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Weekly News Select
                                                                                                 Apr 9, 2021 / Issue 14

Top News for the Week
       •   Analysts flag higher odds of cooling measures as Singapore private home prices rise
           for fourth straight quarter
       •   Taiwanese family wants them all in S$293m Draycott deal
       •   HDB Q1 resale prices up 8% yoy, with 53 million-dollar flats sold
       •   Cash over valuation back in the spotlight as rising property demand drives resale
           prices up
       •   Setback for leadership succession as DPM Heng steps aside
       •   Vaccination bookings to begin in June for those under 45: Janil Puthucheary
       •   S$370m in excess JSS payouts wrongly credited to 5,400 businesses last Oct
       •   Singapore unemployment rates fall for fourth straight month in February
       •   Circuit-breaker low base and return to office work to spur Singapore retail rebound
       •   Singapore PMI climbs to 50.8 in March, highest since March 2019
       •   Restrictive terms, poor outcomes hobble voucher scheme for tourism sector

Residential
Analysts flag higher odds of cooling measures as Singapore private home prices rise
for fourth straight quarter
The odds of a fresh round of cooling measures have been dialled up a notch, with private home
prices in Singapore in Q1 rising for a fourth straight quarter.
Singapore private home prices rose 2.9 per cent in Q1 from the previous quarter, according to latest
flash estimates from the Urban Redevelopment Authority (URA). The price rise comes after a 2.1
per cent increase in Q4 last year.
This is also the sharpest quarterly increase since the second quarter of 2018 when private
residential prices rose by 3.4 per cent before property curbs hit in July that year.
Analysts said a stronger price surge could be captured when full figures for March are in. For now,
the flash estimate is compiled based on transaction prices given in contracts submitted for stamp
duty payment, and data on units sold by developers up to mid-March. URA will release its full set
of real estate statistics for Q1 on April 23.
Lee Sze Teck, director of research at Huttons Asia, said chances of cooling measures have been
"raised by a notch" as the government looks to keep prices in check.
"First-time home buyers are likely to be unaffected as past measures have targeted investors and
foreign buyers. Wealth taxes in the form of ABSD (Additional Buyer's Stamp Duty) may take
centre stage and Singapore will be one of the first few countries in the region to tax the rich," he
said.
"Another possible measure is the tightening of TDSR (Total Debt Servicing Ratio) for investors
and foreign buyers while keeping it unchanged for first time home buyers."
ABSD is additional tax levied on top of Buyer's Stamp Duty, a tax that property buyers fork out
for a property. TDSR caps the amount borrowers can spend on debt repayments to 60 per cent of
their gross monthly income.

              Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
             3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                            www.huttonsgroup.com

Weekly News Select
Apr 9, 2021 / Issue 14

Mr Lee said the final tally for the private residential market could possibly see a higher price
increase when figures for March are in. These would include transactions for the launch at
Midtown Modern. About 340 units or 61 per cent of GuocoLand's 558-unit Midtown Modern
condominium in Bugis were sold during its launch weekend. The majority of the units moved
during the launch weekend were one-bedders and two-bedders.
Meanwhile, the 20-unit luxury development Eden was fully sold this month at an average price of
S$4,827 per square foot (psf). The project by Swire Properties involves 20 four-bedroom units of
over 3,000 sq ft, each of them occupying an entire floor.

Links to the story:
https://www.businesstimes.com.sg/real-estate/analysts-flag-higher-odds-of-cooling-measures-as-singapore-private-
home-prices-rise-for
https://www.straitstimes.com/business/property/singapore-private-home-prices-jump-29-in-q1-stoking-cooling-
measures-talk

URA extends Jalan Anak Bukit site's tender deadline to June 29
The tender for the commercial and residential site along Jalan Anak Bukit, near Beauty World
MRT station, will now close on June 29, 2021.
This is due to a new requirement for a centralised cooling system to serve the future mixed-use
integrated transport hub, a spokesperson for the Urban Redevelopment Authority (URA) said in
response to The Business Times' (BT) queries.
The tender deadline for the 3.22 hectare land parcel was initially on March 30, 2021. It can
potentially yield about 845 private homes, and the maximum gross floor area is about 1.04 million
square feet.
Huttons Asia director of research Lee Sze Teck earlier noted that the dual-envelope tender system
will limit participation to larger and highly experienced developers or consortiums that have
developed such sites before. Huttons' Mr Lee meanwhile expected three to five submissions,
possibly with a top bid of S$1,000-1,080 psf ppr.

Link to the story:
https://www.businesstimes.com.sg/real-estate/ura-extends-jalan-anak-bukit-sites-tender-deadline-to-june-29

Taiwanese family wants them all in S$293m Draycott deal
The Tsai family of Taiwan behind snack food giant Want Want China Holdings is the party that
has bought all 20 units at the completed freehold luxe development, Eden, at 2 Draycott Park.
The S$293 million transaction involves three tranches, The Business Times (BT) understands.
The Hong Kong-listed group's chairman, Tsai Eng-Meng, is purchasing one apartment.
His son Shao Chung, who is also an executive director of the company, is picking up 18 units in
one deal, as well as the remaining unit in a separate transaction. He is a Singapore permanent
resident, aged about 40; he attended the Canadian International School in Singapore.

