Five things today’s employees want

Five things today’s employees want

By Elizabeth Wilmot

SINGAPORE companies have been urged to be more creative in the way they go about retaining top talent.

Employees are now more demanding in what they want in a job, and are willing to switch jobs to achieve this, said Mr Don Lindner, manager of the practice leadership arm of WorldatWork, a professional human resources association.

He said firms have to look at a ‘total reward strategy’, made up of five factors - compensation, benefits, work-life balance, performance and recognition, and development and career opportunities.

Failure to meet changing needs of workers would lead to companies losing their top talent, he warned.

‘Companies have to offer more and more in order to keep these workers. These total rewards would be very important to Singapore,’ he said.

‘With the current global abundance and local scarcity of talent, an organisation’s ability to attract, motivate and retain will emerge as the primary indicator of fiscal performance and survival.’

Mr Lindner said Singapore faced problems in attracting and retaining top talent, which was a particularly acute problem, given the shortage of talent in some sectors here.

‘Singapore has some unique challenges. You’ve got a very vibrant economy, but an imbalance in terms of labour shortage,’ he said, referring to the ageing population here - underscored by the Government’s call for more babies.

Combined with the changing needs of employees today, who are looking for more than just compensation and retirement stability, firms are finding it a challenge to retain good staff.

He said employees have changed their mindsets, and are looking more to job development and self-fulfilment, rather than long-term stability. They are not afraid to switch jobs in order to meet those needs, he said.

Looking abroad, Mr Lindner said he was opposed to some elements of the recent bailout of financial institutions passed by the United States Congress.

The bailout includes provisions in which chief executives would be held to strict restrictions on compensation, with a prohibition on ‘golden parachutes’, that is big payments upon departure. Also executive compensation exceeding US$500,000 (S$730,500) will not be tax-deductible.

‘Whenever you arbitrarily cap anything, it doesn’t work,’ he said, adding that at times of financial crisis, top talent are needed the most and capping compensation and benefits would not help to attract and retain them.

Instead, he suggested a deferring of contingent payments like stock options for a period of two years, to ensure they earn their pay and do not simply take the money and leave.

Source : Straits Times - 16 Oct 2008

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YTL launches posh villas in Singapore Sentosa Cove

YTL launches posh villas in Singapore Sentosa Cove

YTL’s Sandy Island villas start at $13.9 million and go up to $26 million.

MALAYSIA-BASED YTL Corp is defying the global financial turmoil by launching the sale of its 18 posh houses in Sentosa Cove.
The Sandy Island villas all have five bedrooms and boast master suites that occupy the entire second floor as well as a swimming pool, private berth for a 12-metre boat, basement garages big enough for two luxury cars and passenger lifts.

Prices start at $13.9 million and go up to $26 million. This works out at $2,000 to $2,600 per square foot.

They are designed by Italian architect Claudio Silvestrin, acclaimed for such commissions as the 26 Giorgio Armani flagship stores around the world. Australian landscaper Jamie Durie was also involved in designing the plots, which range from 7,000 to 10,000 sq ft.

‘There are still buyers out there willing to pay this kind of money for a property seen as a collectible,’ said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore, the project’s marketing agent.

YTL had reportedly planned the launch for the start of this year.

It said it has already sold three of the 18 houses at prices ranging from $13.9 million to $18 million to ‘a good mix of local and foreign buyers’.

YTL said it may hold roadshows overseas, depending on the market performance in the next few months.

It is believed to have marketed the development in Hong Kong a fortnight ago but failed to attract any buyers.

Sentosa Cove homes were considered sure bets but the luxury market boom has subsided this year and condo prices in the area have declined.

Property experts commenting on the release of Government monthly sales data yesterday said buyers continue to avoid high-end homes.

‘With the deepening financial crisis, the growth in Singapore’s foreign population, particularly the expatriates, could slow down in the coming quarters,’ said Colliers International’s director for research and advisory, Ms Tay Huey Ying.

International investors, spooked by the financial storm, are largely expected to remain cautious so prices of high-end homes are expected to continue to slide in coming quarter, by up to 5 per cent, she added.

Source : Straits Times - 16 Oct 2008

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Singapore Private home sales set to stay subdued

Singapore Private home sales set to stay subdued

376 units sold in Sept - up from 325 in August but down from 902 in July

By Joyce Teo, Property Correspondent

SALES of new private homes are likely to stay subdued for the rest of the year with last month’s numbers reflecting the gloomy sentiment.

