S’pore Govt earned $990m more from 2-point GST hike

S’pore Govt earned $990m more from 2-point GST hike
AMPLE RELIEF: A total of $630 million in cash went back to Singaporeans to help offset the two-percentage point hike. If their total offsets from last year to 2011 are added up, they would get back about 10 years of the additional GST they pay out, said Mr Tharman.

THE Government earned an extra $990 million last year from the two-percentage point hike in Goods and Services Tax (GST).
The bulk - $540 million - came from local consumer spending, while the remainder was from foreigners.

A large portion of the collection went back to Singaporeans.

They received a total of $630 million in cash to offset the GST increase to 7 per cent last July.

With other measures like utility rebates to help people adjust to paying more GST, the Government will spend $1.17 billion by the end of fiscal year (FY) 2007 on March 31 this year.

Finance Minister Tharman Shanmugaratnam gave these figures when responding to Nominated MP Siew Kum Hong, who wanted to know how much more the Government had collected in GST revenue and the amount of GST credits given to people.

NO EFFORT SPARED
‘I think we spared no effort in reaching out to S’poreans to encourage them to sign up. Some were not contactable… but we tried our best.’ - FINANCE MINISTER THARMAN SHANMUGARATNAM

Mr Tharman said that with the GST offset package, a typical three-room household got around $1,050 in FY 2007.

If their total offsets from last year to 2011 are added up, they would get back about 10 years of the additional GST they pay out, he added.

Mr Siew then pointed out that some 2 to 3 per cent of those living in one- to three-room flats had not signed up for the offsets. What else could be done to ensure they did not miss out, he asked.

Mr Tharman noted that the 3 per cent of one- to three-roomers were among the 80,000 or so Singaporeans who did not sign up for the offsets. Some 2.3 million were eligible to receive them.

The Government had tried hard to reach these people through the media, posters at lift lobbies and flyers customised for each household. Grassroots leaders had also gone knocking on doors, he said.

‘I think we spared no effort in reaching out to Singaporeans to encourage them to sign up. Some were not contactable…but we tried our best.’

He said the amount that was not handed out would be ploughed back into the Government budget for other programmes, including various help schemes.

Source : Straits Times - 23 Jan 2008

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Why it’s difficult for Singapore HDB to predict demand

Why it’s difficult for Singapore HDB to predict demand

By Yeo Ghim Lay
MEETING DEMAND: The HDB’s building plan will be flexible and it will boost the supply of flats when needed.

THE Housing Board cannot accurately predict demand for HDB flats years down the road.
However, it will be flexible and boost the supply of flats when needed, Minister of State for National Development Grace Fu said yesterday.

She gave this assurance in response to a question from Madam Cynthia Phua (Aljunied GRC), who wanted to know how long newly married couples can expect to wait for a new flat.

With rising property prices and surging demand for HDB flats, some young couples have reportedly had to postpone their customary wedding ceremonies because they could not get a flat in time.

Madam Phua also noted that the HDB seems to face a problem of ‘excesses’: Three years ago, it had 10,000 excess flats. Now, it has 27,000 applicants for more than 4,000 flats.

She asked if the ministry would consider providing data on the potential supply of flats over the next three years, to help young couples plan.

In response, Ms Fu said it would be difficult to ‘predict with precision’ demand for HDB flats over a three-year time frame.

‘There are certain market forces that affect supply, demand of public housing vis-a-vis private housing, for example, that are not possible to predict with accuracy,’ she said.

Ms Fu pointed out that while demand far outstrips supply in popular projects like Telok Blangah Towers, that is not the case in others.

For example, first-time flat owners have a one in two chance of getting a flat in upcoming projects in Sengkang and Punggol.

She advised buyers to carefully consider their budget and how long they are prepared to wait before making a decision on which project to apply for.

She also assured MPs that the supply of flats will be adjusted when necessary.

Last year, for instance, the HDB offered 13,000 flats for sale, more than double the number in 2006.

This year, it expects to offer about 6,000 flats in the first half of the year.

‘Our building plan has flexibility and where we see there’s a high subscription rate, we will increase the supply of HDB flats,’ said Ms Fu.

Source : Straits Times - 23 Jan 2008

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Shorter wait for s’pore cabs, better takings for cabbies

Shorter wait for s’pore cabs, better takings for cabbies

Recent fare hikes have made it easier for passengers to get a taxi during peak hours

By Goh Chin Lian

QUICK SERVICE: Passengers can now get a taxi within two to six minutes at taxi stands in the city area, down from five to 22 minutes. Cabbies also say their earnings have increased to about $318 a day on average, up from $307 previously, even though there is a drop in the number of passengers.

