Top 11 Singapore’s Domestic Export destinations in 2011
1) Malaysia
2) PRC
3) HongKong
4) Indonesia
5)United States
6) Panama
7) Australia
8) Japan
9)Taiwan
10)South Korea
11) India
Top 10 Singapore’s Export (Domestic + Re-Export) destinations in 2011
1) Malaysia
2) Hong Kong
3)Indonesia
4)China
5)United States
6) Japan
7) Australia
8) South Korea
9) Taiwan
10) India
Top 10 Singapore’s Import Sources in 2011
1) Malaysia
2) UnitedStates
3)PRC
4) Japan
5) Taiwan
6) SouthKorea
7) Indonesia
8) Saudi Arabia
9) India
10)Thailand
Singapore’s total Trade with India for top 10 items (in thousands S$)
July 2011
July 2012
Imports from India
Exports to India
Total Trade
Imports from India
Exports to India
Total Trade
1,051,838
751,579
1,803,417
737,140
415,529
1,152,669
Principal five global import items of Singapore in July 2012
OTHER PETROLEUM OILS & OILS FROM BITUMINOUS MINERALS NOT CRUDE & PREPARATIONS NES CONTAINING BY WEIGHT 70% OR MORE OF PETROLEUM OILS OR OF OILS OBTAINED FROM BITUMINOUS MINERALS EXCL THOSE CONTAINING BIODIESEL & WASTE OILS (HS 271019)
OTHER ELECTRONIC INTEGRATED CIRCUITS (HS 854239)
PETROLEUM OILS & OILS FROM BITUMINOUS MINERALS CRUDE (HS 270900)
LIGHT OILS & PREPARATIONS CONTAINING BY WEIGHT 70 % OR MORE OF PETROLEUM OILS OR OILS FROM BITUMINOUS MINERALS (HS 271012)
PROCESSORS & CONTROLLERS CONVERTERS LOGIC CIRCUITS AMPLIFIERS CLOCK TIMING CIRCUITS OR OTHER CIRCUITS (HS 854231)
Principal five global domestic export Items of Singapore in July 2012
OTHER PETROLEUM OILS & OILS FROM BITUMINOUS MINERALS NOT CRUDE & PREPARATIONS NES CONTAINING BY WEIGHT 70% OR MORE OF PETROLEUM OILS OR OF OILS OBTAINED FROM BITUMINOUS MINERALS EXCL THOSE CONTAINING BIODIESEL & WASTE OILS (HS 271019)
SHIPS & AIRCRAFT BUNKERS & STORES LOADED ON BOARD FOR OWN CONSUMPTION (HS 989300)
LIGHT OILS & PREPARATIONS CONTAINING BY WEIGHT 70 % OR MORE OF PETROLEUM OILS OR OILS FROM BITUMINOUS MINERALS (HS 271012)
OTHER ELECTRONIC INTEGRATED CIRCUITS (HS 854239)
PROCESSORS & CONTROLLERS CONVERTERS LOGIC CIRCUITS AMPLIFIERS CLOCK TIMING CIRCUITS OR OTHER CIRCUITS (HS 854231)
Principal five domestic export items of Singapore to India in July 2012
LIGHT OILS & PREPARATIONS CONTAINING BY WEIGHT 70 % OR MORE OF PETROLEUM OILS OR OILS FROM BITUMINOUS MINERALS (HS 271012)
STYRENE (HS 290250)
PARTS & ACCESSORIES OF MACHINES OF 8471 (HS 847330)
OTHER PETROLEUM OILS & OILS FROM BITUMINOUS MINERALS NOT CRUDE & PREPARATIONS NES CONTAINING BY WEIGHT 70% OR MORE OF PETROLEUM OILS OR OF OILS OBTAINED FROM BITUMINOUS MINERALS EXCL THOSE CONTAINING BIODIESEL & WASTE OILS (HS 271019)
UNUSED POSTAGE REVENUE OR SIMILAR STAMPS OF CURRENT OR NEW ISSUE WITH RECOGNISED FACE VALUE STAMP IMPRESSED PAPER BANKNOTES CHEQUE FORMS STOCK SHARE OR BOND CERTIFICATES & SIMILAR DOCUMENTS OF TITLE (HS 490700)
Principal five import Items of Singapore from India in July 2012
LIGHT OILS & PREPARATIONS CONTAINING BY WEIGHT 70 % OR MORE OF PETROLEUM OILS OR OILS FROM BITUMINOUS MINERALS (HS 271012)
OTHER PETROLEUM OILS & OILS FROM BITUMINOUS MINERALS NOT CRUDE & PREPARATIONS NES CONTAINING BY WEIGHT 70% OR MORE OF PETROLEUM OILS OR OF OILS OBTAINED FROM BITUMINOUS MINERALS EXCL THOSE CONTAINING BIODIESEL & WASTE OILS (HS 271019)
OTHER ARTICLES OF JEWELLERY OF OTHER PRECIOUS METAL (HS 711319)
OTHER MOTOR VEHICLES FOR TRANSPORTING GOODS WITH COMPRESSION IGNITION INTERNAL COMBUSTION PISTON ENGINE OF GVW OVER 20T (HS 870423)
WORKED NON-INDUSTRIAL DIAMONDS NOT MOUNTED OR SET (HS 710239)
Monthly trade figures between India and Singapore (in thousands S$)
Monthly figures for Singapore’s Global Trade (in thousands S$)
Trade
July 2010
July 2011
July 2012
Total Trade#
79,003,562
78,671,380
80,986,038
Sgpr’s Imports
38,161,691
36,548,922
38,756,675
Sgpr’s Exports#
40,841,871
42,122,457
42,229,363
Sgpr’s Domestic Exports
20,534,139
23,307,440
23,154,843
Sgpr’s Re-Exports
20,307,732
18,815,017
19,074,520
Cumulative figures for Singapore’s Global Trade (in thousands S$)
2008
2009
2010
2011
Jan-July2011
Jan-July 2012
Total global Trade
927,654,759
747,417,400
902,062,584
974,396,345
557,832,322
584,758,240
%change y-o-y
9.57%
-19.43%
20.69%
8.02%
8.06%
4.83%
Singapore's Imports
450,892,588
356,299,229
423,221,839
459,655,129
262,852,957
281,908,010
%change y-o-y
13.87%
-20.98%
18.78%
8.61%
7.14%
7.25%
Singapore's Exports
476,762,172
391,118,171
478,840,745
514,741,216
294,979,365
302,850,229
%change y-o-y
5.80%
-17.96%
22.43%
7.50%
8.90%
2.67%
Sgpr’s Domestic Exports
247,617,959
200,003,141
248,609,828
281,349,653
159,839,981
170,634,642
%change y-o-y
5.41%
-19.23%
24.30% 22.57%
13.17%
14.54%
6.75%
Singapore’s Re-Exports
229,144,213
191,115,030
230,230,917
233,391,563
135,139,384
132,215,588
%change y-o-y
6.22%
-16.60%
20.47%
1.37%
2.91%
-2.16%
Cumulative figures for India and Singapore Bilateral Trade (In thousands S$)
2008
2009
2010
2011
Jan-July 2011
Jan-July2012
Total Bilateral Trade
28,756,963
21,585,714
30,667,496
35,424,915
21,845,570
18,491,415
%change y-o-y
20.52%
-24.94%
42.07%
15.51%
25.12%
-15.35% %
Singapore's Imports
11,922,381
8,156,459
12,566,133
17,770,934
10,628,943
10,027,652
%change y-o-y
35.26%
-31.59%
54.06 %
41.42%
48.91% %$%
-5.66% %
Singapore's Exports
16,834,582
13,429,255
18,101,363
17,653,981
11,216,627
8,463,762
%change y-o-y
11.89%
-20.23%
34.79%
-2.47%
8.67%
-24.54%
Sgpr’s Domestic Exports
7,515,094
5,677,674
7,693,906
8,444,911
5,299,344
3,914,526
%change y-o-y
21.38%
-24.45%
35.51%
9.76%
14.51% %
-26.13%
Singapore’s Re-exports
9,319,488
7,751,581
10,407,457
9,209,070
5,917,283
4,549,236
%change y-o-y
5.25%
-16.82%
34.26%
-11.51%
3.93%
-23.12%
Singapore’s Total Global Trade in July 2012 Singapore’s Total global trade in July 2012 increased by 2.9 % on a year-on-year basis, after the 2.7% increase in the previous month. Total exports increased by 0.3% Total imports increased by 6.0% Non-oil domestic exports (NODX) increased by 5.8%. Electronic NODX Increased by 2.0% Non-electronic NODX expanded by 7.9% Oil domestic exports contracted by -11.0% Non-Oil Re-Exports (NORX) increased by 7.1%. Electronic NORX increased by -3.9% Non-electronic NORX increased by 10%
PART II - INTERNAL
Economy:
GDP shrinks 1.1% in Q2: advance estimates
The Republic's economy performed worse than expected in both the second and first quarters, igniting talk of a looming technical recession in the third quarter. Advance estimates from the Ministry of Trade and Industry (MTI) showed GDP shrinking 1.1 per cent in Q2 from the previous quarter on a seasonally adjusted annualized basis, as manufacturing faltered. This was a sharp reversal from Q1's 9.4 per cent expansion, which MTI lowered from the previously announced 10 per cent. Several economists have trimmed their full-year growth forecasts, and some have raised the odds of a looser monetary policy in October.” The negative Q2 GDP print underscores the downside risks to the growth outlook, and could spur more worries of a technical recession," said Nomura economist Euben Paracuelles.Minister for Trade and Industry Lim Hng Kiang maintained confidence in Singapore's economy growing 1-3 per cent this year, in line with the official forecast, if no major trouble develops in Europe.MTI figures showed that the economy could have expanded 1.9 per cent year on year. Q1's reading, at 1.4 per cent, was lower than the previously announced 1.6 per cent. Quarter on quarter, Singapore's economic contraction in Q2 was largely due to a 6 per cent sequential drop in the manufacturing sector. A decline in biomedical manufacturing output more than offset gains in the transport engineering cluster, MTI said. Quarter on quarter, Singapore's economic contraction in Q2 was largely due to a 6 per cent sequential drop in the manufacturing sector. A decline in biomedical manufacturing output more than offset gains in the transport engineering cluster, MTI said The construction sector grew by just 0.3 per cent, supported by ongoing public civil engineering works. The services sector expanded 0.4 per cent. Tourism-related activities grew at a moderated pace, while wholesale and retail trade and the finance and insurance sectors contracted. At least four economists have their full-year growth projections for Singapore. Bank of America Merrill Lynch economist Chua Hak Bin expects GDP to gain 1.9 per cent instead of 2.5 per cent. Headline inflation could be below 4 per cent by the central bank's policy meeting in October and "MAS may ease back to a 'modest and gradual' S$NEER (Singapore dollar nominal effective exchange rate) appreciation at the October policy meeting from the current 'slightly steeper' stance”. Despite the uninspiring economic news, a number of Asian currencies climbed against the US dollar
SGX derivatives, commodities, clearing volumes up in June
Derivatives, commodities and clearing activities grew in June from a year earlier while securities turnover was lower, the Singapore Exchange (SGX) said Securities turnover fell 25 per cent year-on-year and 18 per cent month-on-month to S$21.2 billion, with securities daily average value down 21 per cent year-on-year and 14 per cent month-on-month to S$1.0 billion.June ETF turnover was 56 per cent lower year-on-year at S$350 million while GlobalQuote activity was down 17 per cent to S$97 million.Derivatives volume was up 7 per cent year-on-year at 6.6 million contracts in June. Daily average volume grew 12 per cent to 314,055 contracts.Bond listings totalled S$11 billion in June, up 47 per cent from a year earlier.SICOM rubber futures volume grew 38 per cent year-on-year and 20 per cent month-on-month in June to 28,859 contracts.New OTC interest rate swap transactions cleared was S$8.1 billion notional in June, up 70 per cent year-on-year.
