《联合早报》Apr 18, 2008
不少在新加坡工作的美国人因为房价高涨而选择搬离市区，“进驻 ”租金较便宜的地区如东海岸和西海岸，也将孩子送到新加坡学校就读。另外，鉴于美国政府税收政策使美国人在职场上显得更“昂贵”，有更多企业开始选择雇用新加坡人
新加坡美国商会执行理事长拉文基(Dom LaVigne)在美国商会的一项记者会上指出，美元疲软，新加坡房租和物价水涨船高，在新加坡工作的美国人感到生活成本剧增的冲击，纷纷寻求对策。
他说：“更多美国人开始以新元计酬，而不采纳外籍工作人士（ expatriate）配套；也因负担不起国际学校，而选择把孩子送入新加坡学校就读。去年急骤飙升的房价，也使很多美国家庭把住家从黄金地段迁移到东海岸及西海岸。”
一般上，以美元计酬的外籍工作人士配套除了基本薪金之外也提供房屋和教育津贴，以新元支薪的新加坡工资配套则只限基本酬劳。美国政府在2006年实施新税务条例，规定在海外工作、年收入8万6000 美元以上的美国人必须缴交所得税。
尽管目前在新加坡工作的美国人绝大多数仍以美元计薪，但拉文基指出，领取新元工资是可预见的长远趋势。
他说：“领取外籍工资配套内的美国人，必须缴交28-35％的所得税，房屋及教育津贴也列入纳税范围内，因此总税务负担比领取当地工资配套相对庞大。”
他认为，这项规定不但减少了许多海外美国人的实质收入，也使企业更倾向于雇用新加坡人。
他说：“一些为员工负担税务的企业基于预算考量，而更倾向于雇用欧洲、澳洲人等其他国籍的人士。另外，新加坡有许多国外受教育、十分优秀的员工，一些企业只让美国雇员来新两三年，训练新加坡经理完毕后就回国。”
但他也不忘强调，美国人对来新工作的长期展望仍然十分乐观，认为新加坡的生活环境比亚洲其他地区具竞争力，越来越多人在选择新加坡永久居留。
目前，约有15万5000名美国人在新加坡的3000多家公司工作，数目比两三年前的14万人有所增加。据他所知，明后年将有约一两千名美国人应聘来新，加入新加坡金融业。
他说：“我知道有一家金融机构打算在这两年内带进一两千名员工，一些公司仍会从国外引进员工，有的则从区域如香港调来新加坡。他们觉得新加坡的生活品质较佳，尽管近来物价高涨，但与香港比起来，这里的生活成本仍较低廉、具竞争力。”
美国商会代表团昨天到访新加坡会晤政府及商界人士，针对新美贸易课题收集反馈，为美国总统候选人提供美国与亚细安关系提供政见建议为参考。
美国在新加坡2006年的总投资额为604亿美元，年同比增长26％，大多集中于制造、金融、批发贸易和银行业。总值105亿美元的双边贸易（服务界）也创14年新高。
Friday, April 18, 2008
Sub-Prime Crisis Not Over Yet
Source : The Business Times, April 18, 2008
By SURESH MENON, FOREIGN EDITOR
HOWARD Davies, the director of the London School of Economics (LSE), has served the global financial community in various ways. He was the deputy governor of the Bank of England, chairman of the UK's Financial Services Authority, director general of the Confederation of British Industry and Controller of the Audit Commission. In 2004 he joined the board of Morgan Stanley as a non-executive director. To top it all in a literary way, in 2007 he chaired the jury of the Man Booker Prize for fiction.
'The crisis is not over. Fed actions may have reduced the panic, but the downturn scenario for the rest of the year still remains.'- Mr Davies
Last week in Singapore for the LSE Asia Forum 2008, he spoke to Business Times exclusively on the sub-prime contagion and the global financial architecture.
Excerpts from the interview:
Are we anywhere near an end to the sub-prime crisis?
We are not fully through this crisis. In the US, big investment banks have now taken most of the pain. A little bit more is possible if house prices continue to tumble. Mainly, they have provided for that. They have also taken most of the heat from the leveraged financing and private equity loans they committed to in good times, which are now loss-making. But still more remains to be disclosed in other parts of the market and some US regional banks or European ones have not reported, or written down, their exposure to adequate levels.
Big banks are not in such a bad position after the Federal Reserve opened the discount window. Liquidity fears are dying compared to the time of the Bear Stearns debacle. Things are getting better on Wall Street. But with the US economy into a recession, you have different classes of losses emerging - not the exotic types like financial engineering, etc ... Ordinary corporate loans are bound to rise. Consumer credit will decline in quality. So a second wave of losses is emerging. Also, one cannot really see any signs of big hedge funds saying things have bottomed out. So in that sense this crisis is not over. Fed actions may have reduced the panic, but the downturn scenario for the rest of the year remains.
Talk about central bank intervention, government supervision and regulatory regimes is becoming more pronounced.
It's clear that there will be regulatory changes in the US as a result of the Fed opening the discount window and accepting more collateral etc.. The Fed is not likely to carry out that regime without wanting something in return. That something could be reduced leverage in the investment banks. There are already discussions between the Fed and the investment banks on that. Also the rating agencies would be required to segregate their business and their consultancy to avoid conflicts of interest. That is pretty much inevitable.
Changes to Basle II (the 2004 accord on banking laws and regulations including capital adequacy ratios, etc) to make it more sensitive to liquidity are underway as well. All these are natural consequences to what happened. Also, there is a lot of political noise by people who do not know what they are talking about. That will take time to settle down.
Leaders and institutions feel they need to come out with some statement about regulatory initiative. Most of it does not mean anything. What emerges from the Financial Stability Forum is likely to be the key. There is also this big agenda for the banks themselves to pursue. Banks will have to improve themselves.
Do you expect any more Bear Stearns? Citibank going bust, for instance?
Well, not Citibank. The Fed would step in or else that would cause problems all over, including in Singapore. Also, big banks have access to liquidity. But it would be surprising if there were no other failures in the US and elsewhere - but probably not systemic bank failures. Germany and UK have witnessed some failures. More could happen elsewhere and even in Asia because many have been slow to report.
Where do China and India fit in? Do they have the ability to cushion the shock?
Chinese and Indian banks have not been massively affected. They were not big in the sub-prime market. One consequence of the US slowdown would be reduction in the US trade deficit, which is already happening. Chinese exports grew only 6 per cent last year against 20 per cent before. India is more reliant on domestic demand than exports, unlike China. But China's growth also is more rebalanced now towards domestic demand. But one cannot decouple globalisation and all the other things happening around. There will be an impact. If the US recession is not long and deep, there will be only a shaving of growth rates in India and China and not a complete collapse.
What about headlines like 'Is capitalism dead'? Do you expect pressure on countries and leaders not to let free markets prevail in the long term?
There are both political and technical debates on this. The technical debate is, to what extent central banks take into account asset prices while setting the monetary policy. That is a 'bloodless' way of asking the question whether capitalism is dead. In other words, the debate is whether central banks should take notice when irrational exuberance is underway in the market. People who say 'yes' are winning the argument. They are persuasively arguing that central banks should not ignore asset prices like before. Inflation in stock prices or property need to be taken into account.
A change in central banking orthodoxy is likely because of this crisis. That may lead to a more interventionist approach by them in the asset market. A massive reaction against 'Anglo-Saxon capitalism' is probably not likely.
The distribution model is under some threat. A tilt back towards more conventional banking practices is possible. Legislation to ban certain practices in capital markets are relatively unlikely. What we will see is a variety of technical central banking responses depending on the recession and pick-up scenario. If the world falls into a major recession, political forces then will become much stronger. That scenario is hard to predict. Despite the pessimistic scenario I don't see a deep or global recession.
In your book (Global Financial Regulation, The Essential Guide) you argued that there should be more participation of developing countries in global financial institutions.
There is a big issue there of legitimacy. The Basel committee has 13 members, 10 from Europe. In the banking system, three of the top 10 banks are Chinese. It's pretty crazy they are not involved. Western governments have been very slow to recognise the implications of globalised financial markets. For instance, the Basel II capital accord was devised entirely without reference to Islamic financial institutions. We need to have more representative bodies.
You cannot expect countries like India and China to follow these rules when they were not consulted in the first place. But it also requires countries brought in to behave in a different way. You now have emerging market representatives in some international bodies who sit there and think how does this affect their interest. You can't be like that. You have to leave your Chinese or Indian attire at home and cooperate to make global rules for the general good. Europeans and Americans do that. But one must admit it's also part of a general issue, as is the case with the UN Security Council representation.
One consequence of this crisis will be that people will say we really have to overhaul these institutions.
What is happening to the commodity markets and food prices?
There have been some curious market interventions. Subsidies to produce bio-fuels in the US have diverted corn production to oils. There are some very peculiar goings on in commodity markets. The root of the problem is misguided government interventions.
The yuan is appreciating; Singapore, for instance, is pursuing a strong currency policy to combat inflation. What are the implications amid the current slowdown?
Depreciation of the US dollar is serving to offset recessionary pressures in the US. That is welcome. Massive deflationary effect from the housing market is flowing to consumer spending. But you got some offset in the form of American manufacturing. US cars are being exported, for a change, after a long time. And the rest of the world should not seek to resist. That would perpetuate global imbalances.
Since last year or so the Chinese have been behaving statesman-like. It's no coincidence that the renminbi started moving when Americans stopped shouting about it. All this is generally beneficial. Any sharp currency movements, however, will cause casualties. But generally the movements have been quite positive. Of course one has to watch the inflationary consequences of these moves. But given the economy is slowing globally, inflation should not be a worry. Manufacturers will get a nasty surprise if they tend to raise prices now.
By SURESH MENON, FOREIGN EDITOR
HOWARD Davies, the director of the London School of Economics (LSE), has served the global financial community in various ways. He was the deputy governor of the Bank of England, chairman of the UK's Financial Services Authority, director general of the Confederation of British Industry and Controller of the Audit Commission. In 2004 he joined the board of Morgan Stanley as a non-executive director. To top it all in a literary way, in 2007 he chaired the jury of the Man Booker Prize for fiction.
'The crisis is not over. Fed actions may have reduced the panic, but the downturn scenario for the rest of the year still remains.'- Mr DaviesLast week in Singapore for the LSE Asia Forum 2008, he spoke to Business Times exclusively on the sub-prime contagion and the global financial architecture.
Excerpts from the interview:
Are we anywhere near an end to the sub-prime crisis?
We are not fully through this crisis. In the US, big investment banks have now taken most of the pain. A little bit more is possible if house prices continue to tumble. Mainly, they have provided for that. They have also taken most of the heat from the leveraged financing and private equity loans they committed to in good times, which are now loss-making. But still more remains to be disclosed in other parts of the market and some US regional banks or European ones have not reported, or written down, their exposure to adequate levels.
Big banks are not in such a bad position after the Federal Reserve opened the discount window. Liquidity fears are dying compared to the time of the Bear Stearns debacle. Things are getting better on Wall Street. But with the US economy into a recession, you have different classes of losses emerging - not the exotic types like financial engineering, etc ... Ordinary corporate loans are bound to rise. Consumer credit will decline in quality. So a second wave of losses is emerging. Also, one cannot really see any signs of big hedge funds saying things have bottomed out. So in that sense this crisis is not over. Fed actions may have reduced the panic, but the downturn scenario for the rest of the year remains.
Talk about central bank intervention, government supervision and regulatory regimes is becoming more pronounced.
It's clear that there will be regulatory changes in the US as a result of the Fed opening the discount window and accepting more collateral etc.. The Fed is not likely to carry out that regime without wanting something in return. That something could be reduced leverage in the investment banks. There are already discussions between the Fed and the investment banks on that. Also the rating agencies would be required to segregate their business and their consultancy to avoid conflicts of interest. That is pretty much inevitable.
Changes to Basle II (the 2004 accord on banking laws and regulations including capital adequacy ratios, etc) to make it more sensitive to liquidity are underway as well. All these are natural consequences to what happened. Also, there is a lot of political noise by people who do not know what they are talking about. That will take time to settle down.
Leaders and institutions feel they need to come out with some statement about regulatory initiative. Most of it does not mean anything. What emerges from the Financial Stability Forum is likely to be the key. There is also this big agenda for the banks themselves to pursue. Banks will have to improve themselves.
Do you expect any more Bear Stearns? Citibank going bust, for instance?
Well, not Citibank. The Fed would step in or else that would cause problems all over, including in Singapore. Also, big banks have access to liquidity. But it would be surprising if there were no other failures in the US and elsewhere - but probably not systemic bank failures. Germany and UK have witnessed some failures. More could happen elsewhere and even in Asia because many have been slow to report.
Where do China and India fit in? Do they have the ability to cushion the shock?
Chinese and Indian banks have not been massively affected. They were not big in the sub-prime market. One consequence of the US slowdown would be reduction in the US trade deficit, which is already happening. Chinese exports grew only 6 per cent last year against 20 per cent before. India is more reliant on domestic demand than exports, unlike China. But China's growth also is more rebalanced now towards domestic demand. But one cannot decouple globalisation and all the other things happening around. There will be an impact. If the US recession is not long and deep, there will be only a shaving of growth rates in India and China and not a complete collapse.
What about headlines like 'Is capitalism dead'? Do you expect pressure on countries and leaders not to let free markets prevail in the long term?
There are both political and technical debates on this. The technical debate is, to what extent central banks take into account asset prices while setting the monetary policy. That is a 'bloodless' way of asking the question whether capitalism is dead. In other words, the debate is whether central banks should take notice when irrational exuberance is underway in the market. People who say 'yes' are winning the argument. They are persuasively arguing that central banks should not ignore asset prices like before. Inflation in stock prices or property need to be taken into account.
A change in central banking orthodoxy is likely because of this crisis. That may lead to a more interventionist approach by them in the asset market. A massive reaction against 'Anglo-Saxon capitalism' is probably not likely.
The distribution model is under some threat. A tilt back towards more conventional banking practices is possible. Legislation to ban certain practices in capital markets are relatively unlikely. What we will see is a variety of technical central banking responses depending on the recession and pick-up scenario. If the world falls into a major recession, political forces then will become much stronger. That scenario is hard to predict. Despite the pessimistic scenario I don't see a deep or global recession.
In your book (Global Financial Regulation, The Essential Guide) you argued that there should be more participation of developing countries in global financial institutions.
There is a big issue there of legitimacy. The Basel committee has 13 members, 10 from Europe. In the banking system, three of the top 10 banks are Chinese. It's pretty crazy they are not involved. Western governments have been very slow to recognise the implications of globalised financial markets. For instance, the Basel II capital accord was devised entirely without reference to Islamic financial institutions. We need to have more representative bodies.
You cannot expect countries like India and China to follow these rules when they were not consulted in the first place. But it also requires countries brought in to behave in a different way. You now have emerging market representatives in some international bodies who sit there and think how does this affect their interest. You can't be like that. You have to leave your Chinese or Indian attire at home and cooperate to make global rules for the general good. Europeans and Americans do that. But one must admit it's also part of a general issue, as is the case with the UN Security Council representation.
One consequence of this crisis will be that people will say we really have to overhaul these institutions.
What is happening to the commodity markets and food prices?
