DAILY NEWS

Daily News – 26th 27th and 28th May 2018

Singapore Economy

April factory output surge stumps economists
Singapore’s factory output continued to surge in April, defying expectations that the manufacturing sector will slow down. The momentum of the sector may have taken economists by surprise, but they still expect the growth pace to ease in the coming quarters, weighed down by moderating global semiconductor demand and the high base of the electronics cluster last year.
https://www.businesstimes.com.sg/government-economy/april-factory-output-surge-stumps-economists
https://www.businesstimes.com.sg/government-economy/singapores-april-factory-output-up-91-sees-expansion-across-all-clusters
https://www.straitstimes.com/business/economy/april-factory-output-defies-expectations
https://www.channelnewsasia.com/news/singapore/singapore-manufacturing-output-rose-9-1-in-april-continues-10277058

Singapore’s service sector takings up 8.5% in Q1
Singapore’s service sector had a strong start to the year, with business receipts up 8.5 per cent in the first three months of 2018 compared to the same period a year earlier, according to latest figures from the Statistics Department on Friday. However, on a quarter-on-quarter non-seasonally-adjusted basis, takings were up just a marginal 0.1 per cent from the last quarter of 2017.
https://www.businesstimes.com.sg/government-economy/singapores-service-sector-takings-up-85-in-q1
https://www.straitstimes.com/business/economy/service-sectors-takings-up-85-in-robust-start-to-year

Singapore start-ups look to a changing France for growth
France is already well-known among food lovers and culture buffs, but the country is increasingly attracting attention from a different group – Singapore start-ups keen on partnerships and overseas expansion. A growing number of Singapore firms are eyeing the French tech ecosystem – which has been garnering more global attention on the back of French President Emmanuel Macron’s push to turn the country into a “startup nation”.
https://www.businesstimes.com.sg/government-economy/singapore-start-ups-look-to-a-changing-france-for-growth

European leaders back speedy ratification of EU-Singapore FTA: Iswaran
There is widespread support for a trade deal between Singapore and the European Union (EU) with key European leaders keen to have it come into force as soon as possible, said S Iswaran, Minister-in-charge of Trade Relations.
https://www.businesstimes.com.sg/government-economy/european-leaders-back-speedy-ratification-of-eu-singapore-fta-iswaran

Singapore Real Estate

JTC enters new industrial revolution with 3 key commitments
In the face of uncertain global geopolitics, accelerating technological revolution and changing domestic demographics, government agency and industrial landlord JTC has spelt out three key commitments at this critical juncture of a new industrial revolution.
https://www.businesstimes.com.sg/companies-markets/jtc-enters-new-industrial-revolution-with-3-key-commitments
https://www.straitstimes.com/singapore/jtc-celebrates-its-50th-anniversary
https://www.straitstimes.com/politics/jtc-hailed-for-pioneering-role-in-spores-progress
https://www.channelnewsasia.com/news/singapore/hope-for-jtc-to-continue-tradition-of-high-standards-and-bold-10278142
https://www.todayonline.com/singapore/bold-and-creative-jtc-asset-singapores-success-pm-lee

Two-year plan to spruce up Dempsey area
A new lifestyle hot spot looks set to be coming up in the Dempsey area as part of plans by the Singapore Land Authority (SLA) to rejuvenate Tanglin Village, The Straits Times has learnt. Blocks 15, 16 and 16A, adjacent to the hip Como Dempsey enclave, have been identified for the “initial implementation of rejuvenation plans” and returned to the SLA, a spokesman said in response to queries, adding that details will be announced when ready.
https://www.straitstimes.com/singapore/two-year-plan-to-spruce-up-dempsey-area

Less than a year before lease runs out for Bugis Village tenants
A cluster of 34 pre-war shophouses, Bugis Village, has entered the final year of a 30-year lease, leaving tenants and patrons uncertain about the future of the area, which surrounds the popular Bugis Street market. The shophouses are all managed by CapitaLand Commercial Trust (CCT), which has confirmed to The Straits Times that the authorities are due to take back Bugis Village when the lease expires on March 31 next year.
https://www.straitstimes.com/singapore/less-than-a-year-before-lease-runs-out-for-bugis-village-tenants

Indonesian tycoon buys 2 Bt Pasoh shophouses
The family office of Indonesian tycoon Prajogo Pangestu has picked up a pair of adjoining freehold shophouses in Teo Hong Road in the Bukit Pasoh Conservation Area for nearly S$22 million. The properties are a stone’s throw from Outram MRT Station. One of them is understood to have been sold by Lim Chun Shuang, son of Lim Hock San, president and chief executive of United Industrial Corporation.
https://www.businesstimes.com.sg/real-estate/indonesian-tycoon-buys-2-bt-pasoh-shophouses

Leonie Gardens goes en bloc with S$800m reserve price
Huttons Asia announced it is launching Leonie Gardens for collective sale by tender with a reserve price of S$800 million. The reserve price translates to S$2,104 per square foot based on existing GFA (gross floor area), or S$2,021 per square foot per plot ratio (psf ppr) if a 10 per cent balcony space is included, subject to approval. The tender will close at 3pm on June 21.
https://www.businesstimes.com.sg/real-estate/leonie-gardens-goes-en-bloc-with-s800m-reserve-price
https://www.straitstimes.com/business/property/leonie-gardens-up-for-collective-sale-at-800m

