DAILY NEWS

Daily News – 7 Oct 2020 (Wed)

Singapore Real Estate

Grade A office leasing in Singapore still sluggish in Q3 amid work-from-home trend
Leasing activity for Grade A offices in Singapore came to a halt during the “circuit breaker” period and remained sluggish during the third quarter this year, says real-estate services firm Cushman & Wakefield (C&W).
https://www.businesstimes.com.sg/real-estate/grade-a-office-leasing-in-singapore-still-sluggish-in-q3-amid-work-from-home-trend
https://www.straitstimes.com/business/property/singapore-office-rents-drop-in-q3-as-tenants-seek-short-term-renewals

The debate between DPU and NAV
The Singapore real estate investment trust (Reit) regime started in 2002 when it saw the successful listing of its first Reit. Over the course of 18 years, the market segment has now grown to 43 Reits and property trusts totalling around S$100 billion in market capitalisation. Singapore now has the largest Reit market in Asia (ex-Japan) and continues to be on a growth trajectory to becoming a global Reit hub.
https://www.businesstimes.com.sg/opinion/the-debate-between-dpu-and-nav

Real estate deals leading local surge in mergers and acquisitions
Deal-making in Singapore is picking up pace, with the real estate sector leading the charge. The heightened activity signals growing optimism among companies and investors that there will be a strong rebound from the depths of the coronavirus-induced recession.
https://www.straitstimes.com/business/property/real-estate-deals-leading-local-surge-in-mergers-and-acquisitions

About 200 defects in Woodlands BTO flats being rectified
About 200 defects reported by flat owners in the Woodlands Glen Build-To-Order (BTO) project are being rectified by the building contractor and the Housing Board, said Second Minister for National Development Indranee Rajah.
https://www.straitstimes.com/singapore/politics/about-200-defects-in-woodlands-bto-flats-being-rectified

Duct at Nex shopping mall that injured 2 most likely fell due to weight of accumulated water: BCA
The collapse of a ventilation duct in a Nex mall cinema was most likely due to waterlogged insulation material whose weight had overloaded the duct’s supporting brackets, according to the Building and Construction Authority’s (BCA) preliminary findings.
https://www.straitstimes.com/singapore/duct-at-nex-most-likely-fell-due-to-weight-of-accumulated-water-bca

Ownership transfer: HDB may seize flats over false statements
Home owners may have their flats seized by the Housing Board if they intentionally make misleading or false statements when transferring flat ownership, following legislative changes that Parliament passed yesterday.
https://www.straitstimes.com/singapore/politics/ownership-transfer-hdb-may-seize-flats-over-false-statements

Singapore Economy

Singapore plans Air Travel Bubbles for general travellers to revive Changi air hub
Singapore is hoping to establish Air Travel Bubbles with safe countries or regions that would allow general travellers to cross borders without a controlled itinerary, Transport Minister Ong Ye Kung said on Tuesday. These Air Travel Bubbles are not the same as Reciprocal Green Lanes, which are for official and essential business travel, he added. Singapore currently has green lanes with Brunei, China, Japan, Malaysia and South Korea.
https://www.businesstimes.com.sg/government-economy/singapore-plans-air-travel-bubbles-for-general-travellers-to-revive-changi-air
https://www.straitstimes.com/singapore/politics/spore-explores-air-travel-bubbles-in-push-to-reopen-borders-safely
https://www.straitstimes.com/singapore/politics/critical-to-revive-changi-air-hub-ong
https://www.straitstimes.com/singapore/politics/new-rules-for-visitors-in-the-works-as-republic-opens-up-air-travel

Covid-19 has caused deep crisis for SIA, Changi Airport Group: Minister
Had it not been for major moves like cutting jobs, Singapore Airlines (SIA) would not be around today, Transport Minister Ong Ye Kung said yesterday, as he unpacked how Covid-19 has caused a “deep crisis” for the national carrier and Changi Airport Group (CAG).
https://www.straitstimes.com/singapore/politics/covid-19-has-caused-deep-crisis-for-sia-changi-airport-group-minister
https://www.straitstimes.com/singapore/politics/rethinking-how-sia-can-again-be-a-great-way-to-fly

