DAILY MARKET UPDATES 17th September 2008

Marina Bay to Sparkle
Plans for the last two links of the Marina Bay chain have been laid down, completing a 3.5km waterfront loop joining up the attractions in the bay area. They are an 800m water-misted stretch along Bayfront, adjacent to Bayfront Avenue as well as a 400m shady walk through pavilions under large solar-powered fans along Marina Boulevard. The uninterrupted waterfront promenade will cost $35 million to build. When ready around the end of next year, visitors will be able to walk a loop linking the Merlion Park, Esplanade Theatres, the ArtScience museum and integrated resort (IR), Marina Bay Financial Centre and The Fullerton Heritage. The main attraction is a 300m-long stainless steel tube-like structure, which can be as high as 10m, equipped with audio speakers, night-lighting and spray misters. The announcement for the final two links has come 18 months after URA unveiled its plans for the first, a double-helix bridge linking the IR site with the Singapore Flyer. The bridge will be up around the end of next year. The Marina Bay loop will be part of a longer 11.7km waterfront route around the Marina Reservoir, linking the Gardens by the Bay, the Marina Barrage and the new Sports Hub.
- The Straits Times, A8
Orchard Road Sales Up after ERP Expansion
Retail sales in Orchard Road went up, not down, after the Electronic Road Pricing (ERP) network in the shopping belt expanded, according to a LTA study. In October 2005, ERP gantries in Orchard Road stared operating on Saturdays. ERP hours on weekdays were also extended from 7pm to 8pm. But in the year after the changes, sales went up by 9 per cent, more than double the 4 per cent growth the year before. The figure is also higher than the growth rate for businesses outside the Central Business District during the same period, Transport Minister Raymond Lim said.
- The Straits Times, B8
Condos to have Recycling Facilities
A new law was passed yesterday giving the Director-General of Public Health powers to require owners or occupiers of any premises to provide recycling facilities on their grounds. The change to the Environment Public Health Act will come into effect on Nov 1. It is necessary because only 38 per cent of the 150,000 households in condominiums and private apartments islandwide have access to recycling facilities on their estate grounds. In comparison, residents in HDB flats and landed private properties, comprising 87 per cent of households here, have easy access to recycling facilities on their estate grounds. The Government’s target, under the Singapore Green Plan 2012, is to raise the recycling rate from the current 54 per cent to 60 per cent by 2012. The NEA will notify condominiums and private apartments about the new requirements, starting with those that have more than 50 units. Upon being told, they will have six months to comply. Offenders will face a fine of not more than $5,000, which may be compounded.
- The Straits Times, B8
MICE Industry still looking up
Among next year's key international events is Sea Asia, an exhibition and conference for the shipping industry, which is expected to draw 10,000 participants, four in 10 from overseas. Singapore Expo has signed up 10 exhibitions and trade shows next year, of which three are international ones; Suntec Singapore has at least eight, with many more not firmed up yet. In the latest study by Union of International Associations, Singapore is the top venue of choice for international meetings. The Singapore Tourism Board aims to double the spending by business travel and Mice visitors to $10.5 billion by 2015. Last year, this sector accounted for nearly three million of the total 10.3 million visitors. Although business travellers made up less than a third of all visitors, they splurged a record of more than $5 billion - about 40 per cent of what all tourists here spent.
- The Straits Times, B7
Executive Condo Site Released in Punggol
A new EC Site in Punggol has been released for sale by the Housing Board. A development of 16 storeys and about 600 apartments can be built on the plot at the junction of Punggol Field and Punggol Road. The 99-year leasehold site is 242,159 sq ft in size and has a potential gross floor area of 726,477 sq ft. Property consultants expect lukewarm response from developers despite the site’s attractive location near the Punggol MRT Station, Cove Station and the future Punggol Town Centre. Knight Frank predicts fewer than five bids and thinks the site can fetch $73 million to $87 million, or $100 to $120 psf or gross floor area. Finished units could be launched at $500 to $550 psf, based on recent home sales in the area. This is the fourth EC site the Government has put on the market this year and the only one under the confirmed list. The other three sites made available this year – in Jurong West St 42, Yishun Ave 11 & Sengkang East Ave – were put on the reserve list. So far, no interest has been express in these three sites. The tender for the site will close on Nov 11.
