Is the Singapore Airlines deal set to collapse?



Li Fenghua, Chairman of China Eastern Airlines, the nation's third-largest airline, comments on its share price and the possibility of minority shareholders voting against a deal with Singapore Airlines. China Eastern plans to sell a 24 percent stake to Singapore Airlines and parent Temasek Holdings, pending an approval of minority shareholders including Air China’s parent. The parent of Air China, a larger rival of the Shanghai-based China Eastern, may consider voting against the deal on Jan. 8 with a 10 percent stake in the company.

On Air China's possible bid: “I understand some company is trying to keep its own monopoly in the market and cause some misunderstanding in media and public. It's not practical to raise the so-called bidding plan without government approval first. Plan with details is surely different from illusion. “The deal with Singapore Airlines and the government is fair and I believe our brother company won't vote against it for the interest of the industry. The government will have control on Air China's move finally. Air China parent will vote for the plan.”

On share price: “I'm confident that our shares will catch up with those of Air China and China Southern Airlines after the capital injection helps improve our business. If the deal fails to get minority shareholder's approval, short-term investors will surely lose, as we need even longer time to go through all these procedures once again.” On consolidation of China's Big Three airlines: “For a certain period of time, the government would like to see the Big Three operate in the nation's three aviation hubs. Cooperation and competition should exist for healthy development of the industry and customers.”

Will there be repercussions for Air China in their possible bid?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/12/is-singapore-airlines-deal-set-to.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Is Singapore turning into a regional hub for foreign companies to open their companies here?







Intertek, the world's leading provider of testing and inspection services, has opened a new petroleum laboratory inside the Universal Terminal on Jurong Island. Universal Terminal is Asia's largest commercial oil storage facility and is co-owned by Singapore Oil Trading Firm, Hin Leong and PetroChina.

The new Intertek laboratory provides important quality testing and inspection services to customers of the large storage complex, complementing the extensive expertise and laboratory testing capabilities provided by the nearby Intertek Singapore Technical Centre laboratory.

Marc Hoffer, President for Intertek Oil, Chemical & Agri in Asia Pacific, said, "Singapore is a key petroleum hub for the region. Our new facility at Universal Terminal is a strategic investment for Intertek, increasing support available to key petroleum clients and supporting their business needs across the region."

Occupying 8,000 sq feet, the new Intertek Universal Laboratory provides comprehensive laboratory testing services to support Universal Terminal Tenant needs as well as Intertek regional customers. Intertek is the only third-party independent laboratory in the terminal. Intertek provides support services such as fuel quantity and quality inspection, petroleum testing, bunker fuel testing to ISO 8217, bunker fuel quantity surveying, In-line Automatic Sampling, along with fuel oil and gasoline blending. Additional services include fuel and logistical consultancy, marine services, and storage tank calibration.

The new laboratory operates on a 24/7 basis and operates with a new state-of-the-art information management system (LIMS). Singapore customers also benefit from Intertek's fast on-site sample-pick-up system, FastLab. It is expected that the new laboratory will be ISO 17025 accredited by 2008.

Will the opening of the new Intertek Petroleum Laboratory help improve further Singapore’s Petroleum research?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/12/is-singapore-turning-into-regional-hub.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Why is ComfortDelGro revising its taxi fare structure?



ComfortDelGro, the largest operator of taxis in Singapore, has overhauled its fare structure which it says will better meet the demand for and supply of taxi services at different times of the day. Flagging down a Comfort or CityCab will cost $0.30 more at $2.80. The metered fare has also been adjusted. It will cost $0.20 per 385 metres of travel for the first 10 kilometres. This will go up to $0.20 per 330 metres for journeys beyond 10 kilometres. It will cost $0.20 for every 45 seconds of waiting time. Instead of the $2 surcharge for peak hour travel, there will now be a premium levied. It will be 35 per cent of the metered fare.

And the CBD surcharge will go up from the existing $1 to $3. Many drivers are reluctant to enter the city area during the evening ERP hours on an empty cab as they are not willing to pay the charges. To provide drivers with the added incentive to do so, ComfortDelGro will give all drivers who are unable to get a passenger within 15 minutes of entering the ERP zone an ERP rebate. This is possible through the use of ComfortDelGro's Escalade and location tracking system.

For travel from midnight till just before 6am, instead of the gradual buildup in surcharge, it will be simplified to a flat 50 per cent of the metered fare. However, the booking fee during peak hours will be reduced by $0.50 to $3.50. The booking fee remains at $2.50 for non-peak hours. As an example, ComfortDelGro says a 9-kilometre trip off-peak will cost $8.40 (a 10% increase from the current $7.65) while a trip of the same distance during peak hours will cost $11.40 (a 49% increase from the current $7.65).

ComfortDelGro says the fare changes are the result of an in-depth review of the industry by the Group, which took into account suggestions and feedback from the public. The changes also took into account feedback from taxi associations, taking into consideration the higher operating costs of taxis. Also, it addressed commuters' concern on the difficulty in getting a cab in the city in the evening while encouraging call bookings to better match the demand and supply of taxis. ComfortDelGro says it will not raise rental fees for its taxis, following the fare adjustment.

The Taxi Operators' Associations, in its response, called the fare revision fair and timely. This is in view of the rapidly rising operating cost, especially the price of diesel and the increase in the Goods and Services Tax. It believes that overall taxi metre fare should reflect the operating cost of the taxi business, and the primary consideration is the income stability of the taxi drivers when fare adjustments are made. TOA urges the other taxi companies to adjust their taxi fares as soon as possible.

How will these new changes affect the consumers' hip-pocket?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/12/why-is-comfortdelgro-revising-its-taxi.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Is Singapore the new melting pot for international research and development?



With more than 2,700 Indian firms operating in the country, Singapore has emerged as the favourite destination for Indian domestic corporates looking to internationalize their business. While bilateral trade between the two nations has gone up as expected post-Comprehensive Economic Cooperation Agreement (CECA) in 2005, it is Singapore's might as a leading hub for innovation and research and development (R&D) that has attracted Indian companies to set up shop there.


"Singapore is increasingly being used as a platform for Indian companies looking to internationalize their business, with the number of Indian companies venturing there growing at an annual rate of about 10 percent," said International Singapore Economic Development Board Director (Asia Pacific) Aylwin Tan, "The number has more than doubled in just five years from 1,100 in 2001 to more than 2,800 companies as of the third quarter in 2007, making India the fourth largest contingent of foreign companies in the city nation."


Most of the companies that have invested there are either Information Technology (IT) companies or manufacturing firms largely dependent on technology. Some of the Indian prominent companies that have invested there include Tata Consultancy Services (TCS), Tata Steel, Tata Precision (TPI), Satyam Computers, NIIT Technologies, Tech Mahindra and Godrej.


The surge in bilateral trade and the fact that India-Singapore is the first and so far the only fully operational CECA has helped increase investor confidence. Bilateral trade has tripled in the past five years from 6.9 billion U.S. dollars (186 billion Indian rupees) in 2001 to 19.9 billion U.S. dollars (537 billion Indian rupees) in 2006.


India has emerged as the fastest-growing trading partner for Singapore and is now its 12th largest trading partner. Singapore was India's third largest export destination and fourth largest investor in 2006, with cumulative investments of 1.56 billion U.S. dollars (61 billion Indian rupees) since August 1991. In 2006 alone, Singapore's total investments amounted to 620 million U.S. dollars (24,462 million Indian rupees), comprising 5.6 percent of all FDI into India.


Singapore's free trade agreements (FTAs) with other countries are an added bonus. The U.S., Japan, Australia and South Korea are among the 13 countries it has FTAs with and another is being negotiated with China. "For four decades, Singapore has been the gateway for international companies, especially those from the United States, Europe and Japan to venture into Asia. Now it is playing that role also for Asian companies internationalizing. As a result, more than 12,000 U.S., European and Japanese companies, and more than 14,000 from India, China, the ASEAN and Australia are here. They represent interests and opportunities from all corners of the world," Tan said.