Link to the story:
https://www.businesstimes.com.sg/real-estate/taiwanese-family-wants-them-all-in-s293m-draycott-deal

Weekly News Select
Apr 9, 2021 / Issue 14

Maxwell House reserve price lowered to S$268m in second bid at collective sale
Maxwell House is up for collective sale via a second public tender at a lower reserve price of
S$268 million, from S$295 million in the first launch.
Located at 20 Maxwell Road, the 13-storey commercial building sits on a trapezoidal island plot
spanning 41,799 sq ft, with views from all four sides of the building.
Maxwell House, built in 1971, sits on a plot with a 99-year leasehold tenure starting from 1969.
The site is zoned for commercial use with a plot ratio of 4.3 under the Urban Redevelopment
Authority's (URA) Master Plan 2019.
URA had, in advice given on Sept 30, 2020, stated that it will support a mixed-use commercial
and residential development with a plot ratio of 5.6 and a gross floor area (GFA) of around 234,077
sq ft.
Subject to rezoning, this will result in an uplift of the plot ratio by some 30 per cent.
Assuming 80 per cent of total GFA is for residential use and the remaining 20 per cent GFA is for
commercial use, the blended land rate translates to around S$1,565 per square foot per plot ratio.
This is after factoring in a 7 per cent bonus balcony plot ratio for the residential component, plus
the differential premium and estimated lease upgrading premium for the site.
Moreover, the allowable building height has been raised to 75 metres above mean sea level, or
about 21 storeys high for the tower block.

Links to the story:
https://www.businesstimes.com.sg/real-estate/maxwell-house-reserve-price-lowered-to-s268m-in-second-bid-at-
collective-sale
https://www.straitstimes.com/business/property/maxwell-house-takes-2nd-stab-at-en-bloc-sale-with-lower-reserve-
price-of-268m

HDB Q1 resale prices up 8% yoy, with 53 million-dollar flats sold
Housing Board resale prices rose for a fourth consecutive quarter, climbing 2.8 per cent in the first
three months of this year over the previous quarter, according to HDB flash estimates.
Year on year, resale prices were up by 8 per cent.
Fifty-three resale flats have changed hands for at least S$1 million in the first quarter, the highest
quarterly sales of million-dollar flats on record, or since 1990. This number has already surpassed
the total number of million-dollar flats transacted in the years before 2018.

Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-q1-resale-prices-up-8-yoy-with-53-million-dollar-flats-sold
https://www.straitstimes.com/singapore/housing/hdb-resale-prices-rise-28-in-q1-flash-data

Cash over valuation back in the spotlight as rising property demand drives resale
prices up
With the recent unexpected recovery of the property market during the Covid-19 pandemic, COV
has begun making a comeback — after staying suppressed for years — due to the pent-up demand
for homes.

Weekly News Select
Apr 9, 2021 / Issue 14

Anecdotally, property experts told TODAY that recent COV figures typically range between
S$10,000 and S$50,000. However, it is not unheard of for someone to pay between S$100,000 and
S$200,000 for choice flats.
Mr Lee Sze Teck, head of research at realty Huttons Singapore, said that with more buyers flooding
the market in the past year, each property listing has attracted multiple bids, thus driving up resale
prices.
“COVs went up as well, and it takes valuations some time to catch up,” said Mr Lee.
Analysts believe that some buyers are resisting paying the COV.
Hutton’s Mr Lee said that although prices rose, the volume for resale flats that exchanged hands
in the most recent quarter appears to have moderated.
In February this year, there were 13.4 per cent fewer resale HDB transactions than in January,
according to property portal SRX. This shows that there has been some “buyer resistance” to
paying the COV.
“People may be looking at their purchases realistically and asking why they should be paying
more, above valuation,” said Mr Lee.

Link to the story:
https://www.todayonline.com/singapore/cash-over-valuation-back-spotlight-rising-property-demand-drives-resale-
prices

85% of BTO projects face delays of 6 to 9 months; 43,000 households affected
About 43,000 households will get the keys to their Build-To-Order (BTO) flats late owing to
construction delays that are due to manpower shortages and supply chain disruptions.
Of the 89 ongoing BTO projects, about 85 per cent are around six to nine months behind schedule,
said the Ministry of National Development (MND) in a written parliamentary reply on April 5.
Of the 43,000 affected households as at the end of February, the Housing Board has assisted around
240 households with interim rental housing flats.

Link to the story:
https://www.straitstimes.com/singapore/housing/85-of-all-ongoing-bto-projects-delayed-43000-households-affected

HDB resale prices rise for 9th straight month in March
Delays in Build-to-Order (BTO) flats, rising private property prices and improving market
sentiment drove demand in the Housing Board resale market, sending prices climbing for the ninth
straight month.
Resale prices rose 0.8 per cent in March from the month before, according to flash data from a real
estate portal.
Year on year, resale prices were up 9.5 per cent from March 2020. They are closing in on their all-
time highs, with March prices 4.9 per cent lower than their peak in April 2013.

Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-rise-for-9th-straight-month-in-march-0
https://www.straitstimes.com/business/property/hdb-resale-prices-rise-for-9th-straight-month-in-march-with-cash-
over-valuation

Weekly News Select
Apr 9, 2021 / Issue 14

Commercial
Grade A offices could lead recovery in Singapore office market: report
Grade A offices could lead the recovery of Singapore's office market in 2021, said a report. This
comes amid announcements that work-from-home arrangement no longer remains the default
arrangement in Singapore.
More flight to quality movements were tracked due to occupiers focusing on higher quality
products within the central business district (CBD), said the report. This gave rise to a two-tier
market comprising: Grade A (core CBD market) and Grade B (islandwide market). The Grade A
market showed resilience with tightening vacancy while the Grade B market continued to grapple
with higher vacancy rates.
Additionally, the report also mentioned that the office market registered a positive net absorption
of 130,000 sq ft in the first quarter of 2021. This comes after three consecutive quarters of negative
net absorption.

Link to the story:
https://www.businesstimes.com.sg/real-estate/grade-a-offices-could-lead-recovery-in-singapore-office-market-report

Will office assets continue to pique investor interest?
The slump in office prices in the Central Area outpaced the decline in rents last year, likely due to
the pandemic-linked uncertainties plaguing the office market.
While prices and rents for offices have moved in the same direction over the past two decades,
rents have typically proven to be more sensitive to market shocks.
For starters, the ongoing pandemic makes it tough for firms to determine their space requirements
as they may be struggling to ascertain demand for their goods and services in the future.
The shift towards flexible work arrangements may also prompt companies to cut their physical
footprint, as they can turn to co-working spaces later to scale up their size in line with their needs.
On the other hand, there could be "much upside" if most countries are successful with their
vaccination programmes and attain herd immunity.
It also remains to be seen how rents will be affected by incoming supply.

Link to the story:
https://www.businesstimes.com.sg/real-estate/will-office-assets-continue-to-pique-investor-interest

Retail
Troubled SuperPark Singapore to reopen at Suntec under new management
SuperPark Singapore, an indoor playground at Suntec City that closed last year amid financial
troubles, will reopen on April 9 under a new operator.
The new operator of the 40,000-sq ft space is DreamUs, which was established in 2014 and
operates Pororo Park Singapore in Marina Square and Tayo Station in Downtown East. It also
distributes Pororo and Tayo toy merchandise.

Weekly News Select
                                                                                                   Apr 9, 2021 / Issue 14

Links to the story:
https://www.businesstimes.com.sg/consumer/troubled-superpark-singapore-to-reopen-at-suntec-under-new-
management
https://www.straitstimes.com/singapore/parenting-education/kids-activity-park-superpark-singapore-to-reopen-on-
april-9

Lazada pop-up store at Raffles City takes over space formerly occupied by Robinsons
The space formerly occupied by Robinsons on the third level of Raffles City Shopping Centre has
now been taken over by online retailer Lazada.
Over the next two weeks, Lazada will be showcasing home furnishings and smart home products
at its 10,000 sq ft pop-up store.
It is the latest online retailer to go physical, albeit for a short period of time. This is a move experts
say can attract more shoppers to malls and offer more choices to consumers.

Link to the story:
https://www.straitstimes.com/singapore/consumer/lazada-pop-up-store-at-raffles-city-takes-over-space-formerly-
occupied-by

Government
Setback for leadership succession as DPM Heng steps aside
Singapore’s leadership succession plans suffered a setback as Deputy Prime Minister Heng Swee
Keat announced that he is taking himself out of the running to become the Republic's next prime
minister.
Citing age and health as reasons, Mr Heng, who turns 60 this year, told a press conference at the
Istana that he would have "too short a runway" to lead the country beyond the Covid-19 crisis
should he take on the top job.
Prime Minister Lee, who was also at the press conference, said he accepted Mr Heng's decision,
describing it as a "selfless decision" that was made with the best interests of Singapore in mind.
Mr Heng will also relinquish his finance portfolio in a Cabinet reshuffle set to take place in two
weeks, but he will continue as DPM and Coordinating Minister for Economic Policies, Mr Lee
said.

Links to the story:
https://www.businesstimes.com.sg/government-economy/setback-for-leadership-succession-as-dpm-heng-steps-
aside
https://www.businesstimes.com.sg/government-economy/investors-unlikely-to-be-rattled-by-dpm-hengs-decision
https://www.straitstimes.com/singapore/heng-swee-keat-steps-aside-what-lies-ahead-for-paps-4g-in-electing-its-
new-leader-and-team
https://www.straitstimes.com/singapore/same-leadership-team-remains-in-place-to-deal-with-foreign-countries-
investors-pm-lee-chan
https://www.straitstimes.com/singapore/politics/cabinet-reshuffle-to-be-announced-in-two-weeks-dpm-heng-to-
give-up-finance
https://www.straitstimes.com/singapore/politics/4g-leaders-should-be-given-chance-to-relook-succession-plan-
holistically-says

                Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
               3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                              www.huttonsgroup.com

Weekly News Select
                                                                                                  Apr 9, 2021 / Issue 14

Foreign worker levies for S Pass, work permit holders to be waived for SHN period
The Ministry of Manpower (MOM) will waive foreign worker levies for all S Pass and work permit
holders, including migrant domestic workers, for the duration of their stay-home notice (SHN)
from January to September this year.
According to MOM, the change is to help employers manage the increased costs associated with
the government's updated Covid-19 measures. Since January this year, MOM has limited entry
approvals for work pass holders and required all work permit holders to undergo on-arrival testing
and serve an SHN to reduce risk of importation of Covid-19 to the community.
MOM said for employers who have already paid the levy for their workers for the duration of SHN
in January and February, the waivers will be effected as an adjustment and used to offset June's
levy, which is payable in July.

