DAILY NEWS

Daily News – 1 Sep 2020 (Tue)

Singapore Real Estate

Two-storey factory in Tuas for sale with S$8m guide price
A two-storey JTC factory at 33 Tuas Basin Link Road is up for sale by expression of interest with a guide price of S$8 million, exclusive marketing agent Knight Frank Singapore said on Monday. Under the Urban Redevelopment Authority’s Master Plan 2019, the site is zoned B2 with a maximum allowable plot ratio of 1.4.
https://www.businesstimes.com.sg/real-estate/two-storey-factory-in-tuas-for-sale-with-s8m-guide-price

Look beyond housing value when means-testing for aid, say MPs
Some Singaporeans living in private estates or bigger homes may be severely affected by the Covid-19 crisis, but are unable to qualify for certain support schemes as eligibility is pegged to the annual value of the homes they live in. On Monday, three MPs urged the government to review this criteria of means-testing Singaporeans for financial aid, to ensure these people are not left out inadvertently.
https://www.businesstimes.com.sg/real-estate/look-beyond-housing-value-when-means-testing-for-aid-say-mps

Hotel, commercial use groups see biggest chops in DC rates
Hotels and commercial property, which have received the biggest drubbing from the Covid-19 pandemic, are the use groups with the largest cuts in development charge (DC) rates for the next half-year period. DC rates for the non-landed residential and industrial use groups – property market segments that have been relatively less scathed by the virus outbreak, saw more modest declines in the latest revision of DC rates unveiled on Monday evening.
https://www.businesstimes.com.sg/real-estate/hotel-commercial-use-groups-see-biggest-chops-in-dc-rates
https://www.straitstimes.com/business/property/development-charges-cut-for-commercial-and-hotel-use

Real estate dynamics changing as e-commerce booms
E-commerce has boomed in recent months as a result of strict Covid-19 measures such as safe distancing, which have kept some consumers away from physical retail shops. That trend is also changing supply and demand dynamics in real estate, as a new study has shown.
https://www.businesstimes.com.sg/sme/real-estate-dynamics-changing-as-e-commerce-booms

E-commerce drives demand for data centres, logistics assets
The rise of e-commerce amid the Covid-19 pandemic is impacting dynamics in the real estate sector, as it drives up demand for data centres and logistics and fulfilment centres over retail spaces like shopping malls, according to research published on Tuesday by capital markets platform iSTOX and research firm Zero One.
https://www.businesstimes.com.sg/sme/e-commerce-drives-demand-for-data-centres-logistics-assets

Singapore Economy

A job offers best welfare, but there’s need to adapt social safety nets: DPM
The government “will keep an open mind” to various ideas for strengthening Singapore’s safety nets, such as a minimum wage, universal basic income, and unemployment insurance, said Deputy Prime Minister and Finance Minister Heng Swee Keat in Parliament on Monday. But it will do so while considering the trade-offs, and staying true to principles such as not creating dependency, he added.
https://www.businesstimes.com.sg/government-economy/a-job-offers-best-welfare-but-theres-need-to-adapt-social-safety-nets-dpm
https://www.straitstimes.com/politics/debate-kicks-off-with-focus-on-spore-core-and-values
https://www.straitstimes.com/politics/singapore-must-hold-true-to-values-as-it-adapts-heng
https://www.straitstimes.com/politics/four-areas-to-beef-up-to-emerge-stronger
https://www.straitstimes.com/opinion/dpm-heng-spore-must-adapt-to-change-but-stay-true-to-its-values-0

Singapore businesses alarmed by growing protectionist calls
Businesses are growing wary of what may seem like protectionist suggestions to keep the Singaporean core in professionals, managers and executives (PMEs) jobs, which some say could backfire in the broader scheme of things. On Monday, Member of Parliament Patrick Tay called for the minimum qualifying salary for Employment Pass (EP) holders in the infocomm technology (ICT) and professional services sectors to be raised further, similar to the move made for the finance sector last week.
https://www.businesstimes.com.sg/government-economy/singapore-businesses-alarmed-by-growing-protectionist-calls
https://www.businesstimes.com.sg/government-economy/have-sector-specific-ep-salaries-and-stricter-penalties-to-ensure-fair
https://www.straitstimes.com/politics/call-to-raise-salary-bar-for-foreigners-in-two-industries

Singapore aims to deepen finance, aviation ties with Guangdong
Singapore aims to deepen collaboration with China’s Guangdong province in several key areas, including in financial services, talent exchange and aviation. At the Singapore-Guangdong Collaboration Council on Monday, both sides pledged to work together to strengthen economic relations. Singapore firms and their partners signed 15 agreements at the annual meeting, which was conducted by video-conference this year.
https://www.businesstimes.com.sg/government-economy/singapore-aims-to-deepen-finance-aviation-ties-with-guangdong
https://www.straitstimes.com/singapore/singapore-eyes-closer-tie-ups-with-guangdong-in-finance-talent-aviation

70% of firms think they can ride out next 12 months: SBF poll
More than three in five businesses (62 per cent) see the prevailing dicey business condition persisting, with economic activities continuing at the present pace for the next 12 months, according to a survey of 225 firms in Singapore. But most – 70 per cent – of the firms polled say they can still keep business going with thinner profit margins or small operating losses.
https://www.businesstimes.com.sg/government-economy/70-of-firms-think-they-can-ride-out-next-12-months-sbf-poll
https://www.straitstimes.com/business/economy/most-firms-will-stay-in-business-but-1-in-5-may-cut-staff-survey

