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6 percentage point reduction in Singapore CPF housing withdrawal limit from Jan 1
By Satish Cheney,
SINGAPORE : The CPF housing withdrawal limit for buying houses will be reduced by six percentage points from 1 Jan 2008.
It will be cut to 120% of the valuation limit, down from 126%.
The CPF housing withdrawal limit is being reduced to ensure that Singaporeans have enough savings when they retire and also for health care.
It was introduced in 2002 - at 150% of the valuation limit.
Analysts said the reduction is unlikely to have much impact for buyers and sellers.
“While it does result in lesser CPF to be used for buy housing, the impact on the market is not significant. But it does make people a little bit more careful when it comes to calculations over the long term,” said Eugene Lim, Assistant VP, ERA Realty Network.
“The impact on the mid-tier and high-end market is likely to be very limited because home buyers in this segment rely very little on CPF financing,” said Nicholas Mak, Director of Consultancy and Research, Knight Frank.
According to analysts, it’s hard to predict if prices will rise or fall. But one thing they agree on is that the six percent reduction in the CPF housing withdrawal limit will not have an impact on prices.
Industry watchers remain confident that the market will continue to be healthy, although they expect the figures from the final quarter of 2007 to be slightly lower.
About 70 private developments are expected to be launched in the first quarter of 2008.
“I expect the market to continue to remain healthy although the rate of growth in price appreciation and rental appreciation would probably be a bit more tapered, a bit more moderated compared to what we’ve seen one year ago,” said Mak.
However, the US sub-prime issue and the possibility of a recession in the US market are likely triggers for a slowdown in the housing sector here.
But many in the industry remain confident. - CNA /ls
Source : Channel NewsAsia - 01 Jan 2008
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Singapore New industrial sites offered in first half of 2008
Land release to keep up supply, ease pressure on business costs
By Tan Hui Yee
ONE new industrial site - in Woodlands - will be put up for tender early this year, while three in north and central Singapore will be open for applications.
The land release, announced by the Ministry of Trade and Industry yesterday, is designed to keep up the supply of land and take some of the pressure off business costs.
All four plots listed yesterday come with 60-year leases.
A 1.68ha plot in Woodlands Industrial Park is on the confirmed list and will be put up for tender in May.
Another three - a 1.14ha site in Ubi Avenue 4, a 0.54ha site in Kallang Pudding Road and a 0.8ha plot in Serangoon North Avenue 4 - will go on the reserve list in the first half of the year. These will be put up for sale only if a potential buyer commits to bidding a minimum price acceptable to the Government.
Apart from these plots, there are four others - in Yishun Avenue 6, Toh Tuck Avenue and Ubi Avenue 4 - already available for developers to bid on.
Property consultants said the latest list was a good mix of locations to meet demand for industrial space, but some pointed out that the amount of land had shrunk from previous programmes.
In the first half of last year, the Government put out a total of two sites on the confirmed list. This meant the sites were put up for tender at specific dates. It also offered another two sites under the same conditions in the second half.
The head of Knight Frank’s research and consultancy, Mr Nicholas Mak, said the Government is probably toning down as there is enough potential supply out there.
Mr Donald Han, the managing director of Cushman & Wakefield, expects demand to come from two areas: companies that have been forced out of their office premises on the fringes of the Central Business District because of rising rents; and firms bearing the brunt of rising rents within existing high-end industrial parks.
The latter, he said, would be looking to buy their own premises to lock in property costs.
Rents in districts like Alexandra Technopark have risen from about $3 per sq ft (psf) to more than $4 psf now and may continue heading northwards this year, Mr Han said.
‘We will see spillover demand coming out of high-tech parks and going into industrial space,’ he said.
He predicted that the new sites in well-located areas like Kallang Pudding and Toh Tuck would see the most action, especially from developers wanting to build multi-user facilities and sell them on a strata-title basis.
But he has also urged the Government to put out more sites around more centrally-located areas like Paya Lebar, Kallang and the Lower Delta area, which are popular for their accessibility.
‘The sooner we get this out, the sooner supply will meet demand,’ added Mr Han.
Savills’ industrial director, Mr Dominic Peters, felt there was some demand for industrial sites up north, but there could be a mismatch in supply due to the nature of the sites being offered.
The new 1.68ha Woodlands plot put up for tender, for example, may be too small for companies looking for premises on the ground floor.
Mr Peters said developers would need at least 2ha to 3ha to build efficient ‘ramp-up’ buildings, which give each industrial unit in a multi-storey building ground-floor access via giant ramps.
Still, he expected demand for industrial sites to be ‘good’ for the next one to two years.
Source : Straits Times - 01 Jan 2008
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MoS Int’l takes suit against Singapore licensee to High Court
By Chua Hian Hou
A LONDON-BASED nightlife company is taking its lawsuit against the firm running the Ministry of Sound (MoS) club in the Republic to Singapore’s High Court.
