DAILY NEWS

Daily News – 26 Jan 2021 (Tue)

Singapore Economy

Singapore manufacturing value targeted to grow 50% over 10 years
Singapore’s powerhouse manufacturing sector will have to maintain its growth momentum for the next 10 years, under an ambitious goal set out by Minister for Trade and Industry Chan Chun Sing on Monday. That’s as the Ministry of Trade and Industry (MTI)’s latest Manufacturing 2030 vision is for a “more productive” sector that features market-leading companies, including in growth segments such as agri-technology, biotechnology and urban mobility.
https://www.businesstimes.com.sg/government-economy/singapore-manufacturing-value-targeted-to-grow-50-over-10-years
https://www.straitstimes.com/business/economy/manufacturing-sector-seeks-new-edge-faster-growth

Singapore core consumer prices fall further in December, but headline inflation flat
Singapore saw core consumer prices fall further in December, even as the headline measure moved out of deflation, according to Department of Statistics (Singstat) consumer price index (CPI) figures on Monday. Core inflation fell to -0.3 per cent year on year, while headline inflation was flat at 0 per cent. Economists had expected both core and headline inflation to hold steady from the previous month at -0.1 per cent, but the divergence was fuelled by an increase in private road transport costs.
https://www.businesstimes.com.sg/government-economy/singapore-core-consumer-prices-fall-further-in-december-but-headline-inflation
https://www.straitstimes.com/business/economy/core-inflation-likely-to-be-positive-this-year-mas-mti
https://www.straitstimes.com/business/economy/overall-inflation-fell-02-per-cent-for-general-households

More Chinese firms making plans to invest, set up base in S’pore
A rising number of Chinese firms are making plans to expand overseas to tap opportunities in the post-Covid-19 landscape, and increasingly, they are picking Singapore as the destination to invest or raise funds. Amid uncertainties caused by geopolitical tensions in recent years and the Covid-19 pandemic, the Republic has become a more attractive destination for Chinese firms, said experts.
https://www.straitstimes.com/asia/east-asia/more-chinese-firms-making-plans-to-invest-set-up-base-in-spore

Tharman: Global recovery uncertain, so govts must be ready for setbacks
Until the roll-out of Covid-19 vaccines is widespread and the world achieves herd immunity, global economic recovery will be uncertain, Senior Minister Tharman Shanmugaratnam said. Governments must therefore prepare for a range of possibilities, be ready to deal with setbacks, and ensure that policies are in place to protect their weakest citizens. Mr Tharman, who is also Coordinating Minister for Social Policies, made these points yesterday, noting that in the face of great uncertainty last year, governments around the world implemented unprecedented monetary and fiscal policies to avoid the possible collapse of economies and public morale.
https://www.straitstimes.com/singapore/politics/tharman-global-recovery-uncertain-so-govts-must-be-ready-for-setbacks

Minister: Singapore’s response to crisis key to its relevance as hub
When international investors and the broader global community think about having some presence in Asia, Singapore ought to be the first answer that comes to mind. Education Minister Lawrence Wong yesterday expressed optimism for such a scenario in a post-Covid-19 future, but cautioned that Singapore’s ability to gain relevance as a hub would also depend on it responding well to the ongoing coronavirus situation.
https://www.straitstimes.com/singapore/politics/minister-singapores-response-to-crisis-key-to-its-relevance-as-hub

Venture abroad and rethink labour strategy, say business leaders
Singapore must get its people and businesses to look beyond local borders, while rethinking its approach to upskilling home-grown workers as well as its relationship with foreign labour. This was a way forward in a post-Covid-19 pandemic world outlined by business leaders yesterday at the Singapore Perspectives conference, organised by the Institute of Policy Studies.
https://www.straitstimes.com/singapore/politics/venture-abroad-and-rethink-labour-strategy-say-business-leaders

Companies’ Brief

Hot stock: CapitaLand shares sink 4.7% after profit warning; analysts remain positive
Shares in CapitaLand took a beating on Monday, after the property group on Friday warned it would report a loss for the year ended Dec 31, 2020. But analysts seem to be maintaining their recommendations on the counter, which have largely been positive. RHB analyst Vijay Natarajan told The Business Times (BT) on Monday: “We are not overly concerned about CapitaLand’s full-year loss guidance as these are mainly driven by fair value and impairment losses, which are non-cash in nature.”
https://www.businesstimes.com.sg/companies-markets/hot-stock-capitaland-shares-sink-47-after-profit-warning-analysts-remain-positive%C2%A0

