Marina IR opens April 27

Marina IR opens April 27

It will open in phases, with opening ceremony planned for June 23

By Lim Wei Chean

What’s coming up this year

SINGAPORE’S second integrated resort, the Marina Bay Sands (MBS), will open on April 27.

Like its counterpart on Sentosa, MBS will open in phases, with the casino, some hotel rooms, restaurants, part of the shopping mall and convention centre opening first.

Unlike Resorts World Sentosa (RWS), however, MBS has detailed when its various attractions will open.

In a statement yesterday, the resort said its first major event, a meeting of lawyers worldwide for the Inter-Pacific Bar Association’s 20th annual conference, will be held on May 2 to 5, just days after it opens.

It added that a grand opening ceremony has been planned for June 23, when the Skypark and several other attractions will begin to accept visitors.

Other areas of the resort, such as its theatres and museums, will throw open their doors progressively till the end of the year.

However, MBS added a caveat to its statement: The timeline could change if there are construction delays, for example. Getting regulatory approval is another factor, it added.

Casino Regulatory Authority spokesman Vivian Heng said it received MBS’ casino licence application in November last year, and the clearing process is under way.

Yesterday’s announcement comes after three years of work, including several delays. MBS was originally slated to open last December, but construction woes - the resort said it suffered a shortage of sand and other materials - led to the opening date being pushed back twice.

At one stage, there were even questions about whether MBS’ parent company, Las Vegas Sands (LVS), could complete the US$5.5 billion (S$7.7 billion) project, given the battering it took during the global financial crisis.

At its low point, there were fears that the company could go belly-up because of its debts. Several analysts questioned then whether LVS was using the delays to paper over its financial woes.

But Mr Sheldon Adelson, chairman and chief executive officer of LVS, stressed several times that MBS was ‘probably the company’s most important project’.

Yesterday, Mr Adelson said: ‘Despite the challenging, and at times unprecedented economic conditions companies like ours recently faced, our dedication to completing this development never wavered, not even for a second.’

Analysts and industry experts contacted yesterday welcomed the announcement of an opening date, saying MBS would add a different dimension to Singapore.

They agreed that while the two integrated resorts (IRs) will help Singapore become more attractive to tourists, give a boost to the economy and create a wealth of jobs, MBS will add extra wattage to the cityscape by injecting a dose of glitz, glamour and culture.

Singapore hopes to attract 17 million visitors, who will spend $30 billion, to the country by 2015. The two IRs are also expected to add some $5.4 billion to the economy yearly, and create at least 20,000 jobs.

CIMB-GK regional economist Song Seng Wun said that while RWS will draw leisure travellers and families - an important segment of the tourism market, no doubt - the Marina Bay IR will pull in movers and shakers with fatter wallets and influence worldwide.

MBS will also add to Singapore’s nightlife and cultural scene too, with such world-class shows as The Lion King, said National Association of Travel Agents Singapore chief executive Robert Khoo.

But analysts were quick to point out that both sides have their own strengths, and will do a good job of appealing to their own market segments.

One group that had an opposite reaction was travel agents, who feel RWS, not Marina Bay, will be the game-changer for them, since their business covers mainly leisure travellers.

But convention organisers were rubbing their hands with glee.

Mr Edward Liu, president of the Singapore Association of Convention and Exhibition Organisers and Suppliers, said MBS’ opening is something that the local meetings, incentives, conventions and exhibitions (Mice) industry has been looking forward to with great anticipation.

Its location and the number of attractions under one roof mimic the Las Vegas business model, a proven winner, he said.

He has already booked two mega- events at the IR.

Shares of Genting Singapore, which owns RWS, ended 1.5 cents lower at 94 cents yesterday after the announcement.

LVS shares opened slightly higher in early trading on the New York Stock Exchange, despite a recent trend of pressure on Las Vegas casino operators due to fears of falling room rates and worries over MGM Mirage’s newly opened US$8.5 billion, 6,000-room CityCenter project.

Source : Business Times - 25 February 2010

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Three new schemes to boost skills in local industry

Three new schemes to boost skills in local industry

By ABIGAIL KOR

IN response to the nation’s call for greater productivity, three new courses under the Singapore Workforce Skills Qualifications (WSQ) system have been launched for the local manufacturing industry.

