DAILY NEWS

Daily News – 9, 10, 11 & 12 July 2022 (Sat, Sun Mon & Tue)

SINGAPORE REAL ESTATE

Rising interest rates and private home prices could push some out of market: IREUS
A combination of rising interest rates and property prices is bound to impact buyer affordability – the question is where that tipping point lies. A recent analysis has shown that buyers are still able to afford private homes despite recent rate hikes, but depending on the loan tenure, they may start getting priced out of the market if mortgage rates reach 3.5 per cent and beyond.
https://www.businesstimes.com.sg/real-estate/rising-interest-rates-and-private-home-prices-could-push-some-out-of-market-ireus

Rising interest rates may not stop home prices from rising
The effects of property cooling measures introduced in mid-December 2021 appear to be short-lived. The Urban Redevelopment Authority’s flash estimate of private home prices for Q2 2022 showed prices up 3.2 per cent quarter on quarter, versus the 0.7 per cent rise in Q1 2022.
https://www.businesstimes.com.sg/opinion/rising-interest-rates-may-not-stop-home-prices-from-rising

Rising rates hit prices worldwide but S’pore property market expected to be resilient
Singapore – Moves by central banks around the world to raise interest rates to tame inflation are already fuelling sharp downturns in housing markets as buyers turn cautious in the wake of costlier mortgages.
https://www.straitstimes.com/business/economy/what-still-lies-ahead-for-2022-rising-rates-hit-prices-worldwide-but-spore-market-expected-to-be-resilient

How and where to look for ‘cheaper’ home loans
Singapore – Pay less now but risk paying more later. Or pay a higher fixed rate for the next two to three years and enjoy peace of mind. This is the choice facing home buyers and owners now as they grapple with rate hikes expected to continue following United States Federal Reserve moves to increase borrowing costs to stem rising inflation.
https://www.straitstimes.com/business/invest/how-and-where-to-look-for-cheaper-home-loans

Mortgagee sales may not spike just yet, with robust Singapore rentals a cushion for rate shocks
The property market may not see a surge in mortgagee sales just yet, as strong residential rentals could cushion interest rate shocks for owners, say agencies. “The rental market is still very strong, the impact may only be felt from next year,” said Edmund Tie’s head of auction Joy Tan.
https://www.businesstimes.com.sg/real-estate/mortgagee-sales-may-not-spike-just-yet-with-robust-singapore-rentals-a-cushion-for-rate

4 money tips to note when mortgage rates rise
Singapore – All good things must come to an end and that is the case for cheap money in the form of super-low mortgage rates that left many home buyers with a bit more cash in the kitty to spend every month.
https://www.straitstimes.com/business/invest/4-money-tips-to-note-when-mortgage-rates-rise

Bedok Point closure a lesson that malls in suburban clusters need good access and retailers: Experts
Singapore – Opened to much fanfare in 2011 and a seven-minute walk from Bedok MRT station and interchange, Bedok Point was to be a highlight for residents, with its slew of food and beverage outlets.
https://www.straitstimes.com/singapore/consumer/bedok-point-closure-a-lesson-that-malls-in-suburban-clusters-need-good-access-and-retailers-experts

Data centre rents in S’pore set to keep rising amid high demand, limited supply
Singapore – The amount firms pay for data centre space is expected to keep rising in Singapore due to strong demand and limited availability, according to a report by real estate consultancy Colliers.
https://www.straitstimes.com/business/data-centre-rent-pushed-higher-by-demand-from-network-services-business-digitalisation

Hafary to acquire 11 shophouses on Lavender Street for S$71.28m
Mainboard-listed Hafary Holdings announced in a board filing on Tuesday (Jul 12) that it has exercised the option to purchase a property at 161 Lavender Street at the price of S$71.28 million, through its wholly-owned subsidiary Hafary Flagship Store.
https://www.businesstimes.com.sg/companies-markets/hafary-to-acquire-11-shophouses-on-lavender-street-for-s7128m
https://www.straitstimes.com/business/companies-markets/hafary-to-buy-11-shophouses-on-lavender-street-at-7128m-for-new-flagship-store

