DAILY NEWS

Daily News – 2nd February 2017

Top Story

Proposed strata rule changes a nod to governance and transparency
Proposed changes to the law that governs the management and maintenance of strata properties here were announced on Wednesday, aimed at improving the governance and transparency in the management of strata-titled developments, and providing greater clarity to existing provisions. Chief among the proposals is a cap on the number of proxies one can hold during a general meeting, to prevent abuse by those who garner proxy votes to influence decision-making; allowing management corporations – commonly known as MCSTs (Management Corporation Strata Title) – the option to pay honorarium to council members; and defining what constitutes common property.
http://www.businesstimes.com.sg/real-estate/proposed-strata-rule-changes-a-nod-to-governance-and-transparency
http://www.straitstimes.com/business/plan-to-limit-proxies-one-can-hold-at-condo-meetings

Singapore Economy

Slowing growth may temper rates boost for S’pore banks: analysts
Banks are riding on a Marty McFly moment, with their shares gaining on hopes the impending rate hikes will boost results in 2017. But analysts are warning that slowing growth in the Singapore economy may cap such optimism, and are watching for such signs as Singapore banks’ fourth- quarter results are reported this month. “Back to the future,” said UBS Investment Research analyst Aakash Rawat in a report, pointing to the recent rally that has been driven by expectations of higher rates. “We remain sceptical of the impact of higher rates on banks in this stage of the credit cycle alongside falling physical property prices, high corporate leverage and a weak economy – just like it was the case in 2014.”
http://www.businesstimes.com.sg/companies-markets/slowing-growth-may-temper-rates-boost-for-spore-banks-analysts

Consumer sector still attractive, says OCBC Investment Research
OCBC Investment Research believes that the consumer sector remains an attractive space, singling out Sheng Siong as its preferred pick. “In our sector report in Nov-16, we noted that the consumer sector saw a series of privatisations and acquisitions, suggesting valuations have been generally reasonable,” wrote OCBC analysts Jodie Foo and Eugene Chua in a report. “Against this backdrop of inexpensive valuations and sound long-term growth fundamentals for Asia, consumer companies are looking beyond China and focusing on emerging markets for expansion plans,” they added.
http://www.businesstimes.com.sg/companies-markets/consumer-sector-still-attractive-says-ocbc-investment-research

Share buybacks in Jan shrink year-on-year
Listed companies in Singapore bought back about S$19.6 million worth of shares in January this year, higher than in December but lower than the roughly S$81 million worth recorded in January the previous year, the Singapore Exchange (SGX) said in a market update report on Wednesday. The five top spenders on share buybacks last month were IT firm DeClout, water treatment engineer Citic Envirotech, media group Singapore Press Holdings, utilities conglomerate Sembcorp Industries and real estate firm Second Chance Properties.
http://www.businesstimes.com.sg/companies-markets/share-buybacks-in-jan-shrink-year-on-year

Singapore Real Estate

Will Sam Goi-led consortium do bulk sale of GSH Plaza?
The refurbishment of GSH Plaza – formerly known as Equity Plaza and sitting right next to Republic Plaza in the traditional Raffles Place financial district – has been completed. However, based on caveats data, strata sales by the owner, a GSH Corporation-led consortium named Plaza Ventures, have been pretty slow. The question many observers are pondering is whether the consortium will speed things up and do a bulk sale.
http://www.businesstimes.com.sg/companies-markets/will-sam-goi-led-consortium-do-bulk-sale-of-gsh-plaza

Companies’ Brief

GLP acquires 448,000 sq ft facilities for US$33m in Chicago
Global Logistic Properties (GLP) has acquired 448,000 square feet (42,000 square metres) of distribution facilities for US$33 million in two transactions in Chicago. The buildings were acquired from institutional owners and comprise multi-tenant assets that are fully leased to new and existing GLP customers, it said in a filing to the Singapore Exchange (SGX) after market close on Wednesday. With the addition of these two facilities, GLP now owns over 11 million sq ft space in the Chicago market.
http://www.businesstimes.com.sg/companies-markets/glp-acquires-448000-sq-ft-facilities-for-us33m-in-chicago

Views, Reviews & Forum

Tax reflections for the keenly awaited Budget 2017
Singapore is, at least from a tax perspective, living in interesting times. With the Budget 2017 announcement just around the corner, it is opportune to reflect on the confluence of externalities and domestic forces that have led to this point; their impact on Singapore and some thoughts on measures that can be taken to cushion some of these forces.
http://www.businesstimes.com.sg/opinion/tax-reflections-for-the-keenly-awaited-budget-2017