Semicon industry likely to boom: analysts
By Rachel Kelly | Posted: 07 February 2011 1810 hrs
SINGAPORE: With a number of new wireless gadgets expected to be launched, analysts say the semiconductor industry could witness a boom in production and hiring in 2011.
Computer memory prices have been more than halved, between January 2010 and last month.
As computer makers begin to replenish stocks of components, a recovery in prices is now under way -- and that's showing up on stock markets.
Shares of South Korea's Hynix have gone up 24 per cent this year, while those of Japan's Toshiba have risen 18 per cent.
The chipmaking industry is putting last year's slump behind it.
According to a global survey of semiconductor executives by KPMG, 78 per cent expect revenues to grow by more than five per cent this year.
And an anticipated revival in PC demand is not the only source of excitement in the semiconductor industry.
It is expecting bigger gains from sales of premium chips used in smartphones, tablets and 3D TVs.
Chipmakers are looking to build new capacities to make the most of this demand growth.
Frost & Sullivan program manager, Asia Pacific Tim Chuah said: "So these are new markets or untapped markets that have been created, that will really push demand beyond your typical replacement cycles and that's smart phones.
"Then you get to your 3D Tvs (which) are new segments being created, that will drive demand in 2011.
"If you look at it from the supply side as well, there has been quite a tight supply market in 2010 because of shortage in capacity.
"I think manufacturers have been more aware of this glut in supply that has happened recently that has caused price erosion. They have been aware of this and they have not expanded supply as much as they would want to.
"So in 2011, I think a lot of them will be expanding as well.
"If you look at Global Foundries which bought over Chartered Semiconductor, they are going to spend $6 billion in 2011; TSMC is going to spend almost $7 billion in fab expansion -- so this sentiment that is happening in 2011 is something that really reflects actual demand.
"Otherwise, I don't think these companies would want to spend so much on expansion".
According to the KPMG survey, 29 per cent of global semiconductor firms predict workforce to grow more than five per cent in 2011.
With expansion comes the search for the right manufacturing location.
IDC Manufacturing Insights director Christopher Holmes said: "One of the things I'm hearing a lot of discussion (on) is the move to the next low-cost country -- where is it, what is it going to be.
"We are already seeing more and more factories moving further inland in China; we are starting to see the growth of Vietnam as a potential new low-cost centre and we are even starting to hear conversations about moving to Africa, Middle East - potential new low cost centres".
According to market research firm IHS iSuppli, sales of chips used in tablets may jump a staggering nine-fold this year.
Fitch Ratings has a stable outlook on the Asia-Pacific memory chip industry in 2011.
However, the ratings agency in a recent report said that overall industry revenue growth and profitability may come under pressure compared with 2010 due to oversupply and resultant falls in memory prices.
In a recent release by Fitch Ratings, Alvin Lim, associate director in Fitch's Asia Pacific Telecom Media and Technology ratings team, noted that "memory makers in Fitch's rating universe will be able to retain sound credit profiles in 2011 despite the likely suppression of profitability.
"The potential negative impact from a continued decline in memory prices will be well mitigated by these companies' strong market positions, efficient cost structures enabled by technology leadership, and robust liquidity".
Memory makers in Fitch's current rating universe include Samsung Electronics Co Ltd, Hynix Semiconductor Inc, and Toshiba Corporation.
-CNA/wk
- wong chee tat :)
Monday, February 7, 2011
Dining, Entertainment top spending priority for S'pore consumers
Dining, Entertainment top spending priority for S'pore consumers
By Mustafa Shafawi | Posted: 07 February 2011 1153 hrs
SINGAPORE: Consumers in Singapore are living up to their food-lovers reputation.
They continue to make Dining and Entertainment their top spending priority for the next six months, according to the MasterCard Survey on Consumer Purchasing Priorities.
The survey found that 74 per cent of those polled in Singapore said they would spend on dining and entertainment in the next six months, the highest indicated level since the survey began, representing a growth of four points from six months ago.
MasterCard said Dining and Entertainment has topped Singaporeans' list of purchasing priorities for three years running.
Meanwhile, Consumer Electronics ties with Fashion & Accessories in second place at 58 per cent, with International Personal Air Travel placing third on Singaporeans' purchasing priorities at 45 per cent.
The survey also shows that 58 per cent of consumers in Singapore plan to maintain the same level of discretionary spending in the next six months, a slight dip from 60 per cent six months ago.
19 per cent of Singaporeans intend to increase their spending, compared to 16 per cent six months ago and 23 per cent are planning to spend less, down one percentage point from the second half of last year.
Some 400 Singapore consumers were polled for the survey.
- CNA/fa
- wong chee tat :)
By Mustafa Shafawi | Posted: 07 February 2011 1153 hrs
SINGAPORE: Consumers in Singapore are living up to their food-lovers reputation.
They continue to make Dining and Entertainment their top spending priority for the next six months, according to the MasterCard Survey on Consumer Purchasing Priorities.
