Residences at 338A - Singapore - District 09

Residences at 338A - Singapore - District 09

338A River Valley Road, District 9 (Entrance located at Killiney Road)

If style is a vital part of our lives, then it is equally an important part of our home. Distinctively modern, Residences at 338A is a place for those who love living in the city yet enjoy a peaceful environment that they can call home. Rising 10 storeys high, this exclusive freehold development comprises 46 units of 3-bedroom apartments that stand out for their enduring functionalism infused with contemporary essence.

The proximity to Orchard and Somerset MRT station and major road networks is destined
to set new standards in modern living. Providing you with the ultimate lifestyle, the accessibility of cinemas, famous shopping centres, supermarkets, good schools and restaurants offers convenience combined with the privacy and benefits one desires.

• Exclusive 46-unit 3-bedroom FREEHOLD Condominium

• 5-minutes walk to Somerset MRT station and Orchard Road

• Built-in area: 1119 sq. ft. onwards

• Facilities: Swimming pool, BBQ area, gym/multi-purpose hall, reflexology path, children’s play area & pool, water feature, reflecting pool and walking path

• Foreigners eligible

FLOOR PLANS
Type B (1313 sqft) Type D (1119 sqft)
Type C (1163 sqft)

Developer : Springstar Properties Pte Ltd

Singapore Real Estate - Buy, Sell, Rent,invest, Singapore Property

Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse & land right here.

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com ( email me )

Atrium Residences - Singapore - District 14

Atrium Residences - Singapore - District 14

The style of contempopary living, the excitement of the city and the convenience of the surburbs. It’s finally here at Atrium Residences. Centered around private surrounds, you will immediately sense you have left the ordinary world behind. Outside, a vibrant community in which everything is only steps from your front door awaits. Whether it’s the excellent amenities or convenience within close proximity, the best of everything is all around you. For those who desire an urban lifestyle beyond the realms of the everyday, Atrium Residences lets you live you want.

Floor Plans
Type A1 (2 bdrm - 807 sqft) Type B5B1 (3 bdrm - 1141 sqft)
Type A1P (2 bdrm - 1604 sqft) Type B5B2 (3 bdrm - 1109 sqft)
Type A2 (2 bdrm - 818 sqft) Type B5G (3 bdrm - 1184 sqft)
Type A2P (2 bdrm - 1625 sqft) Type B5P (3 bdrm - 2034 sqft)
Type B1 (3 bdrm - 1259 sqft) Type B6 (3 bdrm - 1227 sqft)
Type B1A (3 bdrm - 1227 sqft) Type B6A (3 bdrm - 1216 sqft)
Type B1P (3 bdrm - 2271 sqft) Type B6B (3 bdrm - 1227 sqft)
Type B2 (3 bdrm - 1302 sqft) Type B6P (3 bdrm - 2228 sqft)
Type B2A (3 bdrm - 1259 sqft) Type B7 (3bdrm - 1044 sqft)
Type B2B (3 bdrm - 1292 sqft) Type B7P (3 bdrm - 2077 sqft)
Type B2P (3 bdrm - 2303 sqft) Type B8 (3 bdrm - 1023 sqft)
Type B3 (3 bdrm - 1055 sqft) Type B8A (3 bdrm - 1001 sqft)
Type B3A (3 bdrm - 1012 sqft) Type B8P (3 bdrm - 1959 sqft)
Type B3B (3 bdrm - 1012 sqft) Type B9P (3 bdrm - 1851 sqft)
Type B3C (3 bdrm - 1012 sqft) Type B10P (3 bdrm - 2228 sqft)
Type B3G (3 bdrm - 1216 sqft) Type B11 (3 bdrm - 1001 sqft)
Type B3P (3 bdrm - 1948 sqft) Type B11G (3 bdrm - 1044 sqft)
Type B4 (3 bdrm - 1023 sqft) Type B11P (3 bdrm - 1991 sqft)
Type B4A (3 bdrm - 1023 sqft) Type B12 (3 bdrm - 947 sqft)
Type B4B (3 bdrm - 1055 sqft) Type B12P(3 bdrm - 1819 sqft)
Type B4G (3 bdrm - 1814 sqft) Type B13(3 bdrm - 969 sqft)
Type B4P (3 bdrm - 1959 sqft) Type B13A (3 bdrm - 969 sqft)
Type B5 (3 bdrm - 1044 sqft) Type B13G (3 bdrm - 1055 sqft)
Type B5A (3 bdrm - 1066 sqft) Type B13P (2 bdrm - 1830 sqft)

Developer : The Novelty Group

Singapore Real Estate - Buy, Sell, Rent,invest, Singapore Property

Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse & land right here.

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com ( email me )

Straits Trading launches 28-storey office tower - Singapore

Straits Trading launches 28-storey office tower - Singapore

By CHEW XIANG

A NEW 28-storey Grade A office tower at 9 Battery Road has been launched by Straits Trading Company through its subsidiary Straits Developments.
The Straits Trading Building, which is intended to be completed by the third quarter of next year, will have about 160,000 square feet of lettable office space. It replaces the old Straits Trading Building, which was built in 1972 on the same site and redeveloped into the present tower in 2006 with a slightly higher plot ratio.

