DAILY NEWS

Daily News – 28th Feb 2020 (Fri)

Singapore Real Estate

Samsung Hub level 11 sold at record S$3,800 psf
The 11th floor of Samsung Hub has transacted for nearly S$50 million or S$3,800 per square foot (psf) on a strata area of about 13,100 sq ft. This is the highest psf price achieved for an office floor in the 999-year leasehold building in the Raffles Place financial district, exceeding the previous high of S$3,550 psf set in 2018 for the 20th floor.
https://www.businesstimes.com.sg/real-estate/samsung-hub-level-11-sold-at-record-s3800-psf

Chinatown’s Porcelain Hotel up for sale with S$115m guide price
The Porcelain Hotel, a 138-key boutique hotel in Chinatown, is up for sale via expression of interest with a guide price of S$115 million, joint marketing agents CBRE and Edmund Tie said on Thursday. Housed in a row of adjoining conservation shophouses at 46 to 50 Mosque Street, the 99-year leasehold hotel occupies a land area of 10,143 square feet (sq ft) and an estimated gross floor area (GFA) of 38,686 sq ft.
https://www.businesstimes.com.sg/real-estate/chinatowns-porcelain-hotel-up-for-sale-with-s115m-guide-price-0

Competition watchdog gives nod to ARA, Logos deal
The Competition and Consumer Commission of Singapore (CCCS) has cleared the proposed merger between fund manager Logos China Investments and ARA Logistics, a unit of ARA Asset Management.
https://www.businesstimes.com.sg/real-estate/competition-watchdog-gives-nod-to-ara-logos-deal

Private home rents firm amid tight supply, rising expat demand
Rents of private homes are firming on rising expat demand, and landlords are once again able to charge more after the past few years of sluggish demand. “Listings are drying up, agents don’t have a lot of empty units to show prospective tenants,” said a seasoned property agent.
https://www.businesstimes.com.sg/real-estate/private-home-rents-firm-amid-tight-supply-rising-expat-demand

Hotels shut floors, ask staff to take leave amid downturn
Hotels are moving fast to tackle the downturn with one mothballing some floors to save on electricity and manpower and another telling staff to use two-thirds of their annual leave by the end of May due to the lack of guests.
https://www.straitstimes.com/singapore/hotels-shut-floors-ask-staff-to-take-leave-amid-downturn

Online sales help some retailers cushion blow from outbreak
The novel coronavirus outbreak may have turned wary consumers away from malls, but a corresponding shift to online shopping is providing some respite for retailers who previously took pains to build up integrated online sales channels.
https://www.businesstimes.com.sg/government-economy/online-sales-help-some-retailers-cushion-blow-from-outbreak

Singapore Economy

Singapore service sector takings up by 4.6% in Q4 2019
Singapore’s services businesses saw their turnover grow by 4.6 per cent year on year in the fourth quarter, according to Department of Statistics data out on Thursday. The broad-based increase was helped by recreation and personal services and education receipts, which both returned to expansion after declines in the three months prior
https://www.businesstimes.com.sg/infographics/singapore-service-sector-takings-up-by-46-in-q4-2019
https://www.straitstimes.com/business/economy/service-sector-sees-46-revenue-growth-in-q4

Companies’ Brief

Haw Par FY19 net profit edges up 1.8%
Haw Par Corporation on Thursday posted a net profit of S$182.2 million for the year ended Dec 31, up 1.8 per cent from S$179.1 million a year ago. The Tiger Balm maker’s revenue rose 2.6 per cent to S$244 million from S$237.8 million previously, mainly on higher sales from its healthcare business in the first half of 2019.
https://www.businesstimes.com.sg/companies-markets/haw-par-fy19-net-profit-edges-up-18

HL Finance posts 12.9% drop in net profit
Hong Leong Finance’s net profit for the year ended Dec 31 fell 12.9 per cent to S$103.1 million from S$118.3 million in 2018, the group said on Thursday. This came after it accounted for net loss allowance of doubtful debts amounting to S$1.6 million, against a net recovery of doubtful debts of S$2.2 million in 2018.
https://www.businesstimes.com.sg/companies-markets/hl-finance-posts-129-drop-in-net-profit

PropNex Q4 profit surges on commission income
Real estate agency PropNex yesterday posted a net profit of $8.2 million for its fourth quarter ended Dec 31, more than four times the year-ago net profit of $1.8 million. Earnings per share stood at 2.22 cents for the quarter, up from 0.49 cent in the year-ago period.
https://www.straitstimes.com/business/companies-markets/propnex-q4-profit-surges-on-commission-income

SPH Reit tenants to get more help to pull through virus outbreak
SPH Reit will give its tenants additional help to weather the Covid-19 outbreak, in the form of assistance packages tailored to individual tenants’ circumstances, it said on Thursday. The real estate investment trust (Reit) plans to engage its tenants to assess the impact of Covid-19 on their businesses…
https://www.businesstimes.com.sg/companies-markets/sph-reit-tenants-to-get-more-help-to-pull-through-virus-outbreak
https://www.straitstimes.com/business/property/sph-reit-to-offer-tailored-relief-packages-for-tenants

