Lawyers on the move as firms beef up tax practices

Lawyers on the move as firms beef up tax practices
TAX lawyers are playing musical chairs, with several partners getting ready to take up new jobs at rival firms.
BT understands that Yeoh Lian Chuan, a partner at Allen & Gledhill’s tax practice group, will leave in the coming months. It is not clear where he is heading.

When contacted, Allen & Gledhill confirmed the move but was mum on his departure date.

Mr Yeoh, who joined the firm in 2001, focuses on Singapore taxation and financial services advisory work, according to Allen & Gledhill’s website.

His move comes after changes at the tax practices of other law firms.

Drew & Napier said recently that it has brought in Ong Sim Ho and his team to beef up its tax practice. Mr Ong, who runs a boutique tax law firm carrying his name, has been tasked with leading and expanding the tax law practice at Drew & Napier.

His entry will take the Drew & Napier team to about nine. At the same time, Drew & Napier’s current tax group head, Teoh Lian Ee, has indicated that she wants to retire this year.
 
Hiring Mr Ong is part of the firm’s succession strategy as it restructures its tax group by creating three more specialist teams on top of its existing trust team.

Earlier this month, Rajah & Tann said Stacy Choong, now a director at Drew & Napier, will join its tax practice by June 1.

Ms Choong will join tax specialist Christina Ng at Rajah & Tann to develop its tax practice.
Source : Business Times - 14 March 2008

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Flu situation here stable: Singapore Ministry of Health

Flu situation here stable: Singapore Ministry of Health

By ARTHUR SIM AND JOANNE CHIEW

THE Ministry of Health (MOH) said yesterday that the influenza situation in Singapore is stable, and no significant increase in acute respiratory infections (ARIs) has been reported in polyclinics.
 
MOH advises there is no need for S’poreans to rush to get themselves vaccinated.
 
 
 
 
 
 
This update comes amid fears that the outbreak of influenza in Hong Kong, which has already claimed three lives, could be caused by avian flu and Sars.

But Hong Kong authorities have already ruled them out as causes of the deaths.

MOH said it is working closely with the territory’s health officials in monitoring the situation there.

According to MOH, ongoing surveillance in Singapore shows that the number of attendances at emergency departments and hospital admissions for ARIs and pneumonia has not risen.

The percentage of influenza viruses isolated from patients with flu-like illnesses has also not risen, remaining low at the usual 5 per cent.

Nonetheless, MOH and healthcare institutions will continue to remain vigilant.

Singapore’s peak for ARIs extends to March every year.
 
The ministry reminds Singaporeans to keep a high standard of personal hygiene and avoid crowded places with poor ventilation, especially for those travelling to places experiencing increased influenza activity such as Hong Kong.

MOH advises that there is no need for Singaporeans to rush to get themselves vaccinated against the flu.

However, those in the vulnerable group for influenza complications, such as older adults aged 65 and above, persons with underlying health conditions and young children under five years of age, should undergo routine annual flu vaccinations. Some Singaporeans have nevertheless decided to postpone their trips to Hong Kong.

SA Tours manager (marketing & communications) Ruth Lim said: ‘We have concerned passengers who have postponed their travel plans for this week to next week to observe the situation first.

‘Others are consulting family members on rescheduling travel dates.’

Dynasty Travel manager (marketing communications) Fern Sim said that it had not seen any cancellations.

However, even if there were, Ms Sim explained that full refunds are not likely because neither the Hong Kong or Singapore governments have issued health or travel warnings.

In Hong Kong, the Secretary for Food & Health, York Chow, did announce yesterday that all kindergartens, childcare centres and primary schools would be closed for two weeks.

The statement released by the Hong Kong government added that the flu season has contributed to a 16 per cent increase in admissions to medical wards and a 60-70 per cent increase in paediatric wards.
Source : Business Times - 14 March 2008

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Swiss Life sets up office here, targets wealthy - Singapore

Swiss Life sets up office here, targets wealthy - Singapore

By SIOW LI SEN
SWISS Life will open an office here next month to sell its life insurance products aimed at the wealthy.
 
