DAILY NEWS

Daily News – 26 feb 2020 (Wed)

Singapore Real Estate

JTC launches two industrial sites
JTC launched two sites on Tuesday under the industrial government land sales (IGLS) programme, one for tender and the other for application. Available for tender is Jalan Papan (Plot 1), which spans an area of 1.23 hectares.
https://www.businesstimes.com.sg/real-estate/jtc-launches-two-industrial-sites-0

Labour crunch and supply delays: Some construction firms in Singapore feeling the strain of COVID-19
Construction firms in Singapore are starting to feel the strain from labour shortages and supply chain disruptions caused by the outbreak of COVID-19, with some seeking deadline extensions for their projects.
https://www.channelnewsasia.com/news/singapore/labour-crunch-supply-delays-covid-19-construction-singapore-12468994

Singapore Economy

Singapore economy seen shrinking 0.6% in Q1 from coronavirus: Reuters poll
The effects of the coronavirus outbreak are likely to reverberate beyond China as most major economies in the region are expected to either slow down significantly, halt or shrink outright in the current quarter, Reuters polls of economists found.
https://www.straitstimes.com/business/economy/singapore-economy-seen-shrinking-06-in-q1-from-coronavirus-reuters-poll

Companies’ Brief

CapitaLand Q4 profit almost doubles; buys UK business park for £126.7m
Property giant CapitaLand’s net profit almost doubled to S$926.6 million for its fourth quarter ended Dec 31, 2019, from S$475.7 million a year ago. The company on Wednesday also announced it has acquired a prime freehold business park in the UK for a total consideration of £126.7 million (S$222.4 million).
https://www.businesstimes.com.sg/companies-markets/capitaland-q4-profit-almost-doubles-buys-uk-business-park-for-%C2%A31267m
https://www.straitstimes.com/business/companies-markets/capitaland-q4-profit-almost-doubles-to-9266m-buys-uk-business-park-for

City Developments’ Q4 profit up 12.5% to S$87.7m
City Developments Limited (CDL) posted a 12.5 per cent rise in net profit to S$87.7 million for the fourth quarter ended Dec 31, up from S$77.9 million a year ago. This was thanks to increased revenue contribution across its core business segments, the property and hotels group said on Wednesday.
https://www.businesstimes.com.sg/companies-markets/city-developments-q4-profit-up-125-to-s877m
https://www.straitstimes.com/business/companies-markets/city-developments-q4-profit-up-125-to-877m

SPH to buy 6 aged care assets in Canada for $244.5m in second expansion abroad
Singapore Press Holdings (SPH) announced within a week its second investment abroad in the aged care business – the acquisition of a portfolio of assets in Canada for C$232.9 million (S$244.5 million).
https://www.straitstimes.com/business/companies-markets/sph-to-buy-6-aged-care-assets-in-canada-for-2445m

Straits Trading more than doubles Q4 net to S$29.7m
The Straits Trading Company’s net profit for the fourth quarter ended Dec 31, more than doubled to S$29.7 million from S$14.1 million, largely contributed by its real estate segment even as the group continues to “exercise prudence when considering new investments” amid the growing scale of Covid-19.
https://www.businesstimes.com.sg/companies-markets/straits-trading-more-than-doubles-q4-net-to-s297m

Aspial profit slides 55.2% on weaker real estate business
Aspial Corporation posted on Monday a 55.2 per cent drop in net profit to S$12.7 million for the year ended Dec 31, mainly due to lower revenue as a result of weaker performance from its real estate business. Earnings per share stood at 0.66 Singapore cents for the year, down from 1.46 cents for 2018.
https://www.businesstimes.com.sg/companies-markets/aspial-profit-slides-552-on-weaker-real-estate-business

Park Hotel bags S$237m green loan from UOB
Hospitality player Park Hotel Group has secured a S$237 million green loan from United Overseas Bank (UOB) to refinance the refurbishment of Grand Park City Hall, a hotel it owns and manages. The loan was issued under the UOB Real Estate Sustainable Finance Framework, the bank said in a joint statement on Tuesday.
https://www.businesstimes.com.sg/real-estate/park-hotel-bags-s237m-green-loan-from-uob

