Singapore MAS likely to retain $ policy, or tighten it

Singapore MAS likely to retain $ policy, or tighten it

Currency strategists expect US$ to hit new all-time lows of S$1.32 to S$1.36 by end-2008
By LARRY WEE
(SINGAPORE) In response to strong price pressures at home and abroad, the Monetary Authority of Singapore is expected to maintain its current policy stance for the trade-weighted Singapore dollar or S$NEER, or even tighten it a notch further, when it issues its semi-annual monetary policy statement next month, say currency strategists.
 
 
In its last policy statement on October 10 last year, the MAS left intact its policy of a modest and gradual appreciation of the S$NEER, which has been in place since April 2004, but also decided to ‘increase slightly the slope of the S$NEER policy band’.

In practical terms, currency researchers estimate that this probably raised the annual rate of trend appreciation for the Sing dollar from 2 per cent to closer to 3 per cent currently.

But with price pressures at home and abroad now forcing consumer prices here to 25-year highs in the past two months, there’s a possibility that the MAS may even want to nudge such trend appreciation a notch higher - even if most don’t expect it to re-centre the mid-point of its undisclosed trading bands for the S$NEER, or make any changes to the width of those bands.

CPI readings for the Republic hit 6.6 and 6.5 per cent highs in January and February this year, compared to 4.4 per cent in December last year. And, compared to full-year rises of 1 and 2.1 per cent in 2006 and 2007, the Ministry of Trade and Industry raised its official 2008 forecast for headline CPI to a 4.5 to 5.5 per cent range last month, from an earlier estimate of 3.5 to 4.5 per cent.

Joseph Tan, a senior strategist at Fortis Bank here, sees the local CPI topping out closer to 7 per cent before falling back, but argues that the MAS may well want to raise trend appreciation for S$NEER a touch higher, to a 4 per cent annual rate. In currency terms, this could translate into another new all-time high of S$1.32 vis-a-vis the US dollar by the end of this year.

Explained Mr Tan: ‘I think there’s a real danger that food and energy prices will continue to remain at elevated levels this year; oil prices, for example, may continue to trade above US$100 a barrel even in H2.

‘We also have to remember that price pressures at home are not only coming from the effects of higher GST, but extends to the spillover effects from rising house prices and rentals. I think the MAS will need to check inflation there too - because if the US economy bottoms out later this year, we could well see house prices here shooting up again.’

Barclays Capital’s regional economist Leong Wai Ho concedes that such inflation concerns - and others - have also persuaded him to think in terms of a steady to firmer MAS stance next month.

‘I think it’s no longer just an inflation story, but an issue of cost competitiveness now - which renders policy decision-making even more difficult.’

Mr Leong, who expects the US dollar to finish 2008 closer to S$1.34, pointed to anecdotal evidence such as a Cushman & Wakefield report that Singapore’s office rentals had vaulted 10 notches higher in 2007, to seventh most expensive - surpassing even the rates charged in mid-town Manhattan.

On top of that, he warned, local price pressures have spilled over from the consumer to the production side as well, citing all-time highs in a Q4 2007 URA tender price index.

On balance, however: ‘It’s become less clear that the MAS can tighten further now that external forces have deteriorated faster than expected, due to a rapidly slowing US economy, so we expect them to maintain the current status quo without re-centring or changing the slope of the band,’ said Mr Ho.

Claudio Piron, JP Morgan’s head of Asia forex research, also believes the MAS is likely to retain its current status quo, and his firm is looking for the greenback to finish the year closer to S$1.36 - with risks to the downside of that.

He explained that for the moment, headline inflation remains high, domestic economic conditions are robust in terms of consumer demand and jobs, and external trade hasn’t fallen off a cliff. But should the US slowdown deepen, commodity price pressures could ease later this year.

‘The other thing to point out here is that the S$NEER is somewhat of a blunt tool that may not solve all the price pressure problems - so the authorities here may need to look at some other additional policies to alleviate the pressures faced by those worst-hit by rising prices at home - both on the business and individual level,’ he added.

Since the early 1980s, the MAS has adopted the S$NEER as its main monetary policy tool for offsetting imported price pressures in the very open local economy.

Estimates of the model employed by the MAS to fine-tune the local currency’s international value suggest its current policy of modest and gradual appreciation should translate into trend S$NEER appreciation of approximately 2.5 to 3 per cent per annum - fine-tuned by the local central bank inside estimated trading bands of between 1 and 2 per cent on either side of a gradually rising central value.

