SingTel, PacNet join new cabling project - Singapore

SingTel, PacNet join new cabling project  - Singapore

Consortium to lay Pacific undersea cables linking Japan and the US, promising more stable, high-density Net traffic
By Alfred Siew, Technology Correspondent 
 
SINGTEL and PacNet have joined a consortium that includes online giant Google to lay new undersea cables that could avoid a repeat of the 2006 Asian telecom blackout.
The US$300 million (S$421 million) system could also mean smoother videos delivered from Google’s YouTube video sharing website.

Called Unity, the cable system will span 10,000km of the Pacific Ocean and link Chikura, Japan to Los Angeles in the United States.

Singapore users will be able to connect to American websites, which attract the bulk of Internet traffic from here, via Japan when the system is completed in 2010.

It promises to better withstand shocks like the earthquake that knocked out phone and Internet services in the region in December 2006.

Tremors off Taiwan cut several undersea cables at once, including backup systems.

Also, just last month, ship anchors in the Mediterranean cut two cables, logging off the Middle East and much of South Asia, including India.

SingTel spokesman Dylan Tan said the new system was not planned directly in response to those outages, but it could help overcome similar problems in future.

‘For areas where there are potential cable cuts, the cables are dug deeper so they can avoid being damaged,’ he told The Straits Times.

The new cyber highway has a capacity of 7.68 terabits per second. This lets as many as seven million Net users download a 1MB file simultaneously without slowdown.

On paper, this means it can carry as much traffic as the C2C system that links cities such as Hong Kong and Singapore.

The new cyber highway is among a handful that will be laid across the Pacific Ocean to hook up Asia with the US in the next few years, to cater to rising Net usage.

Analyst Paul Budde from telecom consultancy Paul Budde Communication said the usage boom is partly due to the popularity of online videos.

He added: ‘One of the most exciting elements of the deal is that Google is a partner…They simply want to make sure that affordable high-speed broadband will become available so people can use their media-rich applications like YouTube.’

Besides SingTel, PacNet and Google, other regional telcos involved in the project are Bharti Airtel, Global Transit and KDDI.

The construction of the Unity project has been awarded to NEC and Tyco Telecommunications.
 
Source : Straits Times  - 28 Feb 2008

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UBS shareholders approve Singapore GIC’s $14b capital injection

UBS shareholders approve Singapore GIC’s $14b capital injection 

Over two-thirds vote in favour of proposal; chairman, board castigated

By Grace Ng, Finance Correspondent 
TENSE MEETING: After seven long hours, some 6,500 UBS shareholders voted in favour of the proposed capital injection. — PHOTO: REUTERS
 
UBS shareholders approved last night an 11 billion Swiss franc (S$14.16 billion) injection by the Government of Singapore Investment Corp (GIC) into the Swiss banking giant following a tempestuous marathon meeting.
Those who attended the emergency meeting in Basel, Switzerland, fumed over the billions of dollars UBS lost as a result of its exposure to the United States sub-prime mortgage crisis.

But seven tense hours after the meeting started at 5pm Singapore time, some 6,500 shareholders present voted overwhelmingly in favour of the proposed capital injection totalling 13 billion Swiss francs by GIC and a Middle Eastern investor.

About 599 million votes were in favour, far exceeding a two-thirds majority of 458 million votes needed for the proposal to pass.

They also approved the bank’s proposal to replace a cash dividend with a share dividend, allowing the bank to raise 4.4 billion Swiss francs and fortify its balance sheet.

Many shareholders arrived at the meeting on a train called the UBS Special, put on especially for the event.

Before the vote, livid shareholders castigated UBS chairman Marcel Ospel over the bank’s hefty 20 billion Swiss francs’ worth of charges related to investments in US sub-prime mortgages.

The write-downs dealt UBS its first full-year loss in over a decade.

One furious shareholder even tried to storm the stage, where the UBS board was seated, The Associated Press reported.

‘I think it would be better if the whole board would be replaced and that their pensions be withdrawn,’ said an angry Swiss shareholder.

Another said: ‘A bank is not a casino. You’ve placed high bets and you’ve lost a lot.’

The meeting at St Jakob’s Hall, a sports arena and concert hall in Basel, started 15 minutes late, ‘contradicting Switzerland’s reputation for rigorous punctuality’, to accommodate ‘extra numbers in two overspill halls’, reported the Financial Times.

