Young PAP has new chief

Young PAP has new chief

Teo Ser Luck takes over from Vivian Balakrishnan, who delivers rousing challenge

By Zakir Hussain

SENIOR Parliamentary Secretary Teo Ser Luck is the new chairman of the People’s Action Party’s youth wing.
Mr Teo, 40, takes over from Dr Vivian Balakrishnan, 47, Minister of Community Development, Youth and Sports.

The new appointment, made at the Young PAP (YP) convention yesterday, marks the first time the entire 31-member leadership of YP has been drawn from the post-independence generation.

Assisting Mr Teo, who is with the Ministry of Community Development, Youth and Sports (MCYS) and the Ministry of Transport, are two vice-chairmen: MPs Zaqy Mohamad, 34, and Christopher de Souza, 32.

Mr Teo was previously YP’s vice-chairman, alongside MP Josephine Teo, 40, who is stepping down to make way for the younger generation.

Yesterday, he outlined three key objectives for the 22-year-old YP he leads.

They are: Continue to recruit and retain members; develop a strategy to engage youth through new media; and have members be aware of current issues so they can explain policies to their peers.

Mr Teo also paid tribute to Dr Balakrishnan for giving younger members opportunities to prove themselves, and for introducing elections for several posts in the YP leadership in 2004.

‘He established YP’s position in the party and public as well,’ he said.

‘I have a very big pair of shoes to fill, and I cannot do it alone,’ he told 300 YP members at the NTUC Centre.

‘I have to do it with everyone at branch level, at the exco.’

The new 31-member exco appointed yesterday includes 15 new faces.

It also includes two Young NTUC leaders, as a sign of the symbiotic relationship between the PAP and the labour movement.

A new post of YP organising secretary was created to give non-MPs more leadership opportunities.

Medical officer Tan Wu Meng, 33, was elected as the first organising secretary.

In an off-the-cuff 30-minute speech to members, Dr Balakrishnan dwelt at length on the five key values the PAP stood for: multiracialism, meritocracy, honest government, a self-reliant people and a fair and just society.

He reminded them that the PAP first entered Parliament as an opposition party 54 years ago, before taking over in 1959.

‘By next year, we would have been in power for 50 years. Fifty years from now, will we still be in power? Will we continue to grow this place…or will we become tired, incompetent, corrupt and soft?’

He added: ‘Can the PAP continue to win elections for the next 50 years? If we do, that will be a political feat that has never been achieved anywhere in this world.’

He noted that there were three ways elections could be won: have an auction and promise handouts that might not be able to stretch over 50 years; offer change and enthuse people about something that will not last long; and the PAP way.

‘We are trying to build…a fair and just society, for the long term,’ he said.

Dr Balakrishnan also identified four things the PAP must deliver to win over the people: opportunities to succeed in life; fairness; security of the country; and freedom to act within limits.

‘Ask yourself, and we should ask others this when we are campaigning: Who is going to look after your long-term interests, your assets, your hopes, your dreams?’ he said.

Source : Straits Times - 03 Nov 2008

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Days of sky-high Singapore HDB rents numbered: Analysts

Days of sky-high Singapore HDB rents numbered: Analysts

Falling private home rents seen as a major cause

By Joyce Teo, Property Correspondent

Unit size and location play a big part in determining HDB rents. — ST FILE PICTURE

THEY are the next segment of the local property market to be hit by the global financial crisis.
Rents of Housing Board flats, which have been climbing steadily, largely on demand from foreigners squeezed out of the private homes market, are up only slightly in the third quarter even as rents of private homes fell.

But property experts say HDB rents have likely peaked. They will hold steady for the next several months before they begin to crack from the pressure of falling rents in the private homes market.

‘Any decline in private rents is going to contribute to the downward slide in HDB rents, but it may take a few months for the impact to filter down,’ said Knight Frank’s director of research and consultancy Nicholas Mak.

The pressure is already starting to show: Rents for HDB flats have shown smaller increases in the third quarter.

