Singapore New Master Plan expected to see selective changes

Singapore New Master Plan expected to see selective changes

Key sectors seen benefiting include hotels, aerospace, healthcare, transport
By KALPANA RASHIWALA
URBAN Redevelopment Authority’s Master Plan 2008 - which will be exhibited soon - will see changes in land use and increases in plot ratios, but these will be selective and focused on growth areas, rather than a widespread upgrade in densities, DBS Vickers Securities said in a report dated yesterday.
The strategic initiatives from the Master Plan will filter down to improved growth fundamentals for various economic sectors. While the property sector will be a key and obvious beneficiary, also standing to benefit from the strategic outline are the hotels, aerospace, healthcare, transport and construction sectors, the report said.

More land will be provided for development of the aerospace industry and the establishment of a designated hub near Seletar Airport will continue to provide strong fundamentals for the sector’s continued growth. For the healthcare sector, DBS Vickers sees a medical hub developing around the Novena area and ‘we could see rezoning of land parcels in this area to facilitate the development of this medical hub’.

It also suggests plot ratio increases in some mature HDB estates, as part of the rejuvenation plan. With Jurong and Paya Lebar earmarked as new business hubs outside the CBD, ‘we are likely to see a concentration of Government Land Sale projects in these two areas in the medium term’.

Noting that the authorities have revealed plans for new residential enclaves such as the area around Marina South Gardens and Kallang Basin, it said, ‘we expect rezoning and plot ratio adjustments in these areas’.

‘We expect much of the key significant land use and plot ratio changes to be concentrated in certain strategic areas - Seletar (aerospace industrial use), Jurong (new regional centre), Paya Lebar (commercial hub near city fringe), Marina Bay (white sites and residential), Novena (medical and healthcare), Kallang Basin (residential) and Ophir-Rochor (mixed development).’

The report added: ‘With the phased opening of the Circle Line from 2009 onwards, we also expect to see an increase in plot ratios for undeveloped state land sites that are close to Circle Line MRT stations, and in particular those that intersect with existing MRT stations.’

‘With interchange stations planned at Paya Lebar, Serangoon, Bishan, Buona Vista, Harbourfront and Dhoby Ghaut, we believe that the highest potential for plot ratio changes could come at the Paya Lebar and Serangoon stations, given that the area around the remaining interchange stations are already relatively built up,’ DBS Vickers said.

Source : Business Times - 06 May 2008

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JLL re-entering housing project sales business - Singapore

JLL re-entering housing project sales business - Singapore

By KALPANA RASHIWALA

JONES Lang LaSalle (JLL) is poised to re-enter the Singapore residential project sales business after a hiatus of about seven years.
It has clinched appointments to market Floridian, a 336-unit freehold condo development in Bukit Timah by Far East Organization and Wing Tai Holdings, as well as Lippo’s Centennia Suites at Kim Seng Road.

It is also marketing 34 units at the completed 99-year leasehold Amaryllis Ville condo in the Newton area on behalf of Goodearth Hotel group of Australia. Goodearth - controlled by the family of the late Teo Lay Swee, who used to own the Cockpit Hotel site - bought the 34 units from the project’s developer, Wing Tai, about two years ago and is expected to sell the units for about $1,500 per square foot (psf).

JLL will focus on the upper end of the Singapore residential market, rather than the mass market. ‘As well as marketing Singapore residential projects here, we’ll market them through our international office network,’ JLL managing director (Southeast Asia) Chris Fossick said in a recent interview with BT.

‘I believe that with an increasing number of overseas buyers in the local market, the benefits of an international marketing campaign will grow in importance. We believe we can stay ahead of the game because we already have successful residential project sales businesses in Hong Kong, Jakarta and London, and a large presence in India, China, Korea, Japan and the UAE - we can mine our database of international investors in these places when marketing Singapore residential properties.’
‘Fundamentals for Singapore and Asia remain very strong. But we’re being somewhat sidetracked by the goings-on in the world credit market.’
 
- Chris Fossick 
 
 
 
 
‘We believe the proportion of foreign buying in the Singapore housing market will continue to increase. Singapore is a destination for people to want to be in; it’s becoming an exciting place,’ Mr Fossick added.

He views the current slowdown in housing sales here as a temporary thing, ‘driven by sentiment, not fundamentals’.

‘The fundamentals for Singapore and Asia remain very strong. But we’re being somewhat sidetracked by the goings-on in the world credit market.’

The property consulting group will also step up investment sales of Singapore residential properties - for instance, by matching foreign property funds/ institutional investors with local developers buying land for housing projects here, or helping these investors purchase stacks of apartments in new projects.

‘The other idea we have for our residential business is to help Singaporeans who want to diversify into overseas property investments. The UK market, for instance, has been so high for so long and the currency so strong, we feel that for the last five years, UK has not been overly attractive. But that could change over the next 12 months.

‘The pound has been coming off against the Sing dollar. But I think UK home prices have to come down further, but may be in 12 months, UK property might start looking reasonably attractive.’