Isetan could pay dearly for dragging its heels on sale of Wisma Atria space
Isetan Singapore, controlled by Japan’s largest department store chain Isetan Mitsukoshi, surely took its own sweet time. The Singapore-listed retailer, hard hit by slipping sales and less footfall traffic owing to the Covid-19 pandemic, called for a trading halt last Friday and subsequently said it was exploring options on its investment property at Wisma Atria. Isetan also said that it may appoint property agents and valuers to assist in “commencing exploratory discussions on the matter with third parties”.
https://www.businesstimes.com.sg/companies-markets/isetan-could-pay-dearly-for-dragging-its-heels-on-sale-of-wisma-atria-space

Keppel Reit H2 DPU rises 4.6% to 2.93 Singapore cents
Keppel real estate investment trust (Reit) reported a distribution per unit (DPU) of 2.93 Singapore cents for the second half of the fiscal year ended December, up 4.6 per cent from its DPU of 2.80 cents in the year-ago period. This brought the Reit’s full-year DPU for the whole of FY 2020 to 5.73 Singapore cents, a 2.7 per cent increase from 5.58 Singapore cents in FY 2019.
https://www.businesstimes.com.sg/companies-markets/keppel-reit-h2-dpu-rises-46-to-293-singapore-cents

Mapletree Logistics Trust’s DPU up 1% in Q3
Mapletree Logistics Trust’s (MLT) distribution per unit rose 1 per cent to 2.065 Singapore cents for its third quarter ended Dec 31, 2020, on an enlarged unit base following its equity fundraising completed in Q3. This is up from 2.044 Singapore cents a year ago. This sum comprises of advanced distribution of 0.623 Singapore cents for the period Oct 1-28, 2020 that was paid on Dec 4, 2020, and 1.442 Singapore cents for the balance distribution for the period Oct 29 to Dec 31, 2020, payable on March 15, 2021.
https://www.businesstimes.com.sg/companies-markets/mapletree-logistics-trusts-dpu-up-1-in-q3

Suntec Reit posts 3.7% fall in DPU to 2.261 S cents for Q4
Suntec Real Estate Investment Trust (Suntec Reit) posted on Tuesday a 3.7 per cent fall in distribution per unit (DPU) to 2.261 Singapore cents for the fourth quarter compared with 2.347 cents for the year-ago period. Gross revenue also fell 12 per cent at S$165.9 million for H2, compared to S$188.7 million a year ago. This was due to the Reit’s losses from a fall in rental income, most significantly from its office and retail properties such as Suntec Singapore, for which revenue fell by 65.9 per cent.
https://www.businesstimes.com.sg/companies-markets/suntec-reit-posts-37-fall-in-dpu-to-2261-s-cents-for-q4

Views, Reviews, Forum & Others

Budgeting to grow the new green economy
Many Singaporeans are looking to the upcoming 2021 Budget that the government and Deputy Prime Minister Heng Swee Keat will unveil on Feb 16. After the unprecedented S$100 billion support last year against the immediate impacts of the Covid-19 pandemic, focus is shifting on how to best prepare for the future. Support is expected to more specifically target some sectors. But what are the key targets?
https://www.businesstimes.com.sg/opinion/budgeting-to-grow-the-new-green-economy

WEF focuses on trust in post-pandemic world
The World Economic Forum (WEF) has long been perceived, by critics, as an exclusive club for the world’s globalised elite. It will therefore be ironic, for some, that the theme of this week’s important annual event is rebuilding societal trust, post-pandemic. Yet, scepticism aside, this trust topic is essential for the world to address given populist political surges, rising economic inequalities and the ‘post-truth’ phenomenon. And the end of the Trump presidency in the United States may provide the right moment for the world to turbocharge this conversation.
https://www.businesstimes.com.sg/opinion/wef-focuses-on-trust-in-post-pandemic-world

