Source : The Business Times, November 2, 2007
SINGAPORE Land (SingLand) and its parent company United Industrial Corporation (UIC) have both reported higher third-quarter earnings.
For the three months ended Sept 30, SingLand posted a 30 per cent year- on-year increase in net profit to $30.1 million, on the back of a 27 per cent gain in revenue to $70.52 million. SingLand, a major office landlord, said rental rates and occupancy rates improved, which resulted in an $8.1 million or 20 per cent rise in gross rental income to $47.4 million.
UIC's Q3 net earnings rose 43 per cent to $25.4 million. UIC was in the news earlier this week for having sold more than 100 units of its Park Natura condo in Bukit Batok since last weekend. Its Q3 revenue jumped 76 per cent to $134.8 million, due to higher sales of residential properties and revenue recognition on a percentage of completion basis, contribution from Pan Pacific Singapore hotel as well as higher rental income.
For the full report, read The Business Times Weekend.
Friday, November 2, 2007
Why Resale-Flat Buyer Didn't Effect New Fire Policy
Source : The Straits Times, Nov 2, 2007
I REFER to the letter by Mr Dons Joshua Goh Chun Hwee, 'Why wasn't fire coverage renewed for five years?' (ST, Oct 16).
American Home Assurance Company, Singapore (AHAC) is the appointed insurer for the HDB fire-insurance scheme. This scheme ensures prompt reinstatement of flats affected by fire and helps to ease the financial burden of HDB lessees by offering fire insurance at affordable premiums.
AHAC fire insurance insures the flat and not the owner; a new flat owner could obtain the original insurance certificate from the previous owner and continue the cover till the expiry of the policy. For the new owner who has not obtained the original certificate of insurance from the previous owner, a reprint of the certificate could be obtained at AHAC counters located at HDB Hub for a fee, depending on the flat type.
Mr Goh purchased his resale flat last December which at that time had fire insurance purchased by the previous owner and expiring only this month. The policy had more than six months' coverage to go and hence he obtained a reprint of the certificate of insurance instead of effecting a new policy. The fee collected was for the reprint and administrative charges incurred in processing the request.
AHAC is committed to delivering excellent service to our customers and it is one of our top priorities to address Mr Goh's concerns. Unfortunately, the matter was not brought to our attention prior to the publication of his letter.
Mr Goh has since contacted our company and we have resolved the matter.
Koh Hoe Shin
Vice-President
Personal Lines Department
American Home Assurance Company, Singapore
I REFER to the letter by Mr Dons Joshua Goh Chun Hwee, 'Why wasn't fire coverage renewed for five years?' (ST, Oct 16).
American Home Assurance Company, Singapore (AHAC) is the appointed insurer for the HDB fire-insurance scheme. This scheme ensures prompt reinstatement of flats affected by fire and helps to ease the financial burden of HDB lessees by offering fire insurance at affordable premiums.
AHAC fire insurance insures the flat and not the owner; a new flat owner could obtain the original insurance certificate from the previous owner and continue the cover till the expiry of the policy. For the new owner who has not obtained the original certificate of insurance from the previous owner, a reprint of the certificate could be obtained at AHAC counters located at HDB Hub for a fee, depending on the flat type.
Mr Goh purchased his resale flat last December which at that time had fire insurance purchased by the previous owner and expiring only this month. The policy had more than six months' coverage to go and hence he obtained a reprint of the certificate of insurance instead of effecting a new policy. The fee collected was for the reprint and administrative charges incurred in processing the request.
AHAC is committed to delivering excellent service to our customers and it is one of our top priorities to address Mr Goh's concerns. Unfortunately, the matter was not brought to our attention prior to the publication of his letter.
Mr Goh has since contacted our company and we have resolved the matter.
Koh Hoe Shin
Vice-President
Personal Lines Department
American Home Assurance Company, Singapore
Ease Jams, Commence Work On Bukit Timah Line
Source : The Straits Times, Nov 2, 2007
I WATCHED from Sherwood Tower the daily morning traffic jam along Jalan Anak Bukit in the direction of Clementi and Dunearn Road. It is getting from bad to worse, even with the opening of the underpass along Jalan Anak Bukit and the flyover at King Albert Park.
The present road network linking the north to the Central Business District (CBD) would not be able to take the heavy road traffic in the coming years without serious loss of productivity and resources, e.g., petrol at US$90 per barrel.
It takes at least an hour to travel by bus, not counting waiting time at bus stop, from Bukit Panjang to the CBD. Car owners would not abandon their cars to take a bus to work every day unless there is a better alternative.
The Government's plan to have the Bukit Timah Line completed in 2015 should be brought forward and construction should commence immediately. In my opinion, even this would be too late for it will take at least five years to complete the project.
With the millions collected from Certificates of Entitlement, Electronic Road Pricing and road tax, the Government can afford to commence construction without waiting for construction costs to fall after the completion of the two integrated resorts.
Yap Chian Heng
I WATCHED from Sherwood Tower the daily morning traffic jam along Jalan Anak Bukit in the direction of Clementi and Dunearn Road. It is getting from bad to worse, even with the opening of the underpass along Jalan Anak Bukit and the flyover at King Albert Park.
The present road network linking the north to the Central Business District (CBD) would not be able to take the heavy road traffic in the coming years without serious loss of productivity and resources, e.g., petrol at US$90 per barrel.
It takes at least an hour to travel by bus, not counting waiting time at bus stop, from Bukit Panjang to the CBD. Car owners would not abandon their cars to take a bus to work every day unless there is a better alternative.
The Government's plan to have the Bukit Timah Line completed in 2015 should be brought forward and construction should commence immediately. In my opinion, even this would be too late for it will take at least five years to complete the project.
With the millions collected from Certificates of Entitlement, Electronic Road Pricing and road tax, the Government can afford to commence construction without waiting for construction costs to fall after the completion of the two integrated resorts.
Yap Chian Heng
Take-Up Of JTC Ready-Built Space Rises To 2-Year High
Source : The Straits Times, Nov 2, 2007
Strong demand for factory, business park premises in third quarter.
THE take-up among businesses for JTC Corp's ready-built facilities is at a two-year high.
Net allocation of such industrial space stood at 75,100 sq m in the July to September quarter - 29 per cent more than in the previous quarter and the highest since the third quarter of 2005.
This increase in take-up from the industrial landlord was due mainly from good demand for factory space and business park space.
Gross allocation of ready-built space in JTC's business parks almost doubled to 5,300 sq m in the third quarter.
Occupancy of JTC's business parks was 94 per cent as at the end of September.
The net take-up of JTC's prepared industrial land in the JTC's logistics parks, business parks and on Jurong Island stood at 55.9ha in the quarter.
This is 13 per cent down from the previous quarter but still more than twice the figure achieved in the third quarter of last year.
Such land - which has road access, drains, water and sewer mains to allow companies to develop their own facilities - are provided both inside and outside specialised parks such as Changi Business Park, International Business Park in Jurong East and Biopolis in one-north in Buona Vista.
JTC said demand came mostly from companies dealing in logistics, precision engineering and services.
Local firms continued to chase prepared industrial land outside specialised parks, which formed 78 per cent of gross demand. However, the proportion of such land taken up by foreign firms has risen by 11 percentage points to 22 per cent over the previous quarter.
Meanwhile, consultants expect more companies to consider moving operations from the Central Business District (CBD) as office rentals soar.
Rents grew 14.8 per cent in the third quarter and have shot up more than 40 per cent since the end of last year.
The director of research and consultancy at Colliers International, Ms Tay Huey Ying said: 'We are seeing firms that are more prepared to consider alternative business premises other than office space within the CBD.'
Companies providing management services or those in the insurance, design or aviation sectors, for example, have either made the move out or are preparing to do so, move to alternative locations in business or industrial parks or temporary office sites offered by the Government,she said.
Ms Tay expects the trend to continue until more prime office space is added from 2010, mainly at Marina Bay.
Meanwhile, JTC said that the first phase of its research and development complex, Fusionopolis in one-north Buona Vista, is expected to be completed by the end of this year. It will offer about 120,730 sq m of business park space.
Strong demand for factory, business park premises in third quarter.
THE take-up among businesses for JTC Corp's ready-built facilities is at a two-year high.
Net allocation of such industrial space stood at 75,100 sq m in the July to September quarter - 29 per cent more than in the previous quarter and the highest since the third quarter of 2005.
This increase in take-up from the industrial landlord was due mainly from good demand for factory space and business park space.
Gross allocation of ready-built space in JTC's business parks almost doubled to 5,300 sq m in the third quarter.
Occupancy of JTC's business parks was 94 per cent as at the end of September.
The net take-up of JTC's prepared industrial land in the JTC's logistics parks, business parks and on Jurong Island stood at 55.9ha in the quarter.
This is 13 per cent down from the previous quarter but still more than twice the figure achieved in the third quarter of last year.
Such land - which has road access, drains, water and sewer mains to allow companies to develop their own facilities - are provided both inside and outside specialised parks such as Changi Business Park, International Business Park in Jurong East and Biopolis in one-north in Buona Vista.
JTC said demand came mostly from companies dealing in logistics, precision engineering and services.
Local firms continued to chase prepared industrial land outside specialised parks, which formed 78 per cent of gross demand. However, the proportion of such land taken up by foreign firms has risen by 11 percentage points to 22 per cent over the previous quarter.
Meanwhile, consultants expect more companies to consider moving operations from the Central Business District (CBD) as office rentals soar.
Rents grew 14.8 per cent in the third quarter and have shot up more than 40 per cent since the end of last year.
The director of research and consultancy at Colliers International, Ms Tay Huey Ying said: 'We are seeing firms that are more prepared to consider alternative business premises other than office space within the CBD.'
Companies providing management services or those in the insurance, design or aviation sectors, for example, have either made the move out or are preparing to do so, move to alternative locations in business or industrial parks or temporary office sites offered by the Government,she said.
Ms Tay expects the trend to continue until more prime office space is added from 2010, mainly at Marina Bay.
Meanwhile, JTC said that the first phase of its research and development complex, Fusionopolis in one-north Buona Vista, is expected to be completed by the end of this year. It will offer about 120,730 sq m of business park space.
Stocks Tumble As Credit Concerns Return
Source : The Straits Times, Nov 2, 2007
NEW YORK - WORLD stocks tumbled and bonds rallied on Thursday as a resurgence in credit worries roiled markets and sent investors into safe-haven investments one day after the Federal Reserve cut interest rates to calm subprime-related concerns.
Weaker financial stocks led a steep drop on Wall Street that encouraged investors to back out of riskier assets, pushing up the yen against the dollar and lifting United States Treasury debt prices.
European shares suffered their largest one-day per centage drop in eight weeks, hit by declines in banks, with the pan-European FTSEurofirst 300 index down 1.6 per cent.
Credit Suisse reported a 2.2 billion Swiss franc (S$2.8 billion) writedown on bad loans and mortgage investments on Thursday and said its investment banking division barely broke even.
Citigroup shares fell as much as 9 per cent after a CIBC World Markets analyst downgraded the largest US bank to 'sector underperformer'. The analyst said Citigroup would be forced to sell assets, raise capital or cut its dividend to improve its capital ratios.
CIBC also downgraded Bank of America, saying it sees a diminished revenue outlook for the bank.
GMAC, the finance company once controlled by General Motors, said it lost US$1.6 billion (S$2.32) in the third quarter.
'It is all concerns about the implosions in the credit markets and that we are only seeing the beginning of it - that it is going to hurt the economy and most likely force the Fed's hand again to ease,' said Ms Mary Ann Hurley, vice-president of fixed income trading at D.A. Davidson in Seattle.
'Also, the economic data today was really mixed at best for the economy,' Ms Hurley said. -- REUTERS
NEW YORK - WORLD stocks tumbled and bonds rallied on Thursday as a resurgence in credit worries roiled markets and sent investors into safe-haven investments one day after the Federal Reserve cut interest rates to calm subprime-related concerns.
Weaker financial stocks led a steep drop on Wall Street that encouraged investors to back out of riskier assets, pushing up the yen against the dollar and lifting United States Treasury debt prices.
European shares suffered their largest one-day per centage drop in eight weeks, hit by declines in banks, with the pan-European FTSEurofirst 300 index down 1.6 per cent.
Credit Suisse reported a 2.2 billion Swiss franc (S$2.8 billion) writedown on bad loans and mortgage investments on Thursday and said its investment banking division barely broke even.
Citigroup shares fell as much as 9 per cent after a CIBC World Markets analyst downgraded the largest US bank to 'sector underperformer'. The analyst said Citigroup would be forced to sell assets, raise capital or cut its dividend to improve its capital ratios.
CIBC also downgraded Bank of America, saying it sees a diminished revenue outlook for the bank.
GMAC, the finance company once controlled by General Motors, said it lost US$1.6 billion (S$2.32) in the third quarter.
'It is all concerns about the implosions in the credit markets and that we are only seeing the beginning of it - that it is going to hurt the economy and most likely force the Fed's hand again to ease,' said Ms Mary Ann Hurley, vice-president of fixed income trading at D.A. Davidson in Seattle.
'Also, the economic data today was really mixed at best for the economy,' Ms Hurley said. -- REUTERS
Asian Stocks Close Sharply Lower On US Subprime Fears
Source : The Straits Times, Nov 2, 2007
HONG KONG - ASIAN stocks suffered heavy losses Friday, mirroring sharp falls on other global markets amid fears that the fallout from the US subprime loan crisis is far from over.
Markets around the region fell by as much as three percent after drops in New York and Europe, as renewed worries about the fallout from US mortgage and credit woes erased earlier euphoria over a Federal Reserve interest rate cut.
US falls came after oil giant ExxonMobil missed Wall Street profit forecasts and analysts at CIBC World Markets downgraded Citigroup and Bank of America, the two biggest US banks, on worries about a credit squeeze.
CIBC said Citigroup needed to raise US$30 billion(S$ 43.5 billion) in capital over the near-term, also dampening the market sentiment.
Signs that major US banks may be more severely affected by the subprime loan crisis than previously expected took a heavy toll on financial stocks.
A surge in crude oil prices above US$96 dollars a barrel for the first time Thursday only added to the market's nervousness despite a later pullback.
TOKYO
Japanese share prices closed down 2.09 per cent on Friday, hit by heavy losses on Wall Street as investors fretted that the fallout from recent credit market turmoil is far from over, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index dropped 352.92 points to 16,517.48, reflecting sharp falls across Asia.
The broader Topix index of all first-section shares fell 35.61 points or 2.18 percent to 1,600.17.
HONG KONG
Hong Kong share prices closed sharply lower Friday, down 3.3 per cent, as steep falls on Wall Street prompted investors to sell-down the benchmark index, dealers said.
The Hang Seng Index ended the day's trading 1,024.54 points down at 30,468.34.
SHANGHAI
Chinese share prices closed sharply lower Friday, losing 2.31 per cent amid heightened concerns that another multi-billion dollar public offering will again tie up market funds, dealers said.
China's securities regulator said Friday it would review China Railway Engineering Corp's initial public offering (IPO) plan on Nov 5, the latest in a slew of firms seeking to tap the stock markets for funds.
The Shanghai Composite Index, which covers both A and B shares, closed down 136.48 points or 2.31 per cent at 5,777.81 on turnover of 106.03 billion yuan (S$20.2 billion).
KUALA LUMPUR
Malaysian share prices closed down 0.8 per cent on Friday after a steep sell-off in New York on concerns for the US economy and amid historically high oil prices, dealers said.
But, they added, the key index managed to end off its lows on a rebound in plantation stocks and resilience in small caps.
The Kuala Lumpur Composite Index closed down 11.68 points at 1,397.48, off a low of 1,385.85. -- REUTERS, AFP
HONG KONG - ASIAN stocks suffered heavy losses Friday, mirroring sharp falls on other global markets amid fears that the fallout from the US subprime loan crisis is far from over.
Markets around the region fell by as much as three percent after drops in New York and Europe, as renewed worries about the fallout from US mortgage and credit woes erased earlier euphoria over a Federal Reserve interest rate cut.
US falls came after oil giant ExxonMobil missed Wall Street profit forecasts and analysts at CIBC World Markets downgraded Citigroup and Bank of America, the two biggest US banks, on worries about a credit squeeze.
CIBC said Citigroup needed to raise US$30 billion(S$ 43.5 billion) in capital over the near-term, also dampening the market sentiment.
Signs that major US banks may be more severely affected by the subprime loan crisis than previously expected took a heavy toll on financial stocks.
A surge in crude oil prices above US$96 dollars a barrel for the first time Thursday only added to the market's nervousness despite a later pullback.
TOKYO
Japanese share prices closed down 2.09 per cent on Friday, hit by heavy losses on Wall Street as investors fretted that the fallout from recent credit market turmoil is far from over, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index dropped 352.92 points to 16,517.48, reflecting sharp falls across Asia.
The broader Topix index of all first-section shares fell 35.61 points or 2.18 percent to 1,600.17.
HONG KONG
Hong Kong share prices closed sharply lower Friday, down 3.3 per cent, as steep falls on Wall Street prompted investors to sell-down the benchmark index, dealers said.
The Hang Seng Index ended the day's trading 1,024.54 points down at 30,468.34.
SHANGHAI
Chinese share prices closed sharply lower Friday, losing 2.31 per cent amid heightened concerns that another multi-billion dollar public offering will again tie up market funds, dealers said.
China's securities regulator said Friday it would review China Railway Engineering Corp's initial public offering (IPO) plan on Nov 5, the latest in a slew of firms seeking to tap the stock markets for funds.
The Shanghai Composite Index, which covers both A and B shares, closed down 136.48 points or 2.31 per cent at 5,777.81 on turnover of 106.03 billion yuan (S$20.2 billion).
KUALA LUMPUR
Malaysian share prices closed down 0.8 per cent on Friday after a steep sell-off in New York on concerns for the US economy and amid historically high oil prices, dealers said.
But, they added, the key index managed to end off its lows on a rebound in plantation stocks and resilience in small caps.
The Kuala Lumpur Composite Index closed down 11.68 points at 1,397.48, off a low of 1,385.85. -- REUTERS, AFP
History Buffs Want More Old S'pore Buildings Saved
Source : The Straits Times, Nov 2, 2007
More than 6,500 old but architecturally and historically significant buildings still have a place on Singapore's skyline, thanks to much-praised conservation efforts.
