Bank lending in November hits record pace too - Singapre

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

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After robust year, govt prepares for test of ‘08 - Singapore

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

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Wilmar’s amazing rise fronts ‘07 growth story

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

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Govt to release 9.3 hectares under H1 industrial land sales programme - Singapore

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 and remaining seven on the Reserve List.

The site on the Confirmed List site covers 1.7 hectares in Woodlands Industrial Park.

The 60-year lease parcel has a plot ratio of 2.5 and is expected to be released in May.

The sites on the Reserve List sites include three sites at Ubi Avenue 4, Kallang Pudding Road and Serangoon North Avenue 4.

The remaining four sites are two sites in Yishun Avenue 6 and one each in Toh Tuck Avenue and the junction of Ubi Avenue 4 and Ubi Road 2. - CNA/ch
Source : Channel NewsAsia  - 01 Jan 2008
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EDB draws record S$16b in fixed asset investments in manufacturing - Singapore

EDB draws record S$16b in fixed asset investments in manufacturing - Singapore

By Yvonne Cheong

SINGAPORE : The Singapore economy grew 7.5 percent for the whole year.

This was revealed by Prime Minister Lee Hsien Loong in his New Year Message on Monday.

The figure is in line with the government’s forecast for a 7.5 to 8 percent expansion.

He also said that the Economic Development Board (EDB) drew a record S$16 billion in fixed asset investments (FAI) in manufacturing this year - almost double the S$8.8 billion posted in 2006.

With the full-year growth coming in at 7.5 percent, analysts say this works out to a 6 percent expansion in the fourth quarter.

This is down from the 8.9 percent pace in the previous three months - tempered by muted manufacturing figures in October and November.

Economists say it’s likely services, in particular financial services, didn’t hold up as well as they should have.

Vishnu Varathan, Regional Economist, Forecast, said: “The guess would be right away that services and maybe financial services didn’t perform as well as would have been expected, or at least from the kind of growth rate that was seen in the third quarter.”

Still they say a 7.5 percent pace for the full year is commendable for a developed economy like Singapore’s.

The government is estimating growth next year to be a more moderate 4.5 to 6.5 percent, and economists are equally, if not more, upbeat.

They say structural changes in sectors such as services have been key to the robust economy.

Jimmy Koh, Head of Economics-Treasury Research, UOB, said: “To a certain extent, we have underestimated the effect of these structural changes and how investors and market respond. Partly also we’re operating in a fairly moderate environment. Liquidity is still there. That’s why we’ve seen property prices escalating in a big way, far beyond our understanding as Singaporeans. Next year wise, the situation is a lot due to external risk and I won’t be surprised if we could have another outperformance.”

The S$16 billion of FAI in manufacturing recorded for 2007 include the second world-scale petrochemical complex by ExxonMobil and the world’s largest integrated solar plant to be built by Norwegian firm REC.

The EDB also attracted projects generating S$3 billion of total business spending in services.

Vishnu Varathan said: “I think what actually happens with all these fixed asset investments are basically two things. One is of course, increase in capacity, so we’re actually increasing the capability of the economy to produce stronger numbers going forward in the longer run. The other is that we are diversifying away from our traditionally electronics base. We’re (now) investing more in biomedical, we’re investing more in petrochemical and we’re investing more in life sciences. These are sectors that will offer some buffer against global economy or global economic slowdown.”

On inflation, the Prime Minister said while prices have gone up, so have earnings.

In his New Year Message, PM Lee said his government will be tackling three significant policy decisions in the coming year - in healthcare, in land transport, in particular car ownership and road congestion and in education.

He said the Singapore economy is in a strong position and weather well even the effects of a slowdown in the US economy. - CNA/ch
Source : Channel NewsAsia  - 01 Jan 2008
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40 buildings apply for BCA Green Mark Certificate - Singapore

40 buildings apply for BCA Green Mark Certificate - Singapore

By Wong Mun Wai
SINGAPORE: 40 public and private buildings have applied to receive the energy-saving Green Mark certificate.

So far, 67 of them have been given the certificate for different levels of energy efficiency since the scheme started two years ago.

The figures were given at an international conference on environmentally friendly architecture.

The City Square Mall was the first to receive the highest level of the Building and Construction Authority’s Green Mark.

And it is among a rising number of private properties since the beginning of the year to receive the platinum certificate.

Getting the certificate indicates that the property has achieved at least 30 per cent in energy savings.

From the first quarter of next year, new and retrofitted existing buildings must achieve at least 10 per cent in energy efficiency.

The BCA aims for the new buildings to save energy and money.

Jeffery Neng, Deputy Director, Technology Division of the Building and Construction Authority, said: “The new developments versus the existing stock is still a very small proportion. That is the reason why we can only achieve S$180 million in ten years time per year.”

The BCA is working with the recently formed Energy Efficiency Programme Office.

For the Green Mark, both new public and private buildings need to be energy and water efficient in their site and project management among others.

And some properties are in line to be the first to renew their three year certificates in a BCA audit.

Six properties - mostly in the city including Republic Plaza have made enquiries to renew their Green Mark certification. The others include Capital Tower and One George Street. The owners of the properties have until 2008 to renew their certificates. -CNA/vm
Source : Channel NewsAsia  - 01 Jan 2008
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Thousands at New Year countdown parties across S’pore

Thousands at New Year countdown parties across S’pore
By Asha Popatlal/Margaret Perry,
SINGAPORE: Thousands of people gathered at various countdown parties across Singapore to say goodbye to 2007 and hello to 2008.

One of the biggest crowds was at Marina Bay where more than 160,000 revellers had gathered.

