DAILY NEWS

Daily News – 18th Mar 2020 (Wed)

Singapore Real Estate

Malaysia travel restrictions may fuel short-term demand for budget hotels
Singapore’s rental market is unlikely to see a significant spike in demand from Malaysia’s two week movement control order, but budget hotels could see a short-term bump in demand, say market watchers. With Malaysia restricting movement nationwide until March 31, some Malaysians who commute daily to work in Singapore are choosing to stay here so that their wages are not impacted.
https://www.businesstimes.com.sg/real-estate/malaysia-travel-restrictions-may-fuel-short-term-demand-for-budget-hotels

Coronavirus: Malaysia’s lockdown likely to disrupt Singapore housing projects that use prefab parts
Singapore – Just when United Tec Construction’s building supplies from China resumed this month, the main contractor for Avenue South Residences faces a new challenge – this time from Malaysia’s partial lockdown to contain the coronavirus outbreak.
https://www.straitstimes.com/business/property/coronavirus-malaysias-lockdown-to-disrupt-singapore-housing-projects-that-use-pre

Singapore Economy

MAS expected to step in early as risk of slump rises with Malaysia’s lockdown
An off-cycle easing by the Monetary Authority of Singapore (MAS) now looms closer, analysts said on Tuesday, as recession risks rose on the sudden unilateral closure of Malaysia’s border with Singapore. The two-week shutdown, which has been adopted to curb the spread of the deadly coronavirus pandemic…
https://www.businesstimes.com.sg/government-economy/mas-expected-to-step-in-early-as-risk-of-slump-rises-with-malaysias-lockdown

Surprise growth in NODX likely to be short-lived: economists
Although Singapore’s export numbers defied expectations and moved into positive territory in February, economists believe the uptick is temporary amid a worsening global health crisis led by the novel coronavirus.
https://www.businesstimes.com.sg/government-economy/surprise-growth-in-nodx-likely-to-be-short-lived-economists
https://www.straitstimes.com/business/economy/non-oil-exports-up-3-despite-covid-19-beating-forecasts

Singapore remains the most expensive city for expatriates: survey
Singapore held on to its first-place seat as the world’s most expensive city for expatriates for the seventh straight year, sharing the top spot with Hong Kong and Osaka. However, the city-state’s gap with other cities narrowed.
https://www.businesstimes.com.sg/government-economy/singapore-remains-the-most-expensive-city-for-expatriates-survey

Companies’ Brief

Sasseur Reit’s China malls reopen to higher sales
Sasseur Real Estate Investment Trust’s (Sasseur Reit) manager on Tuesday reported “encouraging” first-day reopening sales at its outlet malls, which have reopened since they were shuttered amid the coronavirus outbreak.
https://www.businesstimes.com.sg/companies-markets/sasseur-reits-china-malls-reopen-to-higher-sales
https://www.straitstimes.com/business/companies-markets/sasseur-reit-sees-encouraging-reopening-sales-at-china-malls

Maybank Kim Eng stays positive on S-Reits, favours industrial Reits
Maybank Kim Eng remains positive on the outlook of Singapore real estate investment trusts (S-Reits) despite unit prices falling by around 24 per cent since February while the broad market trades at decade lows.
https://www.businesstimes.com.sg/companies-markets/maybank-kim-eng-stays-positive-on-s-reits-favours-industrial-reits

UOB sees higher credit costs, OCBC expects muted revenue following Malaysia’s lockdown
UOB, which has the largest Asean exposure of the three local banks, is expecting a greater impact on its credit costs than initially thought of, as the global novel coronavirus outbreak has caused several countries to go into lockdown mode.
https://www.businesstimes.com.sg/companies-markets/uob-sees-higher-credit-costs-ocbc-expects-muted-revenue-following-malaysias

Views, Reviews, Forum & Others

This is how Covid-19 will raze the global economy
Though the Federal Reserve moved over the weekend to slash rates and buy treasuries, markets around the world fell on Monday anyway. The coronavirus threatens to set off financial contagion in a world economy with very different vulnerabilities than on the eve of the global financial crisis 12 years ago.
https://www.businesstimes.com.sg/opinion/this-is-how-covid-19-will-raze-the-global-economy

