Singapore Temasek raises Stanchart stake to 19%

Singapore Temasek raises Stanchart stake to 19%

It’s taking advantage of current market conditions
By CHOW PENN NEE

(SINGAPORE) Temasek Holdings continues to capitalise on market volatility and invest in banks. It has upped its stake in Standard Chartered to more than 19 per cent, saying that it sees value in the bank amid the current depressed stock markets.

‘We invest where we see value and have capitalised on current market opportunities to increase our shareholding in a strong financial services player,’

- Temasek executive director Simon Israel

‘We invest where we see value and have capitalised on current market opportunities to increase our shareholding in a strong financial services player,’ Temasek executive director Simon Israel said in a statement.

Regulatory figures show that the Singapore investment company has raised its stake by one percentage point to 19 per cent in UK-registered Stanchart, which focuses on emerging markets.

The increase in shareholding cost Temasek between £216.9 million (S$611.7 million) and £233 million. This is based on the range in which Stanchart shares were trading on Jan 23, the day of the transaction.

Temasek now holds 268.2 million Stanchart shares worth about £4.48 billion, based on yesterday morning’s price of £16.72 a share in London.

Temasek has been in the news for injecting much-needed capital into ailing Western banks badly hit by the sub-prime lending crisis.

Temasek and the Government of Singapore Investment Corporation (GIC) have swooped to capitalise on depressed prices on global stock markets.

Last month, Temasek said that it would pump S$6.4 billion into US investment bank Merrill Lynch. The bank reported a second straight quarterly loss after writing down US$11.5 billion of sub-prime mortgages and bonds earlier this month.

GIC injected US$6.88 billion into Citigroup earlier this month, and bought up to 9 per cent of Swiss bank UBS for 11 billion Swiss francs (S$14.2 billion) last month, making GIC the single-biggest UBS shareholder.

The increase in Temasek’s stake in Stanchart is different, as it is not related to a sub-prime rescue. A Stanchart spokeswoman said that the bank has no direct exposure to US sub-prime collateralised debt obligations.

Temasek has been raising its shareholding in Stanchart since it became the bank’s single-biggest shareholder after buying an 11.6 per cent stake from the estate of late Singapore hotelier Khoo Teck Puat in March 2006.

The latest increase in shareholding is fuelling market talk about a possible takeover or merger between Stanchart and DBS Group. DBS, South-east Asia’s largest lender, is another bank in Temasek’s stable, with the Singapore investment company owning 28 per cent of the bank.

Source : Business Times  - 30 Jan 2008

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GIC has capacity for more investments in troubled banks: Tony Tan -Singapore

GIC has capacity for more investments in troubled banks: Tony Tan -Singapore

Unusual situation in US and Europe prompted UBS, Citi deals, he explains
By VIKRAM KHANNA
(SINGAPORE) Even after taking significant stakes in UBS and Citigroup, the Government of Singapore Investment Corporation (GIC) could still invest in another distressed bank, if the deal is worthwhile, the agency’s deputy chairman Tony Tan revealed in a briefing to BT.
Significant stakes: GIC took a 9 per cent stake in UBS for 11 billion Swiss francs (S$14.2 billion). That was followed by an investment of US$6.88 billion in Citigroup, which could bring GIC’s stake in the troubled US bank to about 4per cent
‘We will look at any deal that is shown to us. We have a duty to do so. We would still have the capacity if we find it worthwhile to invest,’ he said. ‘Whether it would be of the same size as what we are now doing is a matter to be decided.’

On Dec 10 last year, GIC took a 9 per cent stake in UBS for 11 billion Swiss francs (S$14.2 billion). That was followed by an investment of US$6.88 billion into Citigroup on Jan 15, which could bring GIC’s stake in the troubled US bank to about 4 per cent.

Explaining the rationale for the two investments shortly after the closure of the Citigroup deal, Dr Tan acknowledged that both ‘are out of character for GIC’, which, he said, prefers to be more of a portfolio investor.

However, what prompted GIC to invest in UBS and Citigroup was ‘a very unusual situation in US and European financial stocks, where a combination of events - the sub-prime crisis, a credit squeeze, the possibility of recession - have all come together to create a situation where even sound banks like UBS and Citigroup are temporarily facing significant problems. But their franchises are strong’.

