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Weekly News Select
Aug 14, 2020 / Issue 33
Top News for the Week
• More than 7,800 HDB BTO flats in 8 estates launched in combined sales exercise
• Closures, layoffs likely to rise, but nation will pull through: PM Lee
• BCA announces measures for construction restart
• Condo owners should go easy in exercising penalty clauses during Covid-19: MOM
• Singapore, Japan set to resume essential travel next month
• Singapore may take 'some quarters' to bounce back from 2020 recession
• NODX 2020 growth forecast raised to 3-5 per cent
• Manufacturing sector grows by 3.5% in H1 2020
• Industrial gets chic: Sungei Kadut gears up for the future with green revamp
Residential
More than 7,800 HDB BTO flats in 8 estates launched in combined sales exercise
Home seekers who could not apply for a Build-to-Order (BTO) flat in May now have plenty of
options as 7,862 new flats in eight estates have been launched for sale by the Housing Board
(HDB).
For the first time in 14 years, 472 new units are up for sale in the mature estate of Bishan. The
two-room flexi, three-room and four-room flats in Bishan Towers, will have a waterfront view of
the Kallang River. It is served by Bishan Street 11 and Braddell Road. Prices start from S$176,000
for a two-room flexi flat, excluding grants, and S$484,000 for a four-room flat. The last time new
flats were up for sale in Bishan was in 2006, when 176 studio apartments designed for the elderly
were launched.
Besides Bishan, the other flats are spread across the mature towns of Ang Mo Kio, Geylang, Pasir
Ris and Tampines, and the non-mature towns of Choa Chu Kang, Tengah and Woodlands.
There are a total of 11 housing projects launched for sale, including flats that were originally slated
to launch in May but were postponed due to the extension of the circuit breaker.
There is no Sale of Balance Flats sales exercise this round.
In November, HDB will offer about 5,700 flats in Bishan, Sembawang, Tampines, Tengah and
Toa Payoh.
Another 3,550 flats in Bukit Batok, Tengah, Kallang/Whampoa and Toa Payoh (Bidadari) will be
launched in February next year.
Links to the story:
https://www.businesstimes.com.sg/real-estate/more-than-7800-hdb-bto-flats-in-8-estates-launched-in-combined-
sales-exercise
https://www.straitstimes.com/singapore/housing/over-7800-new-bto-flats-on-offer-in-eight-estates
https://www.straitstimes.com/singapore/new-flats-in-bishan-after-14-years
https://www.straitstimes.com/singapore/housing/a-number-of-projects-may-take-up-to-five-years-to-complete
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Aug 14, 2020 / Issue 33
HDB set to launch first batch of BTO flats in Tengah's new Park district
More than 1,040 Build-To-Order (BTO) flats in Tengah will be on sale this month as Singapore's
newest town, billed as a "forest town", continues to take shape.
The Parc Residences @ Tengah project is the first BTO housing parcel to be launched for sale in
the new Park district, the Housing and Development Board (HDB) announced.
Park is the third of five districts in the town to see a BTO launch. It will hold an estimated 7,200
new flats when fully completed.
Located next to Tengah's green lung called Central Park, the district will occupy 104 hectares and
feature a number of green ways such as a 1.5km-long rainforest walk that weaves through various
housing projects.
Public housing in two of the districts - Plantation and Garden - were launched earlier. The other
two districts in Tengah are Brickland and Forest Hill.
When fully developed, it will provide about 42,000 new homes.
Links to the story:
https://www.businesstimes.com.sg/real-estate/hdb-set-to-launch-first-batch-of-bto-flats-in-tengahs-new-park-district
https://www.straitstimes.com/singapore/housing/first-bto-flats-for-tengahs-new-district
https://www.straitstimes.com/singapore/housing/green-green-grass-of-home-for-residents-in-tengahs-park-district
Big appetite for latest BTO flats a day after launch
Demand is high for the Housing Board's (HDB) latest Build-To-Order (BTO) exercise, with flats
in both mature and non-mature estates in Geylang and Woodlands heavily oversubscribed, just
one day into their one-week launch for sale.
Yhere were on average more than two applicants for each of the 7,862 flats available at this sales
exercise, even after HDB said some of the flats in this launch may take up to five years to build
due to construction safety measures introduced since Covid-19.
Among the most in-demand units were larger flats in mature estates. There were 2,400 applicants
for 334 four-room flats in the Dakota One project in Geylang, while 1,180 applications were
received for 140 five-room flats in Ang Mo Kio's Kebun Baru Edge.
