DAILY NEWS

Daily News – 23 Jul 2020 (Thu)

Singapore Real Estate

Private housing projects facing delays of six to nine months
Private home buyers looking forward to moving into their new homes may have to wait a little longer as builders are still trying to restart their construction works. Construction activity is picking up since the economy re-opened last month but delays continue as contractors have to implement health and safety measures before getting more workers on site.
https://www.businesstimes.com.sg/real-estate/private-housing-projects-facing-delays-of-six-to-nine-months

Positive outlook for infrastructure demand as countries try to boost economies
Construction companies have been hit hard by the Covid-19 pandemic, but analysts and market players said demand for infrastructure is expected to remain strong and will drive the recovery of economies and the construction sector.
https://www.businesstimes.com.sg/companies-markets/positive-outlook-for-infrastructure-demand-as-countries-try-to-boost-economies
https://www.straitstimes.com/business/innovation-challenges-launched-to-create-solutions-for-post-virus-era

Companies’ Brief

CapitaLand Mall Trust mulls over lease restructuring amid bleak Q2 results
CapitaLand Mall Trust (CMT) is considering flexible lease structures that will allow it to share risks with both existing and new tenants going forward, said Tony Tan, CEO of the Reit’s manager. “The Reit has to be more flexible and take a bit of risk on the landlord side. Hopefully, if the tenant trades well, we can participate in the upside on turnover,” he said.
https://www.businesstimes.com.sg/companies-markets/capitaland-mall-trust-mulls-over-lease-restructuring-amid-bleak-q2-results
https://www.straitstimes.com/business/companies-markets/capitaland-mall-trusts-q2-dpu-falls-277

CapitaLand Commercial Trust Q2 DPU down 23.2% to 1.69 S cents
CapitaLand Commercial Trust’s (CCT) distribution per unit (DPU) fell by 23.2 per cent to 1.69 Singapore cents for its second quarter ended June 30, from 2.20 cents a year ago. Gross revenue was down 8.1 per cent to S$92.8 million for the quarter, from S$101 million a year earlier.
https://www.businesstimes.com.sg/companies-markets/capitaland-commercial-trust-q2-dpu-down-232-to-169-s-cents
https://www.straitstimes.com/business/companies-markets/capitaland-commercial-trust-q2-dpu-down-232-on-rental-waivers-lower

Keppel Infrastructure Trust posts Q2 DPU of 0.93 Singapore cent
Keppel Infrastructure Trust (KIT) on Wednesday posted a second-quarter distribution per unit (DPU) of 0.93 Singapore cent, unchanged from a year ago, even as its distributable cash flow increased. Unitholders can expect to receive their distributions on Aug 14.
https://www.businesstimes.com.sg/companies-markets/keppel-infrastructure-trust-posts-q2-dpu-of-093-singapore-cent-0

Keppel Pacific Oak US Reit posts Q2 DPU of 1.56 US cents
Keppel Pacific Oak US Reit (KORE) on Wednesday posted a second-quarter distribution per unit (DPU) of 1.56 US cents, 4 per cent higher than a year ago. For the half year ended June 30, DPU was 3.10 US cents, a 3.3 per cent increase year on year. The distributions will be paid to unitholders on Sept 24.
https://www.businesstimes.com.sg/companies-markets/keppel-pacific-oak-us-reit-posts-q2-dpu-of-156-us-cents-0

Analysts raise target prices for Keppel DC Reit as unit price climbs
DBS Group Research, OCBC Investment Research and CGS-CIMB have increased their target prices for Keppel DC Reit, as they attempt to keep pace with the real estate investment trust’s (Reit) rise this year. OCBC on Wednesday raised its fair value for the stock to S$2.86 from S$2.54, while DBS analysts Dale Lai and Derek Tan raised their price target to S$2.80 from S$2.55.
https://www.businesstimes.com.sg/companies-markets/analysts-raise-target-prices-for-keppel-dc-reit-as-unit-price-climbs

