Support for Japan PM tumbles: poll
(TOKYO) Japan’s prime minister is on thinning ice with voters, who expressed growing discontent in a new poll and rejected the ruling party’s candidate in a key local election at the weekend.
M’sia Airlines Q4 net profit tops RM610m on fuel-hedge gains
MALAYSIA Airlines has posted a slight operating profit of RM4 million in the fourth quarter to end December owing to a reduction in capacity, the result of the economic downturn.
Lufthansa pilots start four-day strike
(FRANKFURT) Deutsche Lufthansa AG, Europe’s second-largest airline, scrapped 67 per cent of its services yesterday as pilots start a four-day strike over work assignments.
Gulf Air to combine first and business classes
(BAHRAIN) Bahrain’s national carrier Gulf Air will combine its first class and business class, starting on March 1, its chief executive said on Sunday, as the loss-making airline looks to reduce costs.
India charges British duo over planespotting
(NEW DELHI) Two British planespotters detained in New Delhi last week have been charged with illegally intercepting communications between pilots and airport authorities, police said yesterday.
Taiwan’s GDP grows by 18.02% in Q4
(TAIPEI) Taiwan’s economic growth accelerated in the fourth quarter, beating expectations on a boost from strong Chinese demand for high-tech products, though the strength is unlikely to alter the monetary policy outlook.
Calls flood school in Google row
(BEIJING) A Chinese school accused last week of links to cyberattacks on Google that have strained Sino-US ties has since received a flood of calls from students interested in attending.
Taiwan’s Ta Chong Bank takes cue from McDonald’s
(SINGAPORE) Ta Chong Bank Ltd, the Taiwan lender controlled by Carlyle Group LP, will woo retail customers with a ‘McDonald’s strategy’ and boost profit fivefold by 2012 to attract potential buyers, president Edmund Koh said.
SembMarine posts record profit
SEMBCORP Marine managed to ride through last year’s downturn to post a record high net profit of $700.1 million, a 62.8 per cent rise over $429.9 million in FY’08 as higher revenue recognition from completed rigs rolled in. More than two-fifths of the net earnings came from the fourth quarter.
SPH to issue $300m fixed-rate notes
SINGAPORE Press Holdings (SPH) will issue $300 million of fixed-rate notes due in 2015 and has mandated OCBC Bank as dealer.
ST Engg arm wins RSAF contracts worth $363m
ST ENGINEERING yesterday announced that its aerospace arm, ST Aerospace, had been awarded two maintenance contracts for six years by the Republic of Singapore Air Force (RSAF) for a total of $363 million.
Downturn drags Cosco net down 64%
COSCO Corporation’s net profit tumbled 64 per cent to $110 million for the full year ended Dec 31, 2009, as operating costs swelled and core operations weakened.
ARA’s Q4 net up 47%, proposes bonus issue
ARA Asset Management posted improved fourth quarter earnings and proposed a cash dividend and a one-for-five bonus issue.
China Milk says it has cash to repay debt
CHINA Milk Products Group yesterday said that it holds enough cash to repay some US$170 million in debt, 10 days after it admitted that it was in technical default due to ‘administrative and procedural’ delays in repayment.
Hotel Prop full-year profit rises 7.2%
THANKS to a sharp drop in fair-value losses, Hotel Properties Ltd reported a 7.2 per cent rise in full-year net profit despite a 27.6 per cent dive in revenue.
Old Chang Kee earnings surge
THE proof is in the puff – Old Chang Kee has reported a 92.4 per cent jump in net profit for the full year on firmer gross profit.
SINGAPORE ROUNDUP
Furniture show at
2nd update to registers of electors complete
THE second update of the voter rolls in Singapore has been completed and the lists are open for public inspection from today to March 8.
At a glance
Why Budget is non-event for shares
AROUND this time every year, stock market investors ponder the potential impact of the government’s Budget on equity prices.
