Singapore enjoys steady flow of billion-dollar investments

Singapore enjoys steady flow of billion-dollar investments

Global big names ranging from drugmaker Novartis to oil giant ExxonMobil put down huge sums on big investments in Singapore, including bricks-and-mortar assets as well as research and development activity. GABRIEL CHEN assesses some of these mega deals

THE stream of huge deals flowing into Singapore this year is striking proof that investors still have plenty of confidence in the country.
Commitments were made in bricks-and-mortar fixed assets as well as research and development, with some global giants - such as pharmaceutical company Novartis, chipmaker Qimonda, Neste Oil and Renewable Energy Corp - ready to spend at least $1 billion each.

These mega deals will also create jobs and boost the Republic’s reputation as a hub for petrochemicals, pharmaceuticals and renewable energy.

Such huge investments are typically based on long-term considerations and are unlikely to be affected by cyclical events, although economists say a severe global recession could still delay some of them.

Standard Chartered Bank economist Alvin Liew believes that as long as Singapore’s fundamentals remain sound and long-term growth projections remain buoyant, ‘investment commitments will be there and not fall off the cliff’.

ExxonMobil’s Jurong Island petrochemical plant

EXXONMOBIL announced in September that it would go ahead with its second multibillion-dollar petrochemical complex on Jurong Island.

The new Singapore Parallel Train complex is estimated to cost US$4 billion (S$5.8 billion) - almost double the cost of ExxonMobil’s first complex, which is also on Jurong Island.

The Train, which will be up and running by early 2011, will be equipped to turn crude oil components into petrochemical products that are new to consumers in booming Asia, said the oil giant.

For example, it will be the first location in the world where ExxonMobil will produce large-scale commercial quantities of a new-age material called Vistamaxx. This is a kind of speciality elastomer or rubber said to have unprecedented elasticity, softness and strength, with uses ranging from medical equipment to space-age fabrics.

ExxonMobil said 400 business and plant jobs will be created when the second complex is up and running.

Its total investment in Singapore now comes to around US$11 billion.

Novartis’ cutting-edge drug facility in Tuas

SWISS drug giant Novartis announced its biggest-ever manufacturing investment - a US$700 million (S$1.01 billion) plant to produce protein-based drugs, known also as biopharmaceuticals.

The facility will be sited in Tuas, next to its US$180 million tablet-making plant, Novartis announced in October. Construction of the plant will begin next year and will create more than 300 jobs when it is completed in 2012.

The plant will carry out clinical and commercial manufacturing of products that can be used to treat such afflictions as cancer, asthma, arthritis and spinal cord injury.

The development is especially significant as the drugs the plant will produce - known as biologics - are at the forefront of the global pharmaceutical industry.

Industry watchers say biologics are set to be the pharmaceutical sector’s main growth driver in the next three years.

World’s largest biodiesel complex by Neste Oil

FINLAND’S Neste Oil is investing 550 million euros (S$1.15 billion) to build a biodiesel plant in Tuas, which will be the world’s largest.

Construction will start next year and the plant will be completed in 2010, said the Helsinki-listed company in November.

The plant, which will convert palm oil into car fuel, will be able to produce 800,000 tonnes of biodiesel annually.

Biodiesels are a renewable energy source as they are derived from crops that can be repeatedly grown and harvested.

Also, Neste says greenhouse gas emissions from its fuel are 40 to 60 per cent less than those from conventional diesel.

It will most likely use locally produced palm oil for the plant, which will eventually employ 100 people.

Shell Eastern’s petrochemical plant

SHELL Eastern Petroleum announced in April it will build a butadiene extraction unit to complement the US$3 billion (S$4.4 billion) petrochemicals complex that will be completed in 2009.

Though it did not reveal the cost of the unit, industry watchers say it could run into ’several tens of millions of dollars’.

Butadiene is used to produce polymers and chemical intermediates for making end-products such as synthetic rubber.

Shell’s wholly-owned complex will span Pulau Bukom and Jurong Island.

