Singapore Prestige Brand Award honours successful household brands

Singapore Prestige Brand Award honours successful household brands

By Timothy Ouyang,

SINGAPORE : Stronger brands can help small and medium enterprises (SMEs) protect their margins better than their competitors in the current climate of uncertainty and rising costs. This was revealed at the launch of this year’s Singapore Prestige Brand Award (SPBA).

The awards, jointly organised by the Association of Small and Medium Enterprises (ASME) and Lianhe Zabao, is aimed at promoting good branding practices amongst SMEs.

A new category - the SPBA Hall of Fame Award - has been included this year. It honours outstanding local brands that have excelled continuously over a period of three years.

The four main awards are:

- “Promising Brands” category for brands 3-8 years old

- “Established Brands” for brands which have been around for 6-30 years

- “Heritage Brands” award for brands above 30 years

- “CitiBusiness Regional Brands” category for brands that are at least 3 years old and with presence in at least five foreign markets.

The winners will be unveiled on 3 December 2008.

Source : Channel NewsAsia - 04 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

More companies go green to increase investor appeal - Singapore

More companies go green to increase investor appeal - Singapore
By Rachel Kelly,
SINGAPORE: Singapore companies are ahead of Australia, the United Kingdom, Hong Kong and Japan when it comes to being green.

More than half of the Singapore companies surveyed by recruitment firm Robert Half said they had environmental or green policies and activities in place.

Many also believed that having green policies would improve a company’s image among investors.

According to the survey, the demand for professionals in the financial industry with expertise in corporate environmental accounting is set to grow, as more companies in Singapore implement environmental policies and activities.

The survey polled about 4,900 people in 17 economies around the world. 22 per cent of the companies polled in Singapore were addressing environmental accounting in financial reporting, with 29 per cent of the respondents looking to do so.

Singapore’s ranking on environmental financial reporting was just behind Hong Kong’s 28 per cent.

Tim Hird, director of Robert Half International, said: “I think it undoubtedly presents an opportunity for accountants who have good solid understanding of corporate environmental accounting in the financial reporting area. We see that as being a really big growth area for the profession.”

Environmental or green accounting monitors the costs and savings of taking on green initiatives.

Robert Half said Singapore companies are ahead of the game when it comes to being green.

“Over 50 per cent of companies in Singapore actually said they had green policies in place already. That is pretty much ranked the highest, ahead of all the developed countries such as Australia, Japan and Hong Kong,” Hird said.

The survey showed that 75 per cent of the companies surveyed in Singapore had existing recycle programmes.
- CNA/so

 
Source : Channel NewsAsia - 04 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Residents raise concerns as Singapore HDB seals off air vents in old blocks

Residents raise concerns as Singapore HDB seals off air vents in old blocks

By Hoe Yeen Nie,

SINGAPORE: A fire safety measure by the Housing and Development Board (HDB) has raised a ruckus among some residents of a block of flats in Toa Payoh Lorong 5.

They claim that the sealing off of the ventilation shafts facing the common corridors has become a potential health hazard instead.

In Madam Maimon’s one-room flat, the electric fan is perpetually switched on since the HDB sealed off the air vents last month.

She said: “Before the vents were sealed, it was not hot. There’s still a breeze blowing in. And it was bright, so we did not have to switch on the lights in the flat.”

Such air vents are a familiar feature of some old housing blocks in Singapore.

The move has raised concern among volunteers at the nearby Thye Hua Kwan Seniors’ Activity Centre, which sent an appeal letter to the HDB, without success.

Social workers said these vents were a useful means of checking in on residents, especially those who keep their doors closed all the time. Foul smells could also be detected through these openings and there had been occasions in the past where dead bodies were discovered this way.

However, not all residents mind. Some make do by taking more showers.

Meanwhile, HDB said the move was prompted by a blast in a Bukit Merah flat on 3 August 2007, which killed an elderly man and injured four others.

Investigations showed that the fire and smoke had spread to other units through the corridor vents. Thus, HDB is keen to prevent a similar tragedy.

Lawrence Pak, Deputy Director, Building Technology Department, HDB, said: “We understand that some residents are used to an open vent and have to make certain adjustments to their daily routine.