HDB to retain at least 2ha of Pang Sua Woodland, which will be developed for housing
Singapore – Plans for a new housing estate to be built in Choa Chu Kang have been changed to accommodate at least 2ha of existing greenery, following an environmental study and public feedback.
https://www.straitstimes.com/singapore/housing/hdb-to-retain-at-least-2ha-of-existing-pang-sua-woodland-which-will-be-developed-for-housing

3 Chai Chee school campuses to be demolished for housing
Singapore – Three school campuses in Chai Chee, near Bedok, are set to make way for new homes. The Housing Board on June 1 called a tender for demolitions in Chai Chee Lane, which has three school campuses sitting on land zoned for residential use.
https://www.straitstimes.com/singapore/housing/3-chai-chee-school-campuses-to-be-demolished-for-housing

Sers no longer viewed as a guaranteed ‘windfall’ after Ang Mo Kio episode
Singapore – Being picked for the Selective En bloc Redevelopment Scheme (Sers) used to be great news for Housing Board dwellers, akin to striking the lottery or gaining a windfall. This was because Sers owners could essentially upgrade from an ageing flat to a new flat with a fresh 99-year lease at little to no extra cost.
https://www.straitstimes.com/singapore/housing/on-the-ground-sers-no-longer-viewed-as-a-guaranteed-windfall-after-ang-mo-kio-episode

SINGAPORE ECONOMY

Countries need appropriate strategies to tackle challenges caused by Covid-19 pandemic: Iswaran
Singapore – Countries will need to think of appropriate economic and policy strategies to tackle the unprecedented confluence of challenges brought about by the Covid-19 pandemic, said Minister-in-charge of Trade Relations S. Iswaran on Saturday (July 9).
https://www.straitstimes.com/business/economy/countries-need-appropriate-strategies-to-tackle-challenges-caused-by-covid-19-pandemic-iswaran

Inflation may dampen Singapore shoppers’ sentiment, but no major hit to growth: analysts
Rising prices may prompt Singapore households to cut back on spending, but the overall impact on private consumption and the economy is likely to be limited, analysts told The Business Times. That’s as some watchers remain optimistic about consumer demand from inbound tourists, and note the outward-oriented nature of Singapore’s trade-reliant economy.
https://www.businesstimes.com.sg/government-economy/inflation-may-dampen-singapore-shoppers-sentiment-but-no-major-hit-to-growth
https://www.straitstimes.com/business/economy/inflation-rising-but-spore-economy-not-at-risk-of-overheating-experts

France’s Soitec doubles down on Singapore with more investment dollars, job creation
French chipmaker Soitec is raising its game in Singapore, just a year after it announced a multi-million dollar upgrade for the Pasir Ris factory to ramp up output. The company plans to plough an additional 400 million euros (S$570 million) into an extension for the factory that will double its size.
https://www.businesstimes.com.sg/government-economy/frances-soitec-doubles-down-on-singapore-with-more-investment-dollars-job

More economic pain to come? What’s still ahead for 2022
The first half of the year has been challenging for the global economy. The war in Ukraine, unusually high inflation levels, slower economic growth, rising interest rates and post-pandemic reopening pains have led to uncertainty on various fronts, including in Singapore.
https://www.straitstimes.com/business/economy/what-still-lies-ahead-for-2022

The global tax revolution for tech giants is delayed to 2024
A global taxation deal heralded as a “revolution” for the profits of multinational tech firms has run into a thicket of technical difficulties that will delay implementation to 2024 at the earliest. Work at the Organization for Economic Co-operation and Development (OECD) on a legal instrument to change tax treaties the world over has proved tougher than foreseen when negotiators initially set next year as a target for the new system to come into force.
https://www.businesstimes.com.sg/government-economy/the-global-tax-revolution-for-tech-giants-is-delayed-to-2024
https://www.straitstimes.com/world/oecd-sees-global-corporate-tax-overhaul-on-course-for-2024