‘In the case of UBS, they have a worldwide global wealth management business which is something not replicable by any bank. Citigroup has an international worldwide consumer business which is also unique.’

Dr Tan indicated that the terms on which the two deals were negotiated were fair. ‘We do not think that they are unduly favourable to GIC,’ he said, adding that ‘GIC is not seeking to take advantage of anyone’. He also disclosed that it was Citigroup that approached GIC.

Stressing the safety of the investments, Dr Tan pointed out that ‘notwithstanding their large size, the two transactions have been structured with appropriate downside protection and are within GIC’s risk management parameters’.

For example, with respect to the Citigroup deal, he said: ‘Even if the market should deteriorate further (the deal) is structured in the form of convertible note preferred shares and we would get the 7 per cent share coupon. When we convert the convertible note, or when it is redeemed by Citigroup, then we would have the upside.’

He added, ‘Even if the problems continue and it takes longer than people anticipate to resolve the problems . . . the preferred convertible gives us the protection which, in these uncertain times, we regard as being very important.’

Dr Tan pointed out that GIC’s investments into UBS and Citigroup would not take the agency beyond its stipulated limits for investments in financial stocks. ‘GIC’s practice is to try and ensure that our risk is generally well spread out,’ he said. ‘(Our investments in) UBS and Citigroup, plus our present investments in financial companies in the US and Europe, are kept within the risk limits which we have prescribed.’

Addressing the concerns expressed in some quarters about recent high-profile investments by sovereign wealth funds, Dr Tan maintained that such funds contribute to financial stability.

‘If you look at the recent investments by sovereign wealth funds in the banks, they show that one benefit of sovereign wealth funds is that they are long-term investors who can provide capital when it’s needed,’ he said. ‘They are not short-term in-and-out dealers like hedge funds, and they can help stabilise financial positions.’

Source : Business Times  - 30 Jan 2008

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$450m shopping mall to add to Singapore Tampines bustle

$450m shopping mall to add to Singapore Tampines bustle

With two other malls, it will make town hub an even stronger shopping destination

By Joyce Teo, Property Correspondent
SETTING ITSELF APART: While its anchor tenants may be familiar brand names, Tampines 1 will strive to be different by bringing in new retail concepts to tie in with its ‘young, savvy and lover of all new things’ theme. — PHOTO: TAMPINES 1

THE popular suburban haunt of Tampines is set to get a fresh injection of retail buzz when a new $450 million mall, now under construction, opens for business early next year.
The arrival of Tampines 1 on the scene will alleviate a shortage of shopping space in the crowded town hub, where rents in two existing malls have risen over the years, industry sources say.

The new mall’s manager has already signed up anchor tenants. It is now 40 per cent leased and is expected to be fully leased by May, said AsiaMalls Management (South East Asia).

Located beside the Tampines MRT station, it will complement two existing malls, CapitaMall Trust’s Tampines Mall and Asian Retail Mall Fund’s Century Square.

Tampines 1, due for completion later this year, sits on a 91,000 sq ft site and has shops spread over five storeys and one basement. It will have 203 carpark lots.

The mall has a net lettable area of 260,000 sq ft, which makes it smaller than Tampines Mall’s 323,000 sq ft but bigger than Century Square’s 210,000 sq ft.

When combined, the three malls will make Tampines an even stronger shopping destination, according to Knight Frank’s deputy managing director, Mr Danny Yeo.

Popular suburban malls, such as those in Tampines, can command relatively steep rents due to their high levels of traffic.

This trend is growing now that the Housing Board has stopped building neighbourhood shops, as shoppers prefer to frequent bustling suburban malls, said Mr Yeo.

He added that ground-floor rents in Tampines suburban malls could fetch between $35 and $50 per sq ft (psf) a month.

That range is relatively high for outlying shopping centres, given that ground-floor rents in main shopping malls along the Orchard Road shopping belt go for about $45 to $70 psf on average.

While Tampines 1’s anchor tenants may be familiar brand names, such as Cold Storage, the mall will strive to be different by bringing in new retail concepts to tie in with its ‘young, savvy and lover of all new things’ theme.

