UOB's Q3 Net Profit Up 8.2% To S$501m

Source : Channel NewsAsia, 30 October 2007

Singapore's United Overseas Bank (UOB) said on Tuesday that its third-quarter net profit rose 8.2 percent from a year ago, boosted by a growth in lending and income from fees and commission.

Earnings came in at S$501 million from S$463 million in the same period last year, the company said in a statement to the stock exchange. Revenue for the three months to September was S$1.1 billion, up an annual 8.4 percent.

Net interest income grew 4.4 percent to S$714 million as lending expanded, while non-interest income increased 16.5 percent to S$393 million.

Compared with the second quarter, net profit fell 14.3 percent.

"The decrease was mainly due to lower trading and investment income resulting from mark-to-market losses from widening credit spreads triggered by the US sub-prime crisis," the bank said.

UOB said none of the S$388 million in collateralised debt obligations (CDOs) it holds as investment is in default.

For the September quarter, the bank said it set aside another S$20 million worth of provisions against its CDO investments, raising the total provision to S$55 million.

In addition, UOB made another S$46 million in provision for mark-to-market losses against its reserves.

"We are pleased with the results achieved. Despite uncertainties in the financial market, our core business remains strong," said the UOB Group's deputy chairman and chief executive Wee Ee Cheong.

"The market is undergoing a volatile period but the impact of the credit volatility on our core business has been minimal."

Last Friday, rival DBS Group Holdings, Southeast Asia's biggest bank, said its third-quarter net profit rose an annual 11 percent to S$610 million as lending expanded due to a strong economy.

Fees earned from stockbroking, investment banking, loan syndication and wealth management also contributed to the earnings, DBS said. - AFP/ir

Motorists Concerned Over New Hike In ERP Rates

Source : Channel NewsAsia, 30 October 2007

Many motorists are unhappy about the increased Electronic Road Pricing (ERP) charges.

The Land Transport Authority (LTA) announced another hike in ERP charges on Monday, including one that will cost motorists S$5.

This is the third time that ERP rates are being raised this year.

Drivers said they hope that with the recent increase in petrol prices, the raised charges could be delayed.

The biggest hike will hit those travelling on the Central Expressway (CTE), where rates will hit a high of S$5 after an increase of S$0.50.

Pao Kiew Tee, a motorist, said: "I don't think increasing the ERP is the way to control traffic. The traffic situation doesn't seem to improve. I think they must look at it more fundamentally, look from another point of view instead of increasing ERP."

Harry Soh, another motorist, said: "We are already financing a heavy petrol price right now so any increase in ERP, increases the burden of our so-called livelihood – we don't get a pay increment, but everything else is increasing!"

Some also have suggestions on how to ease the congestion on the roads.

"The COE should go higher, around S$80,000. The traffic is horrible, especially at the CTE and TPE. We must reduce the vehicle volume; there are just too many vehicles on the road," said Oh Boon Song, a taxi driver.

Janet Chee, another motorist, said: "If we can plan our route earlier or leave earlier, maybe it won't be so crowded. I don't know how we are going to expand the roads."

The ERP rate hike will be implemented on 5 November. - CNA/so

ICJ To Hear Pedra Branca Sovereignty Case Next Week

Source : Channel NewsAsia, 30 October 2007

The International Court of Justice (ICJ) will hold its public hearings on the sovereignty of Pedra Branca island and its outcrops, Middle Rocks and South Ledge, from November 6 to 23.

The 18-day hearings will take place at the Peace Palace in The Hague.

Singapore has exercised sovereignty over Pedra Branca, occupying the size of a football field, but Malaysia also lays claim on the island.

The case, going before the ICJ, follows three rounds of written pleadings exchanged between Singapore and Malaysia from March 2004 to November 2005.

The hearings take place under the terms of the special agreement signed by the foreign ministers of both countries to submit the dispute to the ICJ.

The Singapore delegation will include Deputy Prime Minister and Law Minister S Jayakumar and Chief Justice Chan Sek Keong.

Attorney-General Chao Hick Tin and Ambassador-At-Large Professor Tommy Koh, who is also serving as the agent of Singapore for this case, will join the delegation.

The delegation also comprises a team of experienced international legal counsels from countries such as the US and Britain. - CNA/ac

STB Resumes Hearing Of Horizon Towers Case

Source : Channel NewsAsia, 30 October 2007

The hearing on the troubled en bloc sale of Horizon Towers resumed at the Strata Titles Board (STB) on Tuesday with yet another twist: another lawyer appeared before the STB.

He is representing one owner from the majority and his client now rejects the sale and purchase agreement as well as the collective sale agreement.

Mr Cheong Yuen Hee said his client does not agree with the new sales committee's authority to extend the sale dateline.

One reason for this is that three original members of the sales committee have resigned. So Mr Cheong argued that this makes the agreements invalid.

But the STB did not allow Mr Cheong to participate in the hearing and asked him to produce his submissions in writing by the end of this week.

The Horizon Towers case was thrown back to the STB because the High Court ruled earlier this month that the Board was wrong to dismiss it in the first place.

The Board had thrown out Horizon Towers' application, saying it was defective because of three missing papers.

On Tuesday, it continued the hearing where it left off about two months ago.

The hearing is set to wrap up next month when the STB will eventually determine if the collective sale should proceed.

The hearing will resume next Tuesday (November 6) at the old Supreme Court, City Hall. - CNA/ch

Singapore Growth Seen Slowing In 2008: Ccentral Bank

Source : Channel NewsAsia, 30 October 2007

Singapore's economic growth, tipped at 7.0-8.0 percent this year, is expected to slow down next year, reflecting a weaker US economy, the central bank said on Tuesday.

The Monetary Authority of Singapore (MAS) said in its semi-annual Macro-economic Review that economic growth in 2008 is projected at 4.0-6.0 percent.

In its review, the MAS described the economic growth this year as "seemingly unrelenting" but with the IT-related cluster, including electronics manufacturing, as the exception.

The cluster's contribution to GDP fell from a 31 per cent average in the last six years to 4 percent in the first half of this year.

The central bank expects the sector to turn around next year as Singapore shifts into new types of products and builds new plants.

Selena Ling, Treasury Economist, OCBC Bank, says: "I think we recognise that electronics sector is a very competitive sector. Of course the pressures are there for Singapore to always move up the value-added chain and I've no doubt that the industry is actually going through a transition. And given that the tech sector has been lagging behind for so many quarters, there should be some light at the end of the tunnel."

The MAS is not ruling out a slowdown in consumer spending in the US nor the risk of higher oil prices.

It expects overall GDP growth to come in at 4.0 to 6.0 percent next year.

This is lower than the 6.5 percent average forecast by economists in a MAS poll taken in September.

Alvin Liew, Global Research Economist, Standard Chartered, says: "Our in-house view for 2008 GDP growth is expected to come in at 5.7 percent, that's on the top half the MAS growth forecast range. We see this slowdown, a few variables is in play, one of it is we're expecting a slower external market growth - we're seeing a moderation in growth in the US markets. Secondly, of course, we're looking at higher oil prices playing a part."

The MAS says CPI inflation is now expected to come in at 1.5 to 2 percent for this year, up from the previous forecast of 0.5 to 1.5 percent.

It expects this to climb to 3.5 percent in the first half of next year, before easing a little in the second half to take overall figure to 2 to 3 percent for 2008.

The MAS also tested the hypothesis that the Asian economy is decoupled from the US economy and it said it found little evidence to support that, although the link has weakened for the short term, mitigated by growth in other parts of the world and demand in this region. - CNA/ch