Singapore T3 opens doors to keep Changi a step ahead

Singapore T3 opens doors to keep Changi a step ahead

50% more capacity will help take on rising rivals; SIA to split operations between T2 and T3
By NISHA RAMCHANDANI

(SINGAPORE) Terminal 3, which will allow Changi Airport to handle 50 per cent more passengers and cement Singapore’s airhub status, officially opened its doors yesterday. A Singapore Airlines flight from San Francisco touched down around noon to kick off operations at the world’s newest airport terminal.

New kid on the block: Little Ajitesh Sunder and his sister Rashmi, both SIA passengers from San Francisco on the first flight to land at Changi T3 yesterday, having a ball at the brand new terminal
Apart from the state-of- the-art facilities, luxurious lounges and a markedly different travelling experience, the launch of the $1.75 billion T3 also means that SIA operations will be split between T3 and T2.

At the launch, Minister for Transport and Second Minister for Foreign Affairs Raymond Lim said that the new terminal would help meet the demands of the growing tourist and business traffic. It would also help Singapore face stiff competition from new airports in the region.

Bangkok’s new international airport could expand its capacity by more than 20 per cent to 55 million passengers a year. Beijing is building a new terminal to enable it to handle more than 60 million passengers, reported Bloomberg. Dubai, meanwhile, is building a new airfield that will be 10 times the size of the existing international airport.

Changi’s T1 and T2 can currently handle 44 million passengers. T3 will be able to take on another 22 million - a jump of 50 per cent.

However, T3 may see some teething problems as passengers get used to the new operating system.

‘The reality is that SIA has now grown to be such a large airline that we can no longer operate from a single terminal,’ said Stephen Forshaw, SIA’s vice-president of public affairs. ‘We are the fourth largest international airline. We’re looking at an airport facility that must project the growth we’re seeing in aviation and air travel in our region for the next 20 years.’

He pointed out that some of the world’s top airlines not only operate out of multiple terminals but even multiple airports. As a result, long-haul flights to regions such as Europe and the Americas will depart from T3, while medium and short-haul flights embarking for Africa, South Asia and the Middle East will remain at T2. In contrast, flights may touch down at either T2 or T3, with confirmation on the arrival terminal being made two hours ahead of arrival time. The information will be available on both the Changi Airport and SIA websites, via teletext as well as the flight enquiry hotline (1800-542-4422).

While SIA is the first carrier to operate from the new terminal for now, four other airlines - China Eastern, Qatar Airways, Jet Airways and United - will also start using T3 some time in March. Yesterday saw 27 departures and 37 arrivals breaking in the new terminal.

Responding to concerns that passengers could report to the wrong terminal, Mr Forshaw said the short distance between terminals, coupled with the sky train’s frequency, would provide for seamless and smooth movement to-and- fro should the need arise.

‘If we spend time transferring empty aircraft across the airfield, that’s going to contribute to delays in departures, which is not in the interest of customers,’ Mr Forshaw added. He also said SIA’s second Airbus A380 would arrive next week, and be deployed on the Singapore-Sydney route.

T3, which covers 380,000 square metres, features 28 aerobridge gates, of which eight are designed for the A380, while the high-speed inter-terminal baggage transfer system will have bags transported from T2 to T3 in the space of three minutes.

Passengers might choose to linger in SIA’s posh lounges, which the airlines have sunk some $30 million into. The private driveway leading to the first class check-in reception, replete with porter service, will make checking in much easier while the first class departure immigration lane will enable eligible customers to eschew the main immigration channel.

The 4,000 sq m SilverKris lounge is larger than T2’s 3,200 sq m one, offering free WiFi, food service counters, television areas and showers. Passengers can also look forward to a variety of brands and new retail concepts such as the FIFA Official Store, Ferrari and The Wellness Store. T3’s 110 retail stores and 40 F&B outlets cover 20,000 sq m, nearly doubling Changi Airport’s total retail and F&B space to 48,000 sq m.

T3 also comes equipped with unique roof architecture, consisting of more than 900 skylights with reflector panels, which allow a consistent amount of daylight to enter but keep the tropical heat at bay. The five-storey-high vertical garden, dubbed the Green Wall, is covered with climbing plants and interspersed with four cascading waterfalls.

