DAILY NEWS

Daily News – 4 Nov 2020 (Wed)

Singapore Real Estate

More option-to-purchase data from developers will benefit homebuyers, shareholders
Just over a month ago, the authorities clamped down on the practice of private housing developers continually re-issuing options to purchase (OTPs) upon expiry. This should reduce distortions in the volume of developers’ sales – at least with regard to new options issued with effect from Sept 28, 2020.
https://www.businesstimes.com.sg/companies-markets/more-option-to-purchase-data-from-developers-will-benefit-homebuyers-shareholders

Built-environment measures aim to spread out Covid-19 burden
New measures, including a four-month extension of time for construction contracts, aim to ensure that no single part of the built-environment sector “has to bear a disproportionate share of the burden brought about by the pandemic”, said Minister for National Development Desmond Lee in Parliament on Tuesday.
https://www.businesstimes.com.sg/government-economy/built-environment-measures-aim-to-spread-out-covid-19-burden
https://www.straitstimes.com/singapore/politics/contractors-to-get-universal-4-month-extension-to-complete-projects

Design tender awarded for new Bidadari funeral complex
An eco-friendly burning chamber for paper offerings that will reduce the unpleasant effects of open-air burning and wake halls designed to offer families privacy from public view will be among key features of a new funeral parlour complex in Bidadari estate.
https://www.straitstimes.com/business/property/design-tender-awarded-for-new-bidadari-funeral-complex

Singapore Economy

Manufacturers to pick up speed in year-end
Singapore manufacturers are heading into the tail months of 2020 with a rosier outlook, after a rocky story over the past year and a half. The rebound may not be a flash in the pan either, as factory growth could last until at least the new year.
https://www.businesstimes.com.sg/government-economy/manufacturers-to-pick-up-speed-in-year-end
https://www.straitstimes.com/business/economy/spore-factory-activity-expands-for-fourth-straight-month

Framework to exit contracts will help SMEs reset their business: Edwin Tong
On their own, small and micro enterprises may not have the leverage to renegotiate contracts that have become too onerous due to Covid-19. But as Singapore moves towards recovery, businesses should be enabled to reallocate resources, “rather than being stuck in a prolonged, painful, unproductive struggle, when circumstances and business assumptions have clearly changed”, said Second Minister for Law Edwin Tong in Parliament on Tuesday.
https://www.businesstimes.com.sg/government-economy/framework-to-exit-contracts-will-help-smes-reset-their-business-edwin-tong
https://www.straitstimes.com/singapore/politics/distressed-small-firms-get-nod-to-end-contracts-early-0
https://www.straitstimes.com/singapore/politics/early-end-to-contracts-will-help-struggling-small-firms-move-on
https://www.straitstimes.com/singapore/politics/new-rules-ensure-no-undue-burden-on-landlords
https://www.straitstimes.com/singapore/politics/simplified-lower-cost-insolvency-processes-for-firms

Companies’ Brief

CapitaLand expects materially adverse impact for FY2020 financial performance
CapitaLand expects financial performance for FY2020 to be materially adversely impacted, despite seeing “encouraging signs of recovery” in operating metrics for Q3, the group said on Tuesday evening. In its business update for the third quarter ended Sept 30, the property giant said: “Following significantly reduced profitability in H1 2020 and arising from a subdued operating environment…https://www.businesstimes.com.sg/companies-markets/capitaland-expects-materially-adverse-impact-for-fy2020-financial-performance
https://www.straitstimes.com/business/companies-markets/capitaland-flags-materially-adverse-hit-on-full-year-results-from-covid

FCT H2 DPU drops 26.1% as Covid-19 rental relief hits earnings
Frasers Centrepoint Trust (FCT)’s distribution per unit (DPU) fell 26.1 per cent to 4.372 Singapore cents for the half year ended Sept 30, from 5.913 cents a year ago.
https://www.businesstimes.com.sg/companies-markets/fct-h2-dpu-drops-261-as-covid-19-rental-relief-hits-earnings

