Singapore Real Estate
ABSD concessions an ‘olive branch’ but won’t offer much relief to developers
Revisions to the Additional Buyer’s Stamp Duty (ABSD) regime for land are a signal that the government acknowledges the challenges property developers face in today’s market, but will not go far in lowering costs or offering relief, market watchers said.
https://www.businesstimes.com.sg/property/budget-2024-absd-concessions-olive-branch-wont-offer-much-relief-developers
Tweak in ABSD on land to give developers more leeway on sales
Housing developers will be granted some flexibility under the Additional Buyers’ Stamp Duty (ABSD) regime, said Finance Minister Lawrence Wong on Friday (Feb 16). The revisions will reduce the amount of ABSD payable by developers on their land purchases, if they fail to sell out their projects within a five-year timeline.
https://www.businesstimes.com.sg/property/budget-2024-tweak-absd-land-give-developers-more-leeway-sales
https://www.businesstimes.com.sg/singapore/budget-2024-absd-land-tweaked-give-housing-developers-more-flexibility-sales
Quick takes on lower ABSD clawback rate for developments with 90% of units sold
Housing developers will enjoy a lower Additional Buyer’s Stamp Duty (ABSD) clawback rate for developments that have sold at least 90 per cent of units within their prescribed sale timeline, said Finance Minister Lawrence Wong in his Budget speech on Friday (Feb 16).
https://www.businesstimes.com.sg/singapore/budget-2024-quick-takes-lower-absd-clawback-rate-developments-90-units-sold
Single Singaporean seniors to get ABSD refund when ‘right-sizing’ to lower-value property
Single Singaporeans aged 55 and above will now be able to claim a refund of Additional Buyer’s Stamp Duty (ABSD) when they purchase a lower-value private property to replace their existing residential property.
https://www.businesstimes.com.sg/singapore/budget-2024-single-singaporean-seniors-get-absd-refund-when-right-sizing-lower-value
Quick takes on lower property tax bills with revised annual value bands
The annual value (AV) bands of owner-occupier residential property tax rates will increase from Jan 1, 2025, in a bid to keep up with market trends, Finance Minister Lawrence Wong said in his Budget speech on Friday (Feb 16).
https://www.businesstimes.com.sg/singapore/budget-2024-quick-takes-lower-property-tax-bills-revised-annual-value-bands
https://www.businesstimes.com.sg/singapore/budget-2024-lower-property-tax-bills-homeowners-revised-annual-value-bands
https://www.straitstimes.com/singapore/budget-2024-some-homeowners-to-pay-lower-property-tax-with-raising-of-annual-value-bands-from-2025
https://www.todayonline.com/singapore/budget-2024-property-tax-go-down-some-home-owners-raising-annual-value-bands-2364346
https://www.channelnewsasia.com/singapore/budget-2024-property-tax-annual-values-band-lawrence-wong-additional-buyers-stamp-duty-4128671
Property tax changes welcomed to ease homeowners’ tax burdens
Changes to property tax bands announced in the Budget will help ease next year’s tax burden for many homeowners who saw their bills swell unexpectedly this year. Property annual value (AV) bands for owner-occupied residential properties in Singapore will be revised upwards from Jan 1, 2025.
https://www.businesstimes.com.sg/property/budget-2024-property-tax-changes-welcomed-ease-homeowners-tax-burdens
How will changes to property tax impact homeowners and the market?
Singapore: Many owner-occupied properties, especially those in the mid-tier categories, will stand to benefit as property tax is set to go down with raising annual value (AV) bands, said property analysts.
https://www.channelnewsasia.com/singapore/budget-2024-property-tax-annual-values-analysts-lawrence-wong-4129296
Couples waiting for BTO flats will get one-year voucher to rent HDB flat in open market
Eligible young families with urgent housing needs will receive further support from the government under the Parenthood Provisional Housing Scheme (PPHS) as they wait for their Build-To-Order (BTO) flats to be ready.