There have been some curious market interventions. Subsidies to produce bio-fuels in the US have diverted corn production to oils. There are some very peculiar goings on in commodity markets. The root of the problem is misguided government interventions.
The yuan is appreciating; Singapore, for instance, is pursuing a strong currency policy to combat inflation. What are the implications amid the current slowdown?
Depreciation of the US dollar is serving to offset recessionary pressures in the US. That is welcome. Massive deflationary effect from the housing market is flowing to consumer spending. But you got some offset in the form of American manufacturing. US cars are being exported, for a change, after a long time. And the rest of the world should not seek to resist. That would perpetuate global imbalances.
Since last year or so the Chinese have been behaving statesman-like. It's no coincidence that the renminbi started moving when Americans stopped shouting about it. All this is generally beneficial. Any sharp currency movements, however, will cause casualties. But generally the movements have been quite positive. Of course one has to watch the inflationary consequences of these moves. But given the economy is slowing globally, inflation should not be a worry. Manufacturers will get a nasty surprise if they tend to raise prices now.
Time To Act Against Rogue Housing Agents
Source : TODAY, Friday, April 18, 2008
Letter from RAYMOND NG
COMPLAINTS against real estate agents are rising. According to the latest statistics, more than 1,000 reports have been lodged with the Consumers Association of Singapore and the Inland Revenue Authority.
I am puzzled why little has been done to eradicate the presence of unethical agents who offer wrong advice and short-change buyers and sellers in a booming sector.
It is time the industry is revamped.
Real estate licences are issued to applicants meeting minimum standards. While it is good to allow many to own and operate real estate agencies, there are few criteria to ascertain their “quality”.
For example, there is no control in the number of agents each agency is allowed to recruit. Size does not always equate with excellence.
Furthermore, real estate agents are not considered employees but associates of the respective agencies. This creates even more weakness from the point of performance standards and control.
In developed economies such as the United States, Canada and Australia, real estate agencies must treat all agents as employees instead of associates.
From the legal perspective, this means that if agents commit any malpractice, the agency will be penalised as well.
Agencies in Canada, for example, even blacklist and post offenders’ names on the Board of Real Estate websites and bulletin boards to alert consumers.
Perhaps, we should adopt this practice.
I would also like to propose that the size of each agency be restricted to a ratio of one manager to, say, seven Ceha-certified (Common Examination for House
Agents) agents.
In essence, the authority should be empowered to implement stricter penalties, such as revocation or suspension of real estate licences and a longer jail term for those guilty of real estate crimes.
We need to act now to rebuild the spirit of and trust in the real estate industry.
Letter from RAYMOND NG
COMPLAINTS against real estate agents are rising. According to the latest statistics, more than 1,000 reports have been lodged with the Consumers Association of Singapore and the Inland Revenue Authority.
I am puzzled why little has been done to eradicate the presence of unethical agents who offer wrong advice and short-change buyers and sellers in a booming sector.It is time the industry is revamped.
Real estate licences are issued to applicants meeting minimum standards. While it is good to allow many to own and operate real estate agencies, there are few criteria to ascertain their “quality”.
For example, there is no control in the number of agents each agency is allowed to recruit. Size does not always equate with excellence.
Furthermore, real estate agents are not considered employees but associates of the respective agencies. This creates even more weakness from the point of performance standards and control.
In developed economies such as the United States, Canada and Australia, real estate agencies must treat all agents as employees instead of associates.
From the legal perspective, this means that if agents commit any malpractice, the agency will be penalised as well.
Agencies in Canada, for example, even blacklist and post offenders’ names on the Board of Real Estate websites and bulletin boards to alert consumers.
Perhaps, we should adopt this practice.
I would also like to propose that the size of each agency be restricted to a ratio of one manager to, say, seven Ceha-certified (Common Examination for House
Agents) agents.
In essence, the authority should be empowered to implement stricter penalties, such as revocation or suspension of real estate licences and a longer jail term for those guilty of real estate crimes.
We need to act now to rebuild the spirit of and trust in the real estate industry.
Still Friends, No Matter What
Source : TODAY, Friday, April 18, 2008
PM 'positive' on M'sian rail link, Pedra Branca ruling won't affect ties: George Yeo
AS Malaysia's political landscape continues to feel the ripples from last month's elections, its newly-appointed Foreign Minister has assured Singaporeans — those wondering about the polls' possible impact on cross-strait ties — that the relationship will do better than to remain in its "status quo".
"Status quo means just as it was. It should be one grade up and we will do this as a fervour, as a push," said Dr Rais Yatim, the first Malaysian Cabinet Minister to visit the Republic since the March 8 polls.
At a joint doorstop interview yesterday, Dr Rais and his Singapore counterpart George Yeo — both referred to each other as "my good friend" or "dear friend" — seemed keen to emphasise that the "forging ahead" of bilateral ties would not be derailed.
For instance, with the International Court of Justice due to make its judgment on Pedra Branca known next month, Mr Yeo said: "Both of us have agreed that if Malaysia were to win, then we will congratulate Malaysia."
If Singapore were to win, Dr Rias would offer his congratulations and "whatever the decision, we will accept it and it will not affect bilateral relations", Mr Yeo said. For years, the lighthouse has been a thorn in the relationship, with both nations referring the matter to The Hague in 2003.
Two other barometers of warm ties were raised: The positive vibes over a proposed urban rail link between Singapore and Malaysia; and Wednesday's launch of a marketing office for the Iskandar Malaysia project at UOB Plaza, welcomed by Mr Yeo.
In the strongest signals yet from Singapore about the MRT link to the Iskandar development, Mr Yeo said Prime Minister Lee Hsien Loong had "responded positively" to the idea at a morning meeting with Dr Rais.
"The link should not be a difficult one and it will bring immediate advantages to both sides," said Mr Yeo, adding that the issue would be ironed out by the Singapore-Malaysia Joint Ministerial Committee.
Asked if there was a timeline for building the rail link, Dr Rais said it was "too early" to say. Last month, Johor Chief Minister Abdul Ghani Othman had said he hoped the link would "materialise in two to three years' time".
Singapore is Dr Rais' first stop in his round of introductory overseas visits as Foreign Minister. This is a "special honour" for which Singapore is "very touched", said
Mr Yeo who described this as an expression of the "special relationship".
Besides Mr Lee and Mr Yeo, Dr Rais also called on Deputy Prime Minister
S Jayakumar, Minister Mentor Lee Kuan Yew and Senior Minister Goh Chok Tong during his one-day visit.
Yesterday, as Dr Rais fielded questions from the media about the political scene and possible leadership change in Malaysia — following the Barisan Nasional's loss of its two-third parliamentary majority and its worst performance at the polls since independence — Mr Yeo steered clear of commenting.
Both ministers highlighted the economic importance of one country to the other, and hence the need for cooperation. Singapore, Dr Rais noted, was Malaysia's second biggest business partner after the United States, "that is to say, about RM142-billion-a-year ($60-billion-a-year) worth of relationship".
He added: "Like they say most of the time, money may be root of all evil, but sometimes it eases the nerves. That is the jovial way of saying that we need each other.
"The commonalities between the two nations should be on our top priority list and the differences, whatever they are, should be left to be scored later."
PM 'positive' on M'sian rail link, Pedra Branca ruling won't affect ties: George Yeo
AS Malaysia's political landscape continues to feel the ripples from last month's elections, its newly-appointed Foreign Minister has assured Singaporeans — those wondering about the polls' possible impact on cross-strait ties — that the relationship will do better than to remain in its "status quo".
"Status quo means just as it was. It should be one grade up and we will do this as a fervour, as a push," said Dr Rais Yatim, the first Malaysian Cabinet Minister to visit the Republic since the March 8 polls.At a joint doorstop interview yesterday, Dr Rais and his Singapore counterpart George Yeo — both referred to each other as "my good friend" or "dear friend" — seemed keen to emphasise that the "forging ahead" of bilateral ties would not be derailed.
For instance, with the International Court of Justice due to make its judgment on Pedra Branca known next month, Mr Yeo said: "Both of us have agreed that if Malaysia were to win, then we will congratulate Malaysia."
If Singapore were to win, Dr Rias would offer his congratulations and "whatever the decision, we will accept it and it will not affect bilateral relations", Mr Yeo said. For years, the lighthouse has been a thorn in the relationship, with both nations referring the matter to The Hague in 2003.
Two other barometers of warm ties were raised: The positive vibes over a proposed urban rail link between Singapore and Malaysia; and Wednesday's launch of a marketing office for the Iskandar Malaysia project at UOB Plaza, welcomed by Mr Yeo.
In the strongest signals yet from Singapore about the MRT link to the Iskandar development, Mr Yeo said Prime Minister Lee Hsien Loong had "responded positively" to the idea at a morning meeting with Dr Rais.
"The link should not be a difficult one and it will bring immediate advantages to both sides," said Mr Yeo, adding that the issue would be ironed out by the Singapore-Malaysia Joint Ministerial Committee.
Asked if there was a timeline for building the rail link, Dr Rais said it was "too early" to say. Last month, Johor Chief Minister Abdul Ghani Othman had said he hoped the link would "materialise in two to three years' time".
Singapore is Dr Rais' first stop in his round of introductory overseas visits as Foreign Minister. This is a "special honour" for which Singapore is "very touched", said
Mr Yeo who described this as an expression of the "special relationship".
Besides Mr Lee and Mr Yeo, Dr Rais also called on Deputy Prime Minister
S Jayakumar, Minister Mentor Lee Kuan Yew and Senior Minister Goh Chok Tong during his one-day visit.
Yesterday, as Dr Rais fielded questions from the media about the political scene and possible leadership change in Malaysia — following the Barisan Nasional's loss of its two-third parliamentary majority and its worst performance at the polls since independence — Mr Yeo steered clear of commenting.
Both ministers highlighted the economic importance of one country to the other, and hence the need for cooperation. Singapore, Dr Rais noted, was Malaysia's second biggest business partner after the United States, "that is to say, about RM142-billion-a-year ($60-billion-a-year) worth of relationship".
He added: "Like they say most of the time, money may be root of all evil, but sometimes it eases the nerves. That is the jovial way of saying that we need each other.
"The commonalities between the two nations should be on our top priority list and the differences, whatever they are, should be left to be scored later."
HDB Draws Curtains On Bi-Monthly Flat Sales
Source : TODAY, Friday, April 18, 2008
THE Housing and Development Board (HDB) received 5,700 applications for 490 flats in its final bi-monthly sale of four-room and larger units that closed on Wednesday.
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Bi-monthly sale exercises attract more applicants and a higher take-up rate, as the flats on offer are either completed or nearing completion, said the HDB.
But with the progressive clearance exercises of unsold flats, fewer units are left available on a walk-in basis — and, as earlier announced, the HDB will offer its three-room premium and larger flats under half-yearly sale exercises, instead of bi-monthly.
Prospective buyers are advised to opt for the Build-to-Order (BTO) system — in which flats take about three years to complete — that make up the main supply of new flats.
From this month until September, the HDB plans to offer 5,000 new BTO flats in Punggol, Sengkang, Woodlands and Bukit Panjang.
Demand had been high at recent BTO sales, noted the HDB, but a significant number of applicants did not buy a flat.
Hence, as it previously announced, the board is reviewing the system to discourage non-serious applicants from crowding out those with more pressing housing needs.
For example, 1,284 applications were received for the 698 flats offered under the Coral Spring project in Sengkang last September but more than 200 flats were left unsold after the exercise.
THE Housing and Development Board (HDB) received 5,700 applications for 490 flats in its final bi-monthly sale of four-room and larger units that closed on Wednesday.
+Logo.jpg)
Bi-monthly sale exercises attract more applicants and a higher take-up rate, as the flats on offer are either completed or nearing completion, said the HDB.But with the progressive clearance exercises of unsold flats, fewer units are left available on a walk-in basis — and, as earlier announced, the HDB will offer its three-room premium and larger flats under half-yearly sale exercises, instead of bi-monthly.
Prospective buyers are advised to opt for the Build-to-Order (BTO) system — in which flats take about three years to complete — that make up the main supply of new flats.
From this month until September, the HDB plans to offer 5,000 new BTO flats in Punggol, Sengkang, Woodlands and Bukit Panjang.
Demand had been high at recent BTO sales, noted the HDB, but a significant number of applicants did not buy a flat.
Hence, as it previously announced, the board is reviewing the system to discourage non-serious applicants from crowding out those with more pressing housing needs.
For example, 1,284 applications were received for the 698 flats offered under the Coral Spring project in Sengkang last September but more than 200 flats were left unsold after the exercise.
Sharp Drop In Q1 New Home Sales
Source : TODAY, Friday, April 18, 2008
But don't expect prices to fall, say analysts
IN another sign of a lull in the private residential property market, developers managed to sell only 795 new homes in the first three months of this year — a hefty 46 per cent decline from the fourth quarter of last year.
"This was the second lowest quarter of developer sales since the Sars-stricken quarter" in the first three months of 2003, said DTZ Research in the real estate consultancy's first-quarter Singapore Property Market Report released yesterday.
"Developers and buyers are taking a wait-and-see attitude and some are holding back launches," said DTZ in the report.
According to the Urban Redevelopment Authority (URA), developers launched 1,395 units in the first quarter this year, 291 fewer than the 1,686 in the previous quarter.
But even with the dwindling activity in the first quarter, most developers — especially the larger ones — are in no hurry to cut prices. "Developers were still able to put up with lacklustre sales, bolstered by the revenue surge during the past two years," noted DTZ.
The bigger and more established developers are likely to hold out until the market regains its firm footing — unless a darker cloud of prolonged gloom descends in the form of a deepening United States sub-prime mortgage crisis or regional uncertainties, said Mr Donald Han, managing director of real estate firm Cushman and Wakefield.
Currently, a generally optimistic outlook for Singapore's economy continues to prop up the property market. In fact, larger developers may even hold out for as long as two years until the Temporary Occupation Permits are obtained for their projects.
And even then, they may choose to rent out instead of selling the new apartments. Indeed, monthly rents of prime apartments have risen between 2.1 and 2.5 per cent quarter-on-quarter, noted the DTZ report.
However, some smaller developers subject to tighter bank credit, may yield to pressure to cut prices.
"Some developers may have taken out loans pegged to higher interest rates so they may price their property lower to clear stock," said Mr Han.
Earlier this month, estimates from the URA showed that the rise in home prices had been moderating, with prices up 4.2 per cent in the first three months, down from the 6.8 per cent growth in the previous quarter. Overall, there were only about 2,000 private residential transactions in January and February this year, down sharply from the 5,200 deals recorded over the same period last year.
The number of private home transactions has fallen in part due to the cooling of en bloc sales, which stood at a "standstill" in the first quarter, noted real estate firm Colliers International. There was just one collective deal — that of Ban Guan Park at Holland Road with a price tag of $31.1 million.
At the peak of en bloc fever in the second quarter of last year, there were 41 collective sales worth a total of about $6.5 billion, which supplied the market with potential buyers.
While the residential sector is cooling down, other segments of the property market such as office, industrial and retail are going strong. This has kept overall property investment sales at $8.4 billion in the first quarter this year, just 1 per cent above the previous quarter, according to the DTZ report.
