DAILY NEWS

Daily News – 30 Oct 2020 (Fri)

Singapore Real Estate

Shaw Tower redevelopment works to commence later this year
Works on the Shaw Tower site on Beach Road is set to start later this year, with the new development slated to come onstream by 2024. With a height of nearly 200 metres, the integrated development will deliver about 450,000 square feet of Grade A office space as well as retail and food & beverage (F&B) offerings on the ground floor. An earlier report had indicated the target completion date as 2023.
https://www.businesstimes.com.sg/real-estate/shaw-tower-redevelopment-works-to-commence-later-this-year

Robust Singapore housing market sparks fears of more curbs
While overall sentiment in Singapore’s real estate market improved in the third quarter this year, worries seem to be growing over possible government intervention for private residential properties. That’s according to the latest Real Estate Sentiment Index published by the National University of Singapore Real Estate (NUS+RE), which represents the Department of Real Estate and the Institute of Real Estate and Urban Studies at the university.
https://www.businesstimes.com.sg/real-estate/robust-singapore-housing-market-sparks-fears-of-more-curbs

Firm home sales lure bidders out in post-CB government land sales
Healthy home sales in the past five months whittled down property developers’ inventory, which has in turn boosted their appetite for land. This came through in the stronger-than-expected top bids for two 99-year leasehold sites at state land tender closings on Thursday.
https://www.businesstimes.com.sg/real-estate/firm-home-sales-lure-bidders-out-in-post-cb-government-land-sales
https://www.straitstimes.com/business/property/two-govt-land-sale-sites-draw-keen-interest-from-bidders

GIC unit to acquire 33 retail logistics assets in Germany
GIC’s wholly-owned unit, P3 Logistic Parks (P3), is expanding its presence in Germany, having inked an agreement to acquire 33 retail logistics assets. The real-estate portfolio is in prime urban locations in major German cities and towns, and spans over 650,000 square metres (sq m) of space, GIC said in a release on Thursday. GIC did not comment on the value of the acquisition.
https://www.businesstimes.com.sg/real-estate/gic-unit-to-acquire-33-retail-logistics-assets-in-germany

Singapore Economy

Sustainability and green finance to be factors in Singapore’s new infrastructure
As Singapore goes about building up its logistics infrastructure for a post-Covid-19 economy, alternative ways of funding these future projects will have to be found, especially with the country facing economic contraction brought by the pandemic, industry observers have told The Business Times.
https://www.businesstimes.com.sg/government-economy/sustainability-and-green-finance-to-be-factors-in-singapores-new-infrastructure

S’pore values continued trust, confidence of UK firms: Chan
Singapore values the continued confidence and trust of British companies in the country as a business hub, said Trade and Industry Minister Chan Chun Sing yesterday. Over 5,000 British businesses are operating in Singapore, with many using the Republic as a base and launch pad to tap the growth potential of South-east Asia, he noted.
https://www.straitstimes.com/business/spore-values-continued-trust-confidence-of-uk-firms-chan

EDB launches new campaign to signal S’pore is ready to fly again
Singapore is facing its toughest crisis in a generation, but it is in this time that the country and its people find the resilience and resolve to take on the impossible. This is the message the Economic Development Board (EDB) is sending to the world in a new marketing campaign video titled Dear World, launched yesterday.
https://www.straitstimes.com/business/edb-launches-new-campaign-to-signal-spore-is-ready-to-fly-again

Singapore-HK travel bubble key test for similar partnerships
The Singapore-Hong Kong air travel bubble will be an important test that will determine if similar arrangements for leisure travel can be made with other governments. Transport Minister Ong Ye Kung said: “We need to persuade our partners… that it is possible to stay safe and yet open.”
https://www.straitstimes.com/singapore/transport/singapore-hk-travel-bubble-key-test-for-similar-partnerships

Singapore reopens to China and Australia visitors from Nov 6
From Nov 6, Singapore will fully reopen to visitors from mainland China and Australia, two of its biggest sources of arrivals last year. While the move is cheered by tourism and hospitality players, it may not immediately revive local tourism, with tour operators citing the need for reciprocity and more details on testing regimes.
https://www.businesstimes.com.sg/government-economy/singapore-reopens-to-china-and-australia-visitors-from-nov-6
https://www.straitstimes.com/singapore/transport/spore-to-open-doors-to-china-visitors-who-clear-virus-test-here

Companies’ Brief

Ascott Residence Trust sees long stays, domestic markets leading recovery
Long-stay properties and domestic markets are expected to continue to drive Ascott Residence Trust’s (ART) gradual recovery, the stapled hospitality group’s managers said on Friday. This comes as its portfolio revenue per available unit (RevPAU) improved by 27 per cent on the quarter to S$47 for the July-September period, even though it was still down 70 per cent year on year.
https://www.businesstimes.com.sg/companies-markets/ascott-residence-trust-sees-long-stays-domestic-markets-leading-recovery