Source : Business Times - 10 Jan 2008

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Gold hits record, copper soars as equities slide

Gold hits record, copper soars as equities slide

GOLD stormed to a fresh record high and copper hit a two-month peak yesterday as investors sought to hedge against inflation or to find alternatives to weak equity markets.
Spot gold hit a record US$891 an ounce, surpassing the previous high of US$881.10 reached on Tuesday, while London Metal Exchange copper futures rose to their highest in two months.

Oil prices were also firm, moving back towards US$100 a barrel, as equity markets fell in Asia following a 1.9 per cent drop on Wall Street.

‘The speed of gold’s rise is very fast but the market is focusing on taking gold towards US$900 in the near term,’ said Mr Tatsuo Kageyama, an analyst at Kanetsu Asset Management in Tokyo.

The strong debut of gold futures on the Shanghai Futures Exchange helped boost spot prices. The June futures contract hit its upper cap of 230.99 yuan, equivalent to around US$990 an ounce. That implies Chinese investors expect a rise in gold prices in dollar terms of some 10 per cent.

Comex gold for June delivery was around US$904 an ounce.

‘Gold is rallying all by itself. It’s not a silver thing, it’s not a platinum thing. Prices had gained on the weaker US dollar and rising oil, but now, new factors are coming in,’ said Mr Jonathan Barratt of Commodity Broking Services in Australia. ‘My feeling is that either there is a big hedge being unwound or it’s rising on inflation fears. If I had to hang my hat on one, I’d say inflation.’

He said rising commodity prices were increasing wage pressure and driving up inflation in countries such as China.

‘The big fear in Asia is that China and India will start to export inflation. There are a lot of relatively inexperienced investors looking to hedge against that and the message has always been: In times of inflation, buy gold. And that will attract a lot of individuals to the new Shanghai contract,’ he said.

Source : Straits Times - 10 Jan 2008

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Foreign funds break inflation, interest rate cycle in Singapore

Foreign funds break inflation, interest rate cycle in Singapore

FOREIGN capital inflows to Singapore are disrupting a self-adjusting relationship between the rising prices of assets such as homes, and borrowing costs, economists say.
Typically, rising asset prices are curtailed by an accompanying rise in interest rates.

As investors borrow more to pay for more expensive homes, for instance, that soaks up available cash in the system, so borrowing costs rise.

United Overseas Bank (UOB) economists said yesterday that overseas investors in Singapore are helping to drive up property and stock prices. But as they bring in funds from abroad, they are effectively adding to the already ample liquidity in the Republic, keeping rates low.

‘Because of this, there are some people in the market who believe that the central bank should target interest rates instead of the foreign exchange rate as the domestic economy rises in importance,’ said UOB treasury research head Jimmy Koh. ‘But we feel that, as it is a small, open economy that is still dependent on exports, Singapore should stay with its current choice of monetary policy.’

This self-correcting mechanism has been in place since 2000, as the benchmark interest rate has generally tracked the private residential price index, said Mr Koh. But the trend has broken down in the past 18 months as housing prices surged while interest rates fell.

While this might suggest that the Monetary Authority of Singapore could do better by controlling interest rates instead of the local currency, Mr Koh noted that Singapore is still an export-based economy. Apart from the sizeable manufacturing sector, the services sector is also export-oriented, he said.

‘Interest rates are not helpful in stimulating economic growth if much of this is determined by external demand,’ said Mr Koh.

For the year ahead, foreign funds are expected to continue to be a key factor in the local economy, said Mr Koh. The credit crunch might curtail global liquidity, but this will be countered partly by expected United States rate cuts.

As well, global investors looking for places to park their money could pick developing economies, which seem to be the bright spot in a year when rich nations are expected to languish.

‘But if the US sinks into a recession, investors may become too risk-averse to put their money in anything apart from US Treasuries,’ said Mr Koh.
Source : Straits Times - 10 Jan 2008

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Source : Straits Times - 10 Jan 2008

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Singapore Mountbatten Road office site draws top bid of $15m

Singapore Mountbatten Road office site draws top bid of $15m

THREE bids were lodged yesterday for a transitional office site in Mountbatten Road released to ease the current tight supply situation in the office market.
The modest result was still a better showing than the single bid placed for a transitional office site put up for tender in Tampines recently.

Mezzo Properties, a small real estate development and construction firm controlled by directors Lim Kim Hong and Lim Huixing, topped the Mountbatten Road tender with a bid of $14.89 million or $69.2 per sq ft (psf) of gross floor area. Superbowl Land came just behind with $14.8 million or $68.7 psf, with Soilbuild Group Holdings well back at $10.93 million or $50.77 psf.

