DAILY NEWS

Daily News – 5th Jun 2018

Singapore Economy

Trade frictions can develop into wider mistrust: PM Lee
Trade frictions between the United States and China can easily deteriorate into wider mistrust, Prime Minister Lee Hsien Loong said in an interview published on Monday. Mr Lee was responding to veteran American journalist Tom Plate, who had asked if the US relationship with China is going to swing back and forth, as in the past, or whether a fundamental cleavage is starting to push both countries apart.
https://www.businesstimes.com.sg/government-economy/trade-frictions-can-develop-into-wider-mistrust-pm-lee
https://www.straitstimes.com/politics/us-china-frictions-can-lead-to-wider-mistrust-pm-lee

Younger Singapore leaders to build on China ties: Heng
Even as Singapore undergoes leadership renewal and transition, its younger leaders will continue to build on and improve ties with China, visiting Finance Minister Heng Swee Keat said in China on Monday. In an address to 200 students and faculty members from Nanjing University, Mr Heng pointed to current leaders like Deputy Prime Minister Teo Chee Hean, who have over the years built a “long-standing and close friendship” between the two countries.
https://www.businesstimes.com.sg/government-economy/younger-singapore-leaders-to-build-on-china-ties-heng
https://www.straitstimes.com/asia/east-asia/4g-leaders-aim-to-build-on-ties-with-china
https://www.channelnewsasia.com/news/singapore/singapore-strengthen-ties-china-4g-leadership-heng-swee-keat-10362908

Green practices gaining ground with companies in Singapore
Phasing out disposable plastics? Check. Installation of LED lighting? Check. Rainwater collection system? Check. Solar panels? Check. Setting up an edible rooftop garden? Yes, check that too. These are just some of the many sustainability initiatives implemented by organisations in Singapore amid an apparent wave of going green.
https://www.businesstimes.com.sg/government-economy/green-practices-gaining-ground-with-companies-in-singapore
https://www.businesstimes.com.sg/government-economy/beyond-branding-sustainable-practices-get-real-for-businesses

Singapore’s PMI eases a notch in May, but still in expansionary mode
Manufacturing activity in Singapore dialled back a notch in May, in line with economist expectations that the sector’s growth pace will gradually ease from last year’s highs, according to the latest purchasing managers’ index (PMI). The barometer of industrial activity recorded a further dip of 0.2 point from the previous month to post a slower expansion of 52.7.
https://www.businesstimes.com.sg/government-economy/singapore%E2%80%99s-pmi-eases-a-notch-in-may-but-still-in-expansionary-mode
https://www.straitstimes.com/business/economy/singapore-manufacturing-eases-but-still-in-expansionary-mode
https://www.straitstimes.com/business/companies-markets/manufacturing-expands-for-21st-straight-month

Singapore Real Estate

Spanish Village put up for collective sale for S$882m
Yet another property development in District 10 has been put up for sale. Owners of the 226-unit freehold property in Farrer Road known as Spanish Village are asking for S$882 million, jumping on the bandwagon of collective sales hopefuls in the prime districts. So far, 25 collective sale sites in districts 9, 10 and 11 have concluded, chalking up S$5.5 billion in total sale proceeds and a median land rate of S$1,664 per square foot per plot ratio (psf ppr), based on The Business Times’ compilation.
https://www.businesstimes.com.sg/real-estate/spanish-village-put-up-for-collective-sale-for-s882m
https://www.straitstimes.com/business/property/spanish-village-up-for-collective-sale

New flavour of the season
https://www.businesstimes.com.sg/sites/default/files/graphics/2018/06/05/BT_20180605_LKCOLLECTIVE5BO_3460924.pdf

112 Affinity at Serangoon units sold over the weekend
Affinity at Serangoon, a development by a consortium led by mainboard-listed Oxley Holdings, sold 112 of the 300 units offered in Phase I over its official launch weekend on June 2-3. They were sold at an average price of S$1,575 per square foot (psf), the developer said on Monday. Affinity is a 99-year leasehold development comprising seven blocks with 1,012 one- to four-bedroom apartments and 40 strata landed houses.
https://www.businesstimes.com.sg/real-estate/112-affinity-at-serangoon-units-sold-over-the-weekend