Ministry of Sound International earlier filed a suit against the Singapore licensee in the British courts, but it seems it has now moved this legal action over to the courts in the Republic.
The MoS outlet at Clarke Quay, which opened in 2005, is run by LB Investments, a subsidiary of listed Singapore firm LifeBrandz.
LifeBrandz told the Singapore Exchange last Friday that Ministry of Sound International has served a writ of summons on LB Investments.
It said the writ ‘alleges breaches of certain terms and conditions of a licence agreement pertaining to the ‘Ministry of Sound’ brand’.
LifeBrandz said it would ‘vigorously defend’ the ‘unmeritorious’ allegations.
The same announcement also said that Ministry of Sound International had ‘discontinued’ its ‘entire claim’ against LB Investments. These claims had been originally filed with the High Court of England and Wales in mid-November.
The lawsuit earlier filed in Britain alleged that LB Investments had violated its licensing guidelines. The alleged violations included not playing the right type of music, not maintaining a stable website and not using the right staff uniforms.
Ministry of Sound International was reportedly suing LB Investments for damages and to force it to stick to its licensing guidelines.
A LifeBrandz spokesman could not be reached for comment yesterday.
LifeBrandz shares closed unchanged at 5.5 cents yesterday.
Source : Straits Times - 01 Jan 2008
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What’s new in 2008 - Singapore
The new year is a time for new beginnings. TARA TAN takes a look at some policy changes in January
FOR ADULTS: From today, CPF members will earn an extra 1 percentage point interest on their first $60,000 in CPF accounts. — BT FILE PHOTO
WORKFARE PAYOUTS
ABOUT 287,000 low-wage workers will receive between $180 and $2,400 in the course of this year - this is based on their age and the income they earned last year.
Employees will receive their payouts partly in CPF credits and partly in cash. Self-employed persons and informal workers who have contributed to their Medisave will have their payouts credited entirely into their Medisave account.
The Workfare Income Supplement (WIS) is meant intended to make up for the cut in CPF contribution rates for older low-wage workers which took effect last July. The first of two WIS payouts happens this month.
PART 2 OF UTILITIES REBATE
ELIGIBLE HDB households will each receive $50 to $110 in rebates - depending on flat type. This is meant to help cushion the impact of the two percentage point hike in the goods and services tax (GST) which took effect from July last year.
MORE CPF RETURNS
FROM today, CPF members will earn an extra 1 percentage point interest on their first $60,000 in CPF accounts.
Of this, only up to $20,000 can come from the Ordinary Account (OA). So this means that at least $40,000, or all $60,000, can come from the Special, Medisave and Retirement Accounts.
Extra interest earned will go into Special or Retirement Accounts.
REQUIRED AMOUNT IN MEDISAVE GOES UP
CPF members who turn 55 and meet the Minimum Sum of $99,600 must set aside a higher Required Amount in their Medisave Accounts when they make a withdrawal.
This is to ensure members have enough savings to meet their health-care needs during old age.
From today, the Required Amount will be raised from the current $11,500 to $14,000.
HIKE IN ELECTRICITY PRICES
From today, the electricity tariff will go up by nearly 6 per cent, to 22.62 cents per kilowatt-hour (kWh) from 21.38 cents per kWh previously.
This will result in an increase of between $1.30 and $5.50 a month in electricity costs for families in one- to five-room HDB flats.
SALARY REVISIONS FOR TOP CIVIL SERVANTS
From today, ministers and senior permanent secretaries at grade MR4 will get $1.94 million in annual pay, up from this year’s $1.6 million.
Administrative Service officers entering the superscale grades will get pay increases of 4 per cent, raising their annual salaries to $398,000.
This, according to the Government, is meant to keep civil service pay in line with rising salaries in the private sector and to retain talented individuals.
INCREASE IN EDUSAVE ACCOUNT
The Government will increase Edusave contributions by $10 to $180 for those studying at primary school level, and by $20 to $220 for secondary school students.
Those studying in government and government-aided schools can use it to pay part of their tuition. They can also use it to go for school-based enrichment courses and activities.
EM3 STREAM SCRAPPED
The unpopular stream, which groups the weakest primary school pupils, will be scrapped this year.
Instead pupils will be banded according to their strengths in specific subjects, so a pupil strong only in maths will study it at the standard PSLE level - but he will take English and mother tongue at the easier foundation level, for instance.
INCREASED ACCESS TO S-PASS HOLDERS
To help meet the growing industry demand for mid-skilled foreign workers, companies will have greater access to S- Pass holders.
With effect from today, the S-Pass quota for all sectors will be increased from 15 to 25 per cent.
MEDICAL INSURANCE FOR FOREIGN WORKERS
The Ministry of Manpower will require employers to purchase and maintain insurance for the medical expenses of foreign workers from today.
The coverage must be at least $5,000 a year for each worker’s hospital bills in Singapore.
