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Weekly News Select
                                                                                                  Jul 2, 2021 / Issue 26

Top News for the Week
       •   Analysts debate cooling measures, as Singapore Q2 flash private home prices up for
           fifth straight quarter
       •   Thin home supply in Downtown area may stir more interest for Marina View site,
           triggered at S$1.51b
       •   Tender for Jalan Anak Bukit site closes below expectations with just five bids
       •   MAS says property market not overheated, but it will watch rising prices closely
       •   HDB resale prices climb for fifth straight quarter but at slower pace: Flash data
       •   Singapore 'could ease Covid-19 dine-in rules from July 12'
       •   Second Covid-19 jab can now be booked 4 weeks after first dose, from 6-8 weeks
           previously
       •   Covid-19 relief measures for property sector extended for 6 months
       •   Developers may seek extension to delivery date of possession
       •   Firmer global recovery on the cards in H2, but virus mutations, Fed moves could be
           drags: MAS
       •   May's manufacturing surge no flash in the pan as analysts upgrade forecasts for 2021
       •   Singapore's unemployment rates improve further in May
       •   Singapore tourism could shift into fast gear soon as it steps up vaccinations

Residential
Analysts debate cooling measures, as Singapore Q2 flash private home prices up for
fifth straight quarter
Property analysts continue to debate the odds of cooling measures and how targeted they would
be, with Singapore's Q2 private home prices rising for the fifth straight quarter, flash estimates
showed.
It comes too as Singapore's central bank flagged this week that it is watching closely the risk of
runaway housing prices, relative to income gains.
Conversations resurfaced after the Urban Redevelopment Authority (URA) released flash figures,
which estimated that the overall residential price index in Q2 2021 rose by 0.9 per cent for the
second quarter from Q1 2021. The quarter's gain comes after Q1 2021 saw a 3.3 per cent rise.
For the half year, prices increased by 4.3 per cent. Meanwhile, they rose 7.3 per cent compared to
Q2 2020, when the "circuit-breaker" period began on April 7 last year, noted Mark Yip, chief
executive officer of Huttons Asia.
Noting the Monetary Authority of Singapore (MAS) managing director Ravi Menon's speech, Mr
Yip suggested that property curbs "remain a possibility".
Mr Yip said: "Cooling measures are likely to be targeted at a certain group of buyers, such as
multiple home owners with higher ABSD (additional buyer's stamp duty) or lower LTV (loan-to-
value) or couples who decide to buy multiple homes to encourage prudence."
The tightened restrictions during Phase 2 (Heightened Alert), which took place from May 16 to
June 13, contributed to the slower growth pace in Q2 2021, analysts said.

              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
                                                                                                    Jul 2, 2021 / Issue 26

Mr Yip said that the additional measures deterred some developers from launching new projects,
pushing buyers to turn to the resale market, which is typically tagged with lower prices. Resale
volume made up a bigger chunk of the transactions in Q2 2021 at 61.1 per cent, compared with 57
per cent in Q1 2021, he added.

Links to the story:
https://www.businesstimes.com.sg/real-estate/analysts-debate-cooling-measures-as-singapore-q2-flash-private-
home-prices-up-for-fifth
https://www.straitstimes.com/business/property/singapore-private-home-prices-rise-09-in-q2-slowing-sharply-from-
recent-growth

Thin home supply in Downtown area may stir more interest for Marina View site,
triggered at S$1.51b
The white site at Marina View that was said to be triggered by IOI Properties at S$1.508 billion
may be well-received by developers given the limited supply of new homes in the Core Central
Region (CCR), analysts said. Given the large financial commitment required for the site,
developers are expected to set up joint ventures to parcel out the risk.
The tender was launched for sale by public tender, and will close at noon on Sep 21, 2021, the
Urban Redevelopment Authority (URA) said.
URA released the white site in Marina View for sale by public tender following a successful
application from a developer - not named by URA - that committed to bid at least S$1.508 billion
or S$1,379 per square foot per plot ratio (psf ppr) at tender.
The 0.78-hectare (about 84,000 sq ft) site, with 99-year leasehold tenure, can be developed up to
1.09 million square feet (sq ft) of gross floor area (GFA).
The plot can generate some 905 private homes, 540 hotel rooms and 21,528 sq ft GFA of
commercial space.
Lee Sze Teck, director of research at Huttons Asia, similarly said the tender will attract "no more
than five bidders" made up of consortiums, because of the large quantum and higher risks involved.