When completed, the complex will employ about 200 engineers, skilled workers and semi-skilled labour.

Singapore-led group’s Jurong petrochem facility

A CONSORTIUM led by Singapore’s Jurong Aromatics Corp (JAC) will build a US$2 billion (S$2.9 billion) petrochemical plant on Jurong Island, JAC announced in October. Its partners include Swiss- based oil and commodity trading house Glencore and South Korean refiner SK Energy.

The facility will produce petrochemicals such as benzene and xylene, which are used in end-products like detergents.

Construction will begin next year and is expected to be completed by 2011.

Renewable Energy Corp’s solar plant in Tuas

NORWEGIAN firm Renewable Energy Corp is building a $6.3 billion plant for making solar energy products.

The plant will have the capacity to make solar modules with annual output of 1.5 gigawatts - enough to power several million households, the firm announced in October. The plant, to be built in Tuas View, is expected to start output in 2010 and create 3,000 jobs.

Qimonda’s wafer fab in Tampines

GERMAN chipmaker Qimonda will build an estimated $4 billion wafer fabrication plant in Tampines.

The plant, announced in April, will make Dram chips that usually go into personal computers. Production is expected to start in 2009 with 1,500 jobs created.

Source : Straits Times - 27 Dec 2007

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Merrill has strong growth potential, says Singapore Temasek

Merrill has strong growth potential, says Singapore Temasek

Win-win deal as firm recoups and Temasek gains toehold in US franchise: Analysts

By Gabriel Chen

TEMASEK Holdings says its newly unveiled US$4.4 billion (S$6.4 billion) investment in United States financial giant Merrill Lynch reflects its belief in the ’strong growth potential’ of the troubled firm.
Temasek’s senior managing director of investments for India and Russia, Mr Manish Kejriwal, said in a statement that Merrill is a leading global financial institution with strong franchises in wealth management, global markets and investment banking.

‘We believe it has an excellent platform with strong growth potential under John’s leadership,’ Mr Kejriwal said. In the wake of billions of dollars in US sub-prime mortgage crisis-related losses, Merrill has appointed Mr John Thain as its chief executive.

Merrill will sell US$5 billion of new stock to the Singapore investment company and US money manager Davis Selected Advisors at US$48 a share - a 13.6 per cent discount to its trading price last Friday.

Temasek has an option to buy another US$600 million worth of shares by March 28 next year, as long as its ownership does not exceed 10 per cent of Merrill’s total outstanding common shares.

Analysts see Temasek’s investment as a win-win - allowing Merrill, long known for its ‘thundering herd’ of stockbrokers, to recapitalise while giving Temasek a toehold in a famous franchise hit by sub-prime-related losses.

PASSIVE INVESTORS
Merrill has described Temasek and Davis as passive investors, with neither entity having any rights of control in the firm.

‘Merrill shares have come down about 25 per cent to 30 per cent from their peak, so it’s actually an opportune action on Temasek’s part,’ Kim Eng analyst Pauline Lee said.

Merrill gave a discount partly in exchange for a lock-up agreement that keeps Temasek from selling the shares for a year.

Merrill, which is expected by analysts to announce further mortgage write-downs of US$8 billion or more, has described Temasek and Davis as passive investors, with neither entity having any rights of control in the loss- making brokerage.

‘Timing-wise, it’s perfect. I don’t think Temasek would have got any lower price than they what they are getting,’ said Credit Suisse chief economist and strategist for Asia-Pacific Arjuna Mahendran, who believes ‘asset infusion’ by sovereign wealth funds will save the US banking industry from worse results.

Sovereign wealth funds such as the Government of Singapore Investment Corp (GIC), Abu Dhabi Investment Authority and China Investment Corp have swooped to grab stakes in UBS, Citigroup and Morgan Stanley respectively.

The funds are helping to shore up the balance sheets of banks bleeding from sub-prime losses, but they have also come under scrutiny from opponents of the rush of foreign investment into Wall Street’s biggest names.