“However, the safety of our residents is of paramount importance. HDB takes a non-compromising view towards the public and towards its residents.

“So in this case, because of the past incident, we sealed up the vents to ensure that smoke would not go into the neighbour’s unit if there is a fire within the particular unit itself.”

HDB also assured that the ventilation will not be affected, as the windows are large enough. It added that it has completed works on eight blocks since late 2007 and will start work on another 15 soon. - CNA/vm
 

Source : Channel NewsAsia - 03 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Rentals making gentle waves at Singapore Sentosa Cove

Rentals making gentle waves at Singapore Sentosa Cove

They could hold firm despite gloom elsewhere and offer decent yields
By ARTHUR SIM

(SINGAPORE) Close to 300 homes at Sentosa Cove, including 200 condominium units, have received Temporary Occupation Permit (TOP) and the exclusive enclave is starting to bustle.
DTZ Debenham Tie Leung, which is the property manager of the 200-unit The Berth by the Cove says that the development is now about 70 per cent tenanted.

It added that the remaining units of the fully-sold development are owner-occupied, some of which are weekend homes or holiday homes for foreigners.

Other developments that have received TOP include The Berthside, Ocean 8, The Villas @ Sentosa Cove, Coral Island and North Cove.

Expected to come onto the leasing market next is the 116-unit The Azure, which is also fully sold.

And the popularity of The Berth by the Cove with the leasing market bodes well for the remaining 2,200 homes that are still being constructed.

DTZ senior director (research) Chua Chor Hoon said that the supply of new homes in Sentosa Cove is still ‘limited’ compared to the rest of Singapore and the units have ‘the unique feature of close proximity to the sea’.

 
 
Saying that the limited supply of units in Sentosa Cove will limit any downward pressure on rentals, Ms Chua added: ‘Rental prospects are likely to be better.’

This upbeat outlook for Sentosa Cove is particularly pertinent at a time when new housing supply is expected to flood the rental market by next year.

In a recent report, DTZ noted that in general, rentals would come under pressure between 2009 and 2011, not just from new supply but from the sub-sale market as well as it is unlikely that speculators will want to hold units for low rental income.

DTZ said that based on its basket of non-landed properties in the prime district (excluding luxury properties) average monthly rents are currently still holding steady at $4.90 psf per month.

While DTZ did not reveal rentals at The Berth by the Cove, a check with SISV-Realink shows that the rental for a unit there contracted for $19,500 per month in May.

Colliers International also said it believes median rentals could be around $6 psf per month.

Colliers director (research and advisory) Tay Huey Ying added that based on the average launch price of The Berth by the Cove of about $860 psf in 2004/2005, investors who bought units at this price could now be enjoying a net rental yield of about 5.5 per cent.

Those that bought units from the secondary market later when the price rose to about $1,500 psf will be looking at a net rental yield of 3.5 per cent.

‘Nevertheless, these investors would still be enjoying a higher net rental return compared to those who invested in a freehold luxury apartment on the main island of Singapore in recent times since the latter are generating average net rental returns estimated to be in the region of 2.3 per cent,’ added Ms Tay.

In time over 1,700 condominiums will be completed. Savills Singapore director (marketing and business development) Ku Swee Yong believes that buyers for most of these units will be investors, suggesting that a majority will be put up for lease.

Still, he said that there is a niche market for this type of waterfront home. ‘We had an expat client who was looking to rent and after showing him a few options, he chose The Berth because he already has a yacht,’ reveals Mr Ku.

Interestingly, Mr Ku says the advent of the integrated resort on Sentosa may not necessarily guarantee a pool of tenants. ‘Not everyone will want to live so close to work,’ he added.

What he does believe is crucial to the success of Sentosa Cove as an exclusive enclave is the provision of high end amenities. He added: ‘Once these are completed, we believe Sentosa Cove rents could demand a premium over Orchard Road.’

 
Source : Business Times - 03 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore Business parks and high-tech sites gaining popularity

Singapore Business parks and high-tech sites gaining popularity 

By Chua Hian Hou 
 
BUSINESS parks and other high-tech industrial sites in Singapore have become increasingly popular among eligible tenants.
According to a new report released yesterday by CB Richard Ellis (CBRE), the overall occupancy rate at business parks probably hit a new high of 90 per cent last month, up from 88 per cent in March.

