DAILY NEWS

Daily News – 2nd November 2018

Singapore Economy

Singapore firms show resurgent interest in Vietnam
Singapore firms are looking towards Vietnam again, after an earlier wave of interest was disrupted by the global financial crisis and a domestic slowdown. The pull factors this time around are Vietnam’s rising middle class, its business-friendly policies and expected gains from the United States-China trade tensions.
https://www.businesstimes.com.sg/government-economy/singapore-firms-show-resurgent-interest-in-vietnam

Singapore Real Estate

78 Shenton Way being sold to PGIM Real Estate
US-Based PGIM Real Estate is understood to have entered into a deal to buy 78 Shenton Way from a fund managed by Alpha Investment Partners. The headline price for the property, which comprises two office towers, is close to S$1,900 per square foot on net lettable area (NLA) of about 362,000 sq ft, The Business Times understands. This would translate to around S$680 million for the property, which is on a site with a balance lease term of about 64 years.
https://www.businesstimes.com.sg/real-estate/78-shenton-way-being-sold-to-pgim-real-estate

Home-sales platform paves way for paperless transactions
The home-sales platform Showsuite has launched Singapore’s first fully digitalised sales-booking platform, which could save developers and property agents hundreds of thousands of sheets of paper during the sales process for one project alone.
https://www.businesstimes.com.sg/real-estate/home-sales-platform-paves-way-for-paperless-transactions
https://www.businesstimes.com.sg/real-estate/paperless-property-sales-booking-now-a-reality-in-singapore-thanks-to-showsuite
https://www.straitstimes.com/business/property/property-sales-bookings-now-paperless-with-showsuite
https://www.straitstimes.com/business/property/paperless-property-sale-booking-made-available-with-showsuite

Companies’ Brief

Hiap Hoe buys Aloft Perth hotel and office building for A$100m
Hiap Hoe has entered into a sale and purchase agreement to acquire the 224-room Aloft Perth hotel and an office building for A$100 million (S$99.2 million) from BAAC Pty Ltd, an affiliate of Australian manufacturing, building and construction company BGC (Australia) Pty Ltd.
https://www.businesstimes.com.sg/companies-markets/hiap-hoe-buys-aloft-perth-hotel-and-office-building-for-a100m
https://www.straitstimes.com/business/companies-markets/hiap-hoe-buys-aloft-perth-hotel-and-office-building-for-a100m

Keppel Land unit converts 49% of developer Nam Long convertible bonds
Keppel Land’s indirect subsidiary Ibeworth has converted 49 per cent of its 500 billion Vietnamese dong (S$29.5 million) convertible bonds issued by housing developer Nam Long Investment Corporation (NLG) into shares of NLG, at a price of 18,142 dong per share.
https://www.businesstimes.com.sg/companies-markets/keppel-land-unit-converts-49-of-developer-nam-long-convertible-bonds
https://www.straitstimes.com/business/companies-markets/keppel-land-unit-converts-49-of-developer-nam-long-convertible-bonds

FLT buys Dutch freehold logistics property for 25.36m euros
Frasers Logistics & Industrial Trust (FLT) has acquired a freehold Dutch logistics property from Frasers Property Investments (Europe) BV, an indirect wholly owned subsidiary of its sponsor Frasers Property Ltd. The agreed property purchase price is 25.36 million euros (S$39.88 million), and the consideration for the transaction is about 24.8 million euros.
https://www.businesstimes.com.sg/real-estate/flt-buys-dutch-freehold-logistics-property-for-2536m-euros
https://www.businesstimes.com.sg/companies-markets/flt-buys-dutch-freehold-logistics-property-for-2536m-euros
https://www.straitstimes.com/business/companies-markets/flt-buys-dutch-freehold-logistics-property-for-3988m

Sembcorp Industries Q3 earnings fall 11.6% to S$82.33m
A challenging environment for its marine division put a drag on Sembcorp Industries’ earnings for the third fiscal quarter, with the conglomerate posting an 11.6 per cent drop in net profit to S$82.33 million, down from the restated S$93.14 million recorded in the year-ago period.
https://www.businesstimes.com.sg/companies-markets/sembcorp-industries-q3-earnings-fall-116-to-s8233m
https://www.straitstimes.com/business/companies-markets/sembcorp-q3-profit-down-116-with-marine-still-in-doldrums