But don't expect prices to fall, say analysts
IN another sign of a lull in the private residential property market, developers managed to sell only 795 new homes in the first three months of this year — a hefty 46 per cent decline from the fourth quarter of last year.
"This was the second lowest quarter of developer sales since the Sars-stricken quarter" in the first three months of 2003, said DTZ Research in the real estate consultancy's first-quarter Singapore Property Market Report released yesterday.
"Developers and buyers are taking a wait-and-see attitude and some are holding back launches," said DTZ in the report.According to the Urban Redevelopment Authority (URA), developers launched 1,395 units in the first quarter this year, 291 fewer than the 1,686 in the previous quarter.
But even with the dwindling activity in the first quarter, most developers — especially the larger ones — are in no hurry to cut prices. "Developers were still able to put up with lacklustre sales, bolstered by the revenue surge during the past two years," noted DTZ.
The bigger and more established developers are likely to hold out until the market regains its firm footing — unless a darker cloud of prolonged gloom descends in the form of a deepening United States sub-prime mortgage crisis or regional uncertainties, said Mr Donald Han, managing director of real estate firm Cushman and Wakefield.
Currently, a generally optimistic outlook for Singapore's economy continues to prop up the property market. In fact, larger developers may even hold out for as long as two years until the Temporary Occupation Permits are obtained for their projects.
And even then, they may choose to rent out instead of selling the new apartments. Indeed, monthly rents of prime apartments have risen between 2.1 and 2.5 per cent quarter-on-quarter, noted the DTZ report.
However, some smaller developers subject to tighter bank credit, may yield to pressure to cut prices.
"Some developers may have taken out loans pegged to higher interest rates so they may price their property lower to clear stock," said Mr Han.
Earlier this month, estimates from the URA showed that the rise in home prices had been moderating, with prices up 4.2 per cent in the first three months, down from the 6.8 per cent growth in the previous quarter. Overall, there were only about 2,000 private residential transactions in January and February this year, down sharply from the 5,200 deals recorded over the same period last year.
The number of private home transactions has fallen in part due to the cooling of en bloc sales, which stood at a "standstill" in the first quarter, noted real estate firm Colliers International. There was just one collective deal — that of Ban Guan Park at Holland Road with a price tag of $31.1 million.
At the peak of en bloc fever in the second quarter of last year, there were 41 collective sales worth a total of about $6.5 billion, which supplied the market with potential buyers.
While the residential sector is cooling down, other segments of the property market such as office, industrial and retail are going strong. This has kept overall property investment sales at $8.4 billion in the first quarter this year, just 1 per cent above the previous quarter, according to the DTZ report.
82 Months' Bonus
Source : The Electric New Paper, April 18, 2008
# KWEK LENG BENG, CITY DEVELOPMENTS
# LIEW MUN LEONG, CAPITALAND (59 months' bonus)
Are bonuses of $5m-plus excessive? Consultants say that is the norm overseas
GETTING a three-month bonus at the end of the year may be a satisfying reward for most people.
Now imagine getting 80 months' bonus. That means for that a year worked, you will get about seven years' worth of pay in terms of bonus.
Going by company annual reports, it looks like there were quite a few exceptional people who did that well last year.
Property bigwig Kwek Leng Beng, City Developments' executive chairman, earned a monthly salary of at least $77,500 last year.
But his bonus (including allowances) at year-end was at least $6.35 million - or 82 months of his monthly salary, according to the property group's 2007 annual report.
It's not hard to understand why, given that the group's full-year net profit more than doubled to a record $725m last year, according to a Straits Times report in February.
Mr Kwek made between $7.75m and $8m last year, according to that report.
Also doing very well was his counterpart, CapitaLand's chief executive, Mr Liew Mun Leong, who received a monthly salary of around $90,000 last year, according to the company's summary report.
His bonus was an equally impressive $5.3m - about 59 times his monthly salary and his total remuneration was about $6.5m.
Some industry watchers we spoke to were surprised by the figures.
One of them, Chesterton International's head of research and consultancy, Mr Colin Tan, noted that last year was a phenomenal year for the property market, with one of the biggest ever number of properties sold at record prices.
BT File Pictures
And when property companies do well, it's not unusual to hear of one-year bonuses, he said.
'But I've never heard of bonuses in terms of five, six years before,' he said.
It is not just these two property honchos' bonuses that have hit stratospheric levels. A look at the remuneration packages of other CEOs also threw up some huge numbers.
United Overseas Bank CEO Wee Ee Cheong earned between $6m and $6.25m for the 2007 financial year, according to the bank's annual report.
His monthly salary was at least $80,000 and his bonus was about $5m or 62 months' worth.
Singapore Exchange CEO Hsieh Fu Hua's monthly salary was about $62,000 for the last financial year, but his bonus of $4.5m is about 71 months of his salary, according to the SGX annual report.
These may be huge pay packages here, but human resource consultants we spoke to say it's the norm elsewhere.
Mr Fabrice Desmarescaux, a consultant with executive search firm Spencer Stuart, said the CEOs' remuneration structure and pay here is comparable to those in Europe and US, with an emphasis on a variable bonus.
Singapore Human Resource Institute executive director David Ang said that this multi-million dollar bonus is necessary to motivate this exceptional group of people to do well.
He said: 'Their bonus is based on some key performance indicators, such as the company's profitability, how they maximised capital for returns, how they contain costs and earnings per share.'
He said the CEO's service contract is usually proposed by the board of directors, remuneration committee or an independent consultancy.
DRAWBACKS, TOO
Having a high variable bonus can be a double-edged sword, said Mr Paul Heng, founder of Next Career Consulting.
He said: 'For the CEO, the risk of not getting that variable is there. If something happens, like the market crashes, it'll impact on his bonus.
'If it's a good year, of course, they'll get much more.'
For most employees, the basic salary is about 60 to 70 per cent of the annual package, with variable bonuses making up the rest.
And Mr Ang thinks bonuses should make up a bigger part of remuneration packages for all employees.
'This will drive up productivity and business efficiency. If the overall company targets are made clear, people who achieve the targets know that they'll get rewarded accordingly,' he said.
But, said Mr Heng: 'For the rank-and-file employees, the risks of high variable bonuses are that you may not get it at the year-end.'
--------------------------------------------------------------------------------
Other big earners
WEE EE CHEONG
Who he is: United Overseas Bank CEO
Monthly salary: At least $80,000
Bonus: About 62 months, or $5m It is really performance-based. If the basic salary is very high, the thinking is that they may not strive that hard for the company.
HSIEH FU HUA
Who he is: Singapore Exchange CEO
Monthly salary: About $62,000 for last financial year
Bonus: 71 months, or $4.5m
# KWEK LENG BENG, CITY DEVELOPMENTS
# LIEW MUN LEONG, CAPITALAND (59 months' bonus)
Are bonuses of $5m-plus excessive? Consultants say that is the norm overseas
GETTING a three-month bonus at the end of the year may be a satisfying reward for most people.
Now imagine getting 80 months' bonus. That means for that a year worked, you will get about seven years' worth of pay in terms of bonus.
Going by company annual reports, it looks like there were quite a few exceptional people who did that well last year.
Property bigwig Kwek Leng Beng, City Developments' executive chairman, earned a monthly salary of at least $77,500 last year.But his bonus (including allowances) at year-end was at least $6.35 million - or 82 months of his monthly salary, according to the property group's 2007 annual report.
It's not hard to understand why, given that the group's full-year net profit more than doubled to a record $725m last year, according to a Straits Times report in February.
Mr Kwek made between $7.75m and $8m last year, according to that report.
Also doing very well was his counterpart, CapitaLand's chief executive, Mr Liew Mun Leong, who received a monthly salary of around $90,000 last year, according to the company's summary report.His bonus was an equally impressive $5.3m - about 59 times his monthly salary and his total remuneration was about $6.5m.
Some industry watchers we spoke to were surprised by the figures.
One of them, Chesterton International's head of research and consultancy, Mr Colin Tan, noted that last year was a phenomenal year for the property market, with one of the biggest ever number of properties sold at record prices.
BT File Pictures
And when property companies do well, it's not unusual to hear of one-year bonuses, he said.
'But I've never heard of bonuses in terms of five, six years before,' he said.
It is not just these two property honchos' bonuses that have hit stratospheric levels. A look at the remuneration packages of other CEOs also threw up some huge numbers.
United Overseas Bank CEO Wee Ee Cheong earned between $6m and $6.25m for the 2007 financial year, according to the bank's annual report.
His monthly salary was at least $80,000 and his bonus was about $5m or 62 months' worth.
Singapore Exchange CEO Hsieh Fu Hua's monthly salary was about $62,000 for the last financial year, but his bonus of $4.5m is about 71 months of his salary, according to the SGX annual report.
These may be huge pay packages here, but human resource consultants we spoke to say it's the norm elsewhere.
Mr Fabrice Desmarescaux, a consultant with executive search firm Spencer Stuart, said the CEOs' remuneration structure and pay here is comparable to those in Europe and US, with an emphasis on a variable bonus.
Singapore Human Resource Institute executive director David Ang said that this multi-million dollar bonus is necessary to motivate this exceptional group of people to do well.
He said: 'Their bonus is based on some key performance indicators, such as the company's profitability, how they maximised capital for returns, how they contain costs and earnings per share.'
He said the CEO's service contract is usually proposed by the board of directors, remuneration committee or an independent consultancy.
DRAWBACKS, TOO
Having a high variable bonus can be a double-edged sword, said Mr Paul Heng, founder of Next Career Consulting.
He said: 'For the CEO, the risk of not getting that variable is there. If something happens, like the market crashes, it'll impact on his bonus.
'If it's a good year, of course, they'll get much more.'
For most employees, the basic salary is about 60 to 70 per cent of the annual package, with variable bonuses making up the rest.
And Mr Ang thinks bonuses should make up a bigger part of remuneration packages for all employees.
'This will drive up productivity and business efficiency. If the overall company targets are made clear, people who achieve the targets know that they'll get rewarded accordingly,' he said.
But, said Mr Heng: 'For the rank-and-file employees, the risks of high variable bonuses are that you may not get it at the year-end.'
--------------------------------------------------------------------------------
Other big earners
WEE EE CHEONG
Who he is: United Overseas Bank CEO
Monthly salary: At least $80,000
Bonus: About 62 months, or $5m It is really performance-based. If the basic salary is very high, the thinking is that they may not strive that hard for the company.
HSIEH FU HUA
Who he is: Singapore Exchange CEO
Monthly salary: About $62,000 for last financial year
Bonus: 71 months, or $4.5m
Banks Poaching Home Loan Customers With Sweet Offers
Source : My Paper, April 18, 2008
AS HOME sales continue to slide, banks are going all out to hang on to their existing home loan borrowers.
Some poach from their rivals while others are offering to pay off the penalties that customers may incur making the switch.
Flexibility has become a byword and new packages are getting more imaginative, The Business Times reported yesterday.
In anticipation of interest rates falling even further, one new DBS home loan package offers two free repricings within 24 months.
At United Overseas Bank, customers can fix the monthly payments for 36 months regardless of interest rate changes.
Standard Chartered Bank has begun repricing home loans downwards for existing customers on variable rate packages.
It is understood to be the first bank to do so given the steep falls in interest rates since last December.
The last time banks were proactive in repricing home loans was in 2005 after interest rates rose sharply in the third quarter of 2004. This, in turn, led to several rounds of hikes as the period followed two years of record lows when interest rates went below one per cent.
Stanchart's automatic repricing is for customers who are out of their lock-in periods - those who do not have to pay a penalty if they repay the loan in full.
"We proactively look at the customer base and take the necessary steps to ensure the pricing is competitive; if not, the competition will take them," saidMr Dennis Khoo, Stanchart general manager, lending.
The repricing can take the form of a new package or a lower rate within the existing contract, he said.
For banks looking to grow their mortgage business in a sluggish property market, refinancing or winning over customers from rivals is critical.
In the first quarter, only 795 new private homes were sold, about half the 1,469 units in the preceding quarter.
Repricing though can be a tricky business for borrowers still within their penalty periods because their banks have yet to recover their original costs of selling those loans.
So banks know that one way to poach customers from rivals is by offering to pay the penalty rate which can be hefty - typically 1-1.5 per cent of the outstanding loan.
"It's difficult because they were heavily subsidised in the first year... It depends on the total relationship as the bank may have to stomach the loss," said Mr Khoo.
Mr Koh Kar Siong, DBS managing director and head of secured loans, said clients who are considering refinancing need to assess the interest savings and the costs incurred such as legal fees and any penalties or subsidies payable to the financier.
But refinancing customers should remember that cheaper offers elsewhere still come with some cost, said Mr Gregory Chan, OCBC Bank head of consumer secured lending.
"Home-owners looking for refinancing should approach their existing banks first as the total cost of refinancing with another bank is usually relatively higher and has to be offset by lower interest rates," he said.
AS HOME sales continue to slide, banks are going all out to hang on to their existing home loan borrowers.
Some poach from their rivals while others are offering to pay off the penalties that customers may incur making the switch.
Flexibility has become a byword and new packages are getting more imaginative, The Business Times reported yesterday.In anticipation of interest rates falling even further, one new DBS home loan package offers two free repricings within 24 months.
At United Overseas Bank, customers can fix the monthly payments for 36 months regardless of interest rate changes.
Standard Chartered Bank has begun repricing home loans downwards for existing customers on variable rate packages.
It is understood to be the first bank to do so given the steep falls in interest rates since last December.
The last time banks were proactive in repricing home loans was in 2005 after interest rates rose sharply in the third quarter of 2004. This, in turn, led to several rounds of hikes as the period followed two years of record lows when interest rates went below one per cent.
Stanchart's automatic repricing is for customers who are out of their lock-in periods - those who do not have to pay a penalty if they repay the loan in full.
"We proactively look at the customer base and take the necessary steps to ensure the pricing is competitive; if not, the competition will take them," saidMr Dennis Khoo, Stanchart general manager, lending.
The repricing can take the form of a new package or a lower rate within the existing contract, he said.
For banks looking to grow their mortgage business in a sluggish property market, refinancing or winning over customers from rivals is critical.
In the first quarter, only 795 new private homes were sold, about half the 1,469 units in the preceding quarter.
Repricing though can be a tricky business for borrowers still within their penalty periods because their banks have yet to recover their original costs of selling those loans.
So banks know that one way to poach customers from rivals is by offering to pay the penalty rate which can be hefty - typically 1-1.5 per cent of the outstanding loan.
"It's difficult because they were heavily subsidised in the first year... It depends on the total relationship as the bank may have to stomach the loss," said Mr Khoo.
Mr Koh Kar Siong, DBS managing director and head of secured loans, said clients who are considering refinancing need to assess the interest savings and the costs incurred such as legal fees and any penalties or subsidies payable to the financier.
But refinancing customers should remember that cheaper offers elsewhere still come with some cost, said Mr Gregory Chan, OCBC Bank head of consumer secured lending.
"Home-owners looking for refinancing should approach their existing banks first as the total cost of refinancing with another bank is usually relatively higher and has to be offset by lower interest rates," he said.