What price will Singapore pay in becoming the hub of all things important?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/12/is-singapore-new-melting-pot-for.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Has Temasek’s move undermined Bank of China’s credibility?




Bank of China posted its biggest drop in more than three weeks in Hong Kong trading after Singapore's Temasek Holdings sold part of its 4.6 percent stake in China's third-largest bank. Singapore's state-owned Temasek is selling 1.08 billion Bank of China shares at HK$4.09 to HK$4.12, according to investors, raising up to HK$4.46 billion ($573 million).



Temasek is trying to “reduce the exposure in financial holdings and not to be a substantial shareholder of any big company,'' said Ronald Chan, who manages $3 billion of Asian equities at Fortis Investment Management in Hong Kong.

Bank of China has gained 36 percent in Hong Kong and more than doubled in Shanghai since its debut in 2006, catapulting its market value to $196 billion, more than that of Citigroup Industrial & Commercial Bank of China, China Construction Bank and Bank of China are among the world's top four banks by that measure as the nation's economic growth fuels demand for loans while global peers suffer from the U.S. subprime meltdown.

The sale will reduce Temasek's stake to 4.1 percent. Financial services companies made up 38 percent of Temasek's portfolio of more than $100 billion at the end of March, compared with 35 percent a year earlier. The Singapore investment company confirmed the number of shares it's selling, declining to provide details on the price.

Temasek, which owns its BOC stake through its unit Asia Financial Holdings, now known as Fullerton Financial Holdings, is Bank of China's fourth-largest shareholder after Central Huijin Investment, HKSCC Nominees and Royal Bank of Scotland Group.

“We review our portfolio from time to time and may rebalance it against new opportunities,'' Yap Chwee Mein, Temasek's managing director of investment and China said. “We remain optimistic on China's long-term potential.''

Will other companies buy the shares that Temasek sold as China’s economy pick up quickly?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/11/has-temaseks-move-undermined-bank-of.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Are Indonesia’s capricious policies going to cost them their transoceanic investors?



Singapore investment company, Temasek Holdings is required to sell its indirect stake in either PT Telekomunikasi Selular (Telkomsel), or PT Indosat Tbk (Indosat) within two years. Telkomsel and Indosat are the leading and second ranking cellular operators in Indonesia, with subscriber market shares of 56% and 26% respectively at end-June 2007. Singapore Telecommunications (Singtel) is 56.1% owned by Temasek, and which in turn holds a 35% stake in Telkomsel. Temasek's stake in Indosat is held through its wholly-owned subsidiary ST Telemedia, which holds 75% in Asia Mobile Holdings, which in turn holds 40.8% in Indosat.

On November 20, 2007, the Komisi Pengawas Persaingan Usaha (KPPU) ruled that Temasek had breached anti-trust regulations, specifically Article 27(a) of Law No.5/1999 of Indonesia, on the grounds of its ownership in two companies that control over 50% of their market segment. The ruling also implied allegations of price-fixing, stating that Telkomsel had abused its dominant market position by charging excessively high tariffs. A fine of IDR25 billion or around USD2.7 million each has been levied on Temasek and Telkomsel, as well as eight Temasek affiliates named in the case. In addition, Telkomsel has been ordered to reduce cellular tariffs by 15%.

The aforementioned ruling and associated penalties are not legally binding until endorsed and upheld by a superior court in Indonesia. Temasek and other named parties has seeked for an appeal against the ruling, and in this regard, there is a precedent of Indonesian courts moving to invalidate KPPU decisions. For example, in March 2006, the KPPU charged PT Semen Gresik (Persero) with violation under the same law, levying a fine of IDR1.0bn. The company subsequently filed an appeal in the Surabaya District Court, which accepted the objection and ruled to cancel the KPPU's decision. As the matter stands, the case is pending judgment on a counter-appeal filed by the KPPU in the Supreme Court of Indonesia.

Moreover, and as the above example illustrates, the legal process tends to be protracted in Indonesia, and it could take a year or more before a final and binding decision is reached. In the interim, a negative reaction to the KPPU's ruling by the Indonesian financial and/or political community, reflecting concerns over the potential impairment of foreign direct investment flows into the country, could influence the outcome of the process in a more positive direction for the various companies affected by the ruling.

However, if under any circumstances Temasek is required to divest its stake in the telecommunications companies, it would more likely to sell its stake in Indosat, given its weaker market position compared with Telkomsel. If Temasek were to divest its Telkomsel stakes, negative pressures would be inflicted on the outlook of Telkomsel and Singtel. In Telkomsel's case, Singtel's strategic shareholding and influence has provided comfort in rating the company above the sovereign local currency rating. Conversely, Telkomsel is a star performer and key growth driver in Singtel's overseas asset portfolio.

Other conditions within the KPPU ruling appear unusually onerous for both Temasek and Telkomsel. The requirement that the forced divestment by Temasek would allow no buyer of the divested business to acquire more than 5% of the entire divested stake means that the shares must be placed with at least 20 different investors. This is extremely likely to be challenged by Temasek.


Is there an autonomous driving force being KPPU’s wheel of action?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/11/are-indonesia-s-capricious-policies.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Is Singapore trying to hop onto the China’s fast-growing economy?





China and Singapore have agreed to strengthen cooperation in several areas, including the China-Singapore Free Trade Agreement (FTA). The two sides also agreed to set up an "Eco-City" in China. The agreement was reached between Chinese Vice-Premier Wu Yi and her Singaporean counterpart Wong Kan Seng at the 4th China-Singapore Joint Council for Bilateral Cooperation (JCBC) meeting in the city-state.

Wu is on a four-day visit to the city-state at the invitation of Vice-Premier Wong. The proposal for the "Eco-City" project had come from Singapore's Senior Minister of the Prime Minister's office Goh Chok Tong during his visit to China in April. He had said the proposed project could transform a city beset by water problems into an environmentally friendly, self-sustaining place, where housing units for lower-and middle-income groups could be built. Singapore suggested having a China-Singapore FTA last year that Beijing accepted, even though it had a "1+10" FTA plan with the Association of Southeast Asian Nations (ASEAN).

After the meeting, several memorandums of understanding on bilateral cooperation in human resources development, health, taxation and environmental and water resources were also signed.

"Total trade between China and Singapore reached $40.85 billion last year, accounting for one-fourth of China's trade volume with ASEAN countries. Singapore has become the sixth largest investment source of China," Wu said. The two vice-premiers co-chaired the ninth meeting of the Joint Steering Committee of Suzhou Industrial Park (SIP), a high-tech industrial base launched in East China's Jiangsu Province in 1994.

In the past three years, the park has approved 1,500 foreign-invested projects, with actual investment of $6 billion. The two governments have said before that they would strengthen their joint efforts to make the industrial park as competitive as possible. The committee decided to optimize the second 10-year target for the park, adjust its structure and reduce its energy consumption to the level of developed countries.

Wu met with Singapore Prime Minister Lee Hsien Loong, the city-state's founding father Lee Kuan Yew and Goh Chok Tong. It will bolster China's ties not only with Singapore, but also with other ASEAN member countries.

Zhai Kun, a senior researcher on Southeast Asia with the China Institute of Contemporary International Relations, attaches great importance to the FTA. "It will enable Singapore to become the window to China in Southeast Asia and the world," he said. The "Eco-City" project, Zhai said, reflects Singapore's creative economic strategy when participating in China's development.

Will Singapore ever be the first largest investment source in China?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/11/is-singapore-trying-to-hop-onto-chinas.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Will DBS bid for TMB resemble what happened between Temasek and Shin Corporation?

Will DBS bid for TMB resemble what happened between Temasek and Shin Corporation?



Deutsche Bank and DBS Group Holdings made a counter offer for new shares being sold by TMB Bank, the Thai bank said, in an attempt to trump a bid by ING Groep NV.

TMB's board is reviewing the joint proposal and may identify the winning bidder today, Chairman Somchainuk Engtrakul said by phone from Bangkok. The bank, Thailand's fifth-largest, is planning to sell 35 billion baht ($1 billion) of new shares to stakeholders, an amount almost equivalent to TMB's market value.