OCBC’s all for digital transformation, but is not keen on separate digital bank
OCBC Bank’s digital transformation is bearing fruit, with more customers transacting digitally and the initiative is also helping to drive costs down, said its chief executive Samuel Tsien. But OCBC will not create digital banks, nor apply for an Internet bank licence in Hong Kong, Mr Tsien said on Thursday following the release of its Q3 results.
https://www.businesstimes.com.sg/companies-markets/ocbcs-all-for-digital-transformation-but-is-not-keen-on-separate-digital-bank
https://www.straitstimes.com/business/banking/ocbc-says-no-to-digital-bank-but-yes-to-digital-transformation-throughout-bank-ceo

OCBC’s Q3 profit jumps 12% to record S$1.25b as repricing kicks in
OCBC Bank has posted a 12 per cent jump in net profit to a record S$1.25 billion as it sold more loans at higher margins. The bank will continue to enjoy higher margins in the current quarter, and into next year, said Samuel Tsien, OCBC chief executive, on Thursday at its Q3 results briefing. Loans too will expand next year, at mid-to high single digit, moderating from expected 10 per cent growth for 2018, he said.
https://www.businesstimes.com.sg/companies-markets/ocbcs-q3-profit-jumps-12-to-record-s125b-as-repricing-kicks-in
https://www.straitstimes.com/business/companies-markets/ocbc-posts-12-rise-in-q3-profit-to-125b-on-strong-net-interest-income
https://www.channelnewsasia.com/news/singapore/ocbc-s-q3-profit-rises-12-to-record-10885908

Ascott Reit Q3 DPU increases 7.7%
Higher revenue from two acquisitions gave a fillip to serviced residence landlord Ascott Residence Trust (Ascott Reit) for its third quarter. Distribution per unit rose 7.7 per cent to 1.82 Singapore cents from 1.69 Singapore cents for the year-ago period, the group said in a Singapore Exchange filing on Thursday morning.
https://www.businesstimes.com.sg/companies-markets/ascott-reit-q3-dpu-increases-77
https://www.businesstimes.com.sg/companies-markets/ascott-reit-q3-dpu-increases-77-to-182-s-cents
https://www.straitstimes.com/business/companies-markets/ascott-reit-q3-dpu-up-77-to-182-cents-on-higher-revenue

Mapletree Logistics Trust to acquire Vietnam warehouse for S$43m
Mapletree Logistics Trust will be acquiring a warehouse in the Vietnam-Singapore Industrial Park I located in Binh Duong province, Vietnam for approximately S$43 million. Upon completion of the acquisition, the property will be leased to Unilever Vietnam for 10 years.
https://www.businesstimes.com.sg/companies-markets/mapletree-logistics-trust-to-acquire-vietnam-warehouse-for-s43m

SGX adds 10 more leveraged exposure products
Come November 7, investors in Singapore with a taste for volatile trading will have more daily leverage certificates (DLCs) to choose from. The latest batch of DLCs, which are short-term trading instruments that amplify gains or losses, comes with a fixed leverage of five times on both long or short positions, and offers exposure to 10 single stocks – six Singapore blue chips including the three banking bigwigs and four Hong Kong-listed big caps.
https://www.businesstimes.com.sg/companies-markets/sgx-adds-10-more-leveraged-exposure-products

GIC is world’s third most influential and powerful asset owner
Singapore sovereign wealth fund GIC has made a dramatic ascent to became the world’s third most influential and powerful asset owner after two large US pension funds. Led by chief executive officer Lim Chow Kiat, GIC is now third in the Chief Investment Officer (CIO) Power 100 2018, compared to 10th in 2017 and 11th in 2016.
https://www.businesstimes.com.sg/government-economy/gic-is-worlds-third-most-influential-and-powerful-asset-owner

