Private home sales fall to three-month low
By Jonathan Peeris and Jo-ann Huang | Posted: 15 February 2011 1421 hrs
SINGAPORE: Sales of private residential property in Singapore fell to a three-month low in January after the government announced stringent measures to curb speculative activity, including a 16 per cent seller's stamp duty for sales in the first year.
Data released on Tuesday by the Urban Redevelopment Authority (URA) showed that 1,189 private homes were sold last month.
This is an 10.7 per cent month-on-month drop from the 1,332 units sold in the previous month. It is also the lowest monthly sales figure since October.
Analysts said the decline was expected as the new cooling measures have injected some caution into the property market.
"The immediate reaction then was that perhaps property prices might take a slight dip, so why not wait for a while and see how the market reacts. If the prices do come down, then they should invest when the market is cheaper," said Ku Swee Yong, CEO of International Property Advisor.
But mass market homes in the suburban areas are still the most popular.
Suburban properties chalked up the most sales with 588 units sold, while 200 units in the central area were sold last month.
As for city fringe areas, 401 units were sold.
In December, some suburban homes saw record-high prices of S$1,500 per square foot.
But the number of homes sold at such price levels fell 13 per cent last month.
"It does indicate that the cooling measures in January have some impact already because these people who are buying in the mass market category are probably now a little bit circumspect and re-examining their investment strategy," said Ku.
Despite the cooling measures, analysts said demand will remain strong going forward.
They expect home sales to hold steady in the next two to three months.
"Even though February only has 28 days with Chinese New Year for the first two weeks, close to 500 units were being sold. With another two weeks to go, more launches are expected. I do expect sales for February to exceed 1,000 units, and March and April will be healthy again," said Mohamed Ismail, CEO of PropNex.
Analysts said the full impact of the cooling measures will only be felt after March this year.
A total of 1,238 units were launched in January.
- CNA/fa/ls
- wong chee tat :)
Friday, February 18, 2011
Gold demand reaches 10-year high
Gold demand reaches 10-year high
Posted: 17 February 2011 2135 hrs
SINGAPORE : The demand for gold is expected to get a further boost this year after hitting a 10-year high in 2010, according to the World Gold Council.
Prices of the yellow metal surged to a record US$1,421 an ounce in November last year on strong demand from jewellery makers and electronic-component manufacturers.
Investment demand for gold also rose.
For the first time in 21 years, central banks shifted from being gold sellers to gold buyers in 2010, removing a significant source of supply to the market which drove up prices.
Gold has become an increasingly popular asset as central banks and investors look to hedge against an anticipated rise in inflation.
Monetary easing in the US is also adding fuel to rising gold prices.
According to the World Gold Council, gold demand for the year reached a 10-year high, with annual demand of 3,812 tonnes worth approximately US$150 billion.
And while the yellow metal is largely seen as a physical investment in Asia, some analysts said that the trend might change.
Now there is the option of a more liquid from of investing, through exchange-traded funds (ETFs), which allow investors to buy or sell the commodity like shares in a company.
Albert Cheng, managing director of World Gold Council (Far East) Pte Ltd, said: "I think we see these gold ETFs getting popular in Asia. And I think investor education is key to converting them to products which is a Western phenomenon...but because of convenience, Asian investors start to get into this product category."
- CNA/ms
- wong chee tat :)
Posted: 17 February 2011 2135 hrs
SINGAPORE : The demand for gold is expected to get a further boost this year after hitting a 10-year high in 2010, according to the World Gold Council.
Prices of the yellow metal surged to a record US$1,421 an ounce in November last year on strong demand from jewellery makers and electronic-component manufacturers.
Investment demand for gold also rose.
For the first time in 21 years, central banks shifted from being gold sellers to gold buyers in 2010, removing a significant source of supply to the market which drove up prices.
Gold has become an increasingly popular asset as central banks and investors look to hedge against an anticipated rise in inflation.
Monetary easing in the US is also adding fuel to rising gold prices.
According to the World Gold Council, gold demand for the year reached a 10-year high, with annual demand of 3,812 tonnes worth approximately US$150 billion.
And while the yellow metal is largely seen as a physical investment in Asia, some analysts said that the trend might change.
Now there is the option of a more liquid from of investing, through exchange-traded funds (ETFs), which allow investors to buy or sell the commodity like shares in a company.
Albert Cheng, managing director of World Gold Council (Far East) Pte Ltd, said: "I think we see these gold ETFs getting popular in Asia. And I think investor education is key to converting them to products which is a Western phenomenon...but because of convenience, Asian investors start to get into this product category."
- CNA/ms
- wong chee tat :)
Honda to recall nearly 700,000 vehicles globally
Honda to recall nearly 700,000 vehicles globally
Posted: 17 February 2011 1541 hrs
TOKYO: Japanese automaker Honda on Thursday said it was recalling 693,497 vehicles worldwide due to defective parts that could stall the engine and cause problems restarting in certain models.
Honda spokeswoman Natsuno Asanuma said the recall would affect models of its Freed compact minivan, Fit compact car and City sedan, including around 170,000 of the Freed and Fit in Japan.
The recall affects over 220,000 units in Asia, mainly the Southeast Asian area, and some 156,000 in China, she said. No accidents associated with the defect have been reported, she added.
