DAILY NEWS

Daily News – 29th December 2016

Singapore Economy

Rising global economic tide may not lift Singapore’s boat
The global outlook is forecast to improve in the coming year but Singapore may not be riding that wave. Economists cited several structural hurdles for the disconnect between global growth prospects and Singapore’s trade and export-oriented economy. Any benefits the Republic can reap from a brighter 2017 world economy will also be tempered by the health of its economy. “This time it’s different,” said Francis Tan, UOB economist. “Unlike in the past where there seemed to be quite a correlation between global growth and Singapore’s growth, sadly there’s a disjoint now.”
http://www.businesstimes.com.sg/government-economy/rising-global-economic-tide-may-not-lift-singapores-boat

Poll: 48% of firms pessimistic about 2017
The economic climate in Singapore deteriorated this year, said the majority of companies polled in a new survey, with almost half of them expecting the coming year to be even worse. The latest annual National Business Survey conducted by the Singapore Business Federation (SBF) also found that companies are hoping for more government assistance to tide over this period of slowing growth.
http://www.straitstimes.com/business/economy/poll-48-of-firms-pessimistic-about-2017

Singapore Real Estate

Retail property outlook 2017
http://www.businesstimes.com.sg/sites/default/files/attachment/2016/12/29/BT_20161229_LKCHART29_2666054_0.pdf

Prices of completed condos dip 0.7% in November: NUS
Prices of completed private apartments and condominiums slipped 0.7 per cent in November from a month ago. This is based on the flash estimate by National University of Singapore (NUS) for its overall Singapore Residential Price Index (SRPI) released on Wednesday. Faring the worst during the month were completed units (excluding small units of 506 square feet or below) in the Central Region, which fell 0.8 per cent during the month, followed by a 0.7 per cent price drop for completed units outside this region.
http://www.businesstimes.com.sg/real-estate/prices-of-completed-condos-dip-07-in-november-nus
http://www.straitstimes.com/business/property/private-condo-prices-continue-to-decline

Companies’ Brief

AA Reit’s redeveloped properties in Tuas valued at S$60.7m
Aims AMP Capital Industrial REIT (AA Reit) has completed the redevelopment of two industrial buildings in Tuas, raising the value of the redeveloped property by more than four times to S$60.7 million from the former S$14.1 million. The temporary occupation permit (TOP) for the S$41.7 million redevelopment was received on Tuesday. Two three-storey detached industrial buildings with an under-utilised plot ratio have been transformed into a five-storey ramp-up warehouse facility with exclusive loading and unloading bays at each level.
http://www.businesstimes.com.sg/companies-markets/aa-reits-redeveloped-properties-in-tuas-valued-at-s607m
http://www.straitstimes.com/business/companies-markets/aa-reit-boosts-value-of-warehouse

Chinese mall owner seeks to raise 586.4m yuan in Singapore IPO
A business trust holding three shopping malls in a city in China’s Guangdong province is seeking to raise 586.4 million yuan (S$122.2 million) through an initial public offering on the Singapore Exchange (SGX) mainboard. Dasin Retail Trust lodged a preliminary prospectus on Wednesday night, without indicating pricing or the number of units that would be in the retail and placement tranches. Its sponsor is Zhongshan Dasin Real Estate, which develops property in Zhongshan city in Guangdong.
http://www.businesstimes.com.sg/companies-markets/chinese-mall-owner-seeks-to-raise-5864m-yuan-in-singapore-ipo

Keppel Land selling 49.7% stake in Wuxi project for 619m yuan
Keppel Land, a wholly owned unit of Keppel Corporation, is divesting its effective 49.7 per cent interest in Cityone Development (Wuxi) Co Ltd (CDCL) to Tianhonglixin Real Estate Co Ltd for about 619 million yuan (S$127 million).
http://www.businesstimes.com.sg/companies-markets/keppel-land-selling-497-stake-in-wuxi-project-for-619m-yuan

YCH to build DistriPark in Nantong
YCH Group, an end-to-end supply chain management and logistics company, on Wednesday said that it has signed a memorandum of understanding (MOU) with CPC Nantong Northern New Town Management Committee to develop a DistriPark in the Nantong Integrated Logistics Park.
http://www.businesstimes.com.sg/companies-markets/ych-to-build-distripark-in-nantong

KLW Holdings
A unit of KLW Holdings is selling a freehold property at 301 Flinders Lane in Melbourne to Mill Place Investments for A$34.2 million (S$35.6 million). That was the highest of 13 bids received in an expression of interest exercise, said KLW Holdings, an investment holding firm whose subsidiaries manufacture and distribute wooden doors. The property – with a land area of 895 sq m and building areas of 5,690 sq m – has been generating rental income from a long-term lease to Victoria University. “The disposal will enable the group to realise the value of the property and improve the cash flow position of the company,” the firm said in a statement. The property had a net book value of A$25.6 million as at March 31 this year. It added that the group will realise a gain of about A$5.63 million from the sale, after deducting expenses and taxes.
http://www.straitstimes.com/business/companies-markets/company-briefs-keppel-land

LQS Construction sues Mencast and subsidiary for S$3.3m
Construction firm LQS Construction is suing offshore services provider Mencast Holdings and its wholly owned subsidiary Mencast Marine (MMPL) for S$3.3 million, the alleged balance related to a contract for the construction of an office building. Mainboard-listed Mencast announced on Wednesday that based on preliminary legal advice, the suit was without merit as it was not a party to the building contract. LQS Construction is the main contractor for the construction of the office building at Penjuru Road and MMPL is the employer.
http://www.businesstimes.com.sg/companies-markets/lqs-construction-sues-mencast-and-subsidiary-for-s33m

Views, Reviews & Forum

A slowing economy needs smarter, not more, regulations
As Asean countries seek closer economic integration by eliminating tariffs and boosting trade, some member nations have come up with more regulation that can slow down cooperation. There has been a four-fold increase in the number of non-tariff measures (NTMs) in Asean – from 1,634 to 5,975 – between 2000 and 2015.
http://www.businesstimes.com.sg/opinion/a-slowing-economy-needs-smarter-not-more-regulations

Banks drop some fixed-rate home loans amid interest rate uncertainty
A number of fixed-rate mortgage plans have been pulled from the shelves lately, as banks grapple with uncertainty over the pace of interest rate hikes. Market watchers noted that several banks are trying to ensure their margins are not squeezed by cheaply priced fixed-rate packages. Ms Grace Cheng, co-founder of personal finance website GET.com, told The Straits Times: “For example, Maybank removed its two-year, 1.6 per cent fixed- rate package in mid-November.”
http://www.straitstimes.com/business/banking/banks-drop-some-fixed-rate-home-loans-amid-interest-rate-uncertainty

Bad workmanship may be to blame for building incidents
I am greatly concerned by recent reports of cracks appearing in the walls of buildings, and of plaster cladding detaching and falling from a height (“Heed tell-tale signs of wall cracks” by Mr Steven Lo Chock Fei, Dec 21; and “Plaster slab falls from HDB block in Hougang“, Nov 29). Although these incidents do not necessarily indicate any loss of actual structural integrity, they are highly suggestive of poor workmanship.
http://www.straitstimes.com/forum/letters-in-print/bad-workmanship-may-be-to-blame-for-building-incidents