Calvin Yeo, director of commercial leasing at Colliers International, the marketing agent, said it was asking for about $18 per square foot in rent. Colliers has been marketing the building to multinational corporations especially those in the financial sector, business services and professional services. Mr Yeo said pre-launch interest has been strong.

‘Though large financial institutions represent the bulk of recent growth in demand for office space in the current market, we are also observing strong demand for premium office space from multinational companies who are mid-sized users,’ he said.

The new building features two double-storey open air gardens, and roughly 8,300 sq ft of office space per floor for a maximum of two tenants.

The designer, Team Design Architects, is studying plans to build solar panels on the roof, as well as solar-powered air conditioning for the top floors, said director Loke Kwong Yoon.

The green features will add less than 5 per cent to the development cost, he added.

The construction cost is now put at $60 million, according to Straits Trading Company president and chief executive Norman Ip.

Straits Trading Company, which had its corporate headquarters in the old building, is likely to return to the new one and take up the top floors.
Source : Business Times - 23 Jan 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Record 20 bids for Singapore Jalan Sultan site

Record 20 bids for Singapore Jalan Sultan site

$14.8m is top offer for parcel with 17 shophouses
By ARTHUR SIM
A RECORD 20 bids have been received in the Urban Redevelopment Authority (URA) public tender for a site including 17 two-storey conservation shophouses at Jalan Sultan.
The URA said that this was the highest number of bids it has received for a public tender in at least 10 years.

The 15,200 sq ft Reserve List site was put up for public tender after an unnamed bidder last November committed to place a minimum bid of $7.8 million.

The highest bid received by the URA - $14.8 million - exceeds this by about 90 per cent.

The $14.8 million bid was from Chiu Teng Estates Pte Ltd, which is in the construction, development and property management business. The price works out to $973.63 psf of site area, or about $870,000 per shophouse.

The second highest bid, $13.61 million, was from Brilliant-1 Investments Pte Ltd, followed by KMC Holdings Pte Ltd’s bid of $12.8 million.

Colliers International executive director of investment sales, Ho Eng Joo, said that as the top three bids varied only by about $1 million, it is fair to assume that the prices were ‘fair market value’. Mr Ho had himself earlier estimated the site could fetch a top bid of around $14 million.

Estimating that the potential developer will have to pump in another $500,000 in renovation and restoration costs, the cost for each shophouse unit could rise to $1.3 million.

Based on this, Mr Ho expects that the potential developer will possibly seek a monthly rental of between $5,000 and $7,000 per shophouse unit.

Separately, the URA said that it will not award the tender for a transitional office site at Aljunied Road/Geylang East Avenue 1 because the only bid it received, Mezzo Development’s $7.8 million (or a unit land price of $38.35 per square foot per plot ratio), was too low.

Three transitional office sites have been awarded so far. However, demand for these sites has been on the wane, with some property consultants saying that the sites may no longer be relevant.

URA said: ‘The government is evaluating the market response to the recent tender and the demand for transitional office sites. URA will continue to release more sites if there is demand for such short-term office space.’

Source : Business Times - 23 Jan 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore HDB may offer 6,000 flats in H1

Singapore HDB may offer 6,000 flats in H1
SOME 6,000 housing board flats are expected to be offered for sale in the first half of this year, Parliament was told yesterday.
Minister of State for National Development Grace Fu said this matches the sales pace seen in the same period last year.

For the whole of 2007, HDB sales programme offered 13,000 flats - more than double the 5,700 flats sold in 2006.

Ms Fu was responding to questions about HDB’s planning parameters and had cited those figures to illustrate the flexibility in the government’s building plans.

For instance, if the HDB sees high subscription rates in a certain area, it would also increase the supply of flats in that area.

Ms Fu also stressed that it is ‘difficult to predict with precision what the actual demand is in a three-year time frame’. For this reason, the build-to-order (BTO) scheme helps prevent an excess supply of flats. Under BTO, construction will proceed only if booking for a sizeable number of the flats has been confirmed.

Yesterday, Ms Fu also urged first-time flat buyers to check out information on flats supply in different locations, and to consider factors like the chances of success in the balloting exercise, the waiting time, and their budget before deciding on a location.
Source : Business Times - 23 Jan 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore GST hike adds $990m to govt revenue so far

Singapore GST hike adds $990m to govt revenue so far

$1.17b budgeted to help S’poreans adjust to higher GST: Tharman
By OH BOON PING
THE government collected an additional $990 million in tax revenue last year due to the higher Goods and Services Tax (GST) that kicked in on July 1, 2007.
Mr Tharman: There are needy Singaporeans who did not sign up to receive the GST credits or senior citizens bonus, but efforts had been made to contact them
Yesterday, Finance Minister Tharman Shanmugaratnam told parliament that about $540 million of the revenue was domestic, while the rest came from foreign consumers.

He was responding to questions about the added tax revenue from a 2 percentage point hike in GST levied from last July.