Links to the story:
https://www.businesstimes.com.sg/government-economy/foreign-worker-levies-for-s-pass-work-permit-holders-to-
be-waived-for-shn-period
https://www.straitstimes.com/singapore/foreign-worker-levies-for-s-pass-and-work-permit-holders-to-be-waived-
for-shn-period-mom

Vaccination bookings to begin in June for those under 45: Janil Puthucheary
Singapore residents under the age of 45 are likely be invited from June to book their Covid-19
vaccinations, said Senior Minister of State for Health Janil Puthucheary.
This is in line with the previously announced schedule to complete the national vaccination
programme by the end of the year. The number of vaccination centres will be further expanded to
40, up from 31 today, he said.
As at April 3, about 1.52 million Covid-19 vaccine doses have been administered, he said in
Parliament.
Around 1.05 million people have received at least one dose of the vaccine, of which more than
468,000 have received their second dose and completed the full vaccination regimen.

Link to the story:
https://www.businesstimes.com.sg/government-economy/vaccination-bookings-to-begin-in-june-for-those-under-
45-janil-puthucheary-0

'Debt holiday' loans a fifth of total approved under programme: MAS
Loans on "debt holiday" made up about a fifth of those approved under an industrywide relief
programme as at the end of February.
The loans amounted to more than $3.8 billion in loan principal, said the Monetary Authority of
Singapore (MAS).
The Extended Support Scheme - Standardised (ESS-S) allows businesses in sectors hit hardest by
the pandemic to defer 80 per cent of principal payments on their secured loans granted by banks
or finance companies, as well as loans granted under Enterprise Singapore's Enhanced Working
Capital Loan Scheme and Temporary Bridging Loan Programme, until June 30.
The extended support measures expire later for individuals.

               Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
              3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                             www.huttonsgroup.com

Weekly News Select
                                                                                                   Apr 9, 2021 / Issue 14

About 1.5 per cent of property loans for individuals were under extended relief measures as at the
end of February, amounting to more than $3.1 billion.
MAS said both businesses and individuals can apply for specific assistance from their lenders even
after the industrywide relief schemes end.

Link to the story:
https://www.straitstimes.com/business/debt-holiday-loans-a-fifth-of-total-approved-under-programme-mas

Cash surpluses are not a valid reason to defer GST increase: Indranee
The government's cash surpluses do not reduce the need for the planned increase in goods and
services tax (GST), said Second Minister for Finance Indranee Rajah in Parliament.
Ms Indranee took issue with a recent social media post by the Workers' Party (WP), which
questioned the need to increase GST while citing Singapore's annual average of S$29 billion in
cash surpluses from 2011 to 2019. She called this "inaccurate and misleading".
Ms Indranee took the floor to address a parliamentary question filed by Member of Parliament
Liang Eng Hwa (Bukit Panjang) on the matter. She stressed that not all cash receipts, which
generate cash surpluses or deficits every year, constitute revenues available for government
spending.
“For government budgeting, land sales proceeds are not considered part of our revenue, and cannot
be directly used for expenditure," said Ms Indranee. "Instead they are invested, and part of the
investment income is used to support the spending needs of Singaporeans via the Net Investment
Returns Contribution (NIRC)."

Links to the story:
https://www.businesstimes.com.sg/government-economy/cash-surpluses-are-not-a-valid-reason-to-defer-gst-
increase-indranee
https://www.straitstimes.com/singapore/politics/workers-party-post-arguing-against-gst-hike-is-inaccurate-and-
misleading-indranee

All 23 ITMs to be refreshed by end-2022: Heng Swee Keat
Each of the 23 Industry Transformation Maps (ITMs) will be refreshed to meet the accelerated
changes brought about by Covid-19, said Deputy Prime Minister Heng Swee Keat.
He added that the aim is to complete the update of the ITMs' sectoral strategies by the end of next
year.
Mr Heng said the refresh of the ITMs will be complemented by the work of the Emerging Stronger
Taskforce and its Singapore Together Alliances for Action (AfAs), which he said had served as
"pathfinders" to help Singapore seize immediate opportunities even amid Covid-19. He also
affirmed the continued importance of tripartite partnerships.