ADB plans water bonds in Japan
THE Asian Development Bank and Daiwa Securities Group plan to issue ‘water bonds’ in Japan designed to lure wealthy but conservative institutional and individual investors into helping finance solutions to a looming water crisis in parts of Asia and the Pacific.
After year-long recession, Thai economy grows 5.8% in Q4
(BANGKOK) Thailand’s economy emerged from a year-long recession last quarter on increased exports and government spending, adding pressure on the central bank to start withdrawing monetary stimulus.
Thailand’s Korn is world’s top finance minister
(BANGKOK) At 1.93 metres in height, Thailand’s finance minister often stands above the crowd. That’s even more the case after winning ‘Global Finance Minister of the Year’ honours from The Financial Times’ Banker magazine.
S Korean pension fund to change rules to buy IPO stock
(SEOUL) South Korea’s pension fund, National Pension Service (NPS) expects to change its rules so that from next month, it can buy into major domestic initial public offering (IPO) shares, including Korea Life Insurance.
Ex-US Treasury secretaries back ‘Volcker Rule’
(WASHINGTON) Five former US Treasury secretaries urged Congress on Sunday to bar banks that receive federal support from engaging in speculative activity unrelated to basic bank services.
Eyes on Estuary for impact of anti-speculation moves
ALL eyes in the property market are on MCL Land’s preview this week of its Yishun condo to see if demand has been dented by last Friday’s anti-speculation measures.
Goldman lowers China developers’ price estimates
(SINGAPORE) China’s property developers had their share-price estimates lowered by as much as 32 per cent at Goldman Sachs Group Inc, which cited increased uncertainty from government tightening measures.
Sun Hung Kai wins Hong Kong’s first land auction of year
(HONG KONG) Sun Hung Kai Properties Ltd, the world’s biggest developer by market value, won Hong Kong’s first land auction of the year with a bid that exceeded most analysts’ estimates after selling 900 homes over the weekend as demand for property in the city surges.
Fewer in US falling behind in mortgage payments
(WASHINGTON) The number of American borrowers falling behind on their mortgage payments dropped sharply at the end of last year, a sign the foreclosure crisis is beginning to ebb.
Prime office rents continue to dip: Cushman
PRIME office rents continued to soften going into 2010 and could slip another 2-3 per cent this quarter, says Cushman & Wakefield.
Malaysia’sMah Sing may gear up for land acquisitions
(KUALA LUMPUR) Mah Sing Group Bhd, a Malaysian developer, may gear up to build a RM1 billion (S$414.26 million) war chest for acquiring land to capitalise on an expected rebound in the Malaysian property market, group managing director Leong Hoy Kum said in a statement yesterday. ‘We believe that developers like us with sufficient cash and a healthy balance sheet will continue to grow stronger,’ Mr Leong said, in a statement accompanying the company’s fourth-quarter results.
US$500m Gulf property fund launched
(DUBAI) Al Rajhi Capital, the investment arm of Saudi Arabia’s Al Rajhi Bank and Bahrain’s Arcapita Bank has launched a US$500 million Gulf property income fund to capitalise on falling prices, the firms said yesterday.
India’s GDP seen growing 7.5% this year
(NEW DELHI) India’s economy will accelerate in the coming years as it recovers from the global downturn and the government will act to protect the poor from the impact of food inflation, the Indian president said yesterday.
Reliance ups bid for LyondellBasell
(NEW YORK) Reliance Industries Ltd, owner of the world’s largest oil-refining complex, raised its offer for bankrupt LyondellBasell Industries AF to about US$14.5 billion, according to two people with knowledge of the offer.
India’s NMDC eyes Brazilian stake
(MUMBAI) Indian state-run miner NMDC Ltd is set to buy 50 per cent of Ferrous Resources Ltd’s Brazilian operations for US$2.5 billion, the Economic Times newspaper said yesterday.
