DAILY NEWS

Daily News – 2nd August 2018

Singapore Economy

More scope for Singapore and Argentina to collaborate on food, technology: Chan Chun Sing
There is growing potential for Singapore and Argentina to collaborate in the areas of food and technology, said Minister for Trade and Industry Chan Chun Sing on Wednesday. He was speaking at the Argentina-Singapore business forum held at the Enterprise Singapore premises in Bugis.
https://www.businesstimes.com.sg/government-economy/more-scope-for-singapore-and-argentina-to-collaborate-on-food-technology-chan
https://www.straitstimes.com/business/room-for-more-spore-argentina-tie-ups

E-commerce propels Singapore smes to lead APAC exporters
Small and medium-sized enterprises (SMEs) in Singapore were the top exporters by revenue in Asia Pacific last year, according to a study commissioned by FedEx Express. For 2017, they each generated an average annual exporting revenue of US$1.75 million, ahead of the US$1.21 million average recorded across countries in APAC.
https://www.businesstimes.com.sg/sme/e-commerce-propels-singapore-smes-to-lead-apac-exporters
https://www.straitstimes.com/business/economy/singapore-smes-top-exporters-in-asia-pacific-fedex-survey

Google opens third data centre in Singapore’s Jurong West
US Internet giant Google announced on Wednesday that it will build a third data centre in Singapore to meet rapid user growth in the region, bringing its total long-term investment in such facilities here to US$850 million. A Google spokesman told The Business Times that this latest data centre adds another US$350 million to its spending in Singapore.
https://www.businesstimes.com.sg/government-economy/google-opens-third-data-centre-in-singapores-jurong-west
https://www.straitstimes.com/business/companies-markets/google-investing-476m-to-build-third-data-centre-in-spore

KL yet to propose date for HSR talks: S’pore ministry
Singapore welcomes Malaysia’s suggestion to start discussions on the future of the Kuala Lumpur-Singapore High-Speed Rail (HSR), but has yet to receive a proposed meeting date, the Ministry of Transport (MOT) said yesterday. Its spokesman said in a statement that Singapore had received a letter from Malaysian Economic Affairs Minister Mohamed Azmin Ali dated July 23. In the letter, Datuk Seri Azmin said the Malaysian government was studying the 350km rail project and will commence discussions with Singapore soon.
https://www.straitstimes.com/singapore/transport/kl-yet-to-propose-date-for-hsr-talks-spore-ministry
https://www.channelnewsasia.com/news/singapore/malaysia-has-not-proposed-meeting-date-with-singapore-hsr-rts-10581234
https://www.todayonline.com/singapore/malaysia-yet-propose-meeting-date-hsr-discussions-mot
https://www.todayonline.com/world/hsr-meeting-likely-early-august-spores-july-31-deadline-only-suggestion-says-msian

Singapore Real Estate

Robinson 77 put on the market by CLSA
Riding on the current buoyant Singapore office market, a fund managed by CLSA Real Estate has put Robinson 77 up for sale. If a deal materialises by year-end at the expected price of more than S$725 million (or S$2,357 psf on net lettable area), this would most likely be the largest Singapore office sale for 2018.
https://www.businesstimes.com.sg/real-estate/robinson-77-put-on-the-market-by-clsa

Brookvale Park en bloc bid latest to be headed to court
The collective sale of Brookvale Park in Sunset Way, issued a “stop” order by the Strata Titles Board (STB) on Wednesday, is likely headed to court. This follows the failure of STB’s mediation on June 12 and July 24 to get seven owners to withdraw their objections to the sale of the development for S$530 million.
https://www.businesstimes.com.sg/real-estate/brookvale-park-en-bloc-bid-latest-to-be-headed-to-court

