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Weekly News Select
Jun 11, 2021 / Issue 23
Top News for the Week
• Price premium of HDB resale flats in mature estates may shrink further
• Increased supply of private homes on confirmed sites a calibrated move as developers
seek land
• White site at Marina View triggered from Reserve List
• Developers, contractors battle labour crunch, supply shortage to meet deadlines
• Singapore to ease Covid-19 curbs from June 14 in two steps
• Singapore to bar short-term visitors from Guangdong due to rising Covid-19
infections
• Enterprise Singapore advises firms to test employees regularly for Covid-19
• As Covid-19 becomes endemic, S'pore will shift focus from daily case numbers to
their clinical condition
• Singapore retail sales jump 54% in April from last year's circuit-breaker low
• Too early to tell what G-7's historic tax deal would mean for Singapore: Lawrence
Wong
• G-7's global minimum tax deal may nullify any tax advantage Singapore offers
Residential
Price premium of HDB resale flats in mature estates may shrink further
The price gap between Housing Board (HDB) flats in mature estates and those in non-mature
estates is likely to continue to narrow in the coming years, Huttons Research said.
This comes as buyers are shunning decaying leases despite amenities and accessibility, while some
younger estates are also transforming and winning favour with residents, the real estate
consultancy noted in a report.
If the trend persists, "it is possible that we will see a million-dollar flat in a non-mature estate
soon", said Lee Sze Teck, director of research at Huttons Asia.
With a more central location as well as numerous amenities and facilities nearby, flats in mature
towns tend to command a premium over those in non-mature estates. Sellers also expect this
because they too had paid a premium when they first bought their flats, Huttons wrote.
Generally, that should be the case, given real estate's "location, location, location" mantra. But the
differentiation between mature and non-mature estates has blurred in recent years, with average
resale prices in the latter areas climbing at a faster rate, the research team found from its analysis
of price data from 2010 to May 2021.
One possible reason for the shrinking premium is the age or remaining land tenure of the flats that
changed hands, Huttons said. "Even if your flat is in a mature estate, you will not be able to fight
against a decaying lease, which seems to have a greater impact."
The gap narrowed for three-room and five-room flats in the past decade, partly because there was
an increase in new supply of such flats being built and sold in non-mature estates. That meant the
average age of these flat types transacted in non-mature estates came down more quickly than in
mature estates.
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Jun 11, 2021 / Issue 23
However, four-room flats' price gap remained fairly stable as both mature and non-mature towns
saw an influx of such homes. Their average ages therefore started to decline across the country at
around the same time.
Executive and larger flats also saw the price premium thinning. Huttons attributed this to robust
demand for bigger living spaces since the start of the Covid-19 pandemic, driven by work-from-
home arrangements and movement restrictions. That helped prices rise more significantly in non-
mature estates, even though the public housing authority had stopped building larger homes in
recent years as family demographics changed.
Meanwhile, the reverse was seen for two-room flats, with their average transacted prices in non-
mature estates fetching a premium over those in mature estates. This came as the former's
transactions involved much newer flats; on average, they were less than 10 years old, versus mature
towns' flats which were more than 35 years old.
"It appears that age plays a more important role in the value of flats in recent years, rather than the
location in a mature or non-mature estate," the Huttons analysts wrote.
"This is a valid concern, as no one likes the thought of their home depreciating to zero as the lease
runs down," they said.
Link to the story:
https://www.businesstimes.com.sg/real-estate/price-premium-of-hdb-resale-flats-in-mature-estates-may-shrink-
further
https://www.edgeprop.sg/property-news/age-over-location-when-it-comes-determining-hdb-resale-price-says-
huttons
Increased supply of private homes on confirmed sites a calibrated move as developers
seek land
The bump in the supply of private housing on the Confirmed List under the H2 2021 Government
Land Sales (GLS) Programme is a calibrated move by the government - one that will nonetheless
be welcomed by developers hungry to replenish their landbank amid diminishing inventory,
analysts said.
At 2,000 units, this is a jump of nearly 25 per cent from the 1,605 units released under the H1 2021
GLS Programme.
On the Reserve List are six residential sites, two white sites, as well as a hotel site at River Valley
Road. This works out to another 4,860 private residential units (including EC units), 90,000 square
metres (sq m) gross floor area (GFA) of commercial space and 530 hotel rooms. Of the six
residential sites, three are newly introduced, namely two parcels at Pine Grove and one at Lentor
Hills Road.
Taken together, the Confirmed and Reserve Lists can yield a total of 6,860 units, easing 2.6 per
cent from 7,045 units under the H1 2021 GLS Programme.
Of the four sites on the Confirmed List, three are in the Outside Central Region (OCR), while the
fourth is at Jalan Tembusu in the Rest of Central Region (RCR).
Analysts reckon sites on the Confirmed List that will most likely appeal to developers include the
Jalan Tembusu site in the Tanjong Katong area, which can yield 645 units, and an EC site at Bukit
Batok West Avenue 8, which can yield 375 units.
