DAILY NEWS

Daily News – 19, 20 & 21 February 2022 (Sat, Sun & Mon)

Singapore Real Estate

Revitalising Orchard Road: Some building owners trying for collective sale
Singapore – Several building owners at Orchard Road are trying their luck with collective sales, including those at strata-titled mall Midpoint Orchard which is preparing for a third en-bloc sale bid at around $350 million.
https://www.straitstimes.com/business/property/some-buildings-in-orchard-road-trying-for-collective-sale-some-take-up-uras-sweeteners-to-redevelop

Why further property tax hikes make sense
One of the first things I did after Finance Minister Lawrence Wong finished his maiden Budget speech on Friday was log into the Iras myTax Portal to check the annual value of my home. As an owner-occupier of a modest apartment in the core central region, property tax is not a particularly big expense for me.
https://www.businesstimes.com.sg/companies-markets/why-further-property-tax-hikes-make-sense

How HDB homes have been upgraded over the years
Singapore – The Home Improvement Programme (HIP), first announced in 2007 for old flats built before 1986, has seen several rounds of enhancements over the years to include more features and modern designs. The programme has also been expanded to benefit more Singapore households.
https://www.straitstimes.com/singapore/housing/how-hdb-homes-have-improved-over-the-years

Companies’ Brief

CICT issues HK$900m of 2.95% fixed rate notes due in 2031
The manager of CapitaLand Integrated Commercial Trust (CICT) said on Friday (Feb 18) that a wholly-owned subsidiary of CICT – CMT MTN – has issued HK$900 million of 2.95 per cent fixed rate notes due Feb 18, 2031 to institutional and/or sophisticated investors.
https://www.businesstimes.com.sg/companies-markets/cict-issues-hk900m-of-295-fixed-rate-notes-due-in-2031

Centurion Corporation expects at least 200% increase in FY21 net profit
Mainboard-listed Centurion Corporation said on Friday (Feb 18) that it is expecting a “substantial increase” in net profit for the full year ended Dec 31, 2021.
https://www.businesstimes.com.sg/companies-markets/centurion-corporation-expects-at-least-200-increase-in-fy21-net-profit

Koh Brothers Eco unit Oiltek launches IPO to raise S$5.2m in gross proceeds
Oiltek International, a subsidiary of Catalist-listed engineering services company Koh Brothers Eco Engineering (KBEE Group), on Friday (Feb 18) launched an initial public offering (IPO) of 22.5 million new ordinary shares at S$0.23 each.
https://www.businesstimes.com.sg/companies-markets/koh-brothers-eco-unit-oiltek-launches-ipo-to-raise-s52m-in-gross-proceeds

Green shoots for retail and hospitality S-Reits amid new pandemic phase
Singapore has announced simplified safe management measures as well as new vaccinated travel lanes (VTL) and increased VTL quotas as the country enters a new phase of dealing with the pandemic and is streamlining border measures
https://www.businesstimes.com.sg/companies-markets/green-shoots-for-retail-and-hospitality-s-reits-amid-new-pandemic-phase

Views, Reviews, Forum & Others

A push to go greener faster
Chia Ngiang Hong, President, Real Estate Developers’ Association of Singapore (REDAS)
Spiralling energy prices affect the cost of all goods and services which will filter down the economic value chain and ecosystem. With the ongoing supply chain disruptions caused by the pandemic, the sudden spikes have already driven up the costs of production and increase running costs of many businesses.
https://www.businesstimes.com.sg/views-from-the-top/a-push-to-go-greener-faster

Budget spreads fiscal burden more fairly
The guiding philosophy of the Budget presented by Finance Minister Lawrence Wong on Friday (Feb 18) highlighted the importance of having reliable streams of revenue for future needs such as building a greener city, transforming the economy, preparing the healthcare system for an ageing society, and strengthening social programmes.
https://www.straitstimes.com/opinion/st-editorial/the-straits-times-says-budget-spreads-fiscal-burden-more-fairly

