DAILY NEWS

Daily News – 22 Jul 2020 (Wed)

Singapore Real Estate

Hoe Chiang Road site offered via EOI
After receiving unsolicited interest from potential buyers for 15 Hoe Chiang Road, Fragrance Group has appointed JLL to conduct an expression of interest (EOI) exercise for the freehold property. he guide price of S$715 million could translate to anywhere from S$2,138 per square foot per plot ratio (psf ppr) to S$2,877 psf ppr, depending on the redevelopment scheme a potential developer pursues.
https://www.businesstimes.com.sg/real-estate/hoe-chiang-road-site-offered-via-eoi
https://www.straitstimes.com/business/property/hoe-chiang-road-hospitality-site-up-for-sale-with-715m-guide-price

Singapore Economy

JB-Singapore rail link deal to be inked on July 30; construction to start in Jan
Malaysia and Singapore will ink agreements to finalise the much-delayed Johor Baru-Singapore Rapid Transit System (RTS) Link project on July 30, Malaysian Transport Minister Wee Ka Siong said on Tuesday. He added that both countries have completed discussions on the cross-border project, first announced in 2010, and will sign three agreements.
https://www.businesstimes.com.sg/government-economy/jb-singapore-rail-link-deal-to-be-inked-on-july-30-construction-to-start-in-jan
https://www.straitstimes.com/asia/se-asia/jb-spore-rts-link-pact-sent-to-govts-for-approval-khaw

Companies’ Brief

CapitaLand Mall Trust Q2 DPU down 27.7% to 2.11 S cents
CapitaLand Mall Trust’s (CMT) distribution per unit (DPU) fell 27.7 per cent to 2.11 Singapore cents for its second quarter ended June 30, from 2.92 cents a year ago. Gross revenue was down 39.8 per cent to S$114.1 million for the second quarter, from S$189.5 million a year earlier.
https://www.businesstimes.com.sg/companies-markets/capitaland-mall-trust-q2-dpu-down-277-to-211-s-cents
https://www.straitstimes.com/business/companies-markets/capitaland-mall-trust-q2-dpu-falls-277-to-211-cents

Chief executive of CDL’s hotel arm quits after four months
The group chief executive officer (CEO) of City Developments Limited’s (CDL) hotel arm, Millennium & Copthorne Hotels (M&C), has resigned after four months in the position, the mainboard-listed company said on Tuesday evening.
https://www.businesstimes.com.sg/companies-markets/chief-executive-of-cdls-hotel-arm-quits-after-four-months
https://www.straitstimes.com/business/companies-markets/cdls-hotel-arm-ceo-quits-after-four-months

Keppel DC Reit posts 13.6% rise in H1 DPU
Keppel Data Centre (DC) Reit on Tuesday posted a distribution per unit (DPU) of 4.375 Singapore cents for the half-year ended June 30, up 13.6 per cent from 3.85 cents a year ago. Distributable income rose 38 per cent to S$75 million, largely driven by the acquisitions of Keppel DC Singapore 4 (KDC SGP 4) and DC1 Singapore data centres in Q4 2019.
https://www.businesstimes.com.sg/companies-markets/keppel-dc-reit-posts-136-rise-in-h1-dpu-0

MIT’s DPU down 7.4% for Q1; S$7.1m withheld due to virus worries
Mapletree Industrial Trust’s (MIT) distribution per unit (DPU) stood at 2.87 Singapore cents for the first quarter ended June 30, down from 3.1 cents a year ago. This is despite distributable income rising 11.6 per cent to S$70.6 million on the back of higher net property income and distributions declared by joint ventures, partially offset by higher manager’s management fees.
https://www.businesstimes.com.sg/companies-markets/mits-dpu-down-74-for-q1-s71m-withheld-due-to-virus-worries

Perennial Real Estate’s privatisation offer turns unconditional
An offer made by a consortium of shareholders to take Perennial Real Estate Holdings private has turned unconditional, the real estate developer said in a bourse filing on Tuesday night. It also extended the date of the close of the offer from Aug 3 to Aug 17.
https://www.businesstimes.com.sg/companies-markets/perennial-real-estates-privatisation-offer-turns-unconditional
https://www.straitstimes.com/business/companies-markets/perennial-real-estates-privatisation-offer-turns-unconditional

Surbana Jurong, NTU to develop system for cleaner energy from LNG
Surbana Jurong and Nanyang Technological University (NTU) are developing an integrated urban power generation system that can harvest, store and use cold energy from the regasification of liquefied natural gas (LNG).
https://www.businesstimes.com.sg/energy-commodities/surbana-jurong-ntu-to-develop-system-for-cleaner-energy-from-lng

Real estate fund outperforms with absolute return mandate
A little-known fund investing in listed real estate securities has been quietly outperforming the relevant global real estate index, despite a relatively short track record. The Straits Global Property Strategy (SGP) fund, incepted last October, is managed by Straits Investment Management (SIM), a wholly owned subsidiary of the Straits Trading Company Ltd.
https://www.businesstimes.com.sg/wealth-investing/real-estate-fund-outperforms-with-absolute-return-mandate

Views, Reviews, Forum & Others

Singapore firms feel full force of economic shock more acutely than global peers: HSBC survey
Singapore firms feel the full force of the economic shock more acutely than their global peers, according to survey findings from HSBC released on Tuesday. It showed that 87 per cent of Singapore respondents said they felt the impact “strongly”, compared with 72 per cent of global peers.
https://www.businesstimes.com.sg/technology/singapore-firms-feel-full-force-of-economic-shock-more-acutely-than-global-peers-hsbc