The survey found that 74 per cent of those polled in Singapore said they would spend on dining and entertainment in the next six months, the highest indicated level since the survey began, representing a growth of four points from six months ago.
MasterCard said Dining and Entertainment has topped Singaporeans' list of purchasing priorities for three years running.
Meanwhile, Consumer Electronics ties with Fashion & Accessories in second place at 58 per cent, with International Personal Air Travel placing third on Singaporeans' purchasing priorities at 45 per cent.
The survey also shows that 58 per cent of consumers in Singapore plan to maintain the same level of discretionary spending in the next six months, a slight dip from 60 per cent six months ago.
19 per cent of Singaporeans intend to increase their spending, compared to 16 per cent six months ago and 23 per cent are planning to spend less, down one percentage point from the second half of last year.
Some 400 Singapore consumers were polled for the survey.
- CNA/fa
- wong chee tat :)
Demand drops for latest BTO projects
Demand drops for latest BTO projects
By Mustafa Shafawi | Posted: 07 February 2011 1035 hrs
SINGAPORE: The latest three Build-To-Order (BTO) projects by the Housing Board Development in Bukit Batok and Yishun are not seeing the same level of interest as the previous project in Punggol.
At the latest available update, the three developments in Yishun and Bukit Batok drew about 1.99 applicants for each unit offered.
In contrast, the Punggol Topaz BTO project launched in December had nearly seven applicants for each unit offered.
The Golden Daisy BTO project in Bukit Batok, which comprises 180 studio apartments, had three applicants for each unit.
Studio apartments are only available to those aged 55 and above and have elderly-friendly features such as support grab bars and ramps.
The two other projects are Orchid Spring and Vista Spring in Yishun, offering 1548 units.
Vista Spring is the more popular of the two BTO projects in Yishun.
There were more than two applicants for each of the 276 five-room units.
The other BTO project in Yishun, Orchid Spring, had about 1.5 applicants for each unit.
Five-room flats proved to be more popular, with 2.5 applications for each unit offered.
In contrast, the 192 two-room units received only 124 applications, or 0.7 applications per unit.
Market watchers said launching the projects over the Lunar New Year period could have been the reason for the poorer response as property activity usually slows down during this period.
Flat buyers may also be waiting for upcoming launches.
ERA key executive officer Eugene Lim said: "I would suspect that many of the first-time buyers are actually waiting on the wings for the DBSS (Design, Build and Sell Scheme) site to launch, because for DBSS you can expect condo-style finishes and fittings as well as layout".
Mr Lim added that DBSS flat buyers paid only a slightly higher price than a BTO flat.
The DBSS project is expected to be launched in the first half of this year. Application closes at midnight.
-CNA/fa/wk
- wong chee tat :)
By Mustafa Shafawi | Posted: 07 February 2011 1035 hrs
SINGAPORE: The latest three Build-To-Order (BTO) projects by the Housing Board Development in Bukit Batok and Yishun are not seeing the same level of interest as the previous project in Punggol.
At the latest available update, the three developments in Yishun and Bukit Batok drew about 1.99 applicants for each unit offered.
In contrast, the Punggol Topaz BTO project launched in December had nearly seven applicants for each unit offered.
The Golden Daisy BTO project in Bukit Batok, which comprises 180 studio apartments, had three applicants for each unit.
Studio apartments are only available to those aged 55 and above and have elderly-friendly features such as support grab bars and ramps.
The two other projects are Orchid Spring and Vista Spring in Yishun, offering 1548 units.
Vista Spring is the more popular of the two BTO projects in Yishun.
There were more than two applicants for each of the 276 five-room units.
The other BTO project in Yishun, Orchid Spring, had about 1.5 applicants for each unit.
Five-room flats proved to be more popular, with 2.5 applications for each unit offered.
In contrast, the 192 two-room units received only 124 applications, or 0.7 applications per unit.
Market watchers said launching the projects over the Lunar New Year period could have been the reason for the poorer response as property activity usually slows down during this period.
Flat buyers may also be waiting for upcoming launches.
ERA key executive officer Eugene Lim said: "I would suspect that many of the first-time buyers are actually waiting on the wings for the DBSS (Design, Build and Sell Scheme) site to launch, because for DBSS you can expect condo-style finishes and fittings as well as layout".
Mr Lim added that DBSS flat buyers paid only a slightly higher price than a BTO flat.
The DBSS project is expected to be launched in the first half of this year. Application closes at midnight.
-CNA/fa/wk
- wong chee tat :)
No big bonuses for bankers this year: HR experts
No big bonuses for bankers this year: HR experts
By Jo-ann Huang | Posted: 07 February 2011 1917 hrs
SINGAPORE: Banks and brokerage firms may be bouncing back from hard times, but their bonus payouts will remain flat for this year.
This is according to human resource experts, who said that bonuses in the financial sector are still under public scrutiny.
During the recent financial crisis, some financial institutions in the US and Europe drew controversy for their large bonus payouts, despite taking bailouts from their respective monetary authorities.
