DAILY NEWS

Daily News – 26 & 27 January 2022 (Wed & Thu)

Singapore Real Estate

Sultan Plaza collective sale closing date extended to Mar 3
The closing date of Sultan Plaza’s collective sale has been extended to Mar 3, 2022, to obtain an in-principle approval (IPA) for a potential sale of an adjacent piece of land. The Singapore Land Authority is currently processing the application for an IPA for the 10,968 square feet (sq ft) of remnant state land, and the result “can be anytime soon”…https://www.businesstimes.com.sg/real-estate/sultan-plaza-collective-sale-closing-date-extended-to-mar-3

URA awards Jalan Tembusu and Lentor Hills site to highest bidders
Tenders for residential sites at Jalan Tembusu and Lentor Hills Road Parcel A have been awarded to their respective highest bidders, announced the Urban Redevelopment Authority (URA) in a press statement on Wednesday (Jan 26).
https://www.businesstimes.com.sg/real-estate/ura-awards-jalan-tembusu-and-lentor-hills-site-to-highest-bidders
https://www.straitstimes.com/business/property/ura-awards-jalan-tembusu-and-lentor-hills-site-to-highest-bidders

Singapore property market could see limited impact from tightened monetary policy
Economists do not expect a slight appreciation in the Singapore dollar (SGD) to deter foreign property developers and buyers. Some say it may even be a boon. The Monetary Authority of Singapore’s (MAS) latest tightening of policy could therefore have only a small overall impact on real estate in the Republic.
https://www.businesstimes.com.sg/real-estate/wealth-investing/singapore-property-market-could-see-limited-impact-from-tightened

Developers show restraint in latest GLS tender, despite shrinking unsold inventory
At last week’s Government Land Sales (GLS) tender – for two 99-year leasehold private housing sites – the top bids broke an optimistic streak of rising land prices at state tenders last year. Among the key factors at play was uncertainty about construction costs…
https://www.businesstimes.com.sg/companies-markets/wealth-investing/developers-show-restraint-in-latest-gls-tender-despite-shrinking

Singapore Economy

BCA expects 2022 construction demand between S$27b and S$32b, supported by public sector projects
The Building and Construction Authority (BCA) has projected the total value of construction contracts awarded in 2022 to be between S$27 billion and S$32 billion, it said on Wednesday (Jan 26).
https://www.businesstimes.com.sg/government-economy/bca-expects-2022-construction-demand-between-s27b-and-s32b-supported-by-public
https://www.straitstimes.com/singapore/housing/construction-demand-for-2022-to-return-to-near-pre-covid-19-levels-sector-outlook-still-vulnerable-with-omicron-threat

Singapore factory sector expands 13.2% in 2021 with uplift from better-than-expected December output growth
Singapore’s manufacturing sector grew by 13.2 per cent year on year in 2021, jumping from the 7.5 per cent expansion in 2020, according to fresh figures on Wednesday (Jan 26). Full-year growth was driven by electronics and its adjacent precision engineering cluster…
https://www.businesstimes.com.sg/government-economy/singapore-factory-sector-expands-132-in-2021-with-uplift-from-better-than
https://www.straitstimes.com/business/economy/spore-factory-output-up-by-156-boosted-by-biomedical-production

Singapore scored above-target S$11.8b in fixed asset investment commitments in 2021
Singapore secured S$11.8 billion in fixed asset investment (FAI) commitments in 2021, down from the previous year’s decade-long high of S$17.2 billion, but still above the Singapore Economic Development Board’s (EDB) medium- to long-term target range of S$8 billion to S$10 billion.
https://www.businesstimes.com.sg/government-economy/singapore-scored-above-target-s118b-in-fixed-asset-investment-commitments-in-2021
https://www.straitstimes.com/business/economy/singapore-draws-118b-in-fixed-asset-investments-in-2021-despite-covid-19-edb
https://www.straitstimes.com/business/economy/role-of-edb-in-ensuring-singapores-success-in-a-new-tech-driven-world