Defective spring parts may deteriorate over time resulting in abnormal engine sounds and in the worst case cause stalling and problems restarting.
The latest action follows a recall in December of about 1.35 million Fit sub-compact cars, including 621,000 overseas, to repair a headlight defect.
Honda Motor's net profit for the three months ended December fell nearly 40 percent year-on-year due to the impact of the strong yen and sliding Japanese demand, but in January it lifted its full-year profit forecast.
Its performance overseas in emerging markets and the United States helped Honda lift its full year profit forecast to 530 billion yen, up 97.5 per cent year-on-year, compared with a 500 billion yen forecast in October.
Honda shares closed up 1.09 per cent in Tokyo ahead of the recall announcement.
-AFP/jl
- wong chee tat :)
Posted: 17 February 2011 1541 hrs
TOKYO: Japanese automaker Honda on Thursday said it was recalling 693,497 vehicles worldwide due to defective parts that could stall the engine and cause problems restarting in certain models.
Honda spokeswoman Natsuno Asanuma said the recall would affect models of its Freed compact minivan, Fit compact car and City sedan, including around 170,000 of the Freed and Fit in Japan.
The recall affects over 220,000 units in Asia, mainly the Southeast Asian area, and some 156,000 in China, she said. No accidents associated with the defect have been reported, she added.
Defective spring parts may deteriorate over time resulting in abnormal engine sounds and in the worst case cause stalling and problems restarting.
The latest action follows a recall in December of about 1.35 million Fit sub-compact cars, including 621,000 overseas, to repair a headlight defect.
Honda Motor's net profit for the three months ended December fell nearly 40 percent year-on-year due to the impact of the strong yen and sliding Japanese demand, but in January it lifted its full-year profit forecast.
Its performance overseas in emerging markets and the United States helped Honda lift its full year profit forecast to 530 billion yen, up 97.5 per cent year-on-year, compared with a 500 billion yen forecast in October.
Honda shares closed up 1.09 per cent in Tokyo ahead of the recall announcement.
-AFP/jl
- wong chee tat :)
Budget 2011: Deficit of S$2.2b expected for FY2011
Budget 2011: Deficit of S$2.2b expected for FY2011
By Chris Howells | Posted: 18 February 2011 1800 hrs
SINGAPORE: The Singapore government said it expects a budget deficit of S$2.2 billion for FY2011, or 0.7 per cent of GDP.
This is after factoring in the various tax measures and special transfers in this year's budget.
This is smaller than the FY2010 deficit of 0.8 per cent of GDP.
Finance Minister Tharman Shanmugaratnam said in his budget speech the overall budget balance for FY2011 is projected to be a slight surplus of S$100 million.
This is after taking into account Net Investment Returns Contribution (NIRC) of S$7.8 billion and the amounts the government is setting aside for endowment and trust funds to serve economic and social objectives.
Mr Tharman said the injections into the funds will alleviate pressure on future government budgets to fund the country's long-term needs.
-CNA/wk
- wong chee tat :)
By Chris Howells | Posted: 18 February 2011 1800 hrs
SINGAPORE: The Singapore government said it expects a budget deficit of S$2.2 billion for FY2011, or 0.7 per cent of GDP.
This is after factoring in the various tax measures and special transfers in this year's budget.
This is smaller than the FY2010 deficit of 0.8 per cent of GDP.
Finance Minister Tharman Shanmugaratnam said in his budget speech the overall budget balance for FY2011 is projected to be a slight surplus of S$100 million.
This is after taking into account Net Investment Returns Contribution (NIRC) of S$7.8 billion and the amounts the government is setting aside for endowment and trust funds to serve economic and social objectives.
Mr Tharman said the injections into the funds will alleviate pressure on future government budgets to fund the country's long-term needs.
-CNA/wk
- wong chee tat :)
Gardens by the Bay reaches first milestone
Gardens by the Bay reaches first milestone
By Joanne Chan | Posted: 15 February 2011 2245 hrs
SINGAPORE: Singapore's latest national project, Gardens by the Bay, overcame funding difficulties to reach its first milestone on Tuesday with the capping of one of its two giant conservatories, the Flower Dome.
The project faced rising construction costs when work started in 2007, leading overall cost to increase by more than 10 percent to over S$1 billion.
But with more public and private funding and the use of cost-efficient technology, the project was able to take off, said National Development Minister Mah Bow Tan.
"We managed to do some value engineering, bring the cost down slightly and then ask for more funds. And I think the Finance Ministry was very understanding and managed to give us the funds. And we're also of course going for corporate sponsorships," he said.
For example, the Kingfisher Lake - one of two main lakes in Gardens by the Bay - was sponsored a million dollars by Japanese company Kikkoman last year.
Securing the final glass panel of the Flower Dome conservatory on Tuesday, Mr Mah described the "Capping-Up" ceremony as a milestone in a "long journey".
He said that the Flower Dome, along with the second conservatory the Cloud Forest, are not just "architectural icons" but an "amalgamation of architectural, environmental engineering and horticultural excellence."
The Flower Dome will feature Mediterranean-type plants, while the Cloud Forest, which is under construction, will mirror tropical high elevation regions like those in South America and Mount Kinabalu in Sabah.
The two conservatories were designed with environmental sustainability in mind, applying cutting-edge technologies that provide energy-efficient solutions in cooling.
