DAILY NEWS

Daily News – 12 January 2022 (Wed)

Singapore Real Estate

Singapore property auction listings likely to gain pace as rates rise
More properties in Singapore could go under the hammer this year, amid rising interest rates and the expiry of relief measures for borrowers. Figures from Knight Frank showed that the property auction market was active in 2021 with a total of 670 listings – including repeat listings but excluding properties sold outside of auction – up 35.4 per cent from 2020’s tally.
https://www.businesstimes.com.sg/real-estate/singapore-property-auction-listings-likely-to-gain-pace-as-rates-rise

Singapore Economy

Economic stagnation is No. 1 worry of Singapore businesses: WEF report
Singapore – The possibility of a prolonged economic stagnation setting in is the biggest worry over the next two years for Singapore businesses, a survey by the World Economic Forum (WEF) found. Their other top five concerns: Infectious diseases, asset bubble bursts in large economies, failure of cyber-security measures and climate action failure.
https://www.straitstimes.com/business/economy/economic-stagnation-is-no-1-worry-of-singapore-businesses-wef-report

Inflation risks will lead to policy tightening, opportunities to invest in 2022: Analysts
Singapore – Inflation risks in the United States and Singapore are expected to persist this year, leading to likely policy tightening measures by major central banks, including the US Federal Reserve and Monetary Authority of Singapore, economists and analysts said.
https://www.straitstimes.com/business/economy/inflation-risks-will-lead-to-policy-tightening-opportunities-to-invest-in-2022-analysts

New securities for transfer of official foreign reserves will not increase risks: Wong
A new class of securities, introduced to facilitate the transfer of official foreign reserves to the government, will not increase risks for Singapore’s monetary operations, Finance Minister Lawrence Wong said in Parliament on Tuesday (Jan 11).
https://www.businesstimes.com.sg/government-economy/new-securities-for-transfer-of-official-foreign-reserves-will-not-increase-risks
https://www.straitstimes.com/singapore/politics/amendments-passed-to-allow-mas-to-subscribe-for-govt-debt-to-facilitate-transfers-of-official-foreign-reserves

GST hike cannot be put off forever but impact can be delayed: Indranee
While the upcoming increase in the Goods and Services Tax (GST) cannot be put off forever, its impact on Singaporeans is something that can be delayed by policy design, said Second Minister for Finance Indranee Rajah.
https://www.businesstimes.com.sg/government-economy/gst-hike-cannot-be-put-off-forever-but-impact-can-be-delayed-indranee
https://www.straitstimes.com/singapore/politics/impact-of-gst-hike-will-be-delayed-for-singaporeans-but-rise-cannot-be-put-off-forever-indranee

Singapore raising GST bolsters case for MAS to tighten policy: Analysts
Singapore (Bloomberg) – An expected hike in Singapore’s goods and services tax (GST) this year is raising pressure on the central bank to tighten monetary policy as it seeks to rein in mounting inflation pressures, according to analysts polled.
https://www.straitstimes.com/business/economy/singapore-raising-gst-bolsters-case-for-mas-to-tighten-policy-analysts

How to help mitigate the impact of a GST rise
Singapore – The question was bound to come up when the House discussed inflation and fiscal support: Can the goods and services tax (GST) increase be delayed?
https://www.straitstimes.com/singapore/politics/how-to-help-mitigate-the-impact-of-a-gst-rise

Don’t rush into ‘hasty legislation’ on working from home: Gan Siow Huang
Singapore “should not rush into hasty legislation” around working from home, Minister of State for Manpower Gan Siow Huang said on Tuesday (Jan 11), though she noted that such arrangements are expected to become more mainstream.
https://www.businesstimes.com.sg/government-economy/dont-rush-into-hasty-legislation-on-working-from-home-gan-siow-huang
https://www.straitstimes.com/singapore/politics/mom-to-help-guide-firms-with-work-from-home-plans-rather-than-rushing-into-laws

Asean, Singapore likely to benefit from US-China geopolitical tensions: Experts
Singapore – The geopolitical contest between the United States and China will not only continue but intensify over the next 10 years, leading to potentially positive implications for Asean and Singapore, said Professor Kishore Mahbubani, distinguished fellow at the National University of Singapore’s Asia Research Institute.
https://www.straitstimes.com/business/economy/asean-singapore-likely-to-benefit-from-us-china-geopolitical-tensions-experts

