DAILY NEWS

Daily News – 24 & 25 August 2021 (Tue & Wed)

Singapore Real Estate

IBM’s Red Hat tipped to lease almost 60,000 sq ft at CapitaSpring
The office component of integrated development CapitaSpring received Temporary Occupation Permit (TOP) last week, with about 90 per cent of the 635,000 sq ft net lettable area of office space in the integrated project either committed or in advanced negotiation, BT understands.
https://www.businesstimes.com.sg/real-estate/ibms-red-hat-tipped-to-lease-almost-60000-sq-ft-at-capitaspring

Should Singapore Reits adopt aspects of Link Reit’s model?
Singapore’s real estate investment trust (Reit) sector is much larger than that of Hong Kong. Reits and property trusts listed on the Singapore Exchange (SGX) have a combined market capitalisation of more than S$100 billion, which is more than double that of Hong Kong Reits.
https://www.businesstimes.com.sg/real-estate/should-singapore-reits-adopt-aspects-of-link-reits-model

Building found structurally safe after part of roof fell
A professional engineer has found a JTC Corporation building, where parts of decorative features on a concrete roof crashed to the ground on Sunday, and three surrounding buildings to be structurally safe. Permanent rectification works are still ongoing but cleaning of the area at 3013 Bedok Industrial Park E, where the incident occurred, will end soon, JTC said yesterday.
https://www.straitstimes.com/singapore/building-found-structurally-safe-after-part-of-roof-fell

Singapore Economy

Core inflation rises for 6th straight month
Core inflation in Singapore continued its upward trend for the sixth month running in July, on the back of higher electricity and gas costs. Core inflation, which excludes accommodation and private road transport costs, rose to 1 per cent on a year-on-year basis last month, up from 0.6 per cent in June.
https://www.straitstimes.com/business/economy/core-inflation-rises-for-6th-straight-month
https://www.businesstimes.com.sg/government-economy/singapore-core-inflation-spikes-to-two-year-peak-in-july-on-higher-energy-costs

Singapore will keep wooing semiconductor investments: Gan Kim Yong
Singapore is committed to keeping “best-in-class” semiconductor investments in the Republic, and will continue to build up the manufacturing sector. Trade and Industry Minister Gan Kim Yong gave the assurance on Monday that “Singapore stands ready to partner and support you in your next bound of growth”, as he noted “the exciting opportunities presented by this fast-growing sector”.
https://www.businesstimes.com.sg/government-economy/singapore-will-keep-wooing-semiconductor-investments-gan-kim-yong

Singapore and US announce new areas of cooperation
Prime Minister Lee Hsien Loong and United States Vice-President Kamala Harris hailed the robust and enduring partnership between their countries at the Istana yesterday as they announced new areas of cooperation in cyber security, climate, the economy, and combating pandemics.
https://www.straitstimes.com/singapore/singapore-and-us-announce-new-areas-of-cooperation
https://www.businesstimes.com.sg/government-economy/singapore-us-economic-cooperation-dynamic-and-flourishing-pm-lee
https://www.businesstimes.com.sg/government-economy/strengthening-supply-chains-critical-to-businesses-markets-kamala-harris

Companies’ Brief

Keppel-SPH: Sweet deal, but what next?
When Keppel Corp made the S$2.2 billion offer to take over Singapore Press Holdings’ (SPH) non-media assets, I should have seen it coming. I covered both companies as an analyst during their transformational years and should have intimate knowledge of their increasingly complementary businesses.
https://www.businesstimes.com.sg/companies-markets/keppel-sph-sweet-deal-but-what-next

Blackstone in talks to buy Singapore’s Interplex for US$1b
Blackstone Inc is in advanced talks to acquire Singaporean precision components business Interplex for about US$1 billion, according to people familiar with the matter. The US buyout firm is hammering out the details of a transaction with owner Baring Private Equity Asia…
https://www.businesstimes.com.sg/companies-markets/blackstone-in-talks-to-buy-singapores-interplex-for-us1b-0

AIMS APAC Reit proposes issue of S$250m perpetual securities at 5.375%
Aims APAC Reit has priced S$250 million in perpetual securities at 5.375 per cent per annum, the manager of the real estate investment trust (Reit) said in a bourse filing on Monday night. The perpetual securities will bear an initial distribution rate of 5.375 per cent per annum and a re-offer yield of 5.375 per cent…
https://www.businesstimes.com.sg/real-estate/aims-apac-reit-proposes-issue-of-s250m-perpetual-securities-at-5375

ESR-Reit preferential offering 3.6 times subscribed, raises S$49.6m
ESR-Reit has raised S$49.6 million in gross proceeds from its preferential offering, which was 3.6 times subscribed, the manager said on Tuesday. This brings the total amount raised from the real estate investment trust’s equity fundraising exercise to S$149.6 million, including S$100 million from a private placement in May 2021.
https://www.businesstimes.com.sg/real-estate/esr-reit-preferential-offering-36-times-subscribed-raises-s496m

Corporate digest
https://www.businesstimes.com.sg/companies-markets/corporate-digest-1435

