Developers weigh odds for launches after Ghost Month - Singapore

Developers weigh odds for launches after Ghost Month - Singapore

Some may want to test market now rather than risk deterioration in sentiment
By KALPANA RASHIWALA
(SINGAPORE) Some developers have been quietly oiling their launch machinery in the past few weeks as they get ready for previews and launches, especially with the Hungry Ghosts Month ending this Saturday.

Boulevard Vue’s facade will be designed by well-known Japanese interior designer Super Potato. The freehold project’s 26 apartments (one per floor) are about 4,500 sq ft each, while the two duplex penthouses occupying the top four levels are 8,000-plus sq ft and 11,000-plus sq ft. 
With the property outlook expected to worsen before it gets better, there may just be an incentive for some to launch their projects sooner - or wait it out till late-2009/2010, a seasoned property consultant told BT.

Another consultant, Knight Frank executive director Peter Ow, said: ‘Whatever name you call it - preview, private invitation, etc, the aim is for developers to test the market. If the response is sufficient at the price they want, they’ll begin sales. If the response isn’t up to what they want, they won’t sell. As a developer, you don’t want to risk launching a project, selling a few units and getting stuck.’

Projects that have begun to be previewed this month include Far East Organization’s 85-unit freehold Miro at the corner of Lincoln and Keng Lee roads (at an average $1,600 per square foot) and a 54-unit cluster housing project at Greenwood Avenue. Units in the 103-year leasehold development range from 3,000 to 3,700 sq ft.

Over at Nathan Road, Tat Aik Group has been inviting potential buyers to view Nathan Residences, a 91-unit freehold project priced at around $2,000 psf on average.

Keppel Land is also expected to release this weekend in Hong Kong and Singapore about 30-40 units under the next phase of Reflections at Keppel Bay.

The average price is expected to be similar to the earlier phase launched around April last year, at about $1,800 to $2,000 psf. Deferred payment is expected to continue to be offered.

Hong Fok Corporation’s 360-unit Concourse Skyline apartments at Beach Road, KepLand’s 56-unit freehold Madision Residence near the junction of Bukit Timah and Keng Chin roads, and City Developments Ltd’s The Arte at Thomson are understood to be other projects that could hit the market soon.

In the high-end segment - where sentiment is weakest - Far East Organization, which has already sold two units at its 28-unit luxury development Boulevard Vue at Cuscaden Road, opened its showflat for the project recently and is expected to step up marketing activity.

The project’s 26 apartments (one per floor) are about 4,500 sq ft each, while the two duplex penthouses occupying the top four levels are 8,000-plus sq ft and 11,000-plus sq ft. Prices for low- and mid-level units in the 33-storey freehold project range from $3,600 psf to $3,900 psf.

BT understands the price tag for the bigger penthouse will likely be around the $4,500 psf mark, working out to an absolute sum of about $50 million. If achieved, the absolute amount would set a new record for a penthouse in Singapore.

Boulevard Vue’s facade will be designed by well-known Japanese interior designer Super Potato. BT understands that the unit layouts will be customised to buyers’ preference.

A critical factor affecting developers’ launch decisions is pricing, given the bearish sentiment.

‘Pricing will be more realistic for fresh launches, but for projects released earlier, it would be difficult for established developers to trim prices without upsetting earlier buyers, especially VIPs,’ the seasoned property consultant said.

Agreeing, Jones Lang LaSalle Singapore’s residential head Jacqueline Wong said: ‘Such developers may just hold the remaining units in the project if necessary and have another shot at selling them upon the project’s completion. For new projects too, the financially stronger players can hold off developing for a while.

‘However, developers who are fairly new or need the cashflow will have to be realistic in their pricing and will be more amenable to negotiating with buyers.’

Another industry observer said that instead of outright price cuts, it may be easier for developers to attract new buyers into existing projects by offering furnishing vouchers, guaranteed yields (for newly completed projects) or arranging for attractive mortgage packages.

A mid-sized developer said: ‘We have to accept the fact that prices have to be marked to market; otherwise we can’t sell enough units to generate the required cashflow. For sites bought within the past 12 months, developers would need to sell at least 50 per cent of the development to generate sufficient cashflow to finance the project’s construction - taking into account high land price paid and rising construction costs, among other factors.’