Developers sold 376 private homes last month, up from 325 in August but down from 902 in July, according to Urban Redevelopment Authority data out yesterday.

This puts private home sales in the first three quarters at 3,890 units, compared with 14,811 units for last year.

September sales were driven by new launches with 767 units released, up significantly from just 194 in August, when many players and buyers kept away due to the Hungry Ghost Month, said experts.

Sales have remained poor partly because developers have opted for smaller price cuts by absorbing stamp duty, for instance, said Mr Colin Tan, head of research and consultancy at Chesterton Suntec International.

CBRE Research executive director Li Hiaw Ho noted that there is still no broad-based decline in home prices based on last month’s sales, with just a slight easing in Bukit Timah and Newton.

However, given that Singapore is already in a technical recession and with the uncertainties ahead, price pressure is expected, experts said.

CBRE expects a further fall in overall home prices of 2 per cent to 4 per cent in the last quarter.

‘Prices should reflect fundamentals or else the gap between actual versus fair value will widen,’ said Mr Tan. If the gap continues to widen, conditions will build up to a point where a sharp price correction is inevitable.

‘In a sharp price correction, everyone loses as panic sets in and sometimes prices go below fundamentals,’ he added.

Colliers International’s director for research and advisory Tay Huey Ying said supply will weigh on prices as the stock of unsold units is accumulating as sales fail to keep pace with launches.

There was a take-up rate of just 31 per cent last month with an estimated 234 out of 767 launched units sold, she said.

Luxury properties remain out of favour with only modest sales achieved and none above $4,000 per sq ft (psf), compared with three in the previous quarter.

Said Knight Frank’s director of research and consultancy Nicholas Mak: ‘This is another indication that the boom in the high-end segment has subsided.’

Mid-tier projects saw the most sales last month, with Hong Fok’s 360-unit Concourse Skyline in Beach Road the top seller. Out of the 100 launched units, 68 were sold at prices ranging from $1,272 psf to $1,871 psf.

MCL Land’s The Peak @ Balmeg in Balmeg Hill and Soon Lian Realty’s Tresalveo in Marymount Terrace did relatively well. Buyers picked up 47 out of 90 launched units at the 180-unit The Peak @ Balmeg, paying between $854 psf to $1,147 psf for the project.

At Tresalveo, buyers bought 41 out of 60 launched units of the 176-unit development near Jalan Pemimpin for between $902 psf and $1,045 psf.

Other new releases include Far East’s 99-year leasehold condo in Marine Parade called Silversea, where 11 units were sold at a median price of $1,400 psf.

Consultants expect sales to remain at last month’s levels as developers hold out for market confidence to rebound.

‘Support from HDB upgraders will still be evident since the HDB resale market is going strong,’ said CBRE’s Mr Li. ‘But other potential buyers would prefer to wait…for a more sustainable solution for the global financial turmoil.’

While prices of mass-market homes should remain stable for the next quarter, the impact of recessionary pressures remains imminent and may pose downside risk to this market over the next six months, said Dr Chua Yang Liang, head of research for South-east Asia at Jones Lang LaSalle.

Source : Straits Times - 16 Oct 2008

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Banks sound, system working well: Tharman

Banks sound, system working well: Tharman

Minister says MAS response has been measured but effective

By Fiona Chan

FINANCE Minister Tharman Shanmugaratnam said yesterday that the Government has been ‘alert and vigilant’, since the financial crisis started, in making sure that Singapore’s financial system continues to work well.
As long as it continues to function in an orderly manner, he added, the economy as a whole can go through the crisis ‘without too much damage’.

To this end, the response of the Monetary Authority of Singapore (MAS) has been measured but effective so far, he told reporters at the unveiling of the Lee Kong Chian statue at Hwa Chong Institution yesterday afternoon.

As the global crisis gathered steam in recent weeks, the MAS has injected funds into the tight money markets, offered more liquidity to banks here and eased its exchange rate policy to encourage economic growth by shifting to a zero-appreciation stance on the Singapore dollar.

But the Government has not had to take ‘major actions’ domestically because the banking system is not in trouble and Singapore’s banks are sound, said Mr Tharman.

While Singapore cannot avoid economic weakness, the problems are coming from abroad rather than within Singapore and there is still plenty of confidence in the system, said Mr Tharman.