Of the sum, $630 million were subsequently paid out as GST credits over the same period, ‘including the bonus credits that were given to senior citizens’.

‘Overall, besides the GST credits, the government had budgeted to hand out $1.17 billion in fiscal 2007 to assist Singaporeans to adjust to the GST increase,’ said Mr Tharman.

He acknowledged that there were needy Singaporeans who did not sign up to receive the GST credits or senior citizens bonus, but added that efforts had been made to contact them.

‘We had repeated publicity as well as outreach efforts on the ground to reach out to these individuals,’ like posters in lift lobbies and customised flyers sent to those households, the minister explained.

Yesterday, the house also passed an amendment bill to the Workmen’s Compensation Act (WCA).

Under the amended bill, coverage under the WCA has now been expanded to include non-manual workers earning more than $1,600 a month, besides manual workers and non-manual workers earning $1,600 or less a month.

Also, the compensation limits have been raised due to wage increases since 1995 when the previous limits were set.

‘With this change, the minimum compensation for death and total permanent incapacity will be increased to $47,000 and $60,000 respectively,’ said Gan Kim Yong, Minister of State (Education and Manpower).

‘The maximum compensation will also be raised to $140,000 and $180,000 respectively.’

The other changes include streamlining the compensation process, flexibility in paying and distributing compensation.

To ensure that the WCA is effective, Mr Gan said penalties against errant employers and employees would also be raised accordingly.

‘For example, an employer who illegally deducts his employee’s salary to defray the cost of work injury compensation insurance may be fined up to $5,000 instead of $2,000, while the maximum jail term has been kept at six months.’

The Manpower Ministry said it would reach out to employees on their rights under the Act, and raise worker awareness of the available avenues for compensation.
Source : Business Times - 23 Jan 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Investors abroad don’t feel immune to US woes now - FRANKFURT

Investors abroad don’t feel immune to US woes now - FRANKFURT

They worry how bad a US recession could get, and how badly it would hit the world
(FRANKFURT) Since late last summer, the US economy has demonstrated an enduring power to surprise. And not for the better.

Mr Bernanke: Investors are not persuaded by his recession-dismissing tone
Investors worldwide are pondering the prospects for a recession in the United States, their latest and furthest-reaching preoccupation resulting from a succession of bad news that the US economy, the world’s largest, has delivered since the onset of global financial turmoil.

When credit markets seized up, the product of mounting losses linked to the American mortgage market, stocks dived, then recovered, as investors factored higher borrowing costs into the outlook for corporate earnings. The changes, some reasoned, were an imaginable step away from the easy money of recent years.

But as large banks in the US disclosed losses in November, equity markets plunged again to account for a lending system that, it turned out, needed to purge losses and be recapitalised.

Stocks recovered somewhat in December. Now the focus among overseas investors has jumped to recession, and a conviction that the US cannot avoid it has became embedded in many market watchers’ and investors’ psychology.

‘We have moved from a phase where an assessment was made on the credit situation, which is improving, onto the macroeconomic news flow,’ said Jacques Cailloux, chief euro-area economist at the Royal Bank of Scotland in London. ‘And if you look at the US, the data has not been very encouraging.’

On Monday, investors ignored the assurances last week from Federal Reserve chairman Ben Bernanke that the US might avoid recession; instead, they have begun to ask how bad it could become - and how bad that would make it for the rest of the world.

‘Ten days ago, only a very few people thought this would be a bad one,’ said Erik Nielsen, chief European economist at Goldman Sachs in London. ‘But now you have people debating just that.’

The latest panicky discussion - which ushered Asian and European markets on Monday and yesterday to some of their steepest losses since September 2001 - revolves around whether the normally resilient US economy will suffer a sharp, protracted downturn or a brief, shallow slowing if consumers regain their footing after the long period of free spending by borrowing against the value of their homes.

Emergency proposals with broad support from the Republican White House and many congressional Democrats to stimulate the economy, coupled with further signs that the Fed will again cut borrowing costs to cushion the blow, suggest agreement in the US that the economic downturn is a serious threat and must be addressed immediately.

That sense of urgency is also fuelling further debate among policymakers in Europe and Asia about whether their economies are truly as insulated from US woes as many would like to believe.

Investors in Asia, conditioned by the roaring economies of emerging markets like China and India, had resisted factoring the chances of a recession in the US into equity prices, stock strategists said - a stance that helped ward off losses in recent months. But now that expectation of a recession is wider, the adjustment in the markets has been jarring - a point evident in Monday’s stock losses.

The signals from the US have been strong enough that the financial markets are betting that Europe will take a much bigger hit than previously expected.

This conviction is strong enough that investors are behaving, based on signals from the bond market, as if they expect the European Central Bank (ECB) to ease interest rates later this year - even though the bank has given no such signal.

‘Overall, the market is sending a message to the ECB that the outlook is very different from what the bank has said,’ Mr Cailloux said. ‘The markets are pre-empting the ECB.’

