DAILY NEWS

Daily News – 6 July 2021 (Tue)

Singapore Real Estate

CBD Grade A offices’ net demand turns positive, but vacancies rise again
The full-year net demand for Grade A office space in Singapore’s central business district (CBD) for 2021 is likely to be up to six times that of 2020, Cushman & Wakefield forecast. This comes as net demand in the first half of this year turned positive, at 68,000 square feet (sq ft), going by data from the real estate consultancy.
https://www.businesstimes.com.sg/real-estate/cbd-grade-a-offices-net-demand-turns-positive-but-vacancies-rise-again

Metropolitan YMCA Residences at Stevens Road up for sale with S$57m guide price
Metropolitan YMCA Residences at 58 Stevens Road has been put up for sale via tender with a guide price of S$57 million, announced sole marketing agent JLL on Monday. Spanning 21,480 square feet (sq ft), the site is zoned residential with a gross plot ratio of 1.4 and an allowable height of up to five storeys.
https://www.businesstimes.com.sg/real-estate/metropolitan-ymca-residences-at-stevens-road-up-for-sale-with-s57m-guide-price

Future of student hostel market in Singapore has no textbook answer
When marketing agents tout shop-houses or mixed-use buildings, a few have advertised that these private properties could convert the approved use to student hostels. But whether that bait works is debatable. The investor demand for such student hostels in Singapore, which typically house students not yet in university, may not be as robust as that in Western markets yet.
https://www.businesstimes.com.sg/real-estate/future-of-student-hostel-market-in-singapore-has-no-textbook-answer

Singapore Economy

GDP likely to grow 4-6% despite global uncertainties
The global economic outlook continues to be highly uncertain and will weigh on a small and open economy such as Singapore. But the Republic can continue to expect gross domestic product (GDP) growth of 4 per cent to 6 per cent this year, barring unforeseen circumstances, said Finance Minister Lawrence Wong yesterday.
https://www.straitstimes.com/singapore/politics/gdp-likely-to-grow-4-6-despite-global-uncertainties

Retail sales up 79.7% in May from ‘circuit breaker’ low base
Singapore’s retail sales rose 79.7 per cent year on year in May to S$3.3 billion, rebounding from the low base during the 2020 “circuit breaker”, Singapore Department of Statistics (SingStat) data on Monday showed.
https://www.businesstimes.com.sg/government-economy/retail-sales-up-797-in-may-from-circuit-breaker-low-base
https://www.straitstimes.com/business/economy/retail-sales-up-by-797-in-may-due-to-low-base

Singapore will adjust corporate tax system in due time
Singapore will adjust its corporate tax system when a global consensus is reached on such matters; but, it will do so in consultation with businesses here, while protecting its sovereign rights on taxes and keeping the compliance burden on businesses down.
https://www.businesstimes.com.sg/government-economy/singapore-will-adjust-corporate-tax-system-in-due-time
https://www.straitstimes.com/singapore/politics/global-tax-deal-will-make-it-harder-for-spore-to-draw-investments-wong

SME bridging loans extended till March 2022
The government is extending its loan assistance programmes for small- and medium-sized enterprises (SMEs) for another six months, until March 31, 2022, Finance Minister Lawrence Wong said on Monday. The Temporary Bridging Loan Programme and the Enhanced Enterprise Financing Scheme – Trade Loan will be extended beyond Oct 1 this year.
https://www.businesstimes.com.sg/government-economy/sme-bridging-loans-extended-till-march-2022
https://www.straitstimes.com/singapore/credit-schemes-to-help-smes-extended-to-march-31

Payment performance of local firms falls slightly in Q2: SCCB
Payment performance of local firms has fallen slightly after three consecutive quarters of improvement, the Singapore Commercial Credit Bureau (SCCB) said on Monday. Occurrences of prompt payments fell by 1.7 percentage points to 40.8 per cent in the second quarter, down from 42.5 per cent in the previous quarter, but rose 0.7 percentage point from 40.1 per cent in the same period last year.
https://www.businesstimes.com.sg/government-economy/payment-performance-of-local-firms-falls-slightly-in-q2-sccb
https://www.straitstimes.com/business/economy/payment-performance-of-local-firms-falls-slightly-in-q2