Pandemic preparedness vital to building back better process
Before 2020, the danger of a pandemic disease was recognised by many health experts and institutions, including the World Health Organization (WHO) and the US Centres for Disease Control and Prevention, but their warnings were either ignored by governments or failed to spur them to action. The US and British governments actually weakened their countries’ ability to respond to an outbreak in recent years through budget cuts. The Covid-19 outbreak certainly grabbed attention and forced lessons upon the world about how (and how not) to respond.
https://www.businesstimes.com.sg/opinion/pandemic-preparedness-vital-to-building-back-better-process

Contactless payments the new normal post-Covid, says Adyen
Consumers increasingly favour technological retail experiences, a development that has been hastened by the Covid-19 pandemic. Contactless payments, for example, are now preferred because of hygiene concerns. Global payments company Adyen predicted at a roundtable discussion last week that contactless will be cemented as the new normal, as the “seamless experience” afforded by one-click payments, same-day delivery options and QR menus raise consumers’ expectations.
https://www.businesstimes.com.sg/sme/contactless-payments-the-new-normal-post-covid-says-adyen

Update on COVID-19 (Coronavirus Disease 2019) Situation

One-year-old boy among 44 new imported cases
A one-year-old boy was among the 44 new coronavirus cases confirmed as at yesterday noon. The dependant’s pass holder had returned from the United Arab Emirates and was confirmed positive on Sunday. All the new cases announced yesterday were imported and had been placed on stay-home notice on arrival in Singapore, said the Ministry of Health (MOH). There were no new cases in the community for the third day in a row, and none from workers’ dormitories.
https://www.straitstimes.com/singapore/health/one-year-old-boy-among-44-new-imported-cases

Covid-19 has increased impetus for stronger social safety nets: Lawrence Wong
THE impact of Covid-19 has increased the impetus for government support and intervention, with Singapore to make “a permanent shift towards the strengthening of social safety nets”, said Education Minister and Second Minister for Finance Lawrence Wong on Monday. The pandemic has already changed the world, and we must be prepared for more changes, he said, in his speech preceding a dialogue on the final day of the Institute of Policy Studies’ Singapore Perspectives 2021 conference.
https://www.businesstimes.com.sg/government-economy/covid-19-has-increased-impetus-for-stronger-social-safety-nets-lawrence-wong

Pandemic calls for 3 major resets in society: Minister
The Covid-19 pandemic has set the stage for Singapore to undertake three major “resets” which could help it emerge from the crisis a fairer, greener and more united country. This entails combating inequality and ensuring social mobility, said Education Minister Lawrence Wong yesterday. It also means building a greener economy that is more environmentally sustainable, and fostering a renewed sense of solidarity, he added.
https://www.straitstimes.com/singapore/pandemic-calls-for-3-major-resets-in-society-minister

Covid-19 challenges and 3 resets: Lawrence Wong
At the Institute of Policy Studies Singapore Perspectives Conference 2021 yesterday, Education Minister Lawrence Wong, who is also co-chair of the Multi-ministry Taskforce on Covid-19, highlighted three resets that must be made in policy thinking, lifestyles and mindsets. Here are edited excerpts of his remarks:
https://www.straitstimes.com/singapore/covid-19-challenges-and-3-resets-lawrence-wong

Pandemic could last 4 or 5 years: Lawrence Wong
It could be four or five years before the world sees the end of the Covid-19 pandemic and the start of a post-pandemic normal, said Education Minister Lawrence Wong. In setting out this timeframe, he noted that the world is likely to encounter many more bumps along the way in handling the crisis. While the availability of Covid-19 vaccines will progressively restart global travel, getting the world vaccinated will not be quick or easy.
https://www.straitstimes.com/singapore/pandemic-could-last-4-or-5-years-lawrence-wong

askST: Why the stricter limit of 8 visitors per day?
From today, every household will have a cap of eight visitors each day, as part of enhanced Covid-19 restrictions.
https://www.straitstimes.com/singapore/why-the-stricter-limit-of-8-visitors-per-day

Will the world fail to prepare for the next pandemic?
The pandemic is still raging, but have governments and institutions addressed it well, so far? The progress report from the Independent Panel for Pandemic Preparedness and Response set up by the World Health Organisation (WHO) is a no-holds-barred, yet objective, assessment of performance to date. Although the full report will be out only in May, this interim report does point out failings and suggests practical areas for improvement at both national and global levels.
https://www.straitstimes.com/singapore/health/will-the-world-fail-to-prepare-for-the-next-pandemic
*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