Firms not allowed to wantonly discriminate against Singaporeans
In the current difficult economic climate, it is all the more important that Singaporeans are given fair opportunities to find meaningful work. Companies will not be allowed to practise wanton discrimination against local workers, Second Minister for Manpower Tan See Leng said yesterday.
https://www.straitstimes.com/politics/firms-not-allowed-to-wantonly-discriminate-against-singaporeans

Retain citizens over foreigners if retrenching: Gan Siow Huang
Employers should view Singaporeans favourably when hiring and retain citizens over foreigners if retrenchment cannot be avoided, said Minister of State for Manpower and Education Gan Siow Huang. Having a strong Singaporean presence in a company also enhances the resilience of the business in times when border controls can have an impact on the supply of foreign workers, she added.
https://www.straitstimes.com/politics/retain-citizens-over-foreigners-if-retrenching-gan-siow-huang

Companies’ Brief

SP Group partners CapitaLand JV to develop energy-saving solutions in China
National power grid operator SP Group and Sino-Singapore Guangzhou Knowledge City Investment and Development Co (GKC) will develop district cooling, heating and integrated energy solutions in China. These will help GKC’s greenfield master development, the China-Singapore Guangzhou Knowledge City (CSGKC), achieve energy savings.
https://www.businesstimes.com.sg/real-estate/sp-group-partners-capitaland-jv-to-develop-energy-saving-solutions-in-china

Keppel associate Floatel in talks to extend lapsed debt-payment agreement
The forbearance agreement between Floatel International and an ad-hoc committee (AHC) of holders of its US$400 million senior secured, first-lien 9 per cent bonds has been extended again, this time to Sept 15, from Aug 31. The AHC holds more than 56 per cent of the Oslo-listed bonds’ outstanding amount.
https://www.businesstimes.com.sg/companies-markets/keppel-associate-floatel-in-talks-to-extend-lapsed-debt-payment-agreement
https://www.straitstimes.com/business/companies-markets/keppel-associate-floatel-in-talks-to-extend-lapsed-debt-payment-agreement

Keppel Land and TVS Emerald to develop premium condo in Chennai
Keppel Corp said on Monday that Keppel Land has entered into a joint venture with leading Indian developer Emerald Haven Realty (TVS Emerald), a TVS Group company, to jointly develop a freehold condominium project on a prime 2.4 hectare site in south Chennai, India.
https://www.businesstimes.com.sg/companies-markets/keppel-land-and-tvs-emerald-to-develop-premium-condo-in-chennai

DBS: Suburban malls ‘safer bet’ than Orchard Rd malls
DBS Group Research on Monday called malls with suburban characteristics a “safer bet” when compared to tourist-focused Orchard Road malls – which will likely lag and not return to optimal capacity given the lack of tourists in the near term.
https://www.businesstimes.com.sg/companies-markets/dbs-suburban-malls-safer-bet-than-orchard-rd-malls

Elite Partners acquires Poland warehouse for more than 30m euros from GIC unit
A fund of private equity firm Elite Partners Capital has acquired a warehouse in Mszczonow, Poland for more than 30 million euros (S$48.6 million) from P3 Logistics Park, a wholly-owned subsidiary of Singapore sovereign wealth fund GIC.
https://www.businesstimes.com.sg/real-estate/elite-partners-acquires-poland-warehouse-for-more-than-30m-euros-from-gic-unit-0

Views, Reviews, Forum & Others

How safe is your online shopping?
People have become desensitised to storage of payment details by online merchants, whose security is likely inferior to that of financial institutions.
https://www.businesstimes.com.sg/opinion/how-safe-is-your-online-shopping

Singapore banks’ weak operating environment weighing on ratings: Fitch
Singapore banks’ capital ratios should be sustained at around 14 per cent over the next few years, or they risk triggering a rating downgrade, warned Fitch Ratings. This comes as deteriorating asset quality and profitability is likely to put downward pressure on capital ratios at a time when there is “limited rating headroom”, the credit ratings agency said in a report on Sunday.
https://www.businesstimes.com.sg/companies-markets/singapore-banks-weak-operating-environment-weighing-on-ratings-fitch
https://www.straitstimes.com/business/banking/spore-banks-ratings-at-risk-over-capital-ratios-fitch

Update on COVID-19 (Coronavirus Disease 2019) Situation

Singaporeans should not let guard down against coronavirus: Experts
As the authorities investigate whether safe distancing rules were breached leading to a family cluster of Covid-19 cases, experts warned that people should not let their guard down against the virus as Singapore continues to reopen. The country is still not out of the woods at least until a viable vaccine reaches the market, they said.
https://www.straitstimes.com/singapore/sporeans-should-not-let-guard-down-against-virus-experts

Coronavirus: Recent family cluster shows need to abide by safe practices, say experts
A recent family cluster of five Covid-19 cases from two households is a sign that it is still critical for Singaporeans to continue safe practices, at least until there is a viable vaccine, experts cautioned. The Health Ministry said on Sunday (Aug 30) it is investigating if there were any breaches in safe distancing rules that led to the family cluster.
https://www.straitstimes.com/singapore/recent-family-cluster-shows-need-to-abide-by-safe-practices-experts
*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation