DAILY MARKET UPDATES 5th November 2008

Fewer cluster homes may be built From 3 Feb 09, developers will be permitted to build fewer but larger strata landed units than under current laws. The cap will be based on a minimum plot size per unit similar to that imposed for conventional landed homes. URA is reinstating an old rule early 09, expected to leave developers less inclined to build the homes. The main reason is that developers tended to cram as many homes onto a plot as possible, leading to congestion and deterioration of the environment. Strata landed homes cost 10 to 20 per cent less than conventional landed homes but the gap will close under the new guidelines.
- The Straits Times, B28
KL unveils $3b plan to jumpstart economy Malaysia's government announced a RM7 billion (S$2.93 billion) stimulus package yesterday. The 2009 growth forecast had dropped to 3.5 per cent from 5.4 per cent, while the projected budget deficit was 4.8 per cent of GDP, up from 3.6 per cent. The RM7 billion reaped from savings on reduced oil subsidies would be spent on 'high-impact' projects like low-cost housing, public transport, public facilities, and housing for the police force and military. As part of a move to boost foreign investment, foreigners who want to buy commercial real estate worth RM500,000 or more would no longer need the approval of the Foreign Investment Committee.
- The Straits Times, A1
(Also see, The Business Times, P1, “M’sia pads up Budget as chill wind blows”)
New Citi overdraft ties global mortgagesThe new global home financing solution allows high net worth clients to consolidate mortgage financing on residential properties here and abroad into one overdraft that they can use at their convenience. Some 40 per cent of Citi Singapore's affluent client base would be interested in properties overseas. The overdraft facility can be used for a range of investments including stocks, bonds and properties. For a start, the product will apply to properties in six markets - Singapore, Hong Kong, Malaysia, Australia, Canada and the UK. The line of credit is offered in a range of currencies, comprising the Singapore dollar, US dollar, Australian dollar, Hong Kong dollar, euro, Japanese yen, sterling and Swiss franc.- The Business Times, P15(Also see, The Straits Times, B27, “Citi launches special home loan for rich”)
S'pore could draw more green energy projects
Singapore could attract more mega investments to develop new alternative and renewable energy ideas and technologies for the world. Finland's Neste Oil, which is starting up a S$1.2 billion second-generation biodiesel plant here in 2011 - the largest in the world - is eyeing that option. Vesta Technology R&D, opened its S$500 million Asian headquarters in Singapore on Monday. The Singapore government has allocated funding to facilitate this, including developing a Cleantech Park at Jalan Bahar 'which will allow test-bedding of products and solutions for the Tropics, including ideas that are replicable for global markets.
- The Business Times, P14
(Also see, The Straits Times, B7, “Business park just for green companies soon”)
Indian developers woo buyers with free cars, gold, holidays
Indian builders are offering free cars and gold to kickstart demand. The gifts range from Toyota four-wheel drives to gold coins and foreign vacations. India's housing market was worth US$12 billion in 2005 and had been forecast to grow to US$90 billion by 2015. The crisis has deepened this year by 20 per cent. Hindustan Construction Company, one of India's largest builders, has put on hold three planned townships in the hope interest rates will dip again, bringing down mortgage rates.
- The Business Times, P21
Long-term planning key for transport systemTransport solutions for Singapore have to be economically, socially and environmentally sustainable and long-term planning is key. The other three principles are that a world-class transport system needs to be founded on sound, market-oriented economic solutions; constant innovation in anticipation of and in response to changing solutions; and the need to engage and consult all the people involved. As Singapore has limited land space - 12 per cent is allocated for roads compared with 15 per cent for housing - the increase in travel demand must be met largely by public transport and the system has to cater to the diverse needs of the population.- The Business Times, P1(also see The Business Times, P1, “Transport key to cities' growth: minister”)
Taiwan and China ink four deals
Taiwan and China yesterday inked four pacts, including an agreement to launch daily passenger flights and shorten flight routes. Both sides also gave the green light for direct postal, as well as air and sea cargo services and agreed to notify each other promptly of food safety issues. The increased links are expected to boost the flow of people and goods between the two sides and could bring estimated savings of at least NT$5.5 billion (S$245 million) a year for businesses and travellers.
- The Straits Times, A12
Poly, ITE lecturers may get less leave
Lecturers at polytechnics and the Institute of Technical Education (ITE) will soon be given a choice: money or vacation. Poly lecturers can choose to take a 14-day cut in annual leave while getting a roughly 6 per cent pay raise and a bonus, or staying on the current scheme which gives them a 42-day vacation. It was designed in part to make teaching more appealing and to stem the flow of lecturers from polytechnics, which lose about 6 per cent of their teachers every year. To attract new staff, starting salaries will also go up by 5 or 6 per cent.
- The Straits Times, B10
Autodesk opens R&D centre at Fusionopolis
Autodesk announced the opening of its 5,000 square metre R&D centre in Fusionopolis and declared it will acquire more office space when the next phase is ready by 2010. By then, Autodesk's Singapore operations will be consolidated in just Fusionpolis. Autodesk's Ngee Ann City office will remain as its sales office and serve as its Asia-Pacific and South-east Asia headquarters. The company employs around 400 workers locally and 7,500 worldwide, of which 2,500 are R&D staff.
- The Business Times, P14
(also see The Straits Times, B26, “Autodesk opens new R&D hub”)
S'pore firms eye Taiwan tourists amid slump
STB took the chance at Taipei’s four-day International Travel Fair - Asia's largest travel exhibition which ended recently - to promote the 'Uniquely Singapore' experience. It tied up with
five local agencies to push packages for travellers shopping for bargain deals. STB's selling points for November and December are 'A Sweet Christmas in Singapore', 'ZoukOut 2008' and 'Marina Bay Singapore Countdown 2009'. In addition, STB, Singapore Airlines was also trying to reach out to Taiwanese travellers with its A380 packages at the travel exhibition. Statistics from Cross-Strait Tourism Association show that the number of China's outbound tourists grew 18.6 per cent to 40.9 million last year, and would increase to 50 million in 2010. Total figure could reach 100 million by 2020, making it the world's fourth-largest outbound tourist country.
- The Business Times, P21
Dubai Mall opens but shoppers may not open purses
Dubai Mall is open for business but the success of the US$20 billion (S$30 billion) project is far from assured. The mall, opened yesterday and is one of the world's largest with 1,200 shops, four times as many as London's new Westfield centre but it will be hard for the owner to meet its target of 30 million visitors in the first year. Tourism has been a major factor in Dubai's economic growth and there are plans to more than double the number of tourists to 15 million by 2015.
- The Straits Times, A21