DAILY NEWS

Daily News – 11th October 2018

Singapore Economy

Construction firms challenged as business shrinks, cashflow hit
The beleaguered oil and gas industry has barely started to climb out of the hole when another major business sector – construction – is headed for dark times, with increasing liquidations and collapses. Backed into a corner by a shrinking market and cashflow gap, at least 20 construction and engineering firms were involved in winding up applications in the third quarter (July to September) alone, according to a count by The Business Times.
https://www.businesstimes.com.sg/government-economy/construction-firms-challenged-as-business-shrinks-cashflow-hit

MAS chief Menon strikes upbeat tone amid trade tensions
Global economic risks may have risen but there’s no need to overreact just yet, said Singapore’s central bank chief Ravi Menon. “Dark clouds are an appropriate phrase but it’s not raining yet,” Mr Menon, managing director at the Monetary Authority of Singapore (MAS), said in an interview on Bloomberg Television on Tuesday. “I don’t want to paint too glossy a picture on it but I don’t think we should overreact.”
https://www.businesstimes.com.sg/government-economy/mas-chief-menon-strikes-upbeat-tone-amid-trade-tensions
https://www.straitstimes.com/business/economy/mas-chief-upbeat-on-global-economy-despite-trade-tensions
https://www.straitstimes.com/business/economy/singapore-central-bank-chief-strikes-upbeat-tone-amid-trade-tensions

$1.7 billion spent on industry transformation maps by end-2017
About $1.7 billion of the $4.5 billion earmarked for Singapore’s future economy road map has been spent as of end-2017. This figure was revealed on Wednesday (Oct 10) in a report by a parliamentary committee of MPs tasked with examining government spending.
https://www.straitstimes.com/politics/17-billion-spent-on-industry-transformation-maps-by-end-2017

Singapore Real Estate

Condo rents slip 0.4% in September; HDB rents drop 0.5%: SRX
The sluggish rental market for both private and HDB properties is showing no signs of improving, going by flash data from real estate portal SRX on Wednesday. Rents for condominiums and private apartments in September dipped by 0.4 per cent from the previous month. They were unchanged in August, from an earlier SRX estimate of a 0.1 per cent dip.
https://www.businesstimes.com.sg/real-estate/condo-rents-slip-04-in-september-hdb-rents-drop-05-srx
https://www.businesstimes.com.sg/real-estate/singapore-condo-rents-slip-04-in-september-hdb-rents-drop-05-srx
https://www.straitstimes.com/business/property/condo-and-hdb-rents-down-in-sept-srx

Rochor’s Golden Wall Centre hits en-bloc market again
Golden Wall Centre has launched its second attempt at a collective sale, with a reserve price of S$260 million – little changed from what the strata unit owners wanted in a 2016 bid. This works out to a land price of S$2,194 per square foot per plot ratio for the freehold commercial property at 89, Short Street in Rochor, which is zoned for commercial use.
https://www.businesstimes.com.sg/real-estate/rochors-golden-wall-centre-hits-en-bloc-market-again

Tulip Garden sale has not hit snag: Colliers
Colliers International, the marketing agent for Tulip Garden, has quashed speculation that the $906.9 million collective sale of the Farrer Road project has hit a speed bump. Its managing director Tang Wei Leng said: “There is no basis to the market speculation. The Tulip Garden collective sale is proceeding and we are working towards the completion of sale.”
https://www.straitstimes.com/business/property/tulip-garden-sale-has-not-hit-snag-colliers

Severe cracks to the structure and facade of shophouses in Jalan Besar
Occupants of some shophouses in Jalan Besar and Maude Road are concerned by serious cracks on the facade and structure of the buildings. The road and five foot ways next to the buildings also appeared sunken and tilted. Professional engineer David Ng, who saw pictures of the cracks taken by The New Paper, said they looked serious.
https://www.straitstimes.com/singapore/severe-cracks-to-the-structure-and-facade-of-shophouses-in-jalan-besar

About 20,000 workers expected at Changi East after T5 construction begins around 2020
A huge plot of land, next to Changi Airport, will become a massive construction zone when major tunnelling works start in 2019 and the construction of a new passenger terminal – Terminal 5 – begins around 2020. When construction peaks, about 20,000 workers, up from just 3,000 now, are expected to be based at the Changi East site.
https://www.straitstimes.com/singapore/transport/about-20000-workers-expected-at-changi-east-after-t5-construction-begins-around
https://www.straitstimes.com/singapore/transport/changi-east-gears-up-for-massive-airport-building-works

Changi Airport adopts smart glasses, tech solutions to address challenges of Changi East project
Innovative technology-based solutions such as an online work declaration system and smart glasses have been developed and deployed to address the unique challenges faced in the Changi East project, said Changi Airport Group (CAG).
https://www.channelnewsasia.com/news/singapore/changi-airport-tech-solutions-changi-east-terminal-5-10811174
https://www.todayonline.com/singapore/wearable-security-debuts-changi-east-development-site

S’pore’s en bloc sales collapse after latest property curbs
Singapore residential-property investment sales have collapsed after the latest round of housing curbs put the brakes on ‘en-bloc’ redevelopment deals. Just two redevelopment sales worth S$353 million were completed in the third quarter, down from S$3.8 billion of transactions the previous quarter, according to data compiled by Cushman & Wakefield Inc.
https://www.todayonline.com/singapore/spores-en-bloc-sales-collapse-after-latest-property-curbs
https://www.bloomberg.com/news/articles/2018-10-10/singapore-en-bloc-sales-collapse-after-latest-property-curbs

