CDL’s gain up 31% in quiet Singapore market

CDL’s gain up 31% in quiet Singapore market

Firm notches $165m in profits but sees weaker times ahead

By Joyce Teo

NOT READY: CDL is holding back launches of Shelford Suites (above), The Arte @ Thomson, Pasir Ris Phase 1 and The Quayside @ Sentosa.

DESPITE the subdued residential property market, Singapore developer City Developments (CDL) still notched up a 31 per cent growth in first-quarter net profit to $164.97 million.
It has held back launches here given the quiet market.

Revenue in the three months ended March 31, however, fell 1.3 per cent to $758.75 million.

CDL sees weaker times ahead. Property market sentiment may remain subdued in the next 12 months with problems linked to the United States sub- prime crisis still looming and given the expected credit tightening by some financial institutions, it said.

But the current uncertainty is a ‘temporary environment’ and Singapore’s nimbleness in responding to economic changes will provide the Republic with the resilience to cope, it added.

‘While there are currently less forthcoming individual property buyers, the group notes that foreign funds from Europe, US, Korea and China are migrating their focus to Asia,’ it said. And Singapore is one of the key markets they are keen on, it added.

Nevertheless, for now, the group is still holding back launches of its Shelford Suites, The Arte @ Thomson, Pasir Ris Phase 1 and The Quayside @ Sentosa.

First-quarter profits, CDL said, were recognised from projects such as City Square Residences and One Shenton, as well as joint-venture projects such as The Sail @ Marina Bay, St Regis Residences and Parc Emily.

The group has profits yet to be recognised from residential developments sold over the last three years that are still being built.

CDL also benefited from the strong office market, even though rent increases have moderated to 7.8 per cent in the first quarter, from 10.9 per cent in the previous quarter.

Office leasing, it said, should remain strong with upward adjustment of existing rentals to a higher level when the existing leases are up for renewal.

In the hotel sector, CDL - which has a 53 per cent interest in Millennium and Copthorne Hotels - said it was too early to tell whether the slowdown in the US economy and current credit crunch will hit it.

First-quarter earnings per share were 18.1 cents, up from 13.9 cents, while net asset value per share was $5.84 as at March 31, up from $5.72 as at Dec 31.

Source : Straits Times - 15 May 2008

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‘Leadership position’ helped Singapore SingTel snag iPhone contract

‘Leadership position’ helped Singapore SingTel snag iPhone contract

Telco rings up $3.96b in full-year gains despite challenging environment

By Chua Hian Hou

SINGTEL said yesterday that its dominant market position in Singapore was a crucial factor that allowed it to lock down a deal to sell Apple’s iPhone.
The telco’s chief executive for Singapore, Mr Allen Lew, told a conference on its results yesterday that the ‘leadership position’ its 2.57 million mobile customers here had conferred on it had definitely ‘contributed to the iPhone deal’.

SingTel announced on Monday that it will launch the iPhone later this year, ending months of speculation about whether Singapore would ever get the device.

Rival telcos StarHub and M1 remain in discussions with Apple. StarHub has indicated that it was confident of securing distribution deals.

Mr Lew told the conference that the company intends to ensure that its pole position in the market is ‘maintained and unchallenged’.

It reiterated this stance in a statement accompanying its results, where it noted the focus in Singapore is on gaining market share.

SingTel underlined its strength by unveiling a solid set of numbers yesterday.

Net profit for the year to March 31 was $3.96 billion, up 4.8 per cent from the year before, with revenue rising 11 per cent to $14.8 billion.

Earnings per share for the year was 24.9 cents, up from 23.25 cents, while group net asset value per share rose to $1.32, from $1.312.

The firm declared a final dividend of 6.9 cents per share for a total payout of 12.5 cents per share.

It will revise its dividend payout ratio, from 40 per cent to 50 per cent of underlying earnings, to 45 per cent to 60 per cent.

Group chief executive Chua Sock Koong said ‘all our businesses are performing well and the group’s fundamentals are strong’ despite a challenging environment, especially in Singapore and in Australia.

The results marked her first year at the helm of the Asia-Pacific’s largest telecommunications group.