At the stroke of midnight, an eight-minute fireworks display entertained the crowds.

The crowds were also kept enthralled by a host of performances by three local bands.

Over at VivoCity, revellers were entertained by MediaCorp artistes and “Live the Dream” stars.

With just 1,500 tickets available for the amphitheatre seats and mosh pit, fans had queued for hours to get a piece of the action.

The queue started as early as 3pm, five hours before the countdown concert begin.

With so many stars performing, fans had their own favourites.

“Taufik (Batisah), and they have Ravalina, and By Definition, Fandi and lots more, that’s why we are here,” said a group of revellers.

“….(I came) to support Alvin Ng,” said another reveller.

“We’ve come for Julian Gomez, Hady Mirza and Taufik Batisah,” said a third group of revellers.

The countdown party at VivoCity was flanked by events on both sides.

To the south at Sentosa, there was the Siloso Beach Party and just above, The Jewel Box at Mount Faber. - CNA/ir/de
Source : Channel NewsAsia  - 01 Jan 2008
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S’pore economy grows 7.5% in 2007: PM Lee

S’pore economy grows 7.5% in 2007: PM Lee

By S Ramesh,

Singapore’s economy has grown 7.5 percent for the whole of 2007, said Prime Minister Lee Hsien Loong in his 2008 New Year Message.

And he remains cautiously optimistic about the outlook for the new year.

Mr Lee also spelt out significant policy decisions in the areas of healthcare, land transport and education Singaporeans would have to face in 2008.

Singapore has enjoyed another year of robust expansion, although the fourth quarter saw slower growth.

The high growth has benefited all Singaporeans - a record 172,000 jobs have been created between January and September and unemployment is down to 1.7 percent, the lowest in almost a decade.

In 2007, the economic development board drew in a record S$16 billion of fixed asset investments in manufacturing and projects generating S$3 billion of total business spending in services.

For 2008, Mr Lee said he is cautiously optimistic.

The US may go into a recession because of the financial market problems and a US downturn would affect Asia too.

But he believes the impact on Singapore would be offset somewhat by the strong momentum in the dynamic Asian economies.

For Singapore, 2008 will see the realisation of several major projects, among them the inaugural F1 Singapore Grand Prix.

The first F1 night race ever will flag off in September.

All things considered, Mr Lee expects the Singapore economy to grow by 4.5 percent to 6.5 percent in 2008.

He however noted that inflation has picked up in recent months and this has caused concern to Singaporeans.

PM Lee said: “There are several reasons for this. First, the GST rate went up to 7 percent in July. However, the GST Offset Package has buffered that fully for lower-income citizens, who are receiving much more in offsets than the extra GST they have to pay. Second, IRAS has revised up the Annual Values of HDB flats. This will push up the Consumer Price Index, but in reality does not affect the 95 percent of HDB households who own their homes, and so do not pay any rents.

“Third, prices of food and energy have increased worldwide. This affects us directly, because we are a small and open economy, which imports all our food and fuel. But we are doing what we can to lessen the burden on Singaporeans, for example, by encouraging NTUC FairPrice and other supermarkets to find new sources of supply and offer house brands of basic essential items, and helping low-income families through U-Save and other rebates.”

Michael Palmer, MP - Pasir Ris-Punggol GRC, said: “From the ground we are already hearing people talking about the cost of living going up, food especially, basic necessities like rice, milk, bread. These people feel the pinch everyday. PM mentions, in his message, about the shoppers at Orchard Road. That may not be totally representative about the way people are feeling. It may be year-end bonus but when you look at the year forward and the rising cost of living, they have to deal with their monthly salaries and less that their money can buy.”

Prime Minister Lee assured Singaporeans that the government has not forgotten the concerns of the people, particularly retired Singaporeans, about rising prices.

He added that with the strong economy this year, government revenues have been buoyant and so finances permitting, the 2008 Budget should have something more to help older and needy Singaporeans.

Mr Palmer said: “I would like to see more put into the WIS scheme. I think that is a great scheme. It encourages employment all around, particularly in a good employment environment.”

While tackling immediate cost issues, Prime Minister Lee reminded Singaporeans of the need to continue to focus on long term strategies and he highlighted the significant policy decisions in 2008.

In the area of healthcare, the health ministry will expand the public sector health capacity to meet the growing needs and rising expectations of an ageing population.

Mr Lee said: “The Government will spend more on healthcare to expand and upgrade services, and keep healthcare affordable for all. We need to deploy our resources wisely, and target subsidies at those who most need help. Higher-income patients should co-pay a larger share than poorer patients. This calls for means-testing. We already have means-testing in nursing homes, and should now implement it for hospitals too.”

The Health Ministry will discuss and finalise the means testing scheme over the next few months.

Another challenge - making public transport a choice mode of travel and, parallel to that, the need to update policies on car ownership and usage.

Mr Lee said: “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. 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. Free flowing traffic is an important factor in the quality of urban life in Singapore.”

The third issue is education.

New paths will be opened for the young to make the most of their talents, including expanding the university sector and having of a fourth publicly funded varsity.

The government is increasing public-funded university places to take in 30 percent of every cohort by 2015.

And while the form is still being studied, the case for a fourth publicly-funded university is already clear.

The Prime Minister said Singapore will be tackling these three issues in 2008.

And he is confident that as long as Singaporeans continue to work together and support each other, they can look forward to a bright future for the nation and themselves.

Mr Lee wishes all Singaporeans a happy and fulfilling 2008. - CNA/ch

Source : Channel NewsAsia  - 01 Jan 2008
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