Businesses find 2016 tough, expect 2017 to be tougher: Survey
By Calvin Hui Posted 28 Dec 2016 11:03 Updated 28 Dec 2016 12:02
SINGAPORE: Nearly two-thirds of local businesses felt that Singapore's economic climate has declined in 2016 and nearly half of the companies polled expect the situation to worsen in 2017, according to latest findings from the National Business Survey released on Wednesday (Dec 28).
The 2016/207 edition of the survey, which was conducted by the Singapore Business Federation (SBF), received responses from more than 1100 companies across different industries.
Some key challenges cited by businesses included operating costs and manpower issues, which included factors like labour costs, manpower laws as well as attracting and retaining younger workers.
SBF CEO Ho Meng Kit said: ““Singapore is impacted by the current subdued external demand and global trade due to its open and outward-oriented economy.
"Domestically, high operating costs and the constraints imposed by our foreign worker policies continue to affect businesses. Businesses find operating under this persistently tepid global and domestic economy challenging.”
The survey also found that only 3 in 10 businesses are satisfied with current government policies, with small and medium enterprises being less satisfied than larger ones.
In a press statement, the SBF said this indicates that the steps taken in this year’s budget were not “far-reaching enough, and do not have significant near term impact”.
SBF added that the focus in next year’s Budget should look at measures to assist businesses with manpower issues, as well as lower government compliance costs, fees and taxes.
Meanwhile, businesses are not embracing the government's message to transform and restructure, according the SBF. Just over 60 per cent of businesses surveyed agree that there is a need for companies to transform.
Among the SMEs, the survey revealed that majority had not yet made any significant adjustments to adapt to a slowing economy, as well as technological change and disruption.
And while the push to internationalise and expand overseas have been cited as a way for businesses to thrive, the survey showed that businesses are lacking in understanding of the opportunities available and requirements needed.
The data also showed that companies feel they do not think they will benefit from trade pacts, like the ASEAN Economic Community and Free Trade Agreements.
This year’s survey was done in collaboration with Blackbox Research Pte Ltd.
- CNA/am
- wong chee tat :)
Showing posts with label economic crisis. Show all posts
Showing posts with label economic crisis. Show all posts
Wednesday, December 28, 2016
Monday, June 6, 2016
Qatar sovereign wealth fund to buy Asia Square Tower 1 for record S$3.4b
Qatar sovereign wealth fund to buy Asia Square Tower 1 for record S$3.4b
The sale of the 43-storey office building to Qatar Investment Authority is the largest-ever single-tower real estate deal in the Asia-Pacific region.
Posted 06 Jun 2016 10:28 Updated 06 Jun 2016 12:05
SINGAPORE: BlackRock has agreed to sell a 43-storey office building in Singapore to Qatar Investment Authority, a sovereign wealth fund, for S$3.4 billion, in what the US firm said was the largest-ever single-tower real estate deal in the Asia-Pacific region.
Asia Square Tower 1, located along Marina View at Marina Bay, has more than 1.25 million square feet of net lettable area and has Citigroup as its anchor tenant, BlackRock and Qatar Investment Authority said in a joint statement.
BlackRock was advised by real estate consultant firms JLL and CBRE.
"Following this flagship transaction, we expect there will be increasing investor interest in Singapore prime office stock in the coming months," Greg Hyland, head of capital markets Singapore at JLL, said in a separate statement.
The sale comes as vacancy rates in Singapore's office property sector are nearing their highest level in almost a decade, with the supply of commercial space set to increase amid slowing economic growth.
Developers are set to add 4 million square feet of office space in Singapore this year and another 1.4 million next year, said Nicholas Mak, executive director at SLP International Property Consultants.
BlackRock also owns a second tower in the Asia Square development.
(Reporting by Aradhana Aravindan; Editing by Kenneth Maxwell and Edwina Gibbs)
- Reuters/cy
- wong chee tat :)
The sale of the 43-storey office building to Qatar Investment Authority is the largest-ever single-tower real estate deal in the Asia-Pacific region.
Posted 06 Jun 2016 10:28 Updated 06 Jun 2016 12:05
SINGAPORE: BlackRock has agreed to sell a 43-storey office building in Singapore to Qatar Investment Authority, a sovereign wealth fund, for S$3.4 billion, in what the US firm said was the largest-ever single-tower real estate deal in the Asia-Pacific region.
Asia Square Tower 1, located along Marina View at Marina Bay, has more than 1.25 million square feet of net lettable area and has Citigroup as its anchor tenant, BlackRock and Qatar Investment Authority said in a joint statement.
BlackRock was advised by real estate consultant firms JLL and CBRE.
"Following this flagship transaction, we expect there will be increasing investor interest in Singapore prime office stock in the coming months," Greg Hyland, head of capital markets Singapore at JLL, said in a separate statement.
The sale comes as vacancy rates in Singapore's office property sector are nearing their highest level in almost a decade, with the supply of commercial space set to increase amid slowing economic growth.
Developers are set to add 4 million square feet of office space in Singapore this year and another 1.4 million next year, said Nicholas Mak, executive director at SLP International Property Consultants.
BlackRock also owns a second tower in the Asia Square development.
(Reporting by Aradhana Aravindan; Editing by Kenneth Maxwell and Edwina Gibbs)
- Reuters/cy
- wong chee tat :)
Wednesday, April 27, 2016
Singapore's slow economic growth environment expected to continue: MAS
While the US is still expected to grow at a modest pace, Singapore may not be able to fully capitalise on it as most of US growth will be driven by domestic spending, said MAS.
By Patrick John Lim
Posted 27 Apr 2016 12:00 Updated 27 Apr 2016 15:04
SINGAPORE: The slow growth environment is expected to continue for Singapore's economy as cyclical factors put a dampener on economic growth, the Monetary Authority of Singapore (MAS) said in its biannual macroeconomic review on Wednesday (Apr 27).
The review contains MAS' analysis of macroeconomic developments affecting Singapore's economy.
Given a more modest pace of growth expected for Singapore's economy and core inflation, MAS moved to a neutral stance for its monetary policy, setting the rate of appreciation for the Singapore $NEER (nominal effective exchange rate) to zero.
In its review, MAS noted that softening growth among Singapore's key trading partners would affect externally-oriented industries. In particular, growth in capital formation is expected to be lower from the G3 economies which would affect trade-related sectors such as precision engineering.
The report also noted that US growth slackened towards the end of last year on the back of a moderation in personal consumption and weaker exports. While the US is still expected to grow at a modest pace, Singapore may not be able to fully capitalise on it as most of US growth will be driven by domestic spending.
Meanwhile, India could be a bright spot amid the tepid growth outlook, driven by private consumption and public infrastructure spending.
On the national scene, while domestic-facing sectors are expected to generally be more resilient, the central bank observed economic activity weakening among corporates, which saw more firms undertake consolidation activities last year. This included slower business loans growth and an uptick in redundancies.
However, it added that the corporate adjustments appear to be less severe compared to past periods of outright recession, and seems to be confined to specific pockets of industries.
Looking ahead, MAS said the long-term prospects for regional services trade still look bright, as the ongoing rebalancing of China towards a more consumption-based economy is expected to fuel demand for imported services. In its review, MAS highlighted opportunities for service firms in the areas of transport and communications as well as healthcare and medical.
- CNA/ek
- wong chee tat :)
While the US is still expected to grow at a modest pace, Singapore may not be able to fully capitalise on it as most of US growth will be driven by domestic spending, said MAS.
By Patrick John Lim
Posted 27 Apr 2016 12:00 Updated 27 Apr 2016 15:04
SINGAPORE: The slow growth environment is expected to continue for Singapore's economy as cyclical factors put a dampener on economic growth, the Monetary Authority of Singapore (MAS) said in its biannual macroeconomic review on Wednesday (Apr 27).
The review contains MAS' analysis of macroeconomic developments affecting Singapore's economy.
Given a more modest pace of growth expected for Singapore's economy and core inflation, MAS moved to a neutral stance for its monetary policy, setting the rate of appreciation for the Singapore $NEER (nominal effective exchange rate) to zero.
In its review, MAS noted that softening growth among Singapore's key trading partners would affect externally-oriented industries. In particular, growth in capital formation is expected to be lower from the G3 economies which would affect trade-related sectors such as precision engineering.
The report also noted that US growth slackened towards the end of last year on the back of a moderation in personal consumption and weaker exports. While the US is still expected to grow at a modest pace, Singapore may not be able to fully capitalise on it as most of US growth will be driven by domestic spending.
Meanwhile, India could be a bright spot amid the tepid growth outlook, driven by private consumption and public infrastructure spending.
On the national scene, while domestic-facing sectors are expected to generally be more resilient, the central bank observed economic activity weakening among corporates, which saw more firms undertake consolidation activities last year. This included slower business loans growth and an uptick in redundancies.
However, it added that the corporate adjustments appear to be less severe compared to past periods of outright recession, and seems to be confined to specific pockets of industries.
Looking ahead, MAS said the long-term prospects for regional services trade still look bright, as the ongoing rebalancing of China towards a more consumption-based economy is expected to fuel demand for imported services. In its review, MAS highlighted opportunities for service firms in the areas of transport and communications as well as healthcare and medical.
- CNA/ek
- wong chee tat :)
Sunday, March 13, 2016
What to expect from a ‘prudent’ Budget 2016
What to expect from a ‘prudent’ Budget 2016
Finance Minister Heng Swee Keat has said the government will be “particularly prudent” with this year’s Budget.
By Tang See Kit, Channel NewsAsia
Posted 11 Mar 2016 09:17
SINGAPORE: Singapore’s Finance Minister Heng Swee Keat will deliver the annual Budget statement on March 24 and, as usual, expectations have been building in terms of how the Government will be charting the path for the year ahead.
For now, Mr Heng has revealed that the upcoming Budget will have a strong focus on the economy, while adding that the government is likely to be "particularly prudent".
Given that this year’s Budget is the first in the new government’s term in office, which means that surpluses generated from the previous term of government will be locked up as reserves, analysts are not surprised by the remarks on fiscal prudence.
“Moving into a new term, one would have to note that the government is starting with nothing, so any expectations of excessive expenditure, such as the social transfers and spending we’ve seen in the SG50 Budget, will need to be reined in,” said Mizuho Bank’s Singapore-based economist Vishnu Varathan, referring to the roll-out of the SkillsFuture programme last year and the generous Pioneer Generation Package from 2014.
Meanwhile, a darkening global economic outlook, fuelled by a slower-growing China, turmoil in financial markets and plunging commodity prices, is also threatening Singapore's trade-reliant economy. The government is predicting a modest 1.0 to 3.0 per cent growth for the economy this year.
“The upcoming Budget will be cautious, with the focus likely to be on building fiscal reserves to provide some fiscal buffer in case of external economic shocks over the medium-term outlook,” noted Rajiv Biswas, IHS Global Insight’s chief economist for Asia-Pacific.
KEY FOCUS AREAS IN A ‘GROUNDED’ BUDGET
As such, analysts are expecting a “grounded” Budget aimed at addressing the growth slowdown and helping businesses to cope with a deteriorating operating environment.
Meanwhile, if the economic headwinds intensify and hit growth, tax revenue will likely be reduced. Given that possibility, this year’s Budget is expected to be “focused and targeted”, said Liang Eng Hwa, chair of the Government Parliamentary Committee (GPC) for Finance and Trade and Industry.
“This is the first budget of the new government, and the Minister will want to save some resources should (the global economy) turn for the worse. Noting that there are lesser resources to be allocated, the Minister will have to see which groups need to be taken care of,” Mr Liang noted.
In particular, small and medium-sized enterprises (SMEs), which face increasing pressure from debt servicing, high rents and manpower costs amid a slowing economy, are likely to be singled out for targeted support.
“There will likely be a clear (differentiation) between SMEs and multinational companies (MNCs) so if any help is rendered, it will be towards the SMEs because they face the most difficulties during these times,” according to ANZ economist Ng Weiwen.
Mr Liang noted there are existing measures such as the Productivity and Innovation Credit (PIC) scheme that provide help to SMEs, so new measures in this year’s Budget may be unlikely. Instead, the government may opt to tweak and improve existing schemes so as to “reach out to more SMEs”.