ING and DBS are vying for the stake as TMB rebuilds its capital and adds more branches and services. TMB, formerly known as Thai Military Bank, also needs the funds as it sets aside more for bad loans after Thailand's consumer confidence fell to a five-year low following a military coup last year.

“TMB may not be a strong bank in Thailand, but it's not terrible,'' said Korawut Leenabanchong, who helps manage the equivalent of $2.5 billion at UOB Asset Management (Thai) in Bangkok. “It has branches to build banking services on.'' ING spokeswoman Karen Williams, Deutsche Bank's Mike West and Eileen Lau from DBS declined to comment.

DBS is TMB's second-largest shareholder with a 16.1 percent stake, and Thailand's Finance Ministry is the biggest investor. The stock purchase is a reversal of DBS's decision to hold back on additional investments in TMB, as Singapore's biggest bank seeks greater control. It will also give Deutsche Bank, Germany's largest, a presence in Thailand's commercial banking industry.

TMB asked the Stock Exchange of Thailand to suspend its share while its board considers a bid from an unidentified group of investors. The board will make a decision and the bank will hold a press conference, Thai Finance Minister Chalongphob Sussangkarn said. “It's not necessary for the board to choose only one partner,'' he said. “It can be mixed. This is up to the board.''

The minister said Oct. 8 that ING, the largest Dutch financial-services company, will invest in TMB after DBS said it won't pump in more funds. DBS said Sept. 19 it decided not to invest further after failing to get assurances that it would have “sufficient management control.''

DBS said in an Oct. 26 statement it took a S$38 million ($26 million) so-called impairment charge on its TMB investment. The Thai bank had posted its biggest quarterly loss in seven years. TMB Bank rose 1.9 percent to 1.58 baht. The stock has fallen 36 percent this year, compared with a 21 percent gain in Thailand's SET Banking Index.

If DBS does win the bid, will the bad blood left behind between the Temasek & Shin Corp saga be factor in its success in Thailand?

Post Title

→

Will DBS bid for TMB resemble what happened between Temasek and Shin Corporation?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/11/will-dbs-bid-for-tmb-resemble-what.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Are there enough people for Singapore's workforce?



Singapore's unemployment rate in September fell to a seasonally-adjusted 1.7 percent, a decade low, while employment continued to grow strongly as the economy maintained its rapid expansion, the government said.

Figures from the Ministry of Manpower (MOM) show that the economy created 57,600 jobs in the third quarter, substantially higher than the increase of 43,000 in the same quarter last year but lower than the record gains of 64,400 in the previous quarter. This brought the total employment gains for the first three quarters of this year to 171,500, which is close to the 176,000 for the whole of last year.

The seasonally adjusted overall unemployment rate fell to 1.7 percent in September from 2.3 percent in June, "as more of the unemployed found jobs in the rapidly growing economy," said the MOM.

Compared to a year ago, the unemployment rate has fallen by a full percentage point from 2.7 percent in September of last year. Services continued to lead the employment gains, adding 34,500 workers in the third quarter. The manufacturing sector posted gains of 11,800. Driven by the growth in building activities, construction raised its workforce by 10,800, continuing the rapid increase of the previous quarter.

On retrenchment, the MOM report said initial findings showed that 1,700 workers were laid off in the third quarter. The majority of the workers retrenched were from manufacturing (1,200), another 500 workers were laid off from the services industries, it said.

After growing 7.9 percent last year, Singapore's economy in the first half of this year got a better-than-expected growth of 7.6 percent, and grew 9.4 percent in the third quarter. Singapore's growth forecast for the whole year by the government is between 7 and 8 percent.

Will the local's booming economy allow more foreign companies to come Singapore to take advantage of the booming economy?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/10/are-there-enough-people-for-singapores.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Why is Singapore Airlines Delaying its Virgin Sale?

Why is Singapore Airlines Delaying its Virgin Sale?


Singapore Airlines has postponed the sale of its 49 per cent stake in Virgin Atlantic because of turbulence in the financial markets.

Sources close to the company have confirmed that the recent credit crunch in world banking would delay a decision on offloading the stake, which could be worth up to £1 billion.

Singapore Airlines bought the stake from Sir Richard Branson in 1999 for £600 million, but said three months ago that it was considering whether to remain a shareholder in the British airline. Sir Richard is thought to have a preemptive right to buy back the shares, but Singapore has also considered selling to a private equity firm or even another airline.

Because of the turmoil in financial markets the airline is thought to be concerned that it will not get the best price for its stake. It will remain a shareholder in Virgin, therefore, until early next year, at least. Industry sources suggested that Singapore Airlines may choose to drop the sale completely as it focuses on expanding in Asia.

The company bought its stake in Virgin because it wanted access to the transatlantic route between Heathrow and New York. As a Singaporean company, it could not offer its own service between Europe and the United States. However, two weeks ago the British and Singaporean governments agreed to remove restrictions on air travel, which will allow Singapore to offer services from London to New York.

Analysts had been speculating that Singapore Airlines would drop the Virgin stake once this agreement was in place and launch its own transatlantic service.
Singapore Airlines, regularly voted one of the world’s best airlines, is particularly focused on growing in China and has taken a 24 per cent stake in China Eastern Airlines.

Singapore Airlines was not available for comment. A spokesman for Virgin said: “They have been a valuable shareholder and any decision on their stake is a matter for Singapore Airlines.”

Is turbulence in the financial market the only reason why Singapore Airlines is delaying the sale of its stake in Virgin Atlantic?

Post Title

→

Why is Singapore Airlines Delaying its Virgin Sale?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/10/why-is-singapore-airlines-delaying-its.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

How will the sale of Singapore's Power Plants benefit Temasek?

How will the sale of Singapore's Power Plants benefit Temasek?




Who is the sale of Singapore’s Power Plants actually benefiting? CLP Holdings, the larger of Hong Kong's two power producers, is considering bidding for Singapore's three biggest utilities being sold by Temasek Holdings said Group Director Stefan Robertsson.


“Electricity is a growth industry in Asia, the industry dynamics are one of consolidation and privatization,” Robertsson said in an interview today in Singapore. “Given that we are interested in Asia-Pacific, it is an important opportunity for us.”


OneEnergy, a joint venture between CLP and Mitsubishi, is expanding in Asia to take advantage of rising demand for electricity. Last month, CLP said it plans to buy two coal-fired electricity projects in India.


Temasek, the Singapore government's investment company, announced in June it's reviving the plan to sell the island's three biggest generators after a six-year delay. The three utilities account for 90 percent of the island's electricity capacity. So far this year, $53.5 billion of acquisitions involving energy companies have been announced in Asia.


Singapore's economy grew for a 14th consecutive quarter in the three months ended June 30, the longest expansion since 1991, the trade ministry announced Oct. 10. Demand for electricity during peak periods will rise 53 percent to 8,390 megawatts in 2015, according to the Singapore Energy Market Authority.


CLP, the 106-year-old company controlled by the family of Chairman Michael Kadoorie, has expanded in countries including Australia and India to counter slowing growth in Hong Kong. CLP reported first half profit rose 23 percent to HK$6.13 billion ($791 million) after selling its stake in a Taiwan power plant.


Marubeni , Keppel and Sembcorp Industries plan to bid for the utilities that may be worth S$2.5 billion ($1.7 billion), three bankers with knowledge of the deal said July 23. Temasek aims to complete the sale of Tuas Power, Power Seraya and Power Senoko by early 2009.


General Electric , Tokyo Electric Power , Babcock & Brown , International Power Plc are also among likely bidders for Singapore's power generators.


By selling it’s Power Plants, how will Temasek benefit?

Post Title

→

How will the sale of Singapore's Power Plants benefit Temasek?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/10/how-will-sale-of-singapore-power-plants.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Is Singapore’s economy championing Asia’s growth?

Is Singapore’s economy championing Asia’s growth?


Asian stocks rose after Singapore's economy grew faster than economists had expected after gross domestic product jumped an annualized 6.4 percent after adjusting for inflation, the 14th straight quarter of growth, according to the trade ministry. Economists were expecting a 5.1 percent gain.