Also popular were five-room flats in UrbanVille @ Woodlands, which had 1,838 applicants vying
for 438 units in the non-mature estate. Similarly, there were 1,024 applications for the 325 five-
room flats in Costa Grove in Pasir Ris.
Applications for these flats close on Aug 18. The flats will be allocated through balloting.
Link to the story:
https://www.straitstimes.com/singapore/big-appetite-for-latest-bto-flats-a-day-after-launch
Singapore's condo resale volume nearly doubles in July: SRX
Pent-up demand and a surge in HDB upgraders entering the market nearly doubled the resale
volume of non-landed private homes in Singapore in July; 978 units were resold, up from the 496
units resold in June 2020.
Volumes were 10 per cent higher from a year ago and 9.3 per cent higher than the five-year average
volumes for the month of July, going by flash figures from a real estate portal.
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Aug 14, 2020 / Issue 33
By region, 53.6 per cent of the volumes came from sales in the outside of central region (OCR),
27.8 per cent came from the rest of central region (RCR) or city fringes, while 18.6 per cent of
sales was from the core central region (CCR).
Links to the story:
https://www.businesstimes.com.sg/real-estate/singapores-condo-resale-volume-nearly-doubles-in-july-srx
https://www.straitstimes.com/business/condo-resales-rebound-with-july-volume-nearly-double-that-of-june
Condo, HDB rents in July see first uptick since February
It was a mixed picture for Singapore's rental housing market - while rents for HDB flats and private
apartments saw their first monthly increase in four months in July, leasings fell as the Covid-19
pandemic continued to impact travel and jobs.
The data showed HDB rents rose 1.4 per cent in July from the previous month, a bigger rate of
increase than the small 0.4 per cent rise for private condominiums and apartments.
Year-on-year, overall rents for private apartments in July are down 0.9 per cent from from July
2019, and are 17.5 per cent off their peak in January 2013. For HDB flats, rents are down by 0.5
per cent from a year ago and 14.9 per cent lower than their peak in August 2013.
Rental volume, meanwhile, shrank for both the private and HDB resale markets last month.
July leasings for private condominiums and apartments fell 7.2 per cent month-on-month to 3,880
units. This is 32.3 per cent lower than a year ago and 22.8 per cent less than the five-year average
volume for the month of July.
The volume for HDB flats in July tumbled 19.1 per cent from June to 1,435 flats. This is 31.6 per
cent lower than a year ago and 25.7 per cent below the five-year average volume for the month.
Links to the story:
https://www.businesstimes.com.sg/real-estate/condo-hdb-rents-in-july-see-first-uptick-since-february
https://www.straitstimes.com/business/property/condo-hdb-rents-up-for-1st-time-since-feb-but-volumes-fall
Commercial
Tuan Sing to divest Robinson Point for S$500m
Property developer Tuan Sing Holdings is proposing to divest Robinson Point for S$500 million,
the mainboard-listed firm announced in a bourse filing.
Tuan Sing expects to realise a gain of about S$128.3 million on the sale. The proceeds may be
recycled to fund committed investments, retire existing debts and fund general corporate and
working capital needs, Tuan Sing said.
The firm did not disclose the buyer's identity in its filing, but said that it is a British Virgin Islands-
incorporated entity that is not related to Tuan Sing, its directors or controlling shareholders.
Links to the story:
https://www.businesstimes.com.sg/companies-markets/tuan-sing-to-divest-robinson-point-for-s500m-0
https://www.straitstimes.com/business/property/tuan-sing-to-sell-robinson-point-for-500m-0
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Aug 14, 2020 / Issue 33
Co-working space operators tone down growth plans
Expansion plans among co-working space operators have been more muted this year, with the
opening of new work centres delayed and a more subdued take-up of new spaces.
While several firms said their plans to open more centres or expand existing spaces remain on
track, the general sentiment has been more cautious than the bullish approach last year, when
almost 800,000 sq ft of new space was leased by operators of flexible workspaces.
Operators are predicted to take up around 200,000 sq ft of new space this year, given the subdued
market, with new take-up expected to be driven by partnerships or management agreements with
asset owners.
Link to the story:
https://www.straitstimes.com/business/co-working-space-operators-tone-down-growth-plans
Retail
Retail rents seen falling up to 15% this year as pandemic bites
Shopping malls in Singapore have been quite beaten down by Covid-19 this year, but as in all
things, some have held up better than others.
