DAILY NEWS

Daily News – 17 Jul 2020 (Fri)

Singapore Real Estate

Commercial podium of Tedge put up for sale
The entire commercial podium of Tedge, a freehold mixed-use development at the corner of Changi Road and Telok Kurau Road, in district 15 has been put up for sale. The guide price is in excess of S$18 million or S$3,228 per square foot, said Savills Singapore, which is marketing the property for Macly Group, which is developing Tedge.
https://www.businesstimes.com.sg/real-estate/commercial-podium-of-tedge-put-up-for-sale

Redevelopment may head off office market blues
Singapore office rents are easing amid a drop in demand as businesses go into cash-conservation mode amid a recession, prompting some to downsize their headcount. However the limited completion of new CBD Grade A offices this year and next should mitigate the rental drop.
https://www.businesstimes.com.sg/real-estate/redevelopment-may-head-off-office-market-blues

A stream of office space leasing deals in pipeline despite uncertain business climate
The Covid-19 outbreak may have caused some potential tenants to pause their office leasing plans but at least a few deals have been done. These include two floors that will be vacated by Grab at Guoco Tower in Tanjong Pagar .
https://www.businesstimes.com.sg/real-estate/a-stream-of-office-space-leasing-deals-in-pipeline-despite-uncertain-business-climate

Steeper falls likely for Singapore retail rents in H2
Vacancies from the second quarter of 2020 are expected to put further downward pressure on retail rents in Singapore as more businesses shutter for good, said Cushman & Wakefield (C&W) in a report on Thursday.
https://www.businesstimes.com.sg/real-estate/steeper-falls-likely-for-singapore-retail-rents-in-h2
https://www.straitstimes.com/business/property/retail-rent-to-fall-more-sharply-amid-mounting-mall-vacancies

Some new BTO flats may be delayed by up to 9 months: HDB
Retail sales assistant Joyce Loh and her husband were supposed to get the keys to their new Build-To-Order (BTO) flat in Bukit Batok last month, but will now have to wait till the start of next year. Their block in West Plains @ Bukit Batok is one of several BTO projects facing a longer delay of up to nine months, in a revision of an earlier estimation of six months, the Housing Board told The Straits Times on Wednesday.
https://www.straitstimes.com/singapore/housing/some-new-bto-flats-may-be-delayed-by-up-to-9-months-hdb
https://www.businesstimes.com.sg/real-estate/some-bto-flats-may-be-delayed-up-to-nine-months-hdb

Singapore Economy

Singapore non-oil exports jump 16.1% in June from low base, reversing drop in May
Singapore – A low year-ago base and strong performance of the electronics sector pushed up Singapore non-oil domestic exports (Nodx) in June, putting them back on track of recession-defying growth. Nodx last month jumped 16.1 per cent from June 2019 when it had dropped by 17 per cent, Enterprise Singapore (ESG) said on Friday (July 17).
https://www.straitstimes.com/business/economy/singapore-non-oil-exports-jump-161-in-june-reversing-drop-in-may
https://www.businesstimes.com.sg/government-economy/singapore-non-oil-exports-jump-by-161-in-june-on-low-base-in-previous-year

Financial services a silver lining amid Covid-19 gloom
The financial services sector grew by 5 per cent in the first six months of this year – a silver lining amid gloomy economic predictions due to the Covid-19 pandemic. The growth outpaced the same period last year, according to estimates by the Monetary Authority of Singapore (MAS).
https://www.straitstimes.com/business/economy/financial-services-a-silver-lining-amid-covid-19-gloom

MAS, banks to see how best to wean borrowers off Covid-19 reliefs
The Monetary Authority of Singapore (MAS) is studying the delicate balance of when and how to ease virus relief measures, so as to mitigate unintended “cliff” effects when these helplines expire towards the end of the year.
https://www.businesstimes.com.sg/government-economy/mas-banks-to-see-how-best-to-wean-borrowers-off-covid-19-reliefs
https://www.straitstimes.com/business/economy/mas-to-help-people-firms-ease-dependence-on-relief-measures