Lawrence Wong and Seck Wai Kwong join GIC board
Singapore sovereign wealth fund GIC announced on Thursday the appointment of two new board directors. Lawrence Wong, Minister for National Development and the Second Minister for Finance, was appointed to the board on Nov 1.
https://www.businesstimes.com.sg/government-economy/lawrence-wong-and-seck-wai-kwong-join-gic-board
https://www.straitstimes.com/business/economy/lawrence-wong-and-seck-wai-kwong-join-gic-board

Chan Cheow Hoe named government chief digital technology officer
The Smart Nation and Digital Government Office has appointed Mr Chan Cheow Hoe as government chief digital technology officer. Mr Chan will concurrently continue as the deputy chief executive, productsat the Government Technology Agency of Singapore (GovTech).
https://www.straitstimes.com/business/economy/chan-cheow-hoe-named-government-chief-digital-technology-officer
https://www.straitstimes.com/business/economy/chan-cheow-hoe-named-government-chief-digital-technology-officer-by-smart-nation

Views, Reviews, Forum & Others

Independent financial advisers can no longer hedge their bets when giving opinions
In recent months, property firm Wheelock Properties and Norwegian shipyard Vard Holdings were subject to privatisation offers that involved seemingly confusing and possibly contradictory advice from the respective Independent Financial Advisers (IFAs) to their boards. If IFAs are to properly serve minority shareholders who are the ultimate recipients of IFA advice, a closer study of the two cases should prove useful.
https://www.businesstimes.com.sg/opinion/independent-financial-advisers-can-no-longer-hedge-their-bets-when-giving-opinions

Digital connectivity will enhance trade processes across Asean
As an outward looking and trade-dependent region, Asean depends on efficient movement of goods across borders to strengthen the economic integration among member economies and to link itself to the rest of the world. To that end, Asean has devoted attention to reforming and modernising the customs procedures of its member countries.
https://www.businesstimes.com.sg/opinion/digital-connectivity-will-enhance-trade-processes-across-asean

Step into post-climate change Singapore with ST’s new virtual reality project
Have you ever wondered what Singapore will be like in the next century, amid all the warnings about a world drastically altered by climate change? You can now take a step into the far future, with The Straits Times’ virtual reality (VR) project, Singapore 2100: Climate changed.
https://www.straitstimes.com/singapore/environment/step-into-post-climate-change-singapore-with-sts-new-virtual-reality-project

Robots being considered for security patrols at new Wisma Geylang Serai
While Malay heritage will be the focal point in the months-old Wisma Geylang Serai (WGS), the civic and cultural centre will also have its eye on the future. Dr Mohamad Maliki Osman, Senior Minister of State for the Ministry of Defence and the Ministry of Foreign Affairs said on Thursday (Nov 1) that autonomous robots are being considered for security patrols at the five-storey complex in Geylang Serai.
https://www.straitstimes.com/singapore/robots-being-considered-for-security-patrols-at-new-wisma-geylang-serai

New medical centre at Changi General Hospital clusters different specialties to care for complex problems
Changi General Hospital’s new medical centre housing 14 specialist clinics and centres was officially opened on Friday (Nov 2). The centre will better serve its increasingly older patients, said Health Minister Gan Kim Yong at the opening ceremony.
https://www.straitstimes.com/singapore/health/new-medical-centre-at-cgh-clusters-different-specialties-to-care-for-complex

New VivoCity library will draw 1.5m visitors: NLB
Bukit Merah Public Library will reopen as library@harbourfront in VivoCity on Jan 12. The library on the third storey of the sprawling shopping mall will draw three times as many visitors as before, the National Library Board (NLB) said this week, reiterating its view that the move will make the library easier to reach by public transport.
https://www.straitstimes.com/lifestyle/arts/new-vivocity-library-will-draw-15m-visitors-nlb

Commentary: China has outgrown the world market, needs to rebalance economy
The Sino-American trade war, initiated early this year by US President Donald Trump’s administration, is escalating rapidly. Already, the Trump administration has imposed an additional 25 per cent tariff on US$50 billion worth of Chinese goods, and an additional 10 per cent tariff on goods worth another US$200 billion.
https://www.channelnewsasia.com/news/commentary/us-china-trade-war-blessing-has-outgrown-the-world-market-10881600