Many Support Annuity Exemption For The Chronically Ill

Source : Channel NewsAsia, 11 September 2007

SINGAPORE : Many Singaporeans agree that it is good to exempt those with severe chronic illnesses from the compulsory annuity scheme.

They say it is only fair to exclude those who won't live long enough to benefit from a longevity insurance.

But the question is - just who qualifies as a chronically-ill person?

Experts say one in three Singaporeans is expected to get some form of cancer in their lifetime.

And one in four is already suffering from some kind of chronic illness.

So does this mean that there will be a big drop-out from the annuity scheme?

Annuity plans are currently not that popular.

Only about 4 percent of those who turned 55 have bought such a plan, also dubbed longevity insurance.

And with more people living longer, the Government wants to introduce a compulsory annuity scheme.

Under the proposal, those who turn 55 will have to use a small part of their CPF (minimum sum) savings to buy an annuity.

The plan will pay them a small monthly income of about $300, once their CPF minimum sum runs out, when they reach the age of 85.

But not everyone supports that idea.

Many argue that they may not live beyond 85 to enjoy the payout from the insurance.

They welcome Mr Lim Boon Heng's suggestion on Sunday that some groups be exempted from the compulsory scheme.

The Minister in Charge of Ageing Issues said those who have already bought an annuity plan, or are suffering from severe or chronic illnesses, may be excluded.

Madam Halimah Yacob, Chairman for Government Parliamentary Committe on Health, said: "The suggestion that those who are suffering from severe or chronic illnesses should be excluded is a practical one because we need to look at what is the objective of the scheme.

"And the objective is actually to help people take care of their retirement needs after the age of 85. So if there are Singaporeans who feel that their health condition is very poor, and they are not likely to benefit from the annuity, then I think it is truly practical to exclude them from the annuity scheme."

"On the other hand, issues that have to be considered is who is allowed to be exempted from the scheme because if too many are exempted from the scheme, then the base becomes smaller and there is the problem of the premiums becoming higher for everyone else."

Madam Halimah, who is currently in China, added that the big question then is - who should be exempted from the scheme?

The CPF Board currently lifts the minimum age rule on those who are certified by doctors to be so ill that their chances of recovery are very small.

It says: "To apply for early withdrawal of CPF, a CPF member, who is permanently disabled or has severe medical conditions that reduce his life expectancy, has to submit his application with a recent doctor's memo on his health status, to CPF Board.

"The Board will then obtain a medical report from his doctor or refer him to the Board's panel of doctors to assess his application.

"Eligible members can withdraw a lump sum only after setting aside sufficient funds for their medical and living expenses. Members who are terminally-ill can withdraw all their CPF savings from their Ordinary, Special and Retirement Accounts in one lump sum."

And for some who have a doctor's certification that they cannot work, they are also exempted. So they can withdraw their CPF money, regardless of their age.

So do not expect to be exempted from the compulsory annuity scheme if you are among the one million Singaporeans who suffer from chronic illnesses like stroke, diabetes, high blood pressure or high cholesterol.

You will need proper medical certification from the doctors that you are unlikely to benefit from the longevity insurance scheme.

Madam Halimah said: "It will not be easy, because who will be eligible to be exempted? Obviously that will be a major issue because first of all, how are you going to draw up the criteria and actual implementation of it."

Besides setting up clear criteria on who should be exempted, another challenge is making sure that the administration costs incurred remain low when someone applies to be exempted. - CNA/de

Asian Stocks Wobble As Markets Fret Over US Economy

Source : Channel NewsAsia, 10 September 2007

TOKYO : Asian stock markets ended mostly weaker Monday, hit by heavy losses on Wall Street after a surprise drop in US payrolls sparked fears the world's largest economy may be heading for recession, dealers said.

But the region's bourses finished well off their lows for the day, while some, such as Shanghai and Hong Kong, managed to end in positive territory.

Investors are now pinning their hopes on a Federal Reserve interest rate cut to shield the economy from the fallout from the US housing slump, dealers said.

"All eyes remain on the US where the market has already priced in a rate cut - the question is just how much," said Macquarie Private Wealth Management private client adviser Joseph Youssef in Sydney.

Hope of a US rate cut helped the main European bourses to eke out modest gains at the start of the week after steep falls on Friday.

But many Asian stocks suffered losses after US and European markets were rattled Friday by news that the US economy lost 4,000 payroll jobs in August, the first decline in four years and far below market expectations.

"US employment has been growing for the past four years so the fall was pretty scary," said Hirokazu Fujiki, equity strategist at Okasan Securities.

"At the same time what is supporting stocks is expectations for a cut to the Fed funds rate on September 18. Investors are waiting ahead of developments in the United States. That's why there wasn't a shock sell-off," he added.