The EC site is near a recent tender at Tengah Garden Walk which was awarded for S$603 per
square foot per plot ratio, said director (research) at Huttons Asia, Lee Sze Teck. Mr Lee added:
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Jun 11, 2021 / Issue 23
"This site may fetch lower taking into consideration that it is not within walking distance to an
MRT station."
Links to the story:
https://www.businesstimes.com.sg/real-estate/increased-supply-of-private-homes-on-confirmed-sites-a-calibrated-
move-as-developers
https://www.straitstimes.com/business/property/private-housing-supply-from-confirmed-sale-sites-up-25-for-
second-half-of-2021
White site at Marina View triggered from Reserve List
The Urban Redevelopment Authority (URA) will launch for public tender a white site at Marina
View after an unnamed developer made a successful application for the site's release from the
Reserve List.
The 99-year leasehold site - which can yield about 905 private homes, 2,000 square metre (sq m)
gross floor area (GFA) of commercial space and 540 hotel rooms - will be released for sale on
June 28. The white site was on the Reserve List of the H1 2021 Government Land Sales (GLS)
programme.
The developer has committed to bid a price of at least S$1.508 billion at tender, which works out
to about S$1,379 per square foot per plot ratio (psf ppr), given the maximum GFA of 101,629 sq
m.
"The site at Marina View will further inject more homes into the CBD, supporting the
government's vision of making the CBD vibrant after working hours," said Huttons chief executive
Mark Yip. "With a hotel component as part of the development, it shows the confidence of the
party who triggered the site that global travel will resume soon and it is key to secure a first-mover
advantage by acting now."
Links to the story:
https://www.businesstimes.com.sg/real-estate/white-site-at-marina-view-triggered-from-reserve-list
https://www.straitstimes.com/business/property/marina-view-site-released-for-launch-with-bid-of-1508-billion
Developers, contractors battle labour crunch, supply shortage to meet deadlines
As Singapore's construction industry grapples with a shortage of foreign workers, amid other
headaches, further disruption to project timelines cannot be ruled out, construction firms said.
Already, some construction companies allege their workers have been poached by other firms
offering fatter pay cheques, even as they've hiked salaries to retain their workers.
Recently, the wave of Covid-19 cases in India and a tightening of border control measures have
restricted workers from South Asian nations such as India and Bangladesh from entering
Singapore.
To complicate matters further, the lockdown in Malaysia, which has forced most factories to shut
for two weeks, could disrupt imports of construction materials into Singapore.
Some developers say they are working with their contractors to prevent potential delays. Others
say they are on track to meet their individual TOP schedules despite the disruptions.
Link to the story:
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Jun 11, 2021 / Issue 23
https://www.businesstimes.com.sg/real-estate/developers-contractors-battle-labour-crunch-supply-shortage-to-meet-
deadlines
HK buyers making steady investments in Singapore property
Hong Kong investors are expected to continue looking at Singapore property, though no spike in
interest is expected, said analysts.
The Singapore residential property market has been on a tear amid cheaper debt. But developers
said Singapore residents have mainly been driving demand for new condominium units. And from
the data alone, it is less clear if Hong Kong investors are pouring more into Singapore private
homes.
The first quarter of 2021 saw nine housing units transacted, down 18.2 per cent from the previous
year's 11 units, showed data from the Urban Redevelopment Authority's (URA) Real Estate
Information System (Realis). Meanwhile, April and May saw a total of four units being transacted
- the same amount sold in Q2 2020.
Previously, the number of homes purchased by Hong Kongers rose to a record 53 units in 2019,
up from 48 units in 2018.
The stronger demand at that point corresponds with the escalation of civil unrest in Hong Kong in
2019, as citizens challenged a Bill - since withdrawn - that would have allowed extradition to
mainland China.
Lee Sze Teck, research director at Huttons Asia, noted the Hong Kong government's statement in
early February that it does not recognise dual nationality. Given this, a year-on-year comparison
might not be a full representation of the data, he said, as Hong Kong citizens might have purchased
the properties under different nationalities in the past.
Analysts also point out that, more broadly, Singapore is not among the top destinations for Hong
Kong buyers to invest.
On the Singapore-Hong Kong air travel bubble, the analysts predicted only a slight growth in
transactions brought about by its setup.
Link to the story:
https://www.businesstimes.com.sg/real-estate/hk-buyers-making-steady-investments-in-singapore-property
Fewer viewings drive 11.4% fall in condo resale volumes in May after four-month
climb
Fewer viewings resulting from tighter restrictions during Singapore's heightened alert period saw
condominium resale volumes slide 11.4 per cent month on month in May, property analysts noted.
About 1,722 units changed hands in the month, compared with 1,944 units resold in April 2021,
according to flash figures from a real estate portal.
Resale prices continued to climb, rising 0.9 per cent from April. The RCR and OCR saw prices
increase 1.8 per cent and 0.8 per cent respectively, while CCR prices slipped 0.7 per cent in May
2021.
