DAILY MARKET UPDATES 5th September 2008

CCT signs up leases for 77,900 sq ft in 2 office towers
CapitaCommercial Trust (CCT) says 77,900 sq ft of office space at Capital Tower and One George Street has been renewed or newly committed for between two and three years. Three companies account for the leases - JPMorgan Chase & Co, BHP Billiton and Shinhan Bank. Rents are in line with rates achieved at comparable Grade A office buildings - $16 to $20 psf pm. CapitaLand will lease 1,313.2 sq ft of office space at Capital Tower for three years for a sum of $449,125.92. The monthly rent works out to about $9.50 psf pm. BHP Billiton is also leasing about 150,000 sq ft at Tower 2 of the Marina Bay Financial Centre, slated for completion in Q2 2010. At One George Street, South Korean bank Shinhan Bank has taken space to grow its business in Singapore.
- The Business Times, P4 –
(also see The Straits Times, B - “CCT inks top-rate leases at two prime office buildings”
Private banks want slice of NRI action
Private bankers have set their eyes on the rising wealth of non-resident Indians (NRIs) whose businesses are usually closely tied to the booming Indian economy. Some banks, such as Barclays Wealth, are looking to expand their team of relationship managers working on this segment as they expect the NRI slice of their private banking pie to grow quickly. The growth in the assets under management in the NRI segment has been rapid, with SG Private Banking projecting a steady growth of 35-40% in Asia. Barclays Wealth is making sure that its team consists of bankers who are familiar with specific geographies and languages to better tap the different markets. Both SG Private Banking and Barclays Wealth have designated Singapore as a hub for their NRI business. SG Private Banking is also one of the sponsors for a business-focused conference for NRIs here on Oct 9 to 11.
- The Business Times, P2
Three MI-Reit properties gain $1.3m in revaluation
Three properties under MacarthurCook Industrial Reit (MI-Reit) have gained $1.3 million in value from a year ago. MI-Reit's manager, MacarthurCook Investment Managers (Asia) Ltd, released new independent valuations for seven industrial properties. The value of four other properties remained unchanged from the previous year. The seven properties were valued at $227.6 million as at Sept 1. MI-Reit expects the demand for industrial properties in Singapore and in the Asian region to remain healthy on the back of strong prospects for Asia.
- The Business Times, P5
Commercial spending here up 35% in 2007
Commercial spending in Singapore jumped 35% to US$371.58 billion last year, from US$275.2 billion the year before - the third fastest growth in the Asia-Pacific after Myanmar at 41% and Hong Kong at 36%. The five Asia-Pacific countries with the biggest commercial spending were Japan, China, India, South Korea and Australia. For Asia-Pacific as a whole, commercial spending grew 13% to US$18.9 trillion last year, Visa's Commercial Consumption Expenditure (CCE) index shows. To calculate the index, Visa takes into account business-to-business purchases of goods and services required for production, government spending, wholesale and retail purchases of final products and some private fixed investment.
- The Business Times, P8
S'pore, China reach free trade accord
Singapore has become the first Asian country to conclude a bilateral Free Trade Agreement (FTA) with China, a move that will boost economic and trade ties between the two countries even further. The Singapore-China FTA will cover a range of areas including trade in goods and services, movement of people, investment, customs procedures, technical barriers to trade, and economic cooperation. Deputy Prime Minister Wong Kan Seng said that the pact will result in liberalisation, the lowering of tariffs for many goods, services, investments, and so on. For Singapore businesses, there will be better access to the Chinese market.
- The Straits Times, A1
Indian Chamber opens office in Delhi
The Singapore Indian Chamber of Commerce & Industry (SICCI) is setting up a new office in New Delhi, to help identify potential business opportunities in the country. SICCI has more than 760 members, of which half are from small and medium-sized enterprises. Another aim is to help local businessmen understand Indian society better, culturally. Other business associations like the Singapore Chinese Chamber of Commerce and Industry (SCCCI) are also welcome to make use of the SICCI's contacts in India.
- The Straits Times, B34
Orchard Central duplexes split up
Orchard Central mall will no longer house two-storey shops, or duplexes, on its ground floor as had been announced. The three duplexes planned for level 1 have been split into single-storey units and leased to retailers wanting smaller premises. Industry watchers said demand for the higher-rent duplex stores is likely to have waned due to the economic slowdown. The 14-storey mall is slated to open early next year. Far East said that there is more demand for single-floor units, and that the key level 1 shops facing Orchard Road have been snapped up.
- The Straits Times, B36
ECB, Bank of England hold rates steady
The European Central Bank and the Bank of England both held interest rates steady, reinforcing the view of investors that the global rates cycle has peak ed as growth risks start to outweigh inflation worries. The ECB kept its benchmark interest rate at 4.25% and the BoE held steady at 5%.
- The Business Times, P14
Bank Indonesia remains cautious
Indonesia's central bank increased its benchmark interest rate for a fifth straight month by a quarter point to 9.25%. Consumer prices in Indonesia rose 11.85% in August from a year earlier, after increasing 11.9% in July. Indonesia's US$365 billion economy expanded 6.4% in Q2 from a year earlier, after growing 6.3% in Q1.
- The Business Times, P10
Defections forcing UK to review tax overhaul
A proposed overhaul of Britain's corporate tax regime has triggered defections to more business-friendly countries, adding to the woes of a Treasury facing declining corporate receipts amid an economic downturn. Uncertainty over corporate tax has forced many businesses to consider their options and mull an overseas move. Critics of the UK's corporate tax system see a regime which has fallen behind Europe and Asia, which have taken bold steps to make their countries more attractive to international businesses. The Confederation of British Industry said that the UK corporate tax system is unsustainable in the long run.
- The Business Times, P14

¯ ST Index change 2,626.05 (-80.48)
SIBOR (3 mths): 1.19643 (S$)
SWAP (3 mths): 1.30872 (S$)