While the company maintained its double-digit earnings growth target, Ms Chua warned that the uncertain macroeconomic environment was likely to have an impact on future growth.

The chief executive for SingTel’s international operations, Mr Lim Chuan Poh, said the global credit crisis had impacted the company in another way.

Tighter credit meant fewer competitors for deals but also fewer deals as potential sellers pulled back, worried that they would not get a good sale price in such a climate.

In the last 15 years, SingTel has spent about $18 billion acquiring stakes in foreign, high-growth telcos such as India’s Bharti Airtel and Indonesia’s Telkomsel.

In a report issued after the results were released, DBS Vickers maintained its ‘hold’ rating on SingTel and set a price target of $3.98.

While SingTel had shown ’strong results’, said analyst Sachin Mittal, its 6.9 cent dividend ‘fell short of our expectations of 15 cents’.

SingTel shares fell two cents to $3.73.

Source : Straits Times - 15 May 2008

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43rd Singapore NDP will have something for everyone

43rd Singapore NDP will have something for everyone

By Jermyn Chow

THE purr of Formula 1 powerboats and roar of Singapore’s Black Knights, together with crowd-pleasers like the parachuting Red Lions, will send pulses racing as the nation celebrates its 43rd birthday.
The 27,000 lucky people who land tickets to the Aug9 party, to be held at Marina Bay again, will catch the action up close.

A special three-tiered stage will be built between the seats and the floating platform after feedback showed that some who attended last year’s parade felt the offshore-stage was too far.

‘People had difficulty understanding what they were watching, so we had to find a way to bring performance and parade closer to the audience,’ said Colonel Tung Yui Fai, chairman of this year’s organising committee.

This year, the promenade separating the floating platform and the seating gallery has been expanded to about twice its original width - some of the tweaks made for the upcoming Formula One race in September.

This added space will allow the Guard-of-Honour contingents of the military parade to be on the promenade while the supporting contingents will be positioned on the new stage.

This means some stunts - the landings of the parachuting Red Lions, for instance - will take place mere metres away from the audience. It also means, though, that the jumpers have to train to land in a smaller area.

These and other details of the birthday bash of the year, being organised by the Singapore Armed Forces’ Headquarters Guards, were unveiled yesterday.

The theme of the parade - Celebrating the Singapore Spirit - was inspired by Prime Minister Lee Hsien Loong and Senior Minister Goh Chok Tong, among others, who have spoken at length about the Singaporean ’spirit’, said Col Tung, adding that it is something with which people can connect.

To that end, he promised a parade with something for everyone.

For thrill-seekers: a six-minute aerial ballet by the Republic of Singapore Air Force (RSAF) Black Knights to commemorate the 40th anniversary of the Air Force.

There will also be the traditional fly-past, 21-gun salute and fireworks segments.

Some items left out of last year’s parade, such as the 400-strong combined schools choir, military band and the SAF’s precision drill display, will make a comeback.

The action will stretch from the stage to the stands - the audience will be roped in to form a giant birthday card and more than 300 cheerleaders will keep spirits high by leading the Singapore Cheer.

ColTung said: ‘You cannot make NDP a fine cuisine that caters to a certain segment of the population. It is…like a buffet. Anyone who comes to the parade must have something that they like.’

Rehearsals to stage the perfect show, involving about 3,000 performers, began as early as March.

The party will also not be a one-day affair - festivities, including arts and sports activities in the Marina Bay area, will stretch from July 16 until Aug 24.

Most, though, are likely to clamour for tickets to the main event, going by what happened last year - close to 500,000 applied for the 27,000 available tickets.

This year’s balloting begins tomorrow.

There will also be standing room for another 150,000 to 200,000 people around Marina Bay and the Esplanade.

Those further afield can catch the parade live on www.ndp.org.sg

Launched yesterday, the site will also have the latest updates, pictures, and audio and video clips.

With the Beijing Olympics beginning on the parade’s eve and without the novelty of the new venue, party planner ColTung admits he has a challenge ahead.

But he seems confident that Singapore’s 43rd birthday bash will be just as brilliant as the parties that have come before.

He said: ‘I’m not worried. Looking at the participants, the energy and determination they have to make the show better…the NDP has a brand of its own.’