Median rents for five-room flats have risen by $100 every quarter this year to $2,000 in the third. But median rents for three-room flats remained unchanged at $1,500 in the three-month period to Sept 30 while median rents for four-room flats showed a smaller $50 rise to $1,800, from $1,750 in the second quarter and $1,600 in the first.

Private home rents are expected to continue dropping given the weaker economic outlook, particularly as supply is expected to rise next year when more developments are completed, experts say.

HSR Property Group executive director Eric Cheng says HDB rents are likely to stay stable for the next few months until the gap between private home rents and HDB rents starts to narrow.

There are now 21,400 HDB flats approved for subletting, up from 20,200 in the second quarter. But HDB subletting deals fell 4 per cent to 3,960 cases in the third quarter.

ERA Asia-Pacific’s assistant vice-president Eugene Lim said: ‘Next year, when tenancies are up for renewal, you will see rentals coming down.’

If landlords do not lower rents, their tenants may switch over to private apartments as the price differential between the two types of property narrows.

‘It’s the push-down effect as those pushed out of the private market go to the HDB market,’ said ERA’s Mr Lim.

Government data shows private home rents surged dramatically by 41.2 per cent last year, with rents for non-landed homes in suburban areas up 41.9 per cent.

An HDB property agent, who wanted to be known only as Chui, said sentiment in the HDB market has been slightly hit by the gloomy economic outlook and there is more ‘tenant resistance’.

‘HDB rents have come down a bit. For three-room flats, it is still not a problem getting tenants to pay $1,400 to $1,600 a month, but maybe not above that.’

Unit size and location play a big part in determining HDB rents, given that there is a renters’ threshold, said PropNex chief executive Mohamed Ismail.

‘A small three-room flat in a good location can get more than $2,000 but an executive flat in the same location may not command even $3,000,’ he said.

‘The threshold for HDB flats is around $2,500. Beyond that, people will go for condos with facilities.’

HDB flat owners can rent out their entire unit after occupying it for three years. This minimum occupation period rises to five years if they have a subsidy or housing grant.

Mr Alan Wong rented out his 67 sq-m three-room HDB flat in Kallang last month for a whopping $2,100 a month.

‘It’s a family from China. They are permanent residents, professionals, and have a daughter studying in a school nearby,’ he said.

But he is one of the lucky few. HDB data shows median rents for three-room flats in the Kallang/Whampoa area at $1,500.

Currently, three-room flats in the central area, Bukit Merah and Marine Parade command the highest rents among HDB towns.

Still, rents of Marine Parade three-roomers have fallen from $1,750 in the second quarter to $1,700 in the third.

Source : Straits Times - 03 Nov 2008

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But is it socialist enough?

But is it socialist enough?

THE image of the People’s Action Party (PAP) came under scrutiny yesterday when some members of its youth wing wondered if it has strayed from its roots.
The discussion at the Young PAP convention (YP) was sparked by a graduate student pointing out that some people view the opposition Workers’ Party as more socialist.

Mr Chiam Sher Yi said: ‘This will be a major point of battle at the next general election.’

The 34-year-old pointed out that by always insisting that people rely on themselves, ‘it is sometimes hard to win people’s hearts and minds’.

Medical officer Tan Wu Meng, 33, disagreed, saying the issue is complex. He argued that giving subsidies to everyone is ‘regressive’ because it means the wealthy are also being subsidised.

Later, wrapping up the lively debate, outgoing YP chairman Vivian Balakrishnan said: ‘We are still socialist. If you go anywhere in the world and you pick the poorest 10 per cent and you compare their homes, their schools, their hospitals and their jobs, we have done better than all Communist countries and all capitalist countries. Don’t ever let the opposition paint us as people who do not care about those who are less well-off.’

Noting that 92 per cent of Singaporeans own their homes, and 86 per cent get housing subsidies through the HDB, he added: ‘We remain socialist but not just socialist, because with globalisation, we also have to make sure we attract companies, entrepreneurs and wealth. That’s why we have low taxes, good banks, financial systems that work, and people think this is a capitalist paradise. But we run a fair system, so whether you are poor or middle class or wealthy, this is one of the best places in the world to live in.’