Does Budget 2022 portend more taxes to come?
One of the questions surfacing since the Budget is how Singapore can better afford its own future. It was obvious from Friday’s Budget that Singapore, put simply, just does not generate enough revenue to cover the nation’s additional spending needs.
https://www.businesstimes.com.sg/opinion/does-budget-2022-portend-more-taxes-to-come

Positioning Singapore to catch the next economic sunrise
With the theme of “Charting Our New Way Forward Together”, Finance Minister Lawrence Wong’s Budget 2022 is both pivotal and forward-looking. This is the Budget that will not only take Singapore out of the pandemic with confidence, but also one that we hope will set the country on course for the future in a world marked by constant fast-paced changes and uncertainties.
https://www.businesstimes.com.sg/opinion/positioning-singapore-to-catch-the-next-economic-sunrise

Deep transformation or shallow transition?
We live in hugely uncertain times. For 2 years, Covid-19 has shocked the very systems on which we rely, overlaying and influencing a set of wide-ranging changes and transitions – both positive and negative – that were already shaping the 2020s.
https://www.businesstimes.com.sg/opinion/deep-transformation-or-shallow-transition

What the rise in carbon tax means for companies
When Singapore announced in Budget 2018 the introduction of a carbon tax from 2019, it was the first South-east Asian nation to do so. While the tax rate of S$5 per tonne of greenhouse gas emissions was not high, the coverage was broad – capturing about 80 per cent of national emissions.
https://www.businesstimes.com.sg/opinion/what-the-rise-in-carbon-tax-means-for-companies

Singapore’s Green Plan will need to fast-track initiatives while pushing for long-term ambitions
Environmental, social and governance (ESG) concerns have risen to the top of the agenda for governments and enterprises in the past year. At the recent COP26 climate summit, Singapore stated its full commitment in accelerating its transition to a low-carbon future.
https://www.businesstimes.com.sg/opinion/singapores-green-plan-will-need-to-fast-track-initiatives-while-pushing-for-long-term

A politically-safe step in the right direction
The main body of the 2022 Budget is much the same as in previous years: Steady as she goes, emphasis on upskilling, training, and opening our borders to provide fresh access to foreign talent, more inclusive green society, etc. No real evidence of a country emerging from an economic crisis.
https://www.businesstimes.com.sg/opinion/a-politically-safe-step-in-the-right-direction

Asian capital to double investment in London offices in 2022: report
Global real estate adviser Knight Frank on Friday (Feb 18) said the central London office market is likely to attract £4.1 billion (S$7.5 billion) of capital from the Asia-Pacific region in 2022, with a substantial volume to come from Singapore.
https://www.businesstimes.com.sg/global-enterprise/asian-capital-to-double-investment-in-london-offices-in-2022-report

Singapore Budget 2022

Singapore Budget 2022: Charting a new path forward
Singapore will dip into its past reserves for the third straight year to help it fund extended Covid-19 relief measures and public health safety in 2022. However, this year’s deficit will be more modest than those of the past two years as the economy recovers from the pandemic.
https://www.straitstimes.com/multimedia/graphics/2022/02/singapore-budget-revenue-and-spending-breakdown-2022/index.html?shell

Budget 2022: Businesses support Budget measures but worry about rising costs
Singapore – While business leaders and associations welcomed initiatives announced by Finance Minister Lawrence Wong to drive their operations forward, they said other measures will present roadblocks and urged the Government to help them stay on track.
https://www.straitstimes.com/singapore/budget-2022-businesses-support-budget-measures-but-worry-about-rising-costs

Budget 2022: FY2021 fiscal deficit smaller than expected at S$5b
Singapore’s fiscal deficit for FY2021 is expected to be S$5 billion or 0.9 per cent of gross domestic product (GDP), revised down sharply from earlier estimates of an S$11 billion deficit, and much smaller than FY2020’s record S$51.6 billion deficit.
https://www.businesstimes.com.sg/government-economy/budget-2022-fy2021-fiscal-deficit-smaller-than-expected-at-s5b