But now that the dust has settled, the question is: What's next on the 'to-save' list?
The issue is a timely one as the Urban Redevelopment Authority (URA) announced last month that it was selecting another 228 buildings in the Katong area for conservation.
The buildings are mostly terrace houses and shophouses built in the 1920s and 1930s.
And that big figure comes on top of 700 buildings that are already under conservation orders in the East Coast area.
What with that number going on the long list of buildings that will be treasured, and the fact that the URA's conservation programme is now 20 years old, Singaporeans could be excused from thinking that all the old buildings worth conserving have now been conserved.
But history and architecture experts would have you know that there is still a job to be done.
Singapore's oldest HDB flats
WRAPPED around a bend in Stirling Road, between the Mujahidin Mosque and Queenstown Sports Complex, stand three unassuming but special blocks of flats.
At 47 years old, Blocks 45, 48 and 49 Stirling Road are the oldest blocks of Housing Board flats in Singapore.
They marked the beginning of this revolution in public housing, which has become a quintessential Singapore icon.
Architecturally, the buildings may not look like much, but given their genesis and significance, this is not to be expected and should not compromise their worthiness for conservation as historic landmarks of Singapore's public housing.
Read the full story in Saturday's edition of The Straits Times Life!.
More than 6,500 old but architecturally and historically significant buildings still have a place on Singapore's skyline, thanks to much-praised conservation efforts.
But now that the dust has settled, the question is: What's next on the 'to-save' list?
The issue is a timely one as the Urban Redevelopment Authority (URA) announced last month that it was selecting another 228 buildings in the Katong area for conservation.
The buildings are mostly terrace houses and shophouses built in the 1920s and 1930s.
And that big figure comes on top of 700 buildings that are already under conservation orders in the East Coast area.
What with that number going on the long list of buildings that will be treasured, and the fact that the URA's conservation programme is now 20 years old, Singaporeans could be excused from thinking that all the old buildings worth conserving have now been conserved.
But history and architecture experts would have you know that there is still a job to be done.
Singapore's oldest HDB flats
WRAPPED around a bend in Stirling Road, between the Mujahidin Mosque and Queenstown Sports Complex, stand three unassuming but special blocks of flats.
At 47 years old, Blocks 45, 48 and 49 Stirling Road are the oldest blocks of Housing Board flats in Singapore.
They marked the beginning of this revolution in public housing, which has become a quintessential Singapore icon.
Architecturally, the buildings may not look like much, but given their genesis and significance, this is not to be expected and should not compromise their worthiness for conservation as historic landmarks of Singapore's public housing.
Read the full story in Saturday's edition of The Straits Times Life!.
Ease Jams, Commence Work On Bukit Timah Line
Source : The Straits Times, Nov 2, 2007
I WATCHED from Sherwood Tower the daily morning traffic jam along Jalan Anak Bukit in the direction of Clementi and Dunearn Road. It is getting from bad to worse, even with the opening of the underpass along Jalan Anak Bukit and the flyover at King Albert Park.
The present road network linking the north to the Central Business District (CBD) would not be able to take the heavy road traffic in the coming years without serious loss of productivity and resources, e.g., petrol at US$90 per barrel.
It takes at least an hour to travel by bus, not counting waiting time at bus stop, from Bukit Panjang to the CBD. Car owners would not abandon their cars to take a bus to work every day unless there is a better alternative.
The Government's plan to have the Bukit Timah Line completed in 2015 should be brought forward and construction should commence immediately. In my opinion, even this would be too late for it will take at least five years to complete the project.
With the millions collected from Certificates of Entitlement, Electronic Road Pricing and road tax, the Government can afford to commence construction without waiting for construction costs to fall after the completion of the two integrated resorts.
Yap Chian Heng
I WATCHED from Sherwood Tower the daily morning traffic jam along Jalan Anak Bukit in the direction of Clementi and Dunearn Road. It is getting from bad to worse, even with the opening of the underpass along Jalan Anak Bukit and the flyover at King Albert Park.
The present road network linking the north to the Central Business District (CBD) would not be able to take the heavy road traffic in the coming years without serious loss of productivity and resources, e.g., petrol at US$90 per barrel.
It takes at least an hour to travel by bus, not counting waiting time at bus stop, from Bukit Panjang to the CBD. Car owners would not abandon their cars to take a bus to work every day unless there is a better alternative.
The Government's plan to have the Bukit Timah Line completed in 2015 should be brought forward and construction should commence immediately. In my opinion, even this would be too late for it will take at least five years to complete the project.
With the millions collected from Certificates of Entitlement, Electronic Road Pricing and road tax, the Government can afford to commence construction without waiting for construction costs to fall after the completion of the two integrated resorts.
Yap Chian Heng
Why Resale-Flat Buyer Didn't Effect New Fire Policy
Source : The Straits Times, Nov 2, 2007
I REFER to the letter by Mr Dons Joshua Goh Chun Hwee, 'Why wasn't fire coverage renewed for five years?' (ST, Oct 16).
American Home Assurance Company, Singapore (AHAC) is the appointed insurer for the HDB fire-insurance scheme. This scheme ensures prompt reinstatement of flats affected by fire and helps to ease the financial burden of HDB lessees by offering fire insurance at affordable premiums.
AHAC fire insurance insures the flat and not the owner; a new flat owner could obtain the original insurance certificate from the previous owner and continue the cover till the expiry of the policy. For the new owner who has not obtained the original certificate of insurance from the previous owner, a reprint of the certificate could be obtained at AHAC counters located at HDB Hub for a fee, depending on the flat type.
Mr Goh purchased his resale flat last December which at that time had fire insurance purchased by the previous owner and expiring only this month. The policy had more than six months' coverage to go and hence he obtained a reprint of the certificate of insurance instead of effecting a new policy. The fee collected was for the reprint and administrative charges incurred in processing the request.
AHAC is committed to delivering excellent service to our customers and it is one of our top priorities to address Mr Goh's concerns. Unfortunately, the matter was not brought to our attention prior to the publication of his letter.
Mr Goh has since contacted our company and we have resolved the matter.
Koh Hoe Shin
Vice-President
Personal Lines Department
American Home Assurance Company, Singapore
I REFER to the letter by Mr Dons Joshua Goh Chun Hwee, 'Why wasn't fire coverage renewed for five years?' (ST, Oct 16).
American Home Assurance Company, Singapore (AHAC) is the appointed insurer for the HDB fire-insurance scheme. This scheme ensures prompt reinstatement of flats affected by fire and helps to ease the financial burden of HDB lessees by offering fire insurance at affordable premiums.
AHAC fire insurance insures the flat and not the owner; a new flat owner could obtain the original insurance certificate from the previous owner and continue the cover till the expiry of the policy. For the new owner who has not obtained the original certificate of insurance from the previous owner, a reprint of the certificate could be obtained at AHAC counters located at HDB Hub for a fee, depending on the flat type.
Mr Goh purchased his resale flat last December which at that time had fire insurance purchased by the previous owner and expiring only this month. The policy had more than six months' coverage to go and hence he obtained a reprint of the certificate of insurance instead of effecting a new policy. The fee collected was for the reprint and administrative charges incurred in processing the request.
AHAC is committed to delivering excellent service to our customers and it is one of our top priorities to address Mr Goh's concerns. Unfortunately, the matter was not brought to our attention prior to the publication of his letter.
Mr Goh has since contacted our company and we have resolved the matter.
Koh Hoe Shin
Vice-President
Personal Lines Department
American Home Assurance Company, Singapore
Condo Owners Reject Dog Controls
Source : The Straits Times, Nov 2, 2007
Richmond Park management committee wanted animals carried in crates and 'dog licence' payable to MC
THE management corporation of the Richmond Park condominium wanted some unusual powers: Among them, the right to co-broke the rent and sale of units.
It also had some strong measures in mind for residents who owned dogs. For instance, it wanted owners to transport their pets in carrying cases within the compound, 'trolley cages' for bigger mutts, and even licensing fees.
But at an annual general meeting held over the weekend, the residents of the Bideford Road condo shot right back: No, they said.
They amended the rules on dogs, and sent the other proposed by-laws giving the MC more powers back to the drawing board.
The proposed rules were controversial enough for the AGM to draw more residents than usual: About 30 per cent of the condo's owner-residents, about twice the number who turned up at the last such meeting, showed up, said a resident who was present.
MC chairman David Tan, who had drafted the proposals, told The Straits Times last week the dog rules came about because the condo had long put up with irresponsible dog owners who do not pick up their pets' droppings.
But the residents disagreed and rejected the rule about transporting dogs in crates while in the condo's common areas, and also threw out the proposed monthly 'dog licence' payable to the MC - $30 for small dogs and $50 for large ones.
Instead, new proposals were raised and passed. They include designated dustbins for the disposal of dog faeces and a designated lift for owners to travel with their pets.
The co-broking proposal where owners would get a 20 per cent discount on their monthly maintenance fees - in exchange for giving the MC the power to help rent or sell their flats for a slice of the profits - was withdrawn.
Sources told The Straits Times the MC will re-draft this so it becomes a voluntary, rather than mandatory, scheme.
MC chairman Dr Tan - who had drafted these proposals - was not contactable despite repeated attempts.
Residents The Straits Times spoke to said they were relieved enough people turned up to say 'no' at the AGM.
One resident, who has lived in the condo for more than five years, said she would have had to find another home if the draconian dog rules had been passed.
Richmond Park management committee wanted animals carried in crates and 'dog licence' payable to MC
THE management corporation of the Richmond Park condominium wanted some unusual powers: Among them, the right to co-broke the rent and sale of units.
It also had some strong measures in mind for residents who owned dogs. For instance, it wanted owners to transport their pets in carrying cases within the compound, 'trolley cages' for bigger mutts, and even licensing fees.
But at an annual general meeting held over the weekend, the residents of the Bideford Road condo shot right back: No, they said.
They amended the rules on dogs, and sent the other proposed by-laws giving the MC more powers back to the drawing board.
The proposed rules were controversial enough for the AGM to draw more residents than usual: About 30 per cent of the condo's owner-residents, about twice the number who turned up at the last such meeting, showed up, said a resident who was present.
MC chairman David Tan, who had drafted the proposals, told The Straits Times last week the dog rules came about because the condo had long put up with irresponsible dog owners who do not pick up their pets' droppings.
But the residents disagreed and rejected the rule about transporting dogs in crates while in the condo's common areas, and also threw out the proposed monthly 'dog licence' payable to the MC - $30 for small dogs and $50 for large ones.
Instead, new proposals were raised and passed. They include designated dustbins for the disposal of dog faeces and a designated lift for owners to travel with their pets.
The co-broking proposal where owners would get a 20 per cent discount on their monthly maintenance fees - in exchange for giving the MC the power to help rent or sell their flats for a slice of the profits - was withdrawn.
Sources told The Straits Times the MC will re-draft this so it becomes a voluntary, rather than mandatory, scheme.
MC chairman Dr Tan - who had drafted these proposals - was not contactable despite repeated attempts.
Residents The Straits Times spoke to said they were relieved enough people turned up to say 'no' at the AGM.
One resident, who has lived in the condo for more than five years, said she would have had to find another home if the draconian dog rules had been passed.
$730k View
Source : The Straits Times, Nov 2, 2007
5-room HDB flat in Marine Parade sold for record sum
AN UNRENOVATED 32-year-old five-room flat in Marine Parade, on a high level with a full sea view, has been sold for $730,000 - a new record for an HDB flat.
VIEW THAT CLINCHED IT: The deal for the 32-year-old five-room flat in Marine Parade, which offers a stunning view of East Coast Park and the sea, was inked in half a day on Oct 13. The buyer is believed to be in his 50s and an owner of more than one property. -- ST PHOTO: DESMOND LIM
This trumps the previous record of $720,000, set in June by a fairly new five-roomer in Kim Tian Place.
The buyer, who declined to be interviewed, did not bother to wait for the flat's valuation when he negotiated the price down from $750,000, said the seller's property agent, Ms Joyce Lau, of agency ERA.
She said the deal was inked in half a day on Oct 13. The buyer viewed the 18th-floor flat in the daytime and confirmed the buy that night.
Mr Ken Ng, the 48-year-old son of the flat's seller, said the flat has been vacant since his parents moved out to live with him some four years ago. His father agreed to sell recently.
'I actually like the flat. I jacked up the price so high, thinking it is a crazy price. If nobody wants, I can withdraw it,' he told The Straits Times.
'But the first person who saw it liked the full sea view and wanted to buy it.'
The flat is in a prized point block with four flats per level.
The record sale comes as HDB resale prices have registered significant increases in a buoyant property market.
The HDB market has also benefited from spill-over demand. The dramatic spate of collective sales in the past year has created a pool of eager buyers, some of whom are downgrading to HDB flats.
The buyer of the run-down Marine Parade flat is believed to be in his 50s and an owner of more than one property.
It is understood that he may use the flat as his retirement home. He will have to pay $130,000 in cash for his flat, which is valued at $600,000.
This is well above the median cash-over-valuation sum of $85,000 for Marine Parade in the third quarter.
In the third quarter, the median resale price of five-room flats in the same town was at $560,000 - the second highest median price for the flat type after Queenstown.
But deals have been done at prices of up to $710,000.
Last month, a 30-year-old high-floor five-room Marine Drive flat sold for $710,000, while another five-roomer in the same block sold for $695,000 in September.
PropNex's chief executive Mohamed Ismail said the difference lies in the lifestyle a home in the area offers. 'It's not too congested, near town and East Coast Park.'
But paying record prices or large cash amounts for it will not become a norm.
'Those who pay such large cash amounts are private property downgraders or people who have profited from en bloc sales,' said Mr Ismail.
'Typical HDB buyers cannot afford such prices.'
5-room HDB flat in Marine Parade sold for record sum
AN UNRENOVATED 32-year-old five-room flat in Marine Parade, on a high level with a full sea view, has been sold for $730,000 - a new record for an HDB flat.
VIEW THAT CLINCHED IT: The deal for the 32-year-old five-room flat in Marine Parade, which offers a stunning view of East Coast Park and the sea, was inked in half a day on Oct 13. The buyer is believed to be in his 50s and an owner of more than one property. -- ST PHOTO: DESMOND LIMThis trumps the previous record of $720,000, set in June by a fairly new five-roomer in Kim Tian Place.
The buyer, who declined to be interviewed, did not bother to wait for the flat's valuation when he negotiated the price down from $750,000, said the seller's property agent, Ms Joyce Lau, of agency ERA.
She said the deal was inked in half a day on Oct 13. The buyer viewed the 18th-floor flat in the daytime and confirmed the buy that night.
Mr Ken Ng, the 48-year-old son of the flat's seller, said the flat has been vacant since his parents moved out to live with him some four years ago. His father agreed to sell recently.
'I actually like the flat. I jacked up the price so high, thinking it is a crazy price. If nobody wants, I can withdraw it,' he told The Straits Times.
'But the first person who saw it liked the full sea view and wanted to buy it.'
The flat is in a prized point block with four flats per level.
The record sale comes as HDB resale prices have registered significant increases in a buoyant property market.
The HDB market has also benefited from spill-over demand. The dramatic spate of collective sales in the past year has created a pool of eager buyers, some of whom are downgrading to HDB flats.
The buyer of the run-down Marine Parade flat is believed to be in his 50s and an owner of more than one property.
It is understood that he may use the flat as his retirement home. He will have to pay $130,000 in cash for his flat, which is valued at $600,000.
This is well above the median cash-over-valuation sum of $85,000 for Marine Parade in the third quarter.
In the third quarter, the median resale price of five-room flats in the same town was at $560,000 - the second highest median price for the flat type after Queenstown.
But deals have been done at prices of up to $710,000.
Last month, a 30-year-old high-floor five-room Marine Drive flat sold for $710,000, while another five-roomer in the same block sold for $695,000 in September.
PropNex's chief executive Mohamed Ismail said the difference lies in the lifestyle a home in the area offers. 'It's not too congested, near town and East Coast Park.'
But paying record prices or large cash amounts for it will not become a norm.
'Those who pay such large cash amounts are private property downgraders or people who have profited from en bloc sales,' said Mr Ismail.
'Typical HDB buyers cannot afford such prices.'
Bravo Buys Makeway View For $162.8m In En Bloc Sale
Source : The Business Times, November 2, 2007
It plans to build about 70-80 loft apartments on the freehold site
BRAVO Building Construction group, which bought Tulip Garden and Pender Court a few months back, has now clinched Makeway View in the Newton area for $162.8 million through a collective sale.
Launch plan: Makeway View is on a freehold site of 41,582 sq ft that is designated for residential use with a 2.8 plot ratio under Master Plan 2003. Bravo says its project on the site may be ready for launch around Q3 or Q4 next year
The price works out to a land cost of $1,583 per square foot (psf) of potential gross floor area including an estimated $21.5 million development charge (DC).
The breakeven cost for a new project on the site will be about $2,100 psf, a Bravo spokeswoman said.
'We're planning about 70-80 loft apartments, with sizes ranging from 1,500 sq ft to 1,800 sq ft,' she said. 'The project, which could be about 23-24 storeys high, may be ready for launch around Q3 or Q4 next year.'
Makeway View is on a freehold site of 41,582 sq ft that is designated for residential use with a 2.8 plot ratio under Master Plan 2003.
Knight Frank brokered the sale through a private treaty after a tender that closed last month.
The deal is subject to approval by the Strata Titles Board.
The buyer is Makeway Residences Pte Ltd, which is related to Bravo Building Construction.
'At the purchase price of $162.8 million, Makeway View owners will receive gross sale proceeds of about $3.7 million to $10.4 million per unit,' Knight Frank said yesterday.
Makeway View's existing 32 apartments and penthouses range in size from 1,442 sq ft to 5,307 sq ft.
Bravo's spokeswoman also told BT the group plans to develop the freehold Pender Court site off West Coast Highway, which it bought in July, into 48 cluster terrace housing units.
'We're in discussions with an overseas fund which is keen on buying the entire development for about $180 million, or about $3.8 million per unit on average,' she said. 'Each house will come with a private pool.'
Bravo's acquisition of Tulip Garden, also in July, was for $516 million or $1,018 psf per plot ratio. No DC is payable.
Bravo is a five-year-old property and construction outfit that has bought more than a dozen sites in Singapore since September last year, including Castle Court on Changi Road, Regent Court in Serangoon and Koon Seng House in the Still Road area.
