Singapore Govt will not implement measures to stimulate property sector

Singapore Govt will not implement measures to stimulate property sector

By Wong Siew Ying,

SINGAPORE : The Singapore government will not introduce measures to stimulate demand or prop up prices artificially in the property sector.

Speaking at an industry event on Wednesday, National Development Minister Mah Bow Tan said such efforts are not sustainable. However, the government will study suggestions by market players on how to help the property sector.

Developers are feeling the heat from the economic downturn, credit crunch and poor consumer confidence, and many new project launches have been shelved.

To boost property demand, some developers hope the government could relax some of its policies, such as reviving the Deferred Payment Scheme, reducing the development charge rate and introducing property tax exemptions.

But the national development minister said there are limits to what the government can and should do.

Mr Mah said: “We cannot dictate to banks that they should extend loans to companies or individuals with weak financial standing. Any measure seen to be knee-jerk or excessive might even weigh market sentiment down further.

“It is in our interest to ensure that the property prices move in line with economic fundamentals, as it affects home ownership, asset values, retirement savings and other sectors of the economy.”

Mr Mah said the government will not hesitate to act if needed. It could roll out public sector projects which have been deferred to boost the industry when construction costs come down, and the pressure on manpower and building materials ease.

The deferred projects are worth some S$4.7 billion. They include the construction and upgrading of schools, civic and community institutions, as well as other public infrastructure.

Mr Mah said a number of major projects secured in past years will also create jobs and sustain capital spending in the economy.

Together, the real estate services and construction sectors accounted for about 9.6 per cent of overall GDP and 13 per cent of total employment in Singapore in 2007.

The Real Estate Developers’ Association (REDAS) said market stability and restoring confidence are important in helping the sector weather the economic storm.

REDAS added that developers should take this opportunity to improve their products and get ready for the next upturn.

“Pricing alone does not lead to sales volume; sentiment and confidence leads to sales volume. A tripatite plan of action is needed between developers, financiers and the government through moderating new supply, shoring demand and introducing fiscal measures to help ease funding for the industry,” said Simon Cheong, president of REDAS.

The association said it will work closely with the government to provide timely market feedback. Despite the tough times, REDAS also hopes developers will continue to drive sustainable development. - CNA /ls

 
Source : Channel NewsAsia  - 27 Nov 2008

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Citigroup’s rescue correct but unpleasant

Citigroup’s rescue correct but unpleasant UNDER different circumstances, there would be few supporters of an American government rescue for Citigroup. If things were different, the Bush administration, famously pro-private enterprise, would not have agreed to a multibillion-dollar bailout. For surely, an institution that used to profit handsomely from the market should be subject to the judgment of the market. But then, if the situation were different, Citigroup would not be in the trouble it is in. In the circumstances, there was no option but to save the bank. Lessons were learnt with Lehman Brothers, which was allowed to fail because it was deemed not among those too big to let go. But allowing it to fail led to consequences that could not have been imagined. Now, to let Citigroup go down could result in repercussions that dwarf even those arising from Lehman’s collapse. Citigroup truly is too big to fail. Its collapse would lead to a chain reaction of tumbling markets around the world. The problem - and this bears repeating - is that there are other American banks in the same pickle. It is not unlikely that they will now seek equal treatment from the federal government. Moreover, with its government backing, Citigroup might get better terms on credit in the marketplace. This would put it at an advantage, when the entire industry is in the same dismal position. Washington’s hope is that Citigroup will be a one-off (sure, there has been a series of ‘one-offs’ in this crisis), and that the rescue will build enough confidence into the system to restore market order. Only time will tell. Meanwhile, Washington will want to have the chequebook handy, as the government is now under pressure to guarantee the survival of the whole financial industry. There is that lesson from Lehman again: the atmosphere of uncertainty that means impossible-to-determine consequences for inaction. Finally, there is no escaping the fact that Citigroup’s rescue dials up the moral hazard gauge. Details now emerging suggest there had been appalling risk management at the bank. Essentially, Washington was making good several years of bad decisions. While there is no question Citigroup needed to be saved despite itself, the issue is how to ensure this does not send the message that Washington will always be available to underwrite cavalier habits. In Citi’s case, the individuals responsible for the debacle should not be allowed to escape accountability. While these are extraordinary times that require unorthodox responses, the US government needs to telegraph that there cannot be further extraordinary situations in the future. Source : Straits Times - 27 Nov 2008 Singapore Property - Buy, Sell, Rent, Invest Mindy Yong (+65)91002985 mindy@mindyyong.com