Companies’ Brief

Offer for Lian Beng turns unconditional
The offer for Lian Beng has turned unconditional as the offeror Ong Sek Chong & Sons has secured over 50 per cent of the total number of issued shares, said the offeror on Monday. In a statement after garnering 50.81 per cent of the total stakes as at 6pm on July 5, the offeror announced the acquisition is now unconditional.
https://www.businesstimes.com.sg/real-estate/offer-for-lian-beng-turns-unconditional

Retired executive chairman of PwC Singapore Yeoh Oon Jin to join SIA board
The board of directors of Singapore Airlines (SIA) will get a new member on Aug 1, when former executive chairman of PwC Singapore Yeoh Oon Jin joins its ranks. The flag carrier stated in its regulatory filing on Monday that the 60-year-old will get on board as an independent non-executive director, and will also be a member of its audit committee.
https://www.businesstimes.com.sg/leadership-management/retired-executive-chairman-of-pwc-singapore-yeoh-oon-jin-to-join-sia-board

Sea Ltd expected to lease majority of office space in Rochester Commons
Sea Limited – the parent company of e-commerce player Shopee, games developer Garena and digital financial services provider SeaMoney – is expanding its physical footprint in Singapore, in tandem with its business growth.
https://www.businesstimes.com.sg/real-estate/sea-ltd-expected-to-lease-majority-of-office-space-in-rochester-commons

Small-cap S-Reits to benefit from global real estate index inclusion: Citi
Lendlease Global Commercial Reit (Lendlease Reit) and Ascendas India Trust (a-iTrust) have been named Citi Research’s top small-cap Singapore real estate investment trust (S-Reit) picks following FTSE Russell’s latest ground rule update on the FTSE EPRA Nareit Global Real Estate Index Series.
https://www.businesstimes.com.sg/real-estate/small-cap-s-reits-to-benefit-from-global-real-estate-index-inclusion-citi

Interest in S-Reits with China retail exposure set for shakeup
Retail spending in China is rebounding, yet investors have been giving a mixed verdict on the three China pure play retail real estate investment trusts (Reits) listed here. The competitive landscape is meanwhile evolving quickly for these S-Reit players, so investor interest may see some further shake-up.
https://www.businesstimes.com.sg/real-estate/interest-in-s-reits-with-china-retail-exposure-set-for-shakeup

Dasin Retail Trust terminates sale and purchase agreement with two ARA units
DASIN Retail Trust’s trustee-manager announced on Monday that its chairman Zhang Zhencheng, as well as Aqua Wealth Holdings, has terminated a proposed sale and purchase agreement with two subsidiaries of ARA Asset Management made in April this year.
https://www.businesstimes.com.sg/real-estate/dasin-retail-trust-terminates-sale-and-purchase-agreement-with-two-ara-units

Views, Reviews, Forum & Others

Squawking about persistently higher inflation?
The eye-catching headlines on inflation, broadly and narrowly referenced, have been a source of anxiety, confusion and speculation of late. Typically, when economists and policy-makers discuss inflation, the emphasis is on a general rise in the overall price level of consumer goods and services.
https://www.businesstimes.com.sg/opinion/squawking-about-persistently-higher-inflation

Better crisis response needed for future shocks
If a meteor hits Earth, a major natural disaster strikes, or any other shock of previously unanticipated dimensions occurs, how should economic policy-makers respond? There are two plausible alternatives: focus on helping the financial sector, along the lines of what was done in 2008-09, or go as big as possible in helping everyone who needs help, as was done in 2020-21.
https://www.businesstimes.com.sg/opinion/better-crisis-response-needed-for-future-shocks

Asset allocation: mixing and matching investments to meet your goals
If you do not have much money to invest, it may seem like a good idea to put all you have in a single stock or sector that you have thoroughly researched. You may even have read of investors who went all-in on speculative counters with “diamond hands”, and then saw their stocks rocket “to the moon”.
https://www.businesstimes.com.sg/hub/invest-grow/asset-allocation-mixing-and-matching-investments-to-meet-your-goals