The facade of the 1.2-hectare Flower Dome is made up of 3,300 special glass panels, which let in the sunlight while keeping the heat out. This allows the conservatory to mimic the cool-dry climate of the Mediterranean.
To ensure energy efficiency, only areas occupied by plants and visitors will be cooled.
The conservatory is divided into smaller gardens featuring plants such as poppy flowers from California and Cat's Paw plants from Australia. One of the gardens - the Flower Field - will have changing displays including tulips and lavender.
The conservatory will also have an event space which can be rented out for weddings and other functions. There will also be two restaurants within the conservatory - one serving Mediterranean cuisine and the other, Chinese.
The Flower Dome is part of Bay South - the first of three gardens in Gardens by the Bay.
Construction for Bay South is expected to be completed by November, and opened to the public in June next year.
Explaining the time difference, Mr Mah said the plants need time to grow.
NParks says previews of Bay South will be arranged for organised groups from February next year.
It adds that the preview period will help the Gardens ease into its operations and allow the public to provide feedback.
The public will also get a sneak peek of the Flower Dome in November this year, during the World Orchid Conference.
- CNA/ir
- wong chee tat :)
By Joanne Chan | Posted: 15 February 2011 2245 hrs
SINGAPORE: Singapore's latest national project, Gardens by the Bay, overcame funding difficulties to reach its first milestone on Tuesday with the capping of one of its two giant conservatories, the Flower Dome.
The project faced rising construction costs when work started in 2007, leading overall cost to increase by more than 10 percent to over S$1 billion.
But with more public and private funding and the use of cost-efficient technology, the project was able to take off, said National Development Minister Mah Bow Tan.
"We managed to do some value engineering, bring the cost down slightly and then ask for more funds. And I think the Finance Ministry was very understanding and managed to give us the funds. And we're also of course going for corporate sponsorships," he said.
For example, the Kingfisher Lake - one of two main lakes in Gardens by the Bay - was sponsored a million dollars by Japanese company Kikkoman last year.
Securing the final glass panel of the Flower Dome conservatory on Tuesday, Mr Mah described the "Capping-Up" ceremony as a milestone in a "long journey".
He said that the Flower Dome, along with the second conservatory the Cloud Forest, are not just "architectural icons" but an "amalgamation of architectural, environmental engineering and horticultural excellence."
The Flower Dome will feature Mediterranean-type plants, while the Cloud Forest, which is under construction, will mirror tropical high elevation regions like those in South America and Mount Kinabalu in Sabah.
The two conservatories were designed with environmental sustainability in mind, applying cutting-edge technologies that provide energy-efficient solutions in cooling.
The facade of the 1.2-hectare Flower Dome is made up of 3,300 special glass panels, which let in the sunlight while keeping the heat out. This allows the conservatory to mimic the cool-dry climate of the Mediterranean.
To ensure energy efficiency, only areas occupied by plants and visitors will be cooled.
The conservatory is divided into smaller gardens featuring plants such as poppy flowers from California and Cat's Paw plants from Australia. One of the gardens - the Flower Field - will have changing displays including tulips and lavender.
The conservatory will also have an event space which can be rented out for weddings and other functions. There will also be two restaurants within the conservatory - one serving Mediterranean cuisine and the other, Chinese.
The Flower Dome is part of Bay South - the first of three gardens in Gardens by the Bay.
Construction for Bay South is expected to be completed by November, and opened to the public in June next year.
Explaining the time difference, Mr Mah said the plants need time to grow.
NParks says previews of Bay South will be arranged for organised groups from February next year.
It adds that the preview period will help the Gardens ease into its operations and allow the public to provide feedback.
The public will also get a sneak peek of the Flower Dome in November this year, during the World Orchid Conference.
- CNA/ir
- wong chee tat :)
Taiwan to allow China LCD investment: report
Taiwan to allow China LCD investment: report
Posted: 14 February 2011 1355 hrs
TAIPEI: Chinese firms will be allowed to own up to a fifth of Taiwan's flat-screen makers as the island further eases its controls on investments from the mainland, local media reported Monday.
In yet another sign of fast warming ties with Beijing, Taiwan's economic ministry last month completed its screening of a proposal for opening up to Chinese investors, the Commercial Times said.
Under the proposal, which must get the cabinet's final approval, Chinese home appliance manufacturers will be permitted to hold up to 20 per cent of Taiwan's LCD (liquid crystal display) makers, it said.
But the investments will not be permitted if the transactions make Chinese investors the single biggest shareholders, the report added.
The measures will help Taiwanese flat-screen makers forge alliances with Chinese home appliance firms and help them tap China's vast market, it said, explaining why the government has decided to lift its ban.
A spokesman for Taiwan's economic ministry declined to comment on the report when reached by AFP.
Taiwan in June 2009 partially lifted a decades-old ban on investment in the island by Chinese companies or individuals amid rapidly improving ties following the election of Beijing-friendly Ma Ying-jeou as president in 2008.
Despite the opening, accumulated Chinese investment streams to Taiwan are less than one thousandth the money going in the other direction.
As of December, Chinese firms had made 102 investments on the island worth $131.83 million, Taiwan's Investment Commission said.
Meanwhile, Taiwan businesses have funnelled an estimated $150 billion to the mainland since the government eased controls on China-bound investment in 1991, local media have said.