Suntec Reit posts 31.3% drop in H1 DPU to 3.293 S cents
Suntec Real Estate Investment Trust (Suntec Reit)’s distribution per unit (DPU) fell by 31.3 per cent to 3.293 Singapore cents for the six months ended June 30, from 4.795 cents a year ago. This comprises a DPU of 1.76 cents for the three months ended March 31 and a DPU of 1.533 cents for the three months ended June 30, the real estate investment trust’s (Reit) manager said in a regulatory filing on Thursday.
https://www.businesstimes.com.sg/companies-markets/suntec-reit-posts-313-drop-in-h1-dpu-to-3293-s-cents
https://www.straitstimes.com/business/companies-markets/suntec-reit-sees-313-drop-in-first-half-dpu-retains-some-distributable

First Reit Q2 DPU plunges 79.5% to 0.44 Singapore cent amid Covid-19 challenges
The distribution per unit (DPU) of First Reit fell by 79.5 per cent to 0.44 Singapore cent for Q2 ended June 30, compared to 2.15 cents a year ago. This brings the Reit’s DPU for the first half of the year to 2.3 cents, 46.5 per cent lower than the 4.3 cents for the corresponding period last year.
https://www.businesstimes.com.sg/companies-markets/first-reit-q2-dpu-plunges-795-to-044-singapore-cent-amid-covid-19-challenges

Views, Reviews, Forum & Others

STB to trial hybrid format for two business events
Two business events, each with on-site attendance of up to 50 people, plus virtual attendance of many others, will take place in Singapore in the next two months. If successful, this hybrid format could pave the way for more of such events to be held here, said the Singapore Tourism Board (STB) yesterday.
https://www.straitstimes.com/singapore/stb-to-trial-hybrid-format-for-two-business-events

Govt, industry going ahead with investments for mid to long term: Chan Chun Sing
The government is not backing out of big-ticket investment plans for new attractions, despite the pandemic-fuelled industry downturn. Long-term developments will still be executed “as we believe that global tourism will progressively recover”, Minister for Trade and Industry Chan Chun Sing said on Wednesday.
https://www.businesstimes.com.sg/government-economy/govt-industry-going-ahead-with-investments-for-mid-to-long-term-chan-chun-sing
https://www.straitstimes.com/singapore/no-big-shifts-in-singapores-tourism-plans-for-longer-term

No mass market travel for now, Chan tells tourism firms
The gradual reopening of global tourism will be “a quality gain and not a quantity game”, Minister for Trade and Industry Chan Chun Sing said at an industry dialogue on Wednesday. He urged businesses to redesign their products in the medium term, “to leverage this demand for quality, niche-market services” and appeal to new segments – including locals.
https://www.businesstimes.com.sg/government-economy/no-mass-market-travel-for-now-chan-tells-tourism-firms

More tourism layoffs expected despite redeployment strategy
Efforts are under way to avoid “catastrophic job loss” in the ailing tourism sector, which has shed thousands of jobs this year. Even so, Minister for Trade and Industry Chan Chun Sing warned business leaders on Wednesday that…
https://www.businesstimes.com.sg/government-economy/more-tourism-layoffs-expected-despite-redeployment-strategy

Decisive policymaking crucial for economic resilience
With the spread of Covid-19 having slowed in recent months, the focus of policymakers and markets has started to shift from the immediate needs of the health crisis towards the economy. Across both developed and emerging markets we are seeing containment, albeit with uneven progress, and economies globally are starting to reopen.
https://www.businesstimes.com.sg/opinion/decisive-policymaking-crucial-for-economic-resilience

Finding profitable solutions to the problems of people and planet
The iconic deadline for many an economic plan – 2020 – is turning out more to be Year 0 as the world is being remade by the global pandemic. In six short months, entire industries have been brought to their knees, household brands made bankrupt, and more than 195 million jobs lost, according to International Labour Organization (ILO) estimates in April.
https://www.businesstimes.com.sg/opinion/finding-profitable-solutions-to-the-problems-of-people-and-planet

The coronavirus fight is far from over
The war against Covid-19 here is proceeding smoothly, mainly on three fronts. Singapore is entering its final phase of testing and clearing all foreign workers staying in dormitories of the coronavirus, which can be done possibly before mid-August.
https://www.straitstimes.com/opinion/st-editorial/the-coronavirus-fight-is-far-from-over