Mezzo’s bid is below the Tampines bid of $80.65 psf.

Knight Frank director of research and consultancy Nicholas Mak said the price was lower mainly because the site does not boast facilities nearby while Tampines is a regional business centre.

Cushman & Wakefield managing director Donald Han said the lower price reflects the short window of six to 12 months in which to get the building rented before a large office supply comes onstream in 2010.

The site has a 15-year lease and a maximum permissible gross floor area of 20,000 sq m or 215,278 sq ft.

The Mezzo directors also participate in the property market via other firms. Last October, they topped a public tender for an industrial site in Sin Ming Lane with a bid of $68.9 million.
Source : Straits Times - 10 Jan 2008

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Last Singapore Sentosa Cove condo plot sold for $1.1b

Last Singapore Sentosa Cove condo plot sold for $1.1b

By Joyce Teo, Property Correspondent
TOP DOLLAR: The Pinnacle Collection can accommodate a 357-unit condo of up to 20 storeys, making it the tallest and largest in the enclave. — PHOTO: SENTOSA COVE

THE last condominium plot in Sentosa Cove has been awarded to Ho Bee Investment and Malaysia-listed IOI Properties for a whopping $1.097 billion.
They put in a land price of $1,822 per sq ft per plot ratio (psf ppr) - slightly above the previous benchmark of $1,799.78 psf.

The bid, at just 14 per cent above the reserve, came in below earlier market expectations as the site, with a gross floor area of 602,360 sq ft, is said to be iconic.

Called The Pinnacle Collection, it can accommodate a 357-unit condo of up to 20 storeys, which would make it the tallest and largest condo in the enclave.

In September - when the 99-year leasehold site was launched for sale - property analysts projected bids of about $2,000 psf. But market sentiment had weakened by the time the tender closed on December 12.

Price was not the only factor at play though as the award was also based on the design concept.

Said CBRE Research executive director Li Hiaw Ho: ‘The breakeven cost is estimated at $2,500 psf, which suggests a future selling price of around $3,000 psf.’ The latest launch in Sentosa Cove, The Marina Collection, was priced at $2,700 psf to $3,000 psf.

Ho Bee and IOI have set up a special-purpose company for the project, with Ho Bee holding 35 per cent and IOI the remainder. The project is IOI’s third foray into Singapore’s property market and Ho Bee’s eighth in the cove.

‘If the sub-prime problem blows over, as it should, they would have landed a good deal,’ said Mr Ku Swee Yong from Savills Singapore.

With this sale, there are just three unsold bungalow plots left at Sentosa Cove.
Source : Straits Times - 10 Jan 2008

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Sunway keen on more projects in S’pore

Sunway keen on more projects in S’pore

Malaysian firm eyes more HDB design-and-build developments

By Tan Hui Yee, Housing Correspondent

THE recently launched condominium-like public housing project in Boon Keng was a first in many respects, wowing home seekers with city views from extended balconies at new benchmark prices.
What is less well-known, however, is the fact that it also marks the first time a foreign company is developing public housing in Singapore.

Sunway Concrete Products, a unit of Malaysian-listed Sunway Holdings, owns a 30 per cent stake in City View @ Boon Keng, the second development to be launched under HDB’s Design, Build and Sell Scheme (DBSS).

The rest is owned by home-grown developer Hoi Hup Realty - which is owned by Straits Construction - and a Straits Construction-linked investment firm, Oriental Worldwide Investments.

Sunway Holdings is one of three listed companies under Malaysia’s giant Sunway Group, whose activities range from construction to property development to quarrying and entertainment.

Often, it is confused with Sunway City - its more illustrious, and also Malaysian- listed, sister company - which boasts among its projects the popular Sunway Lagoon Resort and landed homes in the exclusive Kuala Lumpur enclave Kiara Hills.
Expansion plans

Sunway Holdings has completed the development of a 49ha township in Shah Alam in Selangor state, and is now working on 113ha in Rawang, also in Selangor.

The group managing director of Sunway Group, Datuk Tan Kia Loke, told The Straits Times recently that the group aims to make inroads into the Singapore property market through Sunway Concrete Products, which has supplied pre-cast concrete and other building materials to Singapore’s market for a decade.

Being new in Singapore, it decided to play safe and team up with Hoi Hup for the DBSS project, which gives private developers a free rein over the design, building and pricing of the homes they build - but within public housing guidelines.