Instead, the European bank has threatened to raise interest rates - rather than lower them, as is happening in the US - if labour unions demand compensation for food and energy price increases in new wage settlements, a move that could be expected to increase inflation, which is already 3 per cent in the euro zone.

Yet even the president of the European bank, Jean-Claude Trichet - who maintains that the euro area can continue to grow solidly despite deteriorating conditions in the US - acknowledged recently that the slowing in the US must be watched carefully.

In trying to estimate how much American consumers might curb their spending, slowing the economy further, some analysts are beginning to make comparisons to Japan’s long stagnation of the 1990s.

This view holds that consumers have overdone things to such a degree on cheap credit and loans from ever more expensive homes, that the adjustment could drag out more than a few quarters. At the least, this thinking goes, corporate earnings could be tame even after the economy stops contracting, slowing any recovery. — NYT

Source : Business Times - 23 Jan 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore Robinson: big decision for shareholders

Singapore Robinson: big decision for shareholders

By MICHELLE QUAH
SHAREHOLDERS of Robinson & Co are now, quite possibly, the envy of the Singapore stock market. But with great power comes great responsibility. Their burden - in terms of deciding the fate of the homegrown retailer - is also great.
On a day when global bourses tumbled - and the Singapore Straits Times Index (STI) dropped 50 points to close at 2,866.55 - Robinson’s stock gained $1.76, or 39.5 per cent, to close at $6.22. It could climb further to $6.25, the price at which the Al-Futtaim Group has offered to take over the entire company.

Bets are also on Lippo Group - Robinson’s major shareholder - making a counter offer to ward off Al-Futtaim’s takeover attempt. This will only mean further upside for Robinson’s stock and larger gains for shareholders.

So, Robinson shareholders are in the enviable position of being able to reap rewards, whatever happens.

Those who believe Al-Futtaim can offer Robinson a better future, or who simply wish to exit their investment, stand to gain on the difference between Al-Futtaim’s offer price and the price at which they bought their stake (assuming the latter is lower). For these shareholders, a counter offer - or, better still, a bidding war - would mean even more handsome gains. Those who believe Lippo offers better prospects for Robinson and wish to hold on to their stake will stand to benefit from their anticipated future growth of the retailer. Those who don’t profit from Al-Futtaim’s offer aren’t any worse off, either way.

Shareholders will have to decide, based on their motivations. Those wishing only to exit their investment at the highest possible price, thereby reaping the biggest monetary gains, should wait to see if Lippo will make a counter offer for Robinson - and if Al-Futtaim will also counter that, and so on. They should then sell to the highest bidder.

The choice isn’t so simple for those driven more by concerns as to what is best for the company’s future.

Robinson is unique in the way it tugs at a sentimental spot in the hearts of some of its shareholders. Tracing its roots in Singapore back to 1858, its history is considered synonymous with Singapore’s - and there are those who are convinced that its legacy and brand should be preserved.

One such shareholder is Tecity, which has steadfastly refused to sell its stake in the retailer to non-Singaporeans in its determination to keep the Robinson brand name in Singapore. Tecity is run by Chew Gek Khim, granddaughter of Robinson’s first local chairman Tan Chin Tuan.

But Tecity recently relented and gave an irrevocable undertaking to sell its stake in Robinson to Al-Futtaim. Ms Chew said she believed the Al-Futtaim Group would ‘understand and cherish’ the Robinson brand, whereas Lippo had ‘a different philosophy’.

Shareholders concerned about preserving the Robinson brand should consider if her remarks have any merit, or whether Lippo is their best option. Lippo’s track record in the business arena is impressive. Founded by Mochtar Riady, the group is now a major Indonesian conglomerate with a massive asset base and substantial interests in banking, finance and other enterprises around the world.

But some of Lippo’s recent moves could be cause for concern for some Robinson shareholders. The group has set up a chain of department stores in China - to tap the country’s fast-growing retail segment - called ‘Robbinz’.

The comparison to the Robinson brand in Singapore is inevitable; and some might argue that such a move could damage the integrity of the brand - leading some shareholders to question Lippo’s determination in preserving the Robinson brand in Singapore. As for Al-Futtaim, it, too, has an impressive track record. Established in the 1930s, the group now operates over 40 companies from its headquarters in Dubai, in the UAE - and is known as one of the leading business groups, and one of the largest retailers, in the lower Gulf region.

It represents global brands such as IKEA, Toys R Us, Panasonic, Seiko, Raymond Weil, Hitachi, Toyota, Lexus, Honda, Volvo, Chrysler, Jeep and Dodge. It also runs nine Marks & Spencer stores - coincidentally, also a brand in the Robinson’s stable in Singapore.

Its approach to management of Robinson, however, is still an untested factor in the equation. But shareholders might want to weigh Al-Futtaim’s proposed plans for Robinson. The Al-Futtaim Group says it is ’supportive of the strategy adopted by the current management team of Robinson’. And it has added that it is ‘cognizant that Robinson has been, and intends to continue, expanding its retail footage in Singapore and Malaysia and securing additional brands’ and that it ‘intends to accelerate this pace of investment’ if its takeover is successful.