Banks here are sound because they have not faced the two big problems hitting others worldwide: a lack of capital and a lack of liquidity stemming from frozen wholesale funding markets, said Mr Tharman.

‘Our banks have enough capital and they’re not dependent on the wholesale funding market, unlike banks in some other countries,’ he said.

Banks in Singapore tend to lend money from the deposits they collect instead of relying on borrowings from other institutions, or wholesale funds, which could dry up and leave the banks in a liquidity crisis.

This confidence means that guaranteeing bank deposits - a move that Hong Kong took on Monday - may not be required in Singapore.

‘That is something which we are studying very carefully and I’m not making a statement on that at this point,’ he said.

‘But from the point of our system, it is not necessary because there is no lack of confidence in our systems and that is something which the market acknowledges.’

Still, Singapore will have to study the implications of Hong Kong and a few other economies having guaranteed bank deposits, Mr Tharman added.

Experts have said that one concern is that money from wealthy investors could flow out of Singapore and into banks based in countries where deposits are government-guaranteed.

Turning to the economy, Mr Tharman said Singapore will have to expect a weakening of its economy along with the rest of the world.

‘But I think we have the great advantage of a financial system in which the confidence is still high and the problems we are facing are external and not domestic,’ he added.

Slumping export demand has already sent Singapore into a technical recession. It also resulted in the Trade and Industry Ministry lowering its full-year growth forecast last week to ‘around 3 per cent’, from 4 to 5 per cent previously.

Mr Tharman said the latest growth prediction ‘is a fair position for now’.

‘To be absolutely frank, forecasting is more inexact than it has ever been because the situation is changing by the week, indeed by the day in the United States and elsewhere,’ he said.

‘What is less important is the exact number you are putting out as much as the direction that is being conveyed. We do expect a weakening of the economy and we’re preparing everyone for that.’

Asked about investors who had bought products linked to the now-bankrupt Lehman Brothers investment bank, Mr Tharman said the MAS has set out its approach clearly to provide avenues for recourse.

‘Each of the banks has set up a panel headed by an independent person, respected individuals, so as to make sure this is a fair and serious process,’ he said. ‘This is not white-washing, it is a serious process of mediation.’

Source : Straits Times - 16 Oct 2008

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$100,000 life savings gone

$100,000 life savings gone
Husband and wife run provision shop all their lives
They put life savings in Lehman Minibonds in July
Two months later, they get a call from the bank: ‘Your money is all gone.’
Retirees recount their big losses

By Francis Chan

ONE fateful decision was all it took to turn what should have been a comfortable retirement for Mr Ling Jun Zhi and his wife into a nightmare that threatens to destroy their golden years.
That decision was to trust a financial adviser and put their $100,000 of life savings into a structured product called Lehman Minibonds that was exposed to the now bankrupt Lehman Brothers bank.

A large part of their nest egg could now be gone, wiped out after a frenzy of incomprehensible financial market convulsions in New York somehow landed on the doorstep of the retired Bukit Timah shopkeeper.

It is no consolation but Mr Ling and his wife of 50 years are not alone. Thousands of retirees - people whose productive lives are behind them - bought the products in expectation that they had a safe haven for their hard-earned cash.

The Monetary Authority of Singapore (MAS) said there are approximately 10,000 retail investors who invested over $500 million into structured products linked to Lehman, such as Lehman Minibonds and DBS High Notes 5.

That $500 million represents the life savings of many people who have no chance to get back on their feet, although DBS has said that 80 per cent of its High Notes 5 customers are aged below 62.

The victims are angry, believing that retirees were seen as cashed-up soft touches by relationship managers selling the products.

Some, like Mr Ling, attended a rally at the Speakers’ Corner in Hong Lim Park last Saturday to protest against what they claim were misleading sales pitches for the products.

Yesterday, he went again to a planned meeting of DBS High Notes 5 investors outside DBS Building on Shenton Way. He did not invest in High Notes, but was desperate for any kind of information he could get about his Lehman-linked investment.

Many retiree investors that The Straits Times spoke to were Chinese-speaking, middle-aged and elderly people who had invested their life savings.

They were angry and distressed at having been persuaded by bank relationship managers into buying Minibonds and High Notes 5 without being fully informed of the risks involved.