Companies’ Brief

Russian cybersecurity firm Group-IB to move global HQ to Singapore
Moscow-based firm Group-IB has spent close to a decade fighting and investigating cybercrime in countries all over the world. Now, the company is training its sights on Singapore as the catalyst for an expansion into South-east Asia.
https://www.businesstimes.com.sg/technology/russian-cybersecurity-firm-group-ib-to-move-global-hq-to-singapore

Sembcorp starts commercial operation of 225-MW Myanmar power plant
Sembcorp Industries on Wednesday announced that its 225-megawatt gas-fired Sembcorp Myingyan Independent Power Plant (IPP) in Mandalay, Myanmar, has successfully commenced full commercial operation following its first phase operation in May this year.
https://www.businesstimes.com.sg/companies-markets/sembcorp-starts-commercial-operation-of-225-mw-myanmar-power-plant

Singtel to buy Australian cyber security firm for A$23.3 million
Singtel’s Australian subsidiary has inked a deal to buy a privately held cyber security firm incorporated in Victoria state, which will be integrated into the group’s Trustwave cyber security arm. Optus Cyber Security will pay up to A$23.3 million (S$22.9 million) for three-year-old Hivint, subject to earn-out targets and adjustments such as working capital and cash at closing, in a conditional agreement announced by the group on Wednesday evening.
https://www.businesstimes.com.sg/companies-markets/singtel-to-buy-australian-cyber-security-firm-for-a233-million

ICA achieves energy savings at Woodlands, Tuas checkpoints
The Immigration & Checkpoints Authority (ICA) is one of the three organisations recognised this year for best energy efficiency practices in the public sector category. This award gives recognition to outstanding public sector agencies that have demonstrated exemplary commitment to adopting good energy efficiency practices and have been proactive in implementing energy efficiency improvement measures at their premises.
https://www.businesstimes.com.sg/hub/energy-efficiency-national-partnership/ica-achieves-energy-savings-at-woodlands-tuas-checkpoints

Electricity use down at MAS Building
The Monetary Authority of Singapore (MAS) is another recipient of the Best Energy Efficiency Practices Award in the public sector category this year. Its building, completed in 1985, is an early adopter of energy efficient practices, being among the first to implement electronic ballast for its lightings.
https://www.businesstimes.com.sg/hub/energy-efficiency-national-partnership/electricity-use-down-at-mas-building

DBS launches programme to mentor 12 social enterprises in Singapor
A programme by DBS to mentor, train and finance 12 social enterprises in Singapore, jointly administered by the DBS SME Banking team and the DBS Foundation, was launched on Wednesday.
https://www.businesstimes.com.sg/companies-markets/dbs-launches-programme-to-mentor-12-social-enterprises-in-singapore
https://www.straitstimes.com/business/banking/dbs-to-mentor-12-social-enterprises-in-singapore-under-new-programme

Debao Property Development given third extension for AGM, with Nov 30 deadline
Debao Property Development has been given its third extension on the deadline for its annual general meeting, the board said on Wednesday night. The shareholder meeting for the 2017 financial year, which was originally due by April 30, has been pushed back by another two months and must now be held by Nov 30.
https://www.businesstimes.com.sg/companies-markets/debao-property-development-given-third-extension-for-agm-with-nov-30-deadline

Views, Reviews, Forum & Others

Tharman tweaks MAS prohibition orders upon appeal
Orders barring two men from doing some kinds of financial work were tweaked upon appeal to Deputy Prime Minister Tharman Shanmugaratnam, minister in charge of the Monetary Authority of Singapore (MAS), said the regulator on Wednesday.
https://www.businesstimes.com.sg/banking-finance/tharman-tweaks-mas-prohibition-orders-upon-appeal
https://www.straitstimes.com/business/banking/mas-prohibition-orders-against-two-finance-professionals-varied-on-appeal-to
https://www.straitstimes.com/business/companies-markets/mas-prohibition-orders-against-duo-varied-on-appeal

How Singapore’s building firms can become regional leaders
Asia is the place to be if you are a construction company. Experts predict the region’s share of global construction will reach 40 per cent by 2024, with a nominal value of US$2.4 trillion. Every Singaporean construction company will be looking around the region and wondering how to get a piece of this enormous pie.
https://www.businesstimes.com.sg/opinion/how-singapores-building-firms-can-become-regional-leaders

Trump’s trade war may benefit most global economies
The contours of US President Donald Trump’s trade strategy are becoming clearer by the day. America’s trading partners face dramatic threats. But, as the revamp of the United States-Korea Free Trade Agreement and the “reform” and renaming of the North American Free Trade Agreement (Nafta) demonstrate, most countries need to offer only minor concessions to appease Mr Trump. The only country Mr Trump really cares about – his “public enemy No 1” – is China.
https://www.businesstimes.com.sg/opinion/trumps-trade-war-may-benefit-most-global-economies

Rising US-China tensions: Slouching towards Cold War II?
On March 12, 1947, then US President Harry Truman delivered a major address before Congress in which he stated the principles of what became known as the Cold War, depicting the Soviet Union as the major threat to US global interests.
https://www.businesstimes.com.sg/opinion/rising-us-china-tensions-slouching-towards-cold-war-ii

Artificial intelligence has its limits
Save for desserts, curry leaves are essential condiments in any South Indian dish, almost mandatorily so. There is really no other quintessential substitute for the cuisine. Likewise, there is no other common denominator in any of the new tech products than artificial intelligence. AI is omnipresent, demanded by all application users and touted as the new mantra by large and small technology-based lifestyle or industrial players. There is even a prediction that one day, the chess grandmaster could be a machine and that unsolved mathematical theorems will be solved in the 21st century by machines.
https://www.businesstimes.com.sg/opinion/artificial-intelligence-has-its-limits