KL Extends IDR Incentives To Developers

Source : The Business Times, October 10, 2007

PM says 'customised incentive packages' for bigger investors with specific needs can be considered

THE first section of Malaysia's planned Iskandar Development Region, across the straits from Singapore, was yesterday identified for special incentives for approved companies.

Mr Abdullah: Package of incentives includes 10-year income tax exemptions for certain qualifying activities

It is called Node 1 and covers 96 million sq ft - 8.9 sq km - of greenfield waterfront land between the Johor state new administrative centre and the second crossing to Singapore.

The IDR-status companies for Node 1 must operate in six specific service sectors, as announced in March: creative industries, education, financial advisory & consulting, healthcare, logistics, and tourism.

The first package of incentives, which includes 10-year income tax exemptions for certain qualifying activities, will be extended to approved developers and approved development companies as well as IDR-status companies.

Approved developers are those acquiring sub-lease rights to lands within Node 1, while approved development managers are those sanctioned by the developers. In effect, these would be companies which acquire some interest in the building or management of components within the node.

The first node which has already attracted some Middle Eastern investment, is envisaged as a comprehensive development including leisure, residential, financial and high-end industrial components.

Yesterday, Prime Minister Abdullah Ahmad Badawi indicated that the government was also prepared to consider 'customised incentive packages' for bigger investors with specific needs.

Mr Abdullah told a press conference in Putrajaya after he co-chaired the third Iskandar Regional Development Authority board meeting: 'If it is important to do that, we certainly can (consider). The point is we can have discussions with them to decide.'

Malaysia is actively promoting the IDR - which is intended eventually to cover an area about three times the size of Singapore - as a new economic zone for the country and surrounding region.

Some RM4.3 billion (S$1.8 billion) would be injected by the government into infrastructure development for Node 1, and with an estimated RM40 billion required in the first five years alone, huge levels of private investment are needed to drive the plan.

In August, the IDR received its first major boost when four Middle Eastern groups - Aldar Properties, Mudabala Development Company, Kuwait Finance House and Millennium Development International Company - committed about RM4.1 billion to develop the whole area of Node 1 into various themed zones that would include lifestyle, cultural and financial districts.

Don't Take Boom Times For Granted, IMF Says

Source : The Business Times, October 10, 2007

WASHINGTON - The global economy is enjoying its strongest growth since the early 1970s and the benefits have been shared widely, but policy-makers should not take the good times for granted, the International Monetary Fund said.

The rapid growth of global trade and access to financing have helped smooth out volatility, prolonging expansions and shortening recessions, but policy needs to remain flexible to cope with new risks, the IMF said in initial chapters of its World Economic Outlook, due out in full on Oct 17.

Tightening credit terms spawned by the sputtering US housing market highlight just how tightly global financial markets are connected - and how closely policy-makers need to watch for signs of stress, the IMF said.

'Although the business cycle has changed for the better, policy-makers must remember that it has not disappeared,' researchers Martin Sommer and Nikola Spatafora wrote in a chapter on the changing dynamics of the global business cycle.

The researchers warned against 'overconfidence in the ability of the current policy framework to deliver stability indefinitely' and noted that low volatility does not rule out occasional recessions.

'The task of maintaining expansions requires policy-makers to adapt because the process of trade and financial globalisation may have generated new risks and vulnerabilities,' the researchers wrote.

'For example, the losses associated with highly leveraged investments in the US sub-prime mortgage market have created distress in the banking sector in many advanced economies, raising concerns about a possible credit crunch.' -- REUTERS

Global Banks Dominate Asia Corporate Business: Study

Source : The Business Times, October 10, 2007

SYDNEY - International banks dominate corporate and institutional banking in Asia with their market share growing to almost 70 per cent this year, according to a study.

British banks HSBC Holdings and Standard Chartered Bank had the biggest slice of Asian business with market share of 18.4 per cent and 18.3 per cent respectively in May this year, Sydney-based banking research firm East & Partners said.

HSBC had a market share of 18.1 per cent in May last year and Standard Chartered 17.3 per cent.

US banks also fared well with Citigroup third with 15 per cent, steady on a year ago, and JPMorgan Chase & Co fifth with 7.1 per cent, up from 6.6 per cent a year ago.

The only highly-ranked Asian bank was Singapore-based DBS which was fourth with 9.4 per cent, down from 9.5 per cent a year earlier.

'Corporate Asia is clearly looking for banks that are large enough to cater for both Asian and international expansion.

International banks can therefore provide for more corporates in countries across a fast-growing Asia,' East & Partners financial markets analyst Peter Drennan said.

The study was based on interviews with top-100 countries by revenue in ten countries across Asia. -- REUTERS

S'pore's Q3 GDP Grows 6.4%

Source : The Business Times, October 10, 2007

Singapore's economy grew at an annualised, seasonally-adjusted rate of 6.4 per cent in the third quarter, slightly below market expectations, advance Government data showed on Wednesday.

The advance estimate, based largely on data from July and August, gives an early indication of the economy's performance in the July to September period.

Compared with a year earlier, gross domestic product was 9.4 per cent higher in the third quarter, amid a fast-growing financial sector and a sharp rise in construction activity prompted by a property boom. That figure was broadly in line with expectations of 9.6 per cent growth. -- REUTERS

S'pore Tightens Monetary Policy Slightly

Source : The Business Times, October 10, 2007

Singapore's central bank said on Wednesday it would maintain its policy of a 'gradual and modest appreciation' in the Singapore dollar, a decision widely expected by the market, but said it would slightly increase the slope of its policy band.

'MAS will continue with the policy of a modest and gradual appreciation of the S$NEER policy band in the period ahead.

However, we will increase slightly the slope of the S$NEER (Nominal Effective Exchange Rate ) policy band,' the Monetary Authority of Singapore (MAS) said in a twice-yearly monetary policy statement.

The move effectively lets the Singapore dollar appreciate further against the US dollar. The Singapore dollar hit a 10-year high on the news.

All economists polled by Reuters had expected the MAS to maintain its three-and-a-half-year-old moderately tight monetary policy to keep a lid on inflation as asset prices spiral higher in a booming economy and after a sales tax increase in July.

However, some economists polled last week believed the central bank's meeting in April next year could bring a policy change, citing concerns over inflation and the possibility of the economy overheating.

Singapore's gross domestic product expanded at an annualised rate of 14.4 per cent in the second quarter, its fastest growth in two years.

The MAS said it expected inflation in a 1.5 to 2 per cent range in 2007, up from its previous forecast of 1 to 2 per cent.

The annual inflation rate reached 2.9 per cent in August, its highest in 12 years.

Singapore's central bank conducts policy through the exchange rate, steering the Singapore dollar within an undisclosed band against a trade-weighted basket of currencies, rather than by adjusting interest rates like most central banks. -- REUTERS

MAS MONETARY POLICY STATEMENT, 10 Oct 2007

INTRODUCTION
1. In April this year, MAS reaffirmed the policy of a modest and gradual appreciation of the S$NEER policy band which has been in place since April 2004. This policy stance has contributed to low and stable inflation amidst the robust economic growth over the past few years.

















2. Since the last policy review, the S$NEER has eased from the upper end of the policy band, although in recent weeks it has edged up following the renewed weakness of the US$. (Chart 1) Despite the turbulence in global financial markets arising from the US subprime mortgage problems, financial markets in Singapore, in particular the money markets, have continued to function in an orderly manner.

3. The three-month domestic interbank interest rate fell from 3.5% at end-February to 2.5% in June. While the disruption of US and European money markets in early August had led to a temporary spike in the domestic three-month rate to about 3%, it has since eased to around 2.5%.


OUTLOOK FOR 2007 AND 2008

4. The Singapore economy has performed better than expected thus far in 2007, with robust growth recorded across most industries. Notably, the non-IT industries and asset market-related activities – that is, those associated with the property market as well as the financial advisory and capital markets – contributed significantly to overall GDP growth in the first half of the year. In Q3, Advance Estimates released by the Ministry of Trade and Industry pointed to a moderation in economic momentum, largely on account of a pullback in some asset market-related activities. Nonetheless, financial markets have rebounded recently and underlying economic conditions remain supportive. GDP growth is therefore on track to come in at the upper end of the 7-8% forecast range this year, up from the 4.5-6.5% forecast during the April review.