Singapore retail investors slightly more upbeat on six-month outlook
Retail investors in Singapore have turned a bit optimistic in their investment outlook for the next half- year compared with six months ago, but remain cautious, according to a survey by JP Morgan Asset Management. The survey showed the JP Morgan Investor Confidence Index (ICI) rising from January's 86 points - the lowest confidence level registered since the semi-annual poll was first conducted at the end of 2010 - to a moderate 101 points in the latest survey conducted from May 29 to June 7. A score of 100 signifies a neutral confidence level. The ICI, which is based on survey questions on the domestic and external economy, found that Singapore retail investors are most confident about domestic factors such as the local economy and investment market environment, as well as the Straits Times Index (STI). Confidence in the Singapore economy experienced the greatest boost, rising 24 per cent compared to six months ago. Such confidence translates into a rise in planned investment, as 41 per cent of investors plan to increase their investment in the next six months, up from 32 per cent six months ago. These investments are likely to be made in Singapore, Asian regional and real estate categories, in asset allocations of deposits, stocks and related derivatives as well as insurance products. Nevertheless, 80 per cent of investors remain cautious about risks and are looking for capital preservation in their investments. Such caution stems largely from external events such as the European debt crisis and the weakness in global markets. However, domestic inflation was also cited as a key factor, with 86 per cent of respondents expecting inflation to remain at or increase from its current level of 5.4 per cent, due to rising housing costs and stabilizing at 5.5 per cent over the next six months. Such expectations are higher than the Monetary Authority of Singapore's (MAS) forecast of CPI-All Items inflation at 3.5-4.5 per cent. Nonetheless, considering that a lot of bad news has already been priced in for equity returns, less risk- averse investors could consider slowly moving back into the market. The report added that sentiment in the third quarter may improve slightly due to signs of stronger global growth, driven by improvements in China and the United States..
June PMI holds steady, but electronics slips
Singapore's manufacturing sector may have bucked the global trend of receding purchasing managers' indices (PMIs) for a second month in June, but economists say factory activity may come under pressure in the next few months.The barometer of industrial activity held steady last month with a reading of 50.4, the same as in May, keeping above the 50-point threshold separating growth from contraction.This better-than-expected expansion - thanks to growth in new orders, production output and inventory - came despite the US Institute for Supply Management's index falling to its lowest level in June since July 2009.The electronics sector's PMI fell from 50.8 in May to 50.4 in June, though the above-50 reading continued to indicate expansion.Most recent data from the Economic Development Board showed that May's industrial output rose 1.8 per cent from April after adjusting for seasonal factors, and rose 6.6 per cent year-on-year.
Consumer confidence lower in Q2: Nielsen
Consumer confidence here has fallen in the second quarter this year, amid growing fears of an economic recession, a Nielsen survey showed. The Nielsen Global Consumer Confidence Index for Singapore dropped two points to 94, following a short-lived uptick in Q1.A figure below 100 indicates pessimism, while a number above 100 indicates positive consumer sentiment. The drop means Singapore is now only the ninth most confident country in the Asia-Pacific region, trailing leaders Indonesia, India and the Philippines.” The survey of 500 respondents showed that recession fears have edged up, with 31 per cent of them believing that Singapore is currently in a recession, up four percentage points from Q1.Some 54 per cent of consumers were optimistic about their personal finances, but this was down two percentage points from Q1.Nearly half of them were downbeat about their job prospects. The sliding confidence in the country's economic outlook, together with inflationary concerns, have signaled a continuing conservatism in spending, Ms Koh noted. The survey found that 68 per cent of consumers will hold back on discretionary spending - a six-point surge in numbers from the first quarter. Stock investing and taking holidays were found to be the spending items most likely to be placed on the backburner. With restrained spending, consumers are increasingly looking to preserve and grow their wealth. About two-thirds of people here have indicated that they plan to put spare cash into savings, while a quarter of them plan to invest in stocks or mutual funds. Despite a brief recovery in Q1 this year, the latest consumer confidence reading follows a two-year declining trend that is expected to continue as recessionary jitters reverberate around the world. Last week, preliminary GDP estimates from the Ministry of Trade and Industry revealed that Singapore's Q2 growth contracted 1.1 per cent, raising the possibility of a technical recession in the third quarter. The region, however, remains the most optimistic in the world at 95 points, compared to the global average of 91 points.
Singapore Exchange toughens listing rules
Singapore Exchange Ltd is toughening rules for companies looking to list on its main market in the wake of a series of accounting scandals at small Chinese firms listed on the bourse.Recent scandals at companies such as KXD Digital Entertainment have dealt a blow to the reputation of SGX-listed companies, and the exchange said that it was tightening its regulations to make it more attractive for larger firms to go public in the city state.It also said it was planning to up the proportion of shares made available to retail investors in initial public offerings."I think retail investors will reap significant benefits in terms of having wider access to new IPOs. At the same time, they can be better assured that companies listed on SGX are of good standing and quality," said David Gerald, president of Securities Investment Association of Singapore.Under the new rules, to take affect on August 10, companies looking to list must have a market capitalisation of at least S$150 million (US$119.2 million), have made a profit in their last financial year and have an operating track record that stretches back at least three years.Firms with an operating track record that does not meet requirements must have a market capitalisation of at least S$300 million, while those with market capital below S$150 million should have made a pre-tax profit of at least S$30 million in the last financial year and have an operating record stretching back at least three years.China's KXD has applied to be wound up after announcing in January this year that it was being investigated by the Singapore police for offences under the Securities and Futures Act.China Sky Chemical Fibre Company is also being investigated by Singapore regulators and police and announced in April that its auditors had resigned. – REUTERS
Variations in STI
With rise on Wall Street, the Straits Times Index (STI) gained 11.75 points to 3,028.96 while over in Hong Kong, the Hang Seng firmed 1.6 per cent. Europe's mixed opening, however, capped the STI's rise.News reports attributed the push in the US market to better-than-expected earnings announced by Intel Corp as well as hopes that the US Federal Reserve might soon give the market what it wants in the shape of a third round of monetary injections. Whatever the case, turnover here was concentrated in low-priced issues and amounted to 1.7 billion units worth $1.4 billion excluding foreign currency issues. The broad market was relatively mixed, recording 198 rises versus 154 falls excluding warrants. The Straits Times Index (STI) fell 7.52 points to 2,990.92 in the face of mounting evidence that all is not well with the eurozone - ratings agency Moody's downgraded the outlook for Germany and the Netherlands while the 10-year Spanish bond traded at a yield of around 7.5 per cent.Turnover was 1.4 billion units worth $1.3 billion excluding foreign currency issues, the dollar value being boosted by the debut of private healthcare group IHH Healthcare and heightened activity in F&N, which is in the middle of a takeover tussle for Asia-Pacific Breweries.IHH was offered at around $1.11 and closed at $1.225 with 101 million traded for a total value done of $123 million, while F&N's shares rose 35 cents to $8.35 with $34 million shares changing hands, giving a value traded of $276 million.The total value of IHH and F&N's trades was $400 million, about 30 per cent of the dollar volume done in the whole market.