Source : Straits Times - 15 May 2008

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Investors betting on firms that could win rebuilding contracts

Investors betting on firms that could win rebuilding contracts 

By Goh Eng Yeow 

INVESTORS have started buying up stocks that are likely to win extra business in the massive reconstruction effort that is expected to follow the deadly Sichuan earthquake.
Shares of steel, aluminium and building-materials firms listed in Shanghai and Hong Kong shot up sharply yesterday on expectations that these businesses are in line for lucrative reconstruction contracts.

In Singapore, traders bought big on financial instruments called covered warrants linked to Hong Kong-listed China Railway Construction, one of the mainland’s biggest construction firms.

These warrants give investors an option to buy into China Railway Construction until September. If the company wins a big Chinese government contract, these investors stand to gain.

As fresh details of the devastation emerged, traders began to realise the extent of likely rebuilding efforts - especially given China’s strong position to carry out such work.

‘China has US$1.6 trillion (S$2.2 trillion) in foreign reserves. It has ample financial resources to rebuild areas worst hit by the quake,’ said a remisier in Singapore yesterday.

In Shanghai, big gainers included Aluminium Corp of China, which jumped 6.4 per cent, and Yunnan Copper Industry, which surged 10 per cent. Cement firms such as Huaxin Cement and Fujian Cement gained 10 per cent each.

Similar strong buying swept the Hong Kong bourse as investors sought out mainland stocks listed there which might benefit from the reconstruction efforts.

Anhui Couch Cement Company was up 3 per cent and Maanshan Iron & Steel gained 4 per cent, while China Construction and Jiangxi Copper each rose 1 per cent.

Mr Simon Yung, BNP Paribas’ head of retail listed products sales for Singapore and Hong Kong, said mainland steel counters would be the first stocks to reap the benefits of any reconstruction efforts as the earthquake will exacerbate an already acute shortage of steel in China.

 
Source : Straits Times - 15 May 2008

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China’s swift and open rescue efforts win praise

China’s swift and open rescue efforts win praise 

Beijing appears to have drawn lessons from its handling of past crises

By Peh Shing Huei 

 
 
CHINA in crisis is showing a calm, competent and compassionate side that seems to be impressing the world.
Three months before the public relations engine is to crank into action with the Olympics to showcase its arrival on the world stage, the Chinese government is already winning plaudits for its swift response to the earthquake.

The state media’s blanket coverage of the 7.9-magnitude quake, and regular updates of casualty figures and rescue roadblocks, have also surprised many who are used to a Great Wall of Silence when bad news hits China.

Pictures and television clips of the rescue efforts show a side of China that impresses: workers dressed in crisp outfits and fitted with proper gear, troops in orderly contingents, nurses well-turned out in their uniforms.

Calm, organised, and compassionate - this is the compelling image that they have conveyed to the world, say observers.

The New York Times said that ‘China may be having a defining moment’ in its zigzag pursuit of the most effective form of authoritarian rule.
Bloomberg news agency yesterday praised the ‘candour and access’ given to reporters.

Minutes after the disaster struck, official news agency Xinhua was showing pictures and quoting eyewitnesses. Within a day, the government held a briefing in Beijing to provide updates on the death toll.

Two hours after the news broke on Monday, Premier Wen Jiabao boarded a plane for the disaster zone and Xinhua filed his comments from the aircraft.

Propaganda chief Li Changchun, the fifth-ranked member of the ruling Chinese Communist Party, urged the local media to do a good job in reporting the rescue efforts.

A government circular was also issued on Tuesday, asking the media to give timely and accurate reports on quake-hit regions and victims to reassure the public.

It even asked local officials to take care of reporters.

The China Central Television cancelled regular programming to go round the clock, beaming images of a tearful Mr Wen calling out: ‘This is Grandpa Wen’, to children buried in the rubble of a primary school.

Foreign journalists have also had free access, in sharp contrast to the Tibet riots in March when they were thrown out of the restive region.

‘The government has learnt its lesson. It has realised how problematic it can be when information is not shared openly,’ Dr Yang Guobin of Singapore’s East Asia Institute told The Straits Times.