‘The Asian market offers great growth potential in this attractive segment.’
 
- Bruno Pfister, 
CEO, international, Swiss Life Group 
 
 
 
The Singapore office of Switzerland’s market leader for pension and life insurance products is not just its first in Asia, but also outside Europe.

The branch office, Swiss Life (Liechtenstein), is part of the group’s international strategy to tap into burgeoning Asian markets.

‘We see the potential for Asia, and Singapore is a great hub to tap into this Asian market,’ said company spokeswoman Irene Fischbach.

Swiss Life’s main markets are Switzerland, Germany and France.

The product to be sold in Asia is structured for international high net worth individuals and called private placement life insurance. Created since 2004, it is sold through the group’s Luxembourg and Liechtenstein offices, said Ms Fischbach.

‘It’s a structured life insurance product that combines individual asset management with retirement planning,’ she said.

Clients must have a minimum of 200,000 Swiss francs (S$270,059).
 
Private placement life insurance is currently sold to customers in Sweden, Italy and the US. It has attracted assets under management of nine billion Swiss francs.

The Singapore office will be headed by Thomas Vonrueti, who will lead a team of seven.

Swiss Life cooperates with leading private banks and independent asset managers to sell its products.

Swiss Life Group’s chief executive, international, Bruno Pfister said: ‘The Asian market offers great growth potential in this attractive segment. In Singapore we are ideally positioned to expand into further markets in the region. The new location represents an important addition, enabling us to serve our customers from three competency centres in the future.’

According to Forbes magazine’s 2008 billionaires report, the number of Asian billionaires increased a third to 211 with a total net worth of US$804 billion, up from US$554 billion.

The number of millionaires in Singapore shot up 11,000 people or 21.2 per cent last year - the fastest growth rate in the Asia-Pacific and one of the fastest in the world, said a 2007 Merrill Lynch-Capgemini report.

Source : Straits Times - 14 March 2008

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Private fund buys remaining Singapore 53 Grange Infinite units

Private fund buys remaining Singapore 53 Grange Infinite units

Average price for the units, bought for $400m, is said to be $2,600-$2,700 psf
By KALPANA RASHIWALA
A PRIVATE fund managed by ARA Asset Management group is believed to have bought the remaining 53 units at Chip Eng Seng’s and Citadel’s Grange Infinite freehold condo project for almost $400 million.
 
 
Savills Singapore is believed to have brokered the latest bulk deal. The 68-unit condo is now fully sold.

The average price for typical three and four-bedroom units in the transaction is believed to be about $2,900 per square foot (psf).

However, for all 53 units sold under the deal, the average price is said to be slightly lower, at $2,600-$2,700 psf, as the three penthouses and other larger units included in the transaction were priced lower.

This marks a reversal of the previous trend, which set in around late-2006, of bigger units fetching higher psf prices than smaller ones.

‘Now people are more wary and start to get concerned if the overall purchase quantum reaches a very high level, so the tendency is to pay lower psf prices for bigger units,’ a property consultant said.

Another interesting feature of the bulk sale at Grange Infinite is that it is priced lower than individual units sold earlier in the project.

The initial 15 units in the condo fetched a median price of $3,201 psf in September, according to Urban Redevelopment Authority data.

The 15 apartments were sold at prices ranging from $3,025 to $3,299 psf.

This too marks a reversal of what was happening in December, when a Kuwait Finance House (KFH) unit bought 97 apartments at Guocoland’s Goodwood Residence in the Bukit Timah/Scotts Road area for a median price of $3,200 psf - about 25-30 per cent above the $2,500 psf average price that Sui Generis was fetching at nearby Balmoral Crescent at the time.

GuocoLand said this week that KFH is letting the options on that purchase lapse, but added that the two sides are in talks with ‘a view to a grant of fresh options for units in the development’.