For almost three hours, some 300 YP members discussed the challenges facing Singapore and how new media can affect what they see as the longstanding trust between the PAP and the people.

One key challenge is the rising expectations people have of the Government and the PAP, said business and management consultant Tin Pei Ling, 25.

‘They want to voice their views and expect the Government to accede unconditionally.’

And at a time when pro-PAP voices are outnumbered on the Internet, lawyer Nicholas Lazarus, 36, feels many YP members are still reluctant to engage ‘the other side’ online.

‘They are unwilling to take on the challenge of propagating our message on the Internet, which is dominated by opposition sympathisers. We need to build up our confidence level,’ he said.

Zakir Hussain

Source : Straits Times - 03 Nov 2008

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Debt agents calling on more credit card users

Debt agents calling on more credit card users

It indicates more people are unable to meet payments as crisis worsens

By Gabriel Chen

Credit cards are a way of paying easily for purchases, not a credit facility. Before making a big purchase, experts advise that consumers ensure they have the funds to make the payment in full or via instalments. — PHOTO: BLOOMBERG

DEBT collectors in Singapore are seeing more consumer debt submitted to them for collection - and they foresee more consumers being unable to pay up if the global financial crisis deepens.
It is the first sign that the crisis has hit home with credit-card users in Singapore, financial experts say.

Ms Chen Yew Nah, managing director of DP Information Group, which has a debt collection arm, said its consumer debt cases more than doubled from March to last month, while the total sum collected was up 20 per cent over the same period.

‘We have already detected a downturn in consumer repayment behaviour as a result of the credit crisis,’ she said.

‘We foresee a greater and more visible impact on defaults and rollover amounts in the coming months. This would be due to greater job losses and general negative consumer sentiment.’

Debt collectors visit the homes and offices of credit-card users to try and personally recover debts overdue.

Banks and other financial institutions that provide credit call on collectors as a last resort, especially when phone and e-mail reminders to pay up are ignored.

An increase in debt collection cases therefore signals that more customers are unable to meet their credit card payments.

Ms Chen identified three main groups of affected consumers: those who lose their jobs suddenly, those who are stricken with ill health leading to an immediate drain on their finances, and those weighed down by excessive debt.

During the Asian financial crisis a decade ago, it was the first group, those who lost jobs, who felt the heat on credit-card debt, she said.

‘When you see unemployment going up, it’s more worrying. It’s this next stage we’re looking at, and I suspect there’ll be more to come in terms of percentage of non-payments.’

Financial advisers added that, anecdotally, they are seeing more cases of financial stress among cash-strapped individuals.

‘A year ago, about 30 per cent of cardholders were rolling over their balances, but now about 40 per cent of cardholders are rolling over every month,’ said Mr Leong Sze Hian, president of the Society of Financial Service Professionals.

He said that while some people choose to roll over balances to ‘finance their lifestyles’, others are unaware of the consequences that can leave a hole in their pockets.

Credit-card issuers here typically charge an interest rate of 24 per cent a year when full payment is not made by the due date and on cash advances.

The good news is that official delinquency and default figures are not yet rising significantly, a check with Credit Bureau Singapore showed.

Default accounts are those closed with outstanding balances or written off as bad debt, while delinquent accounts are those that are 30 or more days past due.

Still, the fact that there has been no noticeable rise in defaults or delinquency does not mean things will not get worse in future, said the bureau’s executive director, Mr William Lim.

‘If employment numbers change, that will likely have an impact on delinquency. The situation will be exacerbated with low growth and if inflation figures are not contained. However, the impact will not be immediate and will likely take place only next year,’ he said.

The credit crunch is being felt in countries like the United States, where the national passion for shopping with plastic is taking a hit as card issuers cut back on card offers, tighten standards for applicants, and curtail sky-high credit lines they had splashed out for years.