The 2003 Sars crisis is a classic example, he added. Officials’ attempts to cover up led to widespread speculation, rumours and fear among the people.

‘There were also rumours about this earthquake, but the openness of the official media caused them to die out quickly. There is a surprising sense of calm among the public,’ he said.

While Chinese bloggers have seized on an unsubstantiated conspiracy theory that a geologist had predicted the quake in advance but was ignored by officials, such online criticism is being drowned out by praise.

Many more are cheering the speed of the rescue efforts and the open and transparent way in which the government is managing the crisis.

A post on popular forum Tianya read: ‘I thought the government did well this time - speedy reaction and strong organisation.’

But analyst Lin Kun-Chin of the National University of Singapore warned against premature excitement over a change in the Chinese government’s media policy.

‘It is not that the Chinese government is more open and that the media is more relaxed,’ he said. ‘It is good for the image of the government that the disaster and its rescue efforts are publicised and no one official can be blamed for the earthquake.’
President Nathan sends condolences to President Hu

SINGAPORE President SR Nathan sent a condolence letter to his Chinese counterpart yesterday. Here is the text of the letter:
Dear President Hu Jintao,

It is with much sadness that I am sending you this message on behalf of the people of Singapore, for the families who are suffering immense sorrow and despair following the earthquake in Sichuan.

I am especially saddened by the great loss of lives and the numerous children and youths who have been so tragically killed by this deadly disaster.

Your government’s unflagging effort and swift response to the disaster, despite the limitations of terrain and distance, and the mobilisation of all your people is highly commendable.

I am confident that under your able and decisive leadership, China will quickly overcome the consequences of this tragic event and help restore your people’s confidence and resoluteness in facing such unforeseen disasters.

I sincerely hope that the affected regions will return to normalcy in the soonest possible time.

SR Nathan

Source : Straits Times - 15 May 2008

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Live and work under one roof - Singapore

Live and work under one roof - Singapore

Multiple-usage buildings bring commercial and retail conveniences closer to their residents and is an approach that urban planners in land-scarce Singapore is encouraging, reports JOEL CHUA

MOST of us relate to the necessary evil that is the early-morning commute through snarling traffic to work and the evening one back home.
 
Prime property: Eight out of Ion Orchard’s 56 storeys will be assigned retail space and the rest of the floors will be designated as luxury residential apartments
Now imagine if work was just a ride on the lift down from your apartment. Another journey on the lift after work to de-stress with some retail therapy at the mall located just a few floors below the office, and a final one at the end of the day - back to the apartment for a good night’s rest. An entire day’s work and play carried out without even having to leave your building of residence.

While that may be somewhat of an exaggerated depiction of modern living that will probably remain in the domain of the distant future, it is not an entirely inconceivable one either. With more multiple-usage (or ‘multi-use’) buildings being built in Singapore, there is an unmistakeable trend in that direction.

And at least one aspect of that prospect has already become reality. Such integrated buildings not only introduce lifestyle conveniences to its occupants in a unique manner, but also make for more efficient use of land.

One prominent example would be Ion Orchard, the highly anticipated development currently being constructed next to Orchard MRT station. While eight of its eventual 56 storeys will be assigned retail space, the rest of the floors will be designated as luxury residential apartments.

The prospect of high-end shopping without having to change out of your bedroom slippers will undoubtedly be appealing to some. But even though Ion Orchard represents the latest upscale development along this trend, the concept itself is not entirely novel. Ion’s precursor predates it by almost four decades.

The first structure to be recognised as a multi-use building in Singapore is the People’s Park Complex in Chinatown. When it opened for business in 1970, it pioneered the concept by integrating shopping, commercial, residential and parking facilities within a single building structure. For the first time, a ride in the lift or a short walk down the stairs was all that kept residents from their shopping and marketing needs.

And it was a groundbreaking construction endeavour in more ways than that, as it was also the first structure to be built in the podium and tower block design, as well the first significant public building project that involved the private sector’s participation. Today, it still manages to retain the rustic charm of a bygone era.

Since then, more buildings that combine traditionally separate uses of space - typically residential with commercial - have been built.