A seasoned market watcher said overseas funds, particularly from Europe and Asia, remain interested in bulk purchases in Singapore condo projects - but only at fair valuations, that is, at a discount to the prices at which the units would be sold to individual investors.

‘Right now, such investors are looking for mid to long-term plays. The mood for short-term play is not so positive,’ said the market watcher.

‘Of course, some developers may not want to sell units at a discount, unless sentiment in the market weakens, like now.’

The 36-storey Grange Infinite condo will come up on the former Grange Tower site next to the Indian High Commission.

The property launch scene has generally been quiet lately, as buyers adopt a wait-and-see approach amid US sub-prime jitters in the stock market.

However, some developers have been quietly releasing projects.

Frasers Centrepoint has sold 30 units at its freehold Martin Place Residences in the Kim Yam Road area since mid-January through private previews.

The 30 units were sold at an average price of about $1,800 psf after discounts.
Source : Straits Times - 14 March 2008

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MMP Reit refinances $220m short-term loans - Singapore

MMP Reit refinances $220m short-term loans - Singapore

By IAN POH

MACQUARIE MEAG Prime Reit (MMP Reit) has refinanced $220 million of short-term loans, $190 million of which are due in May and $30 million in August.
‘In light of the strategic review of MMP Reit announced on Feb 19, the new funding has been arranged to extend the maturity of the facilities until end-September,’ said Macquarie Pacific Star, the manager of MMP Reit. This will allow the review to proceed with flexibility. It also removes the need to incur additional costs to unwind longer-term loans, which may be necessary if there is a transaction arising from the strategic review, said the real estate investment trust (Reit) manager.

In its Feb 19 announcement on the strategic review, the Reit manager said the specific objective is to enhance value for MMP Reit unit-holders. The review includes the possibility of the Macquarie Group selling its stake in the Reit.

The financing renewals have been secured on competitive terms and will not have a material impact on distribution per unit to unit-holders, the Reit manager said, adding that the successful refinancing - a continuation of support for the trust by finance providers - shows the strong credit quality of MMP Reit.

‘MMP Reit’s creditworthiness is supported by the high quality of underlying assets, low gearing, rental reversions, occupancy levels and tenancies,’ said Macquarie Pacific Star chief executive officer Franklin Heng.

MMP Reit recently announced an increase in its net asset value to $1.61 per unit as at Dec 31, 2007. The Reit is trading at a discount to this value, closing yesterday at $1.22.

‘We remain committed to securing the most optimal financing arrangements to maximise returns to unit-holders,’ Mr Heng said yesterday. ‘We will continue to monitor MMP Reit’s funding position throughout the strategic review.’

MMP Reit posted a 15.7 per cent year-on-year rise in distributable income to $16.2 million for the fourth quarter ended Dec 31, 2007.
Source : Straits Times - 14 March 2008

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Hong Kong’s killer flu

Hong Kong’s killer flu 

Victim goes from healthy to dead in 15 days as outbreak brings back bad memories of another killer flu - Sars

By Tracy Quek, China Correspondent 
TAKING PRECAUTIONS: A primary school pupil in Hong Kong getting a temperature check yesterday. Kindergartens and primary schools have been ordered to shut their doors for two weeks.
 
BEIJING - WHEN seven-year-old Law Ho Ming fell ill last month, there was nothing to suggest he was down with anything more serious than the common flu.
The Primary 2 pupil of Ho Yat Tung Primary School in Hong Kong’s western Tuen Mun district had developed the usual flu-like symptoms, including a cough and a mild fever. He was taken to see a family doctor on Feb 24 and stayed home from school.

But the ‘ordinary flu’ fooled everyone.

In just 15 days, the virus robbed Ho Ming’s parents of their chatty, rosy-cheeked child, leaving them distraught and heightening fears of a killer influenza in Hong Kong where at least three other kids have died and dozens of others are unwell with suspected flu.