Retail rents in prime suburban malls on transport nodes are projected to fall about 5 per cent in
2020 while the rest are expected to decline as much as 15 per cent.
Tenants with staying power now have the upper hand, and the most desirable ones may be able to
demand six months of free rent when it is time to renew leases or sign new ones.
Link to the story:
https://www.businesstimes.com.sg/real-estate/retail-rents-seen-falling-up-to-15-this-year-as-pandemic-bites
Vegetable wholesaler CCL Group sets sights on consumer business
When the Covid-19 pandemic struck earlier this year, vegetable wholesaler CCL Group saw its
sales halve, as the food establishments that it usually supplied to were hard-hit by the circuit
breaker measures.
This gave the small and medium-sized enterprise (SME) the push to sell directly to customers, an
idea that he has been toying with for "a very long time".
CCL, which works with farms in Malaysia, China, Vietnam and Thailand to bring in fresh produce
to restaurants, caterers, stalls and hawkers, now sells directly to households.
They opened a 350-sq ft physical store at Serangoon known as The Village on Aug 8, to focus on
its growing retail segment.
Link to the story:
https://www.businesstimes.com.sg/sme/vegetable-wholesaler-ccl-group-sets-sights-on-consumer-business
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www.huttonsgroup.comWeekly News Select
Aug 14, 2020 / Issue 33
National Day promotions pull in crowds of shoppers
Tills are ringing again after retailers pulled out all the stops to draw shoppers with promotions
ahead of National Day.
Some retailers noted that business had improved in the past few weeks with an increase in footfall,
and this is expected to continue over the long weekend.
The Orchard shopping belt was packed, with long queues outside popular stores like Tangs, which
was among those offering promotions. Some people said they waited for more than 20 minutes
before being let into the department store, which allowed in shoppers in batches as it had limited
allowable capacity.
But retailers remain wary about prospects in the longer term.
Link to the story:
https://www.straitstimes.com/singapore/national-day-promotions-pull-in-crowds-of-shoppers
Impossible Foods eyes retail sales for further growth in Singapore
Impossible Foods, the maker of the realistic-tasting plant-based beef patty, is gunning for retail
sales in Singapore to accelerate its growth.
The Temasek-backed company has yet to launch in grocery stores in Asia but in the United States,
its retail footprint has grown more than 50 times in less than six months.
Impossible Foods intends to partner large supermarket chains in Singapore, said Nick Halla, the
company's first employee and its current senior vice-president of international.
Link to the story:
https://www.businesstimes.com.sg/garage/impossible-foods-eyes-retail-sales-for-further-growth-in-singapore
Government
Closures, layoffs likely to rise, but nation will pull through: PM Lee
Business closures, retrenchments and unemployment are all likely to rise in the coming months,
said Prime Minister Lee Hsien Loong, but he remained confident the country will get through the
current crisis.
In his National Day message, Mr Lee outlined the government's current plans to help people find
jobs and acquire new skills, adding that it might take longer than in the past for Singapore to get
through this crisis.
He told Singaporeans that the labour movement has been working with employers to create job-
training programmes and career pathways. It will also ensure that every worker is treated fairly
and with dignity, especially when job losses cannot be avoided.
Mr Lee also stressed the importance of unity and resilience as a country, considering that the crisis
is "far from over".
It will most likely take a year or two before a vaccine is widely available, and the threat of the
virus is blunted, Mr Lee said. "Until then, we have to maintain our vigilance and resolve, to keep
ourselves, our loved ones and our neighbours all safe."
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Aug 14, 2020 / Issue 33
The shared ordeal will toughen a whole population, he added, and bond us together as one united
people - similar to how the Pioneer and Merdeka Generations were tempered by separation and
independence, plus economic crises in Singapore's early years as a nation.
The prime minister also unveiled plans for the Float @ Marina Bay, which will soon be a
permanent space to commemorate National Service, and the central focus of the new Marina Bay
downtown.
Named NS Square, the development will be aligned on a central axis, with The Promontory on the
opposite side of the bay.
Links to the story:
https://www.businesstimes.com.sg/government-economy/closures-layoffs-likely-to-rise-but-nation-will-pull-
through-pm-lee
https://www.straitstimes.com/singapore/spore-will-emerge-more-united-from-shared-ordeal-pm-lee
https://www.straitstimes.com/singapore/lets-show-the-world-singaporeans-will-stay-united-pm-lee
https://www.straitstimes.com/singapore/ns-square-to-be-focus-of-new-marina-bay-downtown
Coronavirus: Seventh month prayer services for up to 50 people at a time
Religious organisations will be allowed to conduct seventh month prayer services with up to 50
people at a time from Aug 19 to Sept 16.