To rent space at sites like Changi Business Park, prospective tenants must meet certain criteria. These include carrying out research and development work.

Rental rates at these high-tech spaces are heading north. The rates may be cheaper than ultra-high-tech business parks and prime office space, but they were expected to have risen 6.8 per cent last month to $3.15 per sq ft per month from the first quarter.

The popularity of these sites, the report said, was due to the ‘limited availability and continued rental increases’ of office space in the Republic, although the dizzying upward spiral in rental rates had abated in recent months.

Nevertheless, prime office spaces can cost upwards of $16 per sq ft per month - far more expensive than in business parks.

Last year, prime office rents nearly doubled on the back of tight office space and a strong demand from occupiers, including global financial institutions expanding their operations in Singapore. This was on top of the 50 per cent-plus rise that prime office rents registered in 2006.

More business park and other high-tech sites are being built in Singapore. Recently, two business park sites in one-north were awarded.

Biopolis Phase III, which will have a gross floor area of 41,505 sq m when completed late next year, is being built by Crescendas Bionix.

Solaris, formerly known as Fusionopolis Phase 2B, will be built by Soilbuild Group Holdings. When completed by June next year, Solaris will have a gross floor area of 50,271 sq m.

Industrial landlord JTC Corp has also launched a new ‘concept and price’ tender at Changi Business Park.

This site will have a maximum gross floor area of 47,006 sq m, of which 40 per cent is designed for hotel and retail use. The tender will close next month.

——————————————————————————–
The sites are becoming more attractive because of the ‘limited availability and continued rental increases’ of office space, says a CBRE report

Source : Straits Times - 03 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Industrial production evaluate rebounds, snaps 6 months autumn

Industrial production evaluate rebounds, snaps 6 months autumn

Purchasing Managers’ Index for June stands above 50, manufacturing signalling

By Chua Hian Hou

A key indicator of manufacturing industry has finally shown signs of a rebirth after six months of decline.
The Purchasing Managers’ Index (PMI) rose 1.6 points to 50.6 last month. A reading above 50 indicates expansion in the sector, while one below 50 shows contraction.

The increase marks a welcome turnaround May ’s PMI 49 - the lowest since the dot.com bubble burst in 2001 and the third consecutive monthly reading is gone below 50.

The Singapore Institute of Purchasing and Materials Management (SIPMM) compiles notes asking factory purchasing managers about their expectations for the next month.

SIPMM CEO Janice Ong said last month l ‘increase was ‘better than expected ‘and could signal that manufacturing has bottomed out and was moving towards a moderate recovery during the second half of the year.

She attributed the jump to ‘higher production and stocks of finished products and higher inventory level ‘.

But she warned that “all imports and employment indices remain in contraction mode, indicating the position of local manufacturers cautious about the uncertainty and volatility external environment ‘.

The well-hoped-for manufacturing was also resumed at the risk of further slowdown in demand overseas, now in its fourth month of contraction, largely due to “the deteriorating level of confidence American consumers and businesses’, “said Ong.

She added that new orders were mainly from domestic rather than foreign customers, and if the alien does not look in the next three months, growth could well spraying.

CIMB-GK economist Song Seng Wun said yesterday that he hoped ‘lowest numbers are behind us ‘.

He pointed out that the first half of the year is traditionally a quiet period, if things should go look for manufacturers.

On the macroeconomic level, ‘is still waiting for China as it ’s done all right, and USA ‘PMI has also rebounded, so not everyone ’s closing shop ” Song said, referring to widespread Doom and darkness surrounding the global economy.

He added that while the industry is not likely to be a superstar artist this year, the new reading, we hope, means it can ‘at least remain in the dark ‘.

Source : Straits Times - 03 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Key player in Jade saga reaps huge profit from Singapore home sale

Key player in Jade saga reaps huge profit from Singapore home sale 

Anthony Soh plans to use proceeds to pay off his mortgage and step up legal fight to clear his name

By Lee Su Shyan, Assistant Money Editor 
Bought for $7.95m last year

Sold for $11.8m this year
 
THE businessman at the centre of the bungled Jade Technologies buyout is cashed up for his legal battles in Singapore and Australia after pocketing a huge profit from the sale of his lavish home.
Dr Anthony Soh had to take a big cut from his asking price of $13.88 million for the Windsor Park Road bungalow, but the dramatic rise in property prices over the past year still meant he could walk away well ahead.