One of them is a fitness club and spa that will come complete with a swimming pool.

The BEYS fitness club and spa by the Amore Fitness group will take up about 17,500 sq ft of space on the fifth floor.

Cold Storage supermarket, which will be fitted out to the tune of $3 million, will occupy almost 14,000 sq ft of the basement.

This outlet will focus on high-quality fresh food and offer more than an ordinary heartland supermarket, said the mall manager.

For instance, it will have the largest range of smoked salmon and Alaskan seafood and will offer ready-to-eat steamed lobsters and shucked oysters.

Times The Bookshop is another key tenant, while Challenger, the information technology superstore, will take up 6,100 sq ft on level four.

Challenger used to be a tenant at DBS Tampines Centre that, together with Pavilion, have been torn down to make way for the upcoming mall.

Asian Retail Mall Fund II bought the two sites for nearly $289 million. Its total investment in the mall has reached $450 million, including land cost.

Apart from new retail concepts, Tampines 1 will also offer new architecture elements, such as a European-inspired Sunken Plaza and double-floor retail shops, said the mall’s assistant general manager, Ms Stephanie Ho.

One of these duplex units - on levels four and five - will be taken up by Japanese restaurant chain Sushi Tei.
POPULAR RETAIL HAUNTS

Suburban malls will continue to command high rents, as shoppers prefer to frequent these places over neighbourhood shops.
MR YEO, Knight Frank’s deputy managing director, on the new mall’s commercial potential

NEW AND IMPROVED

Tampines 1 will offer new architectural elements, such as a European-inspired Sunken Plaza and double-floor retail shops.
MS STEPHANIE HO. the mall’s assistant general manager
Source : Straits Times  - 30 Jan 2008

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KepLand to delay Singapore home launches; posts sterling gains

KepLand to delay Singapore home launches; posts sterling gains

Developer confirms it is pushing back sales of projects by two to three weeks each

By Fiona Chan, Property Reporter

KEPPEL Land (KepLand) has confirmed it has pushed back the launch of Marina Bay Suites and will be slightly delaying other launches in Singapore this year.
This comes amid recent wild swings in stock markets as fears mount over the fallout of the sub-prime mortgage crisis and a possible United States recession.

KepLand group chief executive Kevin Wong also cast some uncertainty on how Singapore’s luxury home segment - which had led the market boom until recently - will perform this year, saying it depends on the sub-prime outcome.

But he added that prices of mid-tier and mass market homes are expected to ‘continue to go up steadily’.

Marina Bay Suites - which Keppel is developing together with partners Cheung Kong Holdings/Hutchinson Whampoa and Hongkong Land - falls into the high-end homes category.

The 221-unit condominium was initially scheduled for launch last Friday, but Mr Wong said the consortium came to a ‘consensus’ to delay the launch until after Chinese New Year, ‘after bonuses’ and ‘when people get their hongbao’.

‘There is some rationality to pushing it back,’ he said yesterday. ‘During the Chinese New Year break, people go away.’

KepLand has five other projects to launch this year but these will be pushed back due to the Marina Bay Suites delay, as the developer wants to ’stagger’ its launches, added Mr Wong.

But he emphasised that the delays - of only ‘two or three weeks’ for each project - are ‘not material’.

The other projects include 400 units in Reflections at Keppel Bay, which are scheduled to start being sold in ‘the middle of the year’, Mr Wong said.

KepLand also plans to launch 52 units in Park Infinia at Wee Nam, 15 units in The Crest @ Cairnhill, 34 units in The Tresor at Duchess Road and 56 units in Madison Residences in Bukit Timah Road.

The group yesterday posted a sterling set of results, due to good sales in projects such as The Suites at Central and Belvedere in Singapore; Villa Riviera in China; and Elita Promenade in India.

Net profit for the fourth quarter ended Dec 31 surged seven times to $572.3 million, largely due to a $388.2 million gain on revaluation of investment properties. Revenue rose 8.6 per cent to $371.4 million.

Earnings per share for the quarter soared to 79.5 cents, from 11.3 cents a year ago.

For the full year, net profit more than trebled to $779.7 million while revenue climbed 48.5 per cent to $1.4 billion.

