50 per cent more in Growth Dividends and utility rebates - Singapore

50 per cent more in Growth Dividends and utility rebates - Singapore

Extra grants to help public cope with inflation and uncertain economy

By Goh Chin Lian

The extra grants by the Government are to help Singaporeans cope with the higher-than-expected inflation and uncertain economic outlook, PM Lee said.

SINGAPOREANS will receive 50 per cent more in Growth Dividends cash in October.
In addition, families living in HDB flats will get 50 per cent more in utility rebates in November.

The extra grants by the Government are to help Singaporeans cope with the higher-than-expected inflation and uncertain economic outlook, said Prime Minister Lee Hsien Loong when he gave his English speech at the National Day Rally.

His announcements were greeted by loud applause from the 1,700 grassroots leaders, politicians and other guests attending the Sunday rally at the University Cultural Centre.

In all, they will cost the Government $256 million, he added.

This new move, Mr Lee indicated, is yet another assurance to low- and middle-income families that the Government is aware that they are feeling the pinch of costlier food, fuel and electricity.

It had spotted the signs late last year and came up with a $3 billion aid package earlier this year. The package includes the Growth Dividends produced from this year’s huge Budget surplus and the Utilities-Save (U-Save) rebates, which were introduced last year for annual distribution over five years.

With the latest additions, a Finance Ministry statement yesterday said a low-income family with elderly members living in a three-room flat will get $500 more, bringing their total benefits from the Government to over $5,400 this year.

A middle-income family living in a five-room flat will get $200 more, or about $3,880 altogether.

The extra help is timely, said community leaders like Mr Koh Poh Kwang, chairman of the citizen’s consultative committee in Whampoa. He said some residents in three-room and rental flats have trouble making ends meet.

‘They will come with their town council letters or Singapore Power bills, showing they are many months in arrears. With their big families, they find it difficult to live on a monthly income of $1,000-plus,’ Mr Koh said.

In the lead-up to the announcements, PM Lee set out the state of the economy, saying conditions are more difficult this year largely because of the high food and fuel prices.

The economic turmoil in the United States and Europe has begun to drag down Singapore. Its exports have declined, tourist arrivals slipped and restaurant takings dipped.

But, he was quick to add: ‘I’m not predicting a crisis’, noting that investors still want to come here. Also, the pipeline of projects Singapore attracted in the good years earlier will keep the economy humming, Mr Lee added, citing the F1 Grand Prix and the Integrated Resorts.

Although he reiterated that Singapore can expect to grow by 4 to 5 per cent this year, he urged the people to be psychologically ready in case of trouble.

‘But we also must be on our marks, so when the global economy recovers, we can bounce right back,’ he added.

For now, the hot-button issue is the cost of living, he said, as he sought to explain what is within the control of the Government - and what is not.

Inflation is not. It is a worldwide problem. To make his point, he flashed a series of slides showing people in France, Spain, Indonesia, Pakistan and the Philippines agitating against their governments over higher prices and rice shortages.

In contrast, Mr Lee flashed a slide showing Senior Minister of State (Trade and Industry) S. Iswaran inspecting a stockpile of rice. Smiling broadly, he said: ‘Fortunately in Singapore, we have plenty of rice. So you don’t see riots.’

Appealing to Singaporeans to ‘react rationally’ to this emotive issue, he said: ‘We can’t prevent prices from rising in Singapore.’

He used the example of fuel prices. First, Singapore imports all its fuel. So world prices dictate Singapore prices. Put simply, he said, oil producers such as the Russians and the Arabs get richer while oil consumers like Singapore get poorer.

Second, the Government here cannot go the way of other governments that hand out fuel subsidies. Even oil producers such as Malaysia, Indonesia and China cannot sustain these costly measures.

What the Government can do is to help Singaporeans directly through measures like the utility rebates which, for families in small flats, can pay for three to six months of their power bills.

Mr Lee also dwelt on the complaints of middle-income Singaporeans, assuring them that they had not been forgotten.