Links to the story:
https://www.businesstimes.com.sg/real-estate/thin-home-supply-in-downtown-area-may-stir-more-interest-for-
marina-view-site-triggered
https://www.straitstimes.com/business/property/marina-view-site-launched-for-sale-bids-below-1508-billion-will-
not-be-accepted

Tender for Jalan Anak Bukit site closes below expectations with just five bids
A state tender for the 99-year leasehold commercial and residential site at Jalan Anak Bukit came
in below expectations when it closed on June 29 with just five bids - of which three were joint bids
by the same duo.
Far East Organization and Sino Group appear bent on clinching the tender, putting in three separate
bids with different concept proposals.
The other two bids submitted were from Allgreen Properties in partnership with Kerry Properties
and Kerry Holdings; as well as Wing Tai Holdings which teamed up with Mercatus Commercial
Trust I.

                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
                                                                                                    Jul 2, 2021 / Issue 26

Allgreen, which has been submitting bids for integrated developments under the two-envelope
system, also participated in the Holland Village and Pasir Ris Central tenders, noted Huttons Asia
director of research, Lee Sze Teck. "It may be part of their strategy to have multiple projects along
the Bukit Timah stretch."
Analysts see the Jalan Anak Bukit site serving as a much-needed catalyst to rejuvenate the Beauty
World precinct as a new commercial development would inject vibrancy and fresh concepts.

Links to the story:
https://www.businesstimes.com.sg/real-estate/tender-for-jalan-anak-bukit-site-closes-below-expectations-with-just-
five-bids
https://www.straitstimes.com/business/property/jalan-anak-bukit-tender-closes-with-five-bids

MAS says property market not overheated, but it will watch rising prices closely
The Monetary Authority of Singapore (MAS) remains "highly vigilant" to the risk of a sustained
increase in housing prices relative to income trends, with a prolonged divergence seen as
unsustainable, Monetary Authority of Singapore (MAS) managing director Ravi Menon has said.
When asked by the media, Mr Menon said that the property market is not considered overheated
at this juncture.
"We will never tell in advance whether we would implement (property cooling) measures because
that defeats the purpose of implementing the measures," he said.
"We hope the market will continue to remain stable and that we don't have to make any moves.
"But we have said many times that we are just as determined to make sure that the market remains
stable, and prevent overheating from happening."
On whether there is a possibility of an asset bubble being formed on the back of flush global
liquidity, he said that this is a "big issue" for central banks and regulators around the world.

Link to the story:
https://www.businesstimes.com.sg/government-economy/mas-says-property-market-not-overheated-but-it-will-
watch-rising-prices-closely

Secretlab gaming chair co-founder Ian Ang snaps up GCB, penthouse for $51m
The 28-year-old co-founder of the Secretlab gaming chair firm has splashed out $51 million in just
a week on two luxury properties - a good class bungalow in Caldecott Hill and a penthouse near
the Botanic Gardens.
Mr Ian Ang, who is the chief executive of the ergonomic chair retailer, was granted an option to
purchase the $36 million bungalow in Olive Road on June 14 by Mr Danny Yong Ming Chong,
according to documents seen by The Straits Times.
The $36 million price tag translates to $1,537 per square foot (psf) based on the 23,424 sq ft site -
exceeding the last transacted price of $744 psf or about $20 million for a bungalow in Andrew
Road last November.
The caveat for the second freehold property, a 7,007 sq ft, five-bedroom triplex penthouse at
Leedon Residence off Farrer Road, was lodged for $15 million on June 28.

                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
Jul 2, 2021 / Issue 26

Link to the story:
https://www.straitstimes.com/business/property/secretlab-gaming-chair-co-founder-ian-ang-snaps-up-gcb-
penthouse-for-51m

Good Class Bungalow market is on a roll
The Good Class Bungalow (GCB) market is on a roll.
An analysis of URA Realis caveats data shows that year to date (with the latest transaction dated
June 18), there have been 50 deals in GCB Areas totalling nearly S$1.4 billion. This is higher than
the total for the whole of last year - 46 deals amounting to S$1.1 billion.
The action is expected to continue, with attractive new offerings on the market. New listings are
also at higher price levels.

