DAILY NEWS

Daily News – 5th April 2019

Singapore Real Estate

HDB resale volume up 26.1% in March
The volume of Housing and Development Board (HDB) resale flats grew by 26.1 per cent in March, marking the highest jump in eight months since August last year. There were 1,657 HDB resale transactions in March, up from the 1,314 units sold in the previous month, according to flash estimates from real estate portal SRX Property on Thursday. However, resale volume in March was 12.7 per cent lower than the 1,897 units transacted in the same month last year.
https://www.businesstimes.com.sg/real-estate/hdb-resale-volume-up-261-in-march
https://www.srx.com.sg/research/53332/hdb-resale-volume-jumps-26-in-march-2019-prices-also-rise-with-srx-spi-for-hdb-resale-at-its-highest-level-since-august-2018

Singapore Economy

Expanded IRs ‘to help fill incoming MBS, RWS hotel rooms’
Brand-new attractions and additional exhibition space at the integrated resorts (IRs) should generate additional demand for the new hotel rooms that will be injected into the market by the two IRs in the coming years, analysts say. Marina Bay Sands (MBS) will add a fourth tower featuring 1,000 rooms – all suites – next to its existing three hotel towers; this will beef up its inventory of 2,561 hotel rooms.
https://www.businesstimes.com.sg/government-economy/expanded-irs-to-help-fill-incoming-mbs-rws-hotel-rooms
https://www.straitstimes.com/singapore/some-casino-visitors-undeterred-by-higher-entry-fee
https://www.straitstimes.com/singapore/gaming-remains-main-revenue-driver-for-irs-amid-expansion
https://www.channelnewsasia.com/news/singapore/integrated-resort-expansion-to-create-renewed-visitor-interest-11412268
https://www.todayonline.com/singapore/s9-billion-investment-integrated-resorts-will-attract-more-non-gaming-visitors-create-jobs

‘Possible’ to defer deadline for Singapore-JB RTS link
Responding to Malaysia’s request for six more months to deliberate on the Rapid Transit System (RTS) project to link Johor Baru to Woodlands, Singapore said on Thursday that it is “possible to defer project deadlines and review project parameters”. This is “provided it is done within the framework of the RTS Link Bilateral Agreement (BA) and subject to (the) mutual consent of both countries”, Singapore’s Ministry of Transport (MOT) said in a statement.
https://www.businesstimes.com.sg/government-economy/possible-to-defer-deadline-for-singapore-jb-rts-link
https://www.straitstimes.com/politics/rts-link-deferral-possible-if-in-line-with-bilateral-agreement-spore
https://www.channelnewsasia.com/news/singapore/malaysia-asked-more-time-decide-on-johor-bahru-rts-link-11412212
https://www.todayonline.com/singapore/msia-can-defer-johor-singapore-rts-link-within-agreed-terms-and-mutual-consent-mot

ITAP 2019 to get boost from Jurong Innovation District
The second edition of Industrial Transformation Asia Pacific (ITAP) this year will be strengthened by the addition of the Jurong Innovation District (JID) as part of a larger strategy to build on connections made at the trade show, Senior Minister of State for Trade and Industry Koh Poh Koon told The Business Times on Wednesday. The event, which will be held in Singapore in October, is the Asian version of Hannover Messe, organised in partnership with Hannover Messe organiser Deutsche Messe.
https://www.businesstimes.com.sg/technology/itap-2019-to-get-boost-from-jurong-innovation-district

Singapore ‘ideal’ for EU firms to enter S-E Asia
For European companies seeking to make inroads into South-east Asia’s advanced manufacturing industry, Singapore serves as an ideal springboard to the region, Senior Minister of State for Trade and Industry Koh Poh Koon said at the Hannover Messe trade show on Wednesday. Not only is Singapore the European Union’s 15th largest trade partner globally and its single largest Asean trading partner, a free trade agreement between the two is also in the works…
https://www.businesstimes.com.sg/technology/singapore-ideal-for-eu-firms-to-enter-s-e-asia
https://www.businesstimes.com.sg/technology/thyssenkrupp-to-set-up-3d-printing-innovation-centre-in-singapore-0
https://www.straitstimes.com/business/spore-ideal-springboard-to-s-e-asia-koh-poh-koon
https://www.straitstimes.com/business/economy/thyssenkrupp-to-set-up-3d-printing-innovation-centre-in-singapore-0

Companies’ Brief

Frasers Property to issue S$400m of 4.98% perpetuals with five-year reset
Frasers Property plans to sell S$400 million of 4.98 per cent subordinated perpetual securities with a five-year reset under its S$5 billion multicurrency programme. The securities will be issued at 100 per cent of the nominal amount by Frasers Property Treasury, a wholly owned subsidiary of the listed real estate developer. The securities may be redeemed at the issuer’s option after five years at 100 per cent of the principal amount, and will offer security holders make-whole protection if they are called before five years.
https://www.businesstimes.com.sg/companies-markets/frasers-property-to-issue-s400m-of-498-perpetuals-with-five-year-reset
https://www.straitstimes.com/business/companies-markets/frasers-property-to-issue-400m-of-498-perpetuals-with-five-year-reset