Budget 2022: S$6b to be drawn from past reserves for Covid-19 relief
The Singapore government has proposed to fund Covid-19 public health expenditure through a S$6 billion draw on past reserves in FY2022. President Halimah Yacob has given her in-principle support for the move.
https://www.businesstimes.com.sg/government-economy/budget-2022-s6b-to-be-drawn-from-past-reserves-for-covid-19-relief
https://www.straitstimes.com/singapore/politics/budget-2022-6b-draw-on-past-reserves-to-pay-for-covid-19-public-health-expenditure

Budget 2022: A progressive move towards greater solidarity
Though the changes in tax rates were marginal, the rhetoric was bold. In his first Budget speech, Finance Minister Lawrence Wong built upon pandemic-forged solidarity to frame the paying of taxes as not a necessary evil, but an active show of solidarity.
https://www.businesstimes.com.sg/opinion/budget-2022-a-progressive-move-towards-greater-solidarity

Budget 2022 highlights: Tax reforms to support ambitious transformation plans
Beefing up the tax system to support longer-term spending was a key and hotly anticipated theme in Finance Minister Lawrence Wong’s maiden Budget speech on Friday (Feb 18). Wong – who took up the Finance Ministry portfolio in a Cabinet reshuffle in 2021…
https://www.businesstimes.com.sg/government-economy/budget-2022-highlights-tax-reforms-to-support-ambitious-transformation-plans

Budget 2022: Singapore to explore Minimum Effective Tax Rate amid global tax developments
Singapore will need to update its corporate tax system to account for global tax developments relating to the Base Erosion and Profit Shifting initiative (BEPS 2.0), said Finance Minister Lawrence Wong in his Budget speech on Friday (Feb 18).
https://www.businesstimes.com.sg/government-economy/budget-2022-singapore-to-explore-minimum-effective-tax-rate-amid-global-tax

Budget 2022: Singapore looking to impose minimum effective tax rate of 15% on certain MNEs
[Singapore] Singapore is looking to impose a Minimum Effective Tax Rate (METR) to top up the effective tax rate of certain multinational enterprise (MNE) groups operating here to 15 per cent. The move is expected to have an impact on Singapore’s competitiveness, but experts believe other non-tax measures are likely to be introduced to make up for this.
https://www.businesstimes.com.sg/government-economy/budget-2022-singapore-looking-to-impose-minimum-effective-tax-rate-of-15-on
https://www.straitstimes.com/singapore/budget-2022-spores-tax-revenue-will-be-hit-by-international-rule-changes-republic-exploring-top-up-tax-for-mncs

Budget 2022: Quick Takes on higher property taxes for residential properties
Property tax rates for both owner-occupied and non-owner-occupied residential properties in Singapore will be revised in 2 steps, starting from 2023. For owner-occupied homes, the property tax rate will increase for the portion of the annual value in excess of S$30,000, to 6 to 32 per cent, from the current 4 to 16 per cent.
https://www.businesstimes.com.sg/government-economy/budget-2022-quick-takes-on-higher-property-taxes-for-residential-properties
https://www.businesstimes.com.sg/government-economy/budget-2022-property-tax-rates-for-residential-properties-to-go-up-from-2023
https://www.straitstimes.com/singapore/budget-2022-tax-rates-for-residential-properties-to-be-raised-as-singapore-adjusts-wealth-taxes

Budget 2022: Higher personal income taxes can be double-edged sword
While Singapore continues to study options to tax wealth effectively, it will raise the personal income tax rate of top earners with chargeable income exceeding S$500,000 from 2024 Year of Assessment (YA).
https://www.businesstimes.com.sg/government-economy/higher-personal-income-taxes-can-be-double-edged-sword
https://www.businesstimes.com.sg/government-economy/budget-2022-higher-taxes-for-top-earners-with-chargeable-income-above-s500000
https://www.straitstimes.com/singapore/budget-2022-higher-personal-income-taxes-for-top-12-of-taxpayers