Joint project: Mr Lee and SMa president Renny Yeo at the launch of the WSQ programmes, which have been developed through a collaboration between the SMa, WDA, IE Singapore and CAD-IT consultants
Developed through a collaboration between the Singapore Manufacturers’ Federation (SMa), Singapore Workforce Development Agency (WDA), International Enterprise (IE) Singapore and CAD-IT consultants, the new courses allow manufacturing professionals, executives and technicians to enhance their cross-functional skills; companies to raise productivity; and the manufacturing sector as a whole to move up the value chain.

When launching the new programmes at the Hilton Hotel yesterday, Minister of State for Manpower, Trade and Industry Lee Yi Shyan said they would be in line with the Economic Strategies Committee’s recommendation of developing a T-shaped workforce by ‘providing horizontal skills for greater versatility, sharpening vertical competencies and developing top skills in our professionals’.

The first programme, called the WSQ Manufacturing Sales and Marketing Programme, will cater primarily to engineers, technicians and technical personnel who wish to acquire sales and marketing skills.

SMa and WDA have further enhanced the programme by teaming up with IE Singapore to offer overseas immersion to selected candidates under the International Market Immersion Programme (iMIP).

The iMIP aims to equip candidates with overseas market knowledge to help their companies grow internationally.

The WDA, together with CAD-IT, a leading developer of Product Lifecycle Management (PLM) solutions in the region, has also launched two WSQ Graduate Diploma courses in PLM and Engineering Simulation.

The WSQ Graduate Diploma in PLM aims to equip workers with the necessary skills and knowledge to implement PLM systems in their companies, while the WSQ Graduate Diploma in Engineering Simulation trains workers to perform simulation for virtual product prototyping and research and development.

Source : Business Times - 25 February 2010

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Horizon Towers lawsuits headed for trial

Horizon Towers lawsuits headed for trial

High Court dismisses striking out action by 2 former sales committee members

By MICHELLE QUAH

(SINGAPORE) The latest legal tussle involving Horizon Towers looks set to go into full swing, with the High Court having dismissed the action by the two defendants to strike out the lawsuits filed against them.

Horizon Towers: The minorities say they were made to defend their homes against an en bloc process actuated by a lack of good faith on the part of the sales committee, and had to spend much for their effort
This means the court will hear the claims brought by three sets of minority owners against the two former sales committee members - unless the defendants succeed in appealing against yesterday’s decision.

BT understands that the first defendant - former sales committee chairman, Arjun Samtani - will appeal the High Court decision, while the second defendant, Tan Kah Gee, is still deliberating if he should appeal.

The High Court yesterday also ordered both Mr Samtani and Mr Tan to jointly bear the costs of the striking-out application and the court hearing - amounting to a total of $6,000.

The minority owners are suing the two former sales committee members to reclaim close to $1 million in legal and administrative costs which they say they incurred during the lengthy fight to keep their homes.

The en bloc sale of Horizon Towers was a saga that dragged out for more than two years, and involved several High Court and Strata Titles Board hearings. The Court of Appeal eventually decided in April last year that the deal could not go through because the development’s sales committee had failed in its duty.

The Court of Appeal had ordered the bulk of costs to be borne by the development’s potential buyer, Hotel Properties Ltd (HPL), and its majority owners.

But three sets of minority owners, represented by Kannan Ramesh of Tan Kok Quan Partnership, are now seeking compensation for the sums not covered by the Court of Appeal judgment. The three sets of owners are seeking between $117,000 and $370,000 in costs - making for a total claim of more than $800,000.

The minorities say they were made to defend their homes against an en bloc process actuated by a lack of good faith on the part of the sales committee, and had to spend much for their effort.

They said Mr Samtani and Mr Tan were ‘key players in the process leading up to the commencement, facilitation, management and finalisation of the collective sale process’.

In his defence, Mr Samtani - represented by N Sreenivasan of Straits Law Practice — said he was not alone in driving the sale process. He said ‘each and every member of the SC (sales committee) played an equally important role’ and that he ‘did not have any special powers’ that could influence the committee’s decisions.

Mr Samtani also claimed that the committee ‘followed up on all expressions of offer’ for Horizon Towers and that it received no offer better than HPL’s at the relevant time. He said the committee was advised by its lawyers to proceed with the HPL offer.

Mr Tan, represented by Senior Counsel Tan Cheng Han and Ian Lim of TSMP Law Corporation, said he was ‘not a key player’ and cited various correspondence and minutes of sales committee meetings which he said showed that he did not play a major role in the various aspects of the collective sale.

