Charts show Asian markets oversold

Charts show Asian markets oversold

STI falls 2% to hit its lowest since Oct 2006; Merrill says markets are oversold, will be 20% higher in a year
By R SIVANITHY

ALREADY left tottering on Thursday after a region-wide selloff, Asian markets had the rug yanked from under their feet yesterday following a blowout a day earlier on Wall Street where the major indices lost an average of 2 per cent.
The US sub-prime-related economic slowdown that is now spreading across the globe, rising joblessness and a worsening earnings outlook were said to have been responsible for the US market’s selloff, this despite oil prices showing signs of retreat.

‘The warning signs were there mid-week when Wall Street did not react to a large drop in oil,’ said a dealer here. ‘Instead, it struggled to hold on to minor gains so people should have known that trouble was brewing.’

Oil dropped US$8 a barrel on Tuesday to US$107, prompting a large run-up in regional stocks in the hope that Wall Street would react that day. Instead, it surrendered a large early rise to close weaker that day.

Since then, the US market has displayed persistent instability and a preference for focusing on bad news instead of the good. Higher labour productivity reported on Thursday, for instance, was brushed off in favour of a focus on the US Federal Reserve’s Beige Book report on the economy, which cited weak housing, difficult credit and slowing consumer spending.

 
 
Here, the Straits Times Index plunged to a 22-month low on Thursday, and a 51.84-point or 2 per cent loss yesterday took it to 2,574.21, the lowest since it ended at 2,559 on Oct 4, 2006. It fell four of five days, losing 6 per cent in the process.

Elsewhere in the region, Hong Kong’s Hang Seng Index lost 456 points or 2.2 per cent to close at an 18-month low of 19,933.28, while Japan’s Nikkei 225 lost 345 points or 2.8 per cent at a six-month low of 12,212.23.

Merrill Lynch in its Asia-Pacific Investment Strategy yesterday said its technical indicators show Asian markets are oversold and so predicts markets will be 20 per cent higher in 12 months.

‘The MSCI Asia-Pacific ex-Japan Index fell to two standard deviations below its 200-day moving average in mid-July and is 1.5 standard deviations below currently. On average since 1994 when Asian markets have become this oversold, they have risen 22 per cent over the next 12 months,’ said Merrill. ‘A falling oil price also benefits Asia as its economies are much more energy-intensive than the US.’

 
Source : Business Times - 06 Sept 2008

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Singapore Temasek’s on track with genco sales

Singapore Temasek’s on track with genco sales

By RONNIE LIM
THE first was sold to the Chinese, and the second has just gone to a Japanese/French group. Temasek Holdings’ divestment of the three biggest generating companies (gencos) here, aimed at injecting greater competition in the power market, is well on track.
Temasek announced yesterday that Senoko Power, Singapore’s largest power station with 3,300 megawatts, has been sold for about $4 billion to the Lion Power consortium that includes French power and water utility giant GDF Suez and comprises four Japanese companies, led by Marubeni Corp.

The ‘enterprise value’ of about $4 billion comprises a cash consideration of $3.65 billion plus $323 million of net debt of Senoko Power as at March 31, 2008, which Lion will assume, it added.

The five-member Lion Power consortium comprises Marubeni, GDF Suez (with reportedly a 30 per cent stake), Kansai Electric Power Company, Kyushu Electric and Japan Bank for International Cooperation.

The price which Senoko fetched is slightly lower than the $4.235 billion paid in March by China Huaneng Group for the 2,670 MW Tuas Power - the newest, but smallest of the three gencos. On a straight per megawatt basis, the latest Senoko sale works out to be about 30 per cent cheaper than Tuas’s.

Still, with two gencos sold in just 11 months Temasek is well within its target of mid-2009 to complete the entire divestment exercise. Only PowerSeraya, the second largest power station here with 3,100 MW capacity, remains.

 
 
Gwendel Tung, Temasek’s director of investment, said that ‘Lion Power’s proposal was the most attractive in terms of price and commercial terms among a field of highly reputable investors’. She added: ‘With the accelerated timeline and expeditious completion of this transaction, we are well-positioned to conclude our genco divestment plan on schedule.’

Chihiro Shikama, Marubeni Corp’s executive officer, said: ‘This sizeable investment is a significant vote of confidence in the Singapore economy and energy sector.’

Lion strongly supports Senoko Power’s environmental leadership and has committed significant additional investment to construct new, more-efficient gas-fired units, he added.

Senoko Power supplies about 30 per cent of total electricity needs here. For the year ended March 2008, the company reported revenue of $2.495 billion and Ebitda (earnings before interest, tax, depreciation and amortisation) of $245 million.

Source : Business Times - 06 Sept 2008

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Don’t write off Thailand, govt urges investors - Thailand

Don’t write off Thailand, govt urges investors - Thailand

But political analysts not hopeful of an early resolution to crisis

By GREG LOWE
IN BANGKOK

THAILAND’S political turmoil is devastating the economy, but foreign investors should exploit opportunities, not write the country off, says the government.

Spokesman Nattawut Saikuar said the standoff between the People’s Alliance for Democracy and the government, and the state of emergency declared on Tuesday have damaged the economy and tarnished the kingdom’s image globally.

Investor confidence will return with a political resolution that should not involve beleaguered Prime Minister Samak Sundaravej stepping down or dissolving parliament, he said.

‘The Thai political situation right now is not supportive of either investment or tourism. We have to admit this fact,’ the spokesman said. ‘You might want to delay an investment, but don’t forget about us. Don’t write us off. This country has great opportunities for investors.’

The country has been roiled in political turmoil for months. It took a dramatic turn for the worse last week when thousands of supporters of the opposition alliance stormed the gates of the Government House that houses Prime Minister Samak’s office. Protests have since erupted across the country, leaving the government paralysed.

