Higher rentals push up prices at some coffee joints
POSTED: 06 Aug 2013 6:08 AM
At least three coffee joints here have recently raised prices, citing rising operational costs, especially rentals.
SINGAPORE: At least three coffee joints here have recently raised prices, citing rising operational costs, especially rentals.
The move comes as the chain operator of S11 coffeeshops increased its drink prices by 10 cents across all 15 outlets at the start of June.
Ya Kun raised prices by 10 to 20 cents starting July 27, citing escalating operating costs leading to a "juncture whereby a price revision is inevitable", said a notice posted at storefronts dated June 26.
A cup of coffee at Ya Kun now costs S$1.60 instead of S$1.50.
The coffee chain's rising operational costs came from "a bit of everything", said Mr Adrin Loi, Executive Chairman of Ya Kun. Rental accounts for the bulk of costs at the chain's 44 Ya Kun outlets, followed by raw material and manpower.
Mr Loi said labour costs have gone up as workers working more than 44 hours a week are paid an overtime rate of 1.5 times their hourly rate, and the Foreign Worker Levy has also increased.
The chain also had to pay its staff higher salaries to remain competitive in a tight labour market. It had previously said it plans to hire more retirees and housewives to fuel its expansion to 100 outlets by 2015.
"Sometimes, we bear the costs … we control the price. But at the end of the day, the worker will be affected. We cannot give them better rewards, and we want to reward our staff who perform well," Mr Loi said.
Old Town White Coffee, which has eight outlets here, is in the middle of a revamp involving renovations and menu changes. TODAY understands that this will translate to an increase in prices, of not more than 50 cents, at four outlets - City Square Mall, JCube, Orchard Cineleisure and Square 2 - that have been upgraded in recent months.
The upgrading for a "fresher and more contemporary ambience" is part of the company's strategy to retain customers and, hence, manage rising costs, said Ms Dawn Liew, General Manager of Kopitiam Asia Pacific, which manages the Old Town outlets in Singapore.
"Rising costs are part and parcel of doing business and this spreads across an array of items. In saying that, rentals are becoming a lot steeper," she said.
The Coffee Bean and Tea Leaf also raised its prices,by 10 or 20 cents, two months ago, but only for food items.
Prices at Starbucks, Wang Cafe, Spinelli Coffee Company and Toast Box remain the same.
-TODAY
- wong chee tat :)
Tuesday, August 6, 2013
Singapore companies rely heavily on estimates: KPMG study
Singapore companies rely heavily on estimates: KPMG study
By Toni Waterman
POSTED: 05 Aug 2013 8:25 PM
KPMG analysed the financial statements of 200 companies on the Singapore Exchange and found that 82 per cent of the total assets on their balance sheets are valued on estimates and some form of human judgement.
SINGAPORE: Eighty-two per cent of the total asset values on a typical balance sheet today are based on estimates, according to a KPMG study.
KPMG analysed the financial statements of 200 companies on the Singapore Exchange (SGX) and found that 82 per cent of the total assets on their balance sheets are valued on estimates and some form of human judgement.
KPMG's head of audit Ong Pang Thye, said: "The problem with having estimates in the books are the issues of comparability and consistency.
"The other issue that we are looking at is whether they are susceptible to human errors and are unintentional, or if they are subject to one form or another of human bias. This could be in the form of the more intentional ones."
The study shows that as little as a one per cent fluctuation in the total asset value can result in a 38 per cent change in net profit and up to a 50 per cent change in comprehensive income.
This means that even slight changes could turn a profit into a loss and vice versa.
Although fair value estimates for financial instruments were a key concern during the global financial crisis, it appears they are less of a concern for companies in Singapore as less than one per cent of total assets on average use unobservable inputs - known as "level three inputs" - and are subjected to level three fair value measurements.
Those who create financial statements said another problem with estimation is consistency.
BW Maritime's group CFO, Nicholas Gleeson, said: "The risk is that the shareholders become a little bit lost.
"They look at two sets of financial statements and think the companies are quite comparable but what they see flowing to the profit and loss in one (statement) is different from what is happening in the other (statement)."
The study shows that no sector is spared from the use of estimates and that some sectors like energy and telcos rely more heavily on estimation then others.
The study looked at 11 industries, including information technology, industrials, healthcare, real estate and energy.
Sam Ong, group senior executive vice president and group deputy CEO of Hyflux, said: "What I want to challenge the profession is that of all this volatility and accuracy that we are trying to derive, we have to make sure that we present it in such a way that is structured and as comparable as possible."
There is no expectation that estimation will stop being a part of financial reporting.
However, the study suggests that a robust process for deriving estimations and auditors with the right skill set to work with those estimates could make them more accurate and consistent.
Of the 200 companies analysed by KPMG, about 58 per cent were classified as small-cap, nine per cent as mid-cap and 33 per cent as large cap.
About 60 per cent of these companies are local and 40 per cent are foreign companies with significant presence in Singapore.