Mr Tan also said that the sales committee did not seriously consider an alternative offer made at the time by a Vineyard Holdings, as it had ‘questioned the credibility of the expression of interest from Vineyard and their level of seriousness given that Vineyard was a Hong Kong company that was not well known and its lawyers were not from a Singaporean firm, but from a small Malaysian law firm’.

He claims he suggested waiting for a higher offer, but that the majority of the sales committee did not agree. He said the sales committee genuinely felt they would not get a better offer than the one by HPL, and that they had been advised by their lawyers to accept the offer.

Mr Tan had also sought to strike out the minorities’ suits against him and Mr Samtani, saying that the entire remedy sought by the minorities was already dealt with by the Court of Appeal last April, when it decided on how it would award costs to the various parties. But the High Court chose to dismiss this application yesterday.

The defendants have 14 days to submit their appeal.

Source : Business Times - 25 February 2010

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More adjustments to foreign worker levy

More adjustments to foreign worker levy

Rate goes up for skilled, unskilled alike, and tier system will be altered

By Kor Kian Beng

FROM July 1, the foreign worker levy will go up every six months for three years. But that is not the only change that will take place.

The Government is also tightening another part of the foreign worker levy scheme: How much employers are charged according to the proportion of foreigners on their payroll, and whether they are skilled or unskilled.

At present, those with a lower proportion of foreigners pay a lower levy, and those with a higher proportion pay considerably more.

This tiered system can be found in two sectors: Manufacturing and services.

In manufacturing, the levy is in three broad tiers: The lowest for employers with up to 40 per cent foreigners, a middle band of those with 40 per cent to 55 per cent, and a top band of those with 55 per cent to 65 per cent.

This current system will be changed in two ways, the Ministry of Manpower (MOM) said yesterday, one day after Finance Minister Tharman Shanmugaratnam announced the move to change the levies.

One, the Government will raise the levy for both skilled and unskilled workers. Two, it will change the tiers, so that the higher levy kicks in sooner.

For example, a manufacturing company now pays a $150 monthly levy for a skilled foreign worker and $240 for an unskilled worker when they form up to 40 per cent of its total workforce.

This basic tier will be tightened to 35 per cent on July 1, when the corresponding levies will be raised to $160 and $260.

However, there is no change in the maximum proportion of foreign workers that companies can hire in all sectors.

As for S Pass holders, employers will face a two-tier system from July 1 in place of the current single rate levy of $50 a month for employing these mid-level skilled foreigners earning at least $1,800 a month.

These changes, said MOM, are aimed at getting companies to reduce their demand for foreign labour, turn to better-skilled local and foreign workers and to invest in boosting productivity.

Economists say the higher levies could be a disincentive and indirectly nudge companies to hire more locals.

Barclays Capital economist Leong Wai Ho said: ‘The higher costs will prompt employers to think more carefully about the next man they hire, whether he should be a local or a foreigner.’

But he said the levy changes have to be complemented with skills upgrading and job redesign efforts, especially in sectors where Singaporeans lack the skills or which they shun. He cited the electronics, marine and construction sectors.

Labour economist Shandre Thangavelu said the gradual phasing in of the changes gives companies time to adjust.

That the changes are not uniform also recognises that different sectors will continue to need foreign labour as few locals want to work in them, he said.

The construction sector, where productivity levels are about half those in Australia and one-third those in Japan, is set to be most affected by the changes.

Its levy increases will exceed those in manufacturing and services, where the increase over three years totals $100 on average for each work permit holder.

Other changes in construction MOM announced include the phasing out of unskilled foreign workers, who make up less than 1 per cent of the 245,000 foreign workers in the industry.

From July next year, foreign workers will be classified as Basic Skilled and Higher Skilled if they have two and four years of experience respectively and relevant skills certification from the Building and Construction Authority.

In addition, the foreign worker quota allotted on a project basis will be cut gradually to reach 75 per cent by 2012. It will start with a 5 per cent cut this July. For S Pass holders, the levy rates will at least double from the current $50.

Foreign domestic worker levy rates remain unchanged.

MOM said yesterday it will step up monitoring and enforcement efforts against employers who try to recover the levy from their foreign workers.

Lucky Joint Construction managing director Yeow Kian Seng said that with the changes, he will have to find ways to make his 200 work permit holders and 50 S Pass holders work more efficiently. ‘I will need to think about how to train and increase their productivity to manage the increase in overheads,’ he said.