Return to surplus expected for Singapore Budget in FY2022
With government revenues staying strong and Covid-19 support winding up, the new financial year may be one of building the public coffers back up. This builds on progress made in soon-to-end FY2021, with a much smaller expected shortfall than FY2020’s record S$64.9 billion deficit, and some economists even seeing the chance of a surplus.
https://www.businesstimes.com.sg/government-economy/return-to-surplus-expected-for-singapore-budget-in-fy2022?close=true

The 3 ways that MAS might change exchange rate policy
In a surprise off-cycle move, the Monetary Authority of Singapore (MAS) tightened monetary policy on Tuesday (Jan 25) by raising the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) slightly, while keeping its width and level unchanged.
https://www.businesstimes.com.sg/government-economy/the-3-ways-that-mas-might-change-exchange-rate-policy

Economists not ruling out further tightening by MAS in April despite surprise off-cycle move
After a surprise off-cycle policy tightening on Tuesday (Jan 25), the Monetary Authority of Singapore (MAS) could still make further moves in April, say economists – not least as it has also raised its inflation estimates for 2022.
https://www.businesstimes.com.sg/government-economy/economists-not-ruling-out-further-tightening-by-mas-in-april-despite-surprise-off

MAS tightens Singdollar policy for second time in 3 months to counter rising inflation
Singapore – Singapore’s central bank tightened its monetary policy in a surprise off-cycle move on Tuesday (Jan 25), to help strengthen the Singapore dollar and combat inflation running at its fastest pace in nearly eight years.
https://www.straitstimes.com/business/economy/mas-tightens-singdollar-policy-to-counter-rising-inflation
https://www.businesstimes.com.sg/government-economy/modest-appreciation-of-sgd-against-usd-expected-as-mas-tightens-monetary-policy

MAS tightening monetary policy paves way for GST hike: economists
The tightening of monetary policy is unlikely to delay the government’s planned goods and services tax (GST) hike from 7 to 9 per cent, and may in fact pave the way for the raise by controlling inflationary pressures, said economists.
https://www.businesstimes.com.sg/government-economy/mas-tightening-monetary-policy-paves-way-for-gst-hike-economists

Singapore tourism sector keeps up domestic market focus in ‘twin approach’ to recovery
The Singapore Tourism Board (STB) will continue to encourage domestic tourism, even as policymakers work to win back international visitors, STB chief executive Keith Tan said on Tuesday (Jan 25).
https://www.businesstimes.com.sg/government-economy/singapore-tourism-sector-keeps-up-domestic-market-focus-in-twin-approach-to

Outcome of carbon tax review to be announced at Budget 2022
Singapore – Singapore is reviewing its carbon tax level, and the outcome will be announced by the Ministry of Finance at this year’s Budget, said Minister for Sustainability and the Environment Grace Fu on Tuesday (Jan 25).
https://www.straitstimes.com/singapore/environment/outcome-of-carbon-tax-review-to-be-announced-at-budget-2022

Singapore ranked fourth least corrupt country in the world: Transparency International
Singapore – The Republic has emerged in the top ranks of least corrupt countries, according to the results of a survey of 180 countries and territories by global anti-graft movement Transparency International released on Tuesday (Jan 25).
https://www.straitstimes.com/singapore/singapore-ranked-fourth-least-corrupt-country-in-the-world-transparency-international

Companies’ Brief

GuocoLand H1 profit rises 195% to S$67.5m
Property developer GuocoLand posted a 195 per cent rise in net profit to S$67.5 million for its first half ended Dec 31, 2021, from S$22.9 million a year ago. This was on the back of stronger revenue growth as the company saw broad-based growth across all its business segments, the property developer said in a bourse filing on Thursday (Jan 27).
https://www.businesstimes.com.sg/companies-markets/guocoland-h1-profit-rises-195-to-s675m

ESR-Reit posts H2 DPU of S$0.01433
ESR-Reit on Thursday (Jan 27) posted a distribution per unit (DPU) of S$0.01433 for the second half ended Dec 31, 2021, compared with S$0.01441 in the year-ago period. Gross revenue was up 4.5 per cent to S$121.4 million for H2 2021, from S$116.2 million a year ago.
https://www.businesstimes.com.sg/companies-markets/esr-reit-posts-h2-dpu-of-s001433

