by Prime Minister Lee Hsien Loong during the National Day Rally that more steps would be taken to make it easier for lower income first-time buyers to own flats.

The maximum grant has also been increased, from $20,000 to $30,000. To receive the maximum grant, a household’s income needs to be $1,500 or less.

The AHG depends on household income; for instance, those earning between $3,501 and $4,000 may receive $5,000. The HDB said it now expects 4,000 households to benefit from AHG each year.
The HDB figures show that the quantum of grants is evenly spread among the different lower-income groups.

HDB said: ‘The distribution of AHG beneficiaries is fairly even across the previous four categories of $5,000, $10,000, $15,000 and $20,000.’

The board spokesman said: ‘The proportion of recipients buying new and resale flats with AHG was about equal. More than 80 per cent of the benefiting households purchased four-room or smaller flats.’

As with the existing AHG scheme, at least one of the flat buyers must have worked continuously for a minimum of two years when they apply to buy the flat.

When the scheme was launched in 2006, HDB estimated that 6,000 households, or roughly 40 per cent of first-time buyers, were expected to benefit from the grant annually.

Prices for resale flats have been increasing. For Q2 2007, HDB’s resale price index registered an increase of 3 per cent quarter-on-quarter.
Source : Business Times - 25 Aug 2007

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GuocoLand full-year profit up 81%

GuocoLand full-year profit up 81%
Revenue jumps 94% to $702.5m; Q4 earnings more than triple to $194.7m

By KALPANA RASHIWALA
QUEK Leng Chan’s Singapore-listed GuocoLand yesterday posted fourth-quarter net profit of $194.7 million, more than triple the $53.7 million in the same year-ago period, boosting full-year net earnings to $281.9 million, up 81 per cent from the preceding year.
Casa Rosita: By the year-end, GuocoLand is preparing to launch at least three projects, including a luxury condo on the site of Casa Rosita
GuocoLand attributed the improved bottom line for the year ended June 30, 2007 partly to higher profits recognised from residential development projects in Singapore and from the sale of residential apartments in West End Point in Beijing.

In addition, GuocoLand’s other income increased 33 per cent to $194.7 million; the figure includes revaluation gain of $116.5 million on investment properties in Singapore (mainly from Tung Centre) and a $19.3 million gain from the sale of the group’s long-term investment in BIL International Ltd.

Revenue for the fourth quarter ended June 30, 2007 jumped to $361 million from $59.6 million in the same year-ago period, while full-year revenue jumped 94 per cent to $702.5 million.

The full-year increase was due primarily to a nearly 90 per cent jump in revenue from property development to $652.8 million.

By end-December 2007, GuocoLand is preparing to launch at least three projects - a freehold luxury condo named Goodwood Residence on the Casa Rosita site in Bukit Timah, Phase 1 of the residential component of a Ho Chi Minh City p“roject, and the maiden phase of Ascot Park, a 1,112-unit condo in Nanjing.

The group’s China land bank currently stands at about two million square metres gross floor area, while its Singapore land bank is about 236,000 sq m saleable area.

Full-year earnings per share rose from 24.43 cents to 46.15 cents.

Net asset value per share stood at $2.30 as at June 30, 2007, up from $1.83 a year earlier. Ordinary shareholders will receive an 8-cent per share first and final dividend, just like in the preceding year.

Source : Business Times - 25 Aug 2007

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Furniture industry sitting pretty as demand booms

Furniture industry sitting pretty as demand booms
Value tops $1b last year as Singapore designers find niche abroad and growing demand at home
By OH BOON PING

(SINGAPORE) Quietly, but with much polish, Singapore’s furniture trade is bringing some serious money to the table.
Designed to sell: The region holds more than 10 furniture exhibitions a year, with the global exhibition market estimated at US$20b a year
Last year, the furniture sector here crossed the billion-dollar mark in value, as manufacturers, designers and traders made their presence felt on the world stage with higher exports to the crucial and high-spending markets of the United States, Europe and Japan.