Source : Business Times - 24 February 2010

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Building muscle for the days to come

Building muscle for the days to come

Budget a generous one in terms of attaining long-term growth: economists

By MICHELLE QUAH

(SINGAPORE) Economists and accountants are unanimous in their verdict that this year’s Budget has been a generous one in terms of helping Singapore attain long-term growth, through a concentrated focus on boosting productivity.

In transit: With this year’s Budget, the focus has clearly shifted to securing future growth from weathering the economic storm
But, with fewer measures than expected - especially in the area of tax cuts - they’re also of the view that this is not a pre-election Budget, suggesting the polls will only take place in 2011.

The experts noted that, with this year’s Budget, the focus has clearly shifted to securing future growth from weathering the economic storm.

PricewaterhouseCoopers (PwC), in its Budget Review, said: ‘The general outlook, judging by the tenor of this year’s Budget speech, was that the storm had indeed passed, and that what was needed now was to take a compass bearing and get on with the original plan for the sustainable growth of the Singapore economy and its people.’

KPMG said, in its Budget Tax Special, that the goal of this year’s Budget is clear: ‘It seeks to create a powerful growth engine that will transform the Singapore economy into a more sophisticated and advanced one.’

Morgan Stanley Research’s Asia-Pacific team, in their research note on the Budget, said: ‘With the macro trough now behind us, the FY2010 Budget moves beyond the short term to focus on longer-term growth sustainability. Specifically, the Budget places emphasis in the three areas of productivity, competitiveness and growth inclusiveness.’

The government had on Monday unveiled $5.5 billion worth of measures to boost productivity here, as well has incentives to boost research and development and innovation among local enterprises and ways to cut acquisition costs for companies. And, for greater growth inclusiveness, the government introduced a progressive property tax system, as well as various tax reliefs.

PwC noted: ‘The clear approach he (the finance minister) took was from the bottom up. The thrust of the initiatives announced were aimed at the lower-paid, the consolidation and growth of small and medium enterprises, and a general upgrading of quality and productivity from the lowest levels up, through training and innovation.’

Morgan Stanley said: ‘In our view, the thrust on productivity and growth inclusiveness address the macro issues emanating from within. The 8.4 per cent average GDP growth seen in 2004-2007 had been predicated on the global liquidity supercycle and to a certain extent on factor input from strong foreign labour growth. Additionally, until late in the last upcycle, growth recovery had also been uneven in distributing income amongst the different income groups. Focusing on productivity is definitely key to future growth sustainability and income growth.’

‘On the other hand, the focus on competitiveness addresses the issue from without, ie. growth extraction could be more difficult to come by if (the) developed world, such as Europe, were to continue to see subdued growth. We think the growth strategy will remain one of export-orientation,’ it added.

Still, there was disappointment that highly anticipated measures were missing from the actual Budget - namely, a cut in the corporate and personal income tax rates here.

Accounting firm BDO also expressed disappointment in the government’s decision not to extend the Foreign Sourced Income Exemption introduced last year. ‘The objective of introducing the Exemption in the Budget 2009 was to facilitate remittances into Singapore during a period of recession. Singapore is just about to emerge from the recession and therefore it would have been good to see the exemption extended for another year,’ noted its head of tax, Rohan Solapurkar.

Citi economist Kit Wei Zheng says the absence of certain measures in this year’s Budget suggests that general elections in Singapore may be held next year instead of this year.

‘The FY09 deficit undershoots initial Budget assumptions significantly (actual: $2.9 billion or 1.1 per cent of GDP; budgeted: $8.7 billion or 3.4 per cent of GDP), while the FY2010 deficit is expected at $3.0 billion, the largest deficit since 2001. Assuming the $4.9 billion of fiscal reserves unlocked last year were fully spent, we estimate this government has accumulated fiscal savings of $6.9 billion that can, in theory, be utilised to finance a similarly-sized deficit in FY11. The government may thus be saving fiscal bullets for a pre-election Budget in 2011,’ he said.

Source : Business Times - 24 February 2010

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Productivity rises on the cusp of a smile

Productivity rises on the cusp of a smile

Important to remember that happier workers are also more efficient

By WONG WEI KONG

(SINGAPORE) THE key thrust of Budget 2010 is aimed squarely at raising productivity, with the government committing some $5.5 billion over the next five years to achieve the goal. Even so, there are still limits to legislating for productivity growth, notwithstanding heavy investments in training and education. This is because productivity involves a human factor, and there is an emotional quotient that needs to be taken into account.