China still regards Taiwan as part of its territory awaiting reunification although the island has governed itself since 1949 at the end of a civil war.
-AFP/wk
- wong chee tat :)
Posted: 14 February 2011 1355 hrs
TAIPEI: Chinese firms will be allowed to own up to a fifth of Taiwan's flat-screen makers as the island further eases its controls on investments from the mainland, local media reported Monday.
In yet another sign of fast warming ties with Beijing, Taiwan's economic ministry last month completed its screening of a proposal for opening up to Chinese investors, the Commercial Times said.
Under the proposal, which must get the cabinet's final approval, Chinese home appliance manufacturers will be permitted to hold up to 20 per cent of Taiwan's LCD (liquid crystal display) makers, it said.
But the investments will not be permitted if the transactions make Chinese investors the single biggest shareholders, the report added.
The measures will help Taiwanese flat-screen makers forge alliances with Chinese home appliance firms and help them tap China's vast market, it said, explaining why the government has decided to lift its ban.
A spokesman for Taiwan's economic ministry declined to comment on the report when reached by AFP.
Taiwan in June 2009 partially lifted a decades-old ban on investment in the island by Chinese companies or individuals amid rapidly improving ties following the election of Beijing-friendly Ma Ying-jeou as president in 2008.
Despite the opening, accumulated Chinese investment streams to Taiwan are less than one thousandth the money going in the other direction.
As of December, Chinese firms had made 102 investments on the island worth $131.83 million, Taiwan's Investment Commission said.
Meanwhile, Taiwan businesses have funnelled an estimated $150 billion to the mainland since the government eased controls on China-bound investment in 1991, local media have said.
China still regards Taiwan as part of its territory awaiting reunification although the island has governed itself since 1949 at the end of a civil war.
-AFP/wk
- wong chee tat :)
Rise in young credit card defaulters to be monitored: SM Goh
Rise in young credit card defaulters to be monitored: SM Goh
By Mustafa Shafawi | Posted: 14 February 2011 1849 hrs
SINGAPORE: Senior Minister Goh Chok Tong said the rising share of credit card defaulters among young adults in Singapore should be closely monitored.
Mr Goh, who is also chairman of the Monetary Authority of Singapore (MAS), said they accounted for 13.4 per cent of credit card defaulters in November last year, compared to 9.4 per cent in January 2008.
Young adults aged 21 to 29 have also contributed to the increase in "frequent revolvers."
Mr Goh said MAS has in place several measures to mitigate the risks of over-borrowing by individuals.
For example, MAS has set the minimum annual income requirement for credit cards at S$30,000 to ensure that credit cards are only issued to individuals who have sufficient financial means to handle them.
The maximum credit limit, including any other unsecured credit facilities that a financial institution can give to such individuals is limited to four times his monthly income. Financial institutions must conduct comprehensive credit bureau checks before granting individuals credit cards.
They supplement the rigorous credit assessments that MAS expects financial institutions to conduct before they grant credit to customers.
Mr Goh was replying to questions in Parliament from MPs who were concerned about credit card debts.
-CNA/ac
- wong chee tat :)
By Mustafa Shafawi | Posted: 14 February 2011 1849 hrs
SINGAPORE: Senior Minister Goh Chok Tong said the rising share of credit card defaulters among young adults in Singapore should be closely monitored.
Mr Goh, who is also chairman of the Monetary Authority of Singapore (MAS), said they accounted for 13.4 per cent of credit card defaulters in November last year, compared to 9.4 per cent in January 2008.
Young adults aged 21 to 29 have also contributed to the increase in "frequent revolvers."
Mr Goh said MAS has in place several measures to mitigate the risks of over-borrowing by individuals.
For example, MAS has set the minimum annual income requirement for credit cards at S$30,000 to ensure that credit cards are only issued to individuals who have sufficient financial means to handle them.
The maximum credit limit, including any other unsecured credit facilities that a financial institution can give to such individuals is limited to four times his monthly income. Financial institutions must conduct comprehensive credit bureau checks before granting individuals credit cards.
They supplement the rigorous credit assessments that MAS expects financial institutions to conduct before they grant credit to customers.
Mr Goh was replying to questions in Parliament from MPs who were concerned about credit card debts.
-CNA/ac
- wong chee tat :)
HDB abolishes sibling scheme
HDB abolishes sibling scheme
By Satish Cheney | Posted: 14 February 2011 1900 hrs
SINGAPORE: Unmarried Singaporean and Permanent Resident (PR) siblings whose parents live overseas can no longer buy a new or resale HDB flat, from Monday.
The government said they can either rent a room or a small flat from the open market.
It said with the liberalisation of the subletting market for HDB flats over the years, the Citizen-Singapore PR sibling scheme, introduced since 1990, is now no longer necessary.
Previously, the government allowed unmarried Singaporean siblings to buy a new or resale HDB flat, while PR siblings could buy a resale flat on a case-by-case basis with certain conditions attached.
Senior Minister of State for National Development & Education Grace Fu said: "As HDB has been very stringent in assessing applications for this scheme, the number of such cases is small.
"There are about 300 cases each year, or less than one per cent of total flat transactions".