Views, Reviews, Forum & Others

Making travel bubbles less prone to bursting
The global outbreak and spread of Covid-19 has hit every sector of global business and trade. However, the damage to the global tourism and hospitality industry has been catastrophic. Widespread international border closures, social distancing regulations, and lockdowns are anathemas to all that tourism promotes.
https://www.businesstimes.com.sg/opinion/making-travel-bubbles-less-prone-to-bursting

G-20 should focus on financial stability, trade and vaccination
Finance ministers, central bank governors, and political leaders are hard at work preparing for the 2021 G-20 Heads of State and Government Summit in Rome on Oct 30-31. With the Covid-19 pandemic stretching well into its second year…
https://www.businesstimes.com.sg/opinion/g-20-should-focus-on-financial-stability-trade-and-vaccination

We’re in a climate casino. Here’s how to fight against the odds
Imagine you are in a casino where the roulette wheels have only red and black colours. You win if the ball falls on black, and the house wins on red. Currently, more black than red slots exist, so it is a tempting game to play as the odds are in your favour.
https://www.straitstimes.com/opinion/were-in-a-climate-casino-heres-how-to-fight-against-the-odds

Investors may want to keep resilient Japan on their radar
In the rush to capitalise Asia’s rapid growth opportunities, investors have often neglected Japan, the world’s third largest economy. Japanese companies are not only beneficiaries of Asia’s growth but are plugged in to key structural themes of the post-pandemic world – Asia’s rising middle class, automation and robotics, and sustainability – yet they remain mostly ignored by investors.
https://www.businesstimes.com.sg/opinion/investors-may-want-to-keep-resilient-japan-on-their-radar

Singapore at the helm of digital trade
Singapore has built its success as a global trading hub through innovative approaches. While the country’s strategic location gives it a natural advantage when it comes to trading, Singapore’s meteoric rise to become one of the most competitive economies in the world did not happen by chance, but by dint of foresight and strategic policymaking.
https://www.businesstimes.com.sg/opinion/singapore-at-the-helm-of-digital-trade

Hyperglobalisation happened when developing world turned outward-looking
When I was in my 30s, my parents gave me a sweatshirt bearing the words “Global shmobal”. At the time, I was going to many economics conferences; when my parents would ask me what the latest conference was about, I apparently always replied, “Global shmobal”.
https://www.businesstimes.com.sg/opinion/hyperglobalisation-happened-when-developing-world-turned-outward-looking

GIC and Temasek among top 10 sovereign funds globally: survey
Singapore may be a little red dot but its sovereign funds – GIC and Temasek – rank among the top 10 sovereign funds globally. The ranking is compiled by a study, the Global Public Investor 2021 survey, published by OMFIF Ltd (Official Monetary and Financial Institutions Forum).
https://www.businesstimes.com.sg/banking-finance/gic-and-temasek-among-top-10-sovereign-funds-globally-survey

Digitalisation key to retail sector transformation: Gan
Home-grown footwear and accessories retailer Charles & Keith was already selling its products online, but when the Covid-19 pandemic hit, it accelerated the company’s digitalisation process. The company now not only provides training online for its 7,000 staff worldwide….
https://www.straitstimes.com/singapore/consumer/digitalisation-key-to-retail-sector-transformation-gan

The promises and realities of sustainable investing
Sustainable investing, or the consideration of environmental, social and governance (ESG) factors alongside with financial analysis in the investment process, has attracted significant interest in recent years. The numbers speak for themselves.
https://www.businesstimes.com.sg/wealth-investing/the-promises-and-realities-of-sustainable-investing

How Singapore is setting new highs in the family office space
Family offices go wherever wealth goes, and accompanying Asia’s tectonic rise over the past decades as a global economic powerhouse is the corresponding surge of wealth and family offices in the region.
https://www.businesstimes.com.sg/hub/whos-who-in-private-banking-2021/how-singapore-is-setting-new-highs-in-the-family-office-space

The sustainability revolution is here in Asia
When Covid- 19 exploded onto the world stage in 2020, there were momentary concerns that the approach towards sustainability, which was on an uptrend, would take a backseat to other issues impacted by the pandemic.
https://www.businesstimes.com.sg/hub/whos-who-in-private-banking-2021/the-sustainability-revolution-is-here-in-asia

Building lasting value through sustainable and impact investment
Sustainability is critical to a good business strategy. Due to the widespread economic and social disruption caused by the Covid-19 pandemic, environmental, social, and governance (ESG) considerations have grown significantly in interest and importance.
https://www.businesstimes.com.sg/hub/whos-who-in-private-banking-2021/building-lasting-value-through-sustainable-and-impact

Experts identify the winners and losers as decarbonisation efforts intensify
The United Nations’ (UN) climate panel recently sounded its most dire warning to date, saying that the world is dangerously close to runaway warming, with consequences expected to be particularly bleak for Asia’s disaster-prone poor.
https://www.businesstimes.com.sg/companies-markets/experts-identify-the-winners-and-losers-as-decarbonisation-efforts-intensify

