SOME 6,000 housing board flats are expected to be offered for sale in the first half of this year, Parliament was told yesterday. Minister of State for National Development Grace Fu said this matches the sales pace seen in the same period last year. For the whole of 2007, HDB sales programme offered 13,000 flats – […]
Archive | January, 2008
YESTERDAY IN PARLIAMENT: GST hike adds $990m to govt revenue so far
$1.17b budgeted to help S’poreans adjust to higher GST: Tharman THE government collected an additional $990 million in tax revenue last year due to the higher Goods and Services Tax (GST) that kicked in on July 1, 2007. Yesterday, Finance Minister Tharman Shanmugaratnam told parliament that about $540 million of the revenue was domestic, while […]
S’pore brokers check clients’ margins, take no chances
Margin calls, forced selling not surprising in current market, say some brokers (SINGAPORE) Veterans of previous crashes say it’s not that bad this time, at least not yet. But broking houses are taking no chances. They are battening down the hatches and checking the credit quality and margins of clients. Some investors are complaining about […]
Analysts lower estimates after another bleak day
Key resistance levels pitched down as panic selling persists (SINGAPORE) If Monday was the day when fear stalked the markets, then yesterday saw a phase when it took a firmer hold. There was no let-up in the selling frenzy and bourses around Asia bled for the second straight day with the ‘R’ word very much […]
Chinese property developer CentraLand launches IPO
Zhengzhou-based firm’s shares priced at 50 cents; offer closes on Jan 30 CHINESE property developer CentraLand Ltd yesterday launched its initial public offering (IPO) of 245 million new shares at 50 cents each for a mainboard listing on the Singapore Exchange. The company, based in the city of Zhengzhou in Henan province, expects to raise […]
CapitaLand plans to set up Reit for Indian retail malls
It unveils separate ventures with two partners for 15 projects worth $2.1b CAPITALAND plans to create a Real Estate Investment Trust or listed vehicle holding Indian malls as an exit strategy for retail projects that it will develop jointly with two separate Indian partners. The Singapore property giant yesterday announced separate joint ventures with Prestige […]
DBS analysts see US slowdown, not recession
WITH the markets falling all around them, DBS analysts are standing out with a contrarian and notably optimistic view on where macroeconomic variables are headed. The bank’s head of group research, Sanjit Maitra, said at DBS’s annual outlook seminar for corporate and private clients yesterday that he believes that US domestic consumption is not headed […]
Overheating of Asian economies likely: Lehman
Better growth rate will attract massive capital inflows GOOD economic news now could lead to tough times later, an American investment bank is warning. The bank, Lehman Brothers, says that a soft landing for the global economy could lead Asia ex-Japan economies to overheat later this year or into next year. Lehman’s chief economist Asia […]
Investors abroad don’t feel immune to US woes now
They worry how bad a US recession could get, and how badly it would hit the world (FRANKFURT) Since late last summer, the US economy has demonstrated an enduring power to surprise. And not for the better. Investors worldwide are pondering the prospects for a recession in the United States, their latest and furthestreaching preoccupation […]
French economic reforms may spark new dynamism in Europe: S’pore
Story Print Friendly Page Republic’s interested in these reforms, says Lim Hng Kiang IN PARIS WITH global markets in a tailspin over fears of a US recession, the world clearly needs more growth engines. Hence Singapore’s interest in the progress of economic reforms in France, which, if successful, could spark new dynamism in Europe, says […]
Inflation to ease to 4%: govt economist
(BEIJING) China’s inflation will recede in 2008 due to a slowing economy and a drop in food prices, a senior government economist said in a report published yesterday. Fan Caiyue, a deputy head at the economic research institute under the National Development and Reform Commission, said that China’s consumer price inflation would drop to 4 […]
COMMENTARY: Things are no different after all
FOR months, the warning signs were apparent, but euphoric investors, boosted by a liquidity-driven bull market that had lasted more than three years, chose to ignore them. Furthermore, they were lulled into complacency by repeated bouncebacks from various shocks ranging from Chinese monetary tightening to the yen ‘carry trade’. Now, in the space of months, […]
Soros warns of worst financial crisis since WWII