Mah sees softening of property prices

Mah sees softening of property prices 

Future movements will depend on how industry adjusts to conditions 

By Michelle Tay 

PROPERTY prices will inevitably soften and demand will weaken amid slower economic growth, National Development Minister Mah Bow Tan said yesterday.
Private housing prices fell 2.4 per cent in the third quarter, and further price movements will ‘depend on the severity of the economic slowdown’.

Mr Mah was speaking at the 49th anniversary dinner of the Real Estate Developers’ Association of Singapore (Redas) at the Shangri-La Hotel.

He said future price movements will also depend on the ‘ability of the industry to make adjustments in response to the changes in economic conditions’.

Meanwhile, Mr Simon Cheong, Redas president and chief executive of upscale residential developer SC Global Developments, said he expects construction prices to ease off with the trend of falling oil prices and easing inflation.

‘Current pressure on construction services (will) begin to moderate once the lag in demand kicks in with a slowdown in new commitments by developers,’ he said.

Mr Mah also addressed recent moves by Redas to present market analysts with other sources of market data after they had drawn bearish conclusions about the industry recently.

Redas had said the analysts’ findings were based on official numbers from the Urban Redevelopment Authority (URA), which they felt are too general. Reports said the industry body met property analysts from local and foreign research firms two weeks ago to advise them that URA data may not give an accurate picture of specific sections of the market.

Mr Mah said the Government has a vital role in guarding against ‘irrational market behaviour, such as excessive speculation, that is not in sync with economic fundamentals’, to ensure the long-term stability and smooth functioning of the property market.

Mr Cheong agreed: ‘The market is at best currently fragile and nervous. Market stability is important to prevent a widespread decimation of asset values…Redas will do its best to work closely with the Government to provide timely market feedback to facilitate a timely and effective response that the property market needs.’

But there are limits to what the Government can and should do, said Mr Mah. For one thing, it cannot work against market forces and try to prop up property prices artificially.

Mr Mah explained: ‘Such efforts are not sustainable and will not be beneficial to the health of the property market in the long run. Any measure seen to be knee-jerk or excessive might even weigh market sentiment down further…It is in our interest to ensure that the property prices move in line with economic fundamentals as it affects home ownership, asset values, retirement savings and other sectors of the economy.’

But Mr Cheong said: ‘Only with confidence will demand return to the market.’ He advised Redas members to ‘take this opportunity to do our house cleaning, improve our product and get ready for the next upturn’.

‘Pricing alone does not lead to sales volume. Sentiment and confidence lead to sales volume.’
Source : Straits Times - 27 Nov 2008

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Tourists trapped

Tourists trapped 

Group bound for airport is blocked by protesters wielding weapons 

By Karamjit Kaur & Nicholas Yong 
  
Tourists stranded at Bangkok’s Suvarnabhumi Airport yesterday awaiting transportation back to their hotels. Airport officials cannot say when operations will resume. — PHOTO: ASSOCIATED PRESS

AS SOON as he heard that anti-government protesters were planning to take over Bangkok’s Suvarnabhumi Airport on Tuesday, Mr Lee Wing Leong and six friends packed their bags and jumped into taxis.
But they were too late.

‘We couldn’t even get to the airport because the protesters had blocked the highway and there was a massive jam,’ the sales executive told The Straits Times in a telephone interview from his hotel room yesterday.

He and the members of his group are among dozens of Singaporeans who have been stranded in the Thai capital since thousands of protesters marched on the airport, forcing officials to shut it down.

Mr Lee said he was within sight of members of the People’s Alliance for Democracy, some of whom opened fire on government supporters the same day.

‘It was quite nerve-wracking,’ said the 32-year-old. ‘Many were armed with poles, knives and swords and some even had guns.’

Mr Lee and his friends were forced to turn back, and it took them almost three hours to reach their downtown hotel, instead of the usual 30 minutes. They have not left its confines since.

‘It seems like business as usual on the streets outside and people are going about doing their normal things but we don’t want to take any risks. So we are staying put, glued to the television and listening to the radio for any updates.’