The New York Times reported recently that some lenders are even pulling credit lines after monitoring cardholders who shop at the same stores as other risky borrowers, or who have mortgages from certain companies.

In Singapore, banks contacted said they are not doing anything of that sort yet. They added that they use a ‘robust system’ of credit processes and policies in assessing all credit-card applications.

Citibank Singapore’s head of portfolio management and sales, Ms Jacquelyn Tan, said the bank has always adopted a prudent approach towards lending.

‘Any application for credit undergoes a rigorous credit review process that assesses a potential borrower’s ability to repay,’ she said.

Mr Dennis Khoo, Standard Chartered Bank’s general manager of lending, said the bank would work with customers who have difficulties in meeting repayments on a case-by-case basis.

Deep in debt? These tips might help
HERE are some tips on managing credit card debt from the Credit Counselling Singapore (CCS), a non-profit group that advises debtors.

How should consumers manage such debt?

Consumers should view their credit cards as a means of payment and not as a credit facility. They should pay in full and on time to avoid heavy interest charges.

Should consumers use their credit cards to pay for big-ticket items?
If they have the funds to pay for the item, they should by all means use the credit card as often as possible to get a discount or points, or even an interest-free repayment plan over 12 or 24 months.

The caveat is that the consumer must have the ready funds available to make payment in full or to meet the repayment instalments, said CCS president Kuo How Nam.

What are the options if a consumer has already chalked up a substantial amount of credit card debt and he loses his job?

Some banks do have debt relief plans for distressed debtors but this will still require that the debtor has some income and debt repayment capability.

If he still has some savings, it is possible to offer them as a partial payment and close the matter. This option may be feasible with one bank but not if he has debts with more than one institution.

If the debtor has no job, income or savings, there may be no other choice but to wait for the creditors to take legal action, which may include bankruptcy.

If the consumer is deep in credit card debt and has difficulty meeting the minimum sum required but still holds a job, what should he do?

As long as he holds a job and has some income, it is possible to suggest a repayment proposal to his creditors. Assuming he has credit card debts with more than one bank, from our experience, it is very difficult for an individual to handle these negotiations in a multi-creditor situation. This is where CCS comes in.

CCS has a debt management programme with the banks. If a customer is suitable for a debt management programme, we will write to all his unsecured creditors to explain the individual’s financial situation and make a proposal to all his unsecured creditors for repayment of all his unsecured debts over a number of years.

CCS acts as a facilitator and negotiator for the debtor. This is a win-win situation as the debtor gets some breathing space and time to pay off his debts in a sustainable manner and the creditors will eventually get back their money.

LORNA TAN

Source : Straits Times - 03 Nov 2008

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A long-term financing model for scientific research

A long-term financing model for scientific research

Oxford professor relates his experiences at A*Star seminar

By CHEN HUIFEN

SCIENTISTS who find their projects hindered by a lack of funds may want to take a leaf from Oxford University chemistry professor Stephen Davies. The serial entrepreneur has not only created seven growing businesses but also helped his department plug in long-term financing for research.

‘You have many more things going on here … You have a more flexible attitude. You can change the size of the company more easily.’

- Prof Stephen Davies on why his financing model may also work in Singapore

‘I was spending almost all of my time writing grant proposals to raise the money to do science,’ said the head of Oxford’s chemistry department.

‘I thought this was crazy. The science we were producing obviously had some value. So I thought, ‘why don’t I see if I could set up a business?’ That business would then make some money and I could use the money to fund my research group in the future.’

In Singapore recently for the Distinguished Technopreneur Speaker seminar organised by A*Star’s Exploit Technologies, Prof Davies spoke about how he started his first company, Oxford Asymmetry (now Evotec OAI).

The company started out to provide chemical synthesis services for the pharmaceutical industry, with the aim of helping customers cut down the medicinal dosage required.

Prof Davies decided he would channel a percentage of the company’s proceeds into a fund to support his research.