(VIENNA) Billionaire investor George Soros said the world was facing the worst financial crisis since World War II and the United States was threatened with recession, according to an interview by the Austrian daily Standard. ‘The situation is much more serious than any other financial crisis since the end of World War II,’ Mr Soros […]
US economists bearish about America: survey
But they are more upbeat about their own firms’ outlook (WASHINGTON) Leading business economists are growing more pessimistic about the health of the US economy, but are more upbeat about their own company’s prospects, according to a new survey. The National Association for Business Economics (NABE) panel yesterday predicted a sharply lower pace of growth […]
Dramatic 75 basis point cut in US rates
As markets reel, US central bank says it stands ready to act again; its next scheduled meeting is in a week’s time NEW YORK CORRESPONDENT IN A stunning response to the panic that triggered two days of frightening sell-offs on world stock markets, the US central bank yesterday slashed interest rates by a dramatic 75 […]
Why it’s difficult for HDB to predict demand
THE Housing Board cannot accurately predict demand for HDB flats years down the road. However, it will be flexible and boost the supply of flats when needed, Minister of State for National Development Grace Fu said yesterday. She gave this assurance in response to a question from Madam Cynthia Phua (Aljunied GRC), who wanted to […]
Govt rejects Aljunied site bid; offers flood Jalan Sultan plot
THE Government has decided not to sell a short-term office site in Aljunied because the sole bid that came in last week offered too low a price. This decision follows a recent string of lower-than-expected offers for state land and is the first time since 2001 that the Urban Redevelopment Authority (URA) has rejected bids […]
TAKING STOCK: STI ends bumpy ride just 51 points down
DBS, SingTel and SIA lead recovery in afternoon as rumours of US rate cut spread INVESTORS are grateful for small mercies these days – and they got one yesterday when the local market salvaged some respect after another wild day across the region. The 50.6-point fall in the Straits Times Index (STI) would have been […]
Hard choice for Lippo with surprise bid for Robinson stake
Indonesian group can either sell its shares, keep them or submit a counterproposal LIPPO Group, the No. 1 shareholder of Robinson & Co, seems to be caught between the devil and the deep blue sea in the face of a surprise offer from Dubai- based Al Futtaim. Lippo president and Robinson deputy chairman Stephen […]
CapitaLand in ventures for Indian malls worth $2b
CAPITALAND is expanding its presence in India’s fast-growing retail sector by investing in 15 malls worth more than $2.1 billion. The malls, spread over 14 cities, are to be spun off into a property trust after their completion – between next year and 2011. CapitaLand will achieve this by partnering two Indian real estate players […]
US home owner sues agent amid property woes
Case could be first of many as finger-pointing escalates; any player in the crisis may be sued CARLSBAD (CALIFORNIA) – MS MARTY Ummel feels she paid too much for her house. So do millions of other Americans who bought their homes at the peak of the housing boom. What makes Ms Ummel different is that […]
Governments urge calm in face of market turmoil
Ministers in Asia and Europe advise investors to stay rational and not overreact HONG KONG – GOVERNMENTS urged calm yesterday while calling for international cooperation to cope with a global slide in stock markets sparked by fears of a United States recession. Asian markets experienced a day of heavy losses, with Hong Kong share prices […]
NEWS ANALYSIS: Panic and fear, not fundamentals, driving sharp market selldown
Widespread selling creating financial violence people hope to avoid, analysts say NEW YORK – THE fear is spreading. For months now, investors have been lured to overseas markets with the promise that surging growth and solid economic fundamentals in Asia and the Middle East would insulate them from the credit squeeze plaguing the United States […]
Recession in US, Europe could shake Asia, S’pore
Region still relies heavily on world’s biggest markets, say economists A RECESSION in the United States and Europe would badly hurt Asian economies, including Singapore’s, which still rely heavily on these two export markets for growth, according to economists. Indeed, analysts at Lehman Brothers believe economic growth in Singapore could slump to as low as […]
Fed slashes rates in bid to halt share selloff
‘Emergency’ cut of 0.75 percentage points is its biggest in 26 years THE United States central bank slashed interest rates last night in a desperate bid to halt a global share market bloodbath and keep recession at bay. The dramatic ‘emergency’ rate cut of 0.75 percentage points was far higher than expected and the biggest […]
State land sales in demand as en bloc fever cools