Apart from those waiting anxiously in their hotel rooms, many travellers are marooned at the airport itself.

Singapore Airlines spokesman Stephen Forshaw said the carrier has a group of stranded customers bound for the Haj pilgrimage in Jeddah.

‘They are now stuck at Bangkok airport. Our staff are trying to make them more comfortable, but efforts to allow them to leave on a flight have been unsuccessful,’ he said.

Singaporeans scheduled to leave Bangkok in the next few days are keeping their fingers crossed that calm will soon return.

Information technology consultant Joanna Zhuang, 27, will complete a three-week training stint in the Thai capital next week.

She said: ‘Everything is normal for us but my colleagues and I are worried about whether we can go home if this carries on.’

Ms Sally Chua, 38, a manager in the automotive industry, is in southern Thailand and scheduled to fly home today through Suvarnabhumi airport. ‘Now I don’t know if I can go home,’ she said.

Airport officials have not been able to say when normal operations will resume.

Flights cancelled
THIS WON’T HELP THAILAND

‘I understand these people want change, but to shut down an airport for their cause is a bit much and it won’t help this country.’

American Gary Biermann, who was resigned to not getting home in time for Thanksgiving on Thursday.

WE’LL NEVER COME BACK

‘Our main concern is to get the first flight home and never come back.’

Australian newlywed Robert Grieve, 32, drinking a can of Heineken at 9 am yesterday as he leaned against a vacated Thai Airways check-in counter.

REGRETTING THE TRIP

‘We all came to Thailand because we love Thailand but this has left a very bad feeling.’

British retiree Jean McCartan.

FEELING UNSAFE

‘There were lots of riot police with shields and batons. It was quite intimidating. I just want to be safe back in bed.’

Ms Marie Pritchard, who was trying to make her way home to Wales.

EXHAUSTED AND HOMESICK

‘I just want to go home. I don’t care what has happened. This can’t go on any longer.’

Dutch tourist John Crushak, lying on a makeshift bed of clothes and suitcases.

Source : Straits Times - 27 Nov 2008

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Packed and ready but nowhere to go

Packed and ready but nowhere to go 

Early morning passengers greeted with flight cancellations 

By Karamjit Kaur & Carolyn Quek 

HUNDREDS of Bangkok-bound travellers showed up at Changi Airport yesterday morning but never got to board their planes.
All 19 flights scheduled to depart for the Thai capital from 7.10am to 10.35pm were cancelled, a day after anti-government protesters stormed the main terminal of Bangkok’s Suvarnabhumi Airport, shutting it down.
With no indication yet of when normal operations would resume, carriers operating between the two cities - Singapore Airlines, Thai Airways, Cathay Pacific, Tiger Airways, Jetstar Asia and Thai AirAsia - are advising customers to track developments to flight schedules online.

At Terminal 1 at 6am, more than a hundred travellers were waiting to catch their flights on Jetstar and Thai Airways. Many were ignorant of the situation in Bangkok. Lamented civil engineer Annalingam Selvakumar, 43, who had planned a six-day holiday with his family: ‘We did not watch the news last night. We are disappointed but have no choice.’

Jetstar’s commercial head Raphael Saw said 40 per cent of those booked on the 7.15am flight had turned up.

At the Thai Airways counter, people were still being checked in for the 8.10am flight. There was some confusion and unhappiness when travellers were told the flight had been delayed till 11am, only to be told later that it had been cancelled.

Among them were secondary school teacher Tanveer Khan, 33, and his 17-year-old sister Jumanah, who were on their way to Dhaka via Bangkok. Refusing to abort their trip, they left last night on a non-stop SIA flight to Bangladesh.

Other travellers, like Mrs Connie Cheong, 51, who was all geared to shop till she dropped with her husband and two teenage girls, changed their minds. The administrative officer and her family will go to Kuala Lumpur by bus instead.

Because of the uncertain conditions, airlines said travellers who choose to cancel their bookings will receive full refunds. Passengers may postpone their flights or opt for another destination and pay the difference in fares or fees.

While Singapore residents went home, airlines did what they could for transit passengers. Ms Akira Rotjanawongchai, 35, an Australian citizen en route from Adelaide, said SIA arranged for her party to stay the night at the Elizabeth Hotel.