Helping JLL achieve some of its new business plans is Julian Sedgwick, who joined as a local director in JLL Singapore’s residential investments department earlier this year. He used to work with Chesterton London, where he marketed homes and condos in Central London.

‘He brings an international flavour, and some new ideas on how they do project sales in London versus how we do it here. He will be quite helpful to Jacqueline Wong, who heads our Singapore residential business,’ Mr Fossick said.

In a separate development, JLL regional director and head of investments Lui Seng Fatt is leaving the group. Mr Fossick confirmed Mr Lui’s departure. ‘He made a decision to move on. We’re grateful for his contributions in the success of our investment business and wish him the best on his new ventures,’ he added. Mr Lui, who is overseas, could not be reached for comment.

Meanwhile, Mr Fossick is expected to oversee the investments department. ‘We’ve got a big team; we might as well find somebody within that team to take the helm.’
Source : Business Times   - 06 May 2008

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Low interest rates not likely to help housing

Low interest rates not likely to help housing

Income growth a better driver of housing price trends: Citi
By ARTHUR SIM

LOW or negative real interest rates are often cited as one factor supporting housing prices. But Citi believes that in today’s market, negative real interest rates will at best be a ‘cushion’ in the near term.
 
Optimistic view: Negative or low interest rates may eventually prove ’supportive of housing demand’ if they coincide with a rebound in incomes and sentiment that many expect with the launch of the integrated resorts, according to Citi 
In a report on the Singapore market, Citi analyst and vice-president (Asia Pacific Economics & Market Analysis) Kit Wei Zheng said: ‘Negative real interest rates, in and of themselves, are unlikely to be sufficient to drive housing prices, especially if income growth and sentiment are weak.’

In his analysis of property prices and real interest rates, Mr Kit noted that while a correlation was ‘maintained’ during the Asian financial crisis, this correlation broke down during the 2001 recession.

‘Between 2001 and mid-2004, property prices continued to fall even as real interest rates fell and eventually turned negative,’ he said. He also pointed out that between mid-2004 and 2007, property prices soared despite rising real interest rates.

‘Finally, property price inflation has moderated in the past two quarters, despite increasingly negative real interest rates,’ he added. Mr Kit believes income growth probably has a ’stronger explanatory power in explaining housing price trends’.

He noted that a strong labour market not only improves housing affordability but lifts rental demand from foreigners, thereby increasing rental yields and the attractiveness of residential property as an investment.

Citing the Monetary Authority of Singapore’s Macro-economic Review, he also noted that on average, the boost to asset prices from a one percentage point fall in foreign interest rates - which would affect domestic interest rates - is less than half of the income effect from a positive one per cent foreign demand shock.

The bad news, however, is that Mr Kit believes employment growth here may have peaked. ‘Total employment growth will likely fall short of the record 238,000 jobs created last year, more likely in the range of 120,000-150,000, with attendant slowdown in payroll growth,’ he said.

Nevertheless, Citi is ‘not inclined to be overly bearish and do not anticipate a collapse’ in the property market.

Negative or low interest rates may eventually prove ’supportive of housing demand’ if they coincide with a rebound in incomes and sentiment that many expect with the launch of the integrated resorts.

Mr Kit also believes that official figures for new housing supply could be over-estimated. He said that in the context of ‘heightened construction bottlenecks and spiralling material costs, actual supply in 2009 and 2010 will more likely be in the range of 18,000-19,000 units’, less than two-thirds of the 30,296 projected.

Also on the optimistic side, he said a recent MAS survey showing a fall of the value of mortgages in negative equity suggests that households ‘remain flush with cash’.

Affordability is also in check. For example, Mr Kit said the median price of a 110 sq m condo is about 23 times the average annual wage per person, which is still below the 25 times in 2000 and more than 33 times before the 1996 bust.
Source : Business Times   - 06 May 2008

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More keen to marry, have 2 or 3 children - Singapore

More keen to marry, have 2 or 3 children - Singapore
MORE singles in Singapore intend to marry, and more married couples are seeking to have two or three children, according to the Marriage and Parenthood (M&P) Study commissioned by the Ministry of Community Development, Youth and Sports.
The survey, completed last year, found that 85 per cent of single respondents wished to marry in future. This was an 11 percentage point jump from the 74 per cent recorded in a similar 2004 survey.

In addition, almost eight in 10 married respondents wanted two or three children. This was an increase from the 2004 survey where slightly more than six in 10 wanted the same number of children.

Housing was an important consideration for single respondents who planned to marry their current partners. The majority - 89 per cent - preferred to live together in their own homes after marriage, and almost a third of them would postpone their wedding if they were unable to have a place of their own.

Consistent with 2004 results, financial security continued to be respondents’ biggest concern in deciding on the number of children to have.

Over 80 per cent of single and 60 per cent of married female respondents wished to continue working after having one child or more, in line with findings from the last survey.
 
According to 83 per cent of respondents, the current marriage and parenthood package had created a more family-friendly environment conducive for having and raising children.

Among the various measures, the baby bonus and extended paid maternity leave schemes had the most impact in persuading respondents to have more children and to have them earlier.