Net asset value per share was 3.18 cents as at Dec 31, from 2.21 cents a year ago.

KepLand is declaring a total cash dividend of 20 cents for the year, consisting a final dividend of eight cents and a special dividend of 12 cents.

Source : Straits Times  - 30 Jan 2008

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Unit trusts overtake shares as Singapore CPF investment choice

Unit trusts overtake shares as Singapore CPF investment choice

Members place $4.51b in unit trusts, exceeding $4.48b in CPF cash that is channelled to stocks

By Grace Ng
EXPERT ADVICE: ‘Advisers tend to advise their clients to invest in unit trusts as these are professionally managed and may offer more diversification.’ - MR SOH, on a possible reason for the growing allocation of CPF funds into unit trusts

SHARES have long been the top investment choice for retirement nest eggs but the tide has finally turned, with once-spurned unit trusts attracting more Central Provident Fund (CPF) cash.
Members placed $4.51 billion in unit trusts as at the end of the third quarter last year, exceeding the $4.48 billion that was invested in shares under the CPF Investment Scheme (CPFIS).

This reflects a striking change in investment sentiment. Shares attracted $6.49 billion of members’ money as at end-2004, but this amount has fallen by 31 per cent over three years to the current $4.48 billion level.

It is a different story for unit trusts which chalked up just $2.52 billion at end-2004. This amount has since surged by 79 per cent to the $4.51 billion registered as at Sept 30, according to CPF figures released yesterday.

Unit trusts have had a tough time shaking off their bad reputation for dismal returns - acquired during the market downturns of the dot.com crash and Sars epidemic.

Mr Soh Chin Heng, assistant chief executive of the CPF Board services group, believes unit trusts have become increasingly acceptable because more Singaporeans are enlisting financial advisers to plan their investments.

‘Advisers tend to advise their clients to invest in unit trusts as these are professionally managed and may offer more diversification for investors’ portfolios,’ he said.

Investors’ appetite for unit trusts may also have grown in recent years, as investors are keen to tap the sparkling performance of overseas markets such as India and China, said Mr Chris Firth, chief executive of wealth management firm dollarDEX.

‘While Singaporeans may be able to do their own research on local stocks, they need fund managers’ expertise for overseas investments.’

Also, stock market volatility may have prompted some investors to cut back on shares, said industry players.

Meanwhile, unit trusts may have enjoyed a record inflow in the fourth quarter last year as members rushed to park more funds in these products before new CPF rules kick in on April 1.

These rules will allow up to $60,000 in the CPF Ordinary and Special accounts to earn higher interest rates, but this cash cannot be withdrawn for investments.

Financial advisers say their clients are using CPF funds to buy unit trusts rather than shares, as members will have to plough the proceeds from share sales back into the CPF Ordinary Account after a certain period. But unit trusts can be held as a much longer-term investment and may yield higher returns than CPF interest rates.

However, ballooning unit trust investments may taper off or even reverse after April 1, as there is likely to be a significant drop in the amount of CPF funds available after that date, said Mr Leong Sze Hian, president of the Society of Financial Service Professionals. He reckons about 75 per cent of CPF members have less than $20,000 in their CPF accounts.

The number of CPFIS-approved funds has shrunk from a peak of 444 in the fourth quarter of 2006 to 387 this month after tougher criteria were introduced at the end of 2006.

These laid down new guidelines on a fund’s quality and ‘expense ratio’, which broadly reflects how much of its assets are soaked up by costs.

At the end of the fourth quarter, only four funds fulfilled the criteria and made it to ‘List A’. This has since grown to 46, or 12 per cent of the 387 CPFIS funds.

The remaining 341 funds are on ‘List B’. The CPF estimates that more than half, or over 170 unit trusts, meet the new requirements for the expense ratio, which took effect on Jan 1.

Funds with expense ratios not lower than half those of the CPF-

approved funds in their risk category will be barred from taking in new CPF money.

List A is likely to expand, said Ms Wu Meei, CPF assistant director for investments. There are 30 top-performing funds on List B that need only to reduce their expense ratios to clear the hurdles to join List A, she added.