The three others who died were three-year-old girl Ho Po Yi, 27-month-old boy Or Ho Yeung and a 21-month-old boy whose name was not revealed.

An inquest will be held to investigate the cause of Ho Ming’s death on Tuesday, reported the South China Morning Post.

Hong Kong’s Centre for Health Protection said the boy’s flu had developed into encephalitis (swelling of the brain), but tests were needed to confirm the exact cause of death, the paper said.

The viciousness of the suspected flu bug has brought back dark memories of another outbreak that assailed the city and nearby countries, including Singapore, just five years ago - severe acute respiratory syndrome, or Sars.

Sars victims also displayed the usual flu symptoms, but unlike sufferers of the ordinary flu virus, they deteriorated rapidly after being infected. In many cases, the Sars bug proved fatal.

While the flu bug currently going around in Hong Kong is not Sars, it serves as a reminder that influenza is a ‘nasty disease’, said Mr Peter Cordingley of the World Health Organisation.

‘We often say, ‘Oh, I’ve got a touch of the flu’. But in fact, influenza, when it is full blown, is a nasty disease,’ he told The Straits Times on the phone from Manila.

‘It kills the young and elderly, it kills those who have got underlying medical conditions, so it is a nasty virus and has to be treated seriously.’

A week after Ho Ming’s visit to the family doctor, he was no better. Alarmed that her son was still coughing and running a high fever of about 39 deg C, his mother took him to the Tuen Mun Hospital on March 6.

Tests performed by emergency room doctors, however, found no trace of meningitis or encephalitis. His chest X-ray was also clear. There was no need for a hospital stay, doctors said.

Back home, the boy’s condition took a sudden dive. In two days, Ho Ming was back at the hospital, semi-conscious and suffering from pain in his limbs.

This time, doctors warded him in intensive care, but by then, even their best efforts came too late.

Two days later, on March 10, the boy was declared brain dead, and his parents made the painful decision to take him off life support.

Ho Ming’s father, a construction worker, told the Hong Kong press that the doctors who treated his son had done their best.

‘My son’s sickness worsened very quickly…But I was mentally prepared that my son would not be able to hold out,’ he said. ‘I don’t blame anyone.’

But his wife was inconsolable.

Speaking to Hong Kong’s Ming Pao Daily News, the 48-year-old housewife whose full name was not released said she could not come to terms with Ho Ming’s sudden death.

She described her son as a ‘diligent, obedient boy who never caused her any worry’.

‘In just over 10 days, this virus took the life of a healthy, lively child. It is so vicious. I could not have stopped it even if I tried. I have only one son, why must it be this way?’
Source : Straits Times - 14 March 2008

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Some Singapore Gillman Heights owners fight on for their homes

Some Singapore Gillman Heights owners fight on for their homes 

22 minority owners in bid to overturn sale; they simply don’t want to move

By Joyce Teo, Property Correspondent 
UNITED FRONT: These owners of homes at Gillman Heights showed up in court proudly sporting T-shirts emblazoned with their condo’s name as they remained bent on overturning the collective sale inked last year. — ST PHOTO: SHAHRIYA YAHAYA
 
A GROUP of owners at Gillman Heights Condominium is fighting hard to stop the $548 million sale of the property, despite reports that hint at a market slowdown.
The deal was struck when the market was in full flight in February last year - but now, such deals to sell en bloc have dried up.

The group’s stated reason for opposing the sale? They love their homes.

The owners opposing the sale of the Alexandra Road estate turned up on day one of a High Court appeal yesterday wearing specially-made T-shirts with the condo’s name emblazoned on them.

Said one: ‘We made it for the appeal to show our unity and our love for our home.’

The 22 minority owners are trying to overturn the collective sale of their estate to CapitaLand, Hotel Properties (HPL) and two private funds.

They are appealing on various grounds, including the way the sale process was conducted, how the former HUDC estate’s age was calculated and how the price was achieved.