https://www.businesstimes.com.sg/singapore/budget-2024-couples-waiting-bto-flats-will-get-one-year-voucher-rent-hdb-flat-open-market
https://www.todayonline.com/singapore/budget-2024-couples-waiting-bto-flats-get-govt-voucher-rent-hdb-homes-open-market-2364126
How tenants can end their leases legally
Tenancy agreements usually favour landlords since they own the property, but you should still negotiate for terms that safeguard your interests. Say you are renting temporarily while waiting for your home to be built.
https://www.straitstimes.com/business/invest/how-tenants-can-end-their-leases-legally
https://www.todayonline.com/singapore/budget-2024-couples-waiting-bto-flats-get-govt-voucher-rent-hdb-homes-open-market-2364126
Singapore Economy & Budget 2024
S’pore taxman gets more powers to administer government grants with passing of Iras (Amendment) Bill
The taxman disbursed $4.6 billion worth of grants to around 120,000 businesses in 2023, but that huge amount was put in the shade by the sums outlaid when the pandemic was raging.
https://www.straitstimes.com/business/changes-to-irasamendment-bill-grants-taxman-more-powers-to-administer-government-grants
Budget 2024 Speech – MOF
https://www.mof.gov.sg/docs/librariesprovider3/budget2024/download/pdf/fy2024_budget_statement.pdf
What Budget 2024 has for you
Against the stark realities of a less stable operating environment, Budget 2024 is about taking concrete steps to build a shared future together, Finance Minister Lawrence Wong said in this year’s Budget Statement on Feb 16. This includes tackling immediate challenges, while equipping Singaporeans for longer-term obstacles, to ultimately “forge a stronger and more united nation”. The Business Times takes a look at the different types of support groups of Singaporean can expect from Budget 2024.
https://www.businesstimes.com.sg/singapore/what-budget-2024-has-you
https://www.straitstimes.com/singapore/budget-2024-what-s-in-it-for-you
https://www.straitstimes.com/singapore/budget-2024-tackles-immediate-challenges-for-households-sets-longer-term-goals-for-economy-and-workers
https://www.todayonline.com/singapore/budget-2024-cheat-sheet-what-you-need-know-2364181
https://www.channelnewsasia.com/singapore/budget-2024-key-takeaways-cpf-cdc-property-tax-4128956
Singapore’s budget has ‘something for everyone’ amid rising living costs. Does move signal an election is near?
Singapore’s second-in-command Lawrence Wong on Friday unveiled a budget aimed at relieving families and businesses of the pressures of rising costs of living, with a raft of goodies signalling a potential gear-up for an election. Analysts said there appeared to be “something for everyone in the budget”, a historical trend that suggested the approach of the polls, due to be called by November 2025.
https://www.scmp.com/week-asia/economics/article/3252182/singapore-budget-focuses-relief-households-businesses-amid-rising-costs-we-have-your-backs
Budget 2024: FY2023 revised fiscal deficit widens to S$3.6 billion; FY2022 posts surplus
Singapore’s fiscal deficit for FY2023 has been revised to S$3.6 billion, widening sharply from the earlier S$0.4 billion estimate – partly due to the S$7.5 billion Majulah Package announced in last year’s National Day Rally.
https://www.businesstimes.com.sg/singapore/budget-2024-fy2023-revised-fiscal-deficit-widens-s36-billion-fy2022-posts-surplus
https://www.todayonline.com/singapore/budget-2024-s36b-deficit-incurred-2023-fiscal-year-despite-higher-expected-revenues-balanced-fiscal-position-expected-year-2364191
Budget 2024: First planned surplus in 7 years in FY2024, albeit ‘small’, at S$778 million
Singapore is planning a year of small budget surplus, breaking a six-year planned deficit streak, even with major upgrades to areas such as transport, healthcare and education. The estimated S$778 million surplus came as two of the last three planned deficits – in FY2021 and FY2022 – later turned out to be surpluses.