Benchmarks in China, Hong Kong, Australia, South Korea, Indonesia and Singapore were also set for new highs, while Japan's Nikkei 225 Stock Average rose 0.3 percent to 17,217.53.


Honda, Japan's second-largest automaker rose 0.8 percent to 4,050 yen. Samsung Electronics, South Korea's biggest exporter added 1.9 percent to 547,000 won. Yue Yuen Industrial, the biggest maker of athletic shoes for Nike and Adidas, gained 0.8 percent to HK$25 in Hong Kong. DBS Group added 0.5 percent to S$22.70. Keppel Land, Singapore's third-largest property developer gained 1.8 percent to S$8.70.

The city-state's $134 billion economy grew at an annualized 6.4 percent pace in the third quarter, the trade ministry said . That's faster than the 5.1 percent rate forecast by economists.

“The economic growth number is positive, especially for companies that generate income here,'' said Thue Isen, of Bankinvest Group in Singapore.

Singapore Telecommunications, Southeast Asia's largest telephone company, added 1 percent to S$4.18. Citigroup raised its share-price estimate for Singapore Telecommunications by 13 percent to S$4.40.

Shares of Industrial & Commercial Bank of China, China's biggest lender, gained after its equity fund venture with Credit Suisse Group was approved. ICBC Credit Suisse Asset Management received regulatory approval to start investing overseas under China's qualified domestic institutional investor, or QDII, program, the company said.

Can Singapore lead Asia’s economic charge?

Post Title

→

Is Singapore’s economy championing Asia’s growth?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/10/is-singapores-economy-championing-asias.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Will Singapore Gain as Bush Suppresses Growth of Stem Cell Research?

Will Singapore Gain as Bush Suppresses Growth of Stem Cell Research?

The meeting of the Stem Cell Club in Singapore at the $300 million government-funded science park called Biopolis, whose members include researchers at the forefront of one of the most promising and controversial areas of science today. as part of its efforts in Singapore is to create a globally competitive biomedical industry. Singapore has lured star scientists such as Alan Colman, who helped clone Dolly the sheep, and David Lane, who discovered a protein that suppresses some tumors.

Singapore has spent more than $3 billion in a bid to transform its economy into a knowledge-based one that relies less on manufacturing of products like cell phones and modems and more on fields such as research.

The Singaporean government aims to create 15,000 jobs in the city-state of 4.5 million people and boost annual production to 25 billion Singapore dollars by 2015.

Philip Yeo, former chairman of the state's Agency for Science, Technology and Research, known as A*STAR can already point to tangible results. “Annual output of drugs and medical devices has quadrupled since 2000 to S$23 billion last year. In the same period, the country created 10,571 new jobs”, says Yeo, 61, who as head of the Economic Development Board for 15 years led Singapore's efforts to create its own electronics and chemicals industries.

Since 2001, more than 100 foreign drug makers and biomedical companies, including GlaxoSmithKline Plc, Novartis AG and Pfizer Inc., have set up factories here, attracted partly by patent enforcement that's the strictest in Asia, which protects both international patents and those granted in Singapore.

One area where Singapore is trying to distinguish itself is in stem cell research. Embryonic stem cells, which are the human raw materials that can grow into heart muscle, nerves or other organs, have the ability to divide and renew themselves.

The research is contentious. Some stem cells are derived from embryos that are donated or discarded by couples undergoing fertility treatments. The embryos, which are a few days old, are destroyed in the process.

U.S. President George W. Bush has said such experiments pose "moral hazards". In August 2001, Bush cut off U.S. funding for research on all but existing stem cell lines made from discarded human embryos. A stem cell line is a group of cells derived from a single embryo; the U.S. has approved research on 22 such cell lines that were created before August 2001.
Germany and Italy, among other countries, also restricts the use of human embryonic stem cells in research.

Singapore's prospects are good and everything indicates the government will have the patience. Will Singapore capitalize on the stem cell research industry?

Post Title

→

Will Singapore Gain as Bush Suppresses Growth of Stem Cell Research?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/10/will-singapore-gain-as-bush-suppresses.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Singapore Business Review E-Newsletter

Singapore ranked best in Asia again?




Singapore has been ranked the third best place to have meetings. The country just stands behind Paris and Vienna which hold 1st and 2nd positions. This ranking is based on the Union of International Associations’, UIA’s latest rankings. This is the first time Singapore has been placed in the top three.

It has moved up three notches to being Asia’s top countries to do meetings. On a pleasant note, Singapore has retained its position as the best place in Asia to have meetings. Singapore has thus retained its 23 year record.

Singapore’s remarkable ranking will prove to be a tremendous endorsement of its strengths and continued draw as a business destination. This view was resounded by the Singapore Tourism Board. The rankings are evidence of a 62 percent growth over 2005.

The tourism board also noted that the number of meetings held in Singapore has more than doubled in the past five years and accounted to 22 percent of all meetings held in Asia. Prestigious noted meetings that have been held in Singapore recently were the annual meetings of the International Monetary Fund and World Bank in September.

There is something about Singapore that other Asian countries could learn from. Maybe other countries in Asia could analyse the steps Singapore takes to play host and then maybe they would be able to share the spotlight with Singapore.

Singapore has even attracted the likes of one of the world’s greatest chef’s in the likes of Chef Thomas Keller who is on show at the 13th annual wine, food and arts experience at the Raffles Hotel. He has achieved Seven Michelin Stars and is one of the most reputable chefs in the arena of fine dining.

Post Title

→

Singapore Business Review E-Newsletter

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/09/singapore-business-review-e-newsletter.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Why was Temasek citied as having made an offer?

Why was Temasek citied as having made an offer?



Temasek is denying that it ever made an offer for Nasdaq Stock Market Inc’s 31 percent stake in London Stock Exchange Group Plc. This goes against the grain of reports that mentioned that Temasek had made a bid. A London based publication reported that Singapore’s Temasek had lost out in a bid for the London Exchange Stake. Temasek has strongly disputed the reports stating , “We had not at any time made an offer, nor participated in any bidding for the 31 percent Nasdaq state in the London Stock Exchange.”

Temasek said it was disturbed that certain market players had chosen to use the name of Temasek in an unprofessional manner. “We are extremely disappointed that certain market players have chosen to use Temasek’s name in such an unprofessional manner,” the superpower said.

It is rare for Temasek to issue a statement to defend itself against the report. Temasek manages more than $100 billion dollars worth of assets. It has acquisitions in in China and India and has stakes in some of Singapore’s biggest companies. Temasek has always declined to comment in the past on market speculation about acquisitions.

The presumably erroneous report came about after Nasdaq missed a self imposed deadline on September 8 to sell the stake. This was to give potential buyers more time to consider bidding for shares of Europe’s largest bourse. Another investment superpower which was said to have made a bid is the Qatar Investment Authority. The question to ask here would be why the English publication reported that Temasek had made a bid and why would Temasek issue a statement when it hardly issues a statement in its defense?

Post Title

→

Why was Temasek citied as having made an offer?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/09/why-was-temasek-citied-as-having-made.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Singapore Business Review e-newsletter

How to gain credit for business expansion?

Want your business to expand?
Authorities have introduced a new funding scheme for businesses who plan to expand in Singapore. Companies and businesses looking for short term funding to expand their businesses can make use of the enhanced loan insurance scheme. (LIS)

Launched by spring Singapore and international enterprise Singapore, LIS offers fast growing Singapore based enterprises financing at competitive rates.

Singaporean companies that are more creditworthy can look forward to better interest rates as the banks will now have more flexibility to offer better rates to companies. The Singaporean government supports this scheme. LIS offers a wide variety of trade financing facilities which include inventory financing, structured pre delivery working capital via standby, letter of credit, airway bills, shipping guarantees, shipping guarantees and shipping to third party countries.

Post Title

→

Singapore Business Review e-newsletter

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/09/singapore-business-review-e-newsletter_12.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Can good times be bad times for business?












The booming economy can be a scourge to some businesses. The good times in Singapore have tightened its grip on the supply of commercial space as well as labour for businesses in Singapore. This has eventually led to higher rentals and wages for businesses.

