DAILY NEWS

Daily News – 23rd March 2016

Singapore Economy

Budget 2016 and the remaking of Singapore’s economy
A check of articles in our database in the past year on structural challenges faced by the Singapore economy throws up quite a few. Search two years back and there are no such articles. This could be an indication that the long-term nature of these issues is coming more clearly to the fore now. Call them structural challenges or intractable problems – these are issues for which there is no overnight fix. It would be unrealistic to expect tomorrow’s Budget to address them fully and they are probably best left to the Committee on the Future Economy.
http://www.straitstimes.com/business/economy/budget-2016-and-the-remaking-of-singapores-economy

Singapore Real Estate

Observers hope Budget 2016 will address issues with Fresh Start Housing Scheme
Observers have said there are still some outstanding issues with the Fresh Start Housing Scheme that they hope can be addressed in the upcoming Budget, which is set to be delivered at 3.30pm on Thursday (Mar 24).
http://www.channelnewsasia.com/news/singapore/observers-hope-budget/2627204.html

NUS, CDL to develop green building technologies
The National University of Singapore (NUS) School of Design and Environment and City Developments Limited (CDL) will partner to promote innovations in smart, green building technologies in an initiative supported by the Singapore Economic Development Board (EDB), they said in a joint press release on Tuesday. Two new research laboratories, funded by a S$2.25 million gift from CDL, will be built to study smart building technologies for indoor and outdoor environments and to provide funding for research projects.
http://www.businesstimes.com.sg/real-estate/nus-cdl-to-develop-green-building-technologies

Up on the roof, there’s energy to be tapped
http://www.straitstimes.com/business/companies-markets/up-on-the-roof-theres-energy-to-be-tapped

Companies’ Brief

Bigger Is Better for Singapore REITs Facing Consolidation
Singapore’s real estate investment trust market is set to consolidate as smaller vehicles merge to cope with rising regulatory costs, according to Cambridge Industrial Trust. “The wave of consolidation for Singapore REITs is about to begin,” Philip Levinson, chief executive officer at Singapore-listed Cambridge Industrial, said. The trust has a market capitalization of S$730.5 million ($536 million) and focuses on industrial real estate assets.
http://www.bloomberg.com/news/articles/2016-03-22/bigger-is-better-for-singapore-reits-facingconsolidation
http://www.businesstimes.com.sg/companies-markets/singapore-reits-set-to-consolidate-to-cope-withrising-regulatory-costs-says

Good buys for Reits harder to come by with lower debt limits
THE recently enforced lower debt limit for real estate investment trusts (Reits) is making it harder for Reits to do yield-accretive acquisitions. It is a chain effect. Singapore Reits had taken advantage of the low interest rates last year to make acquisitions funded mostly by debt. This had caused many of their gearing levels to creep up.
http://www.businesstimes.com.sg/opinion/good-buys-for-reits-harder-to-come-by-with-lower-debt-limits
http://www.straitstimes.com/business/companies-markets/s-reits-back-in-favour-with-analysts