A total of 3,015 single and 3,006 married Singapore residents were surveyed for the 2007 M&P study, which seeks to understand attitudes and perceptions towards marriage and parenthood.
Source : Business Times   - 06 May 2008

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Singapore Two industrial sites, good class bungalow up for sale

Singapore Two industrial sites, good class bungalow up for sale

By ARTHUR SIM
TWO freehold industrial sites - at 18 Howard Road and 27 New Industrial Road, in the north-eastern part of Singapore - are for sale by tender at indicative prices of $30 million ($272 per sq ft per plot ratio) and $14 million ($278 psf ppr) respectively.
Charles Hoon, director of investment properties at marketing agent CB Richard Ellis, said the sites are zoned Business 1 under Master Plan 2003. This means 40 per cent of gross floor area can be used for purposes such as offices, showrooms or workers’ dormitories.

‘While industrial capital values and rents have recovered, industrial space still presents an attractive option, compared with office space, for businesses to relocate their backroom operations.’

The two sites are conveniently located and of regular shape, he said. And their freehold tenure is an ‘added advantage’.

The 18 Howard Road site is a 44,000 sq ft vacant plot in Macpherson Industrial Estate. The 20,000 sq ft 27 New Industrial Road is in the New Industrial Road cluster.

Separately, DTZ Debenham Tie Leung is marketing a 999-leasehold Good Class Bungalow (GCB) site in Yarwood Avenue. The 69,540 sq ft site, close to Binjai Park, has been put up for sale through an expression-of-interest exercise at an indicative price of $750-$800 psf.
 
According to DTZ, it has redevelopment potential to accommodate four GCBs. It now houses a single storey detached house with an outhouse, swimming pool and tennis court.

Shaun Poh, DTZ’s senior director for investment advisory services and auction, said: ‘This is a rarely available large plot of land in a prime location, offering a myriad of possibilities.’

Recent transactions of GCB land in the area include sites on Kilburn Estate for around $860 psf and Binjai Park for around $850 psf, he said.

Source : Business Times   - 06 May 2008

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Lanxess moves Asian marketing HQ to Singapore

Lanxess moves Asian marketing HQ to Singapore

Cites country’s IT and port capacity, stability, location
By RONNIE LIM

GERMANY’S Lanxess - which is investing 400 million euros (S$845 million) in a mega chemicals plant on Jurong Island - is relocating its Asian marketing headquarters for leather chemicals, including key personnel, from Hong Kong to Singapore from this July.
The move - announced simultaneously in Singapore and at its Leverkusen HQ yesterday - may be the forerunner of more of its regional business units being headquartered here in the future.

This is significant given Asia’s ever-increasing importance to the German chemicals group. Asia accounts for 18.4 per cent of its total sales of 6.6 billion euros last year, up from 14.6 per cent in 2004. China is also the third biggest market worldwide for Lanxess.

In an interview with BT last month, Lanxess chairman Axel Heitmann hinted at even bigger plans for the Republic, when he said that ‘Singapore will become an important new manufacturing hub’, taking on even more manufacturing projects here for the group, including possibly advanced intermediates and specialty chemicals.

This follows Lanxess’s move in February, after an extensive global search, to site its largest-ever investment so far - the 400 million-euro state-of-the-art synthetic rubber manufacturing facility - in the Republic.

Sixty per cent of the capacity of the Singapore butyl rubber plant, which will be operational in 2011, will be reserved for the Chinese market, Mr Heitmann indicated.
 
On the shift of its Asian leather chemicals HQ to Singapore, Lanxess said that the Republic will be ‘where the relevant logistics processes for the Chinese market will also be handled’.

‘This means that in future, order handling and distribution of the leather business unit for the entire Asia region will be controlled for the most part from the ‘hub of Asia’, the last apparently a reference to Singapore’s increasing significance.

Leather chemicals are essentially synthetic tanning materials used by the shoe, furniture and automotive sectors.

Under the HQ move, top personnel in its leather business unit, including Frank Paus, head of global marketing, and Jurgen Hackenbroich, marketing head for Asia-Pacific, will be relocated here. The company said that it will also consider hiring more staff for the HQ operations.

‘By pooling our sales and logistics activities for the Asian market at our Singapore site, we can optimise processes and transport,’ Mr Paus said of the current Singapore sales office which is responsible for the marketing activities of most of its business units in South-east Asia.

‘Singapore is already the largest and most efficient distribution hub for leather chemicals in Asia, and in future, it will be our most important sales location worldwide,’ he added.

‘The ready availability of information technology ensures that we can conduct our business efficiently. Other deciding factors (for the HQ relocation) are Singapore’s stability and its excellent geographical situation,’ said Mr Hackenbroich.

A further advantage is the port here, which has the shortest turnaround times worldwide, and also a huge cargo handling capacity, he added.
Source : Business Times   - 06 May 2008

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More foreigners needed for service jobs: SHRI

More foreigners needed for service jobs: SHRI

By LEE U-WEN
IT is unrealistic to expect companies here to give jobs only to locals - for the simple reason that there aren’t enough of them to fill the vacancies, a human resource chief said yesterday.
 