While Mr Nattawut could not give concrete examples of opportunities available to foreign investors, he said that they could capitalise on local commodities whose value has been driven down by the crisis.

‘Choosing to invest now to get the advantage later might be a wise move,’ he said.

According to him, Thais first need to invest in democracy and respect the rule of law to win back confidence in the economy.

Analysts support the claim that opportunities exist. Foreign investors in the Thai market remain bearish, with year-to-date overall net sales exceeding 100 billion baht (S$4.17 billion) - more than double those in the same period last year and almost triple the 37 billion baht in the same period in 2006.

The property market has been oversold, providing bottom-fishing opportunities for risk-taking investors, according to KGI Securities (Thailand). A number of value property plays have bombed since a state of emergency was declared, and a swift resolution of the political situation would lead to a rebound in these plays, the firm said.

‘In terms of valuation, property counters have been sold off too much as most of them will deliver outstanding earnings this year,’ KGI Securities property analyst Thaninee Satirareungchai told The Business Times. ‘Market sentiment is not good because of the political situation, but for investment, right now is a good time to buy.’ Asian Property Development, Quality Houses and Preuksa Real Estate are the soundest investments and are predicted to outperform, she said.

But political analysts are not optimistic that the political deadlock will resolve itself anytime soon. Yesterday, Mr Samak again refused to step down, but offered an unconventional compromise - a referendum for the public to choose between the opposition alliance and the government.

The alliance, however, has ridiculed the plan, saying Mr Samak will manipulate the vote, and has vowed to continue the protests until he resigns.

Source : Business Times - 05 Sept 2008

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CCT inks top-rate leases at two Singapore prime office buildings

CCT inks top-rate leases at two Singapore prime office buildings

By Joyce Teo

Capital Tower (left) and one of the four skyrise gardens at One George Street. Both buildings, owned by Capitacommercial Trust, are now at near 100 per cent occupancy. — PHOTOS: CAPITALAND, ST FILE PHOTO

THE cautious mood in the property market has not prevented Capitacommercial Trust (CCT) from striking attractive lease deals at the prime Capital Tower and One George Street buildings.
JPMorgan Chase & Co and BHP Billiton both renewed their leases at Capital Tower, while South Korean bank Shinhan Bank is taking up space at One George Street.

The total space signed up - either on renewed leases or new deals - is about 77,900 sq ft. Both buildings are now at near 100 per cent occupancy.

A CCT spokesman said: ‘Given the Grade A quality of Capital Tower and One George Street, the newly committed rents are in line with rates achieved at comparable buildings of between $16 and $20 per square foot per month.’

This is despite the current weak macroeconomic sentiments.

Ms Lynette Leong, chief executive of CCT’s manager, said: ‘Singapore, a global city with affordability of lifestyle for expatriates, attracts firms looking to expand in this part of the world.’

Rents at Capital Tower in Robinson Road, near Tanjong Pagar MRT Station, are hovering at around $15 to $16 psf, according to Mr Donald Han, managing director of Cushman & Wakefield.

One George Street, a relatively new building near Raffles Place, commands rent of $18 to $19 psf, he said.

With demand and occupancy still fairly strong for prime office buildings, landlords are not panicking despite the economic slowdown, said Mr Han.

But landlords with new space to let may take a little longer to find tenants as a lot of financial institutions have already gone through their expansion process, he added.

Meanwhile, CCT also announced that it has offered to lease a 1,313 sq ft ninth-floor unit in Capital Tower to CapitaLand for three years for a total rent of $449,126.

CapitaLand has an indirect interest of 31 per cent in CCT.

Source : Straits Times - 05 Sept 2008

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Singapore Orchard Central duplexes split up

Singapore Orchard Central duplexes split up

Level 1 duplexes turned into single-storey units due to slow economy and lack of demand

By Michelle Tay

GLOOMIER times appear to have taken a toll on the upcoming Orchard Central mall near Somerset MRT Station.
The mall will no longer house two-storey shops, or duplexes, on its ground floor as had previously been announced, the project’s developer Far East Organization has told The Straits Times.

These duplexes were intended to have been glitzy, eye-grabbing outlets likely to have been leased by top-notch brands.

Instead, the three duplexes planned for level 1 have been split into single-storey units and leased to retailers wanting smaller premises.

Industry watchers said demand for the higher-rent duplex stores is likely to have waned due to the economic slowdown.

Also, the area, considered by some to be the more downmarket end of Orchard Road, may lack the cache needed to pull in the large brands that are more likely to take those spaces, they said.

Orchard Central is one of three new shopping centres to go up in Orchard Road in more than a decade.

The 14-storey mall is slated to open early next year, and will boast underground shops, restaurants with outdoor balcony seating, as well as a special ‘jewel box’ - a glass-fronted shop to be suspended in mid-air outside the building.

When contacted, Far East said: ‘We had more demand for single-floor units, and we are happy to report that the key level 1 shops facing Orchard Road have been snapped up. We also decided to change the original plans as this would mean more shopping diversity and choices for our customers.’

It added that the mall has one more duplex unit, on levels 3 and 4, which has attracted interest but has yet to be leased out.

Ms Lau Chuen Wei, executive director of Singapore Retailers Association (SRA), said it is ‘not surprising if there is a lack of demand’ for the double-storey units.

‘A duplex would definitely require a higher rental commitment, which is, by and large, something that retailers find quite hard to commit to at this time.’

Property consultants The Straits Times spoke to said duplex stores have high visibility so landlords would ‘normally want a very high-end brand’ to occupy them.

‘If I were the landlord, I’d have to give it to someone who is really worthy of it,’ said one retail property specialist, who declined to be named.

‘If not, splitting a unit into two will get higher rental,’ he added.

