DAILY MARKET UPDATES 15th July 2008

WTO gives S'pore excellent reviews
Singapore’s economy is still one of the most open and competitive in the world, the World Trade Organisation (WTO) said. Despite its high degree of openness, the economy's flexibility has enabled it to adjust to external shocks, by lifting productivity and competitiveness. 20 WTO members commended Singapore for its open and competitive economy and its commitment to globalisation through actively participating in the Doha global trade negotiations. But Singapore faces long-term challenges, such as the risk of external shocks and an ageing population. Singapore has to cope with challenges such as competition from low-cost producers and wage inequality between skilled and less skilled workers.

- The Straits Times, H18




Singapore praised in WTO trade review
Singapore was lauded for setting high standards in trade and investment liberalization at the WTO trade policy review. WTO acknowledged that Singapore's import tariffs are now virtually zero and its total merchandise trade grew to nearly 4 times its GDP with substantial foreign direct investment inflows amounting to one-sixth of the GDP last year. Singapore's second permanent secretary said that Singapore succeeded in addressing risks from globalisation and liberalisation by seeking to enhance competitiveness, build new capabilities, and ensure opportunity for all segments of society.

- The Business Times, P21



Condo sales at showflats tapering off
While City Developments sold 96 units last week at its Livia condo, developers of most other projects suffered declining sales at their showflats. So far, 256 out of the 320 units released have been sold, with an average price of $650 psf. There are generally strong turnouts at showflats last weekend, although take-up slowed. Sim Lian sold 19 units last week at Clover By The Park, less than the 59-unit sales it achieved in the preceding week. To date, Sim Lian has sold 273 of the 616 units in the project. The 99-year leasehold project's average price remains at $750 psf. Sim Lian also sold 1 unit at The Amery last week - less than the 4 units it sold a week earlier. NTUC Choice Homes and Ho Bee sold another 9 units at Dakota Residences last weekend. This brings total sales to 170 units in the 99-year project, which has an average price of about $980 psf. The developer of Kovan Residences sold about 20 units last week, bringing total sales to over 100 units. The average price is $870-900 psf. MCL Land sold another 3 units at its D-Pavilion, a freehold project priced at $900 psf on average last week - less than the 10 units in the preceding weekend. Frasers Centrepoint previews this weekend Woodsville 28 near Potong Pasir MRT Station. The 110-unit condo will have an average price of $880 psf. The 99-year leasehold development comprises two 17-storey blocks. The 2- and 3-bedder units, with respective average sizes of 883 sq ft and 1,195 sq ft, are 5-6% smaller than conventional units to fit the profile of the market it’s targeting - those just starting families or young couples. 2-bedroom apartments start at $700,000 and 3-bedders from just over $1 million.

- The Business Times, P32



Outlook bright for Singapore economy? Yes, but...
Singapore’s transformation into an international cosmopolitan city will keep the economy buzzing in the medium to long term. Mr Lee said that the next 5 to 10 years will be the most promising in Singapore's history, stemming from efforts to make Singapore a vibrant city where talented people from around the world would want to live. But analysts, while generally backing MM Lee Kuan Yew's bullish view of the economy, warned that the good times may be some time coming. They said rising inflation and slowing global growth were casting a shadow over the immediate outlook. Economists warned that while the current slowdown is cyclical, it may be some time before things return to normal.

- The Straits Times, H18




Keppel Land still bullish on Vietnam
Keppel Land (KepLand) remains bullish about the Vietnamese market despite the country's widening trade deficit and soaring inflation. It said Vietnam's economic woes had sparked fears of a possible devaluation of the dong. But this would unlikely have a major impact on KepLand's projects there as its rental income and residential sales are priced in US dollars, KepLand said. Annual inflation in Vietnam soared to 25.2% in May. But first-half economic data was slightly more encouraging. A total of US$31.6 billion (S$42.8 billion) in foreign direct investment had been pledged in H1, up 3.7 times year on year. KepLand also believes that challenging conditions had some positive impact, with speculative buyers retreating and smaller developers being forced out of the market. KepLand has $360 million of assets in Vietnam which accounted for 6.5% of the group's total assets in Q1 this year.

- The Straits Times, H16



Yuan hits new high as China focuses on inflation
China's yuan yesterday climbed to its highest level since 2005 on signs that policy-makers will seek a stronger currency to rein in inflation. The yuan rose for a third day yesterday, extending its gain this year to 7%, surpassing the 6.86% advance for all of 2007. Q2 gross domestic product may rise 10.3%, according to economists surveyed by Bloomberg News. A global slowdown, rising production costs and a stronger yuan have hurt Chinese exports, threatening profits and jobs.

- The Business Times, P16




Jakarta's consumer confidence falls to 32-mth low
Indonesia's consumer confidence index fell to a 32-month low in June on concern that inflation will erode incomes. The measure declined to 79.1 last month from 82.4 in May, according to a Bank Indonesia survey. A reading below 100 indicates pessimists outnumber optimists. Indonesia’s central bank on July 3 raised its key rate to 8.75% from 8.5%, seeking to keep inflation from exceeding its year-end forecast of 11.5 to 12.5%.

- The Business Times, P17



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