Links to the story:
https://www.businesstimes.com.sg/real-estate/fewer-viewings-drive-114-fall-in-condo-resale-volumes-in-may-after-
four-month-climb
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3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
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Jun 11, 2021 / Issue 23
https://www.straitstimes.com/business/property/condo-resale-prices-up-09-to-new-high-in-may-volume-dips-114-
amid-covid-19-curbs
HDB rents up 0.7% in May, condominium rents rise 0.3%
Rents for condominiums increased 0.3 per cent in May 2021 from the previous month, while that
of Housing Development Board (HDB) flats rose 0.7 per cent in the same period.
This marks the fifth and eleventh consecutive month of rising condo and HDB rents respectively,
according to a real estate portal.
Condominium rents increased by 7.3 per cent year-on-year (yoy), but are still down 11.4 per cent
from their peak in January 2013.
The month also saw a 1.7 per cent increase in volume to an estimated 4,603 units in May, compared
to 4,527 units in April.
This is 39.3 per cent higher than rental volume from a year ago, and 0.1 per cent higher than the
five-year average volume for the month of May.
According to Lee Sze Teck, director of research at Huttons Asia, this number was capped by Phase
2 (Heightened Alert) restrictions, which limited the number of visitors in a viewing.
HDB rents increased by 7.9 per cent y-o-y, although this is still 9.2 per cent down from their peak
in August 2013.
Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-rents-up-07-in-may-condominium-rents-rise-03-srx
https://www.straitstimes.com/business/property/condo-hdb-rents-continued-to-rise-in-may-despite-tighter-covid-19-
curbs
Keppel-backed Cove takes over Hmlet's abandoned Lumiere units
Co-living operator Cove has assumed management control of some 30 units in residential
apartment building Lumiere. These units had been given up by struggling rival Hmlet in a bid to
cut costs.
In November 2020, Hmlet walked out of a five-year master lease with Lumiere's landlord BS
Shenton - turning its back on some 43 units.
Luca Bregoli, co-founder and chief operating officer of Cove, told The Business Times (BT) that
Cove has taken over the former Hmlet flagship property at Lumiere on "entirely new terms".
This includes a revenue-sharing component on top of a fixed base rent. The new lease terms have
a "performance-based component" weaved in. This means landlords' earnings will vary based on
how well the units perform, said co-founder and chief marketing officer Sophie Jokelson.
Link to the story:
https://www.businesstimes.com.sg/garage/keppel-backed-cove-takes-over-hmlets-abandoned-lumiere-units
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www.huttonsgroup.comWeekly News Select
Jun 11, 2021 / Issue 23
Commercial
A fresh face revamps 27-year-old Bugis landmark
Bugis Junction Towers is being refurbished so this 27-year-old office development can keep up
with new projects coming up in the Beach Road/Rochor Road locale.
The S$10 million revamp currently underway involves the lower facade of the 15-storey building,
the main lobby along with the individual lift lobbies, and the interiors of lifts. Works are expected
to be completed in the second half of this year.
The building has about 20,600 sq ft of office space on average for each of its 12 office floors.
Located above Bugis MRT interchange, the asset is now 98 per cent occupied. Major tenants
include Enterprise Singapore, InterContinental Hotels Group and Beijing-based, Nasdaq-listed
coworking operator Ucommune.
Link to the story:
https://www.businesstimes.com.sg/real-estate/a-fresh-face-revamps-27-year-old-bugis-landmark
Retail
Thin dinner-time crowds in Jem and Westgate on first day of reopening after Covid-
19 closure
Dinner-time crowds were thin at Jem and Westgate on June 6, the first day the two shopping malls
in Jurong East reopened for business after a mandatory two-week closure.
The two malls were linked to a Covid-19 cluster that numbered 63 cases.
When The Straits Times visited the malls at 7pm on June 6 for two hours, some shoppers said it
was not as crowded as it was on weekends before the closures.
The malls had been closed since May 23 for deep cleaning of the premises, after investigations by
the Ministry of Health found likely ongoing transmission among visitors to the two malls.
Both malls told ST that they have completed deep cleaning and disinfection works prior to the
reopening.
The air in Westgate's air-conditioned areas will be purged daily before the mall opens for business
each day, said CapitaLand, which operates Westgate.
Air dampers in the building are also fully opened to improve air intake in the mall's kitchens and
toilets.
CapitaLand said it has also ramped up cleaning protocols in the mall.
After the mall closes for the day, autonomous ultraviolet (UV) disinfection robots will be deployed
to disinfect the premises.
This comes on top of other precautions including placing disinfection floor mats at key entrances
and coating high contact areas with an anti-microbial disinfectant.
Jem will continue to maintain its enhanced cleaning regime and safe distancing protocols, said its
operator Lendlease Singapore.
Link to the story:
https://www.straitstimes.com/singapore/thin-dinnertime-crowds-in-jem-and-westgate-on-first-day-of-reopening
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3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.comWeekly News Select
Jun 11, 2021 / Issue 23
Some Changi, Jewel retailers better prepared for closure than last year
Businesses at the passenger terminals and Jewel told The Straits Times that they have adapted in
the past year, such as by reducing the number of staff at the airport and switching to online sales.
