DAILY MARKET UPDATES 11TH October 2008

S'pore is 4th cheapest place to raise expat kids
Singapore emerged fourth cheapest for expatriates to raise their children, after Spain, India and China, in a survey by HSBC Bank International of 870 expatriate parents across 14 places. In the poll, the cost of raising a child included - but was not restricted to - the cost of education. Almost four in 10 of those in Singapore who were polled said it was cheaper raising junior here than in their home countries. Another 25 per cent said the cost was about the same. The survey also asked these expatriate parents to rate the countries they are living in, in areas such as the amount of time their children spend studying and being outdoors, and whether they think their children will remain in their adopted country upon growing up. Using these criteria, Singapore came out tops in Asia and fifth on the list of 14 places for expatriates to raise children.
- The Straits Times, B7
Indian meet draws 700
An annual Global Indian Diaspora Conference yesterday drew some 700 delegates from 20 countries. There are now 200,000 Indian expatriates in Singapore - one of the largest communities here. The two countries signed a Comprehensive Economic Cooperation Agreement in 2005. Since then, bilateral trade has boomed, hitting $24 billion last year. Singapore is now India's second largest investor. The diaspora conference is an opportunity for overseas Indians - some 30 million in all - to network and find ways to cooperate. This year's meeting was jointly organised by the Singapore Indian Chamber of Commerce and Industry, India's Ministry of Overseas Indian Affairs and the Confederation of Indian Industry.
- The Straits Times, B2
Singapore well placed as India's gateway to East Asia
Singapore’s strategic location and connectivity to key regional markets such as China and Vietnam makes it a gateway for India as well as a valuable partner. Singapore is well placed within the region and can be India's springboard to East Asia and beyond, said Senior Minister Goh Chok Tong. One of the earliest significant economic projects between India and a foreign country post-economic liberalisation was the Singapore-built Bangalore IT park.
- The Business Times, P17
Free weekly for Indians hits right note
TABLA!, the new English-language weekly aimed at the Indian community, drummed up mostly positive reviews with its maiden issue yesterday. Indian expatriates felt the paper was a good source of homeland news, while some Singapore and permanent resident Indians enjoyed the showbiz news. The paper is distributed free every Friday, but readers who want it delivered to their doorstep pay $28 a year. About 40,000 copies of the paper, published by the Tamil Murasu daily, were distributed yesterday at more than 100 locations, including banks and malls. The online version of the newspaper, which will be uploaded at noon on Fridays, can be found at www.tabla.com.sg.
- The Straits Times, B8
HDB offers 683 new flats
The Housing Board (HDB) yesterday launched 683 flats in Punggol, Sengkang, Jurong West and other estates in its half-yearly sale of units which were not taken up in previous launches. By 5pm, its website showed 2,626 applications for the flats, which range from three-room premium to executive units. The biggest share of 288 flats is in Sengkang, while 153 are in Punggol, 77 are in Jurong West and the remainder are in various estates. This year, the HDB also plans to launch another 8,400 units under the build-to-order scheme. Prices for units launched yesterday range from $160,000 for a four-room flat in Woodlands, to $565,000 for a five-room flat in Bukit Merah.
- The Straits Times, B6
S'pore slips into recession, risks skewed on downside
Early estimates produced by the Ministry of Trade and Industry (MTI) show a broad-based sharp slowdown, with the economy contracting not only sequentially, but in year-on-year terms too. MTI expects the economy to grow around 3 per cent in 2008, down from its August forecast of 4-5 per cent. Based on July and August data, GDP fell 6.3 per cent in Q3 from Q2 in adjusted, annualised terms. Coming after a 5.7 per cent decline in the preceding quarter, this spells a technical recession. GDP has also fallen from a year ago in Q3, by 0.5 per cent. There have been months of sluggish manufacturing output due to pharmaceutical peculiarities. The precision engineering and chemicals clusters have also slowed. MAS sees services industries such as the transport-hub and tourism being hit by the global downturn. Market economists had pared their forecasts of 2008 GDP growth and some now cite the risks of the growth falling below 3 per cent. MAS sees Singapore's headline inflation rate falling to 2.5-3.5 per cent in 2009, from 6-7 per cent this year.