It plans to build about 70-80 loft apartments on the freehold site
BRAVO Building Construction group, which bought Tulip Garden and Pender Court a few months back, has now clinched Makeway View in the Newton area for $162.8 million through a collective sale.
Launch plan: Makeway View is on a freehold site of 41,582 sq ft that is designated for residential use with a 2.8 plot ratio under Master Plan 2003. Bravo says its project on the site may be ready for launch around Q3 or Q4 next yearThe price works out to a land cost of $1,583 per square foot (psf) of potential gross floor area including an estimated $21.5 million development charge (DC).
The breakeven cost for a new project on the site will be about $2,100 psf, a Bravo spokeswoman said.
'We're planning about 70-80 loft apartments, with sizes ranging from 1,500 sq ft to 1,800 sq ft,' she said. 'The project, which could be about 23-24 storeys high, may be ready for launch around Q3 or Q4 next year.'
Makeway View is on a freehold site of 41,582 sq ft that is designated for residential use with a 2.8 plot ratio under Master Plan 2003.
Knight Frank brokered the sale through a private treaty after a tender that closed last month.
The deal is subject to approval by the Strata Titles Board.
The buyer is Makeway Residences Pte Ltd, which is related to Bravo Building Construction.
'At the purchase price of $162.8 million, Makeway View owners will receive gross sale proceeds of about $3.7 million to $10.4 million per unit,' Knight Frank said yesterday.
Makeway View's existing 32 apartments and penthouses range in size from 1,442 sq ft to 5,307 sq ft.
Bravo's spokeswoman also told BT the group plans to develop the freehold Pender Court site off West Coast Highway, which it bought in July, into 48 cluster terrace housing units.
'We're in discussions with an overseas fund which is keen on buying the entire development for about $180 million, or about $3.8 million per unit on average,' she said. 'Each house will come with a private pool.'
Bravo's acquisition of Tulip Garden, also in July, was for $516 million or $1,018 psf per plot ratio. No DC is payable.
Bravo is a five-year-old property and construction outfit that has bought more than a dozen sites in Singapore since September last year, including Castle Court on Changi Road, Regent Court in Serangoon and Koon Seng House in the Still Road area.
Two New Day-Surgery Centres To Cut Waiting Time
Source : The Straits Times, Nov 1, 2007
Patients going for day surgery now have a wider option - and a shorter waiting time.
Two new day-surgery centres were launched last month, one fully operational and the other which will open its doors next March.
They will compliment hospitals by providing an area where patients can walk in, have their surgery done, consult their and walk out on the same day.
'We do not want to overhwhelm hospital theatres with day surgery cases but instead use them for those who require more intensive care and need to stay there,' said Dr Swee Yong Peng, divisional vice-president of surgical services in Parkway Health.
Parkway Day Surgery and Medical Centre, located at Balestier Road, opened its doors to the public on Sept 28.
Facilities include a full day ward of 14 beds, four day surgery operating theatres, an endoscopy centre and a pharmacy, which occupy five floors. Average prices for surgeries range from $1,000 to $3,000.
About five to ten surgeries and five endoscopies are performed daily,ith the most common being cataract, breast lump removal and endoscopies.
On Thursday, Far East Organisation, together with 16 specialist doctors in the private practice, launched Novena Surgery, an $8 million day care surgery facility occupying the eighth floor of newly built Novena Medical Centre.
The property giant also announced its interest to build a private hospital on a 1.7HA site in Novena that was put up for tender on Monday.
With Singapore set to attract one million foreign patients by 2012, Novena Surgery aims to cater to some of them.
'No point having a million people coming in and you cannot support these numbers,' said Associate Professor Lim Beng Hai, chairman of Novena Surgery.
Novena Surgery will have three operating theatres, two endoscopy suites and private rooms for patients to recover after the surgery.
A range of surgical specialties like endoscopy, eye surgery, hand surgery and reconstructive surgery are offered at the centre.
Patients going for day surgery now have a wider option - and a shorter waiting time.
Two new day-surgery centres were launched last month, one fully operational and the other which will open its doors next March.
They will compliment hospitals by providing an area where patients can walk in, have their surgery done, consult their and walk out on the same day.
'We do not want to overhwhelm hospital theatres with day surgery cases but instead use them for those who require more intensive care and need to stay there,' said Dr Swee Yong Peng, divisional vice-president of surgical services in Parkway Health.
Parkway Day Surgery and Medical Centre, located at Balestier Road, opened its doors to the public on Sept 28.
Facilities include a full day ward of 14 beds, four day surgery operating theatres, an endoscopy centre and a pharmacy, which occupy five floors. Average prices for surgeries range from $1,000 to $3,000.
About five to ten surgeries and five endoscopies are performed daily,ith the most common being cataract, breast lump removal and endoscopies.
On Thursday, Far East Organisation, together with 16 specialist doctors in the private practice, launched Novena Surgery, an $8 million day care surgery facility occupying the eighth floor of newly built Novena Medical Centre.
The property giant also announced its interest to build a private hospital on a 1.7HA site in Novena that was put up for tender on Monday.
With Singapore set to attract one million foreign patients by 2012, Novena Surgery aims to cater to some of them.
'No point having a million people coming in and you cannot support these numbers,' said Associate Professor Lim Beng Hai, chairman of Novena Surgery.
Novena Surgery will have three operating theatres, two endoscopy suites and private rooms for patients to recover after the surgery.
A range of surgical specialties like endoscopy, eye surgery, hand surgery and reconstructive surgery are offered at the centre.
Far East Opening $8m Outpatient Clinic At Novena
Source : The Business Times, November 2, 2007
Project expected to break even within a year
FAR East Organization and a group of doctors are investing $8 million to set up a clinic called Novena Surgery, in response to what they say is an increasing need for outpatient surgery for Singaporeans and international patients.
Patients will be able to use touch-screen monitors in the wards to make requests from nurses.
Lim Beng Hai, director and senior consultant hand surgeon for the Centre for Hand and Reconstructive Microsurgery, Singapore, who is chairman of Novena Surgery, said that many local patients were opting for surgery as outpatients.
'This demand is augmented by the rising number of international patients seeking treatment in Singapore,' he said.
Novena Surgery, which takes up 8,000 sq ft, will be located on the eighth floor of the $257 million Novena Medical Center. It is expected to open its doors on March 1 next year.
It will be used by doctors practising at the centre and those from other hospitals, medical centres and clinics in the area.
Novena Surgery, which aims to provide ambulatory care and surgery facilities, will have three operating theatres and two endoscopy suites, with private rooms and common areas for patients to recover after surgery.
The facility will offer surgical specialties including eye surgery, ear-nose- throat and obstetrics and gynaecology. Surgeons can look forward to a concierge service, which will arrange for patients to be picked up and arrive on time for surgery.
Patients will be able to use touch-screen monitors in the wards to make requests from nurses, to access the Internet and to send e-mail.
The board of directors is expecting Novena Surgery to break even in the space of a year, and bring in annual revenues of more than $10 million after three years.
The number of cases per day could reach a maximum of 100, they said at a press conference.
Heah Sieu Min, who is on the board of directors, described Novena Surgery as a 'seamless, convenient service which will be value for money'.
GL Yap, executive director of Far East Organization, said that Far East would be interested in tendering a bid for the hospital site at Novena Terrace/Ir- rawaddy Road launched this week by the Urban Redevelopment Authority.
Project expected to break even within a year
FAR East Organization and a group of doctors are investing $8 million to set up a clinic called Novena Surgery, in response to what they say is an increasing need for outpatient surgery for Singaporeans and international patients.Patients will be able to use touch-screen monitors in the wards to make requests from nurses.
Lim Beng Hai, director and senior consultant hand surgeon for the Centre for Hand and Reconstructive Microsurgery, Singapore, who is chairman of Novena Surgery, said that many local patients were opting for surgery as outpatients.
'This demand is augmented by the rising number of international patients seeking treatment in Singapore,' he said.
Novena Surgery, which takes up 8,000 sq ft, will be located on the eighth floor of the $257 million Novena Medical Center. It is expected to open its doors on March 1 next year.
It will be used by doctors practising at the centre and those from other hospitals, medical centres and clinics in the area.
Novena Surgery, which aims to provide ambulatory care and surgery facilities, will have three operating theatres and two endoscopy suites, with private rooms and common areas for patients to recover after surgery.
The facility will offer surgical specialties including eye surgery, ear-nose- throat and obstetrics and gynaecology. Surgeons can look forward to a concierge service, which will arrange for patients to be picked up and arrive on time for surgery.
Patients will be able to use touch-screen monitors in the wards to make requests from nurses, to access the Internet and to send e-mail.
The board of directors is expecting Novena Surgery to break even in the space of a year, and bring in annual revenues of more than $10 million after three years.
The number of cases per day could reach a maximum of 100, they said at a press conference.
Heah Sieu Min, who is on the board of directors, described Novena Surgery as a 'seamless, convenient service which will be value for money'.
GL Yap, executive director of Far East Organization, said that Far East would be interested in tendering a bid for the hospital site at Novena Terrace/Ir- rawaddy Road launched this week by the Urban Redevelopment Authority.
Citi in $220m move to Changi Business Park
Source : The Business Times, November 2, 2007
New premises will house back-office operations; can take up to 4,000 staff
SOARING rents downtown are pushing multinationals to house their back-office support operations away from central areas.
Stomping ground: The two office blocks will have 400,000 sq ft of space
And Citi is spending $220 million to consolidate its back-office operations at Changi Business Park - the first bank to do so at this location.
Previously the bank's support functions were spread over its locations at Tampines, downtown Millennia and Centennial towers and Capital Square.
Citi said it is giving up its space at Tampines and consolidating all support services at Changi. Without divulging the rent, it said the investment includes capital, relocation, rental and operating costs.
'We're scaling out,' Citi's Singapore country officer and head of Asean markets & banking Piyush Gupta said yesterday.
'Instead of paying $15 per sq ft in the central area, we build scale without having to pay costs in the Central Business District.'
Office rents have surged 40.7 per cent so far this year, rising 14.8 per cent in the third quarter alone.
In the Urban Redevelopment Authority's prime office category - which includes Raffles Place and Marina Centre and Orchard Planning Area - the median rent for new leases was $11.89 per sq ft (psf) per month in Q3, up from $10.33 in Q2. In the general category, which makes up 80 per cent of office space, the median rent for Q3 was $5.29 psf a month, up from $4.60 in Q2.
The support units of the local banks are also located out of town. OCBC and United Overseas Bank are at Tampines and DBS is at Chai Chee.
Citi's new premises at Changi - two built-to-suit office buildings with a total of 400,000 sq feet - can house 4,000 employees, representing almost half of Citi's total staff strength of 8,500 in Singapore. About 1,100 staff will move to Changi in Q1 2009 and 2,000 more in Q4 2010.
Citi will locate its International Technology Office, Markets & Banking Asia-Pacific Operations & Technology and Asia Pacific Technology Infrastructure divisions at Changi.
These divisions are responsible for activities like transaction services, funds administration and technology functions. These divisions support not just Citi's Singapore business but that in the region and globally, Mr Gupta said.
For example, the technology division supports international consumer business in more than 40 countries, with Singapore serving as global headquarters.
The transaction services processing division serves corporate clients in 16 countries. And the technology infrastructure division provides desktop, voice and network services to the region.
'The move will allow us to consolidate our operations, technology and support services under one roof, providing for greater synergies, as well as catering for future business growth,' Mr Gupta said.
New premises will house back-office operations; can take up to 4,000 staff
SOARING rents downtown are pushing multinationals to house their back-office support operations away from central areas.
Stomping ground: The two office blocks will have 400,000 sq ft of spaceAnd Citi is spending $220 million to consolidate its back-office operations at Changi Business Park - the first bank to do so at this location.
Previously the bank's support functions were spread over its locations at Tampines, downtown Millennia and Centennial towers and Capital Square.
Citi said it is giving up its space at Tampines and consolidating all support services at Changi. Without divulging the rent, it said the investment includes capital, relocation, rental and operating costs.
'We're scaling out,' Citi's Singapore country officer and head of Asean markets & banking Piyush Gupta said yesterday.
'Instead of paying $15 per sq ft in the central area, we build scale without having to pay costs in the Central Business District.'
Office rents have surged 40.7 per cent so far this year, rising 14.8 per cent in the third quarter alone.
In the Urban Redevelopment Authority's prime office category - which includes Raffles Place and Marina Centre and Orchard Planning Area - the median rent for new leases was $11.89 per sq ft (psf) per month in Q3, up from $10.33 in Q2. In the general category, which makes up 80 per cent of office space, the median rent for Q3 was $5.29 psf a month, up from $4.60 in Q2.
The support units of the local banks are also located out of town. OCBC and United Overseas Bank are at Tampines and DBS is at Chai Chee.
Citi's new premises at Changi - two built-to-suit office buildings with a total of 400,000 sq feet - can house 4,000 employees, representing almost half of Citi's total staff strength of 8,500 in Singapore. About 1,100 staff will move to Changi in Q1 2009 and 2,000 more in Q4 2010.
Citi will locate its International Technology Office, Markets & Banking Asia-Pacific Operations & Technology and Asia Pacific Technology Infrastructure divisions at Changi.
These divisions are responsible for activities like transaction services, funds administration and technology functions. These divisions support not just Citi's Singapore business but that in the region and globally, Mr Gupta said.
For example, the technology division supports international consumer business in more than 40 countries, with Singapore serving as global headquarters.
The transaction services processing division serves corporate clients in 16 countries. And the technology infrastructure division provides desktop, voice and network services to the region.
'The move will allow us to consolidate our operations, technology and support services under one roof, providing for greater synergies, as well as catering for future business growth,' Mr Gupta said.
Citi Pays $220m For Changi Space Amid Soaring Rents
Source : The Straits Times, Nov 2, 2007
CITIGROUP is paying $220 million to lease two new custom-built buildings in Changi Business Park that will eventually house up to 4,000 operational and backroom staff.
The global financial services group, which aims to grow in Singapore, said the new premises will help consolidate its operations at a site well away from soaring prime office rents.
OUTSIDE THE CITY: Citigroup will lease the two custom-built buildings, sited in an industrial area near the Singapore Expo, until 2016 and hopes to create a fun, eco-friendly, campus-like workplace there. -- PHOTO: CITIGROUP
'Singapore continues to migrate into a unique position for Citi's global businesses,' said Mr Piyush Gupta, Citi's head of Asean markets and banking and its country officer for Singapore.
'We want to be a global financial centre but costs are getting out of whack, not just those for people, but those for premises.'
Some prime office rents have nearly tripled in the past three years. Property consultants say there is increasing resistance to the rapid rent rises, with some firms either holding off expansion plans or moving to cheaper spots.
'For a big company like us, to continue scaling out in the centre of the city at $15 per sq ft (psf) doesn't make sense,' said Mr Gupta. He did not disclose the rental rate psf at the new premises.
About 1,100 Citi staff will move into the new premises, in an industrial area near the Singapore Expo, when the first phase is ready. Another 2,000 staff are expected in the second phase.
Ascendas Real Estate Investment Trust is developing the buildings starting this month. The first phase is set to be ready in the first quarter of 2009 and the second in late 2010.
The Changi blocks will house Citi's global software innovation team, two of its regional processing centres for securities, banking and transaction services, and its regional technology infrastructure support.
Citi's investment of about $220 million covers the capital, relocation, rental and operating costs. It will lease the buildings until 2016 and has an option to extend its lease for another six years.
Mr Gupta said Citi hopes to create a fun, eco-friendly, campus-like workplace at Changi, with features such as exercise rooms. 'Given today's war for talent, an important part of keeping employees engaged is the work environment,' he said.
The group, which currently occupies one million sq ft of space here, is in six spots; it has prime space in Capital Square and Centennial Tower as well as two Tampines locations.
Citi's space take-up will rise to 1.2 million sq ft when it fills the new space and vacates its Tampines premises.
Citi will be looking at new hires as it expands, but Mr Gupta did not say how many. It employs more than 8,500 people here, up from 7,500 two years ago.
CITIGROUP is paying $220 million to lease two new custom-built buildings in Changi Business Park that will eventually house up to 4,000 operational and backroom staff.The global financial services group, which aims to grow in Singapore, said the new premises will help consolidate its operations at a site well away from soaring prime office rents.
OUTSIDE THE CITY: Citigroup will lease the two custom-built buildings, sited in an industrial area near the Singapore Expo, until 2016 and hopes to create a fun, eco-friendly, campus-like workplace there. -- PHOTO: CITIGROUP'Singapore continues to migrate into a unique position for Citi's global businesses,' said Mr Piyush Gupta, Citi's head of Asean markets and banking and its country officer for Singapore.
'We want to be a global financial centre but costs are getting out of whack, not just those for people, but those for premises.'
Some prime office rents have nearly tripled in the past three years. Property consultants say there is increasing resistance to the rapid rent rises, with some firms either holding off expansion plans or moving to cheaper spots.
'For a big company like us, to continue scaling out in the centre of the city at $15 per sq ft (psf) doesn't make sense,' said Mr Gupta. He did not disclose the rental rate psf at the new premises.
About 1,100 Citi staff will move into the new premises, in an industrial area near the Singapore Expo, when the first phase is ready. Another 2,000 staff are expected in the second phase.
Ascendas Real Estate Investment Trust is developing the buildings starting this month. The first phase is set to be ready in the first quarter of 2009 and the second in late 2010.
The Changi blocks will house Citi's global software innovation team, two of its regional processing centres for securities, banking and transaction services, and its regional technology infrastructure support.
Citi's investment of about $220 million covers the capital, relocation, rental and operating costs. It will lease the buildings until 2016 and has an option to extend its lease for another six years.
Mr Gupta said Citi hopes to create a fun, eco-friendly, campus-like workplace at Changi, with features such as exercise rooms. 'Given today's war for talent, an important part of keeping employees engaged is the work environment,' he said.
The group, which currently occupies one million sq ft of space here, is in six spots; it has prime space in Capital Square and Centennial Tower as well as two Tampines locations.
Citi's space take-up will rise to 1.2 million sq ft when it fills the new space and vacates its Tampines premises.
Citi will be looking at new hires as it expands, but Mr Gupta did not say how many. It employs more than 8,500 people here, up from 7,500 two years ago.