On this, tax and accountancy firm PricewaterhouseCoopers (PwC) recommended earlier this month that enhancements should be made to the PIC scheme to reward productivity gains, as well as encouraging the private sector to explore foreign markets by simplifying the procedures for companies to claim reliefs when their employees move overseas.
(File photo: AFP/Roslan Rahman)
Within the business community, some individual sectors may receive more assistance, analysts told Channel NewsAsia. Top of the list are externally-oriented sectors, the battered oil and gas industry and high-potential segments such as high-end semiconductors.
“Bearing in mind there’s a resource constraint, there will be cherry-picking and some industries will complain being left out. But providing help for industries such as electronics where there won’t be a turnaround will be throwing good money after the bad,” Mizuho’s Mr Varathan said. “By contrast, the higher-end semiconductors are still on ‘ok’ footing but given the pressure on trade demand, there could be a need for pre-emptive moves.”
Meanwhile, UOB analysts think more aid should be given to externally-oriented sectors, such as finance and insurance, wholesale and retail trade, given that these sectors have suffered a much bigger impact from faltering demand worldwide.
"Budget 2016 should take this into consideration and help to reduce some costs of doing business for these sectors, thus freeing up some cash-flow for companies during these difficult times," the report dated Mar 9 noted.
Some experts have also called attention to the significant lending exposure that Singapore banks have to China.
While the credit risk from this is likely to be limited, it remains a concern given the Singapore’s already-considerable exposure to a slowing Chinese economy, according to ANZ’s Mr Ng.
“A ball park estimate puts the loans that DBS, UOB and OCBC have extended to China at about 10 per cent of total loans, which is still quite modest. Credit risks from these loans will be mitigated given that the China exposure is predominantly in trade and finance sectors. These self-liquidating trade loans are usually backed by letters of credit from Chinese banks. Meanwhile, Singapore banks also face tougher regulatory requirements,” Mr Ng said.
“But given that our exposure to China has grown beyond trade, this could be something to look at.”
BALANCE EXPECTATIONS
However, amid the uncertainty, analysts told Channel NewsAsia that it is important to keep expectations in check given that Singapore’s economy is facing a slowdown, not a recession.
According to Mr Biswas from IHS Global Insight, Singapore is expected to see the continuation of “moderate positive gross domestic product (GDP) growth” in 2016 hence there is no need for “exceptional measures” to be introduced in this year’s Budget.
“Although Singapore’s manufacturing sector has been in protracted recession throughout 2015, the overall economy is still showing moderate positive growth, helped by continued expansion of the services economy. Singapore’s role as a leading global financial centre, logistics, shipping and aviation hub as well as a regional headquartering hub for MNCs continues to underpin the economy.”
- CNA/sk
- wong chee tat :)
Finance Minister Heng Swee Keat has said the government will be “particularly prudent” with this year’s Budget.
By Tang See Kit, Channel NewsAsia
Posted 11 Mar 2016 09:17
SINGAPORE: Singapore’s Finance Minister Heng Swee Keat will deliver the annual Budget statement on March 24 and, as usual, expectations have been building in terms of how the Government will be charting the path for the year ahead.
For now, Mr Heng has revealed that the upcoming Budget will have a strong focus on the economy, while adding that the government is likely to be "particularly prudent".
Given that this year’s Budget is the first in the new government’s term in office, which means that surpluses generated from the previous term of government will be locked up as reserves, analysts are not surprised by the remarks on fiscal prudence.
“Moving into a new term, one would have to note that the government is starting with nothing, so any expectations of excessive expenditure, such as the social transfers and spending we’ve seen in the SG50 Budget, will need to be reined in,” said Mizuho Bank’s Singapore-based economist Vishnu Varathan, referring to the roll-out of the SkillsFuture programme last year and the generous Pioneer Generation Package from 2014.
Meanwhile, a darkening global economic outlook, fuelled by a slower-growing China, turmoil in financial markets and plunging commodity prices, is also threatening Singapore's trade-reliant economy. The government is predicting a modest 1.0 to 3.0 per cent growth for the economy this year.
“The upcoming Budget will be cautious, with the focus likely to be on building fiscal reserves to provide some fiscal buffer in case of external economic shocks over the medium-term outlook,” noted Rajiv Biswas, IHS Global Insight’s chief economist for Asia-Pacific.
KEY FOCUS AREAS IN A ‘GROUNDED’ BUDGET
As such, analysts are expecting a “grounded” Budget aimed at addressing the growth slowdown and helping businesses to cope with a deteriorating operating environment.
Meanwhile, if the economic headwinds intensify and hit growth, tax revenue will likely be reduced. Given that possibility, this year’s Budget is expected to be “focused and targeted”, said Liang Eng Hwa, chair of the Government Parliamentary Committee (GPC) for Finance and Trade and Industry.
“This is the first budget of the new government, and the Minister will want to save some resources should (the global economy) turn for the worse. Noting that there are lesser resources to be allocated, the Minister will have to see which groups need to be taken care of,” Mr Liang noted.
In particular, small and medium-sized enterprises (SMEs), which face increasing pressure from debt servicing, high rents and manpower costs amid a slowing economy, are likely to be singled out for targeted support.
“There will likely be a clear (differentiation) between SMEs and multinational companies (MNCs) so if any help is rendered, it will be towards the SMEs because they face the most difficulties during these times,” according to ANZ economist Ng Weiwen.
Mr Liang noted there are existing measures such as the Productivity and Innovation Credit (PIC) scheme that provide help to SMEs, so new measures in this year’s Budget may be unlikely. Instead, the government may opt to tweak and improve existing schemes so as to “reach out to more SMEs”.
On this, tax and accountancy firm PricewaterhouseCoopers (PwC) recommended earlier this month that enhancements should be made to the PIC scheme to reward productivity gains, as well as encouraging the private sector to explore foreign markets by simplifying the procedures for companies to claim reliefs when their employees move overseas.
(File photo: AFP/Roslan Rahman)
Within the business community, some individual sectors may receive more assistance, analysts told Channel NewsAsia. Top of the list are externally-oriented sectors, the battered oil and gas industry and high-potential segments such as high-end semiconductors.
“Bearing in mind there’s a resource constraint, there will be cherry-picking and some industries will complain being left out. But providing help for industries such as electronics where there won’t be a turnaround will be throwing good money after the bad,” Mizuho’s Mr Varathan said. “By contrast, the higher-end semiconductors are still on ‘ok’ footing but given the pressure on trade demand, there could be a need for pre-emptive moves.”
Meanwhile, UOB analysts think more aid should be given to externally-oriented sectors, such as finance and insurance, wholesale and retail trade, given that these sectors have suffered a much bigger impact from faltering demand worldwide.
"Budget 2016 should take this into consideration and help to reduce some costs of doing business for these sectors, thus freeing up some cash-flow for companies during these difficult times," the report dated Mar 9 noted.
Some experts have also called attention to the significant lending exposure that Singapore banks have to China.
While the credit risk from this is likely to be limited, it remains a concern given the Singapore’s already-considerable exposure to a slowing Chinese economy, according to ANZ’s Mr Ng.
“A ball park estimate puts the loans that DBS, UOB and OCBC have extended to China at about 10 per cent of total loans, which is still quite modest. Credit risks from these loans will be mitigated given that the China exposure is predominantly in trade and finance sectors. These self-liquidating trade loans are usually backed by letters of credit from Chinese banks. Meanwhile, Singapore banks also face tougher regulatory requirements,” Mr Ng said.
“But given that our exposure to China has grown beyond trade, this could be something to look at.”
BALANCE EXPECTATIONS
However, amid the uncertainty, analysts told Channel NewsAsia that it is important to keep expectations in check given that Singapore’s economy is facing a slowdown, not a recession.
According to Mr Biswas from IHS Global Insight, Singapore is expected to see the continuation of “moderate positive gross domestic product (GDP) growth” in 2016 hence there is no need for “exceptional measures” to be introduced in this year’s Budget.
“Although Singapore’s manufacturing sector has been in protracted recession throughout 2015, the overall economy is still showing moderate positive growth, helped by continued expansion of the services economy. Singapore’s role as a leading global financial centre, logistics, shipping and aviation hub as well as a regional headquartering hub for MNCs continues to underpin the economy.”
- CNA/sk
- wong chee tat :)
Tuesday, April 28, 2015
More workers laid off in 2014 amid restructuring
More workers laid off in 2014 amid restructuring
By Dylan Loh, Channel NewsAsia
POSTED: 23 Apr 2015 11:11
UPDATED: 24 Apr 2015 00:00
SINGAPORE: More people were laid off in Singapore last year, due to a rise in redundancies among non-residents, according to data released by the Ministry of Manpower (MOM) on Thursday (Apr 23).
In 2014, 12,930 workers were laid off, up from 11,560 in 2013. In other words, 6.3 workers were made redundant for every 1,000 employees, the report said.
However, fewer citizens and Permanent Residents were made redundant last year – 7,240 were laid off last year, as compared to 7,520 in 2013.
The increase in redundancies was mainly from the services sector, said MOM. Layoffs in the construction sector also went up, amid a decline in private sector construction output.
The manufacturing sector, a key pillar of Singapore's economy, contributed less of a share to redundancies in 2014. But experts said this sector should still be closely watched, especially if more firms relocate their activities overseas.
Professionals, managers, executives and technicians (PMETs) formed 51 per cent of the layoffs last year, as compared to 56 per cent in 2013. The likelihood of redundancy among PMETs remained higher than clerical, sales and service workers, and production and related workers.
The top reasons cited by firms for the redundancies were restructuring, re-organisation and poor business. Human resource experts said this is typical of what firms in an economy in transition will experience.
"We are seeing a very strong business economy right now. We are seeing jobs are created, we are seeing the human resources departments in companies still recruiting rapidly. They've got a lot of people they need to bring in, and it's generally a very good market for job seekers," said Mr Ian Grundy, Head of Marketing and Communications Asia at Adecco Personnel.
Mr Erman Tan, President of the Singapore Human Resources Institute said there will be a certain level of layoffs in various industries.
"But we really encourage the workforce to keep a very open mindset and to ensure that they continue to pick up new skills; to have a lifelong learning attitude just to ensure that they have skills sets that are always relevant to the marketplace," he added.
WORKERS FIND NEW JOBS MORE QUICKLY
Residents who were made redundant found replacement jobs more quickly last year, according to the report. The rate of re-entry into employment within six months of being laid off rose for the third consecutive quarter to 59 per cent in Dec 2014, said MOM.
Additionally, 68 per cent of residents who were laid off in the first three quarters of 2014 found jobs by December in the same year. This is compared to 66 per cent of the previous cohort.
About half of those who were laid off found new jobs within a month, and 68 per cent found work in a different industry, the data revealed.
- CNA/xq/dl
- wong chee tat :)
By Dylan Loh, Channel NewsAsia
POSTED: 23 Apr 2015 11:11
UPDATED: 24 Apr 2015 00:00
SINGAPORE: More people were laid off in Singapore last year, due to a rise in redundancies among non-residents, according to data released by the Ministry of Manpower (MOM) on Thursday (Apr 23).
In 2014, 12,930 workers were laid off, up from 11,560 in 2013. In other words, 6.3 workers were made redundant for every 1,000 employees, the report said.
However, fewer citizens and Permanent Residents were made redundant last year – 7,240 were laid off last year, as compared to 7,520 in 2013.
The increase in redundancies was mainly from the services sector, said MOM. Layoffs in the construction sector also went up, amid a decline in private sector construction output.
The manufacturing sector, a key pillar of Singapore's economy, contributed less of a share to redundancies in 2014. But experts said this sector should still be closely watched, especially if more firms relocate their activities overseas.
Professionals, managers, executives and technicians (PMETs) formed 51 per cent of the layoffs last year, as compared to 56 per cent in 2013. The likelihood of redundancy among PMETs remained higher than clerical, sales and service workers, and production and related workers.
The top reasons cited by firms for the redundancies were restructuring, re-organisation and poor business. Human resource experts said this is typical of what firms in an economy in transition will experience.
"We are seeing a very strong business economy right now. We are seeing jobs are created, we are seeing the human resources departments in companies still recruiting rapidly. They've got a lot of people they need to bring in, and it's generally a very good market for job seekers," said Mr Ian Grundy, Head of Marketing and Communications Asia at Adecco Personnel.
