DAILY NEWS

Daily News – 19 July 2022 (Tue)

SINGAPORE REAL ESTATE

Code of conduct covering retail space leasing to be turned into law
The recommendation by the Fair Tenancy Industry Committee (FTIC) to legislate compliance with the code of conduct (COC) for fair tenancy has been accepted by the Singapore government, the Ministry of Trade and Industry (MTI) and Singapore Business Federation (SBF) announced in their respective press statements on Jul 18.
https://www.businesstimes.com.sg/sme/code-of-conduct-covering-retail-space-leasing-to-be-turned-into-law
https://www.straitstimes.com/business/property/more-retail-landlords-following-code-of-conduct-on-fair-tenancy-practices-before-its-legislation

Singapore Handicrafts Building for sale at S$15m guide price
The Singapore Handicrafts Building has been put up for sale for a price “in the region of S$15 million”, its exclusive marketing agent JLL Singapore said on Monday (Jul 18). The property, located at 72 Eunos Avenue 7, comprises a 6-storey light industrial factory with an ancillary showroom on the ground floor and ancillary office, warehousing and production spaces on the upper floors, as well as 20 car-parking facilities.
https://www.businesstimes.com.sg/real-estate/singapore-handicrafts-building-for-sale-at-s15m-guide-price

Ageing 99-year leasehold condos still appreciate, but lag benchmark median gain
A common perception is that an ageing 99-year leasehold condominium is likely to see price declines as its lease decays, but a new study has found quite the opposite. In examining transaction data of such condos that are at least 35 years old, ERA Research & Consultancy has observed that their prices have continued to increase over the past 13 years (See table).
https://www.businesstimes.com.sg/real-estate/ageing-99-year-leasehold-condos-still-appreciate-but-lag-benchmark-median-gain

Digital real estate: going beyond mere space
Over the past few years, traditional operating models have been considerably disrupted across many sectors. However, few sectors have felt it more than commercial real estate (CRE). Though this disruption has in a large part been accelerated by Covid-19, underlying it is a fundamental shift in the changing demands in real estate consumption.
https://www.businesstimes.com.sg/opinion/digital-real-estate-going-beyond-mere-space

20 years on, S-Reits market must step up and remain a ‘gateway to the world’
The real estate investment trust (Reit) market in Singapore started 20 years ago this week. And it has since experienced explosive growth to become the largest Reit and property trust market in Asia outside Japan.
https://www.businesstimes.com.sg/companies-markets/20-years-on-s-reits-market-must-step-up-and-remain-a-gateway-to-the-world

Launch of DBS’ new net-zero energy building brings Singapore’s total to 19
Singapore – A new net-zero energy building was launched on Monday (July 18), joining 18 net-zero energy and 35 super low energy buildings, in the Government’s push to reduce carbon emissions.
https://www.straitstimes.com/singapore/launch-of-dbss-new-net-zero-energy-building-brings-singapores-total-to-19

Active management can make big bets on coffee shops pay off
There have been various reports of record prices achieved on transactions of HDB resale flats, as more such flats get sold for over a million dollars each. Recently, the sale of two HDB coffee shops generated much buzz.
https://www.businesstimes.com.sg/opinion/active-management-can-make-big-bets-on-coffee-shops-pay-off

SINGAPORE ECONOMY

Singaporeans’ inflation expectations ease: poll
Singaporeans’ expectations for headline inflation for the year ahead has fallen, down to 3.9 per cent from 4.1 per cent last quarter due to a dampened growth outlook, according to this quarter’s Singapore Index of Inflation Expectations (SInDEx) results.
https://www.businesstimes.com.sg/government-economy/singaporeans-inflation-expectations-ease-poll

Singapore electronics tipped to stay positive in 2022 despite slower exports growth
Exports from Singapore’s linchpin electronics industry slowed in June, even as analysts warned of cooling economic growth and rising risks to global trade. But the electronics cluster is not likely to hit a downturn yet, watchers believe, with the trade sector tipped to stay positive through the rest of 2022 despite headwinds in the year ahead.
https://www.businesstimes.com.sg/government-economy/singapore-electronics-tipped-to-stay-positive-in-2022-despite-slower-exports

Salary, dismissal claims ease in 2021; MOM rolls back 2 Covid-linked notification rules
The overall incidence of employment claims and appeals fell in 2021, compared to the year before, alongside Singapore’s economic recovery from Covid-19, according to the Employment Standards Report 2021 released on Monday (Jul 18).
https://www.businesstimes.com.sg/government-economy/salary-dismissal-claims-ease-in-2021-mom-rolls-back-2-covid-linked-notification
https://www.straitstimes.com/singapore/jobs/fewer-pay-and-dismissal-disputes-last-year-as-singapore-economy-recovered

Framework for ‘equitable’ sharing of scam losses taking longer than expected: MAS
The process of developing a framework for equitable sharing of losses affecting scam victims has been taking longer than expected, the Monetary Authority of Singapore (MAS) said in an update on Monday (Jul 18).
https://www.businesstimes.com.sg/government-economy/framework-for-equitable-sharing-of-scam-losses-taking-longer-than-expected-mas
https://www.straitstimes.com/business/banking/draft-framework-for-fair-sharing-of-scam-losses-delayed-due-to-complexity-of-issues-involved-mas