CapitaLand Commercial Trust to pay clean-up distribution of 2.56 S cents on Nov 19
For the July 1, 2020 to Oct 20, 2020 period, CapitaLand Commercial Trust (CCT) will pay a clean-up distribution of 2.56 Singapore cents per unit. This comprises two cents for July 1 to Sept 30 this year and 0.56 cent for Oct 1 to 20.
https://www.businesstimes.com.sg/companies-markets/capitaland-commercial-trust-to-pay-clean-up-distribution-of-256-s-cents-on-nov-19

CDLHT third-quarter revenue drops 38.7% to S$30.1m
CDL Hospitality Trusts’ (CDLHT) total revenue from master leases and managed hotels across all its markets decreased 38.7 per cent year on year to S$30.1 million for the third quarter ended Sept 30. Net property income (NPI) also tumbled, shrinking 57.4 per cent to S$15.2 million from the year-ago period, the stapled hospitality group’s managers said in an operational update on Friday.
https://www.businesstimes.com.sg/companies-markets/cdlht-third-quarter-revenue-drops-387-to-s301m

ESR-Reit posts 20.2% drop in Q3 DPU to 0.798 S cent
ESR-Reit’s distribution per unit (DPU) fell 20.2 per cent to 0.798 Singapore cent for its third quarter ended Sept 30, 2020, from one cent a year ago, its manager announced on Friday in a bourse filing. The manager also announced the release of S$3.5 million in distributable income from the first quarter of 2020, previously retained in view of Covid-19 uncertainties.
https://www.businesstimes.com.sg/companies-markets/esr-reit-posts-202-drop-in-q3-dpu-to-0798-s-cent

Far East Hospitality Trust’s net property income falls 36.4% for Q3
Far East Hospitality Trust’s (FEHT) net property income (NPI) slumped 36.4 per cent on the year to S$17.9 million for the third quarter ended Sept 30. Gross revenue was down 33.2 per cent to S$20.6 million, said the stapled group’s managers in a business update on Friday morning.
https://www.businesstimes.com.sg/companies-markets/far-east-hospitality-trusts-net-property-income-falls-364-for-q3

Keppel Corp turns corner in Q3 from record Q2 losses
Keppel Corp turned the corner sequentially in the third quarter after posting record losses of S$697 million in the preceding period that led Temasek Holdings to abandon a partial takeover bid in August and left the stock limping in the aftermath.
https://www.businesstimes.com.sg/companies-markets/keppel-corp-turns-corner-in-q3-from-record-q2-losses
https://www.straitstimes.com/business/companies-markets/keppel-posts-significantly-lower-net-profit-for-q3-0

MNACT’s H1 DPU falls 26% to 2.876 Singapore cents
Mapletree North Asia Commercial Trust (MNACT) on Thursday reported that its distribution per unit (DPU) for the first half ended Sept 30 fell 26 per cent to 2.876 Singapore cents, down from 3.887 cents a year ago.
https://www.businesstimes.com.sg/companies-markets/mnacts-h1-dpu-falls-26-to-2876-singapore-cents

Mapletree to hire up to 30 fresh grads for work-study traineeship
Mapletree Investments has launched a 12-month full-time work-study programme that will see it employ up to 30 trainees from local tertiaries. The programme is fully funded by Mapletree and aims to support fresh graduates who face difficulty in finding employment in Singapore amid the global Covid-19 pandemic, Mapletree said in a statement on Wednesday.
https://www.businesstimes.com.sg/government-economy/mapletree-to-hire-up-to-30-fresh-grads-for-work-study-traineeship

Sabana Reit renews 58% of leases expiring in 2020
Sabana Shari’ah Compliant Industrial Reit’s (Sabana Reit) manager on Friday said 58 per cent of leases by gross rental income expiring in fiscal 2020 have been renewed. The manager also expects rental contributions from the New Tech Park’s asset enhancement initiative (AEI) to start from Q2 next year, it said in a bourse filing on Friday.
https://www.businesstimes.com.sg/companies-markets/sabana-reit-renews-58-of-leases-expiring-in-2020

Views, Reviews, Forum & Others

Long road ahead to economic recovery
The Monetary Authority of Singapore (MAS) provided a sobering assessment of the state of the Singapore economy, which is in the throes of a recession that is likely to be unusually deep and protracted. In the October edition of its macroeconomic review, the MAS pointed out that the recession is also atypical. Peak-to-trough declines in real private consumption exports, imports and private investment have been sharper than usual and the drop in employment has been bigger.
https://www.straitstimes.com/opinion/st-editorial/long-road-ahead-to-economic-recovery-0

Unparking to reclaim lots of space in cities
Hidden in cities, vast swathes of land are waiting to be reclaimed. It is the space devoted to parking cars, which sit idle for 95 per cent of the day. In Singapore, 5.6 million people can count on 1.3 million parking spaces – more than twice the number of cars.
https://www.straitstimes.com/opinion/unparking-to-reclaim-lots-of-space-in-cities-0

Singapore businesses must pay attention to ESG
The awareness of business impact on the environment could be seen as a relatively new phenomenon, perhaps dramatically encapsulated by Greta Thunberg’s “how-dare-you” speech in 2019. Certainly, global appreciation of human activity’s environmental impact has sharpened, ironically in part due to the Covid-19 pandemic.
https://www.businesstimes.com.sg/opinion/singapore-businesses-must-pay-attention-to-esg