Some have settled for just covering their costs as they await a recovery in air travel. This was
especially so for businesses that are able to rely on other revenue streams.
They said the full rental waiver for Jewel and Changi Airport tenants till June 13, as well as the
Government's additional wage support from April to June, has also provided much-needed relief.
While some are coping well with the closure, businesses that cannot rely on earnings beyond the
airport are more affected.
Changi Airport and Jewel Changi Airport Development said in separate statements that they are
in talks with businesses regarding support measures. Both said they are open to discussing changes
to their tenants' contracts on a case-by-case basis.
Link to the story:
https://www.straitstimes.com/singapore/transport/changi-jewel-shops-better-prepared-for-closure-compared-with-
last-year
Lendlease Global Reit proposes to raise stake in Jem to up to 31.8%
Lendlease Global Commercial Reit has proposed to raise its stake in Jem mall to up to 31.8 per
cent for a purchase consideration of between S$204.1 million and S$337.3 million, the manager
said.
The Reit's trustee has entered into sale-and-purchase agreements with various vendors to acquire
stakes in two private funds, Lendlease Jem Partners Fund Limited (LLJP) and Lendlease Asian
Retail Investment Fund 3 Limited (ARIF3). They own 25 per cent and 75 per cent of Jem,
respectively.
Lendlease Global Reit currently holds an indirect interest in Jem through its 5 per cent interest in
ARIF3, acquired in October 2020.
The acquisition is based on Jem’s agreed property value of about S$2.08 billion, at a discount of
around 0.4 per cent to S$2.09 billion - the higher of two independent valuations conducted on Jem
by the manager and trustee.
The property has a leasehold of 99 years that started on Sept 27, 2010, a gross floor area of about
1.2 million sq ft and a net lettable area of 892,148 sq ft.
Links to the story:
https://www.businesstimes.com.sg/companies-markets/lendlease-global-reit-proposes-to-raise-stake-in-jem-to-up-
to-318
https://www.straitstimes.com/business/companies-markets/lendlease-global-reit-proposes-to-raise-stake-in-jem-to-
up-to-318
Phoon Huat to open more stores this year; on the lookout for deals
Phoon Huat is set to open more stores in Singapore this year, as it crosses a new milestone of
US$100 million in revenue.
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Jun 11, 2021 / Issue 23
It is also on the lookout for opportunities to acquire, said Shuichi Sato, chief executive of the home-
grown baking supplies retailer, in an interview with The Business Times (BT) on the back of Phoon
Huat's acquisition of a majority stake in French goods retailer Le Petit Depot.
Phoon Huat currently has 19 retail stores locally and an online shopping site. It plans to open three
more stores this year, taking the tally to 22.
The company has plans to expand overseas as well. This year, Phoon Huat resumed talks with
potential partners about expanding into South-east Asian countries. The discussions had been put
on hold due to the Covid-19 pandemic.
Link to the story:
https://www.businesstimes.com.sg/sme/phoon-huat-to-open-more-stores-this-year-on-the-lookout-for-deals
New retailers sprouting in Singapore, but more shop spaces stand empty
Many brick-and-mortar shops are likely to remain unoccupied even if the overall number of
businesses in the sector continues to grow, with more retailers working from home and starting
their ventures online.
In Q1 2021, formations of business entities in the retail trade sector exceeded cessations by 1,043,
based on data from the Accounting and Corporate Regulatory Authority (Acra).
This is probably due to more budding retailers focusing on building their online platforms and
operating from home, as e-commerce gains popularity and consumers avoid crowded malls during
this coronavirus outbreak.
Link to the story:
https://www.businesstimes.com.sg/real-estate/new-retailers-sprouting-in-singapore-but-more-shop-spaces-stand-
empty
Government
Singapore to ease Covid-19 curbs from June 14 in two steps
Singapore will exit Phase 2 (Heightened Alert) as planned after June 13, but in a two-step
approach, with some activities such as dining-in only allowed from June 21 instead, and work-
from-home staying the default.
Meanwhile, vaccination - a key enabler of further re-opening - will be extended to citizens aged
12 to 39, who can reserve and book appointments from June 11.
From June 14, in the first step of moving to Phase 3 (Heightened Alert), social gatherings of up to
five will be allowed and households may have up to five visitors a day.
Attractions, cruises, museums, and public libraries may operate at 50 per cent of capacity, while
various types of events may have up to 250 attendees with pre-event testing.
Personal care and appearance services which require masks to be removed, such as facials and
saunas, will also be allowed to resume.
But activities assessed as higher-risk may only resume from June 21, assuming the situation stays
under control, the multi-ministry taskforce on Covid-19 said at a press conference on June 10.
These include dining in, wedding receptions, and indoor mask-off activities in gyms and fitness
studios. Jobs Support Scheme aid will be extended for affected sectors till June 20.