5. Looking ahead, growth prospects of the US economy have weakened in line with the ongoing correction in the housing market and tighter credit conditions. Other economies are also likely to see some softening in the near term. However, the global economy is expected to remain resilient, particularly in Asia, where domestic demand and regional trade should continue to be firm. In the Singapore economy, growth will be led by non-IT manufacturing, construction and business services, which have built up a strong momentum and are more dependent on regional and domestic sources of demand as well as developments in specific product markets.

6. At this stage, our assessment is that the Singapore economy is likely to expand at a slower rate in 2008 than in the recent past, reflecting weaker global economic growth. Singapore’s GDP growth rate is expected to come in within its potential of 4-6% next year.

7. CPI inflation in Singapore came in within expectations at 0.8% in the first half of this year, compared with 1% in 2006. Inflationary pressures have since picked up amidst the buoyant domestic economic conditions and the recent rise in global oil and food prices. Wage and rental increases have strengthened, and the unemployment rate has fallen to a six-year low of 2.3% in June. Inflation rose to an average of 2.8% in July-August, with about half the increase attributed to the one-off impact of the GST hike. The higher inflation also reflected stronger economic conditions and the pass-through of rising business costs to retail prices. As a result, CPI inflation is now projected to come in at 1.5-2% for 2007, from the 0.5-1.5% range expected at the time of the last policy review.

8. Domestic price pressures are expected to persist due to heightened supply constraints, while externally, oil, food, and other commodity prices will remain firm into next year. Further, rising residential property prices and rentals will lead to a more significant increase in CPI accommodation costs. For the first half of 2008, headline CPI inflation is projected to rise to about 3.5% on a year-on-year basis on account of the GST hike, as well as the base effects of lower energy and car prices in H1 2007. In the second half of the year, inflation should ease, and come in at 2-3% for 2008 as a whole.1 The MAS underlying inflation measure, which excludes accommodation and private road transport costs, is projected at 1.5-2.5% in 2008.


MONETARY POLICY

9. The Singapore economy has expanded at a rapid pace in 2007, underpinned by robust growth in non-IT manufacturing and asset market-related activities in the first half of the year. Going forward, while the economy is expected to moderate to a more sustainable pace, inflationary pressures stemming from external sources, as well as domestic conditions including a tight labour market and rising rental costs, will persist.

10. Against this backdrop, MAS will continue with the policy of a modest and gradual appreciation of the S$NEER policy band in the period ahead. However, we will increase slightly the slope of the S$NEER policy band. There will be no re-centring of the policy band, or any change in its width. In our assessment, this policy stance will remain supportive of economic growth while capping inflationary pressures and ensuring price stability over the medium term.

* The GST increase is expected to have a one-off impact of around 0.7% point on the annual inflation rate in 2007 and 2008.

S'pore Dollar Hits 10-Year High On C. Bank Move

Source : The Business Times, October 10, 2007

The Singapore dollar hit a fresh 10-year high on Wednesday as investors sold the US dollar after the central bank surprised markets with its tighter policy stance.

The Monetary Authority of Singapore (MAS) in its biannual review said that it would maintain its policy of a 'gradual and modest appreciation' in the Singapore dollar but slightly increase the slope of its trade-weighted band.

The currency rose as high as 1.4625 in early trade, its strongest level since August 1997.

The central bank conducts monetary policy by steering the Singapore dollar in a band against a trade-weighted basket of currencies rather than setting an interest rate as most central banks do.

'We can say it is a tightening of the monetary policy. Inflation pressure is really building up very quickly in the economy,' said Irvin Seah, an economist with DBS Bank.

Traders expect the currency to strengthen further, but they cautioned that the central bank might intervene if the currency rose too fast.

'Initially, there was some selling of the US dollar down to 1.4625, but the 1.4650 level was well supported,' said a trader in Singapore. 'So we are stuck in the range of 1.4650 and 1.4680. I think the 1.4630 level will be a more crucial support (for the US dollar),' she said.

The currency has gained about 2.8 per cent since Sept 18, when the Federal Reserve slashed its key interest rate by 50 basis points and sparked a rally in most Asian currencies. -- REUTERS

A Free Hand For CPF To Create Wealth For Members

Source : The Business Times, October 10, 2007

MANPOWER Minister Ng Eng Hen is right that we should not malign the CPF as it has done a sterling job giving generations of members affordable housing and health care since its inception.

But, paradoxically, what is riling members in the current CPF debate is that, compared with the stellar returns of 18 per cent and 9.5 per cent achieved by the government's investment vehicles such as Temasek and GIC, their CPF return is woefully low. They are also not enamoured of the proposed compulsory annuity plan.

In 2006 the CPF paid 2.5 per cent for the Ordinary Account when inflation was running at one per cent. With a real return of only 1.5 per cent, it will take a stunning 48 years for their savings to double!

Even if the government increases the interest for the first $60,000 in the combined account to 3.5 per cent it will not make a significant difference as the forecast inflation at the upper end is 1.5 per cent.

This is the conundrum members face as low investment yields may seal their financial fate when life expectancy rises.

The government's reply is that the CPF rate is low because it is risk-free and guaranteed by the government.

But critics can argue that it makes no economic sense to shackle the CPF Board to a rigid, risk-free investment strategy and, at the same time, wax lyrical over the performances of Temasek and GIC which are not barred from taking measured investment risks with Singapore's foreign reserves.

The California Public Employees' Retirement System manages about US$246 billion for 1.5 million members and it has chalked up a respectable average return of 15.9 per cent a year in the last four years.

Even China's nascent US$53.3 billion Social Security Fund has announced a profit of 15.2 per cent for the first half of 2007.

And for the year ended March 31, 2007, the net profit of Singapore's central bank more than tripled to S$3.08 billion due to higher interest income and investment gains.

In my opinion, the CPF should have a free hand to exercise its fiduciary duties to diversify and grow into a world-class, multi-billion dollar Sovereign Wealth Fund which can also invest directly in Temasek or GIC to earn a market-competitive yield and create wealth for members when they retire.

Free CPF Board To Take Risks

Source : TODAY, Wednesday, October 10, 2007

Invest members’ funds for better returns

Letter from TAN KENG TAT


















MANPOWER Minister Ng Eng Hen is right in that we should not malign the Central Provident Fund (CPF) as it has done a sterling job giving generations of members affordable housing and healthcare since its inception.

But, paradoxically, what is roiling members in the current CPF debate is that, compared to the stellar returns of 18 per cent and 9.5 per cent achieved by Government’s investment vehicles such as Temasek Holdings and the Government of Singapore Investment Corporation (GIC), their CPF return is woefully low. They are also not enamoured of the proposed compulsory annuity plan.

Last year, the CPF paid 2.5 per cent on the Ordinary Account when inflation was running at 1 per cent. Going by the investors’ rule of 72, with a real return of only 1.5 per cent, it will take as long as 48 years for their savings to double!

Even if the Government increases the interest on the first $60,000 in the combined account to 3.5 per cent, it will not make a significant difference, as the forecast inflation rate is 1.5 per cent at the upper end.

This is the conundrum that members face: Low investment yields may seal their financial fate when life expectancy rises.

The Government’s reply is that the CPF rate is low because it is risk-free and guaranteed by the Government.

But critics can argue that it makes no economic sense to shackle the CPF Board to a rigid, risk-free investment strategy and, at the same time, wax lyrical over the performances of Temasek and GIC, which are not barred from taking measured investment risks with Singapore’s foreign reserves.

The California Public Employees’ Retirement System manages about US$246 billion ($362 billion) for 1.5 million members and it has chalked up a respectable average return of 15.9 per cent a year in the past four years.

Even China’s nascent US$53.3-billion Social Security Fund has announced a profit of 15.2 per cent for the first half of this year.

And for the financial year ending March 31 this year, Singapore’s central bank’s net profits more than tripled to $3.846 billion, due to higher interest income and investment gains.

The CPF should have a free hand to exercise its fiduciary duties to diversify and grow into a world-class, multi-billiondollar sovereign-wealth fund that can also invest directly in Temasek or in GIC to earn a market-competitive yield and create wealth for its members when they retire.