Mdm Ho: Locals and foreigners should look at one another as team members 
Singapore Human Resources Institute (SHRI) president Ho Geok Choo called on the government to step up efforts to bring in more foreigners - especially in the services industry, where the manpower crunch is most keenly felt right now.

Speaking to reporters at the annual Singapore HR Congress and Business-Connect Expo, Madam Ho said it will ‘take time’ to instill a service culture in Singaporeans. While that happens, the government can help by bringing in more foreign talent.

‘In very populous countries like China and Vietnam, there are people looking to level themselves up, and they will look at opportunities in Singapore,’ she said. ‘With the integrated resorts (IRs) coming up, we are going to need a lot of service staff - and there are not enough Singaporeans, even if you tap housewives and mature workers.’

Mdm Ho, who is also a Member of Parliament for West Coast GRC, said the fear among Singaporeans that foreigners will take their jobs is ‘unnecessary’.

At last week’s May Day Rally, Prime Minister Lee Hsien Loong said foreigners are not here to steal jobs from locals but rather to help grow the economic pie. Foreigners make up 30 per cent of Singapore’s workforce - a figure that has remained unchanged for years. But there has been a surge in absolute numbers as more have come here to fill jobs created in record numbers in 2007.

To allay the fears of locals, SHRI is proposing that a tripartite dialogue - involving key public agencies, the private sector and the local workforce - be organised soon.

‘Locals and foreigners should not look at one another as competitors, but as team members trying to accomplish goals together. This ought to be the real talking point going forward,’ said Mdm Ho.

Earlier during the congress opening ceremony, Minister of State for Trade and Industry Lee Yi Shyan said the government is committed to helping companies that are struggling with a talent shortage.

He urged employers to tap the pool of 142,000 economically inactive residents in Singapore, such as housewives and the elderly, who would be willing to take up flexible jobs in the next two years. As the government tries to grow the size of the local workforce, its economic agencies are constantly in talks with educational institutions to find out the specific skill sets required by companies today, Mr Lee said.

Mdm Ho, meanwhile, said the growing dependence on foreigners is partly due to the ‘inevitability’ of Singaporeans wanting to head overseas to work.

‘Nowadays, our people are exposed to information readily available online, and when they read about the excitement that’s happening in other parts of the world, they are inclined to go out and try something new,’ she said. ‘It’s a very natural process, and helps them gain experience and different perspectives.’

Still, she advised employers to do their part to retain their best talent - or risk losing it to competitors.

Source : Business Times   - 06 May 2008

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Singapore salaries stabilise; pay range broadens: survey

Singapore salaries stabilise; pay range broadens: survey

Senior managers with specialised skills still command higher starting pay
By CHUANG PECK MING

PAY for various jobs across industries in Singapore has stabilised and salary ranges have broadened, a survey by executive search firm Kelly Services has found.
But more job titles are being created, and senior management staff with professional and technical skills still command higher starting pay, according to the Kelly Services Singapore Salary Handbook 2008/09.

For instance, an engineering director can expect a 10 per cent hike from last year’s minimum pay, while analyst programmers and software engineers with a degree or diploma and two to five years of relevant experience are tipped to see a 15-20 per cent jump in minimum salary.

‘Companies continue to find it a challenge to acquire professional and technical talent, especially people with specific skills or industry knowledge, resulting in talent in these fields being able to command a higher salary than other professions,’ said Dhirendra Shantilal, Kelly Services’ senior vice-president for the Asia-Pacific.

The floor salary for an engineering director with a PhD, MSc or MBA degree in the engineering and technical sector is $11,000 a month - and he can make up to $15,000.

Only the maximum pay of a chief scientific officer with a PhD in the healthcare and life sciences sector can match that figure, although his minimum pay of $10,000 is lower than that for an engineering director.
 
But the peak earnings of the engineering director and chief scientific officer are still lower than those of a regional sales director and country manager in the IT industry.

A country manager in the IT business earns up to $18,000 a month, while a regional sales director can get up to $20,000 - the highest compensation in Kelly’s compilation, which also covers jobs in banking and finance, call centres, human resources, logistics and warehousing, office support and sales, marketing and advertising.

In the banking and finance industry, where hiring slowed at end-2007 and early this year, base salaries are expected to remain stable, even though recruitment is projected to pick up for the rest of 2008, Kelly says in its latest salary handbook.

The industry has the lowest minimum pay - $1,300, for a bank teller - in the handbook. Its highest pay - $8,500 tops, for a finance manager with six to seven years’ experience - is below that of the top earner in a call centre. A manager or head with three to four years’ experience in a call centre earns a maximum of $10,000.

Kelly says the broadening of the salary range is seen more in human resources, office support, marketing and advertising jobs.