This requirement is being implemented in tandem with the withdrawal of health-care subsidies for foreigners, announced previously by the Ministry of Health
ENERGY EFFICIENT AIR-CONS AND FRIDGES
From today, the two biggest home energy guzzlers, air-conditioners and refrigerators, must be sold with energy-efficiency labels. The more ticks there are on the label, the more energy-efficient the appliance. For instance, an air-conditioner with three ticks can save $500 a year in electricity costs.
Failure to comply will mean a penalty of up to $2,000. It is hoped that this initiative will reduce carbon emissions by about 1,400 kg a year.
TOUGHER PENALTIES FOR COSMETICS WITH BANNED SUBSTANCES
The new year brings stiffer penalties to cosmetics companies whose products sold in Singapore are found to be adulterated or contain banned chemicals and preservatives.
Offenders can fined up to $100,000 and the maximum jail term is three years.
Users can also expect to see better labelling such as dates of manufacture and expiry, as well as handling precautions.
Source : Straits Times - 01 Jan 2008
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Singapore Court ends ex-con’s persistent attempts to ‘clear his name’
Property agent convicted of perjury filed four ‘groundless’ bids to quash conviction
By Selina Lum
A HIGH Court judge has put a stop to the persistent attempts by a property agent to quash his criminal conviction for perjury.
Despite having served his jail term after exhausting all legitimate avenues of appeal, Mr Tee Kok Boon has been trying again and again to get the courts to re-hear his case.
Between March 2006 and April last year, he filed no fewer than four court applications - known as criminal motions and criminal revisions - all of which were dismissed.
Finally, in July last year, in a rare move, the Attorney-General sought a High Court order to restrain Mr Tee from filing any further court action without the permission of the High Court.
Solicitor-General Walter Woon, representing the Attorney-General, had applied to Justice Woo Bih Li for the order in November on grounds that Mr Tee has instituted vexatious legal proceedings ‘habitually and persistently and without any reasonable ground’.
Mr Tee’s assigned lawyer, Mr Gregory Vijayendran, argued that this did not apply to criminal proceedings.
In his 44-page written judgment on Friday, Justice Woo agreed with the Attorney-General and barred Mr Tee from launching any more criminal legal proceedings relating to his conviction.
Mr Tee’s legal problems stemmed from a dispute with a client and her husband over commissions payable for a tenancy deal in 2001.
This led him to be investigated for giving false evidence at a Small Claims Tribunal hearing. He was found guilty by a district court and jailed 10 months in December 2004.
In June 2005, he appealed against the conviction. He also applied to introduce fresh evidence. He claimed he had proof that the husband fabricated evidence - in the form of a newspaper advertisement - during the trial.
His case was dismissed by then-Chief Justice Yong Pung How, which meant he had no further appeal avenues.
After he was released from prison, Mr Tee did not stop trying to ‘clear his name’.
In March 2006, he applied for the case to be heard by the Court of Appeal on the basis of important issues of law. This was thrown out.
He also sought a revision of his conviction and sentence. This was dismissed by Justice Tay Yong Kwang in August 2006.
Undeterred, he filed another application to review his conviction and to get the Attorney-General to investigate the alleged fabrication. This was dismissed by Justice V. K. Rajah in March last year. The following month, he had another go, filing a High Court application for his conviction to be quashed.
Apart from court action, Mr Tee also took other steps.
He started a private prosecution against the husband regarding the advertisement, but the police closed the case.
Dissatisfied, he wrote to the Attorney-General, requesting that he be allowed to prosecute the husband, but this was rejected.
In his judgment, Justice Woo said of Mr Tee: ‘He simply refuses to accept the finality of the decision by Chief Justice Yong.’
Justice Woo noted that Mr Tee was ‘unable or unwilling to understand’ that whether his allegation about the advertisement is true or not, it has no bearing on his conviction.
In other words, whether the husband had lied is a separate point from whether Mr Tee had lied.
He added: ‘It is not enough that Tee sincerely believes in the justice and correctness of his cause.’
According to the law, Mr Tee cannot appeal against Justice Woo’s decision.
The background to the case
AFTER housing agent Tee Kok Boon found a tenant for a property belonging to his client, Madam Heng Siew Ang, a dispute arose as to whether she should pay his employer, OK Property, a $2,000 commission.
The property firm tried to recover the commission at the Small Claims Tribunal.
At the tribunal hearing, Mr Tee testified that he had witnessed Madam Heng sign a letter agreeing to pay the commission.
Madam Heng then lodged a police report on May 18, 2002, that she believed her signature was forged.
Six days later, the tribunal ruled against Madam Heng, holding that there was no evidence to show that her signature was forged. Therefore, she had to pay the commission.
Subsequently, the police investigated her allegations and Mr Tee was eventually hauled to court.
He was charged with giving false evidence at the tribunal hearing.