Link to the story:
https://www.businesstimes.com.sg/real-estate/good-class-bungalow-market-is-on-a-roll

HDB resale prices climb for fifth straight quarter but at slower pace: Flash data
Housing Board resale prices climbed for the fifth consecutive quarter but eased from recent highs,
flash estimates released showed.
Resale prices rose 2.8 per cent in the three months to June this year from the previous quarter,
compared with a 3 per cent rise in the first quarter.
Year on year, HDB resale prices were up by 10.8 per cent.
The slower price increase could be due to buyers' resistance to paying more in cash over valuation,
said Huttons Asia director of research Lee Sze Teck.
An estimated 8 per cent fewer flats have changed hands in the second quarter of this year compared
with the first quarter, said Huttons Asia chief executive Mark Yip.
All HDB towns, except for Bukit Merah, Choa Chu Kang and Marine Parade, saw a lower
transacted volume, noted Mr Yip.
This was likely due to the tightened restrictions during Singapore's phase two (heightened alert) in
May and June, he added, although there is still keen interest in resale flats.
A total of 106 HDB flats were sold for at least S$1 million in the first half of this year, compared
with 82 such deals in 2020 and 64 in 2019.
Mr Yip expects the number of million-dollar flat transactions to exceed 200 this year.
"While it may make headlines for the transacted value, such transactions are less than 1 per cent
of the whole year transaction volume," he said.

Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-climb-for-fifth-straight-quarter-but-at-slower-pace-
flash-data-0
https://www.straitstimes.com/singapore/housing/hdb-resale-prices-climb-for-5th-straight-quarter-but-at-slower-28-
pace-flash-data

Weekly News Select
Jul 2, 2021 / Issue 26

HDB terraced houses: Where are they, why are people buying them, and is Sers a
possibility?
HDB terraced houses - a rarity in Singapore's public housing - have come under the spotlight,
following a record sale of a 210 sq m unit in Whampoa for $1.268 million this month, the most
expensive HDB resale property to change hands so far.
There are only 285 such HDB terraced units, and they are located in Jalan Ma'mor, Jalan Bahagia
and Jalan Tenteram in Whampoa, and Stirling Road in Queenstown - both sought-after mature
estates.
Like all HDB properties, these terraced units also come with 99-year leases. Those in Whampoa
have 50 years left, while those in Queenstown have 46 years left.
The dwindling leases on these terraced units have inevitably sparked talk about the possibility of
their being picked for the Selective En Bloc Redevelopment Scheme (Sers), in which the HDB
buys back old units and owners are offered a replacement unit in the vicinity.
Most of the analysts interviewed said the chances are not high at the moment, although some do
not rule out a small possibility of that in the future.

Link to the story:
https://www.straitstimes.com/singapore/housing/hdb-terraced-houses-where-are-they-why-are-people-buying-them-
and-is-sers-a

Commercial
Commercial properties set for big change post-Covid
Singapore’s commercial property market has seen the ups and downs of changes brought on by
Covid-19.
Both the Central Business District Incentive (CBDI) Scheme and Strategic Development Incentive
(SDI) Scheme were introduced to incentivise the redevelopment of older buildings to more
productive mixed-use developments, as part of the Urban Redevelopment Authority's (URA) 2019
Master Plan. Post-pandemic, these schemes have become even more pertinent as flexible working
arrangements drove businesses to evaluate their office spaces.
Under the CBDI scheme, qualifying properties are allowed to intensify their gross floor area (GFA)
by 25 to 30 per cent, depending on the proposed land use.
Meanwhile, the SDI is intended to redevelop precincts in strategic areas across Singapore, such as
Orchard Road, the CBD and Marina Centre.
Under the scheme, developers can increase their GFA or attain flexibility on other development
controls if they have innovative proposals that transform the precinct.
Since the circuit-breaker period, URA has received nine outline applications under the CBDI
Scheme, of which six have been given in-principle approval.
Three outline applications under the SDI Scheme were also given in-principle approval.

