Saturday, November 24, 2012
Singapore's inflation rate eases to 4.0% in Oct
Singapore's inflation rate eases to 4.0% in Oct
By Kristie Neo | Posted: 23 November 2012 1428 hrs
SINGAPORE: Singapore's inflation rate eased to 4.0 per cent in October from 4.7 per cent the previous month.
This slower-than-expected increase in the consumer price index was mainly due to smaller gains in transportation and housing costs.
Meanwhile, the core inflation rate, which excludes transport and accommodation costs, fell to 2.2 per cent in October from 2.4 per cent in September.
The Monetary Authority of Singapore (MAS) said this was due to lower contributions from food and oil-related items.
In October, transport cost increases moderated to 8.3 per cent from 10.8 per cent the previous month, reflecting the correction in Certificate of Entitlement (COE) premiums in September.
However, the relief for consumers may be short-lived, with plenty of upside pressure expected into 2013.
Alvin Liew, senior economist at UOB, said: "Judging from the latest COE auctions, some of the categories went back to fairly high levels and two categories went up to record high levels. And that would mean there would be small upside pressure coming in from the transport, private road transport component."
Meanwhile, accommodation-related cost increases also slowed to 6.8 per cent in October from 7.7 per cent the previous month.
The MAS said the moderation was largely due to the lower base effect in September 2011, where HDB rental and service and conservancy charges (S&CC) rebates were given out.
Together, accommodation and transportation costs account for close to two-thirds of October's inflation figures.
Food and oil-related inflation rates also saw declines.
Food inflation slowed to 1.7 per cent in October compared to 2.1 per cent the preceding month, following smaller price increases in non-cooked food and prepared meals.
Prices of oil-related items also rose at a slower pace in tandem with the moderation in global crude oil prices.
Meanwhile, services inflation rose to 3.1 per cent in October from 3.0 per cent in September, due to a stronger pickup in the costs of holiday travel and household services.
Healthcare costs peaked at 5.2 per cent in October, the highest since mid-2008. This is compared to just 1.8 per cent a year ago.
Tim Condon, managing director and head of research (Asia) at ING Bank NV, said: "These are things that are not susceptible to supply shocks. They are really driven by demand, so they are up this year compared to a year ago.
"That suggests that inflation expectations actually are elevated in Singapore, so that actually puts a dampener on how quickly we will see inflation coming off here."
Looking forward, the MAS said that imported inflation will be generally benign, given the continued weakness in the global economy.
Still, the authority expects global food prices to potentially face upward pressures in the next few months and into the early part of 2013, due to weather-related supply disruptions.
MAS added: "Meanwhile the persistent tightness in the labour market will support slightly stronger wage increases in 2013, which will continue to be passed through to consumer prices."
On the whole, MAS anticipates core inflation to be "broadly stable" and averaging around 2.5 per cent this year, and 2 to 3 per cent in 2013.
For the full year, CPI-All items inflation will remain "elevated" in the fourth quarter of 2012 and the first quarter of 2013, reflecting significant contributions from housing and accommodation costs.
CPI-All items inflation is likely to come in slightly above 4.5 per cent in 2012 and ease to 3.5 to 4.5 per cent in 2013.
- CNA/xq/ms
- wong chee tat :)
By Kristie Neo | Posted: 23 November 2012 1428 hrs
SINGAPORE: Singapore's inflation rate eased to 4.0 per cent in October from 4.7 per cent the previous month.
This slower-than-expected increase in the consumer price index was mainly due to smaller gains in transportation and housing costs.
Meanwhile, the core inflation rate, which excludes transport and accommodation costs, fell to 2.2 per cent in October from 2.4 per cent in September.
The Monetary Authority of Singapore (MAS) said this was due to lower contributions from food and oil-related items.
In October, transport cost increases moderated to 8.3 per cent from 10.8 per cent the previous month, reflecting the correction in Certificate of Entitlement (COE) premiums in September.
However, the relief for consumers may be short-lived, with plenty of upside pressure expected into 2013.
Alvin Liew, senior economist at UOB, said: "Judging from the latest COE auctions, some of the categories went back to fairly high levels and two categories went up to record high levels. And that would mean there would be small upside pressure coming in from the transport, private road transport component."
Meanwhile, accommodation-related cost increases also slowed to 6.8 per cent in October from 7.7 per cent the previous month.
The MAS said the moderation was largely due to the lower base effect in September 2011, where HDB rental and service and conservancy charges (S&CC) rebates were given out.
Together, accommodation and transportation costs account for close to two-thirds of October's inflation figures.
Food and oil-related inflation rates also saw declines.
Food inflation slowed to 1.7 per cent in October compared to 2.1 per cent the preceding month, following smaller price increases in non-cooked food and prepared meals.
