DAILY NEWS

Daily News – 13th November 2018 (Tues)

Top Stories

Singapore, China deepen ties with upgraded FTA, other pacts
Singapore and China deepened bilateral relations further on Monday with several agreements signed in the city-state, including an upgraded free trade agreement between the two countries that would allow Singapore businesses better market access into the world’s second-largest economy.
https://www.businesstimes.com.sg/government-economy/singapore-china-deepen-ties-with-upgraded-fta-other-pacts
https://www.businesstimes.com.sg/government-economy/china-singapore-deepen-bilateral-relations-with-slew-of-agreements-signed
https://www.straitstimes.com/singapore/singapore-and-china-sign-mou-to-upgrade-fta-as-premier-li-keqiang-kicks-off-official-visit
https://www.channelnewsasia.com/news/asia/singapore-china-sign-free-trade-agreement-upgrade-10922790
https://www.todayonline.com/singapore/better-access-spore-firms-chinas-legal-shipping-construction-sectors-under-expanded-free

Businesses must do their part for greater Asean integration: PM Lee
Being beneficiaries of Asean integration and openness, Asean businesses should get used to and embrace more competition in their home markets for greater access to other Asean countries in return, Prime Minister Lee Hsien Loong said on Monday.
https://www.businesstimes.com.sg/government-economy/businesses-must-do-their-part-for-greater-asean-integration-pm-lee
https://www.channelnewsasia.com/news/singapore/businesses-need-to-accept-more-competition-in-home-markets-in-10920346

Asean on track to realise 2025 vision of free and open trade
Three agreements sewn up on Monday were billed as part of Asean’s growing economic integration and the bloc’s commitment to free, open trade, en route to its plan for 2025. The South-east Asian body must forge ahead with its 2025 vision for the Asean Economic Community (AEC), said Minister for Trade and Industry Chan Chun Sing, as he opened the AEC Council’s afternoon meeting.
https://www.businesstimes.com.sg/government-economy/asean-on-track-to-realise-2025-vision-of-free-and-open-trade

Asean must press on for 2025 vision, Chan Chun Sing tells Asean Economic Community Council
Asean has made “significant strides” in regional integration, but must press on towards its plan for 2025, Minister for Trade and Industry Chan Chun Sing said at a gathering of his peers. In opening remarks at the Asean Economic Community (AEC) Council’s meeting on Monday afternoon, Mr Chan said that the bloc remains committed to deepening regional economic integration through its AEC Blueprint 2025 vision.
https://www.businesstimes.com.sg/government-economy/asean-must-press-on-for-2025-vision-chan-chun-sing-tells-asean-economic-community
https://www.channelnewsasia.com/news/singapore/asean-must-press-on-with-integration-chan-chun-sing-10922306

E-commerce pact aims to lower costs, protect consumers
From Cambodian craftsmen to Indonesian sambal sellers, small and medium-sized entrepreneurs across South-east Asia will be able to tap with greater confidence the region’s burgeoning e-commerce market in search of new customers. And companies peddling their goods and services online may no longer have to navigate varying regulatory hurdles when selling across the region’s borders.
https://www.straitstimes.com/singapore/e-commerce-pact-aims-to-lower-costs-protect-consumers
https://www.channelnewsasia.com/news/business/asean-economic-ministers-ink-first-e-commerce-agreement-10920610

Smarter transportation critical for Emerging Asia’s growth
The gross domestic product in Asean is estimated to grow by an annual average of 5.2 per cent in 2019 to 2023, on a par with the average of 5.1 per cent seen from 2012 to 2016, said the OECD Development Centre in a report launched on Monday.
https://www.businesstimes.com.sg/government-economy/smarter-transportation-critical-for-emerging-asias-growth

PM Lee, Mahathir reaffirm strong ties between Singapore and Malaysia
Prime Minister Lee Hsien Loong and Malaysian Prime Minister Mahathir Mohamad reaffirmed the strong ties between Singapore and Malaysia on Monday. At the start of an official lunch at the Istana, Mr Lee said that while this was Dr Mahathir’s first official visit to Singapore as the seventh prime minister of Malaysia, he is very familiar with the Republic, having visited many times and collaborated on bilateral projects such as the Linggiu Dam in Johor and the Second Link in Tuas. “Malaysia is Singapore’s closest neighbour and vice versa. We are bound by geography and history. Our economies are extensively intertwined.”
https://www.businesstimes.com.sg/government-economy/pm-lee-mahathir-reaffirm-strong-ties-between-singapore-and-malaysia
https://www.channelnewsasia.com/news/singapore/mahathir-lee-hsien-loong-malaysia-visit-istana-10921388
https://www.channelnewsasia.com/news/singapore/singapore-malaysia-water-price-1962-agreement-10923464