From a £100,000 (S$239,682) start-up in 1992, Oxford Asymmetry grew into a £360 million company in 2000, the year it was sold. Today, that fund is still financing his group’s projects.

‘We’ve had such a success with Oxford Asymmetry and other companies that we could persuade (bank) Beeson Gregory (now IP Group) to give £20 million to the chemistry department,’ said Prof Davies. ‘What they get back in return was 50 per cent of the university’s equity in any spin-out deal and 50 per cent of any licensing deal for 15 years.’

To date, the partnership is near its halfway point. Eleven companies have been created. Of these, two are listed on London’s Alternative Investment Market with a combined market capitalisation of over £100 million.

Apart from the cash injection, the university also gained from the bank’s expertise in management and financial advisory when spin-offs are created and when the companies go public.

Prof Davies thinks such a financing model, which eliminates middlemen such as venture capitalists, may also work in Singapore because ‘you have many more things going on here’.

He says: ‘You have a more flexible attitude. You can change the size of the company more easily… All the big companies like Glaxo were small companies not so long ago.’

All it needs is one success story. And if it has been proven to be profitable for the bank, ‘then everybody would want to join the party’.

If there are no takers among the banks, Prof Davies suggests that start-ups think of service provision as a revenue stream that may be used to fund their research projects.

‘If you can get to a point where it’s wealth-creating enough, then it’s a self sustaining cycle,’ he says. ‘The wealth you create, you put a percentage back to do the basic science. The trick is to keep doing the basic blue sky science that is going to generate the ideas of the future.’

Source : Business Times - 03 Nov 2008

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Storm has passed but it’s not all calm yet

Storm has passed but it’s not all calm yet

Focus this week on presidential poll, major earnings reports, jobs data

By ANDREW MARKS

NEW YORK CORRESPONDENT

THE US stock market may have enjoyed its first back-to-back day of gains for the first time in a month last Friday, but Wall Street was more than happy to put the worst month of losses since October 1987 behind it and look forward to the start of a new month.

Looking for gains: Market strategists are expecting another week of gains this week. The wholesale selling undertaken by so many hedge funds under pressure of redemptions from their investors - a contributing factor to the massive end of day trading swings - appears to be calming, they say
‘This has been an incredible, chaotic month, one I don’t think we’ll see again for a long, long time. I won’t predict that we’ll see an end to the volatility that has been roiling the stock market for the last several weeks, but I do think we’ll see less of the volatility that we’ve been experiencing,’ said Jim Awad, managing director of Zephyr Management.

Indeed, the wholesale selling undertaken by so many hedge funds under pressure of redemptions from their investors - a contributing factor to the massive end of day trading swings - appears to be calming, Wall Street traders said.

Wall Street market strategists are also expecting another week of gains for stocks in the coming week, owing partly to the presidential election and partly to hopes that stocks finally bottomed on Monday, Oct 27. On Tuesday, the market rallied a stunning 877 points, leading stocks to their best weekly gains since 1974.

‘I think everyone’s just going to be relieved that we survived the storm of the last month. We’re not out of the woods by any means, but the credit markets are finally thawing a bit, and investors aren’t looking over their shoulders constantly, wondering when the next major bank is going to fail or need a multi-billion dollar rescue,’ said Mr Awad.

That relief could soon enough turn to consternation again when the October jobs report comes out on Friday, but even if the market sours again, it will be nothing like the suffering inflicted upon investors last month, when the Dow Jones Industrials lost more than 1,500 points, or 14 per cent, and the S&P 500 dived 17 per cent. The Nasdaq composite fared worst of all the major indexes, losing nearly 18 per cent.

On Friday, the Dow gained 144 points, or 1.6 per cent, to finish at 9,325. The S&P 500 gained 14 points, or 1.5 per cent, to 968, while the Nasdaq Composite climbed 22 points, or 1.3 per cent, to 1,720.

For the week, blue chips climbed 11.3 per cent. The S&P 500 rose 10.5 per cent, while the Nasdaq advanced 10.9 per cent.