The cap of 50 people excludes religious and supporting workers, the Ministry of Culture,
Community and Youth (MCCY) said.
However, singing and other live performances such as getai will not be permitted, though
worshippers can burn incense and joss paper within the premises.
The ministry's advisory was developed in consultation with the Singapore Buddhist Federation
and the Taoist Federation.
Link to the story:
https://www.straitstimes.com/singapore/seventh-month-prayer-services-for-up-to-50-people-at-a-time
BCA announces measures for construction restart
The Building and Construction Authority (BCA) said it is implementing further measures to
accelerate the resumption of construction work, as almost all foreign dormitories have been
declared cleared of Covid-19 by the Inter-Agency Taskforce (ITF).
These include allowing all companies and their foreign construction workers to resume work
outside construction sites and supply works premises without seeking approval from BCA;
temporarily suspending the 10-accommodation criteria; and allowing workers to resume work
while cohorting is being carried out in Foreign Employee Dormitories Act-licensed (FEDA-
licensed) dormitories.
However, for the deployment of workers at construction sites and supply works premises, main
contractors are still required to apply for BCA's approval to resume work, the authority said. To
minimise the risk of Covid-19 transmission, main contractors will have to set out in their
applications the necessary safe management measures and continue to apply on behalf of
subcontractors and their workers.
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Aug 14, 2020 / Issue 33
Links to the story:
https://www.businesstimes.com.sg/government-economy/bca-announces-measures-for-construction-restart
https://www.straitstimes.com/singapore/rules-eased-to-help-construction-sector-find-its-feet
https://www.straitstimes.com/singapore/lifting-of-rule-cheered-by-hard-hit-construction-firms
https://www.straitstimes.com/singapore/trial-to-let-workers-leave-dorms-for-errands
MAS puts S$250m to beef up financial-sector innovation, grow Singaporean fintech
talent
The most visible payoff for the investment in technology in the financial sector over the years has
been in how well the industry responded to the Covid-19 pandemic, said Ravi Menon, managing
director of the Monetary Authority of Singapore (MAS).
To further accelerate technology and innovation-driven growth in the financial sector, he
announced that MAS will commit S$250 million over the next three years to enhance the existing
Financial Sector Technology and Innovation (FSTI) scheme.
It aims to encourage the expansion of the existing innovation labs and further develop Singaporean
talent in fintech, he said, adding that it has also taken industry feedback on board.
Links to the story:
https://www.businesstimes.com.sg/banking-finance/mas-puts-s250m-to-beef-up-financial-sector-innovation-grow-
singaporean-fintech
https://www.straitstimes.com/business/banking/mas-commits-250m-to-boost-innovation-tech-in-financial-sector
Condo owners should go easy in exercising penalty clauses during Covid-19: MOM
The Ministry of Manpower (MOM) and its tripartite partners have called on condominium owners
and management corporations to exercise restraint in activating penalty clauses for delays to the
delivery of services during the Covid-19 period.
In an advisory, MOM and the partners noted that the pandemic has disrupted services related to
the maintenance of condos and other private developments. Managing agents (MAs) and facility
management companies (FMCs) generally require workers to be on-site to do the work, and, as
service providers, have been hit by the tightening of the number of workers available.
MCSTs and building owners should pay MAs and FMCs according to the contract terms unless
there are changes in services required, it said.
Link to the story:
https://www.businesstimes.com.sg/real-estate/condo-owners-should-go-easy-in-exercising-penalty-clauses-during-
covid-19-mom
JTC tests devices to aid safe distancing at three worksites
To facilitate the ease of meeting safe distancing measures put in place at construction sites as a
result of Covid-19, JTC Corporation has been testing out various technologies that will help
employers and workers alike.
They include the use of artificial intelligence (AI) cameras, facial recognition and thermal
scanners, and a bluetooth dongle.
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The bluetooth dongle, which is a wearable device, ensures that workers stand at least one metre
apart from each other, and will beep if they do not. Facial recognition and thermal scanners,
installed at entrances of worksites, are used for identification purposes and for temperature-
measuring.
AI cameras will allow employers to monitor the conditions on the ground and can also identify
areas within the worksite that tend to get overcrowded. This allows employers to then make
necessary adjustments to reduce the number of workers in the respective zones.