Customers with forward bookings have been calling their travel agents to cancel or postpone them.

Chan Brothers, which has 20 people due to leave for Bangkok this week, advised customers to change their plans.

Political instability in the Thai capital in recent months has seen fewer Singaporeans heading there, say travel agents, warning that a prolonged crisis would seriously hurt Bangkok’s tourism industry.

The Singapore-Bangkok air route is one of the busiest out of Changi. In the first 10 months of the year, the Civil Aviation Authority of Singapore recorded 2.29 million passenger movements between the two cities.
Flights cancelled
STUCK IN PATTAYA

‘After an 11-hour flight, we had to wait another three to four hours to get our luggage, because the airline had no ground crew in Pattaya. We are really not sure when we are flying back to Singapore.

Nobody seems to know anything. Right now, I really just need a shower.’

Mr Joshua Goh, 38, an executive in a youth organisation, speaking to The Straits Times by phone from Pattaya. Mr Goh’s Singapore-bound flight from Jerusalem with a stopover in Bangkok was diverted.

SCARED TO TRAVEL

‘I am now scared to go back because the airports and roads are closed.’

Singaporean housewife Wanthong In Kaew, 45, who had planned to go to Bangkok and on to Chiang Rai to visit her mother. She was among hundreds left stranded at Changi Airport yesterday morning.

CAUGHT UNAWARES

‘We wanted to come here very early, so we slept very early.’

A Singapore Airlines traveller who wanted to be known only as Mrs Heng, on why she did not know about the protests in Thailand. Her husband and two teenage girls were travelling on a 7.10am Tiger Airways flight. She was to take the 8.45am SQ flight. Both flights were cancelled.

 
Source : Straits Times - 27 Nov 2008

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Thailand Protesters wreak chaos

Thailand Protesters wreak chaos 

Bangkok airport siege by anti-govt demonstrators leaves thousands stranded
 
By Carl Skadian, News Editor 
  

THE unprecedented takeover of Bangkok’s international airport by anti-government protesters has left thousands of travellers stranded, forced untold others to change their holiday plans, and led airlines from Singapore to Scandinavia to cancel flights.

Much more damage, however, is being done to Thailand’s reputation, experts say.
The two-year-old Suvarnabhumi Airport, with ambitions of being a premier regional aviation hub, is the 18th largest in the world in terms of passenger traffic and the main gateway to Thailand for tourists and businessmen.

But aviation analyst Shukor Yusof at Standard & Poor’s Equity Research noted that the airport had been plagued by various problems from Day One, and called the mob takeover ‘the nail in the coffin’.

‘It’s shocking that thousands of people can just descend on the airport and shut it down,’ he said.

News agencies reported last night that a Bangkok court had granted the airport operator an injunction to evict the protesters, but there was no indication that this would have any effect.

The takeover has put Thailand’s hugely successful tourism industry in jeopardy as the high season approaches.

‘This is very bleak news for the economy,’ said Barclays Capital economist Leong Wai Ho, noting that the crisis was occurring against the backdrop of the global slowdown. ‘It’s going to cause dislocation in traffic and disrupt cargo flows.’

Several countries - Singapore, China, France, New Zealand and the United States, among them - have warned citizens to avoid travelling to Bangkok, or to act with caution if already in Thailand.

At Suvarnabhumi yesterday, many travellers, weary from the waiting and without food or drink, sprawled atop heaps of luggage and some said they regretted making the trip.

British retiree Jean McCartan told the Agence France-Presse news agency: ‘We all came to Thailand because we love Thailand, but this has left a very bad feeling.’

Though some tourists were being let out, a quick check of the departure schedule at the airport’s website told of the long haul ahead for them.

British Airways Flight BA 9 to Sydney: Cancelled. Thai Airways Flight TG 630 to Hong Kong: Cancelled. Cathay Pacific Flight CX 751 to Mumbai: Cancelled.

The unhappiness extended well beyond those stuck in Thailand. Thousands planning year-end trips there have been forced to make alternative plans.

At Changi Airport, hundreds turned up, many with children in tow, only to find all flights to Bangkok, whether by Singapore Airlines, Thai Airways, Jetstar Asia or others, cancelled.