Manhattan Home Prices Soar 41% To US$1.6m Despite Slowing Economy
Source : The Straits Times, Apr 18, 2008
NEW YORK - THE average price of Manhattan homes defied the slowing US economy and soared 41 per cent in a year, to US$1.6 million (S$2.16 million) in the first three months of 2008, an industry group said on Thursday.
Manhattan's surging real estate prices drove a citywide increase of 28 per cent, while prices in the boroughs Queens, Staten Island and the Bronx began to slip, according to a report by ResidentialNYC.com, a Web site managed by The Real Estate Board of New York.
'The report shows that Manhattan's luxury market for high-end properties continues to remain untouched by the slowing economy,' said board president Steven Spinola. 'Manhattan condominiums in particular continue to sell for record high prices.'
The study looked at prices in the first quarter of the year and compared them to the same period in 2007. In Manhattan, the average price for a home in the first quarter of last year was US$1.1 million.
In Brooklyn, prices rose an average of only 3 per cent, to US$582,000. Average prices in Queens and Staten Island were both down by 5 per cent, at US$458,000 and US$427,000 respectively. Average prices in the Bronx slipped by 1 per cent to US$396,000.
The report - using city data for recorded real estate transactions - tracks the sale of all residential property, including private houses that could be one to three-family dwellings, condominiums and cooperatives.
Strong sales in new luxury developments in these locations drove the increases, feeding what Mr Spinola called 'a pent-up demand' for housing in a city with limited space and a recent spate of construction. The falling dollar has also made New York real estate appealing to foreign investors.
The neighbourhoods with the highest average housing prices were in Soho and Tribeca, reflecting the areas' generally larger properties.
The Real Estate Board of New York is a trade association with 12,000 members. It represents property owners, builders, brokers, managers, banks and financial service companies. -- AP
NEW YORK - THE average price of Manhattan homes defied the slowing US economy and soared 41 per cent in a year, to US$1.6 million (S$2.16 million) in the first three months of 2008, an industry group said on Thursday.
Manhattan's surging real estate prices drove a citywide increase of 28 per cent, while prices in the boroughs Queens, Staten Island and the Bronx began to slip, according to a report by ResidentialNYC.com, a Web site managed by The Real Estate Board of New York.
'The report shows that Manhattan's luxury market for high-end properties continues to remain untouched by the slowing economy,' said board president Steven Spinola. 'Manhattan condominiums in particular continue to sell for record high prices.'
The study looked at prices in the first quarter of the year and compared them to the same period in 2007. In Manhattan, the average price for a home in the first quarter of last year was US$1.1 million.
In Brooklyn, prices rose an average of only 3 per cent, to US$582,000. Average prices in Queens and Staten Island were both down by 5 per cent, at US$458,000 and US$427,000 respectively. Average prices in the Bronx slipped by 1 per cent to US$396,000.
The report - using city data for recorded real estate transactions - tracks the sale of all residential property, including private houses that could be one to three-family dwellings, condominiums and cooperatives.
Strong sales in new luxury developments in these locations drove the increases, feeding what Mr Spinola called 'a pent-up demand' for housing in a city with limited space and a recent spate of construction. The falling dollar has also made New York real estate appealing to foreign investors.
The neighbourhoods with the highest average housing prices were in Soho and Tribeca, reflecting the areas' generally larger properties.
The Real Estate Board of New York is a trade association with 12,000 members. It represents property owners, builders, brokers, managers, banks and financial service companies. -- AP
Singdollar Hits New High Against Greenback
Source : The Straist Times, Apr 18, 2008
US$1 = S$1.3495
THE Singapore dollar rose to a record high, as Asian currencies advanced, spurring speculation that the Republic's central bank can allow gains to slow inflation without losing export competitiveness.
Singapore's currency, managed against an undisclosed basket of currencies of its major trading partners, was the second-best performer among the 10 most active Asian currencies outside Japan as the greenback fell.
Stocks in the region, including Singapore's, rose for a third day, as better-than-forecast profits at United States banks eased concerns that slowing global growth would dent earnings.
'The dollar's weakening against the majors forms a very supportive factor for Singapore's currency to strengthen against the US dollar,' said Bank of America currency strategist Yeo Han Sia.
'Risk appetite is gradually coming back, too, and with Asian currencies appreciating, it forces some gains in the Singapore dollar,' he added.
Singapore's currency rose to an all-time high of $1.3495 against the US dollar before slipping back to $1.3504 at 8pm. China's yuan rose to its highest against the US dollar since its July 2005 revaluation.
The Monetary Authority of Singapore last week moved to allow a one-off jump in the Singdollar's value to curb inflation. The currency has gained 2.2 per cent since April 9, the day before the move. -BLOOMBERG NEWS
US$1 = S$1.3495
THE Singapore dollar rose to a record high, as Asian currencies advanced, spurring speculation that the Republic's central bank can allow gains to slow inflation without losing export competitiveness.
Singapore's currency, managed against an undisclosed basket of currencies of its major trading partners, was the second-best performer among the 10 most active Asian currencies outside Japan as the greenback fell.
Stocks in the region, including Singapore's, rose for a third day, as better-than-forecast profits at United States banks eased concerns that slowing global growth would dent earnings.
'The dollar's weakening against the majors forms a very supportive factor for Singapore's currency to strengthen against the US dollar,' said Bank of America currency strategist Yeo Han Sia.
'Risk appetite is gradually coming back, too, and with Asian currencies appreciating, it forces some gains in the Singapore dollar,' he added.
Singapore's currency rose to an all-time high of $1.3495 against the US dollar before slipping back to $1.3504 at 8pm. China's yuan rose to its highest against the US dollar since its July 2005 revaluation.
The Monetary Authority of Singapore last week moved to allow a one-off jump in the Singdollar's value to curb inflation. The currency has gained 2.2 per cent since April 9, the day before the move. -BLOOMBERG NEWS
Pedra Branca Ruling Expected Next Month
Source : The Straits Times, Apr 18, 2008
THE International Court of Justice (ICJ) will likely issue its ruling on the dispute over Pedra Branca by the end of next month, Foreign Minister George Yeo said yesterday.
He was speaking to reporters after hosting a lunch for his Malaysian counterpart, Datuk Seri Rais Yatim, who was in Singapore on a one-day introductory visit.
MUTUAL UNDERSTANDING: Mr Yeo (right) and Datuk Seri Rais speaking to the media at the Ministry of Foreign Affairs. Mr Yeo said they had agreed that whatever the decision on Pedra Branca, both sides will accept it. -- ST PHOTO: FRANCIS ONG
'We also talked about Pedra Branca because it is likely that a judgment will be made in May; maybe mid-May or end of May,' Mr Yeo told reporters after the lunch.
Both Malaysia and Singapore have staked a claim to Pedra Branca, which the Malaysians call Pulau Batu Puteh, an island the size of a football field about 40km east of Singapore and home to Horsburgh Lighthouse.
Both sides agreed in 2003 to refer the dispute to the ICJ and made their representations before the United Nations body late last year.
Mr Yeo said: 'Both of us had agreed that if Malaysia were to win, then we will congratulate Malaysia. Foreign Minister Rais Yatim told me if Singapore were to win, he will congratulate Singapore and that whatever the decision, we will accept it and it will not affect bilateral relations.
'The lighthouse will continue to provide a valuable facility to all navigators so nothing should change, and this is the common position that we take and that we are proudly happy to declare to all Malaysians and Singaporeans.'
The two ministers also discussed forging closer bilateral relations and Asean integration during the lunch at the Ministry of Foreign Affairs.
Mr Yeo said Datuk Seri Rais had brought up the issue of linking up the urban railways of Singapore and Johor when he met Prime Minister Lee Hsien Loong earlier in the day.
'Prime Minister Lee responded positively to this idea of linking up the two urban rails,' said Mr Yeo.
'So this is for the Joint Ministerial Committee to take up, and the link should not be a difficult one and it will bring immediate advantages to both sides.'
The joint committee, which is looking into Johor's Iskandar Malaysia development region, was set up after PM Lee and Malaysian Prime Minister Abdullah Badawi had a retreat in Langkawi last year.
On Wednesday, the Iskandar-Malaysia Authority set up an office in Singapore, and Johor Menteri Besar Abdul Ghani Othman expressed hopes for an urban rail link.
In response to a question, the Malaysian Foreign Minister said he wanted relations with Singapore to be better than the status quo.
He said: 'It should be one grade up and we will do this as a fervour, as a push.'
Mr Yeo chipped in: 'I second that.'
Datuk Seri Rais replied: 'Thank you so much.'
Responding to another question, Datuk Seri Rais said, in Malay: 'If the relationship between Malaysia and Singapore is not at the highest level of harmony, then we cannot regard ourselves to be in one true Asean community.'
He added that Malaysia viewed Singapore, Brunei, Indonesia and Thailand as very important countries.
'Harmony is the key word, trusting each other, and what is committed through the rule of law, through international arrangement, we must respect. If we do not do that, then being neighbourly is not substantive enough,' he said.
Datuk Seri Rais also met Minister Mentor Lee Kuan Yew, Senior Minister Goh Chok Tong, and Deputy Prime Minister S. Jayakumar.
THE International Court of Justice (ICJ) will likely issue its ruling on the dispute over Pedra Branca by the end of next month, Foreign Minister George Yeo said yesterday.
He was speaking to reporters after hosting a lunch for his Malaysian counterpart, Datuk Seri Rais Yatim, who was in Singapore on a one-day introductory visit.
MUTUAL UNDERSTANDING: Mr Yeo (right) and Datuk Seri Rais speaking to the media at the Ministry of Foreign Affairs. Mr Yeo said they had agreed that whatever the decision on Pedra Branca, both sides will accept it. -- ST PHOTO: FRANCIS ONG'We also talked about Pedra Branca because it is likely that a judgment will be made in May; maybe mid-May or end of May,' Mr Yeo told reporters after the lunch.
Both Malaysia and Singapore have staked a claim to Pedra Branca, which the Malaysians call Pulau Batu Puteh, an island the size of a football field about 40km east of Singapore and home to Horsburgh Lighthouse.
Both sides agreed in 2003 to refer the dispute to the ICJ and made their representations before the United Nations body late last year.
Mr Yeo said: 'Both of us had agreed that if Malaysia were to win, then we will congratulate Malaysia. Foreign Minister Rais Yatim told me if Singapore were to win, he will congratulate Singapore and that whatever the decision, we will accept it and it will not affect bilateral relations.
'The lighthouse will continue to provide a valuable facility to all navigators so nothing should change, and this is the common position that we take and that we are proudly happy to declare to all Malaysians and Singaporeans.'
The two ministers also discussed forging closer bilateral relations and Asean integration during the lunch at the Ministry of Foreign Affairs.
Mr Yeo said Datuk Seri Rais had brought up the issue of linking up the urban railways of Singapore and Johor when he met Prime Minister Lee Hsien Loong earlier in the day.
'Prime Minister Lee responded positively to this idea of linking up the two urban rails,' said Mr Yeo.
'So this is for the Joint Ministerial Committee to take up, and the link should not be a difficult one and it will bring immediate advantages to both sides.'
The joint committee, which is looking into Johor's Iskandar Malaysia development region, was set up after PM Lee and Malaysian Prime Minister Abdullah Badawi had a retreat in Langkawi last year.
On Wednesday, the Iskandar-Malaysia Authority set up an office in Singapore, and Johor Menteri Besar Abdul Ghani Othman expressed hopes for an urban rail link.
In response to a question, the Malaysian Foreign Minister said he wanted relations with Singapore to be better than the status quo.
He said: 'It should be one grade up and we will do this as a fervour, as a push.'
Mr Yeo chipped in: 'I second that.'
Datuk Seri Rais replied: 'Thank you so much.'
Responding to another question, Datuk Seri Rais said, in Malay: 'If the relationship between Malaysia and Singapore is not at the highest level of harmony, then we cannot regard ourselves to be in one true Asean community.'
He added that Malaysia viewed Singapore, Brunei, Indonesia and Thailand as very important countries.
'Harmony is the key word, trusting each other, and what is committed through the rule of law, through international arrangement, we must respect. If we do not do that, then being neighbourly is not substantive enough,' he said.
Datuk Seri Rais also met Minister Mentor Lee Kuan Yew, Senior Minister Goh Chok Tong, and Deputy Prime Minister S. Jayakumar.
1 In 4 Employers Polled Expects Recession Soon
Source : The Straits Times, Apr 18, 2008
Health-care sector most gloomy but media, advertising sectors still upbeat
JUST over one in four employers polled recently expect Singapore to face a recession in the next six months, according to a survey by recruitment consultancy Hudson released yesterday.
The survey of 733 decision makers from multinationals was done in February, amid fears of a global slowdown due to troubles in the United States economy.
Especially pessimistic were health-care and life-sciences managers, with 55 per cent expecting a recession. Explaining, Mr Winston Poh, director of strategy and commercial operations at eye products company Bausch & Lomb, said investors are wary of funding new technologies that may be untested.
'Consumers may also avoid elective procedures such as Lasik surgery, because they can continue to use contact lenses or spectacles,' he said.
Among manufacturing firms polled, 38 per cent predicted a recession. But Mr Dennis Ng of the Singapore Manufacturers' Federation said although the sentiment among members was one of caution, most did not foresee a recession given the momentum of the construction boom and the economy's sound fundamentals.
Hudson's Singapore country manager Mark Sparrow said the 26 per cent expecting a recession was a 'smaller' than expected figure. 'We're experiencing people getting very nervous that a recession might come. So I was encouraged that only a quarter thought a recession would happen.'
He also thought 'the word recession might be overused, when what many mean is a slowing of the economy'.
Hudson also conducted parallel surveys among employers in the region. It found that 14 per cent of respondents in China expected a recession there, compared to 20 per cent in Hong Kong and 41 per cent in Japan.
But a recession was far from the minds of some here.
Most upbeat was the media, public relations and advertising sector, with 11 per cent expecting one. This was followed by the consumer sector at 20 per cent. Hudson put this down to large retail developments and events such as the 2010 Youth Olympics.
Some 79 per cent of those who predicted a recession said their industry would be affected.
But Mr Sparrow sees a silver lining: 'In previous downturns or crises like Sars, businesses were caught by surprise. Now that they see a slowing down, companies can have a Plan B.'
Managers polled said a recession would impact hiring and other policies: 90 per cent said they would freeze headcount, 33 per cent would freeze pay, and 19 per cent would cut staff.
But for this quarter, 49 per cent of employers polled still plan to hire more staff, compared to 56 per cent for the same period last year.
Health-care sector most gloomy but media, advertising sectors still upbeat
JUST over one in four employers polled recently expect Singapore to face a recession in the next six months, according to a survey by recruitment consultancy Hudson released yesterday.
The survey of 733 decision makers from multinationals was done in February, amid fears of a global slowdown due to troubles in the United States economy.
Especially pessimistic were health-care and life-sciences managers, with 55 per cent expecting a recession. Explaining, Mr Winston Poh, director of strategy and commercial operations at eye products company Bausch & Lomb, said investors are wary of funding new technologies that may be untested.
'Consumers may also avoid elective procedures such as Lasik surgery, because they can continue to use contact lenses or spectacles,' he said.
Among manufacturing firms polled, 38 per cent predicted a recession. But Mr Dennis Ng of the Singapore Manufacturers' Federation said although the sentiment among members was one of caution, most did not foresee a recession given the momentum of the construction boom and the economy's sound fundamentals.