- The Straits Times, B42
Guangdong Woos S’pore Investors with 150 Projects
Guangdong, has released 150 new projects to woo Singapore companies to invest there. The projects, which cover many sectors are set to enhance Guangdong's reputation as one of the top three foreign direct investment destinations for Singapore companies in China. In the next five years, Guangdong will invest over US$150 billion in over 200 key projects. At the Guangdong-Singapore Business Conference yesterday, 23 contracts worth a combined US$4.4 billion were signed. Trade between Singapore and Guangdong grew more than 20 per cent to US$13.7 billion in 2007. Last year, Singapore was Guangdong's fifth-largest foreign investor. Since 2002, the value of two-way trade has grown by an annual average rate of 20.3 per cent. Many Guangdong companies have seen the benefits of using Singapore's capital markets to raise funds for further expansion. Of the 143 Chinese companies listed on the Singapore Exchange in April this year, about one in six are based in Guangdong.
- The Business Times, P14
China may Cut Rates again, Boost Spending
China may cut interest rates again, ease limits on bank lending and boost spending to spur economic growth after lowering borrowing costs for the first time in six years. China last week released data indicating the economy slowed. Inflation cooled to 4.9 per cent in August, export growth slowed and industrial production expanded by the least in six years. China's economy expanded 10.1 per cent in the three months to June 30 from a year earlier, the fourth straight quarter of slower growth. China has already slowed gains by the yuan against the dollar to protect jobs and raised export-tax rebates for garments and textiles. The Asian Development Bank forecast China's economy will expand 10 per cent this year. It cut its prediction for next year to 9.5 per cent from 9.8 per cent.
- The Business Times, P14
No Rise in Global Corporate Taxes
For the first time in 14 years, a survey of 106 countries and territories has found there was no rise in corporate tax rates in the last year. The growing trend is to use indirect taxes, such as Singapore's Goods and Services Tax, and tougher enforcement to maintain government coffers. The survey, conducted by KPMG International, found that the global corporate tax rate stood at 25.9 per cent as at April 1 this year. That is down by under one percentage point from a year earlier. The highest average corporate tax rates are found in the Asia-Pacific, where rates fell by 0.8 percentage point to stand at 28.4 per cent. Singapore has one of the lowest corporate tax rates in the region at 18 per cent. Globally, the average indirect tax rate, which also takes the form of Value-Added Tax, is 15.7 per cent, with little movement over the past five years. The lowest average indirect tax rates are found in the Asia-Pacific region at 11.14 per cent, with a rising average rate of 0.5 per cent since 2006. India is engaged in merging state-based indirect taxes as a prelude to introducing a country-wide GST by 2010. Companies are tightening up on enforcement as well. India, for instance, has adopted a tough attitude to companies using the country's low tax base to improve profit margins elsewhere in the world.
- The Straits Times, B20
S'pore 9th most competitive in IT
Singapore, along with three other Asia-Pacific nations, is among the top 10 countries in the world in information technology (IT) competitiveness, according to a study by the Economist Intelligence Unit (EIU). Singapore had the ninth most competitive IT industry in the world, up from 11th position last year. The study assesses and compares the IT industry environments of 66 global economies to determine the extent to which they enable IT sector competitiveness. The study found that Singapore performed well in a number of areas, including its business environment, which was ranked ninth in the world and third in Asia. Singapore's IT infrastructure also continued to improve with it being ranked 11th in the world, up one notch from the previous year. Singapore's human capital was ranked second in the world again due to the high quality of IT skills and the labour force. The Republic also got a high ranking for IT industry development. It kept its third-highest ranking in the world, the same position as last year.
- The Business Times, P16
S’pore Growth may Fall below 4%, says Economist
With a global economic slowdown in train, the Economic Growth Centre predicts that growth for the third quarter will come in at just 1.9 per cent. It will rise in the following three months to 4.9 per cent on the back of an improved performance in the manufacturing and services sectors. A rapid pickup next year is unlikely, with growth expected to come in at 4.2 per cent for the year. The manufacturing sector is expected to contract by 4.2 per cent this quarter and grow by 1.3 per cent in the fourth quarter. Forecasts show that inflation is expected to come down next year to 3 per cent from 6.7 per cent this year. The labour market is expected to be quite robust. About 51,000 jobs are expected to be created this quarter and 41,000 in the fourth quarter - well under the 71,400 jobs added in the second quarter. Unemployment is expected to remain at between 2.3 per cent and 2.4 per cent for the rest of the year.
- The Straits Times, B24

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