Q3 prompt payments hit new low: credit bureau
Prompt payments fell to a new low in the third quarter of 2020, and accounted for less than two-fifths of total payment transactions, the Singapore Commercial Credit Bureau (SCCB) said on Tuesday. Although local payment performance deteriorated during the quarter, some slight improvements were seen in certain sectors, the SCCB said in a statement.
https://www.businesstimes.com.sg/government-economy/q3-prompt-payments-hit-new-low-credit-bureau
https://www.straitstimes.com/business/economy/prompt-payments-hit-8-year-low-construction-firms-suffer-the-most

Retrenchments hit 4.9 per 1,000 local employees in H1
The incidence of local retrenchment in Singapore was 4.9 per 1,000 local employees (Singaporeans and permanent residents) in the first half of 2020, said Manpower Minister Josephine Teo in Parliament on Tuesday. For senior workers aged 60 and above, the incidence of local retrenchment was 5.2 per 1,000 local employees. Half of the locals retrenched were women.
https://www.businesstimes.com.sg/government-economy/retrenchments-hit-49-per-1000-local-employees-in-h1
https://www.straitstimes.com/singapore/politics/9-in-10-eligible-employees-received-retrenchment-payouts

Changi falls from 7th to 58th on the world’s busiest airport list
Once the seventh busiest airport in the world for international passenger traffic, Changi Airport has now slipped to 58th place. At present, the airport serves only 1.5 per cent of Singapore’s usual passenger volume and 6 per cent of the usual number of passenger flights – the weak figures compounded due to the lack of domestic air travel, said Transport Minister Ong Ye Kung in Parliament on Tuesday.
https://www.businesstimes.com.sg/government-economy/changi-falls-from-7th-to-58th-on-the-worlds-busiest-airport-list

Companies’ Brief

SPH Reit posts lower H2 DPU on rent waivers, capital retention
SPH Reit on Tuesday evening said it posted a distribution per unit (DPU) of 1.04 Singapore cents for the half-year period ended Aug 31, 2020, compared to 2.85 cents paid out in the corresponding period a year ago.
https://www.businesstimes.com.sg/companies-markets/sph-reit-posts-lower-h2-dpu-on-rent-waivers-capital-retention
https://www.straitstimes.com/business/companies-markets/sph-reit-dpu-lower-after-capital-allowance-distribution-deferment

Wee Hur’s Adelaide student housing property to launch next January under new brand
Wee Hur Holdings’ purpose-built student accommodation (PBSA) property at 124 Waymouth Street in Adelaide will be the first to be launched under its new Y Suites brand. The mainboard-listed group’s wholly owned subsidiary, Wee Hur Hospitality, on Tuesday announced Y Suites as the brand for its PBSA portfolio in Australia.
https://www.businesstimes.com.sg/companies-markets/wee-hurs-adelaide-student-housing-property-to-launch-next-january-under-new-brand

Temasek to form asset management group Seviora
Temasek Holdings will establish Seviora Holdings, a Singapore-based asset management group that will offer a broad range of multi-asset and multi-strategy investment expertise.
https://www.businesstimes.com.sg/government-economy/temasek-to-form-asset-management-group-seviora
https://www.straitstimes.com/business/companies-markets/temasek-setting-up-new-entity-with-75b-worth-of-managed-assets

Views, Reviews, Forum & Others

Becoming more agile, more resilient
While business activity is gradually resuming in Singapore, vigilance remains constant as the world works towards developing a vaccine. For business leaders, similar vigilance can help them remain competitive through this period and emerge stronger from the crisis.
https://www.businesstimes.com.sg/opinion/becoming-more-agile-more-resilient

Economic Affairs: Recipes for the region to ‘build back better’
Last week, the World Bank released its October update on the developing economies of East Asia and the Pacific (EAP) after nine months of grappling with the Covid-19 pandemic. The report, which does not cover Singapore, makes for grim reading, but also points to some silver linings.
https://www.straitstimes.com/opinion/recipes-for-the-region-to-build-back-better-0

