DAILY NEWS

Daily News – 28th June 2017

Singapore Economy

Singapore banks to be allowed to invest in digital consumer platforms
The Monetary Authority of Singapore (MAS) will let banks in Singapore invest in digital consumer platforms such as Carousell and Qoo10, so that they can have stakes in such “permissible non-financial businesses” related to or which complement their core financial businesses. Minister for Finance Heng Swee Keat said on Tuesday evening that MAS will streamline regulatory requirements for banks seeking to conduct or invest in digital platforms that match buyers and sellers, and engage in the online sale of consumer goods and services. The investment in such related businesses will, however, be capped at 10 per cent of the bank’s capital funds.
http://www.businesstimes.com.sg/banking-finance/singapore-banks-to-be-allowed-to-invest-in-digital-consumer-platforms-0
http://www.straitstimes.com/business/banking/banks-to-be-allowed-to-operate-invest-in-digital-sales-platforms
http://www.businesstimes.com.sg/banking-finance/big-push-for-digital-payments-with-new-p2p-fund-transfer
http://www.straitstimes.com/business/banking/go-cashless-with-paynow-fund-transfers-from-july-10?login=true
http://www.channelnewsasia.com/news/singapore/new-service-paynow-to-allow-interbank-transfers-using-mobile-8982774
http://www.todayonline.com/business/mas-allows-banks-invest-some-non-financial-businesses

China-Singapore FTA upgrade progressing well: DPM Tharman
Singapore and China have made good progress in the China-Singapore Free Trade Agreement (CSFTA) upgrade over three rounds of negotiations, Deputy Prime Minister and Coordinating Minister for Economic and Social Policies Tharman Shanmugaratnam said during an official visit to Dalian, China on Tuesday.
http://www.businesstimes.com.sg/government-economy/china-singapore-fta-upgrade-progressing-well-dpm-tharman

Manufacturing growth slows, but long-term trends offer tech support
The thesis behind the year-long rally in tech stocks remains solid despite slower-than-expected industrial production and forecasts for a tempering of growth in the second half of the year. While some of the heady year-on-year growth numbers that were seen in previous quarters may not last, the development of the digital economy continues apace, and should support fundamentals for tech companies even after accounting for base effects.
http://www.businesstimes.com.sg/companies-markets/manufacturing-growth-slows-but-long-term-trends-offer-tech-support

Singapore Real Estate

S’pore named 9th most economically vibrant city globally
Singapore has shot up by 12 places in a league table that ranks cities on opportunities for property investment. The index, launched last August, looks at factors such as retail sales, household income, adult population size and gross domestic product to determine how economically vibrant a city is. Singapore was ranked ninth, up from 21st last December, by asset manager Schroders, which compiles the index of 161 cities.
http://www.straitstimes.com/business/spore-named-9th-most-economically-vibrant-city-globally

Mortgage loan applications up 20% in first quarter
Mortgage loan applications have seen a 20 per cent increase in the first quarter of 2017 from Q4 2016, Credit Bureau Singapore (CBS) has found in its second instalment of the Consumer Credit Index (CCI). According to CBS data, mortgage loan applications saw the most growth, followed by motor vehicle loan applications at 4.13 per cent. Credit card and personal loan applications, however, dipped 5.97 per cent and 5.94 per cent respectively.
http://www.businesstimes.com.sg/banking-finance/mortgage-loan-applications-up-20-in-first-quarter
http://www.straitstimes.com/business/banking/mortgage-loan-applications-up-20-in-q1-credit-bureau

Companies’ Brief

Croesus suspended; Blackstone speculated to be suitor
A trading halt by mainboard-listed Croesus Retail Trust on Tuesday got the market abuzz with speculation of a buyout offer for the trust. A report on Tuesday named US private equity firm Blackstone as the offeror, citing anonymous sources. It did not state the offer price. In April Croesus had announced that it had been approached with a potential acquisition offer, although the trust did not identify the offeror, only saying that discussions were preliminary, with no certainty of leading to any transaction.
http://www.businesstimes.com.sg/companies-markets/croesus-suspended-blackstone-speculated-to-be-suitor
http://www.straitstimes.com/business/blackstone-group-close-to-deal-to-buy-japans-croesus-retail-trust