Reality TV, Made In Asia

Source : TODAY, Wednesday, October 10, 2007

S'pore will be backdrop as The Apprentice producer ties up with Sentosa IR










The Apprentice, Singapore-style? This may happen as soon as next year.

Genting International and reality-television supremo Mark Burnett's production company Mark Burnett International have come together to produce and distribute reality television series and game shows for Asia.

Called Mark Burnett Productions Asia (MBPA), the joint venture will have its base in Genting International's Resorts World at Sentosa (RWS) and will use its facilities and resort attractions for its productions.

RWS, opening in 2010, will house Universal Studios, the world's largest oceanarium Marine Life Park, six theme hotels, showrooms and film-production facilities. The resort will be an exciting backdrop and the fact of a reality TV show will draw many more visitors to the resort when it opens, said Genting International executive chairman Lim Kok Thay.

The two partners have invested up to US$20 million ($29.5 million) in a move that Mr Burnett says is a "first step" in a new wave of Asian TV programming. Plans also include live shows at the resort itself.

Said Mr Burnett during a teleconference with local media yesterday: "In Las Vegas, it's common to have a live version of a TV game show in the casinos. It's a big goal of mine to … be using (game show) content — particularly with gaming elements — within a resort, so it's more than just a TV show."

On his tie-up with Genting, he said: "I've been dreaming about this for a long time. It would be ridiculous of me to do something in Asia alone, as it's such a big important market."

RWS chief executive officer Tan Hee Teck described it as a "complementary relationship". He added: "Mark Burnett brings expertise and branding and we have a strong presence, a great understanding of the Asian market and the facilities."

The two partners were brought together at a meeting in Los Angeles in June by the Economic Development Board, and EDB assistant managing director Manohar Khiatani is delighted with the resulting collaboration.

It underscores "the attractiveness of Singapore as a location where leading media content owners create and manage their intellectual property assets", he said.

Some popular shows Mr Burnett has produced include The Apprentice, Survivor and The Amazing Race; and MBPA has an exclusive licence to produce shows on multiple media platforms — broadcast TV, the Internet and mobile TV — for Asia, excluding Japan, and the Middle East.

While Mr Burnett is keeping mum on the programmes MBPA will produce ("I've learnt my lesson from speaking too much to the press," he joked), he said they won't only be "Asian versions of American shows".

"I believe in the global village," he said. "There's so much content here. We can produce uniquely-Asian shows that can also be used for American or European markets."

MBPA expects to begin production on their first show next year, although, said Mr Burnett, it may not necessarily be produced in Singapore.

"(We'd like) the first one to be in Singapore, but this is a business, so we'll consider all options to see if it makes rational business sense," he added.

Economy Isn’t Overheating, Says PM

Source : TODAY, Wednesday, October 10, 2007

















WITH home prices at their highest in a decade, office rentals at record levels and companies hiring at breakneck speed, the talk is that the Singapore economy is overheating.

Yesterday, Prime Minister Lee Hsien Loong disagreed. "I don't think the economy as a whole is overheating," he told Singapore and international media in Budapest.

"This year, we expect 7-to-8-per-cent growth. It's a good figure, but at the same time, inflation is well under control," he said on the second day of his first official visit to Hungary.

As interim office space is made available, he expects office rentals to level out.

"In the short term, there is a problem because so many businesses want to set up in Singapore," he said. "In the medium term, we will have enough supply of office space."

His comments came just hours before the Ministry of Trade and Industry was to release flash estimates for growth in the third quarter. Economists expect a robust expansion of 9 to 9.6 per cent from a year ago.

The Monetary Authority of Singapore will also issue its biannual monetary policy statement today and it is expected to let the Singapore dollar continue its modest and gradual appreciation, which will cool inflation.

With inflation at a 12-year high, economists from Morgan Stanley and HSBC Holdings had last week questioned if signs of overheating were beginning to show.

At yesterday's press conference in the Hungarian capital, meant as a platform to discuss two new agreements between Singapore and Hungary, the foreign media pressed Mr Lee not only on economic issues but also the situation in Myanmar.

Describing the situation in Myanmar as "serious", Mr Lee said: "What is necessary is to find reconciliation and an agreement among the parties in Myanmar on the way forward.

"There's no easy way forward. It's not simply a matter of regime change. If you look at Iraq, you know that regime change is a slogan but may not be a policy."

He also rebutted accusations that Singapore — which currently holds the Association of South-east Nations (Asean) chair — was a money-laundering centre for members of Myanmar's military regime.

Earlier in the day, Mr Lee had an hour-long, closed-door meeting with his Hungarian counterpart Ferenc Gyurcsany, who last visited Singapore in 2005.

Pointing to the potential for partnerships in areas such as research and education to flourish, Mr Lee said: "Hungary is a gateway to Central and Eastern Europe, and Singapore is a gateway to the whole of Asia. Through Singapore, you can work with other Asean countries ... Vietnam, Malaysia, Indonesia ... China, India, and link up with the transformation of Asia that is going to change the world."

The two countries signed two agreements — one to promote economic cooperation and another which involves Singapore's Agency for Science, Technology and Research, or A*Star, to promote cooperation in science, engineering and biomedical research.

Also in Budapest with Mr Lee is a 30-member business delegation from Singapore, which he said was "very eager" to explore opportunities in the central European nation, which is currently Singapore's largest trading partner in Central Europe, with trade volume worth $1.36 billion last year.

"I hope that Hungarian firms, too, will similarly take interest in Singapore," he said.

The Greening Of HDB Estates

Source : TODAY, Wednesday, October 10, 2007

Punggol and the Dawson estate in Queenstown are being rejuvenated with more environmentally-friendly technology. These estates and Yishun are the first towns to be overhauled under a masterplan to transform HDB estates in the next 20 to 30 years.

The green technologies to be used in Punggol and Dawson estates include energy-saving LED (light-emitting diode) lights and environmentally sustainable wall partitions.

The HDB also wants to use such technology in its new projects, such as the Treelodge@Punggol.

HDB building technology director Yap Tiem Yeew, who spoke to Channel NewsAsia at the HDB Awards 2007, said: “Some of the technologies we’ve introduced into recent projects will also be introduced into new towns, for example, the washbasin that comes with the pedestal banister, the LED lights, the greenery and the orientation of the building.”

A north-south orientation avoids direct sunlight. Hence, air conditioning and energy use will be reduced.

Twelve projects were recognised for quality, design and construction safety. HDB also launched a book on the green initiatives to help developers build sustainable buildings.

Funeral Parlour In My Estate? I’m Dead Set Against It

Source : TODAY, Wednesday, October 10, 2007

Letter from SYED AHMAD

I REFER to the report “A funeral hub, Sir?” (Oct 8).

I have been a resident of Sin Ming Avenue for five years and have grown to love the area for its serene environment. I am already used to having a temple nearby and the traffic congestion that residents occasionally have to endure.

However, I do not understand why the Urban Redevelopment Authority (URA) is considering building another funeral parlour near the estate. To make matters worse, the proposed development is just 200m from a school.

Not only will property prices in the area drop, Sin Ming Avenue may also become known as the “Avenue of the Dead”.

I am “dead” set against my residential area becoming a funeral hub. Surely the URA can consider other places to construct a funeral parlour?

Interest In Old Tiong Bahru Flats

Source : The Business Times, Wednesday, October 10, 2007

A STATE property consisting of some old flats at Tiong Bahru Road has attracted much interest, with the highest bid of $230,280 per month coming from Katong Hostel Pte Ltd.

Blocks 1, 3, 5, 7 and 9 along Tiong Bahru Road, which together have 120 flats with a total floor area of 9,840 square metres, have been slated for residential use.

The development, which has a lease of three-plus-three years, has 60 three-room flats and 60 four-room flats.

Fifteen companies have put in bids for the properties, according to the provisional tender results.

HDB Launches Oct 2007 Bi-Monthly Sale Of 4-Room And Bigger Flats

Source : Housing Development Board (HDB) Press Releases Oct 10, 2007

HDB is launching the sale of 489 flats in the North and West zones, under the Oct 2007 Bi-monthly Sale of 4-room and Bigger Flats today. This is the second sales exercise for the North and West zones under the combined balloting/walk-in system.