‘Americans’ perception of Singapore will be heightened,’ said DMG & Partners Securities senior dealing director Gabriel Yap. ‘It could be quite startling, especially for those who don’t know how rich Singapore is, particularly Americans living in the inner areas like Kansas or Louisiana.’

For now, the US is not opposed to cash-rich sovereign wealth funds taking stakes in its banks. ‘I’m fine with capital coming in from overseas to help bolster financial institutions,’ US President George W. Bush told a press conference last week.

With GIC and Temasek’s recent purchases into UBS and Merrill, industry watchers feel that it is Singapore that will benefit in the long run, as it aims to be the region’s wealth management hub, ahead of rival Hong Kong.

‘As in the case of UBS, Merrill would certainly think in favour of Singapore should it ever have to decide where to locate a business - be it private banking or investment banking,’ said senior banker Rolf Gerber.
Source : Straits Times - 27 Dec 2007

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More Singapore drivers making the switch to GAS

More Singapore drivers making the switch to GAS

High petrol prices, green rebate help steer over 400 to compressed natural gas-powered vehicles

By Christopher Tan, Senior Correspondent
SMALL CHANGE? NOT REALLY: Mr W.K. Chin opted to convert his Porsche Cayman (above) to run on both compressed natural gas and petrol out of curiosity, but he could also save around $30,000 with the green tax break. — ST PHOTO: CHRISTOPHER TAN

STEP on the gas. More motorists are choosing to do exactly that these days.
More than 220 have had their cars converted to run on both compressed natural gas (CNG) and petrol.

About 200 more have bought manufacturer-assembled petrol-CNG passenger cars, also called ‘bi-fuel’ cars.

Out to save the earth and save some money too, they say high petrol prices plus a generous green tax rebate helped them make the switch.

The trend started late last year, when passenger cars were allowed to be fitted to run on CNG as well as petrol.

Most conversions were done initially by German company
C Melchers GmBH and local firm Scantruck Engineering, both of which started conversions in earnest late last year at their respective workshops in Sungei Kadut and Tuas.

Two other firms have started offering the service - parallel importer Mova Automotive and Thai company SO NGV.

Most of the directly imported bi-fuel cars are Mercedes-Benzes.

Converting a car costs from around $3,000 and involves installing a gas tank, pipings to the engine, and a refuelling intake.

But customers usually recoup their outlay within two years as CNG retails at around 78 cents an equivalent litre. Petrol goes for about $1.90 a litre.

Product manager Lim Sim Leng, 45, owner of a converted Mercedes-Benz Vito van, readily attests to this.

‘A tank of CNG costs me $11, and will give me 190 to 200km. Using petrol for the same distance, I would have to spend at least double that,’ he said.

A petrol-electric hybrid car like the Toyota Prius would chalk up about 8.4 cents per km, compared with 7 cents for a car running on CNG and 18 cents for a conventional petrol car.

Information technology manager Adrian Koh, 34, noticed a slight power loss in his Chevrolet Optra after it was converted. ‘But I don’t mind since I don’t drive like a race car driver,’ he said.

Project manager Ang Kwang Wee, 46, was impressed by his savings. ‘I never knew the mileage was so good. I travelled 2,350km last month and my total fuel spending was $227.

‘If I had used only petrol, I would have spent over $440.’

He is happy his Toyota Picnic is able to accommodate the gas tank beneath the floor of the boot - which means the car still has decent boot space left.

A big incentive for conversion is the green tax break. New cars which can run on CNG are accorded a rebate equivalent to 40 percentage points of their additional registration fee.

In the case of a car like the Porsche Cayman - which businessman W.K. Chin, 38, is converting - it could work out to a saving of around $30,000 on the purchase price.

It was curiosity which led him to choose gas. ‘I wanted to try something new,’ he said. He found out about CNG conversions just as he was about to buy his Porsche.