Frasers Property in talks to sell Frasers Tower
Frasers Property said on Thursday that it “has been in discussions with certain parties who have expressed interest” in its Frasers Tower office property, located at 182 Cecil Street. It said that there is no certainty that any transaction would result from such discussions, according to a bourse filing in response to Bloomberg queries.
https://www.businesstimes.com.sg/companies-markets/frasers-property-in-talks-to-sell-frasers-tower
https://www.straitstimes.com/business/companies-markets/frasers-property-in-talks-to-potentially-sell-frasers-tower

Extended deadline for Lian Beng to sell assets that compete with its unit SLB
Catalist property player SLB Development has obtained regulatory approval for its controlling shareholder Lian Beng Group to be given a one-year extension to dispose of competing business in Australia and Singapore. SLB in a regulatory filing on Thursday announced that unfavourable property market conditions Down Under and in the city-state have resulted in its parent company, Lian Beng, not being able to divest competing business by April this year. The deadline was a year from SLB’s Catalist debut in April 2018.
https://www.businesstimes.com.sg/companies-markets/extended-deadline-for-lian-beng-to-sell-assets-that-compete-with-its-unit-slb

Short-term pain, long-term gain for Genting Singapore: analysts
Analysts agreed that the casino entry levy implemented on Thursday, higher casino tax rates from March 2022, and the S$4.5 billion reinvestment plan for Resorts World Sentosa (RWS) will result in a short-term hit to earnings for Genting Singapore. That said, they are generally positive that in the long term, the levies could curb problem gambling, and the investment to ramp up facilities and attractions at RWS will bear fruit.
https://www.businesstimes.com.sg/companies-markets/short-term-pain-long-term-gain-for-genting-singapore-analysts
https://www.straitstimes.com/business/companies-markets/genting-spore-shares-plunge-on-news-of-hike-in-levies-taxes
https://www.channelnewsasia.com/news/singapore/genting-singapore-resorts-world-sentosa-shares-expansion-invest-11412870
https://www.todayonline.com/singapore/genting-singapore-shares-slump-cash-splash-hike-entry-levies

Colliers hires new South Asia head for workplace solutions business
Real estate services company Colliers International has appointed Ana Ballesteros to lead its workplace solutions business in South Asia with effect from April 1, 2019. Ms Ballesteros will be based in Singapore and report to Hong Kong-based Truddy Cheung, head of workplace solutions, Asia, at Colliers. She replaces Samarth Kasturia, who left for CBRE Group after working at Colliers for two years from January 2017 to January 2019.
https://www.businesstimes.com.sg/real-estate/colliers-hires-new-south-asia-head-for-workplace-solutions-business

Good things worth waiting for, says MBS chief
Ever since Marina Bay Sands (MBS) opened for business in April 2010, its senior executives have consistently made known their desire to invest more in Singapore and to expand the footprint of the integrated resort (IR). In 2016, MBS first began discussions with the government on its proposed expansion plans. At the time, there was still a year to go before the 10-year exclusivity period (dated from when the contracts to develop the IRs were awarded) for Singapore’s two casino operators was to expire.
https://www.businesstimes.com.sg/government-economy/good-things-worth-waiting-for-says-mbs-chief-0

Views, Reviews, Forum & Others

Investment commitment well-timed and necessary
The S$9 billion investment that Singapore’s integrated resorts (IRs) are set to make is both well-timed and necessary if the island is to defend its position as a prime gaming playground, particularly as competition from neighbours intensifies. When Marina Bay Sands (MBS) and Resorts World Sentosa (RWS) opened in 2010, Singapore was a relatively early mover in the region. But since then, the Philippines has emerged as a fast-growing player…
https://www.businesstimes.com.sg/opinion/investment-commitment-well-timed-and-necessary

What’s next for Singapore’s e-commerce landscape
The issue of foreign worker quotas was hotly debated at the recent Budget debate in parliament, casting the spotlight once again on Singapore’s services and retail industry. What’s noteworthy is that the caps on foreign workers will not be limited to F&B and the services sector. The transportation, storage and logistics sector, which is the engine that propels e-commerce, will not be exempted as well.
https://www.businesstimes.com.sg/real-estate/whats-next-for-singapores-e-commerce-landscape

New incentive schemes welcome boosts for CBD; will developers bite?
The two incentive schemes unveiled last week to help rejuvenate strategic areas of Singapore are welcome moves to spur redevelopment of the Central Business District and city centre. Part of the Urban Redevelopment Authority’s Draft Master Plan 2019, one scheme aims at livening up the CBD with a broader mix of uses including residential. A wider diversity of uses – including more residences, hotels and creative lifestyle possibilities…
https://www.businesstimes.com.sg/opinion/new-incentive-schemes-welcome-boosts-for-cbd-will-developers-bite