Hudson's Singapore country manager Mark Sparrow said the 26 per cent expecting a recession was a 'smaller' than expected figure. 'We're experiencing people getting very nervous that a recession might come. So I was encouraged that only a quarter thought a recession would happen.'
He also thought 'the word recession might be overused, when what many mean is a slowing of the economy'.
Hudson also conducted parallel surveys among employers in the region. It found that 14 per cent of respondents in China expected a recession there, compared to 20 per cent in Hong Kong and 41 per cent in Japan.
But a recession was far from the minds of some here.
Most upbeat was the media, public relations and advertising sector, with 11 per cent expecting one. This was followed by the consumer sector at 20 per cent. Hudson put this down to large retail developments and events such as the 2010 Youth Olympics.
Some 79 per cent of those who predicted a recession said their industry would be affected.
But Mr Sparrow sees a silver lining: 'In previous downturns or crises like Sars, businesses were caught by surprise. Now that they see a slowing down, companies can have a Plan B.'
Managers polled said a recession would impact hiring and other policies: 90 per cent said they would freeze headcount, 33 per cent would freeze pay, and 19 per cent would cut staff.
But for this quarter, 49 per cent of employers polled still plan to hire more staff, compared to 56 per cent for the same period last year.
HDB Supply Of Completed New Flats Hits All-Time Low
Source : The Straits Times, Apr 18, 2008
THE Housing Board yesterday alerted couples looking to buy completed new flats that its supply had now dipped to an all-time low of 1,300.
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With the 'progressive clearance' of its unsold stock, there will be fewer completed units offered for sale in future, it said.
The HDB is now urging buyers to consider its build-to-order (BTO) flats where there will be 'ample supply and regular project launches'.
BTO flats will be the main source of new flats in future, the board has said. These flats are built only when there is sufficient demand, and usually take about three years to build.
The next two BTO sales will be launched at the end of the month, for flats in Punggol and Sengkang.
These new flats and others in towns such as Woodlands and Bukit Panjang will make up the 5,000 new flats the HDB plans to offer in the period until September.
The HDB's latest sale of completed flats, launched on April 10 - of 490 four-room or bigger flats in various towns such as Bukit Batok, Bukit Panjang, Choa Chu Kang and Jurong East - had received 5,700 applications by the time it closed on Wednesday.
The ratio of about 10 applicants for every flat offered under its bi-monthly sales programme is 'similar to other sale exercises conducted over the past year', said the board.
The take-up rate is high because flats offered have been completed or are nearing completion.
The HDB advised buyers to 'plan ahead for their housing needs' to minimise waiting.
It also acknowledged recent public feedback that applicants who are not serious buyers 'should be discouraged from participating in sales exercises, to avoid crowding out those with more pressing housing needs'.
In recent BTO launches, for example, Punggol Vista, Fernvale Vista (Phase Two) and Coral Spring in Sengkang had take-up rates of 72, 65 and 70 per cent respectively.
Many initial applicants did not go ahead and make a purchase despite the chance to do, perhaps because their desired units had been sold, or they had decided on other housing options.
The HDB said that it is reviewing the flat application system to address this concern.
Only flats at Telok Blangah Towers and Treelodge @ Punggol, HDB's environmentally friendly project, had high take-up rates of 100 and 94 per cent respectively, it told The Straits Times.
Recently, the board also revised its launches and will sell three-room and smaller unsold flats once every three months, instead of once a month. And the bigger flats - three-room premium and above - will be sold half-yearly starting Oct 10, instead of every two months.
JESSICA CHEAM
THE Housing Board yesterday alerted couples looking to buy completed new flats that its supply had now dipped to an all-time low of 1,300.
+Logo.jpg)
With the 'progressive clearance' of its unsold stock, there will be fewer completed units offered for sale in future, it said.The HDB is now urging buyers to consider its build-to-order (BTO) flats where there will be 'ample supply and regular project launches'.
BTO flats will be the main source of new flats in future, the board has said. These flats are built only when there is sufficient demand, and usually take about three years to build.
The next two BTO sales will be launched at the end of the month, for flats in Punggol and Sengkang.
These new flats and others in towns such as Woodlands and Bukit Panjang will make up the 5,000 new flats the HDB plans to offer in the period until September.
The HDB's latest sale of completed flats, launched on April 10 - of 490 four-room or bigger flats in various towns such as Bukit Batok, Bukit Panjang, Choa Chu Kang and Jurong East - had received 5,700 applications by the time it closed on Wednesday.
The ratio of about 10 applicants for every flat offered under its bi-monthly sales programme is 'similar to other sale exercises conducted over the past year', said the board.
The take-up rate is high because flats offered have been completed or are nearing completion.
The HDB advised buyers to 'plan ahead for their housing needs' to minimise waiting.
It also acknowledged recent public feedback that applicants who are not serious buyers 'should be discouraged from participating in sales exercises, to avoid crowding out those with more pressing housing needs'.
In recent BTO launches, for example, Punggol Vista, Fernvale Vista (Phase Two) and Coral Spring in Sengkang had take-up rates of 72, 65 and 70 per cent respectively.
Many initial applicants did not go ahead and make a purchase despite the chance to do, perhaps because their desired units had been sold, or they had decided on other housing options.
The HDB said that it is reviewing the flat application system to address this concern.
Only flats at Telok Blangah Towers and Treelodge @ Punggol, HDB's environmentally friendly project, had high take-up rates of 100 and 94 per cent respectively, it told The Straits Times.
Recently, the board also revised its launches and will sell three-room and smaller unsold flats once every three months, instead of once a month. And the bigger flats - three-room premium and above - will be sold half-yearly starting Oct 10, instead of every two months.
JESSICA CHEAM
US Recession Will Be Mild: G-8 Business Chiefs
Source : The Business Times, April 18, 2008
Europe, Japan also likely to escape severe damage to their economies
BUSINESS leaders from the G-8 countries meeting in Tokyo yesterday offered a reassuring assessment of the likely impact of the sub-prime crisis on the world's major economies.
They argued that the US would suffer only a 'mild recession' in the first half of 2008 before returning to growth later in the year and that Europe and Japan were also likely to escape without severe damage to their economies.
The business leaders from the US, Canada, Japan, Italy, France, Britain, Germany, Russia and the European Union nevertheless acknowledged in a communique after their meeting that 'the turmoil in international financial markets coupled with skyrocketing prices of crude oil and other commodities, as well as sudden and rapid movements in exchange rates entail downside risks'.
There will be a 'mild and short recession' in the US, predicted chairman of the US Business Roundtable Harold McGraw, who is also president and CEO of the McGraw-Hill companies.
The US housing recession is 'finally coming to an end', he said at a press briefing following the Tokyo meeting, which was designed to formulate strategy among G-8 business leaders in advance of this year's G-8 summit.
Considerable fiscal stimulus is already being applied to the US economy, Mr McGraw noted, and the monetary stimulus provided by aggressive interest rate cuts by the Federal Reserve should 'kick in' around the end of this year.
While US economic growth is likely to turn negative in the first two quarters of 2008, annualised growth rates in the second half should be strong enough to produce 1.1 per cent overall US growth for the year, he said.
Mr McGraw added that the G-8 group also expected growth of 1.7 per cent in Europe and 1.5 per cent in Japan for 2008, while robust growth in emerging economies should push global economic expansion this year up to 3.7 per cent overall.
But he also acknowledged the danger of a 'double dip' recession in the US if monetary stimulus fails to have the expected positive impact on consumption and investment.
A similarly optimistic message came from Jurgen Thumann, president of the German Federation of Industries, who argued that German and European business 'should be able to overcome' the impact of financial market turmoil without great damage to profitability and employment.
'We have not so far experienced any shortage of credits' despite huge losses among European as well as US banks as a result of the US sub-prime mortgage crisis, he said.
The US economy is 'diversified and resilient' and many areas have not been negatively impacted, argued Paul Speranza, chairman of the US Chamber of Commerce.
Any US recession resulting from the sub-prime crisis 'will not be long and it will not be deep', insisted Mr Speranza who noted that he was speaking on behalf some 'three million US businesses'.
The business leaders expressed optimism that industrial emission targets related to global warming, which will be a major subject at the G-8 summit which Japan is hosting in Hokkaido in July this year, will be achievable.
They also called on G-8 leaders to conclude an 'ambitious Doha Round' of international trade negotiations under the WTO in order to keep global growth on track.
Europe, Japan also likely to escape severe damage to their economies
BUSINESS leaders from the G-8 countries meeting in Tokyo yesterday offered a reassuring assessment of the likely impact of the sub-prime crisis on the world's major economies.
They argued that the US would suffer only a 'mild recession' in the first half of 2008 before returning to growth later in the year and that Europe and Japan were also likely to escape without severe damage to their economies.
The business leaders from the US, Canada, Japan, Italy, France, Britain, Germany, Russia and the European Union nevertheless acknowledged in a communique after their meeting that 'the turmoil in international financial markets coupled with skyrocketing prices of crude oil and other commodities, as well as sudden and rapid movements in exchange rates entail downside risks'.
There will be a 'mild and short recession' in the US, predicted chairman of the US Business Roundtable Harold McGraw, who is also president and CEO of the McGraw-Hill companies.
The US housing recession is 'finally coming to an end', he said at a press briefing following the Tokyo meeting, which was designed to formulate strategy among G-8 business leaders in advance of this year's G-8 summit.
Considerable fiscal stimulus is already being applied to the US economy, Mr McGraw noted, and the monetary stimulus provided by aggressive interest rate cuts by the Federal Reserve should 'kick in' around the end of this year.
While US economic growth is likely to turn negative in the first two quarters of 2008, annualised growth rates in the second half should be strong enough to produce 1.1 per cent overall US growth for the year, he said.
Mr McGraw added that the G-8 group also expected growth of 1.7 per cent in Europe and 1.5 per cent in Japan for 2008, while robust growth in emerging economies should push global economic expansion this year up to 3.7 per cent overall.
But he also acknowledged the danger of a 'double dip' recession in the US if monetary stimulus fails to have the expected positive impact on consumption and investment.
A similarly optimistic message came from Jurgen Thumann, president of the German Federation of Industries, who argued that German and European business 'should be able to overcome' the impact of financial market turmoil without great damage to profitability and employment.
'We have not so far experienced any shortage of credits' despite huge losses among European as well as US banks as a result of the US sub-prime mortgage crisis, he said.
The US economy is 'diversified and resilient' and many areas have not been negatively impacted, argued Paul Speranza, chairman of the US Chamber of Commerce.
Any US recession resulting from the sub-prime crisis 'will not be long and it will not be deep', insisted Mr Speranza who noted that he was speaking on behalf some 'three million US businesses'.
The business leaders expressed optimism that industrial emission targets related to global warming, which will be a major subject at the G-8 summit which Japan is hosting in Hokkaido in July this year, will be achievable.
They also called on G-8 leaders to conclude an 'ambitious Doha Round' of international trade negotiations under the WTO in order to keep global growth on track.
Many In S'pore Expect Pain If Recession Comes
Source : The Business Times, April 18, 2008
Banking sector most downbeat, IT appears resilient: Hudson report
If there is a recession, business here is more likely to be hit than that elsewhere in Asia. And workers here may feel the pain, too.
Not everyone in Singapore is anticipating a downturn. Only about a quarter (26 per cent) of 733 executives in key business sectors polled recently see a recession coming in the next six months, with those in the healthcare and life sciences business the most downbeat.
But overall, hiring expectations for the second quarter have dipped, with 49 per cent of the executives polled intending to increase headcount, down from 51 per cent in Q1 and 56 per cent a year ago.
Among executives expecting a recession, almost four out of five (79 per cent) expect business to be affected. This is more than in any other Asian country covered in the latest poll by Hudson, a leading recruiting executive recruitment firm in the region.
Analysts are not surprised at this, pointing to the fact that the Singapore economy is more open - and thus more vulnerable than others to a global recession.
In the banking and financial services sector, more than 9 out of 10 of the pessimists share the belief that business would be hit because, Hudson says, banks are likely to be the first to feel the pain of a downturn in the global financial industry.
Executives in the information-technology and telecommunications sector are the most resilient, with just under two-thirds (64 per cent) indicating they think a recession would hit business - the lowest figure among all sectors.
'Companies expect that major IT projects in the financial and public sectors will provide continuing growth opportunities,' Hudson says in its report on hiring and human resource trends.
Across all sectors, 58 per cent of the executives polled here said a recession would affect their hiring plans - a figure higher than for in any other Asian country surveyed by Hudson.
'There is a high degree of consistency between the sectors,' Hudson says. 'The banking and financial services sector has the highest number of respondents saying their hiring plans would be affected, at 65 per cent, and the IT&T sector the lowest, at 53 per cent.'
A freeze in headcount is most likely in the event of a recession, with 9 out of 10 of the executives polled saying they would take this measure. Only a low 19 per cent of those polled would reach for the axe to chop workers.
A third of the executives indicated they would resort to a pay freeze if there is a downturn, making this the second most popular measure. Companies in the media, public relations advertising (50 per cent) and IT&T (44 per cent) are the most likely to make this move.
'These sectors are also the least likely to cut staff,' Hudson notes. 'Both industries are still busy and would rather freeze salaries than cut staff, to ensure they have adequate resources for ongoing projects.'
Hudson's latest poll shows hiring expectations have fallen in every sector except the media, public relations and advertisement.
'Among the media/ PR/advertising firms, hiring expectations have grown over the past year,' Hudson says. 'In Q2 2007, 48 per cent of respondents expected to expand recruitment, compared with 52 per cent this quarter. Much of this demand is driven by the growth of online advertising and digital media.'
Which is perhaps why the media/PR/advertising sector is the least pessimistic about a recession, with only 11 per cent of its executives polled predicting a recession in the next six months.
Banking sector most downbeat, IT appears resilient: Hudson report
If there is a recession, business here is more likely to be hit than that elsewhere in Asia. And workers here may feel the pain, too.
Not everyone in Singapore is anticipating a downturn. Only about a quarter (26 per cent) of 733 executives in key business sectors polled recently see a recession coming in the next six months, with those in the healthcare and life sciences business the most downbeat.
But overall, hiring expectations for the second quarter have dipped, with 49 per cent of the executives polled intending to increase headcount, down from 51 per cent in Q1 and 56 per cent a year ago.
Among executives expecting a recession, almost four out of five (79 per cent) expect business to be affected. This is more than in any other Asian country covered in the latest poll by Hudson, a leading recruiting executive recruitment firm in the region.
Analysts are not surprised at this, pointing to the fact that the Singapore economy is more open - and thus more vulnerable than others to a global recession.
In the banking and financial services sector, more than 9 out of 10 of the pessimists share the belief that business would be hit because, Hudson says, banks are likely to be the first to feel the pain of a downturn in the global financial industry.
Executives in the information-technology and telecommunications sector are the most resilient, with just under two-thirds (64 per cent) indicating they think a recession would hit business - the lowest figure among all sectors.
'Companies expect that major IT projects in the financial and public sectors will provide continuing growth opportunities,' Hudson says in its report on hiring and human resource trends.