A MONTH after fares went up, passengers find it easier to get a cab during peak hours and cabbies report slightly higher takings.
Transport Minister Raymond Lim yesterday cited figures to show passengers can now get a taxi within two to six minutes at taxi stands in the city area, down from five to 22 minutes.

At the Suntec City taxi stand, for example, they wait on average six minutes, down from 22 minutes previously.

Major taxi player ComfortDelGro has also reported that those who call for its cabs can get one 98 per cent of the time, up from 91 per cent before the changes.

Mr Lim gave this update in Parliament, four weeks after ComfortDelGro revised its fares on Dec 17.

It tripled the city surcharge from $1 to $3 from 5pm to midnight, and upped peak-hour premiums to 35 per cent of the metered fare, compared to a $2 flat fee before.

HOW IT USED TO BE
‘I used to have to wait 20 minutes, and I might give up and call for one, only to wait 10 minutes more and they tell you there’s no cab available.’ - IT CONSULTANT GERALD LAM, 28

It also raised the flagdown fare from $2.50 to $2.80, and metered fares to 20 cents for every 385m, up from 10 cents for every 210m.

Other cab companies have since followed suit, raising fears that cabbies would end up with lower takings and passengers would find the charges too high to stomach.

But the higher cab fares have not put off passengers like IT consultant Gerald Lam, 28, whose office is in Shenton Way.

‘After a hard day’s work, you just want to get home fast,’ he said.

He finds it much easier to take a cab these days, waiting five minutes or so at the taxi stand.

‘I used to have to wait 20 minutes, and I might give up and call for one, only to wait 10 minutes more and they tell you there’s no cab available.’

So, while cabbies say they see a drop in the number of passengers, Mr Lim cited a survey of 5,000 cabbies by ComfortDelGro to show their earnings have increased.

Each collects about $318 a day on average, up from $307 previously, he said.

Still, some cab drivers have told The Straits Times they worry that cab companies will take the opportunity to raise taxi rental charges. Others say they are watching if their takings will improve after Chinese New Year, before deciding if they will call it a day.

Mr Lim said the authorities will continue to monitor the effects of the fare increases on commuters and cabbies.

Responding to Mr Baey Yam Keng (Tanjong Pagar GRC), he said he expects the market to take three to four months to stabilise,

He also assured Ms Irene Ng (Tampines GRC) that the greater ease in getting a cab in the city area has not come at the expense of passengers in suburban areas like Tampines.

The taxi fare increases are part of a larger land transport review, he added, with changes in bus, rail and car policies to be announced this month.

Source : Straits Times - 23 Jan 2008

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Fed slashes rates in bid to halt share sell off - United States

Fed slashes rates in bid to halt share sell off   - United States

‘Emergency’ cut of 0.75 percentage points is its biggest in 26 years

By Goh Eng Yeow, Markets Correspondent

THE United States central bank slashed interest rates last night in a desperate bid to halt a global share market bloodbath and keep recession at bay.
The dramatic ‘emergency’ rate cut of 0.75 percentage points was far higher than expected and the biggest single cut in 26 years. Its surprise move reflects the escalating fears that the US economy will slow down and drag the rest of the world with it.

The Fed hinted that it is prepared to keep cutting rates if necessary, saying that ‘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’.

The rate cut was announced an hour before US markets opened and had the desired effect of calming jittery European markets, with London’s Footsie index ending 161.9 points higher at 5,740.1.

On Wall Street, the Dow Jones Industrial Average initially joined the plunge that had shaken world markets for two days. It plunged by more than 460 points after opening but by 2.30am this morning (1.30pm New York time), the Dow was off by 118.52 points, or 1 per cent.

But the cut came too late for Asian bourses, which were battered for a second straight day as investors bailed out and big global funds sold anything they could get their hands on.
Singapore was the region’s best performer after it restricted losses to a mere 50.6 points, thanks to a blue-chip rally late in the day. But that brought its loss this year to 17.3 per cent.

Commentators were split on the Fed’s rate cut.

Deutsche Bank analyst John Tierney told Reuters in New York: ‘The Fed is very, very, very worried. Markets may perk up a bit until it figures out what this means.’

But Action Economics’ Ron Simpson said: ‘This is a gutless move by the Fed. (It) just fuels panic trades further. And the markets are pricing in more rate cuts next week.’

Fears also mounted that the Fed may run out of options to fight a global financial crisis. If rate cuts do not work, it has little left.

Global investors have already bought into the recession story and have been rushing for the exits this week, sending markets into free-fall.