Link to the story:
https://www.businesstimes.com.sg/real-estate/commercial-properties-set-for-big-change-post-covid

Weekly News Select
                                                                                                   Jul 2, 2021 / Issue 26

Government
Singapore 'could ease Covid-19 dine-in rules from July 12'
The next relaxation of Covid-19 measures is expected on July 12, as part of a three-step plan for
the country's further reopening that could potentially see Singapore transitioning to a new normal,
as well as leisure travel returning by the end of the year.
"Come July 12, we are looking at opening up to (allow) more people dining together, and whether
there are other openings that we can consider," Health Minister Ong Ye Kung told The Straits
Times' senior health correspondent Salma Khalik in an exclusive interview.
He added that this relaxation of measures is less dependent on vaccination rates, and more on
whether Covid-19 clusters are under control.
The next milestone for further easing will be in the second half of July, when half of the population
would have been fully vaccinated, followed by National Day on Aug 9, when two-thirds of
residents would have been inoculated, he added.
He said he also shares Singaporeans' aspirations for leisure travel to resume by the end of the year.
Possible destinations would be countries with high vaccination rates, and which have seen
downward trends in their infection rates. These include most countries in the European Union, as
well as the United States.
Asked if end-August or early September would be a good time to switch gears to the new normal
- given that all who want to and are eligible for the jab would have been inoculated - Mr Ong said
this was a realistic timeframe, based on the country's vaccine supplies. "What you would see is not
a big-bang opening end of August or September, but a progressive one," he added.
The task force announced on June 24 that Singapore will transition to a new normal where Covid-
19 will be managed like other endemic diseases.
There are also other key considerations in transitioning to living with endemic Covid-19, though
the decision had been made based on science, he added. After an extended period of restrictions,
fatigue has set in, and there is a certain sense of battle weariness among people.
"You cannot expect people to live like that - restricting themselves, not meeting friends, not being
able to travel," he said, noting that some have been apart from families, and that some workers
have not been allowed to enter the country.
There are also other major considerations, such as the trajectory of the pandemic, as well as the
development of the vaccines and treatments Singapore now has at its disposal that could make
living with endemic Covid-19 a possibility.
While scientists estimate that a vaccination rate of at least 80 per cent is required for the population
to gain herd immunity against the Delta variant, Mr Ong said that people can still live with an
endemic Covid-19 if this is not achieved. "People will still get infected, but they are fine. And so
you make Covid-19 more like influenza, you don't make Covid-19 like measles, for example,
where you try to eradicate (it)."
But masks will be among the last of measures that will be reviewed, Mr Ong said, noting that Israel
has recently reintroduced a requirement to wear masks indoors amid a rise in coronavirus cases,
just days after it lifted the measure. "Masks, to me, are a very important non-pharmaceutical
intervention, and may well be one of the last things we want to consider removing," he said.

               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
                                                                                                    Jul 2, 2021 / Issue 26

Even if mask-wearing requirements are removed, this will perhaps be just for safer outdoor
environments, such as parks, he said. "In terms of risk and reward, it is one of the most sensible
things to do."

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-could-ease-covid-19-dine-in-rules-from-july-12
https://www.straitstimes.com/singapore/health/st-exclusive-spore-could-ease-covid-19-dine-in-rules-from-july-12-
may-allow-leisure
https://www.straitstimes.com/singapore/health/masks-to-remain-key-even-in-covid-19-new-normal-ong-ye-kung
https://www.straitstimes.com/singapore/health/st-exclusive-getting-covid-19-could-soon-mean-an-mc-and-isolation-
and-self-tests-at
https://www.straitstimes.com/singapore/st-exclusive-spore-may-allow-leisure-travel-by-year-end-us-eu-hk-among-
likely-locations

Second Covid-19 jab can now be booked 4 weeks after first dose, from 6-8 weeks
previously
Members of the public who are awaiting their second dose of the Covid-19 vaccine can now opt
to get it earlier, as Singapore ramps up its vaccination exercise.
Checks by The Straits Times on June 29 found that several people who were able to book their
second jab only about six to eight weeks after their first jab are now able to shorten the interval to
four weeks.
The Ministry of Health (MOH) said in the evening that the move to shorten the interval took effect
on June 29.