Budget 2022: Tax hikes on top earners, higher-value properties, luxury cars ‘may reduce social inequality’
Singapore – Focusing on traditional means of taxing wealth by raising the highest marginal personal tax rates as well as taxes on higher-value properties and luxury car ownership could help further reduce social inequality and make the tax system more progressive and fairer, while maintaining Singapore’s competitiveness as a wealth management hub, analysts said.
https://www.straitstimes.com/business/property/tax-hikes-on-high-income-earners-higher-value-properties-and-luxury-cars-may-reduce-social-inequality

Budget 2022: Economists still see further monetary policy tightening in April despite GST hike delay
A further round of monetary policy tightening remains on the cards this April despite the Singapore government’s decision to delay the Goods and Services Tax (GST) hike until next year, according to economists.
https://www.businesstimes.com.sg/government-economy/economists-maintain-expectation-of-further-monetary-policy-tightening-in-april
https://www.businesstimes.com.sg/government-economy/singapores-gst-to-be-raised-in-2-steps-to-8-in-2023-and-9-in-2024
https://www.straitstimes.com/singapore/budget-2022-singapore-to-raise-gst-from-7-to-9-in-two-stages-in-2023-and-2024

Retailers, F&B players expect significant impact from GST rate hike
Retailers and food and beverage businesses said the goods and services tax (GST) hike will hit them hard, especially if higher prices deter consumers from spending at a time when energy and transport prices are also rising.
https://www.straitstimes.com/business/economy/retailers-fb-players-expect-significant-impact-from-gst-rate-hike

Budget 2022: What help will Singaporeans get to offset the GST hike?
Singapore – Between 2023 and 2024, Singapore’s goods and services tax (GST) will go up from 7 per cent to 9 per cent. But two programmes have been put in place to cushion the blow for ordinary Singaporeans.
https://www.straitstimes.com/singapore/budget-2022-what-help-will-singaporeans-get-to-offset-the-gst-hike

Budget 2022: S$500m to support businesses and jobs as economy recovers
The Singapore government is setting aside S$500 million to help workers and businesses still struggling as the economy recovers, Finance Minister Lawrence Wong said as he kicked off his Budget speech on Friday (Feb 18).
https://www.businesstimes.com.sg/government-economy/budget-2022-s500m-to-support-businesses-and-jobs-as-economy-recovers
https://www.straitstimes.com/singapore/budget-2022-500m-package-for-smes-to-cope-with-covid-19-challenges

Budget 2022: Foreign worker quotas cut for construction and process sectors
To reduce the construction and process sectors’ dependency on foreign workers and spur productivity improvements, the government will tighten the foreign workforce quota by reducing the dependency ratio ceiling (DRC) and replacing the man-year entitlement framework with a new levy framework.
https://www.businesstimes.com.sg/government-economy/budget-2022-foreign-worker-quotas-cut-for-construction-and-process-sectors

Budget 2022: Work pass changes expected to hit SMEs more than MNCs
Singapore’s move to tighten work pass requirements could see international firms shifting certain work functions to elsewhere in the region amid rising cost pressures, while they keep their most skilled talent in the Republic, analysts and industry groups told The Business Times.
https://www.businesstimes.com.sg/government-economy/work-pass-changes-could-shift-lower-wage-functions-out-of-singapore-smes-likely
https://www.businesstimes.com.sg/government-economy/budget-2022-minimum-salaries-for-employment-pass-s-pass-holders-to-increase-from
https://www.straitstimes.com/singapore/budget-2022-increased-salary-thresholds-for-new-ep-s-pass-applicants-not-a-shock-to-companies-but-hiring-challenges-remain

Budget 2022 paves the way for S’pore to move decisively to tackle climate crisis
Singapore – Singapore has made a number of climate commitments in recent years, but it was last Friday’s Budget speech that won the nod of approval from many climate observers here. There was ambition, outlined in Singapore’s new pledge to reach net-zero emissions “by or around” mid-century.
https://www.straitstimes.com/singapore/environment/budget-2022-offers-unexpected-but-welcome-steps-for-spore-to-tackle-climate-crisis

