DAILY NEWS

Daily News – 3 November 2021 (Wed)

Singapore Economy

Singapore PMI stays flat at 50.8 in Oct following 2 months of slowdown
Singapore’s overall manufacturing sentiment stayed flat in October, bringing a pause to the slight slowdown the sector had seen in recent months. The purchasing manager’s index (PMI) stood at 50.8 in October, unchanged from the previous month, according to the Singapore Institute of Purchasing and Materials Management (SIPMM).
https://www.businesstimes.com.sg/government-economy/singapore-pmi-stays-flat-at-508-in-oct-following-2-months-of-slowdown

Businesses could face rising costs, cash crunch amid supply-chain snafus: Gan
Small and medium-sized enterprises in Singapore may see cash flow challenges from global supply-chain disruptions, Minister for Trade and Industry Gan Kim Yong told the House in a written reply on Tuesday (Nov 2).
https://www.businesstimes.com.sg/government-economy/businesses-could-face-rising-costs-cash-crunch-amid-supply-chain-snafus-gan

GST on imports of low-value goods will level playing field for local businesses: Indranee
The goods and services tax (GST) will be extended to low-value goods worth S$400 or less imported by air or post, and imported business-to-consumer (B2C) non-digital services from Jan 1, 2023. This will level the playing field for local businesses, Second Minister for Finance Indranee Rajah said on Tuesday (Nov 2)…
https://www.businesstimes.com.sg/government-economy/gst-on-imports-of-low-value-goods-will-level-playing-field-for-local-businesses
https://www.straitstimes.com/singapore/politics/extending-gst-to-low-value-imported-goods-by-air-or-post-will-level-playing-field

Companies’ Brief

CapitaLand Investment books 33% growth in fees related earnings in Q3, establishes 2 new funds
CapitaLand Investment (CLI) booked a 33 per cent growth in fee-related earnings (FRE) for Q3 FY21 to S$94.6 million from S$71.1 million a year ago in its first business update since listing on the bourse in September.
https://www.businesstimes.com.sg/companies-markets/capitaland-investment-books-33-growth-in-fees-related-earnings-in-q3-establishes-2

Ho Bee Land acquires residential site in Melbourne for A$142m
Real estate developer Ho Bee Land will acquire a residential development site in Melbourne, Australia for A$142 million (S$142.3 million), it said in a bourse filing on Wednesday (Nov 3). Its wholly-owned subsidiary HBL VIC has entered into a sale and purchase agreement for the property…
https://www.businesstimes.com.sg/companies-markets/ho-bee-land-acquires-residential-site-in-melbourne-for-a142m

Straits Trading showing plenty of value despite strong rise this year
Shares of Straits Trading have gained 75.1 per cent this year, outperforming the Straits Times Index’s gain of 13.7 per cent. Despite that increase, however, Straits Trading remains undervalued relative to its book value.
https://www.businesstimes.com.sg/companies-markets/straits-trading-showing-plenty-of-value-despite-strong-rise-this-year

Evergrande crisis, China property curbs pose near-term challenges for Singapore developers
As debt-laden property developer Evergrande buckles under the weight of over US$300 billion in liabilities, cracks are showing in China’s property sector with a number of other mainland developers – such as Fantasia Holdings Group and Sinic Holdings Group – defaulting on bond payments recently.
https://www.businesstimes.com.sg/companies-markets/evergrande-crisis-china-property-curbs-pose-near-term-challenges-for-singapore

OUE C-Reit’s amount available for distribution slips 7.5% in Q3 to S$30.2m
OUE Commercial Reit’s (OUE C-Reit) amount available for distribution was S$30.2 million for the third quarter ended Sep 30, down 7.5 per cent year on year, the real estate investment trust (Reit) said in a Singapore Exchange business update on Tuesday after market close.
https://www.businesstimes.com.sg/companies-markets/oue-c-reits-amount-available-for-distribution-slips-75-in-q3-to-s302m

Corporate digest
https://www.businesstimes.com.sg/companies-markets/corporate-digest-1491

Views, Reviews, Forum & Others

Why G20 may represent the future of global affairs
The just-ended G20 summit, which secured a landmark global corporate minimum tax deal, has nonetheless frustrated many, including with its failure to reach a stronger position on climate change to help energise the COP26 summit.
https://www.businesstimes.com.sg/opinion/why-g20-may-represent-the-future-of-global-affairs