SCCCI adapts to new virtual normal amid pandemic; says China is still key market
In the face of the inconveniences wrought by Covid-19, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) has gone virtual. The business organisation now offers its members online courses, digital trade fairs and consultancy services, e-introductions to opportunities abroad, and webinars in which the authorities help to explain support packages.
https://www.businesstimes.com.sg/government-economy/sccci-adapts-to-new-virtual-normal-amid-pandemic-says-china-is-still-key-market

Defaults will climb but some credit sectors are attractive
Advance estimates from the Ministry of Trade and Industry showed that the Singapore economy contracted by 41.2 per cent quarter-on-quarter (q-o-q) in the second quarter, weighed down by circuit breaker measures that were implemented from April 7 to June 1.
https://www.businesstimes.com.sg/wealth-investing/defaults-will-climb-but-some-credit-sectors-are-attractive

Safeguard workers’ employability with a skills-based approach
The Covid-19 pandemic has disrupted both the workforce and businesses. A revitalised focus on skills could be the way forward to build the resilience of the workforce and employability of individuals. Disruptions caused by the Covid-19 pandemic has displaced jobs with increased risks of unemployment should economic fallout continues.
https://www.businesstimes.com.sg/opinion/safeguard-workers-employability-with-a-skills-based-approach

Eight ways Asean consumer habits will change by 2030
While Covid-19 will cause a significant economic impact with potential gross domestic product (GDP) contractions in 2020 and likely spilling over to 2021, the long-term fundamentals of the 10 Association of Southeast Asian Nations (Asean) member states are on the cusp of a tremendous leap forward in socio-economic progress.
https://www.businesstimes.com.sg/opinion/eight-ways-asean-consumer-habits-will-change-by-2030

Asia-Pacific banks need to learn from fintechs and evolve digitally
While the world is currently experiencing unprecedented upheaval due to the Covid-19 crisis, the Asia-Pacific banking and financial services industry is reaching a tipping point in many regions, with the “digital banking revolution” on the near horizon. Banks, lenders and other financial institutions need to be prepared to make some transformative changes to stay relevant and competitive.
https://www.businesstimes.com.sg/opinion/asia-pacific-banks-need-to-learn-from-fintechs-and-evolve-digitally

MAS seeks more teeth to regulate financial services amid emerging cyber risks
The Monetary Authority of Singapore (MAS) is proposing new laws that will give it more teeth to regulate financial services in the Republic amid emerging risks, such as those brought on by the wider provision of digital services.
https://www.businesstimes.com.sg/government-economy/mas-seeks-more-teeth-to-regulate-financial-services-amid-emerging-cyber-risks
https://www.straitstimes.com/business/economy/mas-proposes-new-powers-to-reduce-risks-in-financial-sector

More than 80 hotels ready for staycations, in time for upcoming long weekends
Singapore – More than 80 hotels have been approved for staycations, the Singapore Tourism Board (STB) said on Tuesday (July 21). Hotels contacted by The Straits Times said the approvals came in time for the ongoing week-long school holiday and the two upcoming long weekends – July 31 for Hari Raya Haji and Aug 9 for National Day – when demand is expected to be strong.
https://www.straitstimes.com/singapore/more-than-80-hotels-approved-for-staycations-more-bookings-expected-for-upcoming-long

BCA to get new CEO
The Building and Construction Authority (BCA) is getting a new chief executive officer (CEO) later this year, with its current chief Hugh Lim set to relinquish his appointment on Nov 2. His successor, Kelvin Wong, will be appointed as CEO (Designate) of the statutory board from July 27 to Nov 1, before taking on the role the next day. The leadership change was announced in a news release by the Ministry of National Development (MND) and BCA on Tuesday.
https://www.businesstimes.com.sg/real-estate/bca-to-get-new-ceo
https://www.straitstimes.com/singapore/bca-to-get-new-ceo-in-nov-as-it-oversees-an-industry-in-transition

Update on COVID-19 (Coronavirus Disease 2019) Situation

Coronavirus: Average number of new community cases daily falls to 10
The average number of new daily coronavirus patients in the community has been steadily falling, with yesterday being the eighth day in a row that the figure has decreased. Last night, the Ministry of Health (MOH) said that the figure in the past week has dropped to 10 cases, from 13 cases two weeks ago.
https://www.straitstimes.com/singapore/health/average-number-of-new-community-cases-daily-falls-to-10

Coronavirus: How rules on social gatherings have changed since circuit breaker
Social gatherings were banned under circuit breaker rules to curb the spread of Covid-19. The ban continued in phase one of the economic reopening, but was eased with phase two on June 19. Here is a look at how the rules have changed:
https://www.straitstimes.com/singapore/health/how-rules-on-social-gatherings-have-changed-since-circuit-breaker

Singapore’s largest dormitory with 16,000 workers cleared of coronavirus
Singapore’s biggest dormitory for migrant workers has been declared free of the coronavirus after it had recorded one of the earliest and largest clusters among dorms. Sungei Tengah Lodge was one of 69 more dorms of various types cleared by the Ministry of Manpower (MOM) as of yesterday, bringing the total number cleared to 891.
https://www.straitstimes.com/singapore/manpower/spores-largest-dorm-with-16000-workers-cleared-of-virus
*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