Economic Affairs: Why the Covid-19 financial crisis will get worse
Economic policy bazookas are going off everywhere. On Sunday, the US Federal Reserve went full tilt, slashing the Fed funds rate by 1 percentage point to near zero, having already cut half a percentage point on March 3, plus taken steps to expand its balance sheet by buying bonds, as well as extending short-term credit to banks.
https://www.straitstimes.com/opinion/economic-affairs-why-the-covid-19-financial-crisis-will-get-worse

Singapore Budget 2020

90,000 employers to get $600m in wage credit payouts by March 31
Over 90,000 employers – most of them small and medium-sized enterprises (SMEs) – will get more than $600 million in payouts this month under the Wage Credit Scheme (WCS). The Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (Iras) said in a statement yesterday…
https://www.straitstimes.com/singapore/90000-employers-to-get-600m-in-wage-credit-payouts-by-march-31

Details of second economic stimulus package could be revealed soon
Manpower Minister Josephine Teo yesterday hinted that details of the second economic stimulus package could be unveiled soon. The Government is talking to businesses and unions, she said, adding: “The idea is that we won’t take too long to talk to people, to get a sense of what kind of support they need.”
https://www.straitstimes.com/singapore/details-of-second-economic-stimulus-package-could-be-revealed-soon

Update on COVID-19 (Coronavirus Disease 2019) situation

Singaporeans urged to heed advisory and defer non-essential travel
Singaporeans need to take advice not to travel very seriously, but if they still insist on doing so, they must take responsibility for their actions, said the authorities yesterday. “We have already put out the advisory to defer non-essential travel…
https://www.straitstimes.com/singapore/sporeans-urged-to-heed-advisory-and-defer-non-essential-travel
https://www.straitstimes.com/singapore/23-new-infections-in-singapore-including-17-imported-cases

Singapore not ruling out lockdown to tackle virus crisis
Singapore will not rule out a lockdown to tackle the growing threat of the coronavirus outbreak, but it is not an option currently on the cards, National Development Minister Lawrence Wong said yesterday.
https://www.straitstimes.com/singapore/spore-not-ruling-out-lockdown-to-tackle-virus-crisis

KL pledges that curbs won’t affect flow of goods to Singapore
Malaysia has assured Singapore that the flow of goods, food supplies and cargo into the Republic will continue uninterrupted despite a 14-day lockdown of its borders that begins today. Prime Minister Lee Hsien Loong received this reassurance from his Malaysian counterpart Muhyiddin Yassin yesterday…
https://www.straitstimes.com/singapore/kl-pledges-that-curbs-wont-affect-flow-of-goods-to-singapore

Singapore government to help businesses affected by Malaysia lockdown
The Singapore government is extending help to businesses affected by Malaysia’s Movement Control Order even as it is trying to negotiate for flexibility to smoothen out the transition. This assistance includes financial support of S$50 a night per worker for 14 nights, for businesses who have been affected, said Manpower Minister Josephine Teo at a press conference held by the multi-ministerial taskforce…
https://www.businesstimes.com.sg/government-economy/singapore-government-to-help-businesses-affected-by-malaysia-lockdown
https://www.straitstimes.com/singapore/10000-malaysian-workers-matched-with-temporary-housing-josephine-teo
https://www.straitstimes.com/singapore/coronavirus-singapore-government-looking-to-give-financial-help-to-companies-that-need-to

Singapore SMEs rush to house Malaysian workers for next two weeks
Companies worried about spike in running costs; MOM to provide financial support to firms affected by lockdown. As Malaysia seals itself off for two weeks starting from Wednesday, Singapore employers have welcomed the government’s offers of help with accommodating their Malaysian workers who will be unable to commute daily across the Causeway.
https://www.businesstimes.com.sg/government-economy/singapore-smes-rush-to-house-malaysian-workers-for-next-two-weeks
https://www.straitstimes.com/singapore/spore-firms-rush-to-find-temporary-lodgings-for-malaysian-workers

SGX-listed firms with Malaysian workers, plants hit by lockdown
With Malaysia’s latest movement control order set to be in place from March 18 to March 31, businesses that employ Malaysians and technology manufacturers with plants there are likely to bear the brunt of the impact, said analysts The Business Times (BT) spoke to.
https://www.businesstimes.com.sg/companies-markets/sgx-listed-firms-with-malaysian-workers-plants-hit-by-lockdown
*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 is missed out under UPDATE ON COVID-19 (CORONAVIRUS DISEASE 2019) SITUATION.