2 The flat supply for this exercise comprises 129 units of 4-room flats, 138 5-room flats and 222 Executive flats. They are located in 8 towns, namely Bukit Batok, Bukit Panjang, Choa Chu Kang, Jurong East, Jurong West, Sembawang, Woodlands, and Yishun (see Annex 1 for breakdown).


Application Period

3 Interested flat buyers can submit their applications online from today until 16 Oct 2007 (Tues). Following the close of the application period, HDB will conduct a computer ballot of all the submitted applications to determine the queue positions of the applicants. Applicants will then be notified of their appointments to book a flat, subject to availability and ethnic quota when their turn is due.

4 Those who have missed the application period can submit their applications online from 8 am on 17 Oct 2007 (Wed). They will be given appointments to book a flat after those who have earlier submitted their application within the application period. More information on the application procedure can be found in Annex 2.


Eligibility Conditions

5 Households with gross monthly income of up to $8,000 are eligible to buy the 4-room and bigger flats offered for sale, subject to other eligibility conditions such as citizenship, family nucleus, and non-ownership of private property.

6 Eligible first-timers can also apply for the Additional CPF Housing Grant (AHG) of up to $30,000. To qualify, they must have been in continuous employment over the past 24 months prior to the date of the flat application, and have an average gross monthly income of $4,000 or less over the same period.


Showflats & Sample Units

7 Interested flat buyers can visit HDB’s e-Sales website at www.hdb.gov.sg to view the electronic brochures and obtain more details on the Oct 2007 sales exercise. The sales brochures are also available at the Sales Office at HDB Hub, Toa Payoh, where there are also 3D models on display.

8 To provide applicants with a better idea of the flats on offer, some showflats and unfurnished sample units will be open for viewing. The showflats and sample units are also available for sale in this exercise. More information on these units can be found in Annex 3.


Details

9 For enquiries, the public can:
- e-mail hdbsales@hdb.gov.sg;
- call the Sales/Resale Customer Service Line at 1800-8663066 on weekdays from 8 am to 5 pm; or
- visit the HDB Sales Office to speak with our Customer Service Officers during office hours.

环保节能科技 将进入新加坡组屋区

《联合早报》Oct 9, 2007

新传媒报道，榜鹅的新组屋和即将翻新的女皇镇杜生组屋，将采用环保设计。建屋局在10月9日的颁奖礼上，就展出了一些环保设计。

建屋局希望能在所有的新组屋项目中，使用节能电灯和节省材料的墙壁，而榜鹅的新组屋和杜生组屋，将是接下来采用这些设计的组屋。

建屋局营建技术处长叶天佑说，“我们在最近几项工程所采用的科技，也会推广到新镇组屋内，例如备有脚座栏杆的洗手盆。”

建屋局也计划在为义顺组屋区翻新时，装置具有省水功能的马桶和洗手盆。今年的建屋局颁奖礼以“可持续性”为主题，共有12个项目在品质、设计和施工安全等方面，获得表扬。

Managing Agent For 120 Flats - Katong Hostel Top Bidder In HDB Tender

Source : The Straits Times, Oct 10, 2007

A SMALL firm, Katong Hostel, has emerged as the top bidder in a tender to find a managing agent to lease out 120 HDB flats.

The flats - likely to be let to international students and expats - have been vacated ahead of redevelopment under a pilot HDB scheme.

They will be leased out for three years with an option for three more years.

The 60 three-room flats and 60 four-room flats are in Blocks 1, 3, 5, 7 and 9 in Tiong Bahru Road.

The residents have moved to new flats under HDB’s Selective En-bloc Redevelopment Scheme which is designed to add new flats to meet demand.

Katong Hostel’s bid of $230,280 a month is 22 per cent above the next bid of $188,000, the provisional tender results released by the HDB yesterday showed.

That price is the sum the agent proposes to pay HDB to lease the flats - to be leased in turn to tenants.

Katong Hostel, which provides international student housing, is part of the Vita Group of hostels.

The tender, which attracted 15 widely varying bids from small firms and individuals, comes amid growing demand to lease HDB flats in a rising market.

The lowest bid came in at a mere $600 a month.

HDB has said that it will decide whether to expand the scheme, based on the tender response, as it has a potential supply of 4,000 to 5,000 flats which could boost supply in the next three years.

Shophouses In The CBD For Sale

Source : The Business Times, October 10, 2007

A BLOCK of 13 conservation shophouses in Telok Ayer and Boon Tat streets is for sale through an expression-of-interest exercise at an indicative price of $67 million.

On sale: The block of 13 shophouses is going for an indicative price of $1,200 psf

This works out to about $1,200 per square foot based on the gross floor area of some 56,000 square feet. The shophouses are on land that totals 16,987 sq ft and have 999-year leasehold tenure from 1884.

They are zoned for 'commercial' use, but Ho Eng Joo, executive director (investment sales) at marketing agent Colliers International, believes that the buyer could amalgamate the interiors into a single large floor plate to achieve greater space efficiency. This would make the property suitable for creative companies such as advertising or design agencies or for financial and professional services firms.

'The tight office supply and the surge in office rents have resulted in an increasing number of tenants seeking alternative commercial space such as shophouse units, as well as investors looking for well-located shophouse units for investment,' Mr Ho said.

He estimates the current yield to be around 2.5 per cent. The first storey of the shophouses is now used mainly by food and beverage outlets, while the upper storey is occupied by office tenants.

Mr Ho reckons the potential yield could be 5-5.5 per cent based on rent of about $5.50 psf per month.

It is rare for so many shophouses to be offered in one transaction. The recent sale of three shophouses in Ann Siang Road for $28.8 million worked out to $1,519 psf over their floor area.

Mr Ho said that most shophouse transactions involve individual units. A shophouse in Amoy Street was recently sold for about $1,100 psf, he said.

Reality Bites Resorts World At Sentosa

Source : The Business Times, October 10, 2007

MARK Burnett - creator of reality TV shows like Survivor and The Apprentice - has tied up with Genting International to produce TV and game shows for the region.

Mr Burnett: We've been looking at ways to do more business in the massive market in and around Asia

Speaking at a tele-conference yesterday, US- based Mr Burnett, president and founder of Mark Burnett Productions, said that filming for the first show could begin as early as next year.

Based at Resorts World at Sentosa, the firm will use the resort's attractions and facilities for some of its productions.

A joint-venture company called Mark Burnett Productions Asia (MBPA) will be formed, with the two partners holding equal equity and investing up to US$20 million together.

The two partners were brought together in June by the Singapore Economic Development Board (EDB).

Manohar Khiatani, assistant managing director of EDB, said: 'This decision underscores the attractiveness of Singapore as a location where leading media content owners create and manage their intellectual property assets.'

He said MBPA would reinforce the government's efforts to build Singapore into an international media hub.

Mark Burnett International and Genting International will team up on a 10-year exclusive partnership to develop, produce and distribute reality TV series and game shows for the region. The partnership covers all of Asia except Japan and the Middle East.

Mr Burnett said: 'We've been doing business in and around Asia since our company was founded and we've been looking at ways to do more in this massive market.'

Besides producing TV for Asia, MBPA will hold an exclusive licence to produce and distribute these programmes to multiple media platforms that range from broadcast, the Internet and mobile television.

The company will also develop original TV shows for Asia that will be licensed for format productions worldwide.

Mark Burnett Productions has already made forays into other markets. Scot Cru, executive (international), Mark Burnett Productions, said: 'Having recently launched Mark Burnett Productions France, this is a natural evolution of our worldwide brand.'

He added: 'The fact that this deal was fast-tracked and took a very short time to negotiate is evidence of both companies' recognition that it is a partnership that both companies felt was a no-brainer.'

S'pore Economy Is Not Overheating: PM Lee

Source : The Business Times, October 10, 2007

Inflation well under control even though economic growth this year is expected to be 7-8%

(BUDAPEST) Singapore Prime Minister Lee Hsien Loong yesterday said that he did not believe the Republic's economy was overheating, with inflation under control despite firm economic growth.