Shareholders who hold dear Robinson’s 150-year legacy must think long and hard about their investment. Much will depend on Lippo’s next move - and its response, if any, to Tecity’s suggestion of its approach to the Robinson brand.

Source : Business Times - 23 Jan 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

S’pore First Reit beats Q4 forecast with $4.8m distributable income

S’pore First Reit beats Q4 forecast with $4.8m distributable income

By ARTHUR SIM
FIRST Reit, Singapore’s first healthcare real estate investment trust (Reit), has reported distributable income of $4.8 million and a distribution per unit (DPU) of 1.76 cents for the fourth quarter ended Dec 31, 2007.
This exceeds its forecasts by 9.1 and 9.3 per cent respectively.

On a full-year basis, distributable income was $18.3 million and DPU was 6.73 cents, exceeding its forecasts by 5.6 and 5.7 per cent respectively.

Based on the closing price of 75 cents per unit on Jan 18, the full-year DPU represented a distribution yield of 9 per cent, said First Reit.

Ronnie Tan, chief executive of First Reit’s manager Bowsprit Capital Corporation, said: ‘We believe that our yield of 9 per cent remains one of the highest among the Singapore Reits (S-Reits) and this, in our opinion, is an attractive proposition.’

For the quarter, net property income was $7.2 million, 18.6 per cent above its forecast.

First Reit, which is sponsored by Lippo Karawaci, has assets in Indonesia and Singapore. A recent independent valuation put its asset value at $325.6 million, representing an increase of $17.6 million over the book value as at Sept 30, 2007.

Dr Tan said: ‘We will continue to work with our sponsor, Lippo Karawaci, in Indonesia. In addition, China will also remain a key focus in our acquisition pipeline as we believe that the healthcare needs in the country will continue to grow exponentially as income rises.’

Of the four memoranda of understanding for Chinese asset acquisitions it previously announced, Dr Tan said that it expects to conclude at least one acquisition in the second quarter of this year.

Noting that regulations have opened the way for possible consolidation in the S-Reit market, Dr Tan also said: ‘We are all for consolidation.’

The target portfolio size for First Reit is $400 million in 2008 and $500 million in 2009.

In terms of asset enhancement, Dr Tan said that it had recently submitted for regulatory approval plans for the redevelopment of its Adam Road Hospital, which has a 1.4 plot ratio. He added that First Reit could also sell units of the redeveloped hospital.

First Reit closed trading yesterday at 72 cents per unit, down two cents.

Source : Business Times - 23 Jan 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

S’pore DBS analysts see US slowdown, not recession

S’pore DBS analysts see US slowdown, not recession

By MATTHEW PHAN

WITH the markets falling all around them, DBS analysts are standing out with a contrarian and notably optimistic view on where macroeconomic variables are headed.
The bank’s head of group research, Sanjit Maitra, said at DBS’s annual outlook seminar for corporate and private clients yesterday that he believes that US domestic consumption is not headed for negative territory, although it will slow. He believes that the worst is over, with the turning point not in the last month but actually as far back as the first quarter of last year.

Mr Maitra compared the current US slowdown to the downturn in late 2001. At the time, monthly job losses reached nearly 300,000, with some 2.6 million people losing their jobs over the period, yet growth in consumption never fell below 2 per cent.

‘Now we’re talking about job growth being weak, with losses picking back up to around 100,000 per month. But unless another external dynamic comes into play, it is hard to conclude there will be negative consumption growth,’ he said.

And from looking at historical US GDP growth, the slowdown - which Mr Maitra said was ‘three years old’ - was sharpest in 1Q07, when year-on-year growth slowed to about 1.5 per cent.

Meanwhile, Asian domestic demand has grown to the point where it will represent 93 per cent of US growth in 2008. That means that this year, for every dollar of American consumption Asians will consume about 93 cents - a proportion that has steadily increased from less than 50 cents in the late 1980s.

By 2010, Asia will contribute at least as much as, if not more than, the US to world consumption, Mr Maitra said.

He also reminded the audience that China’s largest trading partner is the European Union - at an average 24.6 per cent of total exports for the last three months - and not the United States, which took in 23.6 per cent of Chinese exports. Another 19 per cent go to Asia ex-Japan and India.

As such, it is actually the US that relies more on foreign demand. Some 19.5 per cent of America’s GDP growth came from a rise in net exports in 2006-2007, compared to 18.5 per cent for China, said Mr Maitra.

In sum, DBS expects US growth for 2008 to slow to 2.4 per cent, but not slip into recession. The euro zone will see steady growth at 2.25 per cent, China’s growth will slow to 10 per cent, and the rest of Asia ex-Japan will stay the pace at 6.25 per cent.

But this does not mean that regional equity markets will bounce back within the week, said Timothy Wong, head of regional equities at DBS Group Research.

Asian markets are still very much driven by liquidity from the US and Europe, and high-risk aversion has led these foreign investors to sell down - in the face of uncertainty, they retreat from what they perceive as risky emerging markets back to their home markets, he said.