This particular conversion - undertaken by Scantruck - is taking a little longer than usual because the authorities wanted to make sure the gas tank had a capacity of at least 50 litres - to ensure that owners are serious about their ‘green’ intentions.

To comply, Mr Chin’s Porsche had to be installed with two carbon-fibre gas tanks, as a single large steel tank cannot be fitted without a huge weight penalty.

Mr Gilbert von der Aue, sales manager at Melchers, said he expects demand for conversion to go up when gas-refuelling facilities at Singapore Petroleum Company’s Jalan Buroh station opens in the new year and Smart Energy’s station in Mandai opens in February.

Currently, there is only one CNG kiosk: on Jurong Island.

‘With current petrol prices, we expect demand for conversion to be high,’ he said.
All you need to know about CNG

What is CNG?
CNG is compressed natural gas, a fossil fuel that is more abundant than oil. It is cheaper than petrol (about 80 cents an equivalent litre, versus $1.90 for petrol); and is considered to be cleaner than diesel.
What does converting your car to run on CNG entail?
A CNG conversion kit is fitted, with prices starting from around $3,000. The kit consists of one or more gas cylinders (usually placed in the boot), pipings leading from the cylinder to the engine, valves and regulators, and a refuelling intake.
Where do CNG cars refuel?
On Jurong Island or in Johor Baru. But a new pump in Singapore Petroleum Company’s Jalan Buroh station will open next month, and another belonging to Smart Energy in Mandai Link will open in February. One other station in Serangoon North will follow within nine months or so.
What if the car runs out of CNG before you find a station?
The car will still be able to run on petrol. It will stall only if it is completely empty of both fuels.
Is there any downside to switching to CNG?
Conversion may void the car’s warranty, and could result in a slight drop in power. More expensive conversion kits can address the latter.
Is it safe?
CNG is less flammable than petrol. Cylinders have release valves in case pressure builds up; and gas is lighter than air and will dissipate fairly quickly.
Source : Straits Times - 27 Dec 2007

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Singapore Fuel prices drive up electricity tariffs

Singapore Fuel prices drive up electricity tariffs

By Judith Tan & Lim Wei Chean

FROM next month, electricity tariffs will go up nearly 6 per cent, to 22.62 cents per kilowatt-hour (kwh).
This is the highest price hike since 2001. The revision is the result of soaring fuel prices, said Singapore Power which released the January to March tariff yesterday.

The 1.24 cents per kwh increase works out to between $1.30 and $5.50 a month for one- to five-room HDB flats.

Between Jan 1 and March 31 next year, Singapore Power expects fuel prices to go up by some 10.5 per cent, from $87.46 per barrel to $96.64 (US$66.28) a barrel.

Electricity prices are adjusted every three months. The last increase was made for the October-to-December quarter when electricity costs went up between $1 and $4.20 a month for one- to five-room HDB flats.

Members of Parliament The Straits Times spoke to agreed that with the rising fuel oil prices, the electricity tariff hike is inevitable.
Dr Lily Neo, an MP for Jalan Besar GRC, said lower-income families and the elderly ‘will definitely feel the pinch’.

She noted: ‘Already, many don’t switch on the lights at night to save the extra few cents. What we can do is offer financial help such as NTUC vouchers and food and grocery vouchers to tide them over.’

Dr Neo’s ward is home to some of Singapore’s poorest citizens. Half of the 32,886 residents live in 22 blocks of one- or two-room rental flats.

Dr Amy Khor, mayor of South West District, and Dr Teo Ho Pin, mayor of North West District, said vouchers are available for needy residents coping with existing utility arrears.

Dr Teo added: ‘These needy are also encouraged to be on Pay-As-You-Use (PAYU) scheme.’ This allows poor families to pay for electricity as they use it rather than face a supply cut-off when they cannot pay their bills.

Dr Khor said vouchers given out could then be used to top up PAYU utilities accounts, the bulk of which would be electricity bills. As of Dec 1, there were 13,470 households on PAYU.

Low-income earners were worried that the increased tariff would be an added burden.