Turning challenges into opportunities
Singapore is honoured to chair the Association of Southeast Asian Nations (ASEAN) this year. As we open a new chapter and chart the way forward for ASEAN, which turned 50 last year, we also have to adapt the grouping to a rapidly changing and increasingly complex geopolitical landscape.
https://www.businesstimes.com.sg/hub/asean-singapore-2018/turning-challenges-into-opportunities

Singapore Real Estate

Singapore retail sales inch up in September after two months of decline
Singapore retail sales finally returned to expansionary territory in September after two consecutive months of decline, according to the latest figures released by the Department of Statistics on Monday. Sales takings went up 1.9 per cent year on year to S$3.6 billion, compared to a 0.4 per cent dip in August. Online retail sales made up an estimated 4.9 per cent. Despite the uptick, it still came in below economists’ expectations of a 2.1 per cent growth.
https://www.businesstimes.com.sg/government-economy/singapore-retail-sales-inch-up-in-september-after-two-months-of-decline
https://www.businesstimes.com.sg/infographics/retail-sales-inch-up-in-sept-after-two-months-of-decline
https://www.straitstimes.com/business/economy/retail-sales-rebound-in-sept-up-19-on-growth-in-car-segment
https://www.straitstimes.com/business/economy/retail-sales-edge-up-19-in-september-after-falling-for-previous-two-months
https://www.channelnewsasia.com/news/singapore/retail-sales-in-september-rose-1-9-10921376

Singapore retailers see brisk sales on Singles’ Day
The tills were ringing long and loud on Sunday (Nov 11) as retailers here raked in more sales from the annual Singles’ Day shopping extravaganza. Transaction numbers surged 279 per cent over last year, according to advertising platform Criteo.
https://www.straitstimes.com/business/singapore-retailers-see-brisk-sales-on-singles-day
https://www.straitstimes.com/singapore/singapore-retailers-see-singles-day-sales-spike

CapitaLand wins bid for prime Guangzhou site while expanding footprint
CapitaLand has won a prime mixed-use, 4.7 hectare site in Guangzhou, China, for 882 million yuan (about S$175 million) as it continues to expand its footprint in Guangzhou. The property developer holds a 75 per cent stake in the development, with the remainder held by an unrelated third party.
https://www.businesstimes.com.sg/real-estate/capitaland-wins-bid-for-prime-guangzhou-site-while-expanding-footprint
https://www.businesstimes.com.sg/companies-markets/capitaland-lands-bid-for-site-in-guangzhou-for-882m-yuan

Mandarin Gardens raises en bloc asking price to S$2.79b
If the owners of the Mandarin Gardens condominium have their way, the 99-year leasehold development in East Coast Road could be sold for a new record price of S$2.79 billion. This is 12.5 per cent more than the original asking price of S$2.48 billion, and higher than the previous mark set by Pandan Valley’s S$2.6 billion, according to a report published by TODAY on Sunday.
https://www.businesstimes.com.sg/real-estate/mandarin-gardens-raises-en-bloc-asking-price-to-s279b
https://www.todayonline.com/singapore/mandarin-gardens-goes-new-record-upping-en-bloc-asking-price-s2788-billion

Pagoda Street shophouses go on the market
JLL, as the appointed exclusive marketing agent, is calling for offers to buy two prime three-storey conservation shophouses in Singapore’s historic Chinatown district. The properties are a freehold and a 99-year leasehold property located at 31 and 76 Pagoda Street respectively.
https://www.businesstimes.com.sg/real-estate/pagoda-street-shophouses-go-on-the-market
https://www.businesstimes.com.sg/real-estate/two-chinatown-shophouses-up-for-sale-with-guide-price-around-s328m
https://www.straitstimes.com/business/property/2-chinatown-shophouses-on-sale-for-around-328m
https://www.straitstimes.com/business/property/two-prime-fb-chinatown-shophouses-in-pagoda-street-on-sale-for-around-328m