 
Source : Business Times - 28 Aug 2008

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Suspensions of trade should be kept short: Singapore SGX

Suspensions of trade should be kept short: Singapore SGX

Companies under suspension incur expenses, delay cash return to investors
By WINSTON CHAI

(SINGAPORE) Extending the suspension of a company’s share trading is not doing shareholders and the market any favour, the Singapore Exchange (SGX) said in its regulator’s column yesterday.
 
‘If the suspended company is unable to find an investment within the timeframe granted, cash should be returned to shareholders who can deploy the funds or re-invest according to their preference.’
 
- Singapore Exchange 
 
 
According to SGX, a firm should keep its suspension as short as possible. As time elapses, it becomes more challenging for companies to acquire suitable assets as viable options would already have been exhausted.

‘A longer suspension is not necessarily helpful in the search for viable alternatives. Companies under suspension incur expenses, draw down on assets and delay the return of remaining cash to investors,’ SGX said.

‘Proposals hurriedly put together near the delisting deadline, in our experience, are unlikely to satisfy SGX listing criteria. The prolonged wait for shareholders would have been in vain,’ it added.

A firm’s share trading may be suspended if it is facing financial difficulty or if it is deemed to be a ‘cash company’ with no viable core business. In the first scenario, a business is given a maximum of 24 months to submit and implement its resumption proposals.

Cash companies, on the other hand, have 12 months to find a new business, and an additional six-month extension may be granted on some occasions.

 
 
‘If the suspended company is unable to find an investment within the timeframe granted, cash should be returned to shareholders who can deploy the funds or re-invest according to their preference,’ the regulator said.

SGX added that suspended firms hoping to resume trading through major acquisitions and reverse takeovers (RTOs) should be aware that their proposals will be subjected to the same stringent standards that apply to IPO (initial public offering) applications. ‘Otherwise, unqualified listing applicants may obtain listing status by acquiring suspended companies,’ it said.

In addition, it urged companies that are mulling RTOs to weigh it carefully against the option of returning cash to shareholders. This is because ‘RTOs often involve substantial dilution of shareholding level of the incumbent minority shareholders’, it explained.

‘For the reasons outlined above, the Exchange does not have strong grounds for granting extensions of time without clear signs of distressed and cash companies submitting viable resumption proposals,’ it concluded.

 
Source : Business Times - 28 Aug 2008

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Singapore firms top wealth-creation chart

Singapore firms top wealth-creation chart

They occupy 33 of leading 100 positions in Asean in a Wealth-Added Index; SingTel heads the pack
By GENEVIEVE CUA

(SINGAPORE) Singapore companies have done a stellar job of creating wealth for shareholders, despite market volatility and a higher cost of capital.

 
The first-ever ranking of the top 100 South-east Asian companies in terms of US-based consulting firm Stern Stewart & Co’s ‘Wealth Added Index’ (WAI) finds a total of 33 Singapore companies on the list, the largest number among Asean markets.

In pole position is Singapore Telecommunications, as at June 30. Keppel Corp is ranked seventh, and CapitaLand ninth.

Stern Stewart has also come up with the top 100 WAI ranking for Singapore alone, as well as industry specific rankings. In the regional real estate sector, for example, Singapore companies accounted for eight of the top 10, led by CapitaLand and City Developments.

WAI is a metric developed by Stern Stewart in 2000, based on the idea that companies create value for shareholders only if their total returns - share price plus dividends - exceed an imputed ‘cost of equity’. The latter is the minimum return investors should earn for taking on the risk of investing in shares.

The strongest testimonial to the use of the wealth added metric is Temasek Holdings, which on Monday released its latest annual report. Temasek uses wealth added as an internal benchmark, and that extends even to its staff compensation structure.
As Temasek explains: Wealth added (also called economic profit) factors in the capital employed to produce the returns and the risks associated with each investment. ‘To achieve positive wealth added, we need to deliver more than the capital charge, which is the risk-adjusted hurdle applied to the capital employed.’ In the year ended in March, the group’s wealth added was minus $6.3 billion. The group’s five-year cumulative wealth added was a ‘healthy’ $60 billion above its risk adjusted cost of capital hurdle.

Erik Stern, president international of Stern Stewart & Co, said the firm set up an office here in 1997 mainly to work with the Temasek group. The firm maintained its office here for about five years. It has since closed it, but is looking to re-establish itself in the region.

‘To people who want to know more about economic value added (EVA) and the value mindset, I tell them to read the Temasek annual report. There is nothing better. So many companies want to look like they care about shareholder value. Read any annual report, then read Temasek’s. There is a very big difference.