Windy Heights owners cutting reserve price in fresh en-bloc bid
Windy Heights made another stab at a collective sale on Wednesday, with home owners now seeking to reduce the reserve price for the tender. The freehold District 14 development in Jalan Daud in the Kembangan area is going on the market again – mere months after an unsuccessful tender closed in April, and hot on the heels of the surprise property-cooling measures that kicked in on July 6.
https://www.businesstimes.com.sg/real-estate/windy-heights-owners-cutting-reserve-price-in-fresh-en-bloc-bid
https://www.straitstimes.com/business/property/windy-heights-has-another-go-at-collective-sale

‘Rare strata office portfolio’ in Tanjong Pagar on the market
A “rare strata office portfolio” in the Tanjong Pagar area has been launched for sale via an expression of interest (EOI) exercise, commercial real estate services and investment firm CBRE announced on Wednesday. The portfolio comprises a podium block and four office floors in GB Building, a 26-storey commercial building at the junction of McCallum Street and Cecil Street.
https://www.businesstimes.com.sg/real-estate/rare-strata-office-portfolio-in-tanjong-pagar-on-the-market

8-storey Mohd Sultan Rd project put up for sale for S$30m
A development under construction at 21/23 Mohamed Sultan Road, consisting of an eight-storey residential block and adjoining commercial building, has been put up for sale by tender by its owner, a privately held investment holding company. The indicative price for the property is about S$30 million, said its sole marketing agent, SRI (Singapore Realtors Inc).
https://www.businesstimes.com.sg/real-estate/8-storey-mohd-sultan-rd-project-put-up-for-sale-for-s30m
https://www.straitstimes.com/business/property/mohamed-sultan-road-project-on-sale-at-30m

Farewell to Raffles Country Club, as SLA acquires land amid uncertainty over HSR project
Singapore – Despite lingering uncertainty over the Kuala Lumpur–Singapore High Speed Rail (HSR) project, the Government on Wednesday (Aug 1) proceeded with its acquisition of the land that Raffles Country Club (RCC) sits on. In January 2017, the Government announced that RCC would be the second club after Jurong Country Club to make way for the HSR’s facilities. The site will also house the future Cross Island Line’s (CRL) western depot.
https://www.todayonline.com/singapore/farewell-raffles-country-club-sla-acquires-land-amid-uncertainty-over-hsr-project

Companies’ Brief

Leading lights in corporate governance
Resorts World Sentosa was the venue of several coronations on July 18 this year, with the Who’s Who of the local business scene showing up for the prestigious 13th annual Singapore Corporate Awards.
https://www.businesstimes.com.sg/companies-markets/singapore-corporate-awards-2018/leading-lights-in-corporate-governance

Frasers Logistics & Industrial Trust Q3 DPU up 2.9%
Frasers Logistics & Industrial Trust (FLT) posted a 2.9 per cent rise in distribution per unit (DPU) to 1.8 Singapore cents for the fiscal third quarter ended June 30, it announced on Wednesday night after the market closed. The reit’s gross revenue for the quarter was up 22.6 per cent to A$49.3 million, from A$40.2 million for the year-ago period. Adjusted net property income was up 27.4 per cent to A$39.3 million from A$30.8 million previously.
https://www.businesstimes.com.sg/companies-markets/frasers-logistics-industrial-trust-q3-dpu-up-29

Ascott adds 2 Citadines Viet properties
The Ascott Ltd – the wholly-owned serviced residence arm of CapitaLand – has opened two new Citadines Apart’Hotel properties in Vietnam. The first is the 548-unit Citadines Blue Cove Danang, which is The Ascott’s first property in the coastal city, located by the Han River. It is also The Ascott’s largest property in the world and the largest serviced residence in Vietnam.
https://www.businesstimes.com.sg/real-estate/ascott-adds-2-citadines-viet-properties
https://www.straitstimes.com/business/companies-markets/ascott-opens-two-properties-in-vietnam

