DAILY NEWS

Daily News – 21 Jul 2020 (Tue)

Singapore Real Estate

Balestier Road mixed-use building up for sale with S$22m guide price
A freehold four-storey commercial and residential building at 320 Balestier Road has been launched for sale via expression of interest. The guide price is S$22 million, Showsuite Consultancy announced on Monday.
https://www.businesstimes.com.sg/real-estate/balestier-road-mixed-use-building-up-for-sale-with-s22m-guide-price-0

Trio of Geylang shophouses on market with S$12m guide price
Three adjoining conservation shop-houses at 223, 225 and 227 Geylang Road are up for sale collectively by expression of interest, with a guide price of S$12 million, exclusive marketing agent CBRE said on Monday. The freehold, two-storey shophouses sit on a combined site of about 4,318 square feet (sq ft), with a total built-up area of about 6,754 sq ft.
https://www.businesstimes.com.sg/real-estate/trio-of-geylang-shophouses-on-market-with-s12m-guide-price

PIL Building put on the market with S$350m guide price; EOI draws strong interest
PIL Building in Cecil Street – ultimately fully owned by the same entity that controls struggling Pacific International Lines (PIL) – has been quietly put on the market through an expression of interest (EOI) exercise that closed last Friday.
https://www.businesstimes.com.sg/real-estate/pil-building-put-on-the-market-with-s350m-guide-price-eoi-draws-strong-interest

Singapore Economy

Singaporeans expect headline inflation to fall to 3% this year, says poll
Inflation in Singapore is expected to remain at low levels for the year, a trend which DBS chief economist Taimur Baig has said is “consistent with the continuation of accommodating fiscal and monetary policy” this year and the next.
https://www.businesstimes.com.sg/government-economy/singaporeans-expect-headline-inflation-to-fall-to-3-this-year-says-poll

Companies’ Brief

CDL Hospitality Trusts expects 60% to 70% drop in H1 distribution
Preliminary estimates suggest the trust’s total return after tax for the first half will record a marginal loss, versus the $30.6 million profit recorded last year. It will book one-off winding-down costs from the divestment of Novotel Singapore Clarke Quay, which closed on July 15. Excluding the one-off expenses, the total return may register a slight profit in the first half, the managers said.
https://www.straitstimes.com/business/cdl-hospitality-trusts-expects-60-to-70-drop-in-h1-distribution

First Reit extends rental relief, flags 40-50% drop in distribution income for half-year
First Reit’s manager issued a profit warning late on Monday (July 20) that it is expecting a year-on-year decline of 40 to 50 per cent in its available distribution income to unit holders for the six months ending June 30 in its upcoming half-year results.
https://www.straitstimes.com/business/companies-markets/first-reit-extends-rental-relief-flags-40-50-drop-in-distribution-income
https://www.businesstimes.com.sg/companies-markets/first-reit-to-extend-rental-relief-but-manager-sounds-profit-warning-in-h1-results

Keppel Reit’s Q2 DPU up 0.7% at 1.4 Singapore cents
Keppel Reit (Real Estate Investment Trust) declared a distribution per unit (DPU) of 1.40 Singapore cents for the second quarter ended June 30, a notch above its DPU of 1.39 Singapore cents from the same period a year ago.
https://www.businesstimes.com.sg/companies-markets/keppel-reits-q2-dpu-up-07-at-14-singapore-cents

MLT’s Q1 DPU up one per cent at 2.045 Singapore cents
Mapletree Logistics Trust (MLT) has declared a distribution per unit (DPU) of 2.045 Singapore cents for its first quarter ended June 30 June, up one per cent from 2.025 cents in the year-ago period. Distributable income grew 5.7 per cent to S$77.8 million, said the company in a release of its results after trading hours on Monday.
https://www.businesstimes.com.sg/companies-markets/mlts-q1-dpu-up-one-per-cent-at-2045-singapore-cents

Sabana Reit has more to gain in proposed merger with ESR-Reit
It is not every day that an underdog in the Singapore Reit (S-Reit) sector with one of the smallest market capitalisations can vault onto the road to index inclusion with the help of a sister Reit under the same sponsor.
https://www.businesstimes.com.sg/companies-markets/sabana-reit-has-more-to-gain-in-proposed-merger-with-esr-reit

Views, Reviews, Forum & Others

A refined ‘Gift’ for a changed world
The Governance Index for Trusts (Gift) was launched in 2017 as a dedicated index for assessing the governance and business risk of real estate investment trusts (Reits) and business trusts (BTs). It recognises the unique features which set these trusts apart from other listed issuers which are companies.
https://www.businesstimes.com.sg/opinion/a-refined-gift-for-a-changed-world

Global market rally may not be irrational
Economic activity over the past few months has plummeted to levels we have not seen in my lifetime, both in Singapore and globally. Despite this, the global stock markets are in the midst of a remarkable rally. For the first time in history, a bear market, defined as a 20 per cent or larger fall, was followed by a bull market, a 20 per cent or larger rise, in consecutive months. This happened in March and April.
https://www.businesstimes.com.sg/opinion/global-market-rally-may-not-be-irrational

Cyber resilience key as SMEs step up digitalisation efforts
As more and more Small and Medium Enterprises in Singapore step up their digitalisation efforts with the help of government grants, it is important not to ignore the cyber threats that they may face, especially as many employees continue to work remotely.
https://www.businesstimes.com.sg/sme/cyber-resilience-key-as-smes-step-up-digitalisation-efforts