MAS narrows 2012 inflation forecast to 4.0-4.5%
The Monetary Authority of Singapore (MAS) is narrowing the forecast range for 2012 inflation to 4.0-4.5 per cent, but maintains its forecast for core inflation at 2.5-3.0 per cent. The previous forecast for 2012 Consumer Price Index - All Items inflation was 3.5-4.5 per cent.Ravi Menon, MAS managing director, said on Wednesday: "Bringing down inflation remains one of MAS' top priorities. The figure we watch most closely is core inflation, which excludes the cost of accommodation and private road transport."We were concerned when core inflation came in at 3.1 per cent in Q1 this year. This reflected high commodity prices and pass-through of strong wage growth in 2011. In Q2, core inflation moderated to 2.7 per cent. It is likely to ease further and approach 2 per cent by end of the year," he said.
MAS says growth on track at 1-3% this year
The Monetary Authority of Singapore (MAS) said that Singapore's gross domestic product (GDP) growth remains on track to grow at 1-3 per cent this year.Ravi Menon, managing director at MAS, said GDP growth averaged 4.2 per cent in the first half of this year, but the growth momentum is clearly slowing.He warned that MAS' forecast is based on three ssumptions: no recession in US, no significant escalation of the euro zone crisis, and no hard landing in China.If one or more of these assumptions do not pan out, Singapore's GDP growth could dip below one per cent this year.
MAS beefs up capital, reserves amid volatile markets
The Monetary Authority of Singapore (MAS) has increased its capital by $8 billion to $25 billion amid volatile financial markets.It also did not return profits to the government as it bolstered its reserves in light of the volatile market environment.MAS's issued and paid-up capital was increased to $25 billion during the financial year, it said in its latest annual report.With the changes in equity, MAS capital and reserves rose to $35.15 billion as at March 31, 2012, compared to $24.38 billion a year ago.For the year ended March 31, 2012, MAS made foreign investment gains of $12.1 billion, about the same as the previous financial year, but recorded an overall profit of $2.8 billion due to a strong exchange rate.It had posted a record net loss of $10.9 billion for the previous financial year, as the strong Singapore dollar more than offset investment gains of $12.3 billion in the period.MAS managing director Ravi Menon said the central bank is preparing for risks to economic and financial stability posed by escalation of the eurozone crisis.Among the risks will be stresses on financial markets and a squeeze on liquidity.Financial market stresses will be felt most keenly on capital flows, currency markets and interbank funding, he said, speaking at the annual report press conference."There could be larger and more volatile capital flows. We must be prepared for both excessive inflows as well as outflows."This could in turn have either upward pressures or downward pressures on the Singapore dollar," he said.Interbank funding could tighten further, he said."We are keeping a close watch on market liquidity conditions, especially in availability of US dollar funding," said Mr Menon.MAS also disclosed that it had provided a $20 billion facility to protect depositors.In February this year, it agreed to provide the Singapore Deposit Insurance Corporation a contingent liquidity facility of up to $20 billion, in the event of a bank failure and money being needed to return to depositors.The insurance scheme protects deposits of up to $50,000 with a bank."For the financial year ended 31 March 2012, there was no request and drawdown on the facility," it said.On the interest rate setting review by central banks around the world, MAS has told banks to review their processes on setting the benchmark interbank interest rates.
WTO all praise for S'pore's trade and economic policies
Singapore under went its latest Trade Policy Review (TPR) at the World Trade Organisation's (WTO) headquarters in Geneva.A multi-agency delegation from Singapore, led by Permanent Secretary for Trade and Industry Ow Foong Pheng, was in the Swiss city for the three-day review which began on 24Jul2012.The delegation comprised of officials from Mrs Ow's ministry, the Ministry of Finance, the Attorney-General's Chambers and the Economic Development Board.This is the sixth such review in Singapore's history, with the last one being conducted back in 2008. Singapore was praised by the World Trade Organization (WTO) and many of its members at the close of its sixth Trade Policy Review (TPR) in Geneva. A total of 32 WTO members spoke during the three-day review.The TPR exercise is conducted every four years and gives economies the chance to respond to questions raised by fellow WTO members regarding their trade and economic policies. The report prepared by the WTO Secretariat said that Singapore was hit hard by the global financial crisis. However, a counter-cyclical fiscal stimulus (S$20.5 billion in 2009), monetary easing, strong economic fundamentals, and labour market flexibility resulted in a swift recovery. Singapore has responded to new challenges by launching a productivity drive to boost GDP growth and facilitate its transformation into a high-tech economy, the WTO report added. New Zealand's ambassador to the WTO, John Adank, said that there was much interest from WTO members to learn from Singapore's experience in managing trade and economic issues, particularly the manner in which Singapore dealt with the 2008-2009 global financial crisis. Members also appreciated Singapore's strong commitment to the multilateral trading system."Members praised Singapore for remaining one of the most open and liberal economies in the world, and the easiest country in which to do business," said Colombia Ambassador Eduardo Munoz, who chaired the TPR session.Singapore has responded to new challenges by launching a productivity drive to boost GDP growth and facilitate its transformation into a high-tech economy, the WTO report added.The WTO members who spoke during the discussion said that Singapore did not resort to protectionist measures during the crisis.They also praised Singapore's commitment to the multilateral trading system and its active participation in the regular work of the WTO.In her closing remarks, Singapore's permanent secretary for trade and industry Ow Foong Pheng stressed that Singapore would continue to restructure the economy towards higher value-added, knowledge and technology-intensive activities."Economic restructuring is not new to us. We have made the transition from low-cost manufacturing in the past to higher value-added, knowledge and technology-intensive activities in many of our key sectors," she said."We believe that innovation, productivity and skills upgrading are the means by which we can ensure sustainable and inclusive economic growth for Singapore," she added.
GIC maintains real rate of return over 20 years at 3.9%
The Government of Singapore Investment Corporation (GIC) announced a 20-year annualized real rate of return of 3.9 per cent for its financial year ended March 2012, no change from its previous financial year. This means that GIC has not only protected the government's portfolio against global inflation, it has even enhanced it with real returns averaging 3.9 per cent per year, the investment manager of Singapore's foreign reserves said. The five-year annualized return in USD terms was 3.4 per cent net of fees with a volatility of 12.9 per cent. The 10-year annualized return was 7.6 per cent with a volatility of 10.4 per cent. The returns and volatility statistics are compared against two composite global portfolios, GIC said.GIC's group chief investment Officer Ng Kok Song said: "Investment returns are likely to be low until the global economy returns to balanced and sustainable growth."Debt-deleveraging in the developed economies will continue to hinder their growth. The emerging economies led by China will have higher and more robust growth but are not yet of a sufficient scale to offset anaemic growth in the developed economies," he dded.GIC also stressed that while it continues to publish its five-year and 10-year nominal rates of return to provide a sense of the ongoing medium-term investment performance, it maintains its sights on the long term.
SGX's Q4 profits fall, sees S$30-35m in FY13 capex
Singapore Exchange (SGX) announced that its net profit for the fiscal fourth quarter ended June 30, 2012 fell to S$61.1 million from S$79.5 million a year ago. Full year net profit was at S$291.8 million,, down from S$294.9 million. Excluding one-off items, its underlying profit for the fourth quarter was S$73.2 million compared to S$78.6 million. For the full year, underlying profit was S$303.9 million versus S$311.8 million. Operating revenue of the stock exchange slipped to S$157.8 million in the final quarter from S$160.6 million a year earlier. As a result, full year revenue fellto S$647.9 million from S$660.7 million previously, on a 14 per cent shrinkage in its securities and issuer services revenue to S$305.7 million. SGX said that the ongoing economic uncertainties across the regions will continue to affect its markets, and will focus on growing its customer base and product offerings. It predicts a capital expenditure of $30-35 million for its next financial year and will strive to declare a base dividend of 4 cents per share every quarter. The group has proposed a final dividend of 15.0 cents, bringing dividends for the full year to 27.0 cents.