Source : Business Times - 23 Jan 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

How Amoebas in EDB shape Singapore future

How Amoebas in EDB shape Singapore future

Teams learn to dream, experiment and seek out opportunities
By RONNIE LIM
Dreaming up opportunities for long-term growth - this is what the so-called ‘Amoeba’ teams within the Economic Development Board (EDB) do, as officers across departments form small task forces to experiment on projects for 90 days.
‘This is outside their normal duties. In some ways, it’s like 3M, where staff can spend 20 per cent of their time in areas of interest they are passionate about. So we want to foster this culture and create the systems to allow this,’ says Beh Swan Gin, EDB’s assistant MD for planning & policy. Singapore’s economics landscape ten years from now could be influenced by some of these experiments, said Dr Beh, who gave insights into how EDB grapples with the present and future.

EDB’s Amoeba team concept - named by chairman Lim Siong Guan after microscopic life forms which are ultimate shape-shifters - was started just last year.

Already, some of the teams have come up with a few possible new growth areas, Dr Beh says, while refusing to go into detail. ‘So that’s the dreaming part of it,’ he says of his job.

The EDB as a whole has to look at three time frames. One is the short term - the next one year. ‘We always have to think about the projects we are working on, and negotiating. . .what are the challenges we face, like rising housing costs. We work closely with investors to try to find solutions,’ says Dr Beh.

Next come the mid-term issues. ‘Take the example of the chemicals industry. What are some of the things we need to look out for and pursue, so that in 3-5 years’ time some of these may be in place? The recent Shell and ExxonMobil cracker investments are the fruits of work started many years ago. We have to think what next to do so this industry can grow.’

Thirdly, the long-term: 5-10 years. ‘This is where we gaze out and say what are the things we need to do today to pre-position ourselves . . . For example, five years ago, we started to look at environmental engineering as an opportunity, and today we are seeing the early results.’

‘So EDB as a whole has to think of all this, and my focus will be more the 5 to 10-year frame,’ Dr Beh says.

His portfolio, he says, covers three aspects. One is to predict what the operating environment could look like 5-10 years out, what the competitors are doing, and whether this means threats or opportunities.

‘The second aspect will be to look at some of our policies with regard to human capital, to physical infrastructure, and financial/tax incentives we need to put in place to pre-position ourselves or to contend with the threat,’ he says.

‘Here, EDB is more an advocate.’ It apprises the various agencies and ministries on what the industry needs. ‘It may involve getting universities to introduce new courses, or JTC to create projects like Biopolis and Jurong Island.’

The third aspect is ‘more organisational planning matters like performance measurements, and organisational excellence issues - focusing on EDB’s ability to carry out what we want to execute’, Dr Beh says.

His policy & planning group has 120 staff to help in all this, including carrying out more mundane, nevertheless important, matters like collating monthly manufacturing statistics and annual industry output data.

Dr Beh stressed that economic planning here is also a ‘whole-of-government approach’ as his group works with other agencies on issues such as manpower planning, training and what job skills will be required in five years’ time.

‘At this time, however, demand for skilled labour exceeds supply. We are fortunate because we have managed to attract many international talents. So long as we can maintain a core of Singaporeans, having a diversity of foreign talents means benefits will outweigh cost . . . but we want to have a fine balance,’ he stressed.

So what will Singapore’s economic landscape look like in 10 years? ‘If there’s one thing we’ve learnt - and Koh Boon Hwee (deputy chairman of EDB’s International Advisory Council) reminds us ever so often - never say which industries are the sunset industries,’ Dr Beh laughs.

‘But we will really focus on our capital, knowledge and innovation-intensive industries. Reasons? All three offer us attributes totally aligned with what Singapore can offer investors and also what Singapore wants.’ These criteria can be used to assess if Singapore wants to pursue certain industries.

On EDB’s just-announced plans to explore three new business growth areas - urban solutions; health, wellness and ageing; and lifestyle products and services for the broad middle class - Dr Beh said EDB harnesses opportunities stemming from Singapore’s own needs.

‘For instance, Singapore needed a solution for its water needs and has been a test bed for water technology which other cities also need, and companies are working with us to pursue opportunities.’

Urban solutions - like pollution control, traffic management, and clean water and energy - will become increasingly essential as ‘from 50 per cent currently, 60 per cent of the world’s population will live in cities come 2030′, Dr Beh adds.
Source : Business Times - 23 Jan 2008

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Analysts lower estimates after another bleak day - Singapore

Analysts lower estimates after another bleak day - Singapore

Key resistance levels pitched down as panic selling persists
By LYNETTE KHOO

(SINGAPORE) If Monday was the day when fear stalked the markets, then yesterday saw a phase when it took a firmer hold. There was no let-up in the selling frenzy and bourses around Asia bled for the second straight day with the ‘R’ word very much in the frame.

Hours before the US Federal Reserve slashed interest rates in the US, fear of a US economic recession saw investors in Asia diving for cover. Many equity analysts here have started revising their market estimates for 2008 - mostly downwards.