Investors have been receiving regular interest payouts on their investments, some every quarter. But now, they have been told to brace themselves for the loss of most of their principal investments.

DBS has confirmed its relationship managers were never instructed to specifically target retirees for High Notes 5.

But two relationship managers from other banks told The Straits Times that retirees have always been seen as prime customers.

‘Of course the bank will not tell us to target retirees officially,’ said a senior relationship manager from a foreign bank, who did not want to be named.

‘But you don’t have to be a genius to know that retirees are usually heavy with cash,’ she said.

And a former relationship manager added: ‘We have sales quotas for different products depending on sales targets from each month.

‘And I have been coached, albeit informally, to seek out retirees when it comes to products that have a higher entry amount in the retail space.’

Investors have told The Straits Times similar stories of how they were convinced to invest.

‘The relationship manager at DBS told me that my investment in High Notes 5 was guaranteed 100 per cent for five years,’ said Mr Ang, a 68-year-old retiree.

‘And from my understanding, that meant that if I remained invested for the entire five years, my principal would still exist.’

Mr Ang explained in Mandarin that he had invested $600,000 of his life savings in High Notes 5. He said he had thought the product was similar to a fixed deposit account.

All he had wanted to do was renew his fixed deposit at DBS, he said. Now, Mr Ang said, he faces the grim possibility of possibly losing the majority of his retirement funds.

Another couple in their 50s, who spoke on condition of anonymity, said that while they do not feel like they were cheated by DBS, they felt somewhat misled and let down.

‘DBS is like our national bank,’ said the husband, who invested $100,000. ‘How could they not tell us that we can lose all our investment just like that? I feel really disappointed but what can I do? My wife signed the papers.’

Or take retiree Mr Tan, who invested $50,000 in High Notes 5.

He told The Straits Times that he has still not received or even seen the High Notes 5 prospectus from his DBS relationship manager.

‘I never saw it, I just signed it based on my trust in DBS Bank as Singapore’s bank,’ said Mr Tan, who is in his 50s.

Part of the problem with the products as investment was their sheer complexity.

Mrs Amy Loh invested $25,000 in High Notes 5, funds she had earmarked while between jobs. She told The Straits Times: ‘What the relationship manager said was, ‘Don’t worry, this is very safe, even if one entity (out of a basket of eight reference entities) fails, you still have seven.”

She was referring to the fact that High Notes 5 included a basket of seven other stocks - called reference entities - apart from Lehman.

But many investors did not understand that High Notes 5 had a ‘first-to-default’ clause. If one of the reference entities defaulted or went bankrupt - as in the case of Lehman - the entire structure unwinds, triggering a credit event.

When investors were asked by The Straits Times if they knew what terms like ‘first to default’, ‘reference entities’ or ‘credit event’ meant, very few knew.

‘These are financial jargon; tell me how many of us regular folk or even the older retirees can understand them?’ said Mrs Olivia Sun, 40.

‘But my relationship manager was already tripping up just trying to explain ‘credit derivative’.’

Industry experts told The Straits Times that the sales process and competency of relationship managers have been questionable, especially if they had targetted retirees.

Mr Leong Sze Hian, president of the Society of Financial Service Professionals, said: ‘It’s not fair to get people who are old and elderly to put their life savings into just one product. The key issue here is diversification.

‘Most of the representatives selling these products were probably not even aware of the risks themselves…This is an issue that has to be addressed.’

Mr Paul Chan, an ex-president of the Insurance and Financial Practitioners Association of Singapore, agreed: ‘Is it really fair to say caveat emptor (buyer beware)? I don’t think so…I saw some of the retirees at the Speakers’ Corner over the weekend, and they don’t understand English.

‘They showed me the documents that were in Mandarin, and they don’t even understand it…These people deserve to have some recourse.’

There is a ray of hope. On Monday, Mr Rajan Raju, DBS’s head of consumer banking, assured investors that the bank ‘will not hesitate to take responsibility’ if evidence of mis-selling is established.

A spokesman for Hong Leong Finance, which also sold the products, said yesterday: ‘We are focusing resources to address as quickly as possible all the issues brought up by our customers.’

Just how much assurance that will bring Mr Ling and his wife is debatable, but they do not have much else to cling to.

They had spent decades running a provision shop in Bukit Timah, saving up for the time when they could finally call it quits.

It came around July and Mr Ling, 78, went to Hong Leong Finance’s main branch at Raffles Quay to get his finances settled.