https://www.businesstimes.com.sg/singapore/budget-2024-first-planned-surplus-7-years-fy2024-albeit-small-s778-million
https://www.straitstimes.com/singapore/government-revenue-in-fy2023-better-than-expected-small-budget-surplus-of-08b-expected-for-fy2024
Budget 2024: Singapore to introduce new refundable tax credit to attract high-quality investments
Singapore is introducing a new refundable tax credit to remain competitive and continue to attract high-quality investments, said Deputy Prime Minister and Finance Minister Lawrence Wong on Friday (Feb 16).
https://www.channelnewsasia.com/singapore/budget-2024-singapore-introduce-new-refundable-tax-credit-attract-high-quality-investments-4128701
https://www.businesstimes.com.sg/singapore/budget-2024-new-refundable-investment-credit-high-value-economic-activities-s2-billion
Budget 2024: Singapore to move ahead with corporate tax reform under global initiative
Singapore will impose new corporate taxes in 2025 to abide by a global initiative aimed at tackling tax avoidance by multinational enterprises (MNEs). The initiative aims to ensure a global minimum effective tax rate of 15 per cent for large MNEs.
https://www.straitstimes.com/business/budget-2024-singapore-to-move-ahead-with-corporate-tax-reform-under-global-initiative
https://www.businesstimes.com.sg/singapore/budget-2024-upcoming-corporate-tax-changes-under-pillar-2-beps-20-provide-welcome
Budget 2024: Companies to get corporate income tax rebate of up to 50 per cent
Companies will receive a 50 per cent corporate income tax rebate, capped at $40,000, in the year of assessment 2024. This is part of a $1.3 billion package to help companies manage the rising cost of doing business.
https://www.straitstimes.com/singapore/budget-2024-13-billion-package-to-help-companies-deal-with-higher-costs
https://www.businesstimes.com.sg/singapore/budget-2024-s13b-support-package-help-businesses-manage-costs
Budget 2024 watch party: What do young Singaporeans think about the announcements?
The five participants at TODAY’s Budget watch party on Feb 16, 2024 discussed issues related to the Budget announcements. (From left) Mr Ahmad Amsyar Mohd Adom, Ms Dawn Lim, Ms Larissa Santhana Nair, Mr Dev Bahl and Ms Justine Ong-Farmer.
https://www.todayonline.com/singapore/budget-2024-watch-party-young-singaporeans-views-announcements-2364031
Budget 2024: Individuals to get 50% personal income tax rebate for 2024
Amid concerns around the rising cost of living, all tax resident individuals in Singapore will get a personal income tax rebate of 50 per cent for the year of assessment 2024. The amount will be capped at S$200 so that the benefits go mostly to middle-income workers, said Finance Minister Lawrence Wong in his Budget speech in Parliament on Friday (Feb 16).
https://www.businesstimes.com.sg/singapore/budget-2024-individuals-get-50-personal-income-tax-rebate-2024
https://www.straitstimes.com/singapore/budget-2024-resident-taxpayers-to-get-personal-income-tax-rebate-of-up-to-200
Budget 2024: Quick takes on SkillsFuture Level-Up programme
The Singapore government will introduce a new SkillsFuture Level-Up programme to better support the city-state’s mid-career workers, Finance Minister Lawrence Wong announced in his Budget 2024 speech on Friday (Feb 16).
https://www.businesstimes.com.sg/singapore/budget-2024-quick-takes-skillsfuture-level-programme
https://www.straitstimes.com/singapore/budget-2024-4000-skillsfuture-credit-top-up-further-subsidies-for-diploma-courses
https://www.todayonline.com/singapore/budget-2024-s4000-skillsfuture-topup-workers-2364101
https://www.channelnewsasia.com/singapore/budget-2024-skillsfuture-top-4128721
Budget 2024: Higher co-funding level, income ceiling for Progressive Wage Credit Scheme
Employers will get more support to raise the salaries of lower-income workers, with the co-funding levels and pay ceiling of the Progressive Wage Credit Scheme (PWCS) to be raised, said Finance Minister Lawrence Wong on Friday (Feb 16).