Calls for carbon, plastic credits to be zero-rated among PwC’s proposals for Budget 2022
Professional services firm PwC Singapore has called for carbon, plastic and green credits to be zero-rated to better promote the adoption of green initiatives without increasing business costs. This would relieve buyers from incurring irrecoverable Goods and Services Tax (GST) or reverse charges when they purchase offsets, while allowing registered sellers to recover the GST incurred on their expenses, said PwC.
https://www.businesstimes.com.sg/government-economy/calls-for-carbon-plastic-credits-to-be-zero-rated-among-pwcs-proposals-for-budget

Views, Reviews, Forum & Others

Keeping Singapore’s status as Asia-Pacific’s global Reit hub
Singapore is often dubbed one of Asia-Pacific’s largest real estate investment trust (Reit) platforms. With the successful listing of 2 new Reits in November and December 2021, there are currently 44 Singapore-listed Reits and property trusts (S-Reits) with a combined market capitalisation of over S$110 billion.
https://www.businesstimes.com.sg/opinion/keeping-singapores-status-as-asia-pacifics-global-reit-hub

Singapore’s foresight practices should be taken beyond the government
“You’ve got foresight.” We say that when a friend anticipates something which turns out to be true. In academia and organisations though, the practice of foresight goes deeper, and it does not involve predicting the future.
https://www.businesstimes.com.sg/opinion/singapores-foresight-practices-should-be-taken-beyond-the-government

What issuers, shareholders should be aware of in respect of proxy votes for scheme of arrangement meetings
Mergers and acquisitions are a feature of the corporate landscape. A common mechanism used to enable an M&A is the scheme of arrangement. The scheme is a flexible tool used to effect a compromise or arrangement between the company and its shareholders.
https://www.businesstimes.com.sg/opinion/what-issuers-shareholders-should-be-aware-of-in-respect-of-proxy-votes-for-scheme-of

Asia-Pacific dividend growth to ease as global dividend payouts hit US$2 trillion in 2022: IHS Markit
Despite slowing dividend growth in some regions and sectors, global dividend payouts is expected to rise further by 6 per cent this year to US$2.09 trillion, from US$1.97 trillion in 2021, according to a report by IHS Markit.
https://www.businesstimes.com.sg/companies-markets/asia-pacific-dividend-growth-to-ease-as-global-dividend-payouts-hit-us2-trillion

Investing in proptech and other innovations for a sustainable future
PGIM Real Estate sees merits in repurposing or refreshing old buildings under the group’s portfolio, rather than tearing them down and rebuilding from the ground up.
https://www.businesstimes.com.sg/companies-markets/green-business/investing-in-proptech-and-other-innovations-for-a-sustainable

Update on COVID-19 (Coronavirus Disease 2019) Situation

Rise in Omicron cases to 438; fall in Covid-19 infection growth rate
Singapore – The number of new cases of the Covid-19 variant Omicron rose to 438 on Tuesday (Jan 11), up from 389 a day earlier, said the Ministry of Health (MOH). Of these, 159 were local cases and 279 were imported, MOH said in its daily update.
https://www.straitstimes.com/singapore/health/rise-in-omicron-cases-to-438-fall-in-covid-19-infection-growth-rate

Singapore unlikely to be hit with work stoppages, service disruption when Omicron wave crests
Singapore is expected to avoid any major disruptions to essential services when the Omicron wave hits, as a high vaccination rate and revisions to healthcare protocols should stave off a labour crunch.
https://www.businesstimes.com.sg/government-economy/singapore-unlikely-to-be-hit-with-work-stoppages-service-disruption-when-omicron

Flight bookings for Singapore travel spike before halt of VTL ticket sales in December
Recent data showed there was a surge in flight bookings from and to Singapore on the day the Republic announced the suspension of ticket sales for its Vaccinated Travel Lane (VTL) scheme, as travellers rushed to beat the halt.
https://www.businesstimes.com.sg/transport/flight-bookings-for-singapore-travel-spike-before-halt-of-vtl-ticket-sales-in-december

*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