US Rate Cuts Won't Defuse Sub-Prime Mess: 'Mr Yen'
Source : The Business Times, November 2, 2007
Asia, though not much affected so far, must be vigilant
Interest rate cuts by the US Federal Reserve - which have amounted to 75 basis points since Sept 18 - are unlikely to defuse the US sub-prime mortgage crisis, according to the influential economist Eisuke Sakakibara.
Mr Sakakibara: The key issue is the uncertainty surrounding the valuations of sub-prime assets and other structured products held by many financial institutions
Mr Sakakibara, formerly Japan's vice-minister for finance and international affairs and now a professor at Tokyo's Waseda University, also warned that global financial markets are likely to face further bouts of volatility. What we have seen thus far 'is only the tip of the iceberg', he said, adding that the problem will probably linger for 6-18 months.
Speaking at a lunchtime forum organised by newly listed Uni-Asia Finance Corporation, Mr Sakakibara pointed out that interest rate cuts by the Fed were likely to be ineffective in addressing the problems emanating from the US sub-prime mortgage sector because the cost of funding is not the key issue; rather it is the uncertainty surrounding the valuations of sub-prime assets and other structured products held by many financial institutions.
He indicated, however, that the 'superfund' proposed by some major American banks (including Citigroup, Bank of America and JPMorgan) to buy sub-prime assets could be helpful, as might a move to provide government financial support to distressed borrowers, which is being discussed in the US Congress. But such initiatives would take time to work.
Mr Sakakibara, who was Japan's vice-minister for finance during the Asian crisis of 1997/98, cautioned that although Asia has been relatively unaffected by the US sub-prime woes thus far, it needs to be vigilant. He recalled that during the Asian crisis, US policymakers thought that the American economy would be relatively insulated - until they were shocked by the Russian bond default of 1998 and the ensuing collapse of a large hedge fund.
The world economy is highly integrated now, he said, and it is highly possible that the US - still its primary engine - will slow down sharply or even go into recession. In such an event, Asia cannot be unaffected.
While Asian economies are doing well and will account for an increasing share of the global economy, right now, Asian asset markets are 'somewhat bubbly', Mr Sakakibara said. 'The situation in Asia seems too good, and usually a 'too good' situation doesn't last.'
When it does turn, the decline could happen 'very abruptly'.
Of all the Asian markets, China is 'the biggest bubble', Mr Sakakibara added, with both investment and GDP growth expanding at breakneck speed.
Chinese policymakers know they have to tighten monetary policies sooner or later, and a major adjustment in China's asset markets is inevitable, perhaps in 2008, after the Olympics. If China's economy slows down in tandem with the US, that would exacerbate the problems for the global economy, Mr Sakakibara warned.
The economist - who was known as 'Mr Yen' when he was a policymaker because his statements were viewed as affecting currency markets - said that as long as the Bank of Japan is unable to raise interest rates, the Japanese yen will remain undervalued. The bank actually did want to raise rates in September, he added, but refrained from doing so on account of the US sub-prime mortgage problem.
With near-zero interest rates at home, Japanese investors are continuing to seek higher-yielding investments overseas, and while this trend persists the yen will probably continue to trade within the range of 110-115 to the US dollar, he said. But if, owing to some trigger such as a dramatic US slowdown, the outflows from Japan dry up or reverse, the yen would rebound sharply from its 'really cheap' current level, he said.
Asia, though not much affected so far, must be vigilant
Interest rate cuts by the US Federal Reserve - which have amounted to 75 basis points since Sept 18 - are unlikely to defuse the US sub-prime mortgage crisis, according to the influential economist Eisuke Sakakibara.
Mr Sakakibara: The key issue is the uncertainty surrounding the valuations of sub-prime assets and other structured products held by many financial institutionsMr Sakakibara, formerly Japan's vice-minister for finance and international affairs and now a professor at Tokyo's Waseda University, also warned that global financial markets are likely to face further bouts of volatility. What we have seen thus far 'is only the tip of the iceberg', he said, adding that the problem will probably linger for 6-18 months.
Speaking at a lunchtime forum organised by newly listed Uni-Asia Finance Corporation, Mr Sakakibara pointed out that interest rate cuts by the Fed were likely to be ineffective in addressing the problems emanating from the US sub-prime mortgage sector because the cost of funding is not the key issue; rather it is the uncertainty surrounding the valuations of sub-prime assets and other structured products held by many financial institutions.
He indicated, however, that the 'superfund' proposed by some major American banks (including Citigroup, Bank of America and JPMorgan) to buy sub-prime assets could be helpful, as might a move to provide government financial support to distressed borrowers, which is being discussed in the US Congress. But such initiatives would take time to work.
Mr Sakakibara, who was Japan's vice-minister for finance during the Asian crisis of 1997/98, cautioned that although Asia has been relatively unaffected by the US sub-prime woes thus far, it needs to be vigilant. He recalled that during the Asian crisis, US policymakers thought that the American economy would be relatively insulated - until they were shocked by the Russian bond default of 1998 and the ensuing collapse of a large hedge fund.
The world economy is highly integrated now, he said, and it is highly possible that the US - still its primary engine - will slow down sharply or even go into recession. In such an event, Asia cannot be unaffected.
While Asian economies are doing well and will account for an increasing share of the global economy, right now, Asian asset markets are 'somewhat bubbly', Mr Sakakibara said. 'The situation in Asia seems too good, and usually a 'too good' situation doesn't last.'
When it does turn, the decline could happen 'very abruptly'.
Of all the Asian markets, China is 'the biggest bubble', Mr Sakakibara added, with both investment and GDP growth expanding at breakneck speed.
Chinese policymakers know they have to tighten monetary policies sooner or later, and a major adjustment in China's asset markets is inevitable, perhaps in 2008, after the Olympics. If China's economy slows down in tandem with the US, that would exacerbate the problems for the global economy, Mr Sakakibara warned.
The economist - who was known as 'Mr Yen' when he was a policymaker because his statements were viewed as affecting currency markets - said that as long as the Bank of Japan is unable to raise interest rates, the Japanese yen will remain undervalued. The bank actually did want to raise rates in September, he added, but refrained from doing so on account of the US sub-prime mortgage problem.
With near-zero interest rates at home, Japanese investors are continuing to seek higher-yielding investments overseas, and while this trend persists the yen will probably continue to trade within the range of 110-115 to the US dollar, he said. But if, owing to some trigger such as a dramatic US slowdown, the outflows from Japan dry up or reverse, the yen would rebound sharply from its 'really cheap' current level, he said.
Sub-Prime Woes Won't Deter S'pore: SM
Source : The Business Times, November 2, 2007
Financial sector devt will continue here; Asia must press on
Singapore is not going to be deterred by the US sub-prime mortgage meltdown and will press on with developing its financial sector, Senior Minister Goh Chok Tong said yesterday.
Asia was relatively untouched by the sub-prime crisis because it has yet to move into sophisticated structured credit financing in a big way, said Mr Goh, who is also chairman of the Monetary Authority of Singapore (MAS).
'However, I believe that Asia should press on with its efforts to develop its capital markets in order to complement the banking system and improve the robustness and efficiency of its financial system.'
Speaking at British banking group Barclays' Asia Forum here, he said Singapore will not relent in its efforts to develop its financial sector.
The island is already a key centre for asset management and trading of financial products like foreign exchange and derivatives, he said. And it is making good progress as a regional centre for innovative equity products, business trusts, exchange-traded funds and project finance.
'We envision Singapore as a centre of excellence for financial training, education and research,' Mr Goh said. 'Hence we are deepening specialists' capabilities in fields such as risk management, financial engineering and actuarial science.'
But market players and regulators must refine their understanding of risk as more sophisticated products are introduced. They should be familiar especially with how shocks can be transmitted through these products, he said.
'We must then develop tools to manage such risks. Much of the recent financial dislocation stemmed from opacity in the distribution and pricing of risks for derivative products.
'The key lessons include the need to monitor off-balance-sheet exposure and institute better management and supervision of liquidity risks.'
SM Goh acknowledged that these are tough issues to tackle because they have to be dealt with without imposing excessive regulatory burdens on market players or stifling financial innovation.
The sub-prime crisis has brought home the reality of growing inter-dependence, he said. Central banks, financial regulators and guardians of the public purse must work in close coordination. 'They must also work with key counterparts in other jurisdictions.'
Another key issue that requires special attention is the setting up of crisis management and resolution frameworks to lessen systemic fallout when financial institutions run into trouble, Mr Goh said.
Financial sector devt will continue here; Asia must press on
Singapore is not going to be deterred by the US sub-prime mortgage meltdown and will press on with developing its financial sector, Senior Minister Goh Chok Tong said yesterday.
Asia was relatively untouched by the sub-prime crisis because it has yet to move into sophisticated structured credit financing in a big way, said Mr Goh, who is also chairman of the Monetary Authority of Singapore (MAS).
'However, I believe that Asia should press on with its efforts to develop its capital markets in order to complement the banking system and improve the robustness and efficiency of its financial system.'
Speaking at British banking group Barclays' Asia Forum here, he said Singapore will not relent in its efforts to develop its financial sector.
The island is already a key centre for asset management and trading of financial products like foreign exchange and derivatives, he said. And it is making good progress as a regional centre for innovative equity products, business trusts, exchange-traded funds and project finance.
'We envision Singapore as a centre of excellence for financial training, education and research,' Mr Goh said. 'Hence we are deepening specialists' capabilities in fields such as risk management, financial engineering and actuarial science.'
But market players and regulators must refine their understanding of risk as more sophisticated products are introduced. They should be familiar especially with how shocks can be transmitted through these products, he said.
'We must then develop tools to manage such risks. Much of the recent financial dislocation stemmed from opacity in the distribution and pricing of risks for derivative products.
'The key lessons include the need to monitor off-balance-sheet exposure and institute better management and supervision of liquidity risks.'
SM Goh acknowledged that these are tough issues to tackle because they have to be dealt with without imposing excessive regulatory burdens on market players or stifling financial innovation.
The sub-prime crisis has brought home the reality of growing inter-dependence, he said. Central banks, financial regulators and guardians of the public purse must work in close coordination. 'They must also work with key counterparts in other jurisdictions.'
Another key issue that requires special attention is the setting up of crisis management and resolution frameworks to lessen systemic fallout when financial institutions run into trouble, Mr Goh said.
Enggor St Tender Attracts Only Two Bids
Source : The Straits Times, Nov 2, 2007
It is the first public tender to close since the deferred payment scheme was scrapped
A WEAK response to the tender for a residential site in Enggor Street suggests market sentiment might have turned cautious, analysts say.
The 99-year leasehold site at Tanjong Pagar had attracted only two bids by the time it closed yesterday, said the Urban Redevelopment Authority.
The top bid for the site was put in by Far East Organization's Bishan Properties at $233.8 million, or $852 per sq ft per plot ratio (psf ppr).
The only other bid was almost half that - $151 million, or $550 psf ppr - and was tendered by First Capital Holdings.
This is the first public tender to close since the Government announced last week that it was scrapping the deferred payment scheme with immediate effect.
The scheme allowed buyers to fork out a down payment of only 10 or 20 per cent when purchasing a new home; the rest came due upon completion, which could sometimes be as long as three years later.
Analysts that The Straits Times spoke to said the Enggor Street bids reflected a more cautious attitude among developers.
Singapore's spectacular property bull-run has, in recent times, seen up to 10 or more bids for public tenders.
'The mood has turned cautious and the bids reflect this,' said Chesterton International's head of research and consultancy, Mr Colin Tan.
CB Richard Ellis (CBRE) Research executive director Li Hiaw Ho said this change could be due to the DPS announcement.
Mr Nicholas Mak, the director of research and consultancy at Knight Frank, agreed.
He pointed to uncertainty in the market, and added that developers are monitoring the behaviour of homebuyers before committing to buying more government land.
However, another reason for the weak response could be the location.
The site, with a gross floor area of 274,522 sq ft, is behind Far East's Icon condo, and is sandwiched between a commercial site and another residential site whose tender closes on Nov 15.
But as it is only a five-minute walk from the Tanjong Pagar MRT station - at the heart of the Central Business District - the site remains attractive, say analysts.
Estimates for the project, launched for sale on Sept 4, indicate that it could provide 330 to 360 small units and a handful of large four-bedroom units, said Mr Mak.
CBRE's Mr Li said the top bid was 'reasonable' and should translate into a break-even price of $1,300 psf for the future project.
Its units are likely to be priced at $1,500 to $2,100 psf when launched for sale - similar to the prices fetched at Icon recently.
It is the first public tender to close since the deferred payment scheme was scrapped
A WEAK response to the tender for a residential site in Enggor Street suggests market sentiment might have turned cautious, analysts say.
The 99-year leasehold site at Tanjong Pagar had attracted only two bids by the time it closed yesterday, said the Urban Redevelopment Authority.
The top bid for the site was put in by Far East Organization's Bishan Properties at $233.8 million, or $852 per sq ft per plot ratio (psf ppr).
The only other bid was almost half that - $151 million, or $550 psf ppr - and was tendered by First Capital Holdings.
This is the first public tender to close since the Government announced last week that it was scrapping the deferred payment scheme with immediate effect.
The scheme allowed buyers to fork out a down payment of only 10 or 20 per cent when purchasing a new home; the rest came due upon completion, which could sometimes be as long as three years later.
Analysts that The Straits Times spoke to said the Enggor Street bids reflected a more cautious attitude among developers.
Singapore's spectacular property bull-run has, in recent times, seen up to 10 or more bids for public tenders.
'The mood has turned cautious and the bids reflect this,' said Chesterton International's head of research and consultancy, Mr Colin Tan.
CB Richard Ellis (CBRE) Research executive director Li Hiaw Ho said this change could be due to the DPS announcement.
Mr Nicholas Mak, the director of research and consultancy at Knight Frank, agreed.
He pointed to uncertainty in the market, and added that developers are monitoring the behaviour of homebuyers before committing to buying more government land.
However, another reason for the weak response could be the location.
The site, with a gross floor area of 274,522 sq ft, is behind Far East's Icon condo, and is sandwiched between a commercial site and another residential site whose tender closes on Nov 15.
But as it is only a five-minute walk from the Tanjong Pagar MRT station - at the heart of the Central Business District - the site remains attractive, say analysts.
Estimates for the project, launched for sale on Sept 4, indicate that it could provide 330 to 360 small units and a handful of large four-bedroom units, said Mr Mak.
CBRE's Mr Li said the top bid was 'reasonable' and should translate into a break-even price of $1,300 psf for the future project.
Its units are likely to be priced at $1,500 to $2,100 psf when launched for sale - similar to the prices fetched at Icon recently.
Life After Deferred Payments Starts With Just 2 Bids For Site Behind Icon
Source : The Business Times, November 2, 2007
Developers could be turning cautious, say analysts
In a sign that developers are turning cautious after the withdrawal of the deferred payment scheme, a state tender for a 99-year residential site at Enggor Street behind the Icon development drew just two bids yesterday.
The higher bid by Far East Organization was 55 per cent above the only other offer by GuocoLand.
Far East offered $233.8 million or about $852 per square foot of potential gross floor area for the 32,681 sq ft plot near Tanjong Pagar MRT Station. GuocoLand's $150.98 million bid works out to around $550 psf per plot ratio.
All eyes are now on a tender for the residential site next-door closing on November 15.
Far East's breakeven cost for a new condo project is understood to be in the $1,340 to $1,400 psf range. That still leaves it with a profit margin based on current prices being achieved at Icon.
Caveats show that mid-level units (on the 20th to 22nd levels) of Icon have been changing hands in recent months in the $1,500 to $1,600 psf range in the subsale market, although units above the 40th storey have been sold by Far East at above $2,000 psf.
The property giant is understood to have sold a penthouse on the 46th floor recently for about $2,300 psf. It is now left with about 30 units in the 646-unit project, and its prices range from $2,000 to $2,400 psf.
For the latest site, called Land Parcel A at Enggor Street, BT understands Far East's scheme is for a 62-storey tower with about 200 apartments - likely to be a spread of unit types like Icon - and is targeting to launch the project around end-2008 or early 2009.
Far East will develop retail space on the project's ground level to be linked to Icon Village, the street-level retail component of its earlier project.
While property market watchers attributed the thin participation at yesterday's tender to developers turning cautious following the withdrawal of the DPS scheme, some were puzzled by the disparity between the two bids. 'Far East has crunched their numbers and know what they are in for, based on their experience with selling Icon units,' a seasoned property consultant said.
However, some analysts could not help but suggest that Far East's significantly higher offer may also have been partly motivated by a need to support property prices, including the values of sites it bid earlier. In September, the property giant clinched a prime condo plot next to Ang Mo Kio Hub for $601 psf per plot ratio - a record for suburban 99-year leasehold condo land. That tender attracted a whopping 14 bids. Another state tender for a condo site next to Kovan MRT Station that closed in early October drew six bids.
'Developers are a bit concerned after the DPS withdrawal. It looks like they've chickened out of this tender,' a seasoned property consultant said, when explaining yesterday's thin bidding.
However, another property consultant, CB Richard Ellis executive director Li Hiaw Ho suggested that another reason for the lukewarm response yesterday could be due to the site's location.
'It is behind Icon and is sandwiched between a commercial site that has been awarded and another residential site (Parcel B) whose tender will close on Nov 15. Nevertheless, the site is about five minutes' walk from Tanjong Pagar MRT Station,' he added.
Developers could be turning cautious, say analysts
In a sign that developers are turning cautious after the withdrawal of the deferred payment scheme, a state tender for a 99-year residential site at Enggor Street behind the Icon development drew just two bids yesterday.
The higher bid by Far East Organization was 55 per cent above the only other offer by GuocoLand.Far East offered $233.8 million or about $852 per square foot of potential gross floor area for the 32,681 sq ft plot near Tanjong Pagar MRT Station. GuocoLand's $150.98 million bid works out to around $550 psf per plot ratio.
All eyes are now on a tender for the residential site next-door closing on November 15.
Far East's breakeven cost for a new condo project is understood to be in the $1,340 to $1,400 psf range. That still leaves it with a profit margin based on current prices being achieved at Icon.
Caveats show that mid-level units (on the 20th to 22nd levels) of Icon have been changing hands in recent months in the $1,500 to $1,600 psf range in the subsale market, although units above the 40th storey have been sold by Far East at above $2,000 psf.
The property giant is understood to have sold a penthouse on the 46th floor recently for about $2,300 psf. It is now left with about 30 units in the 646-unit project, and its prices range from $2,000 to $2,400 psf.