Budget 2022: New net zero emissions target a bold move that will create jobs
Singapore has decided to move decisively and fast-forward its ambition to achieve net-zero emissions by or around mid-century in a bid to sharpen its competitive edge and capture growth opportunities in the green transition.
https://www.businesstimes.com.sg/government-economy/budget-2022-new-net-zero-emissions-target-a-bold-move-that-will-create-jobs

Budget 2022: Carbon tax set to rise to S$50-80 by 2030; watchers call surprise move ‘bold’, ‘aggressive’
In a surprise move watchers described as “bold” and “aggressive”, the government has signalled that it will raise the carbon tax rate at least thrice within the decade, to ultimately reach S$50 to S$80 per tonne of greenhouse gas emissions by 2030.
https://www.businesstimes.com.sg/government-economy/budget-2022-carbon-tax-set-to-rise-to-s25-from-2024-s45-from-2026-s50-80-by-2030
https://www.straitstimes.com/singapore/budget-2022-large-emitters-can-buy-carbon-credits-to-offset-carbon-tax-bill-from-2024

Carbon tax hike can increase cost of living for households, even with utility rebates: Experts
Singapore – The impending carbon tax hike could bring about an increased cost of living for households over the next few years, if businesses decide to pass on their increased operating costs to consumers as they make their green transition, experts here told The Straits Times.
https://www.straitstimes.com/singapore/carbon-tax-hike-can-still-increase-cost-of-living-for-households-over-next-few-years-even-with-utility-rebates-experts

Budget 2022: Government fees, charges frozen for 1 year
The government will not increase its fees and charges for 1 year from January 2023, to help Singaporeans cope with the impending goods and service tax (GST) hike. This will apply to to licence fees, as well as fees charged by government agencies for the provision of services, such as school fees, Institute of Technical Education and polytechnic fees, and public carpark charges.
https://www.businesstimes.com.sg/government-economy/budget-2022-government-fees-charges-frozen-for-1-year

Budget 2022: New scheme to co-fund wage increases for low-wage workers
The government will co-fund wage increases for local lower-wage workers over the next 5 years, to help employers adjust as the Progressive Wage Model (PWM) gets expanded to cover more workers.
https://www.businesstimes.com.sg/government-economy/budget-2022-new-scheme-to-co-fund-wage-increases-for-low-wage-workers
https://www.straitstimes.com/singapore/budget-2022-govt-to-co-fund-wage-increases-of-local-lower-wage-workers-between-2022-and-2026

Update on COVID-19 (Coronavirus Disease 2019) Situation

15,283 new Covid-19 cases in Singapore, with 1,523 patients hospitalised
[Singapore] A total of 1,523 Covid-19 cases were in hospital on Sunday (Feb 20), up from the 1,491 on Saturday, according to the Ministry of Health’s website. This is the 16th successive day that hospitalisation numbers have exceeded the 1,000 mark.
https://www.businesstimes.com.sg/government-economy/15283-new-covid-19-cases-in-singapore-with-1523-patients-hospitalised
https://www.straitstimes.com/singapore/15283-new-covid-19-cases-in-singapore-with-1523-patients-hospitalised

Covid-19 rostered routine testing no longer needed for most fully vaccinated workers in dormitories
Singapore – Fully vaccinated migrant workers living in dormitories and workers in the construction, marine shipyard and process sectors will no longer have to undergo rostered routine testing from Friday (Feb 18).
https://www.straitstimes.com/singapore/jobs/covid-19-rostered-routine-testing-no-longer-needed-for-most-fully-vaccinated-workers-in-dormitories

S’pore’s new border measures: What you need to know if you’re fully vaccinated and travelling
From Tuesday (Feb 22), Singapore will streamline border measures and put travellers into three main groups – those taking vaccinated travel lane (VTL) flights, from places with very low risk of Covid-19 and a third general travel category.
https://www.straitstimes.com/singapore/spores-new-border-measures-what-you-need-to-know-if-youre-fully-vaccinated-and-travelling

*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