DAILY NEWS

Daily News – 24th January 2018

Top Story

Juggernaut sites take en bloc game to new level
Home owners are taking Singapore’s latest en bloc craze to a new level, with mega developments – sitting on sites close to or over one million sq ft each – joining the bandwagon. Owners of Mandarin Gardens, a 99-year condominium on a one million sq ft plot off East Coast Park, have given the green light to kickstart its collective sale process. It formed its collective sale committee over the weekend, and the committee is in the process of contacting marketing agents.
http://www.businesstimes.com.sg/real-estate/juggernaut-sites-take-en-bloc-game-to-new-level
http://www.todayonline.com/singapore/mandarin-gardens-forms-collective-sale-committee

Singapore Economy

11 countries, including Singapore, agree to new Trans-Pacific Partnership deal
Exactly one year to the day United States President Donald Trump withdrew his country from an ambitious Pacific Rim trade deal, the remaining 11 countries – including Singapore – agreed to move ahead on a revised version of the pact. They settled their remaining differences over the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), dubbed TPP-11, after two days of talks in Tokyo that ended on Tuesday.
http://www.businesstimes.com.sg/government-economy/11-countries-including-singapore-agree-to-new-trans-pacific-partnership-deal
http://www.straitstimes.com/asia/tpp-11-members-agree-on-deal-aim-to-sign-trade-pact-in-march

Singapore, Sri Lanka sign FTA; annual savings of S$10m expected
Singapore and Sri Lanka signed a free trade agreement on Tuesday. The deal guarantees tariff-free access for Singapore exports to Sri Lanka on 80 per cent of all tariff lines for 15 years, a statement from the Ministry of Trade and Industry (MTI) said. Singapore already applies a zero tariff rate for 99 per cent of the items listed in the tariff schedule for Sri Lankan exports to Singapore.
http://www.businesstimes.com.sg/government-economy/singapore-sri-lanka-sign-fta-annual-savings-of-s10m-expected-0
http://www.straitstimes.com/asia/se-asia/new-fta-with-sri-lanka-a-boon-for-spore-firms-large-and-small

Inflation turns positive in 2017; economists divided over pace of recovery this year
Singapore’s inflation rate turned positive last year for the first time since 2014, thanks in part to stronger economic growth. But with the pace of price increases set to remain modest this year, economists are divided over the question of how soon the central bank will move to strengthen the Singapore currency. The consumer price index – the main measure of inflation – rose 0.6 per cent in 2017, reversing two consecutive years of negative inflation.
http://www.businesstimes.com.sg/government-economy/inflation-turns-positive-in-2017-economists-divided-over-pace-of-recovery-this

CEOs’ optimism about global economy highest since 2012: PwC
A record number of business leaders are more confident about the global economy this year, though they acknowledge that global threats exist, said a survey of almost 1,300 chief executive officers worldwide by PricewaterhouseCoopers’ (PwC).
http://www.businesstimes.com.sg/government-economy/ceos-optimism-about-global-economy-highest-since-2012-pwc
http://www.straitstimes.com/business/economy/poll-global-ceos-more-upbeat-about-economy

Low inflation benefited lowest income group most
Households in the lowest income bracket benefited the most from low inflation last year, according to statistics out yesterday. Those in the middle 60 per cent and top 20 per cent experienced modest price rises.
http://www.straitstimes.com/business/economy/low-inflation-benefited-lowest-income-group-most

Changi Airport posts milestone year with 62.2 million passengers in 2017
Changi Airport, which handled a record 62.2 million passengers last year, expects traffic to continue growing this year, although the pace of growth may ease slightly from 2017. At 6 per cent, traffic growth was broad-based across the regions, but India and China – which are among Changi’s top 10 country markets – stood out in particular.
http://www.businesstimes.com.sg/transport/changi-airport-posts-milestone-year-with-622-million-passengers-in-2017
http://www.straitstimes.com/singapore/transport/changi-airport-hit-new-highs-in-2017