The salaries of certain groups of owners have also needed to be increased because of the higher cost of products. Some workers have complained that the current salaries they are receiving are not enough for businesses.

One example is the 100 strong courier company, network express. Managing Director V.S. Kumar said his drivers are clamouring for pay rises. “With the current salary you are giving us, our families can’t afford to buy the same things anymore”.

“If I am not going to give my new staff higher pay, they are not going to join us,” he said. With the good times, the cost of living has also obviously risen for the layman in the street and for businesses as well. “If I am not going to give my new staff higher pay, they are not going to join us.”

Rising residential rents are also affecting some multinational companies in Singapore which pay for the housing expenses of their expatriate staff here. Mr Dom LaVigne , Executive Director of the American Chamber of Commerce in Singapore (AmCham) noted, “In the last three to four months, we’ve heard more from our members about the concerns they have about the higher cost of doing business in Singapore.”

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/09/can-good-times-be-bad-times-for.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Will Singapore's economic growth continue?

Will Singapore's economic growth continue?
Prime Minister Lee Hsien Loong said Singapore’s economic growth forecast has been raised. This has been due to the economy expanding by 7.6 percent. In his televised national day message, Lee said the 134 billion economy would grow between 7 percent and 8 percent.

“Our efforts to transform our economy are paying off,” he said. As if looking into an economic crystal ball, he expressed the view that the country would face profitable changes. “ Within a decade, our city and our whole country will be completely transformed,” he added.
What does all this mean for businesses in Singapore? Singapore’s property and construction industries are booming and this is due to the government’s success in attracting companies, including Citigroup Inc and Friends Provident PLc.

Manufacturing and service industries will also expand and information technology industries will enjoy a boost in growth. 11,300 jobs have been created due to business expansion. What one has to ponder would be is to whether the good times will last and if the positive growth will be hit by an unpredictable event?

Post Title

→

Will Singapore's economic growth continue?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/08/will-singapore-economic-growth-continue.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

What brings Ascott to Kazakhstan?

What brings Ascott to Kazakhstan?







To tap into Central Asia’s growing demand, the Ascott Group acquired a ten-year contract to manage two serviced residences in Kazakhstan.

Although geographically in Central Asia, the oil rich Kazakhstan has strong affiliation and proximity to Europe and falls under Ascott’s Europe strategy. According to the group, strong travel culture among Europeans will boost their operations in Europe.

With less than 2,000 international hotel rooms in the entire country, the serviced residences operator will be the first international player to invest, and will manage some 320 units targeted to open by mid 2009.

200 of the 320 units will be in the capital city of Astana, near an integrated centre developed by Tsesna Corp, Ascott’s partner. An additional 120 units will be in the port city of Aktau, near the Caspian Sea. They will be named Ascott Astana and Citadines Aktau, respectively.

The Ascott Group’s CEO for Europe Gerald Lee explored future plans too claiming, "Going forward, we'd be looking at cities like Almaty and Atyrau. We are planning to add two projects a year, at least over the next few years. "On average, each of these properties should be around 100 to 150 units. Once we are more familiar with the market, we'd consider taking an equity stake in some of these projects as well."

Although Ascott attributes the decision to strong travel culture in Europe, historically Kazakhstan has not been a popular tourist destination. However the country’s strong oil and gas industry is expected to dramatically increase business tourism. Is Ascott’s decision to enter Kazakhstan premature?

Post Title

→

What brings Ascott to Kazakhstan?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/08/what-brings-ascott-to-kazakhstan.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Is SingTel front running StarHub’s race for IPTV?




Singapore Telecommunications (SingTel) has launched its IPTV service, the first-ever pay TV challenge to monopoly cable-TV provider StarHub. SingTel is also the first operator in Asia to commercially launch an IPTV service based on the Microsoft IPTV platform.

SingTel, Southeast Asia's largest telephone operator, says its IPTV offering, dubbed the "mio TV" service, will have 33 channels and will be cheaper than StarHub's monthly minimum cable TV fee of $19.82. It won't have a mandated basic package, with subscribers free to pick and choose on an a la carte basis - all they have to do is meet a $10.61 per month "minimum spend" on content. The cheapest choice is $2.12 per month for a music channel (it appears to be the local equivalent of MTV) to $8.49 per month for a high-definition-channel package. "Customers have been calling for choice and flexibility in the pay-TV market, and now they have it," claims SingTel CEO Allen Lew.

The service will come with all the goodies - high-definition channels, video on demand (VoD) with both international blockbuster and Cantonese movies (for as little as 33 cents per film in a 25-films-per-month package) and time-shifting using a personal video recording (PVR) function via an 80 GB hard drive in the set-top boxes. There's also a plan afoot to dish up content from some channels via mobile TV to viewers with compatible mobile phones.

Although sign-ups start on 21^st July, the first set-top boxes won't be installed until August 6^th. Some lucky Singaporeans, though, have been getting the service for months. Trials of the service began late December last year. Indeed, as we reported, SingTel got such a large response to a call for volunteers to test the service that it quickly closed the sign-up list. In addition to Microsoft, the big winner in Singapore is Alcatel-Lucent, which is providing the hardware plus a complete services-integration solution that brings together the network infrastructure and software platform. HP ProLiant servers are being used in the system Alcatel-Lucent has put together, and Harmonic reportedly is providing the video head-end systems.

SingTel is further planning future "mio"-based services, including video conferencing and instant messaging, displaying photos and playing music, all from a PC but displayed on the TV set. SingTel also is said to be preparing to take the IPTV service to various other Asia Pacific countries where it has telephone operations.

So with StarHub facing competition from SingTel’s new product will they be forced to alter their product to rise to the challenge? mio TV comes into the competition as a front runner for homes where StarHub cable TV is still not available – a surprisingly large area of the nation. Furthermore, SingTel is offering its PVR function at a far more affordable price than the S$304.95 StarHub currently asks for the ‘Hub Station’ box, which carries out the same smart-TV features. With SingTel’s new product will StarHub be forced to alter its pricing or add extra, and superior, features to its pricy alternative?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/07/is-singtel-front-running-starhubs-race.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

SP AusNet to acquire Alinta?






SP AusNet, an Australian power distributor 51 percent-owned by Singapore Power, is still in talks with its parent about acquiring some Alinta assets.

SP AusNet Chairman Ng Kee Choe revealed in an address that Singapore Power intends to offer Melbourne-based SP AusNet the opportunity to acquire transmission and distribution assets of Alinta, if the purchase of Alinta assets by Singapore Power and other buyers is approved. If the board pursues the offer, SP AusNet shareholders will need to approve it, he continued.

Singapore Power, the island state's monopoly in electricity supplier and partner Babcock & Brown agreed to buy Perth-based Alinta, Australia's biggest energy transmission company, in May for about A$8 billion (US$7 billion) to carve up assets. The Singapore company is due to get distribution networks and an energy asset management unit in eastern Australia, and two gas pipelines.

“We look forward to the opportunity this may provide SP AusNet,” Managing Director Nino Ficca said in a web-cast address. “SP AusNet is dedicated to evaluating future opportunities for investment and acquisition in Australia and New Zealand.”


This proposed acquisition bares similar resemblance to the rumoured Macquarie takeover of Qantas earlier this year, which eventually fell through. As Australian’s face the prospect of additional purchases of home-grown businesses companies by that of rivals corporations, will they become increasingly exasperated? Should the negotiations turn sour, what could this mean for future investments by Singapore companies looking for similar private equity deals in outside businesses?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/07/sp-ausnet-to-acquire-alinta-sp-ausnet.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Singapore Homes Sky-Rocket, But Is the Price Getting Too High?




The price of private homes in Singapore rose to the highest in almost 10 years in the second quarter of this year as the city’s current economic expansion has allowed developers to sell apartments at record prices.

By June, residential property had risen in price by 7.9 percent to 147.3 points in just three months, the Urban Redevelopment Agency revealed in a statement on July 2nd. This rise is recorded the fastest in almost eight years and the highest level seen since the fourth quarter of 1997.