Rosy relations: Prime Minister Lee Hsien Loong (right) and his Hungarian counterpart, Ferenc Gyurcsany, in Budapest. Singapore and Hungary signed cooperation agreements on economic, scientific and educational matters

'This year, we expect 7-8 per cent growth. It's a good figure but at the same time inflation is well under control,' Mr Lee said.

He acknowledged that property prices had increased rapidly and that there were shortages in office space, which the government was trying to solve by, for example, building interim office space.

'In the medium term, we will have enough supply but in the short term there is a problem because so many businesses want to set up in Singapore,' Mr Lee said after officials from the two countries signed cooperation agreements on economic, scientific and educational matters.

Mr Lee also described the situation in Myanmar - where the government has violently suppressed pro-democracy protests - as 'serious', saying international powers needed to work on bringing together the two sides of the conflict - the ruling military and the opposition groups.

'What is necessary is to find reconciliation and an agreement amongst the parties in Myanmar on the way forward,' he said after meeting his Hungarian counterpart, Ferenc Gyurcsany. 'There's no easy way forward . . . It is not simply a matter of regime change,' Mr Lee added.

'I think that if you look at Iraq, you know that regime change is a slogan but may not be a policy.' - AP

Sub-Prime Defaults Could Total US$150b, Says S&P

Source : The Business Times, October 10, 2007

Crisis will not peak until 2009, but emerging markets offer silver lining

(MUMBAI) The US subprime housing crisis will not peak until 2009 and total defaults could reach US$150 billion, rating agency Standard and Poor's said yesterday, but robust emerging markets would help keep global growth strong.

S&P expected the world economy to grow 3.6 per cent in 2007 and 3.5 per cent in 2008. The US economy would lag at 2 per cent in both years, down from 2.9 per cent in 2006.

'World growth remains strong despite the weaknesses seen in the US economy - especially in emerging markets because of healthy domestic demand conditions and export strength to non-US markets,' S&P said in a report released in Mumbai.

'The fact that the US slowdown is concentrated in housing, which has relatively low import content, helps,' it said.

Emerging markets were far less vulnerable to credit market turmoil than during previous crises because of the capital flows attracted by high economic growth coupled with improved corporate governance standards, S&P said.

Moreover, high commodity prices were also helping many emerging market economies, such as Latin American and African countries that are major exporters.

S&P estimated that, on a purchasing-power parity basis, the United States would contribute only 9 per cent of world growth in 2007, compared to China's 33 per cent and India's 12 per cent.

Housing was the major weakness in the US economy and the sub-prime crisis - which roiled global markets in late July and August - was far from over, although its shock value was wearing off, David Wyss, S&P's chief economist, said.

'We think in the United States the housing market is not going to bottom until winter. We think the losses in these sectors won't really hit their peak until 2009,' he said.

That would feed through to unemployment and remain a brake on growth.

'Housing starts are going to drop further, the unemployment rate is going to tick up further, we are expecting another year of sluggish US economic growth,' Mr Wyss said.

'We are not halfway through with this crisis yet.' Mr Wyss expected the US trade deficit to shrink in coming months as stronger overseas growth and a weaker dollar would make US exports more competitive. -- Reuters

Singapore Rents Alarm Tenants, Spark Inflation: Andy Mukherjee

Oct 9, 2007

Singapore's landlords have already pushed their tenants into a corner; now they may be testing the central bank's patience.

If the global economy doesn't slow in 2008, the island's monetary authority may have to tighten its policy to manage the impact of skyrocketing rents on consumer prices.

And that means there is a good chance of a stronger Singapore dollar.

The average monthly rental for prime office space in the city state has tripled in the past three years, reaching a record high of $12.60 per square foot in the third quarter, according to real-estate brokerage CB Richard Ellis.

The global credit-market turmoil doesn't seem to have had a discernible impact on Singapore office demand, which continues to be dominated by banks and financial firms, Richard Ellis said.

Lehman Brothers Holdings Inc. and Merrill Lynch & Co. are building their own office complexes as vacancy rates in the central business district fall close to zero.

Future supply, too, is getting snapped up.

Standard Chartered Plc has booked 500,000 square feet (46,451 square meters), or about one-third of the first phase of Marina Bay Financial Center, which will only be ready in the first quarter of 2010.

The government is releasing more land to ease the supply crunch, though there's no reprieve in sight for tenants for at least another couple of years.

Collective Sales

Chicago-based property consulting firm Jones Lang LaSalle Inc. estimates supply of new office space in Singapore to be less than half of the projected demand of 5 million square feet from 2007 to 2009.

A similar story is playing out in residential and retail segments, which have even deeper linkages with local inflation.

In the first seven months of this year, 61 sites were sold to developers by owners of apartment complexes in so-called en- bloc, or collective, deals, for a total value of S$11 billion ($7.5 billion), surpassing last year's record of S$7.8 billion, according to research by property brokerage Savills Plc.

This has curbed supply of housing at a time when demand is soaring. International schools are overbooked, suggesting that more foreigners are being allowed in to boost the island's small workforce of 2.6 million people.

The government has recently tightened the rules for en-bloc sales and imposed higher fees on developers. That might help contain the frenzy of collective sales somewhat.

Residential rents, however, are unlikely to come down in a hurry. If anything, the rental increase will be inflationary.

14 Percent Growth

``Given the tight labor market, we expect higher living costs to lead to more generous wage settlements,'' Nicholas Bibby and Puay Yeong Goh, currency strategists at Barclays Capital in Singapore, wrote in a research note last week.

The Singapore economy grew an annualized 14.4 percent in the second quarter, its fastest pace of expansion in two years. Adding to the pressure on inflation -- which is already at a 12- year high of 2.9 percent -- retailers, too, are faced with galloping rental costs, which they want to pass on to consumers.

The Monetary Authority of Singapore sets policy by targeting the local dollar against a basket of trading partners' currencies. At its semi-annual review tomorrow, the central bank will have an opportunity to highlight the inflation risk.

Still, it's unlikely that the monetary authority will change its policy of ``modest and gradual'' currency appreciation, which has been in place since April 2004, to seek a significantly stronger Singapore dollar.

At least it may not do so immediately.

Inflation Hawk

A stronger currency won't be welcome at a time when the island's key electronics exports -- semiconductors, disk drives and telecommunications equipment -- have fallen for seven straight months.

``The difficulty for the central bank this time around is that while the domestic economy is booming, exports are not and indeed are threatened by U.S. developments,'' says Robert Prior- Wandesforde, an economist at HSBC Holdings Plc in Singapore.

Even so, a stronger Singapore dollar may become inevitable in 2008 as inflation crosses the 3 percent mark. Last time that happened was in 1994, when the stance of monetary policy was for quicker appreciation in the Singapore dollar than at present, the Barclays economists note.

The Singapore dollar has risen just 4 percent so far this year against the U.S. currency, compared with almost a 14 percent surge in the Thai baht and a 12 percent jump in the Indian rupee.

Singapore's monetary authority is an extremely credible inflation fighter. And inflation expectations are already firming thanks to the frenzied real-estate market.

While the central bank probably won't jump into the fray to prick the property bubble, it won't let consumer prices get out of hand either. A strong Singapore dollar may be a good bet.

F1 Race To Give Boost To Shops And Restaurants

Source : The Business Times, October 10, 2007

Ex-sponsorship chief sees property price hikes along route

Business will race ahead for shops and restaurants along the Formula One (F1) circuit, and tenants in office buildings in the area also stand to benefit, a sports management specialist said yesterday.

Mark Gallagher, who heads Eden Rock Sports and was sponsorship and marketing chief for the Jordan and Red Bull F1 teams, reckoned retailers and F&B operators will see business spiking during race week in September 2008, as tens of thousands of tourists flock into town.

He said that restaurants can be expected to offer week-long race promotions. And office tenants with a view of the circuit can either hold corporate parties on race day or allow outside operators to use the space.

Mr Gallagher, who has more than 20 years' experience of F1, was in Singapore yesterday to speak to tenants of One Raffles Quay (ORQ) and future occupants of Marina Bay Financial Centre (MBFC) to help them consider the impact and opportunities arising from Singapore's addition to the F1 calendar.

ORQ tenants that BT spoke did not rule out the idea of holding parties in their offices, but most said they would prefer to lock down trackside hotel venues with luxury facilities not found in their offices.