Economists and social scientists, for some years now, have been exploring the interplay between human emotions and productivity. The central question: are happier people really more productive? If so, then there are lessons to learn for both companies and government policymakers.

Intuitively, many people will agree that happier people will be more productive at work. Many reasons can be cited - happy people work better with others, are more creative, have more energy and are more optimistic. Happy people fix problems instead of complaining and are more motivated. Happy people also get sick less often.

But while these are general observations, there has not been much in terms of direct empirical evidence to support the link between happiness and productivity.

In December last year, however, a paper ‘Happiness and Productivity’ was published by Andrew J Oswald, Eugenio Proto and Daniel Sgroi of the University of Warwick in conjunction with The Institute for the Study of Labor (IZA) in Bonn - an independent non-profit organisation supported by Deutsche Post Foundation. It found, based on direct research evidence, that happiness does lead to greater productivity.

The paper was based on two experiments. In the first experiment, involving about 270 subjects over several days, a randomised trial was designed. Some subjects had their happiness levels increased in a controlled environment (they were shown 10-minute comedy video clips) while those in a control group were not. They were then given paid piece-rate arithmetic tasks. According to the results, the treated subjects showed 12 per cent greater productivity in their tasks, without altering the quality of their work.

Statistically striking

A complementary second experiment with 180 subjects was then designed. In this, major real-world unhappiness shocks, such as bereavement and family illness, were studied. The findings matched those from the first experiment - a striking statistical link was found between well-being and productivity.

‘The contribution of this paper is to suggest that human happiness has powerful causal effects on labour productivity,’ the authors concluded. ‘A rise in happiness leads to greater productivity in a paid piece-rate task. This effect is marked; it appears in each session; it can be replicated even with small numbers of subjects; the effect is found equally in male and female subsamples.’

If lessons are to be drawn from such findings, then companies will have to put more focus on the factors that define a happy workforce if they want to sustain productivity growth. Singapore workers do not appear to score that highly in terms of motivation, initiative or happiness. Last year, a survey by local jobs portal JobsCentral of 5,460 working adults in Singapore showed that the average employee here is ‘neutral’ about his work with a happiness score of just 56.4 on the survey’s scale of 0 to 100. More can be done to increase the happiness of Singaporeans at work.

For companies then, just sending workers for training, or investing in productivity systems, will not be enough. If happiness in a workplace carries with it a return in productivity, then firms will have to also look more closely at their human resource, remuneration and promotion policies, as well as workplace practices, areas where many local firms are still lagging. For instance, Singapore workers are working far too many hours, with resulting negative consequences for work-life balance and hence, happiness. With working hours still way above 40 a week, Singaporeans put in more hours than workers in 12 other countries used for comparison in a recent International Labour Organization’s global wages report.

And happiness and productivity form a virtuous cycle. If done the right way, raising productivity not only produces economic gains, but can lead to greater happiness. One OECD report found that there is a strong correlation between productivity and a population’s subjective sense of well-being, or happiness. It noted that Denmark, which received the highest ‘happiness’ score, is not only a wealthy country but also highly productive. Productivity raises happiness levels as long as it ultimately leads to more jobs and greater worklife balance. Workers get more done in a regular workday due to higher productivity, leading to the kind of increased wealth that leads to more job creation. At the same time, working efficiently gives them more time for non-work pursuits to achieve a more balanced life.

Purely economic

That’s something worth noting for policymakers. Selling the productivity message will not be easy. The tendency is to stress the economic benefits and workers, in turn, will also view it purely in economic terms - the fact that they will be left behind, earn less or lose their jobs if they don’t play ball. But if it is also highlighted that productivity growth can improve the quality of working life and worklife balance (which it rightly should) and hence, increase happiness, then the response from the workforce is likely to be a more positive one.

The bottom line is that raising productivity need not always involve billion-dollar price tags. Listening to people, taking care of them, treating them fairly and keeping them happy is within the reach of all companies, even the smallest.

Source : Business Times - 24 February 2010

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S’pore invests on road to the future

S’pore invests on road to the future

Budget rewards productivity and innovation, extends a hand to SMEs, as S’pore sets out on journey to transform its economy

By ANNA TEO

(SINGAPORE) If the task last year was a dire need to save jobs, Budget 2010 is set squarely on the longer term, with sights on quality jobs for a restructured advanced economy.