For the latest site, called Land Parcel A at Enggor Street, BT understands Far East's scheme is for a 62-storey tower with about 200 apartments - likely to be a spread of unit types like Icon - and is targeting to launch the project around end-2008 or early 2009.
Far East will develop retail space on the project's ground level to be linked to Icon Village, the street-level retail component of its earlier project.
While property market watchers attributed the thin participation at yesterday's tender to developers turning cautious following the withdrawal of the DPS scheme, some were puzzled by the disparity between the two bids. 'Far East has crunched their numbers and know what they are in for, based on their experience with selling Icon units,' a seasoned property consultant said.
However, some analysts could not help but suggest that Far East's significantly higher offer may also have been partly motivated by a need to support property prices, including the values of sites it bid earlier. In September, the property giant clinched a prime condo plot next to Ang Mo Kio Hub for $601 psf per plot ratio - a record for suburban 99-year leasehold condo land. That tender attracted a whopping 14 bids. Another state tender for a condo site next to Kovan MRT Station that closed in early October drew six bids.
'Developers are a bit concerned after the DPS withdrawal. It looks like they've chickened out of this tender,' a seasoned property consultant said, when explaining yesterday's thin bidding.
However, another property consultant, CB Richard Ellis executive director Li Hiaw Ho suggested that another reason for the lukewarm response yesterday could be due to the site's location.
'It is behind Icon and is sandwiched between a commercial site that has been awarded and another residential site (Parcel B) whose tender will close on Nov 15. Nevertheless, the site is about five minutes' walk from Tanjong Pagar MRT Station,' he added.
Fed Cuts Base Rate By A Quarter-Point To 4.50%
Source : The Business Times, 01 November 2007
WASHINGTON : The Federal Reserve cut US short-term interest rates on Wednesday in a widely anticipated move, saying it had acted amid concerns economic growth will likely cool in coming months.
The central bank said it had cut its federal funds interest rate by a quarter of a percentage point to 4.50 percent. Wall Street shares closed with a rally in the wake of the announcement.
"The pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction," the Fed said in a statement.
The Fed slashed borrowing costs on September 18 by a more dramatic half a percentage point, but the housing slump - one of the worst in decades - has shown no sign of improvement.
"The concerns over housing and credit seem to be dominant for most of the FOMC (Federal Open Market Committee) and their evaluation today," said Carl Tannenbaum, a chief economist at ABN AMRO North America, Inc.
The Fed said policymakers, led by Fed chairman Ben Bernanke, had reduced rates in an effort to keep the world's largest economy growing at a "moderate" pace.
The decision was not unanimous, however, as Thomas Hoenig, the president of the Federal Reserve Bank of Kansas City, voted to keep the fed funds rate pegged at 4.75 percent.
Hoenig was heavily outvoted by nine other policymakers including Bernanke who all wanted to trim borrowing costs.
The central bank's move, its second rate cut in as many months, will also offer some relief to ailing credit markets which have tightened as major commercial banks have sustained hefty losses tied to mortgage-backed securities.
"This action will help to stabilise the financial markets," said Brian Bethune, a US economist at Global Insight.
Merrill Lynch, one of Wall Street's biggest investment banks, announced vast write-downs of almost eight billion dollars last week, mainly related to soured bets on mortgage securities.
"There are still sectors of the credit markets that are not functioning very well. Very simply stated, if capital is not flowing, then firms are more hesitant to make investments," Tannenbaum said.
The fresh rate cut is also likely to be appreciated by consumers who will benefit from lower borrowing costs, but it dealt a fresh blow to an already weakened dollar.
The euro leapt to a record high of 1.45 dollars in the wake of the Fed's move. The dollar's decline on foreign exchange markets makes foreign goods and products, particularly oil, more expensive for Americans to purchase.
The Fed statement cited concerns about rising energy and commodity prices, saying they could renew inflationary pressures, but economists said housing and credit worries outweigh inflation risks for now.
Crude oil prices have rocketed in recent weeks and leapt to a new record high of 94 dollars a barrel in New York on Wednesday amid supply concerns and geopolitical angst.
Although US economic growth has been robust in recent months, economists fear growth could slow markedly in coming months, largely because of the housing downturn.
"As we struggle to find a new equilibrium for home prices are consumers who are seeing the values of their properties diminish going to adjust their spending patterns?" Tannenbaum said.
Sales of existing homes and apartments dived eight percent in September to a seasonally adjusted rate of 5.04 million properties. Sales and home prices have plummeted as a glut of unsold properties has flooded the market.
Other economic gauges are throwing off lacklustre readings despite a government report on Wednesday which showed third-quarter growth accelerated a notch to 3.9 percent.
The central bank also cut its discount rate, the rate it levies on loans to commercial banks, by a quarter of a percentage point to five percent. - AFP/de
WASHINGTON : The Federal Reserve cut US short-term interest rates on Wednesday in a widely anticipated move, saying it had acted amid concerns economic growth will likely cool in coming months.
The central bank said it had cut its federal funds interest rate by a quarter of a percentage point to 4.50 percent. Wall Street shares closed with a rally in the wake of the announcement.
"The pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction," the Fed said in a statement.
The Fed slashed borrowing costs on September 18 by a more dramatic half a percentage point, but the housing slump - one of the worst in decades - has shown no sign of improvement.
"The concerns over housing and credit seem to be dominant for most of the FOMC (Federal Open Market Committee) and their evaluation today," said Carl Tannenbaum, a chief economist at ABN AMRO North America, Inc.
The Fed said policymakers, led by Fed chairman Ben Bernanke, had reduced rates in an effort to keep the world's largest economy growing at a "moderate" pace.
The decision was not unanimous, however, as Thomas Hoenig, the president of the Federal Reserve Bank of Kansas City, voted to keep the fed funds rate pegged at 4.75 percent.
Hoenig was heavily outvoted by nine other policymakers including Bernanke who all wanted to trim borrowing costs.
The central bank's move, its second rate cut in as many months, will also offer some relief to ailing credit markets which have tightened as major commercial banks have sustained hefty losses tied to mortgage-backed securities.
"This action will help to stabilise the financial markets," said Brian Bethune, a US economist at Global Insight.
Merrill Lynch, one of Wall Street's biggest investment banks, announced vast write-downs of almost eight billion dollars last week, mainly related to soured bets on mortgage securities.
"There are still sectors of the credit markets that are not functioning very well. Very simply stated, if capital is not flowing, then firms are more hesitant to make investments," Tannenbaum said.
The fresh rate cut is also likely to be appreciated by consumers who will benefit from lower borrowing costs, but it dealt a fresh blow to an already weakened dollar.
The euro leapt to a record high of 1.45 dollars in the wake of the Fed's move. The dollar's decline on foreign exchange markets makes foreign goods and products, particularly oil, more expensive for Americans to purchase.
The Fed statement cited concerns about rising energy and commodity prices, saying they could renew inflationary pressures, but economists said housing and credit worries outweigh inflation risks for now.
Crude oil prices have rocketed in recent weeks and leapt to a new record high of 94 dollars a barrel in New York on Wednesday amid supply concerns and geopolitical angst.
Although US economic growth has been robust in recent months, economists fear growth could slow markedly in coming months, largely because of the housing downturn.
"As we struggle to find a new equilibrium for home prices are consumers who are seeing the values of their properties diminish going to adjust their spending patterns?" Tannenbaum said.
Sales of existing homes and apartments dived eight percent in September to a seasonally adjusted rate of 5.04 million properties. Sales and home prices have plummeted as a glut of unsold properties has flooded the market.
Other economic gauges are throwing off lacklustre readings despite a government report on Wednesday which showed third-quarter growth accelerated a notch to 3.9 percent.
The central bank also cut its discount rate, the rate it levies on loans to commercial banks, by a quarter of a percentage point to five percent. - AFP/de
在电邮中被指“生意濒临倒闭” 承包商起诉女经纪诽谤
《联合早报》Nov 1, 2007
单身女子入住新公寓，9个月后碰上雨季，屋顶漏水、墙壁渗漏，甚至窗口周围也长出霉菌。她声称向公寓管理公司投诉，迟迟不见修补行动，后来才知是总承包商的因素。
首次买屋的吴庭宝（40岁，股票经纪）声称，她从管理公司职员口中，得知总承包商处处刁难，坚持要她提供照片，还查询她的窗口材料；一些单位和停车场等共享地方，也出现类似问题。
吴庭宝于是发电邮给总承包商，并且跟公寓的发展商城市发展有往来电邮。她在一则发给发展商代表黄珍妮的电邮中说，她向行业人士查询，获知总承包商濒临倒闭。
总承包商高技建设（Hytech Builders）私人有限公司就此言论起诉吴庭宝，指她诽谤，要她赔偿名誉损失。案件昨天开审。
答辩人吴庭宝是于前年11月，以约80万元买下金玉坊（Emery Point）公寓。公寓位于丹戎加东路一带的怡保巷。去年3月，她搬入公寓；去年12月间，才发现渗漏问题。
根据诉方开庭陈词，答辩人是在今年1月16日发电邮给黄珍妮时，作出诽谤性言论，指她向业内人士查询后，惊知该公司濒临倒闭。
诉方指出，今年8月16日，高庭法官翁安德烈已宣判该段文字具诽谤性，因为它等于说起诉人面临破产，而起诉人陷入这样的财务状况，在建筑业内是众所周知的。
诉方说，答辩人的言论极不正确。因为起诉人非但没面临破产，还是赚钱的公司。既然如此，也就没有答辩人所谓的“众所周知”。
起诉人称跟城市发展有大量的交易，后者是它重要的生意伙伴。两家公司合作的项目包括道德路名望园、山景道幽美岭、后港7道富乐园等。它认为自己在建筑业中具有声望，答辩人的言论是要破坏其声誉。
它也指答辩人违抗数个庭令，没有透露“行业人士”详情的行为，显然跟法庭对抗。
辩方开庭陈词说，答辩人是于去年12月中在杂物室发现水从屋顶漏出，弄湿她晾的衣物。她联络了管理公司的两名代表数次，下来的两周里，没人上她家查看情况。
12月是雨季，几乎天天都下雨，渗漏情况也越来越严重，根据辩方说法，水从滴流到如注般涌出，窗边和相邻墙壁长出黑色霉菌，霉菌扩散到地上。
答辩人每晚下班须抹干地板的水。面对漏水情况，加上毫无修补行动，答辩人愈加气恼和沮丧。她发电邮给总承包商，而管理公司的代表也把她的电邮转发给总承包商，但总承包商却没给予任何答复。
她等了约一个月，最终决定寻求城市发展代表的协助，就发出那则被指含诽谤性言论的电邮。
她说，该电邮只是想发泄心中懊恼，不含恶意（malice）。她没有意图诽谤起诉人，使他尴尬，或干扰其生意，或造成任何不便。
另外，她也声称身为股票经纪，她有责任帮客户守密，因此不能透露客户的详情。
她认为，该言论虽然含诽谤性，但它具有限特许权（Qualified privilege）。她只把电邮发给一个人，用意是通知对方即刻采取行动，解决渗漏问题。
她指出，至今，渗漏问题还是没有解决。起诉人没有解决问题，却选择起诉她，使她须承担更多的费用。她认为，没有证据显示起诉人蒙受损失，因此即使她有赔偿责任，也只须作出象征性赔偿。本案今天续审。
单身女子入住新公寓，9个月后碰上雨季，屋顶漏水、墙壁渗漏，甚至窗口周围也长出霉菌。她声称向公寓管理公司投诉，迟迟不见修补行动，后来才知是总承包商的因素。
首次买屋的吴庭宝（40岁，股票经纪）声称，她从管理公司职员口中，得知总承包商处处刁难，坚持要她提供照片，还查询她的窗口材料；一些单位和停车场等共享地方，也出现类似问题。
吴庭宝于是发电邮给总承包商，并且跟公寓的发展商城市发展有往来电邮。她在一则发给发展商代表黄珍妮的电邮中说，她向行业人士查询，获知总承包商濒临倒闭。
总承包商高技建设（Hytech Builders）私人有限公司就此言论起诉吴庭宝，指她诽谤，要她赔偿名誉损失。案件昨天开审。
答辩人吴庭宝是于前年11月，以约80万元买下金玉坊（Emery Point）公寓。公寓位于丹戎加东路一带的怡保巷。去年3月，她搬入公寓；去年12月间，才发现渗漏问题。
根据诉方开庭陈词，答辩人是在今年1月16日发电邮给黄珍妮时，作出诽谤性言论，指她向业内人士查询后，惊知该公司濒临倒闭。
诉方指出，今年8月16日，高庭法官翁安德烈已宣判该段文字具诽谤性，因为它等于说起诉人面临破产，而起诉人陷入这样的财务状况，在建筑业内是众所周知的。
诉方说，答辩人的言论极不正确。因为起诉人非但没面临破产，还是赚钱的公司。既然如此，也就没有答辩人所谓的“众所周知”。
起诉人称跟城市发展有大量的交易，后者是它重要的生意伙伴。两家公司合作的项目包括道德路名望园、山景道幽美岭、后港7道富乐园等。它认为自己在建筑业中具有声望，答辩人的言论是要破坏其声誉。
它也指答辩人违抗数个庭令，没有透露“行业人士”详情的行为，显然跟法庭对抗。
辩方开庭陈词说，答辩人是于去年12月中在杂物室发现水从屋顶漏出，弄湿她晾的衣物。她联络了管理公司的两名代表数次，下来的两周里，没人上她家查看情况。
12月是雨季，几乎天天都下雨，渗漏情况也越来越严重，根据辩方说法，水从滴流到如注般涌出，窗边和相邻墙壁长出黑色霉菌，霉菌扩散到地上。
答辩人每晚下班须抹干地板的水。面对漏水情况，加上毫无修补行动，答辩人愈加气恼和沮丧。她发电邮给总承包商，而管理公司的代表也把她的电邮转发给总承包商，但总承包商却没给予任何答复。
她等了约一个月，最终决定寻求城市发展代表的协助，就发出那则被指含诽谤性言论的电邮。
她说，该电邮只是想发泄心中懊恼，不含恶意（malice）。她没有意图诽谤起诉人，使他尴尬，或干扰其生意，或造成任何不便。
另外，她也声称身为股票经纪，她有责任帮客户守密，因此不能透露客户的详情。
她认为，该言论虽然含诽谤性，但它具有限特许权（Qualified privilege）。她只把电邮发给一个人，用意是通知对方即刻采取行动，解决渗漏问题。
她指出，至今，渗漏问题还是没有解决。起诉人没有解决问题，却选择起诉她，使她须承担更多的费用。她认为，没有证据显示起诉人蒙受损失，因此即使她有赔偿责任，也只须作出象征性赔偿。本案今天续审。
为两间店屋打官司 新加坡母子终于和解
《联合早报》Nov 1, 2007
七旬老母为了两间约400万元的店屋权益，跟儿子对簿公堂。经两天商谈，母子终于和解，和解内容保密。
本案三天前开审，审讯半天后，双方就商谈和解的可能性。昨天中午，诉辩双方向高庭法官陈利明表明要和解。
起诉人高亚桃（74岁）指答辩人苏华顺（约50岁）只是以信托人的名义保管店屋，要后者撤出他的权益，但后者不肯，指他享有两间店屋的权益，并非受托人。
起诉人有四女二子，答辩人排行第四。涉及的两间店屋位于大巴窑6巷第190座组屋地面层540号（大店屋）和518号（小店屋），市价分别为250万元和150万元。
大店屋注册在起诉人、幼女苏华晶和答辩人名下；小店屋则注册在次女苏华英、三女儿苏华丽和答辩人名下。
她指答辩人和其他孩子只是两间店的信托人，不是业主。前年年底，她考虑到需要为遗产分配做好准备，要求答辩人等撤出店屋的权益。
答辩人指他享有两间店屋的权益，并非受托人，拒绝撤出，结果引发这起母子官司。（部分人名译音）
七旬老母为了两间约400万元的店屋权益，跟儿子对簿公堂。经两天商谈，母子终于和解，和解内容保密。
本案三天前开审，审讯半天后，双方就商谈和解的可能性。昨天中午，诉辩双方向高庭法官陈利明表明要和解。
起诉人高亚桃（74岁）指答辩人苏华顺（约50岁）只是以信托人的名义保管店屋，要后者撤出他的权益，但后者不肯，指他享有两间店屋的权益，并非受托人。
起诉人有四女二子，答辩人排行第四。涉及的两间店屋位于大巴窑6巷第190座组屋地面层540号（大店屋）和518号（小店屋），市价分别为250万元和150万元。
大店屋注册在起诉人、幼女苏华晶和答辩人名下；小店屋则注册在次女苏华英、三女儿苏华丽和答辩人名下。
她指答辩人和其他孩子只是两间店的信托人，不是业主。前年年底，她考虑到需要为遗产分配做好准备，要求答辩人等撤出店屋的权益。
答辩人指他享有两间店屋的权益，并非受托人，拒绝撤出，结果引发这起母子官司。（部分人名译音）
Tender Closing For Residential Site At Enggor Street (Land Parcel A)
Source : Urban Redevelopment Authority (URA) News Releases, 1 November 2007
+Logo.gif)
The Urban Redevelopment Authority (URA) closed the tender for the residential site at Enggor Street (Land Parcel A) today.
The site at Enggor Street (Land Parcel A) was launched for public tender on 4 September 2007 (http://www.ura.gov.sg/pr/text/2007/pr07-95.html). The site was offered for sale on a 99-year lease.
Please see Annex A for the particulars of the site and the details of the bids received.
This is not an announcement of tender award. A decision on the award of the tenders will be made after the bids have been evaluated. This will be publicised at a later date.
--------------------------------------------------------------------------------
For media enquiries, please contact:
Ms Serene Tng
Manager, Public Relations
DID: 6329 3224
Email: Serene_Tng@ura.gov.sg
+Logo.gif)
The Urban Redevelopment Authority (URA) closed the tender for the residential site at Enggor Street (Land Parcel A) today. The site at Enggor Street (Land Parcel A) was launched for public tender on 4 September 2007 (http://www.ura.gov.sg/pr/text/2007/pr07-95.html). The site was offered for sale on a 99-year lease.
Please see Annex A for the particulars of the site and the details of the bids received.
This is not an announcement of tender award. A decision on the award of the tenders will be made after the bids have been evaluated. This will be publicised at a later date.