The US payrolls report stoked fears of a US recession, despite assurances from the Fed that the economy was holding to a modest growth rate and that the slump in housing had been contained, dealers said.

"The US employment data reinforced investor uncertainties about the future course of the US economy on top of ongoing worries about sub-prime loans," said Katsuhiko Hiroshige, a market analyst at Traders & Co.

Investors hope that the US can avert a recession if the Fed acts swiftly and aggressively to lower borrowing costs, which could help ease the housing crisis and the credit squeeze.

The federal funds rate now stands at 5.25 percent.

Adding to the jitters about the health of the global economy, Japan said its economy shrank by 0.3 percent in the three months to June from the previous quarter as firms cut spending on new factories and equipment.

Japanese share prices closed down 2.2 percent in with exporter shares particularly hard hit after the dollar slumped against the yen and other currencies on news of the US job losses.

Elsewhere, Sydney ended 1.4 percent lower, Seoul gave up 2.6 percent, Taipei slipped 0.9 percent and Wellington dipped 0.2 percent.

Manila declined 1.6 percent, Singapore slid 1.4 percent, Kuala Lumpur lost 1.1 percent and Jakarta ended 1.4 percent lower.

But in Shanghai Chinese share prices closed 1.5 percent higher as strong prospects for the auto industry sparked a late turnaround, dealers said.

And Hong Kong share prices closed 0.1 percent higher Monday as strong gains in the local stock market operator helped a recovery from early losses on worries over the US economy, dealers said. - AFP/ch

Japan's Economy Shrinks, Adding To Global Concerns

Source : Channel NewsAsia, 10 September 2007

TOKYO : Japan's economy contracted in the second quarter of 2007 as firms cut spending on new factories and equipment, the government said Monday, adding to jitters over the global economic climate.

The setback to Japan's economic recovery, which comes just as the US economy shows signs of faltering, further reduced expectations of the Bank of Japan raising its super-low interest rates again any time soon.

Japan's gross domestic product (GDP) shrank by 0.3 percent in the three months to June from the previous quarter and by 1.2 percent on an annualised basis, the Cabinet Office said.

The figures were much worse than an initial estimate of positive quarter-on-quarter growth of 0.1 percent for an annualised rate of 0.5 percent.

It was the first contraction in three quarters for Japan, which has been slowly recovering after falling into the economic doldrums in the early 1990s.

Corporate capital spending, which had been the key growth driver of the world's second-largest economy in recent years, marked its second straight quarterly decline.

But the government said Japan's economic recovery remained intact.

"I expect the trend of a sustained economic recovery to continue," said Finance Minister Fukushiro Nukaga, pointing to a gradual recovery in consumer demand and improved corporate profits.

Even so the weak report was seen as further cutting the chances of the Bank of Japan raising interest rates again in the near future.

"This contraction, combined with the worse-than-expected US jobs data, means that there's no possibility of the Bank of Japan raising interest rates this month or next month," said BNP Paribas economist Yoshimasa Maruyama.

A US economic slowdown, one of the risks that the Japanese central bank has previously noted, now appears to be materialising, he said.

"There will probably be no rate hikes during this year or by the end of the fiscal year to March, given the condition of the US economy," Maruyama said.

BoJ governor Toshihiko Fukui has warned of the risk of keeping interest rates very low for too long, but the government argues it is too early to hike rates again with deflation lingering and financial markets in a fragile state.

"The central bank can wait longer, as there is definitely no imminent inflationary risk that it needs to address by hiking interest rates," said Norinchukin Research Institute senior economist Takeshi Minami.

Japanese share prices fell sharply as the weak GDP figures added to concerns about the fallout from the US housing slump after Friday's news of a surprise drop in US employment, the first in four years.

The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares was down 340.49 points or 2.11 percent at 15,781.67 by the lunch break.

The GDP contraction had been expected after a survey used to calculate the revisions last week showed that capital investment by Japanese companies fell in the three months to June for the first time in 17 quarters.

Analysts said that a change in sample size of the survey had likely affected the result.

The economy should return to positive growth in the third quarter of 2007 but the pace may be sluggish due to the weakness of the US economy, said Taro Saito, a senior economist at NLI Research Institute said.

"An export-led recovery may be difficult in the latter half of the year," he said.

Past GDP estimates were also revised, showing the economy shrank by 0.1 percent in the third quarter of 2006, despite the government's official view that Japan is having its longest sustained economic recovery in post-war times. - AFP

CityDev Wins Beach Road Site Tender For $1.69b

Sep 10, 2007


















The plum 3.5ha site in Beach Road has been clinched by a consortium led by CityDev, with its tender price of $1.69b. It includes four conservancy buildings - including the former NCO Club building - which are to be restored for adaptive reuse.