Fresh out of recession, Singapore is putting its money where its mouth is and committing $5.5 billion over the next five years to the issue of the day - the big goal of achieving 2 to 3 per cent annual productivity growth over the next 10 years, the main plank of the Economic Strategies Committee’s (ESC) blueprint for the country.

Indeed, the key thrusts and tenor - and fiscal incentives - of Budget 2010 flesh out the ESC proposals to build the capabilities the economy needs for a ‘phase shift’ towards growth driven by skills and innovation, with particular focus on small and medium enterprises (SMEs).

So while the mainstay income tax cuts or rebates - and even green perks - are conspicuously absent, new initiatives in Budget 2010 include a Productivity and Innovation Credit, a tax allowance to defray acquisition costs, and a Workfare Training Scheme.

The productivity and innovation credit is a big tax perk - offering 250 per cent tax deduction - to spur business spending in a range of activities from staff training to automation and research and development.

‘We must continue to build a society where every Singaporean shares in the country’s growth. The key strategy for achieving this is to raise skills and productivity in every trade and at every level of the workforce.’

- Finance Minister Tharman Shanmugaratnam

The idea is to spur businesses to invest in upgrading operations and creating new value, and so ‘catalyse improvements in enterprises themselves’, said Finance Minister Tharman Shanmugaratnam.

A $2 billion National Productivity Fund will also be created to fund grants for industry initiatives, particularly in sectors with room for large gains in productivity, such as construction.

The government will kickstart the Fund with $1 billion this year, to make clear its ‘long-term support for productivity improvements, irrespective of the state of the economic cycle’, Mr Tharman said.

He also announced that Deputy Prime Minister Teo Chee Hean will chair the new National Productivity and Continuing Education Council that will galvanise the national effort and set out the new Fund’s priorities and programmes

‘Our challenge is to make innovation and productivity improvements second nature to both companies and employees, and in every sector,’ said Mr Tharman. It will be a humongous three-pronged effort, involving not just the upgrading of firms and industries but a full-out economic restructuring, and a major investment in raising the skills and creative potential of every worker ‘up and down the skills ladder’.

The government will rely on the market to move the economy towards higher-value activities and exit from less efficient ones, he said.

Hence the envisaged 3-5 per cent medium-term economic growth ‘does not mean every industry or business growing by 3 to 5 per cent’, he pointed out. ‘More competitive and innovative players must be allowed to grow much faster, by bidding for the talent, manpower, land and other resources they need.’

The principle is also behind Singapore’s approach to managing the size of its foreign workforce, which has fuelled its economic growth in recent years.

Foreign worker levies will be raised gradually over the next three years, starting with a hike of between $10 and $30 for most work permit holders on July 1. The S-pass levy, currently $50, will also become a two-tier - and much higher - rate.

The third plank in the national effort to raise productivity will see the government spending $2.5 billion over the next five years to build a ‘first-class’ continuing education and training system for adults.

‘We have to gear ourselves up to sustain growth over the next 5 to 10 years,’ Mr Tharman said, noting that the projected 4.5 to 6.5 per cent ‘cyclical bounce’ in the economy this year does not reflect a sustainable pace over the longer term.

With the economy having emerged better than expected from the 2009 global economic crisis, plus a resurgent property market in the latter half of the year, the FY 2009 Budget balance turned out far better than initially projected.

The overall deficit is now estimated at $2.9 per cent, or 1.1 per cent of gross domestic product (GDP). FY 2010 is also expected to see, after top-ups to endowment and trust funds, a $3 billion overall Budget deficit, which Mr Tharman described as ‘manageable’.

The business community was largely unsurprised by the Budget’s forward-looking if measured ‘ESC-focus’, even if some, such as PwC partner Paula Eastwood, thought it ‘unprecedented’ in terms of its focus on SMEs.

Still, several analysts wonder if the $5.5 billion investment in productivity will be sufficient to produce the targeted results.

‘The government has attempted to create a transformational Budget that is focused on improving workers’ skills set, productivity levels and helping businesses expand overseas, with a little something for households,’ said KPMG managing partner Danny Teoh.

‘We look forward to seeing if the details will be enough to create a tipping point in changing the economic landscape in a Singapore of the future.’

DBS Group Research economist Lim Su Sian believes that the Budget measures - for both SMEs and the man in the street - will yield dividends over time. Plus, she said, the Budget also tried to achieve more equitable growth with, for example, a new progressive property tax structure.

