Source : The Business Times, April 26, 2008
But it drops two positions in global ranking to third
SINGAPORE is still the best place in Asia to do business.
But it has slipped two spots in the global ranking to third, pulled down by slower trade growth and limited market size.
Out of 82 countries, Denmark was rated the best place to invest in over the next five years by the Economist Intelligence Unit (EIU). Finland ranked second.
'Singapore's economy is undergoing a necessary transition towards more services and domestic demand,' said EIU associate director Sudhir Vadaketh.
'This involves the slowing of export and import growth (of goods and non-factor services),' he said.
The shift will prove beneficial as it will wean the Singapore economy off heavy dependence on exports, he said.
'However, because of that slowing in trade growth, Singapore falls a bit on the market opportunities measurement in our ranking.'
Singapore's rising cost of living and higher prices for commercial space were also taken into account.
Nonetheless, Singapore remains the most attractive business environment in the Asia-Pacific - four spots above Hong Kong and 15 places above Taiwan.
Singapore was commended for its flexible labour market, favourable tax regime, openness to trade and strong infrastructure.
The corporate tax rate, for instance, has been cut progressively over the years from 40 per cent in 1985 to 18 per cent from this year, in a bid to reduce business costs and attract new corporate investment.
'Overseas investors are attracted by Singapore's pro-business approach and favourable economic prospects, as well as incentives available to encourage investment in high-technology industries,' EIU said in its rankings report.
Singapore's labour market and high-quality workforce scored well, but EIU said the island faces increasing competition from the rest of Asia with regard to costs.
Denmark did well in all the 10 categories studied by EIU, but its pro-business policies, labour flexibility and fiscal policy pushed it ahead.
Countries were ranked according to criteria such as political environment, market opportunities, policy towards foreign investment and taxes.
Monday, April 28, 2008
More American Expats Despite Cost Challenges
Source : The Business Times, April 26, 2008
THE rising cost of living, high residential rents and expensive office space are among contentious issues that plague the American expatriate community here.
However, these cons are outweighed by the benefit of being able to participate in global trade. 'Singapore is a good place to do business, especially for our members who are so regionally focused,' Steve Okun, the newly elected chairman of the American Chamber of Commerce (AmCham) Singapore, told BT. AmCham Singapore represents almost 2,700 members from more than 500 companies, and over US$25 billion of investments in Singapore.
Going forward, AmCham will look at broadening its reach to make it even more regionally focused, especially as Asean moves towards integration.
A prime opportunity to do this will be in 2009, when Singapore hosts the Asia-Pacific Council of American Chambers of Commerce (APCAC) meeting in March. It will be attended by local and American government officials, AmCham leaders and representatives of multinational companies and Asian small and medium-sized enterprises.
About 15,000 American expats live in Singapore. And the number has been rising despite a 2006 tax law change in the US that significantly increased the burden on Americans working overseas. APCAC, with other member AmChams, is lobbying to change the taxation, which has been labelled unfair.
'The number of Americans in Singapore has increased 25 per cent in the past two years,' said Mr Okun, raising the possibility that the tax change could have deterred even more Americans from moving overseas.
Another major problem for American expats is the limited number of places at international schools here, which has resulted in waiting lists, employers having to pay to procure 'enhanced placement rights' and even examples of 'key employees' being unable to relocate to Singapore because their children could not get a place in school.
Earlier this week, AmCham announced a new committee to address the education problem and will liaise with the government, foreign schools and AmCham members. This way, 'decision makers can make more informed decisions', said Mr Okun.
THE rising cost of living, high residential rents and expensive office space are among contentious issues that plague the American expatriate community here.
However, these cons are outweighed by the benefit of being able to participate in global trade. 'Singapore is a good place to do business, especially for our members who are so regionally focused,' Steve Okun, the newly elected chairman of the American Chamber of Commerce (AmCham) Singapore, told BT. AmCham Singapore represents almost 2,700 members from more than 500 companies, and over US$25 billion of investments in Singapore.
Going forward, AmCham will look at broadening its reach to make it even more regionally focused, especially as Asean moves towards integration.
A prime opportunity to do this will be in 2009, when Singapore hosts the Asia-Pacific Council of American Chambers of Commerce (APCAC) meeting in March. It will be attended by local and American government officials, AmCham leaders and representatives of multinational companies and Asian small and medium-sized enterprises.
About 15,000 American expats live in Singapore. And the number has been rising despite a 2006 tax law change in the US that significantly increased the burden on Americans working overseas. APCAC, with other member AmChams, is lobbying to change the taxation, which has been labelled unfair.
