DAILY NEWS

Daily News – 27 feb 2020 (Thu)

Singapore Real Estate

Co-working operators soldiering on amid virus fears
The Covid-19 outbreak has impacted co-working operators in different ways, with one having closed temporarily while others have suspended community events. At the same time, some are seeing increased demand from companies looking for alternative locations to house employees as part of their business continuity planning (BCP).
https://www.businesstimes.com.sg/real-estate/co-working-operators-soldiering-on-amid-virus-fears

Singapore Economy

S’pore economy expected to shrink 0.6% in Q1: Poll
The effects of the coronavirus outbreak are likely to reverberate beyond China as most major economies in the region are expected to slow down significantly, halt or shrink in the current quarter, Reuters polls of economists found.
https://www.straitstimes.com/business/economy/spore-economy-expected-to-shrink-06-in-q1-poll

Singapore’s January factory jump may prove short-lived
Singapore’s factory output turned in a surprise rise in January on a surge in biomedical manufacturing, even as electronics remained in contraction, according to preliminary figures from the Economic Development Board (EDB) released on Wednesday.
https://www.businesstimes.com.sg/government-economy/singapores-january-factory-jump-may-prove-short-lived
https://www.straitstimes.com/business/economy/factory-output-posts-34-rise-in-january-on-pharma-spike

US firms still have confidence in Singapore as a business hub despite Covid-19
An Online poll among members of the American Chamber of Commerce in Singapore has found that the country’s biggest investors, the US multinational corporations, are impressed with how the Coronavirus outbreak has been handled here.
https://www.businesstimes.com.sg/government-economy/us-firms-still-have-confidence-in-singapore-as-a-business-hub-despite-covid-19
https://www.straitstimes.com/business/us-firms-here-remain-confident-despite-virus-impact

Chan Chun Sing repeats call to landlords, banks to pass on budgetary support
Trade and Industry Minister Chan Chun Sing on Wednesday repeated the government’s call to landlords of commercial buildings, and banks to pass on the Budget 2020 support and reliefs to tenants and small and medium-sized enterprises (SMEs).
https://www.businesstimes.com.sg/government-economy/chan-chun-sing-repeats-call-to-landlords-banks-to-pass-on-budgetary-support

Outbreak adds to push for resilient supply chains: Chan
In its efforts to contain the fallout from the coronavirus outbreak, Singapore is focused not only on mitigating disruption, but also on positioning businesses here for the eventual recovery, Minister for Trade and Industry Chan Chun Sing told business leaders at the launch of the American Chamber of Commerce’s Covid-19 business impact survey yesterday.
https://www.straitstimes.com/business/outbreak-adds-to-push-for-resilient-supply-chains-chan

Companies’ Brief

CapitaLand, SMRT join wage-saving moves
Just days after Singapore state investment firm Temasek announced a wage freeze and voluntary senior management pay cut, property giant CapitaLand and SMRT Corp said they are also slashing wages in the face of the Covid-19 fallout.
https://www.businesstimes.com.sg/companies-markets/capitaland-smrt-join-wage-saving-moves
https://www.straitstimes.com/business/companies-markets/smrt-capitaland-to-cut-salaries-of-top-staff

CapitaLand Q4 profit almost doubles to S$926.6m
CapitaLand posted sparkling fourth-quarter results on Wednesday, with net profit almost doubling to S$926.6 million for the three months ended Dec 31 from S$475.7 million previously. But Asia’s largest diversified real estate group disappointed shareholders with an unchanged dividend of 12 cents per share…
https://www.businesstimes.com.sg/companies-markets/capitaland-q4-profit-almost-doubles-to-s9266m

CapitaLand says traffic at Singapore malls almost back to normal
Customers are once again going shopping, with foot traffic – especially in the suburban malls – almost back to normal, said Lee Chee Koon, CapitaLand group chief executive on Wednesday. It is now about 5 per cent down from before the Covid-19 outbreak, he said at the company’s Q4 results briefing.
https://www.businesstimes.com.sg/companies-markets/capitaland-says-traffic-at-singapore-malls-almost-back-to-normal

