News Highlights Wednesday 19 March 2008

2008 will be most difficult year for economy, says Wen
Beijing has set a target for the country’s economy to grow by at least 8% this year, and for the creation of 10 million jobs. But with rising prices now topping the government’s agenda, there are concerns that tougher moves to fight inflation would come at the expense of economic growth. The government ordered banks yesterday to set aside more reserves in a bid to rein in growth in lending and dampen inflation. Banks must keep 15.5% of their deposits with the central bank as of next Tuesday, up from 15% previously, according to the Central Bank. The Central Bank governor also indicated that he might raise interest rates.

- The Straits Times, P10



UBS’s Asia Pacific unit in good shape: CEO
UBS banking group says its Asia-Pacific franchise remains robust and continues to enjoy strong growth, and current problems in the US financial market stem from a cyclical bump which is unlikely to impact the long-term health of the business. UBS’s chairman and CEO for Asia Pacific said that the bank’s Asia-Pacific business had grown by almost 400% over the last 3 years and the outlook remained good. He rubbished market rumors and analysts’ prediction that UBS would have to take more write-downs. He also said that given its strong franchise across the region, the bank would invest more resources and manpower to grow its business in Singapore and across the region. Singapore is the second largest booking centre for UBS’s global wealth management franchise, after Switzerland.

- The Business Times, P2



Jurong West landed plot not awarded
The government yesterday said that it is not awarding a landed housing parcel in Jurong West – because the bids were too low. When the tender for the 151,759 sq ft site closed this month, there were just 2 bids - $11.8 million – or $77.80 psf – from Boon Keng Development, and $10.3 million, or $68.10 psf, from Sunway Concrete Products. These bids were significantly below the $200-250 psf of land area that analysts reckoned the site could fetch. It is estimated that 50 to 60 landed homes can be built on the 99-year leasehold site in Westwood Avenue.

- The Business Times, P8



HDB’s 2nd BTO project takes off
HDB launched its second build-to-order project yesterday. Jade Spring @ Yishun (Phase 2) will have 576 flats for sale, which received 247 applications on the first day of its launch yesterday. Jade Spring will comprise mostly four-room flats, costing $189,000-$253,000 for unit sizes of 92-97 sq m. Three-room flats will cost $124,000-$141,000 for unit sizes of 67 sq m. Two-room flats will cost $77,000-$97,000 for unit sizes of 47 sq m. The project is at the junction of Yishun Ring Road and Yishun Avenue 11. With 494 flats launched last month, HDB has made available a total of 1,070 flats so far. It says 5 more BTO projects – 2 each in Punggol and Sengkang and 1 in Woodlands - will be launched by June and they will make available 3,430 flats, taking the total number to 4,500 for the first half of 2008. Cushman & Wakefield managing director said that demand for BTO flats is expected to remain firm despite volatile economic conditions worldwide. He also says that because there are few launches at the low end of the private residential market, the sector is not likely to be affected by new BTO projects.

- The Business Times, P9