--------------------------------------------------------------------------------
For media enquiries, please contact:
Ms Serene Tng
Manager, Public Relations
DID: 6329 3224
Email: Serene_Tng@ura.gov.sg
Asia Thriving But Not Insulated From External Factors
Source : The Straits Times, Nov 1, 2007
US recession, inflation and surging oil prices will affect regional economies: Analysts
ASIA is booming but an explosive mix of rising energy prices, inflation and the sliding greenback could wreak much damage, warned Singapore-based experts.
And despite talk that Asia's economy is decoupling from the United States, the region will not be insulated from a US recession, which could hit next year.
The warning came from analysts speaking at yesterday's relaunch of Pulses, a monthly investment magazine from the Singapore Exchange, which will now be produced by The Business Times starting from its January issue.
Citigroup economist Chua Hak Bin said: 'If the US sinks into a recession, Asia will feel it. There are signs that some exports are slowing, but the good thing is that there are some domestic demands.'
Mr Hugh Young, managing director of Aberdeen Asset Management, agreed: 'While Asia has decoupled economically, it has integrated in a financial sentiment sense. So, if things do wobble sentiment-wise in the US, that could have a knock-on effect in Asia.
'Energy prices are going to be a destabilising force, especially in poor economies,' he added, citing the unrest in Myanmar. 'It could be a very volatile world in the next 12 months.'
The Singdollar is expected to hit a record 1.37 against the US dollar by the end of next year, said Dr Chua, adding that oil prices crossing the US$100 mark is not too far away. The Singdollar is now at 1.45. 'On the other hand, Asian currencies have a huge way to go, as far as appreciation is concerned,' said Mr Young.
Inflation was cited as another concern. Dr Chua said: 'The difference between now and three years ago is that inflation numbers are now within a discomforting range for central banks.'
Mr Young is also worried about the level of inflation. 'At the same time you've got rates being cut because of the US sub-prime issue, yet some central banks are raising rates due to inflation and that causes distortions.'
The risk of slower US growth in the first half of next year and rising inflation in economies like China mean investors will not get the same stock market bull run as this year. 'Our equity strategist has shifted to a more defensive mode given where valuations are,' said Dr Chua.
Bank stocks are going to pick up strongly, and the marine and offshore engineering sector is also likely to do well, while telecommunication stocks, which give generous dividends, are also favoured, said Dr Chua. But exporters will be hit as the US dollar continues to sink further.
US recession, inflation and surging oil prices will affect regional economies: Analysts
ASIA is booming but an explosive mix of rising energy prices, inflation and the sliding greenback could wreak much damage, warned Singapore-based experts.
And despite talk that Asia's economy is decoupling from the United States, the region will not be insulated from a US recession, which could hit next year.
The warning came from analysts speaking at yesterday's relaunch of Pulses, a monthly investment magazine from the Singapore Exchange, which will now be produced by The Business Times starting from its January issue.
Citigroup economist Chua Hak Bin said: 'If the US sinks into a recession, Asia will feel it. There are signs that some exports are slowing, but the good thing is that there are some domestic demands.'
Mr Hugh Young, managing director of Aberdeen Asset Management, agreed: 'While Asia has decoupled economically, it has integrated in a financial sentiment sense. So, if things do wobble sentiment-wise in the US, that could have a knock-on effect in Asia.
'Energy prices are going to be a destabilising force, especially in poor economies,' he added, citing the unrest in Myanmar. 'It could be a very volatile world in the next 12 months.'
The Singdollar is expected to hit a record 1.37 against the US dollar by the end of next year, said Dr Chua, adding that oil prices crossing the US$100 mark is not too far away. The Singdollar is now at 1.45. 'On the other hand, Asian currencies have a huge way to go, as far as appreciation is concerned,' said Mr Young.
Inflation was cited as another concern. Dr Chua said: 'The difference between now and three years ago is that inflation numbers are now within a discomforting range for central banks.'
Mr Young is also worried about the level of inflation. 'At the same time you've got rates being cut because of the US sub-prime issue, yet some central banks are raising rates due to inflation and that causes distortions.'
The risk of slower US growth in the first half of next year and rising inflation in economies like China mean investors will not get the same stock market bull run as this year. 'Our equity strategist has shifted to a more defensive mode given where valuations are,' said Dr Chua.
Bank stocks are going to pick up strongly, and the marine and offshore engineering sector is also likely to do well, while telecommunication stocks, which give generous dividends, are also favoured, said Dr Chua. But exporters will be hit as the US dollar continues to sink further.
Government Plans Sale Of Atrium@Orchard
Source : Channel NewsAsia, 01 November 2007
The Singapore Land Authority (SLA) confirmed on Thursday that the Atrium@Orchard will soon be sold.
This is the first time the Singapore government is selling a Grade A commercial building.
The Atrium@Orchard is located at Singapore's prime shopping and entertainment district, next to Plaza Singapura and above the Dhoby Ghaut MRT station.
In a statement, the SLA said given the building's commercial value and the buoyant market conditions, it is a good time to divest it with the best value for the state.
CB Richard Ellis will be the marketing consultant on the planned sale of the building.
The Atrium@Orchard is 100% occupied by a mix of financial institutions and F&B outlets. It sits on a land area of about 9,575 square metres and comprises of two towers of 7 and 10 storeys respectively. - CNA /ls
The Singapore Land Authority (SLA) confirmed on Thursday that the Atrium@Orchard will soon be sold.
This is the first time the Singapore government is selling a Grade A commercial building.
The Atrium@Orchard is located at Singapore's prime shopping and entertainment district, next to Plaza Singapura and above the Dhoby Ghaut MRT station. In a statement, the SLA said given the building's commercial value and the buoyant market conditions, it is a good time to divest it with the best value for the state.
CB Richard Ellis will be the marketing consultant on the planned sale of the building.
The Atrium@Orchard is 100% occupied by a mix of financial institutions and F&B outlets. It sits on a land area of about 9,575 square metres and comprises of two towers of 7 and 10 storeys respectively. - CNA /ls
Two Bids Received For Enggor Residential Site
Source : Channel NewsAsia, 01 November 2007
There are only two bids received for the residential site at Enggor Street (Land Parcel A).
Bishan Properties submitted the higher bid for Land Parcel A at S$233.8 million. This works out to S$9,200 per square metre of gross floor area or S$852 per square foot per plot ratio.
The other bid for S$151 million came from First Capital Holdings.
Property consultants CB Richard Ellis said the bids reflect a more cautious mood among developers, partly caused by the recent move to withdraw the deferred payment scheme for property purchases.
The land parcel sits on 3,000 square metres and can be built up to over 25,000 square metres.
The successful developer can allocate the first storey for commercial use.
CB Richard Ellis expects a breakeven price of around S$1,300 per square foot.-CNA/ls
There are only two bids received for the residential site at Enggor Street (Land Parcel A).
Bishan Properties submitted the higher bid for Land Parcel A at S$233.8 million. This works out to S$9,200 per square metre of gross floor area or S$852 per square foot per plot ratio. The other bid for S$151 million came from First Capital Holdings.
Property consultants CB Richard Ellis said the bids reflect a more cautious mood among developers, partly caused by the recent move to withdraw the deferred payment scheme for property purchases.
The land parcel sits on 3,000 square metres and can be built up to over 25,000 square metres.
The successful developer can allocate the first storey for commercial use.
CB Richard Ellis expects a breakeven price of around S$1,300 per square foot.-CNA/ls
Far East Organisation To Set Up Novena Surgery
Source : Channel NewsAsia, 01 November 2007
Far East Organisation is throwing its hat into the ring for the hospital site at the junction of Novena Terrace and Irrawady Road.
"Far East is interested in the hospital site that has just been released in Novena Terrace and Irrawaddy Road because we think that it will indeed complete the facilities in that medical cluster," said G L Yap, the executive director of Far East Organization.
"And we just got a copy of the tender documents and we're going to go through them and make our plans."
The comment came today as Far East announced it was setting up Novena Surgery, an outpatient surgery facility at the Novena Medical Centre.
This is a joint venture between Far East and a group of specialist doctors.
The facility caters to patients who need surgery but are able to recover at home.
Far East said that international patients are especially suited to outpatient surgery as treatment is simple and quick, and recovery is fast.
With the outpatient surgery, patients can look forward to cost savings of 20 to 30 per cent on their medical bills.
Novena Surgery will have three operating theatres and two endoscopy suites.
It can offer a range of surgical procedures such as eye surgery, ear-nose-throat, hand surgery, orthopaedic and reconstructive surgery.- CNA/yb
Far East Organisation is throwing its hat into the ring for the hospital site at the junction of Novena Terrace and Irrawady Road. "Far East is interested in the hospital site that has just been released in Novena Terrace and Irrawaddy Road because we think that it will indeed complete the facilities in that medical cluster," said G L Yap, the executive director of Far East Organization.
"And we just got a copy of the tender documents and we're going to go through them and make our plans."
The comment came today as Far East announced it was setting up Novena Surgery, an outpatient surgery facility at the Novena Medical Centre.
This is a joint venture between Far East and a group of specialist doctors.
The facility caters to patients who need surgery but are able to recover at home.
Far East said that international patients are especially suited to outpatient surgery as treatment is simple and quick, and recovery is fast.
With the outpatient surgery, patients can look forward to cost savings of 20 to 30 per cent on their medical bills.
Novena Surgery will have three operating theatres and two endoscopy suites.
It can offer a range of surgical procedures such as eye surgery, ear-nose-throat, hand surgery, orthopaedic and reconstructive surgery.- CNA/yb
Citigroup Invests S$220m To Relocate Back Office Operations To Changi
Source : Channel NewsAsia, 01 November 2007
US banking giant Citigroup is spending S$220 million to move into new premises at Changi.
It plans to shift some of its operations to the new facility, as part of efforts to keep costs down, and to create a friendlier office environment.
Called Changi Business Park, the 400,000-square feet facility will be built by Ascendas Real Estate Investment Trust.
Citigroup currently has offices at six different buildings in Singapore.
With more than 8,000 employees, it is Singapore's top bank - in terms of staff numbers - and still growing.
Citigroup plans to move half of its employees to Changi Business Park by 2010, but it will keep its downtown offices especially for staff who need to be nearer their clients.
"Prices of real estate in downtown central Singapore had been increasing rapidly and a large part of our operations, particularly our technology operations as well as support and back office operations, don't necessarily have to be located in the most expensive parts of the city," said Piyush Gupta, Country Officer, Citi Singapore.
Citi said it is not affected by the spike in rents in the prime district yet as it still has leases for the next 5-7 years. However, its expansion plans mean it will have to pay market prices for additional office space.
But Citi said the new premises are not just about costs.
It is seeking to keep and draw talent by creating a campus-like, eco-friendly work environment, with amenities like a childcare centre and gymnasium. The business park will also have a podium with a variety of shops.
The lender said it has so far been successful with similar moves elsewhere in major cities such as New York and London.
"We did that in New York several years ago when we moved from downtown to midtown... Typically, we've found that when a big core player like us makes the move, the infrastructure starts developing around it, and slowly a large centre of activity starts to move around it as well. So, we're hopeful we can lead the charge again," said Gupta.
Property consultants had anticipated that banks will start to move their back offices away from the city to reduce costs amid soaring rents.
Office rents at the financial district have shot up by 60% to 70% in the last 12 months. - CNA /ls
US banking giant Citigroup is spending S$220 million to move into new premises at Changi.
It plans to shift some of its operations to the new facility, as part of efforts to keep costs down, and to create a friendlier office environment. Called Changi Business Park, the 400,000-square feet facility will be built by Ascendas Real Estate Investment Trust.
Citigroup currently has offices at six different buildings in Singapore.
With more than 8,000 employees, it is Singapore's top bank - in terms of staff numbers - and still growing.
Citigroup plans to move half of its employees to Changi Business Park by 2010, but it will keep its downtown offices especially for staff who need to be nearer their clients.
"Prices of real estate in downtown central Singapore had been increasing rapidly and a large part of our operations, particularly our technology operations as well as support and back office operations, don't necessarily have to be located in the most expensive parts of the city," said Piyush Gupta, Country Officer, Citi Singapore.
Citi said it is not affected by the spike in rents in the prime district yet as it still has leases for the next 5-7 years. However, its expansion plans mean it will have to pay market prices for additional office space.
But Citi said the new premises are not just about costs.
It is seeking to keep and draw talent by creating a campus-like, eco-friendly work environment, with amenities like a childcare centre and gymnasium. The business park will also have a podium with a variety of shops.
The lender said it has so far been successful with similar moves elsewhere in major cities such as New York and London.
"We did that in New York several years ago when we moved from downtown to midtown... Typically, we've found that when a big core player like us makes the move, the infrastructure starts developing around it, and slowly a large centre of activity starts to move around it as well. So, we're hopeful we can lead the charge again," said Gupta.
Property consultants had anticipated that banks will start to move their back offices away from the city to reduce costs amid soaring rents.
Office rents at the financial district have shot up by 60% to 70% in the last 12 months. - CNA /ls
Builders Sue Woman For Offending E-Mail
Source : The Straits Times, Nov 1, 2007
HER year-old condo unit had leaks, and when it looked like the contractor was stonewalling her in getting the problem fixed, she shot an e-mail to the condo's developer that defamed the contracting firm.
Stockbroker Goh Teng Poh, 40, is now being sued by the contractor, Hytech Builders, for damages as a result of the e-mail she sent to Ms Jenny Hong of City Developments Ltd (CDL).
Hytech is the main contractor for the Emery Point Condominium, where Ms Goh has a unit on the 15th floor.
The contractor, through its lawyers from Rajah & Tann, is claiming that her statement in the e-mail would tarnish its business reputation with CDL, a major real-estate development player here.
The case is expected to turn on the seriousness of the damage caused by the defamatory words.
Testifying yesterday, Ms Goh said she wrote the e-mail to CDL in a fit of frustration because she had the impression that Hytech was not responding to an e-mail she sent them earlier.
She was not kept in the loop about Hytech's communications with the condo's managing agent about getting the leaks fixed.
Pressed repeatedly yesterday by Hytech's lawyer Adrian Wong, Ms Goh refused to name the source from whom she got the offending opinion.
Ms Goh, represented by lawyers Adrian Tan, Wendell Wong and Sophine Chin from Drew & Napier, said it was because he was a 'valued client' of her firm and a 'good friend'.
She stood firm on this under questioning by Mr Wong, although he got her to concede that there was no legal basis for her to withhold the name of her source.
Her source is understood to be the boss of a publicly-listed construction firm.
She said she had based the offending comment - a single sentence spliced into what was otherwise an apparently innocuous e-mail - from what she had heard from her source, among other things.
She said: 'I do not want to subject him to any defamation suit for sharing his opinion with me.'
Her voice broke slightly as she added that she was not doing this 'out of disrespect for the court system'
Justice Judith Prakash made it clear the court was not condoning her stand in refusing to divulge the source.
Lawyers for both sides will present their concluding arguments today.
HER year-old condo unit had leaks, and when it looked like the contractor was stonewalling her in getting the problem fixed, she shot an e-mail to the condo's developer that defamed the contracting firm.
Stockbroker Goh Teng Poh, 40, is now being sued by the contractor, Hytech Builders, for damages as a result of the e-mail she sent to Ms Jenny Hong of City Developments Ltd (CDL).
Hytech is the main contractor for the Emery Point Condominium, where Ms Goh has a unit on the 15th floor.
The contractor, through its lawyers from Rajah & Tann, is claiming that her statement in the e-mail would tarnish its business reputation with CDL, a major real-estate development player here.
The case is expected to turn on the seriousness of the damage caused by the defamatory words.
Testifying yesterday, Ms Goh said she wrote the e-mail to CDL in a fit of frustration because she had the impression that Hytech was not responding to an e-mail she sent them earlier.
She was not kept in the loop about Hytech's communications with the condo's managing agent about getting the leaks fixed.
Pressed repeatedly yesterday by Hytech's lawyer Adrian Wong, Ms Goh refused to name the source from whom she got the offending opinion.
Ms Goh, represented by lawyers Adrian Tan, Wendell Wong and Sophine Chin from Drew & Napier, said it was because he was a 'valued client' of her firm and a 'good friend'.
She stood firm on this under questioning by Mr Wong, although he got her to concede that there was no legal basis for her to withhold the name of her source.
Her source is understood to be the boss of a publicly-listed construction firm.
She said she had based the offending comment - a single sentence spliced into what was otherwise an apparently innocuous e-mail - from what she had heard from her source, among other things.
She said: 'I do not want to subject him to any defamation suit for sharing his opinion with me.'
Her voice broke slightly as she added that she was not doing this 'out of disrespect for the court system'
Justice Judith Prakash made it clear the court was not condoning her stand in refusing to divulge the source.
Lawyers for both sides will present their concluding arguments today.
Citi Invests $220m In New Building For Backroom Ops
Source : The Straits Times, Nov 1, 2007
CITIGROUP is paying $220 million to lease two new custom-built buildings in Changi Business Park, that will eventually house up to 4,000 operational and backroom staff.
The global financial services group, which aims to grow here, said the new premises will help consolidate its operations at a site well away from soaring prime office rents. -- PHOTO: CITIGROUP
The global financial services group, which aims to grow here, said the new premises will help consolidate its operations at a site well away from soaring prime office rents.
'Singapore continues to migrate into a unique position for Citi's global businesses,' said Citigroup's head of Asean, markets and banking, and country officer for Singapore, Mr Piyush Gupta.
'We want to be a global financial centre but costs are getting out of whack, particularly not just people costs, but premises' costs.'
Some prime office rents have nearly tripled in the past three years.
Property consultants say there is increasing resistance to the rapid rent rises, with some firms either holding off expansion plans or moving to cheaper spots.
'For a big company like us, to continue scaling out in the centre of the city at $15 per sq ft doesn't make sense,' said Mr Gupta.
He did not disclose the rental rate psf at the new premises.
About 1,100 of Citi's staff will move into the new premises, in an industrial area near the Singapore Expo, when the first phase is ready. Another 2,000 staff are expected in the second phase.
Ascendas Real Estate Investment Trust is developing the buildings starting this month. The first phase is set to be ready in the first quarter of 2009 and the second in late 2010.
The Changi premises will house its global software innovation team, two of its regional processing centres for securities, banking and transaction services and its regional technology infrastruture support.