Indonesian CPO contract faces hurdles
(JAKARTA) A planned new palm oil futures contract in Indonesia, the world’s largest producer of the commodity, faces an uphill struggle against an established Malaysian rival and the imminent launch of a US competitor.
Jakarta eyes limits on rights issues for foreigners
(JAKARTA) A proposal by Indonesia to limit foreign investors’ participation in certain share issues could scare off overseas investment, some analysts and fund managers said.
M’sia recovering better than expected: Zeti
(KUALA LUMPUR) Malaysia is on the path to recovery and any increase in interest rates should be viewed as ‘normalisation’ and not ‘tightening’, the country’s central bank governor said yesterday.
Dry spell to hit M’sia palm oil output
(KUALA LUMPUR) Malaysia may see weak palm oil production growth for a second straight year and miss government output target as yields suffer due to the current hot weather, estate owners said on Monday.
China’s oil imports seen to drive tanker market
(SINGAPORE) China, the world’s second-largest energy consumer, may lead an increase in demand for tankers as its energy needs rise, Poten & Partners said in a report.
Cheaper anti-piracy actions needed
(NEW YORK) The US says that it wants to find cheaper options to battle pirates off the coast of Somalia, as an international naval force has pushed the seaborne brigands from the one million square miles of the Gulf of Aden into an area twice that size in the Indian Ocean.
LME proposes joint venture with Baltic Exchange
(LONDON) The London Metal Exchange (LME), the world’s largest market for aluminium and copper, has proposed forming a joint venture with the Baltic Exchange to take trading of freight derivatives onto a new exchange.
Strike hits Bangladesh’s ship-breaking industry
(DHAKA) Bangladesh’s ship-breaking yards in Chittagong, the country’s second-largest city, ground to a halt yesterday as some 30,000 workers protested against a government decree aimed at improving environmental standards in the industry, police said.
Developers come under pressure
PRESSURE on property developers was one of the main features of trading yesterday after the government announced a fresh set of anti-speculative measures over the weekend.
Johor oil storage terminal plans RM90m expansion
WITH continuing strong demand and limited supply of oil storage in Singapore, a newly-opened Johor oil storage terminal yesterday announced further expansion plans to try to capture terminalling business from Singapore-based oil traders.
Small-cap portfolio rises just 1.4%
THE year started strongly for the equities market, before fears of excessive tightening in China and sovereign defaults by fringe European Union countries caused risk aversion to spike.
A budget for quality jobs, quality growth
From preserving jobs to creating quality jobs; from putting a floor under growth to boosting the quality of growth. That’s the big shift from year of recession 2009 to year of recovery 2010.
Foreign worker levies raised to give businesses a nudge
(SINGAPORE) Singapore is raising its foreign worker levies in a bid to get businesses here to restructure and upgrade their operations – and rely less on lower skilled foreign labour.
More tax deductions to spur innovation
ALL businesses may claim more tax benefits on spending on a wider range of innovative activities, under a new Productivity and Innovation Credit scheme announced in yesterday’s Budget.
New $2b fund to boost productivity
THE National Productivity Fund will have $2 billion to back its moves to boost productivity in specific industries and enterprises.
Could the government have gone further?
THE stated aim of the Budget was ‘to chart a new course for the economy, growing it by improving productivity’. In theory, this marks an important shift in the way in which economic growth is generated in Singapore – with less dependence on expanding the workforce (via immigration) and more emphasis on increasing output per head.
DPM Teo to lead productivity council
DEPUTY Prime Minister Teo Chee Hean will lead the high-level National Productivity and Continuing Education Council that will take on the big challenge to more than double Singapore’s productivity growth to 2-3 per cent yearly over the next decade.
Tax allowance to make M&A cheaper
COMPANIES keen to take the mergers and acquisitions (M&A) route to growth will be boosted by a new tax allowance that offers them cost savings.