While such buildings bring commercial and retail conveniences closer to their residents, there is also the urban planning case to be made for this trend.

Assigning more uses to a single building means that less land would have to be freed up for otherwise separate developments. In land-scarce Singapore, this is the approach that urban planners are encouraging.

And it’s not just the residential-commercial integration that is becoming popular. New public amenities such as community libraries no longer occupy their own buildings, but are being built into shopping malls and other existing buildings.

Police and fire stations are being housed in common operating bases. Community centres are also beginning to accommodate permanent tenants, such as childcare centres and offices of other social welfare organisations. These trends give an insight into what the all-in-one building of the future may look like.

While such combinations of public amenities and spaces undoubtedly make good planning sense, combining residential with commercial spaces is rather trickier.

While some may relish the idea of living above a shopping mall, not everyone may be sold on it, especially when you consider certain problematic implications.

According to Yan Kum Seng, the past president of the Singapore Institute of Building, there is one obvious lifestyle drawback associated with such an integrated building.

‘When it comes to residential (spaces),’ he says, ‘people may prefer to be more private instead of being exposed to the public.’

It is a valid concern that also has to do with security and noise pollution. While having the world at your feet can be great, it also means that the world will be able to look up at you, whether you like it or not.

Still, smart architectural design and utilisation of specialised building materials to maintain privacy and keep out noise pollution can go some way in mitigating those concerns with residents.

Then there is also the potential problem of a future en bloc sale. According to Mr Yan, who has 30 years of experience in the building industry, if you think that a regular residential en bloc process is a hassle, requiring agreement among sometimes fractious neighbours, the process for a multi-use development with a residential component can be even more of a headache. This is because it is far more difficult to apportion the evaluation shares of both the commercial and residential property owners.

Source : Business Times - 15 May 2008

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4 bungalows sold for $5.5m each - Singapore

4 bungalows sold for $5.5m each - Singapore

$22 million transaction works out to $1,128 psf of built-up area
By KALPANA RASHIWALA

AMID the current quiet residential market, some deals are still being stitched up.
 
Quartet on Vanda: The freehold cluster on a 12,300 sq ft site at Vanda Crescent off Dunearn Road was bought by a European and his Singaporean wife. Each two-storey unit has an attic, a basement and a swimming pool 
All four strata bungalows in a freehold cluster housing development near Eng Neo Avenue were snapped up at $5.5 million each at a preview on Friday last week by a European with a Singaporean wife.

The $22 million transaction works out to $1,128 psf of built-up area. ‘The units were bought partly for the buyers’ own use and partly for investment,’ said Jerry Tan, managing director of JTResi, the sole marketing agent for Quartet on Vanda. JTResi previewed the development over a ‘champagne supper’ at its premises on Club Street May 9 evening and the four units were sold during the course of the evening.

The bungalows, which are expected to be completed early next year, are being developed by Stanley Quek’s Region Development on a 12,300 sq ft site at Vanda Crescent off Dunearn Road. Each two-storey unit has an attic, a basement and a swimming pool. Built-up areas range from 4,844 sq ft to 4,919 sq ft.

‘The market is not as dead as people may perceive it to be. For better quality developments that are priced sensibly, there will be buyers,’ Mr Tan said.

Dr Quek is also developing a couple of conventional bungalows on the next-door plot which will come on the market soon, Mr Tan revealed. Each two-storey bungalow will have an attic and have a land area of about 5,000 sq ft.

JTResi, a seven-year-old boutique residential property consultancy, has also been quietly doing resale and leasing deals at The Grange, which received its Temporary Occupation Permit a couple of months ago. ‘About four weeks ago, we sold the penthouse at The Grange for $11 million to a Singapore PR who is from mainland China,’ Mr Tan revealed. The deal for the 4,400 sq ft duplex unit worked out to just under $2,500 psf and the seller had bought it from the developer for about $6.8 million in 2005, according to Mr Tan.

JTResi also recently brokered leasing deals in the development at a monthly rental of $15,000 for a three-bedroom apartment of 1,765 sq ft below the penthouse, and four-bedroom, pool-facing unit on a low floor at $16,000.

The Grange comprises two freehold blocks of 19 and 23 storeys.