Link to the story:
https://www.straitstimes.com/singapore/health/second-covid-19-jab-can-now-be-booked-4-weeks-after-first-dose-
from-6-8-weeks

Countries that open too quickly before high levels of vaccine coverage will see Covid-
19 spikes: Lawrence Wong
Countries that open up too quickly, without sufficient protection for seniors, will see high Covid-
19 infection rates, said Finance Minister Lawrence Wong on June 29.
More people may be hospitalised or even die of the virus, he noted, adding that Singapore is trying
to avoid such a situation.
Mr Wong, who co-chairs the multi-ministry task force tackling the pandemic, laid out three key
measures of the current transition period before Singapore reaches a new phase of high levels of
vaccine coverage.
First, some restrictions - such as those on social gatherings - will remain, although they will be
progressively eased as vaccination rates go up.
Second, the country will adopt differentiated treatment for those who are vaccinated. For example,
larger events may be allowed if everyone is vaccinated and those who are vaccinated may be able
to travel more freely.
Lastly, Singapore will progressively open its borders to allow more travel.

                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
Jul 2, 2021 / Issue 26

Links to the story:
https://www.straitstimes.com/singapore/jobs/countries-that-open-too-quickly-before-high-levels-of-vaccine-
coverage-will-see-covid
https://www.businesstimes.com.sg/government-economy/singapore-still-in-transition-lawrence-wong

Ministry of Law refines shareholding interest criteria for QC exemptions
Shares of publicly listed housing developers that are held by Singapore shareholders through
white-listed nominee companies may now be counted towards fulfilling the requirements for
exemption from the Qualifying Certificate (QC) regime, the Ministry of Law (MinLaw) and
Singapore Land Authority (SLA) said.
Collective interest held by members of the same family may also be considered, subject to certain
criteria.
MinLaw made the refinements after taking into account feedback received since the exemption
framework was introduced in February 2020.
The changes will be implemented with immediate effect.

Link to the story:
https://www.businesstimes.com.sg/real-estate/ministry-of-law-refines-shareholding-interest-criteria-for-qc-
exemptions

Covid-19 relief measures for property sector extended for 6 months
The Singapore government has extended temporary relief measures for property developers in
view of the continued disruptions to construction timelines from the Covid-19 pandemic.
Developers will get six-month extensions to the construction timeline-related requirements for the
Project Completion Period (PCP), Additional Buyer's Stamp Duty (ABSD) regime and Qualifying
Certificate (QC) regime.
The latest extensions are in addition to temporary relief measures announced on May 6, 2020 and
October 8, 2020. They do not alter the existing residential property market cooling measures, the
ministries noted.
The PCP will be extended by six months for qualifying residential, commercial and industrial
development projects.
Commencement and completion timelines for residential development projects will be extended
by six months in relation to the remission of ABSD for qualifying household developers.
The extensions of these two measures will be granted to qualifying developers automatically, and
no application is necessary.
The PCP will also be extended by six months for residential development projects under the QC
regime for qualifying foreign housing developers.

Links to the story:
https://www.businesstimes.com.sg/real-estate/covid-19-relief-measures-for-property-sector-extended-for-6-months
https://www.straitstimes.com/singapore/temporary-relief-measures-for-property-developers-extended-again-due-to-
covid-19

Weekly News Select
Jul 2, 2021 / Issue 26

Developers may seek extension to delivery date of possession
With construction timelines under pressure, developers plagued by construction delays will now
get some relief in the form of an extension should they be unable to meet the delivery date of
possession in their sale and purchase (S&P) agreements.
According to a circular issued to developers by the Urban Redevelopment Authority's (URA)
Controller of Housing (COH), effective July 1, developers who need to can serve a notice on
property buyers for an extension of up to 122 days, in line with the extension granted to
construction projects. This is subject to certain qualifying conditions.
Developers can extend the delivery date of the new property without being liable to pay liquidated
damages for late delivery up to the extended period.
Those who need an extension of more than 122 days will need to have an assessor determine the
period of extension, which would be equivalent to the length of construction delay as a result of
the pandemic.
Meanwhile, property buyers who rack up certain out-of-pocket costs due to a delay in the delivery
of their unit, such as having to rent alternative premises, will be able to seek reimbursement from
developers. Where damages apply, there will be a cap of up to 70 per cent of the liquidated
damages originally payable.
"This approach allows for co-sharing of the delay costs between the developer and purchaser," the
COH added.
Similarly, those buying flats from the Housing and Development Board will also be able to claim
up to 70 per cent of the liquidated damages, the circular showed.