Moving towards inclusive growth
THE 2010 Budget delivered by Finance Minister Tharman Shanmugaratnam yesterday adds further substance to the recommendations of the Economic Strategies Committee (ESC) which were released recently.
Property tax gets a welcome tweak
MOST market watchers have welcomed Finance Minister Tharman Shanmugaratnam’s move towards a progressive property tax regime for owner-occupied residential properties as a fairer system.
2 measures to up construction productivity
FINANCE Minister Tharman Shanmugaratnam yesterday announced two key initiatives to help the construction industry raise its productivity levels – fresh funds for contractors to develop new capabilities and technologies, and a higher foreign worker levy.
New scheme to maximise land use benefits 9 sectors
THE government has decided to do away with a tax allowance scheme for businesses introduced in the 1940s to encourage Singapore’s industrialisation. The axed scheme will be replaced by one designed to enhance land productivity – but only companies from nine chosen sectors will benefit from the new scheme.
Tax wings for angels to lift funds for firms
THE government will provide up to $250 million as initial seed capital for public-private co-investment funds to be set up later this year to invest in Singapore firms, part of a broader initiative to help Singapore businesses attract more private capital to grow.
Maritime sector gets some fresh wind in its sails
SINGAPORE’S maritime industry was one of several to benefit from incentives unveiled in this year’s Budget targeting ‘high-growth potential’ activities to grow Singapore into a ‘global business hub’.
Fresh dough to nourish globally competitive firms
IN a bid to develop more home-grown globally competitive companies (GCCs), the government will pump almost $400 million into programmes to help local firms boost their capabilities, internationalise and develop talent.
S’pore pumps another $1.5b into R&D
THE government is offering higher tax incentives to encourage more companies to use Singapore as their base for bringing ideas from concept to reality.
A carrot for becoming productive through innovation
CUSTOMERS at Japanese restaurant Ebisboshi Shotengai don’t have a waiter to tend to them and take their orders when they dine there.
In good spirits
CHEERS to the government! Yesterday, Finance Minister Tharman Shanmugaratnam said that travellers will be given the flexibility to purchase an additional litre of duty-free wine or beer in lieu of one litre of duty-free spirits.
Green rebate for imported used hybrids as well
THE Green Vehicle Rebate scheme will be extended to imported used green vehicles, thus allowing used petrol-electric hybrids to enjoy the same lower registration taxes as new hybrids.
Supporting family members becomes less taxing
THIS year’s Budget gave greater recognition to taxpayers who have to support their family members, especially handicapped and disabled ones.
Big first step in a decade-long journey
THIS year, Finance Minister Tharman Shanmugaratnam unveiled what is intended to be a transformational Budget. This is targeted chiefly at improving the skills of the local workforce, raising productivity and helping local Singapore businesses conquer overseas markets.
Govt expects Budget deficit of $3 billion
THE Singapore government expects to incur an overall Budget deficit of around $3 billion for the financial year 2010 – up slightly from the $2.9 billion for last year.
Tharman’s transformational Budget
WHAT is most remarkable about Budget 2010 is what could remain unstated. While much of the world is still focusing on how to unwind the massive fiscal stimulus that had to be deployed at the height of the Great Recession of 2009, Singapore’s stimulus is a non-issue, as the economy has returned to self-sustaining growth.
From Resorts World to your living room
IF YOU were impressed by the wallcoverings at the newly opened Resorts World Sentosa (RWS), it is now much easier to get something similar for your own home – without the help of interior designers or architects.
White Lodge branching to Vietnam, India
LOCAL kindergarten group White Lodge is expanding overseas, with branches planned in Vietnam and India.
Lots of hongbao and feasting
CHINESE New Year (CNY) celebration is one of the major events in our company which employees look forward to very much every year.
Hand-holding with credit and insurance
WHEN businesses were reeling from the economic crisis last year, OCBC Bank made a surprising move by offering unsecured loans to small firms with a track record of just one year.
