News Highlights Friday 2nd May 2008

S'pore doing okay, but much hinges on how US performs
The economy has done all right so far, growing 7.2% in the first three months. But Singaporeans will have to stay prepared and be on guard for possible slowdowns for the rest of the year and maybe into next year - depending on how the United States' economy performs. Giving his take on the impact here of an economic downturn in the US, Prime Minister Lee Hsien Loong said that it would depend on the shape of the slowdown. He remains confident Singapore's economy can achieve the 4-6% growth that has been forecast, and noted the good performance of the first three months.


- The Straits Times, H4








Temp office site in Newton draws four bids
Sun Venture (S) Investments, a development and property asset management company owned by interior design firm DB&B, put in a bid of nearly $33 million for a second temporary office site on Scotts Road and Anthony Road. This price translates to $226 psf of gross floor area, which is about 7% lower than UOB Kay Hian's recent bid of $242.50 psf for the first transitional plot at the same location. These bids remain above the top bid of $219 psf for an earlier transitional site in the area - Scotts Spazio. The second plot on Scotts Road and Anthony Road has a size of 97,284 sq ft and, like the first, comes with a 15-year lease. The Government has now offered four transitional office sites, which would yield about 650,000 sq ft of space, said Knight Frank.




- The Straits Times, H15








Private banks roll out special units targeting mega-rich
More private banks in Singapore are rolling out new special units to cater to Asia's super wealthy - a lucrative but largely under-served segment. Banks observe that the region's mega-rich, who have well over US$30 million (S$41 million) in investible assets each, are moving more wealth to Singapore. The super wealthy grew in number to well over 17,500 in 2006 across the Asia-Pacific region, up 12% from the previous year, according to a Capgemini/Merrill Lynch report. While there is no official data for the amount of assets ultra-rich clients booked in Singapore, one senior banker reckons growth rates may be anywhere from 10-25% for some banks last year. Ultra-high net worth clients in Asia who book assets in Singapore are largely entrepreneurs from Indonesia, the Philippines, Thailand, China and India. One sign that Singapore is increasingly becoming popular as a booking centre for the super wealthy is that banks here are setting up dedicated units and teams to serve them.


- The Straits Times, H16








Credit crisis more than half over, says US Treasury chief
US Treasury Secretary has said the credit crisis, now in its ninth month, is probably more than half over, retaining his forecast for the United States economy to keep growing. The Federal Reserve cut its benchmark interest rate by a quarter percentage point to 2%, its seventh reduction since September last year. The Fed said the substantial amount of easing would help foster growth.


- The Straits Times, H14








Developers offering private equity funds plum deals
Private equity funds sense their time has come in the Indian property arena, with developers offering plum deals as banks tighten lending and a stock market slump shuts off public share offerings. Since India eased rules on inward investment in the construction industry in early 2005, foreign investors have earmarked an estimated US$20 billion for the booming property market. But government figures show that only about US$2 billion has actually been spent in the last three years. Indian banks are banned from lending for land purchases and the central bank has raised the cash reserve ratio by 75 basis points in the last two weeks, which could crimp other loans and raise lending rates from the 12-13% charged now.


- The Business Times, P11








Inflation 'flare up' can be contained: central bank
The Indian central bank ordered banks for a second time this year to set aside more money to slow lending and tame inflation now running at 7.33%. The bank left its policy interest rates unchanged. India's US$912 billion economy, Asia's third largest, may expand between 8-9% this year, said the Finance Minister. The central bank expects the economy to grow between 8-8.5% this year.


- The Business Times, P11








S'pore firms urged to venture into China inland cities
Singapore businesses looking to break into China's booming market should train their sights on second-tier inland cities in provinces such as Henan and Jiangsu, said speakers at a recent business forum. The speakers acknowledged the importance of the huge Chinese market to Singapore's businessmen, and noted that second-tier inland cities are currently not seeing the same level of economic development as major coastal cities such as Shanghai and Beijing.


- The Straits Times, H14








Kepland in China Housing Project
Keppel Land has inked a joint venture with Sunsea Yacht Club (HK) to develop waterfront homes in Zhongshan in China’s Guangdong province. It will hold 80% stake in the project. Targeted at upper middle to upper income segments, the projects will yield villas with private berths, as well as condominium units and serviced apartments.


- The Straits Times, H15