A GROUP led by property firm City Developments (CityDev) has clinched a plum commercial site in Beach Road - seen by some as the last iconic site in town - at $1.69 billion.

CityDev's subsidiary company Scottsdale Properties had teamed with Dubai state investor Istithmar and Israeli developer Elad for the bid, said the Urban Redevelopment Authority (URA) in a statement on Monday.

The historic 3.5ha site is just up the road from Raffles Hotel. The land parcel is bounded by Beach Road, Bras Basah Road, Nicoll Highway and Middle Road and located at the crossroads of Marina Centre and the Civic District.

The Marina Centre area is Singapore's key convention and hotel hub with a number of major hotel developments - Ritz-Carlton Millenia, Marina Mandarin, Pan Pacific and The Oriental together with the Suntec Singapore International Convention & Exhibition Centre. The Civic District includes several historical buildings and places - the former Supreme Court and City Hall, War Memorial Park and the Padang and the world-renowned Raffles Hotel.

URA said the site includes four conservation buildings along Beach Road - the former NCO Club building and Block 1, 9 and 14 of the former Beach Road Camp - which are to be restored for adaptive reuse.

Hot competition
Competition was so keen in the red-hot market that some property heavyweights submitted two bids in the hope of increasing their chances.

Among the big names, Indonesia's Lippo Group - which already has extensive interests in Singapore - and Keppel Land (KepLand) put in two proposals each.

Lippo submitted its proposals under Beach Development and Nicoll Development.

KepLand tied up with a partner, Billion Rise - believed to be a vehicle for

Hong Kong giant Cheung Kong Holdings, another foreign group with interests in Singapore - for both of its bids. It tendered under Ocean & Capital Properties and Mansfield Developments.

CapitaLand submitted its proposal under various parties, all featuring the name 'Brilliant'.

The sixth proposal was from Colonnade Properties and Beacon Strategic Investments. This is led by Pontiac Land's Pontiac Investments.

The site can be built up to a gross floor area of 146,827 sq m and allows for a high-quality mixed-use development featuring mostly prime office space and hotel rooms.

Property experts say it is a large site affording the opportunity for an eye-catching development.

When the tender was launched in March, consultants had said the site could fetch $1 billion to $1.4 billion. URA had said the hotel and office space will add to the critical mass of such space in the area.

Concept proposal

The URA gave details of the CityDev consortium's concept proposal in a statement:

'Central to the concept proposal of the winning bid is the adoption of environmental design approach and green technology to create a distinctive, high-quality development for the site that responds well to the tropical climate and the urban context.

'The key feature in the design is a large 'environmental filter' canopy that covers over the open spaces and ties together the new and conservation buildings within the site. This structure provides protection from the sun and rain, yet maintains a naturally ventilated and attractive environment below it.

' The concept proposal also provides an attractive 1st storey layout which is highly permeable, open and welcoming. It contains a series of internal streets, inspired by the finer grain street network at the nearby Seah Street and Purvis Street area, sunken courtyards and tiered gardens lined with activity-generating uses, such as shops, cafes and F&B outlets.

'The well-conceived connection from the MRT Station features a 'green axis' that ascends gradually from the basement level where the MRT entrance and exit are located to the street level through a series of cascading steps and multi-tiered garden spaces.

'This pedestrian-friendly setting with an attractive series of sheltered public spaces and a variety of uses will help to enhance street level vibrancy and facilitate pedestrian movement through the site and to the surrounding areas.

'In terms of building form, the Concept Proposal features distinctive tower forms with sun-shading louvres, glass fa?ade treatments and extensive sky gardens that will contribute very positively to the skyline profile of the city.

'The building shape and slanting facades of the towers are also oriented and designed to catch prevailing winds and direct air flow down to the lower areas of the development to improve the micro climate of the ground level spaces. The undulating geometry of the environmental filter canopy is also designed to help induce cooling air currents through the spaces below.

'All these elements, together with the other 'green' features, such as incorporation of photovoltaic cells on the building facades and the environmental canopy, contributed to the scheme potentially being able to achieve a Green Mark Platinum rating. This is the highest possible rating awarded by the BCA for buildings in Singapore that feature energy-efficient, water-efficient and environmentally friendly design.

'Overall, the concept proposal offers a compelling and attractive scheme which, once implemented, would create a truly distinctive development and an exemplary showcase of 'green' architecture in Singapore.'

Consortium Including CityDev Wins Beach Road Site For S$1.69b: URA

Source : Channel NewsAsia, 10 September 2007

SINGAPORE : The Urban Redevelopment Authority (URA) said on Monday that a group including City Developments (CityDev) has clinched a 3.5-hectare downtown commercial land site for S$1.69 billion (US$1.11 billion).