Similar scenes played out elsewhere, as airlines from several countries worldwide, including Japan, Spain and Germany, cancelled flights.

Mrs Connie Cheong, 51, who had planned to leave for Bangkok yesterday with her husband and two teenage daughters, opted for a refund on her tickets when told flights to Bangkok from Changi Airport were off.

The administrative officer said the family would take a coach to Kuala Lumpur instead.

‘We are disappointed of course, but it’s good we got the travel refund. If the flight was still on, I think we would still have gone ahead,’ said Mrs Cheong.

‘I think the shopping area is quite safe.’
S’pore-run hotels face cancellations
SINGAPORE firms running hotels and serviced apartments in Thailand have been hit by some cancellations, amid the political unrest in the country.
Another Singapore company was forced to postpone the launch of a joint venture luxury condominium.

But for most companies from the Republic with operations in Thailand, it has generally been business as usual, though with security significantly beefed up.

Checks with United Overseas Bank (UOB), and developers CapitaLand and Keppel Land indicated they had suffered no interruptions to operations there.

A UOB spokesman said: ‘Where necessary, we will take appropriate measures to safeguard staff, customers and the bank’s interests.’

SingTel said it was closely monitoring developments together with its Thai associate AIS.

However, Hup Soon Global, whose main business in Thailand is assembling and distributing tractors and selling garage equipment, has had to change its plans. It postponed the launch of a joint-venture residential project in Bangkok scheduled for tomorrow.

Banyan Tree resorts, Frasers serviced residences and Ascott serviced residences each said they had been hit by cancellations of bookings but are fully operational, though with tighter security.

Mr Choe Peng Sum, the chief executive of Frasers Hospitality, said all three of its serviced residences in Bangkok have experienced a few cancellations from short-term leisure guests. He said residents have been given updates on the unrest, and a list of numbers including those of airlines and embassies, and even the general managers’ mobile numbers.

He added: ‘All properties have been put on full security alert… Unless the volatile situation persists, we do not expect our extended stay market to be affected in the near term.’

A spokesman for Ascott International Management said its business is mainly long-stay guests so occupancy is ‘not adversely affected’. There have been a few cancellations.

Banyan Tree has been keeping guests updated with the news. ‘As an added precautionary measure, we have also tightened security around our hotel premises,’ said its spokesman in Singapore.

Banyan Tree Bangkok had been affected by some cancellations.

The situation around Grand Millennium Sukhumvit in Bangkok is normal, though there have been several cancellations of rooms and some ‘no shows’, said a Hong Leong Group spokesman. Millennium Resort Patong in Phuket also experienced some room cancellations.

According to IE Singapore, Thailand was Singapore’s ninth largest trading partner last year, with total bilateral trade of $31.4 billion. Singapore was Thailand’s third largest investor last year, with projects worth $1.56 billion.

ALVIN FOO & JOYCE TEO

Source : Straits Times - 27 Nov 2008

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Occupancy costs fall in Singapore: CBRE

Occupancy costs fall in Singapore: CBRE

But survey finds Republic is world’s 9th most expensive office market
By UMA SHANKARI
(SINGAPORE) The republic is still one of the most expensive places in the world to do business in, even though office occupancy costs here have dropped, the latest survey by CB Richard Ellis (CBRE) shows.

As in the firm’s previous survey in May, Singapore was the world’s ninth most expensive office market, though occupancy cost dropped to US$135.13 per square foot per year from US$139.31 in May.

In CBRE’s November 2007 survey, Singapore posted the world’s biggest 12-month increase in office occupancy costs. But in the May 2008 survey, it dropped to third place. And in the latest ranking, it is 13th.

Occupancy costs here rose 27.8 per cent in the 12 months to November 2008, down from 86 per cent in the 12 months to May 2008. CBRE’s chief global economist Raymond Torto said that globally the rate of change is generally slowing, and in some markets the pricing direction is down. ‘Our current perceptions are greatly affected by the current economic malaise.’ he said. ‘We tend to forget how fast rents and occupancy costs were rising over the past 12 months. The turn in rent trajectory will provide some relief to occupiers and angst to owners.’

Abu Dhabi in the United Arab Emirates (UAE) registered the fastest-growing office occupancy costs in CBRE’s November 2008 Survey. Costs there jumped 94.6 per cent in the past 12 months.