- CNA/fa
- wong chee tat :)
By Toni Waterman
POSTED: 05 Aug 2013 8:25 PM
KPMG analysed the financial statements of 200 companies on the Singapore Exchange and found that 82 per cent of the total assets on their balance sheets are valued on estimates and some form of human judgement.
SINGAPORE: Eighty-two per cent of the total asset values on a typical balance sheet today are based on estimates, according to a KPMG study.
KPMG analysed the financial statements of 200 companies on the Singapore Exchange (SGX) and found that 82 per cent of the total assets on their balance sheets are valued on estimates and some form of human judgement.
KPMG's head of audit Ong Pang Thye, said: "The problem with having estimates in the books are the issues of comparability and consistency.
"The other issue that we are looking at is whether they are susceptible to human errors and are unintentional, or if they are subject to one form or another of human bias. This could be in the form of the more intentional ones."
The study shows that as little as a one per cent fluctuation in the total asset value can result in a 38 per cent change in net profit and up to a 50 per cent change in comprehensive income.
This means that even slight changes could turn a profit into a loss and vice versa.
Although fair value estimates for financial instruments were a key concern during the global financial crisis, it appears they are less of a concern for companies in Singapore as less than one per cent of total assets on average use unobservable inputs - known as "level three inputs" - and are subjected to level three fair value measurements.
Those who create financial statements said another problem with estimation is consistency.
BW Maritime's group CFO, Nicholas Gleeson, said: "The risk is that the shareholders become a little bit lost.
"They look at two sets of financial statements and think the companies are quite comparable but what they see flowing to the profit and loss in one (statement) is different from what is happening in the other (statement)."
The study shows that no sector is spared from the use of estimates and that some sectors like energy and telcos rely more heavily on estimation then others.
The study looked at 11 industries, including information technology, industrials, healthcare, real estate and energy.
Sam Ong, group senior executive vice president and group deputy CEO of Hyflux, said: "What I want to challenge the profession is that of all this volatility and accuracy that we are trying to derive, we have to make sure that we present it in such a way that is structured and as comparable as possible."
There is no expectation that estimation will stop being a part of financial reporting.
However, the study suggests that a robust process for deriving estimations and auditors with the right skill set to work with those estimates could make them more accurate and consistent.
Of the 200 companies analysed by KPMG, about 58 per cent were classified as small-cap, nine per cent as mid-cap and 33 per cent as large cap.
About 60 per cent of these companies are local and 40 per cent are foreign companies with significant presence in Singapore.
- CNA/fa
- wong chee tat :)
Australian central bank cuts rates to new low of 2.5%
Australian central bank cuts rates to new low of 2.5%
POSTED: 06 Aug 2013 1:50 PM
Australia's central bank cut interest rates to a new record low of 2.5 per cent on Tuesday, just weeks ahead of the September 7 national polls.
SYDNEY, New South Wales: Australia's central bank cut interest rates to a new record low of 2.5 per cent Tuesday, underscoring fears of a major economic slowdown shaping up as a key election battleground.
The Reserve Bank of Australia shaved 25 basis points off the official cash rate to lows not seen since the central bank's 1959 establishment, just weeks out from the September 7 national polls.
RBA Governor Glenn Stevens cited recent muted inflation and retail sales data in unveiling the cut, which follows a grim pre-election budget update from the ruling Labor party last week.
"In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment," Stevens said.
The peak in Australia's decade-long Asia-led mining investment boom and slowdown in key market China saw Labor scale back its growth forecasts for 2013/14 to 2.5 per cent and bump up unemployment to 6.25 per cent, compared with 2.75 per cent and 5.75 per cent seen in the May budget.
Stevens singled out unemployment as a concern, noting that it had "edged higher" to 5.7 per cent in June, its highest level in almost four years and just shy of its peak during the global financial crisis.
The cash rate is also lower than it ever was during the global downturn -- it last bottomed out at 3.00 per cent in September 2009.
The latest cut was widely expected by analysts after inflation came in below forecasts for a third successive quarter last month at a muted 0.4 per cent and retail spending was flat in the three months to June.
"The RBA would have hoped lower interest rates would encourage credit growth, but it has remained sluggish," said Capital Economics analyst Daniel Martin.
"Overall, we doubt that policy loosening, even after today's rate cut, will fully offset the slowdown in mining investment," he added.
Australia was among a select few advanced economies to dodge recession during the financial crisis, due to its links with powerhouse Asian economies.
But Prime Minister Kevin Rudd, who is seeking a third term in office for Labor, warned last week A$33.3 billion had been wiped off his spending plans for the next four years due to the mining headwinds.
Both Rudd and conservative opponent Tony Abbott have put economic management at the heart of their election campaigns as Australia faces a major transition to non-mining drivers of growth.
Tuesday's decision is a mixed bag for Labor. While it underscores fears of an economic slowdown seized on by the conservatives as evidence of mismanagement, it also means an easing in cost-of-living pressures for key mortgage-belt voters.