https://www.businesstimes.com.sg/singapore/budget-2024-higher-co-funding-level-income-ceiling-progressive-wage-credit-scheme
Budget 2024: Firms hiring foreigners must pay locals minimum S$1,600 wage, up from S$1,400
Local employees who work at companies that hire foreign workers must soon be paid a minimum full-time wage of S$1,600, up 14 per cent from S$1,400, or a part-time hourly rate of S$10.50 per hour, up from S$9 per hour.
https://www.businesstimes.com.sg/singapore/budget-2024-firms-hiring-foreigners-must-pay-locals-minimum-s1600-wage-s1400
Budget 2024: Higher payouts, income cap under enhanced Workfare Income Supplement scheme
Lower-wage senior workers will qualify for a higher maximum payout as part of enhancements to the Workfare Income Supplement scheme. The maximum annual payout will be raised to S$4,900 from S$4,200 currently, said Finance Minister Lawrence Wong in his Budget speech on Friday (Feb 16).
https://www.businesstimes.com.sg/singapore/budget-2024-higher-payouts-income-cap-under-enhanced-workfare-income-supplement-scheme
https://www.straitstimes.com/singapore/budget-2024-lower-wage-workers-to-get-more-workfare-payout
Budget 2024: Rise in local qualifying salary a ‘natural adjustment’ but smaller companies likely to be hard-hit, say observers
While the government’s move to raise the local qualifying salary (LQS) for companies here is a “natural adjustment”, smaller businesses struggling to hire workers will be hard-hit by the increase, say industry observers.
https://www.businesstimes.com.sg/singapore/budget-2024-rise-local-qualifying-salary-natural-adjustment-smaller-companies-likely-be
Budget 2024: S$8.2 billion Majulah Package to benefit 1.6 million Singaporeans
Around 1.6 million Singaporeans will get a boost for their retirement through the Majulah Package, with means-tested bonuses for eligible seniors, as well as a Medisave Bonus for all seniors born in 1973 or earlier.
https://www.businesstimes.com.sg/singapore/budget-2024-s82-billion-majulah-package-benefit-16-million-singaporeans
https://www.straitstimes.com/singapore/budget-2024-16-million-older-singaporeans-to-benefit-from-82-billion-majula-package
Budget 2024: S$1.9 billion more for Assurance Package, extra S$600 CDC vouchers for all Singaporean households
To help residents cope with cost-of-living concerns and economic uncertainties, the government will inject an additional S$1.9 billion into enhancements for the Assurance Package (AP). In his Budget speech on Friday (Feb 16), Finance Minister Lawrence Wong noted that the AP enhancements will support Singapore residents and households in four main areas.
https://www.businesstimes.com.sg/singapore/budget-2024-s19-billion-more-assurance-package-extra-s600-cdc-vouchers-all-singaporean
https://www.straitstimes.com/singapore/budget-2024-assurance-package-to-be-enhanced-by-19-billion-to-support-households
https://www.todayonline.com/singapore/budget-2024-cash-assurance-package-2364016
https://www.channelnewsasia.com/singapore/budget-2024-cash-payout-cdc-voucher-personal-tax-rebate-4128716
Budget 2024: Higher CPF contribution rates for workers 55 to 65; closure of Special Account for those aged 55 and above
To support the retirement needs of Singapore’s seniors, the Central Provident Fund (CPF) contribution rates for those aged 55 to 65 will be raised by a further 1.5 percentage points in 2025.
https://www.businesstimes.com.sg/singapore/budget-2024-higher-cpf-contribution-rates-workers-55-65-closure-special-account-those
https://www.straitstimes.com/singapore/budget-2024-higher-cpf-retirement-sum-ceiling-from-2025-among-slew-of-changes
https://www.todayonline.com/singapore/budget-2024-special-account-no-more-cpf-members-above-55-enhanced-retirement-sum-rise-2364111
https://www.channelnewsasia.com/singapore/budget-2024-retirement-account-special-account-cpf-412881
Budget 2024: 1.4 million Singaporeans to get one-time S$300 MediSave Bonus
Adult Singaporeans aged 21 to 50 will receive a one-time MediSave Bonus of up to S$300, among various enhancements to healthcare benefits, said Finance Minister Lawrence Wong on Friday (Feb 16).