-CNA/wk
- wong chee tat :)
By Satish Cheney | Posted: 14 February 2011 1900 hrs
SINGAPORE: Unmarried Singaporean and Permanent Resident (PR) siblings whose parents live overseas can no longer buy a new or resale HDB flat, from Monday.
The government said they can either rent a room or a small flat from the open market.
It said with the liberalisation of the subletting market for HDB flats over the years, the Citizen-Singapore PR sibling scheme, introduced since 1990, is now no longer necessary.
Previously, the government allowed unmarried Singaporean siblings to buy a new or resale HDB flat, while PR siblings could buy a resale flat on a case-by-case basis with certain conditions attached.
Senior Minister of State for National Development & Education Grace Fu said: "As HDB has been very stringent in assessing applications for this scheme, the number of such cases is small.
"There are about 300 cases each year, or less than one per cent of total flat transactions".
-CNA/wk
- wong chee tat :)
Work on Changi Motorsports Hub halted
Work on Changi Motorsports Hub halted
By Ian De Cotta | Posted: 14 February 2011 2215 hrs
SINGAPORE : Work on the Changi Motorsports Hub has been stopped since the middle of last month.
This comes after SG Changi, which won the bid to build the facility, failed to deliver an instalment for the S$50 million piling work.
MediaCorp has learnt from SG Changi that the S$10 million outstanding amount will be paid on Tuesday, after company chairman and shareholder Fuminori Murahashi secured a personal loan.
"The amount will be enough to cover the entire cost of the piling work, but it is not going to cover the amount needed to complete the project," SG Changi's director and general manager, Moto Sakuma, told MediaCorp.
He added: "We have secured US$200 million from investors in Hong Kong that would have allowed us to do so, but they have frozen the funds."
The S$370 million project came under scrutiny after recent reports said the Corrupt Practices Investigation Bureau had begun a probe into the tender for the project.
It was revealed the consortium's only other shareholder, Thia Yoke Kian, had been assisting the bureau with investigations since November.
The Singapore permanent resident led the group to beat two other consortiums in their bid to build the track, but was dropped from the management team in July.
While Mr Sakuma said they have handed their accounts and records to the Bureau and cooperated fully, they are unsure if the probe in still ongoing or has been concluded.
A karting circuit, a quarter-mile drag racing strip, a motor museum and 35,000 square metres of commercial space are also being planned for the Motorsports Hub.
The probe has spooked interested parties, especially those from Singapore, and SG Changi now plans to court investors from Japan and Europe.
This could inevitably lead to the country's first permanent motor race track being under the total control of foreigners when completed at the end of 2011.
- CNA/ms
- wong chee tat :)
By Ian De Cotta | Posted: 14 February 2011 2215 hrs
SINGAPORE : Work on the Changi Motorsports Hub has been stopped since the middle of last month.
This comes after SG Changi, which won the bid to build the facility, failed to deliver an instalment for the S$50 million piling work.
MediaCorp has learnt from SG Changi that the S$10 million outstanding amount will be paid on Tuesday, after company chairman and shareholder Fuminori Murahashi secured a personal loan.
"The amount will be enough to cover the entire cost of the piling work, but it is not going to cover the amount needed to complete the project," SG Changi's director and general manager, Moto Sakuma, told MediaCorp.
He added: "We have secured US$200 million from investors in Hong Kong that would have allowed us to do so, but they have frozen the funds."
The S$370 million project came under scrutiny after recent reports said the Corrupt Practices Investigation Bureau had begun a probe into the tender for the project.
It was revealed the consortium's only other shareholder, Thia Yoke Kian, had been assisting the bureau with investigations since November.
The Singapore permanent resident led the group to beat two other consortiums in their bid to build the track, but was dropped from the management team in July.
While Mr Sakuma said they have handed their accounts and records to the Bureau and cooperated fully, they are unsure if the probe in still ongoing or has been concluded.
A karting circuit, a quarter-mile drag racing strip, a motor museum and 35,000 square metres of commercial space are also being planned for the Motorsports Hub.
The probe has spooked interested parties, especially those from Singapore, and SG Changi now plans to court investors from Japan and Europe.
This could inevitably lead to the country's first permanent motor race track being under the total control of foreigners when completed at the end of 2011.
- CNA/ms
- wong chee tat :)
Singapore raises 2011 inflation rate forecast
Singapore raises 2011 inflation rate forecast
By May Wong | Posted: 17 February 2011 2302 hrs
SINGAPORE: Singapore has raised its inflation forecast for this year to 3%-4%, up from a previous estimate of 2%-3%.
The Monetary Authority of Singapore (MAS) said the higher forecast is because of factors such as the surge in COE premiums.
However, the MAS forecast for core inflation, which excludes the cost of accommodation and private road transport, remains unchanged at 2%-3%.
At a Trade and Industry Ministry news conference on Thursday on Singapore's growth forecast, the central bank added that inflation is expected to accelerate to 5%-6% in the first few months of this year before moderating in the second half.
Singapore's economy powered ahead last year, growing 14.5%, only slightly slower than previously estimated and reversing the decline of 0.8% in 2009.
Manufacturing provided a significant lift to the economy. It grew 29.7% last year, following a 4.2% contraction in 2009.
For the fourth quarter, the manufacturing sector grew 25.5% year-on-year, faster than the 13.7% growth seen in the third quarter.
The biomedical manufacturing cluster, with strong recovery in pharmaceutical output, led the growth.