CDL Q4 net profit up 12.5% to $87.7m
City Developments (CDL) posted a 12.5 per cent rise in net profit to $87.7 million for the fourth quarter ended Dec 31, up from $77.9 million a year ago. This was due to increased revenue contribution across its core business segments, the property and hotels group said yesterday.
https://www.businesstimes.com.sg/companies-markets/cdl-chairman-optimistic-about-outlook-for-2020
https://www.straitstimes.com/business/companies-markets/cdl-q4-net-profit-up-125-to-877m

CDL mulls Singapore Reit for UK commercial properties
City Developments Ltd (CDL) is exploring the possibility of floating a real estate investment trust (Reit) on the Singapore bourse holding UK commercial properties. This could happen as early as this year. The group currently owns Aldgate House and 125 Old Broad Street in Central London.
https://www.businesstimes.com.sg/companies-markets/cdl-mulls-singapore-reit-for-uk-commercial-properties

Centurion Q4 earnings rise 38% to S$73.1m
Mainboard-Listed Centurion Corporation posted a 38 per cent rise in net profit to S$73.1 million for its fourth quarter ended Dec 31, 2019 from S$53.1 million a year ago. This was mainly due to higher revenue contribution from new accommodation assets added to its portfolio, the student and worker dormitory operator said in a regulatory filing on Wednesday night after market close.
https://www.businesstimes.com.sg/companies-markets/centurion-q4-earnings-rise-38-to-s731m

Frasers Property offers support to Singapore mall tenants
Tenants at 14 malls across Singapore will receive support from Frasers Property Retail (FPR) to tide them over the impact of the novel coronavirus outbreak on their business. They are Causeway Point, Bedok Point, The Centrepoint, Eastpoint Mall, Northpoint City, Waterway Point, Anchorpoint, Century Square, Hougang Mall, Tiong Bahru Plaza, Tampines 1, White Sands, Changi City Point and YewTee Point.
https://www.businesstimes.com.sg/companies-markets/frasers-property-offers-support-to-singapore-mall-tenants
https://www.straitstimes.com/business/frasers-property-rolling-out-support-package-for-mall-tenants

Oxley unit in Cambodia to seek compensation from ex-contractor
Oxley Holdings’ subsidiary, Oxley Gem (Cambodia) Co, is planning to seek compensation from its former contractor Sino Great Wall International Engineering Co (SGW) for damages suffered after repeated breaches of its contract.
https://www.businesstimes.com.sg/companies-markets/oxley-unit-in-cambodia-to-seek-compensation-from-ex-contractor

PropNex Q4 profit more than quadruples on surge in commission income
Real estate agency PropNex on Thursday posted a net profit of S$8.2 million for its fourth quarter ended Dec 31, more than four times the year-ago net profit of S$1.8 million. Earnings per share stood at 2.22 Singapore cents for the quarter, up from 0.49 Singapore cents in the year-ago period.
https://www.businesstimes.com.sg/companies-markets/propnex-q4-profit-more-than-quadruples-on-surge-in-commission-income
https://www.straitstimes.com/business/companies-markets/propnex-q4-profit-more-than-quadruples-on-surge-in-commission-income

SPH acquires six aged care assets in Canada for C$232.9 million
Singapore Press Holdings (SPH) is acquiring six aged care assets in Canada for some C$232.9 million (S$244.5 million), the media and property group said on Wednesday. This is the group’s second investment in the aged care space announced this week.
https://www.businesstimes.com.sg/real-estate/sph-acquires-six-aged-care-assets-in-canada-for-c2329-million
https://www.straitstimes.com/business/companies-markets/sph-buying-six-aged-care-assets-in-canada-for-2445m