Datuk Tan said: ‘Being a new player in properties in Singapore, we do believe in planning our growth in a calculated way…Obviously, the best thing to do is to learn from our big brother.’

The caution has paid off - at 3pm yesterday, the project received almost 2,500 applications for its 714 units.

Although Sunway Holdings’ expertise lies in landed houses, developing such homes may not be on its immediate horizon because land is relatively more expensive to acquire in Singapore.

Still, said Datuk Tan, the firm would not hesitate to look for joint venture partners if it chances on ‘very very prime land’ where it can showcase its strength.

Sunway, he said, was eyeing several government land sale sites for further development.

It wants more of the DBSS action. A total of 2,500 other such homes are being planned for Ang Mo Kio, Bishan, Toa Payoh, Simei and Bedok in the coming months. The tender for a 1.5ha Bishan plot will close on Feb 19.

Asked why Sunway was keen on the Singapore market, Datuk Tan said: ‘Singapore being a small island, the value of property assets over time can only go up.’

He acknowledged, however, that Sunway still had some way to go in establishing its reputation in the Republic.

‘Most Singaporeans, when you talk about Sunway, relate it to Sunway Lagoon. And I think we are conscious of that, and are making a continuous effort to really promote ourselves,’ he said.
SUNWAY Group’s managing director, Datuk Tan Kia Loke, says the group aims to make inroads into Singapore through Sunway Concrete Products, which has been supplying pre-cast concrete and other building materials to Singapore’s market for a decade.

Sunway Holdings, he says, is eyeing several government land sale sites for further development. Having clinched the Boon Keng Design, Build and Sell Scheme project, the company now wants more of such contracts.
Source : Straits Times - 10 Jan 2008

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Plunge in key interest rate may lead to cheaper Singapore home loans

Plunge in key interest rate may lead to cheaper Singapore home loans

Interbank lending rate drops to lowest in three years and is expected to fall further by mid-year

By Alvin Foo

HOMEBUYERS could be in for some cheer in the coming months after a recent plunge in a crucial interest rate that indirectly determines how banks set mortgages.
The three-month Singapore interbank offered rate (Sibor), as it is called, has hit its lowest level since February 2005 and is expected to sink further by the middle of the year.

It is significant as the Sibor is the rate at which banks lend cash to each other and thus influences what consumers pay on loans such as mortgages.

It hit 1.7625 per cent yesterday, down about 0.8 percentage point in a fortnight, and the lowest since the 1.75 per cent level nearly three years ago.

With banks getting cheaper money, it is expected that homebuyers could benefit in turn from cheaper mortgages, although there is usually a lag between Sibor and consumer loan rate movements.

Citigroup economist Chua Hak Bin said: ‘Mortgage rates could head lower in two months.’

But a Sibor fall is bad news for savers as fixed deposit rates could drop too.

Economists say the Sibor’s sharp dip is due to recent interest rate cuts in the United States - with more likely to come later this month, huge capital inflows into Singapore and poor stock market sentiment, which have prompted investors to leave more money in the bank.

CIMB-GK economist Song Seng Wun said: ‘The Sibor’s plunge corresponds with the recent sharp decline in US interest rates and the expectation of more cuts.

‘People have started 2008 with plenty of uncertainty, and are holding on to more cash and being more risk-averse.’

OCBC economist Selena Ling added: ‘It’s due to foreign funds coming in, seeking refuge from the weakening US dollar, and the recent plunges in the equity market.’

The US Federal Reserve has cut key interest rates from 5.25 per cent to 4.25 per cent in recent months.

Market experts predict a further 50-basis point cut later this month as part of moves to avert a possible recession.

Economists expect the Sibor to remain soft, due to the likelihood of further rate cuts and the cautious equity market sentiment.

Dr Chua said: ‘We expect the Sibor to fall by a further 30 to 50 basis points by mid-year, especially if the Fed cuts rates by 75 basis points by the end of the second quarter.’

While home owners welcome a Sibor fall, banks dread it.

It affects their net interest margins because most of their Singdollar corporate and small business loans are linked to the Sibor.

A Deutsche Bank analyst report noted: ‘This plunge is of concern, as we estimate that a 25 basis point fall in the Sibor will eventually lead to a fall in earnings per share of 4 per cent for DBS Group Holdings, 2 per cent for United Overseas Bank and 1 per cent for OCBC Bank.’