Companies’ Brief

GuocoLand’s flagship Guoco Tower strikes gold at real estate’s ‘Oscars’
Guoco Tower – the flagship integrated mixed-use development of GuocoLand – was named a World Gold Winner in the mixed-use development category at this year’s FIABCI World Prix d’Excellence Awards held in Paris on Thursday.
https://www.businesstimes.com.sg/real-estate/guocolands-flagship-guoco-tower-strikes-gold-at-real-estates-oscars

Keppel Land achieves 22% reduction in carbon emission intensity from 2010 level
Keppel Land’s carbon emission intensity in 2019 was about 22 per cent below the level in 2010, exceeding its earlier target to reduce it by 16 per cent, the company said in its latest sustainability report released on Friday.
https://www.businesstimes.com.sg/real-estate/keppel-land-achieves-22-reduction-in-carbon-emission-intensity-from-2010-level
https://www.straitstimes.com/business/kepland-achieves-carbon-emission-intensity-target-early

Second time’s the charm as ESR-Reit, Sabana Reit revive merger proposal
ESR-Reit and Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) are taking another crack at a merger after earlier talks in 2017 fell through, seeking to build an enlarged entity to stave off headwinds in a post-Covid world.
https://www.businesstimes.com.sg/real-estate/second-times-the-charm-as-esr-reit-sabana-reit-revive-merger-proposal
https://www.straitstimes.com/business/companies-markets/esr-reit-and-sabana-reit-propose-merger

Frasers Property backs US smart building software startup Cohesion
Frasers Property Group has joined a US$6.5 million seed funding round for US smart building software startup Cohesion, the Singapore-based real-estate player announced on Thursday. Cohesion helps commercial real-estate operators integrate their buildings’ systems, enhance tenant experiences and provide insights. It aims to fill the gap between existing tenant-facing apps and legacy-building engineering systems, enhancing tenants’ health and safety.
https://www.businesstimes.com.sg/garage/frasers-property-backs-us-smart-building-software-startup-cohesion

Skyscanner to downsize Singapore marketing team
Travel booking firm Skyscanner is set to downsize its marketing division in Singapore, as it plans to centralise the function in the United Kingdom, a company spokesperson told The Business Times. It has not made any decision yet on whether to downsize its office space here.
https://www.businesstimes.com.sg/garage/skyscanner-to-downsize-singapore-marketing-team

OUE to sell iconic US Bank Tower for US$430m, below valuation
Property developer OUE Limited will sell US Bank Tower – known for its cameos in Hollywood movies and a sky-high outdoor glass slide – for US$430 million. The sale price is about two-thirds of the property’s US$650 million fair value as at Dec 31, 2019, according to OUE’s latest annual report.
https://www.businesstimes.com.sg/companies-markets/oue-to-sell-iconic-us-bank-tower-for-us430m-below-valuation
https://www.straitstimes.com/business/companies-markets/oue-to-sell-iconic-us-bank-tower-for-us430m-below-valuation

Views, Reviews, Forum & Others

Leadership in the new normal
The Covid-19 pandemic has made obvious the complexity of our world. Almost overnight, our forecasts and budgets for 2020 became obsolete and we realised that we had no way to produce accurate predictions. Governments and businesses had to play catch up having failed to recognise the early signals.
https://www.businesstimes.com.sg/leadership-management/leadership-in-the-new-normal

Where the jobs are
With Singapore officially in recession, the cuts have begun. We survey the jobs market to find out which sectors are now hiring and what jobs are in demand, while economists and recruiters give their take on when and how the labour market will recover, in Brunch this Saturday in The Business Times Weekend.
https://www.businesstimes.com.sg/weekend/where-the-jobs-are

Covid-19 and tech has changed culture consumption
Covid-19 has catalysed a fundamental shift in the way we do business – the way people work, the way organisations run, and interestingly, the business of art and culture. Over a third of the global population has participated in some kind of lockdown measure to fight the spread of the pandemic, and many borders remain closed. In response, virtual travel and experiences have grown in popularity as people seek more activities and experiences they can perform safely from home.
https://www.businesstimes.com.sg/opinion/covid-19-and-tech-has-changed-culture-consumption