Infrastructure
Massive move to boost S'pore infrastructure
The government plans to ramp up infrastructure in Singapore over the next decade to meet the needs of population growth here in recent years, even though the inflow of immigrants has fallen since 2009.Population growth in recent years has outpaced infrastructure capacity, a paper released by the government yesterday noted. Published by the National Population and Talent Division (NPTD), the paper notes the need to build infrastructure in a timely manner. A major effort over the next 5-10 years will seek to meet the demand for housing, transport and public services.The rail network will be doubled in Singapore, from 138km in 2008 to 280km in the next 10 years. One new segment of the MRT network will open every year to from now to 2017. This will ensure that more than 400,000 housing units on the island will be within 400 metres of a rapid transit system station, more than double that today.More than 800 new buses will be rolled out over the next five years, which will raise the current bus capacity by 20 per cent. Some $4.7 billion has been allocated in fiscal year 2012 to enhance the public transport infrastructure in Singapore. In all, the government has committed to spend about $60 billion to double the Singapore MRT network from what it was in 2008, and to increase the capacity of existing rail lines, the expenditure overview stated.The HDB will add 25,000 new flats to the market in 2012, while the supply of executive condominiums and private housing sites has also been expanded. Efforts will be taken to improve the living environment in HDB estates, the paper said. A total budget of $2.5 billion has been allocated to the Ministry of National Development (MND) this fiscal year to achieve these goals
INFLATION
MAS narrows 2012 inflation forecast to 4.0-4.5%
With inflation not coming down it appears to have hit poorest households hardest in the first half of this year. Policymakers expect inflation to moderate in the second half of the year after June's rebound to 5.3 per cent, but high inflation makes any loosening of monetary policy dicey, even as slowing growth raises the need to. The government now expects inflation in 2012 to come in at the upper half of its 3.5 to 4.5 per cent forecast range. June's consumer price index (CPI) was unchanged from a month ago, but the latest year-on-year jump brings inflation for the first half of 2012 to 5.1 per cent. Inflation’s impact on households varies across different income groups, a separate report released by the Department of Statistics (DoS) yesterday shows. The Monetary Authority of Singapore (MAS) is narrowing the forecast range for 2012 inflation to 4.0-4.5 per cent, but maintains its forecast for core inflation at 2.5-3.0 per cent. The previous forecast for 2012 Consumer Price Index - All Items inflation was 3.5-4.5 per cent.Ravi Menon, MAS managing director, said: "Bringing down inflation remains one of MAS' top priorities. The figure we watch most closely is core inflation, which excludes the cost of accommodation and private road transport
S'pore's June CPI at 5.3%, FY2012 seen at upper half of 3.5-4.5% forecast
Singapore's Consumer Price Index (CPI) All Items inflation came in at 5.3 per cent in June, compared to 5 per cent in May and 5.2 per cent a year ago.In a joint statement, the Monetary Authority of Singapore and Ministry of Trade and Industry, said this primarily reflected higher accommodation cost, which contributed 2.2 per cent points to the index compared to 1.8 per cent points in May.Car prices rose strongly from a year ago. However, with petrol pump prices falling by 0.8 per cent, private road transport cost increased at a slower pace of 9.7 per cent year-on-year in June from 10.3 per cent in May. Accommodation and private road transport costs accounted for around two-thirds of CPI-All Items inflation in June.
Employment
Real wages may drop 2.7% in 2012: survey
Real wages in Singapore are expected to decrease 2.7 per cent in 2012, according to a survey released by the Singapore Human Resources Institute (SHRI).The basic wage increase in 2012 will average 4.1 per cent for the full year, similar to that for last year, while variable bonuses, excluding annual wage supplement (AWS) are expected to average 1.6 to 2.0 months this year, lower than the 2.2 months in 2011.The wage increase and lower bonus this year means a total wage increase of only 1.5 per cent.
Hiring outlook dims in Q3 as employers scale back
The shaky economy has forced employers here to scale back on recruitment this quarter, a survey showed. In its quarterly report released, global recruitment firm Hudson said 35 per cent of the 567 employers it polled intended to boost their headcount in Q3 - the lowest level in nearly three years. This is a significant drop from the 42 per cent in Q2 and 56 per cent a year earlier. Some 58 per cent of respondents said they will maintain their headcount in Q3, the report said. Employers are slightly more inclined to fire than hire this quarter - 7.4 per cent plan to downsize, up from 6.2 per cent in Q2.
Jobless rate down in Q2 from more jobs, less layoffs: MOM
The second quarter of 2012 saw employment grow by about 29,200 from 27,200 in the first quarter. The figures were released by the Ministry of Manpower (MOM) in its latest Employment Situation, Second Quarter 2012 report showed. Construction and manufacturing registered strong employment increases of 9,500 and 4,500 respectively, compared to increases of 8,700 and 2,000 in the previous quarter, the report said. Growth in services employment, however, eased to 15,500 from 15,800 in the previous quarter. Layoffs also declined for the second successive quarter, after rising in the fourth quarter of 2011, said the report. About 2,300 workers were made redundant in the second quarter of 2012, down from 2,600 workers in the preceding quarter and 3,250 in the fourth quarter of 2011.The majority, or 1,500, of the workers laid off during the quarter were from services. Manufacturing and construction displaced 600 and 200 workers respectively. The overall unemployment rate dipped 0.1 percentage point over the quarter to 2.0 per cent in June on a seasonally adjusted basis, erasing the increase in March, the report said. It added that the unemployment rate for residents, which includes citizens and permanent residents, declined by 0.2 percentage points to 2.8 per cent, while that for citizens fell by 0.3 percentage points to 2.9 per cent. According to MOM's figures, about 77,700 residents, including 68,800 Singapore citizens were unemployed in June 2012.
Trade & Investment
S'pore's June exports expand by 6.8
International Enterprise (IE) Singapore, a government agency which focuses on driving Singapore's external economy announced that the non-oil domestic exports (NODX) for June 2012 expanded by 6.8 per cent year-on-year, following the 3.2 per cent increase last month, due to both electronic and non-electronic NODX.On a global basis, the top three NODX contributors in June 2012 were Hong Kong (up 41 per cent), the European Union 27 (up 17 per cent) and Indonesia (up 20 per cent).Year-on-year, electronic NODX grew by 1.6 per cent in June 2012. The increase in electronic domestic exports was largely due to higher exports of ICs (up 6.8 per cent), personal computers (up 51 per cent) and disk drives (up 19 per cent).Non-electronic NODX expanded by 9.4 per cent in June 2012 compared to last year, due to higher exports of pharmaceuticals (up 24 per cent), specialized machinery (up 25 per cent) and printed matter (up 72 per cent).Year-on-year, oil domestic exports (ODX) on the other hand, contracted by 2.8 per cent in June 2012, compared to the preceding month's 22 per cent increase. The decline occurred mainly due to lower sales to Hong Kong, India and Liberia.
Surprise rise in S'pore exports masks underlying slump
Fuelled by pharmaceuticals' rebound, Singapore's non-oil domestic exports (NODX) defied the market's forecast of slower growth to jump 6.8 per cent year on year in June, up from 3.2 per cent in May. Sequentially too, June's NODX bounced back from a 2 per cent month on month contraction in May, growing 6.7 per cent to reach $16 billion on a seasonally-adjusted basis, International Enterprise Singapore said. The 24 per cent year-on-year surge in pharmaceutical exports, which rebounded from growth of just 0.3 per cent in May, helped offset a 7.8 per cent contraction in petrochemical exports. More critically, it masked a slowdown in Singapore's key electronics exports, a better indication of economic outlook. Electronic shipments grew 1.6 per cent in June from a year ago, weaker than May's 3.9 per cent. The markets which contributed most to June's NODX growth were Hong Kong (41 per cent), Indonesia (20 per cent) and EU27 (17 per cent), but NODX to China, Thailand and US fell year-on-year. Growth in exports to Europe was largely due to pharma shipments too, as electronic exports to the region shrank 20.4 per cent.
SATS Q1 revenue up 13.6%, profit falls 2.8%
SATS Ltd reported 2.8 per cent decrease in year on year earnings for the fiscal first quarter ended June 30, 2012.Net profit slipped to $41.3 million from a restated $42.5 million, despite a 13.6 per cent increase in revenue to $437.9 million a year ago, supported by the continued uptrend in flight and meal volumes in Singapore as well as higher volumes recorded by overseas subsidiaries.Group net profit from continuing operations attributable to owners of the company for the first quarter was 8.8 per cent lower year on year at $41.3 illion.Excluding the one-off write-back of $5.5 million arising from the TFK Corporation's revised retirement benefit plan in the first quarter of last year, underlying net profit from continuing operations was 3.8 per cent higher than a year ago.Consequently earnings per share was lower at 3.7 cents. A year ago, EPS was 3.8 cents.In the first quarter, the number of flights handled by SATS rose 7.2 per cent, while the unit services handled grew 8.5 per cent, underpinned by an increase in services provided to bigger aircraft compared to a year ago. Passengers handled for the quarter crossed the 10 million mark for the first time, growing by 9 per cent year-on-year.Gross and unit meals increased 9 per cent and 7.9 per cent respectively, reflecting the passenger traffic growth momentum at Singapore Changi Airport. Cargo throughput, however, fell 5.2 per cent due to continued soft airfreight demand.
Manufacturing:
June PMI holds steady, but electronics slips
Singapore's manufacturing sector may have bucked the global trend of receding purchasing managers' indices (PMIs) for a second month in June, but economists say factory activity may come under pressure in the next few months. The barometer of industrial activity held steady last month with a reading of 50.4, the same as in May, keeping above the 50-point threshold separating growth from contraction. This better-than-expected expansion - thanks to growth in new orders, production output and inventory - came despite the US Institute for Supply Management's index falling to its lowest level in June since July 2009.Indeed, global economic conditions continue to challenge Singapore's business operating environment, said Janice Ong, executive director of the Singapore Institute of Purchasing & Materials Management (SIPMM), which compiles the monthly index based on a survey of purchasing executives in more than 150 industrial companies.The electronics sector's PMI fell from 50.8 in May to 50.4 in June, though the above-50 reading continued to indicate expansion.Mr Seah noted that almost all the sub-indices which make up the electronics PMI now point to further weakness in electronics production going forward. Ms Ong added that new electronics orders from abroad have fallen, and that many companies have implemented cost-cutting measures and shelved hiring plans for the time being too.