He ticked off the many benefits they have received, including the Growth Dividends, polytechnic and university bursaries as well as top-ups to the post-secondary education accounts for their children’s studies here.

‘But overall, our most important strategy to help the middle-income group is to keep our taxes low,’ he said.

Their tax rate is lower than in most countries. On top of that, they got a 20 per cent rebate this year, he added.

But there is a limit to all these help measures, he cautioned, saying that the best way forward is to keep the economy competitive and raise people’s standard of living.

Source : Straits Times - 19 Aug 2008

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Worrying tripling of demand for Singapore rental flats in one year

Worrying tripling of demand for Singapore rental flats in one year

By Jessica Cheam

THE sharp increase in the number of people seeking Housing Board (HDB) rental flats - it has tripled in just a year - has become a cause for concern, said Prime Minister Lee Hsien Loong.
Calling it a ‘worrying trend’, he said such cases made up the bulk of those seen at weekly meet-the-people sessions.

The HDB is building more flats to meet demand, but Mr Lee urged people who are not really in need to look for alternatives like renting a room on the open market or moving in with their children.

He cited an example provided by the HDB of a 60-year-old woman with three children - two living in private property - who applied for a rental flat.

The children wrote to the HDB saying: ‘Don’t worry, we will jointly hire a maid to look after our mother. Please can she have a rental flat?’

While acknowledging that families must have their problems to ask for help, Mr Lee said that for this particular group, ‘rental flats are not the right solution’.

Other viable alternatives include downgrading to a smaller flat or moving into a studio apartment.

Elderly folk can also opt for the recently launched lease buy-back scheme to monetise their flats instead of selling up and joining the rental queue.

The initiative enables owners to sell the tail-end of their flat lease to the HDB. The proceeds then go to a CPF Life annuity, which will make monthly payouts.

Mr Lee said the growing demand for rental flats is one of the ‘wider needs of the public’ noted by MPs, with some having flagged the issue in Parliament.

National Development Minister Mah Bow Tan said that HDB will increase its supply of 42,000 flats by 20 per cent. It is also reviewing its eligibility scheme.

This is so ‘we can keep it an effective safety net for the people who need this, this minority of genuinely needy families who have not only no income but also no assets and also no family support’, said Mr Lee.

Aljunied GRC MP Cynthia Phua said Mr Lee rightly pointed out that old folk should be cared for by their family.

‘There’s no straightforward solution to this situation,’ she said.

Even studio flats are over-subscribed, she said, adding that the situation will ease when more flats come on the market from the HDB’s building programme.

Source : Straits Times - 19 Aug 2008

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S’pore govt to spend S$700m more on pro-family measures

S’pore govt to spend S$700m more on pro-family measures

By Margaret Perry,

SINGAPORE: The Singapore government plans to spend an additional S$700 million a year on measures to boost its flagging birth rate. Currently, it spends about S$900 million a year.

Prime Minister Lee Hsien Loong said in his National Day Rally speech on Sunday night that a baby brings much joy, but can also be a logistic and financial challenge, so a slew of measures will be implemented by the government to create more time and more funds to help parents cope with their children.

Paid maternity leave will be extended from 12 weeks to 16 weeks, and the extra four weeks can be taken anytime during the baby’s first year. It was previously extended from eight to 12 weeks in 2004.

There will also be a larger baby bonus for first-time parents, more tax incentives to encourage mothers to work, more incentives for the fifth and subsequent children, and more financial support for couples who go for In-Vitro Fertilisation (IVF) treatment.

On top of that, Mr Lee said parenting is not just the mother’s responsibility.

“I used to change nappies, in the days before Pampers. So you’ve actually got to fold the cloth, you’ve got to put it on, you’ve got to put the safety pin, I haven’t pricked any baby yet. If I can do it, that means anybody can do it,” he quipped.

Emphasising that parenting is a job for both parents has influenced some policy changes which he hopes will help to shift attitudes. Childcare leave, which can be claimed by either parent, will be extended from two to six days per year.

There will also be one week of unpaid infant-care leave per year, and mums or dads can claim it until their child turns two years old.