And savers will get belted too. Low interest rates combined with the high inflation now building up in Singapore spell ‘negative real interest rates’ - the interest earned on savings will not be able to offset the rise in prices.

Mr Song said: ‘It’s a sign for people not to keep money in the bank, as savers lose out.

‘It’s a good period to borrow, as there is more incentive for people to take money out rather than put it in.’

Thus, Dr Chua advocates that ’some diversification away might be prudent’.

He suggested alternative instruments such as real estate investment trusts, utility stocks and foreign currency fixed deposits, which offer higher rates, to hedge against inflation risk.

Source : Straits Times - 10 Jan 2008

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Singapore Prima starts making payouts

Singapore Prima starts making payouts

15 of 186 medical claims have been reimbursed; all 23 franchisees get initial payment

By Diana Othman
RE-OPENED: Ang Mo Kio outlet manager Jordan Cheang, 35, attending to a customer on Jan 1. — ST FILE PHOTO

PRIMADELI has begun making payouts to customers and franchisees hit by the salmonella outbreak late last year.
The Straits Times understands that the company has made good on 15 of the 186 claims for medical bills; another 23 have been approved, 60 more are being processed and the rest are being followed up on.

Just over 200 people were hit last November in Singapore’s biggest recent mass food poisoning outbreak, and 15 were hospitalised.

Investigations traced the bug to PrimaDeli’s chocolate cream cakes. Salmonella was found in the bakery chain’s ingredients such as its hazelnut paste and chocolate cream, its cake samples and 14 food handlers.

After 27 days of clean-up operations and checks by the Agri-Food and Veterinary Authority, PrimaDeli was back in business on Jan 1.

Ms Pansy Wong, the deputy general manager of Prima Food, told The Straits Times yesterday that as payouts were still being made, the dollar amount was not available, although she reckoned it could run into the millions.

Back in business
November: Health Ministry first notified of a food poisoning case. In the end, some 200 people were affected in the mass food poisoning outbreak, and 15 were hospitalised.
December: All 39 PrimaDeli outlets were closed from Dec 5. Clean-up operations and checks by the AVA were carried out.
Jan 1: PrimaDeli outlets opened for business again.

She confirmed that Prima would compensate victims for their hospital and medical bills and cakes, and that, to make a claim, they must fill out a form and send it back with supporting documents, such as receipts. Prima would forward these to its insurer.

Prima has given each of its 23 franchisees an initial payout amounting to seven days’ loss of profit during the outlets’ month-long closure, to ‘defray some of the expenses first, such as rental of shop space and staff salaries’, said Ms Wong.

In the next two weeks, Prima will prepare compensation for the remaining days that the shops were closed.

Ms Wong gave the assurance that franchisees would be paid in full soon, but added that payouts would vary among franchisees, according to their shop sales.

Two franchise owners The Straits Times contacted were satisfied with the compensation packages from Prima and described them as ‘fair’.

Among the four affected customers who spoke to this newspaper, none has so far received compensation. They are either waiting for their claims to be approved or have yet to submit their claims.

Three complained that they ought to be reimbursed for more than just their medical bills and cakes.

Pharmacy assistant Anizah Yusof, 19, whose family of 22 fell sick, is still trying to put a dollar amount to the distress her family was put through.

‘Our suffering was really traumatic. We could not sleep and some relatives had to take unpaid leave.’

Ms Wong said the company would leave it to its insurer to assess suitable compensation for such claims.

Source : Straits Times - 10 Jan 2008

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9 tenants, developer in legal dispute over Square2 mall -Singapore

9 tenants, developer in legal dispute over Square2 mall -Singapore

Retailers sue over empty pledges; Novena Point counter-sues for unpaid rent

By Selina Lum
WHERE ARE THE SHOPPERS?: The nine tenants claim Novena Point promised to spend $6 million on advertising and promotion, but this was not done. — ST FILE PHOTO

SLUGGISH business in the shopping mall sitting above the Novena MRT station has led to a legal tussle between a group of disgruntled tenants and the developer.
The nine tenants of Square2 have sued the developer for misrepresentation, claiming that they were made several promises, such as the scale of advertising and promotion campaigns, which have remained unfulfilled.

Novena Point, which is under the Far East Organization umbrella, has denied making misrepresentations and is counter-suing the tenants for rent and other charges.

The mall, conceptualised as a Korean-themed one, has 150,000 sq ft of retail space on five levels. It has more than 200 retail tenants.

