DAILY NEWS

Daily News – 04th September 2018

Singapore Economy

Growth in Asia-Pac pension fund assets outpaces global rate
Pension funds in the Asia-Pacific are punching above their weight, accounting for a substantial and growing share of the global pensions market, a Global 300 research study by Willis Towers Watson’s Thinking Ahead Institute has found. Assets of seven Asian pension funds surged by 25.6 per cent in 2017 to an aggregate sum of US$3.3 trillion, and accounted for 44.3 per cent of the world’s top 20 pension funds’ assets.
https://www.businesstimes.com.sg/government-economy/growth-in-asia-pac-pension-fund-assets-outpaces-global-rate

SMEs can lift Asean GDP by US$1.1t with tech adoption: Bain
Fewer than one in five small businesses in Asean are reaping the benefits of digital technology, despite keen interest, a study has found. But bringing small and medium-sized enterprises (SMEs) on board could lift regional gross domestic product (GDP) by as much as US$1.13 trillion by 2025, a Bain & Co team concluded, estimating that the GDP could hit up to US$5.1 trillion by then. The digital economy now makes up about 7 per cent of Asean GDP, or US$200 billion – less than China’s 16 per cent, Europe’s 27 per cent and the United States’ 35 per cent, they noted.
https://www.businesstimes.com.sg/top-stories/smes-can-lift-asean-gdp-by-us11t-with-tech-adoption-bain
https://www.straitstimes.com/business/companies-markets/asean-gdp-could-soar-by-us1-trillion-as-smes-go-digital

No compensation for HSR deferment: KL minister
Malaysian Economic Affairs Minister Mohamed Azmin Ali said on Monday that an agreement has been reached to postpone the Kuala Lumpur-Singapore High-Speed Rail (HSR) project without compensation, and that the project would resume once the deferral ends. However, a Singapore Ministry of Transport spokesman said that discussions are still ongoing. Responding to media queries on Mr Azmin’s remarks, she said: “Malaysia and Singapore are currently in discussions on Malaysia’s request to defer the Kuala Lumpur-Singapore High- Speed Rail project.
https://www.businesstimes.com.sg/government-economy/no-compensation-for-hsr-deferment-kl-minister
https://www.straitstimes.com/asia/se-asia/spore-still-in-talks-with-kl-on-deferring-high-speed-rail-project

Singapore PMI up for 24th month in a row
Manufacturing activity in Singapore continued to grow last month, marking the sector’s expansion for the 24th month in a row. This is reflected in the Purchasing Managers’ Index (PMI), which rose 0.3 point to 52.6. A reading above 50 indicates manufacturing is generally expanding. The boost in the PMI, based on a survey of purchasing managers in more than 150 manufacturing companies, came mainly from increased new orders and new exports.
https://www.straitstimes.com/business/singapore-pmi-up-for-24th-month-in-a-row
https://www.businesstimes.com.sg/infographics/singapore-manufacturing-picks-up-in-august

Singapore Real Estate

Punggol’s waterfront flats a big hit in BTO offer
New flats in a recently launched waterfront district in Punggol were the top draw at the Housing Board’s latest sales exercise, which ended at midnight. There were close to five applicants vying for each of the 1,221 three-room and larger flats in Punggol Point, a new district in Punggol that boasts views of the Johor Strait. In contrast, applicants are almost guaranteed a flat in Yishun, which saw just 1,012 families applying for 1,254 three-room and larger flats.
https://www.straitstimes.com/singapore/punggols-waterfront-flats-a-big-hit-in-bto-offer
https://www.straitstimes.com/singapore/demand-for-new-punggol-bto-flats-far-exceeds-that-for-yishun

KOP tweaks redevelopment plans for Villa D’Este site after cooling measures
In the wake of the recent property cooling measures, real estate developer KOP has rejigged plans for the redevelopment of the Villa D’Este site to introduce smaller units. In May this year, KOP announced it had bagged the freehold property in Dalvey Road in District 10 through a collective sale for S$93 million. The price works out to S$1,898 per square foot based on the existing gross floor area of about 49,072 sq ft, The Business Times reported previously.
https://www.businesstimes.com.sg/real-estate/kop-tweaks-redevelopment-plans-for-villa-deste-site-after-cooling-measures

