DAILY NEWS

Daily News – 27, 28 & 29 Aug 2022 (Sat, Sun & Mon)

SINGAPORE REAL ESTATE

Singapore’s transformation will include mature estates, not just new ones: PM Lee
Singapore – Mature estates are part of the effort to reimagine and transform Singapore, said Prime Minister Lee Hsien Loong on Sunday (Aug 28), stressing that the plans he laid out during last week’s National Day Rally do not apply to just new estates.
https://www.straitstimes.com/singapore/singapores-transformation-will-include-mature-estates-not-just-new-ones-pm-lee

Singapore housing deemed ‘relatively affordable’ in Asia-Pacific: report
Singapore is the only gateway city in the Asia-Pacific region where housing is deemed relatively affordable and attainable, a new report has found. This is when compared to the most populous cities in the region, said the Urban Land Institute (ULI) in its first home attainability index report.
https://www.businesstimes.com.sg/real-estate/singapore-housing-deemed-relatively-affordable-in-asia-pacific-report

Drop in appetite for private homes among some HDB owners
Singapore – Housing Board upgraders’ love affair with private property cooled in the first half of this year following the Dec 16 round of property curbs and higher mortgage rates. Fewer HDB flat owners bought private property even as HDB resale flat prices gained 5.3 per cent in the first half compared with a 4.2 per cent rise in private home prices.
https://www.straitstimes.com/business/property/latest-property-curbs-higher-mortgage-rates-putting-off-some-hdb-upgraders

Orchard Towers clubs’ licences won’t be renewed: Vacant spaces will fill fast but rebranding not easy
Singapore – The long-awaited cleanup of Orchard Towers will see businesses including food and beverage outlets quickly occupy the space vacated by the nightclubs and pubs, said property agents.
https://www.straitstimes.com/singapore/courts-crime/vacant-spaces-will-fill-fast-but-rebranding-not-easy

Resort with rooms made out of upcycled public buses to open at Changi Village in April 2023
Singapore — A resort made out of 20 public buses from SBS Transit that are no longer in service — touted as the first in Southeast Asia that will use upcycled buses as guest rooms — will be built in Changi Village and open its doors to the public in April 2023
https://www.todayonline.com/singapore/bus-resort-changi-village-1978781

More BTO flats in non-mature estates set aside for first-time applicants; next launch on Aug 30: HDB
Singapore – First-timer applicants will now stand a better chance at securing a Build-To-Order (BTO) flat in non-mature estates, starting with the upcoming sales launch next Tuesday (Aug 30).
https://www.straitstimes.com/singapore/housing/more-bto-flats-in-non-mature-estates-set-aside-for-first-time-applicants-next-launch-on-aug-30-hdb

CNA Explains: Will the HDB mortgage rate go up as interest rates rise?
Singapore : As interest rates for home loans rise, more flat buyers are borrowing from the Housing and Development Board (HDB) rather than banks to finance their homes. At 2.6 per cent, HDB’s concessionary mortgage rate used to look expensive next to bank rates of less than 2 per cent.
https://www.channelnewsasia.com/singapore/hdb-cpf-mortgage-rate-bank-loans-finance-cna-explains-2898116

SINGAPORE ECONOMY

DPM Heng Swee Keat to meet Hong Kong leaders, take part in 7th Belt and Road Summit
Singapore – Deputy Prime Minister Heng Swee Keat will make a working visit to Hong Kong from Sunday (Aug 28) to Wednesday. He will meet members of the Special Administrative Region’s leadership, said the Prime Minister’s Office (PMO) on Sunday.
https://www.straitstimes.com/singapore/politics/dpm-heng-to-meet-hong-kong-leaders-and-take-part-in-7th-belt-and-road-summit

Cohesion, trust key for S’pore to succeed amid more uncertain geopolitics: Vivian Balakrishnan
Singapore – The world is entering a very dangerous phase full of uncertainties, and accidents and miscalculations by global powers could easily lead nations down a path of conflict, Foreign Minister Vivian Balakrishnan said.
https://www.straitstimes.com/singapore/politics/cohesion-and-trust-are-key-for-singapore-to-succeed-amid-more-uncertain-geopolitics-says-vivian

Singapore tourist arrivals rise for 6th straight month in July to post-Covid record of 726,601
Singapore’s international visitor arrivals grew for the 6th straight month in July, setting yet another record since the beginning of the Covid-19 pandemic, going by the latest figures from the Singapore Tourism Board (STB) on Friday (Aug 26).
https://www.businesstimes.com.sg/government-economy/singapore-tourist-arrivals-rise-for-6th-straight-month-in-july-to-post-covid

Singapore services receipts up 14.7% in Q2
Singapore’s services industries recorded a 14.7 per cent rise in business receipts on the year for the second quarter, according to the Department of Statistics (Singstat) on Friday (Aug 26). This marks an improvement from the 12.7 per cent year-on-year growth observed in the previous quarter.
https://www.businesstimes.com.sg/government-economy/singapore-services-receipts-up-147-in-q2