During the ensuing trial, he admitted that Madam Heng did not sign the letter in his presence. However, he assumed she had signed it because he saw her signature.
The district judge convicted Mr Tee and sentenced him to 10 months’ jail.
Source : Straits Times - 01 Jan 2008
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Fourth-quarter growth slower than expected - Singapore
Economists derive a figure of 6.4 per cent based on full-year growth of 7.5 per cent
By Erica Tay, Economics Correspondent
THE Singapore economy appears to have slowed more than expected.
In his New Year address yesterday, Prime Minister Lee Hsien Loong said gross domestic product (GDP) - economic output - had expanded by 7.5 per cent last year.
Private sector economists have calculated that this means the economy grew by 6.4 per cent in the fourth quarter, from a year earlier. While that is still very robust growth, it follows sizzling expansion of nearly 8 per cent in the first nine months.
The derived fourth-quarter figure is below a median forecast of 7.7 per cent taken from a poll by Bloomberg of 15 market economists.
The economy roared ahead by 9.4 per cent in the July-to-September quarter.
‘Most people were expecting fourth-quarter growth to be around 8 per cent. The latest figure shows the economy is likely to have contracted from the third to the fourth quarter,’ said Standard Chartered Bank economist Alvin Liew.
A major letdown came from drug manufacturers, which dragged down overall industrial performance, said economists.
In addition, the financial services sector, one of the stars of Singapore’s economic boom for much of last year, was likely to have been hit by the global credit crunch, said DBS Bank economist Irvin Seah.
‘After the sub-prime crisis surfaced in August, there was a bit of recovery, but the underlying fear remains. Volatility and fear still rule the financial markets,’ said Mr Seah.
Economists widely expect the slowdown to become more pronounced this year.
Besides a less-than-rosy growth outlook, there is also an added headache to grapple with: inflation.
‘In previous years, we had a fairy tale sort of economy, with very high growth and incredibly low inflation. But the boom cycle has turned,’ said Citigroup economist Chua Hak Bin.
After enjoying above-trend growth for a few years, the supply crunch has hit home, he said. ‘There is a real likelihood of inflation hitting 6 per cent in January.’
Inflation, which reached a 25-year high of 4.2 per cent in November, will be a key worry in the new year, said United Overseas Bank economist Ho Woei Chen. ‘With the substantial hike in taxi fares, and food supply prices still rising, we could see inflation average 5 per cent throughout 2008,’ she said.
Economists said there was also a risk of ’second-round’ effects of inflation. Workers will probably demand higher wages to make up for higher living costs, Ms Ho said. ‘But with the economy slowing down, employers are less likely to raise salaries by too much.’
Mr Seah of DBS agreed: ‘We are likely to see a period of higher inflation and slower growth.’ But in the longer term, this would not persist, as the underlying fundamentals of Singapore’s economy remain strong, he added.
On the jobs front, the new year will probably not bring about the same bumper jobs growth seen last year.
However, massive jobs cuts announced by beleaguered financial giants are not likely to hit Singapore’s red-hot financial services sector severely, Mr Liew said.
‘Asia remains a growth area for banks. In the 2001 slowdown, major banks slashed jobs in the region, only to have to rehire aggressively and pay much more when things got better,’ he said, arguing that employers will not repeat the same mistake.
‘It’s a good finish for 2007,’ said Dr Chua of the latest GDP figures. ‘But the challenges for 2008 will be a lot more.’
Source : Straits Times - 01 Jan 2008
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Pledge to help the needy cope with rising costs-Singapore
NEEDY and older Singaporeans have received a pledge from PM Lee Hsien Loong. They will get more help to cope with the rising cost of living if finances permit.
Giving an assurance that the Government has not forgotten the retired Singaporeans living off their savings, he said yesterday: ‘With the strong economy this year, government revenues have been buoyant.
‘Our finances permitting, we should have something more in the FY2008 Budget to help needy and older Singaporeans.’
Mr Lee, in acknowledging that the cost of living is a key concern of Singaporeans, devoted a significant part of his annual New Year message to the issue.
Inflation hit a 25-year high of 4.2 per cent in November compared to a year ago.
The Prime Minister offered three key reasons for the rise: the July hike in the goods and services tax (GST) from 5 per cent to 7 per cent; the upward revision of annual values of Housing Board flats; and the worldwide increase in prices of food and energy.
But he also stressed that measures have been taken to cushion the impact on Singaporeans, especially the lower-income.
For the GST increase, he noted that the offset package gave poorer Singaporeans more than the extra tax they have to pay.
As for the taxman’s revision of HDB flats’ annual values, which raised the consumer price index, he says ‘in reality’ it does not affect the 95 per cent of HDB families who own their homes and do not pay rent.
To ease the burden of the spike in food and energy prices, the Government is encouraging NTUC FairPrice and other supermarkets to find new supply sources and offer house brands for essential items.