New masterplan to protect national digital sphere
Businesses in Singapore are set to benefit from free cyber-health screenings to spot weaknesses in their Web domains, e-mail systems and connectivity. This is part of the newly unveiled Safer Cyberspace Masterplan 2020, which aims to protect Singapore’s digital sphere.
https://www.straitstimes.com/tech/new-masterplan-to-protect-national-digital-sphere

Firms need to equip workers with digital skills: Iswaran
Covid-19 and its disruptions have made digitalisation imperative, which has in turn allowed some businesses that invested early in technology to perform well and hire more people. But companies must also equip their staff to seize the opportunities that digital innovation can bring, said Communications and Information Minister S. Iswaran.
https://www.straitstimes.com/singapore/firms-need-to-equip-workers-with-digital-skills-iswaran

Capital cycles provide clues on when could be a good time to invest
The world around us is regulated by cycles. Seasons are dependent on the planet’s orbit around the sun – a full cycle takes 365 days. Precipitation is a result of water going through the processes of evaporation and condensation, repeating ad infinitum.
https://www.businesstimes.com.sg/wealth-investing/capital-cycles-provide-clues-on-when-could-be-a-good-time-to-invest

Relief extension to smoothen out credit costs for Singapore banks: analysts
Analysts see a mild positive on the Singapore banks from the latest move by the Singapore regulator to extend debt relief for certain individuals and small businesses into 2021.
https://www.businesstimes.com.sg/companies-markets/relief-extension-to-smoothen-out-credit-costs-for-singapore-banks-analysts-0

Local golf clubs cracking down on first bot, first served booking
The inability to travel and play golf in Bintan, Batam and Malaysia, especially in Johor – all popular destinations for Singapore golfers – has caused heavy demand and a severe strain on local clubs to ensure “fair play” when it comes to managing their flight booking.
https://www.businesstimes.com.sg/life-culture/local-golf-clubs-cracking-down-on-first-bot-first-served-booking

Update on COVID-19 (Coronavirus Disease 2019) Situation

Sentosa attractions, Ikea Tampines visited by infectious Covid-19 patients
Universal Studios Singapore, Hard Rock Cafe in Resorts World Sentosa and Ikea Tampines were visited by infectious Covid-19 patients, said the Health Ministry yesterday. Supermarkets such as Giant Hypermarket in Tampines and newEcon – Top Choice Supermarket at 84 Bayshore Road were also added to the list of places visited by Covid-19 patients while they were infectious.
https://www.straitstimes.com/singapore/sentosa-attractions-ikea-tampines-visited-by-infectious-covid-19-patients-0

21 diners fined for violating virus safety rules; 2 eateries told to close
Twenty-one diners have been fined $300 each for flouting Covid-19 rules at food and beverage outlets, such as not wearing a mask promptly after eating or drinking, intermingling between tables and sitting in groups of more than five.
https://www.straitstimes.com/singapore/21-diners-fined-for-violating-virus-safety-rules-2-eateries-told-to-close

Bosses urged to offer flexi hours to avoid crowding on public transport
Flexible hours for those who need to be in the office should be considered as public transport passenger volume climbs with the easing of restrictions at workplaces. Transport Minister Ong Ye Kung is encouraging employers to allow staff who are now working from home to start their day in the morning at home.
https://www.straitstimes.com/singapore/bosses-urged-to-offer-flexi-hours-to-avoid-crowding-on-public-transport

WHO’s chief holds out hope for Covid-19 vaccine by end of the year
Geneva • A Covid-19 vaccine may be ready by year end, the head of the World Health Organisation (WHO) said yesterday. WHO director-general Tedros Adhanom Ghebreyesus did not give details, but urged solidarity and political commitment by all leaders to ensure equal distribution of vaccines when they become available.
https://www.straitstimes.com/asia/se-asia/whos-chief-holds-out-hope-for-covid-19-vaccine-by-end-of-the-year
*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