DAILY NEWS

Daily News – 11th September 2018

Top Story

A decade on, Great Recession’s ghost still haunting markets
A decade after Lehman Brothers’ 2008 bankruptcy, the fallout from the Great Recession continues to threaten today’s financial markets. Inflated asset prices, excessive borrowing and the threat of the unknown as central banks unwind their crisis-era policies are among the biggest concerns that analysts and fund managers shared with The Business Times.
https://www.businesstimes.com.sg/banking-finance/a-decade-on-great-recessions-ghost-still-haunting-markets
https://www.businesstimes.com.sg/banking-finance/10-years-after-lehman/in-face-of-crisiss-twists-old-principles-guide-new-solutions

Singapore Economy

ASME launches software for SMEs
Small and medium enterprises (SMEs) can tap a new cloud-based software platform for their accounting, human resource (HR) and compliance needs. The SME Cloud Exchange Network Software (SMECEN) is an integrated suite of solutions, offered on a software-as-a-service basis.
https://www.businesstimes.com.sg/government-economy/asme-launches-software-for-smes

Bill tabled to integrate insolvency, bankrupty and debt revamp laws
An omnibus Bill that consolidates personal and corporate insolvency and debt restructuring laws into a single piece of legislation was tabled for first reading in Parliament on Monday.
https://www.businesstimes.com.sg/government-economy/bill-tabled-to-integrate-insolvency-bankrupty-and-debt-revamp-laws
https://www.businesstimes.com.sg/government-economy/parliament-singapore-introduces-omnibus-bill-to-update-insolvency-debt

Wider upgrading on horizon while Vers details are ironed out
Even as anticipation over the Voluntary Early Redevelopment Scheme (Vers) builds up, National Development Minister Lawrence Wong has urged patience about the details, noting that the more immediate policy to watch is an expanded upgrading programme.
https://www.straitstimes.com/politics/wider-upgrading-on-horizon-while-vers-details-are-ironed-out

How S’pore can prepare for next global financial crisis
A decade after the bankruptcy of US investment bank Lehman Brothers triggered the global financial crisis, Finance Minister Heng Swee Keat says another crisis is unavoidable. Whenever that happens, Singapore’s ability to meet the new challenge will hinge on its capability to understand the impact of ultra-accommodative central bank policies, adapt to structural changes in the global economy and maintain a disciplined central bank, he said.
https://www.straitstimes.com/business/economy/how-spore-can-prepare-for-next-global-financial-crisis

PM Lee to speak at WEF on how Asean has harnessed tech
Prime Minister Lee Hsien Loong arrives in Hanoi today to attend the World Economic Forum (WEF) on Asean. He will speak at the opening plenary on how Asean has harnessed the technologies of the Fourth Industrial Revolution to better position the region for the future economy. Singapore is Asean chair this year.
https://www.straitstimes.com/singapore/pm-lee-to-speak-at-wef-on-how-asean-has-harnessed-tech
https://www.todayonline.com/singapore/pm-lee-attend-regional-leaders-gathering-innovation

Singapore Real Estate

Private developers not ruled out for Vers: Lawrence Wong
Private developers may have a role in redeveloping ageing HDB flats as the government studies how best to implement a new scheme for such homes. On Monday, National Development Minister Lawrence Wong said in parliament that he “will not rule (private developers) out” and would carefully study the suggestion made earlier by Fengshan MP Cheryl Chan.
https://www.businesstimes.com.sg/government-economy/private-developers-not-ruled-out-for-vers-lawrence-wong
https://www.businesstimes.com.sg/real-estate/parliament-private-developers-may-have-role-in-vers-scheme-for-hdb-flats
https://www.straitstimes.com/singapore/housing/private-developers-may-have-role-in-redeveloping-older-flats
https://www.channelnewsasia.com/news/singapore/vers-government-will-not-rule-out-role-of-private-developers-10701518
https://www.todayonline.com/singapore/private-developers-may-be-involved-vers-scheme-lawrence-wong