'The number of Americans in Singapore has increased 25 per cent in the past two years,' said Mr Okun, raising the possibility that the tax change could have deterred even more Americans from moving overseas.
Another major problem for American expats is the limited number of places at international schools here, which has resulted in waiting lists, employers having to pay to procure 'enhanced placement rights' and even examples of 'key employees' being unable to relocate to Singapore because their children could not get a place in school.
Earlier this week, AmCham announced a new committee to address the education problem and will liaise with the government, foreign schools and AmCham members. This way, 'decision makers can make more informed decisions', said Mr Okun.
CapLand Aborts Investment In Eurasia
Source : The Business Times, April 26, 2008
CAPITALAND has aborted its proposed investment in the properties of Eurasia Logistics, citing current challenging market conditions which do not support a mutually beneficial deal structure. CapitaLand had originally intended to take up an initial 10 per cent stake in the completed and stabilised assets of Eurasia Logistics following the completion of due diligence on Eurasia's properties.
CAPITALAND has aborted its proposed investment in the properties of Eurasia Logistics, citing current challenging market conditions which do not support a mutually beneficial deal structure. CapitaLand had originally intended to take up an initial 10 per cent stake in the completed and stabilised assets of Eurasia Logistics following the completion of due diligence on Eurasia's properties.
Higher Rents Boost UIC, SingLand Q1 Earnings
Source : The Business Times, April 26, 2008
HIGHER hotel and rental takings boosted the earnings of Singapore Land and parent United Industrial Corp (UIC) in the first quarter of this year.
Profit driver: SingLand's rise in net profit was due mainly to contribution from the Pan Pacific hotel
SingLand's net profit rose 20 per cent to $33.7 million as revenue rose 85 per cent to $83 million in the three months to March 31, due mainly to the contribution from the Pan Pacific Singapore hotel and higher rental income. Earnings per share increased to 8.2 cents from 6.8 cents.
Following Marina Centre Holdings' acquisition in April 2007 of the remaining 50 per cent interest in Hotel Marina City (HMC), which owns Pan Pacific Singapore, HMC became a wholly owned subsidiary of SingLand.
Gross rental income at $52.2 million was up 20 per cent, attributable mainly to higher rents, SingLand said.
'The Singapore office and retail rental market is expected to remain positive with moderate economic growth and tight supply of office space,' it said. 'With the ongoing global financial and economic uncertainties, the cautious sentiment in the private home market is expected to prevail.'
SingLand is a key office landlord here, with assets including Singapore Land Tower and SGX Centre in the heart of the business district.
At parent UIC, Q1 net profit increased 45 per cent to $32.1 million while revenue grew 85 per cent to $150.4 million. The jump in revenue was attributed to the consolidation of revenue from Pan Pacific hotel, higher sales of properties held for sale and recognised on percentage of completion basis, and higher rental income. UIC's earnings per share rose to 2.3 cents from 1.6 cents.
SingLand shares closed down three cents at $7.27 yesterday, while UIC shares fell two cents to $2.77.
HIGHER hotel and rental takings boosted the earnings of Singapore Land and parent United Industrial Corp (UIC) in the first quarter of this year.
Profit driver: SingLand's rise in net profit was due mainly to contribution from the Pan Pacific hotelSingLand's net profit rose 20 per cent to $33.7 million as revenue rose 85 per cent to $83 million in the three months to March 31, due mainly to the contribution from the Pan Pacific Singapore hotel and higher rental income. Earnings per share increased to 8.2 cents from 6.8 cents.
Following Marina Centre Holdings' acquisition in April 2007 of the remaining 50 per cent interest in Hotel Marina City (HMC), which owns Pan Pacific Singapore, HMC became a wholly owned subsidiary of SingLand.
Gross rental income at $52.2 million was up 20 per cent, attributable mainly to higher rents, SingLand said.
'The Singapore office and retail rental market is expected to remain positive with moderate economic growth and tight supply of office space,' it said. 'With the ongoing global financial and economic uncertainties, the cautious sentiment in the private home market is expected to prevail.'
SingLand is a key office landlord here, with assets including Singapore Land Tower and SGX Centre in the heart of the business district.
At parent UIC, Q1 net profit increased 45 per cent to $32.1 million while revenue grew 85 per cent to $150.4 million. The jump in revenue was attributed to the consolidation of revenue from Pan Pacific hotel, higher sales of properties held for sale and recognised on percentage of completion basis, and higher rental income. UIC's earnings per share rose to 2.3 cents from 1.6 cents.