Driving the economy forward
Singapore's electronic industry single-handedly contributed 6 per cent to the nation's gross domestic product (GDP) of $327 billion in 2011, and output continues to rise. According to the Economic Development Board (EDB), manufacturing output has grown at a compound annual rate of 5.4 per cent since 1991, going from about $30 billion to $90 billion in 20 years. And factories are running on overdrive, whirring for the global electronics giants which have come to roost here. Last year, IM Flash set up a US$3 billion plant in Singapore, and MediaTek expanded its research and development (R&D) and business operations here with a $120 million injection. In March, world number two compound semiconductor company, TriQuint, set up its international headquarters here. The US firm plans to manage 70 per cent of global operations out of the 4,000 sq feet premises in Singapore.Qualcomm and Applied Materials have joined the long list of firms which have R&D and high-end design facilities here. The electronics sector ranks high in investment, pulling in $7.4 billion last year in fixed asset investments, up from $4.9 billion in 2009.Terence Gan, EDB deputy director of electronics, pointed out that the nature of the electronics industry is such that companies tend to be polarized into very large corporations and research-based start-ups.The influx of foreign companies here, together with new projects and investments being pumped in continually, is fuelling the momentum for the electronics sector, since projects have a gestation period, and investments made now will be realized in the years to come, he explained. The semiconductor firms form a key pillar in the electronics industry. Singapore is home to nine of the world's top 10 fabless semiconductor firms, including Broadcom, Globalfoundries, Infineon and Micron, to name some. Mr. Seah noted that almost all the sub-indices which make up the electronics PMI now point to further weakness in electronics production going forward. "Unless new product launches are able to inject more impetus into global consumer demand, expect demand to turn increasingly more sluggish against the backdrop of existing fragile economic conditions," he said. Ms Ong added that new electronics orders from abroad have fallen and that many companies have implemented cost-cutting measures and shelved hiring plans for the time being too. The barometer of industrial activity held steady last month with a reading of 50.4, the same as in May, keeping above the 50-point threshold separating growth from contraction. The electronics sector's PMI fell from 50.8 in May to 50.4 in June, though the above-50 reading continued to indicate expansion. Most recent data from the Economic Development Board showed that May's industrial output rose 1.8 per cent from April after adjusting for seasonal factors and rose 6.6 per cent year-on-year.
S'pore's June industrial output beats forecast on pharmaceuticals
Singapore's manufacturing output grew 7.6 per cent in June 2012 year-on-year. Excluding biomedical manufacturing, output fell 1.5 per cent. The rise in June industrial output was primarily due to pharmaceuticals, which rose 68.7 per cent year-on-year. As May's manufacturing growth was also revised to a higher 6.8 per cent, economists estimate that Q2 gross domestic product probably grew faster than the official flash estimate of 1.9 per cent year-on-year. Economists had expected industrial production to rise 3.2 per cent year-on-year and be unchanged month-on-month after seasonal adjustments, according to a Reuters poll of 13 economists. This could also mean the risks of a feared technical recession have fallen too, some economists say. But that could not move them to upgrade forecasts for full-year GDP, as the global economy loses traction and underlying manufacturing weakness showed up in sectors such as electronics. Excluding the 54.4 per cent year-on-year surge in biomedical production, manufacturing output shrank 1.5 per cent in June from a year ago, the Economic Development Board (EDB) said The sequential growth numbers too, showed that the biomedical cluster did the heavy lifting for manufacturing in June. In month-on-month terms, overall industrial output rose 3.9 per cent after seasonal adjustments, but fell 3.8 per cent minus biomedical output. Stripping out the volatile sector, June's seasonally-adjusted industrial production index sank to its lowest reading since November last year. Electronics continued to shrink year-on-year. Even though its contraction narrowed from 9.4 per cent in May to 4.5 per cent in June, prospects for the cluster, which accounts for more than a third of manufacturing, remain dim. Chemicals and precision engineering output shrank year-on-year for a second consecutive month, offsetting stronger 7.6 per cent growth in the transport engineering cluster. But even that was a sharp slowdown from the 36.2 per cent growth posted in May. The pace of growth in general manufacturing also slowed to 0.6 per cent in June, from 3.6 per cent in May. This leaves scope for the central bank to fine-tune monetary policy to spur growth instead of focusing on reining in inflation, they said.
Banking
S'pore banks 5 years behind in analytics use, says SAS
The local banking industry is about five years behind global counterparts when it comes to adopting business analytics technology, said Bill Lee, SAS Singapore managing director. While banks here are warming up to the tools compared with other industries, they are behind the curve compared with the Citibanks of the world, he said.Jim Goodnight, SAS CEO, pointed to HSBC as a large global customer, and said the bank uses SAS' software to determine the probability of fraudulent card use, he said. Data intelligence works well with patterns and breaking down customer behavior, so industries like insurance companies have adopted it to weed out fraud cases as well, he said.
Bank loans growth hits the skids
Bank loans growth is gradually weakening, as persistent economic uncertainty curbs business activity and banks themselves lend carefully. Analysts expect loans growth for the year to slow to the low teens, significantly below last year's 30 per cent growth, but add that such a pace remains healthy. Singapore-dollar loans to businesses and consumers grew 7.6 per cent over the first six months of this year, down from 16 per cent over the same period last year. Preliminary data for June from the Monetary Authority of Singapore shows that loans and advances from domestic banking units grew a slower 1.7 per cent over the month, after a 2.2 per cent spike in May thanks to a sharp rise in business lending.
Singapore tells banks to review interbank rate setting
Singapore's central bank has ordered banks in the city-state to review the way benchmark interbank borrowing rates are set, as regulators worldwide scrutinize the troubled Libor system. Regulators in Singapore and other major financial centres are looking into reforming interbank borrowing rates following suspected rigging of the London interbank offered rate (Libor).More than a dozen banks are under investigation in the United States, United Kingdom and Japan for allegations they tried to manipulate interbank rates. British bank Barclays was fined US$453 million last month after it admitted its traders tried to rig its rate submissions.Libor and other similar benchmarks are used to price trillions of dollars worth of loans and derivative contracts. The Mas' main concerns focus on the Singapore interbank offered rate (Sibor) and the Singapore swap offer rate (SOR), the two main benchmarks used to determine mortgage loans in the city-state.Sibor is set daily, based on a panel of banks who submit the rate at which they could borrow funds if they were to ask for and accept a rate from another bank in the region in a reasonably sized market. For the SOR, the panel of banks submit the cost of borrowing US dollars for a certain period of time and swapping them into Singapore dollars for the same period of time. It is commonly used as many banks in Singapore rely on US dollars for their wholesale funding. Ms Teo added all rates set by a similar process will be reviewed, though it is too early to say what changes the review will lead to. The Association of Banks in Singapore, which runs the interbank rate panel, said it is looking into the rate-setting process but did not provide any details on the nature of their review or how long it will last. The Mas said ABS did not expect further withdrawals of banks from the panel, which now has a dozen banks sitting on it. While the fallout from the Libor scandal has discredited the current system, regulators have said it will be tough to come up with a ready-made replacement system. One big obstacle is that many outstanding financial contracts are linked to the rates, so scrapping them straight away would lead to difficulties pricing them. – REUTERS
Singapore June bank lending rises 1.7% from May
Total bank lending in Singapore rose 1.7 per cent in June from May, central bank data showed. Loans and advances by domestic banking units in the city-state amounted to S$452.57 billion ($362.87 billion) last month, up from S$444.98 billion in May. Bank lending rose 20.9 per cent in June from a year earlier. Housing loans to consumers rose to S$139.7 billion in June from May's S$137.7 billion.
Tourism
Q1 tourism receipts higher by 8%
Singapore attracted nearly 3.6 million visitors in the first quarter of this year, up 15 per cent from the corresponding quarter last year, while tourism receipts climbed 8 per cent to $5.8 billion. According to data released by the Singapore Tourism Board (STB), the highest jump in tourism receipts came from India and China, up 29 per cent to $267 million and 24 per cent to $658 million respectively. In terms of visitor numbers, the top five visitor-generating markets in the first quarter were Indonesia (670,000), China (542,000), Malaysia (285,000), Australia (230,000), and Japan (193,000) - accounting for slightly over half of all visitor arrivals. The highest growth markets in terms of visitor numbers were Taiwan (45 per cent), Germany (34 per cent) and China (32 per cent) as a ramp up in flight capacity on the Taipei-Singapore route boosted travel demand from Taiwan while visitors from Germany came to Singapore for MICE events, cruises and stopovers, the STB noted. However, visitor arrivals from Thailand slipped 4 per cent, as the nation recovered from the heavy floods which assailed the country late last year. Meanwhile, gazetted hotel room revenue continues to grow, hitting $0.6 billion which represents a growth of 6 per cent year on year. Singapore saw a record high revenue per available room (RevPAR) in February as RevPar soared to $239 on the back of room demand during the Singapore Air Show. For the quarter as a whole, the average room rate was $258, up 11 per cent, while average occupancy rate hit 87 per cent, climbing two percentage points, while RevPAR came in at $223, 14 per cent higher.