Links to the story:
https://www.businesstimes.com.sg/government-economy/all-23-itms-to-be-refreshed-by-end-2022-heng-swee-keat
https://www.straitstimes.com/singapore/politics/review-of-growth-strategy-for-23-sectors-to-be-completed-by-next-
year-says-dpm

                Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
               3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                              www.huttonsgroup.com

Weekly News Select
                                                                                                   Apr 9, 2021 / Issue 14

Work on 4 MRT stations serving NTU, Jurong industrial area to start by June,
contracts worth $526m awarded
Construction of four more Jurong Region Line (JRL) MRT stations that will serve Nanyang
Technological University (NTU) and the Jurong Town Corporation industrial area is set to begin
this quarter.
The Land Transport Authority (LTA) awarded two civil contracts valued at $263 million each for
this on Tuesday (April 6). The contracts are for the design and construction of the four stations
and associated viaducts.
The stations are part of the JRL’s third phase, which is expected to be completed in 2029.

Link to the story:
https://www.straitstimes.com/singapore/civil-contracts-worth-526m-awarded-to-build-4-mrt-stations-serving-ntu-
jurong-industrial

S$370m in excess JSS payouts wrongly credited to 5,400 businesses last Oct
Processing errors caused S$370 million in excess Jobs Support Scheme (JSS) payouts to be
credited to 5,400 businesses last October, the Ministry of Trade and Industry (MTI), Ministry of
Finance (MOF), and Ministry of Manpower (MOM) said in a joint media statement.
Such errors also resulted in S$1.2 million in excess foreign worker levy waivers and rebates being
granted to 360 businesses in June and July.
Incorrect reopening dates - which affected the level of support firms were meant to receive - had
been assigned to the affected businesses within the government's database.
These were mostly firms involved in construction, marine, and process (CMP) projects, but not
part of that sector. In response to queries, MTI said these included "manufacturing and service
firms supporting construction projects", and clients of construction projects, such as banks.

Links to the story:
https://www.businesstimes.com.sg/government-economy/s370m-in-excess-jss-payouts-wrongly-credited-to-5400-
businesses-last-oct
https://www.businesstimes.com.sg/sme/businesses-unfazed-by-jobs-support-scheme-error-say-situation-
understandable
https://www.straitstimes.com/singapore/politics/370-million-in-wage-support-wrongly-paid-out-to-companies-
government-to-recover
https://www.straitstimes.com/business/excess-jobs-support-scheme-payouts-to-be-recovered-by-govt-through-
deductions-cash-payments

Economy
Singapore unemployment rates fall for fourth straight month in February
Singapore’s unemployment rates fell for the fourth straight month in February, though Manpower
Minister Josephine Teo cautioned that further declines would become harder to achieve.
The overall unemployment rate fell to 3 per cent, from 3.2 per cent in January. Resident
unemployment declined to 4.1 per cent from 4.3 per cent previously, while citizen unemployment
declined to 4.3 per cent, from 4.5 per cent before.

                Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
               3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
                                              www.huttonsgroup.com

Weekly News Select
                                                                                                   Apr 9, 2021 / Issue 14

In February, 96,800 residents were unemployed, of whom 85,900 were citizens. This is down from
101,900 unemployed residents in January, including 89,300 citizens.
Further declines in unemployment will depend on whether hiring demand is sustained and
employers are willing "to look beyond candidates with familiar profiles", she said. "The remaining
jobseekers too may need to consider job roles or sectors they previously did not, and be willing to
invest time to reskill."

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-unemployment-rates-fall-for-fourth-straight-
month-in-february
https://www.straitstimes.com/singapore/jobs/unemployment-rates-in-singapore-decline-for-fourth-straight-month-
in-february

Circuit-breaker low base and return to office work to spur Singapore retail rebound
Retail sales were back in the black in February, on consumer cheer from the Chinese New Year
festive season, Department of Statistics (SingStat) data showed.
Singapore retail is now on track to return to full-year growth in 2021, after posting annual declines
since 2018. In the wake of the month's momentum, industry observers pointed to both the low base
in the coming months, and relaxation of Covid-19 controls, as drivers for the sector.
Retail sales grew by 5.2 per cent year on year in February, against a decline of 6.1 per cent in
January. Overall sales volume came to S$3.3 billion, with 10.1 per cent from online sales.
Excluding motor vehicles, retail sales grew by 7.7 per cent year on year, as auto sales shed 9.1 per
cent.

Links to the story:
https://www.businesstimes.com.sg/government-economy/circuit-breaker-low-base-and-return-to-office-work-to-
spur-singapore-retail
https://www.straitstimes.com/business/economy/spore-retail-sales-rise-for-1st-time-in-two-years-up-52-in-february-
with-cny-boost

Singapore PMI climbs to 50.8 in March, highest since March 2019
The manufacturing sentiment in Singapore continued to improve in March and recorded a faster
rate of expansion at 50.8, up 0.3 points from February, according to the Singapore Institute of
Purchasing and Materials Management (SIPMM) release on the Purchasing Managers' Index
(PMI).
This marks the ninth month of expansion for the overall manufacturing sector, and is the highest
since March 2019. A PMI of above 50 indicates expansion from the previous month, while a
reading below 50 implies contraction.
The indices of new orders, new exports, inventory, and employment saw higher expansion rates
while the factory output index saw slower expansion, SIPMM said.