This week investors will be focusing on the presidential elections.

Senator Barack Obama is favoured to win, which could be interpreted as bad for stocks, given that the Democratic candidate favours higher tax rates and fewer shelters for businesses, as well as higher capital gains taxes for individuals.

But analysts like Mr Awad think investors will focus on the measures the new president will have to take to address the economic recession.

‘After the US presidential election you will start to hear plans for massive re-flation of the economy by whomever wins. This should convince the markets that we are on the way to a slow recovery in the back half of 2009,’ said Mr Awad.

More important than who wins, however, is the certainty that Nov 5 will bring to the political landscape after a year of wondering who will be the next president, market strategists said.

This week will bring earnings reports from 84 S&P 500 companies - including Berkshire Hathaway, Cisco Systems, MasterCard and Time Warner. Currently, third quarter earnings have contracted by 11.7 per cent, which would mark the fifth consecutive quarter of negative growth, according to Thomson Reuters.

On the economic front, auto sales, ISM manufacturing data and construction spending is due today. Factory orders are reported tomorrow, and ADP’s employment report comes on Wednesday. Thursday brings third quarter productivity and chain stores reporting monthly sales, but Friday’s jobs report is the week’s highlight. Economists expect the loss of 200,000 non-farm payrolls in October, and a rise in the unemployment rate to 6.3 per cent, from 6.1 per cent.

Source : Business Times - 03 Nov 2008

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Singapore Construction industry seen resisting downturn

Singapore Construction industry seen resisting downturn

NatSteel president cites public housing demand, projects

By OH BOON PING

(SINGAPORE) Singapore’s construction industry is unlikely to slump despite the dim economic outlook, according to the head of the biggest steelmaker here.

In a recent interview with The Business Times, NatSteel president TV Narendran pointed out that public housing demand remains firm, and there are still a number of public projects in the pipeline.

‘Early this year, the government postponed about $5 billion worth of projects due to overheating in the market. Even though there may be some slowdown and softening in steel prices, we think the public projects can still make up for the drop in private developments,’ he said.

Mr Narendran’s comments come as Singapore braces for a lean year ahead, with the economy having slipped into a technical recession and likely to end 2008 with about 3 per cent GDP growth.

Given the deteriorating economic climate, the fear among some is that Singapore’s construction industry may go underwater again - after having recently only recovered from a painfully prolonged slump.

However, Mr Narendran is not perturbed, pointing to strong orders and cautious optimism among industry players.

‘Today, the total value of all projects is at $27 billion, while the worst we have seen was $11 billion.

‘The sense we get is that demand may drop to $17-18 billion in the next three years, but this is still higher than the previous bottom.’

Part of this demand, he says, stems from the upcoming integrated resorts and new expressways.

He should know, given that NatSteel now controls more than 60 per cent of the steel market here.

The company, which was bought over by Tata Steel in 2005, derives some 60 per cent of its business from Singapore, and 40 per cent from foreign markets such as Australia.

Plus, Mr Narendran still sees pockets of tightness in the construction sector, given the small number of contractors in the market.

The government earlier said that it will help cushion any slide in demand if the construction sector should get hit by the financial turmoil. This year, domestic construction demand is estimated to reach between $27 billion and $32 billion, and the government stands ready to bring forward the public projects that were earlier deferred.

But Mr Narendran concedes that steel prices have been volatile in recent months, and that means the company has to peg its prices to some underlying index for longer-term contracts. This also eases the pressure on margins.

Business concerns aside, NatSteel remains socially active.

Its charity commitments include pledging $1million to fund community initiatives over the next three years. More than $150,000 have been donated to NatSteel’s adopted charities - St Joseph’s Home and the Society for the Physically Disabled.

In addition, its parent Tata Steel is also the sponsor of a nationwide quiz - Tata Crucible - that offers more than $17,000 worth of cash prize money.