Some observers also say the fact that several malls are springing up at about the same time has created more intense competition in the battle for the brands.

Previously, Far East had told The Straits Times that its ‘jewel box’ store, to be designed by renowned Egyptian-born industrial designer Karim Rashid, will ‘as its name suggests…be occupied by an upmarket jeweller’.

But Cupid Jewels, a home-grown firm specialising in lower-priced bling, has now confirmed its tenancy there.

It has four showrooms in decidedly less swanky locales - Clifford Centre, Harbourfront Centre, Novena Square and OG Orchard Point - but said it will rebrand itself as a more upmarket jeweller at Central.

In contrast, Ion Orchard, the other mall being built at Orchard Turn, has snagged glitzy labels like Cartier and Louis Vuitton to front its duplexes, as well as haute jewellers Harry Winston, Chaumet and Boucheron to occupy its first floor.

But industry experts also defended Orchard Central’s positioning, saying the area near the Somerset MRT Station is no less attractive than the strip nearer to the Orchard MRT Station.

Mr Danny Yeo, deputy managing director of Knight Frank, said: ‘It’s not that this part of Orchard Road does not have a draw, it’s just not a main draw for the high-end segment.’

‘The malls near Somerset are all internally connected to each other. And there are enough young people who will find that this side will provide a good alternative to the strip between Ion and Ngee Ann City. Now Orchard Road has two distinct and strongly positioned areas.’

And Ms Daisy Loo, head of leasing and consulting at Sandalwood Retail, said: ‘Mass market brands can have duplexes too. It doesn’t mean only luxury brands can afford a duplex, and it doesn’t mean a duplex is the only thing that will earn you top dollar.’

She added: ‘It’s part and parcel of business to rethink strategies and review plans when market conditions change. Decisions are always based on changes in demand and tenant requirements.’

Source : Straits Times - 05 Sept 2008

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Singapore COEs, ERP and the questions in between

Singapore COEs, ERP and the questions in between

Solving the traffic congestion problem will become trickier

By Han Fook Kwang, Editor

IT IS not often that Singaporeans hear of differences in opinion within the highest ranks of Government, but there was a hint last week.
Senior Minister Goh Chok Tong was at a dialogue with Marine Parade residents when he revealed an interesting divide over transport policy.

He said Minister Mentor Lee Kuan Yew was in favour of making car ownership very expensive so that fewer people would own cars hence leading to less congestion on the roads.

Prime Minister Lee Hsien Loong, on the other hand, wanted more people to be able to own cars and to control congestion by applying more stringent usage measures like Electronic Road Pricing (ERP).

‘The PM believes it’s fairer if you can spread car ownership. Philosophically, the PM is right. In a practical sense, the MM is right,’ he said.

‘But then the problem is, the middle class can’t own cars, only the rich can. So the PM is right philosophically, and I think it’s the fairer approach. But then, more road congestion, and so ERP.’

It has always been a tricky balance, getting the right mix of ownership and usage measures to work, to ensure not just free-flowing traffic but also meet the growing aspiration of people to have their own set of wheels.

Which is the more effective method for Singapore? Which the fairer? Is it possible to be both effective and fair?

This is not just a matter of transport policy. It is also highly political in nature, especially when questions of fairness are raised.

Or to put it more bluntly, as SM Goh did, should only the rich be able to own cars?

You cannot get more political than that.

When the certificates of entitlement (COEs) were first introduced in 1990, it seemed that the ownership school had prevailed. If ever there was an ultimate weapon to control car numbers with absolute precision, this was it.

What could be more final a solution?

Except, of course, for the tricky business of deciding how many COEs are to be released.

For as long as I can remember, a growth rate of 3 per cent per year for the car population has been prescribed since COEs were introduced.

That growth rate has resulted in the number of cars going up from about 248,000 in 1990 to nearly 540,000 today.

That means one in seven persons today owning cars compared to one in eleven 18 years ago.

In other words, the COE system has not impeded more widespread ownership.

Those COE-rich years were accompanied by - from today’s perspective - a fairly relaxed set of usage measures. ERP charges were fairly low. Parking charges paled in comparison to those in cities like Tokyo, New York and London.

Those good old days clearly could not last. By the early 2000s, it was evident that the roads were becoming congested. Traffic volumes in parts of the city reached saturation levels with increasing frequency.

It took a new Transport Minister to declare a more aggressive approach to the problem. Mr Raymond Lim announced a new target for COE growth, halving it to 1 and a half per cent a year, from next year, and a widening of the network of ERP gantries, with higher charges all round.

Taken together, these measures signalled a major shifting of the gears on both the ownership and usage fronts.

What does this new regime mean for Singaporean motorists?

Apart from the obvious effect of making the cost of owning and using cars more expensive, there are another two important implications, the significance of which might not have sunk in yet.

First, any tightening of the COE supply favours existing car owners over future ones. In fact, everything else being equal, existing owners enjoy a windfall if a reduction in the supply of COEs results in prices going up, and a corresponding increase in the value of all cars, new and existing.

That is good news for those owning cars today.

But not so for prospective car owners, especially those buying their first cars, including younger generations of Singaporeans.

In fact, they face a double whammy. Not only will COE supply shrink but Singapore’s population is expected to increase as the Government woos skilled immigrants to settle here, a significant proportion of whom might be expected to be of the car-coveting lot.

Younger Singaporeans will have to compete with new immigrants for the reduced car quota.

It is tough on them, but it is politically a more palatable solution than relying more heavily on usage measures like the ERP which would affect a far larger group of motorists.

In fact, by reducing the total number of COEs, the authorities have given themselves more breathing space to go easier on usage measures.

The second implication has to do with public transport.

The Government recognises that the key to getting people to give up owning and using their cars is to improve public transport, and it has announced a $50 billion plan to expand the MRT network over the next 12 years.