‘Resilient’ suburban malls lift FCT tenants’ sales above pre-Covid levels
Evolving shopping trends amid the pandemic has lifted sales by tenants at Frasers Centrepoint Trust’s (FCT) portfolio of suburban retail malls to above pre-Covid levels in its first quarter ended December.
https://www.businesstimes.com.sg/companies-markets/wealth-investing/resilient-suburban-malls-lift-fct-tenants-sales-above-pre-covid

Frasers Centrepoint Trust’s committed retail portfolio occupancy at 97.2% in Q1
The manager of Frasers Centrepoint Trust (FCT) on Tuesday (Jan 25) reported that committed occupancy for the retail portfolio was stable at 97.2 per cent in Q1 FY2022 ended December, on the back of new retail concepts and brands introduced to refresh shopper experience and ensure sustainable trading.
https://www.businesstimes.com.sg/companies-markets/frasers-centrepoint-trusts-committed-retail-portfolio-occupancy-at-972-in-q1-0

Keppel Infrastructure Trust posts 3.2% rise in H2 DPU to S$0.0192; unveils new growth strategy post review
The trustee-manager of Keppel Infrastructure Trust on Wednesday (Jan 26) reported a distribution per unit (DPU) of S$0.0192 for the second half of fiscal year 2021 ended December, up 3.2 per cent from a DPU of S$0.0186 for the corresponding period in FY2020.
https://www.businesstimes.com.sg/companies-markets/keppel-infrastructure-trust-posts-32-rise-in-h2-dpu-to-s00192-unveils-new-growth

Mapletree Commercial Trust’s net property income up 5.6 per cent for 9-month period
Mapletree Commercial Trust (MCT), the target of a proposed merger with Mapletree North Asia Commercial Trust, on Wednesday (Jan 26) posted net property income of S$291.3 million for the nine months to Dec 31, 2021, 5.6 per cent higher than a year ago.
https://www.businesstimes.com.sg/companies-markets/wealth-investing/mapletree-commercial-trusts-net-property-income-up-56-per-cent

Mapletree Industrial Trust Q3 DPU up 6.4% at 3.49 Singapore cents
Mapletree Industrial Trust’s (MIT) third-quarter distribution per unit (DPU) rose from 3.28 Singapore cents a year ago to 3.49 cents on an enlarged unit base, which resulted from the equity fundraising exercise in Q1.
https://www.businesstimes.com.sg/companies-markets/mapletree-industrial-trust-q3-dpu-up-64-at-349-singapore-cents

Suntec Reit posts 9.8% rise in H2 DPU to S$0.04512
Suntec real estate investment trust’s (Reit) distribution per unit (DPU) rose 9.8 per cent to 4.512 Singapore cents for its second half ended Dec 31, 2021, from 4.109 cents a year ago, its manager said in a bourse filing filed on Wednesday (Jan 26).
https://www.businesstimes.com.sg/companies-markets/suntec-reit-posts-98-rise-in-h2-dpu-to-s004512

Starhill Global Reit posts 2.3% rise in H1 FY21/22 DPU to S$0.0178
Starhill Global Reit on Tuesday (Jan 25) posted a distribution per unit (DPU) of S$0.0178 for the first half of the fiscal year FY2021/22 ended Dec 31, 2021, up 2.3 per cent from a DPU of S$0.0174 in the corresponding year-ago period.
https://www.businesstimes.com.sg/companies-markets/starhill-global-reit-posts-23-rise-in-h1-fy2122-dpu-to-s00178-0

Views, Reviews, Forum & Others

Reit managers, sponsors should get in front of evolving investor attitudes on mergers
The managers of ESR-Reit and Ara Logos Logistics Trust (ALog Trust) reacted strongly this week to suggestions that they had been less than transparent in coming to a decision to merge the two real estate investment trusts (Reits).
https://www.businesstimes.com.sg/opinion/reit-managers-sponsors-should-get-in-front-of-evolving-investor-attitudes-on-mergers