'We are looking at organising something around the race but nothing has been fixed up yet because it is still early,' said a foreign bank with its headquarters in ORQ. The bank said it is considering only hotels at the moment.

Mr Gallagher estimated that major companies could fly in 10,000 to 12,000 corporate guests for the race. The race is expected to bring in about 80,000 tourists in all.

He also said residential and commercial property prices could get a boost - especially in the immediate vicinity of the race track.

'In Monte Carlo, for example, there is no question that most people who buy property now try to buy property near the track,' he said.

Singapore Slightly Tightens Monetary Policy For Modest, Gradual Appreciation

Source : Channel NewsAsia, 10 October 2007

The Monetary Authority of Singapore (MAS) will continue with the policy of a modest and gradual appreciation of the Singapore dollar.

The slope of the S$NEER policy band will be increased slightly, but there will be no recentring of the policy band, or any change in its width, according to a statement released by the MAS.

The Singapore economy has performed better than expected so far this year, with industries associated with the property, financial advisory and capital markets contributing significantly to the overall GDP growth in the first half of the year.

MAS pointed out, as growth prospects of the US economy have weakened in line with the ongoing correction in the housing market and tighter credit conditions, other economies are also likely to see some softening in the near term.

However, the global economy is expected to remain resilient, particularly in Asia, where domestic demand and regional trade should continue to be firm.

In the Singapore economy, growth will be led by non-IT manufacturing, construction and business services, which have built up a strong momentum and are more dependent on regional and domestic sources of demand as well as developments in specific product markets.

The monetary authority’s assessment is that the Singapore economy is likely to expand at a slower rate in 2008 than in the recent past, reflecting weaker global economic growth.

Singapore’s GDP growth rate is expected to come in within its potential of four to six per cent next year. - CNA/ac

Govt Hit The Nail On The Head By Planning For Our Old Age

Source : The Straits Times, Oct 10, 2007

LIVING till a ripe old age is beyond many's imagination. Some cite their own ancestors as example that they would not live long as their own parents or grandparents died in their 60s or 70s.

But living long is no longer just about genes. It is about better nutrition and medical care. Just look at how easy it is to fix a blocked artery of the heart by putting in a stent and more.

But the issue is that longevity will mean that many of us will be doing literally nothing for 20 to 30 years if one were to retire at age 62 and live till their 90s.

There will be those who are supporting their family and children or use up their savings and their money in the CPF to purchase their home. They would be left with precious little. With another 30 years of life ahead of them at 62 years old, one needs a job. That is where the Government hit the nail right on the head.

Even if one saved enough, there would be a question of inflation reducing the value of their money and one needs to work to sponsor the annual trip to various parts of the world, et cetera.

Enough said. While the topic of long-term employment is controversial, one should err on the side of caution. Let there be jobs available for the elderly by changing mindsets. Even though you may be the lucky few who do not require a job when you reached 62, there will be many of your buddies who could be 'dying' to get one.

Then there is the question of living a full life and that to many would mean a meaningful lifestyle with either a part-time or full-time job in your elderly years so that time does not stand still while you wait for your end days.

Lim Yao Ho

Counsel Take Exception To Horizon Towers Report

Source : The Straits Times, Oct 10, 2007

WE REFER to the article, 'The Horizon Towers show' (The Sunday Times, Oct 7).
We will highlight two points. First, it is suggested in the article that Mr Michael Hwang left Allen & Gledhill at the end of 2002 because the firm was not big enough for both him and Mr K. Shanmugam.

This is quite untrue. Mr Hwang left because he was one year from retirement age and wanted to concentrate on being an arbitrator. That was difficult to do in a large firm like Allen & Gledhill with a very large client base.

Mr Hwang, as a partner of Allen & Gledhill, had to decline many arbitration appointments that he was approached for, because one or the other party to the arbitration often had some connection to Allen & Gledhill and it was therefore perceived that there would be a conflict of interest. Had he wanted to compete with Mr Shanmugam (or Allen & Gledhill), he would have accepted one of the several offers that he had received from other law firms when it was known that he was leaving Allen & Gledhill. Instead, he set up his own boutique law practice, concentrating on arbitration practice, and enjoys a good relationship with Allen & Gledhill (including Mr Shanmugam), which sublet part of its own office space to him. He and Mr Shanmugam also continue to consult each other on professional matters.

We are sorry that your writer had not contacted either Mr Hwang or Mr Shanmugam to verify the facts.

The second point that we will highlight is that the thrust of the article was that personal relationships motivated the remarks made in court. Your writer focused on the relationships between Mr Shanmugam and Messrs K. S. Rajah and Hwang. That suggestion is quite inaccurate and should never have been made. The remarks were in the nature of banter, no more and no less than the banter which passes between counsel in many cases. It was not unique to the Horizon Towers case, whereas the article gives that misleading impression.

That misleading impression was then made worse by the suggestion that personal relationships prompted the remarks. Neither we nor any of the other counsel involved were so unprofessional as to allow our personal relationships to affect what we said in court on behalf of our clients.

K. S. Rajah
Michael Hwang
K. Shanmugam
Senior Counsel

Editor's note: We stand corrected.

S'pore Q3 Economy Grows 9.4%

Source : The Straits Times, Oct 10, 2007

THE Singapore economy grew strongly, at 9.4 per cent on a year-on-year basis in the third quarter of this year.

Growth of the services producing industries eased slightly to 8.1 per cent from 8.4 per cent. The financial services sector led the growth. -- PHOTO: MALCOLM MCLEOD

The latest figure is up from 8.7 per cent in the previous quarter and within market forecasts. Economists were expecting third-quarter growth between 9 and 10 per cent.

The Advance GDP Estimates issued by the Ministry of Trade and Industry on Wednesday indicated that the economy is well on track to meet the 7-8 per cent growth forecast for 2007 announced in August.

The Republic's expansion has pushed inflation and home prices to the highest in more than a decade and encouraged companies to hire at an unprecedented pace.

On a quarter-on-quarter basis, GDP growth decelerated to 6.4 per cent from 14.4 per cent a quarter earlier.

The estimates are computed from the first two months' data - July and August 2007. They are an early indication of the GDP growth in the quarter and may be revised when more comprehensive data becomes available.

Manufacturing
Underpinned by strong growth in the biomedical manufacturing and transport engineering clusters, the manufacturing sector is estimated to have grown by 12.3 per cent in the third quarter, up from 8.3 per cent in the previous quarter.

The construction sector grew by a robust 15.5 per cent compared with 18.8 per cent in the second quarter.

Growth of the services producing industries eased slightly to 8.1 per cent from 8.4 per cent. The finnacial services sector led the growth.

The preliminary GDP estimates for the third quarter will be released next month in the Economic Survey of Singapore.

MAS Tightens Policy As Inflation Climbs

Source : The Straits Times, Oct 10, 2007











The Monetary Authority of Singapore on Wednesday unexpectedly moved to keep inflation in check by tightening its monetary policy and allowing the Singapore dollar to rise, amid signs that it is worried over rising prices.

The MAS said it would slightly increase the slope of its policy band, effectively letting the Singapore dollar appreciate further against the US dollar.

The Singapore dollar hit a 10-year high on the news. The currency rose as high as US1.4625 in early trade, its strongest level since August 1997.

The move comes as the US$129 billion (S$191 billion) economy keeps powering ahead, growing at an annualised, seasonally adjusted rate of 6.4 per cent in the third quarter, slightly below market expectations, advance government data showed on Wednesday.

Compared with a year earlier, gross domestic product was 9.4 per cent higher in the third quarter, amid a fast-growing financial sector and a sharp rise in construction activity prompted by a property boom. That figure was broadly in line with expectations of 9.6 per cent growth.

The Republic's central bank conducts monetary policy by steering the Singapore dollar in a band against a trade-weighted basket of currencies rather than setting an interest rate as most central banks do. Both the band and the basket are kept secret.

'We can say it is a tightening of the monetary policy. Inflation pressure is really building up very quickly in the economy. Food prices have gone up a lot. Imported inflation is building up very strongly, which is why there is a need for a stronger currency to keep inflation at bay,' said Irvin Seah, an economist at DBS Bank.