Mr Lee acknowledged that professional women find the cost of not working the highest, and he cited his own mother’s work-life choices.

A successful lawyer, Mrs Lee Kuan Yew chose to put her children first, took on fewer cases, avoided evening work functions and ate lunch at home every day with her children.

He said having children is a personal choice, and parents have to decide their own priorities.

The government will help by catering to demand and creating 20,000 places at 200 new childcare centres over the next five years. There will also be more financial support to help kindergartens upgrade their staff and curricula, as well as more financial help for parents.

Mr Lee said: “These measures all add up to a very significant package. We are talking of about maybe S$700 million a year. If more babies are born, it will be more than S$700 million a year. But even that is about double of what we are spending today on child incentives and all together we will have about S$1.6 billion spent a year or 0.6 per cent of GDP.”

For many people in Singapore, getting married is the first priority. Mr Lee said the government would do what it could to help, but urged young Singaporeans not to leave it till it is too late and to make time to go out, meet new friends and if necessary, join a dating agency.

Mr Lee also spent some time sharing humorous stories from the feedback he received from dating agencies, including unrealistic expectations and poor social graces.

He announced that the government will merge the Social Development Unit (SDU) which caters to graduates, and the Social Development Service (SDS) for non-graduates to increase matchmaking flexibility and activities.

SDU will also come up with an SDU Trust Mark to ensure that those who prefer using private dating agencies will get quality service.

- CNA/so

Source : Channel NewsAsia - 19 Aug 2008

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S’pore to ease ban on political videos, public demonstrations

S’pore to ease ban on political videos, public demonstrations

By Imelda Saad,

SINGAPORE: Political engagement in Singapore is set to change with the advent of new media.

Prime Minister Lee Hsien Loong acknowledged this as much and said the government will have to adapt, get used to it, and turn it to positive effect.

Hence, the government will ease up on the ban on political videos and outdoor public demonstrations, he said at his National Day Rally on Sunday night.

The new-generation Singaporeans, weaned on the likes of Facebook and YouTube, are getting news off websites and discussing issues online.

“By the next GE (General Election), 5 years will have passed. Cyber years are like dog years. One year in cyberspace equals to 7 years in real life,” Mr Lee said. “That’s the pace at which things change. So 5 years times 7 means 35 years in the real world.”

Mr Lee even conceded that his National Day Rally has become a multi-media event.

To show this, he took out a mobile phone and proceeded to film the audience before him in the auditorium. Behind him, on a giant screen, the audience saw themselves featured on the Web page of the Prime Minister’s Office - live.

“There you are, simple as that. I’ve just made our first non-political video,” he said to laughter from the audience.

And since anyone can do this anytime, anywhere, Mr Lee said an outright ban on party political films is no longer sensible.

But there will still be safeguards.

“Some things are obviously alright - factual footage, documentaries, recordings of live events. But I think some things should still be off limits… (for instance) if you made a political commercial so that it’s purely made-up material, partisan stuff, footage distorted to create a slanted impression,” he said.

Unlike the last General Election, podcasts, videocasts and election materials will be allowed. But those who upload such material online will have to maintain accountability and responsibility.

The Advisory Council on the Impact of New Media on Society - led by former Singapore Press Holdings editor-in-chief Cheong Yip Seng - will set out its recommendations on these issues later this month.

The restriction remains for outdoor demonstrations, but Mr Lee said the government needs to find ways to allow Singaporeans to express themselves safely.

He said Singapore will allow outdoor public demonstrations at the Speakers’ Corner, a public space for free speeches. This is as long as the demonstrators adhere to basic rules of law and order, and stay away from issues of race, language or religion.

The government will manage the liberalisation with a light touch, said Mr Lee. So there is no need for the Police to be involved. In fact, the NParks will manage the Speakers’ Corner, instead.

Mr Lee said: “The overall thrust of all these changes is to liberalise our society, to widen space for expression and participation. We encourage more citizens to engage in debate, to participate in building our shared future.

“We will progressively open up our system even more. If you compare today with 5 years ago, 10 years ago, it’s much more open today.”