‘I went to start a fixed-deposit account,’ said Mr Ling in a mix of Mandarin and Teochew.

‘But the staff told me to try this special account which would give me more interest - 5 per cent guaranteed, he said, so I agreed.’

Then it all turned sour with a single phone call that would chill anyone’s blood.

‘In September, a man from the bank called and told me that all my money was gone and he didn’t, or maybe couldn’t, even explain to me why it was gone,’ said Mr Ling.

‘All he said was that because I had invested in something called ‘Mini Bong’, my $100,000 was all gone.’

Investors in structured products linked to bankrupt US investment bank Lehman Brothers speak up, most saying they never intended to sign up for these risky products such as Minibonds, Pinnacle Note 7 and High Notes 5

I THOUGHT MY PRINCIPAL WOULD BE PROTECTED

‘The relationship manager told me that my investment in High Notes 5 was guaranteed 100 per cent for five years. And from my understanding, that meant that if I remained invested for the entire five years, my principal would still exist.’

A 68-year-old retiree who wanted to be known only as Mr Ang. He invested $600,000 of his life savings into High Notes 5 which he thought was similar to a conventional fixed deposit account.

WE’LL WAIT BUT KEEP US UPDATED

‘What the relationship manager said was: ‘Don’t worry, this is very safe, even if one entity (out of a basket of eight reference entities) fails, you still have seven.’

‘I don’t think we are unreasonable. We will give them time to conduct the valuation. But (DBS) also has to be reasonable with us and be more proactive in keeping us updated. Perhaps organising a conference to give investors more information on what they are going to do about it, if they actually value us as customers.’

Mrs Amy Loh, in her 40s, who was approached by a DBS relationship manager at a branch when all she wanted was to start a fixed deposit account. She invested $25,000.

SHOCKED BY DROP IN VALUE TO JUST 10%

‘I invested several hundred thousand dollars in Pinnacle Note 7 slightly more than a year ago, via UOB Bank, and was shocked to be informed by my relationship manager one late afternoon…that this structured product was badly affected and currently valued at less than 10 per cent. He could not give me more details, not even the causes for the collapse.’

Mr Steven Ho, 63, a retiree, via e-mail to The Straits Times.

Source : Straits Times - 16 Oct 2008

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Singapore Parkway Centre for sale for about $1,000 psf ppr

Singapore Parkway Centre for sale for about $1,000 psf ppr

Price is 15% higher than Katong Mall, which was sold in July

By ARTHUR SIM

PARKWAY Centre, which is controlled by Hong Kong-listed Far East Holdings International, has been put up for sale with an indicative price of about $160 million. This works out to about $1,000 per square foot per plot ratio, around 15 per cent higher than the $865 psf ppr for Katong Mall, which was sold in July.

Jones Lang LaSalle is marketing the site and its associate director (investments), David Batchelor, said that while the market is slowing down, he does expect a deal because Parkway Centre is one of only two private commercial developments available in Marine Parade Central for investors to consider. The other is Parkway Parade. Mr Batchelor added that local and foreign investors and private equity funds have already shown interest.

The 99-year leasehold Parkway Centre has three retail shop units and 107 office units. Mr Batchelor said that the retail rental is $25-30 psf per month and the office rental, $4-5 psf per month. Far East Holdings International (which is not related to Far East Organization here) owns 40 per cent of Parkway Centre. Mr Batchelor said that approval from 80 per cent of the stakeholders in Parkway Centre has been received.

Under the Master Plan, the 18,665 sq ft site is zoned for commercial use and has a gross plot ratio of up to 3.2. Based on the Written Permission dated Nov 21, 1985, it also has the potential to be redeveloped into an office-cum-retail development with a gross floor area (GFA) of up to 157,625 sq ft, subject to relevant authorities’ approval and payment of differential premium for the top-up of lease if applicable. The differential premium is estimated to be about $16.6 million.

Source : Business Times - 16 Oct 2008

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Mindy Yong

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NHB seeks proposals for running of private museums

NHB seeks proposals for running of private museums

Heritage board will make 3 state properties in prime locations available

By ARTHUR SIM

THE National Heritage Board (NHB) and Singapore Land Authority are seeking proposals from the public to develop, operate and manage Integrated Museum and Art Facilities.

Dr Wu: Says more incentives are needed to draw private collectors to set up museums
Three state properties in prime locations will be made available through a request-for-interest exercise.