Raised inflation expectations
The MAS also raised its inflation expectations for this year and next, forecasting that consumer prices will appreciate by 1.5 to 2 per cent in 2007 - up from its previous forecast of 1 to 2 per cent - after the annual inflation rate reached a 12-year high of 2.9 per cent in August.

In 2008, inflation could come in at 2-3 per cent, up from its previous forecast of 1-2 per cent, it said.

All economists polled by Reuters had expected the MAS to maintain its three-and-a-half-year-old moderately tight monetary policy to keep a lid on inflation as asset prices spiral higher amid a booming economy and after a sales tax hike in July.

However, some economists polled last week believe the central bank's policy meeting in April next year could bring a policy change, citing concerns over inflation and the possibility of the economy overheating.

Fion Phua, 36, who runs a brokerage trading in memberships for golf and country clubs in Singapore, said the booming economy has driven up demand, causing membership prices to jump as much as 40 per cent so far this year.

'A lot of people are cash-rich from the stock and property markets, and expensive club memberships are a status symbol for them. And the demand looks like it's not going to stop,' said Ms Phua. -- REUTERS

Tax Perks For Developers In IDR

Source : The Straits Times, Oct 10, 2007

Investors in special zone also exempted from bumiputera ownership quotas

PUTRAJAYA - HOPING to woo bigger investors after some major successes, Malaysia yesterday announced that developers investing in south Johor's economic zone will be given incentives that include a 10-year tax holiday.

Prime Minister Abdullah Badawi announced that existing incentives will be extended to developers, companies undertaking management and marketing for the developers, and expatriates in the Iskandar Development Region (IDR).

The incentives include tax exemptions on income from the sale of land and rental and sale of buildings, as well as exemption on withholding taxes.

They are also exempted from bumiputera quotas in corporate equity ownership and property sales, and are free to source for capital globally and to employ foreign workers.

'Since private investments will be the main catalyst of growth, there is a need to offer investors attractive fiscal and non-fiscal incentives,' Datuk Seri Abdullah said after chairing a meeting of the Iskandar Development Region Authority yesterday.

The incentives were initially confined to companies involved in the creative, education, finance, health, logistics and tourism sectors.

Officials said only developers investing in an area called Node 1 located within Nusajaya will qualify for the perks. The area is about 30km west of Johor Baru and just after the Second Link at Tuas.

Node 1 is about 9 million sq m in size, and is a development comprising leisure, residential, financial and high-end industrial components.

A group of Middle Eastern investors recently signed deals to commit US$1.2 billion (S$1.8 billion) to the area.

Together, the deals make up the single biggest foreign real estate investment in Malaysia.

Recently, Dubai World and Malaysian group MMC also proposed to build a US$4.7 billion maritime park in the IDR.

Asked about fears that local investors were being left out, Datuk Seri Abdullah said the government wanted Malaysians to participate as well.

'This corridor is (also) for local investors. They should also participate. We also accept proposals from local investors,' he said.

The IDR aims to leverage on its proximity to Singapore. It has an area 21/2 times the size of the Republic and Malaysia has it targeted as its next fast-growth area by attracting foreign investors.

Officials said only developers investing in an area called Node 1 located within Nusajaya will qualify for the perks. The area is about 30km west of Johor Baru and just after the Second Link at Tuas.

Node 1 is about 9 million sq m in size, and is a development comprising leisure, residential, financial and high-end industrial components.

A group of Middle Eastern investors recently signed deals to commit US$1.2 billion (S$1.8 billion) to the area.

Together, the deals make up the single biggest foreign real estate investment in Malaysia.

Recently, Dubai World and Malaysian group MMC also proposed to build a US$4.7 billion maritime park in the IDR.

Asked about fears that local investors were being left out, Datuk Seri Abdullah said the government wanted Malaysians to participate as well.

'This corridor is (also) for local investors. They should also participate. We also accept proposals from local investors,' he said.

The IDR aims to leverage on its proximity to Singapore. It has an area 21/2 times the size of the Republic and Malaysia has it targeted as its next fast-growth area by attracting foreign investors.


Beware of S'pore takeover: PAS

A LEADER of fundamentalist Islamic party PAS said Malaysia's 'black history' may be repeated if the government does not prevent Singapore from gaining control of the Iskandar Development Region (IDR).
Mr Salahuddin Ayub, youth chief of Parti Islam SeMalaysia (PAS), was referring to the 'handover' of Singapore by former premier Tunku Abdul Rahman to Mr Lee Kuan Yew.

'The Abdullah government may similarly hand over the IDR to Singapore, when Singapore's political power in the IDR becomes so strong that the easiest way out would be for the Malaysian government to release the region to Singapore,' he was quoted as saying in the Oct 16 issue of PAS' party newspaper, Harakah.

Mr Salahuddin was echoing the fear among some Umno and Malay leaders, including former premier Mahathir Mohamad, that attracting Singaporean investments to the IDR could lead to the Malays losing control of southern Johor.

'If this happens, it would be a black spot in our history when yet another Malaysian territory falls into the hands of a foreign power,' Mr Salahuddin said at a political talk in a village in the Johor town of Pontian.

He said the zealous pursuit of development by Malaysian leaders without regard for adverse consequences would result in losing yet another Malaysian territory.

'If this happens, it would be because the leaders running this country are weak,' he said.

Mr Salahuddin, who is also a Kelantan Member of Parliament, urged Malaysians to think through the issue deeply.

'The people must act before it's too late,' he said.

Marina Bay Condo To Be Launched In January

Source : The Straits Times, Oct 9, 2007

Developers expect high prices, with smaller units costing at least $4m-$5m

MARINA Bay Suites, the second and last residential block at the Marina Bay Financial Centre, will be launched early next year, as prices in the area continue to climb.














Sales for Marina Bay Suites have yet to start, although the condo was marketed recently at a Shanghai property exhibition. -- PHOTO: MARINA BAY SUITES

The developers - Cheung Kong (Holdings)/Hutchison Whampoa, Hong Kong Land and Keppel Land - are expecting strong interest in the condo, as well as high prices.

Market estimates expect smaller units to fetch at least $4 million to $5 million.

Sales for Marina Bay Suites have yet to start, although the condo was marketed recently at a Shanghai property exhibition.

Clients from China and Hong Kong made up almost 20 per cent of those who bought units at the first Marina Bay Financial Centre condo.

Marina Bay Suites will be marketed in Dubai next week, and then in Hong Kong.

It will have 223 three- to four-bedroom apartments ranging in area from 1,500 sq ft to 2,500 sq ft - all with private lift lobbies.

There will be a single-level penthouse on the 65th floor, and two duplex penthouses on the 63rd.

'Marina Bay Suites will be a fitting, even more upscale, sister development to the 428-unit Marina Bay Residences, which sold out in just three days in December last year,' said the condo's head of residential marketing, Mr Kan Kum Wah.

There is talk that the 65-storey Marina Bay Suites could be priced at an average of $3,000 per sq ft (psf).

Mr Kan said it was too early to decide on pricing, although the developers will take 'close reference' to sub-sale prices of Marina Bay Residences.

The highest sub-sale price recorded for Marina Bay Residences was $3,600 psf in June. This compared with the average apartment price of around $1,850 psf at last December's launch, when penthouses sold for up to $3,450 psf.

Recent Marina Bay Residences deals in August ranged from $2,061 psf to $3,080 psf for the 732 sq ft to 1,981 sq ft apartments.

A unit at the popular The Sail @ Marina Bay nearby went for as high as $3,301 psf in August.

In the same month, other deals for apartments as small as 667 sq ft were recorded at $1,300 psf to $2,999 psf.

Phase one of The Sail - the first condo in Marina Bay - was launched at below $1,000 psf in late 2004.

Next Generation HDB Housing To Offer Greener Lifestyles

Source : The Straits Times, Oct 9, 2007

Minister notes keen interest in such housing: 80% of first eco-precinct taken up

SINGAPOREANS increasingly aspire to greener lifestyles and the next generation of public housing will cater to these needs.

Minister for National Development Mah Bow Tan delivered this message on growing interest in environmentally sustainable housing at the annual Housing Board awards and public housing seminar on Tuesday.