That is a good start, but I wonder if it is enough.

When thousands of would-be motorists who have been priced out of owning cars because of the reduced COE allocation join the MRT-and-bus commuting public every year, the standards they expect will invariably be higher.

As high perhaps as commuters in major cities such as Tokyo, London and Paris, with MRT stations within walking distance in almost every part of the city.

Singapore needs to ramp up its network - and make up for lost time brought up by the COE-rich years - if it wants to make public transport a viable alternative.

If not, the combined angst of a car-deprived population and a frustrated commuting public might exact quite a political price.

Source : Straits Times - 05 Sept 2008

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Singapore, China reach free trade accord

Singapore, China reach free trade accord

PM expected to sign wide-ranging pact in Beijing next month

By Tracy Quek, China Correspondent

TIANJIN: Singapore has become the first Asian country to conclude a comprehensive bilateral Free Trade Agreement (FTA) with China, a move that will boost economic and trade ties between the two countries even further.
Deputy Prime Minister Wong Kan Seng and Chinese Vice-Premier Wang Qishan yesterday announced the successful end to two years of FTA negotiations during the 5th meeting of the Joint Council for Bilateral Cooperation (JCBC).

The high-powered JCBC sets the agenda for economic cooperation between the two countries.

Both sides had held eight rounds of talks to hammer out the trade deal since negotiations began in October 2006. The eighth and final round of FTA talks took place from Monday to Wednesday in Beijing, even as high-level Singapore and Chinese delegations held separate meetings in Tianjin.

The formal signing of the pact is expected to take place next month when Prime Minister Lee Hsien Loong attends the 7th Asia Europe Meeting Summit in Beijing.

The deal is a ‘major achievement’ and a ‘new milestone’ in Singapore’s long and established relationship with China which took root before diplomatic ties were officially established in 1990, said DPM Wong.

Citing two bilateral flagship projects, the Suzhou Industrial Park (SIP) and the Tianjin eco-city, Mr Wong said: ‘This long-term relationship has been concretised in many ways apart from growing markets and access…the FTA further strengthens our relations.’

The pact, he added, will result in ‘liberalisation, the lowering of tariffs for many items, goods, services, investments, and so on’.

‘With far better access to each other’s markets, lower duties and tariffs, the FTA will be beneficial to both sides. It is a win-win situation,’ he told reporters after a morning of meetings during which senior Singapore and Chinese officials discussed the FTA, the SIP and other issues.

For Singapore businesses, he added, there will be ‘far better access to the Chinese market, therefore the FTA is a big plus for our businessmen doing business in China’.

The bilateral FTA builds on the Asean-China Free Trade Agreement ( ACFTA), said a statement from the Ministry of Trade and Industry yesterday.

The Asean-China FTA process began in 2002. Now, only the investment component remains to be settled. Agreements on goods and services have been reached.

The China-Singapore pact, which is broader in scope than the Asean-China accord, ‘provides an impetus’ for the ACFTA to be concluded, said Mr Wong.

The Singapore-China FTA will cover a range of areas including trade in goods, trade in services, movement of people, investment, customs procedures, technical barriers to trade, food safety and economic cooperation, said the MTI statement.

Further details will be released after the formal signing of the deal.

Compared to a regional trade pact, a bilateral FTA could result in ‘more gains for Singapore, as the commitment would be much deeper at the bilateral level’, said DBS Bank economist Irvin Seah.

China has seen rapid growth and is a magnet for foreign investments, he said, which means ‘gaining a foothold there and having deeper and broader market access will benefit Singapore exporters tremendously’.

‘Chinese companies are also looking outwards. Having this FTA will lay a solid foundation for us to attract Chinese investments,’ he added.

Companies, both in Singapore and China, welcomed the news.

One mainland company hoping for some goodies under the new FTA is Guangdong-based Dongguan Nuoweier Technology Company, which manufactures and exports welding and incision equipment used on ships to Singapore and Asia-Pacific countries.

Mr Li Baolei, its sales manager for the Asia-Pacific region, told The Straits Times: ‘I’m sure the FTA will bring us some benefit. We hope mostly for favourable tariff policies.’

Two countries’ strong trade ties

Singapore’s trade with China hit a record S$91.6 billion last year.

China is Singapore’s third-largest trading partner, while the Republic is China’s eighth-largest trading partner.

China is Singapore’s top investment destination, and Singapore is China’s seventh largest investor.

Singapore’s cumulative actual investments in China amounted to more than US$33 billion (S$47 billion) as of the end of last year.
Source: MTI

Source : Straits Times - 05 Sept 2008

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COE price for small cars plunges by 30%

COE price for small cars plunges by 30%

By Maria Almenoar

CERTIFICATE of entitlement (COE) prices for small cars plummeted 30 per cent yesterday to $9,501, hitting their lowest levels in over a year.
The fall follows months of softening demand which dealers say has been driven by soaring inflation.

They blamed rising prices for everything from rice to fuel, along with a growing number of Electronic Road Pricing gantries, for keeping budget-conscious small car buyers out of showrooms.

‘This group of buyers are the hardest hit by the softening economy so they may reconsider big purchases like a car,’ said Mr Vincent Ng, the product manager for Kah Motor in Ubi.

In the latest bidding results released yesterday, the COE for cars under 1,600cc dropped from $13,289 to $9,501. It was the lowest mark since August last year, when it dove to $8,118.

Some analysts blamed high petrol prices, currently at $1.963 a litre for 92-octane fuel. That is a roughly 30 per cent rise over this time last year. Motorists have also faced about a 10 per cent rise in parking charges over the last year.

The president of the Motor Traders Association of Singapore, said new ERP gantries and a recent increase in charges may have also discouraged potential small car buyers. ‘Perhaps some marginal buyers have decided not to buy a car,’ said Ms Tan Kheng Hwee.