https://www.businesstimes.com.sg/singapore/budget-2024-14-million-singaporeans-get-one-time-s300-medisave-bonus
Budget 2024: Grant for charity collaboration extended, new tax deduction for overseas humanitarian aid introduced
The Charities Capability Fund Collaboration Grant will be extended by three years to encourage charities to work together and meet the needs of their beneficiaries, said Finance Minister Lawrence Wong on Friday (Feb 16).
https://www.businesstimes.com.sg/singapore/budget-2024-grant-charity-collaboration-extended-new-tax-deduction-overseas-humanitarian
https://www.straitstimes.com/singapore/budget-2024-tax-deductions-for-donations-to-overseas-humanitarian-relief-efforts-as-s-pore-moves-to-strengthen-culture-of-giving
Business News
With gearing at a low 31.3%, ‘buy’ Far East Hospitality Trust ahead of likely Japan acquisitions, Taylor Swift concerts
With gearing at just 31.3% as at end-2023, Far East Hospitality Trust Q5T – (FEHT) is looking for acquisitions this year, likely in Japan or Singapore. At the release of the REIT’s results for FY2023 ended Dec 31, 2023, the manager signalled that it continues to look for acquisitions in Japan given the positive yield spread, with asset yields around 4%.
https://www.theedgesingapore.com/capital/brokers-calls/gearing-low-313-buy-far-east-hospitality-trust-ahead-likely-japan-acquisitions
Keppel has some solutions for Singapore’s clean energy needs
It is clear that Singapore will not be able to get to net zero without importing clean energy. During the Budget 2024 speech on Feb 16, DPM and Finance Minister Lawrence Wong said there is a limit to how much clean energy that Singapore can import in without compromising security.
https://www.theedgesingapore.com/views/budget-2024/budget-2024-keppel-has-some-solutions-singapores-clean-energy-needs
SIC says no further action on advisers to the manager of Mapletree Commercial Trust
On Feb 16, based on an announcement by the Monetary Authority of Singapore (MAS), the Securities Industries Council (SIC) has found that Allen & Gledhill (A&G) and DBS Bank “have fallen short of the standards expected of advisers” and both A&G and DBS have “breached” the Singapore Code on Take-overs and Mergers.
https://www.theedgesingapore.com/news/reits/sic-says-no-further-action-advisers-manager-mapletree-commercial-trust
https://www.businesstimes.com.sg/companies-markets/sic-flags-breaches-advisers-allen-gledhill-dbs-during-2022-mapletree-merger
Global Economy & Real Estate
Fed’s Bostic says may take ‘some time’ to hit rate-cut threshold
https://www.theedgesingapore.com/news/us-economy/feds-bostic-says-may-take-some-time-hit-rate-cut-threshold
US consumer sentiment steady in February
https://www.businesstimes.com.sg/international/us-consumer-sentiment-steady-february
US producer prices rise more than expected in January
https://www.businesstimes.com.sg/international/us-producer-prices-rise-more-expected-january
US single-family housing starts fall in January; permits rise
https://www.businesstimes.com.sg/property/us-single-family-housing-starts-fall-january-permits-rise
Blame baby boomers for US housing market inventory shortage
https://www.businesstimes.com.sg/property/blame-baby-boomers-us-housing-market-inventory-shortage
Australia’s push to put more solar panels on rental homes
https://www.businesstimes.com.sg/property/australias-push-put-more-solar-panels-rental-homes
China unlikely to cut major policy rate amid inflation, yuan pressure as ‘risk versus reward doesn’t seem attractive’
https://www.scmp.com/economy/economic-indicators/article/3252141/china-unlikely-cut-major-policy-rate-amid-inflation-yuan-pressure-risk-versus-reward-doesnt-seem
As Chinese scramble to save money, ‘everyone realises winter has come’, and they’re trying to get out of the cold
https://www.scmp.com/economy/china-economy/article/3252090/chinese-scramble-save-money-everyone-realises-winter-has-come-and-theyre-trying-get-out-cold