Mr Erman Tan, President of the Singapore Human Resources Institute said there will be a certain level of layoffs in various industries.
"But we really encourage the workforce to keep a very open mindset and to ensure that they continue to pick up new skills; to have a lifelong learning attitude just to ensure that they have skills sets that are always relevant to the marketplace," he added.
WORKERS FIND NEW JOBS MORE QUICKLY
Residents who were made redundant found replacement jobs more quickly last year, according to the report. The rate of re-entry into employment within six months of being laid off rose for the third consecutive quarter to 59 per cent in Dec 2014, said MOM.
Additionally, 68 per cent of residents who were laid off in the first three quarters of 2014 found jobs by December in the same year. This is compared to 66 per cent of the previous cohort.
About half of those who were laid off found new jobs within a month, and 68 per cent found work in a different industry, the data revealed.
- CNA/xq/dl
- wong chee tat :)
Saturday, July 20, 2013
More PMETs hired on contract
More PMETs hired on contract
By Imelda Saad
POSTED: 20 Jul 2013 9:17 PM
Short-term contract work seems to be a growing trend among professionals in Singapore as the economy restructures.
SINGAPORE: Short-term contract work seems to be a growing trend among professionals in Singapore as the economy restructures.
And increasingly, this is working in the favour of employees, say HR experts.
Contract work used to be the domain of low-skilled workers.
But increasingly, professionals, managers, executives and technicians (PMETs) are being hired on contracts.
Figures from the Manpower Ministry show that some 70,000 PMETs were hired on term contracts last year, up from 67,000 in 2011.
HR firms Channel NewsAsia spoke to also noticed a similar growing trend.
Robert Walters said it saw a 43% increase in contracting vacancies in the first quarter of this year, compared with the 4th quarter in 2012.
Mr Toby Fowlston, managing director of Robert Walters Singapore, said: "If a company is looking to move operations to other parts of Southeast Asia or other parts of the world, and they are not necessarily able to secure permanent headcount sign-ons, so obviously, interim contract is a more viable option."
Meanwhile, Ms Linda Teo, country manager of Manpower Singapore, said: "Yes, we have seen an increase in contingent orders. In view that organisations do not know what will happen with Europe and the US, organisations will take more contingent workforce to gain more flexibility."
HR experts say contract work will be a growing market in challenging economic times when companies need to exercise flexibility on headcount.
The contract period for PMETs is typically short-term -- anything from six months to a year.
A quick street poll shows that workers still value job security.
Le Duy Linh, a Vietnamese software developer, who is on a two-year contract in Singapore, said: "A short term contract is not comfortable for the employee because it does not guarantee anything. Up to six months -- what can you do if your contract expires? You go home?"
Ee Ling, a quality service officer, said: "Not for me. I have commitments. So, because of commitments, I need something full-time."
Chiu Kai Ling, a manager, said: "In this economic climate, I'm not that comfortable because it's not very certain whether I will be able to find a job by the time my contract ends."
Joshua Tay, a corporate services manager, said: "I prefer to have a stable position where I can excel, maybe at least three years and above."
Perceptions aside, one HR firm said more professionals in Singapore are warming up to the idea of contract work
Hays said it has seen a three-fold increase in the number of people looking for such work over the past three to four years.
And the hunt for skilled people is happening across sectors.
One big change it is starting to see is that contract staff are getting better deals.
Hays' regional director Chris Mead said: "It used to be they would get minimal benefits, and I think when you have minimal benefits and only a short-term job, it can sometimes lead to a perception that this is not a good thing to do.
"But the smart organisations in Singapore - and I would say the oil and gas industry, the banking and finance industry and technology industry, in particular - have started to change the benefits that are available to contract workers, coming much more in line with permanent staff."
Another trend emerging is the conversion of contract workers to permanent staff by employers who are satisfied with the person they have hired.
"Also, a growing trend in Singapore is that the employer takes on an employee for six, nine or 12 months on a contract, and if the work is ongoing, the employee likes the company, the company likes the employee, then that employee is converted to a permanent (staff)," said Mr Mead.
With contract work, there is always the issue of job security. So experts advise workers to go in with their eyes open.
"It does take a leap of faith if you take a nine-month contract. Obviously, there's an element of uncertainty there. However, for good skilled professional staff, the unemployment rate in Singapore is about 2%, so there is no shortage of good jobs out there for staff who are professionally trained and have good experience. So the risk of going for a long time without a job is actually quite minimal," added Mr Mead.
- CNA/ir
- wong chee tat :)
By Imelda Saad
POSTED: 20 Jul 2013 9:17 PM
Short-term contract work seems to be a growing trend among professionals in Singapore as the economy restructures.
SINGAPORE: Short-term contract work seems to be a growing trend among professionals in Singapore as the economy restructures.
And increasingly, this is working in the favour of employees, say HR experts.
Contract work used to be the domain of low-skilled workers.
But increasingly, professionals, managers, executives and technicians (PMETs) are being hired on contracts.
Figures from the Manpower Ministry show that some 70,000 PMETs were hired on term contracts last year, up from 67,000 in 2011.
HR firms Channel NewsAsia spoke to also noticed a similar growing trend.
Robert Walters said it saw a 43% increase in contracting vacancies in the first quarter of this year, compared with the 4th quarter in 2012.
Mr Toby Fowlston, managing director of Robert Walters Singapore, said: "If a company is looking to move operations to other parts of Southeast Asia or other parts of the world, and they are not necessarily able to secure permanent headcount sign-ons, so obviously, interim contract is a more viable option."
Meanwhile, Ms Linda Teo, country manager of Manpower Singapore, said: "Yes, we have seen an increase in contingent orders. In view that organisations do not know what will happen with Europe and the US, organisations will take more contingent workforce to gain more flexibility."
HR experts say contract work will be a growing market in challenging economic times when companies need to exercise flexibility on headcount.
The contract period for PMETs is typically short-term -- anything from six months to a year.
A quick street poll shows that workers still value job security.
Le Duy Linh, a Vietnamese software developer, who is on a two-year contract in Singapore, said: "A short term contract is not comfortable for the employee because it does not guarantee anything. Up to six months -- what can you do if your contract expires? You go home?"
Ee Ling, a quality service officer, said: "Not for me. I have commitments. So, because of commitments, I need something full-time."
Chiu Kai Ling, a manager, said: "In this economic climate, I'm not that comfortable because it's not very certain whether I will be able to find a job by the time my contract ends."
Joshua Tay, a corporate services manager, said: "I prefer to have a stable position where I can excel, maybe at least three years and above."
Perceptions aside, one HR firm said more professionals in Singapore are warming up to the idea of contract work
Hays said it has seen a three-fold increase in the number of people looking for such work over the past three to four years.
And the hunt for skilled people is happening across sectors.
One big change it is starting to see is that contract staff are getting better deals.
Hays' regional director Chris Mead said: "It used to be they would get minimal benefits, and I think when you have minimal benefits and only a short-term job, it can sometimes lead to a perception that this is not a good thing to do.
"But the smart organisations in Singapore - and I would say the oil and gas industry, the banking and finance industry and technology industry, in particular - have started to change the benefits that are available to contract workers, coming much more in line with permanent staff."
Another trend emerging is the conversion of contract workers to permanent staff by employers who are satisfied with the person they have hired.
"Also, a growing trend in Singapore is that the employer takes on an employee for six, nine or 12 months on a contract, and if the work is ongoing, the employee likes the company, the company likes the employee, then that employee is converted to a permanent (staff)," said Mr Mead.
With contract work, there is always the issue of job security. So experts advise workers to go in with their eyes open.
"It does take a leap of faith if you take a nine-month contract. Obviously, there's an element of uncertainty there. However, for good skilled professional staff, the unemployment rate in Singapore is about 2%, so there is no shortage of good jobs out there for staff who are professionally trained and have good experience. So the risk of going for a long time without a job is actually quite minimal," added Mr Mead.
- CNA/ir
- wong chee tat :)
Thursday, July 18, 2013
Canada central bank maintains key lending rate at 1%
Canada central bank maintains key lending rate at 1%
POSTED: 17 Jul 2013 10:57 PM
Canada's central bank on Wednesday held its key interest rate at 1.0 per cent, while downgrading its global economic forecast.
OTTAWA: Canada's central bank on Wednesday held its key interest rate at 1.0 per cent, while downgrading its global economic forecast.
The Bank of Canada pointed to a struggling European economy and a slowdown in China, offsetting recent gains in Japan and the United States
"Global economic growth remains modest," the bank said in a statement.
It also hinted it would maintain for the foreseeable future its near historic low rate, which has been in place since September 2010.
"As long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively, the considerable monetary policy stimulus currently in place will remain appropriate," it said.
The bank noted that US economy is growing at a "moderate pace," with continued strengthening in private sector demand partly offset by the impact of fiscal consolidation.
Meanwhile Japan's recent stimulus has led to "a rapid recovery in economic growth," the bank said.
However, Europe's economy "remains weak" and economic growth in China and other emerging nations "has slowed, exerting downward pressure on global commodity prices."
"As a consequence, the bank has downgraded slightly its global growth forecast," it said, adding that the global economy is still expected to pick up in 2014 and 2015.
In Canada, growth is expected to be "choppy in the near term, owing to unusual temporary factors," the bank said.
Despite ongoing competitiveness challenges, Canadian exports are projected to "gather momentum," which in turn will boost confidence and lead to more business investment, it said.
The Canadian economy will also be supported by continued growth in consumer spending, while a bit less is expected to be spent on new homes.
- AFP/fa
- wong chee tat :)
POSTED: 17 Jul 2013 10:57 PM
Canada's central bank on Wednesday held its key interest rate at 1.0 per cent, while downgrading its global economic forecast.
OTTAWA: Canada's central bank on Wednesday held its key interest rate at 1.0 per cent, while downgrading its global economic forecast.
The Bank of Canada pointed to a struggling European economy and a slowdown in China, offsetting recent gains in Japan and the United States
"Global economic growth remains modest," the bank said in a statement.
It also hinted it would maintain for the foreseeable future its near historic low rate, which has been in place since September 2010.
"As long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively, the considerable monetary policy stimulus currently in place will remain appropriate," it said.
The bank noted that US economy is growing at a "moderate pace," with continued strengthening in private sector demand partly offset by the impact of fiscal consolidation.
Meanwhile Japan's recent stimulus has led to "a rapid recovery in economic growth," the bank said.
However, Europe's economy "remains weak" and economic growth in China and other emerging nations "has slowed, exerting downward pressure on global commodity prices."
"As a consequence, the bank has downgraded slightly its global growth forecast," it said, adding that the global economy is still expected to pick up in 2014 and 2015.
In Canada, growth is expected to be "choppy in the near term, owing to unusual temporary factors," the bank said.
Despite ongoing competitiveness challenges, Canadian exports are projected to "gather momentum," which in turn will boost confidence and lead to more business investment, it said.
The Canadian economy will also be supported by continued growth in consumer spending, while a bit less is expected to be spent on new homes.
- AFP/fa
- wong chee tat :)
Sunday, June 23, 2013
Bernanke Sneezes, Global Markets Catch a Cold
Bernanke Sneezes, Global Markets Catch a Cold
By the Editors Jun 21, 2013 6:00 AM GMT+0800
Stocks worldwide fell after Federal Reserve Chairman Ben S. Bernanke’s June 19 statement on U.S. monetary policy. Emerging markets were hit especially hard. The statement, and Bernanke’s comments afterward, shouldn’t have come as a surprise -- so what’s going on? Was the sell-off a meaningless overreaction, or a warning of new financial stresses ahead?
A bit of both. Bernanke said the Fed’s program of quantitative easing would be reduced over the next year or so, and probably ended in 2014 -- so long as the economy continued to strengthen as the Fed expects. He also reiterated his plan to keep short-term interest rates on the floor for longer than that. Again, none of this was unexpected. It would have been shocking if he’d said anything else.
In that sense financial markets overreacted, as they are apt to do. But Bernanke also focused investors’ attention on the challenges of a return to normalcy in global financial conditions -- because that’s what the tapering of QE and the (still distant) prospect of higher short-term interest rates represent. Monetary policy quite rightly went far out on a limb in the aftermath of the recession, and getting off that limb was never going to be easy. Anxiety over this maneuver isn’t misplaced.