Source : Business Times  - 31 March 2008

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Singapore LTA to consider returning cash for scrapped cars

Singapore LTA to consider returning cash for scrapped cars 

Policy change may help people switch to public transport, says Transport Minister

By Christopher Tan, Senior Correspondent 

FOR years, the answer has been no.

Now Transport Minister Raymond Lim wants to know if it can be yes.

He has asked the Land Transport Authority (LTA) to see if motorists can get back cash when they scrap their cars.

By scrutinising this sacred cow, he is showing how serious he is about finding ways to persuade people to give up their cars.

He hopes that some who get their money back - and the amount could run to thousands of dollars per motorist - would choose not to buy a new car and switch to public transport instead.

Since 2003, around 80,000 passenger cars have been scrapped each year before turning 10 years old, with the Government refunding the so-called unused portions of the Additional Registration Fee and Certificate of Entitlement.
People have been known to scrap cars as new as two years old, though most do so only after the vehicles turn five years old.

At present, the refunds come as paper rebates which can be used only to buy another vehicle.

Given the number of vehicles scrapped and the youthfulness of many of the vehicles, a change in policy could see the Government refunding $2 billion each year.

Mr Lim said that the LTA would work with the Finance Ministry to see if the change could be made.

‘You have to look at our overall objective - to have a decisive shift towards public transport,’ he said. ‘So we should look at whether we can have any incentive to help people make the shift.’

He was speaking at the launch of the Land Transport Masterplan, a 101-page paper outlining the Land Transport Review which he announced in January. It called for an overhaul of the bus and train systems as well as major changes aimed at car owners.

‘As I said when we launched the Land Transport Review, we will leave no stone unturned,’ he said. ‘So this is one more stone that I’m turning up to have a look at, to see if it can be done.’

Motorists have long asked for rebates to be paid in cash, but the answer always been no. The reason usually given: The rebate is a discount on taxes paid upfront and not meant as a cash refund.

Mr Lim expects a decision on the change within six months.

Among motorists who welcomed the possible change was engineer Shreejit Changaroth, 51, who said: ‘I know people with old cars who are not scrapping them simply because they can’t use the rebates for anything else but to buy another car.’

Motor traders however, may lose a source of income, because they rake in a significant amount from trading the rebates between those who scrap and those who buy cars.

Mr Raymond Tang, managing director of used car trader Yong Lee Seng, said that this has been a ‘business opportunity’ for traders for years.

Singapore Vehicle Traders Association president Neo Nam Heng said that cash rebates would be ‘fair to car owners’, but the impact on traders would be clear only when details are out.
Keeping vehicles young
SINCE 1975, Singapore has aimed to keep the age of vehicles on the road down, to avoid jams caused by breakdowns.
So every new car has an initial 10-year lifespan. If it is scrapped before it turns 10, the owner gets back part of the taxes already paid.

At present, the refund can be used only to offset taxes when buying another car.

Anyone who does not want to buy another car can sell the rebate to motor traders, who usually take a cut of up to 10 per cent.
Source : Straits Times  - 31 March 2008

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SM Goh says Singapore has balanced political self-renewal system

SM Goh says Singapore has balanced political self-renewal system

By S Ramesh, 

SINGAPORE: Senior Minister Goh Chok Tong has described Singapore’s political self-renewal system as well-balanced, with a good mix of very experienced ministers and new ones who have been gradually tested.

However, Mr Goh said he does not see the need for a third deputy prime minister for Singapore presently.

Prime Minister Lee Hsien Loong announced several changes to his Cabinet on Saturday, including the appointment of top lawyer and Sembawang GRC MP K Shanmugam as law minister and second minister for home affairs.

He takes over from Deputy Prime Minister S Jayakumar at the Law Ministry.

Mr Lee also announced several promotions to senior minister of state and moved Manpower Minister Dr Ng Eng Hen to the Ministry of Education following Minister Tharman Shanmugaratnam’s relinquishment of the post to concentrate on the Finance Ministry.

Speaking to the media at the Kaki Bukit Town Carnival on Sunday, Mr Goh also emphasised the need to pay competitive salaries in order to attract the best talent from the private sector to join the government.

He explained that while the private sector is very challenging, entrepreneurial, and gives individuals the freedom to do what they want to advance their personal interest; in public service, people and the country come first.

“If the political leaders and civil servants are not well-paid, we don’t attract the best into the public service, the best will go into the private sector,” said the senior minister.

Kaki Bukit grassroots leaders have been sharing their views on the latest changes to Singapore’s Cabinet with Mr Goh and Dr Muhammad Faishal Ibrahim.

Dr Faishal said: “It’s a very systematic and careful approach of leadership renewal. This is very good for Singapore because our ministers are very important as they pursue the directions for Singapore, and with such an approach, I have spoken to the grassroots leaders and they feel reassured of Singapore’s future.”

