DAILY NEWS

Daily News – 4 Aug 2020 (Tue)

Singapore Economy

July PMI turns positive, but employers’ hiring sentiment still weak
Singapore’s manufacturing sentiment has inched into positive territory in July for the first time in six months, but economists caution that this may not translate into improved hiring sentiment in the second half of 2020.
https://www.businesstimes.com.sg/government-economy/july-pmi-turns-positive-but-employers-hiring-sentiment-still-weak
https://www.straitstimes.com/business/economy/spore-factory-activity-expands-in-july-after-5-months-of-contraction

Singapore’s visitor arrivals in June sink to 2,200 from 1.6m a year ago
Singapore’s visitor arrivals in June plummeted to 2,200 from 1.6 million a year ago, the Singapore Tourism Board (STB) has said. Visitors numbered 880 in May and 750 in April, compared to 1.5 million in May 2019, and 1.6 million in April 2019.
https://www.businesstimes.com.sg/government-economy/singapores-visitor-arrivals-in-june-sink-to-2200-from-16m-a-year-ago

Companies’ Brief

CapitaLand Reits top corporate governance ranking
CapitaLand Commercial Trust, CapitaLand Mall Trust and Ascott Residence Trust have emerged at the top of the latest Singapore Governance and Transparency Index (SGTI) ranking of real estate investment trusts (Reits) and trusts.
https://www.businesstimes.com.sg/companies-markets/capitaland-reits-top-corporate-governance-ranking

CapitaLand pares stake in Guangzhou development unit for S$78.6m
CapitaLand on Monday said that it and other shareholders have, through a series of transactions, divested an aggregate 40 per cent equity stake in Guangzhou Kai Ke Xing Mao Real Estate Development (GKK) to an unrelated purchaser for RMB395.7 million (S$78.6 million).
https://www.businesstimes.com.sg/companies-markets/capitaland-pares-stake-in-guangzhou-development-unit-for-s786m
https://www.businesstimes.com.sg/companies-markets/corporate-digest-1187

Chip Eng Seng reverses to losses in H1 2020 on Covid-19 impact
Property development and construction firm Chip Eng Seng on Monday posted a net loss of S$24.4 million for its first half ended June 30, reversing from a net profit of S$15.2 million a year ago. This came on the back of a 42.5 per cent decline in revenue to S$290 million, as the group’s operations were “adversely affected” by measures taken by the government to tackle the spread of the coronavirus.
https://www.businesstimes.com.sg/companies-markets/chip-eng-seng-reverses-to-losses-in-h1-2020-on-covid-19-impact

Frasers L&C Trust to sell stake in facility, buy two properties from sponsor; Q3 revenue doubles
Frasers Logistics & Commercial Trust (FLCT) is looking to acquire two properties in Australia and the UK from its sponsor Frasers Property as well as sell its remaining half stake in a cold storage facility in Australia, said the trust’s manager, which has also released its latest business update indicating that the coronavirus pandemic has not had a material impact on FLCT’s portfolio.
https://www.businesstimes.com.sg/companies-markets/frasers-lc-trust-to-sell-stake-in-facility-buy-two-properties-from-sponsor-q3
https://www.straitstimes.com/business/companies-markets/frasers-logistics-commercial-trust-nearly-doubles-revenue-in-q3-amid

Temasek’s offer for Keppel may stay but at a lower price: analysts
Some analysts are keeping faith with Temasek Holdings going through with its partial offer for Keppel Corporation given the need for consolidation in the sector. But the offer price may be lowered, leading them to cut their target prices even though they’re keeping their “buy” calls.
https://www.businesstimes.com.sg/companies-markets/temaseks-offer-for-keppel-may-stay-but-at-a-lower-price-analysts
https://www.straitstimes.com/business/companies-markets/keppel-shares-fall-41-on-uncertainty-over-temasek-offer

Keppel shareholders should ‘hope for the best, prepare for the worst’ on Temasek’s offer
“Deal or no deal?” has been trending among investors since Keppel Corp’s record quarterly loss cast a cloud over Temasek Holdings’ bid for the conglomerate. Keppel posted a staggering S$697 million loss for the three months to June from a net profit of S$153 million a year ago, led by huge impairments of S$919 million on the back of a gloomy offshore and marine backdrop.
https://www.businesstimes.com.sg/companies-markets/keppel-shareholders-should-hope-for-the-best-prepare-for-the-worst-on-temaseks