For the past several years, central banks, led by the Fed, have provided extraordinary liquidity to global markets, driving down interest rates and leading investors to search far and wide for decent returns. Capital has flowed into emerging markets. As normal prices and valuations are restored, these flows are bound to be partially reversed, and assets whose prices were bid up will get cheaper. The process had already begun; this week it accelerated.
The danger is that the adjustment will be so abrupt that it causes collateral damage, or that asset prices might fluctuate wildly as the market finds equilibrium. It has long been argued that there’d be less volatility if policy makers made their intentions clearer, but at the moment this doesn’t look so plausible. Bernanke has worked hard to provide greater transparency about the Fed’s thinking, and it hasn’t helped.
To paraphrase the bumper sticker, volatility happens, and there’s not much policy makers can do about it. But they can help their economies and financial systems to take these lurches in stride. Here’s the real cause for complaint -- and alarm. Work to strengthen banking systems in advanced and emerging economies alike has barely begun. Financial systems are still seriously undercapitalized, and their capacity to absorb losses is too thin. This makes volatility much more dangerous than it needs to be -- and it’s a vicious circle, because fragile systems are more susceptible to panic, which in turn amplifies the volatility.
In many emerging markets, this danger is compounded by weak and opaque supervision, and by other homegrown policy challenges. Long before sentiment moved further against emerging-market stocks on June 19, investors in China were grappling with signs of a serious slowdown and government moves to slow the supply of credit. India is juggling a limited liberalization of its financial system, a huge current-account deficit and a falling rupee. Emergent middle classes in Brazil, Chile, Russia and Turkey, to name just a few, see their prospects dimming and are demanding action.
Instability in emerging markets -- in financial markets anywhere -- is a given, especially over the next few years. The right thing to ask of governments is greater resilience. That’s within their power to deliver.
To contact the Bloomberg View editorial board: view@bloomberg.net.
- wong chee tat :)
By the Editors Jun 21, 2013 6:00 AM GMT+0800
Stocks worldwide fell after Federal Reserve Chairman Ben S. Bernanke’s June 19 statement on U.S. monetary policy. Emerging markets were hit especially hard. The statement, and Bernanke’s comments afterward, shouldn’t have come as a surprise -- so what’s going on? Was the sell-off a meaningless overreaction, or a warning of new financial stresses ahead?
A bit of both. Bernanke said the Fed’s program of quantitative easing would be reduced over the next year or so, and probably ended in 2014 -- so long as the economy continued to strengthen as the Fed expects. He also reiterated his plan to keep short-term interest rates on the floor for longer than that. Again, none of this was unexpected. It would have been shocking if he’d said anything else.
In that sense financial markets overreacted, as they are apt to do. But Bernanke also focused investors’ attention on the challenges of a return to normalcy in global financial conditions -- because that’s what the tapering of QE and the (still distant) prospect of higher short-term interest rates represent. Monetary policy quite rightly went far out on a limb in the aftermath of the recession, and getting off that limb was never going to be easy. Anxiety over this maneuver isn’t misplaced.
For the past several years, central banks, led by the Fed, have provided extraordinary liquidity to global markets, driving down interest rates and leading investors to search far and wide for decent returns. Capital has flowed into emerging markets. As normal prices and valuations are restored, these flows are bound to be partially reversed, and assets whose prices were bid up will get cheaper. The process had already begun; this week it accelerated.
The danger is that the adjustment will be so abrupt that it causes collateral damage, or that asset prices might fluctuate wildly as the market finds equilibrium. It has long been argued that there’d be less volatility if policy makers made their intentions clearer, but at the moment this doesn’t look so plausible. Bernanke has worked hard to provide greater transparency about the Fed’s thinking, and it hasn’t helped.
To paraphrase the bumper sticker, volatility happens, and there’s not much policy makers can do about it. But they can help their economies and financial systems to take these lurches in stride. Here’s the real cause for complaint -- and alarm. Work to strengthen banking systems in advanced and emerging economies alike has barely begun. Financial systems are still seriously undercapitalized, and their capacity to absorb losses is too thin. This makes volatility much more dangerous than it needs to be -- and it’s a vicious circle, because fragile systems are more susceptible to panic, which in turn amplifies the volatility.
In many emerging markets, this danger is compounded by weak and opaque supervision, and by other homegrown policy challenges. Long before sentiment moved further against emerging-market stocks on June 19, investors in China were grappling with signs of a serious slowdown and government moves to slow the supply of credit. India is juggling a limited liberalization of its financial system, a huge current-account deficit and a falling rupee. Emergent middle classes in Brazil, Chile, Russia and Turkey, to name just a few, see their prospects dimming and are demanding action.
Instability in emerging markets -- in financial markets anywhere -- is a given, especially over the next few years. The right thing to ask of governments is greater resilience. That’s within their power to deliver.
To contact the Bloomberg View editorial board: view@bloomberg.net.
- wong chee tat :)
Monday, May 13, 2013
China "shadow banking" growing fast
China "shadow banking" growing fast
POSTED: 13 May 2013 7:36 PM
China's shadow banking activities have risen nearly 70 per cent over the past two years and now total more than half the size of the world's second-largest economy.
BEIJING: China's shadow banking activities have risen nearly 70 per cent over the past two years and now total more than half the size of the world's second-largest economy, ratings agency Moody's said on Monday.
Shadow banking includes private lending, off-balance-sheet vehicles and trusts, and allows borrowers to circumvent banks' formal underwriting standards, as well as official regulation.
Such lending has surged 67 per cent since the end of 2010, Moody's said in a report, reaching an estimated total of 29 trillion yuan (US$4.7 trillion) at the end of last year, or 55 per cent of China's GDP.
The rapid growth was partly due to some borrowers having difficulties obtaining regular bank loans, according to the report, and threatened the health of the banking system and the overall economy.
"Shadow banking may encourage excessive financial leverage in the broad economy and add to credit bubble concerns," Moody's said.
"Given the substantial scale and growth of shadow banking activities in China, we are doubtful of the banks' ability to isolate themselves from a significant increase in defaults in the shadow banking domain."
China's banking regulator has sought to rein in non-transparent lending activities and in March ordered banks to step up checks on wealth management products as part of a bid to boost risk control and openness.
But Moody's said: "The impact from shadow banking on banks will depend on the amount and timing of losses and how they are allocated, variables that are difficult to assess at this point, given the lack of transparency and fast-evolving nature of shadow banking in China."
- AFP/fl
- wong chee tat :)
POSTED: 13 May 2013 7:36 PM
China's shadow banking activities have risen nearly 70 per cent over the past two years and now total more than half the size of the world's second-largest economy.
BEIJING: China's shadow banking activities have risen nearly 70 per cent over the past two years and now total more than half the size of the world's second-largest economy, ratings agency Moody's said on Monday.
Shadow banking includes private lending, off-balance-sheet vehicles and trusts, and allows borrowers to circumvent banks' formal underwriting standards, as well as official regulation.
Such lending has surged 67 per cent since the end of 2010, Moody's said in a report, reaching an estimated total of 29 trillion yuan (US$4.7 trillion) at the end of last year, or 55 per cent of China's GDP.
The rapid growth was partly due to some borrowers having difficulties obtaining regular bank loans, according to the report, and threatened the health of the banking system and the overall economy.
"Shadow banking may encourage excessive financial leverage in the broad economy and add to credit bubble concerns," Moody's said.
"Given the substantial scale and growth of shadow banking activities in China, we are doubtful of the banks' ability to isolate themselves from a significant increase in defaults in the shadow banking domain."
China's banking regulator has sought to rein in non-transparent lending activities and in March ordered banks to step up checks on wealth management products as part of a bid to boost risk control and openness.
But Moody's said: "The impact from shadow banking on banks will depend on the amount and timing of losses and how they are allocated, variables that are difficult to assess at this point, given the lack of transparency and fast-evolving nature of shadow banking in China."
- AFP/fl
- wong chee tat :)
Sunday, April 21, 2013
IMF steps up calls for Britain to ease austerity drive
IMF steps up calls for Britain to ease austerity drive
POSTED: 21 Apr 2013 8:59 AM
A senior member of the International Monetary Fund added to calls Saturday for Britain to slow the pace of its austerity programme, a day after the country was stripped of its triple-A rating.
LONDON: A senior member of the International Monetary Fund added to calls Saturday for Britain to slow the pace of its austerity programme, a day after the country was stripped of its triple-A rating.
David Lipton, the IMF's first deputy managing director, said the "pace of consolidation" should be reconsidered in light of the weaker than expected British economy.
Earlier this week the IMF cut Britain's growth forecast growth for this year from 1 per cent to 0.7 per cent and lowered its 2014 projection from 1.9 per cent to 1.5 per cent.
"The Fund's view is clear," Lipton told Sky News. "The UK economy has turned out to be somewhat weaker than had been foreseen, so our view is that the pace of consolidation ought to be reconsidered, and we'll want to come and have some discussions over that."
His comments come after ratings agency Fitch lowered Britain's status from AAA to AA+ on Friday, citing a "weaker economic and fiscal outlook".
In response, Britain's coalition government indicated that the downgrade would not alter the path of deep spending cuts set out by finance minister George Osborne.
Fitch's downgrade comes after rival agency Moody's stripped Britain of a triple-A debt rating on February 22, dropping it by one notch. Moody's argued that government debt was still mounting and that growth was too weak to reverse the trend before 2016.
Lipton's remarks add to the pressure from the IMF's chief economist, Olivier Blanchard, who has also urged Britain to lessen the pace of its austerity programme because of the threat of a triple-dip recession.
Official economic data out next week will show whether Britain fell into recession during the first quarter of 2013.
Lipton said it remained "very important" for the British government to continue reducing its debt.
But he added: "The question now is whether the pace is right or too ambitious given the weakness of the economy.
"The key to us, the bottom line to us, is that they may want to consider adjusting the pace of consolidation."
A spokeswoman for Britain's Treasury stressed that Britain is forecast to have stronger growth than France or Germany in 2013. Difficulties in the eurozone were "creating economic headwinds", she added.
"However, as the Chancellor said at the Budget, we are slowly but surely fixing this country's economic problems," she added.
"The deficit is down by a third, a million and a quarter new private sector jobs have been created and, because of the credibility the government has earned, families and businesses are benefiting from near-record low interest rates."
Recent official data revealed that British gross domestic product (GDP) shrank 0.3 per cent in the fourth quarter of 2012 compared with the previous three months.
Another contraction in the first quarter of 2013 would place Britain in its third recession in under four years.
- AFP/jc
- wong chee tat :)
POSTED: 21 Apr 2013 8:59 AM
A senior member of the International Monetary Fund added to calls Saturday for Britain to slow the pace of its austerity programme, a day after the country was stripped of its triple-A rating.
LONDON: A senior member of the International Monetary Fund added to calls Saturday for Britain to slow the pace of its austerity programme, a day after the country was stripped of its triple-A rating.
David Lipton, the IMF's first deputy managing director, said the "pace of consolidation" should be reconsidered in light of the weaker than expected British economy.
Earlier this week the IMF cut Britain's growth forecast growth for this year from 1 per cent to 0.7 per cent and lowered its 2014 projection from 1.9 per cent to 1.5 per cent.
"The Fund's view is clear," Lipton told Sky News. "The UK economy has turned out to be somewhat weaker than had been foreseen, so our view is that the pace of consolidation ought to be reconsidered, and we'll want to come and have some discussions over that."
His comments come after ratings agency Fitch lowered Britain's status from AAA to AA+ on Friday, citing a "weaker economic and fiscal outlook".
In response, Britain's coalition government indicated that the downgrade would not alter the path of deep spending cuts set out by finance minister George Osborne.
Fitch's downgrade comes after rival agency Moody's stripped Britain of a triple-A debt rating on February 22, dropping it by one notch. Moody's argued that government debt was still mounting and that growth was too weak to reverse the trend before 2016.
Lipton's remarks add to the pressure from the IMF's chief economist, Olivier Blanchard, who has also urged Britain to lessen the pace of its austerity programme because of the threat of a triple-dip recession.