S’pore businesses tapping tech to expand overseas: Survey
Singapore – Plenty of local businesses plan to expand into new markets over the next 12 months, with most of them investing in digital technologies to do so, noted a new survey.
https://www.straitstimes.com/business/companies-markets/spore-businesses-tapping-tech-to-expand-overseas-survey

Rise in number of S’pore businesses that closed in first half of the year
Singapore – Despite the worst of the Covid-19 pandemic seemingly over, more businesses decided to throw in the towel this year. A total of 24,503 business entities ceased operations in the first half of this year, a 3 per cent increase from the same period last year, the Accounting and Corporate Regulatory Authority records showed.
https://www.straitstimes.com/business/companies-markets/more-business-closures-in-first-half-of-2022-compared-with-last-year-fewer-new-firms-opening

What you should know about recessions
(Nytimes) – Chaotic stock markets, sky-high interest rates and the pain of inflation have left one question at the top of people’s minds: Are we in a recession? Probably not yet, but there are signs of economic weakness emerging.
https://www.straitstimes.com/business/invest/what-you-should-know-aboutrecessions

COMPANIES’ BRIEF

Securities Industry Council requires competing bids for Hwa Hong to be confirmed by Jul 25
Hwa Hong’s directors on Friday (Jul 8) said that the Securities Industry Council (SIC) has laid down a Jul 25 deadline for any potential competing offerors to announce a firm intention to make an offer for the company.
https://www.businesstimes.com.sg/companies-markets/securities-industry-council-requires-competing-bids-for-hwa-hong-to-be-confirmed

Pan-United sees new opportunities in sustainable concrete
As Singapore’s largest ready-mix concrete provider, with a market share of about 40 per cent, Pan-United Corporation sees plenty of potential in driving the adoption of sustainable concrete.
https://www.businesstimes.com.sg/companies-markets/pan-united-sees-new-opportunities-in-sustainable-concrete

SPH Reit kicks off reporting calendar with marked recovery in tenant sales
Thirteen Singapore real estate investment trusts (S-Reits) have announced dates of their upcoming earnings releases or business updates, with SPH Reit kicking off the current reporting season for the sector with the release of its third-quarter FY2022 business update (ended May 31, 2022) on Jul 7, 2022.
https://www.businesstimes.com.sg/companies-markets/sph-reit-kicks-off-reporting-calendar-with-marked-recovery-in-tenant-sales

VIEWS, REVIEWS, FORUM AND OTHERS

Getting hybrid work right in Singapore
The world of work has undergone tremendous shifts in the past two years. The pandemic altered everything from our outlook towards work, to how we work, and where we work. No one knew what was coming, and what was to change forever.
https://www.businesstimes.com.sg/opinion/getting-hybrid-work-right-in-singapore

Boss, start warming up for flexi-work guidelines in 2024
Singapore – Singapore will have its own manual on flexible work in two years. You could call it a book of rules governing the conduct of bosses and workers in arrangements on working any time, anywhere, in many formats. Unlike some countries, however, these rules will not be law.
https://www.straitstimes.com/business/boss-start-warming-up-for-flexi-work-guidelines-in-2024

Banks should bear all phishing scam losses
Some years ago, I went to one of Singapore’s local banks to remit money overseas. A rather harried-looking employee at the branch told me it would be far easier and cheaper if I did the transaction online.
https://www.businesstimes.com.sg/opinion/banks-should-bear-all-phishing-scam-losses

Efficient data management should be key pillar of corporate sustainability agendas
Sustainability is an increasingly important consideration for organisations, as they seek to generate business value by incorporating environmental, social, governance (ESG) factors into decision-making.
https://www.businesstimes.com.sg/companies-markets/efficient-data-management-should-be-key-pillar-of-corporate-sustainability-agendas

Real world assets will be crypto’s anchor as bottom falls out of speculative leveraging
In the past two months since its spectacular collapse, TerraUSD’s deep dive continues to send ripples through the crypto ecosystem. Coupled with broader macroeconomic headwinds in the form of persistent inflation and relentless interest rate hikes, an overwhelming fear has impelled retail and institutional investors to prioritise liquidity and increase cash holdings.
https://www.businesstimes.com.sg/wealth-investing/real-world-assets-will-be-cryptos-anchor-as-bottom-falls-out-of-speculative