Yanlord ups Q4 profit over 8 times to 2.1b yuan
Yanlord Land Group’s net profit for the fourth quarter ended Dec 31, 2019 surged to 2.1 billion yuan (S$417 million), more than eight times the 256.9 million yuan a year ago. This was mainly due to a climb in recognised revenue…
https://www.businesstimes.com.sg/companies-markets/yanlord-ups-q4-profit-over-8-times-to-21b-yuan
https://www.straitstimes.com/business/companies-markets/singapore-stock-watch-wilmar-yanlord-siic-environment-halcyon-agri-gsh

Views, Reviews, Forum & Others

Global effort needed to fight virus
Just as the coronavirus epidemic in China appears to be showing signs of slowing down, its spread to other parts of the world has been escalating, with cases showing up in more than 30 countries now. Major outbreaks are occurring in several countries, including Iran and Italy…
https://www.straitstimes.com/opinion/st-editorial/global-effort-needed-to-fight-virus

Singapore Budget 2020

NTUC to match PMEs to new jobs ahead of displacement
The labour movement is piloting an initiative to match soon-to-be-displaced white-collared workers with new jobs in a bid to minimise the duration of unemployment. The NTUC Job Security Council (JSC) will place professionals, managers and executives (PMEs) into new jobs ahead of displacement, labour chief Ng Chee Meng said during the Budget debate in Parliament on Wednesday.
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/ntuc-to-match-pmes-to-new-jobs-ahead-of-displacement
https://www.straitstimes.com/singapore/new-job-council-aims-to-match-retrenched-pmes-with-vacancies
https://www.straitstimes.com/business/new-council-to-match-the-retrenched-to-new-jobs

No plans to waive foreign worker levy: Josephine Teo
The Singapore government does not plan to waive or reduce foreign worker levies despite calls from business leaders and MPs to do so in an economic environment that has already taken a battering from the coronavirus outbreak, the Republic’s manpower minister said.
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/no-plans-to-waive-foreign-worker-levy-josephine-teo
https://www.straitstimes.com/politics/preserving-local-jobs-a-key-priority-josephine-teo

Call for speedier, extensive aid for firms, staff and the vulnerable
Hastening support for businesses and workers and expanding the coverage for vulnerable groups are among the suggestions made by Members of Parliament to help those hit hard by the coronavirus outbreak cope in the short term.
https://www.straitstimes.com/politics/call-for-speedier-extensive-aid-for-firms-staff-and-the-vulnerable

Relief measures for retail sector do not address structural issues
Relief measures for retailers from the government and landlords are very thoughtful, but do not address the structural issues of e-commerce, high occupancy costs and manpower shortage that continue to plague the retail sector. Deputy Prime Minister Heng Swee Keat at this year’s Budget announced a 15 per cent property tax rebate for commercial properties.
https://www.businesstimes.com.sg/companies-markets/relief-measures-for-retail-sector-do-not-address-structural-issues

Labour MPs say help is at hand on the jobs fron
There were worries that the higher Central Provident Fund (CPF) contribution rates for older workers, meant to start next year, would be cancelled amid economic headwinds. But the subsidies announced in the Budget last week to offset half of the increases for employers show that what the Government has promised will be done, said Senior Minister of State for Defence Heng Chee How yesterday.
https://www.straitstimes.com/politics/labour-mps-say-help-is-at-hand-on-the-jobs-front

A Budget for the times, but a glimpse into a possible future
They are a key focus of a blockbuster $106 billion Budget that has something for everyone; a Budget whose approach and coverage is hard to quarrel with. With every tool at the Government’s disposal jam-packed into Deputy Prime Minister Heng Swee Keat’s speech last week – rebates, reliefs, grants, cash top-ups – MPs on both sides of the political aisle yesterday turned a clinical eye to technical gaps, debating the quantum of support, mechanics of implementation, and timing.
https://www.straitstimes.com/politics/a-budget-for-the-times-but-a-glimpse-into-a-possible-future