Source : Straits Times  - 30 Jan 2008

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Singapore SIA union urged to settle internal feud

Singapore SIA union urged to settle internal feud
Sit down and talk instead of going for ‘no-win’ litigation, labour chief advises both parties
By Zakir Hussain

LABOUR chief Lim Swee Say has called on both parties in an ongoing feud in the Singapore Airlines Staff Union (Siasu) to negotiate their differences instead of pursuing legal action.
‘Such litigation is a no-win (situation) for the union,’ the NTUC secretary-general told reporters yesterday when asked to comment.

Mr Lim, who said he was ‘very disappointed to see such a conflict taking place’, called on the union leaders and members involved to ‘let good sense prevail’. ‘Why not sit down, come together, talk through the issue?’ he suggested.

Siasu leaders and former vice-president Thangaduri Kadirval say they were defamed in a petition signed last September by 400 members from the SIA Engineering Company branch. Siasu has some 10,000 members.

The petition referred to a move, allegedly by the union’s leaders, to appoint Mr Kadirval, who is known also as T Velu, as a cadre member even though he was voted out at a branch election.

It was addressed to Manpower Minister Ng Eng Hen and copied to several other government and NTUC leaders, including Mr Lim.

Last month, lawyers acting for Siasu general secretary Mohd Hussain Kassim and executive council members sent a letter to one of the petition’s organisers, and called the allegations ‘totally untrue and unfounded’. And this month, lawyers acting for Mr Kadirval sent a similar letter to several others who signed the petition.

Among other things, the letters said the claims in the petition constituted ‘a most serious and damaging libel’, demanded a letter of apology to be published in the media, and sought damages.

Talking to reporters on the sidelines of the NTUC Workplan Seminar, Mr Lim said that in general, ‘union leaders are here to serve the interest of the workers. Our workers must respect the leadership of the union leaders’.

He said NTUC was in no position to judge whether the accusations of the members or leaders were warranted, justified, or accurate as it was not present at the union’s meetings. But he had strong words for both groups: ‘On the part of the union leaders, using union funds to sue the workers, what’s there to gain for the unions?

‘On the part of the workers, if there’s any disagreement with the action of the union leaders…getting hundreds of workers to sign up and to get involved with such litigation to the extent where, at the end of the day, they may have to sell the house, sell the car, to pay for the legal fees and so on, I will say who gains?

‘The lawyers. The lawyers of both sides, regardless of the outcome of this suit, will gain. But I see no gain for the union, I see no gains for the members.’

Mr Hussain and Mr Kadirval declined to comment when contacted, saying this was an internal matter. Several members who received letters from Mr Kadirval’s lawyers also declined to comment.

But ex-Siasu president Eddie Chew, who stepped down last year, agreed with Mr Lim that both parties should work things out. ‘It would be good if NTUC comes in and gets them to stop,’ he said.
Source : Straits Times  - 30 Jan 2008

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Getting more contract workers back on CPF - Singapore

Getting more contract workers back on CPF  - Singapore

THE labour movement will step up efforts to enlist some 100,000 low-wage casual and contract workers into the Central Provident Fund (CPF) scheme this year, labour chief Lim Swee Say said yesterday.
Being under the umbrella of the CPF would allow them to benefit from proposals to give Singaporeans a lifelong income stream if they live past a certain age, he said.

A committee tasked with designing a national annuity scheme is expected to release its report soon.

An annuity is an insurance product in which a person invests a lump sum in return for a monthly payout for life.

Initial plans were for those under 50 to use part of their CPF money to buy the annuity to get payouts from age 85.

‘These recommendations will be helpful only if the workers are part of the CPF network,’ said Mr Lim.

The bulk of casual and contract workers, such as cleaners and security guards, are aged 40 or older with, at most, secondary education.

Mr Lim said the National Trades Union Congress (NTUC) would also help them upgrade their skills and productivity so they can earn more.

Last week, Nominated MP Cham Hui Fong, who heads NTUC’s unit for contract and casual workers, said the unit had convinced about 6,000 workers to become CPF contributors.

Said Mr Lim: ‘We can help 10,000, another 10,000. At the end of the day, we believe that every 1,000 workers we help to…come on the CPF scheme, we are at least making a difference to the lives of the 1,000 workers.’