Citi's investment of about $220 million comprises the capital, relocation, rental and operating costs. It will lease the buildings until 2016 and has an option to extend its lease for another six years.
Mr Gupta said Citi hopes to create a fun, eco-friendly, campus-like workplace at Changi, with features such as exercise rooms.
'Given today's war for talent, an important part of keeping employees engaged is the work environment,' he said.
The group, which currently occupies one million sq ft of space here, is spread out in six spots, including prime space in Capital Square and Centennial Tower, as well as two Tampines locations.
Citi's space take-up rises to 1.2 million sq ft when they fill the new space and vacate their Tampines premises.
It will be looking at new hires as it expands, but Mr Gupta did say how many. It employs more than 8,500 people here, up from 7,500 two years ago.
CITIGROUP is paying $220 million to lease two new custom-built buildings in Changi Business Park, that will eventually house up to 4,000 operational and backroom staff.
The global financial services group, which aims to grow here, said the new premises will help consolidate its operations at a site well away from soaring prime office rents. -- PHOTO: CITIGROUP
The global financial services group, which aims to grow here, said the new premises will help consolidate its operations at a site well away from soaring prime office rents.
'Singapore continues to migrate into a unique position for Citi's global businesses,' said Citigroup's head of Asean, markets and banking, and country officer for Singapore, Mr Piyush Gupta.
'We want to be a global financial centre but costs are getting out of whack, particularly not just people costs, but premises' costs.'
Some prime office rents have nearly tripled in the past three years.
Property consultants say there is increasing resistance to the rapid rent rises, with some firms either holding off expansion plans or moving to cheaper spots.
'For a big company like us, to continue scaling out in the centre of the city at $15 per sq ft doesn't make sense,' said Mr Gupta.
He did not disclose the rental rate psf at the new premises.
About 1,100 of Citi's staff will move into the new premises, in an industrial area near the Singapore Expo, when the first phase is ready. Another 2,000 staff are expected in the second phase.
Ascendas Real Estate Investment Trust is developing the buildings starting this month. The first phase is set to be ready in the first quarter of 2009 and the second in late 2010.
The Changi premises will house its global software innovation team, two of its regional processing centres for securities, banking and transaction services and its regional technology infrastruture support.
Citi's investment of about $220 million comprises the capital, relocation, rental and operating costs. It will lease the buildings until 2016 and has an option to extend its lease for another six years.
Mr Gupta said Citi hopes to create a fun, eco-friendly, campus-like workplace at Changi, with features such as exercise rooms.
'Given today's war for talent, an important part of keeping employees engaged is the work environment,' he said.
The group, which currently occupies one million sq ft of space here, is spread out in six spots, including prime space in Capital Square and Centennial Tower, as well as two Tampines locations.
Citi's space take-up rises to 1.2 million sq ft when they fill the new space and vacate their Tampines premises.
It will be looking at new hires as it expands, but Mr Gupta did say how many. It employs more than 8,500 people here, up from 7,500 two years ago.
Ageing Marine Parade Flat Sold For Record $730,000
Source : The Straits Times, Nov 1, 2007
A five-room flat in Marine Parade has set a new record for the priciest HDB flat, when it was sold at $730,000.
A 32-YEAR-OLD five-room flat in Marine Parade - still in its original condition - has set a new record for the priciest HDB flat, when it was sold at $730,000.
The flat, in a point block facing East Coast Parkway, offers a full sea view. -- ST PHOTO: DESMOND LIM
This trumps the previous HDB flat record of $720,000, which was set in June by a fairly new five-roomer in Kim Tian Place.
The buyer of the flat, who declined to be interviewed, did not bother to wait for the flat's valuation when he negotiated the price down from $750,000, said the seller's property agent from ERA, Ms Joyce Lau.
The deal was inked in half a day, when the buyer who viewed the high-floor flat in the day confirmed the buy at night, she said.
The flat, in a point block facing East Coast Parkway, offers a full sea view.
The purchase comes as HDB resale prices have registered significant increases in a buoyant property market.
The HDB market has also benefitted from spill-over demand.
The mind-boggling rate of collective sales in the past year has created a ready pool of genuine buyers, some of whom are downgrading to HDB flats.
Read the full report in Friday's edition of The Straits Times.
A five-room flat in Marine Parade has set a new record for the priciest HDB flat, when it was sold at $730,000.
A 32-YEAR-OLD five-room flat in Marine Parade - still in its original condition - has set a new record for the priciest HDB flat, when it was sold at $730,000.
The flat, in a point block facing East Coast Parkway, offers a full sea view. -- ST PHOTO: DESMOND LIMThis trumps the previous HDB flat record of $720,000, which was set in June by a fairly new five-roomer in Kim Tian Place.
The buyer of the flat, who declined to be interviewed, did not bother to wait for the flat's valuation when he negotiated the price down from $750,000, said the seller's property agent from ERA, Ms Joyce Lau.
The deal was inked in half a day, when the buyer who viewed the high-floor flat in the day confirmed the buy at night, she said.
The flat, in a point block facing East Coast Parkway, offers a full sea view.
The purchase comes as HDB resale prices have registered significant increases in a buoyant property market.
The HDB market has also benefitted from spill-over demand.
The mind-boggling rate of collective sales in the past year has created a ready pool of genuine buyers, some of whom are downgrading to HDB flats.
Read the full report in Friday's edition of The Straits Times.
Neighbourhoods In Bloom Following Success Of NPark's Programme
Source : The Straits Times, Nov 1, 2007
IT started out two years ago as a modest plan to help Singaporeans get in touch with their roots - plant roots, that is.
The Community In Bloom programme aimed to start 50 gardens a year.
But it has already proved a bloomin' success - 240 have sprung up, and the number is still growing.
The programme, initiated by the National Parks Board, has resulted in gardens of fruit and vegetables sprouting across Singapore, run by residents in public and private housing estates and organisations and schools.
It aims to promote a gardening culture by encouraging and aiding gardening efforts by the community.
NParks provides guidance and advice to these gardening groups, such as on location of the garden and types of plants to grow.
Public housing estates, in particular, are where the plan is bearing fruit, not just in terms of providing welcome greenery, but in neighbourly bonding, too.
There are about 115 such gardens in public housing estates alone.
Read the full story in Friday's edition of The Straits Times Life!
IT started out two years ago as a modest plan to help Singaporeans get in touch with their roots - plant roots, that is.
The Community In Bloom programme aimed to start 50 gardens a year.
But it has already proved a bloomin' success - 240 have sprung up, and the number is still growing.
The programme, initiated by the National Parks Board, has resulted in gardens of fruit and vegetables sprouting across Singapore, run by residents in public and private housing estates and organisations and schools.
It aims to promote a gardening culture by encouraging and aiding gardening efforts by the community.
NParks provides guidance and advice to these gardening groups, such as on location of the garden and types of plants to grow.
Public housing estates, in particular, are where the plan is bearing fruit, not just in terms of providing welcome greenery, but in neighbourly bonding, too.
There are about 115 such gardens in public housing estates alone.
Read the full story in Friday's edition of The Straits Times Life!
Havelock Food Centre Opens After $1.2m Facelift
Source : The Straits Times, Nov 1, 2007
THE 38-year-old Havelock Road Cooked Food Centre was officially reopened for business on Thursday after a $1.2 million refurbishment.
Havelock Road Cooked Food Centre resumed business on May 1 after 7 months of upgrading with 30 cooked-food stalls equipped with new individual mechanical exhaust hoods and flue systems. -- ST PHOTO: LAU FOOK KONG
It resumed business on May 1 after 7 months of upgrading under the National Environment Agency's (NEA) Hawker Centres Upgrading Programme.
Jalan Besar GRC MP Lily Neo opened and toured the centre on Thursday.
With 30 cooked-food stalls, the one-storey building is now equipped with new individual mechanical exhaust hoods and flue systems.
It also boasts a seating capacity of 96 tables, up from the previous 77.
Other highlights include elderly and handicapped-friendly features such as ramps, wheelchair-friendly tables and toilets with nappy changing tables.
To date, 58 hawker or food centres have been upgraded and six centres are undergoing makeovers.
THE 38-year-old Havelock Road Cooked Food Centre was officially reopened for business on Thursday after a $1.2 million refurbishment.
Havelock Road Cooked Food Centre resumed business on May 1 after 7 months of upgrading with 30 cooked-food stalls equipped with new individual mechanical exhaust hoods and flue systems. -- ST PHOTO: LAU FOOK KONGIt resumed business on May 1 after 7 months of upgrading under the National Environment Agency's (NEA) Hawker Centres Upgrading Programme.
Jalan Besar GRC MP Lily Neo opened and toured the centre on Thursday.
With 30 cooked-food stalls, the one-storey building is now equipped with new individual mechanical exhaust hoods and flue systems.
It also boasts a seating capacity of 96 tables, up from the previous 77.
Other highlights include elderly and handicapped-friendly features such as ramps, wheelchair-friendly tables and toilets with nappy changing tables.
To date, 58 hawker or food centres have been upgraded and six centres are undergoing makeovers.
Orchard Condo Residents Disapprove Of Proposed Controversial By-Laws
Source : The Straits Times, Nov 1, 2007
THE controversial by-laws proposed by the management corporation (MC) of an Orchard area condo have failed to win the approval of its residents.
The set of proposed rules for dog owners in Richmond Park in Bideford Road - which would have, among other things, required owners to transport their pets in carrying cases within the compound - ended up amended at the condo's annual general meeting (AGM).
The other proposed by-laws, which would have given the MC powers to co-broke the sale and rental of units, were also sent back to the drawing table.
No vote was held over either issue at the AGM held over the weekend.
Those present, including 30 per cent of the condo's owner-residents, engaged the MC in open discussions, said a source who was present at the meeting.
This was about twice the number that turned up at the last AGM, said another resident.
MC chairman David Tan, who had drafted the proposals, told The Straits Times last week the dog rules came about because the condo had long put up with irresponsible dog-owners who did not pick up after their pets' droppings.
Besides rejecting the rule about transporting dogs in crates while in the condo's common areas, the residents also threw out the proposed monthly 'dog licence' payable to the MC - $30 for small dogs and $50 for large ones.
Instead, new proposals were raised and passed: including designated dustbins for the disposal of dog faeces and a designated lift for owners to travel with their pets.
Read the full report in Friday's edition of The Straits Times.
THE controversial by-laws proposed by the management corporation (MC) of an Orchard area condo have failed to win the approval of its residents.
The set of proposed rules for dog owners in Richmond Park in Bideford Road - which would have, among other things, required owners to transport their pets in carrying cases within the compound - ended up amended at the condo's annual general meeting (AGM).
The other proposed by-laws, which would have given the MC powers to co-broke the sale and rental of units, were also sent back to the drawing table.
No vote was held over either issue at the AGM held over the weekend.
Those present, including 30 per cent of the condo's owner-residents, engaged the MC in open discussions, said a source who was present at the meeting.
This was about twice the number that turned up at the last AGM, said another resident.
MC chairman David Tan, who had drafted the proposals, told The Straits Times last week the dog rules came about because the condo had long put up with irresponsible dog-owners who did not pick up after their pets' droppings.
Besides rejecting the rule about transporting dogs in crates while in the condo's common areas, the residents also threw out the proposed monthly 'dog licence' payable to the MC - $30 for small dogs and $50 for large ones.
Instead, new proposals were raised and passed: including designated dustbins for the disposal of dog faeces and a designated lift for owners to travel with their pets.
Read the full report in Friday's edition of The Straits Times.
Govt Won't Let Space Crunch Hinder Finance Hub Ambitions
Source : The Straits Times, Nov 1, 2007
The space crunch that has hit the office sector will not be allowed to derail Singapore's aim to be a key financial centre.
THE space crunch that has hit the office sector and sent rents soaring will not be allowed to derail Singapore's aim to be a key financial centre.
The pledge came from National Development Minister Mah Bow Tan, who also pointed out that the tight supply - itself a factor of the booming economy - provides a huge opportunity for developers and investors.
'The time is now,' said Mr Mah yesterday. 'There is no better time for investors to consider real estate development and investment opportunities in Singapore, given the robust outlook and comprehensive development plans we have in place.'
Mr Mah told the closed-door Macquarie Asia Forum 2007 that the supply shortage will be tackled in part by land releases that will be calibrated to allow developers to make informed decisions about their investments.
And he stressed that the Government's aspirations for developing Singapore as a major financial centre 'will not be constrained by space availability'.
Mr Mah's comments - the most forthright since the property market took off two to three years ago - could be a sign that the Government believes the problem is reaching a critical point.
'Overall, I think the Government will probably have to prioritise its investment plans, given the tight commercial and residential market and labour markets,' said Citigroup economist Chua Hak Bin.
'We may be reaching an inflexion point, where supply constraints and higher rents and wages are starting to bite.'
Government data shows that prime median rentals of new office leases are now at $11.89 per sq ft per month, compared with $5.05 at the end of 2004.
Rents for prime office space, which are in demand by players in the booming financial and business services sectors, have shot up on tight supply to the point where some companies are resisting the rapid increases by moving further out or to industrial locations.
But this is expected to be a short-term problem, with relief coming in 2010, when major projects such as Phase 1 of the Marina Bay Financial Centre are completed.
The Government has already taken steps to address the supply shortfall by releasing transitional office sites.
More space will be made available, but land releases will be 'calibrated and measured', with a view to meeting needs on a sustained basis, said Mr Mah.
There will also be a focus on developing new zones for financial and business hubs, including in Jurong and Paya Lebar, to take the heat off office space in the central business district.
Mr Chua backed the Government's view that growing the financial centre should remain a major priority.
'But other less important investment initiatives may need to take a back seat, to reduce the intense competition for workers, office space and construction materials,' he added.
Mr Mah also put the rent rises in a broader perspective: 'Despite the recent surge in demand, Singapore's office rentals remain very competitive compared to major cities like London, Tokyo and Hong Kong.'
DTZ Debenham Tie Leung executive director Ong Choon Fah told The Straits Times that London has consistently been the most expensive city in the world in terms of office rents.
'But it has always attracted businesses because that is where the talent and the money is,' said Ms Ong. 'At the end of the day, it's not just the costs but the value proposition that Singapore can offer.'
The space crunch that has hit the office sector will not be allowed to derail Singapore's aim to be a key financial centre.
THE space crunch that has hit the office sector and sent rents soaring will not be allowed to derail Singapore's aim to be a key financial centre.
The pledge came from National Development Minister Mah Bow Tan, who also pointed out that the tight supply - itself a factor of the booming economy - provides a huge opportunity for developers and investors.'The time is now,' said Mr Mah yesterday. 'There is no better time for investors to consider real estate development and investment opportunities in Singapore, given the robust outlook and comprehensive development plans we have in place.'
Mr Mah told the closed-door Macquarie Asia Forum 2007 that the supply shortage will be tackled in part by land releases that will be calibrated to allow developers to make informed decisions about their investments.
And he stressed that the Government's aspirations for developing Singapore as a major financial centre 'will not be constrained by space availability'.
Mr Mah's comments - the most forthright since the property market took off two to three years ago - could be a sign that the Government believes the problem is reaching a critical point.
'Overall, I think the Government will probably have to prioritise its investment plans, given the tight commercial and residential market and labour markets,' said Citigroup economist Chua Hak Bin.
'We may be reaching an inflexion point, where supply constraints and higher rents and wages are starting to bite.'
Government data shows that prime median rentals of new office leases are now at $11.89 per sq ft per month, compared with $5.05 at the end of 2004.
Rents for prime office space, which are in demand by players in the booming financial and business services sectors, have shot up on tight supply to the point where some companies are resisting the rapid increases by moving further out or to industrial locations.
But this is expected to be a short-term problem, with relief coming in 2010, when major projects such as Phase 1 of the Marina Bay Financial Centre are completed.
The Government has already taken steps to address the supply shortfall by releasing transitional office sites.
More space will be made available, but land releases will be 'calibrated and measured', with a view to meeting needs on a sustained basis, said Mr Mah.
There will also be a focus on developing new zones for financial and business hubs, including in Jurong and Paya Lebar, to take the heat off office space in the central business district.
Mr Chua backed the Government's view that growing the financial centre should remain a major priority.
'But other less important investment initiatives may need to take a back seat, to reduce the intense competition for workers, office space and construction materials,' he added.
Mr Mah also put the rent rises in a broader perspective: 'Despite the recent surge in demand, Singapore's office rentals remain very competitive compared to major cities like London, Tokyo and Hong Kong.'
DTZ Debenham Tie Leung executive director Ong Choon Fah told The Straits Times that London has consistently been the most expensive city in the world in terms of office rents.
'But it has always attracted businesses because that is where the talent and the money is,' said Ms Ong. 'At the end of the day, it's not just the costs but the value proposition that Singapore can offer.'
Chances Of US Recession Less Than 50%: Top Economist
Source : The Straits Times, Nov 1, 2007
THE United States economy might have slowed dramatically under the weight of its mortgage crisis, but the chance of a recession there is well under 50 per cent, a top economist says.
SLOW TO MEND: Dr Rogoff says the US is gradually working out its sub-prime problems, but the recovery will take longer in Europe, which ironically has taken the brunt of the fallout.
Former International Monetary Fund (IMF) chief economist Kenneth Rogoff said yesterday that credit market woes caused by mortgages given to risky US borrowers are being resolved.
But he feels the problem will linger longer in Europe, which ironically has taken the brunt of the US sub-prime mortgage fallout.
'Mr Greenspan's going around saying that the chance for a US recession is almost 50:50 now,' said Dr Rogoff, referring to former US central banker Alan Greenspan.
'I think the odds are considerably less than that,' Dr Rogoff noted.
While there are uncertainties about the extent of the sub-prime problem, 'on the whole, it's getting worked out', he said.
He was answering questions from the floor after giving a public lecture on global financial crises at the Lee Kuan Yew School of Public Policy.
He noted the resignation of US investment bank Merrill Lynch's chief executive, Mr Stan O'Neal, and the possible departure of Citigroup chief Chuck Prince.
'I would not be shocked if Citi or Merrill is forced into a merger to ensure sufficient capital to maintain operations,' said Dr Rogoff.
Both Citigroup and Merrill Lynch have reported billion-dollar losses from investments in sub-prime mortgages.
Recovery will be slower in Europe as banks there appear to have invested in the worst parts of the sub-prime debt, said Dr Rogoff, who is now a professor at Harvard University's economics department.