Links to the story:
https://www.businesstimes.com.sg/real-estate/s1288m-sale-of-nassim-road-bungalow-sets-record-transaction-price-
of-s4005-psf
https://www.straitstimes.com/business/economy/singapore-factory-activity-growth-quickens-in-march-suez-canal-
blockage-mars

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MAS tipped to wait for 2022 to normalise monetary policy
The Monetary Authority of Singapore (MAS) will probably wait until next year to normalise its
currency settings, economists have told The Business Times - although they have not ruled out a
tightening in October.
The consensus is for the central bank to retain its neutral Singapore dollar nominal effective
exchange rate (S$NEER) stance at this month's half-yearly policy meeting, even as core inflation
inched into positive territory in February after a year underwater.
Such a decision would leave the policy band of the S$NEER at a flat or "zero" slope of
appreciation, with the mid-point of the band at the slightly lower level set in end-March last year.

Links to the story:
https://www.businesstimes.com.sg/government-economy/mas-tipped-to-wait-for-2022-to-normalise-monetary-
policy
https://www.straitstimes.com/business/economy/singapore-economic-contraction-seen-easing-in-q1-mas-on-hold-
reuters-poll

Mitsubishi sets up Asia hub in Singapore for local transportation systems
Mitsubishi Heavy Industries Engineering (MHIENG), a group company of Japan's Mitsubishi
Heavy Industries (MHI), has set up a technical service centre in Singapore to strengthen operation,
maintenance and after-sales servicing operations for its transportation system products in Asia.
This new centre will be the regional hub for Yokohama-based MHI's transportation service
operations in Asia.
It is a one-stop service centre manned by transportation system experts who will cater to customers'
enquiries and requests post-delivery, and propose new services in line with customer needs.
The hub is also intended to introduce new services, such as failure prevention and diagnosis, as
well as remote monitoring incorporating digital and AI (artiticial intelligence) technologies.

Link to the story:
https://www.businesstimes.com.sg/transport/mitsubishi-sets-up-asia-hub-in-singapore-for-local-transportation-
systems

Efforts taken to ramp up manpower supply for construction sector
There have been about 1,100 notifications for relief for construction and supply contracts as of
March 19 of which about 180, or about 10 per cent, eventually applied for assessor's determination.
Speaking in Parliament, Minister of State for National Development Tan Kiat How stressed that
the relief provided by the law provides a "framework for conversations to happen" and that the
government does not take intervention into private contracts lightly.
Mr Tan also addressed questions raised by Members of Parliament on how the government is
helping the sector deal with the immediate challenge of manpower shortages.
Mr Tan said the ministry is in active discussion with industry players, including the Singapore
Contractors Association Ltd (SCAL) to enable and establish better upstream processes.

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He also added that efforts are being undertaken to retain experienced workers. These efforts
include SCAL's Construction Manpower Exchange, a platform for companies to hire workers
already in Singapore.

Links to the story:
https://www.businesstimes.com.sg/government-economy/efforts-taken-to-ramp-up-manpower-supply-for-
construction-sector
https://www.straitstimes.com/singapore/politics/parliament-relief-period-for-options-to-purchase-sp-agreements-
extended

US push for minimum corporate tax globally may impact investment hubs
The United States' proposed global minimum corporate tax rate would hit investment hubs around
the world including Singapore, Hong Kong and Switzerland - if it comes to pass.
But broad international support for the concept - as the Organization for Economic Cooperation
and Development (OECD) is trying to achieve - does not imply acceptance of the US' specific
proposal of a 21 per cent rate for multinationals, said tax analysts.
The OECD and G20 have been working on the Base Erosion and Profit Shifting (BEPS) Project,
to counter tax avoidance by multinational corporations, with a global consensus proposal expected
to be made by the middle of this year.

Link to the story:
https://www.businesstimes.com.sg/government-economy/us-push-for-minimum-corporate-tax-globally-may-impact-
investment-hubs

Singapore firms' payment performance improves in Q1: SCCB
Payment performance of local firms improved in Q1 2021 albeit marginally, the Singapore
Commercial Credit Bureau (SCCB) said.
Occurrences of prompt payment in Q1 rose 1.21 percentage points to 42.50 per cent, from 41.29
per cent the quarter before. Year on year, prompt payment decreased 0.70 percentage point to
42.50 per cent.
On the other hand, occurrences of slow payment increased by 0.50 percentage point to 43.08 per
cent in Q1, up from 42.6 per cent last year, but showed a small 0.07 percentage point dip from
43.15 per cent in the previous quarter.
Meanwhile, partial payments fell marginally by 1.14 percentage points from 15.56 per cent in Q4
2020, but overall rose by 3.42 percentage points to 14.42 per cent, year on year.

Link to the story:
https://www.businesstimes.com.sg/government-economy/singapore-firms-payment-performance-improves-in-q1-
sccb

SME business sentiment hits highest reading since start of pandemic
Business sentiment among small and medium-sized enterprises (SMEs) for the next six months is
now just a notch below expansionary sentiments, the highest reading since Covid-19 pandemic
began last year.