Driver Mohammad Zul, 36, with a family of four living in a five-room flat, said: ‘Every month, the moment I get my pay, I pay my bills.’

He earns $1,500 a month. His family’s utility bill is about $200 a month. It used to be $150 less than half a year ago.

The electricity tariff hike will also affect public facilities like parks and carparks. Both districts already have ongoing programmes where energy efficient light bulbs and other appliances are used.

Dr Teo said he is looking at solar energy to run the lights in the parks and landscaped areas within his district. ‘We have called for tenders and are looking at awarding them sometime soon,’ he said.

Since January 2005, electricity tariff rates have been increasing almost every quarter, as fuel prices rise.

The latest rate of 22.62 cents per kwh is some 35 per cent more than January 2005’s rate of 16.06 cents per kwh.

But when fuel prices go down, tariffs are also lowered. Last January, when fuel prices went down to $75.73 per barrel from a high of $88.52, tariffs also went from 21.64 cents per kwh to 20.02 cents per kwh.
Source : Straits Times - 27 Dec 2007

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More Singapore HDB condo-like flats coming up

More Singapore HDB condo-like flats coming up

Bishan to get about 460 flats built by private developers; blocks may be as high as 50 storeys

By Tan Hui Yee, Housing Correspondent
BISHAN, one of the hottest young estates in the 1990s, is poised for a new infusion of public housing built by the private sector.
A 1.5 ha plot in Bishan Street 24, suitable for about 460 flats, was put up for tender yesterday by the Housing Board.

The developer who bags the site will able to design, build and sell flats there with consultants estimating that four-room flats could sell for $450,000 to $490,000.

Blocks can go up to about 50 storeys high so any development will tower over the rest of Bishan’s public housing.

ERA Singapore assistant vice-president Eugene Lim said the land release will trigger new interest in the town.

‘It will probably bring demand back to Bishan… This 50-storey project will be a landmark,’ he said.

‘It will probably bring demand back to Bishan…This 50-storey project will be a landmark.’
Experts expect the site - the tender closes on Feb 19 - to fetch between $103 million and $143 million, based on a price per sq ft per plot ratio of $180 to $250.

The site is the fourth to be released under a programme that gives private developers free rein over the project as long as they meet the general rules of public housing.

These include selling flats only to families earning no more than $8,000 a month and ensuring that a project’s common areas are easy to maintain. Such flats cater to buyers earning closer to the $8,000 cap and play a bridging role between generic HDB flats and private housing.

The first such project - the Premiere@Tampines developed by Sim Lian Land - drew almost 6,000 applicants for its 616 flats. Its units come with condo trappings like air-conditioning, built-in wardrobes and bay windows.

The Sim Lian sale was held one year ago but HDB prices have shot up by more than 11 per cent since then, so the rush for the Bishan development is expected to be just as robust.

IT sales manager Andy Tan, 32, who is considering a unit there, said: ‘The demand could be overwhelming. Hopefully, I am wrong.’

The second batch of 714 such flats in Boon Keng Road, developed by a group led by Hoi Hup Realty, is expected to be launched next month.

A third site in Ang Mo Kio was just sold to Greatearth Development, while three sites - in Toa Payoh, Simei and Bedok - will be released in the coming months. They could hold a total of 1,500 units.

The HDB has offered about 4,800 build-to-order flats and more than 4,000 units from its surplus stock this year.

Young couples have been grappling with surging prices in the resale market and a tight supply of heavily subsidised HDB flats.

A booming market has seen some sellers demand as much as $100,000 in cash over the valuation (COV) of a flat. As this sum cannot be paid with a home loan, and most HDB flat-buyers rely heavily on loans for financing, this high COV puts many people out of the running.

In response, the Government last month committed to offering for sale more than 7,000 new HDB flats over a period of seven months, as well as seven plots of land that could house another 3,000 higher-end homes.

But those in urgent need of new homes may find it tough going as they will take at least two to three years to build.

The HDB’s stock of surplus flats has been whittled down from about 10,000 three years ago to less than a third of that.