Three other groups, representing 18 owners, are also in court. One is made up of eight owners from four units who want to know if a supplementary deal to extend the original collective sale agreement is valid. They face legal action from the buyers for alleged breach of contract.

The Strata Titles Board (STB) approved the sale of the 607-unit, 99-year leasehold estate late last year. The sale was inked in February last year at $363 per sq ft (psf) of potential gross floor area.

Owners stand to reap $870,000 to $950,000 per unit - then 40 to 55 per cent above the levels they would have got in an individual sale.

Still, some never wanted to sell. ‘We had no intention to sell,’ said one of the 22 minority owners. ‘The price was never our problem… You can’t find another place like this in Singapore.’

The 46-year-old, who declined to give his name, lives in a 1,880 sq ft unit with his family.

Mr Pang Tee Lian, one of eight owners to sign the first agreement, but not the supplementary one, said: ‘A collective sale means you can get decent proceeds. But it appears to us we would have no choice but to downgrade. And that means moving to a smaller place farther away.’

The 59-year-old did not agree to the supplementary deal as he felt the sale process had not been done properly.

‘The market has quietened down but we don’t just swing with the tide,’ said the general manager of a building facade firm, who also declined to be named. ‘It’s not so much about the money anymore. After this experience, I just want to stay away from collective sales.’

To minority owners, a collective sale is akin to a compulsory acquisition, said Senior Counsel Michael Hwang yesterday. He has been engaged by Tan Chin Hoe & Co to act for the 22 owners.

He argued that before amendments last year to laws governing collective sales, former HUDC estates had not been intended by Parliament to be covered by these laws.

Outside court, a property consultant said the owners may have trouble finding comparable replacement homes, even with the weaker market.

‘Demand for land has weakened, but if you look at individual deals, prices have yet to fall. Owners would be looking at the price they can get and not the price of the land their estate sits on.’

If they sold individually, they would still ‘be able to get the same price or more’.

The hearing continues today.

Source : Straits Times - 14 March 2008

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Food&HotelAsia 2008 expected to generate US$6b in receipts- Singapore

Food&HotelAsia 2008 expected to generate US$6b in receipts- Singapore

By Lee Khai Yan,
SINGAPORE : Buyers from the food and hospitality industry could spend up to US$6 billion when they go shopping at next month’s Food&HotelAsia2008 (FHA2008).

Touted to be the largest international food and hospitality trade show in Asia, the biennial event will be focusing on the importance of food safety this year. It will cover seven exhibition halls at the Singapore Expo.

With the recent spate of food poisoning and food recalls, this year’s exhibition will feature a Food Safety Forum.

“It should not be something that you have to think twice about. It should be ingrained into your businesses that food safety is primary, other than the quality of the food,” said Linda Leong-Quek, Singapore Food Standards Committee, SPRING Singapore.

There will also be a one-day Food Safety Management course on ISO 22000, an international food safety standard.

The certification specifies requirements for a food safety management system and covers all processes along the food chain, from production to consumption. Launched two years ago, the standard aims at harmonising different food safety programmes.

“Across the world, this awareness of (ISO) 22000 is being pushed all the time. And I think at the last FHA, we did have a discussion as well. Each year, you want to keep on reminding people and this awareness will grow. Like all the other ISO programmes, it takes time,” said Leong-Quek.

If more countries adopt this certification, exporters can enjoy savings as only one food certification will then be needed for multiple export destinations.

The event will feature over 3,300 exhibiting companies from over 60 countries.

“They can now find new sources to supply, be it their foods and greens or meat products, or even beverage and drinks. So it’s effectively us creating a one-stop shopping area for importers of food all over Asia,” said Stephen Tan, Chief Executive of Singapore Exhibition Services.

Tan added that alternative sources can have many benefits. He said new sources might mean cheaper food and more efficient delivery methods, which in turn lead to shorter delivery times.

More than 37,000 trade buyers are expected at the four-day event starting April 22.