Link to the story:
https://www.businesstimes.com.sg/real-estate/developers-may-seek-extension-to-delivery-date-of-possession

Singapore to ink free trade deal with Latin American bloc by end of 2021
Singapore will sign a free trade agreement (FTA) by the end of this year with the Pacific Alliance
(PA), a trading bloc of four Latin American nations - Chile, Colombia, Mexico and Peru.
Minister of State for Trade and Industry Alvin Tan said on June 29 the agreement will enable
businesses on both sides to access market opportunities and foster greater cooperation in areas
such as e-commerce, customs, trade facilitation and maritime services.
Negotiations for the Pacific Alliance-Singapore Free Trade Agreement were concluded last
December, after three years of deliberations.

Link to the story:
https://www.straitstimes.com/business/economy/singapore-to-ink-free-trade-deal-with-latin-american-bloc-by-end-
of-2021

Stage 2 of Thomson-East Coast MRT Line to open on Aug 28
The long-awaited second stage of the Thomson-East Coast MRT Line will start running on Aug
28.
Transport Minister S. Iswaran on June 30 said the new six-station stretch - connecting Springleaf,
Lentor, Mayflower, Bright Hill, Upper Thomson and Caldecott stations - "would not have been

Weekly News Select
                                                                                                    Jul 2, 2021 / Issue 26

possible without the hard work, adaptability and personal sacrifices of our technicians, engineers
and ground staff".
Delayed in part by the Covid-19 pandemic, TEL2 will have two interchanges - Caldecott with the
Circle Line and Bright Hill with the future Cross Island Line.

Link to the story:
https://www.straitstimes.com/singapore/transport/stage-2-of-thomson-east-coast-mrt-line-to-open-on-aug-28

Singapore, UK launch negotiations on digital economy agreement
Singapore and the UK have kickstarted negotiations on a bilateral digital economy agreement.
The UKSDEA, as it is called, seeks to facilitate digital trade and open up new opportunities in the
two countries and their respective regions by making it easier to do business digitally between the
two countries.
This was announced in a joint release by the Ministry of Trade and Industry (MTI), Ministry
Communications and Information (MCI), and the Infocomm Media Development Authority
(IMDA).
The UKSDEA will include establishing forward-looking rules to enable trusted cross-border data
flows, prohibit data localisation, and ensure high standards in data protection.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-uk-launch-negotiations-on-digital-economy-
agreement
https://www.straitstimes.com/singapore/singapore-britain-launch-negotiations-for-digital-economy-agreement

Economy
Firmer global recovery on the cards in H2, but virus mutations, Fed moves could be
drags: MAS
A firmer global recovery is on the cards in the second half of 2021 with the world's two largest
economies the US and China witnessing strong rebounds, but downside risks remain significant,
said a top executive from the Monetary Authority of Singapore (MAS).
Potential drags include the emergence of more infectious or lethal virus mutations, as well as a
sharp pickup in inflation in the US, said MAS's managing director Ravi Menon at the launch of
the annual report.
On inflation, in particular, the Fed could withdraw policy accommodation sooner than expected,
which could lead to markets reacting by driving up long-term interest rates.
"The premature tightening of financial conditions could then trigger increased volatility in
financial markets, especially in economies that have yet to emerge from the pandemic and those
with higher fiscal or external funding needs," he noted.
As for Singapore, it should see a recovery in the second half of this year, alongside strengthening
global demand and further progress in its vaccination programme, said Mr Menon.
He added that Singapore's GDP growth could exceed the 4-6 per cent forecast range, but this is
barring any setback to the global economy. The 4-6 per cent official forecast range was maintained
last month and will be next reviewed in August.