But NTUC’s efforts alone were not enough, he noted, and the committee was looking at having stronger guidelines for employers of such workers and those who engage them.

‘We should take this 100,000 number seriously because for every year these workers do not join the CPF network, they are missing out, not just on the Workfare Income Supplement for that year, but more importantly, they are missing out this opportunity to save for retirement and later on to benefit from the recommendation of the National Longevity Insurance Committee,’ he said.
Source : Straits Times  - 30 Jan 2008

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Help for 35,000 to chart new careers, get better jobs - SIngapore

Help for 35,000 to chart new careers, get better jobs  - SIngapore

Many will be hot-housed at new Bukit Merah centre for skills upgrading

By Keith Lin

ABOUT 35,000 Singaporeans will be given a leg up by the labour movement to chart new careers or get better-paying jobs.
This target, announced by labour chief Lim Swee Say yesterday, marks a significant increase over the 26,800 it reached out to last year.

Among those who stand to gain are low-wage earners, those who want to return to the workforce such as housewives and retirees, as well as professionals, managers, executives and technicians (PMETs).

Many of them will be hothoused at the upcoming Employment and Employability Institute, said Mr Lim at the National Trades Union Congress’ (NTUC) annual workplan seminar to set goals for the labour movement. It was attended by about 500 people, including business leaders and government officials.

The centre in Bukit Merah is a one-stop shop for skills upgrading, job placement and career consulting, among other services. It will be officially opened by Prime Minister Lee Hsien Loong on Friday.

The institute aside, the cogwheels of assistance for such groups have been in motion since last year, when NTUC implemented a host of programmes to help them get jobs. These range from job fairs to coax women back to work, to boosting the productivity and pay of security officers.
But Mr Lim wants the NTUC and its various partners to ramp up the job creation momentum this year, given the looming spectre of an economic slowdown and escalating living costs.

‘Will this come true? We have no idea,’ Mr Lim told reporters after the seminar.

‘But regardless of what happens in 2008…let us continue to make sure that we do better than the rest of the world, so that our workers in Singapore can cope with higher energy prices and higher cost of living better than workers in other parts of the world.’

His optimism on the jobs-creation front is grounded in the fact that the economic boom in the past few years has created a labour market hungry for workers.

NTUC’s latest plan to boost job opportunities for Singaporeans involves three major thrusts.

Firstly, convincing those who have left or are thinking of leaving the workforce to reconsider their options.

One target it has set for the year: getting 600 unionised companies to rehire seven in 10 workers who have hit the retirement age of 62 - ahead of the introduction of the re-employment law in 2012.

Secondly, more workers will be reskilled at their jobs, to help them earn more or face brighter career prospects.

Cabbies, for example, will soon be trained under a new scheme to boost their service standards to qualify for assignments such as ferrying delegates during international conferences held here.

The NTUC will also intensify efforts to place rank and file workers as well as displaced PMETs in suitable jobs.

Mr Lim stressed that such help programmes should not only benefit workers, but also make business sense for companies.

Doing so, he added, would ensure companies do not back out of taking on such workers even if a global economic slowdown occurs.

Human resources experts interviewed by The Straits Times were optimistic of NTUC’s plans to reach out to more workers.

Ms Annie Yap, chief executive officer of human resources consultancy GMP, called it a ‘well-timed move’.

‘Unlike during boom time, when there is little time to do anything else other than ramping up the number of employees, companies now will have time during the slowdown to transform and restructure their workforce.’
Source : Straits Times  - 30 Jan 2008

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Singapore Prime Taxis to raise fares from March

Singapore Prime Taxis to raise fares from March

90% of its cabbies vote for higher fares after sticking to old rates for a month

By Christopher Tan, Senior Correspondent
LIMO SERVICE: Prime Taxis will launch it limousine fleet tomorrow, starting with six Toyota Estima MPVs and one Toyota Camry. The cab operator is the last company to increase its fares. — ST PHOTO: LAU FOOK KONG

AFTER holding out for over a month, Singapore’s smallest cab operator, Prime Taxis, will raise its fares to come in line with other companies here.
At a meeting yesterday, over 90 per cent of Prime’s 120 cabbies voted in favour of raising fares, said general manager Tan Choon Chye.