Prices of oil-related items also rose at a slower pace in tandem with the moderation in global crude oil prices.
Meanwhile, services inflation rose to 3.1 per cent in October from 3.0 per cent in September, due to a stronger pickup in the costs of holiday travel and household services.
Healthcare costs peaked at 5.2 per cent in October, the highest since mid-2008. This is compared to just 1.8 per cent a year ago.
Tim Condon, managing director and head of research (Asia) at ING Bank NV, said: "These are things that are not susceptible to supply shocks. They are really driven by demand, so they are up this year compared to a year ago.
"That suggests that inflation expectations actually are elevated in Singapore, so that actually puts a dampener on how quickly we will see inflation coming off here."
Looking forward, the MAS said that imported inflation will be generally benign, given the continued weakness in the global economy.
Still, the authority expects global food prices to potentially face upward pressures in the next few months and into the early part of 2013, due to weather-related supply disruptions.
MAS added: "Meanwhile the persistent tightness in the labour market will support slightly stronger wage increases in 2013, which will continue to be passed through to consumer prices."
On the whole, MAS anticipates core inflation to be "broadly stable" and averaging around 2.5 per cent this year, and 2 to 3 per cent in 2013.
For the full year, CPI-All items inflation will remain "elevated" in the fourth quarter of 2012 and the first quarter of 2013, reflecting significant contributions from housing and accommodation costs.
CPI-All items inflation is likely to come in slightly above 4.5 per cent in 2012 and ease to 3.5 to 4.5 per cent in 2013.
- CNA/xq/ms
- wong chee tat :)
HPB launches dietary guidelines for seniors
HPB launches dietary guidelines for seniors
By Imelda Saad | Posted: 24 November 2012 1403 hrs
SINGAPORE: The Health Promotion Board (HPB) has launched a set of dietary guidelines for older adults aged 50 and above.
The aim is to help this group lower their risk of obesity, diabetes and heart disease.
This is the first time that dietary guidelines have been developed for seniors.
It highlights the need for a balanced and nutritious diet.
To make it easier for seniors to adjust their eating habits, the HPB has also included recipes and a healthier catering menu.
Over 100 elderly residents from Bukit Batok Constituency on Saturday learnt about the dietary guidelines as they witnessed a cooking demonstration led by Member of Parliament for Jurong Group Representation Constituency, David Ong.
- CNA/xq
- wong chee tat :)
By Imelda Saad | Posted: 24 November 2012 1403 hrs
SINGAPORE: The Health Promotion Board (HPB) has launched a set of dietary guidelines for older adults aged 50 and above.
The aim is to help this group lower their risk of obesity, diabetes and heart disease.
This is the first time that dietary guidelines have been developed for seniors.
It highlights the need for a balanced and nutritious diet.
To make it easier for seniors to adjust their eating habits, the HPB has also included recipes and a healthier catering menu.
Over 100 elderly residents from Bukit Batok Constituency on Saturday learnt about the dietary guidelines as they witnessed a cooking demonstration led by Member of Parliament for Jurong Group Representation Constituency, David Ong.
- CNA/xq
- wong chee tat :)
Growth in Islamic bond market in Asia
Growth in Islamic bond market in Asia
By Thomas Cho | Posted: 22 November 2012 2149 hrs
SINGAPORE: Growth in the Islamic bond market, or sukuk, has been inching higher in the region.
Sukuk issued in Asia accounts for about 40 percent or US$17 billion out of the total global issuance of US$43 billion this year.
Such Islamic bonds are popular with investors from the Middle East and has opened up new opportunities for Asian companies.
Singapore-listed Noble Group is the latest to consider Islamic bonds for its financing needs.
The commodities trading firm has announced that it will issue some 300 million Malaysian ringgit (US$98 million) of two-year Islamic bonds at 4.22 per cent per annum profit rate.
It joins a growing list of companies in Asia which have also raised money through Islamic financial products.
Experts say such alternative form of financing can attract new potential investors from the Middle East.
Sukuk are different from conventional bonds because it has to comply with Islamic law or the Shariah.
Shariah prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money. It also disallow investing in businesses that provide goods or services like liquor and gambling, which are considered contrary to Islamic principles and prohibited.
Lenny Feder, Group Head of Financial Markets at Standard Chartered Bank, said: "They are as good as normal bond, but it is different. There is a massive community of individuals or companies that want to invest in a Shariah compliant or Islamic compliant format, so I think there is plenty of interest and people are very confident in the structure of Islamic bonds."
Malaysia is still the top destination for Islamic finance.
More than 70 sukuk worth over US$15 billion have been issued from Malaysia so far this year, according to Dealogic as at end September.
With the World Bank expecting global assets managed in line with Islamic law growing to US$1.3 trillion this year, it is definitely a market too hard for issuers to ignore.