In July, several gantries were opened near the Singapore River and the Government announced plans to build another six across the island by November.

The move was part of a wide-ranging plan to relieve congestion and encourage more Singaporeans to use public transport.

The rising costs seem to be encouraging people to hang onto their cars for longer. In the first six months of this year, about 22,400 small cars were taken off the roads, compared with over 25,800 during the same period last year.

Inflation and ERP gantries, though, seem to be having less of an effect on larger car buyers. In the latest bidding yesterday, COE prices of cars 1,600cc and above fell, but by just over 3.5 per cent to $13,389. Prices for all other categories, however, increased.

The COE for commercial vehicles ended 7 per cent higher at $13,889 while the motorcycle premium ended 11 per cent higher at $1,452. The Open COE category - used mainly for cars - ended 2 per cent higher at $14,300.

Next month, the Government is expected to reduce the COE supply to compensate for the fact that fewer cars are being taken off the roads. Industry watchers say that will likely result in higher prices.

Source : Straits Times - 04 Sept 2008

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Tang jailed for a day, fined $17,000

Tang jailed for a day, fined $17,000
By Khushwant Singh and Sujin Thomas

Ailing retail magnate Tang Wee Sung (left) walking out of Queenstown Remand Prison with his lawyer Cavinder Bull. Tang’s sentence for his attempt to illegally purchase a kidney included a day’s jail, but he was released after a few hours. ST PHOTO: AZIZ HUSSIN

AT 5.45PM yesterday, ailing retail magnate Tang Wee Sung, 56, walked out of Queenstown Remand Prison.
He had been sentenced in the afternoon to a day’s jail, but was set free at the end of the business day, after two hours.

About the case

Tang Wee Sung arriving in court with his nurse. He was jailed for one day and fined $17,000 for lying under oath and entering into an illegal kidney deal. ST PHOTO: WONG KWAI CHOW

Wang Chin Sing (left) was offered $300,000 to arrange the illegal sale of Mr Sulaiman’s kidney to Tang. He will be sentenced tomorrow.

Sketch of Indonesians Toni (left) and Sulaiman who were jailed for agreeing to sell their kidneys for over $20,000 each.
TANG Wee Sung is the third person to be jailed in the first illegal organ transplant case here.

In June, an Indonesian by the name of Toni, 27, was jailed 31/2 months and fined $2,000, while his compatriot Sulaiman Damanik, 26, served a three-week prison term.

Both men had lied in statutory declarations and before a transplant ethics committee that they were distant relatives of the organ recipients.

Toni sold his kidney for 186 million rupiah (S$29,000) to an Indonesian woman; Mr Sulaiman was arrested here before he could sell his kidney to Tang for $23,700.

Wang Chin Seng, 44, who helped arrange the illegal deals, will be sentenced tomorrow.

He admitted to 10 charges which included organ trading and coaching Tang and the Indonesians to lie in their statutory declarations; he also coached them to lie to the ethics committee that they were related to their respective recipients and that no payment was involved.

Wang was offered $300,000 to arrange the deal between Tang and Mr Sulaiman.

Another man, Whang Sung Lin, Tang’s 44-year-old nephew-in-law, has been charged with abetment by introducing Wang to Tang in return for a fee.

His trial is being arranged.

‘I’m fine,’ were the only words he uttered. He waved at family members as he got into a waiting car.

It brought to an end his run-in with the law in the first case here involving the illegal sale of a human organ - a kidney in this instance.

Earlier in the day, he paid $17,000 in fines for lying under oath and for organ trading.

In handing down the sentence, District Judge Ng Peng Hong said he was mindful that Tang’s potential kidney donor Sulaiman Damanik had been jailed two weeks for the same offence of making a false statutory declaration, but that, ‘given the very exceptional circumstances of Tang’s extreme ill health’, a long jail term was unnecessary.

Judge Ng acknowledged that Tang had broken the law, but added that more guilt should be placed with the dealers or middleman who sought to profit from the desperation of the poor organ seller and that of the terminally-ill buyer.

Tang, who pleaded guilty last week, stood expressionless in the dock for about half an hour before he was allowed to sit down.

When the hearing started at 2.30pm, the public gallery was packed with about 50 family members, friends and colleagues. Police turned away latecomers.

Tang’s lawyer, Senior Counsel Cavinder Bull, had asked the court to be lenient to his client last week, citing Tang’s long list of ailments and his daily regimen of 50 pills and injections.

Mr Bull suggested that the court impose a fine for his client’s offence of organ trading, which, under the Human Organ Transplant Act, stipulates a fine of up to $10,000 or a jail term of up to a year or both.

He also asked the court to consider a conditional discharge for Tang’s making of a false statutory declaration. This offence comes with a mandatory jail term of up to three years. Offenders may also be fined up to $10,000.

Mr Bull’s arguments last week centred on how inexpedient it would be to jail Tang, and that, at most, the penalty should not be more than a day’s jail.

The prosecution had argued that Tang was as guilty as Sulaiman in the eyes of the law and was the driving force in the illicit transaction.

The case has sparked a national debate on whether laws here need to be changed to allow some form of organ trading.

On the defence’s arguments that organ trading could soon be decriminalised by Parliament, Judge Ng said the matter was too speculative for him to consider.

He noted, however, that Tang had acted out of desperation, believing he was likely to die without a kidney transplant.

Mr Bull told reporters outside the courtroom that he was satisfied with the sentence and ruled out an appeal.

He said: ‘He is obviously going to be relieved that it is not longer than what he got, but I would not underestimate the impact of the sentence on him.’

Family members were, however, upset that Tang was jailed even a day. His older sister Janet Liok told The Straits Times: ‘We are very sad. He’s very sick and we are very worried now.’