He bought the 21,800 sq ft house in January last year for $7.95 million and spent $400,000 on renovations but sold it for $11.8 million - a profit of $3.85 million.

Dr Soh told The Straits Times in May that he wanted to sell the house to pay off his mortgage with OCBC Bank, and raise cash for legal fees he expected to incur in his fight to clear his name following the Jade buyout.

He has instigated legal actions in Australia against failed Melbourne broker Opes Prime and investment bank Merrill Lynch over the seizure of millions of Jade shares.

The profitable sale of his house will allow him to step up his legal fight.

‘I now have extra funds to hire two Queen’s Counsel to fight Merrill and others who took my shares,’ said Dr Soh last night.

He pledged the Jade shares to Opes to secure a loan. When the broker went belly up in March, however, Merrill, an Opes creditor, seized the stock.

This left Dr Soh with insufficient funds, forcing him to abort the Jade buyout. He contends that Merrill had no right to sell what he considers to be still his shares. This contention is at the heart of the legal action he has started in Australia against the investment bank and Opes.

The debacle had also resulted in a number of inquiries being launched into Dr Soh’s role in the events that left many investors in the red after their Jade shares plunged in value.

Funds from the house sale will also likely be used to fund legal costs on this front.

The buyer was businessman Jonathan Lim Keng Hock, who moved fast after reading about the property in The Straits Times on May 28.

Sources close to Mr Lim, 47, said he promptly made an appointment that day to view the lavish bungalow, which boasts a swimming pool and a badminton court.

Mr Lim, who had been looking for a place for months, signed the option agreement the following day.

Property agents said the $11.8 million price was a fair one, given the subdued state of the market and considering that the house, while a good class bungalow, is not in the prime Bukit Timah district.

Dr Soh told The Straits Times last night: ‘I am pleased that the buyer of the house is happy with the deal. He likes the house and got it at his price.’

Mr Lim is the main investor and chairman of electronics firm SNF Corporation. His stake of 26.99 per cent is worth about $3.68 million

He is also the founder and managing director of Romar Positioning Equipment International, a private firm that makes automation equipment for handling and welding in the energy and transportation industries.

The firm has more than 180 staff, a turnover exceeding $90 million and estimated profits of about $11 million. It was acquired by a European multinational corporation earlier this year.

 
Source : Straits Times - 03 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

New long-term passes for 200,000 foreigners

New long-term passes for 200,000 foreigners 
 
FOREIGNERS studying, working or visiting here on a long-term basis will be issued new identity-card-like passes in the coming months in a government move to enhance national security.
It will not affect low- or mid-level skilled foreigners on work permits or S-passes. These workers are already issued cards with security features.

The new long-term pass will replace the stamp endorsement on the travel documents of long-term visitors and the paper-laminated cards issued to foreigners working and living here.

More than 200,000 foreigners will be affected by the change, which was announced yesterday in a joint statement by the Immigration and Checkpoints Authority (ICA) and the Ministry of Manpower (MOM).

Earlier, in April, the two agencies had told The Straits Times that they were looking into giving these foreigners new identification cards as a safe and secure means to identify individuals and ease travel.

The new card will have better security features than the existing paper-laminated cards.

It will have biometric features similar to those found in the Singapore identity card, including a photograph and fingerprint of card holders aged 15 and older.

The paper-laminated card has neither. It essentially contains such personal particulars as the name, date of birth and foreign identification number of the pass holder.

With the new card, officials from the ICA and MOM can verify the card holder’s identity through face and fingerprint matching.

It will also deter forgery and fraudulent use of the card, said the two agencies.

Foreigners who have to apply for the new card include those on long-term visit passes and students, as well as professionals on employment passes and their families.

It will be introduced in phases. The first to get them will be new long-term visit pass and student pass holders. They will be issued the cards in the coming months.