Across all sectors, 58 per cent of the executives polled here said a recession would affect their hiring plans - a figure higher than for in any other Asian country surveyed by Hudson.
'There is a high degree of consistency between the sectors,' Hudson says. 'The banking and financial services sector has the highest number of respondents saying their hiring plans would be affected, at 65 per cent, and the IT&T sector the lowest, at 53 per cent.'
A freeze in headcount is most likely in the event of a recession, with 9 out of 10 of the executives polled saying they would take this measure. Only a low 19 per cent of those polled would reach for the axe to chop workers.
A third of the executives indicated they would resort to a pay freeze if there is a downturn, making this the second most popular measure. Companies in the media, public relations advertising (50 per cent) and IT&T (44 per cent) are the most likely to make this move.
'These sectors are also the least likely to cut staff,' Hudson notes. 'Both industries are still busy and would rather freeze salaries than cut staff, to ensure they have adequate resources for ongoing projects.'
Hudson's latest poll shows hiring expectations have fallen in every sector except the media, public relations and advertisement.
'Among the media/ PR/advertising firms, hiring expectations have grown over the past year,' Hudson says. 'In Q2 2007, 48 per cent of respondents expected to expand recruitment, compared with 52 per cent this quarter. Much of this demand is driven by the growth of online advertising and digital media.'
Which is perhaps why the media/PR/advertising sector is the least pessimistic about a recession, with only 11 per cent of its executives polled predicting a recession in the next six months.
Different Strokes For Different Segments If Developers Cut Prices
Source : The Business Times, April 18, 2008
In cutting prices by 3-5 per cent at three existing projects and achieving encouraging sales, property giant Far East Organization may have set the cat among the pigeons.
Other developers must now ask themselves whether to embrace this strategy. Of course, the bigger ones have the financial muscle to hold back launches and sales for months and don't need to chop prices to entice buyers in the face of weaker market sentiment.
But there are opportunity costs involved in letting projects linger on the market and in holding on to sites - especially ones with a 99-year leasehold - instead of launching the project.
Of course, cutting prices is never easy from a developer's standpoint. To what extent can developers cut prices without further eroding confidence in the market? And how much of a price cut is necessary to lure buyers?
The margins also dictate the extent to which developers can afford to cut prices on a particular project - and factors to consider include the price at which they bought the land and whether they have locked in construction costs.
But apart from the broad parameters, there are more specific considerations that can sway a developer's decision.
In the current market, for example, it makes more sense to trim prices of mass market projects (anything priced at $1,000 psf and below) as buyers are more likely to be owner-occupiers than speculators and investors. And because these buyers are more price sensitive, even a modest price-cut of up to 5 per cent - like what Far East did - can help speed up the buying decision.
For mid-tier projects (priced at $1,000 to $2,000 psf), the speculators and investors feature more prominently in the pool of buyers. Any price cut in this segment would have to be more significant - say about 10 per cent - to draw buyers.
For high-end developments ($2,000 psf and above), buyers tend to be foreigners, investors and speculators. 'I don't think it's so much a case of price sensitivity in this sector,' says Knight Frank executive director (residential) Peter Ow. 'Even if you cut prices, buyers may not come in. These are people whose decisions will be affected by the volatility in global financial markets.'
Another point to note is that because high-end prices have gone up so much in the past couple of years, the level of perceived risk for someone buying an investment property in this market segment is much higher today.
DTZ executive director (research and consultancy) Ong Choon Fah makes another point: 'These investors are mobile with their funds - and may be looking at other global cities like London and New York, where opportunities have emerged as prices have fallen.'
A seasoned investor told BT that prices in the high-end segment may have to be cut at least 20 per cent before risks drop sufficiently to attract potential investors. For that reason, developers of upmarket properties will also resist making price cuts of this quantum. But then, another group of people may hold the key to price chops in this segment: specuvestors.
Those who bought multiple units in high-end projects a few years earlier on deferred payment schemes may be willing to let go of their units at below current market prices before the projects receive Temporary Occupation Permit, which is when they'll have to pay the bulk of their purchase price to the developer.
If sufficient numbers of these units are transacted in the secondary market at prices below current values, it would set lower price benchmarks for the surrounding areas. And that would increase pressure on developers to lower their prices.
A major consideration for lowering prices is appeasing those who bought earlier at higher prices. In the past, developers have done this by offering furnishing vouchers to their early buyers. Another tactic has been to cut prices discreetly. 'Within any project, there may be price variations of up to 20 per cent depending on height and facing of units. Developers may be able to trim prices by up to 10 per cent without making it so obvious,' says Mr Ow.
Against this, the high construction costs may reduce a developer's ability to manoeuvre and cut prices - especially if the site was bought at a steep price.
Still, the months ahead may prove fruitful for bargain hunters.
In cutting prices by 3-5 per cent at three existing projects and achieving encouraging sales, property giant Far East Organization may have set the cat among the pigeons.
Other developers must now ask themselves whether to embrace this strategy. Of course, the bigger ones have the financial muscle to hold back launches and sales for months and don't need to chop prices to entice buyers in the face of weaker market sentiment.
But there are opportunity costs involved in letting projects linger on the market and in holding on to sites - especially ones with a 99-year leasehold - instead of launching the project.
Of course, cutting prices is never easy from a developer's standpoint. To what extent can developers cut prices without further eroding confidence in the market? And how much of a price cut is necessary to lure buyers?
The margins also dictate the extent to which developers can afford to cut prices on a particular project - and factors to consider include the price at which they bought the land and whether they have locked in construction costs.
But apart from the broad parameters, there are more specific considerations that can sway a developer's decision.
In the current market, for example, it makes more sense to trim prices of mass market projects (anything priced at $1,000 psf and below) as buyers are more likely to be owner-occupiers than speculators and investors. And because these buyers are more price sensitive, even a modest price-cut of up to 5 per cent - like what Far East did - can help speed up the buying decision.
For mid-tier projects (priced at $1,000 to $2,000 psf), the speculators and investors feature more prominently in the pool of buyers. Any price cut in this segment would have to be more significant - say about 10 per cent - to draw buyers.
For high-end developments ($2,000 psf and above), buyers tend to be foreigners, investors and speculators. 'I don't think it's so much a case of price sensitivity in this sector,' says Knight Frank executive director (residential) Peter Ow. 'Even if you cut prices, buyers may not come in. These are people whose decisions will be affected by the volatility in global financial markets.'
Another point to note is that because high-end prices have gone up so much in the past couple of years, the level of perceived risk for someone buying an investment property in this market segment is much higher today.
DTZ executive director (research and consultancy) Ong Choon Fah makes another point: 'These investors are mobile with their funds - and may be looking at other global cities like London and New York, where opportunities have emerged as prices have fallen.'
A seasoned investor told BT that prices in the high-end segment may have to be cut at least 20 per cent before risks drop sufficiently to attract potential investors. For that reason, developers of upmarket properties will also resist making price cuts of this quantum. But then, another group of people may hold the key to price chops in this segment: specuvestors.
Those who bought multiple units in high-end projects a few years earlier on deferred payment schemes may be willing to let go of their units at below current market prices before the projects receive Temporary Occupation Permit, which is when they'll have to pay the bulk of their purchase price to the developer.
If sufficient numbers of these units are transacted in the secondary market at prices below current values, it would set lower price benchmarks for the surrounding areas. And that would increase pressure on developers to lower their prices.
A major consideration for lowering prices is appeasing those who bought earlier at higher prices. In the past, developers have done this by offering furnishing vouchers to their early buyers. Another tactic has been to cut prices discreetly. 'Within any project, there may be price variations of up to 20 per cent depending on height and facing of units. Developers may be able to trim prices by up to 10 per cent without making it so obvious,' says Mr Ow.
Against this, the high construction costs may reduce a developer's ability to manoeuvre and cut prices - especially if the site was bought at a steep price.
Still, the months ahead may prove fruitful for bargain hunters.
Investment Property Sales In Q1 Remain Steady
Source : The Business Times, April 18, 2008
INVESTMENT property sales level in first quarter 2008 was unchanged from a year ago despite deepening concerns regarding the US economy.
A total of $8.4 billion worth of transactions was concluded, up one per cent quarter-on-quarter (QOQ), according to the Q1, 2008 Singapore Property Market Report by Debenham Tie Leung (DTZ).
The office sector was the best performer with $3.4 billion in sales, reflecting a significant 134 per cent increase QOQ.
Government state land saw strong response from developers to several sites released for tenders. The transactions showed that developers were willing to pay for sites in good locations, despite the cautious market, DTZ said.
Investments in industrial properties rose 31 per cent QOQ to $690.5 million, mainly in en-bloc deals purchased by real estate investment trusts.
However, residential sales fell 45 per cent QOQ to $2.2 billion. DTZ attributed the slowdown in sales activity to weak market sentiments, adding that developers and buyers are adopting a wait-and-see attitude.
Preliminary figures showed that only about 2,000 private residential transactions were recorded through caveats in the first two months of 2008, down from 5,200 a year ago.
Developer sales in Q1 reflected a 46 per cent QOQ decline, falling to 795. This was the second lowest quarter of developer sales since the Sars-stricken quarter of Q1, 2003.
Said DTZ's senior director for investment advisory services and auction, Shaun Poh, 'With current record high prices, investments by opportunistic investors with short-term approaches are likely to decline. More long-term investors have entered the market and are looking at core assets in good locations.'
The rental market remained stable, with consumer spending remaining stable amid a high employment rate. Retail sales for January 2008 rose 15.5 per cent year-on-year (YOY).
Removing the price effect, retail sales rose 1.5 per cent YOY. DTZ said occupancy of retail space is expected to remain high, at above 90 per cent.
'The outlook for retail rents remains positive on a selective basis. Rents in well-positioned malls are expected to continue to increase, particularly for prime units in Orchard Road,' said Anna Lee, DTZ's retail associate director.
INVESTMENT property sales level in first quarter 2008 was unchanged from a year ago despite deepening concerns regarding the US economy.
A total of $8.4 billion worth of transactions was concluded, up one per cent quarter-on-quarter (QOQ), according to the Q1, 2008 Singapore Property Market Report by Debenham Tie Leung (DTZ).
The office sector was the best performer with $3.4 billion in sales, reflecting a significant 134 per cent increase QOQ.
Government state land saw strong response from developers to several sites released for tenders. The transactions showed that developers were willing to pay for sites in good locations, despite the cautious market, DTZ said.
Investments in industrial properties rose 31 per cent QOQ to $690.5 million, mainly in en-bloc deals purchased by real estate investment trusts.
However, residential sales fell 45 per cent QOQ to $2.2 billion. DTZ attributed the slowdown in sales activity to weak market sentiments, adding that developers and buyers are adopting a wait-and-see attitude.
Preliminary figures showed that only about 2,000 private residential transactions were recorded through caveats in the first two months of 2008, down from 5,200 a year ago.
Developer sales in Q1 reflected a 46 per cent QOQ decline, falling to 795. This was the second lowest quarter of developer sales since the Sars-stricken quarter of Q1, 2003.
Said DTZ's senior director for investment advisory services and auction, Shaun Poh, 'With current record high prices, investments by opportunistic investors with short-term approaches are likely to decline. More long-term investors have entered the market and are looking at core assets in good locations.'
The rental market remained stable, with consumer spending remaining stable amid a high employment rate. Retail sales for January 2008 rose 15.5 per cent year-on-year (YOY).
Removing the price effect, retail sales rose 1.5 per cent YOY. DTZ said occupancy of retail space is expected to remain high, at above 90 per cent.
'The outlook for retail rents remains positive on a selective basis. Rents in well-positioned malls are expected to continue to increase, particularly for prime units in Orchard Road,' said Anna Lee, DTZ's retail associate director.
KSH Holdings Clinches S$126.8m Deal To Build Condo At Sentosa Cove
Source : Channel NewsAsia, 17 April 2008
Construction and property developer KSH Holdings has secured a S$126.8 million contract to build a condominium development at Singapore's Sentosa Cove.
The contract is the first of its kind to be awarded by Lippo Marina Collection for the construction of a luxury housing development at the site.
This will be the group's fifth high-end luxury residential property project at Sentosa cove. The deal will bring KSH holdings order book to S$770 million.
In the last four months, project contracts for the developer have added up to some S$354.4 million, in comparison to a total of S$510 million for 2007.
Work on the site is to begin this month and the project is expected to be completed by December 2010. - CNA /ls
Construction and property developer KSH Holdings has secured a S$126.8 million contract to build a condominium development at Singapore's Sentosa Cove.
The contract is the first of its kind to be awarded by Lippo Marina Collection for the construction of a luxury housing development at the site. This will be the group's fifth high-end luxury residential property project at Sentosa cove. The deal will bring KSH holdings order book to S$770 million.
In the last four months, project contracts for the developer have added up to some S$354.4 million, in comparison to a total of S$510 million for 2007.
Work on the site is to begin this month and the project is expected to be completed by December 2010. - CNA /ls
OCBC Bank Does Not Expect Further CDO Impairments
Source : Channel NewsAsia, 17 April 2008
OCBC Bank said it does not expect further impairments on its exposure to collaterised debt obligations (CDOs).
Chief Executive David Connor made that comment at the bank's annual general meeting on Thursday.
So far, 85 percent of the bank's CDOs have been marked-to-market, with provisions made for. OCBC said it does not expect any impairment losses from the remaining 15 percent.
Concerns were raised over whether the lender might suffer a greater impact from the fallout from the US housing credit crisis in the coming months. But OCBC said the majority of its asset-backed CDOs are already yielding returns, and it expects half of them to mature in the next two years.
OCBC's aggressive expansion in Indonesia last year also came under the spotlight. Shareholders raised concerns over what they called "fairly substantial allowances" made by OCBC in 2007, and asked if the aggressive expansion would continue.
"What we were told by the chief executive is that they'll probably slow down a little bit in 2008, and consolidate. (This) is good news because Indonesia is a good market but they should perhaps step back a little," said Philip Smith, an OCBC Bank shareholder.
OCBC said profits in its investment in Indonesia's Bank NISP have increased dramatically. It expects each of its branches in Indonesia to break-even within two years.
OCBC also announced the retirement of two of its directors, Michael Wong and Tan Sri Dato Nasruddin, at the AGM. - CNA /ls
OCBC Bank said it does not expect further impairments on its exposure to collaterised debt obligations (CDOs).
Chief Executive David Connor made that comment at the bank's annual general meeting on Thursday.
So far, 85 percent of the bank's CDOs have been marked-to-market, with provisions made for. OCBC said it does not expect any impairment losses from the remaining 15 percent. Concerns were raised over whether the lender might suffer a greater impact from the fallout from the US housing credit crisis in the coming months. But OCBC said the majority of its asset-backed CDOs are already yielding returns, and it expects half of them to mature in the next two years.
OCBC's aggressive expansion in Indonesia last year also came under the spotlight. Shareholders raised concerns over what they called "fairly substantial allowances" made by OCBC in 2007, and asked if the aggressive expansion would continue.
"What we were told by the chief executive is that they'll probably slow down a little bit in 2008, and consolidate. (This) is good news because Indonesia is a good market but they should perhaps step back a little," said Philip Smith, an OCBC Bank shareholder.
OCBC said profits in its investment in Indonesia's Bank NISP have increased dramatically. It expects each of its branches in Indonesia to break-even within two years.