Director of Savills Singapore, Ku Swee Yong said “Based on some of the funds we are bringing and the deals we are seeing, Singapore’s attractiveness has increased tremendously.” He continued to add that “there’s a lot of wealth growth and a very important indicator is the confidence going forward.”

Singapore’s economy is enjoying its longest expansion since 1994, which is allowing developers to sell apartments at very high prices. At the end of June ‘The Marq’ apartments, by SC Global Development, sold for an astonishing $5,100 (US$3,327) per square foot. Moreover, Citigroup Global Markets commented that home prices in the city could rise as much as 25 percent this year.

At the end of last year, Swee Yong forecast that home prices may rise up to 20 percent in 2007. He may now have to revise his estimate.
Figures released by the Urban Redevelopment Authority are only preliminary and are based on transaction prices recorded during the first 10 weeks of the quarter. They followed that the statistics are to be updated four weeks later; however the first measure increased 4.8 percent.

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/07/singapore-homes-sky-rocket-but-is-price.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Will Lippo concretise the $5 Billion REITS plan in Singapore?


Lippo Group plans to set up real estate investment trusts that will buy as much as $5 billion of its Asian assets, freeing up capital to invest in higher- yielding projects including Singapore residential developments. The Jakarta-based company, which set up its first property fund in Singapore last year, plans to sell shares of trusts backed by shopping malls and office buildings, Chief Executive Officer James Riady said in an interview.


“We like the concept of a REIT,” Riady said at the World Economic Forum conference in Singapore. “That's a powerful tool for investors to invest in quality assets, and allows developers to tap into the REIT and enable them to do much more things than they would otherwise be able to do.”

What are the benefits of the property trusts? They will help Lippo tap funds from Singapore's five-year-old REIT market, where developers have sold shares in 16 trusts with a combined market value of $19.2 billion. Residential developments offer higher returns than office and retail properties because homes are usually sold within two to three years.

“The Singapore property market is still fairly hot,” said Jay Moghe, who oversees $150 million at Opes Prime Asset Management Pte in Singapore. “Within the Asian REIT story, Singapore has played an important part. These trusts offer relatively good yields and as that market develops, we'll see more players wanting to set up REITs.”

Lippo Group sold shares in its first real estate investment trust in Singapore in December. Its shopping mall REIT will sell shares within the next 18 months, while its commercial trust will be created within two years.

The real estate market has also been tapped into. The developer sold at least two apartment projects in Singapore's downtown in the past year, and is planning to start selling homes at a residential development on the city's resort island of Sentosa, Riady said. Shares of Lippo's First Real Estate Investment Trust, which owns seven health-care properties in the region, have gained 13 percent in the past six months. Still, it lagged behind other REITs traded in Singapore, which have risen by an average of 29 percent, according to data compiled by Bloomberg.

Malls remain Lippo’s greatest projects. The company owns Indonesia's biggest publicly traded developer and controls as many as 40 malls through its units, Riady said. The group also owns stakes in publicly traded companies including PT Matahari Putra Prima, Indonesia's largest department-store operator, and Robinson & Co., Singapore's oldest retailer. “We would like to see a mall REIT because at the end of the day, the middle-class and the affluent like to go to the malls,” he said “They like to go shopping, encouraging bigger and better-quality malls.”

The company intends to sell shares of its property trusts in Singapore because of government efforts to encourage investment and its low tax-rate for REITS, Riady said. Local corporate investors pay a 20 percent tax on dividends paid by trusts, while individual investors don't pay any taxes.

An important investor like Lippo is likely to take the property market of Singapore to new horizons. However, even if Singapore remains a stable market, what challenges remain in front of Lippo? Will it be able to tap into the Singaporean market without problems?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/06/will-lippo-concretise-5-billion-reits.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Infocomm industry the next boom for Singapore?

Singapore’s information communication industry grew by a record 20 percent on year to 29.50 billion US dollars. Minister for Information, Communications and the Arts Lee Boon Yang said at the launch of this year’s Info-Comm Media Business Exchange.

Mobile penetration rate in Singapore has gone up to 108 percent despite an already overcrowded market. Broadband adoption has also gone up form 64 present last year to over 68 percent.

The minister said Singapore is well into the process of developing a secure and trusted next generation network. “Twelve companies and consortia have been pre-qualified to build Singapore's Next Generation National Broadband Network. When it is ready in 2012, this network will be capable of speeds of at least 1 Gigabits per second and of supporting bandwidth-intensive applications that are decades into the future” he said.

Just last year, Singapore unveiled its ambitious 10-year infocomm masterplan which aims to triple infocomm export revenue to S$60 billion and create 80,000 new jobs by 2015.

Under the "wireless at Singapore" programmer, the country has more than 3,400 wireless hot spots islandwide, with another 1,600 being added by this September. Already about 430,000 people have signed up to enjoy the free wireless broadband access around the island, according to the minister.

Not content with just connecting residents, Singapore has also launched the Digital Concierge which allows tourists and visitors to access maps, shopping malls and restaurant listings online. Will Singapore find prosperity in its established and up-to-date infocomm structure? Will infocomm become a boom factor for Singapore’s economy in the near future? What are your views?

Post Title

→

Infocomm industry the next boom for Singapore?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/06/infocomm-industry-next-boom-for.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Ukraine: Singapore’s new profit-spinner?



With the Singapore Business Federation and the Singapore International Chamber of Commerce having signed framework agreements with Ukraine’s International Chamber of Commerce, Singapore companies are in a better position to enter Eastern Europe’s largest market.
Ukraine is looking into developing its other services sector beyond its existing agriculture and mining industries. As such, industry players are seeing increased opportunities in Ukraine’s real estate, infrastructure and tourism sectors for Singaporean firms.
“We’re looking at opportunities in real estate development and investment, including hotels,” said Kwek Leng Joo, Vice Chairman of Singapore Business Federation and Managing Director of City Developments. “But I see that there are possibilities in many other sectors as well,” he added. Kwek explained that the increased demand for hotels that is leading to a shortage, as well as residential properties are good opportunities there. “The local Ukrainians who have made it would now like to invest more in properties so there is a good demand for properties there.”
The Singapore and Ukraine collaboration does look promising, but there are still challenges that need to be overcome. The more apparent hurdles are language differences and limited transport links.
Kwek said that the two countries are still in the early stages of infrastructure development. However, he is hopeful that in due course, it will not pose as a problem as infrastructures like air access is developed in the long term.
Singapore is set to venture beyond Asia into the European countries, but will the two states be able to sustain the closer relations in the long run? Can both parties commit to tackling reforms in its banking and financial services sector, as well as developing its infrastructure?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/06/ukraine-singapores-new-profit-spinner.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

NETS levy raise: Inevitable or unnecessary?

Come July, Singaporeans will not only have to embrace the rise in Goods Service Tax that will be raised to 7% from the present 5%, they will also have to pay a higher administrative fee to use NETS, the cashless payment system that was introduced 22 years ago.
The proposal to increase the fee three to four fold was met with angry protests from the members of the public. Singaporeans are concerned that the raise of its levy on businesses offering NETS as a mode of payment will increase burden on retailers, ultimately translating to higher prices for consumers.
The Consumers Association of Singapore (CASE) has stepped forward to lodge a complaint against the fee hike to the Competition Commission of Singapore. Tony Wong, who owns a mobile phone store The Handphone Shop, said that the raise in levy will incur an additional S$5000 a month for him. “We might have to up prices, our business cost will go up, we will try to ask customers to pay cash, but it's tough. Sometimes they buy a few phones, and they don't have enough cash, and they never return after they go to the ATM,” said Tan. NETS transactions account for 50 per cent of total sales at the store.
The current fee NETS levied on businesses is between 0.35 percent and 0.55 percent. It will be upped to 1.5 to 1.8 percent in July, bringing it close to credit card transaction fees.
Owners of NETS – DBS, OCBC and UOB, has said that the hike is indispensable to remain competitive against international debit cards. It is readjusting its business model to that of international debit card schemes by paying an interchange fee – a fee paid to card issuers for transactions processed by NETS.