Yanlord Q4 net profit rises over 7 times to 2.1b yuan
Yanlord Land Group’s net profit for the fourth quarter ended Dec 31, 2019 surged to 2.1 billion yuan (S$417 million), more than eight times the 256.9 million yuan a year ago. This was mainly due to a climb in recognised revenue, which was driven by a significant increase in gross floor area…
https://www.businesstimes.com.sg/companies-markets/yanlord-q4-net-profit-rises-over-7-times-to-21b-yuan

Views, Reviews, Forum & Others

Economic and market fallout from Covid-19 set to worsen before it gets better
Investors have long wondered how much longer the extended bull market in the United States would last. Now the global outbreak of Covid-19, which was earlier largely confined to China, may be the untimely catalyst for a downward revaluation. Since news broke that the epidemic has intensified in South Korea…
https://www.businesstimes.com.sg/opinion/economic-and-market-fallout-from-covid-19-set-to-worsen-before-it-gets-better

Play up how Singapore shines amid crisis
Amid the doom and gloom brought on by the coronavirus epidemic on Singapore’s economy, there are several positive aspects worth highlighting. The efficiency of the various ministries working together to limit the spread of infection is to be lauded and can also be copied by others around the world.
https://www.straitstimes.com/forum/play-up-how-singapore-shines-amid-crisis

Get businesses to contribute to contingency fund for future crises
Despite our sound macroeconomic foundation, Singapore’s highly open economy is acutely vulnerable to contagion effects of global and regional economic crises. Ever since Independence, businesses in Singapore have relied on government fiscal policy interventions to tide them over when crises hit. The more serious the crisis – the more generous the Government.
https://www.straitstimes.com/forum/get-businesses-to-contribute-to-contingency-fund-for-future-crises

Navigating uncertainty and creating a resilient tomorrow
The outbreak of Covid-19 has impacted businesses and left them worried, perhaps much more than some of the big challenges CEOs have been battling so far, such as the mega US-China trade war, tapering economic growth, speed of technological change and skills shortage.
https://www.businesstimes.com.sg/opinion/navigating-uncertainty-and-creating-a-resilient-tomorrow

Leading tech firms can help create the future
The year 2020 began with challenges such as slower economic growth, the unforeseen Covid-19 outbreak and environmental problems. As businesses deal with the immediate challenges, it is encouraging to see a supporting Budget that companies, especially those driven by technology, can immediately access.
https://www.businesstimes.com.sg/opinion/leading-tech-firms-can-help-create-the-future

Asean moving up the startup menu for global investors
South-East Asia may have long been overshadowed by China and India on the global Venture Capital (VC) stage, but more investors are now looking to deploy their dry powder in the region – drawn by valuations that have yet to peak.
https://www.businesstimes.com.sg/garage/asean-moving-up-the-startup-menu-for-global-investors

Singapore Budget 2020

MPs urge more help for firms amid Covid-19 outbreak
Support for firms amid the Covid-19 outbreak was the main theme of the Budget debate’s second day. Of the 23 Members of Parliament (MPs) who took the floor, more than half lauded current efforts but asked if more can be done.
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/mps-urge-more-help-for-firms-amid-covid-19-outbreak
https://www.straitstimes.com/politics/mps-make-pitch-to-develop-resilience-of-local-firms

MPs: Coronavirus concerns present long-term opportunities
While the coronavirus outbreak has battered businesses, it has also created opportunities to better prepare Singapore for future challenges, MPs said yesterday. Speaking on day two of the debate on the Budget statement, they said these include getting more companies to adopt e-commerce, diversifying supply sources as well as making flexible work arrangements permanent for working parents and caregivers.
https://www.straitstimes.com/singapore/mps-virus-concerns-present-long-term-opportunities

More room to help workers upskill with SkillsFuture
MPs welcomed Budget measures such as the $500 SkillsFuture credit top-up for all citizens aged 25 and older, with an additional $500 for those aged 40 to 60, but said more could be done to help workers make use of the credit to get relevant skills for the future.
https://www.straitstimes.com/politics/more-room-to-help-workers-upskill-with-skillsfuture

MPs warn of impact from potential global tax rule changes
Proposed changes to global tax rules could threaten Singapore’s corporate tax revenue, said Mr Cedric Foo (Pioneer) as he explained why a hike in the goods and services tax (GST) is necessary.
https://www.straitstimes.com/politics/mps-warn-of-impact-from-potential-global-tax-rule-changes

Update on COVID-19 (Coronavirus Disease 2019) situation

Singapore won’t hesitate to act against those who flout measures to curb coronavirus: Shanmugam
The authorities will not hesitate to take strong action against those who break the rules meant to contain the spread of the coronavirus here, Minister for Home Affairs K. Shanmugam said yesterday. His comments come a day after it was announced that action has been taken against three Chinese nationals who flouted coronavirus containment measures here.
https://www.straitstimes.com/singapore/health/spore-wont-hesitate-to-act-against-those-who-flout-measures-to-curb-virus

Number of coronavirus cases in Singapore could rise, cautions MOH chief health scientist
The chief health scientist at the Ministry of Health (MOH), who led Singapore’s public health response to the 2003 severe acute respiratory syndrome (Sars) epidemic, has cautioned that the number of coronavirus cases here can rise any time.
https://www.straitstimes.com/singapore/health/number-of-cases-here-could-rise-cautions-moh-chief-health-scientist
*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