Growth in the construction industry continued last year but at a more modest pace of 6.1%, compared with 17.1% in 2009.
The services sector expanded 10.5% last year, compared with a contraction of 0.7% in 2009.
For the full year of 2011, the government has retained its economic growth forecast of between 4% and 6%.
Ravi Menon, Permanent Secretary for Trade and Industry, said: "This is going to be a more normal year, but I think in many ways, decisive in the kind of direction we set for ourselves for the next five to 10 years. 2011 will be different from previous years. Growth will be healthy but will be nowhere near as spectacular as it was in 2010 when the economy was rebounding from a recession.
"There are risks on the horizon, especially in Europe but we're not facing the prospects of a global financial crisis as in 2009. We're growing above the economy's underlying potential. This means there'll be a buildup in cost pressures, especially in the labour market.
"But we expect them to be more contained than in 2007/2008. On the whole, a good year for growth, with some need to be vigilant about cost pressures."
The pressures are already evident in higher food prices and more expensive residential property rentals. These are some factors prompting the central bank to raise its inflation forecast by one percentage-point for this year.
Irvin Seah, economist & vice-president at DBS Group Research, said: "The rise in labour costs will be the next driver of inflation in the coming months. So that would actually give more impetus to monetary tightening across Asia, in a sense that central banks will have to anchor inflation expectation in order to fight against this inflationary pressure.
"The data basically reinforces that the government would have to do something to help the lower-income families cope with rising cost of living. Therefore in this (2011) Budget, the government will help lower-income families cope with the rising cost of living.
"That will come in the form of massive special transfer package which we estimate to be worth S$7.2 billion. That's double the amount which was given during the Progress Package back in 2006 in the year of the last election."
With the central bank raising its inflation forecast, analysts say the MAS may signal its preference for a stronger Singapore dollar in its monetary policy announcement in April.
Based on the latest data, some analysts have revised their earlier forecasts.
Some believe Singapore's economy will grow about 5% in 2011. DBS has maintained its GDP forecast at 7% percent for 2011.
But Barclays Capital and OCBC have revised their numbers upwards to 5%.
Barclay's senior regional economist, Leong Wai Ho, said: "Looking ahead, we are now forecasting GDP growth of 5% in 2011, up from our earlier forecast of 4%. This forecast is based in part on an expected pick-up in demand for electronics on the back of the launch of Intel's 'Sandy Bridge' chipset and strong sales of smartphones and tablet PC products in early Q1 2011."
Sector-wise, the construction sector will go into a sharper moderation in 2011 because many projects are nearing completion. But analysts believe that the services industry will continue to be the key driver, not just for Singapore's economic growth but for job creation as well.
The services sector, observers say, accounts for about two-third of Singapore's total employment. And observers say this sector has traditionally been stable and reliable with star performers coming from the financial services and tourism segments this year.
- CNA/ir
- wong chee tat :)
By May Wong | Posted: 17 February 2011 2302 hrs
SINGAPORE: Singapore has raised its inflation forecast for this year to 3%-4%, up from a previous estimate of 2%-3%.
The Monetary Authority of Singapore (MAS) said the higher forecast is because of factors such as the surge in COE premiums.
However, the MAS forecast for core inflation, which excludes the cost of accommodation and private road transport, remains unchanged at 2%-3%.
At a Trade and Industry Ministry news conference on Thursday on Singapore's growth forecast, the central bank added that inflation is expected to accelerate to 5%-6% in the first few months of this year before moderating in the second half.
Singapore's economy powered ahead last year, growing 14.5%, only slightly slower than previously estimated and reversing the decline of 0.8% in 2009.
Manufacturing provided a significant lift to the economy. It grew 29.7% last year, following a 4.2% contraction in 2009.
For the fourth quarter, the manufacturing sector grew 25.5% year-on-year, faster than the 13.7% growth seen in the third quarter.
The biomedical manufacturing cluster, with strong recovery in pharmaceutical output, led the growth.
Growth in the construction industry continued last year but at a more modest pace of 6.1%, compared with 17.1% in 2009.
The services sector expanded 10.5% last year, compared with a contraction of 0.7% in 2009.
For the full year of 2011, the government has retained its economic growth forecast of between 4% and 6%.
Ravi Menon, Permanent Secretary for Trade and Industry, said: "This is going to be a more normal year, but I think in many ways, decisive in the kind of direction we set for ourselves for the next five to 10 years. 2011 will be different from previous years. Growth will be healthy but will be nowhere near as spectacular as it was in 2010 when the economy was rebounding from a recession.
"There are risks on the horizon, especially in Europe but we're not facing the prospects of a global financial crisis as in 2009. We're growing above the economy's underlying potential. This means there'll be a buildup in cost pressures, especially in the labour market.
"But we expect them to be more contained than in 2007/2008. On the whole, a good year for growth, with some need to be vigilant about cost pressures."
The pressures are already evident in higher food prices and more expensive residential property rentals. These are some factors prompting the central bank to raise its inflation forecast by one percentage-point for this year.
Irvin Seah, economist & vice-president at DBS Group Research, said: "The rise in labour costs will be the next driver of inflation in the coming months. So that would actually give more impetus to monetary tightening across Asia, in a sense that central banks will have to anchor inflation expectation in order to fight against this inflationary pressure.