Unlocking the ESG investment potential in emerging markets
Sustainable investing is more than about seeking companies with impeccable environmental, social and governance (ESG) profiles. It is also about uncovering companies that are improving their ESG footprints – and their disclosures go a long way towards signalling and evidencing such progress. Yet, across emerging markets (EMs), corporate ESG disclosures are uneven and broadly lag those in developed markets.
https://www.businesstimes.com.sg/companies-markets/unlocking-the-esg-investment-potential-in-emerging-markets

Investing in fixed deposits: Shop around to get the biggest bang for your buck
This fortnightly column addresses readers’ queries on investing issues. This week, we look at rising interest rates.
https://www.straitstimes.com/business/invest/shop-around-to-get-the-biggest-bang-for-your-buck

4th monkeypox case confirmed in Singapore
Another case of monkeypox has been confirmed in the Republic, bringing the total number of cases detected since June to four, said the Ministry of Health on Friday (July 8). Also an imported infection, the patient is a 30 year-old male India national who lives in Singapore and recently returned from Germany.
https://www.businesstimes.com.sg/government-economy/4th-monkeypox-case-confirmed-in-singapore
https://www.straitstimes.com/singapore/health/fourth-monkeypox-case-confirmed-in-singapore

Singaporeans advised to defer all non-essential travel to Sri Lanka
Singapore: Singapore’s Ministry of Foreign Affairs (MFA) on Sunday (Jul 10) advised Singaporeans to defer all non-essential travel to Sri Lanka, a day after protesters stormed the presidential palace and forced President Gotabaya Rajapaksa to announce his resignation.
https://www.channelnewsasia.com/singapore/sri-lanka-protests-gotabaya-rajapaksa-singaporeans-advised-avoid-non-essential-travel-2800641
https://www.straitstimes.com/singapore/defer-all-non-essential-travel-to-sri-lanka-mfa

UPDATE ON COVID-19 (CORONAVIRUS DISEASE 2019) SITUATION

Singapore should be able to ride Covid-19 wave without tightening curbs, with hospitals holding up: DPM Wong|
Singapore should be able to tide over the current wave of Covid-19 infections without tightening restrictions, said Deputy Prime Minister Lawrence Wong on Sunday (Jul 10). He noted that hospitals are still holding up as cases start to peak.
https://www.businesstimes.com.sg/government-economy/singapore-should-be-able-to-ride-covid-19-wave-without-tightening-curbs-with
https://www.straitstimes.com/singapore/community/spore-should-be-able-to-ride-covid-19-wave-without-tightening-curbs-with-hospitals-holding-up-dpm-wong

Covid-19 cases in Singapore likely to peak in a week or sooner: Experts
Singapore’s Covid-19 cases are likely to peak in a week or even sooner, experts here said, as the nation weathers through yet another infection curve. The week-on-week infection ratio — which refers to the ratio of community cases for the past week, over the week before — is falling.
https://www.businesstimes.com.sg/government-economy/covid-19-cases-in-singapore-likely-to-peak-in-a-week-or-sooner-experts
https://www.straitstimes.com/singapore/covid-19-cases-in-singapore-likely-to-peak-in-a-week-or-sooner-experts

Singapore ready to secure booster vaccines for Omicron subvariants
Singapore – Singapore is ready to bring in booster vaccines for Omicron subvariants that are fast becoming the dominant variants here should they be approved, said the Ministry of Health (MOH).
https://www.straitstimes.com/singapore/arrangements-in-place-for-spore-to-secure-booster-vaccines-for-omicron-subvariants

askST: Should you wait for new Covid-19 vaccines before taking your booster?
Singapore – Singapore is in the midst of a Covid-19 wave, with the Omicron sub-variants BA.4 and BA.5 accounting for about half of the total number of cases here as at last Tuesday.
https://www.straitstimes.com/singapore/askst-should-you-wait-for-new-covid-19-vaccines-before-taking-your-booster

*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