Outperformance in S-Reits in STI reserve list
With a 7.6 per cent gain in total returns for the year-to-date, the Straits Times Index (STI) remained among the best performing stock benchmarks globally this year. Based on data from FTSE Russell as at Jun 30, 2022, there are 7 S-Reits in the STI with combined indicative weight of more than 14 per cent.
https://www.businesstimes.com.sg/companies-markets/outperformance-in-s-reits-in-sti-reserve-list

Singapore factory output growth slows to 0.6% in July as electronics output falls
Singapore’s factory production saw surprisingly low growth of 0.6 per cent in July, vastly undershooting economists’ expectations of 5.3 per cent – the median forecast in a Bloomberg poll of private analysts – owing to contraction in the key electronics cluster and further declines in biomedical manufacturing.
https://www.businesstimes.com.sg/government-economy/singapore-factory-output-growth-slows-to-06-in-july-as-electronics-output-falls
https://www.straitstimes.com/business/economy/spore-factory-output-growth-slows-sharply-to-06-in-july-chip-production-shrinks-again

Mice industry upturn can boost economy
Singapore’s reputation as a top Mice (meetings, incentives, conventions and exhibitions) destination rests on durable pillars. It has a pro-business environment and offers world-class facilities and infrastructure, professional services, award-winning unique event venues and cool attractions, all brought together in a rich and unique Asian setting.
https://www.straitstimes.com/opinion/st-editorial/the-straits-times-says-mice-industry-upturn-can-boost-economy

COMPANIES’ BRIEF

Frasers Property to redeem S$350m in 3.95% perps
Frasers Property : TQ5 0% is exercising its call option to redeem all S$350 million of its 3.95 per cent of its fixed-rate subordinated perpetual securities. They will be redeemed at par with interest accrued on the first reset date on Oct 5, 2022.
https://www.businesstimes.com.sg/companies-markets/frasers-property-to-redeem-s350m-in-395-perps

Frasers Property should go private to address its depressed stock
After taking Frasers Hospitality Trust (FHT) private, Frasers Property (FPL) should perhaps look into organising a privatisation deal for itself. Much like FHT, the property group has performed poorly and struggled to garner a decent market valuation. Shares in FPL closed at S$1.05 on Friday (Aug 26), which is a 58.5 per cent discount to the group’s book value as at Mar 31 of S$2.53 per share
https://www.businesstimes.com.sg/opinion/frasers-property-should-go-private-to-address-its-depressed-stock

Shangri-La Asia extends its losses; H1 FY2022 net loss at US$158.2 million
Hotel group Shangri-La Asia reported a net loss of US$158.2 million for the first half of FY2022, marking 2 consecutive years of net losses since the Covid-19 pandemic hit the hospitality industry. In a bourse filing on Friday (Aug 26), the company reported that its net loss for the period ending June 30, 2022 went up by 164.5 per cent from a net loss of US$59.8 million for the same period a year ago.
https://www.businesstimes.com.sg/companies-markets/shangri-la-asia-extends-its-losses-h1-fy2022-net-loss-at-us1582-million

VIEWS, REVIEWS, FORUM AND OTHERS

Global real estate poised to perform going forward
As the world recovers and reopens at varying speeds, the real estate industry is transforming and offering new opportunities. While the uncertainty caused by the war in Ukraine and increased rate hike expectations remain wild cards, the worst of the Covid-19 pandemic has passed.
https://www.businesstimes.com.sg/wealth-investing/global-real-estate-poised-to-perform-going-forward

Valuing natural capital: Asia has the most to lose, and gain
Becoming net-zero is no longer going to be enough; the world needs to also be “nature-positive” – and that means going beyond minimising negative impacts on our ecosystems and working towards enhancing them, global leaders have decided.
https://www.businesstimes.com.sg/companies-markets/valuing-natural-capital-asia-has-the-most-to-lose-and-gain

What’s all the fuss about green bonds?
What’s all the fuss about green bonds? Can I invest in them and are they any different from normal bonds?
https://www.straitstimes.com/business/invest/get-to-know-green-bonds-0

Consumers thinking twice about overseas purchases as air and sea freight rates soar
Singapore – Ms Caitlyn Cheng, who has been shopping on e-commerce platform Taobao for about eight years, became more selective in her purchases after noticing a rise in shipping costs at the start of the year.
https://www.straitstimes.com/singapore/consumers-thinking-twice-about-overseas-purchases-as-air-and-sea-freight-rates-soar

New mask rules kick in from today. Here’s what you need to know
Singapore: From Monday (Aug 29), people in Singapore will not be required to wear a mask except on public transport and in healthcare facilities. The authorities announced details on Wednesday after Prime Minister Lee Hsien Loong said during his National Day Rally speech that COVID-19 rules on wearing masks will be eased.
https://www.channelnewsasia.com/singapore/covid-19-mask-requirement-relaxed-measures-where-wear-them-2897021

Some sellers expect dip in demand when masks are no longer needed in most places
Singapore – At the peak of the Covid-19 pandemic, she could sell about 50 boxes of face masks in a day, but her traditional medical shop in Ang Mo Kio could not sell even a single box in the past week.
https://www.straitstimes.com/singapore/some-mask-sellers-brace-for-dip-in-demand-as-they-are-no-longer-needed-in-most-places