Mr Ospel kicked off the meeting with an impassioned plea to shareholders to back injections of 11 billion Swiss francs from GIC and another two billion Swiss francs from an unidentified Middle Eastern investor.

Some shareholders, such as Swiss groups Actares and pension fund Profond, earlier called for a rejection of capital infusion, saying it was unfair that they could not participate in the convertible bond issue. They instead sought a rights issue.

Mr Ospel insisted the capital infusion was ‘absolutely necessary’ to help UBS get back on its feet.

He also turned down calls for his resignation, saying he would not ‘thoughtlessly relinquish” his duties.

The current crisis is the most difficult since the 1929 market crash, and UBS ‘judged certain markets wrongly’, said Mr Ospel.

‘We subsequently noticed this error, but due to the rapid evolution of events were unable to react in time,’ he said.

Still, Mr Ospel, 58, who helped push a merger that created UBS 10 years ago, said it was his ’supreme duty’ as co-architect of UBS to ’stay on the front lines’ and ensure the bank ‘gets back on the road to success’.

He also said UBS was looking for senior bankers to join its board.

UBS is reportedly having difficulties finding anyone willing - or brave enough - to take the hot seat Mr Ospel has occupied for seven years.

More than 50 shareholders rose to speak - limited to five minutes each.

Some shareholders expressed fears that UBS could face further hefty write-downs this year.

Mr Ospel told shareholders: ‘I fully understand, and we’re likely to hear it often today, that you are extremely disappointed by what has happened.’

Source : Straits Times  - 28 Feb 2008

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Tharman to Singapore GST critics: Increase timely and necessary

Singapore DPM Wong Kan Seng says S’pore attracting more new PRs, citizens

Singapore DPM Wong Kan Seng says S’pore attracting more new PRs, citizens

By May Wong,

SINGAPORE: Singapore has been increasingly attracting new citizens and permanent residents (PRs), who help sustain the country’s economic growth.

Deputy Prime Minister Wong Kan Seng said local Singaporeans alone are still not sufficient to meet the manpower demands here.

He revealed the latest immigration statistics during the debate on the Prime Minister’s Office budget on Wednesday.

According to the figures, more foreigners have decided to call Singapore home for good.

Last year, Singapore saw over 63,000 new PRs, an 11-per-cent increase from 2006; and the city-state also welcomed more than 17,000 new citizens, a 30-per-cent jump.

Mr Wong said, however, there were only 760 more babies born last year compared to 2006.

He added that Singapore must continue to keep an open-door policy, both to new immigrants and foreign talents, although citizens remain the core of the population.

“For now, Singapore is a talent magnet for many. However, the global competition for talent is intense. Whether we like it or not, those who are capable and talented will be drawn to places with better opportunities and where they feel welcomed. And if Singapore does not welcome them, they will simply look elsewhere and they will then compete against us,” said Mr Wong.

On integrating new citizens into the society, the minister cited some who have adapted to Singapore and are contributing to the city-state.

One of them is Kim Jin Ju from South Korea, a prefect at Yu Neng Primary. She participated in MediaCorp’s Roving DV competition in 2006 and her school’s entry came in first.

While he acknowledged MPs’ concerns over the pace of immigration and social integration, Mr Wong said attracting immigrants will remain a key strategy to ensure the country’s long-term growth and prosperity.

“So let us open our doors, minds and our hearts. We must work together, be welcoming to new immigrants and help integrate them into our community. There is a need for mutual acceptance, adjustment and respect. We can then live as one harmonious family to create even greater possibilities for ourselves, and our children and our future generations to come,” Mr Wong said.

He also said schools, companies and the People’s Association have implemented programs to help promote integration. But he noted that more can be done to break down barriers and dispel unwarranted biases.

Mr Wong added that Singaporeans based abroad are not forgotten. The government has been trying to engage them actively through events such as the Singapore Day. The inaugural event, held in New York last April, saw some 6,000 attendees.

He said another Singapore Day will be held in Melbourne, Australia this October. - CNA/ac

Source : Channel NewsAsia  - 28 Feb 2008

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Tharman says Singapore govt land sales policy responsible, market-led

Tharman says Singapore govt land sales policy responsible, market-led

By Wong Siew Ying,
 
•  MPs raise concerns about Singapore’s monetary policy
 
•  SM says public must not focus too much on social aspect of Budget
 
•  Freeze on government fees extended till end of 2008
 
•  MPs suggest reducing rentals to cushion impact of rising business costs
 
•  MP Neo calls for more direct assistance for low income group
 
 
 

SINGAPORE: According to Finance Minister Tharman Shanmugaratnam, the Government Land Sales policy has been a responsible one that is also market-led.