The nine tenants, including a gift shop, a hair salon, a fashion retailer and an eatery, opened for business in the first two months of last year.

Depending on shop size, they pay rents ranging from about $1,900 to over $12,000 a month.

Last month, the nine, represented by lawyer Leonard Loo, filed a lawsuit in the Subordinate Courts against Novena Point.

The claim did not specify the quantum of damages, as the plaintiffs are asking the court to assess the amount they deserve if they win the case.

Alternatively, the plaintiffs are asking that their tenancy agreements be rescinded and for the rents they have paid to be refunded. In their statement of claim, they say they took up their shop spaces based on oral representations made to them by the developer’s representatives and its brochures.

The promises, the tenants claim, include:
That there would be specific shopping zones such as a ‘digital world’ selling electronic gadgets in the basement and Korean-themed shops on Level 3, where shop staff would wear traditional Korean costumes;

That Korean artistes like K-pop star Rain would be brought in monthly to promote the mall;

That $6 million would be spent on advertising and promotion.
But the defendant failed to deliver on these, the tenants said.

The shops have not been zoned, but are scattered, and no ‘digital world’ has been created. They added that Korean artistes did not grace the mall every month, and that the defendant had not spent $6 million on promotions.

Some tenants claimed they have been locked out of their shops and that their rent cheques have been rejected without reason.

The defendant, represented by Allen & Gledhill, is denying these claims. In its defence filed last week, it said that while it had approached electronics retailers to take up shop units, it never set out to pitch Square2 as an IT mall like Sim Lim Square or Funan.

It added that while Level 3 has a Korean theme, it never said operators would wear Korean costumes. Korean artistes have come to the mall, but it was never promised that such appearances would happen every month.

As for Rain, it said that all that was said was that it would try to bring him in.

The developer also claimed to have put in considerable effort into promoting the mall, but never committed to spending $6 million on this. It has so far spent $2.9 million.

It asserted that six of the tenants were in rental arrears despite reminders, so their leases were terminated. Their cheques were returned because partial payments were not accepted.

It is contending that the tenants each owe between $1,800 and $51,000 in rent.

Source : Straits Times - 10 Jan 2008

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Growth in developing countries likely to soften US slowdow

Growth in developing countries likely to soften US slowdow

By Rachel Kelly
SINGAPORE: Resilience in developing economy is helping to cushion the current slowdown in the United States, according to the World Bank in its latest Global Economic Prospects Report.

Real GDP growth for developing countries is forecast at 7.1 percent this year, compared to the 2.2 percent for high-income countries.

Global economic growth is expected to be moderate this year – the World Bank is looking at a 3.3 percent expansion overall, down from 3.6 percent in 2007.

However, it said developing countries would outperform their more developed counterparts due to booming numbers from China and India.

And the Singapore’s economy will not lag far behind.

Hans Timmer, Manager, The World Bank, said: “The outlook for Singapore is still very strong – not as strong as 2007 where you had 7.5 percent growth. We expect growth to come down just below 7 percent, but that’s still very strong.

“Singapore benefits from its location; it benefits very much from the extraordinary dynamics in Asia itself and it also benefits from its policy to improve production potential within the country itself.”

According to the World Bank, Singapore has a role to play in helping developing economies adopt and absorb new technologies, which will be key for better global stability in 2008.

Andrew Burns, Senior Economist, The World Bank, said: “Well, I think that Singapore has a very important role. One of the things that we emphasis in the report is that much of technology diffusion and the technological progress that we observe in the developing countries is due to increased globalisation, increased trade and exposure to the technology of high-income countries like Singapore.

“As a result, as Singapore continues to expand and interact with developing countries, they’re going to have a very important role in helping them along.”

A weaker US dollar, the prospect of a recession in the US, and rising financial market volatility are seen as downside risks this year. But the World Bank said East Asian economies have so far held their own.

Mr Timmer said: “At least till now, half a year after the turmoil in the financial markets broke out, East Asian countries have still been very resilient. The continued strong performance signals that the impact is relatively limited.

“East Asia is mitigating a slowdown in the US by providing export opportunities. Exports are growing at a rate of more than 20 percent in the US and that impact is very positive.

“What we are worried about is not so much that growth is slow in East Asia but that growth is going too fast, which could create bubbles.”

The World Bank is expecting to see a 9.7 percent expansion in GDP this year for East Asia and the Pacific as a whole.

Source : Channel NewsAsia - 10 Jan 2008

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