Potential gains to be found beyond China’s mega-caps
While China’s recent regulatory changes targeting certain sectors may have surprised some investors, its stock market has experienced heightened regulatory tensions on a number of occasions during the past decade, eventually creating winners and losers as well as risks and opportunities for investors.
https://www.businesstimes.com.sg/wealth-investing/potential-gains-to-be-found-beyond-chinas-mega-caps

Jumping on the gravy train?
We are all attracted to high returns, more so when they are guaranteed. But what is guaranteed? The total return, or only a portion of the returns, or something else such as capital or the interest strips? Or perhaps nothing is guaranteed.
https://www.businesstimes.com.sg/wealth-investing/jumping-on-the-gravy-train

Update on COVID-19 (Coronavirus Disease 2019) Situation

111 new locally transmitted Covid-19 cases; 33 unlinked
There were 111 new locally transmitted Covid-19 cases on Tuesday (Aug 24), of which 33 were unlinked. The remaining 78 cases are linked, the Ministry of Health (MOH) said in its afternoon update.
https://www.businesstimes.com.sg/government-economy/111-new-locally-transmitted-covid-19-cases-33-unlinked-0

New Covid-19 cluster at Bugis Junction with 20 staff infected
[Singapore] A new Covid-19 cluster at Bugis Junction with 20 cases – all staff who work at the mall – was announced on Tuesday (Aug 24). Staff who have been working in affected shops will be tested and close contacts of confirmed cases will be quarantined, said the Ministry of Health (MOH).
https://www.businesstimes.com.sg/government-economy/new-covid-19-cluster-at-bugis-junction-with-20-staff-infected
https://www.straitstimes.com/singapore/new-cluster-at-bugis-junction-all-20-cases-staff-working-at-mall

All 62 Covid-19 cases in North Coast Lodge fully vaccinated
[Singapore] All 62 Covid-19 cases detected among migrant workers from the North Coast Lodge dormitory in Woodlands on Monday (Aug 23) were fully vaccinated, said the Ministry of Manpower (MOM) on Tuesday (Aug 24).
https://www.businesstimes.com.sg/government-economy/all-62-covid-19-cases-in-north-coast-lodge-fully-vaccinated
https://www.straitstimes.com/singapore/62-cases-detected-at-woodlands-dorm-were-fully-vaccinated-mom

Tougher stance to get more workers on board
A tougher stance is being taken to get more workers vaccinated, as Singapore continues to battle the Delta variant of the Sars-CoV-2 virus behind the Covid-19 pandemic. The message is clear from new guidelines issued by the tripartite partners…
https://www.straitstimes.com/singapore/health/tougher-stance-to-get-more-workers-on-board

Task force flags pandemic’s impact on mental health
More than half of the young people polled by the National Youth Council in the second half of last year said mental well-being was a challenge for them, with some citing anxiety over the future, stress over finances, and worries about academic or work performance.
https://www.straitstimes.com/singapore/task-force-flags-pandemics-impact-on-mental-health

Staff who avoid jabs may be told to pay for regular tests
All employers have been urged to consider implementing a regime for employees to get vaccinated or undergo regular tests. As part of efforts to boost vaccination rates, employers may also ask staff who are eligible but choose not to be vaccinated to pay for regular testing, and exclude them from medical benefits linked to Covid-19.
https://www.straitstimes.com/singapore/health/staff-who-avoid-jabs-may-be-told-to-pay-for-regular-tests
https://www.businesstimes.com.sg/government-economy/all-employers-urged-to-consider-covid-19-tests-for-unvaccinated-staff

Voluntary mass flu jabs planned in public sector
A voluntary flu vaccination drive is being planned for 44 public agencies to ensure that as many employees as possible are protected ahead of the end-of-year flu season. Because influenza and Covid-19 symptoms can be similar, the flu vaccinations aim to reduce the number of people subject to Covid-19 regulations…
https://www.straitstimes.com/singapore/health/voluntary-mass-flu-jabs-planned-in-public-sector

Study finds high levels of support for Singapore’s Covid-19 circuit breaker measures
Singapore – Most respondents to a large-scale study on the effects of Singapore’s circuit breaker felt the Government did a good job in managing the Covid-19 pandemic during the lockdown, and showed high levels of willingness to continue with some form of those measures as needed.
https://www.straitstimes.com/singapore/rsis-study-finds-high-levels-of-support-for-circuit-breaker-measures

Lower-income folk worst hit by S’pore’s Covid-19 circuit breaker: Study
The circuit breaker highlighted concerns over how such vulnerabilities might play out over the longer term, said the papers’ authors. More than four in 10 households earning less than $1,000 and more than three in 10 of those earning between $1,000 and $2,900 reported having trouble paying for living expenses.
https://www.straitstimes.com/singapore/lower-income-folk-worst-hit-by-spores-covid-19-circuit-breaker-study

Pick up surgical, N95 masks from malls and supermarkets
From tomorrow, Singapore residents can collect free masks at 15 CapitaLand malls and selected supermarkets islandwide. The month-long distribution exercise is the fifth by Temasek Foundation and will be the first time medical-grade disposable masks are being distributed.
https://www.straitstimes.com/singapore/health/pick-up-surgical-n95-masks-from-malls-and-supermarkets

*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