Even then, Singapore cannot progress just by copying others. Mr Lee said the country must find the right path for itself.

- CNA/ir

Source : Channel NewsAsia - 19 Aug 2008

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Singapore Government to provide more help to cope with rising costs

Singapore Government to provide more help to cope with rising costs

By Nicholas Fang,

SINGAPORE: The rising cost of living was highlighted as the hottest issue for Singaporeans by Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday night.

And he took time to explain what the government is doing to help Singaporeans cope with rising costs.

Singapore imports most of its food and fuel, making it difficult to remain unscathed from the effects of global inflation.

Mr Lee noted that Singapore has been spared protests over high prices that have affected other countries. While S$3 billion had already been allocated to help Singaporeans in this year’s Budget, inflation has turned out to be higher than expected.

“So we have decided to do more. The second instalment of growth dividends, due on October 1, will increase by 50 per cent. We will also increase this year’s U-save rebates by 50 per cent,” he said. This will result in an extra S$250 million of financial assistance.

Road tax and car ownership charges have also been lowered to help the middle-income segment. While the recent increase in ERP charges have created some unhappiness, the overall cost of owning a car has actually come down.

The government will also review the HDB rental flat scheme to ensure that genuinely needy families have an effective safety net. While more Singaporeans have applied for such rental flats, Mr Lee noted that not all were truly in need.

He said: “One applicant was a 60-year-old lady with three children – two of whom are living in private properties. Her children told HDB they were prepared to hire a maid to look after their parent in the rental flat!”

And while the government’s efforts will ease the pinch, Mr Lee said they are not the answer to Singapore’s economic problems.

“The best solution is still to keep the economy competitive, become more productive and so earn more for ourselves. Then we can raise our standard of living despite the increase in oil and food prices,” the prime minister said.

He said by doing so, Singapore will be well-poised to bounce back once the global economy recovers.

- CNA/so

Source : Channel NewsAsia - 19 Aug 2008

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Singapore Government to give out S$256m more in benefits to Singaporeans

Singapore Government to give out S$256m more in benefits to Singaporeans

By Hasnita A Majid,

SINGAPORE : The average Singapore household will receive an extra S$250 to S$330 following the additional support package announced by Prime Minister Lee Hsien Loong at the National Day Rally on Sunday night.

This is on top of the benefits they are already receiving to help them cope with inflation and higher living costs.

Details of the additional support package were released by the Ministry of Finance on Monday.

The enhancements comprise a 50 per cent increase in the remaining instalment of Growth Dividends which is scheduled for payout on October 1, as well as a 50 per cent increase in Utilities-Save (U-Save) rebates given out.

Lower and middle-income groups, as well as senior citizens, can expect more in Growth Dividends.

For example, a person living in a one-, two-, or three-room flat who received S$200 in the first round of payout will receive S$300 in October.

Overall, most Singaporeans living in public housing households will receive between S$75 and S$150 more as a result of the enhancement.

The enhanced Growth Dividends will cost the government an additional S$190 million.

As for the increase in Utilities-Save or U-Save rebates, this will range from an additional S$40 to S$110 depending on the HDB flat size.

A low-income family with elderly members living in a three-room flat could receive an additional S$500, bringing their total benefits this year to over S$5,400.

A typical middle-income family living in a five-room HDB flat could receive benefits of about S$3,880.

These additional U-Save rebates will cost the government S$66 million.

Altogether, the government will be distributing an additional support package amounting to S$256 million.

Source : Channel NewsAsia - 19 Aug 2008

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Singapore PM Lee says YOG will put Singapore’s social graces to the test

Singapore PM Lee says YOG will put Singapore’s social graces to the test

By Hoe Yeen Nie,

SINGAPORE: Apart from bread-and-butter issues, Prime Minister Lee Hsien Loong also spoke about the need to create a more gracious society in his National Day Rally speech on Sunday night.

He said Singapore’s social graces will be put to the test when the country hosts the Youth Olympic Games in 2010.