                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
Jul 2, 2021 / Issue 26

Links to the story:
https://www.businesstimes.com.sg/banking-finance/firmer-global-recovery-on-the-cards-in-h2-but-virus-mutations-
fed-moves-could-be
https://www.straitstimes.com/business/banking/singapore-financial-sector-grew-51-in-2020-faster-than-before-
covid-19-mas-annual

May's manufacturing surge no flash in the pan as analysts upgrade forecasts for 2021
Singapore’s factory sector posted bumper year-on-year growth in May, off the low base from the
previous year's "circuit breaker" shutdown.
The surge is not likely to recede in the second half, with analysts upping their forecasts for
industrial production and positive on the boost to the full-year economic rebound.
Output from the local manufacturing sector surged by 30 per cent year on year in May, for its
seventh straight month of growth - picking up from the 2.3 per cent rise in April, according to
Economic Development Board (EDB) figures.
With factory output now higher by 12.5 per cent for the first five months combined, economists
are now more bullish on their full-year estimates.
The latest manufacturing performance was boosted by the volatile biomedical cluster, which
reversed a double-digit drop in the month before, to swell by 35.6 per cent in May.
When biomedical cluster contributions were excluded, factory output added 29 per cent for the
month.
Otherwise, electronics and precision engineering production was sustained by 5G demand for
semiconductors and "strong capital investment in the global semiconductor industry", the EDB
noted in its report.

Links to the story:
https://www.businesstimes.com.sg/government-economy/mays-manufacturing-surge-no-flash-in-the-pan-as-
analysts-upgrade-forecasts-for
https://www.straitstimes.com/business/economy/singapore-factory-output-jumps-30-in-may-bolstered-by-low-base-
a-year-ago

Singapore's unemployment rates improve further in May
Singapore’s unemployment rates fell further in May, at the overall level as well as for residents
and citizens, according to the Manpower Ministry (MOM).
Overall unemployment inched down to 2.8 per cent, after having stalled at 2.9 per cent in April.
Resident unemployment was 3.8 per cent, down from 3.9 per cent, while citizen unemployment
fell to 4.0 per cent, from 4.1 per cent previously.
All three rates have been declining since September's peak.
There were 88,600 residents unemployed in May 2021, including 79,000 citizens. This is down
from 92,100 unemployed residents, including 82,800 citizens, in April.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapores-unemployment-rates-improve-further-in-may
https://www.straitstimes.com/singapore/jobs/spore-resident-unemployment-rate-falls-for-seventh-straight-month

Weekly News Select
Jul 2, 2021 / Issue 26

More help to be given to heartland enterprises in push for digitalisation: Low Yen
Ling
Heartland enterprises can now look forward to gain from a series of new initiatives aimed at
helping them digitalise their business, said Minister of State Low Yen Ling at a heartland enterprise
seminar.
To help businesses go digital, Enterprise Singapore (ESG) will be collaborating with Institute of
Technical Education College by engaging its students to help heartland business owners create an
online presence.
These students will also assist companies in setting up messaging services such as WhatsApp; and
a social media presence, which will improve the businesses' discoverability, said Ms Low.
More details on the initiative will be announced at a later date, she added.

Links to the story:
https://www.businesstimes.com.sg/sme/more-help-to-be-given-to-heartland-enterprises-in-push-for-digitalisation-
low-yen-ling

Own-account work boosted by Covid-19, but trend likely to persist: analysts
While the recent increase in contract workers amid the Covid-19 pandemic may not necessarily be
sustained as the labour market normalises, the longer-term trend is likely here to stay, said analysts.
In 2020, the share of own-account workers - self-employed workers who are not employers -
among working residents rose to 9.7 per cent, the highest in the last decade and up from 8.8 per
cent in 2019, figures from the Ministry of Manpower (MOM) showed.
Of some 228,200 own-account workers in 2020, 190,800 or 84 per cent were doing so by choice,
"mostly because they enjoyed the flexibility and freedom associated with own-account work",
according to the MOM's Labour Force in Singapore report.
But the number of workers engaging in own-account work on a "non-preferred basis" rose to
37,400, up from 21,500 in 2019, which the ministry said reflected weaker labour market
conditions.
In 2020, private-hire car drivers became the most common occupation among regular primary
own-account workers, with 34,400 doing so.
Of these, 70 per cent were non-tertiary educated, and 57 per cent were aged 50 and over. Most of
the increase in private-hire car drivers over the year - with 10,700 more than in 2019 - also came
from those demographics, said the MOM.
The next most common occupations were taxi drivers; insurance sales agents or brokers; and real
estate agents.