Official economic data out next week will show whether Britain fell into recession during the first quarter of 2013.
Lipton said it remained "very important" for the British government to continue reducing its debt.
But he added: "The question now is whether the pace is right or too ambitious given the weakness of the economy.
"The key to us, the bottom line to us, is that they may want to consider adjusting the pace of consolidation."
A spokeswoman for Britain's Treasury stressed that Britain is forecast to have stronger growth than France or Germany in 2013. Difficulties in the eurozone were "creating economic headwinds", she added.
"However, as the Chancellor said at the Budget, we are slowly but surely fixing this country's economic problems," she added.
"The deficit is down by a third, a million and a quarter new private sector jobs have been created and, because of the credibility the government has earned, families and businesses are benefiting from near-record low interest rates."
Recent official data revealed that British gross domestic product (GDP) shrank 0.3 per cent in the fourth quarter of 2012 compared with the previous three months.
Another contraction in the first quarter of 2013 would place Britain in its third recession in under four years.
- AFP/jc
- wong chee tat :)
Sunday, April 7, 2013
Italy to pay 40b euros owed to business to boost growth
Italy to pay 40b euros owed to business to boost growth
The Italian government on Saturday gave its go-ahead for a bill to repay 40-billion euros in debts owed to the private sector over the next 12 months in a bid to stimulate growth.
ROME: The Italian government on Saturday gave its go-ahead for a bill to pay back 40 billion euros in debts owed to the private sector in a bid to boost businesses and stimulate growth as the country endures its longest post-war recession.
"The cabinet meeting today approved an urgent decree to pay back the debts of the public sector to the private sector," Prime Minister Mario Monti told a press conference after the talks.
The bill had been eagerly awaited by the business community in the Eurozone's third largest economy, where many companies are suffering from the slump in demand and a lack of credit from banks.
The decree recognises "the extreme importance, necessity and urgency in paying public sector debts to businesses as a precondition for an economic and labour market recovery," said Antonio Patuelli, head of the main banking lobby ABI.
The bill's timetable is for 40-billion euros (US$52 billion) in payments over one year instead of over two years, the period proposed previously -- another expected boon for businesses.
On average 215,000 companies are affected and the average debt is 422,000 euros. Some two-thirds of the debts are owed to medical companies supplying the public health sector. The payments also include the building of roads, repairs of schools etc.
Finance Minister Vittorio Grilli said that the payments could begin as early as Monday and that the oldest debts would be repaid first.
The parliament still must give final approval.
Monti said total debts were 80 billion euros at the end of 2011 and that banks estimated they had since risen to more than 100 billion euros.
"This means costs for businesses and for the whole country. It is an unacceptable situation that has taken on ever greater dimensions," Monti said.
The interim prime minister, who is in charge awaiting the formation of a new government following elections in February, said the payments would not breach the deficit threshold of 3.0 percent of GDP mandated by the European Union.
The repayment increases Italy's forecast deficit to 2.9 percent from 2.4 percent earlier, Grilli said, adding that this had been given the go-ahead by the EU since it did not constitute new spending.
The finance ministry will carry out special monitoring in September to ensure that the 3.0-percent threshold is not breached, Grilli said.
"This was very needed," Paolo Buzzetti, head of the National Association of Construction Companies, told news channel Sky TG 24.
"We can definitely go to Europe and ask to be able to go over that three-percent threshold. Other European countries have done it," he said.
But Carlo Sangalli, head of the business lobby Rete Imprese Italia, said the bill showed the government had "not understood" that the business community "risks collapse".
Sangalli said the payments should be made immediately and the procedure for obtaining payments should be made much simpler.
Monti stressed that the bill did not mean that his government was easing its budget discipline or had plans to stay in charge, adding that Saturday's cabinet meeting "could be the last one".
A general election yielded no clear winner, and the main political forces -- Pier Luigi Bersani's centre-left, Silvio Berlusconi's centre-right and a new protest party -- have failed to find an agreement to form a new government.
The economy is forecast to shrink by 1.3 percent this year, although government officials have said the result could be even worse with a contraction in gross domestic product of up to 1.7 percent.
The economy shrank by 2.4 percent in 2012.
Unemployment is close to record highs, and many Italians have been put under unprecedented pressure by successive rounds of austerity measures and tax hikes, sparking an increase in suicides by small business owners and pensioners.
- AFP/fl
- wong chee tat :)
The Italian government on Saturday gave its go-ahead for a bill to repay 40-billion euros in debts owed to the private sector over the next 12 months in a bid to stimulate growth.
ROME: The Italian government on Saturday gave its go-ahead for a bill to pay back 40 billion euros in debts owed to the private sector in a bid to boost businesses and stimulate growth as the country endures its longest post-war recession.
"The cabinet meeting today approved an urgent decree to pay back the debts of the public sector to the private sector," Prime Minister Mario Monti told a press conference after the talks.
The bill had been eagerly awaited by the business community in the Eurozone's third largest economy, where many companies are suffering from the slump in demand and a lack of credit from banks.
The decree recognises "the extreme importance, necessity and urgency in paying public sector debts to businesses as a precondition for an economic and labour market recovery," said Antonio Patuelli, head of the main banking lobby ABI.
The bill's timetable is for 40-billion euros (US$52 billion) in payments over one year instead of over two years, the period proposed previously -- another expected boon for businesses.
On average 215,000 companies are affected and the average debt is 422,000 euros. Some two-thirds of the debts are owed to medical companies supplying the public health sector. The payments also include the building of roads, repairs of schools etc.
Finance Minister Vittorio Grilli said that the payments could begin as early as Monday and that the oldest debts would be repaid first.
The parliament still must give final approval.
Monti said total debts were 80 billion euros at the end of 2011 and that banks estimated they had since risen to more than 100 billion euros.
"This means costs for businesses and for the whole country. It is an unacceptable situation that has taken on ever greater dimensions," Monti said.
The interim prime minister, who is in charge awaiting the formation of a new government following elections in February, said the payments would not breach the deficit threshold of 3.0 percent of GDP mandated by the European Union.
The repayment increases Italy's forecast deficit to 2.9 percent from 2.4 percent earlier, Grilli said, adding that this had been given the go-ahead by the EU since it did not constitute new spending.
The finance ministry will carry out special monitoring in September to ensure that the 3.0-percent threshold is not breached, Grilli said.
"This was very needed," Paolo Buzzetti, head of the National Association of Construction Companies, told news channel Sky TG 24.
"We can definitely go to Europe and ask to be able to go over that three-percent threshold. Other European countries have done it," he said.
But Carlo Sangalli, head of the business lobby Rete Imprese Italia, said the bill showed the government had "not understood" that the business community "risks collapse".
Sangalli said the payments should be made immediately and the procedure for obtaining payments should be made much simpler.
Monti stressed that the bill did not mean that his government was easing its budget discipline or had plans to stay in charge, adding that Saturday's cabinet meeting "could be the last one".
A general election yielded no clear winner, and the main political forces -- Pier Luigi Bersani's centre-left, Silvio Berlusconi's centre-right and a new protest party -- have failed to find an agreement to form a new government.
The economy is forecast to shrink by 1.3 percent this year, although government officials have said the result could be even worse with a contraction in gross domestic product of up to 1.7 percent.
The economy shrank by 2.4 percent in 2012.
Unemployment is close to record highs, and many Italians have been put under unprecedented pressure by successive rounds of austerity measures and tax hikes, sparking an increase in suicides by small business owners and pensioners.
- AFP/fl
- wong chee tat :)
Tuesday, December 18, 2012
Inflation, global slowdown biggest load on economy in 2013: analysts
Inflation, global slowdown biggest load on economy in 2013: analysts
By Linette Lim | Posted: 17 December 2012 1704 hrs
SINGAPORE: Global slowdown aside, inflation may be the biggest load on the Singapore economy next year.
And some of that pressure is self-made as the economy endures yet another go at restructuring.
Logistics, financial services and high-tech manufacturing are just some of the industries that make up Singapore's competitive external economy, which does most of its business with the rest of the world and pays top dollar for skilled labour.
Contrast that with the less efficient domestic economy, which makes use of low-cost foreign manpower to do jobs in retail, construction and cleaning.
That is Singapore's two-tiered economy, which is currently undergoing a major restructuring.
OCBC Bank's head of treasury research and strategy, Selena Ling, said: "With a very tight labour market and the indications that the foreign manpower constraints are going to remain in order to promote productivity growth, it looks like labour costs and some of the other cost elements, such as rentals, logistics, are going to remain fairly tight.
"I think we may not see as much relief on the inflation front in the near term, so this actually puts the April 2013 monetary policy review very likely to be on an unchanged footing at this juncture."
Policies that curb the use of foreign workers have contributed to higher wages.
At around 4-4.5 percent, headline inflation is more than double the historical average, boosted by other domestic factors like accommodation costs and car prices.
At the same time, turning off the flow of cheap manpower will continue to crimp growth -- something that is of no help to exports which are curtailed by weak global demand.
Nomura Singapore's executive director and Southeast Asia economist, Euben Paracuelles, said: "We have a relatively weak backdrop. In terms of how we see Europe, for example, it will still be a bigger recession in terms of our forecast and therefore, Europe still being a significant trading partner of Singapore, will pose a drag.
"Domestically, I think the government needs to manage this transition relatively well. There will be some tightening in domestic policies; labour policies will also be very tight, and that could lead to some weakness in overall investment spending."
Economists said it is unlikely that the Singapore government's stand on restructuring will change, despite the current macroeconomic headwinds.
This means that people will have to accept a lower level of economic growth now, for more sustainable growth in the future.
Growth is expected to come in at 1.5 percent this year, and between 1 and 3 percent in 2013, according to Singapore's Ministry of Trade and Industry.
RBS' vice president of economics research, Enrico Tanuwidjaja, said: "Singapore should be allowed to ride the volatility of slower growth, because externally, it is weak.
"Of course, we'll be sub-optimal, achieving growth below 3 percent this year and next. But after that, with a more diversified economy, not just from manufacturing but also from services, I'm pretty sure that growth will eventually edge higher."
Edge higher it might, but the restructuring currently underway may mean Singapore will have to adapt to a slower, long-term economic growth path.
- CNA/lp
- wong chee tat :)
By Linette Lim | Posted: 17 December 2012 1704 hrs
SINGAPORE: Global slowdown aside, inflation may be the biggest load on the Singapore economy next year.
And some of that pressure is self-made as the economy endures yet another go at restructuring.
Logistics, financial services and high-tech manufacturing are just some of the industries that make up Singapore's competitive external economy, which does most of its business with the rest of the world and pays top dollar for skilled labour.
Contrast that with the less efficient domestic economy, which makes use of low-cost foreign manpower to do jobs in retail, construction and cleaning.
That is Singapore's two-tiered economy, which is currently undergoing a major restructuring.
OCBC Bank's head of treasury research and strategy, Selena Ling, said: "With a very tight labour market and the indications that the foreign manpower constraints are going to remain in order to promote productivity growth, it looks like labour costs and some of the other cost elements, such as rentals, logistics, are going to remain fairly tight.
"I think we may not see as much relief on the inflation front in the near term, so this actually puts the April 2013 monetary policy review very likely to be on an unchanged footing at this juncture."
Policies that curb the use of foreign workers have contributed to higher wages.
At around 4-4.5 percent, headline inflation is more than double the historical average, boosted by other domestic factors like accommodation costs and car prices.
At the same time, turning off the flow of cheap manpower will continue to crimp growth -- something that is of no help to exports which are curtailed by weak global demand.
Nomura Singapore's executive director and Southeast Asia economist, Euben Paracuelles, said: "We have a relatively weak backdrop. In terms of how we see Europe, for example, it will still be a bigger recession in terms of our forecast and therefore, Europe still being a significant trading partner of Singapore, will pose a drag.
"Domestically, I think the government needs to manage this transition relatively well. There will be some tightening in domestic policies; labour policies will also be very tight, and that could lead to some weakness in overall investment spending."
Economists said it is unlikely that the Singapore government's stand on restructuring will change, despite the current macroeconomic headwinds.
This means that people will have to accept a lower level of economic growth now, for more sustainable growth in the future.
Growth is expected to come in at 1.5 percent this year, and between 1 and 3 percent in 2013, according to Singapore's Ministry of Trade and Industry.