Source : Business Times - 23 February 2010

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$7b boost to transform economy

$7b boost to transform economy

The aim: building superior skills, quality jobs, higher incomes

By Zakir Hussain, Political Correspondent

THE Government yesterday unveiled a multi-billion-dollar plan to help companies and workers here work smarter, grow and become globally competitive.

If it is successful, Singapore could see a big leap in incomes and living standards, and become a major force in the explosive growth of Asia and other promising regions.

Delivering the annual Budget speech in Parliament yesterday, Finance Minister Tharman Shanmugaratnam said that although the rebound in the world economy had brightened the outlook considerably, Singapore must look beyond that.

‘Our priority during last year’s global crisis was to keep jobs. Our priority must now be to improve the quality of jobs,’ he said.

‘Raising skills and productivity is the only viable way we can achieve higher wages, and is the best way to help citizens with low incomes,’ he added.

The key to doing this, Mr Tharman said, is in boosting productivity and managing the economy’s dependence on foreign labour.

This is why the Government will devote $5.5 billion over the next five years to help businesses and workers raise productivity. A further $1.5 billion will go towards promoting research and development.

The national effort will be led by a new National Productivity and Continuing Education Council to be chaired by Deputy Prime Minister Teo Chee Hean and will comprise business and labour leaders.

A new National Productivity Fund will also offer grants to any company that wants to improve its efficiency.

But one-quarter of the fund’s initial $1 billion will go to the problematic construction sector, which relies heavily on foreign labour and whose productivity is languishing at around one-third of Japan’s.

To show it means business, the Government will also give companies an unprecedented 250 per cent tax deduction on any investments they make in innovation, ranging from research and development to automation and worker training.

‘Every employer must take the initiative,’ said Mr Tharman. ‘They have to re-design jobs to make their employees more productive, and keep asking how they can help their people reach further and accomplish more.’

He noted that the best companies were already doing this, and said: ‘We must spread this enabling culture across all businesses.’

To equip these companies with better-skilled workers, the Government is committing $2.5 billion over five years to building what Mr Tharman called ‘a first-rate Continuing Education and Training system’ for adult workers to hone their skills and pick up new ones.

The aim of all this is to raise productivity growth from around 1 per cent to 2 to 3 per cent within 10 years - a target set three weeks ago by the high-powered Economic Strategies Committee (ESC) of public and private sector leaders.

If Singapore achieves this, real incomes could rise by one-third, said Mr Tharman. This transformation of the economy will be important in the next five to 10 years.

That is because this is a crucial window for Singapore companies to expand abroad, while their skill-sets are in high demand. And if they are successful, better jobs can in turn be created back home.

‘This will put us onto a virtuous cycle: building superior skills, quality jobs and higher incomes,’ said Mr Tharman.

Elsewhere in the Budget, he introduced measures to benefit lower- and middle-income households.

These include a more progressive property tax structure that will see all HDB flat owners and the majority of private property dwellers paying lower taxes.

Various tax reliefs, including for those supporting their parents and grandparents, will also be increased. Wives who are breadwinners can also claim relief.

About a million citizens over 50 will also get top-ups of between $200 and $500 to their Medisave accounts.

In all, the Government is spending $1.4 billion in direct transfers to households, excluding Workfare, this year.

As a result of all this spending, the Government expects to incur an overall Budget deficit of $3 billion, but Mr Tharman said there are sufficient current reserves to fund this deficit.

Reacting to the Budget measures yesterday, OCBC Bank’s Selena Ling said: ‘The commitment in tax benefits, grants and training subsidies will be welcomed by companies and households.’

But MP Jessica Tan, chairman of the Government Parliamentary Committee for Finance and Trade and Industry, noted that the challenge is making sure companies understand the measures in order to tap on them.

HSBC economist Robert Prior-Wandesforde said the productivity initiatives will make a difference.

‘But one is left wondering whether the additional $1.1 billion a year over the next five years will be enough to generate the sort of productivity revolution that is required,’ he added.

Details of the various Budget measures will be announced in coming weeks.

Parliament will debate the Budget proposals when it sits from March 2 to 12.

Source : Straits Times - 23 February 2010

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Singapore is No 1 Asian investor on Wall Street

Singapore is No 1 Asian investor on Wall Street

Investors went on a buying spree; snapping up US$12.61b of US stocks last year

By CHUANG PECK MING

SINGAPORE overtook Japan as the biggest Asian investor on Wall Street in 2009. Investors here snapped up a net US$12.61 billion of US stocks in a year when the US equity market closed with its best annual gains since 2003.