Pilot testing for the devices began at the end of June at three of JTC's worksites - JTC Logistics
Hub, Kranji Green and Punggol Digital District.
Link to the story:
https://www.businesstimes.com.sg/real-estate/jtc-tests-devices-to-aid-safe-distancing-at-three-worksites
Singapore, Japan set to resume essential travel next month
Essential travel for expatriates and businessmen between Singapore and Japan could resume next
month, as both countries agreed to ease restrictions aimed at combating the spread of Covid-19.
The two countries are currently in talks to set up two tracks that will allow cross-border travel,
said a joint statement by Foreign Minister Vivian Balakrishnan and his visiting Japanese
counterpart Toshimitsu Motegi.
The first track, called a "residence track", will provide for a special quota of cross-border travel by
work pass holders with the necessary public health safeguards - including a 14-day stay-home
notice upon arrival in the respective countries.
The second track is a reciprocal green lane - known as a "business track" - where short-term
business travellers will be subject to a controlled itinerary for the first 14 days, with the necessary
public health safeguards.
The ministers agreed on major points of this track, and tasked officials with finalising the
agreement by early next month. This would make Singapore one of the first countries to begin this
exchange of business travellers with Japan.
Links to the story:
https://www.straitstimes.com/singapore/spore-japan-set-to-resume-essential-travel-next-month
https://www.straitstimes.com/singapore/singapore-japan-to-work-on-green-lane-for-essential-travel
Economy
Singapore may take 'some quarters' to bounce back from 2020 recession
All eyes are now on Deputy Prime Minister Heng Swee Keat's arsenal of fiscal bazookas, as the
Covid-19 pandemic drags the economy towards its worst recession since independence.
That's as the deadly novel coronavirus, which reached Singapore's shores in January, has done
enough damage in just half a year to wipe out economic gains since 2016.
Singapore's economy is now expected to shrink by between 5 per cent and 7 per cent this year,
after the Ministry of Trade and Industry (MTI) tightened its forecast.
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C
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Aug 14, 2020 / Issue 33
The gross domestic product (GDP) shrank by 13.2 per cent year on year - widening from 0.3 per
cent in the quarter prior - in the second quarter, which was marred by a two-month "circuit breaker"
or quasi-shutdown.
To be sure, a pick-up is all but inevitable after that trough, which was Singapore's worst quarter
on record.
In any case, even a sequential recovery will not pull the year-on-year GDP change into positive
territory - especially as downside risks remain, including rising geopolitical tensions between the
United States and China.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-may-take-some-quarters-to-bounce-back-from-
2020-recession
https://www.businesstimes.com.sg/government-economy/upcoming-fiscal-support-may-be-more-targeted
https://www.businesstimes.com.sg/government-economy/some-smes-already-in-process-of-transforming-themselves
https://www.straitstimes.com/business/economy/spore-economy-suffers-worst-quarterly-contraction-on-record
https://www.straitstimes.com/politics/spore-must-chart-new-path-as-it-wont-return-to-pre-covid-world-chan
https://www.straitstimes.com/politics/pandemic-circuit-breaker-cut-gdp-by-11b-but-budget-support-helped-
ministry-analysts
https://www.straitstimes.com/business/economy/economists-expect-tepid-recovery-while-businesses-hold-off-hiring
NODX 2020 growth forecast raised to 3-5 per cent
Thanks to better-than-expected shipments of certain products and a low base, Singapore's non-oil
domestic exports (NODX) grew 6.5 per cent in April-June, higher than the revised 5.4 per cent
(5.8 per cent initially) rise in the first quarter - tighter restrictions on movements and economic
activities notwithstanding.
The projected worst-case-scenario for global trade unlikely to happen, as well as improved oil
prices have jointly led Enterprise Singapore (ESG) to raise its trade forecasts for the full year - its
third revision so far in this year of the coronavirus pandemic. The government trade promotion
agency now sees a 2020 NODX growth of 3.0 to 5.0 per cent, instead of a contraction of 1.0 to 4.0
per cent as previously forecast.
Total trade is still tipped to shrink this year by between 8.0 and 10 per cent, but the drop is less
severe than the previous forecast of 10 and 12 per cent. This is in line with the World Trade
Organization's latest estimate in April - that global trade is unlikely to drop 32 per cent.