Can Asean achieve its circular economy ambitions?
Alarm bells for climate action in the Association of Southeast Asian Nations (Asean) have been steadily growing louder. A recent report by Nanyang Technological University and the University of Glasgow warned that Asean could lose over 35 per cent of its (GDP) by 2050 as climate change threatens key sectors like tourism.
https://www.businesstimes.com.sg/opinion/can-asean-achieve-its-circular-economy-ambitions

CBDC must preserve defining features of physical money
Physical cash is the only form of privacy-preserving currency that is accessible to all today. The monetary system itself rests on foundational trust in central bank currency as a public good. Billions of people rely on banknotes and coins as essential privacy tools to exchange and store value, yet these artefacts can be lost or stolen and require proximity to exchange.
https://www.businesstimes.com.sg/opinion/cbdc-must-preserve-defining-features-of-physical-money

Global supply chain woes may linger into 2023 as Covid-19 persists
Global supply chain bottlenecks across critical sectors from energy, agriculture to semiconductors, shipping and logistics have intensified amid a more infectious Omicron variant. Surging global demand as capacity, logistical and labour woes persist has also piled on the pressure.
https://www.businesstimes.com.sg/opinion/global-supply-chain-woes-may-linger-into-2023-as-covid-19-persists

How is Omicron affecting the global economic recovery?
Late November almost began to feel like the early days of the pandemic all over again. Global stock markets fell by 5 per cent as news of what would come to be known as the Omicron variant filtered out and investors feared either another round of restrictions, or that people would voluntarily shut themselves away.
https://www.businesstimes.com.sg/opinion/how-is-omicron-affecting-the-global-economic-recovery

Putting ESG at the heart of the real estate business
ESR, the largest sponsor and manager of Reits in Asia-Pacific, is aiming for a 50% increase in solar power generation and a 20% reduction in group-wide energy consumption, among other sustainability goals.
https://www.businesstimes.com.sg/hub-projects/green-business/putting-esg-at-the-heart-of-the-real-estate-business

Asean+3 to see ‘relatively robust growth’ in 2022: AMRO
The Asean+3 economies will still see “relatively robust” growth of 4.9 per cent in the coming year even as risks to the growth outlook are tilted to the downside, said the Asean+3 Macroeconomic Research Office (Amro) on Tuesday (Jan 25).
https://www.businesstimes.com.sg/government-economy/asean3-to-see-relatively-robust-growth-in-2022-amro

3 Singapore investment themes to enrich the Year of the Tiger
True to its name, the Year of the Ox was bullish for the Singapore stock market. Our bellwether Straits Times Index (SGX: ^STI) rose by 9.8 per cent, making it the third-best performer in Southeast Asia.
https://www.businesstimes.com.sg/wealth-investing/wealth-investing/3-singapore-investment-themes-to-enrich-the-year-of-the-tiger

Surge in inquiries on Batam, Bintan travel bubble ferry trips despite mandatory SHN on return to S’pore
Singapore – Ferry operators that run trips to Batam and Bintan have been getting a flurry of inquiries since Monday (Jan 24), following Indonesia’s announcement that it will start travel bubbles between Singapore and these two islands.
https://www.straitstimes.com/singapore/transport/surge-in-enquiries-on-batam-bintan-ferry-trips-despite-mandatory-shn-on-return-to-spore

Update on COVID-19 (Coronavirus Disease 2019) Situation

580 Covid-19 patients hospitalised in Singapore; 44 need oxygen support, 11 in ICU
[Singapore] A total of 580 people in Singapore are now hospitalised with Covid-19, of whom 44 require oxygen support and 11 are in the intensive care unit (ICU). The Ministry of Health’s (MOH) statistics as at noon on Wednesday (Jan 26) show that 71 more people are now warded in hospitals than on Tuesday. There are also nine more people requiring oxygen support and one more person in the ICU.
https://www.businesstimes.com.sg/government-economy/580-covid-19-patients-hospitalised-in-singapore-44-need-oxygen-support-11-in-icu
https://www.straitstimes.com/singapore/health/580-people-in-spore-in-hospital-with-covid-19-44-need-oxygen-support-11-in-icu

*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) situat