Buyers have scrambled for such units. Earlier this month, 316 surplus flats in the outlying towns of Hougang, Sengkang and Punggol attracted a staggering 5,147 applications.
Source : Straits Times - 27 Dec 2007

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Tourist arrivals Singapore , hotel rates at record highs in Singapore

Tourist arrivals Singapore , hotel rates at record highs in Singapore
‘In November 2007, Singapore welcomed 837,000 visitors… this sets a new record for the month of November,’ the Tourism Board said. — PHOTO: ST

SINGAPORE - SINGAPORE received a record number of visitors last month and hotel rates were also at fresh highs, the tourism authorities said on Wednesday.
The Singapore Tourism Board said 837,000 visitors arrived in November, the largest number ever for that month.

Average room rates for hotels also set a new milestone of $226 a night, the highest ever in any month and up almost 30 per cent over last year, the board said.

The Republic’s hotels earned record room revenues of $175.4 million, an increase of almost 24 per cent from last year, it said.

Visitor arrivals were 4.6 per cent higher than a year earlier, fuelled by strong arrivals from China, India and Australia, the board said.

‘In November 2007, Singapore welcomed 837,000 visitors… this sets a new record for the month of November,’ it said.

Singapore also hosted the annual Association of Southeast Asian Nations (Asean) summit and its related regional meetings which likely boosted November’s figures, as official delegations occupied several city hotels.

Lacking natural attractions, Singapore has embarked on a major campaign to spruce up its tourist appeal.

It has plans for new attractions including two casino resorts, expected to open by 2010, and is trying to become an arts and entertainment centre. It is to host its first Formula One Grand Prix late next year. — AFP
Source : Straits Times - 27 Dec 2007

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Singapore Big plans afoot for Marina Bay

Singapore Big plans afoot for Marina Bay

Event organisers and developers of Marina Bay have visions for the area as a huge public area, starting with the New Year’s Eve celebrations, reports CLARISSA TAN

IT’S not called the Bay of Celebration for nothing. Come New Year’s Eve, more than 150,000 people will converge on Marina Bay, and especially on the Esplanade. They will watch as the waterfront, already bathed in lights and the glow of thousands of floating spheres, is greeted with a burst of fireworks and music at the stroke of midnight.

Up in the air: Fireworks lit up the sky last year (above), and at the stroke of midnight on January 1 the new year will be greeted with a burst of fireworks and music; the Singapore Flyer (next) will provide a comprehensive view of the city and beyond
The spheres, all 5,000 of them, carry the wishes of people across Singapore. Members of the public have penned their hopes and visions on the white balls, which have been progressively deployed on the waters since mid-December.

One of the biggest hopes, of course, lies with the event organisers and developers of Marina Bay, who have visions for the area as a huge public area.

‘It is our hope that Marina Bay will be the ‘Bay of Celebration’ with a series of nationwide activities and celebrations,’ said Fun Siew Leng, director of urban planning and design at the Urban Redevelopment Authority.

‘It is fitting that Singapore’s New Year’s Eve tradition is held at Marina Bay, as the area reflects our ties with tradition and our wishes for the future.’

She said the URA works in ‘close collaboration with the stakeholders’ of Marina Bay at such public festivities, which includes the National Day Parade in August. The URA has worked with the Esplanade arts centre on the New Year countdowns since 2005, she said.

Marina Bay is set to be the heart of Singapore’s new downtown. Over the next few years, the area, already home to the central business district and many museums and civic buildings, will see the completion of another massive financial centre, several luxury residential towers, and an integrated resort that will house hotels and a casino.

The developers appear keen to promote Marina Bay not only as a centre of finance and high living, but also as a fun space for everyone.

The area will be fitted out with parks and waterfront walkways for the use of pedestrians, joggers and the general public.

Events such as the Countdown also aim to involve various community groups such as Youth Challenge, the Singapore Indian Development Association and Yayasan Mendaki.