But while prices have gone up, earnings have also gone north, he noted, and generally by more than inflation. ‘That is why shopping malls were thronged with Christmas shoppers, and tourist agencies have had a record year arranging overseas holidays for Singaporeans.
‘So although nobody likes to see prices go up, most working Singaporeans should be able to cope, and in reality are better off despite the inflation,’ PM Lee added.
He also urged Singaporeans to do their part in improving their skills and earn more as it will ’stand you in good stead as economic conditions continue to change’.
Marine Parade GRC MP Seah Kian Peng was glad that the cost of living featured highly in the PM’s message. ‘It shows the Government is hearing the ground,’ he said.
‘While many of us have good reason to cheer and celebrate the new year, it is important to send a signal there’s also a group that we should try to help.’
Source : Straits Times - 01 Jan 2008
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PM sets 2008 agenda in 3 areas - Singapore
2007: Singapore chalked up growth of 7.5 per cent
2008: Dynamic Asia gives reason for cautious optimism
By Peh Shing Huei
PRIME Minister Lee Hsien Loong yesterday set the Government’s agenda for 2008: It will tackle major issues in three areas that have a significant impact on Singaporeans’ lives - in health care, transport and education.
He said the problems were challenging but believed that Singapore was in a strong position to address them.
In his traditional New Year message, he said Singapore enjoyed ‘another year of robust expansion’ and announced that the economy grew by 7.5 per cent last year.
This is at the lower end of the forecast of 7.5 per cent to 8 per cent, indicating slower growth in the fourth quarter.
Mr Lee noted the slowdown, but in looking ahead, said he was ‘cautiously optimistic’ for 2008.
Although the United States may go into a recession, he is confident its impact here would be offset somewhat by the strong momentum of Asian economies.
Singapore’s economy is expected to grow by 4.5 per cent to 6.5 per cent this year.
Several major projects will also be completed, he noted, with the Singapore Flyer whirling to life in March and the inaugural Formula One race revving up in September.
But he cited in particular how the Government’s focus will be on a trio of issues which impact on the everyday lives of people.
In health care, he said new hospitals and specialty centres will be set up, with more doctors and nurses to ramp up services, cut crowding and slash waiting times.
The Government will spend more in this area, and ensure health care remains affordable for all, he promised.
But that entails targeting subsidies at those who need help most, with the rich paying more than the poor.
‘This calls for means testing. We already have means testing in nursing homes, and should now implement it for hospitals too,’ he said, adding that the scheme will be discussed and finalised in the next few months.
On land transport, a review is under way, with attention especially on improving public transport so that more people take buses and trains.
‘Our roads are getting more crowded and traffic jams are worsening. We have to lower the vehicle growth rate and step up measures to manage the demand for road space,’ he said.
While there will be more Electronic Road Pricing to discourage car usage, it will be balanced by lower vehicle ownership taxes.
Ang Mo Kio GRC MP Lam Pin Min, who is on the Government Parliamentary Committees for Health and Transport, said the Government would have to explain the rationale behind these policies, which could ’cause pain to some and relief to others’.
He believes means testing is the fairest way to allocate resources, but said ‘the devil lies in implementation - who should get more, who should get less’.
On education, PM Lee wants more Singaporeans going beyond the secondary school level and said more should receive a subsidised university education. That accounts for the increase in publicly-funded university places to take in 30 per cent of every cohort by 2015. He also said ‘the case for a fourth publicly-funded university is already clear’.
These areas of attention follow major changes last year when the Central Provident Fund scheme was revamped; public sector salaries were raised; and the Workfare Income Supplement scheme was launched to top up salaries of older and low-income workers who stayed on the job.
Those changes came in booming times which saw a record number of jobs created, the lowest unemployment in almost a decade, and record investments.
But such successes also led to problems, he said, citing a shortage of prime office space, resource constraints and a tight labour market.
Inflation also picked up in recent months, causing concern for Singaporeans, he acknowledged.
But the new year looks bright: ‘As long as we continue to work together and support each other, we can all look forward to a brighter future for our nation and for ourselves.’
Source : Business Times - 01 Jan 2008
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Industrial land sales late hints at slowdown - Singapore
MTI puts only one site on confirmed list, although it keeps 7 sites on reserve list
THE Ministry of Trade and Industry (MTI)’s industrial land sales programme for H1 2008 seems to reflect a slowdown from the preceding programme for H2 2007.
MTI is releasing just one site through the confirmed list in the latest slate, a 1.68 hectare site at Woodlands Industrial Park that can be developed into a project with a maximum gross floor area (GFA) of 42,000 sq metres.
In contrast, the H2 2007 programme had two confirmed list sites with a total maximum potential GFA of 156,900 sq metres.
Both sites have been sold. The government launches tenders for confirmed list sites according to a prestated schedule, regardless of demand.
And although MTI is sticking to seven reserve list sites - these are launched only upon successful applications by developers - for H1 2008, the 174,570 sq metres maximum GFA they can potentially yield is slightly lower than the 190,800 sq metres that can be generated from the seven reserve sites in the H2 2007 programme.