Those holding the paper-laminated passes will switch to the new card in phases or when they renew their passes.

Professionals on employment passes and their family members living here will get the cards from next April.

Entrepreneurs starting a business here, university students on vacation work and trainees on attachment will also get them from next April.

More details on the card, such as its design and security features, will be given later, said the statement.

Source : Straits Times - 03 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

High returns, strong S$ spur investment in US

High returns, strong S$ spur investment in US

Singapore’s direct investment in US hits new highs
By CHUANG PECK MING

(SINGAPORE) The United States is back prominently on the radar screens of Singapore companies looking to acquire or set up businesses overseas.
Direct investments from Singapore surged suddenly from some US$20 million in 2006 to US$6.27 billion last year, according to the latest figures released this week by the US Department of Commerce.

And these exclude the US$5 billion bailout Temasek pumped into Merrill Lynch, or the US$6.88 billion that the Government of Singapore Investment Corporation sank into a distressed Citigroup. Those count as portfolio investments.

The big jump in direct investments from Singapore to the US in 2007 came a year after returns on them bounced back, hitting a five-year high of US$174 million. It will bring Singapore’s cumulative direct investments in the US to some US$8.68 billion.

The increase could also result from the rise in the Singapore currency against the US dollar, which makes it cheaper for Singapore companies to invest in the US. Between end-2006 and end-2007, the Singapore dollar rose 6.2 per cent against the greenback, appreciating from S$1.5415:US$1 to S$1.4463:US$1.

The surge in direct investments in the US last year did not come just from Singapore. ‘Outlays by investors from the Asia and Pacific region rose substantially in 2007, as outlays by investors from Australia, Singapore and (South) Korea increased significantly,’ the Commerce Department says in a report.

Led by Australia - which saw its investments rise nearly three times from the year before to US$15.22 billion - the region’s direct investments in the US more than doubled from US$15.76 billion in 2006 to US$36.93 billion last year.

European investments went up 37 per cent to US$146.5 billion, with the increase more than accounted for by the British.

‘Outlays by investors from Australia in the real estate and rental and leasing industry more than tripled,’ the Commerce Department says.

The investments from Singapore - the third largest from the Asia-Pacific, after Australia and Japan, went into the manufacturing, wholesale trade and finance and insurance sectors, excluding banks.

For the region as a whole, the biggest chunk of the investments - US$15.48 billion - were sunk in manufacturing, followed by real estate and rental and leasing (US$11.65 billion).

Globally, US$276.8 billion in foreign direct investments flowed into the US last year, up 67 per cent from 2006. They were the second largest on record and the highest since 2000, when new investments peaked at US$335.6 billion. In 2006, investments jumped 81 per cent.

‘The increases in both years (2006 and 2007) were significantly larger than the overall increases in US merger and acquisition activity and broke a pattern of more moderate annual growth from 2002 to 2005,’ the Commerce Department says.

‘The strong growth in spending in 2006 and 2007 coincided with declines in the value of the dollar against many major currencies.’

 
Source : Business Times - 02 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

A-Reit targets $5b portfolio size by 2010

A-Reit targets $5b portfolio size by 2010

Unitholders approve issuing new units, convertibles to add to financing options
By EMILYN YAP
ASCENDAS Real Estate Investment Trust (A-Reit) is looking to invest some $500 million in industrial properties and business space each year to reach its target portfolio size of $5 billion by the end of 2010.
 
Mr Tan: ‘A-Reit’s target to invest some $500 million in industrial and business space yearly is achievable.’ 
A-Reit will expand its portfolio through development projects and yield-accretive acquisitions.

The annual investment target is achievable, said Tan Ser Ping, CEO of A-Reit manager Ascendas Funds Management (S) Ltd. A-Reit’s latest investment has been the $246.8 million purchase of 31 International Business Park, Creative Technology’s headquarters building in Jurong East.

A-Reit unitholders yesterday approved a general mandate to issue new units or convertible securities in the financial year ending March 31, 2009. ‘This mandate would provide A-Reit with the necessary financing flexibility to respond to market opportunities,’ said Mr Tan.

Nevertheless, ‘the manager does not expect any immediate need to utilise the mandate to either issue new equity or debt securities such as convertible bonds’, he said.