OCBC also announced the retirement of two of its directors, Michael Wong and Tan Sri Dato Nasruddin, at the AGM. - CNA /ls
Property Sales Total S$8.4b In Q1, Up 1% Quarter-On-Quarter
Source : Channel NewsAsia, 17 April 2008
Investment sales level in the Singapore property market in the first quarter of 2008 was similar to that in the fourth quarter of 2007 despite deepening concerns regarding the US economy.
Singapore Power Building
A report by DTZ Debenham Tie Leung said a total of S$8.4 billion worth of transactions was concluded, a slight increase of one per cent quarter-on-quarter.
The office sector was the best performer with S$3.4 billion in sales, up 134 per cent against the previous quarter.
The office sector was supported by en bloc transactions which saw several major buildings, like One George Street, Hitachi Tower, Singapore Power Building and One Philip Street, being transacted.
The industrial sector also saw increasing interest. Investments in industrial properties rose 31 per cent quarter-on-quarter to S$690.5 million, mainly in en bloc deals purchased by REITs.
However, residential sales fell to S$2.2 billion, down 45 per cent from the last quarter.
DTZ said sales activity in the private residential market slowed significantly in the first quarter due to weakened market sentiments. It added that developers and buyers were taking a wait-and-see attitude.
Preliminary figures showed there were only about 2,000 private residential transactions recorded through caveats in the first two months of 2008.
According to DTZ, there were only 795 developer sales in the first quarter of this year, reflecting a 46 per cent quarter-on-quarter decline. This was the second lowest quarter of developer sales since the SARS-stricken period, which was the first quarter of 2003.
DTZ added that rents have increased marginally due to tight supply. Monthly rents of prime condominiums increased 2.1 per cent quarter-on-quarter to average S$4.90 per square foot.
For non-prime districts, monthly rents of condominiums increased by an average of 2.5 per cent quarter-on-quarter to S$2.10 per square foot.
DTZ said rental increases of private residential properties are likely to moderate due to budget constraints and the slower influx of expatriates. - CNA/vm
Investment sales level in the Singapore property market in the first quarter of 2008 was similar to that in the fourth quarter of 2007 despite deepening concerns regarding the US economy.
Singapore Power BuildingA report by DTZ Debenham Tie Leung said a total of S$8.4 billion worth of transactions was concluded, a slight increase of one per cent quarter-on-quarter.
The office sector was the best performer with S$3.4 billion in sales, up 134 per cent against the previous quarter.
The office sector was supported by en bloc transactions which saw several major buildings, like One George Street, Hitachi Tower, Singapore Power Building and One Philip Street, being transacted.
The industrial sector also saw increasing interest. Investments in industrial properties rose 31 per cent quarter-on-quarter to S$690.5 million, mainly in en bloc deals purchased by REITs.
However, residential sales fell to S$2.2 billion, down 45 per cent from the last quarter.
DTZ said sales activity in the private residential market slowed significantly in the first quarter due to weakened market sentiments. It added that developers and buyers were taking a wait-and-see attitude.
Preliminary figures showed there were only about 2,000 private residential transactions recorded through caveats in the first two months of 2008.
According to DTZ, there were only 795 developer sales in the first quarter of this year, reflecting a 46 per cent quarter-on-quarter decline. This was the second lowest quarter of developer sales since the SARS-stricken period, which was the first quarter of 2003.
DTZ added that rents have increased marginally due to tight supply. Monthly rents of prime condominiums increased 2.1 per cent quarter-on-quarter to average S$4.90 per square foot.
For non-prime districts, monthly rents of condominiums increased by an average of 2.5 per cent quarter-on-quarter to S$2.10 per square foot.
DTZ said rental increases of private residential properties are likely to moderate due to budget constraints and the slower influx of expatriates. - CNA/vm
HDB Gets 5,700 Applications For 490 Flats In April Sale
Source : Channel NewsAsia, 17 April 2008
The Housing and Development Board's (HDB) April sale of four-room and bigger flats closed on Wednesday, with 5,700 applications for the 490 flats offered.
These flats are located in various towns such as Bukit Batok, Bukit Panjang, Choa Chu Kang, Jurong East, Jurong West, Sembawang, Woodlands and Yishun.
HDB said the take-up rates for its Bi-monthly Sales Exercise are high because the flats offered are completed or nearing completion.
However, it noted that while there is a high number of applications for its unsold stock, a significant number of applicants under the Built-To-Order (BTO) scheme does not end up purchasing a flat.
For instance, there were 1,284 applications received for 698 4-room flats offered under the September 2007 BTO project at Coral Spring in Sengkang. However, more than 200 flats remained unsold after all the applicants in this project were invited to select a unit.
So HDB is currently reviewing the flat application system, following feedback that non-serious applicants are crowding out those with more pressing housing needs.
HDB flats are now mainly sold through the BTO system, where projects are built only when a majority of units are booked. As these BTO flats take about three years to be complete, buyers are advised to plan ahead for their housing needs.
Couples who are planning to get married are encouraged to take advantage of HDB’s Fiance-fiancée Scheme to book their BTO flats early, to reduce the waiting time for a new flat upon marriage.
From April to September, HDB plans to offer 5,000 new BTO flats in towns such as Punggol, Sengkang, Woodlands and Bukit Panjang. The next two BTO launches will be in Punggol and Sengkang at the end of April.
HDB has also advised urgent buyers to consider resale flats in the open market where eligible first-time buyers can apply for the S$30,000 CPF Housing Grant.
First-timers who buy a resale flat to stay with or near their parents are also entitled to a higher grant of S$40,000. - CNA/vm
The Housing and Development Board's (HDB) April sale of four-room and bigger flats closed on Wednesday, with 5,700 applications for the 490 flats offered.
These flats are located in various towns such as Bukit Batok, Bukit Panjang, Choa Chu Kang, Jurong East, Jurong West, Sembawang, Woodlands and Yishun.
HDB said the take-up rates for its Bi-monthly Sales Exercise are high because the flats offered are completed or nearing completion. However, it noted that while there is a high number of applications for its unsold stock, a significant number of applicants under the Built-To-Order (BTO) scheme does not end up purchasing a flat.
For instance, there were 1,284 applications received for 698 4-room flats offered under the September 2007 BTO project at Coral Spring in Sengkang. However, more than 200 flats remained unsold after all the applicants in this project were invited to select a unit.
So HDB is currently reviewing the flat application system, following feedback that non-serious applicants are crowding out those with more pressing housing needs.
HDB flats are now mainly sold through the BTO system, where projects are built only when a majority of units are booked. As these BTO flats take about three years to be complete, buyers are advised to plan ahead for their housing needs.
Couples who are planning to get married are encouraged to take advantage of HDB’s Fiance-fiancée Scheme to book their BTO flats early, to reduce the waiting time for a new flat upon marriage.
From April to September, HDB plans to offer 5,000 new BTO flats in towns such as Punggol, Sengkang, Woodlands and Bukit Panjang. The next two BTO launches will be in Punggol and Sengkang at the end of April.
HDB has also advised urgent buyers to consider resale flats in the open market where eligible first-time buyers can apply for the S$30,000 CPF Housing Grant.
First-timers who buy a resale flat to stay with or near their parents are also entitled to a higher grant of S$40,000. - CNA/vm
Sino-Singapore Tianjin Eco-City To Be Ready In 10 To 15 Years
Source : Channel NewsAsia, 17 April 2008
The mega eco-city project in Tianjin, which is jointly planned by China and Singapore, will be completed in 10 to 15 years.
But a glimpse of the whole city can be seen in as early as three years when a start-up area is completed, according to National Development Minister Mah Bow Tan, who is leading the Singapore team in the project.
Artist's impression of Sino-Singapore Tianjin eco-city
This urban development will not take place at the expense of the environment as buildings in the Sino-Singapore Tianjin eco-city will be energy efficient.
Ninety percent of its over 300,000 residents will also be making 'green trips' by walking, cycling or using public transport to reduce carbon emissions.
Related Video - http://tinyurl.com/569tkr
Moreover, green technologies will be adopted to ensure effective and efficient recycling of refuse, sewage and wastewater.
The eco-city is located just 40 kilometres from Tianjin city and 150 kilometres from Beijing.
Mr Mah said Singapore hopes to incorporate some of its experience in environment-friendly practices to the eco-city. At the same time, Singapore wants to glean some lessons from the joint project.
The minister said: "Some of the ideas are derived from what we are already doing here. For example, we are specifying that all the buildings in the eco-city will be 'Green Marked'. We will take some of the Green Mark (certified) buildings, adapt it to the rules in China and implement a Green Mark in China.
"But in the process of doing it, I'm sure we will adapt and improve, and marry the best practices from both sides. I would expect that we will take the improved version and bring it back to Singapore. That's why I say that it's an interactive process - we are learning from each other."
Mr Mah said successful features in the eco-city will be implemented in new developments such as those in Jurong.
The eco-city will be built based on a concept very much like Singapore's town centres, so the new city will have educational institutions, medical centres, commercial and residential areas within walking distances.
A total of 20 percent of its residential area will also be allocated for public housing.
Singapore plans to share its expertise in wastewater management, urban planning and transportation as well.
"At the end of the day, there will be a clear Singapore imprint in this... it will reflect a lot of the experiences we have gathered in Singapore over many, many years," said Mr Mah.
The first development, which is expected to be ready in three years' time, is an area that covers over three square kilometres in the south of the eco-city. Facilities in this area include a business park and a university.
The masterplan for the eco-city will be released for public consultation in Tianjin sometime next week. But before that, work has already started on detailed plans for the start-up area.
When completed, the eco-city is expected to be a model for other cities in China, as well as other parts of the world.
It is the second joint project by the Singapore and Chinese governments after the Suzhou Industrial Park.
The Chinese government has identified the project as the third most important development in China after the Pearl River Delta and the Yangtze River Delta projects. - CNA/so
The mega eco-city project in Tianjin, which is jointly planned by China and Singapore, will be completed in 10 to 15 years.
But a glimpse of the whole city can be seen in as early as three years when a start-up area is completed, according to National Development Minister Mah Bow Tan, who is leading the Singapore team in the project.
Artist's impression of Sino-Singapore Tianjin eco-cityThis urban development will not take place at the expense of the environment as buildings in the Sino-Singapore Tianjin eco-city will be energy efficient.
Ninety percent of its over 300,000 residents will also be making 'green trips' by walking, cycling or using public transport to reduce carbon emissions.
Related Video - http://tinyurl.com/569tkr
Moreover, green technologies will be adopted to ensure effective and efficient recycling of refuse, sewage and wastewater.
The eco-city is located just 40 kilometres from Tianjin city and 150 kilometres from Beijing.
Mr Mah said Singapore hopes to incorporate some of its experience in environment-friendly practices to the eco-city. At the same time, Singapore wants to glean some lessons from the joint project.
The minister said: "Some of the ideas are derived from what we are already doing here. For example, we are specifying that all the buildings in the eco-city will be 'Green Marked'. We will take some of the Green Mark (certified) buildings, adapt it to the rules in China and implement a Green Mark in China.
"But in the process of doing it, I'm sure we will adapt and improve, and marry the best practices from both sides. I would expect that we will take the improved version and bring it back to Singapore. That's why I say that it's an interactive process - we are learning from each other."
Mr Mah said successful features in the eco-city will be implemented in new developments such as those in Jurong.
The eco-city will be built based on a concept very much like Singapore's town centres, so the new city will have educational institutions, medical centres, commercial and residential areas within walking distances.
A total of 20 percent of its residential area will also be allocated for public housing.
Singapore plans to share its expertise in wastewater management, urban planning and transportation as well.
"At the end of the day, there will be a clear Singapore imprint in this... it will reflect a lot of the experiences we have gathered in Singapore over many, many years," said Mr Mah.
The first development, which is expected to be ready in three years' time, is an area that covers over three square kilometres in the south of the eco-city. Facilities in this area include a business park and a university.
The masterplan for the eco-city will be released for public consultation in Tianjin sometime next week. But before that, work has already started on detailed plans for the start-up area.
When completed, the eco-city is expected to be a model for other cities in China, as well as other parts of the world.
It is the second joint project by the Singapore and Chinese governments after the Suzhou Industrial Park.
The Chinese government has identified the project as the third most important development in China after the Pearl River Delta and the Yangtze River Delta projects. - CNA/so
PM Lee Positive About Proposal To Link Up S'pore, JB Urban Rails
Source : Channel NewsAsia, 17 April 2008
Prime Minister Lee Hsien Loong has responded positively to a suggestion by Johor's Chief Minister Abdul Ghani Othman to link up the urban rails of Singapore and Johor Bahru.
The issue was discussed when visiting Malaysian Foreign Minister Rais Yatim called on Mr Lee at the Istana on Thursday morning, said Foreign Minister George Yeo at a joint news conference with his Malaysian counterpart later in the day.
The proposal will now be discussed by a joint ministerial committee which is looking into the Iskandar Malaysia project. This committee was set up after PM Lee and his Malaysian counterpart, Mr Abdullah Badawi, had their first retreat in Langkawi last year.
Related Video - http://tinyurl.com/5gbqcq
Singapore is the first stop in a series of introductory visits by the new Malaysian foreign minister, and this signals the special relationship between the two neighbours.
Dr Rais said: "Between Malaysia and Singapore, there is only a one-way street and that is to forge ahead together for a future within ASEAN and to share the good fortunes of what the world will offer.
"No one will come to us and help us except ourselves. Therefore, the commonality between the two nations should be at the top of priority lists and the differences – whatever they are – should be left to be scored later."
Among the issues discussed between the Singapore and Malaysian foreign ministers is how to further integrate the economies of both countries and to enhance connectivity across the causeway.
The Iskandar Malaysia project is one of the cooperation projects which both foreign ministers hope would enhance bilateral ties between Singapore and Malaysia. The project's joint ministerial committee is already in place to look into various proposals.
Mr Yeo said: "Last year, the two prime ministers had their retreat in Langkawi which was very successful, and we are hoping that Singapore can host the next retreat sometime in the near future."
He added that the International Court of Justice is likely to release its ruling on the disputed island of Pedra Branca next month, and both foreign ministers have agreed that they would congratulate whichever country that emerges victorious.
"Whatever the decision, we would accept it and it will not affect bilateral relations. The lighthouse would continue to provide valuable facilities to all navigators, so nothing should change. This is the common position we take," said Mr Yeo.
Dr Rais said: "What is committed through the rule of law, through international arrangement, we must respect. If we do not do that, then being neighbourly is not substantive enough."
On the current political situation in Malaysia, Dr Rais stressed that the question of leadership change is not on the agenda at all.
He said: "These are what we call political airings or political elements in the thoughts of certain sectors in the party as well as outside the party... more so in the opposition.
"The litmus test would be at the (UMNO) general assembly, which would be held in December, and I am most confident that Datuk Seri Abdullah will be the winning element for us all and the Barisan (Nasional) will continue to be a strong and prospective true government for Malaysia."
Dr Rais is also confident that Malaysia's relationship with Singapore will continue to improve going forward.
On Thursday afternoon, the Malaysian foreign minister also called on Senior Minister Goh Chok Tong at the Istana and had a friendly exchange of views on recent developments in Malaysia and the state of bilateral relations.