‘… the reserve list for H1 2008 having seven sites will ensure there’s sufficient supply - if developers and industrialists identify demand
for them.’
- Colliers International MD Dennis Yeo
‘Perhaps the MTI’s slowdown in industrial land sales reflects its own outlook of slower economic growth for 2008,’ a senior property consultant suggested.
Agreeing, another veteran consultant, Colliers International managing director Dennis Yeo, said: ‘They probably want to moderate industrial land supply because economic growth is likely to be slower in 2008. Nevertheless, the reserve list for H1 2008 having seven sites will ensure there’s sufficient supply - if developers and industrialists identify demand for them.
‘The reserve list method of supplying land is market-led rather than force feeding the market, which is what the confirmed list can sometimes be,’ Mr Yeo said.
The latest slate of reserve list sites comprises three new plots at Ubi Ave 4, Kallang Pudding Rd and Serangoon North Ave 4, and four sites which are being rolled over from the H2 2007 reserve list - comprising two plots at Yishun Avenue 6, and a site each at Toh Tuck Avenue and Ubi Ave 4/Ubi Road 2.
Among the newer sites, property consultants ranked the ones at Ubi and Kallang Pudding as the choicest. Savills Singapore head of industrial Dominic Peters observes that all three new reserve sites are relatively small plots (ranging from 0.54 hectare to 1.14 hectares in land area) and expects them to attract strong response.
‘The best would be the Kallang Pudding and Ubi sites; they’re likely to fetch around $55-60 per square foot per plot ratio’, citing their location in the central part of Singapore and assuming they are close to the Circle Line MRT Stations.
Colliers’ Mr Yeo predicts the Kallang Pudding and Ubi plots may fetch much higher prices - $70-100 psf ppr. ‘If the sites are within close proximity to the new Circle Line MRT Stations, the timing of their development would be just right,’ he added.
Seven of the eight sites in the latest slate are being offered on 60-year leasehold tenure, while the reserve list plot at Toh Tuck Avenue has a 30-year leasehold tenure.
With the exception of the Woodlands Industrial Park plot which is zoned Business 2 (B2), the other seven plots are zoned for Business 1 (B1) meaning they can be developed for a range of clean and light industrial, and warehouse use.
B2 sites can be used for B1 purposes as well as for general industrial use.
Source : Business Times - 01 Jan 2008
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A year of mixed results for property firms - Sinagpore
By CONRAD TAN
IT WAS a year in which property prices soared and the earnings of property companies surged with them.
Caged in: The withdrawal of the deferred payment scheme for private property purchases led to a steep fall in the share prices of Singapore developers
But the government’s move on Oct 26 to discourage speculative buying by withdrawing the deferred payment scheme for private property purchases led to a steep fall in the share prices of Singapore developers in November and December, wiping out most of their gains earlier in 2007.
Most have not recovered, which means any gains in their market value over the year were lacklustre compared with advances of more than 80 per cent for the largest Singapore developers in 2006.
Among the bigger developers, GuocoLand saw its market value grow the fastest in 2007 - both in dollar and percentage terms.
Its market capitalisation rose from $1.72 billion at the end of 2006 to $5.01 billion at the end of trading yesterday - an increase of almost three times.
By contrast, CapitaLand, the largest developer here, ended the year with a market cap of $17.6 billion, just 2.1 per cent higher than at the end of 2006.
City Developments, the second-largest developer here, saw its market cap rise 11.8 per cent during the year to $12.9 billion.
Keppel Land’s market cap rose just 5.6 per cent to $5.24 billion, while UOL Group’s market cap rose 4.3 per cent to $3.6 billion. Singapore Land saw its market cap shrink 7 per cent to $3.3 billion.
Some of the smaller developers did turn in big gains. SC Global Developments, for example, saw its market cap rise from $372 million to $956 million during the year.
Overseas developers listed here also saw larger gains. Hongkong Land, a commercial developer in Hong Kong, saw its market cap grow 17.2 per cent to $16.4 billion.
And Yanlord Land, a mainland Chinese developer listed here, saw its market cap rise 47.1 per cent to $6.01 billion.
Source : Business Times - 01 Jan 2008
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Bank lending in November hits record pace too - Singapre
By CHEN HUIFEN
DOMESTIC bank lending here grew at another record pace in November, despite the breather seen in the property market that has led to a momentum slowdown in related loans.
According to preliminary data released by the Monetary Authority of Singapore, total property-related loans - including housing loans and lending to building and construction businesses - grew at a monthly pace of 1.4 per cent in November, from 3.2 per cent in October. On a yearly basis, however, property-related loans rose 19.3 per cent to $107.2 billion.
Such loans continued to boost banks’ lending business here, which chalked up total loans and advances of $226.5 billion in November. This is 16.3 per cent higher than in November 2006 and the fastest rate of total bank loan growth in more than 10 years.