The minister made this comment in Parliament on Wednesday in response to questions raised during the Budget debate. He added that the government is doing the right things to sustain Singapore’s competitiveness.

The Government Land Sales programme came under the spotlight in Parliament earlier this week.

MP of Ang Mo Kio GRC, Inderjit Singh, said the programme was responsible for pushing up property prices as the Reserve List system raised prices artificially.

In response, Mr Tharman argued that the system allowed market forces to play.

He said: “We ensure that enough supply is made available to meet basic demand through the Confirmed List, and let the market decide whether it wants to develop more sites through the Reserve List. No one anticipated the strong surge in demand for office space in the last two years, coming right after the 2002 to 2004 period, when the market conditions were very weak.”

Mr Tharman noted that during the same period, some 120,000 sqm of office space were converted to other uses.

Rising office rentals are a concern, with some MPs asking for rebates to help businesses cope. But the minister said rental rebates will have an adverse effect.

“In an environment of strong demand for rental space, the outcome of government giving tax rebates on rental costs will be that prices are bid up further because this would merely stimulate demand for rental space without adding to the supply of space,” he said.

Mr Tharman also added that there was no need to cut tax rates. He said the incentives offered this year to spur productivity and innovation will complement tax cuts announced previously.

These cuts include a reduction of Corporate Income Tax from 20 percent to 18 percent as well as improvements to Partial Tax Exemption for SMEs. Taken together, it will translate to S$160 million annual tax breaks for the SMEs.

The finance minister gave the assurance that Singapore will focus on providing a conducive tax environment for companies.

MPs have also asked in Parliament for more incentives to reward eco-friendly business practices.

To this, Mr Tharman said Singapore has managed to achieve good economic growth while maintaining a high quality environment, and further steps will be taken to promote energy efficiency.

These measures will be announced by the relevant ministries at the Committee of Supply debate.

On workforce training, Mr Tharman said current programmes are already heavily subsidised. But more studies will be done on the Individual Learning Accounts Scheme as suggested by MPs during the debate.
- CNA/so
Examples of fees that will be covered under the fee freeze:

1. Birth registration fee
2. Identity card registration fee
3. Examination fees (e.g. PSLE, ‘O’ level, ‘N’ level, ‘A’ level)
4. Joint admissions exercise fees
5. Highway code test fee
6. Driving test fee
7. Marriage certification fee
8. Cremation fee
9. Interment (burial) fee
10. Exhumation licence fee
11. Passport fee
12. Admission charges to public swimming pools
13. Refuse disposal fee
14. Dog licence fee
15. Water-borne fee
16. Foodstall licence fee
17. Hawker stall licence fee
18. Public entertainment licence fee
19. Video licence fee (e.g. censorship fee)
20. Film & publications licence fee
21. Arts licence fee
22. Trademark fee
23. Hotel licence fee
24. Fire certificate fee
25. Petroleum storage licence fee
26. Ambulance fee
27. Registration of society fee
28. Childcare licence fee
29. Shipping registration fee
30. Public Trustee fees
31. Bankruptcy fees

Source : Channel NewsAsia  - 28 Feb 2008

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Rules relaxed for overseas S’poreans to register as voters

Rules relaxed for overseas S’poreans to register as voters

By Valarie Tan,
  

SINGAPORE: The Elections Department has relaxed several criteria for overseas Singaporeans to register as voters in Singapore, said Deputy Prime Minister Wong Kan Seng in Parliament on Wednesday.

Overseas Singaporeans will only need to have stayed at least 30 days in Singapore over a period of three years to qualify for voter registration.

Previously, the rule requires one to have spent two years over a period of five years in Singapore.

And unlike the current rule, overseas voters will no longer be disqualified from voting even if they have had their names entered or retained in the Register of Electors in another country.

The period to register to vote has also been extended for overseas Singaporeans.

Instead of the current 21 days, they can now register online using their SingPass anytime after a notice has been issued by the Elections Department, right up to the day the Writ of Election is issued.

There is also a news polling station for overseas voters. They can now vote in New York City, in addition to Canberra, Tokyo, Beijing, Shanghai, Hong Kong, London, Washington DC and San Francisco.