Some of the pet peeves of Singaporeans such as jaywalking and stealing cabs were captured on video and sent to a competition organised recently by MediaCorp. But thanks to Singapore’s many campaigns, Mr Lee said things have improved over the years.

“Sometimes people laugh at us. But actually these are things we can work on and improve. And if we make people aware of their behaviour and conscious of their impact on others, we can educate them and gradually they can learn new habits,” he said.

Major events, such as the ongoing Beijing Olympics, have provided opportunities for host countries to work on their Ps and Qs.

Likewise, said Mr Lee, the upcoming Formula One night race, Asia-Pacific Economic Cooperation next year and the Youth Olympic Games in 2010 will give Singaporeans a chance to showcase their spirit and warmth.

Singaporeans had already shown what they could do when they rallied together to support their country’s bid for the YOG.

According to a survey, one thing Singaporeans are good at is saying ‘thank you’ after being served. But what we don’t seem to do enough of is clearing tables and returning food trays. Mr Lee said more work is needed to get rid of these bad habits, especially as the country prepares itself for 2010.

The prime minister said Singaporeans should move towards a permanent shift in social behaviour, so that the city becomes more liveable for all.

- CNA/so

Source : Channel NewsAsia - 19 Aug 2008

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Singaporeans appreciate Singapore PM Lee’s comprehensive speech

Singaporeans appreciate Singapore PM Lee’s comprehensive speech

By May Wong,

SINGAPORE: Longer maternity, childcare leave and better baby bonuses are some of the announcements that got Singaporeans sitting up at the National Day Rally on Sunday night.

They said the pro-family measures showed the government’s strong commitment to encourage couples to have more children.

Gurcharanjit Singh, a lawyer, said: “It’s a change in mindset, and I think if the message is something that’s very well understood and very comprehensive, it’ll start people thinking and having more kids.”

“There are also some women, who have made the decision to stay at home, just like my wife, who’s my home anchor. And I would have loved to see some things (done) for them,” said Donald Aw, a civil servant.

Norhayati, a personal assistant, said: “He’s encouraging people to get married and he’s giving out more bonuses and everything, so I guess it’ll probably wake some of the singles up.”

MP for Tanjong Pagar GRC, Indranee Rajah, said: “For the first time, you get a sense that these measures are taken on board as a result of direct input from the women who know what the challenges are and what some of the proposed solutions would be.”

But it was not just baby talk that caught Singaporeans’ interest. The prime minister’s use of technology throughout his speech also impressed many.

“We need to ensure that the young are with us. So it’s not just about technology. Technology is a medium, but we need to use whatever medium we have to let the people understand the issues,” said Senior Minister of State for Foreign Affairs Zainul Abidin Rasheed.

Hong Chun Mun, a national serviceman, said: “It reflects he’s very technologically savvy and he’s in tune with what the young are feeling.”

Many Singaporeans felt that Mr Lee gave a very comprehensive speech and they were glad he did not shy away from hotly debated issues like the Electronic Road Pricing (ERP).

Some also added that the speech gave them a sense of hope for the future.

- CNA/so

Source : Channel NewsAsia - 19 Aug 2008

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95% of S’pore F1 tickets sold

95% of S’pore F1 tickets sold

By Patwant Singh,

Workers assemble seats of Spore’s street circuit where the pit building & Singapore Flyer can be seen in the background.

SINGAPORE : Ninety-five per cent of the Singapore Formula One (F1) tickets have been sold, and organisers are expecting all tickets to be snapped up before the race begins in September.

Charities will also benefit from the inaugural night race. The Singapore Grand Prix announced that F1 drivers and other celebrities will be attending a luncheon at the Istana.

The event on September 26 will be hosted by President SR Nathan. About S$1 million is expected to be raised from the event, which will feature a silent auction for limited edition watches and other F1 memorabilia.