Singapore Airlines' passenger carriage grew 11.9 year-on-year against a 6.3 per cent increase in capacity, it announced on SGX. Consequently, passenger load factor (PLF) improved 4.2 percentage points to 83.0 per cent. The number of passengers carried increased by 9.8 per cent to 1.5 million. According to SIA, June saw the start of the summer travel peak season and PLF strengthened across all regions. Passenger carriage growth outstripped capacity growth in all regions as demand was boosted by promotional activities. The company expects passenger yields to continue to come under pressure with the promotional fare activities.SilkAir, a wholly owned subsidiary of SIA, recorded 25.8 per cent year-on-year improvement in passenger carriage against growth in capacity of 26.4 per cent. As a result, PLF was 0.4 of a percentage point lower at 78.7 per cent. The PLF on East Asia and Pacific routes declined by 1.6 percentage points as the growth in traffic failed to match the capacity increase. Overall cargo traffic was 0.5 per cent lower than the same month last year, while cargo capacity increased by 0.9 per cent. Consequently, cargo load factor in June 2012 fell by 0.9 of a percentage point. Cargo traffic for the East Asia and South West Pacific route regions did not keep pace with the larger capacity increase, resulting in a 7.0 and 2.3 percentage point decline in the region's load factor respectively.
Changi Jan-June passenger traffic up 11.6% over first-half 2011
Singapore Changi Airport handled 4.4 million passenger movements last month, a 9.7 per cent increase over the previous year. For the first half of 2012, Changi Airport handled 25 million passengers, up 11.6 per cent from a year ago to 24.99 million. From January to June, passenger traffic to and from the Middle East grew by 22 per cent from a year ago; South Asia 15 per cent, and Northeast Asia 14 per cent respectively. China and India registered the strongest growth among the markets with at least a million passengers.. Passenger movements on low-cost carriers accounted for 28 per cent of all traffic at Changi in June 2012 and for the January-June period. There were 26,700 landings and take-offs at Changi in June, a growth of 6.4 per cent year-on-year. On the cargo front, freight movements at Changi held steady in June, with 153,300 tonnes of airfreight shipped. For the half year, air shipment volume dipped one per cent from the same period in 2011.
Aviation
Scoot to launch Singapore-Taipei route ahead of schedule
Singapore's newest budget airline Scoot announced the launch of its fifth route, to Taipei, one month ahead of schedule. Flights, originally planned to start in October, will commence from 18 September 2012, operating three times per week. The outbound service departs Singapore Changi Airport's Terminal 2 at 1.05am (Singapore Time) and arrives at Taiwan Taoyuan International Airport at 5.40am. The return flight will depart at 3.40pm and arrive back in Singapore at 8.10pm. From 29 October, frequency will step up to daily and, subject to regulatory approval, continue beyond Taipei to Tokyo's Narita International Airport.
SilkAir to make capacity adjustments in Northern Winter schedule
SilkAir announced that it will be making capacity adjustments to its network during the Northern Winter operating season from October 28, 2012 to March 30, 2013.The regional wing of Singapore Airlines (SIA) attributed this to the need to "better match capacity with prevailing market demand."SilkAir said that it will increase frequencies to Wuhan, China, and Chiang Mai, Thailand, to four flights per week. The Indochina region also gets an additional Singapore - Danang - Siem Reap circular flight on Tuesdays
SIA Q1 profit up 73% to $78m
Singapore Airlines (SIA) Group reported a 73 per cent increase in year on year net profit for the fiscal first quarter ended June 30, 2012.Net earnings rose to $78 million from $44.7 million a year ago, with group operating profit of $72 million improving by $61 million, as the airline was confronted with higher fuel costs and depressed demand following the Japanese earthquake a year ago. Group revenue rose 6 per cent to $3.78 billion from a year ago, bolstered by a 9.6 per cent improvement in passenger carriage.SIA Group said traffic growth was driven by promotions undertaken to boost loads, amid intense competition and weak business sentiment. Consequently, yields declined 3 per cent from a year ago. Average jet fuel prices for the quarter remained high at above US$130 per barrel despite the recent correction. The parent airline company, SIA, reported operating profit of $85 million, a turnaround from a loss of $36 million a year ago. Regional carrier, SilkAir reported a decrease in profit to $18 million from $21 million a year ago. Its passenger load factor of 76.4 per cent was marginally higher year-on-year, as capacity injection of 24.7 per cent was matched by a 24.9 per cent increase in passenger carriage.SIA Engineering posted a slight dip in profit to $34 million from $35 million the same quarter last year. On the cargo front, continued weakness in air freight demand exerted downward pressure on cargo loads and eroded yields. As a result, SIA Cargo's operating loss for the first quarter widened by $35 million. Consequently, the group's earnings per share for the reporting quarter was 6.6 cents, up from 3.7 cents the same period last year.
TECHNOLOGY
SingTel to partner HP in G-Cloud project
Singtel has chosen HP as its strategic partner for the government cloud - or G-Cloud - project that it is involved in, the telco said. As part of this arrangement, SingTel and HP will work on implementing a private cloud computing infrastructure on a "whole- of-government basis" through a partnership called Innovum. The five-year tender for the G-Cloud was awarded to SingTel by the Infocomm Development Authority (IDA) in May. Then, reports had placed the deal in the multi-million-dollar range for SingTel. This government cloud will span the breadth of all the public agencies, which collectively employ about 127,000 officers across 15 ministries and 50 statutory boards. SingTel and HP had previously worked together on the launch of the first public cloud services in Singapore in 2008, dubbed Alatum. SingTel was recently awarded the renewal of the Alatum cloud services bulk tender by IDA.” The Singapore government is looking to cloud computing to provide government agencies with fast and secure access to critical IT resources required to respond to business and citizen demands," said Jim Merritt, senior vice-president and general manager for enterprise group, HP Asia Pacific & Japan. "Singapore's G-Cloud will be built on HP's CloudSystem, integrating hardware, software and services to provide shared, scalable and resilient cloud computing resources. HP also brings leading cloud innovation through the resources of HP Labs Singapore. HP is excited to partner with SingTel to deliver G-Cloud for the benefit of government services and the citizens of Singapore," he added.
S'pore retains 3rd place in innovation globally
Singapore has retained its third spot on the latest Global Innovation
Index (GII) - though apparently its strength lies mostly in its capabilities than in "creative outcomes”. The 2012 GII - jointly produced by business school Insead and the United Nations' World Intellectual Property Organization (Wipo) - ranks 141 economies on the basis of their innovation capabilities and results. The Top-10 league is a familiar list of high-income - and predominantly European - economies, led by Switzerland and Sweden. Singapore (3rd), Hong Kong (8th) and the United States (10th) are the only non-European nations in the top 10.Under the GII, five "input" factors capture the elements that enable innovative activities in an economy: institutions; human capital and research; infrastructure; market sophistication; and business sophistication. And here, Singapore scores well, emerging first in the "input" sub-index. But on "innovation output" - the results of innovative activities in the economy - Singapore ranks only 11th.Proxy "output" measures include knowledge creation indicators such as patent applications, "creative intangibles" (for example, trademark registrations) and "online creativity" as seen in the number of Wikipedia monthly edits and video uploads on You Tube. The GII is a simple average of the input and output sub-indices. The study also looks at another measure - the Innovation Efficiency Index, which is the ratio of the two sub-indices. It shows how much innovation output a country is getting for its inputs. And here Singapore ranks in the bottom half, at 83rd.The GII report, however, focuses mainly on the positives. It also points to Singapore's top rankings in 10 indicators - from government effectiveness and cost of redundancy dismissal, to employment in knowledge-intensive services and royalty and licence fees payments.
Education
Yale-NUS College holds it’s groundbreaking
Singapore took a concrete step in its plans to include a liberal arts component in its increasingly diverse higher education landscape. The Yale-NUS College, the country's first residential liberal arts college, held its groundbreaking ceremony at the National University of Singapore (NUS) with Prime Minister Lee Hsien Loong as guest-of-honor. Mr. Lee said that the college's "broad-based, multi-disciplinary undergraduate curriculum develops critical thinking, appreciation for complexity, communications and leadership skills", along with an "immersive residential college system to promote personal and intellectual growth". "It takes the best of US liberal arts education from Yale, adds NUS' distinctive global and Asian strengths and adapts it to our different social and cultural contexts to create an experience more relevant to students from Singapore and Asia," he added. The college is due to commence classes in August next year and will house three residential colleges with nine classrooms and 39 faculty offices per residential college. The college has enrolled 130 students for its first cohort, and expects the total student population at full capacity to hit 1,000. As phase one of the college's campus is expected to be completed by January 2015, it will operate from the NUS' University Town in the interim. Professor Lewis said that the college will focus on three fronts for now, namely the hiring of staff to develop a high-quality student life and student affairs programme, to fine-tune the curriculum of the college to meet the needs of each course being offered, and to build a culture of liberal arts in Singapore. On the last point, Professor Lewis said that employers in Singapore have shown support for the introduction of liberal-arts education and are looking to partner with the college in various ways. For instance, companies, such as Google, KPMG and SingTel have agreed to provide internships for Yale-NUS students.
Awards/Recognition
A*Star chief scientist wins UK award
The chief scientist of the Agency for Science, Technology and Research (A*Star), David Lane, has been named the recipient of this year's Cancer Research UK Lifetime Achievement Award. The award recognizes his contribution to research that led to the discovery of the p53, often called the "guardian of the genome". The p53 protein, which is mutated in more than 50 per cent of cancers, was first discovered in 1979. Since then, Prof Lane has dedicated his career to understanding how it offers protection against cancer. He will receive the award at the National Cancer Research Institute's Cancer Conference in Liverpool on Nov 4.