RBS' vice president of economics research, Enrico Tanuwidjaja, said: "Singapore should be allowed to ride the volatility of slower growth, because externally, it is weak.
"Of course, we'll be sub-optimal, achieving growth below 3 percent this year and next. But after that, with a more diversified economy, not just from manufacturing but also from services, I'm pretty sure that growth will eventually edge higher."
Edge higher it might, but the restructuring currently underway may mean Singapore will have to adapt to a slower, long-term economic growth path.
- CNA/lp
- wong chee tat :)
Wednesday, November 21, 2012
More Asian companies turning to bond market
More Asian companies turning to bond market
By Thomas Cho | Posted: 20 November 2012 2116 hrs
SINGAPORE: More Asian companies are turning to the bond market for a cheaper source of long-term financing.
This following rising liquidity in the region as major central banks in the United States, Europe and Japan undertake quantitative easing measures.
Bonds issued in Asia, excluding Australia and Japan, have increased some 55 percent from US$461 billion in the first 10 months of 2011 to US$706 billion till end of October this year.
Looking ahead, rising investor demand for safe assets will boost the Asian bond market further.
Debt financing through corporate bonds has been mostly popular among companies in South Korea and Japan.
Analysts said the trend has now caught on with Southeast Asian firms.
Bond issuance in local currency has grown 26 per cent in Indonesia and over 18 percent in the Philippines and Singapore in the second quarter of 2012 year-on-year.
And among the big players are companies in the energy, transportation, and real estate sectors.
Big issues include Genting Singapore's S$1.8 billion perpetual bonds at 5.125 percent, as well as several notes by OCBC and DBS.
Adam McCabe, Senior Portfolio Manager, Asian Fixed Income, Aberdeen Asset Management Asia, said: "From an investor's perspective, Southeast Asia has a very mature market relative to some of the more immature and developing markets. If you look at Singapore particularly, the sovereign rating is triple A. That is one of the very few triple A rated sovereign in the world."
With growing economic uncertainty, analysts said more investors are turning to safe assets like bonds.
Rising inflation is also a concern as investments in risky assets may yield negative real returns after adjusting for inflation.
Lenny Feder, Group Head of Wholesale Banking Management Group at Standard Chartered Bank, said: "People are risk-adversity these days. So, they have a lot of money sitting in cash. Cash in the bank account isn't earning very much at all. So, on a relative basis, a bond may be a more attractive investment. But, in addition, if you are going to invest in bonds globally, then will you rather be investing in Asia where there is a lot of growth potential versus the West, where there is less?"
Islamic bonds are now becoming popular as well in the region.
These bonds that do not pay coupon interest are likely to be in hot demand by cash-rich Middle Eastern investors.
Such bonds issued in Asia, excluding Australia and Japan, jumped 17 percent to US$17 billion in the first 10 months of 2012.
Sean Chang, Head of Asian Debt Investment at Baring Asset Management (Asia), said: "The yield differentiate in this region is still attractive and not mentioning currency wise, the outlook is also very positive. With the much better fundamentals in this part of the region, we saw Indonesia got upgraded earlier this year."
Singapore-listed Golden Agri-Resources has recently raised US$490 million from selling five-year Islamic medium-term notes, called sukuk.
- CNA/de
- wong chee tat :)
By Thomas Cho | Posted: 20 November 2012 2116 hrs
SINGAPORE: More Asian companies are turning to the bond market for a cheaper source of long-term financing.
This following rising liquidity in the region as major central banks in the United States, Europe and Japan undertake quantitative easing measures.
Bonds issued in Asia, excluding Australia and Japan, have increased some 55 percent from US$461 billion in the first 10 months of 2011 to US$706 billion till end of October this year.
Looking ahead, rising investor demand for safe assets will boost the Asian bond market further.
Debt financing through corporate bonds has been mostly popular among companies in South Korea and Japan.
Analysts said the trend has now caught on with Southeast Asian firms.
Bond issuance in local currency has grown 26 per cent in Indonesia and over 18 percent in the Philippines and Singapore in the second quarter of 2012 year-on-year.
And among the big players are companies in the energy, transportation, and real estate sectors.
Big issues include Genting Singapore's S$1.8 billion perpetual bonds at 5.125 percent, as well as several notes by OCBC and DBS.
Adam McCabe, Senior Portfolio Manager, Asian Fixed Income, Aberdeen Asset Management Asia, said: "From an investor's perspective, Southeast Asia has a very mature market relative to some of the more immature and developing markets. If you look at Singapore particularly, the sovereign rating is triple A. That is one of the very few triple A rated sovereign in the world."
With growing economic uncertainty, analysts said more investors are turning to safe assets like bonds.
Rising inflation is also a concern as investments in risky assets may yield negative real returns after adjusting for inflation.
Lenny Feder, Group Head of Wholesale Banking Management Group at Standard Chartered Bank, said: "People are risk-adversity these days. So, they have a lot of money sitting in cash. Cash in the bank account isn't earning very much at all. So, on a relative basis, a bond may be a more attractive investment. But, in addition, if you are going to invest in bonds globally, then will you rather be investing in Asia where there is a lot of growth potential versus the West, where there is less?"
Islamic bonds are now becoming popular as well in the region.
These bonds that do not pay coupon interest are likely to be in hot demand by cash-rich Middle Eastern investors.
Such bonds issued in Asia, excluding Australia and Japan, jumped 17 percent to US$17 billion in the first 10 months of 2012.
Sean Chang, Head of Asian Debt Investment at Baring Asset Management (Asia), said: "The yield differentiate in this region is still attractive and not mentioning currency wise, the outlook is also very positive. With the much better fundamentals in this part of the region, we saw Indonesia got upgraded earlier this year."
Singapore-listed Golden Agri-Resources has recently raised US$490 million from selling five-year Islamic medium-term notes, called sukuk.
- CNA/de
- wong chee tat :)
Wednesday, November 14, 2012
新电信季度净利跌1.6%
Tuesday, November 13, 2012
REITs still viewed as attractive investments
REITs still viewed as attractive investments
By Lynda Hong | Posted: 12 November 2012 2345 hrs
SINGAPORE : Singapore Real Estate Investment Trusts (S-REITs) have outperformed the STI significantly as at end-October this year.
And some investors are expecting the good run to continue, driven by capital inflows from stimulus measures in the US.
But some analysts warn that the performance of S-REITs may have peaked.
Market volatility and economic uncertainties are expected to continue to drive demand for REITS which are seen to be less risky and provide steady returns at the same time.
According to OCBC Investment Research, the FTSE ST REIT Index has outperformed the STI by 11 percent since September 13.
That's when US Federal Reserve announced the third round of quantitative easing (QE3).
Prior to the Fed announcement, analysts say the FTSE ST REIT Index was six percent higher than the STI since the beginning of 2012.
Eli Lee, Investment analyst, OCBC Investment Research, said: "QE3 has brought about a greater magnitude to a present trend we are seeing today. The yield for the sector is still very attractive at 6.1 percent. And also on a relative basis to say 10-year Treasury yields. The unique thing is that S-REITs have a very attractive spread relative to our 10-year government yield rates, hovering above 450 to 470 basis points, which is a significantly larger spread to other similar markets like Hong Kong or Japan."
Analysts expect the Federal Reserve to press on with its efforts to spur growth in the US by keeping a loose monetary policy.
And that could see more capital inflows into both REITs and the property market in Singapore.
In fact, a recent survey conducted by the Real Estate Developers' Association of Singapore showed that nearly 7 in 10 respondents believe more funds will flow into REITS as a result of QE3.
But analysts say performance of REITS may have peaked as higher share prices continue to compress yields.
They add that rising construction costs and property prices also make it harder for REIT managers to look for ways to grow.
Roger Tan, CEO of SIAS Research, said: "REITs have enjoyed good times in 2012, it may just be a stable dividend yield, stable capital gain. (In 2013) probably zero capital gain or small capital gain, considering their ability to generate more or higher revenues and (with) M&A activities now a lot lower. So I think investors may flow funds into physical property instead of the REITs itself."
Still, analysts say S-REITS present an attractive investment proposition with average yields of 5 to 6 percent compared to other investments.
In a report out last month, Credit Suisse said within the S-REIT space, retail REITs have the most resilient fundamentals as their rentals and occupancies tend to hold up better than those in the industrial segment.
- CNA/ch
By Lynda Hong | Posted: 12 November 2012 2345 hrs
SINGAPORE : Singapore Real Estate Investment Trusts (S-REITs) have outperformed the STI significantly as at end-October this year.
And some investors are expecting the good run to continue, driven by capital inflows from stimulus measures in the US.
But some analysts warn that the performance of S-REITs may have peaked.
Market volatility and economic uncertainties are expected to continue to drive demand for REITS which are seen to be less risky and provide steady returns at the same time.
According to OCBC Investment Research, the FTSE ST REIT Index has outperformed the STI by 11 percent since September 13.
That's when US Federal Reserve announced the third round of quantitative easing (QE3).
Prior to the Fed announcement, analysts say the FTSE ST REIT Index was six percent higher than the STI since the beginning of 2012.
Eli Lee, Investment analyst, OCBC Investment Research, said: "QE3 has brought about a greater magnitude to a present trend we are seeing today. The yield for the sector is still very attractive at 6.1 percent. And also on a relative basis to say 10-year Treasury yields. The unique thing is that S-REITs have a very attractive spread relative to our 10-year government yield rates, hovering above 450 to 470 basis points, which is a significantly larger spread to other similar markets like Hong Kong or Japan."
Analysts expect the Federal Reserve to press on with its efforts to spur growth in the US by keeping a loose monetary policy.
And that could see more capital inflows into both REITs and the property market in Singapore.
In fact, a recent survey conducted by the Real Estate Developers' Association of Singapore showed that nearly 7 in 10 respondents believe more funds will flow into REITS as a result of QE3.
But analysts say performance of REITS may have peaked as higher share prices continue to compress yields.
They add that rising construction costs and property prices also make it harder for REIT managers to look for ways to grow.
Roger Tan, CEO of SIAS Research, said: "REITs have enjoyed good times in 2012, it may just be a stable dividend yield, stable capital gain. (In 2013) probably zero capital gain or small capital gain, considering their ability to generate more or higher revenues and (with) M&A activities now a lot lower. So I think investors may flow funds into physical property instead of the REITs itself."
Still, analysts say S-REITS present an attractive investment proposition with average yields of 5 to 6 percent compared to other investments.
In a report out last month, Credit Suisse said within the S-REIT space, retail REITs have the most resilient fundamentals as their rentals and occupancies tend to hold up better than those in the industrial segment.
- CNA/ch
Monday, November 12, 2012
S'pore needs to restructure economy to sustain growth: Tharman
S'pore needs to restructure economy to sustain growth: Tharman
Posted: 11 November 2012 2350 hrs
SINGAPORE: Deputy Prime Minister Tharman Shanmugaratnam said Singapore's economic growth will be weak in the short-term mainly because of the gloomy world economy.
And the challenge for Singapore, he said, is to restructure its economy to ensure sustained growth over the long-term.
Mr Tharman, who's also Finance Minister, was speaking to reporters on the sidelines of a community event in his Jurong GRC.
Many countries in the world are now bracing themselves for the possibility of a "fiscal cliff" in the US.
This means a huge economic crisis may be looming for the US - if its deeply divided Congress is not able to come to an agreement.
Congress, which is made up of the House of Representatives and Senate, will still be controlled by two parties in the new Obama administration.
The Republicans regained control of the House, while the Senate is dominated by the Democrats.
Mr Tharman pointed out that even if the US gets past this hurdle, the bigger challenge is to put its mid-term budget on a more sustainable path for the years ahead in order to restore investor confidence.
He said: "That's what's necessary to really get the economy to restart. And it requires common ground to be found on both taxes and spending on the parts of the Democrats and the Republicans.
"The experience of the first term was one of intense partisanship. Hopefully in the second term, there will be a willingness to find common ground. The initial signs are positive but it's too early to say."
The effects of sluggish growth in the US and Eurozone are likely to cascade to Singapore, even though Mr Tharman said Asia continues to do reasonably well.
