Singapore’s growth in 2017 set to mirror 2016’s, as globalisation backlash intensifies
Even as Singapore’s economy seems to be picking itself up for the rest of 2016, the new year may not be a good time to get one’s hopes up too high. Next year’s growth prospects will not deviate much from this year’s as backlash against globalisation is set to intensify, according to forecasts from the Ministry of Trade and Industry (MTI) released on Thursday. It sees 2017’s growth at a “modest pace” of one to 3 per cent, essentially the same parameters that were in the government’s earliest forecast for 2016. “Political risks and uncertainties have risen, and could in turn lead to greater economic uncertainties,” said Loh Khum Yean, MTI’s permanent secretary, at a press conference on Thursday of 2017’s outlook. “An increasing backlash against globalisation could further dampen global trade, which is already weak.”
DPM Tharman’s 3 ways to save the open economy
Going global and keeping the economy open are the only positive ways for a country to advance – and to save the system that supports it requires public policies to concentrate more in three areas: regeneration, productivity and education, according to Deputy Prime Minister Tharman Shanmugaratnam. Speaking on Thursday at the inaugural Singapore-France economic forum hosted by Le Cercle des economists, the Economic Society of Singapore, ESSEC Business School and Paris Europlace, Mr Tharman said the spotlight must go beyond redistributing the fruits of an open economy and help those inevitably left behind. Mr Tharman, who is also Singapore’s Coordinating Minister for Economic and Social Policies, said policymakers should put regeneration as the central focus – regeneration of towns and cities, creation of new jobs, regeneration of neighbourhoods in the urban planning sense.
IE S’pore downgrades 2016 forecast for exports
Non-oil domestic export (NODX) performance for the full year is likely to be worse than the government earlier thought. The good news is that the worst may soon be over on the trade front. But until September, the NODX and trade were still in free fall. It extended its descent in the third quarter, leading International Enterprise Singapore (IE Singapore) to further shave its 2016 forecast for the NODX. The NODX fell 5.4 per cent year-on-year in July to September, steepening the 0.2 per cent dip in the second quarter, according to the latest trade released by the trade promotion agency on Thursday.
Singapore Real Estate
3 prime residential properties off Orchard Road sold for S$190.5m
Three prime residential buildings near Orchard Road have been sold to three different group of developers for S$190.5 million in total. Tenders for the freehold properties located at 3 Cuscaden Walk, 120 Grange Road, and 8 Hullet Road were launched last month simultaneously with an aggregate guide price of S$185 million and were closed on Nov 2. The tender exercise was managed jointly by JLL and CBRE on behalf of the owner, who was seeking offers for the three buildings – each comprising a single apartment tower 10 to 12 storeys high – individually or as one lot.
Interest in residential property remains strong
Recently released data from the Urban Redevelopment Authority (URA) showed that 1,252 private residences were sold by developers in October, a 15-month high for monthly new home sales. In the first 10 months of this year, developers have already sold 6,908 units and the figure for the whole year is expected to exceed the 7,440 units sold last year. In addition, buyers picked up another 6,337 units in the resale market in the first three quarters of the year, a significant 24.7 per cent higher than the 5,081 units sold in the same period last year. Evidently, more buyers are entering the market and committing to a property purchase. Why is this so? Much has been said about the housing market situation in Singapore.
Ascott launches new brand for millennials
CapitaLand’s serviced-residence business arm The Ascott is targeting millennial travellers with its new brand, Lyf – which will be ramped up to 10,000 units, or 50 properties, worldwide by 2020. Pronounced “life”, the brand is the first to be added to The Ascott’s portfolio since it acquired the remaining 50 per cent stake in Citadines in 2004. Its two other brands are Ascott and Somerset. According to a report by Hotels Mag, millennial travellers account for over US$200 billion in travel spend annually. Today, this segment of customers make up 25 per cent of Ascott’s client base.
Global Economy & Global Real Estate
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