The benchmark Standard & Poor’s 500 index jumped 23.5 per cent last year, while the Dow Jones Industrial Average rose 18.8 per cent and the Nasdaq surged 43.9 per cent from its close on Dec 31, 2008.

Egged on by stock prices bouncing back after two years of losses, Singapore investors went on a buying spree - especially in the July-September quarter when net acquisitions hit a US$5.21 billion high - that ended in purchases more than double those they made in 2008. The figures were compiled by the United States Treasury.

Singapore was traditionally the second-largest Asian investor in US stocks behind Japan. During some quarters, Singapore net investments exceeded those of the Japanese.

But last year was the first time Singapore’s annual investments surpassed those of the Japanese - thanks to a sharp cutback by the latter.

Singapore’s investments barely overtook those by the Japanese. Though weakened in recent years by a poor economy at home, Japanese investors could still fork out US$12.47 billion for US equities in 2009.

But that’s a far cry from what they invested in their heyday on Wall Street, when they chalked up annual net purchases of US$20 billion or more.

Their diminished presence last year shows. Asian net investments in US stocks - which had been led by the Japanese - plunged from US$65.27 billion in 2008 to US$41.04 billion.

While the spurt in net acquisitions by Singapore investors in 2009 contrasted with the pull-back by other Asians, it was very much in line with the tendency of global investors to buy more US stocks that year.

Global investments in US equities more than tripled from US$39.14 billion in 2008 to US$148.94 billion in 2009.

Not many at the start of 2009 would have expected Singapore investments on Wall Street to surge during the year.

Singapore investors were picking up bargains after stock prices crashed in 2008, but began to show signs of fatigue as they entered 2009. They slashed net purchases more than half to US$2.24 billion in the first three months.

But they perked up in the next quarter to mop up a net US$3.4 billion of US stocks. In the third quarter, their net purchases shot up to US$5.21 billion, making Singapore the third-biggest investor on Wall Street from July to September.

According to the latest US Treasury figures, Singapore investments in US equities tapered to US$1.76 billion in the final three months of 2009, as a nine-month rally led by gains in technology and material shares on Wall Street eased.

For Q4, the Dow rose just 7.5 per cent, the S&P increased 5.5 per cent and the Nasdaq was up 6.9 per cent.

Source : Business Times - 22 February 2010

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Sentosa Island visitorship surges after RWS casino & theme park open

Sentosa Island visitorship surges after RWS casino & theme park open

By Wang Eng Eng

SINGAPORE : Guest arrivals to Sentosa Island surged when the Resorts World Sentosa casino and theme park opened on Sunday.

Some 75,000 people visited the island, a 20 per cent increase from the first day of the Lunar New Year in 2009.

Another 67,000 people visited the island on Monday.

Over at Resorts World Sentosa, the casino alone attracted some 35,000 people over two days.

There were long queues, either for entry to the casino or the restaurants at Resorts World Sentosa.

The fewer number of Singaporeans getting into the casino got in easily by paying the S$100 levy.

But the huge number of foreigners led to many waiting in line for up to two hours.

One visitor said: “I have waited here for two hours, it is too long.”

Krist Boo, vice-president, Communications, Resorts World Sentosa, said: “…the queue is very overwhelming, we have a very good response to the casino opening…the foreigners’ queue can vary; as and when the casino can take more people, we will let them in. It can take from a few minutes to an hour plus.”

The situation was slightly better at the restaurants. Diners were able to get in after 30 to 40 minutes.

And since not all of the 13 restaurants were open, business was good for those that were.

One restaurant told MediaCorp it experienced a 100 per cent increase in business compared to last week.

The situation was a little different outside of Resorts World.

Although it was equally packed at Imbiah Point, cafes like Delifrance said their increase in business was less than expected.

Joanne Tee, assistant manager, Food Service, Delifrance, said: “For today…my business is about 20 per cent more. Actually I expected more, about 50 per cent more, because of the opening of the IR…I also expected more people to come during CNY (Chinese New Year).”

Although the crowds are thronging in, Sentosa Leisure Group said traffic was smooth.

It will continue to monitor the arrival and departure patterns of guests and respond to the situation accordingly. - CNA/ms

Source : Channel NewsAsia - 16 February 2010

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