The great debate over inflation
Will inflation rip? Or will it pass? That is the question economists and policymakers are debating these days. The stakes are high. The onset of prolonged inflation could short-circuit economic recoveries around the world – in some countries even before they have started.
https://www.straitstimes.com/opinion/the-great-inflation-debate

Tourism 2025: The future of tourism and hospitality for a tiny city-state
The establishment of new Vaccinated Travel Lanes (VTLs) between Singapore and over 10 countries is an important milestone for Singapore. While recovery is expected to be gradual as travellers from the 11 VTL countries make up only less than 20 per cent of total visitor arrivals in 2019, this long-awaited news has brought about some form of hope for the hospitality industry.
https://www.businesstimes.com.sg/opinion/tourism-2025-the-future-of-tourism-and-hospitality-for-a-tiny-city-state

Singapore Business Federation leads 45 firms to China International Import Expo in Shanghai
The Singapore Business Federation (SBF) is leading a delegation of 45 companies from Singapore to the 4th China International Import Expo (CIIE), held from Nov 5 to 10 in Shanghai. The Singapore pavilion will showcase products and services in sectors such as logistics, transportation, finance and healthcare.
https://www.businesstimes.com.sg/government-economy/singapore-business-federation-leads-45-firms-to-china-international-import-expo

Things are looking up on the money side for Singaporeans: OCBC survey
Singapore – After a year of pandemic-induced money struggles, Singaporeans are beginning to see a ray of hope about their financial affairs, says the third instalment of an annual survey by OCBC Bank. Though not quite back at pre-pandemic 2019 levels, Singaporeans are saving more, owing less, and showing more optimism about the future.
https://www.straitstimes.com/business/invest/things-are-looking-up-on-the-money-side-for-singaporeans-ocbc-survey

Issues around performance attribution
As the year comes to a close, we shop around for the best priced staycation. For those who wish to travel, we shop around for the best holiday package or flights. We also compare between alternative gifts for Christmas. But shoppers must be able to compare alternatives in a meaningful manner.
https://www.businesstimes.com.sg/wealth-investing/issues-around-performance-attribution

Taking stock of Bitcoin’s merits and risks as a long-term portfolio asset
The mantra of “lower for longer” often used to describe the trajectory of interest rates certainly does not apply when it comes to describing cryptocurrency prices. Bitcoin briefly touched US$1trillion in market capitalisation in April this year, before losing more than half its value in just the following three months.
https://www.businesstimes.com.sg/wealth-investing/taking-stock-of-bitcoins-merits-and-risks-as-a-long-term-portfolio-asset

Amid China’s regulatory crackdowns, sectors that could benefit from policy tailwinds
The crackdowns on China’s tech and edtech companies have badly impacted investor sentiment, leading to massive sell-offs over the past few months. Amid all these regulatory uncertainties, we have identified three sectors set to benefit from policy tailwinds.
https://www.businesstimes.com.sg/wealth-investing/amid-chinas-regulatory-crackdowns-sectors-that-could-benefit-from-policy-tailwinds

Changes to retirement, re-employment, CPF rules will make for a more inclusive economy and society
Singapore – Should people be allowed to work as long as they want, no matter how old they are? This was one of the central questions raised during the debate on the Retirement and Re-employment (Amendment) Bill and Central Provident Fund (Amendment) Bill, which were passed on Tuesday (Nov 2).
https://www.straitstimes.com/singapore/politics/changes-to-retirement-re-employment-cpf-rules-will-make-for-a-more-inclusive

Update on COVID-19 (Coronavirus Disease 2019) Situation

Singapore reports 3,496 new Covid-19 cases, 9 deaths; weekly infection growth rate 1.09
[Singapore] The weekly infection growth rate is at 1.09, up from 1.05 on Monday, the Ministry of Health (MOH) said on Tuesday (Nov 2). This refers to the ratio of community cases in the past week over the week before.
https://www.businesstimes.com.sg/government-economy/singapore-reports-3496-new-covid-19-cases-9-deaths-weekly-infection-growth-rate
https://www.straitstimes.com/singapore/health/spore-reports-3496-new-covid-19-cases-9-deaths-weekly-infection-growth-rate-109

Singapore nears key metric tied to easing Covid curbs
[Singapore] Singapore on Monday registered the lowest number of Covid-19 cases seen in the community since Oct 18, putting the financial hub within striking distance of a key metric tied to a potential easing of measures.
https://www.businesstimes.com.sg/government-economy/singapore-nears-key-metric-tied-to-easing-covid-curbs

*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