DAILY NEWS

Daily News – 24th July 2018

Singapore Economy

Consumer price index rises 0.6% in June
Overall inflation growth came in higher last month, mainly on increasing food and services prices, according to the Department of Statistics yesterday. The consumer price index (CPI) rose by 0.6 per cent on the previous year – up from a gain of 0.4 per cent the month before – and in line with analyst expectations, as polled by Bloomberg. Core inflation, which strips out accommodation and private road transport costs, also grew at a faster clip. It came in 1.7 per cent higher than last year.
https://www.straitstimes.com/business/consumer-price-index-rises-06-in-june
https://www.businesstimes.com.sg/infographics/singapore%E2%80%99s-headline-cpi-up-in-june-core-inflation-above-expectations
https://www.channelnewsasia.com/news/singapore/singapore-s-inflation-rises-to-0-6-year-on-year-in-june-highest-10554810
https://www.todayonline.com/singapore/inflation-slows-lower-income-group-hardest-hit-higher-cost-living

Singapore Real Estate

Singapore hotels the clear winners in Trump-Kim Summit
The June meeting between US President Donald Trump and North Korean leader Kim Jong Un has proven an unequivocal success – for Singapore’s hoteliers that is. Hotel occupancy in the South-east Asian city-state reached 81 per cent in the April-to-June period, higher than the average 70 per cent in Asia-Pacific and Singapore’s best second-quarter rate since 2013, according to research firm STR.
https://www.businesstimes.com.sg/real-estate/singapore-hotels-the-clear-winners-in-trump-kim-summit
https://www.straitstimes.com/business/property/one-clear-winner-emerges-from-trump-kim-summit-singapore-hotels
https://www.todayonline.com/singapore/singapore-hotels-clear-winners-emerged-trump-kim-summit

Sutton Place up for collective sale with S$268m reserve price
The owners of Sutton Place, a freehold development off Farrer Road, have put the property up for collective sale by tender, with a reserve price of S$268 million. At that price, the land rate for the site works out to S$1,917 per square foot per plot ratio, after factoring a development charge of about S$17.88 million, which is subject to confirmation from the relevant authorities, said Knight Frank Singapore, its sole marketing agent.
https://www.businesstimes.com.sg/real-estate/sutton-place-up-for-collective-sale-with-s268m-reserve-price
https://www.straitstimes.com/business/property/sutton-place-up-for-sale-en-bloc-at-268m

URA orders more detailed survey on Airbnb-type home rentals
The Urban Redevelopment Authority (URA) has commissioned a “more detailed survey” of Singaporeans’ views on short-term accommodation, after a public consultation earlier this year yielded mixed results. The survey, to be conducted by a research firm, will complement feedback obtained through the public consultation exercise and meetings with stakeholders, URA said.
https://www.businesstimes.com.sg/real-estate/ura-orders-more-detailed-survey-on-airbnb-type-home-rentals
https://www.straitstimes.com/singapore/housing/ura-to-seek-more-detailed-views-on-airbnb-style-stays

Tan Kok Quan’s Marina Chin joins SLA board
Ms Marina Chin, a joint managing partner at Tan Kok Quan Partnership, has been appointed a board member by the Singapore Land Authority (SLA) for a two-year term starting next month. She is the co-head of the Singapore-based law firm’s disputes practice.
https://www.straitstimes.com/business/property/tan-kok-quans-marina-chin-joins-sla-board

Companies’ Brief

MLT’s 1Q DPU up 3.7%; revenue rises 10.1%
Mapletree Logistics Trust’s (MLT) distribution per unit (DPU) for the first quarter ended June 30 increased 3.7 per cent to 1.957 Singapore cents, with a better performance and new acquisitions in Hong Kong giving the topline a boost. Revenue for Q1 FY18/19 grew 10.1 per cent year-on-year to S$105.44 million, while net property income saw an 11.1 per cent rise in tandem to S$89.8 million.
https://www.businesstimes.com.sg/companies-markets/mlts-1q-dpu-up-37-revenue-rises-101
https://www.straitstimes.com/business/mapletree-logistics-trusts-q1-dpu-up-37

Amara’s Chan Yean Chun crosses to Oxley as CFO
Developer Oxley Holdings has hired former Amara Holdings group financial controller Chan Yean Chun as chief financial officer and company secretary. Ms Chan will replace outgoing financial controller and company secretary Ooi Chee Eng, who has resigned to “pursue other career opportunities”, Oxley said in announcements through the Singapore Exchange over the weekend.
https://www.businesstimes.com.sg/companies-markets/amaras-chan-yean-chun-crosses-to-oxley-as-cfo