Billion-dollar sites not giving up on en bloc dreams
Despite fears that the latest cooling measures could sound the death knell for mega en bloc sites, billion-dollar projects are pressing on with their collective sale plans. Laguna Park – a sprawling 669,486 sq ft East Coast development – is launching its tender sale on Sept 18 at a reserve price of S$1.48 billion.
https://www.businesstimes.com.sg/real-estate/billion-dollar-sites-not-giving-up-on-en-bloc-dreams-0

Singapore’s small builders seen facing debt troubles amid curbs
Singapore’s small construction firms are likely to face more difficulties repaying debt as a clampdown on property speculation worsens their already tight liquidity. The island’s economy grew at a slower pace in the second quarter than initially projected as construction plunged. Singapore increased stamp duties for developers in July, and also tightened borrowing limits for individuals taking up their first housing loan, after property prices jumped this year.
https://www.businesstimes.com.sg/real-estate/singapores-small-builders-seen-facing-debt-troubles-amid-curbs
https://www.straitstimes.com/business/companies-markets/singapores-small-construction-firms-seen-facing-debt-problems-amid

East Court seeks S$19m in en bloc tender
East Court is the latest development here to go en bloc. The eight-unit, 13,351 sq ft development in Koon Seng Road, near Dunman Road, was put on the market for S$19 million on Monday. Owners could stand to get S$2.375 million a unit, should the sale go through at that price.
https://www.businesstimes.com.sg/real-estate/east-court-seeks-s19m-in-en-bloc-tender

Pandan Valley eyes record $2.6b in bid to sell en bloc
The sprawling Pandan Valley estate – one of the first condominiums to be built here – is aiming for a collective sale with a record-breaking price tag of $2.6 billion, sources close to the deal told The Straits Times. If the 623-unit freehold development on the expansive 865,000 sq ft site pulls off the sale, it would be the biggest collective sale transaction in dollar terms struck here. Pandan Valley, which was built in the late 1970s, last tried for a collective sale deal in 2011, but it did not succeed.
https://www.straitstimes.com/business/property/pandan-valley-eyes-record-26b-in-bid-to-sell-en-bloc
https://www.todayonline.com/singapore/new-collective-sale-record-pandan-valleys-asking-price-s26-billion

OUE C-Reit to buy OUE Downtown’s offices for S$908m; plans 83-for-100 rights issue at S$0.456 per rights unit
OUE Commercial Real Estate Investment Trust (C-Reit) has agreed to buy the office components of the OUE Downtown development from sponsor OUE for S$908 million, according to exchange filings early Tuesday.
https://www.businesstimes.com.sg/companies-markets/oue-c-reit-to-buy-oue-downtowns-offices-for-s908m-plans-83-for-100-rights-issue-at
https://www.straitstimes.com/business/companies-markets/oue-c-reit-to-buy-oue-downtowns-offices-for-908m-plans-83-for-100-rights

SPH buying UK student housing portfolio for £180.5m
Singapore Press Holdings (SPH) has acquired a portfolio of 14 purpose-built student accommodation buildings across six towns and cities in the United Kingdom for about £180.5 million (S$321 million) cash, it announced early on Monday morning.
https://www.businesstimes.com.sg/companies-markets/sph-buying-uk-student-housing-portfolio-for-%C2%A31805m
https://www.straitstimes.com/business/companies-markets/sph-acquires-uk-student-accommodation-portfolio-for-321m

Some corporates ditch offices for co-working spaces
When job search engine Indeed opened a product development centre in Singapore at the start of this year with just one staff member, it decided to secure co-working space for up to 15 people. In June, it upgraded to a office suite for up to 50 people, and by November, it is looking to move to an even bigger dedicated office space for 150 staff — all within the co-working space at WeWork’s Beach Centre.
https://www.todayonline.com/singapore/some-corporates-ditch-offices-co-working-spaces