Singapore ranked third on Innovation Index
Score another one for Seoul while Silicon Valley slides. The US dropped out of the top 10 in the 2018 Bloomberg Innovation Index for the first time in the six years the gauge has been compiled. South Korea and Sweden retained their No. 1 and No. 2 rankings respectively.
http://www.straitstimes.com/business/economy/singapore-ranked-third-on-innovation-index
http://www.businesstimes.com.sg/technology/singapore-jumps-ahead-of-germany-switzerland-in-innovation-rankings

Carbon tax ‘works better with industry benchmarks’
A uniform carbon tax will be too blunt an instrument to yield effective results, said industry players on Tuesday as they urged the government to consider using industry benchmark targets and a differentiated approach in the implementation of the tax.
http://www.businesstimes.com.sg/government-economy/carbon-tax-works-better-with-industry-benchmarks

Singapore Real Estate

‘Long winter’ in Singapore home prices seen ending: survey
The worst may be over for Singapore’s property slump. After a four-year slide in private residential prices, analysts are now forecasting an end to the property downturn. Singapore home prices have risen for two consecutive quarters and they are expected to increase by about 5.5 per cent this year, according to a survey by Bloomberg.
http://www.businesstimes.com.sg/real-estate/long-winter-in-singapore-home-prices-seen-ending-survey
http://www.straitstimes.com/business/property/long-winter-ending-for-spore-property-market-say-analysts

Makeway View put up for collective sale at S$168m
Makeway View, a freehold residential site located in Newton, has been launched for collective sale with an asking price of S$168 million. Its marketing agent Edmund Tie & Company (SEA) said that this amount, together with about S$17 million in development charge payable, represents a land rate of S$1,589 per square foot per plot ratio (psf ppr).
http://www.businesstimes.com.sg/real-estate/makeway-view-put-up-for-collective-sale-at-s168m
http://www.straitstimes.com/business/property/makeway-view-joins-collective-sale-rush

Companies’ Brief

CapitaLand, CDL, Singtel among world’s most sustainable firms
Three Singapore companies have clinched places in the 14th annual Global 100 Most Sustainable Corporations in the World rankings by Corporate Knights Inc, although two of these companies have slipped in their rankings compared to the previous year.
http://www.businesstimes.com.sg/real-estate/capitaland-cdl-singtel-among-worlds-most-sustainable-firms
http://www.straitstimes.com/business/companies-markets/3-spore-companies-among-worlds-most-sustainable-firms

CDL extends M&C offer deadline to Jan 26
City Developments Limited (CDL) on Wednesday said it has extended the deadline for minority shareholders to accept its offer to acquire all of its London-listed Millenium & Copthorne Hotels (M&C), to Jan 26. This comes as CDL has received accepted offers representing just 44.2 per cent of shares not already owned or controlled by it.
http://www.businesstimes.com.sg/companies-markets/cdl-extends-mc-offer-deadline-to-jan-26
http://www.straitstimes.com/business/companies-markets/cdl-extends-mc-offer-deadline-to-jan-26

FCT posts 3.8% growth in Q1 DPU; it’s still eyeing acquisitions
Retail landlord Frasers Centrepoint Trust (FCT) reported a 3.8 per cent year-on-year rise in distribution per unit (DPU) to three Singapore cents for the fiscal first quarter ended Dec 31, 2017. Gross revenue for the period rose 8.7 per cent to S$47.9 million and net property income grew 9.1 per cent to S$34.5 million, thanks to higher rental revenue and higher occupancy upon the completion of an asset enhancement initiative (AEI) at Northpoint City North Wing.
http://www.businesstimes.com.sg/companies-markets/fct-posts-38-growth-in-q1-dpu-its-still-eyeing-acquisitions
http://www.straitstimes.com/business/fct-posts-38-growth-in-q1-dpu

CapitaLand Mall Trust’s Q4 DPU up 0.7%
Higher occupancy for Bugis Junction and The Atrium@Orchard gave a fillip to results for retail owner CapitaLand Mall Trust (CMT) for its fourth quarter. Distribution per unit edged up 0.7 per cent to 2.9 Singapore cents from 2.88 Singapore cents for the previous year, the group said in a Singapore Exchange filing on Wednesday morning.
http://www.businesstimes.com.sg/companies-markets/capitaland-mall-trusts-q4-dpu-up-07
http://www.straitstimes.com/business/companies-markets/capitaland-mall-trusts-q4-dpu-up-07