COMPANIES’ BRIEF

Boustead Projects subsidiary awarded S$300m design-and-build contract
Boustead Projects’ wholly-owned engineering and construction subsidiary, Boustead Projects E&C, has been awarded a S$300 million design-and-build contract, the real estate solutions provider announced on Monday (Jul 18).
https://www.businesstimes.com.sg/companies-markets/boustead-projects-subsidiary-awarded-s300m-design-and-build-contract

Keppel data centre fund to develop China greenfield data centre with 1.4 billion yuan development cost
Keppel Data Centre Fund II (KDCF II) has entered into a strategic partnership with Heying — a wholly-owned subsidiary of Tianjin Zhengxin Group — to jointly develop a greenfield data centre in Greater Beijing, China.
https://www.businesstimes.com.sg/companies-markets/keppel-data-centre-fund-to-develop-china-greenfield-data-centre-with-14-billion
https://www.straitstimes.com/business/companies-markets/keppel-fund-in-tie-up-to-develop-another-data-centre-project-in-china

Mandarin Oriental divests Washington DC hotel for US$139m in gross proceeds
Mandarin Oriental International is selling its Washington DC hotel to London-headquartered private equity real estate manager Henderson Park, announced the hotelier on Tuesday (Jul 19). Following the sale completion scheduled for Sep 8, Mandarin Oriental, Washington DC will cease to be operated by the group.
https://www.businesstimes.com.sg/companies-markets/mandarin-oriental-divests-washington-dc-hotel-for-us139m-in-gross-proceeds

Lessons from the voluntary cash offer for TTJ
The lowball privatisation offer for construction engineering company TTJ Holdings was declared unconditional earlier this month, as the level of acceptances pushed the offeror’s stake past the 90 per cent threshold.
https://www.businesstimes.com.sg/opinion/lessons-from-the-voluntary-cash-offer-for-ttj

First Reit defends Siloam Hospitals Surabaya divestment as investors question rationale, benefits
Unitholders of First Reit have raised a number of questions regarding the company’s divestment of Siloam Hospitals Surabaya. In a bourse filing on Monday (Jul 18), the real estate investment trust (Reit) posted a lengthy list of questions that it had received from its unitholders, including queries on the rationale of the divestment, the resultant distribution per unit (DPU) changes, as well as the plans of the Reit manager to turn around the group’s business and profitability.
https://www.businesstimes.com.sg/companies-markets/first-reit-defends-siloam-hospitals-surabaya-divestment-as-investors-question

VIEWS, REVIEWS, FORUM AND OTHERS

Singapore banks urged to aim for transition out of SOR by Mar 31, 2023
Singapore’s banks are strongly urged to make reasonable efforts to actively transition out of or insert appropriate contractual fallbacks into all Swap Offer Rate (SOR) contracts maturing after Jun 30, 2023 by Mar 31, 2023, the steering committee for Sor & Sibor Transition to Sora said on Monday (Jul 18).
https://www.businesstimes.com.sg/banking-finance/singapore-banks-urged-to-aim-for-transition-out-of-sor-by-mar-31-2023

Blockchain will power ‘the back office of the world’ in 5 to 10 years
Beneath the speculative froth that led to the crypto meltdown in recent months, the blockchain train underpinning cryptocurrencies is still chugging along. In a candid interview with The Straits Times, DBS Bank chief executive officer Piyush Gupta said the bank spends about $600 million a year – half of its total tech budget – on experimenting with new technologies, including blockchain and artificial intelligence, as it prepares for a disrupted future.
https://www.straitstimes.com/opinion/blockchain-will-power-the-back-office-of-the-world-in-5-to-10-years

S’pore-based crypto hedge fund Three Arrows owes Genesis parent $1.7 billion
A creditor list of bankrupt crypto hedge fund Three Arrows Capital puts the interconnected nature of the industry on display, with lenders ranging from some of the biggest digital asset firms to the wife of co-founder Kyle Davies.
https://www.straitstimes.com/business/banking/spore-based-crypto-hedge-fund-three-arrows-owes-genesis-parent-17-billion

Singapore power price spikes again in further sign of volatility
Singapore’s wholesale electricity price surged for the second time in a week, a sign of further volatility in the market amid a global power crunch. The cost of 1 MWh jumped to more than S$4,200 for 3 hours on Sunday (Jul 17) night, the longest period of such high prices this year.
https://www.businesstimes.com.sg/energy-commodities/singapore-power-price-spikes-again-in-further-sign-of-volatility
https://www.straitstimes.com/business/heightened-fears-over-gas-supply-in-europe-raise-lng-prices-further-spore-electricity-set-to-rise

All households in S’pore to get a set of 10 ART kits in their letterboxes from today
Singapore – All households in Singapore will each get a set of 10 antigen rapid test (ART) kits in their letterboxes as the third round of distribution starts on Monday (July 18). The public can check the delivery status of the kits by using the SingPost mobile app, which can be downloaded from the Apple Store or Google Play.
https://www.straitstimes.com/singapore/more-than-15m-households-to-get-a-set-of-10-art-kits-in-their-letterbox-from-today