Boustead inks deal to develop integrated production and warehouse facility for long-term lease to Amcor
Boustead Development Partnership (BDP) has secured a development contract for a new integrated production and warehouse facility, Boustead Projects announced on Wednesday. BDP is a co-investment partnership between mainboard-listed Boustead Projects and the Abu Dhabi Investment Council.
https://www.businesstimes.com.sg/companies-markets/boustead-inks-deal-to-develop-integrated-production-and-warehouse-facility-for

OUE Lippo Healthcare Q2 loss narrows to S$2.9m
OUE Lippo Healthcare saw its loss for the second quarter ended June 30 narrow year-on-year to S$2.9 million from S$20.6 million, due to the absence of an impairment loss incurred in the year-ago period, the group announced after the market closed on Wednesday.
https://www.businesstimes.com.sg/companies-markets/oue-lippo-healthcare-q2-loss-narrows-to-s29m

BreadTalk Q2 net profit up 10.5% to S$2.4m
Breadtalk Group’s net profit rose 10.5 per cent to S$2.4 million for the second quarter ended June 30, from S$2.2 million in the year-ago period, it announced on Wednesday after the market closed. Revenue for the quarter was flat at S$148.8 million, compared to S$147.7 million in the year-ago period. Growth in the Food Atrium, restaurant and 4orth Food Concepts divisions made up for a 5.2 per cent decrease in revenue from the bakery business, attributed to lower revenue from directly-operated stores in Shanghai, Beijing and Hong Kong, and franchise stores in China.
https://www.businesstimes.com.sg/companies-markets/breadtalk-q2-net-profit-up-105-to-s24m
https://www.straitstimes.com/business/companies-markets/company-briefs-breadtalk-group-0

Hour Glass Q1 net profit more than doubles to S$14.3m
Luxury watch retailer The Hour Glass saw profit more than double to S$14.3 million for the fiscal first quarter ended June 30, up from S$7 million in the year-ago period, thanks to gross margin improving to 24.4 per cent from 21.2 per cent previously. Revenue for the quarter was up 10 per cent to S$180.7 million from S$164.4 million, as sentiment improved in some markets in the region, said The Hour Glass in its results announcement after the market closed on Wednesday.
https://www.businesstimes.com.sg/companies-markets/hour-glass-q1-net-profit-more-than-doubles-to-s143m
https://www.straitstimes.com/business/companies-markets/hour-glass-q1-profit-more-than-doubles-to-143m

Views, Reviews, Forum & Others

Is this the sound of a residential property market dying?
Friday, July 6: After a few years of drought in the residential property market, the heavens opened a few months back and rained en bloc sales, to the excitement of a market that had been turning frigid from inactivity. But July 6 was a maelstrom for a different reason: The shock announcement the day before – that of an increased Additional Buyer’s Stamp Duty (ABSD) and Loan-to-Value (LTV) limits on housing loans – had some of our clients calling emergency board meetings to decide if they should pull the plug on pending real-estate purchases. The additional five per cent payable was enough to make developers rethink their strategies, so thin were their profit margins.
https://www.businesstimes.com.sg/opinion/is-this-the-sound-of-a-residential-property-market-dying

Mix of home sizes to meet housing needs
We thank Mr Toh Cheng Seong for his letter (Address root cause of housing issue; July 22). Contrary to Mr Toh’s statement, shoebox units (those under 50 sq m in size) make up less than 30 per cent of the units in the majority of new developments approved over the past decade. Also, about 75 per cent of these shoebox units are owned by Singaporeans.
https://www.straitstimes.com/forum/letters-in-print/mix-of-home-sizes-to-meet-housing-needs

Don’t let Ubin become an industrial or military island
I was concerned to read that Pulau Ubin is the last offshore village of Singapore, after islanders living on Pulau Seking were relocated for a landfill operation (Pulau Seking: Once a kampung island; July 30). Pulau Ubin must not meet the same end.
https://www.straitstimes.com/forum/letters-in-print/dont-let-ubin-become-an-industrial-or-military-island