Singapore conducted its first round of overseas voting during the 2006 General Election.

The National Population Secretariat estimates that about 150,000 Singaporeans are living overseas and the top five destinations are America, Australia, China, Hong Kong and the United Kingdom.
- CNA/so
Source : Channel NewsAsia  - 28 Feb 2008

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Ho Bee’s full-year profit jumps 176% to S$272m - Singapore

Ho Bee’s full-year profit jumps 176% to S$272m - Singapore
SINGAPORE: A robust property market and a strong economy have helped developer Ho Bee to report record full-year earnings.

Net profit jumped 176 percent on year to S$272 million. This was achieved on the back of record revenues of S$596 million, up 52 percent on year.

Ho Bee’s development properties reported higher sales due to the progressive recognition of income from its residential projects, including those at Sentosa Cove, Orange Grove Road and Holland Road.

Its property investment division has continued to benefit from high occupancy levels and improvement in rental rates.

Ho Bee’s Chairman and CEO Chua Thian Poh said he is cautiously optimistic about the market outlook.

He cited recent Urban Redevelopment Authority (URA) data that suggested a continued rise of overall prices of residential properties in the fourth quarter, albeit at a lower rate.

URA had said overall prices for residential properties rose 6.8 percent compared to 8.3 percent in the previous quarter. For non-landed properties, the increase was 7.2 percent, against 8.3 percent in the previous quarter.

Year-on-year, overall prices have gone up by 31 percent, while non-landed properties saw a 33 percent increase.

Ho Bee has proposed a one-tier final dividend of 2 cents per share.
- CNA/so

Source : Channel NewsAsia  - 28 Feb 2008

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CapitaLand says Vietnam market is 2nd most important after Singapore

CapitaLand says Vietnam market is 2nd most important after Singapore

By Hoe Yeen Nie, 
   
  

DANANG, Vietnam: Property developer CapitaLand said it views the Vietnam market as being the second most important market for itself after Singapore.

President and CEO Liew Mun Leong has likened the growth potential of Vietnam to Chinese cities like Shanghai and Guangzhou.

To help the company expand in Vietnam, CapitaLand has formed a strategic partnership with another Vietnamese developer.

Urbanisation in Vietnam is growing fast, fuelled by strong economic growth. The United Nations has estimated that by 2015, one third of Vietnam’s population will live in cities, creating a wealth of opportunities for property developers like CapitaLand.

Mr Liew said: “I see Vietnam as the second best growth area, the second best growth engine for us in Southeast Asia, next to Singapore. The dynamics of this market are the same as what I saw in Shanghai, Beijing and Guangzhou ten years ago. It has identical growth factors and identical prospects of urbanisation, economic growth and a demand for housing and real estate.”

To better ride the development boom, CapitaLand has formed an alliance with Tham Nam Long Investment Company, a major player in the property scene here.

Together, they plan to develop residential properties, and commercial and residential mixed developments.

CapitaLand has also moved to set up a US$300 million fund to invest in real estate projects in Vietnam.

It has signed a memorandum of understanding with Citi Private Bank to act as the placement agent for the fund. CapitaLand said it intends to take a 30 percent sponsor stake in it.

The developer said late last year that it wants to double the number of residential homes under development to 6,000 over three years.

It is also planning to move into the integrated leisure, entertainment and conventions (ILEC) sector.

CapitaLand already has a presence in Ho Chi Minh City and Hanoi. Now, it wants to go into other cities.

The resort city of Danang is the third busiest port in Vietnam, but it has yet to see foreign investment on the scale enjoyed by Hanoi and Ho Chi Minh City.

Besides real estate, government officials here want to develop Vietnam’s potential as a holiday destination, and they are banking on places like Danang to pull in the tourist dollar.
- CNA/so

Source : Channel NewsAsia  - 28 Feb 2008

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Integrate foreign talents into our society: DPM Wong - Singapore

Integrate foreign talents into our society: DPM Wong - Singapore
SINGAPORE must push on with its efforts to attract global talents, but it must also pay equal attention to integrating them into the local society, according to Deputy Prime Minister Wong Kan Seng.
‘Locals alone are not enough to meet our manpower demands,’ he told Parliament yesterday during the debate on the budget for the Prime Minister’s Office. ‘Contrary to Inderjit Singh’s (Ang Mo Kio) suggestion that the rate of immigration is too fast and unrealistic, we must not slow down in attracting global talent just because some people feel uneasy about it.’