But potential ’boutique museum’ owner Woffles Wu says the lower rents set for these buildings are not attractive enough to encourage people like him to set up museums there.

The three properties are the former Catholic High Secondary School in Queen Street, 27A/30B/30C Loewen Road and 27B Loewen Cluster at Tanglin Village. The proposed rents are $42,516 a month (75 cents psf per month), $12,337 a month ($1.10 psf per month) and $5,159 a month ($1.18 psf per month) respectively.

Dr Wu, a well-known plastic surgeon, reckons these rents are only 20-30 per cent lower than market rates. ‘If NHB really wants people to set up these museums, they will need to give a lot more incentives,’ he added.

In January, it was reported that Dr Wu and prominent businessman Oei Hong Leong were in talks with NHB to set up private museums.

Dr Wu says funding or subsidies should be closer or equal to those for state-run museums. ‘They are, after all, asking people to display their private collections to the public, and this runs high risks,’ he said.

Revenue for these museums will come mainly from ticket sales, he noted. ‘At between $5 and $10, how many tickets will I have to sell to cover my costs?’

Dr Wu’s art collection is now housed in a warehouse at Ubi.

In response, an NHB spokesman said the scheme offers space at a fixed rent pegged to Civic and Community Institution rate.

‘The idea behind this is to evaluate proposals based on their concept, business model, programming and other strategies as opposed to price alone,’ he said. ‘This makes it more accessible to private collectors keen to start their own museums or Integrated Museum and Art Facilities.’

Separately, NHB has another scheme that supports up to 50 per cent or $100,000 of development costs for private heritage and museum projects.

Piloted in April 2007 with a seed fund of $500,000, the scheme has approved 14 heritage projects so far.

Source : Business Times - 16 Oct 2008

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YTL launches Sandy Island villas on Singapore Sentosa Cove

YTL launches Sandy Island villas on Singapore Sentosa Cove

It also sells 3 villas, and the highest price registered so far is $2,100 psf

By EMILYN YAP

ULTRA-high net worth individuals with at least $13.9 million to spare will now have a new piece of luxury to own - a Sandy Island villa on Sentosa Cove - after Malaysia’s YTL Group launched its collection of 18 waterfront villas here yesterday.

Waterfront luxury: The Sandy Island villas have been designed by Italian architect Claudio Silvestrin, while gardens for the villas and the island’s lush setting are the works of Australian landscape designer Jamie Durie
Nestled within a tropical rainforest setting, the villas have generated strong local and global interest, said YTL Group. Three villas have been sold, and the highest price registered so far stands at $2,100 per square foot (psf).

The 99-year leasehold properties have built-up areas ranging from 7,500 to 9,200 sq ft. Designed by Italian architect Claudio Silvestrin, whose work includes the Giorgio Armani flagship stores, each villa is unique in layout and furnishings.

Gardens for the villas as well as the island’s lush setting are the works of Jamie Durie, one of Australia’s best landscape designers.

‘Singapore is an increasingly sophisticated country attracting the global affluent who want to buy luxury landed property, which is permitted only in Sentosa Cove. These wealthy individuals expect the best,’ said Francis Yeoh, chairman of YTL Corporation, parent of the YTL Group.

In fact, the desire to create ‘the best’ for potential clients contributed to a delay in Sandy Island’s launch. Nonetheless, this was none too worrying for Dr Yeoh, whose overriding concern was to assemble a strong team of designers to create properties which can withstand the test of time. ‘You can’t hurry a good thing,’ he said in an interview with BT.

Neither is Dr Yeoh overly worried about launching the villas amid today’s global financial fallout. ‘For me, (timing) is not important, just because there is an economic cycle that is not the most pleasant to launch this product,’ he said. ‘You need not suffer the cycles if you truly have the quality.’

Savills Singapore is the marketing agent for the Sandy Island collection. According to its marketing and business development director Ku Swee Yong, there remain cash-rich individuals who have not been significantly affected by the financial turmoil.

Apart from locals, individuals from regions such as Hong Kong, Japan, Europe and the Middle East have also shown interest in the villas, he said. In today’s climate, ‘the urgency to commit (to a purchase) is a bit less’, Mr Ku remarked. But he added that the financial turmoil has also caused some investors to feel more secure parking their wealth in properties instead of banks.