To diversify funding sources, A-Reit is also putting in place a medium-term note issuance programme, Mr Tan told BT. This should be ready by the end of the third quarter or early fourth quarter.

With a gearing level of around 38 per cent in March, A-Reit also has debt capacity for near-term investments, Mr Tan said. ‘Access to capital is more difficult now, but … the better Reits, including A-Reit, have still got strong support from banks. Our existing banking lines are intact.’

Mr Tan believes that rental growth for business and science park properties and hi-tech industrial properties will remain healthy in A-Reit’s current financial year - rents for business and science park properties, for instance, are likely to grow by around 15 per cent.

However, he points out that uncertainty in the global economic environment will continue to cast a shadow over local conditions.

A-Reit units fell four cents yesterday to close at $2.21. CLSA issued a ‘buy’ call on the counter last week.

 
Source : Business Times - 01 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

3 Asian stock markets plan billions to fight volatility: report

3 Asian stock markets plan billions to fight volatility: report

Taiwan, Vietnam and Pakistan set aside stabilisation funds to allay market fears
(TAIPEI) Taiwan, Vietnam and Pakistan are poised to inject billions of dollars into their own stock markets soon, reported the Financial Times (FT) on Sunday.
 
Tough times: A scene at a Taipei brokerage last Friday, when the market sank to a five-month low 
All have set aside market stabilisation funds to allay investors’ fears over the volatility of the market, and are coming under increasing pressure to utilise them.

This comes even as there has been a 13 per cent fall this year in the MSCI Asia Pacific Index, which looks as though it would end June with its worst first-half performance since 1992, when it sank by 23 per cent as the Japanese economic bubble deflated.

The Cabinet in Taipei, where the local market dropped to a five-month low last Friday, had called on government pension and insurance funds to buy more domestic shares and to hold their investments for a longer period.

Economic and financial ministers and central bank officials met over the weekend to discuss how to boost investor confidence, reported FT. They stopped short, for now, of ordering the use of a NT$500 billion (S$22.4 billion) National Stabilisation Fund designed to support markets in times of volatility caused by non-economic events. However, the board of the fund, which was last used during political turmoil after the 2004 presidential election, will meet again this Friday.

 
Karachi had one of the hottest markets in the world in 2007, but its loss of nearly one-third in value since April has created ’systemic risk’.
 
 
 
 
 
 
The Karachi Stock Exchange (KSE) in Pakistan is coming under increasing pressure to use a 30 billion rupee (S$604 million) stabilisation fund set up last week for use in ‘volatile circumstances’.

Karachi had one of the hottest stock markets in the world in 2007, but its loss of nearly one-third in value since April has created ’systemic risk’, the KSE said.

Meanwhile in Vietnam, state media reported that the stock exchange and securities regulator was setting up a stabilisation fund to support a market that has lost nearly two-thirds of its value this year as inflation surged.

Official intervention to support share prices has a long history in Asia, reported FT.

One of the most successful examples was in 1998, when the Hong Kong government bought shares in the aftermath of the Asian financial crisis to support the value of the assets backing the territory’s currency, which is pegged to the dollar.

Japan started to intervene in the stock market in 1991 when prices halved after the ‘bubble economy’ burst. Interventions continued for several years, but more than a decade later the Nikkei average is only worth a third of its value in 1989.

‘The success (of official support) depends on one thing only: how cheap the market is,’ said Khiem Do, head of multi-asset at Baring Asset Management in Hong Kong. ‘The price- earnings ratio has ideally to be below 10 times, or no higher than the mid-teens, and then you have some chance of it working.’

Taiwan is currently trading at about 11 times forecast profits, Pakistan at 14 and Vietnam at about 10, he said, reported FT.