Source : Business Times - 03 Nov 2008

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Super rich suffer paper losses in October rout

Super rich suffer paper losses in October rout

By CHEW XIANG

(SINGAPORE) Around the world the absurdly wealthy got badly bloodied in October’s market freefall, with paper losses in the hundreds of billions after their companies’ stock prices plummeted.

A few billion poorer: Bill Gates lost US$3.2 billion in the value of his Microsoft shares; Warren Buffett could have lost US$5.29 billion based on his 350,000 Berkshire shares; Lakshmi Mittal may have lost US$50 billion on paper since May; and Li Ka-shing’s wealth just about halved in October to US$14 billion
In the US, shares lost US$2.5 trillion in October, according to the Dow Jones Wilshire 5000 Composite Index, which tracks almost all actively traded stocks there. It’s the worst drop since October 1987, when Black Monday saw the Dow Jones Industrial Average lose 22.6 per cent in a day.

In India, the Sensex lost 23.9 per cent through October; Shanghai was down 24.6 per cent, and Japan’s Nikkei dropped 23.8 per cent. Hong Kong fell 22.5 per cent, while the Straits Times Index shed 24 per cent.

Not surprisingly, the world’s richest people became a lot poorer over the month.

Billionaire Bill Gates lost US$3.2 billion in the value of his Microsoft shares, taking his worth down to just under US$18 billion. This includes only the nominal value of his holdings in the software giant.

Fellow American billionaire Warren Buffett saw the share price of his investment holding company Berkshire Hathaway drop US$15,110 over October to a still-healthy US$115,490 per share for the month. This meant a US$5.29 billion loss based on his 350,000 Berkshire shares.

Earlier last month, Forbes Magazine said Mr Buffett had overtaken Mr Gates as the wealthiest American, based on share price movements in September. It said that while 17 billionaires on Forbes’ list lost more than US$1 billion in that month, Mr Buffett managed to increase his worth by US$8 billion to US$58 billion.

In the same month, Microsoft founder Mr Gates saw his fortune fall to US$55.5 billion from US$57 billion, according to Forbes’ calculations. He had been ranked top of its American rich list for 15 years.

Elsewhere, the world’s second richest man Carlos Slim, whose telecommunications empire gave him a net worth estimated at US$58 billion at end-September, lost US$20 billion in the first three weeks of October, according to CNBC.

ArcelorMittal’s Lakshmi Mittal, who along with his family owns 623 million shares, or 43 per cent, of the steel giant, may have lost US$50 billion on paper since May, according to reports from India.

In October, ArcelorMittal’s share price fell over 40 per cent to just over 20 euros on several European exchanges, valuing his holdings at about 12.5 billion euros (S$23.5 billion) - down 9.5 billion euros in just four weeks. The company is listed in Amsterdam, Brussels, Madrid and Paris, as well as New York, where it last traded at just over US$26.

Closer to home, Hong Kong tycoon Li Ka Shing’s wealth just about halved in October, based on his holdings in Canadian energy company Husky Energy, Hong Kong’s property giant Cheung Kong Holdings and flagship conglomerate Hutchison Whampoa.

Mr Li may be worth about US$14 billion now, compared to about US$26 billion at end-September, as Husky has seen its share price fall from C$44.20 at the start of the month to C$36.20 last Friday. Cheung Kong and Hutchison Whampoa closed the month 15 and 30 per cent down respectively.

In Singapore, Kwek Leng Beng and family may have lost S$780 million from their holdings in property firm City Developments through Hong Leong Holdings, Hong Leong Investment Holdings and Hong Realty - collectively worth S$2.7 billion when October began.

On Friday, City Development shares traded at S$6.30, down from S$8.79 at the start of October. Mr Kwek and his family were estimated to be worth US$1.2 billion when Forbes magazine published its latest Singapore rich list in August.

Veteran banker Wee Cho Yaw lost almost S$1 billion in the month after his flagship United Overseas Bank lost 22.5 per cent in October to S$13.02. He is now worth about S$3.2 billion, down from more than S$4 billion.

Source : Business Times - 03 Nov 2008

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