- The Business Times, P3
(also see The Straits Times, A1, “Economy slips into technical recession”)
STI falls below 2,000 as global stocks dive
Global stock markets dissolved into chaos yesterday, following on another precipitous late sell-off on Wall Street. For the first time in almost five years, the Straits Times Index (STI) fell below 2,000 points. In Asia, Singapore and Hong Kong fell about 7 per cent each, while Tokyo plunged 9.6 per cent. Jakarta remained closed for a third day. European markets were in equally dire straits. London, Paris and Frankfurt fell 10 per cent each. Crude oil prices sank US$6 to a 12-month low of US$80.59 a barrel, while copper and nickel fell 9 per cent each. The three-month US dollar London Interbank Offered Rate (Libor) gained 0.07 percentage point to 4.82 per cent.
- The Straits Times, A1
(also see The Business Times, P5, “Europe, Asia shares sharply down”)
Prepare for a tough ride: PM Lee
Prime Minister Lee Hsien Loong told Singaporeans to prepare for a rough ride at least over the next year, and quite possibly longer. While Asian banks have been spared the woes of their US and European peers, stock markets everywhere have been battered in the fallout. Singapore shares tumbled 7 per cent yesterday. Senior Minister Goh Chok Tong said that the US is one of the biggest exports markets for Asia and Asia and Singapore will be impacted. PM Lee said that the problems facing financial institutions in the US and Europe are complex and grave, and will not be solved within a few months. But the momentum from projects Singapore has secured will help see it through the financial storm, he said.
- The Business Times, P2
MAS shifts monetary policy to neutral
The Monetary Authority of Singapore (MAS) shifted to a neutral exchange rate policy stance yesterday for the first time since April 2004. The neutral policy stance means the MAS will be targeting zero per cent appreciation instead of modest and gradual appreciation of the currency. This means that although the dollar may rise or fall against other currencies, its value will remain roughly stable in relation to a trade-weighted average of a group of currencies. The move will help to boost the competitiveness of Singapore's exports by making them cheaper overseas, or at least stop them from getting more expensive.
- The Straits Times, A4
(also see The Business Times, P6, “MAS moves to neutral; US$ may head higher”)face
Confidence will come back to markets, says DBS CEO
Confidence will return to financial markets and the current crisis is likely to benefit Asia in the long run, DBS said. But DBS Group chief executive Richard Stanley admitted that he has no idea how long it will take for markets to calm down. He added that the fundamentals are good, especially here in Asia and the banking sector in Singapore is very strong. The crisis will accelerate that process of shifting economic power and wealth to Asia.
- The Business Times, P17
Battered commodities, cheaper produce?
Global commodities have taken a beating as investment funds flee volatile markets and slowing economic growth worldwide dampens the demand for raw materials. The Reuters-Jefferies Commodity Research Bureau Index, which tracks a basket of 19 commodities, has fallen more than 34 per cent from its peak in July. Commodities across the board - not just food, but also metals such as platinum and copper - have also fallen, the exception being gold. Singapore Food Manufacturers' Association said palm oil prices had dropped from the $1,000 per tonne level to about $500 to $600.
- The Straits Times, A14
Bet on S-Reits in uncertain times
Singapore-listed real estate investment trusts, or S-Reits, are back in favour with analysts. S-Reits are being hailed as a source of stable, visible and recurrent income in uncertain times - and seem to be better bets than developer stocks. Reits here have been affected by tightening credit markets and higher interest rates, which have resulted in higher borrowing costs. But JPMorgan analysts say the Reit model is not broken. Analysts also feel S-Reits look attractive given their current yields and the steep discounts to book they are trading at.
- The Business Times, P36
To school, to school... if only it were in Singapore.