‘The rise in occupancy costs in the UAE has reflected market fundamentals - limited supply of quality office space and high demand from international firms, primarily law firms, financial institutions and real estate and construction companies planting a footprint in the UAE,’ CBRE said. Ho Chi Minh City in Vietnam, which registered the fastest-growing occupancy costs CBRE’s May 2008 ranking, fell to second spot in the latest survey. Costs there rose 51.4 per cent in the past 12 months.

London’s West End and Moscow remain the world’s two most expensive office markets. Hong Kong’s CBD, Tokyo’s Inner Central District and Mumbai’s Nariman Point round out the top five.

 
Source : Business Times - 27 Nov 2008

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Singapore Redas urges 3-way plan to boost confidence

Singapore Redas urges 3-way plan to boost confidence
(SINGAPORE) Real Estate Developers Association of Singapore (Redas) president Simon Cheong called last night for a three-way action plan involving developers, financiers and the government to shore up confidence in the property market.
The plan would involve moderating new supply, supporting demand and introducing fiscal measures to help ease funding for the industry, Mr Cheong said.

‘For the real estate market to ride out the storm created by the global credit crisis, two imperatives stand out,’ he said. ‘First, market stability is important to prevent widespread decimation of asset values. And second, confidence must be shored up by keeping credit markets functioning.

‘Only with confidence will demand return to the market. Pricing alone does not lead to sales volume. Sentiment and confidence lead to sales volume.’

Mr Cheong was giving the president’s address at Redas’s 49th Anniversary dinner, the theme of which was ‘Living In a World Class Sustainable City’.

The event at Shangri-La Hotel was well attended, with even Redas patron Kwek Leng Beng, executive chairman of Hong Leong Group, making an appearance. Before the dinner, Redas top brass held private talks with National Development Minister Mah Bow Tan, who was guest of honour at the function.

 
In his speech, Mr Cheong shied away from specifying what measures developers would like the government to introduce to help the property market.

But property consultancy Knight Frank’s managing director Tan Tiong Cheng made a few suggestions. ‘Tax concessions affecting the property market could help reduce business costs and provide relief to developers immediately, yet leave the government flexibility to withdraw the measures when the market improves,’ he said.

He suggested the authorities reinstate the deferment of stamp duty payment to the date of issue of Temporary Occupation Permit for properties under development. At present, buyers have to pay stamp duty within 14 days of their option to purchase being accepted.

The government should also revert to the formula of calculating development charges based on 50 per cent of appreciation in land value, instead of the current 70 per cent.

And property tax exemptions for vacant land, land under development and completed industrial and commercial buildings would help cut the cost of doing business and provide relief to developers so they don’t have to rush construction of new projects, given weak demand, Mr Tan said. He also called on the authorities to consider reviewing the stamp duty rate, which now peaks at 3 per cent.

Last month, the Ministry of National Development (MND) announced a halt in state land sales through the confirmed list until first-half 2009. Mr Tan suggested MND could go further and announce a freeze on confirmed-list land sales for the next two years.

‘This would provide a psychological booster and create more confidence and stability in the market, so banks and sellers don’t panic,’ he said.

He also suggested extending the CPF Housing grant available to first-time buyers of executive condos (ECs) and resale HDB flats to private home buyers. ‘If necessary, minimum holding conditions could be imposed for private home buyers taking the CPF grant, which is what happens for ECs,’ he said.

Source : Business Times - 27 Nov 2008

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Limits to what Singapore govt can do, says Mah