Links to the story:
https://www.businesstimes.com.sg/government-economy/nodx-2020-growth-forecast-raised-to-3-5-per-cent
https://www.straitstimes.com/business/economy/non-oil-exports-now-forecast-to-grow-3-to-5
Manufacturing sector grows by 3.5% in H1 2020
Biomedical manufacturing and precision engineering clusters helped grow the manufacturing
sector in the first half of this year, contributing 5.0 percentage points and 1.5 percentage points
respectively.
The sector grew by 3.5 per cent year-on-year in H1 2020, with most of the growth clocked in Q1.
The sector contracted by 0.7 per cent in Q2, reversing the 7.9 per cent growth in Q1.
Specifically, the biomedical manufacturing cluster expanded 27 per cent year-on-year in H1,
extending the 4.1 per cent growth in H2 2019. This was fuelled by the pharmaceuticals segment
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(36 per cent) as the production of both active pharmaceutical ingredients and biological products
increased over the period. On the other hand, output from the medical technology segment declined
by 1.4 per cent, on account of workplace disruptions due to the circuit-breaker measures, as well
as weak demand for non-Covid-19 related medical devices.
The precision engineering cluster grew 12 per cent year-on-year in H1, up from the 2.4 per cent in
H2 2019. The machinery and systems segment was the main engine of growth within the cluster
(17 per cent expansion) on the back of strong global demand for semiconductor manufacturing
equipment in anticipation of 5G demand.
The Economic Survey of Singapore report stated it expects the biomedical manufacturing cluster
to continue to see positive output growth in H2, although at a slower pace. Similarly, output in the
electronics and precision engineering clusters is projected to increase moderately.
Link to the story:
https://www.businesstimes.com.sg/government-economy/manufacturing-sector-grows-by-35-in-h1-2020
24,000 job seekers placed; MOM weekly updates to highlight opportunities
As at the end of July, 24,000 job seekers have been placed under the SGUnited Jobs and Skills
package, said the Ministry of Manpower (MOM), in the first of a series of weekly updates on the
job situation.
The 24,000 placements are part of 92,000 committed opportunities curated by the National Jobs
Council as at end-July, which include approved places under SGUnited Jobs and Skills
programmes; public sector jobs; and private sector jobs advertised on government portal
MyCareersFuture.sg.
About seven in 10 of these are for professionals, managers, executives and technicians (PMETs).
More than half of the total opportunities are public sector jobs, or are "significantly funded by the
government", including traineeships and attachments with private sector firms.
Of these, traineeships for recent and new graduates form the largest share, with 16,400 places for
PMETs and 1,100 for non-PMETs.
Of 12,700 government-funded short-term job opportunities, lasting up to 12 months, more are for
non-PMETs than PMETs. But the reverse is true for the 10,500 long-term jobs.
The remaining 42,000 or so opportunities are offered by private sector employers. The bulk are
long-term jobs, with 26,200 for PMETs and 8,300 for non-PMETs.
Links to the story:
https://www.businesstimes.com.sg/government-economy/24000-job-seekers-placed-mom-weekly-updates-to-
highlight-opportunities
https://www.straitstimes.com/singapore/manpower/92000-new-jobs-training-positions-generated-as-at-end-july
https://www.straitstimes.com/singapore/manpower/public-to-get-regular-updates-on-job-market
Singapore's openness is advantage amid supply chain changes: Chan
Singapore’s long-term policy posture of openness will stand it in good stead amid the global
reshuffling of supply chains, said Minister for Trade and Industry Chan Chun Sing.
Even as trade tensions threaten to lead to a "bifurcation" of trade, Singapore can continue to be an
integrator, and a base which welcomes everyone to come and do business, he said during a webinar
on the economic outlook for trade, part of The Economist's Asia Trade Insight Hour series.
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Mr Chan began by setting out three points. First, global growth will slow with less trade. Global
trade enabled growth that uplifted millions from poverty, but uneven distribution of the benefits
has led to pushback. Yet it remains in the interests of like-minded countries and companies to work
together to uphold the rules-based trading system, he said.
Second, and relatedly, "trade necessitates domestic adjustments". While trade is a net positive for
a country, its benefits may not be felt evenly, which is why adjustments must be made to ensure
that industries and workers are not left behind.
Third, when it comes to supply chains, many countries and companies are "aware of the need to
balance efficiency with resilience" but must not arrive at the wrong conclusions, he said.
"Resilience doesn't mean autarky, doing everything ourselves. Resilience comes from diversity of
supply chains and markets."