Cushman & Wakefield last month also brokered the sale of a four-bedroom unit on the 17th floor of The Grange for $6.2 million or $2,692 psf. The buyer is a Singapore PR who is believed to have invested in other luxury apartments here.

The seller had bought the unit (in the subsale market) for $4.15 million or $1,801 psf in late 2006. ‘The vendor made a cool $2 million profit after holding the asset for 1.5 years. Due to the run-up in prices in the last 12 months, some vendors have made enough ‘paper gains’ to realise a decent profit even if they sell at today’s prices,’ said Cushman managing director Donald Han.

Mr Han estimates The Grange unit his firm sold recently might have fetched just under $3,000 psf had it changed hands last year when sentiment was stronger. ‘Generally, there’s support for prime residential properties which appeal to foreign investors and where yields are fairly attractive,’ he added.

Source : Business Times - 15 May 2008

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$20m scheme launched to help SMEs venture overseas - Singapore

$20m scheme launched to help SMEs venture overseas - Singapore
INTERNATIONAL Enterprise (IE) Singapore yesterday launched a $20 million programme to help small and medium enterprises (SMEs) venture overseas.
The Internationalisation Capability Development Programme (iCDP) will support the development of capabilities that firms need to expand beyond local shores. These include branding, design, intellectual property, and franchising and licensing, said IE Singapore chief executive Chong Lit Cheong.

For project-based applications, a firm can get up to $300,000 per project. Support for eligible costs - manpower, hardware and software costs, appointment of third-party consultants and IP - range from 30 to 50 per cent.

The iCDP will benefit some 250 to 300 firms over the next three years, said Mr Chong.

To be eligible for the scheme, companies must have a turnover of at least $500,000, total business spending of at least $250,000 for each of the past three years, minimum paid-up capital of $50,000 and at least three managerial employees.

Going into overseas markets is a ‘natural progression’ for many SMEs and an upward trend, said IE Singapore. It cited a study last year by DP Information Group which showed that 70 per cent of 10,000 firms surveyed had begun exporting - up from 59 per cent in 2006.

 
 
On a similar note, IE Singapore has set up a centre at which SMEs can seek free personal advice on overseas plans such as exporting, setting up foreign offices and legal issues. A revamp of the former Resource Centre, it is located at IE Singapore’s office in Bugis and is open from 9am to 6pm on weekdays.

Source : Business Times - 15 May 2008

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More big firms could join Singapore MOE’s computer project

More big firms could join Singapore MOE’s computer project

IBM, SCS consider participation in 2nd Standard Operating Environment project
By ONG BOON KIAT

ELEVEN companies, comprising local and multinational heavyweights, have thrown their hats into the ring for a mega IT project from the Ministry of Education (MOE), but more goliaths are set to wade into the fray over the coming months.
They include Singapore Computer Systems (SCS) and global IT giant IBM, which both indicated this week that they were mulling over their participation in the Standard ICT Operating Environment (SOE) for Schools project.

The first SOE project, coined SOEasy, was awarded in February. It involves about 60,000 computers from 74 public sector agencies and has a contract sum of $1.3 billion over eight years.

The cost of the second SOE will be known only after its final tender specifications are released by MOE in April next year. However, an industry source estimated that this project could have a contract value that is close to the first SOE deal - over the same eight- year contract period.

Mainboard-listed SCS is already involved in the current 60,000-seat SOE for the public sector contract but is keen to enter the SOE fray again. ‘We will announce our plans at a later stage,’ said SCS chief executive Tan Tong Hai, responding by e-mail to a query from The Business Times.

 
 
‘We believe that our delivery capabilities and economies of scale can add value to any bidders for SOE 2. As such, we are honing our fulfilment capabilities from now till the release of the RFP (Request-for-Proposal) next year,’ he said.

IBM is ‘in the midst of evaluating the opportunity’, said an IBM Singapore spokesman this week.

The technology giant could ‘leverage our expertise to deliver solutions developed on open standards providing an open and collaborative environment’, the spokesman added.

IBM participated in the first SOEasy bidding exercise but pulled out last September - five months before the award of the tender in February - due to differences with consortium partner NCS.