"The data basically reinforces that the government would have to do something to help the lower-income families cope with rising cost of living. Therefore in this (2011) Budget, the government will help lower-income families cope with the rising cost of living.
"That will come in the form of massive special transfer package which we estimate to be worth S$7.2 billion. That's double the amount which was given during the Progress Package back in 2006 in the year of the last election."
With the central bank raising its inflation forecast, analysts say the MAS may signal its preference for a stronger Singapore dollar in its monetary policy announcement in April.
Based on the latest data, some analysts have revised their earlier forecasts.
Some believe Singapore's economy will grow about 5% in 2011. DBS has maintained its GDP forecast at 7% percent for 2011.
But Barclays Capital and OCBC have revised their numbers upwards to 5%.
Barclay's senior regional economist, Leong Wai Ho, said: "Looking ahead, we are now forecasting GDP growth of 5% in 2011, up from our earlier forecast of 4%. This forecast is based in part on an expected pick-up in demand for electronics on the back of the launch of Intel's 'Sandy Bridge' chipset and strong sales of smartphones and tablet PC products in early Q1 2011."
Sector-wise, the construction sector will go into a sharper moderation in 2011 because many projects are nearing completion. But analysts believe that the services industry will continue to be the key driver, not just for Singapore's economic growth but for job creation as well.
The services sector, observers say, accounts for about two-third of Singapore's total employment. And observers say this sector has traditionally been stable and reliable with star performers coming from the financial services and tourism segments this year.
- CNA/ir
- wong chee tat :)
Firms seek more tax goodies supporting innovation
Firms seek more tax goodies supporting innovation
By Millet Enriquez | Posted: 17 February 2011 2315 hrs
SINGAPORE : The Singapore Government is set to announce the details of its Budget 2011 on Friday.
And some analysts and small business owners in Singapore are hoping that this year's Budget will offer more tax goodies to support innovation initiatives.
Singapore-based technology firm XMI is hoping to take its portable speakers to the bigger markets of China and India.
And it is banking on its research and innovation strategy to keep its x-mini speakers ahead in Asia's competitive technology landscape.
Ryan Lee, CEO of XMI, said: "Within Asia in itself is difficult because then you are faced pricing competition from everywhere else...So we have tried to create lower end models of our products and lower cost models of our products so that we are able to hit a certain kind of price point to suit these markets."
Analysts said China and India are likely to lead in the creation of intellectual property in the coming years. And innovation will lead the way for Singapore to keep up in the future.
Alvin Liew, economist for global research at Standard Chartered Bank, said: "The push towards more R&D (research and development) being carried out in Singapore is certainly one of the long-term goals by the government and I would not be surprised to see more incentives given into this area."
Mr Liew believes these incentives may also likely be directed into areas where Singapore can develop an advantage, such as clean water technology and alternative energy sources.
The tax incentives for innovation were announced by the government during Budget 2010.
Under the Productivity and Innovation Credit announced in last year's Budget, companies can get a tax deduction of up to S$300,000 of their expenses in six activities.
These are in the areas of R&D, creation of intellectual property (IP), investments in design, and spending on equipment and software for automation, as well as workers' training.
The tax credits can be applied from year of assessment 2011 to 2015.
Some analysts said it makes sense to raise the tax credits to S$1.8 million, encompassing the six activities.
Professor Annie Koh, dean for executive and professional education at Singapore Management University, said: "Small companies find that they may need to spend more than S$300,000 on equipment. Large companies have already innate capabilities to do their own IP creation and IP registration. So lumping together will make total sense. Then we have the flexibility. I don't cap you but you justify for me whether you need more than S$300,000."
But analysts said this may require the creation of a separate government agency that will oversee these innovation activities.
Analysts said businesses in different cycles have different requirements for innovation.
While the small players are busy with IP creation and equipment acquisition, larger companies could be way past these stages and are now more involved in technology and design to commercialise their products.
- CNA/ms
- wong chee tat :)
By Millet Enriquez | Posted: 17 February 2011 2315 hrs
SINGAPORE : The Singapore Government is set to announce the details of its Budget 2011 on Friday.
And some analysts and small business owners in Singapore are hoping that this year's Budget will offer more tax goodies to support innovation initiatives.
Singapore-based technology firm XMI is hoping to take its portable speakers to the bigger markets of China and India.
And it is banking on its research and innovation strategy to keep its x-mini speakers ahead in Asia's competitive technology landscape.
Ryan Lee, CEO of XMI, said: "Within Asia in itself is difficult because then you are faced pricing competition from everywhere else...So we have tried to create lower end models of our products and lower cost models of our products so that we are able to hit a certain kind of price point to suit these markets."
Analysts said China and India are likely to lead in the creation of intellectual property in the coming years. And innovation will lead the way for Singapore to keep up in the future.
Alvin Liew, economist for global research at Standard Chartered Bank, said: "The push towards more R&D (research and development) being carried out in Singapore is certainly one of the long-term goals by the government and I would not be surprised to see more incentives given into this area."
Mr Liew believes these incentives may also likely be directed into areas where Singapore can develop an advantage, such as clean water technology and alternative energy sources.
The tax incentives for innovation were announced by the government during Budget 2010.