4 S'pore firms in Forbes Best under a Billion list
Four Singapore firms have made it to the Forbes Asia's "Best Under A Billion" list. Miclyn Express Offshore, which provides service vessels for the oil & gas industry, was the only firm to retain its place in the list from last year. While it is based in Singapore, it is listed on the Australian Securities Exchange. It has the highest net income and market value among the four firms, at $57 million and $529 million respectively. Joining it on the list this year are Kreuz Holdings, a fellow player in the oil and gas industry that provides integrated subsea services, as well as Lian Beng Group, a residential, commercial and industrial construction company, and Sino Grandness Food Industry Group, which produces canned vegetables and fruits. The list features 200 small and midsized companies with less than US$1 billion in sales in Asia Pacific. They are chosen from a pool of 900 candidates based on sales growth, earnings growth and return on equity in the past 12 months and over three years. These 200 firms, which come from 15 countries, experienced an average growth of 48 per cent in combined sales with US$47 billion generated in revenue collectively last year, and employed 370,000 people. The number of Singapore firms on the list has shown a downward trend over the years, falling from 20 to 14 from 2007 to 2008, and down to five in 2009.
Appointments
Manpower portfolio for Tan Chuan-Jin
Major changes have been made to the Cabinet that will see three first-termers helming a ministry. Tan Chuan-Jin - taking over as Acting Minister of Manpower from Deputy Prime Minister Tharman Shanmugaratnam who is relinquishing the portfolio. Come Nov 1, two of the ministries that currently deal with these "increasingly important" issues will be split into three to sharpen the focus on them. The Ministry of Community Development, Youth and Sports (MCYS); and the Ministry of Information, Communications and the Arts (MICA) will be reamped to form three new Ministries - the Ministry of Social and Family Development (MSF); the Ministry of Culture, Community and Youth (MCCY); and the Ministry of Communications and Information (MCI). Two of the three new and renamed ministries will be headed by first-termers Chan Chun Sing (MSF) and Lawrence Wong (MCCY).Lui Tuck Yew will also give up his Second Minister for Foreign Affairs (MFA) post to concentrate on the Ministry of Transport, where he already has his hands full. His MFA position will go to Grace Fu who has been promoted to full minister, the second woman in Singapore to hold such a post. In addition to her new post as Second Minister for Foreign Affairs, Ms Fu will also become Minister in the Prime Minister's Office and Second Minister for the Environment and Water Resources. Lawyer Indranee Rajah will be taking on a new appointment as Senior Minister of State in the Law and Education ministries. Amy Khor, Minister of State for Health and Mayor of South West CDC, will double as Minister of State for Manpower
EXHIBITIONS & SEMINARS
Record deals at Int'l Water Week
Appetite for investing in water projects seems to have swelled in the past year. Deals, projects and memoranda of understanding agreed at the just concluded Singapore International Water Week (SIWW) reached a record $13.6 billion - a huge increase from the $2.9 billion last year. The record figure comes as the annual water industry conference and exhibition takes a short break, before returning as a biennial event in 2014.The five-day event at Marina Bay Sands also attracted over 18,500 people. This year's investment sum got a shot in the arm from water-short Saudi Arabia. At a Middle East and North Africa Business Forum, the Saudi Arabia National Water Company announced an ambitious $11 billion spending plan over five years for municipal water infrastructure like water and used water plants in four major cities - Riyadh, Jeddah, Makkah and Taif. The Philippines' water authority, the Metropolitan Waterworks and Sewerage System, created a similar buzz. It unveiled its US$1.5 billion investment programme called the Water Security Legacy to better care for the water needs of 15 million residents in the Manila area. Closer to home, Singapore United Engineers Limited made public three local environmental engineering projects worth $70 million. Two of these, totaling $56.3 million, are for PUB's Changi Water Reclamation Plant. The CWRP rests at the heart of the PUB's deep tunnel sewerage system. Homegrown Hyflux Limited also opened its new $60 million Hyflux Innovation Centre at Bendemeer Road during SIWW. The building will serve to propel the water solutions and innovations company further, housing engineering design and technology commercialization departments as well as Hyflux's R&D team.
Miscellaneous
Airport fee for departing travelers to rise
Travelers departing from Changi Airport will have to pay more from next April as the Passenger Service Charge (PSC) will go up by $6 to $19.90. The new amount will apply to all air tickets purchased from November this year for travel on or after April 1, 2013.The $6.10 aviation levy and the $8 Passenger Security Service Charge (PSSC), however, remain unchanged. The charges for transfer and transit passengers, which are $9 and $13 respectively, will also stay as they are. With the higher PSC fees, departing passengers will have to fork out a total of $34. The last time that the PSC and the PSSC were revised was in January 2009.In a statement issued, Changi Airport Group (CAG) said the fee hike would help fund new investments that are required as well as to partially cover the increase in aeronautical operating costs. Over the next five years, CAG will spend more than $2 billion on an expansion and enhancement programme at Changi Airport to cater for capacity growth, preserve its safety and security standards, and improve its services and facilities. Its future plans include the development of the new Terminal 4 - which will replace the existing Budget Terminal - and the expansion of Terminal 1. These will help raise the handling capacity at Changi Airport by about 30 per cent to 85 million passengers a year. There will also be "significant investment" in airside infrastructure over the next few years including new parking stands and taxiways throughout the airport, as well as resurfaced runways and taxiways. Other improvements include replacing high-tension cables, refurbishing elevators, travellators and escalators, and replacing fire-protection systems and fire-fighting equipment.
PART III - EXTERNAL
London, S'pore ahead in yuan business
London and Singapore are seen as frontrunners in the race for a bigger slice of the yuan business as the Chinese currency continues its internalisation path.Both cities have made clear their ambitions to become an offshore yuan hub after Hong Kong.While Singapore is inching closer to its goal to host a yuan clearing bank, London also appears to be gaining pace and is seen by some observers as having greater potential to be the second largest offshore yuan market after Hong Kong. Singapore, however, will play a major role of providing yuan services to South-east Asian countries, noted Deutsche Bank in a recent report.
Surbana wins masterplan deal for Rwanda city
Surbana International Consultants has been awarded a contract by the City Council of Kigali to do a masterplan for the 730 sq km capital city of the Republic of Rwanda.Surbana, the first Singapore urban planning company to break into the Rwandan market, was first appointed to work on the masterplan for Kigali City's Central Business District and one of the city's three sub-districts in 2009. The masterplan was completed last year. More than 80 per cent of the plots have been sold out, with construction of this new business district to start soon. The new masterplans will establish a new structure for the city, characterized by rejuvenation of the existing urban areas, transportation-led growth, development of new integrated residential townships at the suburban areas, and the development of an attractive green park network system.” The masterplan is expected to be completed by early 2013.
S'pore to give full bank licence to 2 Chinese banks
Singapore will grant full banking licences to two Chinese banks currently operating in the city-state, of which one will act as a clearing bank for yuan transactions, Singapore's Ministry of Trade and Industry said. It said the decision formed part of an agreement to enhance banking services cooperation with Beijing under the existing China-Singapore Free Trade Agreement. Beijing will, in turn, "expeditiously process" all applications made by selected Singapore banks for the establishment of branches and sub-branches in China, the ministry said in a statement.” Singapore did not name the Chinese banks that are likely to receive the so-called Qualifying Full Bank (QFBs) licence or give a time frame to allow recipients to open more branches in Singapore and accept retails deposits. Chinese banks operating in Singapore include Bank of China, China Construction Bank and Industrial and Commercial Bank of China. Singapore said it will consider awarding new QFB licences as part of negotiations for free trade agreements. It also said foreign banks with a relatively large share of local deposits will have to incorporate locally.
SGX and LSE sign cross-trading agreement –
Singapore Exchange and London Stock Exchange said they have signed a memorandum of understanding to enable cross-trading of some of their largest and most actively traded securities. Under the agreement, SGX members will be able to trade FTSE100 securities on the Singapore bourse's GlobalQuote Board. LSE members will get to buy and sell 36 securities of Singapore's indices on the London exchange's newly-created International Board. The proposed collaboration will occur in stages. Subject to regulatory approvals, the SGX securities will be quoted on LSE by early next quarter while the LSE securities will be quoted on SGX's GlobalQuote by the first half of 2013
PART IV - BILATERAL
Reliance unit files S'pore IPO document
Global Telecommunications Infrastructure Trust (GTI), Reliance Communications Ltd's undersea cable unit, has filed a prospectus for a Singapore initial public offering (IPO) , in a deal that could raise about US$1 billion.GTI owns four subsea cable systems that carry Internet traffic and data, according to the document filed with the Monetary Authority of Singapore (MAS). It does not say how large the IPO may be. Controlled by Indian billionaire Anil Ambani, Reliance is attempting to sell assets to reduce net debt that was 358 billion rupees (S$8.3 billion) at the end of March. The Indian mobile- phone operator may seek to raise as much as US$1.5 billion in the sale, a person with knowledge of the matter said in January. At that size, the IPO would be the largest by an Indian company since Coal India Ltd's US$3.5 billion share sale in October 2010, according to data compiled by Bloomberg. It would also be the largest in Singapore since Hutchison Port Holdings Trust raised US$5.5 billion in March 2011.The company reported a profit of US$78 million in the year ended March 31, 2012, compared to US$63.7 million the year before and US$114.2 million in fiscal 2010, according to the document. It had total assets of US$1.2 billion in March. The prospectus filing allows GTI to begin meeting investors and set a schedule for the offering.