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www.huttonsgroup.comWeekly News Select
Jun 11, 2021 / Issue 23
With testing as another major prong of Singapore's approach, there will be mandatory "fast and
easy testing" for all staff in settings with unmasked patrons, including dine-in food and beverage
(F&B) outlets, personal care services requiring mask removal, and gyms.
The government will subsidise the first three months of this mandatory testing regime, with details
to come.
From June 16, antigen rapid test kits will also be available at retail pharmacies for the public to
self-test.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-to-ease-covid-19-curbs-from-june-14-in-two-
steps
https://www.straitstimes.com/singapore/spore-to-ease-covid-19-curbs-and-reopen-in-2-phases-from-june-14-
everything-you-need-to
https://www.straitstimes.com/singapore/work-from-home-to-remain-the-default-employers-urged-to-be-more-
flexible
Singapore to bar short-term visitors from Guangdong due to rising Covid-19
infections
Singapore will tighten its border control measures for travellers from Guangdong amid increasing
Covid-19 infections in the Chinese province, the Ministry of Health (MOH) announced.
From 11.59pm on June 5, Singapore citizens, permanent residents and long-term pass holders
entering Singapore who have a travel history to Guangdong within the last 21 days before
departure will have to take a Covid-19 Polymerase Chain Reaction (PCR) test on arrival.
They must also undergo a seven-day stay-home notice (SHN) at their place of residence, and go
for another PCR test before their SHN period is up.
Also, short-term travellers holding an Air Travel Pass with a travel history to Guangdong within
the last 21 days before departure for Singapore will not be allowed to enter the Republic, MOH
added.
All other travellers departing mainland China – excluding Guangdong province – in the last 21
days prior to travel, will continue to be required to undergo a PCR test upon arrival at the airport,
in lieu of their SHN.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-to-bar-short-term-visitors-from-guangdong-due-
to-rising-covid-19
https://www.straitstimes.com/singapore/health/singapore-to-bar-short-term-travellers-from-guangdong-as-covid-19-
cases-surge
Iras giving 0.5 month rent relief cash payout to 50,000-plus property tax accounts
Eligible tenants under some 50,000 property tax accounts of qualifying commercial properties are
expected to receive a half-month rental relief cash payout directly as part of the new rental support
scheme announced.
The scheme aims to help retailers and small and medium-sized enterprises (SMEs) tide over the
latest Covid-19 restrictions.
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
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www.huttonsgroup.comWeekly News Select
Jun 11, 2021 / Issue 23
The Inland Revenue Authority of Singapore (Iras) told The Straits Times that it "expects the
number of qualifying tenants and owner-occupiers to be similar to last year, where we disbursed
the cash grant to about 50,000 property tax accounts for qualifying commercial properties".
Link to the story:
https://www.straitstimes.com/business/economy/iras-giving-05-month-rent-relief-cash-payout-to-50000-plus-
property-tax-accounts
Enterprise Singapore advises firms to test employees regularly for Covid-19
Companies whose employees are not currently being tested regularly for Covid-19 should consider
implementing their own regular testing using alternative tests such as antigen rapid tests,
Enterprise Singapore (ESG) said.
In an updated guidance note on safe-management measures for companies, the statutory board said
this would apply especially to employees working in higher-risk settings, where there is a high
density of unmasked people in close proximity for long periods of time.
Companies are also advised to proactively manage potential contacts of Covid-19 cases at the
workplace, by asking staff who were in close contact with employees or visitors who tested
positive to self-isolate while contact tracing is carried out.
If three or more cases that are epidemiologically linked are found at the workplace, all high-risk
employees are to be tested before operations resume. These high-risk employees are recommended
to be placed on a seven-day RRT after reopening.
Links to the story:
https://www.businesstimes.com.sg/government-economy/enterprise-singapore-advises-firms-to-test-employees-
regularly-for-covid-19
https://www.straitstimes.com/singapore/firms-should-test-staff-regularly-for-covid-19-especially-those-working-in-
higher-risk
https://www.businesstimes.com.sg/government-economy/routine-testing-for-workplaces-could-temporarily-nudge-
up-wfh-adoption
https://www.businesstimes.com.sg/garage/suppliers-expect-diy-covid-test-kits-to-take-off-amid-heightened-demand-
for-mass-testing
https://www.businesstimes.com.sg/government-economy/businesses-welcome-regular-testing-but-are-concerned-
about-costs
https://www.straitstimes.com/singapore/health/staff-in-higher-risk-settings-with-unmasked-customers-to-undergo-
regular-covid-19
Singapore, Australia PMs agree to work towards an air-travel bubble between their
countries
Singapore and Australia will work towards an air-travel bubble and both nations will lay the
groundwork for resuming two-way travel in a safe and calibrated manner, said the prime ministers
of both countries on June 11.
They were speaking to reporters after Prime Minister Lee Hsien Loong met his Australian
counterpart Scott Morrison at the Istana for the sixth Australia-Singapore Annual Leaders'
Meeting.
This is the first official visit by a foreign leader to Singapore since the start of the Covid-19
pandemic, and Mr Morrison's second stop after New Zealand last month.