The Singapore stock market was by no means the worst hit yesterday. Hong Kong’s Hang Seng Index slumped another 8.65 per cent yesterday, while the Jakarta Composite sank 7.7 per cent and the Shanghai Composite fell 7.22 per cent. In contrast, the revamped Straits Times Index slipped 50.6 points or 1.73 per cent to 2,866.55 at the end of the day. At one point it appeared headed for a steeper fall, having slumped 5.84 per cent during intra-day trading, before being propped up by a late-afternoon rebound. But most analysts believed that it was a technical bounce rather than a signal of bottoming out.

In less than four months, the STI has shed 26 per cent off its record high of 3,875.77 points achieved last October. Analysts are now re-doing their forecasts.

Gabriel Yap of DMG & Partners cut his end-2008 STI target to 3,568 points from 3,875. He fears that even after the worst of the selling is over, a bearish market sentiment could still persist.
Even after the worst of the selling is over, a bearish market sentiment could still persist.

Some analysts are also lowering their baseline estimates for the STI after the index breached the support line of 3,000 points on Monday - a level that now becomes a key resistance level from a technical point of view.

DBS retail market strategist Yeo Kee Yan revised his baseline estimate to 2,650 points from 3,000, while UOB Kay Hian analyst K Ajith cut his STI baseline estimate from 3,000 points to a long-term support line at the 2,760 mark.

Mr Yeo now advises that investors enter the market when the STI hits 2,650 points, down from his earlier recommendation to ‘buy at 3,000-3,100 and sell at 3,700-4,000′. Mr Ajith expects the STI to trade at 2,700-3,600 points rather than an earlier estimate of 2,960-3,900 points.

‘As it stands, valuations are already at depressed levels. We recommend selective bottom-fishing,’ Mr Ajith said.

He noted that although the jury is still out on whether the US economy is entering a recession, the market is already selling ahead of the release of some key economic data.

‘The question is whether one should even wait for two quarters, as a technical recession is simply two consecutive quarters of contraction,’ Mr Ajith said. From the looks of it, ‘the market is not waiting’, he added.

Speaking to BT before the US central bank acted, analysts had indicated that its moves would be critical. ‘If (Federal Reserve chairman) Ben Bernanke follows or indicates, like Greenspan, to bring interest rates down to one per cent, then a deep recession can be avoided,’ said Mr Yap of DMG.

But he said he did not expect the ‘Asian Crisis ghost to come haunt us’ - a period between Oct 7, 1997 and Sept 27, 1998 when the STI dropped 58 per cent from 1,921 to 801.

He advocates trading stocks that have been sold down indiscriminately, particularly those that have dropped 40-50 per cent from their recent highs without material changes in their fundamentals.

OCBC Investment Research head Carmen Lee said that she does not have a year-end STI target and is maintaining her ‘overweight’ calls on the oil and gas stocks and defensive stocks, which she believes are safe havens.

In a note released this week, CIMB-GK said it is maintaining a cautious view on the stock market even though valuations are cheap now.

‘Our preferred sectors are telecommunications, transport and multi-industry. Sectors that we advocate avoiding are manufacturing and property,’ it said.

But given the lingering uncertainty in the US economy and sub-prime loan-related writedowns by banks, it is not clear when the market will hit the bottom and how close it is to staging a rebound.

Mr Yeo of DBS said that he believes that the stock market has not hit bottom till investors start to dump even quality shares and trading volume escalates further. If that happens, even the safe haven stocks will get sold-down, he said.

But Mr Yap of DMG said that a technical bounce could start just as quickly as the market had corrected. ‘We are close to hitting the bottom simply due to the rapidity at which we have fallen,’ he added. ‘In terms of magnitude, we are another 8 per cent from the worst of the lows we have seen so far from corrections in the past 30 years. In terms of speed, this is the fastest ever in the past 30 years.’

Providing a contrarian view was Wong Sui Jau, general manager of Fundsupermart, who believes that now is a good time to enter the market. He is looking at a longer investment timeframe and also believes that the fundamentals are still in place.

‘The market is oversold,’ Mr Wong said. ‘Whether this is the bottom or not, at the current levels, I would expect gains for those buying in now and holding for two years or more.’
Source : Business Times - 23 Jan 2008

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Mindy Yong

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Dramatic 75 basis point cut in US rates - US

Dramatic 75 basis point cut in US rates - US

As markets reel, US central bank says it stands ready to act again; its next scheduled meeting is in a week’s time
By ANDREW MARKS

NEW YORK CORRESPONDENT
IN A stunning response to the panic that triggered two days of frightening sell-offs on world stock markets, the US central bank yesterday slashed interest rates by a dramatic 75 basis points.

US financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households, says the Fed.

The historic move, made shortly before the opening bell of the New York stock market, is the biggest single cut since the US Federal Reserve used the short-term rate as a principal monetary policy instrument around 1990. It is also the first time that the central bank has cut rates in an emergency session since 2001 after the attack on the New York World Trade Center towers.

The Fed’s accompanying statement to the cut in interest rates to 3.5 per cent was brief and to the point:

‘The (Federal Open Market Committee) took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labour markets.’