Singapore Budget 2021

S$1.2b in extra Covid-19 support partly funded by reallocation under SINGA
Additional Covid-19 support measures for Singapore’s “Heightened Alert” period are expected to cost S$1.2 billion. This will be financed by a reallocation of monies previously budgeted for, Finance Minister Lawrence Wong said in Parliament on Monday as he introduced a Supplementary Supply Bill for this.
https://www.businesstimes.com.sg/government-economy/s12b-in-extra-covid-19-support-partly-funded-by-reallocation-under-singa
https://www.straitstimes.com/singapore/politics/first-loans-in-40-years-to-fund-infrastructure
https://www.straitstimes.com/singapore/politics/extra-aid-for-firms-workers-hit-by-covid-19-curbs-to-cost-12b
https://www.straitstimes.com/singapore/politics/12b-for-additional-support-measures-how-singapore-firms-and-workers-will-benefit

Overall fiscal deficit $11b as estimated; no further draw on past reserves
Singapore’s overall fiscal deficit for this financial year is $11 billion, the same as earlier estimates, and no further draw on past reserves is needed, said the Ministry of Finance yesterday. It gave this interim update on the financial year 2021 in conjunction with Finance Minister Lawrence Wong’s ministerial statement in Parliament, where he said that the support package to help companies and workers affected by the period of heightened alert is expected to cost $1.2 billion.
https://www.straitstimes.com/singapore/politics/overall-fiscal-deficit-11b-as-estimated-no-further-draw-on-past-reserves
https://www.businesstimes.com.sg/infographics/revised-estimates-same-final-position

Update on COVID-19 (Coronavirus Disease 2019) Situation

1 new cluster; more cases linked to CGH, Henderson clusters
A new cluster was declared yesterday after one new Covid-19 case was linked to a 36-year-old Malaysian man who works as a driver at Omni Aquatic Supplies. The Malaysian man had fallen sick on June 20, and his polymerase chain reaction (PCR) test came back positive on June 22.
https://www.straitstimes.com/singapore/health/1-new-cluster-more-cases-linked-to-cgh-henderson-clusters
https://www.businesstimes.com.sg/government-economy/new-cluster-linked-to-malaysian-man-more-cases-added-to-cgh-henderson-crescent

Groups of 5 diners may be allowed from next week: Wong
Larger groups of five people can be expected to be allowed to dine in together from next Monday, as Singapore eases measures and opens up further from a recent outbreak in community cases, Finance Minister Lawrence Wong told Parliament yesterday.
https://www.straitstimes.com/singapore/politics/groups-of-5-diners-may-be-allowed-from-next-week-wong

Teen who lifted weights 6 days after jab suffers cardiac arrest
A 16-year-old youth collapsed following a weightlifting session six days after his first dose of the Pfizer-BioNTech/Comirnaty vaccine. In a statement yesterday, the Ministry of Health (MOH) said that the teenager is currently in critical condition in the intensive care unit at the National University Hospital (NUH).
https://www.straitstimes.com/singapore/health/teen-who-lifted-weights-6-days-after-jab-suffers-cardiac-arrest

HSA: Avoid strenuous activity after 1st or 2nd dose of jab
People should avoid strenuous physical activity for a week after receiving their first or second mRNA Covid-19 vaccine doses, the expert committee on Covid-19 vaccination and the Health Sciences Authority (HSA) said yesterday.
https://www.straitstimes.com/singapore/health/hsa-avoid-strenuous-activity-after-1st-or-2nd-dose-of-jab

Wide-ranging review of Covid-19 response after situation stabilises
There will be a wide-ranging review of the Government’s Covid-19 response after the situation has stabilised, to allow Singapore to learn valuable lessons and improve its response to pandemics in future.
https://www.straitstimes.com/singapore/wide-ranging-review-of-covid-19-response-after-situation-stabilises

Queues to collect oximeter on first day of distribution
Queues formed at supermarkets and pharmacies yesterday, the first day of the distribution of free oximeters to every household in Singapore. The device, given out by Temasek Foundation, checks the oxygen level in the blood to detect early signs of a deterioration in health.
https://www.straitstimes.com/singapore/queues-to-collect-oximeter-on-first-day-of-distribution

*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