Under the Productivity and Innovation Credit announced in last year's Budget, companies can get a tax deduction of up to S$300,000 of their expenses in six activities.
These are in the areas of R&D, creation of intellectual property (IP), investments in design, and spending on equipment and software for automation, as well as workers' training.
The tax credits can be applied from year of assessment 2011 to 2015.
Some analysts said it makes sense to raise the tax credits to S$1.8 million, encompassing the six activities.
Professor Annie Koh, dean for executive and professional education at Singapore Management University, said: "Small companies find that they may need to spend more than S$300,000 on equipment. Large companies have already innate capabilities to do their own IP creation and IP registration. So lumping together will make total sense. Then we have the flexibility. I don't cap you but you justify for me whether you need more than S$300,000."
But analysts said this may require the creation of a separate government agency that will oversee these innovation activities.
Analysts said businesses in different cycles have different requirements for innovation.
While the small players are busy with IP creation and equipment acquisition, larger companies could be way past these stages and are now more involved in technology and design to commercialise their products.
- CNA/ms
- wong chee tat :)
HDB issues S$320m, 5-year notes
HDB issues S$320m, 5-year notes
By Jonathan Peeris | Posted: 17 February 2011 1919 hrs
SINGAPORE : The Housing and Development Board (HDB) has launched a new issuance of notes under its S$7 billion Medium Term Note Programme.
The issuance comprises a S$320 million, 5-year Fixed Rate Note issue with a coupon of 2.0225 per cent per year.
The issued notes will be in denominations of S$250,000 and will be offered by way of placement to investors.
Application is being made for the listing of the notes on the Singapore Exchange.
The joint lead managers are ANZ Banking Group and CIMB Bank.
Under HDB's Medium Term Note programme, HDB may from time to time issue bonds or notes to finance its development programme and working capital requirements.
- CNA/al
- wong chee tat :)
By Jonathan Peeris | Posted: 17 February 2011 1919 hrs
SINGAPORE : The Housing and Development Board (HDB) has launched a new issuance of notes under its S$7 billion Medium Term Note Programme.
The issuance comprises a S$320 million, 5-year Fixed Rate Note issue with a coupon of 2.0225 per cent per year.
The issued notes will be in denominations of S$250,000 and will be offered by way of placement to investors.
Application is being made for the listing of the notes on the Singapore Exchange.
The joint lead managers are ANZ Banking Group and CIMB Bank.
Under HDB's Medium Term Note programme, HDB may from time to time issue bonds or notes to finance its development programme and working capital requirements.
- CNA/al
- wong chee tat :)
Rising cost of living is Singapore's top concern: survey
Rising cost of living is Singapore's top concern: survey
Posted: 17 February 2011 2333 hrs
SINGAPORE: The rising cost of living is what Singaporeans are most concerned about, based on feedback gathered by the government's e-engagement platform, REACH.
The inputs were collected over the past two months ahead of Budget 2011, to be delivered by Finance Minister Tharman Shanmugaratnam on Friday.
Besides bread-and-butter issues, Singaporeans have also suggested ways to continue growing the economy and building a better home for all Singaporeans.
To gather feedback on the Budget announcement, various REACH channels will be opened online.
These include a dedicated REACH online discussion forum for Budget issues, webchats, email, SMS, Twitter, and Facebook.
A new initiative called Insights will also be introduced this year, where netizens can get expert opinion and more in-depth discussion on the Budget.
Members of the public may also tune in to Talkback on 938LIVE on Monday, February 21.
REACH Supervisory Panel Chairman Dr Amy Khor and Vice Chairman Dr Maliki Osman will be sharing and engaging callers on their views on the Budget.
The REACH Roving Exhibition has also been revamped to include a new look and more interactive elements to engage visitors.
The exhibition will be set up in the heart of the business district next week to engage professionals, managers, executives and businessmen and solicit their views on Budget 2011.
REACH will also be hosting three webchats in English, Malay and Chinese to seek views from the public on the Budget.
- CNA/cc/ir
- wong chee tat :)
Posted: 17 February 2011 2333 hrs
SINGAPORE: The rising cost of living is what Singaporeans are most concerned about, based on feedback gathered by the government's e-engagement platform, REACH.
The inputs were collected over the past two months ahead of Budget 2011, to be delivered by Finance Minister Tharman Shanmugaratnam on Friday.
Besides bread-and-butter issues, Singaporeans have also suggested ways to continue growing the economy and building a better home for all Singaporeans.
To gather feedback on the Budget announcement, various REACH channels will be opened online.
These include a dedicated REACH online discussion forum for Budget issues, webchats, email, SMS, Twitter, and Facebook.
A new initiative called Insights will also be introduced this year, where netizens can get expert opinion and more in-depth discussion on the Budget.
Members of the public may also tune in to Talkback on 938LIVE on Monday, February 21.
REACH Supervisory Panel Chairman Dr Amy Khor and Vice Chairman Dr Maliki Osman will be sharing and engaging callers on their views on the Budget.
The REACH Roving Exhibition has also been revamped to include a new look and more interactive elements to engage visitors.
The exhibition will be set up in the heart of the business district next week to engage professionals, managers, executives and businessmen and solicit their views on Budget 2011.
REACH will also be hosting three webchats in English, Malay and Chinese to seek views from the public on the Budget.
- CNA/cc/ir
- wong chee tat :)
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