Lending to building and construction firms jumped 29 per cent to $34.5 billion. This is the highest growth rate since 1995, when loans in this category were bursting above the 30 per cent growth mark as the market experienced a rise in property investments.
In the same month, home buyers borrowed $72.7 billion, or 15.2 per cent more than in the year-ago period. This is, however, faster than the 14.3 per cent growth rate seen in October.
Total loans to businesses went up 19.4 per cent to $121.5 billion, while consumer loans rose 12.9 per cent to $105 billion.
Lending to most business segments saw growth. Transport, storage and communication firms borrowed 40.9 per cent more than a year ago, or a total of $9.1 billion in November. Borrowing by business services companies surged 36 per cent to $4.7 billion, while that by financial institutions and general commerce firms went up 19.1 per cent and 10.6 per cent respectively, to $28.2 billion and $22 billion.
On the other hand, manufacturing firms borrowed less. Loans in this segment continued their eighth month of year-on-year decline, falling 4.4 per cent to $10.4 billion. Loans to businesses engaged in agriculture, mining and quarrying also fell 14.8 per cent to $287.5 million. Within consumer loans, share financing lending registered the biggest growth, at 53.6 per cent, to $1.3 billion.
Source : Business Times - 01 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
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After robust year, govt prepares for test of ‘08 - Singapore
Major policy decisions will be taken on health care, land transport and education, says PM Lee
By CHUANG PECK MING
(SINGAPORE) Even as he took stock of another satisfactory year of growth, Prime Minister Lee Hsien Loong highlighted the challenges and opportunities coming Singapore’s way in 2008.
He also stressed that the coming year could see the government taking significant policy decisions in at least three areas - health care, land transport and education.
The economy eased in the the final quarter of 2007 but growth for the full year is still robust. Mr Lee, in his traditional New Year Message yesterday, said that the economy grew 7.5 per cent.
This means that it is still within the recently revised official forecast range of 7.5-8 per cent. Manufacturing and services are both doing well - especially the construction and financial services sectors.
And while cautiously upbeat about 2008 in the face of a possible US recession, Mr Lee maintains that a more diversified Singapore economy is still likely to meet the government’s growth forecast of 4.5-6.5 per cent in the coming year.
‘A US downturn would affect Asia too, but the impact on us would be offset somewhat by the strong momentum in the dynamic Asian economies.’
- PM Lee
‘A US downturn would affect Asia too, but the impact on us would be offset somewhat by the strong momentum in the dynamic Asian economies,’ he said in one of the longest Prime Minister’s New Year Message in recent memory.
The coming onstream of several major projects on the home front - The Singapore Flyer, F1 Singapore Grand Prix, The Marina Barrage - would also help to cushion any fallout from a US recession.
‘Many major projects are underway (in Singapore), which when completed will upgrade our infrastructure and economy,’ Mr Lee said
In his five-page-long message, the prime minister anticipates three big challenges for the government to tackle in the new year - health care, land transport and education.
Noting that roads have become more crowded and traffic jams are worsening, Mr Lee said that the government must ‘update’ its policies on car ownership and usage.
‘We have to lower the vehicle growth rate and step up measures to manage the demand for road space,’ he said. ‘We need to enhance the ERP and extend its coverage so that driving costs significantly more, but we will balance that with lower vehicle ownership taxes.’
Mr Lee said that in the government’s land transport review, a key focus will be to improve public transport, to encourage Singaporeans to take buses and trains instead of driving cars.
‘We can do more to make public transport a choice of travel,’ he said.
On health care, Mr Lee said that the government would spend more to expand and upgrade services. But he reiterated that means-testing would be introduced to ensure that higher-income patients will co-pay a larger share than poorer patients.
‘We already have means-testing in nursing homes, and should now implement it for hospitals too.’
On education, Mr Lee said that the government would also continue to invest heavily. In particular, it will expand publicly funded university places to take in 30 per cent of every cohort by 2015.
More immediately, Mr Lee noted, the government has taken steps to deal with the ‘problems of success’ - shortage of office space, resource constraints in the construction industry and a tight labour market.
It has released enough land to meet demand for more office space in the next few years and postponed some less urgent projects, according to him. And the answer to labour shortage is upgrading and re-skilling of workers and opening the door to more foreign talent.
As for the growing concern about inflation, Mr Lee hinted that the coming government budget ’should have something more . . . to help the needy and older Singaporeans’.
Mr Lee said that prices have gone up because of the hike in goods and services tax, a revision of the annual values of HDB flats and higher food and energy prices.
While the revision of annual values for HDB flats would raise the consumer price index, Mr Lee said that it would not affect the 95 per cent of HDB households that own their homes - and so do not pay any rent.