Aspirations

‘When people from all walks of life come together to wish not only for themselves, but also collectively as a community, the occasion becomes a celebration of the aspirations of our people,’ said the Esplanade’s chief executive officer, Benson Puah.

Perhaps the most ambitious project concerns the waters of Marina Bay. Already, the Singapore River and Kallang Basin are the playgrounds of dragon boat rowers and wakeboarders, but greater plans are afoot.

The four water bodies of Greater Marina Bay - the Singapore River, the Kallang River, Marina Channel and Marina Bay - will provide an enlarged platform for national and international events, said Ms Fun.

‘Our vision is to make the Greater Marina Bay the premier waterfront lifestyle destination for residents and visitors,’ she said.

For instance, Marina Bay will be the venue for international high-speed sports events, with a 2.5 km power-sporting circuit for races.

At the Kallang Basin, a 35-hectare zone of water will be dedicated to canoeing and dragon boat races. Another five hectares at the Kallang River will be for other activities like wakeboarding.

Marina Channel will have a one-kilometre race course for rowing competitions, while the Singapore River will feature activities that showcase its history and heritage.

A waterfront loop of nearly 12 km is being built around Marina Bay, Marina Channel and the Kallang Basin, said Ms Fun.

The URA worked closely with the boards of Public Utilities, National Parks and Tourism, as well as with the Sports Council and the Singapore Land Authority to draw up this ‘water-activities master plan’, she added.

If skidding on the water is not your kind of thing, then you can survey the scene more serenely from the air.

The Singapore Flyer, the world’s largest observation wheel, will be opened in March, but already corporate groups are snapping up tickets for the inaugural ‘flights’ in mid-February, said a spokesperson for sales and marketing agent Adval. ‘We have set aside 20 per cent capacity to cater to walk-ins when the Flyer opens to the public on March 1, so as not to disappoint our visitors who turn up hoping to get up,’ she said.

Flying high

The Flyer will give a 360 degree view of the bay and the city skyline, as its capsules rotate up to 165 metres in the air. ‘No other location in Singapore will be able to provide such a comprehensive view of the island-city and beyond, to the surrounding isles of Malaysia and Indonesia,’ said the spokesperson.

The Flyer is being marketed with some rather savvy ideas. The giant wheel provides a ‘unique moving venue in the sky’ for people to host birthdays, company functions and even weddings.

Betrothed couples can buy a ‘Solemnisation Package’, reserving a floral-decorated capsule for two rotations (one hour) as they make their vows in front of up to 26 guests.

As for Feb 14, around 60 couples have already booked the Valentine’s Day Package.

The Flyer is close to the starting and finishing points of Singapore’s first Formula One Grand Prix, which will take place at night and on the streets of Marina Bay, in September 2008.

With all this going on, it would be hard indeed to ignore Marina Bay. The hope is to catapult Singapore to the big league where public events and celebrations are concerned.

Speaking of the countdown, URA’s Ms Fun said: ‘It is our wish to see it grow into an annual iconic event, placing Singapore alongside London, New York, Tokyo and all major cities, as the world bids farewell to one year and embraces the next.’

It remains to be seen whether the Marina Bay festivities will one day be mentioned in the same breath as that in New York’s Times Square.

Until then, it wouldn’t hurt to write your wishes on a ball and throw it on the sparkling river.

Source : Business Times - 27 Dec 2007

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S’pore Inflation a big issue to tackle next year

S’pore Inflation a big issue to tackle next year
SINGAPOREANS are by now accustomed to reports of rising prices, but that does little to change the fact that inflation is increasingly becoming one of the key issues the country has to tackle in the new year.
Christmas Eve brought more news on the inflation front, with consumer prices rising at their fastest pace in 25 years in November due to higher food and transport costs. Last month’s consumer price index (CPI) surged 4.2 per cent compared with a year ago. It was also 0.6 of a percentage point higher than the 3.6 per cent recorded in October, which was itself a 16-year high. The November figure came in higher than market estimates, with analysts in a Bloomberg poll forecasting a median rise of 3.8 per cent for the CPI.