Political watchers and some Singaporeans have observed that no woman has been appointed to the Cabinet and no Malay MP has been promoted. Mr Goh said Singapore’s system is not based on gender or race but the suitability of individuals for the ministries.

But he added that he believes it is a matter of time before a woman minister is appointed.

“Both Lim Hwee Hua and Grace Fu attend Cabinet meetings. So even though they may not be full ministers, they can give their views quite freely. In that sense, women are represented in Cabinet,” said Mr Goh.

Turning to the appointment of a second minister for home affairs, Mr Goh explained that the Law Ministry does not stretch Mr Shanmugam.

He said it is usual that the law minister is given another appointment and he feels it is very good for Mr Shanmugam to have actual experience on how law impacts society.

In an email response, Law Society President Michael Hwang said he expects the close relationship with the lawyers’ body and the government to continue under the new law minister.
- CNA/ac/so
Source : Channel NewsAsia  - 31 March 2008

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Former F1 world champion Hakkinen zooms into S’pore

Former F1 world champion Hakkinen zooms into S’pore

By Patwant Singh,
SINGAPORE: Once again, Singaporeans got an up-close experience of the power of a Formula One car at the Padang on Sunday. This is the second of such demonstration after Red Bull brought their car for the Chingay Parade earlier this year.

And showing the capabilities of the McLaren Mercedes MP4-22 was a man who twice lifted the F1 World Championship trophy, Mika Hakkinen.

The Finn hit about 150km to 180km in the car, over a 400-metre stretch of St Andrew’s Road.

The performance was also part of the “Never Drink and Drive” campaign by Johnnie Walker, one of the sponsors of the F1 team. Hakkinen is the Global Responsible Drinking Ambassador of the campaign.

Still on the issue of safety, the former McLaren driver, was concerned about the lighting for the upcoming Singapore F1 night race.

Hakkinen said: “The organisers should not make any kind of compromises in lighting. They should think of every possible angle simply because Singapore is hosting the Grand Prix for the first time. The whole world is watching the first night race with high interest.”

He added that drivers would find it harder to drive at night as they would be less physically alert.

Some McLaren technical crew witnessed the lighting demonstration conducted on Saturday by the Singapore race organisers.

Their latest trip to Singapore also helped them to gather valuable information about the Singapore circuit.

Neil Trundle, Special Projects, McLaren Racing, said: “We have taken the opportunity to take photos around the track and when we get back to England, we are going to put this on our simulator.”
- CNA/so
 
Source : Channel NewsAsia  - 31 March 2008

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For Rent - Citylights - District 08 -Singapore Apartment Condo Listing- 31.03.2008

For Rent - Citylights - District 08 -Singapore Apartment Condo Listing- 31.03.2008

TY : [C]ondo [D]uplex [H]iRise [L]oRise [T]ownHse [P]enthse [W]alkUp [M]asionette

TNR=Tenure, DT=District, BDRM=Bedroom, AREA=Built-In, STR=Storey, Price $K=In Thousand

Price are subject to changes , please call (+65) 91002985 for lastest update
Type — C
District — 8
Estate — CITYLIGHTS, BLK 80 #04
Area — 1300
Bedroom — 3
PSF — 5.77
Price$ — 7500
Type — C
District — 8
Estate — CITYLIGHTS, BLK 80 #06
Area — 1313
Bedroom — 3
PSF — 0
Price$ — 0
Type — C
District — 8
Estate — CITYLIGHTS, BLK 80 #34
Area — 1356
Bedroom — 3
PSF — 0
Price$ — 0
Type — C
District — 8
Estate — CITYLIGHTS, BLK 86 #08
Area — 689
Bedroom — 1
PSF — 6.53
Price$ — 4500
Type — C
District — 8
Estate — CITYLIGHTS, BLK 86 #16
Area — 560
Bedroom — 1
PSF — 8.93
Price$ — 5000
Type — C
District — 8
Estate — CITYLIGHTS, BLK 86 #31
Area — 560
Bedroom — 1
PSF — 7.14
Price$ — 4000
Type — C
District — 8
Estate — CITYLIGHTS, BLK 88 #28
Area — 721
Bedroom — 1
PSF — 0
Price$ — 0
Type — C
District — 8
Estate — CITYLIGHTS, BLK 88 #31
Area — 560
Bedroom — 1
PSF — 8.93
Price$ — 5000
Type — C
District — 8
Estate — CITYLIGHTS, BLK 88 #39
Area — 1900
Bedroom — 4
PSF — 0
Price$ — 0
Type — C
District — 8
Estate — CITYLIGHTS, BLK 90 #09
Area — 926
Bedroom — 2
PSF — 5.08
Price$ — 4700
Type — C
District — 8
Estate — CITYLIGHTS, BLK 90 #14
Area — 893
Bedroom — 2
PSF — 5.04
Price$ — 4500
Type — C
District — 8
Estate — CITYLIGHTS, BLK 90 #29
Area — 560
Bedroom — 1
PSF — 6.43
Price$ — 3600
Type — C
District — 8
Estate — CITYLIGHTS, BLK 90 #30
Area — 904
Bedroom — 2
PSF — 6.08
Price$ — 5500
Real estate in Singapore - property of Singapore, Buy, sales, rents, investment,