Another company that has issued Islamic bonds in Malaysia is Singapore-listed palm oil plantations operator Golden Agri Resources.
Golden Agri-Resource recently sold 1.5 billion Malaysian ringgit (US$489 million) five-year medium-term notes at a profit rate of 4.35 percent per annum.
Malaysia's Bank Rakyat also launched 1 billion Malaysian ringgit Sukuk on Tuesday.
Richard Fung, Director of Investor Relations at Golden Agri-Resources, said: "We believe the Islamic bond is interesting to Golden Agri because it allows us to broaden our investor base. This is a market particular strong in Malaysia in terms of depth as well as breadth and this product allows us to access investors normally we are not able to."
Experts say sukuk are also gaining popularity because firms are finding it tougher to borrow money from banks.
Bank lending in Asia now accounts for some 60 per cent of corporate finance compared to 80 per cent a decade ago.
Toby O'Connor, Chief Executive Officer of The Islamic Bank of Asia, said: "You are seeing a lot of big banks pulling back their funding lines and they are certainly not interested in providing loans with a lot of tenors. They are massive infrastructure projects going on in this part of the world as well as the Middle East and the sukuk market is a great opportunity to diversify one's funding sources."
Indonesia has also shown keen interest to be a big player in Islamic financing. Jakarta has issued a US$1 billion of 10-year sukuk with periodic distributions of 3.3 per cent per annum.
This is an initial part of the Indonesian government's establishment of a US$3 billion sukuk issuance programme.
- CNA/de
- wong chee tat :)
By Thomas Cho | Posted: 22 November 2012 2149 hrs
SINGAPORE: Growth in the Islamic bond market, or sukuk, has been inching higher in the region.
Sukuk issued in Asia accounts for about 40 percent or US$17 billion out of the total global issuance of US$43 billion this year.
Such Islamic bonds are popular with investors from the Middle East and has opened up new opportunities for Asian companies.
Singapore-listed Noble Group is the latest to consider Islamic bonds for its financing needs.
The commodities trading firm has announced that it will issue some 300 million Malaysian ringgit (US$98 million) of two-year Islamic bonds at 4.22 per cent per annum profit rate.
It joins a growing list of companies in Asia which have also raised money through Islamic financial products.
Experts say such alternative form of financing can attract new potential investors from the Middle East.
Sukuk are different from conventional bonds because it has to comply with Islamic law or the Shariah.
Shariah prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money. It also disallow investing in businesses that provide goods or services like liquor and gambling, which are considered contrary to Islamic principles and prohibited.
Lenny Feder, Group Head of Financial Markets at Standard Chartered Bank, said: "They are as good as normal bond, but it is different. There is a massive community of individuals or companies that want to invest in a Shariah compliant or Islamic compliant format, so I think there is plenty of interest and people are very confident in the structure of Islamic bonds."
Malaysia is still the top destination for Islamic finance.
More than 70 sukuk worth over US$15 billion have been issued from Malaysia so far this year, according to Dealogic as at end September.
With the World Bank expecting global assets managed in line with Islamic law growing to US$1.3 trillion this year, it is definitely a market too hard for issuers to ignore.
Another company that has issued Islamic bonds in Malaysia is Singapore-listed palm oil plantations operator Golden Agri Resources.
Golden Agri-Resource recently sold 1.5 billion Malaysian ringgit (US$489 million) five-year medium-term notes at a profit rate of 4.35 percent per annum.
Malaysia's Bank Rakyat also launched 1 billion Malaysian ringgit Sukuk on Tuesday.
Richard Fung, Director of Investor Relations at Golden Agri-Resources, said: "We believe the Islamic bond is interesting to Golden Agri because it allows us to broaden our investor base. This is a market particular strong in Malaysia in terms of depth as well as breadth and this product allows us to access investors normally we are not able to."
Experts say sukuk are also gaining popularity because firms are finding it tougher to borrow money from banks.
Bank lending in Asia now accounts for some 60 per cent of corporate finance compared to 80 per cent a decade ago.
Toby O'Connor, Chief Executive Officer of The Islamic Bank of Asia, said: "You are seeing a lot of big banks pulling back their funding lines and they are certainly not interested in providing loans with a lot of tenors. They are massive infrastructure projects going on in this part of the world as well as the Middle East and the sukuk market is a great opportunity to diversify one's funding sources."
Indonesia has also shown keen interest to be a big player in Islamic financing. Jakarta has issued a US$1 billion of 10-year sukuk with periodic distributions of 3.3 per cent per annum.
This is an initial part of the Indonesian government's establishment of a US$3 billion sukuk issuance programme.
- CNA/de
- wong chee tat :)
Subscribe to:
Posts (Atom)