SingLand shares closed down three cents at $7.27 yesterday, while UIC shares fell two cents to $2.77.
CCT Q1 Distributable Income At $35.9m
Source : The Business Times, April 26, 2008
DPU of 2.59 cents is 12.1% above forecast
CAPITACOMMERCIAL Trust (CCT) has announced a first-quarter distributable income of $35.9 million, or 12 per cent higher than forecast. Distribution per unit (DPU) for the three months ended March 31 came to 2.59 cents, better than the 2.11 cents a year ago and 12.1 per cent above forecast.
1 George Street: If its acquisition at a purchase price of $1.165 billion is approved and completed, CCT's total asset size will grow to $6.5 billion
Net property income totalled $49.6 million or 8.8 per cent above forecast. 'CapitaCommercial Trust achieved higher rental income as Singapore experienced considerable rental growth in the office market over the past 12 months,' said Richard Hale, chairman of CapitaCommercial Trust Management, which manages the trust. 'This growth, together with our strategy of pro-active asset and prudent capital management, increased the first-quarter 2008 distribution per unit significantly by 22.7 per cent over the same quarter in 2007.'
Mr Hale said that if the acquisition of 1 George Street at a purchase price of $1.165 billion is approved and completed, CCT's total asset size will grow to $6.5 billion, ahead of the target of $6 billion by next year.
'Given Singapore's still-strong economic fundamentals and continued healthy office leasing demand, we are confident of exceeding the forecast distribution per unit of 10.04 cents to unitholders in 2008,' he said.
Lynette Leong, chief executive of the manager of the trust, said that there is continuing keen demand by banks and financial institutions for greater space in CCT's quality buildings. CCT's portfolio includes Capital Tower, 6 Battery Road, HSBC Building, Starhub Centre, Robinson Point, Bugis Village, Golden Shoe Car Park and Market Street Car Park.
Grade A and prime office rents averaged $18.65 per square foot (psf) per month and $16 psf per month respectively in Q1 2008, representing increases of 8.7 and 6.7 per cent from the preceding quarter.
'Given the prime quality of CCT's portfolio, we have signed leases above $20 psf per month in Q1 2008,' Ms Leong said. 'Our well-balanced lease expiry profile, together with our pro-active asset management, will enable us to benefit from the tight office market . . . and gain continued rental upside.'
DPU of 2.59 cents is 12.1% above forecast
CAPITACOMMERCIAL Trust (CCT) has announced a first-quarter distributable income of $35.9 million, or 12 per cent higher than forecast. Distribution per unit (DPU) for the three months ended March 31 came to 2.59 cents, better than the 2.11 cents a year ago and 12.1 per cent above forecast.
1 George Street: If its acquisition at a purchase price of $1.165 billion is approved and completed, CCT's total asset size will grow to $6.5 billionNet property income totalled $49.6 million or 8.8 per cent above forecast. 'CapitaCommercial Trust achieved higher rental income as Singapore experienced considerable rental growth in the office market over the past 12 months,' said Richard Hale, chairman of CapitaCommercial Trust Management, which manages the trust. 'This growth, together with our strategy of pro-active asset and prudent capital management, increased the first-quarter 2008 distribution per unit significantly by 22.7 per cent over the same quarter in 2007.'
Mr Hale said that if the acquisition of 1 George Street at a purchase price of $1.165 billion is approved and completed, CCT's total asset size will grow to $6.5 billion, ahead of the target of $6 billion by next year.
'Given Singapore's still-strong economic fundamentals and continued healthy office leasing demand, we are confident of exceeding the forecast distribution per unit of 10.04 cents to unitholders in 2008,' he said.
Lynette Leong, chief executive of the manager of the trust, said that there is continuing keen demand by banks and financial institutions for greater space in CCT's quality buildings. CCT's portfolio includes Capital Tower, 6 Battery Road, HSBC Building, Starhub Centre, Robinson Point, Bugis Village, Golden Shoe Car Park and Market Street Car Park.
Grade A and prime office rents averaged $18.65 per square foot (psf) per month and $16 psf per month respectively in Q1 2008, representing increases of 8.7 and 6.7 per cent from the preceding quarter.
'Given the prime quality of CCT's portfolio, we have signed leases above $20 psf per month in Q1 2008,' Ms Leong said. 'Our well-balanced lease expiry profile, together with our pro-active asset management, will enable us to benefit from the tight office market . . . and gain continued rental upside.'
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