‘(Temasek) acts and lives it. We’re thrilled to be associated with them; they make us look good. They know what this is all about.’

Stern Stewart first developed two metrics in the 1980s, one of which is economic value added (EVA), focusing attention on the cost of capital. EVA is a performance metric, to indicate whether a company has produced value for investors. Its calculation takes after tax operating profit and subtracts an annual charge - a sort of rental charge - on debt and equity.

It is unclear how widely used EVA or wealth added is among Singapore companies. SingTel uses a different metric internally. CapitaLand, however, includes an EVA calculation in its annual report, and tots up the group EVA attributable to equity shareholders.

Mr Stern said the metrics were developed in an effort to overcome the limitations of other metrics, such as total shareholder return, which simply measures the change in a company’s price plus dividends between two points in time.

Accounting measures like net profits and sales also do not provide any benchmark for performance, or help in investor decision making. ‘The concept of EVA is like meritocracy; there is no cutting corners. The objective is to get employees to think and act like owners, so that they act like the money they’re given is their own. That concept is very similar to the Singapore mindset.

‘I believe there is no accident that Singapore companies’ performance is good. People here are very modest. They say, let’s see what happens in the future, and there will be a lot of competition..

‘It pays to remember that capital has a cost and shareholders deserve to earn a return on that. If Singapore companies forget that they may find that the paradise they created will be owned by others. As great as they’ve done, what matters is going forward.’

One point of contention may be the calculation for the cost of equity, which is based on a market’s government bond adjusted by a company and market risk premium. Some of Stern’s input data are taken from Bloomberg.

Managers, he said, should focus on EVA as an internal measure, and not the share price. ‘Companies that consistently make good decisions will see strong performance. The marketplace is showing some fear of the future. The question is what can companies do about it.

‘Companies that are well managed usually do well in a downturn and take market share from those that are not well managed.’

There are four drivers of wealth added, which are quantified in the rankings. These are operations; strategy or growth expectations; external financing and governance. The proxy for the latter is a company’s cost of equity.

‘Our view of governance is that managers must earn the required rate of return as the minimum. But if they don’t earn that, they have not been a good steward of capital.’

Source : Business Times - 28 Aug 2008

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Singapore Condo site near Circle Line station up for sale

Singapore Condo site near Circle Line station up for sale
 
By Fiona Chan, Property Reporter 
  

A LAND plot for a condominium has been made available for sale in Serangoon Avenue 3, next to the Lorong Chuan MRT Station on the new Circle Line.
Despite lacklustre activity in the private housing market, property consultants expect this 1.39ha site to be favourably received, given its choice location.

‘Although the current cautious mood and slow sale activity in the residential market have diminished developers’ appetite for development sites, there is a high probability that the site will be released for sale by tender because of its favourable location with good surrounding amenities,’ said Mr Nicholas Mak, director of research and consultancy at Knight Frank.

The plot is adjacent to Nanyang Junior College and near other schools such as St Gabriel’s Primary and the Australian International School. It is also close to Serangoon Gardens and the Chomp Chomp food centre, as well as the mega mall in the future Serangoon Hub.

Mr Mak expects site bids of between $83 million and $107 million, or $200 to $255 per sq ft (psf) of potential gross floor area.

Mr Ku Swee Yong, director of business development and marketing at Savills Singapore, was slightly more optimistic. He said bids could come in at about $130 million, or $300 per sq ft of potential gross floor area, based on an expected selling price of $850 psf for the finished units.

‘There are a couple of smaller developers who may be in need of land, and who may find this medium-sized mass market property suitable,’ Mr Ku said. A new condo on the site could host 350 to 400 units of 1,000 to 1,200 sq ft each.

The Government yesterday said the site was open for applications by interested buyers. If a developer submits a minimum acceptable bid, it will trigger a public tender for others to submit offers.

 
Source : Straits Times - 28 Aug 2008

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By-election: What works for S’pore

By-election: What works for S’pore 

In his speech opposing NMP Thio Li-Ann’s motion, Prime Minister Lee Hsien Loong explained the Government’s philosophy towards politics as one that emphasises the primacy of the party over that of the individual MP 
  

MR SPEAKER, Sir, I rise to oppose the motion. The issue of when to call a by-election has been discussed in this House several times over the years. Opposition MPs have raised it, including Mr Chiam (See Tong). Each time the Government has given a full explanation. Nevertheless, I’m grateful to Professor Thio Li-ann for having raised it again and giving the House the chance to debate it afresh with a fresh team of MPs, and giving me a chance to explain comprehensively the Government’s position on this matter.
Legal position

LET me first state the legal position.