‘Companies are still looking to hire but they are cautious in raising entry level salaries,’ Mr Shantilal said. ‘For some positions, the salary range has broadened, which provides employees with a greater opportunity to take on new responsibilities and be rewarded for their effort through a raise.’
Source : Business Times   - 06 May 2008

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Yahoo shares dive after Microsoft yanks US$47.5b bid - SAN FRANCISCO

Yahoo shares dive after Microsoft yanks US$47.5b bid - SAN FRANCISCO

Google-Yahoo talks begin, but any alliance could face antitrust hurdles
(SAN FRANCISCO) Yahoo shares fell 17 per cent in early trading yesterday as hopes for the once-dominant search engine dimmed following Microsoft’s withdrawal of a US$47.5 billion takeover bid.
 
Mr Yang: He may only have a few months to show that his rebuff of Microsoft was a smart move 
Analysts believe Yahoo’s stock price will surrender most, perhaps all, of its 50 per cent gain since Microsoft made its initial offer on Jan 31 in an effort to challenge online advertising and search leader Google. The anticipated sell-off would leave Yahoo’s market value hovering around US$30 billion.

Last-ditch talks between Yahoo and Microsoft were fruitless, leading Microsoft to walk away from a deal on Saturday.

In early trading yesterday, Yahoo shares fell 17.2 per cent to US$23.73, below Friday’s close of US$28.67, when investors were still hopeful about a deal.

Microsoft shares rose 2.3 per cent, or 66 cents, to US$29.30. The shares had declined 10 per cent to US$29.24 since the bid, reflecting concerns that the proposed marriage would turn into a complicated mess that would enable Google to grow even stronger.
‘I am not even sure if Yahoo cares about its shareholders because they didn’t show much regard for shareholders’ best interests in this process.’
 
- Darren Chervitz, 
Jacob Internet Fund 
 
 
 
Shares in Google went up 2.3 per cent, or US$13.06, to US$594.35. The company not only averted a marriage it had fiercely objected but also began discussions that could lead to a long-term advertising partnership with Yahoo, a deal made more likely with Microsoft’s withdrawal. Any Google-Yahoo alliance, though, would likely face antitrust hurdles.

Yahoo CEO Jerry Yang remained convinced that the company he started in a Silicon Valley trailer 14 years ago was worth more than the money Microsoft had offered for the Internet pioneer.

Now he may only have a few months to convince Wall Street that his rebuff of Microsoft’s takeover bid was a smart move - and if he can’t, analysts won’t be surprised if Mr Yang is either replaced as CEO or forced to consider accepting a lower offer if Microsoft comes knocking at his door again.

‘This squarely puts the pressure on Jerry Yang to deliver results and shareholder value,’ Standard & Poor’s equity analyst Scott Kessler said. ‘You are going to see a lot of shareholders just throwing in the towel because they are going to realise it’s going to take awhile for the stock to get back to where it was Friday.’

Yahoo shares finished last week at US$28.67, slightly less than the US$29.40 per share that Microsoft was offering before chief executive Steve Ballmer agreed to raise the offer to US$33 per share in a last-ditch effort to get a deal done.

Disillusioned shareholders are bound to question whether the rejection of Microsoft’s sweetened offer was driven more by emotion and ego than sound business sense.

‘Clearly there’s frustration,’ said Darren Chervitz, co-manager of the Jacob Internet Fund, which owns Yahoo stock. ‘I am not even sure if Yahoo cares about its shareholders because they didn’t show much regard for shareholders’ best interests in this process.’

Despite such negative sentiment, Yahoo shares are unlikely to immediately fall back to their US$19.18 pre-bid price, partly because some investors may still be holding out hope that the software maker will renew its takeover attempt if Yahoo continues to struggle.

To win the faith of shareholders, Mr Yang will have to execute a turnaround plan that he began drawing up nearly a year ago after he replaced Terry Semel as CEO amid shareholder angst about the company’s financial malaise.

Mr Ballmer also will be under the gun to prove he can come up with another way to challenge Google’s dominance of the Internet’s lucrative search and advertising markets.

The unsolicited bid was widely seen as Mr Ballmer’s admission that Microsoft needed Yahoo’s help to upgrade its unprofitable Internet division.

Analysts now expect Mr Ballmer to use the money he had earmarked for the Yahoo acquisition to explore other possible deals with large Internet companies like Time Warner’s AOL and News Corp’s MySpace and promising startups like Facebook and LinkedIn. — AP, Reuters
Source : Business Times   - 06 May 2008

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Two-horse race for building new broadband network - Singapore

Two-horse race for building new broadband network - Singapore

High-speed Internet infrastructure to reach all homes and offices by 2015
By WINSTON CHAI
(SINGAPORE) The battle to land a mammoth government contract for laying Singapore’s new broadband foundation has gone from a possible 10-cornered fight at the start to become a two-horse race between consortiums involving all three local telcos.
 
Joining forces: (from left) Axia CEO Art Price, SingTel S’pore CEO Allen Lew, SPH CEO Alan Chan and SP Telecom director Sim Kwong Mian. Mr Lew said OpenNet’s plan is to leverage SingTel’s high-quality network of ducts. 
At the close of its tender submission yesterday, the Infocomm Development Authority of Singapore (IDA) confirmed that it received only two Network Company (NetCo) bids.