Remote working trend a blip in office life, says Manulife US Reit
Will US office workers return to their cubicles? Manulife US Real Estate Investment Trust (Manulife US Reit) seems to think they will, citing a survey done during the Covid-19 pandemic that showed muted enthusiasm from American office workers about working from home.
https://www.businesstimes.com.sg/companies-markets/remote-working-trend-a-blip-in-office-life-says-manulife-us-reit

Suntec Reit announces completion of premium Melbourne office development
Suntec Reit announced on Monday that its office development, Olderfleet, at 477 Collins Street in Melbourne, Australia, received practical completion on July 31, 2020. Suntec Reit co-owns the development with Australian property firm Mirvac.
https://www.businesstimes.com.sg/companies-markets/suntec-reit-announces-completion-of-premium-melbourne-office-development
https://www.businesstimes.com.sg/companies-markets/corporate-digest-1187

TA Corp expects ‘significant net loss’ for H1 2020
Property and construction firm TA Corporation on Monday flagged that it expects to report a “significant net loss” for H1 2020 and consequently, expect a loss for the full year ending Dec 31, 2020. This announcement followed a preliminary assessment of its unaudited results for the six months ended June 30.
https://www.businesstimes.com.sg/companies-markets/ta-corp-expects-significant-net-loss-for-h1-2020

Views, Reviews, Forum & Others

Keeping hub status will be a challenge
Amid the sweeping changes to the external environment brought on by the coronavirus pandemic, Singapore has been facing a significant challenge to breathe life into and maintain the status of two key hubs which the broader economy depends on: Changi Airport and the sea port.
https://www.straitstimes.com/opinion/st-editorial/keeping-hub-status-will-be-a-challenge

Singapore sends strong signal on tax avoidance
The stakes will soon be raised for taxpayers who stray close to the edge when planning their taxes. On July 20, 2020, Singapore’s Ministry of Finance (MOF) announced that it intends to amend the Income Tax Act and Stamp Duties Act to introduce a 50 per cent surcharge on tax avoidance arrangements.
https://www.businesstimes.com.sg/opinion/singapore-sends-strong-signal-on-tax-avoidance

ESG gains traction in China as foreign investor base expands
Awareness of environmental, social and governance (ESG) issues has increased in China, and government initiatives and increased foreign investor participation in China’s markets are largely driving it.
https://www.businesstimes.com.sg/opinion/esg-gains-traction-in-china-as-foreign-investor-base-expands

National Wages Council to reconvene this year
The National Wages Council (NWC) will reconvene this year as the Covid-19 pandemic takes a toll on the labour market. Manpower Minister Josephine Teo announced this in a Facebook post on Monday after a recent meeting with National Trades Union Congress (NTUC) secretary-general Ng Chee Meng and Singapore National Employers Federation (SNEF) president Robert Yap to share information on ground concerns.
https://www.businesstimes.com.sg/government-economy/national-wages-council-to-reconvene-this-year
https://www.straitstimes.com/singapore/manpower/nwc-to-convene-again-as-pandemic-takes-toll-on-jobs
https://www.straitstimes.com/singapore/manpower/observers-call-for-more-aggressive-wage-support
https://www.straitstimes.com/singapore/manpower/difficult-days-ahead-but-ntuc-will-support-workers-ng-chee-meng

Update on COVID-19 (Coronavirus Disease 2019) Situation

226 new coronavirus cases in Singapore, including prison inmate
There were 226 new coronavirus cases yesterday, including one community case: An inmate who was admitted to Changi Prison Complex on July 30. The 26-year-old Sri Lankan man, who is on a short-term visit pass, was tested as part of the Singapore Prison Service’s proactive screening of newly admitted inmates.
https://www.straitstimes.com/singapore/226-new-virus-cases-in-spore-including-prison-inmate

Travellers to Singapore must wear monitoring device if serving SHN at home
All incoming travellers serving their stay-home notice (SHN) outside of dedicated facilities must soon wear an electronic monitoring device, Singapore authorities announced on Monday. From Aug 10, 11.59pm, these travellers – including returning residents, long-term pass holders, work pass holders and their dependents..
https://www.businesstimes.com.sg/government-economy/travellers-to-singapore-must-wear-monitoring-device-if-serving-shn-at-home-0
https://www.straitstimes.com/singapore/travellers-entering-spore-to-wear-shn-monitoring-device
https://www.straitstimes.com/singapore/devices-do-not-store-personal-data-or-record-video-audio
https://www.straitstimes.com/asia/se-asia/quarantine-monitoring-devices-also-being-used-by-others-worldwide

*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