Nearly 80 per cent of Singapore's first eco-precinct, Treelodge@Punggol, a public housing project launched by HDB in March, has already been taken up.

'The strong public interest for this project demonstrates support from Singaporeans for a greener lifestyle,' Mr Mah stated in a speech delivered by Parliamentary Secretary (National Development) Mohamad Maliki Osman to a 500-strong audience on his behalf.

Some green features at Treelodge@Punggol, due for completion in 2012, include solar-powered corridor lighting and common areas washed by recycled rainwater.

Mr Mah also called on the private sector to play a 'key role' in remaking the heartland. 'A holistic approach, with close collaboration among industry partners, is needed for sustainable development of public housing to succeed,' said Mr Mah.

This year's seminar featured industry speakers addressing the theme: Sustainable Construction And Technologies.

HDB also launched a guidebook for the industry yesterday, called The Green Housing Book, which showcases its environmental initiatives over the years.

This included HDB's innovations in the areas of environmental sustainability, energy, water, and resource materials.

Local firms were also recognised for their contribution towards good-quality public housing at the HDB awards.

Building firm Ho Lee Construction received two HDB Quality Awards for the building and upgrading categories.

One of its projects, Seng Kang Neighbourhood 2, was commended by HDB as 'quality public housing with finishes comparable with that of private developments'.

'We're very happy and encouraged to receive the award, as it's the first for the company from HDB,' said Ho Lee senior project manager Susan Seah. Four other firms, including Teambuild Construction, a contractor, and EM Services, a supplier, also won the awards.

Local architectural firm Surbana International Consultants was the big winner of HDB's design awards, bagging all three awards in the architecture category for its work on The Coris in Seng Kang, Ghim Moh Gardens, and Marine Terrace Walk.

Four construction firms, including Welltech Construction and Fonda Construction, won the HDB Construction Safety Awards.

IMF Lowers 2008 Global Growth Forecast To 4.8%: Source

Source : Channel NewsAsai, 09 October 2007

FRANKFURT: The International Monetary Fund has lowered its 2008 global growth forecast to 4.8 percent from a previous estimate of 5.2 percent, German sources told AFP on Tuesday.

The headquarters of the IMF

The IMF slashed its estimate for US economic growth next year to 1.9 percent from the previous forecast of 2.8 percent, the sources added.

Previous estimates had been made before the international banking system was rocked by turmoil stemming from the collapse of the US market for high-risk home loans, also known as the sub-prime market.

Official IMF forecasts are to be published next week, and the sources said most regions would be affected by the international financial crisis.

Even global economic locomotive China would see its growth forecast trimmed by a half percentage point to 10.0 percent, the sources said.

IMF director Rodrigo Rato said last month during a visit to Peru that the global credit crunch sparked by the meltdown of the US sub-prime market would be felt next year, particularly in the United States.

For the 13-nation eurozone, the IMF anticipates economic growth next year of 2.1 percent, compared with its earlier forecast of 2.5 percent.

In Germany, the IMF now expects the economy to expand by 2.0 percent, down from 2.4 percent, and in France by 2.0 percent, down from 2.3 percent, the source said. - AFP/so

F1 Race May Boost Residential, Commercial Property Value

Source : Channel NewsAsia, 09 October 2007

Formula One motor-racing action may boost the value of residential and commercial properties around the Marina Bay area.

According to some analysts, the premium comes with being close to possibly the first-ever night street circuit in F1 history.

Many of today's Formula One race tracks are built far away from the city area, and only a handful of them have their circuits right in the heart of the city.

Analysts said history shows that properties near such circuits have enjoyed a premium in being close to the F1 action.

Mark Gallagher, International Motorsports Consultant, Eden Rock Sports, UK, said: "The more prestige areas close to the track also benefited because people aspire to live near the Grand Prix track and it became a big talking point. Now when people move to Melbourne, the first thing they ask is how far the location is from the Grand Prix track."

Singapore is set to chart a new course in F1 history with a circuit that boasts the city skyline as a background.

Properties aside, businesses in the area are also expected to get a boost.

But analysts said it may take one or two years for Singapore businesses to maximise their leverage from the Grand Prix race.

Mr Gallagher said: "First of all, there'll be different levels of corporate hospitality that they can buy into. You can run Grand Prix-style promotions in your businesses. There's nothing to stop you from doing that. If you're careful with the intellectual property of Formula One, you can still run promotions and activities."

The F1 event in Singapore will take place on 28 September next year. It is expected to bring in about 80,000 tourists. - CNA/so

Genting Ties Up With Reality TV Producer Mark Burnett

Source : Channel NewsAsia, 09 October 2007

Genting International and reality TV producer Mark Burnett's company have formed a joint venture to develop reality TV shows for Asia.

Artist's impression of Resorts World at Sentosa from the Sentosa Gateway

Related Video Link - http://tinyurl.com/yu7p8q
Genting ties up with reality TV producer Mark Burnett

The two companies announced a ten-year exclusive partnership that includes producing and distributing reality and game shows in Asia, excluding Japan and the Middle East.

Both partners will take equal stake in the US$20 million joint venture called Mark Burnett Productions Asia.

Mark Burnett International is behind hit reality TV shows like "Survivor" and "The Apprentice".

The joint venture company will have its base in Genting's integrated resort, Resorts World at Sentosa, and will use the resort facilities and attractions as the backdrop for some of its productions.

Visitors at the resort can take part in game shows, watch the programmes being made and even interact with the 'stars' of the show.

Mr Tan Hee Teck, CEO of Resorts World at Sentosa, said: "Mark Burnett was introduced to us by EDB Singapore. We believe in enhancing the whole resort area, where it's not just a place to have a theme park and oceanarium, but also a place where we have a lot of buzz and activity. We believe Mark Burnett will bring that to the resort.....we (can) produce live shows where audiences can come in and participate."

The deal marks Genting's foray into TV production and ties in with Mark Burnett's long-term strategy to expand in Asia.

Genting said the joint venture is a timely response to what it feels is pent-up demand for Asia-centric reality television programmes.

And, it believes it has the biggest trump card yet in Mark Burnett, the master of reality TV.

The venture is targeting to produce three to five shows a year, and the first show could be in production as soon as next year.

The tie-up is part of Genting's efforts to boost the entertainment offerings at the Sentosa integrated resort.

"We are looking very actively at other entertainment products like movie production, not just in Singapore but for the rest of Asia. We are still in discussion stages," said the Resorts World Sentosa CEO. - CNA/ir

Green Technologies To Be Used In Punggol, Dawson Estates

Source : Channel NewsAsia, 09 October 2007

Punggol and the Dawson estate in Queenstown are being rejuvenated with more environmentally friendly technology.

These estates, along with Yishun, are the first towns to be overhauled under a masterplan to transform HDB estates over a span of 20 to 30 years.

Some of the environmentally friendly technologies that will be used to improve the Punggol and Dawson estates include energy-saving LED lights and environmentally sustainable wall partitions.

The HDB also wants to use green technology in all of its new projects such as the Treelodge@Punggol.

Yap Tiem Yew, director of Building Technology at HDB, said: "Some of the technologies we have introduced into our recent projects will also be introduced into our new towns – for example, the washbasin that comes with the pedestal banister, the LED lightings, the greenery and the orientation of the building."

The north-south orientation avoids direct sunlight and as a result, less air conditioning and less energy will be used.

A total of 12 projects were recognised at this year's HDB Awards for quality, design and construction safety.

HDB has also launched a guidebook on the various green initiatives introduced to help developers come up with sustainable buildings. - CNA/so

S'pore GDP Growth Remains Strong In Q3, Up 9.4% Year-On-Year

Source : Channel NewsAsia, 10 October 2007

The Singapore economy continued to register strong growth in the third quarter of 2007.

Advance estimates showed that real gross domestic product (GDP) rose by 9.4 per cent on a year-on-year basis, up from 8.7 per cent in the previous quarter.

The data indicated that the economy is well on track to meet the government's forecast of seven to eight per cent growth for the year.

On a quarter-on-quarter annualised basis, real GDP growth decelerated to 6.4 per cent from 14.4 per cent in the second quarter.

The advance estimate, based largely on data from July and August, gives an early indication of the economy's performance in the third quarter. - CNA/ac