For YTL, Sandy Island is among several other projects it has for the Singapore market. Should the right prime address come along, the group will develop a new luxury mall - Starhill Gallery - here. The company is also working on a new development at the Westwood Apartments site in Orchard. ‘Singapore is an address which I believe cannot be ignored,’ said Dr Yeoh. ‘I would say that the Chinese, Indians and Southeast Asians, the future’s very rich would love to invest in a place like Singapore.’

And beyond Singapore, weaker global markets could present more investment opportunities for YTL globally. ‘I hope this is my opportunity to pick up a few prime properties around the world. . . I’m looking forward to doing a few deals this calendar year.’

Source : Business Times - 16 Oct 2008

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Employers reducing hiring in Q4; but few retrenching: survey

Employers reducing hiring in Q4; but few retrenching: survey

Hudson notes that latest global financial events may affect poll results

By LEE U-WEN

THE financial crisis may be forcing many employers to scale back on recruitment plans, but encouragingly, only a handful of them plan to lay off staff in the October-December quarter.

Among 800 top employment decision makers polled here by leading executive recruitment firm Hudson, 37 per cent in key business sectors forecast increased hiring in Q4 2008, down from 43 per cent in Q3 and 57 per cent year-on-year. The majority - 59 per cent - said that hiring will remain steady, while just 4 per cent expect headcount to be cut.

‘New hiring expectations continue to fall in response to the global economic slowdown, but a reduction in headcount does not seem to be widely anticipated by employers,’ said Hudson’s country manager for Singapore Gina McLellan.

The company noted, however, that the survey was conducted before the latest events in global financial markets, which may have affected the results, especially for the banking and financial services sector.

Manufacturing was the only sector to record a rise in hiring expectations overall, with 46 per cent of respondents expecting the number of staff to grow this quarter, up slightly from 44 per cent in Q3.

Among media, PR and advertising firms, hiring expectations fell sharply, with 41 per cent forecasting increased headcount, down from 51 per cent in Q3.

In the banking and financial services sector, 34 per cent of respondents plan to increase hiring, down from 43 per cent in Q3. ‘Q4 is traditionally a slow hiring period, as budgets are being finalised and most people do not change jobs until bonuses have been paid in Q1,’ said Hudson.

Despite the bleaker outlook, a heartening 64 per cent of respondents expect their company’s performance to be ‘good’ next year. The healthcare sector led the way on optimism, followed by the media, PR and advertising industry.

When it comes to stress, 48 per cent of executives in Singapore said that it is higher now than a year ago. The last time the question was asked in Q2 last year, 52 per cent felt that way.

Singapore has the second-highest proportion of respondents reporting higher stress levels - after China. Just 6 per cent of those in Singapore said that their stress levels are falling - the lowest proportion among four markets polled, the other two being Hong Kong and Japan.

‘An increase in the volume of work is seen as the main cause of work-related stress by a substantial margin,’ Hudson noted. Across all sectors, 42 per cent said that this is the chief cause of stress, more than three times as for any other reason.

Source : Business Times - 16 Oct 2008

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Wheelock stake in SC Global rises to 15%

Wheelock stake in SC Global rises to 15%

By UMA SHANKARI

WHEELOCK Properties has lifted its stake in SC Global Developments to 15 per cent from 13.09 per cent, SC Global said yesterday.

Wheelock increased its stake in the open market between Feb 4 and Oct 15 this year. The increase was also due to a reduction in SC Global shares on issue after a recent buy-back exercise. Wheelock made its purchases through wholly owned subsidiary Ardesia Developments.

SC Global chief Simon Cheong is the company’s largest shareholder. On Oct 8, he had a deemed stake of 53.513 per cent and a direct stake of 0.155 per cent, according to a filing by SC Global with the Singapore Exchange that day.

In September, he upped his stake in the company, buying 7.79 million shares at 75 cents each in a married deal, which worked out to an investment of $5.8 million in all. David Tsang, SC Global’s executive director and director of corporate finance, also bought 500,000 shares at 75 cents apiece.

The two directors bought the shares in their individual capacity. Mr Cheong said then that he and Mr Tsang had bought into the company because they saw value in it.

SC Global shares lost one cent to close at 48.5 cents yesterday, while Wheelock shares shed 3.5 cents to end at 83 cents.

Source : Business Times - 16 Oct 2008

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Mindy Yong

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