Several members of the Singapore Retailers Association were also present.

Mr Keith Chua, 55, who has been close to Tang since their days at Anglo-Chinese School, felt that the judge had been merciful.

The businessman, who showed up in court with five other former schoolmates, said: ‘The judge explained the basis for his decision quite clearly. He is still going to have to deal with his medical condition once this is over.’

Later yesterday evening, Mr Bull told The Straits Times that Tang had gone home after being released from prison.

‘He was tired from the day’s activities. We discussed some legal matters and then I left him with his nurse,’ said Mr Bull.

Tang, who stepped down as the executive chairman of the C.K. Tang retail empire after his conviction last week, has one to two years to live without a kidney transplant.

Source : Straits Times - 04 Sept 2008

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Singapore Charities Act to be tightened with proposed amendments

Singapore Charities Act to be tightened with proposed amendments

More power for Commissioner to query fund-raisers and IPCs

By JAMIE LEE

THE government is tightening up on fund-raisers and institutions of a public character (IPCs) with more proposed amendments to the Charities Act.

The amendments, which follow an earlier round last year, would empower the Commissioner of Charities to gather information on fund-raisers other than charities and call for inquiries and suspension of board members of IPCs, the Office of the Commissioner of Charities said yesterday.

It would also look to boost accounting standards for charities and fund-raising regulations, and clarify the roles of board members of charitable organisations and IPCs.

Charities and IPCs that do not comply with accounting standards determined by the Accounting Standards Council (ASC) for charities may be fined up to $10,000, though individual charities and IPCs can be exempted from compliance of certain clauses by the Commissioner of Charities.

The Office of the Commissioner of Charities has also proposed to allow the ASC to determine the income and expenditure thresholds for charities and IPCs that would warrant an external audit. Currently, all IPCs and charities with income or expenditure exceeding $250,000 are subjected to external audits.

In addition, the ministry said it would repeal Part VII of the Charities Act and transfer relevant provisions to the fund-raising regulations. These include a prohibition on professional fund-raiser raising money for a charitable institution without an agreement in the prescribed form. Such professionals must also indicate the institutions benefiting and the remuneration arrangements.

Part VII had not been brought into operation, despite it being part of the Act since 1994, as ‘there was then no need to regulate fund-raising’, the Office of the Commissioner of Charities said in a media release. It added that in recent years, there have been more questions raised on accountability in commercial fund-raising.

Fund-raisers that are not charities could also be forced to provide information needed for any inquiries by the Commissioner of Charities, as ‘occasionally, the need to conduct further investigation on fund-raisers following public complaints may be thwarted by the unwillingness of the fund-raiser to furnish the Commissioner with information’, it said.

The Office of Commissioner of Charities is also proposing to extend its jurisdiction to include ‘instigating inquiry and invoking protective actions such as the suspension or removal of board members, as in the case of charities’.

It has suggested adding a provision to protect governing board members and employees at charities from personal liability to assuage the ‘perceived risks’ in the light of recent controversies in the charity circuit that has deterred volunteers, as well as replacing the term ‘charity trustees’ to distinguish between them and those who have obligations towards the Trustees Act.

Source : Business Times - 04 Sept 2008

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Singapore Temasek, GIC dominate world’s largest SWF deals

Singapore Temasek, GIC dominate world’s largest SWF deals

The S’pore units invest a combined US$9.1b, 47% more than a year ago

By CONRAD TAN

(SINGAPORE) Temasek Holdings and the Government of Singapore Investment Corp (GIC) have been involved in five of the 10 biggest deals involving sovereign wealth funds on record, according to the latest estimates by Thomson Reuters.

Singapore’s two state-owned funds have poured billions into US and European banks since last year. The sheer size of their recent investments has surpassed many of the biggest purchases made by sovereign wealth funds in the past.

GIC’s injection of 11 billion Swiss francs (S$14.24 billion) into Switzerland’s biggest bank, UBS, last December is the single largest investment by a sovereign fund on record, according to data compiled by Thomson Reuters.

GIC was also part of the consortium led by Spain’s Ferrovial Group that bought UK-listed BAA, the world’s biggest airport operator, for £10.3 billion (S$26.7 billion) in May 2006. That deal, which also included Canadian pension fund Caisse, still stands as the largest investment involving sovereign funds on record.

So far this year, both GIC and Temasek have made a combined US$9.1 billion worth of investments, more than a third of all deals involving sovereign funds worldwide and a 47 per cent increase from a year earlier, according to Thomson Reuters estimates.

GIC invests Singapore’s foreign reserves including pension savings, estimated at over US$300 billion, while Temasek manages a separate S$185 billion investment portfolio.

The bulk of these investments were in the US, the largest of which was GIC’s US$6.88 billion investment in banking giant Citigroup in January.

That was the single biggest investment by any sovereign fund this year and the fourth largest on record.

GIC was also one of four investors in the fifth-largest sovereign fund deal on record - a £2.5 billion takeover of Associated British Ports, the UK’s largest port operator, in March 2006.

GIC invests Singapore’s foreign reserves including pension savings, estimated at over US$300 billion, while Temasek manages a separate S$185 billion investment portfolio.

Temasek’s US$4.4 billion investment in US investment bank Merrill Lynch last December is the 10th largest sovereign fund deal on record. In January, two other sovereign funds, the Korea Investment Corp and the Kuwait Investment Authority, each poured another US$2 billion into Merrill.

Separately, Temasek invested £975 million in UK banking group Barclays in July last year. It is now likely to raise its stake in Merrill to as much as 14 per cent from about 9 per cent, after US regulators gave their approval this week (Aug 26).

Together, GIC and Temasek accounted for 10 of the 22 major deals involving sovereign funds this year, until Aug 28.