ESR-Reit gets nod to list 263m new shares
ESR-Reit has received in-principle approval from the Singapore Exchange to list 263 million new shares on the Mainboard in a private placement. This follows an announcement by the Reit on Dec 14, 2017, where it stated it was undertaking an equity fundraising to issue up to 263 million new units in the Reit to “rebalance” its capital structure, after acquiring an 80 per cent stake in a special-purpose vehicle (SPV) which owns a leasehold interest in 7000 Ang Mo Kio Avenue 5, Singapore 569877 for S$240 million.
http://www.businesstimes.com.sg/companies-markets/esr-reit-gets-nod-to-list-263m-new-shares

Oxley, Lian Beng, Heeton buy 50% stake in Hebei real estate JV for 100m yuan
KAP Holdings (China), a joint venture company that mixes the interests of Oxley Holdings, Lian Beng Group and Heeton Holdings, has invested 100 million yuan (S$20.6 million) to subscribe for a 50 per cent stake in Hebei Yue Zhi Real Estate Development Co, which is incorporated in China.
http://www.businesstimes.com.sg/companies-markets/oxley-lian-beng-heeton-buy-50-stake-in-hebei-real-estate-jv-for-100m-yuan

Lower rental support hits Keppel Reit’s Q4 distribution
Lower rental support made a dent in Keppel Reit’s fourth-quarter distribution. For the period ended Dec 31, 2017, distribution per unit (DPU) fell to 1.43 Singapore cents, versus 1.48 Singapore cents a year ago. This will be paid on Feb 28; it also brings total DPU for FY17 to 5.7 Singapore cents.
http://www.businesstimes.com.sg/companies-markets/lower-rental-support-hits-keppel-reits-q4-distribution
http://www.straitstimes.com/business/companies-markets/lower-rental-support-property-sale-hit-keppel-reits-q4-dpu

Suntec Reit’s DPU up 0.31% for Q4
Lower revenue from Suntec Singapore and a fall in office rentals dented retail and commercial owner Suntec Real Estate Investment Trust’s (Suntec Reit) earnings for its fourth quarter. The distribution per unit (DPU) for the fourth quarter rose 0.31 per cent to 2.604 Singapore cents from 2.596 Singapore cents for the preceding year, the group said in a Singapore Exchange filing on Wednesday morning.
http://www.businesstimes.com.sg/companies-markets/suntec-reits-dpu-up-031-for-q4
http://www.straitstimes.com/business/companies-markets/suntec-reits-dpu-up-031-for-q4

Macly Capital acquires 9 single-storey shophouses for S$35.5m
Macly Capital Pte Ltd has exercised the option to acquire nine single-storey shophouses located at Telok Kurau for a total of S$35.5 million. This reflects a land rate of S$733.8 per square foot per plot ratio, including the development charge of about S$5.9 million, said Teakhwa Real Estate Pte Ltd.
http://www.businesstimes.com.sg/real-estate/macly-capital-acquires-9-single-storey-shophouses-for-s355m

Views, Reviews & Forum

Singapore must pursue diversity for economic gain
Singapore is a shining star in several indices on business competitiveness, but when it comes specifically to diversity and economic dynamism, perhaps the cheers are politely softer. Rightly so, for the city-state can do more to show itself off as one that embraces differences for its economy’s sake.
http://www.businesstimes.com.sg/companies-markets/singapore-must-pursue-diversity-for-economic-gain

Sustaining economic dynamism not just a numbers game
Gross domestic product (GDP) growth can be seen as the sum of productivity growth and labour force growth. This means, holding productivity growth constant, a decline in labour force growth will have a direct impact on economic growth. If labour force growth falls to near zero, then the only source of GDP growth is productivity growth.
http://www.straitstimes.com/opinion/sustaining-economic-dynamism-not-just-a-numbers-game