Opposition finance spokesman Joe Hockey said "business and consumer confidence in the United States is in better shape than business and consumer confidence in Australia", with voters worried about rising unemployment.
"This interest rate cut is about a struggling economy under Kevin Rudd," Hockey said. "We are heading in the wrong direction while the rest of the world is heading in the right direction."
Treasurer Chris Bowen said Labor "unapologetically welcomes the interest rate cut", saying it had been made possible by "responsible economic management".
"Under Labor, Australians can rely on the proven economic record that got Australia through the global financial crisis, saw the economy and jobs grow, while making record investments in health, education and infrastructure," said Bowen.
The Australian dollar edged up slightly on the decision, with some investors expecting a more drastic 50-basis-point cut, to 89.55 US cents from 89.23 cents immediately prior.
- CNA/ac
- wong chee tat :)
POSTED: 06 Aug 2013 1:50 PM
Australia's central bank cut interest rates to a new record low of 2.5 per cent on Tuesday, just weeks ahead of the September 7 national polls.
SYDNEY, New South Wales: Australia's central bank cut interest rates to a new record low of 2.5 per cent Tuesday, underscoring fears of a major economic slowdown shaping up as a key election battleground.
The Reserve Bank of Australia shaved 25 basis points off the official cash rate to lows not seen since the central bank's 1959 establishment, just weeks out from the September 7 national polls.
RBA Governor Glenn Stevens cited recent muted inflation and retail sales data in unveiling the cut, which follows a grim pre-election budget update from the ruling Labor party last week.
"In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment," Stevens said.
The peak in Australia's decade-long Asia-led mining investment boom and slowdown in key market China saw Labor scale back its growth forecasts for 2013/14 to 2.5 per cent and bump up unemployment to 6.25 per cent, compared with 2.75 per cent and 5.75 per cent seen in the May budget.
Stevens singled out unemployment as a concern, noting that it had "edged higher" to 5.7 per cent in June, its highest level in almost four years and just shy of its peak during the global financial crisis.
The cash rate is also lower than it ever was during the global downturn -- it last bottomed out at 3.00 per cent in September 2009.
The latest cut was widely expected by analysts after inflation came in below forecasts for a third successive quarter last month at a muted 0.4 per cent and retail spending was flat in the three months to June.
"The RBA would have hoped lower interest rates would encourage credit growth, but it has remained sluggish," said Capital Economics analyst Daniel Martin.
"Overall, we doubt that policy loosening, even after today's rate cut, will fully offset the slowdown in mining investment," he added.
Australia was among a select few advanced economies to dodge recession during the financial crisis, due to its links with powerhouse Asian economies.
But Prime Minister Kevin Rudd, who is seeking a third term in office for Labor, warned last week A$33.3 billion had been wiped off his spending plans for the next four years due to the mining headwinds.
Both Rudd and conservative opponent Tony Abbott have put economic management at the heart of their election campaigns as Australia faces a major transition to non-mining drivers of growth.
Tuesday's decision is a mixed bag for Labor. While it underscores fears of an economic slowdown seized on by the conservatives as evidence of mismanagement, it also means an easing in cost-of-living pressures for key mortgage-belt voters.
Opposition finance spokesman Joe Hockey said "business and consumer confidence in the United States is in better shape than business and consumer confidence in Australia", with voters worried about rising unemployment.
"This interest rate cut is about a struggling economy under Kevin Rudd," Hockey said. "We are heading in the wrong direction while the rest of the world is heading in the right direction."
Treasurer Chris Bowen said Labor "unapologetically welcomes the interest rate cut", saying it had been made possible by "responsible economic management".
"Under Labor, Australians can rely on the proven economic record that got Australia through the global financial crisis, saw the economy and jobs grow, while making record investments in health, education and infrastructure," said Bowen.
The Australian dollar edged up slightly on the decision, with some investors expecting a more drastic 50-basis-point cut, to 89.55 US cents from 89.23 cents immediately prior.
- CNA/ac
- wong chee tat :)
Abbott products in Singapore not impacted by milk scandal
Abbott products in Singapore not impacted by milk scandal
POSTED: 06 Aug 2013 6:01 PM
Abbott Singapore has issued a statement saying that its products here are not manufactured by Fonterra.
SINGAPORE: Abbott Singapore has issued a statement saying that its products here are not manufactured by Fonterra.
It has assured customers that its formulas are safe to consume.
Anyone with queries can direct them to the Abbott Nutrition Careline at 6278 6220.
The public can also write in to family.sg@abbott.com.
- CNA/fa
- wong chee tat :)
POSTED: 06 Aug 2013 6:01 PM
Abbott Singapore has issued a statement saying that its products here are not manufactured by Fonterra.
SINGAPORE: Abbott Singapore has issued a statement saying that its products here are not manufactured by Fonterra.
It has assured customers that its formulas are safe to consume.
Anyone with queries can direct them to the Abbott Nutrition Careline at 6278 6220.
The public can also write in to family.sg@abbott.com.
- CNA/fa
- wong chee tat :)
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