Eight shophouses in Jalan Besar to be conserved, another 24 under consideration by URA
Eight shophouses in Jalan Besar will be put up by the Urban Redevelopment Authority (URA) for conservation status. The conservation of these eight shophouses – located at 593 Serangoon Road, 458 Race Course Road and 1 to 11 Balestier Road – will complete a cluster of heritage buildings in Serangoon Road, Race Course Road and Tessensohn Road.
https://www.businesstimes.com.sg/real-estate/eight-shophouses-in-jalan-besar-to-be-conserved-another-24-under-consideration-by-ura

Companies’ Brief

Sembcorp hires Contact Energy CFO; current CFO Koh to head regional utilities business
Sembcorp Industries has hired Contact Energy chief financial officer (CFO) Graham Cockroft to be its new group chief financial officer with effect from Sept 3, 2018, the rig builder announced on Monday before the market opened. Sembcorp’s current CFO, Koh Chiap Khiong, has moved on to head the group’s utilities business in Singapore, South-east Asia and China within Sembcorp’s Senior Leadership Council. Mr Koh has also been named chief transformation officer for the group.
https://www.businesstimes.com.sg/companies-markets/sembcorp-hires-contact-energy-cfo-current-cfo-koh-to-head-regional-utilities
https://www.straitstimes.com/business/companies-markets/sembcorp-hires-contact-energy-cfo-current-cfo-koh-to-head-regional

Yoma Strategic, Pernod Ricard joint venture eyes Myanmar’s whisky industry
Mainboard-listed Yoma Strategic Holdings on Friday said it intends to form a joint venture (JV) company with Pernod Ricard alongside other partners to produce and distribute whisky in Myanmar. Upon completion of the deal, Pernod Ricard will bring in an “internationally experienced management team” and become the largest shareholder in the new firm.
https://www.businesstimes.com.sg/companies-markets/yoma-strategic-pernod-ricard-joint-venture-eyes-myanmars-whisky-industry-0
https://www.straitstimes.com/business/companies-markets/yoma-strategic-and-pernod-ricard-eye-joint-mynmar-whisky-venture

Metro’s Q4 bottom line turns red due to losses from associates
Losses from associates dragged Metro Holdings into the red, as the property and retail group posted a fourth-quarter net loss of S$1.9 million on Friday. This was a reversal from the net profit of S$34.2 million a year ago.
https://www.businesstimes.com.sg/companies-markets/metros-q4-bottom-line-turns-red-due-to-losses-from-associates
https://www.straitstimes.com/business/metro-pulled-into-red-in-q4-by-associates-losses

Incoming SMRT chief gearing up to take the helm
Transition planning is already under way to help incoming SMRT chief executive Neo Kian Hong get up to speed before he takes the reins of the transport giant on Aug 1. Mr Neo, who has no prior experience running a rail business, is making site visits and getting guidance from company executives, said chairman Seah Moon Ming.
https://www.straitstimes.com/singapore/transport/incoming-smrt-chief-gearing-up-to-take-the-helm

Stamford Land posts Q4 net profit of S$25.6m
Stamford Land saw its fourth-quarter net profit expand to S$25.63 million from S$8.93 million for the year-ago period on increases in revenue, interest income and dividend income. Earnings per share for the quarter ended Mar 31, 2018 rose to 2.97 Singapore cents, up from 1.03 Singapore cents for Q4 FY17.
https://www.businesstimes.com.sg/companies-markets/stamford-land-posts-q4-net-profit-of-s256m

Views, Reviews, Forum & Others

Freehold collective sale sites in Singapore ripe for developers
The market got off to a firm start this year with 17 collective sales deals worth $5.8 billion transacted in the first quarter, 29 per cent higher than the volume in preceding quarter. With the upturn of the residential prices in the second half of last year, coupled with the paucity of the government land sale (GLS) sites on the confirmed list for the first half of 2018, the current collective sale cycle still has room for further growth.
https://www.straitstimes.com/business/invest/freehold-collective-sale-sites-in-singapore-ripe-for-developers

The Big Read: Social stratification — a poison seeping into S’pore’s housing estates and schools
Singapore — For years, policymakers in Singapore have been focusing on ways to narrow the income gap, as countries around the world seek to mitigate the side-effects of globalisation. Social inequality has become a buzz phrase among national discussions, and the issue remains a work in progress.
https://www.todayonline.com/singapore/big-read-social-stratification-poison-seeping-spores-housing-estates-and-schools

The future of money
Long gone are the days of coins and notes stuffed in pillowcases. The inexorable march of progress has ushered in an era of digital currency. Trading dollars and cents for bits and bytes has brought fresh business opportunities to both banks and financial technology upstarts – alongside greater risks of coups such as 2016’s grand multi-million-dollar Bangladesh Bank heist. But it’s tough to boldly go into a brave new world when there’s nobody there yet. Singaporeans’ affection for cold, hard cash still remains – much to the dismay of many stakeholders, from mobile payment startup bosses to the country’s premier.
https://www.businesstimes.com.sg/brunch/the-future-of-money

Singapore growth broadening out
Singapore’s economy started the year on a good footing, but downside risks such as trade tensions and emerging market vulnerabilities could throw a spanner in the works for the rest of this year. The economy expanded 4.4 per cent in the first quarter of this year, in line with the expectations of economists and faster than the 3.6 per cent growth in the preceding quarter.
https://www.straitstimes.com/business/economy/spore-growth-broadening-out

Why faltering NY house prices are an ominous sign
Clouds are hovering over New York’s housing market. A couple of years ago, property prices were spiralling ever higher – much like the new luxury skyscrapers now springing up in midtown Manhattan.
https://www.straitstimes.com/opinion/why-faltering-ny-house-prices-are-an-ominous-sign