Investments by sovereign funds worldwide rose 65 per cent to US$25.5 billion, from US$15.4 billion for the same period last year, according to Thomson Reuters.

Source : Straits Times - 04 Sept 2008

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Record $5b earnings for Mice - Singapore

Record $5b earnings for Mice - Singapore

Singapore also ranked top city for business meetings, conventions

By Jessica Cheam

Mr Anthony Chong’s Kingsmen Exhibits wins the service excellence award for the second year.

THEY are the mice that roared.
Business travel and events earned over $5 billion for Singapore last year - a new record for the so-called Mice sector.

The industry - meetings, incentive travel, conventions and exhibitions (Mice) - grew by $1 billion in just a year, topping the $4 billion it reaped in 2006.

Unveiling fresh figures for 2007, Senior Minister of State for Trade and Industry S. Iswaran said yesterday that business travel and Mice visitors accounted for almost three million visitor arrivals and 40 per cent of total tourism receipts.

For the first time, Singapore was ranked as the top international meeting city in the world, over old favourites such as Paris and Vienna, by the Union of International Associations.

This was the ‘icing on the cake that capped an outstanding year’, said Mr Iswaran at the Singapore Business Events awards last night at Shangri-La Hotel.

Even as he congratulated industry players for this achievement, Mr Iswaran acknowledged the current heightened uncertainty in the global economy and financial markets.

He cited recent figures by the International Monetary Fund, which projected the moderation of global growth from 5 per cent in 2007, to 4.1 per cent this year and 3.9 per cent next year.

Against this backdrop, the international travel industry is expected to slow down, and the industry will face challenges in the coming months, he said.

But the Singapore Tourism Board and industry partners ’still see good potential’ in future business events beyond 2010, he added.

By 2010, Singapore will be hosting the world’s first summer Youth Olympic Games, and the Republic’s two integrated resorts would have opened, along with the new Marina Bay Financial Centre.

The president of the Singapore Association of Convention and Exhibition Organisers and Suppliers, Mr Edward Liu, told The Straits Times that Singapore has been ‘pro-active in bringing in world-class events’ such as Formula One and the Youth Olympics.

‘These events will generate a lot more tourism arrivals and receipts to compensate for any slowdown of visitor numbers,’ he said.

He added that the latest figures show that the Mice industry is on track to achieve its target of contributing $10.5 billion to the economy by 2015 as outlined in the Tourism 2015 blueprint.

The greatest challenge for the industry now is ‘going out there to bring back past trade shows and woo more mega events’, said Mr Liu.

Plans to upgrade Singapore Expo’s facilities were also announced by Mr Iswaran last night. A suite of meeting rooms over two floors will be added to the Expo, and improvements will be made to the venue’s technical and audio-visual capabilities. Its facade, landscaping and lighting will also be enhanced.

Last night’s awards, in their second year, honoured industry players from venues to event organisers. The winners were selected by a panel of 21 judges and assessed on their ability to deliver world-

class events and how they helped raise Singapore’s profile as a Mice destination.

Design and production firm Kingsmen Exhibits won the Service Partner Excellence Award for the second year running. Its executive director, Mr Anthony Chong, said the award ’serves as a reaffirmation that we are on the right track’.

One individual honour - Business Event Ambassador - was given to Professor Feng Pao Hsii, adjunct professor of medicine at the National University of Singapore’s Yong Loo Lin School of Medicine. He was elected chairman of the National Arthritis Foundation in 1997 and has been organising medical conferences in Singapore for the last 30 years.

‘As a Mice hub, Singapore still has some way to go but if we work together, we are confident of reaching our goal,’ said Prof Feng yesterday.

Despite short-term challenges, significant opportunities lie ahead, added Mr Iswaran. He said: ‘We are committed to a productive public-private engagement

…to maintain Singapore’s pre-eminent global position in this industry.’

Source : Straits Times - 03 Sept 2008

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Tourism will pick up by 2010 - Singapore

Tourism will pick up by 2010 - Singapore

Opening of integrated resorts and Gardens by the Bay will give boost

By Lim Wei Chean

STB chief Lim Neo Chian, who said last week that he was stepping down, feels that the goal to draw 17 million visitors to spend $30 billion by 2015 is still attainable. — ST PHOTO: LIM WUI LIANG

FEWER tourists may be coming but Singapore’s outgoing tourism chief is confident that things can turn around by 2010.
From Mr Lim Neo Chian’s point of view, the opening then of the two integrated resorts (IRs) in Marina Bay and Sentosa, as well as the Gardens by the Bay in Marina South, will be a fillip for the industry.

Tourist arrivals for the first six months of this year were lower than the figure for the same period last year, putting into doubt whether this year’s target of 10.8 million visitors can be met.

There was also a 0.2 per cent drop in spending by visitors in the first half of this year compared to the same period last year.

‘I think what is important is to ask if the slowdown is the result of us losing our competitiveness or our destination appeal,’ said Mr Lim, 56, of the industry which employs some 150,000 people.

His own assessment is that the drop in numbers is a result of the current global slowdown.

He added: ‘All our key markets are facing economic problems, high inflation, slowdown in growth and financial uncertainties in the outlook going forward.’

He is ‘not too worried’ as it is a ’short-term’ problem.

While the impact will be felt this year and may spill over to next year, he said the goal to draw 17 million visitors to spend $30 billion by 2015 - first announced in 2005 - is still attainable.

Mr Lim, who said last week that he was stepping down, also spoke about his six-year tenure at the Singapore Tourism Board (STB).

Three occasions stood out as most memorable for him:

May 31, 2003, when the World Health Organisation declared Singapore free of severe acute respiratory syndrome (Sars);

May 26, 2006, when the Marina Bay integrated resort was awarded to Las Vegas Sands after a ‘robust and transparent’ process; and

May 11 last year, when Singapore won the rights to host a Formula One race.