But the explanation does not satisfy CASE. President Yeo Guat Kwang reasoned that “If it is cost factors, then they must come out to justify what are the main reasons... What are the key cost factors which will make them think that the current fee that they are charging, 0.3 to 0.55 is too low? Too low, in what sense? Can't cover all the cost, or is the profit not enough?”
Even though NETS said that it plans to help small and medium sized merchants by offering a one-off rebate of up to 25 percent until the end of the year, and have spoke of a series of marketing programmes lined up to drive sales, members of the public are not buying it. NETS still hold a leading share of low cost cashless transactions. It is not only the preferred mode of payment for many Singaporeans, it is also used by 80 percent of HDB retailers. Thus, the raised levy in July will definitely have a large impact on the cost of products. Furthermore, the concurrent rise in GST in July will greatly affect consumers.
The price hike may not seem to affect consumers’ pocket directly, but to Singaporeans who are still sore about the GST hike, it will be them who will ultimately bear the costs. Is NETS really, as most consumers put it – exploiting their monopolistic mode of operation as a basic infrastructure to provide a basic mode of payment for all Singaporeans, or is the raised levy a purely commercial and inevitable decision? What do you think?

Post Title

→

NETS levy raise: Inevitable or unnecessary?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/06/nets-levy-raise-inevitable-or.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Are tax breaks the boost factor for petrochemicals?



Singapore will offer tax breaks on income from liquefied natural gas and carbon emission transactions to encourage overseas companies to invest in the city state. Trade and Industry Minister Lim Hng Kiang said that the government will levy a special tax rate of 5 percent on LNG trading income. The concession will be made available to all Global Trader Program (GTP) companies for 10 years. The country, which is the biggest oil trading center in Asia, will also extend tax concessions to greenhouse gas emissions trading.

Tax rate for companies will be cut by 2 percent next year in a bid to attract more investments by international companies. Samuel Liew, Singapore based consultant at Chemical Market Associates said that the tax break will “provide more incentive for international trading companies to set up offices here.” Some offshore traders like Australia’s Woodside Petroleum have been offered rates as low as 5 percent.

The implementation of the tax break goes in line with the government’s plans to build a LNG terminal. “We see enormous potential in LNG trading,” said Lim at the Global Trader Summit 2007 in Singapore. The city state is “attracting emissions trading activities, as well as supporting industries such as carbon-related consultancies, verifiers and fund managers” in order to establish itself as Asia’s emissions trading hub.

Traders of petrochemicals will also pay a lower tax rate of between 5 and 10 percent, Lim said.

Will these tax breaks be sufficient to bring significant expansion to Singapore’s energy and chemicals cluster and catalyze the growth of LNG trading? Is this move likely to spurn a wave of competition among energy-dependent countries for foreign investors? Your views.

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/05/are-tax-breaks-boost-factor-for.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

With new boeing jets, can Singapore Airlines face up to the challenge?




Singapore Airlines, the world's largest airline by market value, has been speculated to top the competition with the nine new Boeing Co. 777-300ERs after Airbus SAS postponed deliveries of its A380 superjumbo jet. The planes may have resulted in Singapore Airlines doubling its net income to S$549 million ($360 million) in the quarter ended March, according to the median estimate of six analysts surveyed.
Sales probably climbed 4.7 percent to S$3.55 billion. While the Airbus debacle slowed Singapore Airlines's expansion plans, the company replaced the missing jets faster than Emirates Airline and other carriers. Singapore Airlines received its ninth 777 in March. Emirates, the biggest A380 customer, with 45 on order, will let out five 777s as stopgap replacements for its superjumbos, it said. It won't get the 777s until the second half of this year.
SIA’s Chief Executive Officer Chew Choon Seng said that purchasing new planes would enhance service. The carrier previously ordered nine more A380s, raising its total to 19, and 20 mid-range Boeing 787s. It also signed a letter of intent to purchase 20 A350 XWBs, a twin-aisle plane that Airbus is developing. Singapore Airlines spent $360 million refitting its planes last year, including fixing business-class seats wide enough to fit two people.
Its passenger numbers rose 7.6 percent in the three months ended March to 4.6 million. It filled 81.1 percent of its seats, compared with 77.1 percent a year earlier. On the other hand, Dubai-based Emirates, is challenging Singapore Airlines on long-haul routes by expanding its fleet and adding destinations in China and India. Qatar Airways and Etihad Airways, based in Abu Dhabi, United Airlines Emirates, are following suit. At least 18 low-cost carriers are also now operating in Southeast Asia, including AirAsia. The airline, with a noteworthy fleet of 150 planes on order, may begin flying from Kuala Lumpur to Singapore by the end of next year. The rise of budget carriers spurred a 5.9 percent increase in Asia-Pacific international passenger traffic in the first quarter, according to the International Air Transport Association in Montreal.
Traffic, or the total distance flown by paying passengers, may rise 5.7 percent a year until 2010, according to the group, which represents 250 carriers worldwide. To fend the competition, Singapore Airlines is reducing costs by moving its call center services in the U.S., Canada, Australia and New Zealand to India to benefit from lower wages. The company has also created new friendships instead of rivalry as a tactic to woo more passengers. Malaysia Airlines has teamed up with SIA in the roll out of interline Electronic Ticketing, allowing SIA to issue eTickets to all destinations it services to passengers of both airlines.

Despite its efforts, SIA’s cargo volume fell 2.5 percent in the three months ended March because of increasing competition. It filled 60.1 percent of its freight capacity in the period, down from 64.1 percent a year earlier. However, Singapore Airlines had its passenger traffic increased by 9.8 percent in the three months ended March, outpacing growth in the Asia-Pacific region.

It is observed that Asia's airlines are facing the worst conditions in the cargo market since 2001. Capacity expansion is expected to outpace demand growth for the next two years. With the exporters moving more goods by sea instead of air owing to higher jet fuel costs, what other cost-cutting measures can a luxury airline like SIA take to fend against narrowing cargo margins? It is evident that SIA is depending on the profits from passenger traffic to offset its cargo losses, but with the rise of budget airlines sharing the same air routes, can SIA be sure of continuing its winning streak?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/05/with-new-boeing-jets-can-singapore.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Will SIA ever get to travel the trans-Australia route?



Although demand for seats are growing very quickly, Australia denied Singapore Airlines (SIA) permission to share Qantas’ advantageous trans-Pacific route as the Transport Minister Mark Vaile said the Sydney-Los Angeles course would remain exclusive ‘for some time’ to Qantas and local budget flyer Virgin Blue.

Singapore Airlines commented that the demand outgrowing supply by almost one percent was indicative of the increased competition on the US-Australia route.

SIA’s decade long campaign for access has been denied by the Australian government, as Qantas makes 20 percent of its profits from this route, making Qantas a ‘key national asset’. Vaile’s spokesman announced that ‘the government has reaffirmed that it has no plans to revisit the issue of rights for Singapore Airlines to operate beyond Australia to the United States for some time.” He further commented that the rising demand will be met by Virgin Blue’s new flights to the United States, as they have acquire seven Boeing 777-300R, and are optioning for six more. The service will start in late 2008. Will SIA’s persistence of the trans-Australia route ever pay off? Do you see Australia accommodating SIA’s request in the near future?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/05/will-sia-ever-get-to-travel-trans.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Are we ready for a monopoly?



Shares of SMRT are expected to rise to a record on optimism Singapore's largest subway operator will be acquired by a rival after a report said ComfortDelGro Chairman Lim Jit Poh suggested a merger.

Lim's proposal followed the government’s suggestions on how to increase the use of public transport, local media reported.

“SMRT is being seen as the takeover target and investors are betting on a controlling premium should a bid materialize,” said Nicole Sze, investment analyst at Bank Julius Baer &Co in Singapore, which manages $360 billion worldwide. “A merger will also benefit ComfortDelGro because it gives them a virtual monopoly on land transport in Singapore.”

A merger would help the companies reduce costs by combining their routes and streamlining operations, resulting in the creation of the largest land-transport company in an island-state that's trying to optimize its limited land space as the population and industries expand. Singapore has one of the highest population densities in the world at more than 6,000 people per square kilometer.