Companies’ Brief

Keppel and Salim Group to develop and operate data centre in Indonesia
Mainboard-listed Keppel Corporation said Monday that it had entered into conditional agreements with Indonesian conglomerate the Salim Group to jointly develop and operate a high-availability data centre in Bogor near Jakarta.
https://www.businesstimes.com.sg/companies-markets/keppel-and-salim-group-to-develop-and-operate-data-centre-in-indonesia
https://www.straitstimes.com/business/companies-markets/keppel-salim-group-to-jointly-develop-data-centre

Centurion unit buys South Korea’s Benikea Hotel for S$16.6m
Centurion Corporation, which owns and manages workers accommodation facilities as well as student housing assets, on Monday said that it would buy South Korea’s Benikea Hotel for S$16.6 million and refurbish it for use as student accommodation.
https://www.businesstimes.com.sg/companies-markets/centurion-unit-buys-south-koreas-benikea-hotel-for-s166m

Crane rental firm MS Holdings plans diversification into South Korean integrated resorts construction
Crane rental firm MS Holdings on Monday said that it plans to explore a “strategic cooperation” with LongRunn International Group, a builder of integrated resorts in Asia, in acquiring a land parcel in the Incheon Free Economic Zone of South Korea.
https://www.businesstimes.com.sg/companies-markets/crane-rental-firm-ms-holdings-plans-diversification-into-south-korean-integrated

Wu Pao Chun outlet to open in S’pore next year
The BreadTalk Group expects to open the first Wu Pao Chun bakery in Singapore in Capitol Piazza next year, after yesterday signing a joint venture agreement to operate the Taiwanese brand in the Republic and Hong Kong.
https://www.straitstimes.com/business/companies-markets/wu-pao-chun-outlet-to-open-in-spore-next-year

Changing hands
Tracking fund flows in the Singapore stock market
https://www.businesstimes.com.sg/companies-markets/changing-hands-22

VIEWS, REVIEWS, FORUM & Others

Handicap the next financial crisis before it starts
The news is better than you might think. A decade after the onset of the 2008-2009 global financial crisis – an event usually dated to the bankruptcy of Lehman Bros – the world economy seems to be repairing itself.
https://www.businesstimes.com.sg/opinion/handicap-the-next-financial-crisis-before-it-starts

Tough predicting what the next global financial crisis would be like
It’s been 10 years since a US financial shock turned into a crisis in the global financial, market and economic system. On Sept 15, 2008, Lehman Brothers filed for bankruptcy as the shock waves from sub-prime mortgages rocked the entire financial system, shattering confidence and leading to an economic downfall.
https://www.businesstimes.com.sg/opinion/tough-predicting-what-the-next-global-financial-crisis-would-be-like

The worst is not over for EU integration
European Commission President Jean Claude Juncker gives his annual state-of-the-union address on Tuesday, with the continent facing a choppy autumn. Storm clouds are gathering again not only from the Brexit talks, but also Italy’s eurosceptic coalition government, as well as the populist surge in Eastern Europe, including Hungary and Poland.
https://www.businesstimes.com.sg/opinion/the-worst-is-not-over-for-eu-integration

Solar farms not backed by government subsidies sprouting across Europe
Next to a wheat field north of London, banks of solar panels in 35 neat rows are generating electricity without any support from the government. Despite Britain’s reputation for grey skies, the closely-held developer Anesco Ltd is building the hybrid solar-and-battery facility in Milton Keynes with its own capital. It is just one of about 15 photovoltaic (PV) projects underway from Italy to the UK which are not relying on subsidies to make a profit, said Bloomberg NEF; the research organisation which helps energy professionals generate opportunities says it expects many more to come.
https://www.businesstimes.com.sg/energy-commodities/solar-farms-not-backed-by-government-subsidies-sprouting-across-europe