There were challenges, of course, such as Sars, which saw tourism grinding to a halt. Still, he viewed that as a blessing in disguise as it allowed him, as the new STB chief then, to rally industry players to focus on longer-term plans.

He noted that it also made the Government realise how important tourism is. ‘It was very clear during the Sars period when tourists stopped coming and people stopped spending. The city, in many areas, came to a standstill.’

That, to some extent, helped him secure the support to work out a road map to take the industry to the next level.

Successes along the way included the International Monetary Fund and World Bank meetings here in 2006.

But he said that it is time to make way for new blood after spending six years at the helm.

‘This is the longest appointment I have ever held,’ he noted, adding that his previous stints as Chief of Army, chief of JTC and head of Suzhou Industrial Park were three years each.

Ms Aw Kah Peng, assistant managing director of industry at the Economic Development Board, will succeed him.

He is looking for another job that will give him time to spend with his family, play golf and travel for leisure.

He and his homemaker wife have three children.

‘If something interesting comes along, I will be prepared to take on new challenges. I am a little too young to retire,’ he said.

Source : Straits Times - 03 Sept 2008

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Platform doors for elevated Singapore MRT stations

Platform doors for elevated Singapore MRT stations

THE Land Transport Authority (LTA) will spend more than $126 million to install platform screen doors at elevated MRT stations to prevent track intrusions.
The 1.5m-high doors will go up first at Yishun, Jurong East and Pasir Ris MRT stations by the fourth quarter of next year.

By 2012, the remaining 33 above-ground stations of the North-South and East-West lines will be progressively fitted with the doors, said the LTA in a statement this week.

It said installation works will be carried out at night when trains are not running so that commuters will not be inconvenienced.

The decision to install the doors comes after a rise in the number of cases of people falling onto the tracks, whether intentionally or otherwise.

Track intrusions have gone up from an average of 16 cases a year in 2004 and 2005 to 30 in 2006 and 31 last year.

In January, the Government announced that it will install doors at elevated MRT stations to cut down on such track intrusions.

It is also spending $29 million to install more closed-circuit television cameras at train stations.

Singapore Technologies Electronics has been awarded the $112.3 million job to design and make the doors.

The company, which is also involved in the upcoming Circle Line, has worked on similar projects in places such as Taiwan, China and Thailand.

A second contract, worth $13.9 million, was awarded to Westinghouse Brake and Signal Holdings to provide the signalling interface for the platform screen doors to ensure that they are synchronised with train doors.

Source : Straits Times - 03 Sept 2008

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Singapore Labour law to cover more workers

Singapore Labour law to cover more workers

Proposed changes to benefit confidential staff and lower-paid workers

By Goh Chin Lian

A LABOUR law which has not been changed in 13 years will soon be amended to keep it up to date with today’s labour market conditions.
The Manpower Ministry is tabling for public consultation a slew of proposed changes to the Employment Act, which offers basic benefits such as salary protection, minimum employment terms and dispute resolution.

Among the beneficiaries of the proposed changes will be some 153,000 ‘confidential staff’, such as accounts assistants, human resource clerks and secretaries.

These have been excluded from the Employment Act so far because it was deemed that their access to company information could lead to potential conflicts of interest and allow unions an unfair bargaining advantage.

In today’s corporate world, however, sensitive information is largely handled by senior management, said the Manpower Ministry when explaining the proposed change.

Also to benefit from the proposed changes: About 44,000 executives and junior managers who earn up to $2,500 a month. They will be able to go to the Labour Court for salary disputes, where previously they could not.

This change recognises the increased share of professionals, managers, executives and technicians in the workplace, said the ministry.

Their proportion has gone up from 40 per cent of the resident workforce in 1997 to 49 per cent last year.

They used to be excluded from the Act as it was assumed that they could protect their own interests by going to the civil courts.

But this process can be long-drawn and costly, so the ministry is offering those paid below $2,500 access to the Labour Court.

The Employment Act currently covers some 1.4 million workers. Senior managers, seamen, domestic workers and government employees are excluded, and will continue to be excluded even after the changes.

The proposed changes also factor in the outsourcing boom that has swelled the ranks of contract workers, from 59,400 in 2001 to 183,000 in June last year, and shortened employment tenures. One-year contracts are now not uncommon.

As a result, the ministry proposes that those who have worked at least three months can now qualify for paid sick leave, instead of six months.

Also, part-time employment will be redefined as working 35 hours or less a week, instead of 30 hours or less.

Many companies told the Singapore National Employers Federation (SNEF) that the 30-hours cap limited their ability to offer part-time work, said its executive director Koh Juan Kiat.

The change will give them fresh impetus to offer such work and attract more women back into the workforce, he said.

In proposing the changes, the ministry said it struck a balance between protecting workers’ interests and ensuring Singapore’s labour market stays flexible and competitive.

The SNEF and the National Trades Union Congress (NTUC) have already been consulted on the proposed changes, it said.

NTUC deputy secretary-general Halimah Yacob told The Straits Times yesterday that the labour movement has been championing the cause of confidential staff for years, as some of them do not earn high pay.

It has also been asking for the salary ceilings to qualify for benefits to be raised, in line with median salaries here.

She said: ‘If the salary ceiling is not revised, more and more employees will be excluded from the ambit of the Act.’

The Manpower Ministry is indeed revising the salary ceiling, raising it from $1,500 to $2,000 for workers who come within the Act’s ambit.

More details of the proposed changes can be found on the Government feedback portal, www.reach.gov.sg. The public can submit feedback by e-mail to MOM_WPSD_EA@mom.gov.sg .

Public consultation ends on Sept 22.

The proposed amendments are due to be tabled in Parliament next month.

Source : Straits Times - 03 Sept 2008

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