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Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-australia-pms-agree-to-work-towards-an-air-
travel-bubble-between-their
https://www.straitstimes.com/singapore/singapore-and-australia-pms-agree-to-work-towards-an-air-travel-bubble-
between-their
HK, Singapore to review travel bubble date in July
Hong Kong and Singapore will review in July plans to open a travel bubble, their governments
said on June 11, after the proposal was derailed for a second time in May due to a spike of
coronavirus cases in Singapore.
The Covid-19 situation in Singapore has stabilised in recent weeks, its government said in a
statement, noting that the number of community cases and local unlinked Covid-19 cases were
showing a downward trend. It also said the situation in Hong Kong remained stable.
Links to the story:
https://www.businesstimes.com.sg/government-economy/hk-singapore-to-review-travel-bubble-date-in-july
https://www.straitstimes.com/singapore/health/singapore-hong-kong-to-review-air-travel-bubble-in-early-july
Enhanced Jobs Support Scheme to continue for sectors allowed to reopen only from
June 21
With some sectors facing an additional week of closure up till June 20, the current enhancements
to the Jobs Support Scheme (JSS) will be extended for affected businesses such as food
establishments that cannot yet resume dining in.
Businesses that had to suspend many, if not all, of their operations because of the tightened
measures during phase two (heightened alert) were given JSS support of 50 per cent from May 16
to June 13. This will be extended till June 20, the Ministry of Health said on June 10.
The sectors affected include food establishments, gyms and sport facilities, performing arts
organisations and arts education centres.
They will get 10 per cent JSS support from June 21 to June 30, the ministry added.
Links to the story:
https://www.straitstimes.com/singapore/enhanced-job-support-scheme-to-continue-for-sectors-allowed-to-reopen-
only-from-june-21
https://www.straitstimes.com/singapore/40m-support-to-be-extended-to-private-hire-car-cabbies-over-next-three-
months
https://www.straitstimes.com/singapore/consumer/7000-market-stallholders-to-get-rental-waivers-to-cope-with-
decline-in-business
As Covid-19 becomes endemic, S'pore will shift focus from daily case numbers to their
clinical condition
As Covid-19 becomes endemic around the world, the focus in Singapore will shift away from how
many cases there are each day, and more to the clinical condition of these cases.
Finance Minister Lawrence Wong on June 10 said in such a scenario, "it's no longer about going
after each and every infected case".
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Jun 11, 2021 / Issue 23
He explained that even if a person were to be infected despite being vaccinated, the infection will
likely be very mild or even asymptomatic.
He added that Singapore is currently developing a strategy to deal with Covid-19 being endemic,
although it is still too early to paint a full picture of what this may look like.
However, he noted that there will likely be several components to life in this new normal.
First, high vaccination rates will be essential. This means not only getting people here vaccinated
with their first and second doses, said Mr Wong, but also probably taking booster shots in the
future.
Second, better medical treatments for Covid-19 may be available. If so, this will give the
authorities greater assurance that even if a breakthrough infection were to occur, or in the rare
occasion where there are serious illnesses, treatments are available and people can recover, said
Mr Wong.
Third, border restrictions will likely be eased, but more risk-based and targeted precautions will
need to be in place, taking into account the overall infection situation in other countries as well as
the vaccination status of travellers.
Link to the story:
https://www.straitstimes.com/singapore/health/as-covid-19-becomes-endemic-focus-will-shift-from-daily-covid-19-
case-numbers-to
Economy
Singapore retail sales jump 54% in April from last year's circuit-breaker low
Retail sales in Singapore rebounded in April, but the jump was largely inflated by comparison with
the low base a year ago, when the Republic entered its circuit breaker period and physical stores
were closed for most of the month.
Takings at the till continued to be below pre-pandemic levels, the Department of Statistics
(SingStat) said in its report on June 4, and analysts say the outlook for the rest of the year is clouded
by the likelihood of continued Covid-19 restrictions.
Retail sales surged by 54 per cent in April on a year-on-year basis, compared with a revised 6.3
per cent increase in March, according to SingStat data.
This made for a third straight month of retail sales growth after a 24-month-long year-on-year
slide.
Excluding motor vehicles, retail sales rose 39.2 per cent in April, compared with a 4.5 per cent
increase in March.
All segments registered jumps in turnover except for supermarkets, hypermarkets, minimarts and
convenience stores.
The estimated total retail sales value in April was $3.3 billion. Of this, online retail sales made up
an estimated 11.2 per cent.
Links to the story:
https://www.straitstimes.com/business/economy/spore-retail-sales-jump-54-in-april-from-circuit-breaker-low-still-
below-pre-covid
https://www.businesstimes.com.sg/government-economy/despite-boost-from-year-ago-low-base-retail-rebound-is-
still-on-shaky-ground
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Jun 11, 2021 / Issue 23
Higher freight costs pushing up food prices in Singapore
If your hawker takeaways cost 50 cents or a dollar more, it is because higher freight costs and
commodity prices are creeping into consumer food prices here. Some food-ingredient suppliers
have already noted a doubling in the cost of essential food ingredients such as oil.