For the most part, Asian investors have somehow avoided the debacle, he said, adding that the early adoption of new global banking rules by Japanese banks has helped make them more resilient.
THE United States economy might have slowed dramatically under the weight of its mortgage crisis, but the chance of a recession there is well under 50 per cent, a top economist says.
SLOW TO MEND: Dr Rogoff says the US is gradually working out its sub-prime problems, but the recovery will take longer in Europe, which ironically has taken the brunt of the fallout.Former International Monetary Fund (IMF) chief economist Kenneth Rogoff said yesterday that credit market woes caused by mortgages given to risky US borrowers are being resolved.
But he feels the problem will linger longer in Europe, which ironically has taken the brunt of the US sub-prime mortgage fallout.
'Mr Greenspan's going around saying that the chance for a US recession is almost 50:50 now,' said Dr Rogoff, referring to former US central banker Alan Greenspan.
'I think the odds are considerably less than that,' Dr Rogoff noted.
While there are uncertainties about the extent of the sub-prime problem, 'on the whole, it's getting worked out', he said.
He was answering questions from the floor after giving a public lecture on global financial crises at the Lee Kuan Yew School of Public Policy.
He noted the resignation of US investment bank Merrill Lynch's chief executive, Mr Stan O'Neal, and the possible departure of Citigroup chief Chuck Prince.
'I would not be shocked if Citi or Merrill is forced into a merger to ensure sufficient capital to maintain operations,' said Dr Rogoff.
Both Citigroup and Merrill Lynch have reported billion-dollar losses from investments in sub-prime mortgages.
Recovery will be slower in Europe as banks there appear to have invested in the worst parts of the sub-prime debt, said Dr Rogoff, who is now a professor at Harvard University's economics department.
For the most part, Asian investors have somehow avoided the debacle, he said, adding that the early adoption of new global banking rules by Japanese banks has helped make them more resilient.
Orchard Road's $40M Overhaul - Not Enough 'Wow' In Big Makeover?
Source : The Straits Times, Nov 1, 2007
Businesses say overhaul is superficial and lacks impact
BUSINESSES are cheered by the $40 million overhaul to Orchard Road's pavements, street furniture and lighting, but they are also asking: 'Is that it?'
Mr Noel Hawkes, general manager of the now defunct Hotel Phoenix, said that, for a makeover that had been talked about for years, what was announced sounded like 'basic maintenance work'.
IN A JAM: The plans include replacing one lane in front of Wisma Atria with a wider pedestrian walkway, but some businesses worry that this will not help Orchard Road's traffic woes. -- ST PHOTO: ASHLEIGH SIM
Looking to Marina Bay, soon to be home to theatres, exhibitions and conventions, an Integrated Resort with a casino, retail centre, offices, apartments, gardens and Formula One races, he warned that Orchard Road was becoming a street of ageing hotels and malls 'in serious danger of falling behind'.
Those who spoke to The Straits Times echoed his thoughts and expressed hope that the plans are just the 'first' of more facelifts.
Mr Steven Goh of the Orchard Road Business Association (Orba) conceded that, though the $40 million budget is not something to sniff at, it will not be enough to pull off a makeover of greater impact.
Easily half the sum could be blown on the re-paving and lighting, leaving little left for features with a bigger 'wow' factor.
Examples of these include: more links between the malls and air-conditioned skybridges, a people-mover from Tanglin Mall to Plaza Singapura and closing the entire stretch to cars.
Industry players also note that the planned works do not cover the entire length of Orchard Road.
Works stop at Le Meridien, leaving the footpaths down to the Istana and Plaza Singapura untouched.
They say that nutmeg trees, flower totem planters and glass panels are all pretty to look at, but are superficial changes that fail to address major bugbears: connectivity and traffic.
Knight Frank's director of retail Danny Yeo said links between malls are needed beyond those now in the Scotts Road/Orchard Road cluster.
Malls now being built are required to have connections: Ion Orchard, for example, will have an underpass linking it to Wisma Atria and Wheelock Place. But Mr Yeo said links are also needed between other malls farther down the road, so shoppers can move from one mall to another easily.
When asked about this, the Urban Redevelopment Authority put the onus on mall owners to make private agreements. It added that cash incentives have been offered to encourage this.
But Mr Goh said: 'The reality speaks for itself. If the incentives are good enough, there would be more taking it up, right?'
Paragon's deputy general manager of marketing Patrina Tan said that, to overcome the industry's resistance and inertia, the Government still needs to take the lead. She pointed out that when Paragon proposed a link to Ngee Ann City a few years ago, it was turned down. Shoppers were the ultimate losers, she said.
The other problem is traffic congestion.
The Singapore Retailers' Association's executive director Lau Chuen Wei, referring to plans to shut down one car lane from Ion Orchard to Wisma Atria to make a wider pedestrian walkway, was unconvinced by the Land Transport Authority's assurance that it would not affect traffic flow.
'Nothing is being done to improve it either,' she said, noting that the jams were making people think twice about shopping there.
She added that unless more were to be done, the makeover plans would just be about 'pretty packaging' that did not go far enough to put Singapore's premier shopping belt on the world map.
Businesses say overhaul is superficial and lacks impact
BUSINESSES are cheered by the $40 million overhaul to Orchard Road's pavements, street furniture and lighting, but they are also asking: 'Is that it?'
Mr Noel Hawkes, general manager of the now defunct Hotel Phoenix, said that, for a makeover that had been talked about for years, what was announced sounded like 'basic maintenance work'.
IN A JAM: The plans include replacing one lane in front of Wisma Atria with a wider pedestrian walkway, but some businesses worry that this will not help Orchard Road's traffic woes. -- ST PHOTO: ASHLEIGH SIM
Looking to Marina Bay, soon to be home to theatres, exhibitions and conventions, an Integrated Resort with a casino, retail centre, offices, apartments, gardens and Formula One races, he warned that Orchard Road was becoming a street of ageing hotels and malls 'in serious danger of falling behind'.
Those who spoke to The Straits Times echoed his thoughts and expressed hope that the plans are just the 'first' of more facelifts.
Mr Steven Goh of the Orchard Road Business Association (Orba) conceded that, though the $40 million budget is not something to sniff at, it will not be enough to pull off a makeover of greater impact.
Easily half the sum could be blown on the re-paving and lighting, leaving little left for features with a bigger 'wow' factor.
Examples of these include: more links between the malls and air-conditioned skybridges, a people-mover from Tanglin Mall to Plaza Singapura and closing the entire stretch to cars.
Industry players also note that the planned works do not cover the entire length of Orchard Road.
Works stop at Le Meridien, leaving the footpaths down to the Istana and Plaza Singapura untouched.
They say that nutmeg trees, flower totem planters and glass panels are all pretty to look at, but are superficial changes that fail to address major bugbears: connectivity and traffic.
Knight Frank's director of retail Danny Yeo said links between malls are needed beyond those now in the Scotts Road/Orchard Road cluster.
Malls now being built are required to have connections: Ion Orchard, for example, will have an underpass linking it to Wisma Atria and Wheelock Place. But Mr Yeo said links are also needed between other malls farther down the road, so shoppers can move from one mall to another easily.
When asked about this, the Urban Redevelopment Authority put the onus on mall owners to make private agreements. It added that cash incentives have been offered to encourage this.
But Mr Goh said: 'The reality speaks for itself. If the incentives are good enough, there would be more taking it up, right?'
Paragon's deputy general manager of marketing Patrina Tan said that, to overcome the industry's resistance and inertia, the Government still needs to take the lead. She pointed out that when Paragon proposed a link to Ngee Ann City a few years ago, it was turned down. Shoppers were the ultimate losers, she said.
The other problem is traffic congestion.
The Singapore Retailers' Association's executive director Lau Chuen Wei, referring to plans to shut down one car lane from Ion Orchard to Wisma Atria to make a wider pedestrian walkway, was unconvinced by the Land Transport Authority's assurance that it would not affect traffic flow.
'Nothing is being done to improve it either,' she said, noting that the jams were making people think twice about shopping there.
She added that unless more were to be done, the makeover plans would just be about 'pretty packaging' that did not go far enough to put Singapore's premier shopping belt on the world map.
It's All About Accessibility
Source : The Business Times, November 1, 2007
CLARISSA TAN looks at why Standard Chartered has picked the upcoming Marina Bay Financial Centre to centralise its operations
WHEN it comes to choosing a location, banks say they look for one thing above all - accessibility.
Prime location: Marina Bay Financial Centre, the $2 billion waterfront development, will have its office blocks interspersed with retail, dining and landscaped public spaces
Proximity to train and bus stations, food outlets, shops and entertainment would help make their premises more efficient for customers and attractive to employees, they say.
Such factors were taken into account by Standard Chartered Bank, which will be making a massive move to the Marina Bay Financial Centre when the project's first phase is completed in 2010.
'It's about accessibility,' said Lim Cheng Teck, the bank's chief executive officer in Singapore. 'There is proximity to public transport, restaurants and food centres. It also fulfils today's lifestyle requirements, such as cycling to work or going to the gym.'
Standard Chartered has taken a 12-year lease on 24 of the 32 floors of Tower One in the financial centre.
The $2 billion waterfront development will have its office blocks interspersed with retail, dining and landscaped public spaces. The project will be connected to Singapore's Mass Rapid Transit system and will also be near the Esplanade arts centre and the planned Integrated Resort and Central Park.
Mateos Atamyan, a managing director at Bank Julius Baer, said that generally, the top criteria for banks when they choose a location are 'accessibility to mass transport, such as the MRT in Singapore, and the capability to satisfy all our technical requirements'.
Proximity to facilities: Julius Baer's Mr Atamyan (left) says the top criteria for banks when they choose a location are 'accessibility to mass transport, such as the MRT in Singapore, and the capability to satisfy all our technical requirements'. Standard Chartered's Mr Lim says the large tenancy in Tower One will help boost the bank's visibility and branding.
'Food and beverage outlets, a high-end restaurant, retail shops, conference facilities and sufficient parking lots for visitors are all important,' Mr Atamyan, who is also a member of the Singapore and Asian management committees at Julius Baer, added.
'I also think long-term rental packages should be made available other than the typical three-year rental contracts.'
The Marina Bay Financial Centre will consist of three towers in its first phase - two office towers of 32 and 50 storeys, and an apartment block, Marina Bay Residences.
Tower One was fully leased by August this year, three years ahead of its scheduled completion. Besides Standard Chartered, its tenants will include French investment bank Natixis and American investment adviser Wellington International Management Company.
The development, touted as Asia's version of Canary Wharf in London, is a joint venture between Cheung Kong Holdings, Hongkong Land and Keppel Land. It aims to provide what it calls an integrated 'live-work-play' environment.
Standard Chartered says the new location will also help the bank as its workforce expands.
The bank, which has Singapore as its global headquarters for private banking, has seen its staff numbers double to 4,600 in the past two years, Mr Lim said.
'We expect 6,000 or more staff by the time the new office opens,' he said. 'The way we see it, Singapore is a centre, and as our global business grows, we will also see a growth in headcount.'
Standard Chartered also manages its global consumer banking businesses out of Singapore and its international head for technology and operations is based here.
The financial centre and its live-work-play concept may even help attract potential employees, he said.
'If I were given a choice between an office location that has all the facilities and one that has not, I would definitely go for the former,' he said.
Standard Chartered's prominent new location - the Marina Bay Financial Centre is in the heart of the new downtown - will be apt for a bank that derives about three-quarters of its income from Asia, Mr Lim said. While Standard Chartered is London-based, 90 per cent of its profits come from Asia, Africa and the Middle East.
'Housing all our operations in one building will also improve efficiency,' said Mr Lim. 'Operationally, we are currently not as efficient as we'd like' as Standard Chartered has several locations across Singapore, he added.
He said the centralisation in Marina Bay would create greater efficiency in everything from the use of computer servers to holding office meetings.
Standard Chartered's principal office in Singapore is at 6 Battery Road, but it currently also has key operations in Plaza By The Park, CPF Tampines, UOB Building and OUB Centre.
The large tenancy in Tower One will also help boost the bank's visibility and branding, said Mr Lim. The premises will overlook the bay and other future landmarks such as the Singapore Flyer.
'We will have an unobstructed view facing the ECP and other things such as the Integrated Resort - we will get visibility,' said Mr Lim.
Commenting on what makes a world-class financial centre, Julius Baer's Mr Atamyan said that besides the actual office space, service is key.
'It is not just the hardware or physical building that matters,' he said. 'Image-building is crucial and good services can also make a difference, such as giving anchor tenants direct access to their floors, and good maintenance and fast response time by building management.'
The choice of a bank's location depends on the nature of its use such as whether it is meant for the bank's headquarters, backroom operations or branches, said Koh Ching Ching, head of group corporate communications of Singapore-based OCBC Bank.
'It is also dependent on the types of services to be rendered and the segment of customers served,' she said. 'For example, when we review the locations for our branches, we take into consideration accessibility, customers' needs, customer convenience to ensure that we provide convenient services to meet our customers' needs islandwide.'
David Martin, the general manager of the Marina Bay Financial Centre, said the project will add around 150,000 square metres to existing premium office space in Singapore.
Combined with the 120,000 square metres at the adjacent One Raffles Quay, also by the same joint venture, that would double the supply of top-tier office space in the central business district, he said.
CLARISSA TAN looks at why Standard Chartered has picked the upcoming Marina Bay Financial Centre to centralise its operations
WHEN it comes to choosing a location, banks say they look for one thing above all - accessibility.
Prime location: Marina Bay Financial Centre, the $2 billion waterfront development, will have its office blocks interspersed with retail, dining and landscaped public spacesProximity to train and bus stations, food outlets, shops and entertainment would help make their premises more efficient for customers and attractive to employees, they say.
Such factors were taken into account by Standard Chartered Bank, which will be making a massive move to the Marina Bay Financial Centre when the project's first phase is completed in 2010.
'It's about accessibility,' said Lim Cheng Teck, the bank's chief executive officer in Singapore. 'There is proximity to public transport, restaurants and food centres. It also fulfils today's lifestyle requirements, such as cycling to work or going to the gym.'Standard Chartered has taken a 12-year lease on 24 of the 32 floors of Tower One in the financial centre.
The $2 billion waterfront development will have its office blocks interspersed with retail, dining and landscaped public spaces. The project will be connected to Singapore's Mass Rapid Transit system and will also be near the Esplanade arts centre and the planned Integrated Resort and Central Park.
Mateos Atamyan, a managing director at Bank Julius Baer, said that generally, the top criteria for banks when they choose a location are 'accessibility to mass transport, such as the MRT in Singapore, and the capability to satisfy all our technical requirements'.
Proximity to facilities: Julius Baer's Mr Atamyan (left) says the top criteria for banks when they choose a location are 'accessibility to mass transport, such as the MRT in Singapore, and the capability to satisfy all our technical requirements'. Standard Chartered's Mr Lim says the large tenancy in Tower One will help boost the bank's visibility and branding. 'Food and beverage outlets, a high-end restaurant, retail shops, conference facilities and sufficient parking lots for visitors are all important,' Mr Atamyan, who is also a member of the Singapore and Asian management committees at Julius Baer, added.
'I also think long-term rental packages should be made available other than the typical three-year rental contracts.'
The Marina Bay Financial Centre will consist of three towers in its first phase - two office towers of 32 and 50 storeys, and an apartment block, Marina Bay Residences.
Tower One was fully leased by August this year, three years ahead of its scheduled completion. Besides Standard Chartered, its tenants will include French investment bank Natixis and American investment adviser Wellington International Management Company.
The development, touted as Asia's version of Canary Wharf in London, is a joint venture between Cheung Kong Holdings, Hongkong Land and Keppel Land. It aims to provide what it calls an integrated 'live-work-play' environment.
Standard Chartered says the new location will also help the bank as its workforce expands.
The bank, which has Singapore as its global headquarters for private banking, has seen its staff numbers double to 4,600 in the past two years, Mr Lim said.
'We expect 6,000 or more staff by the time the new office opens,' he said. 'The way we see it, Singapore is a centre, and as our global business grows, we will also see a growth in headcount.'
Standard Chartered also manages its global consumer banking businesses out of Singapore and its international head for technology and operations is based here.
The financial centre and its live-work-play concept may even help attract potential employees, he said.
'If I were given a choice between an office location that has all the facilities and one that has not, I would definitely go for the former,' he said.
Standard Chartered's prominent new location - the Marina Bay Financial Centre is in the heart of the new downtown - will be apt for a bank that derives about three-quarters of its income from Asia, Mr Lim said. While Standard Chartered is London-based, 90 per cent of its profits come from Asia, Africa and the Middle East.
'Housing all our operations in one building will also improve efficiency,' said Mr Lim. 'Operationally, we are currently not as efficient as we'd like' as Standard Chartered has several locations across Singapore, he added.
He said the centralisation in Marina Bay would create greater efficiency in everything from the use of computer servers to holding office meetings.
Standard Chartered's principal office in Singapore is at 6 Battery Road, but it currently also has key operations in Plaza By The Park, CPF Tampines, UOB Building and OUB Centre.
The large tenancy in Tower One will also help boost the bank's visibility and branding, said Mr Lim. The premises will overlook the bay and other future landmarks such as the Singapore Flyer.
'We will have an unobstructed view facing the ECP and other things such as the Integrated Resort - we will get visibility,' said Mr Lim.
Commenting on what makes a world-class financial centre, Julius Baer's Mr Atamyan said that besides the actual office space, service is key.
'It is not just the hardware or physical building that matters,' he said. 'Image-building is crucial and good services can also make a difference, such as giving anchor tenants direct access to their floors, and good maintenance and fast response time by building management.'
The choice of a bank's location depends on the nature of its use such as whether it is meant for the bank's headquarters, backroom operations or branches, said Koh Ching Ching, head of group corporate communications of Singapore-based OCBC Bank.
'It is also dependent on the types of services to be rendered and the segment of customers served,' she said. 'For example, when we review the locations for our branches, we take into consideration accessibility, customers' needs, customer convenience to ensure that we provide convenient services to meet our customers' needs islandwide.'
David Martin, the general manager of the Marina Bay Financial Centre, said the project will add around 150,000 square metres to existing premium office space in Singapore.
Combined with the 120,000 square metres at the adjacent One Raffles Quay, also by the same joint venture, that would double the supply of top-tier office space in the central business district, he said.
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