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                                                                                                   Apr 9, 2021 / Issue 14

An SME index for April to September registered an overall reading of 49.9, up from the 48.2 of
the previous quarter. A reading below 50 indicates contractionary sentiments.
The figure was derived from a survey of more than 2,100 local SMEs, conducted by the Singapore
Business Federation (SBF) and global information-services company Experian between Jan 18
and Feb 26.

Links to the story:
https://www.businesstimes.com.sg/sme/sme-business-sentiment-hits-highest-reading-since-start-of-pandemic
https://www.straitstimes.com/business/economy/sme-business-sentiment-hits-highest-since-pandemic-began-with-
more-hiring-expected

Hospitality
2,500 participants over 3 days expected at S'pore's largest pilot trade show since
Covid-19 outbreak
Some 2,500 in-person business visitors, delegates and exhibitors will gather over three days for a
trade show at Marina Bay Sands from June 30, in the largest such pilot since the Covid-19
outbreak.
Organised by the Conference and Exhibition Management Services (Cems), the Architecture &
Building Services event will have double the number of in-person attendees compared with the
first two pilot large-scale meetings, incentives, conventions and exhibitions (Mice) events.
Another 5,000 virtual attendees are expected at the latest event, which will focus on the built
environment and its related sectors, such as safety and facilities management.

Link to the story:
https://www.straitstimes.com/singapore/consumer/2500-participants-over-3-days-expected-at-spores-largest-pilot-
trade-show-since

Operators in Singapore gear up to hold bigger weddings, performances and
tournaments from April 24
Event organisers and venue operators have started preparing for bigger groups, following the
announcement last week that capacity limits will be raised for weddings, pilot live performances
and spectator sports from April 24.
The Star Performing Arts Centre is in talks with venue hirers, including concert promoters, to see
how they can have up to 750 people at their events safely, said its spokesman, Ms Azlina Ahmad.
The centre has been holding live concerts featuring local bands for up to 250 people in
collaboration with Holland Village bar Wala Wala in the last few months.
Meanwhile, the Singapore Chinese Cultural Centre is hopeful that it can have more than 750 people
- the new capacity limit from April 24 - at its upcoming Sing.Lang2021 pop concert in June.
However, the requirement of pre-event testing at bigger events for those who have not been
vaccinated could deter some people from attending.
It is unclear if event organisers or attendees would be willing to bear the additional cost of pre-
event testing, said Ms Azlina, noting that The Star is still struggling to break even for its curated
concert series with Wala Wala, despite having full houses for the maximum 250 people allowed.

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Still, the operators say they are prepared to comply with the necessary measures, once more details
are released.
Most venue operators and event organisers like Cross Ratio Entertainment said they hope there
will be flexibility in allowing attendees to get tested either on-site or at external clinics.

Links to the story:
https://www.straitstimes.com/singapore/operators-gear-up-to-hold-bigger-weddings-performances-and-tournaments-
from-april-24
https://www.straitstimes.com/singapore/zoning-restrictions-relaxed-for-performing-arts-venues-from-april-24

Mice industry players cheer raised capacity limits, but some worry about costs
While industry players in the meetings, incentives, conventions and exhibitions (Mice) sector
welcome the move to increase capacity limits at events, some are also concerned about the
additional cost that comes with managing more people.
The president of the Singapore Association of Convention and Exhibition Organisers and
Suppliers (Saceos), Mr Aloysius Arlando, said: "It's actually a much-needed boost for our industry.
This is a step forward, given our very safe and calibrated approach towards restarting and
reopening our economy, particularly to travel and international visitors."
Some are concerned about the overheads that will rise with capacity, as more resources will be
needed for crowd control measures.
Another factor that adds to costs is the pre-event testing, which will be required at Mice events of
more than 250 people.

Link to the story:
https://www.straitstimes.com/singapore/consumer/mice-industry-players-welcome-capacity-increase-but-some-
worried-about-costs

Restrictive terms, poor outcomes hobble voucher scheme for tourism sector
From having to top-up additional cash to bad experiences, the SingapoRediscovers Vouchers
(SRV) scheme is getting a bad rap - to the point where over 2 million eligible adults have still not
redeemed their vouchers.
So far, more than S$108 million in redemptions and out-of-pocket payments have been made by
the more than 760,000 Singaporeans who used their vouchers at least once.
Many who have made purchases using the vouchers have also reported bad experiences, leading
to complaints about merchants on social media or in feedback to the Consumers Association of
Singapore (Case).
A key gripe: merchants' alleged failure to deliver promised products and services, especially as
purchases made using the vouchers are generally not refundable under STB rules.
Despite the low take-up, the Ministry of Trade and Industry (MTI) has no plans to extend its end-
June deadline for the scheme, and industry watchers said full participation would be an uphill
battle anyway.