Co-ops connect with partners to do well and do good
Co-operatives are often contrasted with corporations. Corporations are said to focus on maximising profit, while co-operatives are widely believed to exist for the nobler aims of positive social change. In reality, the lines are often fuzzier.
https://www.businesstimes.com.sg/opinion/co-ops-connect-with-partners-to-do-well-and-do-good

‘Efficiency through scale’ now seems outmoded. Here’s what to do about it
The year 2020 has challenged many assumptions on globalisation and, by extension, disrupted global businesses at an unprecedented level, as a result of closed borders to curb the spread of Covid-19. Around the world, businesses and industries have been impacted and are recovering at their own pace, in a process largely affected by how well their respective countries are handling the pandemic.
https://www.businesstimes.com.sg/leadership-management/efficiency-through-scale-now-seems-outmoded-heres-what-to-do-about-it

Bank lending in Sept down for seventh straight session: MAS data
Singapore’s bank lending in September dipped for the seventh straight session on weaker business loans, preliminary data from the Monetary Authority of Singapore showed on Friday. Loans through the domestic banking unit – which captures lending in all currencies, but reflects mainly Singapore-dollar lending – stood at S$677.46 billion in September, compared with S$677.86 billion a month ago.
https://www.businesstimes.com.sg/banking-finance/bank-lending-in-sept-down-for-seventh-straight-session-mas-data
https://www.straitstimes.com/business/economy/singapore-bank-lending-down-for-7th-straight-month-in-september-mas-data

Asia’s massive infrastructure needs reviving project bonds
As Asia’s massive infrastructure needs continue to grow, it is clear that traditional bank debt alone is not enough to plug the widening gaps. And the need for over US$26 trillion in infrastructure investments until 2030 has sparked the revival of project bonds in capital markets, with about six US-dollar issuances in the region since 2017.
https://www.businesstimes.com.sg/banking-finance/asias-massive-infrastructure-needs-reviving-project-bonds

Times are bad, putt golf membership prices are teeing off
Travel curbs coupled with a greater demand for golf flight times have driven up golf club membership prices, some by 30 per cent or more since the “circuit breaker” began in March. It also paints the picture of a different reality for the rich in Singapore against the recessionary backdrop of Covid-19.
https://www.businesstimes.com.sg/life-culture/times-are-bad-putt-golf-membership-prices-are-teeing-off

Update on COVID-19 (Coronavirus Disease 2019) Situation

No new Covid-19 cases in community, dorms for two days in a row
The number of daily coronavirus cases remains low, with none in the community or in migrant worker dormitories for two days in a row, said the Ministry of Health (MOH) yesterday. But there has been a slight uptick in the average number of new community cases.
https://www.straitstimes.com/singapore/health/no-new-cases-in-community-dorms-for-two-days-in-a-row

Full protective gear, routine testing for Changi Airport front liners
Staff at Changi Airport who come into close contact with passengers – such as swab assistants – will have to don full personal protective equipment (PPE) at work and be tested for Covid-19 every two weeks. About 2,500 airport workers have already been tested for Covid-19 so far since last week, all with negative results. Another 1,000 or so more workers will be tested in the coming days, Transport Minister Ong Ye Kung said yesterday.
https://www.straitstimes.com/singapore/transport/full-protective-gear-routine-testing-for-airport-front-liners

Singapore tracking Covid-19 situation in nations it has travel pacts with
Singapore is closely watching the situation in countries with which it has travel agreements – especially those seeing a resurgence in Covid-19 infections, said Transport Minister Ong Ye Kung. Even as the case numbers spike in countries such as Germany and Indonesia, with which Singapore has green lane arrangements for business travel, it is important to figure out which groups are getting infected, he said yesterday.
https://www.straitstimes.com/singapore/transport/singapore-tracking-situation-in-nations-it-has-travel-pacts-with

New lab at Changi Airport to shorten testing time for travellers
A new Covid-19 testing lab at Changi Airport is slated to open in the first quarter of next year, and it will use a test kit that can shorten the time needed for results from 2.5 hours to 1.5 hours. The wait may be even shorter for travellers from countries deemed to have lower risks of Covid-19 infection, as the authorities study the feasiblity of introducing less sensitive but quicker tests, Transport Minister Ong Ye Kung said yesterday.
https://www.straitstimes.com/singapore/transport/new-lab-at-changi-to-shorten-testing-time-for-travellers

Long queues to collect TraceTogether tokens
Long queues formed at Marsiling Community Club yesterday as national distribution of TraceTogether tokens resumed in a limited fashion. Marsiling is the first community centre where tokens are available again, after distribution was halted on Wednesday by the Smart Nation and Digital Government Group (SNDGG).
https://www.straitstimes.com/tech/long-queues-to-collect-tokens
https://www.straitstimes.com/tech/tech-news/tracetogether-token-collection-raises-questions
*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