Good time to boost Singapore-India ties
Summer may be the only thing that's burning hot in India right now as interest in a lot else about the emerging Asian giant seems to have cooled off. The country that was not too long ago heralded as a potential economic superpower now has several declining economic indicators to show - which has raised concern among existing and potential investors. India’s GDP rose 5.3 per cent in the first quarter from the same period last year, marking its lowest quarterly growth since 2003. At the same time, inflation - exacerbated by a sliding rupee - is rampant, running at 7.6 per cent in May. India's high inflation has forced its central bank to be cautious in cutting interest rates, which has both perpetuated the economic slowdown and stifled domestic investment. Furthermore, policy uncertainty has deterred foreign investment, which has palpably declined. The government has not only been painfully slow in pushing through key economic and structural reforms, it has also made U-turns on some key policy announcements. These include its controversial decision to retroactively tax overseas deals involving Indian assets, which has put Vodafone's 2008 purchase of Hutchison's stake in Hutchison Essar under tax liability. Earlier, the government reversed its decision to allow foreign direct investment in the multi-brand retail sector after the ruling party failed to receive support from its coalition partners. This is the backdrop for Prime Minister Lee Hsien Loong's visit to New Delhi. Especially given that Singapore is the second largest investor in India, his visit is likely to be warmly welcomed by Indian policymakers, who are keen to show the world that India remains investor-friendly. Singapore, too, would find it beneficial to reinvigorate its economic relationship with New Delhi. Despite its recent economic misgivings, India remains one of the fastest growing economies in the world and will be a key trade and investment partner of Singapore for a long time to come - all the more so with the US and European economies slowing down. Singapore-India bilateral economic and trade ties have prospered since the two countries signed the Comprehensive Economic Cooperation Agreement (CECA) in 2005. But they need a new impetus. The second review of CECA is overdue, and could be one of the items on Mr. Lee's agenda. There is also room for enhanced cooperation in non-economic areas, including health, education and defense. A productive visit by Mr. Lee would, of course, benefit both nations. But it is fair to say that, at this time of waning international confidence in India, New Delhi would especially gain from it. Singapore has been credited for the rise of "India fever" in this region. Perhaps it can once again play a catalytic role in helping to keep the perception alive.
PM Lee in India to boost ties
Singapore and India are looking at several areas in which to strengthen their ties as Prime Minister Lee Hsien Loong flew in last night for a three-day visit. Vocational education is high on the agenda and together with Indian Prime Minister Manmohan Singh, Mr. Lee will witness the signing of two memorandums of understanding (MOUs) on cooperation in vocational education and skills development. The first of these will be signed by Education Minister Heng Swee Keat, who is part of Mr. Lee's delegation, on cooperation in vocational education and skills development with Mallikarjun Kharge, India's Minister for Labor and Employment.The second MOU will be signed between Singapore's Institute of Technical Education (ITE) and the State Government of the National Capital Territory of Delhi's Department of Training and Technical Education. These moves will facilitate the setting-up of a World-Class Skills Centre in New Delhi, modeled after Singapore's ITE. Mr Lee and Dr Singh will also witness the officials from the defense ministries of both countries ink the renewal of the Bilateral Agreement for the Conduct of Joint Military Training and Exercises between the Republic of Singapore Air Force (RSAF) and the Indian Air Force. The initial Air Force Bilateral Agreement, signed in October 2007 allowing the RSAF to conduct joint military training with its Indian counterparts at the Kalaikunda Air Force Station, is due to expire this October and the renewal will see this agreement extended for five more years. The India-Singapore Parliamentary Friendship Group (ISPFG), the formation of which was first announced when Dr Singh visited Singapore last November, will inaugurate its first meeting in conjunction with Mr. Lee's visit to India. Comprising MPs from both countries, the launch of the ISPFG will be presided by Singapore's Speaker of Parliament Michael Palmer and his Indian Lok Sabha counterpart Meira Kumar
SGX partners with NSE to enhance offshore investing
Singapore Exchange (SGX) announced a partnership between SGX and National Stock Exchange of India (NSE) to offer SGX S&P CNX nifty options from July 16, 2012 onwards. The nifty options include SGX S&P CNX nifty futures, a dominant Indian product for international participants. The partnership will enhance offshore investors' access to the Indian economy. Market-makers BNP Paribas, Optiver Australia, Susquehanna International Group, and Timber Hill have signed up to provide liquidity for trading of the nifty options. SGX, the world's biggest offshore market for Asian equity derivatives, accounts for approximately 25 per cent of nifty futures trading globally.” Investors coming to SGX will find in the nifty options, together with the nifty futures and Indian ETFs, a convenient and easy way to invest in the Indian economy and manage their risks," said Mr Michael Syn, head of derivatives at SGX.
PM Lee floats India ind'l park idea
India should build industrial parks to help plug the gap in infrastructure and avoid creating a bottleneck in foreign investment, said Prime Minister Lee Hsien Loong.Speaking on the last day of his visit to New Delhi, he told reporters that a good industrial park - providing reliable electricity, water and space - would make it easier for new set-ups in India.” He said that Singapore companies have some capabilities in this aspect and can participate in the US$1 trillion worth of infrastructure investment that the Indian government has talked about.” India also needs a substantial amount of manufacturing investment because it has made great strides in terms of services - in terms of IT, business process outsourcing and call centres - but you cannot have a whole economy based only on IT and call centres. You have to have a comprehensive economy and you are going to have hundreds of millions of young people coming into the workforce over the next decade and manufacturing has to be one of the areas where they can find good jobs
Visit by State Government of Gujarat delegation to Singapore
A 20 member delegation led by Sh. HK Dash, Principal Secretary of the Water Supply Deptt of Government of Gujarat and top executives from business sector, such as Jagdish Shah(iNDEXTb), Mohammad Athar(PwC), Rajiv Modi(Cadila Pharmaceuticals) in the State visited Singapore from 2- 4 July, 2012. The delegation hosted a seminar for the potential investors in Singapore showcasing investment opportunities in Gujarat ahead of Vibrant Gujarat Summit in January, 2013. It was attended by 70+ people from various sectors like real estate, technology, waste and water management, pharmaceuticals and petrochemicals. It paved the way for further deliberations with the interested investors. The delegation also hosted a seminar jointly with the Confederation of Indian Industry (CII), International Enterprise (IE) Singapore and the Singapore Chinese Chamber of Commerce and Industry (SCCCI) on investing in Gujarat and attended a roundtable conference hosted by IE Singapore and PwC. The delegation also visited Marina Barrage and the National University of Singapore. Earlier this year, in March 2012, Hyflux Utility (India), together with its Japanese partners Hitachi and Itochu Corporation, signed a co-developer agreement for the development of a seawater desalination plant with a capacity of 336,000 cubic meters per day to be located in the Dahej Special Economic Zone in Gujarat. This is Hyflux's first large-scale water project in India.
Visit by Sh. Kamal Nath, Minister for Urban Development
Sh. Kamal Nath visited Singapore from 1 – 5 July, 2012, and attended the India specific and other sessions in the Singapore International Water Week, 2012. He was one of the Speakers in the Joint Opening Plenary Session for World Cities Summit and Clean Enviro Summit, which featured high level speakers from government, industry and international organizations. Different ideas were shared at this platform in creating a liveable and sustainable city. Sh. Nath highlighted the need for extensive urban infrastructure development such as water supply, sanitation, transport, roads etc. on a gigantic scale to meet the challenges of future. The Minister also participated in a session “In-Focus” on India and emphasized upon the need to improve efficiency and inclusiveness in the development of urban infrastructure. Minister Kamal Nath also met Mr. Goh Chok Tong, Emeritus Senior Minister, Singapore, and Mr. Lim Hng Kiang, Minister for Trade and Industry.
Visit by Kerala Delegation
A delegation from Kerala Government led by Sh. S Jayakumar, Chief Secretary of the state, Sh. PH Kurien, Principal Secretary(IT & PWD), Sh. KS Srinivas, Special Secretary (Industries), Sh. P Nandakumar, KSIDC and Sh. S Ramnath, KINFRA visited Singapore on 19 – 21 July, 2012 . The delegation aimed to hold a Roadshow in Singapore for the forthcoming ‘Emerging Kerala 2012 – a Biennial Global Connect’ event. The “Emerging Kerala” event is scheduled from 12 – 14 September, 2012 at Kochi in Kerala State, India.
In the morning of the 20th July, a breakfast meeting was organized jointly by the High Commission of India, Singapore, CII and NASSCOM for the delegation to interact with select high level invitees from manufacturing, IT, marine, fund management, shipping, infrastructure, water facility, industrial & real estate development sectors. The hour and a half long interaction was Chaired by Ambassador Gopinath Pillai, Chairman of the Institute of South Asian Studies.
Later in the day, the delegation visited ITE College East and had a detailed tour of its facilities. The delegation evinced substantial interest in the manner in which the ITE imparted technical training in Singapore. Subsequently, the delegation also visited the Singspring Desalination Plant at Tuas ( Hyflux facility) and the Pinnacle@Duxton- a public housing project of the HDB, for a closer look. The Pinnacle, the delegation was informed, drew its design inspiration from the Hollywood movie, “The Matrix”.
Source: Commercial Section, Embassy of India, Singapore
