DAILY NEWS

Daily News – 3rd August 2017

Singapore Economy

Manufacturing expands for 11th straight month
The manufacturing sector continued to power ahead last month on the back of continued strong expansion. But the sector, which makes up a fifth of the economy and has been a key growth driver this year, has likely peaked and could see activity moderate in the coming months, economists say. The Purchasing Managers’ Index (PMI) – an early indicator of manufacturing activity – logged its 11th straight month of expansion last month. The reading of 51 was up marginally from June’s 50.9.
http://www.straitstimes.com/business/economy/manufacturing-expands-for-11th-straight-month
http://www.straitstimes.com/business/economy/manufacturing-posts-strong-growth-again
http://www.businesstimes.com.sg/infographics/sustainable-growth
http://www.channelnewsasia.com/news/singapore/singapore-s-manufacturing-sector-expands-for-11th-straight-month-9084350

Build up capabilities to ride the waves of changes ahead: Heng Swee Keat
The best chance for Singapore to roll with the waves of changes up ahead lies in building strong corporate and human capabilities, Finance Minister Heng Swee Keat said on Wednesday. The full impact of the ageing population, technological progress and the rise of emerging economies tomorrow would not be felt – and no one can predict the future – but the country can still prepare for it, he said.
http://www.businesstimes.com.sg/government-economy/build-up-capabilities-to-ride-the-waves-of-changes-ahead-heng-swee-keat
http://www.straitstimes.com/singapore/embrace-lifelong-learning-and-doing-heng-swee-keat-urges-singaporeans?login=true
http://www.todayonline.com/singapore/recipe-ride-waves-change-firms-workers-must-build-capabilities

New Payments Council to plot S’pore’s cashless drive
The Monetary Authority of Singapore (MAS) has roped in representatives from several tech companies into its newly formed payments council, as its members look at how to build a cashless society in Singapore. The individuals include ride-hailing company Grab’s founder Anthony Tan, CEO of online retail platform Lazada Singapore Alexis Lanternier and group president of South-east Asia’s most valuable startup Sea Ltd, Nick Nash.
http://www.businesstimes.com.sg/banking-finance/new-payments-council-to-plot-spores-cashless-drive

Singapore dollar surge leaves market expecting pullback in H2
Has the Singapore dollar (SGD) gone up too much? Yes, say analysts, who believe that it would start to retrace against the US dollar in the second half of this year. Philip Wee, DBS Bank senior currency strategist, believes that the greenback is oversold. Year to date, the local unit has surged over 6 per cent against the greenback. The SGD and Thai baht have proven to be the strongest South-east Asian currencies this year.
http://www.businesstimes.com.sg/banking-finance/singapore-dollar-surge-leaves-market-expecting-pullback-in-h2

GIC-linked China lending platform to sell US consumer debt in Asia
Armed with a fresh US$220 million injection from Singapore’s sovereign wealth fund GIC and a group of investors, Chinese peer-to-peer lending platform Dianrong plans to launch a global platform to sell US consumer debt to Asian investors via offices in Singapore and Hong Kong. The new platform, FinEx Asia, will source consumer loans from the US and connect its investors to these assets, which pay out a fixed monthly return to investors, top executives from the start-up told The Business Times.
http://www.businesstimes.com.sg/companies-markets/gic-linked-china-lending-platform-to-sell-us-consumer-debt-in-asia

More leeway for global start-ups to operate here
A government scheme to attract global start-ups has been enhanced to make it even easier for them to establish operations here. The initiative, which kicks in today, involves broadening the criteria for start-ups that want to apply for the EntrePass scheme. Applicants have been assessed on four innovation criteria, such as whether they have financing from a government-recognised venture capital fund or a collaboration with a Singapore research institute.
http://www.straitstimes.com/business/companies-markets/more-leeway-for-global-start-ups-to-operate-here