Developers find pricing of GLS sites more in tune with market realities (SINGAPORE) Developers seem to be turning increasingly to state tenders instead of en bloc sales to restock their residential landbanks. This is because land pricing at state tenders is more responsive to the current bearish market conditions. Also, the Government Land Sales (GLS) […]
GIC RE enters Russian real estate market
It buys 25% of township project for US$233m; forms partnership with PIK AFTER announcing around $7 billion worth of property deals in 2007, GIC Real Estate (GIC RE), the property arm of the Government of Singapore Investment Corporation, said that it will develop a township on a site in Russia with a market value of […]
Investment bar set high, but EDB expects to cross it
It forecasts another bumper year despite prospects of global economic slowdown (SINGAPORE) The world’s economy may be slowing down, but Singapore expects to continue attracting huge investments this year that will spur growth and create jobs. If anything, it expects to surpass last year’s record $16.1 billion worth of manufacturing investments. The Economic Development Board […]
Genting confirms talks to build hotel in Sports Hub
Shatec signs pact to be master caterer of hub for 25 years (SINGAPORE) Genting International plc (GIL) yesterday confirmed a BT report that it is currently in preliminary talks with Singapore Sports Hub Consortium to build a hotel in the Sports Hub. In an announcement on the Singapore Exchange, GIL said ‘preliminary planning suggests the […]
Chip Eng Seng wins $188m HDB contract
CHIP Eng Seng Corporation has been awarded a contract worth $188 million by the Housing & Development Board for the construction of 1,394 dwelling units in Queenstown. The contract, won through wholly-owned subsidiary Chip Eng Seng Contractors (1988) Pte Ltd, also includes the construction of a multi-storey carpark, link bridges, a roof garden, an education […]
SUB-PRIME HITS: Bank of China may post 2007 loss on write-down
SCMP report heightens concerns about China’s exposure to crisis (BEIJING) Bank of China might post a 2007 loss because of a big write-down on billions of dollars of US subprime related investments, a newspaper reported yesterday, sending shares in the lender tumbling. Quoting unidentified sources, the South China Morning Post said that Chinese banking regulators […]
Once-hot China real estate sector cools down
(SHANGHAI) After booming in recent years, China’s real estate market is finally starting to feel the pinch from sagging demand and tighter controls. One of China’s biggest real estate agencies, Chuanghui Real Estate, has shuttered dozens of outlets in Shanghai and other cities, leaving angry customers and employees, after an ill-timed expansion just as the […]
Emaar’s India unit in IPO to tap US$1.8b
Proceeds will be used to buy land, development rights, pay for construction (MUMBAI) Dubai’s Emaar Properties hopes to raise up to US$1.8 billion from an initial public offering of a unit in India, where IPOs are forecast to more than double this year despite choppy markets in the wake of the US subprime mortgage crisis. […]
ART buying another property in Australia
ASCOTT Residence Trust (ART) is acquiring an 84-unit serviced residence in Australia for a total purchase price of A$28.5 million (S$35.6 million). In a statement released yesterday, ART said the acquisition is yield-accretive at an estimated annualised property yield of 6.1 per cent in the forecast year 2008. The freehold property, currently known as Chifley […]
Analysts see Asian economies weathering a US recession
Reason: Asia is now less dependent on the US economy (BANGKOK) Asia would be able to weather any recession in the United States, analysts say, because rising trade and investment within the region make it less dependent on the US economy than in the past. While a severe downturn in the US would drag on […]
Asian markets crash while US totters
Recession fears hit home in plunges reminiscent of post-9/11 debacle (SINGAPORE) It was blood on the floor across Asian bourses yesterday as investors dumped stocks amid intensifying fears of a US economic meltdown. This, despite President George W Bush last week announcing a massive US$145 billion stimulative tax relief plan and Federal Reserve boss Ben […]
British house prices fall in January
(LONDON) UK house prices declined for a third month in January, reviving interest among prospective buyers after a slump in viewings late last year, Rightmove plc said. The average asking price fell 0.8 per cent to £230,428 ($647,908) from December, compared with a 3.2 per cent drop the previous month, Britain’s most-used property website said […]
UK property shares set for 20% rise: Morgan Stanley
But over longer run, rally could ebb as economic downturn forces rentals to fall IN LONDON UK property shares may surge at least 20 per cent in the first half of 2008 as the Bank of England cuts interest rates, predicts Morgan Stanley. On a longer two year view however, Morgan Stanley is concerned that […]