Under the Constitution, the Government shall call a by-election, when a seat falls vacant. When does a seat fall vacant? In a single-member constituency, when the MP vacates his office, or dies, or resigns. In a GRC, when all the MPs in the GRC team vacate office.

But the timing of the by-election is the prerogative of the PM. He has full discretion and he is not obliged to call a by-election within any fixed timeline.

For a GRC, under the Parliamentary Elections Act, it’s explicitly stated that no by-election shall be called unless all members vacate their seats. If one member dies or resigns, or even two, or three, or four members, in a GRC which still has members left, legally no question of a by-election arises at all. Not even if the member is the minority member in that GRC.

I cite the law not to argue that that is what we should do, but because the law has a reason for (it being the way it is). It embodies the wisdom and experience of the way Singapore has worked and been governed.

I’m here not to argue constitutional niceties with a constitutional expert like Thio Li-ann or legal refinements with so many other eminent legal minds in this House, but just to set out the political realities of what works for Singapore.

Two models of parliamentary democracy

WHAT are elections for? As Hri Kumar pointed out, the elections are to choose democratic representatives of the people to form a government. There are two limbs to that - to elect the democratic representatives, and to form a government.

There are two different philosophies of elections, depending on where you put the weight on these two limbs.

The first alternative puts the emphasis on choosing candidates to become MPs. In other words, the MPs are the atoms and the rest are constructs built around the MPs.

Usually the MPs belong to political parties and they submit to party discipline, which is from the party whip. But once they have been elected into the House, that submission is voluntary. They can change parties without penalty. It happens from time to time in the British Parliament. Winston Churchill famously did it twice. And it has happened in this legislative assembly too before 1959.

In this model, if the MPs collectively withdraw support from the government and decide to regroup to form a totally new government with a totally different line-up, it’s their prerogative.

They don’t have to go back to the electorate. They don’t have to call new general elections, they don’t have to go back to voters for a fresh mandate.

So it’s parliamentary representative democracy but the voter doesn’t have the final say. The MPs have the final say.

And because the MP is the fundamental element of the whole system, if an MP dies or resigns, he has to be replaced. So a by-election has to be held promptly without delay. Countries like Britain have adopted this model.

There’s a second way we could realise a parliamentary democracy, a second philosophy by which we design the system. And that is to put the emphasis on choosing political parties, have political parties as the fundamental element in the system.

Parties will field candidates to contest in general elections. They have to be high-quality people with integrity, ability, commitment, drive, all the attributes which we look for in an ideal candidate.

But the candidate is not on his own. He carries the banner of the party. The symbol appears on the ballot paper. He identifies himself with the party’s manifesto, the programmes, the promises the party makes.

This is quite different from what happens, say, in Britain where candidates stand under their own names. No party symbol appears next to their name on the ballot paper because you’re electing the person, and once he’s in, he exercises judgment on your behalf.

In Singapore, where the MP represents a party and is elected on a party platform, once he’s elected, he is morally obliged to support the party he fought under.

You can have independent candidates, in every election we have a few, but the voters know that they have no party to form a government or to help them look after their constituents.

In this system, emphasis is on the ruling party delivering on its programmes and its promises. If the MP changes sides or is expelled from the party, he loses his seat because he no longer represents the party under whose banner he campaigned, under whose symbol he was voted in.

By the same argument, if a seat falls vacant mid-term, then the prime minister has full discretion as to when he wants to call the election, because the vacancy doesn’t affect the mandate of the government. This mandate continues until the next general election is called when the incumbent team will render account to the electorate.

Ours is based on this second model. It’s designed to do two important things. One, encourage voters to think very carefully when voting, because you’re not only voting for your representative, you are voting for the government in the country.

It is also designed to maximise the chances of a stable, effective government in between general elections. Whichever party wins, he gets a clear five-year term to govern and to produce results.

We chose this model deliberately. If you study the political history of Singapore, you will know why.