At this year’s International Furniture Fair Singapore (IFFS), spot orders reached US$240 million, followed by US$2.1 billion in potential follow-on sales.

The sales figures were up from US$230 million in spot orders and US$2 billion in follow-on sales two years ago.

Industry players told BT that the booming property market, stronger brand positioning and expected spin-offs from the integrated resorts (IRs) had helped bring in the orders.

Joseph Goy, general manager of the Furniture Mall, said: ‘The wave of en-bloc sales has definitely generated spin-offs for the home furnishing business. This is especially so for the high-end items, where we are talking about $200,000 to $300,000 in furnishing costs per apartment.’

Executive chairman of Lorenzo International James Goh said that the supply of units in a location can increase by as much as five-fold with every en-bloc deal. ‘This will stimulate demand for home furnishing,’ he said.

To cash in on this opportunity, Lorenzo is launching a new bedroom and bed linen product series, which the company believes will be well received by its customers.

And it helps that the importance of brand-building and being associated with quality furniture with strong designs has already dawned on many Singapore furniture firms, said IFFS CEO Quek Chin Tuan.

‘In fact, buyers from Italy - known for their up-market taste - are increasingly looking to satisfy their demand by sourcing for furniture made in Asia,’ he said.

Besides Lorenzo, other local firms that have made it to the international stage include Koda Ltd and HTL International.

Koda’s strongholds are in Europe and North America, from which it drew 78.3 per cent of its sales in FY07.

‘We have been selling to the mid to upper-end customers in those markets as they are willing to pay a premium for good designs and reliable quality,’ said Koda managing director James Koh.

Sofa-maker HTL also has a presence in those markets. HTL was recognised by Forbes Asia as one of the Asia-Pacific’s ‘200 Best Under a Billion’ list of top small companies in 2005.

The increases in both the number of exhibitors and floor area at the trade show is testimony to the fact that the furniture industry in Singapore is booming.

IFFS said its show’s net exhibition space jumped 26 per cent this year to 39,300 sq m - from 31,168 sq m four years ago - while exhibitors numbered some 510 - a rise from 450 exhibitors in 2004.

Mr Quek said that more than 80 per cent of the 44,000 sq m space in next year’s fair has already been booked.

South-east Asia now holds more than 10 furniture exhibitions every year and IFFS estimates put the size of the global furniture exhibition market at about US$20 billion a year.

The furniture companies are also upbeat about the industry prospects in Singapore once the two Integrated Resorts open their doors in 2009.

‘The resorts house F&B, entertainment outlets and hotels all under one roof. So there will definitely be a high demand for different furniture and furnishing options of the highest quality,’ said Andrew Ng, president of the Singapore Furniture Industries Council (SFIC).

IFFS said that the visitors at its trade shows are usually from developed markets such as United States and Europe, and Singapore’s vibrant entertainment and nightlife scene is a big draw for them.

Others added that the supply of rooms at the new resorts will ease the shortage of hotel rooms here, and the IRs’ future expansion also spells new opportunities for the sector.

Still, companies foresee various challenges in growing their businesses.

These include the keen competition posed by low-cost manufacturers in China and the lack of intellectual property protection in many Asian countries.

Responding to these concerns, some firms have suggested generating a continuous flow of new designs with a shelf-life as short as six months, or ‘developing full series of wood-based furniture under the same theme’, said Mr Goh of Lorenzo. ‘This makes it more difficult for anyone to copy as it entails heavy investment like sophisticated and expensive machineries.’

The SFIC said that it hopes to raise awareness of intellectual property rights among local players while encouraging innovation and the creation of unique designs.

As for price competition, Mr Quek said firms can relocate production to other low-cost centres such as Vietnam and Indonesia where there is a ready supply of raw materials and cheap labour.

He said: ‘This gives them an advantage over their Chinese counterparts since raw materials still have to be imported in China.’

Source : Business Times - 25 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
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