China holiday travel surge signals consumer spending pickup
https://www.businesstimes.com.sg/international/global/china-holiday-travel-surge-signals-consumer-spending-pickup
https://www.straitstimes.com/business/china-s-cny-travel-surge-signals-consumer-spending-pick-up
China steps up ‘whitelist’ mechanism for property sector: media
https://www.businesstimes.com.sg/property/china-steps-whitelist-mechanism-property-sector-media
https://www.channelnewsasia.com/business/china-steps-whitelist-mechanism-property-sector-media-4128556
Can the Greater Bay Area lure foreign investors? Beijing wants Hong Kong to draw international capital into region, but global firms still hazy about benefits
https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3252240/can-greater-bay-area-lure-foreign-investors-beijing-wants-hong-kong-draw-international-capital
China builder Logan gets respite as liquidation petitions fail
https://www.businesstimes.com.sg/property/china-builder-logan-gets-respite-liquidation-petitions-fail
Eurozone’s low productivity may slow inflation’s fall: ECB
https://www.businesstimes.com.sg/international/eurozones-low-productivity-may-slow-inflations-fall-ecb
Retailers demand more action from EU to resolve Red Sea crisis
https://www.businesstimes.com.sg/international/global/retailers-demand-more-action-eu-resolve-red-sea-crisis
Hong Kong arrests seven in US$1.8 billion money laundering case
https://www.businesstimes.com.sg/international/global/hong-kong-arrests-seven-us18-billion-money-laundering-case
https://www.channelnewsasia.com/asia/hong-kong-authorities-arrest-seven-us18-billion-money-laundering-case-4128491
People’s ‘assets are disappearing’: Midland Realty chairman sounds the alarm as he urges removal of all Hong Kong property cooling measures
https://www.scmp.com/business/banking-finance/article/3252210/peoples-assets-are-disappearing-midland-realty-chairman-sounds-alarm-he-urges-removal-all-hong-kong
Hong Kong residents, businesses slowly waking up to Greater Bay Area’s potential – but more needs to be done, say experts and politicians
https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3251842/hong-kong-residents-businesses-slowly-waking-greater-bay-areas-potential-more-needs-be-done-say
HK$1.13 billion price tag for Hong Kong New Territories highway study questioned; lawmaker says city goes at ‘turtle speed’ on big road projects
https://www.scmp.com/news/hong-kong/transport/article/3252243/hk113-billion-price-tag-hong-kong-new-territories-highway-study-questioned-lawmaker-says-city-goes
Macau sees record Chinese New Year visitors in boost for casinos
https://www.businesstimes.com.sg/international/macau-sees-record-chinese-new-year-visitors-boost-casinos
BOJ’s Ueda keeps pledge to review stimulus when price goal met
https://www.businesstimes.com.sg/companies-markets/banking-finance/bojs-ueda-keeps-pledge-review-stimulus-when-price-goal-met
Taiwan to bring in Indian migrant workers to ease job crunch
https://www.businesstimes.com.sg/international/taiwan-bring-indian-migrant-workers-ease-job-crunch
Thailand plans 1.19 trillion baht public-private investment projects during 2020-2027
https://www.businesstimes.com.sg/international/asean/thailand-plans-119-trillion-baht-public-private-investment-projects-during-2020
https://www.channelnewsasia.com/business/thailand-plans-33-billion-public-private-investment-projects-during-2020-202-4128966
Thailand plans to waive visas for more countries
https://www.businesstimes.com.sg/international/asean/thailand-plans-waive-visas-more-countries
UK retail sales jump, signalling quick end to recession
https://www.businesstimes.com.sg/international/uk-retail-sales-jump-signalling-quick-end-recession
London’s prime homes suffer sharpest price drop in five years
https://www.businesstimes.com.sg/property/londons-prime-homes-suffer-sharpest-price-drop-five-years
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