Wall Street bank Goldman Sachs said it would pay US$11 billion in bonuses in late 2008, despite receiving a lifeline US$9.9 billion from the US government.
Financial institutions are also increasing their base salaries, to balance out the thinner bonuses, said human resource experts.
This bonus season, even the top performing financial workers can forget about a thicker payout, compared to that of last year.
Those who have put in an average or poor performance might see their bonuses halved.
This is despite a strong rebound in the financial sector after a heavy beatdown during the recent financial crisis.
Robert Walters associate director (Financial Services & Legal) Neil Dyball said: "I think that the banking industry had a very good year last year -- there was lots of growth, additional hires so the costs base went up quickly.
"I think the revenues tailed off in the second half of the year, and therefore banks did not meet some of their expectations or budgets they thought they may do.
"We expect people within the front office this year to have a reasonable year, but that will be a flat bonus compared to last year or a slight increase.
"Those in the middle and the back office probably would see a slide backwards and therefore the high performers will receive their bonus accordingly, and the low or average performers would receive a lesser bonus than what they would have received in the past".
Financial institutions typically have a performance-based bonus policy, on top of their base salaries.
According to human resource experts, financial workers in the middle or back office usually receive a three-to-six month performance bonus, while front office staff receive a percentage of their base salary as a bonus.
Staff at American or European banks are also likely to see limited bonuses, due to wage restrictions from authorities.
Ambition Singapore managing director Paul Endacott said: "There's a lot of scrutiny around bonuses right now. There's a lot of scrutiny around pay generally within the banks.
"There's a concern from the banks that if they restrict the bonuses that they can pay, they may actually lose talent and find that people will go to other banks that pay higher bonuses.
To help retain staff, some banks are increasing base salaries by 10 to 15 per cent.
But workers from other sectors may see only a marginal salary increase this year.
Mr Endacott said: "For the talented employees, the employees that people want to keep, then you might find that some of them might get increments of six, eight, or 10 per cent.
"But they would be the exception rather than the rule. But for the average employee it would be about four to six per cent".
Experts said the four to six per cent salary increment this year should help ease inflation worries.
The Monetary Authority of Singapore said last month that inflation should remain high, going forward.
Inflation in December last year hit a two-year high of 4.6 per cent.
-CNA/wk
- wong chee tat :)
By Jo-ann Huang | Posted: 07 February 2011 1917 hrs
SINGAPORE: Banks and brokerage firms may be bouncing back from hard times, but their bonus payouts will remain flat for this year.
This is according to human resource experts, who said that bonuses in the financial sector are still under public scrutiny.
During the recent financial crisis, some financial institutions in the US and Europe drew controversy for their large bonus payouts, despite taking bailouts from their respective monetary authorities.
Wall Street bank Goldman Sachs said it would pay US$11 billion in bonuses in late 2008, despite receiving a lifeline US$9.9 billion from the US government.
Financial institutions are also increasing their base salaries, to balance out the thinner bonuses, said human resource experts.
This bonus season, even the top performing financial workers can forget about a thicker payout, compared to that of last year.
Those who have put in an average or poor performance might see their bonuses halved.
This is despite a strong rebound in the financial sector after a heavy beatdown during the recent financial crisis.
Robert Walters associate director (Financial Services & Legal) Neil Dyball said: "I think that the banking industry had a very good year last year -- there was lots of growth, additional hires so the costs base went up quickly.
"I think the revenues tailed off in the second half of the year, and therefore banks did not meet some of their expectations or budgets they thought they may do.
"We expect people within the front office this year to have a reasonable year, but that will be a flat bonus compared to last year or a slight increase.
"Those in the middle and the back office probably would see a slide backwards and therefore the high performers will receive their bonus accordingly, and the low or average performers would receive a lesser bonus than what they would have received in the past".
Financial institutions typically have a performance-based bonus policy, on top of their base salaries.
According to human resource experts, financial workers in the middle or back office usually receive a three-to-six month performance bonus, while front office staff receive a percentage of their base salary as a bonus.
Staff at American or European banks are also likely to see limited bonuses, due to wage restrictions from authorities.
Ambition Singapore managing director Paul Endacott said: "There's a lot of scrutiny around bonuses right now. There's a lot of scrutiny around pay generally within the banks.
"There's a concern from the banks that if they restrict the bonuses that they can pay, they may actually lose talent and find that people will go to other banks that pay higher bonuses.
To help retain staff, some banks are increasing base salaries by 10 to 15 per cent.
But workers from other sectors may see only a marginal salary increase this year.
Mr Endacott said: "For the talented employees, the employees that people want to keep, then you might find that some of them might get increments of six, eight, or 10 per cent.
"But they would be the exception rather than the rule. But for the average employee it would be about four to six per cent".
Experts said the four to six per cent salary increment this year should help ease inflation worries.
The Monetary Authority of Singapore said last month that inflation should remain high, going forward.
Inflation in December last year hit a two-year high of 4.6 per cent.
-CNA/wk
- wong chee tat :)
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