Qingjian to build more than 1,200 homes on Shunfu Ville site
Qingjian Realty has unveiled its plan to build more than 1,200 apartment units in Shunfu Road, on the site of the former Shunfu Ville estate. JadeScape, as the new development in Bishan is to be called, will be kitted out with fully-integrated smart home technologies and an intelligent estate monitoring system. The developer hopes to draw buyers at an average price of S$1,700 per square foot.
https://www.businesstimes.com.sg/real-estate/qingjian-to-build-more-than-1200-homes-on-shunfu-ville-site
https://www.straitstimes.com/business/property/qingjian-unveils-shunfu-road-project

Companies’ Brief

Sabana Reit issues termination notice to tenant over S$2.14m in rental defaults
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) has issued a notice of termination on Aug 31 to Adviva Distribution, the tenant at 10 Changi South Street 2, due to the tenant’s “failure to pay rent and other sums payable” under the lease agreement. In a filing late last Friday, Sabana Reit said that the tenant owes S$2.14 million in rental arrears.
https://www.businesstimes.com.sg/companies-markets/sabana-reit-issues-termination-notice-to-tenant-over-s214m-in-rental-defaults-0
https://www.straitstimes.com/business/property/sabana-reit-issues-termination-notice-to-tenant

ESR-Reit, VIT request lifting of trading halt after merger nod
ESR-Reit requested a lifting of its trading halt yesterday morning before trading hours began, days after unit holders approved a merger with Viva Industrial Trust (VIT) that brings the real estate investment trust (Reit) closer towards becoming Singapore’s fourth-largest industrial property trust. Viva Industrial Trust also requested a lift of its trading halt yesterday morning.
https://www.straitstimes.com/business/property/esr-reit-vit-request-lifting-of-trading-halt-after-merger-nod

Tong Eng Group’s Daniel Teo made Sias’ honorary chairman
The Securities Investors Association (Singapore), or Sias, has named property tycoon Daniel Teo as its honorary chairman. The three-year term began on Aug 1. Mr Teo is a director of the Tong Eng Group as well as chairman and managing director of the Hong How Group, both of which are family businesses.
https://www.businesstimes.com.sg/government-economy/tong-eng-groups-daniel-teo-made-sias-honorary-chairman
https://www.straitstimes.com/business/companies-markets/daniel-teo-is-new-honorary-chairman-of-sias

Boustead unit bags contract to build integrated R&D and office building in one-north
Boustead Projects has been awarded a contract under its wholly owned subsidiary Boustead Projects E&C Pte Ltd to build an integrated R&D (research and development) and office building in one-north. The project is expected to be completed by the first quarter of 2020. It is Boustead’s fourth business park project within one-north.
https://www.businesstimes.com.sg/companies-markets/boustead-unit-bags-contract-to-build-integrated-rd-and-office-building-in-one
https://www.straitstimes.com/business/companies-markets/boustead-unit-snags-contract-to-build-integrated-rd-and-office-building

ARA buys all of CWT’s units in Cache Logistics Trust, raising its stake to 9.2%
ARA Asset Management, the manager of Cache Logistics Trust, has raised its stake in the warehouse owner to 9.21 per cent through a married deal with Cache’s sponsor CWT. CWT, which was acquired by the Chinese HNA Group last year, sold all its 43.66 million units in Cache to ARA for S$0.74 per unit on Aug 30, according to an exchange filing on Monday. The sale lifts ARA’s stake in Cache from 5.14 per cent to 9.21 per cent.
https://www.businesstimes.com.sg/companies-markets/ara-buys-all-of-cwts-units-in-cache-logistics-trust-raising-its-stake-to-92

Space Matrix to enter China market by buying design firm
Singapore-based Space Matrix is entering China by buying a local interior design and construction company called Muraya, as the workplace design and consultancy guns for growth on the back of the Chinese office market. The purchase will give Space Matrix a headcount of over 400 across its offices in eight markets: Singapore, India, Hong Kong, China, the Philippines, Australia, Thailand and the US.
https://www.businesstimes.com.sg/real-estate/space-matrix-to-enter-china-market-by-buying-design-firm