"Demand will be weak, but our real challenge in Singapore is in restructuring our economy. We've got to persevere in restructuring our economy so that we can get sustained growth over the long term, over the next five to 10 years based on productivity growth. That's the big challenge. Demand will be weak in the short term but it's not a fundamental problem for us because our unemployment rate is low, and that's the bottom line of the short-term. Unemployment rate is low, jobs are available and training places are available. Our real challenge therefore is to focus on restructuring our economy so that we can move one whole level higher - productivity, skills, expertise," Mr Tharman shared.
He said this means using management methods and technology to improve efficiency and productivity so that workers can get paid more.
"They can have more satisfying jobs and we can grow our economy without growing employment year after year, especially foreign employment. So we got to find the right balance. It's something that affects every sector of the economy. And, we look at the most developed countries and we can see how it's done. They too went through that transition. In some cases not very long ago, they went through the same transition. They ramp up on labour and they have to upgrade, do with less labour, but using technology and everyone playing that part, including customers, everyone playing that part. You can move up to a higher level. That way, our workers can get good wages, get good jobs," he said.
Mr Tharman added that the government will provide every form of support to help companies, especially small and medium enterprises, to make this transition.
- CNA/ck
- wong chee tat :)
Posted: 11 November 2012 2350 hrs
SINGAPORE: Deputy Prime Minister Tharman Shanmugaratnam said Singapore's economic growth will be weak in the short-term mainly because of the gloomy world economy.
And the challenge for Singapore, he said, is to restructure its economy to ensure sustained growth over the long-term.
Mr Tharman, who's also Finance Minister, was speaking to reporters on the sidelines of a community event in his Jurong GRC.
Many countries in the world are now bracing themselves for the possibility of a "fiscal cliff" in the US.
This means a huge economic crisis may be looming for the US - if its deeply divided Congress is not able to come to an agreement.
Congress, which is made up of the House of Representatives and Senate, will still be controlled by two parties in the new Obama administration.
The Republicans regained control of the House, while the Senate is dominated by the Democrats.
Mr Tharman pointed out that even if the US gets past this hurdle, the bigger challenge is to put its mid-term budget on a more sustainable path for the years ahead in order to restore investor confidence.
He said: "That's what's necessary to really get the economy to restart. And it requires common ground to be found on both taxes and spending on the parts of the Democrats and the Republicans.
"The experience of the first term was one of intense partisanship. Hopefully in the second term, there will be a willingness to find common ground. The initial signs are positive but it's too early to say."
The effects of sluggish growth in the US and Eurozone are likely to cascade to Singapore, even though Mr Tharman said Asia continues to do reasonably well.
"Demand will be weak, but our real challenge in Singapore is in restructuring our economy. We've got to persevere in restructuring our economy so that we can get sustained growth over the long term, over the next five to 10 years based on productivity growth. That's the big challenge. Demand will be weak in the short term but it's not a fundamental problem for us because our unemployment rate is low, and that's the bottom line of the short-term. Unemployment rate is low, jobs are available and training places are available. Our real challenge therefore is to focus on restructuring our economy so that we can move one whole level higher - productivity, skills, expertise," Mr Tharman shared.
He said this means using management methods and technology to improve efficiency and productivity so that workers can get paid more.
"They can have more satisfying jobs and we can grow our economy without growing employment year after year, especially foreign employment. So we got to find the right balance. It's something that affects every sector of the economy. And, we look at the most developed countries and we can see how it's done. They too went through that transition. In some cases not very long ago, they went through the same transition. They ramp up on labour and they have to upgrade, do with less labour, but using technology and everyone playing that part, including customers, everyone playing that part. You can move up to a higher level. That way, our workers can get good wages, get good jobs," he said.
Mr Tharman added that the government will provide every form of support to help companies, especially small and medium enterprises, to make this transition.
- CNA/ck
- wong chee tat :)
尚达曼：短期内我国经济增长将会变得疲弱
11/11/2012
尚达曼：短期内我国经济增长将会变得疲弱
副总理尚达曼说：受环球经济低迷影响，短期内我国经济增长将会变得疲弱。
也是财政部长的尚达曼在出席裕廊集选区的社区活动时，告诉媒体：如何重组我国经济，确保能取得长期和持续的增长，将是我国面对的挑战。
目前，许多国家正在为美国可能出现的"财政悬崖"做好准备，担心由民主党和共和党分别控制的参众两院无法对财政预算达成共识。
尚达曼指出：即使美国成功克服这项挑战，更为严峻的问题是如何制定更具持续性的中期预算，以便恢复投资者的信心。他说：尽管亚洲经济表现出色，但美国和欧元区的疲弱经济增长，肯定会影响我国。
尚达曼说：短期内，需求会显得疲弱，不过这对我国来说问题不大，因为本地的失业率偏低。我国面对的真正挑战是如何重组经济，进一步提高生产力、技能和专业知识。
他指出，这意味着当局必须通过管理手段和科技，提高效率和生产力，以便让员工能赚取更高的收入。
尚达曼说：这样国人就能拥有让他们感到满足的工作，同时我国经济又能在无需每年取得就业增长，尤其是外国人力就业增长的情况下，继续发展。我国必须在这当中取得平衡。多数发达国家已经完成这个过渡期。
他也强调：政府将为企业，尤其是中小型企业提供各种支持，协助他们度过这个过渡期。
- wong chee tat :)
尚达曼：短期内我国经济增长将会变得疲弱
副总理尚达曼说：受环球经济低迷影响，短期内我国经济增长将会变得疲弱。
也是财政部长的尚达曼在出席裕廊集选区的社区活动时，告诉媒体：如何重组我国经济，确保能取得长期和持续的增长，将是我国面对的挑战。
目前，许多国家正在为美国可能出现的"财政悬崖"做好准备，担心由民主党和共和党分别控制的参众两院无法对财政预算达成共识。
尚达曼指出：即使美国成功克服这项挑战，更为严峻的问题是如何制定更具持续性的中期预算，以便恢复投资者的信心。他说：尽管亚洲经济表现出色，但美国和欧元区的疲弱经济增长，肯定会影响我国。
尚达曼说：短期内，需求会显得疲弱，不过这对我国来说问题不大，因为本地的失业率偏低。我国面对的真正挑战是如何重组经济，进一步提高生产力、技能和专业知识。
他指出，这意味着当局必须通过管理手段和科技，提高效率和生产力，以便让员工能赚取更高的收入。
尚达曼说：这样国人就能拥有让他们感到满足的工作，同时我国经济又能在无需每年取得就业增长，尤其是外国人力就业增长的情况下，继续发展。我国必须在这当中取得平衡。多数发达国家已经完成这个过渡期。
他也强调：政府将为企业，尤其是中小型企业提供各种支持，协助他们度过这个过渡期。
- wong chee tat :)
Wednesday, October 31, 2012
S'pore economy likely to have "below potential" growth in 2013: MAS
S'pore economy likely to have "below potential" growth in 2013: MAS
By Linette Lim | Posted: 30 October 2012 2129 hrs
SINGAPORE: Singapore's economy may likely see another year of "below potential" growth in 2013, according to the Monetary Authority of Singapore (MAS) in its half-yearly macroeconomic review.
MAS said the economy is under pressure from two fronts -- weak export demand globally, and rising business costs due to domestic restructuring.
Large scale public projects such as the construction of the Downtown Line and new Build-To-Order flats have helped cushion Singapore from the global downturn.
Such domestic-oriented activities contributed to almost 70 per cent of economic growth in the first half of the year, even though it only accounts for a third of Singapore's GDP.
Still, that is not enough to fully offset the slowdown in the trade-related activities, the IT cluster, and regionally-exposed services.
Saktiandi Supaat, head of FX Research (Global Markets) at Maybank, said: "Growth is about one to three per cent next year for Singapore. Potential growth, as you know, MAS has always highlighted that it is about three to five per cent, and still maintains that three to five per cent potential growth.
"So there may be some upside to that one to three per cent if things work out in the second half."
For this year, the central bank is sticking to its projection that Singapore will grow 1.5 per cent to 2.5 per cent.
The cyclical downturn in the world economy -- especially in advanced nations -- is affecting Singapore at a time when it is undergoing domestic restructuring.
Jimmy Koh, head of Economics (Treasury Research) at UOB, said: "Liquidity has pushed up asset prices, pushed up CPI and is likely to remain so. At the same time you're trying to restructure your economy to enhance productivity and some sort of wage increase is being seen, (as we are) cutting down our reliance on foreign workers. So you have a lot of moving parts all coming at the same time."
MAS said that "it is important for medium-term restructuring in the domestic economy to proceed even as Singapore faces short-term cyclical headwinds."
Domestic restructuring, which saw the tightening of foreign worker policies, has boosted demand for local workers in the low- and mid-skilled segments, especially in domestic industries like construction and services.
MAS said unit labour costs could rise by as much as three to four per cent in 2013, following the four to five per cent increase this year -- which in turn could be passed on to consumers.
As a result, the sequential increase in core prices, while unlikely to reach the highs in early 2012, is expected to pick up, driving core inflation which excludes accommodation and private road transport, to the range of two to three per cent in 2013, from 2.5 per cent this year.
At the same time, CPI-All Items inflation is expected to ease from slightly above 4.5 per cent to the 3.5 to 4.5 per cent range next year.
-CNA/ac
- wong chee tat :)
By Linette Lim | Posted: 30 October 2012 2129 hrs
SINGAPORE: Singapore's economy may likely see another year of "below potential" growth in 2013, according to the Monetary Authority of Singapore (MAS) in its half-yearly macroeconomic review.
MAS said the economy is under pressure from two fronts -- weak export demand globally, and rising business costs due to domestic restructuring.
Large scale public projects such as the construction of the Downtown Line and new Build-To-Order flats have helped cushion Singapore from the global downturn.
Such domestic-oriented activities contributed to almost 70 per cent of economic growth in the first half of the year, even though it only accounts for a third of Singapore's GDP.
Still, that is not enough to fully offset the slowdown in the trade-related activities, the IT cluster, and regionally-exposed services.
Saktiandi Supaat, head of FX Research (Global Markets) at Maybank, said: "Growth is about one to three per cent next year for Singapore. Potential growth, as you know, MAS has always highlighted that it is about three to five per cent, and still maintains that three to five per cent potential growth.
"So there may be some upside to that one to three per cent if things work out in the second half."
For this year, the central bank is sticking to its projection that Singapore will grow 1.5 per cent to 2.5 per cent.
The cyclical downturn in the world economy -- especially in advanced nations -- is affecting Singapore at a time when it is undergoing domestic restructuring.
Jimmy Koh, head of Economics (Treasury Research) at UOB, said: "Liquidity has pushed up asset prices, pushed up CPI and is likely to remain so. At the same time you're trying to restructure your economy to enhance productivity and some sort of wage increase is being seen, (as we are) cutting down our reliance on foreign workers. So you have a lot of moving parts all coming at the same time."
MAS said that "it is important for medium-term restructuring in the domestic economy to proceed even as Singapore faces short-term cyclical headwinds."
Domestic restructuring, which saw the tightening of foreign worker policies, has boosted demand for local workers in the low- and mid-skilled segments, especially in domestic industries like construction and services.
MAS said unit labour costs could rise by as much as three to four per cent in 2013, following the four to five per cent increase this year -- which in turn could be passed on to consumers.
As a result, the sequential increase in core prices, while unlikely to reach the highs in early 2012, is expected to pick up, driving core inflation which excludes accommodation and private road transport, to the range of two to three per cent in 2013, from 2.5 per cent this year.
At the same time, CPI-All Items inflation is expected to ease from slightly above 4.5 per cent to the 3.5 to 4.5 per cent range next year.
-CNA/ac
- wong chee tat :)
Saturday, November 7, 2009
What recovery? Unemployment shoots past 10 percent
What recovery? Unemployment shoots past 10 percent
AP
By JEANNINE AVERSA and CHRISTOPHER S. RUGABER, AP Economics Writers Jeannine Aversa And Christopher S. Rugaber, Ap Economics Writers – Fri Nov 6, 6:39 pm ET
WASHINGTON – Just when it was beginning to look a little better, the economy relapsed Friday with a return to double-digit unemployment for only the second time since World War II and warnings that next year will be even worse than previously thought.