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapores-openness-is-advantage-amid-supply-chain-
changes-chan
https://www.straitstimes.com/singapore/spur-global-digital-economy-for-next-lap-of-growth-chan
Three in four jobs in financial sector go to locals: MAS
Singapore’s financial sector created 22,000 net jobs between 2015 and 2019, and of these, three
out of four jobs went to locals, said a top official from the Monetary Authority of Singapore
(MAS).
In the first half of this year, employment rose by about 1,500 as well, based on MAS' estimates,
said Jacqueline Loh, deputy managing director at the MAS, in a speech at a virtual job fair
organised by the Institute of Banking and Finance (IBF).
And there too, Singapore citizens and permanent residents bagged at least 75 per cent of the jobs
created.
To add, 15,000 local jobs created between 2015 and 2019 were at salaries within the top 40 per
cent of 2016 salaries. The median income of locals in the sector last year was S$7,600, well above
the national median of S$4,600.
All in, Singapore's financial sector, which accounted for 13.3 per cent of the Republic's GDP last
year, employed more than 170,000 workers last year.
Links to the story:
https://www.businesstimes.com.sg/banking-finance/three-in-four-jobs-in-financial-sector-go-to-locals-mas
https://www.straitstimes.com/singapore/manpower/mas-urges-financial-institutions-to-grow-sporean-talent-pool
https://www.straitstimes.com/singapore/manpower/banks-say-they-keep-strong-local-core-in-workforce
Digitalisation of local SMEs could add up to US$24b to GDP by 2024: survey
Higher revenue and productivity gains from digital transformation by small and medium-sized
enterprises (SMEs) could add as much as US$24 billion to Singapore's gross domestic product
(GDP) by 2024, helping the country rebound from the Covid-19 pandemic.
This is according to a survey of 1,400 small and medium businesses (SMBs) across the Asia-
Pacific region, commissioned by Cisco and conducted by International Data Corporation (IDC).
The survey found that digitally mature SMEs enjoy twice as many benefits in terms of revenue
and productivity, compared to SMEs that have an indifferent approach to digitalisation.
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Link to the story:
https://www.businesstimes.com.sg/sme/digitalisation-of-local-smes-could-add-up-to-us24b-to-gdp-by-2024-survey-
0
Law firms take more extensive cuts amid unprecedented crisis
Several well-known law firms in Singapore, including one of the Big Four, have imposed pay cuts
across the board - a move not seen in previous crises.
Dentons Rodyk and Big Four firm WongPartnership are among the largest law firms here that have
announced firm-wide wage cuts, with both doing so by stripping out lawyers' "front-loaded"
bonuses.
A spokesperson from Drew & Napier would only say that the firm has not implemented any pay
cuts.
Allen & Gledhill and Rajah & Tann, the remaining two Big Four firms, did not address queries on
whether they have implemented such cost-cutting measures.
Link to the story:
https://www.businesstimes.com.sg/companies-markets/law-firms-take-more-extensive-cuts-amid-unprecedented-
crisis
Food ordering startup Eatsy shutters operations
Eatsy, a Singapore-based restaurant ordering and payment startup, has fully ceased operations.
Before it closed down in April, Eatsy had about 20 staff in Singapore and Indonesia. These
employees received help in transitioning to other companies, founder Shaun Heng told The
Business Times (BT). Mr Heng joined Binance-owned cryptocurrency data firm CoinMarketCap
as chief of staff in May.
Link to the story:
https://www.businesstimes.com.sg/garage/food-ordering-startup-eatsy-shutters-operations-0
Strong demand for non-PMETs in warehouse logistics as buying habits shift online
amid Covid-19
Despite the pandemic's hit to the economy and labour market, certain sectors are still hiring for a
range of non-executive positions.
Warehousing logistics has emerged as the sector with the strongest demand for manpower in non-
PMET (professional, manager, executive and technician) roles, according to a job portal.
Based on the volume of job postings in June and last month, after the circuit breaker period, the
sector has overtaken retail and hospitality, which occupied the top spots last year.
Hospitality and food and beverage (F&B) came in second, while general production and operators
ranked third, followed by cleaning and housekeeping.
Other types of non-PMET roles in demand now include technicians and those in delivery services
and sales.
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Links to the story:
https://www.straitstimes.com/singapore/manpower/strong-demand-for-non-pmets-in-warehouse-logistics
https://www.straitstimes.com/singapore/manpower/firms-linked-to-e-commerce-among-those-still-hiring
Hospitality
Pan Pacific to contribute 25,000 free hotel stays to healthcare workers
Pan Pacific Hotels Group will provide 25,000 room nights in complimentary hotel stays to
healthcare workers, to honour their contributions in fighting the Covid-19 pandemic.