UK home mortgages slip in Dec
(LONDON) British customer-owned lenders approved fewer loans for house purchase in December as falling house prices hurt the confidence of prospective buyers, a report by the Building Societies Association said. Mortgage approvals fell 20 per cent from a year earlier to £pounds;4.1 billion (S$11.5 billion), said the BSA, which represents 59 building societies in the […]
Service apartments seek shorter stays to ease hotel room crunch
Industry association proposes rule on stay of 7 nights or more be lifted FOR 20 years, there has been a little-known rule governing service apartments: Guests have to stay seven nights or more. Now, with an eye on the current hotel room crunch, the Serviced Apartments Association proposes that this condition be lifted. There are […]
Poor will not be neglected in HDB upgrading
Revised schemes allow for more flexibility and govt subsidies THE Housing Board will not neglect the needs of the poor, or be rigid, as it upgrades flats under schemes which have recently been revamped. The Minister of State for National Development, Ms Grace Fu, gave this assurance as the Housing and Development (Amendment) Bill, which […]
Condo-style flats only a small part of public housing, says Mah
PARLIAMENT PRICEY condo-style flats will remain a small proportion of the total public housing supply with the Government pledging yesterday to continue providing affordable homes. Its assurance came as high-end flats in Boon Keng offered by private developers were launched recently for up to $727,000 for a five-room flat. The flats come with interior layouts […]
Investments in fixed assets in S’pore jump to record $16b
Good mix of new projects boosts data, lifts outlook for this year: EDB SINGAPORE has smashed the record for investments in new factories, machinery and other industrial facilities – having secured $16.1 billion worth of such investments last year. This was thanks to a whopping 400 new projects, including multibillion-dollar petrochemical and wafer fabrication plants […]
TOWNSHIP DEVELOPMENT: GIC property unit in Russian joint venture
THE property arm of the Government of Singapore Investment Corporation (GIC), GIC Real Estate, and a Russian company have announced a joint venture to develop a residential township north-east of Moscow. GIC Real Estate will acquire a 25 per cent stake in the project for about US$233 million (S$335 million). Its partner, PIK Group, will […]
EDB revises key indicators to reflect industry changes
THE blurring of the traditional lines between the manufacturing and services sectors has led the Economic Development Board (EDB) to revise the performance indicators it uses to reflect investment into Singapore. EDB’s assistant managing director for planning and policy, Dr Beh Swan Gin, said yesterday that evolving industry conditions had necessitated a revamp of the […]
STI plunges 6% in worst one-day fall since Oct 1987
Asian markets battered on fears of a US recession and possible writedowns by regional banks SINGAPORE’S market yesterday suffered its worst one-day fall since the Black Monday crash in October 1987 while other Asian bourses had to go back to the Sept11, 2001, terror attacks for a day as bad as this. The Straits […]
Australia caught in Asian boom and US bust
PM Rudd vows to cut govt spending among other plans to curb inflation SYDNEY – BOOM in Asia and bust in the United States are buffeting Australia’s economy, Prime Minister Kevin Rudd warned yesterday as he outlined plans to rein in inflation. ‘The most pressing economic challenge domestically is inflation,’ he told a meeting of […]
Southern China fights inflation by hiking wages
Officials hope raise will offset rising prices and stave off social unrest SOUTHERN China took steps to combat rising inflation yesterday with the manufacturing hub of Guangdong province set to raise minimum wages by 13 per cent after the Chinese New Year. Over in the autonomous casino enclave of Macau, its government yesterday also proposed […]
TAKING STOCK: Market likely to stay under pressure
Analysts say Bush’s economic rescue plan will do little to assure investors A FISCAL stimulus package unveiled last week by United States President George W. Bush may not be enough to assuage market fears that the US economy is headed for a slowdown. The Dow Jones Industrial Average closed at a 10-month low on Friday, […]
US shares endure their worst-ever start to a year
Further selldown expected unless this week’s earnings results are first-rate NEW YORK – STOCKS in the United States, as measured by the Standard and Poor’s (S&P) 500 Index, are off by 9.7 per cent so far this month – their worst start to a year ever. If markets slide again as they did last week, […]
