DAILY NEWS

Daily News – 12 Nov 2020 (Thu)

Singapore Real Estate

Suntec Tower Two’s 42nd floor up for sale with S$33m guide price
A prime office floor spanning 9,989 square feet in Suntec Tower Two has been put on the market with a guide price of S$33 million. That works out to an average of S$3,303 per square foot (psf) based on strata area, said its exclusive marketing agent Savills Singapore. The offering comprises four contiguous strata office units on level 42 – the third-highest floor in the building.
https://www.businesstimes.com.sg/real-estate/suntec-tower-twos-42nd-floor-up-for-sale-with-s33m-guide-price

ARA buys Seoul office tower; DBS, UOB grant S$385.8m green loan for 5One Central
ARA Asset Management has purchased Parc1 Tower II – an office building in Seoul – for over one trillion Korean won (S$1.21 billion), in a deal slated to be the largest single asset transaction in Korea this year, ARA said in a press statement on Tuesday.
https://www.businesstimes.com.sg/real-estate/ara-buys-seoul-office-tower-dbs-uob-grant-s3858m-green-loan-for-5one-central
https://www.straitstimes.com/business/companies-markets/ara-buys-seoul-office-tower-for-12-billion

Condo, HDB rental prices and volume up again in Oct: SRX
Rents for both Housing Board (HDB) flats and condominium units continued to rise in October, while rental volume grew for the second month running, according to flash data from real estate portal SRX Property released on Wednesday.
https://www.businesstimes.com.sg/real-estate/condo-hdb-rental-prices-and-volume-up-again-in-oct-srx
https://www.straitstimes.com/singapore/hdb-condo-rents-up-again

ERA homes in on digital signatures for tenancy deals
Property firm ERA Realty Network is introducing digital signatures for tenancy agreements, becoming the first company in the private sector to pilot the recently launched Sign with SingPass service. The move will help its agents save time, as they will no longer need to meet property owners in person for signatures, and also minimise physical contact amid the Covid-19 pandemic.
https://www.straitstimes.com/tech/era-homes-in-on-digital-signatures-for-tenancy-deals

How construction firms can build a sustainable future post-Covid-19
The pace of construction activity is slowly picking up here, but it is far from business as usual. Firms continue to grapple with new Covid-19 infections and labour challenges as well as strains on costs, cash flow and profits. The knock-on effect has been a three-to six-month delay in construction timelines. The sector is expected to contract 23 per cent this year from last year, according to official forecasts in September, down from the June estimate of an 11.4 per cent decline.
https://www.straitstimes.com/business/banking/how-construction-firms-can-build-a-sustainable-future-post-covid-19

Singapore Economy

Asean on track to ink world’s largest trade pact at summit
Prime Minister Lee Hsien Loong will meet his regional counterparts virtually for this week’s Asean Summit and related meetings, during which the Regional Comprehensive Economic Partnership (RCEP) trade deal is expected to be signed, after years of negotiation.
https://www.straitstimes.com/singapore/asean-on-track-to-ink-worlds-largest-trade-pact-at-summit

Singapore’s travel easing is a risk game
Singapore’s gradual border reopening is not risk-free – but the public health risks must be balanced against a strong economic need for easing controls, analysts have said. Some also suggested that Taiwan and Thailand could be next on the list of places where Singapore allows unrestricted, quarantine-free travel.
https://www.businesstimes.com.sg/government-economy/singapores-travel-easing-is-a-risk-game

HK travel bubble to help Singapore aviation take off when time’s right
Singapore’s air travel bubble with Hong Kong is unlikely to make an impact on the tourism sector for now, but the significance of the arrangement is in getting Singapore ready to quickly start its air hub positioning when all the “chess pieces” are in place.
https://www.businesstimes.com.sg/transport/hk-travel-bubble-to-help-singapore-aviation-take-off-when-times-right
https://www.straitstimes.com/singapore/transport/spore-hong-kong-leisure-travel-to-kick-off-on-nov-22

Companies’ Brief

F&N’s full-year earnings dip 2.1%, hit by lower soda sales
Beverage and publishing company Fraser and Neave (F&N) on Wednesday posted a 2.1 per cent dip in net profit to S$149.2 million, as revenue fell 3.6 per cent to S$1.83 billion for its full year ended Sept 30, 2020. Its revenue was hit by lower volumes from its soft drinks and publishing businesses, it said.
https://www.businesstimes.com.sg/companies-markets/fns-full-year-earnings-dip-21-hit-by-lower-soda-sales

PropNex net profit rises 10.6% in third quarter
Real estate agency PropNex reported a 10.6 per cent improvement in its bottom line for its fiscal third quarter despite a dip in revenue, it said in an exchange filing on Thursday morning. Net profit attributable to owners of the company grew to S$6.8 million for the three months ended Sept 30, 2020, from S$6.1 million in the year-ago period.
https://www.businesstimes.com.sg/companies-markets/propnex-net-profit-rises-106-in-third-quarter