Sourcing budget is estimated at US$6.1 billion, based on a survey of visitor’s intention to spend at the exhibition. The previous show in 2006 saw a sourcing budget of US$5.9 billion. In terms of tourism receipts, the previous show earned Singapore S$37 million. - CNA /ls
Source : Channel NewsAsia - 14 March 2008

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Positive outlook for global property sector in the medium term-SIngapore

Positive outlook for global property sector in the medium term-SIngapore

By Wong Siew Ying,

SINGAPORE : The sub-prime crisis has intensified the necessary corrections in the property market. But according to Henderson Global Investors, there’s an upside to it.

The asset management firm, which has some $117 billion worth of assets under its wing, is positive on the medium term outlook for the global property sector.

The likelihood of a US recession and the current global credit crisis is hurting investor sentiment, and is expected to have an impact on the property sector in the region.

In its latest report on the global property outlook, Henderson Global Investors noted that price increases are cooling off in Singapore, Hong Kong and China. But office rentals are still expected to climb, albeit at a slower pace.

Over the next 12 months, Henderson said growth will be led by retail properties and retail space. It remains positive on Singapore REITs such as CapitaMall Trust and Ascendas REIT.

“In terms of industrial and retail space, we think these companies (Singapore REITS) can still benefit from very solid rental growth and good yield offered for the unit-holders. Our pick is strong companies such as CMT, CapitaMall and also Acendas REIT. The reason is, the price corrections have offered us very good entry opportunity,” said Frankie Lee, a fund manager with Henderson Global Investors.

On the private residential market, Henderson said caution needs to be exercised in the next two to three years.

It projects some 19,000 apartments to come on stream during that period, and it’s uncertain if demand will be sufficient. For this year, it expects prices of private residential properties to weaken by up to 10 percent.

Henderson is also less positive about the UK property sector, which it expects will underperform other markets.

As for the US market, Henderson projects yields from REITs there to come in at the high single digits. - CNA /ls

Source : Channel NewsAsia - 14 March 2008

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Young investors hope to gain from volatile market- Singapore

Young investors hope to gain from volatile market- Singapore

By Rachel Kelly, 

  
SINGAPORE: For seasoned investors, caution may be the buzz word these days amid uncertainty in the stock market.

But with key regional markets taking a sharp hit this year, market watchers said they are starting to see a growing number of younger investors – aged between 20 and 30 – enter the market, hoping to ride the recent volatility.

Lower prices means that stocks, especially blue chips and big cap counters, are now a lot more affordable than they were three months ago.

Brent Allcock, senior vice president, IPAC, said: “We’ve seen an increase in the number of potential investors, aged 25 to 30, approaching us and asking for ideas as to what they can do in the current markets, and how they might enter into the investment market. They’ve taken a look and are thinking that this is a good time to invest in the market.”

George Kwok, manager, POEMS, PhillipCapital, said: “Generally, there is a possible trend that a lot of young investors are coming into the market.

“We have a POEMS Stock Challenge every year and this is opened to all local universities, and we have seen an increase in the number of participants by about 30 percent. I think the valuations have come to a point that is very reasonable, so the investors are looking at going back into the market.”

Market watchers said one sector that is popular with these young investors is the Singapore property sector. They are also casting their eye on European and other Asian markets.

Mr Allcock said: “Generally speaking, those between 25 and 30 years old have gone through the process of acquisition of material objects, so they may have purchased their plasma TVs or their houses and are now looking at starting an investment portfolio.

“What they have to be very careful about is speculation. The sectors that we are hearing that they are interested in are last year’s flavour of the month, so we have to do a lot of education around that.

“The areas that we are hearing about are the Asian markets and to some degree, the European markets. There is certainly a lot of interest in Singaporean property.

“But what we try to do is to counsel our clients and the people we are speaking with about market cycles, and how they should invest rather than speculate on last year’s flavour of the month.”

Market watchers also noted that budding younger investors are interested in socially responsible investments such as wind and solar energies.
- CNA/so

Source : Channel NewsAsia - 14 March 2008

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