Some practical pointers on using market research
WHILE most people have some sense of what market research involves – eg ‘do a survey’ or ‘run focus groups’ – they do not always understand what research can or cannot do.
What they say
As expected, the 2010 Budget is rather soft on the property market given the run-up in the residential market.
More business friendly
S’pore invests on road to the future
(SINGAPORE) If the task last year was a dire need to save jobs, Budget 2010 is set squarely on the longer term, with sights on quality jobs for a restructured advanced economy.
Anti-speculation moves dent property counters
(SINGAPORE) Singapore property counters took a hit yesterday, after the government’s latest moves to quell speculation.
Lufthansa strike hits SIA code-share flights
(SINGAPORE) Singapore Airlines (SIA) said the pilots’ strike at its star Alliance partner Lufthansa had effected almost 260 of its code-share flights.
Three-Minute Digest
IF the task last year was a dire need to save jobs, Budget 2010 is set squarely on the longer term, with sights on quality jobs for a restructured advanced economy.
Impact of speculation curbs open to debate
IN a move that took some people by surprise, the government last Friday unveiled two measures designed to cool speculation in the property market.
Greece’s pain puts spotlight on future of welfare state
IT would be possible in other circumstances to disregard the ongoing story of Greece and its debts as a tedious tale of financial markets.
Will Japan become the next Greece?
THE search for the next Greece is finding its way to an unlikely place: Japan.
Turning Singapore into an advanced economy
These are excerpts of the Budget speech delivered yesterday in Parliament by Finance Minister Tharman Shanmugaratnam:
Caution despite market strength
DESPITE yesterday’s strength in regional markets, we have reasons to stick to our cautious view.
Brokers’ Take
GENTING Singapore reported a FY2009 net loss of $277.6 million versus a net loss in 2008 of $124.8 million and the street’s expectation of $210 million.
US$ slips on slight upturn in risk appetite
(LONDON) The US dollar slipped yesterday due to a slight improvement in risk appetite after US stocks eked out gains on the view that the financial system had improved enough for the Federal Reserve to increase its discount rate.
Obama proposes new Medicare tax
(WASHINGTON) US President Barack Obama proposed the first Medicare tax on unearned income, while raising fees on drugmakers and scaling back a levy on high-end benefits as part of a new plan to overhaul the nation’s health care system.
Toyota’s internal document raises new questions
(TOKYO/WASHINGTON) A Toyota Motor internal document has raised new questions about whether it stalled on a US regulatory response to red flags about its vehicle safety.
Greece ready to do more to meet goal
(ATHENS) Greece is prepared to take extra fiscal measures to make sure it meets its deficit-cutting targets, the country’s central banker said yesterday. He said financial markets were over-reacting to its financial woes.
Schlumberger to buy Smith Int’l for US$11b in stock
(NEW YORK) Schlumberger Ltd, the world’s biggest oilfield services company, has agreed to buy fellow industry player Smith International Inc for about US$11 billion in stock.
Hurt Locker trounces Avatar at the Baftas
(LONDON) The Hurt Locker was the big winner of this year’s British Academy Film Awards, or Baftas, as director Kathryn Bigelow repeatedly defeated her ex-husband James Cameron, maker of Avatar.
RBS chief waives bonus as bank negotiates pay deal
(LONDON) Stephen Hester, chief executive of Royal Bank of Scotland, will forgo his 2009 bonus, sources said on Sunday, as the rescued bank hammers out a pay deal for staff with the British government.
BP, Shell plans to cut project costs may falter
(LONDON) BP plc and Royal Dutch Shell plc may falter in their campaigns to save billions in oil and gas project costs as a resurgence in drilling and demand for engineers threaten to revive inflation in the industry.
Lehman bankruptcy advisers paid US$642m
(NEW YORK) Lehman Brothers Holdings, the investment bank liquidating in bankruptcy, paid its lawyers and other advisers US$641.9 million in 16 months since September 2008, according to a regulatory filing.
|