In a news release, Pan Pacific said that it will be contributing the stays to SingHealth, the National
Healthcare Group and the National University Health System (NUHS).
Pan Pacific's chief executive officer Choe Peng Sum said that the contribution, which is worth
S$6.5 million, "is our way of honouring (healthcare workers) for their exceptional spirit and
service to the nation and community through this crisis."
Called HERO, or Healthcare Employees Recognition and Ovation, the initiative will allow the
healthcare workers to enjoy a stay at six of Pan Pacific's hotels from Dec 1 this year to March 31,
2021.
Link to the story:
https://www.businesstimes.com.sg/life-culture/pan-pacific-to-contribute-25000-free-hotel-stays-to-healthcare-
workers
Ascott converts some apartments into work suites
Capitaland’s wholly-owned lodging business unit, The Ascott Ltd, is blurring the line between
office property and hospitality.
And it could extend the usage of its space for industrial purposes too, as the company strives to fill
a hole left by the Covid-19 pandemic.
Ascott launched a "work-in-residence" initiative to transform selected apartments worldwide into
work suites for use during the day.
Guests, corporates and students seeking alternative locations to work-from-home or study can
book work suites across over 60 participating properties in more than 30 cities over 10 countries,
the company said.
Links to the story:
https://www.businesstimes.com.sg/companies-markets/ascott-converts-some-apartments-into-work-suites
https://www.straitstimes.com/business/companies-markets/ascott-turns-apartments-into-work-suites-amid-
telecommuting-trend
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Industrial
Industrial gets chic: Sungei Kadut gears up for the future with green revamp
In the green masterplan for the Sungei Kadut industrial area, workers can cycle to work from a
new Mass Rapid Transit (MRT) train station and enjoy "pocket parks" on the scenic route to their
offices.
Then at lunchtime, they will be able to unwind at one of the many green spaces, observing
migratory birds such as the whimbrel foraging for food in mudflats and wetlands, just a hop and
skip away from the district's high-rise factory buildings.
These are some of the early concept renderings by JTC Corporation, which is working on the
revamp of the 500ha enclave, one of Singapore's oldest industrial estates.
These plans will be carried out carefully, with JTC conducting environmental impact studies next
year.
Link to the story:
https://www.straitstimes.com/lifestyle/home-design/industrial-gets-chic
AA Reit proposes buying Bulim Street logistics facility for S$129.6m
The trustee of AIMS Apac Reit (AA Reit) on Aug 7 entered into a put and call option agreement
with Titan (Wenya) to acquire a ramp-up logistics warehouse at 7 Bulim Street for a purchase price
of about S$129.6 million.
The total cost of acquisition is around S$135.5 million, after including an estimated stamp duty of
around S$3.9 million and estimated transaction costs of about S$2 million.
The property will be acquired at an initial net property income (NPI) yield of 7.07 per cent, based
on its NPI in the first year of ownership of S$9.2 million over the S$129.6 million purchase price.
When based on the estimated total acquisition cost of S$135.5 million, NPI yield will be 6.76 per
cent.
7 Bulim Street is a master-tenanted four-storey logistics facility with an ancillary office on each
level. The property sits on a land area of 34,095 sq m, with a remaining land tenure of
approximately 22.2 years as at June 30, 2020. The gross floor area of the property is 68,190 sq m.
Link to the story:
https://www.businesstimes.com.sg/companies-markets/aa-reit-proposes-buying-bulim-street-logistics-facility-for-
s1296m
Logistics sector responds to pandemic pressure with tech, new business models
As the pandemic puts pressure on the logistics sector, many industry players are turning to
technology and experimenting with new business models to overcome operational challenges and
chart a new future.
The challenges faced by the logistics sector now are not just about addressing unexpected external
pressures, but also scaling up to meet new forms of demand.
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In Singapore, for instance, the "circuit breaker" period forced many retailers and food providers to
hastily develop digital presences. Consequently, demand for last mile fulfilment of online
purchases, groceries, and food surged.
Link to the story:
https://www.businesstimes.com.sg/transport/logistics-sector-responds-to-pandemic-pressure-with-tech-new-
business-models
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
information contained in this document is correct. Any interested party should undertake their own enquiries as to the accuracy of the information.
Huttons Asia excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
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