According to the Department of Statistics' consumer price index (CPI), animal and vegetable oils,
for example jumped 24.2 per cent year-on-year in April. This was the second largest rise after
dairy products and bird's eggs, which went up 33.5 per cent over the same period.
Smaller food-ingredient suppliers have been hit harder than the major grocery chains. Food
product distributor FoodXervices, for instance, has reported at least a 100 per cent rise in the price
of cooking oil; other commodities such as sugar and salt have gone up relatively less - between 5
and 20 per cent.
Bigger market players, however, have not felt the heat. NTUC FairPrice, for example, said that the
prices of food ingredients have remained relatively stable, although it has noticed a 10 per cent
rise in cooking oil prices in the last three months.
Links to the story:
https://www.businesstimes.com.sg/consumer/higher-freight-costs-pushing-up-food-prices-in-singapore
https://www.straitstimes.com/world/europe/world-food-price-index-surges-in-may-to-highest-level-since-2011-fao
Too early to tell what G-7's historic tax deal would mean for Singapore: Lawrence
Wong
It is too early to say what the G-7's historic tax deal targeting tech giants would mean for Singapore,
Finance Minister Lawrence Wong said, although he noted that all jurisdictions will need to adjust
their tax systems and rules.
In a Facebook post, Mr Wong said: "The new rules should not inadvertently weaken the incentives
for businesses to invest and innovate. Otherwise, countries will all be worse off, fighting over our
share of a shrinking revenue pie."
Detailing three things that will not change in Singapore, he said the Republic will continue to
support a multilateral consensus-based solution that is anchored on sound economic principles,
promotes tax certainty and ensures a level playing field across all jurisdictions.
Secondly, the Ministry of Finance and Inland Revenue Authority of Singapore will make any
necessary changes to the country's corporate tax system, in close consultation with businesses and
tax professionals, as and when a global consensus is reached on the G-7's proposals.
Third, noting that Singapore's overall competitiveness has never been based on taxation alone, Mr
Wong said it is about ensuring a conducive environment for businesses and entrepreneurs to thrive.
Links to the story:
https://www.businesstimes.com.sg/government-economy/too-early-to-tell-what-g-7s-historic-tax-deal-would-mean-
for-singapore-lawrence
https://www.straitstimes.com/business/economy/too-early-to-say-how-global-corporate-tax-rule-changes-will-
impact-singapore
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www.huttonsgroup.comWeekly News Select
Jun 11, 2021 / Issue 23
G-7's global minimum tax deal may nullify any tax advantage Singapore offers
The historic tax agreement by the Group of Seven (G-7) could nullify any tax advantage Singapore
offers to multinational corporations (MNCs), leaving a question mark over how this will affect
their investment decisions to continue to operate here, tax experts say.
But countries with large domestic markets such as Indonesia may benefit from the global tax deal
given that MNCs will have to pay a larger proportion of their taxes to countries where sales are
generated.
Finance leaders from the G-7 countries agreed to back a new global minimum tax rate of at least
15 per cent that companies would have to pay regardless of where they locate their headquarters.
The agreement would also impose an additional tax on some of the largest MNCs, potentially
forcing technology giants such as Amazon, Facebook and Google, as well as other big global
businesses, to pay taxes to countries based on where their goods or services are sold, regardless of
whether they have a physical presence in that jurisdiction.
While Singapore's corporate tax rate is 17 per cent, which is slightly higher than the 15 per cent
global minimum rate, the effective tax rates of many businesses here may fall below 15 per cent
due to tax incentives and factors such as not taxing unremitted overseas income and capital gains.
Many MNCS, which are based here and serve the region, book their revenues in their Singapore
office in part because of the lower tax rates. These MNCs are incentivised and taxed at rates that
are possibly as low as 10 per cent.
Another proposal which involves the reallocation of at least 20 per cent of large MNEs' profits
exceeding 10 per cent margin for taxation in market jurisdictions could also have implications.
The endorsement from the G-7 could help build momentum for a deal in wider talks among more
than 140 countries being held in Paris as well as a Group of 20 (G-20) finance ministers meeting
in Venice in July.
However, tax experts say there is still much work to be done, and garnering wider support may be
a challenge given that countries are at different stages of economic development and face varied
challenges.
Crucial details are still missing. These include the size of the MNCs that will be affected, how to
share the spoils, and the timing for rolling out these rules.
A key and critical unknown at this time is which sectors will be excluded from these rules. There
has been much speculation on whether financial services, real estate, international transportation
and infrastructure will be excluded. Extractive industries may also be excluded.