Lim's other proposal was for one company to operate bus services and the other to run Singapore's subway system, local media reported.

“Ultimately, the model should be one that will provide good service to fully support the infrastructural needs of Singapore and its future developments,” SMRT said in a statement April 20. “Having operated trains and buses for over five years, we have grown to understand the synergistic benefits
of a multi-modal model, and this is our preferred mode.”

ComfortDelGro, which was formed from the union of Comfort Group and DelGro in 2003, is the operator of the world's second-largest fleet of buses, taxis and rental vehicles. Its SBS Transit unit operates the northeast train line in Singapore. SMRT also provides bus, taxi and charter services.

Singapore is attempting to encourage more people to travel via public transport to reduce congestion on its roads. The government’s goal is to increase the proportion of trips on public transport during the morning peak hour to 70 percent from 63 percent in the next 10 to 15 years.

“Singapore's a small market, so some sort of rationalization will strip costs and boost the bottom line,'' said Daphne Roth, vice president of equity research at ABN Amro Private Banking in Singapore. “There's no real competition anyway.”


Should we look forward to such a merger or be wary? Will a monopoly over land transport better Singapore’s public transport or will it give people another excuse to avoid public transport?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/04/are-we-ready-for-monopoly-shares-of.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Will the Tiger get its claws on the kangaroo with its IPO?

Will the Tiger get its claws on the kangaroo with its IPO?


Tiger Airways, the budget carrier in which Singapore Airlines has a stake of 49 percent, may sell shares in an initial public offering within the next two years, as it plans to expand overseas.


“Conditions must be right and we have to have an agreement with all the shareholders,” Singapore Airlines' Chief Executive Officer Chew Choon Seng said. He added that a sale this year will be “unrealistic”.


Tiger Airways plans to open as many as five bases overseas within three years, as it faces increasing competition Asia from at least 17 other budget carriers within Southeast Asia such as Jet Star Asia. Tiger Airways said it has received Australian approval to fly to the western city of Perth in Western Australia state, the carrier's second destination after Darwin. Starting March 23, the carrier will fly four times a week to Perth and intends to expand the schedule to a daily basis from May onwards.


“They will be well-received by the market because of their position in Singapore, who their shareholders are, their fleet expansion and their move into Australia,” said Peter Drolet, an analyst at UOB Kay Hian.


Tiger Airways’ decision to expand overseas has drawn mixed reactions. Critics say that Tiger Airways’ entrance into the Australia might trigger the mother of all low-cost domestic airfare wars against Virgin Blue and Qantas. Tiger is also expected to test the nerves of unions, given signs it could seek individual workplace agreement.


Since its birth, the budget airline industry has been increasingly competitive in most countries. With a history of other budget airlines such as Valuair making huge losses, is Tiger Airways’ decision to go ahead with its plans to expand overseas, risking unreasonable protectionist measures and fatal price wars? Your thoughts.

Post Title

→

Will the Tiger get its claws on the kangaroo with its IPO?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/03/will-tiger-get-its-claws-on-kangaroo.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Is this the first step in Singapore’s path to F1 victory?

Is this the first step in Singapore’s path to F1 victory?



Singapore will be host to Royal Bank of Scotland Group’s (RBS) global RBS Grand Prix Challenge from March 28 to April 4. The Grand Prix Challenge will be open to members of the public competing to set their fastest lap time in a state-of-the-art AT&T Williams F1 simulator based around a full-size F1 show car.

The three fastest drivers will compete against F1 drivers, Alex Wurz and Narain Karthikeyan, in the grand final on April 4. The overall winner from each country will then be flown to Europe to represent their country and compete in a real car, on a real race track, under the guidance and tuition of racing experts.

Three times F1 World Champion and RBS Global Ambassador, the legendary Sir Jackie Stewart will be on hand to greet fans on April 4 from 10:00 am.

Singapore’s Minister of State for Trade and Industry, S. Iswaran, said that the government was "willing to support such a venture up to a level commensurate with the broader benefits to the economy."

Iswaran believes that the attention and buzz that it generates will expose Singapore to a very different audience from that in the business and financial world, ultimately bringing about benefits to Singapore’s hospitality, retail and travel industries.

Do you think that the increased tourism revenue from F1 sports will bring about spill-over gains for associated industries in the long term, or will it reap an insignificant boost for Singapore’s economy? What are your thoughts?

Post Title

→

Is this the first step in Singapore’s path to F1 victory?

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/03/is-this-first-step-in-singapores-path.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Can the Singapore economy continue to prosper?


It seems like it's going to be a rosy year for Singapore's economy with domestic spending likely to strengthen. In addition, inflation is expected to be contained even though the government lifted tax on goods and services. Trade and Industry Minister Lim Hng Kiang said that Singapore is in "good shape" and the island-nation will see another year of "robust" growth.

"Global economic growth is expected to be slower, but overall the external environment is still positive," Lim said. "Domestically, consumption is likely to strengthen, while investments will remain firm. We expect inflation to remain in check even with the impending GST increase in July." The labour market is "tight" with the unemployment rate at 2.7 percent last year and wages are rising, Lim said. According to the Ministry of Manpower, employers added 173,300 workers to payrolls last year. The marine industry will require about 15,000 new workers this year.

Singapore's economy is now more cushioned against volatile business cycles because the government has diversified the island's growth drivers. Singapore will focus on education, health care, water and environmental technology, alternative energy and digital media as future growth drivers, Lim said.

The government also said it concluded the seventh round of discussions with Canada for a free-trade accord that will boost business and investment between the two nations. "Our international trade linkages have never been stronger," Lim said. "Our FTAs have helped our companies achieve tariff savings of over S$470 million ($308 million) in 2006 alone. We are in active negotiations for 10 more free trade agreements."

There seems to be good news all around. However, things may not remain positive forever. Globalization ensures that no nation stands in isolation and an economic slowdown for a major power like the U.S. may change Singapore’s economic climate rapidly. Singapore is doing well in diversifying. It may be a sufficient measure for now but how long it will last still remains to be seen. What do you think?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/03/can-singapore-economy-continue-to.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection

Will Genting miss the Singapore jackpot?




Just when the casino projects are starting to gain momentum, a bombshell has been dropped on the proceedings. In an officially released statement, it said that Singapore awarded the Genting International-led group the right to develop an "integrated resort" on the city's Sentosa island and the issuance of a casino license was a "separate matter." What this means that even after they have fully constructed everything, they might still not be allowed to operate the casino.

"The procedure is when they finish building everything, they have to apply for a casino license and based on the criteria the government judges them by, they will grant the license," said Winston Liew, an analyst at OCBC Investment Research. "That's the original tender conditions. It's not new."

While the statement is in conflict with general belief that Genting, with its partner Star Cruises, will be running the show in Sentosa, it is consistent with the government's earlier statements. When the Singapore Tourism Board asked for bids for both resorts in 2005 and 2006, it said the operators could only apply for a casino license when at least half of the proposed gross floor area had been completed, and at least half of the committed investment had been expended.

The statement was in response to media queries after newspapers reported the government was concerned over the group's partnership with Macau casino owner Stanley Ho. Ho and other investors said they will hold a combined 6.99 percent stake in Star Cruises, which in turn owns 25 percent of Singapore's second casino-resort. The Singapore government said that it will not grant the gaming license unless the operator and its associates have a good reputation and sound financial background. It defined an associate as anyone who holds "any relevant financial interest," or holds the position of a director or manager, or has voting rights.

While the apparent lack of assurance in securing a casino license caused a drop in the shares of Genting International and Star Cruises, Genting International said in response it's "committed" to the resort and to meet the "suitability requirements" of the authorities for a casino license in Singapore. Perhaps it is not time yet for Genting to be cashing in their chips. What do you think?

Post Title

→

Post URL

→

https://manufacturing-holdings.blogspot.com/2007/03/will-genting-miss-singapore-jackpot.html

Visit manufacturing-holdings for Daily Updated Wedding Dresses Collection