GIC said to have tackled grouses in ongoing sale of GLP
The litany of complaints about the biggest Asian buyout deal became so bad that Singapore’s sovereign wealth fund decided to act. A bidding process for Global Logistic Properties, the US$9.7 billion warehouse developer, has been running since the start of the year. In May, representatives of GIC Pte Ltd, the company’s largest shareholder, called the GLP working team managing the sale into their offices, according to people familiar with the matter.
http://www.businesstimes.com.sg/companies-markets/gic-said-to-have-tackled-grouses-in-ongoing-sale-of-glp
http://www.straitstimes.com/business/gic-nudging-glp-to-address-gripes-over-sale
https://www.bloomberg.com/news/articles/2017-06-27/singapore-state-fund-said-to-confront-complaints-in-sale-of-glp

CDL Hospitality Trusts buys Munich hotel for 100 million euros
CDL Hospitality Trusts (CDLHT) announced on Tuesday its acquisition of Pullman Hotel Munich and its office and retail components for about 100 million euros (S$153.8 million). The deal will be fully funded by debt financing and is accretive with a net property income yield of 5.6 per cent for FY 2016. This is CDLHT’s first acquisition in continental Europe.
http://www.businesstimes.com.sg/companies-markets/cdl-hospitality-trusts-buys-munich-hotel-for-100-million-euros
http://www.straitstimes.com/business/cdl-trust-enters-europe-market-with-hotel-buy

Ascott expands in China amid rising demand
Amid rising demand from Chinese travellers, property giant CapitaLand unit The Ascott Limited said that it has signed contracts to manage seven serviced residences in China. This will add more than 1,300 apartment units to the pool already managed by Ascott in China. Ascott chief executive officer Lee Chee Koon noted in a press release that China remains the firm’s biggest market.
http://www.businesstimes.com.sg/real-estate/ascott-expands-in-china-amid-rising-demand

CapitaLand unit inks three China mall management contracts
Property developer CapitaLand said that it has, through shopping mall business CapitaLand Mall Asia, signed three new management contracts in China. In Chengdu, CapitaLand has been commissioned by Sichuan Da Yi Real Estate Co Ltd to manage the retail component of Leshijie, an integrated development in Pidu district.
http://www.businesstimes.com.sg/companies-markets/capitaland-unit-inks-three-china-mall-management-contracts
http://www.straitstimes.com/business/companies-markets/capitaland-secures-3-more-management-contracts-in-china

Frasers Logistics & Industrial Trust places out 78m new shares at S$1.01 per unit
Australian industrial property play Frasers Logistics & Industrial Trust (FLT) said that its private placement of 78 million new units is 4.6 times subscribed, and will be issued at S$1.01 per new unit. There was strong participation from new and existing institutional investors, it said. Net proceeds will be used to partially fund the estimated total cost of the proposed acquisition of seven properties.
http://www.businesstimes.com.sg/companies-markets/frasers-logistics-industrial-trust-places-out-78m-new-shares-at-s101-per-unit
http://www.straitstimes.com/business/companies-markets/frasers-logistics-industrial-trust-private-placement-46-times-subscribed

Views, Reviews & Forum

Mixed signals hint at property market recovery
The saying goes that a rising tide lifts all boats. But to use the aphorism to describe the private residential property market here would be somewhat inappropriate. There is gathering optimism in the sector for sure – home sales are up and developers are falling over themselves tabling audacious bids for sites, and there is a resurgence in collective sale activity.
http://www.straitstimes.com/opinion/mixed-signals-hint-at-property-market-recovery

Decision time for building firms
As high technology transforms the construction industry, there will inevitably be those left in the dust. These are mostly smaller construction companies resistant to the national push for prefabricated building and virtual building design technologies, which do not come cheap. But, as Second Minister for National Development Desmond Lee stressed during an interview last week, the Government hopes that all firms, big and small, can be a part of the transformation.
http://www.straitstimes.com/singapore/housing/decision-time-for-building-firms