The two leaders reaffirmed the importance of having good neighbourly relations between the two countries. - CNA/so
Prime Minister Lee Hsien Loong has responded positively to a suggestion by Johor's Chief Minister Abdul Ghani Othman to link up the urban rails of Singapore and Johor Bahru.
The issue was discussed when visiting Malaysian Foreign Minister Rais Yatim called on Mr Lee at the Istana on Thursday morning, said Foreign Minister George Yeo at a joint news conference with his Malaysian counterpart later in the day. The proposal will now be discussed by a joint ministerial committee which is looking into the Iskandar Malaysia project. This committee was set up after PM Lee and his Malaysian counterpart, Mr Abdullah Badawi, had their first retreat in Langkawi last year.
Related Video - http://tinyurl.com/5gbqcq
Singapore is the first stop in a series of introductory visits by the new Malaysian foreign minister, and this signals the special relationship between the two neighbours.
Dr Rais said: "Between Malaysia and Singapore, there is only a one-way street and that is to forge ahead together for a future within ASEAN and to share the good fortunes of what the world will offer.
"No one will come to us and help us except ourselves. Therefore, the commonality between the two nations should be at the top of priority lists and the differences – whatever they are – should be left to be scored later."
Among the issues discussed between the Singapore and Malaysian foreign ministers is how to further integrate the economies of both countries and to enhance connectivity across the causeway.
The Iskandar Malaysia project is one of the cooperation projects which both foreign ministers hope would enhance bilateral ties between Singapore and Malaysia. The project's joint ministerial committee is already in place to look into various proposals.
Mr Yeo said: "Last year, the two prime ministers had their retreat in Langkawi which was very successful, and we are hoping that Singapore can host the next retreat sometime in the near future."
He added that the International Court of Justice is likely to release its ruling on the disputed island of Pedra Branca next month, and both foreign ministers have agreed that they would congratulate whichever country that emerges victorious.
"Whatever the decision, we would accept it and it will not affect bilateral relations. The lighthouse would continue to provide valuable facilities to all navigators, so nothing should change. This is the common position we take," said Mr Yeo.
Dr Rais said: "What is committed through the rule of law, through international arrangement, we must respect. If we do not do that, then being neighbourly is not substantive enough."
On the current political situation in Malaysia, Dr Rais stressed that the question of leadership change is not on the agenda at all.
He said: "These are what we call political airings or political elements in the thoughts of certain sectors in the party as well as outside the party... more so in the opposition.
"The litmus test would be at the (UMNO) general assembly, which would be held in December, and I am most confident that Datuk Seri Abdullah will be the winning element for us all and the Barisan (Nasional) will continue to be a strong and prospective true government for Malaysia."
Dr Rais is also confident that Malaysia's relationship with Singapore will continue to improve going forward.
On Thursday afternoon, the Malaysian foreign minister also called on Senior Minister Goh Chok Tong at the Istana and had a friendly exchange of views on recent developments in Malaysia and the state of bilateral relations.
The two leaders reaffirmed the importance of having good neighbourly relations between the two countries. - CNA/so
长春产业Allgreen Properties获庭令 美景园25业主须集体售屋
《联合早报》Apr 17, 2008
长春产业（Allgreen Properties)昨天取得高庭的庭令，下令丽景花园公寓(Regent Garden)的25名业主必须完成集体出售计划。
这是一个重要的法律先例，因为高庭下令集体出售计划必须执行，推翻了分层地契局（STB)在今年1月30日裁决丽景花园公寓的集体出售，因”缺乏诚信”而宣判无效的判决。
长春产业昨晚发出文告说，高庭同意公司的看法，即错误引导签署协议及违约的指责是没有根据的，高庭也同意分层地契局裁决不批准集体出售是不可为法庭所接受的。
文告说，高庭因此下令25个业主遵守协议，并在今年5月16日完成丽景花园公寓的买卖，高庭同时下令25个业主支付长春产业的堂费。
丽景花园公寓共有31个单位。去年7月，丽景花园公寓的25个业主签署协议同意出售，剩下的六个业主则未签署协议，后来长春产业劝服了这六个业主同意出售，但之前的25个业主却改变了主意，尝试重新谈判。
这些业主于去年7月20日向分层地契局提出申请，要集体出售丽景花园公寓无效，七天后，六名业主也向分层地契局提出反对售卖该公寓。但这六名业主在去年11月26日至28日之间先后都同意出售单位，并通知分层地契局，他们决定撤销之前提出的反对申请。
长春产业说，这25名业主指他们是在错误引导下签署协议，因为销售金额是个低估的价值（undervalue)，他们指长春产业违反了协议，然后要长春产业提高销售价。
长春产业说：“长春产业维持自己的立场，既然业主已同意出售，因此没有必要获得分层地契局的批准，分层地契局所关注的是出售计划没有取得一致的协议。”
长春产业是在去年4月26日以3400万元购买位于西海岸路的丽景花园公寓，长春产业指这个价格是当时的最高标价，也是附近房地产的最高集体出售价格之一。然而在同年12月19日，25个业主通过代表律师指出，买卖双方有基础上的“共同误解”，才会达致3400万元的销售金额。而这个“共同误解”是出在发展基线（baseline）的计算方面，双方以为此项目的发展基线容积率是0.8355，但过后才获悉容积率实为1.31。
因此，25个业主认为，由于发展商需要支付的发展费减少了，3400万元的销售价格过低。若加入实际的发展费，售价应该是介于3970至4200万元之间。
长春产业（Allgreen Properties)昨天取得高庭的庭令，下令丽景花园公寓(Regent Garden)的25名业主必须完成集体出售计划。
这是一个重要的法律先例，因为高庭下令集体出售计划必须执行，推翻了分层地契局（STB)在今年1月30日裁决丽景花园公寓的集体出售，因”缺乏诚信”而宣判无效的判决。长春产业昨晚发出文告说，高庭同意公司的看法，即错误引导签署协议及违约的指责是没有根据的，高庭也同意分层地契局裁决不批准集体出售是不可为法庭所接受的。
文告说，高庭因此下令25个业主遵守协议，并在今年5月16日完成丽景花园公寓的买卖，高庭同时下令25个业主支付长春产业的堂费。
丽景花园公寓共有31个单位。去年7月，丽景花园公寓的25个业主签署协议同意出售，剩下的六个业主则未签署协议，后来长春产业劝服了这六个业主同意出售，但之前的25个业主却改变了主意，尝试重新谈判。
这些业主于去年7月20日向分层地契局提出申请，要集体出售丽景花园公寓无效，七天后，六名业主也向分层地契局提出反对售卖该公寓。但这六名业主在去年11月26日至28日之间先后都同意出售单位，并通知分层地契局，他们决定撤销之前提出的反对申请。
长春产业说，这25名业主指他们是在错误引导下签署协议，因为销售金额是个低估的价值（undervalue)，他们指长春产业违反了协议，然后要长春产业提高销售价。
长春产业说：“长春产业维持自己的立场，既然业主已同意出售，因此没有必要获得分层地契局的批准，分层地契局所关注的是出售计划没有取得一致的协议。”
长春产业是在去年4月26日以3400万元购买位于西海岸路的丽景花园公寓，长春产业指这个价格是当时的最高标价，也是附近房地产的最高集体出售价格之一。然而在同年12月19日，25个业主通过代表律师指出，买卖双方有基础上的“共同误解”，才会达致3400万元的销售金额。而这个“共同误解”是出在发展基线（baseline）的计算方面，双方以为此项目的发展基线容积率是0.8355，但过后才获悉容积率实为1.31。
因此，25个业主认为，由于发展商需要支付的发展费减少了，3400万元的销售价格过低。若加入实际的发展费，售价应该是介于3970至4200万元之间。
天津生态城Sino-Singapore Tianjing Eco-city将建公共住屋
《联合早报》Apr 17, 2008
中新天津生态城(Sino-Singapore Tianjing Eco-city)的规划蓝图出炉，所勾勒的现代市镇不仅有各种环保建设，也包括公共住屋，让普罗大众也能以生态城为家。
新加坡国家发展部长马宝山在公开生态城规划蓝图的记者会上说，新方建议在生态城中提供受津贴的公共住屋，双方最后同意让两成的住宅面积，作为公共住房。
马宝山说：“我们将研究中国的各种公共住屋，也会分享新加坡的经验，以使生态城的公共住屋可让各阶层人民居住。”
有了公共组屋，生态城的定位更明确，它不仅能吸引富裕者为家，也标榜为适合一般市民居住的城市，让各阶层人民使用环保建设，和谐共处。
生态城联合工作委员会已接纳规划蓝图。天津政府下周将征询民意，再把修改后的蓝图提呈给中国当局批准。
新加坡国家发展部前天向媒体讲解生态城规划蓝图。
位于天津滨海新区的生态城，占地30平方公里，预定10到15年内建成，人口可达35万。生态城南部约3平方公里大的起步区将率先发展，预计在今年7月举行动土仪式，三到五年内竣工。
马宝山说，按照两国政府的愿景，生态城必须兼顾环保、经济发展与社会和谐三大目标，同时也能在中国其他地方推广与复制。他说，两国可利用生态城来试验新技术，但这个城镇不应是“试验品”，它的目标是为35万居民提供高素质及可持续性的生活环境。城内将使用各种环保新科技，不过会确保费用是人民负担得起。
马宝山是生态城中新部长级联合工委会的新方主席，也是新加坡可持续发展跨部门委员会联合主席。
根据规划蓝图，生态城将处处绿意盎然，绿地与河水占城镇超过四成面积，每人享有约12平方米的绿地，比新加坡的8平方米高。
生态城的交通系统会和绿色网络融为一体，作为城镇绿色脊椎的生态谷（Eco Valley）将与轻轨轨道、脚踏车道和人行道网络紧密结合，让大自然在步行范围里。
新加坡人所熟悉的环保特色也将在生态城出现。和新加坡一样，滨海新区缺乏自然水源，开发水源极为关键，公用事业局正协助生态城探讨设立海水淡化厂的可行性，进一步推广新加坡的水源科技。
建设局也考虑把新加坡推行的绿色建筑标志（Green Mark）计划用在生态城，确保所有建筑符合绿色标准。部分建筑也考虑以再生能源如太阳能和地热发电，目标是让再生能源为生态城提供15%能源。
最大挑战将是净化27公顷废水湖湖水
这座现代化城镇也尽量保留历史特色，现有的青坨子村和五七村不会消失，会被重新发展及定位。
如果发展蓝图落实，生态城居民可安全饮用自来水，以轻轨和脚踏车代步，沿途还可欣赏宜人的滨水风光和绿色景致。不过，浩大的工程面临重重挑战。生态城现址大部分为盐田，还有个27公顷大的废水湖，单是净化湖水就构成严峻挑战。
马宝山坦言，要把一片缺水的不耕地发展成宜居的环保城市不容易。
他说：“这是个巨大挑战，参与工作的人都知道这不容易完成。尽管如此，两国的友好关系加上对工程所付出的努力及展现的毅力，让我相信团队能按照时间表完成任务。”
他也重申生态城的意义。他说，中国是新加坡的战略伙伴，生态城是两国继苏州工业园区后另一旗舰项目，为两国交流及学习提供新的平台。
生态城联合工作委员会本月初在我国召开第二次会议，确定了生态城总体规划纲要。中国住房与城乡建设部副部长仇保兴和马宝山主持了会议。
总体规划纲要由中国城市规划设计研究院、天津城市规划设计院，及市区重建局率领的新加坡团队联合起草。
中新天津生态城(Sino-Singapore Tianjing Eco-city)的规划蓝图出炉，所勾勒的现代市镇不仅有各种环保建设，也包括公共住屋，让普罗大众也能以生态城为家。
新加坡国家发展部长马宝山在公开生态城规划蓝图的记者会上说，新方建议在生态城中提供受津贴的公共住屋，双方最后同意让两成的住宅面积，作为公共住房。
马宝山说：“我们将研究中国的各种公共住屋，也会分享新加坡的经验，以使生态城的公共住屋可让各阶层人民居住。”有了公共组屋，生态城的定位更明确，它不仅能吸引富裕者为家，也标榜为适合一般市民居住的城市，让各阶层人民使用环保建设，和谐共处。
生态城联合工作委员会已接纳规划蓝图。天津政府下周将征询民意，再把修改后的蓝图提呈给中国当局批准。
新加坡国家发展部前天向媒体讲解生态城规划蓝图。
位于天津滨海新区的生态城，占地30平方公里，预定10到15年内建成，人口可达35万。生态城南部约3平方公里大的起步区将率先发展，预计在今年7月举行动土仪式，三到五年内竣工。
马宝山说，按照两国政府的愿景，生态城必须兼顾环保、经济发展与社会和谐三大目标，同时也能在中国其他地方推广与复制。他说，两国可利用生态城来试验新技术，但这个城镇不应是“试验品”，它的目标是为35万居民提供高素质及可持续性的生活环境。城内将使用各种环保新科技，不过会确保费用是人民负担得起。
马宝山是生态城中新部长级联合工委会的新方主席，也是新加坡可持续发展跨部门委员会联合主席。
根据规划蓝图，生态城将处处绿意盎然，绿地与河水占城镇超过四成面积，每人享有约12平方米的绿地，比新加坡的8平方米高。
生态城的交通系统会和绿色网络融为一体，作为城镇绿色脊椎的生态谷（Eco Valley）将与轻轨轨道、脚踏车道和人行道网络紧密结合，让大自然在步行范围里。
新加坡人所熟悉的环保特色也将在生态城出现。和新加坡一样，滨海新区缺乏自然水源，开发水源极为关键，公用事业局正协助生态城探讨设立海水淡化厂的可行性，进一步推广新加坡的水源科技。
建设局也考虑把新加坡推行的绿色建筑标志（Green Mark）计划用在生态城，确保所有建筑符合绿色标准。部分建筑也考虑以再生能源如太阳能和地热发电，目标是让再生能源为生态城提供15%能源。
最大挑战将是净化27公顷废水湖湖水
这座现代化城镇也尽量保留历史特色，现有的青坨子村和五七村不会消失，会被重新发展及定位。
如果发展蓝图落实，生态城居民可安全饮用自来水，以轻轨和脚踏车代步，沿途还可欣赏宜人的滨水风光和绿色景致。不过，浩大的工程面临重重挑战。生态城现址大部分为盐田，还有个27公顷大的废水湖，单是净化湖水就构成严峻挑战。
马宝山坦言，要把一片缺水的不耕地发展成宜居的环保城市不容易。
他说：“这是个巨大挑战，参与工作的人都知道这不容易完成。尽管如此，两国的友好关系加上对工程所付出的努力及展现的毅力，让我相信团队能按照时间表完成任务。”
他也重申生态城的意义。他说，中国是新加坡的战略伙伴，生态城是两国继苏州工业园区后另一旗舰项目，为两国交流及学习提供新的平台。
生态城联合工作委员会本月初在我国召开第二次会议，确定了生态城总体规划纲要。中国住房与城乡建设部副部长仇保兴和马宝山主持了会议。
总体规划纲要由中国城市规划设计研究院、天津城市规划设计院，及市区重建局率领的新加坡团队联合起草。
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