OpenNet - a newly-minted joint venture (JV) between Canada’s Axia Netmedia, Singapore Telecommunications (SingTel), Singapore Press Holdings (SPH) and Singapore Power subsidiary SP Telecommunications - tossed its hat into the ring yesterday. The four partners have respective stakes of 30 per cent, 30 per cent, 25 per cent and 15 per cent in the JV.

A proposal had earlier been submitted by the Infinity Consortium, a group made up of local telcos MobileOne (M1) and StarHub, along with Hong Kong’s City Telecom.

The NetCo tender marks the first step in IDA’s ambitious plan to build a new, nationwide Internet infrastructure capable of delivering access speeds of 1 Gbps (gigabit per second) and beyond to all homes and offices by the year 2015 - a tenfold improvement from the fastest Internet package available today.

The winning consortium will lay the foundation for this new broadband highway by putting in the required infrastructure such as new ducts and high- speed cables. To help defray the costs of rewiring the island, the telecommunications regulator has previously said it will set aside a maximum NetCo subsidy of $750 million.

‘OpenNet’s plan is to leverage SingTel’s existing extensive high-quality network of ducts and the work we have already done in the rollout of an ultra-fast broadband network,’ said Allen Lew, CEO of SingTel Singapore. The consortium hopes to deliver the network more than two years ahead of schedule, with Axia having worked on similar projects in Canada and France.

As for Infinity, M1 CEO Neil Montefiore said it has ‘a unique blend of solid track records in Singapore and Hong Kong, and the essential qualities, to commit to building a world-class and future-proof broadband network for Singapore’.

Both consortiums are recommending a similar approach called fibre-to-the- home (FTTH) to fulfil Singapore’s broadband ambition. Fibre cables use light pulses to transmit data at lightning speeds and this is widely seen as the most viable way of meeting a country’s bandwidth demands for the next 25 years or more. The United States, Japan, Korea and Hong Kong are among the countries that already use FTTH networks to provide consumers and businesses with blazing access speeds.

Singapore’s rejuvenated broadband vision has generated tremendous buzz in the local IT sector since it was first unveiled by Prime Minister Lee Hsien Loong in 2006. The government sees this new high-speed network as a critical component for boosting Singapore’s competitiveness by powering everything from new electronic commerce solutions to Internet television services and research and development.

Ten companies had initially been sanctioned by IDA to lead individual NetCo bids but six of them eventually decided to team up and form two separate joint ventures instead. M1 partnered City Telecom and StarHub to form the Infinity Consortium. SingTel, on the other hand, joined hands with fellow pre-qualified bidders Axia and SP Telecommunications, and also roped in SPH to boost its bid.

These alliances have largely been sparked by an IDA mandate which bars existing telcos from taking full ownership of the NetCo - a move designed to level the broadband playing field and attract more players to join the market.

Four companies - Alcatel-Lucent, BT Singapore, Nokia Siemens Networks and Singapore Computer Systems - did not submit bids even though they had pre-qualified for this exercise.

‘The NetCo bid comprises mainly the laying of fibre optic cables, and involves a significant amount of civil works, such as the digging of roads and so on. This type of work is better suited to companies that have such experience in Singapore,’ said Alex Tan, country director of Nokia Siemens Networks Singapore.

Alcatel-Lucent said it hopes to provide equipment to the winning bidder instead of spearheading a bid itself.

The two other companies could not be reached for comment.

IDA is currently studying the two NetCo proposals and expects to pick a winner by the third quarter of this year.

Source : Business Times   - 06 May 2008

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Yahoo CEO in hot seat for rebuffing Microsoft bid - SAN FRANCISCO

Yahoo CEO in hot seat for rebuffing Microsoft bid  - SAN FRANCISCO
TOUGH ACT: Mr Yang will have to execute a turnaround plan to win over investors. — PHOTO: AFP
 
SAN FRANCISCO - YAHOO chief executive officer (CEO) Jerry Yang may have only a few months to convince Wall Street that his rebuff of Microsoft’s US$47.5 billion (S$65.2 billion) takeover bid was a smart move.
If he cannot, analysts will not be surprised if he is either replaced as CEO or forced to consider accepting a lower offer if Microsoft comes knocking at his door again.

The backlash, as expected, began yesterday, when analysts believed Yahoo’s stock price would surrender most, if not all, of its 50 per cent gain since Microsoft made its initial offer on Jan 31.

The shares tumbled as much as 20 per cent to US$22.97 in early trading, from last week’s close of US$28.67.

Meanwhile, disillusioned shareholders are bound to question whether the rejection of Microsoft’s sweetened offer was driven more by emotion and ego than sound business sense.

Mr Yang flew to Seattle last Saturday to inform Microsoft CEO Steve Ballmer that the company would not sell for less than US$37 per share - a price that Yahoo’s stock had not reached since January 2006.

At their meeting, Mr Ballmer had increased Microsoft’s offer to US$33 a share, from US$29.40 a share.