Across Myanmar, especially in Yangon and Mandalay, middle class parents are working and saving to send their children to a better education and future in Singapore. Those with some savings or assets are scrambling to trade them in, so they can enrol their young ones in expensive international schools and tuition centres offering the Singapore curriculum. Many are professionals: engineers and architects, or merchants running small businesses. They tend to be graduates of local universities who have lost faith in Myanmar's education system. To parents with the means to send their children abroad, Singapore has emerged as the No. 1 study destination. No official figures are available on how many Myanmar students head to Singapore every year, but rough estimates are around 1,000 a year. About half enrol in secondary schools, polytechnics and universities. Currently, there are about 7,000 Myanmar youth enrolled in public and private schools in Singapore. Singapore Tourism Board reports that Singapore's private schools hold at least one to two seminars or information sessions every week in Myanmar.
- The Straits Times, D2
South Korea scrambles to defend its markets
South Korea scrambled to prop up its tumbling markets with the finance minister set to plead with US bankers to keep credit lines open for local banks. It also called on East Asian countries to expand a proposed US$80 billion currency swap deal to shelter their economies from the financial storm. The won slumped as much as 5 per cent in early trading and the main stock market index dropped 9 per cent.
- The Business Times, P6
India cuts reserve ratio, cancels bond auction
India’s central bank slashed its cash reserve requirement yesterday to free up some US$12 billion in funds and ease a cash squeeze that drove overnight rates to a 19-month high and forced the government to cancel a bond auction. The Reserve Bank of India (RBI) cut the reserve ratio by 1.5 percentage points to 7.5 per cent, increasing the scope of the 50 basis point easing announced earlier this week.
- The Business Times, P20
Concourse Skyline
- 99-year leasehold from 13 March 2008
- 360 units
- 40 storeys
- Linked to the proposed Nicoll Highway MRT Station via a covered walkway
- 300 Beach Road
- Expected TOP: 31 December 2013
- Developer: Hong Fok Land Ltd
- Marketing agents: CBRE, DTZ
- The Straits Times, A6, advertisement
City View at Boon Keng
- 99-year leasehold upon TOP
- New showflat
- Sales subject to HDB eligibility conditions
- Public housing development with 714 units under HDB “Design, Build and Sell” scheme
- Built in kitchen, wardrobes, air-conditioning system
- Eligible applicants can enjoy perks like CPF housing grants, no resale levy for 2nd time homebuyers, deferred payment scheme
- Available units: 4-BR ($532,000-$571,900), 5-BR ($539,200-$671,000)
- Option fee of 5% of purchase price payable by cash/cheque upon booking
- Expected TOP: 5 June 2011
- Developer: Hoi Hup Sunway Development
- Marketing agent: HSR
- The Straits Times, A20, advertisement
Livia
- “With land costing easily between $250 & $350psf coupled with high construction costs, developers’ break-event cost is at least $700psf. Livia’s average price of $650psf is definitely a steal.” – Jack Chua, ERA President & Peter Ow, Knight Frank Executive Director.
- 99-years leasehold condo (from 7 Jan 2008)
- Located just 8 minutes from Pasir Ris MRT
- Action Zone: ‘Xtreme Swing’, ‘Rocky Climb’, basketball half-court
- Located just off Pasir Ris Drive 1
- Surrounded by prestigious schools such as Singapore’s forth upcoming university at Upper Changi Road East and upcoming United World College
- 3-, 4-BR apartments and penthouses
- Average: $670 psf, from $628 psf ($797,000)
- Expected TOP: 31 Dec 2011
- Developer: Hong Realty
- Marketing agents: ERA, Knight Frank
- The Straits Times, B3 - advertisement
Kovan Residences
- 99-years w.e.f. 31 Dec 2007
- Near Kovan MRT station. 13 minutes to the city
- 2, 3, 4-bedroom apartments, single-level or duplex penthouses with private pools or Jacuzzis
- $800-950 psf
- Expected TOP: 30 April 2010
- Joint developers: Centurion and Lian Beng Group
- Marketing agent: DTZ
-The Straits Times, B4 - advertisement
Oasis Garden
- Freehold
- Deferred payment available
- Easy access to Marina Bay via new KPE
- Minutes walk from Tai Seng/Bartley MRT station (Circle Line partial opening mid 2009)
- Balinese landscape garden
- Expected TOP: 15 May 2012
- Showflat at 135 Joo Seng Road #07-03
- Developer: Kheng Leong Co
- Marketing agent: DTZ
-The Straits Times, B6 - advertisement