Source : Business Times - 01 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
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Wilmar’s amazing rise fronts ‘07 growth story
Stock market cap up 33.5% in the year; Wilmar left banks behind
By CONRAD TAN
(SINGAPORE) The Singapore stock market ended 2007 sharply higher despite the turbulence in the second half of the year, driven by explosive growth in the energy, commodities and marine sectors.
Trading for the year ended yesterday with the total market capitalisation at $797.8 billion, up 33.5 per cent or $200 billion from $597.8 billion at the end of 2006.
Over the month of December, the total market capitalisation of Singapore-listed companies rose 1.1 per cent or $8.3 billion from $789.5 billion at the end of November.
The Straits Times Index (STI) of blue-chip stocks ended the year 16.6 per cent higher at 3,482.30, after rising 1.1 per cent yesterday. For the month, the index was down 1.1 per cent.
A global boom in the demand for oil, food and other commodities saw companies in the traditional and alternative energy sectors as well as shipping and logistics chalk up some of the largest gains in 2007.
Roughly three stocks gained for every one that fell in market cap.
The single biggest gainer in dollar terms was Wilmar International, an Indonesian palm oil business that listed here in July 2006 through a reverse takeover. Its market capitalisation rose an astonishing $28.3 billion in 2007 to $34.4 billion at the end of trading yesterday - roughly five-and-a-half times what it was at the end of 2006.
The enormous gain means that Wilmar is now the second largest company listed on the Singapore Exchange, ahead of the banking groups.
SingTel - still by far the largest company listed here - ended the year worth a massive $63.6 billion, after the telecommunications group’s market capitalisation rose 22.1 per cent or $11.5 billion in 2007.
The stock market also got a boost from several reverse takeover deals. The largest of these was Indofood Agri Resources, the new entity that emerged after Indofood Sukses Makmur - owned by Indonesian tycoon Anthoni Salim - injected some $390 million worth of oil palm plantations and edible oils and fats refining businesses into Sesdaq-listed CityAxis Holdings.
The backdoor listing - completed last January - and the subsequent doubling in IndoAgri’s share price enlarged the market capitalisation of the listed entity from $51.3 million at end-2006 to $3.5 billion at the end of trading yesterday.
A third palm oil group - Golden Agri-Resources - also saw enormous gains. Its market capitalisation grew by $7.95 billion over the year to $10.6 billion - four times what it was at the end of 2006.
Coal mining group Straits Asia Resources saw its market capitalisation balloon from $608 million to $3.4 billion in just 12 months, after it secured new mining licences in Indonesia.
Meanwhile, Hong Kong- based Noble Group, which supplies commodities ranging from coffee and sugar to coal and steel, saw its market capitalisation rise to $6.3 billion, from just $2.65 billion at the end of 2006.
Shipping groups such as STX Pan Ocean, Cosco Corp, and Neptune Orient Lines also saw large gains, as did steelmaker FerroChina.
Notably absent among the large gainers this year were the banks.
As investors around the world struggled in the second half to unravel losses on debt securities linked to sub-prime mortgage loans in the US, uncertainty over the value of such securities held by banks here saw the bank stocks give up most of their earlier gains.
In fact, DBS Group - the largest of the three Singapore-listed banks - saw the largest drop in market capitalisation by dollar value during the year among the stocks listed here. Its market capitalisation fell 8 per cent or $2.7 billion to $31.4 billion at yesterday’s close, behind Wilmar’s $34.4 billion.
After DBS, Singapore Airlines shed the most weight, its market capitalisation slipping 5 per cent or $1.1 billion to $20.6 billion.
Some $25 billion of the 2007 year-end market capitalisation came from more than 60 new listings during the year, including property, shipping and business trusts.
Of the existing listings, roughly three stocks gained for every one that fell in market cap over the year.
Other major beneficiaries of the global boom in the oil and gas and construction sectors included crane rental company Tat Hong Holdings, which saw its market capitalisation swell from $533 million to $1.73 billion, and marine engineering firm Swiber Holdings, whose market cap quadrupled from $349 million to $1.46 billion.
And in a year that saw trading volumes rise to record highs - sometimes overwhelming the SGX’s computer systems - SGX’s own market capitalisation soared to $14.3 billion, more than double the $6 billion it was worth at the end of 2006.
Analysts say that stock prices are likely to stay volatile in early 2008, as investors wait for companies to report their 2007 fourth-quarter results to assess the impact of higher oil prices and slowing economic growth in the US on their profits.
Beyond that, many forecast that economic growth in Singapore will remain strong in 2008. This, together with further interest rate cuts expected in the US and Europe, should keep the stock market rising in 2008, albeit at a slower pace than last year, say analysts.
Source : Business Times - 01 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Govt to release 9.3 hectares under H1 industrial land sales programme - Singapore
By Loh Kim Chin
SINGAPORE : The government will be releasing about 9.3 hectares under its industrial land sales programme for the first half of next year.
A total of eight sites have been included in the sales programme - one on the Confirmed List an