Source : Business Times - 01 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Asian govts may buy shares to aid tumbling markets

Asian govts may buy shares to aid tumbling markets 

Vietnam, Taiwan and Pakistan face calls to intervene to boost investor confidence
NOT SO GOOD: Japan started to intervene in the stock market in 1991 when the ‘bubble economy’ burst. Interventions continued for several years, but more than a decade later, the Nikkei average is worth only a third of its value in 1989. — PHOTO: REUTERS
 
SEVERAL Asian governments are looking at spending billions of dollars on shares to support plunging stock markets, in a move likely to be welcomed by global investors who fear emerging markets may be about to suffer further dramatic falls, the Financial Times (FT) reported.
The move follows a 13 per cent fall this year in the MSCI Asia Pacific Index, which looks as though it will end the month with its worst first-half performance since 1992, when it sank by 23 per cent as the Japanese economic bubble deflated, the FT said yesterday.

Government officials in Taipei, where the local market dropped to a five-month low last Friday, said the Cabinet had called on government pension and insurance funds to buy more domestic shares and to hold their investments for a longer period, said the paper.

Taiwan’s economic and financial ministers and central bank officials met over the weekend to discuss how to boost investor confidence.

They stopped short, for now, of ordering the use of a NT$500 billion (S$22.5 billion) National Stabilisation Fund designed to support markets in times of volatility caused by non-economic events, said the paper. However, the board of the fund, which was last used during political turmoil after the 2004 presidential election, will meet again on Friday.

In Vietnam, state media reported that the stock exchange and securities regulator was setting up a stabilisation fund to support a market that has lost nearly two-thirds of its value this year as inflation surged.

And in Pakistan, the Karachi Stock Exchange (KSE) is coming under increasing pressure to use a 30 billion rupee (S$604.2 million) stabilisation fund set up last week for use in ‘volatile circumstances’, said the FT.

Last year, Karachi had one of the hottest stock markets in the world, but its loss of nearly one-third in value since April has created ’systemic risk’, the KSE said.

Official intervention to support share prices has a long history in Asia, said the FT. One of the most successful examples was in 1998, the paper added, when the Hong Kong government bought shares in the aftermath of the Asian financial crisis to support the value of the assets backing the territory’s currency, which is pegged to the United States dollar.

Japan started to intervene in the stock market in 1991 after prices halved when the ‘bubble economy’ burst. Interventions continued for several years, but more than a decade later, the Nikkei average is worth only a third of its value in 1989, said the FT.

In Singapore, however, the Government favours a ‘hands-off’ approach to stock market volatility and does not interfere to prop up the market.

Source : Straits Times - 01 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Yacht charter service at Singapore Keppel Bay

Yacht charter service at Singapore Keppel Bay 
 
KEPPEL Bay home owners will soon be able to get more out of their prime waterside location.
Keppel Land announced yesterday that it will be launching a luxury yacht charter service later this month - the first such service in Singapore.

The new Grand Banks 52 Europa model yacht, The Admiral, is owned and managed by the Marina at Keppel Bay, and will be available to residents at a ‘privileged rate’, Keppel said in a statement.

The service, said Keppel Land residential chief executive officer Augustine Tan, will help Keppel Bay deliver ‘on its promise to be a vibrant waterfront precinct where home owners can enjoy the best in urban and waterfront lifestyles’.

The Keppel Bay precinct, comprising office development Keppel Bay Tower, the Marina at Keppel Bay, and the residential sites Caribbean at Keppel Bay and upcoming Reflections at Keppel Bay, is developed by Keppel Corp and its property arm, Keppel Land.

Source : Straits Times - 01 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore Govt puts up Bugis plot for sale in quiet market

Singapore Govt puts up Bugis plot for sale in quiet market

Appeal of 2.7ha site, near new Bugis MRT station, expected to draw bids over $1b

By Joyce Teo, Property Correspondent 
 
THE vacant U-shaped plot in Bugis used by art circus troupe Cirque du Soleil three years ago was put up for sale yesterday with a price expected in excess of $1 billion.
The prime 2.7ha site in front of Parkview Square could house a 40-storey office building, about 500 hotel rooms, as well as shops and homes.

There will also be direct basement level connections to the new Bugis MRT station that is being built to accommodate the upcoming Downtown Line.

The plot is designated a white site, meaning it can be used for different functions, such as residential or commercial.

Property consultants believe the white site’s size, location and transport links will make it particularly appealing.

‘Some developers will find it attractive as it is very big, which allows for various development and architectural options,’ said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.

But the cautious mood in the property market is likely to affect demand and bids, the consultants said.