Companies’ Brief

GIC, CPF, Temasek among Asia’s top 10 asset owners
Asia-Pacific assets comprise more than a third of the discretionary funds under management of the world’s 100 largest asset owners, a report by Willis Towers Watson’s Thinking Ahead Institute has found. Discretionary assets of the top 100 asset owners came to US$19 trillion out of an estimated total US$55 trillion.
https://www.businesstimes.com.sg/banking-finance/gic-cpf-temasek-among-asias-top-10-asset-owners

CapitaLand teams up with GIC to buy Shanghai’s tallest twin towers for 12.8b yuan
CapitaLand, through an investment fund, is teaming up with GIC to acquire Shanghai’s tallest twin towers for 12.8 billion yuan (about S$2.54 billion). This property will become CapitaLand’s third Raffles City integrated development in Shanghai, and also its ninth in China and 10th globally.
https://www.businesstimes.com.sg/companies-markets/capitaland-teams-up-with-gic-to-buy-shanghai%E2%80%99s-tallest-twin-towers-for-128b-yuan
https://www.straitstimes.com/business/companies-markets/capitaland-gic-in-5050-tie-up-to-buy-shanghais-tallest-twin-towers-for

Oxley Holdings posts lower net profit for Q1 FY19
Developer Oxley Holdings’ first-quarter net profit sank 83 per cent year on year to S$8.06 million. Revenue was 45 per cent lower at S$170.3 million due to softer revenue contributions from projects in the United Kingdom and Singapore. Earnings per share for the three months ended Sept 30 fell to 0.2 Singapore cent, down from 1.26 cents previously.
https://www.businesstimes.com.sg/companies-markets/oxley-holdings-posts-lower-net-profit-for-q1-fy19

Sinarmas Land’s Q3 profit falls 25.7%
Lower revenue, higher finance cost, and a weakening of the Indonesia rupiah dampened results for Indonesian property developer Sinarmas Land (SML) in its third quarter. For the three months ended Sept 30, the group posted a 25.7 per cent drop in net profit to S$12.4 million, down from S$16.7 million a year earlier. Earnings per share (EPS) was 0.29 Singapore cent, versus 0.39 Singapore cent in the preceding year. No dividend has been declared. Revenue for the quarter rose 0.2 per cent to S$203.7 million.
https://www.businesstimes.com.sg/companies-markets/sinarmas-lands-q3-profit-falls-257

Thomson Medical Group proposes to spin off property businesses
Main-board listed Thomson Medical Group unveiled a proposal before trading opened on Monday, to spin off its real estate business to existing shareholders via a distribution in specie by way of capital reduction. It added that its real estate business – comprising both the design and engineering, and hospitality businesses – will be restructured under its current subsidiary, RSP Holdings.
https://www.businesstimes.com.sg/real-estate/thomson-medical-group-proposes-to-spin-off-property-businesses
https://www.businesstimes.com.sg/companies-markets/thomson-medical-seeks-to-spin-off-property-businesses
https://www.straitstimes.com/business/companies-markets/thomson-medical-seeks-to-spin-off-property-businesses

Sasseur Reit Q3 DPU 4.5% higher than forecast at 1.542 S cents
Real estate investment trust Sasseur Reit on Monday announced a distribution per unit (DPU) of 1.542 Singapore cents for the third quarter ended Sept 30. DPU for the Reit, which listed on the Singapore Exchange mainboard in March, was 4.5 per cent higher than the 1.476 Singapore cents forecast in its prospectus. Distributable income to unitholders of S$18.2 million was also 4.5 per cent higher than the S$17.4 million forecast.
https://www.businesstimes.com.sg/companies-markets/sasseur-reit-q3-dpu-45-higher-than-forecast-at-1542-s-cents
https://www.straitstimes.com/business/companies-markets/sasseur-reit-q3-dpu-45-higher-than-forecast-at-1542-s-cents

Centurion Corp reports Q3 profit of S$7.32m
Centurion Corporation’s third-quarter net profit was 21 per cent higher year on year at S$7.32 million. The corresponding quarter a year ago recorded losses of S$1.48 million on investment properties and assets held for sale. There were no such losses in the current quarter.
https://www.businesstimes.com.sg/companies-markets/centurion-corp-reports-q3-profit-of-s732m

Boustead Singapore Q2 FY19 profit down 3%
Boustead Singapore’s net profit for the second quarter ended Sept 30 slid 3 per cent year-on-year to S$6.89 million. Revenue was 13 per cent higher at S$118.36 million, while earnings per share were the same at 1.4 Singapore cents.
https://www.businesstimes.com.sg/companies-markets/boustead-singapore-q2-fy19-profit-down-3