Singapore Real Estate

JTC LaunchPad has grown into dynamic startup ecosystem: NUS study
The JTC LaunchPad @ one-north has matured into a dynamic ecosystem for startups, according to latest research findings by TechSG which were presented on Wednesday. For starters, the number of tenants (startups and facilitators such as angel investors, venture capitalists and legal firms) grew 65 per cent to 425 from November 2015 to March 2017.
http://www.businesstimes.com.sg/technology/jtc-launchpad-has-grown-into-dynamic-startup-ecosystem-nus-study
http://www.todayonline.com/singapore/launchpad-attracts-more-high-tech-start-ups

Companies’ Brief

GLP appoints Evercore Asia as new independent financial adviser
Global Logistic Properties Limited (GLP) said on Wednesday that it has appointed Evercore Asia (Singapore) as the new independent financial adviser to replace ANZ. This follows a clarification from the Securities Industry Council of Singapore (SIC) on whether ANZ can be considered independent. ANZ was appointed last month to advise GLP’s independent directors in making a final recommendation to shareholders over the recent S$3.38 per share offer for the company.
http://www.businesstimes.com.sg/companies-markets/glp-appoints-evercore-asia-as-new-independent-financial-adviser

CapitaLand Q2 net profit up 97%
CapitaLand Limited posted a net profit of S$579.3 million for the second quarter of 2017, a 97 per cent jump from a year ago. This was thanks to better operating performance, higher revaluation gains from investment properties in Singapore and China, as well as higher portfolio gains arising mainly from the divestments of Innov Tower in China and 18 rental housing properties in Japan.
http://www.businesstimes.com.sg/companies-markets/capitaland-q2-net-profit-up-97
http://www.straitstimes.com/business/companies-markets/capitaland-q2-profit-jumps-97-boosted-by-divestments-revaluation-gains

OUE C-Reit’s Q2 DPU falls 15.4%
Office space landlord OUE Commercial Reit (OUE C-Reit) reported a fall of 15.4 per cent for its second quarter distribution per unit (DPU) to 1.15 Singapore cents from 1.36 Singapore cents in the year-ago period, the group said in a Singapore Exchange filing on Wednesday evening. In March 2017, the company completed a private placement of 233,281,400 new units for fundraising purposes.
http://www.businesstimes.com.sg/companies-markets/oue-c-reits-q2-dpu-falls-154

Far East Orchard’s Q2 profit plunges 97.3%
Hospitality player Far East Orchard Limited marked a 97.3 per cent plunge in net profit to S$1 million for the second quarter ended June 30 mainly due to a slump in share of profit of joint ventures. The group’s share of results of joint ventures fell to S$57,000 from S$36.7 million a year ago mainly due to the absence of a one-time recognition of profits from the sale of units in a joint venture project SBF Center, which obtained its temporary occupation permit in June 2016.
http://www.businesstimes.com.sg/companies-markets/far-east-orchards-q2-profit-plunges-973

Genting Singapore boasts Q2 turnaround
Bolstered by stronger contributions from its gaming business, casino operator Genting Singapore achieved a second-quarter net profit attributable to equity-holders of S$143.32 million, a turnaround from a loss of S$10.54 million a year ago. As was the case for the year-ago quarter, this was after setting aside S$29.39 million for holders of perpetual capital securities. Revenue for the three months ended June 30, 2017, was 24 per cent higher year-on-year at S$596.08 million on the back of higher rolling win percentage in the premium player business.
http://www.businesstimes.com.sg/companies-markets/genting-singapore-boasts-q2-turnaround
http://www.straitstimes.com/business/companies-markets/genting-singapore-posts-sterling-q2-gains

Views, Reviews & Forum

More disruption ahead for hospitality sector
The government’s move to halve the minimum rental period for private homes from six months to three months appears to be a middle-of-the-road approach to meeting clamouring demands from different camps. Despite what some see as a “measured” move, there are sombre implications for incumbent hospitality players. Singapore is not alone in reviewing its rules as cities globally are doing likewise in light of the pervasive use of home-sharing platforms like Airbnb and Homeaway.
http://www.businesstimes.com.sg/companies-markets/more-disruption-ahead-for-hospitality-sector