UOL says retail portfolio faces headwinds, sees uptick in hospitality
Property company UOL Group on Wednesday said headwinds remain, although its retail portfolio’s committed occupancy remains stable, with average daily footfall in the third quarter having recovered to 54 per cent of pre-Covid levels. In the first nine months of 2020, shopper footfall fell 43.1 per cent from the levels in the year before.
https://www.businesstimes.com.sg/companies-markets/uol-says-retail-portfolio-faces-headwinds-sees-uptick-in-hospitality

Ascendas Reit slumps on S$1.2b equity fundraising
Units of Ascendas Real Estate Investment Trust (Ascendas Reit) lost ground on Wednesday after its manager announced it was readying a war chest to acquire data centres and office buildings overseas. The counter dipped almost 7 per cent to an intra-day low of S$2.97 within the first half hour of trading, close to the issue price of S$2.96 announced earlier in the morning for the preferential offering.
https://www.businesstimes.com.sg/companies-markets/ascendas-reit-slumps-on-s12b-equity-fundraising

Views, Reviews, Forum & Others

Edwin Tong is Chinese Community Liaison Group’s new chairman
Minister for Culture, Community and Youth Edwin Tong has been appointed the head of a group tasked with strengthening relations between the Government and the Chinese community, as well as boosting cooperation among various Chinese groups.
https://www.straitstimes.com/singapore/edwin-tong-is-chinese-community-liaison-groups-new-chairman

URA’s removal of some price information puts data transparency in focus
The removal of certain pricing data linked to home buying by foreigners from an Urban Redevelopment Authority (URA) platform has highlighted the importance of data transparency. In October, the URA launched a revamped version of its subscription-based Real Estate Information System (Realis) – which provides detailed data on Singapore’s property market…
https://www.businesstimes.com.sg/opinion/uras-removal-of-some-price-information-puts-data-transparency-in-focus

Conserve a building, save the planet: New reason to conserve Singapore’s landmark modernist buildings
Many heritage enthusiasts have been discussing the value of 1950s-1970s modernist icons as cultural capital that embodies the visionary ideals and architectural prowess of Singapore’s pioneering planners, developers, builders and architects.
https://www.straitstimes.com/opinion/conserve-a-building-save-the-planet-0

It could be a K-shaped recovery in the labour markets too
In every recession, there is a lively debate among economists as to whether the eventual economic recovery will be “L-shaped”, “V-shaped” or “U-shaped”. Depending on one’s viewpoint and expectations, advocates of an L-shaped recovery could be deemed the pessimists. (Of course, they would maintain that they are realists.) Either way, advocates of this view believe that the economy in question will have a very hard time recovering.
https://www.businesstimes.com.sg/opinion/it-could-be-a-k-shaped-recovery-in-the-labour-markets-too

Taking a sustainable digitalisation route
In the face of a looming climate crisis, businesses can no longer afford to ignore their impact on the environment. Sustainability and business growth must go hand in hand in order to balance economic opportunities with our responsibility to the planet.
https://www.businesstimes.com.sg/opinion/taking-a-sustainable-digitalisation-route

Biden needs to re-enter CPTPP, build confidence with re-pivot to Asia
US president-elect Joseph Biden must take bold steps for the United States to re-enter a transformed global trading agreement, while reassuring partner countries that the US will stay committed to the pact. A move by the Biden administration to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) would benefit most of Asia.
https://www.businesstimes.com.sg/opinion/biden-needs-to-re-enter-cptpp-build-confidence-with-re-pivot-to-asia

Chinese clampdown on fintech companies unlikely to affect Singapore firms: Experts
China’s fintech clampdown will probably have a limited impact on Singapore, although it could encourage investors to pivot to the city-state and local fintech companies to expand their footprint in the region. Yesterday, China’s top banking watchdog called for fintech firms to be subjected to the same supervision and risk management requirements as banks.
https://www.straitstimes.com/business/banking/chinese-clampdown-unlikely-to-affect-spore-firms-experts

Major redesign of IT systems in public sector next year
A significant redesign of Singapore’s public sector IT systems will take place next year as part of new measures to safeguard citizens’ personal data. For instance, inactive user accounts will be automatically removed when public servants resign and leave. It is currently a manual process.
https://www.straitstimes.com/tech/tech-news/major-redesign-of-it-systems-in-public-sector-next-year

Good news on vaccine front but markets should stay circumspect
Signs of an early victory in the Covid-19 vaccine challenge emerged this week as the clinical trials to evaluate the safety and efficacy of vaccines across the world begin to turn up promising results. Almost a year into the devastating coronavirus outbreak, the positive news on this front has imbued hope that a viable solution to fight the pandemic may soon be upon us…
https://www.businesstimes.com.sg/opinion/good-news-on-vaccine-front-but-markets-should-stay-circumspect
https://www.straitstimes.com/opinion/st-editorial/cautious-optimism-on-vaccines-front-0

Update on COVID-19 (Coronavirus Disease 2019) Situation

18 new imported Covid-19 cases, the most since April
There were 18 new coronavirus cases confirmed yesterday, taking Singapore’s total to 58,091. All were imported cases and had been placed on stay-home notices (SHN) on arrival in Singapore, said the Ministry of Health (MOH). They comprised two permanent residents, four work pass holders, 10 work permit holders, one dependant’s pass holder and one special pass holder.
https://www.straitstimes.com/singapore/health/18-new-imported-covid-19-cases-the-most-since-april
*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