November’s inflation figure has confirmed that October’s CPI was not just a one-off spike. Economists are now bracing themselves for even steeper increases in the CPI, and the 5 per cent mark is seen as within touching distance. The latest CPI figure has added more urgency to the need for government action to stem price pressures. The government has sketched out how it is likely to tackle rising prices. At the recent People’s Action Party (PAP) annual convention, Prime Minister Lee Hsien Loong said that the government is unlikely to impose controls on food or utility prices in response to rising inflation, but will continue to use other ways to help Singaporeans cope with the cost of living.
It is now widely expected that the Monetary Authority of Singapore (MAS) will let the Singapore dollar strengthen further, and a stronger local currency can help counter costlier imports. In terms of fiscal policies, the government has announced that it would hold back some projects, to help cool the building sector. But the consensus is growing that the government needs to go beyond monetary and fiscal measures. A number of suggestions have already been put forward.

One proposal is for the government to restore some of the CPF employer contribution cuts as a way to cool labour demand, which in turn will moderate growth and demand, and help ease inflationary pressures. Another is to more closely target the offsets for the two percentage point increase in the Goods and Services Tax. This is because when the 2 per cent GST hike was pushed through, the government had not reckoned on food and energy prices shooting up the way they have done.

Other suggestions include more utility bill rebates and lower conservancy charges for the lower-income families to offset higher food costs.

Hopefully, as many views as possible will be heard and debated. Cost pressures look set to become a key theme in policy making in the coming few months, and could well define next year’s Budget too.
Source : Business Times - 27 Dec 2007

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Mindy Yong

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Dearer electricity next year on higher oil prices in Singapore

Dearer electricity next year on higher oil prices in Singapore

ELECTRICITY will cost more from next year, no thanks to high oil prices.
SP Services, part of the Singapore Power group, said yesterday that tariffs will be going up from the first quarter.

For the period January 1 to March 31, electricity tariffs will increase by an average 5.94 per cent or 1.24 cents per kWh.

The rise is ‘due to the higher cost of electricity arising from higher fuel oil prices’, SP Services said.

According to data provided by SP Services in its statement, the new rates will be the highest since April 2001 for households and small businesses.

SP Services said that the rates are reviewed and adjusted according to fluctuating electricity costs every quarter.

The latest revisions have been approved by industry regulator Energy Market Authority.
Source : Business Times - 27 Dec 2007

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Mindy Yong

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mindy@mindyyong.com

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Nov visitors up 4.6% to record in Singapore

Nov visitors up 4.6% to record in Singapore

By NISHA RAMCHANDANI

SINGAPORE welcomed 837,000 visitors in November, which was a 4.6 per cent year-on-year growth and a record for the month, according to data released by the Singapore Tourism Board (STB) yesterday.

Bumper month: Arrivals from India increased 22.4% last month from a year earlier, while arrivals from Australia, Vietnam and China grew 21.4%, 19% and 17.5% respectively.
Figures show Indonesia, China, India, Australia, and Malaysia were the top five visitor-generating markets last month. Collectively, they accounted for 50 per cent of total visitor arrivals.

Among the top 15 markets, arrivals from India, Vietnam, China and Australia registered the highest growth, STB said.

Arrivals from India increased 22.4 per cent from a year earlier, while arrivals from Australia, Vietnam and China grew 21.4 per cent, 19 per cent and 17.5 per cent respectively. The peak year-end travel period, school holidays and airfare and travel promotions underpinned the growth.
Gazetted hotel room revenue was estimated at $175.4 million last month, 23.8 per cent higher than in November 2006. The average room rate (ARR) rose to $226 - a record for ARR in any given month. The figure was 29.8 per cent higher than ARR for November last year. But the average occupancy rate dipped to 88 per cent, a 4.2 percentage point decline from November 2006.

Source : Business Times - 27 Dec 2007

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

http://www.hotvictory.com