Analysts and investors were left to wonder why the two sides could not compromise at US$35 per share.

To win the faith of shareholders, Mr Yang will have to execute a turnaround plan that he began drawing up nearly a year ago after he replaced Mr Terry Semel as CEO.

Mr Ballmer also will be under the gun to prove he can come up with another way to challenge Google’s dominance of the Internet’s lucrative search and advertising markets. Analysts now expect him to explore possible deals with large Internet companies like Time Warner’s AOL and News Corp’s MySpace and promising start-ups like Facebook and LinkedIn.

To help boost its short-term profits and stock price, Yahoo is widely expected to form a long-term advertising partnership with Google.

Although the final details are still being ironed out, Yahoo wants to hire Google to place some of the text-based ads that appear alongside the search results on its website.

But turning to Google for help would be a humbling step for Yahoo after spending more than US$2 billion to acquire and build its own technology.

An alliance between Google and Yahoo will also face antitrust hurdles, because the two companies combined control more than 80 per cent of the United States search advertising market.

Standard & Poor’s equity analyst Scott Kessler believes Mr Yang should use some of his estimated US$1.9 billion fortune to personally buy more Yahoo stock, even though he already owns 3.9 per cent of the company.

‘Jerry Yang really needs to put his money where his mouth is,’ Mr Kessler said. ‘If he really thinks Yahoo is worth US$37, then he needs to step up and buy some shares when they are in the low US$20s.’

ASSOCIATED PRESS

Source : Straits Times   - 06 May 2008

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Family fights over 2 houses worth millions - SIngapore

Family fights over 2 houses worth millions - SIngapore

Wife of man who killed himself in US jail faces off against in-laws

By Selina Lum 
FAMILY FEUD: Mr Loo Chay Sit (above) and his brother’s wife, Madam Wendy Chen, met in court yesterday. — PHOTOS: JOSEPH NAIR FOR THE STRAITS TIMES
 
  View more photos
 
A FAMILY is locked in a court tussle over two properties worth millions three years after a Singaporean businessman killed himself while awaiting trial for killing his adopted son.
One house - in Margate Road off Mountbatten Road - was in the name of Charles Loo Chay Loo, who was taken off life support three months after he tried to end his life in a San Francisco prison. He was then 51.

The registered owner of the other house - in Seraya Lane off Haig Road - was Loo’s wife, Madam Wendy Chen Tsui Yu, 55.

But Charles’ mother, Madam Tan Chan Tee, 80, and his older brother, Mr Loo Chay Sit, 57, say they paid for the houses and are the actual owners.

Charles and his wife were only holding the properties in trust for them, they claim.

The case to determine who owns the properties opened in the High Court yesterday and is fixed for a 10-day trial.

Lawyer Low Chai Chong, representing the Loos, said the Margate Road property was bought by the elder brother for $195,000 in 1978. As MrLoo and his wife were going through a divorce then, the family put the property in Charles’ name instead, he said.

Noting that Charles was only 21 then, he added: ‘He did not pay for the house or make any contribution towards the purchase price.’

No formal documents were drawn up and Madam Tan kept the title deeds.

MrLoo lived on the property until Charles and his wife moved in when they got married in 1980.

As for the Seraya Lane property, Mr Low said it was acquired in 1975 by Madam Tan and her sister-in-law. In 1987, Madam Tan paid $788,000 to buy over her sister-in-law’s share.

The house was later transferred to Madam Chen’s name as Charles had convinced his mother, who already owned one property, that she would have to pay additional taxes on it.

In 1993, he and his wife left for the US. Mr Low claimed they were fleeing from the police for their roles in share transactions. But Madam Chen’s lawyer, Mr Chia Kok Khun, disputed this, saying they moved to the US to meet their son’s special education needs.

In September 2004, a depressed Charles allegedly stabbed his 17-year-old son to death.

Mr Chia said MrLoo started court action to stake his claim on the Margate Road house in April 2005, while Charles was still in a coma.

In March 2006, he won a court declaration that the house was held in trust for him. He transferred the property to his name and sold it within six months for $4.8million.

In January last year, Madam Tan took similar steps and got a default judgment against Madam Chen for the Seraya Lane house.

Around this time, Madam Chen found out about both judgments and took court action to have them set aside.

But by then, the Margate Road house had already been sold and MrLoo failed to pay the sales proceeds into court as ordered. Only $2.4 million of the proceeds remain, the court heard.

Mr Chia argued that Madam Tan and MrLoo have not been able to produce documentary proof that they paid for the properties.

Source : Straits Times   - 06 May 2008

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86,000 yet to sign up for Growth Dividends - SIngapore

86,000 yet to sign up for Growth Dividends - SIngapore
 
ABOUT 86,000 Singaporeans missed the first round of Growth Dividends paid out last Wednesday because they failed to sign up for the payout.
But they have up to Dec 31 to do so, in order to get the full sum that is being given out in two stages.

These non-recipients form 4 per cent of some 2.4 million Singaporeans aged 21 and older who are eligible for the dividends totalling $865 million.