Wall Street responded in equally dramatic but mixed fashion, as futures markets on the Dow Jones Industrial Average, which had been down more than 500 points an hour before the stock market opened here, quickly cut those losses to the equivalent of a 100-point opening decline.

Within fifteen minutes, however, all the major US stock market indexes were plunging again. When the bell sounded to begin trading on the New York Stock Exchange, the blue chip Dow Jones index registered a 350-point, or 3.5 per cent, plunge that was pared down to 293 points, or 2.5 per cent five minutes later. By 11am New York time when The Business Times went to print, losses were further narrowed to 136 points as the Dow stood at 11,963.39.

Speaking just moments before the opening bell, John Canavan, market analyst at Stone & McCarthy Research Associates, said that he believed that the immediate impact of the Fed’s big move is questionable.

‘Futures initially broke higher when the Fed’s announcement came out, but they quickly fell back… That’s the market telling us that no one believes there’s a quick fix solution to the dangers and turmoil facing the US economy at the moment,’ he said.

In its statement, the Fed made clear that it is not done with interest rate cuts. It stated: ‘Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.’

Traders were already wondering when the next Fed interest rate cut might occur. ‘The FOMC sent a clear message that it’s not done after this 75 basis point cut. The anticipation of aggressive action should serve as somewhat of a counterpoint to the fears of what a recession in the US will do to the world’s markets,’ said Ryan, Beck chief investment strategist Joe Battipaglia.

‘It’s going to take some time, but the economy and the market will come back,’ he added.

When that comeback might be is certain to keep investors awake at night for many weeks to come. ‘We live in interesting times for better and for worse, and this is definitely one of the worst,’ said Mr Canavan. ‘There is no quick fix here. I expect we’ll see building support in the second half of the year as the Fed continues to cut rates, probably down to three per cent or lower.’

But he added: ‘There are so many wildcards out there right now, it’s impossible to make any predictions.’ The biggest wildcard is how consumer spending will be impacted in the second half of the year by the housing market slump, he said. ‘And until we know how that works out, we’re going to be stuck in a cycle of fear and hope.’

Source : Business Times - 23 Jan 2008

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Mindy Yong

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Panic and fear, not fundamentals, driving sharp market sell down - New York

Panic and fear, not fundamentals, driving sharp market sell down - New York

Widespread selling creating financial violence people hope to avoid, analysts say
WHO’S PANICKING: ‘What you see is not a panic of the public, but a panic of the sophisticated. This will have a tremendous impact on the public. It’s very serious.’ - MR JAMES SINCLAIR, a well-known gold trader

NEW YORK - THE fear is spreading.
For months now, investors have been lured to overseas markets with the promise that surging growth and solid economic fundamentals in Asia and the Middle East would insulate them from the credit squeeze plaguing the United States market.

But the broad international sell-off yesterday and Monday has raised fresh concerns that a looming recession and the fallout from sub-prime mortgages could have global repercussions.

Some analysts saw the sell-off, with leading stock market indexes off 4 per cent to 8 per cent worldwide, as being driven by fear more than by fact.

‘I don’t think it’s warranted by the fundamentals,’ said Mr Edward Yardeni, an independent strategist. ‘The global economy’s resilience in the face of a credit crunch has been impressive.’

Mr Yardeni warned, however, that in a time of panic and fear, less attention is paid to fundamentals, like a fairly tight US job market and strong growth and the extraordinary build-up of foreign exchange reserves in emerging markets. The result is panic selling and the prospect of a global recession.
‘I don’t think it’s warranted by the fundamentals. The global economy’s resilience in the face of a credit crunch has been impressive.’ - MR EDWARD YARDENI, an independent strategist

‘People are creating the financial violence that they hoped to avoid,’ he said.

Other analysts point out that the overseas uncertainty reflects the unpleasant, if not devastating, reality that the excesses of the long-running credit boom will not go away soon.

What makes this correction more dangerous, they say, is that the selling is not being driven by panicky retail investors, as it was in the collapse of the technology bubble, but by hedge funds and investment banks that find themselves saddled with illiquid securities backed by an array of valueless assets.

‘What you see is not a panic of the public. This is a panic of the sophisticated,’ said Mr James Sinclair, a well-known gold trader who oversees a financial website and who has warned investors for years about the dangers of derivatives.

‘But this will have a tremendous impact on the public. It’s very serious, and drastic emergency economic action is needed.’

Most retail investors have not invested directly in the complex securities that have ruined the reputations of some of Wall Street’s most-respected minds.

Their exposure, however, to plummeting companies like Citigroup and Merrill Lynch, and now a broader basket of stocks affected by the market malaise, will add to the sense of wealth erosion that many are already feeling from the declining values of their houses.

On his blog, JSMineSet, Mr Sinclair has told his readers that as much as US$450 trillion (S$649 trillion) worth of derivatives could disintegrate, leading to a far greater and, in some ways, unpredictable calamity.

He argued that compared with the savings and loan crisis in the late 1980s, when the formation of a trust company for beaten-down institutio