The jobless rate rocketed to 10.2 percent in October, the highest since early 1983, dealing a psychological blow to Americans as they prepare holiday shopping lists. It was another worse-than-expected report casting a shadow over the struggling recovery.
President Barack Obama called it "a sobering number that underscores the economic challenges that lie ahead." He signed a measure to extend unemployment benefits and to expand a tax credit for homebuyers.
Economists had not expected the 10 percent mark to come so quickly and immediately darkened their forecasts. Mark Zandi, chief economist at Moody's Economy.com, and Joshua Shapiro, chief U.S. economist at MFR Inc., predicted the rate will peak at 11 percent by mid-2010. They earlier had projected 10.5 percent.
Unemployment at 11 percent would be a post-World War II record. Only once since then has joblessness hit double digits in the United States — from September 1982 to July 1983, topping out at 10.8 percent.
"It's not a good report," said Dan Greenhaus, chief economic strategist for New York-based investment firm Miller Tabak & Co. "What we're seeing is a validation of the idea that a jobless recovery is perfectly on track."
The Labor Department, using a survey of company payrolls, said the economy shed 190,000 jobs in October. A separate survey of households found 558,000 more people were unemployed last month than in September. Some 15.7 million Americans are out of work.
The survey of companies doesn't count the self-employed and undercounts employees of small businesses. So the economic picture could be even more dire.
One struggling small business, homebuilder Miller and Smith Inc. of McLean, Va., has trimmed its work force to about 100 from 350 at the height of the housing market in 2005. The company has been hurt by a slowdown in building and surging health care costs.
Troubles for small businesses could have a disproportionate effect on the economy, because they account for about 60 percent of the nation's jobs. They tend to rely on credit cards and home equity lines — both of which banks have tightened — for cash flow.
And the unemployment rate doesn't include people without jobs who have stopped looking, or those who have settled for part-time jobs. Counting those people, the unemployment rate would be 17.5 percent, the highest since at least 1994.
Economists had expected unemployment to rise to no more than 9.9 percent, up just a tick from September's 9.8 percent, and the surprising jump added to fears that the recovery could fizzle if Americans don't spend.
Already, consumer confidence for October came in well below what analysts were expecting. Shoppers' sentiments about the state of the economy are the gloomiest in nearly three decades.
Stores, always with an eye on holiday sales, are especially worried this year.
"This is a situation where the recovery balloon is getting off the ground but might not have enough power to keep rising," said Brian Bethune, economist at IHS Global Insight.
Sitting at a St. Louis unemployment center, Paul Branyon, who was laid off in July from a Williams-Sonoma factory in Tennessee and now lives with relatives, shook his head and laughed at the notion that the recession is over.
"It's getting actually harder right now," the 26-year-old said. "It seems like everywhere you go, people are losing jobs. People are cutting back. So it's going to get harder before it gets easier."
The economy actually grew from July to September for the first time in a year, but that's no consolation for people like Jose Betancourt, 57, who goes to a Miami-area career center twice a week to take computer education classes.
Betancourt has been out of work since July, when he was laid off from his supermarket maintenance job. He lives on about $600 a month in unemployment benefits, barely enough for the rent for his efficiency apartment, food and utilities.
He has trouble believing the recession is over. In his neighborhood, he sees other jobless people and empty stores.
"It's as if they just gave the economy a nice coat of varnish to make everyone feel better," he said. "I'm in a state of anxiety, and I see it all around Miami."
The worst recession since the 1930s may be over, but the recovery isn't expected to be strong enough to stem job losses and get businesses hiring again. And the unemployed are staying out of work longer. The count of people jobless for six months or longer stands at a record 5.6 million.
As for employers, few are confident enough in the recovery to hire. Art McKeen, plant manager of the Baldor Electric Co. factory in suburban St. Louis, says the plant has no plans add workers any time soon.
Baldor cut back production last year and put workers on part-time hours rather than lay them off. Orders have picked up again, but not enough to justify hiring. "We don't have the need for them right now," McKeen said.
Prospects that the government might pass a second stimulus bill appear dim. Congress is already grappling with sweeping health care legislation, raising concerns about further swelling the federal deficit.
"More debt, more spending ... clearly has not worked — particularly in a time of double-digit unemployment," said Senate Republican leader Mitch McConnell of Kentucky. Democrats said the economy would have been in worse shape without the first stimulus.
October was the 22nd straight month the U.S. economy has lost jobs, the longest on record dating back 70 years. Losses at factories, construction companies, retailers and financial services companies far outweighed gains in education and health care, professional and business services and elsewhere. Government payrolls were flat.
One faint sign of hope: Temporary employment grew by 33,700 jobs, its third straight month of gains after steep losses earlier this year. Employers are likely to add temporary workers before hiring permanent ones.
Chris Rupkey, an economist at the Bank of Tokyo-Mitsubishi, called the big jump in the jobless rate "a kick in the stomach" and predicted a slog ahead. It could take at least four years for the jobless rate to drop to more normal levels of 5 or 6 percent.
"The last two recoveries from recession in the '90s and 2001 were jobless, and this one is clearly headed down the same road," he said.
___
Associated Press Writers Jim Kuhnhenn and Anne Flaherty in Washington, Emily Fredrix in Milwaukee, Christopher Leonard in St. Louis, Adrian Sainz in Miami, Andrew Vanacore in New York and Tom Murphy in Indianapolis contributed to this report.
This is not a piece of good news. What will happen over here in Singapore?
- wong chee tat :)
AP
By JEANNINE AVERSA and CHRISTOPHER S. RUGABER, AP Economics Writers Jeannine Aversa And Christopher S. Rugaber, Ap Economics Writers – Fri Nov 6, 6:39 pm ET
WASHINGTON – Just when it was beginning to look a little better, the economy relapsed Friday with a return to double-digit unemployment for only the second time since World War II and warnings that next year will be even worse than previously thought.
The jobless rate rocketed to 10.2 percent in October, the highest since early 1983, dealing a psychological blow to Americans as they prepare holiday shopping lists. It was another worse-than-expected report casting a shadow over the struggling recovery.
President Barack Obama called it "a sobering number that underscores the economic challenges that lie ahead." He signed a measure to extend unemployment benefits and to expand a tax credit for homebuyers.
Economists had not expected the 10 percent mark to come so quickly and immediately darkened their forecasts. Mark Zandi, chief economist at Moody's Economy.com, and Joshua Shapiro, chief U.S. economist at MFR Inc., predicted the rate will peak at 11 percent by mid-2010. They earlier had projected 10.5 percent.
Unemployment at 11 percent would be a post-World War II record. Only once since then has joblessness hit double digits in the United States — from September 1982 to July 1983, topping out at 10.8 percent.
"It's not a good report," said Dan Greenhaus, chief economic strategist for New York-based investment firm Miller Tabak & Co. "What we're seeing is a validation of the idea that a jobless recovery is perfectly on track."
The Labor Department, using a survey of company payrolls, said the economy shed 190,000 jobs in October. A separate survey of households found 558,000 more people were unemployed last month than in September. Some 15.7 million Americans are out of work.
The survey of companies doesn't count the self-employed and undercounts employees of small businesses. So the economic picture could be even more dire.
One struggling small business, homebuilder Miller and Smith Inc. of McLean, Va., has trimmed its work force to about 100 from 350 at the height of the housing market in 2005. The company has been hurt by a slowdown in building and surging health care costs.
Troubles for small businesses could have a disproportionate effect on the economy, because they account for about 60 percent of the nation's jobs. They tend to rely on credit cards and home equity lines — both of which banks have tightened — for cash flow.
And the unemployment rate doesn't include people without jobs who have stopped looking, or those who have settled for part-time jobs. Counting those people, the unemployment rate would be 17.5 percent, the highest since at least 1994.
Economists had expected unemployment to rise to no more than 9.9 percent, up just a tick from September's 9.8 percent, and the surprising jump added to fears that the recovery could fizzle if Americans don't spend.
Already, consumer confidence for October came in well below what analysts were expecting. Shoppers' sentiments about the state of the economy are the gloomiest in nearly three decades.
Stores, always with an eye on holiday sales, are especially worried this year.
"This is a situation where the recovery balloon is getting off the ground but might not have enough power to keep rising," said Brian Bethune, economist at IHS Global Insight.
Sitting at a St. Louis unemployment center, Paul Branyon, who was laid off in July from a Williams-Sonoma factory in Tennessee and now lives with relatives, shook his head and laughed at the notion that the recession is over.
"It's getting actually harder right now," the 26-year-old said. "It seems like everywhere you go, people are losing jobs. People are cutting back. So it's going to get harder before it gets easier."
The economy actually grew from July to September for the first time in a year, but that's no consolation for people like Jose Betancourt, 57, who goes to a Miami-area career center twice a week to take computer education classes.
Betancourt has been out of work since July, when he was laid off from his supermarket maintenance job. He lives on about $600 a month in unemployment benefits, barely enough for the rent for his efficiency apartment, food and utilities.
He has trouble believing the recession is over. In his neighborhood, he sees other jobless people and empty stores.
"It's as if they just gave the economy a nice coat of varnish to make everyone feel better," he said. "I'm in a state of anxiety, and I see it all around Miami."
The worst recession since the 1930s may be over, but the recovery isn't expected to be strong enough to stem job losses and get businesses hiring again. And the unemployed are staying out of work longer. The count of people jobless for six months or longer stands at a record 5.6 million.
As for employers, few are confident enough in the recovery to hire. Art McKeen, plant manager of the Baldor Electric Co. factory in suburban St. Louis, says the plant has no plans add workers any time soon.
Baldor cut back production last year and put workers on part-time hours rather than lay them off. Orders have picked up again, but not enough to justify hiring. "We don't have the need for them right now," McKeen said.
Prospects that the government might pass a second stimulus bill appear dim. Congress is already grappling with sweeping health care legislation, raising concerns about further swelling the federal deficit.
"More debt, more spending ... clearly has not worked — particularly in a time of double-digit unemployment," said Senate Republican leader Mitch McConnell of Kentucky. Democrats said the economy would have been in worse shape without the first stimulus.
October was the 22nd straight month the U.S. economy has lost jobs, the longest on record dating back 70 years. Losses at factories, construction companies, retailers and financial services companies far outweighed gains in education and health care, professional and business services and elsewhere. Government payrolls were flat.
One faint sign of hope: Temporary employment grew by 33,700 jobs, its third straight month of gains after steep losses earlier this year. Employers are likely to add temporary workers before hiring permanent ones.
Chris Rupkey, an economist at the Bank of Tokyo-Mitsubishi, called the big jump in the jobless rate "a kick in the stomach" and predicted a slog ahead. It could take at least four years for the jobless rate to drop to more normal levels of 5 or 6 percent.
"The last two recoveries from recession in the '90s and 2001 were jobless, and this one is clearly headed down the same road," he said.
___
Associated Press Writers Jim Kuhnhenn and Anne Flaherty in Washington, Emily Fredrix in Milwaukee, Christopher Leonard in St. Louis, Adrian Sainz in Miami, Andrew Vanacore in New York and Tom Murphy in Indianapolis contributed to this report.
This is not a piece of good news. What will happen over here in Singapore?
- wong chee tat :)
Friday, November 6, 2009
US jobless rate hits 10.2% as 190,000 jobs lost
US jobless rate hits 10.2% as 190,000 jobs lost
WASHINGTON - US unemployment rate shot up to 10.2 percent in October as another 190,000 jobs were shed, the Labor Department said Friday.
The report highlighted ongoing struggles in the labor market: the jobless rate was the highest since 1983 but the number of jobs lost narrowed to the lowest level in over a year.
Overall, the Labor Department monthly report - one of the best indicators of
economic momentum - was worse than expectations for a 10 percent jobless rate and 175,000 job losses.
- AFP/ir
- wong chee tat :)
WASHINGTON - US unemployment rate shot up to 10.2 percent in October as another 190,000 jobs were shed, the Labor Department said Friday.
The report highlighted ongoing struggles in the labor market: the jobless rate was the highest since 1983 but the number of jobs lost narrowed to the lowest level in over a year.
Overall, the Labor Department monthly report - one of the best indicators of
economic momentum - was worse than expectations for a 10 percent jobless rate and 175,000 job losses.
- AFP/ir
- wong chee tat :)
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