They expect the 99-year leasehold white site to fetch anything from $1 billion to $1.4 billion, or between $600 and $813 per sq ft (psf) of potential gross floor area.

A white site in nearby Beach Road was awarded to a City Developments-led consortium for $1.689 billion, or $1,068.6 psf of potential gross floor area, last September when the property market was buzzing.

‘The Beach Road site is pricier as it is closer to the financial hub, and thus more attractive,’ said a market watcher. ‘Besides, the market is so much quieter now, compared with last year.’

Mr Mak said the Bugis plot could have fetched a similar price if it was launched during last year’s property boom.

This is the first land parcel offered for sale in the Ophir-Rochor corridor, a new growth area that the Government hopes to turn into a commercial hub.

The Ophir-Rochor corridor, which is seen as a natural extension of the established convention, office, hotel hub at Marina Centre, is expected to become a busy mixed-use cluster, said the Urban Redevelopment Authority (URA) yesterday.

Flanked by Kampong Glam and Beach Road, the area will also complement the financial district at Raffles Place and Marina Bay, URA said.

This planning vision dictates that at least 40 per cent of the total gross floor area of the U-shaped plot must be set aside for office use, while hotel and hotel-related uses should occupy at least 15 per cent.

The rest of the total gross floor area of about 160,000 sq m or 1.72 million sq ft can be used for more offices, hotel space, or shops and homes.

The URA, which unveiled plans for the Ophir-Rochor area last year, marketed the area’s first available sale site at an annual global property event at Cannes in March this year.

CBRE Research executive director Li Hiaw Ho said an office development on the site should be built by 2013 and could offer city fringe office occupiers an option to upgrade or expand into a higher-grade building without moving into the Central Business District.

The tender closes on Dec 3.

 Buyers wanted

The prime 2.7ha site in front of Parkview Square can house a 40-storey office building, about 500 hotel rooms, as well as shops and homes.

It is the first land parcel offered for sale in the Ophir-Rochor corridor, a new growth area that the Government hopes to turn into a commercial hub.

The site can be used for different functions, such as residential or commercial.
Source : Straits Times - 01 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore MAS to strengthen regulation in wake of US sub-prime crisis

Singapore MAS to strengthen regulation in wake of US sub-prime crisis
 
By Nicholas Fang 
 
THE Monetary Authority of Singapore (MAS) will tighten supervisory rules to ensure that financial institutions are well-placed to weather events such as the ongoing sub- prime crisis in the United States.
Its deputy managing director for prudential supervision, Ms Teo Swee Lian, said the events triggered by the sub-prime crisis had exposed a number of weaknesses in Singapore.

She said at the opening of the Second Annual Risk Management Conference yesterday that the crisis had spurred the MAS to re-examine its role as the financial industry’s supervisor.

‘It is inevitable that there will have to be some adjustments to our rules to address weaknesses that have been identified, for example, in relation to stress-testing processes,’ she said.

‘MAS will do this in a proportionate manner to ensure that there are no unintended consequences.’

She said MAS rules are not meant to be a comprehensive textbook for the management of risk, and urged board members and senior management to be responsible in ensuring that an institution’s risk management framework is robust.

Ms Teo also said that the MAS will continue to engage financial institutions on their risk management practices and said the central bank would increase its level of supervision.

‘During this phase, where the industry as a whole is seeking to internalise the lessons learnt from the crisis, institutions can expect more in-depth supervisory challenges by MAS on the appropriateness of their risk-management frameworks, especially in areas relating to stress testing and contingency planning.’

Banks in Singapore backed the MAS’ approach.

Standard Chartered Singapore chief executive Lim Cheng Teck said: ‘We welcome stronger and tighter regulatory supervision as it is in the interest of consumers.

‘Banking remains a risk-based industry and it is important that we remain prudent in our management and pricing of risk.’

OCBC Bank group chief risk officer Gilbert Kohnke agreed: ‘An effective risk-management programme is a prerequisite for any financially sound institution.

‘The board of directors and senior management each play critical roles in managing the risk environment, and thereby create, protect and enhance shareholder value.’

Source : Straits Times - 01 July 2008

Singapore Property - Buy, Sell, Rent, Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com