Staycation, F&B deals rolled out to drive local spending
Dining and staycation deals are among the 80 promotions that have been created for local residents on the new SingapoRedis-covers microsite, with more to be added over the next nine months. Precincts such as Chinatown and Little India will also be marketed as destinations for locals to rediscover, with walking tours and neighbourhood guidebooks that include shopping and entertainment options in the area.
https://www.straitstimes.com/singapore/staycation-fb-deals-rolled-out-to-drive-local-spending

Several trends for investment portfolios post-Covid-19
Many people are wondering what will the post-Covid-19 world look like. Although in the short term, the market is focused on current issues such as the reopening of economies, it is imperative for investors to position for the world after Covid-19. So what are the challenges and the opportunities?
https://www.businesstimes.com.sg/opinion/several-trends-for-investment-portfolios-post-covid-19

Singapore Budget 2020

Multi-million-dollar marketing budget may get top-up if needed
Singapore is prepared to extend the budget for its S$45 million domestic tourism campaign if needed, its tourism bureau head has said. “SingapoRediscovers”, as the nine-month push is called, is the Singapore’s third crisis-era initiative to lift the tourism industry – although it is the first to prioritise the local dollar.
https://www.businesstimes.com.sg/government-economy/multi-million-dollar-marketing-budget-may-get-top-up-if-needed
https://www.straitstimes.com/singapore/45m-campaign-launched-to-revive-local-tourism-industry

Government agencies commit S$40m to National Innovation Challenges
Enterprise Singapore (ESG), the Infocomm Media Development Authority (IMDA) and the National Research Foundation (NRF) have dedicated S$40 million in funding to National Innovation Challenges (NICs).
https://www.businesstimes.com.sg/technology/government-agencies-commit-s40m-to-national-innovation-challenges

Update on COVID-19 (Coronavirus Disease 2019) Situation

Changi Village Hawker Centre among sites visited by Covid-19 cases
Changi Village Hawker Centre has been added to the list of places visited by Covid-19 patients while they were infectious, the Ministry of Health (MOH) said yesterday. This is even as three new coronavirus clusters linked to dormitories have emerged.
https://www.straitstimes.com/singapore/changi-village-hawker-centre-among-sites-visited-by-covid-19-cases

Masagos warns against complacency as beaches get crowded
Since early this month, more popular beachfronts at East Coast Park have been segmented by the National Parks Board (NParks) to control crowds. NParks also temporarily closes sections when they get too crowded.
https://www.straitstimes.com/singapore/masagos-warns-against-complacency-as-beaches-get-crowded

New social compact needed in post-Covid-19 world: Tharman
The Covid-19 pandemic has seen governments around the world unleash unprecedented fiscal firepower to save jobs and help workers. But amid calls for the state to play a larger role, size is not all that matters – there must be a new social compact that directs markets and empowers communities towards public goals, said Senior Minister Tharman Shanmugaratnam.
https://www.straitstimes.com/politics/new-social-compact-needed-in-post-covid-19-world-tharman
https://www.businesstimes.com.sg/government-economy/new-social-compact-activist-governments-needed-for-a-post-covid-19-world-says

Buffer of hotel rooms needed for use as Covid-19 facilities
More than half of the 67,000 hotel rooms in Singapore are currently being used in the battle against Covid-19, Singapore Tourism Board (STB) chief executive Keith Tan revealed on Tuesday. Their functions include isolation and quarantine facilities, as well as accommodation for returning residents serving their 14-day stay-home notice, he told reporters during a virtual briefing on plans for a $45 million domestic tourism campaign.
https://www.straitstimes.com/singapore/buffer-of-hotel-rooms-needed-for-use-as-covid-19-facilities

Domestic campaign offers hope amid bleak outlook, say businesses
A nine-month campaign was launched yesterday to encourage locals like the Chuang family to channel some of their unused travel budgets towards local businesses, many of which are struggling to survive amid the downturn and tourist ban.
https://www.straitstimes.com/singapore/domestic-campaign-offers-hope-amid-bleak-outlook-say-businesses
*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