Moving online now will help businesses emerge stronger on the other side of the crisis
Covid-19 isn’t our first encounter with a public health crisis. Back in 2003, we made a timely decision to go all-in on technology during the Sars outbreak, staying on schedule for the launch of our flagship Taobao e-commerce platform. With the entire workforce quarantined, we took great pains to install Internet and network connections in the homes of our employees to overcome the challenges of a divided workforce, in a time before laptops were ubiquitous.
https://www.businesstimes.com.sg/opinion/moving-online-now-will-help-businesses-emerge-stronger-on-the-other-side-of-the-crisis

Family offices temporarily reduce risk profile amid Covid-19: UBS report
Global family offices have shifted towards risk-averse asset classes such as cash and gold, with these offering a buffer for their portfolio amid uncertain times, the UBS’ 2020 Global Family Office Report showed.
https://www.businesstimes.com.sg/companies-markets/family-offices-temporarily-reduce-risk-profile-amid-covid-19-ubs-report
https://www.straitstimes.com/business/companies-markets/strategic-asset-allocations-help-protect-family-wealth-survey

Startups’ plug-and-play solutions offer path to digitalisation
As the Covid-19 pandemic forces consumers indoors and online, startups and young tech firms that offer plug-and-play digitalisation solutions are seeing greater demand from South-east Asian companies. Many of these are small and medium-sized enterprises (SMEs) in traditional sectors, with little to no experience in technology, and which are now looking for a highway to the virtual world.
https://www.businesstimes.com.sg/garage/startups-plug-and-play-solutions-offer-path-to-digitalisation

E-com offers more than just a digital echo of an old world
The road ahead for merchants in the new norm will not be confined to the local shores. It is expansive and goes beyond Singapore, leading merchants to a wider consumer market overseas. It requires them to think international on all fronts.
https://www.businesstimes.com.sg/opinion/e-com-offers-more-than-just-a-digital-echo-of-an-old-world

Job losses likely to hit MBS eventually, say analysts
It is likely a matter of time before Marina Bay Sands (MBS) will have to let go of some of its staff due to the fallout from the Covid-19 pandemic, said analysts, following a retrenchment exercise by fellow integrated resort operator Resorts World Sentosa (RWS).
https://www.straitstimes.com/singapore/job-losses-likely-to-hit-mbs-eventually-say-analysts

RWS layoffs bode ill for tourism sector
The layoffs at Resorts World Sentosa (RWS) are a sign of things to come for Singapore’s tourism sector, industry observers warn. While mass retrenchments had up till now largely been prevented, job losses and business closures are likely to rise over the next two months…
https://www.straitstimes.com/singapore/rws-layoffs-bode-ill-for-tourism-sector

Update on COVID-19 (Coronavirus Disease 2019) Situation

RWS casino among new places visited by infectious patients
Resorts World Sentosa’s (RWS) casino was among the new places visited by Covid-19 patients while they were still infectious, the Ministry of Health (MOH) said yesterday. Three visits were recorded at the casino, on July 4, 5 and 6, but MOH did not say whether different patients made the visits separately or at least one patient visited the location thrice.
https://www.straitstimes.com/singapore/rws-casino-among-new-places-visited-by-infectious-patients

No cases of reinfection among recovered patients here, says NCID
There have not been any cases of reinfection among recovered Covid-19 patients in Singapore, the National Centre for Infectious Diseases (NCID) said yesterday. And while there have been several reports from abroad about the progressive decline in the level of antibodies in recovered patients, these need to be evaluated further.
https://www.straitstimes.com/singapore/health/no-cases-of-reinfection-among-recovered-patients-here-says-ncid

Coronavirus: New contact tracing device and check-in system on trial at worksite
Surbana Jurong is trialling the use of a new contact tracing device and digital check-in system to have more visibility and control over the social encounters of Covid-19 patients to minimise infection spread at worksites.
https://www.straitstimes.com/singapore/new-contact-tracing-device-and-check-in-system-on-trial-at-worksite
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