From March 1, the flagdown rate for the company’s 100-plus copper-coloured cabs will rise by 30 cents to $2.80.

Thereafter, the fare will jump by 20 cents every 385m - up to 10km - from 10 cents every 210m previously.

At the same time, Prime will implement what commuters have called the most unpopular change of all: a 35 per cent surcharge on the metered fare during peak hours. That is up from the previous flat charge of $2.

This surcharge ends up being especially pricey for commuters who make long-distance trips. For instance, a $22 ride before the fare hike now costs nearly $30 during peak hours.

Mr Tan said, however, that Prime’s flagdown is still lower than the $3 levy for other taxis with automatic transmissions.

‘Automatic cabs are smoother and more comfortable for passengers,’ he said.

Prime cabby Lim Poh Huat, 50, welcomed the fare adjustment.

‘We are a small player. Commuters who want a cab can’t wait for ours to come along. It is better for us to just follow the big boys,’ the 17-year veteran said.

Taxi-drivers are picking up fewer passengers since the fare hike on Dec 17.

But because of higher fares, most have been able to make as much money as they did before the increase. Prime cabbies faced a double whammy of fewer rides and no fare increase.

However, they enjoy the lowest running cost in the trade as taxi rental starts from $69, versus the industry average of $90. Prime taxis can run on compressed natural gas too - the fuel is about 25 per cent cheaper than diesel.

Part of parallel importer Prime Leasing, Prime Taxis started plying last September.

Its fleet consists of Japanese cars such as the Toyota Wish, Honda Airwave and Honda Stream.

Tomorrow, it will launch its limousine taxi fleet, starting with six Toyota Estima MPVs and one Toyota Camry.

There are now about 24,500 taxis in Singapore - 45 per cent more than in 1997.
Source : Straits Times  - 30 Jan 2008

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Singapore Medisave use expanded to cover more treatments

Singapore Medisave use expanded to cover more treatments

It will be able to cover outpatient care for asthma, cancer scans

By Salma Khalik & Shefali Rekhi

PATIENTS will soon be able to use their Medisave money to cover more outpatient treatments, such as asthma and scans for cancer, Health Minister Khaw Boon Wan announced yesterday.
From April, about 40,000 cancer patients will be able to draw up to $600 a year for procedures such as magnetic resonance imaging and computerised tomography or CT scans - a move expected to result in about $25 million in withdrawals annually.

The push to extend Medisave was welcomed by doctors across Singapore. Dr Khoo Kei Siong, senior oncologist at Parkway Cancer Centre, said the subsidy for cancer scans was a positive step. Imaging is an integral part of treating cancer, he said. ‘It will really help patients to…defray some of the costs.’

The $600 in subsidies should cover most of the costs of the two or three scans most cancer patients need each year, a Health Ministry spokesman said.

Mr Khaw also announced that in March, patients will be able to use Medisave for the out-of-hospital treatment of asthma, and possibly a chronic lung disease that affects mainly heavy smokers.

‘I think the people who benefit the most will be middle-income families,’ said Dr Chng Seo Yi from National University Hospital’s Children’s Clinic. ‘The well-off might still choose to pay out of pocket, while the very poor will be assisted by medical social workers.’

Since Medisave was extended to outpatient treatment of diabetes in October 2006, there have been many calls to extend its use to other chronic problems.

Asthma had been on the cards for some time, said Mr Khaw.

‘Just as safaris have their Big Five (must-see animals) chronic diseases also have their Big Five,’ he said. Annually, up to $300 per Medisave account can already be used to control high blood pressure, cholesterol, diabetes and stroke. Adding asthma will complete the Big Five, he said.

Between 2006 and the middle of last year, more than 50,000 people had withdrawn about $9 million from Medisave for outpatient care.

Mr Khaw said Medisave may be expanded to other chronic illnesses where early treatment or regular monitoring can keep people out of hospital. That includes chronic obstructive pulmonary disease, a by-product of heavy smoking.

‘This is a good thing as the funds can help people afford the newer treatments…which are a little more expensive and have also been shown to be more effective,’ said Dr Hui Kok Pheng, president of the Asthma Association of Singapore.
Source : Straits Times  - 30 Jan 2008

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