Before we entered Malaysia in 1963, there were no deadlines for by-elections under our Constitution for the self-governing state of Singapore. In Malaysia, we had to amend our Constitution to introduce the deadlines because the central government said you have to follow Malaysian practice. The rest of Malaysia has it, you must have it.

After Separation, we re-amended the Constitution to restore the status quo ante.

On Dec 22, 1965, MM Lee, who was then PM, explained fully, and he said:

‘Article 7 revokes a clause which was introduced into the state Constitution of Singapore when it entered Malaysia. Members in this House will know that there was no such injunction of holding a by-election within three months in our previous Constitution. We resisted this particular condition being imposed upon the state Constitution at the time we entered Malaysia, but our representations were not accepted because Malaysia insisted on uniformity of our laws with the other states in the federation and with the federal Constitution itself. Since we are no longer a party of the federal whole for reasons which we find valid and valuable as a result of our own experience of elections and of government in Singapore, we have decided that this limitation should no longer apply.’

Indelible experience

THE Government in 1965 had learnt from the indelible experience of the tumultuous years before independence. The instability in the Legislative Assembly during the David Marshall and Lim Yew Hock years before 1959, the tussles during the first PAP government, first when Mr Ong Eng Guan and two other Legislative Assemblymen crossed over and formed their own opposition party and then when 13 more assemblymen broke off and formed Barisan Socialis and stayed in the House leaving 26 to 25. And then one PAP minister, Ahmad Ibrahim, died, making it 25 to 25.

A House equally divided: a hair-raising period. Every time the Barisan Socialis moved a motion of no-confidence, the public and press galleries were packed. It was a spectator blood sport.

Therefore, when Singapore became independent, MM restored the law so that if any MP resigns or is expelled from his party, he has to recontest his seat.

Also, by-elections need not be held within any fixed time. The result: less buying or intimidation of MPs to switch sides. You can’t be bought because if you switch sides, you are useless. MPs cannot force by-elections at random, distracting the country from other more pressing concerns.

Therefore, we have stability. The public and the media are deprived of drama and suspense because stable government doesn’t make for exciting news. But Singaporeans are better off without the excitement of these heart-stopping events. This is a system which serves Singapore well whichever party is in government.

Events in Malaysia

THESE are examples from half a century ago but if you look around, it’s not hard to find more recent examples.

Take the current situation in Malaysia. I’m not passing any judgment on the merits of the political contenders. I’m not suggesting that our system would be better for Malaysia. They are a different society.

But look at what’s happening in Malaysia. MPs can change sides without resigning. If they resign, they can force by-elections within three months. That is why Permatang Pauh held a by-election yesterday, after the GE that was held on March 8 this year.

That’s how Mr Anwar Ibrahim is able to try to persuade MPs to cross over from the Barisan Nasional, because you can cross over without having to resign your seats.

On GRCs

GRCs, which according to Mr Siew Kum Hong are the meat of the motion, do not affect this political philosophy, this emphasis on the party as the key element of our system of parliamentary democracy.

Even if all six members of a GRC resign, minority, non-minority, the whole lot, it’s no different from six single members resigning from six SMCs.

It doesn’t change the principle that as long as a government has the confidence of the members of the House, it continues to govern.

Singaporeans know

I THINK Singaporeans understand this. They know that when they vote, they are not just voting for the man or the woman, they are voting for the party.

I would say that this is true not only of the PAP but also of the opposition parties. If you look at the 2006 GE, voters clearly voted along party political lines.

There is a clear ranking. Workers’ Party (WP) got about 35 per cent of the vote wherever they stood, the Singapore Democratic Alliance (SDA) got about 30 per cent of the vote wherever they stood, the Singapore Democratic Party (SDP) got about 25 per cent of the vote, wherever they stood.

Even unknown faces fielded by the WP received 35 per cent of the vote.

Why? Because they knew Mr Low Thia Khiang and they gave him some credit for his performance in Parliament, and for what he stood for and what the WP stood for.

This is how the system is meant to work. We have called by-elections in the past. The PM of the day has the discretion to decide when he wants to call, based on many factors. It could depend on the economic situation, on the current priorities, on political considerations, for example, the need for leadership self- renewal, political succession.

It’s just the same as the PM having the discretion when he wishes to call general elections, so long as he does so before the five years’ limit is up.

We have even called by-elections when there had been no vacancy. For example in Marine Parade GRC in 1992. All the MPs resigned and we brought in one new candidate, then-rear-admiral (NS) Teo Chee Hean.

