Export Growth Slumps To Slowest Pace In Five Years

Source : The Straits Times, Jan 18, 2008

2.3% figure is well under official forecasts of between 4% and 6% growth

A SURPRISE contraction last month capped a disappointing year for Singapore exports, which missed official targets as growth slumped to its slowest pace in five years.

Expansion last year hit just 2.3 per cent, well under official forecasts of between 4 and 6 per cent and small change compared with the 8.5 per cent growth in 2006.

Last month's dismal figures reflect the wider downturn: Overseas sales of goods made here shrank for the second straight month, contracting 4.5 per cent against expectations for at least 5 per cent growth.

Pharmaceutical exports disappointed, failing to recover from a surprise contraction in November, while the electronics sector shrank for the 14th time in 15 months.

Economists had expected a rebound from November's 3.4 per cent contraction. A better December trade figure could have signalled that overall economic growth for the fourth quarter was better than an early estimate of 6 per cent.

But the dismal data out yesterday dashed such hopes, pointing instead to yet another weak month for manufacturers.

It has cast a pall over the new year, but trade agency IE Singapore is predicting a turnaround, forecasting export growth of between 4 and 6 per cent this year.

This is despite expectations that growth in all of Singapore's main markets will slow.

The trade agency is pinning its hopes on a long-overdue global technology recovery to provide enough boost to achieve its target.

'GDP growth of our trading partners will moderate, but we are hopeful that the other engines of growth for trade can help us,' said IE chief executive Chong Lit Cheong.

Exports last year were a major letdown. Growth was only 2.3 per cent - mainly because of shrinking exports of semiconductors, disk drives and telecom equipment. The number paled beside the 3 per cent predictions of many market economists.

Electronic exports shrank 9.2 per cent last month, as well as for the whole year.

'The electronics sector remains firmly in the doldrums,' said HSBC economist Robert Prior-Wandesforde. Much of this was due to a prolonged downturn in the global electronics cycle, he said. 'But Singapore has fared a lot worse than other tech-heavy countries, hinting at some more fundamental problem.'

By contrast, pharmaceuticals helped hold up overall exports, jumping 21 per cent for the whole of last year.

But a failure last month by the notoriously volatile sector to rebound from a surprise November contraction kept overall exports in the red for a second straight month.

IE is counting on a global chip recovery in the second half of this year to boost local electronic exports. Industry forecasts predict global chip sales to grow 6 to 9 per cent this year, up from last year's 3 to 4 per cent.

Two new pharmaceutical plants coming on stream this year could boost drug exports, said Mr Chong.

But all eyes are on the US, Singapore's No. 2 export market after Europe, which may be sinking into a recession. Mr Chong said IE's forecast may be revised if the country's economic outlook worsens from the agency's 1.5- to 2-per-cent forecast.

Indeed, some analysts said the IE growth target is ambitious. 'My best guess is that exports will grow 2 to 4 per cent, given our view of US growth at 0.5 per cent,' said Standard Chartered Bank economist Alvin Liew.

1,098 HDB Flats Now Open For Balloting

Source : The Straits Times, Jan 18, 2008

THE Housing Board yesterday launched a ballot for the sale of 1,098 flats in Bedok, Clementi, Queenstown and Jurong West with demand for public housing staying on the boil.

The flats are surplus units from the board's Selective En bloc Redevelopment Scheme, which relocates residents from ageing blocks to new ones nearby.

Such flats are usually highly coveted as they are located in mature estates near transport nodes and amenities.

Adding to the demand is the fact that recent hikes in private property prices have pushed more buyers to these government-subsidised flats.

Last month, an HDB ballot for 316 surplus flats in the outlying towns of Hougang, Sengkang and Punggol drew an overwhelming 5,147 applications.

The Government responded by committing to putting out about 6,000 new flats between last month and June.

Its latest sale exercise includes 234 studio apartments for the elderly in Queenstown and Jurong West, at a cost of $54,000 to $89,000 each.

There are also 164 three-room flats priced from $180,000 to $266,000, 516 four-room flats going for $282,000 to $400,000 and 184 five-room flats between $400,000 and $520,000.

Five unfurnished sample units in Clementi and Queenstown will be open for viewing.

While some of the flats are immediately available, others will be ready by 2012.

Online applications from potential buyers must be submitted by Feb 6.

A computer ballot will determine the queue position of eligible applicants and those shortlisted will be informed in April.

A-REIT Reports Record Occupancy Rate For Tenanted Properties

Source : Channel NewsAsia, 17 January 2008

Ascendas Real Estate Investment Trust (A-REIT) has reported record occupancy for its tenanted properties.

Its overall portfolio occupancy rate increased to a record high of 98.7 percent as at 31 December, compared to 96.1 percent a year ago.

The occupancy rate for A-REIT's multi-tenanted buildings also rose to 97 percent in the quarter ended December, compared with 96.2 percent in the previous three months.

This is mainly due to the continued healthy demand for business space in the business & science parks and hi-tech industrial sectors.

A-REIT secured leases for a total net lettable area of 46,933 square metres in the three months to December. The space leased out has brought in an annualised rental income of S$11.1 million.

Looking ahead, A-REIT said demand for industrial space is likely to remain healthy, particularly for the business parks and hi-tech industrial sectors, due to the tight supply in office space in the central business district and the fact that a number of multinational companies is setting up facilities in Singapore.

A-REIT said the anticipated high supply of 702,000 square metres in the logistics and distribution centres sector for the next two years is expected to dampen rental rate.

The Trust's portfolio comprises 51 percent multi-tenanted buildings and 49 percent sale-and-leaseback properties based on portfolio value. - CNA/so

Banyan Tree Branches Into China's Gansu Province With Resort Project

Source : Channel NewsAsia, 17 January 2008

Luxury resorts operator Banyan Tree Holdings is branching into China's north-western Gansu province.

It has signed a Memorandum of Understanding with the Dunhuang Government to develop and operate a resort at Gansu's Dunhuang county.

Banyan Tree Dunhuang is the latest addition to the group's growing portfolio of 15 resorts and city hotels across China.

This includes Banyan Tree Lijiang and Banyan Tree Ringha resorts in Yunnan province.

Dunhuang county is famous for its endless sand dunes and beautiful desert scenery and now attracts thousands of tourists from around the world.

Banyan Tree Dunhuang spans more than 31 hectares of virgin land near the Mogao Caves, which is listed as a UNESCO World Heritage Site.

The initial phase of the development will comprise two resorts under the Banyan Tree and Angsana brands.

Later phases will see the addition of up to three more resorts.

The development is slated for completion in 2011.

These new developments are not expected to have any material financial impact on the group's earnings and its net tangible assets for 2008. -CNA/vm

Applications For Over Half Of HDB Surplus Flats On First Day Of Launch

Source : Channel NewsAsia, 17 January 2008

The Housing and Development Board on Thursday launched the sale of more than 1,000 surplus flats available from the Selective En bloc Redevelopment Scheme (SERS) under the Balloting Exercise.

By 5pm, applications were received for more than half of the number available.

676 applications were submitted for 1,098 surplus units in Bedok, Clementi, Queenstown and Jurong West.

Their prices range between $282,000 and $335,000 for a four-room flat in Bedok and between $310,000 and $400,000 for a four-room flat in Queenstown.

The units comprise 234 studio apartments in Queenstown and Jurong West, 164 units of three-room flats, 516 units of four-room and 184 units of five-room flats in Bedok, Clementi and Queenstown.

Interested buyers have until 6 February to submit their applications. - CNA/ir