Limits to what Singapore govt can do, says Mah It cannot dictate to banks on loans or work against market forces on property By KALPANA RASHIWALA (SINGAPORE) National Development Minister Mah Bow Tan told developers yesterday ‘there are limits to what the Government can and should do’ to ensure the long-term stability and smooth functioning of the property market. Toast to the future: (from left) Simon Cheong, president of Redas; MND Minister Mah; Kwek Leng Beng, Redas’s patron, at its 49th anniversary ‘For instance, we cannot dictate to banks that they should extend loans to companies or individuals with weak financial standing,’ he said. ‘We also cannot work against market forces and try to prop up property prices artificially. Such efforts are not sustainable and will not be beneficial to the health of the property market in the long run.’ Speaking at the Real Estate Developers Association of Singapore’s 49th anniversary dinner at the Shangri-La Hotel, Mr Mah said any action the Government takes must be carefully calibrated. ‘Any measure seen to be knee-jerk or excessive might even weigh market sentiment down further,’ he said. ‘It is in our interest to ensure that property prices move in line with economic fundamentals, as this affects home ownership, asset values, retirement savings and other sectors of the economy.’ But he gave the assurance that the Government will keep a close watch on the situation and will not hesitate to take further measures if necessary. Last month, the Ministry of National Development (MND) suspended Government Land Sales through the confirmed list until the end of first-half 2009. Since then, MND has received various suggestions from Redas and other stakeholders on how to help the property sector. ‘We will study these suggestions as we continue to monitor the property market closely,’ Mr Mah said yesterday. He also told developers that with slower economic growth ‘it is inevitable that demand will be lower and (property) prices will soften’. The official private home price index slipped 2.4 per cent in the third quarter from Q2. On a more upbeat note, Mr Mah said the committed pipeline of major projects secured in the past few years will create a steady stream of job opportunities and sustain capital spending in the economy in the next few years. ‘At Marina Bay alone, we have invested close to $5.7 billion in infrastructure and we will continue to invest to support the future growth of Marina Bay and to enhance connectivity with the existing city,’ he said. The Government will also continue with several key infrastructure and housing projects to support medium to long-term economic growth and social needs, as well as to rejuvenate older estates. Mr Mah stressed the importance of the real estate sector. First, real estate services and construction together accounted for about 9.6 per cent of overall GDP and 13 per cent of total employment in Singapore in 2007. Second, the health of the property market affects other major sectors of the economy. ‘Third, as a country with the highest rate of home ownership of more than 90 per cent, the property sector is where most of us have invested our hard-earned lifelong savings,’ Mr Mah said. ‘Our economic prospects in the medium term and our fundamentals remain strong. I urge you to continue building up capabilities within the industry and use this period to strengthen your competitive advantages so you are well prepared to capitalise on opportunities that may emerge when the current economic uncertainties subside.’ Source : Business Times - 27 Nov 2008 Singapore Property - Buy, Sell, Rent, Invest Mindy Yong (+65)91002985 mindy@mindyyong.com

Obama slams car executives for being ‘tone deaf’ - WASHINGTON

Obama slams car executives for being ‘tone deaf’ - WASHINGTON (WASHINGTON) President- elect Barack Obama has chastised US car executives for being ‘tone deaf’ for flying on corporate jets to Washington to beg for bailout money, and said he believed that bank executives should forgo their end-of-year bonuses. In the advanced excerpt of an interview to be broadcast yesterday and released by ABC News late Tuesday, the president-elect focused on responsibility. Bank executives forgoing bonuses is ‘an example of taking responsibility’, Mr Obama said. ‘If you are already worth tens of millions of dollars, and you are having to lay off workers, the least you can do is say, ‘I’m willing to make some sacrifice as well because I recognise that there are people who are a lot less well off, who are going through some pretty tough times’,’ Mr Obama told ABC News. As for the incident in which the heads of Ford, Chrysler and General Motors flew their private jets to Washington last week to ask Congress for bailout money, Mr Obama said: ‘I thought maybe they’re a little tone deaf to what’s happening in America right now.’ He described it as ‘a chronic problem, not just for the auto industry . . . (but) for the captains of industry generally’. ‘When people are pulling down hundred million dollar bonuses on Wall Street, and taking enormous risks with other people’s money, that indicates a sense that you don’t have any perspective on what’s happening to ordinary Americans,’ he said. And when the ‘auto makers are getting paid far more than their counterparts at Toyota, or at Honda, and yet they’re losing money a lot faster than Japanese automakers are, that tells me that they’re not seeing what’s going on out there’. Mr Obama said that he hoped his presidency will help ‘usher in . . . a return to an ethic of responsibility’, adding: ‘That if you’re placed in a position of power, then you’ve got responsibilities to your workers. You’ve got a responsibility to your community. Your shareholders.’ - AFP Source : Business Times - 27 Nov 2008 Singapore Property - Buy, Sell, Rent, Invest Mindy Yong (+65)91002985 mindy@mindyyong.com