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For Rent - Icon - District 02 Singapore Apartment Condo Listing- 31.03.2008

For Rent - Icon - District 02 Singapore Apartment Condo Listing- 31.03.2008

TY : [C]ondo [D]uplex [H]iRise [L]oRise [T]ownHse [P]enthse [W]alkUp [M]asionette

TNR=Tenure, DT=District, BDRM=Bedroom, AREA=Built-In, STR=Storey, Price $K=In Thousand

Price are subject to changes , please call (+65) 91002985 for lastest update

Type — C
District — 2
Estate — ICON, #07
Area — 657
Bedroom — 1
PSF — 8.07
Price$ — 5300
Type — C
District — 2
Estate — ICON, #09
Area — 786
Bedroom — 1
PSF — 5.73
Price$ — 4500
Type — C
District — 2
Estate — ICON, #09
Area — 657
Bedroom — 1
PSF — 8.07
Price$ — 5300
Type — C
District — 2
Estate — ICON, #11
Area — 785
Bedroom — 1
PSF — 7.64
Price$ — 6000
Type — C
District — 2
Estate — ICON, #11
Area — 657
Bedroom — 1
PSF — 8.07
Price$ — 5300
Type — C
District — 2
Estate — ICON, #12
Area — 561
Bedroom — 1
PSF — 8.02
Price$ — 4500
Type — C
District — 2
Estate — ICON, #13
Area — 657
Bedroom — 1
PSF — 7.61
Price$ — 5000
Type — C
District — 2
Estate — ICON, #18
Area — 915
Bedroom — 2
PSF — 7.1
Price$ — 6500
Type — C
District — 2
Estate — ICON, #20
Area — 936
Bedroom — 2
PSF — 6.41
Price$ — 6000
Type — C
District — 2
Estate — ICON, #20
Area — 915
Bedroom — 2
PSF — 7.1
Price$ — 6500
Type — C
District — 2
Estate — ICON, #22
Area — 570
Bedroom — 1
PSF — 0
Price$ — 0
Type — C
District — 2
Estate — ICON, #23
Area — 700
Bedroom — 1
PSF — 6.71
Price$ — 4700
Type — C
District — 2
Estate — ICON, #23
Area — 700
Bedroom — 1
PSF — 8.57
Price$ — 6000
Type — C
District — 2
Estate — ICON, #24
Area — 560
Bedroom — 1
PSF — 10.71
Price$ — 6000
Type — C
District — 2
Estate — ICON, #25
Area — 786
Bedroom — 1
PSF — 7.63
Price$ — 6000
Type — C
District — 2
Estate — ICON, #28
Area — 570
Bedroom — 1
PSF — 0
Price$ — 0
Type — C
District — 2
Estate — ICON, #36
Area — 926
Bedroom — 2
PSF — 6.48
Price$ — 6000
Type — C
District — 2
Estate — ICON, #38
Area — 1259
Bedroom — 2
PSF — 5.56
Price$ — 7000
Type — C
District — 2
Estate — ICON, #40
Area — 1044
Bedroom — 2
PSF — 8.14
Price$ — 8500

Real estate in Singapore - property of Singapore, Buy, sales, rents, investment,

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Rental for warehouse Defu area 31-03-08

Rental for warehouse Defu area 31-03-08

35,000sqft Open Space Asking $0.90psf.
8000-10000sqft single storey, Can be used as car workshop & repair Asking $1.80psf
Warehouse Asking $1.70psf

1 or 2 yrs lease

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Factory for Rent , 2 Storey @ Chin Bee Rd -31-08-08

Factory for Rent , 2 Storey @ Chin Bee Rd

Total Rented Area = 16,217sqft
High Ceiling
Ground floor, Warehouse cum office 13,258sqft
2nd floor, 2959sqft.

Rental $1.50psf for 2yrs lease
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Mindy Yong

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