The evidence was almost everywhere in Asia yesterday: Hong Kong’s Hang Seng Index suffered a staggering plunge of 2,061.2 points or 8.7 per cent - its biggest-ever one-day drop - while Australia went into a 7.05 per cent nose-dive and the Shanghai Composite Index fell 7.2 per cent.

India looked set for a total meltdown when its market sank by more than 11 per cent early on. A one-hour trading ban calmed nerves and allowed the index to close down about 5 per cent.

The commodities markets were also hit, as crude oil fell US$2.53 (S$3.63) to US$88.04 a barrel.

Singapore traders were struggling to get a handle on the cause of such mayhem, but there was talk that hard-pressed hedge funds were behind much of it.

They were being forced to clear their positions after failing to top up the margins on loans they had taken to make massive bets on regional stocks and commodities.

And other predatory funds were adding to the chaos and uncertainty by short-selling in the hope of buying back the shares more cheaply.

With all of that going on, it was little short of a miracle that the Straits Times Index managed to call it a day only 1.73 per cent down at 2,866.55 after plunging by 171 points after lunch.

But many fortunes were lost during the day, as banks force-sold shares of clients pledged as collateral for loans. ‘We have dealers telling us that their clients are threatening to kill themselves if they are hit by further margin calls,’ said a local brokerage’s risk management head.

Source : Straits Times - 23 Jan 2008

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Bankrupts to be barred from casinos in S’pore

Bankrupts to be barred from casinos in S’pore

By Lynda Hong,

People who are bankrupt will not be allowed to enter the future casinos in Singapore.

Recipients of Public Assistance or Special Grant are also barred from the casinos.

These two groups are excluded under the “Third Party Exclusion” in the Casino Control Act (2006).

This means that about 28,000 people are expected to be excluded from the casinos under the “Third Party Exclusion”.

This was announced by the Ministry of Community Development, Youth and Sports (MCYS) on Tuesday.

MCYS is currently working with the National Council on Problem Gambling on the regulations and procedures to administer the “Third Party Exclusion”.

There are altogether three types of exclusion orders.

Besides the “Third Party Exclusion”, the other two types of exclusions from the casinos are Self-Exclusion and Family Exclusion. - CNA/ms
Source : Channel NewsAsia - 23 Jan 2008

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Straits Trading pumps in S$60m for construction of new Singapore building

Straits Trading pumps in S$60m for construction of new Singapore building

By Jonathan Peeris/Pamela Almeda

SINGAPORE : Singapore-listed Straits Trading Company is pumping in some S$60 million to build a new building.

It will be developed on the site of the old Straits Trading Building and is expected to be completed in 2009.

Agents for the New Straits Trading Building said they see strong demand for premium mid-sized office space.

A new 28-storey Straits Trading Building will rise in the heart of Singapore’s financial district.

There will only be two tenants per floor, with about 8,400 square feet for a typical column free office.

This may be small compared to an average of 18,000 square feet for offices at the Marina Bay Financial Centre.

However, the marketing agents said that there will be demand from multinational companies and financial institutions that want to locate near Raffles Place.

Calvin Yeo, Director, Commercial Leasing, Colliers International, said, “Unlike the new supply that is coming up in the new downtown, Straits Trading Building will meet the demand for tenants requiring a prime office address…there are no new developments coming up in Battery Road and this would be an opportunity for tenants requiring that premium address.”

Rentals would likely be at S$18 per square foot.

That is comparable to other buildings nearby such as 6 Battery Road.

The new building will also have unique design features such as two open air sky gardens and concierge services for tenants.

Norman Ip, CEO, Straits Trading, said, “I won’t say it’s really super luxurious, it’s more practical in raising the standards, because I think people’s expectations all have gone up…so definitely we aim for better quality.”

Construction is expected to be completed by the third quarter of 2009. - CNA/ms

Source : Channel NewsAsia - 23 Jan 2008

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Singapore URA commercial site at Jalan Sultan draws 20 bids

Singapore URA commercial site at Jalan Sultan draws 20 bids

By Loh Kim Chin

SINGAPORE: Chiu Teng Estates has put in the top bid of S$14.8 million for a 99-year leasehold commercial site at Jalan Sultan.

This works out to S$10,480 per square metre per site area.

It is also just S$1.2 million more than the second highest bid.

The tender attracted 20 bids in all.

Meanwhile, the Urban Redevelopment Authority has decided to reject the only bid submitted for the transitional office site at Aljunied Road and Geylang East Avenue 1.

It said the bid of S$7.8 million or S$413 per square metre of gross floor area was too low. -CNA/vm

Source : Channel NewsAsia - 23 Jan 2008

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