Both SCS and IBM were absent from the initial list of participants in the prequalification exercise of the second SOE. The list was released by MOE last Wednesday and included SingTel, Microsoft Singapore, ST Electronics, HP Singapore, Cisco Systems, Lenovo Singapore, NEC, NCS, Getronics Solutions, Civica and Datacraft Singapore. MOE’s pre-qualification exercise for suitable vendors closed two weeks ago on April 29.

However, an MOE spokesman said last week that new vendors could still participate in the final tender by submitting a request for pre-qualification to MOE.

Another notable absentee from the list of early front-runners is US IT service giant EDS, which won the first SOEasy contract as leader of the winning consortium. An EDS spokesman said this week: ‘We have no plans to prime a consortium for Phase Two.’

In an unexpected twist this week, EDS has agreed to be acquired by HP in a US$13.9 billion blockbuster deal. HP, which lost to EDS in the first SOE tender, is partnering with ST Electronics in the second SOE exercise.

Another surprise absentee from the early proceedings was homegrown IT services firm BT Frontline, which was acquired by British telco BT earlier this year. Chairman Steve Ting has earlier said that the company is keen. A company spokesman contacted by BT could not confirm the company’s decision on this.

One vendor unequivocal in its intention is networking equipment maker 3Com. This week, the company reiterated that it wants to be an equipment supplier for the project.

The company is now talking with one or more consortia that have participated, said Gene Ng, 3Com country manager for South Asia. He declined to elaborate which parties the company is in talks with.

SOE is the government’s initiative to standardise computer, messaging and networking systems in the public service, so as to cut costs and improve productivity.

Source : Business Times - 15 May 2008

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CDL offers words of cheer - Singapore

CDL offers words of cheer - Singapore

It posts 30.8% increase in Q1 net profit to $165m
By KALPANA RASHIWALA
THE Singapore residential property market has slowed to a trickle, but shareholders of City Developments Ltd (CDL) should feel heartened by strongly worded reassurances in the group’s first-quarter results statement, which showed a 30.8 per cent increase in net earnings to almost $165 million.
CDL vowed that it is ‘committed to do everything possible within our means to face any problems which may arise’. ‘Importantly, we continue to be creative and innovative in our business strategies.’

‘With profits yet to be recognised from residential developments sold over the last three years which are still in the course of construction, the group is confident of remaining profitable during the next 12 months, even if it decides to continue to hold back or pace its property launches,’ CDL, which is part of Singapore’s Hong Leong Group, said.

When the future looks uncertain, there’s nothing like turning to history to draw some inspiration. ‘The group has seen many of such economic challenges, having operated for over 40 years. This is not new to us. Our track record has demonstrated profitability over many years, reflecting our success in weathering out these trials because we have remained flexible in our business approach,’ CDL said.

For the first quarter ended March 31, 2008, profit before tax from property development rose 49.1 per cent from the same year-ago period to $155.1 million on the back of higher profit margin achieved for projects launched in recent years as well as profit recognised for The Oceanfront @ Sentosa Cove and Ferraria Park, and higher contributions from The Sail @ Marina Bay and St Regis Residences. Pre-tax profit from hotel operations rose 24.5 per cent to $52.1 million, thanks to encouraging hotel market conditions in New York and Singapore.

First-quarter pre-tax profit from rental properties nearly doubled from $12.9 million to $25.1 million primarily due to improved rental income, the recovery of some property taxes from tenants and increased contribution from CDL Hospitality Trusts.

Group revenue dipped 1.3 per cent to $758.8 million, but the figure excluded the group’s share of revenue in jointly controlled entities. If this were to be included, Q1 revenue would show an increase of 6.9 per cent to $956.8 million.

CDL said the group has lined up four projects for launch ‘once sentiments improve and when pent-up demand can be expected’ - the 77-unit Shelford Suites; 336-unit The Arte @ Thomson; the first phase of a 724-unit condo at Pasir Ris; and The Quayside @ Sentosa Cove, with 228 units.

The Shelford and Thomson Road developments are freehold while the Pasir Ris and Sentosa Cove projects are on sites with 99-year leasehold tenure.