Link to the story:
https://www.businesstimes.com.sg/government-economy/own-account-work-boosted-by-covid-19-but-trend-likely-
to-persist-analysts

More S'poreans tap schemes to upskill, switch careers amid Covid-19 pandemic
More Singaporeans tapped professional conversion programmes (PCPs) last year to learn new
skills and switch careers, amid a weakened hiring market due to the Covid-19 pandemic.

Weekly News Select
Jul 2, 2021 / Issue 26

Some 6,270 professionals, managers, executives and technicians (PMETs) joined such
programmes last year, a jump of 41 per cent from 2019, Workforce Singapore (WSG) told The
Straits Times.
These mid-career workers went through structured training and gained on-the-job experience so
they can change sectors or be redeployed to other roles within their companies, said the
government agency.
WSG offers about 100 PCPs in more than 30 sectors. Close to 20 new programmes were introduced
last year, including ones for furniture and lifestyle designers, and advanced biopharmaceuticals
manufacturing professionals.

Link to the story:
https://www.straitstimes.com/singapore/more-sporeans-tap-schemes-to-upskill-switch-careers-amid-covid-19-
pandemic

Hospitality
Recipients of Sinovac Covid-19 vaccine not exempted from pre-event testing: MOH
People who have received the Sinovac Covid-19 vaccine will not be exempted from pre-event
testing, said the Ministry of Health (MOH) on June 30.
Vaccines not included in Singapore's national vaccination programme - Sinovac is among them -
may lack sufficient documentation of how effective they are at protecting people against Covid-
19 infection and, in particular, against the Delta variant of the virus currently circulating, said
MOH.
The Delta strain is a new mutation of the coronavirus that is more infectious.
"Hence, from the public health point of view, individuals vaccinated with vaccines other than those
in our Covid-19 national vaccination programme will still have to undergo pre-event testing," said
MOH.

Link to the story:
https://www.straitstimes.com/singapore/recipients-of-sinovac-covid-19-vaccine-not-exempted-from-pre-event-
testing-moh

Singapore tourism could shift into fast gear soon as it steps up vaccinations
Things are looking up for Singapore’s tourism sector – both inbound and outbound – as vaccine
roll-outs point the way towards a post-pandemic normal and Health Minister Ong Ye Kung
indicated that residents may soon jet-set again.
Heartened by recent plans to reopen international borders when vaccination rates increase, analysts
also predict a pick-up in arrivals by the fourth quarter of this year.
This is even as the Republic recorded its second straight month-on-month decline in visitors in
May, as the latest data from the Singapore Tourism Board (STB) showed.
STB data showed that international arrivals fell to 14,190 in May, down from 25,740 in April –
although numbers were still better than the meagre 880 during the year-ago circuit breaker.
May’s lower passenger traffic was reflected in hotel sector turnover, with industry room revenue
declining to S$60.1 million for the month, from S$79.8 million in April.

Weekly News Select
Jul 2, 2021 / Issue 26

Link to the story:
https://www.businesstimes.com.sg/government-economy/singapore-tourism-could-shift-into-fast-gear-soon-as-it-
steps-up-vaccinations

Industrial
S'pore Govt releasing more industrial land for sale in second half of 2021
Some 5.14ha of industrial land in Singapore is available for sale via public tender in the second
half of the year, up from 3.86ha in the first six months.
Four sites are on the confirmed list, while three are on the reserve list under the Industrial
Government Land Sales programme, the Ministry of Trade and Industry said on June 28.
The three reserve sites are also on the reserve list for the first half of the year.
All seven plots in the latest launch are zoned B2 for heavier industrial use, and industrial landlord,
JTC, is the sales agent.

Link to the story:
https://www.straitstimes.com/business/spore-govt-making-available-more-industrial-land-for-sale-in-second-half-of-
2021

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

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