From time to time, I expect that we will need to call by-elections again. Not right now.

For Jurong GRC there’s no requirement to call a by-election at all. But I am mindful that Jurong is one MP short and if for any reason I decide to call a by-election during this Parliament, Jurong is certainly one possibility which I will consider.

Laws tame power

PROF Thio argued that laws tame power, therefore discretion ought to be circumscribed by legislation. In theory, yes. But look at how constitutional systems have functioned all over the world and ask yourself whether you can find other constitutional systems which have worked better than the Singapore system.

Pakistan has had many Constitutions. Thailand has had many Constitutions. The Philippines has the most comprehensive Constitution. All the American constitutional safeguards, plus plus. Do we prefer to be operating like them?

Very few Third World democracies have worked. Ours has by adapting our system to our society and evolving in a radically different direction from the standard developed Western liberal democracy model.

When the Western liberal democracies look at us, they’re very unhappy because they can’t say that we’re completely an autocracy because there are elections, there’s popular support, there’s Parliament, the system works and it’s clean.

On the other hand, we’re not the way they are comfortable with, with systems which work like their own home arrangements.

Cognitive dissonance

AND so there’s cognitive dissonance. How is it this model works even though it is not our model? Hence I think we get slightly more than our proportionate share of flak in the international media. But it’s just one of those things, our karma which we live with.

This is how we’ve developed our system. We’ve factored in the fault lines and other weaknesses in our society so that we can elect a stable and good government, a government which has the time not only to set the right policies but also to implement them and to be judged on the outcomes.

And progressively we’ve made changes to the system over the years to achieve this.

We introduced GRCs which have proven their worth. If Ms Sylvia Lim moves her motion one day, we’ll have a fuller debate on them. It’s not bad because it’s the 20th anniversary of GRCs, it’s good for a debate.

We introduced Non-Constituency MPs to ensure a minimum number of opposition MPs, which is also not bad because otherwise Ms Sylvia Lim wouldn’t be in this House.

We introduced Nominated MPs to raise the level of debate and promote diversity of views. I think it has worked because with the NMP scheme, we’ve had two NMPs raise a serious motion and make two good speeches. We disagree with them but I think they have raised the standard of debate in this House.

So we will continue to evolve our system in order to make it work better for Singapore. Feeling our way across the river stone by stone always.

——————————————————————————–
The PM has full discretion as to when he wants to call the election, because the vacancy doesn’t affect the mandate of the Government. This mandate continues until the next General Election is called, when the incumbent team will render account to the electorate.

 
Source : Straits Times - 28 Aug 2008

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Singapore Condo’s MC chairman nabbed

Singapore Condo’s MC chairman nabbed 

Arrest followed ‘glued doors’ attack at two units this week; he’s now out on police bail 

By Chong Chee Kin 
  

THE chairman of the management committee at Laguna Park, recently hit by a spate of vandalism, was arrested this week on suspicion of gluing shut two residents’ apartment doors.
No charges were brought against Mr Lee Kok Leong, 61, who has since been released on police bail.

He could not be contacted yesterday despite several attempts to do so.

A resident who declined to be named said he was surprised by the news of the arrest as Mr Lee was well respected in the 530-unit East Coast condominium, whose residents are now split over a collective sale.

The resident said of Mr Lee: ‘Although he supported the en-bloc sale, he had claimed he was a victim - he said his mailbox was glued shut.’

The rift over the collective sale has turned ugly in recent months after several instances of vandalism against those opposed to the sale.

In the latest incident on Monday, two residents found their apartment doors stuck to the frames by glue.

Both live in Block E, and are against the sale.

In recent months, cars belonging to residents not keen on the sale were splashed with a corrosive liquid or paint, or scratched; mailboxes have also been found with glue in their keyholes.

Some residents were hit more than once.

One resident who found glue on the door to her apartment this week said she was worried that the culprits have accomplices, and did not feel safe.

To address the fears of residents like her, an extraordinary general meeting will be called in October.

Contacted yesterday, a spokesman for the management committee told The Straits Times that the purpose of the meeting was to find out where the residents stood on having closed-circuit television (CCTV) cameras installed.

‘The big question is whether they would be willing to pay. Everyone wants security, but who is going to pay for it in the end?

‘If they want a CCTV camera outside every unit, it would be very costly,’ he said.

The move was in response to the vandalism in the estate, he added.