Metro in the black in Q2 FY19
Metro Holdings swung into the black with a net profit of S$12.81 million for the second quarter ended Sept 30, versus a net loss of S$13.75 million a year ago. Revenue was around 53 per cent higher at S$46.33 million on the back of higher venue from its retail business, and S$13.95 million in revenue from the sale of property rights of residential development properties in Bekasi, Jakarta.
https://www.businesstimes.com.sg/companies-markets/metro-in-the-black-in-q2-fy19

Views, Reviews, Forum & Others

New guardrail system being tested to improve road safety
A stretch of yellow-barreled rails over 20m in length was recently installed along the road shoulder of the slip road leading to the start of the Bukit Timah Expressway (BKE) towards Woodlands. The rails resemble the rolling barrier system, a road safety feature, seen in several countries including Malaysia, Australia and the United States.
https://www.straitstimes.com/singapore/new-guardrail-system-being-tested-to-improve-road-safety

Johor mega projects in 2019 to include new airport, bridge to Singapore: Chief Minister
The Johor state government has identified several mega projects to be implemented next year, including the construction of an airport in Mersing and part of a bridge linking Johor Bahru and Singapore. “The bridge could be crooked or straight, but it would be a reality,” said Johor Chief Minister Osman Sapian on Monday (Nov 12).
https://www.channelnewsasia.com/news/asia/johor-crooked-bridge-causeway-mega-projects-mersing-airport-10923160

More work needed in regulations, industry to grab blockchain opportunities: panel
Blockchain is no longer just a hype. There are real opportunities in using the technology for the economy, but regulators need to work with each other and the industry to support its growth, said international panellists during discussions at the Singapore Fintech Festival on Monday.
https://www.businesstimes.com.sg/banking-finance/more-work-needed-in-regulations-industry-to-grab-blockchain-opportunities-panel

MAS sets out principles to guide use of artificial intelligence, data analytics in finance
The Monetary Authority of Singapore (MAS) has issued a set of principles to promote fairness, ethics, accountability and transparency (FEAT) in the use of artificial intelligence (AI) and data analytics in finance. Known as the FEAT Principles, the document provides guidance to firms offering financial products and services on the responsible use of AI and data analytics, to strengthen internal governance around data management and use.
https://www.businesstimes.com.sg/banking-finance/mas-sets-out-principles-to-guide-use-of-artificial-intelligence-data-analytics-in
https://www.straitstimes.com/business/banking/mas-issues-principles-to-guide-use-of-artificial-intelligence-data-analytics-in

Curbing free flow of data poses serious risk: MAS chief
Laws that restrict the flow of data are a concern worldwide, not just with regulators but also with those in the growing digital economy, like local fintech entrepreneur Wong Hong Ting. Without the freedom for data to move across borders, data-driven companies like his artificial intelligence firm Botbot.ai will face far greater technical challenges, said Mr Wong at the five-day Singapore FinTech Festival yesterday.
https://www.straitstimes.com/business/curbing-free-flow-of-data-poses-serious-risk-mas-chief

Asean Smart Cities Initiative will benefit region’s big and small players
As has always been the case, this week’s Asean summit will be a hectic week for the 10-member organisation, with an agenda-filled week focusing on everything from cybersecurity to trade, and more.
https://www.businesstimes.com.sg/opinion/asean-smart-cities-initiative-will-benefit-regions-big-and-small-players

S-E Asia’s imminent Fintech boom needs a robust IT and data centre support infrastructure
Cashless payment options and e-wallets seem to have proliferated every part of our lives these days – from paying for ride-hailing rides to online shopping, buying groceries, watching movies and even getting food at the local hawker centre. The convenience of paying with a quick swipe of our fingers seems to have made a large number of us converts to these new modes of payment.
https://www.businesstimes.com.sg/opinion/s-e-asias-imminent-fintech-boom-needs-a-robust-it-and-data-centre-support-infrastructure

What can be done to make Singapore buildings more green?
The Building & Construction Authority (BCA) launched the BCA Green Mark Scheme in 2005 to encourage building owners to adopt environmentally sustainable practices. The BCA has set a target for 80 per cent of all buildings to be certified by 2030.
https://www.todayonline.com/commentary/what-more-can-be-done-make-singapore-buildings-more-green