Link to the story:
https://www.businesstimes.com.sg/government-economy/restrictive-terms-poor-outcomes-hobble-voucher-scheme-
for-tourism-sector

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Weekly News Select
                                                                                                   Apr 9, 2021 / Issue 14

Right time for tourism fund boost, as Singapore gears up for global rebound, say
watchers
Wellness, sustainability, technology and the rise of remote work: The Singapore Tourism Board
(STB) has set its sights on these trends as it moves to revive the beleaguered tourism sector's
fortunes in the long run.
And it has an enlarged war chest for this effort: a fresh injection of S$68.5 million has been put
into the Tourism Development Fund (TDF), taking the size of its ongoing five-year tranche to
S$848.5 million.
The Singapore Tourism Accelerator incubator programme will also run for two more years - until
September 2023 - with sustainability now part of its mandate. The scheme, which was introduced
in 2019, has supported 21 startups to develop 35 solutions to industry problems.
Other fresh efforts include an innovation space for businesses to test and scale digital
transformation - dubbed the Tourism Technology Transformation Cube, or "Tcube".
The STB will also launch a capability development roadmap this year, aimed at building skills
needed to support pandemic-era travel as Covid-19 puts fresh demands on the workforce.
In the meantime, upcoming projects will "increase our vibrancy and destination attractiveness".
These include a branch of the United States' Museum of Ice Cream, slated to open in H2 2021, as
well as a 360-degree lookout in the form of a rotating gondola on Sentosa next year.

Links to the story:
https://www.businesstimes.com.sg/government-economy/right-time-for-tourism-fund-boost-as-singapore-gears-up-
for-global-rebound-say
https://www.straitstimes.com/singapore/consumer/four-new-attractions-to-open-in-singapore-with-some-as-early-as-
this-year
https://www.straitstimes.com/singapore/consumer/singapores-tourism-to-tap-sustainability-wellness-and-tech-
trends-for-growth

New standards for Mice sector launched as S'pore prepares to hold larger events,
welcome visitors
Singapore has launched a new certification programme for the meetings, incentives, conventions
and exhibitions (Mice) sector for large-scale events to be conducted in a safe manner.
Event organisers, venue owners and suppliers who meet strict benchmarks and uphold best
practices in areas such as hygiene and sanitisation, safe distancing and emergency management
will be able to display a mark of assurance that they meet Singapore government standards, which
can serve to assure global participants, such as conference attendees.
The SG SafeEvents Certification, billed as a first-of-its-kind programme, was launched on April 7
by the the Singapore Association of Convention and Exhibition Organisers and Suppliers (Saceos).

Link to the story:
https://www.straitstimes.com/singapore/consumer/new-standards-for-mice-industry-launched-as-singapore-resumes-
larger-events

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Weekly News Select
Apr 9, 2021 / Issue 14

Industrial
A*Star, ChemoPower open S$3.9m lab to study TCM herbs
The Agency for Science, Technology and Research (A*Star) announced that it has opened a new
laboratory together with chemical analysis firm, ChemoPower Technology.
The new laboratory, with an injection of S$3.9 million over three years, will be the home ground
for scientists to investigate the chemical composition of traditional medicinal herbs commonly
used in traditional Chinese medicine (TCM).
Together, the team of researchers will focus on developing an integrated chemical analysis
platform and create a molecular fingerprint data bank on the 40 most commonly used herbs.

Link to the story:
https://www.businesstimes.com.sg/sme/astar-chemopower-open-s39m-lab-to-study-tcm-herbs

Digital Realty's third data centre offers blueprint for future data centres in Singapore
Digital Realty officially opened its third data centre in Singapore - one that offers a way forward
on how data centres in Singapore could be built in a sustainable and productive fashion.
In the construction of the multi-storey, 50 MW facility, design for manufacturing and assembly
(DfMA) technology was used. DfMA is a method of construction which involves construction
being designed for manufacturing offsite in a controlled environment, before being assembled
onsite.
Being Digital Realty's largest data centre in Singapore, SIN12 brings the company's total
committed investment to date in Singapore to over US$1 billion.

Links to the story:
https://www.businesstimes.com.sg/real-estate/digital-realtys-third-data-centre-offers-blueprint-for-future-data-
centres-in-singapore
https://www.straitstimes.com/tech/tech-news/new-data-centre-opens-in-loyang-bringing-digital-realtys-singapore-
investments-to

SP Group building South-east Asia's first large-scale underground substation
SP Group is constructing South-east Asia's first large-scale underground substation, a move that
will free up three hectares of prime land space as it seeks to optimise space in Singapore.
The land freed up will make way for a 34-storey development. Located in Labrador, the 230 kV
substation will serve the electricity needs of nearby towns such as Alexandra, Clementi, Keppel,
Pasir Panjang and the Science Park district, when it is in service.
The Urban Redevelopment Authority (URA) told The Business Times that the substation will be
integrated with the 34-storey commercial building, as one part of the larger Greater Southern
Waterfront. The Greater Southern Waterfront is an aspect of the URA Master Plan launched in
2019.
SP Group said that the substation and the commercial building are scheduled for completion in
2024.

Weekly News Select
Apr 9, 2021 / Issue 14

Links to the story:
https://www.businesstimes.com.sg/energy-commodities/sp-group-building-south-east-asias-first-large-scale-
underground-substation
https://www.straitstimes.com/business/economy/sp-group-building-south-east-asias-first-large-scale-underground-
substation

Contact:
Lee Sze Teck
Head, Research
(65) 6500 6510
szetecklee@huttonsgroup.com

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