Last week, about 2.3 million Singaporeans received the first payout totalling $407 million, the Finance Ministry said in a statement yesterday.

The Growth Dividends are from the large surplus accumulated from last year’s Budget.

Those who have signed up will also receive their goods and services tax (GST) credits and senior citizens’ bonus on July 1, as well as the second round of dividends on Oct 1.

The GST credits are given to offset last July’s two-point GST hike, while the senior citizens’ bonus is for those aged 55 and older and earning $100,000 or less a year.

Last year, nearly 80,000 people did not sign up for GST credits. More than half lived in private property, Finance Minister Tharman Shanmugaratnam said in January.

Among HDB dwellers who did not sign up, more were from the higher-income groups.

Of the 2 to 3 per cent living in one- to three-room HDB flats, Mr Tharman said no effort was spared to reach them, including grassroots leaders going from door to door to get them to sign up.

The amount of Growth Dividends given out range from $400 for low-income earners to $100 for those earning more than $100,000 a year. Those aged 60 and above and all national servicemen get extra.

There are two ways to sign up: Online at www.gstoffset.gov.sg or by completing forms available at community clubs and centres, community development councils and CPF service centres.

Those who wish to receive their first round of dividends and GST credits by July 1 must submit the forms by June 15, or sign up online by June 25.
 

Source : Straits Times   - 06 May 2008

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Two groups in fight to set up ultra-fast Internet - Singapore

Two groups in fight to set up ultra-fast Internet  - Singapore

Winning consortium to build fibre-optic network with speeds of up to 1Gbps

By Alfred Siew 
SINGAPORE moved a step closer to building its new ultra-fast national broadband network yesterday when two groups of companies submitted bids for the ambitious, multi-billion-dollar project.
The winner will build and own an underground fibre-optic network to transmit Internet data, voice and video so fast that an entire DVD can be transferred from one online user to another in minutes.

At the deadline for bids yesterday, two consortia led by Canada-based Axia NetMedia and Hong Kong’s City Telecom stepped forward.

Their bids came two years after Prime Minister Lee Hsien Loong unveiled plans for the network, which promises to put Singapore on par with regional rivals such as Hong Kong.

The government will provide up to $750 million in funding for the laying of cables in the network, which will see Internet connection speeds go up to 10 times faster than the best connection speed available today.

But speed is not the only change. The new network will also be ‘open access’, meaning that any operator (such as a telecom company) can plug into it for a fee and provide Internet, cable TV and telephony services to its customers.
No single operator will be allowed to own the network and block newcomers from accessing it, so there will be more choice and possibly lower prices for consumers.

Yesterday’s surprise was that Singapore Press Holdings, publisher of The Straits Times, had teamed up with SingTel, SP Telecommunications and Axia NetMedia in the OpenNet consortium.

It will use fibre-optic cables to deliver infinitely more data than the traditional copper wires used today.

Present at a press conference were Axia chief executive officer Art Price, SP Telecommunications director Sim Kwong Mian, SingTel Singapore CEO Allen Lew and SPH CEO Alan Chan.

The team reeled off the reasons why it deserved to win.

First, it is promising to roll out the network by June 2010, at least 2-1/2 years earlier than scheduled.

Second, OpenNet believes it can cable the island with minimal fuss. This is because SingTel and SP Telecommunications already have fibre-optic cables and ducts in the ground, and do not need to dig up roads again.

Finally, the team has an experienced player in Axia NetMedia, which is involved in similar open-access networks in Canada and France.

Asked why SPH had joined the consortium with SingTel instead of its smaller competitors, CEO Alan Chan said: ‘SPH is always at the forefront of investing in new technologies. We would like to put money into what we would call a winner.’

The rival Infinity team is also no pushover, though it kept mum on the details of its bid yesterday.

It is led by City Telecom - which recently rolled out an ultra-fast network in Hong Kong boasting 1 Gbps speeds - and includes local heavy hitters StarHub and MobileOne.

A spokesman said it would also be building an open-access network using fibre-optic technology, but did not comment on rollout dates.

StarHub also has fibre-optic cables underground, like SingTel, though on a smaller scale.

Mr Soh Siow Meng of research firm Current Analysis said although there were only two bids, it was encouraging to see that the team leaders were new foreign telcos.

‘It is symbolic, yes, but it also means the new entrants now have a bigger stake in the project and will bring more innovation and competition,’ he said.

The winning bid will be announced in the third quarter of this year.

 Mega project
What it is about
A competition to build an ultra-fast broadband network that will deliver Internet access, voice calls and video to schools, homes and offices islandwide.

What is at stake

The winner will own the network and collect fees from telecom companies and other operators which use it to deliver broadband packages, cable TV and telephone services.

What will change
For consumers: Greater choice and possibly lower prices because there will be more competition between operators, who are free to connect to the network.

For operators: No more monopoly power as no single operator can own the infrastructure. Instead, they will have to fight the competition with better service and more innovation.
ALFRED SIEW

Source : Straits Times   - 06 May 2008

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