The possibility of a collective sale of the units in this seaside estate arose last December.

Residents have until the end of this year to secure an 80 per cent vote to put it up for sale.

So far, 65 per cent have indicated their agreement to it.

Residents have been told by a property valuer that an average unit could be worth more than $2.1 million in a collective sale, and the penthouses, almost $4m.

Source : Straits Times - 28 Aug 2008

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Singapore Car numbers up despite driving costs

Singapore Car numbers up despite driving costs 

That’s because fewer cars have been scrapped, say traders 

By Christopher Tan, Senior Correspondent 
  
The LTA says part of the accelerated growth was because it had over-projected the number of cars expected to have been taken off the road this year. This would be corrected at a regular review next month. — ST PHOTO: FRANCIS ONG

SINGAPORE’s car population continues to rise, although higher fuel prices, parking charges and road tolls were expected to have put the brakes on growth.
According to the Land Transport Authority (LTA), there were 539,540 passenger cars here at the end of last month - 8.1 per cent more than at the same time last year.

In fact, the rate of growth is second only to last year’s record 9 per cent expansion over the 2006 population.

And this is despite the supply of certificates of entitlement (COEs) this year shrinking by 8.3 per cent, petrol prices rising by 30 per cent, overall parking charges climbing by more than 10 per cent and more than 20 new Electronic Road Pricing (ERP) gantries coming up.

Motor traders reckon the reason for the phenomenon does not lie in new cars, but in far fewer cars being taken off the road to be scrapped or re-exported.

Between January and last month, an average of 5,190 cars were taken off the road a month - 12 per cent fewer than during the corresponding period last year.

On the other hand, this year’s COE supply provides for 6,388 cars to be scrapped or re-exported a month - or 23 per cent more than the actual numbers removed.

Automotive Importers and Exporters Association president Neo Nam Heng said: ‘This has led to too many COEs, and too many new cars added to the road network.’

An LTA spokesman admitted that part of the accelerated growth in the first seven months was because it had over-projected the number of cars expected to have been taken off the road this year.

He said this would be corrected at a regular review next month.

Several motor traders expect COE numbers to shrink sizeably for the six months starting from October.

Said Jardine Cycle & Carriage chief executive (motors) Cheah Kim Teck: ‘There will be a cut so that the supply is more closely aligned with the actual numbers scrapped.’

He estimated that this year’s car COE numbers should hover between 80,000 and 85,000 - instead of the 96,200 allotted.

Mr Neo expects COE supply to be reduced by 20 per cent from October.

But others think that reductions will be made in smaller steps.

They point to the LTA’s statement made earlier this year that the annual growth rate of the vehicle population it allows would be halved to 1.5 per cent from next year - from 3 per cent a year since 1990.

Another reason not to react too drastically to the growing car population is the fact that motorists may be driving less. Signs of this include:
Fuel sales shrinking by 2.2 per cent to 3.916 million barrels in the first half.

Daily public transport ridership hitting a record 4.8 million rides in the first quarter.

Anecdotal evidence that it is now easier to find a carpark lot in the city.
Observers said these show that the Government’s move to lower upfront car taxes but raise levies based on usage, such as ERP charges, is working.

Businessman Leslie Chia, 43, said: ‘I still drive, but I plan my route a lot more carefully.’

 
Source : Straits Times - 28 Aug 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

House votes no change to by-election law

House votes no change to by-election law 

Motion vetoed 62 votes to 5 for giving unfair power to some MPs 

By Lydia Lim, Senior Political Correspondent 

PARLIAMENT yesterday decided against changing the law on by-elections.
The House voted down a motion filed by Nominated Member of Parliament (NMP) Thio Li-ann calling on the Government to affirm the principle of representative democracy.

It urged new laws to require a by-election should the minority member, or half or more members of a GRC slate vacate their seats mid-term.

Ten MPs joined in the four-hour debate, which saw Prime Minister Lee Hsien Loong set out the Government’s stand for the first time since the death of Jurong GRC MP Ong Chit Chung last month sparked debate on the issue.

As it stands, the Parliamentary Elections Act requires a by-election in a GRC only when all its members vacate their posts. It sets no deadline for such polls.

Yesterday, PM Lee explained why.

After Singapore became independent in 1965, the Government opted for an electoral system focused on political parties, not individual candidates.

MPs here cannot switch parties and still keep their seats. Neither can they resign to force by-elections at will, as their counterparts in Britain, India and Malaysia do.