The consortium comprises Scottsdale Properties Pte Ltd (a subsidiary company of CityDev), Istithmar Beach Road Fze and Elad Group Singapore Pte Ltd.

The land was placed for tender under the Confirmed List of the Government Land Sales Programme.

Analysts say the price was in line with expectations.

The land parcel is bounded by Beach Road, Bras Basah Road, Nicoll Highway and Middle Road and occupies a prime and highly strategic nodal location within Singapore's Downtown.

Located directly adjacent to the Circle Line Esplanade MRT station, the future development will also enjoy convenient access to the rail network.

The consortium edged out six other bids for the mixed development with its winning design.

Donald Han, Managing Director, Cushman & Wakefield, said: "What's interesting is that besides City Developments, which is well known, we've got Istithmar - they are well-known developers of the Dubai World. They also own the Barneys of New York, so we might potentially see Barneys in Singapore, and you've got Elad who are experienced New York developers who are also owners of New York Hotel Plaza. They are also contemplating to bring the Plaza Hotel into other parts of the world, so Singapore could be the first stop."

Flanked by Suntec City and the renowned Raffles Hotel, the new development will be a prominent feature of the Marina Centre.

It will not only alter the skyline but will also change the way traffic flows in the area, with alfresco dining and a pedestrian underground network to City Hall MRT station.

The URA adopted a two envelope bid process, which meant they chose the best designs first before prices of the bids were revealed.

Only two concepts satisfied the criteria and the City Developments consortium beat Ocean & Capital Properties and Billion Rise with a higher bid.

Ocean's bid was S$1.39 billion.

While analysts say the bid price was within expectations, they see total project amounting to more than S$2.5 billion.

Donald Han said: "We were expecting between S$1,000 to S$1,100 per square foot, per plot ratio. The price came to about S$1,062 psf. I think that's within reasonable range.

"All in all, if you look into the total quantum that the developer is going to put into the project, we're looking at S$1.6 billion in terms of land cost. And if you include another billion in terms of your interest cost, construction, the total consideration, project cost will come to about S$2.6 billion."

Central to the winning design is the adoption of environmentally friendly features such as the use of solar power. - CNA/ch

SINGAPORE : The Urban Redevelopment Authority (URA) said on Monday that a group including City Developments (CityDev) has clinched a 3.5-hectare downtown commercial land site for S$1.69 billion (US$1.11 billion).

The consortium comprises Scottsdale Properties Pte Ltd (a subsidiary company of CityDev), Istithmar Beach Road Fze and Elad Group Singapore Pte Ltd.

Related Video Link - http://tinyurl.com/3dt7ld
Consortium, including CityDev, wins Beach Road site for S$1.69b: URA

Related Video Link - http://tinyurl.com/2rqfpn
CityDev says its investment in South Beach project will hit S$2.73b

The land was placed for tender under the Confirmed List of the Government Land Sales Programme.

Analysts say the price was in line with expectations.

The land parcel is bounded by Beach Road, Bras Basah Road, Nicoll Highway and Middle Road and occupies a prime and highly strategic nodal location within Singapore's Downtown.

Located directly adjacent to the Circle Line Esplanade MRT station, the future development will also enjoy convenient access to the rail network.

The consortium edged out six other bids for the mixed development with its winning design.

Donald Han, Managing Director, Cushman & Wakefield, said: "What's interesting is that besides City Developments, which is well known, we've got Istithmar - they are well-known developers of the Dubai World. They also own the Barneys of New York, so we might potentially see Barneys in Singapore, and you've got Elad who are experienced New York developers who are also owners of New York Hotel Plaza. They are also contemplating to bring the Plaza Hotel into other parts of the world, so Singapore could be the first stop."

Flanked by Suntec City and the renowned Raffles Hotel, the new development will be a prominent feature of the Marina Centre.

It will not only alter the skyline but will also change the way traffic flows in the area, with alfresco dining and a pedestrian underground network to City Hall MRT station.

The URA adopted a two envelope bid process, which meant they chose the best designs first before prices of the bids were revealed.

Only two concepts satisfied the criteria and the City Developments consortium beat Ocean & Capital Properties and Billion Rise with a higher bid.

Ocean's bid was S$1.39 billion.

While analysts say the bid price was within expectations, they see total project amounting to more than S$2.5 billion.

Donald Han said: "We were expecting between S$1,000 to S$1,100 per square foot, per plot ratio. The price came to about S$1,062 psf. I think that's within reasonable range.

"All in all, if you look into the total quantum that the developer is going to put into the project, we're looking at S$1.6 billion in terms of land cost. And if you include another billion in terms of your interest cost, construction, the total consideration, project cost will come to about S$2.6 billion."

Central to the winning design is the adoption of environmentally friendly features such as the use of solar power. - CNA/ch