Companies’ Brief

Wee Hur to acquire Sydney property for A$52m
Mainboard-listed Wee Hur Holdings revealed on Monday evening that Wee Hur PBSA Master Trust, through its wholly owned sub-trust WH Gibbons Trust, has signed a put and call agreement on the proposed acquisition of a property in Sydney for A$52 million (S$53.13 million). The property developer owns a 69 per cent stake in Wee Hur PBSA Master Trust. The property – 13-23 Gibbons Street – is a 32-unit freehold residential block in Redfern with a site area of about 1,365 sq m.
https://www.businesstimes.com.sg/companies-markets/wee-hur-to-acquire-sydney-property-for-a52m

Wyndham pushes for Asia growth with new regional chief
Wyndham Hotels & Resorts is planning to deploy more brands in much of Asia-Pacific in a bid to build up scale in the region, the new president and director of its South-east Asia and Pacific Rim business Ooi Joon Aun told The Business Times in an exclusive interview. His appointment was announced on Monday, shortly after the spin-off of Wyndham Hotels & Resorts, formerly known as Wyndham Hotel Group, from Wyndham Worldwide, was completed.
https://www.businesstimes.com.sg/real-estate/wyndham-pushes-for-asia-growth-with-new-regional-chief

Keppel Land targets to cut carbon emission intensity
Keppel Land, the real estate arm of conglomerate Keppel Corp, has set a target to reduce carbon emission intensity to 40 per cent below 2010 level by 2030. This translates to a cumulative reduction of almost 140,000 tonnes of carbon emissions, which will yield potential savings of more than S$75 million from 2010 to 2030, the company said in its latest sustainability report.
https://www.businesstimes.com.sg/real-estate/keppel-land-targets-to-cut-carbon-emission-intensity
https://www.straitstimes.com/business/companies-markets/kepland-sets-target-for-carbon-emissions

AccorHotels looking at stake in Air France KLM
Accorhotels said on Sunday that it was looking again at possibly buying a stake in Air France KLM, in which the French government has a 14.3 per cent holding. AccorHotels said that over the past years it had held discussions with Air France KLM with a view to developing joint projects, including an acquisition of a minority stake.
https://www.businesstimes.com.sg/transport/accorhotels-looking-at-stake-in-air-france-klm

Perennial ups stake in Xi’an Perennial East to 65.7%
Perennial Real Estate Holdings on Monday evening said its subsidiary – Perennial Xi’an Development 2 – has entered into a sale and purchase agreement with Shanghai Summit Group. The acquisition, completed on June 4, sees the property developer increase its stake in Xi’an Perennial Cheng Tou East Real Estate (Xi’an Perennial East) from 51 per cent to 65.7 per cent.
https://www.businesstimes.com.sg/companies-markets/perennial-ups-stake-in-xi%E2%80%99an-perennial-east-to-657

Barcelo is said to weigh offer for HNA’s stake in NH Hotel
[Hong Kong] Spain’s Grupo Barcelo is considering an offer for HNA Group Co.’s US$780 million stake in NH Hotel Group SA, people familiar with the matter said, setting up a potential challenge to Minor International Pcl’s pursuit of the hospitality operator.
https://www.businesstimes.com.sg/real-estate/barcelo%C2%A0is-said-to-weigh-offer-for%C2%A0hnas-stake-in-nh-hotel

Views, Reviews, Forum & Others

Grappling with issue of ageing HDB flat leases
In January 2016, a home buyer paid nearly $1 million for a 44-year-old HDB flat in Bukit Timah. He was not the only one. Buoyed by speculative demand for Housing Board flats with selective en bloc redevelopment potential, transactions for a number of old units reached or exceeded the million-dollar mark.
https://www.straitstimes.com/opinion/grappling-with-issue-of-ageing-hdb-flat-leases

Social impact of One Belt, One Road significant: Expert
The Belt and Road Initiative (BRI) will bring trillions of dollars in infrastructure investments around the old Silk Road. But the social and environmental impact from what is easily the biggest infrastructure and investment project in Asia to date is significant and will likely take many decades to play out.
https://www.straitstimes.com/singapore/social-impact-of-one-belt-one-road-significant-expert