Pandemic has sped up digital transformation in firms: Study
The coronavirus pandemic has significantly accelerated digital transformation in companies, a study noted today. It found that around 70 per cent of those polled here and across the world believe that the crisis stemming from Covid-19 has forced their business to move much quicker in adopting online tools.
https://www.straitstimes.com/business/companies-markets/pandemic-has-sped-up-digital-transformation-in-firms-study

New training scheme by Google, govt agencies for 3,000 job seekers in Singapore
Google has joined hands with three government agencies – the Economic Development Board (EDB), Infocomm Media Development Authority (IMDA) and SkillsFuture Singapore (SSG) – to launch a new jobs and skills initiative for 3,000 local entry-level and mid-career job seekers.
https://www.businesstimes.com.sg/government-economy/new-training-scheme-by-google-govt-agencies-for-3000-job-seekers-in-singapore
https://www.straitstimes.com/business/new-jobs-and-training-initiative-by-google-and-government-agencies-will-benefit-around-3000

Airline bankruptcies and job cuts expected, say experts
The hope of a quick turnaround in the global aviation sector – already dim – has become even dimmer with the global Covid-19 situation going from bad to worse. More airline bankruptcies and job cuts are likely to be in the pipeline in the coming months once government support is reduced.
https://www.straitstimes.com/singapore/transport/airline-bankruptcies-and-job-cuts-expected-say-experts

Pandemic inadvertently helps Opec win market battle
Covid-19 continues to take an economic and emotional toll globally, but it has also inadvertently helped the Organization of the Petroleum Exporting Countries (Opec) finally win its long-drawn battle for oil market share and influence.
https://www.businesstimes.com.sg/opinion/pandemic-inadvertently-helps-opec-win-market-battle

Acra seeking public feedback on proposed changes to Companies Act
The Accounting and Corporate Regulatory Authority (Acra) on Monday said it is seeking public feedback on proposed amendments to the Companies Act. The Companies Act Working Group (CAWG), which was set up by Acra in 2018 to review several areas of the Act, has recommended 36 legislative reforms.
https://www.businesstimes.com.sg/companies-markets/acra-seeking-public-feedback-on-proposed-changes-to-companies-act-0
https://www.straitstimes.com/business/acra-seeks-public-feedback-on-changes-to-companies-act

JTC launches tender to help companies adopt solar energy
Industrial landlord JTC Corporation has launched a tender to help companies adopt solar energy and make its industrial estates more environmentally friendly. This initiative aims to fast-track solar power adoption on the rooftops of 50 JTC buildings as well as those of JTC’s lessees, spanning about 18ha.
https://www.straitstimes.com/business/jtc-launches-tender-to-help-companies-adopt-solar-energy

Update on COVID-19 (Coronavirus Disease 2019) Situation

More Orchard Rd malls added to list of places visited by infectious patients
More malls in Orchard Road, including Orchard Central, Orchard Gateway, Lucky Plaza and Plaza Singapura, have been added to the list of places visited by Covid-19 patients while they were infectious, said the Ministry of Health (MOH) yesterday.
https://www.straitstimes.com/singapore/health/more-orchard-rd-malls-added-to-list-of-places-visited-by-infectious-patients

Scientists warn of premature optimism as drugmakers rally
There is big money to be made in producing a vaccine for Covid-19, and investors’ interest in which pharmaceutical and biotech company will cross the finish line first is causing a global rally in these stocks.
https://www.businesstimes.com.sg/companies-markets/scientists-warn-of-premature-optimism-as-drugmakers-rally

Creating Covid-19 vaccine not easy despite 2,000 ongoing clinical trials: scientists
There are currently more than 2,000 registered clinical trials for Covid-19 vaccines and treatments being tested on humans, and a successful one will likely come only next year. Most are only testing for safety and the ability to produce an immune response now, and not yet on efficacy against the virus, scientists and analysts say.
https://www.businesstimes.com.sg/government-economy/creating-covid-19-vaccine-not-easy-despite-2000-ongoing-clinical-trials

Competition watchdog allows tie-ups on essential supplies during pandemic
The Competition and Consumer Commission of Singapore (CCCS) will “generally” not investigate certain collaborations between competitors when it comes to the supply of essential goods or services in Singapore, amid the ongoing novel coronavirus outbreak.
https://www.businesstimes.com.sg/government-economy/competition-watchdog-allows-tie-ups-on-essential-supplies-during-pandemic
https://www.straitstimes.com/singapore/easier-for-firms-to-join-forces-in-pandemic

Raising workers’ dorm standards: Who pays?
Many commentators agree that housing standards for migrant workers should be improved. But who pays for such improvements? Economic theory predicts that most times, workers bear the brunt of such changes.
https://www.straitstimes.com/opinion/raising-workers-dorm-standards-who-pays

Coronavirus: Travellers can check Iata map for info on travel curbs, precautions
Travellers looking to find out about travel restrictions and precautions in place worldwide can turn to an interactive map set up by the International Air Transport Association (Iata). The map taps information from an Iata database named Timatic, said the industry group.
https://www.straitstimes.com/singapore/transport/travellers-can-check-iata-map-for-info-on-travel-curbs-precautions
*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