CDL, which is also a major office landlord here, said that it is expediting the construction of two office projects in Tampines to meet growing demand for offices outside the Central Business District. One is the three-storey Tampines Concourse, with 105,000 sq ft of total lettable area that will come up on a 15-year leasehold transitional office site CDL bought earlier at a state tender. The second project is 9 Tampines Grande, which will offer 300,000 sq ft housed in two eight-storey office blocks.

Earnings per share rose from 13.9 cents in Q1 2007 to 18.1 cents in Q1 2008. CDL closed unchanged at $11.70 yesterday.

Source : Business Times - 15 May 2008

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$1.1b Singapore govt infocomm pie up for grabs this year

$1.1b Singapore govt infocomm pie up for grabs this year

Big boys may gain more, with several large projects on the cards
By ONG BOON KIAT

(SINGAPORE) Infocomm vendors in Singapore can expect a $1.14 billion government procurement bonanza this year. That is the estimated total value of new IT-related tenders expected to be called by the public sector this fiscal year.
At an IDA seminar yesterday, its chief executive Ronnie Tay said the industry could look forward to more than 390 new infocomm tenders in the coming 12 months.

The figure of $1.14 billion eclipses last year’s projections by about 50 per cent. In 2007, the government projected $730 million worth of infocomm tenders. A total of $2.12 billion worth of contracts were awarded last year.

In fiscal 2006, infocomm tenders worth $620 million were projected, with $850 million awarded. The government’s fiscal year 2008 started on April 1 and stretches till March 31, 2009.

The announcement spells good news for IT vendors in Singapore, but perhaps even more so for the big players. There are 13 tenders worth $10 million or more, collectively adding up to $810 million - or more than 70 per cent of the estimated total procurement value this year.

One large player which plans to profit from the available tenders is ST Electronics, the $1 billion electronics subsidiary of ST Engineering. ST Electronics president Seah Moon Ming said the burgeoning procurement activity reflects the growing importance of infocomm technology to the public sector and the general economy in Singapore.

 
 
At the lower-end of the tender value, it is expected that there will be 226 tenders worth less than $500,000 this year. These lower-value tenders add up to a total of $50 million in estimated procurement value.

But the much-smaller pie does not mean smaller vendors will lose out, said Lara Lai, vice-president of Sky Media, a 20-person home-grown Singapore digital content developing firm that has done projects with a number of government agencies, including the Ministry of Education (MOE).

‘I don’t see ourselves as being out of the picture,’ she said. ‘For projects that are suitable for our scale, it is good news now there are (more such) projects. For the bigger ones, we can go in as a consortium.’

Douglas Choo, director of corporate development at HeuLab, a 38-person Singapore learning software firm, echoed similar sentiments. By pursuing consortium-based bids for public sector projects, smaller players can thrive, he said. ‘With Heulab, we will definitely be able to tap on the niches that other big players cannot do.’

According to Pauline Tan, senior director, Government Chief Information Office, IDA, the biggest government spenders include the IDA, Ministry of Finance, Inland Revenue Authority of Singapore (IRAS), Ministry of Home Affairs (MHA) and Ministry of Defence (Mindef).

The single biggest tender this year is likely the Next Generation National Broadband Network Operating Company (OpCo) project, which the government will be funding up to $250 million. This is the second part of Singapore’s next generation ultra-fast broadband, a project which will have nationwide coverage by 2015. The OpCo will operate the network.

Another headliner this year is the government’s tender for its second data centre, estimated to cost $100 million. This 30,000 sq m facility will house government ICT systems and will be procured on a build-and-lease model.

MHA and Mindef expect their total infocomm procurement value this year to be worth an estimated $88 million and $102 million respectively.

IRAS will be putting out tenders this year to enhance its one-stop e-services portal, called IRIN (Inland Revenue Interactive Network).

Last year has been a bumper year in terms of public infocomm tenders awarded, including the $1.3 billion Standard ICT Operating Environment (SOEasy) for the public sector.

Other major projects awarded last year were the Supply of Integrated IT Support and Services by Mindef; the Forward Command Post by MHA; and the Corporate Resources System by National Library Board.

Source : Business Times - 15 May 2008

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Mindy Yong

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