DAILY NEWS

Daily News – 24th November 2017

Top Story

S’pore upgrades 2017 GDP forecast; moderation expected next year
Stronger-than-expected growth, expanding exports and benign inflation are all coming together to paint a very different picture of the economy that had started the year on an uncertain note. Singapore’s economy is on track for an impressive finish this year, lifted by an improved global outlook and a stronger pickup in electronics, even though economists expect growth to moderate in the coming year due to possible tapering in semiconductor demand and the slowdown of key markets such as China.
http://www.businesstimes.com.sg/government-economy/spore-upgrades-2017-gdp-forecast-moderation-expected-next-year
http://www.businesstimes.com.sg/infographics/singapore-on-track-to-stronger-growth
http://www.straitstimes.com/business/economy/spore-economy-on-target-for-strong-showing?login=true
http://www.channelnewsasia.com/news/singapore/singapore-s-gdp-growth-races-to-near-4-year-high-in-q3-time-to-9432300
http://www.todayonline.com/singapore/spore-economy-grows-52-q3-full-year-forecast-raised

Singapore Economy

S’pore-Jiangsu tie-up holds opportunities in trade, professional services
Singapore firms that know the region well stand to gain from the city state’s close cooperation with Jiangsu, especially as more Chinese firms are going international, Finance Minister Heng Swee Keat has said. With the coastal province tapping China’s Belt and Road Initiative to link itself up with the rest of Asia and Europe, Singapore and Jiangsu have a valuable role to play in the resulting international collaborations, he said at the Singapore-Jiangsu Cooperation Council (SJCC) meeting on Thursday.
http://www.businesstimes.com.sg/government-economy/spore-jiangsu-tie-up-holds-opportunities-in-trade-professional-services
http://www.straitstimes.com/asia/east-asia/trade-services-openings-in-jiangsu-for-singapore-firms

Block71 Suzhou opens to boost tech business ties between Singapore and China
Block71 Suzhou – an incubation space initiative in the Chinese city to promote tech innovation and entrepreneurship between Singapore and China – was officially launched on Thursday by Singapore’s Minister for Finance Heng Swee Keat. He unveiled the initiative at the 11th Singapore-Jiangsu Cooperation Council (SJCC) meeting held in Suzhou in China’s Jiangsu province.
http://www.businesstimes.com.sg/companies-markets/block71-suzhou-opens-to-boost-tech-business-ties-between-singapore-and-china
http://www.straitstimes.com/business/economy/block71-suzhou-opens-to-boost-tech-entrepreneurship-between-singapore-china
http://www.todayonline.com/singapore/nus-launches-block71-hub-suzhou-start-ups

Services rely on growth in manufacturing, but it doesn’t cut both ways
The manufacturing and services sectors have served as the twin engines fuelling Singapore’s economic growth, but the development of the services sector has typically been more reliant on the growth of the manufacturing sector than the other way around. The manufacturing sector creates more jobs and fosters more economic spillovers to the services sector than the converse, said a report by lead economist Kuan Ming Leong from the Ministry of Trade and Industry’s Economics Division.
http://www.businesstimes.com.sg/government-economy/services-rely-on-growth-in-manufacturing-but-it-doesnt-cut-both-ways

Growth of digital sector value-add in Singapore outpaced overall economy from 2011-15
Underpinned by the rising demand for digital goods and services from both individuals and companies, the nominal value-added (VA) of Singapore’s infocomm media (I-CM) sector grew at a compound annual growth rate (CAGR) of 7.2 per cent between 2011 and 2015, outpacing the overall economy.
http://www.businesstimes.com.sg/technology/growth-of-digital-sector-value-add-in-singapore-outpaced-overall-economy-from-2011-15

Singapore consumer prices inch up 0.4% in October
Singapore’s inflation remained muted last month though the cost of some key items – including food, healthcare and education – continued to edge up. The consumer price index – the main measure of inflation – edged up 0.4 per cent in October compared with the same month last year, according to Department of Statistics data released on Thursday.
http://www.businesstimes.com.sg/government-economy/singapore-consumer-prices-inch-up-04-in-october
http://www.straitstimes.com/business/economy/singapore-consumer-prices-edge-up

Singapore consumers show growing preference for global brands over local: Nielsen
Singapore consumers are displaying a growing preference for global brands over locally manufactured products, especially when it comes to baby formula and diapers, but not so much for snacks and instant noodles, according to a survey by market research expert Nielsen. And Singaporeans’ growing hankering for global brands is itself a global trend, said Nielsen.
http://www.businesstimes.com.sg/government-economy/singapore-consumers-show-growing-preference-for-global-brands-over-local-nielsen
http://www.straitstimes.com/business/companies-markets/spore-consumers-prefer-mostly-global-brands-over-local-products-poll