Links to the story:
https://www.businesstimes.com.sg/government-economy/g-7s-global-minimum-tax-deal-may-nullify-any-tax-
advantage-singapore-offers
https://www.businesstimes.com.sg/government-economy/implementation-of-g-7-agenda-challenging
https://www.straitstimes.com/world/europe/g7-finance-ministers-agree-global-minimum-tax-of-at-least-15
https://www.straitstimes.com/world/europe/global-tax-plan-what-is-it-about
https://www.businesstimes.com.sg/government-economy/g-7-corporate-tax-plan-could-net-singapore-more-revenue-
in-short-run-0
Fewer teens working part-time last year in S'pore amid pandemic: Survey
The number of young workers here fell last year amid the Covid-19 pandemic.
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Figures from the Manpower Ministry's Comprehensive Labour Force Survey in 2020 show the
number of 15- to 19-year-olds working dipped that year to 26,300, from 32,600 in 2019.
Human resources experts and recruitment agencies told The Sunday Times the Covid-19 pandemic
and subsequent restrictions likely played a key factor in the decline, especially as the pool of usual
part-time jobs available, such as banquet servers, salesmen for large exhibitions and food and
beverage outlet service staff, shrank.
However, other jobs such as temperature screeners and grocery store assistants remain viable.
MOM data showed that of the 26,300 15- to 19-year-olds who were working last year, most worked
in services rather than manufacturing and construction.
A total of 13,100 worked in public administration and education, while 3,900 worked in
accommodation and food services. Another 1,100 worked in transportation and storage.
Link to the story:
https://www.straitstimes.com/singapore/jobs/fewer-teens-working-part-time-last-year-in-spore-amid-pandemic-
survey
Singapore's growth to stabilise in H2, full-year growth may beat official forecast:
OCBC
Despite the growth speed bump presented by tightened Covid-19 measures from May to June, the
momentum of Singapore's growth should stabilise in the second half of the year, OCBC head of
treasury research and strategy Selena Ling said in the bank's global outlook report for the second
half of 2021.
Ms Ling expects full-year growth to still come in at 6 per cent year-on-year or slightly higher,
above the government's official forecast of 4-6 per cent - which is set to be reviewed in August.
The floor to OCBC's forecast is 5.5 per cent, even after factoring in the setback of Phase 2
Heightened Alert measures.
Link to the story:
https://www.businesstimes.com.sg/government-economy/singapores-growth-to-stabilise-in-h2-full-year-growth-
may-beat-official-forecast
Pandemic heightens Singapore workers' anxiety about future: survey
Singapore’s workers have a much bleaker view of their future than many others around the world,
said a PwC survey out - a finding which the professional services firm ascribed to the disruption
wrought by the global pandemic.
Many in Singapore are, however, keen to embrace the challenges and opportunities ahead, though
a significant number feel discriminated against and that they do not have equal access to such
opportunities.
PwC's survey covered 32,517 people around the world, including workers, business owners,
contract workers, students, and people who were unemployed or laid off. It polled workers in 19
countries: Australia, Canada, China, France, Germany, India, Japan, Kuwait, Malaysia, the
Netherlands, Poland, Qatar, Saudi Arabia, Singapore, South Africa, Spain, the United Arab
Emirates, the United Kingdom, and the United States.
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Half of the 2,000 respondents surveyed in Singapore said they believe their jobs would be obsolete
within five years, compared to 39 per cent globally. Some 63 per cent, compared to 48 per cent
globally, believe that traditional employment will not be around in the future, and that workers
will have to sell their skills on a short-term basis to those who need them.
The effects have not all been negative, however. The bulk of Singapore workers seem to have
made the best of their situation to prepare themselves for the trends they foresee happening; and a
greater proportion of Singapore workers, when compared to the global average, are more enthused
about embracing the challenges and opportunities of the future.
PwC's survey found that 51 per cent of Singapore workers believe their digital skills have improved
through the prolonged period of lockdown, and these say they will continue to embrace training
and skill development; this is compared to 40 per cent globally.
Link to the story:
https://www.businesstimes.com.sg/companies-markets/pandemic-heightens-singapore-workers-anxiety-about-
future-survey
Hospitality
Cost of pre-event testing a concern: live event organisers
The introduction of extensive testing may mean that large-scale events like concerts and theatre
can potentially resume, but "live" event organisers remain concerned over the cost of pre-event
testing and the higher ticket prices it might mean for consumers.
Live event organisers say they are aware of the pent-up demand for big scale shows.
As the world's population gets vaccinated, "live" events are beginning to make a comeback around
the world. Bands like rock veterans Guns N' Roses are set to tour America again in the fall, while
Broadway will play to full capacity from September. In the UK, home fans were allowed back into
stadiums for the first time this season to watch their team play the final match in the English
Premier League.
Those hoping to see the same take place in Singapore can take heart that promoters, organisers and
venue owners alike are working hard to make it a reality.
Link to the story:
https://www.businesstimes.com.sg/government-economy/cost-of-pre-event-testing-a-concern-live-event-organisers
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www.huttonsgroup.comWeekly News Select
Jun 11, 2021 / Issue 23
Contact:
Lee Sze Teck
Head, Research
(65) 6500 6510
szetecklee@huttonsgroup.com
This document has been prepared by Huttons Asia for general information only. Huttons Asia does not guarantee warrant or represent that the
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