Teo Hock Seng, chairman of the Singapore Grand Prix, said: “Being a night race, we’ll have the official lunch because of the timing. And Bernie Ecclestone (president and CEO of F1 Management and F1 Administration) has fortunately agreed that the top drivers and members of the 10 teams will be (invited) to the lunch.” - CNA /ls

Source : Channel NewsAsia - 19 Aug 2008

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Atrium, Crosby sales among top 5 Asia-Pac deals in Q2

Atrium, Crosby sales among top 5 Asia-Pac deals in Q2

But DTZ says S’pore commercial property sales in Q2 fell 24% from Q1

By KALPANA RASHIWALA

INVESTMENT sales of property in Singapore slowed in the second quarter of this year, but the sales of The Atrium @ Orchard (US$617 million) and 71 Robinson Road (on the former Crosby House site) for US$547 million made it to the list of top five commercial real estate deals in the Asia-Pacific region in the second quarter of 2008, according to DTZ Research’s Q2 2008 Asia Pacific Investment Brief.

No 4 ranking: The Atrium @ Orchard’s US$617 million price tag was dwarfed by Tokyo’s Resona Maruha Building, Shinsei Bank Building and Shanghai’s The Centre
Total transaction value of commercial real estate across Asia-Pacific was about US$19.6 billion in Q2, a decrease of over US$2 billion or 10 per cent from Q1 2008 and down a bigger 43 per cent or almost US$15 billion from the peak in Q3 last year, DTZ’s numbers showed.

With the global economic outlook remaining uncertain, transactional activity in the region is expected to stay subdued. However, with many international investors looking to Asia as the engine of growth over the next 18-24 months while the US and European economies slow, this should ensure that capital continues to flow into the region to supplement the already-high levels of liquidity and equity that exist in many markets in Asia-Pacific, the property consulting group said.

‘Those economies that are the most open and have the greatest exposure to markets in the US and Europe are likely to be most affected,’ DTZ said.

Transaction values in the four largest markets of Tokyo, Singapore, Hong Kong and Australia have dropped markedly over the last three quarters from a peak of over US$27 billion in Q3 last year to just under US$15 billion in Q2 2008.

‘We are unlikely to see the significant decline in activity or values that have been seen in other markets around the world, most particularly in the US and UK, although there could be isolated incidents within Asia-Pacific.’

- DTZ

For the Asia-Pacific region as a whole, DTZ noted that despite declines in transaction values, activity is still well above the long-term average for the region. It is expected to remain so through this year as investors remain committed to increasing their exposure to Asia-Pacific,’ the report said.

As the global economic outlook remains uncertain, DTZ expects transactional activity to remain subdued. ‘However, we are unlikely to see the significant decline in activity or values that have been seen in other markets around the world, most particularly in the US and UK, although there could be isolated incidents within Asia-Pacific,’ DTZ added.

The US$1.5 billion sale of Resona Maruha Building in Tokyo was the biggest transaction in the Asia-Pacific in Q2 2008, followed by the US$1.1 billion sale of Shinsei Bank Building (BR), also in Tokyo. In third position was the deal for The Centre in Shanghai (US$639 million), followed by The Atrium @ Orchard and 71 Robinson Road in Singapore.

DTZ’s numbers on commercial real estate cover office, retail, industrial, mixed-use, healthcare, educational property and infrastructure such as carparks.

For Singapore, the value of such real estate transactions fell 24 per cent from $5.9 billion in Q1 2008 to $4.5 billion in Q2.

CB Richard Ellis executive director Jeremy Lake said that investment sale deals in the Singapore commercial property sector (office and retail) for the second half of this year will likely be less than the level achieved in the first-half.

‘Even though there are quite a number of property funds and institutional investors with money to spend, the volume of deals is slowing down,’ he said. ‘In the retail property sector, traditionally the deal flow has been poor as there have been few sellers. In the office sector, there are some sellers, but there’s often a price gap of 10-20 per cent between buyers and sellers.’

Buyers of Singapore office blocks have been adopting a more cautious stance more recently due to a combination of concerns over an increase in supply as major office developments are completed from 2010 onwards and an element of uncertainty over whether companies will continue to expand at the same pace, Mr Lake added.

Source : Business Times - 19 Aug 2008

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