Ascott Reit Q2 DPU flat at 1.84 S cents; revenue up 6%
Ascott Residence Trust’s distribution per unit (DPU) stayed flat at 1.84 Singapore cents for the second quarter ended June 30, the residential real estate investment trust (Reit) announced on Tuesday morning. If year-ago results were restated to account for a rights issue, through which 481.7 million units were issued on April 11 last year, DPU would have slipped 16 per cent from 2.18 Singapore cents.
https://www.businesstimes.com.sg/companies-markets/ascott-reit-q2-dpu-flat-at-184-s-cents-revenue-up-6
https://www.straitstimes.com/business/companies-markets/ascott-reit-q2-dpu-flat-at-184-cents-revenue-up-6

Wee Hur to sell Brisbane plot for A$79 million
Wee Hur Holdings’ sale of a plot of land encompassing 62-80 Ann Street and 71-97 Turbot Street in Brisbane to Mirvac Office Developments will take place on Aug 16, a month after its buyer exercised its call option on July 17. Wee Hur (Ann Street), a subsidiary of Wee Hur Holdings, executed the contract on July 23, according to a Singapore Exchange filing on Monday.
https://www.businesstimes.com.sg/real-estate/wee-hur-to-sell-brisbane-plot-for-a79-million

SMJ International planning acquisition of stake in China hotel management group
SMJ International Holdings is proposing to acquire a stake in hotel management group Beijing Libre Commercial Management Co. Its wholly owned subsidiaries, Elite Management (Singapore) (EMSP) and Beijing Zhuoyue Tiancheng Business Management Co (BJZY), have entered into two agreements in relation to the proposed acquisition of Beijing Libre.BJZY will acquire 52 per cent of the enlarged equity interest in Libre Beijing for 15.59 million yuan (S$3.18 million), while the balance 48 per cent will be owned by Zhang Li.
https://www.businesstimes.com.sg/companies-markets/smj-international-planning-acquisition-of-stake-in-china-hotel-management-group

Yoma Strategic posts S$15.9m Q1 loss due to currency translation losses
Myanmar-focused Yoma Strategic Holdings fell into a loss of S$15.9 million for the three months ended June 30, 2018, as the stronger US dollar resulted in a S$11.3 million currency translation loss from its US dollar-denominated borrowings. This first quarter loss, from a net profit of S$3.9 million for the same period a year before, came despite a 13.9 per cent growth in revenue to S$29.4 million from S$25.8 million previously.
https://www.businesstimes.com.sg/companies-markets/yoma-strategic-posts-s159m-q1-loss-due-to-currency-translation-losses
https://www.straitstimes.com/business/companies-markets/yoma-strategic-sees-159m-q1-loss-on-currency-translation-losses

Views, Reviews, Forum & Others

Seeding interest in green estates
Last Wednesday, the Housing Board announced that new housing estates will become greener. Trees and gardens are already aplenty in estates, so how will the changes be different? Under an updated Biophilic Town Framework, the planning stage of future estates will now include a deliberate effort to incorporate nature holistically into projects like never before.
https://www.straitstimes.com/singapore/housing/seeding-interest-in-green-estates

Tech-friendly Singapore ‘a good city for urban trials’
Singapore’s tech-friendly climate has made it attractive for urban trials, said Katsumi Emura, chief technology officer of Japan’s NEC Corp. But he also cautioned that technical developments cannot replace value creation, as solutions must take into account the needs of each situation.
https://www.businesstimes.com.sg/technology/tech-friendly-singapore-a-good-city-for-urban-trials

Smart Nation agenda needs rethink on cybersecurity
Singapore’s Smart Nation push is yielding results. Identified as one of the most technologically ready economies in a recent Economic Intelligence Unit study, Singapore also ranked relatively high in cybersecurity preparedness, one of the key aspects of a strong digital infrastructure and a principal element of the ranking. However, instead of prioritising cybersecurity as a strategic asset, companies still view investments in cybersecurity as a cost on the balance sheet.
https://www.businesstimes.com.sg/opinion/smart-nation-agenda-needs-rethink-on-cybersecurity
https://www.businesstimes.com.sg/opinion/singapore-must-protect-its-digital-landscape-at-all-cost
https://www.straitstimes.com/singapore/benefits-and-risks-of-smart-nation-projects-in-pipeline
https://www.straitstimes.com/opinion/what-does-a-smart-society-look-like