Mr Wong said the war for talent is now global - and very intense. ‘Whether we like it or not, those who are capable and talented will go to places with better opportunities and where they feel welcomed,’ he said. ‘And if Singapore does not welcome them, they will simply look elsewhere and they will then compete against us.’

Having a good living environment is key in drawing global talent - and Singapore has so far done well in this department, Mr Wong said.

‘Singapore’s excellent living environment has become our competitive advantage to root residents and attract investments and talents,’ he said.

Many developed countries, while competing aggressively for global talents, are not doing enough to integrate them.
 
‘This has resulted in clashes and disputes between communities in countries such as Australia, France and even the US,’ Mr Wong noted. ‘Such problems can also arise in Singapore if we do not make the effort to integrate our immigrants,’ he cautioned.
Source : Business Times  - 28 Feb 2008

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Singapore Govt uses ‘realistic’ assumptions instead of ‘optimistic’ ones

Singapore Govt uses ‘realistic’ assumptions instead of ‘optimistic’ ones

GST introduced while revenue position was still strong: Tharman
By CHEN HUIFEN

IN explaining the background to the way the government has turned out to have gathered far more money than was predicted in last year’s Budget, Finance Minister Tharman Shanmugaratnam told Parliament yesterday that the basic approach is to use the best information available at the time, with ‘realistic’ assumptions rather than ‘optimistic’ ones.
 
Mr Tharman: ‘We cannot expect too much prescience in the budget planning process.’ 
At the time of the Budget last year, the finance ministry estimated 2006 stamp duties to be $1.5 billion and hence projected the same level for 2007, Mr Tharman said.

‘This was because 2006 was itself already an exceptional year,’ he said. ‘In fact the subsequent data for FY2006 based on actual collections for January and March - the data comes out later, after our Budget - showed a significant increase in stamp duties and took total stamp duty collections to $2 billion, not $1.5 billion which we estimated at the time of the Budget.’

Eventually, the property market accounted for more than $3.5 billion in extra revenues, lifting the budget surplus for FY2007 to $6.4 billion.

Although policymakers had assumed further price increases in the property market then, they did not expect the surge in the volume of transactions.

There was also uncertainty on whether the buoyancy in luxury projects would filter through to the rest of the property market.

Mr Tharman assured the House that soft targets were not set just so they could be exceeded.

In the past 10 years, there had been six instances of over-projection in the Budget positions.

But he conceded that accurate forecasting will remain difficult, ‘especially because we are a city economy that is fully exposed to the swings in global markets and to the vagaries of our own asset markets’.

He added: ‘We cannot expect too much prescience in the budget planning process.’

On the timing of last year’s GST increase, Mr Tharman explained it was necessary to introduce it while the revenue position was still strong, so that the government would be able to fully offset the impact on cost of living for most Singaporeans.

In fact, the $1.4 billion collected from the increase in GST was equal to the GST offset package and the Workfare Income Scheme paid out.

Data collected showed that the bottom 60 per cent of Singaporeans actually received more in offsets than the additional tax paid.

Mr Tharman also rebutted the argument that the government’s ‘grow at all costs’ policy had led to rising business costs and to lower-income Singaporeans being worse off.

‘It is precisely the rapid growth that we have seen in the last few years that has turned things around for our low income households and allowed them to enjoy positive growth in real incomes after the very difficult period they went through earlier in this decade,’ he said.

He stressed that the way to assure long-term growth for Singapore is to take advantage of opportunities when external conditions are favourable.

Small businesses, for instance, have been better off because Singapore has grown well in the last few years.

Even those that are heavily reliant on the domestic market have seen their businesses pick up because of the strong growth of Singaporeans’ incomes.

‘Costs are higher, but so are overall volumes and demand for their goods and services,’ Mr Tharman said.

He went on to say that the government is studying the individual learning account scheme as a tool to encourage participation in adult learning.

In the meantime, there are already incentives and subsidies of up to 80 per cent of fees to drive re-training of workers.

Although this year’s Budget is seen to provide for more significant benefits for households than businesses, Mr Tharman urged for it be seen as a balance between short-term relief measures for rising costs and long-term initiatives to build up capabilities.

While global uncertainties exist, the economy is not in a crisis, unemployment is at a record low, and the Singapore economy is expected to grow 4-6 per cent this year.

Source : Business Times  - 28 Feb 2008

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