Lendlease Reit says Covid-19 may cut rents at 313@somerset
The manager of Lendlease Global Commercial Reit (LReit) on Tuesday noted that the subdued retail sector and leasing demand may potentially depress 313@somerset’s rents during lease renewals and when entering into new leases.
https://www.businesstimes.com.sg/real-estate/lendlease-reit-says-covid-19-may-cut-rents-at-313somerset
https://www.straitstimes.com/business/property/313somerset-may-take-hit-on-rents-during-lease-renewals-says-landlord

Views, Reviews, Forum & Others

Economic Affairs: Robinsons and the future of retail
Watching the islandwide dismay and bewilderment over news that the iconic Robinsons will close its remaining department stores, marking a watershed moment for Singapore retail, one is reminded of a telling comment that appears in The Sun Also Rises, Ernest Hemingway’s first major novel.
https://www.straitstimes.com/opinion/robinsons-and-the-future-of-retail-0

Seeking additional compensation? Be transparent about it
As the global Covid-19 pandemic rages on and amid talks of an impending devastating second wave in Europe, the fortunes of trade-dependent Singapore continue to be weighed down. Firms in Singapore may need to further reduce labour costs to save jobs and survive the pandemic.
https://www.businesstimes.com.sg/wealth-investing/seeking-additional-compensation-be-transparent-about-it

STB launches 50 bundled promotions to draw local tourists
Local tourism is getting a boost from bundled promotions by hotels, attractions, restaurants and shops, which are being offered under the SingapoRediscovers campaign from yesterday. The Singapore Tourism Board (STB) is launching around 50 of these bundled promotions, dubbed “Singapolidays”, which can be found on the SingapoRediscovers website or the VisitSingapore mobile app.
https://www.straitstimes.com/singapore/stb-launches-50-bundled-promotions-to-draw-local-tourists

Biden victory seen as positive for Asian equities: analysts
A victory by Democratic candidate Joe Biden over President Donald Trump in the US election will be seen as positive for Asia equities, said DBS Group Research on Tuesday.
https://www.businesstimes.com.sg/companies-markets/biden-victory-seen-as-positive-for-asian-equities-analysts

Singapore Budget 2020

President assents to third supplementary Bill for Covid-19 support
President Halimah Yacob has formally assented to the third Supplementary Supply and Budget Adjustments Bill that provides for an extra $8 billion in Covid-19 support, said Speaker Tan Chuan-Jin when Parliament sat yesterday.
https://www.straitstimes.com/singapore/president-assents-to-third-supplementary-bill-for-covid-19-support

Employers don’t have to pay income tax on JSS wage subsidies
Employers who have received wage subsidies under the Jobs Support Scheme (JSS) will not have to pay income tax on the subsidies, as part of new rules passed in Parliament. Those who have received government payouts under the Self-Employed Person Income Relief Scheme (Sirs) or Covid-19 Support Grant, among other schemes, also do not have to pay income tax on these payouts, after changes were made to the Income Tax Act.
https://www.straitstimes.com/singapore/politics/employers-dont-have-to-pay-income-tax-on-jss-wage-subsidies

Update on COVID-19 (Coronavirus Disease 2019) Situation

9 new Covid-19 cases in Singapore, with 7 of them imported
There were nine new coronavirus cases confirmed yesterday, taking Singapore’s total to 58,029. They included two cases from workers’ dormitories, said the Ministry of Health (MOH), while there were no new community cases announced.
https://www.straitstimes.com/singapore/9-new-covid-19-cases-in-singapore-with-7-of-them-imported
https://www.channelnewsasia.com/news/singapore/covid-19-moh-singapore-new-cases-community-imported-dormitory-13449310

Temasek pitches in for Covid-19 vaccine
Temasek Foundation has invested in the effort to develop a Covid-19 vaccine, said Temasek International executive director and chief executive Dilhan Pillay Sandrasegara yesterday. He said this in response to a question on Temasek’s role in helping to procure and distribute the vaccine, during a discussion at the Temasek Trust Conversation.
https://www.straitstimes.com/singapore/temasek-pitches-in-for-covid-19-vaccine
*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