That system has served Singapore well by ensuring stability, and a strong, effective Government, as it gives whichever party wins a timeframe of five years in which to deliver, Mr Lee said.

In this system, if a parliamentary seat falls vacant mid-term, the party steps in to take care of affected constituents.

‘The Prime Minister has the full discretion when to call a by-election because the vacancy does not affect the mandate of the Government, nor its ability to deliver on its programmes and promises,’ he said.

Even though the law does not require a by-election in Jurong GRC, Mr Lee said he was mindful that ‘Jurong is one MP short’.

‘If I decide to call a by-election during this Parliament, Jurong is certainly one possibility I will consider,’ he said.

Two MPs from the ruling People’s Action Party objected to the proposal that the departure of a GRC minority candidate should automatically trigger a by-election.

Mr Hri Kumar Nair (Bishan-Toa Payoh GRC) and Madam Halimah Yacob (Jurong GRC) said such a change would vest the minority member with extraordinary veto power.

MPs from the Workers’ Party, Ms Sylvia Lim and Mr Low Thia Khiang (Hougang), also registered their opposition to the motion. It sought to entrench GRCs, a system which their party had never accepted, they said.

Ms Lim suggested the motion be amended to call for the abolition of GRCs. But that change was deemed irrelevant and disallowed by the Speaker of Parliament Abdullah Tarmugi.

The House eventually voted against Dr Thio’s motion by 62 votes to five. Her fellow NMPs Loo Choon Yong, Eunice Olsen, Siew Kum Hong and Kalyani Mehta proved her staunchest supporters.

Prof Thio stood her ground but thanked the Prime Minister for his ’serious rather than summary’ response to her arguments.

Source : Straits Times - 28 Aug 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore Hotel for Sale - International Properties Sell Hotels Motel Worldwide

Singapore Hotel for Sale

Choosing a hotel for business purposes would give you a great deal for your money. It is because, in a country like Singapore, there are a lot of tourists, travelers, and also locals who are looking for some place to stay. And by that, you could gain a lot of profit from it, for as long as you manage it well.

In choosing a hotel to acquire or to consider purchasing for business, you must bear in mind its accessibility to the people, public transportation and other services. It should also be affordable yet efficient and comfortable.

In Singapore, Hot Victory real estate agent marketing that can offer you 3 to 5 Star hotels for sale. These hotels range from 8 to 38 stories with 58 to 508 rooms, with full facilities and amenities. That real estate agent company marketing can assist you in recommending bankers, lawyer, and hotel management companies. They will pick you up at Singapore International Changi Airport for viewing without obligation.

These commercial and industrial property services and agents offer real and comprehensive real estate property listings of office, land, factory, warehouse, retail pace, building, hotel, restaurant, coffee shop and food court available for sale or rent. If you have plans of purchasing, selling or renting your commercial properties like hotel in Singapore, it is suggested that you hire the services of a reliable real estate agent. At times, owners don’t consider the list of these Hot Victory real estate agents on their list when they want to go on sale, rent or lease their properties.  Mindy Yong will help the owner to market his property with maximum exposure and commitment.

 It is also recommended that if you want to invest in hotel sales in Singapore, be sure that you understand all the pitfalls before you sign the deal. This would help you to avoid legal or financial tangles during and after the transaction. You should find Mindy Yong who is common with your preferred location and the nature of property you have in mind. Discuss your requirements with Mindy Yong and let her know your preferences in details. In this way, this will help her get the right decisions and serve you in a professional manner.

Keep in mind that real estate transaction is a legal binding contract.  Thus, just like any other contract, one must first ensure eligibility to buy or sale a property. It is not that easy to just buy or sale property in Singapore especially if you are a foreigner. There are certain restrictions to buy Singapore properties. Only a knowledgeable real estate agent can help you avoid legal difficulties.

Best deals in hotel sale in Singapore also lies in your best choice of agent that will help you find prospective buyers.   Singapore, one of the most developed countries in Asia shows lots of probabilities to find success in every business ventures, even in hotel and business management.  Browse the Internet and you will find lots of hotels that are for sale in Singapore and these tips are just one of your tools to find great deals.

 
Buy Sell Rent Invest Singapore Property
 
Mindy Yong 杨雯诗

Tel: (+65) 91002985

Fax: (+65) 64021826

mindy@mindyyong.com ( email me )