Singapore Govt will do what it can to minimise internal causes of inflation

Singapore Govt will do what it can to minimise internal causes of inflation

By Imelda Saad,

SINGAPORE : Senior Minister Goh Chok Tong has said that the government will do what it can to minimise the internal causes of inflation.

Speaking at the Marine Parade National Day Dinner on Saturday, Mr Goh also highlighted the need for a systematic search for talent at the community level.

There is an urgency for this, as Singapore faces challenges like a widening income gap, ageing population and having to assimilate new immigrants.

As the country copes with unprecedented inflation figures, Senior Minister Goh gave the assurance he is in favour of exercising restraint over non-essential fee increases this year.

He said: “The real answer in coping with higher food and oil prices is to grow the economy and create jobs. If we have jobs, we can live with the higher prices.”

And while Mr Goh remains optimistic about the future, he also sounded this urgent message.

He said: “Besides the government sector, there are three key sectors which require systematic renewal of leadership - the business sector, the unions and the community and voluntary welfare sector. Of the four sectors, the community and voluntary welfare sector is the weakest in terms of planned leadership succession.”

And this is cause for worry because community leaders provide the glue that bonds Singapore’s multiracial society, as well as provide help to the needy.

To address this, Mr Goh announced the set up of a NextGen (Next Generation) Leadership Foundation.

With an initial budget of S$200,000 a year, the programme will develop promising future leaders.

It will reach out to students and young working adults.

For now, the initiative will be confined to residents of Marine Parade GRC and MacPherson constituency.

As resources expand, Mr Goh said the programme will be offered to other constituencies. - CNA/ms

Source : Channel NewsAsia - 17 Aug 2008

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Singapore Mah Bow Tan says home upgrading works will be affordable for all

Singapore Mah Bow Tan says home upgrading works will be affordable for all

By Hoe Yeen Nie,

SINGAPORE : National Development Minister Mah Bow Tan has given the assurance that no household will be left out of the benefits of basic home improvement works.

Mr Mah, who is also MP for Tampines GRC, was speaking at the launch of an upgrading project at a Tampines precinct.

Under the scheme - known as the Home Improvement Programme - introduced last year, basic repairs are fully funded by the government, while residents pay for other non-essential works.

And although rising costs have been a concern for many, Mr Mah said the bill will remain affordable for all. And the Housing and Development Board has schemes in place to provide low-income residents with financial assistance. - CNA/ms

Source : Channel NewsAsia - 17 Aug 2008

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Mindy Yong

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Still ‘one safe haven’ for investors - Reits

Still ‘one safe haven’ for investors - Reits

Funds turning in ‘decent results’ and should see better earnings in near term
B
y Fiona Chan, Property Reporter

Home prices are peaking, sales are sliding, and property counters are among the stock market’s worst performers.
What’s a property investor to do?

Fortunately, there is still one safe haven, according to a recent report by Credit Suisse. It tips real estate investment trusts, or Reits, as a good bet for investors.

Reits turned in ‘decent results’ in the second quarter and should see better earnings in the near term, the bank said in its report.

Reits are listed funds that buy properties and collect rental income, which they distribute to unit holders like dividends.

Credit Suisse said three Reits, in particular, surprised with better-than-expected results: Mapletree Logistics Trust, Suntec Reit and CDL Hospitality Reit. But another three - Frasers Centrepoint Trust (FCT), Lippo-Mapletree Indonesia Retail Trust, and CapitaRetail China Trust - were disappointments, it reported.

The bank noted that quarter-on-quarter, office trusts delivered the strongest growth in terms of earnings, while hospitality Reits turned in the weakest performances.

On a year-on-year basis, retail Reits grew the most in terms of earnings and industrial ones the least.

Overall, CapitaCommercial Trust was the only Reit expected to grow by more than 20 per cent in terms of distribution per unit for both the current and next financial year, predicted Credit Suisse.

It also said it preferred large defensive Reits in the suburban retail and industrial sectors, particularly CapitaMall Trust and Ascendas Reit.

Another bank, Citigroup, also issued some positive calls on Reits last month.

It upgraded Suntec Reit to a ‘buy’, forecasting high yields of over 7.5 per cent. The trust’s results had come in above market expectations, boosted by strong rental renewals for its office and retail space.

Credit Suisse’s report marked a turnaround of sorts for the Singapore Reit sector, which was overcast with clouds as recently as three months ago.

Ratings agency Moody’s Investors Service issued in May a negative rating outlook for Singapore Reits, citing negative sentiment and short-term refinancing risks due to tighter liquidity. Some analysts followed up by downgrading or cutting their target prices for Reits on the back of rising interest rates.

Most Reits, however, have since managed to secure refinancing for their debt despite the global credit crunch. They are also now better bets than developers for their ‘recurrent income and more predictable cash flows’, Credit Suisse said.

Its report concluded that the debt profile of Singapore Reits had improved and earnings were expected to be resilient in the near term.

The bank warned, though, that risks of credit availability and high borrowing costs still exist, as do concerns over asset devaluation.

For now, though, asset values are still expanding and interest rates are expected to remain low, it added.

Source : Straits Times - 17 Aug 2008

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Mindy Yong

(+65)91002985

mindy@mindyyong.com