Stronger Singdollar likely on the cards next year
A more robust global economy has given Singapore businesses a much-needed shot in the arm this year, with growth expected to remain robust going into next year. With the pace of economic expansion picking up both here and around the world, some economists are calling for a stronger Singapore currency to guard against rising inflation. The central bank uses the exchange rate as its main monetary policy tool to strike a balance between inflation from overseas and economic growth.
http://www.straitstimes.com/business/economy/stronger-singdollar-likely-on-the-cards-next-year

Singapore’s neighbours are catching up in IPO leaderboard
Singapore is on track to keep its spot at the top of the South-east Asia IPO leaderboard for a second straight year, as the sum of funds raised here looks set to surpass S$4 billion by the year’s end. But the IPO momentum elsewhere in the Asean neighbourhood has also gained pace, making rival stock markets like Thailand and Malaysia more and more attractive.
http://www.businesstimes.com.sg/companies-markets/singapores-neighbours-are-catching-up-in-ipo-leaderboard
http://www.straitstimes.com/business/companies-markets/singapores-neighbours-catching-up-in-ipo-leader-board

Singapore stores go big for Black Friday sales bonanza
Stores are upping the ante for Black Friday, the sales extravaganza that begins today. The yearly US shopping affair has gained traction in Singapore, and both online and bricks-and-mortar stores are pulling out the stops to attract consumers to their offerings.
http://www.straitstimes.com/singapore/singapore-stores-go-big-for-black-friday-sales-bonanza?login=true

Companies’ Brief

Oxley close to buying Chevron House
Oxley Holdings is in the advanced stages of stitching up a deal to buy Chevron House in Raffles Place. The price is believed to be around S$660 million or S$2,526 per square foot on the property’s existing net lettable area (NLA) of 261,280 sq ft. The 32-storey office and retail development is on a 29,891 sq ft site with a 99-year tenure starting from Dec 7, 1989. This leaves 71 years on the clock.
http://www.businesstimes.com.sg/real-estate/oxley-close-to-buying-chevron-house

Yoma counters Myanmar’s headwinds with diverse business, strong governance
Myanmar’s mixed economic outlook and bloated property market weigh on Yoma Strategic Holdings in the short-to-medium term, but the company’s strong governance and ability to execute a diversification strategy suggest that it will be a resilient investment despite the headwinds.
http://www.businesstimes.com.sg/opinion/yoma-counters-myanmars-headwinds-with-diverse-business-strong-governance

Capital World acquires right to develop Johor township for RM63m
Catalist-listed property developer Capital World is acquiring a joint development right to develop a township in Johor for RM63 million (S$20.6 million). Under the joint development right, Capital World will develop five plots of 99-year leasehold lands that will expire on Jan 18, 2114. They have a total area of about 207.5 acres (about 84 hectares), and are owned by Yayasan Pelajaran Johor, an education foundation established by the Johor State Government.
http://www.businesstimes.com.sg/companies-markets/capital-world-acquires-right-to-develop-johor-township-for-rm63m-0

Keppel Land in JV to build two luxury condos in Bangkok’s CBD
Keppel Land Limited, the property arm of Keppel Corporation, has entered into a joint venture with Thai property developer KPN LAND Co Ltd to develop two premium condominium projects in Bangkok’s CBD. It said on Thursday that it has, through its wholly-owned subsidiaries, entered into a conditional joint venture agreement with KPN LAND Co Ltd to acquire two prime sites from KPN LAND and other existing landowners for 2.2 billion baht (S$90 million).
http://www.businesstimes.com.sg/real-estate/keppel-land-in-jv-to-build-two-luxury-condos-in-bangkoks-cbd

Ascendas India Trust in deal to acquire six warehouses for 5.34b rupees
Ascendas India Trust (a-iTrust) has agreed to acquire six warehouses from Arshiya Limited for 5.34 billion rupees (S$112.5 million). In a late night announcement on Thursday, its trustee-manager, Ascendas Property Fund Trustee, said it has signed definitive agreements for this acquisition.
http://www.businesstimes.com.sg/real-estate/ascendas-india-trust-in-deal-to-acquire-six-warehouses-for-534b-rupees

Views, Reviews & Forum

Brighter outlook, but restructuring must continue
Singapore’s economy is finally taking a turn for the better, which is welcome news for companies which have been struggling with slow growth and poor sentiment.
http://www.businesstimes.com.sg/government-economy/brighter-outlook-but-restructuring-must-continue