Views, Reviews, Forum & Others

Virus outbreak can be impetus for companies to improve, diversify
A crisis is an opportunity riding the dangerous wind. So goes one Chinese proverb. Indeed, during previous epidemics, individuals, organisations and governments rode out dangerous winds and did well. Given the current Covid-19 outbreak, what can corporations learn and from those earlier experiences?
https://www.businesstimes.com.sg/companies-markets/virus-outbreak-can-be-impetus-for-companies-to-improve-diversify

No let-up in push to reduce foreign labour dependency even in trying times
Among the various forms of help that Budget 2020 brought for businesses affected by the Covid-19 outbreak, one potential measure was conspicuous in its absence: the loosening of foreign worker policy – whether in the form of levy reductions, quota generosity or source country flexibility.
https://www.businesstimes.com.sg/opinion/no-let-up-in-push-to-reduce-foreign-labour-dependency-even-in-trying-times

Singapore Budget 2020

Singapore ready to do more if virus outbreak worsens: DPM Heng
Singapore is watching closely the rapidly evolving global Covid-19 outbreak and is ready to do more should the situation call for it, Deputy Prime Minister Heng Swee Keat said yesterday. He told reporters that the measures to relieve businesses and workers in the Budget were a very calibrated response that is appropriate for the current situation.
https://www.straitstimes.com/singapore/spore-ready-to-do-more-if-virus-outbreak-worsens-dpm-heng

Use downtime to transform: DPM Heng
Firms should use the downtime from the Covid-19 outbreak to transform, tapping not just the virus support package but also government support for transformation, said Deputy Prime Minister and Finance Minister Heng Swee Keat on Tuesday.
https://www.businesstimes.com.sg/government-economy/use-downtime-to-transform-dpm-heng

Singapore has funds to support firms further: Expert
When a scheme that will give employers a cash grant for three months to help them retain their local workers was announced in this year’s Budget, some businesses asked if Singapore was under-reacting to the economic impact of the coronavirus outbreak.
https://www.straitstimes.com/singapore/spore-has-funds-to-support-firms-further-expert

MPs begin annual debate on Budget statement today
Parliament will sit for nine days from today to debate the 2020 Budget amid a climate of economic uncertainty made worse by the coronavirus outbreak. The Government’s planned aid for workers and businesses will thus be among the hot topics of the annual marathon debate.
https://www.straitstimes.com/singapore/mps-begin-annual-debate-on-budget-statement-today

Update on COVID-19 (Coronavirus Disease 2019) situation

Covid-19: Singapore bars visitors from Daegu, Cheongdo
Singapore is turning away with effect from Wednesday night all visitors with travel history to Daegu and Cheongdo in South Korea within the last 14 days, even as authorities announced a breakthrough in linking existing clusters through serological testing in what’s believed to be the first such use of the test.
https://www.businesstimes.com.sg/government-economy/covid-19-singapore-bars-visitors-from-daegu-cheongdo
https://www.straitstimes.com/singapore/health/spore-to-bar-visitors-from-cheongdo-daegu-in-s-korea
https://www.channelnewsasia.com/news/singapore/singapore-covid-19-coronavirus-daegu-cheongdo-south-korea-12468484

S’pore has to be prepared for more imported Covid-19 cases: Gan
Singapore must be prepared for more Covid-19 cases as the global spread of the disease increases the risk of importation, said Health Minister Gan Kim Yong. “While we have seen the number of new cases here in Singapore remain low over the last few days, we must remain aware that the global situation remains dynamic and we cannot afford to be complacent,” he said at a press conference.
https://www.straitstimes.com/singapore/health/spore-has-to-be-prepared-for-more-imported-covid-19-cases-gan

DORSCON level could be lowered if COVID-19 spreads widely worldwide: Gan Kim Yong
Singapore could lower its Disease Outbreak Response System Condition (DORSCON) level if COVID-19 spreads widely around the world and travel restrictions no longer prove useful, Health Minister Gan Kim Yong said on Tuesday (Feb 25).
https://www.channelnewsasia.com/news/singapore/dorscon-level-covid19-transmits-worldwide-coronavirus-12469484

Covid-19: Three scenarios, growth and policy implications for Asia ex-Japan
The potential macroeconomic impact of the Covid-19 outbreak is now being debated in terms of a temporary interruption to Asia ex-Japan’s nascent growth recovery versus derailment of such growth – as determined by the severity and duration of the episode.
https://www.businesstimes.com.sg/wealth-investing/covid-19-three-scenarios-growth-and-policy-implications-for-asia-ex-japan
*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